1st Quarter 2001
What Comes First.Supply or Demand?
by Kevin L. Bruckner, MAI
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"What comes first.Supply or Demand?" In the growth markets of the United States throughout the South and West, demand is what drives supply. In fact in many growth markets, the supply of new residential dwelling units can not keep up with demand. But what about the Northeast and specifically Rochester?
As developers build more and more residential dwelling unts, it's the demand that tries to keep up with supply. Monroe County grew in population by only 3.0% or 21,375 between 1990 and 2000. At an average household size of 2.4, that's only 8,900 more households. The Rochester Home Builder's Association reports that between 1990 and 2000 there were 19,800 new residential dwelling units built in Monroe County, 10,900 more units than there were new households created. So where did the households come from to fill these additional units? The answer is simply intra-regional migration. As I drive down the main roads of Penfield, Webster, Greece and other towns, I see new subdivisions breaking ground everywhere. I see new apartment projects in Greece, Webster and Gates under construction. Several major new apartment projects proposed for Downtown. And the senior housing! New projects in Perinton, Penfield, Webster and Greece were just built or are under construction. I recently picked up the newspaper and read about yet another proposed senior housing development in Webster of 176 apartments, 68 cottages, 100 assisted living units and 120 skilled nursing beds. Where are all the people coming from? Where are all the OLD people coming from? Is there really demand for more senior housing at this time? |
The real reason for the new development is that we need more supply. You see down South and out West developers build because there's demand, here in Rochester developers build to stay in business. After all that's what a developer does, he builds and he builds and he builds some more. Yes, so far, most new subdivisions, apartment projects and senior housing projects are exhibiting high occupancies, but at what cost. Well, it's at the cost of the existing residential housing stock and older apartment units. Over time new units will and should continue to replace old - don't get me wrong I'm not against development, it also keeps me in business - but it's important to keep in mind that it's not demand that drives supply but supply that drives demand.
And now you know why it is so difficult to forecast the feasibility of any residential project in this market. The only way to test feasibility is to build it and hope for the best. By the way, the same theory applies to the tenant occupied office, retail, & industrial markets. "What comes first.it depends in which part of the country you're in!" |
ECONOMIC & BUSINESS
Xerox Corporation Employment-- Xerox Corp. cut 4,300 jobs worldwide in the first 90 days of 2001, 740 local employees left the company during that period - half through voluntary measures and the others through job cuts. At the end of March, employment in Monroe County was 12,600, down 1,550 from the beginning of last year. In Ontario County, Xerox employs 400, down from 525 in October 2000. The company has moved offices out of rental space and consolidated operation in its downtown tower. (4/20)
Eastman Kodak Company-- Eastman Kodak Co. reported first quarter sales were $2.975 billion, a decline of 4% from $3.095 billion in the first quarter of 2000. Net earnings were $150 million, or $.52 per share, compared with $289 million or $.93 per share in the first quarter of 2000. Earnings from operations were $262 million, compared with $456 million in the comparable 2000 quarter. The company announced it expects to take a restructuring charge of approximately $375 million to $450 million pre-tax, primarily in the second quarter, but with a portion to be taken in the third quarter. The charge is expected to include a reduction of about 3,000 to 3,500 jobs worldwide. (4/17)
Eastman Kodak Job Cuts-- Eastman Kodak Company announced it will cut 3,000 to 3,500 jobs worldwide this year, or about 4.5% of its workforce, in a move to get positioned for recovery. It's the company's third downsizing since 1997. The cuts, made up of layoffs, retirements and attrition, will help save $50 million this year. Kodak did not say how many jobs would be lost in Rochester. The company currently has a local work force of 24,000 people. (4/18)
Bausch & Lomb Inc.-- Bausch & Lomb reported operational revenues for the fourth quarter were $462.4 million down 1% from $466.6 million reported in the fourth quarter of 1999. Reported net earnings were $4.6 million, or $.09 per share, for the quarter compared to $17.2 million, or $.29 per share, in the same period last year. Full-year 2000 reported revenues from continuing businesses were $1,763.1 million, essentially flat with the $1,756.1 million reported in 1999. Comparable basis net earnings from continuing operations for the full year 2000 were $139.2 million, or $2.54 per share, compared to $132.6 million, or $2.26 per share, in1999. (1/25) Bausch & Lomb's announced its Pay-for-Performance Policy resulted in no earned bonuses in 2000 and no pay raises in 2001 for key executives. (3/23)
Home Properties-- Home Properties of New York Inc., the Rochester based apartment management company, has closed a deal to sell its Conifer Realty affordable housing arm for $16.1 million. Home Properties purchased Conifer in 1995 for $13.4 million. Under the terms of the sale, Home Properties will retain control of 8,225 apartment units that were developed under Conifer auspices, and the rental revenue that comes from those units. Conifer gets control of more than 30 developments in various stages of completion. Most of those properties are in New Jersey. (12/20) Home Properties reported full-year funds from operations of $120.9 million, or $2.94 a share, versus $89.1 million in 1999, or $2.78 a share. They reported fourth quarter earnings were $32.55 million, or 75 cents a share, a penny better than the same quarter in 1999. The company stated that the high cost of natural gas was largely to blame for the brake on earnings. The company's energy costs were up 34% in the quarter compared with the 1999 period. Home Properties includes heat in 70% of its leases and can't adjust rents quickly in response to fuel cost increases. Company officials announced plans to sell off $100 to $200 million worth of properties, about half of which are in Rochester, Buffalo and Syracuse. The company would use that money to buy back stock. (2/14)
Paychex Inc.-- Paychex Inc. announced record net income of $66.4 million, or $.18 diluted earnings per share, for the third quarter ended February 28, 2001, a 34% increase over net income of $49.6 million, or $.13 diluted earnings per share for the same period last year. Total revenue services were $229.3 million, an increase of 19% over $192.2 million for the third quarter last year. For the nine months ended February 28, 2001, net income increased 35% to $187.1 million, or $.50 diluted earnings per share, as compared to $138.4 million, or $.37 diluted earnings per share, for the same period last year. Total service revenues were $641.2 million, an increase of 21% over $530.9 million for the same period last year. Third quarter operating income for the Payroll segment increased 21% to $94.3 million from $77.7 million for the third quarter last year. Total payroll service revenues were $203.7 million, an increase of 19% over $171.8 million for the prior year period. For the nine months ended February 28, 2001, operating income for the Payroll segment increased 22% to $272.1 million from $222.4 million for the same period last year. Total payroll service revenues were $570.2 million, an increase of 19% over $477.6 million for the same period last year. (3/19)
Health Care-- Unity Health Systems reported a year end profit of $2.6 million up from the $62 million loss they reported in 1999. Unity's Park Ridge Hospital alone ended the year with $1.6 million in gains, after posting a $68 million loss for 1999. The system announced plans to build an outpatient cancer center at Park Ridge, where most of its in-patient hospital services are located. The center would be a collaboration involving Unity and competitor Strong Health, as well as Blue-Cross Blue-Shield of the Rochester Area's home health agency. Unity, which is the area's eighth-largest employer, with about 2,500 workers, moved most of St. Mary's Hospital's acute-care services to Park Ridge, cut $44 million from their $170 million budget and slashed more than 900 full-time jobs. (3/7) ViaHealth headquarters announced plans to close Genesee Hospital's 700,000± sq.ft. Alexander Street campus. For 2000, ViaHealth lost $21.7 million, with Genesee accounting for $18.5 million of the loss. Genesee can decide to close the hospital without state approval. The law requires a closure plan that ensures continuation of care until patients can be linked to other services. The hospital employs 2,250 people approximately 700 of which are nurses. Doctors with practices on the campus will have to move to Rochester General or to another area hospital. Staff members will likely be placed at Rochester General or other facilities within ViaHealth, but some may face layoffs. Severance packages may be offered. BlueCross pressed ViaHealth to close the hospital to lower ViaHealth's capacity and take pressure off premiums. Genesee Hospital handles approximately 30,000 emergency cases in the city annually. (3/29)
Economic Development-- The west side of the Inner Loop, from Plymouth Avenue west and Broad Street north has been stealthily undergoing a rebirth the last two years. A combination of factors, including price, public sector support and private sector recognition of the area's potential have triggered the revitalization. Three developments have been completed: The Cascade District-the area across the Inner Loop from Frontier Field, is a mix of office and residential space in what was once industrial property. The 130,000 sq.ft. Cascade Building has six tenants while 100,000 sq.ft. Knowlton Building has nine businesses, plus 13 of its 14 loft apartments have tenants. The Lofton Brothers spent more than $3 million renovating the property. The Broad Way Business District-just across West Main Street from Cascade was developed by Buckingham partners Harold Samloff and Larry Glazer. The renovations include the fully leased, 55,000 sq.ft. Washington Building, the Jonathan Child House on South Washington and a cluster of adjacent buildings. Buckingham has also purchased two properties on Main Street that it plans to renovate. High Falls-the area between State Street and the Genesee River. New work there includes the $6 million rebirth of the old 45,000 sq.ft. Canfield Tack Building and continued development of the 130,000 sq.ft. Rochester Button Factory. More than 500,000 sq.ft. of space is currently being revamped in High Falls and the west side of downtown. (12/17)
Area Population-- Results from the 2000 census show the county's population up 3%, or 21,375 residents, over the last decade. Monroe County had 735,343 residents as of April 1. The biggest growth areas in Monroe County were Clarkson, up 34.4%; Mendon, up 22.3%; and Webster, which grew by 19.5%. According to the 2000 U.S. Census figures, the only areas that lost people in the vicinity of southeastern Monroe County were the villages of Pittsford and Fairport. In Pittsford, the village population decreased 4.7% while the village of Fairport decreased 3.4%. (3/22)
Area Employment-- According to the state Labor Department, Rochester's unemployment rate for December fell to 3.7%, down from 3.8% in November and 4% in December 1999. 21,100 people were unemployed in the area in December. The Rochester area had 551,300 jobs in December versus 538,500 in the Buffalo metro area. New York state's unemployment rate was 4.5% in December, down from December 1999's 4.8%. The national unemployment rate for December was 4%. (1/19) According to state Labor Department, Rochester's jobless rate was 4% in March, down from 4.5% in February and 4.4% in March of 2000. The state's unemployment rate was also 4%, down from 4.3% in February. The statistics showed the state's full-and part-time private sector job count grew by 130,800 between February 2000 and last month, a 1.9% increase to 7.26 million. Overall, there are approximately 575,000 jobs in Monroe County. (3/23,4/20)
Area Home Sales-- According to the Greater Rochester Association of Realtors, for the year 2000, 11,542 single family homes were sold in the 11-county region, down 3.8% from the 12,003 sold in 1999. Home sales fell 9.3% in December compared with 1999. Sales in the city of Rochester were up 15.6 % for the year. The number of homes listed for sale in 2000 dropped 4.2%, to slightly more than 22,000. The dollar volume of sales dropped 1.2%, to $1.275 billion. (1/12) Home sales in the greater Rochester area were down 15.2% in February compared with the same month a year ago, according to the monthly statistics from the Greater Rochester Association of Realtors. Compared with January 2001, sales were down 39.2%. The number of houses listed for sale fell more than 11% from January, and listings are down more than 5% for the year. The dollar volume of area sales, at $142 million so far, is 8.4% ahead of 2000. The city of Rochester reported 215 houses sold, up 9.7% from the same time last year. (3/;8)
New Construction/Building Permits-- Construction of single-family houses in Monroe County dropped 9.6% last year. According to the Rochester Home Builders Association, overall housing construction fell only 3.5%, though, because town home development more than doubled. Countywide, municipalities issued 184 permits for town homes in 2000 vs. 84 in 1999. Town homes are defined as buildings with four units or less. According to statistics compiled by the Home Builders group and the Greater Rochester Association of Realtors, the number of single-family building permits issued in 2000 dropped by 160, from 1,675 to 1,515. Since 1998, single-family permits are down more than 40%. (1/20)
Area Exports-- The Greater Rochester Metro Chamber of Commerce found that 1,342 companies sold $14.8 billion in products and services outside the country in 2000, a 6% increase over the previous year. The leading destination for the exports: Canada, the United Kingdom, Germany, Mexico and Japan. The Chamber survey indicates small and midsize firms have become the focus of the area's exporting growth. Rochester's nine-county region has more than 4,000 exporting firms. Some 85% employ fewer than 200 people. (1/20, 3/9)
Airport Traffic-- Airport statistics for the Greater Rochester International Airport show 2,455,506 passengers used the airport last year, compared with 2,456,329 in 1999. The number of people who flew out of Rochester increased to 1,235,493 from 1,233,640 the previous year. JetBlue was fourth in market share behind the following major carriers and their affiliates: US Airways, United Airlines and American Airlines. (1/19)
OFFICE
Penfield-- Paychex, which plans to break ground next month on a $43.7 million addition to its headquarters located at 911 Panorama Trail South, received a $1 million grant from the Empire State Development Corp. to support the expansion. The expansion will create 900 local jobs over the next five years. Planning and zoning officials are still reviewing the site plan that calls for a six-story, 300,000 square-foot building with an elevated walkway to link it to two existing buildings. The addition would bring Paychex headquarters to 440,000 square feet in size. Paychex employs 6,680 people, including 1,565 locally. About 600 employees who work in leased space will move to the headquarters when the addition is completed. (3/22)
Perinton-- Advertising agency Dixon Schwabl plans to build an 18,000 square-foot building on four acres, at a cost of $2.6 million. The County of Monroe Industrial Development Agency board of directors approved a $289,000 package of tax breaks for the company. The company said it will create 34 jobs in three years in exchange for the break. (3/21)
Rochester-- The state Department of Health is moving into the historic Triangle Building, located at East Main Street and East Avenue by mid-April. The 10-year, DOH lease will fill the building to capacity. The building owners are pouring $1 million into renovating the top four floors, some 25,000 square feet of space, for the DOH. Triangle Building Associates LLC, a group of investors led by Flaum Management CEO David Flaum, own the Triangle Building. For the past 20 years the DOH has been located at 42 South Washington Street. (2/23)
Rochester-- Three Syracuse developers, 130 East Avenue LLC, have submitted a mixed-use proposal to the Cultural Center Commission to develop 130-160 East Avenue. The commission, which owns the 19,999 square-foot parcel, has approved the sale of the land. Plans call for 36 apartment units, street-level space for some five retailers and office space on the second and third floors. Construction of the proposed 91,000 square-foot facility could start as soon as September. The developers have secured approval for a loan from New York City-based Community Preservation Corp., a private mortgage lender specializing in financing low-to moderate-income housing. In addition, developers are seeking approval from the Monroe County Legislature and the Rochester City Council for a $1.5 million loan. The loan is based on city borrowing rates, which are generally lower than prime rates. (3/2,3/9)
Rochester-- The County of Monroe Industrial Development Agency's board approved the transfer of a sale/leaseback agreement for the Powers Building from PB Associates LP to SB Ashley Associates. The move could be a prelude to a sale of the building. The 210,000 square-foot, nine-story building at Main and State streets was Rochester's tallest when completed in 1871. (3/21)
Rochester-- Hunt Real Estate Corp., Buffalo's second-largest real estate company, will buy Judy Columbus Inc., Rochester's sixth-largest firm, for an undisclosed sum. The deal creates a brokerage with more than 530 agents and $760 million in sales. The acquisition is the latest in a series. ReMax Realty of Pittsford acquired Lowenguth Realty in January, and ReMax First bought ReMax Portfolio in November. (3/21)
Victor-- Developers Fred and Richard Rainaldi are proposing a three-tiered office park, high-tech park and retail area on 125 acres. The proposal would require the rezoning of the parcel from residential to a planned development district, which would allow mixed use of commercial, service and office businesses. Sixty percent of the land, which is bordered by Route 96, High Street, Valentine Road and Monroe County to the north, will be left as open space. Access for High Point Business Park would be through the southern entrance of Cobblestone Court off Route 96 and Valentown Road. Plans for the development call for 1c acres devoted to retail space, including the 1830's cobblestone house, known as the Bonsteel House, facing Route 96 on the west side of the property. Including the house, this area will contain 25,000 square feet of retail space. To the east, plans call for (4) three-story office buildings containing a total of 400,000 square feet. To the northeast, plans call for an additional 350,000 square feet of high-tech and other office space. Those buildings would be either two or three stories and designed to fit tenants' needs. If the board grants a zoning change, the Planning Board must then approve the project before construction could begin. (1/14, 1/20)
RETAIL
Henrietta-- HomePlace, the housewares superstore that open five years ago, is going out of business. The store is one of 38 that the company has decided to close; 84 will remain open. (1/31)
Henrietta-- Galyan's Trading Co., a 84,000 square-foot sporting goods store is under construction at the Marketplace Mall. The two-story building, located at the mall's southern entrance, between The Bon Ton and Sears, will features a 43-foot-high simulated rock-climbing wall. Shoppers can scale the wall and try out climbing gear. The store is scheduled to open in August. (2/14)
Henrietta-- Natural Wonders Inc. has put their 122,000 square-foot World of Science space on the market. Natural Wonders, who acquired World of Science last September for $5.45 million cash, has cut 90 local employees, some 60 staffers at the corporate office and warehouse at 900 Jefferson Road. The corporate offices were closed and the operations were moved to Louisville, Ky. (12/22)
Irondequoit-- Irondequoit Mall is struggling. The empty storefront count has reached 33. Excluding the anchor stores, Kaufmann's, J.C. Penney's, Sears and Bon-Ton, only 72% of the available square footage is occupied. That's 7% below where the occupancy rate was a year ago. The national average is 90%. (2/24)
Perinton-- The Planning Board will review plan modifications for a 28,300 square-foot addition to the Wegmans store at 6600 Pittsford-Palmyra Road. Plans include an 80-foot steeple clock tower and a drive-through pharmacy. If approved, Wegmans will go before the towns Zoning Board of Appeals to request a special-use permit for the drive-through and a variance for the height of the clock tower. The project would then go back before the Planning Board for final approval. (1/17) The Zoning Board of Appeals granted a variance to Wegmans Food Markets to permit construction of an 80-foot clock tower as part of a 28,000 square-foot expansion of its store at 6600 Pittsford-Palmyra Road. Conditions of the variance state that the only illumination be the internal lighting of the clock itself, that no objects be attached to it, and that the clock tower has no chimes or bells. (3/1)
Pittsford-- The Town Zoning Board of Appeals approved a special permit for Sammy Mina, owner of the Pomodoro Grill and Wine Bar on University Avenue to open another Pomodoro Grill in Pittsford Colony Plaza, 3400 Monroe Avenue. The 180-seat Mediterranean eatery, to be located in the site of the former Priceless Kids store, also was granted a variance for 100 outdoor seats. In addition, the restaurant will also have an adjoining pasta manufacturing business next door in the space formerly occupied by the Pittsford Fish Market. The permit was granted with a number of conditions, including one that requires the restaurant owners to reapply for another permit a year after they open. (12/27)
Pittsford-- The Kessler Group Inc. of Rochester wants to open a 90-seat Friendly's restaurant in the former Hunter's Pharmacy building at 1 N. Main Street. The building has been vacant for nearly a year. The Village Planning Board was unable to reach a decision. The chief point is whether there would be enough parking spots available in the village during the lunch hour. The building has no parking spaces assigned to it. The developers need a variance from the village to accommodate the 41 spaces required. Also, the historic significance of the building will make remodeling and renovations a challenge. (12/23,3/21)
Rochester-- Wal-Mart is building its first store within Rochester city limits. The retailer will open a 200,000 square-foot "superstore", the third largest in the state, by spring of 2002 in the former Two Guys and Hechinger's location at 1500 Hudson Avenue. The store, the third superstore proposed for the Rochester area, will employ 450 people and will cost $10 to $12 million to build. The tax impact from sales at the store and from property taxes could reach into the millions of dollars. Wal-Mart spends about $3 billion annually with more than 3,000 in-state suppliers. The chain is not receiving any tax abatements for the project. The super-centers comprise a discount department store, a supermarket and a car-care center. Wal-Mart is currently building a super-center at Westgate Plaza on Howard Road in Gates. Another is in the planning stages for Route 96 in Victor. Currently, the retailer has discount stores in Greece, Henrietta and Penfield. (12/19)
Rochester-- Wegmans Food Markets Inc. has purchased three parcels of land adjacent to its East Avenue store. The total price of the parcels, which include an employee parking lot on University Avenue that the grocery chain had previously been leasing and two retail/apartment buildings on East Avenue, was less than $1 million. Wegmans has no plans in the works to expand its 41,000 square-foot East Avenue store. The acquisition is part of the company's long-range strategy to control whatever is next to a store. (3/24)
Rochester-- Timothy Lisberg Jr. has opened Clinton Pharmacy Services at 821 N. Clinton Avenue. Clinton Pharmacy is the ninth store in a limited partnership that also owns five pharmacies in the Buffalo area and three in Michigan. In addition, Tommy Lin has opened Wang Chinese Takeout at 804 N. Clinton Avenue. The city worked closely with the North Clinton Business Association to get the two business owners to do business in an urban corridor. (1/30)
Victor-- McDonald's proposal to open a 3,960 square-foot restaurant and drive-through adjacent to a 159-year-old cobblestone home on the northeast corner of Route 96 and High Street received concern from the Planning Board. McDonald's must obtain approximately 18 area variances and a use variance from the Zoning Board of Appeals in order to open a commercial business in a residentially zoned area. (1/7, 1/13)
INDUSTRIAL
Chili-- St. Ives PLC, a London-based printing and publishing company has agreed to buy commercial printer Avanti Press Inc. and local subsidiary Case-Hoyt Corp. for $42million cash. Avanti/Case-Hoyt Corp. employs 380 people at 100 Beaver Road. The sale will not affect current employment. (1/30)
Gates-- General Motors Corp. has sold its former Delphi facility at 500 Lee Road to Maquire Family Properties of Rochester for $4.5 million. The 412,000 square-foot building, built in 1977, became available when Delphi decided to consolidate its area operations. (2/28)
Gates-- Continental Industrial Capital LLC, the California company that bought the 4 million square-foot Elmgrove complex from Kodak last year, has been approved for a $1.8 million tax break by the County of Monroe Industrial Development Agency. Continental plans to spend $30 million on renovations at the park. Under the terms of the deal, COMIDA becomes the owner of the renamed Rochester Technology Park, and Continental will lease it back from COMIDA over 10 years. The section owned and occupied by Heidelberg Digital LLC is not part of the current COMIDA deal. Future tenants of the Rochester Technology Park will still be able to request their own tax abatements from COMIDA. (2/21) Continental will present a master plan to the Town Board, which details the development of the 400-acre Rochester Technology Park in phases over a specific number of years. The owners are asking the town to rezone the entire site from general industrial to planned unit development (PUD). The plan will allow parcels of land to be sold off for office or industrial development. The proposal includes a number of amenities at the park, including a hotel, restaurant, shopping facilities and possibly a joint fire department/ambulance service. The hotel would be located near Elmgrove Road and Route 531. (1/11, 2/6)
Greece-- Corning Rochester Photonics Corp., a subsidiary of Corning Inc., is currently moving its R & D division form its location on Clay Road into a vacant building at Canal Ponds Business Park off Ridgeway Avenue. Rochester Photonics purchased a 50,000 square foot building from Illbruck Inc. of Minneapolis, Minn. for $3.25 million. (1/28)
Greece-- Performance Technologies, a Rochester based telecommunications company is planning to relocate its headquarters to Canal Ponds Business Park in order to expand. The telecommunications company, which is currently based at 315 Science Parkway in Rochester, plans to build a two-story 55,000 square-foot building that will house about 250 employees. The project is expected to cost about $5 million. The County of Monroe Industrial Development Agency approved more than $500,000 in tax breaks. The company will receive relief from sales and mortgage taxes. In addition to housing the company's corporate headquarters, the building will also house its manufacturing division, which is in Raleigh, NC. The move will generate approximately $1.3 million into the local economy over the next 10 years. (1/25)
Henrietta-- Corning Inc. purchased 17 acres of land to the north of its Monroe Park Photonics plant. The purchase price was not disclosed. Officials at the plant said there are no concrete plans for the additional land. (1/26)
Henrietta-- Konar Properties has begun the initial phases of building Erie Station Business Park and village, a development of large warehouses and business buildings, as well as residential properties. Overall, 185 acres of the land are industrially zoned for office, warehouse and industrial use and about 80 acres are zoned residential for approximately 350 townhouse and apartments units. Work has been completed on Erie Station Road, curving and adjoining it to Thruway Park Drive to alleviate traffic at the intersection of West Henrietta and Erie Station roads. (12/20)
Rochester-- Monroe Community College announced plans to build a $60 million, four-story training center downtown that will specialize in technical instruction for software, telecommunications, optics and biotechnology. The center would train 3,000 to 4,000 students a year. A site has not been selected. Some funding would come from the State University of New York, the rest from local government and other sources. The program would be a collaboration with local businesses. (3/23)
Rochester-- Delphi Automotive Systems Corp. is cutting 11,500 jobs, or 5% of its work force. Under the massive restructuring plan, Delphi will sell, close or consolidate nine plants and cut staffing at more than 40 other sites. The company's plant on Lexington Avenue and engineering center in Henrietta will remain open. But 180 hourly workers at the city facility will be offered separation packages. (3/30)
Rochester-- Valeo S.A. laid off 65 workers at its Lyell Avenue plant. Including these layoffs, 174 union workers have been laid off since November because of the slow down in the auto industry. An eight-year contract guarantees laid off workers 95% of their net pay and protects them from being laid off for more than 96 weeks over the length of the contract. Some salaried workers have been laid off but the company has not disclosed how many. (1/20)
Webster-- Xerox will accelerate its cost-cutting initiatives by cutting 25% to 35% of its unionized work force at the Basket Road plant, part of the 2,000 area layoffs previously announced. The labor contract covering union workers provides that anyone cut from the work force is eligible to be re-called to their jobs within two years. (1/30)
RESIDENTIAL
Brighton-- NewMark Development Inc., the developer of the proposed Mercy Park housing project behind Our Lady of Mercy High School has scaled back his proposal. NewMark will reduce the number of apartment buildings from two to one and increase the amount of green space. The revised plan calls for 11 single-family homes, 30 townhomes, and one apartment building with 203 units. Eliminating an additional apartment building means that 78% of the parcel will reserved for green space. The project is critical to the Sisters of Mercy, who agreed to sell 32 acres to NewMark six years ago as a way of raising money for their ministries. The sale, which would bring $750,000 to the sisters, can't go through until Brighton approves the project. (2/19)
Canandaigua-- The city has filed a lawsuit against the town over the proposed Old Brookside housing development on the town-city border. The suit calls for a halt to decisions and actions of the town Planning Board in connection with the proposed 152.2-acre subdivision. The project's environmental impact on the city is debate. The city has some say in the project, as the subdivision's proposed 177 single-family homes, about 50 senior apartments, and 168 other apartments would be hooked up to city sewer and water services. (3/23)
Chili-- Mark IV Construction Co. is seeking a zoning change from neighborhood business to multiple residential on a 27-acre site southwest of the intersection of Union Street and Chili Avenue. The developer has submitted preliminary plans for The Parklands at Chili, a 256 multiple-unit housing development. Preliminary plans call for 64 one-bedroom and 128 two-bedroom rental units, with an additional 64 senior-citizen rental units. The private-entrance units would have no common hallways. Rents would range from $800 to $950 for the one- and two-bedroom apartments. Senior rental rates for units including housekeeping and food preparation will range from $1,300 to $2,300,depending on level of service provided. The complex would have more than 400 parking spaces. A dedicated road is planned to run through the complex and connect entrance/exits on Union Street and Chili Avenue. (2/8)
Chili-- The Planning Board has approved the proposal to construct the 61-unit Union Square Senior Apartment Center on 4.9 acres of vacant land between Attridge Road and Union Street. The plan to create the senior citizen housing unit was submitted by the Providence Housing Development Corp. Since 1996, The Planning Board has required that construction of a road connecting Union Street with Union Square Boulevard be completed prior to the site being further developed. Rochester's Cornerstone Group Ltd., which is working with Providence to develop the senior apartments, asked the Planning Board to revise its 1996 requirement. In addition to building a road connecting Union Street and Union Square Boulevard, the state Department of Transportation is requiring that the Cornerstone Group make sewer and traffic lane improvements to a 1,850-foot section of Union Street. The Cornerstone Group stated the road construction may not happen until a state project to upgrade the Union Street/Buffalo Road intersection commences in 2003 or 2004. Although the 61-unit building far exceeds zoning density laws the Planning Board granted final approval to the plan. Providence Housing Development, which is affiliated with Catholic Charities, will seek a variance from the Zoning Board. (2/16)
Dansville-- Conifer Realty LLC, a Rochester based developer, has proposed spending $8 million to convert the 122-room brick building known as McFadden Castle into an assisted living facility for the elderly. The mansion has been vacant since 1972 and eventually was taken over by the county because of unpaid taxes. Conifer wants to purchase the 41-acre estate and use low-interest loans from the state, along with state and federal tax credits, to lure investors into renovating the building. The proposal depends on approval from the New York state Division of Housing and Community Development. The proposed housing complex would have 53 apartments for people age 55 and older with varied incomes. Rents would range from $360 to $850. Medical attention and meals would be available. (1/15)
Farmington-- The Oakwood Company, the developer of the stalled Fairdale Glens Apartment complex has lost the project site land to foreclosure and has been sued by Geneva Housing Authority. Nearly 45 acres off Route 96 near Hook Road will be sold at public auction next month. A judgment of foreclosure against Oakwood for failure to pay a $325,000 mortgage was handed down in state Supreme Court. Geneva Housing Authority has also filed suit to recoup nearly $93,200 in attorney fees it incurred on the project. According to town records, the assessed value of the vacant land is $139,600. All taxes on the land are paid. The developer proposed a 104-unit apartment complex for low-to moderate-income families. Plans for Fairdale Glens Apartments received Planning Board approval with more than 200 conditions, but the financing was rejected by the Town Board. (2/9)
Greece-- Sortino Builders is proposing to build up to 90 homes on about 30 acres of land at the southeast corner of North Avenue and Maiden Lane. The builder is requesting that the town rezone the 30-acre parcel from Single-Family 2 to Single-Family 3, a move that would allow the developer to build 12 more houses at the site. If approved, the total number of houses could increase from 78 to 90. The houses would range from 1,200 to 1,400 square feet and cost between $135,000 to $200,000. (1/28) The Town Board approved a zoning change for 30 acres at the southeast corner of Maiden Lane and North Avenue from Single-Family 2 to Single-Family 3. The rezoning will allow the developer, Sortino Builders, to build 90 houses at the site. (3/1)
Henrietta-- Forest Creek Equity Corp. has withdrawn their plans to build 40 single-family homes near Karen Lee Drive. The developer cited fierce opposition from neighbors regarding green space and environmental issues as the reason for his withdrawal. Forest Creek had offered to pay the town $200,000 for the 25-acre parcel. The town wanted to sell the land to help offset the cost of the $2.6 million public works building under construction next to the Town Hall on Calkins Road. (2/6)
Irondequoit-- NewMark Development Co. Inc. wants to build a 96-unit senior citizen housing complex on a residential section of Norton Street. The two-story building would be at 2662,2670,2700 Norton Street, between Densmore and Helendale roads, and would require tearing down at least one home. Details about the complex, in terms of what kinds of services would be offered, are unknown. Preliminary site plans have not been submitted yet. After Planning Board review the Town Board must consider changing the land's zoning from Single-Family Residential to Multi-Family Residential. (1/9)
Ogden-- Developer Gary Inzana received Town Board rezoning approval for his proposed 20-apartment senior citizen complex at Union Street (Route 259)and Ogden-Parma Town Line Road. The Board rezoned the four-acre parcel from residential to senior citizens housing. The number of units was reduced from 24 in three, single-story buildings to 20 in two buildings. The entrance was moved to Union Street from Ogden-Parma Townline Road near the Taylor Elementary School entrance. A larger area has been designated for the storage of drainage water. (3/2)
Rochester-- The city is planning to build up to 45 homes through this year's Home Expo program. About 28 homes a year have been constructed through the program. Home Expo is target at moderate-to middle-income home buyers. The program provides grants of up to $20,000 to reduce the cost of a home. Prices range from $66,000 to $76,000. Some buyers qualify for an additional $6,000 for down payments and closing costs. Each home buyer will be responsible for a minimum personal investment of $2,000. A buyer must live in the home for at least 10 years or pay at least a portion of the grant back to the city. Last year, the city built 22 homes in one subdivision, Anthony Square off West Main Street. This year, prospective buyers will be able to choose from 287 lots scattered across the city. Eight models will be built on Troup Street across from Anthony Square. Construction will start in the spring. The $960,000 program is funded with a combination of city, state and federal funding. The city received a $500,000 grant from the state Affordable Housing Corp. City Council is scheduled to approve the sale of land and agreements with developers in the program. (2/12)
Rochester-- Developer Peter Willard plans to convert the seven-story, 70,000 sq.ft. Artcraft Building, located at 89 Allen Street, into loft apartments. The project is a joint effort between Artcraft Optical and the developer. Artcraft Optical Corp. plans to relocate its operations. The Artcraft Building, which dates to 1905, could be ready for occupancy next fall. The exact layout and prices of the market-rate rentals are yet to be determined. (12/17)
Victor-- Pride Mark Homes wants to build a 37-home subdivision on 112 acres, south of Boughton Hill Road and east of Brace Road. Homes at the proposed development, called Stonebridge, would sell for between $250,000 and $450,000 and would be built on lots of a minimum of three-quarters of an acre, and as large as 1 c acres. Victor requires new housing subdivision to have at least 50% green space. (3/8)
OTHER
Brighton-- Our Lady of Mercy Church at 36 Armstrong Road received site plan approval for a 1,930 square-foot addition to the current church. The addition will house a daily Mass chapel and make room for about 200 more church members. In addition, church officials plan to install restrooms, a storage area, new heating and cooling systems and new carpeting in the building. (3/15)
Canandaigua-- The Board of Supervisors has approved the site for the new Ontario County jail. The 276-bed facility will be built on the south side of the county complex off County Road 46 in Hopewell. Costs are estimated at $28.5 million plus interest on bonds. (12/22)
Canandaigua-- Work is on schedule at the new $17 million Roseland Waterpark off Routes 5 and 20. Work commenced at the 58-acre site in September 2000. Roseland will open May 25 as planned for a 96-day season. Admission to the family-oriented park is expected to run $20 each. The city has agreed to pay for an estimated $400,000 in infrastructure, such as roads for access to the park. (3/21)
Greece-- Lakeshore Community Church recently acquired a 36-acre parcel on Latta Road, between North Greece and Manitou roads, to build a church for its parishioners. The church, which currently rents space at Apollo Middle School for its Sunday services, is planning to build an approximately 20,000 square-foot facility at the site. Construction is scheduled to begin in spring 2003. The church purchased the 36 acres for $250,000. (3/15)
Henrietta-- Paychex Inc. founder B. Thomas Golisano has pledged $14 million to Rochester Institute of Technology for the creation of a new College of Computing and Information Sciences that will be named after the businessman. It would become RIT's eighth college. A new 90,000 square-foot building would house the new college. The college would focus on software engineering, computer science and information technology. About 1.6 million new jobs are expected to be filled in 2001 and another 3 million new jobs are expected to be created in the next five years in those computer-related fields. Enrollment at RIT's information technology field alone has jumped from 13 in 1992 to 1,500 today. RIT is also looking at constructing new apartments and dormitories, as well as a field house and technology laboratories. (2/14)
Irondequoit-- Construction on a Holiday Inn Express and an International House of Pancakes on North Goodman Street will start this spring. The Irondequoit Mall is giving up a portion of its parking lot for the restaurant and hotel. The town Planning Board has already given the project final approval. (1/14)
Macedon-- Waste Management of New York is seeking approval to expand its High Acres landfill in Perinton over the border into Macedon. Waste Management owns almost 300 acres in Macedon adjacent to a closed portion of the High Acres landfill in Perinton. High Acres has already applied for a special-use permit for 12 acres on Wayneport Road to open a yard waste, composting, wood waste and recycling center. The land for that project would have to be rezoned as well. (1/18)
Pittsford-- The Sisters of St. Joseph are seeking approval to build a new mother house on French Road. Nazareth College will be taking over their mother house on East Avenue as part of its campus-expansion project. The mother house will become part of the campus by early 2003. The Sisters are proposing a 100,000 square-foot, 150-bed facility, with a chapel and community rooms, on 59 acres of land bordering the college. The new mother house would be home to the congregation's members and priests who live at the East Avenue facility. Of the 150 beds, 70 beds would be for independent living and the rest would include assisted or skilled nursing care. The town needs to review the application because its an incentive-zoning proposal. The parcel is in a residential area that doesn't allow for an adult-care facility. The incentive-zoning proposal would involve the Sisters building on 36 acres of the land. The remaining 23 acres would be open space dedicated to a regional storm water detention facility that would serve the mother house, Nazareth College, Oak Hill Country Club, and Irondequoit Country Club. After being reviewed by the planning board, the application will come back to the Town Board for a public hearing. (1/24)
Rochester-- The Rochester-Genesee Regional Transportation Authority board approved a contract naming LeChase Construction Services LLC as construction consultant for the proposed downtown transit center. Preliminary plans call for buildings to be razed on the north side of East Avenue from North Clinton Avenue west to roughly the middle of the downtown block. In their place, new office and retail space and an elaborate transit center would be built. The project also calls for half of the city-owned Mortimer Street ramp garage to come down. The garage would make way for a below-street-level bus-parking area and an extension of Stone Street northward to create a pedestrian walkway or linear park. LeChase was hired on an hourly basis to do preliminary investigations of the site. (2/16)
Rochester-- Strong Museum, is proposing a $26 million expansion project that would increase the size by about 70% to 278,000 square feet, making it the second-largest museum of its kind in the country. Strong Museum would pay $17 million toward the project from its own investment fund. The expansion would provide space for a number of new interactive exhibits and would include a larger theater, twice as many parking spaces and an atrium facing Manhattan Square Park. Museum officials plan to seek $4.5 million from New York State, joining a long list of major Rochester construction projects in pursuit of state funding. The family and children's museum opened in 1982. (2/9)
Rochester-- The State University College at Brockport is purchasing the property at 55 St. Paul St. The building, home to the Greater Rochester Metro Chamber of Commerce, would give SUNY Brockport more space for its MetroCenter Campus. All classes are held now in the Sibley Building on East Main Street. (3/30)
GENERAL
Henrietta-- Town officials are considering a one-year moratorium on any commercial or industrial projects north of the New York State Thruway that require a zoning change. The proposal specifically protects residential property. Projects slated for land already zoned for commercial or industrial use would not be affected. (2/21) The Town Board has expanded the resolution for lands currently zoned residential to the entire town. The moratorium will provide the town a chance to study its infrastructure, including roadways, utility lines and other features to see if they can handle more development. If improvements or upgrades are recommended, then those costs are expected to be handed off to developers. (3/14)
Irondequoit-- The town has applied for a $258,000 grant to purchase the Shaw property, four parcels of densely wooded, sloping land just west of the Culver Road and Titus Avenue intersection between Titus and Durand-Eastman Park. It would be the first time the town purchased property to keep as green space. (1/24)
Livonia-- The town and village received a $20,000 federal grant to study construction of a 3.2-mile road from Route 15 to Route 20A in the village. The project is estimated at $8 million. The road, called Gateway Park Road, would spark economic development and alleviate congestion on Route 20A. (2/13)
Rochester-- According to CB Richard Ellis' first Rochester Market Index, flex space is the fastest growing type of commercial space in Rochester. Flex space refers to high-ceilinged, open structures that are designed to let a business finish the space for office, manufacturing or distribution use, depending on its needs. Available flex space grew by 340,000 square feet, to a total of more than 2.5 million square feet. The flex space total is a fraction of the overall square footage in the region devoted to commercial uses. Industrial space alone accounts for more than 100 million square feet in the Rochester area. (3/7)
Rochester-- The Rochester Rotary Club has signed an option with a developer for 0.68 acres it owns south of West Main Street between Washington and Plymouth. According to Rotary Executive Director, Bob Enright, the developer is conducting a feasibility study on the land to determine what might be built there. (12/17)
