In the Know

In the

SUMMER 2020

KNOW A Quarterly Newsletter for Member Investors of the Sullivan County Partnership For Economic Development

Sullivan County Par tnership for Economic Development

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Sullivan County Par tnership for Economic Development In the Know

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SUMMER 2020

FROM THE CEO’S DESK

Development Matters Prior to the COVID-19 Pandemic, and the turmoil impacting our urban centers, a story in a February 4th edition of the Sullivan County Democrat highlighted Sullivan County’s lowest unemployment in 20 years at 3.7%. An extraordinary feat when you consider that only a few years earlier we were plagued with double-digit unemployment in winter months. County sales tax revenue, an indicator of economic activity, was up well over 40% over the last 10 years and last year we recorded the highest workforce in 20 years.

As we reopen and put people back to work, basic principles still apply: attract tax ratables and jobs to offset the cost of community services, increase local spending and we will prosper.

We are now entering a period where those opportunities are beginning to increase dramatically for a variety of reasons.

Areas once considered business-friendly in the Hudson Valley are now halting all development.

Business will seek to go elsewhere. The market demands it and communities that view this trend through the prism of opportunity will thrive. Those that push back will do so at significant cost.

Activity in the real estate sector is strong, but it is much different than 9-11, the financial crisis, and the casino licensing. The urban exodus is not as much about opportunity as it is about safety and stability. It can be a much more powerful and lasting phenomenon, where those who may have thought Sullivan County was a bridge too far, now see it as a viable option for the future of their families and their businesses.

It’s no coincidence that towns which have welcomed development in appropriately zoned areas exhibit vastly lower tax rates than those who have not. In other words, development matters. This is not to endorse a scorched earth strategy of urban sprawl and development at any cost.

We will have to accelerate our time horizon as external forces continue to drive us to react faster to capitalize on new opportunities. We must work efficiently to keep up with demand. Over the next decade or longer, Sullivan County can be where the action is. It’s up to us to understand that development matters. That being open to a diverse array of new opportunities for investment and job creation is the path to a successful future.

Rather, it is to remind us that a balanced and diversified approach to development is the path to a sustainable economy and growing a middle class is necessary to support the long-term health and wellness of our communities.

For now, we’ll continue to respond to every inquiry as best we can. Thus far it’s been going well. In the coming months you’ll hear about several businesses that have decided to make Sullivan County home. It will be up to all of us to welcome more investment and jobs and bring our county back as soon as we can, because development matters.

Marc Baez Chief Executive Officer Sullivan County Par tnership for Economic Development

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Construction Leads Comeback of Sullivan County Economy At the drop of the green flag marking the second phase of reopening, teams of construction workers raced back to projects that had been shut down due to COVID-19.

Nearly six weeks since reopening, projects including, the Eldred Preserve, Marshalls, Hampton Inn, BOCES, the Sullivan Catskills Visitors Association office relocation, and numerous county-wide housing projects are accelerating the economy back to pre-pandemic cruising speed to make up for lost time and attempt to complete projects as close to schedule as is possible. “Construction is a critical component to our local economy”, said Marc Baez, President and CEO of the Partnership for Economic Development.

“It amplifies across all sectors of the economy with the purchase of materials, fuel, professional services, food services and more.” he added.

Chief Operating Officer of the Eldred Preserve, Scott Samuelson said, “We couldn’t be happier that we’ve been able to resume construction at The Eldred Preserve. The site is buzzing again, and with it the level of excitement about sharing The Eldred

Preserve with our guests. This project continues to be a real labor of love for Dan and Joan Silna, who have invested a great deal to ensure that The Eldred Preserve - once complete - can provide a hospitality experience that is second to none. They’ve spared no expense to ensure that every detail is top of the line.”

Construction on Marshalls at the Thompson Town Square in Monticello resumes

Partnership members in the construction industry are bullish on the economy if we can continue to see good health statistics. While pre-pandemic projects have restarted, new business is developing too, a sign that the construction sector is healthy. “Work isn’t stopping,” commented Ashely Allensworth, Assistant Project Manager and Estimator for Boyce Excavating.

“The amount of work coming in is outstanding. We are doing our level best to keep up and put out the quality of work everyone expects from Boyce. The value of Sullivan and Orange County property is going The Eldred Preserve

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Sullivan County Par tnership for Economic Development In the Know

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SUMMER 2020

to be even more valuable now. I think investors and businesses want these areas and we’re grateful to be involved in what’s happening and what will continue to happen.”

History shows that opportunities arise after significant economic downturns resulting in shifts in consumer behavior. People and business tend to leave major urban centers for suburban and rural locations.

“There’s been a significant uptick in inquiries from the metro area” said Baez.

He adds that there is a desire to leave areas deemed less stable and predicable for both businesses and their employees to places that are less subject to interruptions.

Sullivan County Par tnership for Economic Development

A recent piece in the New York Times titled “ A Run on the Catskills” underscores the frenetic pace at which buyers are moving their families out of Manhattan to the open spaces of the Catskills. This market and lifestyle shift opens the door to a wave of potential development both in housing construction and commercial construction in areas like Sullivan County, bolstering an increasingly busy industry sector. Of course, this impacts architecture, engineering, legal, financing and specialty services (i.e.

HVAC, electrical, landscaping etc.) Time will tell, but all signs point to a turnaround and if current indicators remain, the construction industry will remain strong well into the future.

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Sullivan County Partnership Loan Fund Makes a Big Impact on Small Businesses Throughout the COVID-19 pandemic, businesses have been hit hard on a global, national, regional, and local level.

“Facing uncertainly in the future, we at the Partnership knew we had to take the initiative to provide liquid capital to small businesses financially impacted in Sullivan County” said Vanessa Olivo, Economic Development Specialist.

The Disaster Relief Workforce Emergency Revolving Loan Program (DRWERLF) was designed to assist small businesses address immediate financial needs such as payroll, rent, insurance, and utility bills. It consists of a five-thousand-dollar loan at a one-percent interest rate.

Total term length is three years, with no payments required first year after signing, the remaining two years are comprised of a total of eight quarterly payments.

Since launching the program in early April the Partnership received 17 applications, ranging from a community healing center to a materials hauling business. As of mid-June the Sullivan County Partnership’s Revolving Loan Committee has approved eight applications totaling $40,000.

With each business the Partnership assists, Sullivan County’s small business community gains strength and becomes one step closer to overcoming the obstacles brought by the COVID-19 crisis.

Pictured (Left to Right): Ezekiel Miller and Josiah Early Cochecton Fire Station, a craft cocktail and food establishment in a refurbished fire station in Cochecton, NY Photo courtesy of Sullivan Catskills Visitors Association

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“The Sullivan County Partnership DRWE Loan Program impacted my business by providing liquid capital when everything was upside down. It provided me the ability to be flexible as the situation evolved.”

—Ezekiel Miller, owner of the Cochecton Fire Station

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The COVID-19 pandemic forced many businesses to close their doors or dramatically adjust their business plans.

“Moving to seven days a week and remaining open from the beginning of the pandemic, I have been able to retain all my employees and simultaneously provide a minimum of 40 hours every week for every employee.” Ezekiel said. Robert Siegel, owner of Ace Moving and Storage commented: “I have not been able to do anything since March. This will help just in time since construction is ramping up and I am beginning to get calls for multiple loads.”

As Sullivan County approaches brighter days through the reopening process small businesses remain vigilant.

“We have re-opened for groups of ten or fewer who are family/friends that have been together since the beginning of social distancing. Hopefully, the warm weather will attract more people to spend time at Burn Brae Mansion and enjoy our beautiful property.” said Mike Fraysse, owner of Burn Brae Mansion. The majority of the loan applicants came from the western part of the county. Those businesses rely on foot traffic for the bulk of their revenue particularly during the high tourist time of the year. Together with other federal programs from the SBA, the Partnership has helped these businesses survive and continue to be part of the greater Sullivan County Business Community.

DRWE Recipients

Cochecton Fire Station River Family Wellness, Inc. Bethel Market Café Burn Brae Mansion The Heron Ace Moving & Storage Catskill Motel/Jafri & Sons South Asian Grocery Finbar’s Farm

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Sullivan County Par tnership for Economic Development In the Know

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SUMMER 2020

“The $5,000.00 DRWE loan has made it possible for us to pay our insurance premiums, utility bills and maintenance costs during COVID-19. We have not had any business since January 2020 and every little bit helps.”

—Mike Fraysse, owner of Burn Brae Mansion.

Burn Brae Mansion, a B&B located in Glen Spey, NY Photo courtesy of Sullivan Catskills Visitors Association

Sullivan County Par tnership for Economic Development

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Members Stepping Up in a Time of Need Since the economic shutdown in March, our members were some of the first to step in and step up their commitment to serving their local communities.

Although they won’t brag about it, we’d

like to acknowledge and thank them for helping out in any way they could.

Here’s just a snapshot of the great work and unselfish acts of these valued Partnership members: A Single Bite, serves nutritious meals to neighbors in need.

SDA Events in Woodridge organized a live stream dance party “Club Quarantine,” which raised $3500 - 100% of the profits donated to No Kid Hungry.

Prohibition Distillery in Roscoe almost immediately switched from production of alcohol to hand sanitizer, even going so far as to teach other distilleries how to make this much needed product during the height of the Pandemic.

Meeting Tree Computer in Salisbury Mills has been collecting, refurbishing and donating computers to local veterans and contacting schools to find out where there are children who are having trouble with online learning if/ when there is no computer in the home. They have dedicated a website to this endeavor at www.meetingtreecomputer. com/mtc-cares/.

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Hudson Valley DKI in New Hampton has offered its cleaning and disinfecting services pro bono to several local fire houses, police stations and municipalities to make sure that first responders have a clean and sanitized facility to work in.

Jacobowitz and Gubits law firm in Walden is offering a FREE Simple Will for healthcare workers in hospitals or nursing homes, for those that live or work in Sullivan or Orange Counties. These can be done remotely from the comfort of your home by calling 845-764-8270 or visit jacobowitz.com/healthcare-will.

Sullivan County Par tnership for Economic Development In the Know

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SUMMER 2020

Hudson Valley Kitchen Design Center in New Hampton is offering a 15% discount to any frontline worker. They also started a small business selfie campaign – loaning out a free banner to snap a selfie in front of your business that reads #WeAreSmallBusiness #WeAreTheHudsonValley call them at 845-645-5272 Foster Supply Hospitality Group out of Livingston Manor, through their non-profit A Single Bite, has been preparing and delivering up to 2600 meals per week to local families at serious risk for hunger. For many children in our area, this is their only substantial meal of the day.

To learn more or donate, contact Audrey@asinglebite. org or call 845-482-1030 Randy Resnick started another great company called RezWear USA in response to the dire need in our community for personal protective equipment. They produce and sell reusable face masks, including KN95 masks, gloves and a variety of hand sanitizers. You can purchase products locally at the Liberty Market, Rock Hill Trading Post and Liberty Trading Post or go to their web site at www.rezwearusa.com

Spotlight Filming will Resume When our region enters Phase 4 of New York State’s Reopening Plan, the Partnership will resume filming its member spotlight videos. These short videos provide a great opportunity to highlight your business to other members and reach new customers.

They can be filmed at your location or in our office.

All spotlight videos are shared on our website and social media platforms.

Are you interested in being in the spotlight?

Contact Jen Cassaro Director of Membership and Special Events Cassaro.jen@scpartnership.com or call 845-794-1110 Keep an eye out for new highlights!

Bold Gold Media Group has supported local business by promoting public service campaigns at no charge: American Red Cross Blood Drives, Covid 19 Prevention/Public Health, Operation Gift Card that promotes supporting local businesses with gift card purchases, Essential Worker thank you posts, Stronger together PSA to support businesses that remained open during the crisis with free business listings.

Jeff Bank donated gift certificates purchased from 8 local restaurants to the nursing staffs at Catskill Regional Medical Center and Bon Secours Hospital in appreciation of their dedication and hard work during the Pandemic.

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Sullivan County BOCES food service program staff prepared and delivered over 140,000 meals to students in 4 school districts. Since March, they also delivered breakfasts and lunches to the children in the Essential Worker Child Care Program.

As we all become more virtually connected be sure to follow our various social media platforms. The Partnership will be sharing valuable information to both members and the community. Stay tuned to see what is happening right here in Sullivan County.

The Sullivan County Democrat in Callicoon has donated weekly ad space to promote local food banks and shopping locally.

If your business has some good works to share, please contact Jen at cassaro.jen@scpartnership.com to be included in our next publication.

@scpartnership

@sullivancountypartnership

Sullivan County Partnership for Economic Development

Sullivan County Partnership for Economic Development

Sullivan County Par tnership for Economic Development

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845.794.1110

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SCPar tnership.com

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Wanted: Place in the Country.

When: Now! In New York State, we are all working to safely open our businesses, return our family life to some normalcy, and prepare for the next step of our 2020 journey in the face of COVID-19. For the real estate market, the pandemic has brought about a whirlwind of activity in Sullivan County as more and more people try to get away from New York City.

“Prospective buyers recognize how relatively close we are to the City and that the job they used to do in an office can now be done from home,” said Cathleen Breen, Chairperson of the Sullivan County Board of Realtors. No surprise that the real estate community’s phones are ringing off the proverbial hook. Buyers have been clamoring to find a first home or a vacation home in Sullivan County to give them the distance and space they desire.

Breen notes however, there are more buyers than there are properties for sale. And, Sullivan County is not alone.

According to the New York State Association of Realtors (NYSAR), given the initial restrictions placed on Realtors

to do anything in-person, new listings were down 44.5% in May compared to the same time last year. Despite the inability to show properties in-person at first, Realtors adapted. Following NYSAR guidelines, realtors arranged virtual tours and honed their video and photo-taking skills.

“The low inventory and surging demand mean it is a seller’s market,” said Breen. “There are very good properties out there, but the lesson of this market is to act fast.” Now, prices for homes have risen; homes that have been on the market for some time are finally selling, and “hot” properties are on the market for only a matter of days before going to a multiple bid scenario. Often with cash buyers.

For those venturing out, the rewards of a beautiful countryside drive, weekends away and visit local shops are many. Due diligence, of course, is required for buyers and sellers regardless of the market, but the dream of living or vacationing in Sullivan County is becoming a reality for many!

Upcoming Events: JULY 30 CONSTRUCTION CLUSTER MEETING 5:30PM-7:30PM Bernie’s Holiday Restaurant Watch for upcoming events in August and September!

845.794.1110 SCPartnership.com 196 Bridgeville Road, Monticello, NY 12701