STATION the Problems at Penn Have Reached a Crisis Point

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More TV shows coming to town P. 7 | The List: New York’s largest hospitals P. 11 | City musicians nd new ways to rock on P. 14

NEW YORK BUSINESS® MAY 29 - JUNE 4, 2017 | PRICE $3.00

PAIN STATION The problems at Penn have reached a crisis point. But they’ve also rekindled long-stalled plans to finally fix the place VOL. XXXIII, NO. 22 WWW.CRAINSNEWYORK.COM PAGE 25

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P001_CN_20170529.indd 1 5/26/17 8:18 PM MAY 29 - JUNE 4, 2017 CRAINSNEW YORK BUSINESS FROM THE NEWSROOM | JEREMY SMERD | EDITOR IN THIS ISSUE Taking the lead 4 IN CASE YOU MISSED IT 5 POLITICS

EACH OF US HAS A COMMUTE-FROM-HELL STORY. Getting 6 ASKED & ANSWERED Columbia around New York was never easy. Now it’s all but impossible. ENTERTAINMENT University 7 nursing Delays are up, shutdowns are frequent, and more of both are 8 WHO OWNS THE BLOCK school opens looming. The MTA is leaderless. The Port Authority’s search new building 9 HEALTH CARE for a CEO has gone nowhere. A May report showed that the Second Avenue subway cost $807 million per mile to build, 10 VIEWPOINTS while a similar project in London cost $124 million per mile. 11 THE LIST But efforts to expand design-build, an approach to construc- FEATURES tion that can save time and money, has hit roadblocks in 14 ROCKING ON Albany. And what are the governor and mayor doing about it all? Fighting—again. 25 PENN STATION WOES “The current transit crisis is akin to the ’75–’76 fiscal crisis,” said a business -in sider who visited our newsroom last week. He was one of many longtime observers of politics and policy who joined us for a frank, and sometimes frightening, conversation about the most pressing issues confronting local businesses. Transportation was at the top of the list. “The subways are the lifeline of the city,” the insider said. “If nobody does anything, the city will sputter.” That mass-transit pain point has also led to more cars P. - 37 on the roads. And Uber’s success, coupled with the bur I don’t see LISA RODRIGUEZ geoning on-demand delivery economy, has come at a leadership in the cost of streets clogged with vehicles. “A trip that took 15 “ 37 GOTHAM GIGS business community. minutes by car now takes an hour and 15 minutes,” said 38 SNAPS another visiting lobbyist. Where is today’s 39 PHOTO FINISH During the fiscal crisis 40 years ago, business leaders Lew Rudin? stepped up. Developer Lewis Rudin, who created the CORRECTIONS Association for a Better New York, helped orchestrate a Eighteen buildings were offering Hello Alfred as of May 21. Seventy-five buildings planned to feature solution. David Rockefeller used the Partnership for New York City to wring out the service nationwide as of May 22. Those facts federal funds for infrastructure. But now? “I don’t see leadership in the business were misstated in “Well served,” published May 22. community,” one executive lamented. “Where is today’s Lew Rudin?” The Essential Plan provides no- or low-cost insur- There is no shortage of big-name business leaders in the city today, but the econ- ance to New Yorkers. Its name was misstated in “Flipping NY seats in wake of health care vote will be hard,” omy has diversified, and New York’s largest companies tend to think globally, not published May 15. locally. “Globalization has focused business attention more on the federal government than the state and local,” said partnership CEO Kathryn Wylde. While there’s been an explosion in the number of business groups, most are myopically focused on their own niche and neighborhood. This fragmentation has diminished any individual’s or sector’s ability to rally the city, let alone the region. But Crain’s is here to help. We’re hosting our annual real estate conference June 14, with an eye toward tackling these very issues. But where is the political leadership? Bill de Blasio and Andrew Cuomo are both cruising toward ON THE COVER re-election. Both have always had ambitions beyond New York, and neither rides the ILLUSTRATION: TAYLOR CALLERY subway. Where does that leave the rest of us?

DIGITAL DISPATCHES CONFERENCE CALLOUT Go to CrainsNewYork.com DEADLINE EXTENDED TO JUNE 23 REGISTER Every year Crain’s identifies the CRAIN’S FASTEST- best employers in > GROWING COMPANIES New York City. If you love working at your Each year Crain’s recognizes the company, let us know. New York–area companies with To register your firm or the highest three-year revenue to learn more about the growth rate. Public and private feature, go to bestplaces companies with at least toworknyc.com. There is a $199 registra- $10 million in revenue tion fee, and the deadline is June 30. Go to are eligible. CrainsNewYork.com/BestPlaces to see our To submit a company, go to previous honorees. CrainsNewYork.com/Fast50. ■ CHECK OUT To find an article in a past print edition or to simply peruse Vol. XXXIII, No. 22, May 29, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for the contents of a particular issue, go to double issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 18, by Crain Communications Inc., 685 Third CrainsNewYork.com/Issue-Archives. If Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. you’re a subscriber, you can also view and For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. download PDFs. (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. BUCK ENNIS, TAYLOR CALLERY BUCK ENNIS, TAYLOR

2 | CRAIN’S NEW YORK BUSINESS | May 29, 2017

P002_CN_20170529.indd 2 5/26/17 6:52 PM WHAT’S NEW May 29, 2017

AGENDARampant abuse of parking placards erodes trust in city government

he abuse of parking placards by city employees is not as bad as most New Yorkers think. It’s worse. Start with the fact that 160,000 city workers have placards. That’s about half of the workforce. No way do all these plac- Tard holders even have cars, let alone need them to do their job. The city’s indulgent distribution of placards encourages employees who could use mass transit or walk to drive instead, which causes congestion, pollution and other problems. Economists refer to these as externalities because PARKING PERK: they impose costs not on the people who create them but on everyone else. Half of city And 160,000 is just the number of valid parking placards. Untold thou- workers have placards but may sands of counterfeit ones sit on dashboards across the city, casually fab- not own a car or ricated using color printers and laminating machines. Their prevalence need it for work. suggests that traffic agents are not trained to detect them or just don’t care to. Our guess is the latter, considering that when cars bearing placards are integrity issues. When an off-duty cop caught driving erratically is giv- parked illegally, agents don’t ticket them. It is an unspoken code, root- en a ride home rather than a Breathalyzer, it fosters a culture that puts ed in the notion that city workers are underpaid and thus deserve ben- public safety at risk. Placard abuse is not as likely to kill anyone, but tol- efits and courtesies to compensate for their erating it creates a slippery slope that is bad self-chosen civic sacrifice. Never mind that for business. So when Mayor Bill de Blasio government salaries are similar to private- The mayor was right to order a was somehow compelled to issue 50,000 sector ones when educational qualifications crackdown, but wiping out the parking passes to teachers this month, he are taken into account. culture of cheating will be difficult did the right thing by insisting they be used But this is not about money, Vision Zero as intended—and backing it up with a new or global warming. It’s about trust in gov- enforcement protocol for all placards. ernment being undermined when public workers gin up rules and privi- Unfortunately, the odds are he will fail, because the culture of cheating leges for themselves. Call it a mild form of corruption—if corruption can is so entrenched. Even his predecessor, Michael Bloomberg, whose mis- ever be mild. Honest application of the law is a key differentiator between sion and talent was to professionalize government, could not wipe it out. economies that enrich nations and those where virtually every business Ironically, de Blasio put the NYPD, itself a prolific abuser of parking priv- permit, license and approval requires a bribe. ileges, in charge of the crackdown. But any other agency’s odds of success New York City is not a banana republic, but we are hardly without might be just as poor. The best we can say is good luck. — THE EDITORS

FINE PRINT The tristate area experienced 92 days with high smog and 168 days with elevated particulate matter in the air in 2015, a new study has found. The area ranked a dismal 358th out of 403 U.S. cities for smog days and 350th for particulate matter, better known as soot, that year. Global warming will exacerbate the problem, according to the Environment New York Research & Policy Center, which compiled the study.

BY GERALD SCHIFMAN STATS

25 WORDS OR LESS WEDDED BLI$$

NEW YORK METRO AREA COUPLES have the HIGHEST AVERAGE WEDDING COSTS IN THE METRO AREA country’s priciest weddings. Manhattan AND THE CIT $80,000 pairs spend the most, but their average 2015 2016 I’ve exploited this cost fell last year, while bills rose for “ their counterparts in the outer boroughs, Long Island and parts of New Jersey. opportunity because $60,000 it works. Metro area wedding markets among the nation’s seven

—Brooklyn internet retailer Vitaly 5 most expensive $40,000 Y Borker in 2010, before being arrested Average cost for threatening customers, which he $ Manhattan brides said generated negative reviews that 2,564 paid for a wedding $20,000 boosted his Google search ranking. dress last year, 5.4% less than in 2015

After three years in prison, Borker Average cost tweaked his business model, allegedly $ Long Island brides $0 using insults instead of threats. He was 2,473 paid for a gown last year, up 10.5% from 2015 Manhattan Long Island charged with mail fraud last week. central Jersey Hudson Valley North and Outer boroughs Westchester/

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May 29, 2017 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20170529.indd 3 5/26/17 7:59 PM AGENDA ICYMI CRAINSNEW YORK BUSINESS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701 EDITORIAL Advertisers are feeling the editor Jeremy Smerd managing editor Brendan O’Connor assistant managing editors Erik Engquist, heat, from the left and right Jeanhee Kim, Robin D. Schatz web editor Amanda Fung EAN HANNITY IS NO BILL O’REILLY. The advertiser boy- copy desk chief Telisha Bryan art director Carolyn McClain cott of Hannity’s Fox News show that erupted last week photographer Buck Ennis senior reporters Joe Anuta, Aaron Elstein, after he promoted a groundless conspiracy theory in- Matthew Flamm, Daniel Geiger S reporters Rosa Goldensohn, volving the murder of DNC staffer Seth Rich failed to gain the Jonathan LaMantia, Caroline Lewis same momentum that brought down The O’Reilly Factor in data reporter Gerald Schifman web producer Peter D’Amato April. But the speed with which seven advertisers pulled their columnist Greg David spots does underscore several important trends. contributing editors Tom Acitelli, Theresa Agovino, Erik Ipsen, Cara S. Trager One is that consumers of all political persuasions are getting ADVERTISING better at pressuring advertisers, as also seen last week, when ALL TALK: “I’m www.crainsnewyork.com/advertise not a journalist,” advertising director Irene Bar-Am, AT&T, Coca-Cola and Univision withdrew their sponsorship Hannity declared [email protected], of the Puerto Rican Day Parade over its decision to honor con- last year. “I’m a 212.210.0133 talk-show host.” senior account managers troversial Puerto Rican nationalist Oscar López Rivera. Lauren Black, Zita Doktor, Rob Pierce, Stuart Smilowitz, Debora Stein A second, perhaps more telling lesson is that television as sales coordinator Devin Arroyo, an advertising medium may be becoming expendable. This is particularly true for the tech and e-commerce com- 212.210.0701, [email protected] ONLINE panies that withdrew from Hannity, such as Casper mattresses and cars.com. “These advertisers know they can get general manager Rosemary Maggiore, 212.210.0237, those eyeballs elsewhere,” said Matt Britton, chief executive of digital marketing agency Crowdtap. [email protected] Britton recommends that brands avoid news and opinion shows entirely because they are bound to create CUSTOM CONTENT director of custom content controversy. “If you pull your ads, you make one side happy and the other side mad,” he said. “There’s no upside.” Patty Oppenheimer, 212.210.0711, Clearly many advertisers disagree. Ad revenue for Hannity grew 17% last year to $65.7 million, according to [email protected] multicultural sales manager Giovanni Perla, Kantar Media, putting the show in second place across the news sector, behind only O’Reilly’s show. [email protected] senior custom marketing manager But Fox is also facing big challenges as its leading role in conservative media is tested by more extreme outlets Sonia David, [email protected] custom project manager Danielle Brody, online. [email protected] “We’re hearing from consumers that Fox News isn’t conservative enough anymore,” said Bill Day of media con- EVENTS www.crainsnewyork.com/events sulting firm Frank N. Magid Associates. “If you’re getting attacked from the right, what do you do as your available director of conferences & events audience gets chipped away? Fox is figuring that out.” — MATTHEW FLAMM Courtney Williams, 212.210.0257, [email protected] manager of conferences & events Adrienne Yee, [email protected] events coordinator Ashlee Schuppius, It all comes out in the wash DATA POINT Tenth Avenue freak-out [email protected] Citigroup settled with federal regula- Real estate developer Related Cos. met AUDIENCE DEVELOPMENT NEW YORK’S BIRTH RATE DROPPED tors for $97.4 million to resolve alle- with struggling retailer Neiman Marcus director of audience & content partnership development Michael O’Connor, gations of inadequate oversight at its 1.4% BETWEEN 2014 AND 2015. to discuss Related investing in the chain 212.210.0738, [email protected] Banamex USA unit. The Justice De- IT HAS DROPPED 9% SINCE 2006. and possibly buying it. Neiman Marcus partment has investigated the unit for is the retail anchor tenant for Related’s REPRINTS THE CITY’S 14.2 BIRTHS PER reprint account executive Lauren Melesio, “willfully failing to maintain an effec- Hudson Yards development. 212.210.0707 tive anti-money-laundering” program. 1,000 PEOPLE WAS STILL 15% PRODUCTION Uber undersharing production and pre-press director Big top dropped HIGHER THAN THE NATION’S. Uber owes its New York drivers up to Simone Pryce The Ringling Brothers and Barnum & $45 million. The company failed to ac- media services manager Nicole Spell SUBSCRIPTION CUSTOMER SERVICE Bailey circus’ 146-year history came to count for the local sales tax and an in- www.crainsnewyork.com/subscribe an end with a final performance May Checking out jury-compensation fee before taking its [email protected] 21 at Nassau Coliseum. Unsustainable Standard International has put the commissions from drivers’ paychecks. 877.824.9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or $99.95 drops in attendance for The Greatest Standard High Line hotel on the block. The refund amounts to $900 per driver. one year, $179.95 two years, for print Show on Earth were exacerbated last It bought the Meatpacking District’s subscriptions with digital access. year, when animal-rights groups suc- 338-room boutique for $400 million in to contact the newsroom: www.crainsnewyork.com/staff ceeded in getting elephants removed 2014. The hotel opened in 2009. 685 Third Ave., New York, NY 10017-4024 from the show. phone: 212.210.0100; fax: 212.210.0799 Vive la télévision câblée Entire contents ©copyright 2017 Walk-in showers Cablevision next year will be rebranded Crain Communications Inc. All rights reserved. ©CityBusiness is a registered Kohler Co. opened its first Experience as Altice, the name of the French cable trademark of MCP Inc., used under license Center, in the Flatiron District, where and telecom giant that snapped it up for agreement. customers book appointments to try $10 billion last summer. City and state CRAIN COMMUNICATIONS INC. new products. Real Rain simulates officials approved the deal after some BOARD OF DIRECTORS chairman Keith E. Crain standing in the rain. VibrAcoustic hy- conditions were met, such as Altice not president Rance Crain drotherapy creates a relaxing bathtub laying off certain staff for five years. treasurer Mary Kay Crain, Cindi Crain experience through sound waves. Eight senior executive vp, William Morrow executive vp, director of strategic centers are planned globally. A little razzle-dazzle operations Chris Crain The Broadway League announced that executive vp, director of corporate Les is more Great White Way ticket sales were a Grade expectations operations K.C. Crain senior vp, group publisher David Klein CBS has picked up CEO Les Moonves’ record-high $1.45 billion for the 52- The state Senate passed a bill vp/production, manufacturing David Kamis contract for two more years, extending week season that just ended, up 5.5% that would apply a letter-grading chief financial officer Bob Recchia it through June 2021. The extension from last year. Higher ticket prices off- system to food carts and trucks chief information officer Anthony DiPonio does not raise his salary of $3.5 million, set a 0.4% decline in attendance, with in the city. The 4,319 food cart founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996] nor does it change other terms such as many shows running below 80% of and truck inspections carried secretary Merrilee Crain [1942-2012] bonuses and incentives. Moonves has seating capacity. Revenue rose through out in Manhattan last year led to been president and CEO since 2006, af- dynamic pricing, in which ticket prices 5,044 violations.

BUCK ENNIS, GETTY IMAGES ter the network split from Viacom. rise as demand does.

4 | CRAIN’S NEW YORK BUSINESS | May 29, 2017

P004_CN_20170529.indd 4 5/26/17 8:01 PM AGENDA POLITICS

Retailers, fast-food biz face SERVING NOTICE: new law on worker scheduling Late shift changes will net workers Unions win passage of mandates only three other U.S. cities have BY ROSA GOLDENSOHN more pay.

ast-food rest Democrats Julissa Council speaker next the 51 council members, aurants and Ferreras-Copeland of year, sponsored bills in only the three Republi- The measures require shifts, or “clopenings,” at retailers will Queens and Corey John- the package, which was cans voted against all five fast-food employers to eateries; and let employ- be hit with son of Manhattan, who championed by Coun- bills, while one Dem- offer shifts to current ees divert money from Fnew scheduling regu- are both vying for labor cilman Brad Lander, a ocrat dissented on one workers before new their paycheck to advo- lations under city laws support to become City Brooklyn Democrat. Of fast-food bill. hires; ban back-to-back cacy groups. ■ that passed last week following a push by or- ganized labor. The legislation com- pels fast-food eateries to give workers their schedule two weeks in advance or pay them ex- tra—from $10 if notice is given a week ahead to $75 for cutting hours or canceling a shift less than 24 hours before. It covers limited-service outposts of chains with 30 or more restaurants nationwide and where customers pay for food in advance of eating. Orchestrating One of the five bills in the package affects all retailers—not just fast- excellence food joints—with 20 Welcome to Hackensack Meridian or more employees. It requires worker sched- Health. Where researchers fast-track ules to be posted at least breakthroughs into life-changing care. 72 hours before their The medical school of tomorrow, shift, effectively banning “on-call scheduling,” in with humanity at its core, is taking which workers have to shape today. And a full spectrum of be available but are un- paid unless called in. services—from virtual appointments That measure was to home health to treating the most applauded by retail complex conditions—is perfectly workers union RWDSU, a supporter of Mayor orchestrated and in tune with your Bill de Blasio, who said needs. Here, everyone works he would sign the bills. Building-service work- together to make your world better. ers union 32BJ SEIU was a driving force behind Let’s move forward together. the scheduling bills. HackensackMeridianHealth.org Similar ones have passed in Seattle, San 844-HMH-WELL Francisco and Em- eryville, Calif., but a 32BJ spokeswoman said New York’s would have the most impact because of the city’s size. The po- litically powerful union has made fast-food workers part of its long- term strategy for growing the labor movement. The package drew concerns and opposition from business leaders, but its focus on national chains reassured City Council members. Many fast-food locations, how ever, are owned by local

BLOOMBERG NEWS franchisees.

May 29, 2017 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20170529.indd 5 5/26/17 1:47 PM AGENDA ASKED & ANSWERED NONPROFITS INTERVIEW BY MIRIAM KREININ SOUCCAR

HEATHER LUBOV CITY PARKS FOUNDATION

he outdoor concert season kicked off in mid-May with Gov’t Mule at the Rumsey Play eld in Central Park. The producer, City Parks Foundation, puts on We can’t pay more than 100 shows in 16 parks, provides free artists as much Tsports instruction for 12,000 kids and oversees 30,000 park “ volunteers. Under Executive Director Heather Lubov, its latest as Radio City can, project is building its brand. but you can’t beat playing a free show Why is branding the foundation important, and what is your plan? in Central Park People know about SummerStage but haven’t heard of us. Flying under the radar hurts our ability to raise money and therefore serve more people. My main focus so far has been on marketing strategy. We are buying ads for the rst time and working with a branding agency to redesign all our materials. The tagline is “Bringing Our Parks to Life.”

Your name sounds like a city agency. Is that part of the problem? While we work closely with the Parks Department, the similarity of our names certainly makes it challenging for New Yorkers to understand our role. We do not manage parks; we are a private organization that offers free programs and helps neighborhood residents activate and enliven their local parks, all with the goal of turning parks into thriving community centers.

What else are you doing to grow the organization? Our annual operating budget is now $14 million, and when DOSSIER I started two years ago, it was $11 million. We raise about $6 million from individuals and corporations, and get $1 WHO SHE IS million from the city; the rest comes from earned income and Executive director, City our [$23 million] endowment. We also just made our rst-ever Parks Foundation deal with a promoter, The Bowery Presents. They will book the SALARY $270,000 20 Central Park shows where we sell tickets. AGE 47 ENDOWMENT How did you increase the budget so much in just two years? $23 million There were several key areas of strategic growth, including a EMPLOYEES 65 full- $500,000 increase in individual donations, a $1 million increase time, plus 400 during in new government grants and a $300,000 increase in revenue during summer rang- at our fundraisers. We also earned $1 million more in revenue at ing from stagehands the Rumsey Play eld venue. to tennis instructors BORN Far Rockaway, Is it hard to get big names to play SummerStage? Queens We are a concert venue like anyone else, and our musicians are LIVES Upper West Side paid. We can’t pay as much as Radio City, but you can’t beat playing a free show in Central Park. We are also renovating our EDUCATION M.A. in history, Columbia College; M.P.A. in nonpro t facilities for 2019. We’ve raised $3 million from the city, and we management, NYU Wagner School need another $1 million to $2 million to buy a new stage, trailers for the artists and concessions, new seating and a sound system. RÉSUMÉ Before this job, Lubov was chief fundraiser for the Park Avenue Armory and vice president of develop- How do the shows outside Central Park do? ment for the New York Public Library. It’s the area of our greatest growth. We now have 90,000 people HANDS-ON Lubov attends nearly seeing shows in their own neighborhoods. That doesn’t include every show that her organization stages. Central Park, which attracts 300,000 people a season. “I worry about the crowds, weather, traf c and if the bathrooms are clean.” Has any type of programming failed? BEST SHOW EVER The Jungle Brothers Yes. Spoken word [poetry] wasn’t a good match. The performers’ played to a crowd of 3,000 at Crotona quality was amazing, but music and dance attract more people. Park in the Bronx in 2015.

What will be this summer’s highlights? BUCK ENNIS Our rst free show is on June 3, with Mavis Staples in Central Park. We expect to hit our 5,000-seat capacity. About 90 of our 110 shows are free. Elvis Costello & the Imposters are coming in June, They Might Be Giants will play Family Day in August, and George Clinton will be in Flushing Meadow Park. We’re getting a huge number of hits. ■

6 | CRAIN’S NEW YORK BUSINESS | MAY 29, 2017

P006_CN_20170529.indd 6 5/26/17 1:53 PM AGENDA ENTERTAINMENT

Film, stage stars to shoot new TV shows in New York TV-production boom continues after renewal of the tax incentive BY MIRIAM KREININ SOUCCAR

t least five new series will two different Silvercup Studios facilities be shot in New York City in in Long Island City. the upcoming television sea- Also filming at Silvercup this sum- son and a number of locally mer is Maniac, a Paramount TV pro- Abased shows renewed, continuing the duction for Netflix starring Stone and city’s run as a leading TV production Jonah Hill. The show marks the first center. Film and stage actors including time Paramount TV has based a pro- Emma Stone, Benicio Del Toro and duction in New York. A spokesperson Alan Cumming will star in new pro- for Paramount said they chose the city ductions, while Liev Schreiber moves because the director, Cary Fukunaga, his hit series from Los Angeles to his is based here and the tax credit makes hometown. Additional projects will be the financing possible. Fukunaga was announced, say industry insiders. the Emmy-winning director of HBO’s “The new projects, combined with True Detective. the renewals, make this a very good year Other new shows include Escape at for New York,” said Hal Rosenbluth, Clinton Correctional, a Showtime series president of Kaufman Astoria Studios. about the upstate prison break in 2015, The city’s television-production directed by Ben Stiller and starring Del boom stems from two factors: the Toro. It will film at Kaufman Astoria state’s annual $420 million tax credit, Studios. And there are CBS’ Instinct and which was recently renewed through NBC’s Rise, both shooting at Broadway 2022, and the continuing expansion Stages. Showtime’s hit series Ray Dono- of the television sector with new en- van is reportedly moving production of trants, such as Netflix and Amazon, PLAYING IN A NEIGHBORHOOD NEAR YOU: (Clockwise from top left) Emma Stone, Jonah its sixth season here from Los Angeles. Hill, Liev Schreiber, Benicio Del Toro and Ben Stiller (as director) all have TV shows said film commissioner Julie Menin. The move accommodates its star, Liev shooting this summer. Many of the most buzzed-about in- Schreiber, who plays a lawyer and Hol- coming shows are not for network TV. lywood fixer. Schreiber’s children live The biggest production is Succession, in Manhattan with their mother, actress Studios in Brooklyn. Comedy Central’s the city for the current season ending an hour-long drama for HBO about a Naomi Watts. Broad City will shoot its next season May 31 has not been released yet. Film fictional, Murdochesque global media Shows that were renewed include at Broadway Stages. Blacklist Redemp- executives believe it will beat last year’s family, starring Brian Cox and Kieran Madame Secretary, Elementary and tion—an offshoot of The Blacklist shot at record, when 52 prime-time episodic Culkin. The series, which starts prep Younger, filmed at Silvercup; and Power, Broadway Stages—was canceled. TV series were filmed here, a 13% in- work in June, is taking four stages at Blindspot and Gotham, shot at Steiner The total number of shows filmed in crease from the previous year. ■

Big-budget films are squeezed out lion is spent on TV production here by boom in TV production annually, second to California, with an estimated $30 billion, according For the second year in a row, producers to the report. of big-budget movies are leaving the But local producers say the loss of Empire State on the cutting room floor. film is more than financial. Of the 100 highest-grossing domes- “I know it doesn’t make a differ- tic feature films released theatrically ence to the soundstage owners if they last year, only six were made in New are rented to a movie or TV show, but York state, according to a study by non- if you’re selling the city as the capi- profit FilmL.A. That’s down from seven tal of entertainment, you don’t want in 2015 and 12 in 2014. to lose the romance and glamour of Georgia had the most top-grossing that four-letter word, film,” said Rich- pictures, with 17, followed by the United ard Baratta, executive producer of The Kingdom with 16, Canada with 13 and Irishman, Martin Scorsese’s next movie. California with 12. New York was sixth. Lack of shooting space and the lure Even among major motion pictures of better tax breaks elsewhere are the filmed here, most had relatively small lead culprits, say movie executives. budgets. Only Teenage Mutant Nin- “We get calls from features, and ja Turtles: Out of the Shadows, with a we did a Woody Allen movie this past $135 million budget, was considered a year,” said Alan Suna, chief executive blockbuster. The other major films were of Silvercup Studios. “But it’s hard to Collateral Beauty ($36 million), How to fit them in our schedule. We’re solidly Be Single ($38 million), Money Monster booked with TV.” ($27 million), Nerve ($19 million) and Though the state’s $420 million an- The Girl on the Train ($45 million). nual tax-incentive program is a strong “New York has become a TV town,” selling point, it covers only below-the- said Adrian McDonald, FilmL.A.’s lead line costs, such as crew salaries and researcher. “That’s not necessarily a production expenses. The tax incentive bad thing. The budgets on many one- in Georgia offers 30% on the entire hour shows rival that of large movies.” movie budget, including star salaries,

GETTY IMAGES An estimated $5 billion to $6 bil- and has no annual cap. — MKS

May 29, 2017 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20170529.indd 7 5/26/17 7:56 PM AGENDA WHO OWNS THE BLOCK REAL ESTATE

Better by the bridge Makeover at base of Brooklyn Bridge will improve access, aesthetics

A GLIMPSE of BY TOM ACITELLI things to come

$22 million city effort to spruce up the Brooklyn side of the Brooklyn 63 TILLARY ST. Bridge marks the first major upgrade of the entryway since the 1980s. The Concord Village was one of the first large-scale co-ops in Brooklyn when it was converted from Aplan calls for widening pedestrian plazas, recon- rentals in the 1980s. The 7-acre complex dates 203 JAY ST. figuring bike and traffic lanes, and adding green from 1950 and now includes 1,023 units in seven Manhattan-based developer AmTrust space to help improve access to the span and better 17-story buildings. Concord Village is one of the Realty bought this site for $17.6 mil- more affordable market-rate co-ops in that part connect the neighborhoods around it. lion in 2006. It topped out on the of the borough: The average sale price of the last construction of a 33-story complex in While much of the immediate area is domi- 65 deals was $430,934, according to Streeteasy. March of this year. Construction on nated by government buildings and courthouses, the new building, which will be called the surrounding neighbor- the Jay Street Residences, is sup- posed to wrap before the end of the hoods continue to sprout year. It will include 270 apartments, residential and commercial 225 CADMAN PLAZA EAST nine floors of office space and two retail spaces. developments. The federal government owns this 1,178,740- Just to the south of the square-foot U.S. District Court complex, current entryway—derisively which is actually two buildings joined by an atrium. The older of the two went up in the known as the cattle chute— early 1960s and has six floors. The second New York University is un- went up in the mid-2000s and has 15 floors. dertaking a 10-year, $500 mil- It has a much more modern look, thanks to the design by architect César Pelli. lion expansion of its Brooklyn campus. In Brooklyn Heights, to the west, a redevelopment of the 733,000-square-foot former headquarters of 225 JAY ST. the Jehovah’s Witnesses is expected. The Cathedral Basilica of St. James To the northeast, Dumbo has served as the seat of the Catholic Diocese of Brooklyn since 1972. The continues to add apartments, building dates back to 1903, when it 300 JAY ST. condos and office space—most replaced a cathedral built in 1853. recently through a trade of The City University of New York owns this 11-story, 563,145-square-foot another Jehovah’s Witnesses building, which houses the system’s building at 85 Jay St., which College of Technology. could accommodate a 1.1 million-square-foot development. The buyers in that $345 million deal included the 285 JAY ST. family firm of President Donald Trump’s son-in- CUNY College of Technology topped law and top adviser, Jared Kushner. out this 8-story, 360,000-square-foot academic building in June 2015. It The project is part of a larger $75 million re- replaced another City Tech–owned design that will include rehabilitating building and is directly across from the bridge’s historic arches, railings CUNY’s main campus, at 300 Jay St. 283 ADAMS ST. and masonry as well as reconfiguring access ramps from one lane to two The city owns this 6-story, 176,625-square- foot building. Once the site of a family court lanes to reduce traffic jams. The plan facility, it was converted in 2008 to house also includes creating wider side- two public schools: the Urban Assembly walks for pedestrians around nearby School for Law and Justice high school and the Urban Assembly Institute of Math and Cadman Plaza Park. Science for Young Women. The family court 340–350 JAY ST. The improvements, expected to is now next door, at 330 Jay St. be completed this summer, can’t Queens-based Muss Development and Leucadia Na- tional Corp., a Manhattan-based real estate and income soon enough. Average pedes- surance holding company, developed Brooklyn Renais- trian crossings on the bridge increased to 23,830 sance Plaza in the late 1990s. It includes a 32-story, per weekend day last year from 14,145 five years 1,775,697-square-foot commercial building (just over 1 million square feet of that is office space; the rest is a before. Cyclist trips increased to 3,042 from 1,983 garage). In 2014 California-based HomeFed Corp. did during the same period. ■ a $118 million stock deal with Leucadia that gave it a 49% ownership stake in the plaza. GOOGLE MAPS, NYC DEPARTMENT OF DESIGN AND CONSTRUCTION GOOGLE MAPS, NYC DEPARTMENT

8 | CRAIN’S NEW YORK BUSINESS | May 29, 2017

P008_CN_20170529.indd 8 5/26/17 1:56 PM AGENDA HEALTH CARE

Columbia’s new nursing facility seeks ‘iconic identity’ Computerized mannequins will ‘give birth’ and undergo surgery in 12 simulation rooms BY CAROLINE LEWIS

olumbia University School of Nursing’s new, light-filled glass building in Wash- ington Heights is a stark contrast to the neighborhood’s prewar brick buildings and Cthe converted dormitory that has acted as the school’s headquarters for the past 33 years. The $85 million facility will open for classes this fall with 12 high-tech simulation rooms, allowing nurses to practice in a range of realistic care settings before going out into the field. “The need and want was for a building that would actually create an iconic identity for the nursing school on the Columbia Medical Center campus, which they don’t have now,” said Nicholas Garrison, a partner at Manhattan architecture firm FXFOWLE Architects, which partnered with CO Architects in Los Angeles REAL-WORLD EXPERIENCE: to design the new space. Students will use high-tech Construction of the 7-story, 68,000-square-foot equipment to simulate a range of procedures. facility is on track to be completed by June 8. Trans- parency and collaboration are at the heart of its design. The building is sheeted in glass so that natural light can make its way into most parts of the school. The simulation rooms Everything are the only ones without natural light. Students will students will be videotaped working “ with computerized man- have to do in a nequins that “give birth,” clinical setting, are operated on, receive IVs and undergo a range they’ll have to do of medical procedures. here. But if they “Everything the students will have to do in congratulates make a mistake, a clinical setting, they’ll congratulates they can learn have to do here,” said congratulates Kellie Bryant, executive from it director of the Simulation Center and assistant professor of nursing at the school. “But here, if they make a mistake, they can learn from it and hopefully won’t make that mistake when they’re out in real practice.” The mannequin in the simulated operating room on the following retail lease transactions where nurse anesthetists will train is the most sophis- on the following retail lease transactions at its headquarters ticated, she said. It can undergo invasive procedures, at its headquarters and if given the right medication, it will fall asleep and on the following retail lease transactions its vital signs and heart rate will change. The simula- THEat GRAYBAR its headquarters BUILDING tion rooms are separated by one-way mirrors from 420 Lexington420 Avenue,Lexington New Avenue York, New York computerized control rooms where teachers can give New York, New York instructions and operate the mannequins. THE GRAYBAR BUILDING 420 Lexington Avenue Real-world simulation Landlord was represented by RobertNew J. Cyruli,York, New Esq. York & Stuart Bassel, Esq. of Cyruli Shanks Medical schools are starting to incorporate more Landlord was represented by simulations into their curricula, but “in terms of Robert J. Cyruli, Esq. & Stuart Bassel, Esq. of Cyruli Shanks size and equipment and everything we have here, I’d Landlord was represented by Robert J. Cyruli, Esq. & Jenna Bezoza, Esq. of Cyruli Shanks say we’re definitely ahead of the curve,” said Bryant. Nurses will also get to practice with actors known as Landlord was represented by standardized patients, who feign various illnesses. Robert J. Cyruli, Esq. & Stuart Bassel, Esq. of Cyruli Shanks The new facility is also designed to keep the school Landlord was represented by RobertLandlord J. Cyruli, was represented Esq. & Jenna by Bezoza, Esq. of Cyruli Shanks grounded in the community, said Garrison. Robert J. Cyruli, Esq. & Jenna Bezoza, Esq. of Cyruli Shanks The first-floor lobby can host health fairs and other community outreach events, and its clear glass exteri- or lets neighborhood residents look inside. Landlord was represented by The 200-person event space on the top floor fea- Robert J. Cyruli, Esq. & Jenna Bezoza, Esq. of Cyruli Shanks tures a wraparound terrace garden with a view of the attorneys at law FXFOWLE | Columbia Medical Center campus to the west and the 420 lexington avenue • new yorkLandlord, nycongratulates 10170 was represented | tel: (212) by: 661-6800 • Fax: (212) 661-5350

CO city beyond. ■ Robert J. Cyruli, Esq. & Jenna Bezoza, Esq. of Cyruli Shanks

Landlord was represented by: May 29, 2017 | CRAIN’S NEW YORK BUSINESS | 9 Robert J. Cyruli, Esq. & Jenna Bezoza, Esq. of Cyruli Shanks

P009_CN_20170529.indd 9 5/26/17 1:58 PM attorneys at law on420 the L exingtonfollowing Avenue retail • n leaseew York transactions, nY 10170 Untitled-2 1 5/15/17 3:12 PM teL: (212)at 661-6800 its headquarters • FAx: (212) 661-5350

THE GRAYBARattorneys at BUILDING law 420 Lexington Avenue • new York, nY 10170 Untitled-2 1 420 Lexington Avenue 5/15/17 3:12 PM teL: (212) 661-6800New York, • NewFAx :York (212) 661-5350

Landlord was represented by Robert J. Cyruli, Esq. & Stuart Bassel, Esq. of Cyruli Shanks

Landlord was represented by Robert J. Cyruli, Esq. & Jenna Bezoza, Esq. of Cyruli Shanks

Landlord was represented by: Robert J. Cyruli, Esq. & Jenna Bezoza, Esq. of Cyruli Shanks

attorneys at law 420 Lexington Avenue • new York, nY 10170 Untitled-2 1 5/15/17 3:12 PM teL: (212) 661-6800 • FAx: (212) 661-5350 AGENDA VIEWPOINTS

Ramping up deportations WHERE NYC’S UNDOCUMENTED WORK Services puts city’s economy at risk 40% Undocumented workers are crucial to many industries Operations, fabrication, labor 19% Technical, sales, administrative support THE TRUMP adminis- crimes, such as fraudulently obtaining dishwashers, a third of 16% tration’s stepped-up a Social Security card. all cooks, a quarter of Managerial, professional detentions of undoc- Some undocumented workers are all household help and 12% umented immigrants losing their jobs as the administration one-fifth of construction (and not just the mur- intensifies a crackdown on employers. workers. A Fiscal Policy Production, construction derers and rapists it More than 30 had to leave well-paying Institute study put these 10% says it is targeting) jobs at Tom Cat Bakery in Long Island workers’ economic output Farming is both a legal and City because ICE audited the company’s in the state at $40 billion. 1% GREG DAVID moral dilemma. But payroll records, a probe initiated during They pay a lot in taxes the question now is the Obama administration. too, something like $1.1 SOURCE: Fiscal Policy Institute whether—or maybe the right word is Behind these numbers are heart- billion a year. They can’t when—it will become an eco- wrenching human stories. get most direct government nomic issue. Different numbers tell us how benefits, but the services they use— where undocumented workers are As Crain’s reported earlier % crucial undocumented work primarily education for their children concentrated and the average yearly pay in May, the Immigration ers are to the economy. but also health care and criminal justice is a pretty miserly $35,000. Research and Customs Enforcement About 60% of the city’s for some—do cost money. It is less than by the Building Congress shows few of 8PORTION of NYC’s agency arrested 687 people in 575,000 undocumented immi the taxes they pay. them have health insurance. the New York area between workforce that’s grants work, making up 8% of Not all the numbers are comforting. So far the arrests have not been President Donald Trump’s undocumented the labor force, according to Some employers benefit too much from enough to affect the economy. But inauguration and April 29, a an in-depth report by a class at hiring undocumented workers because if they continue to increase—and if 31% increase over the same the CUNY Graduate School of they cheat them. Many restaurants fear causes undocumented workers to period a year ago. About a quarter had Journalism titled Invisible Hands: How pay less than the minimum wage— leave—the consequences could be far- no criminal record. While we don’t Undocumented Workers Shape the New sometimes a lot less, like $7 an hour. reaching. ■ know the others’ transgressions, those York City Economy. New research from the Economic arrested in other parts of the country Their importance to some sectors Policy Institute shows a similar GREG DAVID blogs regularly at often had committed relatively minor is eye-opening: They are half of all impact in nonunion construction, CrainsNewYork.com.

New York City must prepare for an automated future Technology will replace ever more workers, but there’s hope for humans BY JONATHAN BOWLES AND WINSTON C. FISHER

he writing is on the wall. Au- across a broad array of the city’s occupa- es by providing trainers and educators We must also improve and expand tomation, which has killed tions and sectors. with data on the jobs and skills that are workforce training to retrain displaced hundreds of thousands of fac- There are several things that pol- in demand. workers for promising career paths. tory jobs in recent decades, icymakers, educators, workforce- Federal policymakers should rethink More of the city’s workforce-training Tis poised to transform a much larger development practitioners and business the old work-study model, in which programs need to be informed by actual swath of the economy—and not just in leaders should be doing. students labor in the school cafeteria employer needs. At the same time, Con- the Rust Belt. Artificial intelligence and First, the city’s public schools and or library for minimum wage while at- gress ought to end decades of underin- other technologies will reduce jobs in a CUNY need to better align what they tending college. Use labor-market data vestment in workforce development. range of New York City industries, from are teaching with the skills that young instead to develop internships in fields Employers, particularly those ben- accountants and X-ray technicians to people will need in this new world. Too where employers are hungry for talent. efiting most from automation, have paralegals and taxi drivers. few high schools and colleges give stu- Congress and the Trump adminis- a responsibility to address economic The presidential election exposed the dents the critical-thinking skills that tration also should reform career and displacement. They can start by using steep personal toll of the employers consider fun- technical education. The Perkins Career their clout and resources to invest in manufacturing-job losses The next wave damental, and too many and Technical Education Act gives more 21st-century skill building. and the failure of policy- teach obsolete program- than $1 billion yearly to schools and col- The next wave of automation is al- makers to help workers of automation ming languages. Schools leges on a per capita basis, but too little ready upon us. What began on Mid- displaced by automation is already upon should be teaching New goes to schools preparing students for west factory floors is now knocking at and globalization. This Yorkers foundational growing, high-wage fields. the door of cities like New York, with time New York’s govern- us, with serious problem-solving, com- The de Blasio administration should serious consequences for workers in ment officials, business munication, and analyt- expand the pioneering Pathways in all kinds of industries. Waiting for the executives and civic lead- consequences ical and computational Technology Early College High School, economic pain cannot be an option. ers must not wait until it’s for workers skills to help them adapt a new model for career and technical Now is the time to get ahead of these too late. They should take to the rapid changes education where students in grades 9 seismic changes and prepare the city’s steps now to prepare the ahead. to 14 learn the traditional core subjects economy and workforce for the new workforce and mitigate dislocation and Just as major economic shifts in along with workplace skills that are key world of work. ■ the loss of jobs. previous eras prompted educational for a 21st-century career. Students grad- Roughly half of all jobs on Earth changes—like the postwar move from a uate with a high school diploma and an Jonathan Bowles is executive director could be automated simply by adapting K-8 system to mandatory high school— associate degree. Although IBM started of the Center for an Urban Future. current technologies, according to a re- government and private-sector leaders the first P-TECH school, numerous oth- Winston C. Fisher is partner at Fisher cent study by McKinsey & Co. Although should use the potential automation cri- er companies in health care, advanced Brothers and co-chair of the New York automation’s effects in the area are still sis to reform education policy. Technol- manufacturing, technology and finance City Regional Economic Development emerging, they are already being felt ogy can help solve the problems it caus- see the need for a talent pipeline. Council.

10 | CRAIN’S NEW YORK BUSINESS | May 29, 2017

P010_CN_20170529.indd 10 5/26/17 2:00 PM AGENDA THE LIST NEW YORK AREA’S LARGEST HOSPITALS Ranked by 2016 operating expenses

THE SCOOP TRENDS PROFIT TO POCKET CHARGE UP CLEANER BILL OF HEALTH Net profits for the top 25 hospitals on After a slow decline for several years, Crain’s list are at their highest level in the the top 25 hospitals had more than or the New York area’s biggest hospitals, 2016 was their best past seven years. 45,000 additional discharges last year. year in nearly a decade. Profits for the top 25 in the latest edi- Discharges (in thousands) tion of Crain’s annual largest hospitals list totaled $1.43 billion, Net prots (in millions) $1,500 1200 up 54% from the previous year. More than 80% of the hospitals Fenjoyed gains. $1,425 “There were one-time windfalls for some systems, but there were some 993 989 1012 very healthy indicators as well,” said Allen Miller, chief executive of COPE 900 969973 967967 Health Solutions, a consultancy. “There has been an increase in the com- plexity of cases, a reduction in lengths of stay and increases in overall $1,200 inpatient and ambulatory volume as more people signed up for Medicaid. These better performances led to better financial outcomes.” 600 After years of investments to transition from traditional inpatient services to outpatient care, hospitals appear to be seeing those efforts bear fruit. But Miller warned that there remains much work to do, even as $900 hospitals face a new hurdle: House Republicans’ replacement for the Af- fordable Care Act would slash the funding streams upon which hospitals 300 increasingly rely. “It would be devastating,” Miller said. “The legislation would severely cut Medicaid and damage the [state’s insurance] exchange. The hospitals’ ability to maintain their improvements and expand further is at risk. They $600 0 can’t rest on their laurels because they could easily slip back financially. ” 2010 2013 2016 2016201520142013201220112010 — GERALD SCHIFMAN SOURCES: Crain’s research and estimates

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12 | CRAIN’S NEW YORK BUSINESS | May 29, 2017

P011_P012_CN_20170529.indd 12 5/26/17 2:47 PM B:11.125” T:10.875” S:10.25” B:14.75” T:14.5” S:14” © 2017 salesforce.com,© 2017 inc. All rights reserved. Salesforce.com is a registered trademark of salesforce.com, inc., as are other names and marks.

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SFDC_Intuit_Crains_10p875x14p5_V4.indd None Date: 5-19-2017 12:54 PM By:Danica Himberg / Jeremy Zellers Printed At:None

Job info Approvals Fonts & Images Job None Art Director None Fonts Product Brand Copywriter None Salesforce Sans (Light, Semibold, Book) Project Crains PM Taylor Hilficker Studio Artist Danica Himberg Images Live 10.25" x 14" Proofreader None SFDC_Intuit_Illustration_Page_Biz_ 4 Trim 10.875" x 14.5" PMM None Journal.ai (123.99%), SFDC_Intuit_ Bleed 11.125" x 14.75" Headline_Page_V1.ai (122.57%), Notes Saleforce_Blaze_Your_Trail_ Folded Size None Logo_4C_0417.ai (126.94%) Gutter None None Panel Sizes None Inks Scale 1" = 1" Cyan, Magenta, Yellow, Black ROUND Substrate None MECH NOT FOR ACTUAL COLOR REPRESENTATION MUSIC BIZ | STAYING LIVE

SMITH has been a hit on the growing “health care circuit.”

ROCKING ON

With fewer venues fixture of the New York club scene for While plenty of new places have sprouted up to more than 40 years, Al Smith plugged replace the East Village’s CBGB, Midtown’s Roseland and shrinking pay, in his Crafter electric guitar at an Up- Ballroom and Williamsburg’s Glasslands Gallery, the New York’s musicians per East Side gig and proceeded to city reports that there has been a net decline in ven- demonstrate the power of live music. ues, though it’s unable to determine by exactly how are getting ever more A“Girls, give me that Broadway shimmy!” Smith much. Moreover, most of the newer clubs are small told the crowd as he cranked through his renditions and can’t pull in the crowds or revenue required to creative when it comes of Lou Rawls’ “You’ll Never Find Another Love Like pay performers a decent wage. For New York’s pro- to making a buck Mine” and Prince’s “Kiss.” fessional musicians, that means looking ever farther As the crowd rose from its seats at the Lott As- afield for work and, often, getting paid less. sisted Living Residence—where the average resi- “We have a tremendous cluster of musical talent BY AARON ELSTEIN dent is 87 years old—a woman named Dorothy put that’s finding it harder to get work that pays enough aside her walker and began to snap her fingers and to live here,” said Bill Harvey, a bass player from Wil- shuffle her feet. “It’s amazing that Dorothy is up,” liamsburg and the co-founder of advocacy group said Nicole Atanasio, Lott’s chief executive. “Her NY Is Music. “It would be a terrible loss for the city knees are killing her, and she’s dancing.” if that cluster went away. People flock to wherever Though Smith still performs frequently at Man- the music is.” (See “Southern Swing,” page 15.) hattan clubs—he’s booked to play The Iridium in Times Square June 30—most of his gigs these Hitting a high note days are on what he calls the health care circuit: By many measures the city’s music economy is nursing homes and assisted-living facilities where once again thriving after years of technology-fueled Smith plays roughly 30 times a month and gets paid turmoil. Warner Music Group in 2016 posted its around $150 for an hourlong set, better than triple first profitable year in a decade, and the Grammy the rate small clubs and bars typically offer. Over the Awards are returning to the city next January for course of a day, he often performs several shows. the first time in 15 years. Earlier this year Spotify “This is how I make my living,” Smith said. “I announced it would relocate its headquarters from THE FIRST don’t play clubs as much as I used to, partly because Stockholm to the World Trade Center, lured in part in Crain’s there aren’t as many of them as there used to be.” by $11 million worth of rent credits from the Cuo- series on He’s right about that. Since 2000 nearly 25% of mo administration. New York’s the city’s live-music clubs have closed, according At the same time, the number of New Yorkers changing to the Mayor’s Office of Media and Entertainment, working in music—including musicians, record music done in by a combination of rising rents, changing executives, publishers and others—has grown by

BUCK ENNIS, ISTOCK, COURTESY OF ORYCITYSTAGE industry tastes and tougher regulations. 5,000, to 31,000, since the dawn of the millennium,

14 | CRAIN’S NEW YORK BUSINESS | May 29, 2017

P014_P016_CN_20170529.indd 14 5/26/17 2:20 PM SOUTHERN SWING

ACROSS THE STREET from the Brill Building, once the hub of New York’s songwriting and music-publishing scene, another musical empire is setting up shop. The Grand Ole Opry is preparing to open a four- floor, 28,000-square-foot club and restaurant later this summer called Opry City Stage. The venue is being developed by Opry owner Ryman Hospitality Properties and Manhattan-based SPK Hospitality Group. The idea is to give Times Square tourists a chance to experience Nashville’s music and food without traveling south. “The place will be a calling card for Nashville culture,” said Lincoln Schofield, who is helping to book acts for the club. The venue will feature Opry-approved performers as well as local talent. The Opry’s arrival in the city is about more than just Nashville’s growing interest in New York’s club scene. Music City officials regularly visit to pitch musicians here on the benefits of relocating to a place with a dramatically lower cost of living, a distinguished music culture and a wide array of studios, publishers and promoters. “They’ll even help with health insurance,” said Bill Harvey, co-founder of NY Is Music, referring to a Nashville nonprofit that helps musicians buy coverage at group rates. “That’ll get your attention.” Last year New York–based Warner Music Group relocated 175 financial, legal and administrative jobs to Nashville in return for up to $2 million in cash incentives from that city’s government. Joe Conyers III, head of technology at Manhattan’s Downtown Music Publishing, said his company opened a Nashville office in 2015 with five people and is now weighing whether to relocate more jobs. For the price of one entry-level worker here, Conyers can hire three in Nashville. “We’ll give serious consideration to building a back office there,” he said. Courtney Ross, chief economic development officer at the Nashville Area Chamber of Commerce, considers adding more music jobs a top priority because they in turn help make the city more attrac- tive to the technology and fashion companies that might also consider relocating to Tennessee. She pointed to the 2014 decision of New York–based eyewear maker Warby Parker to open a corporate office and retail space in Nashville, creating 250 jobs there. “Music is big part of our brand and culture,” Ross said. — A.E.

tastes should check the 38-song playlist Cuomo recycle shows, dance parties, even children’s concerts. leased this year to celebrate the Spotify announce- “We’re open from 11 in the morning till 3 in the ment. It kicked off with Bon Jovi’s “Work for the morning,” Shapiro said. “That’s how it’s got to be to Working Man” and featured several classics from survive in the urban jungle.” local legends, including Simon & Garfunkel, Jay Z Priced out of Williamsburg, the former owners and Lady Gaga. There were four Billy Joel offerings, of Glasslands Gallery have been planning for five concluding with “We Didn’t Start the Fire.” years to open a 24,000-square-foot club in Bushwick Over at City Hall, the de Blasio administration called Elsewhere. Construction of the $3 million added music to the portfolio of the Mayor’s Office of project has taken a while, said co-founder Dhruv according to a March report examining the local Media and Entertainment, the agency that supports Chopra, and it takes time and money to get approv- music industry’s economic impact. film and TV produc- als from the commu- “Because of the city’s resilience and resourceful- tion, which has so far nity board, architects, ness, New York has weathered changes in the music pledged its marketing “OWNING A CLUB IS NOT building and health industry better than other cities and has come out muscle but not much inspectors, plus the on top,” proclaimed Julie Menin, media and enter- money. The city has SOMETHING YOU DO FOR police and fire de- tainment commissioner, in a press release accompa- declared June New partments. Once nying the report. York Music Month MONEY. YOU HAVE TO completed, Elsewhere Chest-thumping aside, the report also illustrated and as part of that LOVE MUSIC” will feature a perfor- how much tougher it has become for most of New agreed to pay for 2,000 mance space fitting York’s 12,000 working musicians to make a living. hours of rehearsal about 650 and anoth- Wage growth has shrunk by half since 2005, a pain- space, at a cost of $30,000. The media office is also er holding 250, plus a rooftop built for 600, with $20 ful shift in a field where the median yearly pay is just planning an online toolkit with contract templates, concert tickets to cover the cost of acts and support $30,000. The number of bands based here has also guides for copyrighting songs and ways for musicians staff. Profits will come from sales at the bar, which declined by a third since 2000, according to the city. to generate more revenue. will be open to people who aren’t attending shows. For several years NY Is Music has been lobby- “It takes an amazing amount of time, money and ing the state for a $25 million music-production tax House of blues patience to open a club,” Chopra said. “The red tape credit, hoping the incentive will help reverse the 20% Hard as it is for local musicians to make a living, explains why you’re seeing fewer new ones open.” decline in the number of recording studios over the it’s even more punishing to run a club here. Peter At the other end of the spectrum are hundreds past decade and give the music biz the same kind of Shapiro, who opened Brooklyn Bowl in 2009 and of places like Muchmore’s, a cozy Williamsburg jolt film and TV studios got from a 2004 tax-credit is perhaps New York’s most successful independent joint where acts typically play for whatever tips program that is now worth $420 million a year. club owner, says he couldn’t afford to open the place they can solicit from the audience. Owner Andrew Although the Legislature approved the music today. The startup costs alone would be in the neigh- Muchmore, a lawyer who is currently fighting the credit last year, Gov. Andrew Cuomo vetoed it af- borhood of $10 million, not including rent, which city over a 91-year-old law that curtails dancing (see ter opponents like the Citizens Budget Commission is nearly 10 times more than it was in 2007 along “Feeling Footloose? Hit the Bricks!” page 16), said argued that the industry doesn’t merit government Williamsburg’s main corridor, according to CPEX the bar sells about $500 worth of drinks and food per assistance because it’s historically entrenched in the Real Estate. That suggests commercial space the size day, which essentially leaves him unable to pay rent. city. The bill’s sponsor, Assemblyman Joseph Lentol, of Brooklyn Bowl would cost $7 million a year, com- Fortunately for Muchmore, he owns the building. has reintroduced the measure and has a few ideas for pared with $800,000 a decade ago. Shapiro wouldn’t “Owning a club is not something you do for how to bend Cuomo’s ear. comment on Brooklyn Bowl’s rent but said the venue money,” he said. “You have to love music.” “We should get performers he likes to talk to him is profitable because, in addition to hosting concerts The demise of clubs has made unlikely entre- about the bill,” the Brooklyn Democrat said. every night, it has a restaurant and a bowling alley preneurs out of many New York musicians. They Those contemplating the governor’s musical and is available for weddings, bar mitzvahs, motor- CONTINUED ON PAGE 16

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P014_P016_CN_20170529.indd 15 5/26/17 2:21 PM MUSIC BIZ | STAYING LIVE BLANK wasn’t loving the local club scene, so include Dave Street, who in the 1980s worked at a she started punk clothing store called Natasha’s on St. Marks her own event. Place and wrote songs for The Undead, a spinoff of the notorious horror-punk band Misfits. The lyrics to one of his songs read: “We were raised by a com- puter/Never had no mom or dad/And the rest of our life story is surely just as sad.” Street hasn’t played any clubs for about four years. But he’s still getting steady work performing in schools with catchy tunes about recycling, thanks to a grant from the nonprofit New Jersey Clean Communities Council. His songs today go like this: “Recycle, reuse it, keep it in the loop/Just like playing a game of hoops.” “It’s not what I imagined doing back when I opened for the Ramones,” Street said. “But sometimes you need to make your own opportunities.” Tasha Blank has learned to live by those words. A dance fan who studied at NYU, Blank wasn’t happy with the vibe at local clubs, which often required squeezing next to intoxicated partiers while waiting all night for a top-shelf DJ to hit the booth. Blank said up to 500 people attend each gathering. ses, a group that had a few disco hits in the 1970s. He Blank, 30, decided to teach herself how to spin discs She plans to make The Get Down a weekly happen- performed at the Theater at Madison Square Garden and scored a weekly gig at Verboten, a popular Wil- ing starting June 1 and expand the brand to other with A Group Called Slim, which played the sort liamsburg dance club. That is, until authorities shut cities. She’s also hired an assistant to help manage of rock-funk fusion pioneered by Sly & the Family the place down last year, after the owner allegedly the growing enterprise. “I’m so not a business per- Stone and later popularized by Prince. failed to pay $360,000 in sales taxes. son,” Blank said. “But I just incorporated.” “The same guys who signed Prince were checking Blank, who was also owed money by Verbo- me out,” he said. ten, struck out on her own. She launched The Get A new spin After getting married, Smith settled into an office Down, a three-hour event where people dance in an Smith had no idea there was money to be made job at Harlem’s now-defunct North General Hospi- alcohol-free room that migrates from club to club playing in nursing homes until a few years ago. As a tal. But the call of music was impossible to resist, every other Thursday. Tickets go for $20 online, and teenager the Bronx native played bass with The Jone- and after 20 years away, he got in touch with agent Sam McKeith, who represented Stevie Wonder in the 1970s and once booked Bruce Springsteen at The Bottom Line, a revered Greenwich Village club that FEELING FOOTLOOSE? HIT THE BRICKS! closed in 2004. Soon Smith was performing at places like the Upper West Side’s China Club and downtown at Arlene’s Grocery and Wicked Willy’s. IF YOU EVER GO TO MUCHMORE’S in Williamsburg to hear a band, feel free to snap your It was great to be back in the clubs, Smith said, but fingers and tap your feet. You could even sway around a bit. But dance? The city might have a problem tougher to get paid. Bigger venues like the China Club with that. In 2013 an inspector for the Department of Consumer Affairs ticketed the bar for allowing custom- paid a sliding scale, usually starting at 60% of the first ers to dance in violation of a 91-year-old law that permits dancing only in licensed cabarets. Owner $1,000 in ticket revenue, 70% of the next thousand Andrew Muchmore believes the law is unconstitutional and has sued the city in a case that is pending and so on, a rate that pays terrifically on good nights in Brooklyn federal court. and terribly on rainy ones. But rising rents were forc- “This is the silliest law on the books,” Muchmore said. ing out places like the China Club, which closed in Truth be told, the cabaret law is seldom enforced. Only about 120 of New York’s 25,000 restaurants 2010 after relocating to Midtown. That forced Smith and bars have a cabaret license, and according to city records, no establishment has been sanctioned to work at smaller venues that typically offered a flat for violating the rules in at least the past year and a half. Nonetheless, the law abides. fee for a night’s work—about $150—plus tips and a And the statute has proved to be a useful weapon for those who want to close establishments meal at the bar. deemed objectionable. Mayor Rudy Giuliani used the cabaret law to justify shuttering several dance In response to those squeezed revenues, Smith clubs in the 1990s. Mayor Michael Bloomberg tried to have it repealed in 2003 and 2008, but nothing slashed expenses. He ditched his group and his road came of those efforts. crew to become a one-man band. He now plays solo Enforcement aside, keeping the restriction on the books has consequences. Pedro Giraudo, a along with prerecorded beats and added a harmoniz- prominent tango-orchestra leader, said the law makes it harder for him to find work because clubs and er that makes it sound like he has backup singers. restaurants worry they might get into trouble. “When an established tango musician is performing, and “My costs are lower, and I still have my sound,” people are present who like tango music,” Giraudo said in an affidavit filed as part of Muchmore’s case, said Smith, who lately has been taking gigs farther “it is virtually inevitable that people will dance.” from Manhattan, frequently playing at the Chelsea The cabaret law was enacted in 1926, at the Craft Brewing Co. in the Bronx and seaside restau- height of the Harlem Renaissance, and was in- rants in Freeport, Long Island. tended to crack down on after-hours jazz clubs, To broaden his audience beyond clubs and bars, specifically those that allowed white and black Smith reached out to agent Lee Perry Gross, who people to dance together. has a roster of 80 acts and books 1,800 gigs a year in “There has been altogether too much run- health care facilities around the area, plus another ning ‘wild’ in some of these night clubs,” a City 200 at weddings and corporate events. “I told Al to Council committee wrote at the time. “These learn Sinatra and Gershwin songs,” Gross said. “He ‘wild’ people should not be tumbling out of shouldn’t play only funk.” these resorts at 6 or 7 o’clock in the morning to Smith got the message and started seasoning his the scandal and annoyance of decent residents senior sets with Frank Sinatra’s “My Way” and Louis on their way to daily employment.” Armstrong’s “Hello, Dolly!” The audience of 25 at Lott Presiding Judge Roslynn Mauskopf said that, Assisted Living sang along. A few held one another while Muchmore has “plausibly challenged” the close and swayed on the dance floor as he concluded law, there is a 1989 U.S. Supreme Court ruling with Motown favorites “My Girl” and “Respect.” that “social dancing” isn’t free speech and isn’t OUT OF STEP: Residents cheered with delight when the hour- protected by the First Amendment. A spokes- Muchmore says long set ended and implored Smith to return soon. man for the city had no comment on the suit, the cabaret law is unconstitutional. “He really makes us move,” said recreational as- which it is contesting, except to say, “We will sistant Noemi Cancel. review any feedback on this issue.” — A.E. “If I don’t move people,” Smith said later, “I hav-

BUCK ENNIS en’t done my job.” ■

16 | CRAIN’S NEW YORK BUSINESS | May 29, 2017

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2017 Heritage Healthcare Innovation Awards

Meet New York’s Leading Healthcare Innovators

Left to right: Mark Wagar, president, Heritage Medical Systems; Dr. Carl Nathan, R.A. Rees Pritchett professor of microbiology; chairman, Department of Microbiology & Immunology, Weill Cornell Medical College; Karen Ignagni, president and CEO, EmblemHealth; Dr. Richard Merkin, president and CEO, Heritage Provider Network; Dr. Nora V. Bergasa, professor of medicine, New York Medical College; chief of medicine, PAGNY/NYC Health + Hospitals/Metropolitan; Dr. Steven M. Safyer, president and CEO, Montefiore Medicine; Jill Kaplan, vice president & publisher, Crain’s New York Business; Gil Addo, CEO and co-founder, RubiconMD

he Heritage Healthcare Innovation Awards honor 25 exceptional A distinguished panel of independent health experts judged five award categories: individuals who are not content to accept the status quo in healthcare. TThese people are visionaries who improve treatment, transform Innovation in Healthcare Delivery Award processes, lower costs and push the boundaries of science. As a group, they Recognizing an innovator in the development of new modes of diagnosis, just do things differently, and it is the collective health of New Yorkers that treatment and care who actively improves the delivery of services and quality benefits from their innovations. of healthcare.

To recognize these individuals, Heritage Provider Network (HPN), a leading Healthcare Leadership Award physician-led managed care organization, created an awards program in Recognizing a leader who has made a significant impact in their healthcare 2016. This year’s winners and finalists were honored at an awards event in field. This forward thinker has forever changed the way care systems work Manhattan on May 22. through new models, processes and pathways.

Mark Wagar, president of Heritage Medical Systems, calls the awards “our Healthcare Organizational Leadership Award way of stirring the pot.” Honoring an organization that has fundamentally changed how healthcare is delivered. This organization has created, or championed new ways of thinking Wagar explained that a core philosophy championed for decades by and doing, uniting diverse constituencies to work together. Richard Merkin, MD, president and CEO of HPN, is that “we may think we’re good, but we’re not good enough.” Innovators in Healthcare Award Highlighting cutting-edge applications of technology and up-and-comers in the “If you are not improving affordability and access, you are not doing enough,” healthcare industry. These breakthrough innovators are making significant contribu- he said. “You must be searching for the next innovation that makes health tions in the areas of technology, research or new approaches to healthcare systems. care delivery affordable and sustainable in New York and the nation.” Research Investigators in Translational Medicine Award The 2017 Heritage Healthcare Innovation Awards recognize the best of Recognizing an individual based on the most significant quantitative results today’s healthcare clinicians, administrators and researchers who are making achieved by accelerating the transition of novel and innovative diagnostic tools measurable improvements in outcomes, access to care, the quality of care and and treatments to patients. long-term affordability.

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Heritage Innovation in Healthcare Delivery Award Recognizing an innovator in the development of new modes of diagnosis, treatment and care, who actively improves the delivery of services and improves quality of healthcare.

Nora V. Bergasa, MD, professor of medicine, New York Medical College; chief of medicine, PAGNY/ FINALISTS NYC Health + Hospitals/Metropolitan Manmeet Kaur, executive director and founder, City Health Works As leader of the department of medicine at a New York City public hospital, Dr. Nora Bergasa treats Patients trust community health coaches because they patients, teaches medical students and residents, share a neighborhood, a culture or perhaps a disease. That and inspires the department’s research efforts. trust is a strong motivator for behavioral change. Manmeet Recognized internationally for her research work Kaur founded City Health Works in 2012, patterning a low- on liver disease, this hepatologist is committed to cost paradigm of care after the community health innovations she had seen in developing countries. CHW trains locals rethinking how patients are treated and students to provide evidence-based personalized coaching and care are trained. coordination for patients in Harlem with diabetes, hyperten- sion and asthma. “Patients have someone they can relate to,” “It all has to do with innovative ways to deliver said Manmeet Kaur. “Who the messenger is really matters.” care,” she said. “We have revolutionized the way we CHW’s model shows measurable improvements in quality care for these patients.” and costs. Preliminary data from 200 Harlem patients show a mean 1.6 point reduction in A1c levels and cost savings of $600 per member per month. CHW has raised $4.4 million She reorganized the department of medicine to and is signing contracts with health systems and insurers. be more efficient by improving the distribution of Coaches that save lives and money, she said, “are not a nice- WINNER patients, who previously were assigned to different to-have add-on, but should be the norm in providing care.” care teams based on where beds were available. She directed patients to beds based on which Chris Norwood, founder and executive director, Health doctor was treating them. People: Community Preventative Health Institute

When Chris Norwood founded Health People in 1990, it was a “Patients admitted to Dr. X will be admitted to community-based peer education organization with a mission Dr. X’s ward, instead of all over,” said Bergasa. “Rounds are expeditious, no walking to other floors.” to assist South Bronx residents overwhelmed by AIDS and chronic diseases. Today, Health People’s model is to tap the In another innovation, Bergasa sends patients with both mental health and hepatitis-C conditions to the community for people who can help their neighbors navigate behavioral health department instead of the hepatitis clinic. This population is at higher risk for acquiring their health conditions, especially asthma and diabetes, viral hepatitis. drawing strength from shared backgrounds that can include incarceration, substance abuse and limited education. Nor- wood’s group is playing a role in the Medicaid reform initiative “It is difficult for some patients with a dual diagnosis or comorbidity to get to the clinic; and for a hepa- DSRIP by fostering cooperation with clinical providers. To have tologist like myself, going to the behavioral health service lets us study patients with alcohol abuse and support in recruiting peer educators, training them and get- other diseases that need to be addressed. It really improves the care.” ting them into the field “was virtually undoable before DSRIP. People have to be willing to work together,” said Norwood. “The Bergasa also established a discharge clinic to help patients adhere to medication regimens, follow care waste of not having community groups used in constructive instructions and keep appointments. The clinic has slashed readmissions rates. It also exposes physi- ways in public and community health is tragic.” cians-in-training to caring for patients post-discharge. Tim Peck, MD, Co-founder and CEO, Call9

Public hospitals serve an essential role in caring for New Yorkers and training doctors, a mission that The innovation behind Call9 is straight forward: Why take a Bergasa cherishes. “We immerse ourselves in the care of the patient, at the bedside and in the clinic. To nursing-home resident to the emergency room when you be able to work like that is a privilege.” really don’t have to? Call9 has implemented that concept flawlessly. Of some 1,300 patients treated since 2016, its first full year of operation, 78% avoided the ER. In 2017, Call9 inked contracts with three big insurers. Call9’s software and technology let a bedside “clinical-care specialist” perform testing, such as lab work, and send real-time results to Call9’s off-site staff of ER physicians. Streaming video of a nurse’s hand at bedside lets the ER doctors guide an ultrasound or EKG. “The technology allows for physicians to be on their laptops anywhere in the country and do critical care medicine or CPR. It allows us to treat at bedside and see multiple patients at once.” said Dr. Tim Peck. “This is a whole new way of practicing medicine.”

Steven Katz and Jeffrey Schor, MD, founder and co-CEOs, PM Pediatrics

PM Pediatrics opened in 2005 in Syosset, L.I., and now has 19 pediatric urgent-care sites, with further expansion fueled by a private equity partner. Some 40 full-time physicians honed their ER skills in a pediatric residency as well as a three-year pediatric emergency medicine fellowship. Such advanced training in emergency care is one reason why only 1% of the company’s patients end up transferring to a hospital. PM Pediatrics innovated the urgent-care model through a focus on the patient experience, “from designing our office to be friendly, to making the kids feel calmer,” said Steven Katz. Elements revolve around comfort: all rooms have TVs to distract the kids. Dr. Jeffrey Schor, who runs clinical operations, headed a pediatric ER for 10 years, the genesis for PM Pediatrics. “We gave very good care, but how we delivered it was terrible,” he said, citing three-hour wait times that already had soured the patient experience. One innovation was Michael Chambers, PAGNY; Dr. Nellky Ramirez, NYC Health + Hospitals; Dr. Nora V. Bergasa; to make strong relations with the primary care community Dr. Ronnie Gorman Swift, Metropolitan; Alina Moran, Metropolitan; Mirta Palacios, Metropolitan; sacrosanct. “We open late and close late, designed in part not Dr. Consuelo Dungca, Metropolitan; Dr. John T. Pellicone, NYC Health + Hospitals/Metropolitan to compete directly with pediatricians,” said Schor.

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Heritage Healthcare Leadership Award

Recognizing a leader who has made a significant impact in their healthcare field. This forward thinker has forever changed the way care systems work through new models, processes and pathways.

Karen Ignagni, president and CEO, EmblemHealth FINALISTS Karen Ignagni joined EmblemHealth in September Joseph G. Conte, executive director, 2015, a year when underwriting losses at the Staten Island Performing Provider System nonprofit’s two insurance units, GHI and HIP, were $128.7 million, an improvement over the dizzying New York’s experiment to overhaul healthcare delivery, $485.8 million loss in 2014 before her arrival. a Medicaid program known by its acronym DSRIP, is Emblem’s delicate health, and its survival as the ambrosia to a guy like Joseph Conte. His mission is to insurer of 3.2 million people, is in Ignagni’s hands. improve access and quality of care, and DSRIP gives him the financing and the structure to innovate. “The model will drive a lot of change. People will learn how And so Ignagni is transforming Emblem’s to cooperate in a way that allows them to create a operations so that it can become a more nimble, better outcome of care than was available before,” said innovative company. “You need technology to be Conte. He brings community organizations into the care agile,” said Ignagni, noting Emblem has upgraded to delivery system and trains their workforces, as those cloud-based technology and is improving access to grass-roots groups know best how to reach the most information in real time. difficult patients. His group’s analytic platform offers data visualization by zip code, even down to the block level. That allows for a targeted approach to tackling Ignagni has had a very measurable impact on population health. “We don’t have to focus on asthma Emblem’s operational streamlining. In the first everywhere on Staten Island if we know it is prevalent in WINNER quarter of 2017, HIP’s administrative expenses four zip codes,” Conte added. plummeted by $42 million from the year-earlier period, and GHI’s dropped by $29 million. Paloma Izquierdo-Hernandez, president and CEO, Urban Health Plan One innovation is a diabetes prevention program Urban Health Plan, a network of community health cen- that received full recognition from the Centers of Disease Control and Prevention. “I’m proud of the ters that cares for 78,000 patients, excels at integrating program itself and the impact is has on the communities we serve,” she said. Emblem offers the diabetes case management and social services into primary care. initiative to members as well as to the general population through its Neighborhood Care sites in Harlem It runs a school, a workforce training program, a geriatric and other locations, as well as through AdvantageCare Physicians, its affiliated primary and specialty clinic—a myriad of supports for a population marked by care medical group. social determinants of health. The common thread in Urban’s programs, said Paloma Izquierdo-Hernandez, Ignagni also notes the cutting-edge partnerships Emblem has developed with local providers. She said is quality and organizational excellence. In 2005 she launched a unit that created internal performance im- Emblem’s “entire HMO plan is value-based risk-sharing with providers,” including Montefiore Medical provement teams to test and implement innovative ideas Center and Northwell Health. There also is a new partnership with Heritage Provider Network, in which that improved both the quality of care and operational Emblem will offer primary care doctors back-office support and access to technology and data. For processes. An asthma program that embeds asthma doctors who are interested in signing up, the option relieves operational pressures “and allows them to prevention into each primary care visit, for example, stay in their practices” and independent, said Ignagni. triggered a plunge in hospitalization rates for asthma. “I realized we can really bring change if we embrace this She sees her mission at Emblem as “transforming a health plan that has an 80-year legacy into what new way of doing things and the concept of truly transforming an organization, and not just making changes working families in New York will depend on for another 80 years.” that are additive,” she said.

Anne Kauffman Nolon, MPH, president and CEO, HRHCare Community Health

Anne Kauffman Nolon has nurtured HRHCare Community Health, one of the state’s largest networks of community health centers, from a single primary care site in Peekskill to a network of 28 sites in the Hudson Valley and Long Island. Together they serve nearly 138,000 primarily low-income patients. Access to quality care is at the center of HRHCare’s mission. Nolon, who grew up on a farm, launched migrant health centers to address the complex needs of thousands of seasonal workers in the communities she serves. “I’m so proud of the work we’ve done with agricultural workers. They are essential to our economy, but we put so many stresses on the people who put food on our table, both farmers and workers,” said Nolon, who has concentrated on health policy and agricultural workers for many years. “I’m pretty much an aggie in healthcare.”

Dr. Pablo Rubinstein, vice president, New York Blood Center; program director, National Cord Blood Program

Since the late 1980s, Dr. Pablo Rubinstein has championed the public banking of cord blood, an innovation that has saved countless lives. He founded the world’s first public cord blood program at the New York Blood Center in 1992, and it remains the world’s largest repository of cord blood units. Rubinstein has made his life’s mission the distribution of life-saving cord blood that is received by patients who need a stem cell transplant from an unrelat- ed donor as a source of hematopoietic cells. Such patients commonly have leukemia, lymphoma or other blood or immune system conditions. The NYBC, said Rubinstein, has “participated in extraordinary advancements in cord blood stem cells and, most recently, in iPSCs (inducible pluripo- tent stem cells) with our first clinical trials anticipated to Mark Wagar; Dr. Michael Stocker; Karen Ignagni and Stephen Berger, Odyssey Investment Partners restore sight in those blinded by macular degeneration.”

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Heritage Healthcare Organizational Leadership Award Honoring an organization that has fundamentally changed how healthcare is delivered. This organization has created or championed new ways of thinking and doing, uniting diverse constituencies to work together.

Steven Safyer, MD, president and CEO, Montefiore Medicine FINALISTS

Lindsay Farrell, president and CEO, Open Door Family When the New York State Department of Health Medical Centers needs help in rescuing floundering hospitals, for years it has turned to Montefiore Health System. For four decades, Open Door has helped the poorest res- The 35,000 employee Bronx behemoth is willing idents of Westchester and Putnam counties—including a to do what is right for healthcare in New York, even large immigrant population—gain access to primary care. if that means taking on struggling facilities or its Its focus on prevention has helped generations of families education partner, the Albert Einstein College of stay healthy. Open Door serves as a medical home to nearly 50,000 residents annually, and has just expanded to Medicine. an additional site in Mamaroneck. The nonprofit believes that when you help one person, you can lift up an entire Montefiore’s stated mission is the pursuit of community. It calls that the “Open Door Effect:” as its “clinical excellence—breaking new ground in patients become better-equipped to manage their health, research, training the next generation of healthcare there are fewer school and work absences and visits to the leaders and delivering science-driven, patient- emergency room. Patient advocates are embedded in the centered care.” It is best known for its commitment care team, making sure patients have referrals to housing, food pantries and other services. “We’re so focused on the to transforming healthcare delivery. It has shifted social determinants of health, and that is very important care to ambulatory facilities to keep patients out as we head into a value-based world,” said Lindsay Farrell. WINNER of hospitals; it has closed 250 unneeded beds in favor of building up outpatient facilities. It has Christopher D. Hillyer, MD, president and CEO, New long embraced population health in the Bronx, York Blood Center; professor, Department of Medicine, and more recently has spread its network to Weill Cornell Medical College Westchester and up the Hudson Valley. Just under New Yorkers are accustomed to rolling up their sleeves for 400,000 patients are in risk arrangements, and the New York Blood Center, which for 50 years has provid- 1,500 are cared for in Montefiore’s care management program. ed a safe supply of blood or stem cell products for more than 2,000 people a day, as well as for local hospitals. “For more than 20 years we’ve been moving away from fee-for-service and toward value, keeping people But the most innovative aspects of the NYBC’s mission away from hospital beds,” said Dr. Steven Safyer. are behind the scenes. It spends $25 million annually on research and development, with 100 scientists conducting studies in the fields of hematology, blood banking and Montefiore serves a challenged population: 85% insured by government programs. Many are transfusion medicine and cellular therapies. The NYBC immigrants, most are low-income and bear the marks of the social determinants of health. It is an also has a hand in the development of products, technolo- institution “that combines the best of Einstein—its research and science and clinical innovation—with gies and services related to blood, and trains researchers one that makes the case that you can care for all people and not just people of means,” said Safyer. and physicians. Its research branch focuses on transfusion medicine, hematology, infectious disease, epidemiology In January 2017, after the first Trump ban on immigration, Safyer wrote in an open letter to his Bronx and cellular therapy. “We’re one of the most innovative community of immigrants that “the ideals upon which our nation was built are being questioned. We have of blood centers in the history of blood centers,” said Dr. Christopher Hillyer. “Innovation is part of our culture.” achieved greatness as a country in part due to the hard work, dedication and sacrifice of generations of immigrants.” Feygele Jacobs, DrPH, president and CEO, RCHN Community Health Foundation

Community health centers are a lifeline for care for many high-need communities in both rural and urban areas, and that is what makes Feygele Jacobs’ job so critical. RCHN Community Health Foundation provides direct support for health centers that care for a collective 7.6 million people, including 2 million New Yorkers. “Health centers have unique challenges and work in a very difficult environment,” said Jacobs. “We help them be better positioned to do their jobs more effectively.” RCHN’s projects assist the centers in expanding capacity or strengthening operations. One local project, in China- town, targets the growing rate of smoking among Asians. An RCHN-funded project combats infant mortality at another center and, upstate, a health center is address- ing barriers children face in accessing care. The nonprofit has provided $15 million in funding to centers. It also conducts policy research to gather empirical evidence on best practices for better health outcomes.

Daniel Reingold, president and CEO, RiverSpring Health

The mission of the Hebrew Home, rebranded in 2015 as RiverSpring Health, is to transform the landscape of aging “through innovation, compassion and the highest level of care.” Some 11,500 older New Yorkers get care daily from the $700 million nonprofit. While its geriatric care is based on clinical excellence, it is driven by innovation. Perhaps the most important among them is an initiative that addresses elder abuse, “an epidemic in this country,” said Daniel Reingold. RiverSpring established the nation’s first sexual expression policy, in 1995, to pro- actively deal with the reality that nursing-home residents are consenting adults. Another innovation, for those with Alzheimer’s, stimulates long-term memories through sports therapy. Placing a baseball in a resident’s hand Dr. Richard Merkin, Dr. Steven Safyer, Jill Kaplan and Mark Wagar and talking about sports, Reingold explained, “brings back memories of days gone by.”

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Heritage Innovators in Healthcare Award Highlighting cutting-edge applications of technology and up-and-comers in the healthcare industry. These breakthrough innovators are making significant contributions in the areas of technology, research or new approaches to healthcare systems. Gil Addo, CEO, RubiconMD FINALISTS Gil Addo has taken an ordinary aspect of healthcare—a primary care doctor calling a specialist Paul Coyne, DNP, APRN, president and co-founder, for a consult—and recast it into the digital world. Inspiren RubiconMD is an eConsult service that connects Born with a heart defect, and later suffering a major primary care docs to specialists with same-day stroke at 22, Paul Coyne has been inspired by his ex- access, saving the healthcare system money by perience as a patient. He earned a doctorate in nursing avoiding costly referrals and testing. The compa- practice, a bachelor’s and master’s degree, and a ny’s platform has facilitated 20,000 eConsults. combined MBA in healthcare management and master’s degree in finance—five degrees in four years, before “We haven’t created anything new. Doctors talk age 30. Inspiren seeks to improve the patient experience through tracking technology. Inspiren developed to each other all the time,” Addo said. “But as we wireless hardware that is installed by a patient’s bed. A move to a digital world, RubiconMD has built a prototype is complete, and the project is moving to the digital work flow so doctors can get opinions fast- manufacturing stage. The software will be able to track er, and we enrich the interaction by gathering a lot such data as rounding and bedside reporting status, the of searchable, rich data that would have been lost duration and frequency of interactions with the patient if it had been just a conversation taking place.” and care intensity level based on total staff time with patient. Coyne said he hopes to run six-month pilots of the product at two sites, and to raise at least $1 million WINNER Founded in 2013, the Manhattan company now in funding. has 3,000 primary care providers on its web- based platform. The eConsults let the doctors Arun Gupta, CEO, Quartet quickly get on-demand expert advice on complex cases. It is a model that payers and at-risk entities Arun Gupta founded Quartet in 2014 to boost access are eager to experiment with. Clients include to mental health treatment through better integration with primary care. Quartet partners with insurers and health systems, insurers and community health centers in 33 states. Earlier this year RubiconMD physicians to connect patients with care, assisted by partnered with the University of California, San Francisco to connect providers at Zuckerberg a technology platform rich with analytics and tested San Francisco General Hospital with UCSF specialists. For health centers in rural areas, the model methods of improving outcomes at a lower cost. The gives safety-net clinics critical access to specialty networks. data-centric, mission-driven company has raised nearly $50 million from investors who recognize innovation in “The core service, same-day consults, hasn’t changed, but we’ve democratized access to expertise by the model: giving primary care providers data that lets getting patients to the right specialist for their condition,” said Addo. them identify patients with mental health needs. The Quartet collaborative care model has the potential to lower costs by $5-$10 per member per month. “I see 53 RubiconMD built a business model where payers or whoever is at risk for the patient is charged a flat million people walking around with mental health issues fee. The company pays the specialist from that fee. RubiconMD has contracts with regional plans and and, for me, it’s a matter of civil rights, the stigma will be announcing its first national contract soon. The company has attracted nearly $6 million from against diseases of the brain,” said Gupta. “The status investors so far. quo is not OK. As a nation, we need to look at mental health in a different way.”

Michael Simmons, CEO and founder, CredSimple

Launched in 2013 to transform credentialing for healthcare providers, CredSimple revolutionizes an inefficient process through its innovative data science algorithms. Michael Simmons, a software and business process engineer, used technology to drastically cut credentialing time to around five days from the industry standard of 60-90 days. The technology CredSimple invented takes data from different sources, said Simmons, aggregates it and retrieves information with a 99% verification that the data—licensing, education, malpractice, etc.— is correct. Clients include the insurer Oscar and the 1199 SEIU Funds. Credentialing is a key process that must take place before a provider sees patients. “What we are offering to the market is a way to do it faster and easier than in the past,” said Simmons. “That allows providers to spend less time on administration and more on what matters: the patients.”

Matthew Loper, CEO, Wellth

Why don’t patients do as they’re told? Behavioral economics offers some explanation. Diabetics know that taking metformin will lead to a happier, longer life. But that’s in the future, while just in reach happens to be a candy bar. “You have to overcome present bias,” explained Matthew Loper. Wellth helps patients change their behavior by applying behavioral economics through health technology. Patients are paid to adhere to their medication and care plans. “We’re rewarding people for what they should be doing anyway,” said Loper. Wellth mitigates risk for insurers and risk-bearing providers by charging them only when a patient is adhering to a care plan. Results from pilots are encour- aging: $2,000 to $3,000 per patient in savings, with a 20-40% drop in readmission rates for heart patients. Gil Addo, Michael Simmons and “We are very focused on creating tremendous ROI for Jeffrey Sachs, Sachs Policy Group our customers,” said Loper.

Heritage Winners Recap MECH.indd 5 5/24/17 1:21 PM SPECIAL ADVERTISING SECTION OF CRAIN’S NEW YORK BUSINESS SPECIAL ADVERTISING SECTION OF CRAIN’S NEW YORK BUSINESS

Heritage Research Investigators in Translational Medicine Award

Recognizing an individual based on the most significant quantitative results achieved by accelerating the transition of novel and innovative diagnostic tools and treatments to patients.

Carl Nathan, MD, R. A. Rees Pritchett Professor FINALISTS of Microbiology and chairman, Department of Microbiology & Immunology, Weill Cornell Medical Piraye Yurttas Beim, PhD, founder and CEO, Celmatix College Founded in 2009 by Piraye Yurttas Beim, Celmatix has To reengineer a process is perhaps one of the most transformed clinical approaches to fertility through basic of innovations. It is also among the hardest. genomics and big data: fertility is no longer defined by age But Dr. Carl Nathan relishes innovating the process alone. This molecular biologist passionately believes that of drug development. An expert in microbiology major advances in approaches to infertility will be driven by the intersecting of clinical and genomic data. Celmatix and immunology, he encourages academics and developed Fertilome, a genetic screen that reveals genetic pharmaceutical industry experts to collaborate. factors that can impact the ability to conceive; and Polaris, Research has long been conducted in silos. But fertility prediction software that is an analytic tool that this new cooperation among the groups has low- guides fertility specialists in personalizing a patient’s ered costs and created “a more efficient manner of treatment strategies and IVF protocols. Millennials have early-stage drug development,” said Nathan. “This “really embraced technology and genetics,” said Beim. is a model for making drugs more affordable.” Jeffrey V. Ravetch, MD, PhD, Theresa and Eugene M. Lang Professor, The Rockefeller University At Weill Cornell Medicine, Nathan helped launch the Tri-Institutional Therapeutics Discovery In- Dr. Jeffrey Ravetch has spent decades researching WINNER stitute. The collaborative model, with Rockefeller function and control mechanisms of antibodies within University and Memorial Sloan Kettering Cancer the immune system, leading toward the eventual Center, translates research discoveries from the development of therapeutic antibodies as innovative treatments. Antibodies can activate as well as inhibit the “bench to the bedside” through a partnership with immune response. “To understand how antibodies work Takeda Pharmaceutical Co. By making proof- as a therapeutic we have to understand how they work of-concept studies more efficient, Translational medicine at the Tri-I TDI can hasten the evaluation of in the body,” said Ravetch. His lab uses mouse modeling therapeutic promise. to identify the genetic components that cause immune system cells to respond to specific antibodies for certain Nathan also shepherded the launch of Tri-I TDI’s for-profit counterpart, Bridge Medicines, which adds diseases. His research centers on how defects lead two investment firms to the original partners. Research projects from Tri-I TDI are given support to move the immune system to attack the body’s own tissues. Ravetch was awarded the 2017 Ross Prize in Molecular from proof-of-concept studies to human clinical trials. Medicine for discovering how the specific molecular structure of antibodies controls immune cell reactivity. The spirit of collaboration also drove Nathan’s involvement in the creation of the Tres Cantos Open Lab Foundation. Academic scientists work side by side with professional drug developers on treatments for Nina Tandon, CEO and co-founder, Epibone, Inc. diseases that plague the developing world, such as tuberculosis and malaria. The intellectual property is licensed for free to manufacturers who make the drugs affordable to those in need. Nathan also works Epibone’s very premise—growing human bones to repair with the Bill & Melinda Gates Foundation’s TB Drug Accelerator to test compounds that may become the body—is innovative. The company hopes to build a 3-D model of a bone injury from a patient’s CT scan, extract drugs for TB. Nathan’s team has screened some 1.3 million compounds so far. adult stem cells from the patient and remodel the stem cells so they can grow a personalized bone graft ready for Among academics and the pharma community, it is “us and them,” said Nathan. “They don’t know each implantation. “Epibone is in the epicenter of regenerative other’s thought processes and work concepts,” he said. “This involves building trust, breaking bread medicine and stem cell science. That they are intersecting together. That is critical.” is miraculous,” said Nina Tandon. Her company is on track to begin human trials in 2018 and, if all goes to plan, to go to market by 2023. Epibone raised $5 million last fall to build out manufacturing space at its Brooklyn lab, double its lab space and hire more staff—all poised to seize this Gutenberg moment in science: “We can not only read the genome but write it, using biology as a design element to improve people’s lives,” said Tandon.

Timothy M. Wright, PhD, F. M. Kirby Chair of Orthopedic Biomechanics, Hospital for Special Surgery

Timothy Wright has a biomechanic engineer’s dream job. The implants that power replaced joints are the wondrous product of engineering principles, materials science and inspired design. Implants are attached to bone. Biomechanic researchers offer a better understanding of the biology of how bones react when they are replaced by plastic and metal. With the advent of 3-D printing, Wright sees a future where implants “can be solid in one place and porous in another. The question is how big does 3-D printing open up the design space?” And one day, can implants be imbedded with the technology of wearables, enabling them to send data on the detection of instability or infection? Wright directs scientists, research engineers and orthopedic surgeons in developing implants and custom devices for Hospital for Special Surgery patients. Baby boomers with total knee replacements can thank Wright for his decades of research into how the implants wear over the years; those innovative insights have been incorporated into engineering designs used worldwide. “Not a lot of engineers get to say that,” Wright said, appreciative of the work his team does. “There is a real need where I’ve been able to contribute.” Dr. Christopher Hillyer and Dr. Carl Nathan

Heritage Winners Recap MECH.indd 6 5/24/17 1:21 PM SPECIAL ADVERTISING SECTION OF CRAIN’S NEW YORK BUSINESS SPECIAL ADVERTISING SECTION OF CRAIN’S NEW YORK BUSINESS

New York Grows a Culture of Innovation Health tech and bioscience thrive in a new ecosystem

“you need to have provider networks, payers and a pool of technical talent. All these things exist in spades in New York.”

This growing ecosystem found praise from other Heritage innovators.

“New York has a talent market for health tech that is hands down the best in the country to build a health-tech firm,” said Arun Gupta, chief executive of Quartet, an innovator of mental health services. “Most tech is fintech or real estate or advertising. Those are very cool tech areas to work in, but as health-tech companies, we provide the ability to change people’s lives.”

In bioscience, too, New York City is gaining ground on Boston, believes Nina Tandon, chief executive of EpiBone, an innovator in bone reconstruction.

“There seems to be a confluence of necessary forces coming together to grow the ecosystem,” said Tandon, citing broad support for EpiBone: the EDC for lab space, Start-Up NY tax breaks, SUNY Downstate’s incubator and the Partnership Fund’s Nina Tandon and Dr. Richard Merkin BioAccelerate funding program.

“To support an ecosystem of innovation, you really Ten years ago, Rockefeller University company’s technology spares nursing home have to have all those boxes checked,” said Tandon. scientist Dr. Jeffrey Ravetch launched his startups residents a trip to the emergency department. far from New York. Call9’s launch was supported by Start-Up NY, Innovation isn’t always about huge investments. Empire State Development and SUNY Downstate It can simply mean seeing healthcare through an “In all honesty, it was impossible to start them Medical Center. innovative lens, leading to new solutions. Manmeet here. The investors wanted them based in Kaur, executive director of City Health Works, Cambridge and in Rockville, Md.” he recalled. It was a similar experience for Gil Addo, a Heritage relies on the personal touch to prompt behavioral “Why are funds based in New York investing award winner who is chief executive of RubiconMD, change in a population plagued by chronic disease outside New York?” an innovator of eConsult services. It was founded in and poverty. Peer counseling works best for such Boston in 2013. Addo decided to relocate to New York. patients who are older, sicker and often illiterate. Much has changed in the past decade. New York may be late to the game, but it is catching up to “We saw a better ecosystem,” he said. “Boston “It’s too tough a population, and not a great match, other clusters of innovation with committed fervor. health IT is still new and dwarfed by bioscience, for health tech,” said Kaur. compared to the many resources being developed In December 2016, Gov. Andrew Cuomo promised in New York.” That same challenge—changing behavior to a $650 million investment in life-science research produce better health outcomes—is also being and commercialization. The New York City Economic Development Corp. separately will disperse Mayor Bill de Blasio’s 10-year, $500 million commitment to biotech, including $100 million to build an applied-life-sciences hub in the city.

Such investments drive job creation and economic growth, to be sure. But they also fuel innovative work that has broad implications for healthcare.

“Innovation drives better healthcare and lower costs, and an insurance premium everyone can afford, regardless of the payer,” said Mark Wagar, president of Heritage Medical Systems.

“New York is a catalyst for change,” he added, the reason why Heritage Provider Network created an awards program for local agents of change. The 25 finalists and winners have demonstrated “actionable innovations that can be scaled up and become a solution for many people,” said Wagar. Michael Simmons, Dr. Tim Peck and Gil Addo

New York is now a hub for health-tech and life- science startups. Call9, a Y Combinator company, RubiconMD found support from New York angel tackled by Wellth. The company pays patients moved to New York from Silicon Valley. investors as well as the city’s EDC, Blueprint to adhere to their medication plan, a starkly Health and Health 2.0, entities that Addo said “are different approach from Kaur’s peer counselors. “The nursing homes here were so much more putting money into innovation and digital health.” And yet both of these Heritage finalists have made forward-thinking. Not even Stamford was biting,” measurable improvements to the health of New said Dr. Tim Peck, chief executive of Call9, whose For health-tech companies to succeed, he added, Yorkers. That is what innovation is all about.

Heritage Winners Recap MECH.indd 7 5/24/17 1:21 PM SPECIAL ADVERTISING SECTION OF CRAIN’S NEW YORK BUSINESS

Gil Addo accepts the Innovators in Healthcare Award Dr. Nora Bergasa accepts the Innovation in Healthcare Delivery Award

Mark Wagar; Dr. Michael Stocker; Dr. Richard Merkin; Laurel Pickering, Dr. Steven Safyer accepts MPH, president and CEO, Northeast Business Group on Health; Dr. Rosa the Organizational Leadership Gil, DSW, president and CEO, Comunilife, Inc.; Dr. Jo Ivey Bouffourd, Award on behalf of Montefiore Medicine president, The New York Academy of Medicine; Dr. Edgar Mandeville, FACOG, director, Department of OB/GYN, Harlem Hospital

Karen Ignagni accepts the Healthcare Leadership Award

Dr. Carl Nathan accepts the Research Investigators in Translational Medicine Award

Heritage Winners Recap MECH.indd 8 5/24/17 1:22 PM TRANSIT | PAIN STATION

CRUSH HOUR: Overcrowding is one of Penn Station’s biggest issues.

Trust, owns around the transit hub. At Cuomo’s in- vitation, Roth will sit on a 14-member committee just created by the governor to nally devise a viable solution for the station, where constant breakdowns, delays and overcrowding have reached a crisis point. Roth also happens to be a member of the senior advisory council helping President Donald Trump cra his promised $1 trillion infrastructure spend- ing plan. ose twin roles have thrust the 75-year- old chief executive into a key position to both OFF trumpet his rm’s plans for Penn and leverage his presidential connections to secure the federal mon- THE ey those renovations would require. “I think it gives Vornado a chance to reboot their plans,” said one prominent real estate executive. “Roth has connectivity to both the station and Washington.” is turn of events is a true reversal of fortune for both Cuomo and Roth. In his State of the State address last year, the governor called for ideas from the private sector on how to best transform Penn Station. Vornado submitted a plan, as did other respondents, including Michael Stern of JDS Development. RAILSPenn Station ov. Andrew Cuomo nally conceded Perhaps wary of promoting the kind of grandi- is in crisis, last week that the plan he hatched a year ose plans that came to nothing under three of his ago to x Penn Station is insu cient to predecessors, Cuomo instead went his own way, of- and one major address the long-maligned transit hub’s fering a modest $220 million proposal to widen the developer sees a growing problems. He said he anticipat- Long Island Rail Road concourse, install LED panels Ged a “summer of hell” for commuters as tracks are projecting blue skies and renovate the terminal’s two big opportunity shut down to make overdue repairs. subway stations. “You’ll see … breakdowns for the foreseeable fu- e plan received a lukewarm response from some ture,” Cuomo predicted before declaring, “We need observers but was roundly rejected by transit advo- BY DANIEL GEIGER major renovations at Penn and … an organization cates as being barely a half measure. “What the gover- that can actually do them.” nor suggested doesn’t get us to solving the problems,” Enter Steve Roth, a real estate tycoon known to said Elizabeth Goldstein, president of the Municipal tout the business motto “trouble is opportunity.” Art Society of New York. “It’s a patch that may pre- For more than a decade, the billionaire landlord vent us from doing something really ambitious.” has sought to redevelop Penn Station into a worthy Vornado’s plans—which have yet to be made centerpiece for the more than 7.5 million square feet public—have been quietly embraced by transit

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CRAIN’S NEWYORKBUSINESS STEPS PENN, IN11 PAINFUL THE PROBLEMSAT connect to the existing station. connect totheexistingstation. facility, Penn Station South.Platforms would and Westand West 31ststreetsandadd 31ststreetsandaddtracksatanew tracksatanew more thanablockofbuildingsalongWest 30th Eventually theGateway planmay demolish make Pennevenmore crowded? make Pennevenmore crowded? But won’tthoseadditionaltrains increase tunnelcapacityatPennincrease tunnelcapacityatPenn by by 50%. 50%. tubesand tubesand to repairtheexistingcentury-old to repairtheexistingcentury-old river.river. Oncecompleted, Oncecompleted, thesewillallowAmtrak thesewillallowAmtrak newnew tunnelsthatwillbeboredbeneaththe tunnelsthatwillbeboredbeneaththe for foreast route.Crucial east route.Crucial Penn Penn Stationarethetwo Stationarethetwo will will x thechokex thechoke points alongAmtrak’spoints Amtrak’s north- north- It’s that aprojected$24billionundertaking What isGateway? the Gateway tunnelprojecttobefunded. now theentireregionisdesperatelywaiting for 2010, was justasconstruction beginning, so Chris Christiekilledplansfor new tunnelsin guessed it—moredelays. New Jersey Gov. outconstantlyandcause—you systems short tems thatpower AmtrakandNJTtrains.These inside, wreakinghavoc ontheelectricalsys- with saltwater thewalls thatcorroded fromthe feeder undertheHudsonRiver tunnelsthatrun SandyIn 2013Superstorm ooded thetwo How coulditbeworse? Of course, that’s nottheonlybigproblem. Andrew Cuomo dubbedthe“summerofhell.” 20% over thenextfew months, ascenarioGov. To dothem,mustbecutby morethan service areneeded. bad shapethatemergencyrepairs spected thetracksandfound they were insuch After arecentseriesofderailments, Amtrak in- easily be xed whilethetrainsarestillrunning. has beensoprofound, theproblemscannot neglect by Amtrakanditsfederal benefactors reached itsbreakingpoint.Andbecausethe hassimply In short,theaginginfrastructure What’s causingthecurrent crisis? place tonavigate. Moreonthatlater. being acramped, miserableandconfusing problemofPenn’sThen thereistheunderlying to delays thatripplethroughoutthesystem. platforms slowdownboardingtimes, leading make asmany tripsaspossible.Overcrowded intoeachcarand topackmoreriders erators infrastructure’s wear andtearforcing op- double itsof cial capacity, exacerbatingthe Amtrak. Asaresult, Penn operatesataround Rail Road, whichsharethestationwith for New Jersey Transit andtheLongIsland hasballooned derailments. Ridership switch malfunctions, causingbothdelays and nance. Thathasledtomyriad rail, tieand has notdonesuf cient preventive mainte- Plenty. Amtrak, whichownstheterminal, What’s wrong withPennStation? connect to the existing station. connect totheexistingstation. facility, Penn Station South.Platforms would

PAIN STATION BY JOEANUTA

MAY 29, 2017 shared some of details with the Crain’s comment, but others familiar with its proposal Knowledge,”“Local above). Vornado declinedto owns much so of surroundingthe real estate (see sitioned to ailingx the station, it because inpart enthusiasts the believe who is uniquelyrm po- space whereare they now. ing up square footage more inthe heavily tracked intobooths what is now Amtrak’s train free- hall, and New Jersey Transit ticket and information skylights that would allow daylight actual to shine in. Plaza would allow developer the to large install glass Vornado’s 1Penn into of base the ing that corridor station. Extend- congested inthe iest and most rently bus-the existing one, cur- that replaces the LIRR concourse to abrand-new would connect commutersportal at 2Penn Plaza. ce tower it owns adjacentthe of- would at install would integrated be company the facade with anew enue, covered by a50-foot-high canopy glass that entrancenew at West 33rd Street and Av- Seventh Doors ofperception Other improvementsOther include moving LIRR the that rough Vornado’s plan for calls a roughly 100-foot-wide WHAT’S GOOD FORTHEPUBLIC DO THISWITHOUTVORNADO. IS ALSOGOODFORTHEM” “WE WOULDBECRAZYTO . velopers pushed a plan to move Madison Square to build Moynihan ago, a decade but de- the when Station commuters. ing, is projected to handle only about 20%of Penn facility, built inside old the Farley Post Oce build- housethat also o will ce and retail space. But that residents, o ce workers, tourists and 600,000the of retail new spacethat would cater to surrounding wouldrm create tens of thousands of square feet nado’s real estate.” proved station value the of much boosts so of Vor- forgood public the for good is An also them. im- towilling put game, skininthe what’s and see they Cuomo’s committee. “ have ey shown themselves gional Plan Association, named was who also to Vornado,” said Tom Wright, president of Re- the LOCAL KNOWLEDGE WITH MORE THAN 7MILLIONSQUARE FEET 10th AVE when itcomesto xing Penn Station. Vornado couldprove anessentialpartner nearby retailandof ce spaceinitsportfolio, Vornado and Related had won original bidthe To help pay for multibillion-dollar the plan, the “We would crazyto dosomething be without

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GETTY IMAGES, BUCK ENNIS trip out of country. the last week to president, the was who on anine-day as an emergency situation ,” Cuomo wrote inaletter turn president’s the attention toward Penn Station. his executive budget, and Cuomo to has struggled back funds for New York projects infrastructure in moneyeral to project.the Trump has already pulled make indirecting himakeyfed- intermediary also rebuilding, to his ties President close Trump could in an advantageous position to handle station’s the plan avoids any suggestion of moving arena. the whole deal. at may explain why Vornado’s current the nancial the and challenges logistical torpedoed Garden into westernof the station, new the section “I request that government federal the treat this Not only do Roth’s real estate holdings put him

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MSG W 35th ST 35th W won’t make hard problems to easier solve.” mission. “Having contest adesign or acommittee Kellermann, president of Citizens the Budget Com- proved and to never go out of service,” said Carol what’s People needed: want trains the im- to be eorts to remake station. the why reboot this would fare any better than previous in 2020. and has been oated as a White House contender rival. Cuomo of critical Trump’s has been policies Trump might perceive as bene to a cial political ble assembling for funds, especially aproject that like Roth on his team, governor the may have trou-

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ST nd 32 W ■ yet to embrace them. yet toembracethem. improve thetraveler experience, butCuomohas estate haverms pitchedideastodramatically Penn morepleasant.Several prominentreal inadequate toalleviate overcrowding andmake Avenue. Butmany advocatesbelieve hisplanis ments, includinganew trainhallacrossEighth the station.Cuomohasproposedsomeimprove- Amtrak ownsthetracks, thestateisatenantat son SquareGardenwas built in itsplace.While Penn Stationwas downandanew Madi- torn And ithasbeensince1963, whentheoriginal But theexistingstationisawful! long, tedious winter. that thissummerofhellisjust thepreludetoa toeffectfailure ofcivicleaders change, mean guy’s fault.Theirlackofcooperation, andthe also allbelieve thattheproblemsareother sizesoftrainsandplatforms. They tion varying priorities andhowtopay for them, nottomen- have vastlydifferent ideasabouttheregion’s In aword, politics. Amtrak, NJTandtheLIRR What’sPerfect! theproblem? of theGateway project. plan couldbepaidfor withintheprojected cost do withoutPenn StationSouth.Even better, the reduce demandfor tracksatPenn enoughto group, ReThinkStudio, says thischangewould by extendingtheirjourneys intoQueens.One Jersey trainscoulddolikewise,ed terminal. atafarlesscrowd- up Manhattan-boundriders New Jersey before aroundandpicking turning merely stoppedatPenn andthencontinuedto be avoided if, for example, LongIslandtrains causing adailytraf c nightmare.Thiscould go backonthesametracksthey cameinon, aroundand the east.Thesetrainsmustturn trains fromthewest andLIRRtrainsfrom Currently, Penn Stationisthelaststopfor NJT What doesthatevenmean? through stationratherthanaterminal. Make wonders: Pennone switchcouldwork a people atseveral areathinktankswhosay toGrandCentral.Therearealso trains torun thatwillallowsomeLIRR massive undertaking The stateiswrappingupEastSideAccess, a Other projectscomingonlinecouldhelp. the bestNewYorkers canhopefor? less horriblePennStation?Isthat around 2025we’llhaveamarginally So ifallgoesperfectly, sometime nels wouldtake atleast tocomplete. ve years Even ifGateway were fundedtomorrow, thetun- that wouldhave halfthecash. provided nearly program has proposedcuttingtheinfrastructure TheTrump administration is muchlesscertain. the federal government.Fundingfor Gateway funded by developers, New York, New Jersey and Cuomo’s $1.6billionMoynihan projectisbeing Who’s payingforallthis? are theonly intheworks. xes currently means Amtrak’s andCuomo’s repairs tweaks doesn’t seemlike they willanytime soon.That But thosenegotiationshaven’t started,andit suggesting of cials mightconsiderarelocation. for onedecadeinsteadofthe ve hewanted— ownerJamesDolan’sKnicks andRangers lease Station. In2013theCityCouncilextended orMoynihan of theUnitedStatesPostal Service na over theyears, toeithertheMorganAnnex There’s beenalotoftalkaboutmoving theare- Garden andbuildaproper station? So whynotmoveMadisonSquare inadequate toalleviate overcrowding andmake Avenue. Butmany advocatesbelieve hisplanis ments, includinganew trainhallacrossEighth the station.Cuomohasproposedsomeimprove-

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27 5/26/17 6:50 PM Wednesday, June 14, 2017 Sheraton New York Times Square Hotel REAL ESTATE CONFERENCE 811 Seventh Avenue 8:00 a.m. – 8:30 a.m. Registration DON’T JUST THINK BIG. and Networking Breakfast 8:30 a.m. – 12:00 p.m. Program BUILD BIG. Cost to Attend: In an era of high land and labor costs, when government wants a stake in a builder’s $300 for individual ticket(s) revenue for public infrastructure, the private and public sector can work together to $3,000 for table(s) of 10 guests build transformative projects worthy of a great global city. $4,400 for table of 10 guests + OPENING KEYNOTE: journal ad You must be pre-registered to attend this event. Hear from Marc Holliday, Chief Executive Ofﬁ cer, SL Green Corp, on the magnitude, complexities No refunds permitted. and transformational impact One Vanderbilt will have not only on Midtown East but also the rest of the city. For more event information: PANEL DISCUSSION: What’s the Big Idea? Ashlee Schuppius STATEN ISLAND: JOHN CETRA, FAIA, Founder, CetraRuddy 212-210-0739 MANHATTAN: JOHN J. DEGNAN, Chairman, The Port Authority of New York and New Jersey [email protected] BRONX: MARK GINSBERG, FAIA, LEED, AP Principal, Curtis + Ginsberg Architects For sponsorship opportunities: QUEENS: JAMIE TORRES SPRINGER, Senior Principal, HR&A Advisors BROOKLYN: CHRIS WARD, Senior Vice President and Chief Executive, Metro New York, AECOM Irene Bar-Am 212-210-0133 PANEL DISCUSSION: How Big Happens* [email protected] MARTY BURGER, Chief Executive Ofﬁ cer, Silverstein Properties, Inc. COUNCIL MEMBER DAVID G. GREENFIELD, Chair Land Use Committee GARY LABARBERA, PRESIDENT, Building & Construction Trades Council of Greater New York »REGISTERTODAY« PURNIMA KAPUR, Executive Director, New York City Department of City Planning crainsnewyork.com/events-rejune2017

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CN018271.indd 1 5/25/17 12:19 PM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS

EXPLORE THE BRONX Bronx-Whitestone Bridge ooking for some exciting activities to add to your calendar? Consider the Bronx, one of the hottest destinations in the city for day trips, dining, sports L and recreation. The Bronx is now an increasingly sought-after location for investment by commercial real estate investors involved in hotel development, retail and more. It’s hard to run out of things do in this borough, home to famous attractions including the Bronx Zoo, the New York Botanical Garden and Yankee Stadium. For foodies, there are plenty of culinary choices to explore in Bronx neighborhoods such as the historic seaport community City Island and Arthur Avenue, also known as the Little Italy of the Bronx. Currently in the works are additional new eateries, located in former Bronx General Post Office building. And history buffs will find no shortage of interesting sites in the borough, from the Edgar Allen Poe Cottage, where the famous poet once lived, and Woodlawn Cemetery, which dates back to the Civil War era. The Bronx is bursting with excitement, not to mention the many action-packed events that take place there year-round. This year, the Bronx Walk of Fame inducted the legendary medical-device entrepreneur Manny Villafaña, hip-hop DJ Funkmaster Flex, actress Selenis Leyva and singer and songwriter Prince Royce. Their names will appear on street signs along a 2-mile strip of the Grand Concourse. Coming up are SalsaFest, a month-long festival in August that will feature many live music performances, and the Tour de Bronx cycling event on October 22. To help you tap into all that the borough has to offer, Crain’s has partnered with the Bronx Overall Economic Development Corporation, the economic development arm of the Office of the Bronx Borough President Rubén Díaz Jr. Read on for a closer look at what’s going on.

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Crain's Real Estate Exploring The Bronx Section MECH.indd 1 5/25/17 2:47 PM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS EXPLORE THE BRONX Creatives, Craft Brewers and Café Owners Flock to New Spaces

Something of a Katz said the 4-story, 181,000-square-foot building hotel boomlet is has received a lot of interest from potential ten- also underway in ants, including big-box retailers, charter schools the South Bronx, and the entertainment sector, among others. “We City National is the bank with potentially as are open to seeing what makes the most sense many as 10 inns for the building and the area, but at the moment under construc- there is nothing fi rm,” said Katz, who is also CEO tion that will serve of Interstate Outdoor Advertising Inc., a billboard local residents, company. built on client referrals. business clientele and no small num- Katz said the family bought the building for the in- ber of European come from the billboard on the roof, now owned by Top Ranked in Client Referrals.* tourists eager for Clear Channel Outdoor, but left the building empty an alternative to after the last tenant, a furniture company, moved the Disney, Times out, and the family tended to other business. “I Hayloft Auctions‘ Laura Doyle, Square, New York think it was left empty in part because we’re not vice chairman/executive vice president and Brian Corcoran, director experience. typically real estate developers and that wasn’t why we originally bought it,” he said. “It just wasn’t There will also be our focus. But now that we’ve partnered with a aura Doyle had her eye on the Bronx for about four new Metro North stations in the borough. developer we are going to make it beautiful and 15 years. Driving from Manhattan to the now make sure it becomes a very active, vibrant part of Richard Moon L closed ABC Carpet & Home Outlet with her “They will be for people looking for a cheaper the community.” husband was a favorite junket, as much as for the alternative to Long Island City and Brooklyn, with Owner, shopping as for the fascinating old warehouses she tremendous subway access,” according to David spotted along the way. Though rooted in the Upper Simone, senior director, Cushman & Wakefi eld Richard Moon & East Side since the early 70s, Doyle always had the commercial brokers. Doyle also looked to Long thought of getting more space for the family auction Island City when planning to expand her family Associates CPAs business in the back of her mind. business, but likewise was put off by prices. “I Cozette Vergari Referred Cozette to needed to do it in a cost-eff ective way and that’s “The potential was so obvious,” said Doyle of the hard to do in Long Island City where as an end user Owner, City National Bronx. “But we didn’t have the nerve.” you are competing with developers,” she said. Vergari & Napolitano Eighteen months ago, however, Doyle pulled the trig- Prices for offi ce space in the South Bronx remain Attorneys ger on 10,000 square feet of space in Port Morris and much cheaper than in other areas of the city, accord- made it the home to Hayloft Auctions, the two-year- ing to Tom Farrell, managing partner at Savanna, old, online-only division of the family’s eponymous which owns the Bruckner Building at 2417 Third company founded in 1962 by her father, William. As Ave., as well as the Falchi Building, one of the fi rst View of Bruckner Building from vice chairman of Doyle, Laura Doyle will soon add buzz-worthy factory conversions in Long Island City. the Th ird Avenue Bridge another 10,000 square feet to the Bronx location of Hayloft Auctions, which she founded. Farrell said the Bruckner Building is about 45% leased, with prices in the high $20 per-square-foot Many new arrivals to the South Bronx’s commer- Along with other creative businesses like the statio- range. By comparison, prices at Falchi are in the cial space can be considered nontraditional, such nery company Bronx Design Group, Italian mosaic low 40s range, while properties in Dumbo are at as a manufacturer of high-end furniture or a com- tile-maker Sicis and noted bakers of pastel-colored $60 per square foot and Downtown Brooklyn prop- pany that makes underwater drones, both of which French-style macarons, Woops!, Hayloft is among erties are in the mid-50s. Properties in Manhat- have leases in the Bruckner Building. Also fueling the newcomers to the new South Bronx as the area tan’s Financial District, the cheapest of all major the market and upping the demand for small develops into long-awaited commercial critical mass. markets in Manhattan, are also priced in the $50 businesses that create jobs are large companies per-square-foot range, according to Farrell. moving into the area, including Fresh Direct’s new Detractors historically have pointed to a lack of headquarters, featuring a 10-mile long conveyor amenities and good restaurants in the area but that is Brokers note a lack of buildings to buy as owners belt, set to open later this year. Meanwhile, Jetro, changing, too. New food and beverage options in the hold onto assets and wait for prices to go up even the wholesale grocery supplier, is adding a facility South Bronx include Grady’s Cold Brew, the Bronx Ale further. Cushman Wakefi eld’s Simone sees the in Hunt’s Point. According to Marlene Cintron, House, and the Port Morris Distillery, among others. eff ect this is having on offi ce space available for president of the Bronx Overall Economic Develop- The Gun Hill Tavern, which opened last fall, is the rent in a corridor that extends past 161st Street, ment Corporation, a Canadian company that has a favorite watering hole of production teams fi lming considered the northern border of the South tentative contract with the MTA has an option on a at Silvercup North, the Bronx outpost of Silvercup Bronx, and north to 175th Street. “Vacancy rates 20,000-square-foot property in Port Morris. Studios in Queens, which opened last summer. are extremely low,” he said. “You will continue to see sale prices and rents go up.” Some observers say that progress in the South Currently being renovated, the former Bronx Gen- Bronx has been slow since developers began buy- eral Post Offi ce has secured a grocery store as a There is fi nally some movement at 20 Bruckner ing and converting properties in the early 2000s. ground-level tenant and a fi ne-dining restaurant for Blvd., formerly known as the History Channel In any case, properties like the Bruckner Building the roof, where it added a fourth story, according to Building because of the channel’s billboard that and iHeartRadio are making up for lost time to Margarette Lee, partner of Youngwoo Associates, stood on the roof for 15 years but has since been the great satisfaction of everyone involved. “The ® the project’s developers. A food hall called Bruckner replaced by a sign for iHeartRadio. Demolition is demand has been fantastic and it is moving at a Call (917) 322-5245 to learn more or visit cnb.com/referrals. The way up. Market is being developed at 9 Bruckner Blvd. by in full force, according to Drew Katz, whose family much faster pace than expected,” said Farrell. “We Somerset Partners, who are also part of the group owns the building in partnership with Maddd Eq- knew, going out, that the market was good, but we behind a massive South Bronx residential and water- uities and Jorge Madruga. Basic interior fi nishing thought it would take longer to get this active and *Based on interviews conducted by Greenwich Associates in 2016 with more than 15,000 executives at mid-size businesses across the country with sales of $10-500 million. CNB results are compared to front development project planned for nearby. should be completed by the end of the summer. get this many people into the building.” leading competitors on the following question: How likely are you to recommend (bank) to a friend or colleague? Photo credits: ason Green / JGEventPhoto and Claire Wilson Photo credits: ason Green / JGEventPhoto

Crain's Real Estate Exploring The Bronx Section MECH.indd 2 5/25/17 2:47 PM City National is the bank built on client referrals. Top Ranked in Client Referrals.*

Richard Moon Owner, Richard Moon & Associates CPAs Cozette Vergari Referred Cozette to Owner, City National Vergari & Napolitano Attorneys

Call (917) 322-5245 to learn more or visit cnb.com/referrals. The way up.®

*Based on interviews conducted by Greenwich Associates in 2016 with more than 15,000 executives at mid-size businesses across the country with sales of $10-500 million. CNB results are compared to leading competitors on the following question: How likely are you to recommend (bank) to a friend or colleague?

CN018276.indd 1 5/23/17 2:42 PM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS EXPLORE THE BRONX The Bronx Unplugged

neighborhoods—run by the Bronx Music Heritage Center, and live performances at Orchard Beach and the Lehman Center for the Performing Arts. Salsa artists will also perform at Sunset Wednesdays at Wave Hill, the public garden and cultural center recently named the “most loved cultural venue in New York City,” by Time Out New York magazine. “It’s about the history of the music and the science of the music,” said Tirado.

For foodies, the vibrant dining scene in Bronx neighborhoods such as Arthur Avenue and City Island is yet another temptation. Known as the Little Italy of the Bronx, Arthur Avenue is home to TOUR THE HOME OF THE a variety of restaurants, bakeries, bread stores, Pergola at Wave Hill pasta makers, butchers and gourmet delis. Sam Lazar, an agent at Triplemint Real Estate 27-TIME WORLD CHAMPION hen Peter Novak, a business development Club, the city’s new Major League Soccer team, who grew up in the Bronx and now lives in professional, and his wife Sofi a, a which will be playing home matches there Manhattan, says she loves restaurants such as Wphysician, are on the hunt for interesting throughout the summer. The stadium also has Michaelangelo’s Little Italy on Arthur Avenue family excursions, they often head to the Bronx added new amenities such as the Sunrun Kids where, thanks to the airy interior, it feels like you NEW YORK YANKEES! from their home in Forest Hills, Queens, with Clubhouse, a children’s play area and several new are eating outside. “They have fantastic Sangria,” their two daughters, ages 3 and 7. One favorite options for dining and socializing, such as Frank’s she said. And for a quick slice of pizza, Lazar opts destination is the Bronx Zoo. “We’ve been RedHot Terrace. for Full Moon Pizzeria on Arthur Avenue, “I love members for years. It’s a nice zoo, if you like the buff alo chicken slice”; and zoos,” said Novak. He happens to love them, Pugsley’s, on 191st Street, near after growing up in Hungary, home of the historic Fordham University. “If you’re a Budapest Zoo. Fordham student, everyone has heard of Pugsley’s,” she said. Novak’s family is fi nding that the Bronx keeps pulling them back. With the mayor’s offi ce reporting Lazar’s favorite spot in the Bronx that a record-breaking more than 60 million visitors is the Arthur Avenue Market, an came to the city in 2016, the Bronx is benefi ting indoor farmer’s market. “It’s the from both an overall tourism boom and growing best hidden gem in all of New recognition, among residents of the outer boroughs York,” she said. Lazar, who lived and travelers around the world, that it’s a New York in the Bronx until she began Garden Block Party City destination worth checking out. attending Fordham University in 2013, often picked up steaks To make the most of the growing interest Those are just some of the many sports and and other meats at Mike’s Deli at Arthur Avenue in the 42-square-mile borough north of of recreation activities in the Bronx. For college Market. “They have fantastic little beef pinwheels Manhattan, local cultural, entertainment and sports fans, Draddy Gymnasium at Manhattan with cheese in them,” she said. “When you buy sports organizations have unrolled a full menu of College is home to the Manhattan Jaspers Division them and pop them in the oven, you look like a enhanced attractions and events. “There is not 1 basketball team, as well as the school’s volleyball genius chef.” going to be a lack of things to do in the borough team. “It’s named for the family of Vincent Draddy, this summer,” said Olga Luz Tirado, executive one of the school’s greatest student athletes and The Bronx Beer Hall, which is located in the director of the Bronx Tourism Council. “The an innovative sportswear manufacturer,” said market, is another popular destination. “It was FOR GROUPS OF 20 OR MORE, institutions are expanding and doing more.” Peter McHugh, director of communications for an instant hit—people love the beer flights,” said Manhattan College. “He is partly responsible for Lazar. One case in point is the New York Botanical Garden, the popularity of the Lacoste knit shirt.” PLEASE CONTACT US AT 646-977-TOUR one of the borough’s most popular destinations The beer hall, which features craft brews from and a National Historic Landmark. It currently And there are also plenty of options for outdoor around the state, is just one of several Bronx features an outdoor exhibition by the renowned activities, from canoeing on the Bronx River to attractions for beer- and spirits-lovers. Other sculptor Dale Chihuly, which will run through Oct. hiking in Van Cortlandt Park. Adventurous types popular hubs are Bronx Brewery at 136th Street, 29. For “Chihuly Nights,” the garden is open on will soon be able to try out the new zip line at Chelsea Craft Brewing Company at 463 E. 173rd yankees.com/tours specifi ed evenings throughout the summer, and the Bronx Zoo, slated to open this summer. For St., and Gun Hill Tavern at 780 E. 133rd St. The into fall, so that guests can view the illuminated tennis buff s, the newly renovated Cary Leeds New York Adventure Club, a local urban exploration sculptures, as a rotating lineup of performing Tennis Center for Tennis and Learning in Crotona company, will be hosting a tour on June 3 called, artists and musicians entertain. In June, the Park off ers 22 courts and a 12,000 square foot “Savoring the Bronx: Multi-Brewery Tour, Tasting [email protected] @YankeesTours botanical garden will also host its 2nd annual clubhouse. Another local favorite is the floating and Games,” on which participants will be able to Plein-Air Invitational, where the painter James public swimming pool in Barretto Point Park, sample local ales and appetizers and play games Gurney and more than 20 other master artists will where a repurposed barge off ers a unique place to such as foosball and darts. paint outdoors in various locations throughout the cool off . garden. “The botanical garden is becoming a huge Some visitors prefer to stay open to unplanned outdoor gallery for the arts,” said Tirado. A major event in the Bronx this summer will possibilities when visiting the Bronx. Often, Novak be the SalsaFest in August, which honors the and his family will simply head to City Island after Meanwhile, Yankee Stadium, a perennial summer borough’s history as the home of musical legends a trip to the zoo and try an eatery they’ve only destination, will be bustling. Many people don’t such as Willie Colon and Héctor Lavoe. This just discovered. “We usually pick a restaurant on know that in addition to the Yankees, the stadium year’s borough-wide festival will feature talks the water’s edge,” he said. So far, they haven’t is also the current home of New York City Football by current performers, walking tours of historic gone wrong.

Photo credits: iStock and Marisol Dias Photo credits: iStock and Marisol New York Yankees trademarks and copyrights are owned by and used with the permission of the New York Yankees. All rights reserved. Third party trademarks are proprietary to each of their respective owners. All right reserved.

Crain's Real Estate Exploring The Bronx Section MECH.indd 4 5/25/17 2:47 PM TOUR THE HOME OF THE 27-TIME WORLD CHAMPION NEW YORK YANKEES!

FOR GROUPS OF 20 OR MORE, PLEASE CONTACT US AT 646-977-TOUR

yankees.com/tours

[email protected] @YankeesTours

New York Yankees trademarks and copyrights are owned by and used with the permission of the New York Yankees. All rights reserved. Third party trademarks are proprietary to each of their respective owners. All right reserved.

CN018272.indd 1 5/23/17 12:24 PM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS EXPLORE THE BRONX

month of June. That is what makes it more busy A Theater Celebrates and exciting.” From June 1-30, the theater will present El Bolero Was My Downfall, a new production of a play it staged 20 years ago. Based on the story Loca La De La Locura by Puerto Rican author Manuel Ramos Otero, El Bolero tells the tale of a nightclub entertainer and femme fatale who recounts the tale of how she ended up in prison. The play, with dual-language subtitles, including English trans- lation, features an expanded cast and new songs, among other elements. Tickets start at $15.

“They are taking a new approach to the story, so we can tell the story from diff erent angles and diff erent perspectives,” said Yaremis Félix, artistic and operations associate. “We may feel we have accomplished a lot in terms of inclusion and rights in our society but there is a long way to go.” El Bolero Was My Downfall he Latino community has deep roots in the at the Pregones Th eater Fans of the iconic Cuban performer Bronx. One place to experience the Bronx’s La Lupe, a contemporary of Cecilia Trich Latino culture is at Pregones Theater Cruz, can hear a panel discussion and Puerto Rican Traveling Theater at 571-575 and record sampling at the theater, Walton Ave., the merger of two local theaters into on June 6 at 7:30 p.m. The panel, one Latino arts organization. With performance Demystifying A Diva – La Lupe: Panel venues in the Bronx and Manhattan, the organi- Discussion and Record Sampling zation has its own resident theater company and will explore the life and music of also works with traveling artists from around the the La Lupe, and is being presented world. in collaboration with City College Center for the Arts, and the Caribbe- In the coming months, Pregones will have an an Cultural Center African Diaspora unusually full lineup of events. “The summer Institute. is usually a little calmer,” said Artistic Director Rosalba Rolón. “This time we are adding a main Later in the summer, the theater will stage piece that is happening throughout the be holding its summer block party, La Casita, presented in collaboration with Lincoln Center Out of Doors on Sunday, Aug. 6, from noon to 7 p.m. One of the theater’s most popular free outdoor events, the gathering brings together live performances and a preview of the theater’s upcoming season. “We typically have 10-12 music or performance ensembles performing throughout the day,” said Rolón. “The theater is open for the public to come in. We also do a performance inside the theater and children’s activities inside of the garden.”

The small, fully renovated theater also has other attractions. It includes a lobby gallery of New York City photographs gifted to the theater by visual artists from around the world, as well as an outdoor garden. An exhibit called Sangre Latina NYC features the personal work of Spanish artist Nacho Berdugo, who arrived in New York City in 2012.

For those traveling from Manhattan, getting to the Bronx is easy, thanks to a subway station around the corner where the Nos. 2, 4 and 5 lines run, noted Rolón. Some visitors opt to stay in nearby lodgings like the Opera House Hotel or Mi Casa Tu Casa Guesthouse, a local bed and breakfast, she said. “We have a lot going on here,” said Rolón. “Everyone is welcome.”

Did you enjoy our exploration of all things Bronx? Then look for Crain’s Explore Brooklyn advertising section coming July 10 where we’ll cover topics like: • Commercial real estate developments • Small businesses All New York Yankees trademarks and copyrights are owned by the New York Yankees and used with the permission of the New York Yankees. • Non-profi t organizations • Activities and attractions Photo credit: Erika Rojas Photo credit: Erika

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Arts. of ess to: c/o The LLC, 800 3rd Avenue, 11/29/16. Office location: NY County. • EMERGENCY SERVICE Ste. 3703, NY, NY 10022. Purpose: LLC formed in Delaware (DE) on Org. filed with Secy. of State of NY • CUSTOM ENGRAVING any lawful activity. 10/25/16. Princ. office of LLC: 530 (SSNY) on 4/11/17. Office location: W. 45th St., Apt. 9N, NY, NY 10036. NY County. SSNY designated as agent • RENTALS SSNY designated as agent of LLC of LLC upon whom process against it • WIDE AREA SYSTEMS Notice is hereby given that a license, upon whom process against it may be may be served. SSNY shall mail proc- with a pending Ser No., has been ap- served. SSNY shall mail process to ess to: 660 Madison Avenue, NY, NY plied for by Island Oyster LLC, to sell liq- the LLC at the princ. office of the LLC. 10065. Purpose: any lawful activity. The Largest Motorola Dealer in uor, wine and beer at retail in a covered DE addr. of LLC: c/o Corporation Serv- New York State tavern lounge on Governors Island un- ice Co., 2711 Centerville Rd., Ste. SD Flushing DE LLC filed an App. for 250 West 40 th St. der the ABC Law at Manhattan Ferry 400, Wilmington, DE 19808. Cert. of Authority with the NY Dept. of State on Landing, Governors Island, 10 South Form. filed with DE Secy. of State, 3/30/2017. Jurisdiction DE. The date New York, NY 10018 Street, Slip 7 New York, NY 10004 for John G. Townsend Bldg., 401 Federal of its org. is 3/30/2017. Office locat- 212-532-7400 Summer on-premises consumption. St., Ste. #4, Dover, DE 19901. Pur- ed in NY County. The Secretary of the www.metrocomradio.com pose: Any lawful activity. State of NY ("SSNY") is designated as agent upon whom process against it PUBLIC & LEGAL Notice of Formation of PERFORMANCE may be served, the address to which MEDICAL PRACTICE, PLLC Arts. of Org. Notice of Formation: USTV Rentals LLC the SSNY shall mail a copy of such NOTICES filed with Secy. of State of NY (SSNY) on (LLC) Arts. of Org. filed with the Sec. of process is: 26 W 17th St., Ste 801, 04/10/17. Office location: NY County. State NY (SSNY) on April 4, 2017. NY NY NY 10011. Address maintained in NOTICE is hereby given that a license Princ. office of PLLC: Marvell Scott, 141 Office Location: New York County. DE is 850 New Burton Rd. Ste. 201, number 1302497 for Liquor has been ap- E. 56th St., Apt. 3L, NY, NY 10022. SSNY Desig. Agent of LLC upon whom Dover DE 19904. The authorized offi- plied for by the undersigned to sell beer, SSNY designated as agent of PLLC upon process against it may be served. cer in DE where a copy of its Certifi- wine and cider at retail in a hotel restau- whom process against it may be served. SSNY to mail copy of process to the cate of Formation can be obtained is rant under the Alcoholic Beverage Con- SSNY shall mail process to the PLLC at LLC at its principal business location at DE Sec’ty of State, 401 Federal St., trol Law at 426 S. 5TH STREET, BROOK- the addr. of its princ. office. Purpose: PO Box 809, New York, NY 10108- Dover De 19901. The purpose of the LYN, N.Y 11211 for on premise consump- Practice of medicine. 0809. Purpose: any lawful purpose. company is: any lawful act. tion. RIAM REALTY LLC.

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MAY 29, 2017 | CRAIN’S NEW YORK BUSINESS | 35

P035_CN_20170529.indd 35 5/25/2017 8:55:45 PM EXECUTIVE MOVES Advertising Section New hires, promotions and board appointments. Place your listing at crainsnewyork.com/execmoves or contact [email protected]

❚ FINANCE ❚ LAW ❚ NON PROFITS ❚ PROFESSIONAL SERVICES

Bank Luemi Loeb & Loeb LLP SCO Family of CrossCountry Martin Droney Within Laurie Ruckel, has Services Consulting been named Managing his role as Executive Demetrios Yatrakis Nav Makol has Partner of Loeb & Loeb’s Vice President and Chief joined CrossCountry New York office. She was appointed to the Operations & Technology Consulting as a Partner, concentrates her practice Board of Directors of where he will be leading Officer, Martin Droney on estate planning, suc- SCO Family of Services. risk advisory services will oversee the bank’s cession planning, estate Mr. Yatrakis is a partner in Banking and Capital Markets, with a technology infrastructure and operations, and trust administration and estate taxation focus on data analytics, robotics, process matters for high-net-worth individuals, at Lonicera Partners, a private real estate managing a team of more than 100 full-time reengineering and other risk management closely held businesses, real estate clients investment and development company in employees and contractors. He joins Leumi services. and executives of publicly held companies. from Fiserv. Brooklyn. He leads the firm’s real estate She also serves as Deputy Chair of Loeb & acquisitions, investor relations, and prop- Loeb’s nationally recognized Trusts and Estates Department. erty management. He previously served as ❚ REAL ESTATE ❚ INSURANCE a senior executive at Granite International Management, where he was responsible for Denham Wolf Hub Interna- Loeb & Loeb LLP property management and repositioning Real Estate Ser- tional Northeast vices, Inc. Mitchell Nussbaum, assets. Mr. Yatrakis’ business expertise, Limited As Denham Wolf’s new was named Vice Chair deep commitment to community, and en- Paul Collins Based in Director of the Trans- of Loeb & Loeb LLP. thusiasm will help SCO advance its mission Manhattan, Paul Collins action Services practice of helping New Yorkers build a stronger will be responsible for Previously, he served as group, Christopher foundation for the future.members of the overseeing all retail Managing Partner of the Turner will lead the group’s client engage- and wholesale operations for the Northeast firm’s New York office. His practice focuses National Ethnic Coalition of Organizations’ ments and internal operations. With over 15 years of brokerage experience, he’s been region of Hub International, which includes on the representation of emerging growth Board of Directors. involved in more than 8 million square feet offices spanning across New York, New companies and investment banks in initial of nationally closed transactions and advi- Jersey, Connecticut, Pennsylvania and ❚ PROFESSIONAL SERVICES public offerings, follow-on public offerings, sory assignments. Turner is the US Country Rhode Island and over 700 employees. He is shelf takedowns, registered direct place- Chair for the Royal Institution of Chartered Ecology and Envi- assuming the previous role of Marc Cohen, ments, PIPEs and other private placements. Surveyors (RICS). A licensed New York who was appointed President of Hub Inter- ronment, Inc. He also serves as Co-Chair of Loeb & Loeb’s Real Estate Salesperson, he’s a member national Limited earlier this year. Mr. Col- Maria Lehman, P.E. of both REBNY and ULI, and a perennial Capital Markets and Corporate Department lins holds 20 years of experience as a leader joined Ecology and Envi- mentor to ULI Young Leaders. His career and leads the firm’s Asia Practice. in the insurance brokerage community. ronment, Inc. as Director also includes previously held positions with of Strategic Initiatives, Colliers International, London & Capital, bringing 36 years of and Cushman & Wakefield. leadership experience in EXECUTIVEMOVES public and private sectors. Most recently, she served as COO, Interim Executive Big Promotion? CHICAGO BUSINESS Director of the NYS Thruway Authority and CHICAGOBUSINESS.COM | October 17, 2016

PEOPLEEXECU ONTIVE THE MOVE MOVES Project Executive of the New NY Bridge. She Share the news with the New York NEW HIRES SPROMOTIONS SBOARD APPOINTMENTS this is a great move

MARKETING/MEDIA has been Program Manager and Director business communuty. MNI Targeted Media Inc., Stamford, CT Honor your executives

Heather Hein has been promoted Announce new hires, promotions to Vice President of Sales for the on numerous transportation projects and Northwestern Region, which spans from Chicago to San Francisco. Hein’s promotion was part of a with a frame or plaque and board appointments with national realignment, designed to ensure that MNI continues to served as Commissioner of Public Works deliver industry-leading customer service to its more than 1,200 clients across the country. of their Executive Moves in Erie County. She will work closely with E CRAIN’S EXECUTIVE MOVES listing in Crain’s. & E’s senior leadership to develop, oversee, For more information, Reprinted with permission from Crain’s Chicago Business. © 2016 Crain Communications Inc. All rights reserved. Further duplication without permission is prohibited. Visit www.chicagobusiness.com/section/reprints. and implement programs and projects that please contact Debora Stein at Contact Lauren Melesio for more information support the company’s growth strategy, [email protected] [email protected] tel 212.210.0707 including business development, M&A www.crainsnewyork.com/execmoves activity, and quality assurance practices.

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36 | CRAIN’S NEW YORK BUSINESS | MAY 29, 2017

P035-36_CN_20170529.indd 27 5/25/2017 6:20:25 PM GOTHAM GIGS

NUTS AND BOLTS: Rodriguez supervises a team of 25 mechanics that keeps the aluminum-framed bikes on the road.

BY LANCE PIERCE

Staying in gear Following in her brother’s tire tracks led this cyclist to a career as a Citi Bike lead mechanic

rowing up on the Lower East Side, Lisa “It’s not a man’s world anymore,” she joked. Rodriguez rode bicycles handed down from Rodriguez learned how to ride a bicycle at age 7, taught her five older siblings, which she was allowed by her older brother, Anthony. “I was always following him LISA RODRIGUEZ to pedal only between Avenue C and the FDR around, and he was really into bikes and cars,” she said. GDrive. She still remembers her first brand-new bike, a gift She recalls afternoons spent watching him fix and build AGE 26 from her mom when she was 15 that became her ticket to bicycles and asking him a thousand questions. BORN Crown Heights explore more of the city. She rode that pur- By the time she was a teenager, Rodri- RESIDES Lower East Side ple Pacific mountain bike out of the Lillian guez was working on bikes herself. She was One Citi Bike EDUCATION Murry Bergtraum Wald Houses and straight up the West Side “ the only girl among her friends who liked came in cut High School for Business Careers; of Manhattan. tinkering with gears and chains, she said. Recycle-a-Bicycle training program “I wasn’t scared at all,” she said. in half. How While in high school Rodriguez entered VELO-CITY Rodriguez keeps four Now Rodriguez is a lead mechanic for Citi does that a summer training program at Recycle-a- bicycles, including a minibike, in Bike, helping other New Yorkers experience happen? Bicycle, an organization that refurbishes her family’s Alphabet City apart- freedom on two wheels. With 10,000 of its ” discarded bikes, gives apprenticeships to ment. She said she navigates the city by bike 90% of the time and bicycles cruising around Manhattan, Brook- bike mechanics and runs cycling programs by subway the rest. “I save a lot lyn and Queens, the Citi Bike program takes in approxi- at public schools. She still leads summer rides to such of money that way,” she said. mately 200 per day for repairs at its Gowanus garage. Some places as Roosevelt Island, Coney Island and Staten Island MORNING ZEN Her favorite arrive in rough shape—found underwater or with missing for the nonprofit’s Kids Ride Club. “You’ll get newcomers time and place to cycle is 9 a.m. parts. “We like trying to come up with stories to figure out who’ve never even left their neighborhood, and they get all around Brooklyn. “I like to see all what happened,” said Rodriguez. “One Citi Bike came in cut excited,” said Rodriguez, who can relate. the other people riding their bikes.” in half. How does that happen?” She is now considered the mechanic in her family. Even GIRL PEDAL POWER Groups Rodriguez has noticed more female mechanics in bike big brother Anthony, who works for the Metropolitan supporting female cyclists and bike shops around the city since joining the company three years Transportation Authority, seeks her advice. “The guy who mechanics include WE Bike NYC, Gear Femmes and Bicycle Habitat ago. Of Citi Bike’s 106 technicians, 11 are women—up from used to teach me is now the one always asking me ques- Women’s Cycling.

BUCK ENNIS four in 2014—according to its parent company, Motivate. tions,” she said. “It’s great.” — HILARY POTKEWITZ

37 | CRAIN’S NEW YORK BUSINESS | May 29, 2017

P037_CN_20170529.indd 37 5/26/17 2:25 PM SNAPS

Met Opera’s 50th hits a high note The Metropolitan Opera celebrated its 50th anniversary May 7 with a five-hour all-star concert at Lincoln Center. Singers including Plácido Domingo, Renée Fleming and Anna Netrebko performed selections from Porgy and Bess, Samson et Dalila, Antony and Cleopatra, and others. Three famed conductors—Marco Armiliato, Met Music Director Emeritus James Levine and future Met Music Director Yannick Nézet-Séguin—took turns leading the orchestra.

Retired soprano Teresa Stratas with Renée Fleming during the Met’s anniversary dinner. Fleming performed a scene from Massenet’s Thaïs with Plácido Domingo that evening and sang in what may have been her last staged opera the following week. Fleming has announced she will continue to perform concerts and make recordings.

Ann Ziff, anniversary vice chairman for the gala and vice chair of the Met Opera board of directors; mezzo-soprano Susan Graham, who performed that evening; and Tony Award–winning actor, director and choreographer Tommy Tune at the benefit, which raised more than $8 million.

A helping hand for the often forgotten Services for the UnderServed, which offers support to the disadvantaged and disabled, Legal aid for held a fundraising dinner women in need May 2. Attendees included The nonprofit Her Justice Donna Colonna, the organi- raised a record $2.2 million zation’s chief executive; Aaron at its April 26 gala. Dannenberg, managing Catherine Douglass, director at Houlihan Lokey; founder of the organiza- and Andrew Hurwitz, a tion that trains lawyers to partner at Frankfurt Kurnit provide pro bono services Klein & Selz and a board to low-income women, is member of the nonprofit. flanked by her husband, Dr. Bruce Dohrenwend, and artist-photographer Hayden Greene.

Chefs Marc Forgione of Restaurant Marc Forgione, Laurent Tourondel of L ’ Amico, Floyd Cardoz of Paowalla and Michael White of Altamarea Group all helped prepare the meal. The dinner, held at Emily Johnson, an attorney at Wachtell, Lipton, Rosen & Katz; Amy Barasch, Kimpton Hotel Eventi, executive director of Her Justice; Rebecca Algie, a lawyer accepting an award on raised a record $654,000. behalf of her firm, Seward & Kissel; andChristopher Updike, a lawyer at Debevoise & Plimpton, attended the event at the Grand Hyatt New York.

METROPOLITAN OPERA, JULIE SKARRATT, STEPHANIE BERGER. MARIAN GOLDMAN OPERA, JULIE SKARRATT, METROPOLITAN SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO: [email protected].

38 | CRAIN’S NEW YORK BUSINESS | May 29, 2017

P038_CN_20170529.indd 38 5/26/17 2:27 PM PHOTO FINISH

On guard s invariably happens after a major terrorist attack elsewhere, New York law enforcement dramatically ramped up patrols in response to last week’s bombing in Manchester, England. Big public gathering places, such as Times Square and Yankee Stadium, saw marked Aincreases in counterterrorism officers, and the NYPD stepped up bag searches as commuters and tourists entered the subways. About 1,500 of the city’s 36,000 police officers are deployed full-time to prevent terrorism, and much of the tab is picked up by the federal government, which helps pay for security cameras, chemical-detection equipment, bomb-sniffing dogs and intelligence gathering. According to Comptroller Scott Stringer, the city receives $190 million annually from the Department of Homeland Security for counterterrorism measures. However, this money would be in jeopardy in the unlikely event Congress approves the budget put forward by the Trump administration last week. That budget seeks to eliminate $767 million from state and local FEMA grants, of which New York City is the largest recipient. — AARON ELSTEIN BUCK ENNIS

May 29, 2017 | CRAIN’S NEW YORK BUSINESS | 39

P039_CN_20170529.indd 39 5/26/17 6:53 PM EXPLORE BROOKLYN Issue date: July 10 Close date: June 15 Materials due: June 22 Brooklyn is where everyone wants to be Crain’s Explore Brooklyn advertising section lets you spotlight your business opportunity and reach an engaged and informed audience of top decision makers. Topics may include: ■ Commercial real estate developments ■ Small business ■ Non-proﬁ t organizations ■ Activities and attractions For more information, contact Irene Bar-Am at 212.210.0133 or [email protected]