Trumansburg's Barangus closes

Joan Baez at Barangus, 2009

Barangus, the Trumansburg landmark known for its black bull on the roof, has closed after 50 years.  

We hear that many T-burg locals are concerned by a recent rash of business closings.  We are also told that many of those same folks proudly display "Obama 2012" bumper stickers.  Coincidence?

Having a flashback?

Do our eyes deceive us?

We acquired this convenient thirty-pack of refreshing Genesee Cream Ale, not in 1978, but earlier today!  Either our local retailer was not rotating his stock in a timely manner, or Upstate's leading brewery had rolled out a very retro look.  It turns out our purchase is indeed fresh.

According to Janine Schoos, brand manager for the Genesee Family of Beers, Genesee Cream Ale is experiencing a resurgence. The beer is taking off in cities like Brooklyn, Atlanta and Seattle. Better availability, along with growing interest in beers with heritage, have helped Genesee Cream Ale gain relevance among consumers.

The new packaging mirrors a move made last year with Genesee Beer. “The response to Genesee Beer’s vintage packaging, along with the release of a collection of heritage beers, has been overwhelmingly positive,” said Schoos. “We’re getting back to our roots and reintroducing the packaging that people knew and loved. And beer drinkers are responding – Genesee is rapidly growing.

Much as we admired GCA's gorgeous "new" logo, we always loved the simplicity of the former, and now current, look.  And we can't help but be pleased to learn that the swells in Brooklyn, Atlanta and Seattle are catching up with us.

Back to the future

Happily, some clarity from DiNapoli

New York State's top financial officer, Tom DiNapoli, got involved in politics in 1972, when he was elected to the Mineola Board of Education at age 18.  While he's as much a standard issue New York liberal Democrat as the next guy, we can assume that Tom likes his job and doesn't want to be held responsible for the Empire State's bankruptcy, or a potential Federal takeover leading the the dissolution of what was once the world's beacon of freedom and opportunity.  So it's no surprise that Tom might actually look into some of our rulers' more wasteful spending.

More tax breaks does not equal more jobs.

That's according to State Comptroller Thomas DiNapoli's latest report on New York's industrial development agencies (IDAs).

In his fifth report on IDAs [PDF], DiNapoli says the number of jobs created by the local economic development engines dropped by 22,000 from the year before.

DiNapoli also cites a $483 million gap in what IDAs gave out in tax breaks and how much they took in via payments-in-lieu-of-taxes (PILOTs).

That breaks down, the report finds, to a $2,659 cost per job - up 9 percent from the year before.

"Taxpayers are not getting enough bang for their buck when it comes to IDAs," DiNapoli said in a statement.

Tom may be on to something, if Seneca County's IDA is any indication.  Rather than bringing the county a Toyota assembly plant or an Apple Computer research facility, the IDA seems to just be making work for itself.

The owner and operator of a proposed new McDonald’s Restaurant at 2500 Mound Road will likely receive financial assistance from the Seneca County Industrial Development Agency.

James Coriale, president of Jascor Inc., the owner-operator of the existing McDonald’s on Mound Road, has received town approval to demolish the existing building and construct a new restaurant on the same site.

It appears that struggling Finger Lakes taxpayers are once again being forced to subsidize a profitable business that, absent the generosity of the Seneca County IDA, most likely could have updated its facility without taxpayer cash.  Beneficiary James Coriale, a successful businessman, actually owns six McDonalds' restaurants.

"We look forward to a welcoming everyone to our grand re-opening later this year," said Coriale. Jim Coriale owns six McDonald’s Restaurants, with locations in Penn Yan and Ovid, in addition to McDonald's in Walmart locations in Camillus, Horseheads, & Watkins Glen.

We enjoy Mr. Coriale's restaurants and we congratulate him on building a successful business in one of the most anti-business climates in the US.  We just don't have any extra cash to invest right now, and it seems Tom DiNapoli may be starting to figure that out.

AES power plants in bankruptcy

AES Cayuga

AES Corp., owner of the recently re-started Finger Lakes power plant formerly know as Milliken Station, has filed for bankruptcy.  The company blames the ongoing economic depression.

AES Corp. (AES) units that either own or lease six coal-fired power plants in New York state sought bankruptcy court protection, citing the depressed economic environment for the electric power industry.

AES Eastern Energy LP and 13 other AES affiliates listed as much as $1 billion in debt in Chapter 11 filings yesterday in U.S. Bankruptcy Court in Delaware. AES Eastern listed $100 million to $500 million in assets.

The units want to sell or transfer their only two plants in active operation, in Cayuga and Somerset, as part of a settlement with certificate holders, Peter Norgeot, president of AES NY, said in a court filing.

As we reported in May, financial problems at AES Cayuga are causing headaches for taxpayers in the Lansing school district.  Most Finger Lakes residents understand the Obama recession's impact on AES' power sales, but how many of us have ever heard of the Regional Greenhouse Gas Initiative?  The RGGI boils down to a massive New York state tax on coal-fired electric generation, resulting in higher rates for already strapped consumers.  In addition, the tax may be forcing CNY electric utilities to switch to less expensive Canadian hydro power, further damaging the local plants' revenues.

For the past three years, New York has participated in the RGGI Cap & Trade scheme without the authorization of the state Legislature! Already this Cap & Trade energy tax has cost New York businesses and ratepayers a staggering $327 MILLION! Not only are we seeing an increase in our energy bills because of this mandatory cost increase to production being passed on to consumers, but this tax is also hitting us in other areas such as food, goods, and services.

Bold added.  We encourage our Finger Lakes neighbors to attend the upcoming AFP presentation in Ithaca, referenced in the One of Nine post linked above. 

Taxation Without Representation: The Regional Greenhouse Gas Initiative in NYS

A presentation by Lisa Thrun, Grassroots Chair,

The New York Chapter of Americans for Prosperity

Tuesday, Jan. 17, 2012 at 6:30 pm

Tompkins County Public Library - Borg Warner Room

101 E. Green St., Ithaca NY

Chu must resign immediately

Chu breaking ground at Solyndra

Obama's "energy" secretary, Steven "I want Finger Lakes families to pay 10 dollars a gallon for gasoline" Chu, is on the hot seat in front of Congress today.  

Now that the Solyndra bankruptcy has become a full-blown scandal for the current administration, we call on Chu to resign his $200K/year government job immediately. 

We have plenty of room room for Chu at the Finger Lakes' own Five Points.

Anniversary notice: we've now been covering Obama's Solyndra Solargate scandal for over one year!

Finger Lakes wineries' success due to global warming

Bill Wagner at the Winery, 1979

After passage of New York's "Farm Winery Act" back in 1976, a few hard working entrpeneurs and visionaries got started building what is now the Finger Lakes' booming wine industry.  Today, wine tourism is a rare success story in Central New York's otherwise depressed economic landscape.

Our readers may have been under the impression that the wineries' current good fortune is the result of decades of hard work.  We might recall our neighbors risking their life savings, freezing in the mud while they fought our notorious weather to plant and establish those fussy grape vines. 

Come to find out, we were wrong.  In this morning's USA Today, Elizabeth Weise explains the real reason for the region's climb to prominence - global warming.

Warming overall has meant that areas not generally associated with wine are becoming bigger players in the industry. Among them...

•The Finger Lakes wine country in Upstate New York, where the wine industry has taken off since the 1970s, says David Wolfe, a specialist in agricultural climate change at Cornell University in Ithaca, N.Y.

We'd like to invite Ms. Weise to visit our area this February.  That's the best time to don snowshoes, trudge out into the vineyards, and tell the bundled-up locals trimming and tying the vines how the credit for the FL wine industry taking off belongs, not to them, but to global warming.

PA booms, NY suffers

The New York Post discovers that New York City's Upstate neighbors could benefit from increased economic activity.  What took them so long?

‘If it wasn’t for the gas business, none of these people would be working right now,” David Dalrymple said, pointing to one of his crews building a road in Athens Township, Pa.

By “gas business,” he meant drilling made possible by “fracking” -- a process for extracting natural gas that’s legal in Pennsylvania but not yet in New York.

The Post catches up with Upstate bloggers in getting to the heart of the matter.

Then there’s Jennifer Huntington, who operates a 1,000-acre dairy farm with 500 cows in Middlefield, NY.

She has a lease with a gas company for a vertical well on her farm. The well could produce enough gas to service the municipal buildings and hospital nearby -- and give her the much-needed capital to make improvements on the farm. Work there wouldn’t even require fracking.

But a movement led by academics and part-time residents -- people wealthy enough to enjoy the country life without worrying about making a living -- got the town to ban drilling altogether. She has sued the town to get the ban lifted.

The war against fracking is a class war.  Our elites don't want truck drivers, waitresses, building contractors, furniture salesmen, hair dressers, satellite TV installers, or any other of Upstate's non-anointed masses to be able to upset the status quo.  To the swells, their neighbors' financial struggles are nothing more than necessary collateral damage.

Solargate: it's Huuuuge........

Way, way back in November 2010, we began pestering our readers about yet another failed solar energy conspiracy, Solyndra.  In subsequent posts, we've kept you up to date on the growing scandal, now involving corruption and bribery at the highest levels of government.

In less than a year, the scandal has grown to where, were our current president a Republican, he'd be waving goodbye as he boarded his last official helicopter flight on the White House lawn.  For an indication of how big this story has become, Professor Jacobson stayed up late and watched The Tonight Show.  Jay Leno is now doing Solyndra jokes!

And there's good news for us rubes here in the The Finger Lakes.  We are uniquely positioned to cash in on this one: Five Points!

Maximum security between the lakes

Auburn's historic Genesee sign lights up tonight

1950s

Darkened during the Carter Energy Crisis, Auburn's landmark Genny sign will be back on tonight.

On Saturday, as part of Auburn’s annual Founders Day celebration, the renovated sign will be lit up for the first time since the mid-1970s. State-of-the-art LED lights have been installed to replace the original neon tubes.

Genesee Brewing's rent for the sign's location included sending a case of Cream Ale to the building's owner every month.  More in the Post-Standard.

Now

Seneca to ban smoking?

Is rural Seneca County, New York planning to completely ban smoking on all county-owned real estate?  The county's Board of Supervisors will consider the issue tonight, and we assume Seneca's town supervisors will vote to join all the cool counties in banning the evil weed.  However,  almost 25% of all Seneca residents are smokers, well above the state's average, and if they're old enough to smoke, they're old enough to vote.

And don't forget, the new growth industry in the picturesque, but economically depressed, county is cigarette manufacturing.

A local speaks out

In a letter to Dryden, NY's town board, resident Ron Szymanski puts Dryden's me-too fracking ban  in perspective.  Syzmanski lists the logical problems raised by such a ban, and hits what we think could be the result most harmful to the ordinary Finger Lakes citizen.

ANTI-BUSINESS.  The natural gas drilling ban limits opportunities for local businesses, from trucking to restaurants.  The County recently dropped a road ordinance because of its unintended consequences on local businesses.  In addition, it denies Dryden residents access to jobs and further compromises our tax base.

We suspect that prohibiting the growth of easy entry jobs, and the prosperity those jobs might bring to locals, is one of the unstated goals of the organized defenders of the region's status quo.

Manufacturing returns to Seneca Falls

Don't write off our economy just yet.  Whether or not fracking ever happens, it appears manufacturing is making a comeback in the Finger Lakes region.  Finger Lakes Daily News reports:

The Cayuga Indian Nation of New York plans to begin manufacturing it's own brand of cigarettes later this year at the former Klionsky Scrap Metal property at 61 Ovid Street in Seneca Falls.

No need to wait for Andy Cuomo's expensive regional economic development councils.  Not subject to onerous New York regulations, not subsidized, not taxed, and producing a potentially deadly product, but a factory nonetheless.

"Locals cash in"

Hog Father's

New York's sophisticated opponents of shale gas extraction often dismiss any possible benefits of "fracking" to the local economy.  "Drilling jobs will only go to outsiders from Texas," say our comfortable elite.  Meanwhile, all sorts of non-drilling jobs are being created in neighboring Pennsylvania's Marcellus gas boom.

“It’s the best thing that ever happened to me,” said Frank Puskarich, owner of Hog Father's restaurant in Washington and daily caterer to Range Resources‘ “frack jobs” across the region. The boisterous barbecue pit master said he has hired eight employees who do nothing but prepare chicken, ribs, brisket, macaroni and cheese and other entrees for tired, hungry workers. He picked up the contract with Fort Worth, Texas-based Range Resources five years ago, and that also has helped drive business to his small establishment in Washington.

“It’s standing-room only for lunch” every day, Mr. Puskarich said. “[Business] has been tremendous. There’s a lot of work for people who want it, and not just in the food business.”

A busy restaurant is a great place for your kid to snag a first job, no experience required.

Update:
Unlikely Hospitalist emails news of more Marcellus related, non-drilling  jobs being created in Painted Post and Elmira.

Mike Teutul to visit Seneca Falls

Mikey

Mike Teutul of Orange County, NY, will be signing autographs at Fuccillo Ford in Seneca Falls this Saturday, May 14, 10:00 to 2:00.  Mikey is the biggest celebrity to travel Rts. 5 and 20 in some time, so mark your calendars.

AES power plant back on line?

On April 21, we confirmed that the AES Cayuga power plant had been shut down.  South of 5 and 20 is concerned, because lack of demand for AES Cayuga's electricity is a sign of ever worsening economic conditions in the Finger Lakes.

AES management has not responded to our inquiries.  Regardless, our observer now reports that steam is once again rising above the plant.

Finger Lakes wine update

Let's see what's going on our in signature industry, the Finger Lakes wine biz.

The Cornell Daily Sun reports:

Already coping with a significant reduction in state funding, the College of Agriculture and Life Sciences was dealt another blow on April 15 by the federal budget agreement, which rescinded $21 million in federal funding for two planned CALS research facilities.

Although the design phase for the facilities has been completed, construction of the research stations — the Center for Grape Genetics Research in Geneva, N.Y., and the Robert W. Holley Center for Agriculture and Health in Ithaca — is delayed indefinitely as Cornell returns the money, which was given to the University in five separate allocations between 2005 and 2010.

Some FL wineries currently for sale:

Castle Grisch

Arcadian Estate

Cobblestone

Four Chimneys

Logan Ridge

Normal turnover, or a trend?  Click on "comments" to share your thoughts.

States that really have no sales tax on clothing

Lee Premium Outlets

With New York "eliminating" sales tax on "low priced clothing," Finger Lakes shoppers may be surprised when they are still charged 4% sales tax on those off-brand sneakers.  With public employee pension,  health care and union contract mandated salary increases still going through the roof, its not likely that counties will volunteer to drop their 4% take.  So let's remember Adam Smith, and follow the pointing finger on his invisible hand.

Here are three of New York's adjoining states which have zero sales tax on any clothing, from t-shirts to ball gowns.  These states all feature convenient clothing malls just over the New York state line.  For instance, New York's state employees often make the scenic 40 minute drive from our state capital to shop tax-free at Lee Premium Outlets in Massachusetts, pictured above.  From eHow Money:

Necessities like clothing are exempt from the sales tax in Massachusetts.

New Jersey's sales tax exemptions include clothing, which gives the state a competitive advantage over neighboring states that do tax clothing. Shoppers often come from other states to shop for clothes in New Jersey.

As part of an initiative to minimize the tax burden on low-income individuals, Pennsylvania does not impose a tax on clothing.

And Professor Jacobson is spared sales tax on any clothing he purchases in Rhode Island.

While our state and local governments try to squeeze even more blood out of reeling Empire State taxpayers, they're actually creating jobs for our neighbors.

Phish at the Glen

Grateful Dead arrive at Watkins Glen, 1973

 

Big weekend show to replace cancelled Indy Racing League event, local businesses breathe sigh of relief:

The rumors surrounding a Phish concert at Watkins Glen International were put to rest Thursday afternoon with an announcement that the jam band will hold a major three-day music festival at the storied racing venue.

The event, called Super Ball IX, will be the group's ninth multiday festival. It will be held July 1-3, the weekend that in past years has seen Danica Patrick and Helio Castrovenes race IndyCars at the track.

The band will play multiple sets during the weekend, said Ryan Lake, senior public relations manager at WGI.

Tickets, which will sell for $200 each for the entire weekend and include onsite camping, go on sale Monday and can be purchased online at www.superballIX.portals.musictoday.com.

Thinking of hiring an employee?

For the convenience of Finger Lakes small business owners who might be considering employing somebody, here's an informal, and not necessarily complete, list of the forms you'll need to prepare and submit to various authorities:

• Form SS-4 Application for Employer Identification Number (EIN) (www.irs.gov/pub/irs-pdf/fss4.pdf) – Your business must obtain an EIN if you have employees or will file for other taxes such as excise taxes.
• Form NYS-100 New York State Employer Registration for Unemployment Insurance, Withholding, and Wage Reporting (www.tax.state.ny.us/pdf/2002/wt/nys100_1002.pdf) – To be filed when you become an employer.  You will be assigned an Employer Registration Number, which is separate from your federal EIN.
• W-2 (www.irs.gov/pub/irs-pdf/fw2.pdf) – Form stating wages and withholdings made for an employee throughout the year.  A copy is sent to the employee, the Social Security Administration, the IRS, the NYS Department of Taxation, and to county/local governments that have an income tax such as New York City.
• W-3 (www.irs.gov/pub/irs-pdf/fw3.pdf) – Similar to the W-2, filed with the Social Security Administration
• W-4 (www.irs.gov/pub/irs-pdf/fw4.pdf) – Form filled out when an employee starts so that their employer knows to withhold the correct amount of taxes.
• W-5 (www.irs.gov/pub/irs-pdf/fw5.pdf) – Employees eligible for the Earned Income Credit may file this form to get an advance on their credit.
• Form NYS-45 Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return (www.tax.state.ny.us/nyshome/efile_addnys45.htm) – State form to be filed quarterly.
• Form 940 Employer’s Annual Federal Unemployment (FUTA) Tax Return (www.irs.gov/pub/irs-pdf/f940.pdf) - Required if you had cash wages greater than $20,000 or employed 10 or more workers throughout the day for 20 or more weeks in the year.
• Form 941 Employers Quarterly Federal Tax Return (www.irs.gov/pub/irs-pdf/f941.pdf) – Required to report wages paid, tips received, federal taxes withheld, Social Security and Medicare withholding, and advance EIC payments for non-farm workers.
• Form 943 Employers Annual Federal Tax Return for Agricultural Employees (www.irs.gov/pub/irs-pdf/f943.pdf) – Form 941 for farms.
• Form 1099 (instructions www.irs.gov/pub/irs-pdf/i1099msc.pdf) – Must be furnished to people who received $600 or more in non-employee compensation throughout the year.
• Form 945 Annual Return of Withheld Federal Income Tax (www.irs.gov/pub/irs-pdf/f945.pdf) – Used to report income tax withheld for non-payroll wages.
• Form 4029 Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefit (www.irs.gov/pub/irs-pdf/f4029.pdf) – Certain members of religious organizations (generally Amish or Mennonite in agriculture) may file this form to exempt themselves (and their employer) from Social Security and Medicare taxes.

 Make a mistake and you could end up in jail.  

Government regulation favors big business over small business. That intimidating tsunami of paperwork might be easier to handle if your HR operation is outsourced to a contractor in India.   Next time your local politician is telling you how she supports small business, ask her to run through this list with you.

Finger Lakes town requests ambulance proposals

1956 Cadillac

Last week we advised Finger Lakes municipalities to embrace privatization of services, citing the Villlage of Minoa's plan to get out of the ambulance business.  Today the Ithaca Journal reports that the Town of Ulysses is requesting proposals from private sector EMS providers.

Ambulance service in the rural Town of Ulysses has long been provided under contract by the tiny Village of Trumansburg's volunteer squad.  As more demanding lifestyles made volunteer EMT staff harder to find, Trumansburg hired professional staff to provide 24-hour coverage.  

As goverment employees, the paid EMT crew quickly became very expensive and difficult for part time village officials to manage.  The volunteer service did not charge patients, adding to the financial stress.  When it was realized that many patients' heath insurance would pay for ambulance rides, a suggestion was made to begin billing for services.  This led to a protracted battle between  officials trying to deal with massive costs and local leftists who view free EMS service as the first step toward 100% government provided health care.

After years of debate and legal fees, Ulysses Town Board member Kevin Romer is leading an effort to consider privatization:

The town board will send out a request for proposals to provide ambulance and emergency medical service to ambulance providers to get a clearer picture of what the disparity in annual costs is between the Village of Trumansburg's EMS service and commercial providers such as Bangs Ambulance...

At the board meeting Tuesday night, board member Kevin Romer said the request for proposals is for comments only and to allow EMS providers to give feedback about their expectations of ambulance service. Romer said the village has so far been uninterested in privatizing, even if it would save money.

"All this is just to get information on what it would cost (for a private company to provide ambulance service in town)," Romer said.

Romer said Bangs Ambulance gave him an unofficial rough estimate of $243,000 annually for providing ambulance service based in the village, while the village's total EMS budget hovers around $450,000, he said.

Romer said he's frustrated by how little progress has been made on the issue since he became involved. He said the EMS Task Force, a joint-municipal committee formed to solve the issue, hasn't even met in five months, although it does have a meeting scheduled this month. (bold added)

Many (but apparently not all) Finger Lakes taxpayers are struggling to keep their homes in the face of some of the highest property taxes in the country.  Yet even as those taxes increase every year, our local governments are reluctant to consider new ideas for providing basic services.  Part of the problem is that busy families are often unable to keep up with these issues, only to be shocked yet again when they open their tax bills.  This blog intends to raise awareness.  Please discuss with your neighbors.