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Affordable Housing Business 20140818-NEWS--0001-NAT-CCI-CN_-- 8/15/2014 6:05 PM Page 1 DOGS GET THEIR DAY: Personal trainers, artisanal food, water therapy. Pet care hits highest level yet CRAIN’S® NEW YORK BUSINESS P. 29 VOL. XXX, NOS. 33, 34 WWW.CRAINSNEWYORK.COM DOUBLE ISSUE AUGUST 18-31, 2014 PRICE: $3.00 Grassroots Bloomberg Writ large Progressive Partnership ChirlaneJobs Rev. Al Sharpton Bratton Economy Queens Giuliani Game-changer Labor Poverty Brooklyn Pre-KDante Stop-and-frisk Equality Dinkins Bronx Affordable housing I’m going to start Staten Island Manhattan WORDS’ WORTH: A Crain’s review of Mayor Bill de Blasio’s public statements through June 30 shows he said “pre-K” 528 times, “business” 182 times, and catchphrases like “game- changer” or “transcendent” ChildrenTranscendent Koch about a dozen times each. Chiara Business Source: Mayoral transcripts Stats How’s Bill de Blasio shifting and the resources, rhetoric to push City agenda? It’s all in the data Steve Hindy on BY ANDREW HAWKINS zero traffic Bill de Blasio rode to the mayoralty in 2013 on a wave of deaths P. 9 promises: citywide prekindergarten, more help for the downtrodden, politer policing, fewer traffic deaths and Greg David on greater focus on the boroughs beyond Manhattan. His housing’s bad empathetic oratory has been a departure from the busi- nesslike pronouncements of his data-focused predeces- math P. 9 sor, Michael Bloomberg. But Mr. de Blasio’s efforts can PLUS: Charts! just as well be quantified—as can his rhetoric. Charts! To begin with, Mr. de Blasio has grown New York City’s government to execute his progressive agenda. Charts! His first budget totaled $75 billion—$5 billion more PAGES 10-21 See DE BLASIO on Page 25 ap images App for ‘sketchy’ nabes attacked as ‘fear sourcing’ ROUGH START: Founders The musician Questlove tweeted Duo faces perils of bringing concept to market before it’s vetted Daniel Herrington and Allison to his 3 million followers: “Will McGuire say SketchFactor is an instrument of good. @sketchbegone also deal w/5-0 That’s the lesson Manhattan- Factor was hoping to do good by al- brutality/school shootings? or just BY THORNTON MCENERY based SketchFactor confronted lowing users walking around cities undesirable skittle connoisseurs of when it launched its location-based to point out, in real time, potential the world.” When your business plan depends app on Aug.7.Like other tech start- dangers lurking around the corner. That tweet was one barb among on the wisdom of crowds, beware ups that have found lucre by mone- But its launch, first reported by many, but with its reference to the the angry mob. tizing the power of “we,” Sketch- Crain’s, provoked an immediate police and the snack found on furor with social-media shooting victim Trayvon Martin— 34 mavens and opinionistas in and coming just a day before an un- 5 the blogosphere accusing armed African-American near St. SketchFactor’s founders Louis was killed by cops—it encap- of creating a racial- sulated the kind of blowback that profiling app. Crowd- can trip up entrepreneurs with source? More like “fear social-minded businesses. sourcing,” critics said. See BACKLASH on Page 27 NEWSPAPER 71486 01068 0 20140818-NEWS--0002-NAT-CCI-CN_-- 8/15/2014 5:25 PM Page 1 ASSISTANT M.E.’S NOTE Train of thought FYICRAINSNEWYORK.COM A decade ago, a friend visiting from Minnesota was taking the ’16 Dem convention could subway with me from Manhattan to my lifelong neighborhood of generate windfall for city Park Slope. She’s an urban planner, hether or not a Brooklyn interested in how cities function, so convention helps Democrats I alerted her to a phenomenon I keep the White House, it would had observed since childhood, W Erik Engquist likely be a net gain for the city’s economy. ¶ even though I was a bit Brooklyn’s Barclays Center holds 18,103 embarrassed by it. “Watch this,” I people. If Mayor Bill de Blasio is successful said as we pulled into Grand Army Plaza, the stop at in wooing the Democratic National the end of my daily commute. “Every white person Convention to Kings County in 2016, the in this car is about to get off.” She looked around: event could attract twice that number. ¶ In 2012, the DNC in Charlotte, N.C., drew 35,000 There were dozens of white people in the car, and Dems for three days and spurred $163.6 million in spending, according to a study sponsored about as many people of color. She later told me that by Charlotte-based business groups. A Brooklyn convention should top that. ¶ Democrats say she assumed I was exaggerating. But darned if every it would generate at least the $250 million in economic activity of the 2004 Republican National last white person didn’t exit. She was stunned. And Convention at Madison Square Garden—minus the police overtime and legal costs associated she didn’t even know that the next stop, Eastern with that year’s protesters. (A different study by Suffolk University placed that figure at $163 Parkway, was just a few blocks away (albeit in a million, similar to the Charlotte DNC and nearly 40% less than the $260 million quoted by different neighborhood, Prospect Heights). But not the Bloomberg administration.) ¶ Although the city would spend less on security, logistics long after that, I began noticing that every so often, would take a toll: The de Blasio administration said it would dedicate traffic lanes to shuttle some white straphangers would continue past Park attendees who don’t find hotel space near Barclays. ¶ Deep-blue New York is up against Slope.Then it became common.Today it is swing-state cities Philadelphia, Cleveland and Columbus, Ohio, as well as solid-red Phoenix inevitable. In fact, my subway line remains diverse— and Birmingham, Ala. A final decision will be made after the midterm elections in dare I say integrated—beyond Prospect Heights into November. —andrew j. hawkins Crown Heights (I know from friends who live there, and also from occasionally sleeping past my stop). MOVE OVER, MANHATTAN. San Fran- derfunding, neglect and mismanage- cisco may soon surpass Manhattan as ment have led to an $18 billion repair HOORAY! Similar change has been happening across the city having the country’s most expensive bill for the New York City Housing MORE since crime rates plunged and housing costs surged. commercial real estate.Office rents in Authority and a $77 million budget WHALES the City by the Bay are expected to deficit. … FEEL THE BUZZ. A $50 mil- are seen in Indeed, it seems to be accelerating: A graphic on New York Page 16 in our annual Stats and the City section climb to $69.71 a square foot by the lion investment valued viral news site Harbor, end of next year, up almost 18% from BuzzFeed at $850 million, making it thanks to shows median home values went up about 30% over the second quarter. Manhattan rents more valuable in theory than old-line cleaner waters. 12 months in formerly homogeneous Bushwick, are likely to rise 6.5%, to $69.68. … print pubs The Washington Post and Washington Heights, Borough Park, Bed-Stuy and RECORD SETTLEMENT. Bank of Amer- the Los Angeles Times combined. … QUIRKY EYES HOME-APPLIANCE RIVAL. Hamilton Heights. Some people lament it, calling it ica and the U.S. Justice Department reached a tentative $16 billion settle- The Manhattan consumer-electron- raslich-gotham whale artie gentrification. Which it is. Yet I hope my friend ment over the bank’s alleged sale of ics startup, partnering with private- from Minnesota returns for another subway ride, so I faulty mortgage securities. The deal equity giants including Blackstone OY VEY! can show her the progress we’ve made. I’m certain includes a $9 billion cash penalty and Group,is putting in a bid to buy a ma- BEDBUGS were spotted on a 7 train, the would represent the jority stake in Gener- third line to be infested with the vermin. she will be stunned once again. largest sum the DOJ ‘And you al Electric’s home- has ever extracted appliance business. It from a single compa- know what is vying with Stock- THIS WEEK IN CRAIN’S ny. … GAME holm-based Elec- CHANGER. Tennis you learn if trolux AB for the GE IN THE BOROUGHS-------------------------- 3 fans will be closer to you’re a New unit, which could the U.S. Open action fetch at least $2 bil- IN THE MARKETS----------------------------------4 at Arthur Ashe Sta- Yorker? The lion. … HALF-PRICE THE INSIDER ----------------------------------------------- 6 dium, thanks to a world doesn’t HARLEM. The 2013 konefal by wally illustration photo $550 million, multi- median sales price for BUSINESS PEOPLE ---------------------------7 year renovation that owe you a a condo in central advertise the financing of a show to OPINION-------------------------------------------------------------8 has moved 1,000 Harlem, $600,000, accredited investors.The Kagans’ On damn thing’ SOME- STEVE HINDY-----------------------------------------------9 seats to the lower lev- was about half that in the Town opens Oct. 16. … el and will eventually —Lauren Bacall, who died Manhattan below BODY BEAT THE WIZ. Marvin Jemal, GREG DAVID ------------------------------------------------9 include a retractable Aug. 12, as quoted by 96th Street. That’s who co-founded defunct appliance roof. … OH-NO-PHILE. The New York Times in one reason Harlem store Nobody Beats the Wiz, plead- STATS AND THE CITY ------------------10 her obituary Rudy Kurniawan was home sales rose 57% ed guilty Aug.7 to charges that he de- CLASSIFIEDS -----------------------------------------22 sentenced to 10 years in prison and in the second quarter.
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