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INSIDE

TOP STORIES The five Beeps A patisserie sifts have their say. flour into gold, one How to boost our treat at a time ® boroughs PAGE 11 PAGE 3 Fur ever and ever, amen: VOL. XXVII, NO. 8 WWW.CRAINSNEWYORK.COM FEBRUARY 21-27, 2011 PRICE: $3.00 Retailers’ fashion prayers may be answered this fall PRIVATE SCHOOLS BOOM PAGE 2 Griffin’s departure New academies opening and established players expanding paves way for next at a clip that NYC parents (and kids) haven’t seen in years Time Inc. chief PAGE 3 BY MIRIAM KREININ SOUCCAR A number of new private schools are my is opening in the East Village, initial- finally entering the market in response to ly accepting children from nursery school The secretive trader ANXIOUS PARENTS—who just endured a the skyrocketing demand, while existing to fifth grade. A year later, another for- that beat the NYSE grueling, nerve-wracking week awaiting schools are expanding at a pace the city profit school called Avenues: The World PAGE 3 the arrival of the letters that revealed hasn’t seen in years. School, founded by education entre- whether their kids were accepted into at This September, a new 55,000- preneur Christopher Whittle and for- Focus on pensions, least one of the maybe 10 private schools square-foot for-profit private school mer president of Yale University Benno health reform they applied to—may soon get some relief. called the World Class Learning Acade- See IT’S A BOOM on Page 23 ACCOUNTING REPORT, P. 15 BUSINESS LIVES

GOTHAM GIGS A man for this season at Paragon Sports P. 25 ● ANNE FISHER on how punchstock nonprofits can get help getting online P. 25 ● MOVERS & SHAKERS Big tenants getting spaced out Improved John Leguizamo goes P. 26 back to Broadway wouldn’t sign an agreed-upon deal finances no ● GAEL GREENE gets taste Fight for blocks of 250,000 sq. ft. or more for 200,000 square feet. The rea- of Naples in Bronx P. 27 as economy improves and supply tightens son? The landlord is negotiating with Nomura Holding America, panacea to rent 280,000 square feet. which needs nearly four times as BY THERESA AGOVINO Oops. A few weeks ago, Mr. much space. INDEX Saclarides got a call from the land- Similarly, as law firm Chad- City’s sound budget THERE ARE ABOUT 390 million lord telling him that the bank was bourne & Parke mulled the renewal THE INSIDER ______8 square feet of office space and being bumped to accommodate of its lease at 30 Rockefeller Plaza,it may deter Albany GREG DAVID ______12 nearly as many rumors in the noto- Bloomberg, which had lost the chance when the aid for long term NEIGHBORHOOD JOURNAL ______13 riously gossipy New York real es- signed a lease for 400,000 landlord rented 436,000 tate industry. So Wells Fargo Se- square feet. square feet to Deloitte. SMALL BUSINESS ______14 29 nior Vice President John “I was on a train when NUMBER of A combination of the BY JEREMY SMERD REAL ESTATE DEALS PLUS ______14 Saclarides wasn’t all that con- the owner called, and I blocks of improving economy and CLASSIFIEDS ______20 250,000 square cerned when he heard that asked him to repeat it to feet or more lease expirations are push- THE BUDGET that Mayor Michael FOR THE RECORD ______22 Bloomberg LP was looking at make sure I heard him cor- available now ing more big tenants into Bloomberg unveiled last week EXECUTIVE MOVES ______25 space at 120 Park Ave.—the same rectly,” said Mr. Saclarides. the market at a time when forecast bright economic news.

THE WEEK AHEAD ______27 building where his bank had a “I’m extremely disappointed be- their options are limited by the Ironically, that could spell trouble signed letter of intent in December cause we had put a lot of time and city’s aging building stock and lack for the mayor’s reform agenda. effort into that deal.” of new construction. In the con- Tax revenue is now expected to These days,frustration is grow- stant power struggle between ten- be $2 billion higher than was orig- 08

5 ing among large tenants that are ants and landlords, the latter are inally predicted, fueled by a second discovering that there are more of gaining back the upper hand in the straight year of rebounding Wall them than there are desirable big market for spaces of more than Street profits. Another boom year blocks of space. WilmerHale 100,000 square feet. in tourism—following a record- found that out last month.The law The situation is particularly breaking 2010, when 48.7 million firm was blindsided when the acute in highly desirable midtown, people visited the city—would NEWSPAPER owner of 825 Eighth Ave. said it See BIG TENANTS on Page 23 See IMPROVED on Page 24 71486 01068 0 20110221-NEWS--0002,0003-NAT-CCI-CN_-- 2/18/2011 8:57 PM Page 1

RETAIL WRAP-UP IN BRIEF Liz Rodbell, executive vice president of ON FRIDAY, THE U.S. DEPARTMENT OF THE merchandising at Lord & Taylor. INTERIOR REJECTED THE WISCONSIN-BASED Luxury is fashion’s Returning luxury to the runways makes Stockbridge-Munsee Tribe’s plan to take sense now that those shoppers are back in control of 330 acres of land in the Catskills and action. Sales of high-end fashion skyrock- build the state’s first full-fledged casino with slot eted 72% between 2007 and 2010, and machines and table games.The decision is seen call for fall season were up 35% in 2010 alone, according to as major setback for the tribe and a win for half a recent data from American Express Busi- dozen New York racino operators who have ness Insights. been aggressively lobbying against the Indian Lord & Taylor, owned by private equi- tribe’s efforts, claiming the casino would cost the Stores expect shoppers to dig costly looks ty firm NRDC Equity Partners, reported state $400 million in lost gaming revenue. grown-up glamour not seen for a while. double-digit same-store sales increases for BY ADRIANNE PASQUARELLI But rather than just evoking the aesthetic the 12 months ended in October. A BAGEL MAKER RUN BY THE FOUNDER of old Hollywood, the presentations that OF NEW YORK’S H&H BAGELS FILED FOR TOUCHES OF FUR, spangled sequins and concluded at Lincoln Center last Thursday No mo’ Boho bankruptcy protection last week, citing the elaborate lacework dazzled on the runways appealed to contemporary shoppers. DESIGNERS RANGING from the tried and economy. Helmer Toro, who was sentenced to of New York Fashion Week as designers “It’s not like that old-ladies-who-lunch true,such as Donna Karan and Elie Tahari, jail last year for failing to pay taxes, also blamed infused their fall 2011 collections with feeling—it’s more about elegance,” said to ones newer to the scene, including litigation, the loss of rental income from a Stacey Bendet and Rebecca tenant and construction costs for the Taylor, featured sophisticated bankruptcy of Garden Operation Realty in a looks with costly fabrics and in- Chapter 11 petition filed Thursday. It listed tricate beadwork. Some, such as $1 million to $10 million in both assets and Michael Kors, added a twist debts. Randy Kornfeld, an attorney for the with minimalist silhouettes. company, declined to comment. Mr.Toro One unifying thread was the couldn’t be reached by phone for comment. Ⅲ bold,uplifting color—from acid pink to bright blue to fire-en- gine red—not traditionally as- BY THE NUMBERS sociated with fall that popped on catwalk after catwalk. Weekly shift of the city’s economy The glamorous styles are a marked departure from the SNOW JOB Disappointing retail sales and jobs Bohemian and activewear data were likely just the result of consumers  shoveling snow instead of shopping. Meanwhile, looks that ruled the runways the Fed notched up its 2011 growth forecast. in recent seasons as tight- fisted shoppers hungered for wearable, versatile clothing. 23% $77.1K +1.5% “My customer has been in PROPORTION WINNING RISE in NY jeans for the last year; she’s of ’09 NYC high TOTAL area consumer wearing the Boho look right school grads for IBM’s Watson price index in ready for careers in 3-day debut Jan. from a year now,” said Stacey Pecor, owner or college on Jeopardy! earlier of Olive & Bette’s. Her four Source: NYS Source: Jeopardy! Source: Bureau of boutiques generated revenues of Department of Labor Statistics Education about $18 million in 2010, and business this month is up 16% THEATRICAL SWOON The year is off to a slow start for from last February,according to attendance at Broadway shows, despite the “Broadway Ms. Pecor. Week” promotion that ran from Jan. 24 to Feb. 10. STOLE THE “The main trends I’m look- SHOW: Many LACING IT UP: Intricate work RED ALERT: The color got LEAN AND CLEAN: Michael Tracy Reese dresses were added to the glam appeal of big play on the runways, as Kors favored minimalist ing to for our customer [for the accessorized with fur stoles. Monique Lhuillier’s offerings. in this DKNY ensemble. silhouettes and long lines. coming fall season] are long

newscom, gettyimages See WHAT’S IN STORE on Page 24 Big-box spaces in demand

Source: The Broadway League Therefore, growth is a nice step.” prise and the economy is on the mend, so Closings of Borders, Large retailers, including discounters, brokers expect the spaces to quickly fill and ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY Pathmark give retailers upscale supermarkets, furniture stores and new jobs to be created. gyms, have all been eyeing the five bor- “Borders has been on death watch for a chance to move in oughs for expansion possibilities, seeking five years, so people have analyzed their CORRECTIONS spaces of more than 20,000 square feet. sites inside and out,upside and down,”said Prudential Douglas Elliman broker Fredrik Eklund’s name was Now, they have new options: Borders Jeffrey Roseman, executive vice president misspelled in the Feb. 14 story “Fame! (and maybe fortune).” BY ADRIANNE PASQUARELLI Group Inc., which declared Chapter 11 at Newmark Knight Frank Retail. “Now The No. 13-ranked office lease in Manhattan in 2010 was a deal bankruptcy last week,will vacate a 31,200- that there’s been some definitive action, I by Avenues Education Inc. for 240,000 square feet at 259 10th DID RETAIL REAL ESTATE BROKERS Ave., in which Lincoln Property Co. represented landlord Ten shudder square-foot space at 100 Broadway, a think you’re going to start to hear quickly Twenty Six Investors LP. The address, landlord and landlord rep collectively last week when they heard that 21,300-square-foot space at 576 Second [about deals].” were misstated in CoStar’s Feb. 14 list of top Manhattan office four big-box locations—three Borders Ave. and a 42,600-square-foot space at leases. bookstores in Manhattan and a Pathmark 461 Park Ave. Meanwhile, Pathmark, a Looking for large Big Apple footprint ING Group’s U.S. real estate portfolio totaled $6 billion last year. supermarket in Brooklyn—would unit of bankrupt supermarket gi- REGARDING THE BORDERS SITES,Mr.Grais- This fact was misstated in the Feb. 14 story “Lenders reopen their soon enter a market already littered ant A&P, will give up a 45,000- er, whose firm also handled the leasing of $pigots: In the hunt for new business.” with empty spaces? $1.3B square-foot store at 3785 Nos- bankrupt Linens ’n Things and Circuit Michael Shields is managing director of ING Real Estate Finance Au contraire. AMOUNT OF trand Ave. in South Brooklyn. City, said he has heard mostly from super- (USA). His title was misstated in the Feb. 14 story “Lenders DEBT listed by reopen their $pigots: In the hunt for new business.” Rather than heralding a decline, Borders in its The city will lose more than 250 markets, gyms and foreign retailers look- brokers said the newly vacant bankruptcy local jobs as a result of the closures, ing for a large Big Apple footprint. Each The name of real estate investment sales firm The Carlton Group petition was misspelled in the Feb. 14 story “Lenders reopen their $pigots.” spaces will pave the way for health- according to Borders and super- property, as advertised on DJM’s website, ier big-box retailers sniffing around market union Local 1500.Borders, has blended asking rents near $51 a square vol. xxvii, no. 8, february 21, 2011—Crain’s New York Business (issn for their piece of the Big Apple. which will maintain its Manhattan pres- foot for leases ending in 2018 and 2019. 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications “We’ve been inundated with a lot of ence with two stores,expects its three shut- According to one real estate broker, Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at phone calls,” said Andy Graiser, co-presi- tering outposts to cease operations by the grocer Whole Foods has already looked at New York, N.Y., and additional mailing offices. Postmaster: Send dent of DJM Realty, the Melville, L.I.- end of April. It began closeout sales over the Kips Bay space, which is located in a address changes to: Crain’s New York Business, Circulation Depart- ment, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber based brokerage handling the leasing of the weekend. The struggling No. 2 U.S. primarily residential neighborhood. Even service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 the local Borders sites. “Lending has loos- bookstore chain listed debts of $1.29 bil- so,another big spot just a block south in the one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2011 by Crain Communications Inc. ened up for the big national companies, lion and assets of $1.28 billion as of Christ- same development has been vacant for All rights reserved. and retailers have cut costs and gotten their mas 2010 in its bankruptcy petition. years: Whole Foods and rival Trader Joe’s merchandise and inventory to a good spot. Still, the bankruptcy news was no sur- See BIG-BOX on Page 24

2 | Crain’s New York Business | February 21, 2011 20110221-NEWS--0002,0003-NAT-CCI-CN_-- 2/18/2011 8:57 PM Page 2

Where the real Wall St. plays How private marts like Liquidnet have cleaned NYSE’s clock

BY AARON ELSTEIN

LIQUIDNET and other businesses like it are a big reason the 219-year-old New York Stock Exchange agreed last week to sell itself to Deutsche Börse.The little-known trading firm SWEET SCION: practically basks in its contrasts with Relationships forged the mighty downtown institution. in his father’s Wall The conference rooms in Liq- Street eatery helped uidnet’s headquarters in the gar- Peter Poulakakos establish his empire. ment district have such water- themed names as “Lake, “Stream” and “Sea.” There’s a foosball table and a free lunch buffet every Friday.

roger hagadone A sign on the trading floor reads, “Be nice or go away.” Yet over Liquidnet’s 10-year life, this “nice” firm has ruthlessly ham- mered away at the NYSE’s core business with a proprietary trading Sift flour into gold network used by dozens of big mu- tual funds and other investment He has the means to back up his The business’ trajectory is simi- pros that want to swap stocks away High-powered partners plan big claim. Mr. Poulakakos’ father is lar to that of another local bakery the famous restaurateur Harry that started small, Crumbs, which expansion for Financier Patisserie Poulakakos,whose Hanover Square was acquired last month for $66 Dozens of major eatery was the spot for high rollers million and is expected to go public its gleaming green and white stores. for many years and established con- next month. Financier’s future investors prefer BY LISA FICKENSCHER Co-founder Peter Poulakakos nections that proved vital to the son. could also include an IPO. and his Wall Street backers have an Its most recent investor certain- these discreet DENIZENS OF THE financial district aggressive plan to pepper Manhat- Framework in place ly thinks so. In late 2008, Mr. are well-acquainted with Financier tan with the Parisian-style cafés. MR. POULAKAKOS built the framework Poulakakos asked longtime family networks Patisserie, a popular pastry shop Since 2009, they have opened six for Financier’s growth over the past friend David Krell to help fund his that debuted on Stone Street in more Financiers, including four in several years, during which he expansion. Mr. Krell, a well-known 2002 and has spawned two other midtown; as many as seven are slat- reeled in a major new investor, Wall Streeter, co-founded the elec- downtown locations. ed to launch this year. bought a coffee roasting company tronic options marketplace Inter- Soon all Manhattanites will be “There will be plenty of them in and purchased a building in which national Securities Exchange in from the hubbub of exchanges. able to sample Financier’s crois- every neighborhood,” declared Mr. he put a 14,000-square-foot kitch- 2000. He took ISE public a few “Business has never been better,” sants,éclairs and signature coffee in Poulakakos. “It’s going to be big.” en to supply the stores. See FINANCIER on Page 23 said CEO Seth Merrin, who shares an office with his father,a renowned art dealer. Indeed, Liquidnet has secured Mr.Griffin was the first outsider such a profitable niche that it seems ever to take the reins at Time Inc., likely it will soon take itself public. and it became clear soon after he ar- A plan to do so in 2008 was put off Griffin’s groundwork rived in September that his brusque because of the financial crisis. management style was undermin- ing morale,the executive said.Time From public to private Warner’s leadership saw the maga- THE RISE OF SUCH OUTFITS is part of a to help next Time chief zine division as being in the midst broad trend on Wall Street that is of a turnaround rather than need- moving more activity out of public ing a top-to-bottom overhaul. As marketplaces into private ones. Just cent years,the magazine giant takes tive with knowledge of the situa- complaints multiplied, Mr. Bewkes as private networks are stealing mar- Brusque CEO pride in its reputation for civility. tion. That includes the hiring of acted to head off a potential execu- ket share, exchanges are also losing ousted, but leaves According to company insiders, Randall Rothenberg as chief digital tive exodus. public listings,with promising com- Mr. Griffin turned out to be such a officer, as well as the separation of He made his move with a memo panies being acquired by private eq- his mark on firm bull in the china shop that Time Sports Illustrated and of Time, For- so blunt that it caused jaws to drop uity firms. As recently as a few years Warner CEO Jeff Bewkes felt he tune and Money into two groups. around Manhattan.“Although Jack ago, hot commodities such as Face- had no choice but to act swiftly. is an extremely accomplished exec- book would have held splashy initial BY MATTHEW FLAMM Others note, however, that Mr. A mandate to motivate utive, I concluded that his leader- public offerings on the NYSE or Griffin wouldn’t have been the first THE FORMER HEAD of the magazine ship style and approach did not Nasdaq. Now they’re raising money THE UNCEREMONIOUS FIRING last to find that Time Inc.doesn’t exact- division at Meredith Corp., Mr. mesh with Time Inc. and Time privately via Wall Street banks that Thursday of Time Inc. CEO Jack ly embrace change. Griffin was hired in August to suc- Warner,” Mr. Bewkes wrote to give favored clients a cut of the ac- Griffin after just five months on the Nevertheless, Mr. Griffin will ceed Ann Moore with a mandate to staffers Thursday night. tion.Other companies are turning to job marked a watershed for the have left his mark. All his appoint- motivate the troops and move the It wasn’t hard to find industry venues like SecondMarket to sell Time Warner division. Despite ments and restructurings will re- company forward, according to the insiders who could cite firsthand their shares to private parties. many rounds of bloodletting in re- main intact, according to an execu- executive. See GROUND LAID on Page 24 See BEATING on Page 4

February 21, 2011 | Crain’s New York Business | 3 20110221-NEWS--0004-NAT-CCI-CN_-- 2/18/2011 8:07 PM Page 1

“Think of Liquidnet as a trusted spy,” Mr. Angel says. Beating the NYSE Unsurprisingly, Liquidnet exec- utives don’t appreciate that charac- IN THE MARKETS Continued from Page 3 ing commissions, while undeniably terization but prefer to see them- But trading is where the private good for clients, have made it hard- selves as running a dating service by Aaron Elstein networks have the greatest impact. er for fledgling companies to raise with superior filtering. Offering lower prices and faster serv- money and take themselves public. ice,firms such as Liquidnet have cap- “The transaction costs that Wall An IPO in the making tured so much business that the Street charged were used to help LIQUIDNET APPEARS to be tremen- NYSE handles only about 25% of all provide financing to small compa- dously profitable. The most recent trading in its listed stocks,versus 80% nies,” said James Angel, a George- public data show it had $147 million Not the same old in 2005. Liquidnet is a small fish, town University finance professor in operating income through the handling about 0.3% of all volume in and supporter of the new market- first nine months of 2008. That song and dance U.S.stocks,according to research and places. “Without that subsidy, the made its profit margins 47%—near- ERHAPS you’ve heard trading firm Rosenblatt Securities. banks have become more reluctant ly double NYSE Euronext’s. But some three dozen venues have to raise capital for small companies.” After weathering the recession, that American Idol judge sprouted in recent years—from inde- The Securities and Exchange the 350-employee company has re- PSimon Cowell has pendents to operations within such Commission wants to increase regu- turned to growth mode.Last month, moved on.Turns out the banks as Goldman Sachs and Credit lation on businesses like Liquidnet, it launched trading in Indonesian show’s owner is doing the Suisse. The NYSE has struggled to which on Wall Street are ominously stocks and agreed to share customers Robert F.X. Sillerman compete. Indeed, the called “dark pools.” with the Swiss Exchange. Liquidnet same. chief rationale for its Liquidnet’s The advisory panel re- now trades in 39 markets. It has also (right), a longtime media merger with Deutsche port marked a step in begun helping banks sell IPOs, and entrepreneur and leading Börse is to create a mar- latest filing that process by recom- it appeared on the list of underwrit- shareholder in the company ketplace in the more lu- mending stricter rules ers in a $75 million offering for an crative business of fu- showed for computer-driven insurance services company. that owns the Idol franchise, tures and options. trading strategies. If Should Liquidnet succeed in has launched a venture called photos: bloomberg news The upstart marts’ 47% profit adopted, that move holding its own IPO—bankers at Function (X) Inc. A press release from last week describes success has alarmed could stunt the growth Goldman Sachs and Credit Suisse Function (X) in the vaguest of terms, as a “new platform for regulators worldwide. margins of dark pools, which were the ones ready to take it public Chief among their are where many money in 2008—it could have a market val- investments in media and entertainment, with a particular concerns is that the managers prefer to ue of about $500 million. A rival, In- emphasis on digital and mobile technology.” Like American number of trades being place their computer- vestment Technology Group, has a Idol, Mr. Sillerman could really use a boost. His career negotiated on the pri- driven orders. market value of $800 million; al- vate networks has destabilized public Though speed and anonymity though its trading volume is three resembles a VH1 Behind the Music episode, complete with marketplaces. Indeed, last May’s are draws at Liquidnet, the real at- times higher than Liquidnet’s, its thrilling rise, the inevitable problems (some self-inflicted), “flash crash,” when the Dow Jones traction is its ability to match buyers profit margins are only 9%.(ITG and and now the possible comeback. Cue the music: industrial average sank 700 points in and sellers looking to trade large Liquidnet are also locked in a bitter minutes, was partly due to the “lack blocks of stock without tipping off a patent dispute.) The Bronx native broke onto the New York scene in the late 1970s when of liquidity on public exchanges,” ac- bank’s trading desks. Its software Mr.Merrin can afford to wait for he teamed up with fabled radio DJ Bruce “Cousin Brucie” Morrow and bought a cording to a report last week by an ad- discreetly scours clients’order books the right moment: “We’re biding couple of local radio stations.Over the years,Mr.Sillerman bought many more visory panel to federal regulators. to,for example,match a mutual fund our time. Things are good now.” Ⅲ stations and cashed out in 1998 for $2.1 billion.But that wasn’t all.At the same The fast,anonymous private net- that wants to sell 50,000 General time, he was snapping up concert promoters all over the country, building a works carry another liability. Some Electric shares with a subscriber LISTEN to a discussion at business called SFX Entertainment that he sold in 2000 for $4.4 billion. experts believe that their low trad- that wants to buy them. CrainsNewYork.com/audio Wait, there’s more. Five years later, he teamed up with a gent named Si- mon Fuller, who created the Idol idea in Europe, and launched a company called CKX Inc. In addition to Idol, CKX owns the licensing rights to Elvis Presley’s name and operates the singer’s Graceland estate. It also owns the So You Think You Can Dance franchise. But the story takes a bleak turn. Four years ago, Messrs. Sillerman and Fuller attempted to take CKX private in a $1.3 billion leveraged buyout.But then the financial crisis erupted and they couldn’t raise all the cash that was needed. Early last year, banks foreclosed on a Caribbean resort Mr. Siller- man was building and into which he reportedly sank $180 million of his own money. Later last year, he tried to take CKX private again for $600 million. But last October,CKX’s board deemed it hadn’t received any bids in the best interests of shareholders and terminated discussions. Mr. Sillerman remains CKX’s biggest investor, with a 21% stake. But the stock’s value has declined by 80% since he got into the Idol business in 2005. Now, for the comeback. Mr. Sillerman and some other investors bought a 99% stake in Function (X) for a mere 3 cents per share.Then, the compa- ny did a reverse 1-for-10 split and its stock promptly jumped, closing Fri- day at $20.25 per share.However,according to a regulatory filing,Mr.Siller- The Durst Organization man and his group bought 120 million shares on a “post-split basis,” which is pleased to welcome means their stake is worth $2.4 billion. Just one caveat: It would be tough for Mr. Sillerman to cash out because Function (X) shares aren’t listed on an United Healthcare Services, Inc. exchange. A spokeswoman didn’t respond to requests for comment. to One Bryant Park. Special thanks to Too much pay? Wall Street’s generous standards. Lisa Kiell and Aaron Ellison But Ticonderoga analyst Douglas of Jones Lang LaSalle who THIS BEARS WATCHING: On Friday, Sipkin wrote in a report that business brokerage Ticonderoga Securities has gotten off to a slow start this year represented the tenant. downgraded shares of Greenhill & Co. and Greenhill could be forced to ei- to “sell” because the merger advice ther cut staff or cut pay to existing In keeping with The Durst Organization’s shop is paying its people so much. employees in order to reduce com- commitment to the environment, their Greenhill may be small, but it’s a pensation to more reasonable levels. offi ces are built to the highest standards big hitter in investment banking, Perhaps Greenhill’s problems are Coca-Cola of sustainability. with blue-chip clients like unique. But if they’re not, Mr. Sip- and AT&T. It pays its bankers quite kin’s report shows the investor com- well:Compensation costs ate up 58% munity is watching closely to see if of revenue last year, high even by banker pay is getting out of hand. Ⅲ

Member ® THE NUMBER OF MERGERS struck between stock or

REAL ESTATE BOARD OF NEW YORK commodity exchanges in the past two weeks. And one more seems yet to come, with Nasdaq and the 3 Intercontinental Exchange reportedly holding talks. 4 | Crain’s New York Business | February 21, 2011

20110221-NEWS--0006-NAT-CCI-CN_-- 2/18/2011 7:15 PM Page 1

NEW YORK,NEW YORK edited by Valerie Block

Mets legend lands new pitching job T HAS BEEN YEARS since John Franco (right) hung up his Mets Iuniform for the last time, but the storied left-handed reliever just landed a new pitching assignment—for the Municipal Credit Union. The 320,000-member MCU, which last year bought the naming rights to the Mets minor league stadium on Coney Island, will use Mr. Franco in TV and newspaper ads starting this week.The Amazins’ former team captain will also make public appearances on behalf of the union. The Brooklyn native learned about MCU firsthand. His father was a city sanitation worker and MCU member.The first TV spot will feature Mr. Franco, holding up the sanitation T-shirt he wore under his Mets uniform and telling of his father’s influence on his career. “The team at MCU is a lot like my dad,” he says. “They’re New Yorkers you can count on.” MCU President Kam Wong said, “John’s tremendous passion, dedication and work ethic, which led to his great success in professional baseball, are values we know our members respect.” Gambling on the The ship must reach figures last week, according to international waters, three miles industry sources. high seas, matey offshore, before the gaming tables Ms. Graham declined to open. During the winter, Opus comment on price. CITY DWELLERS hankering to play offers two cruises a day Tuesday blackjack, roulette or poker will through Sunday. Home for funny soon no longer need to travel out of state for action. Instead, they can A Huston memoir business easily catch a ride to Freeport, L.I., for a six-hour gambling cruise. ANJELICA HUSTON (right), the FORMER Saturday Night Live writer Opus Casino Cruise Lines,a granddaughter of fabled Ali Reza Farahnakian has found a 7-month-old venture of a Los actor Walter Huston and new spot for The Peoples Improv Angeles-based private equity fund, daughter of legendary Theater in Gramercy Park.The is making waves to get more New director John Huston, has 10,000-square-foot space, at Yorkers to climb aboard its 540- just sold a memoir 121 E. 24th St., includes a 99- passenger floating casino (below). which will cover all seat theater, and a coffee shop Starting in early March, Peter the highlights of her and bar.The theater, which Pan Bus Lines Inc. will pick up storied life. Readers gives emerging comedians and passengers at the Port Authority will find out actors a chance to develop CRAIN’S NEW YORK BUSINESS terminal (and in northern New everything they want their work, was previously Jersey) twice a week and head to know about the confined to a 2,200-square- 2011 Meeting Planner’s Guide directly to Freeport.The $35 bus Oscar-winning foot second-floor loft nearby. fare includes ship boarding, a buffet actress’ childhood in The theater, open just a and $40 of slot play. An inclusive Ireland, her parents’ month, is already packing in deal will also be available to Long complicated marriage more than 1,500 people a On April 25th, Crain’s will publish the 2011 Meeting Planner’s Island Rail Road passengers, with and her tumultuous week to watch comics like Guide, which will feature detailed listings of New York’s a $15 boarding fee.The relationship with Jack Ellie Kemper from The Office conference centers, hotels, event venues and more. Whether undiscounted fee is between $35 Nicholson. perform schtick.

newscom looking for a caterer, hotel, or event space, this guide will and $50, depending on the day. After penning her Mr. Farahnakian also Just over a third of Opus’ 88-page proposal, Ms. runs Simple Studios, on provide the most comprehensive list of venues and vendors patrons currently come from the Huston will now write West 29th Street, needed to produce your next corporate meeting or event. five boroughs, according to the book herself. “She where aspiring funny spokesman Allen Willinsky.“We has an exquisite voice,” people can rehearse, work on want to get that number up to as said winning bidder Nan Graham, sketch comedy or take classes. For advertising information please contact Trish Henry, Ad much as 60%,” he said. editor-in-chief of Scribner. “I’m Enrollment has grown from about Director, at 212.210.0711 or at [email protected] thrilled.” 50 students to more than 500 in Though Ms. Huston, the past four years. 59, is third-generation “A lot of people are coming Hollywood royalty, the because of losing their jobs,” Mr. Issue Date: April 25 | Ad Close: April 7 star of Prizzi’s Honor, The Farahnakian said. “They say Grifters and The Addams they’ve always wanted to try Family has appeared comedy, so while they’re looking primarily in small movies for something new, they take a for the past 20 years. class.” Nevertheless, there was enough interest in Contributors: Lisa Fickenscher, her memoir to drive Matthew Flamm, Daniel Massey, bidding into the seven Miriam Kreinin Souccar

6 | Crain’s New York Business | February 21, 2011 Project2:fp template.qxd 2/15/11 11:41 AM Page 1

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Mr. Yassky is trying to drum up support for the plan, for which he will seek City Council approval. He WORKERS’ COMP Crisis grows THE INSIDER is not deterred by objections from A SCANDAL THREATENING to shut down the taxi industry, which has made businesses across the state (Crain’s, by Erik Engquist and Jeremy Smerd dire predictions about several TLC Jan. 10) is worsening. Last summer, a initiatives that have worked out task force estimated that $600 well: Credit card machines have million was needed to pay the claims increased cabbies’ tips, the city’s of workers whose employers 4,000 hybrid taxis are holding up, participated in group self-insured and cabs’ GPS devices have yielded trusts that are now insolvent. a trove of data, while busting According to a memo accompanying istockphoto drivers who were overcharging. Gov. Andrew Cuomo’s budget legislation, the cost will be $800 million. “They don’t always [realize] The state has asked the businesses that participated in the trusts to cover what’s in their interests,” Mr. the deficit. Legislation proposed by Mr. Cuomo would seek to shut down the Yassky said of cab drivers and businesses for failure to pay. Previously, the state had threatened fines for owners. “None of us do.” businesses that did not pay what the government said they owed. “Borough taxis,” as Mr. Yassky John Giardino called them, are expected to have , an attorney with Phillips Lytle who is representing distinctive paint (not yellow), hundreds of these businesses, met last week with Deputy Secretary for Civil rooftop signs, fare meters, GPS Rights Alphonso David, who oversees the governor’s labor agenda. It was technology and perhaps partitions. the first high-level meeting with Cuomo administration officials as both sides Their licensing fees will fund try to hash out a way to plug the deficits. newscom enforcement, which should help Most of the bankrupt trusts were managed by a Poughkeepsie company, yellow taxis by reducing illegal Compensation Risk Managers. As attorney general, Mr. Cuomo alleged that street hails in Manhattan, Mr. CRM defrauded the trusts. He sued for $405 million. The companies that Inside the city’s Yassky said. were members of the trusts—and are on the hook for most of the $800 million—are unlikely to sign off on a proposed settlement that would net just $41 million, unless a deal is worked out with the state that reduces their Steel says job financial obligations. ‘borough taxis’ plan picture is bleak The governor’s budget proposes to absolve trusts that were unaffected by CRM’s mismanagement from having to contribute money from their reserves RONX RESIDENT Abdul Mohammed won $5,000 MAYOR Michael Bloomberg touted to cover the insolvent trusts’ deficits. worth of taxi rides when the Taxi and Limousine New York’s job growth as a model The deficit does not directly affect the state’s operating budget, and there for the nation in a December is enough money to pay current workers’ compensation claims. But revenue Commission randomly chose him from among speech, and again last week while from the workers’ comp program is regularly transferred to the state’s general 22,600 people who filled out a survey. Mr. unveiling his budget. But Deputy fund. In December, about $80 million was transferred. Mr. Giardino said that Mohammed was thrilled to win. But he might Mayor for Economic Development money should be used to pay down the $800 million deficit, which threatens Robert Steel painted a bleaker to bankrupt hundreds of small businesses. Bhave a hard time spending the money: Yellow cabs are in short picture at Columbia University supply in his borough. recently.“Unemployment is worse David Yassky (above), who heads the TLC, is trying to solve than [the official rate of ] 9%,” he that. He is tasked with implementing the plan unveiled by told students, because many people unemployment rate down. But they commission’s two investigators— have been out of a job so long that are nonetheless unable to pay their down from five a decade ago—are Mayor Michael Bloomberg in January to license livery cars to they have stopped looking for bills. juggling 92 cases. pick up street hails in the outer boroughs. work—which brings the “This is not a situation that is The upside for Mr. Cuomo: A getting better quickly,” Mr. Steel complaint filed last week by added. He pledged to make job opponents of his cuts to the state creation his top priority. budget might not get immediate attention. It alleges that the Committee to Save New York, a Sampson’s business lobby whose agenda pledge policy reflects the governor’s, violated state law by neglecting to list Mr. THE OFFICE of Senate Minority Cuomo as someone on whose Leader John Sampson reported that behalf the group lobbied. 57 of the 62 state senators have now signed the pledge being circulated by former Mayor Ed Koch Rangeling to support independent out of debt redistricting, ethics reform and budgeting based on generally THE DUO WHO MANAGE the accepted accounting campaign affairs of Rep. principles. Mr. Sampson Charles Rangel (left), Walter signed before the Swett and Darren Rigger, November election but are setting up fundraisers had initially declined, for the Harlem citing his policy of not congressman March 2 in signing pledges. At the Washington, D.C., and time he refused, Mr. later in the month in New n Sampson wrote a letter e York City.These will be Mr. w s supporting the pledge’s co Rangel’s first big campaign m three components. events since it became clear that he would seek re-election in 2012; former state Comptroller H. Carl A little less McCall recently hosted a Harlem public integrity fundraiser for the new Rangel Legal Expense Trust. A PLEDGE BY GOV. Andrew Cuomo to Mr. Rangel had been paying his “restore integrity” to Albany lawyers with campaign funds, but nonetheless did not spare the the legal defense fund has the Commission on Public Integrity advantage of being able to accept from getting its funding cut by corporate contributions. Any 10%, to $3.9 million, in the individual or entity can donate as governor’s proposed budget.The much as $5,000 annually. Ⅲ

For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider

8 | Crain’s New York Business | February 21, 2011

20110221-NEWS--0010-NAT-CCI-CN_-- 2/18/2011 3:04 PM Page 1

VIEWPOINT

City’s strong—with a state boost editor in chief Rance Crain publisher, vp Jill R. Kaplan

AYORAL BUDGETS invariably elicit $12,000 Christmas bonuses that retired cops and firefighters EDITORIAL wails from this constituency or that. receive.The state must also send the city more education aid editor Xana Antunes to comply with the court ruling from the Campaign for managing editor Glenn Coleman The reaction has become Pavlovian, deputy managing editors Valerie Block, with groups firing off statements and Fiscal Equity case. Erik Ipsen senior producer, projects Kira Bindrim rallying at City Hall against teacher Mr. Bloomberg prudently rolled over surpluses from the senior producer, news Elisabeth Butler Cordova layoffs, day care cutbacks, firehouse boom years and implemented nine rounds of agency cuts, contributing editor Elaine Pofeldt closures and the like. Doom and but the surpluses are exhausted and the city remains columnists Greg David, Alair Townsend susceptible to Wall Street slumps. Albany must allow the city politics editor Erik Engquist gloom were on display again last week as Mayor Michael pulse editor Barbara Benson Bloomberg proposed a fiscal plan for the year beginning July 1. to prepare for uncertain times ahead. senior reporters Theresa Agovino, M Aaron Elstein, Lisa Fickenscher, “We are now at the point where further cuts will do long- Matthew Flamm, Miriam Kreinin Souccar term harm,” warned the Progressive Caucus of the City reporters Marine Cole, Amanda Fung, Sweeping’s sunny side Daniel Massey, Adrianne Pasquarelli, Council, which called for tax increases to prevent “painful cuts.” Jeremy Smerd Reality check: The city is in decent shape. Revenue CITY COUNCIL SPEAKER Christine Quinn’s endorsement last art director Steven Krupinski deputy art directors Carolyn McClain, projections have increased by $2 billion since November. week of a measure to curb alternate-side parking would Daniel Mednick improve the quality of life for all New Yorkers, not just staff photographer Buck Ennis Despite the loss of $1.8 billion in federal and state school aid, copy desk chief Wendy Zuckerman the city budget will shrink only slightly, with no increase in motorists. copy editor Thaddeus Rutkowski research editor Dana Gordon tax rates.That’s a whole lot better than most cities and states The council intends to ease the scourge of alternate-side assistant research editor Suzanne Panara are doing. parking by halving street-sweeping on blocks rated 90% research interns Anya Khalamayzer, Laura Shin editorial interns Benjamin J. Spencer, Despite the strong numbers, the mayor is trying to clean for two straight years. Ms. Quinn is advancing a bill by Teresa Tomassoni motivate state lawmakers to send the city another $400 Brooklyn Councilman Brad Lander to do that. When it EDITORIAL AND ADVERTISING OFFICES million, end an unjustifiable pension bonus worth $200 reaches the mayor, he should sign it. 711 Third Ave., New York, NY 10017-5806 million annually and reform the policy on teacher seniority. Sweeping streets that are already clean is a pointless editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0259 The club that he wields is layoffs: Under his budget, 4,666 exercise, funded indirectly by the parking tickets generated Cable craincom nyk teachers would be dismissed. We suspect he will find the $269 by the practice. Essentially, it’s a transfer of wealth from Fax 212.210.0499 Entire contents ©copyright 2011 Crain million needed to avoid those layoffs, but it’s crucial that he get motorists to Department of Sanitation workers. And the Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP something back—notably, an end to the rule that protects the disruption to people’s lives is substantial. Calvin Trillin once Inc., used under license agreement. jobs of veteran teachers even at the expense of more talented wrote that in New York City, you can park your car on the TO SUBSCRIBE: street or you can have a full-time job, but not both. ones.The United Federation of Teachers should consent to Call 888.909.9111; fax 313.446.6777. give up this rule, which victimizes its own members. Alternate-side also forces people to drive, needlessly $3.00 a copy, $59.79 one year, $109.79 two years. www.crainsnewyork.com There are other clouds on the horizon. Surging pension increasing congestion and pollution. expenses are draining money from capital projects and social The Bloomberg administration has improved alternate- ADVERTISING AND MARKETING side schedules in recent years. Enacting the council bill advertising director Trish Henry services programs. It’s imperative that Albany establish a senior account managers new pension tier for city workers and discontinue the would continue that progress. Irene Bar-Am, Courtney McCombs sales manager, classified print & online John Gallagher sales coordinator, print & online Lulé Haznedari newsletter product manager CRAIN’S ONLINE POLL COMMENTS Alexis Sinclair credit Todd J. Masura 313.446.6097 marketing director Amy Crossman SHOULD COMPANIES assistant marketing manager Sabra Harrison BE ALLOWED TO REFUSE director, audience development Why whale on Walmart? John LaMarca TO HIRE SMOKERS? senior audience development manager FEAR OF COMPETITION company by politicians trying to score cheap Tarek Cotran Date of poll: Feb. 14 points are so un-American, so anti-business 297 votes general manager, interactive the hardball politics Crain’s describes in and so selective that they make me cringe. Marc Minardo “Unions squeeze Walmart partners” (Feb. 14) is —peter wilk Yes. Employers and web developer, interactive

. just an extension of the recent City Council Chris O’Donnell healthy employees 38% hearings on the the retailer’s right to open shouldn’t have to THE LITTLE GUY? HAH! NEW YORK PRODUCTION subsidize the higher stores in the Big Apple. At those hearings,

health care costs elected officials—including Public Advocate outrageous, these politicians pretending to production and pre-press director

and unproductive Michael Corsi 62%. Bill de Blasio, Comptroller John Liu, City have the little guy in mind. Where are their “smoke breaks” Council Speaker Christine Quinn and many of City Council hearings on how bodega advertising production manager that smokers often Suzanne Fleischman Wies bring. her colleagues—continued standing in the way. employees are treated? Are they really claiming Walmart would provide work for that Walmart treats its employees worse than PUBLISHED BY CRAIN COMMUNICATIONS INC. No. Companies construction contractors, their employees and so many other retail employers in the city do? chairman Keith E. Crain should not be thousands of the 9% of New Yorkers currently —doug peterson president Rance Crain allowed to out of work.The city would benefit with secretary Merrilee Crain treasurer Mary Kay Crain discriminate hundreds of millions of dollars in new sales, against smokers NYC PAROCHIALISM AT ITS WORST executive vp, operations William Morrow payroll and real estate tax revenue. Gloria Scoby as long as senior vp, group publisher cigarettes are Consumers have voted with their feet all this is like the Salem witch trials—farcical at group vp, technology, circulation, over America. Why not allow the nation’s No. 1 best. Walmart is at least as good as any other manufacturing Robert C. Adams legal and vice president/production & smokers adhere retailer to compete here as well? retailer now operating in the city. manufacturing David Kamis to smoking bans For those opposed: Don’t shop there, but do The City Council should be focusing on chief information officer Paul Dalpiaz while at work. give everyone else a choice. getting jobs, not stifling economic activity. corporate circulation/audience —larry penner —william butler development director Kathy Henry founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) istockphoto CRINGE-INDUCING POLS CRAIN’S WELCOMES SUBMISSIONS to its opinion For this week’s questions: Go to pages. Send letters to [email protected]. www.crainsnewyork.com/poll to have your say. walmart, please come and make millions of Send columns of 475 words or fewer to New York shoppers happy.The assaults on the [email protected].

10 | Crain’s New York Business | February 21, 2011 20110221-NEWS--0011-NAT-CCI-CN_-- 2/18/2011 3:19 PM Page 1

OPINION

With city and state budget battles looming, Crain’s invited the five borough presidents to identify the No. 1 initiative that the city should focus on to bolster the prospects for economic growth in their areas

BRONX jobs have fled overseas. upgrade and expand rail service but served as far as convention space. It small-town community, we are Fortunately, our light-manufac- would also generate 10,000 new identified a gap in the market for drawing big-box stores that value turing industry is thriving in jobs, produce $587 million in new midsize facilities—larger than hotel our shopping dollars. Target, Trad- Keep destination Williamsburg/Greenpoint, in Red wages and yield about $2.25 billion meeting rooms, but smaller than er Joe’s, Stop & Shop and Kohl’s are dollars: Open Hook/Gowanus and at the Brook- in economic activity. Javits. all opening new stores here. We lyn Navy Yard.Ford is expanding to The new Moynihan Station’s A Willets Point convention cen- attracted paper-recycling and pack- a first-class hotel the Brooklyn Army Terminal. But upgraded capacity and infrastruc- ter would generate jobs and tax rev- aging company Pratt Industries, Pfizer’s recent sale of its Williams- ture would also enable construction enue, and would provide a boost to the first manufacturing enterprise burg facility is a stark reminder of of a high-speed rail system for three the economy. Let’s make sure we to relocate to New York City in BY RUBÉN DÍAZ JR. the changing face of Brooklyn’s corridors in the Northeast. This don’t miss this golden opportunity more than 50 years. manufacturing base and why our would free capacity on crowded to meet a need that would benefit all Staten Island is also home to vi- ORE THAN ANYTHING ELSE, economy must adapt. commuter lines and cut travel times of New York City. brant town centers what the Bronx needs to The most important step, as I for a population that’s expected to with many mom- Mdrive its economy forward emphasized during my State of the grow significantly by 2050. and-pop stores, is a first-class hotel, complete with Borough Address earlier this A national, regional or state STATEN ISLAND which form the street-level retail, restaurants, en- month, is to create jobs. infrastructure bank could supple- backbone of our lo- tertainment, cater- My office has pushed for and ment crucial federal transporta- Reform fiscal cal economy. ing and convention committed more than $1 million in tion monies to fund vital projects newscom So Staten Island space. capital funds toward a proposed such as Moynihan Station. Presi- policies to boost is open for business. Last year, more business incubator, which could be dent Barack Obama has also called But we risk our economic future if than 2 million peo- the future location of a food-manu- for such a bank, which would bring businesses, jobs we don’t control government ple from all over the facturing business in one of our together private and public re- spending. newscom world visited the most job-starved central Brooklyn sources so that worthy initiatives My top priority for Staten Island Bronx Zoo, with neighborhoods. could be completed on time and on BY JAMES P. MOLINARO is jobs. But in order to create more another 700,000 visiting our botan- People will always need to buy budget. jobs, we need fiscal reform. We’ve ical garden. Thousands of cyclists things, ranging from food to gar- We can no longer ignore our in- HE MOST IMPORTANT initia- kicked the can all the way down the from across the region participated ments. Government frastructure in New York.Repairing tives for Staten Island’s eco- road, and now we have reached a in the Tour de Bronx. Fine-dining must develop poli- and enhancingit should be a top pri- Tnomic future are to keep tax- dead end. enthusiasts routinely come to cies that make ority. es low and to maintain balanced city I urge New Yorkers to get behind Arthur Avenue from around the homegrown entre- and state budgets.That is why I sup- the governor’s and the mayor’s re- globe to enjoy some of the best Ital- preneurial opportu- port Gov. Andrew Cuomo’s and form proposals. We need to cut ian cuisine anywhere. Moreover, nities economically QUEENS Mayor Michael Bloomberg’s fiscal spending,keep taxes low and reform Yankee Stadium is becoming a year- newscom feasible and discour- reforms. our pension system for new govern- round destination, hosting college age the outsourcing Build convention Staten Island is unique among ment employees. That is the best football games, boxing matches and of manufacturing jobs. the boroughs. As a suburb-like, way we can improve our economy. concerts. In order to remain prosperous, center to fill However, the lack of a first-class both Brooklyn and New York City hotel means that visitor dollars that must continue to reinvent their the midsize gap should contribute to the Bronx’s manufacturing bases by replacing overall economy are spent else- the smokestacks and assembly lines LET’S MAKE A DEAL: where. We have movement on a of yesterday with the smart manu- BY HELEN MARSHALL number of fronts, and my office is facturing technology of tomorrow. Seven steps to a successful acquisition currently working with the city’s HE CITY is moving forward Economic Development Corp. to with plans to redevelop Wil- make a new hotel near Yankee Sta- MANHATTAN Tlets Point, and I believe it is dium a reality. imperative that a convention center We have targeted the underper- Upgrade faulty remain integral to those plans. forming parking garages near the Queens County stadium as potential locations for infrastructure would serve as an development, given that many of ideal venue for trade these buildings are used little during to spur expansion shows and exhibi- the baseball season. A new hotel has tions that the Javits the potential to change the entire Center can’t accom- face of the Bronx, enhancing both BY SCOTT M. STRINGER modate because it’s tourism and business,and it must be simply too big or in- a major focus of borough officials EW YORK’S CRUMBLING convenient.The Willets Point site is and City Hall alike in 2011. bridges,tunnels and railways close to La Guardia Airport as well Nare a monument to short- as several intersecting highways and sighted planning and neglect. But public transportation, and it could BROOKLYN they also hold the key to opportuni- be accessible via ferry service in the ties for robust future. Create jobs using growth. Three in- Phase 1 of the transformation of terconnected proj- the area will bring infrastructure manufacturing’s ects in particular— improvements,new housing and re- Moynihan Station, tail to approximately 20 acres of A White Paper from Crain's New York Business new model high-speed rail and space. But the convention center newscom an infrastructure must not drop out of the entire proj- It's a great time to acquire a small or midsize company in New bank—could create ect, which includes more than 60 York City, thanks to the buyer's market. This white paper will BY MARTY MARKOWITZ thousands of new jobs and spur eco- acres in the shadow of Citi Field,the help you make the most of the current opportunities to grow nomic activity. USTA National Tennis Center, and through an acquistion. Download today. ROOKLYN WAS ONCE a leader in Pennsylvania Station operates at the open space and cultural attrac- manufacturing—home to gi- more than 100% above its original tions of Flushing Meadows Corona Cost: $29.95 ants such as Brillo and Brook- capacity.The facility,which is either Park. B To purchase, go to crainsnewyork.com/white_paper. lyn Flint Glass Works,the company the starting or ending point for 70% The viability of the convention that grew into the Corning glass of all intercity rail trips in the center was laid out in a $70,000 company. But over time, our bor- Northeast, handles 600,000-plus study by the Queens Chamber of ough has shifted to a service-based commuters daily. Completing Commerce, which found that New economy, and many manufacturing Moynihan Station would not only York City is significantly under-

February 21, 2011 | Crain’s New York Business | 11 20110221-NEWS--0012-NAT-CCI-CN_-- 2/17/2011 7:44 PM Page 1

OPINION

kind of help he needs. INDUSTRIAL STRENGTH: Meanwhile, he la- A success story Brooklyn Brewery opened bors under an extraordi- an $8 million addition to nary tax burden and ex- its plant last week. cessive regulation and fines. He likes to note on a smaller scale that when Brooklyn Brewery ran its own dis- HE FUTURE OF MANUFACTURING in New York went tribution network, it paid more in traffic fines on display last week when Brooklyn Brewery than it spent on gasoline opened an $8 million addition to its plant that will for the trucks. allow it to increase its brewing capacity tenfold. The expansion cre- ates 15 good jobs now This is an inspiring story of business success in the and maybe another 20 in Tcity,but also a cautionary tale for people who think that city and the future. Warehouse state government can stem the decline of manufacturing here workers make $33,000 a or that factory jobs can diversify the economy. year, with health insur- ance and a 401(k) plan. In the past two brewery equipment Last year,the city lost decades, a former jour- they have installed in 3,000 factory jobs. It nalist named Steve their new facility—all would take 85 expan- Hindy and his partners of it run by computers, sions on the order of

have turned their com- of course—will allow spencer tucker/nyc.gov Brooklyn Brewery’s to pany into one of the the company to move overcome that loss. The foremost craft beer most of its production zone around his factory and thanked but no one was willing to buck city has lost 100,000 manufacturing makers in the country. to the city from upstate state officials for an $800,000 grant unions that wanted to protect exist- jobs since 2000. More people work They started their busi- and eventually double they gave him. ing longshoremen’s jobs. Other city in colleges and universities than in ness in Brooklyn be- its sales to more than The IBZ has dampened real es- efforts to find a location also failed. manufacturing. cause it was where they $50 million. tate pressure by limiting residential In the end, Mr. Hindy expanded his Growing and diversifying an lived and because space GREG Mr. Hindy, who is conversions. Free money is always current facility in Williamsburg. economy that employs 3.7 million was cheap. They rode DAVID usually a very pointed welcome. But neither the city nor As for the financing, Mr. Hindy people requires the city to spur busi- the ferment of the bor- critic of government the state should get credit for mak- came up with the other $7.2 million nesses with much more scale than ough’s revival with a policies, thanked the ing this happen. to build the factory from internal this. It can help the Steve Hindys savvy that belied their business inex- mayor at the ribbon-cutting for es- Mr. Hindy longed to build a new cash flow,and could easily have bor- best by lowering taxes and eliminat- perience. The shiny stainless-steel tablishing an industrial business plant on one of the Brooklyn piers, rowed the rest. Funding isn’t the ing fines.

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12 | Crain’s New York Business | February 21, 2011 20110221-NEWS--0013-NAT-CCI-CN_-- 2/17/2011 6:50 PM Page 1

NEIGHBORHOOD JOURNAL

est plan envisions building the proj- Holdouts dig in at Willets Point ect in phases, and that the first of those does not require new ramps. In the meantime, it is proceeding as deals with 90% of landowners in the Lipsky, who helped kill the huge project—access ramps for the Van if the ramp approval were a formal- Businesses fight area designated for the first phase of Kingsbridge Armory development Wyck Expressway—as the weak ity.It plans to issue a request for pro- eminent domain, but the project and is seeking agree- in the Bronx last year.The group has point in its armor. posals in April to select a developer. ments with nine holdouts. Oppo- also hired Washington law firm “As we seek to reach agreements city goes ahead with nents of the city’s plan are largely Arnold & Porter. In the past two Ramps first with the nine remaining businesses, pinning their hopes on opposition to weeks, the group has fired off letters “THE CITY REPRESENTED to the court we will also begin the legal process development plan eminent domain.Its use to seize land to city officials and held a press con- in a sworn affidavit that it would not that gives us the option to condemn for private development has been a ference keynoted by state Sen.Tony take my clients’property by eminent these properties,” the agency said in BY HILARY POTKEWITZ lightning rod since the U.S.Supreme Avella, D-Queens, a longtime op- domain until it had received ap- a statement. Court ruled in favor of New Lon- ponent of the project. proval for ramps for the Van Wyck,” Maybe so, but Mr. Antonacci is HE BATTLE of Willets don, Conn., doing just that for a In the near term, the group is fo- said Mike Gerrard, senior counsel hunkered down for a legal siege. Point ain’t over, accord- project that never materialized. cusing on the EDC’s failure to gain with Arnold & Porter. “This fight is going to go on for years, ing to a dwindling group WPU hired lobbyist Richard approval for a key ingredient of the The EDC points out that its lat- and the city knows it,” he said. Ⅲ of local business owners in the western Queens Tneighborhood who are fighting city efforts to turn the 62-acre area into a mixed-use development. As the city’s Economic Develop- ment Corp.sent out notices last week EMPOWER for a March 2 hearing that is the first formal step to “buying” the land Women United in Philanthropy’s through eminent domain, the busi- ness owners said they were preparing The Power of Women to Make a Difference a lawsuit to block that action. HOPE FIFTH ANNUAL AWARDS LUNCHEON “We’re going to challenge them, and they’re going to challenge us,” Thursday, February 24, 2011 | 11:30a.m. - 2:00p.m. said Jerry Antonacci, owner of COMMIT CIPRIANI WALL STREET | 55 WALL STREET, NEW YORK CITY Crown Container, one of the largest of the 20 or so holdouts banded to- HOSTED BY KEYNOTE SPEAKER gether as Willets Point United. “We Lynda Baquero Susan L. Taylor Reporter, WNBC 4 New York Founder and CEO of National CARES have lots of outside supporters who Mentoring Movement and Editor-in-Chief feel very strongly about this eminent EXCEL Emeritus of Essence Magazine domain thing.” Maybe so, but thus far, the battle has largely gone the city’s way. Four HONOREES years ago, when the EDC unveiled Joy A. Collins Christine Driessen Cindy Price Gavin General Manager, Executive Vice President Partner, PwC its plans to build 5,500 residential LEARN Essence Communications and Chief Financial units, 500,000 square feet of office Officer, ESPN space, a hotel, parks and 1.7 million square feet of retail space at Willets Point, opposition was widespread. Dr. Karen L. Gould Melissa Hall Renee McClure Most of the 70 or so businesses—a YOUTH President, Senior Vice President, Lead Representative, Brooklyn College Assurant, Inc. Economic Development mixture of small car-repair shops & Community Relations, and a few larger manufacturers set up National Grid along the cratered, unpaved roads— INSPIRE were quick to condemn the effort. The original opposition group, Mihal Nahari Racquel Oden Shawn R. Outler Managing Director Managing Director, GVP of Multicultural the Willets Point Industry and Real- and Chief Compliance Officer, Merrill Lynch Merchandise and ty Association, was quickly formed The Depository Trust & Bank of America Vendor Development, STRIVE Clearing Corporation Macy’s, Inc. by a block of the 10 largest business owners in the area. But in November 2008,the three biggest companies all Ellen Pinschmidt Susan Raymond, Dia Simms negotiated agreements with the city Senior Vice President, Ph.D. EVP, General Manager, ACTION Strategy, Executive Vice President, Blue Flame Agency that their properties would not be Thomson Reuters Changing Our World, Inc. part of the 20-acre first phase of de- velopment. Instead, they would be EDUCATE allowed to operate as usual for at least Maryann Watt Agnes Zakrzewska three more years,and would have the Managing Director, Director of Corporate opportunity to sell their properties LEADERSHIP BNY Mellon Communications & Employee Giving, under more favorable zoning. Macy’s, Inc. A united front WOMEN UNITED FUND: EMPOWERING YOUTH THREE OTHER LARGE OUTFITS subse- Proceeds from this event benefit the Women PRESENTING LUNCHEON SPONSORS quently cut deals with the EDC to United Fund, which supports United Way move to city-owned land in neigh- of New York City youth empowerment boring College Point. initiatives. These include efforts to improve In the wake of those defections, the quality of early care and education, help the WPIRA went quiet. In early at-risk youth overcome barriers to attending 2009, a group of smaller business school, and help young people make a VIP PRE-LUNCHEON RECEPTION SPONSORS owners—trash haulers, sawdust successful transition to adulthood. makers and auto shops—formed Willets Point United, which to date FOR MORE INFORMATION has lived up to its name. on tables, tickets and journal ads please “There are certain people who visit womenunitedluncheon.org or call our the city has made extraordinary benefit office at 212-921-9070 x14 CLASS VALEDICTORIAN SPONSORS deals to accommodate,” said Mr. Antonacci, who described the city’s UNITED WAY OF NEW YORK CITY 2 Park Avenue New York, NY 10016 offer for his 2,300-square-foot www.unitedwaynyc.org property as insulting. “Then there are certain people who the city treats [badly].” At this point,the EDC says it has

February 21, 2011 | Crain’s New York Business | 13 20110221-NEWS--0014-NAT-CCI-CN_-- 2/17/2011 6:50 PM Page 1

SMALL BUSINESS CREATING U.S. JOBS: At C&L Group, Daniel Liebman helps companies outsource projects to technology Some work, at least workers in Reading, Pa. for those off beaten path

are factored in, but about 30% less workers up to speed on quality- IT consultant in city than they would be if C&L main- assurance requirements. part of trend toward tained the operation in New York. Janet-Lee Hatt, a senior vice “It’s a viable alternative to doing president at C&L, says Reading has outsourcing in lower- work in India,” said Mr. Liebman, a plentiful supply of skilled employ- cost, exurban areas whose 5-year-old C&L had rev- ees.The company chose the spot af- enues of about $18 million in 2010. ter analyzing locations within a 50- mile radius of New York City that

BY ANNE FIELD Appropriate labor is key had a much lower cost of living and levinekarjean THE FIRM IS PART of the growing a ready pool of programmers. HEN PEOPLE THINK trend of rural sourcing. According Reading was a clear choice, with for C&L training sessions or to oth- According to an executive of the about companies to industry experts, about 20 com- five universities nearby and more erwise check in.Some programmers group—who didn’t want to reveal its outsourcing com- panies around the country now pro- than 2,000 qualified IT profession- spend time at clients’offices,as well. identity for competitive reasons— puter program- vide outsourcing from areas where als whom Ms.Hatt described as un- pricing is just one reason he uses ming to an off- jobs are scarcer and wages are lower deremployed, or not interested in Language of business C&L and its programmers. siteW provider, Bangalore is probably than they are in urban centers. commuting to New York or ADDITIONALLY, observers said, there “If I’m dealing with an insurance the place that pops up. But if Daniel Mr. Liebman said that he is not Philadelphia. “Many of our pro- are fewer cultural barriers with rural company’s billing system, I need Liebman has anything to do with it, aware of any other local business do- grammers are willing to lose sourcing. Programmers in Reading someone who understands what Reading,Pa.,will soon come to mind. ing the same thing as C&L in infor- $10,000 in pay so that they can go to are more familiar with the way busi- needs to be done,” he said. “To get Mr. Liebman is president of mation technology. their kids’ soccer games in the ness is done in the U.S. and with the someone in India who can do that C&L Group, a Manhattan-based Experts warn that rural sourcing evening,” she said. nuances of particular industries. would be almost impossible.” consultancy that provides off-site isn’t a guaranteed success for Lower hourly wages are just the “It’s always easier to work with C&L hopes to expand by adding tech specialists, primarily for finan- providers. beginning of the benefits for cus- people from the same business cul- an operation in the Midwest.“We’re cial services businesses and insurers “You need a constant supply of tomers. Rural sourcing provides eas- ture,” Ms. Moore said. “It makes building a national footprint,” Mr. in the New York area. the right, cheap talent,” said Brandi ier access to programmers and elim- communication a lot simpler, with Liebman said, “and bringing jobs C&L’s 75 programmers are locat- Moore, a New York outsourcing inates many of the problems fewer misunderstandings.” back to the U.S.” Ⅲ ed in a facility in Reading. The costs specialist. encountered when dealing with That’s the case for one C&L there—typically $35 to $55 an Companies must also invest in overseas services, such as different client,a metro New York-based tech To sign up for Crain’s hour—are comparable to those in In- training people who may not stay time zones and language capabilities. group that specializes in insurance SMALL BUSINESS newsletter, go to dia once overseas-oriented expenses long. For instance, C&L holds In fact, clients from New York and does a significant amount of www.crainsnewyork.com/smallbiz. such as travel and management time three- to five-day classes to get make the two-hour trip to Reading business in the city.

REAL ESTATE Credit Suisse rent was around $200 a square foot. Deals Plus Mr. Kos was once located down- rules roost at tower town, but he moved up to a 2,000- square-foot store on Park Avenue Tide finally rising CREDIT SUISSE expanded its presence and East 58th Street several years at 315 Park Avenue South, signing a ago. Now he’s ready to return to his six-year lease for an additional downtown roots with a smaller and 48,000 square feet. The investment therefore less expensive shop. GOING UP in Long Island City bank leases about 90% of the “He wants a downtown vibe,” 330,000-square-foot building,which said Jason Pruger, the Newmark % change in prices of construction materials for 12 months ended in Jan. is now 100% occupied. Knight Frank Retail bro- “This is great news ker who, along with col- +4.9% AVERAGE MATERIALS as leases pick up for the real estate indus- league Ross Kaplan,rep- try,because banks are fill- resented landlord Eric +17.7% Diesel fuel ing up space again,” said Nelson of Vintage Real RISING REAL ESTATE MARKET is lifting many Craig Nassi,chief execu- Estate. “NoLIta contin- +11.5% Steel mill products boats, even Long Island City’s. tive of building owner ues to stay hot,”he added. 0.0% Concrete products With a mere 6.9 million square feet of office BCN Development. The Mott Street During the reces- space had housed a sec- -2.4% Brick, structural clay tile space, the western Queens neighborhood is one sion, banks dumped tion of Emilio’s Restau- of the smallest and, as it turns out, one of the acres of space as they re- rant,which is downsizing. Source: Associated General Contractors of America

most fragile commercial markets in the city. trenched, went bank- Mr.Kos will take posses- buck ennis A rupt or were absorbed by sion in April and expects “It was greatly affected by the downturn,” said Howard competitors—actions to open shortly after that. square feet for warehouse space and Kesseler of brokerage Newmark Knight Frank. that helped to send va- Peter Levitan of 27,000 square feet for its offices.The 315 Park Avenue South Even in 2010, average office rents dropped 1%, according cancies skyrocketing Sierra Realty Corp. rep- firm now occupies 60,000 square feet and drive down rents. resented the tenant. at 32-33 47th Ave. The lease will be to the latest report on the submar- square feet more than the amount Mr. Nassi said Credit Suisse is —adrianne pasquarelli up at the end of August. ket by Newmark Knight Frank. leased.But even that net absorption paying around $70 a square foot— “We ran out of space, and we are Things started looking up for figure was a sharp improvement similar to the levels that the build- growing,”said President Mike Mat- Long Island City early last over the previous quar- ing commanded before the reces- Electronics maker thews. “The new space is gorgeous OUTER SPACE year. In a huge coup, Jet- ter’s level. sion. BCN worked directly with amps up HQ and in pristine condition.” Blue Airways Corp.leased In another encourag- Credit Suisse on the deal, he noted. The firm has been expanding its more than 200,000 square ing sign, a maker of mu- —theresa agovino NEW SENSOR CORP. has outgrown its presence in Long Island City for a feet at the MetLife Build- 32K sical equipment recently space in Long Island City, Queens, decade.It also has a factory in Russia. ing on the northern edge SQUARE FEET arranged to add 30,000 and will be moving into a former “To find such a large tenant took of the area. And in the fi- leased in LIC square feet to its local foot- Menswear maven Anheuser-Busch distribution center us some time,” said Howard Kesseler nal quarter, tenants leased in the fourth print by moving to a for- heads to E. Houston nearby.The manufacturer of products of Newmark Knight Frank,who,with roughly 32,000 square feet quarter of 2010 mer beer distribution cen- including electronic musical instru- colleague Jordan Gosin,represented of space, almost double ter (see “Electronics maker HIGH-END MENSWEAR DESIGNER Jay ments and accessories has signed a landlord HDH. Offers are pending the total in the previous amps up HQ” at right). Kos is packing up his Upper East Side lease for 90,000 square feet at 55-01 for the remaining 70,000 square feet. quarter, according to the report. “The market is starting to recov- boutique and heading for the trendi- Second St. in Long Island City. The Larry Smith and Jason Auffarth The bad news:In the final three- er in terms of leasing activity,” Mr. er,cheaper Lower East Side.Mr.Kos asking rent was $15 per square foot; of Sholom & Zuckerbrot Realty month span, the amount of space Kesseler summed up. just signed a 10-year lease for 800 the lease was for at least five years. represented New Sensor. added to the market was 31,473 —amanda fung square feet at 293 Mott St.The asking New Sensor will use 63,000 —amanda fung

14 | Crain’s New York Business | February 21, 2011 20110221-NEWS--0015-NAT-CCI-CN_-- 2/17/2011 6:51 PM Page 1

ACCOUNTING INSIDE Largest accounting firms and their armies of NY area tax pros PAGE 19 ONLINE Q&A Three fast fixes for New York’s mess of a state tax code www.crainsnewyork.com

Less than labbé john meets the eye

Government-accounting gimmicks mask a $120B hole in NY state’s pensions not. It’s part of stirring people up so that something happens [politically].” BY JUDITH MESSINA But a growing chorus of independent-minded number-crunchers warn HEN THE SUBJECT OF PENSION REFORM comes up these that the rosy outlook will hold up only under the most optimistic assumptions days, union bosses like to point out that New York is in about the investment returns for the money in the pot. Such assumptions, much better shape than other states. Maybe that’s because they say, have for years induced legislators to hand out generous benefits under government accounting standards, New York’s while underfunding the state’s and municipalities’ true long-term pension public employee pensions are funded at more than 100%. obligations—by an estimated $120 billion, some recent calculations show. W“We’re the best in the country,” said Kenneth Brynien, president of the “These are life-threatening liabilities for local governments,” said Donald state Public Employees Federation. “To say we’re having a problem—we’re See PENSIONS’ TENSIONS on Page 16

gains. Even income received from Health law brings tax man on house calls rental property is subject to the tax. A couple of options have largely been overlooked in the lion cost over its first decade. People WHAT TO DO? One option is to simply Wealthy face new payroll, investment debate over the law itself. But indi- are already looking for ways to blunt pay the tax. Another is to move your viduals who earn more than the new taxes’ impact, ac- investments around—allocate more charges. Let the dollar shuffle begin $200,000 and couples who cording to those who ad- investment dollars to tax-free mu- earn more than $250,000 will 3.8% vise them. nicipal bonds,for example,and stuff “The health care law is loaded up face a 0.9% increase in LEVY on invest- “[When it comes to tax as much money as you can into tax- BY STEVE GARMHAUSEN ment income front with taxes,” said Lewis Taub, Medicare payroll taxes start- for wealthier planning], you can’t do sheltered retirement plans. tax director in the commercial group ing in 2013. A 3.8% levy on tax filers things at the eleventh Those who fear that income tax- EVERYONE KNOWS the new federal at RSM McGladrey’s New York of- investment income will take starting in 2013 hour,” said Mr. Taub. es will be raised in a couple of years health care law will change the fice.“You’ve got to start planning for effect the same year. The 3.8% tax will apply on top of the health care taxes may health insurance system, but if you them now.” In all, taxes on high-net-worth to a wide range of investment in- want to take bolder action, said fi- happen to be well-off, it will signif- New taxes to pay for the Patient households are expected to cover come, including interest, dividends, nancial adviser Jeff Sica, who serves icantly change your tax bill as well. Protection and Affordable Care Act more than 20% of the law’s $400 bil- annuities, royalties and capital See HEALTH REFORM on Page 18

February 21, 2011 | Crain’s New York Business | 15 20110221-NEWS--0016,0017-NAT-CCI-CN_-- 2/17/2011 6:52 PM Page 1

REPORT Pensions’ tensions

Continued from Page 15 es—and provide for the growing cadre Boyd, a senior fellow with the of retirees—the state will have to up Rockefeller Institute of Govern- its contributions, which will put the ment, an Albany think tank. “Get- squeeze on other essential services. ting that information in the public Even if the state realizes its pro- domain is crucial to an understand- jected returns, the contributions it ing of the riskiness of the situation.” will have to make to cover the needs Former Wall Street financier of state and local retirement pools Harry Wilson—the 2010 Republi- could more than double over the can candidate for state comptroller, next several years.The city will sink who made pension reform a focal $7 billion into its pension funds this point of his campaign—added: year, up from $1.5 billion in 2001. “There’s gray in a lot of things in life. While these circumstances have No Other Accounting Firm Offers More But insisting there’s no problem here laid the groundwork for a wonky dis- is like saying gravity doesn’t work.” cussion of investment returns, the Intellectual Capital Under One Roof. consequences will be far from aca- A voice in the wilderness demic. Under actuarial methods Anchin, Block & Anchin LLP What does it mean to be the largest single-office MR. WILSON’S CAUSE may not have commonly used by states,New York’s Accountants and Advisors accounting firm in the United States? Approvals, won him the election,but the urgency pensions look healthy,funded in ex- around the issue has only grown. cess of 100%, 2009 financial reports decisions, and solutions to your issues are all made New York’s public pension funds show. A study by The Pew Charita- Frank A. Schettino, CPA right here. It means there are never approvals required cover some 1 million state workers, ble Trusts even called the state’s pen- from distant offices or management. Answers to your retirees and beneficiaries, plus sions “solid,” especially in light of Managing Partner 430,000 current and former teach- steep shortfalls in many other states. [email protected] questions are never more than a few steps away. ers and school administrators. The But the assessments of New The intellectual capital we have under one roof is retirement pool for state workers York’s status have been based on the unsurpassed. Discover the Anchin difference. Let us be and police and fire department em- assumption that the funds would 1375 Broadway, New York, NY 10018 ployees—which together form the earn an average of 8% year after year, 212.840.3456 • www.anchin.com Your Expert Partner. New York State Common Retire- and decades into the future, as the ment Fund, overseen by the state bills for today’s workers come due. comptroller’s office—lost $45 bil- The higher the estimated rate, the lion, or 29% of its value, in the fiscal more the funds are assumed to be year that ended in March 2009, due growing on their own, and the less to the collapse of financial markets the state and municipalities need to around the globe. pay into the pools to fully fund them. The independently run state Critics say that projecting such a teachers fund lost another $23 bil- high rate of return is dangerous,giv- lion in the year ended in June 2009, en that returns have been low for and separately administered pen- years and that states and cities have sion funds for New York City work- little margin for risk: Pensions have ers lost $21 billion, or 22% of their to be paid no matter what. value, in the same period. “You need an accurate picture of With the economy in recovery how big the hole is,” said Jeremy through much of 2010 and the stock Gold, a Manhattan-based econo- market climbing again, the pension mist and actuary, who has long ar- funds have regained some momen- gued that public pension funds tum. But as of last September, the should use measures “that are ap- Common Retirement Fund, at $133 propriate to every other financial in- billion, was nearly $10 billion below stitution in the world.” 2006 levels.To make up for the loss- A very different picture indeed TIER PRESSURE: BENEFITS REFORM IN 2009, GOV. DAVID PATERSON won a round of modest pension reforms affecting state employees, workers in municipalities throughout the state and teachers in New York City. The legislation created a new tier of pension benefits, Tier V, that applies to workers hired after Jan. 1, 2010. Among other things, it caps the amount of overtime that can be credited toward pension payouts, increases the number of years required for vesting and requires employees to contribute more toward their retirements. But because the changes apply only to new hires, savings won’t be realized for decades. Gov. Andrew Cuomo has called for a new comprehensive round of reforms, but he has been vague about what he will ask for. During his campaign, he railed against overtime padding in the years before retirement. Good-government types say an increase in the retirement age and some form of defined-contribution pension, like a 401(k), should also be part of the deal. “Higher [employee] contribution amounts would have a big impact on the bottom line,” said Carol Kellermann of the Citizens Budget Commission. Last fall, a CBC report noted that New York taxpayers contribute seven times more than public employees to state pension funds, versus a national ratio of 2-to-1. Mr. Cuomo has said he will tackle pension reform after the state budget is approved. One step he might take is proposing another tier, presumably with scaled-down benefits, for the next cadre of hires. It’s not clear where he stands on the hot-button issue of 401(k)s, anathema to the public employee unions. Winning concessions from unions and their Albany allies just a year after the last round went into effect won’t be easy. “I’m not sure what else there is that would save any significant money,” said Kenneth Brynien of the state Public Employees Federation. “We took care of the big things.” —JUDITH MESSINA

16 | Crain’s New York Business | February 21, 2011 20110221-NEWS--0016,0017-NAT-CCI-CN_-- 2/17/2011 7:15 PM Page 2

FULL FUNDING VS. FOOL FUNDING NEW YORK STATE’S largest public-worker pension fund had about $130 billion in assets and Lots of advisors suit up, was more than fully funded at last count, in March 2009, according to the liberal account- ing standards that local governments use when determining future pension obligations. But the picture is dramatically different when one uses more stringent corporate-accounting standards, which assume smaller average annual stock market returns in the years ahead. show up and keep up. But how many know when $130B $130B to speak up?

101% funded 56% funded Using government accounting Using corporate accounting

Source: Manhattan Institute’s Empire Center for New York State Policy Team McGladrey Golfer Zach Johnson and his caddie, Damon Green. Power comes from being understood.SM emerges when a more conservative “It’s wholly inappropriate for A strong strategic partner should know you and your organization well enough assumption is used, such as the rate public-sector pension funds,” he to know when to step up with insights, suggestions and fresh ideas. And when you of 5% to 6% suggested by many ac- continued.“Private companies have trust the advice you’re getting, you know your next move is the right move. countants and economists and used a possibility of going out of business. Whether state and local tax, international issues, or deciphering complex tax issues, in the private sector.For the year end- State governments do not.” we make life easier by understanding you, first, and then bring fresh tax advice. ed in March 2009, for example, the state’s retirement pools would have Revising the tallies This is the power of being understood. This is McGladrey. covered 56% to 60% of the projected NEVERTHELESS, New York City’s Experience the power. Go to zachisunderstood.com. pension obligations,not 100%-plus. chief actuary now regularly includes Or call East Region Tax Practice Leader Jeffry Seidel, at 212.372.1300. By the following year, based on a alternative assumptions in annual rate of about 5%, the funds were reports.Using the actual market val- RSM McGladrey, Inc. $120 billion in the hole, says a study ue, the New York City firefighters ©2011 RSM McGladrey, Inc. and McGladrey & Pullen, LLP. All Rights Reserved. NT10-04477 by the Manhattan Institute’s Empire pension fund would have been only Center for New York State Policy. 41% funded at the end of the 2008 Others have joined the chorus of fiscal year, for example, versus the concern. Former Federal Reserve 56% reported. Board Vice Chairman Donald Kohn The disconnect,and the growing two years ago warned public retire- pension burden, are roiling bond ment systems around the country markets. As a result, the Municipal that their practice “made little sense Securities Rulemaking Board is from an economic perspective.” considering new disclosure require- House Budget Committee Chair ments for public pension liabilities. Paul Ryan in December introduced All of this is providing fodder for a bill that would require public pen- state politicians who want to see big sion funds to assess alternate fund- changes on the negotiating table in ing scenarios.And the official arbiter Albany this year, such as putting of public accounting new hires into methods, the Govern- 401(k)-style defined- ACCOUNTABILITYWITHOUT mental Accounting New York’s contribution plans Standards Board, is annualized that would cap the considering changes state’s cash contribu- QUESTION

that could force states tions and require em- and municipalities to five-year ployees to put more ACCOUNTABILITYWITHOUT use more conservative return: money into their own rates in a few years. retirements. (This QUESTION Because a more real- proposal would do istic assessment of lia- 4.2%. Its nothing to stem state bilities could drastical- and local contribu- To succeed today, a business person must have complete faith in the advice that he or she receives in ly raise New York’s 10-year tions for retirees and order to act with confidence. At Rothstein Kass, our advice does not come pre-packaged or off the shelf. state and city pension current employees.) It is always specific, highly focused and grounded in the realities of your business. Whether the state of the contributions, even return: 3.7% Of course, the economy is tranquil, fluid or turbulent, you can rely on Rothstein Kass to help identify, protect and advance many proponents of the surging stock market your company’s interest. idea are not advocating has helped pension a wholesale shift. But funds recover some of Rothstein Kass is a professional services firm that has served privately held and publicly traded companies, they want more disclosure as soon as their losses in recent months. And individuals, and families for over 50 years. Beyond audit and tax services, the firm provides a full array possible—and slowly, numbers are supporters of higher projected return starting to creep out. rates point out that for the past 20-year of integrated services, including strategic business counseling, regulatory compliance and SEC advisory A state actuarial report last Au- span,annualized returns topped 8%. services, insurance and risk management consulting and family office services. gust pointed out that if New York But that reflexively bullish view used a rate of return of 5%, contri- of the investment world is changing. If you understand the value of a skilled and trusted advisor and would like to find out how Rothstein Kass can butions in fiscal 2011 would rise by As of March 2010,by the state’s own assist you, contact Steven Kass, Co-CEO and Co-Managing Principal, at 973.994.6666 or [email protected]. a stunning 300%,to $14 billion from calculations, the five-year annual- over $3 billion. In the wake of that ized return for the state Common report and a recommendation by the Retirement Fund was 4.2%, and the AUDIT TAX ADVISORY state’s actuary, New York comptrol- 10-year return, 3.7%. Years of simi- Beverly Hills ler Thomas DiNapoli lowered the larly low returns simply can’t do the Dallas state benchmark to 7.5%,a level that job of filling the long-term shortfall Denver critics say is still not low enough. that economists are warning about. Grand Cayman “Properly run pension funds con- “The 1990s [bull market] was an New York Orange County tinually review their rates of returns,” aberration driven by the tech boom,” Roseland Mr.DiNapoli said last week,adding: said financier Mr. Wilson, speaking San Francisco “Mixing private-sector and public- of the pumped-up returns of that Walnut Creek sector accounting practices presents period.“Those things happen every a distorted picture of pension fund 50 to 100 years and are not the kind www.rkco.com solvency. It’s a blatant scare tactic. of thing you should count on.” Ⅲ

February 21, 2011 | Crain’s New York Business | 17 20110221-NEWS--0018-NAT-CCI-CN_-- 2/17/2011 6:53 PM Page 1

REPORT ACCOUNTING

NEVER TOO EARLY FOR TAX PLANNING Health reform brings tax man STARTING IN 2013, Health care reform (aka the Patient Protection and Affordable Care Act) begins imposing new taxes on high-net-worth households that will cover an estimated 20% of the health reform law’s Continued from Page 15 “That could be a major mistake suggested, is to buy a partnership in $400 billion cost over its first decade. The tax hits that year include: high-net-worth clients from his people make,” he explained. a business with a healthy cash flow.  A 0.9% hike in Medicare payroll taxes for individuals who earn more than Morristown, N.J., office. “They’ll opt into an installment sale The 0.9% spike in payroll tax, al- $200,000 and couples who earn more than $250,000 “My philosophy is that you have and end up [on installments starting though a smaller burden, may be  A 3.8% levy on investment income for the same crowd, including income to prepare for the worst-case sce- in 2013] getting hit with this tax out more difficult to avoid. One strate- from interest, dividends, annuities, royalties and rental property. nario,” he said. of the blue.” gy is to ask your employer to move Those who draw income from up the payment of bonuses that are To help minimize the payroll tax hit, consider asking for your 2013 Buy a stake bonus in late 2012 instead. To weaken the investment-income bite, rental properties might want to con- due in early 2013 to late 2012 in- sider selling them prior to 2013— ANOTHER WAY to head off the 3.8% tax stead. allocate more investment dollars to tax-free municipal bonds and save and get payment in a lump sum is to look for income outside of con- Or—if you have an unusually more money in tax-sheltered retirement plans. rather than in annual installments, ventional stock- and bond-market trusting relationship with your Mr. Sica noted. investments. One option, Mr. Sica boss—try asking for your income to be front-loaded. Say your salary is $500,000 a year, explains Edward Rayner,a partner with law firm Pry- or Cashman. Ask your employer for $800,000 in 2011 and 2012,and just $200,000 in 2013 and 2014. An obvious problem,Mr.Rayner concedes, is that your boss can’t know whether you’ll stick around after two years. “You’re kind of lim- ited in what you can do,” he said. Mr. Rayner’s clients aren’t fo- cused on 2013 just yet. But if suc- cessful businesspeople need a tax is- sue to get worked up about right ‘It’s important not to do things solely for tax purposes’

away, they can find one in the VIP health insurance coverage that many companies reserve for their highly paid employees. Elite health insurance plans, ones that are off-limits to the rank and file, appear to be a doomed species. Since last fall, they have faced a stiff excise tax of $100 per day per covered employee. Companies with pre-existing plans are exempt from the tax. But their “grandfathered” status goes out the window if they adjust their plan—and adjustments occur con- stantly to such plans’ deductible and co-pay arrangements. “Any change to the terms pretty much blows your exemption,” said Mr. Rayner. Don’t jump the gun TO BE SURE, a lot could change be- tween now and 2013: Tax rates could skyrocket, or not. The health care law could be changed, or not. That’s why Mr.Taub suggests to his clients that they make tax-manage- ment plans now but set them aside until, and if, they’re needed. If the health care taxes do go into effect as planned, the best thing to do may be nothing.Mr.Taub is used to reminding clients that taxes are not the only consideration when in- vesting their money. “We tell those very worked-up clients,‘Look, we understand these taxes are coming out of your pock- et. But it’s important not to do things solely for tax purposes,’”Mr. Taub said. Ⅲ

18 | Crain’s New York Business | February 21, 2011 20110221-NEWS--0019-NAT-CCI-CN_-- 2/17/2011 6:53 PM Page 1

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February 21, 2011 | Crain’s New York Business | 19 nb08p21-22cl.qxp 2/18/11 1:32 PM Page 20

ENTRANCE MATTING FINANCIAL SERVICES PUBLIC & LEGAL NOTICES

Notice of Qualification of Notice of Qualification of P6 SBCO 48 Notice of Qualification of 25 Fifth Ave. AllianceBernstein AIS - St NYC Lodging LLC. Authority filed Holdings, LLC. Authority filed with Credit/Distressed Strategies LLC. with NY Dept. of State on 1/27/11. Secy. of State of NY (SSNY) on 2/8/05. Authority filed with NY Dept. of State Office location: NY County. LLC Office location: NY County. LLC on 12/21/10. Office location: NY formed in DE on 11/19/10. NY Sec. formed in Delaware (DE) on 1/27/05. County. LLC formed in DE on 12/17/10. of State designated agent of LLC SSNY designated as agent of LLC NY Sec. of State designated agent of upon whom process against it may upon whom process against it may be LLC upon whom process against it be served and shall mail process to: served. SSNY shall mail process to: may be served and shall mail process c/o CT Corporation System, 111 8th c/o RFR Holding, LLC, 390 Park Ave., to the principal business addr.: 1345 Ave., NY, NY 10011, regd. agent NY, NY 10022, registered agent upon VISIT OUR WEBSITE Ave. of the Americas, NY, NY 10105. upon whom process may be served. whom process may be served. DE DE addr. of LLC: The Corporation DE addr. of LLC: 1209 Orange St., address of LLC: RL&F Service Corp., CRAINSNEWYORK.COM Trust Co., 1209 Orange St., Wilmington, Wilmington, DE 19801. Cert. of Form. One Rodney Sq., 10th Fl., Tenth and DE 19801. Cert. of Form. filed with DE filed with DE Sec. of State, 401 King Sts., Wilmington, DE 19801. Sec. of State, Townsend Bldg., Dover, Federal St., Dover, DE 19901. Arts. of Org. filed with DE Secy. of DE 19901. Purpose: any lawful activity. Purpose: any lawful activity. State, 401 Federal St., Dover, DE 19901. Purpose: any lawful activity. LUXURY PROPERTY Notice of Formation of ETS CAPITAL Notice of Formation of AM STERN II, LLC. Arts. of Org. filed with Secy. CAPITAL, LLC. Arts. of Org. filed with LIMITED LIABILITY COMPANY of State of NY (SSNY) on 01/04/11. Secy. of State of NY (SSNY) on Notice of Formation of Limited Liability FOR SALE / EAST HAMPTON Office location: NY County. SSNY 01/06/11. Office location: NY County. Company (LLC) Name: DS FLORIDA designated as agent of LLC upon SSNY designated as agent of LLC LLC. Articles of Organization filed by whom process against it may be upon whom process against it may the Department of State of New York served. SSNY shall mail process to be served. SSNY shall mail process on 12/31/2010. Office location: County Timothy Terry, 667 Madison Ave., to Timothy P. Terry, 667 Madison of New York. Purpose: any and all 24th Fl., NY, NY 10065. Purpose: Ave., 24th Fl., NY, NY 10065. lawful activities. Secretary of State of Any lawful activity. Purpose: Any lawful activity. New York (SSNY) designated as agent of LLC upon whom process against it may be served. SSNY shall mail a Notice of Qual. of UNA-USA, LLC. Name of LLC: Highview Capital copy of process to: 1 Battery Park Auth. filed Sec’y of State (SSNY) Holdings LLC. Art. of Org. filed Dept. Plaza, 26th Floor, New York, NY 10004 of State of NY on 1/18/11. Off. Loc. 10/6/10. Office loc.: NY County. LLC in NY: NY Cty. Secy. of State desig- org. in DE 8/12/10. SSNY desig. as STUNNING nated as agent of LLC upon whom agent of LLC upon whom process Name of LLC: Benet Les Designs LLC. BEACH HOUSE process against it may be served. against it may be served. SSNY shall Arts. of Org. filed with NY Dept. of IN THE DUNES Sec. of State shall mail a copy of mail copy of proc. to NRAI, 875 Ave State: 10/28/10. Office loc.: NY Co. Amagansett. process to: Levi Lubarsky & of the Americas, NY, NY 10001. DE Sec. of State designated agent of LLC Impeccable Feigenbaum LLP, Attn: Terrence M. off. addr.: 160 Greentree Dr., Ste. 101, upon whom process against it may 6,000 SF+/- Bennett, 1185 Avenue of the Dover, DE 19904. Cert. of Form. on be served and shall mail process to: summer cottage Americas, 17th Fl., NY, NY 10036. file: SSDE, Townsend Bldg., Dover, c/o Business Filings Inc., 187 Wolf Rd., next to reserve. DE 19901. Purp.: any lawful activities. Ste. 101, Albany, NY 12205, regd. agt. Exclusive $11.8M Purpose: any lawful activity. WEB# 35028 upon whom process may be served. Purpose: any lawful act. Joseph DeCristofaro Notice of Formation of LTD EDITIONS I Notice of Formation of Dialect - NY Salesperson LLC. Arts. of Org. filed with NY Dept. LLC. Arts. of Org. filed with Secy. of 631.873.5362 of State on 1/7/11. Office location: State of NY (SSNY) on 1/13/11. Notice of Formation of Nest Two Bee NY County. Princ. bus. addr.: 27 E. Office location: NY County. SSNY LLC. Articles of Org. filed with Secy. 61st St., NY, NY 10065. Sec. of State designated as agent of LLC upon of State of NY (SSNY) on 12/21/10. designated agent of LLC upon whom whom process against it may be Office loc.: New York Co. SSNY des- process against it may be served served. SSNY shall mail process to: ignated as agent of LLC upon whom PUBLIC & LEGAL NOTICES and shall mail process to: c/o Lichter United Corporate Services, Inc., 10 process against it may be served. Gliedman Offenkrantz PC, 551 5th Bank St., Ste. 560, White Plains, NY SSNY shall mail process to the LLC, Ave., 24th Fl., NY, NY 10176, Attn: 10606, registered agent upon whom Attn: Debra Zegelstein, 166 East 63rd ANGELS & EMERALDS, LLC, a NOTICE OF FORMATION of Life Kenneth Gliedman, Esq. Purpose: process may be served. Purpose: St., Unit 2B, New York, NY 10065. domestic Limited Liability Company Realty Gamma, LLC. Art. of Org. filed any lawful activity. any lawful activity. Purpose: any lawful act or activity. (LLC), filed with the Sec of State of with Secy. of State of NY (SSNY) on NY on 1/20/11. NY Office location: 10/26/10. Off. loc.: NY County. SSNY New York County. SSNY is designated designated as agent upon whom Notice of Formation of Pelpar Capital Notice of Formation of KITAPART, LLC. Notice is hereby given that a license, as agent upon whom process against process against LLC may be served. LLC, Art. of Org. filed Sec’y of State Arts. of Org. filed with Secy. of State number (PENDING) for on-premises the LLC may be served. SSNY shall SSNY shall mail a copy of any (SSNY) 12/10/10. Office location: NY of NY (SSNY) on 01/20/11. Office liquor, has been applied for by the mail a copy of any process against process against the LLC served County. SSNY designated as agent location: NY County. Princ. office of undersigned to serve liquor in a restau- the LLC served upon him/her to upon him to the principal business of LLC upon whom process against LLC: 208 E. 32nd St., Unit A, NY, NY rant under the Alcoholic Beverage BlumbergExcelsior Corporate loc.: C/O the LLC, 150 W 51st Street, it may be served. SSNY shall mail 10016. SSNY designated as agent of Control Law at 424 Amsterdam Services, Inc., 62 White St., NY, NY #2019, NY, NY, 10019. Purpose: any copy of process to c/o Kriss & LLC upon whom process against it Avenue, New York NY 10024 for on- 10013. General Purposes. lawful act or activity. Feuerstein LLP, 360 Lexington Ave., may be served. SSNY shall mail process premises consumption. G & J CAFE´ S. 1200, NY, NY 10017. Purpose: any to the LLC at the addr. of its princ. INC. d/b/a CAFE´ CON LECHE lawful activities. NOTICE OF FORMATION of Lori Notice of Formation of Sixty-Three office. Purpose: Any lawful activity. Farber Designs LLC. Arts of Org filed LLC. Arts. of Org. filed with Secy. of MIKE ROLLINS FINE ART LLC, a with the Secy of State of NY (SSNY) State of NY (SSNY) on 4/8/10. Office Notice is hereby given that a license, Notice of Formation of Y FOUR BY RSR, domestic Limited Liability Company on 10/26/10. Office loc: NY Cty. location: NY County. SSNY designated number 1251503 for on-premises LLC. Arts. of Org. filed with Secy. of (LLC), filed with the Sec of State of SSNY designated as an agent upon as agent of LLC upon whom process liquor, has been applied for by the State of NY (SSNY) on 01/27/11. NY on 1/21/11. NY Office location: whom process may be served and against it may be served. SSNY shall undersigned to sell liquor in a lounge Office location: NY County. Princ. New York County. SSNY is desig- shall mail a copy of any process to: mail process to: c/o The Parker Trust, under the Alcoholic Beverage Control office of LLC: 622 Third Ave., NY, NY nated as agent upon whom process 101 N. Brand Blvd, 10th Fl, Glendale, 140 E. 63rd St., Apt. 12C, NY, NY Law at 700 Eighth Avenue, New York, NY 10017. SSNY designated as agent of against the LLC may be served. CA 91203. Principal business 10065. Purpose: real estate ownership 10036 for on-premises consumption. LLC upon whom process against it SSNY shall mail a copy of any process address: 200 W 72nd St, 3K, NY, NY and any other purposes permitted by RP/HH MILFORD PLAZA OWNER, may be served. SSNY shall mail against the LLC served upon him/her 10023. Purpose: any lawful acts. applicable law. L.P. d/b/a THE MILFORD PLAZA process to c/o Zengo NYC, LLC at to Michael E. Rollins, Jr., 105 Bowery, the princ. office of the LLC. Purpose: Third Fl., NY, NY 10002-4900. Restaurant management services. General Purposes. Notice of Qualification of SUNGEVITY Notice of Qualification of SANFORD NOTICE OF FORMATION of Wild SD, LLC. Authority filed with Secy. of W. MORHOUSE LLC. Authority filed Brands, LLC. Article of Organization State of NY (SSNY) on 02/08/11. Office with Secy. of State of NY (SSNY) on filed with the Secretary of State of NOTICE OF FORMATION OF Notice of Qualification of James H. location: NY County. LLC formed in 02/09/11. Office location: NY County. NY (SSNY) on 09/10/10. Office loca- REGISTERED LIMITED LIABILITY Coleman, LLC App. for Auth. filed Delaware (DE) on 12/02/10. Princ. LLC formed in Delaware (DE) on tion: NY County. SSNY has been PARTNERSHIP. NAME: REID GLYNN, Sec’y of State (SSNY) on 2/1/11. office of LLC: 66 Franklin St., Ste. 310, 03/20/08. Princ. office of LLC: 1301 designated as agent upon whom LLP. Certificate of Registration was Office location: New York Co. LLC Oakland, CA 94607. SSNY designated Ave. of the Americas, NY, NY 10019. process against it may be served. filed with the Secretary of State of org. in DE 12/9/10. SSNY designated as agent of LLC upon whom process SSNY designated as agent of LLC The Post Office address to which the New York (SSNY) on 01/06/11. as agent of LLC upon whom process against it may be served. SSNY shall upon whom process against it may be SSNY shall mail a copy of any Office location: New York County. against it may be served. SSNY shall mail process to c/o Corporation served. SSNY shall mail process to c/o process against the LLC served SSNY has been designated as agent mail copy of process to 40 W. 57th St, Service Co. (CSC), 80 State St., Albany, Corporation Service Co. (CSC), 80 upon him is C/O the LLC 162 E. 90th of the LLP upon whom process 20th Fl, New York, NY 10019. Office NY 12207-2543. DE addr. of LLC: State St., Albany, NY 12207-2543. DE St, Apt 5W, New York, NY 10128. against it may be served. SSNY shall address in DE 40 E. Division St, Ste A, c/o CSC, 2711 Centerville Rd., Ste. addr. of LLC: CSC, 2711 Centerville Date of Dissolution: n/a. Purpose of mail a copy of process to the LLP, Dover, DE 19901. Cert. of Form. on 400, Wilmington, DE 19808. Arts. of Rd., Ste. 400, Wilmington, DE 19808. LLC: to engage in any lawful act or 90 Park Avenue, New York, New York file: SSDE, Jeffrey W. Bullock, Org. filed with Secy. of State, Div. of Arts. of Org. filed with Secy. of State, activity. Street address of Principal 10016, which is also the location of Secretary of State, State of DE, 401 Corps., PO Box 898, Dover, DE DE, 401 Federal St., Ste. 4, Dover, DE Business location is: 162 E. 90th St, the partnership. Purpose: For the Federal St, #4, Dover, DE 19901 19903. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. Apt 5W, New York, NY 10128. practice of the profession of Law. Purpose: any lawful activities.

20 | Crain’s New York Business | February 21, 2011 nb08p21-22cl.qxp 2/18/11 1:32 PM Page 21

PUBLIC & LEGAL NOTICES

Notice of Qualification of RLJ III - DBT Notice of Qualification of Carlyle Notice of Qualification of H.C. Starck Notice of Qualification of WHW LLC. Notice of Qualification of Metropolitan Manhattan, LP. Authority Energy Mezzanine Opportunities Fund, North American Trading, LLC. Authority filed with NY Dept. of State PricewaterhouseCoopers Advisory filed with Secy. of State of NY (SSNY) L.P. Authority filed with NY Dept. of Authority filed with NY Dept. of State on 1/26/11. Office location: NY County. LLC. Authority filed with NY Dept. of on 12/14/10. Office location: NY State on 1/19/11. Office location: NY on 12/29/10. Office location: NY LLC formed in DE on 11/9/10. NY Sec. State on 12/6/10. Office location: NY County. LP formed in Delaware (DE) County. LP formed in DE on 8/30/10. County. Princ. bus. addr.: 45 Industrial of State designated agent of LLC upon County. Princ. bus. addr.: 300 on 12/8/10. SSNY designated as NY Sec. of State designated agent of Place, Newton, MA 02461. LLC whom process against it may be Madison Ave., NY, NY 10017. LLC agent of LP upon whom process LP upon whom process against it may formed in DE on 9/29/09. NY Sec. of served and shall mail process to the formed in DE on 9/13/10. NY Sec. of against it may be served. SSNY shall be served and shall mail process to State designated agent of LLC upon principal business addr.: 527 Madison State designated agent of LLC upon mail process to: c/o National Registered the principal business addr.: c/o The whom process against it may be Ave., 6th Fl., NY, NY 10022. DE addr. whom process against it may be Agents, Inc., 875 Avenue of the Carlyle Group, 520 Madison Ave., NY, served and shall mail process to: c/o of LLC: c/o The Corporation Trust Co., served and shall mail process to: c/o Americas, Ste. 501, NY, NY 10001, NY 10022. DE addr. of LP: c/o The CT Corporation System, 111 8th 1209 Orange St., Wilmington, DE CT Corporation System, 111 8th also the registered agent. DE address Corporation Trust Co., 1209 Orange St., Ave., NY, NY 10011, regd. agent 19801. Cert. of Form. filed with DE Ave., NY, NY 10011, regd. agent of LP: 160 Greentree Dr., St 101, Wilmington, DE 19801. Name/addr. upon whom process may be served. Sec. of State, P.O. Box 898, Dover, DE upon whom process may be served. Dover, DE 19904. Name/address of of genl. ptr. available from NY Sec. of DE addr. of LLC: 1209 Orange St., 19903. Purpose: any lawful activity. DE addr. of LLC: 1209 Orange St., genl. ptr. available from SSNY. Cert. State. Cert. of LP filed with DE Sec. Wilmington, DE 19801. Cert. of Wilmington, DE 19801. Cert. of of LP filed with DE Secy. of State, of State, 401 Federal St., Dover, DE Form. filed with DE Sec. of State, Form. filed with DE Sec. of State, LAND YOGA, LLC, a domestic 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: any lawful activity. 401 Federal St., Dover, DE 19901. 401 Federal St., Dover, DE 19901. Limited Liability Company (LLC), 19901. Purpose: any lawful activities. Purpose: any lawful activity. Purpose: any lawful activity. filed with the Sec of State of NY on Notice of formation of Sustainable 12/17/10. NY Office location: New Notice of Formation of Family Office Energy, LLC Articles of Organization Notice of Formation of COMITE LLC. York County. SSNY is designated as Notice of Formation of ANNA M. Private Advisors LLC. Arts. of Org. filed with NY Dept of State Arts. of Org. filed with Secy. of State agent upon whom process against CASTELLI MD PLLC. Arts. of Org. filed with Secy. of State of NY (SSNY) 07-26-2010. SSNY designated as of N.Y. (SSNY) on 12/9/10. Office the LLC may be served. SSNY shall filed with Secy. of State of NY on 1/21/11. Office location: NY Co. agent of LLC upon whom process location: New York County. SSNY mail a copy of any process against (SSNY) on 01/11/11. Office location: SSNY designated as agent of LLC against may be served for purpose designated as agent of LLC upon the LLC served upon him/her to The NY County. Princ. office of PLLC: 70 upon whom process against it may of any lawful activity and shall mail whom process against it may be LLC, c/o Lara Lauchheimer, 2367 Grand Ave., River Edge, NJ 07661. be served. SSNY shall mail process process to: The LLC, c/o Brenda served. SSNY shall mail process to: Douglass Blvd., Apt. 1B, NY, NY SSNY designated as agent of PLLC to: c/o CPCP I Management LLC, Fazio, Mosa Management Group, c/o David S. Lester, Esq., Cooperman 10027. General Purposes. upon whom process against it may Attn: R. Adam Smith, 1350 Ave of 1828 21st Drive, Astoria, NY 11105. Lester Miller LLP, 1129 Northern be served. SSNY shall mail process the Americas, 3rd Fl., NY, NY 10019. Blvd., Ste. 402, Manhasset, NY to Anna M. Castelli, 48 E. Central Purpose: any lawful activities. 11030. Purpose: any lawful activity. FIVE POINTS REMODELING LLC, a Blvd., Palisades Park, NJ 07650. Notice of Formation of Madison/Putnam domestic Limited Liability Company Purpose: Any lawful activity. Manager LLC. Arts. of Org. filed with (LLC), filed with the Sec of State of NY Notice of Qualification of MCR NY Dept. of State on 3/2/10. Office Notice of Formation of Jemal Children on 11/30/10. NY Office location: New INVESTORS LLC, Authority filed with location: NY County. Sec. of State LLC. Articles of Org. filed with Secy. York County. SSNY is designated as NOTICE OF FORMATION of DAVID the SSNY on 12/14/2010. Office loca- designated agent of LLC upon whom of State of NY (SSNY) on 12/07/10. agent upon whom process against KAPLOWITZ, M.D., PLLC. Arts. tion: NY County. LLC formed in DE process against it may be served and Office loc.: New York Co. SSNY des- the LLC may be served. SSNY shall of Org. filed with Sec. of State of on 05/03/2006. SSNY is designated shall mail process to the principal ignated as agent of LLC upon whom mail a copy of any process against N.Y. (SSNY) on 12/31/2010. Office as agent upon whom process against business addr.: c/o CPC Resources, process against it may be served. the LLC served upon him/her to The location: New York County. SSNY the LLC may be served. SSNY shall Inc., 28 E. 28th St., 9th Fl., NY, NY SSNY shall mail process to the LLC, LLC, 141 E. 33rd St., Apt. 3B, NY, designated as agent of PLLC upon mail a copy of process to: 152 W 57th 10016. Purpose: any lawful activity. c/o Robinson Brog, et al., Attn: David NY 10016. General Purposes. whom process against it may be St. 46th Fl , NY, NY 10019. Address Blumenthal, Esq., 875 Third Ave., 9th served. SSNY shall mail a copy of required to be maintained in DE: 160 Fl., New York, NY 10022-0123. any process to the principal business Notice of Formation of CALLIDA Greentree Dr. Ste 101, Dover DE Name: EASTERN SHINE HOLDING Purpose: any lawful act or activity. address: 527 East 84th Street, ENERGY, LLC. Arts. of Org. filed with 19904. Cert of Formation filed with LLC Art.Of Org. Filed Sec. Of State of Apartment 1A, New York, NY 10028. Secy. of State of NY (SSNY) on DE Div. of Corps, 401 Federal St., NY 08/24/2010. Off. Loc.: New York Notice of Qual. of 2 Herald Owner Purpose: any lawful activity. 09/29/10. Office location: NY County. Suite 4, Dover, DE 19901. Purpose: Co. SSNY designated as agent upon LLC, Auth. filed Sec’y of State SSNY designated as agent of LLC Any Lawful Purpose. whom process against it may be (SSNY) 12/16/10. Office loc.: NY upon whom process against it may be Notice is hereby given that a license served. SSNY to mail copy of process County. LLC org. in DE 12/14/10. served. SSNY shall mail process to (#TBA) for liquor has been applied for NOTICE OF FORMATION OF LIMITED to THE LLC, 747 Third Avenue, 22nd SSNY desig. as agent of LLC upon Corporation Service Co., 80 State St., by Hip At Murray St., LLC at retail, in LIABILITY COMPANY. NAME: RAPID Flr., New York, NY 10017. Purpose: whom process against it may be Albany, NY 12207, regd. agent upon a Restaurant, under the ABC Law, at REALTY UPPER WEST SIDE LLC. Any lawful act or activity. served. SSNY shall mail copy of proc. whom and at which process may be 102 North End Ave. NY, NY 10282 Articles of Organization were filed with to NRAI, 875 Ave of the Americas, served. Purpose: Any lawful activity. for on-premises consumption. the Secretary of State of New York Notice of Formation of LINCOLN 63 NY, NY 10001, the Reg. Agt. upon (SSNY) on 01/14/11. Office location: PARKING LLC. Arts. of Org. filed whom proc. may be served. DE off. New York County. SSNY has been with Secy. of State of N.Y. (SSNY) on addr.: 160 Greentree Dr., Ste. 101, Home Solutions Construction LLC Notice of Formation of Icer 18 Canada designated as agent of the LLC upon 12/23/10. Office location: New York Dover, DE 19904. Cert. of Form. on Articles of Org. filed NY Sec. of State LLC, Art. of Org. filed Sec’y of State whom process against it may be County. SSNY designated as agent of file: SSDE, Townsend Bldg., Dover, DE (SSNY) 10/6/10. Office in NY Co. (SSNY) 3/23/10. Office location: NY served. SSNY shall mail a copy of LLC upon whom process against it 19901. Purp.: any lawful activities. SSNY desig. agent of LLC upon County. SSNY designated as agent of process to the LLC, c/o Eric Nelson, may be served. SSNY shall mail whom process may be served. SSNY LLC upon whom process against it process to: c/o Icon Parking Systems, may be served. SSNY shall mail copy Esq., 54 Florence Street, Staten Notice of Qualification of RPO FUND shall mail copy of process to 551 W 211 East 38th Street, New York, NY of process to c/o Ruchelman Law Island, New York 10308. Purpose: For GP, LLC. Authority filed with Secy. of 181st St #218, NY, NY 10033. any lawful purpose. 10016. Purpose: any lawful activity. Purpose: Any lawful activity. Firm, 150 E. 58th St., 14th Fl., NY, NY State of NY (SSNY) on 01/07/11. 10155. Purpose: any lawful activities. Office location: NY County. LLC NOTICE OF FORMATION OF LIMITED Notice of Formation of SPINELLI formed in Delaware (DE) on 12/10/10. Notice of Qual. of Anthion Opportunity LIABILITY COMPANY. NAME: PUNCH LLC. Arts. of Org. filed with Secy. of Princ. office of LLC: 650 Madison Fund, LP, Auth. filed Sec’y of State Notice of Formation of ANASTASIA PARENT LLC. Articles of Organization State of NY (SSNY) on 12/09/10. Ave., 26th Fl., NY, NY 10022. SSNY (SSNY) 12/22/10. Office loc.: NY REAL ESTATE LLC. Arts. of Org. filed were filed with the Secretary of State Office location: NY County. SSNY designated as agent of LLC upon County. LP org. in DE 12/17/10. SSNY with Secy. of State of NY (SSNY) on of New York (SSNY) on 01/25/11. designated as agent of LLC upon whom process against it may be desig. as agent of LP upon whom 11/01/10. Office location: NY County. Office location: New York County. whom process against it may be served. SSNY shall mail process to process against it may be served. Princ. office of LLC: 15 Union Square W, SSNY has been designated as agent served. SSNY shall mail process to the LLC at the princ. office of the SSNY shall mail copy of proc. to Att: Apt. 4C, NY, NY 10003. SSNY desig- of the LLC upon whom process Corporation Service Co., 80 State LLC. DE addr. of LLC: Corporation David Moradi, 160 Mercer St., 2nd Fl., nated as agent of LLC upon whom against it may be served. SSNY shall St., Albany, NY 12207, regd. agent Service Co., 2711 Centerville Rd., NY, NY 10012. DE off. addr.: CSC, process against it may be served. mail a copy of process to the LLC, upon whom and at which process Ste. 400, Wilmington, DE 19808. 2711 Centerville Rd., Wilmington, DE SSNY shall mail process to 1015 Madison Avenue, New York, may be served. As amended by Arts. of Org. filed with Jeffrey W. 19808. Cert. of LP on file: SSDE, Corporation Service Co., 80 State St., New York 10021. Purpose: For any Cert. of Amendment filed with SSNY Bullock, Secy. of State of DE, Div. of Townsend Bldg., Dover, DE 19901. Albany, NY 12207, regd. agent upon lawful purpose. on 01/07/11, the County location is Corps., PO Box 898, Dover, DE Name/addr. of each gen. ptr. avail. at whom and at which process may be Erie. Purpose: Any lawful activity. 19903. Purpose: Any lawful activity. SSNY. Purp.: any lawful activities. served. Purpose: Any lawful activity. NOTICE OF FORMATION OF Compass Accounting Strategies, LLC. Article of Organization filed with the Secretary of State of NY (SSNY) on 11/9/2010. Office location NEW YORK County. SSNY has been designated as agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/her is C/O the LLC 457 West 57th Street, Suite 708, New York, NY 10019. Purpose of LLC: to engage in any lawful act or activity. Street address of Principal Business location is: 457 West 57th Street, Suite 708, New York, NY 10019.

February 21, 2011 | Crain’s New York Business | 21 20110221-NEWS--0022-NAT-CCI-CN_-- 2/18/2011 11:32 AM Page 1

FOR THE RECORD

of their recent transactions appear in common stock at $29.24 on Feb. 8, in a $1,750,000. On Feb. 7, he sold 50,000 these listings should e-mail descriptions transaction worth $4,977,004. On the shares of common stock at $91.35, in a ABOUT THIS SECTION following this format to same day, he sold 170,218 shares at transaction worth $4,567,735. He now FOR THE RECORD is a weekly listing of information from the public record that [email protected], with $45.08 in a transaction worth directly holds 31,790 shares. “Real estate transaction” in the subject $7,673,138. He now directly holds can help businesspeople in the New York area find opportunities, potential line, or enter them online at 83,689 shares. ● Colgate-Palmolive Co. (CL) new clients and updates on competitors. crainsnewyork.com/submitadeal. Franck J. Moison, chief operating To ask questions or get more information on this section, contact Suzanne Deals are listed in order of square footage. ● Hess Corp. (HES) officer, emerging markets, exercised Panara at [email protected]. John B. Hess, chief executive, exercised options on 55,000 shares of common COMMERCIAL options on 45,500 shares of common stock at $53.46 on Feb. 8, in a ● Deloitte signed a lease for 430,000 stock at $29.96 between Feb. 7 to Feb. 9, transaction worth $2,940,025. Between square feet at 30 Rockefeller Plaza,a in a transaction worth $1,363,180. Feb. 8 and Feb. 10, he sold 21,186 shares 70-story, 2.2 million-square-foot During the same period, he sold 91,000 at prices ranging from $77.60 to $78.83, BANKRUPTCIES ● Department of Design and Construction building owned by Tishman Speyer. shares at prices ranging from $80.30 to in a transaction worth $1,657,077. He Seeks competitive sealed bids for the John Cefaly and Dale Schlather of $83.71 in a transaction worth now directly holds 102,975 shares. The following listings are selected from the construction of storm sewers and Cushman & Wakefield represented the $7,485,014. He now directly holds most recent available filings by companies appurtenances on Metropolitan Avenue tenant, while the landlord was 11,422,800 shares. Daniel B. Marsili, vice president, global seeking bankruptcy protection in the between 80th Street and Cooper Street represented in-house. Asking rents on human resources, exercised options on Southern and Eastern Districts of New in Queens. To download bid documents, recent similar deals have been in the John J. Scelfo, senior vice president, sold 29,000 shares of common stock at prices York. Information was obtained from U.S. visit www.nyc.gov/buildnyc. To make $70s a square foot. 14,201 shares of common stock at ranging from $53.46 to $56.68 on Feb. Bankruptcy Court records available on inquiries, contact Ben Perrone at $82.12 on Feb. 8, in a transaction worth 8, in a transaction worth $1,579,175. Public Access to Court Electronic Records. (718) 391-2614. ● First Eagle Investment Management $1,166,186. He now directly holds Between Feb. 8 and Feb. 9, he sold 3,484 Listings are in alphabetical order. signed a 20-year sublease for 63,000 74,449 shares. shares at prices ranging from $78.03 to ● Department of Parks and Recreation square feet at 1345 Sixth Ave., a 50-story, $78.84, in a transaction worth $273,911. ● Azuka Foods Inc. Seeks competitive sealed bids by 10:30 2 million-square-foot building owned by Lawrence H. Ornstein, senior vice He now directly holds 51,996 shares. 10 Legends Circle, Melville, L.I. a.m. on March 10 for the partial Allianz Global Investors. The firm president, sold 13,014 shares of common Filed for Chapter 11 bankruptcy reconstruction of HVAC systems in occupies the 47th and 48th floors. The stock at $82.12 on Feb. 8, in a ● Morgan Stanley (MS) protection on Feb. 9. The filing cites connection with reconstruction of tenant negotiated in-house, while transaction worth $1,068,710. He now Thomas Colm Kelleher, executive vice estimated liabilities of $1,000,001 to recreation and nature centers at various Michael Monahan, Mark Ravesloot and directly holds 106,638 shares. president and co-president of $10 million and estimated assets of parks in the Bronx and Manhattan. Bid William Iacovelli of CB Richard Ellis institutional securities of Morgan $1,000,001 to $10 million. Among the documents can be purchased in the negotiated on behalf of the landlord. ● Estée Lauder Cos. (EL) Stanley, sold 50,000 shares of common creditors with the largest unsecured blueprint room, Olmsted Center, The asking rent wasn’t disclosed. John Demsey, group president, exercised stock at prices ranging from $30.06 to claims are Bug Buster, owed $2,468; Flushing, Queens, from 8 a.m. to 3 p.m. options on 64,167 shares of common $30.14 on Feb. 7, in a transaction worth GCS Repair, owed $1,727; and To make inquiries, contact Juan Alban at ● Five Star Electrical signed a lease for stock at prices ranging from $34.00 to $1,504,076. He now directly holds Aramark, owed $1,564. (718) 760-6771 or 18,000 square feet at 2 Rector St.,a $52.83 on Feb. 3, in a transaction worth 378,671 shares. [email protected]. 26-story, 430,000-square-foot building $2,752,719. On Feb. 7, he sold 84,167 ● Rockaway MCD owned by Stellar Management. Barrett shares at prices ranging from $90.57 to ● International Business Machines Corp. 1467 Rockaway Parkway, Brooklyn ● Department of Sanitation Stern of Grubb & Ellis represented the $91.38, in a transaction worth (IBM) Filed for Chapter 11 bankruptcy Seeks competitive sealed bids by 11 a.m. tenant, while Frank Cento of Cushman $7,623,159. He now directly holds 9,468 Michael E. Daniels, senior vice protection on Feb. 9. The filing cites on March 17 for the installation of & Wakefield represented Stellar. The shares. president, global technology services, estimated liabilities of $1,000,001 to resinous flooring at the Queens East asking rent was in the $30s a square foot. sold 6,900 shares of common stock at $10 million and estimated assets of District 7 Annex Garage. An optional Cedric Prouve, group president, prices ranging from $164.34 to $164.49 $1,000,001 to $10 million. Among the prebid conference will be held at 11 a.m. ● Strike Holdings signed a five-year international, exercised options on on Feb. 9, in a transaction worth creditors with the largest unsecured on Feb. 22 at 44 Beaver St., 12th floor lease for 6,900 square feet at 545 50,000 shares of common stock at $1,134,420. He now directly holds claims are Group II Communications, conference room. Questions must be Madison Ave., a 140,000-square-foot $35.00 on Feb. 3, in a transaction worth 83,715 shares. Ⅲ owed $1,871; Bug Buster, owed $1,440; submitted by 3 p.m. on March 4. To building owned by LCOR. The firm will and TIA New York Inc., owed $1,200. make inquiries, contact Frank Mitchell occupy the 15th floor. Norman Bobrow at (917) 237-5542 or and Daniel Fiskus of Norman Bobrow ● Seaview MCD [email protected]. represented the tenant, while Sloane DEALS ROUNDUP 10 Legends Circle, Melville, L.I. Rhulen and Glenn Rothkin of CB Filed for Chapter 11 bankruptcy ● Department of Transportation Richard Ellis represented LCOR. The protection on Feb. 9. The filing cites Seeks competitive sealed bids by 11 a.m. asking rent was in the $70s a square foot. TRANSACTION SIZE SELLER/TARGET (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE estimated liabilities of $1,000,001 to on Feb. 28 for protection against marine $10 million and estimated assets of borders at FDR and Harlem River RETAIL News America Inc. $2,486.1 Not disclosed GCI $1,000,000 to $10 million. Among the drives in Manhattan and Carroll Street ● Hudson Station signed a 15-year lease (Manhattan) creditors with the largest unsecured and Ocean Avenue bridges in Brooklyn. for 7,100 square feet at 440 Ninth Ave., J.P. Morgan Chase & Co. $1,500.0 Not disclosed GCI claims are McDonald’s Corp., owed To make inquiries, contact Andre an 18-story, 412,000-square-foot Hana Financial Group $1,279.6 Perry Capital (Manhattan), GCI $3,818; Altura, owed $1,713; and Bug Celetin at (212) 839-4629. building owned by the Paramount Morgan Stanley Investment Buster, owed $1,320. Group. Ed Reilly of Reilly Real Estate Management Ltd., National ● New York Police Department represented the tenant, while Andrew Pension Service ● 341 Amsterdam Avenue Corp. Seeks competitive sealed bids by 11 a.m. Conner and Peter Brindley negotiated Harbinger Capital Partners $693.1 Not disclosed SB M&A 341 Amsterdam Ave., Manhattan on March 8 for the restoration of the on behalf of the landlord in-house. The (Manhattan)/ Filed for Chapter 11 bankruptcy exterior facade and roof at the Police asking rent wasn’t disclosed. Inmarsat Plc (14%) protection on Feb. 4. The filing cites Athletic League. A mandatory prebid Kohlberg Kravis Roberts & Co. $590.0 KSL Resorts, Blackstone Real FB M&A estimated liabilities of $100,001 to conference will be held at 10 a.m. on ● William Nail Spa signed a 15-year (Manhattan), KSL Resorts, Estate Advisors (Manhattan), $500,000 and estimated assets of $0 to Feb. 22 at the Police Athletic League, lease for 2,000 square feet at 90 William Strategic Hotels & Resorts Inc./ Strategic Hotels & Resorts Inc. $50,000. Among the creditors with the 34½ E. 12th St. To make inquiries, St., a building owned by 90 William Hotel del Coronado largest unsecured claims are G.A.F. contact Stephanie Gallop at Holding. Shmuel Elhadad and Adrian Nautical Offshore Services/ $423.1 Octavian Advisors (Manhattan), SB M&A Seelig Inc., owed $9,700; Burke Supply (646) 610-5225 or Berger of Global Realty Opportunities Jaya Holdings Ltd. (54.7%) Linden Capital Ltd., Cathay Co., owed $5,427; and Consolidated [email protected]. represented the tenant, while Deborah Asset Management Co., Orchard Centar Master, Orchard Edison, owed $4,811. Hildreth of Global Realty Opportunities Avalon Ltd. GOODS AND SERVICES negotiated on behalf of the landlord.The ● Health and Hospitals Corp. asking rent was $75 a square foot. Oak Investment Partners, $315.0 AOL Inc. SB M&A SoftBank Capital, Greycroft GOVERNMENT CONTRACT Seeks competitive sealed bids by 3 p.m. ● Partners (Manhattan)/ OPPORTUNITIES on Feb. 28 for the furnishing and Art Frame Gallery signed a 10-year HuffingtonPost.com installation of an undercounter lease for 600 square feet at 112 W. 44th St. Insight Venture Partners $276.9 GSI Commerce Inc. SB M&A Following are selected contract dishwasher for DSSM-Neponsit Adult , a 1 million-square-foot building (Manhattan)/ opportunities recently announced by New Day Health Center, at 230 Beach 102nd owned by The Durst Organization. John Football Fanatics Inc. York City agencies.To learn how to sell St., Queens. To make inquiries, contact Grotto of The Durst Organization Menlo Ventures, SVB Capital, $190.0 CyberSource Corp. SB M&A goods and services to city government, visit Francis Okhiria at (718) 245-7320. represented the tenant and the landlord. Easton Capital Investment www.nyc.gov/selltonyc. For a searchable The asking rent was $150 a square foot. Group (Manhattan), Time Warner database of current procurement notices, ● Housing Authority Investments (Manhattan), Vodafone visit www.nyc.gov/cityrecord. Listings are Requests proposals by 4 p.m. on Ventures, STIC Investments Inc., alphabetical by category and department. March 18 from vendors wishing to STOCK TRANSACTIONS GE Asset Management Inc., STIC provide and install stage curtains for two International, Softbank China & India Holdings, Novel TMT Ventures CONSTRUCTION SERVICES Housing Authority community centers. Following are recent insider transactions at ● Ltd., Ecosystem Ventures/ Department of Design and Construction To download bid documents, visit New York’s largest publicly held companies PlaySpan Inc. Seeks competitive sealed bids by www.nyc.gov/nychabusiness. To make filed with the Securities and Exchange 11 a.m. on March 8 for the installation inquiries, write Janet Wilson at Commission by executives and major KGS-Alpha Capital Markets $75.0 Hospitals of Ontario Pension GCI (Manhattan) Plan, Arsenal Capital Partners Inc. of high-priority pedestrian safety 90 Church St., New York City, 10007, or shareholders. Listings are in order of (Manhattan) sidewalks, adjacent curbs and e-mail [email protected] by transaction value.The information was pedestrian ramps as necessary in 4 p.m. on March 3. obtained from Thomson Reuters. Selected deals announced for the week ended Feb. 13 involving companies in metro New York. various locations citywide. To GCI: Growth capital investment represents new money invested in a company for a minority ● American Express Co. (AXP) stake. FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing download bid documents, visit shares of a company with the participation of a financial buyer. SB M&A: Strategic buyer www.nyc.gov/buildnyc. To make REAL ESTATE DEALS Thomas A. Schick, executive vice M&A represents a minority or majority acquisition of existing shares of a company without the inquiries, contact Ben Perrone at president, corporate and external affairs, participation of a financial buyer. source: capitaliq (718) 391-2614. Companies that would like to have details exercised options on 170,218 shares of

22 | Crain’s New York Business | February 21, 2011 20110221-NEWS--0023-NAT-CCI-CN_-- 2/18/2011 9:06 PM Page 1

BONES OF CONTENTION It’s a boom for private schools All too many big tenants have queued up for space at these three buildings recently.

Continued from Page 1 number of tests given this year will be what its founders hope will be a glob- Schmidt,will open its doors in a mas- up from the previous year. Last year, al network of schools where students sive building in Chelsea. 4,245 children took the test, down will have the opportunity to spend se- Meanwhile, The Blue School— from a record 4,538 for the 2007- mesters in cities like Shanghai or São an innovative nursery and elementary 2008 school year, but far more than Paulo. Spanish and Mandarin will be school started by the three founders the 3,899 who took the test in 2005. taught, starting in nursery school. of theater troupe Blue Man Group— Education experts attribute the just purchased a six-story building in demand to the fact that families are International experience lower Manhattan. It is expanding having more children and want to THE WORLD CLASS Learning Academy, from second grade up to fifth and raise them in the city. Indeed, the which is backed by Sovereign Capi- considering building a middle school. number of kids enrolled in kinder- tal, is touting its international pri- It joins other recent newcomers like garten grew by more than 10% be- mary curriculum, a program used in the British International School, tween 2005 and 2009, according to more than 1,000 schools around the which opened in 2006, and French U.S. Census data. At The Mandell world and at the school’s five sister in- school École Internationale de New School, for example, there are 50 stitutions in the United States,which York, which opened in 2009. kindergarten slots,but most of them are called British-American schools. “People in all levels of education are reserved for students in the nurs- The curriculum was developed 25 are realizing that there aren’t enough ery school or siblings of current stu- years ago and incorporates elements alternatives for parents in New dents, leaving just a handful of spots from the national curriculum for 120 Park Ave. 825Eighth Ave. 30 Rockefeller Plaza York,” said Gabriella Rowe, head of for around 500 applicants. Most England. Teachers at the school all OWNER (aka Worldwide Plaza) OWNER Tishman Speyer the Upper West Side’s Mandell private schools in the city are in a have international experience. Global Holdings Inc. OWNERS George Comfort SIZE: 2.1 million sq. ft. School, which itself recently ex- similar situation, Ms. Rowe said. “We are offering something quite SIZE 600,000 sq. ft. & Sons and RCG Longview STORIES panded from a well-established Despite the demand, the new different,” said John Taylor, head- 70 nursery school to include elemen- schools may still find it a challenge master of the school.“This is a school STORIES 26 SIZE 1.7 million sq. ft. YEAR BUILT 1932 tary and middle-school grades. “No to gain traction in a city dominated for internationally minded people.” YEAR BUILT 1982 STORIES 47 matter what we throw at them— by prestigious,longtime institutions Still, Mr. Taylor admits New YEAR BUILT 1989 Source: CoStrar Group Inc. 9/11,the recession,the financial cri- like Dalton and Spence. York is a tough market to break into. sis—people still want to raise their “New Yorkers want a proven en- He has spots available in every grade children here. There is tremendous tity, the same group of clubby old for the fall, and as of last week was demand for private school spots.” schools,” said Emily Glickman, waiting anxiously for a flock of par- Big tenants clash head of Abacus Guide Education ents whose kids weren’t admitted Back to prerecession levels Consulting, a firm that helps par- anywhere else to come calling. THOUGH THE FINANCIAL CRISIS made ents with the application process. “I “There’s a lot of skepticism about Continued from Page 1 either client, he said that the cur- getting into the city’s top schools a routinely have parents of three- new schools here, but we have 10 and for tenants looking for 250,000 rent environment is pushing bro- little easier, competition this year is year-olds talk to me about their years of experience with our other square feet or more.Currently,there kers representing large clients to back to prerecession levels, private dreams of their child going to Har- schools that gives us claims to a lega- are 24 such mega-tenants in the act more quickly than they would school administrators said. Official vard. People don’t like risk if they cy,” Mr.Taylor said. “We took a 25- market for space, up 50% from last have during the recession. Sources numbers won’t be available until can avoid it for their five-year-old.” year lease on our property in the year. Meanwhile, there are only 29 said that once Bloomberg decided March, but Antoinette DeLuca, ex- In order to stand out, the new East Village, so we’re here for the blocks available—12 of them in it wanted the space, a lease was ecutive director at the Educational schools are playing to the globaliza- long term.” Ⅲ midtown—according to Cushman signed in five days. That is quite a Records Bureau, the group that ad- tion trend. Avenues, which has $75 & Wakefield Inc. feat, considering that it typically ministers the admissions test re- million in initial funding from two LISTEN to a discussion at “It doesn’t take a long time for takes three to four days just to draw quired for private schools, said the private equity funds, is the first in CrainsNewYork.com/audio the big-block market to tighten up,” up a lease. said Patrick Murphy, a vice chair- man at CB Richard Ellis Inc. “The Picking up needed speed good blocks of space have started to KEEPING UP with the crowd isn’t al- Financier seeks riches in pastry dry up.” ways easy.Wells Fargo’s Mr. Saclar- That’s potentially great news for ides said his bank needs more time landlords at buildings like 11 Times because its board needs to sign off Continued from Page 3 cording to Mr. Lamas. He declined cluding Ulysses, a pub, and Adri- Square, 3 Columbus Circle and 685 on all major real estate deals. years later, and Deutsche Börse to disclose total sales but said that in- anne’s Pizzabar—named after his Third Ave., which all have acres of Nonetheless,he said,the next trans- Group bought it for $2.8 billion in dividual stores open for more than a mother—has separate investors and empty space.Now,instead of having action should move faster because 2007. year had average sales of $1,900 a operating partners. to offer discounts to lure tenants, the bank isn’t starting from scratch. Two other Wall Street fixtures square foot in 2010. The locations they may be able to charge a premi- It gleaned valuable market insight as were ahead of Mr. Krell as investors range from 500 to 1,200 square feet. Homage to father um. Sources said that Bloomberg, it zeroed in on 120 Park Ave.,which in Financier: Victor Wright, a re- The partners bought the coffee WHEN ADRIANNE POULAKAKOS died in for example, topped Wells Fargo’s will help push future negotiations tired Goldman Sachs partner who company in 2008. They moved it 2003, her husband closed the origi- rent by $6 a foot in order to secure along faster. helped get the startup going, and from Long Island to a 16,000- nal Harry’s. The son revived it in its spot at 120 Park. He also stressed that this time Paul Lamas, a senior vice president square-foot facility in Park Slope, 2006 as Harry’s Café & Steak, its Brokers also say that the market’s the bank will carry on negotiations of real estate financing at Roosevelt Brooklyn, and renamed it Stone current name. rising temperature will help Larry with multiple landlords simultane- & Cross who signed on in 2007 and Street Coffee Co. The goal was to “Peter is able to give more re- Silverstein fill his towers at Ground ously so it doesn’t get caught flat- leads the team’s real estate activities. get better cost control on coffee, sponsibilities to other people, more Zero and will likely nudge Boston footed. All three men were patrons of Pe- which accounts for as much as 50% than I could when I ran my restau- Properties to restart construction of “We’ll be upfront with people ter’s father, who for decades ran two of sales in some stores, Mr. rants,” said the father, who remains its West 55th Street building,which about that,” said Mr. Saclarides. Harry’s in lower Manhat- Poulakakos said. Stone involved as an adviser. was mothballed in 2009. “But we can’t afford another situa- tan (only the Hanover BEAN COUNT Street has wholesale cus- Two years ago,as an homage to his tion like we had at 120 Park. Square location remains tomers, as well. father, Mr. Poulakakos opened Har- Hold your horses To beat the competition, others open). Mr. Krell said he is In addition to prepar- ry’s Italian at 2 Gold St.(the site of his BUT SOME EXPERTS are advising land- are trying to create a deal on space supporting Financier out 1.2 ing products for the stores, only failure—a 24-hour diner called lords not to get carried away,noting that isn’t on the market.That’s what of loyalty to the Poulakakos NUMBER of the kitchen, in Sunset Gold Street). It has been so success- that the robust hiring that propels CBRE’s Mr. Murphy did for So- family and because he be- cups of tea or Park, Brooklyn, will allow ful that two more Harry’s Italian are companies to add large amounts of ciété Générale in last year’s largest lieves it has huge potential. coffee sold, in Financier to expand its scheduled to open in the next few space still isn’t happening. deal, a 444,000-square-foot lease at “There is nothing even millions catering operations and months,in Rockefeller Center and in “I don’t think it’s proven that this 245 Park Ave.The space was leased close to Financier in the online sales. the new Goldman Sachs building, scenario [the shortage of big blocks to J.P.Morgan Chase,which was in- city,” he said. Mr. Poulakakos, 34, 200 West St. The Financier partners of space] is sustainable,” said Barry tending to keep it and instead mar- Financier is unique in a number owns and runs six other restaurants have also invested in Harry’s Italian. Gosin, chief executive of Newmark ket space at 277 Park Ave.Mr.Mur- of ways. For example, customers and oversees a combined 500 “We turned a terrible situation Knight Frank. “Owners have to be phy said he reached out to J.P. who buy a cup of coffee or tea get a staffers. He opened his first eatery, [at 2 Gold St.] into something careful that they continue to negoti- Morgan executives and explained complimentary, bite-size almond Bayard’s, a French-American great,” said Mr. Poulakakos. “It’s ate in good faith.” his client really wanted the 245 Park cake in the shape of a gold bar. The restaurant above the original Har- rare you can go to your investors and Mr. Gosin has more reason than Ave. space. company gave away 1.2 million ry’s, shortly after graduating from say, ‘We really screwed up; I need most to hope they will. He is repre- “It took a lot of time and a lot of cakes last year, said co-founder Eric Georgetown University in 1998.He another $1 million to fix it.’ And senting Morgan Stanley, which is work, but we got the deal done,” he Bedoucha, a pastry chef who once went on to build a fiefdom of restau- they give it to you.” Ⅲ seeking several hundred thousand said. Ⅲ worked at Lutèce. Some shops also rants and bars on Stone Street and square feet of space, as well as offer lunch items. helped to create its thriving scene LISTEN to a discussion at Chadbourne & Parke. While he LISTEN to a discussion at Revenues have risen each year,ac- there. Each of those businesses, in- CrainsNewYork.com/audio declined to comment directly on CrainsNewYork.com/audio

February 21, 2011 | Crain’s New York Business | 23 20110221-NEWS--0024-NAT-CCI-CN_-- 2/18/2011 9:07 PM Page 1

What’s in store for fashion biz

Continued from Page 2 profits. Expensive clothes translate [the styles] will do really well in a lot skirts, tonal dressing and ladylike to heftier price tags and more cha- of different categories,” predicted sophistication,” she said. chings for stores.Things are already Kerry Pieri, features director at Ms. Karan and Mr. Tahari—de- looking up at Bloomingdale’s. Par- trend forecasting firm StyleCaster. signers that traditionally cater to a ent company Macy’s Inc. reported mature clientele—had many such earlier this month that 2010 sales Show-stopping red looks in their collections, but so did rose 6.5% from the previous year, to ONE CLEAR SIGN of optimism was the younger designers. Alice & Olivia, $25 billion. presence of bright color. Though Ms. Bendet’s line, presented outfits Mr. Kors’ collection further ce- many designers opted for black and imbued with a flapper vibe,and Tra- mented the movement toward pol- gray or autumnal tones, including cy Reese included fur stoles with ished fashion.Many of his long,lean mustard-yellow and burnt orange, many of her gowns. Lace was preva- looks featured hemlines that grazed shades usually reserved for spring lent at Monique Lhuillier’s show. the knee or even touched the floor. also emerged. Rebecca Taylor in- The designer is rolling out a massive cluded an electric-blue ruffled skirt Young to play dress-up store expansion, including the re- with a sequined top, and Milly, “THE YOUNGER, contemporary de- cent leasing of Kenneth Cole’s for- Michelle Smith’s label, accessorized signers are starting to show dressed- mer Rockefeller Center digs, for his models with brightly hued leather edward reed/nyc.gov reed/nyc.gov edward up clothes based on luxurious fab- 30-year-old brand. gloves. PYRRHIC VICTORY? The mayor’s prudent budget decreases his leverage with legislators. rics, and when this happens, it’s an At Vera Wang’s show, accordion But show-stopping red made it indication that young customers are pleats on skirts provided newness into the lineups of almost every de- going to start dressing up,” said but also reinforced the minimalist signer, including Mr. Kors and Stephanie Solomon, fashion direc- principle. Retail experts think such DKNY. Improved finances tor at department store Blooming- expressions will have wide appeal. “Red is a very positive color,”said dale’s.“That’s big news for retailers.” “Because the age range that can Ms. Rodbell of Lord & Taylor. “It It’s also news that could lead to wear these kinds of looks is so broad, makes people feel good.” Ⅲ Continued from Page 1 the city’s lucrative medical industry, pump more dollars into the local she noted. economy.Throw in $5 billion in sav- Another budgetary obstacle is Ellis Inc. He noted that Dick’s ings from nine rounds of agency the city’s dependence on Albany. Big-box retail spaces Sporting Goods and Office Depot cuts, plus the mayor and the City The mayor wants $400 million in are also in the hunt for larger spaces. Council’s disciplined decision to cash, which Gov. Andrew Cuomo The Park Avenue Borders site, sock away boom-time surpluses, has already said he won’t give up. Continued from Page 2 The downtown Borders loca- situated on East 57th Street, is one and the mayor is looking at a budg- Mr.Bloomberg has also asked legis- once examined the site, which for- tion, near luxury retailers Tiffany’s that could be less attractive to large et that, unlike the governor’s, can be lators to nix $12,000 holiday bonus- merly housed Office Depot, a and Hermès and a new T.J. Maxx, retailers, and a problem for landlord balanced through relatively modest es for retired firefighters and police. source said, but so far no deal has could lure another off-price apparel Cohen Brothers Realty Corp. De- reductions in spending. That would total another $200 mil- been signed. seller. spite its prime location, the four- But those facts could rob the lion in savings for the upcoming fis- Other food purveyors, such as story, low-ceilinged space has been mayor of the momentum he needs cal year and $1 billion in savings go- Fairway and German chain Aldi,are Hot spot for fashion discounter on and off the sublease market for to pressure legislators to address the ing forward. also in expansion mode. The Path- “IT WOULDN’T SURPRISE ME if Nord- years, brokers said, and renovations city’s long-range fiscal problems. mark space in Brooklyn, already strom Rack or that new off-price could be costly.“It’s just a tricky big- Mr. Bloomberg needs a change in Putting off short-term pain equipped for such a user, might be concept from Bloomingdale’s took a box space,” said Mr. Roseman. “It’s state law to rein in burdensome THE BELIEF that the city will benefit attractive because little construction look,” said Richard Hodos, execu- best off as more than one store— legacy costs at a time when revenues from higher-than-expected tax rev- would be necessary. tive vice president at CB Richard probably two or three.” Ⅲ from finance and health care—the enue has already prompted calls by city’s two most important econom- unions and social services advocates ic sectors—approach challenging to put off short-term pain. Rising headwinds. But without the threat pension costs may cut into the city’s Ground laid for next Time chief of an immediate fiscal crisis, budget, but the better-than- Albany may not acquiesce to expected revenue should go the Bloomberg administra- $7B toward restoring 6,166 Continued from Page 3 tion’s demand for a greater PE NSION teacher positions and 17,000 COSTS, which examples of Mr. Griffin’s sometimes SWIFT ACTION: say over retiree benefits. have shot up day care slots, and canceling astonishing lack of interpersonal Time Warner CEO “Even if the city’s near- five-fold in the the planned closure of 20 fire- skills. But some observers wondered Jeff Bewkes wasted term budget pressure is less past decade houses, said City Council- if the hard-charging executive ran no time in dumping than it had been, that doesn’t man Brad Lander. his magazine chief. into roadblocks at a place set in its mean we don’t face long-term fiscal “Pension reform is an important ways. challenges,” said Ronnie Lowen- issue,but it’s not a budget issue,”said “He was charged with making stein, director of the Independent Mr.Lander,co-chair of the council’s change, and that means you’re going Budget Office. “But it’s always hard Progressive Caucus. to make people unhappy,” said a for- to feel a sense of urgency for a prob- He said the mayor should have mer magazine executive who knows lem that is long-term. It’s hard to pushed Mr. Cuomo to restore a per- Mr.Griffin.“Maybe he didn’t have as spend political capital to make the sonal income tax surcharge on indi- good a bedside manner as he needed changes.” viduals earning more than $200,000. to have, but it seemed like things “The mayor hasn’t said a word were moving in the right direction.” Skyrocketing pension costs about genuinely shared sacrifice,” Media buyers, none of whom AS THE MAYOR has repeatedly re- Mr. Lander said. wanted to speak on the record, said minded New Yorkers, skyrocketing And if proposed teacher layoffs

that they thought Mr. Griffin had bloomberg news pension costs have risen fivefold in come off the table, city unions made Time Inc.easier to do business the past decade, to $7 billion, and whose contracts have expired will with. Hewlett-Packard and Google, and exit was clearly not about manage- they consume an ever-increasing clamor for raises. The budget as- “The reorganization by audience hiring people like Randall Rothen- ment style and results.I leave a first- share of the budget. Mr. Bloomberg sumes that when the administration makes a lot of sense,” said Ken Doc- berg to help boost their capability,” rate team and wish them all the best wants Albany to grant him the pow- eventually signs contracts, it will ex- tor, a media analyst with Outsell said Scott Singer,head of media and of success.” er to negotiate directly with unions tract productivity gains to offset Inc., referring to the creation of two entertainment at The Bank Street Currently in charge is an interim over postemployment benefits, in- wage increases. But if that doesn’t separate groups for sports,and busi- Group,a boutique investment bank. triumvirate of Editor-in-Chief cluding the $70 billion in unfunded happen, each 1% increase would ness and news. “The opportunity in digital is im- John Huey, General Counsel Mau- retiree health care costs. cost the city $290 million,according Other observers viewed Mr. mense.” rice Edelson and Chief Financial Meanwhile, the mayor’s budget to the Independent Budget Office. Bewkes’ action as a sign of Time Officer Howard Averill. has some holes in it. Bloomberg of- The mayor, quite frankly, doesn’t Warner’s recognition of the value of Leaving first-rate team behind One thing seems likely:The next ficials believe that a resurgent finan- care what his critics say. He is mov- the magazine division, after years in TIME INC. had revenues of $3.7 bil- leader of Time Inc. won’t be an out- cial sector will add $900 million in ing ahead with his plans. which analysts speculated that the lion in 2010, a 2% rise from 2009. sider. extra tax revenue to coffers through “I don’t owe anyone anything,” struggling unit would be spun off or Operating income doubled, to $505 “Time Inc. has a distinct cul- the end of June, and possibly an ex- he said last week.“I have nothing to sold. The iPad and other digital million, driven by cost cuts and im- ture,” said Reed Phillips, managing tra $1.1 billion for the fiscal year be- lose. These are problems that no- tablets have opened the door to new proved ad sales. partner of the media banking firm ginning in July.But the impact of fi- body solves because there’s no short- possibilities for revenue growth. Attempts to reach Mr. Griffin DeSilva+Phillips. “It is crucial that nancial regulation could lower term benefit to solving them. I just “Time Inc. has been out there on through Time Warner were unsuc- the next CEO have compatibility profits, Ms. Lowenstein said. In ad- want to leave this city better than the cutting edge, signing deals with cessful. In a statement, he said: “My with that culture.” Ⅲ dition,health care reform could hurt when I found it.” Ⅲ

24 | Crain’s New York Business | February 21, 2011 20110221-NEWS--0025-NAT-CCI-CN_-- 2/18/2011 11:33 AM Page 1

Projected16% share of city tax revenue that will be devoted to debt service in 2014 BUSINESS LIVES Source: City Council Speaker Christine Quinn HOT JOBS GOTHAM GIGS EXECUTIVE INBOX

HEAD OF STRUCTURED Urban Outdoorsman Anne Fisher LIFE PRODUCT DEVELOPMENT Nonprofits go COMPANY Zurich in North America JOB DESCRIPTION Lead the online, with design, development and delivery a little help of the mortality-based funding annual sales plan NOT SO LONG AGO, if you bought MOST IMPORTANT TASK Ensure a ticket to a performance at that sales of life insurance and Merkin Concert Hall on West group life insurance policies are 67th Street, your reservation was developed for Fortune 500 and noted by hand in “a huge book— multinational companies moving it around was like lifting a CREDENTIALS NEEDED Ph.D. or coffin—with a lot of pencil entries foreign equivalent; five years as and erasures,” recalled Lydia quantitative analyst or actuary Kontos, executive director of the SALARY $136,989 Kaufman Center, which RECRUITER Internal comprises Merkin Hall and two music schools. DOWNSIDE Managing budget and controlling expenses That tome has been replaced by sophisticated software that UPSIDE Working closely with keeps track of scheduling, tick- insurance regulators and captive eting and other box-office es- insurance companies sentials. Many of the Kaufman Zurich is the third-largest under- Center’s other operations have writer of commercial general liabili- gone electronic, too. ty insurance and the fourth-largest Embracing new technology commercial property-casualty insur- ance company in North America. poses special problems for nonprofits. Limited budgets —SUZANNE PANARA make it hard to find the cash for investing in new systems, but those same financial constraints EXECUTIVE MOVES put pressure on them to effici- ently use the funds they have. ThinkEco Inc.: Edward That has created a niche for G. Rendell, 67, joined as an advisory board companies like JCA, which member of the energy designs and manages computer technology company. AT HOME IN THE systems for the Kaufman Center. He is currently a ELEMENTS: Chris When he started the firm 23 partner of the Ballad Hawson happily tests years ago, Chief Executive Ste- many of the products Spahr law firm, a ven Jacobson said, “nonprofits’ news analyst with NBC and MSNBC, he chooses to stock and a teacher at the University of at Paragon Sports. ‘databases’ usually consisted of Pennsylvania. He recently ended his a stack of 3-by-5 index cards.” term as governor of Pennsylvania. He added: “Our focus is on DoubleVerify: Yoav Millet, 47, was named larry ford making nonprofits more chief financial officer of the online efficient so they can achieve media verification company. He was EVERY MORNING, CHRIS HAWSON runs five miles from his Upper their goals. In the for-profit previously chief operating officer and ‘I still get West Side apartment to his downtown job, no matter how frigid the chief financial officer for On-Net world, often you have the Surveillance Systems. upset that temperatures.The harsh elements simply don’t faze the 56-year-old budget to do a project over Mark Pearlstein, 41, joined as vice Englishman, a senior outerwear buyer for high-end sporting goods again if it runs into problems.” president, business development. He I have to With a staff of 14 techies in was previously senior vice president, store Paragon Sports. In fact, Mr. Hawson—who ran a cross-country the city, JCA occupies the business development and sales, at ski school and a bicycle-touring company in Scotland before moving middle ground between huge Ringleader Digital. go out of MindsInSync Inc.: to New York 21 years ago—happily tests many of the products he competitors like Bain and David Pan,41,was my way to chooses to stock. ¶ The severe winter has been a massive boon for Accenture, and IT consultants promoted to chief business. Mr. Hawson couldn’t keep his best-selling items—blizzard- who fly solo. JCA’s sales rose executive, Asia Pacific, walk on 15% in 2010 and are on track to of the consumer goods fighting insulated jackets from Canada Goose that start at $500—on gain another 15% this year. company. He was grass’ the shelves. Rabbit fur-lined aviator hats sold out immediately, too. ¶ “Donations are coming back, formerly vice Mr. Hawson learns about the latest outerwear trends from the and nonprofits are going ahead president, China with projects they had delayed,” operations and development. Internet and magazines on extreme sports, and also from his own Mr. Jacobson said. “We’re busy.” Recyclebank: Ian Yolles,52,was passion for the outdoors. ¶ He met his wife, a New Yorker, when she promoted to chief sustainability officer That’s welcome news, not just at the sustainable action platform. He signed up for one of his bicycle tours of Scotland; she eventually for nonprofits but for New York’s was previously chief marketing officer. convinced him to move back home with her. ¶ Despite all his years in cultural life as well. Hospital Audiences Inc.: Jane Kleinsinger, 63, has assumed the position of interim Manhattan, Mr. Hawson still has trouble adjusting. “I still get upset DOES YOUR COMPANY have in-house executive director at the arts outreach that I have to go out of my way to walk on grass,” he said. IT staff, or do you outsource? Tell us at See EXECUTIVE MOVES on Page 26 —miriam kreinin souccar www.crainsnewyork.com/execinbox.

February 21, 2011 | Crain’s New York Business | 25 20110221-NEWS--0026-NAT-CCI-CN_-- 2/18/2011 11:34 AM Page 1

RÉSUMÉ REVIEW Going back to Broadway Is your job search all it could be? We ask the experts. Actor discusses live thing that happens.Theater is a soul knows about the struggle and the NAME BRIAN ELLSWORTH exchange. I give a little piece of my journey.He’s a truth seeker like I am, SUMMARY audiences, Latin music soul; the audience gives a little of its and he has an objective eye. soul. It’s free therapy. I should be Senior association executive with expertise and other influences paying them. What made you choose the songs for in health policy Ghetto Klown: Music From My Hood? PROFESSIONAL EXPERIENCE BY ALIX STRAUSS What makes this show different from the There was this cool cross-pollination previous ones? in New York during the ’60s to mid-  Connecticut Association for Home Care & Hospice, 2002-2010 OLLOWING THE SUCCESS of Freak was me from 8 to 16,Sexaholix ’70s.The best Latin music and Latin President/chief executive Mambo Mouth, Spic-O- was about my sexual failures, Ghetto writing came out during that time. Advocated on Medicare and Medicaid reimbursement and policy issues Rama, Freak and Sexaholix is about my unmasking. It’s It’s what I grew up with, so putting it to legislators. Managed $900,000 annual operating budget. Achieved … a Love Story, John about the career battles, in one CD was amazing for me. 50% growth in membership. FLeguizamo, the Emmy- and Obie- the struggles to achieve  American Hospital Association, 1999-2002 winning actor, writer and comedian, self-expression, and What has fatherhood taught you? Senior associate director, policy development group returns to Broadway with his latest my journey as an artist. Patience more than anything Developed and analyzed regulatory and legislative proposals. Authored solo play, Ghetto Klown, directed by It’s painfully honest else. And how to laugh again. comment letters. fellow actor and friend Fisher and raw. They crack me up. My daughter  New York State Department of Health, 1995-1999 Stevens. Mr. is 11, and my son is 10. He does Director, long-term care policy Leguizamo, Why did Fisher Stevens voices and has taught me a few Handled senior policy development for major department initiatives. an uninhibit- direct? physical bits I’ve added to the Developed and negotiated a bill that promoted long-term care insurance. ed father of We met doing A Mid- show. MOVERS & two, has also summer Night’s EDUCATION SHAKERS curated a CD Dream.I was play- What’s next?  Cornell University, M.A., economics titled Ghetto ing Puck and I I’ve three movies  Union College, B.A., economics John Klown: Music put itching pow- coming out this year: Résumé appears in condensed form. From My der in his under- The Lincoln Lawyer, EXPERT ADVICE Leguizamo Hood, featur- pants and he with Matthew Mc- ing classic itched for the Conaughey and Brian presents a high-quality résumé that is well-structured, concise, and Latin music. whole show. He Marisa Tomei; Van- easy to follow and digest. Some of the specific job entries could be Previews for the show begin on Feb. then put shav- ishing on 7th Street, cleaned up, and his management skills and P&L experience could be 21 at the Lyceum Theatre. ing cream all with Hayden Chris- better presented. He should add the years of his undergraduate and over my tensen;and One for the graduate school graduations to demonstrate the consistent nature of his How long did this show take to write? dressing Money, with Kather- employment history. Time equals quality. It took five or room so I ine Heigl. Then a —marc gouran, president, Solomon-Page Healthcare Group six years to write and get it into the couldn’t crazy-ass vacation place it’s at now. use it. somewhere far away— To contact this candidate or to be featured in “Résumé Review,” e-mail us We’ve been maybe I’ll take the family at [email protected]. Why the return to the stage? friends to the Amazon jungle be- I miss my writing and the sharing since. He fore they destroy it. Ⅲ newscom

EXECUTIVE MOVES Conrad K. Chiu, 37, joined as a partner. joined as vice president and group Stroock & Stroock & Lavan. named a member of the law firm. He He was previously a partner at Day media director at the advertising Alvarez & Marsal: Paul Aversano, 39, was was most recently special counsel at Pitney. and marketing company. He was promoted to global practice leader of the Kasowitz Benson Torres & Friedman. Continued from Page 25 Michael H. Levison, 37, joined as a most recently group planning transaction advisory group at the Moses & Singer: Alan Blum, 54, joined nonprofit. She was the organization’s partner. He was most recently an director at Kirshenbaum Bond & professional services firm. He continues the law firm as a partner. He was director of operations. associate at Day Pitney. Partners. as managing director in the private previously a partner at Quinn Emanuel Ogilvy Public Relations: Peter Hirsch,54, EisnerLubin: Matthew A. Lender, 31, was Jaklitsch/Gardner equity services practice. Urquhart & Sullivan. was appointed executive vice president appointed tax supervisor at the Architects: Mark Marcum: Mark Fogel, Aesop: Giovanni Lepori, 38, was named and director of reputation risk. He was accounting and consulting firm. Gardner, 42, was 50, has been appointed general manager, Americas, and previously a principal at Peter Hirsch Previously, he was a senior tax promoted to name chief human resources president for the skin care products Strategies. accountant at Simione Macca & Larrow. partner at the firm. officer of the company. He was formerly vice Pryor Cashman: Ronald Time Inc.: Michael Safran, 42, was He was previously accounting and president, private equity, at The S. Beacher, 47, joined promoted to associate publisher of Time a senior associate advisory services firm. Dellacorte Group. as a partner and will magazine. He was previously national at Stephan Previously, he was vice The Jewish Communal co-chair the sales director at Sports Illustrated. Jaklitsch Architects. president of human Fund: Laurence W. bankruptcy, Helen Keller Services for the Blind: Frank Quinn Emanuel Urquhart & Sullivan: resources and Cohen, 54, was elected reorganization and E. Primeggia, 62, was promoted to Maria Ginzburg, 40, joined the administration at Leviton president of the board creditors’ rights group managing director, rehabilitation business litigation firm as a partner. Manufacturing Co. of trustees. He at the law firm. He services. He was formerly rehabilitation She was previously a partner at Kirkland Mission: Adam Geisler, 34, was appointed continues as the was most recently a coordinator. & Ellis. executive vice president, sales and managing partner of partner at Day Pitney. Dentsu America: Vladimir Leveque,37, G.S. Schwartz & Co.: business development, for the Athlete- Ehrenkranz & Rachel Honig, 39, was Engineered product line. He was Ehrenkranz. promoted to chief formerly president of Everlast Turner Construction Co.: Karen Gould,46, CORPORATE LADDER operating officer of Worldwide. joined as senior vice president and chief the digital marketing Wendy Kula, 36, joined as vice president, financial officer. She was most recently consultancy. She was marketing. She was most recently senior an independent management SECURITIES PRO TO INDUSTRY GROUP formerly managing vice president of marketing and brand consultant. JAMES TOES, 47, has been named president and chief executive of the director and strategy at Relevent Partners. Wilson Elser Moskowitz Edelman & HedgeMark Dicker: Security Traders Association, an advocacy and educational organization for operations/admin- Jura C. Zibas, 48, joined the law istrative partner of G.S. Schwartz. International: George firm as a partner. She was previously a financial industry professionals. He will assume the post on March 1. She continues as chief operating officer “Tres” Arnett III, 50, partner at Lewis Brisbois Bisgaard & Mr. Toes has more than 25 years of experience in the securities industry. of Digital Power and Light, G.S. has been hired as Smith. He spent the past 17 years at Bank of America Merrill Lynch, most recently as Schwartz’s sister consultancy, which she executive vice Nest Seekers International: Sergei a senior relationship manager at Broadcort, a division of the company co-founded. president and general Millian, 32, was named vice president that provides execution, clearing and financing services to The National Center on Addiction and counsel for the hedge and associate broker for the real estate broker-dealers for equities and options. He previously held Substance Abuse: Jeffrey B. Lane, 68, was fund platform. He was firm. He was formerly an equity partner elected to the board of directors. He is a previously managing at Millian Group Inc. senior sales, trading and management positions at Merrill that director and chairman of the North director and senior managing counsel of —maggie wells served retail, middle-market and institutional clients. Shore-Long Island Jewish Health Pershing. Mr. Toes is a past president of the STA of New York and a System and chairman of the system’s The Laredo Group Inc.: Kendall Allen,43, former governor and secretary of the National Security finance committee, and a director of was named vice president for the EXECUTIVE PROMOTIONS Traders Association. Willis Group Holdings. training and consulting firm. She was The fastest way to get an announcement into Robins Kaplan Miller & Ciresi: —MAGGIE WELLS Ronald M. formerly a consultant and will continue Crain’s is to submit details online. Fill out the form Daignault, 45, joined the law firm as a as a Laredo Group instructor. at www.crainsnewyork.com/submit. The partner. He was formerly a partner at Lowenstein Sandler: Joseph Jean,38,was Executive Moves column is also available online.

26 | Crain’s New York Business | February 21, 2011 20110221-NEWS--0027-NAT-CCI-CN_-- 2/18/2011 11:34 AM Page 1 chemex / INSATIABLE CRITIC information, call (212) 473-7805 or flickr.com Gael Greene THE e-mail [email protected]. NETWORKING RECEPTIONS MONDAY, FEBRUARY 28 The EXECUTIVE AND ENTREPRENEUR WEEK ROUNDTABLE meets to help executives and entrepreneurs plan and prepare for At Patricia’s, personal and business success.The event AHEAD will be held at Villa Berulia restaurant, 107 E. 34th St., from 6 p.m. to 8 p.m. FEB.28-MARCH 6 The fee is $10. Participants can register the son also rises online at http://preciseadvisory.com/events. For more information, call CONFERENCES AND (866) 484-9084, ext. 700, or e-mail Bronx eatery offers SEMINARS [email protected]. TUESDAY, MARCH 1 WHAT SHE’S Italian dishes from THE 92ND STREET Y presents a lecture on CULTURAL EVENTS READING the global century with former General FRIDAY, MARCH 4 Pick two generations Electric Chief Executive Jack Welch and The Cooper Union of the IT’S NO SURPRISE that multitasking Stephen J. Adler, editorial director of presents a FREE CONCERT week lawyer, fundraiser and health care BLIZZARD is threatening Thomson Reuters and former editor in STARRING VIOLINIST DELHI P. advocate Susan Solomon, SUNDERRAJAN to hit at midnight. We chief of BusinessWeek. The lecture begins , playing South co-founder and CEO of The New have been spirited away at 8 p.m., followed by a singles mixer at Indian classical, or carnatic, music. 9:15 p.m. The fee is $29 for the lecture Supporting musicians are Smitha York Stem Cell Foundation, is to somewhere in the GREASELESS, CRISP: The lamb chop and $12 for the mixer. Mr. Welch and Krishnan and Akshay enmeshed in two books at once. Bronx. Even my Bronx- Mr. Adler will not be at the mixer. The Anantapadmanabhan. The concert will First up is Why Architecture Aborn mate is not sure where we are. event will take place at the Kaufmann be held in the Great Hall, 7 E. Seventh Matters, by Pulitzer Prize-winning Seems this vast sweep of dining room PATRICIA’S Concert Hall, 1395 Lexington Ave. To St., from 7 p.m. to 9 p.m. Early 1082 Morris Park Ave., Bronx author Paul Goldberger, her with crystal chandeliers, splashy get more information and to register, call registration is suggested, at http:// husband. “I read it in galleys, but paintings and votives in brick wall (718) 409-9069 (212) 415-5780 or visit www.92y.org. wma-cooper.eventbrite.com. For more www.patriciasnyc.com information, call (212) 353-4135. as his wife and partner. This is niches is the 2-month-old Patricia’s different,” said Ms. Solomon, makeover of a popular pizzeria. A WEDNESDAY, MARCH 2 MANHATTAN CHAMBER OF THURSDAY, MARCH 3 speaking from St. Barts, where the sturdy young man with a shiny The COMMERCE presents “Global Business Take AN IMAGINARY JOURNEY THROUGH couple celebrated their anniversary. shaved head is pouring very hot and CUISINE Italian, old and nuovo Success Stories in Uncertain Economic THE FRENCH COUNTRYSIDE, sampling intensely truffled mushroom soup The book has helped her see PRICE RANGE Entrées $16-$28 Times,” in partnership with Ridgewood cheeses and wines with Max how to get the most out of design over slivers of three ’shrooms sport- Bank. The event will be held at McCalman, director of curriculum of ing a crisp Parmesan tuile.This zup- SERVING Lunch, dinner Ridgewood Bank, 1404 Second Ave., the Artisanal Premium Cheese Center. dollars to make a better place for NYSCF scientists to work. “Science pa di funghi is thrilling. RESERVATIONS Advised from 6 p.m. to 8 p.m. The fee is $20 for The event takes place at the center, 483 And so is a single tremulous sea MCC members and $25 for 10th Ave., from 6:30 p.m. to 8:30 p.m. is hard and has a high degree of scallop in sweet pea purée with shi- NOISE LEVEL Bustles weekends nonmembers. Those who don’t register The fee is $85. Register online at creativity. Environment matters.” itakes, cipolline onion and chips of in advance must pay an additional $10 at www.artisanalcheese.com/ But no vacation is complete I can’t wait to return. the door. Space is limited. RSVP by apple-smoked bacon—a jewel set off prodinfo.asp?number=17FRCW.For without a beach read—in this case, I will definitely go back. Friday, Feb. 25, by visiting more information, call (877) 797-1200. with a last-minute drizzle of Sicilian www.manhattancc.org. For additional —maggie wells Sy Montgomery’s Journey of the olive oil and a pinch of pink Hi- I’ll let them simmer awhile. Pink Dolphins: An Amazon Quest. malayan sea salt. Yes, there’s a menu NO HATS Never again. To view Crain’s classified events listings, go to www.crainsnewyork.com/events —GALE SCOTT

of Italian familiars,too,but we’re here adler arnold for the pyrotechnics of the constant- ly changing chef ’s tasting. ever tasted—“just arrived from Bari A devout son of Naples pours me today,” follows, served with scat- another few ounces of Taurasi.He is tered red ovals of grape tomatoes. my tasting pal, Francesco, the wan- A classic interruption next, the ton Don Juan of the Italian wine house’s braised tripe is remarkably world. Since it was Francesco who tender in its fruity tomato-onion- once brought me to a fussy Italian garlic soffrito with mint and juli- restaurant on Long Island to taste enne of pecorino. The sweet ele- the food of a gifted young Greek gance of the chef ’s squid ink and named Michael Psilakis, I don’t say: cuttlefish risotto is a marvel, too. At Meet SUNY Chancellor “The Bronx? Are you kidding?” Francesco’s urging, Borgognone Indeed, with Francesco’s Nea- joins us at the table for his own din- politan hunger navigating, we are ner:grilled fish buried in vegetables. NANCY ZIMPHER parked on Morris Park Avenue out- “Someone told me I need to diet if I side the place in less than 20 min- want to keep my wife,” he explains, utes.He introduces us to Alessandro directing his chef de cuisine, SUNY Chancellor Nancy Zimpher will discuss why “Alex” Borgognone (“Yes, I must Alessandro D’Alessi, to take a bow. some SUNY schools are trying to declare indepen- DATE: have some French in there, too”). “But we haven’t had pizza,” de nce from the Legislature, how state schools will cope THURSDAY, Alex didn’t know he was a cook till Francesco complains. “She must MARCH 10, 2011 he started cooking and moved into taste your pizza.” with the Governor's budget cuts and if SUNY can save his father’s 6-year-old pizza parlor “We’re not a pizzeria anymore,” the upstate economy. She will be questioned by TIME: next door in 1999.It took almost two Alex protests. Then he pushes the Crain's political editor Erik Engquist and another 8:00-8:30 AM years to build the many-splendored fish away. “I’ll join you. My wife can member of the media. NETWORKING BREAKFAST version beside the shuttered pizze- find another guy if she doesn’t like me ria. Now his father, Calogero, a vet- the way I am,”he announces.A swath 8:30-9:30 AM eran of Veniero’s in Manhattan,does of the burrata from Bari dotted with PROGRAM all the breads and desserts here. those aristocratic grape tomatoes ar- COST TO ATTEND: “I’m giving you a tasting of rives on a small round, beautifully VENUE: everything,” young Borgognone blistered. “For me, the dough is too $70 for individual ticket(s) if pre-registered by March 3rd; $75 thereafter. THE YALE CLUB warns. “So don’t eat the bread.” soft and too salty,” I confess. $650 for table(s) of ten if pre-registered by March 3rd; $750 thereafter. 50 VANDERBILT AVENUE Not eat Dad’s bread? Crusty and “Too salty,yes,but soft is perfect,” grainy wheat bread, homemade, says Francesco,railing against Amer- You must be pre-registered to attend this event. No refunds permitted. Pre-register online by going to crainsnewyork.com and clicking warm in a napkin. Impossible! icans who don’t appreciate Neapoli- on “Events”, or fax your business card and credit card information to “Zimpher Breakfast Forum” at 212-210-0499. For more Though I will regret that second tan pies, the gold standard of pizza. information, call the Events Hotline at 212-210-0739. slice several courses later, long be- In my honor, a firmer and crisper fore I confront the greaseless, crisp margherita version is produced. And Milanese battered lamb chop then dessert is served: poached pears topped with a crunchy rubble of with a too-sweet Port sauce and a chopped raw vegetables. Butter is cube of dazzling sweet Gorgonzola. the secret of that clean-tasting crispness, he says. Buttermilk-rich Copyright © 2011 by Gael Greene. mozzarella—the lushest burrata I’ve Syndicated by www.insatiable-critic.com.

February 21, 2011 | Crain’s New York Business | 27 CN014219 2/4/11 3:53 PM Page 1

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