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Crain's New York Business CRAIN’S® NEW YORK BUSINESS VOL. XXIX, NOS. 25, 26 WWW.CRAINSNEWYORK.COM SPECIAL ISSUE JUNE 24-JULY 7, 2013 PRICE: $3.00 She runs a $105 billion business. And Corporate she’s our No.1. She helped crooks, P. 13 give Brooklyn beware: its cool. P. 21 She’ll put you in jail. P. 16 Meet the Could this chic nerd woman be the behind If straphangers next president nerdy chic. of the United P. 17 say something, chances are States? P. 16 she’ll hear it. P. 20 ALSO INSIDE: Loehmann’s aims upscale P. 3 Pro-biz PAC endorses City Council candidates P. 6 ELECTRONIC EDITION MakerBot engineers a merger P. 27 NEWSPAPER It’s a nice day for a green wedding P. 29 EDITOR’S NOTE Femmetastic FYICRAINSNEWYORK.COM My brother and I have five sisters. They are smart and strong, and some days can be as sweet as soda Cuomo rolls a 7 on casinos, pop, as long as you don’t pose a but referendum looms threat to their loved ones. Would I Andrew Cuomo ever attempt to rank the Coleman ov. ’s bet on full-scale casino sisters in any kind of importance gambling in New York has cleared a key beyond their birth order? Only if I hurdle. After finally striking a hard-fought Glenn Coleman G deal with Albany legislators over where to site four wanted our next family gathering newscom Mr. Cuomo will to turn into an especially bloody new “destination” gaming resorts, now face longer odds: approval from a majority of statewide voters in a November referendum. episode of Game of Thrones. So that’s my personal back story as we present on Page 13 our latest list of Mr. Cuomo’s legislation would place the four initial casinos upstate, with two in the resort- the 50 Most Powerful Women in New York, ranked filled Catskills, one in the Albany area and one in the Southern Tier along the Pennsylvania Nos. 1 through 50, in order of their commercial and border. After seven years, up to three more casinos could be built, including in New York City. civic clout in New York’s business community. At the same time, Mr. Cuomo is hustling to neutralize opposition to the plan. He finally got the Genting Resorts World Subjective? Of course. Yet our power-women sign-off of deep-pocketed Malaysian casino giant —which operates the rankings are also based on reasonably objective racino in Queens—after making a last-minute threat to allow rival facilities to open in the outer measures like revenue and operating budgets, job boroughs. religious groups intend to oppose the referendum titles and chains of command, employee counts in However, , and out-of-state gambling New York and beyond, and board work for charitable behemoths fearing competition could spend heavily to spike it. Adding further intrigue: The bulk of voters determining the fate of Mr. Cuomo’s plan to revitalize the upstate economy will be and civic causes. Plus the occasional je ne sais quoi. LISTEN to a discussion at New York City residents voting in the mayor’s race. Polling Lucky for me I had another sisterhood of smart, CrainsNewYork.com/podcasts strong women in my life to help determine who shows legalization to be a toss-up. —chris bragg stayed, who left, who joined and who ranked where STOCKS TUMBLE. Stocks plunged is long enough to get it done. The on the list: Publisher Jill Kaplan, Deputy Managing Thursday after the Federal Reserve mayoral hopeful rejected the Garden’s HOORAY! Editor Valerie Block, Senior Reporter Theresa said it would pull back its stimulus plea to remain at West 33rd Street and STEEP efforts.The Dow Jones industrial av- Seventh Avenue in perpetuity. She MIDLEASE Agovino, Deputy Art Director Carolyn McClain, rent hikes for Senior News Producer Elisabeth Butler Cordova erage recorded its biggest one-day instead called for a commission to some Stuy Town point drop since Nov. 9, 2011, shed- help the arena find a new home to residents were and Assistant Data Editor Emily Laermer. I can’t tell ding 353.87 points. Losses on make way for the renovation of Penn canceled, thanks to a deal you how much fun some of our meetings were—the Wednesday and Thursday also Station. … NSA SAYS SPYING between owner debates, the laughs. No, really, I can’t tell you. Some marked the first back-to-back de- THWARTS ATTACKS. The U.S. govern- CW Capital and clines of 200 points or more since ment reported that about 50 terrorist the state things just stay in the family. Nov. 1, 2011. Worries about China’s plots—including one against the attorney general. economy and finances also rattled New York Stock Exchange—were THIS WEEK IN CRAIN’S the markets. … LAWSKY BRINGS THE foiled by its recently unveiled, sweep- buck ennis BANKING PAIN. The New York state ing surveillance programs. Mean- OY VEY! Department of Financial Services’ while,Google petitioned a court to al- IN THE BOROUGHS-------------------------- SOME 14 3 chief regulator, Benjamin Lawsky, low it to tell the public about the 7-Eleven franchises were IN THE MARKETS----------------------------------4 said he wouldn’t put up with bank records the government has secretly shenanigans, and last week he made demanded from it.… FANCY GRUB AT raided, and 40 THE INSIDER -----------------------------------------------6 more, including good on his word. UNION SQUARE. After some in NYC, are His office first fined years of legal wran- being investigated SMALL BUSINESS ------------------------------7 ‘Mr. Schron’s Deloitte Financial gling, an appellate for criminal OPINION --------------------------------------------------------10 employment of Advisory Services offer is real court approved an immigrants. ALAIR TOWNSEND -------------------------11 $10 million and upscale eatery for barred it for a year and is backed Union Square Park. GREG DAVID-------------------------------------------- 11 from advising New by $50 million’ Critics had argued REAL ESTATE DEALS-------------------12 York-chartered —Jason Meister, who that a pricey restau- program. Several mayoral candidates REPORT: 50 MOST banks,citing miscon- orchestrated a $2 billion rant is not appropri- say they back mandatory composting, duct and violations of offer to buy the Empire ate use for public park as envisioned by Mayor Michael POWERFUL WOMEN---------------13 law during its work State Building for Rubin space. The ruling Bloomberg (see poll, Page 10). … with Standard Char- Schron, owner of the scored a win for the NEW LOCAL BREWSKI. Brooklyn CLASSIFIEDS -----------------------------------------24 GOTHAM GIGS tered on money- Woolworth Building city and the area’s Brewery unveiled a new homegrown DIGITAL NY ------------------------------------------------- Kenneth Kudulis and his 27 laundering matters. business improve- brew called Greenmarket Wheat. Then Bank of Tokyo Mitsubishi- ment district,the Union Square Part- Made in partnership with nonprofit wife, Jenifer, have created a NEW YORK, NEW YORK ---------- 29 RECYCLING FOOD WASTE. monster business selling their UFJ agreed to pay the state $250 mil- nership. … GrowNYC, the beer is made prima- SOURCE LUNCH-------------------------------- googly-eyed Kudu-lah 30 lion to settle claims it transferred bil- New Yorkers may soon be required to rily from products grown within 200 lions for countries subject to U.S. separate food scraps from garbage. miles of the city.Greenmarket Wheat Critters. P. 8 OUT AND ABOUT-------------------------------31 sanctions.… QUINN PUTS GARDEN ON The city announced plans to retain a will be sold at the Union Square CORRECTIONS NOTICE. City Council Speaker Chris- composting plant to handle 100,000 Greenmarket and at Whole Foods for Jared Kushner is CEO of the family’s real estate company. Thrive Capital was one of the tine Quinn wants Madison Square tons of scraps each year and recently $10 to $12 per 750 ml bottle. lead investors in a $50 million financing round for Instagram. This information was Garden moved and thinks a decade rolled out a voluntary composting —amanda fung misstated in the June 17 “The insiders.” In addition, Thrive was an investor in the Spotify music site. The story misstated at which stage Thrive invested in that company. GMI Ratings is a corporate governance research firm. That fact was misstated in the June 17 “Les gets more.” STORIES TO WATCH THIS WEEK vol. xxix, nos. 25, 26, june 24-july 7, 2013—Crain’s New York Business (issn 8756-789x) is pub- lished weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at June 25: Barnes & June 25: 32BJ June 28: Outdoor July 1: New York New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s Noble Inc. reports SEIU is expected to public pools open. City’s fiscal 2014 New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777.$3.00 a copy, $99.95 one fiscal-year 2013 make its mayoral begins. year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved. earnings. endorsement. 2 | Crain’s New York Business | June 24, 2013 IN THE BOROUGHS Loehmann’s defies the odds BROOKLYN Despite going bust Bay Ridge NO DUMMY: CEO Steven twice, discount Newman is giving clothier avoids fate Loehmann’s stores a driven $12 million makeover. of Filene’s, Daffy’s to dissent BY ADRIANNE PASQUARELLI Filene’s Basement was the first to Locals spar over fall.The off-price retailer became an early victim of the Great Recession. city’s plan to make Next came Syms Corp., which bit Fourth Avenue safer off more than it could chew when it tried to revive Filene’s.Last year saw the demise of Daffy’s, a family-run BY ADRIANNE PASQUARELLI chain that just couldn’t cut it against new competitors, including digital The heavily trafficked four-lane discounters.
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