Mayor's Economy
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20091012-NEWS--0001-NAT-CCI-CN_-- 10/9/2009 7:34 PM Page 1 INSIDE REPORT TOP STORIES SMALL BUSINESS Enough shouting! The CIT grabs headlines, cold, hard facts on but local rivals health care reform grab its customers ® PAGE 17 PAGE 2 Brooklyn faces VOL. XXV, NO. 41 WWW.CRAINSNEWYORK.COM OCTOBER 12-18, 2009 PRICE: $3.00 looming luxury rentals A + B deluge C C PAGE 2 LOOK WHO Museums build big shows around single works of art REMADE Mayor’s PAGE 3 BURDEN. AND THEN SOME: economy: Why analysts see The city’s planner-in- chief will rezone her six more losing 100th neighborhood Grades quarters for Citi NEW YORK this week. IN THE MARKETS, PAGE 4 are in The strongest hand Socialite-slash-planning Bloomberg gets for Aqueduct casino commish Amanda Burden an A for quality of EDITORIAL, PAGE 10 has rezoned a fifth of the city, life, a C for budget championed good design and driven big developers nuts BY DANIEL MASSEY when mayor Michael Bloomberg BY THERESA AGOVINO announced last October that he wanted to change the law so he when amanda burden was 12, her step- could run for a third term,he argued father, CBS founder William Paley, that his experience as “a business- turned the front lawn of the family’s Man- man with expertise on Wall Street hasset, Long Island, home into a testing and finance” would help the city confront an unprecedented eco- ground. He littered the yard with massive nomic crisis. A year later, the local BUSINESS LIVES granite models of the skyscraper he was unemployment rate is 10.3%,a 16- GOTHAM GIGS building to house his company in mid- year high. The city is down nearly town Manhattan. 100,000 private-sector jobs from This doctor is for the an August 2008 peak. About birds P. 27 “He was obsessed with design detail,” says Ms. Burden of the man she calls one 125,000 more New Yorkers live in G ANNE FISHER writes of her greatest influences. See GRADING MIKE on Page 14 on the importance of Now the same is said of Ms. Burden. mentoring youths P. 27 As chair of the New York City Plan- G MOVERS & SHAKERS ning Commission, her decisions on every- Jann Wenner brings the P. 28 thing from building design to land use are Analyst’s stars together transforming vast swathes of the landscape G GAEL GREENE gets a in all five boroughs. In her nearly eight taste of A Voce P. 31 years in office, Ms. Burden has led the re- audacity zoning of about 20% of the city’s thou- sands of blocks, including 368 in Jamaica, floors firms INDEX Queens, 299 in the Throgs Neck section of the Bronx and 250 in Canarsie, Brook- REAL ESTATE DEALS PLUS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _7 lyn. Her 100th rezoning, which will af- THE INSIDER Audit Integrity’s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _8 fect 86 blocks in and around Carroll OP-ED _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _11 Gardens in Brooklyn, is slated to be final- claim that Hertz NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _12 ized this month. Along the way, she has may fail sparks suit CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _23 garnered praise from the design crowd and FOR THE RECORD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _25 howls of complaint from the developers BY AARON ELSTEIN EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _27 she drives nuts. RÉSUMÉ REVIEW _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _28 See LOOK WHO on Page 26 a small research firm piously WEEK ON THE WEB _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _30 named Audit Integrity Inc. ven- buck ennis tured last month where few finan- cial analysts dare to tread: It de- 41 FASTEST-GROWING COMPANIES clared which of the nation’s biggest 5 companies face “the greatest risk of WHAT DO BLACKROCK, HESS, bankruptcy”in the next 12 months. Not surprisingly, plenty of out- ELECTRONIC EDITION J. CREW AND SCHERING-PLOUGH fits were furious.An outraged CBS Corp.called Audit Integrity’s work HAVE IN COMMON? SEE PAGE 20 “flawed pseudo-analysis” with “no NEWSPAPER See AUDACIOUS on Page 16 71486 01068 0 20091012-NEWS--0002,0003-NAT-CCI-CN_-- 10/9/2009 7:27 PM Page 1 technology,hiring more staff and research- IN BRIEF ing more retailers. Rosenthal gains “We’re getting calls on the hour,” says THE SALVATION ARMY GREATER NEW YORK Kenneth Rosenthal Kleiner, executive vice DIVISION IS LAYING OFF 120 EMPLOYEES, IN president and grandson of founder Imre its second round of staff cuts in less than six Rosenthal. months.The layoffs will come from the from CIT’s pains Rosenthal, CIT and a handful of other agency’s foster boarding home and preventive lenders provide clothing manufacturers care program, which is closing locations in with advance funding,based on future pay- December because the program’s city funding ments from retailers. Known as factoring, was discontinued, according to a filing with the Apparel makers turn to smaller lender the system provides manufacturers with state Department of Labor.The Salvation the capital to produce merchandise for up- Army, which had an operating budget of sign firms and vendors, and has gained coming seasons without waiting months $142.6 million for its fiscal year that ended BY ADRIANNE PASQUARELLI more than 20 clients, including big names for retailers to pay up. Rosenthal also col- Sept. 30, is grappling with how to pay for the like Steven Madden Ltd., to add to its ros- lects payments from retailers for its clients. skyrocketing needs for its services due to the lender to apparel manufacturers CIT ter of more than 400. Rosenthal may be recession. Officials at the Salvation Army Group Inc. may be grabbing headlines for tiny compared with CIT, but it counts The risk is all relative declined to comment. its financial difficulties, but family-owned high-profile designers such as Diane von while factoring has become a riskier Rosenthal & Rosenthal Inc., which pro- Furstenberg and Carmen Marc Valvo venture as the retail environment has TWO BIG PROPERTIES, ST. JOHN’S HOSPITAL’S vides a similar service, is grabbing new among its clientele. As it continues to pro- frayed, CIT got into financial trouble by TWO-ACRE CAMPUS IN ELMHURST AND MARY clients. vide a stable lending facility to its cus- straying into student loans and mortgages Immaculate Hospital’s four-acre campus in Since midsummer, Rosenthal has re- tomers during tough times, it’s trying to that seemed to offer bigger profits. Now, Jamaica, will hit the auction block Friday. ceived hundreds of calls from worried de- capitalize on CIT’s woes by updating its the lending giant—which had factoring Starting bids for the Queens sites are $13.5 volume in excess of $42 bil- million and $4.35 million, respectively.The lion last year—is facing a bankruptcy sale is one of a rising number of GETTING CALLS: possible bankruptcy filing if a Michael Stanley (left) both commercial and residential real estate and Kenneth Rosenthal proposed debt exchange pro- bankruptcy auctions. Bidding will shed light on Kleiner of Rosenthal & posal fails to attract bond- the state of the real estate market.The auction Rosenthal, where holder support by Oct. 29. comes eight months after the operator of the factoring accounts for By contrast, not only is two hospitals, Caritas Healthcare, filed for 75% of total business. Rosenthal family-owned;the Chapter 11 bankruptcy protection. 71-year-old company prom- ises to treat its clients like composite photo crain’s family. Though sources say the firm generates less than BY THE NUMBERS $100 million in revenues on loan volume in excess of $5 Weekly shift of the city’s economy billion, factoring represents READ THE FINE PRINT. Yes, retail sales staged 75% of its total business. a surprising rally last month, but consumers still Rosenthal also offers asset- need bargains.