Opportunities

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The Daily Star, Oneonta, N.Y.

Opportunity

May 30, 2009

`What I’m saying is we need to look at everything.’ — Betty Anne Schwerd, R-Burlington, Administration Committee member

Star file photo by Julie Lewis

The Otsego County Courthouse, left, and Office Building, right, on Main Street in Cooperstown is seen in April 2008.

Otsego County eyes cuts in weak economy Expected drop in sales tax revenue hurts budget, county reps say By Tom Grace Cooperstown Bureau COOPERSTOWN _ As sales tax collections slump during the 2009 recession, Otsego County government is working to restrain expenses in the short term, and create more efficient ways to deliver services in the future. With a lively tourism industry and a busy shopping district on Oneonta’s Southside, Otsego County has for years counted on growing sales tax revenue. And until the last half of 2008, collections had increased enough to allow the county budget to expand nearly every year, even as the property tax levy remained nearly flat. Not anymore. Although the county does not receive final accounting figures from the state until months after taxes are collected, preliminary numbers indicate that people are buying less, generating less tax. The 2009 county budget calls

for collecting $33 million in sales tax, but James Johnson, R-Otsego, chairman of the county’s Administration Committee, said the county may come up about 5 percent short of that this year. ``There have been some encouraging signs, particularly in the tourism industry, but I think we have to plan for the worst, while we hope for the best,’’ Johnson said. Toward that end, the board has tightened its purchasing policy, requiring all equipment purchases to be approved by parent committees and the Administration Committee, reducing the cost of purchases that need parent committee OKs from $10,000 to $5,000, and Schwerd requiring all purchases of $10,000 or more to be reviewed by the Administration Committee. ``We just want to be sure that everything we’re buying is needed,’’ Johnson said. The Administration Committee and other board members also have been discussing a policy of reducing the county

About this section: This supplement to The Daily Star was edited and designed by Daily Star Lifestyle and Special Sections Editor Denielle Ziemba. The cover was designed by Daily Star Assistant Arts Manager David M. Fredette. Stories were written by Daily Star staff writers Mark Boshnack, Patricia Breakey, Tom Grace, Jake Palmateer and Denise Richardson, supervised by Managing Editor Cary Brunswick. Most of the photographs were taken and processed by Daily Star staff photographers Julie Lewis and Brit Worgan. Community Editor Emily Popek proofed the pages.

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`There have been some encouraging signs, particularly in the tourism industry, but I think we have to plan for the worst, while we hope for the best.’ — James Johnson, R-Otsego, Administration Committee chairman workforce through attrition, he said. ``There wouldn’t be layoffs, but when someone leaves, we wouldn’t hire someone new,’’ he said. Johnson said the county has more than 800 employees, hundreds more than just a few years ago, and this initiative might gradually control the county’s labor cost. Betty Anne Schwerd, R-Burlington, a member of the Administration Committee, noted that Otsego County provides many services that are not mandated by the state. Whole departments need not exist under state law, although there may be good reasons to keep them, she said. ``What I’m saying is we need to look at everything,’’ Schwerd said.

As an example, she cited the Public Defender’s Office, which has a budget of more than $900,000 a year. While the county is obligated to ensure that poor defendants are represented by lawyers, it does not need to operate a department to do accomplish this. ``All you really need is a list of attorneys and someone to make sure that every defendant gets an attorney,’’ she said. In many cases, when there is a conflict of interest, indigent defendants are represented by assigned counsel rather the Public Defender’s Office, she said. By eliminating the office, all needy defendants would receive assigned lawyers and the county might save considerable money.

The Mental Health Department, Chemical Dependencies Clinic and Planning Department are among other county operations that are not mandated by the state, Schwerd said. County Board Chairman James Powers, R-Butternuts, agreed that board members need to be creative if they are to pare expenses during a recession _ a time when services may be needed more than usual. However, every proposed reduction needs close scrutiny to ensure that it will pay dividends in the long term, he said. ```Not mandated’ is one thing. `Not needed’ is something else,’’ Powers said. For example, although New York state does not require counties to have Powers planning departments, they can be revenue producers, which also improve the quality of life, he said. ``Our Planning Department brought in more than $1 million in grants last year, so I wouldn’t say we’d be ahead of the game if we didn’t have one,’’ he said. See OTSEGO on Page 8

Opportunity

May 30, 2009

The Daily Star, Oneonta, N.Y.

3

Delaware County watching every dollar Officials: High unemployment, state mandates hurt finances By Tom Grace Cooperstown Bureau These are not the best of fiscal times in Delaware County, but times could get worse, and that concerns James Eisel, chairman of the Delaware County Board of Supervisors. ``Sometimes I feel like we’re passing the buck, but there’s only so much you can do at the county level,’’ he said. ``For years, we’ve been talking about state mandates and they’re still coming,’’ he said. Along with state mandates, often there are commitments to state funding. But state commitments are subject to revision, often with little notice, he added. ``Let me tell you about one I just found out about. When someone violates their parole and has to go Star file photos by Julie Lewis back to jail, we have been paid $37-a-day by the state Above: The Senator to keep them in jail. Charles D. Cook County ``Now, the state has Office Building on Main decided it won’t pay that anymore,’’ said Eisel. ``I Street in Delhi. Right: checked with the sheriff The Delaware County and last year, that would Courthouse at the edge have cost us $66,000.’’ of Courthouse Square in So, this year, former Delhi. offenders had better stay out of trouble, or the county’s finances may take a hit, he said. ``It sounds like a small thing, but nothing’s small this year,’’ Eisel said. ``We’re doing everything we can of their prescriptions,’’ think of to he said. ``I’ve heard from save monpeople who are very grateey.’’ ful for that.’’ Stephen The bottom line, Acquario, though, is that counties executive dihave only a few ways to rector of the collect money, Eisel notNew York ed. Association — Delaware County Board Departments may of Counties, noted that Chairman James Eisel charge for services, but most of a county’s money state politinew positions, and we’re comes from property taxcians have talked about reducing not filling jobs unless we es and sales tax, he said. And in mid-May, it approperty taxes, but con- absolutely have to,’’ he pears that sales tax revetinue to raise them indi- said. The county also is striv- nue for Delaware County rectly. “Despite recent talk ing to help residents in will be substantially lowof reducing the property ways that don’t cost much, er for the year. ``We might collect $2 tax burden facing hom- he noted. ``We’ve adopted the million less than last eowners and businesses in New York state, state Pro-Act Drug Plan, so year, and that’s not good,’’ leaders continue to push people without health in- Eisel said. ``We’ve got an unemcosts down to county surance can afford some property taxpayers, who are already facing fiscal pressures of their own,” he said in an e-mail to The Daily Star. “State leaders need to do more than talk about property taxes. They need to make difficult spending decisions that are going to reduce property taxes.’’ The change in who pays to house parole violators was part of the 2009-10 budget, he said. Another change in the budget _ reform of the Rockefeller drug laws _ also will cost counties more, according to Acquario. State officials had intended to cut down on state costs of imprisoning nonviolent offenders, he wrote. However “most of the convicted drug offenders will now end up in local correctional facilities, with the costs being picked up by county property taxpayers.’’ Eisel said he sometimes listens in amazeWe’re located in Sidney, their AT-A-Glance®, ment at the way the state NY, but the products we Mead®, Cambridge® or handles its finances. make are used every Day Runner® product to ``It was hard to believe that they would even minute of every day by plan or organize their think of raising spending people from all walks of busy lives. again this year,’’ he said. life throughout America. But as soon as state leadWe’re proud to be a part ers knew they could use This very minute, of their lives and proud to federal stimulus money to hundreds of people be a part of the local shore up the budget, ``they somewhere are using community. refused to make the hard decisions they should have, and put everything off for later.’’ Against a backdrop of international recession, record federal defiConsumer & Office Products cits and irresponsible 101 O’Neil Road state spending, Delaware Sidney, NY 13838 County officials are work607-563-9411 • www.mwv.com ing to conserve every dollar, Eisel said. ``We’re not creating

`It was hard to believe that (state leaders) would even think of raising spending again this year... they refused to make the hard decisions they should have, and put everything off for later.’

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ployment problem, a rate over 10 percent. Fortunately, people can collect unemployment benefits and there is a federal extension, but I’m sure that

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lect sales tax. All that portends a very difficult 2010 budget year, he said, unless the economy rebounds in the next six months.

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Opportunity

The Daily Star, Oneonta, N.Y.

May 30, 2009

City of Oneonta moves forward on plans Mayor credits good budgeting for ability to continue projects By Jake Palmateer Staff Writer ONEONTA _ The city of Oneonta is doing well in the recession and is positioned to move forward through the remainder of the year, according to Mayor John Nader. “We really began working on the ’09 budget very early in anticipation of possible stagnation on sales tax (revenue) and possible loss of state aid,” Nader said. The city also inherited healthy finances from past governments, he said. “Some important projects are going to be moving ahead,” Nader said. These include the reconstruction of Bugbee Road, and the Veterans Memorial Walkway in Neahwa Park. The city has been judicious in planning for these and other projects, Nader said. Unlike many cities in the state and country, Oneonta has not been forced into layoffs or major cuts in service. Many cities have imposed hiring freezes _ but not Oneonta. “We haven’t had a real discussion of that at this point,” Nader said. Nader said there seems to be less anxiety over the state of the economy now than at the start of the year, and city administrators and the workforce are always seeking ways to tighten the belt. But he said it may take time for two key economic indicators _ sales tax revenues and the unemployment rate _ to show improvement. “I don’t think they will turn around right away,” Nader said. The recession took hold just as the city and Otsego County Development Corp. solidified plans for the former Bresee’s complex. A developer was hired to design and perform the work, which has so far not advanced much beyond the conceptual phase. But Nader said city residents will begin to see activity at the site, including the tearing down of the metal facade. “It is moving forward,” Nader said. The renovation could “come on line at the right time,” Nader said. Because of the recession, attracting tenants right now would be a struggle, he said.

Star photo by Julie Lewis

Oneonta City Hall on Main Street in Oneonta is seen on April 27.

`Certainly, I am concerned about (downtown) vacancies. Retail is going through a very rough patch.’ — Oneonta Mayor John Nader As the recession runs its course, demand for space downtown may pick up, Nader said. But lack of space downtown is not currently the problem. “Certainly, I am concerned about vacancies. Retail is going through a very rough patch,” Nader said. Whether it is government or the private sector, these are challenging times, Nader said. “I think everyone needs to know it is a very competitive environment out there,” he said. Oneonta itself is a smaller city than it used to be. The population of the city dipped from 13,954 in 1990 to 13,292 in 2000, according to the U.S. Census Bureau. The population was estimated to be 13,225 in 2007, according to the bureau. But Nader said the city is at an advantage compared to other small cities in the state due to the presence of Hartwick College, the State University College at

Oneonta, as well as two major health care providers, A.O. Fox Memorial Hospital and Bassett Healthcare. “We have something of a brand as a college town,” Nader said. Although Oneonta is a college town, it has seen a burgeoning summer tourist season sparked, in a large part, by families of children attending any of the area’s three baseball camps. But how much the recession will affect downtown this summer season is still unclear. “I’m going to be very curious about the tourist season,” Nader said. “We’ll just have to weather that.” Nader said he always encourages the area’s year-round residents to spend time on Oneonta’s Main Street and said the city is planning a public awareness campaign about the benefits of shopping and spending time in the city’s downtown area.

Star photo by Brit Worgan

Plans for revamping the former Bresee’s building on Main Street, seen here May 18, are moving forward, despite the poor economy.

May 30, 2009

Opportunity

The Daily Star, Oneonta, N.Y.

5

`The town is in very good shape financially. We cut taxes last year by 6 percent. We’ll just continue to budget conservatively.’ — Oneonta Town Supervisor Robert Wood

The Oneonta Town Hall in West Oneonta is seen May 7.

Star photo by Brit Worgan

Oneonta supervisor predicts growth Drops in state aid, sales tax a concern, officials say

`I still think we have a great deal to offer with where we’re located. We do have a lovely, lovely place to live.’

By Jake Palmateer Staff Writer The town of Oneonta has weathered the recession well and faces continued growth in the near future, according to town officials. But it must remain fiscally cautious, they said. In terms of its operations, the government in the town is well-positioned to move forward, Town Supervisor Robert Wood said. “I think we are going to be OK,” Wood said. Oneonta _ a half-hour drive from Cooperstown The National Soccer Hall of Fame complex, with the _ is a way station for building in the background, is seen in April 2008. National Baseball Hall of water district, as well as Fame-bound tourists and above $4 per gallon. Wood said it is not a water tower on county a destination in its own Route 47, Lusins said. right in the summer time. clear what bearing that had on the local tourism The sewer and water The town offers sevindustry, as well as the district _ estimated at eral hotels, many restausales tax that is returned $6 million _ is in the rants and big-box retail, to local government. planning phase and, if mostly centered around “I don’t think there completed, could serve the Southside area. was any significant imto encourage even more It is also home to the pact,” Wood said. growth in the town, Wood National Soccer Hall of But Town Councilwom- said. Fame. an Marie Lusins said it is Business looking to The town had a slight only a matter of time. relocate prefer moving growth in population “I see a huge drop in to a location that has mubetween 1990 and 2000, tourism,” said Lusins, nicipal sewer and water, according to the census who owns a bed-andWood said. records. breakfast in the The district was origiDuring that town. nally intended to be contime, the town That drop structed at the same time grew from 4,963 began last year as the Southside highway people to 4,994. and Lusins said project, but the town can Over the all indications are move forward on its own same pethat it will coneven if the highway projriod, the city of tinue through this ect is dead, Wood said. Oneonta, which summer season. The town has applied is located in, “This year it’s for federal stimulus but indepenreally dismal,” money to help fund it. dent from the Lusins said. Lusins said natural gas town, saw its Wood Eventually, the drilling could also prove population loss of sales tax to be an economic boon decline from revenue that accompafor the town by provid13,954 to 13,292. nies the tourism indusing and supporting jobs Wood said he expects and increasing revenue growth in the town to con- try could impact local for private citizens and tinue, especially with the government. “We really must government. construction of the Plains Ultimately, the town at Parish Homestead and proceed with caution,” Lusins said. remains an ideal place the potential developIn planning for next for people wishing to ment of other subdiviyear’s budget, the town move or locate a busisions. board is going to have to ness, Lusins said. “We’re going to keep “I still think we have on trying to provide extra be extremely strict, she said. a great deal to offer with services and expanding But at the same time, where we’re located,” existing services,” Wood it needs to proceed with Lusins said. “We do have said. infrastructure projects, a lovely, lovely place to “The town is in very such as the sewer and live.” good shape financially,” he added. “We cut taxes last year by 6 percent. We’ll just continue to budget conservatively.” But although the town may have kept tight rein over its finances, the state budget crisis has had an impact locally. The biggest evidence of this is the state’s abandonment of plans for a $16 million highway reconstruction project on Southside. “That got put off indefinitely,” Wood said. It’s still too early to predict how the decline in sales tax revenue will affect the town, Wood said. Last summer, before the major turmoil on Wall Street and the large increases in unemployment, the economy was already reeling last summer due to gas prices

— Town Councilwoman Marie Lusins Wright National Soccer Campus and museum Star file photo by Julie Lewis

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The Daily Star, Oneonta, N.Y.

Opportunity

May 30, 2009

Otsego manufacturers seeing success Smaller firms’ flexibility key in downturn, officials say

`They’re able to be more nimble. You have to have a very strong willingness and ability to be flexible in these types of environments.’

By Jake Palmateer Staff Writer The health, education and social services sector make up about a third of the county’s overall workforce. But the county’s manufacturing firms rank third in terms of employment behind retail. The county has a great variety of small manufacturers, said Otsego County Economic Development Director Carolyn Lewis. “I am not nervous,” Lewis said regarding the national recession. Smaller manufacturers often have an advantage, Lewis said. “They’re able to be more nimble,” Lewis said. “You have to have a very strong willingness and ability to be flexible Star photos by Julie Lewis in these types of environAbove, James Moretti, a process engineer at Custom ments.” Electronics, solders a capacitor assembly on May 4 The county’s small manufacturers make ev- at the plant on Browne Street in Oneonta, at right. erything from headsets used by the military and ic capacitors and electri- ing last year at this time,” Schulte said. aero-space industries to cal components. “Our customers are The company, which Belgian beer. other businesses,” Bell employs 70 people, is ex“It’s amazing. We are a said. panding its product line core, home-grown Defense in- and its Oneonta-based small manufacdustry contrac- subsidiary, Ioxus Inc., is turing commutors represents developing new products nity,” Lewis said. 60 to 75 percent designed for applications Many of the comof the business in the renewable energy panies’ products for the company, field. can’t be found on said Michael “They are just about the shelves of loSchulte, Cus- ready to start up produccal stores. tom Electronics’ tion there,” Schulte said. One such comsales manager. Bell said the company pany is Custom “What the fuhas been on the conservaElectronics Inc. Lewis ture holds there, tive side when it comes to of Oneonta. we don’t really replacing employees but “We have a difhas avoided any serious ferent customer base,” know,” Schulte said. But Schulte said the cuts. said Lydia Bell, Custom “We haven’t laid peoElectronics’ human re- firm has been busy in 2009. ple off,” Bell said. “We source manager. “From a sales stand- are a little cautious going Custom Electronics manufactures high volt- point, we are actually forward.” The cost of transportaage, specialized electron- above what we were do-

— Otsego County Economic Development Director Carolyn Lewis

tion and the cost of labor in developing counties is increasing. And this, Lewis said, works to the advantage of Otsego County’s small manufacturers. “We have companies that make products that are needed,” Lewis said. Many of the county’s manufacturing firms form

links of a larger chain, which has been affected by the recession. “People stopped ordering and they were letting their inventories diminish,” Lewis said. “We are starting to see things pick up a bit.” Lewis said Jett Industries and Cobleskill Stone

Products, which often contract for municipal construction projects, will likely see a boon from the federal stimulus package. Considering also that the price of oil is down from what it was last summer, these companies should see a healthy 2009, Lewis said.

Sidney layoffs impacting Delaware County Deposit wood firm adding jobs

By Jake Palmateer Staff Writer Delaware County’s largest manufacturers have been hit hard by the national recession with the firms resorting to layoffs to cut costs. But other sectors and businesses in the Delaware County economy are holding their own and even expanding. Unemployment rates in Delaware County _ as well as surrounding counties, where many of the workers from the large plants live _ have soared since late last year. Most jobs lost were in manufacturing. MeadWestvaco and Amphenol in Sidney announced layoffs in the last quarter of 2008 that were larger than usual during seasonal slowdowns. In April, MeadWestvaco, which manufactures office products, cut about 10 percent of its workforce. The plant has about 1,000 employees. Amphenol, which employs about 1,500 people, has also reduced the size of its workforce at its plant, where electrical components are manufactured. But Glenn Nealis, Delaware County economic developer, said it will be a tough summer, but he thinks the recession may be bottoming out and with it the fortunes of the large plants could turn. “I think they are basically levelling off in terms of any layoffs,” Nealis said. Nealis said Covidien in Hobart, which employs about 700 people and manufactures pharmaceuticals, is doing well. See SIDNEY on Page 8

By Jake Palmateer Staff Writer

Amphenol, above, and MeadWestvaco, left, in Sidney, announced layoffs in the last quarter of 2008. The Hobart Covidien plant, below, hasn’t been impacted by the downturn as much, officials said. Star file photos

Integrated Wood Components is bucking the recession. The Deposit company went from six people in 2007 to 38 people today, including two people who were very recently added to the staff, said Gerard Kamp, the company’s vice president. “We have experienced a large amount of success in the last couple years,” Kamp said. “We have increased our advertising and we get out in front of the customers.” The company provides cut-tosize wood products, including kitchen cabinet components and materials for store fixtures and displays. It also sells assembled products. Because the company is privately held and small, it is more nimble, he said. “I think the secret to the success is vertical integration, hard work and staying in front of the customers,” Kamp said. Vertical integration is when several or all of the steps in the manufacture and distribution of a product are controlled by one company. Smaller companies often an advantage during tough economic times, Kamp said. “It allows you to be more flexible,” he said. In talking with their customers, who come from around the country, Kamp said “They are generally optimistic that the turn-around could come sooner rather than later, and that’s my opinion also,” Kamp said. Integrated Wood Components is not alone in Delaware County, said Mary Beth Silano, executive director of the Delaware County Chamber of Commerce. There are several small manufactures that have managed to weather the storm and be successful, Silano said. Glenn Nealis, Delaware County economic developer, said some of the smaller businesses and manufactures have had to cut employee hours and slow their production. But he said some have been able to re-think their business model and expand into new areas. “They have the ability to shift gears,” he said.

Opportunity

May 30, 2009

The Daily Star, Oneonta, N.Y.

7

`Everybody is watching how they’re spending, watching their budget.’

— George Elsbeck, vice president for finance at Hartwick College

Funding cuts affecting Oneonta colleges SUNY Delhi looks for savings

By Denise Richardson Staff Writer The State University College at Oneonta lost 5 percent of its operating budget as the state cut funding in fiscal 2008-09. Hartwick College in Oneonta has seen its endowment value shrink as stock markets dropped in the past year. The recession for both colleges has meant scrutinizing job openings, finding ways to cut spending and conserve resources while maintaining the high quality of educational programs, officials said. Higher education institutions across the country this academic year have applied a combination of layoffs, not filling vacant positions, cuts to salaries and benefits, freezing staff levels, delaying projects and maintenance and conserving resources to meet budget challenges, according to the American Council on Education. ``Everybody is watching how they’re spending, watching their budget,’’ said George Elsbeck, vice president for finance at Hartwick College. In the 2008-09 fiscal year, SUNY Oneonta absorbed four cuts in state aid, totalling more than $2.4 million or 5 percent of the operating budget, said college spokeswoman Carol Blazina. In response, the college has held positions vacant, implemented savings measures and conserved resources, Blazina said, and officials continue to analyze administrative operations to identify more efficiencies. SUNY Oneonta awaits state aid figures for 2009-10. The college enrolls about 5,878 full-time, part-time and graduate students and has 251 full-time and 189 part-time faculty. The college, which accepts about 38 percent of freshman applicants, has received more than 14,000 undergraduate admissions applications and has introduced several more graduate programs. Blazina said to conserve resources and reduce expenses, SUNY Oneonta has reduced heat in campus buildings, particularly during breaks in classes; asked faculty and staff to limit travel and exercise cost restraint during necessary travel; and encouraged use of alternate forms of conducting business where possible, such as by conference calls, e-mail or other electronic media. In January, Hartwick College cut 14 administrative and support staff jobs, citing losses in endowment earnings and gifts, among other economic stresses. The reductions totaled $361,000 in savings, officials said. Hartwick, a private liberal arts college, enrolls 1,480 students and has 181 faculty, including 111 full-time professors, and the 14 layoffs represented 3.3 percent of the college’s 422 employees, officials said. The college’s 2009-10 operating budget is under development and will be set by the board later

Enrollment up, but cuts must be made, officials say Staff Report

Star file photo by Julie Lewis

Above: Yager Hall at Hartwick College houses the Yager Museum, the library and Slade Theater. Below: The quad at State University College at Oneonta is seen on May 7.

Star photo by Brit Worgan

this spring, Hartwick officials said. No layoffs were made in faculty ranks, officials said, and the college doesn’t have a hiring freeze. Elsbeck said vice presidents are reviewing all positions that may become vacant and deciding whether openings need to be filled immediately. Earlier in the year, the college suspended some searches for full-time tenure-track faculty, he said, and temporarily reduced the number of full-time permanent teaching faculty for 2009-10, pending the completion of a program review. For students in the class of 2013, costs total $42,405, which includes $32,550 in tuition, $4,700 in room, $4,375 in board and $780 in fees, Hartwick officials said. About 70 percent of the college’s revenues are from tuition and fees, Elsbeck said. Hartwick will start offering a three-year bachelor’s degree program in the fall, Elsbeck said. The option would provide families a 25 percent savings yet offer students a complete Hartwick education, he said. In October, Hartwick’s budget managers were

asked to reduce spending by 1.25 percent, as the college looked to cut spending by $1.32 million in 2008-09. Elsbeck said the campus community has been reminded about practicing conservation by turning out lights and unplugging chargers when not in use. The college has installed lights activated by motion detectors in some rooms, and the newest building on campus

has flushless urinals. Annual giving to the college is about $2 million, and gifts to the college are expected to drop between 10 percent and 15 percent in 2008-09. On June 30, the college endowment was $63.6 million, and Feb. 28, it was about $42 million, officials said. Elsbeck said Hartwick continues a conservative approach to money matters, especially by reduc-

ing endowment spending, and the college continues implementing cost-saving measures. The recession has meant not planning any major projects, he said. ``I’ve been through recessions,’’ Elsbeck said. However, the current economic turmoil is global and diverse. ``I have not seen anything this deep,’’ he said. ``To me this is unprecedented.’’

Record enrollment, program expansion and cooperation by the campus community have buoyed SUNY Delhi during the recession, said Joel Smith, director of college advancement. And a touch of entrepreneurship has strengthened the college, Smith said recently. Applications are up 7.7 percent from a year ago, and the college plans to have more than 3,000 students, a record, enrolled in the fall, Smith said. SUNY Delhi is building on its successful programs and on demand for bachelor’s degrees and online instruction, he said. ``Clearly, the value resonates, particularly with parents, in this economy,’’ Smith said. SUNY tuition in 200809 as of fall 2009 will be $4,970 annually. The State University College of Technology at Delhi has 123 faculty members and a support staff of 228 employees, Smith said. The SUNY Delhi campus dealt with $3.2 million in cuts since last year, Smith said. Maintaining 24 positions vacant resulted in a savings of more than $1 million, he said. Conservation efforts, such as turning down thermostats, resulted in $800,000 in savings, he said, and scrutinizing expenses and overtime generated $100,000 in savings. In 2009-10, the college plans to draw $500,000 from campus reserves to help deliver programs, Smith said. SUNY Delhi cuts its budget 10 percent, has delayed purchases and called on affiliated organizations, such as the Alumni Foundation, to help meet challenges, Smith said. See DELHI on Page 8

8

Opportunity

The Daily Star, Oneonta, N.Y.

May 30, 2009

The State University College of Technology at Delhi, as seen from across the valley at Delaware Academy, in May 2008. Star file photo by Julie Lewis

Delhi Continued from Page 7 ``Every purchase request has been scrutinized at the highest levels to keep the budget in balance,’’ Smith said. Smith said SUNY Delhi’s general operating budget support from the state is $8 million. After adding tuition revenues, the

college’s general operating budget is $20 million, he said, which shows how much the college relies on tuition. ``We are now far closer to a model of how private colleges operate,’’ Smith said. SUNY Delhi was the first in the State University system to expand delivery of its four-year programs on to the campuses of community colleges,

Smith said. SUNY Delhi will offer courses at Tompkins Cortland Community College and Onondaga Community College, leading to bachelor’s degrees in hospitality management and business and technology management. Smith said a positive development from the recession has been support shown by the campus community. ``The campus community has really

come together,’’ Smith said. ``Faculty and staff have sacrificed and supported our efforts to conserve energy and save money,’’ he said. ``And it’s their joint efforts that have helped us close the budget gap and ensure that we can continue to deliver quality programs and services to our students.’’

Otsego

Sidney

Continued from Page 2 Manor,’’ Murphy said. Although the county is Other non-mandated services, such as home health set to receive enough state care, probably save money and federal aid this year to by helping elderly people make 2009 a relatively good one, financially, at live at home, and the nursing home, avoid the steep exlong-range capipense of nursing tal and operathome care, Schwing costs remain erd said. daunting, he said. Rep. Rich``I think the ard Murphy, Dcounty board Oneonta, also a should look at our member of the Adbiggest outlays ministration Comand we don’t want mittee, said he to lose sight of that supports measures when we’re resuch as increased Murphy viewing purchasscrutiny of purchases,’’ Murphy said. es in the absence of Murphy noted that Otthe more sweeping changes sego County has lower he would prefer. ``I think our commit- property taxes than many tee has to look at the little counties in the region _ things, especially because an enviable position that we don’t have a county county legislators should manager to do it, but I’d strive to maintain as the rather focus on the big- area comes through recesticket items such as Otsego sion, he said.

Continued from Page 6 Restaurants have been see“They haven’t been impacted ing good business throughout the (by the recession) to the same ex- county, she said. “They’ve been packed,” Silano tent,” Nealis said. There has been a trickle-down said. This only stands to improve effect from the layoffs at the big over the next few months, she plants on the local economy. said. “We really are now “We are going into our seeing the impact,” he busy tourism season,” Sisaid. lano said. The impact of the reBut Main Street retail cession on Delaware in the county’s villages County’s smaller busiand hamlets has continnesses appears to be ued to suffer in some mixed, said Mary Beth Sicases. lano, executive director “Retailers right now of the Delaware County are hurting pretty bad,” Chamber of Commerce. Silano said. “People are “Some of the businesswatching what they are es are very positive. OthSilano spending their money ers are doom and gloom,” on.” Silano said. “I know that there are The layoffs at the large manusome smaller manufacturers that facturers don’t seem to be to are struggling quite a bit.” But some are expanding, she blame, she said. “Those people probably don’t said. “The tourism industry seems to even live in Delaware County,” Sibe pretty stable. People are com- lano said, noting that some people who work in the county commute ing here,” Silano said.

from as far away as Schenectady and Binghamton. “I think it’s just the general economy,” Silano said. “Our Main Street depends on the residents.” But many families are opting for Southside Oneonta where they can find what they are looking for at Wal-Mart at a lower cost and fill up their gas tank for less than in Delaware County, Silano said. Silano said she would like to see more people shopping locally. One other area of improvement could be in the hospitality industry, Silano said. “We need hotels. We need more accommodations,” Silano said. Business owners are also unhappy with state government because of taxes and fee increases that raise the overall cost of doing business, she said. “Most of them are very frustrated with what’s going on,” Silano said, “whether they are Republican or Democrat.”

Opportunity

May 30, 2009

The Daily Star, Oneonta, N.Y.

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Recession hits farmers especially hard By Mark Boshnack Staff Writer

The farming industry locally has been hurting, for the most part, for years. Here, some Otsego and Delaware county farmers and those related to the industry talk about how the current economic situation has affected their businesses.

Bob Tracy, dairy farmer East Springfield dairy farmer Bob Tracy said in his 39 years in the business, the current economy is “the worst I have seen.” It’s not the recession but the price cycle that is hurting, he said. The period between the highs and lows seems to be getting shorter, he said. More has to be done to manage the supply of milk. “It’s not good for anyone,” he said. It only takes a shift of 1-to-2-percent to change things, he said. “It wouldn’t take that much to control it.” Usually when prices start to improve, people lose interest in doing anything about it, he said. “But there is more talk about doing something than I have heard” in previous downturns, he said. He has heard that prices might improve by the last quarter of the year, he said. But that could be too late for a lot of producers. People are already having trouble borrowing to put crops in. With declining milk prices and declining value for cows “farmers are losing equity,” he said. “If I was doing it for dollars and cents,” he said, “I would have shut the door a long time ago.”

Star photo by Julie Lewis

Carolyn and David Post take a break May 6 with their grandsons Daniel, 1, left, and Lance McClure, 2, as they talk with friend Jim Wood, center, who’s helping them with the construction of a new hay wagon at the family’s Pineyvale Farm on Town Brook Road in Hobart. To save on expenses the wood used in the construction wagon is from trees cut and milled on the farm.

Carolyn Post, dairy farmer “We’re struggling like everyone else is,” said Hobart dairy farmer Carolyn Post. “We’re trying to hang in there.” To do this, “we’re cutting down on a lot of things.” That includes cutting back on veterinarian visits, and planting cheaper corn seed. It also means cutting back on acreage planted, from 100 to 80. Planting crops with a no-till technique saves gas, she said. “We have also cut back on equipment purchases,” she said. For instance, the farm was going to buy a new hay wagon, but with prices almost doubled, “ we

Bob Tracy removes a motor for repair from the hay lift in the barn at his Golden Brook Farm on Briar Hill Road in East Springfield on May 6.

Springers Inc.

Star photo by Julie Lewis

will build our own,” she said. “That’s how we are doing it,” she said. “We’ve had ups and downs (in the past),” but this time is different because the whole country is going through this, she said. This is the worst she has seen it in the last 43 years. “I’m sure it will turn around but I’m not sure it will be enough. We’ll have to see,” she said. “We’re working as hard as we can, trying to keep our spirits up” she said. For instance, she noted, “There is always something to be thankful for,” whether that includes having food on the table or a roof over your head.

ic downturns in prices, he has equipment companies have diversified the product lines been offering low-interest The price that farmers re- sold over the years, he said. rates and/or deferred payment ceive for their milk is not afAbout 10 years ago, sales terms, he said. Companies such fected by the recession, said were 50 percent agricultural, as equipment manufacturer Jay Schuurman, president of while today it is about one- New Holland understand the Springers Inc., an industrial and agricultural equipment third, with construction and problems that farmers are havdealer with stores in Oneonta, other industrial equipment ing, he said, “(Farmers) don’t have conRichfield Springs and St. John- rounding out the product mix. While dairy farming is his “first trol over the price” that they resville. It has nothing to do with sup- love,” the changes reflect the ceive for the milk they produce, ply and demand but reflects declining number of farms in he said. That price before decommodity prices on the Chi- the county. That is one trend ductions was about $12 for 100 cago Mercantile Exchange, he that is not expected to change, pounds of milk in March. They he said. were getting about $6 more a said. In order to deal with periodBut to help farmers, many year ago. More farmers’ stories can be found on Page 10

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Tom Van Alstine, dairy farmer

The Van Alstine family’s Van Acres Farm on County Route 31 in East Springfield is seen on May 6.

As treasurer of the Van Hornesville feed cooperative, East Springfield dairy farmer Tom Van Alstine said even the good farmers are struggling in the current recession. His family has been on the farm since 1903. He has been running it since 1984 _ the fourth generation. He has three children and right now he has had a hard time encouraging them to go into farming because “you can’t make money,” he said. All three are smart kids that can make more money off the farm, he said. This was the first time that his wife has had to take a job off the farm to help make ends meet, he said. The farm milks about 70 cows, mostly Holsteins. This is the first time he has had to borrow money to make ends meet, he said. Since Dec. 1, he has been losing $167 per day, he said. People complain about what is going on, but no one is trying to find a solution, he said. “We have to change the way milk is priced,” he said. It’s been the same way since the 1930s. The current national dairy support program is helpful, but that only gives a percentage of what is needed. There is no doubt that people will be leaving at the current price level, he said. That contraction might eventually help but, “Its discouraging,” he said.

Star photo by Julie Lewis

Barbara Hanselman, dairy farmer Bloomville dairy farmer Barbara Hanselman said the impact of the recession is severe because, “what we are getting paid is less than it costs to produce.” She estimates that it costs at least $15 a hundredweight, with a variety of factors, such as amount of debt, causing for variations at other farms. Farmers are getting an average of about $12 a hundredweight before deductions are made. As a result, Hanselman said, farmers “are having to go without,” but they are trying to cut in places they normally wouldn’t to make it through this time. This includes cutting back on the amount of bedding for the animals. Her farm is able to cut back on the cost of feed by “getting better” at how animals are fed _ using less expensive feeds. She has also been able to cut back on the cost of tillage by changing the way crops are planted. Fertilizer use has also been reduced, she said. Although crop production may be less, if you don’t have the money to pay for it, “you have to make hard decisions,” she said. She has sold cows that aren’t producing enough. This will not only lower the cost of production, but puts some money in her pocket. Despite all these steps, she has had to borrow money to pay her bills. “You are putting on more debt to get through this,” she said. The cutbacks are affecting the local economy, she said. Changes over the years has led to a reduction in the farming infrastructure. “You see a lot more UPS” trucks making deliveries on the farm, she said.

Cornell Cooperative Extension Cornell Cooperative Extension of Delaware County Educator Mariane Kiraly said the global economy had been a big help in keeping dairy prices high last year. But that all started to change in November and December with the slowdown. Cooperative Extension is promoting a number of initiatives to help farmers get through the recession. “We are working one-on-one with people who need advice,” she said. There are about 155 active dairy farms in Delaware County; about half of them are getting some kind of advice, she said. This includes about 30 needing farm summaries, which provide a business plan needed to get a handle on the cost of production, she said. “We are making a game plan to help get them through this,” she said. This includes getting banks involved. “I’m finding that farmers have — Mariane Kiraly stopped spending,” she said, which hurts the entire economy. Even if farmers need equipment, many are looking to rent or borrow, she said. Another way farmers are being helped is through the promotion of no-till forage production. That is a one-equipment-pass system that helps to lower expenses by reducing fuel and labor costs. Another program involving about 40 farmers is precision feeding. This includes a complete analysis of what cows are eating to make sure there is not too much purchased grain _ the largest expense on a dairy farm. Beef prices are high and farmers can still get a good price for culled cows. As a price of about 50 cents a pound and the average weight of such animals at about 1,400 pounds, “that can pay some bills,” she said. She doesn’t expect prices to recover until August, she said. More farmers’ stories can be found on Page 11

`I’m finding that farmers have stopped spending.’

Star photo by Julie Lewis

Barb Hanselman feeds week-old brown Swiss calf Illy on May 13 in the barn at her family’s Del-Rose Farm on county Route 18 in South Kortright. In the background is family dog Sadie.

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May 30, 2009

Farmers

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Siobhan Griffin, organic dairy farmer Organic farmers haven’t seen as big a decrease in milk prices as conventional farms, said Siobhan Griffin, whose organic Milford farm milks about 80. But prices have decreased about a dollar a hundredweight with a base price of about $27 a hundredweight and another cut expected this spring. It could cut household income in half, she said. The milk is more expensive to produce than conventional because of such factors as feed prices, she said. This is the first time organic milk has gone down since she started in business about 20 years. This comes from slower sales because of the recession but also because of competing factory farms out west. One thing helping sales is with more families eating at home during the economic downturn, they tend to drink more milk, she said. She is also trying to sell more products at farmers’ markets “so I can get a retail price,” she said. This includes cheese and meats. She thinks this trend will “change the industry,” she said. Farmers’ markets are becoming stronger as more people try to keep their money local and get better value for their food dollar, she said. She is also cutting a planned equipment purchase, she said.

Siobhan Griffin plows `green manure’ at her Raindance Farm on county Route 35 in Milford on May 6. The green manure consists of field peas and triticale planted in the fall. Star photo by Julie Lewis

Don’s Dairy Supply Don’s Dairy Supply in South Kortright has been in operation for more than 25 years. “Anything that goes into a barn we install and supply” to 41 counties, said co-owner Don Coager. “I don’t want to cut back on staff,” he said of about the 17 people he employs. “It’s hard to find people.” So when there is no work he has personnel doing maintenance, such as painting. The average service call is about 2½ hours away, he said. “I’ve never seen it this bad,” he said. For the past two or three months there hasn’t been any business, but that has started — Don’s to turn around recently. Farmers aren’t calling unDairy Supply less there is an emergency. Evco-owner erybody had to borrow money to keep going, and his business Don Coager is no different, he said. In December the average account was 30-to-60 days past due. That has increased to 90 days, he said. “You have to be patient,” Coager said. He said he knows farmers are having a hard time, so he encourages them to make monthly payments so they don’t fall too far behind. “We will work with them,” he said. More farmers’ stories can be found on Page 12

`I’ve never seen it this bad.’

Star photo by Julie Lewis

Debbie Coager unpacks a shipment of parts at Don’s Dairy Supply on Roses Brook Road in South Kortright on May 13.

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Clifford Brunner, organic dairy farmer Cooperstown dairy farmer Clifford Brunner said he was fortunate that he switched his conventional dairy farm to organic about three years ago. This has kept the cut in prices he received to about a dollar a hundredweight, he said, as sales have dropped in the tighten-

ing economy. Although the base price is about $27 a hundredweight, no new producers are being taken on by the Organic Valley cooperative, he said. If sales don’t pick up, the moratorium could continue into next year. The price cut has had an impact on the 40-cow operation. He is dealing with it by prioritizing where he spends his money, he said.

The changes impact the whole economy, he said. “I won’t buy anything new,” he said, fixing what he has until the economy gets better. There is a concern that this will impact the infrastructure of the industry, he said. “We already have fewer equipment dealers,” he said.

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Star photo by Julie Lewis

A cow licks the face of Jeanne Licata of the Licata Dairy Farm as she sweeps the barn May 4 at her farm on Petkewec Road in Hartwick.

Jeanne Licata, dairy farmer “This is the worst period we have ever been through,” said Jeanne Licata, who has run a 100-cow farm in Hartwick with her husband for almost 30 years. With milk cost about $15 a hundredweight to produce and payments of about $12 before deductions, “the current system doesn’t make sense,” but she is not sure what the answer is. “Farmers have been tightening so much there are not a lot of places left,” she said. The national dairy

Danny Buel, dairy farmer With the recession going on, the current situation for Franklin dairy farmer Danny Buel is not great, but “a lot of people have it worse,” he said. Milk prices are lower than he has seen them for a while, he said. “We are survivors” and he is doing what he needs to in order to make it through the downturn. To do this, he has put off equipment purchases, he said. He also saved money when prices were higher in order to make it through the “low times,” he said. Prices for fertilizer and fuel, two of the biggest expenses at this time of year, are down, so that has been a help, he said. “I always try to look on the bright side,” he said. “It could be worse.” One of the advantages of being a small farm, milking about 50 Holsteins, he said, is that “we don’t have to hire help, so it’s easier when the times are tight.” “Hopefully this is the bottom and things will start looking better,” he said. There will be probably be more interest this year in a program run by farmers to buy cows in an effort to reduce the milk supply. He likes that it is run by farmers and doesn’t involve the government. There is not much else that can be done to reduce the supply, he said. The problem is made worse because the low prices come at a time when the whole economy is hurting. As a result, people are not eating out as much, which means that they are not eating as much cheese, he said. This is a big driver of milk prices because the product uses so much milk, he said.

support payments are not enough to really matter, she said. “We don’t want to sell,” she said about her family farm. “We want to farm as a long as we can.” But, “I don’t think people realize how grim it is,” she said. They have become too far removed from where their food comes, she said. “We have to borrow to stay in business,” she said. She added she hopes the situation turns around in the next few months. Like in any business the key word is cash flow, she said, and right now things are tight.

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May 30, 2009

The Daily Star, Oneonta, N.Y.

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Car dealers see good, bad in recession Brookside Hardware in Margaretville

By Tom Grace and Patricia Breakey Staff Writers

The automotive industry has been hit especially hard by the down economy. Here, some local car dealers tell the impact of the recession.

Royal Chrysler in Oneonta Steve Harris, president of Royal Chrysler in Oneonta, said that while the Chrysler has had well-publicized financial troubles, the vehicles the company makes are better than ever. ``It’s true, the cars and trucks these days are as good as any in the world, and it’s a good time for buyers,’’ Harris said. “Because the industry is trying to attract customers, the deals are better than ever. ``And if you buy General Motors or Chrysler vehicles, you’re getting a warranty backed by the federal government,’’ he noted. Harris said the used car business is very strong, as some people have opted for them rather than new cars. However, the rules of supply and demand dictate that eventually, the stronger used car market and higher used car prices, will spur new car sales, he said. ``As the trade-in value rises, this helps finance more of the new car price,’’ Harris said. Over the long term, as Chrysler plans to link up with the Italian automaker Fiat, Chrysler and its dealers will have access to Fiat’s efficient models. In the current economic climate, with gas at about $2.25 a gallon, efficiency is not driving sales to the same extent as a half year ago. But in the future, gas may rise again, giving Chrysler an advantage because it will be ready to sell a new line of efficient cars and trucks, he said. — Tom Grace

Star photo by Julie Lewis

Bob Carhart, sales manager of Oneonta Ford, sits in a Ford Mustang on the sales lot on Southside in Oneonta on May 7.

Oneonta Ford At Oneonta Ford, a combination of incentives and good products is drawing a steady stream of customers, according to Sales Manager Bob Carhart. ``There are incentives for buying hybrids, and Ford’s Fusion, which gets 41 miles per gallon, is a great option,’’ he said. Offers of large rebates or 0 percent financing also have helped attract newcar customers worried about their personal finances, he said. Carhart said tax deductions for buying new cars do spur the new-car business, although it’s used cars now that

are in greater demand. ``The market is very strong in used cars. We probably sell three times as many used cars as new,’’ he said. And new car sales are starting to benefit from higher used car values, because the used cars are worth more when traded in, he said. Customers are more comfortable with Ford than its domestic competitors because it hasn’t accepted government bailout money and is able to stand on its own, he said. ``Ford’s stock is rising,” he said, “and people know Ford is going to come out of this stronger than ever.’’ — Tom Grace

Flagpole Nissan in Oneonta Flagpole Nissan in Oneonta is doing well this year because it offers value _ something customers seek, recession or not, said General Sales Manager Jim Hickin. ``We sell a great vehicle and we have fantastic interest rates and rebates,’’ he said. The sales incentives help, but what really keeps the cars moving is Nissan’s reputation for making quality vehicles, he said. Hickin said that with General Motors and Chrysler having well-publicized financial troubles, some of their potential customers have come his way. ``Basically, it’s not a bad time to be a Nissan dealer,’’ he said. ``People know these are good vehicles and the company that makes them is sound. ``They can buy with confidence because they know Nissan is here to stay.’’ — Tom Grace

Star photo by Julie Lewis

Jim Hickin, general sales manager of Flagpole Nissan, stands with cars on the sales lot on state Route 23 in Southside Oneonta on May 11.

The downturn in the economy is a boon for the used car business, according to William Finch, owner of Brookside Hardware Ltd. in Margaretville. The business, which sells cars, feed, hardware and various types of equipment, is on state Route 28, across the street from Margaretville Memorial Hospital. Finch said used cars are a valuable commodity when people are watching what they spend. “You get more bang for your buck,” Finch said. “Business is right on track and we are cranking them out. You save a lot on a good quality used car.” Finch said new cars depreciate as soon as they are driven off the car lot, which means used cars have already taken that first big hit in losing value, so the prices are much more reasonable. Finch said the only effects he has seen from the recession are the credit challenges people are facing. “Some people are having a little more trouble getting a loan,” Finch conceded. The types of vehicles people are looking for don’t seem to be driven by money concerns, he said. “A year ago is was all about gas mileage, but now there are no concerns about gas price,” he said. “The truck and SUV business has been strong.” With American car companies facing huge financial stresses of their own and some brands being eliminated, Finch said people don’t seem to be worried about future repairs. “I have yet to hear any concerns about avoiding certain brands,” Finch added. Finch said he has been in the used-car business 27 years and he expected to see a slowdown, but he has not seen it yet. “Business is good, and I think it will stay that way,” Finch said. “People are spending more conservatively and they are looking for value.” — Patricia Breakey More auto dealers’ stories can be found on Page 14

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Breakey Motors in Walton

County Club Kia and Country Club Mitsubishi in Oneonta

Country Club Kia and Country Club Mitsubishi in Oneonta are having a strong spring, according to co-owner Scott Davis. ``We’re having a sale through May 23 called, `Why buy used?’ and it’s been popular,’’ said Davis earlier this month. A combination of high prices for used cars and manufacturers’ incentives for buying new models makes this a good time to buy a new car, Davis said. ``We have tremendous rebates now. For instance, on a brand-new 2009 Kia Spectra, there are rebates of up to $3,000,’’ he said. ``We can get that payment down as low as $165 a month for 66 months.’’ Kia, a firm which is increasing its American market share, is offering other deals, as well, including 0 percent financing, he noted. Star photo by Julie Lewis The incentives have led to newcar prices that raise eyebrows, Scott Davis, CEO of the Country Club Automotive Group, stands on the Country Club Mitsubishi/Kia lot on Oneida Street in Oneonta on May 11. In the background are Davis said. ``A new Sportage has an MSRP vehicles at Country Club Motors across the street. (manufacturer’s suggested retail ers are offering similar programs in an for $14,615, he said. price) of $18,465. With discount re``With programs like that,” he said, bates, you can take $3,500 off that, so you effort to keep customers coming in, and “we’ve been doing well with both our can get a brand new Sportage, starting the programs are working, he said. For example, a Mitsubishi Lancer import and domestic lines.’’ at $14,965.’’ — Tom Grace Mitsubishi and domestic manufactur- that’s listed at $17,116 can be purchased

Skinner-Damulis Inc. in Richfield Springs Skinner-Damulis Inc. of Richfield Springs has been in business for decades, following a philosophy of taking care of the customer, a formula that still works, said Dan LaBarge, general sales manager. ``This business was started by Hiram Skinner in the 1940s and he’s still the president, comes to work every day,’’ he said. Part of Skinner’s credo is to treat customers well, no matter what. ``We rely on repeat customers and they keep coming back because they get the products and the service they want,’’ he said. In recent months, the firm has been helped with an incentive from Chrysler that allowed all customers to receive the same pricing as Chrysler employees, as well as a 0 percent interest-rate

Star photo by Mark Boshnack

Dan LaBarge, general sales manager of Skinner-Damulis, stands with some of the cars on the sales lot at the dealership on U.S. Route 20 in Richfield Springs on May 4. program instituted by Ford, he said. The incentives from the manufacturers help, but

more important is selling well-made vehicles at a good price in a nonpressured atmosphere.

``Our customers keep coming back,” he said, “I’m happy to say.’’ — Tom Grace

The new-car business is feeling the pressure of the recession, but used cars are still moving at Breakey Motors in Walton. “It’s been very slow, very quiet,” Keath Davis, owner of Breakey Motors in Walton, said. “There is more interest in used cars although there is some interest in new. It all boils down to dollars and cents.” Davis said business is down 30 to 40 percent. “Thank God for used and program cars,” he said. “That’s what has been selling and keeping us going.” Davis said buyers are asking “what kind of payment and what can I afford?” Davis said it has been a buyer’s market in the new-car business. “Ford is offering 0 percent financing for qualified buyers and all car companies are trying to boost sales with deals,” he said. “People have had to make adjustments. Credit cards are just killing us.” Credit at banks is very tight, Davis added. “Credit scores are really important. Banks are looking for bigger down payments and they have shortened up the length of the loans,” he said. Davis said when the price of gas went down, it helped with consumer confidence, but now the concerns have resurfaced because of the economy. “The person that needs a truck or bigger vehicle is going to buy one,” he said. Davis, who sells Fords, said American-made car sales have been hurt in the last five to 10 years by the national news media. “The American auto industry has been crucified by the media, which has literally promoted imports,” Davis said, adding that the quality has improved in American cars tremendously. “A few years ago Ford was advertising ‘Have you driven a Ford lately?’ Davis said. “If you do drive a Ford, you will realize that quality wise, Ford has improved so much.” Maintenance and repairs are a vital part of a dealerships income stream and that has also been hit hard by money concerns. “People are only fixing cars enough to keep them going,” he said. “They don’t know what the future is going to be and they don’t want to spend a lot and then have to trade or lose their vehicle.” — Patricia Breakey More auto dealers’ stories can be found on Page 15

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Gary Enck’s Car Store in Hartwick Seminary

Star photo by Julie Lewis

Gary Enck, president of Gary Enck’s Car Store Inc., stands next to a 2009 Corvette on the sales lot at the dealership on state Route 28 in Hartwick Seminary on May 1.

Local car dealers say customers typically look for value, and that’s what they’ll find on car lots now, according to Gary Enck. ``I’ve been in this business for 40 years and I’ve never seen a time like this before,’’ said Enck, whose Car Store is just south of Cooperstown. ``The product is better than ever and, with General Motors, the warranties are backed by the government,’’ he said. ``So if you’re looking for peace of mind and a great value, now’s the time to buy.’’ Even in a recession, people need cars, and central New York has been spared the worst of the downturn, he noted. ``We are a little isolated here,’’ said Enck, who sells Chevrolets and other GM brands. ``The downturn has hurt some people, of course. It’s hit pensions and that may mean someone has to work a few more years.’’ Still, workers usually have to drive, and new cars are more efficient and problem-free than their predecessors. And with used cars bringing a premium now, a steady stream of buyers has continued through the doors, he said. ``I’d say we’re seeing fewer lookers,” he said, “but just as many buyers.’’ — Tom Grace

Five Star Subaru in Oneonta

Smith Cooperstown Inc.

What recession? Five Star Subaru in Oneonta had its best sales month ever in March this year, ``and we might break that record in April,’’ Ben Guenther, an owner, said late in the month. ``Basically, I don’t think this area is in recession like the rest of the country,’’ he said. ``We don’t have the wild swings other places have.’’ At Five Star Subaru, business has been good because the vehicles he sells are a good value, and potential customers realize this, Guenther said. ``We have educated customers and they know what they want,’’ he said. Despite gloomy news from the government and the media, many people are still fully employed or able to afford what they need, which includes efficient reliable vehicles, Guenther said. ``I’m optimistic because people are looking for value,” he said, “and we offer that.’’ — Tom Grace

Star photo by Julie Lewis

Ben Guenther, co-owner of Five Star Subaru, stands next to a new car outside the dealership on Chestnut Street in Oneonta on April 30.

W.S. Hinkley & Sons Inc. in Grand Gorge Sales are down at the W.S. Hinkley & Sons Inc. Ford dealership in Grand Gorge, but Ed Hinkley has faith that things will turn around if everyone can hold on. “I’ve been here for 37 years and it’s actually worse than I have ever seen it,” Hinkley said. “It was worse in the Depression, but back then people weren’t used to having a lot so it’s a lot harder on people now.” Hinkley said dealers have been hit hard because cars last longer than they used to and the only people buying right now are the ones whose cars break down and are too expensive to fix. “Nobody is buying a new car just because they want to,” he said. “It’s really not a good situation but somehow, we have got to get through it.” Hinkley said he had a unique experience when a man who was approved for a loan to buy a new car decided to buy two used cars for the same price. “People are thinking and being careful,” Hinkley said. “Now this man has a car to fall back on if something happens to one of them, or he has a winter car and a summer car, or the family has two cars.” Hinkley said people are definitely looking at used cars more than they used to, which is making used cars a higher price commodity.

“When you aren’t selling new cars, you aren’t taking used cars in on trade, so good used cars are getting harder to come by and the prices are going up,” he said. Hinkley said he is also seeing different forms of financing. “People are coming in with money from home equity loans and some are getting out of the stock market and using that money to buy cars rather than taking a loan,” he said. Young buyers are having a really rough time getting their first cars, Hinkley added. “It’s real tough for young buyers to qualify for a loan unless they have a parent or someone to co-sign,” he said. Hinkley said he feels that American car companies lived off their names for too long and didn’t keep up with trends and improvements when foreign cars began to take over the market, but he said the quality has improved dramatically in recent years. “Ford has excellent cars available right now,” he said. “The Focus, the Fusion and the Escapes are all great cars.” Hinkley said Ford also has quite a few hybrids available, but added that they are a tough sell in the mountainous terrain of Delaware County. “Hybrids are really made for city driving,” he added. “They just don’t save any money in this kind of territory.” — Patricia Breakey

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Smith Cooperstown Inc.’s general manager, Mike Welch, said the Ford dealer is conducting business as usual in 2009, placing customers first. ``We take care of people and they keep coming back,’’ he said. Even in a recession, this formula pays dividends, ``We haven’t let anyone go and we’re going to be fine. I think that dealers that get through this period will be in good shape, able to make money,’’ he said. “`Ford has a lot of excellent products and people want them, but the media has scared them, to an extent,” he said. “People know what they want, and they have the money to buy it, but some of them are holding back for a year or so because of what they hear on the news.” However, the new cars are better than ever, and demand, pent up now, will fuel car sales after most people believe the economy is heating up, perhaps later this year, he said. In the meantime, others are taking advantage of incentives and very competitive pricing to buy now, he said. — Tom Grace

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May 30, 2009

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17

Bassett, Fox seeing fewer patients Economy causing many to delay seeking health care, officials say By Denise Richardson Staff Writer A national trend of patients deferring health care is reflected in hospitals and medical offices in Otsego County, local administrators said. The recession has meant patients think twice about elective care or making trips to an emergency room, administrators at A.O. Fox Memorial Hospital in Oneonta and at Bassett Healthcare based in Cooperstown said. Delaying treatment has a negative impact on revenues for hospitals and health care networks, which rely on income and reimbursements for providing services, they said. ``Our revenue is all driven off some sort of patient encounter,’’ said Mark Wright, vice president for finance at Fox Hospital. ``This is unlike anything we’ve seen in the last 25 years.’’ Fox Hospital and Bassett Healthcare wrestled with the shift in patient care starting

last year, administrators said. The recession started in December 2007, and administrators said the effects of the tumultuous economy also show up in government funding and reimbursement rates. ``We’re OK at the moment,’’ said Dr. William Streck, chief executive officer at Bassett Healthcare. ``But there are no guarantees in this environStreck ment.’’ Streck said the single-most important opportunity is talks with Fox Hospital. The two institutions announced in March that talks started last year about sharing services had intensified. Representatives continue consider ways to maximize medical care options and services locally, avoid duplication of services and enhance treatment.

Star file photo by Julie Lewis

The A.O. Fox Memorial Hospital on Main Street in Oneonta is seen in April 2008. They have begun sharing orthopedic care services, and the organizations are looking at sharing cancer and cardiac care and information technol-

ogy, administrators said. Other options may evolve. ``In the current climate, hospitals need to be creative in establishing ways to continue to provide quality care to their patients without increasing costs,’’ Alisha Barbera, director of quality management services, said. ``Our discussions with Bassett are one example of such opportunities.’’ Fox had a 100-bed hospital, a 131-bed nursing home, family practice offices and other services at the FoxCare Center. Fox has 886 employees, Wright said. Bassett Healthcare, a system that includes four affiliated hospitals and its flagship hospital in Cooperstown, has 3,045 employees, an annual operating budget of $336 million, and 312 doctors, including dentists and residents. Conversations between the two institutions have been held in years past, but current talks are fueled by economic turmoil, the cost of heath care and

insurance issues, a national physician shortage and difficulty recruiting doctors to rural areas. Nationally, as fewer patients seek hospital care, a growing number need help paying for treatment, the American Hospital Association said in a report released in November. Rising unemployment has meant more Americans are without employer-sponsored insurance. As a result, more patients are unable to pay for care or are eligible for Medicaid, the association said, resulting in hospitals providing more charity care or listing more bad debt. With tighter financial conditions, the AHA said, 56 percent of hospitals responding to surveys said they are postponing renovations or plans to increase capacity; 45 percent are delaying purchases of clinical technology; and 39 percent are delaying investments in information technology. See HOSPITALS on Page 19

The Mary Imogene Bassett Hospital clinic building, on River Street in Cooperstown, is seen in April 2008. Star file photo by Julie Lewis

18

Opportunity

The Daily Star, Oneonta, N.Y.

May 30, 2009

MMH doesn’t foresee layoffs

Director: Tri-Town on target

CEO: We’ll wait on purchases

Sidney hospital bucking fewer-patient trend, Bassett officials say

Staff Report

By Denise Richardson Staff Writer The Tri-Town Regional Hospital in Sidney was born in 2008 and is doing well, according to its medical director who also serves as its chief administrator. Dr. Marianne Soden, chief executive officer, said a key to success for the Tri-Town Regional Hospital is developing its niche. Bassett Healthcare opened Tri-Town Regional Hospital in February last year. The facility is at the 43 Pearl St. site of The Hospital in Sidney, which closed in July 2005 because the community couldn’t support a full-service hospital. Bassett leases space for its hospital from the town of Sidney, which owned The Hospital. Tri-Town Regional Hospital offers emergency care, laboratory and radiology services. Soden said the hospital has 65 on staff, including doctors, nurses and technicians. The reopening of a hospital in Sidney counters the trend in health care of downsizing or closing hospitals, said Bassett officials, who said the model fits needs in the community, particularly for an emergency department. Soden said after The Hospital closed, some patients weren’t receiving health care or were going out of town for treatment. ``We’ve been seeing a blossoming of patients using our services,’’ Soden said. ``We may be small, but we’re tall.’’ See TRI-TOWN on Page 19

Star file photo

Tri-Town Regional Hospital in Sidney is seen in May 2008.

Edmond Morache, chief executive officer at Margaretville Memorial Hospital, said Medicaid funding is the largest budget issue for the healthcare provider and nursing home in the recession and continuing economic uncertainties. The hospital doesn’t anticipate any layoffs and will probably delay capital purchases, Morache said, but reactions to economic factors won’t negatively affect patient care. For example, the hospital has a mammography machine, and a delay might be in purchasing a machine that can take digital photographs, he said. MMH is a 15-bed critical access hospital off state Route 28 in the town of Middletown in Delaware County. Mountainside Residential Care Center, affiliated with the hospital, is at the foot of Patatakan Mountain and has 82 beds. The home opened May 1994 to provide 24-hour skilled nursing services. See MMH on Page 19

DVH thriving, official says By Denise Richardson Staff Writer

Star file photo

O’Connor Hospital in Delhi is seen in May 2008.

Economy affecting O’Connor little By Denise Richardson Staff Writer O’Connor Hospital has upgraded patient beds, radiology equipment and medical records capability and expanded parking space, said Dan Ayers, chief executive officer and administrator of the Delhi facility. The improvements put the hospital in a good position to weather current economic turmoil, said Ayers, who joined the hospital five years ago.

``We’ve had positive bottom lines and been able to reinvest,’’ Ayers said. As a 25-bed critical access hospital, O’Connor provides acute and preventative health-care services. O’Connor Hospital, which is affiliated with Bassett Healthcare in Cooperstown, has an annual budget of about $17 million and about 140 employees, Ayers said. The hospital on Andes Road had about 400 patient admissions in 2008, he said, and treatments at

outpatient clinics and surgical cases have increased, he said. With the recession, the hospital has been honing its focus on serving the community, Ayers said. Services such as occupational health programs with employers, considering a contract with a local nursing home and identifying individuals who aren’t receiving care are among ways the hospital is reaching out and enhancing treatment opportunities and services, he said. See O’CONNOR on Page 19

Delaware Valley Hospital, a 25-bed hospital in Walton with three family care centers, is in good condition and has a positive prognosis, an administrator said earlier this month. Dotti Kruppo, vice president of community services, attributed DVH’s good financial picture to frugality, hard work by staff, changes in patient services and community support. The hospital struggled previously, she said, until about three years ago, when fiscal practices and some changes resulted in a turnaround. DVH gave up its obstetrics services in 2003, which resulted in savings, Kruppo said, and the hospital became a critical access facility. DVH has an annual budget of about $16 million, Kruppo said, and last year, the hospital had a gain of $1.6 million. The first quarter of Kruppo this year also had positive results, she said. After projecting a $20,000 loss, the hospital had an operating gain of $427,000. ``We’re doing well financially,’’ Kruppo said. ``We are very fortunate.’’ The recent results are because staffers have done a ``phenomenal job’’ controlling costs by monitoring overtime, watching spending and maximizing reimbursements, Kruppo said. Delaware Valley Hospital opened as an acute care facility in November 1951. When DVH became a critical access hospital n 2005, reimbursement rates for treating Medicare and Medicaid patients increased, which made a significant difference for the hospital’s financial picture, she said. DVH employs 225 people, including five physicians, Kruppo said. Other doctors have privileges at the hospital. As an affiliate of United Health Services in Binghamton, DVH can refer patients to more than 450 specialists. See DVH on Page 19

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Opportunity

May 30, 2009

The Daily Star, Oneonta, N.Y.

19

MMH Continued from Page 18 Margaretville Family Health Center and Roxbury Family Health Center are extensions of MMH. Morache said the family health centers are seeing fewer patients, probably because patients cannot make the co-payments for treatment. Charitable care provided by the hospital remained stable last year, but if the continues in turmoil this year, demand may increase, he said. Morache refused to give budget specifics for the hospital. ``We are operating as efficiently as we possibly can,’’ he said. Officials from Benedictine Hospital, The

Kingston Hospital and Margaretville Memorial Hospital announced in September 2007 the creation of Health Alliance Planning Inc., a not-forprofit parent corporation. Health Alliance Planning manages an integrated healthcare delivery system throughout Ulster and Delaware counties, including inpatient and outpatient facilities in Kingston, Margaretville, Saugerties and Roxbury. Morache said the alliance will create more efficiencies through sharing human services resources, information technology and other cost-saving measures. ``We always are making contingency plans,’’ he said.

The Margaretville Memorial Hospital on state Route 28 in Margaretville is seen in May 2008.

Star photo by Julie Lewis

DVH

Star file photo by Brit Worgan

The outside of Delaware Valley Hospital is seen in Walton in May 2008.

Tri-Town

Continued from Page 18 turmoil is expected to be The hospital serves seen in the emergency the Sidney, Bainbridge room the most. Many unand Unadilla region and employed or laid off resicouldn’t be in any better dents may seek primary position to serve a rural medical care through the area, Soden said. At the emergency room, officials hospital, a patient in an said. In the past year, Sidney emergency situation can manufacturers Amphenol be stabilized, then transferred via Interstate 88 or and MeadWestvaco have picked up for air trans- laid off workers and cut portation at the Thomas jobs. Soden said Tri-Town Z. Fagan Sidney MuniciHospital is ready to meet pal Airport in Sidney, she patient needs. The hossaid. pital’s model of Tri-Town Rekeeping patients gional Hospital for 23 or fewer is open 24 hours hours, then senda day, seven days ing them home, a week for emeris gaining more gency care and is acceptance as it licensed for four keeps more peobeds. The emerple in the comgency departmunity and inment can treat creases patient six patients at satisfaction, Soden a time and hold Soden said. some patients The hospital for observation also offers some services and treatment. Through at night, for instance ratelemedicine connections diology services, which with neurologists in Coo- Soden said is a benefit perstown, physicians can for patients who cannot provide assessment and manage an appointment treatment of stroke pa- during regular business tients. hours. The hospital’s labIn 2008, Tri-Town oratory and radiology deRegional Hospital saw partments are open to the 10,000 patients and is on public for appointments. track for meeting its 2009 Among connections in goal, Soden said. The hos- the Bassett Healthcare pital’s budget also is on affiliation are services target, she said, and the offered at Bassett Healthrecession has meant addi- care Sidney Primary Care, tional emphasis watching at 39 Pearl St., and Bassett expenses. But otherwise, Healthcare Unadilla at 16 the impact of economic Clifton St. in Unadilla.

O’Connor

Continued from Page 18 said. Other improvements Primary care is being re-emphasized because include developing electronic medical records, it is more costadding upgraded effective in the patient beds and long run, Ayers a ``complete digisaid. tal format’’ that And the hospiincludes ultratal also is worksound, mammoging to meet comraphy, CT scanner munity demands and radiology, he for more physisaid. The technocians and buildlogical upgrades ing on its range provide greater of specialty serdiagnostic cavices, he said. Ayers pability and can O’Connor is send information continuing with equipment and capital and images electronically projects, including the to physicians at different recent addition of about sites. ``We’ve been fortu45 parking spaces, an improvement that points to nate,’’ Ayers said. ``We the role of the hospital as have a really good story an ambulatory site, Ayers to tell.’’

Hospitals

Continued from Page 17 wage freeze, It is also not The recession also has using investment income a broader effect on hos- for operating expenses. pitals’ impact in local Demand has increased on economies, the AHA said, Bassett’s financial services group, a situation that because each is continuing, he dollar spent by a said. hospital supports At Fox Hosmore than $2 of pital, economic additional busiconditions have ness activity in a meant no wage community. increases were At Bassett, given during the the recession first two quarhas resulted in ters of this year, postponement of Wright said. Fox projects such as also put a hold Wright hospital renovaon opening a famtions and finding ily practice in the more office space, West End of Oneonta at Streck said. The economy the former Ames Plaza, a makes expanding services, project he said was tied to such as meeting demand the hospital’s investment for more school-based portfolio. health centers, more difHowever, both instificult, he said. tutions have invested in ``The recession is limit- information technology, ing our ability to do more which is designed to profor the region,’’ Streck vide improved and more said. ``This is an uncertain efficient patient care. Fox Hospital’s total time.’’ Streck said Bassett budget of $82 million in doesn’t have a hiring or 2009 is up about 3 per-

Continued from Page 18 The recession and economic turmoil have been a reminder, she said, that DVH cannot rest on its laurels. For example, DVH projects a cut of about $105,000 from state budget funding, Kruppo said, and as at other health-care facilities, some patients are delaying care based on economic factors, including costs and insurance copays. DVH staffers continue keeping a handle on expenses, Kruppo said, and openings are scrutinized before filling. For example, a nurse who left hasn’t been replaced because demand has decreased, she said. Last year, DVH opened its renovated emergency room, part of a $7.5 million project, the largest renovation and construction project DVH has undertaken in recent years. The hospital also has new diagnostic imaging equip-

ment. The hospital recently completed its annual phone-a-thon, which usually raises about $20,000, and money will be used to upgrade to digital mammography equipment. DVH has family health centers in Walton, Downsville and Roscoe. In July, a walk-in treatment office opened at the Walton Family Health Center. With about 18 patients seen each day, the clinic is meeting a need for treatment on short notice, Kruppo said. Kruppo said the renovated emergency room, the technological upgrades of equipment and other improvements better serve the community, which seems to have noticed. ``We’ve seen some renewed interest in the hospital,’’ Kruppo said ``We are growing in ways that serve the patient. We’re just growing in the right way.’’

cent from 2008 because of added services, including the practice in Sidney, Wright said. The hospital has campaigns to seek patients because the number of visits are down at family practices, he said. Fox has 886 employees in full- and part-time jobs, Wright said, but the number of full-time equivalent positions has declined to 750 from 780 last year. Fox’s investment portfolio dropped 17 percent in 2008, Wright said. The investment earnings were used for general operating expenses and capital proj-

ects, he said, and the hospital is delaying capital replacements that aren’t ``mission critical.’’ Fox implemented a ``soft hiring freeze’’ in the middle of 2008, which means employees are hired as needed and openings are scrutinized to determine if there are options for providing services, Wright said. An increase in patient volume in February and March prompts hope for more business, he said. ``We’re optimistic that we’re seeing a little bit of an upturn,’’ Wright said.

20

The Daily Star, Oneonta, N.Y.

Opportunity

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May 30, 2009

Opportunity

May 30, 2009

The Daily Star, Oneonta, N.Y.

21

Local real estate market doing OK Area somewhat isolated from large swings, local agents say By Mark Boshnack and Patricia Breakey Staff Writers

The recession is hitting the local real estate market, but those in the field say it could be much worse. Overall numbers are down, but the new firsttime home-buyer tax credit of up to $8,000 may

help spur the industry, they said. The two large hospitals and four smaller ones, and the three colleges in Otsego and Delaware counties have helped keep the market even, in general. Here, area real estate professionals tell about the impact the down economy has had locally:

The Benson Agency in Oneonta Otsego County is a little insulated when it comes to the economy’s impact on the residential housing market, said a Benson Real Estate Agency broker/owner, Betsy Shultis. “We don’t get the high ups or the low downs,” she said. With prices in the Multiple Listing Service area that covers Otsego County and surrounding counties, being relatively stable for the past several years, “our average price in the Oneonta City School District has actually increased in the current economy,” she said. The reason for that increase includes a number of people with higher-priced properties who are moving to a recently opened active adult community, she said. “The number of units may be down but the properties are selling,” she said. One thing that has been impacted by the recession is the morale of the buyers and sellers, she said. “We have to overcome all the doom and gloom,” she said. “They believe what they hear (from the media) so they are more tentative.” Because of that, it’s important to get the word out, especially to the first-time home buyer, so they can take advantage of the low interest rates and first-time home buyer tax credits. It applies to those who haven’t owned a primary residence in the past three years. The brokerage is utilizing a number of specialized websites to promote business, she said. It’s an easier way for people to get started searching for a property, she said. They can get an overview and then call the real estate agent, she said. The firm has also participated in a recent home show. There are some issues affecting the business because of the economy. It’s tougher to get financing, because of all the problems facing the banking industry, but it is happening, she said.

Contributed photo

Dick Cavanagh and Kathy Wright of ERA Cavanagh-Wright Real Estate

ERA Cavanagh-Wright in Oneonta

Star photo by Julie Lewis

Betsy Shultis of the Benson Real Estate Agency stands at a property the agency has listed on Walnut Street in Oneonta on April 29. Maybe you have to put a little more down or have a better credit score than in the past, but the chang-

es being made will be better for the economy, she said. — Mark Boshnack

The effects of the national recession “trickle down” to the local area, but not in a big way, said Dick Cavanagh, an broker/partner at ERA Cavanagh-Wright Real Estate. Because of the relatively stable health and education sectors, “it helps cushion the area from the precipitous drops that have hit other areas around the country.” For example, he said that for the period from Nov. 1, 2008, to April 21, 2009, there were 145 residential sales in the multiple listing region that includes parts of Otsego County, including the town and city of Oneonta, and parts of Delaware County. This compares to 172 for the same period the year before, he said. “That’s not too bad when you consider the rest of the country,” he said. The total of residential properties either sold or pending is where it was last year, he said. He did not want to give that number for confidentiality reasons. In order to encourage sales, he is counseling buyers and sellers about situation. “We are targeting first-time home buyers” in a seminar to let them know now is the time to invest with stimulus and rates low, he said. “Interest rates are as low as I have seen since I started in real estate in 1990,” he said. The first-time home-buyer tax credit being provided under the federal stimulus plan can be as much as $8,000, for those who qualify, he said. Buyers should be working with a local mortgage counselor and getting prequalified, he said. — Mark Boshnack More from local real estate agents can be found on Page 22

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22

The Daily Star, Oneonta, N.Y.

Opportunity

May 30, 2009

Real estate Country Boy in Worcester

Star photo by Julie Lewis

John Turner, assistant broker at Country Boy Realty, stands next to a for sale sign at a property on Up County Road in the town of Westford on April 29.

Bear Spring Realty in Walton

there who are looking to buy,” she said. Leone noted that President Obama’s stimulus package has an $8,000 first-time homeReal estate sales may have bottomed out buyer tax credit that should be a real incenin most of the nation, but the locally people tive to people who are considering buying a house. are still buying. “It’s a good time to sell Anita Leone, owner of and interest rates are at an Bear Spring Realty in Walall time low,” she said. “Most ton, said this is the best time interest rates are hovering to buy, and real estate is the around 5.25 percent and with best place to put your money a good credit score they can right now. be as low as 4.75 percent.” “Prices are lower than Leone said real estate they were and interest rates agents help buyers set a are low,” Leone said. “If you reasonable price by doing want to sell, there are people a market analysis to deterwith money looking for the mine what the market can best place to put it.” bear based on comparable Leone said the inflated sales. prices of recent years have “People don’t have to dropped to more-reasonable worry about selling too low,” levels. she said. “We will help them “The deals out there are phenomenal,” she said. “The — Anita Leone, determine a fair price.” Leone said she has been prices were insane at one owner of Bear Spring in real estate for a long time time, but now people are beRealty in Walton and has seen the market go ing more realistic.” up and down several times. Leone said her agency “I’ve been in a bad marwould love to get more listket before, but it’s cyclical. It will come back ings. “People may be feeling that this isn’t the around,” she said. “It’s still a good time to time to sell, but there are savvy people out sell and a great time to buy.” — Patricia Breakey

`The deals out there are phenomenal. The prices were insane at one time, but now people are being more realistic.’

“I’m very optimistic that things will get better,” said John Turner, associate broker at Country Boy Realty Inc. in Worcester. He has been selling real estate since 1974. He said about the impact of the recession on residential property in Otsego County, “I’ve see it worse.” Properties have been selling through the winter, though the pace was a little less than normal, he said. “Its not booming,” he said, but there are lots of calls. The situation is similar to what it was about a year ago, he said. The buyers include a lot of young people, he said, or people moving from the country to the village or into a different size home. There are some downstaters buying a second home, but that can be a little slow right now, because those houses aren’t selling as fast, he said. The brokerage is dealing with the situation by making sure that buyers know there is money available, he said. “I don’t believe people are aware banks are willing to loan,” he said. “Your credit score has to be a little better than before,” he said. But the rates are low. To illustrate that he said he was working on a recent deal with an interest rate of 4.2 percent, he said. There are also tax advantages, mostly for first-time buyers, he said. “I don’t think the media is making people aware of the situation,” he said. When the television news reports about “how bad things are, it seems people hold back,” he said. “It makes matters worse.” — Mark Boshnack

Country Pride Realty in Roxbury

ing loans. “The biggest difference is in being able to obtain financing,” Real estates sales have slowed he said. “People are looking for down a little, but have not stopped reasonably priced property. Propin the Roxbury area, according to erties that are overpriced are just sitting.” Joe Aulino, broker at Aulino said he is Country Pride Realty seeing a flow of peoin Roxbury. ple who were waiting “There has been for a buying opportua little bit of a slownity. down, but certainly “There are some not to the extent other good opportunities parts of the country right now, and comhave seen,” Aulino bined with low insaid. “In this part of terest rates, there upstate, all things — Joe Aulino, are buyers out there considered, things and buying,” aren’t bad.” broker at Country looking he added. Aulino said he is Pride Realty Sellers are realstill seeing a good izing the prices of amount of people who are interested in buying, but ad- three or four years ago are just not mits that traffic has slowed a bit there anymore, so they are adjustbecause people are more hesitant ing their prices to a more reasonabout making a big purchase or are able level, Aulino said. Aulino said people should not waiting to see if prices continue to be hesitating to list properties bego down. Getting the money to make the cause there are still buyers who purchase is one of the biggest are interested in second homes in stumbling blocks, with banks be- Delaware County. — Patricia Breakey ing much more careful about makMore from local real estate agents can be found on Page 23

`... all things considered, things aren’t bad.’

May 30, 2009

Opportunity

The Daily Star, Oneonta, N.Y.

23

Real estate Frank Lumia Real Estate Plus in Delhi

Prudential Fox in Oneonta and Cooperstown With offices in Oneonta and Cooperstown, Joan Fox, a broker/owner at Prudential Fox Properties said “we’re definitely selling property.” But, because of the recession, the marketing time for homes has increased since last year. Where typically it took three to six months to sell a house, it can now take six months or longer in Oneonta and can take up to 12 months in Otsego County. “We’re seeing more people coming into the area who want to buy but may be having trouble,” she said. This could be either because their own property hasn’t sold or they are in financial distress because of the economy. “We are helping these buyers find rentals,” she said. The firm is also working with sellers to find “creative solutions” to marketing properties such as lease-purchase with a qualified buyer. Historically low interest rates are definitely helping the situation, she said. She was working with a buyer who has 4.5 percent for 30-year fixed mortgage. The rule of thumb was that if you could get mortgage under 9 percent, that was good, she said. A first-time home-buyer tax credit through the federal government is also available for those who purchase before the end of 2009. For someone who hasn’t owned a primary residence in three years, “it’s a pretty good incentive,” Fox said. There are a smaller buyer pool of buyers and more properties are coming on the market, she said. Because of this, “we are doing more open houses and first-time home-buyers seminars.” Barbara Roberts, who is also a broker/ Roberts owner at firm, said when analyzing the sales in Otsego County and Cooperstown, which is not included in the Multiple Listing Service numbers, it’s “pretty clear” that fewer houses are selling at lower prices and taking longer to sell, but the situation is better than the overall national picture, she said. The prices for the period from Nov. 1, 2007, to April 21, 2008, average selling price in the Oneonta school district declined 9.5 percent to $150,600. The days on the market increased by 15 percent, to 169 days. The number of houses sold declined 26.9 percent to 38. In Otsego County for that time overall, the declines were: houses sold, 22.5 percent to 117; average selling price, 1.5 per-

Real estate in Delaware County continues to sell despite the problems the real estate market has experienced in other parts of the country, according to Frank Lumia of Real Estate Plus in Delhi. Lumia said there is money available to qualified buyers and property prices are at realistic levels. “Loans are still available and price guidelines are being enforced,” Lumia said. “Appraisers are doing their jobs more diligently and buyers are making adjustments.” Lumia said much of the business he is seeing is from second-home buyers who are looking for specifics, like an old farmhouse or property bordering state land. “Real estate is regionally directed,” Lumia said. “Sales are still going on here.” Lumia said the first-time home-buyer incentive included in President Obama’s stimulus package has also prompted people to consider buying houses. “First-time home-buyers are flexible,” he said. “They — Frank Lumia know they are buying a first of Real Estate Plus home that will in Delhi probably not be their home forever, so they are looking at smaller, less-expensive properties.” Lumia noted that one of the biggest effects the recession is having on the real estate market is the way it affects the people in the real estate business. “A lot of people fall out of the business and give up their real estate licenses,” he said. “A great salesperson makes opportunities and makes sure buyers are qualified before he spends time showing properties they can’t buy. “A good broker has a higher closing ratio and can survive this kind of a market,” he added. Lumia said buyers and sellers should be taking the time to make sure they are working with a real estate agent who belongs to a multiple listing service so they have access to all of the people who may be interested in selling their property and all of the real estate agents who may have interested buyers. “It’s not an advantage to a seller or a buyer to work with a Realtor who just has in-house listings,” Lumia said. — Patricia Breakey

`Real estate is regionally directed. Sales are still going on here.’

Star photo by Julie Lewis

Joan Fox, owner/broker of Prudential Fox Realty, right, stands with client Beth Orgeron at Orgeron’s recently purchased home on Oneonta on May 1. cent to $169,150; and days on market, 5.1 percent to 169. By comparison, in the Northeast, the median existing single family home price declined 15.9 percent to $235,000 for the first quarter of 2009 as compared to last year, according to the National Association of Realtors.

While prices for houses $150,000 and under have been relatively stable, a decline in the sale of higher end properties is causing a decline in the overall numbers. This is particularly clear in Cooperstown, where second homes are not selling well, she said. — Mark Boshnack

24

Opportunity

The Daily Star, Oneonta, N.Y.

May 30, 2009

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