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Housing Shortage Has Deep Roots — and a Wide Impact

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Features Special Coverage

Analysis of a Crisis

 

Keith Fairey says the housing crisis gripping the region, the state, and many parts of the country didn’t happen overnight.

“We got here over decades of underinvesting in housing production nationally, and not tuning that production to the needs and demographic changes of communities,” Fairey, president and CEO of Springfield-based Way Finders, noted as he summed up the problem succinctly yet effectively, before noting that a resolution to the matter won’t come overnight, either.

But, in many respects, the state — and this region — don’t have a lot of time, said Fairey and all those we spoke with on this matter, because that word ‘crisis’ is not hyperbole.

It’s real, and it’s a crisis — often called ‘the affordable housing crisis’ — that has a broad impact: everything from increases in homelessness to a decline in the overall health and well-being of the region (housing is a key social determinant of health); from a stifling of growth in cities and towns (many of which stand to benefit from a COVID-induced desire among some to leave larger metropolitan areas for a more rural place to work remotely) to a competitive disadvantage for the region and the state when it comes to business and economic development.

Indeed, employers across all sectors are trying to attract and retain talent, and their assignment is made that much more difficult if qualified applicants can’t find affordable housing. Or any housing.

“One of the things we have to do is make sure Massachusetts remains a competitive state for years to come, and one of the main indicators of whether you are competitive is ‘can people afford to live in this state?’” said state Sen. John Velis, a member of the Senate’s Housing Committee who represents the 4th Hampden District, which includes the gateway cities of Westfield and Holyoke and parts of Chicopee, as well as West Springfield, Agawam, Easthampton, and several other communities. “And the real demographic that scares me is the 20- to 35-year-olds, those who are just getting started; to that extent, that we’re having a lot of outmigration.”

Elaborating, Velis, among others, said the housing crisis involves every level of housing and many different constituencies, from renters facing steep hikes in what they have to pay every month — with many now totally priced out — to homeowners and would-be homeowners facing both shortages in every price range and prices that have skyrocketed, due mostly to those shortages of inventory.

And the situation has only been exacerbated by mortgage rates — now approaching 8% — that are prompting homeowners to stay where they are and pay 2% or 3%, rather than trade up or scale down (in the case of retiring Baby Boomers), leaving fewer starter homes and houses in the middle price range.

“We got here over decades of underinvesting in housing production nationally, and not tuning that production to the needs and demographic changes of communities.”

The full extent of the housing crisis in this region is spelled out in the Greater Springfield Housing Study, undertaken in conjunction with the UMass Amherst Donahue Institute, said Fairey, noting that it showed a housing-supply gap of 11,000 units in the Pioneer Valley projected for 2022, expected to grow to 19,000 units by 2025 “if we don’t do something.”

In most respects, the crisis comes down to the simple laws of supply and demand, said those we spoke with. There is more demand than supply, and there has been for some time.

Keith Fairey

Keith Fairey says the housing crisis has been years in the making and results from several factors, including a lack of investment in new housing.

Creating more supply is challenging on many levels. Developers must be incentivized to build housing across all categories — not just at the very high and lower ends, said Velis, adding that municipalities must adjust their zoning laws to accept more housing, and these cities and towns, and those who live within them, must do more than support more housing anywhere but in their communities (more on that later).

All those we spoke with point to a pending housing bond bill as a huge factor in efforts to stem the crisis and start the pendulum swinging back when it comes to those laws of supply and demand.

The last such bill, passed in 2018, totaled $1.8 billion for what Fairey called a “market basket of programs,” including initiatives to create more workforce housing, supportive housing, public housing, and other types of inventory. This bill needs to be even bigger, he said, adding, “this is a critical moment for the state.”

“We have to make sure that this housing bond bill that we do is large enough, robust enough, expansive enough to really, really start to push back, to really build units, and to deal with all components of the housing crisis.”

Velis agreed. “We have to make sure that this housing bond bill that we do is large enough, robust enough, expansive enough to really, really start to push back, to really build units, and to deal with all components of the housing crisis,” he said, adding that there is not likely to be another housing bond bill for some time. “It has to be all inclusive to all of the challenges.”

For this issue, BusinessWest takes an in-depth look at the housing crisis, how we got here, and what needs to happen now.

 

The Pressure Is Building

As he talked with BusinessWest, Velis, was preparing for deployment as a National Guardsman in ongoing efforts to assist at shelters and hotels in various communities as the state struggles mightily with an influx of migrants.

Gov. Maura Healey declared a state of emergency during the summer because of the strain on the shelter system, and on Aug. 31, she activated up to 250 members of the National Guard, with Velis, a veteran of the U.S. Army Reserves and the only Guardsman currently serving in the state Legislature, being one of them.

John Velis

John Velis, seen here with Lt. Gov. Kim Driscoll and Gov. Maura Healey, says communities must think outside the box and be more accepting of new housing.

He wasn’t exactly sure where his assignment would take him, but he was sure the influx of migrants represents just another facet of the housing crisis and another grim reminder that solutions are needed — and soon.

“These folks [migrants] are going to hotels, they’re going to colleges and universities,” he said, with discernable exasperation in his voice. “At some point in time, someone is going to ask the question — and it’s going to be me, because I’ve already asked it — ‘when they’re done with their temporary hotels and done with their temporary shelters, where are they going? We don’t have the housing stock. Where are they going to live?’”

The question ‘where are they going to live?’ applies to more than migrants, of course. It applies to a number of constituencies and almost every community in the region, from the larger cities to the smaller towns.

Indeed, as BusinessWest continued its Community Spotlight series this year, talking with business leaders and elected and appointed officials in dozens of municipalities, housing was cited repeatedly as an area of concern — and urgency.

Holyoke Mayor Joshua Garcia was one of those elected leaders, and he reiterated what he told BusinessWest back in March — that the housing situation in his city, as in many others, is, in a word, dire.

And as he talked about it, he said the crisis extends across the full spectrum of housing. While much of the recent developments have involved affordable housing, there is still a need for more. Meanwhile, there is an urgent need for market-rate housing, such as that which exits at one of the city’s redevelopment success stories, the Cubit building, where there is a lengthy waiting list for the loft apartments, and also transitional housing for an unfortunately growing homeless population.

“It’s underinvestment, poor planning, and, truth be told, a fair amount of resistance to change and development from different towns and communities that are all about preserving character, and not thinking about what future needs will be and how to keep cities and towns vibrant.”

“Right now, Holyoke is number three, per capita, in the whole state when it comes to children enrolled in our school district that are homeless,” Garcia told BusinessWest. “It’s more than Springfield, more than Worcester, more than Boston. We have families that are in shelters looking for transitional housing; we need more of it.”

It also needs much more market-rate housing, he went on, while relating a conversation he and other city officials had with leaders at a relatively new in business in town, Clean Crop Technologies on Dwight Street, while getting a tour of the facilities.

“We asked them what they needed from us,” he recalled. “We’re thinking they’re going to say they want the roads or sidewalks better, or improved lighting, but to our surprise, they said, ‘we need housing options down here.’”

Elaborating, Garcia said that, while many people commute to Holyoke to work, many would like to live and work there, and at present, many are finding that a challenge.

Vince Jackson, executive director of the Greater Northampton Chamber of Commerce, agreed. He noted that there are many who would like to live and work in Northampton, but for far too many, only the first part of that equation is attainable.

“There’s housing available in Northampton for sale, but are they affordable for the working class and for younger people?” he asked, answering his own question by saying that, in most cases, the answer is ‘no.’

Meanwhile, there have been efforts to build more affordable housing, but many people don’t qualify to live in such units because they earn too much or too little.

Holyoke Mayor Joshua Garcia

Summing up the crisis succinctly, Holyoke Mayor Joshua Garcia says that “what we need is rapid housing construction.”

“They’re never in that sweet spot,” Jackson noted. “And it takes developers months to sell these units because they go through hundreds of applications, and finding people who qualify on all fronts is a real challenge. So those properties can sit vacant.”

 

Addressing the Problem

Getting back to how we got here, Fairey said the state, and the nation, were essentially caught flatfooted as the Baby Boom generation continued to age, live longer, and age in place — and not build enough housing, especially affordable housing, for the Millennials and other generations to follow.

“Housing for workforce and for middle-income people hasn’t been produced, and at the same time, the cost of that production has increased very dramatically,” he explained. “So if folks look at it from an economic standpoint, they’re only going to build high-end houses because, in order to recoup your money, you need to sell at a high price. But that puts a gap in our marketplace for starter homes.

“It’s underinvestment, poor planning, and, truth be told, a fair amount of resistance to change and development from different towns and communities that are all about preserving character, and not thinking about what future needs will be and how to keep cities and towns vibrant,” he went on, adding that there are some area communities where some progress is being made — although very little of it has come quickly or easily.

He mentioned Amherst, where Way Finders has completed — after 10 years of resistance — Butternut Farm, an affordable-housing community featuring 27 apartments in farmhouse-style buildings set on four acres. It’s described as “a quiet, rural setting with plenty of open space and easy access to surrounding communities.”

Amherst has also put out an RFP for housing in a surplus school, and it has acquired land for more affordable housing, he said, adding that the community has also created an affordable-housing trust to put more units in the pipeline long-term.

Northampton has taken similar steps, earmarking a surplus school for affordable housing, and several other communities, such as South Hadley, have created what are known as 40R zones, which promote compact residential and mixed-use developments in areas near transit stations, commercial centers, or other suitable locations, while leaving the surrounding land untouched.

“There are towns that are beginning to realize need and create opportunities for investment,” said Fairey, adding that considerably more work will be needed if housing supplies are going to approach demand.

In the meantime, if individuals and families cannot find housing they can afford, or any housing at all, in a given state or region, they will simply go somewhere else. And the outmigration statistics regarding the Bay State bear this out.

The Pioneer Institute reported recently on IRS data showing that net outmigration from Massachusetts is accelerating rapidly. Between 2019 and 2021, the state rose from ninth to fourth among all states in net outmigration of wealth, behind only California, New York, and Illinois. And while the so-called ‘millionaire’s tax’ — and high taxes in general — are cited as perhaps the biggest reason for this outmigration, soaring housing prices are also considered a key factor, especially among younger generations.

“The main demographic that’s leaving Massachusetts, that we know of empirically, is the 20- to 35-year-olds,” Velis said. “I know this is an antiquated notion, but living in that house with the picket fence, being a homeowner, is becoming more and more elusive in Massachusetts. So what we’re seeing is states like Tennessee and North Carolina really eating our lunch in this regard; we have data that they’re going there.”

Fairey agreed, noting that, while the state has many strong selling points when it comes to attracting businesses — and people — housing stock certainly isn’t one of them.

“We can talk about all the great potential we have here in Western Massachusetts — we have wonderful higher-education institutions, we don’t have the traffic and other things that you have in Eastern Mass., we have great access north-south, and we have space for both residential development and commercial development of all types. But what you can’t say to someone you’re trying to bring here is that we have enough housing for them.”

Garcia joined that chorus, saying Holyoke is in a growth mode and wants to add more businesses and more jobs, but is being hindered in that assignment by a lack of housing across the spectrum.

“We’re trying to grow our population and bring in new businesses, but we can’t achieve our economic-development objectives and move to the extent that we know we can if we don’t have more housing for all spectrums,” he explained. “Right now, we’re stuck. What we need is rapid housing construction.”

 

Homing In on Solutions

To stem this tide, make the state more competitive, and address the many side effects of the housing crisis, including a rise in homelessness, the simple answer is to build more housing. Only, it’s not that simple.

“We need to do everything in our power to encourage more building,” said Velis, adding that, while the state has done an adequate job of incentivizing the building of low-income housing, it has to be better at encouraging creation of more inventory in the other categories.

“The reality is that, if you’re a developer, part of your equation is to make money,” he went on. “If you’re doing a cost-benefit analysis, unfortunately, there just isn’t the money to be made in low-income housing in the same way that there is in market-rate housing and other categories.”

Velis noted that initiatives like HDIP (the Housing Development Incentive Program) — passed as part of a recent tax-reform package to generate more development of market-rate housing in gateway cities — will hopefully encourage more building in that category. Still, more must be done to encourage efforts that will bring about more inventory.

“Developers want to make money, and guess what? They’re not evil for wanting to make money; that’s their job,” he went on. “Because the pressure valve is so intense now, if you can help market-rate housing, you’ll also help low-income housing, and if you help low-income housing, you’re also going to help market-rate housing.”

Overall, HDIP is expected the lift the current cap on market-rate housing incentives from $10 million to $57 million, which Velis believes will clear the backlog of projects currently on the drawing board statewide and generate $4 billion in private investment that will create 12,500 new homes in gateway cities.

This will help, but more must be done on the state level to encourage building, he said. “I would argue that communities, in many respects, have not been given the tools they need to combat this crisis. We haven’t done a good enough job of incentivizing developers to do this kind of work.”

“We’re trying to grow our population and bring in new businesses, but we can’t achieve our economic-development objectives and move to the extent that we know we can if we don’t have more housing for all spectrums. Right now, we’re stuck.”

That said, Velis noted that more communities need to support additional housing within their borders, not anywhere but, which remains a lingering sentiment.

“Many people don’t want to acknowledge this, but NIMBY is a real-world thing,” he said. “And if everyone continues to say, ‘we need to build … just not here,’ then we have a real problem. And I would argue that we’re getting dangerously close, perilously close, to being there. If every community cites reasons why they can’t be the place for us to build new housing units, then we’re going to implode.”

He said Massachusetts needs to start thinking outside the box and perhaps adopting a new approach — or, at least, a new slant on an old one.

Indeed, for some time, the state has employed a carrot-and-stick approach when it comes to incentivizing municipalities to facilitate the building of new housing units, said Velis, adding that, if more do not agree to become part of the solution, then maybe the state needs to focus on the stick more than the carrot.

“The paradigm has changed, and if communities won’t, of their own volition, say, ‘we’re going to build this,’ even with the incentives that we’re offering, at some point in time, you can get to a point where you have two options,” he said. “One is to do nothing, and Massachusetts will become the most difficult place, the most untenable place, to live in the country from a housing standpoint. Or we can say, ‘we’ve tried every carrot imaginable to encourage building, and now, we’re going to switch it up a bit and go down the path of sticks. If you don’t want to build, that’s your prerogative, but we just want you to know that, if you’re not following the law and you’re not building, then these are the state funds that you could find yourself no longer eligible for.’”

Fairey echoed Velis’ thoughts on the pending bond bill, and how it provides real hope for reversing the trends regarding supply and demand — if it’s big enough and bold enough.

“It’s unclear what the number will be — it will be bigger than $1.8 billion,” he said. “But the needs are quite significant.”

Marois Construction Builds on a Strong Foundation

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Construction Special Coverage

Setting Their Sites

Marois Construction

Marois Construction recently converted this single-family farmhouse built around 1860 into a three-story, 30-unit housing complex (top).

 

Construction is a lot like the mail. Projects have to be delivered on time, regardless of the weather.

And to say it’s been a rainy year is an undertstatement.

“Weather is a common occurrence in the construction industry. And, depending on what we have going on at any particular time, we typically have to continue operations, as long as it’s not a total washout,” said Carl Mercieri, vice president of Marois Construction in South Hadley.

On one day of downpours in mid-September, he recalled, “our crews were in the field. They were tying rebar for footings for a project they were doing for the Chicopee Water Department. They braved the weather and set up some collapsible canopies.

“Our project schedules don’t take weather into consideration. So we’ve got to complete them,” Mercieri added. “And not only that, but the crews doing that job need to move on to another job. So we do the best we can with what we got to work with. And, you know, I’ve been doing this for over 40 years, and the weather is not changing here in New England.”

But plenty else has changed in construction over the past 50 years, and Marois Construction — founded by company President Joe Marois in 1972 — celebrated that half-century milestone last year. Those changes run the gamut from new technology to cutting-edge materials to modern priorities in the building world, especially around green, energy-efficient building.

Through all of it, Marois has steadily built a solid reputation, and its current workload reflects that.

“Backing up a year, 2022 was a stellar year, and in 2023, we got off to the same start,” Mercieri said “Every year is a little bit different, though. This year has been a bit quirky. We’ve had a lot on our books, but for one reason or another, we’ve had some projects that got delayed.

“And then, of course, summer is our busy season, with all the college and school work. So we were working six days a week. Typically, when September rolls around, we start to slow down, and things get back to normal,” he went on. “But when those projects that actually got started got delayed, they all came to life in September. So we’re not seeing any slowdown here, looking at the third quarter and toward the end of the year. So it looks like it’s going to be another really good year for us.”

 

Broad Range of Expertise

Marois performs both public and private work, both new construction and renovations, across a range of sectors, including commercial, industrial, and educational projects, Mercieri said.

“Right now we’re doing a branch bank … we’ve got a couple of schools that we’re doing, kitchen renovations in schools. We’re also building a police department for one of the local municipalities.”

Carl Mercieri

Carl Mercieri

“I’d say probably 70% of the guys in the workforce are closer to retirement age than not. So it’s extremely important that we get some of the younger people in.”

This diversity can be a positive in an uncertain economy.

“With all the ARPA money out there, there’s a lot of school work going in the public sector,” he added. “And we’re seeing a trend toward the private schools and charter schools. We’ve got one that we’re working on right now out in Stockbridge.”

In the post-pandemic world, contractors have been faced with a number of challenges all at once, from the impact of inflation to supply shortages. Mercieri said those trends are starting to subside, but not as quickly as most would like.

“We continue to see issues. There seems to be longer lead times on products,” he noted, citing doors and windows as examples. “A few years ago, before COVID, we could call in an order in the morning for hollow metal door frames and have them by in the afternoon. Now, we’re seeing a lead time of several weeks, which really impacts the schedule.

“For a while there, lumber was scarce, but lumber seems to have rebounded,” he added. “Prices have come down somewhat, but they really didn’t get back to where they were.”

And when supplies and equipment are difficult to procure or beset by delays, “it keeps the project going. You can’t close it out, even though it’s substantially complete. So one of the things that we deal with is that, going into a project, you can anticipate these delays, but you really can’t put a finger on how long the delays are going to be; it really depends on the manufacturer’s production line and what they’re doing.”

In one case this year, involving a generator, he was given a delivery date of April, and a week or two before it was supposed to ship, the date was pushed to June, then it was pushed again to August.

“We ended up getting it the first or second week of September,” he went on. “So you have no control over that, and it’s an unfortunate situation. And we don’t know where the problem lies; we don’t know if it’s a matter of materials on the manufacturer’s end or labor or a combination of both. But it has a pretty big impact on the construction industry, for sure.”

So has a persistent workforce shortage, one that has affected many industries lately. “It’s tough, but that’s been a trending issue over the years; I don’t think that’s anything new in this industry,” Mercieri said.

“Ninety percent of it is showing up every day; 10% is paying attention and learning.”

“So … we’ve adapted,” he went on. “We run our crews a bit leaner, meaning when we set up a job, rather than having a large crew over there, we’ll set up a smaller core crew at each job. And then, as a task comes up, we’ll move people around to the job and build up the crew, get them in, get them out, and then move them on to another job.”

The leadership team at Marois is certainly not alone in noting the need for more young talent in the pipeline.

“I go to these job sites, and I see our own crew, or I see our subcontractors, and … some of these guys I’ve known for 35 years,” he told BusinessWest. “I’d say probably 70% of the guys in the workforce are closer to retirement age than not. So it’s extremely important that we get some of the younger people in.”

He said the industry has been hurt over the past couple decades by a prevalent message that young people need to go to college to be successful. In fact, Massachusetts ranks among the top states in sending high-school graduates to college. At the same time, industrial-arts programs have been cut from public-school curricula, due to liability, budget cuts, or other factors, Mercieri noted.

But there is a pitch to be made, at a time when families are growing more concerned with crushing debt coming out of college, that careers in construction are attainable, with a clear path to growth, without much, if any, debt.

“Ninety percent of it is showing up every day; 10% is paying attention and learning,” he said, citing the example of someone who wants to specialize in carpentry but might not have the skills for a specific niche right off the bat. “There are multiple facets in carpentry. And you may be better at one or the other. Maybe you’re good at rough carpentry, and maybe you’re not as good at finished carpentry. But over time, you’re going to be very experienced — and you’ll probably be good at both.”

 

From the Ground Up

Mercieri knows what he’s talking about; he fell into construction at a young age, doing work for a friend’s father who owned a construction business.

“Basically, I was the young kid, and I got to carry all the tools for the tradespeople. I learned the electrical trade, plumbing, carpentry. I got my hands and feet wet being a helper. Then, over the years, it kind of grew on me, and the rest is history.”

He’s been in the field long enough to experience the transition from bid requests via phone calls and snail mail to digital platforms.

“And you think about the field now. Back then, there were no cell phones; there were no iPads. If something came up, a guy would run to a phone booth, or we’d set up landlines with a trailer, and they’d be calling the office. Now our guys in the field have iPads; as soon as we receive something here in the office, it goes right upstream, and they receive it out in the field.”

It’s just one of many changes Mercieri has seen over his decades in construction. And with one more year almost in the books, he’s feeling optimistic about 2024.

“We’ve got a fair amount on the books,” he told BusinessWest. “Some of the jobs that we’re doing now will run into 2024. The bidding market seems very strong. So we think we’re going to do pretty well.”

Businesses Are Learning That Effective DEI Efforts Require Cultural Change

By
Shannon Rudder
Special Coverage Work/Life Balance

More Than a Seminar

 

Shannon Rudder

Shannon Rudder says achieving real DEI in a company begins with creating a culture of authenticity and trust.

 

 

Shannon Rudder remembers her “bad boss.” And she never wanted to be one.

“What that bad boss did, what stuck out for me, was that everybody had to cater to how he led,” she said, adding that he believed that was how to maintain a bias-free workplace. Unfortunately, that philosophy can be incompatible with an equitable workplace.

“If I’m a single mom, maybe I can meet the deadlines, but I can’t do it in the same exact way as someone who doesn’t have kids, or has kids that are grown, right?” said Rudder, president and CEO of Martin Luther King Jr. Family Services in Springfield. “So in the most rudimentary sense, when you take the -isms and race and all that stuff out of it, that’s equity.”

And it’s a concept many businesses neglect when they talk about diversity, equity, and inclusion (DEI) programs, Rudder explained. They’re focused on a diverse workplace, but neglect to create the sort of culture where everyone is seen for their unique makeup and treated not equally, but equitably.

Colleen Holmes

Colleen Holmes

“We take a whole lot of pride and pleasure in working with folks as the individuals they are. That means that we look at the whole person and not one single aspect of their identity, and that’s what DEI is about.”

She cited a cartoon often used to express the point (see below). It pictures three boys trying to watch a ballgame from behind a fence. The first panel has each standing on a single box; though they’re being treated equally, the shortest boy still can’t see the game. The second panel, by moving those boxes around, demonstrates equity — now everyone can clearly see over the fence.

The barriers are different for each member of an organization, Rudder said, and so are the proverbial ‘boxes’ they might need to stand on to do their jobs effectively. (To take it a step further, the cartoon sometimes includes a third panel, labeled ‘liberation,’ with the fence removed completely.)

“The CEO of a nonprofit is not the same as a president or CEO of a Fortune 500 company, but conceptually, we can’t sit in our positions of power and think we know what everyone’s barriers are,” she added. “I’ve got to like actually talk to people to figure out what the barriers are. So it’s about the relationships.”

Interaction Institute for Social Change / Artist: Angus Maguire

It’s also about honest discussions about privilege and internalized biases and weaving equity into every corner of the organization — and that’s not something that can be achieved with a one-off professional-development seminar on DEI.

“You’ve got to get to the heart of why there are biases, why folks aren’t being productive working together,” Rudder said. “We’re all socialized very differently. So we need to create environments where folks feel comfortable and they trust each other. You don’t want somebody to feel tokenized; you want to be able to create that authenticity, that trust, so then you can begin to understand what the real barriers are.”

Colleen Holmes understands this concept. As president and CEO of Viability Inc. in Springfield, which provides vocational training, job placement, and other supports for individuals with disabilities, she’s worked with employer partners to help them understand how a workplace can benefit from workers from all backgrounds and all abilities.

“All the services we offer are around folks having the opportunity and support to be able to build their skills and attain things that are important and meaningful to them in their lives,” she told BusinessWest. “Everything we do is very specifically geared toward helping individuals find their pathway to thriving beyond whatever their limits are. And for individuals with disabilities, those limits are considerable.”

Trevor Brice

Trevor Brice

“Is this person better-qualified? Just give justification for the decision in case you’re challenged down the road.”

But they can be overcome — if an employer is committed to equity.

“We take a whole lot of pride and pleasure in working with folks as the individuals they are. That means that we look at the whole person and not one single aspect of their identity, and that’s what DEI is about,” Holmes explained. “The aspects of our identity are layered and complex, and that’s what makes us interesting people.”

The said the word ‘accommodation’ carries some baggage because people think it’s a one-way street — that the employer has to accommodate the employee, but isn’t going to benefit from that employee beyond checking a DEI box.

“In fact, when employers learn how to think differently in their approaches to getting business objectives met, they have more humanity in their company,” she said, adding that employers who understand this — who are willing to cultivate not only a diverse workforce, but an equitable, inclusive one — have a leg up.

 

Questions Around Diversity

The ‘diversity’ piece of DEI has been the source of much discussion lately, as employers have grappled with whether efforts to build a racially (and in other ways) diverse workplace will run afoul of federal law, especially after the U.S. Supreme Court struck down affirmative action in college admissions this past June.

“They didn’t directly speak to private employers; it only applies to colleges and universities,” said Trevor Brice, an attorney with the Royal Law Firm in Springfield, adding, however, that there could be ripple effects. “I think the implications of the Harvard and North Carolina ruling go more to reverse-discrimination suits, people in majority groups suing over being given unfavorable treatment in relation to minority groups because of affirmative-action or DEI programs.”

To be clear, he added, hiring and firing employees based on their status in protective classes has never been allowed. “What’s almost inevitable is there are going to be challenges to employers based on these cases now.”

Dan Moriarty

Dan Moriarty

“We have a long way to go with it, but we’re trying to build something. We want to make meaningful progress — not just check a box, but make a difference.”

Mary Jo Kennedy, partner and chair of the Employment Law practice at Bulkley Richardson in Springfield, agreed that the SCOTUS ruling has no immediate impact on the legal standards that govern private employers’ DEI or affirmative-action programs, noting, like Brice, the existing prohibition against making employment decisions solely based on a person’s protected characteristics, like race or gender.

“But there is the potential that we may see more reverse-discrimination cases,” she added, before listing several steps employers can take to promote diversity within the bounds of the law:

• Avoid considering race as a basis for employment decisions or practices in a way that could be seen as granting race-based preferences;

• Review any DEI policies or programs for compliance with federal and state laws;

• Understand that it’s OK to prioritize diversity and inclusion but not OK to use race- or gender-based quotas;

• Broaden the use of the term ‘diversity,’ understanding that it’s more than just race and gender; and

• Review the company website and other public-facing documents and internal DEI materials for compliance with federal and state laws prohibiting discrimination.

Employers can also protect themselves against reverse-discrimination cases by carefully documenting the reasons behind every hiring and promotion decision. In other words, it makes sense to cast a wide net to promote a diverse applicant base, but make sure there’s a business case for each decision, and “document, document, document,” Brice said.

“Why are you making this decision? Is it solely due to race or other protected characteristics? Then it’s probably not going to stand up to a legal challenge. But high GPA, work history, things like that are fine. So, is this person better-qualified? Just give justification for the decision in case you’re challenged down the road.”

Employment-law firms already see plenty of wrongful-termination cases, he added, and there’s a feeling that the June SCOTUS decision will embolden more of them, even though that ruling applies only to higher education. “More needs to be seen. There hasn’t been a legal challenge yet, so there’s no guidance yet.”

 

Making Meaningful Progress

Monson Savings Bank President Dan Moriarty has been actively been involved in DEI strategy over the past year or so, not only at his own institution, but through his co-leadership of an executive council established by the Massachusetts Bankers Assoc. to promote DEI efforts across member institutions.

“Every individual and every organization is on a different path along the way to being more diverse, equitable, and inclusive in their organization,” he said. “We have a DEI committee here at the bank, and we’re trying to adopt best practices from the Mass Bankers Association for advancing our DEI program.”

That process toward a level playing field begins with understanding the dynamics of DEI and the barriers and biases that hinder it, he noted, adding that he and two other MSB leaders recently attended a seminar at the Healing Racism Institute of Pioneer Valley. “That was phenomenal. Just the awareness and deep understanding was very impactful for me personally and professionally. We all have to do more.”

“Our corporate counterparts — and I get why they do it — focus on diversity because that’s a tangible way to demonstrate, ‘we’ve got X percentage of women, we’ve got X percentage that identify as able-bodied or people of color,’ all those identities. I get why diversity comes first. But for me, it’s really centered on equity.”

Adopting some best practices recommended by Mass Bankers, Monson Savings has created a DEI commitment statement, developed and implemented a DEI program that continues to evolve, provided DEI training to board members and employees, identified and monitored key performance metrics, and conducted periodic self-assessments of the program.

In addition, he said, the bank has reviewed numerous documents, including its strategic plan, along with communications, processes, and facilities, to ensure that potential barriers are identified and removed and that DEI expectations are reflected, while also conducting outreach and expanding the bank’s relationships with key community members and organizations.

“We have a long way to go with it, but we’re trying to build something. We want to make meaningful progress — not just check a box, but make a difference,” Moriarty said. “People want to do the right thing, but they have to educate themselves and really make a concerted effort to be able to make the change. It’s not just acknowledging we need more diversity, equity, and inclusion, but we also have to take actual steps to get us to a better place.”

Viability has seen its employer partners — more than 800 of them nationwide — find that better place.

“Some employers are looking to live a philosophy of the organization around diversity, equity, and inclusion because it’s the right thing to do,” Holmes said. “And there is data out there that shows that, if companies have accessible and welcoming environments for individuals with disabilities, consumers are more likely to shop there. And this is something businesses and employers have taken notice of.

“DEI is really a no-brainer,” she added. “But it does require a cultural change within an organization.”

 

The Rest of the Story

“Injustice anywhere is a threat to justice everywhere.”

That’s one of Martin Luther King Jr.’s most popular quotes; just about everyone has heard it. But far fewer, Rudder said, know the rest of the quote, the words King said directly after:

“We are caught in an inescapable network of mutuality, tied in a single garment of destiny. Whatever affects one directly, affects all indirectly.”

“That’s the nutshell of how I approach the work,” she added. “Our corporate counterparts — and I get why they do it — focus on diversity because that’s a tangible way to demonstrate, ‘we’ve got X percentage of women, we’ve got X percentage that identify as able-bodied or people of color,’ all those identities. I get why diversity comes first. But for me, it’s really centered on equity.”

Rudder said she practices ‘culture humility,’ which is a commitment to constant self-evaluation by which people not only learn to understand other cultures, but also critically examine their own — and understand the privileges they enjoy.

“If we’re going to aim to be centered in equity, we have to first understand where our privilege is,” she said. “And that goes back to Dr. King’s quote; we are all mutually interconnected. It’s a journey — it’s not just, ‘let’s do this program, and let’s check the boxes.’ We’ve got to weave this into the very fabric of who we are as an organization, as a corporation.”

North Adams Builds on Growing Momentum

By
MCLA President James Birge
Community Spotlight Special Coverage

Community Spotlight

MCLA President James Birge

MCLA President James Birge cuts the ribbon at the official launch of the school’s new nursing program.

 

Jennifer Macksey grew up North Adams, and she’s seen some profound changes in her 50 years — and from many perspectives.

As a young girl, she remembers Thursday nights downtown, which would be bustling as the thousands of employees at nearby Sprague Electric would be out spending their paychecks in the stores, like the one owned by her parents, and restaurants along Main Street and connecting corridors. She also remembers how the landscape changed dramatically, and the vibrancy downtown all but disappeared overnight, after Sprague closed its doors in 1985.

Later, while serving in several positions in City Hall, including chief financial officer and treasurer and collector, and also at the nearby Massachusetts College of Liberal Arts (MCLA) and Southern Vermont College, and then as assistant superintendent of the Northern Berkshire Regional School District, she saw the city’s economy struggle as it also evolved, from one dominated by manufacturing to one centered on tourism and the arts, a shift exemplified, in dramatic fashion, by the transformation of the former Sprague Electric complex into MASS MoCA, the nation’s largest museum of contemporary art, which opened its doors in 1999.

Today, Macksey is mayor of the city, a post she has long coveted (more on that later), and is thus in a position to not only observe, but also shape the ongoing evolution of this city of nearly 13,000.

She reports progress on several fronts, from new stores downtown to signs of development at the long-vacant former TD Bank building on Main Street; from a cannabis-cultivation facility in the Hardman Industrial Park to a small but quite significant rise in population — part of a countywide phenomenon involving residents of large metro centers leaving for the Berkshires, where many of them are working remotely.

Jennifer Macksey

Jennifer Macksey

“We’ve brought a lot of new people into the community, but we’re also focused on getting businesses in here.”

“I’m amazed at the people who are buying property here in North Adams,” Macksey said. “We’re seeing a lot of people who are leaving larger cities and coming here to work remotely, and we’re seeing out-of-town investors buying up property, whether it be for long-term or short-term rental. So our population is starting to go up a bit.”

James Birge, long-time president of MCLA and another native of Berkshire County (he grew up in Lee), has also seen a number of signs of progress, both across the county and in North Adams. In addition to meeting its mission of providing a quality liberal-arts education and enabling students from low-income families to live “an elevated life,” as he calls it, MCLA is helping to fuel a changing Berkshires economy by providing qualified workers and also adding new programs to meet recognized need, such as its new nursing-degree program.

“While 40% of our students come from Berkshire County, 50% of our students who graduate stay in Berkshire County,” he said. “So we’re contributing to the brain gain of Berkshire County.”

The nursing program, initiated this fall, was launched in response to a request from Berkshire Health Systems to help meet an urgent need to put more nurses into the pipeline.

“We thought, ‘here is an opportunity where we can develop an academic program that would be in demand and be responsive to the needs of our community,” Birge said, adding that the program started with 20 students this fall and is expected to ultimately grow to 110-120 students. “This is the fundamental, historic purpose of public higher education — to respond to the needs of the community.”

For this, the latest installment of its Community Spotlight series, BusinessWest takes an in-depth look at North Adams and the many developing stories there.

 

 

Taking the Lead

While growing up in North Adams, Macksey said, her parents always stressed the importance of both giving back and getting involved, qualities she has embraced her whole life.

This passion, coupled with a desire to lead change in a community she said was still struggling in many ways, prompted her to run for mayor in 2021 — and to seek re-election this fall.

“I always wanted to be mayor,” she told BusinessWest. “When I left City Hall, I knew that I would come back someday, but I always said I would come back to the corner office, and that’s what I did. I’m very interested in keeping North Adams moving forward.”

Her focus is broad and covers many issues, from education to public safety, but especially economic development, she said, adding that, like all communities in the Berkshires and beyond, the most pressing need is jobs.

“We’ve brought a lot of new people into the community, but we’re also focused on getting businesses in here, and that is really the charge of my next two years in office, to build out some economic-development plans and to sell North Adams more than it has been.

“North Adams is sold on its beauty and its natural resources, but there are a lot of other things to offer,” she went on. “I’m very focused on the buildings that we do have that are empty and our industrial park and exploring opportunities to bring in some light industry.”

The Hardman Industrial Park recently became home to the Temescal Wellness cannabis growing facility, in a facility that formerly housed Crane Stationery. The facility employs between 75 to 100 people and is thus an important source of new jobs and one of many investments that have taken place in North Adams.

Others include ongoing investment in the Porches Inn at MASS MoCA on River Street and also in the Hotel Downstreet on Main Street — facilities that are catering to the steady volumes of visitors to North Adams, which has increasingly become a destination in recent years — as well as redevelopment of the former Johnson School into much-needed housing.

North Adams at a Glance

Year Incorporated: 1878
Population: 12,961
Area: 20.6 square miles
County: Berkshire
Residential Tax Rate: $17.67
Commercial Tax Rate: $37.60
Median Household Income: $35,020
Family Household Income: $57,522
Type of government: Mayor; City Council
Largest Employers: BFAIR Inc.; Massachusetts College of Liberal Arts
* Latest information available

In the downtown, most of the storefronts are now occupied, Macksey said, and the former TD Bank facility has been acquired, and redevelopment plans are being blueprinted.

“Our downtown is pretty much full,” she noted. “There were many years when it was empty, and I really applaud the owners of those buildings for hanging in there.”

But there is considerable work to be done, she added. “We’ve got a lot of things going on, but we really need to provide more jobs for our workforce here. And we hope to develop some economic-development plans that will bring some people into the city.”

Creating jobs is a process, she noted, one that involves collaboration and partnerships with business, the education sector, and workforce-development agencies, as well as that notion of more aggressively selling the city and its many types of assets and generating new investments in the community.

“We need to create some jobs that provide some on-the-job training,” she said, citing Temescal Wellness as one example of such an employer. “We also need to be collaborating with places like MassHire and other groups to create opportunities where people can learn a trade as they work.

“And we also need to be aggressive in cultivating a community, even in our high school, of students who want to work here in North Adams, be it in a trade or in an administrative position,” Macksey went on. “But most importantly, we’re looking to work with businesses that are sensitive to hiring people here in North Adams.”

 

Class Act

Birge told BusinessWest that he thought MCLA might fall a little in the annual U.S. News & World Report ranking on the nation’s public liberal-arts colleges, a category that includes the service academies. But it didn’t.

Instead, it held its place at number 7 — this was the third year in a row it finished in that spot and the ninth year in a row it has cracked the top 10, out of roughly 500 institutions — a measure, he said, of not only the school’s commitment to excellence, but its ability to consistently deliver on its commitment to providing a quality liberal-arts education.

As proud as Birge might be of this ranking — and he is quite proud — he is even more satisfied with the school’s rankings on U.S. News & World Report’s listing of top performers when it comes to social mobility, a category the publication initiated in 2019. This is a measure of how well institutions graduate students who receive federal Pell grants, typically awarded to students whose families earn less than $50,000, though most Pell Grant money goes to families with income below $20,000.

In this category, MCLA ranked first in the state and second in the country.

“I like this ranking a little bit more, because we’re meeting our mission — we have a mission of access,” he explained. “We want students who may not be able to afford to go to other institutions to come here and get an outstanding education and then go off and have a life that they wouldn’t have if they didn’t come to us.

“I think that’s a more important measure; we’re the highest-ranked public institution in Massachusetts and the second-highest in the nation, and we’re really proud of that,” he went on, adding that one-third of the school’s students come from families earning less than $30,000 per year, and roughly 40% of them are first-generation college students.

“The average starting salary for an MCLA alum is $46,000,” he went on. “Hundreds of students are graduating and making an average salary of $46,000, and they’re coming from families that made less than $30,000. We’re breaking the cycle of poverty for hundreds of kids in four years — we think that’s a pretty noble mission for a public higher-education institution.”

Overall, MCLA is seeing a surge in enrollment due to a roughly 15% increase among first-year students (total enrollment is largely flat), and Birge attributes this to the value the school presents at a time when value has become an ever-more-important factor among students and their parents. Indeed, one can graduate from MCLA with a fraction of the debt they may assume if they were to attend a private liberal-arts college, he said.

While on the subject of value, Birge said a liberal-arts education still holds plenty of value in this job market and in general, despite growing rhetoric questioning the relative worth of a liberal-arts degree, and some colleges and universities — Simmons and Lasell are among the latest to do so — cutting liberal-arts majors, including history, modern languages, philosophy, and literature because of low enrollment.

“I think those institutions that are cutting liberal-arts programs are not being very visionary, and I think they’re cutting off their nose to spite their face,” he added “In our world today, even more than ever, we need people educated in the liberal-arts tradition. We need people who can understand different perspectives and look at things through different lenses.”

Especially in a changing Berkshire County, he noted.

“The economy has changed; it used to be an industrial economy, and now it’s more of a creative economy, across the county,” Birge said. “And I think that has breathed life back into a lot of our communities, including North Adams. It’s a vibrant moment in the history of Berkshire County, and we try to be as participatory in that as we can.”

BusinessTalk with Carl Mercieri, vice president of Marois Construction

By
Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 182: October 9, 2023

Joe Bednar Interviews Carl Mercieri, vice president of Marois Construction

Carl Mercieri

The 50th anniversary of any business is a notable milestone, and Marois Construction not only celebrated that achievement last year, but recorded one of its strongest years in memory. The firm’s work — in a variety of sectors, both public and private — continues steadily in 2023, despite ongoing industry challenges ranging from inflation to supply uncertainty; from workforce shortages to a lot of wet weather in Western Mass. On the next episode of BusinessTalk, Carl Mercieri, vice president of the South Hadley-based company, talks with BusinessWest Editor Joe Bednar about how Marois has navigated these challenges while continuing to make its mark on the region in its second half-century. It’s must listening, so tune in to BusinessTalk, a podcast presented by BusinessWest and sponsored by PeoplesBank.

Sponsored by:

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BusinessTalk with Dr. Mark Kenton, chief of Emergency Medicine at Mercy Medical Center

By
Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 181: October 2, 2023

George Interviews Dr. Mark Kenton, chief of Emergency Medicine at Mercy Medical Center

Dr. Mark Kenton has seen it all during a long career in emergency medicine, from the fast pace and constant challenge of daily cases to a pandemic that sorely tested emergency departments in unprecedented ways. Through all of it, he says effective care, especially of individuals often facing the worst days of their lives, begins with listening and forging personal connections with patients and their families. On the next episode of BusinessTalk, Kenton, chief of Emergency Medicine at Mercy Medical Center, talks with BusinessWest Editor Joe Bednar about his important work — both inside the ER and often far outside it as an outspoken advocate — for which he has been honored as one of BusinessWest‘s Healthcare Heroes for 2023. It’s must listening, so tune in to BusinessTalk, a podcast presented by BusinessWest and sponsored by PeoplesBank.

Sponsored by:

Also Available On

White Hut Brand Expands to Holyoke, with Plans to Continue Scaling Up

By
Peter Picknelly, left, and Edison Yee
Features Special Coverage

Fried and True

Peter Picknelly, left, and Edison Yee

Peter Picknelly, left, and Edison Yee, two of the many partners involved with the White Hut location in Holyoke.

When asked about where they might take the White Hut brand — and when, both Edison Yee and Peter Picknelly took long pauses and then looked at each other as if to say, ‘you first.’

They did so to indicate a few things — first, that they’ve obviously been thinking long and hard about that question, and second … they don’t really know the answer yet.

What they do know is that they will bring the concept beyond Memorial Avenue in West Springfield, the location that was rescued in 2020 by Picknelly, chairman of Peter Pan Bus Lines; Andy Yee, Edison’s brother; and others within the Bean Restaurant Group after founding owners the Barkett family announced it would close. And also beyond 825 Hampden St. in Holyoke, the location — a renovated former PeoplesBank branch — that opened last month.

“Our goal is to build a microbrand from this White Hut concept,” he said, using that term to describe brands with up to 10 locations, adding that locations are being scouted in Westfield and other communities, and if all goes well in Holyoke, there could easily be another location within a year.

Picknelly concurred. “We believe the White Hut is a brand that’s scalable; we’ve had overwhelming success in West Springfield — our customer count continues to grow there — and we think Holyoke is a great location,” he said. “This a solid brand, and we want to expand it out strategically.”

But both said that, at the moment, they and several co-owners in the Paper City venture, including Holyoke natives Jack Ferriter and Mark Cutting, are hard-focused on that location, the success of which might go a long way toward determining where and when this iconic (yes, that word fits here) brand and its red-and-white color scheme might next be seen.

Nathan Yee, director of Hospitality for the Bean Restaurant Group and part of the proverbial next generation of leadership at the company, believes it will do quite well.

“Our goal is to build a microbrand from this White Hut concept.”

Those involved spent considerable time scouting locations, he said, and eventually zeroed in on the Hampden Street location, which lies on a well-traveled road just a few hundred yards from an I-91 exit.

Beyond location, this site offers … well, everything that has made the White Hut brand iconic — its famous hamburgers, hot dogs, fried onions, shakes, and more — as well as new additions, including a salute to Holyoke: a breakfast sandwich called the Paper City Special, containing a scrambled egg with sausage, hash brown, American cheese, and fried onions on a Venetian water roll.

There are other new wrinkles as well, including a self-ordering kiosk for those who prefer that option, as well as a pickup option by which employees bring the customer’s order directly to their car.

Nick Yee cuts a ceremonial ribbon

Nick Yee cuts a ceremonial ribbon of hot dogs at the grand opening of the Holyoke White Hut last month.

In short, the ownership group is taking a brand that has a storied past and a rich history and bringing it into the future — changing what should be changed, and not changing anything that shouldn’t be changed, like those fried onions.

For this issue, BusinessWest takes an in-depth look at the institution that is the White Hut, the long-planned move into Holyoke, and those still-evolving plans to bring the brand elsewhere within the 413 — and likely beyond.

 

Relishing the Possibilities

As he talked with BusinessWest in mid-September, Edison Yee had a lot on his plate — and yes, that’s an industry term, sort of.

The Big E was going to start in a few days, and Yee and many others at the Bean Restaurant Group had considerable prep work to do get ready; the group has several locations at the fair, including the White Hut, the Wurst House, and a new addition to the portfolio, a ‘Harpoon Beer hut.’

“We sell a lot of food and lot of beer,” he said, adding that the company probably has 100 or more seasonal employees working at the fair, which has been an ever-increasing part of the business plan for the group since it first started taking part eight years ago.

Meanwhile, Oktoberfest, a huge, nearly month-long celebration at the Student Prince, is coming up fast (Oct. 8 is the official start date), and Yee was deep into the planning stages for that annual happening. And then, there’s ongoing planning and the start of work at the restaurant that will become a linchpin of the redevelopment of the Court Square Hotel on Elm Street in Springfield, another collaboration between Picknelly and the Bean Group.

But on this day, and the days before, the main focus was on the Holyoke White Hut location and making sure everything was in order for the grand opening coming up the next morning. This was an event that was maybe two years in the making, said Yee and Picknelly, noting that, not long after the West Springfield location had been saved and was successfully navigating its way through COVID, talk began to turn to where this iconic brand might go next.

And it wasn’t long at all before the focus turned to the Paper City.

But before we explore this move to Holyoke, we need some background, and some perspective on both the brand and the location in West Springfield, which, to many, has achieved landmark status, figuratively if not literally.

Our story begins in 1939, when Edward Barkett opened a small restaurant on Memorial Avenue and decided to call it the White Hut because that was the principal color.

Suceeding generations of the Barkett family owned and operated the restaurant and eventually took the brand beyond West Springfield — to Amherst, in a venture that met with only limited success, in part, Picknelly believes, because the location was not highly visible.

And while the brand is famous for the loyalty exhibited by its regulars, location and visibility are keys to the success of any restaurant, he went on.

Fast-forwarding a little, E.J. Barkett (Edward’s grandson) announced rather abruptly in 2020 that White Hut would close its doors. Picknelly and Andy Yee, both to be counted as Hut regulars, as well as serial entrepreneurs and part of the group that rescued the Student Prince restaurant in 2015 when its closure seemed imminent, stepped into the breach and saved the White Hut.

And they did so under extreme circumstances. Indeed, that rescue came at the height of COVID, when that restaurant, like all others, had to find ways to do business while also keeping people safe. It already had effective takeout service, said Picknelly, adding that this quality was one of many that enabled it to persevere during those trying times.

Another quality, obviously, was the food itself, he said, adding that another ingredient in the recipe for success was simply not to change much of anything that had made the Hut such a fan favorite.

Such diligence has been rewarded with rankings on a number of ‘best burger’ lists. In 2021, for example, White Hut’s cheeseburger with grilled onions was named the best burger in Massachusetts by Thrillist, and it has been ranked among the best burgers in the country. The Hut was profiled in USA Today in 2019, which said everything about the brand is “frozen in time,” and it’s been included by the Wall Street Journal in its “Essential Guide to America’s Best Burgers.”

That success begs the obvious question — where can this brand go? That query refers to everything from geography to the size of what would have to be called an emerging chain.

 

A Side of Entrepreneurship

The answer to that question begins in the Paper City and the opening of the Hampden Street location, which provides evidence that everything is no longer entirely frozen in time, as we’ll see.

“Holyoke has been on the radar for our group for a long time now,” Edison Yee said, adding that several potential sites were considered before the Hampden Street location, one strongly favored by his brother, Nick Yee, the group’s principal managing partner, became the focus of attention.

the latest White Hut location in Holyoke

From left, Bryan Graham (culinary director and partner), Nick Yee, Peter Picknelly, Edison Yee, and Nate Yee stand in front of the latest White Hut location in Holyoke.

“The traffic counts are great,” he said. “And, growing up in South Hadley, we knew that this was the main street to get onto I-91; you have all the traffic that comes from South Hadley, Granby, parts of Chicopee, and, of course, Holyoke, that are filtering through this road.”

Picknelly agreed, and noted that the traffic count is actually higher on Hampden Street than it is on Memorial Avenue in West Springfield.

Beyond steady traffic, the location provides more convenience to those who travel down I-91, Route 5, or other roads to get to the West Springfield location (and there are many in that category) while also introducing the brand to new audiences.

“We think Holyoke is a great location,” Picknelly said. “Our brand is still strong here, yet it’s far enough away that we won’t be competing against ourselves, and our customers from Holyoke, Northampton, and Granby won’t have to travel as far — that’s the essence of it.”

And while the location is expected to draw people from several area communities and, its owners presume, travelers on I-91, it is a neighborhood restaurant, one that will in some respects replace another iconic eatery, Mel’s Restaurant, which closed recently, just a few hundred feet away.

The location will offer the same menu as the one in West Springfield — and essentially the same food the Hut has offered since 1939 — but with some of those new amenities, such as the self-ordering kiosk, said Nathan Yee, which will bring another layer of convenience to customers.

“With each unit, we’ve identified some of the operational areas that we can improve on, and that’s what we’ve done with this location,” he said. “We’ve added a few new features to make it more customer-friendly.”

Renovation of the former bank branch took more than a year, he noted, and an investment, beyond the purchase of the property, of more than $1 million.

And this may the first of several initiatives to bring the White Hut brand to different cities, towns, and markets, said Picknelly and Edison Yee, noting, again, that Holyoke will be a barometer of sorts for how well the brand may ultimately travel.

“Our ultimate goal is to expand the brand,” Yee said. “This is a great test for us, being in Holyoke, and we feel strongly that, if we can get this unit to operate similarly to West Springfield in terms of metrics, we’re eager to look for another spot.”

Picknelly agreed, noting that expansion, either through owner-operated locations, such as those in Holyoke and West Springfield, or perhaps franchising, is likely if not inevitable.

“There are restaurant groups in Connecticut that have contacted us and want to franchise,” he said. “We want to expand this on our own first; we think it’s really scalable — this is our first venture to do that. Once this gets up and running, I think you’ll see the White Hut brand all over the Northeast.”

“Our ultimate goal is to expand the brand. This is a great test for us, being in Holyoke, and we feel strongly that, if we can get this unit to operate similarly to West Springfield in terms of metrics, we’re eager to look for another spot.”

Elaborating, he said could envision scenarios where there are both owner-operated locations and franchises, and there are plenty of successful models of such operations, including national brands such as KFC, Burger King, and others.

 

Food for Thought

Summing up the current state of this brand, Picknelly said it’s “one that the Barkett family built and the Yee family made better.”

Where can it go beyond West Springfield and Holyoke? Only time will tell, but it’s safe to assume that expansion will continue across Western Mass. and perhaps beyond. A brand that’s been called ‘simple,’ ‘tried and true,’ and, yes, ‘frozen in time’ will continue to be all those things.

But time certainly won’t stand still for the White Hut and its owners.

What’s New in Tax Laws for Individuals and Businesses?

By Contributor
Accounting and Tax Planning Special Coverage

Rolling with the Changes

By Daniel Eger and Cindy Gonzalez

Tax laws are like a constantly shifting landscape, subject to periodic changes that can significantly impact your financial bottom line. Whether you’re an individual taxpayer striving to maximize deductions or a business owner who wants to optimize your financial strategies, staying informed about the latest tax-law changes is paramount.

Daniel Eger

Daniel Eger

Cindy Gonzalez

Cindy Gonzalez

In this ever-evolving tax environment, we’ll explore the essential updates that individuals and businesses need to be aware of to navigate the new tax frontier effectively. We’ll dive into the critical modifications that may influence your financial planning and tax strategies in the coming year.

 

TAX-LAW CHANGES IMPACTING INDIVIDUALS

In 2023, several significant adjustments have been made to tax laws that individuals should be aware of. These changes encompass a wide range of topics, from energy credits to retirement contributions, interest rates, and tax brackets. Let’s delve into some of the key changes that may impact your financial planning.

 

Residential Energy Credits

For individuals looking to reduce their environmental footprint and lower their tax liabilities, residential energy credits are worth exploring. These credits aim to incentivize the adoption of clean and energy-efficient technologies in homes. A notable change for 2023 is the Clean Vehicle credits, which are now effective after April 18. These credits apply to new, used, or commercial vehicles, with qualifying requirements for sellers, dealers, and manufacturers.

 

Interest-rate Changes for Q4 Payments

Starting on Oct. 1, 2023, significant adjustments will be made to interest rates for tax payments. In cases of overpayments, where individuals have paid more than the amount owed, the interest rate will be set at 8%. In instances of underpayments, where taxes owed have not been fully paid, individuals will be subject to an 8% interest rate.

 

Contributions to Retirement Savings

In an effort to help individuals save for their retirement, the IRS has raised the contribution limits for 401(k) and IRA plans in 2023. If you contribute to a 401(k) or 403(b), you can now put in up to $22,500 a year, an increase from $20,500. Those age 50 or older can make an additional catch-up contribution of $7,500. Similarly, traditional and Roth IRA contributors can now contribute up to $6,500 (up from $6,000), with an extra $1,000 catch-up contribution available for those age 50 and older.

“Whether you’re an individual taxpayer striving to maximize deductions or a business owner who wants to optimize your financial strategies, staying informed about the latest tax-law changes is paramount.”

Enhanced IRA Contribution Limits

Traditionally, there have always been strict constraints on contributions to both traditional and Roth IRAs. For the majority of individuals, the contribution ceiling stood at $6,000. However, for those age 50 and above, there was the opportunity to contribute an additional $1,000 as catch-up contributions, bringing the total to $7,000.

The exciting news for 2023 is a boost in these limits by $500, allowing Americans to now contribute up to $6,500 to their IRA. For individuals age 50 and older, this figure escalates to $7,500.

Increased Contributions to Employer-sponsored Retirement Plans

Following a similar upward trajectory, the contribution limits for employer-sponsored retirement plans have also experienced a positive adjustment. In 2022, the threshold for employee contributions stood at $20,500. However, in 2023, this limit has risen by $2,000, providing a new maximum of $22,500. For those eligible for catch-up contributions, the prospects for bolstering retirement savings have become even more enticing, with an elevated contribution limit of $30,000.

It’s important to note that, if you participate in multiple workplace retirement plans, the limitations encompass all salary deferrals and total contributions across these plans. Contributions made to other types of accounts, such as an IRA, remain separate and do not impact these thresholds. These enhanced contribution limits offer individuals and employees greater flexibility and opportunities to secure their financial future.

Health Savings Account Contribution Limits

Health savings accounts (HSAs) have become increasingly popular for managing medical expenses and as an investment vehicle. In 2023, individuals will be allowed to contribute an additional $200 per year to their HSAs, raising the maximum contribution limit to $3,850. For families, the threshold for coverage will also increase by $450, reaching a maximum of $7,750 for the fiscal year. Keep in mind that you must meet the minimum deductibles to qualify for an HSA plan, which are $1,500 for individuals and $3,000 for families.

Tax Brackets for 2023

Lastly, it’s essential to be aware of the changes in tax brackets for 2023. While there are still seven tax rates ranging from 10% to 37%, the income thresholds for these brackets have been adjusted upward by about 7% from 2022. This adjustment reflects the impact of record-high inflation, potentially placing some individuals in a lower tax bracket than in previous years.

These changes underscore the importance of staying informed about tax-law updates to make informed financial decisions and optimize your tax-planning strategy. Be sure to consult with a tax professional or financial advisor to understand how these changes may affect your unique financial situation.

 

TAX-LAW CHANGES IMPACTING BUSINESSES AND INDIVIDUALS REPORTING ON SCHEDULE C

In the dynamic landscape of tax laws, staying informed about changes that affect both businesses and individuals reporting their income and expenses on Schedule C is of paramount importance. In recent years, several noteworthy adjustments have been made, significantly impacting the way deductions are calculated, particularly for expenses like Section 179 deductions, bonus depreciation, and meals and entertainment. Here, we delve into these pivotal changes.

Section 179 Deduction Limits

One of the cornerstones of tax planning for businesses has been the Section 179 deduction. This deduction enables businesses to write off the cost of qualifying property and equipment in the year they are placed in service, rather than depreciating them over time.

In 2023, the Section 179 deduction limit has been raised to a generous $1,160,100 for property used 50% or more for business purposes. This marks an increase of $80,000 from the previous year. This change empowers businesses to invest in capital assets and equipment while enjoying substantial tax savings.

“While there are still seven tax rates ranging from 10% to 37%, the income thresholds for these brackets have been adjusted upward by about 7% from 2022. This adjustment reflects the impact of record-high inflation, potentially placing some individuals in a lower tax bracket than in previous years.”

Meals Deductions

The tax treatment of meals expenses has witnessed a notable transformation, with implications for businesses and individuals alike. During the height of the COVID-19 pandemic in 2021 and 2022, the IRS allowed a temporary 100% deduction for such expenses to provide economic relief and support the struggling hospitality industry.

However, starting in 2023, there has been a shift in the deductibility of meal expenses. Any deductible meal is now subject to a 50% deduction under the guidelines outlined in Publication 463. This change underscores the need for businesses and individuals to carefully document and categorize their expenses and adhere to the new rules governing these deductions.

 

Interest-rate Changes

Starting on Oct. 1, 2023, significant adjustments will be made to interest rates for tax payments. Corporations will experience a slightly different rate structure than individuals. For overpayments exceeding $10,000, the interest rate on the excess amount will be reduced to 5.5%. In contrast, large corporate underpayments, representing taxes owed but not fully paid, will incur a higher 10% interest rate. These adjustments in interest rates aim to ensure fairness and compliance within the tax-payment system for both individuals and corporations.

 

Changes to Bonus Depreciation

The window of opportunity for fully benefiting from one of the Tax Cuts and Jobs Act’s (TCJA) most significant provisions is closing rapidly. This provision allows for a 100% bonus depreciation on a broad range of assets categorized as ‘qualified property.’ Initially set to expire at the close of 2019, the TCJA extended these bonus depreciation rules for assets placed in service after Sept. 27, 2017, and before Jan. 1, 2023, increasing the deductible amount to 100%.

However, unless there are changes in the law, this bonus percentage is set to gradually decrease over the next few years, ultimately phasing out entirely (100% in 2022, 80% in 2023, 60% in 2024, 40% in 2025, 20% in 2026, and 0% in 2027).

 

Stay Informed

The evolving landscape of tax laws necessitates vigilant awareness and proactive tax planning for businesses and individuals who report on Schedule C. The changes to Section 179 deductions, the phasing out of bonus depreciation, and the modifications to meals and entertainment deductions can have a significant impact on tax liabilities. As such, seeking guidance from tax professionals and staying informed about these changes is crucial for optimizing tax strategies and ensuring compliance with the latest IRS regulations.

This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.

 

Daniel Eger is a tax supervisor, and Cindy Gonzalez is an associate, at Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.

Cyber Criminals Exploit Preventable Human Failures

By
Cybersecurity Special Coverage

Easy Targets

 

While the technology used to prevent cybercrime has certainly become more sophisticated over the years, Paul Savas has two simple words when it comes to the human side of cybersecurity.

“Be smart.”

Unfortunately, too many people simply choose not to.

“If it looks like something’s suspect, don’t open it. Don’t click on the links. So many times, these attacks happen to people who are letting their guard down,” said Savas, vice president of Comcast Business’ Western New England Region.

“How many of us get that Amazon text — ‘there’s a question about the order in your account.’ It’s a bogus text, and you should delete it right away,” he continued. “But so many people don’t. They’re curious. ‘There’s a link … I’ll click it.’ But you have to be smarter than that.”

Then there’s the problem of password laziness.

“They keep creating their own passwords. They’ll even keep a file on their desktop that says ‘passwords,’ kind of a spreadsheet. If I’m a hacker, I love that.”

“The biggest problem is common passwords,” said Sean Hogan, president of Hogan Technology in Easthampton. “So many people reuse passwords; they have a password that they’ve used forever, and they’ll do variations of that password. The problem is, once all the bots out there have that password or something close, they will figure out all your passwords within seconds.”

And he’s run into stubbornness when it comes to changing password habits.

“When I go out to see clients, it’s a constant struggle. One of our hardest adaptations is getting them to start going with password management or password vaulting. They keep creating their own passwords. They’ll even keep a file on their desktop that says ‘passwords,’ kind of a spreadsheet. If I’m a hacker, I love that.”

Allen Reed, assistant vice president and Information Security officer at Freedom Credit Union, has run into similar frustrations.

Allen Reed

Allen Reed says ‘trust, but verify first’ is a good rule of thumb for clicking email links.

“At the credit union, I’m always hammering employees: ‘don’t click that link, don’t open that attachment, don’t ever click until you have verified. Trust, but verify first.’ Yes, it’s inconvenient to make a phone call to someone: ‘did I receive an email from you?’ But that’s the world we live in.”

When he talks about cybersecurity with Freedom employees, Reed says he tries to “put a little fear in them” with examples of mistakes other businesses have made, and the financial consequences. “It gets them to think a little more clearly.”

But the topic isn’t just an occasional one at the credit union. “We institute cybersecurity-awareness training on day one of their employment. In fact, we’re audited from the federal financial sector every year to make sure every employee has had security-awareness training — at least annually, but most importantly, on day one.”

Even then, Reed regularly uses his metaphorical hammer.

“We all receive email all day, every day. And the staff has to be trained over and over,” he said. “It’s like when we were young children at the stove, and we were told, ‘don’t touch the stove.’ We had to be told a thousand times before it sunk in.”

And hopefully, the message took root before a serious burn. That’s what companies of all sizes and from all sectors are dealing with today: the possibility of being badly burned by a breach.

For this issue’s emphasis on cybersecurity, BusinessWest examines why even the best-equipped networks can be compromised because of simple human error — and what employers are doing to drive that message home.

 

Growing Threats

One problem, Reed said, is that cyberthreats have changed over the years.

“In 2005, you were worried about your average teenager sitting in the bedroom after school thinking about how hack into the CIA mainframe; they did it more for the joy of it, to be proud of it.

“Today, we’re talking about nation-states attacking. We’re talking about a government providing monetary resources, building out multi-story buildings, hiring their own citizens and providing them with pay, to attack other nations. That’s what we’re dealing with today. They attack 24/7/365.”

And their efforts have become savvier, Savas said.

“Don’t underestimate the bad actors, because they are so far ahead when it comes to social engineering and how to employ technology. They do research on social media, and they know things about you, like your dog’s name. That’s a pretty easy password to figure out. So don’t make it easy to guess.”

Sean Hogan

Sean Hogan

“You know the environment that the client has is pretty darn secure, but when you’re having people from the outside log in from their own equipment that is not secure, you’re really running the risk of a breach.”

Some companies have unknowingly voided their cybersecurity insurance policies because they lacked a certain level of protection — not just hardware and software, but training and compliance. “Every level of protection has a cost,” Savas added, “and some companies are gambling and not being fully protected.”

Indeed, Hogan said many advances in cybersecurity are being driven by insurance companies, which are not happy about paying out for preventable mistakes.

“They don’t want the exposure,” he went on. “And they’re going make it harder to pay off cybersecurity insurance — because that is paying out constantly. They are losing money on that; they’re realizing they sold a lot of policies where people are not doing what they should be doing. And the hackers have caught up.”

Reed noted that, going forward, most businesses will not be able to get cyber insurance coverage until they move to minimum 15-character passwords. “We moved to that four years ago because I knew it was coming.”

And not just longer passwords — or, preferably, pass phrases that are easy for the user to remember but impossible to guess — but two-factor authentication, like a code sent via text or email to the user’s phone. “You have to do that,” Hogan added. “When we install a new environment for a client, they have to do multi-factor no matter what.”

In addition, “there are paid software programs that manage passwords for you and give you different passwords you can copy and paste into the program you’re trying to log into,” Reed said.

For those who choose their own passwords, replacing letters with symbols in a recognizable word — $ for S, ! for I, etc. — makes the password exponentially safer, Savas said, adding that length is still a better safeguard than complexity.

Hogan encourages password vaulting in password generation. “I never generate my own passwords. The client shouldn’t either. So when I go to create that password, I’m going to generate a password that’s going to be random; it’s going to be extremely complex. It’s not the name of my dog. It’s not the name of my car. It’s got nothing to do with me. And it’s going to be a password just for that one website, for that one portal. And then it gets saved to a secure vault.”

 

Common Sense

While all these procedures are smart, Hogan went on, they only work as long as a company’s employees follow them.

“Can I ensure that everybody’s doing this? No. Can it be a procedure that you mandate? Yes, you can mandate it. But tracking it is a little different. So we add a couple more things on top of all this. Besides password management, vaulting, and multi-factor authentication, then we do the dark-web monitoring and security-awareness training.”

But a lot of cyber protection still comes down to common sense. That includes what people choose to share online, Reed said.

“If you have your entire dossier of who you are on Facebook, Twitter, Snapchat, whatever, once that dossier is out there, that’s what criminals leverage,” he told BusinessWest. “That’s what’s going to convince your grandmother that you need help, because it really sounds like you.”

Or, convince you that your CEO wants you to click a dangerous email link.

“The hackers look at people that can approve wire transfers, ACH batches, you name it,” Hogan said. “They’re looking at owners, they’re looking at CFOs, they’re looking at controllers. We call that ‘whaling’ or ‘spear phishing,’ where they actually target a certain individual. And they’re very sophisticated. They come up with real information.”

Reed agreed. “If they’re going to impersonate the president or the CEO, the only way they’re able to leverage that person, with that crafty email, is if they spend months on social media learning about that person, gathering information to formulate the email. That’s what gets employees to click — because we all want to do what the CEO wants us to do.”

Much of this behavior, from smart password creation to avoiding phishing attacks, comes down to training, Hogan noted. And sometimes, even that’s not enough.

“We can talk until we’re blue in the face, but that doesn’t mean that somebody working at that company is going to follow those procedures properly,” he said, recalling a recent incident when a remote worker for a client used his own laptop to log into the company portal from a remote site, got a suspicious pop-up, and clicked on it, allowing a cyber attacker to navigate the company’s system.

“That’s a big issue. You know the environment that the client has is pretty darn secure, but when you’re having people from the outside log in from their own equipment that is not secure, you’re really running the risk of a breach.”

And many times, Savas said, companies don’t even know they’ve been breached. “The bad actors go in, look around, see if there’s anything worthwhile, then map out a strategy. And that, to me, is scary.”

On the plus side, he believes the message is getting across, and companies are buttoning up with proper training.

“More education is happening within organizations. Attempts are being made, but it all comes down to that individual user being educated, heeding those warnings, and being smart about the things they can control,” Savas explained.

“Confidentiality of the password, not opening attachments, not clicking those links. Those are the three elements that open up an intrusion,” he added. “A lot of it is preventable. The majority is preventable.”

ESG Investing Continues to Be Misunderstood

By Contributor
Special Coverage Wealth Management

Unpacking the Controversy

Presented by Jay Durand

The topic of environmental, social, and governance (ESG) investing has become increasingly popular over the last two to three years, sparking many discussions and questions. What is, at its core, a simple attempt to make better investment decisions has surprisingly caused quite a bit of controversy. So, what are we talking about when we discuss ESG investing, and what is fueling the debate?

 

The ABCs of ESG

First, let’s start with the basic ESG standards themselves. Environmental, social, and governance standards can certainly all be interpreted as politically oriented, but why? Taking them out of order:

• Corporate governance means being responsive to shareholders. This is what any investor should want.

• Social means taking account of a business’ impact on society. This certainly affects the appeal of that business to customers and, therefore, can also affect the financial results.

• Environmental also has a perception impact, as well as an impact on whether the business can be run sustainably over time. For example, slash-and-burn agriculture may be more profitable in the short run as long as there is always more jungle. But properly managing farmland is more sustainable — and likely more profitable over time.

ESG doesn’t replace the financial metrics, but gives a more complete picture of them. There’s nothing here that implicitly should be a problem, as they are simply analytical tools.

Jay Durand

Jay Durand

“The worry seems to be that asset managers are running their businesses with a goal to change the world in certain ways. This appears contrary to what investors see as the goal: to do whatever is maximally profitable.”

The Debate

Once we understand the basics, the question often raised is, how are these tools being used? The worry seems to be that asset managers are running their businesses with a goal to change the world in certain ways. This appears contrary to what investors see as the goal: to do whatever is maximally profitable.

Investors seem to have two complaints about ESG investing. The first one is that investors are suffering as companies are being forced by institutional asset managers to run their companies in a suboptimal way. On the contrary, asset managers typically get paid based on a percentage of the asset value they manage, so they have a significant incentive to get the highest returns they can. Those same asset managers are, as fiduciaries, subject to legal requirements to do the same. So the asset-management industry is motivated to seek out the best possible financial returns by both potential rewards and potential negative consequences.

To believe that asset managers are not trying to maximize returns is to conclude that they are willing to hurt their own paychecks and take meaningful legal risks to change the world. Does this seem likely? Think about this: with billions of dollars on the table, if there was any real evidence of asset-manager slanting, wouldn’t there already be lawsuits in play?

The second complaint is that institutional asset managers are forcing companies to drive outcomes that the investors don’t support. That’s not to say some fund managers aren’t trying to change the world; some are. But those funds are typically very explicitly marketed as such to investors looking for that kind of impact. Since those funds are looking for a specific type of investor, asset managers have a clear incentive to make their orientation obvious — and their self-interest and fiduciary requirements point very clearly in that direction.

For the remainder of the industry, ESG may be a marketing strategy or simply incorporated in their standard investment practice. This makes sense for purely financial reasons, as we noted when we covered the basic standards. Those products are out there and, for those who want them, are easy to find.

 

Is There Reason to Worry?

ESG investing is a set of analytical techniques designed to further inform the financial analysis and investment decision. Those tools can, of course, then be used to implement value-based judgments and to drive desired impacts from that investment, just as with other value-based investment processes. Investment managers should use all the tools available to improve their results, but they have clear incentives (both positive and negative) to disclose both how they are applying those tools and the results.

Is this something to have on your radar? Yes, for reasons both positive and negative. As always, please reach out to our office to discuss your current plan and any concerns.

This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Investments are subject to risk, including loss of principal.

Environmental, social, and governance criteria are a set of non-financial principles and standards used to evaluate potential investments. The incorporation of ESG principles provides a qualitative assessment that can factor heavily into the security selection process. The investment’s socially responsible focus may limit the investment options available to the investor. Past performance is no guarantee of future results. Please contact your financial professional for more information specific to your situation.

 

This article was authored by Brad McMillan, CFA, CAIA, MAI, managing principal, chief investment officer, at Commonwealth Financial Network, and presented by James E. Durand, CPA of MountainOne Investments, where he analyzes the financial markets and researches stocks, mutual funds, and other investments. He is also responsible for managing many of MountainOne Investments’s fee-based investment accounts. Durand holds his FINRA Series 4, 7, 24, 63, and 86 securities registrations as an investment adviser representative of Commonwealth Financial Network. He earned the Chartered Financial Analyst designation in 2003. He has also served on the board of directors for the Northern Berkshire United Way since 2005; (413) 664-4025; [email protected]

 

The financial advisors of MountainOne Investments offer securities and advisory services through Commonwealth Financial Network, member FINRA/SIPC, a registered investment adviser. Fixed insurance products and services offered through CES Insurance Agency. MountainOne Bank is not a registered broker-dealer or registered investment adviser. MountainOne Bank and MountainOne Insurance are not affiliated with Commonwealth. Insurance and investments are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Funds are subject to investment risks, including possible loss of principal investment.

Reopened Karen Davis Krzynowek Cancer Center Meets Growing Needs

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The infusion spaces at the cancer center were designed to be calming and comfortable.
Healthcare News Special Coverage

A Holistic Approach

The infusion spaces at the cancer center were designed to be calming and comfortable.

The infusion spaces at the cancer center were designed to be calming and comfortable.

ribbon-cutting ceremony

Helen Blake, whose daughter the center was named after, speaks at the ribbon-cutting ceremony alongside Deborah Bitsoli, president of Trinity Health Of New England Medical Group, and Dr. Robert Roose.

Sometimes, opportunity is born from a flood of difficulty. Or, simply, a flood.

That was the starting point, anyway, of what has become a $6 million construction and renovation project to renovate and add 5,500 square feet to the Karen Davis Krzynowek Cancer Center at Johnson Memorial Hospital in Enfield, Conn.

“About 16 months ago, as a result of a flood that had occurred in the old cancer center, we took it upon ourselves to set out a vision for what we could do to enhance and expand oncology services for the patients in Enfield and the surrounding towns,” said Dr. Robert Roose, administrative officer for two Trinity Health of New England hospitals: Johnson and Mercy Medical Center in Springfield.

“From there, it became an opportunity for us to create a state-of-the-art facility with infusion bays with natural light, and to bring medical-office infusion, medical oncology, and radiation oncology under one roof in a newly expanded and beautiful space to better meet the needs of the patients receiving cancer care in and around this community.”

Indeed, the project brings all of Johnson’s outpatient cancer services together under one roof, allowing patients to receive multiple facets of their treatment in one location. In addition to improving accessibility for physician appointments, the project also includes new medical oncology infusion bays that feature privacy screening, personal televisions, and space to accommodate a supporting family member or friend.

“Having all those services there, and especially having our partners in radiation next door in that same building, ensures that patients don’t have to go to multiple locations to get different aspects of their care,” said Tory Murtha, director of Ambulatory Oncology.

“I think that is key for this population,” she went on. “They’re already not feeling well, they’re already stressed, and they have a lot of other things going on in their lives. If you’re telling them, ‘well, first you have to go here and here and here and here,’ I think that’s really hard. So if they can just come and see their physician, see their nurse, get their infusion, have some blood drawn, have holistic support staff with the financial navigators and the nurses and the social-work team, that helps them feel like, ‘oh, they’re looking at me from every angle, every aspect of my holistic well-being.’”

This enhanced, multi-disciplinary care will extend even to surgical services, Murtha noted.

“We’re going to be able to bring breast surgeons over to our space within this cancer center to see patients for those diseases, and have the medical oncologist there with them. That makes a huge difference when you’re a new patient and you’re able to have both physicians there from both modalities of care. And the surgical center is going to be next door. That’s huge.”

Tory Murtha

Tory Murtha

“Having all those services there, and especially having our partners in radiation next door in that same building, ensures that patients don’t have to go to multiple locations to get different aspects of their care.”

Indeed, the new Karen Davis Krzynowek Cancer Center is part of a broader, $40 million expansion and renovation project designed to create a comprehensive hub for outpatient services on the hospital’s Enfield campus. Once complete, the S. Prestley and Helen Blake Ambulatory Care Center will include an upgraded surgery center with four state-of-the-art operating rooms, recovery areas, and additional medical office space.

“You’ll notice some of the design elements between the two centers are going to match,” Roose said, “so that there’s some harmony in the appearance, very much elevating the physical space to match the care that’s provided, so that it is top-notch and really delivers on the promises we have made to meet the needs in the community.”

 

Under One Roof

Small changes make a difference in cancer care, medical oncologist Dr. Karishma Mehra said, noting, for example, that patients require a physical examination before they can be cleared to receive chemotherapy.

“It’s important to make receiving care as easy as possible for cancer patients. Now, with physician offices just steps away from the infusion area, patients can begin their treatment more quickly. They also have peace of mind knowing their physician is nearby.”

Other changes in the reopened center are aesthetic, aiming to boost calmness, stress reduction, and peace of mind, Murtha said.

“Having natural light coming in, even if it’s on a cloudy day, is important,” she explained, noting that multiple studies have bolstered the connection between sunlight and a positive mindset. She added that the color scheme and artwork on the walls are intended to be calming, as are amenities like heated seats and blankets in the infusion spaces. And designing large-enough rooms to sit with a family member was also important.

Helen Blake cuts the ribbon for the reopening of the Karen Davis Krzynowek Cancer Center

Helen Blake cuts the ribbon for the reopening of the Karen Davis Krzynowek Cancer Center, which is named in honor of Blake’s late daughter, who passed away after a six-year battle with cancer.

“Before, we really didn’t have that, and many times, especially going through COVID, there was not an opportunity for patients to have a family member with them,” she said. “Even if situations arise where we have to be judicious with how many people we allow in, there’s still enough space to allow caregivers and family members to be with them in their space.”

In addition, Murtha said, “it was important to ensure that, in the nursing station for the infusion area, there’s line of sight to every patient. It’s a big space, but you can still see everything, and that’s from a safety perspective, because we give a lot of medications that can have lots of reactions. So ensuring that the nurses have a line of sight to everybody was really important.”

Also, “one thing I love about the Trinity standards is making sure that everything you need is in the exam room,” she added. “So I can do your vital signs, I can take your weight, I can take your height, all in the exam room. You don’t have go to three different rooms to do different things.”

Murtha added that the employees at the cancer center, many of whom have worked there for 15 or 20 years, were gratified to return. “The people who work there, they stay because it is a family, and they do feel very dedicated to this location and to each other and to their patients.”

Enfield has been an important location for Trinity Health Of New England, Roose noted, sitting between its hospitals in Springfield (Mercy) and Hartford, Conn. (St. Francis Hospital and Medical Center).

“We recognize the needs of this community,” he told BusinessWest, “and we have prided ourself on providing great care in this community and very excited about some of the strategic expansions of services that are happening there, which include the renovation and the expansion of the Karen Davis Krzynowek Cancer Center.”

The idea, he added, was “ensuring that each individual has an environment that is comfortable, state-of-the-art, and beautiful, so that we can fully meet the biological, medical, psychological, spiritual, and social needs of each individual patient in this new space. Our mission is to be a transforming, healing presence in the community.”

Murtha added that Enfield is the health system’s fastest-growing market in the region.

“This is not a generalist model, like some smaller cancer centers. We have doctors that are dedicated to specific diseases to ensure that patients get that same level of high-level service that they would get at a large, academic cancer center.”

“Unfortunately, as people get older, we are seeing more and more cancers, and we’re also seeing a lot more cancers earlier on,” she said, partly due to more ambitious early screening recommendations.

“Even with our GI and our lung-cancer patients, we are seeing some of those a lot earlier now than we have historically. So I think it’s really important that ensure that we provide some specialized care. This is not a generalist model, like some smaller cancer centers. We have doctors that are dedicated to specific diseases to ensure that patients get that same level of high-level service that they would get at a large, academic cancer center. That’s another thing that we’ve really worked on to ensure that our patients get everything that they need in this location.”

 

Bottom Line

At the end of the day, Murtha said, while the building might be impressive, it’s really about the people.

“We want to make sure we’re holistically managing every patient that walks through the door, and their family members, because there’s a lot of burden on the caregivers, too. So we really do take a holistic approach when we meet each of them and ensure that we’re supporting them at every step of the way.”

Roose agreed, noting that “we are confident that these improvements will ease the cancer journey for many individuals in the greater Enfield community.”

BusinessTalk with Diana Szynal president CEO of the Springfield Regional Chamber

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Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 180: September 25, 2023

Joe Interviews Diana Szynal president and CEO of the Springfield Regional Chamber

After several years leading the Franklin County Chamber of Commerce, Diana Szynal took the reins as president and CEO of the Springfield Regional Chamber last summer, and in the year-plus since, she has listened to — and learned from — hundreds of business, government, and economic-development leaders in an effort to ensure the chamber is playing an effective role in the growth and vibrancy of the Greater Springfield economy. On the next episode of BusinessTalk, Szynal talks with BusinessWest Editor Joe Bednar about all this and much more, including some exciting upcoming events, including a reimagined Super 60 that has expanded its categories to recognize a wider variety of businesses and nonprofits. It’s must listening, so tune in to BusinessTalk, a podcast presented by BusinessWest and sponsored by PeoplesBank.

 

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BusinessTalk with Dave Wisseman owner of Mike’s Maze

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Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 179: September 18, 2023

Joe Interviews Dave Wisseman, the tenth-generation leader of this venerable family farm

What started out as an artistic inspiration more than 20 years ago has become one of the region’s most anticipated fall attractions: Mike’s Maze, a massive, visually striking (at least from above) corn maze at Warner Farm in Sunderland. (This year’s edition is a thoughtful reflection on the growing role of artificial intelligence in society.) The maze has become a significant revenue driver for the farm, a welcome benefit in a year when farmers have faced unusually harsh challenges. On the next episode of BusinessTalk, Dave Wisseman, the tenth-generation leader of this venerable family farm, talks with BusinessWest Editor Joe Bednar about the farm’s rich history, how the mazes are created, how the annual attraction has evolved, and much more. It’s must listening, so tune in to BusinessTalk, a podcast presented by BusinessWest and sponsored by PeoplesBank.

 

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At Mike’s Maze, Visitors Can Take In the Big Picture

By
Dave Wisseman
Features Special Coverage

We’re All Ears

Dave Wisseman

Dave Wisseman says this year’s maze is designed to get people thinking about AI and all its implications.

“Where art and agriculture come together.”

That’s how Dave Wisseman, the soon-to-be 10th-generation owner of Warner Farm in Sunderland, described the famous corn maze that has put this operation on the map.

And he’s right. The designs that are cut by a Bobcat into the 10 acres of feed corn growing on one field at this gorgeous piece of land in the shadow of Mt. Sugarloaf certainly constitute art — whether the resulting image is of Babe Ruth, the Mona Lisa, an homage to the country’s national parks, or this year’s creation: a nod, if one can call it that, to artificial intelligence.

Or at least the discussion about AI.

But there is more coming together with agriculture than art at what has become an institution in Western Mass. and a destination that draws people from the 413 and well beyond. Indeed, there are also large doses of tourism, entertainment, innovation, inspiration, culture, and education.

And a whole lot of entrepreneurship.

They all collide at the maze, which started its annual run on Sept. 8, but has been in the planning stages for several months now, said Wisseman, who acknowledged that farms are not big on titles, but if he had one, it would be ‘business manager.’

In that role, he noted that the maze has become more than a revenue stream, although it is certainly that. It has become a huge part of the business plan at the 150-acre farm, which grows a variety of fruits and vegetables and operates CSA (community-supported agriculture) programs in Sunderland with five pick-up areas in the Greater Boston area — so much so that many other traditional fall initiatives, and the feed-corn crop itself, now take a back seat to the maze.

“For us, the corn maze is such a huge part of our business that it made sense to slow down the other things in the fall and focus on making sure the maze is the best it can be.”

“For us, the corn maze is such a huge part of our business that it made sense to slow down the other things in the fall and focus on making sure the maze is the best it can be,” he said, noting that the attraction draws more than 20,000 visitors each year, most from Hampden and Hampshire counties, but neighboring states as well. Many leaf peepers have made it part of their annual visit.

As for the images chosen each year, they are part of the evolving story of the maze, said Wisseman, noting that his father, Mike Wisseman, and local artist Will Sillin originally decided to combine talents and create what they called ‘corn art.’ The inaugural image was of the ‘Amazing Minuteman,’ as seen on the 2000 Massachusetts quarter, with subsequent designs featuring the Mona Lisa, Babe Ruth, King Tut, George Bush and John Kerry (who squared off in the presidential election of 2004), Charles Darwin, Andy Warhol’s Campbell’s soup can, and Julia Child — images seen by the world through photos taken by passing airplanes.

In 2015, Sillin essentially retired from corn art to focus on his personal artwork, and the creative development torch at what became known as Mike’s Maze was picked up by Dave Wisseman and his wife, Jess Marsh Wisseman, also an artist.

Her creations have included ‘Alice in Sunderland,’ a tribute to Alice in Wonderland; ‘Greetings from Earth,’ a celebration of the Voyager missions to explore the outer reaches of our solar system; and ‘Cornstock,’ a celebration of Woodstock a half-century after the generation-defining music event — images captured by drone and then sent to the world.

Greetings from Earth

‘Greetings from Earth’ is one the many works of art etched into cornfields at Warner Farm over the past two decades.
Photo courtesy of Mikes Maze

Getting back to this year’s theme of artificial intelligence, it exemplifies the farm’s efforts to be topical and relevant, but also go well beyond creating art in the rows of now-10-foot-high corn stalks. The larger mission is to get people to think, while also being entertained, Dave said.

Etched around the outside of the maze is the question ‘In the Age of Artificial Intelligence, What Makes Us Human?’ In the middle is the word ‘Thinking.’ The letters take on a high-tech look.

“We’re posing that question out in the maze and inviting people to answer it,” he said. “There’s a trivia game all about the different elements of artificial intelligence and robotics, and we’ll have a kids’ game, where they’ll use binary language to decode a secret message. And there will be a few stations out there where we pose some more of the deeper ethical questions about AI and ask people to consider them.

“‘Can computers think?’ That’s one of the questions we ask,” he went on, adding that the maze is designed to prompt visitors to think about technology and its place in the world.

For this issue, BusinessWest visited Warner Farm and this year’s maze to learn about how this has become much more than a place where art and agriculture come together.

 

Kernels of Wisdom

Tracing the history of the farm, Wisseman said it dates back to the early 1700s, when Eleaser Warner — a descendent of the family who arrived not long after the Mayflower and eventually settled in what was then called Swampfield, now Sunderland — started tilling land near what is now the center of town. (Indeed, the farm’s mailing address is South Main Street).

This is his mother’s family and and one of the founding families of Sunderland, he said, adding that, in the beginning, it was subsistence farming, and it remained that way for several generations. Over time, the farm started growing and selling potatoes, onions, and, later, strawberries.

“In the ’60s, my grandfather was introduced to the concept of pick-your-own strawberries, and we were one of the first people to do pick-your-own strawberries in the Valley, and it really took off,” Wisseman noted. “That was the first venture into the agri-tourism world and inviting people down to the farm to have that farm experience.”

Today, the farm’s main crops are strawberries and sweet corn, but it also grows tomatoes, melons, peas, green beans, peaches, and “a few apples,” he said. It sells wholesale to local stores, other farms, and other CSAs, while operating its own CSAs, including the Millstown Farm Market.

Wisseman said he grew up on the farm until he was 10, when he and his mother relocated to the Cincinnati area, and he would return to the area to work on the farm while in high school and college. He graduated from the College of Worcester in Ohio with no real intention of making the farm his career, but … his commencement coincided with the start of the Great Recession in 2008.

“In the ’60s, my grandfather was introduced to the concept of pick-your-own strawberries, and we were one of the first people to do pick-your-own strawberries in the Valley, and it really took off. That was the first venture into the agri-tourism world and inviting people down to the farm to have that farm experience.”

With few other opportunities available, he came back to the farm to work beside his father in 2010, and together they have continued and refined the many aspects of the operation, including the corn maze, which represents a dramatic (in every sense of that word) and evolving leap forward in agri-tourism.

The concept was born at a Christmas party, he said, when his father and his friend, Sillin, decided to combine their talents. The rest is history in the making.

As noted earlier, the maze has evolved over the years and in a number of ways, from the addition of elements within the maze designed to make people laugh and learn to the diversification several years ago into a separate ‘haunted’ cornfield, featuring a number of attractions, such as an ‘executioner’s chamber,’ designed to entertain and frighten those who enter.

The corn maze at Warner Farm

The corn maze at Warner Farm has become a fall institution, where visitors can see art and agriculture come together in a powerful way.
Photo courtesy of Mikes Maze

The haunted maze and an accompanying Zombie Night Patrol, while both solid additions, were also heavy with overhead, said Wisseman, adding that they were eventually discontinued, with efforts focused on the corn maze and creating an experience for those who visit it.

That experience includes a large playground featuring a drain-tube slide, a tractor-tire jungle gym, and more, as well as horse-drawn wagons, potato cannons, picking out a Halloween pumpkin, and other activities.

Meanwhile, the farm has created what it calls ‘beer mazes’ in a separate cornfield; six brewers — different ones each week — will set up stations in the maze, Wisseman explained. “It’s a brewfest in a cornfield.”

 

Art and Soul

The corn maze and related activities have become so popular, and such a large part of the business plan, that the farm essentially puts its full focus on that operation in the fall, Wisseman said, adding quickly that planning and execution begin months earlier.

It starts with the concept, he said, and much discussion about what the theme will be. Current events often play a role, as do round-number anniversaries, as was the case with the Woodstock theme. While other options were considered, the overwhelming amount of attention focused on AI eventually made it the logical choice for this year’s theme.

With the theme finalized, the next step is the design — in this case, the words, the font, and more — which was created by Jess Marsh Wisseman.

An Adobe file is then sent to Rob Stouffer, owner of Precision Mazes, a Missouri-based outfit that specializes in creating corn mazes. It has been handling the cutting at Warner Farm for several years now, and has a large image of the ‘Greetings from Earth’ design prominent on its website under ‘featured projects.’

Blending accurate GPS technology with advanced cornfield-cutting techniques, the company will transform a field into a message in just a few days, Wisseman said, adding that the work on this year’s maze was completed several weeks ago.

Walking through the maze, one will encounter some vast, wide-open spaces, especially where the word ‘Thinking’ has been etched, but the maze is a far more valuable revenue stream than the corn that was growing there, he said, adding that this acreage is set aside for feed corn, which is sold to other farms and also a few restaurants for the making of corn tortillas.

“We put a lot of thought into this. You want to dive into a topic, you want to make it fun and interesting, but we also like to challenge our visitors and prompt them to think about it a little bit.”

While not quite a year-round undertaking, the maze has become a huge part of this 300-year-old operation, Wisseman noted, adding that months are spent not only on the concept and design, but also the creation of learning opportunities within the maze — for children, but also people of all ages.

“We put a lot of thought into this,” he told BusinessWest. “You want to dive into a topic, you want to make it fun and interesting, but we also like to challenge our visitors and prompt them to think about it a little bit.”

Getting back to this year’s maze and the broad and now-controversial topic of AI, he said the farm isn’t making any kind of statement or forcing any opinions on visitors. Instead, it is inspiring them to think and create their own opinions.

“We’re saying, ‘hey, this is an issue that requires a little bit of thought,’” he said. “It’s easy to be like, ‘the robots are coming for us,’ but we want people to think about what computers can actually do for us; what is their greatest hope for the invention of AI and this technology? And what is their greatest fear?”

These sentiments explain what the maze has evolved into over the years. It is certainly art — the designs as seen from above are exquisite and captivating — but is so much more than that. It is now a destination and a tradition, as well as a huge part of a business that has survived for multiple generations through perseverance and entrepreneurship.

“It’s a big part of what we do,” Wisseman said in conclusion. “And it’s also just a lot of fun — it works a different part of the brain than the farming.”

The creative side.

As It Marks 175 Years, MountainOne Strives to Be the Berkshires’ ‘Go-to Bank’

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Banking and Financial Services Special Coverage

Peaking Their Interest

Bob Fraser (left) and Matt Lauro

Bob Fraser (left) and Matt Lauro

 

Bob Fraser acknowledged there’s a good deal of real estate between the Berkshires and the Bay State’s South Shore. He knows because he traverses that distance regularly.

But for the somewhat unique financial-services institution known as MountainOne, which can trace its roots back to 1848, having bank branches and other facilities on opposite ends of the state, with nothing in between, really … works.

“It has worked out well for us,” said Fraser, MountainOne’s president and CEO. “In the Berkshires, we have tended to be more of a traditional retail, community-based bank, and on the South Shore, we are much more commercially oriented. We do a lot of construction lending in and around the Greater Boston markets, and we also do commercial lending; we have a pretty strong group of commercial lenders.

“In the Berkshires, we see ourselves being able to fill a void, with a high level of expertise in commercial lending within Berkshire County and surrounding areas,” he went on, adding that this void has been created through large regionals either moving their headquarters from the Berkshires (as Berkshire Bank did) or expanding in other areas — leaving what Fraser considers opportunity for his bank in their wake.

Actually, there are many things that work for MountainOne, besides these differing focal points on either end of the state, including that aforementioned strong focus on commercial lending; the diversity of the business (there is an insurance division and an investment arm); its size — large enough to handle the needs of most businesses but small enough to provide a brand of personalized service — a strong focus on technology and how to use it to better serve customers, including a new digital platform for commercial customers to go live this month; and even the name, which doesn’t tie it to one community or one region and now has strong brand recognition in the Western Mass. region, with a mascot — actually, a ‘spokesgoat’ — named Mo.

“Being headquartered in the Berkshires, we want to be seen as the go-to bank for commercial accounts and borrowers throughout Berkshire County and the surrounding areas in Western Mass.”

MountainOne, now with roughly $1 billion in assets, will continue to maximize these various strengths and qualities and work to attain greater market share in both regions it serves, especially in the Berkshires, said Matt Lauro, senior vice president of Commercial Lending, noting that, like the rest of Western Mass. — and the state, for that matter — the region is overbanked.

But it is also, in his view, underserved to some degree.

“There aren’t enough banks that are servicing large commercial clients, or commercial clients as a whole, that are really focused in Western Massachusetts,” he said. “You do have players that are primarily focused here, but there is a void resulting from the larger regionals that have tended to pull back on lending capabilities in Western Mass., and it has left C&I clients, and larger commercial-development clients, with less service than they’ve had historically.”

Added Fraser, “being headquartered in the Berkshires, we want to be seen as the go-to bank for commercial accounts and borrowers throughout Berkshire County and the surrounding areas in Western Mass.”

Both Fraser and Lauro noted that the bank’s strong roots, diversity of services, and strong track record in the Berkshires will serve it well during what can only be described as a time of challenge and uncertainty — when it comes to the economy, banks, and the foreseeable future.

Bob Fraser

Bob Fraser says MountainOne can grow as effectively through online banking as it can through geographic expansion.

“This environment we’re in … I’ve never experienced so much uncertainty as to where we’re headed,” Fraser said. “And an environment of uncertainty makes decision making so difficult, whether it’s running a bank or running your company; it’s incredibly challenging to feel confident about what the next few years are going to look like.”

For this issue and its focus on banking and financial services, BusinessWest talked with Fraser and Lauro about MountainOne and what can and should come next for this bank as its marks an important milestone.

 

Scaling the Heights

Team members at this institution are known as colloquially as ‘mountaineers.’

And on Sept. 19, all of the MountainOne offices will close at 1 p.m. so that the mountaineers can attend a celebration for all employees marking the bank’s 175th anniversary.

There will be much to celebrate, said Fraser, listing a rich past, and a potential-laden future, for the reasons cited earlier.

The institution can trace its roots to 1848 in North Adams, when it was known as Hoosac Bank. Fast-forwarding considerably, Fraser noted that, in 2000, Hoosac Bank and Williamstown Savings Bank came together to create the holding company to be called MountainOne Financial, which became the mutual holding company for those two banks.

“If you’re a sophisticated business owner, you understand that you don’t need a branch at the end of your street; you need a relationship manager, a loan officer who is going to be at your business when you need him, to speak with him, to work with him.”

And in 2007, South Coastal Bank, headquartered on the South Shore, merged its holding company into MountainOne’s holding company, creating what Fraser, formerly president and CEO of South Coastal, believes is the first three-bank mutual holding company.

“We’ve seen a lot more of that now, but MountainOne was the first to actually do it,” he said, adding that, over time, the three banks have been merged into one entity under the Hoosac charter and rebranded as MountainOne. Additionally, Hoosac Bank had owned two insurance agencies, which were merged under the name MountainOne Insurance Agency, while the investment division was rebranded MountainOne Investments in 2013.

Today, MountainOne has some combination of bank branches, ATMs, insurance offices, and investment offices in six communities, three on each end of the state: Quincy, Rockland, and Scituate on or near the South Shore, and North Adams, Pittsfield, and Williamstown in the Berkshires.

When asked if there was future expansion under consideration in the Berkshires region — and, if so, where — Fraser said it’s possible, but what is more likely is continued commitment to advancing internet banking capabilities that allow banks to serve customers more efficiently, with less reliance on brick-and-mortar facilities.

“The world is changing,” he explained. “You don’t need as much of a physical presence in a specific geography as you did before to manage and serve a business customer’s banking needs.”

Lauro agreed.

“If the client is in the surrounding area, we are wherever the client is,” he explained. “Wherever the client is, we are happy to be there, to work with them; that has been our opportunity, and it’s a big thing for us. If you’re a sophisticated business owner, you understand that you don’t need a branch at the end of your street; you need a relationship manager, a loan officer who is going to be at your business when you need him, to speak with him, to work with him.”

Matt Lauro

Matt Lauro says the considers the Berkshires to be overbanked but its commercial customers underserved, leaving opportunity for MountainOne.
Staff Photo

And this is what MountainOne brings to the table, Fraser said, noting that, despite the ability to serve clients through the use of technology, commercial banking is a “personal relationship-oriented service,” said Fraser, noting that MountainOne boasts lending professionals like Lauro and Richard Kelly, also a senior vice president of Commercial Lending based in Pittsfield, who are focused on the region and its economic health and well-being.

“Our vision, at the end of the day, is to help ensure the economic vibrancy of the community,” he said. “And by doing that — by supporting local businesses and entrepreneurs — we’re helping to fulfill that mission.”

 

Economies of Scale

As he talked physical expansion — new branches — in other communities within the Berkshires, Fraser told BusinessWest that it would be “challenging to invest in a branch location in a market that has a declining population base and is already overbanked,” and that the bank’s strategy is, as he said, geared more toward technology.

But he noted quickly that the Berkshires has seen an uptick in population in the wake of the pandemic, with some choosing more rural areas over larger cities, as well as some demographic shifts, with more young people moving to the area, and a surge in entrepreneurship, in part because of COVID and how it prompted many to pursue long-held dreams of working for themselves.

And all of these trends are certainly positive signs for the Berkshire County market and its business community.

Indeed, as they talked about the next chapters in MountainOne’s history, Fraser and Lauro noted that, independent of what is happening with the economy, interest rates, and other factors, there are many reasons for optimism when it comes to broadening the book of business and gaining additional market share.

Some of this has to do with COVID-related population surges, demographic shifts, and that aforementioned surge in entrepreneurship, the size and scope of which are still to be determined. But much of it comes down to what the bank can bring to the table beyond what all banks can provide — money.

“Hospitality is the number-one industry, and we’ve been involved in a number of projects involving hospitality-related businesses, but we also have a number of commercial accounts that involve meaningful employers and well-known companies in the Berkshires,” Fraser said. “And I think there’s a greater opportunity for us over time to continue to expand in that market as we see younger entrepreneurs establishing roots in the Berkshires. Businesses may be looking for an entity that is based in the Berkshires, is local, and obviously has a commitment to the region; we’ve been here since 1848.

“Being a mutual organization, we can look a little bit longer-term strategically than if we were a stock-owned company,” he went on. “It’s just a different business; we can be patient and look beyond the next quarter or two quarters — we have that luxury.”

Elaborating, he said MountainOne has experienced lenders who understand business and what it takes to succeed and can step into the role of adviser as well as banker.

“We’re not just a vendor that is providing you a product, which is the loan,” he told BusinessWest. “We’re also a resource. It’s a relationship, and it’s probably the most unique relationship a business will have. Anyone can sell you something — we’re the only relationship where we have to get what we sold you back.

“Another aspect of it is that we really enjoy this part of the business — it’s in our DNA,” he went on. “We love being with our customers, and we love understanding their businesses. We love talking about what we know, what we’re thinking about, and sharing those ideas.”

 

Mo-mentum

As for Mo the mountain goat, he’s the perfect spokesperson for the bank, as detailed in a bio on its website. “Goats are tough,” it reads. “They turn challenges into opportunities every day, and even in the most demanding, unforgiving environments, goats know how to adapt and thrive.”

MountainOne has done a lot of that over the past 175 years, and that collective work has put it in a position where it can turn challenge into opportunity and scale new heights — in all kinds of ways.

Habitat for Humanity Helps Veterans with Needed Renovation Projects

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Habitat for Humanity’s Veterans Build
Home Improvement Special Coverage

Serving Those Who Have Served

Habitat for Humanity’s Veterans Build

Habitat for Humanity’s Veterans Build initiative has helped many veterans stay in their homes through repair and renovation projects.

Greater Springfield Habitat for Humanity (GSHFH) homeowner and local veteran Max needed help. The colonial home he purchased in the McKnight neighborhood in 2002 had become a hindrance.

Max suffers from chronic obstructive pulmonary disease (COPD) and rheumatoid arthritis, which makes climbing stairs to the second-floor bedrooms challenging. He expressed his concerns to Habitat, and together, they discovered a solution. Habitat, through its Veterans Build Home Preservation program, is building a downstairs bedroom and bathroom for the veteran and his wife, Gloria.

Veterans Build is a national Habitat for Humanity initiative that provides housing solutions and volunteer and employment opportunities for U.S. veterans, military service members, and their families. The program serves limited-income homeowners who are affected by age, disability, or family circumstances and struggle to maintain the condition and utility of their homes.

The home-preservation program provides affordable micro-loans to qualifying homeowners who need help with accessibility modifications, home weatherization, general home repairs, yard cleanup, and landscaping. GSHFH works alongside volunteers and homeowners to make repairs.

“Massachusetts has some of the oldest housing stock in the country, and many aging homeowners are unable to make needed repairs on their own,” said Aimee Giroux, GSHFH’s executive director. “We are happy to be able to help them through the repair process so they can continue to stay in their homes.”

Max, a former Marines corporal, qualified for the Veterans Build Home Preservation program and the U.S. Department of Housing and Urban Development’s Veterans Housing Rehabilitation and Modification Pilot Program. The pilot project gives competitive grants to nonprofits that serve veterans or low-income individuals. The grants can be used to rehabilitate eligible veterans’ primary residences. Purple Heart Homes is donating $15,000 while raising additional funds toward the project. Purple Heart Homes, a nonprofit charity, provides housing solutions for former military members who are disabled and/or have decided to age in place.

“Massachusetts has some of the oldest housing stock in the country, and many aging homeowners are unable to make needed repairs on their own. We are happy to be able to help them through the repair process so they can continue to stay in their homes.”

“Every act of generosity toward our veterans echoes a resounding commitment to honor their service and sacrifice. With deep gratitude, Purple Heart Homes is proud to contribute $15,000 to the Greater Springfield Habitat Humanity home-preservation project, ensuring veteran Maxwell finds solace and security in a place he can call home,” said John Gallina, CEO and co-founder of PHH. “Our mission extends beyond this gift, as we embark on a dedicated fundraising campaign to reach a goal of an additional $10,000. We believe we’re better together. In collaboration with Habitat for Humanity, we hope to build a legacy of compassion and support for those who have bravely defended our freedom.”

GSHFH is dedicated to strengthening communities by empowering low-income families to change their lives and the lives of future generations through home ownership and home-preservation opportunities. Since 1987, Greater Springfield Habitat has built or repaired 120 homes in 23 towns. This project represents the first home to utilize ICFs, which will further reduce long-term costs for the future homeowners.

 

Helping Other Veterans

Last month, Greater Springfield Habitat for Humanity, in association with Window World Military Initiative, Home Depot Repair Corps, and the U.S. Department of Housing and Urban Development’s Veterans Housing Rehabilitation and Modification Pilot Program, performed exterior work for former Army Specialist fourth grade Roland and his wife Jo-Ann.

The pilot project gives competitive grants to nonprofits that serve veterans or low-income individuals. Grants can be used to rehabilitate eligible veterans’ primary residences. 

The one-story Monson house, which the couple purchased in 1992, had fallen into disrepair, and Roland said his insurance company didn’t want to insure it because of the state of the siding. He knew of Habitat for Humanity from reading articles about well-known volunteer and former President Jimmy Carter and thought there might be an affiliate in Springfield. When he reached out, Giroux visited his home to help the couple complete the application process.

Window World Military Initiative donated the siding, replacement windows, a new sliding door, and gutters, while also providing volunteer support to help with installation.

“Our family is blessed and honored to live in a country that provides the freedoms that we all enjoy, and as a small family business, we are the example of the American dream,” said Grace Drost, owner of Window World of Western Massachusetts. “With that, we can’t forget that those freedoms and the American dream aren’t free, and we feel this is an opportunity to thank our veterans for the sacrifices they make so our dreams can come true. One of the core values of our company is rooted in changing lives, and this is a chance for our whole team to give back to those who make the ultimate sacrifice for our freedoms.”

Habitat also replaced the deck and repaired the shed roof and cleaned up the yard.

“Habitat is excellent,” Roland said. “I’m very pleased.”

Macmillan Group Strives to Be a Partner with Its Clients

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From left, Walter Kroll, Mark Healy, and Demetrios Panteleakis
Commercial Real Estate Special Coverage

Finding Their Place

From left, Walter Kroll, Mark Healy, and Demetrios Panteleakis

From left, Walter Kroll, Mark Healy, and Demetrios Panteleakis stand in front of the recently opened Big Y store at Tower Square.

Demetrios Panteleakis has talked often about the interview he and his partners at the Macmillan Group had with the new owners of Tower Square when they were searching for a leasing agent.

He remembers it vividly, and he refers to it often because … five years later, he’s still shocked they ultimately won the contract.

That’s because they, and especially Panteleakis, were candid — as in candid — when it came to their assessment of the state of the building, its future, and what the new owners (and future BusinessWest Top Entrepreneurs) Vid Mitta and Dinesh Patel could and should do with it. Or not do with it, as the case may be.

Indeed, the brokers who came to the interview table were telling the owners they couldn’t lease the office and retail spaces that were vacant or soon to be vacant, Panteleakis recalled, adding that Mitta and Patel were looking seriously at turning the property into multi-family housing.

“I thought I was brutally honest with them, and I had a list of 10 things they must do if they wanted to make this viable again in downtown Springfield,” he said. “It encompassed the totality of the space, how they looked at it, and how they approached it. It was one of those calls where you get off the call and say, ‘this is never going to happen — we just went in there and punched these guys in the mouth; there’s no way they’re calling us back.’”

But they did, and Panteleakis believes that’s because he and his partners, Walter Kroll and Mark Healy, didn’t tell Mitta and Patel what they wanted to hear — even if they didn’t seem too happy to hear it at first.

“With most of the responses, they didn’t like it — they didn’t like what Demetrios was telling them,” said Kroll, managing director of the firm. “They were not appreciative of the plan, but they listened.”

That strategy, if it can be called a strategy, is how the firm operates, said Panteleakis, adding that this mindset applies to clients of all sizes and questions of all kinds, especially those heard most often in commercial real estate, including ‘can you buy/lease my building?’ and ‘how much can I sell my building for?’

Too many people asking those questions are drawn to people and firms who will tell them what they what to hear, Panteleakis said, adding quickly that what they should be looking for is a firm willing to partner with them on the matter on hand, be it selling a property or leasing out the vast spaces within Tower Square.

“I have lost opportunities because I am rigid on giving the correct number to someone, more than I am giving the number that the client wants to hear and has been given to them by another broker,” he told BusinessWest.

The Macmillan Group is the latest incarnation, if you will, of the brokerage and property management firm known as Macmillan & Son. When the third-generation president of that firm, Doug Macmillan, ultimately lost his battle with cancer in 2016, the firm was in limbo, Panteleakis said, adding that he was told by Macmillan’s mother, Pat, who passed away in 2002, that Doug’s wishes were for Panteleakis to take the helm and ultimately write new chapters to the Macmillan story.

At first, he was somewhat reluctant to take that course — he already had a job working for MassMutual in its real-estate arm, and was fond of it.

He was more fond, though, of the opportunity to essentially run his own firm. And his eventual partners — Kroll and Healy — were of that same mindset.

“I have lost opportunities because I am rigid on giving the correct number to someone, more than I am giving the number that the client wants to hear and has been given to them by another broker.”

“I knew right away that I couldn’t do it myself,” Panteleakis said. “So I approached Mark and Walter, two of my closest friends, and we came together on this; we pretty much run a co-op here.”

Today, this co-op boasts a growing portfolio of clients and properties — topped by Patel and Mitta, Tower Square and the neighboring 1550 Main St., also acquired by those two serial entrepreneurs — in Western Mass., but also well beyond, as we’ll see.

Looking toward the future and what’s in the business plan for the Macmillan Group, the partners said the simple and direct goal is to continue growing the firm and the portfolio by convincing more property owners (and potential property owners) to become partners with the firm, in the same vein as those who own Tower Square.

For this issue and its focus on commercial real estate, we talked with the partners about their firm, the real-estate market in the region, and what is likely to come next for both.

 

Space Exploration

As they walked with BusinessWest from their offices on the mezzanine level at Tower Square to the ground floor and the ‘Dunk’ (Dunkin’ Donuts) for a coffee, the three partners pointed out many of the changes that have come to this important piece of real estate over the past five years.

These include the return of the Marriott flag to the hotel after it was lost for several years amid profound deterioration of the structure and the service provided in it, and the facility became known as Tower Square Hotel; the arrival of Big Y’s scaled-down supermarket next to the ‘Dunk’; White Lion Brewery; the Greater Springfield YMCA’s fitness center and daycare operation; and new tenants in the office tower, including Farm Credit Financial Partners, Wellfleet, and others.

Overall, Tower Square boasts a wide array of different types of tenants, which makes it ideal for the Macmillan Group and its partners, who bring different areas of expertise to the table. Panteleakis offers a diverse background, including work in succession planning, development, and construction management, but especially a strong focus on the office market through his work with MassMutual. Kroll, meanwhile, brings expertise in the retail market, while Healy has focused on the office market as well as industrial and medical.

And all three brought an understanding of this market and relationships with the brokerage community to the ‘new’ firm, as well as that mentality of partnering with clients rather than simply trying to sell or lease out their building.

This was especially true with Patel and Mitta, who were taking on a huge risk with Tower Square. Indeed, in addition to losing the Marriott flag from the hotel, MassMutual — the original owner of the building, and the primary tenant — was preparing to move out of several floors of the office tower. Panteleakis recalls that most of the talk, and speculation, was about converting the hotel, and perhaps parts of the complex, into multi-family housing.

It was with this backdrop that those two partners commenced their search for a brokerage firm.

“They interviewed every brokerage firm in Western Mass., and then it was our turn; we were the last ones,” Panteleakis recalled, adding that Kroll and Healy were face-to-face with the entrepreneurs, while he joined on a conference call. And they, and especially Panteleakis, were brutally honest.

“They didn’t like what they were hearing, but they listened,” Healy said. “And that’s why I give these guys a ton of credit.”

Kroll agreed. “With a lot of people, you talk to them and say, ‘you have to do this,’ or ‘what about this?’ and they’re insulted by it. These guys, they listened, and I think it’s because we were the first people not to tell them what they wanted to hear.”

Among other things, Panteleakis advised them to be creative when it came to leasing out the retail and office spaces, and also to be patient, and not chase tenants with attractive offers on rates, even with MassMutual set to vacate large amounts of space.

“I thought it was the most valuable building in Springfield, and I still think that,” he said. “Where others came in and told them to lower their prices, I did the opposite; I told them they needed to appropriately value the building against the competition and not chase tenants with rental rate. I advised them to establish their rate and strengthen it.”

This mindset of being honest and getting clients to listen has helped the firm grow its portfolio of clients and properties with Macmillan signs. These include Hadley Park Plaza, Palmer Plaza, the office complex at 877 South St. in Pittsfield, the Laurin Publishing Building at 100 West St. in Pittsfield, 20 Maple St. in Springfield, industrial land in Agawam, and many others.

It’s a diverse portfolio, Panteleakis said, adding that the obvious goal moving forward is to broaden and deepen it by being honest with clients and potential clients, and partnering with them to achieve whatever goals they’ve set.

Which brings Panteleakis back to those comments about numbers and projections that he and his partners give to clients, and not telling them what they think they want to hear.

“Some brokers will take the attitude, ‘don’t worry about what it actually sells for — just get the listing first, and then Mother Nature will take care of itself,” he said. “Here, we have a philosophy that this is not the kind of business we want to do. We rate success on how close we came with our assessment and analysis. Did we give that client the right information?”

 

Looking Ahead

As they survey the commercial real-estate landscape, and especially the local office market, the three partners at the Macmillan Group take what would be considered the optimistic view about the present and foreseeable future.

“We are past this concept of working from home — it’s losing traction,” Panteleakis said with a strong dose of conviction in his voice. “People are understanding that the productivity of their workforce is just not the same; whether it’s J.P. Morgan, Google, Apple … the trend now is ‘you have to be in the office,’ which is certainly a positive for the office market.”

Elaborating, he said corporations large and small are veering toward bringing their workers back the office, if they haven’t already, on the premise that teams of workers don’t work as effectively when some or all their players are working from home.

Persistently lower occupancy rates for office space in cities ranging from Boston to San Francisco notwithstanding, Panteleakis and his partners believe the office market locally, and especially in downtown Springfield, will withstand this post-pandemic environment and the trend toward remote work.

“What I see right now is the 3,000- to 5,000-square-foot users just starting to emerge,” Healy said. “This year has been incredibly slow, but I’m beginning to see people look to next year, for what space is available. And I think it’s going to be that way for the next 24 months.”

Meanwhile, Panteleakis noted that Regus, a leading provider of office space, co-working environments, shared space, and other products will be creating such opportunities on one floor in Tower Square, roughly 16,000 square feet, bringing more options to business owners in the wake of the pandemic and other shifts within the workplace.

Still, COVID and other factors have brought some changes to the landscape, Panteleakis said, citing law firms, a huge force within the local office market, especially in downtown Springfield, as one example. He noted there are fewer large firms, and the larger firms are getting smaller as Baby Boomers retire. Meanwhile, fewer clients are actually coming to the firms’ offices to meet with lawyers, some of whom are, in fact, working remotely. All this adds up to this segment absorbing less office space in the years to come.

Meanwhile, an even bigger challenge moving forward might be the growing number of businesses, across all sectors, that are not surviving the current generation of ownership.

Indeed, Panteleakis notes with concern that the pandemic convinced a number of Baby Boomer business owners to call it quits. Meanwhile, an alarming number of those still slugging it out have no real succession plan in place.

“They’ve put 40 years into a business, and COVID taught them that life’s too short and they really can find something else to do with their free time,” he said. “Their children don’t want their business, or they’re doing their own thing. And if they go to put the business up for sale, first you have to have entrepreneurs who are willing to take the risk and have access to capital … and when you add that kind of formula to what has happened with bank lending and interest rates, we’re seeing a lack of continuity with businesses.

“Initially, you say, ‘great, there’s so much for us to sell,” he went on. “The question is … who’s going to buy it?”

BusinessTalk with Gene Cassidy, president and CEO of the Eastern States Exposition

By
Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 178: September 11, 2023

BusinessWest Editor Joe Bednar talks with Gene Cassidy, president and CEO of the Eastern States Exposition

Staging a 17-day fair on the scale of the Big E is a year-round job, one marked not only by hard work and meticulous planning, but a dose of luck (what’s the weather forecast?). This is an event with plenty of momentum, even after more than a century of bringing food, music, and activities to the masses and raising the profile of the region’s agricultural sector. On the next episode of BusinessTalk, Gene Cassidy, president and CEO of the Eastern States Exposition, sits down with BusinessWest Editor Joe Bednar to talk about last year’s success — five record-setting days! — what’s in store for this year’s edition, which opens Sept. 15; the massive regional economic impact of the Big E; and how to keep things fresh year after year.It’s must listening, so tune in to BusinessTalk, a podcast presented by BusinessWest and sponsored by PeoplesBank.
 

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BusinessTalk with Joel Doolin, MiraVista’s executive vice president

By
Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 177: September 4, 2023

Joe Bednar talks with Joel Doolin, MiraVista’s executive vice president

At a time when behavioral-health issues, substance misuse, and family and workplace stressors are all on people’s minds, the need for responsive services is higher than ever. MiraVista Behavioral Health Center in Holyoke has been meeting those needs since 2021 with an array of inpatient psychiatric services, outpatient substance recovery programs, and community outreach to educate people about mental wellness and the resources available to achieve it. On the next BusinessTalk episode, BusinessWest Editor Joe Bednar talks with Joel Doolin, MiraVista’s executive vice president, about these services, his passion for behavioral health, and why there’s still progress to be made when it comes to talking openly about mental health and overcoming the stigma too often associated with it. It’s must listening, so tune in to BusinessTalk, a podcast presented by BusinessWest and sponsored by PeoplesBank.

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Companies Are Getting Serious About Their Employees’ Mental Wellness

By
Modern Office Special Coverage

Critical Conversations

 

It’s easy to tell when someone is struggling with asthma, Krista Mazzuca said.

“If I come to work with bad asthma, you see me breathing hard. My supervisor says, ‘hey, Krista, take a minute,’” said Mazzuca, first vice president of Human Resources at PeoplesBank.

But mental distress, she noted, can be tougher to spot.

“It’s important for managers in an organization to understand how mental health impacts their employees. If I’m stressed out, you have to know how to recognize that, too, and say, ‘hey, you look stressed. Maybe take a walk. Maybe take tomorrow off.’”

Shana Hendrikse agrees. As senior advisor at Giombetti Associates, a Wilbraham-based consulting firm that specializes in building high-performance companies, she said employees’ mental wellness is a key factor in that effort, and one more companies are becoming aware of.

Shana Hendrikse

Shana Hendrikse

“While it’s gotten better, I don’t think we’re there yet. There’s more conversation and more awareness from businesses. But there’s work to do.”

“Burnout is a real thing, especially after COVID, and there’s been a definite increase in mental-health issues in the workplace,” she told BusinessWest. “We definitely touch on that a lot in our team-building conversations, our one-on-ones with managers and supervisors, making sure they create a safe space and an environment where you feel comfortable sharing what you’re feeling, which ultimately reduces the stigma around mental-health issues.”

At a time when employers across the country, and across all sectors, are still grappling with a workforce crunch that has made talent recruitment and retention more challenging than ever, many businesses say keeping their workers happy is key. And happiness is, very often, tied to mental wellness and stress reduction — hence, a greater willingness by employers to directly talk about it.

“While it’s gotten better, I don’t think we’re there yet,” Hendrikse said. “There’s more conversation and more awareness from businesses. But there’s work to do.”

One key to that work is what Pam Thornton, director of Strategic HR Services at the Employers Assoc. of the NorthEast, calls “empathetic leadership.”

“We’re in this extreme talent crunch, with not enough people to do the work, and people are stressed; they’re leaving the workforce in droves, retiring early, or leaving a full-time job and taking two part-time jobs. There’s so much pressure, and employees have so many choices.”

In such an environment, she went on, “empathetic leadership is the driving force behind retention. It’s about individualized conversations, understanding where people are. ‘Is there too much work?’ ‘Are you happy here?’ ‘Do you have balance?’ Maybe they can’t focus on work because of what happens at home. We might not have all the answers, but we may be able to make all kinds of accommodations. We need to try. At the end of the day, if we don’t make space for the things they’re asking for, we won’t be able to get our work done.”

Pam Thornton

Pam Thornton

“We might not have all the answers, but we may be able to make all kinds of accommodations. We need to try.”

And that’s the heart of the issue — employee wellness isn’t just good for the employee; it benefits the business, too, and it’s worth investing in for both reasons.

“The stress of the workplace has definitely been exacerbated over the past few years, and that stress is something employers have recognized,” said Joel Doolin, executive vice president of MiraVista Behavioral Health Center in Holyoke and its sister facility in Devens, TaraVista. He added that a positive employee experience is directly tied to a positive business outcome, so employers would do well to be open about mental and emotional wellness at work.

“It starts with the culture of an organization and buy-in from the leadership,” he explained. “Mental health is like any other employee factor. If someone has the flu, you make sure they have days off. Well, if they’re overwhelmed, they should have a mental-health day — a sick day like any other sick day. Ten years ago, talking about that was taboo; you just called in sick and did what you had to do. Now people are more open about it. Employees should still have rules and regulations, but days off for mental health are important.”

 

Help Is on the Way

Mazzuca cited statistics suggesting one in five people struggle with mental illness, but only about a third of them seek help. And that can be a problem at work.

“It’s a real thing, and I think it’s more present now than it’s ever been,” she said. “If you have anxiety or depression, it’s an invisible disability. But people don’t want to miss work.”

That leads to the phenomenon called ‘presenteeism,’ she noted, which connotes people who come to work but aren’t fully invested because of what else they’re dealing with, affecting both their wellness and the company’s productivity. Mental health can also affect physical health, she added, which makes the situation even worse.

There are resources companies can offer, however. At PeoplesBank, she cited a well-attended class on burnout and resilience, robust mental-health coverage in employee health plans, and free subsciptions to online resources like Calm.com, a meditation and mindfulness app, and Care.com, a resource for finding dependent care.

Joel Doolin

Joel Doolin

“If someone has the flu, you make sure they have days off. Well, if they’re overwhelmed, they should have a mental-health day — a sick day like any other sick day.”

“The important thing is, we’re trying to promote well-being,” she said, also noting that the bank has invested in its employee-assistance program (EAP). “We’ve done a lot to get people to use our EAP and give them access to mental-health professionals. The EAP is open to not only them, but their family. It’s also important that people know it’s confidential and free of charge.”

Thornton agreed that EAPs are a valuable tool to help employees with issues that company leadership might not be suited to deal with. “It’s confidential, and it provides a resource for them to connect with someone who can help them.”

Doolin noted that, while EAPs have been around for some time, he sees them getting more attention now. In some sectors, they’ve long been a key resource for employees, Hendrikse added.

“I was in banking for 25 years, and the EAP was always a thing in banking. It was part of the onboarding process,” she said, adding that companies should emphasize such resources up front, during onboarding and even recruitment, because they hold value for plenty of people.

“I don’t think a lot of companies stress that enough in terms of onboarding people. It’s important to have these conversations with people: ‘hey, we have these resources for you. If you’re feeling burned out, if something’s going on at home, here are the resources we have for you.’ It sets the tone, knowing that you’re taking a job where you can be vulnerable about what you’re going through. It reduces stigma.”

After all, Hendrikse added, while employees certainly want good pay, a solid benefits package, and paid time off, they also value a culture that recognizes the damaging effects of stress and the need for work-life balance. “It would make me feel like this company cares about me and my well-being. And I think you might get a lot more engagement from employees when they feel valued and safe. I mean, we’re all human.”

That positive engagement means having conversations with employees and building trust between the leadership and workforce, Thornton said. That might involve surveying employees on what they need and — even more critically — following up. That might mean more scheduling flexibility or mental-health days off, or recognizing when there’s just too much on an employee’s plate.

“Hearing nothing, it’s easy to keep going along and assume we’re doing everything right. You have to get feedback,” she said. “When there’s turnover, sometimes you don’t replace a person, and now there’s more on someone else’s plate. That’s a real thing.

“Without good leaders — not just at the top of the business, but good, empathetic leaders throughout the company — you won’t be successful,” she added. “You have to invest in your leaders.”

 

Support System

Getting back to her initial asthma analogy, Mazzuca said employees need to feel supported at work when they’re grappling with mental-health issues and stress, whether that means being allowed to take a leave of absence without penalty or being encouraged to access other resources without fear of stigma.

“People are more vulnerable to the negative impacts of stress outside the workplace if they don’t have positive relationships at work,” she said, noting that conversations around these issues — followed, again, by real action — benefit everyone. “It increases retention, and it increases productivity. It’s worth investing in helping them be their best self.”

As long as they’re not abusing the privilege and taking time off every week, Doolin said employees should be able to use paid sick time for legitimate mental-health struggles, and be open about it. And employers need to recognize that it’s tougher than ever to escape the stresses of life — at home or at work.

“Today, we have cellphones and laptops. Twenty-five years ago, you went to work and dealt with work, and then you went home and dealt with home. Now, everything follows you wherever you go. I think it’s important to recognize that and talk about how we can mitigate some of that. Maybe put in a no-email-on-vacation policy to make sure people get the rest they need. I’m a fan of technology, but it can also be a hindrance.

“Being a leader in an organization that works with people that have mental-health situations, it’s important for us to recognize the need for flexibility,” he added. “Even as a hospital, we still have situations where people can work from home — not direct-care staff, but we’ve adapted to that flexibility. We recognize that employees and employers are in it together. In order to be successful, to have great employees, we need to be able to pivot and give them what they need.”

Hendrikse said there’s often a gap between what employers think they’re providing and what employees feel like they’re getting when it comes to resources and benefits, and closing that gap often comes down to simply starting conversations.

“It’s about creating a culture where it’s OK to talk about these things,” she said. “You can have trainings and workshops, provide resources like EAPs, bring in experts. But the supervisor can also have these conversations directly with the team. Make it relatable: ‘hey, this is what I struggle with myself.’ When supervisors are more transparent with their own struggles, when they’re being vulnerable, employees will feel safer sharing.”

There has been an uptick in this vulnerability and openness in organizations since COVID, Hendrikse added, but much more common, even now, is a persistent unwillingness to share certain things with the boss.

“It’s seen as a weakness,” she said. “A lot of places are doing better with that, but I think we still have a ways to go.”

Representatives Must Navigate the Many Ways to Probate an Estate

By Contributor
Law Special Coverage

Complex Decisions

By Michael Roundy, Esq.

Estate representatives have a variety of options for how to probate an estate. Decisions made early in the process may have long-term consequences, as reflected in a recent decision of the Supreme Judicial Court, In re Estate of Slavin.

The Massachusetts Legislature enacted the Massachusetts version of the Uniform Probate Code (MUPC) in 2008. Under the MUPC, estates may be administered under a ‘formal’ or ‘informal’ process, as ‘supervised’ or ‘unsupervised’ administrations, as a ‘voluntary’ administration, and even by appointment of a ‘special personal representative’ under some circumstances.

Sorting through all of these options may seem daunting — and mistakes made at the initial stage may have lasting impact. In Estate of Slavin, an early decision to file as a voluntary personal representative nearly prevented the voluntary PR from pursuing a wrongful-death claim on behalf of the estate.

An informal probate, under Section 3-301 of the MUPC, is possible where the proposed personal representative has priority for appointment (usually named as PR in the will), and is in possession of the original will. A petition for informal appointment in intestacy (without a will) must also attest that, after a reasonably diligent search, the petitioner is unaware of any unrevoked will or why such an instrument the petitioner is aware of is not being probated. Informal probate is overseen by a magistrate rather than a judge, and hearings are not permitted. The benefit of informal probate is that it can be a faster process than a formal probate.

A formal probate, under Section 3-402 of the MUPC, is typically heard by a judge and may involve one or more hearings. It may be necessary to file a formal probate in order to object to an informal probate if the terms of the will are unclear, if the administration needs to be supervised, if the court needs to appoint a special personal representative, or for other reasons. A formal petition may also be used to obtain a judicial determination of intestacy, and of the heirs, without requesting the appointment of a personal representative.

Michael Roundy

Michael Roundy

“Sorting through all of these options may seem daunting — and mistakes made at the initial stage may have lasting impact.”

A formal administration may be supervised or unsupervised. A supervised administration is overseen more closely by the court, which typically must approve everything the PR wants to do before he or she does it. A supervised administration may be requested by the PR or by any interested person, and may be requested while a petition to appoint the PR is pending, or after the PR has already been appointed. Where a will directs supervised administration, it will be ordered unless the court finds that the circumstances relating to the need for supervision have changed since execution of the will.

For some estates, it may be necessary to appoint a special personal representative under Section 3-614 of the MUPC for specific purposes, such as searching the decedent’s safe-deposit box for his or her will, or to preserve assets of the estate. A special PR may also be appointed for the purpose of performing an act that a general PR cannot or should not perform due to a potential conflict of interest. While a special PR can have many of the same powers as a permanent PR, the special PR is not able to sell or distribute any assets of the estate.

Small estates may be administered by a voluntary PR. Under Section 3-1201 of the MUPC, a voluntary PR may administer an estate consisting only of personal property (no real estate) that includes a vehicle owned by the decedent and other property valued up to a cap of $25,000. Although voluntary PRs are recognized as such by certification by the register of probate, they are not appointed to the role by a judge or magistrate.

 

Case in Point

In Estate of Slavin, the decedent’s daughter filed the necessary statement of voluntary administration, which the register of probate certified in accordance with Section 3-1201. The daughter served as the voluntary PR for more than four years before she filed a petition for formal probate, seeking appointment as a personal representative under Section 3-402. She feared, correctly, that, as a voluntary PR, she would be unable to pursue a wrongful-death claim.

Although all five of the decedent’s other children assented to the daughter’s appointment as PR under the formal petition, the Probate and Family Court judge denied the appointment. The judge noted that Section 3-108 of the MUPC prohibits filing a formal petition for appointment more than three years after the decedent’s death. Since the decedent in Estate of Slavin had at that point died more than four years earlier, the judge denied the formal petition.

“The Estate of Slavin case reflects the potentially dramatic impact of an early decision about which method to use for probating an estate.”

The daughter appealed. The Supreme Judicial Court took the case for direct appellate review and reversed the lower court’s decision. The SJC noted that one of the few exceptions in Section 3-108 to the three-year limit on filing for a formal probate appointment is “appointment proceedings relating to an estate in which there has been a prior appointment.” While the Probate and Family Court judge found that a voluntary personal representative is not a ‘prior appointment,’ the SJC disagreed, holding that the exception in Section 3-108 “does not limit the type of prior appointment that qualifies.”

It agreed that, while a personal representative in a formal or informal probate must be appointed by a judge, a voluntary PR does not need to be. However, the voluntary PR statute does permit the register of probate to “issue a certificate of appointment to such voluntary personal representative” (MUPC Section 3-1201).

Moreover, the voluntary PR has the authority to pay debts, receive and sell personal property, pay funeral expenses, and distribute any balance remaining according to the principles of intestate succession. In addition, Section 3-1201 notes, third parties delivering property to the estate are “discharged and released to the same extent as if he dealt with a personal representative of the decedent.” Finally, a voluntary PR is liable for his or her administration of the estate to the same extent as a personal representative who was appointed by the court.

For all of these reasons, the SJC held that a voluntary PR constitutes an ‘appointment’ within the scope of the ‘prior appointment’ exception of Section 3-108. Thus, the daughter could be formally appointed (more than four years after death) as PR and pursue the wrongful-death claim that she could not pursue as a voluntary PR.

The Estate of Slavin case reflects the potentially dramatic impact of an early decision about which method to use for probating an estate. Would-be estate administrators may want to seek assistance from a qualified attorney in navigating such complex decisions.

 

Michael Roundy is a partner at the Springfield-based law firm Bulkley Richardson.

FootCare by Nurses Focuses on Preventive Care, Quality of Life

By
Business of Aging Special Coverage

Before the Fall

Early in Kate Clayton-Jones’s nursing career, she was struck by the cost — both financial and personal — of neglecting preventive care.

Specifically, of the feet.

“I kept seeing a whole bunch of people getting their feet amputated or having surgeries for having fallen,” she said, “and I thought, ‘my God, this is just so preventable.’”

That thought eventually (after plenty of planning, training, and persistence) became FootCare by Nurses, a model for preventive foot care that meets clients — mostly older people — where they are, especially in their homes.

“This isn’t nursing care like, ‘let me come in every day and feed you, clothe you, whatever else,’ but nursing care that could come episodically, once a month, or once every other month, and do this much-needed work, which is taking care of the feet of older adults.”

She explained that her nurses sit on the floor and look for circulation problems, sores, and calluses, and release tension in the toes that can limit flexibility and lead to falls. They also check the fit and lacing of shoes and make recommendations about socks. “All our work is designed to improve quality of life. This is an alternative pathway for foot care from typical podiatry or nail salons that most people know.”

For those who would prefer a clinic to a home visit, FootCare by Nurses also has offices in Greenfield, Lenox, and Fitchburg.

“It can be as simple as showing someone how to lace their shoes. We have an opportunity to spend time with people to help them understand simple changes like the way their shoes and socks fit, and skin care. We do a lot with balance and trip hazards,” Clayton-Jones explained.

“Elders are getting touched, and they’re having meaningful conversations. The work we do restores dignity and quality of life. Because we come in as nurses, we can talk about other things as well, and we see them on a regular basis, not just when they have an acute incident.”

While podiatrists are medical doctors whose responsibility is to diagnose and fix problems — recommending treatments and performing procedures — she and her team are licensed nurses with extensive training in foot care, whose responsibility is to prevent problems from happening in the first place. And there is some overlap.

“We have many podiatrists who support this work, though podiatry is a medical intervention, and a lot of this is not medical; it’s basic activities of daily living, and nursing is ideally suited to take care of people in that way,” she said. “There was this gap, and a huge opportunity to do something that is so meaningful, and it’s just a delight.”

The work is important, Clayton-Jones said, because people can become embarrassed by neglected feet and neglect them further — often with dangerous and even tragic results. She was thanked recently by a man whose edema was diagnosed by FootCare by Nurses, and he got the treatment he needed before the situation grew dire.

But even beyond such critical interventions, she said, people are happy when they can simply find pain relief and be able to leave their house or walk with their loved ones.

“We support quality of life in so many ways,” she said. “We not only make a difference when we walk in, but we give them peace of mind. It’s the only type of nursing I’ve done where I’ve heard someone say, ‘I can’t wait for that nurse to come back.’ It’s just such a nice intervention.”

 

Finding Her Footing

Clayton-Jones didn’t start off as a nurse; in fact, she earned a business degree and was working in aviation before shifting her flight plan to nursing school.

About a decade ago, while working on various floors of Berkshire Medical Center, she encountered patients with inflamed, infected feet, or — even worse — who had broken a hip in a fall, where poor foot care had been a factor. So she asked herself, “why can’t we, as nurses, take care of feet? I can learn to do it.”

So she sought further education through the Wound, Ostomy, and Continence Nurses Society. During that time, she recalls watching a toe amputation of a Korean War veteran who had developed an infection due to ill-fitting shoes a doctor had recommended.

Kate Clayton-Jones

Kate Clayton-Jones at the American Foot Care Nurses Assoc. 2023 National Conference.

“The surgeon did a beautiful job. He was very nice and kind and connected to this man. But the man was very angry because he was losing a part of his body.”

It occurred to her that no one had checked on him and his new shoes — a simple intervention perfect for a nurse’s assessment skills. And she wondered how many other serious infections, debilitating falls, and amputations could be avoided altogether with simple, home-based foot care … by nurses.

After becoming a certified foot-care nurse, Clayton-Jones started treating people’s feet in various setttings. When met with skepticism by people who suggested clients just visit a nail salon, she had a ready answer.

“I said, ‘you don’t understand this population. They’re not able to go out. You’ll never see these people; they’ll never be on your radar, but they are costing the healthcare system an inordinate amount of money when they fall.’”

More importantly, “it gave me great joy to bring dignity and function to these humans who have put so much back into the community,” she added. “These are really incredible people. It doesn’t matter how wealthy or poor you are or where you live — your feet still need to be taken care of.”

By 2016, she had become very busy and realized she couldn’t provide all the care on her own.

“I knew, if I’m going to take on the responsibility of taking care of all these people, this needs to be a real business, with people who want to do this work,” she told BusinessWest. “I will train these nurses, but it needs to be a business that solidly sits on its own foundation.”

In doing so — the business has expanded from three employees in 2016 to 42 today — Clayton-Jones said she’s not only taking care of the community, but providing good jobs for nurses on schedules that work for them, which is especially important if they have families.

“They can start a quarter after nine, after they drop off the kids, see six or seven people, and pick the kid up by three o’clock,” she said, adding that “foot care is not an emergency — it’s prevention.” So if a snowstorm strikes, appointments can be easily moved to a different day. In short, she’s providing nursing jobs with predictable, and not burdensome, schedules.

nurse at FootCare

At right, a nurse at FootCare by Nurses teaches three new nurses how to touch and treat feet.

“I wanted to give them autonomy and responsibility and quality of life while also a joyful, meaningful job that’s not just about trimming toenails, but restoring the best function to an older foot.

“It turns out feet are really, really important,” she added, noting that 40% of cardiac flow is related to foot and leg movement, and toes are part of the body’s ‘seeing’ system for positioning itself in space, so the healthier the feet and toes are, the less likely an older person will fall.

“It’s just preventable with good foot care, good foot function, knowledge about how shoes fit. I started pulling the pieces together — what was behind everything we were doing. And we keep evolving the science.”

And as age demographics in the U.S. keep trending older, it’s a growing problem, especially among the Baby Boom generation.

“They need help — not just care at a podiatry office or a nail salon; they’re going to need this help at home because many can’t drive, or they’re cognitively impaired, or frail. They need to stay home and have care come to them,” she explained. “So the business model was not working with one visiting nurse association or one long-term-care facility — we would work with many, and I would work regionally.”

 

Next Steps

And the practice is still growing. Clayton-Jones — who regularly speaks on foot-care issues nationally and around the world — recently announced that three new contracts will allow FootCare by Nurses to expand its services in Central Mass., the city of Springfield, and some towns in Connecticut.

A contract with the Program of All-Inclusive Care (PACE) in Springfield will allow Serenity Care case workers to refer clients to FootCare by Nurses. The PACE program is centered on the core belief that, given a choice, most elders, the disabled, and their families would choose to receive care in their homes and communities rather than in a nursing home — so it meshes well with Clayton-Jones’s own mission.

Meanwhile, a contract with Tri Valley Elder Services will expand FootCare by Nurses’ services into the area south of Worcester. Additionally, FootCare by Nurses will take on former clients of Connecticut-based Pedi-care.

“This expansion and continued growth means adding close to 1,000 new clients and $300,000 in new revenue, which will trickle in slowly as referrals for foot care come in,” she said, adding that she plans to add two administrative positions and 10 nursing positions — and is actively hiring for them.

“At the end of the day, if you want a meaningful nursing career, this is just an excellent place. If you’re community-minded, if you like one-on-one conversations where you can make a huge difference, this is really a good career,” she said. “My nurses speak of it as the most joyous job they’ve ever had. They thank me for the autonomy and responsibility, and they get to use all their nursing skills. And they feel connected to the community that they live in, supporting other people.”

As the company grows, its mission — to redefine elder care by making evidence-based foot care central to general health — will not change, she added.

“Our mission is prevention, and our passion is caring. Feet are literally the foundation for our body; they allow us to be mobile, they pump blood back to our hearts, and they connect us to the world. Any fault in feet affects the whole body, just like faults in a foundation affect the entire structure. Yet, feet are too often ignored or neglected, while their care and well-being are essential.”

In short, Clayton-Jones stressed, FootCare by Nurses is not an aesthetic service that simply makes feet and toes more presentable.

“These people need nursing care; it’s a nationwide problem. I can’t tell you how many times I’ve seen nail polish glossing over toenail fungus or a callus or corn, and it continues to perpetuate because no one’s done preventive education,” she said.

“Nurses are educators. We teach people how to take their medications, what the side effects are … a lot of people recognize we’re the healthcare teachers out there. Our mission is prevention. Yes, we’re great at taking care of toenails, but we’re also there to prevent falls or wounds from happening — and we save lives.”

West Side, Big E Are Focused on Milestones

By
Mayor Will Reichelt
Community Spotlight Special Coverage

Community Spotlight

 

Mayor Will Reichelt

Mayor Will Reichelt says planning is underway for West Springfield’s 250th birthday, with anniversary-themed events slated for each month of the year.

Once the 17 days of the Big E Fair begin, Gene Cassidy settles into a routine he’s followed for years now.

His day starts early, with a few minutes in his office in the Brooks Building, before he gets into a golf cart and proceeds to his ‘other office’ in the Hampden County building. Along the way, he stops in with employees in the parking area, the ticket booths, and other areas to get a sense of how things went the day before and what would be expected in the hours to come. And to stress, again, the importance of these 17 days to the overall health and vitality of this West Side institution.

“I remind people that they can make the difference between someone who’s a patron having a good day or a bad day,” he said. “Or I’ll thank them if the day before was pouring rain … I’m very conscientious about making sure that people understand that we make 87% of our revenue in 17 days. The people who work here, they have to know how important their role is to delivering to the fairgoing public an experience that’s at the highest level it can possibly be.”

Before any of that, though, Cassidy checks the attendance numbers for the corresponding day of the fair the year before. That number becomes a target and a tone setter, he explained, adding that, if that day from the year before was a washout due to rain, there probably won’t be any trouble matching or exceeding results and moving toward the ultimate goal of improvement over last year. If it was a really good day the year prior, it’s the opposite.

Which means that, this Big E season, there will be some big nuts to crack.

“I remind people that they can make the difference between someone who’s a patron having a good day or a bad day.”

Indeed, the fair set five single-day attendance records in 2022, starting on opening day, and continuing to the second Friday, the second Saturday (when the single-day record was broken and more than 177,789 came through the gates), the second Monday, and the final day. Overall, the 2022 fair came in just shy of the 17-day record of 1,543,470 set in 2018.

“People really responded to the fair last year, and, overall, the weather was pretty good,” Cassidy said, touching on a subject we’ll get back to in some depth later. “People really came out.”

Those new standards set last year, and maybe some others as well, might fall this year, based on what Cassidy has seen in Wisconsin, which just wrapped up its annual fair, as well as Indiana and elsewhere.

Indeed, while inflation remains high, and Americans have plowed through most of the money they saved during the pandemic and are now taking on more debt, attendance at fairs like the Big E is up, said Cassidy, who believes such institutions provide what people are looking for these days.

“We represent the very best of the American way of life,” he said. “The fair is a place for family and friends and camaraderie. The Wisconsin fair recently ended, and they had amazing attendance, and Indiana is going on now, and they had a few record-setting days. People gravitate toward that which satisfies the need for human interaction. Even in years when we have high inflation, people may sacrifice a trip to Disney or a trip to Boston for a Red Sox game to get together with family at the fair.”

West Springfield at a glance

Year Incorporated: 1774
Population: 28,835
Area: 17.5 square miles
County: Hampden
Residential Tax Rate: $15.54
Commercial Tax Rate: $30.58
Median Household Income: $40,266
Median Family Income: $50,282
Type of Government: Mayor, City Council
Largest Employers: Eversource Energy, Harris Corp., Home Depot, Interim Health Care, Mercy Home Care
* Latest information available

The ramp-up to the Big E is always big news in West Springfield, and this year is no exception. But there are other developing stories, as they say, starting with the community’s 250th birthday in 2024; a major, as in major, upgrade of Memorial Avenue, the mailing address for the Big E and many other businesses; and the opening of the town’s first cannabis enterprises.

Mayor Will Reichelt said planning for the 250th is well underway, with a full slate of events set, starting early in 2024 and continuing throughout the year.

That slate includes a 250th Leap Year celebration on Feb. 29, with specifics to be determined; a 250th Ball, slated for May 18; a parade and block party in June; a golf tournament and 5K in July; a parade in August … you get the idea.

As for the massive, $26 million upgrade to Memorial Avenue, work is already underway, said Reichelt, noting tree-removal work and other initiatives, and it will ramp up considerably over the next few years, bringing improvement to a major thoroughfare, but undoubtedly some headaches as well.

For this, the latest installment of its Community Spotlight series, BusinessWest takes an in-depth look at West Springfield and the many things happening in this community, starting with the annual fair.

 

On a Good Run

Reichelt was among the competitors at the recent Ironman competition that wove its way through several area communities, including West Springfield — and a stretch of the Connecticut River for the swimming part of the competition.

He finished in just under seven and half hours — the top finishers came in at just over four hours — a time that he will look to improve upon next year (yes, he’s already committing to doing it again).

“Even in years when we have high inflation, people may sacrifice a trip to Disney or a trip to Boston for a Red Sox game to get together with family at the fair.”

“I bought an Ironman training guide and wrote my time for this year and my projected time for next year,” he said, adding that the target for the 2024 event is to get under six hours. “If I start training now, I think I can get there.”

The Ironman is one of many events already on the 2024 calendar — or soon to announce official dates — that will take on the flavor of the 250th anniversary, everything from St. Patrick’s Day activities to the block party, which will embody elements of a Taste of West Springfield event that was a staple in the community for many years.

Overall, planning for the 250th is ongoing and will ramp up over the coming months, said Reichelt, noting that, while the actual 250th birthday is Feb. 25, this will be a year-long celebration.

Gene Cassidy

Gene Cassidy says the Big E came close to setting a new 17-day attendance record in 2022, and if the weather cooperates, it might accomplish that feat this year.

By the time it’s over, some major thoroughfares will look considerably different, he said, starting with Memorial Avenue. By this time next year, a project that has been nearly a decade in the making will be well underway, he noted, adding that highlights of the ambitious undertaking, designed to improve traffic flow, will include a reduction of lanes from four to three along a stretch by the Big E, with reconstruction of traffic islands to allow for better turning in and out of businesses along the street. The stretch from Union Street to the Memorial Bridge will also feature a bike lane.

In addition, water and sewer mains are being replaced, and drainage systems will be improved, he said, adding that the project will take several years to complete.

Meanwhile, the city will soon commence work on another major infrastructure project in its downtown area.

It includes construction of a roundabout at the intersection of Westfield and Elm Streets, an area that has seen renewed vibrancy with the opening in recent years of new restaurants and the redevelopment of the former United Bank building into a mixed-use facility called Town Commons. Also planned are improvements to the town common, with new sidewalks, tree plantings, and more.

Beyond infrastructure, there are some new developments within the business community as well, said the mayor, noting that the town’s first cannabis dispensaries — the community was a late entry in this sweepstakes — will be opening in the coming weeks, with one on Memorial Avenue near the bridge, and the other on Riverdale Street.

Meanwhile, the town continues to work with Amherst Brewing on redevelopment of the former Hofbrahaus restaurant just off Memorial Avenue — a project that has been paused with hopes that it can be restarted — and plans are being forwarded, by the same group that redeveloped the former United Bank building, to redevelop a long-closed nursing home off Westfield Street, with housing being the preferred option.

 

Fair Game

As he talked with BusinessWest about the upcoming Big E, the weather, and the overall goal of matching or exceeding last year’s numbers, Cassidy got up from his desk and retrieved his notes from previous fairs.

In deep detail, he has recorded not just the attendance for a given day, but the weather and other factors that might provide deeper insight into those numbers.

Especially the weather.

Indeed, Cassidy goes much deeper than ‘rain,’ ‘sun,’ or even ‘partly cloudy’ to describe a day. Much, much deeper.

“We missed the 17-day record last year by just a little bit, and the reason we missed it is because we had five days of rain,” he explained. “I often laugh, because people will say ‘oh, the weather was great year.’ Well, it was great on the day they came.”

Running back over his notes, Cassidy revealed the level of detail given to cataloguing, if that’s the right term, each day of the fair, so that the numbers can be fully understood and put in their proper context.

“That first Sunday was a threatening mix all day; Monday and Tuesday were heavy rain; Monday, there was sun at 5 p.m.; Tuesday, there was sun at 2 p.m., and it was very hot,” he said, reading from his notes. “The first Thursday, there was heavy rain with lightning all day. And the second Monday was pleasant, but there was serious rain at 5:30, and the people ran out — although we had a very big day that day. We had a big day on the final Sunday, but it was cold and overcast.”

All this serves to show the importance of weather to the success of the fair, Cassidy said, adding that this isn’t lost on anyone at the fair, with everyone involved hoping that the seemingly constant rains that have swollen area rivers and damaged crops of all kinds will take a break in mid- to late September.

Beyond weather, Cassidy also likes to talk about what’s new at the fair, starting with entertainment, but also food.

Regarding the former, the 2023 fair will feature an eclectic mix of musical acts, including John Fogerty, Bachman-Turner Overdrive, Parker McCollum, Jimmy Eat World, Quinn XCII, Chris Young, and many more. As for the food, Cassidy teased that there is an intriguing new addition for the 2023 fair, but he couldn’t announce what it was at the moment.

What he did say is that food has come a long way — a long, long way — over the past few decades, with offerings that go well beyond traditional fair food and also beyond the ‘everything that can possibly be fried’ category as well.

“The food is so different today than it was 20 years ago, when it was more fair food,” he told BusinessWest. “There is a lot of high-quality food here, and it has nothing to do with being fried. The food today is so much more creatively put together. You can get steak tips with real mashed potatoes and fresh vegetables; no one thought you could buy that on a fairgrounds 20 years ago.

“When I first started in the fair industry, there were hamburgers and hot dogs and cotton candy and candied apples; there was a guy who made sausages,” he went on. “Today, the quality of food, the abundance of it, and the diversity of it are significantly different.”

Some of these eclectic offerings are available at a new area that made its debut in 2022 and will return this year. It’s called the Front Porch, and it promotes small businesses, many of them taking their first opportunity to showcase their brand, Cassidy said.

Last year, there were nine or 10 businesses participating, and this year, there will be seven or eight, to provide the ventures with more room to operate, he said, adding that some will be back from last year, while others will not, primarily because they’ve moved on to brick-and-mortar operations.

“It’s a fun way for people to get their feet on the ground,” he said, adding that the Front Porch has become an intriguing and popular addition to the landscape at the Big E — and one more reason for folks to show up in West Springfield … and maybe break a few more records.

BusinessTalk with Chris Kelley, MGM Springfield’s president and COO

By
Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 176: August 28, 2023

BusinessWest Editor Joe Bednar sits down with Chris Kelley, MGM Springfield’s president and COO

Many people vividly remember their excitement when MGM Springfield opened its doors five years ago — as well as the early returns, which didn’t meet the lofty expectations casino proponents had laid out, followed by the pandemic shutdown and, later, a halting return to activity. What people might not realize is that the casino’s last three quarters have been its best, while legal sports betting and an impressive recent slate of music and comedy shows bode well for an even stronger future. On the next installment of BusinessTalk, BusinessWest Editor Joe Bednar sits down with Chris Kelley, MGM Springfield’s president and COO, about rising expectations, how to continually improve the customer experience, the challenge of maintaining a large workforce, and much more. It’s must listening, so tune in to BusinessTalk, a podcast presented by BusinessWest and sponsored by PeoplesBank.

Sponsored by:

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Sr. Mary Caritas Marks a Century of Being a Leader and an Inspiration

By
Sr. Mary Caritas
Features Special Coverage

Celebrating a Legend

Sr. Mary Caritas

Sr. Mary Caritas

Sr. Mary Caritas, SP turned 100 on Aug. 22. It was a day to be celebrated in almost every respect, with one sad note, if it can be called that.

She decided that would be the day she turned in her driver’s license (it expired then, actually), saying goodbye to at least the driver’s seat of the Toyota RAV4 that she had come to know and love, and a small SUV that gave her something she’s never really had throughout her long and remarkable life — a break from being vertically challenged.

“All my life I’ve been looking up at … everything,” said the diminutive (in physical size only) Sr. Caritas, called ‘Little Sister’ by some in the Sisters of Providence over the years. “In that RAV4, I’ve been sitting on top of the world, looking down at everything; it’s been such a blessing.”

When asked why she gave up her license, she said simply, “I’m going to be sad about it, but it’s the time to do it,” and then elaborated a little.

“My balance isn’t as good as it used to be, my gait isn’t what it used to be, and my reaction time isn’t what it used to be; at 100, what do you expect?” she said in summing up her decision.

Maybe her balance is slipping, but her sense of humor, one of many enduring qualities, is as sharp as ever. Indeed, when she talked about her longevity and juxtaposed it against the knee replacement she underwent at age 97, she said matter-of-factly, “I need to live long enough to get my money’s worth.”

No one doubts that she will.

While she has given up her driver’s license and no longer sits on any external boards — “they all want younger boards these days, and I skew the age higher … much higher” — the dynamic Sr. Caritas, born Mary Geary, remains active on many levels.

She’s active with the Sisters of Providence, with matters for the diocese, such as deciding the fate of some of the buildings on the former Brightside complex still to be repurposed; on the golf course — although she’s not playing as much as she once did because others are having health issues — and as a mentor to many.

“The word that comes to me is indefatigable — no matter what the problem is, the task, or the role, she engages herself and gathers others around her.”

And if you watch Jeopardy! or the nightly news, you might catch her in a TV ad reciting the track record of Springfield Mayor Domenic Sarno, who is one of several candidates jockeying for votes in the primary coming up later this month. “I’m not out there holding signs for anyone,” she said, adding that she can’t even vote in Springfield. “But if someone asks me my option of Mayor Sarno, I’ll give it to them.”

And if you keep watching, you might see her in one of several different testimonial ads for car-dealership owner Gary Rome. “Someone put a camera in my face, asked me what I thought of Gary, and they made it into a commercial.”

She’s in these ads, presumably, because she’s extremely well-known and possesses a name, and a voice, that people trust. And when she talks, people listen. She’s earned that trust, and that willingness to listen to what she says, through roughly eight decades of service and involvement in this region, often at the highest levels.

Indeed, over the years, Sr. Caritas has been asked to do lots of things — from managing Mercy Hospital to solving the odor problems at Bondi’s Island. She’s rarely said no — when given assignments by the ministry, she really couldn’t say no — and has almost always succeeded with the task she’s been given.

In many respects, she’s risen to legend status, one of few in the 413.

“Sr. Caritas has been called a legend in her time, and that’s rare,” said Sr. Kathleen Popko, SP, president of the Sisters of Providence, who has served beside her colleague in many capacities for decades now. “From my perspective, she’s coached, inspired, and facilitated the growth of so many people and organizations. Her résumé is astounding, and the number of awards she’s received is amazing. She’s amazing.

“The word that comes to me is indefatigable — no matter what the problem is, the task, or the role, she engages herself and gathers others around her,” Sr. Popko went on, using the present tense, as we will throughout this piece. “Just think of her nickname, ‘Sr. Sludge,’ and how she dealt with the Bondi’s Island odor problem.”

For this issue, BusinessWest sat down with Sr. Caritas on the occasion of her 100th birthday to talk about her life and career — and where she found all the energy that drove her, and continues to drive her today.

Century Unlimited

On the door to Sr. Caritas’s apartment at Providence Place in Holyoke, there’s a cloth sign hanging on a hook that reads “Golf suits me to a tee.” Below that, there’s another sign featuring the ‘golfer’s prayer’ — “May I live long enough to shoot my age.”

She certainly has lived long enough, but, by her reckoning, she’s never accomplished that rare feat. Indeed, golf has always been a hobby, and sometimes a time and place to get work done. But, by her own admission, she’s never been very good, although, as most everyone knows, she has a hole in one to her credit, at the 10th hole at East Mountain Country Club in Westfield.

While golf has been a constant in her life and something that helps capture who she is, to understand her life and what she has meant to the region, one needs to take in another piece of art hanging in her apartment.

It’s a framed print of an editorial cartoon published decades ago in the Republican. It features a much younger Sr. Caritas (she was 66 at the time), then president of Mercy Hospital, sporting boxing gloves and a sweatshirt that reads, “I love a good fight! Knock out Dukakis.” Explaining the image, she said then-Massachusetts Gov. Michael Dukakis was not supporting the state’s hospitals to the degree that she and others thought he should, and the difference of opinion had turned into a real battle.

‘I love a good fight’ is not a phrase one would likely attach to a member of the Sisters of Providence, but in this case, it fits. Sr. Caritas has never backed down from a fight she thought was important, whether that involved the governor, Congress, making sure hospitals in this region were adequately reimbursed for Medicare, or her lengthy battle to win approval from the Massachusetts Department of Public Health for a cobalt unit for cancer treatment at Mercy Hospital.

These fights have earned her a number of honors and accolades over the years — too many to mention in this space — including several from BusinessWest. Indeed, she and the other Sisters of Providence were honored with a Difference Makers award in 2013, while Sr. Caritas was the first to earn a Healthcare Heroes award in the Lifetime Achievement category in 2017. And last year, she was honored by the magazine as a Woman of Impact.

The awards offer testimony to not only her fighting spirit, but other traits as well, from perseverance to entrepreneurship to innovation, all of which were on display in many settings and in many posts, most of which, as she’s fond of saying, were not of her choosing.

One that was of her choosing was nursing school, specifically the one at Mercy Hospital, this after her parents had convinced her that the best path was to become a secretary — she went to school for the vocation, but failed at it (one of the few times she’s really failed at anything) and went into nursing instead.

She started in that field in 1945 at Mercy — she was going to become a nurse in the Navy, but World War II ended before she could enlist — earning $48 a month. After joining the Sisters of Providence, she was sent to St. Vincent’s Hospital in Worcester as a nurse. But upon making her final vows after her fifth year, in 1949, she was sent back to Mercy Hospital, a move she was thrilled with until she learned that, instead of nursing, she would focus on dietary services.

After receiving a master’s degree in nutrition education at Tufts University and undertaking a dietetic internship at the Francis Stern Food Clinic at the New England Medical Center in Boston, she was assigned to be administrative dietitian at Providence Hospital in Holyoke.  After seven years in that role, she was told she would become CEO of St. Luke’s Hospital in Pittsfield, where she would eventually oversee a merger with Pittsfield General to create Berkshire Medical Center. And just as she settled into that role, she was elected to be president of the Sisters of Providence, a role she served for eight years before taking the helm at Mercy Hospital.

“Every role I’ve had in the community is the best role I’ve ever had,” she told BusinessWest. “It always came about as a surprise, and not a happy one. But it always turned out to be the best time I had.”

Sr. Popko agreed.

“She oftentimes says that we understand God’s providence only in the rearview mirror,” she said of her colleague. “She had her plans, and life, meaning God’s providence intervened. She took on those roles, she educated herself and learned how to do them, and then moved on with her own personality, courage, daring, energy, and enthusiasm, and made a success of herself — and them.” 

Still a Driving Force

Sr. Caritas told BusinessWest she had no real plans for her 100th birthday — beyond retiring her driver’s license.

There was a large party for her, hosted by members of the Tremble family (owners of Valley Communications) early this month, and hers was one of the August birthdays celebrated at Providence Place on Aug. 16. Another party will take place at Mercy Hospital in September. It will take the form of a benefit for establishing a nurse’s scholarship in her name.

“How could I say no to that?” she asked rhetorically, noting that she didn’t want a party. “Nursing was my first love.”

And it still is, some 70 years or so since she left that role to become a dietitian. There have been many positions and many settings since, but as she turns 100, Sr. Caritas displays only a few signs of slowing down. Her driver’s license is one, but that won’t keep her from being active, especially with the Sisters of Providence and its many initiatives; she currently serves as vice president of the congregation and is actively involved with the redevelopment of the former Brightside property, already home to Hillside of Providence, a low-income elderly-housing facility, where residents are part of the PACE (Program of All-inclusive Care for the Elderly) initiative.

There are several ‘cottages’ left to be redeveloped, she said, adding that their condition is deteriorating and, thus, their fate is uncertain.

“We’re in the process of selecting an architect, and hopefully we’ll be redeveloping those buildings because the walls and the roofs are fine; hopefully, we can salvage them and recondition them.”

While looking ahead, Sr. Caritas (that name translates to ‘charity’) looked back on her career and her contributions. And while noting that most everything has changed within the broad spectrum of healthcare, the most basic things haven’t. She referred to her first love, nursing, to get this point across.

“When I was at Mercy, I always used to remind people that they’re more important for who they are than what they do,” she said. “Nursing comes from the word ‘nurture,’ and you have to remember that. Even though all kinds of things have changed, the basic belief, and basic sense of being, is all about that — a nurse is not someone who does something to you; a nurse becomes part of you and becomes part of your recovery process and assists you in things you can’t possibly do for yourself.”

And while she talked specifically about nursing, she said this mindset applies to everyone who works in healthcare, a message she has tried to impart to others throughout her career.

Looking back on that career, she noted that, while she has given much, she has received much in return, especially the opportunity to work with others to change lives and improve quality of life. She said she’s grateful for being given the opportunity to use her time and talents in ways that benefit others — even now, at 100 years old.

“God has been good to me in terms of intellectual energy, and my memory is still pretty good,” she told BusinessWest. “There’s some things I forget, but … I’m blessed.”

People in this region — and well beyond, for that matter — can say the same, for her tireless use of that intellectual energy, and all her other gifts, in many consequential ways.

Make a Wish

When asked how she would get around now that’s no longer licensed to drive, Sr. Caritas said she’ll probably rely on Uber.

She joked that area business leader, philanthropist, and good friend Harold Grinspoon — a bit of a legend himself — sent her a check for $500 so she could start her own account, a check she quickly tried to divert Providence Ministries. (He told her to keep the one he sent and wrote another one of the same amount to the ministry). “All I have to do now is learn how to Uber.”

If she ever does need a ride, there are probably … oh, only a few thousand people in that broad ‘friend’ category she could call and ask for a lift. And they would all be willing to help.

That’s the kind of respect — and, yes, love — she’s earned over a century of caring.

Indeed, while Sr. Caritas celebrates a milestone birthday, the region is celebrating her — and what has truly been a wonderful life.

She’ll have to sit in the passenger’s seat now, but she will always be a driving force for progress in this region.

BusinessTalk with Greenfield Community and Economic Development director Amy Cahillane

By
Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 176: August 21, 2023

Joe interviews Amy Chillane, Greenfield’s new Community and Economic Development director

For the past decade, Amy Cahillane has been a key figure in the Northampton community, most notably as the first executive director of the Downtown Northampton Assoc., where she led initiatives to strengthen the vibrancy of the city’s economy and culture. These days, she’s bringing her considerable talents to Greenfield, as that city’s new Community and Economic Development director — and she’s doing so at a time of considerable momentum, challenge, and exciting projects happening downtown. On the next episode of BusinessTalk, Amy talks with BusinessWest Editor Joe Bednar about her passion for communities, why Greenfield is an attractive place to live and work, and more. It’s must listening, so tune in to BusinessTalk, a podcast presented by BusinessWest and sponsored by PeoplesBank.

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It’s Getting Harder to Succeed in This Sector — but That Was to Be Expected

By
Payton Shubrick
Cannabis Special Coverage The Cannabis Industry

What’s Next for Cannabis?

Payton Shubrick

Payton Shubrick says she understood she was entering an increasingly challenging market for cannabis sales when she opened her doors last year.

By the time Payton Shubrick opened the doors to 6 Brick’s Cannabis Dispensary in Springfield last fall, she was well aware of how challenging the business was becoming.

“The market is getting tougher across the board in Massachusetts,” she told BusinessWest. “Gone are the days when you could open a dispensary and just have people lined up. Gone are the days when cultivators could guarantee sales. We’re seeing that you must earn customers’ loyalty and have a competitively priced product and have decent quality to do well in the Massachusetts market.

“I’ve been able to see growth with my company, despite coming online in September of 2022, when prices had just fallen by over 30%,” she added. “So we essentially started with less-than-ideal conditions, but it’s not all doom and gloom.”

Because Springfield set out a long, rigorous process to open a dispensary, Shubruck had time to witness a total evolution of the Massachusetts cannabis market; when she first applied for a permit, the few dispensaries that were open saw an early ‘green rush’ of customers; though the industry’s onerous tax and regulatory burdens and tight profit margins never made it easy money, exactly, the early shops took advantage of a clearly favorable supply-and-demand picture.

“We essentially started with less-than-ideal conditions, but it’s not all doom and gloom.”

By the time Six Brick’s opened, the landscape was considerably more cluttered; prices, as Shubrick noted, were falling; and some shops were struggling.

Those struggles have turned into actual contraction. The first Western Mass. dispensary to close, back in December, was the Source, on Strong Avenue in Northampton, a city with nearly a dozen retail cannabis shops. But it was Trulieve’s departure from the market that will resonate more broadly; the national company closed its three retail locations in the Bay State at the end of June, and is also closing its 126,000-square-foot growing, processing, and testing facility on Canal Street in Holyoke — another city that invested heavily in the new cannabis trade.

“These difficult but necessary measures are part of ongoing efforts to bolster business resilience and our commitment to cash preservation,” said Trulieve CEO Kim Rivers said. “We remain fully confident in our strategic position and the long-term prospects for the industry.”

At the same time, several proposed cannabis facilities in Western Mass., including one planned for the former Chez Josef banquet house in Agawam, have been scrapped due to an inability to secure financing amid dramatically changing market conditions.

“The market is correcting itself,” Shubrick said, reflecting a throughline seen in all states that legalize cannabis. “A lot of folks raked it in during the green rush. But only 24% of cannabis companies in the U.S. are profitable. So you actually have to view this as a business. You can try to increase volume and think that’s going to fix the problems, but the market has matured in a real way. And now, other states are coming online.”

 

High Stakes

Erik Williams, chief operating officer at Canna Provisions (see sidebar on page 20), explained that a typical dispensary needs to take in about $6 million in top-line revenue annually in order to break even. “A whole bunch of companies are not there. They’re sitting on big tax bills without the cash flow, and they’re going to close under the weight of taxes; we’re seeing that right now across the state.”

He also noted the 24% profitability figure, and said anyone coming into the market should be aware of it.

Steven Lynch

Steven Lynch says cannabis businesses doing things the right way and for the right reasons will survive any contraction in the sector.

“There’s a survivability factor we’ve written about from day one. We were the second adult-use-only store in Massachusetts to open [in Lee], and there’s definitely a sort of glory time which happens with every new market, where the demand outstrips the supply, and businesses are just opening their doors and slinging weed,” he said. “They saw pie in the sky, and they have not operated their business with real-time controls over every dollar they’re spending. It’s a tough thing.”

Simply put, too many cannabis businesses in Massachusetts based their business plans on supply-and-demand figures that no longer exist, he added. “There’s a lot more competition. The pie is always growing, but competition is far outstripping the growth of the pie, so you’re seeing price compression.”

Williams agreed with Shubrick that a dispensary must be run like a business from day one, with hard decisions around every dollar spent — or the enterprise will fail.

“If you’re at the point where you have to readjust everything, it’s almost too late,” he said. “Really tough business decisions need to be made across the board. We’re seeing how other companies are failing, and one of the first analyses is what it takes to be profitable as a standalone dispensary. A bunch of different people have run a bunch of different numbers, and when it comes down to it, the consensus is $6 million.”

So, how does one succeed in this environment? Shubrick has some ideas.

“At Six Bricks, we have a clear focus on who the customer is, and we’re focused on our competitive advantages, which are the cannabis experience over transaction, having knowledgeable staff, and being an option for conscious consumers who want their dollars spent close to home,” she explained, noting that the pandemic years taught people the value of spending their money with local businesses, and those lessons could carry over to cannabis. “There’s still a lot of work to be done with social equity for businesses, but consumers can support more a more equitable industry by what brands they support and where they spend their money.”

Erik Willaims

Erik Willaims

“There’s a lot more competition. The pie is always growing, but competition is far outstripping the growth of the pie, so you’re seeing price compression.”

Steven Lynch, director of Sales and Marketing at SaveTiva Labs, agreed about the appeal of strong, local brands.

“I see a lot of parity with when the big-box stores, the Home Depots and Lowe’s, first came to the market. It was great because they had these big stores you could go in, but ultimately, you’re not going to get the service that you’re going to get from your local hardware store,” he told BusinessWest. “So you saw a lot of stores go away initially, but then you saw a whole wave of small mom-and-pops come back into the market because they did things completely from a quality, service, and educational standpoint.

“I think that’s what’s going to happen in cannabis,” he went on. “The people who had no business doing this, or got into it for the wrong reasons, will fall by the wayside, and the people that that are doing it for the right reasons, the right way, are going to continue to flourish.”

 

Blazing a Trail

For Shubrick, ‘the right way’ is reflected in the 6 Brick’s tagline, “people, plant, and purpose.”

“People — how can we help show that cannabis can be a part of an individual’s wellness routine? Plant — how can we make this more of a cannabis experience than a transaction?” she explained. “And lastly, purpose — we want to be a viable option for those in the community that want diversity of price point and diversity of products. I can’t overemphasize the community aspect of it. You can try marketing to pull customers out of Connecticut, but it’s the local community that’s going to show up every day, whether they’re buying a pre-roll or a present for a friend.”

Though Springfield’s licensing process was slow and rigorous, she noted, it’s a plus for operators that there’s not a shop on every corner, as opposed to cities like Holyoke and Northampton that allowed many more licensees.

“We’re the third-largest city and have only four dispensaries; that does prevent what we’ve seen in Worcester and Northampton, which is a race to the bottom in terms of providing a product. Many customers are saying they want it as cheap as possible. The reality is, that hurts the entire supply chain and drives prices so low, it compromises quality.”

That ‘race to the bottom’ has occurred in other states where cannabis was legalized, but the assumption is that the market will eventually level out — and not everyone will survive.

“A lot of folks made the assumption that cannabis companies just open the doors, and people show up,” Shubrick said — and at the earliest-opening shops, like NETA in Northampton, they certainly did. “I never anticipated 100 people show up on day one. I knew it would be a slow climb. The first 15 companies to open their doors, some of them now have to make a comeback because the product wasn’t great or they didn’t have the right people.”

It’s not an unusual track in other business sectors, she added. “Car dealerships and restaurants rise and fall, and the same is happening in cannabis. A lot of naive operators thought they were untouchable because there was this pent-up demand and a thriving black market. But that’s not the case. Couple that with the realities of 280E, and this is not for the faint of heart.”

She was referring to Section 280E of the Internal Revenue Code, which forbids businesses from deducting otherwise ordinary business expenses from gross income associated with the ‘trafficking’ of Schedule I or II substances, as defined by the Controlled Substances Act; cannabis is a Schedule I substance.

According to the National Cannabis Industry Assoc., “federal income taxes are based on a fairly simple formula: start with gross income, subtract business expenses to calculate taxable income, and then pay taxes on this amount. Owners of regular businesses often derive profits from these business deductions. Cannabis businesses, however, pay taxes on gross income. These businesses often pay tax rates that are 70% or higher.”

“Most companies spend a dollar to get $1.10, and you’re ten cents up,” Williams said. “Here in the cannabis business, because of the 280E tax situation, you need to make $3.50 for every dollar you’re spending just to break even. That changes the math in a really big way.”

It also changes the way cannabis companies do business, he added, returning to those earlier thoughts about closely tracking all spending. “Being tight with advertising dollars and watching ROI on every dollar you’re spending is super important.”

Canna’s model, as a vertically integrated company that cultivates product as well as selling it, helps stem those tides, he noted. “Doing cost analysis is a little different, but you also are putting things through your stores at much higher margins. If you’re controlling your supply, you have more control over your business. We’re seeing it happen right now.”

 

Rolling with the Changes

Shubrick said it was worth navigating a thorough licensing process to open a cannabis shop, alongside her family members, in her hometown. “If I wasn’t selected in Springfield, I wouldn’t have picked up and gone to another city or town.”

It’s an example of the thoughtfulness that must accompany entering a very challenging cannabis marketplace in Massachusetts, especially now.

“Companies come in, and they’re not profitable, and they can’t pay back the tax bills. So they have to close,” Williams said, echoing not only the stories of the Source and Trulieve, but other casualties to come. “But their consumers don’t go away; they go elsewhere. So the lesson from the contraction of the market has always been that the survivors are going to do better long-term.”

 

Weathering the Storm: a Resilient Path Forward

By Meg Sanders

 

We are at the precipice of a significant contraction in the cannabis market, not confined to Massachusetts alone, but reverberating across the U.S. and even globally. As business owners navigating this turbulent landscape, it is essential to recognize the imminent challenges — in particular the ones staring down cannabis across the Commonwealth — prepare to face them, and, more importantly, cultivate a hopeful vision for the future.

Let’s begin with third-party vendors, the cogs in the machine that keep your cannabis enterprise running smoothly. We must ask ourselves: how do these vendors weather the storm if they lose 30% of their business suddenly? If a small vendor employing just six people experiences a 20% revenue loss from a key account, what could that mean for the business?

These are not mere speculations. These scenarios are unfolding right now, causing ripples across the industry. It’s a risk-management issue that warrants our immediate attention.

Meg Sanders

Meg Sanders

“It’s critical to identify how exposed our vendors are to the same downturn we’re grappling with, especially if their clientele consists primarily of cannabis companies.”

As we sail through these choppy waters, we mustn’t lose sight of the bigger picture. We need to question the depth and financial security of our vendor base, especially since many struggling businesses might not be able to pay their bills. The aftershocks of such downturns typically hit marketing, advertising, and street teams the hardest. But what does that mean for us, the business owners who rely on these very vendors?

Imagine your vendor pool as a ship’s crew, each playing a vital role in keeping your business afloat. What happens if your vendor’s ship starts sinking? The ripple effect could capsize your own vessel, and that’s a scenario we must guard against.

Indeed, there’s a sense of camaraderie in this industry. We are all in the same boat. When one sinks, we all feel the tremor. It’s critical to identify how exposed our vendors are to the same downturn we’re grappling with, especially if their clientele consists primarily of cannabis companies. The domino effect could span from your point of sale to merchant services, banking, all the way down to your graphic designer.

We have to play the long game, keeping our eyes on the horizon and the changing tides. Let’s envision a situation where you’re sourcing packaging from a company whose revenue is all cannabis-related. What happens when it loses 20% of its business overnight? What does that mean for your buying abilities, purchasing decisions, their supply chain, and your overall purchasing power and profit and loss (P&L) statements?

To chart a path through this storm, we must adopt a three-dimensional approach to risk management, particularly for those selling cannabis products wholesale to local companies. The strain on accounts-receivable departments is a testament to the rising pressures within the industry. Payments aren’t arriving on time, and some aren’t arriving at all, affecting everyone from packaging and label companies to small cannabinoid providers and cultivators.

But amidst this storm, there’s hope. And here’s the silver lining: we can mitigate these risks with strategic planning and robust backup systems. By identifying alternative vendors, knowing their offerings and lead times, we can prepare for any disruptions in our sensitive systems. We need to ensure that we’re not left without a resource simply because we didn’t think far enough down the track.

This contraction isn’t just a challenge; it’s an invitation to innovate. To think differently. To challenge the status quo. Industries shift, technologies evolve, and we must keep pace. We need to think about all the ways a contraction impacts everyone: vendors, landlords, municipalities. The effects when a cannabis company exits a market or closes its doors are far-reaching.

Even as we’re witnessing companies in Massachusetts entering receivership, it’s not a time for despair. It’s a time for planning, for taking stock of where we stand and where we aim to go. Think about your ‘what-ifs,’ and devise your backup plans. Be ready to replace a critical item on your menu if it goes away. Be prepared to find an alternative source if your main provider hits financial turbulence.

This is not a doom-and-gloom narrative. It’s a story of resilience, of weathering the storm, and emerging stronger. It’s about recognizing opportunities amidst adversity, shoring up your P&L, and seizing the chance to negotiate better pricing with your vendors. Many might be willing to partner with you to push through these challenging times in that way, and the worst thing that happens is they say no. That’s just good business practice, no matter the state of the industry. Always make sure you’re checking where every dollar is going, from your expenses to getting quotes on best prices.

So, in these uncertain times, let’s remember one thing: hope is not lost. Even in the face of contraction and economic downturn, there’s an opportunity for those vigilant and ready to adapt. And as we navigate this storm together, we can create a more resilient, more robust industry ready for a brighter future.

We are, after all, in this together.

 

Meg Sanders is CEO of Canna Provisions in Holyoke and Lee.

New Recycling Facility Redefines ‘State of the Art’

By
Frank Antonacci, left, and Jonathan Murray
Architecture Environment and Engineering Special Coverage

What Goes Around…

 

Frank Antonacci, left, and Jonathan Murray

Frank Antonacci, left, and Jonathan Murray have been leading many different constituencies on tours of the MRF in Berlin, Conn.

Frank Antonacci says he’s lost track of how many tours he’s led of the All American Material Recovery Facility (MRF) in Berlin, Conn., which handles material from across the Nutmeg State and Western Mass.

“Suffice it to say, it’s a big number,” said Antonacci, a principal with Murphy Road Recycling, an operator of several recycling facilities, which, in partnership with Van Dyk Recycling Solutions, suppliers of the system’s equipment, opened the state-of-the-art facility in early 2022.

Since then, in addition to overseeing this intriguing operation, which processes more than 50 tons of recyclable material an hour, Antonacci and Jonathan Murray, director of Operations for Murphy Road Recycling, have been leading individuals and groups through the massive facility to show them what goes on there and why this operation is among the most advanced of its kind in the country — and the world, for that matter.

And there have been many different constituencies donning the bright orange vests, hardhats, and audio systems needed to hear and be heard over the din of countless conveyer belts and sorting machinery. These include elected officials, business leaders, public-works crews, press members (including BusinessWest), and, perhaps most importantly, representatives of the companies that buy the recyclables — and many of them have made the trip to Berlin.

What they take in is a facility that was built with three primary goals in mind: to increase the quantity, quality, and purity of recyclables; to provide an innovative and safe working environment; and to have the flexibility to adapt to ever-evolving consumer habits (more on that later) and recycling market conditions.

And more than a year after it opened to considerable fanfare, this MRF is accomplishing all three, especially with regard to the purity of recyclables, said both Antonacci and Murray, noting that this is something that communities, states, and those buying the recovered products are demanding.

“Today’s curbside material isn’t what it was 10 or 15 years ago. Then, it was heavy on newspaper and relatively clean. Today, everyone reads news online and orders everything from the internet. Today’s stream is full of small cardboard boxes and shipping envelopes and requires that we, as recyclers, innovate and change our thinking around the sorting of recyclables.”

The fully integrated system, replete with artificial intelligence and high-tech scanners, is dedicated to the maximum recovery of all recyclable material, with several second-chance mechanisms in place to make sure valuable material doesn’t slip through the cracks, said Murray, adding that the design includes state-of-the-art equipment to target paper, cardboard, boxboard, glass, and five types of plastic.

Elaborating, he said the system first separates paper from aluminum and other metals and plastic and then digs deeper to identify and sort different types of plastic, such as the PET (polyethylene terephthalate) used to make water and soda bottles, and HDPE (high-density polyethylene) used to make food and beverage containers, shampoo bottles, cleaning-product bottles, and similar products.

“The optical scanners are trained; they’re learning all the time to know what the makeup of a PET bottle is,” Murray explained. “If a scanner’s job is to pick PET bottles, it knows it by reading the makeup of the bottle. Everything else travels on to the next optical scanner, which may be looking for HDPE or milk jugs or laundry detergent bottles; it scans for those and shoots those out.

Murray Road Recycling’s MRF

Frank Antonacci says Murray Road Recycling’s MRF has “moved the industry forward a generation” with its design.
Staff Photo

“The scanners are actually looking for the makeup of what’s in that material,” he went on. “It shoots a blast of air to kick it out or leave it in, and they’re trained at the factory and adjusted, so if we’re seeing a higher level of PET in the mix than HDPE, we can make adjustments so it will recognize that quicker and make sure we’re getting it all out.”

For this issue, BusinessWest toured the massive facility in Berlin and talked with Antonacci and Murphy about this operation, the evolving recycling market, and how the Berlin MRF redefines what would be considered state-of-the-art in this industry.

 

Leaving Little to Waste

Murray calls it the “Amazon effect.”

That’s a term he and others in this industry use to describe the influence of that giant corporation on life in general — and especially the world, and business, of recycling.

“Today’s curbside material isn’t what it was 10 or 15 years ago,” he noted. “Then, it was heavy on newspaper and relatively clean. Today, everyone reads news online and orders everything from the internet. Today’s stream is full of small cardboard boxes and shipping envelopes and requires that we, as recyclers, innovate and change our thinking around the sorting of recyclables.”

And these sentiments effectively and concisely explain what the All American Material Recovery Facility is all about — innovation and changing how people think about recycling and waste-disposal diversion.

“We took a significant amount of risk and leveraged our expertise, as well as a very strong team, to develop what we have here.”

The facility, and the roughly $40 million invested in it, represent another entrepreneurial venture, and gambit, undertaken by the Antonacci family, which was recognized by BusinessWest as its Top Entrepreneurs in 2018 for their creation of an eclectic and highly successful stable of businesses, with ‘stable’ being one of the operative words.

Indeed, this large and impressive portfolio includes a horse farm, Lindy Farm in Somers, which has bred and trained a string of champion trotters; Sonny’s Place in Somers (named after the patriarch of the family, Frank’s grandfather, Guy ‘Sonny’ Antonacci), a huge and continually growing family-entertainment venue; GreatHorse, the high-end, horseracing-themed private golf club created on the site of the former Hampden Country Club; and Murphy Road Recycling.

All of these ventures represented considerable investments and risks, Antonacci said, adding that the MRF in Berlin is no different.

“You’ll see many of the same themes throughout this facility as you would at our other operations,” he explained. “We took a significant amount of risk and leveraged our expertise, as well as a very strong team, to develop what we have here.”

The company looked at a number of recycling facilities starting in 2018 and made the decision to buy the Berlin facility in 2020, at the height of COVID.

“It was a considerable risk and investment at that point,” he went on. “But we knew that there would be life after COVID, and we believed that the region really needed a reliable, scalable solution to handling the growing amount of single-stream material.”

the primary goals for the new MRF

One of the primary goals for the new MRF is to increase the quantity, quality, and purity of recyclables for sale to companies that will use them to make new products.

By single-stream, he noted that recyclables from businesses and consumers come with various materials mixed together, often with materials that shouldn’t be placed in recycling bins but are anyway — from batteries to electronic devices.

This venture represents the expansion and modernization of an existing recycling facility, Antonacci said, adding that everything about the facility is state-of-the-art, a phrase he used early and often in this conversation, because it’s certainly warranted.

“We integrated tried-and-true mechanical separation though screens with optical technology,” he noted as he talked about what is really the heart of this operation. “We have machines that are optically looking at the material to polish any contamination or any mixture of different grades of recycling, and that’s done through highly advanced camera systems with artificial intelligence.”

 

Reading Material

The facility handles recyclables from roughly 100 communities in Connecticut and Western Mass., Antonacci explained, noting that materials from many communities in the 413 are aggregated and then brought to Berlin for processing. Overall, it handles upwards of 1,000 tons of material per day, a huge jump from the 350 tons a day handled by the largest facilities in the area prior to the opening of the MRF in Berlin.

Beyond size and scope, this facility stands out for many other reasons.

Indeed, the operation employs a dozen optical scanners that can identify and separate materials based on their chemical composition, and utilizes robotics and AI to perform additional quality control.

“The quality of the material that we’re able to glean from the blue-bin mix is really remarkable,” Antonacci said. “Leveraging our expertise and that of Van Dyk Recycling Solutions, we’ve moved the industry forward a generation with the design of this plant, based not only on the scale, but on the quality of the materials coming out of here.”

As they were developing the Berlin facility, those at Murphy Road toured a number of recycling operations in this region and other parts of the country, Murray said, with an eye toward adopting best practices and technologies. But there are some things being done here that would be considered unique and groundbreaking, he went on.

This includes a dual-feed system set in parallel lines, Antonacci said, adding that this is a different approach to preparing materials for final processing. Other innovations include the picking stations, where employees handle quality control, which are enclosed in dust-controlled, climate-controlled boxes which place a premium on worker comfort and safety.

“We went through a painstaking effort of keeping people away from places that could harm them,” he told BusinessWest. “We invested heavily in automation to further increase the safety and productivity of the facility.”

Beyond these safety features, the facility was designed to effectively handle ongoing evolution in consumer habits and thus the recycling stream. As he talked about this and pointed to the streams of paper moving along conveyer belts, Murray noted that, despite declines in readership, a large amount of newsprint still winds up in recycling bins.

“We took a significant amount of risk and leveraged our expertise, as well as a very strong team, to develop what we have here.”

But these same bins are being increasingly dominated by both cardboard packaging — that aforementioned ‘Amazon effect’ — as well as myriad kinds of plastic, aluminum, and tin cans.

Overall, the bins are cleaner than they were years ago, he went on, adding that the overall quality of the end product — what is ultimately sold to companies to make new products — is a function of how effectively the different materials, especially the many types of plastics, are separated.

And this is where the All American MRF stands out from other facilities.

Elaborating, Antonacci said this facility’s sorting capabilities extend to polypropylene, used to make everything from yogurt containers to margarine tubs; from Dunkin’ Donuts coffee cups to the packaging for to-go food products.

“This is something that has historically been hard to separate,” he explained. “But we have both the optical technology to look for polypropylene number 5, which those containers are made out of, and there’s also a laser on our optical machine that enables us to see those black plastics — the to-go containers — which most facilities can’t.”

 

Bottom Line

There are ever-larger amounts of polypropylene #5 winding up recycling bins, and the ability to separate it from everything else is becoming increasingly important, said Antonacci, adding that this is just one of the reasons why he and Murray are giving so many tours these days.

People want to see what separates this facility from most others — with the emphasis on separates. It not only represents state-of-the-art in this industry, it defines it.

For a Decade, the MH Group Has Helped Put People to Work

By
Founder and CEO Nicole Polite
Special Coverage Women in Businesss

Applying Lessons

Founder and CEO Nicole Polite

Founder and CEO Nicole Polite

As the staffing and recruiting company she launched in 2013, the MH Group, celebrates 10 years in business, Nicole Polite explained that her path wasn’t always in the employment world. But she quickly found a passion for it.

After serving as an MP in the Army National Guard, she thought her natural progression would be into law enforcement, as a police officer or a correctional officer.

“My dad was working at Ludlow at the time, so I went to my dad and said, ‘can you give me a job?’ — like all kids do with their parents. And he did just that,” she recalled. “But after I received the job offer, I was having second thoughts. It was third shift; I didn’t want to do that. I was a new mom as well. And it just wasn’t the career path I thought I wanted to take.”

So she shifted gears and landed a job at MassMutual, which was a valuable experience — starting right at the interview process, when the woman who perused her résumé said something that has stuck with Polite to this day.

“She said, ‘you know what? You’re not qualified for the position we have open in my department. But I’ll tell you what I’ll do — I’ll get you the job interview.’ At 23, that was the first time someone told me I wasn’t qualified, but that was good to hear because she was correct. And it really stayed with me.”

It also spurred her to study and prepare rigorously for that interview, and she got the job. “And that led to a 10- or 11-year career. It completely changed my entire life.

“My takeaway from that was that someone sat at a table I was not privy to and put my name forward and granted me the opportunity to have a career that lasted all those years. So that was fuel to my fire, my passion in life. I want to go back and be able to do the same thing for other people.”

“That was fuel to my fire, my passion in life. I want to go back and be able to do the same thing for other people.”

While volunteering at a MassMutual Community Responsibility event at Western New England University, helping high-school students through a Junior Achievement employment-awareness program, Polite (then known as Nicole Griffin) was assigned the task of mentoring a young man and teaching him how to interview for jobs. After two days of career and interview prep work, she invited him back for a mock interview. And he showed up wearing jeans and a baseball cap.

“After the interview, I said, ‘you did a very good job, but you’re not really dressed appropriately for an interview, especially with a baseball cap on.’ And I’ll never forget his response. He said, ‘look, my parents never worked. I don’t even know what that looks like.’ And that was like a dagger to my heart because that was his reality. And I said, right then, ‘I’m going to help people in those situations and see how I can make an impact.’ And it grew, like a burning desire.”

While working at MassMutual as a financial underwriter — providing analysis, sales, and marketing for the company’s products — she became a certified interviewer and started a small nonprofit on the side, called the ABCs of Interviewing. There, she consulted with other nonprofits, companies, and individuals, helping them with interviewing skills.

From there, she made the leap into entrepreneurship, leaving MassMutual in 2013 to open Griffin Staffing Network.

The company would change names twice: the first to ManeHire about five years later. As she told BusinessWest at the time, she wanted a new name that evoked lion imagery. “I like the lion — it represents strength and courage and resilience, and those are some of the key components you need when you’re looking for employment.”

Nicole Polite (top) with Kassaundra Woodall, senior recruiting manager at the MH Group.

Nicole Polite (top) with Kassaundra Woodall, senior recruiting manager at the MH Group.

Today, she still likes the name, but explained why a change to the MH Group was in order. “It was fierce — empowering women. That was the goal of the name with me and my marketing partner when we came up with it. But it lost some of its brand and became a little confusing. People were confusing the name as ‘man hire,’ like a job-ready type of employment firm, and we are the complete opposite; about 70% of our jobs are direct-hire. So we dropped that and just go by the initials, which is the MH Group.”

 

Getting to the Next Level

The MH Group’s recruiting and staffing work focuses on the nonprofit sector, as well as healthcare, insurance, and manufacturing.

But it does so in a way that ensures that matches stick, and that goes back to Polite’s experience landing that job at MassMutual. For instance, the firm conducts workshops to teach people how to interview for a job.

In addition, “I teach my staff and train them that, when you have someone in front of you, you mentor on the spot. And that’s from entry-level to C-level positions. If you have the opportunity to tell someone about something that could be answered in a better way, or just give them some pointers on their résumé, things to highlight and things not to highlight, just mentor it on the spot.

“And then, in terms of employers, we do a lot of vetting up front. So you’re getting an applicant from the MH Group that has been highly vetted and has had some training as well.”

That’s especially important at a time when employers in most sectors are struggling to attract and retain sufficient talent — which gives job seekers more leverage than normal.

“I have clients that have really met the needs of the applicants and employees. They’ve changed their benefit structures, their PTO time, their flexibility, their hybrid schedules. I would say employers are really trying their best to meet the needs of the workforce.”

“It’s a very competitive market — and the workforce knows that it’s competitive. So they’re asking for things they’ve never asked for before. They’re pushing back in ways they’ve never pushed back before; they’re really going through benefits, medical benefits, with a fine comb to make sure it’s something that is valuable to them and their family structure.

“But I will say my clients are meeting their needs,” she added. “I have clients that have really met the needs of the applicants and employees. They’ve changed their benefit structures, their PTO time, their flexibility, their hybrid schedules. I would say employers are really trying their best to meet the needs of the workforce.”

As part of its 10-year anniversary, Polite is also launching the MH Cares Foundation, which uses the power of mentorship to help underserved populations achieve fulfilling careers.

“Most people in HR and CEOs can understand this: you post a job position, and you have hundreds of applications — and, out of those applications, maybe a few that qualify. And you wonder, ‘why is that? Why do so many people apply for positions that they may not be qualified for?’”

Playing off the saying ‘no child left behind,’ Polite sought to create a program where no job seeker is left behind. So the foundation matches job seekers with mentors, using a curriculum to help that job seeker get to the next level.

“It’s more than just applying for a job. We’re going to put you with a mentor who can actually mentor you through that process, whether it be helping you with your résumé or coaching you on interviewing,” she explained. “And then, the second component is giving you volunteer work within that industry or that field and having you work there so that you can gain some experience. The goal is to make sure that we are meeting job seekers where they’re at and bringing them to the next level.”

The foundation will host a kickoff event this fall, and in the meantime, volunteers who want to be mentors to job seekers can visit www.mhcaresfoundation.org and register to be a volunteer.

 

Deepening Roots

Polite notes that “a core philosophy for the MH Group is the need for both roots and wings.”

For her, those roots run deep in Springfield, as her great-great-granduncle was Primus Parsons Mason, a Black entrepreneur and real-estate investor who is most well-known as the namesake of the city’s Mason Square neighborhood.

Active in the community, she has served the Greater Springfield region on multiple nonprofit boards, such as the YWCA of Western Massachusetts, the MassHire Hampden County Workforce Board, the United Way of Pioneer Valley’s Dora D. Robinson Women’s Leadership Council, and the Pioneer Valley Planning Commission council. She has also served as a business advisor at the Entrepreneurial & Women’s Business Center at the University of Hartford.

MH Group

Nicole Polite says the MH Group name more clearly conveys the firm’s purpose than its former name, ManeHire.

Because of her success to that point, she was selected to BusinessWest’s 40 Under Forty class of 2014 and then won the magazine’s Continued Excellence Award (now known as the Alumni Achievement Award) in 2017. And she was only getting started.

“This has been extremely gratifying — for one, to take such a huge risk of leaving a very good company with great benefits, great structure, great financial standing, and to launch out into my own business … and then just to still be here for 10 years, is very gratifying,” she said.

The MH Group provides staffing for companies from Massachusetts to Washington, D.C., and Polite believes it has the potential for a national reach. But locally, she wants to continue outreach to the community, including partnering with local schools to teach job-readiness training.

“We can reach them at a younger age. Then, one day, I hope this will be a part of the curriculum … because job readiness and career readiness is something that’s taught, but not taught the level it should be.”

Polite told BusinessWest she attended its annual 40 Under Forty event this past June and felt emotional seeing many people her company had helped to find employment.

“That’s very gratifying to see them all really excel within their fields. We have people we placed in entry-level positions that are now in management, vice presidents, heads of corporate compliance. It’s amazing to look back and to see people’s growth.”

She’s also encouraged by the many employer clients who have remained partners since the day she opened her doors.

“That makes my heart extremely happy. They’ve grown into family,” she said. “It’s like a dream sometimes — like, pinch me, I’m dreaming. I didn’t think this dream of mine could grow to where it’s at today.”

JoinedForces Provides Assistance to Those Who Have Served

By
Oliver Layne
Construction Special Coverage

Bringing It Home

 

Oliver Layne

Oliver Layne stands in ‘his’ bathroom, with a walk-in shower, one of many projects undertaken by those involved in the JoinedForces program.

Oliver Layne has come to call it “my bathroom.” Others in his family simply call it “dad’s bathroom,” for reasons that will become clear.

This is the small half-bath in his home on Border Street in Springfield, the one that was renovated to include a walk-in shower, something that became a necessity for Layne, a U.S. Air Force veteran of both Gulf wars, after he was afflicted with a rare muscle disease whereby his immune system attacks his muscles. This disorder made lifting his leg to get into a bathtub difficult, if not impossible.

“My day starts off with my cane, by the middle of the day I’m in my walker, and by the evening I’m in my wheelchair — I just get more and more tired throughout the day; I’m very limited in what I can do,” said Layne, whose bathroom renovation was realized through the JoinedForces program administered by Revitalize Community Development Corp. (CDC) and funded by grants from the U.S. Department of Housing and Urban Development and its Veterans Home Modification Program.

That well-thought-out name speaks volumes about this unique program and the many people who are involved in it.

For starters, the name helps convey that this is a program designed to assist veterans, many of whom are disabled and need help to stay in their homes or, in the case of Layne, live more comfortably in their home.

“Veterans are a big part of our focus,” said Colleen Loveless, president and CEO of Revitalize CDC, noting that the nonprofit agency also serves low-income families with children, the elderly, and individuals with special needs through initiatives such as its #GreenNFit and Healthy Homes programs. “Many are looking to age in place in their homes, many have injuries from their service, and this has become a particular focus of ours.”

“Veterans are a big part of our focus. Many are looking to age in place in their homes, many have injuries from their service, and this has become a particular focus of ours.”

The JoinedForces name also hints at how these projects to assist veterans are acts of collaboration, often involving a number of parties, including those at Revitalize CDC, other agencies focused on veterans and their needs, contractors, and area businesses.

That was certainly the case with Layne’s project, and also a coordinated effort to assist Ron Schneider and his wife, Cara, during a recent Volunteer Day initiative.

Schneider, a Vietnam War veteran now battling cancer he attributes to his exposure to Agent Orange, made his living as a general contractor. But his declining health left him unable to undertake many of the projects around the home that would have been so simple years earlier.

Fast-forward (we’ll fill in some details later) to this past spring, when there were two major projects at the Schneider home — one undertaken by a contractor to replace windows that had ceased to open easily, if at all, and the other involving an army (not a term we use loosely) of volunteers from Revitalize CDC and Home Depot to tackle a number of projects, from repairing the patio and driveway to building a shed and undertaking some landscaping work. New doors, also part of the mix, were put on earlier this month.

“All of this has taken a lot of pressure off me because I can’t do things around the house — I’m not physically able to do some of the projects that they handled,” Ron said. “And they did it in a day’s time because they had almost 100 volunteers.”

Suzanne Larocque (left, with Ethel Griffin)

Suzanne Larocque (left, with Ethel Griffin) says projects range from roof repairs and replacements to installation of handicap ramps and bathroom renovations.

These comments from Layne and Schneider effectively convey the sentiments of those veterans and their families who have had work done on their homes. As for those doing the work, they say there are many types of rewards, but especially the pride and satisfaction that come from helping those who served their country.

“I love it — it’s not about the money,” said Frank Campiti, a general contractor who handles many projects for Revitalize CDC and its #GreenNFit, JoinedForces, and Healthy Homes programs. “I get a lot of satisfaction from helping these veterans. We do everything we can to make their lives better with whatever their repair is.”

Myles Callender, who served as construction manager for Revitalize CDC before starting his own construction company with his brothers, and still handles projects for the agency, agreed.

“Some of these projects may not look big in terms of their size and scope,” he said. “But they make a huge difference in the lives of these veterans. It’s very rewarding to help improve the lives of those who have served.”

“All of this has taken a lot of pressure off me because I can’t do things around the house — I’m not physically able to do some of the projects that they handled. And they did it in a day’s time because they had almost 100 volunteers.”

For this issue and its focus on construction, BusinessWest takes an in-depth look at the JoinedForces program and its efforts to help veterans and their families feel more at home — in all kinds of ways.

 

Building Hope

Layne told BusinessWest that his physical issues started several years after he returned from his service in the Gulf and started his professional career, working first at a college and then for AT&T. He suspects the disorder results from exposure to contamination at two bases where he served — Wurtsmith Air Force Base in Michigan (now closed), and Sheppard Air Force Base in Texas.

He started noticing that he was having trouble walking straight and that his hands didn’t work right.

“My body just didn’t work the same as it did before; I couldn’t run anymore, I couldn’t walk long distances,” he recalled, adding that it took doctors more than two and a half years to figure out what was wrong with him.

In 2017, he was officially diagnosed with a muscle disorder, and it was determined that there was no known cure. All medication was stopped, he said, adding that he is doing what he can to try to slow down or mitigate the condition’s progress, though diet and physical therapy, for example.

He has soldiered on, but increasingly has struggled with everyday tasks. He walls with a significant limp and can no longer navigate stairs — the Veterans Administration put a stair lift in his home — and has trouble getting in and out of the shower.

Ron and Cara Schneider (center, with their daughter, Bridget, between them)

Ron and Cara Schneider (center, with their daughter, Bridget, between them) celebrate the work done on their home in Ludlow by dozens of volunteers.

He became aware of Revitalize CDC and filled out an application for assistance late last fall. “That was on a Monday, and on Wednesday, I got a call; they were asking me what I needed done in my home and how they could help.”

Layne’s bathroom renovation is, in many ways, typical of the projects undertaken through the JoinedForces program, said Ethel Griffin, vice president of Community Engagement for Revitalize CDC.

She told BusinessWest the agency works with other veteran-related organizations on outreach to help make sure people know about JoinedForces and the agency’s other programs and encourage them to apply for assistance.

“Our work with veterans is important because they’ve served our country, and they deserve to have comfort in life,” she told BusinessWest. “A lot of our veterans are very old, and it’s amazing to see the conditions they are living in. We do spend a little more time and bit more money with the veterans — because they deserve it. This program gives us the feeling that we’re helping our country as well, even though we’re helping individuals; it’s our time to serve.”

Larocque agreed. “I don’t come from a military background at all, so meeting these veterans has been such a great experience. They’re so appreciative, and it’s been really rewarding to work with them.”

Since Loveless came on board in 2009, the agency has assisted between 200 and 300 veterans across the state, with the vast majority of them living in the 413, and veterans’ homes are included in all Revitalize CDC programs, including #GreenNFit.

Ron Schneider

Ron Schneider is grateful that JoinedForces has taken pressure off him because the volunteers completed projects he no longer can.

The projects vary in size and scope, said Suzanne Larocque, HUD project manager for Revitalize CDC, adding that they range from roof repairs and replacements to installation of handicap ramps and bathroom renovations like Layne’s.

Other projects have involved removal of asbestos from one home, installation of a drainage system and dehumidification system to relieve water issues in a basement, and many window-replacement initiatives. Meanwhile, the agency is undertaking more projects to replace heating systems with more modern — and green — systems.

Revitalize CDC hires licensed contractors to handle such work, obviously, Loveless said, adding that there is an emphasis on hiring minority- and women-owned firms. In some cases, the agency can get materials and labor donated, as it did for a veteran in Springfield who needed a new roof.

 

The Battle Is Joined

Ron Schneider, who served in the Army as an engineer building roads, tells a story somewhat similar to Layne’s, one of returning from service, launching a successful career, and then being beset with health problems that left him unable to do things around the house.

“I’m disabled, and I just can’t do much physically,” he said, noting that, in addition to his cancer fight, he has fought other health battles over the years.

As Ron’s condition deteriorated, and as needed work at his home on Prospect Gardens in Ludlow piled up — as noted earlier, many of the windows, originally installed in the 1940s, would no longer open or close easily, if at all — the Schneiders filled out an application for assistance through the JoinedForces program.

“Ron was a contractor for more than 40 years; these were all projects that he’s been hired to do over the course of his career that he can no longer do. For him, it was challenging; it was hard for him to be able to say ‘yes, I need help.”

That was prior to COVID, Ron said, adding that they received a call from Larocque early this year, and work commenced in phases this spring.

The first phase was replacement of the windows in April, work handled by a local contractor. Then, in May, Revitalize CDC joined forces (there’s that phrase again) with Home Depot, for a massive Volunteer Day effort at the home.

Cara Schneider put the improvements and what they mean to her husband and the rest of the family in their proper perspective.

“Ron was a contractor for more than 40 years; these were all projects that he’s been hired to do over the course of his career that he can no longer do. For him, it was challenging; it was hard for him to be able to say ‘yes, I need help,’ she said. “And then, to have these people come in and do it in a way that was respectful and that made our lives so much more functional and for him not to have to worry about these things while he’s going through treatment … it took all the stress off. And he’s able to open windows now.”

These sentiments hit at the true mission of the JoinedForces program, said Campiti, who has worked on dozens of projects over the past several years.

He said most are not large in scope, but can be rather involved. And in many cases, these are projects most contractors would pass on because of their degree of difficulty, the conditions in the home, or their small margin for real profit.

“I get involved with projects that other contractors look at, but they don’t even call them back,” Campiti said, adding that, in other cases, contractors will take on the work, but at a cost beyond what the veteran is willing or able to pay.

Such was the case with Layne, who said he looked into renovating his bathroom and installing a walk-in shower, but the cost was prohibitive. A friend, also a veteran, told him about Revitalize CDC, and he applied for assistance to undertake the bathroom renovation.

He was hesitant to install a walk-in shower in his main bathroom due to concerns about impact on the resale value of the home, but, after consultation with Campiti, was convinced that his half-bath, also home to his washer and dryer, could be renovated and outfitted with such a shower.

This was a fairly complicated project that involved moving the laundry equipment to the basement, constructing the shower, and redoing the floor, he went on, adding that it took several days to complete.

Overall, he’s working on two or three projects a month, most of them addressing the accessibility issues that many veterans face, whether it involves a bathtub, stairs, or a backyard deck.

“We do a lot of railings and grab bars in places that would be considered non-traditional,” he explained. “We put them in places beyond the bathroom, like with a person walking out to their patio; they can’t step down anymore.”

He stopped short of calling this work fun, but reiterated that it is gratifying on many levels.

 

On with the Fight

Returning to this concept of ‘his’ bathroom, Layne injected some needed background.

Indeed, he said he has four daughters, including twin 14-year-olds who still live at home.

“Bathroom time is extremely difficult to get,” he said with a laugh, adding that he obviously has to share his facility, which has actually become quite popular.

“They’ll say, ‘can I take a shower in your shower?’” he said of his children, adding that he used to ask why. “They say, ‘because it’s big; you can move around in there.’”

That’s because Campiti made it big enough to put in a chair, which is necessary, as Layne is prone to falling because his legs don’t move as they should.

It’s quite unfortunate that Layne, a veteran of two wars, needs this walk-in shower with all that room in it. But he — and his daughters, for that matter — are fortunate to have it.

And it was made possible by an agency with a name that truly says it all.

 

New England Farm Workers’ Council Transitioning Out of Real Estate

By
The Paramount Theater/Massasoit Hotel
Commercial Real Estate Special Coverage

Divesting the Portfolio

The Paramount Theater/Massasoit Hotel

The Paramount Theater/Massasoit Hotel complex is one of several properties in the New England Farm Workers’ Council portfolio now under agreement.

 

 

 

Dan Knapik says that, when he became executive director of the New England Farm Workers’ Council in the summer of 2021, he found a multi-faceted nonprofit agency at what amounts to a crossroads and in need of what he called a “kick start.”

That was especially true when it came to the agency’s broad commercial real-estate portfolio, assembled over the preceding decades with the goals of housing programs, spurring economic development, and creating revenue streams — goals that, in most cases, have not been realized.

“We needed to go aggressively to rent out what we could or sell it,” said Knapik, adding that, in most all cases, the latter option is being pursued. “We put a multi-pronged strategy together; we started renting what we could rent and sell what we couldn’t rent.”

Indeed, a few of the agency’s holdings were sold prior to his arrival, in the winter and spring of 2021, including 1600 Main St. in Springfield (the International Bier Garten), sold for $700,000; and 297-299-301 Main St. in Holyoke, sold for $150,000.

The selloff has continued into this year, with 276 Union Ave. in Bridgeport, Conn. (a rooming house) selling for $656,000 in January. Then, in May and June, the property at 21-23 Hampden St., home to the Shakago Martini and Piano Bar, sold to an Alabama-based real-estate company for $240,000; 2345 Main St. in Springfield sold for $85,000; 203-205 High St. in Holyoke sold for $134,900; 211-213 High St. went for $134,000; and 211-213 High St. sold for $49,900.

“We needed to go aggressively to rent out what we could or sell it. We put a multi-pronged strategy together; we started renting what we could rent and sell what we couldn’t rent.”

There are several other properties now under agreement, Knapik said, including the 1610 Main St./20 Fort St. complex, home to the Student Prince restaurant, and the Paramount Theater/Massasoit Hotel complex further north on Main Street, a historic property that has long been considered a key to revitalization of the downtown. And the agency is actively showing other properties, including 32-34 Hampden St. in Springfield and 217-225 High St. in Holyoke.

“I am determined to divest the portfolio,” Knapik said, adding that doing so gives the agency, an affiliate of Partners for Community, capital to pay down debt, while also freeing it from some heavy tax burdens — nearly $70,000 each quarter for the properties in Springfield alone — and debt service, an estimated $200,000 per quarter. And it will provide the agency the time and opportunity to focus on its mission.

Overall, this is not a particularly good time to be selling real estate, said Knapik, adding that higher interest rates — and they keep getting higher to due to actions by the Federal Reserve to cool the economy and tame inflation — have made this assignment more challenging.

The nonprofit’s board voted last fall to sell the remaining 13 properties in the portfolio, including 1666-1670 Main St. in Springfield.

“It’s been difficult — the Fed’s interest-rate environment has been less than favorable for us, and some of the buildings were not in great shape,” he told BusinessWest, noting that interest rates are more than five points higher than they were just a year or so ago.

But given these market conditions — and the state of the some of the properties — he is not unhappy with the results to date.

“I haven’t been horribly displeased,” he went on. “We’re obviously not selling class-A real estate, but we haven’t lost money on the sales, either.”

For this issue and its focus on commercial real estate, BusinessWest takes an in-depth look at the council’s active efforts to shift away from the commercial real-estate business, what this means for the agency, and what it might mean for area communities, especially Springfield and its downtown.

 

Setting Sale

When BusinessWest toured what is known colloquially as the ‘Fort building’ or ‘Fort complex’ not long after it was purchased by the Farm Workers’ Council in 2010, then-President and CEO Heriberto Flores (he still holds those titles at the agency) talked enthusiastically about bringing new life to the vast spaces in the multi-story complex that had been vacant for years, and, in many cases, decades, with some of the abandoned offices still featuring brightly colored shag carpeting.

The Fort complex

The Fort complex is one of several properties in the New England Farm Workers’ Council portfolio now under agreement.

Today, they are still vacant — the Student Prince and the Latino Economic Development Corp. (an affiliate of the council) occupy the ground floor, and they are the only tenants in the complex — and those quiet spaces speak volumes about why the Farm Workers’ Council is divesting itself of its real-estate portfolio, Knapik said, adding that, in many respects, the properties have been underperforming and losing money for several years.

Recapping the history and state of this portfolio, Knapik said the properties were acquired with good intentions and solid goals in mind, but most of the promise has not been realized.

“They weren’t really aggressive about seeking out new tenants, and there was a lot of deferred maintenance on the buildings,” he explained. “A lot of the buildings were bought years ago to put programming in, and one of the mistakes I think the council made was, when programming lost funding, for whatever reason, buildings should have been sold off, and they weren’t. They were held onto for a variety of reasons, and they then became big liabilities, and this is where a lot of the accumulated debt came from.”

“A lot of the buildings were bought years ago to put programming in, and one of the mistakes I think the council made was, when programming lost funding, for whatever reason, buildings should have been sold off, and they weren’t.”

This fact was certainly not lost on the nonprofit’s board, which voted last fall to sell the remaining 13 properties in the portfolio, he said, adding that many have been, and most of the rest are under agreement.

That list includes several properties in downtown Springfield, including 1666-1670 Main St., 1655 Main St. (the Board of Trade Block), 1628-1640 Main St., and 1618-1624 Main St.

As noted earlier, that includes the Fort complex, which is under agreement to a group led by Peter Pan Bus Chairman and CEO Peter Picknelly, one of group of local entrepreneurs who stepped in to rescue the Student Prince several years ago when closure seemed imminent.

It also includes the Paramount and adjoining Massasoit Hotel, a complex that has been envisioned as a multi-use property, with the theater being a host for events and the hotel being converted for housing.

“We have a purchase-and-sale with a development group that goes back pre-COVID,” Knapik explained. “We continue to work with that development group for a project; we continue to talk with them, and I’m hoping that, within the next 60 days, we can execute a final agreement.”

Shakago Martini & Piano Bar

The property at 21-23 Hampden St., home to the Shakago Martini & Piano Bar, is one of several already sold by the New England Farm Workers’ Council.
Staff Photo

He noted that the same rising interest rates that are making sales of these properties more challenging is driving up the cost of redevelopment of the Paramount/Massasoit Hotel complex.

Overall, the sale of the properties in the portfolio should provide the council with some needed capital, Knapik noted, adding quickly that there is substantial debt to pay down.

“There’s about $4 million in total equity after all the mortgages are paid, but there are some legacy debts, some operating debts that Farm Workers’ has accumulated over the years, and we’re hoping to clear that off,” he said, adding that many of the properties do not have mortgages.

 

Bottom Line

Meanwhile, by getting out of the commercial real-estate business, the council can concentrate its full energies on its programs, and there are many working in several different realms, from economic development to housing to youth and education.

And it can develop and execute the next strategic plan.

“This will allow the council to take a breath and figure out to position itself for what it wants to do in the future,” he said. “We’ve been in business for 52 years, responding to the needs of the community. When this gets done, we’ll propose some ideas to the board of directors and let them decide how they want to go forward.”

BusinessTalk with Dr. Andrew Lam, retinal surgeon with New England Retina Consultants

By
Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 175: August 14, 2023

Joe Interviews Dr. Andrew Lam, retinal surgeon with New England Retina Consultants

Dr. Andrew Lam has forged an intriguing dual career. The first is in medicine, as a retinal surgeon with New England Retina Consultants, an attending surgeon at Baystate Medical Center, and an assistant professor of Ophthalmology at UMass Medical School. But he’s also turned his lifelong passion for history into four acclaimed books: two in the realm of historical fiction, and two nonfiction works about the often-surprising lives behind modern medical advances. On the next installment of BusinessTalk, Dr. Lam talks with BusinessWest Editor Joe Bednar about his latest work, The Masters of Medicine, and how he goes about bringing history to life on the page — when he’s not helping patients salvage and improve their sight, that is. It’s must listening, so tune in to BusinessTalk, a podcast presented by BusinessWest and sponsored by PeoplesBank.

Sponsored by:

Also Available On

BusinessTalk with Matt Flink, president of Appleton Corp.

By
Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 174: August 7, 2023

George Interviews Matt Flink president of  Appleton Corp.

These are interesting and challenging times for commercial real estate and property management, and an equally intriguing chapter in the career of Matt Flink, who took the reins as president of Appleton Corp. last year and seeks to steer the firm, one of the venerable O’Connell Companies, into continued growth. On the next episode of BusinessTalk, Matt joins BusinessWest Editor Joe Bednar for an energetic, wide-ranging conversation about what goes into effective property management, the leadership skills he’s honed from both his past roles and coaching youth sports, the ways in which the post-pandemic world is changing the way people work … and much more. It’s must listening, so tune in to BusinessTalk, a podcast presented by BusinessWest and sponsored by PeoplesBank.

Sponsored by:

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Senior Planning Guide 2023

By
Senior Planning Special Coverage Special Publications

Inside This Year’s Planner

When BusinessWest and the Healthcare News first started publishing an annual Senior Planning Guide, the idea wasn’t to create a roadmap to the end of life, though it could, in some sense, be described as such.

The goal is to make sure you get your plans in order — from where you or your loved ones will live to how finances will be distributed — so you don’t have to worry so much, and instead enjoy the senior years to the fullest, or to help your aging parents enjoy them.

After all, the retirement years should be an enjoyable time, highlighted by special moments with family and friends, the freedom to engage in a range of activities, maybe even a chance to develop new interests and hobbies.

But to make the most of that time, proper planning — estate planning, financial planning, plans for care — is critically important. According to the U.S. Census Bureau, the number of Americans age 65 and older — which was 35 million in 2000, just 12% of the population — will reach 73 million by 2030, or 21% of U.S. residents. That’s a lot of people. And a lot of planning. And a lot of living left to enjoy.

Achieving your goals — and your desires for your loved ones — requires careful thought, and that’s where our annual Senior Planning Guide, presented by UMassFive Financial & Investment Services, comes in. So let’s sort through some of the confusion and get those conversations — and the rest of your life — started.

View this  year’s digital Senior Planning Guide HERE

Wellness for Life

Sharing a Life

Journaling Is a Therapeutic Exercise — for All Those Involved

Savvy Seniors Freeze It

Nutrition-minded Older Adults Should Heed These Tips

The Emotional Bank Account

How Seniors Can Maintain Mental Wellness

A Whole Year of Fun

Older Adults Have Plenty of Ways to Stay Physically Active

Estate & Financial Planning

Estate Planning: An Introduction

Goals, Strategies Can Vary with Each Stage of Life

Creating an Estate Plan

The Process Begins by Understanding the Key Documents

Decisions, Decisions

How to Choose a Medicare Plan

Preparing a Will

It Can Be a Dreaded Task, but It’s an Important One

A Task Better Left to a Professional

Being in Charge of an Estate Can Be Unsettling for All Involved

Roadblocks to Equality

LGBTQ+ Elders Face Unique Planning Challenges

Let’s Not Fight over This Stuff

Distributing Tangible Personal Property Can Cause Conflict

Caregivers & Adult Children

A Gentle Reminder

Don’t Lose Yourself in Caring for Others

Reading the Signs

Six Indications It Might Be Time for Memory Care

Having the Talk

Ten Tips on How to Approach a Difficult Topic

Four Steps to Emotional Wellness

Caregivers Must Understand the Importance of Self-care

It’s Not About Dying

How Hospice Care Supports the End-of life Journey

Senior Resources

Even Without Race-based Admissions, Colleges Aim to Cultivate Diversity

By
Harry Dumay
Education Special Coverage

Embracing Differences

Harry Dumay

Harry Dumay says some race-conscious policies have benefited both colleges and students over the years, even if Elms College doesn’t employ them.

Harry Dumay said he was disappointed, though perhaps not surprised, when the U.S. Supreme Court struck down the use of race-based criteria in college admissions on June 29.

At the same time, he said the ruling wouldn’t change anything at Elms College, where he serves as president.

“We do not use race-conscious policies in admissions,” he explained. “The way we go about having a diverse student body — and we are very satisfied that our student body has been increasingly diverse — is by projecting the idea that we are a campus where everyone is accepted, everyone is embraced, and everyone belongs.”

Elms recruits heavily from Greater Springfield and the broader Western Mass. region, as well as Connecticut, areas that are already demographically diverse, he noted. “We attract those students by creating an atmosphere on campus where every student feels this is the place where they’re valued and where they belong, so all students can benefit from the additional educational advantages of being in a diverse campus environment.”

“We sought legal counsel on whether we should be changing our practices, and also whether this would hamper us in achieving our mission of having a diverse student population, and it doesn’t.”

When the SCOTUS ruling came down, Dumay added, “we sought legal counsel on whether we should be changing our practices, and also whether this would hamper us in achieving our mission of having a diverse student population, and it doesn’t. We will continue to have a campus where all people, faculty, students, and staff feel that they belong, and feel the diversity that they bring is embraced.”

His sentiments were reflected across the region by college and university leaders who felt the court’s ruling was creating barriers to opportunity — affirmative action began in the 1960s as a tool to prevent discrimination at selective institutions, and has been used as an admissions tool ever since — but stressed that their own policies would continue to promote a diverse student body in lawful ways.

“While we have been anticipating and preparing for this outcome for some time, the court’s decision dismantling affirmative action in college admissions marks a historic and challenging moment for all of higher education, including institutions such as ours that are deeply invested in inclusive education,” said Kumble Subbaswamy, outgoing chancellor at UMass Amherst. However, “while the court may require us to change our methods, it cannot change our mission.”

Kumble Subbaswamy

Kumble Subbaswamy

“While the court may require us to change our methods, it cannot change our mission.”

Noting that university leaders will work closely with the UMass Office of General Counsel to ensure the admission process continues to reflect those values while operating within the boundaries of the law, he also cited the campus mission statement, which reads, “we draw from and support diverse experiences and perspectives as an essential strength of this learning community and accept for ourselves and instill in our students an ongoing commitment to create a better, more just world.”

To achieve this end, Subbaswamy explained, the admissions process has, for the past decade, employed a holistic approach that considers the entirety of an applicant’s life experiences. “Holistic admissions, which does not use race as a determinative factor, has served us well. Since 2011, the percentage of students of color in the incoming class has grown from 21% to 37%.”

Dumay, like most college presidents in Western Mass., was among more than 100 leaders from higher education, advocacy organizations, and the Massachusetts Legislature who signed a letter on June 29, the day of the SCOTUS decision, criticizing it.

“Massachusetts will always be welcoming and inclusive of students of color and students historically underrepresented in higher education. Today’s Supreme Court decision overturns decades of settled law. In the Commonwealth, our values and our commitment to progress and continued representation in education remain unshakable,” it reads. “We will continue to break down barriers to higher education so that all students see themselves represented in both our public and private campus communities. Massachusetts, the home of the first public school and first university, will lead the way in championing access, equity, and inclusion in education.”

Kerry Cole

Kerry Cole

“This doesn’t actually change our fundamental admission structure. But there are changes I think the industry can make to stop putting up additional barriers for certain populations of students.”

Even if the ruling doesn’t change practices at Elms, Dumay told BusinessWest, he is concerned about the broader higher-education sector.

“Studies have demonstrated the value of diversity,” he noted. “Studies have demonstrated that, without some race-conscious policies, elite institutions are not succeeding at recruiting a diverse student body. In the broader higher-education sector in general, one has to be concerned about the Supreme Court decision, but at Elms, we’ll continue to fulfill our mission to make sure that we have a very diverse and inclusive campus.”

American International College President Hubert Benitez released a statement following the ruling that struck a similar balance between concern over the ruling and a conviction that AIC doesn’t need affirmative action to be diverse.

“The Supreme Court’s decision will have minimal impact on AIC, as the college has always operated based on core values that prioritize access, opportunity, and diversity,” he noted. “Given our student demographic, diversity naturally thrives at AIC, and we must continue to serve this diverse population.”

 

Evolving Legacy

Kerry Cole, AIC’s director of Admissions, reiterated to BusinessWest that the college’s process will not change. “We have a holistic admissions process. We naturally have diversity within the student body, and we’re very fortunate, and we embrace that. So this doesn’t actually change our fundamental admission structure. But there are changes I think the industry can make to stop putting up additional barriers for certain populations of students.”

One of those, she said, is for colleges to start moving away from legacy admissions, which historically have not benefited minorities. Another is to recruit in all geographic areas, including low-income areas, because successful students can be found in all types of communities. “We heavily recruit in Hampden County, followed by Hartford County, and those are areas that are extremely diverse.”

Hubert Benitez

Hubert Benitez

“Given our student demographic, diversity naturally thrives at AIC, and we must continue to serve this diverse population.”

Over the past decade, Subbaswamy noted, UMass Amherst has significantly broadened its recruitment efforts across every demographic. “Since 2012, our Admissions team has recruited and received applications from underrepresented students from 66 additional high schools in Massachusetts alone. We have also partnered with more community-based organizations to help us recruit and enroll a more diverse class, including lower-income and first-generation students. We will also continue to work with our partners in the state and federal government to develop funding for pipeline programs and advocate for financial-aid investments.”

UMass and other institutions are doing this because of a shared belief that a diverse campus creates a sense of inclusion and belonging, which in turn promotes a healthy environment for everyone.

“We will continue to implement data-driven initiatives and procedures to ensure students of all backgrounds experience a strong sense of belonging and inclusion in our community,” Subbaswamy said. “We want every prospective student, no matter their background, to see their values reflected across the institution and recognize UMass as a place where they will thrive.”

Even absent the SCOTUS ruling, he added, “our commitment to upholding our values of diversity, equity, and inclusion would drive us to deepen our investments in recruiting and welcoming students from diverse backgrounds.”

Dumay agreed, arguing that a diverse student body reaches into the community, creating a more robust Western Mass., and the Supreme Court’s ruling only strengthens Elms’s resolve to enhance representation of all kinds.

He conceded that the ruling mainly impacts colleges that admit only a small percentage of their applicants. At Elms, which admits all students who have demonstrated they can do the work and succeed there, diversity efforts are a matter of attracting more applicants, as opposed to making tough decisions to admit or reject equally qualified students. “If you can do the coursework, regardless of race, you are admitted. We do not use any race-conscious policies in our admissions.”

However, he emphasized that the court’s ruling narrowly focused on the use of race in admissions at Harvard University and the University of North Carolina; it did not reject the importance of campus diversity itself, only certain means to achieve it.

“That is a great comfort to us because diversity is part of the Elms College mission statement,” Dumay went on. “The statement says that Elms serves a diverse student body in a nurturing educational environment. That is part and parcel of our mission: to foster an atmosphere that is diverse.”

Benitez added that AIC’s mission is to educate next generation of a diverse regional workforce, making a diverse campus an issue of economic development.

“What do we want in a student body? What do we want our classes to look like?” Cole added, noting that AIC recently launched a guaranteed-admissions initiative to qualified students, designed to ensure a fair and transparent admissions process for students who meet eligibility requirements.

As opposed to race-based admissions practices, AIC assures that all prospective freshmen applying to AIC will be admitted, provided they fulfill certain academic requirements. “We bring more transparency to the process,” she noted. “We at AIC don’t have the same challenges as some institutions, but it’s really important for us to show transparency.”

 

New Ways Forward

Late last month, the U.S. Department of Education drew more than 100 academics, government officials, and administrators to a National Summit on Equal Opportunity in Higher Education, where discussions touched not only on the post-affirmative-action landscape, but whether there should be change in the practices of legacy admissions and preferences for family members of donors.

According to the New York Times, attendees discussed the importance of developing and expanding tools to achieve diversity beyond race-based admissions, including recruiting through academic-enrichment programs for talented low-income students; improving financial aid; initiating direct admissions, or automatically admitting students who have met certain threshold requirements, as AIC has done; bringing disadvantaged students to campus to generate interest; and making it easier for community-college students to transfer to four-year colleges.

“We’re very committed to access, opportunity, and diversity as the foundation of the institution — it’s who we are,” Cole said. “We’re always making strategic decisions as an institution to make sure we’re able to maintain that, and to support all students moving forward.”

After all, people learn more amid different perspectives than in a homogenized environment, she said, and that goes for more than just students.

“I’ve been at AIC since January 2014. I learn things from the student body every year, even every day. It’s really important for folks to learn from each other and have a diverse campus like AIC,” she told BusinessWest. “We’re constantly learning, using different lenses when we looking at problems and issues. There’s a huge benefit to diversity on campus.”

Partnership Between MCLA, BIC Takes Aim at Workforce Needs

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Special Coverage Technology

Creating Collisions

While the pandemic was a time of upheaval in higher education, not all the changes that occurred were negative.

Indeed, Gina Puc said colleges and universities have seen higher education transformed in some ways, with a new sensitivity to innovative models of learning.

“We took a close look at how we were serving students in this new environment,” said Puc, chief of staff at Massachusetts College of Liberal Arts in North Adams. And one good example is MCLA’s new partnership with the Berkshire Innovation Center (BIC) in Pittsfield on an MBA program to enhance and expand experiences and career connections to prepare graduates for innovation-driven careers in the Berkshires and beyond. 

This fall and spring, BIC will host students from MCLA for 10 Saturdays as part of their MBA program, which will be taught online and on-site at BIC in a hybrid format. Applications for the fall 2023 program are due by Aug. 18.  

Puc said the partnership is reaching students who may not have thought about getting their MBAs pre-pandemic, but are drawn by this innovative, experiential model. “We’re meeting students at this moment in time through the collaborative nature of this MBA program.”

The BIC has been an intriguing story in its own right. With the approval of more than 80 regional stakeholders in the private sector, government, and academia, the Massachusetts Life Sciences Center awarded the city of Pittsfield a $9.7 million capital grant in May 2014, with the goal of developing a 20,000-square-foot innovation center in Pittsfield’s William Stanley Business Park, the former site of General Electric.

These days, the BIC, which officially opened in 2020, provides regional manufacturers and STEM businesses with advanced research and development equipment, state-of-the-art lab and training facilities, and collaboration opportunities with BIC’s research partners, as well as internship and apprenticeship programs for local students.

A relationship with Berkshire County’s only four-year public college just made sense, said Dennis Rebelo, BIC’s chief learning officer.

“BIC’s three pillars are community, technology, and learning, and innovation is most likely to be robust and have a likelihood of succeeding at the interaction of those [pillars],” he explained, noting that such interactions can range from hyper-localizing the supply chain of building a new product to technology workshops that teach companies — from hundred-year-old firms like Crane Currency to much newer entities like Boyd Biomedical — how technology can be a tranformative agent in ways they might not have considered.

Gina Puc

Coming out of the pandemic, Gina Puc says, higher education was being transformed, and colleges were taking a hard look at serving students in more innovative ways.

“There are different ways technology can be a catalyst in economic growth and development,” he said. “When we saw what was happening with MCLA, we started exploring how they could be more embedded in our world and how we could serve them. It made sense to host their MBA program as partners; we’re now referring to it as an innovation-based MBA.

“An MBA student does a capstone — maybe it’s building a new product, like an advanced car seat, maybe a therapeutic device, or maybe something like SolaBlock,” he went on, referring to the Easthampton-based developer of solar masonry units. “They can have coffee with an industry leader and talk about clean tech. They have access to all these organizations.”

MCLA President James Birge, a BIC board member, added that “it’s incredible to see two major Berkshire County institutions come together to leverage the growth of MCLA’s programming with the BIC advancement opportunities. I’m looking forward to the networking and educational opportunities this will provide for our MBA students and the collaborations with industry leaders at the BIC.”

 

Innovative Model

Through this partnership, MCLA aims to contribute to the BIC’s efforts to foster growth within the life sciences, advanced manufacturing, and all regional technology and innovation-based sectors. 

“To explain an MBA influenced by innovation … you could substitute the word innovation for creativity. What we’re able to do by having the classes at the BIC is that we’re allowing students to be adjacent to the creative process,” Rebelo said. “To be able to spark additional thinking that conjures up new ideas that can also be socially responsible is a big win. You may think about technology as anti-human, but we think about it as really serving humanity … we think about things more from a humanitarian standpoint.”

Dennis Rebelo

Dennis Rebelo

“When we saw what was happening with MCLA, we started exploring how they could be more embedded in our world and how we could serve them.”

Josh Mendel, associate dean of Graduate and Continuing Education at MCLA, agreed. “The possibilities are really limitless for our students to embrace and be a part of the future of advanced technologies,” he said, adding that this partnership allows the college to fulfill the critical needs of the advanced-manufacturing industry in Berkshire County to grow and enhance the future of the county’s workforce, and that partnering with BIC in this way was a logical next step in the MBA program.

“We needed to be at this hub of innovation, advancement, and opportunities for students to grow and support a critical sector in the Berkshires,” he explained.

Mendel said he expects applicants to the program to be a blend of recent MCLA graduates with a passion and desire to stay in the Berkshires and want to be part of the energy happening at BIC, and also working professionals who have an interest in getting their MBA to get to the next pay grade or promotional opportunity.

“Some are about to become entrepreneurs; we’ve had several students in the past couple of years start their own business organization,” he said. “So this made so much logical sense — our mission is to support critical growth sectors in the Berkshires, and what better partner than BIC?”

The Feigenbaum Center for Science and Innovation

The Feigenbaum Center for Science and Innovation at MCLA, which prepares students to enter the research pipeline and STEM careers.

The Berkshire Innovation Center’s programming includes the BIC Manufacturing Academy, an industry-led training collaborative designed to address persistent challenges facing the manufacturing economy in the Berkshire region by closing the gap between local supply-chain capabilities and the needs of larger manufacturers through ongoing education, training, and technology assistance. Another program is the BIC Stage 2 Accelerator, a 30-week, hands-on, results-oriented program designed to serve early-stage tech startups that are building a physical product and moving toward the manufacturing phase.

Josh Mendel

Josh Mendel

“We needed to be at this hub of innovation, advancement, and opportunities for students to grow and support a critical sector in the Berkshires.”

There’s also a robust slate of ‘learning series’ — for students, BIC members, community members, and executives — some of which MCLA’s students will be able to access. But beyond the specific programming, Rebelo said, the BIC is also a space that will excite students about learning, not only through classes and panel discussions, but through day-to-day conversations with people doing innovative work.

“They’ll have access to resources and ‘collisions’ — and the collisions they make in the café could lead to some of the most valuable outcomes of these innovative relationships,” he noted.

 

Staying Connected

Drawing on the ‘systems thinking’ philosophy of Peter Senge, a pioneer in organizational development, Rebelo noted that, “if we’re going to be a learning organization that thrives in the 21st century, MCLA and BIC have to be in constant conversations about the systems we’re creating together and strive for mastery of the educational experience of the adult learner.”

In addition, Mendel told BusinessWest that MCLA draws many students from outside the Berkshires, and connecting them to a hub like BIC could be a factor in keeping young talent within the region.

“It’s very important to us to connect these students back to these companies and organizations and job opportunities and internships, so they stay and grow and raise families and have full-time careers here in the Berkshires.”

Puc agreed. “We’re in a rural community, and I can’t think of another hub like BIC that serves a rural community they way they are. That speaks to the efficacy of our educational programs and the innovation of BIC, in the way we serve learners in a rural community.”

Square One Moves Forward with New Facility in Springfield’s South End

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Square One’s facility
Nonprofit Management Special Coverage

Building on a Legacy

aerial photo shows the former Square One property

This aerial photo shows the former Square One property, at lower right, the day after the tornado ripped through Springfield’s South End in 2011.
Photo by John Suchocki The Republican

While early-education provider Square One has a presence in several Springfield neighborhoods and serves residents city-wide, it has always been associated with the South End.

That’s where it’s been headquartered since the beginning, in 1883, when it was founded as Springfield Day Nursery by Harriett Merriam, the daughter of Charles Merriam, of Merriam-Webster dictionary fame, to meet a critical need for childcare among the city’s working families, said Dawn DiStefano, the agency’s president and CEO.

“We’ve always been anchored in the South End,” she said. “And it doesn’t take too much effort to walk into the South End and see that it is in woeful need of some attention.”

The bond with the South End was — and is — so strong that, when the agency’s facilities at 947 Main St. were heavily damaged by the June 1, 2011 tornado that devastated a large swath of that neighborhood and eventually razed, then-President and CEO Joan Kagan quickly pledged that the agency, which soon started leasing space at 1095 Main St., would rebuild in that section of the city.

But fulfilling that pledge has proven to be an enormous challenge.

“We’ve always been anchored in the South End. And it doesn’t take too much effort to walk into the South End and see that it is in woeful need of some attention.”

Indeed, although other options were looked at early on, it quickly became clear that, if the agency was going to rebuild in the South End, it would have to be on the property it owned, DiStefano said. And this property is fraught with challenges because of its small size, odd dimensions, contamination in the wake of the tornado, and other factors.

But, in a measure of its commitment to the South End, the agency is taking on all those challenges and moving forward with plans for a 26,000-square-foot, $12 million, three-story facility that will be built on the east end of the property that fronts Main Street.

Dawn DiStefano

Dawn DiStefano stands at the site on Main Street where Square One had a facility — and will again.

Plans call for erecting a Butler-style building on the property, one that features a number of pre-fabricated elements, which serves to reduce the overall cost of designing and building a structure, DiStefano said.

“We’re savings millions of dollars because we’re not doing a traditional brick-and-mortar building,” she explained, adding that the agency is working with One Development & Construction LLC in Westfield, which specializes in Butler-style construction, on the project.

The current timetable calls for construction to begin late this year, probably November, with the new facility slated to open its doors in the fall of 2024.

The agency is in the early — also known as the ‘quiet’ — stage of a capital campaign for the new building, with nearly $3 million committed to date — $950,000 from the city in the form of ARPA money, and a $2 million commitment from the state.

DiStefano said early indications suggest a strong measure of support for Square One’s initiative, and she expects the nonprofit will be able to open its facility with little, if any, debt.

“It’s all achievable … but we’re not working with 10 acres here. We ultimately determined that we could do something with this site.”

“The most enjoyable, and most encouraging, part of this project has been how many people and institutions are compelled to give or have shown promise,” she explained, adding that the agency undertook a feasibility study on the campaign, one that surveyed 42 individuals and companies and revealed “100% intent to support the project.”

For this issue and its focus on the region’s nonprofit sector, BusinessWest takes an in-depth look at Square One’s building plans and how they reflect a nearly century-and-a-half-old commitment to a city and especially one of its proudest, and neediest, neighborhoods.

 

Building Momentum

As she talked about the many challenges with building a new home for Square One, DiStefano said it’s good to keep things in their proper perspective.

Indeed, while there has been nothing easy about this building project, and it has a long way to go, the overall degree of difficulty pales in comparison — in most respects, anyway — with coming back from the twin disasters of 2011 and 2012 — and coping with the pandemic of 2020, for that matter.

The agency was completely displaced by the 2011 tornado; staff, teachers, and students were forced from the building and never allowed to return before engineers determined that it had to be demolished. In 2012, a natural-gas explosion downtown extensively damaged another Square One learning facility, to the point where it had to be abandoned. And early in the pandemic, Square One was forced to close its childcare facilities, as well as its operations on Main Street, before having to completely revamp operations after it was allowed to reopen to meet a huge need for childcare services.

Square One’s facility

An architect’s rendering of Square One’s facility to be built in Springfield’s South End.

The agency managed to push on and meet its broad mission — it provides early-learning services to more than 500 infants, toddlers, and school-aged children, and also offers an array of support services to more than 1,500 families each year — through all of that, DiStefano said, adding that the ability to do so offers strong testimony to the imagination and resiliency of its staff.

Those same qualities have been necessary for this building project, she went on, adding that, while rebuilding in the South End has always been the goal and the promise, it has proven to be a daunting challenge.

Indeed, the property that was ultimately destroyed by the tornado in 2011 was wedged into a narrow but deep lot, said DiStefano noted there was an administration building fronting Main Street and a two-story, L-shaped school building that extended eastward a few hundred feet. In a perfect world, or at least in a neighborhood with several alternatives when it comes to buildable lots and available property, Square One almost certainly wouldn’t rebuild on its former site, she added.

But this isn’t a perfect world. And Square One is building here only because there are few if any other options, she said, adding that she tried to purchase the brick property adjacent to former home of the agency, a move that would have provided considerably more frontage on Main Street, but was unsuccessful in that effort, just as her predecessor was unsuccessful in her efforts to secure other lots on which to build.

So the agency then focused its attention on building on its former home — an undertaking made challenging by the size and shape of the property as well as contamination from the demolition of the structures that once occupied the site.

“The bricks and all the materials from the homes that were razed obviously have asbestos and lead and other chemicals that have now seeped into the ground,” the explained, adding that the agency is currently working with a remediation company to determine just what is in the ground and what needs to be done to make the property ready for its intended use — as a home for programs for children.

Before even getting to that point, though, the agency had to conduct some due diligence to make sure it was feasible to build what it wanted to build on that parcel.

“This land is so awkward and small and weird that we didn’t want to buy it if we couldn’t build a building on it,” she explained, adding that Square One engaged in discussions with One Development to determine if its plan, its dream, was, in fact, doable.

Brad Miller, senior project manager with One Development, said that he and others ultimately determined that the answer to that question is ‘yes.’

“It is a challenging site because of its narrowness — it’s wedged between Hubbard and Williams streets,” he explained. “We only have so many options as far as the building footprint goes. The agency also needs a certain number of parking spaces, which we have to find a location for on that site, as well as a playground. It’s all achievable … but we’re not working with 10 acres here. We ultimately determined that we could do something with this site.”

The plans, still to be finalized, call for those parking spaces to be located on the Main Street end of the property, with the playground and building located toward the rear of the site, on a combination of the original site and a few smaller parcels acquired by the agency, DiStefano explained.

The planned structure will give the agency far more space than it has presently in the South End, she said, adding that the facility destroyed by the tornado had more classrooms than the currently facility.

Miller described what is planned for the site as a ‘Butler-hybrid’ building, a combination of conventional steel structure, with Butler components on the interior.

“This will a be steel-framed building with insulated metal panels on the outside, as well as some masonry on the first floor of the building,” he explained, adding that it will have a glass entranceway.

This pre-engineered building will ultimately save on design costs, he went on, adding that this is a design-build project, with One Development managing a large portion of the design as well as the construction.

While work continues on design aspects of the building project, Square One is proceeding with its capital campaign to raise funds to build the new facility.

As noted earlier, the agency has entered the quiet phase of the campaign, focusing on major grants from foundations and other donors, DiStefano said, adding that, by the start of 2024, she anticipates the process will enter the public phase.

 

Bottom Line

Returning to that feasibility study on the capital campaign and the resounding support it revealed, DiStefano said those results validate the agency’s determination to clear a long row of hurdles and ultimately build in the neighborhood where it was founded back when Chester A. Arthur was patrolling the White House.

“Those results make it enjoyable — that pushes you when you’re ready to say that this piece of land is too difficult to build on and it’s going to cost too much to do this,” she said, adding that this vote of confidence provides another dose of determination.

And even more commitment for Square One to build on a legacy that’s been 140 years in the making.

 

BusinessTalk with Chikmedia’s Meghan Rothschild

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Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 173: July 31, 2023

Joe Interviews Chikmedia’s Meghan Rothschild

Even with a strong background in marketing, Meghan Rothschild had reservations about launching her own business. But once she took the leap in 2013, she had plenty of confidence in her vision for the company: one of fierceness, attitude, and constant learning in the service of helping clients — many of them women business owners as well — reach the next level through better branding and messaging. As Chikmedia celebrates its 10th anniversary, Meghan joins BusinessWest Editor Joe Bednar on the next installment of BusinessTalk for a wide-ranging conversation about the challenges of entrpreneurship, the evolving world of marketing, and her important work in the realm of skin-cancer awareness. It’s must listening, so tune in to BusinessTalk, a podcast presented by BusinessWest and sponsored by PeoplesBank.

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BusinessTalk with Valley Blue Sox General Manager Tyler Descheneaux

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Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 172: July 24, 2023

BusinessWest Editor Joe Bednar talks to Valley Blue Sox General Manager Tyler Descheneaux

It’s not easy building a sports franchise that wins on the field while consistently growing its attendance and presence in the community. But the Valley Blue Sox, which has brought collegiate summer baseball to Holyoke since 2008, has certainly done both. On the next installment of BusinessTalk, as the team makes a late-season playoff push, General Manager Tyler Descheneaux joins BusinessWest Editor Joe Bednar for a wide-ranging discussion of what it takes to build a roster; how the team is connecting with families, businesses, and nonprofits through promotions and community outreach; how attendance has been ticking back up since the pandemic; and much more. It’s must listening, so tune in to BusinessTalk, a podcast presented by BusinessWest and sponsored by PeoplesBank.

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Banks Fight Upstream from Domino Effect of Higher Interest Rates

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Banking and Financial Services Community Spotlight Special Coverage

An Uphill Climb

Dan Moriarty was among the participants in the recent IRONMAN competition that wound its way through many Western Mass. communities.

The president and CEO of Monson Savings bank, Moriarty is also an avid biker, and decided to take things up a notch — or two, or three — with the IRONMAN, which featured a mile swim, downstream, in the Connecticut River; a 56-mile bike trek; and a half-marathon (13 miles and change).

Moriarty said his time — and he doesn’t like to talk about time — was roughly seven hours, and joked that that he believes he met what was his primary goal: “I wanted to come in first among all the local bank presidents.”

As things are turning out, the IRONMAN isn’t the only test of endurance he will face this year and next (yes, he’s already scheduled to take part again in 2024). He and all other banking leaders are facing another stern challenge, and where they finish on this one … well, there are several factors that will ultimately determine that, as we’ll see.

Indeed, the past year or so has been a long, mostly uphill, upstream stretch for banks, which are being severely tested by unprecedented interest rates hikes implemented by the Fed, which have a domino effect on banks — and their customers. For banks, these moves are squeezing margins that were already tight, with some margins off 50 basis points or more from last year. And for public banks, their stocks have, for the most part, been hammered.

This domino effect involves everything from the huge increase in interest paid to customers on their deposits to the manner in which those interest-rate hikes have brought the home-mortgage business to a virtual standstill.

To quantify that increase in interest paid to consumers, Tom Senecal, president and CEO of PeoplesBank, recalled a quote he read from the president of a large national bank that put things in their proper perspective.

“I won’t even call this a short-term problem anymore when it comes to profitability. It’s a medium-term problem that we’re all having to adjust to.”

“He said, ‘my raw-material costs have increased 600%,’” Senecal noted. “His raw materials are the funding for deposits for his wholesale assets, which have literally gone up 600%. If you look at any business and their profit margins — our raw materials have gone up 600%, so that squeezes our margins.”

Meanwhile, with interest rates more than double what they were a year or so ago, the refi market has obviously disappeared, said Kevin O’Connor, executive vice president of Westfield Bank, adding that, with home sales, those who might be thinking about trading up wouldn’t want to trade a 2% or 3% mortgage for one closer to 7% mortgage, so they’re taking what could be called a pause.

As is the Fed, which is taking a close look at the impact of its interest-rate hikes before deciding what to do next, although most experts expect at least one more rate hike this year.

And that will keep banks on this current treadmill, said Jeff Sullivan, president and CEO of Springfield-based New Valley Bank, adding that, while there has been talk that rates might start coming down this year, that likely won’t happen until at least early next year.

By then, the country may well be in recession, adding new levels of intrigue, said Moriarty, noting that the yield curve is currently inverted, a historically accurate predictor of recession.

“We’re going to eventually get into a recession in the third or fourth quarter of this year,” he said. “We were anticipating it might happen a little earlier with hopes that the Fed would have cut rates before of 2023, but now, we’re guessing that interest rates are going to be elevated another year out until they start cutting.”

Tom Senecal

Tom Senecal says unprecedented interest-rate hikes have put a great deal of pressure on banks large and small.

Overall, banks’ fortunes are tied, ironically enough, to how well the economy is doing, and they are in the unusual position of hoping that things cool off a little, said O’Connor, adding that, like the Fed itself, banks don’t want to see efforts to curb inflation throw the economy into reverse.

The biggest question, among many others, concerns when the pendulum might start swinging in the other direction and things will improve for banks. There is no consensus there — not with the economy still doing well, a presidential election looming in 2024, and other factors.

But the general feeling is that the uphill portion of this trek won’t be over soon.

“I won’t even call this a short-term problem anymore when it comes to profitability,” Sullivan said. “It’s a medium-term problem that we’re all having to adjust to.”

Moriarty agreed, noting that, while the first two quarters of 2023 has been a difficult year for most banks, the rest of this year and 2024 might be an even more of an uphill climb.

 

Points of Interest

Senecal told BusinessWest that, as he was heading home for the first weekend in March, he planned to take a break from his phone and spend a few days unplugged.

And he did … until news broke that Silicon Valley Bank (SVB) in California had failed after a bank run on its deposits.

So he started looking at his phone again. And he kept looking at it.

“The weekend that SVB failed, the four largest banks in the country took in roughly $140 billion in new deposits, and community banks, in general, lost $130 million in deposits. There was a huge move to larger institutions out of fear.”

Indeed, there were many discussions with other leaders of the bank about how to communicate with customers and convince them that their deposits were safe.

“That whole weekend, myself and our commercial team and our retail people were on the phone explaining what was going on, answering their questions, and putting their minds at ease,” he recalled. “And I talked to a number of my competitors, and they were doing the same thing.”

Such discussions were necessary, he said, because even though those deposits were becoming far more burdensome, cost-wise, as he noted earlier, all banks need them to have the money to grow their loans, and consumers were getting skittish.

Jeff Sullivan

Despite the interest-rate hikes, the economy is still humming in many respects, Jeff Sullivan says, meaning the Fed may still have some work to do to slow it down.

“The weekend that SVB failed, the four largest banks in the country took in roughly $140 billion in new deposits, and community banks, in general, lost $130 million in deposits,” he said, citing a combination of concern fueled by social media and the ease with which consumers can now move money electronically as the dominant causes. “There was a huge move to larger institutions out of fear.”

Overall, there was less fallout in this region, said O’Connor, another of those banking leaders who was the phone to customers assuring them that their assets were safe, adding that the failure of SVB and a few other banks this spring, and the resulting fallout from depositors, were just one of the many speedbumps encountered by banks in 2023.

Indeed, this was a year the industry knew would be challenging — or more challenging — going in, especially with regard to rising interest rates. Just not this challenging.

“Just a year ago, rates were quite low, and everyone thought rates were going up a point and a half, maybe 2%, something in that ballpark — that was the consensus prior to August of last year, when Chairman [Jerome] Powell said, ‘no, we’re really going to stomp on the brakes,’” Sullivan said. “Up to that point, we thought that rates would go up slightly, and we were modeling our projections on that; I don’t think there’s anyone who projected that rates would go up 5% in seven months — that’s unprecedented territory, and that’s what is causing the squeeze.”

O’Connor agreed. A year or so, banks were paying maybe a half-percent interest on deposits, he recalled, adding that most new CD products being advertised are featuring rates in the 4.5% to 4.9% range on the higher end, while rates on money-market accounts are coming up as well, numbers that reflect both the need to garner new deposits and growing competion for those assets.

“You have competition from other banks, internet-only banks, the security brokers — everyone is clamoring for those deposits,” O’Connor said. “And that certainly puts pressure on all banks, including community banks.”

Institutions are adjusting to this landscape, said those we spoke with, but it’s going to take some time to fully adjust because the rate hikes came so quickly and profoundly.

And such adjustments take several forms, they said, including efforts to trade fixed-rate assets for variable-rate assets, initiatives that take time and come with their own set of risks — indeed, rates could, that’s could, go down quickly.

Dan Moriarty

Dan Moriarty says many ominous signs point toward a recession, which could bring more challenges for banks and their customers.

On the mortgage side of the equation, there aren’t many options. Senecal said PeoplesBank has been working to acquire mortgages written in areas that are still relatively hot, such as Cape Cod. Meanwhile, O’Connor said Westfield Bank and institutions like it are pushing home-equity loans, and there is a good market for them as homeowners look to take that equity and put it back into their homes or make other large purchases.

“It certainly doesn’t make up for what we’re losing in mortgages and refis, but it does help,” O’Connor said. “We’re seeing a lot of interest in home-equity loans.”

 

No Margin for Error

While banks cope with the present, there is just as much discussion, if not more, concerning what will happen next and when conditions will improve for this sector.

And most of that discussion obviously involves the Fed and what will happen with interest rates, because it’s these rates that determine what happens with all those dominoes.

There is some general uncertainty about what the Fed will do, said those we spoke with, because the jury is still out, in some respects and at least in some quarters, on whether it has accomplished its mission when it comes to slowing down the economy and curbing inflation. This uncertainty led to intense discussion at the most recent Fed board meeting, Senecal said.

“There are two schools of thought on this. One is, ‘let’s wait and see what our rate increases are doing to the economy, because it’s like steering a battleship — it doesn’t happen right away,’” he told BusinessWest. “So the Fed took this pause trying to gauge what happened, and what happened? Inflation came down little bit; it was up to 6 or 7%, and now it’s 3.5% or 4%. But their goal is to get it to 2%. So do they continue to raise rates and wait to pause, or do they raise and do a long pause to see if inflation comes down to their target level of 2%?”

“I don’t think there’s anyone who projected that rates would go up 5% in seven months — that’s unprecedented territory, and that’s what is causing the squeeze.”

While inflation slowed in June — the consumer price index rose 0.2% last month and was up 3% from a year ago, the lowest level since March 2021 — core inflation is still running well above the Fed’s 2% target. And Moriarty is among those saying there is ample evidence that the Fed still has work to do to slow the economy and further decrease inflation.

“Employment numbers are surging, and that’s an indication the economy is still moving fast and hot,” he said. “My uneducated crystal ball is telling me we might see a few more interest-rate moves, which means it’s going to be more difficult for the economy to continue on this path.”

Many are saying that the probable course will be another rate increase and then that pause, he went on, adding that there is more conjecture about what will then happen. Will rates stay where they are, or will they start to come down and perhaps reverse the trends seen over the past year or so?

Kevin O’Connor

Kevin O’Connor says rising interest rates have slowed the mortgage business — and destroyed the refi business.

“The consensus is that the economy is starting to slow down — not quickly, but it’s starting to slow down — and that rate cuts will probably start to happen in 2024 because inflation and economic growth both show signs of slowing down,” Sullivan said. “When that happens, we can start to price the deposit costs down.

“We’re probably not going back to where we were before,” he went on, meaning rates near zero. “We’re going back to normal, or what could be a new normal — deposit rates in the 3% range. They’re not going to be zero, and they’re not going to be 5%; they’re probably going to be somewhere in the middle once all this settles out.”

When things will settle down is another question that is difficult to answer because the economy is still chugging along, and, with the notable exception of the mortgage market, consumers are still borrowing money.

“Borrowers have gotten used to paying loan rates in the 6s and 7s — they’re not happy about it, but it doesn’t seem to be stopping anyone’s appetite for acquiring assets and borrowing money,” Sullivan said. “There’s still plenty of business out there, and that would support what Powell has been saying — that they haven’t really slowed the economy yet; in fact, it’s pretty darned good. We’re taking applications every day, and we’re writing loans every day; we’re running our business as usual.”

 

Taking Account

Well … not quite usual at most institutions, especially with regard to mortgages and refis, a huge part of the success formula for the region’s community banks and credit unions.

In this environment, O’Connor said, Westfield Bank and institutions like it are putting even more emphasis on customer service, attracting new customers and retaining existing customers.

“We have to make sure that we’re the bank of choice and remain that,” he said. “We work hard at the commercial relationships, the consumer relationships … our branch teams, our cash-management teams, our lenders, everyone is out there being very available to our customers and working hard to attract new customers from other banks.”

Banks are always working hard on attracting and retaining customers, he said in conclusion, but this year, and in this climate, there is even more emphasis on such initiatives.

It’s all part of a broad response to something that is a little more than your typical economic cycle. It’s somewhat unprecedented, in fact … and certainly a long, uphill climb for most banks.

 

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