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INSIDE REPORT TOP STORIES SMALL BUSINESS Believe it or not, Charities’ creative bank credit is marketing boosts flowing again year-end donations ® PAGE 15 PAGE 2 Let the Great Fro-Yo Shakeout begin VOL. XXVII, NO. 2 WWW.CRAINSNEWYORK.COM JANUARY 10-16, 2011 PRICE: $3.00 PAGE 2 AWORKERS’COMP SCANDAL

“We joined it because my insur- one injured worker and one claim, After an alleged fraud, state sticks businesses ance broker at the time said it would for $2,136. He canceled his insur- with $600 million tab. Crain’s investigates be a lot more economical for us,” ance with CRM and didn’t give the said Mr. Teich, president of M&T company another thought until last It’s cool again to be required to carry should any of his Plumbing & Heating Co. “Had I year, when he learned that the state a venture capitalist BY JEREMY SMERD 25 employees get injured on the job. known then what I know now, I was accusing its executives of fraud. His broker mentioned Poughkeep- never would have gotten involved.” In a lawsuit, the state alleged in New York City MARK TEICH, who runs a plumbing sie-based Compensation Risk Man- Over nearly three years, begin- that CRM executives enticed new PAGE 3 company near Union Square that agers, which administered insur- ning in 2002, Mr. Teich paid more business to maximize their man- his father started 65 years ago, ance trusts catering to New York than $147,000 in premiums to agement fees even at the expense of Real estate brokers wanted to save money on the work- small businesses. CRM offered CRM. But he was dissatisfied with the trusts they were hired to safe- line up to take it all ers’ compensation insurance he is cheap premiums. the value he was getting:He had only See WORKERS’ COMP on Page 24 PAGE 3 Food trucks find THE BATTLE LOOKING AHEAD: permanent parking Gov. Andrew Cuomo NEW YORK, NEW YORK, P. 6 must win over not just Biz fills legislators but also a $10M special interests. war chest Cuomo asked, CEOs answered with push BUSINESS LIVES to foil any union blitz BY DANIEL MASSEY GOTHAM GIGS You could say he scored A COALITION OF BUSINESS leaders with this job P .. 25 encouraged by Gov. Andrew Cuo- ● ANNE FISHER mo to help counter labor opposi- assesses when to tion to his cost-cutting agenda compromise P .. 25 with its own campaign has reached its initial fundraising goal of $10 ● MOVERS & SHAKERS million, powered largely by the A TV matchmaker’s city’s real estate industry. take on New York P .. 26 Donors to the Committee to ● GAEL GREENE gets Save New York include Tishman hooked on Fish Tag P .. 27 Speyer Properties, which pledged $1 million; The Durst Organiza- newscom tion, which wrote a six-figure check; and developer Larry Silver- THE CHALLENGE INDEX stein, who contributed an undis- closed amount. IN THE MARKETS ______4 That Mr. Cuomo personally THE INSIDER ______8 called for the group to coalesce OPINION ______11 around his push to overhaul spend- Gov. of Reinvention ing is sparking much of the enthu- REAL ESTATE DEALS PLUS ______12 siasm, supporters say. The group NEIGHBORHOOD JOURNAL ______13 now seeks millions more. FOR THE RECORD ______14 “Everybody wants to get to- The new chief has ambitious plans, but his CLASSIFIEDS ______20 gether to promote the reform EXECUTIVE MOVES ______25 agenda of Gov.Cuomo,”said Ken- agenda clashes with legislators’ interests See BIZ on Page 22 THE WEEK AHEAD ______27

store Albany’s once-proud reputation. BY ERIK ENGQUIST As New Year’s resolutions go, this one is ambi- tious. It depends on the very legislators who have GOV. ANDREW CUOMO has a vision: Motivated by a perpetuated the offending culture for years to sud- massive budget deficit and public disgust with state denly transform it. ELECTRONIC EDITION government, New York’s fractious political estab- “Change in Albany is like a new diet,”said Dem- lishment comes together to achieve fundamental ocratic consultant Basil Smikle Jr.“It works well for reforms that revitalize New York’s economy and re- See CUOMO on Page 22 NEWSPAPER 20110110-NEWS--0002,0003-NAT-CCI-CN_-- 1/7/2011 8:33 PM Page 1

COSTAR GROUP INC. IS COMPILING DATA ON THE LARGEST OFFICE LEASING DEALS IN Manhattan and the largest NYC office Frozen yogurt meltdown leasing deals outside Manhattan during 2010, ranked by square footage.The two lists of top transactions will be published in Crain’s Feb. 14 issue. Brokers and others with details on High rents on big spaces STAYING HOT COOLING OFF deals that may qualify for these lists should and an oversaturation call Marcie Wallis at (866) 398-9381 or e-mail [email protected] by Friday, Jan. 21. of the NY market are forcing shops to close

IN BRIEF BY ADRIANNE PASQUARELLI

ATLANTIS HEALTH PLAN HAS AVERTED INSOL- AFTER THREE YEARS of explosive growth, a VENCY AND CLOSURE BY NEW YORK STATE in- frozen yogurt retail shakeout has begun in surance regulators. The company completed a the Big Apple. recapitalization last week with a $16 million in- In the last 12 months,global chains Red vestment from Dr. Kiran Patel, a cardiologist Mango and Yogurberry, as well as local who founded WellCare, a managed care plan in purveyors Yolato and Peaches Natural Yo- New York and Florida. Atlantis insures about gurt Cafe, have shuttered one or more 28,000 members. stores. Food experts say more closures are expected as shops contend with high rents, MANHATTAN-BASED TRANSPORTATION CON- excessive space and a general oversatura- PINKBERRY RED MANGO USA SULTING COMPANY SAM SCHWARTZ Engineer- tion of the New York frozen treat market. HEADQUARTERS Los Angeles HEADQUARTERS Dallas ing has acquired Metro Transportation Group, a Los Angeles-based Pinkberry, which was 15-person traffic engineering, planning, design the first to enter the Big Apple, appears to MANHATTAN OUTPOSTS 14 MANHATTAN OUTPOSTS 3 and signal systems company based in Chicago. be the biggest victor, with 14 stores in CLOSED MANHATTAN OUTPOSTS 0 CLOSED MANHATTAN OUTPOSTS 4 The deal, the terms of which were not disclosed, Manhattan alone. will bring total head count to about 100. Ⅲ Red Mango, a Korean company that STRATEGY Keeping full-service STRATEGY Moving toward self-serve had formulated a recipe for healthy fro-yo stores outposts long before Pinkberry’s ascendance, chal- Sources: Company data, real estate brokers BY THE NUMBERS lenged the front-runner in New York and has come out on the losing end. It recent- Weekly shift of the city’s economy ly shuttered four Manhattan stores and well. Frozen yogurt production in the U.S. jumped on the bandwagon.These shops all plans to switch to a self-serve model that fell more than 5% in 2009 versus a year ear- paid premium rents for choice spaces rang- MUTED START The dollar rose, the S&P briefly touched 2-year highs and joblessness eased to can exist in partner locations like gyms. lier, to 74.4 million gallons, according to ing in size from 500 square feet to 1,200 9.7%. But gains in the ranks of those working Currently, it claims just two freestanding the U.S. Department of Agriculture. By square feet, mere months before the bot- were far below economists’ predictions. locations in Manhattan, as well as one comparison, ice cream production was tom fell out of the economy and the reces- within the NBC Experience shop. down only 1.1% for the same period. Dur- sion took hold. As a result of such high $2.23M +1.3% $1.56B “Generally speaking, [frozen yogurt] is ing 2010, frozen yogurt production costs, along with diminished consumer in- WICKED ticket RISE in area VALUE of a product people like,but the economic re- dropped even further—November saw terest, several purveyors had to break their sales for the week consumer price construction alities don’t make sense,” said Andrew only 4 million gallons produced, a 13.7% leases and downsize. ended Jan. 2, a index in Nov. from starts in NY area Moger,chief executive of restaurant devel- plummet from November 2009. “It’s $6.85 or $7.24 for a paper cup full B’way record a year earlier in Nov., down 4% opment firm BCD. “When your peak As recently as 2007, the height of the of frozen yogurt—I don’t think so!” said Source: The Source: Bureau of from a year earlier business is eight months a year, your busi- real estate market,Manhattan was just get- restaurant consultant Clark Wolf, noting Broadway League Labor Statistics Source: McGraw-Hill Construction ness is mainly dinner and evening, and ting a taste of frozen treats. Pinkberry and that the prices at such shops could have you’re paying the highest retail rents, the Red Mango, whose U.S. arm is based in contributed to their early demise. RISING TIDE Growth in imports on the docks of the port of economics just don’t bear out.” Dallas, scooped up locations, while small- Last year, Berrywild closed a location NY and NJ is off last spring’s peaks but still rising. Nationally,the fro-yo trend is waning as er chains such as Berrywild and Yolato See FRO-YO on Page 23 Donations revive as charities’ c

far exceeded expectations. Many charities Some groups break raised more than they did during the 2009 Source: The Port Authority of NY & NJ records in surprising appeal, and some groups broke records. Money raised in the period often accounts ADDICTED TO NUMBERS? season, but cuts in GET A DAILY DOSE AT @STATSANDTHECITY for at least a quarter of annual funding. government aid loom A poll of 181 nonprofits nationwide CORRECTIONS AND CLARIFICATIONS conducted in December by the Chronicle of Philanthropy found that donations were up While exploring different merger combinations with Yahoo, AOL BY MIRIAM KREININ SOUCCAR from the 2009 period for more than half of never put an offer in front of its rival. The extent of AOL’s activities was not made clear in the Dec. 13 story “Yahoo linkup off, AOL the groups. One in five said that total tries a do-it-yourself reinvention.” BILLBOARDS SPLASHED around Manhattan fundraising had increased by at least 20%. David Hahn is the managing director of Planned TV Arts. His told the story of donors to City Harvest name was misstated in the Dec. 13 “Executive Inbox.” and what had been accomplished with Working hard for the money IN NEW YORK Christopher L. Picone, president and general counsel at Buccino their gifts, even small ones. The ads fea- , success stories came from a & Associates, is 54; his age was misstated in the Dec. 13 tured captions such as “Eric changed the variety of groups with different missions. “Executive Moves” column. tires on one of our trucks.” American Friends of the Hebrew Univer- The name of Zulema Wiscovitch, executive director of the The attempt to make philanthropy sity raised $6.6 million during the last National Supermarket Association, was misspelled in a Jan. 3 more immediate and tangible had aston- quarter of 2010, compared with $5 million “Executive Moves” item. ishing results for the local charity, which in the year-earlier period. The Population Justin Breen, who was appointed partner at Proskauer Rose, is picks up excess food from restaurants and Council,started by John D.Rockefeller III new to the firm. His tenure with the firm was misstated in a Jan. markets, and delivers it to soup kitchens. to promote reproductive health in the de- 3 “Executive Moves” listing. City Harvest set a record in December, veloping world, increased its funding vol. xxvii, no. 2, january 10, 2011—Crain’s New York Business (issn raising $4.5 million,$300,000 more than a VALUE-ADDED: City Harvest ads showed active and 144% last year from 2009 and passed the 8756-789x) is published weekly, except for double issues the weeks of potential donors exactly what contributions buy. July Fourth, Labor Day and Christmas, by Crain Communications year earlier. $1 million mark for the first time. Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at “These numbers are beating out what “You can raise money in this climate,” New York, N.Y., and additional mailing offices. Postmaster: Send we did prerecession,” said Excecutive Di- leader in New York reporting a banner hol- said Kim Gerstman, associate director of address changes to: Crain’s New York Business, Circulation Depart- ment, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber rector Jilly Stephens. “New Yorkers are re- iday season. After two dismal years, many development at the Population Council. service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 sponding to the very basic fact that many local organizations said fundraising finally “You just really have to work hard and one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2011 by Crain Communications Inc. of their neighbors are struggling to put rebounded. Despite continued economic communicate frequently with prospective All rights reserved. food on their table.” uncertainty, many year-end appeals—typ- donors.” Ms. Stephens isn’t the only nonprofit ically done in November and December— Charities still have challenges. For ex-

2 | Crain’s New York Business | January 10, 2011 20110110-NEWS--0002,0003-NAT-CCI-CN_-- 1/7/2011 8:34 PM Page 2 NY tech’s call: Veni, vidi, VC Venture capital firms here haven’t had it so good since the dot-com era

be there and will he buy drinks or BY AARON ELSTEIN will people be buying him drinks :),” warbled a likely attendee on the ON WEDNESDAY evening, about 40 website publicizing the fete, which stargazers will flock to the Soho is a gathering for people who regu- Grand Bar & Lounge for a celebri- larly read Mr. Wilson’s blog, called ty sighting. A VC. Will they rub shoulders with Not since the technology bubble Hollywood royalty? A supermodel? went bust a decade ago, has it been Quite possibly, but so hip to be a ven- the person the ture capitalist. Just crowd most wants The chase is last week, VC- to see is one of the backed Facebook godfathers of New making some raised $450 million York’s venture capi- from its new friend, investors MR. NYVC: Fred Wilson tal scene, Fred Wil- Goldman Sachs, in of Union Square son. The 49-year- ‘crazy,’ warns a deal that values the Ventures is an early old investor is an social networking backer of star startups early backer of Fred Wilson supernova at $50 Foursquare, Tumblr many of techdom’s billion, and the and Twitter. hottest companies, business-network- including Four- ing site LinkedIn

square, Tumblr, strongly hinted that redux Zynga and Twitter—where 126,000 it would soon hold an initial public people follow his frequent tweets. offering. Across the city, VC firms Venture Capital Association. VC firms, Accenture and big Wall crop of hot IPOs. He’s also finalizing a $200 million are raising hundreds of millions— “There’s been just a flurry of ac- Street banks to launch an “innova- All the action is driven by one investment fund, the largest ever for one New York shop,Raine Partners, tivity,” marveled Maria Gotsch, tion lab.”The project aims to devel- simple fact: In good times, nothing his Manhattan-based firm, Union launched a $300 million fund in the chief executive of the New York op the next generation of financial offers more bang for the buck than Square Ventures. fall, the largest new fund in the City Investment Fund, which last services and technology compa- venture capital. During the 1990s “Do you think Mr. Wilson will country, according to the National month teamed up with half a dozen nies—and just maybe seed the next See TECH’S CALL on Page 23 s’ campaigns get creative New real estate firms share wealth ample,according to the Chronicle of children,has had to borrow from its Rockefeller Center,which featured Philanthropy, the number of multi- endowment to make up for more nonstop entertainment, brought in million-dollar gifts fell for the sec- than $1 million in government cuts $5,000. Additionally, the high-en- But will stars part with big-brokerage perks? ond straight year in 2010, and only sustained over the past 18 months. ergy performers ended up on six individual gifts of $100 million The Foundling has historically re- YouTube, which boosted the non- “It is the right time to make an or more were announced. That is a ceived 95% of its annual budget, profit’s hipness quotient. BY AMANDA FUNG offer to brokers that is too good to significant drop from now $100 million, from The Salvation Army said year- pass up,” said Kevin Kurland, BIG BUCKS 2008, when 15 such gifts such aid, and executives end donations were up 3% from the REAL ESTATE BROKER Douglas Hed- founder of Spire Group Inc., which were made. fear more cuts loom. 2009 period but added that they dings did something radical last launched Jan. 1 and allows brokers Many groups are also “We’ve been able to have not returned to prerecession summer.He started his own firm us- to keep 100% of their commission in grappling with major cuts 6 dip into the endowment levels. ing a drastically different business return for a monthly fee of $495. in government funding. to save programs, but we Primary Stages,a nonprofit off- model, one that not only pays bro- “Our model is so appealing we are Those reductions could DONORS making can only do that for so Broadway theater company, also kers higher commissions but also a going to grow exponentially.” in turn force them to gifts of $100M or long,” said CEO Bill devised a unique approach. Rather share of the profits.So far,so eliminate services. more in 2010, Baccaglini. “This year, than request a general donation good. 100% Similar ambitions “Government sources, vs. 15 in 2008 we will have to critically from patrons, the group asked “I get e-mails or phone A GROWING NUMBER hope to especially at the state lev- examine all the business- them to help meet a specific need: calls daily from people who COMMISSION do the same. To achieve el, are drying up faster es we’re in.” $50,000 to cover the cost of the set want to work for me,” said brokers at Spire that, they are looking to Group keep in than you can imagine,” In an attempt to com- for its upcoming premiere of A.R. Mr. Heddings.“The profit I return for fee of snag talent from major bro- said Doug White, academic direc- pensate, charities found more cre- Gurney’s new comedy, Black Tie. have seen is a multiple of $495 a month kerages by promising bigger tor of the Heyman Center for Phil- ative methods to raise funds from Primary Stages raised more what I was making at Pru- paydays. Among the new anthropy and Fundraising at New individual donors. than $45,000, 150% more than its dential Douglas Elliman, and I am firms are Level Group, which start- York University. “The charities are previous year-end appeal record in sharing it with my agents.” ed up in June, and Charles Ruten- being hung out to dry.” Breakout success 2008. Heddings Property Group is berg Realty. The average individual gift to INSTEAD OF JUST using standard “I wanted to find a way that part of a new wave of residential bro- Charles Rutenberg has attracted The New York Foundling grew by bell-ringers, the Salvation Army might appeal to our core con- kerage firms that are taking advan- 400 brokers since opening in 2007. 23%, and it expects to bring in Greater New York Division hired stituents in a more personal way,” tage of a rule change last year that al- Before going on his own, Mr. Hed- about $134,000 from its year-end professional singers and dancers to said Managing Director Elliot Fox. lows all city listings to be available to dings was one of Charles Ruten- appeal, slightly more than it did man the collection kettles at its “People responded in bigger ways all brokers online. Sales and rental berg’s first big recruits. Charles two years ago. But the 140-year- busiest sites. The staid organiza- than we ever imagined they are picking up again, and brokers Rutenberg and Level both offer old charity, which supports foster tion’s 24-hour “kettle marathon” at would.” want more of that action. See REAL ESTATE on Page 4

January 10, 2011 | Crain’s New York Business | 3 20110110-NEWS--0004-NAT-CCI-CN_-- 1/7/2011 8:35 PM Page 1

Real estate firms share the cash IN THE MARKETS Continued from Page 3 nancial muscle. keting and back-office support. their brokers full commission in ex- “New York is a big city,and there’s Typically, those firms also reward Aaron Elstein change for a $99 monthly fee, plus a room for different models.But when top producers with a bigger percent- by transaction fee based on deal size. I hear that the days of big brokerage age of their commissions. Just last week, Ilan Bracha firms are over,I have to chuckle,”said “These are new companies, with stunned the local industry by an- Pam Leibman, chief executive of no record of any kind,” said Leonard nouncing that he was leaving Pru- Corcoran Group. “There is a reason Steinberg, a broker at Prudential Beware the slides of March dential Douglas El- Douglas Elliman. liman to lead the “Any top producer AY WHAT YOU WILL, New York office of would have to think skeptics, about Keller Williams, long and hard to make S the nation’s third- the move.” money manager largest residential But in an industry Henry Weingarten (right), real estate fran- not known to attract but at least he offers a chise. Though the the faint of heart, refreshing point of view Texas-based com- many may be willing pany is largely un- to take that chance. compared with the usual

known here, its Andrew Heiberg- Wall Street cheerleading. redux profit-sharing Ilan Bracha Douglas Heddings Andrew Heiberger er certainly hopes so. In addition to sifting through piles of economic data, Mr. model is so success- The industry veter- ful that it is a case an,who founded Citi Weingarten looks farther afield than most analysts—much, study at the Stanford Graduate Habitats in 1994 and sold it to Cor- much farther afield, since he’s the director of The Astrologers School of Business. coran 10 years later, last month Fund Inc. And the celestially minded Mr. Weingarten has “The market will change in the started Town Residential. What it some pretty dark words for investors all starry-eyed over the next three to five years,” Mr. Bracha offers is not higher commissions but said. “There will be no room for a different way of doing business. recent stock market rally. companies that pay agents 30% to Mr. Heiberger said he will give 50% of their commission, [as they clients “a higher standard of service On March 28, the planet Jupiter, although these increases are not do now].” by embracing technology and face- which represents greed, will be in captured in official measures of in- At Keller William, Mr. Bracha NEW DEAL: West Village unit for sale by Town. to-face interaction.” exact opposition to Saturn, which flation because such commodities will earn 70% of his commissions Brokers at Town Residential represents fear. After that, the two are so volatile. Even gold, he says, is until he makes $50,000 for the com- have access to consulting support planets will begin moving away overpriced at current levels— pany; he will then get 100%. Addi- large firms are successful: the level of from 20 professionals in such areas from each other and the happy bal- though it is worth owning. tionally,he will receive a cut of com- services we are able to provide to as lending and legal services. Mr. ance between greed and fear will be- With the market rallying, now missions earned by brokers he clients and our brand.” Heiberger has opened two Town of- come unhinged.This, in turn, could might be a good time to raise cash by recruits. Sources say he was getting Even Kathy Braddock, co- fices in Manhattan with space for affect behavior back on Earth, selling one’s winners, Mr. Wein- as much as 75% of his commissions founder of Charles Rutenberg, ad- 140 brokers but declined to say how specifically in the stock market, for garten suggests, adding that he can’t at Prudential Douglas. mits most top producers hesitate to quickly he is recruiting. years to come. Oh, and one more say for certain that market senti- Luring talent is only the first jump ship for firms like hers, be- “I’m in it for the long run,” he thing: 2010 corporate earnings are ment will turn exactly when the bal- step, though. These firms will have cause it means going without the said. “I will build a much better tra- likely to land around the beginning ance between Jupiter and Saturn is ample competition from well-es- things that big brokerages routinely ditional brokerage. I have done it of April, at lower levels than bulls lost. Still, the heavenly event comes tablished firms with considerable fi- provide for stars—assistants, mar- before.” Ⅲ expect. near the end of the first quarter. “We could see a 10% correction That’s also about the time the soon,” Mr. Weingarten warns. “I U.S. government is expected to be- think the market is topping out.” gin bumping up against the federal Astrology aside, his concerns debt ceiling—which some congres- about the economy seem reasonably sional Republicans swore last week grounded. He worries that housing not to raise, even if it results in Un- and unemployment will remain a drag, cle Sam defaulting on its debt and sabotaging any lasting recovery. He worldwide markets descending into also thinks that China’s economy is chaos. slowing, which will further pressure In other words: no Age of U.S. business. Meanwhile, prices for Aquarius dawning on Wall Street meat, sugar and other basics are rising, anytime soon. Taking a clipper to the hedges

THE NEXT TIME someone tries dex generated a cumulative re- to impress you by saying that turn of 89% between 2000 and he invests in a hedge fund, feel 2009, compared with a 23% free to say that your humble drop in the S&P 500.Yet much S&P 500 index fund almost of this stellar performance took surely had a better year in David Einhorn place many years back. 2010. The data suggest that it’s Investment adviser Hen- getting harder for hedge fund nessee Group reported last week managers to outperform the that its index of more than market—perhaps because their 1,000 hedge funds generated a funds are getting larger and less return of 10.2% last year, well nimble as more investors pour below the 12.8% gain in the David Tepper more money into them. S&P 500. It isn’t clear which Certainly, there are out- hedge funds fared poorly; standing hedge fund managers, Hennessee said it would re- such as David Einhorn, David Tepper lease more details on Monday. and John Paulson.But if you can’t It’s possible that last year’s get in the door with one of those subpar performance was due guys,you probably are better off simply to bad luck. After all, sticking your money in an index Ⅲ Hennessee’s hedge fund in- John Paulson fund. bloomberg news photos

INCREASE, since August, of gasoline futures 31%on the New York Mercantile Exchange. The average price per gallon is $3.08 nationwide and $3.32 in New York state, according to AAA. istock photo

4 | Crain’s New York Business | January 10, 2011 Project2:fp template.qxd 1/4/11 1:31 PM Page 1

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NEW YORK,NEW YORK edited by Valerie Block

Food trucks get permanent parking GROWING NUMBER of the city’s food trucks have become so successful that their Aproprietors are taking their talents indoors—that is, they are opening eateries. Schnitzel & Things, which sells the cutlets for $8 to $10, will make its brick-and- mortar debut on Third Avenue between East 45th and East 46th streets in March. “Our truck couldn’t keep up with the demand,” said co-owner Hannah Voss, who started the business with her husband, Oleg Voss, a former financial analyst. When the restaurant opens, the couple will give up their commercial kitchen in Red Hook, Brooklyn. They will use their sparkling new kitchen to supply the truck, which will keep on truckin’. Schnitzel follows the path of the popular CupcakeStop truck, which opened up shop at 70 Greenwich St. last month. Owner Lev Ekster secured his first major investor, Richard Kallman, whose family owns a wholesale book distributor, Bookazine. More truckers turned restaurateurs are in the pipeline. Among them are Souvlaki GR, opening at 116 Stanton St. in the coming weeks, and the Treats Truck, opening at 521 Court St. in Brooklyn this summer. Some are partnering with each other.The new Schnitzel & Things eatery, for example, will offer desserts from Treats Truck owner Kim Ima.

is anchored in coral … not pink,” Big Fuel’s wrote Piper Jaffray analyst Neely full tank Tamminga. “We may seem petty about this, but if pink hits as WONDERING WHO makes money strong as we believe it can, then spending hours on Facebook, Loft will likely woefully miss its Twitter and YouTube? Look no spring sales plan.” further than Big Fuel, a little Passing on pink proved marketing agency whose revenues perilous indeed.The retailer’s exploded more than 500% last year, shares plunged 5.3% after the Jan. to $10 million.The Manhattan- 3 report. based firm handles social media An Ann Taylor spokeswoman campaigns for General Motors, said the company does not Space.com McDonald’s, Colgate and Fisher- comment on analysts’ reports but lifts off Price, among others. Big Fuel “feels good about Loft’s spring employees man the Chevrolet assortment, including its color SPACE.COM, a site founded by Lou Facebook page, for example, and palette, which incorporates Dobbs in 1999, will debut a major create Twitter feeds, Flickr albums, fashion-relevant shades of pink, redesign on Tuesday, along with a online videos and blogs for clients. coral and melon.” $250,000 marketing campaign to With business booming, the 7- But apparently not publicize its new attractions.The year-old, 100-employee firm plans Honeysuckle, as dubbed by go-to site for space geeks will to hire another 100 employees this Pantone charts, which has been feature more stunning graphics, year, says founder and Chief anointed the season’s hottest higher-quality video and social Executive Avi Savar, 37, a former hue. During Fashion Week, networking capabilities, bringing producer for VH1. He’s looking the bright pink appeared on the site into the age of Twitter and for project managers, agency the runways of designers from Facebook. services and outreach Marc Jacobs to Nina Ricci. “We wanted to invest in a types. Even design house Kenzo structure that allowed for high- “For the first time in worked the color into its impact visuals and community our company’s life, we menswear line. building,” said Jerry Ropelato, CEO need a layer of middle “It’s feminine, it’s of Space.com and its parent management,” said Mr. optimistic and it fits the company,TechMediaNetwork. Savar. mood for this spring in Space.com attracts 5 million particular,” said Oona users monthly and is profitable, McSweeney, vice president of the company said.To gin up Fashion retail and special markets excitement for the relaunch, the in the pink at trend analysis firm firm will send “aliens” to ad Stylesight. She expects the agencies and major tourist areas, GOT PINK? That’s the key perky pink to pop up in including Times Square and question for many retailers, accessories like handbags Grand Central. after a Wall Street analyst and footwear, and apparel. The aliens will hand out downgraded women’s apparel Even cosmetics will be in the astronaut snacks like M&M’s— seller Ann Taylor Stores Corp. pink: Honeysuckle should be a which are actually taken on space last week, citing too little of the big seller for nail polish and shuttle flights—and trivia cards. trendy color in the Loft lipstick. They will hit social media, too, division’s spring merchandise

tweeting about the strange habits assortment. newscom Contributors: Lisa Fickenscher, of humans. “The early spring collection Adrianne Pasquarelli, Hilary Potkewitz

6 | Crain’s New York Business | January 10, 2011 CN014167 1/6/11 12:20 PM Page 1

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When it comes to reform achieved per dollar spent I run the most effective child advocacy organization in America for less than $100,000 per year.

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Dear Philanthropist: We’re a very small group with some very big accomplishments. Thousands of children who otherwise would be Think of this as the ultimate “Common Grant Application.” trapped in foster care are living safely in their own homes thanks to Every year in the United States, more than 250,000 children NCCPR’s unique brand of advocacy in action. And yes, to use the are torn from their homes and consigned to the chaos of the foster currently-fashionable term, that claim is “evidence-based.” care system. At least a quarter of them will be abused in foster care But between the complexity of the issue and our blunt- itself. Many more will emerge years later unable to love or trust spoken approach to advocacy, you can imagine what it’s like trying to anyone. raise money. For some children, foster care still is an improvement over Fortunately a longtime funder, the Open Society their own homes. But many others are taken needlessly from Foundations, has put up $50,000 – that’s half our budget for 2011. But everyone they know and love. Sometimes family poverty is confused we need one or more additional donors to match it. with “neglect.” Other times there are real problems but nothing that I can’t tell you more in this ad – not if I want to keep enough couldn’t be fixed with better, safer – and less expensive – options than white space to get your attention. foster care. So just as we make the case for reform on our regular But it’s not just a matter of more money for more “services.” website, www.nccpr.org, we’re making the case for funding our The fundamental principles of due process taken for granted in other organization on a website, www.whyfundnccpr.org fields of law don’t apply in child welfare. In many cases there is no There you can see exactly what we’ve accomplished on a right to counsel for the accused. The standard of proof to hold a child shoestring budget. And you can see what journalists and reform- in foster care indefinitely is the same one used to decide which minded child welfare leaders say about us. insurance company pays for a fender-bender. In most states, the fates I hope you’ll take a look at both, and/or contact me by phone of children and families are decided at secret trials. And racial and or e-mail. class bias permeate the system. If it happened in any other field of law, our fellow liberals Sincerely, would be in an uproar. But too many of our fellow liberals make an exception to everything they believe about civil liberties when someone whispers the words “child abuse” in their ears. Richard Wexler We believe in civil liberties without exception. Think of us as Executive Director “the family values left.”

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the state’s fragmented economic- development programs into a MEDICAID NY’s Wisconsin solution coordinated effort to grow regional IN ISSUING AN EXECUTIVE ORDER creating the Medicaid Redesign Team, Gov. THE INSIDER industries, or “clusters.” Andrew Cuomo said he wants to reduce the state’s $53 billion Medicaid What that means for the Empire bill—the largest in the country—by following the “Wisconsin model.” That State Development Corp. by Erik Engquist and Jeremy Smerd , one of the effort, referred to in Wisconsin as the Medicaid Rate Reform Project, was led larger fragments that Mr. Cuomo by Jason Helgerson, who started as New York’s Medicaid director last Friday. intends to reform, is unclear. But In early 2009, Wisconsin, facing a two-year, $6.6 billion deficit, passed a the governor hopes to replicate the biennial budget that cut $633 million from Medicaid. Mr. Helgerson was success of Silicon Valley as a charged with implementing the cut. Instead of making across-the-board regional cluster economy in which businesses provide goods and reductions, he brought together at least 200 participants from interest groups services to each other, share work within the health care industry and asked them to come up with the savings. forces and often collaborate to solve The state’s guiding principle was to cut without curtailing eligibility or market problems. coverage levels. In fact, goals included expanding care to the uninsured and— Mr. Cuomo wants to use perhaps most important—reconfiguring reimbursements so that providers competition to spur each council to would be paid based on the quality and not the volume of care, with added come up with development plans incentives for physicians good at providing treatments proven to work. and vie for government funding. The group came up with 500 Each council—to be composed of ideas to produce short- and long-term business and labor leaders along savings, from reducing payments for with officials from local stays at long-term care facilities to governments, higher education and making it harder to get the drug bloomberg news BUILDUP: The state is involved in many city development projects, including the WTC site. industrial development agencies— oxycodone to reducing will have six months to come up reimbursements for unnecessary with its plan.The governor also C-sections. The first round of rate cuts plans to financially reward came in September 2009. governments that consolidate and Mr. Helgerson’s achievement has istock photo Cuomo expands school districts that outperform. sometimes been overblown in the press, with some reports crediting him with Mr. Cuomo’s use of competition cutting the state’s $13.3 billion Medicaid budget by 10% over the past two and financial incentives to spur years. The actual figure is about 4.8%. However, Mr. Helgerson’s collaborative economic efforts innovation by localities mirrors the approach did provide political cover for reforms. Obama administration’s Race to the “If he can facilitate that kind of exchange, there’s enormous benefit,” said Top program, which dangled federal OV. ANDREW CUOMO Daniel Sisto, president of the Healthcare Association of New York State and flashed a mischievous grin dollars to encourage states to lift in his State of the State address last week when a member of the Medicaid task force. their caps on charter schools and Mr. Helgerson achieved the targeted cuts in Wisconsin. But last January, make other education reforms. he highlighted as an example of government he acknowledged that the sluggish economy had increased demand on the bloat the 87 councils, boards, institutes and program. Even with the cost savings, he wrote in a project update, “demand committees that have been added to the Health Officials accused for Medicaid services exceeds current funding.” Department over the decades. Mr. Cuomo wants the task force to report back by March 1 on its G of snow blindness recommendations. Mr. Sisto says the deadline is unrealistic. But before Mr. Cuomo “rightsizes” government, he will expand it: Among the more notable creations will be 10 MAYOR MICHAEL BLOOMBERG used the city’s latest snowstorm as an “regional economic development councils” that will report to opportunity to redeem his emergency readiness, but as the operations—part of the the governor’s office.The goal is to consolidate and transform administration’s reputation for snow fell, so, too, did the mayor’s comptroller’s reorganization effort. popularity. A Marist college poll But he has no intention of cutting published just as city vehicles started personnel, as he had to do during salting the streets put Mr. nearly four years as commissioner Bloomberg’s popularity at 37%, the of the state Department of lowest since he took office in 2002. Environmental Conservation. For the first time, a majority of Mr. Grannis told Crain’s that he voters—53%—said the city is on is familiar with the comptroller’s the wrong track. office because he brushed up on its Stephen Goldsmith is among the operations four years ago, when he people who has been recruited to was vying to become Alan Hevesi’s get the city moving forward. Hailed replacement.The job went to Mr. as an innovator when he joined the DiNapoli. Bloomberg administration last summer, the deputy mayor for operations was criticized for being Gone fishing absent when the post-Christmas CONNIE FISHMAN, president of the snowstorm socked the city. Mr. Hudson River Park Trust, is leaving Goldsmith faced another setback to assume the newly created post of last week when city senior vice president of Comptroller John Liu real estate at the rejected a $286 million YMCA of Greater contract request that’s part New York. of the city’s $2 billion Diana Taylor (left), the program to upgrade its mayor’s girlfriend and a antiquated emergency- former state banking response system—a major superintendent, is both project in Mr. Goldsmith’s chairwoman of the trust portfolio. and a vice chair of the bloomberg news YMCA. But she was not behind the move. Ms. Fishman Comptroller’s staff was contacted by a headhunter a won’t peter out while ago, and later discussed the matter with Ms.Taylor. AS STATE COMPTROLLER Thomas “I had to be persuasive,” said DiNapoli’s newly appointed second- Ms. Fishman, who has run the trust in-command, First Deputy for six years. “It’s a good time for Comptroller Alexander “Pete” Grannis me to do something new, and a said he will be charged with good time for the park to get a fresh streamlining the agency’s perspective and new leadership.” Ⅲ

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8 | Crain’s New York Business | January 10, 2011 20110110-NEWS--0009-NAT-CCI-CN_-- 1/6/2011 8:00 PM Page 1

million, compared with the year- earlier quarter, when it reported a Turning up the heat on Benihana loss of $839,000, or 7 cents per share, on revenue of $69.3 million. The company spent about $1 mil- hana trademark for use in Iceland, 38% of the an analyst lion on legal fees during the quarter. Founder’s widow Iran, Monaco, Singapore, Ukraine, shares of with Key- sues management Vietnam and Zambia. The original Benihana Banc Capital “A significant distraction” licensing agreement gave the Mia- Inc., which Markets, who “THE LAWSUITS have been a signifi- over right to open mi-based company only the rights has also suf- has a “hold” cant distraction, and have cost their restaurants overseas to the U.S., Central America, South fered from rating on the bottom line and diverted a lot of America and Caribbean markets, several years stock. time,” Mr. Ludington added. she said.The licensing move threat- of lawsuits as The U.S. Executives from Benihana Inc. BY HILARY POTKEWITZ ened her nascent effort to jump- well as the re- restaurant have not filed a counterclaim to Ms. start the brand. cession. chain report- Aoki’s suit, but did request addi- MONTHS AFTER WINNING a long court “We need to do more discovery “The com- BUILDERS: Founder Rocky Aoki, widow Keiko Aoki ed a loss for tional time from Ms. Aoki’s lawyers battle with her stepchildren over to find out how and why certain pany is well the second to respond, prompting speculation control of the Benihana of Tokyo things happened,” she said.” under way in a quarter, end- about a possible settlement. Beni- restaurant empire, Keiko Aoki—the Set up as a family trust by the late turnaround effort, but they’ve got a ed Oct. 10, losing $3 million, or 21 hana Inc. is expected to respond by Ⅲ third wife of Benihana founder Mr. Aoki, Benihana of Tokyo owns long way to go,”says Brad Ludington, cents per share, on revenue of $72.3 the end of the month. skull newscom/adam Rocky Aoki—is back in court over her late husband’s legacy. At stake is who gets to use the Benihana name to expand into overseas markets. Ms. Aoki last month sued Beni- hana Inc., the Miami-based man- agement company that licensed the restaurant concept in the 1990s and opened locations across the U.S., to prevent it from opening restaurants in Europe, Asia and Africa. Benihana Inc.runs more than 60 of the popular Japanese steakhouses and nearly 40 sushi restaurants un- der the RA Sushi and Haru names, generating revenues of more than $313 million last year. “They don’t have the full rights to the name,”Ms.Aoki said of Beni- hana Inc. “They know this, but they’re trying to [use it] anyway.” Executives from Benihana Inc. declined to comment. The embattled restaurant chain has been in and out of court since Opportunities abound. Does Mr. Aoki’s death in 2008. A larger- than-life personality who fancied your financial provider know himself an international playboy, Mr. Aoki left six children, two ex- where to look? wives and a widow. Needless to say, his will had been revised several 38°N – Cappadocia, Turkey times over the years. The family trust, Manhattan- based Benihana of Tokyo, owns the With access to unique global insights, market forecasts and analysis, HSBC Benihana name and trademark. It Premier is committed to helping you make the most of investment opportunities also owns the rights to open Beni- both here and abroad.1 Allowing your portfolio to be diversified not only by hana restaurants in Europe, Asia category, but also by country. It’s just one of the many unmatched benefits and Africa—and operates 17 loca- available with HSBC Premier. tions in 11 countries. Until October, the trust was run Receive a thank you gift when you start a Premier relationship with a by some of Mr.Aoki’s children from qualifying deposit by March 4, 2011.2 previous marriages. But Ms. Aoki To learn how Premier can help you take advantage of global opportunities, claimed they were mismanaging the call 866-959-8659 or visit hsbcpremierusa.com/opportunities. operation,and,after a two-year law- suit in Manhattan’s Surrogate’s Court,she became chief executive of Benihana of Tokyo. Not on track “THEY’RE NOT BUSINESSPEOPLE,” she said of her stepchildren.“I didn’t see any expansion going on under them. Rocky wanted to expand Benihana 1Securities and Annuity products are provided by Registered Representatives and Insurance Agents of HSBC Securities (USA) Inc., member NYSE/FINRA/SIPC, a registered throughout the world.” Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary of HSBC Holdings plc. In California, HSBC Securities Ms. Aoki ran her own retail and (USA) Inc., conducts insurance business as HSBC Securities Insurance Services. License #: OE67746. Securities and Annuity Products are: Not a deposit or other obligation consulting firm, negotiating the of the bank or any of its affiliates; Not FDIC insured or insured by any federal government agency of the United States; Not guaranteed by the bank or any of its affiliates; and are subject to investment risk, including possible loss of principal invested. All decisions regarding the tax implications of your investment(s) rights to sell the Wonderbra in should be made in connection with your independent tax advisor. Japan and helping companies like Mutual funds, money market mutual funds, and Exchange Traded Funds are sold by prospectus. Please consider the investment objectives, risks, charges and expenses Bayer and Sara Lee enter the Japan- carefully before investing. The prospectus, which contains this and other information, can be obtained by calling your Financial Advisor. Read it carefully before you invest. ese market. She said her late hus- Foreign securities carry special risks, such as exposure to currency fluctuations, less developed or less efficient trading markets, political instability, a lack of company information, band’s vision was to push the restau- differing auditing and legal standards, volatility and, potentially, less liquidity. 2Offer(s) valid when you begin a new personal Premier relationship in the United States funded in new money from January 10, 2011 to March 4, 2011. To qualify for HSBC Premier rant chain into China, India and status, you need to open a Premier Checking Account and maintain $100,000 in combined U.S. personal deposit and investment balances. Business owners may use their commercial central Asia because they are “fami- balances to qualify for a personal Premier relationship, but these balances cannot be used to meet the new money requirements. For qualifying customers upgrading to Premier, new ly-oriented cultures” with growing money must be in addition to existing deposit and investment balances as of the close of business on January 7, 2011 (“Existing Balances”). A monthly maintenance fee of $50.00 will be incurred if minimum balance requirements are not maintained. You have up to 90 days after account opening to meet the full $100,000 balance requirement. Eligibility requirements middle-class populations who may apply for some gift choices. would spend money on a restaurant United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing like Benihana. obligations with respect to their U.S. and non-U.S. accounts (including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts (“FBAR”)). After becoming CEO in Octo- U.S. persons should consult a tax adviser for more information. ber, Ms. Aoki discovered that Beni- Deposit products offered in the U.S. by HSBC Bank USA, N.A. Member FDIC. ©2011 HSBC Bank USA, N.A. hana Inc. had registered the Beni-

January 10, 2011 | Crain’s New York Business | 9 20110110-NEWS--0010-NAT-CCI-CN_-- 1/7/2011 1:23 Reminder:PM Page 1 rag right text

VIEWPOINT State of the state’s Silver lining editor in chief Rance Crain publisher, vp Jill R. Kaplan OV. ANDREW CUOMO has stolen the show members to pound home the need for reform. Strongly in Albany, bursting into office with big delivered, the message will filter up and empower the EDITORIAL editor Xana Antunes plans to transform state government. His speaker to keep his newfound voice. managing editor Glenn Coleman “state of the state” speech last week, a And Mr. Silver should resolve to do more than simply deputy managing editors Valerie Block, Erik Ipsen refreshing blend of cold facts about New represent his Assembly Democrats; he must lead them. contributing editor York’s problems and warm words about Mr. Silver’s words left some wiggle room, but he must not Elaine Pofeldt columnists Greg David, Alair Townsend recapturing its glory, was the talk of the be let off the hook. Not just any property tax cap will do; it politics editor Erik Engquist town. And deservedly so. must be strong enough to force schools and localities to pulse editor Barbara Benson senior reporters Theresa Agovino, But we were also intrigued by what Assembly Speaker streamline their operations. State spending cuts must be real Aaron Elstein, Lisa Fickenscher, G Matthew Flamm, Miriam Kreinin Souccar Sheldon Silver said during his remarks preceding the and lasting. Redistricting must be nonpartisan. Ethics reporters Marine Cole, Amanda Fung, governor’s. oversight must be independent of the Legislature. New Daniel Massey, Adrianne Pasquarelli, Hilary Potkewitz, Jeremy Smerd “Difficult choices must be made, but unquestionably, we Yorkers cannot rest until art director Steven Krupinski must work together to reduce state spending,” Mr. Silver the speaker commits to deputy art directors Carolyn McClain, The Assembly Daniel Mednick said. “Just as clearly, we must strive to make our state a more these principles. staff photographer Buck Ennis affordable place in which to live, to work, to raise a family, Mr. Silver’s positions copy desk chief Wendy Zuckerman speaker must be copy editor Thaddeus Rutkowski and to own and operate a business.That means working are crucial because it is research editor Dana Gordon together to cap property taxes.” held to his words his chamber that is most assistant research editor Suzanne Panara www.crainsnewyork.com The speaker also called for Albany to make government vowing reform likely to fight for the senior producer, news Elisabeth Butler Cordova more transparent, accountable, efficient and effective by status quo; Dean Skelos, senior producer, projects Kira Bindrim strengthening ethics laws, reforming the redistricting the leader of the EDITORIAL AND ADVERTISING OFFICES process and consolidating operations. Senate’s new 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 Mr. Cuomo campaigned on these points, and others have Republican majority, advertising: 212.210.0259 made them for years. But to hear them from the Assembly seems to agree with most of the governor’s agenda. Voters, Cable craincom nyk Fax 212.210.0499 speaker—the man most often blamed for running up however, must hold Mr. Skelos to a higher standard than Entire contents ©copyright 2011 Crain Communications Inc. All rights reserved. taxpayers’ tab to unsustainable levels and for shielding Senate Republicans have maintained in the past. Small- ®CityBusiness is a registered trademark of MCP legislators from scrutiny—is a breakthrough, offering us minded, provincial concerns, such as insisting on state aid for Inc., used under license agreement. hope that the change that New Yorkers have long needed is wealthy school districts and pork-barrel funding for pet TO SUBSCRIBE: finally at hand. projects, must be abandoned for good. Also, Mr. Cuomo is Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. Voters, and especially businesspeople, must now hold him right to assert that prisons can no longer be treated as www.crainsnewyork.com to his words. Mr. Silver is often erroneously viewed as a upstate job programs. ADVERTISING AND MARKETING domineering dictator in his chamber, but in fact, on most The new year is off to a promising start in Albany. advertising director Trish Henry matters, he responds to pressure from his members and the Sustained pressure from the business world, good- senior account managers Irene Bar-Am, Courtney McCombs, William E. Squitieri special-interest groups that support them.The business government groups and ordinary citizens is needed to keep account executive community must reach out to rank-and-file Assembly the politicians on the course they claim to have charted. Anthony Mowad sales manager, classified print & online John Gallagher sales coordinator, print & online Lulé Haznedari CRAIN’S ONLINE POLL COMMENTS newsletter product manager Alexis Sinclair credit Todd J. Masura 313.446.6097 IS A PAY FREEZE marketing director Amy Crossman assistant marketing manager FOR STATE WORKERS Sabra Harrison Call it sci-finance director, audience development A GOOD MOVE? John LaMarca APPLY LIBERALLY YOUTH COULD BE SERVED senior audience development manager Date of poll: Jan. 3 Tarek Cotran NEW YORK CITY THE JAN. 3 ARTICLE 271 votes is ready to offer real estate and “The 2 worlds of young general manager, interactive even cash incentives to attract an applied adults” highlights a critical issue that many Marc Minardo science school and bolster the area’s economic young people from low-income families face: web developer, interactive YES. There’s no Chris O’Donnell justification for future (“City dangles carrot to help produce a getting a first job. . 82% raising Google,” Crain’sNewYork.com, Dec. 16). The ramifications of unemployment go NEW YORK PRODUCTION government As a dean of a school of engineering just a beyond just the loss of income. We know that salaries in the production and pre-press director few miles from City Hall, I salute the attention young people who work are far more likely to Michael Corsi current fiscal that Mayor Michael Bloomberg and his graduate high school, pursue higher education

environment. advertising production manager

deputies are paying to applied science. And and achieve greater earning power as adults. Suzanne Fleischman Wies 18%. while strengthening graduate-level research Last year, the city received more than likely will contribute to the city’s economy in 143,000 applications for roughly 35,000 slots PUBLISHED BY CRAIN COMMUNICATIONS INC. the future, right now we have untapped talent in our Summer Youth Employment Program. chairman Keith E. Crain president Rance Crain NO. It will score in local engineering programs on all levels. About 1,500 of those slots came thanks to secretary Merrilee Crain political points We want to start a conversation with the $2 million in private contributions. treasurer Mary Kay Crain but save little. mayor about creating centers of innovation that To better meet the demand for summer jobs, executive vp, operations William Morrow would spark the imagination of thousands of the Mayor’s Fund to Advance New York City senior vp, group publisher Gloria Scoby students who have the potential to become a hopes to attract even greater private-sector group vp, technology, circulation, manufacturing Robert C. Adams Mark Zuckerberg, an Eric Schmidt, a Steve support. By contributing to SYEP,our partners vice president/production & Jobs or a Bill Gates. Entrepreneurship is our are giving city youth the opportunity to help out manufacturing David Kamis surest path in the global market, and New with bills at home, save for college and support chief information officer Paul Dalpiaz York—above all cities—should be known for local businesses. Donations to SYEP can help corporate circulation/audience honing that crucial skill. drive our economy forward today by making an development director Kathy Henry founder G.D. Crain Jr. (1885-1973)

istock photo —nada marie anid investment in the adult work force of tomorrow. Mrs. G.D. Crain Jr. For this week’s questions: Go to Dean —jeanne b. mullgrav chairman (1911-1996) www.crainsnewyork.com/poll to have your say. School of Engineering and Computing Sciences Commissioner New York Institute of Technology NYC Dept. of Youth and Community Development

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OPINION

mom-and-pop operations fare better than they would working at Walmart? A cheat sheet for The self-styled defenders of small business should be asked if they know what kind of wages small shops pay—and especially whether Walmart hearing they offer health benefits. HE CITY COUNCIL’S much-anticipated hearing Wed- How will consumers benefit by keeping Walmart out of New York? nesday on the impact of Walmart’s expected entry A related exercise for representa- into New York looms more as a pep rally for oppo- tives of the Red Apple supermarket nents than a sincere fact-finding inquiry. group would be to explain how its prices and selection compare with Scheduled to testify are a professor who has con- Walmart’s. Tcluded that Walmart puts small retailers out of business; the lo- cal union leader who has led the fight against Walmart, as well Why do opponents think so many New as the government affairs specialist at the grocery chain that em- Yorkers go out of their way to shop and work at Walmart? ploys his members; plus petitors, including Target, Its suburban stores do about a series of community Kohl’s, Toys “R” Us and $165 million annually in credit card activists closely allied BJ’s—to name only some of sales from city residents.The Valley with labor. the superstores that have Stream store, a stone’s throw from Given the affair’s marched into the city with- the Queens border, is the No. 1 lo- presumed one-sided na- out opposition? cation in the country for shipments ture, Walmart is unlike- The council should ordered on Walmart.com and ly to send anyone, nor find out if these chains picked up locally;and 1,400 city res- are its supporters willing are unionized, if they idents are Walmart employees. to participate. So if pay higher wages than members are interested Walmart and if their Finally, and most fundamentally, on what in a fair hearing, here is GREG employee benefits are legal basis would the City Council bar just a sample of questions better. Walmart from the city? they need to ask oppo- DAVID The federal courts might have a nents. If they don’t, the Much has been made of the lot to say on this issue. council, not Walmart, argument that Walmart will get a black eye. forces out neighborhood stores. How will Opponents think they’re putting Walmart manage to do that when its com- Walmart on trial Wednesday.Actu- How does Walmart differ from its com- petitors haven’t? And do employees at ally, the council will be in the dock.

brought 13 of the 17 major counties outside New York City under Re- GOP looks toward publican leadership. Subsequently, the very fiscally conservative Dem- ocratic executive of Suffolk Coun- ty, feeling that his party had left pro-growth future him, became a 14th Republican county leader. In the 2010 elections, victories BY ED COX of fiscally conservative candidates gave Republicans a new pro- N A COMMANDING PERFORMANCE,Gov.Andrew Cuomo growth, anti-spending and tax-cut- opted for a new venue (Albany’s Convention Center ver- ting majority in the state Senate. Our seven new state senators and sus the traditional Assembly Chamber), an unprece- 17 new Assembly members are a dented format (Senate Republican Leader Skelos and strong force for fiscal sanity in Al- Assembly Speaker Silver also spoke) and the first ever use bany and a formidable Republican of a PowerPoint slideshow (a battleship Cuomo attacked by a bench for future races at all levels of I government. plane labeled Special Interests) to deliver his inaugural state of The field of battle is set. If Mr. the state presentation last week, in which he voiced the com- Cuomo leads using New York’s uniquely strong executive budget mon concern of New York business bly and special interests, has in- powers, he will have with him a re- that “New York has no future as the creased spending, taxes and fees vitalized and strong Republican tax capital of the nation” and with each budget, imposing new force led by our Senate majority. pledged “no new taxes.”Mr.Cuomo burdens on an already hard-pressed New Yorkers will benefit from bi- wears our fiscally conservative Re- electorate. partisanship at its best. publican clothes well. Voters responded at the ballot By allying with Mr. Cuomo to While the governor and the Re- box. In the 2009 and 2010 elec- win legislative victories for real pro- publican Senate majority share the tions—both contested in a toxic po- growth policies, Republicans will political will to resolve our state’s litical atmosphere of high unem- earn the support given us on faith by $10 billion deficit by cutting only ployment,reduced home values and voters and will continue to strength- out-of-control spending, history unprecedented federal, state and en, even in this most Democratic of tells us that the Democrat’s power local government deficits—New states. It will mean a brighter future base in the Assembly will insist on York elected fiscally responsible, for our children, while demonstrat- tax and fee hikes as well. pro-growth Republicans at all lev- ing to voters that Republican prin- But New Yorkers have already els of government. The success of ciples are the key to prosperity. told us what they want. For the past Republican candidates in the 2009 two years, one-party Democratic county elections in some of the Ed Cox is New York Republican Party rule in Albany,driven by the Assem- nation’s highest-taxed counties chairman.

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January 10, 2011 | Crain’s New York Business | 11 20110110-NEWS--0012-NAT-CCI-CN_-- 1/7/2011 12:26 PM Page 1

REAL ESTATE DEALS PLUS

DreamWorks’ play dia giant that formerly owned FOREIGN Sublease space’s for space on B’way DreamWorks, is headquartered. APPETITES Michael Heaner of Kaufman DREAMWORKS THEATRICAL will be Organization represented landlord Where international real estate moving into the offices formerly oc- 1407 Broadway Real Estate in the dollars will be invested in 2011 dive may lift rents cupied by a famous matchmaker. transaction. The tenant, an affiliate of Cali- —amanda fung fornia-based movie studio Dream- HE SUBLEASE SPACE #1 that was dragging down New Works, turns animated series like York City rents in the past couple of years is rapidly Shrek into live theater productions Half-empty building (globally) on Broadway. It has inked a three- NYC, up from #3 in 2010, when disappearing, setting the stage for a potential year lease for 5,800 square feet at sells double-quick London topped the list Tincrease in what tenants will have to pay this year, 1407 Broadway, between West 38th A PARTNERSHIP of three firms, in- according to a new report from Cassidy Turley. and West 39th streets. The asking cluding Angelo Gordon & Co., re- The amount of sublease space on the market fell to 10.9 rent for the prebuilt space was $42 cently purchased the office portion per square foot. of 15 E. 26th St.—which is roughly #4 million square feet in November—the lowest level since The Previously, Patti Stanger of 45% vacant—for about $33 million. (among U.S. property types) October 2008, and 37% off the recent high of 17.3 million Millionaire Matchmaker occupied The deal signals a strengthening square feet in May 2009.The new figure is also well under the the space while filming the latest sales market in two ways, said Dou- Office sector, down from #2 season of the Bravo television series glas Harmon, who sold the proper- in 2010; multifamily will remain average of 12.8 million square feet over the past 10 years. in the Big Apple. ty on behalf of Deutsche Bank’s the top choice

DreamWorks Theatrical will RREEF Alternative Investments. Source: Association of Foreign Investors in Real Estate Sublease space, much of it in at Cassidy Turley.“Landlords are going move into the ninth-floor space First, the partnership—which tony buildings on Park Avenue, to be more aggressive on raising rents sometime during the first quarter, also includes Belvedere Capital and flooded Manhattan after the col- now that they aren’t competing with according to Ed Wartels of Cre- Metropolitan Realty Associates— “Not only are properties with lapse of Lehman Brothers and Bear as much sublease space.” saPartners, who along with col- made a pre-emptive bid before mar- significant vacancies now trading, Stearns. Because such quarters are He noted that some landlords in league Robert Stella represented the keting officially started, rather than but they are doing so swiftly and at typically 30% to 40% cheaper than the Plaza district have already start- tenant. waiting to gauge times pre-emptively,”said Mr. Har- space offered directly by landlords, ed hiking rents, and predicted that “DreamWorks Theatrical was others’ interest. mon, senior managing director at the influx pushed down rents all the practice could spread through the spread out in multiple locations,and Second, the space Eastdil Secured. over the borough. But now,much of city in the second and third quarters. now it is able to consolidate under will require time The 150,000-square-foot office the best of the acreage has been By then, he believes, asking rents one roof,” said Mr. Wartels, adding and money to fill portion of the 20-story building, snapped up by bargain hunters. could start advancing by 5% to 10% that the firm wanted an office in the up, strongly sug- which is located between Madison “Little of what is left has great of- over current levels. In December, Penn Plaza area,near Times Square. gesting that the and Fifth avenues and overlooks fice build-outs, great locations and the average asking rent in Manhat- Currently, the company has buyers believe that Madison Square Park, takes up the long-term lease time,” said Robert tan was $47.66 a square foot. space in multiple buildings along the leasing market first eight floors. Sammons,vice president of research —theresa agovino Broadway, where Viacom, the me- 15 E. 26th St. is improving. —theresa agovino

12 | Crain’s New York Business | January 10, 2011 20110110-NEWS--0013-NAT-CCI-CN_-- 1/6/2011 6:10 PM Page 1

NEIGHBORHOOD JOURNAL

In the wake of the EZ Pawn protests, however, local business Sunnyside’s cloudy view of pawnshop leaders are determined not to let Sunnyside’s vacant storefronts end up in the wrong hands. They are shops. Instead of sleazy places LESSON LEARNED: Local pressuring landlords to hire real es- Queens community where stolen goods can be turned leaders aim to lure shops tate brokers who are familiar with thinks store sends into cash and firearms purchased that bring more to the area. the neighborhood’s character and quickly and cheaply, modern urban needs,and who will bring not just fi- wrong signals about variants are places that provide a said Ciaran Staunton, nancially sound tenants, but those needed service to people who have a Sunnyside resident, who could contribute to Sunnyside’s the neighborhood run short on money, much like a who plans to open an community. bank does. Irish bar on Queens “My main conclusion coming BY MARINE COLE “People are naive about the in- Boulevard in Feb- out of this affair is that we need to

dustry,” Mr. Kaminsky said. “I don’t nolan robert ruary.In fact,the Sun- have the commercial brokers who N A CHILLY DAY last think we give a bad image to the nyside Post recently seek to get dependable paying ten- month, people step- neighborhood.” may be better than nothing. reported that more than 20 neigh- ants for local spaces,” said Ms. ping off the No.7 train Other people say pawnshops “We have lots of empty stores,” borhood stores closed in 2010. Dorfman. Ⅲ at 46th Street and Queens Boulevard in Othe heart of Sunnyside, Queens, got quite a surprise. There was music courtesy of Kiss-FM and a towering Uncle Sam walking around on stilts. The excitement was courtesy of the man in red, white and blue, David Kaminsky, who was promot- A Real Approach for ing the grand opening of his eighth New York City pawnshop, EZ Pawn Corp. Reaching Your Goals. His is the second pawnshop to open in Sunnyside in recent months, doubling the neighbor- hood’s longtime total. To some res- idents—including the 250-odd who signed a petition opposing its opening in November—EZ Pawn was one such establishment too many. “We were concerned with the image of the neighborhood,” said Ira Greenberg, president of the Sunnyside Chamber of Commerce. “The question is, when you get off the subway at 46th Street,what does [the pawnshop] say about the econ- omy of the neighborhood?” Many see the arrival of such stores, where people can get short- term cash loans against everything from gold chains to guitars and elec- tronics, as a bleak indication of the lingering effects of the Great Reces- sion. Others call them an unwanted reminder of the economic gap be- tween the area’s largely white mid- dle-class population and less well- Boyd G. Adelman off recent immigrants from South America and Asia. President, Marathon Enterprises, Inc. (Sabre ) and State Bank Client A touch too much THE FIRST OF the new arrivals, Pawn Shop of Sunnyside, opened in Sep- tember in a less visible location and aroused little protest.But EZ Pawn, with its prime location and bright- yellow awning—and the possibility of flashing neon signs and long hours—was too much. It is just across the boulevard from the tow- Put Your Business in a Be er State. ering,Art Deco-inspired Sunnyside Every day provides new possibilities to prove dreams can be realized. arch, a popular decades-old land- mark. State Bank supports this visionary spirit with real people and real solutions “The specter of a large, 24-hour blinking sign visible from the No. 7 that free your business to pursue opportunity – to imagine, to plan and train calling forth those who might get off and on again just to pawn expand. You’ll nd proven expertise, genuine  exibility and a relationship items was alarming,” said Patricia focus that inspires trust. More than bankers, we’re business people, Dorfman, third vice president at the Sunnyside Chamber of Commerce listening, learning and responding to your needs, so you can take on and one of the signers of the petition tomorrow.
is is the power that comes from pu ing your business in a that was sent to local elected officials 516.465.2300 opposing the store. be er state. Opportunity is calling. Let’s get to work www.statebanko i.com While that effort failed to stop the store, it did help persuade Mr. Kaminsky to cut back its hours and tone down its signs. He said people have the wrong idea about pawn-

January 10, 2011 | Crain’s New York Business | 13 20110110-NEWS--0014-NAT-CCI-CN_-- 1/6/2011 8:06 PM Page 1

FOR THE RECORD

at 2 Gotham Plaza, Long Island City, 510 Madison Ave., a 30-story building On the same day, he sold 50,000 shares Queens. There will be one three-year owned by Boston Properties. Jason at $80.06, in a transaction worth ABOUT THIS SECTION term, with one three-year term option to Lund of Cushman & Wakefield $4,003,060. He now directly holds renew, exercisable at the department’s represented the tenant, while Paul 16,812 shares. FOR THE RECORD is a weekly listing of information from the public record that sole discretion. Direct questions to Amrich of CB Richard Ellis represented can help businesspeople in the New York area find opportunities, potential Dorothy Thompson at (212) 442-2816 the landlord. Asking rents in the Sara E. Moss, executive vice president new clients and updates on competitors. or [email protected]. building start above $100 a square foot. and general counsel, exercised options To ask questions or get more information on this section, contact Suzanne on 12,500 shares of common stock at Panara at [email protected]. ● Health and Hospitals Corp. ● Inscape signed a lease for 6,500 square $39.56 on Dec. 21, in a transaction Seeks competitive sealed bids by 10 a.m. feet at 414 W. 14th St., a building owned worth $494,500. On the same day, she on Feb. 4 for dental assistant training. A by the Carlyle Group. The company will sold 12,500 shares at $80.01, in a prebid conference will be held at 10 a.m. occupy the sixth floor. Stuart Siegel of transaction worth $1,000,115. She now on Jan. 21 at Woodhull Medical and Grubb & Ellis represented the tenant, directly holds 17,189 shares. BANKRUPTCIES Filed for Chapter 7 bankruptcy Mental Health Center, 760 Broadway, while Brad Gerla and Matt Bergey of protection on Dec. 23. The filing cites third-floor conference room 2, CB Richard Ellis negotiated on behalf ● Pall Corp. (PLL) The following listings are selected from the estimated liabilities of $500,001 to $1 Brooklyn. The bid package request of the landlord. The asking rent was $75 Lisa McDermott, chief financial officer most recent available filings by companies million and estimated assets of $100,001 deadline is Jan. 14 at 4 p.m. For more a square foot. and treasurer, exercised options on seeking bankruptcy protection in the to $500,000. Among the creditors with information regarding this solicitation 51,000 shares of common stock at prices Southern and Eastern Districts of New the largest unsecured claims are or to obtain bid documents free of ranging from $28.68 to $34.07 on Dec. York. Information was obtained from U.S. Christopher McCarthy, owed $87,000, charge, e-mail Enid Rodriguez at STOCK TRANSACTIONS 22, in a transaction worth $1,640,550. Bankruptcy Court records available on Citibank Checking Plus, owed [email protected]. On the same day, she sold 51,000 shares Public Access to Court Electronic Records. $43,142.85, and Citi AAdvantage Following are recent insider transactions at at prices ranging from $50.00 to $50.10, Listings are in alphabetical order. Business Card, owed $25,369.39. New York’s largest publicly held companies in a transaction worth $2,550,121. She REAL ESTATE DEALS filed with the Securities and Exchange now directly holds 5,548 shares. ● 890 Flushing Ave. Housing Development ● Navesync Inc. Commission by executives and major Fund Corp. 74 Kent St., Brooklyn Companies that would like to have details shareholders. Listings are in order of ● Ann Taylor Stores Corp. (ANN) 890 Flushing Ave., Brooklyn Filed for Chapter 11 bankruptcy of their recent transactions appear in these transaction value.The information was Christine Beauchamp, president of Ann Filed for Chapter 11 bankruptcy protection on Dec. 24. The filing cites listings should e-mail descriptions obtained from Thomson Reuters. Taylor Stores, exercised options on 66,665 protection on Dec. 30.The filing cites estimated liabilities of $50,001 to following this format to shares of common stock at prices ranging estimated liabilities of $500,001 to $1 $100,000 and estimated assets of [email protected], with “Real ● Starwood Hotels and Resorts Worldwide from $2.82 to $14.08 on Dec. 17, in a million and estimated assets of $100,001 to $500,000. Among the estate transaction” in the subject line, or Inc. (HOT) transaction worth $450,651. On the same $1,000,001 to $10 million. Among the creditors with the largest unsecured enter them online at Frits D. Van Paasschen, director and day, she sold 66,665 shares at $27.62, in a creditors with the largest unsecured claims claims are DL Partners, owed $33,864, crainsnewyork.com/submitadeal. Deals are chief executive, exercised options on transaction worth $1,841,561. She now are the New York City Department of Chase, owed $14,000, and Bauman & listed in order of square footage. 200,000 shares of common stock at directly holds 61,937 shares. Environmental Protection, owed Krasnoff, owed $8,040. $11.39 on Dec. 27, in a transaction $30,000, the New York State Workers COMMERCIAL worth $2,277,000. On the same day, he Gary Muto, president of Loft, exercised Compensation Board, owed $24,500, ● Natixis signed a lease for 180,000 sold 230,926 shares at prices ranging options on 49,999 shares of common and the New York City Environmental GOVERNMENT CONTRACT square feet at 1251 Sixth Ave., a 54-story, from $60.31 to $60.36, in a transaction stock at prices ranging from $2.82 to Control Board, owed $1,800. OPPORTUNITIES 2.3 million-square-foot building owned worth $13,937,139. He now directly $7.32 on Dec. 17, in a transaction worth by Mitsui Fudosan. John Cefaly and holds 130,025 shares. $215,994. On the same day, he sold ● 33 W. 127 Following are selected contract Rob Lowe of Cushman & Wakefield 49,999 shares at $27.94, in a transaction c/o Migdol Organization opportunities recently announced by New represented the tenant, while Peter ● SL Green Realty Corp. (SLG) worth $1,397,157. He now directly 223 W. 138th St. York City agencies.To learn how to sell Shimkin of Newmark Knight Frank Marc Holliday, chief executive and holds 119,367 shares. Filed for Chapter 11 bankruptcy goods and services to city government, visit represented the landlord. Asking rents director, sold 158,600 shares of common protection on Dec. 28.The filing cites www.nyc.gov/selltonyc. For a searchable in the building are in the $70s a square stock at prices ranging from $63.40 to ● Cognizant Technology Solutions Corp. estimated liabilities of $1,000,001 to $10 database of current procurement notices, foot. $64.48 between Dec. 15 and Dec. 17, in (CTSH) million and estimated assets of 1,000,001 visit www.nyc.gov/cityrecord. Listings are a transaction worth $10,092,524. He Chandrasekaran Ramakrishnan, to $10 million. Among the creditors with alphabetical by category and department. ● SS&C Technologies signed a 10-year now directly holds 349,947 shares. president and managing director, global the largest unsecured claims are Padma lease for 51,000 square feet at 675 Third delivery, exercised options on 20,000 Construction Corp., owed $42,500, CONSTRUCTION SERVICES Ave., a 32-story, 342,000-square-foot ● Estée Lauder Cos. (EL) shares of common stock at $2.88 Tarantino Consulting Group, owed ● Department of Design and Construction building owned by The Durst Harvey Gedeon, executive vice between Dec. 17 and Dec. 20, in a $5,000, and Yarnis Nunez, owed $2,900. Seeks competitive sealed bids by 2 p.m. Organization. Michael Cohen and Leon president, research and development and transaction worth $57,600. On the same on Feb. 3 for the Fort Washington Manoff of Colliers International product innovation, exercised options on day, he sold 20,000 shares at prices ● Dunkin 36 Armory Building envelope represented the tenant, while Tom Bow 50,000 shares of common stock at prices ranging from $72.40 to $72.63, in a 4060 Broadway rehabilitation. An optional prebid and John Grotto negotiated on behalf of ranging from $33.44 to $43.10 on Dec. transaction worth $1,449,150. He now Filed for Chapter 11 bankruptcy conference will be held at 10 a.m. on Jan. the landlord in-house. Asking rents in 21, in a transaction worth $1,913,500. directly holds 35,570 shares. Ⅲ protection on Dec. 30. The filing cites 12 at the Fort Washington Armory the building are around $52 a square foot. estimated liabilities of $10,000,001 to Building, located at 216 Fort $50 million and estimated assets of Washington Ave., Manhattan. ● The Permanent Mission of Japan to $1,000,001 to $10 million. Among the Questions should be directed to Ben the United Nations renewed its lease for DEALS ROUNDUP creditors with the largest unsecured Perrone at (718) 391-2614. 50,700 square feet at 866 United Nations claims are the New York City Plaza, a six-story, 348,000-square-foot ● TRANSACTION SIZE Department of Finance, owed Department of Parks and Recreation building owned by Vornado Realty COMPANY (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE $118,506.39, the New York City Water Seeks competitive sealed bids by 10:30 Trust. Mariyon Robertson and Junji Board, owed $36,065.32, and Vorillas a.m. on Feb. 3 for construction of a dog Miyake of Cassidy Turley represented PAA Natural Gas $603.6 Plains All American GCI Inc., owed $6,701.56. run in Maria Hernandez Park. Bid the tenant, while Glen Weiss, Martin Storage Pipeline, Tortoise Capital Advisors, Kayne Anderson documents are available for a fee of $25 Dresner and Jared Solomon negotiated Capital Advisors, Clearbridge ● Dunkin 36 I in the blueprint room, Olmsted Center, on behalf of the landlord in-house. The Advisors (Manhattan) 3750 Broadway Flushing, Queens, from 8 a.m. to 3 p.m. asking rent was $60 a square foot. Facebook Inc. $500.0 Goldman Sachs Group, GCI Filed for Chapter 11 bankruptcy For further information, contact Juan merchant banking protection on Dec. 30.The filing cites Alban at (718) 760-6771 or ● We Work signed a 15-year lease for division (Manhattan), estimated liabilities of $10,000,001 to [email protected]. 35,000 square feet at 1-5 Little W. 12th Mail.ru Group $50 million and estimated assets of St., a building owned by 2 Ninth ReSearch Pharmaceutical $260.6 Warburg Pincus FB M&A $1,000,001 to $10 million. Among the GOODS AND SERVICES Avenue. The firm will occupy the second Services Inc. (Manhattan) ● creditors with the largest unsecured Department of Education through sixth floors. Michael Okun and Grupo Prisa SA, $104.9 W.P. Carey & Co. (Manhattan) SB M&A claims are the New York City Seeks competitive sealed bids by 4 p.m. Richard Gottlieb of Coldwell Banker headquarters in Madrid Department of Finance, owed on Jan. 18 for furnishing and delivering Commercial Hunter Realty represented United Panam Financial $67.0 Pine Brook Road Partners FB M&A $45,441.27, Vorillas Inc., owed microscopes, microscope accessories and the tenant, while Sloane Rhulen of CB Corp. (remaining 62.2%) (Manhattan), individual investors $6,120.68, and Cohen Hurkin Ehrenfeld services. Vendors must be authorized Richard Ellis negotiated on behalf of the Air Works India $27.3 GTI Group (Manhattan), GCI Pomerantz & Tenenbaum, owed $5,433. distributors able to supply the landlord. The asking rent was $55 a Engineering Private Ltd. New Enterprise Associates microscope brands Meiji-Techno, square foot. (India) Pvt. Ltd. ● Dunkin 36 II Monolux, National or Parco to all ● ClearView Risk Holdings $23.0 GCP Capital Partners GCI 3600 Broadway schools and offices under the EisnerLubin signed a 15-year lease for (Manhattan) Filed for Chapter 11 bankruptcy jurisdiction of the Board of Education of 19,000 square feet at 1411 Broadway,a Chase Industries Inc. $17.9 Sentinel Capital Partners FB M&A protection on Dec. 30. The filing cites the City of New York. For all questions 40-story building owned by 1411 (52.9%) (Manhattan), management of estimated liabilities of $10,000,001 to related to this solicitation, send an Trizechahn-Swig. The firm occupies the Chase Industries Inc. $50 million and estimated assets of e-mail to [email protected]. ninth floor. Arthur Rosenbloom of Netmovies Entretenimento $6.6 Tiger Global Management FB M&A $1,000,001 to $10 million. Among the Newmark Knight Frank represented the Ltda. (Manhattan) (54.8%) creditors with the largest unsecured ● Department of Health and Mental tenant, while Tara Stacom, Paul claims are the New York City Hygiene Glickman, Whitten Morris, Scott Document Security $4.0 Fletcher Asset Management GCI Systems Inc. Inc. (Manhattan) Department of Finance, owed Requests proposals by 1 p.m. on Jan. 25 Vinett and Diana Biasotti of Cushman $27,556.02, Vorillas Inc., owed from concessionaires for provision of & Wakefield negotiated on behalf of the Selected deals announced for the week ended Jan. 2 involving companies in metro New York. $2,489.74, and Consolidated Edison of food and beverages to approximately landlord. The asking rent wasn’t FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing shares of a company with the participation of a financial buyer. GCI: Growth capital investment New York, owed $1,758.17. 2,700 department employees and their disclosed. represents new money invested in a company for a minority stake. SB M&A: Strategic buyer guests within a 900-square-foot M&A represents a minority or majority acquisition of existing shares of a company without the ● EXARC designated area on the 14th floor of the ● Senator Investment Group signed an participation of a financial buyer. source: capitaliq 12 W. 31st St. department’s new office facility located 11-year lease for 11,500 square feet at

14 | Crain’s New York Business | January 10, 2011 20110110-NEWS--0015,0016-NAT-CCI-CN_-- 1/6/2011 5:31 PM Page 1

SMALL BUSINESS INSIDE How-To: Seven tips for entrepreneurs who want to make better use of their limited time PAGE 18 The largest SBA-backed loans in the New York area in fiscal 2010 PAGE 19

Rx FOR A DOCTOR’S FINANCING HEADACHE: AN INTERMEDIARY R. EDUARDO L. PIGNANELLI realized a longtime goal last month when he opened Amsterdam Medical Practice, a multispecialty clinic Dserving Washington Heights’ Latino community. It replaces the smaller of two medical facilities that he has operated in the neighborhood for 15 years. You might expect a physician whose business had 40 employees and annual revenues of $4.5 million to easily obtain a loan for expansion. But with credit markets tightening in 2008, even Dr. Pignanelli’s strong practice didn’t make him a shoo-in to get the money he needed to buy 5,000 square feet of raw condo space and transform it into a state-of-the-art health care facility. It wasn’t until the internist decided to use a go-between that he succeeded in getting bank financing. The arduous search for credit began after the doctor had put down a $100,000 deposit for ground-floor space in a new development. With the clinic’s projected costs totaling $4 million—including the condo price of $2.2 million and $1.3 million for the build-out—he was looking to borrow $3.5 million. “Just as I engaged the developer, the economic crisis erupted,” said Dr. Pignanelli, who is originally from Argentina. He hired a financial consultant, and had his accountant prepare statements and complete reams of paperwork. He shelled out about $20,000 in professional and bank application fees, but Dr. Pignanelli didn’t hear back from any of the three lenders he ETING LOAS G approached. In mid-2009, the discouraged doctor turned COMPANY to Biz2Credit, an online service that connects Amsterdam Medical borrowers with banks. On the intermediary’s Practice website, borrowers fill out an application and PAIN RELIEF: Dr. Eduardo LOANS $3.9 million in upload backup documents, including company Pignanelli borrowed to loans and a line of credit tax returns and financial statements. A case purchase raw condo space manager then contacts them. for his Washington Heights FINANCING Various Because Biz2Credit is also based in New clinic. York, Dr. Pignanelli met personally with its representatives, who helped him put together a loan application and streamline his financial statements. They also recommended a new accountant. Biz2Credit then took the case directly to bank underwriters, and the doctor met directly with lenders in the final stage of the approval process. By year-end 2009, with Biz2Credit’s assistance, Dr. Pignanelli had received the financing he wanted—and more: New Bank in Flushing approved him for a $1.6 million loan to buy the condo, Community Development Corp. OK’d a $1.3 million 504 SBA loan for renovations, and levinekarjean Sovereign Bank came through with a $1 million line of credit. The loans carry interest rates of 4% to 6%. Companies helping businesses that hit a brick wall when trying to access bank loans “provide a valuable service,” said Les Dinkin, managing director at Novantas, a Manhattan financial consultancy. “They’ve developed Lenders open tap relationships with institutions willing to take a look at situations others have turned down.” Biz2Credit offers customers a range of services for different monthly subscription fees. Dr. Pignanelli pays $99 for the “premium” option, which includes case management and online document storage. The company for well-prepared also gets between 1% and 1.5% of a loan’s value from banks. They consider the compensation “a marketing fee” because Biz2Credit delivers borrowers that fit their lending criteria, according to founder and CEO Rohit Money flows to firms with strong history, finances, data Arora. For example, the clinic’s Washington Heights address let the institutions comply with the federal Community Reinvestment Act, which encourages BY ANNE FIELD banks to service borrowers “within a 75-mile radius of their nearest branch,” including in low- and moderate-income neighborhoods, Mr. Arora said. AGER TO EXPAND his Brooklyn-based mobile phone And because the lending banks are generally small and “don’t have WHO’S GETTING trading desks, the only way they make money is to lend it,” he said. distribution company to India, David Kalsang approached LOANS? Sovereign saw its line of credit as a way to develop a “depository Sovereign Bank early last year for a $50,000 line of credit. He relationship” with Dr. Pignanelli and to position itself as a bank that “helps filed an initial application and lots of documentation for ORGANIC GROCER garners $50K with doctors,” Mr. Arora said. New Bank, on the other hand, was pleased to lend to Malamal Inc., which has $1 million in sales, with help from advisers’ help Page 16 “a high-quality customer—a doctor—and to have an opportunity to securitize Biz2Credit, a company that matches entrepreneurs with lenders. Despite SPORTS MARKETER the loan and sell it to a secondary market.” E succeeds via “character That shouldn’t be hard. Dr. Pignanelli’s medical practice now employs 60 what many believe is a nearly impossible climate for small business and credit” Page 18 people and generates revenues of nearly $7 million a year. borrowers, Mr. Kalsang got the line of credit, which carries a 9% interest rate. —CARA S. TRAGER Banks are a long way from turning the spigot wide open, but, as Mr. Kalsang found, money See LENDERS on Page 16

January 10, 2011 | Crain’s New York Business | 15 20110110-NEWS--0015,0016-NAT-CCI-CN_-- 1/6/2011 5:32 PM Page 2

REPORT SMALL BUSINESS Lenders open taps to fund firms REAPING THE LETTUCE: Continued from Page 15 be key to success for small firms In some cases,if they have strong Tess Gill got a loan for her store after consulting has started to flow again to small seeking loans. evidence of improvements in rev- local groups about her borrowers. But many banks are taking a flex- enue or cash flow, entrepreneurs business plan and The number of Small Business ible view of cash flow these days. who received less than they wanted finances. Administration-backed loans made David Margalit, deputy commis- the first time around can try again in the agency’s New York district sioner of business development at and get better results. rose to 1,739 in the fiscal year end- New York City’s Department of For example, Mr. Kalsang would ed in September 2010, up 39% from Small Business Services, suggests have liked to have asked Sovereign 2009 levels. Dollar volume hit $483 that loan applicants inform banks for $200,000, but his financial ad- million, a 34% gain. At J.P.Morgan about new marketing plans or other viser recommended scaling down Chase, the area’s top bank in small moves that are likely to increase the request. That’s largely because business lending, the number of revenues. he wasn’t able to provide 2009 tax loans soared 222%, to 627, while “If you’re anticipating growing returns—he’d put in for an exten- dollar value ballooned 224%, to $59 your top line by $10,000 but haven’t sion following the birth of his son million. included that in your statement of and the death of his father—and his “There’s been a little loosening of cash flow, you ought to rethink your 2008 documents didn’t demonstrate credit,” said Barry Sloane, chief ex- plan,” he said. the cash flow required to support a ecutive of Newtek Small Business larger line of credit. Finance Inc., a Manhattan-based More recently, armed with 2009 nonbank lender, which increased documents showing more growth ADVISERS’ LOAN-ACCESS AID the value of its SBA-backed area and revenues, Mr. Kalsang ap- loans 443%, to $11 million, in 2010. proached Seedco Financial, a Man- CULTIVATES GREEN GROCER “It’s nothing tremendous, but it’s hattan-based nonprofit, to request ESS GILL IS PROOF of one fact of life for startup founders seeking bank happening.” $250,000 in financing. The five- funding today: It’s hard to go it alone. One reason: Banks can get high- year loan, at 8% interest, came T Ms. Gill recently got a $50,000 loan from J.P. Morgan Chase for er returns on their loans than on through in December. Brooklyn Victory Garden, the urban general store she launched with her some of their other financial prod- husband in October. She’d struck out on her first attempt. Closing the deal ucts these days, Mr. Sloane pointed Community banks take the lead DESPITE THE PUSH ultimately required help from several groups that out. Demonstrating by some big banks assist entrepreneurs with business planning. Landing a loan remains a long to increase lending, small compa- GETTING LOANS “The support from advisers I found around shot for many small firms, requiring growth drew nies are still likely to fare better with the city was crucial,” she said. careful documentation and plan- community banks and small banks. COMPANY Brooklyn ning.But such an effort stands a bet- another $250K Nationally, nearly 58% of small Ms. Gill, who ran a business in Hawaii that Victory Garden ter chance of paying off now. business loan balances outstanding imported Indonesian crafts before she moved to LOAN $50,000 “Banks are more willing to take in financing in the first quarter of 2010 were New York, got the idea for Brooklyn Victory Garden three years ago. Interested in FINANCING J.P. Morgan the time to understand the strategy David Kalsang, Malamal Inc. funded by community banks with of the small business,” said Ron less than $10 billion in assets, ac- sustainable and locally produced foods, she Chase Walker,president of Next Street Fi- cording to Independent Communi- came up with what seemed like a perfect nancial, a Manhattan-based mer- ty Bankers of America. business for Clinton Hill: a store selling meat and chant bank that works primarily Approaching such institutions cheese from grass-fed and pasture-raised animals, produced by regional with small companies. successfully requires an understand- organic farmers and artisans. In contrast to a year ago, many ing of their target markets. Certain “We have a lot of diversity in our neighborhood, but not in our shopping Established businesses prevail bankers are now willing to discuss banks focus on businesses in their choices,” she said. SO WHO is getting bank loans now? extenuating circumstances that may immediate area or on particular in- She originally planned to open for business in 2009. But because of the Perhaps more than ever, the rule of have led to a firm’s slow growth or dustries,such as retail or health care. economic downturn, Ms. Gill ended up extending the launch date by a year. thumb is the older or bigger the out- losses during the past three years. “You’ve got to do the legwork,” That gave her more time to research the market and take free workshops on fit, the better. A recent report from Entrepreneurs should explain in a said José Manuel de Jesús,a business business planning, accounting and other topics held by the Brooklyn Public the Federal Reserve Bank of New letter or in a meeting with a loan of- counselor at City Tech Small Busi- Library and NYC Business Solutions, a city-run program that advises York found that in the first half of ficer how they addressed these chal- ness Development Center in entrepreneurs. Meanwhile, to save for startup funding, she worked part- 2010, most loans to small business- lenges through cost cutting,renego- Brooklyn. time as a special projects consultant for natural gas and electricity es went to firms that had been in op- tiating rents and the like, say He suggests WHO’S GETTING company National Grid. eration for more than five years and experts. carefully reading a Ms. Gill also sought out the Business Outreach Center Network, a that had clear revenue growth, or “We like people who are able to bank’s website for LOANS? microenterprise and small business development organization. An that used retained earnings to fund spend less and get more,” said Frank clues, paying par- adviser scrutinized her business plan, walked her through the loan themselves. Sorrentino,chief executive of North ticular attention to process and pored over her financial statements. “The companies that are more Jersey Community Bank in Engle- success stories that might be high- “He looked at my financials backward and forward to make sure every likely to get credit have three to 10 wood, N.J. lighted. number made sense,” she said. years’ operating history or more, NJCB, which works with clients In some cases, small firms may He also suggested steps that Ms. Gill, with no formal accounting collateral and cash flow,” said Mr. in New York City, has increased its find they stand a better chance of Sloane. small business lending by about 20% success with a community bank if background, was unlikely to think of on her own—for example, treating the Lavanderia Express, a 12-em- over the past year. they offer to give the institution cost of build-out improvements as a long-term asset rather than a strategic ployee chain of four laundromats in Mr. Sorrentino favors businesses more of their business. NJCB en- business expense, thereby improving her balance sheet. Brooklyn and Queens, is a good ex- that have made cuts with an eye to- courages borrowers to open other Turning to CAMBA, a social services agency that assists local ample. The firm, which has rev- ward long-term consequences—for accounts, such as personal checking entrepreneurs, Ms. Gill got additional assistance with her business plan—and enues of between $1 million and example, moving marketing dollars accounts. Mr. Sorrentino recently an introduction to a loan officer at a Chase bank branch in Park Slope. Armed $1.5 million, was started 12 years to more cost-effective avenues, turned down an applicant who was with financial documents she had prepared with the aid of both the BOC ago by Jose Almonte. He recently rather than slashing the marketing interested only in a loan. Network and CAMBA, Ms. Gill applied for a $75,000 loan through the Small got a $500,000 loan from Eastern budget entirely. And, as always, connections can Business Administration’s streamlined Express program. Funding, a Manhattan financing help prospective borrowers. Mr. Al- Initially, however, the bank turned her down. So Ms. Gill’s advisers company that’s owned by Brookline Owners must pony up monte of Lavanderia Express often suggested that she increase her contribution to her startup to $58,000 Bank in Boston,which he intends to ACCORDING TO the Federal Reserve, acts as an intermediary for Eastern from $33,000, which a gift from her mother-in-law enabled her to do. A few use to open another location early most small businesses that applied Funding, referring suitable would- weeks later, Chase approved a seven-year loan at a 7% interest rate. this year. for loans in the first half of 2010 got be owners of laundromats and small Chase can’t comment on specific situations, a spokesperson said. But in less than they sought. Michael grocery stores who, like himself, are general, he noted: “To be approved for an Express loan, businesses need to Banks have become more flexible Cleary, head of Chase Business immigrants from the Dominican provide a solid business plan, the right amount of working capital and JUST AS THEY DID during the worst of Banking, said it’s not uncommon Republic. In the past year alone, he evidence of good financial standing.” the recession, banks expect loan ap- today for a business to request a spe- referred about 25 such entrepre- Ms. Gill said she’s now on track to make $400,000 to $500,000 in plicants to supply them with two to cific dollar amount, only to be asked neurs to the bank. Most of them revenues in her first full year of operation. She’s putting most of the money three years’worth of tax returns,bal- to contribute more out of pocket have received funding, he said. back into the business, so she can prepare for her next step: finding investors ance sheet information and a lot of and receive a smaller loan. Knowing the right people is cer- who can help her open more Brooklyn locations. other data,depending on the type of “I help people do deals, although tainly no guarantee of a loan, but in —ANNE FIELD business. Cash flow and acceptable it may not be the one they came to today’s still-unpredictable lending debt-to-service ratios continue to do,” Mr. Cleary said. climate, it doesn’t hurt. Ⅲ

16 | Crain’s New York Business | January 10, 2011

20110110-NEWS--0018-NAT-CCI-CN_-- 1/6/2011 5:33 PM Page 1

REPORT SMALL BUSINESS

OLD-FASHIONED VIRTUES PAY OFF HOW-TO FOR MARKETER SEEKING FUNDS Seven work habits of highly HE YEAR 2008 wasn’t T exactly a great time to start a business, especially one that effective entrepreneurs depends on corporate largesse. But that didn’t stop Adam Rauch from Shorter meetings, launching One Line Sports Agency or getting more computer a bank loan to do it. screens, other ways Mr. Rauch started the business—which creates to maximize time sports- and entertainment- related corporate BY ELAINE POFELDT incentive, reward and sponsorship programs— IKE MOST entrepreneurs, with $12,500 from his Gina Masullo knows her savings. He grew it by time is her currency. So drawing on his five years’ the founder of Word experience at a similar Count Communica- company, where he had Ltions, a one-woman public relations held executive positions in firm in the West Village, tries to marketing and make the most of it. QUIET, PLEASE: LEAN OPERATOR: Entrepreneur Gina promotions. Adam Rauch keeps On Fridays, when it’s hard to He has also taken a Masullo brings her a tight rein on schedule appointments with jour- laptop to the library. conservative financial expenditures at his nalists who are on deadline, she approach and operates his corporate incentive books meetings with her clients in- levinekarjean business. lean, profitable business stead.When she needs a break from TIP TWO is one of many services that will let from his home in Bayside, working in her office, she brings her Keep meetings short. you outsource small office tasks. Its Queens. Mr. Rauch has just two employees—a salesperson and an event laptop to the library, rather than a subscribers can, on its minimum planner—and pays bills promptly to avoid finance charges. One Line’s coffee shop, because she knows that CONSIDER SCHEDULING meetings for plan, delegate 35 tasks that each revenues were set to double in 2010 from the previous year, to more than $1 she works better in a quiet environ- either 20 minutes or 50 minutes, in- take 20 to 30 minutes a month to million. ment. stead of for a half-hour or an hour. assistants in India for $35, said But sluggish cash flow is sometimes a problem. Mr. Rauch can wait as To avoid getting distracted by “It’ll give you 10 minutes to Robert Daniels, director of business long as 90 days for payment on projects that range from getting a luxury e-mail,she uses an online timer called make sure your next meeting starts development.You can phone in your suite at a stadium concert ($250 a person) to Chimoo (www.chimoosoft.com/ on time,” Mr. Miller said. requests or send them by e-mail,live handling a trip to a major sports event, complete products/chimootimer/) to limit the chat or Web forms. WHO’S GETTING TIP THREE with deluxe accommodations and high-end meals minutes she spends every day plow- Clients have recently asked his LOANS? ($7,000 a person). ing through her inbox. Use three computer monitors. team to put together a spreadsheet As a result, Mr. Rauch went looking for a line With the freedom of self-em- of all videographers in New York DAVID GOLDIN, of credit when the agency was 6 months old. He naturally turned to the local ployment comes a harsh reality: If president and chief City, find an all-in-one printer/ you don’t use your time productive- executive of AmeriMerchant, an al- scanner/copier for less than $100, Citibank branch, where he had commercial savings and checking accounts ly, you won’t make a living. ternative financing provider in figure out why a MetroCard was not and had also conducted his personal banking for years. He met with the “The idea of being your own Manhattan, had three monitors working, and even (gasp!) break up client services manager, his go-to person for help with such tasks as boss is wonderful,” Ms. Masullo connected to his computer, so they with a girlfriend (Rent A Smile processing his clients’ credit card payments. said. “The important thing for act, in essence, like windows on a didn’t charge extra). Instead of handing him an application, the manager counseled Mr. Rauch me is to focus on the boss part— computer screen—eliminating the “New York is the most popular to wait another six months “to give the bank time to monitor the history of my to be accountable and stay on need to toggle between windows on customer base we have,” said Mr. finances,” Mr. Rauch recalled. “I needed to prove schedule.” a single screen. Daniels, who estimated that 40% of the business’ viability first.” GETTING LOANS Fortunately, there are plenty of “You can have multiple docu- the company’s customers are in the Six months later, in December 2009, Mr. strategies you can use to reclaim ments open at one time,”he said,es- five boroughs. Rauch secured a $40,000 credit line. COMPANY One Line small parts of your day and, if you’re timating he saves at least 20 minutes According to banking experts, Mr. Rauch was Sports Agency lucky, save a few hours a week. a day by being able to glance quick- TIP SIX smart to heed the advice, because the extra LOAN $40,000 line of Some people are using Google ly from e-mail to spreadsheets to Update all of your social media time gave the bank a sufficient, year-long record credit Chrome as their browser, because other content. sites at one time. of One Line’s deposits, withdrawals and cash they find it opens up faster than flow needs. He was also wise to cultivate a FINANCING Citibank competitors and crashes less. TIP FOUR IF SITES LIKE FACEBOOK,Twitter and relationship with the manager. Others are using an application Make it easier to access your MySpace are important to your “Banks lend on character and credit,” said called OtherInbox to automatically computer files everywhere. marketing mix, use free software Les Dinkin, managing director at Novantas, a financial consulting firm in organize their e-mail messages into TweetDeck to update them all at Manhattan. folders. FREE SOFTWARE Dropbox allows you one time.You can also schedule your In addition, borrowers who do their personal and business banking in Here are some other tips from to store files that you want to access tweets. the same place allow that institution to better gauge their financial self-employed professionals and from work,home,Starbucks or wher- TIP SEVEN behavior, including “whether they pay down their credit cards, have experts. ever you go that has Internet access. Carmen Sognonvi, who runs Just say no. bounced any checks and maintain a certain deposit level,” Mr. Dinkin said. TIP ONE Raj Seshadri, head of small business banking at Citibank, believes that Brooklyn dojo Urban Martial Arts in some instances, running a home-based business demonstrates Ask for meeting objectives with her husband, Serge, no longer OF COURSE, it almost goes without “prudent” choices about what owners need and where they spend their in advance. e-mails endless files to herself and saying that saying no can also free up gets mixed up about which version is a lot of time. money. SO MANY TIMES you get to a meeting the most recent; she now pulls them Jennifer Prosek, founder of CJP Nonetheless, Mr. Rauch was initially disappointed with the terms, which and realize you’re not as prepared as from Dropbox when she tackles pa- Communications, a 70-employee included a $500 one-time fee, a $100 yearly service fee and an 8.25% you should have been or the other perwork from home in the evenings. financial communications and pub- interest rate. party is not as prepared. Now you “The great thing about it is it is lic relations consultancy, gets nu- “I asked if it was negotiable, and they told me, ‘You’re lucky to get a loan,’ ” have to schedule another one,” said so effortless,” she said. “It’s like sav- merous invitations to speak.But she Mr. Rauch said. He shopped for better terms at another bank but was Garrett Miller, president of CoTria, ing a document to your computer.” finds that it’s best to turn many turned away because his company was relatively new and he had no a company that advises companies down. relationship with the institution. in New York City and elsewhere on TIP FIVE “I’ve learned to separate the nice Mr. Rauch remains a fiscal conservative. “When I get paid, I dump the how to save time. Hire a personal assistant—on from the necessary,” she said. “I money right back into the account,” he said. “It’s a safety net.” If you avoid one hourlong meet- the cheap. have to separate the one or two I can —CARA S. TRAGER ing a week, you will recapture about do well during the course of the a week of productivity each year. RENT A SMILE (www.rentasmile.com) year.” Ⅲ

18 | Crain’s New York Business | January 10, 2011 20110110-NEWS--0019-NAT-CCI-CN_-- 1/6/2011 5:33 PM Page 1

REPORT SMALL BUSINESS NY Area’s Largest SBA-Guaranteed Loans Biggest loan approvals in fiscal 2010, ranked by total amount

SBA/CDC’s Third-party lender/ Third-party lender’s Borrower Total loan share of loan1 Borrower’s business certified development company1 share of loan

Transit $7,856,500 $3,503,000 Clothing store Zions First National Bank $4,353,500 SBA STARTS 1 Manhattan Empire State Certified Development Corp.

BACKING 161 St. Pharmacy Inc. $7,257,671 $2,000,000 Drugstore Chase Bank $5,257,671 LARGER 2 Manhattan Empire State Certified Development Corp. LOANS FragranceNet.com Inc. $6,567,491 $2,931,000 Health and beauty aids KeyBank $3,636,491 3 Deer Park, Suffolk County Empire State Certified Development Corp. THE SIGNING INTO LAW of the Small Business Jobs Act last Corona Hotel $6,075,000 $2,000,000 Hotel M&T Bank $4,075,000 September marked a 4 Corona, Queens Empire State Certified Development Corp. milestone for borrowers. The ceiling for SBA-backed Advance Pharmaceutical Inc. $5,644,000 $2,519,000 Pharmaceuticals Citibank $3,125,000 7(a) loans, which can be 5 Holtsville, Suffolk County Empire State Certified Development Corp. used for needs such as working capital, inventory Hindustan Granites Inc. $5,459,000 $1,639,000 Importer and distributor Herald National Bank $3,820,000 and refurbishing, was raised 6 Long Island City, Queens of natural stone tiles Empire State Certified Development Corp. to $5 million from $2 million; the limit for 504 Aldona Fire Protection Inc. $5,116,000 $2,000,000 Fire alarm, security Bank of America $3,116,000 loans, typically used for 7 Elmhurst, Queens and data systems Empire State Certified Development Corp. financing real estate or large equipment purchases, was Capri Optics Inc. $5,101,000 $2,000,000 Eyewear Chase Bank $3,101,000 Kensington, Brooklyn Empire State Certified Development Corp. increased to $5.5 million. 8 The SBA began accepting Brewster Plastics Inc. $4,803,000 $2,411,000 Plastics manufacturing Mahopac National Bank $2,392,000 applications for the larger Patterson, Putnam County Empire State Certified Development Corp. amounts in October. 9 “It gave us the ability to Vallo Transportation Ltd. $4,644,320 $2,000,000 School bus service Provident Bank $2,644,320 get more capital out to Whitestone, Queens Empire State Certified Development Corp. people and to get people the 10 right funding they needed,” Stellar Services $4,609,070 $1,535,000 Computer systems Chase Bank $3,074,070 said Pravina Raghavan, 11 Manhattan design services Empire State Certified Development Corp. director of the U.S. Small Business Administration’s P.J. 2035 NY Corp. $4,489,900 $2,000,000 Supermarkets Carver Federal Savings Bank $2,489,900 New York district office. 12 Huntington Station, Suffolk County Empire State Certified Development Corp. In New York City especially, she noted, the Be Well Primary Health Care Center $4,091,950 $1,639,000 Doctor’s office Zions First National Bank $2,452,950 higher limits can make the 13 Flatbush, Brooklyn Empire State Certified Development Corp. loans more useful to those undertaking costly real Melita Corp. $4,027,000 $1,841,000 Commercial bakery TD Bank $2,186,000 estate deals. 14 Mott Haven, Bronx Business Initiative Corporation of New York Although lenders in the SBA program aren’t obligated Juniper Valley Animal Hospital $3,772,020 $1,478,000 Veterinary services Meadows Bank $2,294,020 to make larger loans, Ms. 15 Middle Village, Queens Empire State Certified Development Corp. Raghavan’s office saw a trend toward bigger loan J & J Johnson General Contracting $3,613,000 $1,613,000 Construction Chase Bank $2,000,000 sizes in November. Overall 16 Long Island City, Queens Empire State Certified Development Corp. lending also increased since the jobs act went into effect: Dreamwork Medical PLLC $3,433,000 $1,533,000 Doctor’s office Chase Bank $1,900,000 In the southern 14 counties 17 Flushing, Queens Empire State Certified Development Corp. of New York, including the five boroughs, the SBA did Freedman Packaging Corp. $3,420,000 $1,500,000 Packaging Flushing Bank $1,920,000 $139.5 million worth of 18 East New York, Brooklyn Empire State Certified Development Corp. lending in October and November—53% more than Tutor Time of Lindenhurst $3,415,810 $1,500,000 Child day-care services M&T Bank $1,915,810 Lindenhurst, Suffolk County Empire State Certified Development Corp. in the same period a year 19 earlier. American Christmas Inc. $3,387,000 $1,362,000 Holiday design Wells Fargo Bank $2,025,000 “We’ll probably see a Mount Vernon, Westchester County and installation services Empire State Certified Development Corp. bigger spike this 20 upcoming year,” Ms. Dinas Distribution Corp. $3,298,000 $1,473,000 Importer and distributor Flushing Bank $1,825,000 Raghavan predicted. Jamaica, Queens of food and housewares Empire State Certified Development Corp. The largest SBA- 21 guaranteed loan in the New Energy Health and Fitness Corp. $3,007,000 $1,257,000 Fitness center Bethpage Federal Credit Union $1,750,000 York area in fiscal 2010 was 22 St. James, Suffolk County Empire State Certified Development Corp. smaller than the previous year’s. In 2009, the borrower Astoria Espresso & Cappuccino $2,982,000 $1,332,000 Equipment manufacturer Hudson Valley Bank $1,650,000 awarded the most money 23 Clason Point, Bronx Business Initiative Corporation of New York was boutique hotel Greenhouse 26, which took Country Floors $2,955,000 $1,320,000 Ceramic tiles Capital One Bank $1,635,000 out a loan of $13.4 million. 24 Manhattan and stones Empire State Certified Development Corp. In 2010, the top loan went to Transit, a clothing retailer, Hodedah Import Inc. $2,922,000 $1,422,000 Furniture New York Business Development Corp. $1,500,000 which borrowed almost 25 Canarsie, Brooklyn Business Initiative Corporation of New York $7.9 million. —ELAINE POFELDT The U.S. Small Business Administration’s New York district includes New York City and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan, Ulster and Westchester counties. Rankings are for the fiscal year ended Sept. 30, 2010. The top 25 loans were approved under the 504 loan program, which provides growing businesses with long-term fixed-rate financing for major fixed assets, such as equipment, land and buildings. 1-The certified development company listed for each loan is the CDC that handled the loan processing. source: u.s. small business administration

January 10, 2011 | Crain’s New York Business | 19 nb02p20-21cl.qxp 1/7/11 2:30 PM Page 20

EXECUTIVE RECRUITER PUBLIC & LEGAL NOTICES

Notice of Qualification of Morgan CHELSEA 100 GARAGE LLC, a Notice of Formation of PANTHER POSITIONS AVAILABLE Stanley HedgePremier/Millennium domestic Limited Liability Company EQUIP LP. Cert. of LP filed with Secy. USA II LP. Authority filed with NY (LLC), filed with the Sec of State of of State of NY (SSNY) on 12/16/10. Dept. of State on 11/8/10. Office NY on 12/9/10. NY Office location: Office location: NY County. Princ. location: NY County. Princ. bus. New York County. SSNY is designated office of LP: BCS Equip GP, Inc., addr.: 522 Fifth Ave., 13th Fl., NY, NY as agent upon whom process against 333 Seventh Ave., 3rd Fl., NY, NY 10036. LP formed in DE on 11/4/10. the LLC may be served. SSNY shall 10001. Latest date on which the LP NY Sec. of State designated agent mail a copy of any process against may dissolve is 12/31/2030. SSNY of LP upon whom process against it the LLC served upon him/her to designated as agent of LP upon may be served and shall mail Steinberg & Pokoik Management whom process against it may be process to: c/o CT Corporation Corp., 575 Madison Ave., 7th Fl., NY, served. SSNY shall mail process to System, 111 8th Ave., NY, NY 10011, NY 10022. General Purposes. the LP at the addr. of its princ. office. regd. agent upon whom process may Name and addr. of each general PLANET EARTH NEEDS YOU! be served. DE addr. of LP: 1209 JLOW LLC Articles of Org. filed NY partner are available from SSNY. Orange St., Wilmington, DE 19801. Sec. of State (SSNY) 6/7/2010. Purpose: Any lawful activity. Name/addr. of genl. ptr. available Office in NY Co. SSNY desig. agent from NY Sec. of State. Cert. of LP of LLC upon whom process may be Notice of Qualification of Global CHIEF BUSINESS OFFICER filed with DE Sec. of State, 401 served. SSNY shall mail copy of Demolition & Recycling, LLC. Federal St., Dover, DE 19901. process to c/o William J. Lavelle, Jr., Authority filed with NY Dept. of State GREEN SEAL, the most unimpeachable, widely respected, Purpose: any lawful activity. 81 Barrow St., NY, NY 10014. on 11/16/10. Office location: NY Purpose: Any lawful purpose. County. LLC formed in DE on environmental seal of approval organization, needs a Rondout Capital Management LLC, 7/14/04. NY Sec. of State designated CHIEF BUSINESS OFFICER (CBO). Reporting directly to Arts. Of Org.filed with SSNY on The Acadian Group LLC filed Arts of agent of LLC upon whom process 10/13/10. Off. Loc.: NY County, SSNY Org with the Secy of State of NY against it may be served and shall the CEO, the CBO will help run this nonprofit like a designated as agent of LLC upon (SSNY) on 7/2/2010. Located in NY mail process to: c/o CT Corporation whom process against it may be Co. SSNY has been designated as System, 111 8th Ave., NY, NY 10011, business. The CBO must have successful start-up served. SSNY shall mail a copy of agent upon whom process against it regd. agent upon whom process may experience and be an experienced deal maker with a process to: The LLC, 595 Madison may be served and SSNY shall mail be served. DE addr. of LLC: 1209 Ave. 35th/FL, New York, NY 10022. a copy of any process against the Orange St., Wilmington, DE 19801. fabulous rolodex. Personal remuneration cannot be an Purpose: to engage in any lawful act. LLC to princ. business address 304 Cert. of Form. filed with DE Sec. of Park Ave. So., 11th Fl., NY, NY State, 401 Federal St., Dover, DE issue, but giving back to the planet must be. The 19901. Purpose: any lawful activity. HOME 127 LLC, a domestic Limited 10010. Purpose: any lawful acts. organization is located in Washington, DC but you Liability Company (LLC), filed with K2 SPIRITS IMPORTERS, LLC, a the Sec of State of NY on 11/18/10. Notice of Formation of Gotham 149 must be located in New York and be ready to travel domestic Limited Liability Company NY Office location: New York County. Realty LLC. Arts. of Org. filed with (LLC), filed with the Sec of State of SSNY is designated as agent upon Secy. of State of NY (SSNY) on anywhere in the world to make a deal. If this sounds NY on 9/22/10. NY Office location: whom process against the LLC may 11/30/10. Office location: NY County. New York County. SSNY is desig- tailor made for you, please contact David Martin, be served. SSNY shall mail a copy SSNY designated as agent of LLC nated as agent upon whom process of any process against the LLC upon whom process against it may Managing Partner, Sterling Martin Associates at: against the LLC may be served. served upon him/her to The LLC, be served. SSNY shall mail process SSNY shall mail a copy of any 2080 Lexington Ave, Lobby, NY, NY to: c/o The LLC, 1430 Broadway, process against the LLC served 10035. General Purposes. Ste. 1103, NY, NY 10018. Purpose: [email protected] upon him/her to The LLC, 64 Fulton any lawful activity. St., Ste. 304, New York, NY 10038. Notice of Formation of 16 EAST 73RD General Purposes. Marketing Director, Developer Network STREET LLC. Arts. of Org. filed with Notice of Formation of MIKE’S (Elsevier, Inc., New York, NY). Must hold Secy. of State of NY (SSNY) on PIZZERIA & CAFE, LLC, a domestic REQUEST FOR 12/17/10. Office location: NY County. Notice of Formation of GOOD THURS- an MBA degree or the foreign equiv. & 1 LLC. Arts. of Org. filed with the SSNY SSNY designated as agent of LLC DAY LLC. Arts. of Org. filed with Secy. yr. of exp. performing strategic planning, PROPOSALS on 10/06/2010. Office location: NY of State of N.Y. (SSNY) on 10/21/10. upon whom process against it may County. SSNY has been designated corporate strategizing, & product dev. Office location: New York County. be served. SSNY shall mail process as agent upon whom process within the Science, Technology & Health to: c/o Brittany Management Corp., SSNY designated as agent of LLC against the LLC may be served. upon whom process against it may industry. Also req. is 1 yr. of exp. working 14 E. 73rd St., Ste. 1A, NY, NY 10021. SSNY shall mail a copy of process collaboratively in a matrix organization, Purpose: any lawful activity. be served. SSNY shall mail process to: 35 W. 36th St., NY, NY 10018. to: c/o Hirschen Singer & Epstein LLP, including leading cross functional teams; Purpose: Any Lawful Purpose. driving quantitative & qualitative analyses; 902 Broadway, 13th Fl., New York, NY Notice of Formation of Halo Capital 10010. Purpose: any lawful activity. & developing operation and technology VI, LLC. Arts. of Org. filed with Secy. Notice of Formation of ATTO, LLC. integration strategies. Must also possess of State of NY (SSNY) on 12/31/10. Arts. of Org. filed with Secy. of State publishing industry exp.: developing busi- Notice of Formation of O’Herron Office location: NY Co. SSNY desig- of NY (SSNY) on 12/15/10. Office Grandchildren’s LLC. Arts. of Org. ness strategies; commissioning business nated as agent of LLC upon whom location: NY County. SSNY filed with NY Dept. of State on plans for e products & developing online process against it may be served. designated as agent of LLC upon 12/10/10. Office location: NY County. products; & developing and executing go- SSNY shall mail process to: Joe whom process against it may be Sec. of State designated agent of to-market strategies for community driven Robinson, 832 Broadway #6, NY, NY served. SSNY shall mail process to LLC upon whom process against it initiatives for developers in the Science & 10003. Purpose: any lawful activities. c/o MontaguLaw, P.C., 1120 Ave. of may be served and shall mail Technology markets. Apply w/resume to: the Americas, 4th Fl., NY, NY 10036. process to the principal business Barbara Flannery, Elsevier, Inc., 600 Notice of Formation of a Limited Purpose: Any lawful activity. addr.: c/o Jonathan O’Herron, Technology Sq., 5th Fl., Cambridge, MA Liability Company (LLC): Name: Lazard, Freres & Co. LLC, 30 02139. No relo. available. No 3rd party EVENTUS PARTNERS LLC, Articles LEGEND FUTURES, LLC, a domestic Rockefeller Plaza, NY, NY 10020. responses. EOE. of Organization filed with the Limited Liability Company (LLC), filed Purpose: any lawful activity. Secretary of State of New York with the Sec of State of NY on (SSNY) on 10/22/2010. Office loca- 11/3/10. NY Office location: New York Notice of Formation of Renegade tion: New York County. SSNY has County. SSNY is designated as Nation Online, LLC. Arts. of Org. filed been designated as agent of the LLC agent upon whom process against with NY Dept. of State on 10/1/10. EVENT upon whom process to: C/O EVEN- the LLC may be served. SSNY shall Office location: NY County. Sec. of TUS PARTNERS LLC, 1583 1st Ave mail a copy of any process against State designated agent of LLC upon PUBLIC & Apt. 4C, New York, NY 10028. the LLC served upon him/her to The whom process against it may be Association of Real Estate Women Purpose: Any Lawful Purpose. Latest LLC, 45 Broadway, 32nd Fl., NY, NY served and shall mail process to the (AREW) Networking Cocktail Reception LEGAL NOTICES date upon which LLC is to dissolve: 10006. General Purposes. principal business addr. of the LLC: January 18th, 6:00-9:00 PM, Celsius in No specific date. 434 6th Ave., 6th Fl., NY, NY 10011. Purpose: any lawful activity. Bryant Park. Members: $120 Notice of Qualification of Inland Notice of Qualification of DYNAMIC Non-members: $150 Register: arew.org Diversified Real Estate Services LLC. Notice of Qualification of TIEDEMANN CREDIT ANALYTICS, LLC. Authority Authority filed with NY Dept. of State WEALTH MANAGEMENT GP, LLC. filed with Secy. of State of NY Notice of Qualification of Master on 12/6/10. Office location: NY Authority filed with Secy. of State of NY (SSNY) on 12/07/10. Office location: Money LLC. Authority filed with NY County. Princ. bus. addr.: 2901 (SSNY) on 12/21/10. Office location: NY County. LLC formed in Delaware Dept. of State on 11/15/10. Office Butterfield Rd., Oak Brook, IL 60523. NY County. LLC formed in Delaware (DE) on 09/25/06. Princ. office of LLC: location: NY County. Princ. bus. LLC formed in DE on 8/8/08. NY Sec. (DE) on 12/03/10. Princ. office of LLC: Attn: James K. Finkel, 1500 Broadway, addr.: 40 E. 52nd St., NY, NY 10022. Advertise on of State designated agent of LLC 520 Madison Ave., 26th Fl., NY, NY Ste. 1107, NY, NY 10036. SSNY des- LLC formed in DE on 8/29/02. NY upon whom process against it may 10022. SSNY designated as agent of ignated as agent of LLC upon whom Sec. of State designated agent of be served and shall mail process to: LLC upon whom process against it process against it may be served. LLC upon whom process against it www.crainsnewyork.com c/o CT Corporation System, 111 8th may be served. SSNY shall mail SSNY shall mail process to the LLC may be served and shall mail process Ave., NY, NY 10011, regd. agent process to Corporation Service Co., at the princ. office of the LLC. DE to: c/o CT Corporation System, 111 upon whom process may be served. 80 State St., Albany, NY 12207-2543. addr. of LLC: c/o National Registered 8th Ave., NY, NY 10011, regd. agent Call John Gallagher DE addr. of LLC: c/o The Corporation DE addr. of LLC: 1201 N. Market St., Agents, Inc., 160 Greentree Dr., Ste. upon whom process may be served. Trust Co., 1209 Orange St., Ste. 1406, Wilmington, DE 19801. Arts. 101, Dover, DE 19904. Arts. of Org. DE addr. of LLC: 100 Bellevue Pkwy., Wilmington, DE 19801. Cert. of Form. of Org. filed with Secy. of State of filed with Secy. of the State of DE, Wilmington, DE 19809. Cert. of @ 212-210-0189 filed with DE Sec. of State, 401 DE, Div. of Corps., John G. Townsend Corp. Dept., Loockerman & Federal Form. filed with DE Sec. of State, Federal St., Dover, DE 19901. Bldg., 401 Federal St., Dover, DE Sts., Dover, DE 19901. Purpose: Any 401 Federal St., Dover, DE 19901. Purpose: any lawful activity. 19901. Purpose: Any lawful activity. lawful activity. Purpose: any lawful activity.

20 | Crain’s New York Business | January 10, 2011 nb02p20-21cl.qxp 1/7/11 2:30 PM Page 21

PUBLIC & LEGAL NOTICES

Notice of Qualification of RealTick Notice of Qualification of 25 CSH Notice of Qualification of Goldman Notice of Qualification of ACE Bakery, Notice of Qualification of Ionic LLC. Authority filed with Secy. of OPERATING LLC. Authority filed with Sachs Investment Partners Private LLC. Authority filed with NY Dept. of Convertible Fund LLC. Authority filed State of NY (SSNY) on 12/09/10. Secy. of State of NY (SSNY) on Opportunities Holdings, L.P. Authority State on 11/18/10. Office location: with NY Dept. of State on 11/18/10. Office location: NY County. LLC 11/30/10. Office location: NY County. filed with Secy. of State of NY (SSNY) NY County. Princ. bus. addr.: 50 Office location: NY County. LLC formed in Delaware (DE) on LLC formed in Delaware (DE) on on 10/26/10. Office location: NY Maplehurst Dr., Brownsburg, IN formed in DE on 11/17/10. NY Sec. 11/19/10. Princ. office of LLC: 1633 11/24/10. SSNY designated as agent County. LP formed in Cayman Islands 46112. LLC formed in DE on 10/14/10. of State designated agent of LLC Broadway, 48th Fl., NY, NY 10019. of LLC upon whom process against it (CI) on 6/4/10. SSNY designated as NY Sec. of State designated agent of upon whom process against it may SSNY designated as agent of LLC may be served. SSNY shall mail agent of LP upon whom process LLC upon whom process against it be served and shall mail process to upon whom process against it may process to Irwin A. Horowitz, Esq., against it may be served. SSNY may be served and shall mail process the principal business addr.: 366 be served. SSNY shall mail process Hartz Mountain Industries, Inc., 400 shall mail process to: 200 West St., to: c/o CT Corporation System, 111 Madison Ave., 9th Fl., NY, NY 10017. to c/o Corporation Service Co. Plaza Dr., Secaucus, NJ 07096. DE NY, NY 10282. CI address of LP: 8th Ave., NY, NY 10011, regd. agent DE addr. of LLC: c/o The Corporation (CSC), 80 State St., Albany, NY addr. of LLC: RL&F Service Corp., c/o Walkers SPV Limited, Walker upon whom process may be served. Trust Co., 1209 Orange St., 12207-2543. DE addr. of LLC: c/o One Rodney Sq., 10th Fl., House, 87 Mary St., George Town, DE addr. of LLC: 1209 Orange St., Wilmington, DE 19801. Cert. of CSC, 2711 Centerville Rd., Ste. 400, Wilmington, New Castle Cnty., DE Grand Cayman, KY1-9002, CI. Wilmington, DE 19801. Cert. of Form. Form. filed with DE Sec. of State, Wilmington, DE 19808. Arts. of Org. 19801. Arts. of Org. filed with Secy. of Name/address of each genl. ptr. filed with DE Sec. of State, Federal & P.O. Box 898, Dover, DE 19903. filed with Secy. of State, DE Div. of State of DE, 401 Federal St., Ste. 4, available from SSNY. Cert. of LP Duke of York Sts., Dover, DE 19901. Purpose: any lawful activity. Corps., John G. Townsend Bldg., Dover, DE 19901. Purpose: Any filed with Registrar of Exempted Purpose: any lawful activity. 401 Federal St., Ste. 4, Dover, DE lawful activity. LPs, Elizabethan Sq., 4th Fl., Phase Notice of Formation of SIRIUS PRO- 19903. Purpose: Any lawful activity. Four, George Town, Grand Cayman, NOTICE OF FORMATION OF Lori DUCTIONS LLC. Arts. of Org. filed Notice of Formation of RUSTY CHIP, CI. Purpose: any lawful activity. Cannava Photography LLC. Article of with Secy. of State of NY (SSNY) on NOTICE OF FORMATION of Varick LLC. Arts. of Org. filed with Secy. Organization filed with the Secretary 10/24/02. Office location: NY Asset Management LLC. Arts of Org of State of NY (SSNY) on 11/23/10. NOTICE OF FORMATION of Aurum of State of NY (SSNY) on 11/03/10. County. SSNY designated as agent filed with the Secy of State of NY Office location: NY County. SSNY Options Strategies LLC. Arts of Org Office location New York County. SSNY of LLC upon whom process against (SSNY) on 9/23/10. Office loc: NY designated as agent of LLC upon filed with the Secy of State of New has been designated as agent upon it may be served. SSNY shall mail County. SSNY has been designated whom process against it may be York (SSNY) on 10/20/10. Office whom process against it may be process to: Susan Diane Freel, 37 as an agent upon whom process may served. SSNY shall mail process to location: NY County. SSNY desig- served. SSNY shall mail a copy of any King St., Ste. 5C, NY, NY 10014. be served and shall mail a copy of any Nancy H. Feinberg, 131 Prince St., nated as an agent upon whom process against the LLC served upon Purpose: any lawful activity. process to: 19 Beach St, #3 NY, NY #3, NY, NY 10012. Purpose: Any process may be served and shall him/her to the LLC, 405 W 49th Street 10013. Principal business address: lawful activity. mail a copy of any process to the 5E, NY, NY 10019. Purpose of LLC: to 17 State St., Ste 3800 NY, NY 10004. principal business address: One engage in any lawful act or activity. Notice of Formation of Dan’s Papers Holdings, LLC formed on 9/1/10, Purpose: any lawful acts. JOAN MERRILL LLC Articles of Org. North End Ave., Ste. 1207E, NY, NY 10282. Purpose: any lawful act. name amended to Dan’s Papers, LLC filed NY Sec. of State (SSNY) Notice of Qualification of Vita Nuova on 9/29/10. Articles of Org. filed with Notice of Formation of Renatus 12/15/2010. Office in NY Co. SSNY LLC. Authority filed with Sec. of State Secy. of State of NY (SSNY). Office Southgate LLC. Arts. of Org. filed desig. agent of LLC upon whom Notice of Qualification of KEENE of New York (SSNY) on 10/29/2010. location: NY County. SSNY designated with Secy. of State of NY (SSNY) on process may be served. SSNY CONSULTING ARIZONA LLC. Office Location: NY County. LLC as agent of LLC whom process 5/10/10. Office location: NY County. shall mail copy of process to 1435 Authority filed with Secy. of State of formed in CT on 5/21/1998. SSNY against it may be served. SSNY shall SSNY designated as agent of LLC Lexington Ave., Apt. 2F, NY, NY NY (SSNY) on 11/24/10. Office loca- designated as agent of LLC upon mail a copy of process to the LLC, upon whom process against it may 10128, which is also the principal tion: NY County. LLC formed in whom process against it may be 79 Madison Ave., 16th Floor, NY, NY be served. SSNY shall mail process business location. Purpose: Any Delaware (DE) on 11/09/10. SSNY served. SSNY shall mail process to 10016. Purpose: any lawful activity. to: c/o Alter Mantel, 90 Park Avenue, lawful purpose. designated as agent of LLC upon the LLC at its CT and principal busi- 35th Fl., NY, NY 10016, Attn: whom process against it may be ness address: 31A Jeremiah Road, Lawrence Hansen, Esq.. Purpose: Notice of Qual. of MREP VII-T H2, LLC, served. SSNY shall mail process to Sandy Hook, CT 06482. Arts. of Org. Notice of Qualification of WTC Tower 1 any lawful activity. Auth. filed Sec’y of State (SSNY) the LLC, P.O. Box 270, NY, NY filed with the Sec. of State of CT, 30 LLC. Authority filed with NY Dept. of 7/30/10. Office loc.: NY County. LLC 10021. DE addr. of LLC: c/o Trinity Street, PO Box 150470, State on 11/29/10. Office location: NY County. LLC formed in DE on 664 EIGHTH AVE 156 LLC, a org. in DE 7/28/10. SSNY desig. as Corporation Service Co., 2711 Hartford, CT 06115-0470. Purpose: agent of LLC upon whom process Centerville Rd., Ste. 400, Wilmington, any lawful activity. 9/2/10. NY Sec. of State designated domestic Limited Liability Company agent of LLC upon whom process (LLC), filed with the Sec of State of against it may be served. SSNY shall DE 19808. Arts. of Org. filed with Jeffrey W. Bullock, DE Secy. of State, against it may be served and shall NY on 9/21/10. NY Office location: mail copy of proc. to Attn: Felipe Notice of Formation of MW Products, 401 Federal St., #3, Dover, DE mail process to the principal business New York County. SSNY is desig- Dorregaray, 135 E. 57th St., 16th Fl., LLC. Arts. of Org. filed with NY Dept. NY, NY 10022. DE off. addr.: CSC, 19901. Purpose: Any lawful activity. addr.: The Port Authority of New York nated as agent upon whom process of State: 12/8/10. Office loc.: NY and New Jersey, 225 Park Ave. So., against the LLC may be served. 2711 Centerville Rd., Wilmington, DE County. Princ. bus. addr.: 49 W. 38th 19808. Cert. of Form. on file: SSDE, 15th Fl., NY, NY 10003, Attn: Darrell SSNY shall mail a copy of any Notice of Qual. of Dinvest Access 90 St., 2nd Fl., NY, NY 10018. Sec. of Buchbinder, General Counsel. DE process against the LLC served Townsend Bldg., Dover, DE 19901. (US) L.P. filed under the original name State designated agent of LLC upon Purp.: any lawful activities. addr. of LLC: 1209 Orange St., upon him/her to Registered Agents Dinvest Access 90, L.P., Auth. filed whom process against it may be Wilmington, DE 19801. Cert. of Legal Services, LLC, 1220 N. Market Sec’y of State (SSNY) 9/28/10. Office served and shall mail process to: c/o Form. filed with DE Sec. of State, St., Ste. 806, Wilmington, DE 19801. Notice of Formation of C&B 23RD loc.: NY County. LP org. in DE Aleena R. Shapiro, Esq., Hartman & 401 Federal St., Dover, DE 19901. General Purposes. STREET REAL ESTATE LLC. Arts. of 9/27/10. SSNY desig. as agent of LP Craven, LLP, 488 Madison Ave., NY, NY Purpose: any lawful activity. Org. filed with Secy. of State of NY upon whom process against it may 10022. Purpose: any lawful activity. Notice of Formation of 7E86 REALTY (SSNY) on 11/15/10. Office location: be served. SSNY shall mail copy of LLC. Arts. of Org. filed with Secy. of NY County. SSNY designated as proc. to 30 Rockefeller Plaza, 27th Fl., Notice of Formation of LB ONE LLC. Notice of Qualification of Honua Fifth State of NY (SSNY) on 12/15/10. agent of LLC upon whom process NY, NY 10122. DE off. addr.: CSC, Arts. of Org. filed with Secy. of State Avenue LLC. Authority filed with NY Office location: NY County. Princ. against it may be served. SSNY shall 2711 Centerville Rd., Wilmington, of NY (SSNY) on 12/10/10. Office Dept. of State on 5/22/07. Office office of LLC: 770 Lexington Ave., mail process to Corporation Service DE 19808. Cert. of LP on file: SSDE, location: NY County. Princ. office of location: NY County. Princ. bus. 18th Fl., NY, NY 10065. Latest date Co., 80 State St., Albany, NY 12207- Townsend Bldg., Dover, DE 19901. LLC: 482 Woodlands Rd., Harrison, addr.: c/o Cozen O’Connor, 277 Park on which the LLC may dissolve is 2543. Purpose: Any lawful activity. Name/addr. of each gen. ptr. avail. at NY 10528. SSNY designated as Ave., NY, NY 10172. LLC formed in 12/31/2035. SSNY designated as SSNY. Purp.: any lawful activities. agent of LLC upon whom process DE on 5/17/07. NY Sec. of State designated agent of LLC upon whom agent of LLC upon whom process Notice of Formation of 136 W. 136th against it may be served. SSNY shall against it may be served. SSNY Notice of Formation of NORTH PARK mail process to the LLC, c/o Donna process against it may be served and Street, LLC. Articles of Org. filed shall mail process to: c/o CT shall mail process to the LLC at the with Secy. of State of NY (SSNY) PRESERVATION GP, LLC. Arts. of Lagani at the princ. office of the LLC. addr. of its princ. office. Purpose: Org. filed with Secy. of State of NY Purpose: Any lawful activity. Corporation System, 111 8th Ave., NY, on 11/23/10. Office loc.: New York NY 10011, regd. agent upon whom Any lawful activity. Co. SSNY designated as agent of (SSNY) on 11/16/10. Office location: NY County. Princ. office of LLC: 60 process may be served. DE addr. of LLC upon whom process against it Notice of Formation of GRESA U.S.A., LLC: The Corporation Trust Co., 1209 Notice of Formation of Loventhal may be served. SSNY shall mail Columbus Circle, NY, NY 10023. LLC. Arts. of Org. filed with Secy. of SSNY designated as agent of LLC Orange St., Wilmington, DE 19801. Silver Manhattan LLC. Articles of process to the LLC, c/o ICER State of NY (SSNY) on 09/13/10. Office Cert. of Form. filed with DE Sec. of Org. filed with Secy. of State of NY Brands, LLC, 1385 Broadway, 16th upon whom process against it may location: NY County. Princ. office of be served. SSNY shall mail process State, 401 Federal St., Dover, DE (SSNY) on 06/02/2002. Office loc.: Fl., New York, NY 10018. Purpose: LLC: McElroy, Deutsch, Mulvaney & 19901. Purpose: any lawful activity. New York Co. SSNY designated as any lawful act or activity. to c/o Corporation Service Co., 80 Carpenter, LLP, 88 Pine St. - 24th Fl., agent of LLC upon whom process State St., Albany, NY 12207. NY, NY 10005. SSNY designated as Purpose: Any lawful activity. against it may be served. SSNY shall Notice of Qualification of FENSTER- agent of LLC upon whom process mail process to the LLC, c/o STOCK ASSOCIATES, LLC. Authority against it may be served. SSNY shall Alexander Hidalgo Inc., 135 West filed with Secy. of State of NY Notice of Qualification of Kilohana mail process to Alfred Wheeler Esq. 72nd Street, New York, NY 10023. (SSNY) on 12/10/10. Office location: Capital Management, LLC. Authority at the princ. office of the LLC. Place your Purpose: any lawful act or activity. NY County. LLC formed in Delaware filed with Secy. of State of NY Purpose: Any lawful activity. (DE) on 11/03/10. Princ. office of (SSNY) on 11/29/10. Office location: business card in App for Auth for 222 EAST 32ND LLC: 445 Lafayette St.. Apt. 15B, NY, NY County. LLC formed in Delaware Notice of formation of 42 LUDLOW STREET, L.L.C. filed with Sec. of NY 10003. SSNY designated as (DE) on 11/19/10. SSNY designated LLC a domestic Limited Liability State of NY (SSNY) 11/15/10. Off: agent of LLC upon whom process as agent of LLC upon whom process Company (LLC). Articles of Organization Crain’s Business loc: NY County. LLC formed in UT on against it may be served. SSNY shall against it may be served. SSNY filed with the Secretary of State on 11/12/10. SSNY designated as agent mail process to c/o Corporation shall mail process to: The LLC, 351 November 22, 2010, NY Office of LLC upon whom process against Service Co. (CSC), 80 State St., Saint Nicholas Ave., Ste. 31, NY, NY Location: New York County. Secretary Connections it may be served. SSNY shall mail Albany, NY 12207-2543. DE addr. of 10027, also the principal office of State is designated as agent upon process to The LLC, C/O Carleton LLC: CSC, 2711 Centerville Rd., Ste. address. Address to be maintained whom process against the LLC may W. Spaulding, 40 Wanderwood Way, 400, Wilmington, DE 19808. Arts. of in c/o National Registered Agents, be served. Secretary of State shall Call John Gallagher Sandy UT 84092. Arts. Of Org. filed Org. filed with Secy. of State of the Inc., 160 Greentree Dr., Ste. 101, mail a copy of any process against with UT Dept. Of Commerce, P.O. State of DE, Div. of Corps., John G. Dover, DE 19904. Arts of Org. filed the LLC served upon him/her to: 42 Box 146705, Salt Lake City, Utah Townsend Bldg., 401 Federal St., with DE Secy. Of State, 401 Federal Ludlow Street, New York, New York @ 212-210-0189 84114-6705. Purpose: any lawful act Ste. 4, Dover, DE 19901. Purpose: St., Ste. 4, Dover, DE 19901. 10002. Purpose: To engage in any or activity. Any lawful activity. Purpose: any lawful activities. lawful act or activity.

January 10, 2011 | Crain’s New York Business | 21 20110110-NEWS--0022-NAT-CCI-CN_-- 1/7/2011 8:35 PM Page 1

NY’S HYDRA-HEADED BUDGET MONSTER Nearly 70% of the state’s $78.2 billion operating budget is spent on Cuomo: Governor of Reinvention schools, labor and Medicaid ... Other $2.1B Continued from Page 1 risk will not agree to ethics, redis- guts school aid to help close a $10 Debt service $4.5B a short time, and then there are di- tricting and campaign finance meas- billion budget gap. minishing returns.” ures that make them vulnerable. But the new governor is making Contracts, supplies and other The last governor to enter office “I don’t see it happening any time progress with the state’s largest spe- nonpersonal services $4.9B Medicaid with big plans and a perceived man- soon,” said Mr. Smikle, who ran un- cial interest,the health care industry, $12.6B date from voters, Eliot Spitzer, successfully against a Democratic which he has asked to reinvent itself scored an early victory in 2007 by senator in Harlem last year. “You’re or face machete-style budget cuts. Local aid for health, mental health, getting business and labor leaders to trying to change rules of people who When Mr. Spitzer proposed a top- social services, higher education and transportation $14.1B agree on a long-sought workers’ have lived by a different standard for down Medicaid overhaul in 2007, School aid compensation bill. But within a very long time. No matter how the industry responded with an ad- $25.1B weeks, he was at war with the As- popular the governor is, no matter vertising barrage that destroyed the sembly over its appointment of a what mandate he rides in on,he can- governor’s approval rating and em- state comptroller and was feuding not impact ethics as long as the peo- powered legislators to defy him.This State employee salaries, wages with Senate Majority Leader Joseph ple subject to the laws are writing time, there will be no attack ads. and benefits $14.7B Bruno over just about everything. the laws themselves.” “The approach we have taken in Mr. Spitzer hit a wall. But many veteran Albany watch- the past was appropriate for those ... and costs are skyrocketing from last year’s level. ers predict the cynics will be proven circumstances,” said Kenneth Learning from the past wrong. Raske, president of the Greater +39% +30% +19% EAGER TO AVOID such mistakes, Mr. “There’s been a sea change in the New York Healthcare Association. Cuomo invited Assembly Speaker political climate that makes it in “Times have changed.” MEDICAID SCHOOL AID EMPLOYEE PAY AND will hit $20.9B will hit $31.6B BENEFITS will hit $17.5B Sheldon Silver and Mr. Bruno’s suc- everyone’s interest to get results,” He explained: “What is funda- by 2013-14 by 2013-14 by 2013-14 cessor, Dean Skelos, to deliver re- says Rory Lancman, a Democratic mentally different is that every New marks at his State of the State speech assemblyman from Queens.“At least Yorker, regardless of profession or last week. In his own remarks, the on the Assembly side, we all want to persuasion, knows the state is in HOW TO TAME THE BEAST governor praised lawmakers: “The go back to our constituents and show deep fiscal trouble. The governor is The state must restructure programs to produce long-term savings, but dysfunction of Albany, the gridlock results. We’re tired of going back to acting as gelling agent, coach and there are plenty of immediate efficiencies to be had. of Albany, the corruption of Albany, our constituents and having to an- cheerleader to pull all New Yorkers Here’s what and how NY could save: this is not the true story of the New swer for Albany’s dysfunction.” together to solve the problem.” York state Legislature. It’s not who For their part, the Republicans But time is short, and interests $3.5B ON MEDICAID we are, it’s not what we do, it’s not who took control of the state Senate entrenched. While savings from re- Cut the cost of long-term care, which accounts for 46% of Medicaid why we’re here. The New York state this month have a fiscal agenda sim- forms could take years to show up on expenses, by: Legislature is the best legislature, ilar to Mr.Cuomo’s,centered on op- the state’s bottom line, a balanced
requiring hospitals to provide palliative care = $1.2B historically, in the nation.” position to new taxes. However, budget is due April 1. Mr. Cuomo’s
But much of the governor’s agen- they will be asked to defend painful Medicaid task force,announced last prohibiting wealthy New Yorkers from hiding assets = $454M da clashes with legislators’ interests. budget cuts, something they happi- week, has about a month to present
requiring New Yorkers eligible for both Medicaid and Medicare to enroll His proposed budget cuts and tax ly avoided during two years in the a plan to legislators. in managed care = $320M cap will hit schools in their districts. minority, and to give ground when Experts note that the state has Cut reimbursement rates to hospitals and nursing homes to national He will likely try to slash their dis- Mr. Cuomo asks them to approve tried to revamp Medicaid for a long norms (after adjusting for cost of living and number of patients) = $860M cretionary funds, typically $170 gay marriage, forsake discretionary time, almost since the program Bundle payments to hospitals = $620M million a year. His opposition to ex- funds and close upstate prisons. started. “We’ve never been success- tending an income tax surcharge on “Having returned to majority ful,” said Howard Berliner, chair- $2B ON LABOR high earners is ruffling feathers status,they are going to have to work man of the Department of Health Don’t fill 16,000 projected open positions this fiscal year = $800M among Democrats. He’s demand- toward some compromises,not all of Policy and Management at the Freeze wages = up to $400M ing reforms that will lead to more se- which are going to be comfortable School of Public Health, SUNY Increase cost-sharing on health premiums to 20% for individuals, 30% for vere punishment for lawmakers’ for them politically,” said Republi- Downstate Medical Center. The families and 50% for retirees = $581M ethical lapses, will reveal their out- can strategist Jonathan Greenspun. pattern has been that the governor Phase in defined-pension contributions for 10% of the work force by 2013 side income and will make it easier Mr. Cuomo must win over not asks for a large cut,“legislators agree = $194M for insurgent candidates to unseat just legislators but special interests. to half of that, and everyone calls it them. He is trying to cut public employees’ a day. I’d be very surprised if [this $1.5B on EDUCATION Mr. Cuomo’s agenda has won benefits and freeze their salaries,but year] is anything different.” Cut per-student aid to the wealthiest 136 school districts by half = $1.1B widespread praise, but Mr. Smikle is faces opposition from their unions. Consolidate administrative functions = up to $365M pessimistic because lawmakers who Teachers unions object to his prop- With additional reporting by Barbara Sources: Citizens Budget Commission, Empire Center for New York State Policy, New York State Health Foundation, do not perceive their seats to be at erty tax cap and will howl when he Benson. Office of the New York State Comptroller, NYS Division of the Budget, published reports

He temporarily silenced the ment on the other side, as well. The political director. “Figuring out a Biz fills its war chest Working Families Party by accepting Civil Service Employees Associa- smart way to do it is a much more de- their ballot line last November in ex- tion,which seemed headed toward an sirable approach than to get into a change for its support of his legisla- early showdown with Mr. Cuomo, is fight over reimbursement rate cuts.” Continued from Page 1 need to hold the line on spending and tive priorities. Hospital lobby and ready to work out an agreement.Pres- But things can change fast in Al- neth Adams, president of the Busi- taxes and make some cuts.” health care union leaders have been ident Danny Donohue was appoint- bany.There’s an eternity—and a $10 ness Council of New York State. appointed to a gubernatorial Medic- ed to a state commission to examine billion gap to fill—before the state’s “We’re building a war chest to have Trying a unified approach aid Redesign Team tasked with iden- unfunded government mandates. April 1 budget deadline.That hole is the resources so we can do advertising BUSINESSES IN THE CITY and state have tifying savings, which at least delays unlikely to be plugged without deep and communicate this message across tried to unite in the past, but self-in- their entry into any budget fight.And Labor holds fire cuts in education and health care.La- the state that these reforms have to terest has thwarted their effective- the new governor capitalized on a “WE RECOGNIZE the state is in a worse bor groups are expected to demand an happen now.” ness.A unified approach is more like- split in organized labor that resulted place today than it was four years extension on the tax for people earn- Shortly after the November elec- ly this time, however, with Mr. in the Building and Construction ago,” a CSEA spokesman said. “We ing more than $200,000 a year. Mr. tion, groups including the Business Cuomo taking the lead and public Trades Council of Greater New York want to see this new governor suc- Cuomo has vowed not to raise taxes. Council, Real Estate Board of New unions on the defensive nationwide. joining the committee. ceed. We don’t want him to succeed And his business supporters know York, Partnership for New York City “Andrew brings command and With 62% of the statewide vote at our expense, but we’re willing to that despite Mr. Cuomo’s careful and Syracuse-based CenterState control to the table,”a veteran Demo- and outrage about government do our part.” plotting, a battle might ultimately be Corporation for Economic Oppor- cratic strategist said.“If the governor’s spending further swaying public New York State United Teachers necessary.The CSNY is still moving tunity formed CSNY as a nonprofit people call you, if the governor tells opinion his way, Mr. Cuomo has the has launched an ad campaign celebrat- forward with its plan to run ads and permitted to lobby and participate in you to do it, everyone has to do it.” upper hand. CSNY initially expected ing teachers but is also expressing its mobilize citizens across the state. political campaigns.It has drafted fis- The Committee to Save New to start using its $10 million arsenal to willingness to compromise.“NYSUT “Our job is to be prepared,” said cally minded stalwarts such as former York is just a piece of Mr. Cuomo’s air political ads by mid-January, but recognizes that the state’s fiscal prob- Mr. Adams of the Business Council. state Comptroller H. Carl McCall meticulously calculated strategy to the governor’s strong position makes lems are real,” a spokesman said. Labor is ready, too, even as nego- and investment banker Felix Rohatyn defang opponents of his plan to freeze a later launch more likely. Health care workers,who perfect- tiations continue. and has hired public relations firm worker pay and chop billions from “If nobody is bashing and trashing ed the advertising and organizing “We can pivot on a dime,”said Mr. Dan Klores Communications. health care and education spending. this governor, as they have others in blitzes the business community is try- Finnegan of 1199. “It wouldn’t take “The goal is to get the message Unlike Eliot Spitzer, who tried to the past, then that affects how we go ing to replicate,decided that this time more than four days for us to be up on across to the people of New York state steamroll the health care industry and forward,” said CSNY consultant negotiating is the best first move. the air [with ads]. We can go toe-to- that we can’t live beyond our means,” its unions immediately upon taking William Cunningham, a former top “Given the fiscal reality, we know toe with the Committee to Save New said Steven Spinola, president of the office,Mr.Cuomo has sought a more aide to Mayor Michael Bloomberg. they’re going to be cutting Medicaid,” York, and we wouldn’t shy away from Real Estate Board of New York.“We collaborative and tactical approach. The guns are holstered for the mo- said Kevin Finnegan, 1199 SEIU’s it if we have to.” Ⅲ

22 | Crain’s New York Business | January 10, 2011 20110110-NEWS--0023-NAT-CCI-CN_-- 1/7/2011 7:18 PM Page 1

Tech’s call in NY: Veni, vidi, VC Fro-yo melt down

Continued from Page 3 That’s a fifth as much as firms in Sil- Crain’s last week via e-mail. He Continued from Page 2 Mango USA founder Dan Kim. He tech boom,for instance,Mr.Wilson icon Valley, for those who wonder if wouldn’t comment on speculation on 23rd Street and Fifth Avenue added that the company is concen- turned a $3.5 million investment in the city is challenging the California that he passed on Twitter’s latest and now has only two city spots. trating on a self-serve model to ap- a Web community called Geocities hub for VC dominance. Still, local round of fundraising, which last Melt,a mall-based gelato chain that peal to consumers eager for a wider into an epic $500 million score. Of VCs say the gap is narrowing and month valued the micro-blogging came on the market in 2008 with variety of flavors. course, for every gusher there are startups in such areas as financial concern at $3.7 billion, scant rev- half a dozen planned sites,shuttered Experts said self-serve,a business dozens of dry holes, and many VCs services, advertising and data analy- enue notwithstanding. its sole store here in late 2010, at the model used by locally based chain 16 spent the last half of the past decade sis have caught the attention of the same time the Upper West Side’s Handles and the West Coast’s Yo- begging investors not to lose faith. biggest players. Further stoking the Cheaper startups Peaches bid adieu. YogurBerry, a gurtland, could be a cost-saving The current resurrection comes excitement, Google agreed last ROGER EHRENBERG, managing part- Korean franchise, operated a space measure. It employs less staff, and on the back of the rebounding stock month to pay $1.9 billion for new ner at IA Ventures in Manhattan, in trendy Williamsburg, Brooklyn, the concept can exist within a larger market, which gives pension funds headquarters space in Chelsea, said VC funds are generally much for barely a year before it was re- venue, such as a deli, cafeteria or and other traditional VC backers while NVCA data show that the smaller and are putting less money placed by a nail salon. gym.But they warned that a move to more money to invest because their number of VC deals grew three at risk than during the dot-com Low-calorie dessert veteran Tasti self-serve can dilute a brand, which holdings are worth more. At the times faster in New York than in Sil- bubble, in part because it costs sig- D-Lite was an early casualty of the loses the image of luxury and the same time,the explosion in new me- icon Valley through the first nine nificantly less to launch a tech start- fro-yo wars. The company’s city higher visibility of its own locations. dia outfits and emergence of new gi- months of last year. up now. He now has $50 million to store count shriveled last year by ants like Facebook is creating excite- “Many of the major VC funds invest in companies trying to mine 37%, to 26, according to the Center To serve or not to serve ment unseen since the rise of have opened offices in New York, or valuable information from the tor- for an Urban Future, as consumers “SELF-SERVE is the death knell,” said Google.The improving climate also are here routinely,” said David S. rent of data collected on the Web. jumped on the newer treat that pro- Mark Kapnick, a senior managing means it’s possible for VCs to cash Rose, managing partner at Rose “We haven’t found unrealistic motes itself as a healthier option. director at Robert K. Futterman & out their holdings,primarily by sell- Tech Ventures. valuations in the areas we focus on,” Tasti D-Lite,which is revamping its Associates who represented ing them to other companies. In All the action has some people in- said Mr. Ehrenberg, who in the past image under new ownership, said Pinkberry in most of its lease trans- fact, more VC-backed companies evitably wondering if another VC has backed such companies as Bit.ly the shops were shuttered due to lease actions. “You’ve lost track of your were sold last year than at any time bubble has already emerged. The and job searcher TheLadders.com. expirations or unfavorable licensees. main focus.” since 1985,according to the NVCA. worriers include Mr.Wilson,who in At this hopeful moment,perhaps Though Red Mango has taken 16 Handles, for one, said the addition to hitting home runs with the people most certain to be disap- its lumps,the chain isn’t throwing in strategy is working. The 3-year-old A 30% spike in investment Geocities in the last boom struck out pointed are those expecting to see the towel here.It is planning to open chain has five Northeast stores and THE VIRTUOUS CYCLE also means VC with Kozmo.com and Inside.com. Mr. Wilson later this week at the two locations in coming months, is opening three more shops this firms are spending more—investing In a November post on his blog, he Soho Grand meet-up. Alas, Mr. and it will set up shop within March, including an outpost on the about $17 billion in startups through warned that “competition for ‘hot’ Wilson rarely appears at such Xtreme Gym in Hanover Square. Upper West Side. the first nine months of last year, deals is making people crazy.” events. In fact, he will be at a dinner “We were unable to favorably re- “Self-serve offers people a 30% more than a year earlier,accord- “We are in a period where in- party on Wednesday. new the leases for some of our loca- choice,” said founder Solomon ing to Thomson Reuters data. vestors in the Web sector are focused Parties at the bar “are for the tions in Manhattan, and as a result Choi, noting that New Yorkers of- A full $1.3 billion was deployed more on the upside and not enough community members to meet each of exorbitantly high rents, we were ten get impatient waiting for an em- by New York-based VC firms. on the downside,” Mr. Wilson told other,” he e-mailed, “not me.” forced to close these units,”said Red ployee to serve the dessert. Ⅲ

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January 10, 2011 | Crain’s New York Business | 23 20110110-NEWS--0024-NAT-CCI-CN_-- 1/7/2011 7:18 PM Page 1

Workers’comp fiasco

Continued from Page 1 The trusts held the promise that guard, and maintained shadowy if businesses could work together to corporate structures that went un- improve safety conditions, they noticed by the state workers’ com- could lower their workers’ compen- pensation board charged with regu- sation costs. The danger, of course, lating a booming industry. was that the opposite could occur. If By the time the board caught on, injuries increased, their costs would it was too late. CRM’s eight trusts go up.Either way,the firms would all were insolvent. be responsible—a concept known as Though this was not the first joint and several liability, which time a trust had gone bankrupt— would come back to haunt every seven run by other companies went business that signed on with CRM. GONE, BUT NOT FORGOTTEN: belly-up in 2006 and 2007—the size Mark Teich owes of the CRM insolvency dwarfed Ripe for conflict $87,000 for anything that came before it. liabilities related to Today,the state faces a crisis in its THE MEN WHO LAUNCHED CRM were Compensation Risk group self-insured workers’ com- themselves small businessmen en- Managers, according pensation trusts, which have a joying comfortable suburban lives. to New York state. shortfall of at least $600 million. A President Daniel Hickey Jr. had full 82% of that deficit is attributa- previously worked at Hickey-Finn ble to CRM, whose sudden collapse & Co., his dad’s insurance agency in left business owners feeling duped. Poughkeepsie. Chief Executive

“I think it’s reasonable to expect Martin Rakoff was already in the in- buck ennis our government—in exchange for surance trust business. He had considerable taxes—to protect us launched Consolidated Risk Ser- solvency of its trusts. the CRM trusts were insolvent. group self-insured trusts industry. from scams and fraud such as that vices in 1996,and Mr.Hickey helped CRM engaged in practices that In 2006, seven years after CRM Today, only about 4,000 employers perpetrated by CRM,” said another supply him with members, in ex- looked like those of a Ponzi scheme, first showed up on the New York participate. And while there’s cur- affected business owner, Jerry change for a commission. In 1999, according to accountants’ reviews. scene, state regulators took over the rently enough money to pay work- Hahn, president of computer furni- they teamed up to form CRM. The company took cash paid by em- trusts and began shutting them ers’ claims, as of last summer, only ture maker TBC Consoles Inc. in Like successful companies in any ployers one year to cover deficits down. Mr. Rakoff left the firm in $33.8 million of the estimated Edgewood, L.I. industry,CRM won business by un- from the previous year.CRM avoid- December of that year, but not be- shortfall had been collected. Far from protecting the 4,500 derpricing competitors’ premiums. ed scrutiny by rarely—if ever— fore collecting a $3.3 million sever- New York-based small businesses in For example, Frank Budwey, holding general membership meet- ance package. the CRM trusts—some 900 of who owns two supermarkets in the ings for trusts, though it was None of CRM’s current or for- New York’s missteps which are located in New York Buffalo area, saved $40,000 in pre- required to by law, and by control- mer executives would comment for JOHN GIARDINO, an attorney for 400 City—the state is holding them re- miums over five years when he ling the trustees charged with over- this story. Nor would representa- of the small businesses in the CRM sponsible. joined a CRM-managed trust. seeing management. tives from the state’s attorney gener- trusts, says his clients shouldn’t be Mr.Teich thought he had washed CRM earned management fees A review conducted last May by al’s office or the workers’ compensa- targeted by the state because of its his hands of CRM. But last year, he based on the number of employees accounting firm Lumsden & Mc- tion board. inability to oversee an industry that got a notice from the state saying he in the trusts and the value of premi- Cormick showed that the trustees of nearly tripled in size in the eight owed $87,000 to cover his share of ums. In an unusual twist, however, the manufacturing industry trust,ap- years CRM operated. the liabilities. Mr. Hahn’s bill came CRM’s fees were linked not to the pointed to act as independent mon- State comes calling “These programs were approved to $350,000. Business owners were premiums that employers paid, but itors, were handpicked by the very SOON AFTER THE STATE took over, it by the state, monitored by the state; told that if they failed to pay, they to an industry benchmark. This CRM managers they were supposed sent letters to members saying that the state published reports every year would face a 22% penalty and a law- meant CRM could offer discounts to oversee. One of the trustees was because of joint and several liability, about the adequacy of funding for the suit filed by the state attorney gen- to companies with poor safety Mark J. Bottini, an owner of CRM. they—not the state—were respon- trusts,” said Mr. Giardino, a lawyer eral’s office seeking to bar them records and heavy claims without Additionally,some individuals were sible for making the trusts whole. with Phillips Lytle. “They were the from doing business in New York. affecting its revenue. named as trustees but were never Jerry Hahn’s share came to $40,000. regulators. And they failed.” The battle lines were drawn. According to Christopher Ro- told that they had been appointed. Frank Budwey’s was $88,000. Mr.Giardino says the state made Threats of countersuits quickly fol- setti, an accountant at BST Valua- The state’s lawsuit—in which After the state asked independ- a number of bad decisions after it lowed. A resolution in the near fu- tion, Forensic and Litigation Advi- the word fraudulent appears a dozen ent auditors to review the bankrupt discovered the insolvencies. The ture is unlikely unless Gov. Andrew sors, which would eventually review times—alleges that CRM used an- trusts, however, they concluded that first was revoking CRM’s state in- Cuomo steps in. CRM’s operations, this practice put the deficits were much larger than surance license,rather than institut- Audits and court filings reviewed the trusts at risk. originally thought. What was ini- ing better management controls. by Crain’s New York Business tell the “There’s no incentive to make CRM’s practices tially suspected to be a $178 million That would have allowed the funds story of a good idea gone bad, one sure worthy candidates join the deficit is now projected at $600 mil- needed for claims payments to keep that led to the boom and bust of an trust,” Mr. Rosetti said. resembled a lion—a number that is expected to flowing into the trusts, he notes. industry and cast a pall over thou- CRM saw spectacular growth. grow even further when forensic au- Also, the state waited a year be- sands of small businesses whose From 2001 to 2007, the company Ponzi scheme, dits of the seven non-CRM trusts fore suing CRM, losing valuable owners believe they’ve been victim- collected at least $70 million in fees, are completed. time to recoup money. New York ized not once, but twice. according to the state’s lawsuit.The accountants say The figure represents the amount sued for $405 million. But a pro- company completed an initial pub- that the state will have to come up posed settlement announced last fall lic offering on the Nasdaq in De- with to pay the medical claims and would yield just $41 million, of Promise gone sour cember 2005 that valued CRM at lost wages for workers injured on the which only $11 million would be in WHEN CRM entered the workers’com- $175 million. But its lax member- job between 1999 and 2007,accord- cash. The company has changed its pensation business in 1999,a total of ship requirements and the steep dis- other firm owned by Messrs.Rakoff ing to actuaries’ estimates. Messrs. name to Majestic Insurance,but two 6,614 employers participated in counts it offered eventually meant and Hickey to provide claims man- Hahn’s and Budwey’s debts keep men named in the state’s lawsuit re- group self-insured trusts statewide. that as workers got injured on the agement,independent medical eval- growing; Mr. Budwey is now ex- main with the firm. The trusts, which have been around job, the fund did not have enough uation and medical billing services to pected to pay close to $400,000. So far, none of the executives at for decades, are not insurance in the money to pay the claims that were the trusts.The executives employed “We’re struggling with the re- CRM has been charged with a classic sense. Employers do not pay projected to mount up. yet another company they owned to cession and trying to keep things crime. Daniel Hickey Jr. left the an insurance company a premium to Store operator Mr. Budwey real- provide reinsurance to the trusts at going, and then to get hit with a company in March 2009 with a sev- shoulder risk. ized that the savings he’d achieved above-market rates. CRM also used $350,000 bill?” Mr. Hahn said. “It’s erance deal worth $3.3 million, Instead, businesses within simi- were illusory when he got a letter a brokerage company owned by one devastating.” while business owners like Mr.Hahn lar industries—like transportation, from CRM in 2007 saying that he of its founders, Daniel Hickey Sr. Mr. Hahn sent the state $10,000 have been left holding the bill. health care, manufacturing, govern- owed $17,000 to cover his share of The state made annual reviews of as a “good faith gesture.” Then he They have been told by the state ment, retail and even cemeteries— the trust’s costs.The next year,CRM whether each trust was adequately hired a lawyer. He has no plans to that it will sue them and assess fur- formed insurance funds out of said he needed to pay $80,000. funded. But it did so based on the pay a penny more. ther penalties if they do not agree to which they would pay workers’ “That’s when I was made aware audited financial statements provid- Meanwhile, the state is using its pay 50% of their assessments. But claims. Outside administrators, that a lot of things didn’t make ed by CRM—statements that were authority to collect money from sol- the state has not yet put a cap on the such as CRM, are responsible for sense,” Mr. Budwey said. based on “questionable data” that vent trusts. Scores of organizations size of the companies’ liabilities. making sure the companies they let As several independent re- CRM gave its actuaries and ac- have responded by shutting down “Workers’ comp insurance is into the trusts have similar work- views of CRM’s operations later countants, a state report on the their trusts and suing the state to mandated and overseen by the state place safety records. They are also showed, the company was fraught trusts says. It wasn’t until the work- make sure the trusts’ money is used to protect workers and their compa- responsible for setting premiums with conflicts and mismanagement ers’ compensation board conducted to pay the claims of their workers. nies against catastrophic loss,” Mr. high enough to cover claims. that led to—and obscured—the in- its own audits that it discovered that The crisis has decimated the Hahn said, “not create it.” Ⅲ

24 | Crain’s New York Business | January 10, 2011 20110110-NEWS--0025-NAT-CCI-CN_-- 1/7/2011 12:27 PM Page 1

10.2% Projected unemployment rate for NYC in 2011 BUSINESS LIVES Source: Independent Budget Office

HOT JOBS EXECUTIVE INBOX Anne Fisher POLITICAL DIRECTOR ORGANIZATION Hotel Trades Council Is compromise JOB DESCRIPTION Running the political operations of the hurting your hospitality workers union business? MOST IMPORTANT TASKS Mobilizing the union’s 30,000 WHEN IT COMES to negotiating, members to support candidates most of us buy into the notion for city and state offices; devel- that “win-win” is the best oping public policy campaigns to approach: Compromising a little, advance the union’s goals especially when times are tough, CREDENTIALS NEEDED An will lead to an agreement that understanding of labor unions; works for both sides. Right? experience on union and/or Actually, no. According to Jim political campaigns Camp, CEO and president of SALARY Based on experience Cleveland-based coaching and RECRUITER Internal training firm Camp Negotiation DOWNSIDE Long hours; filling the Systems, lots of entrepreneurs shoes of Neal Kwatra, who built compromise too much, which the political operation into a damages their companies. powerhouse In his latest book, No: The UPSIDE Access to top players at Only Negotiating System You all levels of government Need for Work and Home, Mr. Camp spells out his approach to In recent years, the Hotel Trades Council has transformed its deal making, which is used by political department from one FBI hostage negotiators and that largely played checkbook taught at Harvard Business politics into one whose members School and New York University’s became the most sought-after Stern School of Business. ground troops in any political His main idea is disarmingly campaign. simple: Instead of sitting down to —DANIEL MASSEY NICE WORK: Scores make a deal with the assumption manager Edward that you’ll have to settle for only a Norwick regularly part of what you really want (or works past 4 a.m., but he isn’t complaining. need), stick to your guns. When EXECUTIVE MOVES the other party proposes that you

buck ennis back down, say no. CBS 2 News: Rob “It’s about being the best at Morrison, 42, was GOTHAM GIGS what you do, telling the truth and named co-anchor of delivering on your promises,” the weekday editions says Mr. Camp. of CBS 2 News This Morning. He Being too accommodating is previously anchored a quagmire, he says. Let’s CBS 2 New York’s He Scored This Job suppose you woo a new client by weekend morning and evening agreeing to slash your fees. newscasts. Halfway through the contract, JUST DON’T CALL IT A STRIP CLUB Grant Thornton: Michael Monahan, 43, , says Edward Norwick, manager you’re running out of money. joined the accounting, tax and business ‘There’s of Scores. “This is a gentlemen’s club,” he insists. After acquiring the advisory organization as executive Respectfully decline to cut director in the higher education and not a guy brand name two years ago, I.M. Operating Co. revamped the West your prices in the first place. “Tell not-for-profit industry practices. He Side nightspot and took it upscale.The well vodka is Grey Goose, the client, ‘Look, I’d rather not most recently served as a senior in New take on this business than fail consultant at Towers Watson as the not- the restaurant is a Robert’s Steakhouse, 30 plasma-screen TVs line you by being unable to deliver for-profit, higher education and health York who the walls and two elevated stages feature “female entertainment.” ¶ first-rate service at a cut-rate care industry executive compensation price,’ ” Mr. Camp says. “Then practice leader. Mr. Norwick, 60, usually works until at least 4 a.m., outlasting Dumbo Improvement doesn’t colleagues half his age. It’s a grueling schedule, but the former say, ‘When one of our cheaper District: Alexandria restaurateur and catering hall manager isn’t complaining. “I’ve got competitors craps out on you, call Sica, 30, was want my us. We’re used to picking up the appointed executive booze, boobies, sports and steak right in front of me,” he said. pieces.’ ” Clients’ usual response, director of the job’ “There’s not a guy in New York who doesn’t want my job.” ¶ When he says, is to “meet your price— nonprofit your real, realistic price.” organization. She was the Long Island native decided to switch to gentlemen’s clubs 10 previously senior years ago, he had a heart-to-heart talk with his 12-year-old daughter, Of course, for this to work, Mr. adviser for the Access to the Region’s Camp notes, “you have to be the Core tunnel project at the Port who asked if he would let her work in a club like that if she wanted best. You have to live up to your Authority of New York and New Jersey. to. “What can you say? You can’t be a hypocrite,” Mr. Norwick said. own PR.” Hudson City Bancorp: Denis J. Salamone, “But she’s 22 now and has decided that she doesn’t want to work in a 57, was appointed president of the WHAT NEGOTIATING techniques work financial institution. He was most club—she’d rather run one.” best for you? Tell us at www. See EXECUTIVE MOVES on Page 26 —hilary potkewitz crainsnewyork.com/execinbox.

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RÉSUMÉ REVIEW Winning at the match game Is your job search all it could be? We ask the experts. Longtime dating pro My seventh-grade best friend. I get into the fame game. NAME BRIAN J. FARLEY fixed her up with one of the boys at a SUMMARY survives breakup, church dance.They had a very strong Tell me about the best date you’ve ever Financial analyst providing guidance to connection and dated for two years. had. prevent budget overruns unlovable New Yorkers My brother-in-law fixed me up,and Why did you decide to tape season four I had no expectations. I thought, PROFESSIONAL EXPERIENCE BY ALIX STRAUSS in New York? “I’ll never marry him,” so I had a Pfizer Inc., 2001-2010 I’m from the East Coast. Bravo is good time and let myself go. I did Financial analyst, enabling functions finance, 2009-2010 ATTI STANGER returned to her cheap and didn’t want to do it,but everything against my rules and got Performed annual budget/forecast development, monthly business East Coast roots to shoot sea- I persisted. drunk on tequila. We had great objects financial reporting, variance analysis, decision support, balance- son four of her Bravo show, conversation and made out on sheet account reconciliation and month-end close activity The Millionaire Matchmaker. This was a tough season for you. the dance floor. Financial analyst, corporate services and facilities, 2001-2008 PA third-generation cupid, who turns Why? Brooklyn College, 1993-2001 50 this year, the brash dating maven New York people are very Name your greatest conundrum. Budget specialist/assistant director of budget and purchasing found herself single in the city when picky and high-mainte- Why do we attract who we Prepared annual budget request; developed departmental/divisional she broke off her engagement to real nance. It’s not enough attract, and how do we financial summary estate exec Andy Friedman.After her that you’re good- attract better people? Montefiore Medical Center, 1992 less-than-love looking and went to Staff accountant, special funds affair with Yale; they want you What did you fall in Grant reporting New Yorkers to cure cancer. The love with while in New Empire Blue Cross & Blue Shield, 1989-1992 MOVERS & and their “un- people were not attrac- York? Auditor SHAKERS realistic” dat- tive and didn’t take care The Waverly Inn’s mac Oversaw Blue Cross and Medicare audits for reimbursement to hospitals ing wish lists, of themselves. And the bit- and cheese.Original Ray’s and nursing homes she was eager terness was overwhelming. Pizza. The frozen yogurt at Patti to get back Bloomingdale’s 40 Carrots. EDUCATION home to L.A. Why do you believe everyone is I’m also a Carmine’s freak. Manhattan College, M.B.A., general management; B.S., accounting Stanger Her show’s better off attached? Résumé appears in condensed form. season finale I believe in Noah’s ark: two by What’s up next? airs Jan. 11. two. I think there’s more than I’ll be doing season five in Los EXPERT ADVICE one soulmate in life, and being Angeles, but I’m putting my Brian quantified in order to demonstrate how he added value, but What does it mean to be a third- single is lonely. personal life first. I’ll be pro- “extensive experience” doesn’t speak to the fact that he has worked in generation matchmaker? ducing and acting, and I might multiple sectors. He should delete the “computer proficiency” section and God isn’t letting you out of this oc- What’s it like for you to be single cut an album. My screenplay, instead specify how he used technology to achieve results. cupation. My mom and grand- again? Become Your Own Matchmaker, —jason levin, district manager, Vault.com mother did it for free. They learned It sucks. We all want to find has been optioned. My cook- the tricks of the trade and passed love. … I’m using every avenue book,Mancatcher Meal,should be To contact this candidate or to be featured in “Résumé Review,” e-mail us them down to me. I can. I’m hiring a matchmak- out next year, and my DVD, How at [email protected]. er. I can’t really go online. There to Get Married in a Year, launches Who was your first client? are people who will use you to this month. Ⅲ

EXECUTIVE MOVES Gene Liebel, 40, was president at Conner Strong Cos. partner. She was previously an associate. at the diversified insurance and financial promoted to chief Berdon: Fred Chilkowitz, 39, was The Mixx: William services firm. He was most recently strategy officer. He promoted to principal at the accounting Kapfer, 44, was named health promotion manager at Cigna. Continued from Page 25 continues as a firm. He was most recently a manager. vice president of Manatt Phelps & Phillips: Kinda Serafi, recently executive vice president and partner. Sean Kanousis, 36, was promoted to business development 36, joined the law firm as counsel. She chief operating officer. Shirley Au, 34, was principal. He was most recently a for the marketing and was previously director of policy at the Kaye Scholer: Daniel M. Boglioli, 35, was promoted to manager. brand development Children’s Defense Fund, New York. promoted to partner at the law firm. He managing partner. She Rachel Murphy Spice, 34, was promoted firm. He was Pryor Cashman: Alice B. Stock, 49, joined was previously counsel. was most recently to principal. She was most recently a previously a vice the firm as a partner and member of the Tatiana N. Alyonycheva, 50, was general manager. manager. president at David labor and employment and immigration promoted to counsel. She was previously Michal Pasternak, 31, was promoted to AXA Equitable Life Insurance Co.: John Morris International. law groups. She was formerly a partner an associate. partner, user experience. She was Carlson, 55, was named senior vice FOJP Service Corp.: Karen Robilotta, 52, at Lowenstein Sandler. Samuel Lonergan, 35, was promoted to previously vice president, user president, life distribution management. joined the nonprofit insurance and risk Dewey & LeBoeuf: Robert Chung, 35, was counsel. He was previously an associate. experience. He joined from MassMutual Financial management organization as vice promoted to partner at the law firm. He Patrick A. Michel, 40, was promoted to Traxi: Robert J. Iommazzo, 63, was named Group, where he was corporate vice president of human resources. She was was previously an associate. counsel. He was managing director at the financial president and national sales manager, most recently vice president of human Jacqueline Rose, 34, was promoted to previously an advisory and consulting firm. He had U.S. insurance group. resources at Pace University. partner. She was previously an associate. associate. been president of Scalamandre Silks Inc. Cleary Gottlieb Steen & Sapient Global Markets: Deborah Kevin Wallace, 36, was promoted to HUGE: Aaron Shapiro, Aon Risk Solutions: Michael D. Lezynski, Hamilton: Mark Leddy, Overdeput, 50, was named head of partner. He was previously an associate. 38, was promoted to 42, was named senior vice president of 63, was promoted to marketing at the financial and Hunter Roberts chief executive at the business development at the risk managing partner at the commodity markets company. She had Construction Group: interactive agency. He management and insurance brokerage law firm. He was been a marketing executive and David Guiteau, 36, continues as a partner. business. He was most recently vice previously a partner. principal at Maneuver Point. joined as chief FJC Security Services: Francis Cauffman: Merrie A. Sesskin, 57, financial officer. He Mark D. Coffino, 54, was appointed client relationship was a managing CORPORATE LADDER was promoted to director at the architecture firm. She had director at AIG executive vice president. He was been director of client development at Global Real Estate. previously senior vice president. Array HFS-Healthcare Architects. Cooper & Dunham: SANCHEZ TAPPED FOR AG’S OFFICE Quinn Emanuel: Ben Finestone, 35, was Integrity Consulting Group: Richard Jantz, Tonia A. Sayour, 32, was promoted to INCOMING STATE Attorney General Eric Schneiderman has promoted to partner at the business 40, was named managing partner at the partner at the intellectual property law named Karla G. Sanchez, 40, executive deputy attorney litigation firm. He was previously an real estate advisory and project firm. She was previously an associate. Ad.ly: general of economic justice. She will have direct associate. management firm. He was formerly a Dana Drazin, 34, joined the Alex Rudis, 32, was promoted to partner. director at VVA Inc. digital media celebrity micro- responsibility for five bureaus of the attorney general’s He was previously an associate. Michael d’Orlando, 42, was named endorsement platform company as office, including investor protection and consumer fraud. Manisha Sheth, 37, was promoted to managing partner. He was previously a director of sales for New York. She was Ms. Sanchez was most recently with Patterson Belknap partner. She was previously of counsel. vice president at Jones Lang LaSalle. most recently director of sales for New Webb & Tyler, where she was the first and only Hispanic Patterson Belknap Webb & Tyler: Nicolas Leslie Jantz, 33, was named a partner. York at SV Network. partner. Before joining Patterson Belknap, she served as law Commandeur, 34, was promoted to She was previously associate project —maggie wells clerk for Judge Deborah A. Batts of the District Court for partner at the law firm. He was manager at Jones Lang LaSalle. previously counsel. Arent Fox: Joseph Sarcinella, 48, was EXECUTIVE PROMOTIONS the Southern District of New York. Daniel C. Glazer, 37, was promoted to named a partner at the law firm. He had Ms. Sanchez was one of Crain’s 40 Under partner. He was most recently counsel. been a senior associate at Schulte Roth The fastest way to get an announcement into 40 honorees in 2006. Joshua A. Goldberg, 39, was promoted to & Zabel. Crain’s is to submit details online. Fill out the form —MAGGIE WELLS partner. He was most recently counsel. USI Inc.: Michael J. Miesch, 32, was at www.crainsnewyork.com/submit. The Irena Royzman, 40, was promoted to named health and productivity manager Executive Moves column is also available online.

26 | Crain’s New York Business | January 10, 2011 20110110-NEWS--0027-NAT-CCI-CN_-- 1/7/2011 12:30 PM Page 1 chemex / INSATIABLE CRITIC Gael Greene what he believes government should do flickr.com THE to revive the economy, and how Democrats can work with newly empowered Republicans in Washington. The event is sponsored by Delta and the WEEK Partnership for New York City and will be held at the Grand Hyatt, 109 E. 42nd St., from 8:30 a.m. to 10 a.m. Individual Getting hooked AHEAD tickets are $70 until Jan. 11 and $75 thereafter. Tables of 10 are $650 until Jan. 11 and $750 thereafter. For JAN. 17-23 more information, visit on Fish Tag www.crainsnewyork.com/events. newscom CONFERENCESUL AND URAL CCULTURALT EVENTS Upper West Sider SEMINARS MONDAY, JANUARY 17 WHAT HE’S THURSDAY , JANUARY 20 THE CHILDREN’S MUSEUM Pick serves good seafood; THE MANHATTAN CHAMBER OF COMMERCE OF MANHATTAN invites of the READING FOUNDATION and NYC BUSINESS families to “Raising week menu is hard to parse SOLUTIONS invite you to a free seminar Citizens,” a Martin Luther AL ROKER is quite a Renaissance on franchising your existing business. King Day festival.The festival man. When the most famous OR A TIME, it seemed to The event takes place from 8:30 a.m. to begins at 12 noon and lasts till 4 p.m. 10 a.m. at Metlife, 260 Madison Ave., Tickets cost $10 for children and adults meteorologist on TV isn’t me that chef Michael forecasting for the Today show or Psilakis had vaporized in 10th floor. For more information, call and $7 for seniors. Children under 12 (212) 391-9500 or months and members attend for free. the Weather Channel, he hosts a vainglorious cloud, e-mail [email protected]. The museum is located at the Tisch Food Network programs and disdaining local star- Building, 212 W. 83rd St. For more NETWORKING RECEPTIONS writes cookbooks and fiction. Mr.

dom, abandoning his dream at An- buck ennis F information, call (212) 721-1223 or visit Roker’s latest novel, The Midnight thos, leaving the feisty Mia Dona to NOTABLE COMBO: Mussels and lamb THURSDAY , JANUARY 20 www.cmom.org. his partner. Only his transplanted Join the Association for Corporate Show Murders, is a sequel to taverna, Kefi, was still thriving. Growth New York for its WINTER BASH THURSDAY , JANUARY 20 The Morning Show Murders. Both Well, now he’s back on the radar, FISH TAAG MONTE CARLO NIGHT.The event will be Take a preview walking tour of the books feature celebrity chef- with the wandering Ryan Skeen as 222 W. 79th St. held at the Mid-Town Executive Club, 40 AMERICAN ANTIQUES SHOW. The tour, led turned-amateur sleuth Billy his second, and a dizzyingly com- (212) 362-7470 W. 45th St., from 6 p.m. to 9 p.m., and by the American Folk Art Museum’s Blessing. www.fishtagrestaurant.com will include networking, casino gaming senior curator and benefiting the plex concept in the tiny space on The weatherman also finds and prizes.The fee is $75 for ACG New museum, will offer a preview of the time for leisure reading. Mr. Roker West 79th Street. It’s where his York members, $100 for members of show’s highlights. Tickets are $80 for Manhattan climb began with the other chapters, $125 for nonmembers, general admission and $65 for members, was recently in the midst of The beloved Onera. Where Kefi CUISINE Seafood and $150 for all at door. Register at students and seniors. Admission Reversal by Michael Connelly, in hatched, where the over-the-top www.acg.org/nyc. For information, call includes a light breakfast. The tour runs which longtime defense lawyer comfort food of Gus and Gabriel PRICE RANGE Entrées $19 to $26 (212) 489-8700 or e-mail [email protected]. from 9:30 a.m. to 10:45 a.m. at the Mickey Haller is reborn as a Metropolitan Pavillion, 125 W. 18th St. failed to amuse. He calls his new SERVING Dinner, seven days FORUMS prosecutor to retry a brutal child oeuvre Fish Tag, for the metal label To get more information or to reserve murder. “I always enjoy his stuff,” RESERVATIONS Yes TUESDAY , JANUARY 18 tickets, call (212) 265-1040 or visit that comes on shellfish deliveries. CRAIN’S BREAKFAST FORUM Mr. Roker said at a recent event NOISE LEVEL Civilized Attend , www.theamericanantiquesshow.org. After two visits, I’m excited to where Sen. Charles Schumer will discuss —maggie wells for NBC, referring to the author of say that most of the food is very I can’t wait to return. blockbuster legal thrillers. good,even wonderful,with a stacca- To view Crain’s classified events listings, go to www.crainsnewyork.com/events —VALERIE BLOCK to of flubs.I’m thinking I’ll add Fish I will definitely go back. Tag to my neighborhood hangouts I’ll let them simmer awhile. just for the unforgettable reverie of NO HATS Never again. lightly smoked potato and yogurt soup with bay scallops and trout roe floating below,and the best fried po- potato so crispy,crusty,crunchy,but- tatoes I’ve ever had. tery soft within. “They’re cooked But first,the initiation.The menu three times,” the chef confides. is not easily deciphered,arranged not Branzino stuffed with head- by category, but rather going from cheese? Offal? Yes.The chef sneaked lightest to heaviest, with suggested that in for his legion of innards fans. booze pairings alongside—yes, No wonder he and the pork-meister booze, not just red or white, spicy or Skeen get along so well. The dish is fruity, but tequila or rum. wildly overcooked. But my sword- On that first visit, I’m pleased to fish with Greek sausage on spicy finally figure out that starters are in bulgur salad is perfect, cooked faint- red,entrées in black,so we can final- ly pink, the way I like it. ly order. After a prelude of remark- Two nights later, I have time to able cheeses served with a cup of study the jottings in the margins of pickled vegetables and toasted olive the menu:I notice the house recom- oil-slicked country bread, I am mends an “explosive or bold white,” swooning over that yogurt nectar, “an earthy or funky red,” “sipping not quite hot enough in tempera- rums,” “a peaty Scotch” and “hoppy ture, alas, but marvelous even so, in or bitter ales” with the marvelous a tub big enough for three to share. bouchot mussels and spicy lamb. Slices of raw scallop,layered with The three-too-many-ingredi- pickled beet and bone marrow in an ents rule probably enhances the explosion of flavors, float like small chopped chicory, wild arugula and islands across a pedestaled cake bulgur salad toss—a luscious gath- stand streaked with pistachio and ering of Medjool dates, pomegran- almond stickum. And the outsize ates, green olives, breakfast radish, Jonah crab and eggplant bruschetta pistachios, peppers, grilled onions, in a furry wrap of grated Greek smoked almonds. Tremulous cheese is enough for each of us to salmon, on a nest of Greek “spoon” taste. Scary to look at, but delicious. salad, is framed by a white rectangle This is not the remarkably juicy of ironstone large enough to hold a lamb burger I fell in love with at An- suckling pig. thos. It’s drier and can’t be rare, of Brace yourself for pretension course, because it’s mixed with pork. here, pedestal platters an inch from The feta and spicy chili sauce doesn’t your chin and $20 glasses of Pinot help.But it almost doesn’t matter be- Grigio. cause I’m dumbstruck by the first bite of the fries.Only some demonic wiz- Copyright © 2011 by Gael Greene. ardry could produce these shards of Syndicated by www.insatiable-critic.com.

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