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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 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 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 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 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. That’s why their debt levels have based lending and loans to fallen all year. Growth will come, but slowly. fine art dealers, and main- tains offices in Los Angeles -45% +11.6% 2.39M and Shanghai. DROP IN office RISE IN HFRX JOB OPENINGS “There are reasons one rents, factoring in Equity Hedge in August, fewest would go to CIT in its hey- concessions in Index of fund since records day, but now under the shad- 3Q vs. a year performance, began in 2000 ow of the potential failure of earlier year to date (U.S. Labor Dept.) (Cushman & (Hedge Fund the parent company, the Wakefield Inc.) Research Inc.) smaller factors like Rosen- thal are in a better position,” SAME STORE SALES Excluding Wal-Mart Stores Inc. says Andrew Jassin, co- Percent change year over year founder of the Jassin- O’Rourke Group, a retail

buck ennis See ROSENTHAL on Page 26 Get ready, Brooklyn: flood o

Source: Retail Forward Gold St. in September. Three huge apartment “This is the most rental units I have OVERSUPPLY: Residential CORRECTIONS towers Avalon Fort Greene towers to hit downtown ever seen in the neighborhood,”says (left), 80 DeKalb (center) R. Donahue Peebles is among those involved in bidding on the Joy Cox, who grew up in the area and The Brooklyner are all Aqueduct racino development. His name is misstated in the market; unsold condo and is now a broker at Urban editorial on Page 10 of this issue. vying for tenants. units add to the glut Sanctuary. “There are too The number of people working in the accounting field in New York many, too close together, City rose by 1,400 between August 2008 and August 2009. This fact was misstated in the text of a graphic accompanying Crain’s and I think a lot of units will Sept. 28 ranking of the largest accounting firms in the New York BY AMANDA FUNG sit there for a while.” area. The list of the New York area’s largest construction companies downtown brooklyn is awash in fast- Collision course published Oct. 5 was ranked by 2008 area revenues and not by food shops, shoe stores, subway stops and the three new luxury projected 2008 area revenues, as was stated in the headline. cutting-edge culture. Now it’s about to towers—the first high-rise find itself inundated with something rentals ever to hit the local vol. xxv, no. 41, october 12, 2009—Crain’s New York Business unimaginable just a few years ago: luxury market—are debuting at a (issn 8756-789x) is published weekly, except for combined issues rental apartments. bad time.Landlords at sev- the 5th week of June and the 1st week of July, the 2nd and 3rd weeks of July, the 4th week of July and the 1st week of August, Next month, The Clarett Group will eral nearby stalled condo- the 4th and 5th weeks of August, the 3rd and 4th weeks of open the leasing office for the tallest minium projects are busy November, and the 3rd and 4th weeks of December by Crain Communications Inc., 711 Third Ave., New York, NY 10017.Peri- building ever built in Brooklyn, the 54- converting their unsold odicals postage paid at New York, N.Y., and additional mailing story, 490-unit apartment tower dubbed units to rentals, and sever- offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, The Brooklyner. At the same time, Forest al failed projects that have MI 48207-2912. for subscriber service: Call (888) 909-9111. City Ratner Cos. will begin marketing its been turned over Fax (313) 446-6777.$3.00 a copy, $59.79 one year, $109.79 two 365-unit rental at 80 DeKalb Ave. Both to their banks years. (GST No. 13676-0444-RT) ©Entire contents copyright 2009 by Crain Communications Inc. are following the lead of nearby Avalon may follow suit. All rights reserved. Fort Greene, which began aggressively It also comes as pushing its own 650-unit entry at 343 rents on similar

2 | Crain’s New York Business | October 12, 2009 20091012-NEWS--0003-NAT-CCI-CN_-- 10/9/2009 7:13 PM Page 1

What’s in a name? Plenty of money for Street’s bankers; big brands pay up

BY AARON ELSTEIN

there’s an old saying among Wall Streeters that only two things mat- ter in life: how much you get paid and how others regard your firm. A survey of banking professionals re- leased last week by the jobs Web site Vault.com demonstrates just how true that is: The best-paying firms also happen to be the best-regarded. Leading Vault.com’s list of the 50 Singular sensations most prestigious banking employers for 2010—for the 10th consecutive

crain’s photo composite photo crain’s year—was Goldman Sachs, even though the bank’s public reputation et’s Water Lilies,” a special show “The economic pressure at mu- museum opens a big show of Mex- has suffered in this era of massive Tight budgets force created around one of the museum’s seums is motivating them to pursue ican artist Gabriel Orozco’s work. government bailouts. By quickly re- museums to scale most famous paintings,which is ac- new strategies,” says David Resni- Still, most museums are greatly covering from last year’s stumble and tually on view year-round on a dif- cow, a museum consultant. “It has scaling back their exhibitions. The continuing to coin massive sums, down; shows based ferent floor. jolted them out of the special exhi- new director of the Met, Thomas Goldman is on pace to shell out com- Forced to cut costs because of bition cycle.” Campbell, told The Art Newspaper pensation and benefits at an average on one iconic work the recession, museums are finding in September that the museum will annual rate of $772,000 per person creative ways to get visitors in the Not dead yet cut the number of expensive loan this year,according to its latest filings. BY MIRIAM KREININ SOUCCAR door for less. They are borrowing blockbusters aren’t completely shows it puts up by nearly 25% to At Blackstone Group, which was single paintings and building entire dead, of course. The Guggenheim save money. The Met typically ranked No. 2 on the list, the pay is the metropolitan museum of exhibitions around them—along Museum is currently presenting mounts 30 to 35 exhibitions a year, even more fabulous. Art has built its major fall show with the necessary hype—or Kandinsky, a full-scale retrospec- including 10 to 12 major loan The private equity around one painting, Vermeer’s mounting shows based on their tive of nearly 100 of Vasily Kandin- shows.The Met did not return calls powerhouse is on masterpiece The Milkmaid. own collections. Whichever strate- sky’s paintings, some from its own for this article. $2.6MILLION track to award its Estimated The Met’s summer blockbuster, gy arts executives are using, many vault,but many never before seen in The Brooklyn Museum—forced average payout 1,340 employees an “Michelangelo’s First Painting,” say the era of big traveling block- the United States. In November, to cut around $3 million out of this year at average of $2.6 mil- also offered visitors the chance to busters featuring numerous works MoMA is opening “Bauhaus 1919- its operating budget this year be- Blackstone lion this year, judg- lay their eyes on a singular work, from multiple lenders that began in 1933: Workshops for Modernity,” cause of losses in endowment in- ing by data in its The Torment of Saint Anthony. 1979 with the record-breaking dis- featuring more than 400 works, come, donations and earned in- most recent earnings and annual re- The is play of treasures from King Tut’s many coming to the U.S. for the come—temporarily closed one of ports.It may rank lower on Vault’s list currently touting its exhibit “Mon- tomb, is on its way out. first time; and in December, the See SINGULAR on Page 14 only because it’s so much harder to get a job at Blackstone, which has a mere 1/20th of Goldman’s head count. The biggest moves up the list says they will be in the same range. once,” says David Maundrell, presi- came from the banking boutiques. Already,though,those prices are dent of brokerage Aptsandlofts.com. Evercore Partners, a merger-advice under pressure. From the start, Ava- “May the best man win.” specialist, jumped to No. 8 from No. of luxe rentals lon has been offering two months’ What makes that harder still is 17, and Greenhill & Co. rose seven free rent on leases of 12 months or that downtown Brooklyn’s new lux- places, to No. 6.These firms may not longer. More recently, it will throw ury rentals compete not just with pay quite so well as their larger ri- units in Manhattan have fallen as “Maybe we will take lower rents in $500 toward the security deposit each other but with big projects else- vals—Evercore’s average annual pay- much as 10% in the past year, ac- in the initial round,” concedes Ms. if the tenant signs a lease on the first where around town—especially in out this year is on pace for $500,000 cording to brokerage Citi Habitats. Hackett, who is pinning her longer- visit. The developer hastens to add the glutted mar- and Greenhill’s for $460,000—but at “I would have loved not to have term hopes on the needs of thou- that those concessions come on top ket.There, a luxury studio in La Ri- least they are free of the compensa- [so much] competition,” says sands of Brooklynites “to upgrade” of what it calls a “youtopia,” with vage, at 21 West St., with a 24-hour tion shackles that the government Veronica Hackett, Clarett’s co- their living accommodations. amenities including a 1,000- doorman,concierge service and oth- has imposed on bailed-out banks. founder. “But we are in it for the Clifford Finn, managing direc- square-foot residents’ lounge and a er perks, is listed on StreetEasy.com Clearly, those bailouts have had long term.” tor of new development at Citi one-acre urban park plaza. for $1,795 with no broker’s fee. an impact on how potential employ- She and her rivals may have to Habitats,which is marketing Forest “It will be a challenge,” says ees view the banks. The one institu- be. Since December 2006, con- City’s DeKalb Avenue tower, is not Failed condo projects Daniel Baum, president of broker- tion to post a significant decline in struction on 2,780 rental units has intimidated by all the competition. as developers ramp up their mar- age The Real Estate Group.“I don’t standing was Citigroup. Its con- either begun or been completed,ac- “I am not so worried, as long as keting efforts, however, they will know if there is much demand for sumer banking division dropped 22 cording to the Downtown Brook- pricing is correct,” he says. “People also face rising competition from these upscale [Brooklyn] proper- slots, to No. 41, with survey respon- lyn Partnership. In addition, 1,902 still pay for superior product.” the owners of BellTel Lofts and ties if someone has the option to ders observing the bank was “in trou- condo units have come on stream, Mr. Finn estimates that prices other condominium projects that live in Manhattan in a similar ble” and has an “uncertain future.” many of which may turn rental, in- for studios at 80 DeKalb will start were launched at the peak of the apartment.” Regardless of where they punch dustry experts say. roughly at $1,700 a month and one- market and are now trying to rent Developers of the Brooklyn the clock, many Wall Streeters see With supply soaring just bedrooms at $2,200, but those out unsold units. projects insist their proximity to bright prospects for themselves. when the recession is damp- numbers have not been finalized. Similarly, several other condo downtown Brooklyn’s charms—in- Most lines of business have perked up ening demand, some- Those figures are in line with Aval- developments that have been taken cluding the nearby Brooklyn Acad- since last fall’s markets meltdown— thing has got to give. on Fort Greene, where monthly back by their lenders, including the emy of Music, trendy Smith Street and there are 20% fewer employees to Most likely, landlords rents for studios start at $1,699 and 108-unit Forté Tower and the 246- restaurants, Fort Greene Park, and fight over bonus pools. According to will opt for rent cuts one-bedrooms start at $1,801. unit be@schermerhorn,may also be access to a dozen major subway a separate survey of banking pros by over carrying boat- Rents for studio to two-bedroom remarketed as rentals. lines—will give the area the edge. eFinancialCareers.com, more than a loads of empty apart- units at The Brooklyner have not “It will be competitive, with so If not, a second round of price third expect their bonuses to increase ments on their books. been released yet, but Ms. Hackett many units thrown on the market at cuts could be looming.  compared with last year. 

October 12, 2009 | Crain’s New York Business | 3 20091012-NEWS--0004-NAT-CCI-CN_-- 10/9/2009 7:30 PM Page 1

IN THE MARKETS by Aaron Elstein

How long will Citi losing streak last? ast week,Citigroup Inc. announced it would sell its highly profitable Phibro commodities unit.That spares LCiti Chief Executive Vikram Pandit (pictured below) a public relations headache because Phibro’s top trader, Andrew Hall, could collect $100 million in compensation. But it also means Mr. Pandit, who in the past year has unloaded brokerage Smith Barney, a retail banking operation in Germany and an asset management division in Japan, is parting with yet another profitable division. It’s stunning how few of those are left at Citi. The belea- QUARTERED guered bank, which has posted Predicted Citibank losses, in cents per share exactly one prof- 2009 2010 itable quarter 3Q 4Q 1Q 2Q 3Q 4Q since the summer -5¢ -2¢ -1¢ of 2007, is expect- -8¢ -3¢ ed to turn in yet another quarterly loss when it re- ports financial re- sults this week. It -25¢ likely will contin- Source: Thomson Reuters

ue losing money bloomberg news in the fourth quar- ter—and in each and every quarter next year, according to analysts surveyed by Thomson Reuters. Meanwhile, Citi’s biggest bailout buddy, Bank of America, is forecast to return to the black early next year. In short, forget about Citi repaying Uncle Sam any time in the remotely foreseeable future. As Citi auctions off the family jewels—look for it to soon sell its Primerica insurance and mutual fund arm—the remainders increasingly look like the dregs.Take credit cards. Fox-Pitt Kelton analysts think net charge-offs for Citi-branded credit cards rose to 9.5% in the third quarter and a whopping 16% for its retail-partner cards.Total consumer lending losses are expected to reach $3.5 billion. Bankwide, Fox-Pitt looks for $8.9 billion in total charge-offs for the third quarter, 7% higher than in the second quarter, leading to a $2.4 billion net quarterly loss. Put another way, Citi simply hasn’t been very good at the basic blocking and tackling of banking.That’s worrisome, since after all $5 million revolving line to a those asset sales, banking is going to be Citi’s primary business. wholesale coffee roaster

$8 million credit facility to a John Thain shares a few thoughts meat distributor he was last seen in January, when words of wisdom, parsed from a $4.5 million revolving line to metal a story somehow leaked that the for- transcript of his talk, made available importer and distributor mer Merrill Lynch CEO spent $1.2 last week: million to  On collateralized debt obliga- redecorate tions: “To model correctly one $2 million revolving line to a his office— tranche of one CDO took about law firm and Bank of three hours on one of the fastest America computers in the United States. $5 million credit facility to a sacked him. There is no chance that pretty much recycled fiber broker But John anybody understood what they were Thain seems doing with these securities.”  Approved keen lately On Wall Street pay practices: on restoring “Investment banks should not be $7.5 million secured revolving his reputa- giving out multiyear guarantees to line to IT services company tion and has people to get them to change jobs, started ap- which is still happening to some pearing publicly, most notably last extent.” month,when he spoke at the Whar-  On what he thinks of Bank of What credit crunch? ton School on everything from the America CEO Ken Lewis, who state of the economy to the financial fired him last January: “You know, Sterling’s lending, big time. We offer a wide-range of innovative solutions monstrosities known as collateral- it’s tempting to answer that. But I’m designed to improve your bottom line: working capital lines of credit, ized debt obligations. Among his not going to.”  asset based financing, factoring, letters of credit, payroll funding and more.

Call now to speak to a Sterling Loan Officer: 212.757.1100 MARKET VALUE of the 216 million troy ounces of gold stored in a massive vault $228B beneath the Federal Reserve Bank of New York. Last week, gold traded at a record $1,055 per ounce. Most of the gold under the Fed belongs to foreign governments, by the way. www.sterlingnationalbank.com EST.1929. Member FDIC.

20091012-NEWS--0006-NAT-CCI-CN_-- 10/9/2009 6:09 PM Page 1

NEW YORK,NEW YORK edited by Valerie Block

More magazines off the racks he publishing world mourned the loss last week of Gourmet and three Tother Condé Nast magazines. But those were just the biggest names to find their heads on the chopping block. In the first nine months of 2009, a total of 383 magazines shut down in North America, according to MediaFinder.com, the online database of U.S. and Canadian publications. Another 64 publications ceased print editions and went online-only. In the third quarter, 104 magazines folded. “It’s a shakeout,” says Trish Hagood,

president of Oxbridge Communications, buck ennis which owns MediaFinder. “When it’s over, the industry will be strong.” Well, anything’s possible. MediaFinder did not track closings on a quarterly basis until this year, but there are some signs that the bloodletting is slowing. Updated numbers for all of 2008 show 613 magazine closures. Regional titles have been hit hardest this year, with 31 closing, including Tampa Bay Living. But there have been 259 launches this year, and the regional category had the most, with 15 new titles, including Maine Magazine.

barbecue season. return to New York. During a down economy, these programs can generate extra revenue and boost a restaurant’s More advertisers image. “Our goal is to brand reject Pera,” says owner Burak Karacam, who hopes to add marinades, advertisers continue to give salads and breads to the list of conservative commentator Glenn mail-order items. Beck (below) the cold shoulder. At last count, 80 companies had abandoned his popular 5 p.m. READY TO ROLL Real estate program, leaving few nationally AT A RECENT EXPO promoting all matchmaking recognized brands.Taking their things green, some pretty cool place are direct-response ads for say goodbye to brokers. the likes of TheScooterStore.com rides—including Myers Motors’ TriStatePropertyExchange.com, a and spots for Conservatives for personal electric vehicle—were new residential real estate site that Patients’ Rights, according to parked outside Rouge Tomate matches buyers and sellers looking ColorOfChange.org.The restaurant, the event’s host. to trade up or move to new digs, nonprofit began pressuring launched this month. And it’s advertisers to drop the show in offering a sweet deal: free listings August, after Mr. Beck called Eateries meat in October and November. President a racist. Jodie Fanelli and her twin sister, Fox maintains that the new demands Diane, invested $30,000 to start the advertisers have moved to other business, which they describe as time periods and that the network move over, Omaha Steaks. A the eHarmony of residential real has lost no revenue. But growing number of restaurants are estate. Users enter details about ColorOfChange Executive packing and shipping meats to the property they are selling and Director James Rucker figures his customers who want to eat at criteria for the home they want to campaign has, at the very least, home during these lean times. buy, and the site generates the best reduced the value of Mr. Beck’s Midtown’s Pera Mediteranean matches. “There are sites where show.“If there’s no Brasserie is the latest Big Apple you can swap vacation competition for eatery to launch a national online homes. We are spots, it seems mail-order program, offering targeting people like they would chicken and lamb dishes that can who want to sell,” actually be be grilled, broiled or sautéed. Jodie says. taking in less In September, Morton’s TriState is money than Restaurant Group began mailing free for buyers, they steaks to customers in partnership but posting should,” he with Chicago meat purveyor properties for says. Allen Brothers.The Palm sale will cost $25 steakhouses and Peter Luger have come December. Contributors: offered a similar service for several The sisters got the idea Lisa Fickenscher, years. Smith & Wollensky offered when Jodie wanted to sell Matthew Flamm, steaks-to-go over the summer her New Jersey home and Amanda Fung newscom 6 | Crain’s New York Business | October 12, 2009 20091012-NEWS--0007-NAT-CCI-CN_-- 10/8/2009 8:50 PM Page 1

REAL ESTATE DEALS PLUS

“This will be much better than “They got a good deal,” says Foreign buyers see bargains being in two separate buildings,”says Andy Udis of Newmark Knight Mr. Brennan. Advent is currently lo- Frank, who along with colleague cated at 666 Third Ave., while Michael Dreizen represented land- n israeli firm’s deal to buy HSBC Bank USA’s Mr. Liantonio says that buyers Tamale is at 28 W. 44th St. lord The Moinian Group. headquarters at 452 Fifth Ave. for $330 million can now purchase office buildings Mr. Brennan says Michael Gambino and for far less than it would cost to build Advent was attract- Michael Burgio of Cush- signals that foreign investors see Manhattan real them—$800 a square foot, without ed to the building man & Wakefield Inc. rep- estate as a bargain despite the obvious market risks, land costs. Still, the acute lack of fi- because of its prox- resented the tenant. experts say. nancing makes big purchases all but imity to Bryant Park —amanda fung The deal is especially daring since HSBC will vacate all but impossible. In the first nine months and transportation A of this year,sales of properties priced hubs. Advent was 11 stories in the tower after one year, leaving the new owner— at $10 million and up were down represented by When a Hus an arm of Israel’s largest holding company,IDB Group—to fill 80% from the year-earlier period. Newmark Knight has no home the remaining 18 at a time when tenants are scarce. —theresa agovino Frank brokers Mark Weiss and Robert the closure of stores Other foreign and an American Advent + Tamale = Eisenberg. Building falling victim to the recession firms are also betting ON THE partner agreed to owner Brookfield is paving the way for other on a property rebound. buy half of 485 Lex- Grace Building Properties was rep- Grace Building businesses to expand.Such is Over the summer, MARKET ington Ave. with a resented in-house. the case at 11 Christopher St., Youngwoo & Asso- plan to buy the re- advent software signed a lease —theresa agovino between Gay Street and Greenwich ciates and Korea- mainder later. The for 32,000 square feet at 1114 Sixth Avenue. There, Children’s hair salon based Kumho In- deal values the Ave.,the curvy tower better known as Nonprofit grabs and gift boutique Doodle Doo’s re- vestment Bank $381 500,000-square- the Grace Building. The company, cently signed a five-year lease for the reached a deal to buy PRICE PAID per square foot foot tower at $504 which makes software products for deal from Moinian 1,800-square-foot ground-floor 70 Pine St. and 72 for HSBC headquarters million. the financial services industry,plans space.Scandinavian apparel boutique Wall St. from AIG “Foreign buyers to move in May. Financial terms of community healthcare Net- Hus formerly occupied the Christo- for what sources say have been looking at the 15-year deal weren’t disclosed, work is moving its office a few doors pher Street location, but went out of was about $110 mil- New York for a year but sources say asking rents in the down Madison Avenue. business in the spring. lion. Youngwoo re- 6 now,” says Frank building range from $73 a square The nonprofit, which provides The asking rent for the space was portedly said it BUILDINGS SOLD for over Liantonio, execu- foot to $95 a square foot. primary care and social services to $100 a square foot, says Elliott plans to turn 70 $100 million this year tive vice president, Advent purchased Tamale Soft- underserved New Yorkers, has Dweck,the Besen Retail broker who Pine into a residen- capital markets at ware last year and wanted a location signed a 15-year lease for 15,000 represented landlord Alfa Develop- tial condo where Cushman & Wake- large enough for the staff of both square feet at 60 Madison Ave. It cur- ment. Paula Allen of Sotheby’s rep- units will fetch $2,000 a square field Inc. “The general sentiment is companies, according to John Bren- rently occupies space at 79 Madison resented Doodle Doo’s founder foot—a hugely optimistic number. that if we aren’t at the bottom of the nan, Advent’s senior vice president Ave.The asking rent was in the mid- Dana Rywelski. Meanwhile, Israel-based Optibase market, we are pretty close.” for human resources and facilities. $30s per square foot. —adrianne pasquarelli

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October 12, 2009 | Crain’s New York Business | 7 20091012-NEWS--0008-NAT-CCI-CN_-- 10/9/2009 6:10 PM Page 1

that the Legislature was being uncooperative, Mr. Paterson called for “a plan based on need” rather EX-HEVESI FANS: He never said sorry THE INSIDER than a multiyear blueprint. EMOTIONAL FACEBOOK POSTS from ex-loyalists of former state Comptroller Senate Transportation Alan Hevesi reveal the heavy toll that continuing corruption allegations are Martin Dilan by Erik Engquist and Daniel Massey Committee Chairman , taking on their psyches. Two employees in the comptroller’s office blasted Mr. D-Brooklyn, promptly accused him Hevesi for not apologizing or accepting blame for the still-developing scandal, of undermining the Legislature and in which pension fund business was traded for political favors and kickbacks. acting as “judge and jury” on a Last week, Raymond Harding, the former Liberal Party boss, admitted crucial issue. If the governor receiving more than $800,000 for arranging pension fund deals while wanted a need-based plan, he ushering Mr. Hevesi’s son into a Queens Assembly seat. Rough going should have asked his agency for Harris Lirtzman, an assistant deputy comptroller who was a longtime one, Mr. Dilan declared. Hevesi loyalist, wrote: “It will be to my everlasting revulsion (I’d originally used The exchange of public the word ‘shame’ but a friend told me that wasn’t the right word in this for guv on budget statements followed reports of strife context) that I worked for Alan Hevesi for 12 years. I had nothing to do with within Mr. Paterson’s own this madness, but I fervently hope that Alan will do the right thing and negotiating team.The governor acknowledge the mess he created for himself, his family and for all of us who mbattled gov. David Paterson could surely have rejected advice from Lt. Gov. thought he was what he pretended to be: an honest and decent public used smooth and congenial budget negotiations Richard Ravitch to propose cuts and let lawmakers respond. Instead, Mr. servant. Alan, you dishonored yourself and have never once tried to make this fall to get the state out of its $2 billion-plus Paterson wanted to craft a plan with amends to those you hurt.” hole and demonstrate effective leadership, given the Legislature. Even Republicans, His colleague Ahimsa Teabout replied: “Harry, I fully agree with you. I his poor approval ratings and pressure from fellow who are out of power in Albany, are remember speaking with Alan at a luncheon and telling him how much I supported him. I truly believed that he was innocent (that was before all was Democrats to withdraw from the 2010 election. being included in talks, and they E know why: Mr. Paterson does not revealed)! I felt sickened to know that he had Predictably, the opposite has want to be held responsible for been so dishonest, especially in light of occurred.The first public more than $2 billion in unpopular the standards he held us (the fissure opened late last week service cuts, taxes and fees. employees) to in the agency. I also felt when the governor announced “They didn’t want us in the bad about the collateral damage that room before,” says Assembly occurred as a result. People’s lives he would not support the five- Minority Leader Brian Kolb,R- changed [forever]! I only hope that those year capital plan proposed by Canandaigua. “Now that they’ve who were not aware can one day free their his own Department of got a real problem, they want to hearts from the hurt. Someone once Transportation, or that of the share the pain.” said, ‘You are who you pretend to be, so be careful who you Metropolitan Transportation pretend to be.’ ” Authority, which he largely Wynning formula Mr. Hevesi has denied controls. for Aqueduct? Alan Hevesi any wrongdoing. Ray Harding He called the plans “simply bloomberg news after reaching a labor peace deal news daily GOV. PATERSON unaffordable, given New York’s last week with the Hotel Trades is looking to Steve Wynn Murphy Michael share the pain of current fiscal condition,” and Council, may be looking developer, sources say. He met with , D-Glens Falls, and breaching the added, “I will not agree to raise to patch another hole in his bid for Don Cogsville, chief executive of a McMahon, D-Staten Island, for state’s budget the Aqueduct racino—the lack of a Manhattan-based firm that invests “wining and dining donors” with gap. taxes, which would be required minority presence—by teaming up in real estate, an insider says. Wynn Vice President Joe Biden—though

bloomberg news to fund these plans.” Hinting with an African-American also could join forces with Florida- former Vice President Dick Cheney based R. Donahue Peebles, whose own attended fundraisers for bid with MGM Mirage is Republicans including Mr. considered a long shot, according to McMahon’s predecessor, Vito another insider. A Wynn spokesman Fossella. DCCC statements, says there’s “no truth” to the rumors. meanwhile, deride Assemblywoman Dede Scozzafava, R-North Country, a House candidate, as an “Albany Jazz clubs politician.”The DCCC previously out of tune begged another Albany politician, state Sen. Darrel Aubertine, to run council speaker Christine Quinn is against her. urging the owners of a dozen prominent jazz clubs to pay into a pension fund for musicians. In a Yassky looks letter to clubs such as Birdland, Blue at next move Note and Jazz Standard, Ms. Quinn writes that their profits from the it took only a week for the first 2007 elimination of sales tax on rumor to pop up about what admission should be put into the Councilman David Yassky will do fund. Broadway theaters following his defeat in the enhanced performers’ runoff election for city benefits when provided comptroller. Word was such relief in the 1960s. that he would be named a The speaker asks club deputy mayor if Mayor owners to meet with Michael Bloomberg wins a Local 802 officials, whose third term. But Mr. Justice for Jazz Artists Yassky, D-Brooklyn, says, campaign has brought “I have never spoken to buck ennis attention to the issue. David Yassky anyone in the Bloomberg administration about working there.” Propaganda His term expires Dec. 31, and from both sides his future chances for elected office diminished when he blistered the propaganda from the Democratic Working Families Party in a Daily and Republican congressional News op-ed last week.The party campaign committees has become helped turn the election in favor of almost comedic.The NRCC last Mr. Yassky’s opponent, week blasted freshman Reps. Scott Councilman John Liu.  For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider

8 | Crain’s New York Business | October 12, 2009 s s s s $EDICATED"USINESS3PECIALISTSTOGETYOUTHEANSWERSYOUNEED FAST 20091012-NEWS--0010-NAT-CCI-CN_-- 10/8/2009 8:52 PM Page 1

VIEWPOINT Best bet for Aqueduct project editor in chief Rance Crain publisher, vp Jill R. Kaplan he state wants to create a gambling discussion of the criteria that will be used to make a selection. editorial director Greg David operation at the Aqueduct racetrack in It is clear, however, that two considerations should be EDITORIAL Queens for a simple reason: It needs the paramount. editor Xana Antunes managing editor Glenn Coleman hundreds of millions such an operation The most important issue is money. About half of the deputy managing editors Valerie Block, will send its way to plug gaping holes in bidders are offering somewhere between $275 million and Erik Ipsen contributing editor the budget. $300 million as an up-front payment. No one who isn’t in Elizabeth MacBride Others have grander aspirations for the that ballpark should be considered. SL Green meets that columnist Alair Townsend senior reporters Theresa Agovino, racino, including creating a new entertainment destination threshold, and its finances also appear solid enough to Aaron Elstein, Erik Engquist, Lisa Fickenscher, in Queens to add jobs and spur development in the area. guarantee it will be able to meet the commitment. It also Matthew Flamm, Miriam Kreinin Souccar T reporters Barbara Benson, Amanda Fung, Whatever the goal, it is clear that one bidder is most likely promises to open next April, a timetable no one can beat. Daniel Massey, Adrianne Pasquarelli, to succeed: the partnership put together by New York real That’s important, because the state’s take of each day’s Hilary Potkewitz art director Steven Krupinski estate giant SL gambling will start deputy art directors Carolyn McClain, Green. sooner. Delaware Daniel Mednick SL Green seems staff photographer Buck Ennis Like so many North can’t be taken copy desk chief Wendy Zuckerman things involving best-qualified to seriously, given its copy editor Thaddeus Rutkowski research editor Denise Southwood New York’s state previous default. www.crainsnewyork.com government, the path make Aqueduct The second web editor Brian Tracey Elisabeth Butler Cordova to this decision has senior producer a young question to be producer Kira Bindrim been tortuous. An answered is which EDITORIAL AND ADVERTISING OFFICES earlier competition professionals’ proposal is most likely 711 Third Ave., New York, NY 10017-5806 was won by the to result in a facility editorial: 212.210.0277 Fax 212.210.0799 destination advertising: 212.210.0259 politically connected that will go beyond Cable craincom nyk Delaware North the kind of utilitarian Fax 212.210.0499 newscom Entire contents ©copyright 2009 Crain Corp., which offered gambling operations Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP $370 million and then defaulted within months because it that have been established at other racetracks in the state. Inc., used under license agreement. couldn’t raise the money. In the latest round of bidding, six While Mr. Wynn brings the most glitz, he faltered with a groups ranging from gambling impresario Steve Wynn to similar project in Mississippi, and his plans overshoot the TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. Florida developer Donald Peebles to Delaware North market. SL Green has extensive New York connections, $3.00 a copy, $59.79 one year, $109.79 two years. (again) have offered proposals. minority participation and a gambling industry partner, www.crainsnewyork.com The decision-makers—the governor, the Assembly the Hard Rock Cafe, that seems best-qualified to make ADVERTISING AND MARKETING advertising director Trish Henry speaker, the Democratic Senate leadership—have dragged out Aqueduct into a young professionals’ destination that real estate sales manager Cornelius P. Gore the decision for months. Worse, some contenders have been would have important benefits for Queens and the city as senior account managers Irene Irvill, Courtney McCombs, William E. Squitieri allowed to revise their proposals, and there has been no public a whole. account executives Anthony Mowad sales manager, classified print & online John Gallagher sales coordinator, print & online CRAIN’S ONLINE POLL LETTERS TO THE EDITOR Lulé Haznedari newsletter product manager Alexis Barney IS A TAX CREDIT credit Todd J. Masura 313.446.6097 marketing director Amy Crossman TO ENCOURAGE HIRING Airport’s clogged arteries marketing manager Jill H. Bottomley circulation manager Andrea Richardson A GOOD IDEA? assistant circulation manager BEFORE FIXING RACETRACK, —richard anderson Rosalie Ford Date of poll: Oct. 7 HEAL THE ROADWAYS CEO 149 votes general manager, interactive Delta Air Lines Marc Minardo recent stories in Crain’s discuss plans to web developer, interactive Yes. It will help jump-start employ casino gambling to revive the historic Chris O’Donnell hiring and accelerate Aqueduct Racetrack. As the three largest POLL COMMENTS economic growth. airlines at nearby JFK Airport, we do not take a SPEAKING AS A (VERY!) small business owner who NEW YORK PRODUCTION position on this particular issue. We are, obsesses over whether or not to hire anyone, production and pre-press director however, deeply concerned about any plans for full time or part time, I can say that no tax cut Michael Corsi advertising production manager southeastern Queens that fail to address the would ever convince me to hire anyone. What Suzanne Fleischman Wies 50%. inadequate transportation system to and from drives employment is demand. If I experience JFK—specifically, the Van Wyck Expressway demand, or the prospect of sustained demand, PUBLISHED BY CRAIN COMMUNICATIONS INC. and the Belt Parkway, both of which remain then I will hire. If not, I will hunker down and chairman Keith E. Crain unacceptably congested during most of the day. live with being understaffed. My imagination president Rance Crain

While the goal of stimulating the economy may be limited, but I can’t imagine anyone secretary Merrilee Crain 50%. of southeast Queens is laudable, any plans that hiring based on tax credits. treasurer Mary Kay Crain executive vp, operations William Morrow exacerbate the already dire traffic situation —david arnow senior vp, group publisher Gloria Scoby would be counterproductive. We strongly group vp, technology, circulation, recommend that redevelopment be preceded WHY NOT JUST SUSPEND federal payroll deductions manufacturing Robert C. Adams No. This is just another form of vice president/production & corporate welfare. Plus, if by a commitment from both the city and the for six months? That truly would stimulate the state to enhance the capacity and effectiveness economy. Employers would have more actual manufacturing David Kamis there is no demand for a Paul Dalpiaz company’s product, a tax of the two primary roadways that service JFK. dollars to apply to payroll, and workers would chief information officer break won’t be enough to get corporate circulation/audience —dave barger have more in their pockets. Why take (by way of development director Kathy Henry the firm to hire. CEO payroll taxes), then ship (to Washington), count, JetBlue Airways and return (to NYC employers), just so founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: Go to government can say,“See what we did for you?” www.crainsnewyork.com/poll to have your say. —gerard arpey Direct action is more efficient.

bloomberg news CEO, American Airlines lance spodek

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small businesses; and the newly en- acted MTA tax—firms have found that the recession has sharply re- duced revenues. At the same time, credit is tight because lenders just aren’t lending, crippling the business community’s ability to ride out the recession.And now, yet another financial burden is being proposed by the council. Let’s be clear right up front:This isn’t about the big, bad business community not wanting to do what’s right for workers. Business owners know better than anyone that they need to offer employees the best benefits possible in order to stay competitive and attract and re- tain the best workers. In fact,in a sampling of members of our five chambers of commerce, two out of three business owners al- ready offer paid sick days, and of those that do, nearly half already of- fer more than five days. For those that don’t offer five days or more, it

john h.john howard is most likely that they simply couldn’t afford to stay in business if they did. Many businesses also offer a combination of time off, including Small businesses: sick days, vacation days, holidays and even personal days. Beyond that, the Family and Medical Leave Act kicks in when applicable to as- We’re mad as hell sist workers, as does workers’ com- pensation. One business owner with more BY CARL HUM AND NANCY PLOEGER than 10 employees calculated that if the company is now forced to add mall businesses are the backbone of our economy. three more sick days to the six it We hear this all the time—in political stump speeches already offers, it will cost an addi- tional $40,000 to $50,000 per year. from newspaper editorials—but do we truly, honestly That is a huge cost for a small busi- believe it? ness and will have to be offset New York City is home to at least 188,000 compa- somewhere, either in the creation nies that can be considered “small businesses,”and we know that of fewer jobs or potential cutbacks S in other benefits. So no matter how they employ a huge percentage of our residents and anchor well-intentioned the paid sick neighborhoods across the five boroughs. But if we sincerely be- leave proposal may be, in the end it lieve in their importance, then why are we about to risk the is likely to end up hurting many of health of our city’s small businesses and threaten to dangerous- the same workers it seeks to help. The bill is a one-size-fits-all pol- ly bend that backbone? We ask that question on behalf of the icy that will ultimately restrict the 5 Boro Chamber Alliance. business community’s flexibility in New York is already one of the most challenging places to do responding to an uncertain market. Thirty-eight council members business, especially for a small business. Recent studies rank have signed on to the bill as co- New York state almost dead last—49th place—for business sponsors, enough for passage and a veto override with a few votes to friendliness. Now, the New York and Washington spare. Our borough chambers are City Council is considering a bill to about small business owners who working together with other busi- mandate businesses regardless of have been deterred from expand- ness organizations and business their size or nature to provide paid ing, and some who have called it owners in the city to reach out to sick leave to their employees. Even quits altogether, due to the con- council members and let them know part-time and temporary workers straints of this and other regula- the dire consequences of this bill. would be eligible. tions. We hope that the small business The council has taken the lead Think about the impact our community’s clout will be felt be- from Milwaukee and Washington, economy has had on our business fore the vote is taken and not after- D.C., where similar bills were community at large. While paying ward, when we are left with even passed after a voter initiative to the highest taxes in the country— more empty storefronts,an ever-in- provide paid sick leave proved suc- commercial rent, real estate, creasing unemployment rate and an cessful in San Francisco in 2006. telecommunications and energy even more unhealthy backbone of We have already heard reports from taxes; increased income taxes on our city.

CARL HUM is chief executive of the Brooklyn Chamber of Commerce, and NANCY PLOEGER is president of the Manhattan Chamber. They represent the 5 Boro Chamber Alliance, which also includes the Bronx Chamber of Commerce, the Queens Chamber of Commerce and the Staten Island Chamber of Commerce.

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NEIGHBORHOOD JOURNAL Owner gives Bronx artists brush-off

uity firm that bought the building in withal to pay those prices.” and nonprofits. But that was Budding colony at 2007 for $32 million, shifted ten- Charles Bendit, co-chief execu- before the recession. Banknote Building ants to six-month leases and raised tive of Taconic, insists that he’d love “I’m sure they thought rents 10% to 30%. In response, to have the artists stick around. things would be much easier,” hit by rising rents; artists are starting to leave. “We’re not kicking anyone out,” he says John Robert, district schools as Plan B? “I think what they’re doing is says. “We’ve even offered rents as manager of Bronx Commu- NEW TENANTS: Banknote Building landlord Taconic very shortsighted,” says Bill Agua- low as $12 per square foot.” nity Board 2,where the build- Partners wants to bring in educational groups. south bronx artists do, president of the Bronx Council Taconic’s initial renovation plans ing is located. He praises the colony centered in and for the Arts, a nonprofit organiza- for the 100-year-old building re- renovations as creating a “very around the historic tion that helps artists find studio served a section for low-cost artists’ sleek and attractive” building, foot building is still home to the Banknote Building is space in the South Bronx.“[Tacon- space. The developer hoped in that though he has some concerns about Bronx Academy of Arts and Dance, wilting. ic] may have the best intentions, way to attract creative tenants, such artists being priced out. Sustainable South Bronx, a charter ATaconic Partners, the private eq- but artists don’t have the where- as advertising agencies,design firms Meanwhile,the 400,000-square- school, and about a dozen artists. But Mr. Aguado says more than half a dozen have left and a handful are weighing moves to nearby Mott Haven, where rents are cheaper. Taconic has moved to Plan B. “This building can bring more young people and young energy if we bring educational institutions in,” Mr. He asked if I liked the sound Bendit says.He’s hoping to lure char- ter schools, a City University of New York campus or vocational schools. Plan B also has its fans. “We of reducing my overhead. would welcome the idea of the building becoming a mini-campus with different schools,” says Mr. Robert.“That would be wonderful.” I could listen to my banker talk all day. —hilary potkewitz Project may put old rink on ice after 50 years of service,Prospect Park’s Kate Wollman Rink may be temporarily closed following this With HSBC, your season. Skating will begin on sched- relationship manager will ule on Thanksgiving weekend, but once it ends in March,the bulldozers take the time to learn will move in. what makes your business With more than three-quarters unique, and how we can of the needed $60 million in hand, tailor solutions to give the Prospect Park Alliance is confi- you an edge. Ask about dent that it can begin building two ExtraVantage® Checking new rinks by next summer as part of for Business, with a world a broader effort to renovate 26 acres of benefits designed to of Brooklyn’s largest park. Michael D. “We are very hopeful,” says Tup- Freight Forwarder help your business thrive. per Thomas,president of the alliance. New York, NY “We are trying to raise more money In 86 countries and from state and federal officials and territories,1 we’ve built people who have a real commitment a network of global to the park and to Brooklyn.” knowledge and local Plans to replace the rink with two insights. new ones in the new Lakeside Cen- ter were announced two years ago. “It would seem possible to build a Knowledge is the new new facility in stages, so that a rink currency. See what remains available,”says Howard Ep- it can mean for your stein, head of The Brooklyn Blades, business. To learn more, a group that runs hockey clinics for call 866 909-1243 or find children and adults. your nearest branch at Ms. Thomas notes that the al- us.hsbc.com/unique. liance considered keeping the old rink open but decided against it be- cause access would be blocked by construction of the new rinks. “I am afraid we won’t get it built

® quickly,” says Alvin Berk, chairman Open an ExtraVantage Checking for Business account of Community Board 14 and a fre- by November 13, 2009, and enjoy no maintenance quent user of the rink. fee for 12 months.2 Ms. Thomas expects the rink to be shut down for just one season,but she insists the new facility will be worth the sacrifice. “It will be a ma- jor center in the park with year- 1 The HSBC Group operates through a network of affiliates and subsidiaries around the world. round activities,” she says. “In the 2 Offer applies only to new-to-bank customers who establish an ExtraVantage® Checking for Business or BusinessSmartSM for Professionals account by summer it will also be for roller skat- November 13, 2009, and is subject to approval. Other restrictions may apply. ing, and in the fall it will be for fun In the United States, deposit products offered by HSBC Bank USA, N.A. Member FDIC, Equal Credit Opportunity Lender. activities for the community.” ©2009 HSBC Bank USA, N.A. —amanda fung

12 | Crain’s New York Business | October 12, 2009 20091012-NEWS--0013-NAT-CCI-CN_-- 10/8/2009 8:53 PM Page 1

Recession is not all bad news for NYC eateries

One change: Peter Luger Steak mation of a favorite son, Danny More prix fixe House shot up this year to third- Meyer, whose group of restaurants MICHELIN WALK OF FAME menus and deals; most-popular eatery from its No. 8 gets rave reviews in the local media. ranking last year. Mr. Meyer’s Eleven Madison Park The Michelin easier to get into the The Michelin guide reshuffled a received four stars in August from New York City few celebrated dining establish- ’ outgoing food Restaurants 2010 hottest restaurants guide, released last ments, including Daniel Boulud’s critic, Frank Bruni—the paper’s week, changed the Daniel, which gained one star to highest rating. But the restaurant is stature of a number BY LISA FICKENSCHER join the ranks of Jean Georges, Le awarded just one star in the Miche- of establishments. Bernardin, Masa and Per Se in the lin guide. Here are highlights of for the fifth year in a row, the three-star category. “Danny Meyer is the hometown some of the ranking changes from last    city’s dueling restaurant guides were restaurant guy, so we want him to year’s guide. Three DANIEL CORTON and DEL POSTO released within days of each other, Danny Meyer slighted by Michelin have at least one three-star restau- stars means top gained a ALTO added and ADOUR with each revealing something dif- new yorkers will likely take um- rant,” says restaurant consultant honors. star a star lost a star ferent about the effects of the reces- brage with the French guide’s esti- Clark Wolf.  sion on the dining scene in the Big Apple. According to the Zagat Survey’s New York City Restaurants 2010, published last week, New Yorkers are eating out less and spending less on restaurant meals, while the 2010 Michelin guide shows that there are more good-quality eateries with af- fordable prices this year. The French publisher lists 85 restaurants, or 31 more than last year, in its selection of Bib Gour- mand eateries:those that charge $40 or less for two dishes and a glass of wine or dessert. “The recession seriously affected the New York restaurant industry,” says Tim Zagat, chief executive of Zagat Survey. “But the business is resilient and fundamentally sound.” For example, the Zagat Survey shows that 157 notable restaurants opened this year, while 102 closed. Some of the most highly acclaimed dining shrines, such as Stephen Hanson’s Fiamma and 92-year-old Café des Artistes, were among the closures. Despite the shift to lower-cost prix fixe menus and other recession- inspired deals, the average cost of a meal, including one drink, rose 2.5%,to $41.81.That’s still less than the $93.33 that people pay in Tokyo, the most expensive dining city in the world, according to Zagat. One explanation for New York’s price increase is larger bar tabs. “I’m told by our people who go to restaurants every night that the price of drinks has been going up, and that’s where the overall uptick in price might be coming from,” says Mr. Zagat. Few big upsets his guide also shows that New Yorkers are eating out just three times a week, compared with 3.3 times a week last year. More than 40% of New Yorkers are dining at less expensive places, while 21% are skipping appetizers and/or dessert, and 19% are curbing their alcohol consumption. One silver lining to such re- straint: It’s easier to score a coveted reservation at a hot restaurant these days. What’s more, 38% of diners feel more appreciated and rewarded when they go out to eat. As for the restaurant rankings, there were few big upsets in either guide. The perennial leaders in the Zagat Survey—Gramercy Tavern and Union Square Café—remain the most popular restaurants. Le Bernardin, Daniel, Jean Georges and Per Se were rated tops for food.

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Grading Mike on the e

Continued from Page 1 “All the naysayers were out there poverty than in 2000. And the may- saying:‘That’s it for New York.Every- or’s management of New York’s many one is going to move out,’ ” recalls economic challenges is coming under Deputy Mayor Robert Lieber.“Actu- attack by his main opponent, Comp- ally, quite the opposite happened.” troller William Thompson,who con- The recession’s end in 2003 ush- tends “the business mayor” is not liv- ered in one of New York’s greatest ing up to his own billing. booms.The city gained 252,000 pri- While the mayor can’t be blamed vate-sector jobs from 2003 until for an epic recession that has battered 2008. Record profits and bonuses on the five boroughs, an examination of Wall Street and huge real estate his budget and employment record, transfer taxes led to a $37.5 billion,or as well as interviews with a wide range 70%, increase in cumulative tax rev- of experts on the city’s economy, enue between fiscal years 2000 and yields a mixed report card. 2007, according to the Manhattan On the plus side, he has bolstered Institute, a conservative think tank. the economy by bringing down crime Mr. Bloomberg squirreled away rates to their lowest levels in 40 years, some of the unexpected surplus for a increased confidence in public schools, rainy day—novel stuff for New York added affordable housing units and re- City government.But other calls dur- zoned 22% of the city to promote de- ing the boom still draw criticism from velopment in all five boroughs. some followers of the city economy. “The first priority for the economy “He put $2.5 billion into a retiree is public safety,and Mayor Bloomberg health fund and did pay-as-you-go has been relentless on that front,” says capital spending; I’d give him pretty Kenneth Adams, president of the high marks for that,” says Charles Business Council of New York State. Brecher, research chief at the fiscally The mayor also has taken steps to conservative Citizens Budget Com- help diversify the economy and intro- mission. “But there wasn’t as much duced an array of programs to soften spending discipline as one would like.” the impact of the recession. The city’s budget has ballooned to $59.6 billion for the current fiscal Wall Street dependency year,from $44.6 billion in the year the despite his efforts, the city is as mayor took office. That outpaces in- dependent on Wall Street as ever.The flation by roughly 40%. 130,200 private-sector jobs gained Most of the added kick comes during his two terms fall short of the from a nearly $6 billion increase in ed- eight-year median of 150,000 seen ucation spending and wage hikes for since 1975,according to the state De- municipal workers, according to the partment of Labor. And many of the Independent Budget Office. The jobs created in the past eight years have city’s pension obligations have hit a been at the bottom of the pay scale. projected $6.6 billion at last count,up Meanwhile, the city’s budget has from $1.6 billion in 2003, the IBO grown faster than the rate of infla- says, though only a small portion of tion—and its debt load has soared. the increase can be attributed to the Mr. Bloomberg took office just raises.A focus on capital projects such four months after the Twin Towers as school construction has pushed the crumbled on Sept. 11, 2001, and had city’s annual debt service costs to to deal with a recession exacerbated nearly $5 billion,up from $3.5 billion by the terror strike. He quickly raised in fiscal year 2002,according to Man- property taxes and made cuts to close hattan Institute figures. a $1.1 billion budget gap. Despite “The biggest story on the budget pushing the highly unpopular prop- is the missed opportunity,” says erty tax hike, he played a central role Nicole Gelinas, a senior fellow at the in convincing business leaders and Manhattan Institute. “We had the residents not to abandon the city. biggest revenue boom the city has Singular sensations at m

Continued from Page 3 manent collection exhibit costs its galleries and will present two or around $100,000. three fewer shows this year.The mu- Of course, it’s much tougher to seum canceled a major exhibition it generate lines around the block with had planned for this fall because of permanent collection shows. In an the significant costs to mount it, and effort to create as much excitement is instead presenting three shows cre- as possible,the Brooklyn Museum is ated from its permanent holdings. reaching deep into its storage rooms “It’s like shopping in your own to come up with rarely seen works. closet,” says Arnold Lehman, direc- tor of the Brooklyn Museum. “As Decades in cold storage the costs increase for these exhibi- the lineup starts on Oct.23,with tions, and corporate sponsorship the opening of “James Tissot: The has been decreasing over the past Life of Christ,” which includes 124 few years, you can do just so much.” watercolors of detailed scenes from With hefty insurance and ship- the New Testament.It marks the first ping fees, a single artwork on loan time in more than 20 years that any can cost $20,000 to $50,000 or of the Tissot paintings, which the more. A true blockbuster typically museum acquired in 1900,have been features 200 or so works,putting the on view at the Brooklyn Museum. cost of such a show in the multimil- Another show, called “Body Parts,” lion-dollar range. A nice-size per- features 35 objects from the muse-

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economist at the liberal Fiscal Policy the city getting zoning boosts and de- A BLOOMBERG Institute. “We have too many jobs velopment subsidies. But Mr. Lieber REPORT CARD e economy that don’t pay workers enough.” says mandating living wages would Perhaps if there had been a greater squash development and result in no focus on entrepreneurialism through- jobs, not good jobs: “They want jobs ever seen, and we allowed the unex- out the mayor’s tenure, as opposed to that [the] businesses that create those A + B pected surpluses to delay looking at an emphasis on stadiums and other jobs wouldn’t be able to afford.” C pension and health-benefits reform.” big development projects, there Mr. Bloomberg remains hugely C Mr. Lieber says the mayor has not might be more diversity by now. “As popular in the business community, been able to pass pension reform be- much as Bloomberg understands the with the exception perhaps of some cause it needs to go through Albany, need to diversify, he doesn’t really small business owners who gripe where labor’s clout makes it an un- grasp the real importance of groom- about increased fees, fines and red popular move.After years of avoiding ing middle-income industries,” says tape.There is one thing,however,that the fight, Mr. Bloomberg finally Jonathan Bowles,executive director of almost everyone agrees on: No may- started pressing for a cheaper pension the Center for an Urban Future, who or, however capable, can truly dictate QUALITY OF LIFE JOBS FISCAL POLICY ECONOMIC MIX A post-Sept. 11 The past eight years’ The budget has An A for effort (focus tier for new hires this year. is generally supportive of the mayor. the growth of a city’s economy. talent flight never gains are below the ballooned under his on all five boroughs The mayor has been consistently Many of Mr. Bloomberg’s critics “It’s hard for elected officials to materialized; the eight-year median watch, puffed up by and entrepreneurs vocal about the need to diversify the contend he’s missed an opportunity decide the fate of a local economy,” city’s safer and since 1975 and have raises and benefits wins praise), but it’s city’s economy. For example, he has to tie demands for higher wage stan- says the Mr.Brecher.“It’s much eas- confidence in its been concentrated in for municipal tough to wean this  schools is up. low-wage sectors. workers. city off of Wall Street. worked to build a bioscience sector, dards to the slew of projects around ier to mess it up than build it up.” getty images focusing on the $700 million East River Science Park that recently land- ed its first tenant, ImClone Systems Inc. But ImClone is relocating from elsewhere in the city, and the center, due to open next year, has been slow to attract other tenants. He has also worked to bolster the film industry via a tax credit and new studios that have pushed up location- shooting days 83% since 2002. ® Criticizing the wage mix Buy any BlackBerry, get one free. mr.bloomberg gets high marks for recent attempts to revive the econo- And get a Small Business Specialist, too. my via an array of programs to sup- port entrepreneurs, startups and in- BlackBerry runs better on America’s Largest and Most Reliable 3G Network. dustries where the city might have a competitive advantage,like the fledg- Now you can get more done on the go for less. Come in today, buy any do-it-all BlackBerry smartphone and get another one free. ling green sector. Yet it’s doubtful It’s that simple. And to make things even easier, our Small Business Specialist will help get you up and running in no time. these initiatives are strong enough to crack the city’s dependence on Wall Street, which the IBO says generates OUR LOWEST PRICES EVER! 21.6% of local tax revenue but ac- Free phone must be of equal or lesser value. All phones require new 2-yr. activation counts for only 4.3% of employment. on a voice plan with email feature, or email plan. The wage mix of the city’s new jobs is where the mayor’s economic plans come under real fire. Nearly 62,000 manufacturing jobs have been shed during the mayor’s two terms,in line with a national trend. They’ve been replaced with generally low- paying retail and hospitality jobs. Big gains also were made in the health and education sectors, but they are also generally low-paying and often rely heavily on government funding. BlackBerry Pearl™ Flip Flip design with “It’s hard to look at the challenges BlackBerry Curve™ SureType® keyboard of the New York City economy and Push-enabled email, not come away saying there’s a wage $ 99 calendar and contacts BlackBerry Storm™ problem,” says James Parrott, chief 19 World’s first touch screen NEW! BlackBerry Tour™ $ 99 global BlackBerry Fastest BlackBerry processor $119.99 2-yr. price – $100 49 mail-in rebate debit card. with global capabilities $149.99 2-yr. price – $100 $4999 t museums mail-in rebate debit card. $14999 $149.99 2-yr. price – $100 mail-in rebate debit card. $249.99 2-yr. price – $100 mail-in rebate debit card. um’s collection of Egyptian art that have never been displayed before. 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October 12, 2009 | Crain’s New York Business | 15 20091012-NEWS--0016-NAT-CCI-CN_-- 10/9/2009 2:50 PM Page 1

Under Mr.Zwingli,a former head have sued disapproving analysts be- of equity research at Standard & fore, with little to show for their ef- Audacious analyst riles targets Poor’s, the firm’s staffers dig through forts. Online retailer Overstock Inc. financial data and also consider more sued Gradient Analytics in 2005, al- Continued from Page 1 retraction and an apology. If success- tegrity’s list to see if they’ll join the subjective factors,including account- leging that its analysts conspired with basis in fact or reason.” Macy’s Inc. ful, Hertz’s action could set a legal fight. Audit Integrity shot back last ing practices, executive compensa- hedge fund managers who bet against hissed,“We very much disagree with precedent that would muzzle Wall week by asking the Securities and Ex- tion and turnover, and insider stock Overstock shares. Biovail, a drug- the conclusion of the report.” Street analysts who are inclined to change Commission to investigate sales. Audit Integrity proudly notes maker, made similar allegations in a But Audit Integrity really hit the publish disagreeable opinions. Hertz, ominously noting that Enron that it was ahead of the curve in iden- 2006 suit against a former Bank of nation’s largest car renter where it Mr. Zwingli’s 15-employee firm and Lehman Brothers went to great tifying potential problems at Coun- America analyst and some hedge Hertz. is ready for war with Hertz, which lengths to silence or discredit critics in trywide Financial and Bank of Amer- funds. Last year, BankAtlantic Ban- Park Ridge, N.J.-based Hertz generated $8.5 billion in revenue last the months before their demise. ica, among others. corp of Florida sued prominent Global Holdings Inc., struggling to year.“We have every right to publish “Their track record is very good,” banking analyst Dick Bove and bro- regain its footing after a $1.2 billion our opinion, and Hertz knows that,” An early call on Countrywide says Sandy Bragg, CEO of consult- kerage Ladenburg Thalmann, his net loss last year, sued Audit Integri- he says. “The only reason they’ve although unknown to the public, ing firm Integrity Research Associ- former employer, after Mr. Bove in- ty and its chief executive, Jack filed this suit is to inflict some pain seven-year-old Audit Integrity has ates and a former colleague of Mr. cluded BankAtlantic on a list of insti- Zwingli, alleging defamation and on us.They won’t succeed.” won a following among a few dozen Zwingli’s at S&P. “They have dem- tutions that he said could fail. trade libel.The suit, filed in late Sep- Both sides are trying to enlist sup- institutional investors, auditing onstrated time and again that their The suits don’t seem to have ac- tember in a New Jersey state court, porters. Hertz has been in contact firms and regulators,who pay a hefty insights are worth paying for.” complished much for the plaintiffs. demands unspecified damages plus a with other companies on Audit In- $17,500 for its reports. At least three other companies Overstock settled and got a state- ment of non-apology from Gradi- ent. Biovail settled with the BofA analyst, but the suit prompted an SEC investigation that ended with Biovail paying $10 million to settle charges of committing accounting fraud and misleading analysts and investors.The status of the BankAt- lantic suit isn’t clear;none of the par- ties will comment. Legal experts say it will be difficult for Hertz to prevail in court. So long as analysts can demonstrate that they used facts to arrive at their opinions, their conclusions are protected by the First Amendment, says Thomas Burke, a media lawyer at Davis Wright Tremaine. It so happens that these controversial opinions are the ones that investors want most. “There’s no more important work for financial analysts now than trying to determine which companies aren’t stable,” Mr. Burke says. Hertz calls it “reckless disregard” hertz contends Audit Integrity’s work went beyond fair opinion and included false accusations made with “a reckless disregard for the truth.” “[Mr.Zwingli] questioned the in- tegrity of our financial reporting,” a Hertz spokesman says. “The charges are baseless, and we felt strong coun- termeasures were warranted.” There’s no question that Hertz has struggled lately. A leveraged buyout earlier this decade saddled the com- pany with a heavy debt load that pro- vided little margin for error when the recession hit. Hertz’s stock price sank from about $10 a share in September 2008 to as low as $1.55 last November. It languished through the spring, amid concerns about whether Hertz could refinance a $4 billion debt coming due at a time when the credit markets weren’t functioning. But the compa- ny was able to refinance $2.1 billion in debt last month,after having raised more than $1 billion in new equity and convertible debt,easing the pres- sure. Its stock has rebounded, return- ing to about $10 a share last week. “Their ability to pay down some debt and get 2010 debt pushed out has removed the bulk of the bank- ruptcy risk,” says Shelly Lombard, an analyst at independent research firm Gimme Credit. While Mr.Zwingli says he’s angry about what he sees as Hertz’s efforts to shut his firm up, he insists that he feels no ill will toward the company. Audit Integrity employees, however, won’t be driving its cars anytime soon. “We can’t afford Hertz rentals,” Mr. Zwingli says. “We’re more of a Dollar or Budget sort of place.” 

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SMALL BUSINESS INSIDE The fastest-growing companies in the NY area PAGE 20 NYC’s new Small Business Q&A Administration chief tells where firms can find funding and advice PAGE 21 Health Reform: The Cold, Hard Facts All sides are spinning all kinds of misinformation. Here are seven critical facts to help you sort through the issues raised in the debate

enough of the tent poles have emerged in recent weeks to BY ELIZABETH MACBRIDE make it clear that health care reform will create winners HERE WE ARE, six months into the monster debate over and losers among small businesses. What the reformers how to cover the uninsured in America. Much remains aren’t telling you is they are leaving the biggest questions— undecided as legislators in Washington, D.C., how to curb costs and how to improve care—for another hammer out various proposals in the House and the day. Here, Crain’s offers a primer for business owners on Senate (and hammer each other in the process), but See HEALTH REFORM on Page 18 barak obama:barak bloomberg news getty images

October 12, 2009 | Crain’s New York Business | 17 20091012-NEWS--0018,0019-NAT-CCI-CN_-- 10/8/2009 4:50 PM Page 1

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lars suggest. Private insurers follow SICKENING STUFF Medicare’s lead on what procedures Health to cover and how doctors and hospi- PREMIUMS HAVE SOARED ...... ONE REASON SMALL BUSINESSES ACCOUNT FOR tals should be paid. Medicare poli- MANY OF NY'S UNINSURED WORKERS. cies help decide everything from the reform highest-paid specialties to how many days or hours you should spend in the hospital after surgery. Continued from Page 17 the issues underlying the nation’s COLD, HARD FACT health care debate and its impact on The private insurance the New York market. market has problems, but #4 the government-run COLD, HARD FACT programs have even bigger ones. Small businesses are one of Percentages do not add up to 100 due to rounding. Data are for 2006-07, the latest available for New York state. Workers include people ages the biggest holes in the Nationwide estimates for family premiums. Source: Kaiser Foundation 19 to 64 who work full- or part-time. Source: United Hospital Fund congress seems set to change the #1 insurance net. private insurance market and cover GOVERNMENT ALREADY DOMINATES ... AND TAXES EAT UP THE BULK OF HOUSEHOLD HEALTH CARE COSTS. millions of uninsured, probably at a about 9.7 million of the people in THE U.S. HEALTH CARE ECONOMY ... cost of $100 billion a year for the next the U.S.who work for companies with 10 years.To put that into perspective, fewer than 25 employees are unin- $21,000 $12,000 $9,000 the federal government now spends sured.In New York,there are 630,000 Average health costs per Share paid through taxes Share paid through $720 billion a year on Medicare and uninsured workers at such companies, U.S. household, 2008 and government deficits insurance premiums and Medicaid,its programs for the elder- out-of-pocket expenses says the United Hospital Fund. Source: Eugene Steuerle ly and the poor. Unless the two pro- Many small businesses want to grams’ growth rates slow, Medicare offer insurance,but rising costs mean and Medicaid spending will top $1.4 they can’t afford to. From 1999 to SOME REASONS HEALTH CARE COSTS MORE HERE THAN IN OTHER STATES trillion a year in 2019. 2009,the average cost for family cov- Hospital beds per 1,000 Hospital inpatient days per Paid-out medical Americans pay for those pro- erage more than doubled in the U.S., population, 2007 1,000 population, 2007 malpractice cases, 2008 grams but don’t realize it.Health care to an estimated $3,515 this year for expert Eugene Steuerle, a former the worker’s share and $9,860 for the NY 3.2 NY 951 NY 1,373 deputy assistant Treasury secretary,

employer’s share. In New York, in- Sources: Centers for Medicare and Medicaid Services, US 2.7 US 645 US 11,025 estimates that the average household surance brokers say, small businesses budget of the U.S. government Source: Kaiser Foundation spends $21,000 a year on health care, have seen increases of 12% to 15% a $12,000 of that in taxes and deficits year for the past several years, while and the rest on insurance premiums, surveys show that all employees at credit toward premium costs. ton tackle the coverage issue head-on The proposals would force business- including what their employers companies big and small have seen All of the plans in Congress re- but leave the question of affordabili- es above a certain size (with possible spend and out-of-pocket expenses. increases ranging from 7% to 10%. quire individuals to buy coverage or ty largely for another day. In fact, the limitations for hardship) to pick up The tax rate to support Medicare How to plug the small business pay a penalty. That mandate will measures that are meant to expand 60% to 75% of the cost of employee alone is 7%,Mr.Steuerle says,and it’s hole has become a key point of debate probably increase pressure on even coverage may increase costs in the and family benefits. If they don’t, expected to hit 14% by 2030.Reform in Washington.A clear line is emerg- the smallest businesses to buy cover- short term for small businesses that they will pay a fee or penalty. proposals, with a few exceptions, ing, whereby companies above a cer- age: If your employees must pay for already offer health insurance. Congress also may set a minimum don’t tackle the cost question. “To- tain size—25 or 50 employees, de- their own coverage, they’ll be even “Affordability has always been the benefit package that is much richer day’s Medicare debate,” he predicts, pending on the bill—will be required more likely to seek jobs that have it. poor sister to expanding coverage,” than what most small businesses of- “is a minor prelude to the real thing.” to provide coverage or pay penalties. says Amanda Austin, director of fed- fer now.That upgrade may endanger The companies that fall under the COLD, HARD FACT eral public policy for the National small business programs that have cut COLD, HARD FACT size limit will be treated to more car- Lowering costs is taking a Federation of Independent Business. costs by offering plans with limited Spending more money rots than sticks. The plans create tax backseat to expanding “We’ve talked until we’re blue in the benefits.Two local programs that fall doesn’t mean that you get

credits to help companies pay for #2 health care coverage. face,asking legislators to realize what into this category are Healthy New #5 better health care. buck ennis coverage, some of them quite gener- small businesses are actually buying.” York and Brooklyn HealthWorks. ous. One House bill provides small the u.s. has two related health The biggest jolt for small busi- Health reformers haven’t forgot- new york is second only to the Dis- businesses with fewer than 25 em- insurance crises: fast-rising costs and nesses may be a new requirement that ten about the affordability crisis. It’s trict of Columbia in spending per ployees making an average of less the growing number of uninsured they cover a large proportion of em- harder to tackle and its fixes are much capita on health care. It also spends than $40,000 a year with a 50% tax people.The reform bills in Washing- ployee and family health benefits. more uncertain. Proposals for a pub- more on Medicaid than other lic plan have run into big opposition states—$42.6 billion in 2010, the from industry groups that say it will single largest line item in the state WHO COULD BE HELPED simply underpay doctors and hospi- budget. Yet New York delivers only tals, shifting costs onto the private mediocre results when it comes to SAUDIA DAVIS STARTED GREENHOUSE ECO-CLEANING in buy it for her full-time staff. And because GreenHouse is sector, as Medicare has. Nonprofit what policymakers call “health out- 2006, in part as a tribute to her grandmother, a cleaner such a small business, operating in a low-paid market insurers, meanwhile, already operate comes,”such as cardiovascular deaths who died of cancer—possibly, Ms. Davis believes, because segment, it may well be eligible for tax credits, if those in most markets without appreciably and preventable hospitalizations. of all the harsh chemicals she worked with. breaks end up in the final version of any health care lowering premium prices overall. The U.S. spends more than twice “I remember paying someone for the first time, and reform out of Washington, D.C. “It seems like such a small A well-designed insurance ex- as much per capita on health care she needed the money because her mom was ill,” Ms. cost to improve the system,” Ms. Davis says. change, in which individuals and than the average among 30 other de- Davis says. “It was very moving for me.” To come up with the additional money, she’d pull small businesses could buy specially veloped countries. Yet it gets no real Dumbo-based GreenHouse now has five full-time together her employees—“they are all such smart women,” designed lower-cost plans,could save boost in life expectancy from the ex- employees, including Ms. Davis, and seven more who she says—to strategize. Though it’s hard to increase prices money, say experts, yet exchanges tra money, say statisticians. work on an as-needed basis. The 31-year-old says she in her business, she’d ramp up her marketing don’t always work: A Blue Cross and By bringing tens of millions of the loves the idea of offering a good job to efforts to bring in more clients and generate Blue Shield Association study found uninsured into the health care sys- women who are struggling to make a life the additional dollars needed for insurance. that costs in statewide exchanges tem,this year’s reform is likely to help in the United States, with both a living Some economists and politicians argue were actually higher in the 1990s improve health care for them.Yet it’s wage—she pays $12 to $15 an hour— that requiring businesses with more than 25 than prices outside the exchanges. unlikely to bring down costs or raise and health insurance. But so far, the employees to buy health insurance would the quality of overall care.Some have latter hasn’t been possible. create a disincentive for growth. To Ms. COLD, HARD FACT argued that covering the uninsured With annual revenue of less Davis, that idea sounds somewhat The government has already will drive down costs because expen- than $250,000, Ms. Davis has eggheaded. When she reaches that taken over the country’s sive diseases will be prevented.That’s #3 health care system. at best a dubious proposition: Some only recently expanded to where 25-worker threshold, Ms. Davis economists believe prevention may she can buy health insurance for says, she will want to grow, some of the rhetoric has focused actually cost more because it helps herself—a highly restrictive, $250-a- regardless of the many on stopping a government “takeover” people live longer. month plan where pre-existing regulations in her path. of health care.Too late:federal mon- “That doesn’t mean we shouldn’t conditions aren’t covered. “Entrepreneurs are insane to ey accounts for 46% of the $2.6 tril- invest in prevention,” says Robert If she could use tax credits to SAUDIA DAVIS be doing this in the first lion spent on health care and related Bixby, executive director of the bring down the cost of employee place,” she says. “People who services in the U.S. this year, reports Concord Coalition, which advo- health insurance to around $150 a think that, they just don’t know the Congressional Budget Office. cates eliminating the federal budget month, she believes she could afford to the mind-set of an entrepreneur.” The government’s influence on deficit. “But it doesn’t mean you’re

buck ennis health care is even larger than dol- going to save money.”

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WHO COULD BE HURT MICHAEL FEDER IS A PARTNER IN A PRODUCTION COMPANY, not an actuary, but he knows an untenable situation when he sees one. The health care tab rises each year for Hornet Animation Inc., which has 45 employees in New York and Los Angeles. Between 2007 and 2009, costs spiked to $480 a month per New York employee from $376, even after Hornet switched to a plan with higher co-payments and deductibles. Many of the health care proposals in Washington could actually end up costing Hornet more, at least in the short term. Although the company already pays 100% of the premiums for its employees, it does not offer any benefits for families, and several of the reform plans call for employers to contribute more than half of the cost of a family plan. In highly regulated New York, family plans range from $1,200 to $1,500 a month. Not only might Hornet be required to pay for family benefits, but the insurance plan it offers now might not meet new minimum standards. Some reform proposals use the federal employee health plan as the benchmark—a standard that’s much more generous than what many small businesses have now. Mr. Feder, 38, has been wondering whether the reform plans might allow for a break for his company, because most of its workers are young and healthy. The future is cloudy on this point. The reforms are likely to limit the degree to which insurers can take age and health into account, but New York is already so strict on this matter that the federal reform might actually allow insurers more freedom here. Mr. Feder also has wondered whether Hornet might be eligible for tax credits, but most of the proposals limit that aid to smaller companies with lower-paid employees. Still, he says, Hornet will find a way to cope. Mr. Feder listened to President Barack Obama’s speech before Congress in MICHAEL September and agrees that something has FEDER to be done. If costs rose significantly, he says, the company would absorb as much as it could—and then look to lower starting salaries to help make up the long-term difference. “If the government says that’s what our responsibility is, fine,” he says. “But we’re a successful, growing company. If that weren’t the case, I would have a harder time saying that.” buck ennis

COLD, HARD FACT panels.” Yet one of the best places to The people telling you they save money—and heartache—is know what health reform probably at the end of life. #6 will cost actually don’t. An estimated 14% of Medicare expenses are paid for care in the last a recent study by the Common- two months of life, according to one wealth Foundation showed that even study. Other research shows that the respected CBO has been wrong many seriously ill people and their more often than it’s been right when families want fewer medical inter- predicting how a change in legisla- ventions than they get. tion will affect health care costs. Families and caregivers asked to Jon Gabel of the National Opin- rate the quality of a loved one’s death, ion Research Center at the Univer- based on factors like how well the sity of Chicago found that the costs family’s wishes were followed, said are particularly hard to predict when the costliest deaths had the least qual- there are simultaneous changes that ity,according to a study in Archives of might create “synergies.”Simultane- Internal Medicine. Another study, of ous changes that may lead to syner- patients with advanced cancer,found gies: That’s just about everyone’s that costs were nearly 40% lower in definition of health reform. But the cases where patients talked about the American health system is like a wa- end of life with their doctors. ter balloon: Push it in one place and New Yorker Judy Freedman con- it bulges out in another—and no one sulted a palliative care specialist dur- really knows when it will pop. ing the last two years of her life,when her lung cancer spread to her brain.A Congratulations on being one of the fastest growing companies around. When many COLD, HARD FACT doctor at Mount Sinai Medical Cen- The majority of health care ter helped her decide to turn down a companies today are “just hanging in there,” your hard work and vision have paid off. dollars spent, 70%, covers last-ditch try at chemotherapy. She And that’s not just some cliché. We know. We’re one of you. #7 the sickest 10% of people, died at home, having spent only one often when they’re close to death. night in the hospital in the six and a half years after her diagnosis. death is the big taboo in medi- “You can live well and live long cine—that was clear when a provision even in the face of a devastating di- Steven Mayer, CPA to pay doctors to counsel patients on agnosis,” says Ms. Freedman’s hus- 6 East 43rd Street end-of-life care was shouted down by band, George Schwartz, who adds opponents who said the conversa- that the nation has not yet had a real New York, NY 10017 tions would somehow lead to “death discussion of palliative care.  www.amper.com 212.682.1600 “Seeing Beyond the Numbers...”sm [email protected] 20091012-NEWS--0020-NAT-CCI-CN_-- 10/8/2009 7:52 PM Page 1

REPORT New York Area’s Fastest-Growing Companies Based on the sum of firms’ rankings in revenue growth rate, net income growth rate and share price appreciation

Continued on Page 22

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amazing.Those two elements have Q: Your most recent businesses in that because I was helping really helped banks open up. We’re job was at MTV as a Europe.The one businesses grow, which is really incentivizing the banks and vice president in thing I figured I’d what I hope to do with the SBA, essentially asking them, “How can marketing. Why the like to learn more just on a much larger scale. Instead you turn away loans?” switch from MTV? about was marketing of helping one business, I can help Q&A A: The rest of my and sales, which is thousands. Q: Are there any plans to extend the background why I took the job stimulus initiatives? probably makes with MTV. Q: Out of the 15 countries you’ve Putting A: They are expected to end more sense. I’m a ADVICE: Pravina lived and worked in, which did you soon, but we’re hoping that with former mergers- Raghavan says Q: If you could start love the most? their success so far, those and-acquisitions businesses should your own small A: The most interesting place programs will continue. Right director for AT&T use more of the business, what I’ve ever worked has been Russia. the SBA to SBA’s resources. now, we’re in a holding pattern in Europe, a former would it be? The economy is definitely different until we get new goals and technology buck ennis A: I think I would from anything else I’ve ever work for NY everybody reviews the success of investment banker, and for six years go back to what I was doing, which approached. But the place I’ve the program. It may continue, it I owned my own small business was giving advisory services to most loved to live is New Jersey; businesses may not; we’re not sure yet. that did advisory for small technology businesses. I enjoyed I’m a Jersey girl.  $11.3 billion loaned since March, but Plan B is needed

BY KIRA BINDRIM

s the U.S. Small Business Admin- istration’s newest district director for the New York City area, APravina Raghavan, 38, needs to hit the ground running. Big Apple entrepreneurs are struggling for capital and customers. As part of the federal stimulus package, the SBA eliminated its application fees in February and increased its guarantee on many loans to 90%. The agency says those initiatives have supported $11.3 billion in lending since March, but with both provisions slated to end this year, many small businesses are waiting for Plan B.

Q: What do you think is the biggest problem facing small businesses today? ME. MY FAMILY. A: People should be using a lot more of the resources that are available to them.There’s a lot of MY BUSINESS. MY EMPLOYEES. money out there.The question is whether you’re looking for the right funding for your business, and sometimes it takes some creativity I NEED FINANCIAL SOLUTIONS and ingenuity to figure that out. I also think communities need to get behind their businesses. We’re a big THAT PROTECT US ALL. organization; it’s tough for us to go to every small business in every community.

Q: Are there any challenges unique to New York City? A: We have diversity here that I think is a blessing but can At Guardian, we understand your small business needs. Your Guardian sometimes be an obstacle. It’s a representative works right alongside you to help you make the right challenge when you have to go and financial decisions. Our wide range of financial and employee benefit help communities that don’t solutions helps you attract and keep key talent, protect your income, normally reach out to government, and ensure a secure retirement for you and your employees. Our or don’t know what the SBA does fi nancial stability cultivated over 149 years, prudent risk management, because the government [in their native country] didn’t have that. and reputation for doing the right thing mean we’ll be there for you now and in the future. To get the right solutions for your business Q: What do you think the SBA is needs, visit us at www.GuardianLife.com. doing wrong? A: Getting out what we do. People need to know that the SBA L I F E I N S U R A N C E D I S A B I L I T Y I N C O M E I N S U R A N C E L O N G T E R M C A R E I N S U R A N C E I N V E S T M E N T S R E T I R E M E N T E M P L O Y E E B E N E F I T S is out there and ready to help, and is ©2009. Disability income products and Long Term Care Insurance underwritten and issued by Berkshire Life Insurance Company of America, Pittsfi eld, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America a resource, not just some (Guardian), New York, NY. Products not available in all states. Product provisions and features may vary from state to state. amorphous agency. Investments are offered through Park Avenue Securities LLC (PAS), 7 Hanover Square, New York, NY 10004. PAS is an indirect wholly owned subsidiary of The Guardian Life Insurance Company of America, New York, NY. PAS is a member FINRA, SIPC. Fi n a n c i a l i n f o r m a t i o n c o n c e r n i n g T he G u a r d i a n L i f e I n s u r a n c e C o m p a n y o f A m e r i c a a s o f 12 / 31 / 07 o n a s t a t u t o r y b a s i s : A d mssets i t t e d= A $28.3 Billion; Liabilities = $24.6 Billion (including $20.8 Billion of Reserves); and Surplus = $3.7 Billion. Q: What has the SBA done right? A: The ability to increase the loan guarantee to 90% and cut fees is

October 12, 2009 | Crain’s New York Business | 21 20091012-NEWS--0022-NAT-CCI-CN_-- 10/8/2009 7:52 PM Page 1

REPORT

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PUBLIC & LEGAL NOTICES BUSINESS SERVICES

Notice of Qualification of WHIST Notice of Qualification of Geospatial Notice of Qualification of Name of For. LP: FrontPoint Onshore EQUITY TRADING LLC. Authority Operating Company LLC. Authority FilmNewsBriefs LLC. Authority filed Asian Event Driven Fund, L.P. Appl. filed with Secy. of State of NY (SSNY) filed with Secy. of State of NY with Secy. of State of NY (SSNY) on for Auth. filed with Sec. of State of on 09/22/09. Office location: NY (SSNY) on 9/11/09. Office location: 08/24/09. Office location: NY County. NY: 9/2/09. Jurisd. and date of org.: County. LLC formed in Delaware (DE) NY County. LLC formed in Delaware LLC formed in Delaware (DE) on DE 8/4/09. NY State office loc.: NY on 04/18/08. Princ. office of LLC: 11 (DE) on 5/22/09. SSNY designated 08/18/09. Princ. office of LLC: 101 Cty. Sec. of State designated as Madison Ave., NY, NY 10010-3629. as agent of LLC upon whom process Warren St., #1430, NY, NY 10007. agent upon whom process against it SSNY designated as agent of LLC against it may be served. SSNY shall SSNY designated as agent of LLC may be served. Sec. of State shall upon whom process against it may mail process to: The LLC, 6161 South upon whom process against it may mail copy of process to: Two be served. SSNY shall mail process Syracuse Way, Ste. 100, Greenwood be served. SSNY shall mail process Greenwich Plaza, Greenwich, CT LOANS AVAILABLE to c/o Corporation Service Co., 80 Village, CO 80111, also the address to Jessica Kantor at the princ. office 06830. Addr. of LP in DE is: 615 S. State St., Albany, NY 12207-2543. of the principal office. Address to be of the LLC. DE addr. of LLC: 2711 DuPont Hwy., Dover, DE 19901. DE addr. of LLC: 2711 Centerville maintained in DE: 1209 Orange St., Centerville Rd., Ste. 400, Wilmington, Name/addr. of GP avail. from Sec. of 90% Financing for Rd., Wilmington, DE 19808. Arts. of Wilmington, DE 19801. Arts of Org. DE 19808. Arts. of Org. filed with DE State. Authorized office in DE where Small Businesses Org. filed with DE Secy. of State, 401 filed with DE Secy. Of State, 401 Secy. of State, Div. of Corps., John G. Cert. of LP is filed is: DE Sec. of Federal St., Dover, DE 19901. Federal St., Ste 4., Dover, DE 19901. Townsend Bldg., 401 Federal St., State, Townsend Bldg., Dover, DE Acquisition, Renovation or Refinance Purpose: Any lawful activity. Purpose: any lawful activities. Ste. 4, Dover, DE 19901. Purpose: 19901. Purpose: any lawful activity. Any lawful activity. 718-441-1515 Notice of Formation of 12 East 78th Notice of Qualification of STREET Notice of Formation of CREED BOU- Drexel Commercial Capital Street, LLC, Art. of Org. filed Sec’y of SNACKS LLC, Authority filed with the Notice of Qualification of Estekene TIQUE, LLC, a domestic LLC. Arts. of State (SSNY) 7/23/09. Office location: SSNY on 07/23/2009. Office location: Capital GP LLC, App. for Auth. filed Org. filed with the SSNY on NY County. SSNY designated as agent NY County. LLC formed in DE on Sec’y of State (SSNY) 8/18/09. Office 08/07/2009. Office location: NY of LLC upon whom process against it 04/19/2006. SSNY is designated as location: NY County. LLC org. in DE County. SSNY has been designated REAL ESTATE may be served. SSNY shall mail copy agent upon whom process against 8/14/09. SSNY designated as agent as agent upon whom process against of process to c/o Van De Weghe Fine the LLC may be served. SSNY shall of LLC upon whom process against it the LLC may be served. SSNY shall Art, 1018 Madison Ave., NY, NY mail a copy of process to: Larocca may be served. SSNY shall mail copy mail a copy of process to: The LLC, 10075. Purpose: any lawful activities. Hornik Rosen Greenberg & Blaha LLP of process to Attn: Peter Carlin, 810 Two West 45th St, Ste 1208, NY, NY OFFICE SPACE 40 Wall St., 32nd Fl., NY, NY 10005. Seventh Ave., 39th Fl., NY, NY 10036. Purpose: Any Lawful Purpose. Address required to be maintained in Notice of Registration of Goldstein 10019. DE office addr.: CSC, 2711 PARK AVE/54TH ST DE: CT Corp. Systems 1209 Orange Hill & West Architects, LLP. Certificate Centerville Rd., Wilmington, DE Notice of Formation of OBBI “Mini suite” within tasteful law offices. of Registration filed with Secy. of St, Wilmington DE 19801. Cert of 19808. Cert. of Form. on file: SSDE, Formation filed with DE Div of Corps, Acquisition, LLC. Articles of One private, windowed office; adjacent large State of NY (SSNY) on 07/10/09. Townsend Bldg., Dover, DE 19901. Organization filed with Secy. of State room with 2 sect’l workstations & filing cab- Office location: NY County. SSNY 401 Federal St Ste 4, Dover, DE Purpose: any lawful activities. 19901. Purpose: Any Lawful Purpose. of NY (SSNY) on 04/08/09. Office inets. Conf room/video conf/vm/phones/hi designated as agent of partnership location: NY County. SSNY designated speed internet avail. 18 month sublease. upon whom process against it may Notice of Qualification of SLG 620 as agent of LLC upon whom process Great location. $3500/month. be served. SSNY shall mail process NOTICE OF FORMATION OF AFC Sixth Funding LLC, App. for Auth. against it may be served. SSNY Call 888-748-8748 x109 to the LLP, 31-37 West 27th Street, Communications LLC. Arts. of Org. filed Sec’y of State (SSNY) 9/15/09. shall mail process to the LLC, Attn: New York, NY, 10001. Profession to filed with Secy. of State of N.Y. Office location: NY County. LLC org. Manager, 16 East 34th St., 10th Fl., be practiced by LLP: Architects. (SSNY) on 8/3/2009. Office location: in DE 1/5/06. SSNY designated as New York, NY 10019. Purpose: any New York County. SSNY designated agent of LLC upon whom process lawful act or activity. SEEKING NOTICE OF FORMATION OF as agent of LLC upon whom process against it may be served. SSNY shall EMPLOYMENT DoubleDateMaker LLC. Arts. of Org. against it may be served. The P.O. mail copy of process to Nat. Reg. address to which SSNY shall mail a Notice of Formation of GOING APE filed with Secy. of State of N.Y. Agents, 875 Ave of the Americas, NY, HOSPITALITY LLC. Arts. of Org. filed (SSNY) on 07/02/09. Office location: copy of any process upon him/her is NY 10001, the Reg. Agt. upon whom Professional, Bright, Clever C/O the LLC: Anthony Pellecchia, CPA with Secy. of State of NY (SSNY) on New York County. SSNY designated proc. may be served. DE office addr.: 09/16/09. Office location: NY County. and Creative. Please learn more as agent of LLC upon whom process 3117 Richmond Rd. Staten Island, 160 Greentree Dr., Ste. 101, Dover, SSNY designated as agent of LLC about me at my Web Site against it may be served. SSNY shall NY 10306. The Principal Business DE 19904. Cert. of Form. on file: Address of the LLC is: 45 Stella upon whom process against it may mail process to: 250 West 103rd SSDE, Townsend Bldg., Dover, DE be served. SSNY shall mail process www.PeterSHoffman.com Street, 9F, New York, NY 10025. Place Middlesex, NJ 08846. Purpose: 19901. Purpose: any lawful activities. any lawful activity. to Lile H. Deinard, c/o Dorsey & Purpose: any lawful activity. Whitney LLP, 250 Park Ave., NY, NY Notice of Qualification of BNCB 10177. Purpose: Any lawful activity. WATER TALK LLC Articles of Org. Notice of Formation of MERGER SUB, LLC. Authority filed PUBLIC & LEGAL filed NY Sec. of State (SSNY) VANDERCHURCH EQUITIES, LLC. with Secy. of State of NY (SSNY) on Notice of Qualification of NY Trio JV 7/20/09 as WATERTALK LLC. Office Arts. of Org. filed with Secy. of State NOTICES 09/30/09. Office location: NY County. LLC, App. for Auth. filed Sec’y of State in NY Co. SSNY desig. agent of LLC of NY (SSNY) on 09/21/09. Office LLC formed in Delaware (DE) on (SSNY) 7/23/09. Office location: NY upon whom process may be served. location: NY County. SSNY designat- 09/08/09. SSNY designated as agent County. LLC org. in DE 4/24/09. BMBA, LLC, a domestic Limited SSNY shall mail copy of process to ed as agent of LLC upon whom of LLC upon whom process against it SSNY designated as agent of LLC Liability Company (LLC) filed with the 95 Christopher St., Apt. 11M, NY, NY process against it may be served. may be served. SSNY shall mail upon whom process against it may Sec of State of NY on 5/22/09. NY 10014. Purpose: Any lawful purpose. SSNY shall mail process to Judson process to Capitol Services, Inc., 615 be served. SSNY shall mail copy of Office location: New York County. Realty, 145 57th St., #5, NY, NY S. Dupont Hwy., Dover, Cnty. of Kent, SSNY is designated as agent upon 10022. Purpose: Any lawful activity. process to NCR, 10 E. 40th St., 10th Notice of Formation of EAST 88TH DE 19901, which is also the. DE Fl., NY, NY 10016, the Reg. Agt. upon whom process against the LLC may STREET LLC. Arts. of Org. filed with addr. of LLC. Arts. of Org. filed with whom proc. may be served. DE office be served. SSNY shall mail a copy Secy. of State of NY (SSNY) on NOTICE OF FORMATION of FOGEL Secy. of State of the State of DE, 410 addr.: c/o NCR, 615 S. DuPont Hwy., of any process against the LLC 09/10/09. Office location: NY County. NEALE WEALTH MANAGEMENT Federal St., Ste. 3, Dover, DE 19901. Dover, DE 19901. Cert. of Form. on served upon him/her to Larry Taube, Princ. office of LLC: Audrey Orell, 410 LLC. Arts. Of Org. filed with Secy. Of Purpose: Any lawful activity. file: SSDE, Townsend Bldg., Dover, DE 340 E. 64th St., #9G, NY, NY 11065 E. 88th St., NY, NY 10128. SSNY State of N.Y. (SSNY) on 08/04/09. 19901. Purpose: any lawful activities. General purposes designated as agent of LLC upon Office location: New York County. Notice of Formation of Lansing Part- whom process against it may be SSNY designated as agent of LLC ners LLC. Articles of Organization C.R.I.M.M.E.S. INVESTIGATIONS & Notice of Formation of ANTENA served. SSNY shall mail process to upon whom process against it may filed with Secretary of State of NY SECURITY CONSULTANTS LLC. Arts. LATINA INTERNATIONAL LLC. Arts. the LLC at the addr. of its princ. be served. SSNY shall mail process (SSNY) on 12/17/2008. NY Office of Org. filed with Secy. of State of N.Y. of Org. filed with Secy. of State of NY office. Purpose: Any lawful activity. to: 90 Broad St. Suite 2202, NY, NY Location: New York County. SSNY (SSNY) on 9/16/2009. Office location: (SSNY) on 9/8/09. Office location: NY 10004. Purpose: Any lawful activity. designated as agent of LLC upon New York County. SSNY designated County. SSNY designated as agent of Notice of Qualification of GEP PART- whom process against it may be as agent of LLC upon whom process LLC upon whom process against it NERS, L.P. Authority filed with Secy. Name of LLC: Jaden Lam, LLC. Arts. served. SSNY shall mail process to against it may be served. The P.O. may be served. SSNY shall mail of State of NY (SSNY) on 08/27/09. of Org. filed Dept. of State of NY on 405 West 23rd Street, Unit 11BC, address to which SSNY shall mail a process to: c/o Law Office of Office location: NY County. LP formed 4/22/09. Office location in NY: NY New York, NY 10011. Purpose: copy of any process upon him/her is Fernando Ramirez, 80 E. 11th St., in Delaware (DE) on 07/30/09. Princ. Cty. Princ. bus. loc.: 750 3rd Ave., Real Estate. C/O the LLC: P.O. Box 984 Peck Slip Ste. 227, NY, NY 10003. Purpose: office of LP: 668 Greenwich St., Ste. Ste. 900, NY, NY 10017. Secy. of Station New York, NY 10272. any lawful activity. 801, NY, NY 10014. SSNY designated State of NY (SSNY) designated as Notice of Qualification of 855 Avenue Purpose: any lawful act. as agent of LP upon whom process agent of LLC upon whom process of the Americas - SFI LLC. Authority NOTICE OF FORMATION OF Jim against it may be served. SSNY shall against it may be served. SSNY shall filed with NY Dept. of State on 9/18/09. NOTICE OF FORMATION OF Greif Photography LLC. Article of mail process to the LP at the addr. of mail a copy of process to: c/o United Office location: NY County. Princ. bus. Rashbaum Associates LLC. Article Organization filed with the Secretary its princ. office. The regd. agent of the States Corporation Agents, Inc., 7014 addr.: 1114 Ave. of the Americas, of Organization filed with the of State of NY (SSNY) on 7/7/2009. company upon whom and at which 13th Ave., Ste. 202, Brooklyn, NY 39th Fl., NY, NY 10036. LLC formed Secretary of State of NY (SSNY) on Office location NEW YORK County. process against the company can be 11228 registered agent upon whom in DE on 4/3/09. NY Sec. of State 09/11/09. Office location NEW YORK SSNY has been designated as agent served is Corporation Service Co. process may be served. Purpose: any designated as agent of LLC upon County. SSNY has been designated upon whom process against it may (CSC), 80 State St., Albany, NY lawful activity. whom process against it may be as agent upon whom process against be served. The Post Office address to 12207-2543. Name and addr. of each served and shall mail process to: c/o it may be served. The Post Office which the SSNY shall mail a copy of general partner are available from Name: AE HOSPITALITY GROUP LLC CT Corporation System, 111 8th Ave., address to which the SSNY shall mail any process against the LLC served SSNY. DE addr. of LP: c/o CSC, 2711 Art. Of Org. Filed Sec. Of State of NY NY, NY 10011, regd. agt, upon whom a copy of any process against the upon him/her is C/O the LLC United Centerville Rd., Ste. 400, Wilmington, 05/26/09. Off. Loc: New York Co. SSNY process may be served. DE addr. of LLC served upon him/her is C/O the States Corporation Agents Inc., New Castle Cnty., DE 19808. Arts. of designated as agent upon whom LLC: c/o The Corporation Trust Co., LLC 425 Madison Ave. New York, 7014 13th Avenue, Suite 202. Org. filed with the Secy. of State of process against it may be served. 1209 Orange St., Wilmington, DE NY 10017. Purpose of LLC:to Brooklyn, NY 11228. Purpose of the State of DE, Dept. of State, John SSNY to mail copy of process the 19801. Arts. of Org. filed with DE engage in any lawful act or activity. LLC: to engage in any lawful act or G. Townsend Bldg., 401 Federal St., THE LLC, C/O Patrice Bihina, 150 Sec. of State, 401 Federal St., Dover, Street address of Principal Business activity. Street address of Principal Ste. 4, Dover, DE 19901. Purpose: Ludlow Street, Room 1 F, New York, DE 19901. Purpose: real estate location is: 425 Madison Ave. New Business location is: 119 West 72nd Any lawful activity. NY 10002. Purpose: Any lawful act. investments and finance. York, NY 10017. Street #252. New York, NY 10023.

October 12, 2009 | Crain’s New York Business | 23 nb41p23-24cl.qxp 10/9/09 2:07 PM Page 24

PUBLIC & LEGAL NOTICES

Notice of Qualification of Tiger NOTICE OF FORMATION OF The Notice of Qualification of Equitech Notice of Qualification of Jericho Application for Authority of Marathon Legatus Partners, LP, App. for Auth. Proton Institute of New York LLC. Advisors, L.P. Authority filed with NY Capital Partners II L.P., App. for Auth. Legacy Securities (Private Fund) GP, filed Sec’y of State (SSNY) 8/10/09. Article of Organization filed with the Dept. of State on 6/9/09. Office loca- filed Sec’y of State (SSNY) 5/28/09. LLC. Authority filed with NY Dept. of Office location: NY County. LP org. in Secretary of State of NY (SSNY) on tion: NY County. Princ. bus. addr.: 640 Office location: NY County. LP org. in State on 9/11/09. Office location: NY DE 8/7/09. SSNY designated as 09/08/2009 Office location NEW 5th Ave., 10th Fl., NY, NY 10019. LP DE 5/22/09. SSNY designated as County. LLC formed in DE on 7/7/09. agent of LP upon whom process YORK County. SSNY has been des- formed in DE on 4/8/09. NY Sec. of agent of LP upon whom process NY Sec. of State designated as agent against it may be served. SSNY shall ignated as agent upon whom process State designated as agent of LP against it may be served. SSNY shall of LLC upon whom process against it mail copy of process to Attn: Jesse against it may be served. The Post upon whom process against it may mail copy of process to 540 Madison may be served and shall mail process Ro, 101 Park Ave., 47th Fl., NY, NY Office address to which the SSNY be served and shall mail process to: Ave., 19th Fl., NY, NY 10022. DE to the principal business addr. of the 10178. DE office addr.: CSC, 2711 shall mail a copy of any process c/o CT Corporation System, 111 8th office addr.: CSC, 2711 Centerville LLC: c/o Marathon Asset Centerville Rd., Wilmington, DE against the LLC served upon him/her Ave., NY, NY 10011, regd. agt. upon Rd., Wilmington, DE 19808. Cert. of Management, L.P., One Bryant Park, 19808. Cert. of LP on file: SSDE, is C/O the LLC 80 State Street. whom process may be served. DE LP on file: SSDE, Townsend Bldg., 38th Fl., NY, NY 10036. DE addr. of Townsend Bldg., Dover, DE 19901. Albany, NY 12207. Purpose of LLC: addr. of LP: 1209 Orange St., Dover, DE 19901. Name/addr. of each LLC: National Corporate Research, Name/addr. of each gen. ptr. avail. at to engage in any lawful act or activity. Wilmington, DE 19801. Name/addr. of gen. ptr. avail. at SSNY. Purpose: any Ltd., 615 S. DuPont Hwy., Dover, DE SSNY. Purpose: any lawful activities. Street address of Principal Business genl. ptr. available from NY Sec. of lawful activities. 19901. Arts. of Org. filed with DE Sec. location is: 751 2nd Avenue. New State. Cert. of LP filed with DE Sec. of State, 401 Federal St., Dover, DE Notice of Authority is hereby given York, NY 10017. of State, 401 Federal St., Dover, DE 19901. Purpose: any lawful activity. 19901. Purpose: any lawful activity. Notice of Formation of TACHE pursuant to Section 206 of the DIAMONDS, LLC, a domestic LLC. Limited Liability Company Law of New Notice of Formation of de.Sign Studio Arts. of Org. filed with the SSNY on R & D 1670 LLC, a domestic Limited York, of LeadDog Capital Equities, LLC. Articles of Organization filed Notice of Qualification of M.D. SASS 08/20/2009. Office location: NY Liability Company (LLC) filed with the LLC, a limited liability company, with Secy. of State of NY (SSNY) on FINSTRAT AMERRA CAPITAL County. SSNY has been designated Sec of State of NY on 6/19/09. NY formed in the state of New York on 08/05/09. Office location: NY County. HOLDINGS, LLC. Authority filed with as agent upon whom process Office location: New York County. December 29, 2008. The principal SSNY designated as agent of LLC Secy. of State of NY (SSNY) on against the LLC may be served. SSNY is designated as agent upon office in New York County is 120 Wall upon whom process against it may 08/21/09. Office location: NY County. SSNY shall mail a copy of process whom process against the LLC may Street, 24th Floor, New York, NY be served. SSNY shall mail process LLC formed in Delaware (DE) on to: 550 Fifth Ave, NY, NY 11101. be served. SSNY shall mail a copy 10005. The New York Secretary of to the LLC, 234 West 20th St., Suite 01/28/09. SSNY designated as agent Purpose: Any Lawful Purpose. of any process against the LLC State has been designated as its 4B, New York, NY 10011. Purpose: of LLC upon whom process against it served upon him/her to Maidman & agent for service of process and a any lawful act or activity. may be served. SSNY shall mail Mittelman, LLP, 70 E. 55th St., NY, copy of such process is to be sent to process to c/o Corporation Service Notice of Formation of Cakelab LLC. NY 10022. General purposes. Arts. of Org. filed with the Secy. of 49 Locust Avenue, Suite 107, New Notice of Formation of WBH-BD LLC, Co., 80 State St., Albany, NY 12207. Canaan, CT 06840. The nature of the State of NY (SSNY) on 8/19/09. Office Art. of Org. filed Sec’y of State DE addr. of LLC: 2711 Centerville Notice of Formation of Renton business is administrative services. Rd., Ste. 400, Wilmington, DE 19808. location: NY County. SSNY designat- (SSNY) 6/24/09. Office location: NY ed as agent of LLC upon whom Productions LLC. Articles of County. SSNY designated as agent of Arts. of Org. filed with Secy. of State, Organization filed with Secy. of State NOTICE OF FORMATION OF LIMIT- 401 Federal St., Dover, DE 19901. process against it may be served. LLC upon whom process against it SSNY shall mail to: c/o G. Hiura, 215 of NY (SSNY) on 7/20/09. Office ED LIABILITY COMPANY. NAME: may be served. SSNY shall mail copy Purpose: Any lawful activity. location: NY County. SSNY designat- VISTA REVERSE 23, LLC. East 24th Street, #515, NY, NY of process to 360 Lexington Ave., NY, 10010. Purpose: any lawful activity. ed as agent of LLC on whom process Application for Authority was filed NY 10017. Reg. Agt. at such addr. Notice of formation of Limited Liability against it may by served. SSNY shall with the Secretary of State of New upon whom proc. may be served is Company. Name: Legacy Housing mail process to the LLC, 740 West York (SSNY) on 09/04/09. The LLC David S. Kriss, Esq. Purpose: any Associates LLC (“LLC”). Articles of NOTICE OF FORMATION of KTD End Ave., #82A, New York, NY was originally filed with the Secretary lawful activities. Organization filed with the Secretary Media Corporation, LLC. Article of 10025. Registered agent of LLC on of State of Virginia on 01/04/08. of State of the State of New York Organization filed with the Secretary whom process against it may be Office location: New York County. Notice of formation of Sanders (“SSNY”) on September 2, 2009. NY of State of NY (SSNY) on 08/14/09. served: Stephen Kaiser, 740 West SSNY has been designated as agent Capital, LLC. Articles of Organization office location is New York County. Office location: NY County. SSNY has End Ave., #82A, New York, NY of the LLC upon whom process filed with the Secretary of State of The SSNY has been designated as been designated as agent upon whom 10025. Purpose: any lawful activity. against it may be served. SSNY shall the State of New York (SSNY) on agent of the LLC upon whom process process against it may be served. mail a copy of process to the LLC, 08/07/09. Office location New York against it may be served. The SSNY The Post Office address to which the c/o Jane B. Holzer, 41 East 65th SSNY shall mail a copy of any Notice of Formation of STEVENSON County. SSNY has been designated shall mail a copy of any process to ADVISORS, LLC. Arts. of Org. filed Street, New York, New York 10065. as agent for service of process. the LLC c/o Selfhelp Community process against the LLC served upon Purpose: For any lawful purpose. him is C/O the LLC 12 Stuyvesant with Secy. of State of NY (SSNY) on SSNY shall mail copy of any process Services, Inc., 520 Eighth Avenue, 09/03/09. Office location: NY County. served against the LLC to Jean New York, New York 10018. Oval #TH. N.Y., N.Y., 10009. Date of NOTICE OF FORMATION of LuxurUP, Dissolution: NA. Purpose of LLC: to Princ. office of LLC: 212 W. 91st St., Margo Reid, at the LLC’s principal Purpose/character of LLC is to Apt. 716, NY, NY 10024. SSNY des- LLC. Article of Organization filed with business location, 20 East 9th Street engage in any lawful act or activity. engage in any lawful act or activity. the Secretary of State of NY (SSNY) Street address of Principal Business ignated as agent of LLC upon whom 21B, New York, NY 10003. Purpose: process against it may be served. on 05/07/09. Office location: NY any lawful purpose. location is: 12 Stuyvesant Oval #TH, County. SSNY has been designated NOTICE OF FORMATION OF TNC- N.Y., N.Y., 10009. SSNY shall mail process to the LLC, as agent upon whom process against SERVICES LLC. Arts. of Org. filed 888 Seventh Ave., 35th Fl., NY, NY it may be served. The Post Office Notice of Formation of ZEKO PART- with Secy. of State of N.Y. (SSNY) on 10106. Purpose: Any lawful activity. address to which the SSNY shall NERS, LLC. Arts. of Org. filed with July 29, 2009. Office location: New Notice of Formation of SP49 Partners, Secy. of State of NY (SSNY) on LLC. Articles of Organization filed mail a copy of any process against York County. SSNY designated as Notice of Formation of 47th Street 08/04/09. Office location: NY County. with Secy. of State of NY (SSNY) on the LLC served upon him is C/O agent of LLC upon whom process Partners One, LLC. Arts. of Org. filed Princ. office of LLC: c/o Fehmi Zeko, 04/01/09. Office location: NY County. LuxurUP LLC, Room 16D, 7 W. 45th against it may be served. SSNY shall with Secy. of State of NY (SSNY) on 241 Central Park West, Apt. 15D, SSNY designated as agent of LLC St. N.Y., N.Y., 10036. Purpose of mail process to: 140 West End Ave. 8/14/09. Office location: NY Co. SSNY NY, NY 10024. SSNY designated as upon whom process against it may LLC: to engage in any lawful act or #22B New York, NY 10023. Purpose: designated as agent of LLC upon agent of LLC upon whom process be served. SSNY shall mail process activity. Street address of Principal any lawful activity. whom process against it may be against it may be served. SSNY to the LLC, 250 East 54th St., Apt. Business location is: Rm 16D, 7 W. served. SSNY shall mail process to: shall mail process to the LLC at the 35D, New York, NY 10022. Purpose: 45th St. N.Y., N.Y., 10036 Notice of Qualification of Oca Art & Seyfarth Shaw LLP, Attn: Stephen addr. of its princ. office. Purpose: any lawful act or activity. Design LLC. Authority filed with Secy. Epstein, Esq., 620 Eighth Ave., NY, NY Any lawful activity. Notice of Formation of NEW YORK of State of NY (SSNY) on 8/7/09. 10018. Purpose: any lawful activities. COSMOS LLC. Arts. of Org. filed with Office location: NY County. LLC Notice of Formation of IC Income and SMART BEAUTY NOW LLC, a formed in Delaware (DE) on 8/7/07. Growth Fund, LLC. Arts. of Org. filed Secy. of State of NY (SSNY) on Notice of Qualification of Crane domestic Limited Liability Company SSNY designated as agent of LLC with Secy. of State of NY (SSNY) on 08/18/09. Office location: NY County. Worldwide Logistics LLC. Authority (LLC) filed with the Sec of State of upon whom process against it may 8/26/09. Office location: NY County. Princ. office of LLC: 75 Greene St., filed with NY Dept. of State on 9/9/09. NY on 7/31/09. NY Office location: be served. SSNY shall mail process SSNY designated as agent of LLC 2nd Fl., NY, NY 10018. SSNY desig- Office location: NY County. Princ. bus. New York County. SSNY is designat- to princ. bus. loc.: c/o Tigris Financial upon whom process against it may be nated as agent of LLC upon whom addr.: 16680 Central Green Blvd., ed as agent upon whom process Group Ltd., 1370 Ave. of the served. SSNY shall mail process to: process against it may be served. Houston, TX 77032. LLC formed in against the LLC may be served. SSNY Americas, 19th Fl., NY, NY 10019. 171 Madison Ave., Ste. 1000, NY, NY SSNY shall mail process to c/o DE on 6/17/08. NY Sec. of State des- shall mail a copy of any process DE address of LLC: United Corporate 10016. Purpose: any lawful activity. Cantor & Webb P.A., 1001 Brickell ignated as agent of LLC upon whom Bay Dr., #3112, Miami, FL 33131. against the LLC served upon him/her Services, Inc., 874 Walker Rd., Ste. to The LLC, 60 W. 23rd St., #1717, C, Dover, DE 19904. Arts. of Org. process against it may be served and Purpose: Any lawful activity. NOTICE OF QUALIFICATION OF NY, NY 10010. General purposes. filed with DE Secy. of State, shall mail process to: c/o CT Chimera Asset Holding LLC. Townsend Bldg., Dover, DE 19901. Corporation System, 111 8th Ave., NOTICE OF FORMATION OF Project Authority filed with Secy. of State of Purpose: any lawful activity. NY, NY 10011, regd. agt. upon whom White LLC. Article of Organization Notice of formation of Limited Liability NY (SSNY) on 08/11/09. Office loca- process may be served. DE addr. of filed with the Secretary of State of NY Company: UVX, LLC Articles of tion: NY County. LLC formed in LLC: c/o The Corporation Trust Co., (SSNY) on 08/20/2009. Office location Organization filed with the Secretary Notice of Formation of Worldwide Delaware (DE) on 06/08/09. Princ. 1209 Orange St., Wilmington, DE NEW YORK County. SSNY has been of State of New York (SSNY) on May Plaza Dental, PLLC, a professional office of LLC: 1211 Avenue of the 19801. Arts. of Org. filed with DE Sec. designated as agent upon whom 2, 2008. N.Y. Office location: New service limited liability company Americas, Ste. 2902, NY, NY 10036. of State, 401 Federal St., Dover, DE process against it may be served. The York County. SSNY has been desig- (PLLC). Arts. of Org. filed with Secy. SSNY designated as agent of LLC 19901. Purpose: any lawful activity. Post Office address to which the nated as an agent upon whom of State of NY (SSNY) on 2/25/2005. upon whom process against it may SSNY shall mail a copy of any process process against it may be served. Office location: NY County. SSNY be served. SSNY shall mail process against the LLC served upon him/her The Post Office address to which the designated as agent of PLLC upon to the LLC at the princ. office of the is C/O the LLC Woods & Lonergan SSNY shall mail a copy of any whom process against it may be LLC. DE addr. of LLC: c/o Corporation Advertise on LLP, 292 Madison Avenue, 22nd process against the LLC served upon served. SSNY shall mail process to: Service Co., 2711 Centerville Rd., Ste. Floor. New York, NY 10017. Date of him/her is: the LLC, C/O M. Bradford c/o Business Filings Inc., 187 Wolf 400, Wilmington, New Castle Cnty., www.crainsnewyork.com Dissolution: None Purpose of LLC:to Randolph ESQ PLLC, 1230 Avenue Road, Ste. 101, Albany, NY 12205, DE 19808. Arts. of Org. filed with engage in any lawful act or activity. of the Americas, 7th Floor, New York, which is also the registered agent Secy. of State of the State of DE, Div. Call John Gallagher Street address of Principal Business NY 10020. Character of LLC: To act upon whom process may be served. of Corps., John G. Townsend Bldg., location is: 37-39 West 8th Street. as a trustee and to engage in any Term: until 12/31/2045. Purpose: 401 Federal St.-Ste. 4, Dover, DE @ 212-210-0189 New York, NY 10016. lawful act or activity. practice the profession of dentistry. 19901. Purpose: Any lawful activity.

24 | Crain’s New York Business | October 12, 2009 20091012-NEWS--0025-NAT-CCI-CN_-- 10/9/2009 7:14 PM Page 1

FOR THE RECORD

through Friday, at 110 William St., sixth Kobe of CB Richard Ellis’ office in Robert S. Kapito, president and director floor. Proposals must be received no later McLean, Va., represented the GSA. of the investment company, sold 8,500 ABOUT THIS SECTION than Nov. 9 at 4 p.m. Questions about shares of common stock at prices G Fiver Children’s Foundation FOR THE RECORD is a weekly listing of information from the public record that the subject matter of this bid should be signed a ranging from $203.73 to $205.68 per directed to [email protected]. seven-year lease for 5,200 square feet on share on Sept. 25, in a transaction worth can help businesspeople find opportunities in the New York area by providing part of the 24th floor of 519 Eighth $1,738,805. He now directly holds leads for clients, potential new business and competitors. OTHER SERVICES Ave., owned by The Kaufman Organi- 971,656 shares. To ask questions or get more information about this section, contact G Department of Environmental Protection zation. The building is approximately Denise Southwood at [email protected]. Seeks competitive sealed bids by 11:30 300,000 square feet. Carri Lyon and G Movado Group Inc. (MOV) a.m., Oct. 27, for the service and repair Mark Mandell of Cushman & Wake- Richard J. Cote, executive vice president, of elevators at various water-pollution- field represented the tenant, and the chief operating officer and director of control plants citywide. A pre-bid con- landlord was represented in-house by the watchmaker, exercised options on ference will be held on Oct. 20 at 10 a.m. Steven Kaufman and Barbara Raskob. 100,000 shares of common stock at BANKRUPTCIES rehabilitation of elevators. Bid at 96-05 Horace Harding Expressway, The asking rent was $35 per square foot. $10.50 each on Sept. 24, in a transaction documents are to be obtained in person second-floor conference room #4, worth $1,050,000. The following listings are the latest from 9 a.m. to 4 p.m. at the Office of Queens. For additional information, RETAIL/SHOWROOMS available on companies that filed for Contracts, 1 Centre St., 18th floor contact Fabian Heras at (718) 595-3252. G Almar Sales Co. leased the entire third G Vornado Realty Trust (VNO) bankruptcy protection in the Southern and north. An optional pre-bid conference floor, or 11,748 square feet, at 320 Fifth Michelle Felman, executive vice Eastern Districts of New York. will be held on Oct. 14 at 11 a.m. at Ave., a 12-story, 120,000-square-foot president of acquisitions at the real Information was obtained from U.S. 314 W. 54th St. For more information, REAL ESTATE TRANSACTIONS building owned and managed by Brause estate investment trust, exercised Bankruptcy Court records available on contact Louis Pastore at (212) 669-8557 Realty Inc. Corey Abdo and Jonata options on 8,885 shares of common Public Access to Court Electronic Records. or [email protected]. Information on the latest real estate deals is Dayan of Winoker Realty Co. stock at $33.75 each on Sept. 28, in a Listings are in alphabetical order. provided by brokers and/or their represented the landlord, and Michael transaction worth $299,840. On the G Department of Correction representatives. Companies that would like Beyda of Benchmark Properties same day, she sold 8,885 shares at G Lightning AB Corp. Requests competitive sealed bids by their real estate transactions to appear in represented the accessories firm. The $66.37 each in a transaction worth 49 Glen Cove Ave., Glen Cove, L.I. 11 a.m. on Nov. 5 for the design and this section should e-mail descriptions and asking rent was $42 per square foot. $589,663. She now directly holds 1,150 Filed for Chapter 11 bankruptcy construction of a one-story classroom information that follow this format to shares. protection on Sept. 29. The filing cites modular building on Rikers Island. A [email protected] with G Auffrance, a designer of custom Robert H. Smith, trustee, sold 8,197 liabilities of $1,000,001 to $10,000,000 recommended pre-bid conference and “Real estate transaction” in the subject line. furniture, signed a lease for 3,000 square shares of common stock at prices and assets estimated at $500,001 to site visits are scheduled for Oct. 20 at 10 Deals are listed in order of square footage. feet at 237 E. 58th St., owned by ranging from $66.91 to $67.08 per share $1,000,000. Among the creditors with a.m. at 640 Mandinici Road, East Elm- Marolda Properties. Faith Hope on Sept. 29, in a transaction worth the largest unsecured claims are New hurst, Queens. There is a $25 fee for the OFFICE Consolo and Joseph Aquino of $548,980. He now directly holds 1,795 Stream Real Estate, owed $700,000, and bid package, payable by check or money G General Motors Co. renewed a Prudential Douglas Elliman represented shares. Mitchell Domin, owed $300,000. order made out to the Commissioner of 114,300-square-foot lease for the 14th the landlord, and Robin Abrams of Finance. For additional information through 16th floors of the 50-story, Lansco Corp. represented the tenant. G ABM Industries Inc. (ABM) G Saratoga Country Kitchen Inc. regarding this project, contact Lilliana 2 million-square-foot building at The rent is $150 per square foot. Linda L. Chavez, founder and chairman 5 Juliette Road, West Hempstead, L.I. Alvarez-Cano at (718) 546-0686 or 767 Fifth Ave. Representing the tenant of the Center for Equal Opportunity at Filed for Chapter 11 bankruptcy protec- [email protected]. in the negotiations for the 10-year lease the environmental and facilities services tion on Sept. 29. The filing cites liabili- were Peter Riguardi, Michael Shenot STOCK TRANSACTIONS company, exercised options on 15,000 ties of $100,001 to $500,000 and assets G Department of Design and Construction and Lloyd Desatnick of Jones Lang shares of common stock at prices estimated at $50,001 to $100,000. Among Seeks competitive sealed bids for the LaSalle. The landlord, Prop- The following are recent insider transac- ranging from $13.61 to $13.89 on Sept. the creditors with the largest unsecured reconstruction of Hugh Grant Circle in erties, was represented in-house by tions at New York’s largest publicly held 29, in a transaction worth $206,950. On claims are the New York State Depart- the Bronx, including traffic and Robert Selsam and Andrew Levin. The companies filed with the Securities and the same day, she sold 15,000 shares at ment of Taxation and Finance, owed streetlighting work by 11 a.m. on Oct. asking rent was not disclosed. Exchange Commission by executives and prices ranging from $20.97 to $21.44 in $160,000; and the New York State Work- 28. Bid documents are available online major shareholders. It’s believed that insiders a transaction worth $317,861. She now ers’ Compensation Board, owed $48,940. at www.nyc.gov/ddc. Contact Alicia G Country-Wide Insurance Co. signed a may time transactions to their personal ad- directly holds 9,032 shares. Williams at (718) 391-2610 or long-term lease renewal for 109,000 vantage, and that these transactions are G Sungary Donuts Inc., dba Dunkin’ [email protected] with questions. square feet of space at The Trump frequently associated with future stock price G Annaly Capital Management Inc. (NLY) Donuts Organization’s 40 Wall St., a 1,485,440- performance. Listings are in order of the dol- Jonathan D. Green, director at the real 2302 Knapp St., Brooklyn G Department of Parks and Recreation square-foot, 70-story office building. lar volume of the transactions. Information estate investment trust, exercised Filed for Chapter 11 bankruptcy Requests competitive sealed bids by Adam Foster, Meghan Holzhauer, Brad was obtained from Thomson Reuters. options on 20,000 shares of common protection on Oct. 2. The filing cites 10:30 a.m. on Nov. 4 for the reconstruc- Gerla and Gregg Rothkin of CB stock at $8.63 each on Sept. 25, in a liabilities of $1,000,001 to $10,000,000 tion of the tennis courts in Forest Park, Richard Ellis represented the landlord, G The Nasdaq OMX Group Inc. (NDAQ) transaction worth $172,600. and assets estimated at $0 to $50,000. Queens. Bid documents can be obtained and Mark Weiss of Newmark Knight Glenn H. Hutchins, a director of the Among the creditors with the largest in the Blueprint Room of the Olmsted Frank represented the tenant. The exchange, exercised options on G IAC/InterActiveCorp (IACI) claims are CIT Small Business Lending, Center in Flushing Meadows Corona asking rent was not disclosed. 8,177,720 shares of common stock at Donald R. Keough, director at the media owed $422,090, of which $182,090 is Park from 8 a.m. to 3 p.m. with a $25 $14.50 each on Sept. 25, in a transaction company, exercised options on 2,499 unsecured; and Manickawasagar company check or money order payable G NYC Office Suites inked a deal with worth $118,576,944. shares of common stock at $18.51 each Subramania, owed $270,000. to the City of NY, Parks and Recreation. HarperCollins for an 11-year sublease of on Sept. 25, in a transaction worth Call Juan Alban at (718) 760-6771, or 74,754 square feet at the 585,156-square- G BlackRock Inc. (BLK) $46,256.  G Tim & Tab Donuts Inc., dba Dunkin’ e-mail [email protected]. foot office building at 1350 Sixth Ave. Donuts NYC Office Suites will occupy the sec- 2302 Knapp St., Brooklyn GOODS AND SERVICES ond, third and fourth floors of the 35- Filed for Chapter 11 bankruptcy G Department of Education story building. Scott Panzer and Sean DEALS ROUNDUP protection on Oct. 2. The filing cites Seeks competitive sealed bids by 5 p.m. Black of Jones Lang LaSalle represented liabilities of $1,000,001 to $10,000,000 on Oct. 19 to supply National Geo- the subtenant, and Joseph Harkins of TRANSACTION SIZE and assets estimated at $0 to $50,000. graphic educational software to schools Grubb & Ellis Co. represented the TARGET COMPANY (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE Among the creditors with the largest and offices.To obtain the bid documents, sublessor. The average asking rent at the claims are CIT Small Business Lending, contact [email protected] building is $62.96 per square foot. Chesapeake Energy Corp., $588.0 Global Infrastructure Partners FB M&A natural gas gathering (Manhattan) owed $330,305, of which $155,305 is with the bid number (#Z1277040) and and processing assets unsecured; and the New York State title in the subject line of your e-mail. G Waterfront Media, an online health Geely Automobile Holdings Ltd. $244.8 Goldman Sachs Group, merchant GCI Department of Taxation and Finance, For additional information, send an company, signed a 38,000-square-foot banking division (Manhattan) owed $24,000. e-mail to [email protected]. lease for nine years for part of the 16th floor of 345 Hudson St. The first four Twitter Inc. $100.0 InSight Venture Partners (Manhattan), GCI G Department of Homeless Services Institutional Venture Partners, Spark years of the lease will be a sublease from Capital, T. Rowe Group Inc. GOVERNMENT CONTRACT Requests competitive sealed bids for CT Corp., and the remainder will be a OPPORTUNITIES preplated meals and ready-to-eat food direct lease from the owner, Trinity Real Rearden Commerce Inc. $40.0 J.P. Morgan Partners (Manhattan) GCI for individuals with special dietary needs. Estate. The building is 17 stories and Cedar Shopping Centers Inc. $30.0 Yorkville Advisors GCI Hundreds of potential government An optional pre-bid conference is sched- totals more than 900,000 square feet. (Port Washington, L.I.) contracts are available in the New York uled for Oct. 16 at 10:30 a.m. at 33 Bea- Mitti Liebersohn and Scott Silverstein Insulet Corp. $27.5 Deerfield Management Co. GCI area.The following are selected contract ver St., 13th floor. For more informa- of Cushman & Wakefield represented (Manhattan) opportunities recently announced by New tion, contact Shirley Fleming-Morris at the tenant, Mark Friedman of Prospect Capital Corp. $25.3 Not disclosed GCI York City agencies.To learn how to sell (212) 361-8422 or [email protected]. FirstService Williams represented CT (Manhattan) goods and services to city government, visit Corp., and the landlord was represented Keryx Biopharmaceuticals Inc. $20.0 Not disclosed GCI www.nyc.gov/selltonyc. For a searchable G Economic Development Corp. in-house by Jason Pizer and Tom Lynch. (Manhattan) database of current procurement notices, Requests proposals for a consultant or The average asking rent at the building PrimeraDx Inc. $20.0 Abingworth Management Ltd., Burrill GCI visit www.nyc.gov/cityrecord. Listings are consultant team to develop and is $45.94 per square foot. Venture, CHL Medical Partners, in alphabetical order by category and implement a curatorial program to InterWest Partners, MPM Capital, department. exhibit the artwork of local visual artists. G The U.S. Department of Agriculture The Invus Group (Manhattan), The objective of “Curate New York leased the entire 18,500-square-foot Malaysian Technology Development Corp. CONSTRUCTION SERVICES City” is to provide short-term seventh floor of Muss Development Co.’s Gamma Medica Ideas Inc. $19.0 Capital Resource Partners, GCI G Department of Citywide Administrative opportunities to display artists’ work and Queens Tower at 88-11 165th St. The Psilos Group (Manhattan) Services provide a benefit to city residents and lease was negotiated by the U.S. General Selected deals announced during the week of Sept. 21 involving companies in metro New York. Requests competitive sealed bids by visitors by opening these exhibitions to Services Administration for a term of 10 FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing 11:30 a.m. on Nov. 9 for an elevator the public free of charge. Documents are years. The asking rent was $25 per shares of a company with the participation of a financial buyer. GCI: Growth capital investment represents new money invested in a company for a minority stake. upgrade in a midtown community court. available for in-person pick-up between square foot. Representing the landlord source: capitaliq The work includes both installation and 9:30 a.m. and 4:30 p.m., Monday was Stanley Markowitz of Muss. Maria

October 12, 2009 | Crain’s New York Business | 25 20091012-NEWS--0026-NAT-CCI-CN_-- 10/9/2009 7:31 PM Page 1

STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION (Required by 39 U.S.C. 3685) Look who remade New York City Rosenthal 1.Publication Title: Crain’s New York Business 2.Publication No.:000-209 3.Filing Date: 9-30-09 4.Issue Frequency: Weekly, except combined issues Continued from Page 1 volving herself in design minutiae, know that by now,” she says. 5th wk of June & 1st wk of July, 2nd & 3rd wks “Amanda has made a mark on the dictating such details as the size of Some have learned that Ms.Bur- gains of July, 4th wk of July & 1st wk of Aug, 4th & 5th wk of Aug, 3rd & 4th wk of Dec. city in a way few others have,” says window sills and the height of park den’s ideas can produce stronger 5.No.of Issues Published Annually: 46 Continued from Page 2 6.Annual Subscription Price: $59.79 Kent Barwick, the former president benches. Many lawyers, architects, projects. Jesse Masyr, a lawyer, says 7.Complete Mailing Address of Known Office of of the Municipal Art Society of planners and developers complain that several changes Ms. Burden consultancy. Publication: 711 Third Avenue, New York, NY 10017- 4036, New York County New York,a leading urban planning that she is unyielding in her vision asked for in the design of a park Of course, Rosenthal is just one 8.Complete Mailing Address of Headquarters or and preservation advocacy group. and that catering to her taste adds IKEA was building near its Red of several local factors benefiting General Business Office of Publisher: 711 Third Avenue, New York, NY 10017-4036 “Her accomplishments have been time and money to their projects. Hook, Brooklyn, store made the from CIT’s problems. Both Hilldun 9.Full Names and Complete Mailing Addresses of extraordinary.” Over a dozen industry heavy- space more inviting. Corp.and Sterling Bancorp’s factor- Publisher, Editor, and Managing Editor: Publisher, Jill Kaplan, 711 Third Avenue, New York, NY 10017- The hallmarks of her time in of- weights,however,declined to attach ing division have recently signed 4036; Editor, Xana Antunes, 711 Third Avenue, New fice include encouraging the hiring their names to their objections, for Hard-won gains dozens of new clients. York, NY 10017-4036; Managing Editor, Glenn Coleman, 711 Third Avenue, New York, NY 10017- of top-flight architects who’ve in- fear that offending her could waylay “she is strong-willed and opin- “We’re getting a huge amount of 4036. jected a new pizzazz into the city, their plans. ionated,”said Mr.Masyr.“But in the new business, and we’re seeing larg- 10.Owner (if owned by a corporation, its name and address must be stated and also immediately thereafter championing greater public access Her detractors say her obtrusive- end, the park looked better.” er accounts than in the past,” says the names and addresses of stockholders owning or holding 1 percent or more of total amount of stock.If to the city’s miles of waterfront,and ness hit a new high last month,when Ms. Burden is also capable of Gary Wassner, chief executive of not owned by a corporation, the names and addresses preserving the character of older the planning commission effective- compromise.That was certainly the Hilldun. of the individual owners must be given.If owned by a partnership or other unincorporated firm, its name neighborhoods. Ms. Burden’s ef- ly lopped 200 feet off the top of a case in the hugely contentious re- and address, as well as that of each individual must be forts will be recognized later this tower on West 53rd Street being de- cent rezoning of 17 blocks in Coney Newspaper ads given.If the publication is published by a nonprofit organization, its name and address must be stated.) month when she receives the Ur- signed by Pritzker Prize-winning Island and an earlier rezoning of 24 meanwhile, Sterling is taking out (Item must be completed.): Crain Communications Inc. ban Land Institute’s prestigious blocks in . newspaper advertisements to attract 1155 Gratiot Avenue, Detroit, MI 48207-2997; K.E. Crain, 1155 Gratiot Avenue, Detroit, MI 48207-2997. J.C. Nichols Prize for Visionaries. In Harlem, she saw the rezoning new clients and acquired a South- R.E.Crain, 711 Third Avenue, New York, NY 10017- Pushing through even one re- She lopped as crucial to encouraging develop- east Asia-based factor last spring in 4036; 11.Known bondholders, mortgagees and other zoning is hard work in New York, ment that could help revitalize the order to expand its geographic foot- security holders owning or holding 1 percent or more where landlords’ fortunes depend 20 stories off art and music scene that had once print. of total amount of bonds, mortgages or other securi- ties: None. on what use the city says they can defined 125th Street.In the end,the Customers caught in CIT’s tur- 12.For completion by nonprofit organizations make of their land. To pull off so a proposed Jean effort took more than three years moil are relieved to find alternatives. authorized to mail at special rates.The purpose, func- tion, and nonprofit status of this organization and the many of them, Ms. Burden com- and many public meetings at which, One of them is Meryl Diamond exempt status for Federal income tax purposes (Check Nouvel tower one). bines her charm, smarts and old- newspaper reports noted, residents Ltd., a $70 million women’s sports- ❏ Has Not Changed During Preceding 12 fashioned political horse-trading. complained about a rich, white so- wear manufacturer selling at stores months ❏ Has Changed During Preceding 12 months. She also spends endless hours walk- cialite leading plans to renew the such as Dress Barn and Stein Mart. (If changed, publisher must submit explanation of ing the city’s neighborhoods to learn historic black neighborhood. After a decade of using CIT as a fac- change with this statement) 13.Publication Name: Crain’s New York Business their quirks and cultivating relation- Eventually Ms.Burden won over tor, the manufacturer suffered 14.Issue Date for Circulation Data Below: ships with council members. architect Jean Nouvel. Ms. Burden the local city councilwoman by de- through a week in July when it was September 28, 2009 15. No. Initially, at least, she also had to said the unfinished design for the vising unique design incentives and unclear whether CIT would be able Copies of overcome skeptics who dismissed planned 1,250-foot tower was un- requirements to maintain the to fund its request for capital. By Average No. Single Copies Issue her as a socialite totally unsuited to worthy of the prominent spot it neighborhood’s character. For ex- August, Chief Financial Officer Each Issue Published the job. As the daughter of an heir would occupy in the New York sky- ample, developers who set aside Kim Reinle had switched factors, Extent and During Nearest to Nature of Preceding Filing to the Standard Oil fortune and line. The project had been granted space for art spaces are awarded choosing Rosen- Circulation 12 Months Date fashion plate , Ms. special permission to rise to that building bonuses. Meanwhile, thal, whose Broad- A.Total No.Copies (Net Press Run) 57,678 54,309 Burden had to fight perceptions height. banks must put most of their way office is across $5B B.(1) Paid/ that she was merely a well-con- In response, New York Times ar- branches on the second floor, thus the street from THE SIZE Requested of Rosenthal & Outside-County nected beauty, one who knocked chitecture critic Nicolai Ouroussoff freeing up street frontage for a Meryl’s headquar- Mail Subscriptions Rosenthal’s Stated on Jackie Onassis off the top spot of praised the architect as “one of the greater variety of shops. ters. loan volume Form 3541. the Best Dressed list at the tender profession’s most creative forces,” Winning political support for “When you go (Include advertisers age of 22. and warned that Ms. Burden’s deci- the Coney Island rezoning was also somewhere where proof and And then there were her mar- sion could force harmful changes to tough. Local council member you know what the story is, like exchange copies 15,033 16,181 (2) Paid In-County riages to former city councilman the rest of the tower.He also accused Domenic Recchia initially opposed Rosenthal, it alleviates a lot of Subscriptions and Vanderbilt descendant Carter her of treating the skyline as a mu- Ms. Burden’s proposal for a park headaches,” says Ms. Reinle. (Include advertiser’s Burden and to one-time Warner seum with no room for architectur- there because the land was owned by Rosenthal reacted early to retail’s proof and Communications chief executive al innovation. a developer,a childhood friend,who downward spiral, reading the tea exchange copies) 16,888 16,926 (3) Sales Through . And oh, yes, her one- Ms. Burden counters that Mr. had other uses in mind. The coun- leaves back in 2007.To get ahead, it Dealers and Carriers, Street time romantic relationship with TV Nouvel didn’t present a finished de- cilman also worried that her idea of upgraded its electronic platform— Vendors, Counter personality also kept sign,even after having years to com- charging a fee to enter the park, in- the system clients use to see their ac- Sales, and Other Non-USPS Paid her in the gossip columns. plete it, which she calls disrespect- stead of allowing people to roam count activity, track shipments and Distribution 399 416 ful. She brandishes a rendering of around and pay only for individual check for billing errors.It also added (4) Other Classes Other side of the coin Mailed Through the tower with an unfinished top— rides, would ruin Coney Island’s to its staff of nearly 200 in New York. the USPS 1 0 but underneath that gilded bag- a simple, open triangle enclosing a character. To handle growth, Rosenthal C.Total Paid and/or Requested gage was another Amanda Burden,a box that will house the building’s “That’s just not Coney island,” also plans to hire two more staffers Circulation woman who quietly started her ca- operating mechanisms. he said. this fall for its Los Angeles office. [Sum of 15b. (1), (2), (3), and (4)] 32,321 33,523 reer in urban planning in 1976 by “They wanted special permission For nearly two years, they met Since lending and offering protec- D.Free or Nominal Rate Distribution: working with William “Holly” for this?” she asks contemptuously. regularly before finally reaching a tion against a store’s inability to pay (by mail and outside mail) (1) Free or Nominal Rate White, the famous urbanologist and Mr. Nouvel didn’t return a call, compromise, which included Ms. its bills is a risky business,Rosenthal Outside-County Copies mentor to noted preservationist Jane and the developer, Hines Interests, Burden promising a new gym for a staffers are conducting more field- included on PS Form 3541 21,120 18,213 Jacobs. She went on to become the declined comment. In the past, local school, a YMCA with a pool work, which means increased visits (2) Free or Nominal Rate In-County Copies vice president of planning and de- Hines has said it needs to build to and affordable housing. to stores to log traffic and shoppers’ included on PS sign at the Au- the full height for the tower to be “She knows how to make a deal,” buying habits. Form 3541 1,638 0 (3) Free or Nominal Rate thority. economically viable. Mr. Recchia says. Copies Mailed at Other In her 40s, she went back to In frustration over Ms. Burden’s The impact of most of her rezon- The stability factor Classes Through the USPS (e.g. First-Class Mail) —0school, earning a masters in plan- outsize influence, some developers ing efforts will take years to be seen. “they’re spending a lot more time (4) Free or Nominal Rate ning from Columbia and winning have tried to circumvent her by ap- On the other hand, the looking at the product and the retail Distribution Outside the Mail (Carriers or Other an award for her thesis on the decid- pealing directly to Deputy Mayor was an instant success. Ms. Burden environment than ever before,” says Means) 309 239 edly unglitzy subject of garbage. In for Economic Development Robert was an early proponent of the ele- Mr. Jassin. E.Total Free Distribution 2001, after she’d spent more than Lieber. He sometimes agrees to a vated park and helped devise a plan Now more than ever, vendors (Sum of 15d (1),(2),(3), three decades in urban planning, meeting, but Ms. Burden is also that would allow some building need a stable factor. Retailers are or- & (4)) 23,067 18,452 F.Total Distribution Mayor Michael Bloomberg, her present. owners to construct larger-than-al- dering less inventory and ordering it (Sum of 15c and neighbor on East 79th Street, gave lowed structures in the neighbor- closer to each season to avoid over- 15e) 55,388 51,975 “Their sniping is about the short G.Copies not her the key to the city’s future as term,” says Mr. Lieber. “Amanda is hood to win their support.Today, stocking stores. To cope, manufac- distributed 2,291 2,334 H.Total (Sum of head of planning. thinking about the long term.” the once-derelict area is thronged by turers have to keep more goods in 15f, and g 57,679 54,309 “I have my dream job,” says Ms. Ms. Burden insists that policing park visitors and dotted with new their warehouse, and they need a I.Percent Paid and/or Requested Burden.“I want to create places peo- aesthetics is a crucial part of her job. shops, restaurants, residential tow- lender to help cover costs while Circulation ple walk by and fall in love with, and She also insists that she has never ers and even a hotel. waiting for a retailer’s next request. (15c / 15f x 100) 58.35% 64.50% 16.This Statement of Ownership will be printed in want to be in.” dictated design style or the hiring of Paving the way for the High Line “Retailers are trying to shift the the 10-12-09 issue of this publication. Some wish she were employed a specific architect, but she admits park is one of the proudest accom- merchandise risk back to vendors,” 17.I certify that the statements made by me above are correct and complete. elsewhere. Many New York real es- she’s not shy about criticizing plans plishments of the 65-year-old says J. Michael Stanley, a managing Jill Kaplan tate executives accuse Ms.Burden of she deems inappropriate. grandmother of five. director at Rosenthal. “They need Publisher overstepping her authority by in- “You would think they would “I just love it,”says Ms.Burden. their lender to help with that.” 

26 | Crain’s New York Business | October 12, 2009 20091012-NEWS--0027-NAT-CCI-CN_-- 10/9/2009 12:07 PM Page 1

57% of workers surveyed plan to continue working past retirement BUSINESS LIVES Source: 2009 Spherion Emerging Workforce Study HOT JOBS EXECUTIVE INBOX Anne Fisher EXECUTIVE DIRECTOR A MAN OF MANY TALONS: ORGANIZATION Henry Street Dr. Simon Starkey, an avian Settlement specialist, has a look at Rocky the parrot. An incubator JOB DESCRIPTION Provide vision and strategic direction, for young manage day-to-day operations entrepreneurs MOST IMPORTANT TASK Maintaining the highest-quality IT ISN’T EVERY STREET CRIME that programs leads to an epiphany, but Steve CREDENTIALS NEEDED Mariotti’s mugging did. Getting Background in social services, held up by a couple of teens in proven fundraising experience, 1981 motivated Mr. Mariotti, 56, and experience managing a to fold his import-export complex social services agency company and start teaching SALARY Varies with experience public school in the Bronx. RECRUITER Phillips Oppenheim “I got interested in at-risk kids,” he says. “You can make DOWNSIDE Tough fundraising environment coincides with more money running a busi- increased need for services ness than robbing people, and you don’t end up in jail. But UPSIDE Opportunity to build on nobody was talking to these kids the legacy of Henry Street in addressing the needs of a about it.” culturally diverse community Mr. Mariotti set out to change that, and in 1987 launched the The nonprofit serves nearly Network for Teaching 100,000 people a year with an Entrepreneurship annual budget of around $40 , or NFTE, million and a staff of 850 full- pronounced “nifty.” Funded in and part-time employees. large part by heavy hitters like —MIRIAM KREININ SOUCCAR Microsoft, McKinsey, the Goldman Sachs Foundation and Bank of America, NFTE has since worked with more than 280,000 EXECUTIVE MOVES young people ages 13 to 19 through its programs in 22 states PepsiCo Bottling North America: Eric J. Foss, and 12 countries. 51, was named chief On Wednesday, Oct. 7, at the executive of the new Marriott Marquis on Broadway, bottling unit, in buck ennis NFTE hosted its annual anticipation of the competition for budding early-2010 merger GOTHAM GIGS business owners, where 27 between the Pepsi finalists from 13 states Bottling Group and PepsiAmericas. He currently serves as presented their business plans to chairman and chief executive of the a panel of expert judges. The Pepsi Bottling Group. winner was Kalief Rollins, a 2009 Eaton & Van Winkle: Robert A. Rubenfeld, Vet’s up to scratch graduate of Downey High School 61, joined the law firm as partner and in California and now a freshman chair of the real estate department. He at Los Angeles Southwest comes from Todtman Nachamie Spizz mention a prickly customer, and most people will assume you’re & Johns, where he had been a partner. ‘We’re College. His business plan for TitleVest: Kathryn talking about a difficult person. When Dr. Simon Starkey uses the Phree Kountry Clothing, which Colson, 37, joined the responsible term, it’s literal. ¶ “I get cut or scratched every day,” says the 31-year- sells custom T-shirts, garnered title insurance firm as old vet for The Center for Avian and Exotic Medicine, the only clinic him a $10,000 prize. a managing director of for a lot of Finalist Angie Ocampo, 16, a business development. in the city dedicated to exotic animals. ¶ Turtles and guinea pigs are graduate of NFTE’s summer She was formerly an unusual typical patients, but pet hedgehogs, bald eagles and 8-foot pythons associate at Greenberg business camp, started a Traurig. have also made appearances. ¶ “We’re responsible for a lot of unusual company in White Plains called Rocket Fuel Inc.: subway subway traffic,” Dr. Starkey says. “I never know what’s coming in the Step by Step Tutoring to help Calton Chan, 36, was named vice door.” ¶ Growing up in Australia, he caught lizards in the backyard English-speaking students learn president of sales at the online ad traffic’ Spanish. Though she didn’t win, network. He was most recently vice and kept birds. But since moving here last year, Dr. Starkey hasn’t had she had come up with a sensible president of sales at interCLICK. pets: He’s too busy treating hamsters with heart failure and performing plan for the prize money. “First, JS2 Communications: Alissa Pinck, 33, was promoted to senior vice president surgery on pigeons. ¶ Birds are his specialty. ¶ “You’re working on I’d put it in the bank,” she says. and will continue in her role as general bones the size of chopsticks, and they’re hollow!” he marvels. ¶ Last “Then I’d use some of it to manager at the public relations and expand the business, and save marketing consulting agency. She was month, he tried to resuscitate an unconscious owl. He’s treated hawks the rest for college.” formerly vice president. big enough to bite off a finger.There are about 20 more-common Foley & Lardner: Douglas Spelfogel, 45, species of avian pets, and he knows them all. ¶ “There’s obviously a WHO FIRST ENCOURAGED joined the law firm as a partner and you to start your business or to pursue head of the bankruptcy and business big difference between a parakeet and a cockatoo,” he says. Obviously. a business career? Tell us at See EXECUTIVE MOVES on Page 29 —hilary potkewitz www.crainsnewyork.com/execinbox.

October 12, 2009 | Crain’s New York Business | 27 20091012-NEWS--0028-NAT-CCI-CN_-- 10/8/2009 8:54 PM Page 1

RÉSUMÉ REVIEW Gathering rock’s A-listers Is your job search all it could be? We ask the experts. King of pop culture A year ago, I went to both and ers of rock and roll and to their own NAME MINDY R. KAPLAN Bruce and asked if they’d each head- greatest influences. So you’ll have OBJECTIVE celebrates Hall of line one night. They said they’d be Eric Clapton and Van Morrison; To use my skills and “can-do” attitude to add delighted and worked it into their they’ll sing some old blues stuff to- value to an organization Fame’s 25th in style schedules,and then we went around gether. Jeff Beck will join with Eric, PROFESSIONAL EXPERIENCE and built from there.We wanted the and they’ll play two or three songs. best people available in their Everything has got something deli-  David Landau & Associates, Fairfield, BY MATTHEW FLAMM genre. This inevitably cious and unexpected, something N.J., 2005-2009; senior audit manager leads you to Eric Clap- you’re never going to see again. Managed Sarbanes-Oxley compliance and internal audit engagements. ann wenner, founder of icon- ton, to Stevie Wonder.  Independent contractor, 2003-2005 ic pop culture title , If you want female vo- There’s often controversy over the Designed claims-management training program for AIG, saving the has seen many great musical acts calists, it inevitably choices for induction into the company more than $2M annually. over the years. But the chair of leads you to Aretha. For Hall of Fame. Do you agree with  TIAA-CREF, 1991-2003; project mgr., internal management consultant Jthe Rock and Roll Hall ofFame a more current kind of all the voters’ selections? Streamlined process for licensing /registering insurance agents and reps. Foundation says the concerts rock: Metallica. For an I don’t agree with 100%, but I Led project resulting in customer retention and increased sales of $4M. marking the Hall of Fame’s 25th an- older, more classic kind agree with 90% or 95%.There EDUCATION niversary will be once-in-a-lifetime of rock: Crosby, Stills are no absolute rules in events. The & Nash. this kind of thing.  New York University, Stern School of Business, B.S. and M.B.A. Oct. 29 and Taste is a big factor.  Certified internal auditor certification in progress 30 fundraisers There will also Résumé appears in condensed form. at Madison be some Music magazines EXPERT ADVICE MOVERS & lessons in have taken a Square Gar- The financial crisis has created steady demand for positions in accounting SHAKERS rock history. beating lately. den will unite controls and compliance. Use new certifications as a reason to update your Bruce Spring- How will How is Rolling online profile and reconnect with colleagues. Show hiring managers the due steen, U2, Si- that work? Stone doing? Jann diligence you would bring to a job by learning everything you can about their mon & Gar- Everybody We have circula- Wenner funkel, Aretha is bringing tion of a million and firms. Find recruiters who specialize in placing people with SOX expertise. Franklin and along two a half [copies] every —ware sykes, director of career services, TheLadders.com others. or three two weeks. It’s huge. To contact this candidate or to be featured in “Résumé Review,” e-mail us guests to The ad climate has at [email protected]. How did you get the busiest people in pay tribute to been bad,but the read- rock to coordinate their schedules? some of the found- ers are still there. 

“McKool Smith is on quite a roll, folks.” The AmLaw Litigation Daily

28 | Crain’s New York Business | October 12, 2009 20091012-NEWS--0029-NAT-CCI-CN_-- 10/9/2009 1:17 PM Page 1

CORPORATE LADDER EXECUTIVE MOVES admissions. She was formerly associate Square Garden Sports. He previously dean of the MBA program at the served as director of team marketing and ARCHITECT BUILDS ON SUCCESSFUL CAREER University of Illinois, Urbana- business operations for the NBA. Carl Galioto Continued from Page 27 Champaign. ORT America Inc.: Alan , 55, was named senior principal and member of the New York reorganization practice. He was most UGL Equis Corp.: John Pavone, 34, was Edward Klugman, 53, management committee at HOK, a leading architecture and design firm. He recently at Baker & Hostetler, where he named vice president at the commercial joined the educational was most recently at Skidmore Owings & Merrill, where he was a partner and head of the bankruptcy real estate firm. He joins UGL from CB and training was the partner responsible for the technical group in and creditors’ rights practice. Richard Ellis Inc., where he had been organization as New York and Washington, D.C. Throughout his career, Razorfish: Ray Velez, vice president. national executive Mr. Galioto has worked on notable projects around Stroock & Stroock & Lavan: 39, was promoted to Jon R. Mostel, director. He was most the world, such as 1 World Trade Center, Memorial chief technology 62, was named partner. He was most recently executive vice officer, a newly created recently a partner at Dewey & LeBoeuf. president at the Jewish Sloan-Kettering’s Mortimer B. Zuckerman Research position. He was most Center for New York City Neighborhoods: Federation of Palm Springs and Desert Center and the Lotte Super Tower in Seoul, South Korea. recently vice president Jonathan Mintz, 45, was appointed to Area. In his new position, he will be responsible for HOK’s of technology. the board. He continues as the Big Tent Entertainment: Amy Jarashow, buildingSMART initiative, a program that improves the way 2ergo: John Orlando, commissioner of the Department of 38, joined as director of brand projects are delivered to clients. Mr. Galioto will also 43, was named Consumer Affairs. development. She was most recently vice chair the firm’s project delivery board. managing director of the Americas at Madison Square Garden: Mark Foxton, president of strategic partnerships at the telecommunications firm. He was 43, was named vice president of eTAGZ. —MAIA BLUME formerly chief marketing officer at marketing partnerships for Madison —maia blume Livewire Mobile. Cooper Square Realty Inc.: Terry Moreland, 50, was named executive director of operations at FS Energy, a wholly owned subsidiary that specializes in energy management. He was formerly director of operations for Cooper Square’s conservation services group. Warner Music Group Corp.: Chris Ancliff, 44, was appointed general counsel, international, a newly created position. He was most recently general counsel at EMI Group. Gersten Savage: Jason Lief, 42, joined the law firm as a partner and will co-chair the intellectual property practice. He was most recently a partner at McDermott Will & Emery. Sundance Channel: Shari Weisenberg, 41, was appointed senior vice president of marketing. She was formerly vice president of strategic marketing at SyFy. Advisors Asset Management Inc.: Philip Villaluz, 40, joined as managing director of institutional sales and head of municipal strategy. He was most recently an institutional research analyst, municipals, at Merrill Lynch. The RADCO Cos.: Thomas P.Nolan, 48, joined the real estate development firm as managing director of new business development. He was most recently senior vice president and head of business development at Kimco Realty. Stantec Inc.: Gary Touryan, 61, was named executive director of transit and rail systems at the architecture and design firm. He was most recently senior vice president at Halcrow. Winston & Strawn: Glynna K. Christian, 40, joined the law firm as partner and chair of the sourcing practice. She was most recently a partner at Dewey & LeBoeuf. Savills: David Monahan, 36, joined the real estate investment banking firm as senior vice president. He previously served as a managing director of DTZ Rockwood. Sinvin Realty: Steve Rappaport, 62, was promoted to managing director at the real estate advisory firm. He had been senior director. Reed Smith: Clay J. Pierce, 41, joined the law firm as a partner in the financial industry group. He was most recently a partner at Patterson Belknap Webb & Tyler. Capco: Diane Schueneman, 57, was elected to the board of directors at the integrated consulting, technology and transformation services provider. She was formerly senior vice president and head of the global infrastructure solutions group at Merrill Lynch. Columbia Business School: Mary Miller, 59, joined as assistant dean of EXECUTIVE PROMOTIONS The fastest way to get an announcement into Crain’s is to submit details online. Fill out the form at www.crainsnewyork.com/submit. The Executive Moves column is also available online.

October 12, 2009 | Crain’s New York Business | 29 20091012-NEWS--0030-NAT-CCI-CN_-- 10/9/2009 6:12 PM Page 1

OFFICE VACANCY RATES HIT A FIVE-YEAR HIGH of 11.1% in the third THE quarter, according to Cushman & Wakefield Inc., whose brass warned the rate would climb to 13% or 14% next year. Some of the deals getting done sound increasingly desperate: HSBC Bank USA agreed to sell, then lease WEEK back, its headquarters at 452 Fifth Ave. for $330 million cash. On the residential side, Brooklyn apartment tower Oro slashed its prices by 25% ON THE to spur sales. And apartment leasing citywide plunged 58.9% in the third quarter from the year-earlier level, while median rents dropped 7.7%, reports Prudential Douglas Elliman and Miller Samuel Inc. FILM WEB INDUSTRY INSIDERS SCREAMED “CUT!” after city bureaucrats proposed charging TV, movie and commercial makers $3,200 per day to use public OCT. 5-11 buildings as shooting locations. It would be the highest such fee in the country.The city currently charges nothing for its hospitality. CRAINSNEWYORK.COM DEPARTMENT OF RATHER UNFORTUNATE TIMING: Fashion house Ellen Tracy inked an exclusive sales deal with Macy’s Inc.—just hours before creditors forced Ellen Tracy’s into Chapter 7 bankruptcy. BANK OF AMERICA CORP. IS BULLISH on touting Merrill Lynch, despite the many Details slips noose at Condé legal and political controversies over its shotgun acquisition of Merrill’s housands of metrosexuals can breathe a sigh of relief: Details magazine is still in thundering herd of brokers. The bank plans to spend $20 million to revive the Merrill name—and its famous bull logo—with the Merrill Lynch business. It just won’t have a publisher. Wealth Management brand. T The edgy men’s fashion bible had long been rumored to be on the short list of Condé —elisabeth butler cordova Nast magazines destined for the guillotine once the troubled publishing giant got around to cutting costs. But amid the carnage last week that put an end to beloved culinary title Gourmet, upscale parenting magazine Cookie and the apparently redundant Modern HOORAY OY VEY Bride and Elegant Bride, the only head to roll at Details was that of its The first round of swine flu vaccines publisher, Steven DeLuca. hits the city. Even better: Some His name can be added to those of approximately 180 other people who experts say the lost their jobs last week at Condé Nast, which is down about 8,000 ad pages epidemic may not be as bad here as A taxi driver and a pedicab driver got into through October, according to Media Industry Newsletter. was feared. a knock-down-drag-out in Times Square, Condé Nast Publishing Director William Wackerman, who oversees tastefully captured on video for all to see. Glamour and surviving bridal title Brides, will now also supervise the men’s mag. SUBMIT YOUR OWN #CRAINSHOORAY OR #CRAINSOYVEY ON TWITTER! —matthew flamm

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30 | Crain’s New York Business | October 12, 2009 20091012-NEWS--0031-NAT-CCI-CN_-- 10/9/2009 12:08 PM Page 1 chemex / INSATIABLE CRITIC [email protected] for more details. flickr.com Gael Greene THE WEDNESDAY, OCTOBER 21 THE REAL ESTATE BOARD OF NEW YORK will hold the 21st Residential Deal of WEEK the Year Awards and Charity Gala from 6:30 p.m. to 10 p.m. at 230 Fifth Ave. Tickets are $275 for individuals and Chef still finding $2,500 for a set of 10. Contact AHEAD (212) 532-3100 or [email protected]. OCT. 19-25 THURSDAY, OCTOBER 22 her way uptown Learn how to start a green business with GREEN BOROUGHS from 4 p.m. to 6 p.m. FORUMS at the Support Center for Nonprofit Tasty Italian offset by THURSDAY, OCTOBER 22 Management, 305 Seventh Ave., 11th- MIT ENTERPRISE FORUM OF NYC will host floor conference room. Fees are $35 for WHAT SHE’S overthought menu, an event on capitalizing on the growth early registration and $39 for general in emerging markets from 6 p.m. to registration. Contact (718) 530-5074 or WEARING low ‘cool’ factor 9 p.m. at Holland & Knight, 195 [email protected] for further details. Broadway, 24th floor. The event is free AMY SMILOVIC, founder and head alking the bou- for members; nonmembers pay $50 in CULTURAL EVENTS designer of women’s contemporary tique gauntlet on advance and $10 extra at the door. Call WEDNESDAY, OCTOBER 21 clothing company Tibi, has her fall (718) 222-3339 or e-mail events@ Celebrate the GUGGENHEIM Time Warner Pick and winter wardrobe all set. She’s mitef-nyc.org for further information. MUSEUM’s 50th anniversary of the Center’s third with free admission all day begun wearing menswear items with floor to the new INFORMATION SESSIONS long, from 10 a.m. to week feminine touches, like a tailored seedling A Voce Columbus. First WEDNESDAY, OCTOBER 21 W buck ennis 5:45 p.m. See the current jacket with a ruffle down the side, shock: I miss the mauve-and-choc- PRIMO PASTA: Spaghetti alla chitarra Head to NYC BUSINESS SOLUTIONS’ Kandinsky retrospective and a or a men’s plaid pant with a cuff at olate leather Viennoiserie of Café financing fair to meet with small business documentary on the history of the the bottom. This season, she’s also Gray, which preceded it. Now the lenders from 10 a.m. to 1 p.m. at 9 Bond museum, and enjoy family activities. In St., fifth floor, Brooklyn.The event is free, addition, Anish Kapoor: Memory, wearing smoky and blurred prints. bar is open and more Las Vegas than A VOCE Ms. Smilovic’s feet are clad in 10 Columbus Circle, third floor but preregistration is required. Call featuring a 24-ton sculptural installation Vienna. You tumble in, and there short boots or open-toed sandals you are. A discreet slit in a bare wall (212) 823-2523 (718) 875-3400, ext. 5, or e-mail by the artist, opens today and continues www.avocerestaurant.com [email protected]. through March 28, 2010. The museum with wider straps to offset bright or looks into the kitchen: lots of steam, is located at 1071 Fifth Ave. For more neutral tights. She’s keeping molto action. PROGRAMS & WORKSHOPS information, call (212) 423-3500 or visit jewelry to a minimum. Now on double duty here and at TUESDAY, OCTOBER 20 www.guggenheim.org. The apparel exec favors navy, A Voce on Madison Avenue, chef CUISINE Italianate Join the New York Chapter of THE Missy Robbins stakes her claim to COUNSELORS OF REAL ESTATE along with SATURDAY, OCTOBER 24 gray and black these days, with PRICE RANGE this turf with a bold prelude: fat Entrées $22-$38 NEW YORK WOMEN EXECUTIVES IN REAL REKINDLE HOPE IN AFRICA will sponsor a bright yellows and purples mixed slices of focaccia slicked with oil and SERVING Lunch weekdays, dinner ESTATE for a lunch on managing and charity event featuring renowned artists in. “It’s kind of an ’80s palette, but a small saucer of heavenly ricotta, seven days, brunch weekends refinancing a $20 billion global real from around the world. The concert the prints are so mysterious, they estate portfolio in a credit-starved green-olive-oil-glossed, with black begins at 8 p.m. at Avery Fisher Hall, calm things down to be more wear- RESERVATIONS Yes market. The lunch will take place from 10 Lincoln Center Plaza. Ticket prices able and chic,” she says. “You don’t pepper and fiery orange veins of 12 p.m. to 2 p.m. at the Association of range from $35 to $500. Contact crushed pepperoncini. I can’t get NOISE LEVEL Tolerable the Bar of the City of New York, (212) 500-5953, ext. 118, or want to look like Cyndi Lauper.” enough of that cheese. Once I slow —ADRIANNE PASQUARELLI I can’t wait to return. 42 W. 44th St., and the fee is $80. Call [email protected]. down to consider that the cakey loaf (646) 265-5619 or e-mail —maia blume is unworthy of its sublime smear,I’m I will definitely go back. eating the ricotta with a spoon. I’ll let them simmer awhile. It’s our second visit this week,but NO HATS Never again. it was love at first bite with that cheese.We’d sat at a tiny two-top on a jumping Friday night and loved ed stone fruit is not quite roasted. most of what we ate. Properly firm Still, I’m getting a sense of Rob- spaghetti alla chitarra with crab, bins’ signature. I only tasted her leeks and sea urchin butter. Chili- food once at A Voce downtown, touched spaghetti tossed with octo- where she waded cheerfully into the pus and bread crumbs. And mar- task of winning over Andrew Car- velous chicken cooked under a mellini fans in shock over his abrupt brick, with the tang of lemon and walkout. His new digs, Locanda wilted Tuscan greens. Verde,won a Michelin star last week. Granted, I might have liked Five years at Chicago’s top-rated more uni funk in that pasta, and I Spiaggia and youthful knocking wasn’t moved by a few grilled cala- around Italy’s kitchens has fired her mari with thin tongues of zucchini passion for simplicity and product. and Calabrian chili vinaigrette (a But I feel something gets lost in too looker but not a taste thrill). much thought and gentrification.As Now we’re back on a quiet Mon- tonight,in exquisitely slivered sardine day with a food-world friend. Mar- filets (a sardine and a half ) on cap- velous escarole salad with its burst of onata with dried tomato powder and poached egg and warm pancetta orange dust,and razor clams layered vinaigrette has her exulting. Bottar- with Sardinian couscous with too ga salts the silkiness of ricotta gnoc- subtle a hint of Calabrian chili paste. chi with small zucchini rounds and It’s not fair,I suppose,to compare squash blossoms.And grilled lemon A Voce with Locanda Verde. Car- gives remarkable flavor to a hulking mellini has hits and misses, too. But pork chop, carefully cooked and a major league team of partners with feathered with arugula. slavish followers and TriBeCa cool Chef Robbins stops by, bringing has drawn hordes. There is nothing irresistible curls of sticky dolce di cool about the third floor of the carnevale pastry as a sweet farewell Time Warner Center, and A Voce to let us know she realizes “we’ve still prices are higher. got a lot of work here.” So all depends on Missy Robbins She’s right. Orecchiette with and the power of the A Voce team’s roasted pork jowl,soffrito and arugula Rolodex. I’ll give her time to get her would be more impressive if the pas- troops in sync, but maybe she also ta were not so tough. An excess of needs to kick it up a little herself. late-summer heirloom tomato sauce on stracci (pasta “rags”) is neither Copyright © 2009 by Gael Greene. sweet enough nor tart enough.Roast- Syndicated by www.insatiable-critic.com.

October 12, 2009 | Crain’s New York Business | 31 Project1 10/6/09 11:42 AM Page 1

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