The Rochester I Know; 413; Max Farash

I. Mean. Very few people have the ability to physically leave a mark on a city. From his early beginnings in building homes to such marvels as Gateway Plaza and the atrium more than most people he has helped to change the face of downtown Rochester. He balances his business Ackerman with sailing and a lifelong passion for horses. Today Bill Pearce talks with Max parish about the Rochester he knows. Hi I'm Bill Pearce Welcome to the Rochester. I know our guest today is president and CEO of the FERS corporation. Max very Max thanks for

joining us today. I know I know what a business person you are and you are involved in the activities of this community every day you're around and you've done so much to make the city and actually surrounding countryside you know a better place to live and have all sorts of awards over the years and we're not going to get to those because just holding a half hour program. But we want to talk a little bit about you know you weren't always the to MAX FERRIS you know super realtor or developer or contractor or whatever. Well where were you born Max in Rochester but where. In the area around Kelly in Hanover Street and Vienna Street and what kind of circuit there where you're poor family a middle class family I would say we are middle class we were never before. We never wanted for anything. We are a hard working family. What did you do as a kid that was a dead boy. Or how many how many kids as a family. Well there were seven of us but I

was the baby you were the baby I was the bad boy you were the bad one the one who was always screaming for attention kind of right and kind of doing things that were unexpected for him. Some of IGS surprised me. Well the first thing that I remember is that we had friends and neighbors mixed culture blacks Jewish and polish. It was a great environment. One of my best friends had a bicycle and I wanted one mention to my mother I said everybody has a place I'd like one which is good. Yes once was you can get it. Why did you go to work at it. That was a lesson I learned. Bill I guess it's kind of a mindset. The more you want the more you work the word more you work the more you get what you you know handouts you will head out to work for what you get where you go to elementary school

number nine school number nice wonderful still. Still there was a fair great experience there from Number 9 that I went to high for about a year and then Ben Franklin opened up and went to Ben Franklin and graduated from there. Good now Wyeast time been from your dad time. Ben Franklin was being built there was there was only time to go to use time and west time maybe because it was on the side of a star this is WXXI started in the basement of all these tile and Alexander had to remember that the question was whether it was ever going to succeed. We still were still working on whether or not it is a great community center. But Benjamin Franklin. Hi and did you major in something to prepare you for life just trying to get by. That's just one of the I told you I was kind of a boy but I didn't say too much attention to that like that I never had to study in the other ones I just ignored.

But somewhere along the line you develop some kind of an entrepreneurial spirit because when you get out of high school what you started. What did you do when you get out of high school. Well I guess the comment I made earlier is that I always wanted more and had to find a way to get it. And very simply I found that by working you get you know what and so when you talk about entrepreneurial it's a case of wanting and getting what they want. So what did you do how did you start out. I started out as a paper boy paper route selling paper delivering groceries on a bicycle and sort of thing. And finally your own business. I mean somewhere as that was early when I was going to school did that getting your spending and walking around money like you're going to you're out of school now and you start a business at some point. Yes I did and why. Why start why not work for someone else.

Well I mentioned to you that you know. We did we had a company call Genesee sales service and that was mechanical engineering and we had the repairs I had a partner that was a genius he could look at a piece of equipment and repair it and we became partners I was a business and then he was the mechanical that it was that he has passed away since. But a great person and we work together very well and I was good at what I was doing and he was very good at what he was doing and we delivered a lot of service and value and frankly that's been kind of the backbone of our operation and service and then through the beginning of your first business was what can mechanical repair and repair installations that you did you sell anything or just oh yes sales and service we would sell or put it in and style it and keep it repaired. Now why that business because he was good at it you know.

So he was good at so I think I have to put him to work out what their empathy we were together for many years and never had a harsh word. We've had disagreements and but I'm out of table and there's a side. Now at some point Jenna see sales and repair expanded well to something else I think would have been as we were getting larger. He decided that he really didn't want to get larger because he didn't want to work hard. Maybe he'd want to slow down. So at that point we had a friendly separation and I told you that we got into real estate by the fact that we're looking for a house and couldn't afford one so I mean my wife and I were looking at a house but we decided that we could build one for less than the price of gas. And we did that very well was the price they were 8000.

Nobody had any of the big money. So you built your own. Well we built two houses and we thought that we could build it for less and we built it for about half and then as soon as we built the other house it was sold right away. And it was a $2000 profit which is a big that was a big profit at that time. So I took the IQ and I went out and found other lots that we built we built them. We sold them and the fact was that we were the engineer the contractor the sales person the finance person we did everything. So obviously you represent a good value and we had a successful career and building houses where we know where we're building next. We're building awful Laurel to Rodolphe that town of around and around any houses in the city. Yes I think we started to Laurel road

and as we progressed there was quite a demand we felt that we but I think it was too loud. Van Bergevin you off of Atlantic Avenue and we build those and they were sold and we bought about maybe 17 a lot of houses were in demand. GARRETT And you remember which years I don't remember the years I remember the price like $17000 for a new house with a garage. Marvelous Yeah it was. Well you went from building houses to what was the next step. Well I think part of my background which I feel privileged was my background. I think there is always the financial insecurity when you come from a family of modest means and we are doing so well you know I thought well this can't go outside. What if something happens. So I convince my partner that we should build some duplexes rental housing. Then we bought one

lot and we build two duplexes and they rented immediately this is for some kind of steady and yeah that we own and rented immediately and without that golly let's try this about a few more and then we bought apartment lots and here we are today with about 4000 apartments and all the other things that we're doing 4000 apartments spread around Monroe County and you know County and outside you know it's some point you begin to expand into office space. And how did that come about do you remember your first venture. Let me think yes I think I do. We had enough of this. Hudson they have a new Al and I did it was a small modest who was my town I was passed away and we felt we wanted to get beyond that so we bought a lot on culver road just off of Main Street and we built our office there and pretty soon people just to build office buildings for them so there was

six or seven acre lot there so we bought the lot and we built a Prudential Insurance Company and some of the other national companies and I guess it's a case of just offering a lot of service and really Bill. Those buildings are still standing by the way where's your office now is it. Now it's a 12 corners in Brighton on Winton it's in the heart of what road and how long you've been there so many years. What if I had to write the first office building is built now what's the first major undertaking and would you would consider you really stuck your neck out and borrowed a lot of money. Probably Well I think I think it's a series of kind of financial escapades. Everything we've done has been beyond past city financial capacity but as each became successful became a little braver and it went into bigger things I think the

first venture that we thought was risky is we bought. Lots of simple Boulevard I forget the name of the street and it was something that we built two houses that were sold and I went to the bank and I said I wanted to buy the back property and I didn't have any money and I didn't have the money. But these accessible developers that mean we would give them a lot of service of value and they were kind enough to advance the dollars in order to buy the whole of the property and then we put them up for sale and we sold them immediately. And again his value was serviced some point you know as you developed and grew I mean you must have had your financials up financial up and down. So more and more are for up for your neighborhood out here you're always thinking well what if we're going to make it. Well did you have any friends who helped bail you out

on your own. Well with a lot of help. Kind of a climate at that time especially if you were hardworking and financing available the banks were very good to me. Who are some of the people you remember that were helped with or at the banks or in the community. Well one of the most indebted to is passed away. His name was Ward ward and he was a financial officer at Lincoln Lincoln bag. He got to know me early in my career. We wanted to build a house for ourselves and I went to him he was the bank manager on Fifth Avenue in Portland and I went to him and said

I really would like to build a house for ourselves and I think we do it but we don't have any money. How do you do it. Ask me a lot of questions and kind of send time with mags if you need money coming in. I didn't have any money but we were hard working and he loaned me the first 4000. We built the house for 4000 and then having done that successfully I thought we'd go on building and he has bank financed from a zero base. It was a thousand was a lot of money that was when you talk about risk that was a big risk. And we went on from there at the subdivisions and sold a lot of houses and we built apartments again. I think the bill there's a basic financial insecurity that should be in good stead.

It was a question of when things were good and the businesses said well this isn't going to go on forever and what happens is it is a retreat. So consequently we have built some rental housing so this is kind of a backstop and became successful that we built an office building for ourselves and Prudential Insurance company like this in this building for us and the post office did I think two or three major corporations I don't remember them. They came along in the complex that was where our office was and it was well kept well built well maintained and that kind of gave a start for the banks more friendly than Nixon than they are nice things there were. Well I say friendly while you had a reputation obviously but it's saved me the bankers knew the people better and I think that's

true I think there was a greater empathy between the principle and the lender. I think today a lot of it is numbers but I hear a lot of stories about banks and I don't agree with any of them. I believe that when you realize that bankers are fiduciary capacity they're not lending their money they're lending other people's money. And so consequently they have to be doubly sure of the risk and I found that very responsive when you demonstrate that you're at risk. A lot of people go to a bank and they want to put about the money their net interest. Well you can understand being the capacity the banks are pretty sensitive to that. We always went in with the idea that this is our this is our risk and this is all we have. Even a thousand dollars is a lot of money. And then we'd borrow maybe a thousand and they were very cooperative. I never had trouble with that. Max you've developed some major

properties in the city that I'd like to talk about for a couple minutes. I don't I'm not sure where the Gateway Center came along and your career but at some point you developed what was then the old Edward's department store. Some people may remember Edwards one of the great department stores in town and you developed it into into what the Gateway Center. And how did that come about. Well I remember there at I think that I think that my temperament is to always look for something that's in the horizon. I mean a certain element of risk I think is exciting. And I heard that someone was going to bid on the Gateway Center a deal that was building and knock it down for a parking lot. And that would have been a lucrative you know use for that property and I heard about that. So I inquired about it. And then I said

you know what. It was a bidding process and I guess I just said I want to do that and I thought the deal Edwards you know even though you had no client for had the creative imagination. And by that time I'd Villa built up a credibility I could power a lot of money and I think if people it was a bid situation and I think I didn't know what their bid was going to be but was about 250000 and I wanted to be sure that I had it. So I bid as high as I could I think I bought it for about 460000 as against a 250000 vid if we played a lot of Iran. But I really wanted it. And well I mean once we had it. Well once we had it it was and it wasn't a great effort really.

A stretch of the imagination to think of it as a prime office space and we just went ahead and built the outside facade and gutted it. And at that time BlueCross BlueShield was looking for a building and we knew the pit. I think Tom Bradley was the director at that time and they were growing their space and I mentioned the Gateway Center to them they thought they'd look at it and we offer them the best deal for the lowest price and they took it and now they're active. Two hundred sixty five thousand square feet at the Gateway Center. How many square feet is there altogether. Four hundred thousand four hundred thousand. Now downtown Rochester within the inner loop what the ferry's corporation has over a million but a million five hundred thousand five hundred thousand. Is this a good time for those of you who are running space downtown Rochester. We consider ourselves down it was are always concerned about you know the activity downtown whether or not

businesses are moving in or out. Well I think today that of the it's a buyer's market. They can tell you what they'll pay. You've been through it a few times. All right now the Gateway Center came along and I'm not sure the order but at some point you build at the corporate place there next to that was inner loop and these are nice to have and by the inner loop and now why that was a major development was new from the ground. Yes it was all now that it would be a major undertaking and and how were you sure you were going to get clients to order a tenants for that space. Well Bill I think there's a certain part of me that's always a risk taker. By that time the Gateway Center was rented and I think the way it started I was on the roster telephone board at that time and Jim Henderson was the president who has since passed away and we became very friendly and they were talked about looking for a headquarters. I showed him that property it

was vacant and Devon you and he liked it and he said yes we'll take it. If you build a building we'll take it. Well he passed away in the meantime built the property. What do you think different. His successors had different ideas and by the way they were very good about it. Allen called me and he was this is Alan Hassel has a longer you know he called me in and said you know that I know that you were dealing with Jim and property and if you created a debt what will take care of it. And he was willing to pay me 250 or $300000 which I had the property. And I took a look at it and I said thank you. We're going to keep it. He was willing to give me the few thousand dollars to pay off the property and I was being led to another I thought it was a good location and I just thought that

sooner or later someone with what we built the first the first phase that we didn't have attended. I can't quite bring you know that risky side of you together with the you know the deal in security that you've talked about all your life but soberer and there are years in the back of your head there's some knowledge that this was going to work out all right. Well I thought it was an excellent location and Bill I was convinced that the way we built buildings it was not the least expensive way it was the most expensive way and consequently we thought that our buildings would have to be recycled three or four times. Today they build buildings with a steel frame and exterior drywall and brick. It is good enough for the whole building inside and we build the building and it was a lot before we got at least with it for some code after

15 years. One of not too bad not that we we have to get to the Time Square building because this is a building that you didn't build but it's really kind of almost a center piece in there to Rochester whenever there's a winners of a tourist brochure or whatever. Rochester there's the time square building with those wonderful art deco wings. Now why did you get into buying old buildings. Well it's a very simple response to that. The community savings bank owned that building and they called me and they asked me to evaluate it and I said I would but I'd have to write it for six months. And when I got through running at any given you know an accurate appraisal of the building I ran for six months and got through I said like a bad case of why I said I think that has potential. I think the management was or we could improve on it. We went on and on

and finally the discount of the building by about $800000 over the prize and I said fine I'll take it. Well I still think it's a signature building. It will always be there. I kind of feel that. It's kind of my contribution that we're going to keep it. Well Max very few made many contributions to Rochester and I agree with the Times Square building is no doubt a landmark building for this community and whatever else goes up. Nothing quite has that look and that appeal is the type of square building something about it now that you build to a large extent in the city you built in the suburbs outside the county. I think down Ontario County developments and we read recently about a lot of movement in office space out the southeast corridor and other places. You know what your long view of

the development here in the city of Rochester. Well I firmly believe that there will always be a center core talking about the gate and carpet place. I think the movement to the suburbs really relates to the cost of parking and the ease of getting there. I think that I've been an exponent of using parking as not as a profit maker but more as a marketing tool. And I'm still convinced that if we offered free parking we would have a lot of that office space in Rochester. And so what we did we build a parking ramp in a corporate place and it's proven to be a good marketing tool. As far as the outskirts are concerned we have. Gone a little bit further than the present development. I believe that the development is going to the south east so consequently when the two Ontario County and

we built a building there and finally we had a chance to take a look at a golf course I don't know if you know center point it was the old Cana diag golf course and had been run by investors and it was there was very poor maintenance. You know take a look at it and thought it would have prospects. But before I do that I also had options at one hundred twenty five acres beside the golf course. We're going to save that for another program next parish. You made a tremendous contribution to this community and you've had to date and it's still going on and it's a marvelous career developing I think a great space for all of us to work in this community and outside this community outside the media. Phil thanks for being with us today. I'm Bill Pierce. This is the Rochester I know President and CEO of the ferry's corporation MAX FERRIS been our guest today and we thank him and we thank you. See you next time.

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