TOP STORIES “[Diners] are State takes aim at much more critical expensive hospital detox units than they’ve PAGE 2 ever been.” –Douglas Griebel, president ® Rosa Mexicano restaurant Citi shares are a Page 48 buy despite woes; is breakup likely? IN THE MARKETS, PAGE 4 VOL. XXIII, NO. 5 WWW.NEWYORKBUSINESS.COM JANUARY 29-FEBRUARY 4, 2007 PRICE: $3.00 2008 paradox: NY donors are THE WAR IN NEW YORK courted, but voters will be ignored ALAIR TOWNSEND, P. 11 Business Pfizer plant may Nowhere to turn become site for struggles affordable housing Lacking cohesive PAGE 46 support system, vets to fulfill Picky restaurant fall through cracks; patrons give city steps up efforts its duty owners heartburn BY SAMANTHA MARSHALL BUSINESS LIVES, PAGE 47 Called-up workers’ when he left the military in Au- salary and benefits gust 2005,John DeVito was hoping at issue for firms for a better life. It hasn’t turned out that way. The former Army tank driver, BY TOM FREDRICKSON who saw six months of combat in Iraq as a member of the invading for the past five years, hun- Pages F1-F28 forces, was injured at a roadside dreds of New York companies have Profiles, facts check outside Baghdad. The bar- experienced first-hand the impact and tidbits rel-chested 23-year-old now needs of the wars in Iraq and a cane to get around. He can’t find Afghanistan. On the Web now a job and believes that his disabili- The 19-person financial ac- Archive of ty, combined with his limited work counting division at New York Life former winners experience, has hurt his prospects. had to function without a key man- On the Web Feb. 1 Mr. DeVito is getting by on ager when Andrew Amenn enlist- Video interviews, about $450 a month in military dis- ed in the Army shortly after Sept. photos, profiles ability payments and staying with 11.He served two tours in Iraq,suf- www.newyorkbusiness-risingstars.com his mother on Staten Island while fered a bullet wound to his leg and he studies computer science. returned to work last October. “To go back to living under Hotlights Inc.,a Manhattan firm Mommy’s roof is never a great feel- that rents lights for film and photo ing after being independent,” says shoots, saw two of its five staffers go AT DEADLINE LIFE INTERRUPTED: Mr. DeVito, who last year was di- Former Army tank to Iraq in 2004. The men, both re- BANKS IN NEW YORK CITY, ONE agnosed with post-traumatic stress driver John DeVito servists, had a combined 35 years’ OF THE NATION’S most disorder last year by a doctor with hasn’t found work experience. One has returned to competitive markets for the Department of Veterans Af- since returning from work; one is taking a hiatus. deposits, are quietly cutting the fairs.“A lot of stuff gets compound- Baghdad in 2005. “It was like survival,” says Hot- interest rates they offer See NOWHERE on Page 8 buck ennis See BUSINESS on Page 8 depositors. Last week, the average one-year CD rate fell to 3.16% compared with a peak of 3.38% in September, according to new data from Bankrate.com.The average six-month rate fell to 3.06% New investors flocking to Broadway from a high of 3.22% in late August. Money market rates dropped to 0.6% from 0.64% Record box office, packed venues attract in mid-September. Banks have backers by dozens; too much money? been hit hard by a flat yield curve, which describes the plays Dr. Warner on Law & Order condition in which long-term BY MIRIAM KREININ SOUCCAR SVU,graduated to a producer of the interest rates are no higher upcoming Broadway run of Radio than short-term rates. last fall, a friend asked Tamara Golf, the last known work by Au- Tunie to invest thousands of dollars gust Wilson. She’s having no trou- FASHION INDUSTRY INSIDERS in the Broadway musicals Spring ble finding backers. EXPECT First Lady Laura Awakening and Legally Blonde.She “As soon as I mention what I’m See AT DEADLINE on Page 2 whipped out her checkbook. doing, there’s immediate excite- Now Ms. Tunie, an actress who ment and interest,” Ms.Tunie says. “There’s something glamorous and exciting about Broadway.” She is one of a new breed of in- vestors and producers enticed by the Great White Way. As Broad- ELECTRONIC EDITION way breaks box-office records,new- buck ennis comers are jumping in with hopes BUSINESS SIDE: Recognizable actress Tamara Tunie, who has appeared in Broadway NEWSPAPER See NEW INVESTORS on Page 9 productions, is thrilled to be an investor in the upcoming Radio Golf by August Wilson. AT DEADLINE Continued from Page 1 VERIZON WIRELESS IS SET TO State wants overhaul Bush to attend the Fashion UNVEIL A MAJOR INITIATIVE to Week runway show “The Heart recruit Hispanic employers Truth” on Friday. She is the and vendors in the New York national spokeswoman for the City area. Verizon Wireless National Heart Lung and Blood projects that it will hire 400 of failing detox units Institute, which produces the employees this year—half of event to raise awareness of heart them bilingual. Verizon also disease in women.The show, wants to enter into 100 now in its fifth year, features red additional exclusive vendor Eyes lower cost, more successful treatment options dresses created by top designers, relationships with small including Diane von business owners, including BY GALE SCOTT Furstenberg and Carmen Marc many Hispanics. Valvo. Mrs. Bush last attended the event in 2005. PUBLICATIONS THAT TARGET in the parlance of drug WEALTHY READERS have been treatment,Terri Hunter was a THE DECISION BY LAWRENCE one of the fastest-growing print frequent flier. A heroin user MANDELL, chief executive of the categories in the past 10 years, for three decades, Ms. Hunter, United Way of New York City, according to the 2007 edition to retire in June will open up of the Standard Periodical 48, was hospitalized for what recruiters say is one of the Directory by Oxbridge detoxification 15 times in 20 most important jobs in the city’s Communications.The number years. nonprofit sector.The position, of affluent-oriented which pays close to $400,000 a publications more than Each time, doctors got her year, is considered as prestigious quadrupled to 456 between sober and saved her life. as the top spots at Lincoln 1997 and last year. Other hot Medicaid picked up the bill, Center and the Red Cross. Mr. categories tracked by the usually around $5,000 for a Mandell’s retirement follows an directory include puzzle internal investigation into the publications, which nearly four- to five-day stay. But organization’s finances, tripled to 143; advertising without follow-up counseling according to reports published shopping guides, which more and monitoring, she soon SUCCESS STORY: last week. United Way declined than doubled to 667; and ethnic relapsed. Outpatient care provided to comment on the titles, which grew by almost by Dr. Jeffrey Selzer’s staff investigation. 90%, to 1,696. Among those on While hospitals and helped Terri Hunter the wane: publications focusing doctors legally and ethically escape the detox cycle. SMITH & WOLLENSKY’S BOARD on internal communications, must keep such patients until neff david OF DIRECTORS has hired business management and financial advisory firm TM political science and politics. they are medically stable, no one is required to provide care that actually helps control Capital to help it evaluate a addiction. In part, that’s because the current system financially benefits hospitals, for which hostile takeover bid from MANHATTAN-BASED GLOBAL detox admissions are money-makers. Landry’s Restaurants Inc. Two TRADE & TECHNOLOGY CENTER But Gov. Eliot Spitzer has vowed to overhaul New York’s costly health care system. weeks ago, the Houston-based leased 50,000 square feet in an company offered to purchase 800,000-square-foot Changing how addicts are treated could drastically cut reimbursements to hospitals. New Smith & Wollensky for international trade center in policies could also eliminate some of the state’s 1,069 hospital detox beds, 735 of which are in $64.5 million or $7.50 a share KunShan, China, just outside of See STATE TARGETS on Page 9 in cash, a 50% premium. Shanghai. GTTC will sublease Smith & Wollensky’s shares space in the Luichi Kunshan traded at about $7 last week; Trade Center to U.S. the stock had been trading at government agencies and about $5 a share before the American businesses looking to move by Landry’s. do business in China. ■ NYC developers resist the Say eco-structures but many people THIS WEEK IN CRAIN’S say the rules are are prohibitively too hazy. NEW YORK, NEW YORK----------6 Two of the expensive to build; city’s new proj- ALAIR TOWNSEND -------------------11 ects—the Hearst rules aren’t clear Tower in midtown THE INSIDER------------------------------------12 and 7 World Trade BY JULIE SATOW Center down- 40 UNDER 40 ------------------------------F1 town—are huge, REAL ESTATE DEALS--------------41 rex hakimian has seen all the me- but they represent dia attention lavished on the latest only a small frac- WEEK IN REVIEW -----------------------42 crop of green buildings sprouting in tion of the total the city. He’s aware of all the awards number of square 49 CLASSIFIEDS ---------------------------------- 44 that those buildings have won for feet added in re- buck ennis NEIGHBORHOOD their developers. But he is still not OUTSTANDING EXCEPTIONS: 7 World Trade Center (left) and the cent years. Last 51 sold.