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Cover Story Franklin County

Northern Exposure

Brolin Winning, general manager of the Shelburne Springs

Brolin Winning, general manager of the Shelburne Springs luxury hotel, sees many signs of new life along the Mohawk Trail.

Brolin Winning and his wife used to run a barbecue stand on the Mohawk Trail, and he’d occasionally look up at the abandoned building next door, a mansion built in 1914 that later operated for decades as the Anchorage Nursing Home before closing in 2011.

“We’d look up the hill at this place — which had been abandoned for a decade — and just think, ‘man, that’s a sweet spot.’ But it was just melting into the ground.”

But then a friend came into some money and was looking for an investment project. “I said, ‘you should buy the nursing home,’” Winning recalled. So they did — and begin fixing it up.

That was early 2020, when COVID hit, but the ensuing shutdown of the hospitality economy gave the team — owner Hilltown Lodge LLC, Thomas Douglas Architects of Northampton, and Tristan Evans Construction of Greenfield — time to redesign the space, gut the building down to its studs, and restore it with seven spacious suites; a kitchen, bar, and upscale but cozy lounge areas; and outdoor relaxation and recreation space across 38 acres. Among the next plans is a big stage up the hill for weddings and other events.

“I couldn’t wait to come back, just to be in the woods again and on the river again. It’s just, like, the best place to live.”

But while Winning is gratified that the hotel, called Shelburne Springs, has had a successful first few months, he doesn’t view the property in a vacuum, but as part of a renaissance along the Mohawk Trail that includes renovations and reopenings at the Sweetheart Restaurant in Shelburne Falls, the Duck Pond antique shop in Shelburne, the Blue Vista Motor Lodge just over the Berkshire County line in Florida, and more.

“There’s a lot of stuff going on, whereas I feel like it was … I wouldn’t say run-down, but quiet for a while,” Winning said. “COVID obviously affected everybody in this area, but a lot of people were coming out here even more because we’re like in the country and away from the crowd, and there’s a lot of outdoorsy stuff.

Jeff Sauser (left) and Jeremy Goldsher

Jeff Sauser (left) and Jeremy Goldsher have expanded Greenspace CoWork to a second location on Main Street in Greenfield.

“I’ve lived all over the country; I’ve lived a long time in California, Boston, Chicago, and different cities,” he went on. “But I’ve always loved it here. I grew up in Amherst and Northampton, but I used to come up here to fish when I was a kid. That’s how I got into the Mohawk Trail. To me, there’s nowhere like it. I was in San Francisco for a long time, and I would come back here twice a year. And I couldn’t wait to come back, just to be in the woods again and on the river again. It’s just, like, the best place to live.”

He’s not the only one who feels that way about this county of 71,000 residents — fewer than half the total of Springfield — spread across 26 communities.

“It’s stunningly beautiful. That can’t be overlooked,” said Hannah Rechtschaffen, recently appointed coordinator of the Greenfield Business Assoc. (GBA). “And I think there is a wonderful, long history up here of people being very engaged in their communities. When you travel from town to town, you find a lot of residents and business owners who feel very passionate about that, about the town that they’re in.”

“I feel like if you wanted to kill as many birds as possible with one stone, a robust housing strategy would be the way to do it.”

Rechtschaffen cited draws like the county’s outdoor recreation experiences and attractions like Bridge of Flowers in Shelburne Falls and Poet’s Seat Tower in Greenfield, but said tourists find much more.

“People come for these beautiful experiences, and they’re also finding other cool stuff, from whitewater rafting to restaurants. So the challenge is to reach out to people up and down the Valley and let them know there are really lovely experiences close to them,” she said. “All these towns have something special to offer, but together, we can offer something really beautiful.”

For residents and business owners, she added, “because it’s a small county, it has a bit of history of people needing to go to neighboring communities for different things. When you have that history of people stepping to the community next door to find something, you have this nice connectivity, which has gotten more robust over time. You have an opportunity for towns in Franklin County to work together in a unique way.”

Hannah Rechtschaffen, Franklin County CDC Executive Director John Waite, and Lisa Davol

Some of the players invested in a more robust Franklin County are (from left) Greenfield Business Assoc. Coordinator Hannah Rechtschaffen, Franklin County CDC Executive Director John Waite, and Lisa Davol, marketing manager of the Franklin County Chamber of Commerce.

Jessye Deane, executive director of the Franklin County Chamber of Commerce and Regional Tourism Council, agreed.

“I think one of the major strengths of Franklin County is that we have a comprehensive set of supportive services around business development,” she said, citing robust connections between the chamber, local businesses, workforce-development and entrepreneurship-focused agencies, and legislators.

“Collaboration is really the only way forward for us. I think Franklin County has always used partnership and collaboration as a special sauce, and I think that served us well during the pandemic. And part of the chamber’s job is to continue to fuel those collaborations and help make those connections.”

Clearly, it takes a village — well, 26 of them — to create a culture in the northernmost county of Western Mass., one that faces challenges, but also has more to offer than many outsiders realize.

 

Challenge and Opportunity

Deane said many of Franklin County’s challenges are no different than those seen across Western Mass.

“Of course, housing is a challenge. And transportation is particularly troublesome in more rural communities because that’s a barrier to a lot of our entry-level employment. And childcare is huge; there is a lack of high-quality childcare in this area.”

“One of the things I appreciate about Franklin County is that we can keep our identity — we have the nature, the beauty, the rural luster of it — but there’s increasing opportunity.”

Hiring also continues to be a challenge across industries, she added — another issue being felt across the state.

“I think we have a unique twist on that because we are a rural community, so it’s a little more exacerbated on this side of the state. One of the challenges I’m particularly concerned about is the population-decline projections. So we’re working overtime in collaboration with our legislators to make sure the Commonwealth is more equitably funding projects and initiatives across the state and, as a chamber, making sure that we’re doing our best to shine a light on why Franklin County is such a great area to live and work, and hopefully attracting new families to the area.”

She said the Regional Tourism Council’s task is to attract more tourism to a county that already brings more than $79 million in tourism dollars every year to destinations ranging from Berkshire East in Charlemont to Northfield Mountain and Sugarloaf Mountain; from Yankee Candle and Tree House Brewing Co. — and its slate of summer concerts — in Deerfield to Hawks & Reed Performing Arts Center in Greenfield and Double Edge Theatre in Ashfield.

Ashley Evans

Ashley Evans says reopening the Farm Table in Bernardston was an opportunity she couldn’t pass up.

“Tourism is really about OPM: other people’s money. And we want to make sure that we are helping them spend that here. And there is so much to do,” said Deane, who calls Franklin “the fun county,” and wants more people to know about that.

“There are endless opportunities for fun in Franklin County. And in terms of our work in the Regional Tourism Council, we’ve made some significant strides. In the past year, we branded our tourism side. We worked with a local company to give Franklin County a really great visual presence, with the tagline ‘more to Franklin County,’ because one of the things that we found when we did that investigative work is that folks said there’s always more to do: ‘I didn’t expect there to be so much. We’ve got to come back.’”

The council is also in the process of launching a standalone tourism website, Deane added.

“We want to make it easy as possible for people to plan their trip, and we’re working with our hospitality vendors to do itinerary planning based on any given interest. So if you’re really into craft beverages, this is what you can do for a weekend. If you’re really into outdoor recreation, this is what we recommend you can do for a weekend.”

A member of the Greenfield Business Assoc. who is about to join the Franklin County Chamber of Commerce, and whose family owns Hawks & Reed, Jeremy Goldsher also co-owns Greenspace CoWork with Jeff Sauser, so he has a broad perspective on business life in Greenfield and its environs.

“We’ve seen already that Hawks & Reed started a bit of a new music and cultural renaissance in downtown, to the point that now you can’t walk around in any given weekend without seeing kids running up and down the streets of different local venues,” Goldsher noted.

As the owners of Greenspace CoWork, which now has two facilities on opposite sides of Main Street in downtown Greenfield, Goldsher and Sauser have cultivated key business connections through programs like the monthly Business Breakdown networking events.

“It’s developed quite a bit, from ‘I need some emotional support from my business peers’ to a really fun, informal gathering of a lot of our favorite business leaders, business owners, and a group of young, entrepreneurship-minded folks that we’ve never met,” Goldsher said. “We always get new folks at each meeting. We’re now in our 14th or 15th run of it, and I think the Business Breakdown has been a gateway for us to really get onto the map of Franklin County in a bigger way than our co-work business was permitting us.”

With programs like Business Breakdown and a six-month accelerator program, Goldsher is starting to see a “domino effect” of key connections. “We’re starting to see the Franklin County CDC, which has been a great partner of ours, become a lot more visible in their entrepreneurial work and various programs starting to revolve around specific topics, which is great.”

 

Planting Roots

Emerging from the pandemic, those connections are more crucial than ever, Sauser said.

“We’ve had our ups and downs with the economy. We got through COVID. I think we’ve been an important part of the downtown revitalization, especially with the move to remote work and more flexibility. That’s important to the economic-development story of Franklin County in general, along with getting broadband access out there and just making this a place people can do a job that’s based anywhere, so they can live where they want to live.”

After all, while tourism is critical to the economy, Sauser said, tourism can’t be all Franklin County offers; it has to be a place people want to live and work, and where they find it affordable and rich enough in amenities to do both.

As an urban planner who has done a lot of policy and analysis work in housing, he said housing is the biggest issue.

“I feel like if you wanted to kill as many birds as possible with one stone, a robust housing strategy would be the way to do it. People are moving here in part because they can’t find the housing they’re looking for; nationwide, there’s a huge shortage.”

So there are real opportunities for growth, he said, adding that municipalities need to be smart with not only strategies for housing development — the residential units coming online in the former Wilson’s Department Store building in downtown Greenfield is a “game changer” for the city, he said — but with property taxes as well. The other big draw for families is school systems, and Sauser said many communities still have room for improvement there.

“That can hold places back. There are other options out there, private schools and charter schools, but the core of the public school system isn’t as successful as it could be.”

For every challenge, though, there are business success stories, Deane said.

“One that comes to mind is Sweet Lucy’s Bakeshop in Bernardston,” she said. “Lucy moved back into the area from Seattle. She crowdfunded to start her business. She’s now expanding. And that’s in partnership with support from the chamber, from the great folks at CISA, from the CDC. She’s really taken this bake shop and made it famous across the county. And she’s now expanding to include a community center so that she can help teach cooking courses or baking classes.”

A stone’s throw from Lucy’s is the Farm Table, the iconic Bernardston eatery on the Kringle Candle property that closed in 2020 but is reopening this month under the management of serial restaurateur Ashley Evans, who grew up in Turners Falls and was intrigued by the possibility of reopening the Farm Table while on a visit from her home in the state of Florida.

“When I came to this property, how could I pass it up? It’s just absolutely breathtaking, everything about it,” Evans said, adding that the goal is to offer an elevated culinary experience, with many ingredients locally sourced, but at a less elevated price than before.

“We plan on having a similar menu, but redone and more adapted to the market in this community. Instead of a fine-dining establishment, we want to make it an everyday establishment. You can stop by and get something, and the bill’s not $300.”

Evans also plans to host events, from outdoor movies to Hawaiian nights; from outdoor clambakes to a haunted house in the event center.

“We have a lot of ideas to bring the community together,” she said, adding that, despite the workforce pains plaguing the hospitality industry, she was able to staff up quickly, which says something about the establishment’s reputation.

“That speaks to what this property is. It almost speaks for itself,” she noted. “I didn’t have to do a ton of marketing; we said we’re hiring, and people were anxious to work here, which is a beautiful thing.

“I’m so pumped. I’m excited,” Evans added. “I just walk in and feel grateful every day.”

 

Grit and Gratitude

So does Rechtschaffen, who spent almost two decades away from Western Mass. before returning in 2018 and immediately immersing herself in Franklin County life, chairing the Sustainable Greenfield Implementation Committee, which supports the use and implementation of the city’s master plan, and serving on the Downtown Greenfield Alliance and the Local Cultural Council.

She was director of Placemaking for W.D. Cowls in North Amherst before taking on her current leadership position with the GBA, where she’s focused on how businesses in this largely rural county can thrive in the post-pandemic years.

“We’re looking at how people are locating themselves, especially with remote work, with proximity to Boston. We are seeing people come into this area with a different sense of how they’d like their lives to be,” Rechtschaffen said. “We welcome people in who are looking to move out of city-centered life without sacrificing the feeling of community and connectedness and available amenities.”

Deane said the past few years have taught resilience to residents and businesses here, but also new ways forward.

“Economic development is really a long game. So we’re having these conversations now that hopefully will impact the next 15 or 20 years,” she explained. “And we’re doing that with a fresh understanding that, at any point, those plans can go completely rogue and be blown up by whatever comes next. So we’re being cautiously optimistic as we plan and prioritize on a regional level.”

To Sauser, the county’s value is evident in its people, its businesses, its quality of life, and the places that bring those people — and visitors — together.

“I feel like it’s a place to watch,” he said. “I’ve been told, when I moved here, that Greenfield is the kind of place that always feels like it’s about to turn the corner, but it never actually does. I’m getting a lot of signals now that it’s looking pretty good.”

Rechtschaffen agreed.

“One of the things I appreciate about Franklin County is that we can keep our identity — we have the nature, the beauty, the rural luster of it — but there’s increasing opportunity,” she said. “It’s becoming easier to say, ‘this is what Greenfield is all about, this is what Franklin County is all about, and you’re welcome to be here.”

Incorporations

The following business incorporations were recorded in Hampden, Hampshire and Franklin counties and are the latest available. They are listed by community.

ADAMS

Creative Thought Institute Inc., 27 Park St., Adams, MA 01220. David Watson, same. Nonprofit organization established to advance creativity as a tool for personal and educational growth within the community through programming and instruction.

BELCHERTOWN

Bethel Ministries for All Nations Inc., 55 North Main St., Suite 16, Belchertown, MA 01007. Archibald Nebedum, same. Religious organization established to teach, preach, and study the gospel of Christ; to advance its membership in faith, hope, and charity; and to promote the advancement and glory of Christ’s kingdom by missionary, benevolence, and Sunday-school work.

CHICOPEE

Edu Janitorial Inc., 21 Grape St., Apt. 1, Chicopee, MA 01013. Eduardo Alves de Oliveira, same. Janitorial services.

EASTHAMPTON

Dalhaus Properties Inc., 11 Cherry St., Easthampton, MA 01027. Sarah James Dalhaus, same. Management of rental properties.

GREENFIELD

Nor’easter Reta Chapter Inc., 28 Ferrante Ave., Greenfield, MA 01301. Heather Savard, same. Educational and training events for members and non-members in the field of industrial refrigeration and ammonia.

LUDLOW

Pinpoint Precision Inc., 42 Perimeter Road, Ludlow, MA 01056. Joseph Deliso, 38 Virginia St., Springfield, MA 01108. Business of manufacturing processes, including precision drilling and honing services, and all related services and activities.

PITTSFIELD

Charles Scientific Inc., 82 Wendell Ave., Suite 100, Pittsfield, MA 01201. Evan Catudal, 40 Governor St., Apt. 2, Providence, RI 02906. Consulting services to the biotechnology and pharmaceutical industries and to develop drugs, biologics, and/or medical devices.

A Hipérbole Corp., 82 Wendell Ave., Suite 100, Pittsfield, MA 01201. Roberta Silveira de Paiva Cabral, same. Business-consulting services.

Vathin America Co. Ltd., 82 Wendell Ave., Suite 100, Pittsfield, MA 01201. Zhenhua Zhou, same. Medical product customer service, maintenance, import, and export.

SHELBURNE FALLS

Waly Cash Inc., 5 State St., Suite 1, Shelburne Falls, MA 01370. Sacha Tueni, 1001 Bridgeway, Sausalito, CA 94965. Peer-to-peer payment service.

SPRINGFIELD

Center Community Center Inc., 33 Oak St., Springfield, MA 01109. Althea Haines, 61 Mary Coburn Road, Springfield, MA 01129. Nonprofit organization established to secure and provide opportunities for youth and families in the community by offering a safe place to engage in activities, health, fitness, sports, workshops, etc.

The Heart Home Inc., 34 Front St., Suite 211, Indian Orchard, MA 01151. Dakota Lamont Cotton Smith, 211 Rosewell St., Springfield, MA 01109. Services to individuals seeking low- to high-threshold facilities, those seeking emergency shelter, and persons seeking transitional housing.

KSW/SBI Inc., 52 Biltmore St., Springfield, MA 01108. Karen Smith Wohlers, same. Holdings company.

WEST SPRINGFIELD

Willow & Moss Flowers Inc., 954 Westfield St., West Springfield, MA 01089. Ahrayah Julian, same. Florist.

WILBRAHAM

Silverauto Inc., 24 Briar Cliff Dr., Wilbraham, MA 01095. Maria Serra, same. Automotive repair service and sales.

Cybersecurity

Bridging the Divide

Leaders from the Commonwealth’s Executive Office of Economic Development and the Massachusetts Broadband Institute (MBI) at MassTech recently announced $14 million in new grants from the state’s Digital Equity Partnership Program to address statewide digital-equity gaps during an event at Tech Foundry in Springfield.

The three grants were announced by Economic Development Secretary Yvonne Hao, who highlighted selected projects from Tech Goes Home, which will receive $4.5 million; Vinfen, on behalf of the Human Services Alliance for Digital Equity, which will receive $4.3 million; and Baystate Health, on behalf of the Western Massachusetts Alliance for Digital Equity, which will receive $5.1 million.

“Massachusetts has a real opportunity to close the digital divide and ensure all people in our state can participate in the digital economy,” Hao said. “These grants will help residents build their digital skills and get online affordably, thereby expanding their connections to job and training opportunities, healthcare resources, social connections, and so much more. We are grateful to the Massachusetts Broadband Institute for its work to make affordable high-speed internet available to residents across the state.”

The secretary was joined at the event by business and nonprofit leaders from across the state, highlighting the critical need for increased digital connectivity for residents statewide, an issue that grew in importance during the COVID-19 public-health crisis. Following the secretary’s remarks, MassMutual Chairman, President, and CEO Roger Crandall spoke about the issue, appearing in his role as a board member of the Massachusetts Competitive Partnership, which published a report last year titled “Connecting Communities through Digital Equity,” highlighting the importance of addressing digital equity statewide.

“Internet access is a crucial driver of economic and social advancement, from fostering innovation and creating new jobs to utilizing government and community services,” Crandall said. “Yet, far too many households in Massachusetts lack broadband service, creating a significant barrier to many career and educational opportunities. The business community has a collective responsibility to help address this inequity by continuing to invest in and expand access to digital infrastructure, literacy programs, and affordable digital tools for all residents throughout the Commonwealth.”

The event included a roundtable discussion with executives from the three grant-recipient organizations, which pointed to the digital-equity challenges Massachusetts citizens face each day and how the awarded projects aim to increase connectivity and access. The grants will support two years of critical digital-equity project development and implementation across the state.

“The genesis of the Alliance for Digital Equity in June 2020 was a direct response to digital disparity — not new — and our societal dependence on the internet to address to meeting basic material needs as the COVID-19 pandemic surfaced,” said Dr. Frank Robinson, vice president of Public Health at Baystate Health. “It was embarrassingly obvious that digital marginalization for already-marginalized people would exacerbate negative health outcomes, economic oppression, and racial injustice. Digital equity and inclusion is truly a super-social determinant of health, critical to our meaningful progress toward health equity and satisfying basic human rights in this connected society, linking people to vital resources, such as jobs, education, healthcare, food, and information.”

The Digital Equity Partnerships Program was launched in September 2022 with the goal of designating qualified organizations to implement projects that meet the goals outlined in the Commonwealth’s ARPA COVID recovery legislation, which created a $50 million fund to bridge the digital divide in the state.

“I am thrilled to see that Baystate Health, in partnership with the Western Massachusetts Alliance for Digital Equity, have been recognized by the Commonwealth’s Digital Equity Partnership Program and received a grant of $5.1 million to continue addressing the digital divide,” state Sen. Jo Comerford said.

State Sen. Adam Gomez added that “the funds created by the ARPA COVID recovery legislation of 2021 represented a momentous step toward bridging the digital-equity divide for Western Massachusetts. There are far too many unserved communities in this region of the Commonwealth who do not have simple access to WiFi. Communities in this region will now have substantially increased access to not only WiFi, but also support for key programming areas such as digital literacy, public-space internet modernization, and connectivity initiatives for economic hardship. Eliminating the digital-equity divide in Western Mass. is absolutely crucial to supporting a thriving economy.”

While the state has made trides to improve broadband and WiFi access, state Rep. Lindsay Sabadosa noted, many communities have been left behind, much public housing remains unwired, and towns that don’t know how to fund projects that would level the playing field for all residents. “The Digital Equity Partnership Program will assist these communities, providing important funding and assistance in learning how to incorporate this technology into their daily lives.”

Springfield Mayor Domenic Sarno said the Digital Equity Partnership Program will help eliminate or mitigate the barriers faced in accessing digital equity and help close the digital divide. “Access to affordable and reliable internet is essential for our residents, and achieving this goal will not only enhance the quality of life for many, but will also help advance vital economic-development projects and educational initiatives, not only here in Springfield, but across the Commonwealth.”

The state’s digital-equity programs build on initiatives launched in response to the COVID-19 public-health crisis, which included public WiFi hotspots in unserved towns in Western and Central Mass., as well as the Mass Internet Connect program, which worked with MassHire to provide financial support and digital-literacy tools to help get unemployed residents back to work.

The MBI has also launched a Municipal Digital Equity Planning Program to support Massachusetts communities with planning activities that will help build a broad understanding of how a lack of internet access is impacting residents in their community, as well as a Broadband and Digital Equity Working Group comprised of stakeholders from across the state that will inform the makeup and focus of state programs, providing key technical expertise and representation of target populations.

“Our partner organizations are leaders in the digital-equity field and have cultivated an incredible network of local stakeholders who will ensure these funds have maximum benefit to the communities they are designed to serve,” said Michael Baldino, MBI director. “Today’s grants, coupled with our municipal planning program and the engagement of our dedicated working-group members, will ensure that the dollars invested lead to the desired impact — more residents will not only gain access to devices, digital skills, and more affordable internet, they will have access to a wider range of social, educational, and healthcare resources.”

Women in Businesss

Changing Tides

The Massachusetts labor force has transformed in recent decades, with some of the biggest changes being the advancement of women, workers getting older and more diverse, and a divergence in labor-force participation rates based on levels of educational achievement.

Those are among the findings in “At a Glance: The Massachusetts Labor Force,” a policy brief written by Aidan Enright and published by Pioneer Institute, with data drawn from the institute’s new laboranalytics.org website.

“Decreasing labor-force participation rates among prime-aged (25-54) men and college-educated individuals may portend future labor shortages,” Pioneer Institute Executive Director Jim Stergios said.

Nationally, the labor-force participation rate among 25- to 54-year-old men has fallen from 96.2% in 1948 to 88.8% last year.

Massachusetts had nearly 300,000 unfilled jobs in 2021. Inadequate daycare capacity, a mismatch between the skills needed for these jobs and the skills possessed by potential workers, immigration restrictions, and a spike in retirements during the pandemic are among the reasons economists cite for the shortage.

The number of individuals 65 and older in the Massachusetts workforce rose dramatically in recent years, then plateaued and decreased from 2019-21, possibly due to retirements during the pandemic. Overall, the number of older workers more than doubled between 2007 and 2021, from 131,000 to 271,000.

The increase in older workers was particularly notable among women aged 55-64. Between 2007 and 2021, an additional 105,000 women in that age group entered the workforce, compared to 79,000 men.

According to the report, women are likely the reason why New England has a high labor-participation rate compared to other census regions, as women there have a higher rate than in all but one other region. New England men, on the other hand, had the fourth-highest rate out of nine total census regions in 2021.

The pandemic also affected women the most — their employment rate dropped 7.7% compared to 6% for men — even though their recovery from it has been quicker than for men. Women in Massachusetts also had a labor participation rate 4.5% higher in 2021 than women nationally. While men in that age range accounted for 79,000 additional workers to the workforce, women added 105,000.

Among other findings in the report:

• As a higher rate of older individuals remained in the workforce, the number of 16- to 19-year-old workers fell by 40,000 between 2019 and 2021.

• The labor-participation rate among non-whites has been higher than among white workers in every year since 2018. Minorities accounted for 18% of the Massachusetts labor force in 2007, rising to 30% in 2021. The Massachusetts workforce is still less diverse than many other states, but it’s by far the most diverse in New England.

• In New England, Massachusetts ranked second behind New Hampshire with 62.1% of its total population employed in 2021. Previously, the Commonwealth also often ranked behind Connecticut and Vermont.

• Massachusetts saw a notable increase in the size of its workforce between 2016 and 2018 before shrinking during the pandemic. In 2018, the labor-force participation rate reached its highest level since 2007, and the workforce was still larger in 2021 than it had been in 2016.

Without policy intervention, serious structural challenges will remain for the Massachusetts labor force, the report notes. Like the rest of New England, Massachusetts has an older population and will struggle to maintain and grow its labor force as Baby Boomers continue to retire and less-populous younger generations attempt to fill the void they create. This, if left unattended, will create an employment desert. Employers finding it increasingly difficult to hire skilled candidates to fill positions will limit the state’s economic growth potential.

To address these issues, the report continues, the Healey administration and Beacon Hill lawmakers should consider three primary areas that are ripe for reforms and advocacy: expanding daycare capacity and affordability, expanding vocational-technical school programs, and advocating for less-strict high-skill immigration caps.

One of many issues that keep healthy, prime-aged adults sidelined from the labor force is concerns over childcare. Several studies have indicated that affordable childcare increases the number of hours worked by mothers and frees up parents to re-enter the labor force. Nationally, Massachusetts ranks below average in terms of available childcare. One study found that, in 2019, the state was likely more than 30% below demand in terms of available seats. This lack of supply has severely inflated prices; the average parent pays as much as $20,000 a year for an infant and $15,000 for a 4-year-old, ranking Massachusetts near the bottom of all states in affordability.

Separately, many workers remain sidelined as a result of a skills mismatch between them and employers. While there are nearly 300,000 job openings in the state, there remain 140,000 unemployed workers, a ratio of more than two open jobs for every unemployed person. This ratio has largely remained the same since 2021, despite millions of dollars spent on workforce training.

Lastly, and likely most consequentially, the state has suffered from diminished immigration levels due to overly restrictive federal immigration policies. Massachusetts relies heavily on immigrants, as the state would likely have seen significant net outmigration without inflows from immigrants over the last decade. Only recently has the state lost net residents — more than 110,000 since 2019 — due to pandemic-era restrictions on immigration and other compounding factors like remote work and an increased cost of living.

Construction

Claiming Mileage

 

On March 30, the Massachusetts State Senate passed a bill that includes $350 million in bond authorizations for transportation needs across the state, including $200 million for the state’s Chapter 90 program, which provides municipalities with a reliable funding source for transportation-related improvements, including road and bridge repairs.

“This legislation will maintain and improve our state’s infrastructure, ensure that residents have safe and reliable transportation options, and support sustainable, regionally equitable economic development in communities across the Commonwealth,” Senate President Karen Spilka said.

The legislation also authorizes $150 million in programs that will assist municipalities with various transportation-related projects. This includes $25 million each for the municipal small-bridge program, the Complete Streets program, a bus-transit infrastructure program, grants to increase access to mass transit and commuter rail stations, grants for municipalities and regional transit authorities to purchase electric vehicles and the infrastructure needed to support them, and new funding dedicated to additional transportation support based on road mileage, which is particularly helpful for rural communities.

“Rural towns do not have large municipal budgets like some Commonwealth cities; yet, with much smaller municipal budgets, they have been expected to maintain many hundreds more miles of roads than their urban counterparts.”

“By dedicating a $25 million fund to rural communities for road and culvert work, the Senate has once again demonstrated a commitment to regional equity,” state Sen. Jo Comerford said. “Rural towns do not have large municipal budgets like some Commonwealth cities; yet, with much smaller municipal budgets, they have been expected to maintain many hundreds more miles of roads than their urban counterparts. They have culverts in need of repair and a significant number of gravel and dirt roads. This rural program recognizes and begins to address these pressing, inequitable realities for rural communities, and I’m deeply grateful.”

In arguing for the bill’s passing, Comerford made a passionate appeal for relief for communities in her district, which includes parts of Hampshire, Franklin, and Worcester counties.

“I know Boston didn’t have a lot of snow this winter. That was not the case in my district. Just over two weeks ago, a number of towns in my district received over 24 inches of snow, some getting as much as 38 inches just in one storm,” she said. “The Hatfield DPW director wrote that, ‘due to the late storms, we have a lot of roads that have fallen apart and a lot of tree damage. With the costs of asphalt rising and the Chapter 90 funding staying the same, we will never catch up.’ The Greenfield DPW director told us, ‘due to many freezes and thaw cycles, our roads have shown accelerated deterioration, and our pavement-management program is really in shambles.’

She said the base amount being provided to communities has been static for many years, while costs are constantly rising. “Weather events are getting more extreme, putting more stress on roads and bridges and cleanup, and rural municipalities have many dirt and gravel roads, making up more than 30% of a municipality’s road network, in some instances, in my district. And this, of course, is exacerbated by climate change, the erosion and the disrepair of these roads.”

She noted that the existing Chapter 90 formula used to distribute funds — established more than 50 years ago — takes into account road mileage, but also population and employment. “But this doesn’t work for the places that don’t have the people, but do have the miles and miles of roads. Adjusting the base Chapter 90 formula to put more emphasis on road mileage is something that I respectfully urge us to consider.”

State Sen. Paul Mark, who represents all of Berkshire County among some communities in Hampden, Hampshire, and Franklin counties, agreed that the mileage-based calculation will greatly benefit smaller towns.

“In a district of 57 cities and towns, 54 of which have populations of fewer than 10,000 people, and in some cases communities as small as 120 residents, we live first-hand every day how difficult it can be to undertake road repairs, invest in new equipment, or have our voice heard in Boston,” he said.

Legislators outside Western Mass. also praised the bill’s passage.

“Our transportation system is the backbone of our Commonwealth, connecting us to our jobs, families, and communities,” said state Sen. Brendan Crighton, chair of the Senate Committee on Transportation. “This investment is not just an investment in infrastructure, but an investment in the future of our Commonwealth, enabling our cities and towns to make the necessary improvements to promote efficient and safe travel for all.”

State Sen. Edward Kennedy, chair of the Senate Committee on Bonding, Capital Expenditures, and State Assets, added that “I’m pleased to see this crucial investment in the Commonwealth’s roads and bridges move toward fruition. The cities and towns of Massachusetts depend on this necessary funding to maintain their transportation infrastructure.”

A different version of the bill having previously been passed in the House of Representatives, the two chambers will now reconcile differences before sending the bill to Gov. Maura Healey’s desk.

Insurance

Avoiding a World of Hurt

By Encharter Insurance

 

If you are an employer in Massachusetts with one or more employees, workers’ compensation is a mandatory business-insurance coverage. An employer may be an individual, a partnership, a corporation, or any other form of ownership that has employees. Failure to carry workers’ compensation coverage can result in an immediate stop work order and fines for every day that no coverage was available.

Besides being the law, here’s why you need it: workers’ compensation is essentially a no-fault system designed to protect both employers and employees should a workplace injury or illness occur. Your workers’ comp insurance policy would cover payment for medical care related to the employee’s injury, and would pay wage-replacement benefits, also called indemnity payments. In exchange for these benefits, workers’ comp, rather than the courtroom, becomes the employee’s exclusive remedy.

Individual states have jurisdiction over their own systems, so specific regulations and benefits vary by state. In Massachusetts, the Department of Industrial Accidents (DIA) manages the workers’ compensation system, adjudicating any disputes or appeals that arise. Meanwhile, the Massachusetts Workers Compensation Rating and Inspection Bureau sets rates.

 

How Is Coverage Obtained?

Most employers secure their workers’ compensation from an insurance agent. Large employers sometimes self-insure but must pass several regulatory gating issues to qualify for self-insurance.

If two or more insurance companies decline to insure your organization, you may have to seek coverage in the Massachusetts residual market, also known as an assigned risk pool.

Workers’ compensation insurance can be canceled by the insurance company, but only for the reasons of non-payment of premium, fraud or material misrepresentation, or a substantial increase in the hazard being insured. Your insurance company would need to notify you of cancellation with 10 days written notice.

 

How Are Rates Set?

The cost of the insurance is based on anticipated loss experience and is comprised of two basic components.

Under manual premium, the cost for your workers’ compensation policy is determined by your payroll and the classification of the work your employees do. The riskier the work, the higher the rate for the class code. There are thousands of class codes set by the Workers Compensation Rating & Inspection Bureau (WCRIB) in Massachusetts.

Under modified premium, once you have purchased workers’ compensation for two years, if the sum of the premiums for two years is $11,000 or more, your policy will be subject to experience rating. Manual premium is multiplied by an experience rating factor (or ‘e-mod’) reflecting your specific organization’s loss history. Much like the experience rating system used by many states to develop auto insurance rates, a bad year will impact an employer for years to come, as three prior years’ experience are used to develop a workers’ compensation e-mod.

 

What Benefits Does Workers’ Comp Provide to an Injured Worker?

Workers’ compensation coverage provides unlimited medical expenses, lost wages (also referred to as wage replacement or indemnity), rehabilitation expenses, and dependent and funeral expenses up to a state’s limits

The amount and duration of wage replacement and medical benefits varies based on each state’s law. Generally, the injured worker faces no out-of-pocket medical costs.

 

What Are Your Responsibilities as an Employer?

• Obtain workers’ compensation insurance coverage. Failure to carry coverage can result in stop-work orders and daily fines for the uncovered duration.

• Show proof of that coverage by posting notice in a public and visible place that all employees use.

• Provide a safe workplace, as required by OSHA.

• If an employee is injured, send them for medical care. In Massachusetts, you have the option to choose the physician for the first appointment.

• Report a medical-only injury (one with no anticipated lost time) to your insurer.

• Report a workplace injury with five or more days of absence, or a death, to the Massachusetts Division of Insurance.

 

What Are Some Best Practices to
Minimize Costs?

You can lower your workers’ comp costs by working to the lowest possible e-mod. There are two variables that you should work to control: the frequency of injuries, or how many work-related incidents occur; and the severity of workplace injuries, or the duration of time away from work. Here are best practices to help control both and to help you attain the lowest possible experience e-mod:

• Maintain a safe and healthy workplace. The least costly injuries are the ones that never happen. Control frequency by setting the expectation for an injury-free workplace, training employees to work safely, requiring personal protective equipment, and conducting periodic walk-through audits. Your insurance company can often provide safety resources.

• Have a plan for point-of-injury response. A quick, caring, non-judgmental response to a work injury will help to set the trajectory for a positive outcome for all. Ensure that employees and managers know what to do if an injury occurs. Escort the injured worker to medical treatment.

• Partner with a nearby occupational doctor or medical clinic. Massachusetts allows employers to choose the first medical contact. Choose a top-quality physician or a clinic experienced in workplace injuries. Your insurance company may have a good network.

• Report injuries to your insurer in a timely manner. Early reporting is extremely important — numerous studies have demonstrated that the sooner injuries are reported, the better the outcome. Aim for same-day reporting.

• Prepare for return to work. It’s important to get employees back to work and on the team as soon as possible to help prevent disability syndrome. Plan for a transitional or modified job duties to help the employ re-acclimate and work-harden to their regular job.

Opinion

Editorial

 

Gov. Maura Healey presented her first budget a few weeks back, and it contains some proposals that could help the state navigate its way out of an ongoing workforce crisis.

Chief among them is something called MassReconnect, which would fund free community-college certificates and degrees to Commonwealth residents who are 25 years and older and have not yet earned a college degree.

Based on initiatives in Michigan and Tennessee, MassReconnect actually goes further than those programs by covering more than just tuition; it also covers mandatory fees, books, and various support services. It is designed to remove barriers to getting the college degree that is needed to succeed in most jobs today, and it holds significant promise to do just that.

So do some of Healey’s other proposed investments in higher education, including a 3% increase in public college and university base spending, as well as $59 million to stabilize tuition and fees at the University of Massachusetts and other public institutions.

But it is free community college that is getting the most attention, and rightfully so. In fact, Senate President Karen Spilka has been working on legislation to achieve just that, saying that reducing the cost of getting a degree will help close equity gaps and build a more educated workforce to meet the needs of important industries in Massachusetts..

Indeed, while the bottom-line cost of a community-college education is much lower than at four-year schools, it is still a burden to many and a roadblock when it comes to attaining not just a job, but a career. In that sense, this proposal could open doors to individuals who have seen them closed for one reason or another, while holding considerable potential to bolster the state’s 15 community colleges and the state’s economy as a whole.

Indeed, the Commonwealth’s community colleges, long considered a key component in any region’s economic-development strategy, and especially here in Western Mass., have been struggling of late, and for many reasons.

Smaller high-school graduating classes are just one of them. A strong job market has traditionally had the effect of impacting enrollment at community colleges — they thrived during the Great Recession, for example — and that pattern has held for roughly the past decade or so. Meanwhile, the pandemic certainly hasn’t helped.

This region needs its four community colleges — Berkshire Community College, Greenfield Community College, Holyoke Community College, and Springfield Technical Community College — and it needs them to be strong and vibrant if it is to create, and maintain, a strong pipeline of workers coming into fields ranging from healthcare to cannabis to hospitality.

Meanwhile, community college serves as a place to start one’s secondary education. Many graduates of these schools move on to four-year colleges and degrees that lead to a wider range of job, and career, possibilities. But first, students need to begin.

That’s why this proposal holds such potential. It is designed for non-traditional students, those who haven’t started in college, or who have started but haven’t completed, for one reason or another. These are the individuals who hold the most promise for bringing some real relief to the region’s ongoing workforce crisis, one that is impacting businesses in every sector of the economy.

The concept of free community college has its skeptics, and some will wonder where the money will come from and whether the state can afford to do this.

Looking at matters from an economic-development lens, however, one could argue that the state can’t afford not to do it.

 

Community Spotlight Cover Story Features

The Paper City Looks Back — and Ahead

Holyoke City Hall

Go just about anywhere in the Paper City — City Hall offices, manufacturing facilities, the local utility, restaurants, some cannabis dispensaries, anywhere — and you will find pictures of what would be called ‘old Holyoke.’ And some images of the new Holyoke as well.

They’re everywhere. Pictures of the old but still-standing mills, the canals, Mount Tom, High Street in a different age, the Hadley Falls Dam, and especially City Hall, the iconic Gothic Revival structure built in 1871 that is, in many ways, the symbol of this historic city.

These pictures you see everywhere are visible evidence of the enormous pride people from this city, or now doing business in it, take in Holyoke.

You see this this pride in every community in Western Mass., from the small towns in Franklin County to the capital of the region, Springfield. But in Holyoke, it’s … well, different. And it just seems like there is more of it.

This much is made clear in the stories that follow in this special section commemorating the city’s 150th birthday. People from Holyoke take a special pride in being from their city, and for many reasons.

There is history — this is the country’s first planned industrial city. There is architecture. There are landmarks. There are institutions. There is tremendous diversity. There is the St. Patrick’s Day Parade and Road Race. Mostly, though, there are people — those who lived a century and more ago, and those who call it home today.

As the city turns 150, there is much to celebrate, and certainly not all of it is in the past, although the past is what many people like to focus on.

There was a time when Holyoke was a model industrial city producing some of the finest papers and textiles in the world. The mills producing these products created thousands of jobs, enormous wealth, and tremendous prosperity.

The city’s fortunes changed, obviously, as these mills closed or moved south or overseas starting just after World War II. For decades, the city was in decline, even as it remained a center of jobs and manufacturing.

Today, there is a sense of revitalization and vibrancy, with new leadership, especially Joshua Garcia, the city’s first Hispanic mayor, and an economy that is far more diverse and fueled by everything from a surging creative-arts sector to a cannabis industry that found in Holyoke a welcome mat, millions of square feet of old mill space perfect for cultivation and even dispensaries, and inexpensive, green energy.

Another factor powering this revitalization is entrepreneurship. Through the efforts of EforAll, the Greater Holyoke Chamber of Commerce, Holyoke Community College, and other agents of change, Holyoke residents, and especially those making up the minority majority, are creating new businesses, from restaurants to dance studios to fabric shops, that are changing the face of High Street — and the entire city.

These stories and many others are told in the pages that follow. Together, they tell of a city with momentum. A city with vision. A city with renewed optimism about what can be done when people work collaboratively. A city that has a lot to celebrate.

 

Holyoke. Wanna Make Something of It?

By Darby O’Brien

 

Unless you’re from Holyoke, you probably won’t get it.

We’re a little like Southie on the other side of the state. Hardscrabble Holyokers have grit and never quit. Holyoke is a city with soul. It’s a city of neighborhoods. Churchill, Elmwood, the Flats, the Highlands, Oakdale, and Springdale. As Liberty Bank President and Holyoker Dave Glidden says, “you can take the kid out of Holyoke, but you can’t take Holyoke out of the kid.”

Just look at the cast of characters that came out of this place. Start with the famous drummers. Hal Blaine, a Rock & Roll Hall of Famer, played with the legendary Wrecking Crew on 40 number-one hits, and Ronnie Hurst played in Steppenwolf. Holyokers Michael and John Shea wrote the Notre Dame fight song. We have Emmy-winning actress Ann Dowd. Alan Eisenstock was a writer and producer on shows like Mork and Mindy, Sanford and Son, and Family Matters. My nephew, Lenny Jacobson, is another one you’ve seen on the tube, from big-time TV spots to shows like Nurse Jackie, and he just won the 2023 JFK Award.

We’ve also got Neil Sheehan, the New York Times writer who released the Pentagon Papers and won a Pulitzer Prize for his book A Bright Shining Lie, considered to be one of the best books about the Vietnam War. Mitch Epstein is a world-renowned photographer. Frank Leja, who lived down the street from me as a kid, signed as a ‘bonus baby’ with the New York Yankees at 17. To this day, he’s the youngest player ever to appear in the pinstripes. The list goes on. Maybe it’s in the water. We’ve got four reservoirs. They’re all closed for fishing now, but we sneak in and cast a line anyway.

Another thing unique to Holyoke is the game of Pickie. We invented the game in the streets and alleys downtown. Just saw off your mother’s broom for a bat, and grab some Pee Gee balls, and you’re set. It’s always been a sports town. Betsy Frey carries on the family business at Holyoke Sporting Goods, probably one of the last independent sporting-goods stores left. Part of what keeps it going is the boatload of Holyoke merchandise she sells in the store, especially around parade time. You’ve heard about Holyoke’s St. Patrick’s Day parade, right? One of the biggest in the country.

The late “Made in Holyoke” rapper Justin Chavez said, “it’s a city full of pride and hope, a city that’s alive.” My old buddy John Hickey, who was the Water and Power chief, coined the slogan “Holyoke. Best City by a Dam Site.”

Damn right.

 

Darby O’Brien, a Holyoke native, is the owner of the marketing and public relations firm Darby O’Brien Advertising in South Hadley.

Features Picture This

Photos Past and Present

Holyoke’s rich industrial past, one that earned it the nickname ‘Paper City.’

Holyoke’s rich industrial past, one that earned it the nickname ‘Paper City.’

Old Holyoke Dam

Mountain Park

A view of Mountain Park, the popular amusement park that closed its doors in 1987.

 

Holyoke’s canals gave the city water power — and an identity.

Holyoke’s canals gave the city water power — and an identity.

 

City Hall has become a symbol of Holyoke.

City Hall has become a symbol of Holyoke.

 

One of the horses from the carousel

One of the horses from the carousel at Mountain Park, later moved to Heritage State Park, where it has become a popular attraction.

 

An aerial shot of Holyoke, one of its canals

An aerial shot of Holyoke, one of its canals, and one of its many distinctive mills.

 

The Massachusetts Green High Performance Computing Center

The Massachusetts Green High Performance Computing Center is part of a new era for Holyoke’s business community.

 

This mural created by the artist known as BORDALO II

This mural at 44 Clemente St., created by the artist known as BORDALO II, is part of the Beyond Walls initiative that has changed the landscape in downtown Holyoke and beyond.

 

Features

Getting Down to Business

Brothers Juan (left) and Gilberto Uribe

Brothers Juan (left) and Gilberto Uribe are co-owners of El Paraiso Colombiano restaurant, a true family affair that has found a home on High Street.

Juan Uribe calls it a “family dream.”

He was referring to El Paraiso Colombiano restaurant, an entrepreneurial gambit that is truly a family affair.

Indeed, Juan and his brother, Gilberto, are co-owners and also cook and tend bar. Their father is head chef, and their sister is a waitress. Together, they created and now operate what they believe to be the only Colombian restaurant between here and Hartford, one that opened in the middle of the pandemic, but quickly found its stride nonetheless.

“On grand-opening day, there was a line outside to the corner,” said Juan, adding that, while there have been plenty of challenges with this venture, it has been a huge success to date, drawing patrons from around the block but also across the region and even beyond. “We thought people would come out and support something new, and they have.”

Juan, Gilberto, and other members of the Uribe family are now part of a changing scene on High Street, one of several ‘main’ streets in this city, and also part of an ongoing surge in entrepreneurship that is changing the face of the local business community.

Indeed, where once this city was dominated by large mills that covered several blocks of real estate, it is now marked increasingly by smaller ventures that occupy a storefront or even a desk or cubicle in the incubator space at the EforAll offices, also on High Street.

Jeff Cattell and Joseph Charles are also part of this changing scene. Business and life partners, they launched Paper City Fabrics, a supplier of a wide variety of fine fabrics, in September 2021, and have taken it from an online operation to a storefront on High Street that was most recently home to a law firm. They are completing renovations now and expect to open in the spring.

“Our goal has always been to open a brick-and-mortar storefront,” said Cattell, adding that he and Charles moved to the city four years ago and, after considering several business options, settled on a thrift-store model in what he called the “fiber-arts realm.”

Elaborating, he said the store will accept donations of fabric, everything from cotton to silk, as well as sewing machines and other goods and equipment, and sell them at steep discounts, thus bringing another unique concept to downtown Holyoke and one that speaks to its storied past in many respects.

Paper City Fabrics, El Paraiso Colombiano, and many other new businesses on High Street and beyond, from City Sports Bar to the Artery, a pop-up shop, to Star Dancers Unity (see story on page 50), are, indeed, part of a wave of entrepreneurship in the city, said Jordan Hart, executive director of the Greater Holyoke Chamber of Commerce.

“There’s a lot of old players in Holyoke — there are many established businesses in many sectors, including manufacturing, which has traditionally been our foundation,” she explained. “But we’re seeing a lot of young, new faces as well, people who are investing in our downtown.”

Tessa Murphy-Romboletti, executive director of EforAll Holyoke and its Spanish equivalent, EparaTodos — an agency that is fueling this wave through accelerator programs, pitch contests, virtual workshops, co-working space, and more — agreed.

She said that the chamber, EforAll, and programs like the Transformative District Initiative, which are funneling dollars into storefront-improvement efforts and other programs, are helping people launch new businesses and then weather the many challenges they will face.

Tessa Murphy-Romboletti (left) and Jordan Hart

Tessa Murphy-Romboletti (left) and Jordan Hart say a surge in entrepreneurship has helped Holyoke’s business community become as diverse as the city itself.

These efforts are also making Holyoke’s business community much more diverse, said both Jordan and Murphy-Romboletti, noting that it looks much like the city itself, with many Hispanics and other minority groups taking on risks and putting their names (figuratively and, in some cases, literally) over the door of buildings on High Street and many other roads.

“Holyoke is such a diverse community, and I think we’re both trying to make sure that our business community reflects our community at large,” said Murphy-Romboletti, who is also an at-large city councilor in Holyoke. “That’s one of the great things about the Holyoke chamber now — you go to one of its monthly networking events, and it looks like the community of Holyoke; it’s very diverse, and Jordan has created a very welcoming environment.”

 

Food for Thought

Juan Uribe was driving a truck when he and other members of his family decided to pool their talents and resources and open El Paraiso Colombiano.

And he still drives a truck in the morning and sometimes during the day depending on how business it is at the restaurant, because … well, because he needs two jobs at this stage in his life, especially as the restaurant continues to emerge and build its brand.

But, like other members of his family, Uribe desired to be in business for himself, and with some encouragement and learning while doing from EforAll, the dream became a reality.

Like many such ventures, it started with a passion that would become a business.

“We were born and raised here in Holyoke, and friends would come around; we’d have little events — my grandmother would make empanadas, and my father would cook, my mother would cook, everyone would just love to be in our house,” he recalled. “So we decided to make it a business; we all love to cook, and this is a family business.”

A restaurant operating at 351 High St. had to shut down because of COVID, he went on, adding that, while the timing may not have been perfect for launching a new eatery, the family took the plunge.

Joseph Charles, left, and Jeff Cattell

Joseph Charles, left, and Jeff Cattell, owners of Paper City Fabrics, are part of a changing scene on High Street.
Staff Photos

“We knew we had a good idea going, so we decided to take everything we had and move ahead,” he said. “We knew that, even though there was a pandemic, people still had to eat, and we thought they would come out and support something new.”

That’s the quick version of the story, he said, adding that many pieces to the puzzle had to come together, obviously, as well as a business plan for bringing that ‘something new’ — authentic Colombian cuisine — to Holyoke and the region.

And the learning while doing continues, he said, adding that working for himself is “a lot of work, but it’s something that I love, something that my brother loves. It’s challenging, and it’s hard, but it doesn’t get any better than this.”

Cattell and Charles offered similar sentiments and similar excitement when it comes to being part of the scene on High Street, which is the logical next step for their venture.

“Shopping for fabric is a tactile experience,” Charles said. “Touching and seeing the colors in person and the textures of the fabric is an important part of the buying process.”

The two had been looking for a storefront for more than a year and eventually settled on 330 High St., across the road from El Paraiso Colombiano, a location that affords them the space they need for their retail operation as well as to process donations and create a classroom for sewing lessons. The space has some history — it was once a popular lunch counter — and some intriguing features, such as tin ceilings and a mosaic tile floor that was hidden by carpeting.

“It’s really cool to be able to restore some of that historical perspective,” said Cattell, adding that it’s also cool to be part of a changing dynamic in downtown Holyoke, which is seeing new businesses across many sectors.

Meanwhile, the chamber, EforAll, and other agencies, such as Nuestras Raices, a grassroots urban-agriculture organization, are working collectively to not only create a pipeline of new businesses like these, but help those businesses survive, thrive, and get to the proverbial next level.

For example, EforAll has, in addition to accelerator programs, a number of virtual programs it calls Deep Dives.

In recent months, such dives have been taken into subjects ranging from “Making It in the Food Business” to “Are You Getting All You Can Out of QuickBooks?” to “How to Use LinkedIn to Grow Your Small Business.”

Meanwhile, the chamber, through its many networking programs, is enabling these new small businesses to make the connections they need to grow their portfolios, while also learning from others facing the same challenges.

Indeed, Jordan told BusinessWest that the chamber has an attractive rate for solopreneurs and small businesses, enabling these ventures to be part of a full slate of events that provide invaluable opportunities to not only hand out business cards but also be an active part of a growing, more diverse business community.

Murphy-Romboletti agreed.

“The chamber has created a very welcoming environment, especially for my entrepreneurs who are not familiar with networking and are often so focused on being in the business and not necessarily working on the business,” she explained. “I think the chamber creates this environment where people can step away from the cash register or step away from the kitchen and connect with the community and build those relationships so they can be successful and really be part of the community; that’s been really valuable.”

In addition to helping individuals start a business and move it to the next level, agencies like the chamber and EforAll are working to get them involved in the community and take ownership of efforts to revitalize High Street and, overall, improve the landscape for business in the city.

“Whether it’s a new business or a business that’s been around for decades, we want them to feel like they have the ability to make change and advocate for what they want,” Murphy-Romboletti said. “We’re really being intentional about creating these spaces for them.”

Uribe said that getting involved in the community has been not just part of the business plan, but something important for the family.

Indeed, they are part of the many festivals that place in the city, and Uribe is the founder of the Paper City Food Festival, which staged its second edition last fall on the section of High Street between Appleton and Dwight streets, attracting more than 20 of the city’s restaurants.

“It’s a way for people to come out and see all that this city has to offer,” he told BusinessWest, adding that he engaged the chamber and started the festival to uplift local businesses and celebrate the community’s heritage and diversity.

 

Bottom Line

There was much to celebrate at last October’s food festival, and, similarly, there is much to celebrate with this city’s business community as it turns 150.

There is diversity. There is change. There is vibrancy. And, overall, there is a wider pipeline of new businesses, entrepreneurs like the Uribe family and Jeff Cattell and Joseph Charles.

Together, they are not just filling storefronts on High Street. They are energizing a city and writing an intriguing new chapter in its long and distinguished business history.

 

Features

Going with the Flow

By Joseph Bednar

bednar@ BusinessWest.com

Old Holyoke Dam

The city of Holyoke’s website details a series of telegrams sent by one James Mills on Nov. 6, 1848 to a group of industrialists in Boston who had invested in the first dam at South Hadley Falls and were eager to hear of its performance.

“The gates were closed and the water filling behind the dam,” Mills reported at 10 a.m. It would be his only happy missive.

Noon: “Dam leaking badly.”

1 p.m.: “Leaks cannot be stopped.”

2 p.m.: “Bulkheads are giving way.”

3:20 p.m.: “Dam gone to hell by way of Willimansett.”

So, it wasn’t the most auspicious way to begin Holyoke’s new direction as a planned industrial city that harnessed the power of the Connecticut River.

But the builders learned from their mistakes — and built a replacement dam. Like the first, it was also made of wood and completed the following summer. This dam still stands, 150 feet underwater, behind the current, modern stone dam that was put into service in 1900.

This bit of history is just one example of Holyoke not only overcoming challenges, but evolving with them along a winding, intriguing, still-evolving story.

The story actually begins much earlier, with the Indigenous tribes who settled there on the rich, alluvial plain, including the Nonotucks, from whom early European settlers eventually purchased the land that would be incorporated into the future boundaries of Holyoke.

Captain Elizur Holyoke is believed to be the first European to explore the future city. In 1633, he led an expedition up the Connecticut River to explore the potential for settlement. Two years later, based upon his report, European agriculture settlement began in the region. Initially concentrated in Springfield, settlers soon began to migrate to the surrounding areas that would later become West Springfield, Chicopee, and Holyoke. Holyoke was then known as Ireland Parish, a name that would remain in common use until 1850.

When Boston investors saw in the parish industrial potential similar to Lawrence and Lowell — and the energy potential of the river — they set out to create an industrial city on a large scale.

In 1847, taking advantage of the broad plain and the 57-foot drop in the Connecticut River at South Hadley Falls, work began on the planned industrial city. Canals, mills, boarding houses, offices, and a dam were all built by pick and shovel. And on March 4, 1850, Holyoke — with its working dam — was finally separated from West Springfield and designated its own town.

“There was some resistance from the farmers who initially didn’t want to sell their land,” said Penni Martorell, Holyoke’s city historian and curator of Wistariahurst. “But eventually [the investors] won out. They just bought the land and then laid out the plan for the city. The flats area was definitely the working man’s area. The middle area around the canals was where the factories were built, and then the highlands were set aside for retail businesses and homes of the wealthier families.”

 

Strength in Paper

Before the planned-city idea got rolling, Holyoke was mainly an agricultural community with a sprinkling of industry, including a lumber mill on the river.

“The investors had had success in Lawrence, in getting mills set up along the river up there. And then they were like, ‘well, where else can we go?’” Martorell told BusinessWest. “Lawrence and Lowell often lay claim to being the first planned industrial cities. We say they worked it out there, and then they perfected it here in Holyoke. They really took advantage of the 60-foot drop in the river, how to harness that energy and then send it through the canals.”

Holyoke’s development was rapid, with its population surging from about 3,200 in 1850 to 45,000 by the turn of the century and more than 60,000 at its peak in the early 1920s. Textiles were the first major product of the city, quickly followed by paper, which became the dominant force in the city. At one time, more than 25 paper mills were in operation.

By 1885, 12 years after its official designation as a city, Holyoke was the largest single producer of paper of any city in the U.S., producing around 190 tons per day, more than double the next-largest producer, Philadelphia, which produced 69 tons per day despite having a population nearly 40 times its size. By 1900, Holyoke would produce about 320 tons per day, predominantly writing paper, led by American Pad & Paper Co., American Writing Paper Co., and others.

Holyoke also built schools, churches, parks, and many public buildings, including the historic City Hall (see story on page 28). By the turn of the century, Holyoke exerted considerable influence on American life. The Holyoke Opera House was the test location for Broadway plays before moving on to New York. The Easter parade here drew as many spectators as on Fifth Avenue.

A number of industrial inventions arose out of the city in the late 19th and early 20th centuries. The first and most prominent hydraulic testing lab in the U.S., Holyoke Testing Flume, performed 3,176 tests to establish turbine efficiency from 1870 to 1932. Other pioneering developments included the first use of Hans Goldschmidt’s exothermic welding process in the Americas in 1904, by George Pellissier and the Holyoke Street Railway. In electronics, the world’s first commercial toll line, between the city’s Hotel Jess and a location in Springfield, entered service in 1878. Holyoke was also home to Thaddeus Cahill’s New England Electric Music Co., which, in 1906, demonstrated the telharmonium, the world’s first electromechanical instrument, a predecessor of the synthesizer.

Meanwhile, the availability of water power enabled Holyoke to support its own electric utility company and maintain it independently of America’s major regional utilities. The city was thus a rare unaffected area in the Northeast blackout of 1965.

But the city’s second century has been a complicated story, Martorell said.

“It was boom and bust. So every time there was a bust, the wealthier people were able to prepare for that. But the lower-income people were not able to prepare. They would move on to wherever there was work. So it was a bit of transience at certain points. The paper industry kind of morphed into other industrial spaces.”

 

Northern Migration

Beginning at the end of World War II, the city’s demographics began to change, as an influx of Puerto Ricans and other Latino groups began to migrate to the Northeast U.S., driven largely by the Farm Labor Program initiated by the U.S. Department of Labor, which recruited Puerto Rican laborers to work on agricultural land; in the case of Holyoke, many worked on tobacco farms and arrived in the city in search of better job opportunities at the mills, as previous generations had.

“In Springfield and Holyoke, housing was inexpensive, you had access to 91 and 95, and a lot of them had an agricultural background and were looking for farm work,” Martorell said of the Puerto Rican influx. “So between Hatfield and the tobacco fields along the Connecticut River, they were able to find work pretty quickly once they got here.”

By 1970, the number of Puerto Rican residents numbered around 5,000; however, by that time, many faced a city economy that was struggling. Holyoke’s mills had closed due to the changing economic landscape of early globalization and deindustrialization; from 1955 to 1970, half of all industrial jobs vanished. Despite economic and social difficulties, however, the population grew significantly, and today Latinos form the city’s largest minority group, with the largest Puerto Rican population per capita of any American city outside Puerto Rico proper, at 44.7%.

As for those old industrial buildings, their use is evolving.

“The Skinners, who made silk, sold their company to Indian Head Mills, which was a conglomerate going around buying up textile mills in the late 1950s or early 1960s. They bought the company and then shut it down a few years later,” Martorell said. “And many of the other paper companies had already gone out. Parsons Paper was the first paper company in Holyoke, and they closed their doors in 2005. So that was a pretty good run.”

A few specialty paper and printing companies remain, but today, many of the old mills along the canals are being repurposed, from cannabis cultivation, manufacturing, and retail operations to the entertainment venue known as Gateway City Arts.

Martorell said change has been a constant in Holyoke, but so has a feeling of promise.

“People in Holyoke love Holyoke. People are committed to being here, and they want to see good things happen for the city,” she told BusinessWest. “And I think the last two mayors have really tried to make an effort to rebrand the city in a more positive way and say that the challenges that we’ve had in the past have made us stronger and more diverse. So we embrace that and celebrate that.”

 

Some information for this article was adapted from the city of Holyoke’s written history and from Wikipedia.

Opinion

Editorial

 

The numbers are alarming — on many levels.

From July 2021 to July 2022, more than 57,000 more people moved out of the state than into it, one of the highest rates of what is being called ‘domestic outmigration’ in the country. And if you go back to April 2020, the number soars beyond 110,000.

That’s a lot of people who decided they couldn’t make it in Massachusetts anymore, or didn’t want to try. And these numbers should get everyone’s attention, because these departures are not good for individual cities and towns, or for the Commonwealth’s technology-driven economy.

It’s enough of a problem that Gov. Maura Healey made it one of the focal points of her inaugural address last month, stating “this is greatest state in the union, but people are leaving at some of the highest rates in the country — giving up on the Massachusetts story.”

It’s possible that some people are giving up because of the cold (and we don’t even have as much of that as we used to), or the traffic (in the Boston area), or the decidedly liberal nature of the State House, or even the ‘millionare’s tax.’ This might explain why more than 20,000 of those who have left have moved to New Hampshire, where taxes are much lower and elected leaders are much more conservative.

But it seems clear that most are leaving because they simply can’t afford to live here anymore.

That’s especially true in the eastern part of the state, where taxes are sky-high, home prices are through the roof, and other costs, including childcare, are becoming increasingly prohibitive.

“Affordability in Massachusetts has dropped dramatically,” Nadia Evangelou, senior economist for the National Assoc. of Realtors, told the Boston Globe recently.

We have a few thoughts on this problem. First, state leaders need to do something to address the housing problem here. The term ‘affordable housing’ has a shifting definition in Massachusetts and other states where there are plentiful, attractive jobs, but however it is defined, the state simply needs to create more of it. If it doesn’t, more people will leave or, in the case of graduating college students, settle somewhere else.

In the meantime, economic-development leaders in Western Mass. should double down on their efforts to try to convince people that if they want to escape the high prices (if not the cold), they don’t have to leave the state; they just have to look west of Worcester.

Indeed, while some communities in this part of the state are expensive, most are quite reasonable. And there isn’t nearly as much traffic. And the costs of childcare are considerably lower. And with the advent of remote work, you can have all of this and still work for IT and financial-services companies based in Boston or Cambridge.

Those of us Western Mass. know all this, and most people living in Newton, Wellesley, or Lexington know as well, but it wouldn’t hurt for this region to market itself more aggressively, especially in the eastern part of the state.

Doing so would benefit not only the Western Mass. region, where many communities have lost population and professionals of all kinds are needed, but the state as well.

Indeed, until ways can be found to somehow make this state, and especially the Boston area, more affordable, we need to focus on ways to inspire people to move from one end of the state to the other, instead of out of it altogether.

Law

Five Important Things to Know Going into 2023

By Amelia J. Holstrom, Esq. and John S. Gannon, Esq.

 

Massachusetts employers are used to the ever-changing employment-law landscape. As we close out another year and ring in a new one, it is clear that 2023 will bring new challenges and new requirements for employers throughout the Commonwealth.

AMelia Holstrom

Amelia Holstrom

John Gannon

John Gannon

We’ve rounded up the top five things employers need to know and keep an eye on as we turn the page to 2023.

 

Decision on Micro-units May Be Troubling for Employers

When a union attempts to organize a group of employees at a business, it files a representation petition with the National Labor Relations Board (NLRB), identifying the proposed bargaining unit, which is the group of employees the union seeks to represent and who will be eligible to vote on whether it gets to do so. Sometimes, employers will seek to add additional employees to the union’s proposed bargaining unit, as larger proposed bargaining units may be favorable for employers in representation elections.

In a recent decision, American Steel Construction, the NLRB, which interprets and enforces the National Labor Relations Act (NLRA), gave a powerful tool to unions by clearing the way for small bargaining units, often called ‘micro-units.’ Specifically, the board decided that it will approve a smaller subdivision of employees as a bargaining unit if they meet certain criteria.

Under this standard, unions are likely to be very successful in getting the NLRB to approve micro-units. As a result, employers are placed at risk of having to bargain with several small units of employees in one workplace.

 

NLRB to Surveil Employers’ Surveillance Measures

Businesses regularly monitor employees in the workplace. For example, employers may monitor telephone calls for quality-assurance purposes, install cameras in the workplace or dashcam systems in vehicles, or monitor communications sent and received on employer-owned devices. Such monitoring appears be under attack by the NLRB.

In early November 2022, the general counsel of the NLRB issued a memorandum regarding employee surveillance, in which she urges the NLRB to adopt a “new framework” for determining whether employer surveillance violates the law. Under this framework, violations may occur when the surveillance would tend to interfere with an employee’s rights under the NLRA or “prevent a reasonable employee from engaging” in activity protected by the NLRA.

“In a recent decision, American Steel Construction, the NLRB, which interprets and enforces the National Labor Relations Act (NLRA), gave a powerful tool to unions by clearing the way for small bargaining units, often called ‘micro-units.’.”

This could involve employee surveillance of suspected organizing activity. The employer will then get the opportunity to explain their legitimate, business-based reasons for the surveillance. At that point, the new proposed framework would require the NLRB to weigh the employer’s business needs for the surveillance against the rights afforded to employees under the NLRA. If the NLRB determines that the employer’s reasons outweigh the rights of employees, the NLRB will require the employer to disclose all electronic monitoring, the reasons for doing so, and how the employer uses the information it obtains. This crackdown on employee surveillance impacts unionized and non-unionized workplaces alike.

 

Update That Handbook for New Protected Characteristics

Massachusetts law prohibits employers from discriminating against employees based on a number of protected characteristics, including but not limited to race, color, sexual orientation, and gender identity. Effective Oct. 24, 2022, Massachusetts added natural and protective hairstyles to the list of protected characteristics under the law.

Accordingly, employers need to update their handbooks and other policies to reflect the additions. Your handbook should also include language on many other employment laws, including the state Paid Family and Medical Leave Act.

 

Changes to Paid Family and Medical Leave

Speaking of the Massachusetts Paid Family and Medical Leave Act, last month the Department of Family and Medical Leave released updated model notices reflecting new contribution rates effective January 1, 2023. If you have not already done so, those new notices need to be distributed to your entire workforce as soon as possible. Employers should also ensure that their payroll providers are planning to implement this change.

The department also updated the mandatory PFML workplace poster, which should be posted in a location where it can be easily read by your workforce. The poster must be available in English and each language which is the primary language of five or more individuals in your workforce, if these translations are available from the department.

The department is also considering changes to the PFML regulations intended to clarify employer obligations to maintain employment-related health-insurance benefits while employees are out on leave. Stay tuned in 2023 for developments on these proposed regulations.

 

Speak Out Act Requires Changes to Employment Agreements

On Dec. 7, 2022, President Biden signed the Speak Out Act into law (see story on page 27). The new law prohibits employers from including non-disclosure and non-disparagement provisions applicable to sexual-assault and sexual-harassment allegations and claims in agreements executed before the allegation or claim arises. It does not impact agreements with those provisions entered into after such a claim arises.

Although it may seem insignificant because it only applies to pre-dispute agreements, employers need to carefully review their confidentiality, employment, and other agreements executed by employees and ensure that the non-disclosure and non-disparagement paragraphs in those agreements do not prohibit the employee from disclosing or discussing sexual-assault or sexual-harassment allegations or claims. Employers would be prudent to include language carving out those claims.

Businesses are encouraged to continue to consult with counsel regarding these changes in labor and employment laws. The team at Skoler Abbott also wishes readers a happy and prosperous new year.

 

Amelia Holstrom and John Gannon are attorneys at Skoler, Abbott & Presser, P.C. in Springfield; (413) 737-4753; [email protected]; [email protected]

Cover Story Women in Businesss

Grass-roots Effort

 

‘Buy Weed from Women.’

That’s what is printed on the back of the coat

Meg Sanders

Meg Sanders

was wearing as she led BusinessWest on a tour of Canna Provisions’ Holyoke dispensary recently.

Those words cover a lot of ground. They’re a request, as well as a statement. They’re also an operating philosophy. And in some respects, they constitute hope for what people will be able to do more easily in the future.

Indeed, buying weed from women — as in women who own or co-own the dispensary in question — is not something easily done. The startup and operating costs for such an operation are extremely high and, for many people — and most women — simply prohibitive. And once one is in, it’s a challenge to stay in.

Sanders, CEO of Canna Provisions, is one of the rare exceptions.

She shifted her career from compliance in financial services to compliance in cannabis while living in Colorado at the time the industry was simply exploding and turning into what she called ‘the wild west.’ She is now a prominent player in the not-so-wild but very intriguing Western Mass. market, overseeing, with her partner, Erik Williams, two dispensaries (the other is in Lee) and a cultivation facility in Sheffield.

Moving forward, she envisions one more dispensary in Western Mass. — she and Williams are looking at several options for acquisition — and the buildout of another manufacturing facility in Lee. And from a bigger-picture perspective, Sanders is looking to hone a business model that will create more profitability in an industry where only a third of all busnesses are profitable.

“ I still believe the best thing in cannabis still has not been invented. We find new cannabinoids every single day; there are new ways to consume this product, new delivery methods, new formulations. Those are all really important parts of where this industry is going. Science is in it, and I am psyched to see the products we come up with to help people.”

When asked about what separates those who are profitable from those who are not, Sanders said it comes down to being smart — with everything from which products (and how much inventory) are carried to the training and development of employees.

“We invest in humans, and we train them,” she said, adding that people are the biggest and most important investment for a company in this sector.

It’s an investment she takes very seriously, and it’s one of the many reasons why she believes Canna Provisions is successful and on the cutting edge when it comes to everything from how products are displayed and sold in the dispensary to how employees are trained, groomed for advancement, and ultimately retained (more on all that later).

“I’m really proud of it — I think it’s the coolest dispensary in America,” she said of the Holyoke facility as she led the tour. “And I’ve been into a lot of them.”

Canna Provision’s dispensary in Holyoke

Meg Sanders says Canna Provision’s dispensary in Holyoke has been designed to resemble an art gallery — and even features works from local artists.

And as she surveys the scene, at that Holyoke location and within the broad cannabis industry, Sanders, who has been quoted in publications ranging from the Wall Street Journal to Northeast Leaf, sees a number of converging forces and trends, but especially innovation, the sector’s deep impact on the local economy and the local landscape, cannabis playing a growing role in the health and wellness of people of all ages, and the promise of much more of all of that in the future.

“Cannabis is a giant vote for freedom — it’s a giant vote for ‘you know what’s best for your body; it’s not the government’s job to tell you what to put in it, on it, any of that,’” she said. “From everyone that I know that uses cannabis, customers I talk to every day, their life is better. A recent study showed that 60% of Millennials use cannabis for wellness, and when you ask them to define ‘wellness,’ it was stress, relaxation, sleep, and anxiety. The fact that people look at cannabis as wellness is huge.

“And I still believe the best thing in cannabis still has not been invented,” she went on. “We find new cannabinoids every single day; there are new ways to consume this product, new delivery methods, new formulations. Those are all really important parts of where this industry is going. Science is in it, and I am psyched to see the products we come up with to help people.”

The wording on the back of Meg Sanders’ jacket

The wording on the back of Meg Sanders’ jacket is both a request and a bit of hope for what people will be able to do more easily in the future.

For this issue, BusinessWest talked at length with Sanders about her business, her industry, the words printed on the back of her jacket, and what she expects to come next with all of the above.

 

Joint Ventures

That aforementioned tour of Canna Provisions came the Wednesday before Thanksgiving. It was late morning, just before noon, and the traffic in the store was still relatively light, with a handful of customers exploring the myriad product options or talking to customer-service providers, both behind the counter and on the floor.

But Sanders was expecting a huge day because cannabis, in her estimation, is becoming a growing part of Thanksgiving, especially to contend with the week’s large doses of stress.

“People will be in to get their coping mechanisms and their celebratory pieces so they can deal with Uncle Bob, who might be talking politics at the Thanksgiving table,” she explained. “We all have families, and they’re all very interesting and come with a lot of stuff; this is one way to cope, and it’s not new.”

Meanwhile, she was expecting even bigger crowds for the upcoming Black Friday and the holiday season in general. And such expectations, born from experience in both Colorado and this market, are evidence of the growing influence of cannabis — on the economy and in people’s lives.

Turning back the clock nearly 15 years, Sanders, as noted earlier, was working for a small financial-services company handling a few dozen traders when she approached a friend who was getting in on the ground floor of the exploding cannabis scene in the Centennial State and asked if he could find a place for her.

“I had definitely hit a glass ceiling — there was nowhere else to go and no more money to be made there,” she recalled. “That was happening at the exact same time as this brand-new industry was starting to explode; I reached out to my friend who was creating this cannabis business and said, ‘I’d love to help you guys; what can I do?’

“It took a while for us to find the right place, but I went basically from compliance in the financial industry to compliance in cannabis, and that’s how I got started,” she went on, adding that she became increasingly more involved and eventually become CEO.

Sanders would eventually exit that company — primarily because its board wanted to focus solely on Colorado, while she had larger aspirations for the venture — and work, along with Williams, as a consultant to states, municipalities, and individual businesses as they entered the cannabis business.

“We were helping companies and state regulatory bodies and local governments come up with ordinances that made sense, regulatory frameworks that made sense, and helping people get licensed all over, from Florida to Illinois to Nevada — everywhere,” she recalled. “And then, Massachusetts legalization happened, and we were intrigued by the model in that it wasn’t going to be this massive gaming of the system in a limited-license structure, where if you know the governor, or have the right lobbyist, or if you make donations to the right legislators, you get a license.”

Sanders and Williams eventually consulted for a venture called Canna Provisions and were invited to become part of its operations team. They became CEO and COO, respectively, and guided the company as it gained just the second license issued by the state for a standalone dispensary in Lee, right behind Caroline’s Cannabis in Uxbridge — where she bought her jacket from owner Caroline Frankel. The Holyoke facility, located on Dwight Street in a former paper mill, opened in July 2020, at the height of the pandemic.

In her role, Sanders is involved in all aspects of the business, obviously, but devotes much of her time to staff development and that broad term ‘culture.’

‘At Canna Provisions, we really believe that we’re not just growing plants and growing a business, we’re growing humans,” she explained, adding that the company invests considerable amounts of time, money, and energy to train and develop employees, and then give them opportunities to do different things and advance within the company.

Canna Provisions invests heavily in employee training and development

Meg Sanders says Canna Provisions invests heavily in employee training and development — and the customer experience.

She said she’s currently serving as a facilitator and working with a group of seven employees at the company on a course of leadership training.

“I’m reinforcing my skills by teaching them their skills in hopes of growing humans to become better leaders, which creates happier employees,” she told BusinessWest, adding that most all of these employees have experience in business and customer service but are new to this industry.

“We work really hard to train employees, we spend a lot of money training them, and it’s ongoing,” she went on. “We’ve been told multiple times by people from this industry, and also not from this industry, that they’ve never been to a company that invests so much in training, and they appreciate it.”

 

Down to an Art

While Sanders is certainly well-known within the industry and probably recognized by many she encounters (especially when she shows her ID), she still calls what she does ‘secret shopping.’

These are regular visits to dispensaries across this region and beyond, during which she is always looking at the product mix, the presentation, the staff, and how they interact with customers — all with an eye toward making her own operations better and her own employees ever more responsive to what clients want and need.

“I shop everybody — everybody,” she said, “so that we’re more accurate in our differentiation. I’m able to see what competitors around us are doing, and I can say, ‘that’s one business model — it’s not a bad business model, it’s just not my business model.’”

“We’ve been told multiple times by people from this industry, and also not from this industry, that they’ve never been to a company that invests so much in training, and they appreciate it.”

These secret shopping excursions are just a small part of a broad operating formula aimed at continuous improvement, setting the bar higher, and then clearing that bar.

Sanders believes Canna Provisions does all this in all aspects of its business — from product selection to presentation, but especially with how those on the floor and behind the counter interact with and effectively serve customers, some of whom may suffer from what she called “dispensary phobia,” and a fear of going inside.

And this is a product of all that intensive — and expansive — training that Sanders talked about earlier.

“People have to be on point because your customers expect a certain level of service — they have to know the products,” she said. “It’s training and role playing and practicing and coaching on the floor — teaching them to be more aware of the people who are in front of them.

“This is not a cheap spend, “she went on. “Our average ticket here in Holyoke is close to 100 bucks a pop. When I’m spending $100 or $200 at a location, I do have a bit of expectation to be treated well.”

Overall, she likened the cannabis-buying experience, at least at her dispensaries, to jewelry shopping in many respects, from the high cost of the products to the way that many customers need guidance, or education, on what they’re buying.

Overall, Sanders believes she and Williams have created a different kind of cannabis experience in their locations. The one in Holyoke resembles an art gallery in the way products are displayed, and there are even works of art on the wall. Meanwhile, it pays homage to the property’s roots as a paper mill by putting some of the equipment and office furniture to work in displays.

 

Impact Statement

As she talked about the broad influence that cannabis has had on the local landscape, and will continue to have moving forward, Sanders again flashed back to the early days in Colorado, which came in 2009, the middle of what became known as the Great Recession.

“They just ran with cannabis, and it was crazy,” she said of the rapid growth of the industry and its impact on real estate, cities, towns, and individual neighborhoods. “And this started right after that massive crash and its impact on real estate and mortgages … it was a nightmare. But in Colorado, the opposite happened because all these growers, all of these dispensaries, ended up leasing more than 1 million square feet of warehouse space that had been off the tax rolls for years, just in Denver.

“So, it immediately just infused the city with vibrancy, and it happened all over,” she went on. “It was just one of those interesting economic moments where Colorado did not feel that economic downturn, the bottom dropping out, nearly as much as other states; it was fascinating. And then we kept adding all these jobs, and we kept adding jobs, and building, and then science was involved; the industry just came a long way really fast.”

It continues to grow and evolve, and now, much of what was seen in Colorado is being experienced in other states and other region, including Western Mass., she said, adding that cannabis is having a profound impact on communities like Holyoke and Lee, where she has chosen to put down roots, especially the former.

Indeed, this was a city that rolled out the red carpet for this industry, with its former mayor, Alex Morse, jokingly — although it was no joke — wishing it to become known as Rolling Paper City, a twist on its original nickname, Paper City.

Few actually call it that, but Sanders said there is no disputing the profound impact that cannabis has had in this city, where hundreds of thousands of square feet of unused or underused former mill space has been converted into dispensaries and cultivating facilities.

“Bringing more people to Holyoke is the goal for all of us,” she said. “And I think Holyoke and its bones often get overlooked; I’m so excited that there’s a new art gallery opening on High Street, that there’s several restaurants that we frequent and another new restaurant going in across the way. We have Gateway City Arts, which does concerts all the time. So, there’s momentum, and we’re hoping to be a part of that and help a city that’s been struggling for a long time.

“Together, we’re all going to make Holyoke a better place, with more jobs, more places to live, more restaurants to go to, more shopping, art,” she went on. “I absolutely love this town, and that’s why we came here and spent $1 million to open this dispensary.”

Looking ahead, Sanders wants to see a day when more women can become business owners in this sector.

“It’s very much a closed door, and the numbers are actually going down, which is unfortunate,” she said, noting, again, the sky-high costs of opening and then operating a business in this sector, and the challenge to turn a profit when 70 cents of every dollar earned is returned to the government in taxes.

“Through initiatives at the state level and maybe even at the federal level with safe banking and other things they’re talking about, we need to give minorities and women an opportunity to win alongside all the rich, white money,” she told BusinessWest. “As a female leader in this space, I am super proud to be in this space as a leader and an owner, and I would say it’s one of my biggest motivators to talk about this and do something about it.”

 

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

Opinion

Editorial

 

Just about all the dust has settled from this November’s election — finally, and thankfully. And now is the time for analysis.

And while much of the focus is on the national scene and what the results from this midterm election mean moving forward, what happened in the Bay State, where there was no suspense, is also intriguing and worthy of note.

In short, it was a milestone day for women — and the state itself.

Indeed, women won five of the six state-wide seats up for grabs. Maura Healey, the first woman elected governor of the Commonwealth (and the first openly lesbian governor in the U.S., a milestone she shares with Oregon Gov.-elect Tina Kotek), garnered much of the attention, but she was only part of the story.

Healey’s running mate, Salem Mayor Kim Driscoll, was elected lieutenant governor; Deb Goldberg was re-elected treasurer; Andrea Campbell became the first Black person elected attorney general; and Diana DiZoglio was elected auditor.

Longtime state Auditor Bill Galvin was the only man to win statewide office, and he defeated a woman, Rayla Campbell, in doing so.

So what does all this mean? First of all, more women are being elected to these offices because more women are running for these offices, which is a very positive step forward.

Before Tuesday, only nine women had served in the constitutional offices in the state’s history, and that’s largely because comparatively few women had the desire, the wherewithal, the confidence, and, in many cases, the support to seek such offices.

All that has changed in recent years, and we’re seeing it not just with statewide offices, but local offices as well. Michelle Wu became the first woman elected mayor of Boston this past year, and locally, several cities now have women in the corner office, including Easthampton and Pittsfield.

There are many reasons why more women are stepping forward and running for office, including a host of leadership programs, including several locally that encourage individuals to get involved, be active in their cities and towns, and, yes, take leadership roles.

Whatever the reason, getting more women — and more people of color and people with diverse backgrounds — involved in government, on both the local and statewide levels, can only be good for everyone involved because it means that more voices, and different kinds of voices, are being heard.

We’ve seen this in business, of course, and with very positive outcomes. Today, more women are sitting on the boards of major companies and nonprofits, more women are leading companies, and more women are taking leadership positions in realms once dominated by men, including construction, architecture, and even IT, although that is one sector where women are still looking to break through in large numbers.

Someday, perhaps not that far into the future, seeing women take five of the six — or even all six — of the Commonwealth’s constitutional offices won’t even be newsworthy. It’s only newsworthy now because it’s never happened before.

And it’s very positive news indeed, and a huge step forward for Massachusetts and all its residents.

 

Community Spotlight

Community Spotlight

Pittsfield Mayor Linda Tyer

Pittsfield Mayor Linda Tyer says the city has made great strides when it comes to growing and diversifying an economy once dominated by GE.

It’s called ‘Site 9.’

This is a 16-acre parcel within the William Stanley Business Park, created at the site of the massive General Electric transformer manufacturing complex in Pittsfield, which closed nearly 30 years ago.

The site has been available for development for more than two decades now, said Linda Tyer, Pittsfield’s mayor for the past seven years, but there have been no takers because, in a word, this site is ‘intimidating.’

“Every time we host a business and we identify this as a potential location, they look at it, and they’re instantly intimidated because of the condition that’s in,” she explained. “It’s a big scar in the heart of our community that’s a remnant of our past. People have looked at it, and they’ve just said, ‘I can’t envision my business here.’”

Gov. Charlie Baker was in the city a few weeks ago to hand-deliver a $3 million check that might change this equation. The money will go toward infrastructure work, putting new roads in, greening the space, and other measures that will make this parcel more shovel-ready and, ultimately, a part of this city’s future, not merely its past.

“If we don’t get any interest for the next 10 years, at least it’s not this giant wound in the heart of our city,” Tyer went on, adding she is expecting plenty of interest in the years to come.

Site 9 is where we begin our look at Pittsfield, the latest installment of BusinessWest’s Community Spotlight series. This is a city that has been trying to move beyond its past, and the dominating influence of GE on just about every facet of everyday life, since the company left. And in many ways, it has been making great progress.

Its economy is far more diverse and far less dependent on one company or one sector, said Tyer, adding that this was quite necessary given the devastation and outmigration that occurred when GE pulled up stakes. Today, the city boasts a few large employers — such as Berkshire Health Systems and General Dynamics — but the economy is dominated by small businesses across several sectors including manufacturing, IT, healthcare, and especially tourism, hospitality, and the arts.

Those latter categories now provide a good number of jobs and have contributed to a rebirth of North Street, the main thoroughfare in the city, after it was decimated by GE’s departure, said Jonathan Butler, president and CEO of 1Berkshire, a county-wide organization focused on economic development and promotion of the region.

“The Pittsfield of 2022 is a completely different city than it was 20 years ago,” he said, adding that a strong focus on the arts and hospitality has changed the narrative in this community.

The pandemic obviously took a heavy toll on these businesses and the overall vibrancy of Pittsfield, said Butler, but it has managed to come almost all the way back this year, with the arts venues rebounding and hospitality venues back to something approaching normal.

James Galli, general manager of the Hotel on North, so named because it is on North Street, agreed. He said the hotel is on pace to have its best year since opening in 2015, and the mix of guests that it attracts provides some good insight into Pittsfield and what now drives its economy.

“The Pittsfield of 2022 is a completely different city than it was 20 years ago.”

“We get a lot of travelers coming in from Boston and New York to go to Barrington Stage and the Colonial Theatre,” he said, citing two of the main cultural draws in the city. “We get a lot of millennials coming in for hiking and the beauty of the area, some business travelers coming in for General Dynamics and some of the area businesses in town — and it’s a good mix. We are the center of the Berkshires, so we get people staying with us for two, three, four days at a time; they’ll go down to South County or up to North County or into the Pioneer Valley, but they’ll stay with us because we’re very central and they can do a lot more if they stay with us.”

In some ways, the pandemic has actually benefited the Berkshires and especially its largest city, said those we spoke with, noting that the remote-work phenomenon has made it possible for those working for businesses in New York, Boston, and other expensive metropolitan areas to do so from virtually anywhere.

And with its high quality of life and (comparatively) low real-estate prices and overall cost of living, Pittsfield has become an attractive alternative, said Tyer, noting that the city is in the midst of a housing boom that has slowed only slightly even in the wake of rising interest rates and persistently high prices.

 

The Next Chapter

It’s called the ‘Library Suite.’

This is the largest suite among the 45 guest rooms at Hotel on North, and easily the most talked about. That’s because, as that name suggests, it’s decorated with books — some 5,000 of them by Galli’s count.

“There’s a moveable ladder, and … it looks like a library,” he told BusinessWest. “There’s everything from full sets of encyclopedias to children’s books, the Harry Potter collection; we’ve found them at tag sales over the years and made it into a unique, different type of room. It speaks for itself.”

Jonathan Butler

Jonathan Butler

“Pittsfield has benefited from planting its flag in the cultural and arts scene in the Berkshires; that’s a huge part of our growing economy and has been for the past 10 to 15 years.”

The library suite, which boasts about 850 square feet and goes for as much as $700 a night, depending on the season, has been occupied most every night over the past several months, said Galli, noting, again, that visitors of all kinds are coming back to Pittsfield, and to this hotel, which was created out of two historic buildings on North Street.

Business started to pick back up in June 2021 as the state essentially reopened, he said, and momentum continued to build into this year, which has yielded better numbers than the years just prior to the pandemic.

He attributes this to many factors, including some pent-up demand for travel and vacations as well as the unique nature of the hotel, which has several different kinds of rooms, each of them is unique.

“A lot of people are looking for a hotel that’s a little different — a boutique or independent hotel,” he said. “There’s a clientele that goes for the branded properties, but the people who stay with us are looking for that unique experience when they walk in the door.”

But Galli also credits Pittsfield’s resurgence in recent years, especially its cultural attractions and other quality-of-life attributes, making the city a destination for people of all ages.

Hotel on North is part of a new look and feel on North Street, said Butler, noting that the well-documented vibrancy of the GE chapter in the city’s history was followed by the dark and dismal time that he grew up in: “North Street was not a place to be in the ’90s.” The vibrancy has returned in the form of cultural attractions and new restaurants and bars.

“Pittsfield has benefited from planting its flag in the cultural and arts scene in the Berkshires; that’s a huge part of our growing economy and has been for the past 10 to 15 years,” he told BusinessWest. “You have investments like Berkshire Theatre Group with their theater in downtown Pittsfield, and Barrington Stage Company, which has become a major anchor, as well as a number of smaller cultural offerings and pop-ups and galleries in downtown Pittsfield.

“And this has been further bolstered by the emergence, over the past eight to 10 years, of a vibrant food scene — an exciting, trending type of food environment,” he went on, citing establishments, new and old, like Methuselah Bar and Lounge, Berkshire Palate (located in Hotel on North), Pancho’s Mexican Resaurant, Trattoria Rustica, Flat Burger Society, Patrick’s Pub, and Otto’s Kitchen & Comfort.

“There’s some finer dining options — downtown Pittsfield’s a great place to go host some clients if you’re a business or to have a good date night as a couple or a fancy night out with friends,” Butler explained. “But there’s also a lot of great casual offerings in downtown Pittsfield; there’s some great pubs, some great cocktail lounges. There’s also a lot of immigrant-owned businesses in downtown Pittsfield, which adds to the diversity and provides a more rich experience.”

 

At Home with the Idea

This diversification and strengthening of the city’s economy has become the main economic-development strategy for Tyer since she became mayor.

“I have some family history with General Electric — my great-grandparents were part of the GE economy,” she told BusinessWest. “And when I became mayor, I felt strongly that the economy cannot be dependent on one sector; my priority has been that we have diversity in the economy, and that includes everything from the travel, tourism, and hospitality sector to the cultural economy, and it also includes manufacturing and science and technology.”

To attract businesses across all these sectors, and to help existing companies expand, the city has created what Tyer calls its ‘red-carpet team,’ a name that hints strongly at its mission.

Pittsfield at a glance

Year Incorporated: 1761
Population: 43,927
Area: 42.5 square miles
County: Berkshire
Residential Tax Rate: $18.56
Commercial Tax Rate: $39.90
Median Household Income: $35,655
Median family Income: $46,228
Type of Government: Mayor, City Council
Largest Employers: Berkshire Health Systems; General Dynamics; Petricca Industries Inc.; SABIC Innovative Plastics; Berkshire Bank
* Latest information available

“We want to make sure that businesses that are here now, that are homegrown and might want to expand into a new market, expand their facilities, or grow their employment base, have the same level of support from the city of Pittsfield as we would give to a new business that wanted to start up in the city,” she explained. “We’ve been successful at balancing that approach.”

The red-carpet team consists of a number of city department leaders who work collectively to help counsel and guide a new or existing business toward fulfillment of whatever goal they might have. This integrated process enables a CEO to have one meeting, rather than several, said Tyer, adding that having everyone seated around one table enables the city to be more responsive and move more quickly.

And, overall, there have been a number of interested parties, she said, noting that the Berkshires, and Pittsfield, has a lot to offer employers, including quality of life and lower cost of living, as well as a population that is stabilizing, rather than declining, as it had been for decades.

“We have great neighborhoods, we’re still affordable, and we have beautiful outdoor recreation,” she said. “The combination of all of that is the magic that Pittsfield has going into the future.”

Much of this magic became even more forceful during the pandemic, said those we spoke with, noting that, while most hospitality-related businesses had to shut down for an extended period, the Pittsfield area’s outdoor recreation and quality of life came more into focus for many looking to escape what COVID brought with it.

The hiking trails became even more popular, and the Berkshires — and its largest city — became an attractive alternative for those looking to escape larger cities, their congestion, and their higher costs.

“Our housing market has been on fire,” said Tyer, noting that many professionals from Boston, New York, and other major cities have moved to the Berkshires. “And I think it speaks to this phenomenon that people can be employed by a Boston firm but work from home here in Pittsfield and have all the amenities and quality of life of a small city in a beautiful region of the state.”

The housing market shows no signs of slowing, said those we spoke with, despite rising prices and, more recently, soaring interest rates as a result of Fed action to stem the tide of inflation.

“There’s still this competition, these bidding wars, for homes,” Tyer said. “And the seller is still selling; the market hasn’t really slowed down.”

This phenomenon has led to an increase in the value of homes across the city, she went on, adding that this brings benefits on many levels — everything from the city’s bond rating to its tax rate. It also creates some problems for first-time homebuyers and those looking to trade up, and rising prices within the rental market as well, creating shortages of what would be considered affordable housing.

But in the larger scheme of things, these would be considered some of those proverbial good problems to have, said the mayor, especially in a city that had seen so much hardship over the previous 30 years.

 

The General Idea

The sports teams at Pittsfield High School are still nicknamed the Generals, said Tyer, adding that this just one of the myriad ways to measure the influence that GE had in this city for the better part of a century.

But while the city can still pay homage to its past in this and other ways, it has managed to move past it in almost all others.

Yes, Site 9 and many other parcels that were part of the massive complex remain undeveloped, but overall, Pittsfield and its economy have moved on. It took some time, as it does when a city loses an employer of such magnitude, but the city’s economy, like North Street itself, has been reinvented, and vibrancy has returned.

“We’ve overcome that group depression that we all suffered, and I think there’s a lot of excitement around the art and culture economy; the small-business, science, and technology economy; and some long-standing businesses that have grown since my time in public service,” she told BusinessWest. “I think we’ve overcome the ‘we’re a dying community because we lost GE’ sentiment, and I think we’re a growing, emerging community.”

 

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

Health Care

Crisis State

Cristina Rivera and Dr. Katie Krauskopf

Cristina Rivera and Dr. Katie Krauskopf say recovery is often a winding process marked by frustrating times and bumps in the road.

 

Christine Palmieri has read the numbers regarding a spike in overdose deaths in Massachusetts over the past couple years. But to her, they’re not just numbers.

“My role is to oversee our community-based programs that work with people who have experienced mental-health issues, substance-use disorders, and homelessness. As part of that, we run residential recovery programs for people who have a dual diagnosis, and we also run a number of different housing programs for people in recovery,” said Palmieri, vice president of Recovery and Housing at the Mental Health Assoc. (MHA) in Springfield. “And over the past year, maybe two years, we as a program have experienced more deaths by overdose than at any other time in my career.

“That’s troubling. There’s definitely times when it feels very hopeless and very frustrating, but I think our programs have done an excellent job of showing up every day, meeting people where they’re at,” she went on. “One of our programs is called GRIT, and that’s how I would describe what we need to keep coming back every day, and what the people we’re supporting in recovery need to keep coming back every day.”

After several years of decline, the rate of opioid-related overdose deaths in Massachusetts increased by 8.8% in 2021 compared to 2020, according to a June report by the Massachusetts Department of Public Health. Drug-overdose deaths in Massachusetts continue to trend lower than nationwide figures, but the statistics are still startling, with the rise in death rates reflecting the effects of the COVID-19 pandemic and an increasingly poisoned drug supply, primarily with the powerful synthetic opioid fentanyl.

“Massachusetts and the rest of the country have definitely seen a rise in overdose rates during the pandemic,” said Dr. Katie Krauskopf, medical director of Substance Use Disorder Services at MiraVista Behavioral Health Center in Holyoke. “It looks like Massachusetts’ trend is better than nationally, and there is some indication that 2022 might be better than 2021. But we clearly saw people struggling during the pandemic, and a lot of that probably had to do with difficulty accessing care and the isolation that came along with it.”

In her experience, the pandemic impacted two groups differently: many of those with substance-use disorder who were already in treatment programs did better during the pandemic because the social restrictions helped them avoid some of the triggers they might normally have encountered more frequently. Meanwhile, regulatory changes around access to treatment allowed patients to take home medications they could not previously.

“People are reluctant to hire somebody with an history of opioid addiction; people are reluctant to house somebody with a history of opioid addiction, in lots of ways that aren’t based in reality, but based in fear, based in discrimination, based in stigma.”

“So patients in treatment have done quite well,” she went on. “The real issue was the patients who were not already engaged in treatment and were unable to do so.”

The DPH found clear evidence that the COVID-19 pandemic had a profound impact on mental health and led to increased substance use and poorer mental health across the Commonwealth, especially among BIPOC communities and LGBTQ+ individuals.

“We continue to be relentless in our commitment to increase access to harm-reduction services, low-threshold housing, and treatment,” Health and Human Services Secretary Marylou Sudders said. “By working to destigmatize addiction and meeting people where they’re at, including with an expanded array of harm-reduction tools, we can reverse this negative trend.”

Locally, organizations committed to improving behavioral health — and removing the stigma and barriers that keep people from accessing care — are doing just that.

 

Support System

Palmieri said it’s important to remember that recovery doesn’t happen in a vacuum, but is tied to social determinants like housing and economic stability.

“Whether it’s opioids or anything else, our role is to help people understand what’s getting in the way of their recovery and help fill the void that used to be filled with drugs or alcohol with things they can find meaning in,” she told BusinessWest. “We’re not only interested in sobriety and helping people stop using, but also, what are you going to do instead? Our primary goal in our residential programs and our housing programs is to make sure people have a safe, affordable place to go to live after treatment, someplace that isn’t necessarily the same neighborhood where they started using in the first place, someplace they can afford and sustain — but also to find employment, something that gives their life meaning beyond using, something they can wrap recovery around.”

René Piñero, vice president of Behavioral Health & Clinical Operations at MHA, said the pandemic curtailed some services in the community to counter addiction.

“But I definitely agree that it’s not all about accessible treatment; it’s about having housing and other supports. The state has provided funding for these programs and services, but it’s also about where people go to live after treatment, what supports they have, and opportunities to find employment. Even if we have treatment that is accessible for them, if we can’t find them a home address, it’s going to be more difficult.”

For those lacking access to care, the pandemic-driven isolation people felt didn’t help, Palmieri added — and in some cases increased a sense of stigma around seeking help.

René Piñero and Christine Palmieri

René Piñero and Christine Palmieri say addiction recovery often goes beyond treatment and entails social supports like stable housing.

“People are reluctant to seek support and services because asking for help means admitting there’s a substance-use issue that’s going on, and the stigma that surrounds opioid addiction is sometimes insurmountable,” she said, adding that stigma isn’t a one-way street. “We’re trying to get people connected, but we face barriers all the time. People are reluctant to hire somebody with an history of opioid addiction; people are reluctant to house somebody with a history of opioid addiction, in lots of ways that aren’t based in reality, but based in fear, based in discrimination, based in stigma.”

Krauskopf said the Greater Holyoke area has plenty of resources in place, from increased naloxone distribution to facilities like MiraVista, which offers a full continuum of substance-use programming, from acute inpatient detox to a clinical stabilization service to outpatient programs like an intensive, four-week program that teaches skills ranging from emotional regulation to mindfulness to dealing with triggers. “It’s not one-size-fits-all here at all. We have all these programs, and patients can really fit themselves into what they need at any given time and move through the services depending on where they are.”

The state has been aggressive with programming as well, expanding substance-use-disorder treatment and overdose-prevention initiatives since the start of the pandemic and investing $120 million in prevention programs from 2016 to 2022, as well as distributing well over 150,000 naloxone kits since March 2020 to opioid-treatment programs, community health centers, hospital emergency departments, and houses of correction.

 

Try, Try Again

Cristina Rivera, director of Outpatient Services and Substance Use at MiraVista, said everyone’s addiction-recovery journey is different.

“We know that recovery is ongoing, and there might be bumps in the road. In that sense, we help people wherever they’re at. If you start using substances again, it’s not like we’re not going to accept you into our program and try to get you back on track.”

Piñero said it’s helpful to recognize that mental-health and substance-use challenges require the same attention as any chronic, physical medical issue.

“Recovery has its ups and downs just like other medical issues. Often, with diabetes, cancer, and other medical conditions that aren’t stigmatized, people are more willing to recognize that.”

Krauskopf agreed, citing studies suggesting that rates of relapse and loss of control in addiction recovery are similar to those in people managing diabetes, asthma, and high blood pressure.

“The notion that recovery is a straight line is not realistic; it’s really up and down. Part of the disease is that patients will relapse, and we’ll help them get their footing back,” she told BusinessWest. “People have begun to pivot to understand this condition as a long-term chronic condition that requires people’s full attention at different levels of intensity, and we try to provide that here.

“Recovery is about medication for some, but lifestyle modification, too,” she added. “When you think about diabetes, many people do well with changes in their diet and exercise, and many people do that and need something else at well. It’s all the same goal.”

While the need for more resources is high, she said, especially when it comes to residential programs, the hope is that those struggling with addiction will see past the persistent stigma and seek help from the many resources that are currently available, and that those overdose numbers will start to fall again.

After all, they’re much more than just numbers.

 

Joseph Bednar can be reached at [email protected]

Opinion

Editorial

They cut the ribbon at the new Marriott Springfield Downtown last week.

It was a lavish ceremony that was more than three years in the making. That’s how long it has taken serial entrepreneurs Vid Mitta and Dinesh Patel, owners of Springfield Hospitality, to transform the property in Tower Square, which lost the Marriott flag several years ago amid serious decline, into one of the state’s best hotels west of Boston.

A host of local, state, and national elected officials, area business leaders, and representatives of the Marriott chain turned out to celebrate the transformation of the property and the return of the Marriott flag to Springfield. There were speeches, tours, music from the Springfield Sci-Tech band, and more.

The ceremony marked more than the official ribbon-cutting for the hotel, though. It commemorated a triumph over extreme challenge — this renovation, or re-imagination, of the property was undertaken during the pandemic and thus had to overcome a series of stern challenges — and a raising of the bar, if you will, in Springfield and its downtown.

Indeed, like MGM Springfield before it, the new Marriott sets a new standard for imagination and quality in the city, and it is our hope that it will inspire others to reach higher and think bigger as they contemplate what can be done in Springfield and its downtown.

From the beginning, not just with the hotel but with the larger Tower Square property, Patel and Mitta have thought outside the box — relocating the Greater Springfield YMCA to the property is perhaps the best example — and never settled for ‘good enough’ as they have remade the landmark that opened in the late ’60s and set the tone for a period of building higher and better in the city’s downtown.

It is our hope that, more than 50 years later, the renovated Marriott and Tower Square complex can have a similar impact.

Indeed, while there has been some real progress in downtown Springfield over the past several years with MGM Springfield, the renovation of the former Court Square Hotel (still ongoing), the construction of a new parking garage (set to begin), and other initiatives, many other properties remain vacant or very much underutilized.

This is especially true farther south on Main Street in the area across from the MGM complex. But there are other properties as well that are awaiting new life.

The Marriott project, and the larger Tower Square initiative, have shown what can be done. They’ve shown what’s possible when people are willing to commit to Springfield and, as we said, think big. It is our hope, and expectation, that it will be a big success from a business perspective as well.

It is also our hope that this project, and some of the others now taking shape, like Court Square, will inspire other developers to look at Springfield as a city worth investing in.

All this, in addition to a grand new hotel, is what people were celebrating at that ribbon cutting.

 

Cover Story

The Next Stage

Donald Sanders, executive artistic director of MIFA Victory Theatre

Donald Sanders, executive artistic director of MIFA Victory Theatre

When asked how many tours he’s given of the Victory Theatre in Holyoke, the landmark that went dark in 1979, Donald Sanders gave a hearty laugh — something he does often — and just shook his head. That was his way of saying ‘more than I could count.’

Those tours have been given to elected officials, economic-development leaders, city department heads, arts groups, members of the media … you name it. They’ve all been in for a look at this piece of history that a city, and a region, have been desperate to renovate and make a part of the future, not merely the past.

And while the tours given today are essentially the same as those given years or even decades ago — they go everywhere from the front lobby to the mezzanine to the stage area — there is a new sense of urgency, optimism, and, yes, momentum — with these visits, said Sanders, executive artistic director of MIFA Victory Theatre, which has been at the forefront of efforts to restore the theater for the past 20 years.

Indeed, over the past several months, there has been a new tone to the discussions about restoring the 1,600-seat facility back to a Broadway-style theater. Specifically, there is a growing sense, after more than 40 years of talk, that this project is real.

“It’s more than just arts and culture; it’s really about impact to community and the secondary impact it offers.”

“I’ve always been optimistic that this could happen, but now, there is greater reason for optimism,” said Sanders, noting that MIFA (the Massachusetts International Festival of the Arts) acquired the Victory Theatre from the city in 2009 and has been committed to its revival since because it region’s best option for bringing large Broadway shows back to the Pioneer Valley. “There is a greater sense of momentum now than perhaps ever before.”

Several factors have contributed to this momentum — everything from a visit to the theater by gubernatorial candidate Maura Healey back in late June to a recent bus trip to Schenectady, N.Y. to take in the restoration of the Proctors arts complex, a project that is similar in many ways to the Victory initiative, to progress with the closing of a persistent funding gap thanks to federal ARPA money.

renovated Victory Theatre.

An architect’s rendering of a renovated Victory Theatre.

Some of that money has been aside for “transformative projects” in communities, said Sanders, adding that he and others have long been making the case that a restored Victory Theatre hosting Broadway shows and other large events can and will have a transformative effect on the local economy.

But there are other factors as well, said Susan Palmer, a principal with the Palmer Westport Group, which focuses on strengthening and developing fundraising and leadership capacity of theaters across the country.

She has consulted on a number of projects aimed at bringing formerly dark theaters back to useful life, and she credits the leadership in Holyoke, and especially Joshua Garcia, the city’s first Puerto Rican mayor, with injecting some needed energy and confidence in the Victory Theatre project.

“He has been fearless; he has been relentless,” said Palmer, who was a theater producer at Barrington Stage in Pittsfield and also worked at Jacob’s Pillow, the Colonial Theater, and the Berkshire Theatre Festival before launching her consulting firm in 2005. “He has a three-legged stool of priorities for the city; he wants to increase and improve the housing stock, he wants to improve educational outcomes, and he wants Holyoke to be the center of economic revitalization in that area, and he feels putting the Victory Theatre back in service is a key to that.”

Garcia, who has put together a strike force (led by his wife, Stephanie) to keep the focus on the project and raise funds within the community for the efforts, said the theater project is, indeed, a key element in efforts to revitalize the city and its downtown and bring new businesses and vibrancy to the community.

The theater has been closed since before he was born, but its importance to the city, from a cultural, economic-development, and pride standpoint, is certainly not lost on him, and he believes the remaining hurdles to restoration of the Victory can be cleared.

“This project is in the ninth inning, as I like to say, and we have a short window to close the funding gap,” Garcia said. “The gap is $15 million to $20 million, but a very clear and doable path has been identified.”

He said the trip to Schenectady, during which participants got to take in a performance of Aladdin, showed not only what can be done to restore a landmark, but what doing so means for the community.

children watch a movie at the Victory Theatre in the ’70s

At top, children watch a movie at the Victory Theatre in the ’70s. Above, a view of Suffolk Street and the theater from 1955.

“It was such an eye-opening experience to know what Schenectady has been able to accomplish with their community,” he said. “It’s more than just arts and culture; it’s really about impact to community and the secondary impact it offers; their story felt very similar to ours.”

For this issue, BusinessWest takes an in-depth look at the Victory Theatre project and at how those involved believe that now, more than 40 years after the last movie was shown there, there is sufficient funding, and momentum, to get this initiative over the goal line.

 

Marquee Moments

Palmer told BusinessWest that she has been involved with several theater-restoration projects, including the Colonial Theatre in Pittsfield, a project credited with helping to revitalize a city that had been devastated by the loss of its largest employer, General Electric.

While all of these initiatives differed in some ways, there was a common denominator: time.

Indeed, almost all of these projects took several decades to complete, she said, adding this is an element that is often overlooked in some communities undertaking such initiatives, including Holyoke.

“They all take a long time,” she said. “But the people who are working in these individual communities are only working on their project; they don’t realize that they’re in a pool of companions who have experienced the same thing.

“I worked on one in Ohio, the Woodward Opera House, that took 33 years. So there are two generations of people who have been involved with that. I was brought in in the last three years, and I would talk to people who would say, ‘my parents were working on this back when I was in grade school.’”

“I worked on one in Ohio, the Woodward Opera House, that took 33 years,” she went on. “So there are two generations of people who have been involved with that. I was brought in in the last three years, and I would talk to people who would say, ‘my parents were working on this back when I was in grade school.’”

There are at least two generations of Holyoke residents who have been hearing about, and been part of, efforts to restore the Victory Theatre.

Time has mostly stood still for the landmark since its last showing of the Clint Eastwood comedy Every Way Which Way but Loose in 1979. As one enters the theater, there are some remnants from that final showing, including a few old popcorn tubs, still to be seen.

Movie showings were the last chapter for the Victory, which was commissioned by leading industrialists in the city, including silk-factory owner William Skinner, in 1918, said Sanders, adding that it was intended to be the largest, grandest theater in a thriving city that already boasted many of them.

Turning back the clock a century or so, Sanders said Holyoke had several theaters in its downtown area, as well as a 3,000-seat opera house that stood where a parking garage now exists across from City Hall. The theaters included the Strand, the Majestic, the Suffolk, and the Bijou.

The site selected for the Victory Theatre, a name chosen to commemorate the Allies’ victory in World War I, was adjacent to the Holyoke House, then the finest hotel in the city, said Sanders, adding that this was a pattern followed by many cities at that time.

The Victory Theatre closed in 1979

The Victory Theatre closed in 1979 and hasn’t seen much light since then.

The Victory was what’s known as a ‘legitimate house,’ said Sanders, meaning that it had the finest of accommodations and was the therefore the preferred theater of choice for many performers of that era.

“That terminology means it hosted the highest level of shows and was a theater that was the best-equipped, had the best dressing rooms, etc., etc.,” he said, adding that Holyoke didn’t have a ‘legit house,’ and its leaders were determined to build one.

Fast-forwarding through the history of the Victory, Sanders said its fortunes mirrored those of the city. As the paper and textile mills that enabled Holyoke to boast one of the highest per-capita income rates in the country a century ago began to move south and then eventually offshore, the theater and the area around it started to decline, and the Victory eventually became a movie house.

As the trend in movie theaters shifted to smaller facilities in large complexes with multiple screens, its fortunes faded further until it ultimately closed. After it was taken for non-payment of taxes in the early ’80s, there were various efforts to restore the landmark, said Sanders, adding that, in all cases, the money needed — $9 million maybe 30 years ago and then progressively higher figures as the scope of the work increased — could not be raised.

In 2005, an item came before the Holyoke City Council to raze the Victory Theatre, he said, adding that he lobbied that group to stay the execution, arguing that such a vital landmark — and potential economic-development engine — should not be lost to the past.

The council listened, he said, and the Victory lived to fight another day.

To the casual observer, meaning those who haven’t been in for a tour, the facility seems frozen in time and unchanged. But that’s not the case, said Sanders, noting that a number if improvements have been undertaken over the years to ready the theater for restoration.

Steps have included asbestos removal, installing a new roof, converting the gas utility to electric (a project still underway), restoration of historic murals located near the stage, replacing non-compliant window coverings with new polycarbonate clear coverings, and other initiatives that together total nearly $5 million.

Overall, the structure is very sound, noted Sanders, adding that no expense was spared in building it.

 

Victory Is in Sight

To bring a project like the Victory Theatre to a successful result, a number of elements have to come together, Palmer said. These include leadership, a commitment from the community, funding, of course, and sometimes a little luck.

In the case of the Victory, the luck, if one chooses to call it that, comes in the form of ARPA money in the wake of the pandemic, funds that are expected to close most, but not all, of a $5 million to $6 million gap between the $58 million needed for the project and what has been raised through various means, including historic tax credits and new market tax credits; private, individual, corporate, and foundation donations; and public grants.

“ARPA money is what helped this project turn the corner,” Palmer explained, adding that the federal government has released $350 billion in funds to individual cities and states, and those working on the Victory Theatre project are currently working with several lobbyists to position this initiative for a $12 million ARPA allocation.

“It hasn’t happened yet … it’s coming in dribs and drabs, pieces here, pieces there,” she said, adding that the ARPA funds will constitute roughly half of what still needs to be raised for the project.

The rest will be raised locally, she said, adding that $7.5 million has been pledged, and there are plans for a community effort with a goal of raising $2 million.

Local fundraising will include mostly smaller donations, Palmer said, but that grassroots effort, which will involve phone calls, knocking on doors, letter-writing campaigns, and fundraisers and friendraisers of all kinds, will bring area residents and businesses into the fight to restore the theater, and it will send a strong message to elected leaders about the importance of the initiative — to the city and region as a whole.

Mayor Garcia agreed, and noted again the importance of the project, not just from the standpoint of the arts, as significant as that is, but to the proverbial big picture in Holyoke and the region.

“The Victory Theatre checks off a lot of boxes,” he said. “When we think of what we’re trying to do in our city, in our downtown, in terms of tourism and economic development, this is just another piece of the greater economic system puzzle that we’re trying to solve here.”

Elaborating, he said the theater cannot exist in a vacuum, and there must be an infrastructure of supporting businesses — restaurants, bars, and other hospitality-related ventures — to make a revitalized Victory Theatre succeed.

Palmer concurred, and to explain, she did some math.

“When the theater opens, it’s going to be substantial — there are 1,600 seats in there,” she said. “The average occupancy, or utilization, rate of any nonprofit regional theater on any given night is 65%, so there will be 1,100 people bopping around that neighborhood several times a week. Right now, there aren’t many things to do, and certainly not enough to accommodate 1,100 people.

“So, there’s a parallel effort we’re working on to make sure, when the theater opens its doors, that the ancillary economic benefit will be ready to go,” she went on, adding that city officials and the strike force are working to help make sure that there is an infrastructure in place to support the theater.

Meanwhile, work continues to build on the current momentum and convince the public that there is a path to getting this done, said Aaron Vega, Holyoke’s Planning director, adding that more than 40 years of waiting for action on the property has created some stubborn skepticism that still must be overcome.

“It does take a long time for these projects to happen, and there has been work done,” he said. “Unfortunately, it’s not visible from the outside; people drive by and say, ‘it looks the same as it did 10 years ago or 20 years ago.’ Overall, we need to reinstill some energy and some trust that this project is real.”

The bus trip to Schenectady and the Proctors arts complex was part of this larger effort, said Vega, noting that Schenectady and Holyoke are very similar in that they were both devastated by the loss of large employers (in the former’s case, it was General Electric). And their respective restoration projects are similar as well in that they involved long periods of time and a deep commitment from the community.

“One of the reasons we took that trip is to have people be able to come back and tell the story of what a theater like this could do for Holyoke, obviously, but also the entire region,” he said, adding that these discussions are now being had, generating what he and others expect will be more momentum.

And momentum not just for theater, he said, but what can come because of such a facility.

“I’m hoping that people can see the spinoff,” he explained. “The new restaurants, the buildings that were unoccupied being reoccupied — that’s the thing we want to see, the spinoff and the ripple effect; that’s what is going to affect everyone, not just those who will go to the theater.”

 

Bottom Line

Returning to the subject of those tours he has given — and will continue to give — Sanders said they do more then enlighten. They also educate and inspire those who take them.

In most all ways, they are better than a marketing brochure, better than talking to someone about the history and importance of this landmark.

“It’s our biggest selling point; it’s much better than me saying, ‘we have the last Broadway house in the region,’” he noted. “People walk through the door, they see 800 seats and the stage … and they realize what a treasure this is.”

It’s been 43 years since this treasure was anything more than a piece of history, but if all goes well — and things are tending in that direction — it will soon be an important piece of the future.

 

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

Accounting and Tax Planning

Million-dollar Question

Anew poll of Massachusetts voters conducted by Suffolk University, the Boston Globe, NBC10 Boston, and Telemundo found that 58% of respondents support ballot Question 1, compared to 37% in opposition. Question 1, on the Massachusetts ballot on Nov. 8, would create a 4% tax on the portion of a person’s annual income above $1 million and require that the funds be spent only on transportation and public education.

“Tens of thousands of educators, workers, small-business owners, parents, faith leaders, municipal officials, drivers and transit riders, and more than 500 organizations across the state are all working together to pass Question 1 in November,” said Lillian Lanier, field director for Fair Share for Massachusetts, the leading advocacy group working to pass the ballot initiative. “We’re supporting Question 1 because we know it will help improve our schools and transportation infrastructure, and only the very rich will pay more. A few billionaires are trying to mislead voters about what Question 1 does, but our grassroots supporters are having thousands of conversations every day to combat their misinformation.”

That survey result may be concerning to the Coalition to Stop the Tax Hike Amendment, the leading collection of organizations opposed to the initiative, claiming to represent more than 25,000 small businesses, in addition to thousands of homeowners, retirees, farmers, and large employers.

“If passed, Question 1 would be one of the highest tax hikes in Massachusetts history, immediately and permanently implementing an 80% tax increase and threatening small businesses across the state,” the coalition argues. “Question 1 captures tens of thousands of small-business owners who do not make more than $1 million per year and are working hard to rebuild after the negative impacts of the pandemic. At a time when we should be helping our small businesses recover, small-business owners will instead be left reeling from a new, unprecedented financial hit.”

As written, the proposed amendment to Article 44 of the Massachusetts Constitution states that, “to provide the resources for quality public education and affordable public colleges and universities, and for the repair and maintenance of roads, bridges, and public transportation, all revenues received in accordance with this paragraph shall be expended, subject to appropriation, only for these purposes.

“In addition to the taxes on income otherwise authorized under this article, there shall be an additional tax of 4% on that portion of annual taxable income in excess of $1 million reported on any return related to those taxes.

“To ensure that this additional tax continues to apply only to the Commonwealth’s highest-income taxpayers, this $1 million income level shall be adjusted annually to reflect any increases in the cost of living by the same method used for federal income tax brackets. This paragraph shall apply to all tax years beginning on or after January 1, 2023.”

The Coalition to Stop the Tax Hike Amendment argues that Question 1 impacts the tens of thousands of small businesses across the state that file taxes as pass-through entities, noting that these small businesses file their business’ revenue as personal income, even though much of it is reinvested back into their business. The coalition notes that many of these small businesses are operating on razor-thin margins and take home very little profit, yet the proposed amendment treats their business revenue as if they are a high-earning individual, threatening their business’ viability.

“Our organization represents 4,000 small businesses across the state, with a vast majority of these businesses set up as pass-through entities,” said Jon Hurst, president of the Retailers Assoc. of Massachusetts. “Many of these organizations could see their taxes nearly double under Question 1. This constitutional amendment will devastate our local economy and threaten small businesses statewide.”

The coalition also argues that Question 1 robs the nest eggs of small-business owners who are relying on the sale of their business to fund their retirement. Unlike federal taxes on personal income, this measure treats one-time gains — such as those from selling a business, home, or farm — as regular income, pushing many retirees into the new, higher tax bracket, and nearly doubling their taxes.

Among the organizations that have united against the amendment are the Massachusetts High Tech Council, Associated Industries of Massachusetts, the Western Massachusetts Economic Development Council, the National Federation of Independent Business, the Massachusetts Fiscal Alliance, the Massachusetts Farm Bureau, the Massachusetts Retail Lumber Dealers Assoc., the Springfield Regional Chamber and many other chambers of commerce, the Alliance of Automotive Service Providers of Massachusetts, the Massachusetts Seafood Collaborative, and the Massachusetts Business Roundtable.

But Question 1 does have supporters, as the Yes on Question 1 campaign has been endorsed by 87 labor unions; 72 community organizing groups; 18 faith-based groups; more than 75 businesses; 64 city councils, select boards, and school committees; 89 local Democratic town and ward committees; and 115 other social-service and not-for-profit organizations focused on housing, education, transportation, public health, and the environment.

Supporters call the amendment an opportunity for Massachusetts to improve schools and colleges, fix roads and bridges, create jobs, and boost the economy, all without 99% of taxpayers paying a single cent more.

As a tax on personal income over $1 million, Fair Share for Massachusetts argues, business taxes would not be affected, and Question 1 doesn’t apply to any business revenues. It notes that fewer than 3% of businesses owners in Massachusetts have taxable personal income over $1 million that would be subject to Question 1, and many of them are primarily investors or shareholders, not people running a business day-to-day.

“If a business is generating more than a million dollars in personal profit for the owner, even after they deduct all their business expenses, let’s be real: it’s not a small business, and that super-rich business owner can afford to pay their fair share in taxes,” said Gerly Adrien, business director of Fair Share for Massachusetts and owner of Tipping Cow Ice Cream in Somerville and Boston.

Education

What’s the Word?

Caroline Gear says the pandemic brought challenges

Caroline Gear says the pandemic brought challenges to ILI, but also new ways of connecting with language learners.

 

A global pandemic hit businesses and nonprofits in different ways. For the International Language Institute of Massachusetts (ILI), which relies on a steady flow of international students, the impact was especially great, as global travel slowed and those connections quickly dried up.

“We went from close to $350,000 a year in our Intensive English programs to $86,000,” said Caroline Gear, the institute’s executive director since 2015. She noted that the CARES Act and other emergency COVID relief, PPP loans, and an employee-retention tax credit helped ILI over the roughest whitewater, and international students are coming back … to an extent.

“I don’t think it’s ever going to come back to pre-pandemic times, but I like to say that we’re emerging anew,” Gear said. “I wouldn’t call it a recovery, because I don’t think we’ll ever recover to those numbers.”

The headwinds include a strong U.S. dollar making it expensive to travel to the States for study, as well as more competition from other countries with programs that teach English and other languages. “Canada opened up much quicker than us after the pandemic, so a lot of students went to the Canadian market and not to the United States. With Brexit, the U.K. lost a lot of international students, too.”

Still, Gear said, “I believe the United States academic culture and expertise and prestige is number one, but we have to make sure that we stay that way and continue to be welcoming. When you’re looking at where our students are coming from, I love the fact that we’re so diverse.”

The numbers bear that out. ILI’s Free English program alone — just one of several major programs at the institute (more on them later) — boasts 120 students from 27 different countries, ranging in age from 17 to 80. In one change from before COVID, five of the six sections are online, though the Intensive English program, because of its immersive aspect, is delivered in-house.

“We’ve all put in extra time because we all believe in this mission of promoting intercultural understanding and diverse communities through high-quality language and teacher training.”

“When the pandemic hit, we thought we would be back in a few months, but we wound up moving all of our classes online,” Gear said, adding that the Intensive English students were the first to return to face-to-face instruction, in August 2021. “Other than that, most of the classes were still meeting online. Our teachers are amazing; they went from emergency teaching to really creating an amazing curriculum online. Online teaching is another revenue stream, which is important for a nonprofit, but I really didn’t want to do it that way.”

But while much of the live instruction has returned to New South Street in Northampton, remote learning will remain part of the plan going forward, which allows ILI to reach students anywhere.

With nine full-time and 23 part-time instructors and staff at the moment, Gear said, “we’ve all put in extra time because we all believe in this mission of promoting intercultural understanding and diverse communities through high-quality language and teacher training.”

 

An Idea Takes Root

In 1984, Alexis Johnson was a language teacher without a job. But she didn’t lack for vision or passion. So she and another teacher, Janice Rogers, decided to open a language school, one that would meet the needs of myriad clientele, from local non-English speakers aiming to improve their workplace communication to student visa holders preparing for college stateside, to Americans skilled in other languages seeking training to become teachers overseas.

After decades of growth that affirmed her initial vision, Johnson stepped down from the executive director’s chair in 2015 after 31 years, handing the reins to Gear, who has been at the institute since the mid-’80s.

From left, Macey Faiella, director of English Programs; Heather Hall, office manager; Caroline Gear, executive director; and Samira Artur, instructor and program coordinator.

Perhaps the most well-known of ILI’s programs is its World Language program, which teaches a number of languages to students with a variety of goals. Some have a son or daughter marrying someone from another country. Others want to boost their communication skills on the job in an increasingly multi-cultural world. Still others want to advance on the job.

Another popular option is the Free English program, a partially grant-funded initiative that provides free classes for immigrants and refugees looking to improve their English skills for work, college, and their daily lives. English classes meet two evenings a week for a total of six hours.

On the flip side is the Intensive English program, which offers an immersive education for international students, with 21 hours of instruction weekly.

“Maybe their company sends them here, or maybe they know their ability to get a job is improved with a better English level,” Gear said. “The average intensive stay is three months; some take longer. Then they go to university or go home and get a job. Area employers will also send employees here to improve their English.”

Four scholarships — funded by Dean’s Beans; immigration law firm Curran, Berger & Kludt; an anonymous donor, and in honor of a board member’s late uncle, Richard Martin — are offered annually to move four students from the Free English program to Intensive English.

“It’s phenomenal to see what they have to say of the difference between six hours and 21 hours,” Gear said. “It takes about a year of classes in the Free English program to go from one level to another, and now they can do that in three months, so it’s really accelerated learning.”

Meanwhile, students in the University Pathways track of the Intensive English program receive individualized support to transition successfully to a university or college. Instead of cramming for exams or memorizing grammar rules, they practice a set of skills including essay writing, classroom participation, interactive presentations, small-group discussions, team collaboration, academic research, and critical analysis. By focusing less on test taking and more on academic training, they’re better positioned to succeed. 

ILI boasts partnerships with more than a dozen colleges and universities, Gear said, that offer these students conditional admission if they meet certain criteria. “They don’t have to take a standardized English test because those schools trust us and know we won’t recommend them unless they are ready to go. We’ve been in this business many years, and we know when people are ready to be successful.”

She added that, “no matter how great your English level is, academic culture in the United States is completely different from their home culture academically. We get them away from rote learning and rote test taking by working on cultural skills, active participation, written and oral production, independent self-direction, peer collaboration, and critical thinking. It’s really helpful for students because they’re so used to one way of teaching for so many years, and we don’t do it that way here.”

ILI’s Workplace Training program offers language courses for companies and employees that bring specialized language training to the workplace. Small businesses can apply to a state fund that pays for this training, Gear said, which makes sense at a time when worker recruitment and retention are such a challenge.

“We all know the situation with finding employees. So if a company finds a great employee but finds their language skills need improvement, working with the state of Massachusetts to have them pay for it is phenomenal.”

As one example, as Gear was giving a tour of ILI to BusinessWest, Office Manager Heather Hall had just gotten off the phone with Flour Bakery in Boston, which employs more than 400 people and was looking for English and Spanish training for many of its staff.

“I’m always learning from our students, and we are making a difference in so many people’s lives. It’s incredibly gratifying to be able to do this work.”

“We’ve also worked with the Holyoke public school system, where we teach the teachers Spanish and the parents English,” Gear said. “It’s not only about learning a language, it’s about learning a culture, navigating systems, and playing an integral role in making sure people feel safe to take risks and get to the next step of their career.”

The sixth — but certainly not least — major component of ILI’s programs is Teacher Training, specifically the SIT TESOL Certificate program, which becomes the graduate’s ticket to teaching language, both in the U.S. and internationally.

 

Diving In

At the heart of all these programs is a teaching style that, as noted earlier, ditches rote memorization for an immersion approach where constantly putting language into practice, student to student, trumps getting every word perfect.

There’s an element of fun to this immersion, too, Gear said. As one student told her, “we play a lot, but I’m learning a lot.”

Gear and her team are learning, too — about how to navigate a post-COVID world that offers new challenges, but new opportunities as well.

“We’ve diversified more, but we still do the same thing: we teach languages, and we train teachers,” she told BusinessWest, noting that a permanent online presence will be a positive from a revenue and growth perspective.

“It was pandemic-driven because our school runs tuition-based programs that support our partially funded Free English classes. So we need students as well as grants and incredibly generous donors to support our school,” she explained. “We wanted to do online instruction, and now we will always teach online, even as people start to come back to more face-to-face programming.”

After all, she said, “not everyone wants to have classes face to face. There are transportation issues, there are childcare issues, so it’s all about access to education. If we can continue to provide classes to folks virtually and also bring them back in here, that’s a positive.”

At the same time, those in the Teacher Training program are learning to teach online, too, a necessary skill post-COVID.

Coming up on ILI’s annual giving season, when letters of appeal are sent to potential supporters, Gear noted that “it’s not just one thing that runs this school; it’s a variety of revenue streams — tuition-based programs, generous community supporters, grant foundations that support us … and love.”

She’s also hoping for some of the ARPA money being distributed by the city of Northampton, which would be put to use upgrading the institute’s space and air flow as part of a three-phase improvement plan.

But mostly, she’s adapting — and appreciating the impact the International Language Institute has on individuals, families, businesses, and communities both locally and around the world.

“I love my job. I love who I get to work with, what we do to help people to the next step,” she said. “I’m always learning from our students, and we are making a difference in so many people’s lives. It’s incredibly gratifying to be able to do this work. It’s not been easy through the pandemic, but we’ve learned to embrace the uncertainty and look for opportunities.”

 

Joseph Bednar can be reached at [email protected]

Employment

Let the Buyer Beware

By Alexander Marsh and Jeremy Saint Laurent, Esq.

 

Historically, non-competition agreements have been a useful tool for employers to protect their businesses, financials, and proprietary information when a departing employee leaves the company to work for a competitor. Over the past decade, the ways in which non-competition agreements can be used has been restricted.

Indeed, Massachusetts has significantly limited the functionality of non-competes, and California has barred them altogether. Recently, the federal government, vis-a-vis the Federal Trade Commission, has limited their use in corporate mergers and acquisitions.

“In October 2018, Massachusetts practically banned non-competes through the creation of very specific and strict requirements. As a threshold matter, non-competes in Massachusetts cannot be freely used and, rather, must protect a legitimate business interest.”

Alexander Marsh

Alexander Marsh

Jeremy Saint Laurent

Jeremy Saint Laurent

Just four years ago, in October 2018, Massachusetts practically banned non-competes through the creation of very specific and strict requirements. As a threshold matter, non-competes in Massachusetts cannot be freely used and, rather, must protect a legitimate business interest. The definition of legitimate business interest is limited to trade secrets, confidential information of the employer that otherwise does not qualify as a trade secret, or the employer’s good will.

Other alternative restrictive covenant, such as non-solicitation, non-disclosure, and/or confidentiality agreements, must be explored prior to resorting to a non-compete.

Massachusetts further tightened up the ability to implement non-competes by creating a litany of other requirements. The non-compete must:

• Be in writing;

• Be signed by both the employer and the employee and state that the employee has a right to consult a lawyer before signing the agreement;

• Provide notice of the agreement to the employee (the notice requirements change depending on when the employee is asked to sign the agreement); and

• Occur at the beginning of employment or provide notice of the agreement no less than 10 business days before the agreement would become effective and provide additional compensation.

The conduct the agreement seeks to prevent must not violate the public interest. Generally, public policy favors an employee’s ability to move from one job to another without restriction. Only a narrowly tailored agreement to protect a legitimate business interest will fit within public policy.

It is against public policy in Massachusetts to allow for non-compete agreements in certain professions. Non-competes signed by nurses, physicians, psychologists, social workers, and certain employees of broadcasting companies are considered void in Massachusetts. This is to protect public health and the free flow of information and ideas. A non-compete agreement in any of these areas is unenforceable as a matter of law.

Additionally, a non-compete agreement is not valid against a low-wage employee. The law states that employees who are classified as ‘non-exempt’ (typically, employees eligible for overtime pay and hourly wages) under the federal Fair Labor Standards Act may not be required to sign a non-compete agreement.

Non-competes are also prohibited or unenforceable when an employee is terminated without cause or laid off. These workers are not bound by the terms of any non-compete agreement that they have already signed with their employer.

Now, on the federal side, non-competition agreements are coming under scrutiny through corporate mergers and acquisitions. The primary rationale for restricting them is public-policy concerns.

Traditionally, non-compete agreements as part of a corporate merger or acquisition were quite broad in scope and geography. The reason for their broad coverage makes sense: the sale of a business is primarily based upon good will. Buyers understandably would require broad non-competition coverage so, post-sale, they are not competing against a seller who may start or work for a competitor company. In other words, in a business sale, to protect its interest in the business, the buyer would want to restrict the seller’s ability to compete against it.

However, the Federal Trade Commission recently restricted the ability of a buyer to require broad, sweeping language in non-competes. Rather, they must be limited to what is specifically needed to protect portions of the business.

What does all of this mean for companies? Knowing how to properly craft a valid, legally enforceable non-competition agreement is paramount. As with other restrictive covenants, non-competition agreements should be used sparingly and tailored as narrowly as possible to adequately protect your client’s legitimate business interests without being overly restrictive to the employee.

Generally, a one-year duration is considered to be reasonable. Depending on the circumstances, it may be possible to protect your client with a non-compete that has a shorter enforcement period. Again, as a rule of thumb, the shorter the length of restriction, the more likely the non-compete will be enforceable. It may also make sense to explicitly prohibit competition during employment.

 

Jeremy Saint Laurent, Esq. is a litigation attorney who specializes in labor and employment law matters at the Royal Law Firm LLP, a woman-owned, women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council; (413) 586-2288. Alexander Marsh is a legal assistant at the Royal Law Firm LLP.

Law

Case in Point

By Justice Mary-Lou Rup and Briana Dawkins, Esq.

A recent decision from the Massachusetts Supreme Judicial Court (SJC), Commonwealth v. K.W., clarifies the standard for persons seeking to expunge records of criminal court appearances and dispositions from their state criminal records (known as Criminal Offender Record Information, or CORI) and court and criminal justice agency records.

By way of background, it is important to first understand that in Massachusetts, individuals may seek to clear their CORI in one of two ways: through sealing or expungement. If sealed, the record still exists but is unavailable to the general public. If expunged, the record no longer exists.

Petition to Seal Record (Mass. General Laws, Ch. 276, Secs. 100A-100D)

With some exceptions, one can petition the commissioner of Probation to seal disposed cases after a period (three years for misdemeanors and seven years for felonies) beginning on the later of the date of a guilty finding or release from incarceration, with no intervening criminal convictions. A judge can allow immediate sealing if the charge ends with a finding of not guilty or no probable cause, dismissal, or nolle prosequi, and must allow a petition to seal for first-offense convictions (with successful completion of probation), not-guilty findings, dismissals, or nolle prosequi of possession of marijuana or Class E controlled substances or in the presence of a person in possession of heroin, as well as decriminalized offenses.

For other offenses, sealing is discretionary, and the petitioner must show ‘good cause’ — that continued public availability of the record creates a current or foreseeable future disadvantage. If sealed, the courts will report ‘no record’ to criminal background checks, and the individual, if asked (such as on an employment application), can report having no record as to the sealed offense. However, courts, police, criminal-justice agencies, and certain other entities still have immediate access to sealed records.

Petition to Expunge Record (Mass. General Laws, Ch. 276, Secs. 100F-100P)

In 2018, as part of the Criminal Justice Reform Act, the state Legislature created two pathways for individuals to seek expungement. Following the first pathway (referred to as ‘time-based’ expungement), individuals who, before age 21, committed certain low-level offenses may apply to expunge those records.

Following the second pathway (known as ‘reason-based’ expungement), an individual can seek expungement of juvenile and adult criminal court appearances and dispositions by presenting ‘clear and convincing evidence’ that the record was created as a result of false identification or unauthorized use or theft of identity of the petitioner; fraud perpetrated on the court; ‘demonstrable’ error by law enforcement, witnesses, and/or court employees; or an offense that is no longer a crime.

There is a ‘strong presumption’ in favor of expungement of records created as a result of one of the statutory factors. That said, expungement is not automatic. A judge has discretion and must still balance that presumption against any ‘significant countervailing concern’ that may be raised when deciding if expungement is ‘in the best interests of justice.’ If none are raised, the judge must order expungement.

An expungement order results in permanent erasure and destruction of the record of the qualifying offense. Expungement of the record for a qualifying offense will have no effect on the existence of other records related to the same or other incidences.

Sealed or Expunged Records

It is important to understand the policy reasons that support the sealing and expunging of records. As the SJC noted in its recent decision, whether to seal a record ultimately relies on a defendant’s and the Commonwealth’s interests in keeping the information private, which includes “reducing recidivism, facilitating reintegration, and ensuring self-sufficiency by promoting employment and housing opportunities for former criminal defendants.”

With regard to expungement, the SJC stated that by specifically creating the qualifying reason-based factors, the Legislature itself had identified a good cause basis for expungement. Records created as a result of one of those factors “have virtually no bearing on whether the petitioner might commit a criminal act in the future, and their value to society therefore is vanishingly small.”

Once sealed or expunged, a record cannot disqualify a person from examination, appointment, or application for employment with any government agency, or in determining if that person is suitable for the practice of any trade or profession requiring a license.

Any application for employment that seeks information concerning prior arrests or convictions must contain the statements required by the statutes relating to sealing records and expungement of records regarding the applicant’s ability to answer ‘no record’ when records have been sealed or expunged. Employment applications should be reviewed to ensure compliance with the required language.

This article gives a general description of sealed and expunged criminal records. However, procedures for and the effects of sealing and expungement are complicated. Therefore, interested individuals should carefully review Massachusetts General Laws, Chapter 276, sections 100A-U, or seek advice from an attorney.

Justice Mary-Lou Rup is a retired Massachusetts Superior Court judge and now senior counsel at Bulkley Richardson. Briana Dawkins is also an attorney at Bulkley Richardson, where she practices in the employment and litigation groups.

Cover Story

At the Goal Line

With 35 other states having done so already, Massachusetts lawmakers were eager to pass a bill this summer legalizing sports betting, and Gov. Charlie Baker followed suit, signing it into law. Now comes the hard work by the Gaming Commission to establish a framework and scores of regulations — and the continuing research into a recreational activity that brings a still-uncertain level of economic benefit, alongside some well-established social risks.

The MGM Sports Lounge

The MGM Sports Lounge was designed to enhance the sports viewing — and eventually gambling — experience.

Rachel Volberg has been researching the effects of gambling for almost four decades, and since 2013, she’s been doing it at the behest of the Massachusetts Gaming Commission (MGC), which selected her team a decade ago to research the potential impacts of casinos.

“We’ve kept a pretty careful eye on things, but only a few U.S. states have any funding in their legislation to conduct research, so we know surprisingly little about the social and economic impacts of betting in the United States as a whole,” she told BusinessWest, and that’s even more true when it comes to legalized sports betting, which Massachusetts recently became the 36th state to legalize.

A research professor in the UMass Amherst School of Public Health and Health Sciences, for the past decade Volberg has been the principal investigator with Social and Economic Impacts of Gambling in Massachusetts (SEIGMA), whose latest report — the first of its kind in the nation — deals with the potential impact of legal sports gambling in the Bay State. And if the picture is still uncertain, it’s coming into focus.

“I think the biggest surprise for us was how little research had actually been done, particularly on the economic impacts — what does the industry look like once you legalize it, once it’s operational? What kinds of jobs, what kinds of revenues, and how are those jobs translating into economic benefits? There were literally only two or three economic studies we were able to identify, so there’s clearly a lot of work to be done in that area.”

What is emerging may not thrill proponents of sports gambling who support legalization on economic grounds. The study contends that direct economic impacts will depend on shifting spending from the illegal to legal market, and the impacts will not be entirely new since the majority of these already occur due to the illegal market. In addition, sports betting will primarily redistribute money already in the economy rather than attracting new money from outside Massachusetts.

“Sports betting is, by far, the number-one question I get asked on a daily basis, and it has been for years now. The entire team is looking forward to welcoming the first bet. When the time comes, we’ll be ready.”

“When you compare the tax revenue we anticipate being generated in Massachusetts by sports betting, the optimistic scenario is $60 million a year,” Volberg said, “which is not very large compared to the lottery, which in 2019 generated $1.1 billion in tax revenue, or casinos, which in 2019 generated about $168 million.”

That’s not nothing, of course, and state lawmakers overwhelmingly supported the bill to bring sports gambling out into the open, as did Gov. Charlie Baker, who signed the bill into law shortly after. It was the culmination of momentum that had been building since sports betting was legalized by a U.S. Supreme Court decision in 2018. Area legislators pointed out that, with every state in the Northeast having followed suit, Massachusetts was losing money to its neighbors.

“Legalizing sports wagering in Massachusetts will allow us to finally compete with neighboring states and will bring in new revenue and immense economic benefits,” state Sen. John Velis said in August.

The bill allows for 15 online licenses for companies like DraftKings and FanDuel, in addition to five retail licenses for the three casinos and two racetracks in Massachusetts. The bill also creates a commission to study additional licenses for smaller businesses, such as bars and restaurants.

The bill includes out-of-state collegiate betting but does not allow bets on Massachusetts college teams unless they are in the playoffs. The bill also includes a 20% tax on mobile bets and a 15% tax on retail bets, which would be paid by the operating company.

Rachel Volberg

Rachel Volberg

“At this point, the most optimistic scenario for sports betting tax revenues in Massachusetts is about $60 million, and that’s assuming the legal operators are able to capture the great majority of the legal market. It also assumes it will attract people who haven’t bet on sports before there was a legitimate, legal provider.”

“Sports betting is, by far, the number-one question I get asked on a daily basis, and it has been for years now,” said Chris Kelley, president and chief operating officer of MGM Springfield, which built two sports viewing lounges last year partly in anticipation of legal sports betting (more on those later). “The entire team is looking forward to welcoming the first bet. When the time comes, we’ll be ready.”

 

Devil’s in the Details

With the legislation now law, the MGC will work out the details that will make legal sports betting a reality. It has already come up with a list of about 225 regulations that will need to be drafted.

“A great deal of work has already been done by our team in anticipation of sports wagering becoming legal in Massachusetts,” Gaming Commission Executive Director Karen Wells said last month. “This includes identifying over 200 potential regulations, adopting a framework to utilize industry-recognized technical standards, establishing an infrastructure to investigate and license applicants, initiating the hiring of a chief of Sports Wagering, and scheduling public meetings. Now that we have a law that defines our responsibilities as regulator, we will work with our stakeholders to swiftly stand up this new industry with a focus on integrity, player safety, and consumer protection.”

They’ll take a hard look at SEIGMA’s report in crafting that framework and its many elements, Gaming Commission Chair Cathy Judd-Stein said, noting that “this report will aid the MGC as we begin to regulate a sports-wagering industry in the Commonwealth with an uncompromising focus on integrity and player safety.”

Volberg added that “we were trying to give a very broad overview of what is known at this point about the social and economic impact of sports betting, and it’s the first nationwide effort to do that. It also summarizes what we know about sports betting in Massachusetts.”

She told BusinessWest that the ‘handle’ — a term that refers to all money bet, including rewagered winnings, creating a high level of churn — is not the same as the total revenue taken in by operators.

“It’s easy to lose sight of the fact that sports betting is run on very narrow margins, so the actual revenues the operator is able to generate are a very small number of what the handle numbers are,” she explained. “At this point, the most optimistic scenario for sports betting tax revenues in Massachusetts is about $60 million, and that’s assuming the legal operators are able to capture the great majority of the legal market. It also assumes it will attract people who haven’t bet on sports before there was a legitimate, legal provider.”

Because so little information about the impacts of sports betting is available, Volberg’s team mined data from their own surveys and studies that are part of the research ordered by the Massachusetts Legislature when lawmakers passed the Expanded Gaming Act in 2011. Meanwhile, a representative survey of 8,000 adults was completed in Massachusetts earlier this year and provides a snapshot of changes in gambling behavior, attitude, and problem-gambling prevalence since 2013-14.

“The National Council on Problem Gambling has seen a significant increase in sports-betting participation since 2018,” she told BusinessWest, noting that it has also reported an increase in people saying they had experiences with one or more impacts or harms.

“That suggests that an increase in sports betting has the potential to come with increased harm, which is not a surprise, but in Massachusetts, because the Gaming Commission already has familiarity with implementing measures to try to minimize and mitigate harm — because they already have that experience with casinos — we’re hopeful those harms can in fact be minimized,” Volberg added.

Cathy Judd-Stein

Cathy Judd-Stein

“This report will aid the MGC as we begin to regulate a sports-wagering industry in the Commonwealth with an uncompromising focus on integrity and player safety.”

Alisha Khoury-Boucher, a clinical supervisor at MiraVista Behavioral Health Center, agreed to an extent. “Gambling has been a concern for a long time, but we already have a casino close by, so we don’t see a major change with the people we serve from legalizing sports gambling; if they wanted to do those things, they were already doing those things. It’s the behavior more than the access.”

Still, she added, “in my opinion, where we may see more of a problem is with young people, college-age people, who may still be home with mom and dad and have more disposable income. We might see an increase there, but that’s to be determined.”

“Any time a new entertainment is starting up, it’s always going to be advertised toward young people,” Khoury-Boucher said, citing vaping as one example. “They weren’t looking for middle-aged people who’d been smoking for 25 years; they were looking at mid- to late adolescents. It’s kind of the same thing with sports gambling. If you’re a sports fan, you’re seeing advertising that looks like the old beer commercials — everyone’s happy, it’s exciting, it’s flashy. They’re targeting young people, and that’s potentially a problem.”

Indeed, SEIGMA’s study notes that sports betting occurs in all demographic groups but appeals most to young, well-educated men. It adds that problem gambling is higher among sports bettors primarily because they tend to be involved with a large number of other gambling activities, so legalizing sports betting in Massachusetts has the potential to increase rates of gambling harm and problem gambling.

To mitigate those concerns, SEIGMA is advising the Gaming Commission to require operators to provide player data to the MGC on a regular basis and to cooperate with researchers; to prohibit live, in-game sports betting, which is disproportionately utilized by problem gamblers; and to restrict advertising and celebrity endorsements, which tend to promote sports betting in young people, precipitate relapse in recovered gamblers, and counteract the effectiveness of messages advocating limited, lower-risk involvement.

Volberg noted that only four states have funded any kind of research about sports betting, while 12 have provided funding for problem-gambling services. This contrasts with Massachusetts, where 9% of the tax revenue raised from sports betting will go into the Public Health Trust Fund that supports research and services to mitigate gambling-related harms.

“We are in a unique position in Massachusetts to be able to monitor the impacts of sports betting as it becomes legal and make adjustments to its provision so as to maximize the benefits and minimize the harms.”

 

Sit Back and Watch

Those benefits, as noted, are uncertain, but operators are excited about the prospects.

For maximum economic impact, SEIGMA’s report recommends issuing licenses for online operators, and a variety of them, since most sports betting is done online. That lines up with the Gaming Commission’s plans.

“While it is likely that sports-book operators, including land-based and online operators, will benefit from sports-betting legalization in Massachusetts,” the study notes, “it is difficult to predict whether sports bettors will add legal sports betting to their repertoire or simply substitute betting on sports for spending on other types of gambling.”

Still, as the leader of the only casino in Western Mass., Kelley sees potential benefits not just for his facility, but for the region itself.

“Massachusetts residents are already driving across the border to Connecticut, Rhode Island, New Hampshire, and New York to place bets. Keeping the millions of tax dollars generated annually by sports wagering in the Commonwealth is a big deal,” he told BusinessWest. In addition, “sports betting at MGM Springfield will bring more foot traffic and visitors to downtown Springfield. We are thrilled at the prospect of not only having more people come and enjoy our property, but to experience all of the amazing businesses nearby.”

To enhance the viewing and gambling experience, the MGM Sports Lounge opened in August 2021, featuring more than 70 lounge seats and a 45-foot state-of-the-art HD viewing wall, inviting fans to watch multiple sporting events at once. A new VIP Sports Lounge also opened last August within TAP Sports Bar, offering a more intimate experience, including a state-of-the-art HD viewing wall.

“As a New England sports fan, I can tell you the MGM Springfield Sports Lounge is the best spot to watch the Patriots, the Red Sox, the Celtics, the Bruins, you name it,” Kelley said. “It’s also just a great place to gather with your friends for a fun night out. As soon as we get the green light, we are ready to incorporate the BetMGM platform into our property.”

Yes, the green light — it’s what many in the gaming industry in Massachusetts have been anticipating for a long time, hoping the benefits of legal sports betting exceed early projections — and outweigh the potential harms.

 

Joseph Bednar can be reached at [email protected]

 

Insurance Special Coverage

Putting a Premium on Measured Growth

Current and future leaders at the Dowd Agencies

Current and future leaders at the Dowd Agencies, from left: Evan Dowd, account executive; John Dowd Jr., president and CEO; Dave Griffin Jr., senior vice president; and Jack Dowd, vice president of Personal Lines.

There’s a framed picture of downtown Holyoke on one wall of the conference room at the Dowd Agencies — downtown Holyoke circa 1870.

The view is looking west along Dwight Street by the first-level canal. City Hall, prominent in the upper-left corner, looks … exactly as it does today. The other side of Dwight Street, not so much — most of the buildings seen in the image have been gone for decades. For perspective, a horse-drawn carriage is moving east down the hill.

John Dowd Jr. said the picture was owned by a long-time client who offered it to him after Dowd repeatedly raved about it. He accepted the offer and gave the picture a prominent home — across the conference room from another framed photo, this one of the insurance company’s founder, James J. Dowd, who went into business just a few decades after that picture of downtown was taken.

Together, the pictures provide some needed perspective — about time, Holyoke, the company, change, what hasn’t changed — and how they all come together. And the juxtaposition of all this will come into even sharper focus in 2023, when the agency, which Dowd claims is the oldest family-owned insurance agency doing business in the Bay State, celebrates its 125th birthday.

“We want to continue to grow, but want to make sure we’re not growing too quickly; we don’t want to get over our skis, as we like to say.”

There hasn’t been much hard planning about how to mark that milestone, he said, adding that he and others will pick up the pace in the coming months and put together some events and programs, as they did for the company’s centennial in 1998.

“We have a few things we’re planning that are in the works,” he said. “We’re trying to do some things that involve the community; overall, it’s an opportunity for us to say ‘thank you’ to the community for supporting us for 125 years and through five generations. That’s an important ‘thank you,’ and we’re thinking long and hard about what we’re going to do.”

In the meantime, the company is taking steps to ensure that it can continue its long history as an independent agency, said Dowd, noting, for example, the latest in a series of recent acquisitions that provide needed size and flexibility at a time of continued consolidation in the insurance industry.

Just last month, the firm acquired the Ideal Insurance Agency in Ludlow, which, like many smaller, family-owned agencies in the area, became available for one of many reasons, ranging from COVID-19 to lack of a clear succession plan to the inability to effectively compete in a market increasingly dominated by larger firms.

photo of downtown Holyoke, circa 1870

This photo of downtown Holyoke, circa 1870, has earned a spot on the wall in the conference room at the Dowd Agencies.

This was the third such acquisition over the past two years, coming after Dowd bought the J. Raymond Lussier agency in West Springfield and the Wilcox agency in Westfield and Feeding Hills. This expansion has given the agency much greater size, and in insurance, as in banking and most all other sectors, size matters, and it bring benefits.

“The advantages come with volume with carriers,” Dowd explained, noting that the firm is roughly 30% larger than it was a few years ago, and almost double the size it was a decade ago. “The more volume you have, the better compensation you negotiate, as well as profit sharing, services, and other perks. We’ve been able to achieve some of that volume leverage through aggregation with other agencies and through M&A.”

Moving forward, the agency will continue to look for opportunities for growth organically, and also through additional acquisitions, said Dowd, adding that it approaches this assignment with an eye toward smart growth and not taking on too much too quickly.

“We want to continue to grow, but want to make sure we’re not growing too quickly; we don’t want to get over our skis, as we like to say,” he noted, borrowing a phrase used often in business to connote getting ahead of oneself with a specific strategic initiative. “A healthy company grows organically and also through M&A. With the M&A, it has to be measured growth, but organic growth is essential — that’s boots on the ground, bringing in new clients, retaining your current clients; that’s good, healthy growth, augmented by acquisition, which comes with debt, which obviously has to measured and balanced.”

Meanwhile, there are other matters to consider, said Dowd, including succession planning for this agency, something that is obviously taken seriously at a company that has been around this long, covets its independence, and wants things to stay that way.

For this issue and its focus on insurance, BusinessWest talked with Dowd about … well, everything conveyed by those two photos in the conference room.

 

Cover Story

Dowd told BusinessWest that the phone calls come maybe once a week, or five or six times a month on average.

They’re from representatives of private-equity firms who want to know if Dowd Insurance might be for sale, and, if so, under what circumstances. He tells them ‘no,’ and in a polite way — at least the first time they inquire.

“I’ll usually have one conversation with them and let them know that we’re not interested in selling and are happy to stay the way we are. And then when they call the next month with the same question, my patience starts to wane, and I start to wonder about how obligated I am to answer every email and every phone call, especially when I’ve already talked to them and told them my plan.”

“They are relentless,” said Dowd of those on the other end of the phone. “I’ll usually have one conversation with them and let them know that we’re not interested in selling and are happy to stay the way we are. And then when they call the next month with the same question, my patience starts to wane, and I start to wonder about how obligated I am to answer every email and every phone call, especially when I’ve already talked to them and told them my plan.”

These days, there are even more people calling and asking about the agency, he noted, and that’s because of those acquisitions over the past few years and the scale they generate.

It’s a somewhat minor annoyance, and at the same time a reminder of the agency’s track record for success, he said, adding, again, that he is polite, but only to a point.

Dowd has other matters to occupy his time, he noted, adding that, overall, the firm is still trying to make its way all the way back to where it was before the start of the pandemic, especially with “behind-the-scenes” work, as he called it, when it comes to quality, efficiency, and serving clients.

“We have a quality team that evaluates what we do and how we do it,” he explained. “They would get suggestions every month from anyone on the staff — ‘here’s an area that I think we can look at and get better at’ — and the quality team would research and come to us with suggestions for developing a plan. That’s an example of an area where we lost some momentum.”

Some momentum was also lost when it came to connecting with potential new customers, he went on, adding that this put far greater emphasis on growth through acquisition, which is exactly what the company did.

“From a revenue standpoint, we were flatlining — if we held onto everything,” he explained. “And we didn’t hang onto everything because businesses were closing. It was a scary time because there was so much uncertainty. But then came the M&A opportunity, and we looked at it and said, ‘this is not a great time to be taking on some debt, but we think this is prudent.”

John Dowd Jr., seen here next to a photo of the company’s founder, Joseph Dowd

John Dowd Jr., seen here next to a photo of the company’s founder, James J. Dowd, says the Dowd Agencies targets controlled, ‘smart’ growth, both organically and through acquisition.

Elaborating, he said the agencies that came into consideration were good fits, culturally and otherwise, and under normal circumstances, they would be consider logical acquisitions. The circumstances weren’t normal, but the times dictated some aggressive action.

“Sometimes you’ve got to stick your chin out there and, when opportunity knocks, take advantage of the opportunity,” he said, adding that this is just what the firm has done.

In doing so, it has put itself in and new different position — an independent agency of considerable size — and it is determined to sell both of those qualities.

“We’re a good-sized agency, certainly in Western Mass., and the only one of our size that is still independently owned — not owned by one of the big guys,” he said. “We like that distinction, and we use it to our advantage. We’re totally local — not only do we live and participate in our community here, we’re also locally owned, and profits go right back here in to Western Mass., and not Chicago or anywhere else.”

But with that independent status comes the challenge to compete with those often much larger concerns, Dowd explained, adding that this challenge, as in banking and other sectors, is very real and becoming more stern with each passing year.

“We’re at a point now where getting to the next level requires a higher level of sophistication in just about every area,” he said. “Obviously, technology is huge because it creates the efficiencies we need. Meanwhile, the labor market is extremely difficult and challenging right now.

“The investment in technology and the way we staff ourselves, the levels of management … all of these important areas have to be looked at and adjusted accordingly,” he went on. “You can’t keep doing things the way you were when you were half the size. You have to be forward-thinking in this business; you have to be looking ahead and be prepared for what may come, and you know the unexpected will happen. You have to be nimble enough to be able to adjust.”

 

Prudent Policy

As he looks forward, Dowd sees the agency doing what it has been doing all along and especially over the past decade or so — seeking to grow organically, but also looking for opportunities to grow through acquisition and expand geographically.

The agency currently has nine locations, all in Western Mass., but it is exploring options well beyond this area code, he noted.

“We’ve looked at Northern Connecticut, we’ve looked at acquisitions in Vermont and New Hampshire, and we’ve also looked at Eastern Mass., toward Worcester, working our way in that direction,” he said, adding that, while the agency serves clients in those areas and others, including Boston and New Jersey, it does not have a physical presence in those locations, but could attain some if the conditions are right.

“In our business, it’s about where your network of contacts takes you and what your appetite for challenge is,” he told BusinessWest. “Do you want to do what it takes to be regional and available and able to support services? You just have to be realistic that you can do what you say you can do.

“We’re careful and selective with regard to companies where there’s some distance,” he went on. “But we’re looking at some relationships in New York right now where we could possibly have an ofice and be able to operate similarly, but on a smaller scale, to what we’re doing here.”

Overall, there are a number of ways to get to the proverbial next level in terms of size and revenues, he went on, adding that, while remaining independent is the preferred route, the agency will consider all its options. “We’re evaluating what steps we need to take in order to continue to grow and build the company.”

Returning to those phone calls he gets from the private-equity firms, Dowd noted, again, that he doesn’t take many of those calls anymore.

“I feel bad about that, but not too bad,” he explained. “I get a lot of messages — they call and they say they’re from such and such firm, and he’s calling again; I talked to him a year or two ago and told him I’ll call if anything changes.”

Nothing has really changed, at least on that front, he went on, adding that there has certainly been change with regard to the company’s size, reach, and position among area agencies.

Over the course of 124 years, many things have changed, but the most important ingredient hasn’t — this is still an independent, family-owned agency.

And as it prepares to mark another important milestone, that’s a quality worth celebrating.

 

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

Special Coverage Technology

A New Gig

SHELD General Manager Sean Fitzgerald

SHELD General Manager Sean Fitzgerald

‘Ahead of schedule and under budget.’

Those are the words that any business owner or board of directors would love to hear regarding a specific project or undertaking. They are not heard often, to be sure, and they are being heard even less frequently, if at all, in these days of soaring inflation, supply-chain issues, and a workforce crisis.

But that phrase can certainly be applied to the ongoing work of the South Hadley Electric Light Department (SHELD) to provide commercial and residential customers in that community with fiber internet service, a project that had the additional challenge of being launched only months before the pandemic arrived in Western Mass.

“In the last financial report we gave to the board, we were under budget and ahead of the construction schedule,” said Sean Fitzgerald, SHELD’s general manager, noting that roughly 75% of the town now has fiber service, with the rest to be built out by July 2024.

The fiber program, which had been known as Fibersonic, has been rebranded as Fiberspring to avoid any potential problems with another internet provider using ‘sonic’ in its name, said Fitzgerald (more on this new name later). It now boasts more than 1,600 customers, including residents, businesses, municipal entities, public schools, and the majority of town departments, and to say the initiative has been successful and is turning some heads would be an understatement.

Indeed, the early success in South Hadley has led to new agreements to provide internet service to nearby towns Leverett and Shutesbury, and inquiries from, and preliminary talks with, other communities, said Fitzgerald, adding that SHELD’s board of directors must now decide just how entrepreneurial it wants to be with this product.

Indeed, the Fibersonic program, similar in many ways to a fiber initiative launched by Westfield Gas & Electric — which Fitzgerald was part of — was initiated with the simple goal of providing better, more reliable service to South Hadley residents and businesses. But its pattern of success, the new contracts with Leverett and Shutesbury, and the potential to add more small towns and even larger communities (there have been talks with Easthampton) have the potential to turn this into a dynamic new profit center for SHELD.

“Customers are streaming more; they’re going into Best Buy, they’re buying a TV that is all streaming,. And with the internet of things, with everything from doorbells to vacuum cleaners connected to the internet, people are increasingly concerned about bandwidth and performance.”

“Originally, the vision from the board was not to expand; it was to improve quality of life for residents of South Hadley — that was the initial plan,” Fitzgerald said. “But in doing that, other towns became aware of us being an option; we did it very well, and we did it to what I would call the gold-standard level, so these expansion opportunities have fallen into our lap.”

SHELD has scheduled a strategic planning event for October, at which discussions will be had about where the utility can go from here with its fiber endeavor and whether further expansion should be pursued.

“That’s a discussion point that the board and I will have to have — how aggressive should we be as a municipal light plant in going after expansion of fiber?” he said, noting that, with scale, the utility can ultimately reduce the cost of the service it provides. “And these are questions we don’t have full answers to yet.”

For this issue and its focus on technology, BusinessWest talked with Fitzgerald about what is now officially known as Fiberspring (the recently detailed trucks with the brand can be seen on the roads), and what the next chapters in this intriguing story might be.

 

A New Gig

‘Big Gig.’ ‘Fiber Galaxy.’ ‘Gazoo.’

Yes, Gazoo, the extraterrestrial character from the old Flintstones cartoon show.

These are just some of the dozens of names Fitzgerald and his team at SHELD considered as they went about rebranding Fibersonic in conjunction with Darby O’Brien Advertising, the South Hadley-based firm that has developed a strong reputation for helping businesses and nonprofits with such endeavors.

As they talked about the process, Fitzgerald and O’Brien said potential new names would be tossed around, with their merits and shortcomings weighed, before most all of them would have to be discarded because they had been completely, or partially, trademarked by someone else. Such is the growth of this sector of the economy, where the word ‘fiber’ has been attached to just about every conceivable noun.

one of utility’s trucks with the new brand, Fiberspring

General Manager Sean Fitzgerald shows off one of utility’s trucks with the new brand, Fiberspring.

Oddly, and both O’Brien and Fitzgerald thought it was odd, and that’s why they made very sure that Fiberspring was not trademarked. That’s the colorful brand name — literally and figuratively — now, or soon to be, seen on trucks, business cards, letterhead, and everything else.

By whatever name it goes, South Hadley’s new telecom business has become an intriguing success story, one that begins with SHELD’s hiring of Fitzgerald in 2017 with the intent of launching a business division to bring fiber to the home. As noted, Fitzgerald had been working for Westfield G&E and had developed the business component for that municipal utility’s Whip City Fiber project.

What eventually emerged in South Hadley was a $17.4 million initiative, said Fitzgerald, with roughly $15 million going toward fiber construction, with the other $2.4 million in funding needed for advanced meter infrastructure, or AMI. It was financed mostly through a $12 million bond secured through the Massachusetts Municipal Wholesale Electric Co. at a favorable 2.7% rate.

As he assembled a team to take this new business division, named Fibersonic, off the drawing board and make it reality, Fitzgerald borrowed from the successful Whip City model in many respects.

These include everything from ordering materials well in advance — a strategy that has brought dividends in these times of supply-chain issues and soaring prices — to the concept of ‘fiberhoods’ — bringing fiber to a community neighborhood by neighborhood.

As he gestured to a map of the town on a large screen in the SHELD conference room, Fitzgerald noted that there are many fiberhoods in South Hadley now, with those currently without fiber to be completed by 2024.

As neighborhoods become fiberhoods, the ‘take rate,’ as it’s called, a statistic that tracks how many households are signing up for the service, is roughly 43%, a good number that grows higher as more residents add the gig-speed service and word of mouth spreads about its speed and reliability.

And as more and more household devices and appliances are driven by the internet — everything from lighting to security to thermostats — demand for fast, reliable service grows.

“Customers are streaming more; they’re going into Best Buy, they’re buying a TV that is all streaming,” he noted. “And with the internet of things, with everything from doorbells to vacuum cleaners connected to the internet, people are increasingly concerned about bandwidth and performance.”

As for ordering materials ahead of schedule, that has been one of the keys, along with a solid team, effective buildout strategy, and staying under budget and ahead of schedule, Fitzgerald said.

“We proactively ordered our equipment and materials in advance, before we knew COVID was coming,” he explained. “I learned that in Westfield, and it was a great strategy.”

As South Hadley adds more fiberhoods, it’s becoming apparent that SHELD’s fiber-service initiative could expand well beyond the borders of that town.

Indeed, just as Whip City Fiber has moved beyond Westfield and into the surrounding hilltowns, Fiberspring is now expanding into other communities.

Shutesbury, northeast of South Hadley, was the first town to enter into a contract with the company, and Leverett, which borders Shutesbury, followed soon after. Those two communities, which both had existing networks in place, will bring another 3,000 customers into the fold.

After that … Fitzgerald said there is potential to expand the footprint in several directions.

“We could go pretty much anywhere in this region,” he told BusinessWest. “The key is the truck rolls — if you have to roll a truck to a customer, you need to be able to reach that customer in a reasonable period of time. If a town in New Hampshire or Maine wanted to hire us, we could do it, but we would probably have to put a satellite building there or a small hub or hire technicians that live in that area.

“Just as Westfield is now serving a number of hilltowns, we can now do the same,” he went on, adding that Fiberspring is now competing with Westfield and other providers. “These towns chose us because of our team and our ability to serve them.”

Moving forward, Fitzgerald said there will be several factors that will determine if, when, and to what degree Fiberspring expands.

“First and foremost, we don’t want to negatively impact the service that we provide to South Hadley — those customers are priority one,” he explained. “Second, we want to make sure we have enough resources to adequately perform any of those contracts. And third, does it make sense for our customers? The whole reason we’re doing this is to reduce the cost to the South Hadley customers and at the same time provide a good service to Shutesbury. But ultimately, we need to show cost savings for South Hadley customers, who are our owner, which we will do with these contracts.”

 

Speed Thrills

Summing up where the telecom business now known as Fiberspring is, and where it could be a few years or a decade down the road, Fitzgerald said everything is happening faster than he or the SHELD board anticipated.

That statement goes for everything from the buildout in South Hadley — again, it’s ahead of schedule — to the expansion of the business into neighboring communities.

That’s a good problem to have — if it’s even a problem — and a business story that bears watching in the months and years to come.

In other words, this new gig — as in gig — has vast potential to be a huge player in this market.

 

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

Opinion

Editorial

 

President Joe Biden famously, and matter-of-factly, announced recently that the pandemic is “over.”

Whether that’s true or not remains to be seen, but what isn’t in question is the fact that, while the pandemic may indeed be a matter for the past tense, businesses large and small continue to face a mountain of challenges, many of them stemming directly or indirectly from the pandemic.

This much was made clear in a recently released MassINC survey that revealed, among other things, that just over half the businesses polled, 53%, are reporting revenues lower than before the pandemic.

Meanwhile, inflation is at a 40-year high, supply-chain issues persist, a labor shortage continues, the Great Resignation is far from over, and now there is apparently a new workforce issue to contend with — so-called ‘quiet quitting,’ whereby employees don’t officially leave their jobs; they just do the bare minimum.

We’re not sure if quiet quitting is a byproduct of the pandemic or not — it’s a relatively new phenomenon, and there is not much data on it — but just about everything else is, from inflation to the supply-chain issues to the persistent problems companies are having with staffing up.

So while it’s good to hear that the pandemic is over — at least in a technical sense; we’re now told that COVID is in the same category as the flu — the ‘normal’ that everyone in the Western Mass. business community was seeking ever since we first heard of COVID seems like it is still a long way off.

Especially with growing talk about a recession, when it will come, how severe it will be — and whether or not we are already in one, which many economists already believe we are, as well as headlines about soaring energy costs and escalation of fighting in Ukraine.

Maybe the biggest issue, though, is the Federal Reserve’s ongoing fight against inflation. The Fed recently raised interest rates again, this time by three-quarters of a point for the third straight time, an aggressive tactic that might — that’s might — bring inflation back down to its 2% goal, but at a potentially high cost when it comes to the economy and the plight of businesses large and small.

Indeed, the tactics used to fight inflation may well tip the economy into a recession and, in the meantime, make it harder for businesses to attain the capital they need to expand, prompting more job cuts; many businesses have already gone from hiring to laying people off. Fed policy makers are projecting that the jobless rate will reach 4.4% by the end of 2023, up from its current level of 3.7%.

Overall, the cure may be worse than the disease, as the nation witnessed 40 years ago, when, to tame inflation, the Fed pushed the country into a protracted recession.

President Biden also said recently that he believes that a “soft landing” is possible for the economy. Perhaps, but many economists are predicting a much harder fall.

That’s not what area business owners want to hear after two and a half long years of battling the pandemic and its many side effects.

Technically speaking, the pandemic is over, but the challenges remain. We said back in March 2020 that the local business community was resilient and up to the challenge. We still believe that, but this resilience is certainly being tested, and the quest for normal — whatever that is — goes on.

Incorporations

The following business incorporations were recorded in Hampden, Hampshire and Franklin counties and are the latest available. They are listed by community.

AGAWAM

Nakaru Trans Inc., 238 Cooper St., Agawam, MA, 01001. Alexander Gribanov, same. Transportation services.

AMHERST

PGD Foodie Group Inc., 200 West Pomeroy Lane, Amherst, MA 01002. George Ducharme, same. Restaurant.

CHICOPEE

M & V Cleaning Services Corp., 55 Gilmore St., Chicopee, MA, 01013. Wilton Da Silva, same. Janitorial cleaning services.

Nesterchuk Home Improvement Inc., 280 College St., Chicopee, MA, 01013. Nikolay Nesterchuk, same. Home Improvement.

EAST LONGMEADOW

Apollo Medical Inc., 127 Country Club Dr., East Longmeadow, MA, 01028. David Laporte, same. Medical device sales.

EASTHAMPTON

Strategic Consulting Solutions Inc., 147 West St., Easthampton, MA, 01027. Loren Davine, same. Consulting services.

GREENFIELD

M2B Home Delivery Inc., 139 Silvio O. Conte Dr., Greenfield, MA, 01301. Adam J. Provost, same. Retail sales.

HOLYOKE

Restaurante La Isla Corp., 161 High St., Holyoke, MA, 01040. Yanercy Diaz De La Cruz, same. Restaurant.

LUDLOW

Iglesia El Candelero De Dios, 182 Howard St. Apt 1R, Ludlow, MA, 01056. Gerson Crespo, 83 Windsor St. Ludlow, MA 01056. Religious organization designed for the purpose to train leaders, teach bible, preach the gospel and serve the needs of the community.

MONTAGUE

Project Nadiya Inc., 70 Main St., Montague, MA, 01351. Nadezhda Tkachenko, same. Build, refurbish and manage housing in the Ukraine and surrounding countries for the purpose of providing shelter for displaced persons impacted by war and unrest.

PITTSFIELD

Easnott Inc., 987 North St., Pittsfield, MA, 01201. Desiree Eason, same. 24-Hour community care services.

Marvelous, Elegant, Lifestyle (M.E.L.) Inc., 82 Wendell Ave. Suite 100, Pittsfield, MA, 01201. Matsuko Leathers, same. Elegant lifestyle.

SS Productions, 82 Wendell Ave., Suite 100, Pittsfield, MA, 01201. Sarah Seymour, same. Media production and art services.

SOUTH DEERFIELD

Soulive Music Group Inc., 2B Duncan Dr., South Deerfield, MA, 01373. Alan Evans, same. Music performances and recording services.

SOUTHAMPTON

Hypnosage Inc., 4 Manhan Road, Southampton, MA, 01073. Saskia Coté, 510 Blisswood Village Drive Ludlow, MA 01056. Alternative therapy and retail products.

SPRINGFIELD

All Empire Inc., 172 Lebanon, Springfield, MA, 01109. Robert Elliotte Flowers, same. Home improvement services.

Pacc Transition Inc., 819 Worcester St., Ste. 1, Springfield, MA, 01151. Adnan Dahdul, same. Holdings company.

Shida Inc., 590 Boston Rd., Springfield, MA, 01119. Awel Mehemed-Aman Adem, 51 Washington Road, Springfield, MA 01108. Convenience store.

Youth Educational Services Inc., 174 Marion Street Unit 2, Springfield, MA, 01109. Sonya Barber, P.O. Box 90933 Springfield, MA 01139. Tutoring for youth and young adults. Assisting high school students in applying to colleges or technical schools.

WESTFIELD

Bee-Shine Spa Inc., 38 Salvatore Dr., Westfield, MA, 01085. Magali Vinces, same. Nail salon and spa.

O.J.M. Pik Reno Corp., 3 Lozier Ave., Apt 1, Westfield, MA, 01085. Oleh Pikulskiy, same. Construction services.

Boos E-Bikes Inc., 9 Old Orchard Road, Wilbraham, MA, 01095. Mirian Santos Costa, same. Retail sales of motorcycles and scooters.

Cannabis Special Coverage

Cannabis in Flux

Aaron Vega

Aaron Vega says cannabis has been a definite economic driver in Holyoke’s downtown and canal district.

 

According to the Cannabis Control Commission (CCC), legal marijuana is now an annual $3 billion business in Massachusetts.

The communities that have embraced it from the beginning, like Holyoke, can attest to cannabis as an economic driver in terms of commercial real estate, jobs, and other opportunities. The city now has four dispensaries, three grow facilities, and a testing lab up and running, with dozens of other applications at various stages of the permitting process — a process, city Planning & Economic Development Director Aaron Vega said, that was always intended to be easy to navigate.

“This community voted in favor. The mayor was in favor. As a state representative, I was in favor. And we didn’t want to make it more difficult. It was challenging enough with the regulations coming down from the state. We saw this as an industry that could take over some vacant and underutilized buildings, and that’s what informed how we went forward.”

That has indeed occurred. “We’re very excited about the investment that has happened — tens of millions invested in these downtown buildings because of cannabis, and 500 jobs that didn’t exist three years ago,” Vega said, noting that the cannabis enterprises themselves aren’t an endgame, but a way to spur even more investment.

“What do you do with 500 people? You make sure they’re going to your concerts, going to your restaurants and events, utilizing your local food trucks. And then there’s the ancillary businesses to the cannabis industry; how do we lure them to the city and make it even more beneficial for companies to do business in Holyoke?”

Other cities and towns have, to varying degrees, told similar stories. But the host-community agreements they’ve put forward have not always been well-received, and that was one of several issues addressed last month by a multi-faceted cannabis bill passed overwhelmingly by the state Senate and House of Representatives and signed into law by Gov. Charlie Baker.

“We saw this as an industry that could take over some vacant and underutilized buildings, and that’s what informed how we went forward.”

Among its main elements, the law clarifies the host-community agreement (HCA) process by authorizing the CCC to prioritize social-equity program businesses and economic-empowerment priority applicants for expedited review.

It also clarifies the scope of HCAs and adds new criteria, mandating that no host-community agreement can include a community impact fee that is beyond the business’s eighth year of operation, the community-impact fee must be reasonably related to the actual costs required to operate a cannabis business in a community, the CCC must review and approve each HCA as part of the license application and renewal process, and all host communities must establish procedures and policies to encourage full participation in the regulated marijuana industry by people from communities that have been disproportionately harmed by marijuana prohibition and enforcement.

“Communities of color across our country have historically been criminalized, prosecuted, and left out of the conversation in regards to cannabis legalization,” state Sen. Adam Gomez said. “When cannabis was legalized in Massachusetts, those same communities continued to be barred from the conversation table and left behind, with historic barriers preventing them from growing small businesses in meaningful ways. The legislation passed by the legislature will remove those barriers.”

The law also expedites the expungement process, Gomez noted. For individuals seeking to expunge a record for previous offenses that are now decriminalized, the law requires the court to order the expungement of the record within 30 days of the request and expunge records for possession or distribution of marijuana based on the now-legal amount.

“It is incomprehensible that anyone who was charged with a marijuana-related offense still has that on their record in our state, especially when you can drive down the street to a dispensary to buy the same product that that person was arrested for,” Gomez said. “I was proud to support this legislation and can’t wait to see cannabis businesses run by BIPOC owners flourish as a result.”

 

Growing Pains

The law makes other major changes as well, including a clarification of the local social-consumption approval process.

The advent of what’s known as cannabis cafés will give renters, public housing tenants, and tourists a legal place to use a legal substance. Under this legislation, a city or town may allow for social consumption sites through the passage of a bylaw or ordinance.

The legislation also creates a trust fund to make grants and loans to social-equity program participants and economic-empowerment priority applicants, which will give entrepreneurs from communities that have been disproportionately harmed by marijuana prohibition and enforcement better access to grants and loans to get their businesses off the ground.

In addition, 15% of the revenue collected from the sale of marijuana and marijuana products must be transferred to the Cannabis Social Equity Trust Fund, which will be administered by the Executive Office of Housing and Economic Development in consultation with a newly created Cannabis Social Equity Advisory Board.

“It is incomprehensible that anyone who was charged with a marijuana-related offense still has that on their record in our state, especially when you can drive down the street to a dispensary to buy the same product that that person was arrested for.”

“This legislation will create a more equitable cannabis industry in the Commonwealth,” said state Sen. Jo Comerford, noting that lawmakers “approached this issue with expertise and compassion, and the resulting bill will bring more diversity and equity to this industry.”

House Speaker Ronald Mariano added that “the passage of this legislation will help to ensure that those who have been historically impacted by marijuana prohibition can find new opportunity in the emerging industry. This legislation will help to support folks who have faced generations of inequality secure the needed capital to launch a cannabis business.”

The loan fund highlights one of the challenges of starting a business that’s technically illegal under federal law. Although there have been rumblings that the U.S. Congress could move to decriminalize cannabis and open up traditional financing to such businesses, nothing has been done so far.

“It’s still a hard-money business,” said Tim Sheehan, chief Development officer for the city of Springfield, and that affects both entrepreneurs and property owners. “That’s challenging from a real-estate standpoint. If that were to change, it would provide a more stabilized financial underpinning for the industry itself, and obviously, that would translate into folks that have space feeling far more comfortable in terms of the security they have relative to leasing and everything else. It would be accepted in the mainstream financial market.”

While Springfield didn’t embrace cannabis in the unfettered way Holyoke did — the city has put forward two rounds of retail applications and one for a grow facility, but that project, by Page Cultivate LLC in East Springfield, was derailed by the City Council in May over a site-plan change and other concerns — many of its leaders recognize the economic value of the burgeoning industry.

“Once it was legalized, there was clearly a focus on it becoming an economic benefit for the city,” Sheehan said. “Much like when gaming was legalized, we looked to see what the economic potential of the cannabis industry would be relative to both city finances and economic impact in terms of the marketplace.

“Much like when gaming was legalized, we looked to see what the economic potential of the cannabis industry would be relative to both city finances and economic impact in terms of the marketplace.”

“Obviously, the industry has had an impact on storefront and warehouse space, and I would quantify that as a positive impact,” he went on, adding that it remains to be seen what kind of impact the cannabis trade will have on the surrounding residential real-estate market.

“Caution is the watchword. As an industry, it remains to be seen what the saturation point is, and I really think that needs to be factored in through the process with regard to how many of these establishments you’re going to allow, whether it be a grow facility or how many retail establishments you’re going to allow. There is a limited market.”

 

In the Weeds

The cannabis industry’s potential is still unknown, though the early results in terms of new businesses, tax revenues to communities, and jobs have been positive.

But Sheehan is right that no one really knows what the saturation point is, if there is one. And the Legislature’s sprawling cannabis bill last month was an admission that plenty about the permitting process — especially for traditionally disenfranchised communities — needs to be addressed.

As Senate President Karen Spilka put it, “I am thrilled we were able to reach a deal on this bill, which will take meaningful steps toward ensuring communities who have historically been harmed by marijuana criminalization can access resources to enter this industry.”

 

Joseph Bednar can be reached at [email protected]

Insurance

Water, Water Everywhere

By Peter Normand

 

According to a 2020 report from the First Year Foundation, there were 336,000 properties in Massachusetts alone that were at some level of risk for flooding. This number is 65% higher than the existing flood maps indicate.

The heavy rains of last summer and the claims that followed got me wondering what the future holds. We are beginning to feel the impacts of climate change in more severe and less predictable weather. How valid are our flood maps? What can property owners do to protect their property in an uncertain future? If you haven’t talked about flood insurance with your insurance agent yet, now is the time.

Banks require flood insurance on all properties that are located in a flood zone per existing flood maps. Why do they do this? Commercial and homeowners policies exclude flood as a cause of loss. Nearly all of my commercial insurance clients who have flood insurance have purchased it to satisfy a loan requirement. Nearly everyone else is rolling the dice — most stating that, since they aren’t in a flood zone, it’s not an issue. After a very wet summer of 2021, however, the conversation is changing, even if this summer has been drier.

Let’s start off by defining what a flood is. Floodsmart.gov notes that “flood insurance covers losses directly caused by flooding. In simple terms, a flood is an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties.” Just because there is water in your basement doesn’t mean it’s a flood. In fact, water seeping into a foundation without the above definition being met would not be covered by flood insurance. When determining whether or not there is coverage, the cause of the flooding that damages your property does matter.

On the market side, there are more options than ever, with more carriers offering a flood product. This leads to more flexibility for our insureds. For example, some markets allow for multiple properties on a single policy, some carriers offer limits in excess of NFIP (National Flood Insurance Program) limits to adequately insure the value of the property, there are replacement cost (RC) and actual cash value (ACV) valuations, and more competition has created market pressure on premiums, especially for properties outside of flood zones.

With changing weather patterns and other unknowns, it’s reassuring to know that there are options. If you haven’t considered flood insurance in the past, or have been putting it off, now is the time to talk to you insurance agent. There is an expanding market with options to meet your specific exposures and needs.

 

Peter Normand is a Commercial Lines account executive and RiSC consultant with Webber & Grinnell Insurance.

Guide to Senior Planning Special Coverage Special Publications

Preparing for Life After 65

When people think about strategizing for their senior years, they often see it as a downbeat task, one marked by growing incapacity, financial stress, and, well, dying.

That’s not what this guide is about, although it definitely contains plenty of information about what to do before that day comes. But the goal isn’t planning to die; it’s making sure you get all your plans in order — from where you or your loved ones will live to how finances will be distributed — so you don’t have to worry about it. You can, instead, enjoy life.

 

And that planning is an increasingly important task. According to the U.S. Census Bureau, the number of Americans age 65 and older rose from 35 million in 2000 — 12% of the population — to 56.1 million, or 17%. By 2030, the bureau estimates, more than 21% of U.S. residents, about 73.1 million, will have passed their 65th birthdays.

That’s a lot of people. And a lot of planning. And a lot of living left to enjoy.

Achieving your goals — and your desires for your loved ones — requires careful thought, and that’s where our annual Senior Planning Guide comes in. So let’s sort through some of the confusion and get those conversations — and the rest of your life — started.

 

Opinion

Editorial

 

It took a few years longer than it should have, but sports gambling finally seems to be a reality in the Bay State.

The Massachusetts Legislature recently approved a sports-betting bill, and Gov. Charlie Baker has signed it into law. If all goes well — something that doesn’t happen often in this state — systems should be in place for sports betting for later this year and certainly by the time the Super Bowl rolls around next February.

This news is cause for celebration in the state’s three casinos, which have been pushing hard for such a measure, and for good reason. Gaming revenues have certainly not been what they were projected to be nearly four years after MGM Springfield opened its doors to great pomp and circumstance. And the lack of sports betting has given gamblers one more reason to cross the border and go to facilities in New Hampshire, Rhode Island, Connecticut, and New York. Sports betting seemed to always make sense as a way to help these casinos improve traffic, bring more revenue to the state, and add some jobs. But that didn’t stop the Legislature from doing what it does all too often: sit on its hands.

Indeed, state lawmakers tend to overthink these things, if that’s even the right term, and this leads to indecision. It happened with gaming for several years, and it happened with sports betting as well.

After four years of “painstaking work and research,” as state Sen. Eric Lesser called it, the Legislature was able to come to an agreement on a bill providing for both retail and mobile sports wagering, one that will allow betting on college sports, with some restrictions, and also comes with a number of consumer protections. These include a provision whereby, for online and mobile betting, bets cannot be linked to credit cards — a measure implemented to make sure consumers are wagering with funds on hand and not borrowing.

Projections of revenues vary, but the measure is expected to bring in more than $35 million annually. That’s not a huge number, but right now, it’s money that’s going elsewhere, and that the state could put to good use in areas ranging from workforce development to public health.

The state is once again late to the party. But late is better than never — or even later. v

 

Community Spotlight

Community Spotlight

 

Mayor William Reichelt

Mayor William Reichelt says West Springfield is making significant progress on many of the goals he set when first elected in 2015.

While the country will be celebrating its 250th birthday in 2026, West Springfield will mark that same milestone two years earlier.

And the planning for what will be a huge party is very much underway, said Mayor William Reichelt, noting that a committee has been put together, chairs of that board have been selected, and a dialogue will soon be launched with town residents to determine how, where, and in what ways they want to observe that birthday.

And while two years will go by quickly, especially with all this planning and execution to handle, this community that operates as a city but still calls itself a town could look much different by the time the big party kicks off.

Several of its major roadways, including Memorial Avenue and sections of Route 5, will be redone or in the process of being redone (hopefully the former, said the mayor as he crossed his fingers — figuratively, anyway) by then. There will be some new businesses on those stretches — Amherst Brewing is moving into the former Hofbrauhaus property, for example — and some of them well before 2024. And there may actually be some cannabis-related ventures in this town that has thus far said ‘no’ to this now-booming industry; a critical City Council vote on the matter took place on July 18, just after this issue of BusinessWest went to press, and Reichelt, who backed a measure to permit the licensing of such establishments, was confident that he had the requisite six votes for passage.

“Once I got into this, there was so much I wanted to do, and I quickly realized that nothing happens fast.”

“We’re in a much different place than we were four years ago, when it was 8-1 [against],” he said, adding that the measure would enable businesses to be located on large stretches of Riverdale Street, the preferred location among those in that industry.

And there is a chance, albeit a slight chance at this point, that the massive power-generating plant near the rotary at the Memorial Bridge may disappear from the landscape it has dominated for decades. Indeed, it has been decommissioned, and its owners are deciding what to do with the property.

“We’re in discussions now about what remediation will look like; I would like to see a clean site so another developer can do something with it, but we’re still in the talking stage,” Reichelt said, adding that the community is looking closely at what happened with a similar but larger property in Salem that is being redeveloped.

The renovated 95 Elm St., now known as Town Commons

The renovated 95 Elm St., now known as Town Commons, features an eclectic mix of businesses and will soon add a restaurant.

But enough about what might and might not happen over the next two years. For now, West Springfield and its mayor are making progress on many of the goals he set down when he was first elected in 2015, including infrastructure, new schools and additions to existing schools, attracting new businesses, and creating what he called a “walkable downtown” with plenty of attractions.

Early on, he said he wanted to create ‘another Northampton.’ “But people have this weird dislike of Northampton, for some reason, so now, we say we want it to be like West Hartford,” Reichelt noted, adding that his community is certainly moving in that direction with initiatives ranging from a walking trail and improved infrastructure along the historic town green to the reinvention of 95 Elm St.

Formerly home to United Bank and still known to many as the ‘United Bank building,’ the three-story office complex is now home to a mix of businesses, and a new restaurant will soon be added to that mix.

For this, the latest installment of its Community Spotlight series, BusinessWest turns its focus on West Springfield and the many forms of progress being seen there.

 

Party Planning

Returning to the subject of the 250th birthday party, Reichelt said the wheels are in motion for that celebration, and some pieces are starting to fall into place.

That list includes a special commemorative 250th birthday beer to be created by Two Weeks Notice Brewing, which set up shop in West Springfield several years ago and has established a firm presence in the community; no word yet on just what this brew will be or what it will be called.

Meanwhile, old documents and photos are being collected, and a commemorative history — a significant update to one produced for the 200th birthday in 1974 — is being planned, said Reichelt, adding that there is preliminary talk of staging an event similar to the Taste of West Springfield that was put on for many years by the community’s Rotary Club.

“We’re talking about bringing something like that back, maybe with a food truck festival on the common,” he said, reiterating that planning for the 250th is still very much in the early stages.

And while this planning continues, officials are making progress on a number of different fronts in the community, everything from the planning of infrastructure work on Memorial Avenue and Riverdale Street to determining how to spend roughly $8 million in ARPA funds (other infrastructure projects are at the top of that list) to contemplating what might be done if that massive power plant actually comes down.

Reflecting on that list, and his first six and half years in office, Reichelt, now one of the longest-serving mayors in the region, said he’s learned during his tenure that it often (always?) takes a long time to get something done, and, as a result, communities and those who lead them must be patient and perseverant.

“Once I got into this, there was so much I wanted to do, and I quickly realized that nothing happens fast,” he told BusinessWest. “Projects that I started talking about back in 2016 … we’re just starting to get funding for and breaking ground now.”

As an example, he pointed to the last remaining piece, the restaurant at 95 Elm St., something he’s been pursuing for years and an element he believes will be a nice compliment to what already exists on that street — a few restaurants, the Majestic Theatre, and a bagel shop already at 95 Elm — and make the area more of a destination.

Hofbrauhaus

At top, the town common now boasts new walking paths. Above, the former Hofbrauhaus property will become a new site for Amherst Brewing.

It’s also taken some time to make the planned improvements to the green area, which now boasts new traffic lights, improved intersections, and a half-mile loop for walking and other uses, said the mayor, adding that a similar upgrade is planned for Elm Street.

“We want to bring people downtown and have it be a spot where you can walk around, go to the theater, have dinner in a couple of different places … make a night of it,” he said. “We have great commercial corridors on Memorial Avenue and Riverdale, but there’s no real place for people in town to go; to have a walkable downtown would be nice. It’s nice to see come that come to fruition after six years.”

Meanwhile, there are ambitious plans on the table for improving the full length of Memorial Avenue, from the Route 5 rotary to the recently widened Morgan Sullivan Bridge. The $25 million, state-funded project is slated to commence next April, and it will take two years to complete.

Significant work is also planned for Route 5 (Riverdale Street) and specifically the stretch north of I-91, said Reichelt, adding that the broad goal is to redevelop that section of the street, which has always been far less popular with retailers than the stretch south of the highway.

“There’s this perception … businesses have no desire to be north of the I-91 overpass,” he said. “They all want to be between the overpass and East Elm connection, where are no vacancies.”

As for the aforementioned power plant, it is very early in the process of deciding what its fate will be, said Reichelt, adding that, if all goes well, the community could have 10 acres of land right off Route 5 and Memorial Avenue that could be redeveloped for a number of uses. There is a landfill next door, so there are some limitations, he noted, but industrial, commercial, and infrastructure opportunities exist, including a connection to the rotary so that motorists can go both north and south from Agawam Avenue.

 

What’s Down the Road

But much of the attention is now focused on cannabis-related businesses, that July 18 vote, and what will likely happen if that measure passes.

At present, the only business allowed in West Springfield for cannabis-related ventures is to advertise their products and services on billboards along the highways that run through the community. That will change, of course, if the measure passes, as the mayor predicts it will, and he expects West Side to be an attractive mailing address for such companies.

“We want to bring people downtown and have it be a spot where you can walk around, go to the theater, have dinner in a couple of different places … make a night of it. We have great commercial corridors on Memorial Avenue and Riverdale, but there’s no real place for people in town to go; to have a walkable downtown would be nice. It’s nice to see come that come to fruition after six years.”

Indeed, Reichelt said he no longer uses the phrase ‘crossroads of the region’ to describe his community, preferring ‘retail capital of Western Mass.,’ a nod to the many regional and national retail heavyweights — from Costco to Dick’s Sporting Goods to Home Depot — that have located stores in the community.

The traffic that drew those major retailers should also attract cannabis businesses and especially dispensaries, he added.

Reichelt noted that he believes that there is sufficient momentum to get the measure passed, and there may be more with the recent 3% increase in property taxes, the town’s first in several years. Indeed, he said the tax revenue generated from cannabis-related businesses and its potential to help prevent another such increase in rates may help incentivize the council.

“It’s four years later, and the landscape has really changed,” he said. “You hear a lot of the same legalization arguments that you heard back in 2016, but that argument was settled in 2016 — it’s legal in Massachusetts now. To think that it’s not in town is … not based in reality. There are signs on Riverdale and Westfield Street and Memorial Avenue pointing to the different places you can buy marijuana outside of town; look at the tax money that’s leaving here.”

While the July 18 date was one to circle, there’s another key date fast approaching — Sept. 16. That’s the kickoff to the Big E, which will take another big step this year to returning to normal — as in 2019 conditions.

The fair was canceled in 2020, and while it was staged in 2021, it did not have a full lineup of entertainment, said Eugene Cassidy, president and CEO of the Big E, adding that, for 2022, it will be all systems go.

Much of the entertainment has already been announced, he said, noting that Lynyrd Skynrd will close the fair this year. Meanwhile, there will be a number of new attractions and events — including an opportunity for fair attendees to communicate with those at the International Space Station — and even food items, including noodles, vegan offerings, and full-sized donuts.

Cassidy said advanced ticket sales are running well ahead of the pace for last year, which was a near-record year for the fair, and other strong years. “People don’t even know what what the fair is going to offer, but they’re already supporting it by buying tickets, sometimes nine months in advance of the event,” he told BusinessWest. “And that provides a great deal of emotional support for those of us who run the place because we know that our patrons care about the organization.”

But while projections are certainly good for this year, he will watch closely what happens at several other state and regional fairs set to open in the coming weeks.

Indeed, one wildcard could be gas prices, which, while they’re coming down, remain historically high and could deter some families from driving long distances for entertainment.

 

Bottom Line

Reflecting on why this city still calls itself a town, Reichelt recalled that the vote to change the charter and convert from town government to city government was close — as in very close.

“They decided when they wrote the town charter to maintain the ‘town’ name to maintain that town feel,” he said, adding that many people have approached him and said ‘Will, it doesn’t feel like a town anymore.’

Such sentiments lead him to believe that maybe, just maybe, by the time West Springfield turns 250, it will not only operate a city government, but call itself a city.

If so, that will be only one of many potentially significant changes that will take place between now and then in a community where there is always movement and the landscape is, well, a work in progress.

 

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

Community Spotlight

Community Spotlight

By Mark Morris

Karl Stinehart, left, and Russ Fox

Karl Stinehart, left, and Russ Fox say Southwick’s goal is preserve its high quality of life while also creating needed business tax revenue.

 

Southwick residents love the natural beauty and the many recreation choices their town offers but they also like reasonable tax rates.

Russell Fox, chair of the Southwick Select Board, said to accomplish both means business development must be part of the equation to ease the tax burden.

“It’s a balancing act that the Select Board takes very seriously,” said Fox, who has been a selectman off and on (mostly on) for more than 40 years. “I would not want to see families who have lived in town for generations say they can no longer afford to stay here.”

A balancing act indeed, as last year residents made it know that they will support some business development proposals, but not all. After the town’s planning board and select board had approved a $100 million project involving the online used car seller Carvana, residents expressed a number of concerns about the size of the project and its impact on the community.

The site where the Carvana project was proposed is a 90-acre parcel on College Highway near Tannery Road. After residents rejected Carvana, Karl Stinehart, chief administrative officer for Southwick said the owner of the property has since come up with a creative solution.

“The parcel will be broken into five lots,” Stinehart said. “We can now look to attract a retail store or a light manufacturer, something that won’t have the negative impact of a large facility.”

That’s the kind of progress that gets the attention of Eric Oulette, executive director of the Greater Westfield Chamber of Commerce.

“It’s a great idea for them to split up that parcel to make it more attractive for smaller businesses,” Oulette said. Currently, 13 Southwick businesses belong to the Greater Westfield Chamber.

Stinehart pointed to the town’s tax rate of $16.98 per thousand for both residential and businesses as another incentive for economic development in Southwick. Oulette agreed.

“Southwick’s tax rate is competitive and should help the town to attract more business there,” Oulette said.

Overall, there are many types of development happening in this recreational town, both commercial and residential.

“It’s a balancing act that the Select Board takes very seriously. would not want to see families who have lived in town for generations say they can no longer afford to stay here.”

That list includes Faded Flowers LLC, which has been cleared to build a cannabis-growing facility. Stinehart said town voters have approved this facility, which will grow and process cannabis for commercial distribution. At the same time, voters have rejected hosting any retail dispensaries in town.

“We are in the early stages of this project,” Stinehart said. “They have done some site work but have not yet built the facility. Once complete there will be a lag time before the business is productive, so we are a long way from seeing any revenue for the town.”

Meanwhile, the Greens of Southwick is a development of custom-built homes on the land that was formerly Southwick Country Club. Located on both sides of College Highway, the west side of the development features 25 lots, with only two still available. More recently work began on the east side of the property where 38 lots are planned. Phase one of the east side has only three lots available.

On the other side of town, a 100-unit condominium project near the intersection of Depot Street and Powder Mill Road has also been approved.

“When those are built, the people who live there will have close access to the Rail Trail and can easily walk to the center of town,” said Stinehart.

While all these new homes will create additional tax revenue, residents who live on Lake Congamond are begrudgingly contributing more to the town’s tax coffers due to improvements to their current homes.

For several years, many of the modest homes on the shores of the lake are getting major renovations by their owners. As a result, these lakefront residences are now assessed at a higher tax rate than before the reno work.

“People are very upset with us about their increased taxes and we tell them how the state sets the tax rate, we have nothing to do with it,” said Fox.

For this, the latest installment of its Community Spotlight series, BusinessWest takes an in-depth look at Southwick and the ongoing efforts to create that balance that Fox spoke of.

 

Work and Play

Calling the lake a tremendous asset to Southwick, Fox also noted that part of the American Rescue Plan Act (ARPA) funds the town received were used to install weir gates on Congamond.

“Weir gates help us address flood control and keep contaminated water from flowing into the lake,” Fox said. Every spring the town treats the lake with aluminum sulfate or “alum” to keep algae blooms down and improve water quality. Without the weir gates, contaminated water from flash floods would back up into the lake and negate the alum treatment. That affects the health of the lake, and the town budget, as Southwick spent $600,000 for the alum treatment.

Looking longer term, Fox said the town would like to dredge certain areas of the lake to keep it healthy.

“Lakes die naturally from sediment that keeps increasing over the years on the lakebed,” he explained. “Right now, there is an estimated six feet of sediment on the bottom of Lake Congamond.”

Because Congamond acts as a recharger for the aquifer, Fox is also hoping to start a dialogue with Westfield and West Springfield, as both communities get their water from the aquifer.

“It might be beneficial for all three towns to kick in to dredge the lake to make sure it keeps providing clean water,” he said.

Most of the $1.4 million Southwick received in its first allotment of ARPA funds was spent on a water project of a different sort, a new water pump and filtration station.

“This is a benefit to every water ratepayer and helps the town with improved water pressure,” said Fox.

Like nearly every town, Southwick has plenty of paving projects to tackle. Stinehart said town officials plan to use some of the ARPA money to fix roads in town but there’s a hitch. Budgets for road projects are set long before any paving happens.

“Because asphalt is petroleum-based, our paving projects now cost much more than we had planned,” Stinehart said. “The price inflation shortens the length of roads we can cover for that amount of money.”

As Southwick has an open-meeting form of government, big decisions are determined directly by residents.

“Everything we do must ultimately be approved by the voters at the Town Meeting,” said Fox. “I tell people all the time it’s the purest form of government.”

Stinehart explained several areas where voters have decided to make investments in their community.

“We continue to expand our paramedic EMS service which is run by the Fire Department,” he noted. “We’re adding more people so we can deliver that service at the highest level.”

Southwick is the lead community for a shared services grant to fund one full time and one part time nurse. In addition to Southwick, the nurses will cover Granville, Tolland, Blandford, Russell and Montgomery and serve in a visiting nurse-type of role. Stinehart explained that because of COVID, some people are still reluctant to go to medical facilities for routine treatment. With several towns taking part, the need for the service can be addressed at a more reasonable cost for everyone.

“It’s tough for one small community to budget for having a nurse on call, but with several towns paying it becomes more affordable for each town and it’s financially worthwhile for the nurse,” Stinehart said.

Southwick at a glance

Year Incorporated: 1770
Population: 9,502
Area: 31.7 square miles
County: Hampden
Residential Tax Rate: $17.59
Commercial Tax Rate: $17.59
Median Household Income: $52,296
Family Household Income: $64,456
Type of Government: Open Town Meeting; Select Board
Largest Employers: Big Y; Whalley Computer Associates; Southwick Regional School District
*Latest information available

When entering Southwick drivers are greeted with a welcome sign that brands the town as a “recreational community.” One notable recreation spot in town is The Wick 338, the motocross course that continues to grow in prominence in the sport. On July 9, the course will host the Southwick National Motocross Championship, which will be televised nationally on NBC.

“Based on ticket sales so far, the organizers are anticipating one of the largest events ever,” said Fox. “I hope they have good weather for it.”

The town also hosts two popular golf courses with The Ranch and Edgewood Country Club. Stinehart discussed a new golf game in town that has begun to take off: disc golf.

“The folks at the New England Disc Golf Center have told us people are playing hundreds of rounds of disc golf every week,” Stinehart said. “It’s a relatively new sport that’s gaining in popularity.”

Southwick is still basking in the glow of its 250th anniversary celebration. Though 2020 was the actual year of the anniversary, COVID forced the town to delay scheduled events and create new ones. In a “making lemonade out of lemons” kind of way, Fox remarked that they were able to celebrate the 250th for two years instead of just one.

“In 2020 we had a rolling parade where we drove floats into neighborhoods and then last year we held a traditional parade,” Stinehart said. “We’re still selling souvenirs from the event.”

 

Something to Celebrate

The anniversary celebration was so successful, the organizing committee had a surplus after all the costs were covered. That money will be used to make improvements to the town green and renovate the memorial to veterans who were Southwick residents.

“It’s a good use of the money and it will improve the municipal center of our community,” Stinehart said.

Reflecting on the anniversary, Fox said even with a two-year celebration, COVID prevented them from holding all the activities they would have liked to host.

At that point, Stinehart quipped, “Well, there will be a 275th anniversary.”

Opinion

Editorial

Area businesses already battling an intense workforce crisis received an additional dose of sobering news recently when MassINC released a report indicating that the Bay State could lose as much as 10% of its college-educated workforce by the end of the decade, a drop of roughly 129,000 people.

The projected decline stems from a number of factors, said the think tank, including a huge wave of retiring baby boomers, falling numbers of school-aged children in the state, and declining immigration. To sum it all up, there are fewer people going to college — certainly not enough to offset the number of boomers who are retiring — and fewer people coming into the state — from other countries and from other states, with the latter the result of the exploding cost of living in Massachusetts.

This confluence of factors leads to MassINC’s dire projections, which, if they come to be, will make an already narrow pipeline of qualified talent for jobs in a technology-focused region even smaller, threatening the health and vitality of many sectors.

There is not much anyone can do at this point about the birth rates that will lead to this projected talent drain, but there are some steps that can be taken to perhaps lessen the blow, starting with efforts to help more people attain a college degree.

This work starts with easing more people into college, especially through early-college programs in high schools, a step that the state Department of Elementary and Secondary Education has said is effective in increasing both college enrollment and completion rates, especially for low-income students and students of color.

Getting more people into and then through college is only part of the equation. As the cost of living in Massachusetts continues its upward movement, more college graduates will gravitate elsewhere. More housing, especially affordable housing, is one answer to this problem.

Indeed, a recent report on the state of U.S. housing released late last month by Harvard University’s Joint Center for Housing Studies reveals that, to afford a typical house in Greater Boston, one will need to earn more than $180,000. The numbers for this region are roughly half — $96,000 for Pittsfield, $83,500 for Greenfield, and $87,412 for Springfield.

With those statistics in mind, the need for high-speed rail becomes even more evident. They show the importance of enabling someone who wants to work in Boston, Cambridge, or Worcester to live in the 413.

The new report from MassINC is certainly sobering. As anyone in business can tell you, a college education is increasingly necessary to succeed in today’s high-tech economy. This state, and this region, needs more people with degrees, not 129,000 fewer of them.

The task at hand is to bring more people into college and then through it, and to then make it possible for more people with degrees to afford to live here. Nothing about this assignment is easy, but the stakes are high, and something needs to be done.

Opinion

Editorial

At the midway point in what has been a historically difficult year for consumers, calls are growing increasingly louder for tax relief in the Commonwealth, and especially gas-tax relief.

And it’s time those pleas were answered.

Indeed, at a time when the state is essentially swimming in cash — the rainy-day fund saw $2 billion in capital gains tax collections between Feb. 1 and May 31 — it only makes sense for the state to bring from relief to those who are being adversely impacted by record-high prices at the pump.

And that’s …. just about everyone, from families looking to take vacations to businesses of all sizes just trying to carry on day-day activities. Prices have gone up in almost every category of consumer goods and services, but the huge increase in gas prices touches just about everyone, and it is having a very real impact.

That not-so-magic number of $5 per gallon was passed recently in the Bay State — and just about every other state in the country. In fact, it’s already well above that figure, which represents more than a number. For many, it’s a threshold. When gas hits that mark, people start to cut back.

They cut back on travel — which means fewer visits to the businesses, and there are many of them in this part of the state, in the tourism and hospitality sector that were already reeling from two and half years of pandemic and were looking toward 2022 as a return to something approaching normal.

Or … people and businesses cut back on other things, because they simply can’t cut back on travel.

And when they cut back, an economy that is already on the edge when it comes to heading into a recession, may just tip in the wrong direction.

If times were different and the state was not flush with cash, we could almost see a reason for not moving forward with some gas-tax relief — almost. But not in these times. Not when the state is far from hurting fr revenue and when many other states have seen the wisdom of providing residents with some form of gas-tax relief.

Not at a time when many businesses are finally starting to make it almost all the way back from the depths of the pandemic and need help, not another punch to the stomach.

Not at a time when many businesses have been forced to pass along price increases to consumers because of rising cost of labor, raw materials, and just about everything else, and now they’re faced with passing on more because of the rising cost of gasoline.

We’re not sure what a tax-gas holiday would cost the state when it comes to its credit rating or overall revenues. But at this critical time for the business community and the economy as a whole, the cost of not putting some relief in place would certainly be much higher.

It’s time for state lawmakers to do the right thing and provide the Commonwealth with some much-needed help at the pump. v

Community Spotlight

Community Spotlight

By Mark Morris

Jaclyn Stevenson

Jaclyn Stevenson says Shakespeare & Company has extended its season into the shoulder months surrounding summer.

 

Jennifer Nacht describes the beginning of the summer season in Lenox as a light switch that clicks on to a time of “happy mayhem.”

Unofficially, the season begins after Memorial Day weekend, but Nacht, executive director of the Lenox Chamber of Commerce, noted that the weekends leading up to the holiday were plenty busy, as well. In fact, as early as January she first began to see a vibrant summer on the horizon for Lenox.

Back then, Nacht had begun planning the Lenox Art Walk event scheduled for this month. Her attempt to reserve hotel rooms for artists who planned to travel to the event was more difficult than anticipated.

“I was able to find only three rooms after calling several different hotels back in January,” Nacht said. “They were all so apologetic and said that because of weddings and other events, every place was booked full.” 

This difficulty with finding rooms is just one indication of what promises to be a sizzling summer for Lenox, which, because of its tourism-based economy, faced innumerable challenges during the past two summers of COVID, and is poised for a breakout year.

Indeed, ‘healthy’ and ‘robust’ are terms that Marybeth Mitts, chair of the Lenox Select Board, uses to describe tourism in her community as high season, the three months of summer, commence.

“We’re excited to welcome the first full season of Tanglewood since the summer of 2019,” Mitts said, adding that, with a full summer of Boston Symphony Orchestra performances as well as a Popular Artists series, Tanglewood’s economic impact on Lenox and the Berkshires is considerable.

As one small snapshot, Nacht pointed out that James Taylor’s annual shows on July 3 and 4 will bring more than 36,000 people to town over just those two days.

“We’re excited to welcome the first full season of Tanglewood since the summer of 2019.”

Shakespeare and Company is another Lenox-based arts institution projecting not just a solid summer, but a solid year.

Indeed the theater company has extended its season into the shoulder months surrounding summer. Jaclyn Stevenson, director of marketing and communications, said the longer season is experimental, and will incorporate performances both indoors and outdoors.

Last year when COVID numbers stubbornly stayed high enough to threaten Shakespeare and Company’s ability to stage indoor plays, plans for an outdoor theatre that was a “someday” project, moved on to the fast track.

“The Spruce Theatre was constructed in 90 days in the summer of 2021,” Stevenson said. Modeled after the amphitheaters of ancient Greece, the stage rests in front of several tall spruce trees that are incorporated into the design.

“When the idea for it was presented in the context of COVID, it was much easier for everyone to understand the vision Artistic Director Allyn Burrows had for the theater,” added Stevenson.

While the company already had its outdoor Roman Garden Theatre that seats 280, the Spruce Theatre is a 500-seat facility with room to stage larger productions. In fact, the opening play for the Spruce Theatre was a production of King Lear featuring actor Christopher Lloyd in the title role.

“Having Christopher Lloyd here to christen the stage was a real coup,” Stevenson remembered. “It was the kind of fanfare we would not have been able to create otherwise in a COVID world.”

For this, the latest installment of its Ciommunity Spotlight series, BusinessWest looks at how Lenox is well-positioned to further rebound from COVID and take full advantage of what is expected to be a big year for the tourism sector — and communities that rely on such businesses to fuel their economy.

 

Art and Soul

The Art Walk is a good example of an event that was created at the height of the pandemic after the town was forced to cancel its annual Apple Squeeze event. As an alternative to the town-wide festival, Nacht and others developed the Art Walk and scheduled it for the late-September weekend when Apple Squeeze would have taken place.

The first Art Walk consisted of 40 artists set up in different areas of town known as “artist villages.” These villages were arranged to accommodate only small groups of people with an emphasis on foot-traffic flow to keep everyone moving through the exhibits.

The event received great feedback and has quickly become a tradition in Lenox. Now in its third year, Art Walk features spring and fall editions. Meanwhile, the Apple Squeeze has returned, and will take place on Sept. 24.

Jennifer Nacht

Jennifer Nacht says the summer is looking very promising for Lenox and its many tourism-related businesses.

“It’s very validating to see these events that we put together on the fly are now becoming established,” said Nacht, noting that Lenox Loves Music is another event created during the pandemic that has had staying power.

In Lenox, music and entertainment are an important part of the town’s identity. When Tanglewood, Shakespeare and Company and the other entertainment venues shut down at the height of COVID, the chamber began working with the Berkshire Music School on a series of Sunday afternoon concerts, and Lenox Loves Music was born.

“The new events really help the merchants,” Nacht said. “Our real goal is to hold events that bring people to Lenox who will eat in our restaurants and explore our shops.”

Like the Art Walk, the popularity of Lenox Loves Music has made it a keeper, with concerts every Friday in June and September.

“We run all these events in the shoulder months of May and June then September and October,” Nacht said. “Once our high season hits, beginning the weekend of July 4, we’re packed with visitors so we don’t need to entice tourists because they are already here.”

Shakespeare and Company is another organization that has extended its season to the shoulder months. In years past, the company would stage three plays by the Bard and three contemporary works. With the expanded season, it is staging two Shakespeare plays along with five or six modern plays.

“The mission of our company is based on the work of Shakespeare,” Stevenson said. “We choose our plays thoughtfully to reflect the spirit of the Bard and to show people new things.”

In addition to staging plays, the company also has a robust actor-training program and a nationally recognized theatre-in-education program.

Stevenson noted that a high-school-age theater group had recently performed Romeo and Juliet on the Spruce Theatre stage.

“The new events really help the merchants. Our real goal is to hold events that bring people to Lenox who will eat in our restaurants and explore our shops.”

“It was so cool to see students on the same stage where actors from all over the world will be performing Much Ado About Nothing in July,” Stevenson said. “You could see the joy of them being in that space.”

 

Setting the Stage

To accommodate all the tourists visiting these attractions, and locals as well, Lenox has a number of projects in the works to refurbish some of its municipal buildings while plans are in the works to build several new structures for town departments.

Beginning with Town Hall, Mitts said improvements are underway to replace the carpet and curtains in the auditorium as well as install a new roof and gold leaf on the Town Hall cupola.

“The town has capital plans within the next five years to begin construction on a new wastewater treatment plant, and a new public safety structure to include the Lenox police and fire departments,” Mitts said.

In addition to roof and chimney repairs to the library, Mitts said a key project involves updating the HVAC system.

“We’re installing a new interstitial system to manage ventilation in the building,” Mitts said. “This is to ensure proper storage of the library’s collections including rare books and ephemera of the region.”

Meanwhile, a different kind of refurbishing project is taking place at Mass Audubon Society’s Pleasant Valley Wildlife Sanctuary, a popular destination for hikers at all levels. Last July a wind and rainstorm felled thousands of trees and severely damaged a boardwalk at Pike’s Pond. With $200, 000 of American Rescue Plan Act (ARPA) funds from the state and private donations, cleanup and renovations are in progress.

“Many of the trails and structures have been restored, however, there is on-going work to bring the facility back up to the full capacity it enjoyed in June 2021,” Mitts said.

As for the chamber of commerce, Nacht said that while the pandemic really challenged the agency in many different ways, it also presented an opportunity for the chamber to show what it could do to support efforts in town.

“People are now confident in the chamber and look to us for help with their events,” Nacht said offering the example of a proverbial ‘good problem to have’ at a recent farmers’ market.

“The farmers’ market brought so many people to town there weren’t enough lunch places for people,” Nacht said. The chamber arranged for a food truck run by someone who had worked in Lenox restaurants for 20 years. “He was excited to be back in Lenox and tells people he’s living his dream with his food truck.”

“It’s nice to feel that kind of energy coming back to Lenox,” she went on, adding that energy levels are expected to soar even higher during what is shaping up to be a very memorable summer.

Daily News

The most recent MassBenchmarks Board meeting showed a lapse in the economic recovery, as factors including the labor market, inflation, the Omicron variant, and the Ukraine conflict have fomented uncertainties. As a result, although Massachusetts continues to outperform the U.S. economy by most measures, there has been a notable slowdown in economic activity. 

In the first quarter of 2022, following six straight quarters of growth, both Massachusetts’ real gross state product and national real gross domestic product (GDP) saw reversals, declining by 1.0% and 1.4% percent at annual rates, respectively. This is a stark contrast to the last quarter of 2021 when annualized growth rates were 7.8% and 6.9%, respectively, according to the U.S. Bureau of Economic Analysis (BEA). 

In contrast to GDP, payroll employment in Massachusetts maintained its forward momentum and actually accelerated in the first quarter of 2022. Payroll employment, for example, increased at both the state and national levels, up 5.2% at an annual rate in Massachusetts in the first quarter, slightly higher than the 4.8% rate for the U.S. However, because Massachusetts experienced some of the most severe job losses and dramatic increases in unemployment rates in the nation during the early stages of the pandemic in 2020, employment remains 2.4% below peak (a deficit of 89,000 jobs). 

In contrast, the U.S. is now about 1.0% below its February 2020 jobs peak, according to the U.S. Bureau of Labor Statistics. The divergence of GDP and employment growth trends during the first quarter indicates a large decline in productivity — more people are working but output is decreasing. The productivity decline could be driven by the fact that low-wage sectors (with below-average productivity) are currently leading job growth, and/or by other factors such as supply constraints that are limiting production, and labor hoarding. The latter possibility is consistent with the historically low level of layoffs. 

 

In terms of GDP growth, Massachusetts and other states have followed national trends more closely than in previous business cycles, according to the board. This is likely due to both regional economies becoming more diversified over time as industries are less localized as well as the pandemic having a large economic impact on all states. For example, COVID-related stimulus spending is promoting greater convergence among the states in general — allowing most to ride the same wave towards fiscal recovery. As such, the national economic situation, including its endemic risks, have a great bearing on the Massachusetts economy. 

Innovation and Startups

Cooking Up Sustainability

By Kailey Houle

 

UMass Amherst Dining is serving up a new dish. Sort of. It’s called sustainability.

The dining program, long ranked among the best in the country, if not the best, is adding a focus on foods and their carbon footprint to what has been a steady diet of information provided to students about how to make smart choices about what to eat each day.

Ken Toong

Ken Toong says that by serving more plant-based dishes, UMass Dining is helping students on campus reduce their carbon footprint.

UMass Amherst Dining is teaming up with MyEmissions, a food carbon-label company, to bring a sustainability factor to the table, an initiative that could be considered part of a broader, campus-wide focus on carbon footprints — and how to reduce them.

Indeed, in April, UMass Amherst Chancellor Kumble Subbaswamy proposed a plan to be a net-carbon zero university by 2032. And a survey of UMass students conducted this spring shows 75% believing their food choices impact the environment, and 76% believing it is important to reduce their carbon footprint. But they didn’t know where to begin.

“We started incorporating kelp on the menu — talk about a superfood; it’s a carbon sink, meaning it puts carbon back into the atmosphere. We partnered with a group in Maine that works with off-season lobstermen to grow kelp, and it’s going really well. We’ve done research and development on it, and again, we’re educating students that not only is kelp a superfood for your health, but it’s also a climate superfood.”

Low-carbon dining — an experience UMass is striving to perfect — refers to making food choices that have low greenhouse gas emissions associated with their life cycle. Examples of low-carbon foods include nuts, soy products, local vegetables, and dairy alternatives; high- carbon foods include beef, lamb, cheese, chocolate, and coffee. To combat higher emissions UMass sources its high carbon foods locally, and all of the low-carbon foods offered are grown locally and, in some cases, on campus.

“My team and I researched the issue and we have partnered with MyEmissions,” said Kathy Wicks, director of Sustainability at UMass Amherst. “They analyze each recipe for its carbon footprint. So we export our recipe, they analyze it, and then they send it back to us so we can put it on the menu identifiers and on the app.”

Elaborating, Wicks said that such analysis involves giving a rating — A through E, with A being the highest, or best grade — to each individual recipe based on its carbon footprint. A carbon footprint, as it relates to food, is the amount of carbon emissions, methane, or carbon dioxide involved in the food’s production. It takes into account the life cycle of whatever one is measuring, its land use, processing, transportation, and packaging. UMass has been able to reduce some of its carbon emissions already by partnering with local farmers and facilities to feed their students.

MyEmissions has worked with European restaurants to help them reduce their carbon footprint, but UMass Amherst Dining is the first university program in the country to be introducing an initiative like this. And as an anchor institution in the region and a recognized leader and innovator among dining programs, UMass is looking to tell a story others will follow.

“Yeah it’s delightful that we did it first, but it’s a better feeling knowing we can help our students make a better choice,” said Ken Toong, executive director of Auxiliary Enterprises at UMass Amherst, which oversees the dining program. “Food matters and I think this is an important thing for the UMass community.”

Wicks agreed, and noted that through this new initiative, the university hopes to better inform students about foods and their impact on the planet and perhaps inspire them to consider options — like kelp.

“We started incorporating kelp on the menu — talk about a superfood; it’s a carbon sink, meaning it puts carbon back into the atmosphere,” she explained. “We partnered with a group in Maine that works with off-season lobstermen to grow kelp, and it’s going really well. We’ve done research and development on it, and again, we’re educating students that not only is kelp a superfood for your health, but it’s also a climate superfood.”

Overall, plant-forward dining, and that includes kelp, helps to reduce the overall carbon footprint. Low-carbon foods are able to be grown, prepared, sourced, processed, and transported in ways that emit minimal greenhouse gas into the atmosphere. Food production in the United States makes up 20% of overall greenhouse gasses and globally it’s about 30%. UMass Dining works with local fair-trade-certified farmers and rely on permaculture gardens to source their meals.

Kathy Wicks

Kathy Wicks says educating students on their food choices gives them the ability to take action to help the planet.

“We’ve been working with our local partners for a long time, we also work closely with companies around their practices and how they relate to sustainability,” Wicks said. “And this is a way we can help students practice everyday climate action with every food choice that they make.”

Wicks and others we spoke with stressed repeatedly that they are not trying to tell students what to eat. Rather, they are providing information that will help them make smart choices about what they might want to eat — information that goes beyond calories and ingredients and dives into a food’s overall impact on the planet

“We play a role in educating them on food literacy, but we also love to talk about food,” said Wicks. “We added this to the conversation because it is top of mind for so many people and the campus community as a whole.”

Carbon-use identifiers will be added to each menu, along with previous identifiers for allergies, ingredients, sustainability, plant-based, and locality.

“We have a very comprehensive menu system — we have identifiers for allergies, ingredients, and now they can assess it through the apps or on signs,” said Toong. “We just add it on the carbon calculator and put the rating on the menu.”

Toong said the Amherst campus is perhaps more diverse than ever, with many students, including those who are Asian, Latin, and Indian students seeking authentic cuisine that is mostly plant-based. More than 70% of the school’s menu items are already plant based, catering to vegetarians, vegans, and those with a more plant-driven diet.

“We’ve been working with our local partners for a long time, we also work closely with companies around their practices and how they relate to sustainability. And this is a way we can help students practice everyday climate action with every food choice that they make.”

“We know that plant-forward meals are going to be a trend; there is still meat, but smaller portions,” said Toong. “We only give three-to four-ounce red meat portions, and same thing with chicken. We’re selling more seafood and more plant-based dishes. This has really helped us make the decision to start the program.

“We’re not saying ‘don’t eat red meat,’ — we’re just suggesting smaller portion sizes,” he went on. “We don’t tell them what to eat — we provide them with information. But we want to promote more than just food, we want to promote culture and cuisine. Our goal is to work with students and the community to try to make the world a better place. We can do it by working together.”

Those we spoke with said the partnership with MyEmissions is merely another step in efforts to promote sustainability. They stressed the need to back up the information being provided with conversation about how to make smart choices.

“We’re not just going to put the information up there — we’re going to continue dialogue with our students about it and show them and give them tips that low-carbon dining is as easy as A, B, C,” said Wicks. “We’ve been dedicated to healthy, sustainable, delicious food for a long time. We always want to do more to enhance the student experience.

“We listen closely to what the students have to say,” she went on. “We listen closely to what they’re concerned about and what they are interested in and what their values are… the entire campus’ sustainability and the current issues with climate change are at the top of mind for everybody. So our expertise is food and customer service — that’s the area we want to do more. We know it has an impact on our environment.”

By making simple changes like trying out some new A-Rated dishes, anyone can help lower the carbon footprint — and those at UMass Dining know small changes like that can make a huge difference.

Innovation and Startups Special Coverage

Celebrating Innovation

By Julie Rivers

The University of Massachusetts Donahue Institute (UMDI) turned 50 in 2021. It was a milestone, like many, that was marked in quiet fashion, and in this case, very quiet, because of the pandemic.

The actual celebration, in the form of an anniversary gala, came this year — May 3, to be precise. More than 150 people attended the event at the UMass Club in Boston, a gathering that offered UMDI and its supporters the long-awaited chance to reconnect, meet new people, and celebrate.

And there was, and is, much to celebrate.

Indeed, charged with social service, economic development, and community engagement, the Donahue Institute interfaces with many aspects of life in Massachusetts and beyond. In fact, UMDI has received global recognition for its economic research, program-evaluation capabilities, and workforce and educational initiatives.

Anticipating almost $25 million in revenues for fiscal year 2022, UMDI has about 175 employees with staff across the country, including all six New England states, Southern California, and Arizona. UMDI operates like a consulting firm, with 98% of its revenues being self-generated.

At the gala, recently appointed Executive Director Johan Uvin offered what amounted to a state-of-UMDI address, and in a Zoom call with BusinessWest that involved several leaders of the institute, he did the same, highlighting what’s changed over the years and, perhaps more importantly, what hasn’t for this vital resource.

“As someone coming in from the outside, this is a solid model — it’s not broken,” he said of the institute’s method of operation. “The Donahue Institute has the autonomy and intellectual freedom to pursue work that is meaningful to society but that also aligns with its mission and capabilities.”

Over the years, that work, has come in a variety of forms, including everything from housing to the national Census; economic data and ways to measure it, to office automation. And the institute’s work has often to led to changes in how things are done and how issues are addressed.

Johan Uvin addresses attendees

Johan Uvin addresses attendees at the recent gala marking the Donahue Institute’s 50th anniversary.

Slicing through it all, Mark Melnik, director of UMDI’s Economic and Public Policy Group, used terms not often applied to such an agency.

“We’re a dynamic organization, especially for a public-service institute,” he told BusinessWest. “While entrepreneurial mode can be exhausting, it allows us to push corners.”

This unique blend of public service and entrepreneurship provides the institute to recognize and seize what he called “opportunities that just make sense.”

For this issue and its focus on innovation, BusinessWest looks at these opportunities while reviewing the institute’s first 50 years of work and asking UMDI’s leaders what will likely come next.

 

History Lessons

In the beginning, the Donahue Institute focused on providing consulting services to state and local governments. Named for former president of the Massachusetts State Senate, the late Maurice A. Donahue, UMDI branched out in the mid-1980s by helping clients in the corporate and nonprofit sectors.

According to J. Lynn Griesemer, who served with UMDI for 31 years, including several as president, and still acts as a senior advisor, a breakthrough assignment in the early days of the institute was to assess how to most effectively introduce office automation into workplaces. While automation is incontrovertible today, back in the paper-laden manual task days of 1970s office life, the project was just one of many groundbreaking concepts the institute would help launch.

Another early assignment that would shape the future of the institute involved improving floor operations at the General Motors assembly plant in Framingham. However, while the project was underway, the plant began laying off shifts — but UMDI was already there as an implant that was well-positioned to lend a hand. Shifting focus, the institute helped the newly dislocated workers create resumes, get additional education, and ultimately find jobs or even start businesses of their own. Through this fortuitous timing, the institute quickly became the largest services provider to dislocated workers in the Commonwealth.

Donahue Institute

From left, former director of the Donahue Institute Eric Heller, former deputy director John Klenakis, former director Lynn Griesemer, Director Johan Uvin, and Associate Director Carol Anne McGowan

The federal government’s Department of Defense would then present the institute with an opportunity to help make systems uniform across military branches. This project allowed UMDI to develop the national credibility to successfully bid on the Head Start program, one of its core initiatives to this day.

From there, former Massachusetts Governor William Weld asked the UMass President’s Office to assist with an economic development initiative for the state. With the help of economic experts from across the UMass campus, UMDI worked with the Federal Reserve Bank of Boston to forge the MassBenchmarks project. To this day, MassBenchmarks assesses the Massachusetts economy through reports and analyses that it then produces and releases twice per year in journal form.  

These early projects laid the groundwork for UMDI to get approved as a vendor by the federal government’s General Services Administration (GSA). This designation allows the institute to bypass the lengthy bidding process usually required to win large federal contracts. 

Indeed, the institute’s keen eye for evaluating opportunities and strategically selecting those that will open doors has built the solid foundation it now stands on.

Today, the Donahue Institute is comprised of 10 business units. However, despite the ever-growing diversification of its core capabilities, a vibrant and robust research component remains at the backbone. This includes both UMDI’s Applied Research and Program Evaluation unit and its Economic and Public Policy Research group, led by Melnik.

This group operates as a project-oriented consulting firm, much like a think tank, bringing academic expertise and methods to real-world social problems. The group works with demographic, labor market, and economic data to help state and municipal governments, planning agencies, and nonprofits guide broad public policy discussions.

“Housing is the most central public policy question when we talk about Massachusetts.”

One current project examines how to leverage new apprenticeship models to minimize employee retention challenges. Another potentially groundbreaking study involves using data gathered for COVID-related purposes to develop new and more affordable ways of providing healthcare services to consumers instead of funneling people into highly complex systems that they have to navigate on their own.

A core assignment for Melnik’s group is its work with the Secretary of the Commonwealth preparing for census enumeration, which is the basis for federal funding allocation and congressional seats. With help from UMDI’s population- estimates program, the state’s census data is head of class in the nation. This is especially noteworthy since census data is relied upon heavily for resource allocations and predicting where jobs will be. It also informs decisions around population projections used by the MassDOT and Mass. School Building Authority for school district planning.

The group’s portfolio also includes a two-phase initiative with Way Finders that uses Greater Springfield as a case study on housing market affordability. With a focus on upward mobility and wealth creation, the study seeks to answer what it’s like for low- to moderate-income families to live in a high-cost state.

“Wages are so much lower in the Pioneer Valley that more than 54% of renters are housing cost-burdened,” Melnik says. Additionally, the majority of those burdened are people of color.

“Housing is the most central public policy question when we talk about Massachusetts,” he explains. This is because it tells the story needed to inform public policy, including the future of transportation.  

Another of the institute’s long-term projects is the Head Start program, which it has been involved with since 2003.

UMDI’s New England Head Start Training and Technical Assistance group is co-directed by Rosario Dominguez, M.P.A. Dominguez says that when people think of the Head Start program, early childhood education is often the only thing that comes to mind. However, that barely scratches the surface of what the program does, as it begins at pregnancy and continues to support families through college.

With this long-term intervention approach, the program addresses intergenerational poverty by using what goes on in the classroom as a lens for examining how families can reach their financial goals, ultimately strengthening entire communities. Through the partnerships it forms, the program has the reach to solve issues much larger in scale than early childhood development, including informing policies that move social equity and upward mobility forward by helping education and social service organizations improve their systems.  

Beyond its regional and national footprints, Ken LeBlond, Marketing Communications manager, said UMDI also handles international work. Funded by the United States Department of State, the institute has contributed to economic mobility at the global level since 2004.

This includes its exchange program in which groups of 20-30 people from about 60 countries, such as Argentina, Pakistan, and Eastern Europe, come to Western Massachusetts each summer. The groups travel the region engaging in active learning, helping at the Amherst food bank and senior center, and working on river cleanup projects.

 

A Look Ahead

In August 2021, the Donahue Institute welcomed Uvin as its executive director. Uvin had previously served as assistant secretary of Education under the Obama Administration. Working alongside Associate Director Carol Anne McGowan, Uvin holds the distinction of being the institute’s first executive director to be hired externally.

When asked what is ahead for UMDI, Uvin talked about alternative models for providing health care and exploring different educational models in challenged communities to lift entire neighborhoods through training and interventions.

Additionally, Uvin is interested in looking at both the supply and demand sides of regional economies to shape how employers and individuals work together to create wealth.

He explained that the engagement process might begin with going into neighborhoods and asking, ‘what are your aspirations?’ This is important because, according to Uvin, “we are moving headlong into a labor shortage with the babyboomers retiring,” making it critical to have intentional conversations around economic development across many different populations.

While this may be a current focus for UMDI, these issues are not new to the Pioneer Valley, where economists and policymakers have been wrestling with similar challenges for decades. Uvin says that while high-tech industry sectors have grown across the state, it has not been an equitable geographic or demographic spread, with Gateway cities such as Springfield and Holyoke — where nearly half of the region’s minority population lives — being left behind.

Part of Uvin’s vision for the future is to explore work in sectors such as life sciences, which play a key role in the success of Central Massachusetts’ biotech manufacturing and Greater Boston’s R&D and lab-based growth.

This, he says, would involve lifting up underserved communities, which is critical because, on the business side, there are simply not enough workers to grow unless we find ways to include all populations. Representation of people of color in the best-paying jobs of the higher-tech sectors lags severely. In terms of where UMDI is at this point in contributing to solving inequities that plague underserved populations, he says they are in the discovery phase, talking to others on the grassroots level.     

As for the future, the institute is positioned to make great strides. With an executive director from the outside, a new perspective brought on by the COVID pandemic, and an impressive 50 years of success to build from, the institute is at a nexus for bringing widespread change to the communities it serves.

“It’s an exciting time for reflection and renewal — to articulate what has happened, organically anyway, through the COVID crisis, which is the discourse around social equity and social mobility,” said Melnik. “This has been part of our work for a while now and has bubbled up even more.”

In reflecting upon how the institute has evolved over the past fifty years, Uvin and others said it is also important to highlight what hasn’t changed, especially the institute’s model and entrepreneurial approach to its work.

Dominguez adds that what was once called public service has evolved into economic mobility and social equity.

“Although we are further defining what we do, our core values will always be the same,” she said. “How can our work impact communities in need? That’s the core — and that won’t change.” 

Uvin concludes, “we’re not done evolving. COVID revealed what didn’t make sense, and business must respond.” Offering employee support, childcare, mental-health services, and other perks will be integral.

Perhaps what will carry the Donahue Institute forward another 50 years will be that which has stayed the same — a solid culture, a public service-focused mission, and the keen ability to find opportunities that align with core values while also having the potential to open doors.