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Improvements Begin to Camp STAR Angelina
SPRINGFIELD  — State Energy and Environmental Affairs (EEA) Secretary Richard K. Sullivan Jr. was on hand recently for a groundbreaking ceremony for improvements to Camp STAR Angelina in Springfield’s Forest Park. “The Patrick Administration is committed to creating open space and parks across the Commonwealth because recreational opportunities improve the lives of both residents and visitors,” Sullivan said. “We are especially thrilled to help make Camp STAR Angelina the first universally designed day camp in Western Mass.” The Patrick Administration provided $1.23 million to help fund the construction of a zero-depth entry pool and accessible bath house, a universal outdoor amphitheater, and an accessible trail to Porter Lake. The pool is expected to open in time for campers to use it this summer, and the amphitheater and trail are expected to be completed this fall. The city of Springfield is contributing $600,000 toward the project. These upgraded facilities will also be made available to the public for a wide range of programs and events, such as picnics, family reunions, swimming, school field trips, and outdoor theater. Camp STAR Angelina, situated in the 700-acre Forest Park, serves youth and young adults with and without disabilities, medical concerns, and hearing and visual impairments. “All of our residents, especially the youth of Springfield, deserve the opportunity to participate in outdoor recreation regardless of physical ability,” Springfield Mayor Domenic Sarno said. “Camp STAR Angelina will become the home of therapeutic recreation for the city.” Springfield is one of seven cities across Massachusetts receiving funding through EEA’s Signature Urban Parks program. Through this program, the Patrick administration seeks to revitalize urban communities by opening up or upgrading green spaces for outdoor recreation and improving access to natural resources like waterways and historic neighborhood landmarks. “This is a great investment in the Springfield community,” said state Sen. James Welch. “These improvements to Camp STAR Angelina will create a terrific resource for our residents.”

Five Area Finalists Chosen for Nonprofit Excellence Awards
WESTERN MASS. — The Massachusetts Nonprofit Network (MNN) recently announced that five nonprofits and nonprofit professionals in the Pioneer Valley and Berkshires have been selected as finalists for the 2014 Nonprofit Excellence Awards. They include the Berkshire Youth Development Project , which serves youth and young adults in Berkshire County; Jay Breines, CEO of the Holyoke Health Center, which provides low-cost medical care; Nonotuck Resources Associates Inc. in Florence, which improves service access and delivery to people with developmental and intellectual disabilities; Donovan Arthen, executive director of PeaceJam New England in Northampton, which matches Nobel Peace Prize laureates with youth in a mentorship program centering on service learning and taking action for positive change; and the Western Massachusetts Network to End Homelessness, which serves homeless and at-risk individuals and families across the region. The Excellence Awards will be presented at MNN’s celebration of Nonprofit Awareness Day, a statewide holiday on June 9 that highlights the work of the nonprofit sector and raises awareness of causes throughout Massachusetts. “Nonprofit Awareness Day was created to recognize the impact and importance of the more than 33,000 nonprofits and almost a half-million nonprofit employees that provide invaluable services and are the cornerstones of our communities,” said Rick Jakious, CEO of the Massachusetts Nonprofit Network. “The Excellence Award finalists truly exemplify the most innovative, creative, and effective work being done throughout the Commonwealth.”

State Gets Reprieve from ACA Compliance
WASHINGTON, D.C. — Federal officials have granted Massachusetts an additional year to transition to full compliance with the Affordable Care Act, giving state health insurers until 2017 to replace their criteria for setting small-business premium rates with federal criteria. It was the latest federal move to delay implementation of the health law aimed at expanding health insurance nationally. Under pressure from small-business owners who feared federal criteria used to determine rates would increase their insurance premiums, state officials had asked Obama administration officials for more time and flexibility in adapting the national standards. Federal officials agreed last year to give Massachusetts a three-year timetable. Patrick, in a statement, thanked the White House “for affording us this flexibility that will help our small businesses more smoothly transition into compliance with the Affordable Care Act.”

Non-residential Building Inches Down in March
BOSTON — Non-residential construction spending inched down in March, making it the third consecutive month in which spending declined. Non-residential construction spending fell 0.1% on a monthly basis in March but has risen 4.4% on a yearly basis, according to a May 1 release by the U.S. Census Bureau. Spending for the month totaled $568.5 billion on a seasonally adjusted, annualized basis. Anirban Basu, chief economist for Associated Builders and Contractors, said the report isn’t too worrisome. “The factors that have produced recent economic and construction slowdowns appear to be temporary for the most part and not a sign of emerging economic turbulence. Given recent reports of increased private-sector hiring, construction activity should pick up meaningfully during the second quarter.” Overall, seven of 16 non-residential construction subsectors posted increases in spending in March: highways and streets, lodging, office, transportation, water supply, manufacturing, and religious. Nine categories saw declines in March: communications, education, commercial, public safety, sewage and waste disposal, amusement and recreation, healthcare, conservation and development, and power.

State Recognizes Programs for Energy and Environmental Education
BOSTON — The state office of Energy and Environmental Affairs (EEA) recently honored 27 programs — 22 schools and five nonprofits — at the 20th annual Secretary’s Awards for Excellence in Energy and Environmental Education. “We are proud to recognize the students, teachers, and nonprofits raising awareness about energy and environmental issues affecting Massachusetts and the planet,” said EEA Secretary Richard K. Sullivan Jr. “The ideas, research, and knowledge being recognized today show the forward thinking of our youth and how ready they are for the challenges ahead.” Winners competed for $5,000 in awards, funded by the Massachusetts Environmental Trust with the intention to fund further environmental education initiatives at the schools. EEA solicited nominations in early 2014. Two of the honorees were from Western Mass: the Eco Club at Minnechaug Regional High School in Wilbraham (students in grades 9-12), and the Korpita Kids Green Team at Williamsburg Elementary School (grade 2 students and teacher Johanna Korpita).

STCC Student Wins Elevator-pitch Contest
SPRINGFIELD — Anthony Grandoit, a Springfield Technical Community College student took first place at a recent elevator-pitch competition, part of the annual awards ceremony and banquet for the Harold Grinspoon Charitable Foundation’s Entrepreneurship Initiative. Before a crowd of more than 450, Grandoit pitched the “Baby Keurig,” which he called a “faster, cleaner, convenient way to keep your baby fed.” Mike Mullen, a student at UMass Amherst, took second place for his business concept Kloudbook, a mobile app to keep track of contact information. Finally, Scott Abdow, a student at Greenfield Community College, took third place with Game On!, an event-based entertainment center for card and board gamers. Representatives from six area banks — Berkshire Bank, Country Bank for Savings, First Niagara Bank, PeoplesBank, United Bank, and Westfield Bank — once again sponsored the elevator-pitch competition and served as judges at the April 30 event at the Log Cabin Banquet and Meeting House in Holyoke. An elevator pitch is an overview of an idea for a new business. The name reflects the fact that a pitch can be delivered in the time span of an elevator ride, roughly 90 seconds. The term is used when an entrepreneur pitches an idea to a venture capitalist to receive funding. The live event featured 15 students representing each of the 14 participating local colleges: American International College, Amherst College, Bay Path College, Elms College, Greenfield Community College, Hampshire College, Holyoke Community College, Mount Holyoke College, Smith College, Springfield College, Springfield Technical Community College, UMass Amherst, Western New England University, and Westfield State University. The first-, second-, and third-place winners received $1,000, $750, and $500 respectively. Each student received $100 for participating.

Briefcase Departments

MGM Asks Commission to Delay Awarding License
SPRINGFIELD — MGM Springfield President Michael Mathis asked the Massachusetts Gaming Commission to declare MGM the winner of a casino license for its $800 million project in Springfield’s South End by its planned decision date of May 30, but to delay the formal award until a ballot question seeking repeal of the casino bill is decided. Without that flexibility, he noted, MGM could be at risk for some $200 million in costs while the ballot issue is resolved. “No corporation should subject itself to that risk — including MGM Springfield,” he wrote to commission Chairman Stephen Crosby. “MGM is offering, under such a bifurcated process, to waive our statutory right to 30 days to make payment of our various licensing fees … and instead to make such payment within five business days of a formal award. We recognize the economic and budgetary benefit to the Commonwealth from an award [of the license] for Western Massachusetts and the receipt of the $85 million licensing fee by the end of this year.” Casino opponents are seeking to repeal the casino gaming law passed by the state Legislature in 2001. The state Supreme Judicial Court will begin hearing their arguments this month, and is expected to make a decision by July on whether the issue will appear on the November ballot. Once the license is issued, MGM argues, it will be required to pay not only the $85 million application fee, but also roughly $115 million in land options, construction, demolition, and other costs.

Berkshire Medical Center Purchases NARH Property
NORTH ADAMS — Berkshire Medical Center (BMC) has agreed to purchase the building and grounds of the recently shuttered North Adams Regional Hospital (NARH) as part of a deal reached in U.S. Bankruptcy Court to reopen the facility’s emergency room this month. The deal with Pittsfield-based BMC sets out a timetable to create a satellite emergency department the week of May 19 under an initial 90-day occupancy and use pact. Details on how many doctors and nurses would be hired and what services would be provided remain to be worked out. NARH executives shut down the financially troubled, 109-bed hospital on March 28, leaving nine rural communities in Northwestern Mass. without access to a nearby hospital. Over the past month, local, state, and court officials have been negotiating with BMC and labor unions representing nurses and others about reopening the emergency department. Beyond the purchase price, which will be revealed in the coming days, BMC officials said they would have to invest $10 million in repairs and improvements to the North Adams Regional Hospital building, but it is not expected to have to assume the closed hospital’s debt.

Life Sciences Center Awards $500,000 Grant to WNEU
SPRINGFIELD — The Massachusetts Life Sciences Center has awarded a $500,000 grant to Western New England University to fund equipment related to cancer drug research and development. Susan Windham-Bannister, the center’s president and CEO, called the program a great example of promoting academic and private-sector collaboration in the life sciences, adding that equipment will be purchased for the development of live cancer-cell drug filtration and testing platforms. The university will collaborate with Cellular Engineering Technologies and FioDesign Sonics on product marketing and research. The Massachusetts Live Sciences Center is an investment agency that supports innovation, research, development, and commercialization in the life sciences. The agency is charged with implementing a 10-year, $1 billion, state-funded investment initiative passed by the Legislature and Gov. Deval Patrick in 2008.

Massachusetts Adds 8,100 Jobs in March
BOSTON — Preliminary estimates from the Bureau of Labor Statistics (BLS) show that Massachusetts added 8,100 jobs in March and that the total unemployment rate dropped another 0.2% to 6.3% from the February rate. Over the month, jobs are up 8,100, with private-sector jobs up 7,800. Since March 2013, Massachusetts added a net of 50,400 jobs, with 53,900 jobs added in the private sector and 3,500 lost in the public sector. The total unemployment rate was down 0.6% from the March 2013 rate of 6.9%. The recent estimates show that 3,285,800 Massachusetts residents were employed in March and 220,900 were unemployed, for a total labor force of 3,506,800. The March labor force increased by 12,100 from 3,494,700 in February, as 19,200 more residents were employed and 7,200 fewer residents were unemployed over the month. The labor force was an estimated 24,500 above the March 2013 estimate. The unemployment rate is based on a monthly sample of households. The job estimates are derived from a monthly sample survey of employers. As a result, the two statistics may exhibit different monthly trends.

Briefcase Departments

Report Details State’s Healthcare Costs, Access
BOSTON — The Massachusetts healthcare reform law of 2006 set in motion a number of important changes to the healthcare system, which have affected Massachusetts residents, businesses, healthcare providers, and others. Since 2006, the Massachusetts Health Reform Survey (MHRS) has been an important means of monitoring and understanding these impacts. The most recent report, conducted in the fall of 2012, just after passage of the state’s healthcare cost-containment law, brings both good news and signs that warrant concern. As with previous versions of the MHRS, the just-released results of the 2012 survey provide promising evidence that the insurance provisions of the Affordable Care Act, which were modeled after the 2006 Massachusetts law, will improve coverage and access across the nation. However, the 2012 survey also shows that healthcare costs continue to be a burden for many. Massachusetts continues to have the highest rate of insurance coverage for non-elderly adults of any state, 94.6%. This is a significant improvement over 2006, when 85.9% of non-elderly adults had insurance, and much higher than the current national level of 79.7%. In addition, gaps in coverage have lessened: 88% of adults in Massachusetts reported being covered for the entire year, much higher than the national level of just under 75%. The proportion of people in Massachusetts who are “persistently uninsured” has been cut by nearly three-quarters, falling from 9.3% in 2006 to 2.7% in 2012. The survey indicates that respondents are generally satisfied with their healthcare coverage, with about two-thirds rating their coverage as very good or excellent on the range of services, choice of providers, and quality of care, up more than 10% from pre-reform. Access to care is also is very good; nearly nine in 10 respondents reported having a place, other than the emergency room, to go to when they are sick or need advice about their health. This is higher than national estimates for this measure, which top off at around 80%. Use of physician services is also higher in Massachusetts than it is nationally. Eight in 10 non-elderly adults reported having visited a doctor in the past 12 months, compared with 63% nationally. On the issue of affordability, more than 40% of non-elderly adults reported that healthcare costs had been a problem for them and their families over the previous year, including 37.1% who experienced problems with healthcare spending and 16.4% who reported going without needed care because of cost. Having health-insurance coverage did not eliminate cost concerns, as 38.7% of those who were insured for the full year reported that they had problems with healthcare spending. One reason the burden of healthcare costs has not diminished with rising levels of coverage is the continuing trend among employers to shift costs onto workers and their families, such as through high-deductible plans.

Massachusetts Ranks High in Spending Transparency
BOSTON — Massachusetts received an A– grade in government spending transparency according to “Following the Money 2014: How the 50 States Rate in Providing Online Access to Government Spending Data,” the fifth annual report of its kind by the Massachusetts Public Interest Research Group (MASSPIRG). “We have worked hard to make state government more transparent for taxpayers, and this superb grade from MASSPIRG reflects that,” said Secretary of Administration and Finance Glen Shor. Massachusetts came in at the top of the nation with a grade of 91.5, maintaining it’s A– rating for the third year in a row despite the increasing difficulty of the annual survey as technology improves and consumer expectations rise. The MASSPIRG report designates Massachusetts as a ‘leading state’ in progress toward improved online spending transparency, allowing ordinary citizens to find information through easy-to-use features. The report applauds Massachusetts for increasing transparency by awarding more than $300,000 in grants to six cities to post their spending information online, and planning to help 20 cities post their spending information online by January 2015; posting information on state contracts and bidding opportunities through the state’s checkbook-level procurement website, saving the state $3 million by eliminating paper, postage, and printing costs associated with information requests by state agencies and paperwork from vendors; and improving the state’s transparency website by publishing a report on the Economic Development Incentive Program, which provides recipient-specific details on jobs retained and created. “Given that our grading standards rise annually, earning an A– each year means Massachusetts has demonstrated a significant commitment toward transparency and is continually investing in improvements,” said Andrew Fish, program associate with the MASSPIRG Education Fund. “Gov. Patrick’s commitment to increasing disclosure of the state’s finances allows the public to see how their tax dollars are being invested, promoting both efficiency and accountability.” Patrick’s FY 2015 budget, which was published in a program-based manner and added performance data to the state budget for the first time, aimed to make more spending and performance data available to the public. To read the full report, visit www.masspirg.org.

DevelopSpringfield Issues 1095 Main Street Grant
SPRINGFIELD — DevelopSpringfield announced that it has awarded a $20,000 grant for façade improvements to 1095 Main St., property owned by 1095 Main Street Irrevocable Trust. Building tenants include Square One Family Center and Santos Family Chiropractic. The grant is made possible under DevelopSpringfield’s Corridor Storefront Improvement Program, which provides grants of up to $10,000 per storefront for exterior improvements to first-floor businesses located on State and Main streets in Springfield. The funds were used to revitalize and repair the existing façade and included new windows, doors, and signage. The grant is supporting a substantial investment for improvements to the building by the property owner. “This project represents well over $100,000 in capital improvements to the façade of this building,” said Ralph Capua of 1095 Main Street Irrevocable Trust. “It’s an example of our commitment to bringing business back to the South End, and allows for additional leasing opportunities for prospective business owners.” The project shows a strong commitment to revitalization Springfield’s South End, an area devastated by the June 2011 tornado. Improvements to this structure made it possible for Square One, which lost its site after the tornado and was further displaced by the downtown natural-gas explosion in November 2012, to find a new home. The Square One Family Center celebrated the opening of its 1095 Main St. facility last September.

40 Under 40 The Class of 2014
Assistant Vice President, Commercial Lending, Monson Savings Bank, age 35

Rob-Chateauneut-01In almost 15 years in banking, Rob Chateauneuf has seen plenty of change — literally and figuratively.

He started out as a teller at Woronoco Savings Bank, later acquired by Berkshire Bank, while finishing his degree at UMass Amherst. “From there, I got my management degree, and I was lucky enough to be put through the management training program.”

And he found his true calling in commercial lending. “A senior lender noticed that I really like to do loans, and they’d started a small-business program; that’s how I got my first job in commercial lending,” he explained. “I really liked it.”

Eventually, Monson Savings Bank came calling, offering Chateauneuf a position as assistant vice president of Commercial Lending, a job he relishes. “People picture bankers as number crunchers, but so much more goes into it. I don’t do transactions; I build relationships.

“Every deal is different,” he went on. “And you’re helping a company that might employ a great deal of people in the area, so you’re actually helping to develop the economy in the Pioneer Valley. At the end of the day, I pick up my briefcase and computer and say, ‘wow, I feel like I contributed to society.’”

He has also contributed to the community through volunteer work, most notably by chairing the board at Hawthorn Services — a provider of programs for the elderly — until that organization merged with the Center for Human Development, where he now serves on the board of directors’ program committee. “We make sure that CHD continues to focus on the needs of our community, whether it be child services, elder care, or homelessness,” he said.

Chateauneuf, who has twin 3-year-old boys, Evan and Bryce, with his wife, Shauna, finds a certain creative spark in his job and his volunteerism — a side of his personality he used to nurture through music.

“When I finished college, I played drums on the road for five years while I was the assistant manager at the bank,” he said. “I still don’t know how I got into banking; my goal was to play the drums, to play music. I guess one day, you wake up and realize you need a job that pays the bills. And banking was where I was at the time. But I lucked out, because I love it.”

— Joseph Bednar

Briefcase Departments

North Adams Regional Hospital Closes
NORTH ADAMS — The board of trustees of Northern Berkshire Healthcare (NBH) approved a resolution late last month to close North Adams Regional Hospital (NARH), the Visiting Nurse Assoc. & Hospice of Northern Berkshire, and three medical practices owned by NBH. The decision was made in response to NBH’s worsening financial status. The organizations closed on March 28, but a court order kept the hospital Emergency Department open for the time being. “In the six years that I have been on the board, we have investigated every possible avenue and exhausted all options as we searched for a way to continue operating the hospital and its affiliates,” said Julia Bolton, board chair. “Board members, management, physicians, and employees have worked together with dedication and commitment to prevent this outcome. But now, given our finances and the daunting challenges that small rural community hospitals are facing in this healthcare environment, we can no longer continue.” More than 500 affected employees received layoff notices and assistance in filing for unemployment benefits. Northern Berkshire Healthcare Physicians Group includes Northern Berkshire Family Medicine, Northern Berkshire Ob/Gyn, and Northern Berkshire General Surgery, all in North Adams. “The implications of this decision are far-reaching, but our primary concern is for our patients,” said Timothy Jones, president and CEO of NBH. “We are working tirelessly to ensure a smooth transition to other care providers including other hospitals in the region.” Patients of Northern Berkshire Family Medicine and the VNA & Hospice of Northern Berkshire are being transitioned to other practices and agencies. “North Adams Regional Hospital opened 129 years ago in 1885, and as an institution we have served the people of this area with dedication and pride,” Jones said. “Many of those who work here have served our patients for decades, and today’s news is a shock. We wish it could be different.” Meanwhile, lawyers working for the state are seeking to keep emergency services operating for at least 90 days during any ownership transition or closure. Lawmakers are also discussing the possibility of merging NBS with a larger, more stable partner, most likely Berkshire Health Systems in Pittsfield.

Springfield Armor to Bolt for Michigan
SPRINGFIELD — The Springfield Armor, the NBA Developmental League affiliate of the Brooklyn Nets, have signed a deal with the Detroit Pistons to become that team’s minor-league affiliate and moves to Grand Rapids for the 2014-15 season. Owner Michael Savit’s decision to sell, first reported by Michigan-based mlive.com, came as a surprise to Springfield officials. The team has played at the MassMutual Center for the past five years. The new Grand Rapids franchise has an undisclosed multi-year affiliation agreement with the Pistons in place, and the sale has met league approval, according to mlive.com. It will play home games at The DeltaPlex Arena in Walker, a Grand Rapids suburb. The franchise will be locally owned, and the Pistons will establish a single-franchise affiliation with it. Currently, 14 of the 17 D-League teams have single-franchise affiliations with NBA parents. Detroit currently is one of six NBA teams sharing the Fort Wayne (Ind.) Mad Ants. D-League teams follow one of two ownership models — exclusive ownership by the parent NBA club, or a hybrid affiliation in which local ownership controls day-to-day and business operations while the parent club controls basketball operations. The Grand Rapids franchise will follow the hybrid model, whereby the Pistons will pay players’ and coaches’ salaries and run basketball operations, but local owners operate autonomously in other business areas, including marketing and merchandising.

UMass Football to Leave Mid-American Conference
AMHERST — The University of Massachusetts has announced that it will end its football affiliation with the Mid-American Conference (MAC) following the 2015 season. Athletic Director John McCutcheon said the decision was made after the MAC President’s Council elected to exercise a contract clause that offered UMass a choice of becoming a full member for all sports in the MAC or opting to remain a football-only member for just two more years. The university has been conducting a study of its current and potential conference alignments with the assistance of Carr Sports Consulting. “While the report is not complete,” McCutcheon said, “we believe full membership for all sports in the MAC is not a good fit for us. Because most of the MAC schools are in the Midwest, the additional travel would strain our athletic budget and pose considerable time-management challenges for our student athletes. We are confident that, within the next two years, we will find a more suitable conference for our FBS football program.” Currently, UMass Amherst has 21 varsity athletic teams (10 for men, 11 for women). Football plays in the MAC, and the other 20 teams compete in the Atlantic 10 Conference, Hockey East (men’s ice hockey), and the Colonial Athletic Assoc. (men’s lacrosse). UMass began playing as a football-only member of the MAC in 2012. McCutcheon added that “we remain committed to FBS football. Many institutions have successfully navigated this challenging period of conference realignment, and we will do the same.” Football coach Mark Whipple expressed confidence in the future of the university’s football program. “I was aware of this possibility when I accepted the position of head coach, and I believe this move is in the university’s best interest,” he said. “My focus is on building a program that we all can be proud of and that provides a great experience for our student athletes.” Whipple, the coach with the most wins in UMass football history, returned to the helm of the program this year. The Minutemen’s 2014 home schedule includes three games at refurbished McGuirk Alumni Stadium in Amherst and three games at Gillette Stadium in Foxboro.

Leadership Pioneer Valley Seeks Applications for Fall
SPRINGFIELD — Leadership Pioneer Valley (LVP) is now accepting applications for its 2015 class, which begins in late September. LVP is a regional leadership-development program for 40 existing and emerging leaders from the private, public, and nonprofit sectors. It helps businesses retain employees; enhances leadership skills, including collaboration, team building, confidence, and cultural competency; builds wider and more diverse networks; and increases community and regional understanding. The 10-month program immerses participants in an inspiring and results-driven curriculum that teaches hands-on leadership skills while examining critical issues that impact the region. LVP combines seminars and experiential learning at different locations throughout the Valley to foster the skills, collaboration, networks, and commitment needed to build the next generation of area leaders. The competitive application process prioritizes diversity by employment sector, geography, race, gender, and sexual orientation. “I have had the opportunity to work with some of the Baystate graduates of LPV,” said Steven Bradley, vice president of Government and Community Relations and Public Affairs at Baystate Health. “They are taking their learning seriously and upped their leadership within their departments and in the organization as a whole. It was a great experience for them and Baystate.” To find information about tuition, upcoming open houses, the 2014-15 program schedule, and how to apply, visit www.leadershippv.org. The application deadline is July 1.

Ted Hebert to Sue Big E Over Casino Fallout
WEST SPRINGFIELD — West Springfield resident Ted Hebert, owner of Teddy Bear Pools, who was opposed to the Hard Rock Casino proposed for the Big E fairgrounds and defeated in September by West Springfield voters, recently filed a lawsuit on behalf of himself and Teddy Bear Pools against the Eastern States Exposition, claiming his West Springfield casino opposition has led to Big E management to exclude Teddy Bear Pools from the 2014 Fair after 28 consecutive years as an exhibitor. “We filed suit today [March 31] in Hampden County Superior Court seeking injunctive relief that would allow Teddy Bear Pools, an exhibitor at the Eastern States Exposition for the past 28 years, to have a continued presence,” said Hebert’s attorney, Paul Rothschild of the Springfield law firm Bacon Wilson, P.C. “Prior to the referendum and after Ted Hebert expressed his personal opposition to a proposed West Springfield casino, documents we are prepared to submit in a hearing before the court will show that Big E management suggested Hebert ‘be a team player’ and withdraw his opposition to the casino. Since the referendum this past September, Ted Hebert has repeatedly reached out to fair management and members of the exposition’s board of trustees to maintain the long-standing relationship between Teddy Bear Pools and the Big E, and to continue a presence on the fairgrounds for this year’s fair. Hebert learned his company would not be welcomed at the 2014 Big E, and Teddy Bear Pools was omitted from the standard exposition communication about leasing space for the fall fair.” Big E President Gene Cassidy told the Republican that he was not aware of the lawsuit until he was asked about it by the newspaper. Rothschild said he planned to seeking a hearing in Superior Court based on the Massachusetts Civil Rights Statute, claiming that Hebert’s civil rights were interfered with by “threats, intimidation, or coercion” and exclusion from the upcoming Big E by fair management. The lawsuit will seek reinstatement as an exhibitor and an award of damages.

Business Confidence Up Slightly in March
BOSTON — The Associated Industries of Massachusetts (AIM) Business Confidence Index, continuing to hold close to a neutral 50 on its 100-point scale, rose slightly to 51.1 in March. “Business confidence in Massachusetts has been in neutral range for a year, dipping below neutral when there was a threat of federal default and when the  government shut down in October, but otherwise with not much upside,” said Raymond Torto, global chairman of research at CBRE and chair of AIM’s Board of Economic Advisors. Torto pointed to several factors that are holding the confidence index down. “One is a generally negative view of national conditions, attributable in part to deadlocked politics. The confidence numbers are persistently low in relation to the actual performance of the economy. Another, as we noted last month, is particularly weak confidence among small employers, who face severe competitive pressures and feel the weight of regulatory burdens. Finally, hiring trends are built into our index, and among employers participating in our survey, the ability to contribute to job creation has been less hearty than might be expected during a recovery period.” AIM’s Business Confidence Index has been issued monthly since July 1991 under the oversight of the Board of Economic Advisors. Presented on a scale on which 50 is neutral, its historical high was 68.5, attained in 1997 and 1998; its all-time low was 33.3 in February 2009.

Briefcase Departments

Bradley Passenger Traffic Up Five Straight Months
WINDSOR LOCKS, Conn. — With January passenger statistics tallied, the Connecticut Airport Authority (CAA) has announced that Bradley International Airport (BDL) has continued an upward trend which began in September 2013. January’s 9% rise marks five straight months of positive year-over-year increases. This follows September (1%), October (4%), November (3%), and December (20%), as Bradley showed an overall 1% total growth in 2013 (5,421,975 passengers) compared to 2012 figures (5,381,860 passengers). Improvements to Bradley’s route offerings, which were implemented throughout 2013, have helped drive this upswing. These advances include American Airlines’ daily non-stop flight to Los Angeles, JetBlue Airways’ Fort Myers and Tampa daily non-stop service, and Southwest Airlines’ three daily non-stop flights to Atlanta through its wholly-owned subsidiary, AirTran Airways. Numerous customer-service enhancements have been instituted as well, such as the establishment of a frequent-parker program, expanded concession offerings, and improvements to passenger-processing wait times. “The Connecticut Airport Authority takes great pride in achieving this milestone of revitalization. One of our greatest selling points to our customers, in addition to our convenient terminal and on-airport parking facilities, is Bradley’s tremendous accessibility from anywhere in the Northeast,” said Kevin Dillon, executive director of the CAA. “We believe that the best is yet to come. We are excited about working with all of our stakeholders as we continue to aggressively seek additional daily non-stop destinations for our customers from one of the region’s most convenient gateways.” Bradley is the second-largest airport in New England, serving an extensive geographic area with a customer base that covers the entire Northeast. According to the most recent economic-impact analysis, Bradley contributes $4 billion in economic activity to the state of Connecticut and the surrounding region, representing $1.2 billion in wages and 18,000 full-time jobs.

State to Issue $30 Million in Residential Solar Loans
BOSTON — Massachusetts Energy and Environmental Affairs Secretary Rick Sullivan recently announced $30 million for a loan program aimed at encouraging residential solar projects, complementing the Commonwealth’s new solar program to be launched this spring. “When we support our solar industry, we are choosing to shape our future rather than leave it to chance,” Gov. Deval Patrick said. “These programs will allow the solar industry in Massachusetts to continue to flourish and will make solar energy more accessible for residents across the Commonwealth.” Added Sullivan, “the solar industry in Massachusetts has seen tremendous success since Gov. Patrick took office in 2007. The solar financing piece will make it easier for residents to participate in, and benefit from, the Commonwealth’s clean-energy revolution.” The Massachusetts Department of Energy Resources (DOER) is currently working with partners and stakeholders to develop the program, expected to launch this spring when the final solar regulations are promulgated. “We continue to work with all stakeholders at the table to develop successful programs to maintain the steady growth of the solar industry,” said DOER Commissioner Mark Sylvia. “I’m proud of the open and inclusive process that led to these regulations and will inform the loan program.” The flow of loans to the residential market is expected to commence in the summer or fall of 2014. The new solar regulations, part two of the Solar Renewable Energy Certificate program (SREC-II), are designed to meet Patrick’s goal to install 1,600 megawatts of solar energy by 2020. SREC-II aims to ensure steady annual growth, control ratepayer costs, and encourage ground-mounted solar projects on landfill and brownfield sites, as well as solar units on residential rooftops. “Investing in solar is a win for both our economy and our environment. This investment, in particular, will help spur the residential solar market,” said state Sen. Benjamin Downing, co-chair of the Joint Committee on Telecommunications, Utilities, and Energy. “Instead of drilling or mining for our power, we’ll be using our rooftops to fuel future growth. Gov. Patrick and his entire team deserve great credit for their leadership in making this investment.”

Teenagers Find Difficulty Accessing Job Market
WASHINGTON, D.C. — Teenagers are getting squeezed out of the labor force in record numbers as unemployment among the youngest workers continues to soar, according to a study from the Brookings Institution, a Washington think tank. The study found that the percentage of teenagers with jobs has plunged by nearly half over a decade, from 44% in 2000 to 24% in 2011. “If this were any other group, you would call it a Great Depression,” said Andrew Sum, the Northeastern University economist who co-authored the study. Competition from older, more experienced workers pushed into lower-skilled jobs because of the weak economy has crowded out teenagers from traditional jobs in retail, restaurants, and other lower-paying service industries, Sum said. This lack of opportunity could have long-term effects on teens, the labor force, and the broader economy as young people fail to gain the experience that might help them advance careers and become more productive workers, resulting in lower earnings over a working life. The Brookings study examined teen employment in 100 metropolitan areas. In New England, Portland, Maine fared best, with about 37% of teens employed. Providence, Hartford, and Boston all posted percentages around 34%. Teens who had paid employment in one year were more likely to work the following year, the study found. Conversely, said Sum, “if you don’t work at all, you are the least likely to work the following year.”

Partnership to Benefit Creative Businesses
WESTERN MASS. — The state recently designated the Pioneer Valley as part of Massachusetts’ Creative Economy Network and formally partnered with the Western Mass. Economic Development Council (EDC) on an initiative to help creative businesses increase their visibility, recruit talent, find appropriate space, borrow capital, and continue to grow. The designation doesn’t come with state money, but several organizations are planning to apply for state grants. Ann Burke, vice president of the EDC, told the Republican that more than 15,000 people in Hampden, Hampshire, and Franklin counties work in the creative economy, an umbrella term that encompasses writers, fashion designers, graphic artists, and advertising professionals, among others. DevelopSpringfield, the Fostering Arts and Culture Project in Franklin County, and the Hampshire County Regional Tourism Council are among the other groups participating. Burke said the EDC has already hosted networking get-togethers for these creative workers.

Union Station Project Gets Another $16.5M
SPRINGFIELD — The state Department of Transportation (DOT) has designated another $16.5 million toward the renovation of Springfield’s Union Station. The decision completes the $65.7 million funding package necessary to fully finance the first phase of the redevelopment effort. The total project cost is expected to be $83 million. Phase one of the project involves the construction of a 26-bay bus terminal for regional and intercity bus service; construction of a four-level parking garage; a 37,000-square-foot renovation of the train terminal’s first floor and grand concourse waiting area, including new ticketing and waiting space; and concessions and retail space, according to the DOT’s news release. Work at Union Station began in August 2010 and is expected to be completed in 2016. “Springfield is located at a strategic crossroads for both north-south and east-west interstate highway and railroad corridors in a key region of the Commonwealth,” said Richard Davey, MassDOT secretary and CEO, in a prepared statement. “With these additional resources, the city of Springfield is guaranteed that its potential as a major regional mobility hub will be realized.” As part of the second phase, the Redevelopment Authority would renovate the upper two floors of the terminal building and create an additional 64,000 square feet of commercial or retail space, as well as expanding the parking garage by 120 spaces.

Health Policy Commission Issues $10M to Hospitals
BOSTON — At its first board meeting of 2014, the Health Policy Commission (HPC) awarded approximately $10 million to 28 community hospitals, including seven in Western Mass., to enhance the delivery of efficient, effective healthcare across the Commonwealth. The funds, which range from $65,000 to $500,000 per organization, come from Phase 1 of the HPC’s Community Hospital Acceleration, Revitalization, and Transformation (CHART) Investment Program, which was established by the state’s landmark healthcare cost-containment law. The Western Mass. awards include: $476,400 to Baystate Franklin Medical Center to support expansion of telemedicine capacities to select inpatient and outpatient specialties, with the goal of reducing unnecessary transfers and costs, and connecting local providers to health information exchanges; $499,600 to Baystate Mary Lane Hospital to support expansion of telemedicine capacities to identified inpatient and outpatient specialties, in order to reduce unnecessary transfers and costs, connect local providers to health information exchanges, and support an evaluation of post-acute services and capabilities in the region; $500,000 to Holyoke Medical Center to support implementation of an electronic health record system in the Emergency Department; $233,134 to Mercy Medical Center to support the development of organizational capabilities, capacities, and culture change, in order to accelerate and sustain continuous quality and safety improvements; $344,665 to Noble Hospital to support the development of a centralized scheduling hub to coordinate appointments across multiple hospital units, and to support planning related to health information exchange connectivity; $395,311 to North Adams Regional Hospital to support co-location of behavioral-health services at primary-care practices in Northern Berkshire County; and $357,000 to Wing Memorial Hospital to support achievement of meaningful use stage 1 compliance. “These awards show that the HPC is committed to partnering with community hospitals to achieve the Commonwealth’s cost-containment and quality-improvement goals,” said David Seltz, executive director of the HPC. “We look forward to continuing this work until we build a more coordinated and affordable healthcare system in all corners of Massachusetts.”

Briefcase Departments

ESE Bid to Black Out Casino Events Rejected
BOSTON — The state Gaming Commission has rejected the Eastern States Exposition’s (ESE) bid for recognition as a venue that would suffer financial damage from the $800 million casino that MGM Resorts International plans to build in Springfield. The commission voted 3-2 to deny the request on the condition that MGM impose a blackout on potentially competing events during the 17 days of the Big E, the fair that generates about 85% of the Eastern States Exposition’s revenue. If the 17-day blackout fails to protect the Big E, the exposition can reapply for status as an ‘impacted live entertainment venue, the commissioners said. Eugene Cassidy, president and CEO of the West Springfield-based ESE, said the nonprofit will consider filing a lawsuit against the commission to overturn the ruling. The had called for a longer blackout period, including 45 days before the fair and 30 days after, to offset MGM’s competitive advantage. West Springfield is still negotiating a surrounding-community agreement with MGM to mitigate the casino’s impact, as is Longmeadow. MGM has successfully negotiated surrounding-community mitigation agreements with Ludlow, Agawam, Wilbraham, East Longmeadow, Chicopee, and Holyoke. The agreements with Agawam and Chicopee call for each community to receive $125,000 up front with annual payments of $150,000. Ludlow, East Longmeadow, and Wilbraham are set to receive $50,000 up front with annual payments of $100,000. The Holyoke agreement calls for $50,000 up front and $1.28 million over 15 years.

State Issues Innovation Challenge Grants
BOSTON — Glen Shor, state Secretary of Administration and Finance, recently announced 37 projects slated to receive funding from the $4 million Community Innovation Challenge (CIC) grant program. Now in its third year, the program incentivizes and supports regionalization and other cost-saving initiatives that will change the way local governments do business to maintain service delivery and stretch every taxpayer dollar as far as possible. “The CIC program is a major component of the Patrick administration’s commitment to provide cities and towns with the tools to effectively manage resources and provide services to their residents,” said Secretary Shor. “This program provides an opportunity for neighboring communities to build partnerships, share services, and use their resources wisely.” Added state Sen. Steven Brewer, “investing in the relationships between local governments, school districts, and regional organizations is fundamental for growth and innovation in our state. The Community Innovation Challenge grant program has provided millions of dollars to unique projects around the Commonwealth, and I look forward to seeing the positive effects that it will have on the towns and organizations in my district.” As the most rural county in Massachusetts, the member towns of the Franklin Regional Council of Governments have long recognized the value of sharing services and expenses. “CIC grants have been a great and invaluable resource for the expansion of regionalization efforts in Franklin County,” said Linda Dunlavy, executive director of the Franklin Regional Council of Governments. “CIC funds have enabled us to open a regional dog shelter that serves 14 towns and has housed more than 200 dogs and adopted out 40% since its opening in late 2012. CIC funds have also created a regional health district that brings efficiency, accessibility, and professionalism to 10 small, rural towns. Including the 37 projects receiving funding this year, the Patrick administration has invested $10.25 million in 95 projects over a three-year period.

Diocese Announces Plan to Rebuild Cathedral High
SPRINGFIELD — The Diocese of Springfield confirmed last week that it will rebuild the tornado-damaged Cathedral High School, aided by approximately $29 million in federal disaster aid. Bishop Timothy McDonnell said in a press conference that the diocese will obtain demolition permits and move forward with design of the new school at that site in East Forest Park. A $38.5 million agreement was announced between the Federal Emergency Management Agency and the diocese for damage to the school caused by a tornado on June 1, 2011. FEMA will cover about $29 million for tornado damages and related costs, and the diocese will cover the balance. The FEMA funds are earmarked for Cathedral and St. Michael’s Academy middle school and preschool, also damaged and relocated after the tornado. The diocese also recently reached a settlement of nearly $50 million with its insurance company, Catholic Mutual, for the Cathedral damage. Nearly $10 million more in insurance funds were issued for other diocesan buildings and costs. Cathedral has been located at a leased school in Wilbraham since the tornado, and St. Michael’s is currently housed in what used to be Holy Cross Elementary School in West Springfield.

State Awards $11 Million to Housing Authorities
BOSTON — Continuing the effort to preserve the state’s public housing authority portfolio and increase the number of affordable public housing units available, the Patrick administration announced nearly $11 million in funding to improve, preserve, and reoccupy the Commonwealth’s state-funded public housing units. The capital funding will be used for a number of initiatives, including supporting repairs required to get current vacant units back online, creating more accessible units for people with disabilities, and preserving the current housing stock by making the units more sustainable. “Affordable public housing is in high demand across the state,” said Undersecretary of Housing and Community Development Aaron Gornstein. “These additional dedicated funds will provide local housing authorities with new tools and funding to extend the life of our current housing stock and also more quickly house seniors and families looking for affordable housing.” The four types of funding being awarded to 170 housing authorities are: $3,598,970 in sustainability funds to upgrade building components in order to save energy and water; $4,125,365 in health and safety funds to reduce site and common-area hazards that could pose a danger to residents; $721,053 in vacant unit funds to renovate and reoccupy units needing costly rehabilitation that have been vacant for more than 60 days; and $2,517,778 in accessible unit funds to help housing authorities make progress toward having 5% of their units fully accessible. 

Penn National Snags Slot Parlor License
PLAINVILLE — The state Gaming Commission awarded the state’s lone slots parlor license to Penn National Gaming for its proposed development at the Plainridge Racecourse in Plainville. The decision came down to Penn National or the proposed Massachusetts Live! slots parlor in Leominster. A third proposal in Raynham, known as Parx Casino at Raynham Park, was out of the running early. The planned slots parlor in Plainville will include 1,250 slot machines as well as a sports bar, a high-end restaurant, and a food court. Harness racing will continue at the track. Penn National had originally pursued a resort casino in Springfield’s North End, but Mayor Domenic Sarno close to back a larger, competing proposal by MGM Resorts International. The new Plainville parlor could open as soon as spring 2015, according to Penn National, but a temporary slots parlor may be constructed within the next six months at the track if the commission approves. The price of the license is $25 million and must be paid within 30 days.



Palmer Site Owner Seeks to Block Mohegan Sun Bid
PALMER — The owner of the Palmer property where Mohegan Sun had proposed a casino are seeking a court judgment to prevent the company from pursuing another gambling project at Suffolk Downs in Revere. Northeast Realty Associates, which controls 152 acres in Palmer, argues that the casino company violated contracts with the landholder by allegedly engaging in secret talks with racetrack representatives, then intentionally ran a lukewarm referendum campaign for the Palmer project, contributing to its defeat at the polls in November. The lawsuit came less than a week before Revere residents went to the polls to approve a citywide referendum on Mohegan Sun’s plans to build a $1.3 billion gambling resort on land belonging to Suffolk Downs. In a statement, Mohegan Sun said the Connecticut-based company “devoted over five years and more than $25 million to create a world-class resort casino proposal in Palmer. But on Nov. 5, 2013, the community made a decision, which we have respected.”

Employment on Rise for Manufacturing in U.S.
WASHINGTON, D.C. — Manufacturing jobs accounted for 18.6% of all employment growth in January, a sign of strength for the U.S. manufacturing sector, said Scott Paul, president of the Alliance for American Manufacturing (AAM). “It’s still far from a resurgence, but the jobs picture in manufacturing is certainly better than it was last decade. And the latest jobs report offers fresh evidence that it is possible to create manufacturing jobs in America again.” However, he added, “we believe better public policies would bring about a real resurgence. That would mean balancing our trade in goods, investing in infrastructure and training, combating currency manipulation overseas, and boosting innovation. And even though manufacturing may be one of the brighter spots in this jobs report, we’re still well below the pace needed to achieve the president’s goal of adding 1 million such jobs in his second term.”

Hiring Outlook Brightens in Landscape Architecture
WASHINGTON, D.C. — Business conditions remained stalled for the landscape-architecture profession in the fourth quarter of 2013, but may be entering a turnaround, according a survey by the American Society of Landscape Architects (ASLA). Although billable hours and inquiries for new work dipped during the fourth quarter, about half of all firms indicated plans to hire in early 2014 — a sign they are expecting more work. Some 75.7% of respondents reported stable to improved billable hours, a decline from the third quarter of 2013 (80.6%). Another 74.9% reported stable to higher inquiries from potential clients for new work, similar to what had been reported in the previous quarter (78%). Year to year, 81.5% of respondents indicated that fourth-quarter billable hours remained about the same or were higher. Additionally, 81.5% claimed steady or increased inquiries for new work compared to the fourth quarter of 2012. Of all firms with two or more employees, nearly half (48.5%) indicated they plan to hire in the first quarter of 2014. Half of all firms with 50 to 99 employees plan to hire an experienced landscape architect in the first quarter of 2014.

Briefcase Departments

Route 5 Tunnel to Be Closed for Several Weeks
WEST SPRINGFIELD — The Mass. Department of Transportation announced recently that the tunnel that carries Route 5 under the Route 20 rotary adjacent to the North End Bridge in West Springfield will be closed in both directions for several weeks for repairs. Vehicles will be detoured off Route 5 and up the ramp to the rotary for Route 20 and the North End Bridge. Vehicles heading in either direction will travel through the rotary and rejoin Route 5 at the second rotary exit. The closure is required because of advanced deterioration in the tunnel’s concrete driving surface. Numerous attempts to make interim repairs have demonstrated that more extensive repair efforts are necessary. During the closure, the deteriorated portions of the roadway through the tunnel will be chipped to a solid base prior to filling with a rapid-setting concrete, which must be specially ordered. MassDOT encourages drivers to allow for extra time when traveling through the detour and to be mindful of the additional vehicles traveling through the rotary.

Made in the Berkshires Seeks Artistic Submissions
PITTSFIELD — Berkshire Theatre Group will begin accepting submissions on March 10 for the fourth annual Made in the Berkshires festival, which will take place Oct. 10 and 11 at both the Colonial Theatre in Pittsfield and the Unicorn Theatre in Stockbridge. The festival has featured cutting-edge theatrical works performed as staged readings, live music, film, short stories, and dance in a festival atmosphere. New and innovative pieces, as well as established work, will be presented by local Berkshire County playwrights, actors, directors, musicians, and performers. The festival will be curated once again by local artists Hilary Somers Deely and Barbara Sims. Submitting artists must live and work at least part-time in the Berkshires. Submissions may include short and full-length plays, music, poetry, short stories, performance art/spoken word, film, and dance. All written material must include the artist’s name, address, and contact information, including phone number. Written material must be bound, with two copies submitted. Music, dance, film, and visual art must include two CDs or two DVDs with the artist’s name, address, and contact information, including phone number and e-mail address. Filmmakers must include the aspect ratio.

No online submissions will be accepted, and materials will not be returned. The deadline for submissions is May 15. Mail submissions to: Made in the Berkshires Submissions, 111 South St., Pittsfield, MA 01201.

Holyoke Medical Center Helps Launch New Phase of Health Info Exchange
HOLYOKE — Gov. Deval Patrick and Health and Human Services Secretary John Polanowicz recently witnessed the launch of phase two of the Mass HIway Health Information Exchange. Holyoke Medical Center (HMC) joined forces with Beth Israel Deaconess Hospital (BIDMC), Tufts Medical Center, and Atrius Health to demonstrate, for the first time, how healthcare providers will have the ability to instantly locate, request, and retrieve medical records from other participating providers from across the Commonwealth on a secure, interconnected system. The event was broadcast live and joined all four healthcare providers via video link. “This technology is a win for all of us. It will help us reduce health costs, improve patient care, and save lives,” Patrick said. “Accurate health information is the fuel of our healthcare system, and these innovations will allow providers to treat patients with greater accuracy and speed.” At the simulation, Emergency Department (ED) clinicians at BIDMC simulated an encounter where a patient presented to the ED as combative, non-compliant, and unable to give a reliable past medical history. Using the Mass HIway, doctors were able to discover the patient had previously been treated at HMC, Atrius Health, and Tufts, and, using the Mass HIway, they were able to request and retrieve these records at the touch of a button. This provided the BIDMC clinicians to instantly have a comprehensive medical history on the patient and allowed the care team to avoid drug-to-drug and allergic reactions, unnecessary or duplicative testing, and delayed diagnosis. “Holyoke Medical Center continues to be a leader in the area of health-information exchange,” said HMC Vice President of Operations and chief information officer Carl Cameron. “The Holyoke Medical Center HealthConnect currently has 60 healthcare providers in its exchange, and when the Mass HIway is fully opened up, these 60 providers will also have the ability to exchange information through the highway.” The mission of the Mass HIway is to deploy a secure electronic health-information exchange that is accessible to all healthcare systems statewide regardless of affiliation, location, or differences in technology, and to and serve as a tool for the Commonwealth’s healthcare community to improve coordination, quality, patient satisfaction, and public-health reporting while containing costs. The Mass HIway is operated by the state’s Executive Office of Health and Human Services.

Construction Industry Rebounds in January, Gains 48,000 Jobs
WASHINGTON, D.C. — The construction industry gained 48,000 jobs in January, according to the Feb. 7 employment report by the U.S. Department of Labor. Non-residential construction gained 21,000 jobs, representing a significant rebound from the 14,100 jobs lost by the segment in December. Non-residential construction accounted for 47.7% of January’s total construction-industry job gain and 28.1% of the construction-industry job gain in the past year. The national construction unemployment rate expanded to 12.3% on a non-seasonally adjusted basis in January, compared with 11.4% in December. This was due to a combination of seasonal factors and may be impacted by the end of the government’s long-term unemployment benefits program, which may have induced people look for work in construction, an industry generally known to be in recovery.

Briefcase Departments

Community Partnerships Created to Promote Health
BOSTON — Gov. Deval Patrick’s administration recently announced more than $40 million in grants to nine community-based partnerships — including networks in Holyoke and Pittsfield — to help fight chronic illness and improve health outcomes while reducing healthcare costs. Part of the Prevention and Wellness Trust Fund, this first-in-the-nation effort is part of a $60 million grant over four years created by the Legislature and administered by the Department of Public Health (DPH). “In Massachusetts, we believe that healthcare is a public good, and every resident deserves access to affordable, quality care. These grants will help us reach that goal by funding the intervention strategies proven to work,” Patrick said. The fund supports community-based partnerships in achieving measurable health goals through research-based interventions. Working together, municipalities, healthcare systems, community organizations, businesses, regional planning organizations, and schools design community-specific programs addressing issues such as hypertension, smoking, falls prevention among older adults, and pediatric asthma. As a condition of funding, each partnership must achieve specified health and cost-saving benchmarks on at least two of the four health issues prioritized by the trust. “As a registered nurse, I’ve seen the power of prevention in improving health outcomes, and the importance of local partnerships in driving change at the community level,” said DPH Commissioner Cheryl Bartlett. “These Prevention and Wellness Trust Fund grants will promote both of these worthy objectives in cities and towns across the Commonwealth.”  Funded partnerships will work to reduce rates of the most prevalent and preventable health conditions, advance healthy behaviors, increase the adoption of workplace wellness or health-management programs, and address health disparities. Each of the nine grantees will receive up to $250,000 for the first phase of their work. As grantees demonstrate their readiness to implement interventions in community and clinical settings, they will receive additional funding between $900,000 and $1.5 million for each of the next three years. The amount each partnership receives depends upon population covered and the number of conditions addressed. The two local coordinating organizations are Berkshire Medical Center (partnering with Berkshire County Boards of Health, Berkshire United Way, Berkshire Regional Planning Commission, Berkshire Public Health Alliance, Fairview Hospital, North Adams Regional Hospital, North Berkshire Community Coalition, and Tri-town Health Department District); and Holyoke Health Center (partnering with the city of Holyoke, Greater Holyoke YMCA, Holyoke Medical Center, River Valley Counseling Center, and Western Mass Physician Associates). For more information on the Prevention and Wellness Trust Fund, visit mass.gov/pwtf.

Markey, Warren Press for Release of Heating Assistance
WASHINGTON — With millions of families facing harsh weather and economic conditions and nearly $490 million still remaining this year for the nation’s low-income heating-assistance program following recent passage of the omnibus spending bill, U.S. Sens. Edward Markey and Elizabeth Warren called on the Obama administration to immediately distribute those energy assistance benefits to Massachusetts residents. In a letter sent to Health and Human Services Secretary Kathleen Sebelius, the senators argue that budgetary certitude created by passing the 2014 appropriations bill allows the department to immediately distribute the almost $490 million remaining in the Low Income Home Energy Assistance Program (LIHEAP). Temperatures have fallen in recent weeks to dangerous levels, but home heating prices have risen more than forecast. “A combination of frigid temperatures and higher than anticipated energy prices is creating a dire situation for many New England households,” according to the letter. “Releasing the nearly $490 million in remaining LIHEAP funds for this year as soon as possible is imperative to ensure that families who have already been stretched to the limit by these cuts can continue to pay their heating bills. We urge HHS to immediately release Massachusetts’ share of all remaining heating-assistance funds for the current year.” LIHEAP funding has also been cut by about one-third over the last four years, leading to a reduction in benefits and the number of families receiving assistance in many states. Markey and others have called for a restoration of full funding for the LIHEAP program to $5.1 billion per year.

Massachusetts Adds 10,300 Jobs in December; State’s GDP on Rise
BOSTON — The Executive Office of Labor and Workforce Development (EOLWD) recently reported that the Bureau of Labor Statistics’ (BLS) preliminary estimates show that Massachusetts added 10,300 jobs in December, and the total unemployment rate was 7.0%. Over the year, the unemployment rate was up 0.3% from the December 2012 rate of 6.7%. The private sector added 10,400 jobs in December as professional, scientific, and business services; trade, transportation, and utilities; leisure and hospitality; financial activities; and other services all added jobs. Over the year (December 2012 to December 2013), Massachusetts added 55,500 jobs in total, 54,500 of which were in the private sector. The December 2013 estimates show 3,237,600 Massachusetts residents were employed and 243,800 were unemployed, for a total labor force of 3,481,300. The December labor force decreased by 1,900 from 3,483,200 in November 2013, as 100 more residents were employed and 1,900 fewer residents were unemployed over the month. The labor force was an estimated 500 below the 3,481,800 December 2012 estimate, with 10,600 fewer residents employed and 10,300 more residents unemployed. Meanwhile, Massachusetts real gross domestic product grew at an estimated annual rate of 5.5% in the fourth quarter of 2013, according to the MassBenchmarks Current Economic Index. MassBenchmarks is the journal of the Massachusetts economy published by the UMass Donahue Institute based in Hadley in collaboration with the Federal Reserve Bank of Boston. It reports that the state’s economy is growing faster than the nation’s as a whole. The U.S. Department of Commerce reports national real gross domestic product grew at an annual rate of 3.2% during the same period. In 2013, state economic growth outpaced that of the nation in three of four quarters, according to the report. “The Massachusetts economy appears to be benefiting from improving conditions in national and international economies, and by increasingly confident households who are demonstrating a willingness to spend,” writes Alan Clayton-Matthews, MassBenchmarks senior contributing editor and associate professor of economics and public policy at Northeastern University.

Briefcase Departments

EDC Head Blair to Step Down
SPRINGFIELD — Allan Blair will retire as president and CEO of the Western Mass. Economic Development Council at the end of 2014 after 18 years at the helm of the regional economic-development agency. A search committee, headed by Peter Straley, chairman and CEO of Health New England, will seek his replacement. The EDC provides support for companies looking to locate or grow in the region, through services including real-estate searches, workforce, manufacturing supply chain, data and demographics, incentives and financing, new market opportunities, service procurement, and academic research and development opportunities. The EDC also acts as an umbrella group for other business-oriented organizations, including the Affiliated Chambers of Commerce of Greater Springfield, the Greater Springfield Convention and Visitors Bureau, the Amherst Business Improvement District, the Westfield Business Improvement District, the Northampton Business Improvement District, the Springfield Business Improvement District, the Westmass Area Development Corp. and the Westover Metropolitan Airport and Westover Metropolitan Development Corp.

DevelopSpringfield Announces Grant for Façade Improvement
SPRINGFIELD — DevelopSpringfield, a nonprofit 501(c)(3) development corporation, announced that it has awarded a $10,000 grant for façade improvements to the New England Farm Workers Council for renovations to the International Bier Garten located at 1600 Main St. The grant is made possible under the organization’s Corridor Storefront Improvement Program, which provides grants of up to $10,000 for exterior improvements to first-floor storefronts located on State and Main streets in Springfield. The recently awarded funds were used to revitalize and repair the existing façade to meet building-code and safety standards, and to comply with Springfield Historic Commission requirements. The grant is supporting more than $70,000 in improvements on the façade alone. The full project is a partnership between the New England Farm Workers Council and the Fort Restaurant and is a key component efforts toward revitalization in downtown Springfield. The project partners estimate that the project will bring more than $2 million annually in economic benefit to the community. They also hope the project will be an example of how economic revitalization can spur downtown Springfield’s renaissance and support the city’s transformation into a thriving cultural and entertainment hub for Western Mass. For more information on the Corridor Storefront Improvement Program, visit www.developspringfield.com and click on ‘programs,’ or contact Jay Minkarah, DevelopSpringfield president and CEO, at (413) 209-8808 or [email protected].

Construction Employment Declines in December
WASHINGTON, D.C. — Construction employment declined by 16,000 in December, but the industry unemployment rate fell to 11.4%, according to an analysis of new government data by the Associated General Contractors of America. Association officials noted that the new employment data was likely impacted by cold weather, but also reflects underlying weakness in the construction sector. “Given the variability of weather, especially in winter, the downturn in December is not cause for alarm,” said Ken Simonson, the association’s chief economist. “The data does show how uneven the recovery remains with residential construction doing very well, but the public sector remains weak, and private nonresidential construction is mixed.” Construction employment totaled 5,833,000 in December, an increase of 122,000 from a year earlier, Simonson noted. But while employment grew by 2.1% during the past year, construction employment remains nearly 1.9 million below the sector’s April 2006 peak. Meanwhile, the unemployment rate for workers actively looking for jobs and last employed in construction declined from 13.5% in December 2012 to 11.4% last month. Non-residential construction firms lost 22,900 new jobs in December, while residential firms added 6,200 jobs. Non-residential specialty trade contractors lost 12,900 jobs for the month, the most of any segment, while heavy and civil engineering firms — which are most likely to perform federal construction work — lost 8,800 jobs. Meanwhile, residential building contractors added the most new jobs during the past month, with 4,800. The number of unemployed construction workers dropped from 1,105,000 in December 2012 to 958,000 in December 2013, a decline of 147,000. Yet the industry added only 122,000 new jobs during the same time frame. The shrinking pool of available construction workers may be one reason so many firms report having a hard time finding qualified workers, Simonson noted. Association officials said the outlook for construction could be helped by new investments in infrastructure and other construction programs. They urged Congress to finalize Water Resources Development Act legislation to invest in ports and other waterways. They also said Congress and the Obama administration should work together to find a way to pay for needed repairs to aging roads and bridges before the current transportation legislation expires at the end of September. “If the economy continues to expand and Washington can work together to make needed infrastructure investments, firms should be able to add significantly more jobs in 2014,” said Stephen Sandherr, the association’s CEO. “But Congress and the administration need to set aside partisan differences and find a way to work together in the interest of our economy.”

Holiday Retail Sales Down in Massachusetts
BOSTON — Holiday retail sales in Massachusetts fell short of analysts’ expectations in 2013. Sales in November and December climbed just 2% from the same period in 2012, well below the 3.5% jump expected by the Retailers Assoc. of Massachusetts. There was one less weekend between Thanksgiving and Christmas, and a snowstorm on the second weekend of December further limited the amount of time shoppers spent in stores and hurt impulse buying, which account for one-third of all department-store purchases. On the national level, the National Retail Federation said total U.S. holiday sales jumped 3.8% to $601.8 billion in November and December, up from a 3.5% increase recorded in the same two months of 2012. Meanwhile, the U.S. Commerce Department said retail sales, excluding auto purchases, climbed 3.7% in December over the same month in 2012. But department-store sales fell 3.3%, compared with December 2012.

New England Economy Showing Signs of Life
WASHINGTON, D.C. — The outlook for New England is “generally positive” as the economy continues to expand modestly and most industries report better sales and improving business conditions, according to a Federal Reserve survey. The report, known as the Beige Book, found manufacturers reporting increased sales, healthcare consulting booming as the industry grapples with the Affordable Care Act, and median prices for homes rising in most of the region. However, hiring remains subdued in most industries, and wage increases remain modest at best. Nationally, the survey found moderate or modest economic growth and increased hiring in most of the country. It noted that harsh winter weather in recent weeks had a minor impact on consumer spending, which accounts for about 70% of the nation’s economic activity. Although home sales in New England were lower than a year ago, real-estate markets in the region experienced increased prices for single-family homes, according to the survey. The Fed said the small sales decline could be the result of low inventories, a pause after strong sales earlier in the year, or uncertainty among consumers following the partial government shutdown in October. But “New England realtors agree that 2013 has been a good year overall,” the report says, “and they remain optimistic about sales increases.” Commercial real-estate leasing remained steady, while construction activity increased, boosting building in health, education, life sciences, and commercial sectors. Manufacturers reported increased or steady sales, and retailers also reported solid performances.”

Berkshire Bank Awards Scholarships for Service
PITTSFIELD — Berkshire Bank has announced it will honor 30 high-school seniors in Massachusetts, New York, Connecticut, and Southern Vermont through its annual Scholarship Awards Program. The program will award $45,000 in total scholarship dollars to students who have exemplified community service through their volunteer efforts, have been successful academically, and have a demonstrated financial need. Additionally, students must attend a school that is located in a community with a Berkshire Bank office. “Berkshire Bank believes that one of life’s most exciting moments is going to college, and we want to do our part to help make it more affordable for students in need, said Lori Gazzillo, director of the Berkshire Bank Foundation. “This program exemplifies our support of education and demonstrates our commitment to the communities we serve. Our employees rally around this program by serving as reviewers of all of the applications that we receive from so many well-deserving students.” Through the program, 30 $1,500 scholarships will be awarded to high-school seniors who will be attending a two- or four-year college in the fall. Applications will be evaluated based on demonstrated volunteerism in the community and through participation in extracurricular school activities. In addition, applicants must have a GPA of at least 3.0 and a financial need (total family income under $75,000). An independent panel of bank employee volunteers will review all applications and select this year’s winners. Students can apply online at www.berkshirebank.com/scholarships. To be considered, all applications must be submitted online by March 26 at 4 p.m. For additional information, contact the Berkshire Bank Foundation at [email protected].

Briefcase Departments

State Touts Benefits of Energy-efficiency Projects
BOSTON — State Energy and Environmental Affairs (EEA) Secretary Rick Sullivan recently announced that energy-efficiency improvements by homeowners, businesses, and government agencies across the Commonwealth from 2010 through 2012 resulted in significant electric and natural-gas savings, as well as reductions in greenhouse-gas emissions. In total, the Commonwealth’s three-year statewide energy-efficiency plans delivered 2,390 gigawatt hours, 49 million therms, and nearly 1.4 million metric tons of energy savings and greenhouse-gas reductions. These reductions are equivalent to the annual electricity consumption of more than 314,000 homes, the natural-gas usage of 52,000 homes, and, in terms of greenhouse-gas reduction, the equivalent of taking nearly 290,000 cars off the road. The plans were authorized by the Green Communities Act of 2008 (GCA) and approved by the Department of Public Utilities in January 2010. “This year’s report shows that more than 14,000 small businesses and 6,000 large businesses engaged in energy-efficiency efforts in 2012, proving once again that efficiency is a win-win with economic and environmental benefits alike,” said Sullivan. “By implementing these three-year plans, the Patrick administration is reducing greenhouse-gas emissions, cutting energy use, and creating jobs.”  Under the three-year plan, Massachusetts committed to one of the most ambitious energy-efficiency efforts in the nation, investing more in energy efficiency per capita than any other state. The 2013-15 plans, underway now, are equally ambitious, projected to deliver nearly $9 billion in benefits from an investment of $2.2 billion. The electric savings are projected to reduce retail sales of electricity by 2.6% in 2015. These results are significant enough to be included in long-term load forecasting by the Independent System Operator New England (ISO-NE), the organization responsible for determining New England’s grid reliability. “Massachusetts’ energy-efficiency programs are delivering nation-leading economic and environmental benefits to residents and businesses throughout the Commonwealth,” said Department of Energy Resources Commissioner Mark Sylvia. “I thank the EEAC members, the utilities, and energy-efficiency service providers that deliver the Mass Save programs for continuing to push the envelope in making energy efficiency our first fuel.” The Global Warming Solutions Act, signed by Gov. Deval Patrick in 2008, made the Clean Energy and Climate Plan for 2020 a requirement. The plan mandates a gradual greenhouse-gas emissions reduction and a scheduling of emissions goals that is designed to spur innovation and promote research and development in the clean-energy industry. The Commonwealth has set a 2020 reduction target of 25% below 1990 levels, and has released a plan outlining a portfolio of policies and programs to meet the goal. This year, Patrick set a new solar goal after reaching the previous goal of 250 megawatts four years early. The Commonwealth now aims to install 1,600 megawatts of solar capacity by 2020. The clean-energy revolution is yielding economic benefits as well, with 11.8% job growth in the last year and 24% growth in the last two years; nearly 80,000 people are employed in the clean tech industry in Massachusetts.

Construction Spending Increases as Private-sector Demand Grows
WASHINGTON, D.C. — Total construction spending increased between October and November, and for the year, amid growing private-sector demand, according to an analysis of new Census Bureau data by Associated General Contractors of America. Association officials noted, however, that the spending levels were held back by declining public-sector investments for both the month and the year. “The non-residential construction spending figures are even more positive than they appear, with most categories now positive year over year,” said Ken Simonson, the association’s chief economist. “The outlook appears favorable for many types of private non-residential and multi-family construction, but remains flat or negative for public spending.” Construction put in place totaled $934 billion in November, rising 1.0% since October and 5.9% since November 2012. Private residential construction spending increased by 1.9% in November and jumped 17% from a year earlier. Private non-residential spending climbed 2.7% for the month and 1.0% year over year. Public construction spending dropped 1.8% for the month and 0.2% over 12 months. Over the past 12 months, the biggest jump in construction spending has occurred in new multi-family construction, which rose 0.9% for the month and 36% year over year. The lodging sector recorded the second-highest annual gain, with spending rising 32.7% for the year and 0.3% for the month. Spending on communications facilities experienced the largest monthly increase, jumping 11.2% in November, although it is still down 10.5% for the year. The largest private non-residential category, power construction — which includes oil and gas field and pipeline projects as well as power plants, renewable power, and transmission lines — increased by 3.3% in November but is actually down 24.2% for the year. Simonson noted, however, that there was a surge in power construction during the last quarter of 2012 as contractors rushed to finish wind projects before the expected expiration of the wind-production tax credit at the end of 2012. Those credits were extended for projects that broke ground by the end of 2013, explaining the more recent surge. “Both the electricity and oil and gas components of power construction should do well in 2014,” he added.

MMS, AMA Oppose E-cigarettes for Youth
WALTHAM — A resolution on electronic cigarettes led the list of the policies adopted by physicians of the Mass. Medical Society (MMS) at its interim meeting held last month. The interim meeting brings together hundreds of Massachusetts physicians from across the state to consider specific resolutions on public-health policy, healthcare delivery, and organizational administration by the society’s House of Delegates, its policy-making body. Resolutions adopted by the delegates become policies of the organization. Delegates voted for a resolution stating that the MMS opposes the marketing, sales, and use of e-cigarettes and other nicotine-delivery products among youth, particularly for people under the age of 18, and urging the MMS top keep working with state lawmakers and officials to develop strategies to prevent the marketing, sale, and use of those products for individuals within that age group. In voting for the policy, MMS noted that the use of electronic cigarettes by U.S. middle- and  high-school students (grades 6-12) more than doubled from 3.3% in 2011 to 6.8% in 2012, according to the U.S. Centers for Disease Control. The society also expressed concern that the nicotine-containing vapor generated from the battery-powered e-cigarettes is often flavored, which can make them more appealing to young people, and that the use of e-cigarettes has the potential negative impact of nicotine on adolescent brain development and may encourage young non-smokers to become users of conventional cigarettes or other tobacco products. The statement coincides with the American Medical Society’s similar concern over e-cigarettes. At the recent interim meeting of its own House of Delegates, the AMA adopted policy advocating for the U.S. Food and Drug Administration (FDA) to extend its tobacco regulations to include all non-pharmaceutical tobacco and nicotine products, including e-cigarettes, pipes, cigars, and hookahs. The AMA said FDA oversight of these products is necessary in order to ensure safety and proper labeling, and to deter adulteration and the sale of tobacco products to minors. The AMA’s existing policy on e-cigarettes from 2010 recommends that they be classified as drug-delivery devices, subject to the same FDA regulations as all other drug-delivery devices, and supports prohibiting the sale of e-cigarettes that are not FDA-approved. “This policy recommendation for FDA could help ensure that e-cigarettes and other tobacco products have proper oversight and regulation to limit the detrimental health consequences that come from these products,” said AMA board member Dr. Albert Osbahr III. “Very little data exists on the safety of these tobacco and nicotine products, and the FDA has warned that they are potentially addicting and contain harmful toxins.”

Massachusetts Adds 6,500 Jobs in November
BOSTON — The Executive Office of Labor and Workforce Development reported that the Bureau of Labor Statistics’ (BLS) preliminary estimates show that Massachusetts added 6,500 jobs in November, and the total unemployment rate was 7.15%. Over the year, the unemployment rate was up 0.4% from the November 2012 rate of 6.7%.  The private sector added 4,900 jobs in November, particularly in professional, scientific, and business services; manufacturing; financial activities; education and health services; information; and construction.  Since December 2012, Massachusetts has gained 46,600 jobs. Over the year, from November 2012 to November 2013, Massachusetts added 55,300 jobs in total, 53,800 of which were in the private sector. Revised BLS estimates show that 9,400 jobs were added in October. The unemployment rate is based on a monthly sample of households. Job estimates are derived from a monthly sample survey of employers.

Cover Story
LED Technology Could Be a Game Changer for Zasco Productions

COVER1213cMike Zaskey says LED (light-emitting diode) technology has been on his radar screen for more than a decade now.
He understood its vast potential to open new doors for the company he founded, Chicopee-based Zasco Productions, by enabling it to contend for projects — and there are many of them — that could benefit from the technology’s ability to produce a sharp, bright, high-quality video display image, even in direct sunlight, a considerable improvement over projection technology.
But he also understood its high price tag and how difficult — especially years ago, when this technology was considerably more expensive — it would likely be to recover it. “Virtually unattainable” was the phrase he used to describe the product for most of that decade.
Indeed, he and Barry Gadbois, manager of Operations and Business Development and also video director for the company, would spend countless hours at a whiteboard in Gadbois’ office crunching numbers and trying to get them to work.
Finally, last spring, they were confident that they could.
So Zasco proceeded with the purchase of Oracle LED Systems’ Black Widow HD9 indoor/outdoor display modules — 80 2-by-2-foot tiles, to be exact, which can be joined to create two 10-by-16-foot screens or a host of other configurations. The company’s marketing piece to prospective customers calls it “New England’s premier visual display system,” and then goes into much more detail, with bullet points such as these:
• “True 9mm resolution, 3-in-1 SMD LEDs for superb clarity”;
• “7,000 nits of brightness so that every image leaps off the screen, even in direct sunlight”;
• “Weather-resistant to shine through the toughest conditions!”;
• “Ability to create curved surfaces, plus an innovative frameless flex kit, and other features, make virtually any scenic application possible”; and
• “A network of nationwide cross-rental partners means that we can build nearly any size or number of displays!”

Rays of Hope event

Barry Gadbois says the LED display used at the Rays of Hope event last fall is a good example of how the technology allows groups to make “eye contact” with large audiences.

Slicing through all those numbers, letters, exclamation points, and technical terms (a nit, by the way, is a unit of visible light intensity, and ‘9mm resolution’ means the dots, or pixels, are just 9 millimeters apart, creating very high resolution), Zaskey said this roughly $300,000 acquisition has the vast potential to be a “game changer” for Zasco,  which started nearly 25 years ago as a wedding-video operation and has morphed into a multi-faceted event-production company that has handled everything from college commencement ceremonies to annual meetings for major corporations, to BusinessWest’s 40 Under Forty gala.
“This technology puts us on a different playing field,” he said, noting that the technology was used for concerts at this year’s Big E, the 20th annual Rays of Hope walk in October, and other events. “It’s a door opener for us.”
Gadbois agreed.
“There’s a certain level of client that requires service on a large scale that was inaccessible to us because we couldn’t meet the largest part of their needs, which was display technology like this,” he explained. “Now, we can go to clients who were inaccessible before and tell them, ‘not only can we cover your display needs, we can do it with the best stuff on the market, and we’re also a turn-key provider for all the other services you need.
“It’s a game changer for us,” he went on, “because it gives us a chance to introduce ourselves, and our core services, to customers who may have passed us over before because we didn’t have these displays.”
Zasco said the Black Widow system also gives Zasco an opportunity to fill out its calendar and provide a more level revenue stream, an important consideration for any business. He noted that the company is most busy in the late spring and early summer, with college commencements, corporate meetings, and other events, “but in July, we’re often sitting here waiting for the phone to ring. This will hopefully make it ring more often.”
For this issue, BusinessWest takes an indepth look at the Zasco company, its latest investment in technology, and how it has taken Zaskey and Gadbois from their work at that whiteboard to a new assignment — aggressively rewriting the business plan to reflect new opportunities.

Nit Withstanding
As he talked about the Black Widow, and LED technology in general, Zaskey drew a number of comparisons to HD televisions.
They’ve been around for years, he noted, and the technology has greatly improved while the price has come down considerably. In other words, the first person on the block to get one paid considerably more than someone who waited a few years. Meanwhile, that first one in has a set that today isn’t exactly obsolete, but it’s not as good as the newer editions.
“Like everything else that’s technology-driven, the quality increases and the price comes way down,” he explained, referring to LED systems. “And that gives us a competitive advantage, especially over some companies in the eastern part of the state that invested in this technology in the late ’90s and are possibly still trying to recoup those very large investments. It’s older technology, and they have to charge a premium for it.”
This phenomenon essentially explains what all the work with that whiteboard was all about, said Zaskey, adding that, while an investment in this kind of technology is always somewhat of a gamble, especially for a company of this small size, he and Gadbois were researching and waiting for something that they could consider a relatively safe bet.
And they believe they’ve made one, with the purchase of a system that is versatile, affordable (or at least much more so than what was on the market years ago), and won’t be obsolete before the end of next year, or this decade.
“We bought a product that’s very mature — this is as high a resolution value as we’ve seen in an outdoor display, and it’s probably as high a resolution value as anyone is going to bother to make,” said Gadbois. “The expense of developing something better than we have is probably prohibitive.”
The LED technology ushers in a new chapter in the life of an intriguing local company, one that got its start when Zaskey was in middle school learning how to handle a video camera.
What started as a hobby — videotaping weddings for family and friends of the family — eventually became a business, thanks to startup financing from his father. By the time he graduated from high school, Zaskey was starting to diversify into corporate work, such as training videos.
Eventually, companies that hired him started asking about how to display those videos at events. He saw an opportunity and invested in projection, lighting, and audio equipment, and essentially changed the course of what by then had become Zasco Productions.
Over the past 20 years, growth has been consistent, averaging about 10% annually, he said, and while most of the company’s work is in this region, it has been involved in projects in Las Vegas and other major cities, mostly east of the Mississippi.
Fast-forwarding to when LED technology came onto his radar screen, Zaskey said that, business-wise, the need for such an investment was growing because large-screen displays were now commonplace at corporate events and gatherings such as commencements, and projection technology has its limitations.
“The challenge has always been displaying video outside, in direct sunlight, or where ambient lighting conditions cannot be controlled. LED technology makes that possible. Projection outside is simply not an option — there’s just no projection that can compete with sunlight.”

Barry Gadbois

Barry Gadbois says consumers are becoming more demanding when it comes to video presentations, and LED technology is now an expectation.

Meanwhile, a discerning public, now quite used to HD television and 150-foot-wide LED scoreboards in sports stadiums, has come to increasingly expect — and, more importantly, demand — such high-quality visual displays.
“People have become accustomed to a very high level of technology, especially when it comes to video and audio,” Gadbois explained. “No one would now consider it acceptable to go to a major-league baseball game and see a scoreboard with little white lights. We’ve come to expect a very immersive, very technically advanced experience, and the natural extension of this is that it’s trickling down; it’s not just major-league ballparks or the biggest concerts or the biggest events. People have high expectations for their experience.”
As an example, he pointed to the Big E, which had essentially gotten by with projection technology at its concerts for years, but had, with its vendor, KMJ Video (a Zasco client), reached the conclusion that the target audience wanted, and deserved, something better.
“They [KMJ] were ready to make a move and enhance the experience for their customer,” said Zaskey, “and the timing was perfect, because we had just acquired this new technology.”
That aforementioned trickle-down effect has now reached college commencements — “parents want to see their son or daughter on a big screen in a sharp, high-definition image,” said Gadbois — as well as corporate gatherings and many other kinds of events, and this phenomenon was one of the factors that led the company to invest in LED technology, and to believe it will prove to be a very fruitful investment.

Shedding Light on the Subject

Now that Zasco has made this leap forward, said Zaskey and Gadbois, the obvious challenge becames making the most of the opportunity it presents.
“Equipment like this has to be in use,” said Zaskey, underscoring the assignment that faces any business that makes a large capital investment aimed at driving new business.
Elaborating, he said the work now facing the company involves everything from aggressive marketing to educating potential customers about how LED technology can add value, as well as quality, to their events, to expanding their horizons geographically.
And when it comes to the marketing and educational components of this assignment, there are inherent challenges, said Gadbois, adding that people need to see and experience the technology to understand what it can do.
“This isn’t a product you can put in your briefcase, bring to a client, and show it to them on their conference table,” he explained. “You can’t always build a 16-foot-wide wall for people. But if they can see it … there hasn’t been anyone, including us, who hasn’t looked at this for the first time and said, ‘wow, this really looks incredible.’
“Once we realized that we had a product that showed itself so well,” he went on, “we quickly understood that we had to get this in front of people.”
Zasco had a huge display of the LED technology at the Western Mass. Business Expo in November, and has marketed the technology in many other ways as well, said Zaskey, adding that perhaps the most effective promotional vehicles have been the recent events that have put the Black Widow system to the test.
Most of the 20,000-plus participants in this year’s Rays of Hope event were able to see for themselves, said Gadbois, adding that the LED technology (one 10-by-16 screen positioned near the starting line) gave organizers an opportunity to connect with the walkers and runners more effectively than in years past, when they had only a microphone with which to communicate.
“We changed their audience experience,” he explained. “Previously, they had a stage and sound. They have a crowd of thousands of people stretched over a large area. This technology enabled people to see and also hear, which is important.
“If you’re attending this event and not visually engaged — maybe you hear parts of what’s going on, but you’re talking to people around you because you’re distracted — that’s a completely different audience experience than if you can literally make eye contact and create a little bit of a relationship with a speaking subject typically talking about something that’s powerful and designed to motivate the audience,” Gadbois went on. “When you can make eye contact with 20,000 people, that’s a pretty neat experience, and we try to help our clients understand and leverage the value of that kind of power.”
And value can come in ways beyond this eye contact, said Zaskey, adding that nonprofits can use an LED display to provide creative and highly visible exposure to sponsors, a reality that could enable the technology to essentially pay for itself in such instances.
Looking ahead, he said the company’s investment should provide opportunities on a number of levels. As he said earlier, it will open doors that had previously been closed, and, once those doors are open, enable Zasco to present its full roster of services to those clients.
It could also make the company a bigger player in the Boston area and other large municipal markets where competitors may have older LED technology and, very possibly, a higher price tag for their services.
Meanwhile, because of the growing demand for high-quality video displays, Zasco could become a vendor, or partner, with competitors who don’t have LED technology but need it to satisfy increasingly demanding clients. Zaskey called such opportunities “good consolation prizes,” meaning Zasco didn’t get the contract but did get a chance to rent out its equipment, and said these could become a new and possibly lucrative revenue source.
“If you’re not going to win the whole pie, it’s always nice to have a piece of the pie,” he explained. “And this technology will give us many more opportunities to do that.”

A Bright Future
Zaskey told BusinessWest that the term LED has gone well beyond buzzword status in recent years. It has become, in many respects, a standard and an expectation for an increasingly demanding public.
“Anything LED sparks an emotion in people,” he said. “You have LED uplighting, LED lighting in your home that’s more energy-efficient. So when people say they have LED visual displays at their event, that elicits a response from their audience and gets people excited.”
The hope at Zasco is that this emotion grows stronger in the years to come. If it does, then this investment will certainly bring a return for a company that is now, more than ever, focused on the big picture.

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

Briefcase Departments

Baystate Health to Acquire Wing Memorial Hospital and Medical Centers
PALMER — The boards of trustees of UMass Memorial Health Care (UMMHC), Baystate Health, and Wing Memorial Hospital and Medical Centers have authorized the organizations to sign a letter of intent to transfer of ownership of Palmer-based Wing Memorial to Baystate Health. The potential transaction now enters a period of review and due diligence within the organizations and in partnership with the relevant regulatory and oversight bodies. This work is expected to occur over the next several months. In the meantime, it will be operations as usual at the two organizations and at Wing Memorial. This letter of intent builds on a long-existing relationship between the two not-for-profit health systems and is also a result of the closer collaboration that UMMHC and Baystate Health announced in September, when the two systems agreed to explore a number of possible opportunities with the intent of improving quality, access, and affordability of care. Thus far, those discussions have advanced in the areas of sharing best practices in quality and population health management and jointly applying for grant funding for public-health research. The two organizations continue discussing other opportunities, including shared training methodologies and better coordination of specialty services.
“Wing Memorial Hospital has a strong, historical place in the community it serves. Our dedicated staff and employees live and work in this community, and the high-quality care they provide has earned the trust and support of our neighbors and patients,” said Dr. Charles Cavagnaro III, president and CEO of Wing Memorial Hospital and Medical Centers. “For us to potentially be part of a vibrant, local and regional health system closer to home that allows for improved access to and recruitment of specialists, access to capital investment, an accountable-care organization, and further supports for our patients and their families is a win-win. This continuum of care for our patients, which starts at our front door, is most importantly at the center of these discussions.” Added Mark Tolosky, president and CEO of Baystate Health,
“while we recognize that we are only at the beginning of a long and complex process, we are very excited at the prospect of welcoming Wing Memorial, its patients, and employees to the Baystate Health family. We at Baystate Health have a great deal in common with Wing Memorial: excellence in clinical care, common missions to improve health, well-established histories of caring for patients and our communities, and a strong shared geography.” Dr. Eric Dickson, president and CEO of UMMHC, called Wing a valued member of the UMass Memorial system since 1999. “This is a difficult decision, but it makes the most sense for the patients — who are at the heart of our decision — to become part of a regional academic healthcare system that will keep patients home, healthy, and free from needing to travel outside the area for advanced care. A potential transfer of ownership allows both of our healthcare systems to provide high-quality, safe, and affordable care, close to home.”
Neither UMass Memorial Health Care nor Baystate Health expect to change their academic affiliations as a result of the potential transfer of ownership, nor will the letter of intent limit the ability of either party to pursue other strategic opportunities.

Holyoke to Fund Facade Improvement
HOLYOKE — The City of Holyoke has awarded the Greater Holyoke Chamber Centennial Foundation $50,000 through the city’s Community Development Block Grant Program to reinstate the Facade Improvement Program (FIP), which was run by the chamber in past years. “As downtown Holyoke moves towards its revitalization, it is important to appropriately allocate funding for projects that send the message to business owners that our city is as invested in the success of their business as they are,” Mayor Alex Morse said. “This is an important program that I am excited to see return, and I am confident that these improvements will not only benefit business owners, but also the downtown community as a whole.” The funds are in the form of a grant that must be matched in equal amounts of the request up to $25,000. The Facade Improvement Program was designed to strengthen and enhance Holyoke’s business districts by restoring and improving existing facades. The FIP is administered by the Greater Holyoke Chamber Centennial Foundation with funding from the City of Holyoke Office for Community Development. It offers rebates to eligible property owners for up to 50% of the façade-improvement project cost. The minimum rebate is $2,500 for at least a $5,000 project, and the maximum rebate is $25,000 for at least a $50,000 project. “We are very excited to be able to offer this program to our downtown businesses in an effort to help them improve their facades and hopefully their business as well, said Kathleen Anderson, president of the Greater Holyoke Chamber Centennial Foundation. “We appreciate the award from the city in an effort to support downtown business. We have such beautiful architecture downtown, and this program will help to restore these buildings so that they can last for another 100 years.” Applicants should apply through the Greater Holyoke Chamber Centennial Foundation. Potential applicants may contact Kathleen Anderson at (413) 534-3376 to determine FIP eligibility and to request an application package. The funds are used strictly to renovate the front facade of a building.

State Awards $79 Million to Infrastructure Projects
BOSTON — In continuation of the Patrick administration’s efforts to stimulate job creation and support long-term economic growth, state Housing and Economic Development Secretary Greg Bialecki announced more than $79 million for 33 MassWorks Infrastructure Program grants to support development throughout the Commonwealth. “The MassWorks program is a key tool in  our growth strategy of investing in education, innovation, and infrastructure to create jobs and economic development,” said Gov. Deval Patrick. “By partnering with municipalities, these MassWorks projects will strengthen communities for generations to come.” Added Bialecki, “we remain committed to working with local communities to help identify opportunities to support growth and spur regional development. I look forward to our ongoing partnerships with municipalities across the state and private industry leaders to explore additional ways to promote continued growth in every region of the Commonwealth.” Through these grants, the state will partner with cities and towns to target investments in infrastructure such as roadways, streetscapes, water, and sewer to facilitate and support new and sustained housing and economic growth throughout Massachusetts. The 2013 application round generated 108 applications for more than $263 million in infrastructure requests. Of the 33 approved projects, 11 are in the four counties of Western Mass., including: Conway, downtown parking and safety improvements ($997,521); Deerfield, River Road roadway reconstruction ($952,463); Easthampton, Pleasant Street infrastructure improvements, phase 2 ($1.5 million); Hadley, Shattuck Road improvements ($61,815); Mount Washington, BashBish Falls Road project ($1 million); Pittsfield, streetscape improvements, phase 3 ($2 million); Savoy, Black Brook Road drainage improvements and road reconstruction ($997,112); Tolland, Route 57 improvements ($990,000); Wales, Union Road roadway and drainage improvements ($881,923); Warwick, Winchester Road paving ($495,000); and West Stockbridge, downtown improvements ($1 million). Administered by the Executive Office of Housing and Economic Development (HED), the MassWorks Infrastructure Program provides a one-stop shop for municipalities seeking funding to support housing, economic development, and job creation with a particular emphasis on assisting communities to advance multi-family housing development. Each year, the program allocates 10% of its funds to assist municipalities with populations of 7,000 or fewer complete roadway safety-improvement projects. For more information, visit www.mass.gov/eohed/massworks.

State’s Unemployment Surpasses National Rate
The Massachusetts unemployment rate in November surpassed the national rate for the first time in more than five years, suggesting weaker conditions in the Bay State even as the national economic recovery accelerates. The state unemployment rate was 6.4% in April, compared to 7.5% nationally. In November, the state rate was 7.1%, compared to 7% nationally, according to the state Executive Office of Labor and Workforce Development. It was the first time since May 2007 that state unemployment exceeded the national rate. Economists said automatic federal budget cuts, known as sequestration, have taken a disproportionate toll on the state economy because of the high concentration of research institutions and defense contractors here that rely on federal grants and other funding. A recent report by the UMass Donahue Institute estimated that sequestration has cost the state about 14,000 real or expected jobs in roughly the past year. It also estimated that the cutbacks reduced the state’s economic output by $1.4 billion, resulting in a $63 million decrease in state tax revenues.

Briefcase Departments

Tolosky Steps Down as Baystate President, CEO
SPRINGFIELD — Mark Tolosky has decided to end his tenure as president and CEO of Baystate Health effective July 1, 2014. Tolosky, who has served in that role since 2004, will be succeeded by Dr. Mark Keroack. “It is an extraordinarily difficult decision to give up the privilege of serving so many people in our community and touching so many lives,” said Tolosky, whose decision culminates a longstanding personal and professional plan to transition his leadership of Baystate. “But I’m confident that now is the right time to move on to my next phase, as my Baystate colleagues continue to lead the way in transforming healthcare toward greater quality, accessibility, and affordability.” The Baystate Health board of trustees has unanimously approved the appointment of Keroack, a native of Springfield, to assume the role of president and CEO of Baystate Health next year. As an interim step, on Jan. 1, 2014, Keroack will assume the additional title and authority of president and CEO of Baystate Medical Center.
“It is a great honor to be selected as the next leader of this wonderful organization,” said Keroack. “The new healthcare world will require an unprecedented level of connectedness between nurses, doctors, and allied health professionals; between specialty and primary care providers; between those who touch our patients and those who support them; between health plan and delivery system; and across all the communities and regions that we serve. I am excited to continue this great work, here in the town where I grew up, and across all of Western Mass., to achieve a higher state of caring for the people we serve.” 
Keroack’s father, Dr. Alvin Keroack, served the Sixteen Acres community of Springfield for many years as a general practitioner and occasionally brought his son, Mark, to what was then Springfield Hospital (now Baystate Medical Center) for rounds. Keroack’s mother, Mary Phaneuf Keroack, was a nurse and graduate of the Springfield Hospital School of Nursing, which became the Baystate School of Nursing. Tolosky joined Baystate in 1992 as executive vice president of Baystate Health and CEO of Baystate Medical Center. In 2004, he was promoted to president and CEO of Baystate Health. Under Tolosky, Baystate has been named one of the nation’s top 15 integrated health systems, and its hospitals, services, and employees have received multiple prestigious healthcare-quality honors. “Mark’s vision has been not only to transform the quality of our care, but our presence across the region as well,” said Victor Woolridge, chair of the board of trustees. “In the last 15 years, we have reinvested over $750 million into our communities and dramatically improved the facilities and services available to patients across Western Mass.” Baystate’s facility investments during Tolosky’s tenure include the $300 million expansion of Baystate Medical Center in 2012, comprising the MassMutual Wing, the Davis Family Heart & Vascular Center, the Harold Grinspoon and Diane Troderman Adult Emergency Department, and the Sadowsky Family Pediatric Emergency Department; recent renovations at Baystate Franklin Medical Center and Baystate Mary Lane Hospital; the construction of the Chestnut Surgery Center, the 3300 Main St. outpatient center, the D’Amour Center for Cancer Care, the Baystate Orthopedic Surgery Center, and the Baystate Children’s Specialty Center, all in Springfield, where a formerly underused stretch of Main Street in the North End is now a burgeoning ‘Medical Mile’; as well as many other upgrades in facilities and clinical capabilities across the Baystate Health system. After the July transition, Tolosky will assume the title of president emeritus and support his successor Keroack as needed. “I look forward to working closely with Dr. Keroack over the next six months to continue to advance relationships critical to the success of our organization and the health of our community, while transitioning the duties of CEO,” said Tolosky. Prior to joining Baystate Health, Keroack served on the faculty of the University of Massachusetts for 12 years. During that time, he was a busy practitioner focusing on HIV and AIDS care and won five annual teaching awards. He subsequently provided executive leadership at UMass Memorial Health Care in Worcester as vice president for Medical Management and later as the first executive director of the 700-physician UMass Memorial Medical Group. He then joined University Health System Consortium (UHC) in Chicago, where he served as senior vice president and chief medical officer. There, he oversaw programs for clinical and operational performance improvement, faculty group practice management, patient safety, and accreditation. Keroack graduated from Amherst College and Harvard Medical School, and received his MPH from Boston University. He trained in internal medicine and infectious diseases at Brigham and Women’s Hospital in Boston.

Construction Adds 17,000 Jobs in November
WASHINGTON, D.C. — Construction employers added 17,000 jobs in November as the sector’s employment hit the highest level since August 2009, and the industry unemployment rate fell to 8.6%, according to an analysis of new government data by Associated General Contractors of America. Association officials noted that the new employment figures come as construction spending levels hit a four-year high in October. “While these new employment figures are very encouraging, growth remains uneven by segment, region, and time period,” said Ken Simonson, the association’s chief economist. “There are likely to be continuing variations in growth between home building, private non-residential, and public sector.” Construction employment totaled 5,851,000 in November, an increase of 178,000 from a year earlier, Simonson noted. But while employment grew by 3.1% during the past year, construction employment remains nearly 1.9 million below the sector’s April 2006 peak. Meanwhile, the unemployment rate for workers actively looking for jobs and last employed in construction declined from 12.2% in November 2012 to 8.6% last month. Non-residential construction firms added 7,900 new jobs in November, while residential firms added 8,400 jobs. While every segment of the construction industry added jobs in November, heavy and civil engineering firms — which are most likely to perform federal construction work — added the least amount, only 200 jobs. Meanwhile, residential specialty trade contractors added the most new jobs during the past month, 7,100. The number of unemployed construction workers dropped from 988,000 in November 2012 to 706,000 in November 2013, a decline of 282,000.

Unemployment Rates Fall for Both Women, Men
WASHINGTON, D.C. — According to analysis by the Institute for Women’s Policy Research (IWPR), due to continued job growth in November, women hold more jobs on payrolls than ever before, while men have regained 75% (4.5 million) of the jobs they lost during the recession. Of the 2.3 million jobs added to payrolls in the last year, 51% were filled by women, and 49% were filled by men. Nonetheless, men held 1.6 million more jobs than women in November.
IWPR’s analysis of the December employment report from the U.S. Bureau of Labor Statistics (BLS) finds that, of the 203,000 total jobs added in November, women gained 94,000 of those jobs (46%), while men gained 109,000 jobs (54%). Women’s employment growth was strongest in education and health services (39,000 jobs gained by women), professional and business services (17,000 jobs), and retail trade (15,600 jobs). If the number of jobs had grown as fast as the working-age population since the start of the recession, women would hold 3.8 million more jobs in November 2013, and men would hold an additional 5.4 million.
“While unemployment is dropping and men are steadily regaining the jobs they lost during the recession,” said IWPR Study Director Jeffrey Hayes, “employment growth for both men and women hasn’t caught up with population growth. We still need to focus on creating jobs — especially jobs that pay well and provide benefits.”
According to the household survey data reported by the BLS, the unemployment rate decreased to 6.7% in November for women and 7.3% for men. Among single mothers, however, the unemployment rate increased slightly to 9.7%.
The November data builds on IWPR’s analysis of trends that emerged in the first four years of the recovery, notably the relative growth in industries — such as education and health services — with high concentrations of women workers, and the contraction in government jobs and their effects on job growth for both men and women. The Institute for Women’s Policy Research conducts research and disseminates its findings to address the needs of women and their families, promote public dialogue, and strengthen communities and societies.

MGM Resorts Found Suitable for Casino License
BOSTON — Investigators for the Massachusetts Gaming Commission recently recommended that MGM Resorts International be found suitable to apply for a casino license, subject to certain conditions. MGM is planning an $800 million casino project in Springfield’s South End. Among the conditions investigators posed, MGM must satisfy the commission that its business practices in Macau meet a legal standard of “responsible business practices” in any jurisdiction, and must also satisfy the commission regarding Terry Christensen, a former member of the MGM board who resigned after a federal indictment for wiretapping and conspiracy. MGM is the sole remaining applicant for a casino license in Western Mass. after voters in West Springfield and Palmer rejected casino proposals earlier this year. Springfield voters approved a casino by a 58-42 margin. At press time, the five-member Gaming Commission was expected to vote on whether MGM is suitable to apply for a casino license in Springfield. MGM owns 99% of the Springfield project, and local hotel owner Paul Picknelly owns 1%, investigators reported.

Briefcase Departments

State’s Jobless Rate Remains Above 7%
BOSTON — The state’s unemployment rate remained above 7% for the fourth consecutive month in October as the Commonwealth’s expansion continued what has been a slow advance. The jobless rate rose to 7.2% in October, compared with 7.1% in September and 7.2% in August, according to the state Executive Office of Labor and Workforce Development. The U.S. unemployment rate was 7.3% for October. Massachusetts added 9,100 jobs in October after increasing payrolls by 9,400 positions in September, the state reported. However, those gains were not enough to put a dent in unemployment, analysts said. The automatic federal budget cuts known as sequestration, which went into effect earlier this year, have disproportionately hurt Massachusetts, due to its high concentration of industries that rely on such funding, such as defense, healthcare, and scientific research, experts noted. The leisure and hospitality sector, which includes hotels and restaurants, led October’s job gains, adding 3,200 positions. Trade, transportation, and utilities gained 2,500 jobs, and the education and health services sector added 1,900 jobs. Construction jobs have grown steadily, adding 1,300 jobs in the month and 6,300 over the past year, a 5.5% increase. The financial activities sector added 600 jobs in October, and the professional, scientific, and business services sector gained only 600 jobs. Manufacturing lost 1,400 jobs over the month, and government employers cut 200 jobs.

Senate Backs Minimum-wage Hike; House Considering Vote
BOSTON — The state Senate voted overwhelmingly late last month to raise the state’s minimum wage from $8 per hour to $11 per hour over three years, putting the Commonwealth on track for the highest such pay in the nation. The Senate voted 32-7 to approve the increase. The measure calls for $1 increases on July 1 in the next three years. House leaders are balking at the proposal, however, warning that it would be a mistake unless the state also cuts costs for businesses by overhauling the state’s unemployment-insurance system. “Right now, the whole proposal, as far as we’re concerned, is in flux,” Speaker Joe DeLeo told the Boston Globe, adding that he expects a vote in the House will wait until at least January.

Governor Pledges $200m for I-91 Viaduct Work
SPRINGFIELD — Gov. Deval Patrick announced $200 million late last month to replace a section of the I-91 viaduct in downtown Springfield, but told the audience at an Affiliated Chambers of Commerce of Greater Springfield luncheon that the 2½-year project is only one step toward taking that section of the highway to grade level — or below. “It’s a great opportunity for the city and region to restore the connection of the downtown and riverfront,” Patrick told those assembled. The city’s mayor, Domenic Sarno, said the project could have a potentially huge impact on the city, and said he’s asked the state to think big. “Stay tuned,” he told the audience. “I want something bold and visionary.”

Millford Voters Latest to Say ‘No’ to a Casino
MILFORD — Voters in Milford became the latest in the state to turn thumbs down to a casino plan late last month, rejecting a $1 billion proposal involving Foxwoods by a nearly 2-1 margin. The agreement, which would have allowed the casino giant access to a resort on 187 acres off Interstate 495, was defeated by a vote of 65% to 35%. Voters in Milford thus joined those in West Springfield, Palmer, East Boston, and other cities and towns that have rejected casinos in their communities.

Tower Square Chosen for UMass Satellite Facility
SPRINGFIELD — UMass Amherst officials have chosen Tower Square in downtown Springfield as the site of what’s being called a “satellite center,” which is due to be open for the start of the fall semester in 2014. The facility will be known as “UMass Springfield.” At an elaborate press conference staged in the Tower Square concourse, university, state, and city officials announced that the MassMutual-owned facility had prevailed in a months-long competition to host the satellite facility. The other locations to submit bids were Harrison Place, 1350 Main St. (One Financial Plaza), and the Peter Pan bus terminal. The center will include academic programs to be offered by the UMass campuses in conjunction with UMass Online and UMass Amherst’s Springfield programs.

WSU Trustees Name Interim President
WESTFIELD — Westfield State University trustees have named Elizabeth Preston, vice president of Student Affairs, as the school’s interim president, following the resignation early last month of embattled president Evan Dobelle.  Preston will serve until a permanent president is selected, a process that university board of trustees chairman John Flynn expects will take at least until the end of the school year to complete.

Mohegan Sun, Suffolk Downs to Team Up for Revere Casino Bid
BOSTON — Connecticut casino giant Mohegan Sun has agreed to join a Suffolk Downs casino bid in Revere, giving both parties in that entity a second chance to win big in the competition for coveted casino licenses. Mohegan Sun had spent the past five years trying to win the rights to build a casino off the Mass. Turnpike exit in Palmer, but voters there rejected a host-community agreement at a Nov. 5 referendum vote. Meanwhile, Suffolk Downs saw voters in East Boston reject plans to build a casino on track-owned land in that community. Track officials later reworked their plans — placing the casino entirely on land in neighboring Revere, which approved a casino referendum — and commenced a search for a new partner after Caesars Entertainment was asked to bow out amid questions and concerns posed by the Mass. Gaming Commission.

Briefcase Departments

Palmer Casino Falls in Close, Stunning Vote
PALMER — In a stunning defeat for Mohegan Sun, Palmer residents narrowly voted down a proposal to build a resort casino on property alongside the Mass Pike. Mohegan Sun has called for a recount after the proposal failed by 93 votes, 2,657 to 2,564. In an enthusiastic turnout, 62% of Palmer’s 8,412 registered voters cast ballots on Nov. 5. Mohegan Sun, which has maintained a storefront office and a high-profile presence in town for four years, is basing its recount demand on a voting machine in Precinct 2 that malfunctioned during the afternoon.
The company wanted to build a nearly $1 billion resort casino on 152 acres owned by Northeast Realty off turnpike exit 8. The host community agreement with the town, negotiated by Town Manager Charles Blanchard, pledged $20 million in revenue in the first year, and guaranteed payments of $15.2 million each year thereafter. The defeat — coupled with West Springfield voters recently rejecting a proposal by Hard Rock International to build a casino on Eastern States Exposition property — leaves Western Mass. with only one casino proposal that has been approved by residents. In July, by a 58-42 margin, Springfield voters said yes to that city’s host-community agreement with MGM Resorts International to develop a casino in the city’s South End. The Massachusetts Gaming Commission will award one casino license in Western Mass. next spring, though it is unclear whether Springfield is a lock for that license. Meanwhile, in separate nonb-binding resolutions, voters in West Springfield and Longmeadow overwhelmingly opposed a Springfield-based casino. In other Election Day results, state Rep. Donald Humason defeated Holyoke City Councilor David Bartley to represent the 2nd Hampden-Hampshire District seat in the state Senate. Meanwhile, Holyoke Mayor Alex Morse defeated challenger Jeffrey Stanek, while Daniel Knapik narrowly kept his mayoral post in Westfield, beating back a challenge from Michael Roeder. However, Chicopee Mayor Michael Bissonnette fell to challenger and former mayor Richard Kos, and Ed Sullivan defeated incumbent West Springfield Mayor Greg Neffinger. Karen Cadieux won the open mayor’s seat in Easthampton.

Hampden Bank Tackles Proxy Fight
SPRINGFIELD — Last week, at its annual meeting of stockholders, Hampden Bank beat back a proxy fight from shareholders based in Texas who wanted seats on the board of directors, as Thomas Burton, Arlene Putnam, Linda Silva Thompson, and Richard Suski were elected directors for three-year terms expiring in 2016. Texas-based Clover Partners, headed by Johnny Guerry — which owns about $7.8 million in Hampden Bancorp Inc. stock, or 459,660 shares, accounting for about 8.1% of the company — had demanded a presence on the board and has been pushing Hampden Bank to explore a sale or merger with another bank to increase earnings. “We sincerely appreciate the support of our stockholders during the recent contested election,” said Glenn Welch, the bank’s president and CEO. “We look forward to returning our full attention to growing our business and increasing stockholder value.” Stockholders voted down a non-binding shareholder proposal, supported by Clover Partners, requesting that the board of directors explore avenues to enhance shareholder value through avenues such as a sale or merger. Stockholders also ratified Wolf & Company, P.C. to serve as the company’s independent registered public accounting firm for the fiscal year ending June 30, 2014, and also approved an advisory proposal on executive compensation, which is referred to as the ‘say-on-pay’ vote. Welch countered Guerry’s concerns about profitability by noting that net income rose $1.2 million, or 22 cents a share, for the first quarter of fiscal 2014, the largest increase in net income since the bank went public six years ago and a 57% increase from the year before. At the same time, the bank’s loan portfolio stood at $482.1 million at the end of the first quarter of fiscal 2014, up 6.8% compared with the same quarter in 2012. The bank’s stock price has outperformed both the NASDAQ Bank Index and the SML U.S. Bank Index over the past five years. Welch also said that a recent restructuring, which eliminated some jobs, will save the bank $1 million a year.

Effort Aims to Modernize, Preserve Public Housing
BOSTON — In a continuation of Gov. Deval Patrick’s efforts to preserve the Commonwealth’s public-housing portfolio and increase the number of affordable public-housing units available, the Department of Housing and Community Development (DHCD) has announced a new initiative, the High Leverage Asset Preservation Program (HILAPP), aimed at supporting the comprehensive modernization and preservation of the state’s public housing stock. The program will support these efforts by providing grants to local housing authorities that are able to secure matching funds from local and non-DHCD sources. “Affordable public housing is in high demand across the state,” said Housing and Community Development Undersecretary Aaron Gornstein. “These funds will not only ensure that current residents live in healthy and safe environments, but that the developments are upgraded so they will last for years to come.” The DHCD also awarded nine housing authorities across the Commonwealth — Amherst, Braintree, Chicopee, Franklin County, Lexington, Malden, Middleborough, Provincetown, and Sandwich — more than $500,000 to begin the design phases of their projects. By the conclusion of this first competitive cycle, it will invest up to $5 million in capital dollars to support these local housing authorities. Between fiscal years 2014 and 2018, the DHCD intends to distribute $75 million for HILAPP projects, which will in turn leverage millions of dollars from outside sources. The DHCD will repeat the competitive award process annually, funding permitting, in order to build and maintain a consistent pipeline of HILAPP projects. Other Patrick administration reforms have included requiring local housing authorities to provide the DHCD with the salaries of their five highest-paid management staff and setting a maximum salary for local housing authority executive directors, and requiring greater reporting of financial information.

Government Shutdown Slows Business Confidence
BOSTON — The Associated Industries of Massachusetts Business Confidence Index lost 4.8 points in October to 46.7 as Massachusetts employers reacted to deadlock in Washington and the resulting federal government shutdown. “The great majority of survey responses came in during the shutdown, and as a debt ceiling crisis loomed,” said Raymond Torto, chairman at CB Richard Ellis Group Inc. and chair of AIM’s Board of Economic Advisors (BEA). “While the threat of a shutdown had little apparent effect on the September results, the reality in October had a big impact.” Torto pointed to responses to a special question on the business-confidence survey asking employers how the fiscal crisis would affect business conditions. “While only 13% had seen, or expected, direct impact on their operations, another 64% believed there were negative effects on overall business confidence and the  economy,” he noted. “On the other side of the ledger, 13% responded that they had not seen and did not expect negative effects, and 10% replied that ‘budget cuts and hard-line positions are ultimately positive.’ The employer community rejects the way business is being conducted in Washington, and this was consistent across industries and the range of company sizes.” The AIM index has appeared monthly since July 1991. It is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

Massachusetts, U.S. Show Economic Growth
BOSTON — The state and national economies grew faster than expected over the summer, due to an improving housing market and wage and salary growth, according to a report by the University of Massachusetts and the Federal Reserve Bank of Boston. The state economy grew at a 3.5% annual rate from July through September, according to the report. The national economy expanded at 2.8% rate during the same period, the U.S. Commerce Department reported. However, eonomists expect economic growth to slow next quarter as a result of the 16-day partial shutdown of the federal government last month. Employment and unemployment are among several indicators the local economists use to estimate the state’s quarterly economic growth. Other factors include state sales tax collections, a gauge of consumer spending; payroll withholding taxes, a measure of wage and income growth; consumer confidence; and the stock performance of Massachusetts companies. “The improvement in the third quarter is due to slow-but-better job growth, rising wage and salary incomes, and a higher rate of spending on items subject to sales taxes,” the report notes. “A recovering housing market and consumer and business spending are driving up economic growth.” Those improvements helped offset the economic drag from automatic budget cuts known as sequestration and higher federal payroll taxes that went into effect earlier this year. The report, published in the UMass economics journal MassBenchmarks, also revised the state’s rate of economic growth between April and June, to a 1.7% annual rate, up from previous estimate of less than 1%.

Patrick Administration Touts Conservation Efforts
WEST STOCKBRIDGE — The Mass. Department of Fish and Game (DFG) and its Division of Fisheries and Wildlife (MassWildlife) recently joined state officials and conservationists at the Maple Hill Wildlife Management Area to celebrate the protection of over 200,000 acres of Massachusetts land after the agency acquired 3,525 acres of conservation land during fiscal year 2013. The agency now manages 200,442 acres statewide. “Gov. Patrick’s historic commitment to open-space protection has resulted in approximately 40,000 of these acres conserved since 2007,” said Energy and Environmental Affairs (EEA) Secretary Rick Sullivan. “I thank DFG and the many conservation organizations and individuals who contributed to this achievement.” Added DFG Commissioner Mary Griffin, “land conservation depends on partnerships with conservation organizations, land trusts, sportsmen, and conservation-minded landowners, and financial support from these groups and the state and federal government. We are grateful to 75 partners that have worked with us during the Patrick administration, and appreciate the support of all people in Massachusetts who contributed to the milestone achievement of 200,000 acres protected.” The DFG and MassWildlife jointly administer the agency’s land-protection program. Under Patrick’s tenure, the agency has invested more than $64 million for land acquisition and conserved almost 40,000 acres. The DFG has acquired conservation properties throughout the state in reaching the 200,000-acre milestone. Highlights from recent years include the Paul C. Jones Working Forest, 3,486 acres in Leverett and Shutesbury; the Flagg Mountain Wildlife Management Area, 160 acres in Conway; the West Brookfield Wildlife Management Area, 320 acres in West Brookfield; the Squannacook River Wildlife Management Area, 39 acres in Townsend; and the Halfway Pond Wildlife Management Area, 152 acres in Plymouth.

Briefcase Departments

State Moves Forward with Interstate 91 Study
SPRINGFIELD — State officials have chosen a consultant to study possible alternative alignments for Interstate 91 through Springfield, while highway officials proceed with a plan to replace decks on a deteriorating elevated portion of the highway in the city. The state Department of Transportation has selected the Cheshire, Conn.-based consulting firm Milone & MacBroom to evaluate alternatives for a section of Interstate 91, including possibly depressing the highway section to ground level or below ground. At the same time, the state highway division will be moving forward with a plan to replace decks on the crumbling Interstate 91 viaduct. Milone & MacBroom will study a section of Interstate 91 south of the most elevated portion of the viaduct near the Naismith Memorial Basketball Hall of Fame. At the same time, the state highway division will develop a plan for replacing the decks of the existing Interstate 91 viaduct, which raised safety concerns after a chunk of concrete fell from the section in April. The activity comes amid plans by MGM Resorts International to build $800 million casino in the South End of Springfield that would front Interstate 91 and would draw most of its traffic from the highway. MGM is competing with Mohegan Sun Massachusetts in Palmer for the single casino license to be awarded in Western Mass. The state is starting contract negotiations with Milone & MacBroom with a goal of starting work in January. The firm will coordinate with the state highway division as it moves forward with its proposal to replace the decks on the viaduct.

U.S. Manufacturing Gains 2,000 Jobs in September
WASHINGTON, D.C. — The latest monthly U.S. jobs report shows America’s manufacturing sector gained 2,000 jobs in September. However, for all of 2013, the U.S. has gained only 12,000 manufacturing jobs. Commented Scott Paul, President of the Alliance for American Manufacturing (AAM), “in manufacturing, we’ve been treading water for nearly 18 months now. Yet no one in Washington seems to care. The September jobs report shows that private-sector job growth, and manufacturing in particular, is too weak to put the U.S. on a sound fiscal footing or to get the middle class back on track. It’s time for Congress to stop manufacturing crises and deal with our real manufacturing crisis. Washington needs to put into place policies that will get America back to work. The neglect is glaring: 70,000 structurally deficient bridges. Math and science achievement down compared to other industrialized nations. And our economic competitors are not standing still. This is no way to run a country or to support the private sector’s efforts to create jobs. And here’s the kicker: the October numbers could be even worse.” President Obama set a goal of creating 1 million new manufacturing jobs in his second term. To follow the president’s progress, the AAM continually updates a jobs tracker based on monthly jobs data from the Bureau of Labor Statistics (BLS).

Student Debt Load Rising in Bay State
BOSTON — More students in Massachusetts public universities and colleges are incurring larger amounts of debt to finance their educations, the state higher education commissioner told lawmakers recently. “Let me sound the alarm on this issue,” Commissioner Richard Freeland said at the fourth in a series of hearings on college debt. “Make no mistake: the burden of student debt could derail us from achieving our goals.” The average debt for graduates of the University of Massachusetts system, other state universities, and community colleges increased 27% from fiscal 2008 through fiscal 2011, the last year for which data are available, Freeland said. And the percentage of graduates who accumulated debt rose across all levels, including a high of 64.8% at the state universities in 2011. The average graduate in the UMass system left with $26,844 in debt in 2011, an increase of $5,525 over three years earlier. At other state universities, the average figure was $22,362, a jump of $4,822. For graduates of community colleges, the average debt in 2011 ranged from $7,229 for graduates with associate degrees to $4,655 for graduates with one-year certificates or less. The percentage of graduates who left the UMass system in debt rose to 61.4% in 2011 from 57.9% in 2008. The biggest increase in public institutions, from 31.1% to 48.6%, was registered by community-college graduates with one- or two-year certificates.

Savage Arms, Cirtec Medical Win Grants
WESTFIELD, EAST LONGMEADOW — Firearms manufacturer Savage Arms in Westfield and Cirtec Medical in East Longmeadow, a maker of medical devices, have been awarded grants from the state’s Workforce Training Fund to expand their workforces and train employees in lean-manufacturing processes. Savage Arms was awarded $179,600, which will be used to train 400 employees, and 48 new jobs are expected to be created. Cirtec Medical was awarded $106,805, which will be used to train 63 employees, and three new jobs are expected to be created as a result of training. Lean manufacturing emphasizes on avoiding waste and improving quality, and is based on the Toyota manufacturing methods. The two awards are part of a package of 37 grants totaling $2.8 million. All told, the grants fund 3,106 current and newly hired employees. Savage Arms represents one-third of the total market for traditional firearms, with a particular focus on bolt-action rifles. Cirtec Medical is a contract design, development, and manufacturing firm focusing on medical devices, with a particular strength in active and passive implantable devices and minimally invasive systems.

State Increases Incentives for Hiring Veterans, Long-term Unemployed
BOSTON — The Executive Office of Labor and Workforce Development announced that it has more than doubled cash grants available to employers hiring Massachusetts residents who have been unemployed for six months or more, or Massachusetts veterans (regardless of length of unemployment). Increased grant funding is available through the state’s Hiring Incentive Training Grant (HITG), a program of the Massachusetts Workforce Training Fund. Any for-profit company or nonprofit organization that contributes to the Massachusetts Workforce Training Fund, a state fund enacted in 1998, is encouraged to apply. Eligible employers may now apply for grants of $5,000 for each new hire who meets the HITG program requirements. Employers may receive up to $75,000 each calendar year. Upon approval, payment will be available to the employer once the new hire has retained employment for at least 120 days. A copy of the Hiring Incentive Training Grant application, eligibility requirements, frequently asked questions, and other relevant materials are available at EOLWD’s website, www.mass.gov/hiringgrant. Grant awards are subject to funding availability, and applications are reviewed on a rolling basis.

Retailers Cautious About Seasonal Hiring Boosts
WASHINGTON — Facing economic wariness and wavering consumer confidence, retailers are approaching their holiday hiring with caution, forecasters say. Research firm Challenger, Gray & Christmas said it expects hiring will, at best, match the 752,000 retail jobs that were added last year between October and December, and the National Retail Federation projects retailers will add between 720,000 and 780,000 seasonal workers this year. Retailers are making their staffing decisions against a backdrop of uncertainty caused by tepid economic growth and, more recently, standoffs in Congress over funding the federal government and the debt limit. Toys R Us plans to hire 45,000 workers, about the same as it hired last year. Kohl’s is poised to hire 50,000 workers, also consistent with its 2012 hiring. Macy’s is set to add 83,000 seasonal workers, a slight increase from the 80,000 brought on the previous year. Wal-Mart says it will hire 55,000 holiday workers, a 10% increase from 2012. It will also transition an additional 35,000 temporary workers to part-time positions and yet another 35,000 part-time workers to full-time positions. Meanwhile, Target plans to pare back its seasonal staffing, expecting to add 70,000 workers in 2013 compared with 88,000 last year. The company said it will focus on giving existing staffers the chance to work extra hours. Foot traffic to bricks-and-mortar stores is taking a hit as more consumers buy online. That growth is reflected in Amazon.com’s hiring plans; the online giant expects to create 70,000 seasonal positions, a 40% increase from last year. While holiday retail hiring is expected to be somewhat flat, sales are expected to inch up. The National Retail Federation forecasts a 3.9% increase to $602.1 billion, an improvement over last year’s sales growth of 3.5% over 2011.

WSU President Files Suit Against Several Parties
WESTFIELD — Evan Dobelle, the embattled president of Westfield State University who was placed on paid leave of absence last month amid investigations of alleged improper spending and violations of university policies regarding travel and credit, has filed suit in U.S. District Court in Springfield against a number of parties directly or indirectly related to the action taken against him. Dobelle, who is suing the university, Higher Education Commissioner Richard Freeland, three trustees, the school’s accounting firm, a Boston law firm, and the university’s lawyers, is seeking an unspecified amount of money and legal fees. He claims that Freeland and the trustees are waging a “guerilla war for control of the university,” and that Freeland used extortion-like tactics in an attempt to force Dobelle from office. The suit also alleges that trustees Chairman John Flynn III conducted a “one-man investigation” into Dobelle’s travel between 2008 and 2013. Also named in the suit are trustees Kevin Queenin and Elizabeth Scheibel, the former Northwestern district attorney; the Braintree-based accounting firm O’Connell and Drew; Rudin and Rudman, a Boston law firm; and James Cox, lawyer for the Board of Trustees. The trustees voted on Oct. 15 to suspend Dobelle, following a 10-hou, closed-door meeting the president. The board also hired a Boston-based law firm to investigate Dobelle’s travel and spending, and report back by Nov. 25.

Briefcase Departments

Westfield State Trustees Place Dobelle on Leave
WESTFIELD — Westfield State University trustees voted unanimously last week to place President Evan Dobelle on administrative leave with pay. Trustee chairman Jack Flynn said Dobelle would remain on paid leave until at least Nov. 25, when the law firm Fish & Richardson is expected to complete an investigation into Dobelle’s lavish spending habits. Thomas Frongillo, a principal in the firm, has been representing the trustees in their negotiations with Dobelle. While Dobelle, who spent hours with trustees at their closed-door session, left without comment, his publicist, George Regan, said Dobelle plans to file a federal lawsuit against the trustees for the “egregious” violation of his rights. “We are disappointed that the board has acted unlawfully and has obviously buckled to the intense political pressure surrounding this issue,” said Regan in a statement. “The board has defamed President Dobelle and allowed him to be defamed, and there will be major consequences to these actions.” The vote to place Dobelle on leave came following a vote of no confidence by faculty and librarians at WSU. Specifically, 64% of the 215 faculty and librarians who voted agreed with the statement that “I have no confidence that Dr. Evan Dobelle can continue to effectively serve as president of Westfield State University,” according to the executive committee of the Mass. State College Assoc. The trustees’ action also comes in the shadow of a fresh investigation by Attorney General Martha Coakley’s office into whether Dobelle made illegal false claims to obtain reimbursement for his expenses. The trustees called the special meeting in the face of mounting pressure to take action after an August report by accounting firm O’Connor & Drew found that Dobelle had repeatedly violated university policy by charging personal expenses to university credit cards, and also questioned the documentation for many claimed expenses. Since then, state Inspector General Glenn Cunha has raised questions about Dobelle’s extensive business travel, luxury hotel stays, high-end restaurant meals, and entertainment charged to the school. Meanwhile, state Higher Education Commissioner Richard Freeland has frozen some state funding to WSU because he’s concerned about Dobelle’s ability to manage money. “It seems to me highly questionable whether President Dobelle can or should continue to provide leadership to Westfield State University,” Freeland wrote to the trustees.

Springfield City Council Boosts Mayor’s Salary
SPRINGFIELD — The Springfield City Council recently gave first-step approval to a $40,000 pay raise for the mayor, which, if granted final approval at the Oct. 21 council meeting, will increase the mayor’s annual salary from $95,000 to $135,000 effective in January 2014. Mayor Domenic Sarno has two years left on his four-year term. Supporters of the raise noted that the current salary has not increased in 17 years and is low when compared with other cities. The increase was proposed in May by the Springfield Chamber of Commerce, which cited the need to attract the best candidates and pay a wage that reflects the responsibilities of the job and the size of the city. The council voted to grant first-step approval for increasing councilors’ own annual salary from $14,500 to $19,500, a change that will also will take effect in January, if granted final approval. The council has not had a raise in 18 years.

Mama Iguana’s Closes at Springfield Site
SPRINGFIELD — Mama Iguana’s owner Claudio Guerra closed down that restaurant’s Springfield location, neighboring the Naismith Memorial Basketball Hall of Fame, earlier this month after just over two years in operation.
The restaurant opened in June 2011 in the location of the former Onyx Fusion Bar and Restaurant. Onyx had closed in April 2011 after three years operating in space once occupied by the Hall of Fame. Guerra’s latest venture boasted 350 seats indoors and 150 on an outdoor patio.
Mama Iguana’s had 50 employees, and Guerra said he will try to absorb as many of them as possible at his four other eateries — the Spoleto restaurants in Northampton and East Longmeadow and Mama Iguana’s and Pizza Paradiso in Northampton. Gift cards are redeemable at those other locations. Guerra told the Republican that the concept behind his Springfield restaurant, and his execution of that concept, led to the closing, not a general reluctance to dine out in the city. He added that the right restaurant with the right concept would succeed there.
Competition tightened at the site when Plan B Burger Bar opened in September 2012 in the Hall of Fame building. Guerra said he’d been trying to sell the restaurant or bring in a partner to help run it, but any possible partner or buyer balked at investing money on a new concept with the possibility of MGM Resorts International opening a South End casino.

Nov. 21 Deadline Set for Marijuana Licenses
BOSTON — The state Department of Public Health has set a Nov. 21 deadline for nonprofit companies to submit final applications for medical-marijuana shops and cultivation facilities (see story on page 6). The DPH will announce an award of licenses on Jan. 31, despite the fact that more than 130 communities have instituted temporary moratoriums on medical-marijuana dispensaries.
Last month, the DPH approved 158 preliminary applications for medical marijuana, clearing the applicants to continue to a second and final phase of bidding. Of those, 22 companies are proposing to set up shop in one of the four counties of Western Mass. Each county in Massachusetts will be granted at least one and no more than five dispensaries, with the statewide total capped at 35.
A selection committee will evaluate final applications on factors including ability to meet the health needs of registered patients, site appropriateness, geographic distribution of dispensaries, local support, and public-safety plans.

Briefcase Departments

Baystate, UMass Memorial Sign Agreement to Explore Partnerships
SPRINGFIELD and WORCESTER — Baystate Health and UMass Memorial Health Care have signed a non-binding letter of intent to explore new collaborative opportunities between the two not-for-profit health systems. As national healthcare reform has brought an urgent imperative to transform the delivery and financing of healthcare, health systems and hospitals across the country are collaborating in innovative ways, finding new efficiencies and better care solutions by sharing clinical experience and intellectual resources. Baystate Health and UMass Memorial Health Care have much in common. Each has a mission of improving the quality, accessibility, and affordability of healthcare for patients and families in its community. The two organizations share many other characteristics: both serve communities with significant health needs and significant socioeconomic challenges underlying those needs. Both organizations have integrated systems of care including medical practices, community hospitals, and a major academic medical center. Both organizations receive national recognition not only for the quality of the care they provide, but also for their commitment to their communities. The new agreement builds on a long-existing relationship, as Baystate Health and UMass Memorial Health Care have a long history of mutual support on a number of efforts, including collaborations in pharmacy; healthcare quality, clinical practice, and policy; and infusion medicine. Each recognizes that they can learn even more from one another, work together more closely, and in doing so be more effective and efficient in keeping area communities healthy, rather than focusing mainly on treating disease or illness. Neither organization’s ownership, structure, governance, academic relationships and affiliations, or medical staffs will be affected by the letter of intent or any potential strategic collaboration, nor will they limit the ability of either party to pursue other strategic opportunities.

Leadership Pioneer Valley Announces Class of 2014
HOLYOKE — Leadership Pioneer Valley (LPV) officially kicked off the class of 39 emerging and established regional leaders at its recent Reach Beyond Opening Reception at Wistariahurst. The culturally and geographically diverse class of men and women from nonprofit, private, educational, and public organizations from Hampden, Hampshire, and Franklin counties filled the reception with energy, enthusiasm, and commitment to the future of the Pioneer Valley. Leadership Pioneer Valley is addressing the critical need to build a diverse network of leaders who aspire to work together across traditional barriers to strengthen the region. The members of the new class will take part in a 10-month program of experiential learning that will take place at locations across the Valley. The experiential curriculum is specifically designed to help the participants refine their leadership skills, broaden connections, and develop a greater commitment to community trusteeship and cultural competency. The class of 2014 includes: Sherill Acevedo, Baystate Medical Practices; Jasmine Amegan, Westfield State University; Kerri Bohonowicz, Community Health Center of Franklin County; Amy Britt, Tapestry Health; Ronda Carter, Health New England; Christina Casiello, MassMutual; Jenny Catuogno, Gadreau Insurance; Tammy-Lynn Chace, Amherst Area Chamber of Commerce; Eliza Crescintini, Children’s Study Home;

Geoffrey Croteau, MassMutual Charter Oak Insurance & Financial Services; Cheryl Dukes, Town of Buckland; Nasheika Durham, YMCA of Greater Springfield; Andrew Fletcher, Holyoke Community College;

Kelsey Flynn, MassMutual; Valerie Francis, Health New England; Meghan Godorov, Mount Holyoke College;

Cynthia Gonzalez, Greenfield Cooperative Bank;

Richard Griffin, City of Springfield; Rachel Jones, Springfield Technical Community College; Kevin Jourdain, Sisters of Providence Health System; Diane LeBeau, Westfield State University; Yamilette Madho, Big Y Foods Inc.; Matthew Kullberg, WGBY;
Rosemarie Marks-Paige, Health New England; L.A. McCrae, Three Sisters Consulting; Monique Meadows, self-employed; Josiah Neiderbach, Pioneer Valley Planning Commission; Lizzy Ortiz, City of Springfield Office of Housing; Beena Pandit, MassMutual; Laura Porter, Holyoke Health Center; Lee Pouliot, City of Chicopee; Jennifer Sanchez, Springfield Technical Community College; Isabel Serrazina, Springfield Housing Authority;

Nicole Skelly, United Bank;

Kyle Sullivan, John Glover Insurance; Colin Tansey, Specialty Bolt & Screw; Todd Weir, First Churches of Northampton; Christopher Whelan, Florence Savings Bank; and Jonencia Wood, Baystate Health.

Grant Helps Jobs Program Expand Opportunities
SPRINGFIELD — U.S. Sens. Elizabeth Warren and Ed Markey recently announced that the state Executive Office of Labor and Workforce Development has landed $11.67 million from the U.S. Department of Labor to boost employment opportunities and reduce recidivism for young men leaving the state’s juvenile justice system. The grant, awarded to the Massachusetts-based Roca program, aims to provide education and pre-vocational training to young people in the justice system to make them more employable and keep them from returning, as 67.5% do within six years of being released from custody. Warren and Markey said in a statement that the grant will aid the 535 young men between the ages of 16 and 22 in Springfield and Chelsea working on exiting the juvenile justice system by way of Roca. The program began in Eastern Mass. in 1988 and was brought to Springfield in 2010 thanks to a push by longtime Hampden County Sheriff Michael Ashe. As of July, the Springfield division of Roca had 85 participants, all high-school dropouts, whose past troubles with the law make it difficult if not impossible to get work. Program administrators say it costs $24,500 a year to put a young person through the Roca program, which includes their pay, although most payroll is paid directly by a participant’s employer. In contrast, it can cost more than $50,000 annually to imprison a person. “This grant is exciting news for Massachusetts. It will help strengthen the Commonwealth’s juvenile justice system by helping young men at risk for reincarceration build the skills they need to succeed,” Warren said in a statement. “This program is a great example of how the federal government can use innovative public-private partnerships to support critical social services in our communities.” Added Markey, “these funds will help keep young men and women in the workforce, out of detention facilities, and on a path towards success. If we can cut costs to society as we help form better members of society, that is an effort worth all of our support.”

Patrick Administration Announces 56 Grants for Massachusetts Farms
EAST TAUNTON — Energy and Environmental Affairs (EEA) Secretary Rick Sullivan recently awarded 56 grants to Massachusetts farmers to implement renewable-energy systems, improve energy efficiency on farms, and help farmers reduce or prevent negative impacts to natural resources from agricultural practices. “We are proud to support our local farmers in their efforts to ensure a sustainable future for their farms,” Sullivan said. “With each grant, we are creating opportunity for agriculture to stay rooted and grow in our communities. The Patrick administration is committed to reducing energy costs and improve efficiency, and we’re thankful to the Commonwealth’s farmers who are partnering with us in our progress toward a clean energy future.” Twenty-three grants from the Massachusetts Department of Agricultural Resources’ (DAR) Agricultural Energy Grant Program will fund projects to reduce energy consumption and increase renewable energy use at Massachusetts farms. The projects include photovoltaic systems for vegetable and orchard operations, variable-speed vacuum pumps for dairies, reverse-osmosis machines for maple-syrup operations, and shade screens for greenhouses. Thirty-three grants from DAR’s Agricultural Environmental Enhancement Program will fund projects like automated irrigations systems for cranberry operations, milkhouse wastewater treatment, manure storage areas, fencing, and pesticide storage. “These grant programs help farmers protect the state’s natural resources as well as our strong tradition of local agriculture,” said DAR Commissioner Greg Watson. “Implementing environmentally responsible and energy-efficient practices are imperative for farms across to the Commonwealth to remain family-owned resources for fresh, healthy, and delicious food.” Added Mark Silvia, Department of Energy Resources commissioner, “to achieve the Patrick administration’s ambitious goals for Massachusetts’ energy future, we must support clean-energy practices and reduced energy consumption in every sector of the Commonwealth. These grants will help Massachusetts farmers conserve energy and help their bottom line.” State Sen. Marc Pacheco, Senate chairman of the Committee on Environment, Natural Resources, and Agriculture, said he is “pleased to see the Commonwealth invest in projects that are positive for the local agricultural community and for our energy-efficiency efforts overall. These grants are a testament to the leadership that has earned Massachusetts its distinction as number-one in the country for energy efficiency.” Added state Rep. Anne Gobi, the committee’s House chair, “These grants are important to the viability of farming and agriculture in our Commonwealth and are just one more example of the continued commitment to Massachusetts farmers.”

Community Colleges Win Grant Funding
BOSTON — Springfield Technical Community College has received a $122,099 state grant to develop strategies for improving the academic performance of Hispanic students, while community colleges in Greenfield, Holyoke, and Pittsfield will share in a $239,334 grant to improve learning in science, technology and math. The money for the two-year Springfield college was among $7.5 million in competitive grants awarded by the state Department of Higher Education to encourage innovation and improve graduation rates and other aspects of student performance at the state’s 29 community colleges and universities. The $122,099 grant, which will be spread over three years, will allow for the hiring of a project coordinator and a part-time English- and Spanish-speaking academic adviser. The grant program calls for creation of focus groups as part of an in-depth study of Latino students to identify how current initiatives can be revised or new ones put into effect to ensure Latino academic success, especially among Latino males. The $239,334 grant to be shared among Berkshire Community College, Greenfield Community College, Holyoke Community College, and the four-year Massachusetts College of Liberal Arts, calls for the colleges to work with regional schools to improve interest in science, technology, engineering, and math.

Briefcase Departments

West Springfield Voters Kill Hard Rock Casino
WEST SPRINGFIELD — West Springfield residents made a strong statement against a resort casino there, with 55% of referendum voters saying no, and killing the chances of Hard Rock International developing the project on the grounds of the Eastern States Exposition. That trims the number of competitors for the sole Western Mass. casino license to just two; Springfield voters have already approved (by a 58-42 margin) a proposal by MGM Resorts International to built a casino in the city’s South End, while Palmer residents will vote in November on whether to approve Mohegan Sun’s project there. The Mass. Gaming Commission is expected to issue a license for one of these projects early in 2014. In West Springfield, 7,578 residents, or 45.7%, turned out to vote, with the proposition losing by 752 votes. According to campaign finance documents filed with the city, Hard Rock and the pro-casino movement spent $936,920 trying to get the project approved, while opponents working with No Casino West Springfield Inc. spent $1,765 — totals which do not reflect a surge of late spending by both sides in the campaign’s final days.

Four Sites Offered for UMass Facility in Downtown Springfield
SPRINGFIELD — Four sites in downtown Springfield have been offered as potential locations for a satellite facility of UMass Amherst, the Republican reported earlier this month. The offers came in response to a request for proposals issued by the university in August. School officials stipulated that they were interested in leasing approximately 25,000 square feet of space in the downtown area and have the ability to double that space at a later date. The four companies that sumitted bids, and their proposed sites, are:
• 1350 Main St., LLC, which is offering space at One Financial Plaza;
• JGT Mass LLC, which is offering space at 1391 Main St. (Harrison Place);
• Massachusetts Mutual Life Insurance Co., which is offering space at 1500 Main St. (Tower Square); and
• Opal Real Estate Group, which is offering space at the Peter Pan Bus Station on Main Street.

Cathedral High School Tornado Claims Settled
SPRINGFIELD — The Diocese of Springfield and Catholic Mutual have announced an amicable resolution of all claims for June 1, 2011 tornado damage to Cathedral High School (CHS); St. Michael’s Academy (SMA), including the preschool and middle-school facilities; and the St. Michael’s Priests Residence building. In addition, other claims relating to damage to property owned by the diocese, including the Our Lady of Mt. Carmel and St. Jude Mission properties in Springfield, have been resolved as part of the agreement. When experts for Catholic Mutual and the diocese did not agree on the cost to repair damage from the tornado to the CHS/SMA middle-school building and other properties, the parties agreed to submit their disagreement to a reference procedure outlined in Massachusetts law to resolve such disputes. That process began in September 2012 and concluded in July 2013. Under the terms of this settlement agreement, within 30 days of its execution, Catholic Mutual will make a payment of $40 million. This amount will be in addition to the $19.9 million previously advanced to the diocese by Catholic Mutual and another $2 million paid directly by Catholic Mutual to Service Master for their initial cleanup services at the site. The diocese will add an additional $200,000 from insurance reserves. This settlement brings all disputes regarding property damage to a final conclusion, without the possibility of further legal challenges. Mike Intrieri, president and CEO of Catholic Mutual, said he is “happy that the process led to this complete settlement without the need for further legal proceedings. We wish the Diocese of Springfield well.” The diocese has already announced plans for partial demolition at the Surrey Road site.

Economic Gulf Grows Between Rich, Poor
WASHINGTON, D.C. — The gulf between the richest 1% and the rest of America is the widest it has been since the 1920s, according to an analysis of Internal Revenue Service figures dating to 1913 by economists at the University of California Berkeley, the Paris School of Economics, and Oxford University. The wealthiest 1% of Americans earned more than 19% of the country’s household income last year — their biggest share since 1928, the year before the stock-market crash — while the top 10% captured a record 48% of total earnings last year. One of the analysts, Berkeley’s Emmanuel Saez, said the incomes of the richest Americans surged last year in part because they cashed in stock holdings to avoid higher capital-gains taxes that took effect in January. In 2012, the incomes of the top 1% rose nearly 20% compared with a 1% increase for the remaining 99%. The richest Americans were hit hard by the financial crisis; their incomes fell more than 36% during the Great Recession of 2007-09 as stock prices plummeted, while incomes for the bottom 99% fell just 11.6%. But since the recession officially ended in June 2009, the top 1% have enjoyed the benefits of rising corporate profits and stock prices, with 95% of the income gains reported since 2009 going to the top 1%. The top 1% of American households had pre-tax income above $394,000 last year, while the top 10% had income exceeding $114,000. The income figures include wages, pension payments, dividends, and capital gains from the sale of stocks and other assets. They do not include so-called transfer payments from government programs such as unemployment benefits and Social Security. The income share of the top 1% bottomed out at 7.7% in 1973 and has risen steadily since the early 1980s, according to the analysis. Economists point to several reasons for widening income inequality, including competition with lower-wage labor in China and other developing countries, resulting in outsourcing of jobs, while technology continues to replace workers in performing routine tasks.

Briefcase Departments

Yankee Candle Sold for $1.75 Billion
DEERFIELD — Last week, Yankee Candle announced its $1.75 billion sale to Jarden Corp., a consumer products company based in Rye, N.Y., boasting a diverse portfolio of more than 120 brands, including Coleman, Rawlings, Ball, Bicycle, Diamond, Mr. Coffee, First Alert, Oster, and Sunbeam. The move comes six years after Chicago-based Madison Dearborn Partners bought the iconic scented-candle brand for $1.6 billion. Dearborn put the company up for sale earlier this year with an asking price of $2 billion. Michael Kittredge II founded Yankee Candle in his parents’ garage in South Hadley in 1969 and grew it into a multi-million-dollar retailer and tourist destination in Deerfield, employing more than 6,500 workers year-round. Kittredge sold 90% of his shares in the company in 1998 for about $400 million, and the new management took the company public in 1999.

Westfield State Trustees Cheer Dobelle’s Spending
WESTFIELD — Westfield State University President Evan Dobelle received a strong vote of support from the school’s board of trustees following an accountant’s report detailing exorbitant travel and spending habits by university officials.
“When you are a visionary and want to do something great, you’re going to have detractors,” said board member Terrell Hall during the trustees’ recent meeting, which included an hour-long presentation by accountant David Diiulis of the O’Connor & Drew auditing firm, outlining repeated violations of travel and credit-card policies involving Dobelle and other employees that emerged during a five-month review commissioned by the trustees. Among the findings was that Dobelle reimbursed the school $68,000 for personal use of a university credit card between June 2008 and February 2013, in violation of school policy barring the use of WSU credit cards for personal use. In defending the findings, Dobelle acknowledged some bookkeeping errors but insisted that all expenses were for the benefit for the university. “In no small measure due to the travel and fund-raising you and I have undertaken with various other university representatives, faculty, and students in the few years since I began this job, we have accomplished game-changing successes,” he said, citing an overhaul of WSU’s international exchange program, the implementation of new academic programs, and capital improvements on campus. “Meaningful change does not occur without substantial investment of time and financial resources, and cultivation of support. I am deeply proud of what our university has accomplished in these past few years, and am eager to continue this trajectory toward even more significant successes in the years to come.” O’Connor & Drew found that Dobelle and other officials violated the school’s travel and credit-card policies while visiting San Francisco, New Orleans, Fort Lauderdale, Orlando, New York City, Washington D.C., and other cities. Despite lacking receipts and other documentation, university officials also charged expenses from Spain, Vietnam, Thailand, and China to the Westfield State Foundation, the school’s nonprofit fund-raising arm. In particular, the report criticized university officials for using school credit cards for personal expenses, regardless of whether the money was reimbursed; booking trips with little advance notice; changing or canceling flights; and running up excessive costs for meals and hotel rooms.

Palmer, Mohegan Sun Unveil Host-community Agreement for Casino
PALMER — The town of Palmer and Mohegan Sun announced a host-community agreement last month, revealing millions of dollars in mitigation payments and setting the stage for a referendum date so residents can vote on the casino proposal. The agreement features an annual mitigation payment of $15.2 million to the town, plus shares of gaming revenues, as well as an additional, one-time $2.94 million fee for public safety and streetscape improvements in the business and commercial districts. The agreement was signed by Mitchell Etess, CEO of the Mohegan Tribal Gaming Authority, and Palmer Town Manager Charles Blanchard. “This is way more than just a walk-in casino. It will have all the components of a resort destination that will bring people from miles and miles around,” Etess said. In the first year of the casino’s operation, the mitigation payment to the town would be $18 million based on gaming revenue. Mohegan officials asked for a referendum date of Nov. 5, which the Town Council approved last week. Mohegan Sun has proposed a nearly $1 billion resort casino on 152 acres owned by Northeast Realty across from the Massachusetts Turnpike exit 8. The plan faces competition for the sole Western Mass. casino license from MGM Resorts International in Springfield and Hard Rock New England in West Springfield. The state Gaming Commission is expected to award the license in April. In addition to the mitigation payments, the Mohegan Sun project is expected to generate an estimated $900,000 to $1.4 million in annual hotel-occupancy taxes and an additional $225,000 in annual meals taxes to the town. The agreement calls for more than $40 million in improvements to the town’s infrastructure system. The casino would feature 3,000 slot machines and 80 table games in an approximately 320,000-square-foot facility. Also included in the plan is a 250-room hotel and conference center, a casual-dining restaurant, and a fine-dining restaurant, as well as a 230,000-square-foot retail development featuring more dining options and other entertainment, and a second, 300-room hotel with a water park. More than 3,000 jobs are expected to be created between the casino, water park, and retail complex.

Mass. Medical Society Issues Guide to ACOs Targeted to Physicians
WALTHAM — The Mass. Medical Society has released a new publication for physicians and their practice managers, “MMS Guide to Accountable Care Organizations: What Physicians Need to Know.” The 49-page publication provides detailed guidance on the issues that physicians should consider whether they are currently participating in an accountable-care organization, forming or joining an ACO, or entering into an integration agreement with another healthcare organization. These issues include assessing the readiness of a practice to join an ACO, choosing the right ACO, how to approach an ACO, technology considerations, legal and governance issues, financial impacts, and achieving clinical integration. “It’s becoming more and more difficult for independent practices to compete effectively in today’s healthcare system,” said Dr. Ronald Dunlap, president of the Mass. Medical Society. “Many physicians are reassessing their role in this rapidly evolving system. For some, this means becoming an employee of a larger healthcare organization. Others may want to retain some of their professional autonomy, while integrating some aspects of their practice with an ACO. These are complex issues, and there is a great need for objective, third-party information. It’s our hope that this guide will help them in the decision-making process. The book was written for the MMS and its physicians by Chris Collins, a principal at ECG Management Consultants of Boston, and J. Mark Waxman, a senior partner in the Boston office of the law firm Foley & Lardner. It is available to MMS members at www.massmed.org/acoguide.

Briefcase Departments

UMass Exploring Creation of Satellite Center in Downtown Springfield

The University of Massachusetts recently issued a request for proposals to lease classroom space in downtown Springfield, where it is considering locating a satellite center that would provide additional access to a high-quality, affordable education to Western Mass. residents and accelerate the university’s growing presence in the city and region. “We very much want to open a satellite center in Springfield because an essential aspect of our mission of service to the Commonwealth is working to build better lives and futures for people and communities, which is what this would represent,” said UMass President Robert Caret. “We know that the demand is there and that the business and political leadership supports it. The questions before us now are whether it is feasible to do this and whether there are sufficient resources available to help us meet this challenge.” He continued, “we view the issuance of the RFP as a critical next step in this process. We’re hopeful that the responses to it will begin to provide us with the clarity we need to move forward.” A study conducted last year by the UMass Donahue Institute, at Caret’s request, identified Springfield as a prime site for a satellite center in part because UMass Amherst, which would take the lead in overseeing it, already has a significant presence there. A number of UMass Amherst faculty and staff are engaged in Springfield in various ways, conducting research, teaching, or working in administrative capacities. They work in a variety of areas, including health, fine arts, creative economy, natural sciences, engineering and green industries, as well as management, sports, and education. UMass Amherst faculty and staff are involved in more than 120 programs in Springfield. UMass Amherst is also in the process of moving its public radio station, WFCR, from Amherst to Springfield. Last month, the Pioneer Valley Life Sciences Institute, a partnership between UMass Amherst and Springfield’s Baystate Medical Center, received a $5.5 million grant from the Massachusetts Life Sciences Center. But UMass officials would like to take the engagement a step further by establishing a base in Springfield that would serve as a general portal to the resources of UMass Amherst and the entire UMass system. The satellite center concept envisions courses being provided by at least several and possibly all five of the UMass campuses. Officials said that the RFP process should reveal whether UMass is able to obtain space in a suitable location at an affordable price, which will help determine whether UMass can move forward with the satellite center project.

 

Melin to Step Down as CDH President

NORTHAMPTON — Matthew Pitoniak, chair of the board of trustees of Cooley Dickinson Hospital, announced on July 29 that, after 25 years of exemplary leadership, Craig Melin will resign as president and CEO. The move will be effective Jan. 31, 2014. Pitoniak said the board is pleased that Melin will stay on for six months to complete initiatives under way that are critical to the transformation of Cooley Dickinson in the face of environmental changes in health care, as well as its recently finalized affiliation with Massachusetts General Hospital. Melin said he chose this time to plan his leave because he believes that Cooley Dickinson faces a five-year transition and that it should be under one leader. As he was not prepared to commit to a 30th anniversary, he told the board and Mass General that he wished to “step down to clear the way for someone who can make the new commitment Cooley Dickinson needs.” Pitoniak said Melin’s decision was unexpected. Dr. Peter Slavin, president of Mass General, said, “I was very surprised to hear about Craig’s decision to leave Cooley Dickinson, to which he has been so passionately committed for 25 years. While I’m not happy about losing him from our team, I am pleased that Craig has agreed to stay on while we search for a new CEO. Our work to realize the benefits of the new relationship between Cooley Dickinson and Mass General will continue uninterrupted. I look forward to working with Craig over the next six months.” Besides the recently completed affiliation with Mass General, CDH and Melin have been deeply engaged in strategic initiatives, such as preparing for population health management, repositioning the organization to meet the budget challenges of the new lower-priced payment system, and improving the organization’s already-intense focus on quality. Melin said, “It has been an honor to lead Cooley Dickinson for the past 25 years. I look forward to working with the trustees, physicians, staff, and Mass General so that Cooley Dickinson continues on the path toward more exceptional care and better health for our community.” Pitoniak said he will form and then chair a committee that will conduct a national search for Melin’s successor. Slavin will be actively involved in the process.

 

Investment in Structures Expands in 2nd Quarter

WASHINGTON, D.C. — Non-residential fixed investment in structures expanded 4.6% on an annualized basis during the second quarter of 2013, according to the July 31 gross domestic product (GDP) report by the U.S. Commerce Department. This increase followed a 4.6% decline in the first quarter of the year. Fixed investment in equipment rose 4.1% in the second quarter, and overall investment in structures expanded 6.8%. Residential fixed investment increased 13.4% following 12.5% expansion in the first quarter. Fixed investment in the nation’s residential sector has been growing at a double-digit clip since the third quarter of 2012. Personal-consumption expenditures expanded 1.8% in the second quarter, with spending on goods rising 3.4%. Expenditures on services, on the other hand, advanced only slightly at 0.9%. Expansion in real private inventories contributed 0.4 percentage points to real GDP growth for the second quarter after adding 0.9% during the first quarter. Federal government expenditures declined 1.5% during the second quarter primarily due to a 3.2% drop in non-defense spending. Meanwhile, national defense spending dropped 0.5%. State and local government spending rebounded mildly, growing only 0.3% during the second quarter following three consecutive quarters of declines. In total, real GDP expanded 1.7% during the second quarter following a revised 1.1% increase in the first quarter of the year. “Overall, consumer spending remains at the heart of the nation’s economic recovery, including in housing-related categories,” said Anirban Basu, chief economist of Associated Builders and Contractors (ABC). “However, today’s GDP report is only modestly reflective of recent increases in mortgage rates, which could soften residential investment growth in the months ahead. ABC continues to forecast roughly 2% growth in the U.S. economy in 2013, though the first half was associated with sub-2% growth. It remains likely that the economy will accelerate a bit during the second half of the year, but there continue to be headwinds such as rising interest rates, sequestration, and a loss in municipal confidence in the aftermath of Detroit’s bankruptcy.

 

Hiring Expected to Remain Stable in 2013

CHICAGO — U.S. workers can expect a stable employment environment over the next six months along with an upswing in temporary jobs. In CareerBuilder’s latest national survey, employers indicated that full-time, permanent hiring in the second half of 2013 will mirror that of 2012, while temporary and contract hiring is expected to increase 10% over last year. The survey, which was conducted online by Harris Interactive on behalf of CareerBuilder from May 14 to June 5, included more than 2,000 hiring managers and human-resource professionals across industries and company sizes. “Companies are adding more employees to keep pace with demand for their products and services, but they’re not rushing into a full-scale expansion of headcount in light of economic headwinds that still linger today,” said Matt Ferguson, CEO of CareerBuilder. “The projected surge in temporary hiring from July to December is evidence of both a growing confidence in the market and a recession-induced hesitation to immediately place more permanent hires on the books. However, the overall pace of permanent hiring is stronger today in various industries and geographies, and will continue on a path of gradual improvement for the remainder of the year.” Looking forward to the next six months, the study conducted by Harris Interactive shows that 44% of employers plan to hire full-time, permanent employees, on par with last year; 25% plan to hire part-time employees, up from 21% last year; and 31% plan to hire temporary or contract workers, up from 21% last year. In addition to recruiting for revenue-related functions such as sales and customer service, employers are placing an emphasis on roles involving newer technologies, big data, social media, and financial services. In the Northeast specifically, 43% of surveyed companies plan to hire full-time, permanent employees, down slightly from 44% in 2012.

 

IMF Forecasts Slow Global Growth

WASHINGTON, D.C. — The International Monetary Fund (IMF) forecasts slower global growth in 2013 and 2014 than it did just three months ago, citing the prospect of a slowdown in key developing countries such as China and Brazil and a protracted recession in Europe. The international lending agency released an update of its World Economic Outlook issued in April, projecting the world economy will grow at 3.1% this year, down from a 3.3% forecast three months ago. The 2014 projection was cut to 3.8% from 4.0%. “The world economy remains in a three-speed mode,” said Olivier Blanchard, IMF director of research, at a news conference. “Emerging markets are still growing rapidly. The U.S. recovery is steady, but much of Europe continues to struggle.” Blanchard said growth almost everywhere is weaker than forecast in April, but downward revisions are particularly noticeable in developing countries. The IMF said the possibility of a more drawn-out slowdown in developing countries is a new risk that has emerged since April. One potential drag on global growth is the possibility that the U.S. will start tapering its extraordinary stimulus program of bond buying. The Fed program — known as quantitative easing — has injected more $2 trillion into financial markets since late 2008 and kept borrowing costs down. With markets already anticipating the tapering, the IMF said some developing countries are already feeling the effects in the form of falling share prices and depreciating currencies. A recession in the 17 countries that use the euro currency is shaping up to be deeper than expected, another factor pulling down the forecast, according to the IMF. The U.S. economy also looks weaker than previously expected, the IMF said, citing tight fiscal and financial conditions. The IMF lowered forecasts for U.S. growth to 1.7% in 2013, down from 1.9% in April, and to 2.7% for 2014, down from 2.9%. One reason cited was the sequester remaining in place until 2014, longer than previously projected.

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Springfield Voters OK MGM Proposal

SPRINGFIELD — Springfield voters went to the polls on July 16 and endorsed an $800 million casino proposal by MGM Resorts International. Voters supported the MGM plan by a vote of 13,973 to 10,260, with roughly 25% of registered voters turning out. MGM now moves to the next phase of the competition for the lone Western Mass. casino license — review by the Mass. Gaming Commission. The commission’s votes on licenses for three regions — Western Mass., Eastern Mass., and the southeastern part of the state — are expected in early 2014. MGM plans to build in the tornado-damaged South End neighborhood — more specifically, a multi-block area between State and Union streets, Main Street, and East Columbus Avenue.

 

West Springfield Voters to Consider Casino Question on Sept. 10

WEST SPRINGFIELD — The West Springfield Town Council voted unanimously to set Sept. 10 as the date for a referendum on Hard Rock Hotel & Casino New England’s proposal to build an $800 million casino project near the Big E. Many of the 60 onlookers at the vote wore T-shirts reading “Westside Support Hard Rock, Yes.” One council member was absent. Hard Rock would like to construct a destination resort casino project on 38 acres on the Eastern States Exposition campus off Memorial Avenue. Plans include a 12-story hotel, a Hard Rock Café, and a parking deck. Hard Rock has also taken out options to buy property along Circuit Avenue to use for additional parking. West Springfield voters must approve the project for it to move ahead. The Massachusetts Gaming Commission may authorize up to three casinos in the state, with one slated for Western Mass. In another recent vote, Springfield voters approved the project proposed by MGM Resorts International to build a casino in the city’s South End.

 

PVPC ‘State of the People’ Report Receives Award

SPRINGFIELD — The Pioneer Valley Planning Commission has been selected as the recipient of the 2013 Medium Metro General Achievement Award by the National Association of Regional Councils (NARC). PVPC received the award in June at NARC’s 47th annual conference and exhibition in Philadelphia. The award recognizes the 10-year update of the “State of the People of the Pioneer Valley” report, which provides simple and familiar images to help evaluate eight categories of health and well-being indicators for the people who live in the region: children and youth; the elderly population; education; health and safety; economic security; housing; civic, arts, and recreation; and the environment. Each indicator is evaluated with a letter grade, and maps are provided to examine equity by comparing communities throughout the region. A unique function of this report is that it evaluates every topic area as well as each individual indicator with a letter grade (A-F), making it easier to quickly get a sense of the trends described by the data. Grades incorporate trends for the region over time, the Pioneer Valley’s comparison to rates statewide, and two measures of equity between the communities within the region. The report is the product of a vibrant working partnership among eight of the major foundations, hospitals, and planning organizations in the Pioneer Valley, including the Beveridge Family Foundation Inc., the Community Foundation of Western Mass., Cooley Dickinson Hospital, the Irene E. and George A. Davis Foundation, the Franklin Regional Council of Governments, Partners for a Healthier Community Inc., the United Way of Hampshire County, and the United Way of Pioneer Valley. “This expansive collaboration is the result of many regional partners coming together with the goal of having available good, accessible, and easy-to-comprehend data about the trends in our region,” said PVPC Executive Director Timothy Brennan. “The hope is that this data will help drive strategic decision making for funding, planning, and service organizations, and that having a shared understanding of the state of our people will give us a shared sense of goals for our region.” The National Assoc. of Regional Councils (NARC) serves as a national voice for regionalism by advocating for regional cooperation as the most effective way to address a variety of community planning and development opportunities and issues. In service to this mission, the NARC General Achievement Awards recognize excellence in programs and services of regional councils and metropolitan planning organizations across the U.S., thereby contributing to better and more efficient government. In past years, PVPC has submitted successful NARC annual award nominations for Valley Vision 2, the regional land-use plan for the Pioneer Valley region (in 2008); for the Plan for Progress, the region’s economic-development plan (in 2005); and on behalf of the Mass. Assoc. of Regional Councils, of which PVPC is a member (in 2004). The 2013 “State of the People” report is available at www.pvpc.org/stateofthepeople.

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Holyoke Medical Center Taps New Jersey’s Hatiras as New President, CEO
HOLYOKE — The board of directors of Valley Health Systems and Holyoke Medical Center have announced that Spiros Hatiras will become the next president and CEO of Holyoke Medical Center and its affiliates. Hatiras will succeed Hank Porten, who is stepping down after nearly 28 years in that role. “We are absolutely delighted to bring such an accomplished and passionate leader to our hospital and community,” said Priscilla Mandrachia, chairwoman of the board of directors of Valley Health Systems, the parent company of Holyoke Medical Center and its affiliates. “The search committee, after an exhaustive process, was particularly impressed with Mr. Hatiras’ understanding of our culture and love of community healthcare. He has expertise in reform initiatives and a deep commitment to physicians, staff, and quality services. Valley Health Systems and Holyoke Medical Center have been fortunate to have had the leadership of our present CEO, Hank Porten, for 28 years.  We expect Mr. Hatiras to build on Mr. Porten’s accomplishments and lead our healthcare system successfully into the future.” Hatiras previously served as president and CEO of Hoboken University Medical Center in New Jersey, a 333-bed facility with nearly 500 physicians and nurses offering a full range of medical services. During his tenure there, Hatiras cut operating losses in half over two consecutive fiscal years without reducing staff, and oversaw the implementation of electronic medical records. “We all know healthcare is going through some very complicated changes, and Mr. Hatiras has demonstrated the knowledge and ability to meet these challenges head on,” said Peter Connor, chairman of the board of directors at Holyoke Medical Center. “He is a proven leader who understands our mission as a community hospital and will help guide us through the complexities of healthcare reform while maintaining a focus on quality care and patient satisfaction.” Currently serving as chief operating officer of NIT Health in New York, specializing in the implementation of electronic medical records for hospitals and health care systems, Hatiras has had a distinguished healthcare career in New Jersey. In addition to his work at Hoboken University Medical Center amid a complicated transition to private ownership, he has also served as vice president of post-acute, ancillary, and support services for Bon Secours Health System and corporate director of rehabilitation services for Franciscan Health System of New Jersey. “I am extremely excited to join Valley Health Systems and Holyoke Medical Center,” Hatiras said. “It’s the best fit for both of us. I’m returning to do what I love the best, working in a community hospital and helping it succeed. And the hospital’s commitment to community health is exactly what healthcare reform should be embracing. I look forward to working with the entire organization to build upon the solid foundation that Hank has left for us. The hospital is positioned well for the future. I’m ready to go.” Hatiras is certified in healthcare management by the American College of Healthcare Executives. He has a master’s degree in health care management from New York University and a bachelor’s degree in physical therapy from the Athens Institute of Technology in Athens, Greece. He currently lives with his wife, Gwen, and two children, Ava and Zach, in New Jersey. “My wife and I are very excited about moving our family to Massachusetts,” Hatiras said. “It’s the perfect location for us.” He will assume leadership of Holyoke Medical Center in early September, at which time he will also move to the area. Hatiras’ wife and children will relocate after his daughter Ava’s graduation from high school next year. Holyoke Medical Center is a 198-bed facility with 1,200 employees, including more than 260 physicians and consulting staff.

Obama Administration Delays Healthcare Law’s Insurance Mandate
WASHINGTON, D.C. — Earlier this month, President Obama’s administration announced a one-year delay in his healthcare law’s mandate that larger employers provide coverage for their workers or pay penalties. The decision postpones the effective date beyond next year’s midterm elections into 2015. Employer groups welcomed the news of the concession, while Republicans made it clear that they would not cease to make the law a key campaign issue for the third straight election cycle. While the postponement does not affect other central provisions of the law, including those establishing health-insurance marketplaces in the states, known as exchanges, it throws into disarray the administration’s effort to put those provisions into effect by Jan. 1. Under the law, most Americans will be required to have insurance in January 2014, or they will be subject to tax penalties. The administration’s announcement did not address delaying that requirement or those penalties. Administration officials sought to put the action in a positive light. “We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively,” Mark Mazur, assistant Treasury secretary, wrote on his department’s website. “We recognize that the vast majority of businesses that will need to do this reporting already provide health insurance to their workers, and we want to make sure it is easy for others to do so.” The Affordable Care Act, signed into law in 2010, originally required employers with more than 50 full-time workers to offer them affordable health insurance starting in 2014 or face fines. Some companies with payrolls just above that threshold said they would cut jobs or switch some full-time workers to part-time employment so that they could avoid providing coverage. Under the provisions to set up state-based marketplaces for coverage for uninsured Americans, subsidies are supposed to be available for lower- and middle-income people who qualify and are not insured through their employers. By delaying the mandate for businesses and its reporting requirements, the government may be unable to confirm before 2015 whether employers are offering insurance to their employees, making it difficult for the exchanges to know who is entitled to subsidies to help pay for policies. Enrollment in the exchanges is to begin Oct. 1, with insurance coverage taking effect Jan. 1. “We are on target to open the health-insurance marketplace on Oct. 1, where small businesses and ordinary Americans will be able to go to one place to learn about their coverage options and make side-by-side comparisons of each plan’s price and benefits before they make their decision,” Valerie Jarrett, Obama’s senior adviser and liaison to the business community, wrote on the White House website.

Economic Growth Remains Sluggish in Massachusetts
BOSTON — Even as the Massachusetts economy shows some genuine signs of strength, contractionary federal government fiscal policy is slowing economic growth in Massachusetts, according to a recent report by regional economists for MassBenchmarks. In the coming months, assuming these policies stay in place, a further retarding of economic growth can be expected. At the same time, the state’s labor market continues to be under considerable stress and faces profound challenges that are not fully reflected in the state’s headline unemployment rate. The strengthening of the state housing market is the most prominent sign of strength in the state economy. Residential house prices, sales, and building permits are all on the rise. As a result, employment in the construction sector is increasing, but it remains well below its pre-recession levels. The unemployment rate, despite a recent uptick, remains one percentage point below the national level. Strong state sales-tax collections reflect the willingness of households to spend, especially for new automobiles. But these signs of life are being undermined by federal tax and budget policies that have been implemented since the first of the year. On the tax side, income-tax rates were increased for upper-income households on Jan. 1. In addition, the temporary payroll tax cut, which had been implemented during the recession, was not extended. This has a more widespread impact, with a disproportionate burden being placed on low-income households. Had these tax increases been offset by increased federal investment, their impact would have been modest, but instead the federal government elected to adopt significant spending cuts. Federal budget sequestration, implemented in March, has an obvious impact on the state’s research-intensive enterprises and government contractors. But its impact also extends to Head Start and other educational programs, career centers, job-training services, and Community Development Block Grant funds, all of which have experienced significant cuts in recent months. The impact of these federal policies can be seen in the state’s recent economic performance. According to the MassBenchmarks Current Economic Index, growth in state gross domestic product slowed to a 1% annualized rate of growth in April and May. Employment growth in the state has virtually stalled, and state withholding tax growth reflects this. And growing international competition and the economic challenges facing the state’s major trading partners, including Canada, the European Union, and Asia, appear to be taking their toll on the Commonwealth’s export activity, which declined by 11.1% between April 2012 and April 2013. While labor conditions in Massachusetts appear to be better than those nationally, there are signs of considerable stress in the state labor market. Underemployment (those working part-time but wanting full-time work) has risen during the first five months of the year, and hidden unemployment (those who are out of work, have not looked for a job in the last four weeks, and would take a job if offered) is also on the rise. The plight of younger and less skilled workers is of particular concern, the report notes, as the extent of their disconnection from the labor market is troublingly high, and the longer it lasts, the more difficult it will be to remedy. For these workers, the improvement in headline unemployment is of little consolation, as their prospects for employment are being limited by a recovery that is being undermined by counterproductive federal policy choices.

Construction Industry Adds 13,000 Jobs in June
WASHINGTON, D.C. — In June, the nation’s construction industry unemployment rate fell to 9.8% for the first time since September 2007 with the addition of 13,000 jobs, according the July 5 report by the Department of Labor. Since June 2012, the industry has added 190,000 jobs, a 3.4% increase. Every major category of construction experienced gains in employment for the month. Non-residential building construction employment increased by 700 jobs for the month and has added 16,400 jobs, or 2.5%, during the last 12 months. Residential building construction employment inched up by 100 jobs in June and is up by 13,100 jobs, or 2.3%, compared to the same time last year. Non-residential specialty trade contractors gained 2,100 jobs for the month and have added 47,100 jobs, or 2.3%, during the last 12 months. Residential specialty trade contractors have added 5,100 jobs since May and gained 77,100 jobs, or 5.2%, since June 2012. Heavy and civil-engineering construction employment increased by 5,600 jobs last month, and the sector has added 36,300 jobs, or 4.2%, from one year ago. Across all industries, the nation added 195,000 jobs as the private sector expanded by 202,000 jobs and the public sector shrunk by 7,000 jobs. However, the nation’s unemployment rate was unchanged from the previous month at 7.6% and remains lower than the 8.2% registered in June 2012. “Today’s employment report is positive news for the nation’s construction industry,” said Associated Builders and Contractors Chief Economist Anirban Basu. “While the economy continues to face a number of headwinds, including most recently in the form of higher interest rates, the wealth effect associated with rising equity markets and home prices dominates the recovery. The result has been steady expansion in consumer spending, which is associated with expanding job creation in closely aligned sectors of the economy. For construction contractors, the implication is that the volume of work associated with lodging and shopping-center construction will continue to march higher.” Basu noted that one-third of the construction jobs added last month were added by specialty trade contractors. “There was also evidence of more people falling into part-time work, and the broadest measure of unemployment, which includes discouraged workers and people working part-time for economic reasons, rose to 14.3% in June. Despite this increase, the construction industry’s diminishing unemployment rate shows that societal income tied to wages and salaries continues to expand slowly, which suggests the economy will only grow at a moderate pace. That should be enough to help drive nonresidential construction spending higher, but progress will remain gradual.”

Horace Smith Fund Awards $276,000 to Area Students
SPRINGFIELD — On June 13, The Horace Smith Fund staged its 114th corporators’ meeting and scholarship awards ceremony at Elms College. Samalid Hogan, chair of the board of trustees, announced 24 scholarship and three fellowship recipients this year. “Providing that students maintain at least a B average in college, each scholarship provides a total of $10,000 over four years, and each fellowship provides $12,000 over three years,” she told the audience comprised of the students, parents, trustees, and corporators. “Therefore, The Horace Smith Fund is happy to be able to grant a total award of $276,000 to area students this year.” The Horace Smith Fund was established in 1899 by a successful and generous philanthropist named Horace Smith, according to James Broderick, chair of the scholarship committee. “He and Daniel Wesson were the founders of Smith & Wesson, located in Springfield. Mr. Smith’s will provided that the residual of his estate, after several bequests to relatives and institutions, was to be used for public purposes at the discretion of his executors. They decided that it should be used to help deserving students finance their education.” The scholarships and fellowships are named for Walter F. Barr, a West Springfield businessman, whose widow left the bulk of the family estate to the Horace Smith Fund in 1950. Recipients must be residents of Hampden County. The keynote speaker at the awards ceremony, attorney Michael Gove, was a past recipient of the Walter S. Barr Scholarship and Fellowship.

Briefcase Departments

Eastman Chemical to Convert Indian Orchard Site to Natural Gas
SPRINGFIELD — Eastman Chemical Company intends to convert the coal-fired boiler at its Indian Orchard site, which it acquired as part of its acquisition of Solutia in 2012, to natural gas combustion by January 2016. (Solutia is a wholly owned subsidiary of Eastman.) “Several factors have led to this announcement,” said David Lahr, plant manager for the Indian Orchard site, “including compliance with new regulatiory requirements, Eastman’s commitment to protecting local air quality, as well as the abundance of domestic natural gas at prices increasingly competitive with coal.” The Indian orchard site currently operates three boilers — two natural gas units and a coal fired unit. The conversion to natural gas will allow the Indian Orchard site to comply with the U.S. Environmental Protection Agency’s recent industrial boiler regulations, said Lahr. Several years before EPA finalized these regulations, Solutia discussed with the Mass. Department of Environmental Protection that the site was strongly considering a switch to natural gas combustion to meet its steam and electricity needs in order to comply with these regulations once they became final. Currently, the deadline by which Eastman must comply with these boiler regulations is Jan. 31, 2016.

STCC, WNE Sign Articulation Agreement for Online Business Program
SPRINGFIELD — Springfield Technical Community College (STCC) and Western New England University (WNE) recently signed an articulation agreement to provide a coordinated online business degree completion program. The two colleges have been working together informally over the past few years to provide this opportunity to STCC and WNE students. However, the formal signing of this articulation agreement creates an opportunity for STCC students to transfer to Western New England University as a junior, but also allows these students to take classes online — providing them with more flexibility in how they earn their bachelor’s degree. STCC Dean of the School of Business and Information Technologies Leona Ittleman said she credits both STCC and WNE faculty for the work they have done to make this agreement between the campuses a reality. “Many of our best and brightest students transfer to Western New England University and receive the benefits of both colleges’ experience and dedication to student learning,” said Ittleman. “And having an online program is not only convenient for our students, but it also provides them with unlimited access to the resources of both campuses.”

Mass. BHE OKs Policy Change on Dorms at Community Colleges
BEDFORD — The Mass. Board of Higher Education (BHE) recently approved a policy change to allow consideration of campus proposals to build residence halls at any of the state’s 15 community colleges. The measure was approved on a unanimous vote at the Board’s last scheduled meeting of the year. BHE policy in effect since 1980 precluded consideration of residence halls at community colleges. The vote to change the policy establishes Massachusetts as the 40th state to permit the construction of student housing on community college campuses. Nationwide, 22% of community colleges offer student housing, mostly at medium-sized institutions located in rural areas. The concept is neither new nor novel; other states have more than 20 years’ experience in offering and managing student housing at two-year institutions. The overall percentage of community college students housed in residence halls, however, remains relatively small. “I want to stress that this is not a decision to initiate a program of student housing construction at community colleges,” said Richard M. Freeland, Commissioner of Higher Education. “Rather, this is a vote to be prepared to consider proposals in cases where they may enhance the educational experience of our students.” The department’s research indicates that residential life at community colleges has a positive impact on academic outcomes such as graduation rates. Students who live on campus are more fully integrated into college life, resulting in overall higher levels of academic achievement. A similar, positive association between dorms and academic achievement has long been substantiated at four-year colleges and universities. “Among all community colleges across the nation, we see a statistically significant association between the existence of student housing and increased graduation rates,” said Carlos Santiago, senior deputy commissioner for Academic Affairs at the Department of Higher Education. To date, only one Massachusetts community college has expressed public interest in a student housing proposal. Mount Wachusett Community College, located in Gardner, has indicated that it would investigate the feasibility of establishing a residential life program and facility.

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Mohegan Sun Increases Projected Project Cost
PALMER — Mohegan Sun has upped the projected cost of its Palmer gambling resort to nearly $1 billion with the addition of an indoor-outdoor water park and a second hotel, making the rural project the largest in the competition for the sole Western Mass. casino license. The project will probably include indoor surfing, a lazy river feature, and an extensive series of outdoor zip lines. The new $130 million to $150 million resort component, inspired by the Pump House water park at the Jay Peak resort in Vermont, will be developed by Boston-based Finard Properties, which has also joined with Mohegan Sun to build a retail complex at the development. Plans call for the second hotel to be connected to the water park and detached from the main casino hotel. The second hotel would have about 250 rooms. Mohegan Sun is one of three prominent gambling companies in the hunt for casino development rights in Western Mass. Mohegan is competing with MGM Resorts, which has proposed a casino and entertainment complex in downtown Springfield, and Hard Rock International, which has planned a casino and hotel resort on the Big E fairgrounds in West Springfield. The state Gambling Commission is expected to choose the winning project in early 2014.

Springfield Symphony Orchestra Hires New Executive Director
SPRINGFIELD — The board of the Springfield Symphony Orchestra (SSO) announced that it has hired Audrey Szychukski as the new executive director of the SSO. Audrey Szychulski will join the SSO on Aug. 1 upon leaving her current position as executive director of the Erie Philharmonic in Erie, Pa. Szychulski fills the vacancy created in January when long-time SSO Executive Director Michael Jonnes retired. SSO President Kristina Drzal Houghton noted that, “from our first round of résumé screening, and through every subsequent step of interviewing, reference gathering, and especially after spending time with her, Audrey has consistently stood out as our most promising candidate for this critical position. The executive board and I feel that we have found the right person to help us lead the SSO through our next period of success.” SSO Musical Director Kevin Rhodes was equally positive, commenting that “I could not be more excited to be welcoming Audrey to the SSO family. She will bring an energetic blend of skill, enthusiasm, and musical knowledge to the SSO. Trained as both an arts administrator and as a musician, I am really looking forward to the synergy that Audrey and I will develop as the Springfield Symphony begins its 70th-anniversary season and we guide the orchestra into its eighth decade.” The symphony will make a further announcement and formal introduction closer to Szychulski’s official start date. Peter Salerno, acting executive director of the SSO, will continue in that capacity until Aug. 1.

REB Head Bill Ward to Step Down This Fall
SPRINGFIELD — J. William “Bill” Ward, a longtime leader in the region’s workforce-development arena and president and CEO of the Regional Employment Board of Hampden County (REB), will step down from his position at the end of this year or early 2014. Ward has served in his position with the REB for 32 years and was the driving force behind the organization’s leadership and innovation in a number of workforce initiatives, including the development of one-stop career centers FutureWorks in Springfield and CareerPoint in Holyoke, which serve 20,000 job seekers annually. In a career that has been primarily focused on creating access to employment and self-sufficiency for the region’s low-income citizens, it was under Ward’s leadership that the REB established the Minority Employment Program in the 1980s. This initiative found employment for approximately 500 people a year during the program’s existence. The REB opened the first competitively bid one-stop career centers in 1992, which were recognized by the National Alliance of Business as the “One-Stop Centers of the Year.” Ward launched the Center for Youth Internships and Employment to prepare disadvantaged youth for employment, and formed the Women’s Mentoring Partnership designed to help women transition from welfare to work, matching low-income women with professional women in the business world for mentorship and support. In 1992 he founded the Literacy Volunteer Network, which trained more than 400 volunteers to tutor adult learners in English-literacy skills. The LiteracyWorks initiative formed during his tenure has coordinated various literacy initiatives in the region. Under his leadership, an early-literacy initiative, Talk/Read/Succeed, achieved local and national funding while aiming to raise the literacy skills of young children living in Springfield Public Housing centers, a requirement for future economic success. The REB under his direction started a precision-manufacturing initiative designed to replace retiring workers in the industry with the next generation of machinists by strengthening training and outreach at vocational schools in the region. Ward has been recognized for taking a leadership role in promoting community justice and in 2010 received the Human Relations Award from the National Conference for Community and Justice. In 2009 BusinessWest magazine honored him as a Difference Maker for his contributions to quality of life in the Pioneer Valley. His community service and engagement include service as board president of the Assoc. of Community Living, Abilities Unlimited/Kamp for Kids, and Partners for a Healthier Community.  He also serves on the board of Friends of the Homeless of Greater Springfield. The REB board of directors has established a search committee to identify the organization’s next leader, and a successor will be selected by late this year. Information on the position can be found online at www.rebhc.org.

Construction Unemployment Falls to 10.8% in May
WASHINGTON, D.C. — With the summer building season underway, the nation’s construction industry added 7,000 jobs in May as the unemployment rate dipped to 10.8%, which is down from 13.2% in April and the lowest rate since October 2008, according to U.S. Labor Department. Since May 2012, the industry added 189,000 jobs, or 3.4%. Despite gains in every other construction sector, the non-residential building sector lost 2,600 jobs for the month. Year-over-year, the sector added 15,300 jobs, or 2.3%. Non-residential specialty trade contractors added 1,200 jobs in May and netted 51,600 workers, or 2.5%, since the same time last year. Heavy and civil-engineering employment rose by 3,100 jobs in May and increased by 28,600 jobs, or 3.3%, from May 2012. In contrast, the residential sector added 900 jobs for the month and 18,100 jobs, or 3.2%, during the last year. Residential specialty trade contractors added 4,600 workers for the month and 76,300 workers, or 5.2%, on a year-over-year basis. Overall, the nation added 175,000 jobs as the private sector expanded by 178,000 jobs and the public sector shrunk by 3,000 jobs.

Briefcase Departments

Tighe & Bond Publishes 2012 Water, Sewer Rates
WESTFIELD — Tighe & Bond recently published the results of its 2012 water and sewer rate surveys for communities in Massachusetts. The results from these latest surveys indicate that residential users in Massachusetts pay approximately $498 and $646 annually for water and sewer, respectively. This represents increases of 6% and 8.2% above the 2010 averages. For more than a decade, Tighe & Bond has gathered and reported data on water and sewer rates service in Massachusetts. Using rate information that survey participants provide, we have calculated the annual average homeowner’s cost for water and sewer service based on the consumption of 90,000 gallons or 120 hundred cubic feet of water. The survey, which includes typical annual homeowner water costs for each community in Massachusetts, also provides information regarding rate structures and billing cycles. Tighe & Bond’s water and sewer rate surveys offer municipalities and private suppliers a benchmarking tool for comparing their rates against other suppliers in the state. This can be particularly useful information when suppliers are considering adjustments to their current rates or rate structures.  The survey results are available to the public online at rates.tighebond.com. Founded in 1911, Tighe & Bond provides engineering and environmental services for clients in the government, industry, healthcare, education, real-estate, energy, and water/wastewater markets.

Massachusetts Economy Expected to Keep Growing
BOSTON — The Massachusetts economy is expected to grow slowly before accelerating in early 2014, benefiting from a boost in manufacturing, according to an economic forecast issued by a group of regional economists. According to the Boston Globe, although Massachusetts is in the midst of a slowdown in hiring, the five-year forecast by the New England Economic Partnership shows the state’s economy adding jobs at a significant pace beginning next year. Employers are expected to add about 30,000 jobs this year, and more than double that number in 2015. The state’s unemployment rate, 6.4% in April, is expected to decline to 5.2% by the end of 2017, the report said. Consumer confidence is getting a boost from improvements in the job market, stock market, and housing market. On the latter front, Massachusetts home prices were up by 5.3% in February from a year earlier, while residential building permits increased 24%. The forecast predicted continued improvement in housing and more jobs in construction. Manufacturing, which has experienced large job losses in recent decades, is expected to expand over the next few years because of global demand for advanced products made regionally, including medical devices, specialized materials, and semiconductors. Meanwhile, the report by the New England Economic Partnership raised questions about whether there will be enough skilled workers in the state to meet employers’ demands as Baby Boomers retire and leave the workforce. As many as 100,000 job vacancies in the manufacturing sector across New England will be created by retirements, the report said, but there may not be enough student interest in vocational education to fill those jobs or enough capacity in the educational system to train so many workers.

Unemployment Persists in Springfield, Regionwide
SPRINGFIELD — The city’s unemployment rate was 10.7% in April, the same as it was in March but higher than the 9.8% unemployment rate recorded a year ago. As a region, Greater Springfield had an unemployment rate of 7.5% in April, down from 8% in March, but again higher than the 7.2% rate recorded in April 2012, according to statistics from the state Executive Office of Labor and Workforce Development and the federal Bureau of Labor Statistics. According to state employment numbers figured by using a survey of businesses, Greater Springfield added 5,200 jobs in from March to April. But the region is still down 2,200 jobs, or about 0.8%, on the year. Statewide, jobs are up 48,100 on the year for a 1.5% increase. The state added 45,200 jobs in April, an increase of about 1.4%. Statewide unemployment was 6.3 percent, unadjusted for seasonal changes in the state economy. Adjusted for seasonal changes, Massachusetts’ total unemployment rate remained unchanged at 6.4%, lower than the national average of 7.5%. However, when people who have stopped looking for work and those working part-time who would rather be working full-time are added to the calculation, Massachusetts’ unemployment rate rises to an average of 12.8% over the last six months, according to the federal Bureau of Labor Statistics.

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Grants Awarded for Municipal Water Projects
BOSTON — The Mass. Water Pollution Abatement Trust (MWPAT) announced the approval of more than $6 million in need-based principal-forgiveness grants on 20 water infrastructure loans from across the state. “This money will deliver relief to communities struggling to finance key water projects that provide for the health and well-being of their citizens,” said state Treasurer Steven Grossman, who serves as the chairman of the MWPAT. “This funding frees up additional capital to go to other important local priorities, such as transportation infrastructure, education, and public safety.” The 20 grants, administered by the state and funded by the federal government, were awarded on a competitive basis to cities and towns most in need of financial assistance associated with loan payments to the MWPAT. Because of the reduction of loan principal funded by the grants, impacted communities will see their biannual loan payments reduced, freeing up capital for other local needs. The loans were originated to pay for municipal water projects such as upgrades to water-treatment facilities and stormwater and sewer improvement projects. “As Governor Patrick has so clearly pointed out, the Commonwealth has a significant and expensive backlog of water infrastructure projects to address in order to fully protect the environment and the public health,” said Commissioner Kenneth Kimmell of the Mass. Department of Environmental Protection, who serves on the MWPAT board. “I am pleased to join our trust partners to provide this assistance to these communities to make their projects more affordable.” The $6 million in loan forgiveness is associated with a total original loan amount of $98 million, an overall principal reduction of 6%. “As the executive director of the trust, I am excited to announce $6 million in principal forgiveness to these communities that have shown a strong commitment to improving their water infrastructure,” said Sue Perez. “This award represents our third year providing principal forgiveness, and to date we have awarded roughly $33 million in principal forgiveness under this program.” The MWPAT lends financial assistance to the Commonwealth under the State Revolving Fund program by providing subsidized loans to cities and towns for water-infrastructure development. Since its establishment in 1989, the trust has loaned approximately $6 billion to improve and maintain the quality of water in the Commonwealth. An estimated 97% of Massachusetts’ citizens have benefited from the MWPAT’s financial assistance.

Massachusetts Economy Shows Positive Signs
BOSTON — After a period of lackluster economic growth, the Massachusetts economy sprang to life in the first three months of this year as hiring increased, incomes rose, and consumer spending rebounded, according to a new report by the University of Massachusetts and the Federal Reserve Bank of Boston. The state’s economy grew at an annual rate of 3.9% between January and March, accelerating from 2.4% at the end of last year and outpacing the national economic growth rate of 2.5% during the three-month period. The state has recovered from the Great Recession faster than the nation as a whole, regaining as of January all the jobs lost in the downturn even as U.S. employment remains millions of jobs below the pre-recession peak. That has helped boost incomes here, which have been further supported by the strong stock market and rising home values, leading to stronger consumer spending. In fact, spending on discretionary purchases, including TVs, furniture, appliances, and motor vehicles, grew at an annual rate of 11.6%. The Massachusetts economy seems to have responded to the resolution of November’s elections and the ensuing budget battles and ‘fiscal cliff,’ but the UMass report noted that risks to the economy remain. Specifically, Massachusetts is particularly vulnerable to across-the-board sequestration cuts because the state receives billions annually in federal defense and research spending. The spending cuts, which took effect in March, have already led to slower hiring in many of the state’s key industries, including healthcare, higher education, and research and development.

Three Local Agencies Benefit from MMS Grants
WALTHAM — Three agencies in Western Mass. Are among 12 to receive grants from the Mass. Medical Society & Alliance Charitable Foundation as part of its 2013 allocations. The 12 grants total $160,000 and will help to support health and medical services that address vision care, healthy lifestyles, asthma reduction, prevention and screening services, and primary care for the uninsured. Eight agencies are receiving grants for the first time, while four have previously been awarded grants from the foundation. Community Health Programs of Great Barrington was awarded $35,000 to outfit a medical van with equipment to provide a mobile ophthalmic office that will offer patients of all ages comprehensive screening, diagnosis, and treatment for  eye diseases. The van will focus care on populations that are disadvantaged due to mobility, health, or economic reasons. The agency serves people throughout Berkshire County. Amherst Survival Center Free Medical Clinic was awarded $15,000 to hire a part-time clinic manager to oversee expansion of the agency’s operation.  The clinic serves more than 500 individuals in Hampshire and Franklin counties. This is the second grant to the agency from the foundation; it previously received $15,000 in 2011. Greater Westfield Free Health Services received $5,000 to support free health services for residents in the Westfield area who are uninsured or underinsured. Other recipients in Massachusetts include Heywood Hospital, Gardner, $20,000; UMass Memorial Medical Center, Worcester, $15,000; Girls Inc., Worcester, $10,000; Metro West Free Medical Program, Sudbury, $10,000; Children’s Health Care and Nutritional Goals through Education, Shrewsbury, $10,000; Restoring Sight International, West Roxbury, $15,000; the Family Van Program, Roxbury, $10,000; Upham’s Corner Health Center, Dorchester, $10,000; and the Sharewood Project, Malden, $5,000. The foundation is a supporting organization of the Mass. Medical Society, the statewide association of physicians, and the MMS Alliance is the organization of physicians’ spouses committed to promoting good health among the citizens of Massachusetts. The foundation’s mission is to support the charitable and educational activities of the society and alliance and address issues affecting the health, benefit, and welfare of the community.

Springfield Museums Receives Prestigious Accreditation
SPRINGFIELD — The Springfield Museums recently announced that, after a two-year process, the nonprofit organization has received prestigious accreditation by the American Alliance of Museums (AAM), the highest national recognition for a museum or museum consortium. Of the nation’s estimated 17,500 museums, only about 1,000 (or 6%) are currently accredited. Accreditation places the Springfield Museums in the same class as institutions like the Smithsonian, the American Museum of Natural History, the Museum of Fine Art in Boston, and the Clark Art Institute in Williamstown. To be accredited signifies a museum meets or exceeds the standards and best practices of the museum field in all aspects of its operation — collections stewardship, community engagement, financial stability, governance, and security. Accreditation is often a prerequisite for, or integral to, loans of objects from other museums nationally and internationally, funding from many philanthropies and foundations, and support from local, municipal, and state government. Longtime private donors, elected officials, and museums staff and board members joined in a celebratory announcement at the Michele & Donald D’Amour Museum of Fine Arts. According to Holly Smith-Bove, museums president, the museums draw a quarter-million visitors each year and add an estimated $28 million per year in tourism dollars into the region. The campus off State and Chestnut streets includes the Museum of Fine Arts, the George Walter Vincent Smith Art Museum, the Springfield Science Museum, the Connecticut Valley Historical Museum, the Museum of Springfield History, and the Dr. Seuss National Memorial Sculpture Garden. Accredited museums encompass the breadth of America’s museums that celebrate and display all forms of art, history, historic sites, natural history, science and technology centers, public and botanic gardens, zoos, and aquariums.

Construction Industry Loses 6,000 Jobs in April
The U.S. construction industry lost 6,000 jobs in April, according to the May 3 employment report by the U.S. Department of Labor, but the unemployment rate decreased to 13.2%, down from 14.7% in March and 14.5% in April 2012. Year over year, the construction industry has added 154,000 jobs, or 1.7%. The decline in unemployment is likely due to seasonality rather than meaningful improvement in underlying construction labor market conditions. The non-residential building sector lost 4,800 jobs for the month, but has added 17,700, or 2.7%, over the last year. The residential building sector added 6,200 jobs in April and has added 14,400 jobs, or 2.5%, year over year. Non-residential specialty trade contractor employment fell by 11,100 jobs in April compared to March, but is still up by 39,000 jobs, or 1.9%, compared to the same time last year. Residential specialty trade contractors added 7,100 jobs for the month and have added 69,300 jobs, or 4.7%, since April 2012. Heavy and civil engineering construction employment slipped by 3,800 jobs in April, but is up by 13,400 jobs, or 1.5%, over the last 12 months. Across all industries, the nation added 165,000 jobs, with the private sector expanding by 176,000 jobs and the public sector shrinking by 11,000 jobs. According to the Bureau of Labor Statistics’ household survey, the national unemployment rate fell to 7.5% in April, down from 7.6% in March. “Today’s report highlights the fact that different forms of economic activity require different levels of confidence,” said ABC Chief Economist Anirban Basu. “Leading the way in job creation in April were segments such as leisure/hospitality and retail trade. It doesn’t take that much confidence to take a short cruise or eat at a restaurant; however, it takes a considerable level of confidence to move forward with a significant construction project, and that level of confidence is still lacking. “The recent construction spending report issued by the U.S. Census Bureau showed that both public and private nonresidential construction were down for the month, indicating that sustained momentum continues to elude the industry.” Today’s employment report reinforces the notion that sustained recovery remains elusive,” Basu said. “While non-residential construction employment is up by nearly 56,700 jobs on a year-over-year basis, the segment shed 15,900 positions in April. Further declines are possible in the near term given weak construction spending dynamics and the anticipated impacts of sequestration on construction starts.”

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DevelopSpringfield Acquires Historic Property
SPRINGFIELD — DevelopSpringfield recently acquired a deteriorating historic property at 83 Maple St. in Springfield for rehabilitation in keeping with its historic significance.  A property to the rear at 234 Union St. was also acquired and will be developed as a part of the project. The Greek revival-style home was originally built in 1841 for Solymon Merrick, the inventor of the monkey wrench. It has been considered an important component of a group of 19th-century buildings located at the corner of Union and Maple streets. Later it was owned by Ansel Phelps, the fourth mayor of Springfield, and was commonly known as the Ansel Phelps House. The property has been included on the Springfield Preservation Trust list of endangered historic properties of Springfield, which highlights 10 threatened properties of architectural and historical significance. The house has fallen into disrepair and will require significant stabilization in preparation for restoration and reuse. The goal of DevelopSpringfield with this project is to eliminate a blight on the neighborhood while saving an important historic property and to ensure its rehabilitation to an appropriate use. “Our first priority is to stabilize the exterior of the building by repairing or replacing windows, porches, and pillars and taking other steps to prevent further deterioration, and to improve the physical appearance of the property,” said Jay Minkarah, president and CEO of DevelopSpringfield. The organization plans to work closely with the Springfield Preservation Trust, the Historic District Commission, and the city’s Planning and Economic Development Department regarding redevelopment of the site to ensure that restoration and reuse plans are consistent with city and neighborhood goals and compatible with surrounding uses. The Springfield Preservation Trust owns the buildings at 77 Maple St., offering an opportunity for collaboration. “This is a property of great importance historically, and it is located on a major gateway to downtown. It cannot be lost to disrepair,” Minkarah added. “Once restored, however, it will become a tremendous asset once again for our city.”

Labor Report Mixed Across Commonwealth
BOSTON — The Executive Office of Labor and Workforce Development recently reported that, according to the Bureau of Labor Statistics, seasonally unadjusted unemployment rates for March were down in eight areas, up in seven areas, and unchanged in seven areas over the month.  Over the year, the rates were down in 14 areas, up in five areas, and unchanged in three areas. Statewide, the seasonally unadjusted unemployment rate remained unchanged over the month at 6.8% and 11,300 jobs were added in March. Over the year, the statewide unadjusted rate edged down by 0.1% from the 6.9% rate posted for March 2012, and Massachusetts added 32,400 jobs. In March 2013, over-the-month job gains occurred in 11 of the 12 areas, the largest of which were in the Boston-Cambridge-Quincy, Worcester, Barnstable, Springfield, and Framingham areas. The Leominster-Fitchburg-Gardner was the only area to record a job loss. Over the year, eight of the 12 areas added jobs, with the largest-percentage gains in the Barnstable, Haverhill-North Andover-Amesbury, and Peabody areas. The seasonally adjusted statewide March unemployment rate, released on April 18, was 6.4%, down 0.1% over the month and down 0.2% from the 6.6% rate recorded in March 2012. The statewide seasonally adjusted jobs estimate showed a 5,500 job loss in March following a loss of 800 jobs in February. Unadjusted unemployment rates and job estimates for the labor-market areas reflect seasonal fluctuations and therefore may show different levels and trends than the statewide seasonally adjusted estimates.

Home Sales Down, Prices Up in March
BOSTON — Massachusetts home sales slowed in March while prices kept going up, prompted by a shortage of properties on the market. Statewide, 3,100 single-family homes were bought in March, a 3.6% decline compared with the same time in 2012, according to Warren Group, a Boston company that tracks real estate. For the first three months of the year, sales fell 2.1% to 7,849, compared with the first quarter last year. Condominium sales also dropped off in March, by 2% to 1,211. Sales for the first quarter declined about 1%, compared with the first three months of 2012. At the same time, buyers were having to pay more. The median price for a single-family house rose to $285,000 in March, 8% higher than during that month last year. During the first quarter, the median value of a home swelled by 10.6% to $282,500, compared with the first three months of 2012, according to the Warren Group. Condo prices rose less dramatically to $261,000 in March, by 1.5%. For the first three months of 2013, the median price of a condo hit $250,000, a 1.6% increase from the year-earlier period. The data suggest that there are not enough homes for sale to meet the demand of buyers, who are motivated by low interest rates, rising prices, and an improving economy. The inventory of single-family homes eroded by 29.8% in March, compared with March 2012, marking the 12th consecutive month of decreases, according to the Massachusetts Assoc. of Realtors. Inventory for condos fell 34% in March, compared with that month in 2012. “Low inventory is plaguing housing markets all over the country, and Massachusetts is no exception,’’ said David Harris, editorial director of the Warren Group. “There is definitely concern that such steep price spikes will cause an affordability issue.” Meanwhile, Kimberly Allard-Moccia, broker-owner of Century 21 Professionals in Braintree and president of the Mass. Assoc. of Realtors, said she is happy that so many people are interested in buying a home, but she wishes more sellers would embrace that optimism about the housing market and list their properties. “A good supply of homes for sale is the only thing we’re missing from a sustainable housing recovery,’’ she said.

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Volunteers to Renovate 25 Houses in One Day
SPRINGFIELD — The Springfield affiliate of Rebuilding Together has announced that a unique ‘cluster rebuild’ of 25 homes, all on contiguous streets in the Old Hill neighborhood of Springfield, will take place April 27, which is the organization’s National Rebuilding Day. The homes will be renovated with an eye on improved health and energy efficiency. About 1,000 volunteers will pour onto Tyler and Quincy streets to assist in the renovations, which will include a conversion from oil heat to natural gas, with street hookups included as an in-kind donation by Columbia Gas, as well as new and proper insulation of all homes and apartments. Other work to be undertaken includes new roofs, energy-efficient windows and doors, proper ventilation, painting, age-in-place modifications, electrical and plumbing repairs, CO2 and smoke detectors, deadbolt locks, vinyl siding and ramps, and outdoor work including yard cleanup, fencing, landscaping, and shrub and flower planting. Improvements will also be made to the neighborhood as a whole, including the fixup of a neighborhood playground, the creation of a community garden for growing fresh fruit and vegetables, improvements to the Old Hill Neighborhood Council office at Eastern Avenue and Quincy Street, and improvements to the Masonic Lodge on Tyler Street. TD Bank will sponsor a cookout on Tyler Street at the end of the day. Many of the families benefiting from the renovations have seen their share of hardship; one of the residences is Oscar and Carol Granado’s home at 163 Tyler St., where they have lived for 32 years and raised a family. Carol was diagnosed with breast cancer in 2012, and Oscar is still working at age 72 to pay for health insurance to cover her medical costs. Donors and event sponsors are pitching in to get the Granados a new roof; electrical, carpentry, and plumbing repairs; mold removal; and an exterior facelift. “It’s great to see everybody happy,” Carol said of the neighborhood excitement surrounding the cluster rebuild. “Everyone is having things done that they can’t afford to get done, or can’t do themselves. We will never forget this day.” Rebuilding Together Springfield is in its 21st year of existence and completed the rebuilding of 71 homes in Springfield in the past year, with help from some 5,000 volunteers.

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State Approves Projects Aimed at Boosting Jobs

BOSTON — The state Economic Assistance Coordinating Council (EACC) recently approved nine projects for participation in the Economic Development Incentive Program (EDIP), which are expected to create 1,209 new jobs and retain 5,935 existing jobs, in addition to leveraging nearly $267 million in private investment and supporting construction projects across the Commonwealth. Among the eight approved projects are four manufacturing companies and five projects located in Gateway Cities. The EDIP program helps reduce the cost of business for these companies, which is one of the five main focuses of the Patrick-Murray administration’s long-term economic-development plan. These are the first projects approved in 2013 by the Coordinating Council, which meets on a quarterly basis to review applications. “Supporting companies that are choosing to grow in Massachusetts is an important part of our effort to create economic opportunity for everyone,” said Secretary of Housing and Economic Development Greg Bialecki. “These investments will help these businesses expand here and fit with our overall economic-development strategy of making our businesses and communities stronger in the long term.” Two of the projects are based in Western Mass., at MassMutual in Springfield and Crane & Co. in Dalton. Last fall, MassMutual purchased the retirement plan portfolio of the Hartford Insurance Co., and will be moving back-office jobs from Connecticut to Springfield. The expansion at the Springfield facility will create 250 jobs while retaining 3,352 existing jobs. This project represents a private investment by the company of $59.4 million. The EACC has approved $3.75 million in EDIP investment tax credits (ITCs) to support MassMutual’s efforts and investments. Meanwhile, Crane & Co. is a seventh-generation, family-owned paper manufacturer that acquired a Kennebunk, Maine, company, William Arthur Inc., in late 2012. Crane & Co. will incorporate the Maine operations into its existing stationary operations located in North Adams. This project represents an investment of $5 million and will create 74 new jobs in Massachusetts while retaining 206. North Adams has awarded Crane a five-year special tax assessment valued at $291,030.

 

Sarno Argues Against Law That Limits Casino Tax Revenues

BOSTON — Springfield Mayor Domenic Sarno recently asked state lawmakers to approve legislation that would exempt a proposed casino’s land from the state’s tax-limiting law, allowing Springfield to collect an additional $15 to $20 million in annual property taxes. Sarno and his aides met with the chief of staff for House Speaker Robert DeLeo and Sen. Stephen Brewer, chairman of the Senate Ways and Means Committee. Sarno also testified on the bill before the Legislature’s Joint Committee on Revenue. Under Proposition 2 ½, Springfield cannot collect property taxes from ‘new growth,’ Sarno noted. “The Legislature has provided for a potentially huge economic driver in our city in the form of a casino,” he told members of the committee. “We all know that the benefits of a casino are still a few years away, but if we are lucky enough to have one, our benefits are even further away than you think due to the constraints of Proposition 2 ½ and its rules around how new growth is calculated.” Sarno is currently negotiating with two casino companies that are each proposing estimated $800 million casino resorts for Springfield. MGM Resorts International is planning a casino in the South End, and Penn National Gaming is planning a casino in the North End.

 

Springfield Wins $21.9M for Disaster Recovery

SPRINGFIELD — The U.S. Department of Housing and Urban Development (HUD) recently announced that it is allocating $21.9 million to the Springfield to aid its recovery from weather disasters in 2011.
The funding is in response to the June 1 tornado that swept through Springfield and surrounding communities, as well as Hurricane Irene, which brought flooding to many communities two months later; both events were declared federal disasters.
The funds are part of $514 million allocated among nine states nationwide through HUD’s Community Development Block Grant program.
“In the last two years, many communities have had to deal with the reality of our changing climate and the increasing severity of natural disasters,” said Shaun Donovan, HUD secretary. “HUD is continuing to work closely with state and local partners to help them realize a locally driven vision for restoring and rebuilding housing, infrastructure, and businesses that have been affected.”

 

Springfield Unemployment Declines in February

SPRINGFIELD — The city’s unemployment rate fell in February to 10.6% from 11.7% in January. Springfield’s unemployment rate was 11.4% a year ago in February 2012, according to figures from the state Executive Office of Labor and Workforce Development and the federal Bureau of Labor Statistics. As a region, Greater Springfield’s unemployment rate was 8% in February, down from 8.8% the previous month and 8.5% a year ago in February 2012. At the same time, the number of employed Springfield residents rose from 57,039 in January to 57,566 in February. The numbers are not adjusted for seasonal changes in the economy, and unemployment rates typically spike in January as holiday-season jobs end before spring construction jobs begin. The statewide unadjusted unemployment rate was 6.8% in February. Adjusted for inflation, the unemployment rate was 6.5%. The national average, adjusted for seasonality, was 7.7% in February. Meanwhile, Massachusetts has surpassed pre-recession job levels statewide. Revised numbers from the Bureau of Labor Statistics showed 3,318,500 jobs in February, compared to 3,304,300 in April 2008.

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Mass. Career Development Institute to Close Sept. 1
SPRINGFIELD — The Mass. Career Development Institute (MCDI) has announced it will close this fall. In a statement, MCDI Executive Director Timothy Sneed said the agency is currently working to “transition its remaining programs to other community providers” and that the center will close on September 1. In addition to the “steadily declining” funding, Sneed said that “job-training programs that were once unique to MCDI are being duplicated in other places in the community.” MCDI has an annual budget of $2.7 million, of which 41% of funding comes from federal sources and 39% from the state. There are about 250 students currently enrolled in MCDI programs. Those students currently enrolled will be able to complete their training by the end of the academic year this spring. The center’s English for Speakers of Other Languages (ESOL) program will be available until Sept. 1. “The good news,” Sneed said, “is that no one in our community will be without the services, as our core programming, such as nurses-aide training, is available in the community-college system or the vocational education system.” Regarding the 29 people who will lose their jobs because of the closure, Sneed said, “our hope is that, by announcing our plans well in advance of the closing of all operations in September, these workers will have ample time to be absorbed into the workforce where their skills in job training can be utilized.” Founded in 1970, MCDI was created to raise educational-attainment levels and develop workforce skills for individuals as part of a comprehensive program. The goal was to graduate participants into the economy through employment, where they could advance their own economic prospects while contributing to the area’s economic development.

Construction Spending Declines in January
WASHINGTON, D.C. — Construction spending snapped a nine-month string of monthly gains with a sharp decline in January but still rose from year-ago levels, according to an analysis of new Census Bureau data by the Associated General Contractors of America.  Association officials cautioned that across-the-board federal spending cuts known as sequestration, which took on March 1, along with a possible shutdown of the federal government later in March, could hit construction harder than most sectors and dampen demand for needed projects. “At first glance, January was a bad month for construction, with a sharp drop in private non-residential spending, along with small dips in residential and public construction,” said Ken Simonson, the association’s chief economist.  “However, the January figure was higher than the year-ago level. Moreover, steep upward revisions … in the preliminary numbers for November and December suggest January may ultimately prove to have been positive as well.” Construction put in place totaled $883 billion in January, down 2.1% from the December total, which was marked up from an initial estimate of $885 billion to $903 billion on the basis of new data on power and energy construction. The January 2013 total was 7.1% higher than in January 2012. Private residential construction spending was flat for the month and up 22 percent year-over-year. Private nonresidential spending slumped 5.1% for the month but climbed 4.0% year over year. Public construction spending dropped 1.0% for the month and 3.0% over 12 months. “Once more complete data is available, power construction should prove to be a strong category in 2013, along with manufacturing, multifamily, and — at least in the first half of the year — single-family construction,” Simonson said. “But public construction, which has declined year over year for 28 straight months, appears to be headed still lower.” As for sequestration and its aftermath, association analysis suggests that an estimated $4 billion worth of federal construction projects will be cancelled this year alone. “These indiscriminate cuts run the risk of undermining the fragile recovery in demand many contractors are just now beginning to experience,” said Stephen Sandherr, the association’s chief executive officer. “It is hard to encourage major new private sector investments in capital projects when Washington can’t even find a way to avoid fiscal crises of its own making.”

MIT Urges Growth of ‘Industrial Ecosystem’
BOSTON — A new report by the Massachusetts Institute of Technology urgently recommends that the nation rebuild its “industrial ecosystem” of manufacturers, suppliers, research, and skilled labor to support multiple industries, not just clusters of companies dedicated to one particular sector. The report claims that manufacturers with the ability and talent to produce the ideas of entrepreneurs are in increasingly short supply, as U.S. corporations have shifted production offshore and outstourced many other functions, such as research and development, over the last 30 years. “Across the entire industrial landscape, there are now gaping holes and missing pieces,” the report says. “It’s not just that factories stand empty and crumbling; it’s that critical strengths and capabilities have disappeared that once served to bring new enterprises to life.” The report, compiled by 20 MIT faculty members notes that, for innovation and the invention and creation of new products to occur, startup companies and manufacturers must operate close by so that they may draw on each other’s expertise. The MIT task force studied more than 250 companies in several states to better understand how to improve the nation’s ability to manufacture and benefit from products invented, designed, and brought to market by American entrepreneurs and engineers. The U.S. has lost about one-third of the manufacturing jobs it had more than a decade ago. About 30 years ago, the report says, American corporations began shedding large-scale research and development and manufacturing operations, realizing that leaner operations drove their stock prices higher. Increasingly, cutting-edge research and innovation is instead taking place in universities, startups, and government labs, which face challenges moving ideas to commercial production. “The anxieties of the public connected with many of our own deep concerns at MIT about where the American economy is heading,” the report says. “Our question was: what kinds of production do we need — and where do they need to be located — to sustain an innovative economy?”

Life Sciences to Benefit from $9M in Grants
HOLYOKE — During a recent visit to Holyoke Community College (HCC), Gov. Deval Patrick announced more than $9 million in grants for capital projects related to life sciences in Western Mass. He said the grants, paid for with money from the sale of state bonds, fit in with his current budget and its emphasis on spending on infrastructure and especially on education. An educated workforce, he noted, “is as important to us as oil is to Texas and corn is to Iowa.” The grants include $3.8 million to Holyoke Community College for the creation of the Center for Life Sciences in the Marieb Building, in space to be vacated by moving nursing and radiology programs to the former Grynn & Barrett photo studio building the college recently purchased. The grant is the largest received in the institution’s history, said HCC President William Messner. In addition, the Massachusetts Green High Performance Computing Center in Holyoke will receive $4.54 million for life-sciences work. Bay Path College in Longmeadow will receive a $50,000 planning grant, and Springfield Technical Community College will reap $150,000 in planning-grant money. Industries included in life sciences include pharmaceuticals, medical devices, research, and bio-informatics, or the study of complex data in the field of biology. Through the Massachusetts Life Sciences Center, the Commonwealth is investing $1 billion over 10 years in the growth of the state’s life-sciences industry. These investments are being made under the Massachusetts Life Sciences Initiative, signed into law by Patrick in 2008. The governor also announced smaller grants for vocational and technical high schools and high schools in Gateway Cities in Western Mass.: Dean Technical High School and Holyoke High School with $195,000, Roger L. Putnam Vocational Technical Academy with $100,000, Smith Vocational and Agricultural High School with $100,000, Taconic High School in Pittsfield with $88,000, and Westfield High School with $44,333. With the money, high schools will be able to invest in renovated labs and the latest equipment.

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Mohegan Sun Taps Partner for Casino Project

PALMER — Mohegan Sun has announced a strategic partnership with Brigade Capital Management on its project to build a destination resort casino in Palmer. The agreement with Brigade — a $12 billion New York-based investment advisor — coincides with Mohegan Sun’s formal application for a casino license to the Mass. Gaming Commission.
“This is an important day for Mohegan Sun, for Western Mass., and the entire Commonwealth. Today, we take the next critical step in fulfilling our commitment to bringing new jobs and economic growth to the region,” said Bruce “Two Dogs” Bozsum, chairman of the Mohegan Tribal Council. “It’s our intent to be the first casino to open its doors in Massachusetts.”
Added Mohegan Tribal Gaming Authority CEO Mitchell Etess, “Brigade Capital Management will be a great partner and important asset to this project. They are experienced as institutional investment partners on gaming projects in several states across the U.S., and understand the business that Mohegan Sun has been successful in for 16 years.” Through this agreement, Brigade will invest capital into the corporate entity that is being established to develop Mohegan Sun’s project in Western Mass. “Mohegan Sun is one of the most recognized casino gaming brands in the U.S., and they embody the proven model of success for gaming in New England,” said Don Morgan, managing member of Brigade. “This project will be built at the best location for a casino in Massachusetts, by a team with combined experience in multiple licensing jurisdictions, and managed by one of the premier gaming operators in the U.S. We are excited to be a partner in this endeavor and to have a role in establishing the Massachusetts casino gaming industry.”
Mohegan Sun is planning a world-class destination casino resort in Palmer that promises to create thousands of jobs and bring economic growth to Western Mass. Mohegan Sun established a storefront office in Palmer more than three years ago, and has conducted outreach to thousands of area residents through its Community Conversations series, appearances at other community meetings, a Mohegan Sun in Palmer newsletter and social-media outreach. Mohegan Sun is also far along in discussions with Palmer officials on a host community agreement, which is required under the Massachusetts casino-gaming legislation.
“Our project has distinct and unique advantages with regard to location, access, and infrastructure. Its rural setting on 150 acres — adjacent to other large parcels that present ancillary development possibilities — is ideal for creating the type of gaming facility that New England patrons are familiar with and have made successful over the past two decades,” Etess said. “Moreover, our host community of Palmer has been welcoming, motivated, and supportive. The community is excited about the jobs and economic development that Mohegan Sun will bring to the entire region.”

 

MGHPCC Awards $500,000

in Grants for Research

HOLYOKE — The Massachusetts Green High Performance Computing Center (MGHPCC) has announced $500,000 in seed grants to six multi-university teams to support cross-institutional research among MGHPCC members.
The MGHPCC, which opened in November, is intended to promote research collaboration among the participating universities — Boston University, Harvard University, the Massachusetts Institute of Technology, Northeastern University, and UMass — through high-performance computing, a pillar of major scientific research today. The seed grant program is intended to accelerate the MGHPCC’s mission of computational collaboration. This is the second round of seed grants awarded by the MGHPCC Consortium, and it brings the total amount of awards to $1.1 million. The six winners were chosen from a field of 26 applications by a committee of researchers from the participating universities. The funded projects are: “The CaterPillar Project: Exploring the Dark Matter Substructure of Milky Way Galaxies”; “Designing Cloud and Big Data Platforms for Scientific and HPC Applications”; “Strength and Fracture Mechanisms of Hierarchical Biological Materials”; “Computational Identification of Outcome-Associated DNA Alterations in Neuroblastoma”; “Genome-Scale Characterization of Chromosonal Aberrations Using Parallelizable Compression Algorithms”; and “Automated Segmentation of Vessel Network Structures in Large Image Stack Sets.” The grant amounts ranged from $52,000 to $131,000. The request for proposals sought “novel collaborative researchactivities addressing significant and challenging problems at the forefront of high-performance technical computing.” Proposals also had to include a strategy for followup research that would attract external funding.
“This year’s awards span basic astrophysics research, computer-systems innovation, and real-time clinical application, and highlight the richness of the region as a world leading center of gravity for academic discovery,” said Chris Hill, an MIT researcher who served on the committee.

 

MassDOT Releases

Transportation Plan

BOSTON — The Board of the Mass. Department of Transportation (MassDOT) and Transportation Secretary and CEO Richard Davey have announced a plan for the next generation of transportation investment in the Commonwealth. The plan includes passenger-rail service connect Boston and Springfield, commonly known as the “Inland Route,” and the rehabilitation of infrastructure to support rail service between Pittsfield and New York City. A $362.4 million investment to fund the Inland Route will cover rehabilitation along the route, creating a second track, widening bridges, upgrading signals purchasing train equipment, and constructing or rehabilitating stations. This will also support future high-speed rail connection to New York City via Springfield. Another $113.8 million in funding for rail service between the Berkshires and New York City will include rehabilitation of track, signals, and structures between Pittsfield and the Massachusetts-Connecticut state line to support future rail service between Pittsfield and New York City. The current line is served by freight carriers and is not up to standards necessary for commuter service. The plan also includes a $32.2 million increase to the Pioneer Valley Transit Authority in fiscal year 2014, a $3.2 million increase to the Berkshire Regional Transit Authority (BRTA), and a $1 million increase to the Franklin Regional Transit Authority (FRTA). The PVTA is receiving the largest increase of all regional transit authorities in the state. Additional Western Mass. investments in the plan, including funding for the 1-91 Viaduct in Springfield, reconstruction of Route 2 in Erving Center, and investments in the Mohawk bike and pedestrian trail in North Adams and the Skyline Trail in Hinsdale, promise to further ensure regional transportation equity, create jobs, and expand economic opportunity.  “We have parts of this Commonwealth whose opportunities are constrained by substandard service and lack of access. Our plan outlines increased investments in passenger rail in Western Mass. and regional transit authorities to unlock opportunities across the board,” said Gov. Deval Patrick. “Improving our transportation system is key to meeting our economic potential, for Western Mass. and every region of the Commonwealth.”

 

Hospitals Request Response to Community Health Survey

PIONEER VALLEY — The Coalition of Western Massachusetts Hospitals is conducting a community-health-needs assessment to identify and address the most pressing public health needs in the Pioneer Valley. Community members are encouraged to participate in this process by taking the Community Health Survey. The link to the survey can be found on the participating hospitals’ websites and at www.surveymonkey.com/s/masschna.
The coalition is a partnership between eight area tax-exempt hospitals: Baystate Medical Center, Baystate Franklin Medical Center, Baystate Mary Lane Hospital, Cooley Dickinson Hospital, Holyoke Medical Center, Mercy Medical Center, Shriners Hospitals for Children – Springfield, and Wing Memorial Hospital and Medical Centers. The survey is currently available online in English and Spanish and will soon be available in Russian and Vietnamese (paper copy only).
The coalition began meeting to plan the process for this community-health-needs assessment in August, and is scheduled to have reports finalized by this spring. Its goal is to identify the health and safety assets of area communities and also to determine the potential concerns they face. They will do so by asking residents for their opinions about these issues, services presently available, their satisfaction with these services, and identification of others programs that may be needed. The survey should take no more than 15 minutes to complete and will be available through Feb. 15. Survey respondents will be identifiable only by ZIP code, and all individual responses will be kept confidential.
All survey respondents will have the option to enter a drawing for an iPad Mini and several gift cards. Personal contact information entered for drawing registration will be kept confidential and used solely for the purpose of this drawing and not for any marketing purposes.

 

Chamber Seeks Input for

2013 Woman of the Year

SPRINGFIELD — The Professional Women’s Chamber, a division of the Affiliated Chambers of Commerce of Greater Springfield, is seeking nominations for the 2013 Woman of the Year Award. This award has been presented annually since 1954 to a woman in the Western Mass. area who exemplifies outstanding leadership, professional accomplishment, and service to the community. The nominee’s achievements can be representative of a lifetime’s work or for more recent successes. Any woman in the Pioneer Valley is eligible for nomination, and a chamber affiliation is not required. A Woman of the Year nomination form may be obtained online at www.professionalwomenschamber.com or by emailing Nancy Mirkin, committee chair, at [email protected]. Nomination documents are due by Feb. 15.

 

Consortium Plans Program

to Train Casino Workers

SPRINGFIELD — In an effort to prepare local residents for future casino jobs, a consortium of community colleges from across the state, led by Springfield Technical Community College and Holyoke Community College (HCC), recently signed worker-training agreements with four prospective casino developers. The group, called the Community College Casino Careers Training Institute, gives casino developers a single point of contact to help develop their workforce. William Messner, president of HCC, said the consortium hopes to have a training program up and running sometime in 2015, about one year before any of the proposed casinos would open.

 

MassINC Program Aims to

Stimulate Gateway Cities

The Gateway Cities Innovation Institute, an entity run by MassINC, is proposing a $1.7 billion public investment in Massachusetts’ Gateway Cities, which include Springfield, Holyoke, Pittsfield, and Westfield. The Gateway Cities Innovation Institute focuses on the 24 cities designated by the Massachusetts Legislature as Gateway Cities — midsize urban cities, typically former manufacturing centers — that anchor their regional economies but have had trouble attracting new growth and investment. MassINC predicts that its $1.7 million investment would stimulate at least seven projects totaling $3.4 billion of new development or reuse, which could in turn leverage nearly $7 billion in investments and create about 80,000 jobs. The money would be split between public funding and loan guarantees, tax incentives, regulatory reform, and technical assistance.

Briefcase Departments

Construction Industry Adds Jobs in December

WASHINGTON, D.C. — The nation’s construction industry gained 30,000 jobs in December despite an overall increase in the industry unemployment rate, according to the Jan. 4 employment report by the U.S. Labor Department. That is the fastest pace of construction employment growth since February 2011. Year over year, construction employment has risen by 18,000 jobs, or 0.3%.  The construction unemployment rate for December was 13.5% (not seasonally adjusted) — up from 12.2% from November, but down from 16% the same time last year. The non-residential building construction sector added 7,000 jobs in December for a total of 12,200 jobs (1.9%) added during 2012. Non-residential specialty trade contractors gained 5,600 jobs for the month, but have lost 25,000 jobs (1.2%) compared to one year ago. The residential building sector added 5,800 jobs in December, but lost 6,600 jobs (1.2%) during the past 12 months. Residential specialty trade contractors added 12,300 jobs in December and have added 36,400 jobs (2.5%) since December 2011. The heavy and civil engineering construction sector lost 700 jobs for the month, but has added 400 jobs during the course of the past year. Across all industries, the nation added 155,000 jobs as the private sector expanded by 168,000 jobs and the public sector shrunk by 13,000 jobs. According to the Bureau of Labor Statistics’ household survey, the national unemployment rate stood at 7.8% in December, the same rate as November’s revised data. “It is tempting to believe the December 2012 employment report bodes well for nation’s construction industry,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Employment growth was widespread, impacting general and specialty trade contractors alike — the largest monthly increase in construction employment in nearly two years. However, industry stakeholders will need to wait at least another month for some clarity regarding construction employment patterns.”

 

Casino Developers Spar over Picknelly

PALMER and SPRINGFIELD — Casino developers in Palmer and Springfield are sparring over which project may claim businessman Peter Picknelly, head of Peter Pan Bus Lines, who initially invested in the Mohegan Sun-backed venture in Palmer before joining Penn National Gaming in a casino proposal in the North End of Springfield. While Picknelly says he is no longer involved with the Palmer deal, his former partners say he remains legally bound to that project, and they have threatened legal action to stop Picknelly from moving forward with Penn-National in Springfield. However, the Penn National project will occupy land currently used for the Peter Pan bus terminal, and Picknelly has said he will be a 50% partner in the development. Picknelly and Penn National say he has no obligation to any other casino effort, and they have threatened a lawsuit of their own if the Palmer group interferes with Picknelly’s pursuit of a casino license in Springfield. The Penn National and Mohegan Sun projects are competing for the sole Western Mass. resort-casino license, as well as MGM Resorts, which has proposed a project in the South End of Springfield.

 

Foreclosures Down in Massachusetts

BOSTON — Fewer Massachusetts homeowners went into foreclosure and lost their properties to lenders in November. There were 295 completed foreclosures in November, a decline of almost 60% from November 2011, according to the Warren Group, a Boston company that tracks real estate. Between January and November, the number of completed foreclosures fell to 7,158, a drop of nearly 8% compared to the first 11 months of 2011. Last year is also likely to have the smallest number of completed foreclosures in the state since 2006, when the housing crisis began. “It’s been quite a positive year for the local housing market,” said Timothy Warren Jr., chief executive of the Warren Group. “An improving employment picture combined with government-backed programs are leading to fewer mortgage delinquencies.” The news added to growing sentiment that the state’s housing market is rebounding. Sales of single-family homes increased to 43,652 during the first 11 months of the year, surpassing the number of sales for all of 2011, according to the Warren Group. Lenders also initiated fewer foreclosures in November. Foreclosure starts dropped to 983, for a 3% decline from the same month in 2011.

Briefcase Departments

PVPC Issues Top 10 ‘Resolves’ for 2013

SPRINGFIELD — The Pioneer Valley Planning Commission has released its top 10 ‘resolves’ for 2014. In condensed form, these include commitments to: (1) work in concert with a broad array of partnering organizations to support, guide, and complete a regionwide economic-growth study targeted at 500 small and mid-sized Pioneer Valley firms demonstrating significant growth and job-expansion potential; (2) participate in and contribute to a statewide transportation-funding advocacy campaign and strive to ensure that the priority transportation needs and projects of the Pioneer Valley are addressed in an effective, timely, and equitable manner; (3) organize and undertake a regional effort designed to coordinate as well as provide technical assistance to potential
casino host and surrounding communities that are located within the Pioneer Valley region, working with the Mass. Gaming Commission, affected municipalities, casino developers, and other interested parties; (4) organize and launch the PVPC’s scheduled 10-year review and overhaul of the Pioneer Valley Plan for Progress; (5) continue with support provided by the Commonwealth’s District Local Technical Assistance Program to pursue
a variety of municipal shared-service initiatives and planning projects based on a regionwide solicitation process; (6) assist and support the Mass. Department of Transportation and the federal Railroad Administration as these agencies jointly launch the long-awaited ‘Inland Route’ rail-passenger-service feasibility analysis, and help to focus this study on the Boston-Worcester-Springfield east-west rail corridor and its potential to connect these cities and their surrounding areas with New York City and Montreal; (7) prepare, refine, and issue the draft and final versions of seven distinct element plans (e.g., food security, housing, climate change, etc.) which have been developed by the PVPC staff in tandem with work groups that were convened to provide advice, expertise, and feedback; (8) initiate, with 10 project partners, a two-year, $1.9 million Centers for Disease Control-funded Community Transformation Project aimed at improving the health of Springfield residents adversely affected by chronic diseases through healthy food and nutrition programs, physical activities, public-health interventions and infrastructure improvement projects, among others; (9) continue efforts undertaken over the past two years to assist PVPC communities to recover from the June 2011 tornado and pursue measures that could strengthen the level of community resilience to better address and respond to future natural and man-made disasters; and (10) work with state lawmakers and Massachusetts legislators in Washington to shape and advance policy and legislative initiatives at both the federal and state level that support and benefit
the Pioneer Valley and its member communities and residents. The complete list of resolves is available at www.pvpc.org/resources/2013%20resolves.pdf.

 

Construction Industry Loses Jobs in November

WASHINGTON, D.C. — National construction-industry employment fell by 20,000 jobs in November, pushing the sector’s unemployment rate to 12.2%, up from 11.4% the previous month, according to the Dec. 7 employment report by the U.S. Department of Labor. Year over year, construction employment is down by 6,000 jobs, or 0.1%. The non-residential building construction sector lost 4,300 jobs in November. The residential building construction sector lost 6,800 jobs for the month and has lost 15,700 jobs, or 2.8%, since November 2011. Non-residential specialty trade contractors lost 7,400 jobs for the month and have lost 16,000 jobs, or 0.8%, year over year. In contrast, residential specialty trade contractors added 3,200 jobs in November and have added 20,700 jobs, or 1.4%, compared to the same time last year. Heavy and civil-engineering construction sector employment decreased by 3,800 jobs in November, but has increased by 5,900 jobs, or 0.7%, during the past 12 months. Across all industries, the nation added 146,000 jobs as the private sector expanded by 147,000 jobs and the public sector shrunk by 1,000 jobs. The national unemployment rate decreased to 7.7% in November from 7.9% in October. “If there was any question that the construction industry continues to struggle in this economy, [this] Labor Department employment report provided the answer,” said Associated Builders and Contractors Chief Economist Anirban Basu. “In November, the economy essentially wiped out the previous gains that had been registered in the construction industry.” The other major sector to lose jobs in November was manufacturing. The fact that construction and manufacturing both lost jobs is not coincidental, Basu said, as many economic decision makers have adopted a wait-and-see attitude due to the nation’s fiscal cliff and other sources of uncertainty, including geopolitical uncertainty. “While many businesses maintain their standard daily operations, and some even add jobs in the process, larger decisions and investments are put on hold. These decisions often revolve around major investments in plants and equipment. When these types of expenditures are postponed, related industries like manufacturing and construction suffer.”

Briefcase Departments

Ameristar Withdraws from Casino Competition

SPRINGFIELD — The competition for a winning casino bid in Springfield narrowed to two late last month when Ameristar Casinos dropped plans for a $910 million resort casino on property it owns on Page Boulevard. Although Las Vegas-based Ameristar believed it had the superior proposal for a casino in Western Mass., the company concluded there is not sufficient likelihood that the basis upon which it could be awarded the license to develop and operate a casino in Springfield is favorable enough to warrant its further pursuit. Specifically, the local selection process, various project requirements, and associated costs led to the decision to reserve Ameristar’s resources for other opportunities. Ameristar has not yet made a determination concerning plans for marketing the 40-acre Page Boulevard site, which it says is the largest commercially developable site in Springfield. The site’s size, location, and ease of access to major highways make it attractive for a variety of large-scale developments in addition to a casino. “This was a difficult decision that will unfortunately result in us not being able to bring a world-class casino entertainment facility to Western Mass.” Ameristar CEO Gordon Kanofsky said. “However, I am extremely proud of the efforts of our team members who aggressively pursued this project. We are grateful for the hundreds of meaningful relationships we have built in the Pioneer Valley and the Commonwealth and for the widespread community support we received over the last year while introducing New Englanders to our company.” Mayor Domenic Sarno responded by saying, “obviously the city is very disappointed in Ameristar’s decision to withdraw from the competition to locate a world-class resort casino in Springfield. Ameristar made a strong proposal for an exciting project that would have given our voters a clear choice as to the type of location that would best serve the city. Nonetheless, I am confident that the proposals of MGM and Penn Gaming will create a robust competition resulting in a project that will … revitalize Springfield [and] create thousands of good-paying jobs for our residents and significant opportunities for our business community, with sustainable economic benefits for our great city, but also for Western Mass. and the state. We wish Ameristar the best as they continue their business and pursue other opportunities.”

 

Ludlow Mills Named Priority Project

BOSTON — Lt. Gov. Timothy Murray recently announced that Ludlow Mills, the 170-acre site planned for redevelopment by Westmass Area Development Corp., is among five new projects designated for cleanup assistance through the Patrick-Murray administration’s Brownfields Support Team (BST) Initiative. Ludlow Mills is the only project located in Western Mass. that is involved in the third round of the BST. Ludlow Mills is a mixed-use project with primary focus on commercial and industrial development. The site has environmental-cleanup needs that require further assessment and has received both state and federal grants that have provided site and environmental remediation. In responding to the announcement of the site as a brownfield support priority, Kenn Delude, Westmass president and CEO, said, “Westmass, the town of Ludlow, and our region are pleased by the lieutenant governor’s announcement to include the Ludlow Mills Preservation and Redevelopment project in the BST, and we thank Gov. Patrick and the administration and our legislative delegation for their continued support and assistance. As the largest brownfield mill-redevelopment project in New England, the Ludlow Mills project will significantly benefit from the interdisciplinary work of the BST to address complex and complicated environmental aspects of this project as we work to revitalize the site, retain and grow jobs, and improve the regional economy.” Westmass and HealthSouth recently jointly broke ground on a 74,500-square-foot, 53-bed, LEED (Leadership in Energy and Environmental Design) Silver-certified rehabilitation hospital that will offer all private rooms for patients needing rehabilitative care. The hospital is slated for completion in November 2013. Planning is also underway to develop a $20 million, 83-unit senior-housing complex on the site. Both projects will result in hundreds of construction jobs and hundreds of permanent jobs once completed. Redevelopment of the Ludlow Mills complex over the next two decades will create and retain more than 2,000 jobs and stimulate up to $300 million in private investment. The 170-acre site includes 66 buildings, offers approximately 1,450,000 square feet of space, and is bordered by 1.5 miles of riverfront. Buildout of the project will occur over 15 or more years, and the project will embrace sustainable-development principles and will seek to encourage LEED-quality new construction at the site. Launched in 2008, the BST has coordinated 24 state, local, and federal agencies over the last several years to tackle some of the state’s most complex brownfields and has helped deliver more than $18 million in funding to accelerate cleanup and streamline progress to overcome technical roadblocks.

 

Business Confidence Index Drops on Fiscal-cliff Fears

BOSTON — The Associated Industries of Massachusetts (AIM) Business Confidence Index lost 4.3 points in November to 46.8 as Massachusetts employers found themselves swept toward the ‘fiscal cliff” of drastic federal budget reductions and tax increases. “The tax increases set to take effect unless Congress acts will affect virtually every business, and the automatic spending cuts will hit hard at both defense and non-defense sectors in Massachusetts — and serious macroeconomic effects are also projected,” said Raymond Torto, global chief economist at CB Richard Ellis Group Inc. and chair of AIM’s Board of Economic Advisors (BEA). “After an election that did little to break the deadlock in Washington, we are very close to the edge. Whereas October’s results merely pointed to this concern, November’s treat an adverse outcome as a probability. In October we noted a weak reading for national conditions, while other index components held up well. The November readings are off almost across the board. The main Index dropped well below 50, into negative territory on our scale. Respondents expect conditions to deteriorate over the coming six months. And employers are losing confidence in the situations of their own companies, which we generally interpret as a reaction to rising uncertainty.” Because most survey responses were submitted shortly after the election, Torto added, they do not reflect more recent developments that may signal movement toward compromise in Washington. AIM’s Business Confidence Index has been issued monthly since July 1991 under the oversight of the Board of Economic Advisors.

 

Nation’s Non-residential Construction Spending Rises Slightly in November

WASHINGTON, D.C. — The nation’s non-residential construction industry experienced a modest gain in October as spending increased 0.5% to $571.3 billion, according to the Dec. 3 report by the U.S. Census Bureau. Total non-residential construction spending — which includes both private and public projects — is up 5.1% compared to one year ago. Private, non-residential construction spending increased 0.3% for the month and is up 10.7% year over year. Public, non-residential construction spending increased 0.8% for the month, but is 0.4% lower than the same time last year. Eleven of 16 non-residential construction subsectors posted increases in October, including transportation, up 5.3%; water supply, up 4.3; and lodging, up 3.9%. Ten construction subsectors experienced increases in spending year over year, including lodging, up 29.3%; transportation, up 21.2%; and power, up 19.2%. In contrast, five construction subsectors posted decreases in spending for the month, including communication, down 6.9%; manufacturing, down 2.7%; highway and street, down 2.3%; sewage and waste disposal, down 1.7%; and conservation and development, down 1.5%. Construction subsectors registering decreases in year-over-year spending include conservation and development, down 13.6%; water supply, down 7.2%; highway and street, down 4.8%; communication, down 3.8%; sewage and waste disposal, down 3.8%; and religious, down 3.7%. Residential construction spending jumped 3% for the month and is up 19.4% from the same time last year. Total construction spending — which encompasses both non-residential and residential spending — was up 1.4% for the month and is up 9.6% compared to October 2011. “As the nation approaches its fiscal cliff — a collection of tax increases and spending cuts that kick in at the end of the year — the pattern of recovery in non-residential construction spending has shifted,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Earlier this year, private-sector, non-residential construction spending growth was more robust, but has since declined. This comes as little surprise, as more projects are being put on hold.” He added, “there are two likely scenarios for non-residential construction spending in the U.S. Both scenarios hinge upon the outcome of the fiscal-cliff debate. Under one scenario, the nation falls back into recession, resulting in diminished public and private non-residential construction spending. Under the other scenario, a productive outcome on the fiscal cliff is achieved, and non-residential construction spending accelerates at some point in 2013 and into 2014.”

Briefcase Departments

Union Station Work Officially Underway

SPRINGFIELD — The long-awaited transformation of Springfield’s historic Union Station into the region’s main transportation hub officially got underway Nov. 20 at a ceremonial demolition held at the Frank B. Murray Street site. Mayor Domenic Sarno, along with U.S. Rep. Richard Neal, Gov. Deval Patrick, and other officials wielding sledgehammers, participated in the event. It signaled the start of demolition of the former baggage-handling building and will pave the way for construction of a 24-bay bus terminal with structured parking above it — the first steps toward reactivating the long-vacant downtown station. “Today represents the start of an important project that will benefit virtually everyone in Western Mass. It’s an exciting day for the Pioneer Valley,” said Sarno. Added Neal, “the successful renovation of Union Station has been a priority of mine for more than 30 years. I have always believed the restoration of this iconic Springfield landmark had the ability to transform the north blocks of downtown. And it will bring a world-class transportation center to the region in the process.” Other specific work to be completed as part of a $48.7 million Phase 1 project, designed by HDR Architecture Inc., includes the restoration of the main terminal building as a passenger center. The first floor will include operations, ticketing, and waiting space for the transit-service providers, as well as transit-related retail. Also, the passenger tunnel will be reopened and restored, linking the terminal building to rail-boarding platforms and pedestrian access to the downtown. When completed, this initial phase will provide connections for the continuation and expansion of services, including local, regional, and intercity buses; Amtrak, commuter, and high-speed passenger rail; and other ground-transportation services. The second phase of the project will emphasize the remaining development of additional transit-related restaurant and retail uses on the first floor and transit-related commercial space primarily on the terminal building’s upper floors, and will expand the new transit center’s parking capabilities. Sarno thanked Neal for his steadfast support of this regionally significant transportation project and for helping the city bring it to this point. “Recognizing that the station’s redevelopment is crucial to the continued revitalization of the city of Springfield, our goal is to transform this property into a sustainable transportation facility, positioning us to better meet the travel needs of the Pioneer Valley in the short and long term,” added Sarno. He also thanked Patrick “for making Union Station a top priority of his administration,” and the Massachusetts Department of Transportation for working in partnership with the city. “Through this cooperation and with funding support from the state, we have achieved tremendous progress as we’ve worked with the Federal Transit Administration to advance this vital project,” Sarno said. Funding for the Union Station project has been assembled from a number of federal, state, and local sources. In July, U.S. Transportation Secretary Ray LaHood was in Springfield to announce the award of a $17.6 million federal Bus Livability grant for the project. The project is scheduled to be completed and operational by 2015.

 

Officials Laud Completion of High Performance Computing Center

HOLYOKE — Gov. Deval Patrick headed a list of academic, political, and business leaders who gathered in Holyoke on Nov. 16 to officially mark the completion of the Massachusetts Green High Performance Computing Center built in the center of this historic industrial city. More than 200 people gathered for the event, which capped more than three years of planning and construction of the facility, which was hailed by several of the day’s speakers as a unique and highly effective collaboration involving higher education, private business, and government. The facility, which carried a price tag approaching $90 million, is a data center dedicated to supporting the growing research computing needs of five of the most research-intensive universities in Massachusetts: Boston University, Harvard University, MIT, Northeastern University, and UMass. The project was funded by those five schools, as well as additional partners Cisco and EMC, the Commonwealth of Massachusetts, and the federal New Markets Tax Credit program. In addition to Patrick, other officials to speak at the program and ribbon-cutting included Holyoke Mayor Alex Morse; Susan Hockfield, president emerita at MIT; Jeff Nick, senior vice president and chief technology officer at EMC Corp.; Larry Payne, vice president, Public Sector, Cisco Systems; Lt. Gov. Tim Murray; and Robert Caret, president of UMass.

 

Nominations Sought for Difference Makers

SPRINGFIELD — BusinessWest magazine will accept nominations for its Difference Makers Class of 2013 until Dec. 30. Difference Makers is a recognition program, started in 2008, that honors individuals and groups that are making an impact in the community and improving overall quality of life in the region. The Difference Makers Class of 2012 consisted of: Charlie and Donald D’Amour, president/COO and chairman/CEO, respectively, of Big Y Foods; William Messner, president of Holyoke Community College; Majors Tom and Linda Jo Perks, officers with the Springfield Corps of the Salvation Army; Bob Schwarz, executive vice president of Peter Pan Bus Lines; and the Women’s Fund of Western Massachusetts. A nomination form is available online at www.businesswest.com/difference-makers-nomination-form.

 

Baystate Working to Reduce Pre-term Births

SPRINGFIELD — The report card is in on premature births, and the grades are far from glowing. The March of Dimes released its 2012 Premature Birth Report Card in November, and while the U.S. pre-term birth rate dropped for the fifth consecutive year in 2011 to 11.7% — the lowest in a decade — the country still earned a disappointing ‘C’ grade. The March of Dimes grades states by comparing their rate of premature births to their 2020 goal of 9.6%. Three states and Puerto Rico earned an ‘F,’ and only four states — Maine, New Hampshire, Oregon, and Vermont — were graded an ‘A.’ Twenty-two states, including Massachusetts, received a ‘B’ grade and are one step away from achieving the goal. Still, “we still have a long way to go,” said Dr. Glenn Markenson, chief of Maternal Fetal Medicine at Baystate Medical Center. More than 500,000 infants are born prematurely in the U.S. each year, and about 10% of all deliveries are scheduled before 39 weeks, according to the U.S. Department of Health and Human Services. Furthermore, a recent study by the Leapfrog Group, a hospital-quality watchdog, shows that U.S. hospitals vary widely in their rates of elective pre-term deliveries, ranging from less than 5% to more than 40%. “Early deliveries should only be an option for medical reasons, when the life or health of mother or baby is in jeopardy,” said Markenson. Under his leadership, Baystate Medical Center has been working to establish strong guidelines to prevent unnecessary pre-term deliveries by induction or cesarean section, and last year the hospital instituted a ‘hard stop’ for any non-medically required elective delivery prior to 39 weeks, and all elective inductions in first-time mothers. Markenson said the practice of elective pre-term birth finally caught many healthcare-quality officials’ attention when more and more studies began to be published showing its potential harm, including a recent March of Dimes report showing that babies born in the 37th or 38th week have a higher risk of dying in their first year than a baby born after 39 weeks. In addition to working with other Massachusetts hospitals to help the state achieve an ‘A’ grade in the March of Dimes rankings, Baystate is helping lead a statewide initiative called the Massachusetts Perinatal Quality Collaborative.

Briefcase Departments

Three Pitches Accepted by Valley Venture Mentors

SPRINGFIELD — Three out of five ventures to pitch to Valley Venture Mentors have been accepted into the six-month program, which recently added separate tracks to handle the rising number of new and mature startups seeking services from the organization. PeopleHedge, based in Boston and Chicago, was represented by co-founder Damon Magnuski. The company simplifies the process of managing currency risk by allowing customers to select an exchange date, currency pair, and protection amount. InsideOut Solar was represented by co-founder Gregory Margolis. The company was formed by three Mechanical Engineering students at UMass Amherst. They have designed, built, and are testing a solar space-heating panel that slides easily into a standard home window, similar to an air-conditioning unit.Tinville (the Industry Network Village), based in Woburn and pitched by founder Disraeli Abreu, intends to become the premier fashion marketplace for startup and established independent designers. Tinville aims to create an interactive e-commerce site where each designer can host his or her own boutique. All users of Tinville.com will create a custom account on the site; however, fans of the label will have the opportunity to follow, shop at, and receive notifications from their favorite independent designers’ stores. The startups have been accepted into VVM with the expectation that they will successfully complete the accelerator track in six months and graduate to the mentor track, which was recently added to accommodate the rising number of mature ventures who still desire support and mentoring assistance.

 

Three Casino Companies to Vie for City’s Support

SPRINGFIELD — Three casino developers — Ameristar, MGM Resorts, and Penn National — met an Oct. 11 deadline to submit a formal proposal and a $50,000 fee to the city of Springfield. They will now compete for the city’s support in pursuit of casino-development rights in Western Mass. Each company has proposed a gaming resort development approaching $1 billion. Hard Rock International, which had expressed interest in Springfield and explored real estate downtown, did not submit a proposal. The 2011 state casino law allots one resort casino license to Western Mass. In addition to the Springfield projects, Mohegan Sun has proposed a resort in Palmer. On Oct. 11, PennNational released some details and an architect’s rendering for an $807 million gaming complex to be built in the city’s North End. The proposal calls for 3,000 to 3,500 slot machines, poker rooms, up to 100 live table games, and a hotel with 300 to 500 rooms. There would also be restaurants, a spa, a parking garage, and up to 45,000 square feet of meeting and convention space. The proposed 13.4-acre site includes the headquarters for the Republican newspaper and the current home of Peter Pan Bus Lines.

 

SBA Loan Volume Remains High

WASHINGTON — With loan volume steadily increasing for the past six quarters, the U.S. Small Business Administration’s loan programs posted the second-largest dollar volume ever in FY 2012, supporting $30.35 billion in loans to small businesses. That amount was surpassed only by FY 2011, which was heavily boosted by the loan incentives under the Small Business Jobs Act of 2010. In Massachusetts, under SBA’s two flagship lending programs, the 7(a) General Business Loan program and the 504 Certified Development Co. program, loan approvals supported 1,846 businesses with more than $670 million, said Bob Nelson, Massachusetts SBA district director. This ranks Massachusetts fifth out of 68 MBA offices nationwide for total loans approved under 7(a) and 504 combined for the fiscal year ending Sept. 30. The totals for 2012 nationwide include 44,377 loans, $15.5 billion approved under the 7(a) program and $15.09 billion under the 504 program.

Briefcase Departments

City Issues RFQ/RFP for Casino; Consultant Cleared

SPRINGFIELD — Springfield has issued its Phase I request for qualifications/request for proposals for a proposed destination casino resort development to be located in the city. Through this RFQ/RFP process, the city seeks to pre-qualify enterprises desirous of participating in the city’s Phase II process, the purpose of which will be to select one or more enterprises with whom the city will negotiate a host-community agreement for the development, construction, and operation of a destination casino resort project. Upon the successful conclusion of those negotiations, targeted for the end of April 2013, the final host-community agreement or agreements will be submitted to the City Council for approval and then to the city’s voters. Once approved in this manner, the host-community agreement must be provided to the Mass. Gaming Commission by any applicant for a gaming license.  The RFQ/RFP can be downloaded at www.springfield-ma.gov/casino. “We are excited to formally launch the casino selection process,” said Mayor Domenic Sarno. “We look forward to a robust competition which will determine the company or companies with whom we will enter into a host community agreement. This is an important first step that we anticipate will result in the largest economic-development project in the city’s history, bringing thousands of good-paying jobs to our great city, along with significant opportunities for our business community and sustainable economic benefits for our residents for many years to come.” In other developments, the state Ethics Commission cleared Springfield’s casino consultant of a possible conflict of interest. The chairman of the Massachusetts Gaming Commission had questioned whether that Shefsky & Froelich — a registered lobbyist in Illinois for Penn National Gaming and MGM Resorts, two of the companies seeking a casino license in the city — could be objective in advising Springfield. “We are pleased with the Ethics Commission’s opinion and thank the commission for its time and consideration of this very important matter,” said Cezar Froelich, chairman of the firm, in a statement. “By filing the disclosure forms required by Massachusetts law, we believe we have fully complied with such law in a manner that allows us to provide unbiased advice to the city.”

 

UMass Awarded $308,000 for Life Sciences Project

AMHERST — The Massachusetts Life Sciences Center (MLSC) announced the approval of a $308,000 capital grant to support a research project at UMass Amherst titled “Life Sciences Research & Innovation: Growth Strategy for UMass Amherst in the Massachusetts Bioeconomy.” The project is a formal study of opportunities to catalyze life sciences and life sciences-related economic development in Western Mass. The $308,000 grant will enable UMass Amherst to increase the breadth and depth of industry collaborations; enhance access of other stakeholders to assets at UMass Amherst and in the Pioneer Valley, such as the Pioneer Valley Life Sciences Institute (PVLSI) in Springfield; serve as a connector to the UMass system, the Commonwealth, and beyond; and catalyze the Western Mass. innovation ecosystem, especially in the life sciences. The MLSC is the agency charged with implementing the state’s 10-year, $1 billion Life Sciences Initiative, proposed by Gov. Deval Patrick in 2007 and approved by the Legislature in 2008. The Life Sciences Initiative targets $95 million in capital funding for UMass Amherst to construct an additional building within its new life-sciences complex, in which the school has already invested $270 million in recent years. The data collected during the project will inform UMass Amherst’s and the center’s future life-science-related investment plans in the region, including the building that is targeted for funding in the Initiative. “Gov. Patrick and I want to see positive development within the life-sciences industry for Western Mass.,” said Lt. Gov. Timothy Murray. “With this planning grant, the information gathered will inform our strategy for life-sciences growth in the region and further strengthen our state’s global leadership in this important field.” Added Dr. Susan Windham-Bannister, president and CEO of the MLSC, “as we pursue our mission of accelerating growth in Massachusetts’ thriving life-sciences supercluster, we are very focused on making investments across the entire Commonwealth, including the western part of the state. UMass Amherst is an important partner in that effort, and we are pleased to award this funding to support their forward-looking plans for life sciences growth in the region.”

 

Leadership Pioneer Valley Announces 2012-13 Class

CHICOPEE — Leadership Pioneer Valley (LPV) officially kicked off the 2012-13 leadership development class of 40 emerging and established leaders. Leadership Pioneer Valley is addressing the need to build a diverse network of leaders who aspire to work together across traditional barriers to strengthen the region. The new class members will take part in a 10-month program of experiential learning that will take place at locations across the Valley. The field-based and challenge-based curriculum is specifically designed to help the class members refine their leadership skills, gain connections, and develop a greater commitment to community stewardship and cultural competency. “The curriculum builds on the strong feedback from our inaugural class with some adjustments to make this an even stronger program,” explains Leadership Pioneer Valley Director Lora Wondolowski. “The program is divided equally between seminar-style days that will focus on advanced leadership skills and field experiences, where participants will get a hands-on view of communities throughout the Valley. The program also features small-team projects, where class members will address a regional need.” The 2012-13 class members are: Jessica Atwood, Franklin Regional Council of Governments; Jeff Bagg, Town of Amherst; Krista Benoit, Dietz & Co. Architects Inc.; Suzanne Bowles, Alliance to Develop Power/ADP; Nancy Buffone, UMass Amherst; Nicolle Cestero, American International College; Kristin Cole, Greater Northampton Chamber of Commerce; Ayanna Crawford, YMCA of Greater Springfield; Nicholas Criscitelli, MassMutual Financial Group; Laurie Davison, Westfield Bank; Charity Day, Franklin County Regional Housing & Redevelopment Authority; Roshonda DeGraffenreid, Baystate Health; Kyle Kate Dudley, Drama Studio Inc.; Julie Federman, Town of Amherst; Tony Franco, United Bank; Julie Gentile, Hampden Bank; Jeannette Gordon, New England Farm Workers’ Council; Erica Johnson, Pioneer Valley Planning Commission; Lori Kerwood, Cooley Dickinson Hospital; Dawn Koloszyc, Cooley Dickinson Hospital; Ljuba Marsh, Paulo Freire Social Justice Charter School; Dr. Julio Martinez-Silvestrini, Baystate Health; Irma Medina, Holyoke Community College; Donald Mitchell, Western Mass. Development Collaborative Inc.; Georgia Moore, Cooley Dickinson Health Care Corp.; Benjamin Murphy, United Way of Hampshire County; Glenn Posey, Western Massachusetts Electric Co.; Jon Queenin, Specialty Bolt; Jason Randall, Peter Pan Bus Lines; Lidya Rivera, Springfield Housing Authority; Debra Roussel, Town of Amherst; Alfonso Santaniello, the Creative Strategy Agency; Mark Sayre, MassMutual Financial Group; Sarah Schatz, Sarah’s Pet Services LLC; Maureen Trafford, Community Foundation of Western Mass.; Emmanuel Vera, MassMutual Financial Group; Janice Watson, YMCA of Greater Springfield; Tracye Whitfield, City of Springfield; Danielle Williams, GADA; and Anthony Wilson, City of Springfield.

 

MGM Casino Plan

Includes Union Station

SPRINGFIELD —  MGM Resorts International announced that it will include a plan to integrate a revitalized Union Station into its hotel, casino, and entertainment district proposal for downtown Springfield. The newest piece of MGM’s $800 million dining, retail, and entertainment district proposal is in response to the city of Springfield’s initiative to restore the historic Union Station to its full potential. As part of its plan, MGM would locate its regional corporate office and its regional training institute for new employees to Union Station. “Our project isn’t just about one neighborhood or community or interest group,” explained Bill Hornbuckle, MGM’s chief marketing officer and president of MGM Springfield. “It is about helping to create a better future for an entire city, and tying in Union Station is just one example of how we intend to leverage the global strength of MGM to attract new opportunities, growth, and prosperity to every corner of Springfield.” MGM has been meeting with city officials, community leaders, and residents in neighborhoods across the city to discuss MGM Springfield, which was first announced on Aug. 22. Over the course of those conversations, it became clear to the MGM team that restoring Union Station to its former glory was a top priority and major focus for the City of Springfield. “The vision Springfield’s elected leaders and city officials have put forward for Union Station is truly inspiring,” said Hornbuckle. “We’ve heard loud and clear that restoring this landmark is a key priority, and we want to play a leading role in making this a reality.” Hornbuckle said he has personally toured Union Station on multiple occasions, along with Jim Murren, MGM’s chairman and CEO. “The minute we first set foot in that building, we knew this was a place where we had to be,” said Hornbuckle. “We fell in love with the history and architecture, as well as the opportunity to help revitalize passenger rail service in Springfield.”

 

BCBS Names Leaders in Healthcare Access

BOSTON — Eighteen emerging leaders in healthcare access have been named to the seventh class of the Mass. Institute for Community Health Leadership (MICHL), a leadership-development program designed to help high-potential professionals increase their personal impact and enhance their health organization’s influence in the community and the healthcare system. The 18-day educational program takes place over the course of nine months, offering a highly experiential curriculum that includes classroom work, peer-to-peer exchanges, and collaborative learning.  During the program, students develop and implement a project that addresses a healthcare issue impacting low-income and vulnerable people in Massachusetts. MICHL engages participants in exploring the leadership challenges facing healthcare organizations in Massachusetts, identifying and building the capacities and competencies leaders will need to meet the challenges, and fostering collaboration among private nonprofits, public agencies, and academic institutions. The 2012-13 class includes: Rebecca Balder, Health Safety Net director, Division of Health Care Finance & Policy; Melinda Burri, director of Operations, Windsor Street Health Center; Paulette Renault-Caragianes, director, City of Somerville Health Department; Marta Chadwick, director, Violence Intervention & Prevention Program, Brigham & Women’s Hospital; Kevin Coughlin, executive director, Greater Lowell Health Alliance; Holle Garvey, nurse practitioner, Sisters of Providence Health System; Katherine Howitt, senior policy analyst, Community Catalyst; Jacqueline Johnson, chief operations officer, Caring Health Center; Stacey King, director, Community Health & Wellness Program, Cambridge Public Health Department; Joanna Kreil, quality initiatives manager, Mass. League of Community Health Centers; Nancy Mahan, senior vice president, Program Services, Bay Cove Human Services Inc.; Matthew McCall, senior consultant, the Home for Little Wanderers; Anne McHugh, director, Chronic Disease Prevention & Control, Boston Public Health Commission; Lenore Tsikitas, health access and promotion coordinator, Mass. Department of Public Health; Rossana Valencia, clinical policy analyst, UMass Medical School; Jennifer Valenzuela, national director of program, Health Leads; Alyssa Vangeli, policy analyst, Health Care for All; and Cathy Wirth, project manager, Healthy Kids, Healthy Future.

 

Job Gains Remain Elusive in Region, Commonwealth

BOSTON —The Executive Office of Labor and Workforce Development reported that the August 2012 seasonally unadjusted unemployment rates in Massachusetts were down in 17 labor areas, unchanged in three areas, and up in two areas over the month. Over the year, the rates are down in all 22 labor areas. Statewide, the August seasonally unadjusted unemployment rate was 6.4%, down 0.2% from July. Over the year, the statewide unadjusted rate was down 0.8% from the August 2011 unadjusted rate of 7.2%. In August, the Greater Springfield area, which includes most of Hampden County and parts of Hampshire County, saw unemployment fall to 7.8% from 8% in July, and from 8.4% in August 2011. However, the seasonally adjusted statewide August unemployment rate, released on Sept. 20, was 6.3%, an increase of 0.2% over the July figure, and down 1.1% from the 7.4% rate recorded in August 2011. The statewide seasonally adjusted jobs estimate showed a 4,800 job loss over the month. The national unemployment average, adjusted for seasonality, was 8.1% in August.

Briefcase Departments

Nonprofits Work Together to Beautify Zoo Grounds

SPRINGFIELD — Greater Springfield Habitat for Humanity (GSHFH) and the Zoo in Forest Park & Education Center joined together recently to improve the public grounds at the zoo during a volunteer event titled “Habitat Goes to the Zoo!” “Our primary mission is to provide decent, affordable housing to families, usually human families,” said Jennifer Schimmel, executive director of GSHFH. “Although this project falls outside of our typical mission, we are Springfield neighbors with the zoo, and the animals that live there need a little help with their housing as well. GSHFH is very adept at mobilizing and managing volunteers, and we are glad to be leveraging that talent on behalf of the zoo.” John Lewis, executive director of the Zoo in Forest Park, added, “we have spent much of this season recovering from big property damage from the storms of last year. We are so grateful that we were able to connect with Greater Springfield Habitat to put the finishing touches on many of our exhibits.” Habitat volunteers focused on painting 14 wooden buildings and animal sheds, he noted.

 

Blue Cross Blue Shield Awards $75,000 in Grants

BOSTON — To recognize Blue Cross Blue Shield of Massachusetts’ (BCBSMA) 75th anniversary, four not-for-profits each received a $75,000 grant to promote nutrition education and access to healthy foods. The BCBSMA 75th Anniversary Grants were awarded to the Holyoke Food and Fitness Policy Council, the Urban Food Initiative, Project Bread in partnership with Lynn Economic Opportunity Inc., and Boston Natural Areas Network. “For 75 years, Blue Cross has maintained a deep commitment to improving health outcomes and the quality of life for residents of the Commonwealth,” said Andrew Dreyfus, president and CEO of BCBSMA. “Many families continue to face financial hardship as a result of the economic downturn. With growing demand and shrinking resources, the safety-net services they turn to are severely strained. The BCBSMA 75th Anniversary Grants will help advance critical programs in the communities at greatest risk.” The four not-for-profit organizations were selected after a competitive process challenging them to develop programs to improve the lives of struggling families with children school-aged or younger in Massachusetts. Each organization takes a unique approach to advancing the health and nutrition of families facing economic hardship throughout the state. Locally, the Holyoke Food and Fitness Policy Council will implement a comprehensive nutrition education program geared towards influencing the eating habits of nearly 200 kindergarten students and their families located in three critical need elementary schools in Holyoke. The program provides education about eating and growing fresh produce, and includes field trips to local area farms. “Blue Cross’ support makes the Holyoke Kindergarten Initiative possible,” said Anne Cody, Kindergarten Initiative coordinator for the Holyoke Food and Fitness Policy Council. “Here in Holyoke, there is a large Latino population with strong preferences for culturally familiar produce. Thanks to Blue Cross, we can tie the students’ cultural backgrounds to local farming and healthy eating, which is an excellent approach to real and meaningful dietary preferences. We can’t thank Blue Cross enough for making the Holyoke Kindergarten Initiative a full, delicious adventure in local food and farming. Kids learn better when they eat better.”

 

Berkshire Money Management Named

Lead Sponsor of Artswalk

PITTSFIELD — First Fridays Artswalk, which began as the idea of local businesswoman Mary McGinnis and local artist Leo Mazzeo earlier this year, will become the first year-round monthly collaborative arts event in the Berkshires, thanks to a new lead sponsor. The local investment firm Berkshire Money Management has stepped up to the plate to support First Fridays Artswalk, enabling the initiative to continue into the winter and 2013. Berkshire Money Management President and Chief Investment Officer Allen Harris was impressed with the success of First Fridays Artswalk and saw an opportunity to help. “As a business owner, I see the incredible value of the arts and culture for the local economy and for our quality of life,” he said. “When I looked at the early success of the Artswalk and its positive impact for downtown businesses, it was clear to me that this needs to continue throughout the year.” He encouraged other local companies to also step up to the plate and support the event. Ferrin Gallery, who hosted the press conference announcing the new sponsor, was inspired by Harris to donate 15% of any sales made that day to First Fridays Artswalk. The events are held the first Friday of every month from 5 to 8 p.m. in downtown Pittsfield, featuring art shows in more than two dozen galleries, shops, and restaurants, often featuring artist receptions, artist talks, and other special events. McGinnis, owner of Gallery 25 and Mary’s Carrot Cake, has been measuring the direct economic impact in just the first four months of Artswalks. So far, she has documented more than $40,000 in sales of artwork and other items, and she’s not finished contacting businesses. Berkshire Money Management joins other major sponsors of First Fridays Artswalk, including Gallery 25, the Massachusetts Cultural Council/Cultural Pittsfield, and the Berkshire Art Assoc., along with the Berkshire Bank Foundation, Berkshire Heath Systems, Berkshire Theatre Group, and Downtown Pittsfield Inc. Downtown Artswalk partners include Empty Set Projects, Miller Supply, Berkshire Museum, Crowne Plaza, Brix Wine Bar, Marketplace Café, Downtown Pittsfield Inc., the Lichtenstein Center for the Arts, Pateez Boutique, Brenda & Co., Bagels Too, Berkshire Carousel Gallery, Steven Valenti Clothing for Men, Berkshire Community College Intermodal Gallery, Paul Rich  Sons, Spice Dragon, Alchemy Initiative, Art.On.No, Treehouse, Gallery 25, Mad Macs, BINGO!, Wild Sage, Aerus Electrolux, Y Bar, Ferrin Gallery, Circa, the Lantern, West Side Clock Shop, and Berkshire Medical Center. For more information, visit www.firstfridaysartwalk.com.

 

Construction Unemployment Falls

WASHINGTON, D.C. — The nation’s construction industry added 1,000 jobs in August, lowering the unemployment rate in the sector from 12.3% in July to 11.3% last month, according to the Sept. 7 employment report by the U.S. Labor Department. Year over year, the construction industry added 17,000 jobs, or 0.3%, rendering it among America’s slowest-expanding industries. The non-residential building-construction sector lost 2,400 jobs for the month and 4,900 jobs, or 0.7%, compared to one year ago. August employment in the sector stood at 653,200 jobs. Employment in the residential building-construction sector slipped by 1,100 jobs in August, but increased by 5,200 jobs, or 0.9%, during the past 12 months. Residential building-construction employment in August stood at 564,000 jobs. Non-residential specialty-trade contractor employment declined by 6,400 jobs in August and is down by 18,900 jobs, or 0.9%, from same time last year. In contrast, residential specialty-trade contractors added 8,200 jobs for the month and gained 18,700 jobs, or 1.3%, from one year ago. The heavy and civil-engineering construction sector gained 2,800 jobs in August and added 17,400 jobs, or 2.1%, since August 2011. Across all industries, the nation added 96,000 jobs as the private sector expanded by 103,000 jobs and the public sector shrank by 7,000 jobs. Year over year, the nation added 1,808,000 jobs, or 1.4%. The nation’s unemployment rate in August fell to 8.1%, down from 8.3% in July. “The fact that the construction-industry unemployment rate in August declined to 11.3% — the lowest level since October 2008 — seemed to be a pleasant surprise,” said Associated Builders and Contractors Chief Economist Anirban Basu. “But under further examination, this is largely due to former construction workers moving to other industries or leaving the workforce altogether. On a national level, the Labor Department reports a record-high 88,921,000 Americans are not in the civilian workforce. What is more discouraging, 368,000 people simply dropped out of the labor force last month and did not even look for a job. In the non-residential construction category, the news is similar. The sector lost additional employment in August, is down on a year-over-year basis, and posted negative job growth in six of the past seven months.” Basu noted that investors remain concerned by rising energy prices, America’s ‘fiscal cliff’ regarding year-end tax-cut expirations, the November elections, and impending policy decisions regarding interest rates and money supply. “Until at least some of this uncertainty is resolved, the non-residential construction labor market will continue to underperform.”

 

Business Confidence Index Continues to Rebound

BOSTON — The Associated Industries of Massachusetts (AIM) Business Confidence Index added three points in August to 55.2, continuing its recuperation from an 8.5-point plunge in June to 48.3. “What we have seen in the past few months encapsulates the overall course of this economic recovery,” said Raymond Torto, global chief economist at CB Richard Ellis Group Inc. and chair of AIM’s Board of Economic Advisors. “We are beset by persistent uncertainties — the June survey took place at a time of disturbing news from Europe, and of course there are domestic concerns as well — while, at the same time, the recovery is consolidating and prevailing business conditions are generally positive.” Torto noted that midyear drops in both 2010 and 2011 lasted longer than this year’s single month of decline. “We’re already most of the way back to May’s level. The Index is up six points from last August and 7.5 over two years. For the AIM Index as for the economy, progress since mid-2010 has been slow and bumpy, but the overall trend is upward.” The AIM Index, which has appeared since July 1991, is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.