It's a grand opening and another piece to Schenectady's downtown development puzzle. A hair stylist school opens up and officials say it's one more way to show skeptics that Schenectady is on the mend. Steve Ference reports.

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SCHENECTADY, N.Y. -- "I used to tell people who were like where are you from, I'm like I'm from Albany. 'Cause who knew Schenectady? But now I'm proud to say Schenectady," said Paul Mitchell the School Co-Owner Giulio Veglio.

The school, now open in downtown Schenectady, and Veglio says only a few years ago he wouldn't have opened one of his ten businesses here.

"You have to come here, you have to see what's happening here," he said.

Then again, it doesn't look like the downtown he knew. And this school for hairstylists may be helping that along. Inside, you'll find a 25-foot long water wall, a bar-style café, state of the art design for students and customers.

Veglio's brother, Giuseppe Veglio, who's also a co-owner, said, "Not only do you come to get a service here, but people, when they get a haircut here, they're in another world, it's that tranquility that they'll get."

Call it the latest building block in an area infused with a major portion of the $400 million worth of private investment the county has seen over the last six years.

Susan Savage, Schenectady County Chairwoman, said, "It has the wow factor. What it is is a community that did not look great six years ago. The buildings were literally falling apart in the streets. Now they look like this."

Though running for statewide office, we spoke with Susan Savage in her current capacity as County Chairwoman. She says the goal now is straightforward. Downtown's being built, so now they need the people to come.

Savage said, "When you have this school full of young people and they leave and are out in our restaurants, you're creating that people engine the downtown needs."

And the key is getting to that tipping point, where a business like this draw people and benefits businesses all along these few blocks. They say it's already starting to happen.

Giulio said, "One of the relationships we created was with Proctor's, who does Broadway shows. We said how can we help you and they said how can we help you? And we were asked to cut the hair for two stars of Miss Saigon."

It's business synergy, a trend folks here hope continues as Schenectady, with the help of The School, aims for the cutting edge in downtown development, working block by block.