Reimagined Innovative Ideas to Turn the Infamous Island Into a New York Destination P

20160229-NEWS--0001-NAT-CCI-CN_-- 2/26/2016 8:18 PM Page 1 So many mouths to feed P.6 | Health care price check P.9 | THE LIST: Top office leases P.14 CRAINS ® FEBRUARY 29-MARCH 6, 2016 | PRICE $3.00 NEW YORK BUSINESS Rikers Island Reimagined Innovative ideas to turn the infamous island into a New York destination P. 16

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FEBRUARYCRAINS 29-MARCH 6, 2016

FROM THE NEWSROOM | JEREMY SMERD Paper (and plastic) trails IN THIS ISSUE 4 AGENDA

TWO FAMILY BUSINESSES: One will make it to the next 5 IN CASE YOU MISSED IT generation; the other will not. The difference? One grows in 6 SPOTLIGHT

New Jersey,while the other ran out of room in New York. 7 RETAIL Wonder Woman Imperial Bag & Paper Co. and Borax Paper Products are of Wall Street’s 8 ASKED & ANSWERED ambulance biz the kind of New York area companies that most people have goes belly-up 9 HEALTH CARE never heard of, but that nonetheless work behind the scenes 10 to help restaurants and other businesses serve New Yorkers. WHO OWNS THE BLOCK That plastic salad bowl you’re eating out of? The paper bag 11 REAL ESTATE used to carry it to your desk? 12 VIEWPOINTS Chances are one of these two companies supplied it. It’s harder for the 14 THE LIST Both had been growing in recent years, a result of independent to be industry consolidation. Imperial’s growth has been “ FEATURES especially dramatic. The company ranked No. 67 on in this ever- 16 COVER STORY Crain’s largest private companies list last year, with $350 consolidated 24 GOTHAM GIGS million in revenue. Imperial planned for growth. The company in 2014 moved into a Jersey City logistics facility business 25 SNAPS with more than a half-million square feet. 26 FOR THE RECORD Borax, meanwhile, was squeezed into two warehouses in Hunts Point in the 27 PHOTO FINISH Bronx. It had $83 million in revenue and was growing. It needed more room, but, with its lease expiring, couldn’t find it in that borough, let alone another one. Space, of course, is at a premium in New York City, especially for distribution companies moving tons of products. It can be found, if you get creative enough. One option for manufacturing, as we explore starting on Page 16, is Rikers Island. Then Imperial CEO Robert Tillis called. He had been a paper shopping-bag manufacturer but got out of the business in the face of global competition. He became a distributor when he bought Imperial in 2007; that same year his son, Jason, came into the business. The duo have bought nine companies in as many P. 24 MIMI LIEN years. The latest was Borax, in a deal that closed last week. “It’s harder for the independent to be in this ever-consolidated business,” CORRECTION ERIC FISHER recently joined law firm Binder & Schwartz as a Tillis, 61, said. “Even if you buy $900,000 from a vendor, they don’t return your partner. His surname was misspelled in the Feb. 8 Executive calls.” Moves. Marc Borak, now the former president of Borax, was at the helm of a second- generation business that also employed his brother-in-law, his daughter and his nephews. The day after the deal closed, Borak, 68, was on his way to Florida, retired. The idea of moving to New Jersey affected his decision. “We would have had to displace 75% of our workforce,” he said. Jason Tillis, Imperial’s 33-year-old president, is already looking ahead. “We’ve invested a ton in technology; we’ve built for the future,” he said. “Borax ON THE COVER had not. They basically ran out of time.” ILLUSTRATION BY: TOM FOTY

DIGITAL DISPATCHES CONFERENCE CALLOUT MARCH 15 Go to CrainsNewYork.com CRAIN’S ARTS AND READ Brooklyn Brewery CULTURE BREAKFAST says it is scouting for as much as 60,000 square feet BEWARE THE IDES OF MARCH? Nah! in the borough. Its longtime Join Crain’s and New York’s facility in Williamsburg leading artistic directors for a serves as a plant, tasting > tell-all discussion about the state room and retail shop. The of the city’s culture business. Brooklyn Navy Yard and Panelists include Ty Jones of the Industry City are seen as Classical Theatre of Harlem. suitable new spots. CON EDISON Facebook co-founder Chris Hughes sold 4 IRVING PLACE The New Republic to liberal publisher Win McCormack, an Oregonian writer and 8:30 a.m. to 10:30 a.m. founder of Brooklyn-based literary quarter- [email protected] ly Tin House. The deal caps a tumultuous Vol. XXXII, No. 9, February 29, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double year and a half for the 102-year-old publi- issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., cation. New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address LISTEN changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. to a discussion of Rikers Island’s For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. future: what should be done, what could be (GST No. 13676-0444-RT) accomplished. CrainsNewYork.com/podcast

FEBRUARY 29, 2016 | CRAIN’S NEW YORK BUSINESS | 3 20160229-NEWS--0004-NAT-CCI-CN_-- 2/26/2016 7:50 PM Page 1

AGENDAWHAT’S NEW FEBRUARY 29, 2016 Closing Rikers is feasible—and easier than fixing the decrepit complex

t’s fun to fantasize about what Rikers Island could become if there weren’t a jail complex there, as we do beginning on Page 16. But the situation on Rikers today is deadly serious. Thousands of New Yorkers, many of them young, are being Isteered in exactly the wrong direction by their incarceration at Rikers. They are assaulted by fellow inmates and correction officers, isolated from family members and hardened rather than helped—receiving little in the way of treatment or services that would reduce their BAD SIGN: Rikers Island chances of being arrested again. Weapons are smuggled in or fash- has long been ioned from objects ripped from the aging buildings. a disaster for About 85% of Rikers’ 7,800 detainees are simply awaiting their day detainees, staff and in court, during which time they often lose their jobs, housing and visitors. other connections with their communities. Many serve more time at Rikers than they would if convicted, which pressures them to cop inmates with signs of mental illness could be diverted to treatment. To pleas whether they are guilty or not. The city spends $300 million a house the rest, existing detention facilities in Brooklyn, Manhattan and year shuttling people to and from the the Bronx could be expanded and island, including security costs. Experts have outlined the steps modernized, and a new one built in City Council Speaker Melissa Queens to replace one that has closed. Mark-Viverito has rightly said that needed: bail reform, faster processing With these changes, fewer correction closing Rikers is worth pursuing now, of arrests, mental-health screening officers would be needed, so their union and has formed a commission to and new local jails will fight change any way it can. Already it examine how it might be done. is spreading the notion that neighborhood Though Mayor Bill de Blasio pointed jails put New Yorkers at risk, which is out that the city lacks the money or the facilities to relocate Rikers’ absurd. We already have three of them. If anything, they make population, the speaker’s goal is actually quite achievable. communities safer because correction officers travel in and out of the jails. Experts have already outlined the necessary steps. Faster processing Pushing to close Rikers will accelerate changes that reduce crime, after arrests could reduce by thousands the number of beds needed ease suffering and save cash. It will require money and resolve, but systemwide. Bail reform could eliminate the need to detain people who fixing Rikers and its corrupt, violent culture would be harder. And once are not a danger to society, and other methods could be employed to Rikers is razed, we can get to the fun part: making the island into ensure they appear for their court dates. More of the 40% of Rikers something productive, rather than destructive. – THE EDITORS

FINE PRINT The number of New Yorkers working on Wall Street last year was 176,900, the highest figure since 2008, according to data released last week by the Securities Industry and Financial Markets Association. That bodes well for city and state coffers, considering the average salary on the Street is about $400,000, according to the state comptroller’s office.

BY GERALD SCHIFMAN STATS 25 WORDS OR LESS TAKING A BITE OUT OF RESTAURANTS NEW YORK CITY’s restaurant scene has hit a lull as residents “Let’s be clear: There spend more money on quick-serve food and coffee. CITY AND THE are going to be THE BEST AND WORST SALES-GROWTH RATES IN 2015 people who are 20% Restaurants tallied 16.6% 16.4% in the New York 14.5% opposed to any 15 46,793 metropolitan area development. Those in fall 2015, a 3% drop from the are sectors of our previous year 10 city that are 5 Sales growth at 0 unreasonable % New York City -0.3% 3.5 restaurants, down -1.5% — City Council Speaker Melissa -5 from 5.6% in the previous year Mark-Viverito, discussing the mayor’s -6.3% housing plan at a Crain’s breakfast -10% Bagels & Cafés Delis French Steakhouses Bakeries doughnuts

ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY Sources: FirstData, NPD Group BLOOMBERG NEWS BLOOMBERG

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AGENDA ICYMI CRAINS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan assistant to the publisher Alexis Sinclair, 212.210.0701 EDITORIAL The social welfare editor Jeremy Smerd assistant managing editors Erik Engquist, of Bill de Blasio Peter S. Green web editor Amanda Fung copy desk chief Steve Noveck OOD-GOVERNMENT GROUP Common art director Carolyn McClain photographer Buck Ennis Cause/NY last week called for an senior reporters Joe Anuta, Aaron Elstein, Matthew Flamm, Daniel Geiger investigation last week into non- reporters Rosa Goldensohn, G Jonathan LaMantia, Caroline Lewis profit organizations formed to support data reporter Gerald Schifman Mayor Bill de Blasio and funded by powerful web producer Peter D’Amato columnist Greg David special interests. contributing editors Tom Acitelli, Theresa Agovino, Barbara Benson, Campaign donations are tightly regulated Erik Ipsen, Suzanne McGee, Judith Messina, Cara S. Trager in New York City. An individual cannot give ADVERTISING more than $4,950 to a candidate’s election www.crainsnewyork.com/advertise advertising director Irene Bar-Am fund. Those who do business with the city [email protected] or 212.210.0133 have even lower limits, and corporations senior account managers cannot donate at all. But donations to social-welfare organizations, known by their tax-code designa- Zita Doktor, Jill Bottomley Kunkes, Rob Pierce, Stuart Smilowitz tion 501(c)(4), are unlimited. These entities can spend them to further “the common good and gener- account managers Jake Musiker senior marketing coordinator al welfare of the people of the community,” according to the Internal Revenue Service. LeAnn Richardson Campaign for One New York United for Affordable NYC sales/events coordinator Ashlee Schuppius The is such an organization, as is its spinoff . They are 212.210.0282 affiliated with the mayor and hire consultants and strategists to build support for his agenda. [email protected] ONLINE Campaign for One New York has raised more than $1 million from real estate developers since its general manager Rosemary Maggiore 212.210.0237 inception in 2014, Politico reported, as well as six-figure donations from unions including 1199 SEIU. [email protected] The group’s defenders say its contributors back de Blasio’s progressive mission. But its opponents CUSTOM CONTENT director of custom content say it has been able to raise more than $4 million since its inception at the end of 2013 because it is a Patty Oppenheimer 212.210.0711 [email protected] way for moneyed interests to curry favor with the mayor. And six-figure donations curry a lot more EVENTS favor than $4,950 ones do. – ROSA GOLDENSOHN www.crainsnewyork.com/events director of conferences & events Courtney Williams, 212.210.0257 [email protected] MetLife to shed its roots DATA POINT month extension on their 2015 tax manager of conferences & events The company is in talks to sell its returns due March 15 because the city Adrienne Yee LOBBYISTS SPENT A RECORD AUDIENCE DEVELOPMENT life-insurance division to said new forms aren’t ready yet. director of audience & content Massachusetts Mutual Life $71.9 MILLION TRYING TO SWAY Changes in corporate tax law are partnership development Insurance Co. The unit has 4,000 expected to benefit small businesses: Michael O’Connor, 212.210.0738 CITY HALL DURING DE BLASIO’S [email protected] employees who sell policies. Tax rates were cut to 4.425% from CRAIN’S 5BOROS MetLife has been restructuring in FIRST YEAR IN OFFICE. THAT’S 8.85% for manufacturers with New www.5boros.com response to stricter regulation. York City net income under $10 mil- Irene Bar-Am, 212.210.0133 UP FROM $62.6 MILLION IN [email protected] lion, and to 6.5% from 8.85% for SPECIAL PROJECTS Verizon dials up more bandwidth 2013, ACCORDING TO nonmanufacturers with net income manager Alexis Sinclair 212.210.0701 The telecom giant acquired activist under $1 million. – AMANDA FUNG [email protected] MUNICIPAL FILINGS REPRINTS investor Carl Icahn’s fiber-optic reprint account executive Krista Bora business, XO Communications, for 212.210.0750 about $1.8 billion. The deal will PRODUCTION production and pre-press director boost Verizon’s cellphone network it will eventually alleviate traffic. Simone Pryce by giving it more Internet band- App users will be able to pay and media services manager Nicole Spell width for corporate customers as add time to meters—and even get SUBSCRIPTION CUSTOMER SERVICE www.crainsnewyork.com/subscribe well as airwaves to test new wire- credit for unused paid time. [email protected] less technology. 877-824-9379 (in the U.S. and Canada). Hospital to pay Eric Garner’s family $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print Discrimination suit Richmond University Medical Center subscriptions with digital access. B&H Photo & Electronics Corp. is has agreed to pay $1 million to the to contact the newsroom: www.crainsnewyork.com/staff being sued by the U.S. Department family of Eric Garner, who died in 685 Third Ave., New York, NY 10017-4024 of Labor for allegedly discriminat- July 2014 after being placed in a phone: 212-210-0100 fax: 212-210-0799 ing against Hispanic workers and chokehold by police. The hospital Entire contents ©copyright 2016 minority and female job applicants dispatched paramedics and treated Crain Communications Inc. All rights reserved. ®CityBusiness is a registered at its Brooklyn Navy Yard ware- Garner. The settlement was not part trademark of MCP Inc., used under license house. Known for its huge retail of the city’s $5.9 million agreement. agreement. store on the West Side, the Garner’s death fueled a national CRAIN COMMUNICATIONS INC. Historic sites BOARD OF DIRECTORS Manhattan-based firm is in danger debate about police treatment of chairman Keith E. Crain After decades of inaction on 95 of losing $46 million in government minorities. president Rance Crain sites, the Landmarks Preservation treasurer Mary Kay Crain, Cindi Crain contracts. B&H supplies agencies, Commission has deemed 30 of executive vp, operations William Morrow including the FBI, with cameras and Real-time crime data executive vp, director of strategic other video equipment. New Yorkers will have access to the them worthy of preservation. operations Chris Crain Among them are the Pepsi-Cola executive vp, director of corporate most current NYPD crime stats with operations K.C. Crain Never letting the meter expire Compstat 2.0, which will also be sign on the Long Island City senior vp, group publisher David Klein waterfront, Green-wood Cemetery vp/production, manufacturing David Kamis A new app allowing drivers to feed available to cops through their chief financial officer Thomas Stevens parking meters across the city will Police Department-issued smart- in Brooklyn and the Bergdorf chief information officer Anthony DiPonio be rolled out by the end of the year. phones. Crime victims’ names will Goodman building in midtown founder G.D. Crain Jr. [1885-1973] The mayor is hoping the pay-by- not be disclosed to the public. Manhattan. The commission will chairman Mrs. G.D. Crain Jr. [1911-1996] secretary Merrilee Crain [1942-2012] cell technology, developed by vote on the sites by the end of the Atlanta-based Parkmobile, will Tax extension year after a series of hearings.

BUCK ENNIS, NEWSCOM make it so much easier to park that Local business owners can get a six-

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AGENDA SPOTLIGHT SMALL BUSINESS

A one-stop shop for Thai basil jalapeños and other goodies Mouth.com aims to be an artisanal food clearinghouse BY MATTHEW FLAMM

raig Kanarick spends his days taste-testing Brooklyn-made pickles and locally distilled small-batch bourbon in an effort to turn boring food gifts into something cool. “When most people think of a food gift, they think of a gourmet gift basket that’s pseudo-overflowing and wrapped Cin giant cellophane with a ribbon,” Kanarick said. “There’s a wide range of much more interesting products out there.” Gifts are just one way Kanarick, 49, hopes to use his four-year-old e- commerce site, Mouth.com, to connect artisanal food makers from around the country with online consumers. The challenge for Dumbo-based Mouth Foods is to pick out the best indie-produced specialty products—everything from white truffle popcorn to Szechuan peanut butter—and make them easy to find on a site that people will shop from again and again. There’s no question it’s hard. The food e-commerce landscape is lit- tered with failures, including Gilt Taste, a high-profile site that lasted barely two years, and San Francisco-based Good Eggs, which closed its New York delivery operation last summer. One goal is to encourage sampling of the 1,000-plus items on Mouth’s shelves. That’s where Kanarick’s digital chops come in. A graduate of the MIT Media Lab, where he studied user experience, he co-founded in 1995 a signature company of the dot-com era: the marketing giant Razorfish. For years he helped Fortune 500 companies develop their online presence. Now, as Mouth CEO, he works on making the company’s selections— whether it’s pickled cauliflower or Madagascar chocolate—irresistible to users. Corporate gifts help, as do subscription boxes, which offer more predictable revenue than routine website sales. Mouth has doubled the number of its subscription packages to 16 during the past year. Subscription revenue was up 100% in 2015. ROLLING: CEO Priced from about $40 to $80 a month, the boxes include “Bacon Every Craig Kanarick Month,” “Cravings” (Thai basil jalapeños, garlic dill pickles) and “Best of at Mouth.com’s Mouth” (apple-caramel preserves, organic whole-grain pasta). Dumbo “There are opportunities all over the map,” said angel investor Joanne warehouse Wilson, who was the startup’s first backer. She cited consumer gifts—a $14 billion category, according to research firm Packaged Facts—and “product-of- the-month” clubs that could make use of Mouth’s hard-to-find specialties. Kanarick and Wilson see the biggest opportunity in corporate gifts, a $9 billion industry, according to Packaged Facts, and the fastest-growing part of Mouth’s business, making up 15% of sales. A $5.5 million funding round in October has helped Mouth build its corporate sales business. “Those [traditional] products are old and stale,” Wilson said.

Connecting foodies Kanarick got the idea for Mouth about six years ago during weekend vis- its with his kids to Williamsburg, where he found that indie food makers had great products but no digital skills, and felt he had stumbled onto the most interesting business opportunity since the early days of the Web. Rather than create a marketplace connecting buyers with producers, most of whom had no experience in online marketing or shipping, Kanarick decided Mouth would control the customer experience. “I was going to help these small businesses grow, and at the same time make it FOCAL POINTS easier for people like me, who love these products, to get them,” he said. That meant leasing a 6,000-square-foot warehouse directly across from the company’s Jay Street headquarters, buying the goods outright, LOCATION Dumbo, Brooklyn and hiring workers to pack and ship them. Mouth also opened a liquor FINANCING $8.4 million store, the Indie Spirits + Wine Gallery, around the corner on Water Street. Having a liquor license allows the company to ship its collection of some FOUNDERS Craig Kanarick, CEO; Sam Murray, chief operating officer; Nancy 250 spirits and wines. For specialty food producers whose goods make Kruger Cohen, chief creative officer their way into subscription boxes, Mouth serves as a marketing tool. INVESTORS KarpReilly, Vocap, Cherubic Ventures, Bridge Investments, VTF “It gets our product into the hands of the customers we’re looking Capital, Andy Appelbaum, Jason Calacanis, Gary Belsky* and Joanne Wilson for,” said Joanne Lomanto, co-founder of baker Brooklyn Brittle. PLAN FOR GROWTH Mouth is focused on the gift market—corporate and Mouth will need to keep innovating. The gift market is largely season- consumer—as well as a variety of monthly subscription packages to grow sales of al, and the subscription-box market may already be saturated. “There is its hand-picked offerings. The company has the benefit of operating in a big and definitely the risk of subscription fatigue,” said Keith Anderson, vice fast-growing market: Specialty food sales totaled a record $109 billion in 2014, president of strategy at e-commerce consultancy Profitero. and are expected to be up 10% in 2015, according to the Specialty Food Mouth can also expect competition in the online artisanal food arena, Association. said Tom Potter, co-founder of Brooklyn Brewery and a director of the Brooklyn Roasting Co., which sells its coffee on Mouth. “But they’re in Note: *Belsky does consulting work for Crain’s. Ⅲ BUCK ENNIS the right place”—Brooklyn—“and they’ve got a nice start.”

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AGENDA RETAIL

Another e-commerce site hits Main Street (actually West 39th)

Lingerie seller Adore Me to greet customers with stylist, iPad BY MATTHEW FLAMM

dore Me, shoppers with sizing Klapka characterized and can be duplicated which has and styles. Using an the launch of the shop in other cities. Adore built a $43 iPad, customers will as an experiment that Me also will be testing million-a- place orders online, can help the company more pop-up shops in ADORABLE: Pop-up shop at Ayear e-commerce and the lingerie will be and its customers get to other cities in the com- the Hudson Hotel business since its 2012 shipped to them. know each other better, ing year. Ⅲ launch, soon will see what having a brick- and-mortar shop does for lingerie sales. It’s the latest online retailer to open a physical location. Following a suc- cessful three-day experiment with a pop-up shop at the Hudson Hotel in February, Adore Me is opening a by- appointment location April 5. The 600- square-foot space, in the company’s West 39th Street headquarters, will offer 45- minute sessions with an Adore Me stylist. Appointments will be for one to three people at a time. Interested shoppers can sign up online to get an early jump on when they can schedule an appointment. Adore Me will start taking appointments in mid-March. Founded in 2010 by Harvard Business School student Morgan Hermand-Waiche, Adore Me has set out to challenge Victoria’s Secret by using low 63,500 SF AVAILABLE prices and a wide variety of styles to reach 1200 WATERS PLACE, BRONX | WILL SUBDIVIDE TO 5,000 SF young women. The aim of the new shop is to bring the feel of the online site to an off- line setting. NOW OFFERING FOR LEASE: CLASS A OFFICE SPACE AT “What sets Adore Me apart is that we’re 1200 WATERS PLACE IN THE HUTCHINSON METRO CENTER. really focused on a certain superperson- alized experience for » First-class amenities, abundant For Leasing Information shoppers,” said parking, complimentary shuttle Call (718) 518-8600 Sharon Klapka, vice service and MTA bus service to James MacDonald: [email protected] president of business @ nearby subway Josh Gopan: jgopan simdev.com and brand development. “We think we » Now Open: Marriott Hotel! are creating a new way to shop for lingerie that is a lot more View digital brochure and ﬂoor plans at hutchmetrocenter.com engaging than if I walked in and saw a bra and bought it.”

ADORE ME The stylist will help

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AGENDA ASKED & ANSWERED NONPROFITS INTERVIEW BY CAROLINE LEWIS

DAVID RIVEL The Jewish Board

his past summer, the former Jewish Board of If politicians are Family and Children’s Services—now simply known competing to see who as the Jewish Board—took on $75 million worth of “ behavioral-health programs from Federation can provide more sup- TEmployment & Guidance Services (FEGS), a fellow nonprofit portive housing, who can that had filed for bankruptcy, making David Rivel chief do more for the home- executive of the largest human-services organization in the less, who can do more for city.The Jewish Board serves some 43,000 New Yorkers with mental health, that’s a mental-health issues, developmental disabilities and trauma. “Scale absolutely matters,”Rivel said.The organization had great thing for the little time to prepare for the impact of absorbing the people of thousands of clients, 800 staff members and 25 facilities New York previously managed by FEGS, but it was able to take on all of them without missing a beat.“It all came over on a single day,” said Rivel.“June 1.”

What lessons can be learned from FEGS’ demise? DOSSIER It took place against a backdrop of diminishing levels of WHO HE IS Chief reimbursement for health and human services, in general. So if executive you’re not adequately capitalized, if you make some mistakes, AGE 54 you can find yourself out of business pretty quickly. One of the critical things that went wrong, and it’s something that’s a real BORN Manhattan object lesson for us, is that they didn’t have a culture in which RESIDES Astoria mistakes and challenges were freely and easily communicated EDUCATION throughout the organization. Wesleyan University, B.A. in social studies; Will we see a wave of consolidation among social-services agencies? M.A. in film history FEGS is just one example of what we’re seeing. There will and aesthetics definitely be other organizations that won’t make it. Hopefully, BUM-RUSH THE the city and the state can set aside the funds to make orderly SHOW Rivel put on transitions happen, and these can take place before an outdoor shows as organization gets to a crisis point and has to declare bankruptcy. executive director of the The amount of time we had to make the transition happen with City Parks Foundation before joining the Jewish FEGS was really not adequate to do the kind of job that we Board. Public Enemy at wanted. We did it. And, of the people served by FEGS before Central Park’s Summer- June 1, 97% of them were served by us in that first month after Stage and Shakespeare in we took over. So nobody fell through the cracks. But you can’t Harlem’s Marcus Garvey always count on that. Park were two of the most memorable events, he said. City Hall has been focusing on homelessness and mental health recently. KEEPING KOSHER When How does that affect your operations and resources? Rivel’s organization We’ve been very much a part of the city’s planning, particularly rebranded, it replaced a clunky on the mental-health side, but also in homeless services. One of abbreviation (JBFCS) with the the key items in the [city’s mental-health] report calls for Jewish Board, and added a new bringing mental-health services to 100 public schools around tagline. “The slogan ‘Health and human services for all New the city, and we’ve received a grant to provide [those] services. Yorkers’ is meant to make the point that we serve everybody, and How quickly can the city scale up mental-health services for schools? the Jewish Board is meant to say It’s going to take a little bit of time and some money, but the that we’re proud of our Jewish scope of the plan is really logical and well thought out and history,” he said.

absolutely achievable. It will be middle school and high school to BUCK ENNIS begin with. What we’re going to do is a combination of teaching the school [staff] how they can recognize the signs of kids who need help and making sure they have the tools to refer kids and families to appropriate resources—with some direct services.

How has the rivalry between Mayor Bill de Blasio and Gov. Andrew Cuomo affected social services? If politicians are competing to see who can provide more supportive housing, who can do more for the homeless, who can do more for mental health, that’s a great thing for the people of New York. Let’s have more people compete with each other. Ⅲ

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AGENDA HEALTH CARE

The cost difference between an MRI at two area hospitals? About 1,000%

Stealth researchers find out what most cannot: prices BY JONATHAN LAMANTIA AND CAROLINE LEWIS

ore New Bronx. That 1,000% differ- if they’ve just landed from TransCare said in a letter tem’s senior assistant vice Yorkers have ential represented the the moon.” to employees that it had president for facilities been forced to greatest price variation in spun off its unit providing development, at a City shop around for any single region surveyed. Ambulance biz goes belly-up paratransit to New Yorkers Council hearing on Sandy Mhealth care, thanks to the The average price for the The Brooklyn ambulance with disabilities and its recovery last week. proliferation of high- test was $2,213. company controlled by operations in the Hudson Weinstein was unsure how deductible plans. But getting Mount Sinai Hospital and funds affiliated with the pri- Valley, saving 700 jobs, but much of the FEMA money a price quote, even for a NYU Langone provided esti- vate-equity firm of Lynn would liquidate its opera- has been spent. common test, is challenging. mates in a timely manner, Tilton, branded years ago as tions in New York City and Pioneer Institute, a but quotes were unattain- the “Wonder Woman of Wall Westchester. Expanding health care research organization in able or incomplete at Lenox Street,” filed for Chapter 7 Fidelis Care won a $3.4 bil- Boston, secretly surveyed Hill, Staten Island University bankruptcy last week, dis- Sandy projects need until 2022 lion, five-year state contract, 54 U.S. hospitals in six Hospital’s North Campus rupting the city’s emer- It will take more than five the largest among 13 insurers, metro regions, including 11 and Bronx-Lebanon. gency-response system in a years for NYC Health + to provide insurance for New in the New York City area. “Hospitals, including move that could result in the Hospitals to finish the flood Yorkers with incomes Researchers posed as those in New York, need to loss of 1,200 jobs. walls and other storm- between 138% and 200% of patients trying to get a price adopt a culture of price The company, preparedness projects FEMA the federal poverty level, as estimate for an MRI. The transparency, and it must TransCare, had been oper- funded with $1.7 billion at well as legal immigrants who results were discouraging. start at the top with the ating ambulances for 81 the end of 2014. don’t qualify for Medicaid. Eight of the 11 local hos- CEOs and the board of shifts daily in the Bronx and A storm-resilient build- The Essential Plan was a pitals gave quotes, but directors,” said Barbara Manhattan to some of New ing for Coney Island new option on the state prices ranged from $428 at Anthony, a senior fellow at York City’s largest hospi- Hospital is slated to be health insurance exchange Meadowlands Hospital Pioneer. “A system has to tals, including Mount Sinai, completed in 2019, and all this year, providing cover- Medical Center in Secaucus, be developed so that when NYU Langone Medical projects will be finished by age with no deductibles and N.J., to $4,544 at Montefiore someone calls and asks for a Center and Montefiore early 2022, said Roslyn monthly premiums of $20 Medical Center in the price they’re not treated as Medical Center. Weinstein, the health sys- or lower. Ⅲ

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FEBRUARY 29, 2016 | CRAIN’S NEW YORK BUSINESS | 9 20160229-NEWS--0010-NAT-CCI-CN_-- 2/25/2016 7:02 PM Page 1

AGENDA WHO OWNS THE BLOCK REAL ESTATE

Commercial project with huge upside 25 KENT AVE. And a barometer for de Blasio administration on rezoning manufacturing

BY TOM ACITELLI

eveloper Toby Moskovits wants to build an eight-story, 400,000-square-foot office building at 25 Kent Ave., a Dblock-size lot in Williamsburg, Brooklyn. She has applied for a THE GAME-CHANGER change to allow offices 25 KENT AVE. SOMETIMES SMALL THINGS and light manufacturing 17 KENT AVE. Toby Moskovits bought the site, in an area zoned for man- bounded by North 12th and North The 3,400-square-foot single-family ufacturing, and her proj- 13th streets from Kent to Wythe home is a good example of the proper- avenues, for $31.75 million in 2013. ect is seen as a barometer ties in the area that are not large-scale The sale of a 25% stake last year to for how the de Blasio warehouses with famous tenants or Philadelphia investor Rubenstein potentially transformative development administration will treat Partners valued 25 Kent—also known sites. The deed on this house was trans- as 19 Kent—at about $130 million. commercial develop- ferred to Ronald Civitello in early 1989 ments in manufacturing from an apparent relative named areas. Constance Civitello. The deed lists the sales price as $0. Ronald Civitello did An office block, if not respond to a call for comment. approved, would change the character of the area, currently dominated by a city-owned event space and an Amazon-leased SHOWTIME warehouse. It would also appear to 50 KENT AVE. be well timed. Brooklyn recorded the The city-owned venue can seat 6,000 highest rate of job growth from 2007 for concerts and other events in to 2015 of any large U.S. county, warmer weather. It also hosts the Brooklyn Flea on Sundays. The state increasing by 4.3% annually, owned the space, formerly known as according to economist Jed Kolko. Williamsburg Park, until 2012. “Overall, it’s a really strong part of Brooklyn,” said Daniel Tropp, a vice president at investment-sales firm Ariel Property Advisors. It “probably surpasses a lot of more-established areas right now in terms of interest.” Tropp said the 25 Kent AMAZONIAN development would like- 35 KENT AVE. ly “be really good for the Also known as 74 N. 12th St., this 40,000- area.” He pointed to a square-foot warehouse was sold in February dearth of office space 2008 to a limited-liability company controlled by G4 Capital Partners of Roslyn, L.I. The firm there, compared with leased the warehouse to Amazon in 2012 for 10 RABBINICAL DISPUTE retail, hotel and multi- years, with the option to renew for five more. The 9 KENT AVE. family space, as well as e-commerce behemoth will use 35 Kent to photograph products. G4 Capital founding principal This two-story, 111,300-square-foot warehouse is the buildings for other com- Louis Silverman declined to disclose Amazon’s headquarters of the Albest Metal Stamping Corp., a mercial uses.Ⅲ rent or the sale price. The latter has been report- heavy manufacturing business that matches the ed to have been $3 million. area’s current zoning. Albest built the warehouse in 1980 with $2 million in bonds from the New York City Industrial Development Agency. The building nearly sold for $27 million in 2012, according to media reports. The ownership of the property is in arbitration in a rabbinical court, according to a 2012 city record. The dispute involves Solomon Witriol, the executor of the estate of apparent relative Jonah Witriol, whom the city record names as a shareholder in Albest. Solomon Witriol could not be reached for comment. WWW.OASISNYC.NET, HERITAGE EQUITY HERITAGE PARTNERS WWW.OASISNYC.NET,

10 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 29, 2016 20160229-NEWS--0011-NAT-CCI-CN_-- 2/26/2016 3:11 PM Page 1

AGENDA REAL ESTATE

TOWERING HOPES: Tower plan proves too tall These apartment buildings would come down for a an order for solo developer Sutton Place spire. Builder’s decision to forsake partners leads to foreclosure

oseph Beninati’s downfall may have been chase to boost the size of a project in the district. greed. The developer’s decision last year to The de Blasio administration is now studying how go it alone on a project to build a 950-foot- much these air rights might be worth, and supports tall luxury condo tower rather than take on the steering committee’s idea to allow landmarked Jpartners came back to haunt him: His proper- buildings to transfer them farther than currently per- ty was scheduled to be auctioned Feb. 29 at a mitted. A newly created fund will take a cut of the foreclosure sale. transactions and put the cash toward public When Beninati, managing member of the improvements. — JOE ANUTA Bauhouse Group, bought three contiguous five- story Sutton Place apartment buildings for $32.3 City Council speaker unveils plan for East Harlem million in 2015 , he entered into negotiations with East Harlem residents want 100% affordable a handful of potential partners who could help him housing on city-owned sites and denser develop- and his firm develop the tower. ment along avenues, according to a new plan intend- Tackling the project in tandem would have ed to reflect the neighborhood’s priorities. taken away some of the risk, but it also meant that Mayor Bill de Blasio announced last year that he Beninati would have to split the project’s potential intends to rezone East Harlem. That prompted City dential boom: 11,000 apartments have been built or are profits. Instead, Beninati dropped talks with those Council Speaker Melissa Mark-Viverito, Manhattan in development. The plan was originally estimated to possible investors and turned to a lending firm: Borough President Gale Brewer and the local com- yield just 979 units. Meanwhile, rather than the pre- Gamma Real Estate, run by N. Richard Kalikow, an munity board to kick off a process culminating in a dicted 4.6 million square feet of office space, down- executive long known as a savvy real estate 138-page plan released last week. — ROSA GOLDENSOHN town Brooklyn got just 1.3 million, an analysis by investor. Adams found. An industry source noted that office Kalikow offered Beninati an alluring alterna- Brooklyn pol aims at office plan that went awry creation has been slow citywide except for the subsi- tive. Rather than ask for ownership in the project, Borough President Eric Adams wants to take dized World Trade Center and Hudson Yards sites. he would provide Beninati with $147.25 million in another shot at building more commercial space in Adams did not call for subsidies, but said the city loans that Beninati would use to purchase the three downtown Brooklyn, after a 2004 rezoning yielded a should consider another rezoning. He also wants gov- buildings at 428-432 E. 58th St. and pay for other flood of apartments and little office space. ernment offices moved out of downtown Brooklyn to costs associated with preparing the site for devel- Downtown Brooklyn is the city’s third largest make way for commercial uses. He called as well for opment. Beninati believed he could take out con- business district, after midtown and downtown the city’s Economic Development Corp. to fast-track struction loans to pay off his debt with Gamma and Manhattan, and it was supposed to get much bigger its request for proposals to build commercial space. begin building or sell the project to another devel- after a 2004 rezoning. Instead it experienced a resi- — ERIK ENGQUIST oper for a profit. That proved to be a miscalculation. Lenders have backed away from financing new towers in recent months as the luxury market has cooled. On Jan. 19, Gamma’s debt, which by then had bal- looned to over $180 million with interest and other fees, matured on the development. A foreclosure auction this week will put the property in someone else’s hands. The most likely buyer? Gamma Real Estate. – DANIEL GEIGER Plan to rezone midtown east gets going The city’s long-awaited plan to rezone midtown east to make way for larger, modern office towers is set to be released by the end of the year, according to a letter from the mayor’s office that was sent to elected officials in February. The de Blasio administration wants to enter its proposal into the months-long public-review process before Dec. 31, meaning whatever law is passed could take effect by the summer of 2017. The letter was addressed to Manhattan Borough President Gale Brewer and City Councilman Daniel Garodnick, who co-chaired a group called the East Midtown Steering Committee, representing local stakeholders and the community. The administration signaled broad support for the committee’s vision and singled out a number of ideas that it agrees with, such as requiring developers to build improvements to infrastructure or public spaces in exchange for permission to con- struct bigger buildings. The administration also signaled support for a limited residential compo- LET US PLAN nent. This is the second crack at modernizing the office district after Garodnick and former City YOUR NEXT PARTY Council Speaker Christine Quinn effectively killed Employee Owned a Bloomberg-era proposal in late 2013. One of the biggest sticking points at the time was the role of CONTACT LAUREN PAGANO AT [email protected] OR 212-582-2057

BUCK ENNIS extra development rights that builders could pur-

FEBRUARY 29, 2016 | CRAIN’S NEW YORK BUSINESS | 11 20160229-NEWS--0012-NAT-CCI-CN_-- 2/26/2016 3:14 PM Page 1

AGENDA VIEWPOINTS

Tale of the tape on family leave HOW CUOMO’S PAID-LEAVE PLAN STACKS UP bodes well for the governor STATE DURATION BENEFIT WORKER COST California 6 weeks 55% of wage 0.9% of wages Why business groups will struggle to stop Cuomo’s proposal up to $1,104 New Jersey 6 weeks 66% of wage 0.09% of wages GOV. ANDREW paid leave for events such as the up to $604 up to $32,000 CUOMO spent last birth of a child or an illness in the Rhode Island 4 weeks 55% of wage 1.2% of wages week campaigning family by the time it is fully imple- up to $795 up to $64,200 for his proposals to mented in 2021. New York 12 weeks 60% of wage $1.40 a week* raise the minimum The Cuomo administration dis- up to $1,000* wage gradually to putes the business group’s asser- $15 and provide tion vehemently. Because family * Projected in 2021, when program is fully phased in Sources: Center for American Progress, Cuomo administration paid family leave as leave would operate through the GREG DAVID a package deal. But existing disability program, there the two are very would be no compliance problems, covered by the law, in large part MINIMUM WAGE different. Here are the key points the administration says. It also those employed by small business- AND PAID FAMILY LEAVE about paid family leave. argues that surveys of employers in es, have no right even to unpaid ● The workers themselves pay for it. California, New Jersey and Rhode time off. Levels of public support The minimum wage obviously Island show no increase in costs. In ● Paid family leave is very popular. $15 WAGE LEAVE increases employers’ costs. fact, employers save the wages they A recent Siena poll showed much Total 65% 80% Employees would pay for family don’t pay to workers on leave, and stronger support for Cuomo’s pro- leave through a $1.40 weekly use existing workers to cover the posal—among Democrats and Democrats 80% 87% deduction from their paychecks, absences. Republicans and in every region— Republicans 36% 69% piggybacking on the state’s The first point is a good one. The than for a $15 minimum wage. NYC 80% 85% temporary-disability system. By second is unproven because the ● What would the public benefit be? the way, all three states with this “take-up rate” of people using the One of the most worrisome Suburbs 60% 77% benefit—California, New Jersey and benefit isn’t very high in the other trends in the U.S. is the declining Upstate 52% 76% Rhode Island—do the same. states. number of women working, a Source: ● Business says compliance and finding tem- ● The current system is discriminatory. direction that is not evident in Siena poll porary employees will be burdensome. At the moment, only about 60% countries similar to ours. The con- The indirect costs are steep, of employees in the U.S. are covered sensus is that the falloff is primarily governor’s plan have a steep hill to claimed the Business Council of by the federal Family Leave Act, the result of a lack of family- climb in making a convincing case New York State in February in which requires 12 weeks of unpaid friendly policies, especially paid against it. announcing its opposition to the leave. Low-wage workers in partic- leave. governor’s plan. Cuomo’s proposal ular don’t use it because they can’t ● The bottom line. GREG DAVID blogs regularly at would provide up to 12 weeks of afford to. The 40% of workers not Business groups opposing the CrainsNewYork.com.

money. For-profit foreign schools This is really about Curb overseas med schools often pay hospitals handsomely for clinical clerkships. The schools pass money. For-profit NY training slots are going to second-rate students BY JO WIEDERHORN on the cost to their students, who foreign medical schools have a median debt of $292,000, ew York state’s 16 med- tors, New York’s medical schools more than $100,000 higher than the often pay hospitals ical schools, with nearly have expanded class sizes by 22%, median among U.S. medical-school handsomely for 10,500 enrolled stu- opened new institutions and branch graduates. Worse yet, many students, educate 10% of campuses in underserved commu- dents who enroll in foreign for- clinical clerkships Nthe nation’s physicians. Our med- nities, and increased minority profit medical schools don’t gradu- ical schools have long been at the enrollment by 31% to train ate. First-year attrition rates forefront of advancing diversity in a more diverse physician of more than 25% are not The Carnegie Foundation commis- our health care workforce—15% of workforce. But this expan- % uncommon (compared with sioned what became known as the medical students in the state are sion is threatened by the 3% at U.S. medical schools). Flexner Report, which found that from underrepresented minority overseas schools attempt- 53 Of the students who make it poor medical education was largely OF FOREIGN groups—and of educating physi- ing to buy the clerkship for-profit to graduation, only 53% will to blame. The report noted that cians to practice primary care and spots that New York’s med- med-school be accepted into a residency medical schools, a majority of serve in health care-shortage areas ical schools need for their grads get program, which is a prereq- which were for-profit at the time, throughout the state. The schools growing classes. residencies uisite to becoming a practic- had a “loose and lax apprenticeship also drive major discoveries that Foreign for-profit med- ing doctor. system that lacked defined stand- advance treatments and cure press- ical schools already occupy about Based on public data provided by ards” and seemed solely interested ing medical problems. half the clinical slots in New York for-profit Caribbean medical in making money. Major reforms to Yet the future of medical educa- hospitals with students who mostly schools, only about 25% to 30% of medical education ensued, includ- tion in New York hangs needlessly failed to gain acceptance to U.S. the students entering their classes ing the end of for-profit medical in the balance because foreign for- medical schools. It is hard to imag- will graduate on time and obtain a education. profit medical schools, predomi- ine the public-policy rationale for residency in the U.S., compared Let’s not go back to the bad old nantly in the Caribbean, are dis- allowing them to impair our with about 95% of students who days. Protecting New York’s clinical placing New York medical students schools’ ability to educate better- enter New York medical schools. clerkship slots will allow our stu- from third- and fourth-year clinical qualified students. With the increasingly limited num- dents to become the great doctors clerkships. These clerkships are New York already is an outlier in ber of clerkships and the growing we need them to be. where students learn how to be providing clinical clerkships to stu- demand, each spot should be put to doctors—to integrate their learned dents of foreign for-profit schools. the best use. Jo Wiederhorn is president and CEO of science with the art of diagnosis and Texas, for example, does not permit At the turn of the 20th century the Associated Medical Schools of New treatment. them access to clinical slots. there were serious concerns about York, which represents all 16 medical To meet the need for more doc- In many ways, this is really about the quality of American health care. schools in the state.

12 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 29, 2016 20160229-NEWS--0013-NAT-CCI-CN_-- 2/25/2016 7:03 PM Page 1

AGENDA VIEWPOINTS

A powerful woman slighted Also, the lowdown on mall subsidies; construction ban sought Heritage Healthcare Callous caption? which includes leaders from busi- Innovation Awards 2016 I was rather dismayed by the caption ness, labor, government and non- that accompanied a photograph from profit groups, initiated the request the Maimonides Medical Center ben- for state support of the project in efit (Snaps, Feb. 8). While the page 2013. Empire Outlets, with three Heritage Provider Network honors innovative led with a headline announcing that other Staten Island projects, were New York metropolitan area healthcare leaders with the Pamela Brier was honored for her the REDC’s highest priority at a time ﬁ rst annual Heritage Healthcare Innovation Awards. “distinguished medical career” and when that borough was struggling to then recounted her accomplish- recover from the devastation of This is your chance to nominate a colleague, ments, the photo below introduced Superstorm Sandy. These projects peer or organization. her as the wife of Peter Aschkenasy. were designed to stimulate economic Award Categories Aschkenasy appeared farther left in activity and job creation on Staten the photo, but why not identify him Island, which had lagged other bor- Heritage Innovation in Healthcare Delivery Award as the husband of the honoree? oughs in its rate of economic growth. I recognize this is a relatively Superstorm Sandy triggered Heritage Technology Innovator in Healthcare Award minor reference and, as a regular requirements for upgraded construc- Heritage Research Investigator in Translational Medicine Award reader, I generally commend Crain’s tion standards in coastal communi- on its inclusion of women business ties. As a result, the developer of Heritage Healthcare Leadership Award leaders. However, as an employment Empire Outlets was required to make Heritage Healthcare Organizational Leadership Award lawyer who regularly trains employ- significant public infrastructure ees on these types of issues, I am improvements to reinforce the North well aware that it is the persistence Shore coastline and protect the St. For more information, visit crainsnewyork.com/heritage of these types of minor slights and George community from storm surge NOMINATIONS NOW OPEN! micro-inequities that collectively and rising sea levels. The project also contribute to gender disparities in encompassed a new street to provide NYC Awards Luncheon: May 16, 2016 the workplace. I hope you will public access to the waterfront accept my criticism in that spirit and developments and upgrades to a that future captions will more Metropolitan Transportation appropriately recognize the accom- Authority facility. The REDC recom- plishments of those photographed. mended substantial public funding TRACEY I. LEVY to help cover the cost of public infrastructure improvements, not to CRAIN’S EDITOR JEREMY SMERD REPLIES: subsidize the retail project. Dear Tracey, The column cites unnamed I can understand why you feel the “economic-development experts” as 񡑅񡑖񡑒񡑢񡑉񡑡񡑘񡑙񡑀񡑈񡑒񡑙񡑢񡑕񡑐񡑒 way you do, especially if the caption critics of government support for this is taken out of context of the para- project. We doubt these experts were graph explaining Pamela Brier’s aware of the facts of this develop- 񡑕񡑠񡑀񡑆񡑘񡑡񡑀񡑃񡑔񡑕񡑖񡑑񡑤񡑠񡑀񡑇񡑖񡑉񡑣񡑁 accomplishments, which include ment, which is bringing an estimated 񡑦%∀−∀6.񡑀񡑰񡑀(+/񡑀−&!&∗∃񡑀+∗񡑀/%∀񡑀,−+,∀−񡑀)񡑰&∗/∀∗񡑰∗ ∀񡑀 being a Crain’s Most Powerful $180 million in direct economic bene- +#񡑀4+0−񡑀∀(∀1񡑰/+−.񡑆񡑀񡑦%∀񡑀.񡑰#∀/4񡑀񡑁񡑀 +)#+−/񡑀+#񡑀4+0−񡑀 Woman and a 2015 Crain’s Hall of fits during construction alone, and ,񡑰..∀∗∃∀−.񡑆񡑀񡑦%∀񡑀,∀񡑰 ∀񡑀+#񡑀)&∗!񡑀/%񡑰/񡑀 +)∀.񡑀 Fame inductee. creating more than 2,500 jobs. 2&/%񡑀−∀(&񡑰񡑱(∀񡑀+,∀−񡑰/&+∗񡑀񡑰∗!񡑀񡑰1+&!񡑰∗ ∀񡑀+#񡑀 We debated the caption’s phras- WINSTON FISHER, chairman ∀)∀−∃∀∗ &∀.񡑆񡑀񡑣+/∀∗/&񡑰((4񡑀.&∃∗&#& 񡑰∗/񡑀 +./ .񡑰1&∗∃.񡑆񡑦%񡑰/6.񡑀2%4񡑀4+0񡑀∗∀∀!񡑀񡑔񡑁񡑔񡑀񡑕(∀1񡑰/+−6.񡑀 STUART APPELBAUM, CAROL CONSLATO, ing. Our logic was predicated solely %&∃%(4񡑅/−񡑰&∗∀!񡑀,−+#∀..&+∗񡑰(.񡑄񡑀/+񡑀 +∗!0 /񡑀4+0−񡑀 on the order of people in the photo. STEVE HINDY, KEN KNUCKLES )+∗/%(4񡑀∀(∀1񡑰/+−񡑀)񡑰&∗/∀∗񡑰∗ ∀񡑀񡑰∗!񡑀)񡑰∋∀񡑀 In groups of more than two, we and KATHRYN WYLDE, members ∀3,∀−/񡑀−∀ +))∀∗!񡑰/&+∗.񡑀/+񡑀%∀(,񡑀4+0񡑀./∀∀− usually identify individuals from left REDC executive committee (∀񡑰−񡑀+#񡑀,−+񡑱(∀).񡑆񡑔񡑁񡑔6.񡑀2+−∋#+− ∀񡑀∀!0 񡑰/&+∗ to right. We felt that “Peter 񡑰∗!񡑀 ∀−/&#& 񡑰/&+∗.񡑀&∗ (0!∀񡑑 Prison isn’t sufficient Aschkenasy, the husband of Pamela 5񡑀񡑈񡑇񡑀񡑰∗!񡑀񡑉񡑇񡑅%+0−񡑀񡑢񡑥񡑗񡑒񡑀 ∀−/&#&񡑰/&+∗. Brier” would not have identified the Building Trades Employers’ 5񡑀񡑤0񡑰(&#&∀!񡑀񡑕(∀1񡑰/+−񡑀񡑘∗.,∀ /+−.񡑀񡑂񡑤񡑕񡑘񡑃񡑀 woman next to him as Pamela Brier. Association contractors have zero tol- 񡑓∀−/&#& 񡑰/&+∗.񡑀/%−+0∃%񡑀񡑡񡑒񡑕񡑥񡑒 5񡑀񡑓∀−/&#&∀!񡑀񡑕(∀1񡑰/+−񡑀񡑦∀ %∗& &񡑰∗.񡑀񡑂񡑓񡑕񡑦񡑃񡑀 The phrasing we used, “Peter erance for anyone who jeopardizes the 񡑰 −∀!&/∀!񡑀񡑱4񡑀񡑒񡑡񡑥񡑘񡑀񡑁񡑀񡑘񡑥񡑢 Aschkenasy with his wife, Pamela safety of workers or the public for 5񡑀񡑀񡑡񡑩񡑀񡑥/񡑰/∀񡑀񡑁񡑀񡑖∀!∀−񡑰(񡑀񡑔∀,/񡑀+#񡑀񡑙񡑰񡑱+− Brier,” simply explained his rela- personal financial gain. Manhattan 񡑰,,−+1∀!񡑀񡑒,,−∀∗/& ∀.%&,񡑀񡑣−+∃−񡑰) tionship with the gala honoree. District Attorney Cy Vance should be 5񡑀񡑙& ∀∗.∀!񡑀񡑠񡑰./∀−񡑀񡑕(∀ /−& &񡑰∗. 5񡑀񡑓∀−/&#&∀!񡑀񡑕!0 񡑰/&+∗񡑀񡑘∗./−0 /+−. We don’t believe a woman’s value applauded for the swift, strong action 5񡑀񡑖񡑰 /+−4񡑅/−񡑰&∗∀!񡑀񡑘∗./񡑰((∀−. stems from being the wife of her he took to send a crooked so-called 5񡑀񡑖0((񡑅/&)∀񡑀񡑨+−∋,(񡑰 ∀񡑀񡑥񡑰#∀/4񡑀񡑒0!&/+−.񡑀 husband, and we’re aware of how consultant to prison (“Construction 񡑁񡑀񡑦−񡑰&∗∀−. 5񡑀񡑙& ∀∗.∀!񡑀񡑓&/4񡑀+#񡑀񡑡∀2񡑀񡑩+−∋񡑀񡑘∗.,∀ /+−.񡑀 words can convey hidden agendas safety consultant is going to the slam- 񡑁񡑀񡑒∃∀∗ 4񡑀񡑔&−∀ /+−. and unconscious bias. mer,” CrainsNewYork.com). 񡑣(0.񡑄񡑀񡑰/񡑀񡑔񡑁񡑔񡑀2∀񡑀%񡑰1∀񡑀+0−񡑀+2∗񡑄񡑀&∗񡑅%+0.∀񡑀񡑧&+(񡑰/&+∗.񡑀񡑁񡑀񡑦∀./&∗∃񡑀!&1&.&+∗񡑀 Let’s take the DA’s actions a step About those subsidies /%񡑰/񡑀2&((񡑀񡑰..&./񡑀4+0񡑀2&/%񡑀./񡑰/∀񡑅)񡑰∗!񡑰/∀!񡑀񡑓񡑰/∀∃+−4񡑀񡑈񡑀񡑁񡑀񡑐񡑀/∀./&∗∃񡑆񡑀 further and permanently bar this 񡑄񡑕񡑠񡑐񡑘񡑢񡑒񡑙񡑀񡑡񡑔񡑒񡑀񡑄񡑂񡑄񡑀񡑄񡑕񡑓񡑓񡑒񡑙񡑒񡑗񡑐񡑒񡑁 Greg David’s column “Why enor- person from ever working in the mous subsidies for a Staten Island construction industry again under mall?” (CrainsNewYork.com) reflects any company name. He is exactly the a misunderstanding of how and why kind of bad actor who gives the public funds were allocated to the hardworking men and women in Empire Outlets project. Here’s the construction a bad name. 񡑡񡑡񡑡񡑁񡑐񡑐񡑑񡑔񡑑񡑠񡑈񡑙񡑗񡑘񡑁񡑉񡑗񡑕 full story. LOUIS J. COLETTI 񡑆񡑂񡑄񡑁񡑃񡑄񡑅񡑁񡑄񡑃񡑄񡑄񡑀񡑢񡑀񡑓񡑖񡑒񡑗񡑇񡑐񡑐񡑑񡑔񡑑񡑠񡑈񡑙񡑗񡑘񡑁񡑉񡑗񡑕 The New York City Regional President and CEO Economic Development Council, Building Trades Employers’ Association

FEBRUARY 29, 2016 | CRAIN’S NEW YORK BUSINESS | 13 20160229-NEWS--0014-NAT-CCI-CN_-- 2/25/2016 7:02 PM Page 1

AGENDA THE LIST COSTAR’S TOP MANHATTAN OFFICE LEASES Biggest Manhattan transactions in 2015, ranked by square feet

ADDRESS SQUARE FEET TENANT TENANT REPRESENTATIVE(S) LANDLORD/SUBLANDLORD LANDLORD/SUBLANDLORD REPRESENTATIVE(S) SUBMARKET 1 400 W. 33rd St.1 538,321 Skadden Arps Slate JLL Brookfield Office Properties Inc. Cushman & Wakefield Inc. Penn Plaza/Garment district Meagher & Flom 2 1675 Broadway2 506,009 Publicis Groupe Byrnam Wood Rudin Management Co. Rudin Management Co. Columbus Circle 3 200 Park Ave.1 495,551 MetLife Inc. Cushman & Wakefield Inc. Tishman Speyer Tishman Speyer Grand Central 4 750 Seventh Ave.3 414,759 Morgan Stanley CBRE Fosterlane Management Corp. Hines Times Square 5 919 Third Ave.1 340,428 Bloomberg CBRE SL Green Realty Corp. SL Green Realty Corp.; CBRE Plaza district 6 237 Park Ave.3 288,793 J. Walter Thompson CBRE RXR Realty RXR Realty Grand Central 7 787 Eleventh Ave.1 264,453 BiCom NY/Nissan CBRE; Newmark Grubb Georgetown Co. CBRE Columbus Circle North America Inc. Knight Frank 8 1633 Broadway1 260,829 Morgan Stanley CBRE Paramount Group Inc. Paramount Group Inc.; CBRE Columbus Circle 9 85 Broad St.1 234,879 WeWork Direct deal Beacon Capital Partners JLL Financial district 10 1345 Sixth Ave.3 200,720 Fortress Investment Group Colliers International J.P.Morgan Investment CBRE; Fisher Brothers Management Co. Columbus Circle Management Inc. 11 1251 Sixth Ave.3 199,139 DLA Piper Newmark Grubb Knight Frank Mitsui Fudosan International Newmark Grubb Knight Frank Times Square 12 501 W. 30th St.1 193,306 Boston Consulting Group CBRE Related Cos. CBRE Penn Plaza/Garment district 13 55 Water St.2 191,318 Teachers' Retirement Savills Studley Retirement Systems of Alabama CBRE Financial district System of NYC 14 1460 Broadway1 178,441 WeWork CBRE Swig Co. Meringoff Properties Inc. Penn Plaza/Garment district 15 200 Liberty St.1 172,352 Associated Press Savills Studley Brookfield Office Properties Inc. JLL; Brookfield Office Properties Inc. World Trade Center 16 3 World Trade Center4 171,495 GroupM CBRE Silverstein Properties Inc. CBRE World Trade Center 17 85 10th Ave.3 171,355 General Services Direct deal Related Cos.; Vornado Realty Trust Related Cos.; Vornado Realty Trust Chelsea Administration 18 1 N. End Ave.1 168,873 KCG Holdings Inc. JLL Brookfield Office Properties Inc. JLL; Brookfield Office Properties Inc. World Trade Center 19 395 Hudson St.1 152,670 WebMD Health Corp. Newmark Grubb Knight Frank New York District Council of Carpenters JLL Hudson Square Pension Fund 20 855 Sixth Ave.1 147,954 Nike Inc. Savills Studley Durst Organization Durst Organization Penn Plaza/Garment district 21 330 W. 34th St.1 144,987 Foot Locker Inc. JLL Vornado Realty Trust Vornado Realty Trust Penn Plaza/Garment district 22 240 W. 40th St.3 143,800 Donna Karan Co. Savills Studley Olmstead Properties Olmstead Properties Penn Plaza/Garment district 23 450 W. 33rd St.1 139,332 Markit Group Ltd. Savills Studley Brookfield Office Properties Inc. Cushman & Wakefield Inc. Penn Plaza/Garment district 24 315 W. 36th St.1 136,118 WeWork Hayes Realty Services SL Green Realty Corp. JLL Penn Plaza/Garment district 25 601 W. 26th St.1 135,170 Verizon New York Newmark Grubb Knight Frank RXR Realty RXR Realty Chelsea 26 1120 Sixth Ave.1 128,462 Indeed Inc. JLL Edison Properties Cushman & Wakefield Inc. Times Square 27 280 Park Ave.1 126,516 Franklin Templeton CBRE Vornado Realty Trust; SL Green CBRE Plaza district Realty Corp. 28 350 Fifth Ave.4 125,612 LinkedIn Corp. CBRE Empire State Realty Trust Newmark Grubb Knight Frank; Penn Plaza/Garment district Empire State Realty Trust 29 75 Varick St.2 121,240 Horizon Media Newmark Grubb Knight Frank Trinity Church Real Estate Trinity Church Real Estate Hudson Square 30 601 Lexington Ave.3 119,956 Citadel Investment Group CBRE Boston Properties Inc. JLL Plaza district 31 1700 Broadway1 119,485 Gensler CBRE Ruben Cos. Newmark Grubb Knight Frank Columbus Circle 32 120 Broadway1 115,011 New York City Department Direct deal Silverstein Properties Inc. Silverstein Properties Inc. Financial district of City Planning 33 1133 Sixth Ave.3 114,767 Bank of America CBRE Durst Organization Durst Organization Times Square 34 909 Third Ave.1 112,300 Interpublic Group of Cos. JLL Vornado Realty Trust CBRE Plaza district 35 1301 Sixth Ave.1 109,863 Norton Rose Fulbright Newmark Grubb Knight Frank Paramount Group Inc. Paramount Group Inc.; Newmark Grubb Columbus Circle Knight Frank 36 300 Park Ave.1 109,631 WeWork Colliers International Colgate-Palmolive Colliers International Plaza district 37 1440 Broadway1 104,525 Ford Foundation Newmark Grubb Knight Frank ARCNY NYREIT Newmark Grubb Knight Frank Penn Plaza/Garment district 38 1 Park Ave.1 104,351 New York University Cushman & Wakefield Inc. Vornado Realty Trust Vornado Realty Trust Murray Hill 39 125 Park Ave.2 103,515 Pandora Media Inc. CBRE SL Green Realty Corp. Newmark Grubb Knight Frank Grand Central 40 1 State St.3 103,484 Ambac Financial Group Inc. Newmark Grubb Knight Frank ACTA Realty ACTA Realty Financial district 41 28 Liberty St.1 101,958 Ironshore Holdings U.S. Inc. Newmark Grubb Knight Frank Fosun International Ltd. Fosun International Ltd. Financial district 42 101 Park Ave.4 100,200 Morgan Lewis & Bockius JLL H.J. Kalikow & Co. Cushman & Wakefield Inc. Grand Central 43 888 Seventh Ave.2 99,943 TPG Global Newmark Grubb Knight Frank Vornado Realty Trust Vornado Realty Trust Columbus Circle 44 280 Park Ave.1 98,740 PJT Partners Savills Studley Vornado Realty Trust; SL Green CBRE Plaza district Realty Corp. 45 33 Irving Place1 96,000 WeWork Direct deal Newmark Holdings Newmark Grubb Knight Frank Gramercy Park 46 95 Morton St.1 95,052 PayPal CBRE Brickman Associates Brickman Associates Hudson Square 47 2322 Third Ave.3 94,749 City of New York Cushman & Wakefield Inc.; Jack Resnick & Sons Jack Resnick & Sons Harlem/North Manhattan JRT 48 100 W. 33rd St.4 94,189 Interpublic Group of Cos. JLL Vornado Realty Trust Vornado Realty Trust Penn Plaza/Garment district 49 101 Park Ave.3 91,482 Curtis Mallet-Prevost Colt Newmark Grubb Knight Frank H.J. Kalikow & Co. Cushman & Wakefield Inc. Grand Central & Mosle 50 200 Park Ave.3 91,210 Mitsui & Co. Cushman & Wakefield Inc. Tishman Speyer Tishman Speyer Grand Central

The list includes leases with terms of more than two years. 1-New lease. 2-Renewal and expansion. 3-Renewal. 4-Expansion. CoStar Group Inc., a provider of information services to the U.S. and U.K. commercial real estate industries, offers customers the most comprehensive verified database of commercial real estate information in the U.S. and U.K. For more information, visit costar.com or call (877) 7-COSTAR.

14 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 29, 2016 CUSHMAN & WAKEFIELD. BUILT TO LEAD.

Cushman & Wakeﬁ eld is a leader in the global real estate marketplace, delivering value to our clients in New York and around the world.

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$191 billion in transactions.

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cushmanwakeﬁ eld.com 20160229-NEWS--0016-NAT-CCI-CN_-- 2/26/20164:23PMPage1 REAL ESTATE

TOM FOTY 16 | RI’ E OKBUSINESS YORK CRAIN’S NEW | RIKERS ISLAND | ERAY2,2016 29, FEBRUARY IESISLAND RIKERS Lifefor New M o i p d o p e v o i a n r s t g u

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20160229-NEWS--0017-NAT-CCI-CN_-- 2/26/2016 3:28 PM Page 1

ome stroll with us along 413 acres of time of his arrest, who spent three years at city-owned waterfront property. Rikers, most of it in solitary confinement, Don’t mind the incessant roar of awaiting trial for allegedly stealing a back- planes and the stench of the mud- pack. His story and similar cases of abuse flat at low tide. Check out that have bolstered calls for a shutdown. The breathtaking skyline view. city accepted federal oversight of the From Gov. Andrew Cuomo to jail in a settlement last year. Cthe New York Times editorial board, heavyweights Yes, the cost of moving inmates are lining up to slam the door once and for all on the out and building new borough lock- Rikers Island jail complex. City Council Speaker ups would reach billions of dollars. Melissa Mark-Viverito recently formed a commis- A move would also mean aban- sion, led by the state’s former top judge, to study a doning a nearly $600 million path to closing Rikers. facility on Rikers that broke So Crain’s asked architects, advocates, planners ground in 2013. Some experts say ISLAND VILLAGE: and dreamers to look at the island with new eyes. If any new money should go to Curtis + Ginsberg the jail were to disappear, what could take its place? improving the jails on the island, Architects proposes constructing 80 city The island is about six-tenths of a square mile, adding programming and mental- blocks dotted with parks, most of it spongy landfill. It faces Hunts Point in the health services. Closing the jail schools and a mix of support- Bronx on its north side, Port Morris to the west, would also depend on further ive, affordable and market-rate housing for 65,000 residents. College Point to the east, and connects via bridge to reducing the number of prisoners, East Elmhurst to the south. Its southern shore is down more than 2,000 since 2012. within spitting distance of LaGuardia Airport. “The potential of that site is enormous,” Some suggested capitalizing on Rikers’ proxim- said A. Eugene Kohn, chairman of architecture and need replacing and the walls leak heat “like a ity to LaGuardia and using it to expand runways. planning firm Kohn Pedersen Fox. “It would give the sieve,” Horn said. city great growth room. It could be phenomenal.” Replacements for Rikers could be built near Criminal-justice activist Glenn Martin, who was existing facilities in Brooklyn, Queens and the first incarcerated on the island as a teenager and spent Bronx. And a jail could be built on Staten Island, a year there at the age of 23, wants those who endured which currently doesn’t have one. These would- the jail’s darkest days to get a piece of any possible n’t be popular, but then again, there’s been a jail Rikers renaissance. near the courthouse in downtown Brooklyn since “If billions are to be made,” he said, “some of those 1957, and its presence hasn’t interfered with the profits should be reinvested in the communities long area’s economic revival. suffering from the abuses at Rikers.” Before any inmates are moved, Rikers’ population must shrink further. Mentally ill inmates who cycle in and out are better served by health-care Money saved, money to be made professionals than jailers. Lower bail requirements There are sound humanitarian reasons for the could help address one of Rikers’ most maddening city to shut Rikers Island. The economic rationale is problems: thousands of detainees who linger also compelling. because they can’t afford to pay their way out Rikers sucks up 80% of the city Correction before their case is heard in court. Department’s $1.2 billion budget, which makes Once the jail is closed, the opportunities to sense, considering that 80% is its share of the city’s develop the island are myriad, given the right CRIMINAL-JUSTICE advocate Glenn Martin 10,000 residents in jail at any given time. But the amount of investment. “To make money you need island location imposes hefty costs that could dis- to spend money, and this might be money well appear if the jail were closed and inmates moved to spent,” Kohn said. the boroughs. Rikers has its limitations, of course. It’s right The costs begin with the security checkpoint on next to LaGuardia Airport, and the bridge between Others envisioned a new community complete with the Queens side of the bridge leading to the jail com- the island and Queens crosses a jet-fuel dump and affordable housing and schools. Some said Rikers is plex. There’s another checkpoint on the other side, a mudflat that reeks when the tide goes out. But too inaccessible for residential use; others say its then visitors must take a bus to the jailhouse they skyline views are spectacular. lack of transport options make it a great location for want. For staffers, contractors and lawyers, there’s “I remember leaving Rikers on summer necessities like waste-treatment plants that are a second bus that operates 24 hours. Once the facil- evenings and stopping to watch the sun set as the unwanted elsewhere in the city. ity has been reached, visitors must pass a third city lights came on,” Horn said. “It’s one of the Like Robben Island in South Africa and San checkpoint. best views around.” Francisco’s Alcatraz, Rikers Island is difficult to get The fleet of 30 buses with armed guards taking to—once a prime reason to hold people in captivity 1,500 inmates a day to courthouses across five boroughs costs taxpay- Home sweet Rikers ers about $300 mil- Rikers Island could hold as many as 25,000 “IF BILLIONS ARE TO BE MADE, SOME OF lion per year, said new apartments—a sizable chunk of the 80,000 former correction new affordable units and 160,000 market-rate THOSE PROFITS SHOULD BE INVESTED IN commissioner homes that City Hall wants built by 2024. THE COMMUNITIES LONG SUFFERING Martin Horn, now a “I’d like to see a community built that would lecturer at the John address the city’s needs for affordable and sup- FROM THE ABUSES ATRIKERS” Jay College of portive housing—including people with [crimi- Criminal Justice. nal] records,” said JoAnne Page, chief executive “A big part of of the Fortune Society, a nonprofit dedicated to Rikers’ budget has reforming the criminal justice system. there. Those former penal colonies are now tourist nothing to do with maintaining the jail,” Horn said. That community could be as large as 65,000 peo- attractions, and remoteness has become one of “Close it and those costs go away.” ple, or roughly on par with the West Village, Rikers’ biggest disadvantages. Housing its inmates elsewhere in the city would according to Ginsberg Architects, which drew up a Because 85% of its detainees are pre- or mid- require building new jails. That’s no trivial matter, plan for a residential Rikers island at the behest of trial, they must be transported to the boroughs for considering a 1,600-person jail can cost $600 mil- Crain’s. The plan sticks to the city’s grid system, every court date. When they are late, or a hearing lion, Horn said, or $3 billion for five new jails across with 80 blocks of homes and businesses, several gets pushed back, court proceedings get delayed the city. Savings would come from abandoning the schools and 80 acres of park space. Lying in the and stays grow longer. 40-year-old buildings constructed on ever-shift- flight path of LaGuardia limits heights on the island,

BUCK ENNIS,ARCHITECTS + GINSBERG CURTIS That was the case for Kalief Browder, 16 at the ing landfill. Inside Rikers’ jails, locks frequently CONTINUED ON PAGE 18

FEBRUARY 29, 2016 | CRAIN’S NEW YORK BUSINESS | 17 20160229-NEWS--0018,0019-NAT-CCI-CN_-- 2/26/2016 3:13 PM Page 1

REAL ESTATE | RIKERS ISLAND

so the architects envision buildings no taller than 100 feet, and a total construction cost of about $7 billion for the apartments, before any infrastructure improvements the island would need. A large park could act as a buffer between the housing and the runways of LaGuardia Airport. A new vehicular bridge could connect the island to Astoria and carry an extension of Mayor Bill de Blasio’s proposed Queens-Brooklyn streetcar. A BACK OFFICE: Claire Weisz of ferry could run to Manhattan and to Hunts Point in WXY imagines “LaGuardia the Bronx. Yards,” a hub for industrial Jonathan Rose, head of affordable-housing workspace and city services. She recommends moving builder Jonathan Rose Cos., said 40,000 people nonessential offices from could live on Rikers if single-person units and sup- 1 Police Plaza to the island. portive housing were prioritized. An alternative- sentencing facility on Rikers would be the best way to counteract the jail complex’s brutal history, he added. “The Rikers Island compound should become a transformative healing space that policed and incarcerated communities of color can freely access to do restorative work needed to mend the harm that [the jail] created,” said Sasha Alexander of the Sylvia Rivera Law Project, a nonprofit spe- cializing in legal advice for the transgender community. Still, turning Rikers into a residential community faces some serious obstacles, even if future tenants would be willing to trade cheaper rent for the constant noise of airplanes taking off from and subsidize construction. While City Hall could by 250 feet of East River at their closest point—still landing at LaGuardia. require affordable residences in return, too much close enough to consider extending LaGuardia of it might concentrate low- there. income New Yorkers in an iso- Venturi’s plan would expand LaGuardia into a “I WAS FLYING INTO LAGUARDIA, lated location—an echo of the Newark-size international airport by annexing AND I COULDN’T BELIEVE THAT 1950s, when poor and minority Rikers and building runways and concourses. residents were effectively seg- “Once you think of Rikers as vacant property, RIKERS WAS ONLY200 FEETAWAY” regated into public housing it’s crazy not to see [it] as part of the idea of how developments. LaGuardia can be improved,” he said. LaGuardia “I don’t think the location or opened in 1939, and its limited capacity has long To start with, nearly three-quarters of Rikers proximity to the airport would preclude you from been a concern. Short runways cause delays when Island was formed by dumping garbage into the getting $2,300 a month,” said David Schwartz, a it rains or snows, and safety concerns require more water—meaning that the ground could be unsta- principal at development firm Slate Property time between flights, Venturi said. ble and potentially too contaminated for resi- Group. “But you would have to make it reason- He would lengthen the 7,000-foot runways to dential and recreational uses without remedia- able to get to and build the right kind of ameni- more than 10,000 feet, on par with those at tion. The expense of removing toxic soil or ties to make it a place where people would want Newark and JFK. He would nearly double the ensuring that buildings don’t sink, by tapping to be.” number of gates, and size them to accommodate into bedrock, could push construction costs today’s larger planes. This would require filling in above a reasonable rate of $225 per square foot. the East River’s Rikers Island Channel. That would The island also sits across the bay from two A bigger, better LaGuardia Airport require a lengthy environmental review. sewer overflow valves, which dump millions of “I was flying into LaGuardia, and I couldn’t LaGuardia faces another long-term problem: It gallons of raw sewage into the bay when it rains. believe that Rikers was only 200 feet away,” said is sinking. If gates and runways opened on Rikers, If developers can’t charge enough rent—at Jim Venturi, a self-taught urban planner who has Venturi said, work could be done to elevate least $2,300 for a new two-bedroom apartment, devised a strategy to use Rikers Island to overhaul LaGuardia’s current facilities without shutting using standard construction costs—then they transit in the city. down the airport. won’t build. Alternatively, the city might need to The jail and the airport are actually separated Last year, Cuomo announced a $4 billion redesign of the airport, creating a single terminal that would free up taxiing space for planes in a bid to reduce delays. Venturi said the city should dream bigger. His grand plan would take the Long Island Rail Road through RIKERS FLYLAND: Jim Penn Station to a new terminal and rail hub in Port Venturi’s ReThinkNYC plan Morris in the Bronx, and connect it to Metro-North would make an enlarged LaGuardia a regional on an abandoned rail line. An underwater mono- transportation hub. rail would move passengers from Port Morris to LaGuardia. Along the way, he’d move Manhattan’s Javits Convention Center to the Aqueduct Raceway near JFK, and Madison Square Garden to a new office hub and park at Sunnyside Yards in Queens. He figures that the full plan for a giant East River transit and commerce hub with Rikers at its center would cost $50 billion. Since Cuomo announced his support for closing the jail, Venturi has hoped his plan will get a second look. “The idea of closing Rikers was considered completely impossible,” he said. “All of a sud- den, things that we were told were impossible are now

RETHINKNYC TEAM, RETHINKNYC W X Y + URBAN, ARCHITECTURE GETTY IMAGES being seriously considered.”

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New manufacturing hub workers, including digital manufacturing at the is a considerably more affordable option, If Rikers Island were a manufacturing district, it university partnership UI Labs, and the William Schwartz said, and it piggybacks nicely with the likely would house more jobs than it currently Wrigley Jr. Co.’s research and development labora- mayor’s plan to build a streetcar line connecting houses inmates. At 413 acres, Rikers is larger than tories. Queens and Brooklyn. The chief question would the 300-acre Brooklyn Navy Yard, which contains High land prices are one reason manufacturers be whether the bridge that connects Rikers to 8,000 jobs and has a waiting list of companies look- are fleeing New York. If the city leases buildable Queens is strong enough to support streetcars. ing to move in. land on Rikers cheaply enough, developers could A proposal by Magnusson Architecture and “There’s definitely a shortage of industrial space build manufacturing facilities at rents that local Planning would send a streetcar across a new in the city of New York,” said Aron Kurlander, firms could afford, said Adam Freidman, executive bridge to the island and connect it to Hunts Point director of the business services group at the director of the Pratt Center for Community in the north. Greater Jamaica Development Corp. in Queens, Development in Brooklyn. “If you were able to BRIDGES: A bridge connecting Rikers to the which oversees the industrial zone near JFK air- bring it in at $15 a square foot, the answer is yes, Bronx could run west to the Port Morris neigh- port. “We just don’t have enough of it to go people would flock there,” he said. borhood, putting travelers near the 6 subway around.” line, and might cost at least $750 million, Two of Rikers Island’s big housing drawbacks Schwartz said. A shorter bridge could be built to don’t matter to manufacturers: Neither the noise Getting there and back Hunts Point. A mile-long on-ramp could also from LaGuardia nor the airport’s imposed height Linking Rikers Island to the city’s transit net- connect Rikers to the Grand Central Parkway in restrictions would limit their activity. Proximity to work could be costly, depending on how much Queens. the airport could be an attraction, industrial- housing or manufacturing were put on the island. BUSES: The Q100 is the only city bus line serv- development experts say. SUBWAY: Extending the N train would do more ing Rikers, daily carrying 4,200 passengers who In Kurlander’s area, some manufacturers than anything else to integrate Rikers into the either work on the island or are visiting inmates. directly serve JFK, including two companies that city, but it would be the most expensive option by More service would be needed if people who make food for air travel and that together employ far. The Metropolitan Transportation Authority aren’t locked up are going to live on the island. about 600 people. wouldn’t offer figures, but back in 1999 the This is the only transit option that wouldn’t For the island to become a viable manufacturing agency proposed to extend the N from Astoria, require significant new construction. spot, it would need another bridge for trucks to Queens, to LaGuardia Airport. The estimated cost FERRY: Work now underway to expand ferry bring in raw materials and to transport finished at the time: $645 million. Extending the N to service between Manhattan and the Bronx’s products out. “You’re really talking about trucks in Rikers would cost considerably more, said trans- Soundview neighborhood could add a stop at and trucks out all day long,” said Leah Archibald of portation engineer Sam Schwartz, who helped Rikers for less than $10 million, according to a Evergreen Exchange, which represents the manu- design the Air Train to Kennedy airport. “It would ferry company executive who didn’t want to be facturing sector in North Brooklyn. “The impor- be prohibitive,” he said, because the tracks identified. tance of transportation issues cannot be overesti- would have to be built over water and make two Solving the transportation problem opens up mated.” turns from the current terminus in Astoria, which tremendous development possibilities, whether Chicago’s Goose Island, more centrally located could require demolishing apartment or com- it’s a high-tech campus, convention center or a there than Rikers is here, could serve as a model. In mercial buildings. A more direct subway route cultural district. 1990, that industrial area was in decline, with would pass over land owned by Con Edison. The “I could see moving the convention center about 18 companies and 1,000 employees on 146 LaGuardia project was scrapped in 2003 amid there because [Javits] is too small for big shows acres, according to Chicago’s Department of post-9/11 budget constraints and fierce opposi- and too big for small shows,” said Anthony Planning and Development. After Chicago created tion from Queens residents who didn’t want their Mosellie, a principal at KPF. “And then you a planned manufacturing district and improved neighborhoods turned into construction zones, unlock all of that remaining real estate on the infrastructure as the tax base rose, Goose Island or elevated trains rumbling past their windows. West Side of Manhattan.” grew to house more than 40 companies and 5,000 STREETCAR: At about $100 million per mile, this CONTINUED ON PAGE 20

EVERYTHING ISLAND: Magnus- son Architecture and Planning sees Rikers as an urban smorgasbord. Housing is set farthest from LaGuardia.

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PERKINS + WILL, FXFOWLE 20 | RI’ E OKBUSINESS YORK CRAIN’S NEW Parks, baby,Parks, parks nature sanctuarywithanesting reserveforthe LaGuardia Airport.Awetland developmentanda New York”signseenbypassengers arrivingat generate enoughenergytolighta“Welcome tionary exercisebikesthat,whenpedaled,would employ formerinmates,avelodromeandsta- a bicyclemanufacturingincubatortotrainand tion centerswithadaptedbikesforthedisabled, Rikers intoBikersIsland,includingrehabilita- amount ofspaceyou’vesetaside.” lar, becausepavedparkingwilluseuphalfthe an attractivewaytogettherethatisnonvehicu- “Transportation andaccessarevital—youneed ning fromtheBronxthatopenedlastyear. street-level pedestrianandbicyclebridgerun- key toitssuccess,Bodensaid,notinganew Queens, saiditsdirector,AimeeBoden. users fromupperManhattan,theBronxand dium, andmeadowsmarshlandsthatbring courts, agolfdrivingrange,trackandfieldsta- past quarter-century,withballfields,tennis west ofRikers,wasreclaimedasaparkduringthe Board 1. Khuzami, parkschairofQueensCommunity cant amountofgreenspace,”saidRichard “Whatever’s doneinthereshouldhaveasignifi- grounds. Andtherearenopublicsportsfields. Elmhurst areasphaltorhard-surfaceplay- ern Queens.” completely unmetdemand,especiallyinnorth- create sportsfieldsorsyntheticturf—whichisa people topicnicandflykites,lateryoucould “First, youclearthelandtohaveopenspacefor 2012. “Youcanbuildtheminstages,”hesaid. New York’sparkscommissionerfrom2002to to reclaimRikersIsland,saidAdrianBenepe, REAL ESTATE PHENOMENAL” COULD BE IT GROWTH ROOM. GREAT ENORMOUS. SITEIS OFTHAT “THE POTENTIAL and well-being. promoting health mission of oasis” witha able, landscaped Island, a“sustain- presents Bikers PERKINS+WILL Architecture firmPerkins+Willwouldturn Ensuring plentyofaccesstoRandall’swasa Randall’s Island,lessthanamiletothesouth- Many oftheparksinnearbyAstoriaandEast Parks wouldbethecheapestandquickestway R E S H A A N C N B E A C N I T L T U T I U T E R A A R E R T

| I Y O N RIKERS ISLAND M ITWOULD GIVE THE CITY ITWOULD A N F | U A ERAY2,2016 29, FEBRUARY F C A I C L T I T U Y R I N G to eliminatelandfillwasteby2030. recycling andcompostingoperations,whichaim upset, RikerscouldhelpCityHallexpandits without inmatesorresidentialcommunitiesto complex intofertilizereverymonth.Inafuture food scrapsandpackagingwastefromthejail ity onRikersIslandhasbeenturning178tonsof parks, andforsome20years,acompostingfacil- R E B S A V T R E A L S U O

R A D A N R N D O T M S ture inseveralcity flight paths. from theairport’s keep thebirdsaway end oftheislandwould population onthefar local Canadagoose E Composting isafea- A M P H I T H E A T E R place ofhope?” “What ifweturnedaplaceofpainanddamageinto penal colony,”saidtheFortuneSociety’sPage. Liberty andyouseeahopefulcommunityinsteadof on Randall’sIsland. seawalls, naturalbeaches,rockshoresandmarshland ization hasspent$270million,muchofittorestore be expensive,Bodensaid.Overtheyears,herorgan- need tobeshoredupagainstthecurrents,whichcan Penitentiary.” of trustiesfromthenearbyRikers experienced gardenerssupplementedbyworkgangs whichisoperatedbya[department]crewof nursery described ina1964ParksDepartmentreportas“a island’s now-vanishedmunicipaltreefarm, city,” saidJackRobbins,aprincipalatthefirm. ing neededpower,foodandwastedisposalforthe ratory forsustainabletechnologieswhileprovid- housing. education centercouldworkintandemwith park alsofeaturingasolar-energyplant,farmand 60 acres,justone-seventhofRikers’totalarea. sanitation commissioner.Aplantcouldbebuilton Steisel, anenvironmentalconsultantandformer one wantstheminhisbackyard,saidNorman ically needsixto10acresofspaceeach,andno waste intogasandfertilizereveryday.Theytyp- achs canturnabout500tonsoffoodandplant plants onRikers.Theseenormousartificialstom- the fiveboroughsbybuildinganaerobicdigestion organic wastegenerateddailybyhouseholdsin could evencompostnearlyallofthe3,000tons for thecity’sDepartmentofSanitation.Thecity Loops andisaformerdirectorofpolicyplanning runs environmentalurban-planningfirmClosed you wouldthinkof,”saidBenjaminMiller,who drive trucksstraightin—it’soneofthefirstplaces The EastRiver’sstifftidesmeanthataparkwould Benepe saidaparkcouldbringbackthe “The Islandwouldactasanurban-scalelabo- FXFOWLE Architectsbelievesthataneco- “If youdidn’thaveajailthereandcould “I justhavethisimageofflyingpasttheStatue Ⅲ and clean-energyproduction. creating anislandfor parks proposed firm FXFOWLE ECO-ISLAND: ECO-ISLAND: Architecture Island CRAIN’S: Tuesday, March 15, 2016 Con Edison Arts & Culture Breakfast 4 Irving Place 8:30 a.m. – 9:00 a.m. Registration & Networking Breakfast 9:00 a.m. – 10:30 a.m. Program A View from New York’s Cost to Attend: $115 for individual ticket(s) $1,150 for table(s) of 10 Arts Leaders You must be pre-registered to attend this event. Join Crain’s and New York’s art leaders as they share best practices and put a No refunds permitted. spotlight on the vital role the Arts & Culture community plays in driving tourism and For more information: ensuring continued growth and diversity of their organization and the city’s economy. Ashlee Schuppius OPENING ARMCHAIR: PANEL DISCUSSION: 212-210-0739 [email protected] For sponsorship information: Irene Bar-Am 212-210-0133 [email protected]

Alan Fishman Andrew Byrne Ty Jones Andrea Miller M.A. Papper Board Chair, Brooklyn Artistic Director Producing Artistic Artistic Director Artistic Director REGISTER TODAY Academy of Music Symphony Space Director, The Classical Gallim Dance The Town Hall crainsnewyork.com/events-artsmarch2016 Theatre of Harlem Host Sponsor:

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Cert. of LP filed LLC upon whom process against it may 09/22/15. SSNY designated as agent of LLC location: NY County. Princ. bus. with DE Sec. of State, Duke & York St., Dover, be served. SSNY shall mail process to c/o upon whom process against it may be served. addr.: 161 Washington St., Ste. 600, DE 19901. Purpose: all lawful purposes. Holland & Knight LLP, Attn: M. James SSNY shall mail process to c/o Corporation Conshohocken, PA 19428. LLC Spitzer Jr., Esq., 31 W. 52nd St., NY, NY Service Co., 80 State St., Albany, NY 12207- formed in DE on 10/6/15. NY Sec. of 10019. Purpose: Any lawful activity. 2543. DE addr. of LLC: 2711 Centerville, State designated agent of LLC upon Ste. 400, Wilmington, DE 19808. Cert. of whom process against it may be Form. filed with Jeffrey W. Bullock - Secy. of served and shall mail process to: c/o NOTICE OF FORMATION OF Manhattan State, Loockerman & Federal Sts., Dover, DE CT Corporation System, 111 8th Mental Health Counseling Services, PLLC. Notice of Qualification of Macquarie 19901. Purpose: Any lawful activity. Ave., NY, NY 10011, regd. agent Articles of Organization filed with the Executive Holdings LLC. Authority filed with NY upon whom process may be served. Secretary of State of NY (SSNY) on Dept. of State on 12/30/15. Office location: DE addr. of LLC: 1209 Orange St., December 21, 2015. Office location: NY County. Princ. bus. addr.: 125 W. 55th Wilmington, DE 19801. Cert. of NEW YORK County. SSNY has been St., 18th Fl., NY, NY 10019. LLC formed in %WDV'($,/3DXWKRULW\ÀOHG Form. filed with DE Sec. of State, designated as agent upon whom process DE on 12/29/15. NY Sec. of State designat- 661<2IÀFH1<&R/3IRUPHG 401 Federal St., Dover, DE 19901. against it may be served. The Post Office ed agent of LLC upon whom process '(H[LVWV%HOOHYXHSNZ\ Purpose: all lawful purposes. address to which the SSNY shall mail a against it may be served and shall mail :LOPLQJWRQ'(661< copy of any process against the PLLC process to: c/o CT Corporation System, 111 GHVLJQDJHQWXSRQZKRPSURFHVV served upon him/her is: 136 Madison 8th Ave., NY, NY 10011, regd. agent upon DJDLQVWWKH/3PD\EHVHUYHG PDLOWR Ave, 6th Floor, NY NY 10016 The prin- whom process may be served. DE addr. of LLC: ,QWHUWUXVW&RUSRUDWH6HUYLFHV'HODZDUH Notice of Qualification of Angelo, cipal business address of the PLLC is: c/o The Corporation Trust Co., 1209 Orange /WGDWVDPHDGGUHVV&HUWÀOHG'(626 Gordon Energy Partners Extension 136 Madison Ave, 6th Floor, NY NY St., Wilmington, DE 19801. Cert. of Form. filed )HGHUDO6W'RYHU'(*3 Fund GP LLC. Authority filed with with DE Sec. of State, 401 Federal St., Dover, 10016 Purpose: any lawful act or activity QDPHDGGUHVVDYDLODW626*HQHUDO NY Dept. of State on 1/22/16. Office DE 19901. Purpose: all lawful purposes. 3XUSRVH location: NY County. LLC formed in DE on 1/20/16. NY Sec. of State designated agent of LLC upon Notice of Formation of KLam Broadway Notice of Formation of JTang Broadway whom process against it may be served and shall mail process to: c/o //&$UWVRI2UJÀOHGZLWK6HF\RI //&$UWVRI2UJÀOHGZLWK6HF\RI MH LAM, LLC. Arts. of Organization filed 6WDWHRI1< 661< RQ2IÀFH with Secy. of State of NY (SSNY) on Angelo Gordon & Co., L.P., 245 Park 6WDWHRI1< 661< RQ2IÀFH Ave., 26th Fl., NY, NY 10167, princi- ORFDWLRQ1<&RXQW\661

Notice of Qualification of Avalon Yonkers ATI Site, LLC. Authority filed with NY Dept. of State on 1/27/16. WANT TO GET YOUR COMPANY Office location: NY County. Princ. bus. addr.: 671 N. Glebe Rd., Ste. IN FRONT OF 250,000 INFLUENTIAL 800, Arlington, VA 22203. LLC formed in DE on 1/22/16. NY Sec. of State designated agent of LLC upon BUSINESS PROFESSIONALS? whom process against it may be served and shall mail process to: c/o CT Corporation System, 111 8th Ave., NY, NY 10011, regd. agent Contact Joanne Barbieri upon whom process may be served. DE addr. of LLC: c/o The at 212-210-0189 Corporation Trust Co., 1209 Orange St., Wilmington, DE 19801. Cert. of for classified advertising Form. filed with DE Sec. of State, opportunities. 401 Federal St., Dover, DE 19901. Purpose: all lawful purposes.

FEBRUARY 29, 2016 | CRAIN’S NEW YORK BUSINESS | 23 20160229-NEWS--0024-NAT-CCI-CN_-- 2/26/2016 7:45 PM Page 1

GOTHAM GIGS

SET UP: Mimi Lien designed a split-level suburban home for Smokefall, now playing at the Lucille Lortel Theatre.

Setting the stage for genius Mimi Lien designs sets that have been described as works of art,bold and totally unconventional MIMI LIEN imi Lien was pruning sunflowers in the Shakespeare Theater, recalled a set where the only middle of an 81-acre meadow—the set of a seats were folding chairs stacked against a wall for AGE 40 recent theatrical project—when she got a attendees to pick up and drop somewhere in the room. M BORN New Haven, Conn. call that she had won an award. The Award. “It was just breaking with all sorts of conventions of “I thought it was a telemarketer,” she admitted. theater,” he said. Deadline Hollywood critic Jeremy RESIDES Brooklyn The caller last fall informed Lien that she was among Gerard said Lien “combines a miniaturist’s eye for EDUCATION B.A., Yale; M.F.A., the 24 honorees of the John D. and Catherine T. detail with a silver strain of whimsy.” New York University MacArthur Foundation grants, also known as the Lien came to her craft quite late. In fact, she sorted HOUSE HUNTING She remem- genius awards. Each comes with a $625,000 stipend, through every other fine art before eventually arriving bers driving around with her mother no strings attached. at set design. in her hometown of Cheshire, Conn., “I had no clue, didn’t have an inkling,” “ It was like Her first love was classical music, and her looking at the houses and thinking she said. “My jaw dropped.” doing second one architecture, which she studied about how their shapes dictated the The fact that the 40-year-old set at Yale University. After graduation, she lives within. For Smokefall, now playing at the Lucille Lortel Theatre, she designer was in the middle of a architecture traveled to Florence to study painting. But designed a split-level suburban home Pennsylvania field, the set of Lost in the without all her fascination with three-dimensional that Variety called “a work of art.” Meadow, when she got the call under- spaces eventually led her to scenography the practical COMING ATTRACTIONS Lien scores why the MacArthur Foundation limitations and the pursuit of an M.F.A. at New York designed a full-scale Tsarist Russian saw her as deserving. It’s the type of far- ” University. After a brief stopover in film, she salon for Natasha, Pierre and the out concept that typifies Lien’s approach landed in theater. And she was hooked. Great Comet of 1812, which is com- to set design. Playgoers to Meadow were provided with “It was like doing architecture but without all the ing to Broadway in September with singer Josh Groban; her next design headphones to hear actors’ conversations, which practical limitations of architecture, of actually hav- is for War, Branden Jacobs-Jenkins’ could be hundreds of feet away. ing to function as a real building,” she said of set family drama opening in May at Her sets have been described as “bold,” “immer- design. “It’s like architecture as art. Or, as I’ve started Lincoln Center’s Claire Tow Theater. sive” and “totally unconventional.” to realize, a kind of a fictional architecture.” Eric Ting, artistic director at the California — ANDREW J. HAWKINS BUCK ENNIS

24 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 29, 2016 20160229-NEWS--0025-NAT-CCI-CN_-- 2/26/2016 7:44 PM Page 1

SNAPS

More than a half-million dollars raised for One Hundred Black Men One Hundred Black Men held its 36th annual benefit gala at the New York Hilton Midtown on Feb. 18. Founded here in 1963, the organization provides mentors for young African- American men. Leaders announced at the event that they plan to initiate a new program to address gun violence and will roll out details soon. Mayor Bill de Blasio spoke at the fundraiser, TV personality Chuck Nice conducted an auction, and the Blue Notes— a Philadelphia soul group—gave a performance.

Diallo Shabazz, executive director of One Hundred Black Men, and Sade Baderinwa, WABC-TV Aldrin Enis, BNY Mellon vice president, Michael Garner, president of One Hundred Black Men, George news anchor, at the One Brooks, president of United Parcel Service’s East Region, Robert Brown, chief financial officer of the Hundred Black Men benefit, New York Yankees, and Will Brown, president of insurance brokerage Brown Cos. & Associates, at the which raised $597,000. One Hundred Black Men gala.

Parlez-vous français? Musicians’ support group hits right note

Alexandra Bottrie and her husband, Olivier Bottrie, president of travel retail worldwide at Estée Lauder Cos., at the Lycée Français de New York school gala at the Park Avenue Armory on Feb. 6.

Claudia Kaplan, senior vice president of client Doris Konig, Omega Ensemble development at artistic director, and Frank Christian Dior Huang, concertmaster of the Couture, and Susan New York Philharmonic, at a Fales-Hill, writer Feb. 8 fundraiser for Omega, and television pro- which scouts and supports ducer, at the Lycée young musicians. The event was Français event, held at the Racquet and Tennis which raised Club and raised $81,000. $2 million. SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS

JAMEL PIRON OTTO MARTIN, GABOURY/PATRICKMCMULLAN, SYLVAIN GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO, [email protected]

FEBRUARY 29, 2016 | CRAIN’S NEW YORK BUSINESS | 25 20160229-NEWS--0026-NAT-CCI-CN_-- 2/26/2016 7:43 PM Page 1

FOR THE RECORD*

babkas, cheesecakes, a Department of Parks Alexander Chudnoff. The Seventh avenues. The ten- feet at 380 Broome St. NEW IN TOWN daily rotating bread menu and Recreation asking rent was in the ant was represented by The Taiwanese-Chinese and a Concord Cake as an Seeks competitive sealed high $70s per square foot. Michael Davis of Corbett & restaurant will occupy the House of La Rue homage to the now- bids by 10:30 a.m. on Dullea. The landlord, Thor ground floor in the six- 106 Thames St., Brooklyn defunct Soutine Bakery. March 14 for reconstruc- RETAIL Equities, was represented story residential building. The seasonal tion of a synthetic turf Salons by JC signed a 10- in-house by Sam Polese The tenant was represent- Massachusetts-based pop- Diesel field in Ranaqua Park, year lease for 11,000 and Michael Worthman. ed by SGC Retail’s Taryn up shop opened a brick- 625 Madison Ave. located west of Brown square feet at 124 W. 24th The asking rent for the Brandes and Jacqueline and-mortar store in The Italian clothing retailer Place between East 135th St. The salon will occupy ground floor was $90 per Klinger. The landlord, Bushwick. Its first New opened its sixth city store, and East 136th streets, 5,500 square feet on the square foot. Dalan Management, was York shop offers eccentric in midtown. The store Bronx. Contact Michael entire ground floor and represented by RES New stage wear, such as offers Diesel’s Black Gold Shipman at (718) 760-6771 the selling basement in the Mimi Cheng’s York’s Jeff Angel. The ask- sequined bras, unisex collection and a separate or michael.shipman@ six-story building Dumplings signed a 10- ing rent was $11,700 per French fry leggings and section for denim. Digital parks.nyc.gov. between Sixth and year lease for 700 square month. pastel-colored wigs, as well artwork from Fields, a as casual clothing items like sound and visual art col- trendy hoodies and hats. lective, is displayed GOODS AND SERVICES throughout the store. DEALS ROUNDUP Nunez Housing Authority 247 Smith St., Brooklyn Luckybird Bakery Seeks requests for propos- TARGET/SELLERS TRANSACTION BUYERS/INVESTORS TRANSACTION TYPE SIZE [IN MILLIONS] The bar/lounge opened in 163 Montrose Ave., als by 2 p.m. on April 29 Boerum Hill. The menu Brooklyn for capital rehabilitation ADT Corp./ $12,458.4 Protection 1 Inc. SB M&A offers Latin-inspired cock- The pastry shop opened in and property management Corvex Management (Manhattan); Fidelity tails and a host of tapas East Williamsburg. The of the public-housing Management & Research Co. options including octopus, baking studio offers development known as meatballs, flatbread and made-to-order baked Ocean Bay (Bayside), Ingram Micro Inc./ $7,242.0 Tianjin Tianhai Investment Co. SB M&A grilled shrimp. Brunch is goods like bespoke cakes located at 434 Beach 54th Lakewood Capital Management (Manhattan) served on Sundays. decorated with fresh flow- St., Far Rockaway, ers, organic berries and Queens. Contact Meddy Truven Holding Corp./ $3,576.9 IBM Watson Health SB M&A Stone & Strand exotic chocolates. Ghabaee at (212) 306-4539 Veritas Capital (Manhattan) 185 Franklin St. or meddy.ghabaee@nycha The e-commerce jewelry .nyc.gov. Diligent Corp. (Manhattan)/ $504.7 Insight Venture Partners FB M&A Accident Compensation Corp., (Manhattan) brand opened its first BANKRUPTCIES asset management arm; brick-and-mortar store, in Human Resources HWM (NZ) Holdings Ltd.; TriBeCa. The shop carries 721 Vermont St. Estate Administration Spring Street Partners (Manhattan) such trinkets as necklaces 81 Prospect Pl., Brooklyn Seeks competitive sealed Lytx Inc./ GTCR by Dana Rebecca and rings Filed for Chapter 11 bank- bids by 11 a.m. on April 5 $500.0 FB M&A Delta-v Capital; Insight by Nora Kogan. ruptcy on Feb. 11. The fil- for electrical construction, Venture Partners (Manhattan); ing cites estimated assets maintenance and repair JMI Equity; Menlo Ventures; Sunnyvale Triangle Peak Partners; of $100,001 to $500,000 services on an as-needed Volvo Group Venture 1031 Grand St. and estimated liabilities of basis. Contact Polina Fuki Capital; Welsh Carson The bar/restaurant opened $500,001 to $1 million. at (929) 221-6425 or Anderson & Stowe (Manhattan) in East Williamsburg. It is [email protected]. Targa Resources Corp./ Stonepeak Infrastructure Partners also a performance venue Alpha Diner Corp. $500.0 GCI not disclosed (Manhattan) that hosts regular comedy 105-45 Crossbay Blvd., shows, concerts and DJ Queens REAL ESTATE DEALS Black Hills Colorado $215.0 Argo Infrastructure Partners FB M&A sets. The menu offers Filed for Chapter 11 bank- IPP/Black Hills (Manhattan) (49.9%) small bites and a full bar. ruptcy on Feb. 19. The filing COMMERCIAL Electric Generation cites estimated assets of $0 Citadel signed an 11-year The Economist Plaza/ $187.9 Tishman Speyer Properties SB M&A To Spiti to $50,000 and estimated lease for 200,000 square The Economist Group Ltd. (Manhattan) 160 Havemeyer Ave. liabilities of $0 to $50,000. feet at 425 Park Ave. The The Greek take-out Chicago-based hedge fund Jana Mobile Inc./not disclosed $57.0 Publicis Groupe SA; GCI restaurant opened in La Kandela Restaurant will occupy the penthouse Spark Capital Partners; Verizon Ventures (Manhattan) Williamsburg. Traditional 1004 Jamaica Ave., in the building between Queens Greek specialties like East 55th and East 56th Sprout Social Inc./not disclosed $42.0 Goldman Sachs Group, GCI moussaka, grape leaves, Filed for Chapter 11 bank- streets. The tenant was Merchant Banking Division chicken pie, hummus, ruptcy on Feb. 10. The fil- represented by CBRE’s (Manhattan); New Enterprise Associates gyros and beet salad are all ing cites estimated assets of Chris Corrinet, John offered for $6 and under. $0 to $50,000 and estimat- Nugent and Andrew Synlogic Inc./not disclosed $40.0 Atlas Venture; Deerfield GCI ed liabilities of $100,001 to Sussman. The landlord, Management Co. (Manhattan); $500,000. The creditor L&L Holding Co., was rep- New Enterprise Associates; OrbiMed Advisors (Manhattan) COMPANY MOVES with the largest unsecured resented in-house by claim is 1002 Realty Corp., David Berkey. The asking Selected deals announced for the week ended Feb. 18 involving companies in metro New York. SB Barneys New York owed $108,546. rent of the penthouse was M&A: Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company 101 Seventh Ave. $300 per square foot. without the participation of a financial buyer. FB M&A: Financial buyer M&A represents a minority or The department store has majority acquisition of existing shares of a company with the participation of a financial buyer. GCI: Growth capital investment represents new money invested in a company for a minority stake. returned to Chelsea. Its GOVERNMENT HL Group signed a 10- SOURCE: CAPITALIQ third flagship offers print- CONTRACT year lease for 13,115 feet at ed silk Gucci bomber jack- OPPORTUNITIES 350 Madison Ave. The ets, Vetements hoodies, marketing and communi- GET YOUR NEWS ON THE RECORD women’s shoes and ready- Department of Design cations firm is expanding *To submit company openings, moves or real estate deals, or to receive further information, to-wear, a Blind Barber for and Construction to the building between email [email protected]. men’s haircuts and shaves, Seeks competitive sealed East 44th and 45th streets. For the Record is a weekly listing to help businesspeople in New York find opportunities, and a Fred’s restaurant. bids by 2 p.m. on March 18 The tenant was represent- potential new clients and updates on customers. Bankruptcy filings from the Eastern and for the gut renovation of ed by CBRE’s Frederick Southern districts of New York are listed alphabetically, as are recently announced New Breads Bakery FDNY Company 293 at 89- Fackelmeyer. The land- York City agency contract opportunities. Real estate listings are provided in order of square 1890 Broadway 40 87th St., Woodhaven, lord, RFR Realty, was rep- footage. Stock transactions at New York’s largest publicly held companies were filed with The bakery opened on the Queens. Contact Yamina resented in-house by AJ the Securities and Exchange Commission. Listings are in order of transaction value, and the information was obtained from Thomson Reuters. Upper West Side. Its second Youb at (718) 391-1016 or Camhi and Mitchell storefront offers its popular [email protected]. Konsker, and JLL’s

26 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 29, 2016 20160229-NEWS--0027-NAT-CCI-CN_-- 2/26/2016 7:43 PM Page 1

PHOTO FINISH

Paper losses

ommuters spilled onto the platform of Grand Central Terminal’s Track 17 at 10 a.m. on a recent Tuesday, passing the sole recycling bin without giving it a glance. The metal mesh container for discarded copies of the city’s tabloids and other paper was barely a third full. CGrand Central’s recycling haul has plummeted over the years, shrinking to 353 tons in 2010 from 834 in 2005. Last year, that number slid to 193 tons, and not because New Yorkers have become less environmentally conscious. Those figures track the decline in print circulation across the news industry. The New York Times has lost about a third of its print readers, with average weekday print circulation dropping by 400,000 from 2005 to 2012, according to The Economist. During the same period, the Daily News’ circulation fell by almost half—350,000— while Westchester’s Journal News saw its number plunge to 68,850 from 138,539. Riders haven’t shed many tears. According to a 2015 report from the Entertainment Software Association, U.S. commuters with games on their smartphones killed nearly a third of their commute time playing them. — PETER D’AMATO PETER D’AMATO

FEBRUARY 29, 2016 | CRAIN’S NEW YORK BUSINESS | 27 B:11.125” T:10.875” S:10.25”

Move your business forward. Leave data limits behind. Get the Best Unlimited 4G LTE Plan.

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Limited time offers; subject to change. Taxes and fees additional. Credit approval, deposit and SIM starter kits may be required. If you switch plans you may be bound by existing terms (including early termination provisions) and/or charged an up to $200 fee. Monthly Regulatory Programs (RPF) & Telco Recovery Fee (TRF) totaling $2.71 per voice line ($0.60 for RPF & $2.11 for TRF) and $0.98 per data only line ($0.15 for RPF & $0.83 for TRF) applies. Taxes approx. 6-28% of bill. Unlimited 4G LTE plan includes 200 MB roaming. Coverage not available in some areas. Network Management: Service may be slowed, suspended, terminated, or restricted for misuse, abnormal use, interference with our network or ability to provide quality service to other users, or signiﬁ cant roaming. Customers who use an extremely high amount of data in a bill cycle will have their data usage de-prioritized compared to other customers for that bill cycle at locations and times when competing network demands occur, resulting in relatively slower speeds. See T-Mobile.com/OpenInternet for details. See Terms and Conditions (including arbitration provision) at www.T-Mobile.com for additional information. T-Mobile and the magenta color are registered trademarks of Deustche Telekom AG. © 2016 T-Mobile USA, Inc.

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