1st Quarter 2007
ECONOMIC & BUSINESS
Fast Ferry – City of Rochester officials stated that they were very close to having a deal for the high-speed ferry and that the ship could leave by the end of the week to get to another port before the St. Lawrence seaway closes on Dec. 29. (12/19) Mayor Duffy announced that Euroferries LTD. had resolved matters with its financier, clearing the hurdle for the $29.8 million sale of the ferry. City officials also confirmed a contingency plan to move the ship to the Port of Halifax, Nova Scotia, should the deal not close before the seaway. (12/21) Although the ferry project was one of the most anticipated projects in Rochester’s recent history, the venture ultimately drove one operator our of business and lost the city more than 10 million in 10 months last year. Euroferries has agreed to pay the city $100,000 for cost of moving the ship. (12/22) The ferry is in Halifax, where it will remain for a few weeks before leaving for its final destination. The city is anxious to sell vessel, as the taxpayers continue to pick up the tab. The city is expected to send a contingent of city officials to Europe in hopes of speeding up selling process. (12/27)
Paychex – An 18 percent increase in earnings accompanied the largest profit that Paychex Inc. has ever posted in a quarter at $132.7 million, or 35 cents a share, up from $112.6 million, or 30 cents a share, a year earlier. (12/21)
Local Jobs - Rochester adds 500 jobs between November 2005 and November 2006, therefore decreasing the number of unemployed people in this region. More hiring by small and medium size companies is one of the factors adding to the improvement. The education sector has also added 3,800 jobs over the past year. (12/22)
Housing Market - Rochester-area real estate market slows down, transforming into buyer’s market. For the past 4 months the number of closings has been down about 6 percent compared to 2005. Rochester housing market may see price edge up by 4.5 percent in 2007, making the area the seventh best for real estate. Prices have remained stable overall, rising in Penfield and Chili, falling in Mendon and Wayne counties, and staying flat in Brighton and Henrietta. (12/27) Home sales dropped 14.1 percent in December, the market is still favoring the buyers. The houses in good condition in the hot areas are still selling quickly. The market expected to pick up this year, especially since the mortgages rates have stayed low. (1/11)
Bonadio Expands – Rochester’s largest accounting and business consulting firm, The Bonadio Group, agrees to merge with Loguidece and Kamide. This deal adds 12 people to the firm based in Syracuse. Bonadio plans to expand to Albany soon, helping to manifest his vision of adding at least 400 people and an annual revenue of $50 million in about 7 years. (1/3)
Friendly Employers– Wegmans placed 3rd this year among the 100 best US companies to work for by Fortune Magazine. This is Wegmans fourth year making the list in the top 10, although this placing is down from #1 in 2005. Paychex places 70 among the 100 best US companies to work for per Fortune Magazine. Nixon Peabody ranked 49th. (1/9)
Kodak - Eastman Kodak decides to sell its $2.6 billion health group to Onex Healthcare Holdings Inc., based in Toronto. Onex agrees to keep Kodak’s health group and its 8,100 global employees. Onex will pay $2.35 billion to Kodak, with a chance of the price increasing by $200 million if specific stipulations are met by Kodak. Kodak plans to discuss how to apply $1 billion of the proceeds with investors. (1/11)
OFFICE
Henrietta – Rochester Home Builders Association Inc. begins construction on a 12,640 square foot office building project in March of 2006. The $1.19 million project includes four suites and conference area. Construction scheduled to be completed in January of 2007. (12/15)
RETAIL
Greece – The proposal for a Wal-Mart to go into Northgate Plaza on Dewey Avenue will remain on hold until the end of February or possible later. Plaza owner, The Widewaters Group, filed a lawsuit for an exception to a moratorium that the town imposed on new development in the area, and has now been granted an adjournment to the lawsuit. The moratorium is set to expire in April, but Widewaters is concerned that it might be extended. (12/20)
Downtown Rochester – City agrees to work with Italian Government to create Italian-themed shopping center. Mayor Duffy and Vice President Ferrari Pier Luigui have signed a nonbinding declaration to work together on the “destination shopping adventure” project, which includes 150 vendors selling Italian foods and merchandise. The center would be developed locally by Reidman Properties. The city has an option until February to buy it for $6 million. (12/28)
INDUSTRIAL
Greece – The first cellulosic ethanol plant in the United States will be built in Greece, funded by a $14.8 million state grant, and could position the region as a leader in a growing field. Mascoma Corp. will spend $29.8 million on the 15,000 square foot plant, and several others of its kind are planned for our area in the future. (12/21)
Caledonia- California based Cilion Corp. and Caledonia Commodity Resources Corp., two of the largest named in the ethanol business, are planning to build an $80 million corn ethanol plant in Livingston County town. The plant is also backed by investors including Virgin Atlantic airline and Sun Microsystems. Upon completion, the plant would produce as much as 60 million gallons of ethanol annually, employing up to 35 people. Cilion Corp. received 200 million in venture capital, the largest ever granted to an alternative energy company. The Caledonia plant would be the third ethanol plant proposed for the Rochester region this year. The plant is expected to generate more than $700,000 in new taxes, with 20 percent of its corn to come from local farmers. (12/22)
Livingston – CPAC Inc., a consumer and industrial products manufacturer based in Livingston County, announced plans to merge with Buckingham Capital Partners II LP for $42.8 million. CPAC will also assume $6.7 million in debt. Their shareholders will receive $8.65 million in cash for each share. Pending shareholders approval, the deal is expected to close first quarter of 2007. (12/27)
Rochester – Sealed Air Corp. $5 million expansion project. 33,000 square foot manufacturing facility addition. Project expected to be completed in April of 2007 (12/15)
Kodak Sells - Eastman Kodak Co. will list 328 acres and four buildings in Kodak Park South for sale. Closing those facilities will result in 485 layoffs and 65 million in restructuring costs. Kodak is working to reduce its manufacturing assets from $3 billion to $1billion due to the increased demand for digital imaging.(1/10)
RESIDENTIAL
Manchester – Rochester’s Cornerstone Group LTD. received 125 applications for 20 apartments in Shortsville Meadows that were built in 2005. Now they are looking to add another 24 apartments across the street on East Avenue. In order for the apartments to get sewer and water service, the 3.5 acres that is currently in Manchester, would have to be annexed into the village of Shortsville. If all goes according to current plans, construction would start in September with an opening goal of summer 2008. (12/15)
Churchville – Churchville Housing Group begins construction in May on senior housing complex. Construction includes 33 one-bedroom apartments in one 29,398 square foot, two story building. Construction costs $3.9 million. Completion of complex projected for February of 2007. (12/15)
Brockport – State of New York embarks on a $18.2 million construction project. Plans includes construction of eight two-story apartment buildings and one community building on 89,400 square feet of land. Start date scheduled for March 2006, with a completion date of June 2007. (12/15)
OTHER
Brighton – MCC Association Inc. plans to construct a three story, 115,000 square foot building to house 366 students on their Brighton campus. The project will cost $15.2 million. Construction scheduled to begin July 2006. Completion date expected to be August of 2007.
Henrietta – The Board of fire district commissioners in Henrietta approved building a new station, and will be seeking voter approval in February. The new station would help accommodate the 28 career fire fighters Henrietta has currently, as well as 10 more they expect to add in 2007. The construction would cost up to $2.5 million, and the board hopes to break ground in April (12/20)
Rochester - Entrepreneur, Scott Donaldson purchased
the Main Street Armory, a 138,000 square feet spread over seven floors
at a tax foreclosure for $1,000. In addition, he also purchased the
gas station across the street for $140,000, which is the remainder
of what he anticipated to pay for the Armory.
Donaldson will use the space to house The Raiders arena football team.
A three year lease has been signed with the Armory for $2,000 per
game. (12/29)
Rochester – $5.3 million construction and renovation project of the Ithaca College physical therapy facility. The 55,000 square foot facility will include new labs, a lecture hall and new lounges. Construction scheduled to begin in March of 2006.
Henrietta/Rush - Town plans to turn 72 acre parcel of land on the Genesee River into recreation space are under way. Plans to include 12 acres of land into baseball park, 2 playgrounds and picnic shelters. Final decision on design expected for early 2007. Rush would match a state grant for $100,000 and $43,000 from the recreation reserve would be used to cover the project’s bill of over $200,000. Rush intends on putting a 19 acre parcel, just off River Road, on the market in January. Park expected to be open in Spring 2007. (1/3) Deal sealed for new park in Henrietta. Town paid $175,000 for land. (1/8)
Webster – New fire station to be built on the northwest corner of the intersection of Route 250 and Woodhull. District officials are hoping to schedule a referendum in March or April to determine details of proposal. If approved, the station would be built on a 12 acre site in Webster. Neighbors are concerned about potential home value loss due to proximity of fire state. District consultant recommends news fire station to comply with insurance guidelines. (1/3)
Brighton – Town expects to close on purchase of 71 acres of land on Westfall Road. The land will expand Buckland park to 121 acres. Based on settlement, the town agreed to pay $2.9 million for land. Brighton will also work to renovate the Buckland farmhouse. Upon completion expected in 2007, the farmhouse will be used as a museum, meeting place and a place to do genealogical work. Lastly, the town received a $225,000 grant, in addition to $224,000 received from the city of Rochester to develop 6,500 feet of canal path along East Henrietta and Westfall roads. Developments expected to start in 2007. (1/3)
Darien Lake – Six Flags Darien Lake will sell seven parks to a PARC 7F- Operations Corp for $312 million. The deal expected to close in March 2007. Six Flags experienced attendance decline in 2006, leading to a 16 percent drop in third-quarter earnings. The sale is part of a strategy to reduce its $2.1 billion debt and improve financial flexibility. (1/12)
GENERAL
Honeoye Falls – In February MCC will offer courses at Honeoye Falls Lima school districts Middle School. This will be MCC’s fifth extension site. 16 evening courses will be offered at this location, which is a central location among Ontario, Livingston and Monroe counties. (12/26)
