County Administrator's Corner: Aug. '09

This is the second in a series of monthly columns provided by County Administrator Timothy O'Hearn on matters involving Schuyler County and its citizens. His first column can be seen by clicking here.

By Timothy O'Hearn

Economic Development / Community Revitalization (Part 1)

As the nation continues to struggle through a recession, Schuyler County, through a strategic investment in economic development, is faring better than most. While not immune from the effects of a global recession, we have taken advantage of community assets to leverage diverse resources with the end result being strong growth in our local economy. This month’s issue will focus on our economic development strategies and partnerships and the outcomes that are a direct result of same.

Schuyler County is actually a leader in developing an economic development structure, utilizing a public / private partnership both as a funding mechanism and for governance and policy making. Formed in 1998, the Schuyler County Partnership for Economic Development (SCOPED) has proven to be a highly effective organization whose list of accomplishments is as impressive as it is long. Under the leadership of Executive Director Kelsey Jones, this organization has played a key role in securing over 15 million dollars in grant funding, which has been leveraged into almost 31 million dollars of investment in infrastructure expansion and business development. SCOPED’s board of directors is comprised of representatives of the public and private sector and is funded through this partnership. Public funding comes from the County government and the majority of towns and villages. Private sector funding comes in the form of membership and annual dues, and the goal is to have public funding at least match private sector funding.

It is interesting to note that this model is being emulated by other governments with increasing frequency, most recently having been proposed by the County Executive in Broome County. It is not uncommon for many counties to fund 100% of economic development initiatives through the public sector, specifically county government. The collaboration of partners in SCOPED is further evidence of the strength of our community and while greatly appreciated has also produced significant results.

It is important to note that while SCOPED has played a major role in this area, there are others deserving of accolades as well. Our local government partners have continually demonstrated their commitment to collaboration and cooperation, fully understanding that we can accomplish significantly more collectively than we can individually. Additionally, our local business community has stepped forward in a major way as evidenced by the numerous and extensive investments in new businesses and upgrades and improvements to existing businesses. One need only drive down Franklin Street in Watkins Glen or Main Street in Montour Falls to witness the revitalization that is occurring within our community. Speaking of results, the following is a sampling of recent accomplishments in the area of economic development and community revitalization:

Watkins Glen Harbor Hotel

This may be the single largest event in recent history. Representing the successful culmination of over 30 years of planning through the Watkins Glen Tomorrow initiative, this hotel / conference center at the southern end of Seneca Lake has exceeded everyone’s expectations be it in beauty, performance or quality of lodging. Originally planned as an eight million dollar branded motel, the project evolved into a sixteen million dollar hotel and conference center largely due to Mr. Jones and other local leaders' efforts to convince owners David Hart and Peter Krog that this area could support such a facility and that this would fill a gap that exists in locating small to medium size conference events. In its first full year of operation the Harbor Hotel is a source of pride to our residents and amazement and awe to our visitors. In addition to being a major economic engine on its own, the Hotel will undoubtedly serve as a catalyst for additional development and investment in our community. Parallel to the construction of the Hotel and very instrumental in influencing the developer’s decision to commit to this project, the Village of Watkins Glen, with assistance from grant specialist Brian Williams of SCOPED, successfully applied for and implemented an Appalachian Regional Commission (ARC) grant of $150,000 for the purpose of reconstructing First Street in the Village. This project also turned out exceptionally well and has dramatically improved the appearance of the area while providing much needed additional parking.

NY Main Street Grant/Franklin Street, Watkins Glen

In another notable accomplishment, SCOPED and County Planner Danielle Hautaniemi assisted the Village of Watkins Glen in securing $200,000 for building and façade improvements on Franklin Street. This money was leveraged into over a million dollars of improvements to the main thoroughfare of this bustling village. This significant investment by the respective business owners is a testament to their recognition of the need to continually invest in their property and the dividends that can be reaped by doing so. A walk down this busy thoroughfare will attest to the magnitude of this effort as I continue to hear comments from residents and visitors alike as to the beautiful transformation that is occurring here. In an effort to continue this momentum, a 2009 follow-up application for $200,000 was submitted by SCOPED with Community Progress as Local Program Administrator for façade improvements for up to six buildings on Franklin and Fourth Streets. Announcement of grant approvals is expected shortly.

Magee Point Landing LLC

Led by local resident and developer Bill Benedict, Magee Point Associates has developed plans to renovate the former Village of Watkins Glen Electric and Water Plant into a multi-use complex of eight high-end apartments and a restaurant featuring lakeside access and high-end amenities. The Village of Watkins Glen has submitted this project for Round Three of Restore NY funding and we are confident that this too will be a successful application. Completion of this project will extend to the north the revitalization efforts within the village and will help to meet the increased demand for high-end housing and lakeside dining.

Montour House

Quite possibly what the Harbor Hotel is to Watkins Glen, the Montour House is to Montour Falls. After suffering from years of decay and being at risk for “demolition by neglect,” this historical building is being restored to its original stately condition. Developer Bruce Nelson was chosen by the Village of Montour Falls to renovate this local landmark. Mr. Nelson is doing so with painstaking attention to detail and with the highest level of quality in converting this building to office and residential space. Under the tenacious leadership of Mayor Donna Kelley and with assistance from SCOPED, the Village received $330,000 for the Montour House as part of the fall 2008 Main Street Grant and $700,000 from the Round 2 Restore NY fund. The developer is hosting monthly open houses for the community, and the building is nearing completion. Schuyler Hospital and Elmira Savings Bank are the first two commercial tenants. As is the case in Watkins with the hotel, the Montour House will most definitely serve as a catalyst for additional investment and improvements on Main Street in the Village and will positively influence future grant funding decisions at the state level by its resounding success.

NY Main Street Grant/West Main Street, Montour Falls

Similar to the efforts in Watkins Glen, SCOPED submitted in November 2008 on behalf of the Village of Montour Falls an application for additional Main Street funding and this was also approved. The $465,000 in funding will be used for restoration of the Montour House as an anchor project and several other properties on West Main Street. Discussion has progressed with five other property owners interested in participation. Final projects are under review and will be selected soon. It is our hope that the success experienced in Watkins Glen with this program will be transferred to Montour Falls. Given that this may arguably be the prettiest main street in the country as home to Shequaga Falls and the “Glorious T” historic district, there is little doubt in mind as to realizing this hope.

Watkins Glen Lakefront Management and Development Strategy

In an effort to continue the efforts at responsibly developing the lakefront in Watkins Glen, the County Planning office has taken the initiative to assist SCOPED in applying for funding to study and assess the viability of responsibly developing yet preserving this natural resource. The $15,000 request to ARC for funding consultant services has received final federal approval. A local cash match has been committed from SCOPED, Schuyler County and SCIDA. Funding from the NYS Office of Community Renewal for $22,500 with the County as lead agency was approved in January. Work with Cornell Cooperative Extension (county planning) has begun to outline the final scope of work. A Request For Proposals (RFP) will be issued by SCOPED for consultant services in August.

2008 NYS DOT Transportation Enhancement Program (TEP)

A 2008 application to NYS TEP for landscaping and traffic improvements at the Main Street and Rt. 14 intersection in Montour Falls was approved for $440,000. The contract with NYS DOT is being executed; the Village will then issue RFP’s for engineering/design services with SCOPED’s assistance. This project will dramatically upgrade the gateway to Montour Falls and certainly complements the revitalization efforts already underway in the Village.

FY 2008 ARC Grant--Ecological Master Plan

Cornell Cooperative Extension is acting as Project Manager for this effort; SCOPED is Grant Administrator. A revised scope of work more closely reflecting community wastewater needs was sent to the Appalachian Regional Commission (ARC) for approval in July. Treating leachate from the closed Irelandville Landfill as well as exploring alternatives sites for the Watkins Glen Sewage Treatment Plant are both possible areas for further study and recommendations.

Round 3 Restore NY

SCOPED prepared an application for funds to renovate the former Rural-Urban Center into mixed use residential and commercial space. The application was submitted on April 30 by the Village of Montour Falls on behalf of Nelson Development Group. It is expected that funding will be announced soon and if successful in our application, work will begin to convert this former school/county office to mixed use residential and commercial occupancy. As previously mentioned, the success of the Montour House lends credibility to an application for this funding and we are confident that this project will move forward. In addition to contributing to the synergy already in place in the Village in terms of revitalization, completion of this project will help to address what has been identified as a critical shortage of quality affordable housing that exists within our county while returning this property to taxable status.

Broadband Technology Opportunities Program (Universal Broadband Access Grant)

Meetings have been ongoing with representatives from SCOPED, the Southern Tier Central Regional Planning Commission, Schuyler County, the Watkins Glen Central School District, ECC Technologies and ArtMatrix-Lightlink on a possible grant application to expand wireless broadband access to remote areas. A Notice of Funding was announced by the National Telecommunications and Information Administration and USDA Rural Utility Services for three rounds in 2009-2010. USDA Rural Development also offers a broadband program. In that this is a national priority, and Schuyler County -- due to its rural nature -- is an ideal candidate for this funding as there is a legitimate quantifiable need for this technology in a large portion of our area, we again feel confident about our chances of securing this funding.

Finger Lakes Distilling

The Town of Hector is experiencing significant growth on a number of fronts. One of the most recent and notable developments is the establishment of the first distillery in the County. With a picture perfect location overlooking Seneca Lake on State Route 414, Finger Lakes Distillery offers visitors a unique experience designed to complement the continually expanding wine tours in our region. Using locally grown fruits, owner Brian MacKenzie is distilling vodka and whiskey and is the only exclusive distillery in the entire region. Since opening the doors to the public just weeks ago, business has been phenomenal, according to Mr. MacKenzie. Both SCOPED and the Schuyler County Industrial Development Agency provided financial assistance in developing what is sure to become a first-class destination for thousands of visitors.

Cuisine Trail

While on the subject of Hector….In May 2007, the Department of Agriculture and Markets announced a new program that created the NYS Farm, Apple & Cuisine Trails. The program is designed to promote greater marketing and visibility for agricultural producers. The initial plan is to allow 10 farm trails, 7 apple trails and 5 cuisine trails to be designated in the state. One cuisine trail has already been approved which resulted in the creation of the Cooperstown Beverage Trail.
SCOPED began research on the requirements for trail designation and looked at the feasibility of pursuing such a project in Schuyler County. After looking at the available options, it was decided to pursue a Cuisine Trail designation that promoted a group of local restaurants, mostly in the Town of Hector, who extensively use local farms for the produce used to create their menus. The basis for the trail would be developed along Route 414. A trail in this location would hopefully bring additional visitor traffic to the east side of Seneca Lake and extend the season for these businesses as well as increase patronage.

As the focus of the trail highlights the connection to local agriculture, the project would create an opportunity for further business development of the farms in the area. Ideally, the Trail would increase the tourist money spent in the Town of Hector, which would result in higher sales tax revenue. Businesses in the area not specifically affiliated with the project would also benefit from the influx of cash spent by visitors as they journey along the trail, which then spreads out into the local economy.
Contact was made with the Department of Agriculture and Markets to begin the initial steps for submitting a formal application. The Department of Agriculture and Markets requested that an informal information packet be submitted with the proposed trail along with supporting material to show local points of interest as well as letters of support from the proposed participants.

At this time, the project is still under review by the Department of Agriculture and Markets as well as several other state agencies that have oversight regarding the Trail designation. Additional information has been requested and was provided.

Participants could include the Smok 'n' Bones BBQ, the Grist Mill Café, Skyland Farm, Stonecat Café, Red Newt, Dano’s and Suzanne’s, the latter two in Seneca County. Several of these are using products from local farms -- from meats and cheeses to fruits and vegetables -- which is important to the economy.

FY 2010 Appalachian Regional Commission Area Development Grant

SCOPED submitted an application for consulting services to develop a Downtown Improvement Strategy for the Villages of Burdett and Odessa for funding in 2010. Approval at the regional level was received in July. It is hoped that this will be a vehicle for planning and promoting responsible development in these two villages similar to what has already occurred in Watkins Glen and Montour Falls.

Rail

The County is the applicant on a Federal Railroad Administration grant compiled by SCOPED. The proposal is for additional turnarounds at US Salt and Cargill to improve rail service and safety. The federal agency is still reviewing. This project is critical to the successful development of Magee Point as well as serving the growing needs of our two salt plants.

US Salt

A contract was finalized with the New York State Dormitory Authority for funding of the biomass boiler project at US Salt. This project will help US Salt stay competitive by providing a stable renewable energy source. The company has invested over 16 million dollars to develop this technology and will be creating 8-10 jobs as a result. Additionally, the company is considering an additional investment of approximately 40 million dollars to construct and develop an energy storage capacity. This also would result in up to 10 new jobs.

The preceding list is by no means all inclusive and is intended to provide the reader an illustration of some of the many positive outcomes we are experiencing in response to our investment in community development. It also illustrates the diverse segments of business development and investment that are assisted by our efforts. You might ask “What specifically does this mean to the average taxpayer?” As an illustration of some of the quantifiable outcomes, I would cite sales tax and room tax revenues. Through the first two quarters of 2009, Schuyler County was one of only eight counties in the state to experience an increase in sales tax revenues. In the first quarter we were the second largest increase over the previous year statewide at a 22% growth rate. At the end of the second quarter we are in the top five counties with a year-to-date increase of 10.3%. Room tax receipts for this period are even more impressive, with a first-quarter increase of 80% over the prior year and a year-to-date increase of 65%. The County Legislature has designated the Chamber of Commerce as the local Tourism Promotion Agency, and room tax proceeds are utilized to fund this activity.

With regard to the average taxpayer, increases in revenue sources such as sales tax lessen our dependence on property tax to fund the cost of government and in fact have helped the County lower the tax rate by over $2.00 per thousand of assessed valuation in the past three years. In the wake of the release of the statewide numbers for sales tax and our standing in stark contrast to the negative trend of the majority of the state, I have been frequently asked by various media sources what I would attribute this phenomenon to. While I would love to provide the detail shared in this article in response to such questions, print space and sound bite needs require a condensed answer, so I have responded by listing three factors:

1.The construction and occupation of the Harbor Hotel in Watkins Glen.
2.The popularity and affordability of Schuyler County and the Fingerlakes as a world-class destination for millions of visitors annually.
3.The immediate results of local investment in our downtown areas.

Each of the above listed factors is significant in its own right. When combined, however, the sum is far greater than the parts, significant as each one is. As mentioned in last month’s article, it is indeed an exciting time for Schuyler County! We continue to seek ways to maximize our investment in our economic future while promoting the principles of smart growth. You may have noted by the heading that this offering is part one of two. In the second part of this narrative I will be discussing funding economic development and recent discussion by the Council of Governments on this subject. I hope you’ll stay tuned for part two, where the subject of developing the Business Park will also be explored.

Photo in text: Schuyler County Administrator Timothy O'Hearn