Genesee attorney calls Orleans action ‘frivolous and politicized attack’

Photos by Tom Rivers: The new sewer line is shown on Aug. 12 on Route 63 in the Town of Alabama, Genesee County. Orleans County officials are seeking to stop the construction from going to the STAMP site about 10 miles north to the Oak Orchard Creek.

SHELBY – Orleans County is suing its neighbor to try to stop a sewer line from coming into the Town of Shelby and depositing up to 6 million gallons of what Orleans says is “contaminated” water into the Oak Orchard Creek.

The county on Monday filed an Article 78 complaint in State Supreme Court, seeking to halt placement of a sewer line from the STAMP site to the Oak Orchard Creek, a 9.5-mile long pipe along Route 63 that has been under construction since Aug. 3.

Orleans is asking for a temporary restraining order to stop construction so the arguments can be heard in court without the pipeline getting built in Orleans County.

The court action from Orleans County is called a “frivolous and politicized attack” in a court response from Craig A. Leslie, attorney for GCEDC and others named in the suit.

Orleans County officials contend the county never gave its permission for the project, and the Genesee County Economic Development Center formed a “sham corporation” – STAMP Sewer Works – to make the project happen.

The STAMP site is 1,250 acres and is considered a top priority for economic development officials in the region. It is targeted for advanced manufacturing – semi-conductors and renewables manufacturing.

Plug Power is currently building a $290 million facility at STAMP for a green hydrogen production facility that includes an electric substation. The new facility will produce 45 metric tons of green liquid hydrogen daily when fully operational, making it the largest green hydrogen production facility in North America. Plug will employ 60 people.

Another company, Edwards Vacuum, announced last November it would build a $319 million “factory of the future” at STAMP in a project serving the semiconductor industry. Edwards plans to employ 600 high-skill professionals at the semiconductor dry pump manufacturing facility.

The commitments from the two companies follow a 20-year effort to develop STAMP in a rural area of Genesee County, only a few miles south of the Orleans County border. STAMP has been pushed by U.S. Senate Majority Leader Charles Schumer, Gov. Kathy Hochul and her predecessor, Andrew Cuomo.

But Orleans County officials say the Genesee County Economic Development Center has been driving the contracts for the project, including engineering and construction – and that is illegal because an economic development agency can’t fund and push projects outside its own county unless it has permission from the other municipalities, Jennifer Persico, an attorney representing Orleans County, wrote in the complaint filed in State Supreme Court in Orleans County.

Jennifer Persico, an attorney with Lippes Mathias LLP, speaks during an eminent domain public hearing on July 27. She said at the hearing that the Genesee County Economic Development Center illegally created STAMP Sewer Works as “a sham corporation” to do the eminent domain proceedings against two Orleans County property owners.

In the court filing, she said Orleans “strenuously objects” to the sewer project.

Genesee County EDC is illegally funding a project outside its jurisdiction, Orleans contends in its complaint. The EDC paid for easements to allow for temporary construction, including all but two in Shelby. Orleans County secured two easements in Shelby with the stipulation no sewer line can be constructed.

Orleans officials contend the sewer discharge could limit the county’s efforts to develop its own business park in Medina, and the water may cause flooding and hurt the county’s $30 million annual fishing industry at the Oak Orchard, which is world renown for salmon and trout fishing.

The GCEDC on March 25, 2021 awarded a $9,777,000 contract to G. DeVincentis & Son Construction Company for the 20-inch sewer main which goes from the northern refuge boundary to north of Shelby Center. GCEDC accepted low bid from Highlander for construction at $5,193,445 and approved a $900,000 contract and a $560,000 contract to Clark Patterson Lee for engineering services for the sewer project. GCEDC approved the bids without the consent of Orleans County.

The request for bids shows GCEDC contemplated construction in Orleans County without the consent of Orleans, Persico said.

GCEDC also has purchased at 18 temporary easements in Orleans County to allow for construction of the sewer line, without consent of Orleans, a violation of general municipal law, according to the complaint.

Orleans, in the complaint, also faults Genesee County EDC for improperly forming STAMP Sewer Works, for illegally funding and noticing the eminent domain hearing at the Alabama fire hall on July 27.

Orleans seeks to have the Supreme Court annul the easements. The county also seeks to stop the GCEDC-backed project in Orleans without the county support. That includes efforts from the GCEDC-affiliated Genesee Gateway Local Development Corporation and STAMP Sewer Works.

Leslie, attorney for GCEDC, asked the judge, Frank Caruso, to not approve a temporary restraining order on the project. Leslie said the sewer line construction has received all of the needed environmental and right-of-way permits from the state Department of Transportation and the U.S. Fish and Wildlife Service to cross the Iroquois National Wildlife Refuge.

Leslie said Orleans County shouldn’t be granted a temporary restraining order because the project is still weeks and even months from getting into Orleans. Persico wrote in her court filing the project was likely a matter of hours or days until it started in Orleans. The contractor is currently installing the sewer line in the refuge in Genesee County, Leslie wrote.

Orleans is beyond its authority isn’t seeking to stop all sewer line construction when the project currently is solely in Genesee County.

Leslie , the GCEDC attorney, said the claim that GCEDC is using its own money is false because the funding is part of $33 million awarded for STAMP development by Empire State Development, a state entity “which fully supports the STAMP project,” Leslie wrote.

He responded that the Town of Shelby gave its consent to the sewer line project, and so did the Orleans County Department of Health.

He asked the judge to deny the Orleans request for a preliminary injunction and temporary restraining order.

“Orleans County will sustain no injury by the continued construction of the Force Main, particularly in Genesee County, while this matter is appropriately determined by this Court,” Leslie wrote to Judge Caruso. “Meanwhile, STAMP Sewer will be irreparably harmed if the overbroad and unreasonable order requested by Orleans County is granted.”

Legislator on EDA board says Legislature unlikely to approve that request

ALBION – The Orleans Economic Development Agency, an organization focused on spurring business activity in the county, is seeking a $50,000 funding increase from the Orleans County Legislature for 2024.

The county allocated $200,000 for the Orleans EDA for 2023, up from $190,000 in 2022.

The agency’s board of directors on Friday approved a $385,000 budget for the EDA in 2024. The agency has been waiting on several larger projects to move forward in the past two years, including renewable energy projects and expansions at local companies.

The EDA generates some of its revenue through fees, which are usually 2 percent of the total investment in a project. A $3 million expansion, for example, would net $60,000 for the EDA if the project received assistance from the agency.

The EDA has had some cash-flow challenges. It received a $500,000 loan from the county in October 2022 to be paid back over three years at 3 percent interest each year. The terms call for the EDA to pay the county a third of the principal each year.

The first payment of $166,666.67 plus $22,500 is due March 1, 2024. The second payment of $166,666.67 plus $10,000 in interest is due March 1, 2025. The third payment of $166,666.66 plus $5,000 is due March 1, 2026.

The agency is seeking a 25 percent increase from the county in its annual government allocation. But Skip Draper, a county legislator and EDA board member, said the county has its own challenges and he doesn’t expect much of an increase from the county for the EDA in 2024.

Draper said the county was notified by the state that it is reducing reimbursements for several social services programs that are mandated by the state. That could be a $3 million hit to the county, Draper said.

“It’s unlikely,” Draper said about the $50,000 increase being approved. “The mandates are up (from the state0 but the reimbursements are down.”

John Misiti, the EDA board chairman, said the county loan has helped the EDA through a challenging year. He said he expects a turnaround for the EDA finances soon.

“We are navigating through a  tight year,” he said. “We need a big project to hit.”

ALBION – The Orleans Economic Development Agency expects it will be surveying recent graduates of small business training program to hear from the entrepreneurs the strengths and weaknesses of the eight-week class, and hear if they have ideas to make it better.

The EDA has been offering the program for since 1999, with 567 people completing the Microenterprise Assistance Program.

Matt Holland is the new leader of MAP following the retirement last month of Diane Blanchard, who was the coordinator of the program for about two decades.

The EDA is open to tweaking the program, perhaps expanding it to 10 weeks. The organization wants to hear from MAP grads on how well the program prepared them to run a business and if there are any topics that could use more attention.

“We want to set them up to succeed,” said John Misiti, chairman of the Orleans EDA board of directors.

He praised Blanchard for her long-term commitment to the program. He said the EDA is always looking for continuous improvement.

The EDA expects it will reach out to graduates from the program in the past five years. The EDA wants to hear how many of those grads are in business, how many started a business but closed, and how many opted not to venture out with a business.

Some of the class sessions focused on:

• Development of comprehensive business plans
• Marketing and advertising
• Business organization
• Tax, accounting, insurance and financing
• Specialized computer application
• Creating effective leadership

The EDA may want to add a session on developing an online presence and online marketing, said Gabrielle Barone, the EDA vice president for business development. She believes an online presence makes a big difference for many small businesses.

Michael Dobell, the EDA executive director, said the change in leadership with MAP is a chance to take stock of the program and look for ways to make it better – with lots of input from the recent graduates.

“Let’s talk to them and see how MAP could have helped them even more,” he said at today EDA board meeting.

The survey should provide lots of feedback for the EDA as it looks to upgrade the program, board members said.

“Let’s see if there are any common stumbling blocks that we could address in MAP,” said board member Ed Urbanik. He said running a small business right now is “a tough environment.”

The program also has made grants available to some of the recent grads to help with equipment or to be used as working capital.

The EDA was awarded a $300,000 state grant about a year ago to help small businesses. The grants have ranged from a minimum of $10,000 to a maximum of $35,000. The grants can be used to buy equipment or be used as working capital. About $33,000 remains to be disbursed from that grant. The EDA also received a previous $200,000 grant to assist small businesses.

The EDA would like to apply again for that grant program, Dobell said.

The agency isn’t offering the training class this fall, but will get back to offering the classroom instruction in the spring. There are usually 10 to 20 students in each class.

The EDA is directing people interested in small business training to try an on-line course offered through Niagara County Community College this fall. Those grads are eligible to apply for the grants offering through the EDA.

Letters of intent due by Sept. 29

Press Release, Rochester Area Community Foundation

In an effort to expand and enhance its support for each of the rural counties in its service area, Rochester Area Community Foundation will infuse up to $50,000 in grants to nonprofit organizations helping to improve the quality of life for residents in Orleans County.

This new funding opportunity is part of an intentional strategy by the Community Foundation to increase access to critical services, tackle disparities faced by residents, and bolster services of the nonprofits on the front lines. This effort aligns with the Foundation’s main goals of creating a more equitable community and strengthening our region’s vitality.

“The pot of money is $50,000 for this first round,” said Mary F. Holleran, senior vice president, of communications for the Rochester Area Community Foundation. “How many grants and the amount of each depend on the number of applications. In Wayne County, for example, grants ranged from $1,000 to one for $20,000. In Yates County, one grant was $10,000 and one was for $15,000 and several were smaller.”

The first step in the grant application process is for nonprofits serving Orleans County to submit letters of intent (LOIs), which serve as a brief, initial outline of the need for grant funding. LOIs are now being accepted through the Community Foundation’s online portal at www.racf.org/GrantPortal, which will connect to the Regional Grantmaking 2023-24 Application. Submissions must be made by Sept. 29.

Select applicants whose projects align most closely with the Foundation’s impact areas — poverty, academic achievement, racial equity and understanding, arts and culture, historical preservation, environmental justice, aging — will then be invited to submit full applications for further consideration of funding.

This grant round includes additional funding opportunities for nonprofits serving Orleans, Genesee and Livingston counties. This past summer, additional grant dollars were made available in Wayne and Yates counties, in partnership with the Foundation’s geographic affiliates there. A total of 30 nonprofit organizations serving those two counties received grants.

If a nonprofit has questions about eligibility or the grant portal, please email grants@racf.org.

About Rochester Area Community Foundation: In 1972, a group of local residents founded Rochester Area Community Foundation as an endowment to provide ongoing and long-term support for the Rochester-Finger Lakes region. The Foundation works with individuals, families, businesses, and other nonprofit organizations to establish charitable funds or contribute to existing permanent funds that help address the region’s current and evolving needs. In its first 50 years, the Foundation has distributed more than $674 million in grants and scholarships throughout our region and beyond.

ALBION – Ken Schleede, a resident of Yates-Carlton Townline Road, said the road is seeing more severe flooding, concerning many local residents.

He said the changes started about a dozen years ago. He presented photos of his submerged road from a recent rainfall to the Orleans County Legislature last week.

Last year in February a sinkhole forced the county to close a section of the road between Ashwood and Alps roads. The county then had to rebuild that part of the road.

The road continues to get flooding this year after many rain events.

“We definitely have an issue there,” Schleede told county legislators last week.

John Papponetti, the county DPW commissioner, agreed there is a flooding problem on Townline Road. He said it happens in other parts of the county as well.

The DPW has been working with landowners and the Soil & Water Conservation District to try to deal with the water, and keep it off roadways.

“It’s a problem we have across the county,” Papponetti responded. “We just can’t stay on top of it.”

Papponetti said an increase in farmers tiling their fields, which directs water to ditches, may be resulting in more water in ditches and spilling over onto roadways.

“It’s sending more water to our system,” he said.

When it rains 2 to 3 inches in a storm, the result can be a flooded road.

“That’s more than our drainage system can handle,” he said.

Papponetti said he would meet with Schleede to look at Townline Road again, and see if the system can be improved.

The number of people employed in Orleans County is up by 400, from 16,700 in July 2022 to 17,100 last month, according to the state Department of Labor.

The county’s unemployment rate dipped from 4.1 percent to 3.5 percent during that time, with the number of unemployed down from 700 to 600.

The unemployment rate nationally was 3.8 percent last month, the same as in July 2022. However, the number of people working has grown by 2.9 million in the year – from 159.1 million to 162.0 million.

Statewide, the unemployment rate has dropped from 4.3 to 4.1 percent from July 2022 to last month. New York also has 178,200 more people working in that time – from 9.284 million to 9.462 million.

These are the unemployment rates for July 2023 in Western New York counties:

• Orleans, 3.5 percent
• Genesee, 2.6 percent
• Wyoming, 2.9 percent
• Livingston, 2.9 percent
• Monroe, 3.3 percent
• Niagara, 3.4 percent
• Erie, 3.3 percent
• Chautauqua, 3.5 percent
• Cattaraugus, 3.5 percent
• Allegany, 3.7 percent