In the Know

In the

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

New Opportunities Emerge During COVID Pandemic

FALL 2020

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Sullivan County Par tnership for Economic Development In the Know

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FALL 2020

Managing Setbacks, Coming Back Stronger As we approach the end of 2020, one I am sure most would agree could not come soon enough, some shifts have emerged in how we do business now and into the future; permanently impacting our local economy.

Marc Baez Chief Executive Officer

I

n this edition of In the

COVID-19 safety measures will endure far beyond the

Know, you will notice

pandemic. Our economy and the industries within it are

a common theme: how

intertwined. Like a domino board, when one product,

Sullivan County businesses

one service, or an educational or healthcare institution

and organizations have

drops out of the mix, the pieces tumble and affect every

circumvented the challenges presented by COVID-19 to

aspect of our daily lives. It profoundly underscores the

keep their business— and our economy going.

importance of Economic Development and our collective

Nearly twenty years after 9/11, protocols remain to help

tepid or even opposed to the casino efforts now

ensure safe travel in the airline industry. No doubt,

hopefully understand the economic impact of closures

effort to attract investment and jobs. Those who were

continued...

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New Opportunities Emerge During COVID Pandemic at Resorts World and Kartrite. Or how the small specialty

niche tourism venues that kept local businesses going,

shop, gym, or corner restaurant operate on such thin

particularly in the western Sullivan areas.

margins that their forced months-long closures could wipe them out entirely despite safety protocols.

Work from home continues, and there is a window of

Fortunately, Sullivan County businesses have developed

insurance firms seeking to exit the metro area. Improving

a form of herd immunity. As our new Chairman Randy

our water, sewer, and broadband infrastructure is critical

Resnick iterates, we have been through so many

to economic growth. We must make every effort to grow

challenges that we go into an adaptive reflex mode to

broadband to position the Sullivan Catskills for future

figure out a new way to conduct business and make

growth, attracting industries and jobs that can flourish

the best of an awful situation. Throw in a sudden dose

here and provide an extraordinary work/life balance now

of folks leaving the metro area to establish roots here,

front and center in the new workforce’s minds.

a renewed interest in sites suitable for E-Commerce business, the continuation of projects that began before the pandemic, and the formula for a Sullivan Catskills

opportunity for us to serve a demand by finance and

We have taken the first step in utilizing existing facilities to broadcast to areas now not served, but this is just

economic comeback is coming together.

the beginning. If we can “wire� the Sullivan Catskills,

Add to that the attraction of an IT company, a production

small imprint on the environment, offer higher wages,

facility, a small e-commerce company, and a specialty

and induce positive economic impacts throughout our

processing company, and the future looks promising.

communities. New and expanded service industries, new

Overriding it all are external influences: the national election, and how soon a vaccine can be approved and distributed. Yet there are unanticipated positive trends in an electrified real estate market and a flurry of new

we can attract more high-tech industries that exhibit a

home starts, tourism, and a host of support industries will boost our economy and get us back on track to the steady growth pattern we had before the pandemic. The Partnership will be working to capitalize on these new opportunities wherever we can.

NEW HOUSING UNITS IN SOUTH FALLSBURG 4

Sullivan County Par tnership for Economic Development In the Know

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FALL 2020

Transportation Engineering Civil Engineering Surveying Construction Inspection

info@cmellp.com | www.cmellp.com

Offices in Albany and Westchester NY

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SULLIVAN COUNTY PARTNERSHIP PRESIDENT MARC BAEZ ADDRESSES THE MEMBERSHIP VIA ZOOM AT THE VIRTUAL ANNUAL MEETING

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Sullivan County Par tnership for Economic Development In the Know

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FALL 2020

Sullivan County Partnership Goes Virtual

A

midst a global pandemic, the Sullivan County Partnership has continued to push forward for its members. The Partnership hosted its 26th

Annual Meeting via Zoom on Thursday, October 1, 2020 at 5:30PM. Although the 200+ in person networking, delicious food and cocktails were missed this year, the Partnership remained committed to bringing value to its members with informative project updates, state of the Partnership and Sullivan County, insight on future projects, and a dynamic keynote speaker all within one hour!

The 26th Annual Meeting opened with messages from our video sponsors Advance Testing and Envision Architects. Since its inception in 1984 Advance Testing has been involved in almost every project on Route 17 from Wurtsboro to Hancock in Sullivan County. As a new member of the Partnership, Envision Architects is already involved in several projects with some of the largest employers in Sullivan County. As stated by Jim Smith, Founder/CEO of Advance Testing, “Sullivan County is going to continue and move forward with diversified projects from A to Z…”

continued...

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Sullivan County Partnership Goes Virtual

ENVISION ARCHITECTS PRINCIPALS DARIA MALLON, JENNIFER ROBILLARD AND KELLY KLOPFER FILMING THEIR ANNUAL MEETING INTRO IN THEIR ALBANY OFFICE

Fred Stabbert, SCP Chair of the Marketing Committee,

to create its Disaster Relief Workforce Emergency (DRWE)

highlighted the perseverance, durability, and drive of

Revolving Loan Fund program to assist small businesses

business owners in Sullivan County. Like everyone else,

in Sullivan County that experienced financial interruptions

the Partnership has had to adapt during the pandemic;

due to the pandemic.” Nine DRWE loans have been

working tirelessly to support existing businesses in

approved by the SCP Revolving Loan Committee, chaired

Sullivan County, attracting new business to the area, as

by Mr. Resnick. The DRWE Revolving Loan Program process

well as supporting its members.

was designed by the SCP Revolving Loan Committee to

“In spite of the COVID-19 pause in New York State, the future for Sullivan County remains very bright.” stated Jim Bates, SCP Chairman from 2018-2020. “We are seeing resurgence everywhere. There has been almost an immediate influx of individuals and businesses looking to relocate to our area from several metropolitan areas, as well as a resurgence of new and exciting projects, the likes of which Sullivan County hasn’t seen for a very long time.”

Randy Resnick, SCP Chairman 2020-2022, looks to move forward, grow membership, and make the SC Partnership and Sullivan County business community stronger. “As a result of COVID-19, the Partnership found it very important

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move as quickly as possible. Once all proper documentation was submitted by the applicant, the application was reviewed and voted on by the committee within an average of three days. DRWE funds distributed to approved applicants may be used to solve immediate business needs such as payroll demands, rent, utilities, and insurance payments.

“As some restrictions were lifted and the economy began reopening, resuming construction projects and new construction ignited the comeback of Sullivan County” reported Marc Baez in his state of the Partnership address. “City dwellers soon followed, seeking temporary respite or permanent haven from larger urban areas.

Sullivan County Par tnership for Economic Development In the Know

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FALL 2020

Sullivan County Partnership Goes Virtual Rental properties were quickly booked for the entire Summer, and real estate sales soared. This exposed operational vulnerabilities for business owners regarding broadband infrastructure weaknesses and the need to meet this increased demand. The County of Sullivan responded, forming an LDC that will oversee the expansion and availability of broadband to existing county facilities that will reach areas currently not served adequately if at all.”

This year’s Annual Meeting keynote

The Partnership invited Jared Kleinert, USA Today’s

speaker, Jared Kleinert, USA Today’s

Most Connected Millennial, as this year’s Annual Meeting keynote speaker. He too has been bitten by the Sullivan Catskills bug and is currently in the process of searching for sites to create a corporate retreat meeting space for his organization Meeting of the Minds. Jared emphasized that the future is now, and that Sullivan County can and should take advantage of current trends such as: greater flexibility to work from home, company culture transitions due to COVID-19, larger millennial base looking to purchase their first homes, all to bring

Most Connected Millennial

the Sullivan Catskills to the next level. Here at the Partnership, we remain bullish on the future of Sullivan County and will continue to push forward to promote economic development in order to benefit our members by enhancing the quality of life and improving the standard of living in Sullivan County. > Annual Meeting Video

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Building permits authorizing privately-owned housing units in September were at an annual rate of 1,553,000 (seasonally adjusted). This is 5.2% above the revised August rate of 1,467,000.

In September privately-owned housing starts were at an annual rate of 1,415,000 (seasonally adjusted). This is 1.9% above the revised August estimate and 11.1%

MONTHLY NEW RESIDENTIAL CONSTRUCTION, SEPTEMBER 2020

above the September 2019 rate of 1,274,000.

Privately-owned housing completions were at an annual rate of 1,413,000 (seasonally adjusted) in September. This is 15.3% above the revised August estimate and 25.8% above the September 2019 annual rate.

Source: U.S. Census Bureau (2020) Monthly New Residential Construction, September 2020 Next Release: November 18, 2020

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Sullivan County Par tnership for Economic Development In the Know

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FALL 2020

Total construction spending during September 2020 was estimated at a seasonally adjusted annual rate of $1,414.0 billion, this is 0.3% above the revised August estimate.

In September, spending on private construction was at an annual rate of $1,074.9 billion (seasonally adjusted). This is 0.9% above the revised estimate

MONTHLY CONSTRUCTION SPENDING

of $1,065.6 billion in August.

Source: U.S. Census Bureau (2020) Monthly Construction Spending, September 2020.

Next release: December 1, 2020

MONTHLY NEW RESIDENTIAL SALES, SEPTEMBER 2020

NEW HOUSES SOLD1

959,000

NEW HOUSES FOR SALE2

284,000

MEDIAN SALES PRICE

$326,800

This represents a supply of 3.6 months at the current sales rate.

Seasonally Adjusted Annual Rates

1

Seasonally Adjusted

2

Source: U.S. Census Bureau (2020) Monthly New Residential Sales, September 2020.

Next release: November 25, 2020

QUARTERLY RESIDENTIAL VACANCIES AND HOMEOWNERSHIP, SECOND QUARTER 2020 RENTAL VACANCY RATE

6.4%

HOMEOWNER VACANCY RATE

0.9%

HOMEOWNERSHIP RATE

67.4%

0.4% lower than rate in 3rd quarter 2019 and 0.7% higher than rate in 2nd quarter 2020

0.5% lower than the rate in 3rd quarter 2019 and unchanged from rate in the 2nd quarter 2020

2.6% higher than the rate in the 3rd quarter 2019 and not statistically different from the rate in the 2nd quarter 2020 Source: U.S. Census Bureau (2020) Quarterly Residential Vacancies and Homeownership, Third Quarter 2020. Next Release: February 2, 2021

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FINANCIAL FOCUS Investment Lessons from 2020 As the year draws to a close, it’s fair to say that we’ve all learned something about the social, political, physical

John K Leigh IV, AAMS®, CRPC® Financial Advisor

and environmental forces that have affected everyone.

And, in some ways, our lives will be changed, perhaps

46 Foster Rd, Suite 2 Hopewell Junction, NY, 12533 (845) 227-5831 EdwardJones.com/John-Leigh

permanently. But as an investor, what lessons can you learn from 2020?

Here are some to consider: THE MARKETS LOOK AHEAD. Here’s something many investors discovered in 2020: Investment prices don’t always move in the same direction as the overall

and get their entertainment online, it’s probably not

economy. This might not have seemed apparent right

surprising that some parts of the technology sector have

after the COVID-19 pandemic struck in mid-February,

seen their economic activity grow, along with their stock

as the overall economy and the stock market took big

prices. Here’s the key point: Investment opportunities

hits. But just about five weeks later, the markets began

always exist, especially in times of market stress – and

a rally that lasted several months. During this time, the

smart investors will find them and incorporate them into

economy also recovered somewhat, but still remains on

their portfolios in a way that’s appropriate for their goals

weak footing.

and risk tolerance.

What can explain this discrepancy between the markets

PATIENCE AND DISCIPLINE CAN PAY DIVIDENDS. As

and economic activity? Essentially, economic numbers,

mentioned above, the stock market dropped sharply in

such as the unemployment rate and gross domestic

the weeks immediately following the pandemic, but then

product (GDP), reflect what’s happening today, but the

gained steadily for months afterward. Investors who tried

markets are always looking toward tomorrow, which

to “cut losses” and exited the market likely did so at

means they are anticipating a stronger economic

the wrong time and missed out on the beginning of the

recovery and the results that come with it, such as

upturn. Unfortunately, this is not uncommon – investors

greater corporate earnings in 2021. No one can say for

who overreact to market declines often find themselves

sure what the future holds, but you can usually know the

on the investment sidelines just when a new rally begins.

market’s opinion by its performance.

Rather than being reactive in this way, you may be better

OPPORTUNITIES WILL ALWAYS EXIST FOR INVESTORS. Although the coronavirus seems unprecedented, the equity markets have rebounded from many crises before it. From war to global financial meltdowns, the market

off sticking with a long-term investment strategy, and buying and selling investments only when it makes sense for your situation, such as when you need to diversify your portfolio.

has seen it all. But even at the height of these events,

For many reasons, it’s unlikely that we’ll see anything

when the markets might be most affected, individual

exactly like 2020 again. But some of the investment

segments or industries can do well.

lessons we learned are applicable in every year – so keep

For example, in the current environment, when many

them in mind for 2021 and beyond.

people have been forced to work and shop from home,

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FALL 2020

Serving the Mid-Hudson and Capital Regions

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SCPar tnership.com 13AM 10/8/20 9:35

MEMBER ANNIVERSARIES 5 YE AR ANNIVE R S A RY

AKRF, Inc. Capacity Marketing E.L.E.C. 825 Fallsburg Lumber Co, Inc. Here’s Help Staffing

membership DRIVE

Keller Williams Hudson Valley United Liberty Land Associates, LLC Michael Bloom Photography Mongiello’s Italian Cheese Specialties, LLC Orange & Rockland Utilities, Inc. Thompson Sanitation Corporation

10 15

YE AR ANNIVE R S A RY

Grossinger Development Corp.

If you’re a current member of the Partnership and BRING IN A NEW PAID MEMBER BEFORE JANUARY 31, 2021 you will have your choice of a $100 GIFT CARD to enjoy dining at one of our fantastic member restaurants!

YE AR ANNIVE R S A RY

Keystone Associates, LLC SDA Events

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YE AR ANNIVE R S A RY

Billing, Loughlin and Silver, LLP Village of Liberty Rolling V Bus Corp.

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YE AR+ ANNIVE R S A RY

Sullivan County Chamber of Commerce

Spotlight Filming will Resume Are you interested in being in the spotlight? Beginning in January, the Partnership will resume filming its member spotlight videos. These short videos provide a great opportunity for you to highlight your business to other members and maybe reach a new customer or two!

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

All spotlight videos are shared on our website and social media platforms. Please contact Jen Cassaro, Director of Membership and Special Events, via email at cassaro.jen@scpartnership.com or call our office.

Click here to see some past Spotlight businesses!

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To have us reach out to a potential new member on your recommendation, please contact Jen Cassaro, Director of Membership at cassaro.jen@scpartnership.com

Sullivan County Par tnership for Economic Development In the Know

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FALL 2020

MEMBER SPOTLIGHT Phil Vallone, President Rolling V Bus Corporation Liberty, NY The Covid 19 pandemic hit Rolling V Bus hard. Their motor coach business, specialty car service, school sports trips, field trips and day trips became non-existent. So they got lean; selling vehicles, taking others off the road to reduce overhead. “We’re back to our core work, what we know best and that’s the yellow school bus,” says owner Phil Vallone.

“Obviously, with remote learning, we’ve seen a significant change in our school bus operations.

“We gotta keep rolling. There is no slowing down, there is no complacency, you’ve always got to be moving forward.”

Ridership is way down as expected but surprisingly the number of buses for the home to school work is similar because of the reduced ridership on each bus.

With the spacing requirements, they need about the same amount of buses. I thank God that we were and we are a strong company. If we hadn’t been, this certainly could have put us out of business. It helps that we’re also diverse and all of our eggs aren’t in one basket. We have a good customer base and we will get through this.

We also own the Roscoe Beer Company and the Twin Village Golf Course which is right across the street and they’re doing well.”

Rolling V is celebrating 30 years in business in 2020 and 20 years with the Sullivan County Partnership. When asked why he’s been such a dedicated member of the Partnership, Vallone says he just sees the big picture.

“Aside from networking, the value of the partnership to any business is the profile that it gives Sullivan County and attracts new businesses to our area and as a result of that- everybody benefits; some directly, some indirectly. The more people you bring into the area, the more jobs you create, people move here, their kids go to school, they use school buses.”

PHIL & DONNA VALLONE

in 1990 with his wife, Donna to start his family and his business. He is the eternal optimist with regard to the future success of his beloved Sullivan County. “We were on a good roll and we will get back there. The new blood that is coming into the county, as a result of Covid is great. Speaking to my hometown of Roscoe, N.Y., several businesses were sold, a couple new businesses started, young people, fresh blood, fresh ideas and a new energy, things are going to be okay.”

As far as the Partnership goes, Vallone believes that it’s critical to work hand in hand with the organizations in the county such as the Visitor’s Association and the Chamber of Commerce just to build name recognition for our county. “The truth is, it’s that name recognition that created the real estate boom and all of the new business inquiries coming into the Partnership office. Had all of these entities not worked together to successfully create the name recognition, people could have looked elsewhere. It’s so very important to work with others for the common cause - in fact, it’s the key to what’s going on right now.”

His advice to new members of the Partnership? “Attend events, listen and make friends.”

Vallone, born in Brooklyn, has been coming to the Sullivan Catskills since he was 1, and relocated here

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Sullivan County Partnership Grows GOLD INVESTOR Delta Engineers, Architects,

UTC Associates, Inc. (UTC) is a

Land Surveyors, & Landscape

solutions-based leading business

Architects, DPC is a growing, multi-disciplinary

and technology consulting firm focusing on key aspects of

professional services firm founded in 1976. Delta has

technology innovation, application development, design,

grown from pure civil engineering roots into a 140 person

testing, implementation, managed support, and services.

firm that delivers a wide range of services targeted

UTC Associates offers a broad range of services tailored

to clients in eight primary service areas: Architecture,

to clients’ needs, from consulting services, to software

Facilities Engineering, Landscape Architecture,

development, to security support, to system integration.

Transportation Engineering, Environmental

utcassociates.com • 212-344-4111

Engineering, Specialty Precast, Survey & Mapping, and Ecological Services.

SERVPRO of Orange, Sullivan & S.

delta-eas.com • 607-231-6600

Ulster Counties is a commercial, business, and industrial disaster cleanup and restoration

Since 1991, Apple Ice has been doing

company. SERVPRO has been a leader in commercial,

more than just manufacturing and

industrial, and home cleanup, along with the restoration

distributing ice to wholesale and retail customers. From

of water damage flooding and mold remediation for the

bagged ice-to-ice sculptures, Apple Ice has you covered.

past 30 years. They have served hundreds of residents

Apple Ice produces more than 800,000 pounds of fresh

in cities and towns like Liberty, Rock Hill, Monticello,

crystal-clear ice each day to ensure availability. Emergency

Wurtsboro and more.

ice delivery is available 24/7.

servproosu.com • 845-342-3333

appleice.com • 800-423-8646 Resnick Energy has been meeting the heating oil, kerosene and commercial fuel needs in Sullivan, Eastern Ulster, and Northern Orange Counties for more than 20 years. Resnick Energy provides same-day and next-day heating oil delivery, automatic heating oil delivery with benefits like a 5-cents per-gallon discount, 24-hour emergency heating oil delivery for anyone, and much more. resnickenergyny.com • 845-513-3517

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Sullivan County Par tnership for Economic Development In the Know

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FALL 2020

EXECUTIVE INVESTOR

INVESTOR

Hudson Valley Home Source, LLC

Prestige Productions is a nationwide

was founded in 2002. Through

entertainment company with over 15

dedication to meet the needs of

years of experience. They specialize in DJ’s/karaoke-in-

their clients and a desire to create dream homes, Hudson

flatables-themed decor-a/v services-portable stages-vid-

Valley Home Source has grown to be the premier custom

eo simulcast-wireless mic’s and sound system equipment

modular home builder of the Hudson Valley Region of

rentals-projection screens-flat screen monitors—tent

New York and the surrounding area.

table and chair rentals- plus much more.

hvhomesource.com • 845-294-5663

myprestigeparty.com • 845-797-0337

Since its founding in 1967 Geis

As of 2020, R. J Katz Realty has been

Companies has grown into a

servicing the Real Estate industry for

multi-million-dollar development

50 years. As long time Sullivan County residents H. Bruce

and construction business, with more than 150 skilled

Reynolds and his associate Arthur Knapp have extensive

professional staff. Services range from planning,

experience in Sullivan County and its surrounding areas.

budgeting, and scheduling, to design, bid and award,

rjkatzrealty.net • 845-798-2126

construction, flexible leasing arrangements, property management, move-in and the one source “turnkey”

Keller Signs is a local, family owned and

construction responsibility on which the company was

operated, commercial sign and billboard

founded. geiscompanies.com • 330-528-3500

company that has been in business in Sullivan County since 1928. They provide design services,

Founded in downtown Albany in 1983,

billboards, vehicle graphics & magnets, banners, plastic

ENVISION is a NYS Women-Owned

& metal signs, and much more.

Business Enterprise (WBE) led by

outdoormediacorp.com • 845-583-7400

Principals Daria Mallin, AIA, Jennifer Robillard, AIA, and Kelly Klopfer. They

DIA is an international

maintain a mid-sized firm of twenty-five team members

multi-disciplinary architecture and design studio. Their

and offer architecture, interior design, planning and

projects range from master planning, development

master planning services in their core market practice

consulting and high-end residential to fashion and art

areas for clients in Healthcare, Science & Technology,

installations. diarch.net • 212-253-5577

Education and Community & Cultural enterprises and institutions. envisionarchitects.com • 518-462-1848

AFLAC is the largest supplemental insurance provider in the USA. Offering

Bohler provides land

plans that pay cash directly to employees when they get

development consulting

sick or hurt. There is no cost to the employer and every

and technical design services to owners and developers

employee chooses what they need for their own family.

across all commercial, institutional, and residential

dominick@domssc.com • 845-381-1184 ext. 10

markets. Bohler helps real estate professionals identify and act on opportunities to become accomplished. They

Main Street Mews

partner with their clients to leverage industry change

Luxury Apartment Rentals

and tackle site challenges, resulting in successful land

Residential and Retail Space

development projects.

234mainstreetmews.com • 914-490-3433

bohlerengineering.com • 518-438-9900 Sullivan County Par tnership for Economic Development

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Hello Thursday!

Networking is back… SAFELY

Sullivan County Partnership Board of Directors Randy Resnick, Chair Karen Fisher, Vice Chair Michael Zalkin, Treasure James Bates, Secretary Carlito Holt Kevin McLaren Larry Wolinsky John Brust Gary Sliver Gerald Skoda

Jonathon Schiller Kelsey Hornicek Steven Vegliante Matt Dorcas Charlotte Van Horn George Kinne Gary Schmidt Fred Stabbert Jeff Siegel

Back in July, the Partnership was the first local organization to dip our toes in the water of having in-person events after the NY pause. After a survey, some members indicated to us that they would be willing to attend a networking event, provided that it was done with safe, social distancing practices, a smaller group of people and that it was outdoors.

We DELIVERED! Our July Construction Cluster, August Professionals Cluster and October New Member Welcome events were a smashing success! Each event was attended

Did You Miss Advertising in this Issue or would Like to Submit Editorial Content?

Not to worry, our next issue is scheduled for publication in March.

Contact us to see how your business can be included!

Please contact Jen Cassaro, Director of Membership at cassaro.jen@scpartnership.com

by 30-36 people and the response was extremely positive for these more intimate networking

Kitchens

.

Baths

.

Closets

opportunities which we’ve dubbed, “Hello Thursdays!”. We’d like to thank our sponsors and host venues for their support and plan to resume similar events in the Spring. Stay tuned.

Over 125 years of design experience!

O: (845) 615-9410

2713 Route 17M

.

www.HVKDC.com

New Hampton, NY 10958

Delta provides an integrated set of professional design and support services to make your next project a success.

We are your trusted partner. delta-eas.com 18

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FALL 2020

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Gary M. Schuster Partner

Force Majeure after COVID-19

Jacobowitz and Gubits, LLP Walden, NY 12586 845-778-2121 x 230 gms@jacobowitz.com jacobowitz.com

by Gary M. Schuster When the COVID-19 crisis arrived, many people who had signed contracts found it difficult or impossible to perform their obligations. Many sought relief from the force majeure clause in their contracts. In most cases, that proved to be disappointing. With the benefit of hindsight, parties now have the opportunity to revise contracts to provide the protection they need.

Force majeure is a French phrase which means “superior strength.” Force majeure can excuse performance under a contract when there is an event or condition

Modern force majeure clauses typically recite events that will excuse performance, such as fire, floods, war, riots, etc. “Acts of terrorism” is a relatively new addition resulting from the 9/11 attacks. Courts had held that the attacks were not acts of war or riot, so “acts of terrorism” was added to the standard clauses. Businesses are now going through the same exercise, this time in response to the pandemic and executive orders restricting public

which was not anticipated and prevents or inhibits

gatherings.

performance or renders it futile. A closely related

In addition to excusing performance, some force

concept is frustration of purpose. The concept is often taught through the Coronation Cases. King Edward VII of England was scheduled to have his coronation on June 26, 1902. Thousands of people rented rooms and boats to watch the festivities. Two days before the event, an attack of appendicitis forced the rescheduling of the coronation. Many people who had rented rooms and boats demanded refunds. Many of those demands were rejected, and many lawsuits ensued. The results depended on whether the contract stated a purpose.

Where leases specified that the purpose was to watch the coronation, those people were excused from compliance. Other leases simply provided for renting a space for two days, without a reason or purpose. People with these leases were not excused. A lease for a boat said that its purposes included watching the coronation and taking a cruise around the fleet. Although the coronation was canceled, the fleet was still in the water

majeure provisions specify events or conditions that will not excuse performance. For example, a contract may say that performance is required even if a company’s labor force goes out on strike. Or that the failure of the electrical utility will not be an excuse for performance; the performing party should have a generator backup.

When considering their response to the Covid crisis, businesses should consider whether one party, or both parties, or no party should be excused from performance in the event of a pandemic or government orders. They should also consider events or conditions that will not excuse performance. They should also address what will become of any down payment or deposit, and goods or services that are only partially completed. Each business will have its own particular considerations. An experienced business attorney can help draft appropriate force majeure provisions.

and could be cruised around. That lease was enforced because some of its purpose remained.

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FALL 2020

Civil / Site Planning Environmental Compliance and Remediation

Proud to serve as a Sullivan County Partnership Gold Sponsor

Environmental Permitting and Ecological Services Geotechnical Engineering Structural Engineering Surveying, Mapping and Construction Stakeout 3D Lidar Scanning

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Special Inspections and Materials Testing

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Adapting to Accounting in the Time of COVID-19

by Jonathan Rouis, CPA Adapting to accounting at the beginning of the COVID-19 pandemic meant embracing new norms for the

Jonathan Rouis, CPA Partner

accounting industry as a whole. It was a Friday afternoon in March when the RBT team was instructed to pack up

RBT CPAs, LLPRBT CPAs, LLP 11 Racquet Road Newburgh, NY 12550 845-567-9000

within a few hours and prepare for a remote work from home shift. By the following Monday morning we had entered into uncharted territories. Many of the challenges our team experienced likely echo adjustments every industry felt. Creating “work” spaces at kitchen tables, falling into new routines, communicating with team members who we were used to meeting with daily. ZOOM quickly became an essential tool, as we were able to seamlessly connect with many clients and reclaim some of the energy we had lost with in person interaction.

However, not every client has access to technology equipped with a camera, so limitations were established right off the bat in our new remote settings. How could our team members conduct inventory observations without our newfound favorite ZOOM tool? Additionally, some clients (primarily government agencies) are entirely reliant on physical documentation, so when they shut down and went remote, their lack of digital workflow created additional and unforeseen roadblocks in the auditing process. Some clients had designated staff members head into the office on an as need basis to scan and send documentation to our team. Thankfully for everyone, certain deadlines were pushed back to enable these entities to get all of the necessary paperwork submitted, but it undoubtedly created additional

the software necessary to go completely digital. While we always strive to be in the field and look forward to the day when we can safely interact with clients once again, we recognize that many may remain remote indefinitely. As more businesses adopt work from home flexibility, we will adapt to accommodate our clients.

We embrace the mentality that even though we’re not physically sitting together, we can still successfully interact and serve clients. We pride ourselves on the personal relationships we’ve developed over the years, and now it’s more important than ever to be proactive about staying in touch.

Our recommendation for clients, is to invest in updated IT capabilities so your business can be completely paperless in the event of new unforeseeable circumstances. In order for future remote audits to be successful, safe paperless programs are key. Beyond convenience, it can mean a big cost savings for you down the road. Investing in modern

stressors for our clients at an already hectic time.

technology now that can result in remote zooms for

This has been (and continues to be) a learning process for

clients – cutting down on audit team travel costs among

everyone at RBT. Thankfully, our IT department was strong enough to help us effortlessly transition to remote work and coordinated safe digital document transfers – but

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we recognize not every business has the capability or

inventory counts could result in major cost savings for other preventable expenses. Overall, our team views the open door into remote auditing as a positive for our clients and us, too.

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The Pandemic is Changing Upper Delaware Real Estate

By Elizabeth Lepro Republished with permission of

REGION — Have you talked to a real estate agent lately?

M

aybe seen one from afar—a human-shaped blur in a flurry of paperwork and emptied coffee mugs, trailed by the ever-present sound of a cell

phone dinging with offer after offer on Upper Delaware properties listed and snatched up in a flash? continued...

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The Pandemic is Changing Upper Delaware Real Estate As the pandemic began to grip major cities in

same timeframe in 2019. More than 1,300 homes sold in

Pennsylvania, New York and New Jersey, many city

that timeframe.

dwellers who were able started looking for rural safe havens. As a result, the real estate market in Wayne, Sullivan, Delaware and Orange counties is so hot, local realtors are saying it’s exceeding any they’ve seen— comparable, if not more intense, than the post-9/11 real estate boom, when urban flight also created a weighty seller’s market.

“It’s nonstop. Every agent that I know is working seven days a week,” said Lynne Freda, of Matthew J. Freda Real Estate. “There have been bidding wars like you can’t believe.”

According to the Wayne/Pike multi-listing real estate service—what realtors use to track all real estate sales across those counties as well as the fringes of surrounding counties such as Susquehanna, PA; Orange and Delaware, NY—there was a 60 percent increase in buyers from July 1 to September 15, compared to the

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A jump that high that quickly is historic, said Tim Meagher of REMAX Wayne, which has offices in Honesdale, Lake Ariel and Tyler Hill, PA. It’s likely that were it not for limited inventory, that number would be even higher. There’s been a 50 percent decrease in the amount of housing inventory available to potential buyers. There just aren’t enough houses for sale to meet the demand.

This uneven supply and demand has pushed the average sale price on a listing up 14 percent.

“A house in pre-COVID-19 market [more than] $500,000 would have sat there quite some time. Now, a house in the high end—$500,000 to $1 million—it is getting looked at right away and within a week, in many cases it’s going into a multiple-offer situation,” said Freda.

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The Pandemic is Changing Upper Delaware Real Estate

Buyers aren’t thinking twice about dropping savings on

The same was true post 9/11, when many families fled the

a country home. Fear of a proximity-spread virus, the

city for fear of another attack. But for every boom, there’s

sudden irrelevance of being near a physical office and

always the looming threat of a bust.

the uncertain economic future for major urban hubs has shifted their perspective. Many newcomers to the area, realtors say, are in their late 20s to early 40s, coming from New York City and Philadelphia, looking to buy second homes or main homes. They want lakefront properties, spacious acreage and room to breathe (literally).

“Some of the buyers that we’re dealing with, it’s very emotional for them to get their children out of the city where they can come and play outside and get fresh air and have a garden; go hiking on the Boy Scout trails,” said Dawn Curreri, of Eagle Valley Realty, which sells properties on both sides of the river. “Being stuck in an 800-squarefoot or less apartment with two adults and a couple of kids... it would be hard for some of us to imagine. A lot of things in the city have changed.”

In the early 2000s, the real estate bubble infamously imploded, causing an economic recession that financially destroyed large swaths of the population for years to come.

“We found in the beginning of this market as things started going up and people were just buying, the appraisals were not keeping up with the sales, so we were coming up with lower prices,” said Freda, adding that she’s not concerned about the future, just “aware.”

“The people with the cash said, ‘Listen, I’m afraid that we’re in this crazy artificially inflated bubble, what’s going to happen in five years when I’m going to sell?’ They’re absolutely right. We don’t know. If we all knew that, we’d all be rich.”

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QA Meet Our New Partnership Chair, Randy Resnick COO: Resnick Energy, The Sullivan Events Center, Rez-Wear Facemasks President: Penguin Energy, RezBear Propane, Liberty Market, Bernie’s Holiday Restaurant, BHR Caterers

Q. How long have you lived in Sullivan County?

out, but the energy businesses remain strong as they are

A. “I was born and raised in Sullivan County.”

kind of recession proof. You need the product that we sell. The Northeast uses more heating oil than any other

Q. We know that you are involved with many businesses - how do you manage them all right now?

A. “Right now, I’m running 8 businesses. I don’t sleep.

I get up early and I go to work, and I go home and I go to sleep. It’s a tight balance, but the key for me is having really good people in each location.”

Q. Which one of your businesses are you most focused on today?

A. “Definitely my energy businesses. I have the restaurants, obviously which are being affected by the pandemic. The catering business has been eliminated by the pandemic, the supermarket business has leveled 30

region in the world so we’re supplying that, but I also do a lot of commercial and government accounts as well.”

Q. How long have you been affiliated with the Sullivan County Partnership and what made you initially want to get involved?

A. “I’ve been a member of the Partnership for 10 years and have always admired the Partnership board. I’ve been in business in Sullivan County pretty much my whole life but there was a time where I used to see all these people on the board and they were all business people that I looked up to and admired. I never really imagined myself in a board setting; I’m more of a

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one-man show/dictator/operator than I am a committee

understanding, and not just guesswork from the misinfor-

person, but I think that that drew me to it - the fact that

mation which is provided to them now.”

I wanted to be one of them at some point. I wanted to be at the top of the heap. Because it’s Sullivan County, I wanted to be a part of it and that’s why I joined and then years later I was invited to run for the board and have been here ever since.”

Q. What do you see in the economic future for Sullivan County?

A. “I think our future is bright. It’s been great that we’ve landed this economic development with Kartrite and the casino, but I also think that the partnership

Q. What do you see as the primary role

has really stayed focused on the other things that

of the Partnership?

are going on. We still have very reasonable property;

A. “There’s no question that it’s probably the most

we still have local governments that want economic

important part for economic development. We are

development and want growth; and I think we’re going

at the forefront. We’re the first line of defense for

to see a lot of that in the future. We’re just at the

economic development in Sullivan County. We are the ones that introduce the area to people coming

beginning of where we’re going to be. I think that we’re going to do really well over the next five years.”

into the partnership; we are the ones that can hand-hold them through the approval process, make the phone calls, introduce them to the right people to do planning and construction. I think it’s an imperative part of economic development and that’s why I am still part of it because I really believe in the mission of the partnership.”

Q. If you were to sit down with a new member of the partnership what advice would you give them to make the best use of their membership?

A. “You definitely need to be visible. The partnership is a group of businesses that pays dues to belong to an organization of businesses. It is our responsibility to co-promote each other and that requires you showing up for the social events that we have whether they’re industry-related or new member related or entertainment

Q. How do you think the partnership

related. It’s about networking. It’s about knowing who

has done throughout the pandemic?

the other people are on the board and then helping each

A. “I actually think the partnership has really stayed on

other - not just going and asking for help for yourself

track and on plan this entire year. Although we had to

but also offering help to everybody else and as a team,

alter our approach to how we did things, overall, we have

as a unit, we’ll stand stronger than if we’re a bunch of

kept our interest focused. I believe that we have great

individuals. That’s why it’s called a partnership.”

staff inside the house that produces, and I would give them an A plus.”

Q. As the current chair, what areas of focus would you like the board of directors to prioritize during your term?

A. I think going forward, I’d like to see us be a little bit stronger. We want to raise more capital individually and corporately. Overall, I think that we have good leadership.

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