The Quarterly Publication of: Construction Contractors • Sheet Metal & Roofing Contractors • Fabricators Erectors & Reinforcing Contractors
On the
LEVEL WINTER 2020
2021
Navigating Economic Development in the Hudson Valley
LOV CCA Ad 2020 B.qxp_Layout 1 10/28/19 4:07 PM Page 1
EXPERIENCED. EQUIPPED. READY.
COST-EFFECTIVE, RISK-FREE COVERAGE FROM THE EXPERTS WITH OVER 80 YEARS OF EXPERIENCE. Join a Lovell Safety Group guaranteed cost program and share your group’s underwriting profits. As a member, you get:
Call Lovell today for a free, no-obligation quote on your Workers’ Comp Insurance.
• Cash-flow savings through high advance discounts • Substantial savings from consistent dividends • Improved experience ratings • Safety programs resulting in fewer accidents and higher productivity • Early medical intervention and return-to-work strategies
2
ON THE LEVEL:
Safety Pays Dividends Lovell Safety Management Co., LLC 110 William Street New York, NY 10038-3935 212-709-8600 1-800-5-LOVELL www.lovellsafety.com
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
INSIDE: “THEY WORK WITH THE GUYS THEY’RE MOST LIKELY GOING TO RESCUE.”
07 WHERE DO WE GO FROM HERE?
HV leaders share lessons learned in 2020, how they plan to grow the region in 2021.
46
32 HOW TO INCREASE TAX RATEABLES AND RECOUP REVENUE Municipalities get tips from Economic Experts
Laborers’ Local 17 Train for Confined Space Rescue Operations
36 Clean Air is Key Step to Staying Healthy 37 Staying the Course When It’s Difficult 44 Raising Your Company’s Profile with Content Marketing 57 Iron Workers Aid Tubman Journey to Newburgh 59 Dealing With Delayed Payments During a Pandemic 63 How does the Workers’ Compensation System Decide What is Fair to Pay to an Injured Worker?
40 URGENT PUSH FOR RTE. 17 EXPANSION PROJECT AMIDST STUDY DELAYS
67 Dept. of Labor Proposes New Rule on Employee Classification 73 Don’t Ignore the Needs of Your Employees
BOARD OF DIRECTORS Construction Contractors Association Dan O’Kane - Board President Mark Stier - 1st Vice President Mike Adams - 2nd Vice President David Campbell - Secretary-Treasurer Executive Director Alan Seidman Ron Bloomer Scott Dianis Ira Gold Jay Harrison Joseph Jerkowski Robert Kaehler James McGowan Joseph Perez Paul Taphorn Alfred D. Torreggiani Charlotte Van Horn
ON THE LEVEL:
Fabricators, Erectors & Reinforcing Contractors Association Justin Darrow – Chairman Jake Bidosky, III – Vice-Chairman Bernie Hillman – Secretary Daniel Teutul – Treasurer
Association Staff: Alan Seidman – Executive Director Barry Lewis – Vice President of Communications & Member Services Alan Creais – Director of Membership Patty Dalton – Executive Assistant Millie Rodriguez – Administrative Assistant
SMACNA of Southeastern NY Lou Doro – President James D’Annibale – Vice President Steve Mulholland – Secretary Daniel C. Harden – Treasurer Mark DiPasquale Michael Briggs Frank Ferrucci Walter “Chip” Greenwood William Haskel Dennis LaVopa, Jr. W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
3
HIT THE NAIL ON THE HEAD Advertise in On the LEVEL
Go to CCAHV.com Advocacy. Community. Projects. News. Events. On your computer, laptop or mobile device.
Advertising with us is a great way to showcase your brand to a wide variety of construction industry and business professionals including large construction companies and small equipment stores. It is circulated quarterly throughout the Hudson Valley, Catskills, and Southwest Connecticut and seen internationally via www.ccahv.com. On the LEVEL offers in-depth coverage and analysis of construction news, provides health and safety information, financial and economic insights, and authoritative comment from industry experts on laws and regulations affecting contractors.
VISIT. EXPLORE. SIGN UP NOW.
MEMBERS HONORED Congratulations to CCA members LeChase Construction, Pike Companies and Holt Construction for being named to Engineering News-Record top 400 US contractors, and to CCA Member Tectonic Engineering & Surveying Consultants for being named in the top 200 to Engineering News Record’s top US Design Firms.
UPCOMING EVENTS 2020 WINNER OF THE INTERNATIONAL MARCOM GOLD AWARD HONORING OUTSTANDING CREATIVE ACHIEVEMENT IN MAGAZINE EDITORIAL AND DESIGN
Like many organizations the CCA was forced to cancel multiple events in 2020. Two of the most anticipated events for members on the association’s calendar is the annual CCA Golf Outing and the annual CCA lobster-bake. While the virus has caused plans to change, the CCA has decided to double the fun in 2021.
TWO golf outings in 2021!
To contribute stories, advertise in future publications, or learn more about our products and services contact: Barry Lewis, Editor: blewis@ccahv.com Patty Dalton, Advertising: pdalton@ccahv.com
The first golf outing is scheduled for late May 2021 and the second outing is tentatively set for September or October 2021. The CCA intends to combine the lobster-bake with the golf outings, if the allowable attendee limits are raised, we will open the lobster bake to additional members/guests.
845-562-4280 info@ccahv.com ccahv.com 330 Meadow Avenue, Newburgh, NY 12550
Please visit our website, www.ccahv.com or call 845-562-4280 for any updated information.
4
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
STOP
GO
KNOW
How can I efficiently manage cash flow during economic downturns?
Talk to the bankers who understand the Hudson Valley, its streets, and its business climate.
We’ll help you know.
Where the brightest bankers live.
orangebanktrust.com ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
5
DIRECTOR’S MESSAGE What a year! I’m sure we are all glad to see 2020 in the rear-view mirror. To those of you that lost someone this year or personally suffered through the coronavirus, our thoughts and prayers are with you. We have never experienced a year like this before and let’s only hope that we don’t relive it again in our lifetime. The virus has had a greater impact on peoples’ daily lives, the economy, and markets, than any event since World War II. What the total effect will be, both in the near term and long term, may not be known for quite some time. What is clear is that the world has changed from 10 years ago, and what has worked for the past decade is not necessarily going to prove as effective going forward. But we learn, adjust and adapt. There is no silver bullet for the economy during a global coronavirus pandemic. We expect 2021 will be tough economically as businesses struggle to survive and governments face challenges to their budgets. In the construction industry, I am sure there will be more competition for fewer projects being bid. As the economy goes through it cycles, even for the ever-positive optimist like me, it will be some time before we see many new private sector construction projects. Hopefully educational, hospital and governmental projects will keep our industry and our trades busy, but even those sectors will have budgets that may force projects out a year or two. We adapted our mission during the crisis. While our Associations strive to serve our members in the best way we can every day, we thought and acted outside the box of our norm. Back in March, our members were faced with the lack of a supply chain for Personal Protective Equipment (PPE). Working with vendors we were able to locate, our conference room was turned into a warehouse. We purchased pallets of masks, gloves, sanitizers and other supplies and made them available to our members at our cost. Quoting my friend Earl Hall, Executive Director of the Association in Syracuse: “Over the decades, the 6
ON THE LEVEL:
construction industry has endured many eras of uncertainty and recessions.” Thankfully, we are here to face the challenges and figure out how to turn them into opportunities. What can we do better, leaner and how can we expand our markets and services? You must challenge yourself and your organizations to perform better and achieve more. This issue of “On the LEVEL” highlights some of our region’s leaders. Like our elected representatives and economic development officials discuss on following pages, you have the capacity to lead your businesses and our industry, to not simply endure but to flourish and help drive the recovery. I look forward to seeing the initiatives and ideas you develop! Is this the new normal? I certainly hope not. But for the foreseeable future, masks and sanitizers will be part of everyday life. The events that I enjoy, especially the CCA lobster bake and golf outing are postponed to 2021 and I already worry about being able to hold those May events. We are disappointed that we had to cancel this year’s annual Holiday Party. While these are minor events in the entire scope of things, it is certainly better to cancel or postpone, rather than put any of our members or staff in danger. The election is thankfully behind us - well almost. There are still the Senate run-offs in Georgia. Challenging times are ahead and I wish all those elected the best. I hope politics gets put aside, and that people we elect once again focus on being the leaders we need! We continue to thank our first-line responders, nurses, doctors, EMTs, hospital staff, police and fire personnel for their sacrifice. And I want to thank the staff in our office as well, alternating shifts when we all weren’t allowed to be here to make sure the office was open, and our members were served. Your dedication to our members is appreciated. Be well and may 2021 be a healthy and successful year for all. Best Wishes,
Alan Seidman Alan Seidman Executive Director
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Where do we go from here? HV leaders share lessons learned in 2020, how they plan to grow the region in 2021. By Barry Lewis, Vice President of Communications for CCA
Hudson Valley counties seemed in dire financial straits after the coranvirus pandemic forced businesses to close in March, shriveling sales tax and other revenue sources that support government payrolls. continued... ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
7
Where do we go from here?
A
s the country and region continue to deal with the economic and health crisis caused by the virus, the outlook is no longer grim
as budget plans for 2021 unfold. After shrinking staffs through attrition and buyouts and delays in other expenses, all five Hudson Valley county governments have now proposed spending plans that meet the state limit on tax increases and require no layoffs. Orange County experienced a nearly 10 percent drop in sales tax revenues through the first nine months of 2020 than it did in the same period last year. Dutchess saw its sales tax revenue down 5 percent and Ulster was down 2 percent. County executives from Dutchess, Orange, Rockland, Sullivan and Ulster counties have all released budgets that defied the worst economic expectations from the spring by forgoing layoffs and staying under the tax cap. Orange County Executive Steve Neuhaus, like his counterparts, froze hiring and ultimately saved more than $13 million by leaving 282 jobs vacant. While Legislators in Sullivan County shed 82 positions
Construction employment increased by 84,000 in October. The industry saw significant job gains in specialty trade contractors (+45,000), construction of buildings (+19,000), and heavy and civil engineering construction (+19,000). October employment growth represents a continued recovery from losses earlier in the year and follows strength in residential building permits in September. As of October, construction has recovered 789,000 of the 1.1 million jobs lost in March and April. Release November 6, 2020
through attrition, Rockland County Executive Ed Day slashed more than $8 million in spending as he said
ability to work together and then to the need to work
the county faced a “fiscal tsunami from reduced sales tax
together. Frankly we are doing that effectively.”
and state aid revenue, as well as increased expenditures fighting the pandemic.”
Economic analysts say that following an initial rebound in the summer when the non-essential construction ban
Elected officials and economic development leaders from
was lifted and activity slowly resumed, the economy
all the Hudson Valley counties said their sharing of ideas
has noticeably slowed in the past couple of months.
and resources was essential in easing the financial and
Virtually no sector has been immune from harm, and
emotional burden during the crisis.
New York’s residents and businesses are still under
“We are the front line of government response and in
numerous restrictions.
a public health crisis, our teams, our employees, our
Marc Baez, President and CEO of the Sullivan County
departments all stepped up and coordinated in a very
Partnership for Economic Development said it is
effective way, and as we move forward that will only
imperative for county leaders to continue to educate
continue,” said Dutchess County Executive Marc
people on not only how much development matters but
Molinaro, who worked closely early on with Neuhaus
how the moving of goods and services are intertwined
and Ulster County Executive Pat Ryan to aid the recovery
in the region.
effort. “It speaks to the relationships that we had, we all worked pretty well to begin with. It also speaks to our 8
ON THE LEVEL:
“Honestly, I never paid attention to the extent of it, how interlinked every business is with every other business
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Where do we go from here? in the Hudson Valley. When you say that 15 little restaurants went out of business, well guess what, the Boar’s Head guys delivers to them, the guy that delivers the plastics delivers to them, they’re buying soda and they have people. It’s deeper than what people realize. Even in the construction industry, delays in materials and equipment affect us all.” Forced in many instances to pivot from their initial economic developments plans for 2020, the county leaders said they had to reevaluate their priorities in facing an unprecedented test of character and determination. While nothing compares with the sacrifice of workers on the front lines in hospitals and other essential services, these heads of business and government had to cope with extraordinary demands as the pandemic has been an ultimate leadership test. For all their expertise, they are grappling with many new questions for which they don’t have answers, even as their teams and county residents look to them for direction. The COVID-19 crisis is a oncein-a-century event, and no training or experience in previous downturns has prepared them for it.
blewis@ccahv.com
Source: The Conference Board Economic Forecast for the US Economy ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
9
Where do we go from here? — Dutchess County
Dutchess County
Marc Molinaro, County Executive
“...our job was to rally work with any business in the county to help save them. We refocused. All the entities that do economic development... all focused on helping save businesses.” How much did you pivot from economic development
Are there advantages for businesses to leave NYC
plans in 2020?
for the Hudson Valley?
It was less of a pivot and more of a hard stop. The world
It’s a great opportunity. You’re going to see professional
came to a screeching halt in March and we all needed to
businesses take up space in the region. People are moving
reorganize. In the midst of that initial pandemic response
out of the City of New York, but they still want access
our job was to rally work with any business in the county
to transportation, restaurants and certain amenities. We
to help save them. We refocused. All the entities that do
are seeing a push back into the City of Poughkeepsie.
economic development (Chamber of Commerce, our
There is little question that we will continue to ride the
own Economic development team, IDA) all focused
wave of outward migration from NYC, filling higher end
on helping save businesses. Getting them PPE and
commercial and professional space.
advocating on the state level for relief to change their business model to work in a COVID environment.
What advantage does Dutchess have over other counties? Who’s competing? We all get our share. Sometimes
What did you have to put on hold?
someone’s share is more than someone else’s. (Steve)
We had nearly $5 billion worth of economic activity
Neuhaus has been gloating about all this construction he
underway coming into the year, and about 80 percent of
had going into the pandemic (laughing). We celebrate and
that stopped – although some of the essential construction
acknowledge our strengths. During the pandemic if you
was able to proceed. Many of those projects are active
look at COVID-related cases they hovered around
again including work on the former Hudson River State
transportation lines and that direct line into the city did
Hospital and at Vassar Brothers Medical Center. A lot of
pose a concern to some people. But proximity is important.
major projects stopped but picked up again. Real challenge
That direct connection gives those who might set up shop
is the small and medium sized business are borrowing
here the comfort of knowing they can get in and out of the
against themselves to stay open.
city in two hours is pretty good for them. We also have
10
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Where do we go from here? — Dutchess County a really deep infrastructure of square footage, we have locations and places that businesses can set up that are safe, that are easily accessible to major transportation lines, like 84, the Taconic, the thruway and good proximity to New England states. All of that, with relative affordable energy costs, a growing health care infrastructure, rail trail and park environment make this a great spot. You have Dutchess Alliance, but during the crises you added other groups. Think Dutch Alliance was in effect. That was our economic development team that partners the county, chambers and small business administrators. But our response to the pandemic come out of a traditional crisis structure with response teams. The Rapid Response
Vassar Brothers Medical Center Expansion in Poughkeepsie
Team and Business Restoration Task Force was meant to react quickly, help businesses, find out what do you
Steve (Neuhaus) and Pat (Ryan) come into this with really
need to get back on your feet. We launched the Dutchess
valuable military experience. I offer that I came into this
Business Notification Network, a partnership with the
with 25 years of very detailed government experience
chamber to put out information on what was going on,
and being able to dig deep into the relationships that I
contact information, protocols. This was one of the few
have with local officials and government leaders became
emergencies that we have had to face as a country that
invaluable. Pick up the phone to 20 towns 8 villages and 2
confronts everyone. Not regional, demographic, specific to
cities, this is what we need to do and get at it.
one segment of our economy. The allies work together. We all coordinated.
Biggest fear in 2021? It’s more of the unknown. When will be able to get back
What’s been the economic bumps?
up on our feet again? When will businesses be able to
Eighty percent of our community shut down. There were
function, or when will people be comfortable engaging in
certain employees that were essential and remained open.
those sorts of social and community activities that keep
Those people were heroes. Too often it was the cashier at
communities alive. When will that return?
the grocery store, the clerk at pharmacy or people driving trucks and making deliveries. Most of our economic social structure came to a steaking halt. These people became lifelines. We have a lot of colleges and they’re not able to interact socially in a community like they normally would. Spending money in our businesses is limited, engaged in community activities is limited. What has 2020 taught you about leadership? I learned the things I didn’t know pretty quickly. We were writing the rules as we were executing the plan. The need to be honest with your residents and constituents, that is critical. The need to be calm and consistent and credible without question is important. And the need to
Priorities in 2021? First making sure this government is effective. Our job is to manage county government that has a lot of responsibilities with less money. Expectations of taxpayers and residents without shirking the burden. Getting people back to work, pay the bills, support their families. How long before you get to where you want the county to be? This is 18 months of recovery We’re not going to flip a switch. There will be great days and weeks and then some new challenges. This is 18 weeks of rebounding. Working together. Stay focus.
allow people to go through their own emotional concerns. ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
continued... 11
Where do we go from here? — Dutchess County
“Our model goes deeper. It goes into creating diversity in the industries, it goes to the workforce and making sure they are skilled, get at street level and see how they believe it should be developed.”
Ron Hicks, Assistant County Executive How much did you pivot from economic development
Are there advantages for businesses to leave NYC
plans for 2020?
for the Hudson Valley?
Expansion, attraction was not suspended but we moved
Absolutely and it’s a mixed blessing. Beyond 2021, this is
into more of a responsive position rather than proactive as
a historical moment that will change how we do business.
it relates to those businesses. I shifted from a heavy focus
How we live and our workplaces. We had transformed
on economic development and pivoted to what businesses
into urban areas where you had 10 people working in the
and our residents were going to need and get the requests
office space that used to accommodate two. You had no
up to the state. We activated our rapid response team
walls. No doors. People faced to face. It was almost like
(business, economic development, education leaders) to
a trading floor. A lot of these new urban spaces are going
create the Dutchess Business Notification Network, an
to have to change. More office is space is going to have to
infrastructure for the specific purposes of communicating
be needed or at the same time it may mean more people
about COVID. Didn’t want tourism, business groups all
will be staying and working from home and won’t be
sending out different messages. The access they need
using office space at all. Locally, we have record housing
was critical to our economy, at that point it wasn’t about
development going on while at the same time we have
attracting a new business into the county as much as it was
people who have been aging in place sitting in homes who
insuring whatever business, regardless of size, they had
are just recovering from the last recession in terms of their
guidance and information. We have a very large service
home value. They see an opportunity to get some of their
industry, that includes restaurants, bars, hospitality hotels,
money back. Those people can leave their 2-3-bedroom
all very important to our tax base, which is 41 percent of
home, move into condo or apartment and get money while
our revenue.
making homes available to families coming up from the city that can occupy them now.
What’s been the economic bumps? Uncertainty. Uncertainty, uncertainty. That’s it. At
What advantage does Dutchess County have?
the beginning we didn’t have answers. Our economic
It’s always been a tremendous benefit having two train
development model is a little different from the other
lines, the Hudson and the Harlem Lines and the Taconic
counties. Their focus is on bringing big business or
Parkway right in the middle of the county and Amtrak
businesses into the county and expanding them. Our
services to stations, Poughkeepsie and Rhinecliff.
model goes deeper. It goes into creating diversity in the
When we get control of the pandemic, we’ll see those
industries, it goes to the workforce and making sure they
people who have chosen to live over here have the
are skilled, get at street level and see how they believe it
infrastructure to get back and forth to NYC. I can see that
should be developed.
as an advantage over here.
12
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Where do we go from here? — Dutchess County What has 2020 taught you about leadership?
to normal because our economy depends on consumer
That we are responsible to the people and we have to
confidence and jobs so people can have some discre-
cover just about every situation possible. We can’t depend
tionary income and pay their rent. We had $4.7 billion in
on the federal government. Can’t depend on the state. No
projects in economic activity under construction or under
disrespect to the state. We have to be the best government
development right at the start of COVID. We’re now at
possible to our people. Maintaining communication in a
$4.3 billion. A good number of those, about a quarter of
very respectful way, manage needs and expectations of
a billion dollars has completed. Some have been paused,
our local governments. We sought out our own contracts
majority has been completed.
for PPE and the pipelines for them. Provided the infrastructure. Didn’t wait for the state.
How long before you get to where you want the county to be?
Biggest fear in 2021?
My boss may say this differently, I believe there will
I would like to see an end of COVID. I don’t think we’ve
be an uptick now and in the spring. Hopefully there
seen the worst of it. I can say we are prepared. We’ve been
will be a vaccine in place in time for summer. We rely
though one wave. At least half of the year we’re going to
heavily on tourism, so our businesses hotels, restaurants,
be under some restrictions, worried from now until May
entertainment venues, all those things looking at 2022 for
of next year about the economic impact of the pandemic.
normalcy. There is still a reluctance for people to travel
Worried about the sustainability of current businesses.
and congregate in large groups. I think three years for our economy to stabilize if all goes well.
Priorities in 2021? In 2021 our priority is to continue to get this pandemic under control so that business and people can go back
Cricket Valley Energy Plant in Dover ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
13
Where do we go from here? — Orange County
Orange County
Steve Neuhaus, County Executive
“We need as a county to prepare and offer as much as possible for people coming up here. Companies want to know there is a quality of life for employees if they do move.” How much did you pivot from economic development
Are there advantages for businesses to leave NYC
plans in 2020?
for the Hudson Valley?
We had so many goods in the pipeline, Amazon, Medline,
Absolutely. I think we need to embrace it. It’s a great
Legoland, that we’ve been able to keep the trains
opportunity, coming up here for a better life for them
running economic development wise. As far as trying
and their families. A lot of people with big corporate
to recruit and bring people here it’s been a little different.
footprints in Manhattan might be able to have that
We’ve gotten a lot of attention because New York City has
footprint here, but at a smaller space for what they need
seen an influx of people leaving.
as opposed to what they needed yesterday. We took out an ad in the New York Times, “Escape from NY” in early
What did you have to put on hold? The only thing we’ve stopped in the county is our own projects. We prioritized our infrastructure projects that
summer and we had a lot of interest. But I think a lot of it was organic and natural.
really need to be done. In the past we’ve done a number
How do you keep them compared with other counties?
of bridges a year, this year maybe one or two. The
We have quick access to the city. It’s a 60-minute ride.
commercial projects are still happening for us. All our
What you’ve seen now is a transformation of the entire
economic development partners are worried about what’s
industry. We are seeing people able to buy in Southern
going to happen in two years. Because these things don’t
Orange, and still be close to the city. For the most part
happen overnight. You have to work on them to get them
remote working is going to be a permanent fixture for
approve. What happens next year when Amazon and
many industries. Everyone has their own little niche. I get
Medline are done? We had hotels in the pipeline that are
it. I love going up to Sullivan County and fly fish. They
coming back again.
offer some stuff that I don’t have here. Orange County has a lot to offer people with Legoland, Woodbury Commons and West Point.
14
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Where do we go from here? — Orange County What’s been the economic bumps?
Do differently?
Working with the planning and town boards to hear things.
The first couple of weeks I was very confrontational
A lot of people who wanted to put projects through the
among all the staff, barking orders as if I were in the
pipeline had a hard time because meetings were virtual
military operations center. It was uncharted territory.
and they didn’t meet as often. Now boards have gotten
Ninety percent of the people have never been in a crisis
their sea legs, and some are meeting. The virus did help the
situation like that. We had people in 7-days a week,
approval process. You don’t have these massive crowds of
working 12-hour days who normally do regular office
500 people coming and influencing a planning board.
work, coming into the 911 center, saying we have 20
What has 2020 taught you about leadership? You have to listen to everybody at the table, but you have to make a decision. When you surround yourself
people dead today and the hospital saying you have to take the bodies, we can’t take the remains of people. Hospitals not having N-95 masks. That added to the crises.
with an emergency management team that’s made up of
Biggest fear in 2021?
all different types of people, some are telling you to be
The damage done from 2020. Hospitals are more prepared
forward leaning, others that you have to take a step back,
how to treat people. Experience is the strong value we
but at the end of the day you have to make a decision and
have right now. Fear is the long-lasting damage to the
you have to move forward with it and sometimes you have
economy. Mom and pop stores, restaurants that can’t make
to throttle back your decisions. Articulate to calm people
it anymore. They were able to limp along with outdoor
down and helping people. DMV trained them to handle
dining but now in the cold months they just can’t make it.
3-1-1 health calls, tourism and employment training to
People who lost jobs. Will there be disposable income to
handle unemployment claims. Being flexible is critical.
help these businesses? Long-term impact sectors in our community? Woodbury Common will come back strong but they lost international visitors and there are still 2,000 people who used to work in the stores that were let go. continued...
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
15
Where do we go from here? — Orange County Priorities in 2021?
How long before you get to where you want
Tourism. I don’t see a dip in people coming up here.
the county to be?
We still have record crowds. That’s going to continue to
I think by next summer we’ll be back to 2019 sales
grow. We need as a county to prepare and offer as much
tax numbers, if not sooner. It will be another year after
as possible for people coming up here. Companies want
Legoland’s in full effect and everyone’s coming up here
to know there is a quality of life for employees if they do
not just the fall apple and pumpkin picking. It will also
move. We’re looking at a 250,000 sq. ft. Amazon building
depend on if we have a brutal winter again. You will have
at Stewart Airport, similar to New Windsor, this one
long term repercussion if Main Street stores begin shut
strictly air based. Land at Stewart, offload their goods to
down. That’s a huge concern to me.
a distribution center there and work with the one in New Windsor for ground transportation.
We have to focus on continuing to engage developers to invest in our region. Our infrastructure is in place for a lot of types of industrial development. Maureen Halahan, Orange County Partnership President & CEO How much did you
Are there advantages for businesses to leave NYC
pivot from economic
for the Hudson Valley?
development plans
One hundred percent. The Orange County Partnership
in 2020?
works with a lot of companies that come from the city and
Orange County was positioned pretty well going into
Northern New Jersey. That’s been our marketplace for the
the year anyway. We had an explosion of interest of
last handful of years. They’re still in the metro area up here
developers nationally. A lot of them were going into
but the cost is much cheaper. So those people might be
contract. When COVID hit, because of the industry
working from home for a company that’s still in the city
that they represented and because of the location that
or points South or East but I’m sure they prefer to work up
we had here, most of them moved forward with their
here. I believe our labor pool will become richer based on
plans. Companies that we were working with inside the
the exodus from the city.
county that thought there were going to put shovels in the ground and move forward with expansion, a lot of that is inactive right now. The retailers are really the ones in the most trouble, but Amazon and Medline are all under construction. As far as going to conferences and trying to drum up new opportunities for site selectors, that was all put on pause. But we have long-term relationships with those site selectors so we’re still doing a lot of virtual things with them.
How do you compare with other HV counties? I had a call with the State of New York to see if we can start to quantify some of the exodus out of the city and use it as marketing tool in Orange County for site selection for attractions and for projects to say, you’re workforce is here. We have a certain workforce now that can focus on a whole new sector of projects. You have young people paying top dollar for crappy city apartments with not a lot to do down there. It’s not as fun as it was. Then they come up here, go out and make a life in Orange County. I think they will stay here. Especially with opportunities to work remotely.
16
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Where do we go from here? — Orange County What’s been the economic bumps?
we thought we’re all going to get it and die, could have
Despite some transportation issues we are still an absolute
done that better in hindsight.
magnet for e-commerce and distribution. Although I do have concerns about the MTA and mass transit up here and trying to grow that. I think our region will face some serious water, sewer and energy issues, especially with the closing of Indian Point.
Fear of 2021: That the virus continues to be on the rise and that there would be more forced shutdowns. Priorities in 2021?
What has 2020 taught you about leadership? That we need more leaders. I think it comes in many different forms. I think that resilience and the ability to never let quitting be an option is a very import part of leadership. For me it’s trying to motivate my team so we’re all marching in the same direction. Keeping the most positive attitude even if at times thinking things are crazy and in trouble. I envisioned myself over the last year as the
I think small victories is a win. We have to focus on continuing to engage developers to invest in our region. Our infrastructure is in place for a lot of types of industrial development. Working with the large-scale developers that have a portfolio of customers they will bring with them is definitely a priority, also helping our existing companies with their long term plans, making sure they don’t go out of business help them stay afloat is a priority.
tortoise. I knew if I got up every single morning and put
How long before you get to where you want
one foot in front of the other, and work hard we’d be ok.
the county to be? That forever evolves. How we can develop our cities,
Do things differently? Always. I was putting out fires and trying to figure out what we’re doing that day or week. Took me a month or a month in a half to have a different long-term plan. You set into the new year in the hottest economy with a lot of promise for success, you tee up for all things you plan on doing and the carpet gets pulled out from under you and in those early months, especially during the uncertainty when
keep the youth here. We don’t need the home runs every time. We need singles, doubles and triples of companies that will develop a niche industry here and keep some of our workers in a position where they can make a higher wage. All of those things are important as Orange County evolves. I think if you look back 20 years ago. We’ve come a long way.
Medline, a healthcare company and distributor of medical supplies is building a 1.3 million sq. ft. facility in the Town of Montgomery. ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
17
Where do we go from here? — Rockland County
Rockland County
Ed Day, County Executive
“We’ve been very successful since 2015, bringing in $2.8 million in rateables from various industries across the board. Tax paying entities.” How much did you pivot from economic development
You really emphasized communicating with businesses:
plans in 2020?
Absolutely. What we told all the small businesses is, yes,
We always focused on a varied approach to bring business
checking the boxes and have social distancing and all the
to Rockland County. We weren’t stuck in any one
safety protocols in place is important, but if you think for a
industry. It was the developers, the private sector who
moment that you’re going to be able to do all those things
pivoted, knowing they needed to do something different
and people will be flying through your door you’re kidding
now since the old approach was not going to work. We’ve
yourself. This crisis, and a lot of it due to how some of
been very successful since 2015, bringing in $2.8 million
our leaders have acted, has scared the daylights out of
in rateables from various industries across the board. Tax
people. It changed their habits, it put a panic in them.
paying entities. That helped with tax base and unemploy-
To think people are going to come back into a restaurant
ment. We will come out of this stronger than most would
without any concern is fantasy. We said to businesses,
have expected considering the impact of the crises.
your marketing efforts, your reopening efforts has to
Are there advantages for businesses to leave NYC for the Hudson Valley? We saw this before the impact. The dynamics had shifted so much that people realized that they didn’t have to go
also include an outreach to the fears and concerns people have about coming back to work, coming to a restaurant or going bowling, whatever it may be. That was a strong effort we made here, and it made sense.
into the city every day, they were able to work off-site
What’s been the economic bumps?
more often, no need to have five stories in Manhattan
Many of the things that we were doing before this came
anymore. Maybe just one in Rockland. We were selling
into play actually helped us, made us be more resilient.
Rockland in 2014, my first year in office, embarked on
Rockland County was almost broke. We had a deficit.
a campaign that Rockland’s no longer some secret, that
I’d have yearly fights with the legislature. They didn’t
place across the GW bridge. Gave Rockland an identity.
understand that in order for us to be really healthy we needed a fund balance. Every time there was money
18
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Where do we go from here? — Rockland County coming in certain legislators wanted to spend the money
What could you have done differently?
before we had it. I said we can’t be doing that. Fast
That is still developing. I don’t think we have not gotten
forward to 2020, and we get hit with a fiscal tsunami. If we
to where we’re supposed to critique this because there are
had not been obstinate and conservative when it came to
a lot of things we have some control or no control over. I
budgeting and refuse to give in, that positive fund balance
would not at this juncture say what we would have done
could have been completely erased and we’d be back in a
differently because we don’t know right now if we’re in
deficit, which is a recipe for disaster.
the right path. We always do a post-critical analysis of
What has 2020 taught you about leadership: The one thing that I understood as a police commander and having managerial jobs in the private sector is that no matter what happens you have to remain calm and
what could we have done better, but the event is over. This is still going on best judgments. The job of leadership in crises is to maintain calm. People are way too anxious about this disease.
resolute. In times of crises, I have experience in my life
Fear for 2021:
where I’ve gone to scenes that it was utter mayhem. Those
That we will see a recurrence of early 2020 and the ability
lessons learned back then came in quite handy as we had
to deal with it will still not be understood. We should
to navigate through a fiscal crisis and a public health crisis.
replace fear with concern. continued...
Construction of a new Highway Department facility in Rockland County. ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
19
Where do we go from here? — Rockland County Priorities in 2021? It’s a balance. You have to help people understand. We have a highway garage going up. But if they see you spending $30 million on a garage, they yell, ‘how can you spend $30 million on a garage?’ They don’t understand you’re not spending $30 million, it’s like a mortgage. You’re taking bonds out. You have to balance the needs of the moment. What we see are projections and back in June they were frightening. Horrible. It’s modified a bit, but we were certainly not out of the woods yet. We paired down our projects by about 50 percent for this coming year in the budget, so instead of $40 million in projects we have $19 million in projects. We’ve taken steps as it pertains to personnel by not filling a number of positions in county government. Large projects, I refuse to stop getting them done. All we accomplish by delaying many of these projects is to just give a bill to our grandkids. I will not do that.
New Park & Ride Facility in Monsey Park
How long before you get to where you want the county to be? What I find frustrating is that we went into 2020 just about where I had vowed, we would be at after coming back from being the most fiscally stressed county in New York. Our business was strong, sales tax revenues coming in strong, unemployment was low, everything was humming and our fund balance was projected to get to where it had to be the end of 2021. Now, it will be at least couple of more years for sure. Not a couple of more years of a pain, but I see maybe three more years of hard work.
“Businesses are finding a sweet spot for Rockland given our location... They are coming up here because our incentives and were leveraging that opportunity so that the jobs are here.”
Jeremy Schulman, Director of Economic Development and Tourism How much did you pivot from economic development
dealership taking over a Bob’s Discount site in Nanuet,
plans in 2020?
VW, close to $5 million renovation. That’s a good
Prior to the pandemic building in Rockland was trending
example of transformation. And the Palisades Mall vote
up quite a bit. Construction deemed essential, seeing right
on the referendum to lift restrictions and open 250,000
now, repositioning properties, taking advantage of this
sq ft. on the fourth floor, occupy maybe entertainment
time to market for coming out of the pandemic. Amazon
use, not traditional retail, will be tremendous moving
is renovating two buildings in Hudson Crossing Industrial
forward. The folks that are struggling the most are small
Park, over 200,000 sq. ft. in Blauvelt. Auto dealerships
businesses, 50 employees or fewer, main streets and
are doing well right now. People want to avoid public
downtowns. Very different picture when you talk about
transportation. Stay in own cocoon There’s a VW
the construction sector.
20
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Where do we go from here? — Rockland County What advantage does Rockland have over other counties? While there is friendly competition there are major differences. We have new bridge infrastructure, cheaper than the George Washington bridge, leads right into Rockland. We have manufacturing close to services and there is a new career consortium, one-stop workforce development center in conjunction with the Rockland Workforce Development board, that is in partnership with BOCES and the state Department of Labor. Besides the city, there is an influx of people from New Jersey who see the benefits of living and working in Rockland. We have some public sector properties and private properties of a certain size that are available. Developers can be creative in reusing the space. You are expanding your economic development reach: Businesses are finding a sweet spot for Rockland given our location. We are expanding the number of microbreweries, all doing well. We are working with a private developer to build infrastructure here in Rockland, plant a permanent flag for the film, media, TV industry that is currently in Brooklyn and New York City right now. They are coming up here because of our incentives and we’re leveraging that opportunity so that the jobs are here. There are five qualified production facilities in the county. Looking at that in every sector. Bio-med companies are looking at our existing infrastructure like the former Pfizer campus.
What has 2020 taught you about leadership: We can survive anything. Measles pandemic, recession laden times. We were in our offices all throughout out this entire pandemic working on behalf of our constituents, reassuring them, coming up with innovative ways that may have not been traditionally practice economic development before to move forward. What could you have done differently? You are evaluating something before it is over. That’s not only difficult to do but irresponsible. Fear for 2021: I don’t look at it as fear but look at it in terms of delay in delivery. That’s health. You can’t have a healthy economy if you don’t have the quality of life that we all know and
Hurdles still need to clear: Working with our municipal partners to ensure that zoning fits with their comprehensive plan but that they are also flexible to accommodate these new realities that we’re seeing in the market space. That might be former retail space being converted into industrial or light manufacturing or some other use because the demand is there. In June we created a business advisory committee, a small nimble committee to work with CEOs and the RBA (Rockland Business Association) to deal with the immediate crisis at hand while at the same
expect here in Rockland. Priorities in 2021: Projects in the pipeline for economic development coming to fruition. I don’t know about the other counties but my phone is off the hook, emails are coming in, residential real estate is off the charts and people and CEOs want to have their businesses here. Tourism is growing, bicycling, Bear Mountain, Harriman, over 1,000 people per day in the summer. Activity is real.
time looking at long term responsible and sustainable
How long before you get to where you want
economic development.
the county to be? I think we’re looking at an economic rebound.
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
21
Where do we go from here? — Sullivan County
Sullivan County
Rob Doherty, Legislature Chair
“We are not a manufacturing economy, we’re a sales tax economy. The three biggest are car sales, home improvement and gasoline.“
How much did you pivot from economic development
Are there advantages for businesses to leave NYC
plans in 2020?
for the Hudson Valley?
I really haven’t’ pivoted that much. One of my main
Orange County has the advantage of being closer to the
goals has been to expand broadband throughout Sullivan
city. It’s a mileage issue. But by increasing broadband
County and that seems to be moving pretty well. We
in Sullivan and keeping taxes down, then people can
currently have 11 towers; the plan is to have 12 by next
live anywhere they want. They can tele-commute from
summer. By the end of 2021 they should all be outfitted
anywhere in the world. We have an airport that hasn’t
and broadband will increase significantly in the county.
been developed in 50 years. We need to improve on
That’s our best path to economic development on the
transportation issues.
western part of the county. We are not a manufacturing economy, we’re a sales tax economy. The three biggest are car sales, home improvement and gasoline. We need to encourage second homeowners to come up more and increase the occupancy rate, we want people traveling here and going back and forth and then you hope when people come up they buy cars.
What’s been the unexpected hurdles? I didn’t know the true extent of the tax situation inside the county. The impact on some school districts is tremendous. When there’s a tax raise the county is usually the lowest one, then the town and then school. There are some school taxes that are so oppressive that it’s hard to develop in those areas. We are finding that
What did you have to put on hold?
at the airport which is in the Liberty school system.
COVID really highlighted the communication problems
It’s very difficult to draw people in because of the tax
that we have in Sullivan, specifically with broadband.
situation. We have to work together with the school
There are a lot of students that can’t get the education
system, with the townships, and then obviously the IDA
that should be afforded to them because they just don’t
at that point.
have WiFi throughout the house. 22
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Where do we go from here? — Sullivan County What has 2020 taught you about leadership?
into it more and gave it due diligence, I found out more
You go in with a vision. There are nine votes. Not
about it. I moved off from where I wanted to go and
everyone agrees with you. As a leader you have to try
compromised so that we can now lease it.
to bring them along with you. You can win votes 5-4 or win 6-3, obviously you’d like 9-0. In business you just want to win. In politics you’re dealing with a whole county, so you want everyone to come to a consensus. That’s how the system is set up. You try to get to common ground.
Priorities for 2021? Broadband is the key issue for the county. I live in Bethel and I can’t use my cell phone outside my house. I can’t get a signal. I have to go inside where there is a booster for the phone to work. During the summer when our population triples you can’t use any devices. Think
We talk a lot about openness in government. Do you
about being down by the river and you can’t use your
think you hit that mark?
phone. One of our greatest attraction and you can’t
Absolutely. A lot of people don’t agree with me. I don’t
use devices. And we have to try to keep taxes as low
discuss anything in the back room as a group. I discuss
as possible. If we can keep our taxes at stagnant rate,
everything up front. Some people have an issue with
while everybody’s taxes around us are rising, we can
that. The process is it goes into a committee. You put it
be more competitive.
on your agenda, it gets moved, it gets second, and you discuss it in public. A lot of people don’t like that. They say ‘I wasn’t informed of this’ and we should discuss it.
Biggest fear into 2021. The pandemic coming back.
What are they exactly saying? That we should discuss
How long before you get to where you want the county
this as a group before we go public? I feel the people
to be?
have a right to know what’s being discussed in public.
I think it’s probably going to be 7-8 years down the road
What has 2020 taught you about leadership? There were some issues, the idea of selling the Adult
before we’re on equal footing as a desirable place to go as Orange County.
Care facility (Care Center at Sunset Lake) for example. I maybe wasn’t willing to change my view on some things, but after some conversations, and as I delved
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
continued...
23
Where do we go from here? — Sullivan County
“We have a window of opportunity now, especially in the IT sector and other financial services, but it’s going to require broadband usage and we can do that.” Marc Baez, Sullivan County Partnership President & CEO
How much did you pivot from economic development
Are there advantages for businesses to leave NYC for the
plans in 2020?
Hudson Valley?
We like to use the word adapt rather than pivot. Our first
Everyone is trying to get developers up here. We’ve been
priority in March was to help the businesses that were
making that case that Orange County is there, it is close,
going to be the heaviest impacted. Our minds weren’t
but pretty soon it may not have the space. Now is the time
really on the big picture stuff. Let’s make sure we act
to start thinking about coming up here. We’re never going
quickly in our revolving loan committee to gather a
to become Orange County or other areas that get a certain
financing product that we could get out on the street in four
level of activity. It would take us 20 years. That’s never
weeks. And in six weeks we had 17 applications. We kept
going to happen. We have a window of opportunity now,
businesses running. In terms of big picture stuff, projects
especially in the IT sector and other financial services, but
already on going before this hit, it helped that construction
it’s going to require broadband usage and we can do that.
was allowed to restart. That’s what drove our economy,
We are hoping to capture as much light industry as we can.
besides the essential stuff. Eldred Preserve, Marshalls,
There is interest in the Western part of Sullivan but that
summer community all kept building. We saw construction
area has the greatest need for broadband. Large companies
activity across the county, summer population develop-
have a core work-life balance that they adhere to for their
ments, they’re buying goods and services, they’re paying
employees. They can appeal to younger, millennial types
contractors, so we knew before the sales tax collection will
and they want to do it in the Catskills.
be there or close to it.
What advantage does Sullivan County have?
What’s been the economic bumps?
Depends on the industry sector. There are companies
Everything shut down. The casino, water park, major
that want to be way out. They perceive Westchester as
projects and those employees are either laid off or
too close; they want to be out in nature so to speak while
furloughed forever. The scale of the weddings and catering
having the ability to conduct what they want to do. A
events that shut down is a big deal for us because its where
financial services firm in Manhattan may not want to be
people want to be. Fortunately, with this weird kind of
on the umpteenth floor anymore and look upstate. More
dynamic properties rented all summer long, B&B’s were
than likely they will find a building or a site in Orange or
all full, summer places full. Even if everything opens
somewhere else where they can build a four-story office
tomorrow and everything is great, the perception you still
building. But for companies who want work-life balance
got to get over is to show people that everything is safe. It
they want to go further and so we’re capturing the little
will be hard to overcome without a vaccine. Our lack of
unique niche and its working for us now. But the way to
broadband is a significant impediment.
compete is to make sure your infrastructure is in place. We have to invest in water and sewer, but if we can get the IT
24
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Where do we go from here? — Sullivan County stuff up here people will work out of second homes and
Biggest fear in 2021?
stay. We have lower cost of land. The folks who did come
That there is another massive uptick and things are shut
up here realized it isn’t that far. The perception is that it’s
down again. That would be very difficult to overcome. A
all the way out there. They say, it wasn’t that bad. They
long shutdown period would hurt
look at the map and see that it’s so far away. It’s really not.
Priorities in 2021?
What has 2020 taught you about leadership?
Infrastructure on broadband. This is going to be a top
That you have to be courageous. That you have to be out
priority for us. And the traditional ones, economic
there. As an organization we became very lean. Anything
development, the very core never changes. You still
we perceived to be not necessary, we eliminated that.
need sites, still need water/sewer infrastructure, still
Brought it back to the core of what we should be doing,
need proximity to transportation routes – so those things
which is selling Sullivan County, helping small business,
are developing. I don’t think e-commerce is going
finding sites and doing the raw economic development
backwards. There is a lot of room for growth there. We
activity. Things we should have done a long time ago. Less
need to have sites. Those are good rateables, good jobs.
print, less old school type communication, more digital,
We need to get our larger scale tourism back and help
more graphics oriented, more communicating. Change
them as much as we can.
message from how we were getting it out before.
How long before you get to where you want
Unexpected stumbles this year?
the county to be?
I thought we did everything right. I didn’t let up. Need to
Going into February we were there. We were 3-something
keep the message going about the need for a third lane on
unemployment, we were finally for a very long time a
Route 17. Because of the pandemic it’s that much more
labor importer as opposed to exporter. Still a long way to
important for people and goods and services to get back
go but the trend was there.
and forth from Manhattan.
New Sullivan County Jail on Old Route 17 in Monticello. ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
25
Where do we go from here? — Ulster County
Ulster County
Pat Ryan, County Executive
“In the 21st century economy you can do most of what you need to from here and have all the great quality of life aspects. That’s actually at the heart or part of our thinking for our strategy looking out 20 years to 2040. ” How much did you have to pivot from economic
some land a do a significant buildout and investment
development plans in 2020?
and they are now holding on that. Its most difficult for
We had to adjust. In my view we need a long-term strategy
particular segments of our economy like restaurants,
and have major projects and investments lined up and
hospitality and tourism. Hospitality industry had a 70
we can’t lose focus on that. That would be a disservice
percent reduction over the worst quarter of the year
to community and industry. But we also had to add
from last year in terms of generating sales tax. Other
another critical mission which was an immediate, in
segments, manufacturing sector has been adding jobs.
the trenches support for 7,000-plus businesses within
Making products for business to put up plastic screens or
Ulster County. So immediately set up an economic
reconfigure their dining.
development hotline team, a single point of entry that folks can call, help get access to funds, be it emergency disaster loans or the PPP program. We brought tens of millions of dollars in financial support directly and worked with everybody to set that up. Set up loan funds. Set up a mentorship program for businesses as they had to potentially pivot their business models to speak to top expects to adjust their operations. What did you have to put on hold? I’ve talked to a bunch of businesses that were looking to grow and invest this year, one of our larger manufacturing businesses with a few hundred employees had acquired 26
ON THE LEVEL:
The Ashokan Reservoir.
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Where do we go from here? — Ulster County Five months after creating a Department of Economic
what you need to from here and have all the great quality
Development the state shut down. How did that impact
of life aspects. That’s actually at the heart or part of our
your plans?
thinking for our strategy looking out 20 years to 2040.
Maybe everyone says this, but I think we’re trying to think about economic development in a pretty different way. We outlined a 2040 strategy as a truly people centered economy, asking why have these businesses? Why are we all working? Before the pandemic, 4-in-10-households are living paycheck to paycheck. COVID made that so much worse. I tasked our new Economic Director Tim Weidemann with thinking through and implementing a much more holistic strategy to address that. Do people have jobs, are they earning living wages, are there opportunities to grow, getting benefits? All that effects the economy, but we haven’t’ always thought about it. Are there advantages for businesses to leave NYC for the Hudson Valley? The Hudson Valley and Ulster County are perfectly positioned to come out of this much stronger economically because of the willingness of folks to move to different places, be it as an individual or a business. We realized pretty quickly the change from how people have worked for decades and business have operated, and it presented a huge opportunity for us. In the last decade there’s been an increase in the number of full or part time residents who have a presence in the New York City, but decided why pay much higher rents there when they can be up here in a much more beautiful place and move their business and operation. In the 21st century economy you can do most of
What advantage does Ulster have over other counties? Our Ulster 2040 strategy outlines four economic clusters where we see we already have a competitive advantage and where we want to build that competitive advantage. Some of these areas is what’s sets us apart from our neighbors, and the culture and way of life. You’ve got Woodstock, the Ashokan Reservoir, the Catskills and a pretty thriving up and coming urban center in Kingston where you have design companies, technology companies, fashion, great restaurants and food. I see that need to be positioned to take advantage of that. What has 2020 taught you about leadership? Leading in combat and startups in business, it actually just validated the lessons that I had learned in those worlds. Moments of crises really do call for more hands-on leadership and someone who can provide some vision, some direction and also some empathy in these moments of uncertainty. In the beginning every day doing a public update where we had thousands of people tuned in to get accurate unbiased information. What we used to say in the army is if you’re not uncomfortable you’re not doing it right. You have to be willing to make hard decisions quickly with limited inflation and doing the best you can. Waiting is a decision with consequences. We were the first county in state to close schools. continued...
Construction on the Ashokan Rail Trail. ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
27
Where do we go from here? — Ulster County Biggest fear in 2021?
revitalize the former IBM site in Kingston, workforce
We’re not through the worst of this economically. That
housing projects and the former county jail site. In the
we aren’t able to bounce back and that we have tens of
budget that I proposed in 2021, spend $48.5 million as a
thousands without work or adequate work and what that
county on infrastructure projects, work on roads, bridges,
will mean on the strain on all our support programs and
$5.3 million on our economic development efforts.
social service programs already struggling. That would put us in a difficult moral and financial situation. I think economically, next year could be worse for local governments, for families and for many businesses.
How long before you get to where you want the county to be? My staff would tell you that I’m not a patient person. I want all this to happen immediately. If we make some of
Priorities in 2021?
these foundational investments in the next few years we’ll
If we can get through this some significant things coming
see the fruit of those investments in a 5-10 years.
up, begin work at the former Hudson Valley Mall site,
“The need to build a people-centered economy that puts our residents and their well-being first and foremost in our economic development work is as relevant or more so than ever.“ Tim Weidemann, Director of Economic Development How do you look to make game plan of 2021 work?
How much of the Ulster 2040 plan is going to be looked
There are fundamental truths that transcend the COVID
upon differently in 2021?
crises on how we know we need to proceed with economic
I don’t think any of it. The strategy was written at a level
development. The COVID crises puts them in even starker
not so much to guide next year’s budget decisions and
relief. Ultimately economic development on a county level
what we as a department are going to spend money on
is about trying to create a better, more prosperous life for
as more intended to set a longer-term course. We wanted
the residents of the county. A few months back we asked
a plan flexible enough to allow us to adapt to situations
our Ulster 2040 group how do we continue to plan for
that are always evolving. Every year is different, 2020 a
our economic future as we’re confronted with something
little more than others, but that can’t stop us from aiming
none of us ever really expected and don’t know what
for something that we believe in and feel compelled to
the consequences of the pandemic will be. Should we be
put in the work to get there. The plan doesn’t change. The
planning? The group came back and said this is as more
need to build a people-centered economy that puts our
timely than ever. We need to envision our future 20 years
residents and their well-being first and foremost in our
down the road to be as effective as possible. Even without
economic development work is as relevant or more so
COVID we know that our residents in Ulster County
than ever. What it tells us is that things like public health
and parts of the Hudson Valley for quite some time have
are not separate from economic development. They are
struggled to pay their bills and to live here. We need to
intertwined. If we have public health crises that makes
build an economy that serves everyone in our community
us shut down our economy, well then it’s obvious that
more effectively.
development and health go hand-in-hand.
28
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Where do we go from here? — Ulster County What is the game plan in 2021 to attract businesses?
would be happy to see a company choose Ulster County
Our primary goal is not attraction and it’s not big
as the location to bring high quality jobs there’s a risk
business. It’s to support the existing small businesses
associated with those kind of large facility locations.
that we have here going into 2021. Unlike some of our
It can have a large environmental impact. Some of the
surrounding counties Ulster is an economy of micro and
growth might not be compatible with the values of our
small businesses. That’s our focus. We do have projects,
local communities.
such as the old tech city. For 20 years we’ve been trying to find a path forward for that site. Years ago, the county foreclosed due to unpaid taxes on a portion (400,00 sq. ft, 27 acres., additional 57 acres of vacant land). Work with county legislature to improve the economic viability of that site and ultimately the larger campus with the goal to make it the center piece of small-scale manufacturing and food and agriculture related businesses. Housing is a challenge. We are in the process to convert a former county jail in Kingston for workforce and affordable housing development.
Welcome Caution? It would be disingenuous to say that we welcome economic development without some caution. People have reservations, some more than others. We lie on the periphery of the NYC metro area and so we get to see some of the benefits and we get to see some of the issues that other communities face like increased traffic and housing costs. Our approach to economic development is a little different than how it was approached in the past. We need to be more strategic with opportunities and more active in supporting our communities.
Biggest fear in 2021? The economic recovery from COVID will be slower and more acutely felt in our small and micro-size businesses and so the real pain of this crises will hit those businesses in 2021 and ultimately, they will fail. Other concern is the exodus from NYC in residential market drives location
How long before you get to where you want the county to be? Probably never. It’s a continued process to try to build but being aware of what’s next. We are planning for Ulster County 2040 and it will be here before we know it.
decisions for large companies and while we certainly
Construction on the Ashokan Rail Trail. ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
29
Where do we go from here?
Todd Diorio, President of the Building and Construction Trades Council of Hudson Valley
Todd represents about 1,200 members in Laborers Local 17 and 8,000 members of the Hudson Valley Building Trades Council.
Impact of 2020?
end, big warehouses, highway and tunnels. I don’t know
We really didn’t have much of a drop off. We’re on
see a lot of building work.
target to have a decent year, maybe down 5 percent from previous year.
Low point for you in 2020? It was a scare factor for a while but, we’re a different
Projections for the next year?
breed, the building trades. Most of our guys just went to
Like I told the building trades, we’re going to have to grind
work every day and did what we had to do. Unfortunately,
it out. We can’t turn our backs on some of the smaller
in this business that we’re in, whether you’re working on a
projects that we might have done in the past. We don’t
bridge or a tunnel we’re at risk every day. I don’t think our
know how busy we’re going to be. That’s my concern
guys looked at COVID like some of the rest of the people
moving into 2021 and in 2022. I don’t really know.
in different industries. I’d say about 95 percent went to work. And when the jobs slowed down we were fortunate.
Concern next 5 years? I think there’s uncertainty right now. If they pass an infrastructure bill that would be huge. We can see another good run. That’s a big if. Fortunately for us we’re in a good location in the Hudson Valley. Projects are still going and the (Orange County) Partnership is showing properties
Guys still making a decent dollar federal stimulus, state money, my local has a supplementary unemployment fund. If we didn’t have the slowdown and shut down on Legoland and other projects we’d have a record year hour-wise.
and bringing in developers. There is talk about another
Biggest fear in 2021?
Amazon project in Dutchess county bringing in 640,000
I think it’s the same fear contractors have; I’m seeing
sq ft., legislation passed for $100 million VLT casino in
15-20 bidders on a police barracks project. Bridge job
Orange County and Foward86 seems to be moving ahead.
has 16-17 bidders. I think everyone is fearful of what’s
I have concerns with Danskammer getting approved. I
going to happen, not sure how much money is out there?
don’t know if there will be funding for school construction.
Whether or not there’s going to be funding for school
Do you see an impact from businesses leaving NYC? I see some companies looking at office space, warehouses are still huge in our area. I think the Hudson Valley, being so geographically close to the city helps us. The tunnel projects on both sides of the river, the Roundout and the DEP work in upper Ulster County have kept about 100 tradesmen busy. We just have to keep ensuring that we get
construction and the colleges. What’s scaring some people are the projects that should have been out to bid already have been delayed because people have been out of work. Engineers and architects had shutdowns. They can’t get surveyors to the site work because of COVID. Uncertainty everywhere just going to have to continue to plug away and find a way to make thing work.
the work. A lot of work seems to be more on the heavy 30
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
31
How to Increase Tax Rateables and Recoup Revenue Municipalities get tips from Economic Experts By Barry Lewis, Vice President of Communications for CCA
The Alliance for Balanced Growth wants to get a message across that commercial development is essential in order to increase tax rateables throughout municipalities in Orange County. During its hour-long virtual program in September, ABG, a standing committee of the Orange County Partnership, featured a panel discussion of experts in the fields of economic development, engineering, governmental affairs, commercial real estate and taxes to address the fiscal realities that all municipalities now face in the midst of a global pandemic.
32
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
How to Increase Tax Rateables and Recoup Revenue The purpose of the Alliance is to provide a forum to address
the applicant need to understand the time constraints that
and develop a unified voice on issues of mutual interest,
the municipalities require to go through the process.
and advocate for balanced growth. The Orange County Partnership, led by President and CEO Maureen Halahan, is active in creating industrial and office development.
He pointed to the State Environmental Quality Review Act (SEQR), and a handbook provided by the New York State Department of Environmental Conservation, affectionately
John Lavelle, commercial broker with Rand Commercial
titled the “The SEQR Cookbook” which was updated in
who co-chairs the Alliance for Balanced Growth with
2019 and provides municipal leaders with a step-by-step
Andrew Fetherston, engineer with Maser Consulting,
outline of the SEQR process. Also, the ABG guidebook,
explained that with communities facing the loss of revenue
“Understanding the Approval Process” which gives
and increasing bills, among the key ways to balance their
developers a flow chart of the approval process.
budgets is to increase the tax rateables. “If your tax roll is primary residential then it’s your homeowners who are paying the majority of your bills,” said Lavelle. He showed those on the Zoom meeting a slide that compared “Commercial Tax” vs. “Residential Tax” in Orange County. It illustrated that the total tax parcels in the county is only 7 percent commercial, but the total tax percentage paid of those parcels is 30 percent.
“COVID further complicated a very lengthy approval process,” said Fetherston who highlighted the new constraints. “Virtual meetings, digital submittals, varied rules on making presentations before the boards, limitations on the number of applicant representatives that can attend board meetings, staff working remotely,
Building the tax base Fetherston said for municipalities to build the tax base through balanced commercial development it is critical for officials to know their assets.
restrictions on meeting in person or reviewing agency filings in person and delays in receiving FOIL requests. The list goes on and on.”
utilities suitable for commercial and industrial facilities?”
Get balance sheets back in order Tom Weddell, former Managing Partner with RBT CPAs and Scott Oling, Partner with PKF O’Connor Davies said with falling sales tax revenues and fees, unexpected expenses due to the pandemic and a pause on state aid, municipalities need to re-think strategies because of COVID.
Along with knowing assets, Fetherston said it was
“Government is always late to the game on a downturn
He ran down a list of key resources that can give areas a competitive edge. “Are you on the I-84 or I-86/Rt. 17 corridor, the I-87 corridor, do you have commercial rail, water, sewer, high-speed communications, electric and gas
equally important that municipalities understand the time constraints the applicant is working within and conversely, ON THE LEVEL:
because the commercial sector feels the pain first,” said
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
continued... 33
How to Increase Tax Rateables and Recoup Revenue Oling, noting that in March there were reports of millions of layoffs nationwide. “But the effect of that, the drop in sales tax, in interest rates, in mortgage tax, all economically sensitive revenues, doesn’t filter through to government till months later. Municipalities are on catch-up, trying to now figure out how to deal with things that the private sector has delt with months earlier.” Conversely, he said when things start turning around, government is late to recover because it takes longer for sales tax revenues to filter back down. Oling said he has talked to
of the highest taxes and regulatory burden anyplace.”
clients about taking advantage of low interest rates and the opportunity it presents around
Seidman said that is why he’s so frustrated with the
the area of commercial development to help attract
pervasive, not-in-my-backyard (NIMBY) attitude where
businesses. “This low interest rate environment allows
residents insist, “no building at any time, of any kind and in
municipalities to borrow extremely cheaply and maybe
any place.” He said commercial rateables pay a greater share
do some of the infrastructure projects to help with future
of our tax burden and use less of our services, noting the
development.”
challenges that Amazon faced in attempting to build a $75
Need to educate the public Construction Contractors Association Executive Director Alan Seidman, a former longtime member and chairman of the Orange County Legislature told those attending the virtual program that he feels like he is preaching to the choir about the need for economic growth and well-paying jobs so that future generations can afford to live in New York. “Some of us were born here and chose to stay. Some moved here. I love this region and I’ve been a lifelong cheerleader. There are many features our location has to offer. Natural beauty of the mountains, valleys, farms, and the rivers. Great health care, shopping cultural
million distribution center in the Town of Montgomery that has created 300 construction jobs, will employ more than 800 people and over 15 years provide more than $29 million in phased-in taxes and additional revenue to aid education, emergency services and municipalities in the region. “Let’s bring in those ratables, not just any project but good projects that provide jobs,” said Seidman, who also heads the Brighter Hudson Valley campaign that aims is to educate the public about the needs and benefits of quality planned construction and the value of phase-in taxes. “People think we’re giving away tax dollars. That’s not the case. We need to be proactive.”
blewis@ccahv.com
opportunities. So much to offer, but we also have some For more information about the Alliance for Balanced Growth contact the Orange County Partnership, 845-294-2323. 34
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Thank you to all our heroes on the front lines who risk their lives to help save ours.
laborfirst.com
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
35
CLEAN AIR IS KEY STEP TO STAYING HEALTHY
Battling the Pandemic With COVID-19 cases
homes and hospitals the
peaking and winter
people there know that clean
weather forcing most
filters can make a difference
people to spend time
in filtering out the airborne
indoors, Lou Doro,
particles in the air that
vice president of Clean
contain the virus.” Doro says
Air Quality Services,
he’s seen an unprecedented
Inc. says more people
spike in the installation of
are taking preventative
ultraviolet air purifiers as a
maintenance inspections
way to reduce air pollutants.
to make sure their
“There is a concern that cold and flu season on top of
buildings and homes have clean air filters.
COVID will be a problem. People want to stay on top
“Clean air filters equal clean air,” says Doro, who is
this before it becomes an issue. Our concern is air flow,
also president of the Sheet Metal and Air Conditioning
keeping the filters and coils are clean and making sure
Contractors Nasional Association of the Hudson Valley.
there is enough outside air being brought into buildings.
“We’ve gone from quarterly maintenance inspections to in some cases every two weeks. In critical areas like nursing
36
ON THE LEVEL:
blewis@ccahv.com
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Staying the Course When It’s Difficult Remaining Steadfast Should Pay Off By Lon Birnholz The uncertainty in the investment environment has persisted, challenging investors to tune out the day-to-day noise that mostly doesn’t matter. It’s important to resist the urge to panic when tempted, and to stick with a well-considered long-term investment plan if your personal situation is mainly unchanged.
The Perils of Market Timing The recent presidential election was a great example of uncertainties eventually getting resolved, with outcomes generally better than the worst-case scenario. We fielded many questions from clients and friends about moving to the sidelines prior to Election Day, because they were fearful of a Democratic blue wave, a contested outcome, or civil unrest following a Trump victory. Now that it’s over, those who sold prior missed out on a double-digit increase in less than two weeks; what would they do now? History has shown that it is virtually impossible for investors to time the market successfully. To do so requires executing two distinct decisions: when to exit and when to re-enter. The re-enter part is particularly difficult because it would often have to be while the original conditions for exiting are still present. And the penalty for being late to re-enter by even just a few days can be substantial, as market inflection points are hard to predict and can be intense. If you were concerned about the election outcome and exited the market, you would have missed the powerful nearly 10 percent move in the 10 days after, when the worst-case scenario did not develop. ON THE LEVEL:
What a Democratic Presidency Mean There has been real change in the political environment with the election of Joe Biden as president. But control of Congress remains divided. Our study of market returns in the 1946-2019 period show that this mix (Democratic president, split Congress) results in the highest average annual return for investors, 16.94 percent. While this is not a guarantee of course, a backdrop of political gridlock can in fact be constructive for the market. Tax policy is likely to remain static at the current low rates, legislation will focus on getting people back to work safely and accelerating the current economic recovery via stimulus and infrastructure spending bills, conditions may become more conducive for international trade, and increased cooperation may generate “good enough” answers to societal and macroeconomic problems.
Next for the Economy and Investment World Progress against COVID is visible and evolving rapidly. The development of both therapeutics and vaccines have proceeded quickly, giving hope that life can return to (a new) normal, though probably not until mid-2021 at the earliest. Nonetheless, investors should be planning for the future. The Federal Reserve has reiterated its intention to keep interest rates low for a multi-year period, thus continuing an environment for near-zero fixed income returns. Providing that Congress enacts some constructive spending bills, the stage is potentially
Lon Birnholz is senior managing director of Matrix Asset Advisors, overseeing fixed income portfolio management and heads business development and client services activities. lon@matrixassetadvisors.com 212-486-2004
set for a good period of equity returns as the economy emerges from the COVID recession into expansion. Considering this framework, prospects for equities seem attractive especially vs. alternatives, and should be compelling for those with a longer investment horizon like participants in retirement plans. It seems hard to stick with a long-term investment plan when events are so dynamic, but this is always the case. Staying invested even as significant unexpected events develop is critical to long-term investment success. Especially for investment pools targeting a long-term need, like an IRA or 401(k) retirement plan, time is the investor’s friend. If your situation hasn’t changed materially, resist the urge to make knee-jerk, drastic changes to a thoughtfully designed financial plan, and instead stay the course, evolving the plan incrementally as your needs and the environment develop. An investment advisor can be a valuable resource for scenario planning or as a sounding board for your concerns.
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
37
38
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
39
Urgent Push for Rte. 17 Expansion Project Amidst Study Delays By Barry Lewis, Vice President of Communications for CCA State officials, labor and business leaders are concerned that any further delays to complete a planning study to expand Route 17 in Sullivan and Orange counties will jeopardize a project considered vital to support economic development, expand tourism in the region and alleviate road congestion, while at the same time create thousands of construction jobs that will support multiple trades and area businesses. The economic impact of the coronavirus in New York has placed financial constraints on any new major infrastructure projects in the state. Gov. Andrew Cuomo is projecting $59 billion of revenue shortfalls through 2022 and said services will be cut and taxes will increase without a federal relief package. But officials say it’s not so much the virus as it is the proposed timeline to finish a
“We are going to invent a vaccine in response to a global
critical Planning and Environmental Linkage study (PEL)
pandemic faster than they are going to complete a Route
of the expansion plan that could jeopardize any state and
17 PEL study,” said State Sen. James Skoufis after talking
federal funding for the project.
with state Department of Transportation officials who were
40
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Urgent Push for Rte. 17 Expansion Project Amidst Study Delays appropriated $5 million in April, 2018 to study the project that would add a third lane east and west on a 50 mile stretch of the heavily traveled corridor. It took the DOT more than a year later to issue a request for proposals for an engineering company to begin a scoping and preliminary review process, which includes identifying priority locations, conducting environmental assessments and starting the preliminary engineering process. The firm WSP was selected in early 2020. Skoufis says he’s been told a PEL study won’t be in until the end of 2021.
park just off Route 17 in Goshen. In 2013 a study funded
Skoufis said the DOT needs to push WSP to do a better job
with $1 million secured by U.S. Sen. Chuck Schumer, found
of moving along on their schedule.
that congestion on Route 17 will worsen and development
“The delay has potential and significant impact on our
in the region necessitates an additional lane/added capacity.
funding prospects for the expansion. The Biden administra-
Maureen Halahan, president and CEO of the Orange
tion’s two top priorities are a COVID stimulus bill, which
County Partnership and co-chair of the 17-Forward-86
he may get preempted on, and an infrastructure bill. We may
coalition explained that a $500 million investment will
have a massive federal infrastructure bill in the early part of
equal $1.5 billion in economic activity, as the state will
next year and God help us if that infrastructure bill’s funding
not just expand a road but generate businesses from the
is specific to shovel ready projects or projects that have their
construction. She said some communities that are seeing
PEL completed. Meanwhile our DOT here in New York is
increased traffic are looking to halt commercial growth.
still moseying around and adds six-to-nine months before
“Without this road under construction going forward, we
their PEL is completed,” said Skoufis.
are going to see more moratoriums.”
Michael Makarski, of the Engineers Labor-Employer
Greg Lalevee, Business Manager
Cooperative, Local 825 said everyone seems to get the
for the International Union of
need for the expansion project. But like Skoufis, he is
Operating Engineers Local 825,
concerned that a major infrastructure investment on a
explains that a good transporta-
national level could accelerate the timeline and that the
tion network will only enhance
study needs to be completed. “We are still in a COVID-influence environment. Will we have another 1-year patch program next year? We still have no clarity. We’re not just building a road but finding the best way to move people in two counties.”
Greg Lalevee
the economy in the region.
“There is tremendous opportunity to capitalize on building the infrastructure,” said Lalevee. “It can reinvigorate our capacity and allow us to support the truck traffic that will move goods in demand. And it’s a signal
The 17-Forward-86 coalition, made up of regional business
that Orange and Sullivan counties are open for business
and elected leaders have long lobbied the state to spend
and offer a great commute.”
$500 million for the Route 17 expansion project as part of the DOT’s 5-year Capital Improvement program, citing “significant investments” in the region such as the expansion of Woodbury Common in Harriman, the newly opened Resorts World Catskills and Kartrite water park outside Monticello and the soon-to-open Legoland theme ON THE LEVEL:
He adds, “We need to continue to demonstrate the value of the project. You don’t get the money if you don’t demonstrate the value.”
blewis@ccahv.com
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
41
When you want reliable professionals, you hire union carpenters.
The Kartrite Resort & Indoor Waterpark
There’s no greater asset in the building industry than a worker who shows up wellprepared and ready to go. It can mean the difference between a project that runs smoothly and a project that runs out of time. The Carpenters union recognizes this and has provided contractors with world-class quality and professionalism for 130 years – in addition to a can-do spirit to step up to meet any challenge. It’s not just a relationship, it’s a true partnership, and the entire building community benefits.
The North Atlantic States Regional Council of Carpenters. It’s time to build. To learn more, visit NASRCC.org
42
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
General Contracting and Interior Specialists P: (8 4 5 ) 4 5 4 - 1 1 9 2
F: ( 8 4 5 ) 4 5 4 - 1 1 9 3
Experience the Key Difference
http://www.keyconstructionservices.com Services: ~ General Contracting
~ Selective Removal
~ All Phases of Carpentry
~ Painting
~ Design
~ Insulation
~ Drywall Installation
~ Metal Framing
~ Acoustical Ceilings & Panels
~ Painting
~ Door & Hardware Installation
~ Vinyl Wall Covering
~ Insulation
~ Selective Removal
Find us on Facebook
~ Metal Framing
327-329 Main Street - Poughkeepsie, NY 12601
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
43
Raising Your Company’s Profile with Content Marketing By Josh Sommers
I have the benefit of providing marketing advice to companies in a lot of sectors, like healthcare, automotive, banking, education, manufacturing and many others. Marketing plans for these industries are always unique – requiring a customized approach for each client and sector. When it comes to the construction industry, I typically see limited marketing programs – even from larger companies. While the company principal or business development person doing outreach needs to be the top priority (and we know it works), there are other strategies to consider to promote your brand and make the phone ring.
Another key part of a content marketing program is promotion of your company via social media. Facebook, Instagram, LinkedIn and Twitter are great vehicles to share photos of your work, highlight your people and ensure the marketplace sees the type of projects you work on. For example, perhaps the market generally thinks of you for one area of work or only certain sized projects. However, if you are more diverse, social media posts are an outstanding way to show the variety of your projects and your broader scope of services. It’s a great tactic to ensure people don’t say “I didn’t know you did that.”
As a top-tier consideration, creating a strong content development program will ensure industry decision-makers and the public at large know your name, what you do and what you stand for, such as quality.
One place your content should live is on your website. Develop press releases, project highlights and other dynamic information so that your website isn’t simply an online brochure. When prospects check you out online, you’ll appear to be a vibrant company with lots of activity. Use this type of content for your website to celebrate wins – client signings, project milestones, staff promotions and certifications, etc. Additionally, be sure to leverage photos and/or videos for this content.
44
ON THE LEVEL:
Social media channels also provide a platform to show your company personality and community involvement. Creating posts showing a nonprofit you support, photos of a safety training or a topping off of a building gives the public more of a sense of who you are. It’s also great to record videos for your social media. For example, grab a smart phone and talk about the project you are working on today, or discuss a unique aspect of the job.
Josh Sommers is President and CEO of Focus Media, Inc., a strategic full-service marketing, public relations and advertising agency. He can be reached at 845-576-2213 or at josh@focusmediausa.com.
When it comes to content development, a public relations program will supercharge your marketing program. Seek a professional to develop press releases and secure news media coverage for your company. The news media provides third-party credibility for your company’s brand and message. A good public relations professional should also position you as a thought leader to the media. So that the next time a story is being written about the construction industry or your particular specialty, your public relations partner should work to have you as a trusted expert for the reporters writing these stories. This type of thought leadership will give you the opportunity to analyze trends and be the person/company journalists think of when they need a source. Content marketing is an affordable way to raise your profile so that your company is thought of more often when new projects seek construction partners. Plus, it will build long-term awareness and brand equity for your company in the marketplace.
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
IRONWORKERS Local Union 417 Newburgh, NY 583 Route 32 Wallkill, NY 12589 Telephone: 845-566-8417 Fax: 845-566-8420 www.ironworkers417.org
Michael Gaydos, Business Manager/FST Matthew Stoddard, President/BA Michael Dunn, Vice President Keith Eisgruber, Recording Secretary
EXECUTIVE COMMITTEE Brian Fries James Gardner III James Hubbard James McGrath John McGuire
BOARD OF TRUSTEES Mark Gaydos Christopher Kunze Richard Schroder
BUILDING THE HUDSON VALLEY SINCE 1927
continued... ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
45
“They work with the guys they’re most likely going to rescue.” Laborers’ Local 17 train for confined space rescue operations By Barry Lewis, Vice President of Communications for CCA
46
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
“They Work With The Guys They’re Most Likely Going To Rescue”
A journeyman from Laborers’ Local 17 is carefully lowered down a manhole to rescue an injured worker.
He adds, “You need to have a combination of confidence and control but most importantly, the ability to get things right. It’s better to get it right than to do it fast. Sometimes you have to slow down to go faster. Repetition, repetition,
A half dozen laborers stand around the perimeter of a
repetition is the only way to get good at this.”
rescue tripod. One worker shouts out commands to the
About 2.1 million workers enter permit confined spaces
team while communicating with the laborer who slowly makes his way through the cramped 48-foot-long tunnel, guided only by the light on his helmet and the cries of his fellow worker waiting to be helped. After moving through the tunnel, he reports that he has safely secured the victim. There is clarity and calm as the workers move as one cohesive unit. Someone is on the safety line, another on the main line. The communication is minimal and direct. “Watch the slack! Clear the rope! Talk to him!” They are
annually. According to the National Institute for Occupational Safety and Health (NIOSH), approximately 60 percent of confined-space fatalities are rescuers, and the Occupational Safety and Health Administration (OSHA) reports that when multiple deaths occur during a rescue, the majority of the victims are “would-be” rescuers. And for every fatality due to oxygen-deficient and/or toxic atmosphere, two non-fatal injuries occur, one of which requires hospitalization. More often than not, those
more reminders than commands. There needs to be trust
additional injuries are to rescuers.
and teamwork for the men in the tunnel and those around
While these NIOSH statistics may slightly differ over the
the tripod.
years, the reality is that the hazards of confined space entry
Minutes later the team hoists the victim who is secured to a patient packaging device for the safe remove out of
are the same. Workers are still seriously injured or die in permit required confined spaces.
the manhole and then focus their attention to bring up the rescuer. It’s the final rescue on a late October night for the half dozen journeymen from Local 17 who are finishing the required yearly 16-hour refresher Confined Space
INVESTIGATIONS OF CONFINED SPACE INCIDENTS:
Rescue class at the trades’ training facility in Newburgh.
• 85% of the time a SUPERVISOR was present
A year ago the journeymen, each of whom has no less
• 29% of the dead were SUPERVISORS.
than a dozen years’ experience, had to complete the initial 40-hour training class. For both the initial training and the refresher course, the journeymen spend several hours in a classroom literally learning the ropes, reviewing the
• 31% had WRITTEN Confined Space Entry PROCEDURES • 0% used the WRITTEN PROCEDURES
different types of knots used depending on the rescue
• 15% had Confined Space TRAINING
situation. There is also training on air monitoring, Personal
• 0% had a RESCUE PLAN
Protective Equipment (PPE), proper ventilation, hoisting
• 60% of “WOULD-BE” RESCUERS died
and rigging.
• 95% were AUTHORIZED by supervision
“Some of the equipment has gotten newer, nice, and a
• 0% of the spaces were TESTED prior to entry
little easier to work with, but the actual principals have all
• 0% were VENTILATED
stayed the same,” explains Rich Chiaramonte, a retired New York City firefighter with a special operations unit who now teaches confined space rescue classes. “It’s all
Source: National Institute for Occupational Safety and Health
basic mechanical advantages, which is what these guys are taught throughout other classes.” ON THE LEVEL:
continued... W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
47
“They Work With The Guys They’re Most Likely Going To Rescue”
Related Deaths/100 Reasons Most Common Hazard TypesMost Common Hazard Types Related Deaths/100 Reasons for Entry into Confined Spaces in Confined Space Death in Confined Space Death for Entry into Confined Spaces
Related Deaths/100 Reasons for Entry into Confined Spaces 6% 4%
Most Common Hazard Types in Confined Space Death
4% 6% Retrieve Objects
Firefighting 15%
15%
Cabon-Monoxide 77%
Routine Maintenance 61%
77%
Not Specified
61%
Repair 23%
52%
23%
Hydrogen Sulfide
Other Gases
52%
Inspection 41%
36%
41%
36%
“We’ve had guys who have opted out of the program
million project that carries water from Ashokan Reservoir
because it’s not for everyone. Especially when you start
in Ulster County to Kensico Reservoir in Westchester
talking about rescue. There’s a lot of stress going on
County. For both projects there is a confined space rescue
because they work with the guys they’re most likely going
team at the sites.
to rescue. It makes it even harder,” says Chiaramonte.
“It kind of broadens your horizons as far as the kind of
For permit required confined space, OSHA requires
jobs you’re able to take,” said John Quick of Port Jervis as
employers to identify hazards in confined spaces, test
the training session was wrapping up. A journeyman for 12
the air prior to entry and during entry, keep the space
years, he said you usually don’t think of labor when you
ventilated, have the proper safety equipment for entry
talk about rescues. “We’ve come a long way as far as what
and exit and rescue, and have procedures for summoning
we do and just the broad spectrum that we cover. This
proficiently trained rescue teams who can respond in a
training opens up doors as far as career opportunities and
timely manner.
being able to get on jobs.”
Mark Casey, Assistant Training Director for Laborers’
He looked back at his fellow journeymen gathering
Local 17 says about five years ago OSHA added Subpart
up the equipment and taking down the rescue tripod.
AA to its manual, citing the need for a rescue training in
“You also have the potential to be on a job site and save
the construction industry. Local 17 works in conjunction
someone’s life.”
with Laborers’ Local 60 in Westchester County.
bslewis@ccahv.com
“In other jobs if you’re working in a confined space their rescue it’s usually an outside entity like a fire department or ems who usually gets the call. We argued the fact that by the time you call somebody, even if there is an immediate response, it’s too late. Why don’t we have guys trained who are down there on site to do this,” said Casey. Laborers are currently in the 2.5-mile long tunnel 600 feet beneath the Hudson River from Newburgh to Wappinger as part of the $1 billion project to fix the leaking Delaware Aqueduct that is part of the New York City water supply
> WATCH THE VIDEO
from the Catskill reservoirs. At the same time, they are
WWW.CCAHV.COM/CCA/LABORERS-TRAIN-FOR-CON-
also doing work inside a portion of the aqueduct for a $158
FINED-SPACE-RESCUE-OPERATIONS/
48
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
BARRETT INC.
ROOFING & SHEET METAL CONTRACTORS 106 Mill Plain Road, Danbury, CT 06811 www.barrettroofing.com
EPDM Roofing TPO Roofing PVC Roofing Shingle Roofing Slate Roofing Tile Roofing Hot & Cold Modified Bitumen Roofing Hot & Cold Fluid-Applied Roofing & Restoration Roof & Wall Coating Systems Green Roofing Waterproofing Paver & Pedestal Systems Metal Roofing Metal Wall Panels and Related Faรงade Systems Architectural Sheet Metal Fabrication & Installation
Service and Maintenance
Barrett offers a full line of commercial roofing services. Quality and Service since 1934!
Please Call or Email for an Estimate (203) 744-2780 estimating@barrettroofing.com
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
49
International Union of Operating Engineers Local 137
JEFF LOUGHLIN WAYNE HELLER JAMES SASSO JOHN MCGILL JOE SCHNEIDER DANIEL FENYO MICHAEL MILLER
BUSINESS MANAGER PRESIDENT VICE PRESIDENT/BUS. AGENT RECORDING CORR. SECRETARY TREASURER FINANCIAL SECRETARY BUSINESS AGENT
Executive Board John Belardi – Ronald Burgess – Rocco Miceli – Michael Miller David Ryan - Rocco Sanseverino
1360 Pleasantville Road Briarcliff Manor, NY 10510 (914)762-0600 50
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
51
NEW MEMBERS
Anatalek & Moore Insurance Agency is a full-service insurance and risk management agency based at 340 Main Street, Beacon, New York. They offer commercial and personal insurance solutions in the Hudson Valley as well as the New York Region and beyond. Vincent Lemma, the firm’s president can be reached at 845-831-4300 or vlemma@antalek-moore. com For more information www.antalek-moore.com.
Broadfield Insurance, a member of PC Foy, have been providing insurance to the region for 155 years. Specialists in personal insurance, construction, cyber-liability, technology, agriculture, restaurant, municipality, real estate, professional-liability, and garage/automotive industries. Contact managing partner, Richard Savino at 845-986-2211 or richs@broadfieldinsurance.com. For additional information www.broadfieldinsurance.com.
Delaware Engineering, D.P.C., founded in 1987 is a professional engineering firm with more than 60 engineers, scientists, planners and technicians dedicated to the success of every project. Their geography spans from New York’s Capital District throughout the upper and lower Hudson Valley through the Adirondack and North County Region to the suburbs north of New York City through the Catskill Region to the State’s Southern Tier. Contact John Brust in their Albany Office at 518-452-1290 or jbrust@delawareengineering.com. For more information www.delawareengineering.com.
Nadoka Luxury Cleaning, LLC provides specialized cleaning to reduce the spread of illness causing germs in offices, medical facilities, healthcare buildings, fitness centers, health clubs, daycare centers and educational facilities. Richard Aidoo will customize a cleaning schedule to meet your needs – he can be reached at 845-201-0080 or nadoka.llc@gail.com.
MILESTONES
20 Years as a CCA Member: Stacey Braun Associates, New York, NY www.staceybraun.com
52
ON THE LEVEL:
20 Years as a CCA Member: RAL Supply Group, Middletown, NY www.ralsupply.com
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Printeks Construction Documentation Services provides documentation services that are essential to support today’s building professional. Their services include wide format printing and scanning, 3D laser scanning, 360° photo and video documentation, 3D modeling and 2D drafting services and construction administration services. Contact Terry Smallin at 845-294-0877 or TS@printeks.us.com. For more information visit www.printeks.com
Sullivan Construction Group, LLC is a concrete contractor specializing in concrete placement and finishing, high tolerance concrete floor finishing, laser screeding, paving (curbs and walks) for commercial, industrial, and institutional construction. By utilizing their experience and the combined knowledge of their expert team of estimators, project managers, site super-intendents, and carpenters to deliver building programs that are on time and under budget throughout the Tri-State area. Contact Martin Berenson for more information at 845-640-2200 or martin@sullivancg.com.
TDX Construction Corporation, founded in 1980, specializes in the management of complex projects for public and private institutions. TDX offers a full range of pre-construction and construction services and has a significant construction management presence in the tri-state area with more than 150 professional staff managing ongoing projects valued at over $900 million. The firm’s president, Joseph Fitzpatrick can re reached at 212-279-1981 or jfitzpatrick@tdxconstruction.com. For additional information www.TDXConstruction.com
Tri State Associated Services, Inc. offers the most comprehensive graphic communications solutions in the Tri-State region. Specializing in design, print, mail, sign and promotions, call Frank Campagna for your printing and publishing needs. Frank is at 845-331-1571 or fjc@ tsasinc.com For more information www.tsasinc.com.
20 Years as a CCA Member: RiverSide Bank
20 Years as a CCA Member:
a division of Salisbury Bank & Trust, Poughkeepsie NY
Taylor Montgomery, LLC, Montgomery, NY
www.salisburybank.com
www.taylor-montgomery.com
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
53
54
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Laborers Local 235
Skilled Laborers Quality Workmanship Safety & Dependability Dario Boccarossa
Business Manager/Secretary Treasurer
914-592-3020
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
55
SPECIAL INSPECTIONS AND MATERIALS TESTING Asphalt • Concrete • Soils Masonry • Steel • Deep Foundations CONSTRUCTION PHASE MONITORING AND ENGINEERING Vibration • Noise • Deformation Condition Surveys • SOE Design LAND SURVEYING Construction Layout • 3D Scanning Mobile LIDAR ENVIRONMENTAL SERVICES ACM and Lead • Air Monitoring End Sampling and Soil Disposal ENGINEERING Geotechnical • Civil • Structural MOUNTAINVILLE, NEW YORK 800.829.6531 www.tectonicengineering.com
RBT CPAs, LLP is your solution for all of your accounting, tax, and assurance needs. Make sure you are operating at peak financial efficiency by leaving your financial statements, internal auditing, and overall business analyses to us. Offices in Newburgh, Poughkeepsie, Wurtsboro & NYC Call (845) 567-9000 www.rbtcpas.com Over 55 Years of Personal Attention & Solutions for Your Professional Financial Needs 56
ON THE LEVEL:
Serving the legal needs of the business community in the Hudson Valley for more than 75 years for profit and not-for-profit corporations, real estate, medical services, construction, trusts and estate planning, and local government 655 Little Britain Road New Windsor, NY 12553
845-562-9100 www.riderweiner.com
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Iron Workers Aid Tubman Journey to Newburgh By Barry Lewis, Vice President of Communications for CCA Members of Iron Workers Local 417 donated their time and expertise to help deliver and install a bronze statue of famed abolitionist and political activist Harriet Tubman to the plaza of the Newburgh Free Library in October. Local 417 Business Manager Mike Gaydos, left, and Local 417 President Mike Stoddard, right, help Vice President Michael “Doc� Dunn maneuver the grader, taking the 9-foot-tall, 2,400-pound statue off a flat-bed trailer and slowly carrying it to the front of the library and placing down before a cheering crowd. The delicate move and placement of the statue took nearly 30 minutes to complete. Tubman led enslaved people to freedom using
> WATCH THE VIDEO: https://www.ccahv.com/cca/iron-workers-bring-tubman-statue-to-newburgh-library/
the Underground Railroad.
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
57
Local 754 Rockland County, NY Stephen Reich Business Manager Kenneth Lewis President
Lorenzo Henderson Vice President
Kevin Wagner Recording Secretary
Robert Bonomolo Secretary Treasurer
Bradley Ashford Sergeant at Arms
Executive Board Members: Joseph Coskey Brian Barbera, Jr.
215 Old Nyack Turnpike Chestnut Ridge, NY 10977 Phone 845-425-5073 www.local754.com
58
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Dealing With Delayed Payments During a Pandemic By Susan Howell
Remember the good old days when you completed a construction job without a hitch and got paid on time for your work? Yeah, neither do we. Historically, high upfront costs and razor-thin margins have made it difficult for contractors to pay what they owe to their subcontractors and suppliers before they’ve been paid themselves. The result? Everyone has to wait to get paid until job requirements are met and obligations are fulfilled. The 2020 National Construction Payment Report found 80 percent of companies surveyed spend a significant portion of their workweek chasing down payments and only 50 percent of construction businesses say they receive payment within 30 days of invoicing. Today, many contractors are faced with the added stressor of huge payment delays from current clients who claim they can’t pay because of the pandemic. We know, this scenario sounds like the cherry on top of an already problematic year. But don’t panic, there are steps you can take to protect your business before you fall into a messy financial and legal battle.
Contractors should review submissions for payment Spend additional time upfront to ensure language is concise, and that the backup your client is requesting is clearly stated. A well-crafted
ON THE LEVEL:
contract will eliminate confusion about payment terms and enforce your payment rights. The contract should specify the scope of the work, payment schedule, and legal repercussions of late payments. Remember: your lien rights are designed to protect you. For over two centuries, the mechanics lien has been empowering materials suppliers, contractors, subcontractors, and other construction stakeholders with the most effective weapon they can wield against delinquent, non-paying clients. You want to get liens filed on anything that’s unpaid or late. A more proactive move is to ensure your lien rights are protected at all times as you get more work.
Consider converting to digital invoicing and payment solutions Taking advantage of technology helps streamline the entire process and often means contractors get paid faster. Every second that passes after a job is completed is time where there is a receivable with no cash flow. When customers pay with the click of a mouse instead of waiting a week for the mail and checks to clear, your business is generating cash faster which allows you to focus more energy on growth and leads and less on covering bills and payments.
Susan Howell, CPA, is a partner with RBT CPA’s and is a leader in the firm’s Construction Industry Practice. She can be reached at 845-485-5510 Ext. 227 or at slhowell@rbtcpas.com.
Increase your cash cushion as much as possible Obtain working capital loans, monitor new opportunities for SBA programs and new stimulus money. Try to get credit terms extended with suppliers and research third parties that offer longer credit terms for suppliers. At RBT, our goal is to help you feel empowered to get what you’ve earned and that means preparing for unpleasant obstacles down the road before they strike. When you walk on to a construction site, there is an entire community of stakeholders on the job. Every person who touches your business is impacted by COVID-19 in some way, and we know you are in a unique position. You’re tasked with juggling a lot of moving parts and personalities at play with the end goal of getting paid for the hard work your team has completed. While illnesses, quarantines, and local regulations have exacerbated an existing industrywide issue, we hope you can use some of this advice to better prepare yourself for the pitfalls ahead.
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
59
FROM THE OFFICERS & MEMBERS OF LOCAL 21
BUSINESS MANAGER
RON DIAZ
BUSINESS AGENTS THOMAS CAREY SEAN CAREY JOSEPH DULLEA THOMAS O’BRIEN PRESIDENT John Stalker
VICE PRESIDENT Don Calabrese
EXECUTIVE BOARD Nick Cassetta Joe Molella Mike Sweeney Mike Zottola Paul Abbatello
FINANCE COMMITTEE James Buckley
Paul Cancellaro
EXAMINING BOARD Larry Muir Frank DeJesus John Ellis Sean Nickerson INSIDE GUARD Anthony Maselli
60
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Kokolakis Contracting is honored to be a part of the mission to collect, preserve and share the stories of Purple Heart recipients.
National Purple Heart Hall of Honor
YOU DREAM IT WE BUILD IT
UPGRADED EXHIBITS
GRAPHIC DISPLAYS
Thank you to our subcontractors, who were an integral part of this project. Advanced Polished System AFI Glass & Architectural Metal, Inc. ASI Signage Innovation Cascade Cleaning Complete R&R, Inc. 2141 K Plastering Street Northwest Cooper Corporation #808, D&J Concrete Corporation Washington, DC 20037 Dillon & Semenovich, Inc. ERSI Grundman Mechanical Systems Hi-Tech Steel Inc. eMail: mail@websitename.com
John Herbert Company Keller Painting Corp LVC Interiors Nuvo Group Construction, Inc. Orange County Ironworks LLC S.A. ComunalePhone Co., Inc. Spearhead Construction, LLC 123 456 7890 United Roofing & Sheet Metal Upstate Electrical, LLC Villa Construction, Inc.
ARTIFACTS
Thank you to our Kokolakis Contracting project team, who oversaw this project with care and dedication. Tom Ratliff, Vice President Butch Mulligan, Superintendent Mike Lupo, Project Executive John Lazoglou, Assistant Superintendent Sean Thornton, Project Manager Wendi Gunnell, Project Accountant Sam Alexis, Assistant Project Manager Charlie Kruger, Labor Foreman
Web Site: www.websitename.com
We are additionally grateful for the members of our Kokolakis Contracting family who have served our nation. Aaron Burton• Michael Burton • Rob Lee Chris Lorenzoni • Jay Manasco • Lewis Ouzts
SNYDER ZACK
KOKOLAKIS CONTRACTING | 264 West 40th Street, Suite 601, New York, NY 10018 | 212-563-0453 | jkokolakis.com ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
61
DANSKAMMER EYES EARLY 2021 FOR STATE REVIEW OF PLANT PROJECT By Barry Lewis, Vice President of Communications for CCA Danskammer Energy officials are hoping in January for a “complete” designation from New York State on its application and thus start the year-long official review period for a proposed $500 million gas-fired power plant in the Town of Newburgh. The company recently submitted responses to additional questions from the State about its Article X application.
Danskammer Energy’s vice president for public affairs.
The State has 60 days to review those responses and can
“But I cannot say for sure that any of the “deficiencies”
either deem the application complete or ask questions
(questions) we have gotten that have led us to not have a
for clarification. If complete, both public hearings and
complete designation have anything to do with COVID.”
comment periods will open. It’s unclear how the state will handle that process during the pandemic or if the crises has
If the application is accepted and Danskammer receives it’s
slowed the application process.
certificate to begin work, construction on the 535-megawatt
“I’m sure there has been an impact because no one on their
be roughly 2 ½ to 3 years and will employ some 450 highly
end or ours was in the same office to discuss aspects of
skilled union employees and create more than $50 million in
our project over the last 9 months,” said Michelle Hook,
revenue over 20 years to local governments.
plant would begin in early 2022. The construction phase will
A full service law firm serving businesses and business owners in the Hudson Valley and Capital Region since 1971
CONSTRUCTION SERVICES
CORPORATE SERVICES
Contract Drafting, Negotiation and Review AIA, Consensus Docs, EJCDC, State/Agency Specific Insurance Review (IRMI Certified)
Acquisitions, Sales and Mergers
Construction Dispute Resolution Payment Disputes/Delay Damages Wrongful Termination Mechanics Liens and Payment Bond Claims
Financing
MWBE/DBE Certification and Compliance Utilization Plans, Waiver Requests
Trademarks and Copyrights
Contact Michael Catania at mcatania@cmrlaw.com
Business Succession Planning and Estate Planning
Commercial Transactions and Leasing Employment Law and Regulatory Compliance
Corporate Governance Contact Michelle Rider at mrider@cmrlaw.com
CMRLAW.COM• 1 CORWIN COURT NEWBURGH, NEW YORK 12550• (845) 565 - 1100 62
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
How does the Workers’ Compensation System Decide What is Fair to Pay to an Injured Worker? By Barry Lovell
When the workers’ compensation system was implemented early in the 20th century, New York adopted two overlapping methods for determining awards to workers. In 2007, the legislature made major modifications to the system, but left intact the different methods. In the past two years, New York State’s Appellate Division, Third Department, issued several decisions that look to fundamentally change the way in which the reformed methods interact with one another. For injuries to specific body parts like the hand or foot, Section 15 of the workers’ compensation law provides for what is commonly referred to as schedule loss of use awards. The law designates each body part as worth a certain number of weeks. For example, an arm is worth 312 weeks while a leg is worth 288 weeks. A 10 percent loss of the leg would pay 28.8 weeks of benefits. Doctors use the Workers’ Compensation Board guidelines to testify as to the percentage loss of use. Workers’ Compensation Law judges use this medical testimony to make awards to workers. The law, however, recognizes that some injuries do not lend themselves to this type of classification. Injuries to the back, or to multiple body parts that are particularly severe, receive awards of unscheduled benefits. Prior to the reform, claimants who had not returned to work and who were found to be permanently totally or partially disabled, received lifetime awards up ON THE LEVEL:
to two-thirds of the worker’s average weekly wage, subject to a maximum of two-thirds of the statewide average weekly wage—currently $966.78. In 2007, New York reformed its system and imposed caps on the duration of unscheduled awards to permanently partially disabled claimants. Permanently totally disabled claimants still receive lifetime awards. Awards now range from 225 weeks for 15 percent or less, to 525 weeks for 95 percent or more. Prior to 2007 these percentages were based upon the medical degree of disability, affecting the amount of a weekly award but not how long the award was paid. Post-reform, the law judge uses the medical testimony in combination with other testimony to determine the Loss of Wage-Earning Capacity (LWEC) percentage, which now determines both the size and duration of the award. LWEC considers non-medical factors like the age, language skills, or education level of a claimant. One of the key differences between the types of awards is that scheduled benefits are paid regardless of whether an employee returns to work. An employee with a leg injury could receive workers compensation benefits for the time that they were out of work, return to work, and then still get a check for thousands of dollars. Unscheduled benefits are paid only when an employee is not working or has not returned to work at their full salary. What happens when
Barry Lovell is the President of Lovell Safety Management Co., LLC. He can be reached at 212-709-8600 or blovell@lovellsafety.com.
workers have both schedulable and unschedulable injuries? Up until last year, case law precluded an award for schedule benefits when an employee was eligible for unscheduled benefits. Two recent decisions determined that an employee eligible for unscheduled benefits who returns to work at full pay can now receive benefits for their schedulable injuries. The latest decision, Matter of Arias v City of New York, published at the end of February of 2020, has produced a rising tide of litigation, as claimants who are currently working now seek additional awards. We now find ourselves at a perplexing moment, where many claimants who are working at their pre-injury salary are classified as having lost wage earning capacity, even though they haven’t lost any actual wages. These same claimants, the court has ruled, now qualify for additional compensation awards. Some argue that this outcome is fair, even if the process itself is now self-contradictory. All, however, agree that this circumstance guarantees more litigation.
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
63
LEADERSHIP OF THE ASSOCIATIONS THE 2021 SMACNA OF SOUTHEASTERN NY BOARD OF DIRECTORS Sitting, from left, Secretary Steve Mulholland, Treasurer Dan Harden, Mark DiPasquale, Board President Lou Doro Standing, from left, CCA Executive Director Alan Seidman and William Haskell Missing from photo: Vice President James D’Annibale, Michael Briggs, Frank Ferrucci, Walter “Chip” Greenwald and Dennis LaVolpa, Jr.
On behalf of the SMACNA contractors and board of directors, I would like to express the appreciation we have for the CCA staff and the constant communication that has kept us informed throughout this turbulent year. We all share the same feeling that we have not experienced anything like the events of this past year in our lifetime, nor do we want to ever experience them again. The beginning of the year looked very promising as the economy was doing well, the mild winter contributed to a great start to the building season and many local building projects were getting approved or were under way. 2020 looked like a great year to be in business in the tri state area and we were all looking forward to golf outings, weddings, family get togethers and enjoying some fun times. Then life changed. Lou Doro Board President
Without rehashing the good and bad decisions that were made by our government, I would like to believe that we all learned something this year and will use those lessons to make our businesses and families more resilient in times of strife. We can no longer have this myopic view in our industry as competition from out of state, along with competition within our state, looks to further degrade the market share of the decent, local contractors that provide a good, living wage to thousands of hard-working and skilled residents in our area. The SMACNA contractors and SMART Local 38 leaders recently held a joint meeting to discuss ways to regain the market share we have lost and how to prevent losing it 64
ON THE LEVEL:
again when we do get it back. It was a great meeting that put labor and management on the same team, and we all look forward to more meetings like this. Thankfully, many of our contractors survived without too many bruises this year but we need to work together to prevent losses in case a second or even a third pandemic wave threatens the economy. Most of our contractors have some type of service entity to them that is fairly recession-proof but we still need to maintain the customer relationships that we have and do whatever we can to retain their loyalty to us. I would encourage all of you to go beyond your daily routines to let your customers know you care for them and appreciate their trust in you. While on that note, let your families, employees and friends know how much you care for them as we share our struggles together and remember that we live better as a team, not as foes. We are looking forward to 2021 being a better year for our business by focusing on the service to our customers. Exploring solutions to help them increase efficiency, reliability, safety and comfort for their staff and their customers will help them retain loyalty and allow them to be profitable. As you work with your customers do not be hesitant to give a little more of your time or your talents as you will see fruit blossom from this in trust and confidence with your organization. I wish all of you and your families a very safe and happy holiday season and that you have a prosperous new year. Be well, my friends! Lou Doro
Lou Doro
Vice President, Clean Air Quality Service, Inc. President, SMACNA SENY
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
THE 2021 CCA OF THE HUDSON VALLEY BOARD OF DIRECTORS
Mark Stier 1st Vice President
Mike Adams 2nd Vice President
David Campbell Secretary-Treasurer Dan O’Kane Board President
Alan Seidman Executive Director
Ron Bloomer
Scott Dianis
The Construction Contractors Association, like all Americans, looks forward to the deployment of a vaccine that will end the physical and financial strain from the coronavirus pandemic and allow us to again live free from fear and to see businesses open without any health risks.
It will be great for everyone to get back to normal as we move into 2021. We as an organization are poised to participate in the recovery and support our communities as we always do. The future is bright and a release of pent up demand for in person activity will drive the recovery.
Ira Gold
Jay Harrison
Joseph Jerkowski
We will continue to provide skilled local labor through our network of contractors and their employees. Remembering that local contractors support local businesses. While 2020 has been a challenge for all, some much more than others, there is an excitement building as we put our lives and businesses back together.
Robert Kaehler
James McGowan
Joseph Perez
On behalf of myself, as well as all the contractors in the CCA, we are honored to be part of the rebirth in 2021. Dan O’Kane
Dan O’Kane Paul Taphorn
Alfred D. Torreggiani
ON THE LEVEL:
Charlotte Van Horn
President, O’Kane Enterprises, Ltd. President, Construction Contractors Association Board of Directors
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
65
66
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Dept. of Labor Proposes New Rule on Employee Classification By Michael E. Catania Misclassification of employees as Independent Contractors (IC’s) has long troubled the construction industry, resulting in government audits and expensive litigation. +At the Federal level, the U.S. Department of Labor’s (DOL) existing rules are seen as favoring employee versus IC classification. The DOL has proposed a new rule dealing with classifications under the Fair Labor Standards Act (FLSA) to change this, revising its interpretation of an IC so as to “promote certainty for stakeholders, reduce litigation, and encourage innovation in the economy.” Under the FLSA, employers must pay nonexempt employees federal minimum wage and overtime. These requirements do not apply to “independent contractors.” Unfortunately, the Act does not define the term “independent contractor.” Instead, the DOL previously established a multifactor test to be used for such determinations. The test centered upon the concept of “economic dependence.” Workers whose income was generated solely from a particular employer would typically be classified as that employer’s employee, and not an IC, under the FLSA. The DOL has determined that this test lacks “focus and has not always been sufficiently explained by courts or the Department.” It has proposed a new test, one it claims has a “more employer friendly approach” and shifts the focus from “economic dependence” to “economic reality.” It has 5 factors. The first 2 are defined as “core factors,” ON THE LEVEL:
each of which will be given far more weight than the others. If adopted, this new test would be the DOL’s “sole and authoritative interpretation” of classification under the FLSA. The factors are: • The nature/degree of the worker’s control over the work; • The worker’s opportunity for profit/loss based on initiative or investment; • The amount of skill required for the work; • The degree of permanence of the working relationship; and • Whether the work is part of an integrated unit of production.
Will this help the employer? Is this proposed rule a “more employer friendly approach?” That remains to be seen. However, the introduction of the 2 “core” factors does give some needed clarity to the analysis and could lead to fewer misclassifications. Regardless, the rule would apply to classifications under the FLSA only. New York laws, such as the Construction Industry Fair Play Act, will not be impacted. NY construction workers will continue to be classified as employees unless they meet Fair Play Act’s strict 3-part test, i.e., that they are 1) free from the employer’s control/direction; 2) perform work that is not part of the usual work performed by the Employer and 3), are an independently established business.
Michael Catania is a Managing Partner with Catania, Mahon & Rider, PLLC and head of the Construction Practice Group. mcatania@cmmrlegal.com
Update on OSHA Reporting For COVID-19 Cases Employers generally have 24 hours to report work related incidents that result in hospital admissions. With COVID-19 cases, OSHA measured the 24-hours from when the employee was confirmed to have contracted Covid-19. This led to some confusion and OSHA recently updated its regulations to give further guidance. The new regulations address questions such as:
Q: If an employee is exposed to Covid-19 on a Monday, but is not admitted to the hospital until a week later, dose the employer still have to report?
A. No. Per 29 CFR 1904.39(b)(6), employers only have to report Covid-19 hospitalizations that occur within 24 hours from the work-related exposure.
Q: If an employee contracts Covid-19 within the 24-hour time frame, how long does the Employer have to report it?
A. 24 hours from when it becomes aware of the employee’s in-patient hospitalization (assuming it is due to a work-related COVID-19 exposure). The above applies to reporting only and does not change an employer’s OSHA obligations as to recording work-related COVID-19 cases per 29 CFR 1904.4(a).
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
67
North Atlantic States Regional Council of Carpenters
LOCAL 279 Serving Westchester, Rockland, Putnam, Dutchess, Orange, Ulster, Sullivan and Columbia Counties 10 Corporate Park Drive, Suite A, Hopewell Junction, NY 12533 Phone (845) 440-1024 Fax: (845) 202-7398 www.carpenterslu279.org
EXECUTIVE BOARD President – James Malcolm Vice President – Edward Cooke
Treasurer – Matt Ross
Recording Secretary – Scott Smith
Financial Secretary – Pedro Galaviz
Warden – Stephen Jones, Jr.
Conductor – Edmond Streich
Trustees: Danny Durham, Augusto Marciante, Kevin Smith
68
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
EST. 1977
LaFarge North America Ravena, NY
Kartrite Indoor Water Park Monticello, NY
Butter Hill Water System New Windsor, NY
General Construction ● Design Build Concrete Contractors ● Tilt-Up Construction Clean Room Installations Commercial ● Industrial ● Institutional Health Care ● Municipal
Watchtower World Headquarters Warwick, NY
Washington Lake Filtration Plant Newburgh, NY
New Paltz Middle School New Paltz, NY
“Building Quality Projects with Local Skilled Tradesmen”
1540 Route 55 PO Box 10 LaGrangeville, NY 12540
www.darlindassociates.com
ON THE LEVEL:
Phone: (845) 223-5115 Fax: (845) 223-3721
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
69
Locals Lend a Hand By Barry Lewis, Vice President of Communications for CCA
Laborers Provide Warmth and Comfort to Newburgh Families Laborers’ Local 17 believes that every child deserves the warmth of cozy pajamas and a fresh pillow. Working under the Laborers’ International Union of North America’s (LIUNA) Feel the Care community outreach initiative, they made sure parents in Newburgh were able to provide these comforts for their children. On Nov. 17 Laborers’ Local 17 staff handed out more than 350 pairs of pajamas and 400 pillows to parents who drove up to the Newburgh Armory Unity Center.
Carpenters Local 279 Provide Shelter for Veterans More than 25 members of the Carpenters Local 279 participated this summer in a volunteer project led by Spearhead Construction, a veteran and woman owned business, to build a pavilion for veterans at American Legion Post 151 in Orange County. The 20’ x 40’ pavilion offers veterans a safe place to meet with plenty of open space to practice social distancing. A number of union carpenters who volunteered are military veterans themselves. The United Brotherhood of Carpenters is a founding member of Helmets to Hardhats, a national program that links separating military service members with training and careers in the building trades. The project took three weekends to complete. Laborers Local 17 donated a Lull and one volunteer from IBEW 363 brought wired lights and fans along with outlets. Materials for the pavilion was donated by Home Depot. 70
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
JOIN THE CCA! For over 60 years the Construction Contractors Association of the Hudson Valley
has had a hand in almost every significant construction project across the region. With its strategy of providing quality management coupled with outstanding workmanship by highly skilled local labor, CCA is the right choice to get the job done right, on time and within budget.
Membership to the CCA includes: • Promote your business or company on all CCA social media platforms • Contact list of professional contractors, suppliers and service providers • Direct networking with our members at golf outings, lobster bake and holiday gathering • Availability of PPE supplies
Members can take advantage of our health insurance plans that offer: • Multiple plans to choose from • Favorable premium rates not available in the open market • Highly rated national insurance companies • Extensive lists of preferred providers
FOR MEMBERSHIP: Contact Alan Creais, Director of Member Services at 845-562-4280 or awcreais@ccahv.com
FOR ASSISTANCE WTH CCA HEALTH PLANS: Contact Robin Seidman at rseidman@ccahv.com or Millie Rodriguez at mrodriguez@ccahv.com
845-562-4280 ON THE LEVEL:
ccahv.com
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
71
Providing the calm after the storm
Since 1928
Helping contractors and businesses in New York
with their insurance needs
Liability • Property • Workers’ Compensation • Surety
Call us to review your insurance today!
380 Broadway
85 Civic Center Plaza
Newburgh, NY 12550 Poughkeepsie, NY 12601 845.561.1706
845.485.6300
30 Scott’s Corners Dr. Montgomery, NY 12549 845.561.1706
www.wasmithandson.com
72
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Don’t Ignore the Needs of Your Employees By Robin Seidman
COVID has changed our personal and business lives drastically and while we wish we could return to business as usual, that is not likely to happen any time soon, if at all. Here is what we’ve seen since the pandemic hit: • Businesses re-inventing themselves to survive in this new climate. •
Employees working remotely – many from home – while their school-age children are distance learning in the next room.
•
Downsizing in the workplace, shifting responsibilities to fewer employees, creatively deploying field employees to worksites while keeping their health and safety in check.
You as the business owner can make the changes needed to weather this storm. But how are your employees feeling? If you haven’t considered your employee’s physical and emotional health while redefining your business strategy, you are probably making a mistake - a mistake that can cost you a good employee as well as the profits attributed to that worker. Most business owners are providing personal protection equipment to employees, such as masks, face shields, hand sanitizers and workspaces (some with plexiglass) that are the suggested 6 feet apart. That ON THE LEVEL:
shows your teams you are committed to preventing the spread of the disease through your premises. If you require visitors and vendors at your buildings to wear face masks and stay at least 6 feet away from your employees, you are showing an elevated commitment and respect to the health of not only your employees but your customers. That is only half the battle. We know workers are worried about their families and the stress that results from those concerns can be debilitating and affect job performance. Parents are juggling jobs, helping children at home with distance learning, childcare issues for non-school age children, caring for elderly parents... the list can feel endless at times. According to news reports, workers have quit or are considering quitting their jobs to manage the household disarray caused by COVID. The stress is causing physical and mental issues for families and this is important for an employer to recognize.
Here is what you can do: • Talk with your employees often. Find out what is going on in their lives. Be empathetic. Listen. •
Design work practices that can assist the employee. Give the employee work from home options if possible, in your business.
•
Expand your sick leave policy. Consider flexible scheduling. Support mental health by teaming up with local resources.
Robin Seidman specializes in NYS Sexual Harassment training and general HR policy and procedures. robin@rjshrsolutionsllc.com
•
Set up a room with Wi-fi connectivity and allow an employee to bring the children into the office one day a week for remote learning.
•
Hold employee recognition events. It does not have to be fancy – pizza Fridays, bagel Tuesdays, employee-of-the-month awards, etc.
Whatever your approach, remember that engaged employees are the bedrock of a successful and profitable business – even more so during these challenging times. Work with them and build their loyalty to you.
The pandemic, while it has changed the business landscape this year, will eventually wind down and the pro-active business owner will be in the catbird’s seat with seasoned employees ready, willing and able to help the company regain its momentum.
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
73
74
ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
Our Latest Project:
Specializing in Commercial Buildings • • • •
Brick & Block Precast Units Tuckpointing Repairs
• • • •
Decorative Wall Construction Pointing and Repointing Stone Veneer Cultured Stone
Red Hook High School 103 W Market St Red Hook, NY
Over 27 Years of Experience in All Phases of Masonry BUILT ON EXPERIENCE AND TRUST Contact James McGowan 845.339.0329 jim@mcgowanmasonry.com 5 Railroad Avenue, Kingston, NY 12401 ON THE LEVEL:
W I N T E R 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
75
