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TOP STORIES REPORT BusinessWeek SMALL redesigns; can the BUSINESS move stem the ad Alternative lenders page slide? shine in credit crunch PAGE 2 ® PAGE 21 MasterCard growth under threat even as shares VOL. XXIII, NO. 41 WWW.NEWYORKBUSINESS.COM OCTOBER 8-14, 2007 PRICE: $3.00 rocket upward PAGE 3 WHAT’S CLICKING Issues loom Chef Michael Psilakis to expand Kefi on the UWS as rail yard NEW YORK, NEW YORK, P. 6 Health insurers bids readied SAKS.COM featured best AMERICANAPPAREL.NET SEPHORA.COM edits its offer plan to cut sellers Ugg boots and Tory has unisex T-shirts in its hot list to show a filtered Burch shoes last week. best-seller section version of its sales report. rates by 20% Housing, credit crisis large number of affordable resi- THE INSIDER, PAGE 14 dential units that will be required? affect pricing as Related LP and The Durst Or- Carolyn Reidy will ganization, which is working with Latest retail fashion: 5 developers ponder Vornado Realty Trust, confirmed write the rules as grand W.Side scheme that they’ll make bids. Tishman new CEO of Speyer, Brookfield Properties online best-seller lists Corp. and Extell Development Simon & Schuster BY THERESA AGOVINO Co. are also expected to put in of- CORPORATE LADDER, P. 37 fers but won’t comment. New Web feature Tory Burch ballet flats and other $501 million. Hudson Rail Yards is Manhat- items that make the list. She re- About the only certainty as de- tan’s last major development site. BUSINESS LIVES tells customers what cently gave them access to the list velopers put the finishing touches The 26-acre tract on the far West WEDDING TRENDS by installing a “Best Sellers”feature on bids for the Hudson Rail Yards Side presents an opportunity to others are buying on Saks.com. is that the offer will top the transform an ugly industri- “We heard over and over again $500 million that the city al plot into an extension of BY ELISABETH BUTLER CORDOVA that the customer wants to know was willing to pay when it $1B midtown, with office tow- what people are buying,” she says. wanted to put a football ESTIMATED ers, residential buildings, a after years in fashion, a retail Now shoppers can scan the site’s stadium there. COST to cultural center and park construct a executive might grow tired of look- most popular items by category. Many questions have platform over space. ing at new trends. Not Denise In- For the last few weeks, Tory yet to be answered. How the rail tracks “It can be another Rock- More and more brides candela. When she scans the Burch’s trendy shoes have been much will a developer be efeller Center,” says Stan- are choosing the fall- week’s list of the best-selling styles, selling like mad, and Juicy Cou- willing to pay the Metropolitan ton Eckstut, the architect who de- foliage month for their she still wants to buy them. ture’s jewelry charms are flying off Transportation Authority for the veloped the master plan for Battery nuptials PAGE 35 Over the summer, Ms. Incan- the shelves, according to the site. rights to the area? Can any devel- Park City. dela, president of direct sales at Saks updates its list every Monday oper find an anchor tenant that will Grand visions are expensive to Saks Fifth Avenue, realized that to show the previous week’s most give it an edge over its rivals? And execute, however. All the develop- her customers might also covet the See BEST-SELLER on Page 8how will a developer finance the See RAIL YARD on Page 8 AT DEADLINE

THE PROPORTION OF SUBPRIME LOANS ISSUED in the New CULTURE BATTLES York area increased sharply in 2006, according to newly released federal banking data.The proportion of conventional mortgages priced Textbook lesson more than 3 percentage points above 20-year Treasury bonds increased to 21.6% of total in gentrification loans in 2006 from 18.6% in 2005. Banks issued a total of 19,854 such mortgages in with whites and minorities, rich 2006. Banks also issued 14,513 Brooklyn housing and poor living together.A prover- subprime home-equity loans boom causes clash bial melting pot. in 2006 to help buyers make But in local public schools, it is down payments. Such as new arrivals fanning a cauldron. Incoming par- “piggyback” loans increased reject city schools ents—largely white and well-edu- 27% for the year. cated—are rejecting neighbor- hood public schools en masse. LAGUARDIA COMMUNITY BY ERIK ENGQUIST Parents seeking progressive re- COLLEGE RECEIVED a $250,000 forms are meeting fierce resistance federal grant Friday for its the city’s ballyhooed rezoning from an entrenched school bu- recently launched veterans of Williamsburg and Greenpoint reaucracy. Classrooms are empty- See AT DEADLINE on Page 2 in Brooklyn is supposed to create a ing out as newcomers decline to fill vibrant, integrated community the seats vacated by minorities priced out of the area. “When parents come in and say 41

5 a school’s not good enough for their children, it’s a very sensitive issue,”says Kate Yourke,an activist ELECTRONIC EDITION parent who moved to Williams-

burg from the Upper West Side in buck ennis 1985. “Parents were quite naive COMMON CAUSE: NEWSPAPER Kate Yourke, with Coral (in arms) and Olive, says the Education Department See BROOKLYN on Page 10 has no plan for updating schools to meet demand for broader curricula and parental involvement. 71486 01068 0 CNYB 10-08-07 A 2 10/5/2007 7:39 PM Page 1

AT DEADLINE Continued from Page 1 round of investment, which BusinessWeek gets program—one of the most included previous investor significant examples of outside Ascend Venture Group.The financial help for soldiers six-year-old company provides returning from Iraq and businesses with an on-demand Afghanistan and enrolling in emergency alert and response bold new look the City University of New system through devices York’s system (Crain’s, March including landlines, cell phones 19). LaGuardia’s program helps and BlackBerries. veterans who enlisted without Redesign aims for global high school diplomas complete THE GALLEON GROUP SIGNED AN the core subjects they need for a EIGHT-YEAR LEASE for the entire postsecondary education. 24th floor—almost 9,000 square appeal, but can it end CUNY expects a significant feet—of 575 Madison Ave., percentage of the 10,000 New between East 56th and East ad page slide? York area veterans to return 57th streets, according to the from Iraq and Afghanistan over company’s broker, Dirk BY MATTHEW FLAMM the next 18 months to enroll in Hrobsky of CB Richard Ellis the city college system. Inc.The hedge fund’s rent will businessweek is no longer red, average $70 a square foot. It also CREDIT-RATING AGENCIES occupies 25,000 square feet at white and blue. DOWNGRADED the outlook of 590 Madison Ave., between Four years after its last Merrill Lynch & Co. after the East 56th and East 57th streets. redesign, the McGraw-Hill nation’s top brokerage firm flagship publication has dropped warned that it would post its THE WHITNEY MUSEUM OF first unprofitable quarter since AMERICAN ART is launching a the signature blue stripe across 2001. Moody’s, Standard & new patrons group that offers its cover and gone for a global Poor’s and Fitch all lowered the members the chance to meet the look to make it as at home in a firm’s outlook to “negative” from artists at museum shows and European café as it is in a “stable” on Friday after Merrill visit their studios. Memberships said it would write down the in the Artists Council will cost Midwestern office park. value of $4.5 billion in subprime $5,000 a year. Inside the covers, a streamlined mortgage and other structured arrangement takes into account finance holdings. While BETTER HOMES AND GARDENS, virtually all investment banks WHICH HAS ALREADY licensed its the increasing demands on readers’ have recorded big writedowns in name to products ranging from time and the fact that news is light of the credit crisis, home decor to computer available around the clock.The radically Moody’s said Merrill’s software, is extending its brand revamped title hits newsstands Oct. 12. announcement was substantially to real estate agents. Under a worse than it had expected. long-term contract with BusinessWeek joins a host of troubled Realogy Corp., a residential magazines in the quest to revive reader MANHATTAN-BASED TECH FIRM real-estate franchise system interest and keep even more ad dollars SEND WORD NOW is expected to called Better Homes and from fleeing to the Web. announce on Tuesday that it has Gardens Real Estate will arrive raised $8.5 million in financing. on the scene next July, As a charter member of two pressured Southpaw Asset Management Advertising Age reports in this categories—business magazines and in Greenwich, Conn., led the week’s edition. I newsweeklies—78-year-old BusinessWeek has been hit particularly hard. Ad pages david neff david CORRECTION have fallen 17% this year, according to Media Royal Bank of Scotland’s U.S. pretax profits are more than $4 billion. The figure was misstated in the Oct. 1 section on 100 Influential Women. Industry Newsletter. But if it hopes a redesign can reverse the slide, it need only look at fellow struggler, STEPHEN ADLER (left) and Keith Fox say the redesign THIS WEEK IN CRAIN’S Time, which introduced its own radical will appeal to readers and See BW’S NEW LOOK on Page 8 advertisers alike. GREG DAVID ------13

THE INSIDER------14 NEIGHBORHOOD JOURNAL------15 Dolan confronts NHL brass

WEEK IN REVIEW ------16 fers control of the site.The team has to make more money by operating THE WEEKS AHEAD ------17 Team owner suing already racked up more than half a the site independently. million dollars in potential penalties. Mr. Dolan contacted other team REAL ESTATE DEALS------league over control 37 18 The NHL has directed all of its owners last month to try and rally REPORT: of online marketing; teams to transfer control of their them to fight the NHL.But no oth- alone in fight sites so it can build a standardized er hockey club has joined his cause. SMALL BUSINESS------21 Web presence,with all teams sharing Most teams ceded control of in the revenues from advertising, their Web sites to the league’s mod- CLASSIFIEDS ------30 BY HILARY POTKEWITZ promotions and product sales gener- el in the spring and summer. BUSINESS LIVES------35 ated online.Millions of dollars are at “I can’t picture an awful lot of two sexual harassment cases stake, especially as these sites grow. support for this from other teams,” LIVING LARGE------36 against Madison Square Garden But the Rangers have no intention of says Arthur Griffiths, former owner CORPORATE LADDER------37 have dominated New York City’s handing over nyrangers.com to the of the Vancouver Canucks and now tabloids for the past few weeks, but league and are accusing the NHL of an executive at sports marketing EXECUTIVE MOVES------38 39 Garden boss Jim Dolan has another trying to “unlawfully seize control” firm Octagon. BOB LAPE ------39 legal battle on his hands: He’s suing of its business. That the Rangers are the last the National Hockey League. holdout comes as no surprise to vol. xxiii, no. 41, october 8, 2007—Crain’s New York Business (issn 8756-789x) is published More invested in web site weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals The Rangers, which are owned hockey insiders.Mr.Dolan has been postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address by MSG,are suing the league to keep that may be because the Rangers at odds with the NHL before. Last changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a control of the team’s Web site and have more invested in their six-year- year, the team posted special playoff copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents marketing promotions, while the old site than the other teams. They ticket offers and launched its own copyright 2007 by Crain Communications Inc. All rights reserved. NHL has slapped the Garden with a also play in the richest media market online store on its site. The NHL $100,000-per-day fine until it trans- in the country and have the potential forced the team to shut down the

2 | Crain’s New York Business | October 8, 2007 CNYB 10-08-07 A 3 10/5/2007 7:45 PM Page 1 Losing its charge? NY eyes equates to better than 25% of the disaster Clout-wielding more than $5 trillion in worldwide HEADY GROWTH MasterCard faces credit and debit-card spending. MasterCard shares trade at a multiple of That market share pays hand- 27 times projected 2008 earnings. spending slowdown, somely. In the first half of the year, reserve MasterCard posted $467 million of legal challenges net income,or $3.42 a share,on rev- enue of $1.9 billion,a vast improve- BY AARON ELSTEIN ment over last year, when results fund were bogged down by initial public mastercard inc.’s performance offering costs and the company since it went public last year has posted a $184 million loss on $1.6 Proposed rule would been—to put it mildly—priceless. billion of revenue. Analysts sur- In just 16 months, shares of the veyed by Reuters Fundamentals ex- make insurers create credit card giant have more than pect earnings to grow by a stellar 20-year reserves quadrupled in value. 20% next year.

In recent weeks,however,cracks “MasterCard occupies one of lindström bekka have begun to appear in the compa- the sweetest spots in banking BY KIRA BINDRIM ny’s rosy profit forecasts, and bears imaginable,” says Red Gillen, an soon as this fall the European settlements from such actions have begun betting that Master- analyst at research firm Celent.“So Union will probably order the com- “could absorb much or even all of new york state property insurers Card shares could be on the verge of long as people spend more, it will pany to substantially reduce the the company’s excess cash.” As of may be required to create hurricane a sharp decline. benefit.” commissions it charges merchants midyear, MasterCard had $1.5 bil- and disaster reserve funds under a “The company faces a lot of dif- The problem is that earlier as- on cross-border transactions, typi- lion in cash and equivalents on its regulation proposed by Insurance ficulties that are being ignored right sumptions of continued heady cally 1.5% of the purchase price. books. Superintendent Eric Dinallo. now,” says Zachary Scheidt, a port- gains in consumer spending—and Such a cut, MasterCard warns, “Most people probably think folio manager at Piedmont Invest- could “significantly impact” its Ignoring the threats that the extra money they pay on ment Advisory in Atlanta,who sold business in a market that grew by the real danger for MasterCard their homeowners insurance for MasterCard shares short earlier MasterCard is 25% in the first half of 2007—twice shareholders is that they hold a hurricane protection goes into a this year and is looking to do so the pace of the U.S market. stock that is priced as if all these ‘very rainy day fund’ to pay claims again. stealing market “By far the biggest risk Master- threats did not exist and as if the when hurricanes hit,” Mr. Dinallo Card faces is from regulation, par- company’s lofty earnings growth said in a statement. Scrutiny over rates share from that ticularly in Europe,” says Craig will continue ad infinitum. The “In fact,because of current insur- looming largest on the horizon Maurer, an analyst at Calyon Secu- shares trade at a hefty multiple of 27 ance accounting and tax rules, if are worries that the meltdown in has-been, cash rities. times projected 2008 earnings, there is no hurricane,the extra mon- the housing market will depress Legal challenges at home are miles ahead of American Express’ ey goes to insurance company prof- consumer spending and, more also mounting. U.S. merchants, multiple of 15 and Discover’s 12. its.That leaves the company with no specifically, charge-card use. perhaps taking a cue from overseas As if all that weren’t enough, reserves to pay huge claims from big The Purchase, N.Y.-based card regulators, have sued MasterCard MasterCard will soon lose its lofty hurricanes and network faces growing scrutiny and Visa over the rates they charge. status as the world’s largest pub- consumers angry from regulators over the rates it in MasterCard’s revenues—are This summer, the Justice Depart- licly traded charge-card company. $70B over ballooning charges merchants. MasterCard looking increasingly outdated. ment began looking into the mat- Visa,jealously eyeing its rival’s suc- TO $80 profits and rising BILLION could also faces legal challenges from ri- With big retailers like Target and ter. MasterCard, which declined to cess, is preparing to go public early be added to premiums,”he said. vals including American Express, Lowe’s issuing profit warnings in be interviewed for this article, has next year. Visa is not only larger, the tax bill for Under the pro- which accuse it and Visa of monop- recent weeks and consumer-confi- said that it is not a focus of the but also more profitable, sporting insurance firms posed regulation, olizing the market. dence readings slipping, fears are probe. Next September, however, operating margins of 35% com- insurers would be Those problems are cropping up mounting of a broad economic MasterCard will very much be in pared with MasterCard’s 30%. required to set aside a portion of the at a time when MasterCard is clear- slowdown. the spotlight when a suit brought by That could well persuade in- premium dollars they now collect ly at the top of its game. It contin- Meanwhile, the company is also American Express, charging Mas- vestors looking to dabble in the for catastrophe protection. ues to steal market share from that encountering stiffer headwinds terCard, Visa and several big banks booming card business to put their The money, except for taxes and old has-been, cash, with its massive overseas, where it generates half of with anticompetitive practices, will chips down on MasterCard’s more reinsurance, would be untouchable network, which processes more its revenues and the bulk of its come to trial. productive rival. for 20 years, except in the case of a than 30,000 transactions every growth. In a recent regulatory fil- A Bear Stearns analyst recently major catastrophe, including hurri- minute of every day. That volume ing, MasterCard warned that as reckoned that that judgments or COMMENTS? [email protected] canes, wind, hail, earthquake or winter storms. Insurers likely to object THE RANGERS posted insurers themselves may object ticket offers and to the proposal. over Rangers site launched an online store Money placed in such a reserve on their site last year. would not be considered an expense of the respective year and could sub- features after two days and pay a presence with common templates sequently be subject to federal and $200,000 fine to the league. for teams, managed by the central state taxes. “It doesn’t surprise me that the league office. Now it’s the NHL’s The added outlay could run be- Rangers are balking, given the way turn. Once completed, the league tween $70 million and $80 million a management has done decision- can promise sponsorship opportu- year, according to Robert Hartwig, making in the past,” says Mr. Grif- nities across 30 sites, instead of do- president of the Insurance Informa- fiths.“But I’m sure cooler heads will ing it piecemeal. tion Institute. prevail.” A working draft of the proposal, Some say it’s a case of rich teams League’s to blame, says Dolan being circulated to the insurance in- not wanting to help poor teams,but “i don’t think the suit will be suc- dustry and consumers, could be- the Rangers see it in more philo- cessful,” says Matthew Pace, chair- come a regulation after a 45-day sophical terms. In the lawsuit, they man of the sports business practice public comment period.

charge the NHL with violating an- at law firm Duval & Stachenfeld. getty images The Insurance Department be- titrust laws and accuse the league of “Those practices have proven them- came interested in the issue last being an illegal cartel. selves not to hurt competition.” signed to increase competitiveness ness,” he wrote. year, when insurers, reacting to pre- Some sports lawyers don’t be- But a team like the Rangers, the of the entire association,he explains. The Rangers may be profitable, dictions that coastal areas of New lieve the suit has merit.They see In- second-wealthiest hockey team af- NHL and MSG executives de- but when it comes to the survival of York were overdue for a damaging ternet rights as an extension of na- ter the Toronto Maple Leafs, can clined to comment while the case is professional hockey,individual suc- hurricane,began raising rates.They tional television rights, which were probably make more money by pending. But in court papers, Mr. cess is not enough, Mr. Griffiths also canceled many policies, espe- sorted out years ago. controlling its own site. Dolan blames NHL management says. Even the Rangers need teams cially in shore communities on The National Baseball League “I get it;they have a big payroll and for the weaker teams’ problems. to play against. Long Island. and the National Football League they want to maximize revenues,” “The league continues to squander have already streamlined their Web says Mr. Pace. But the rules are de- opportunities to improve our busi- COMMENTS? [email protected] COMMENTS? [email protected]

October 8, 2007 | Crain’s New York Business | 3 CNYB 10-08-07 A 4 10/5/2007 7:47 PM Page 1

IN THE MARKETS HIGHLIGHTS REEL Verizon’s big bet on fiber +3.6% finally yields dividends The Bloomberg/ Crain’s New package TV with high-speed Internet giant in which Britain’s Vodafone owns a York Index $20 million project and phone service has also helped the 45% stake. With 60 million subscribers, rose 3.6% to draws new customers; company win customers back from cable the unit is the No. 2 wireless carrier in the end the providers. country and is still week at 395. cell phones still tops “We believe the growing. The S&P ➡ company’s shift in fo- “Wireless is a key 500 Index cus to use video as a driver for Verizon’s rose 2.0%, BY AMANDA FUNG lead-in product is be- business,” says Peter closing at ing met with success,” Rhamey, telecom eq- 1558. or years, Verizon Commu- Michael Rollins, an uity analyst at BMO nications Inc.’s $20 billion ef- equity analyst at Citi- Capital Markets, who fort to build a fiber-optic net- group Global Mar- also notes Verizon work that will let it bring kets, wrote in a recent Wireless’ whopping television and high-speed In- research note.He rates 40%-plus profit mar- RISERS Fternet into millions of homes has Verizon stock a “buy.” gin. 5-DAY 1-MONTH 3-MONTH CLOSING weighed heavily on the company’s share Verizon is forecast The unit posted % CHANGE % CHANGE % CHANGE PRICE price. to post per-share earn- revenues of $38 bil- Martha Stewart +18.7% +14.1% -17.1% $13.83 Those days appear to be over. Mount- ings of $2.69 in 2008, lion last year, up ing evidence that all that bread on the wa- up 14% from this year, 17.8% from 2005, and Lazard +13.7% +23.6% +5.5% $48.22 ter is about to reap rewards is making Ver- on a 4% gain in rev- had a 15% increase New York & Co. +13.1% +8.3% -37.6% $6.90 izon perform like a growth stock. Its enues,to $97.4 billion. in subscribers. Mr. Market cap $131.8 billion Aéropostale +12.8% +12.4% -24.0% $21.50 shares have risen steeply this year, hitting Those gains would Rollins projects that Hertz +10.0% +13.6% -6.1% $25.00 a 52-week high of $45.64 last week, up come on the heels of Projected 2008 P/E 16.9 its revenues will rise 22% since Jan. 1. two years of profits de- Total debt $32.5 billion 16% this year, to $44 With the payoff from Verizon’s mas- pressed by the outlays billion. SINKERS sive commitment only just beginning,in- for the fiber-optic net- Verizon Wireless 5-DAY 1-MONTH 3-MONTH CLOSING vestors still have plenty of time to dial into work. Verizon’s 2006 added 1.6 million sub- % CHANGE % CHANGE % CHANGE PRICE this emerging telecom success story. earnings dropped 20% from 2005, to scribers during the second quarter of this Bunge -4.8% +10.7% +20.5% $102.33 Since launching its TV service in a $2.54 a share, on revenues of $88 billion. year alone. Despite AT&T Wireless’ in- Maidenform -3.5% -8.5% -26.6% $15.33 handful of markets in late 2005, Verizon The slide is seen slowing this year; profits troduction of the wildly popular Apple has signed up more than half a million are forecast to drop just 7% from 2006, to iPhone in June, analysts say Verizon Weight Watchers-3.4% +7.1% +8.9% $55.62 subscribers nationwide. As it has entered $2.36 a share, on revenues of $93 billion. should pick up market share—mostly CBS -3.3% -1.1% -10.8% $30.48 more markets, Verizon has signed up an Though television may be a future from troubled Sprint Nextel Corp. Cablevision -2.0% +1.3% -9.2% $34.25 average of about 2,600 customers every growth engine, the biggest money-maker business day for FiOS TV.The ability to now is Verizon Wireless, the cell phone COMMENTS? [email protected]

STOCKS TO WATCH by Erik Ipsen In Marvelous week for laggards, investors bid up shares of ’07 dogs What do Martha Stewart, Marvel Entertainment and the Blackstone Group have in common? All were among a group of downtrodden local stocks that rallied sharply last week as investors bet on a change in the economic wind. In a performance worthy of Spider-Man, Marvel’s listless shares leaped 14% on no news. Things could be different next year as the company starts to produce movies in-house. Wall Street argued for years that nothing would do more to puff up the shares of cigarette maker, Altria, than getting rid of its dull-as-mac-and-cheese Kraft Foods division. Oops, turns out that Altria shares have gone nowhere since the long-awaited parting in March. Not even plans to spin off its faster-growing international arm and shift production overseas have helped. The stock is still sucking wind as investors fret over never-ending litigation threats. Late this month, Arrow is expected to announce an 11% rise in third-quarter earnings, continuing an eight-quarter string of gains for the electronics and software distributor. That kind of performance, plus acquisitions, including that of a Scandinavian distributor last month, have helped send Arrow shares rocketing 39% this year and to a 52-week high last week. Even now, though, they trade at only 13 times next year’s forecast earnings. charts: lindström bekka

4 | Crain’s New York Business | October 8, 2007 Project4 3/1/07 5:54 PM Page 1

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GREY WORLDWIDE CNYB 10-08-07 A 6 10/5/2007 6:18 PM Page 1

NEW YORK,NEW YORK edited by Valerie Block

Greek eatery grows on UWS oodie partners Donatella Arpaia and Michael Psilakis are teaming up on another restaurant project—transforming Fchef Psilakis’ Upper West Side Greek eatery, Kefi, into a more spacious spot. The co-owners of critically acclaimed Anthos are hunting for real estate in the neighborhood, looking at locations that will give them enough room for about 250 seats or quadruple the current count. “Kefi is doing three turns a night,” says Mr. Psilakis, who opened the restaurant earlier this year at 222 W. 79th St. after

closing three-year-old Onera at the same location. “Kefi’s buck ennis success has outgrown its space.” Devotees of the popular place won’t have to suffer long waits DONATELLA to score a table or scrounge for cash next spring, as the larger ARPAIA (right) and incarnation will accept plastic and take reservations. MICHAEL PSILAKIS will The new Kefi will still be affordable, says Mr. Psilakis.“The prices expand Kefi. won’t change,” he insists.“That’s part of why we’ve been so successful.”

watch created by superstar “fairies” showed Clapton book, CD: product designer Marc Newson. drinkers how to power duo Adam Lindemann, a major ingest the once- contemporary art collector in banned liquor favored by Pablo it’s a match made in old media Manhattan, bought the rights to Picasso and Ernest Hemingway. heaven: Clapton:The Autobiog- Ikepod two years Served since the spring at raphy and a companion CD, ago and just trendy bars like Employees Only, Complete Clapton, will land in relaunched the Lucid is now going mainstream. stores Oct. 9 on the heels of a brand. “It’s the new fun and mysterious marketing blitz that proved two When the first thing to hit New York,” says Frank hard-pressed industries are better prototypes were Alessio, executive director at together.The book and two-disc offered to selected Hawaiian Tropic Zone, which has career retrospective from Eric Clapton art dealers and been selling the hard-edged liquor (below) are even packaged alike. collectors late last for two weeks. “We serve it The marriage makes for more year, boldfaced traditionally, poured over a sugar marketing power. names like Larry cube and perforated spoon into a “We would not have done TV Gagosian, Jeanne Greenberg Rohatyn rocks glass filled with ice.” Kobe Long established [on our own]; we would not have and Aby Rosen snatched them up. Club is another recent convert. done radio,” Now, the watches, which run from Publishers, too, are betting on commitment says Meghan $10,000 to $40,000, are available the drink’s popularity. Next Walker, the at SoHo design store Moss. month, Speck Press releases Weiser LLP Doubleday With only 300 of the Absinthe: Sip of Seduction, a Certified Public Accountants Broadway timepieces made each year, the Contemporary Guide. marketing signed and numbered watches are For those looking to stock the director who already attracting a waiting list. home bar, a bottle of Lucid goes partnered with Mr. Newson, the only designer for $59.99 at retail.

getty images Warner Bros. whose furniture has sold for more to the Records on the project. “Working than $1 million at auction, will Contributors: Lisa Fickenscher, Matthew New York City New York together allowed us to quadruple create a new watch design every Flamm, Miriam Kreinin Souccar, 135 West 50th Street New York, NY 10020 business community the bang for our buck.” 18 months. Alix Strauss Tel 212.812.7000 The book’s first chapter will be “This is very different from the Fax 212.375.6888 For nearly a century,Weiser has provided available on iTunes as part of the traditional luxury watch,” says Long Island accounting, tax, and consulting services, such digital booklet that will come with Mr. Lindemann, a wristwatch DATES WITH 3000 Marcus Avenue as state and local tax planning, internal audit the album. Marketing fanatic since his teens. “Marc DESTINY Lake Success, NY 11042 outsourcing, and business restructuring, collaborations in addition to TV Newson is the most coveted living Tel 516.488.1200 to private clients and business enterprises, and radio include a video, a full- designer in the world.” GREAT DATE NOW, with offices Fax 516.488.1238 including closely-held and emerging entities, page ad that recently ran in surrounding the city, just opened Westchester in a variety of industries including: Rolling Stone and another this a Manhattan branch in the Lin- 660 White Plains Road week in The New York Times. Absinthe coln Building in midtown. The Suite 430 • Real estate “It’s a new world,” Ms. Walker Tarrytown, NY 10591 unleashed company, which says it’s the • Manufacturing and distribution says. “You have to look for every Tel 914.333.0555 largest personal dating service in • Auto dealerships way you can to market a book and last wednesday, hundreds of Fax 914.333.0556 • Media and communication the area, plans to go public and not just throw an ad in the Times adventurous tipplers celebrated has earmarked $500,000 for a New Jersey • Banking and call it a day.” the national launch of Lucid, the 399 Thornall Street • Food and dairy local ad campaign. It’s now inter- Edison, NJ 08837 first so-called genuine absinthe to viewing agencies. Future plans • Health care be legally available in the United Tel 732.549.2800 • Financial services include national and European Fax 732.549.2898 A matter States in 95 years.The Back • Professional services rollouts. President Gary Ferone Room—with its speakeasy feel www.weiserLLP.com • Not-for-Profit of timing says Great Date offers “a high- and purposely hard-to-find class boutique service, catering newly minted hedge fund location on the Lower East For more information, contact Douglas Phillips at 212.375.6701. millionaires can finally buy the Side—played host for the to a special strata of society.” latest status symbol: an Ikepod occasion. Green body-painted

6 | Crain’s New York Business | October 8, 2007 CNYB 10-08-07 A 7 10/5/2007 7:49 PM Page 1

Consumer loan crisis could swamp Citi

housing values is no longer there,” Fallout from high says Dick Bove, an analyst with exposure to housing Punk Ziegel & Co. While investors bid up Citi’s may not end with 3Q shares last week, believing that the bank was taking its medicine all at BY TOM FREDRICKSON once,that view is too optimistic.Citi will likely have to set aside more re- when citigroup inc. warned in- serves as consumer lending weakens. vestors last week that earnings for Citi built up its reserves largely the third quarter would be down because of growing problems with 60% from the year-earlier period, it its home equity portfolio, according pointed to the usual suspects: losses to Diane Merdian, an analyst with from mortgage-backed securities Keefe Bruyette & Woods. and loans tied to corporate buyouts. Citi’s home equity loss rates near- But it also warned of problems in ly quadrupled from the fourth quar- consumer lending.Citi expects cred- ter of 2005 to the second quarter of IS MONEY it costs in its global consumer unit to 2007. The problem: The bank has rise $2.6 billion in the third quarter. been increasingly targeting over- About a fourth of the increase is leveraged borrowers, who have little Everyone who runs a business knows that time is a precious commodity. driven by loan charge-offs; the re- incentive to stick around now that Business Banking from HSBC has solutions to help you make the most of mainder represents money set aside falling home prices are wiping out for possible future charge-offs. the equity they have in their homes. your time and money. Those funds may not be enough. More troubling for Citi is its >Visit your local branch Citi will be hit hard by the looming large number of risky loans with rel- consumer slowdown.More than any atively high interest rates—includ- >1-866-427-2103 other major bank, analysts say, Citi ing subprime debt and home equity >us.hsbc.com/business will sink or swim along with con- loans—which contribute amply to sumers, who are pressured by the profits in boom times but can be a fast-sinking housing market. drag when the market turns. “I think the consumer has peaked, Products in the United States offered by HSBC Bank USA, N.A. or HSBC National Bank USA. Both banks are Member FDIC. in the sense that the increase in COMMENTS? [email protected] ©2007 HSBC Bank USA, N.A. London Stansted. Nonstop every day.

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October 8, 2007 | Crain’s New York Business | 7 CNYB 10-08-07 A 8 10/5/2007 7:52 PM Page 1

ago, but they’ve been high up on Studios. Saks.com’s shoe list for weeks. For those best-seller lists that Best-seller lists are latest fashion To avoid those cringe-inducing resonate with customers,the feature moments,some retailers adjust their will probably play a key role in driv- Continued from Page 1 “The big surprise is that everybody frustrating than helpful for our best-seller lists to show off selected ing online sales for the all-impor- popular online purchases. doesn’t use it.” customers to try to find a promoted merchandise rather than the actual tant fourth quarter, which starts in The upscale chain became the Even smaller outfits think it best-seller that is probably close top-selling items. November. first department store to offer a could be a useful Web tool. Trendy to being sold out over a few days Ms. Incandela plans to track the best-seller list. American Apparel boutique chain Scoop NYC plans to or hours,” says Eileen Shulock, Finessing the data hits generated by the list on recently launched a similar feature add the feature to its online store in e-commerce creative director of beauty retailer Sephora says it Saks.com during the holidays. The on its Web site. Industry observers the next six months. Intermixonline.com. “Our cus- edits its list to reflect a filtered ver- feature is part of the chain’s aggres- expect the lists to help drive online “People always ask our sales asso- tomer has her own strong sense of sion of the actual sales report. “To sive online push. apparel shopping during the holi- ciates, ‘What’s the next big thing?” personal style, so while she might the extent possible,we try to include With an average transaction val- days because customers can use the says Remy Rosenbaum, director of happen to like a best-selling item, products from a wide range of the ue of more than $400, the site is ex- feature to pick out trendy gifts for Scoop e-commerce. “A best-seller that is not driving her purchasing brands that we carry,” says Allison pected to become the second-largest their spouses, children and friends. list will show them.” Scoop’s list will decision.” Slater, vice president of retail mar- store by sales in the chain by year’s Amazon.com helped pioneer the include the most popular products Even retailers that use the lists keting at Sephora USA. end. concept,and many more retailers are in a range of categories, such as raise some concerns.While they can But if retailers tamper too “Anything that provides some expected to follow its lead soon. In a jeans, tops and even flip-flops. help create and strengthen current much—by, say, slipping a few slow outside validation goes a long way,” recent survey,54% of e-retailers said trends, they can squelch those bub- movers onto the list to give them a says Scott Silverman, executive di- they’ll put more focus on the best- Opting out bling under. boost—they risk losing credibility rector of Shop.org, the online re- seller feature in the next year, ac- some retailers are resisting the And some of the best-sellers with customers. search arm of the National Retail cording to Forrester Research. herd mentality. Intermix, one of the don’t paint the fashion-forward The lists “could be the best sell- Federation. “Customers trust each “There’s so much available on a city’s hottest fashion chains, is opt- marketing picture that retailers ers of last week, or whatever the re- other more than they trust the re- Web site, and this helps narrow it ing out of the list frenzy. want to project. For example, Ugg tailer wants to push,” says Eric tailer.” down,” says Sucharita Mulpuru, a “Our inventory sells out so boots, once a must-have item for Stranburg, a project manager at re- senior retail analyst at Forrester. quickly that we feel it might be more trendsetters, fell out of fashion years tail Web design firm FireThread COMMENTS? [email protected]

Add to that the area’s poor access will have to evaluate is whether to to public transportation. There are keep the High Line, the defunct el- Rail yard bids due plans to extend the No. 7 train line evated-rail viaduct that runs along a to West 34th Street and 11th Av- portion of the site.The Durst Orga- Continued from Page 1 commissioned last year by the MTA enue, but there was only one bidder nization, which once groused that ers are believed to have been in talks valued the yards at $2.74 billion.The for the construction project, and a simply retaining the High Line with large companies that would agency plans another appraisal to ac- contract hasn’t been signed. would cost $117 million, now pro- move their headquarters to the site. count for current market conditions, Furthermore, the credit crunch poses using at least part of it for Having a key tenant locked in would but hasn’t scheduled it yet. could make financing the deal more transport. help a developer secure financing, As developers prepare their bids, expensive, and the project’s afford- The site’s affordable-housing WEST SIDE BASICS and would provide a steady stream they know that their buildings can able-housing component means it component is already stirring up The 26-acre site is located between of rent as other parts are built. total 12 million square feet. The will be less profitable for developers. controversy. Community Board 4 West 30th and West 33rd streets, Tishman is rumored to have a MTA set broad guidelines about how wants 27% or 28% of the homes on from 10th to 11th avenues. Bidding on only one part deal with Lehman Brothers, al- to allocate the space for commercial, the site to be affordable, not just the EXPECTED BIDDERS though the bank declines to com- residential and community uses. “the deal starts to look a little 20% required by the MTA propos- ment. A source says Durst has a Using that general outline, Bob thin,” says Mr. Von Ancken. “The al. The board is concerned that the G Brookfield Properties commitment from a publishing Von Ancken, executive managing overall construction costs are so MTA will look at bids without con- G The Durst Organization/ firm, but the developer won’t com- director of Grubb & Ellis Consult- overreaching and it is going to take sidering that some may be lower be- Vornado Realty Trust ment. Bear Stearns says it rebuffed ing Services Co., estimates that the so many years [to build], you will cause they include a larger afford- G overtures from a developer, but parcel is worth as much as $3.4 bil- need a low purchase price.” able-housing component. Extell Development won’t say which one. lion. He doubts that anyone would Developers don’t have to buy the “All the MTA wants is top dol- G Related “A major tenant is a way of win- pay that much because of the ex- site,however.Under the MTA’s pro- lar,” says Anna Levin, chair of the G Tishman Speyer ning. It lends the project feasibility.I pense, complications and risks of posal, it can be leased. And since the board’s Clinton/Hell’s Kitchen ap images think it is critical,” says Mr. Eckstut. developing the land. site comprises two separate 12-acre Land Use Committee. But even with an anchor tenant in For starters, the developer must spaces, developers can choose to bid Even one developer worries that An MTA spokesman says the place, divining an appropriate bid is build a platform over the rail tracks on only one, limiting their financial the MTA won’t fully appreciate that charges of greed are unfair. a challenge, because it’s not clear in order to construct on the site.The exposure. its bid will be affected by the costs of what the land is worth. An appraisal price tag is estimated at $1 billion. Another choice that developers building affordable housing. COMMENTS? [email protected]

Week say it has suffered record loss- BW’s new look OFF A CLIFF es this year. BusinessWeek’s ad pages and ad revenues have fallen drastically since 2000. Positive reaction Continued from Page 2 not region.A Personal Business sec- Ad pages % change1 Ad revenue % change1 mcgraw-hill does not break out reinvention in January but has yet to tion, formerly Personal Finance, ex- 2000 6,006 n/a $573 million n/a numbers for the magazine. A Busi- stem its ad page decline. tends into space that used to go to nessWeek spokeswoman declined to BusinessWeek says its remake is Executive Life, which got the ax. 2003 3,035 -49% $337 million -41% comment on possible losses. She aimed at readers, not advertisers. BusinessWeek is better off leaving 2006 2,748 -9% $310 million -1% says the publication is putting mon- “This is [the result of ] a reader- lifestyle topics to other magazines, First-half ’072 1,097 -13% $132 million -8% ey into BusinessWeek.com,and “we focused look at how the reader’s Mr. Adler says. expect that investment to pay off.” n/a-Not applicable. 1-Compared with previous period shown. 2-Compared with first-half 2006. world is changing,” says Stephen Source: Publishers Information Bureau The site’s ad revenues grew 32% in Adler, the former Wall Street Journal Readers returning the first half, she says. deputy managing editor who be- the changes may be aimed at Mr. Fox sees signs of a rebound came editor in chief of BusinessWeek readers, but the publisher argues circulation was down 1%,to 913,000 is it can’t change its name,” says Jim in tech and B-to-B, the magazine’s two and a half years ago, succeeding that advertisers will also be pleased. copies. The magazine guarantees Berrien, president and publisher of biggest ad sectors. He says that the longtime editor Stephen Shepard. “An engaged reader makes for advertisers a rate base of 900,000. Forbes Magazine Group. Forbes prototype of the redesign received “The effort is to serve that read- good business,” says Keith Fox, Media buyers, with some excep- comes out twice a month. “overwhelmingly positive reaction” er in a more contemporary way— president of BusinessWeek. “That tions, seem to like the title’s new Under Mr. Adler, BusinessWeek from a broad group of advertisers. understanding how busy they are, creates buzz in the community.” look. But they also say that a re- has put a lot of focus on the Web site. Mr. Adler makes the case that a how global their business is, how Readership numbers have been design can do only so much to keep But it faces a challenge there as well. weekly offers an advantage—if the their information consumption has recovering, Mr. Fox says, and he ex- advertisers from the Web. Ranked No.13 in the business-news title has kept up with how its read- changed,” Mr. Adler adds. pects that to continue with the re- “[The magazine is] in for an up- category, BusinessWeek.com had ers get information. The retooled title opens with a design.The most recent Mediamark hill battle,” says George Janson, di- 2.8 million unique visitors in Au- “People operate in the context of news summary that compiles staff Research Inc. study, this spring, rector of print at Mediaedge:cia. gust, according to Nielsen//Net- a workweek,” he says. “They read items along with those from a wide showed BusinessWeek with 4.8 mil- Others argue that, no matter Ratings. [BusinessWeek] on the weekend and range of publications, both in print lion readers, its second-highest in a how they package information, Rivals Forbes.com had 9.1 mil- use it as a bridge between the weeks. and online. decade. weeklies provide news that readers lion unique visitors in the month,and That makes our frequency very An extended news section com- Newsstand sales jumped 25% in have already gotten from newspa- CNNMoney.com—home of For- powerful.” bines international and domestic the first half of this year, the Audit pers, cable television and the Web. tune and Money—had 8.1 million. stories, now organized by impact, Bureau of Circulations says. Total “The real issue for BusinessWeek Even worse, insiders at Business- COMMENTS? [email protected]

8 | Crain’s New York Business | October 8, 2007 CNYB 10-08-07 A 9 10/4/2007 7:49 PM Page 1

Commerce buyer to expand lending SAVE

commercial banking capability, and TD plans to increase far higher financial flexibility,” says investment services, TD Banknorth Chief Executive Bharat Masrani.He vowed to main- commercial business tain Commerce’s customer-friendly hours and Sunday service. The BY TOM FREDRICKSON name and staff will also be kept. “I think we will be able to retain officials of TD Bank Financial many if not all of our key employees, Group say that when the $8.5 bil- because people realize our business- lion purchase of Commerce Ban- es are very complementary,” says corp is closed, they will increase in- Greg Braca, Commerce’s New York vestment management, commercial market president. “This merger is lending and capital markets capabil- not about cost-cutting—it’s about ity in New York. growth.” TD, Canada’s No. 3 bank, has Analysts say the deal could pres- 460 U.S. branches—mostly in New ent an opportunity for competitors. England but as far south as Philadel- Because Commerce already has a Now you can deposit checks from your business and see them in your account phia—through its TD Banknorth large presence in New York, TD in as little as 24 hours. Remote Deposit Capture¹ is just one of the many solutions subsidiary. Only three of those may slow expansion, giving rivals a from HSBC that can save you time and help your business thrive. branches are in Manhattan, however. chance to gain share. Commerce, based in Cherry And smaller institutions, such as >Visit your local branch Hill, N.J., expanded into Manhat- the nimble Signature Bank, may be >1-866-427-2103 tan in 2001 and now has 61 branch- more successful at luring commer- >us.hsbc.com/business es in the city. Local core deposits cial bankers, for whom banks have were $7.2 billion in the second quar- been competing strenuously. ter, up 29% year-over-year. But its “Bankers might choose to go to lending business has lagged. smaller firms instead,” said Gary ¹For all checks correctly scanned using Remote Deposit Capture scanner and transmitted to HSBC by 8:00 pm Eastern Time, “I am tremendously excited that Townsend, a banking analyst at customer will receive same-day ledger credit of funds. All checks scanned after 8:00 pm will post the following business day. we are unleashing this growth en- Friedman Billings Ramsey & Co. The Bank’s policy is to make funds from customers’ deposits quickly available to the customer according to a schedule which is based on where the check is drawn. Certain fees and charges may apply. For details, please contact an HSBC business gine with new products and a bigger representative at 877-HSBC-BIZ option 3. Products in the United States offered by HSBC Bank USA, N.A. or HSBC National Bank USA. Both balance sheet, greater capital and COMMENTS? [email protected] banks are Member FDIC. ©2007 HSBC Bank USA, N.A.

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October 8, 2007 | Crain’s New York Business | 9 CNYB 10-08-07 A 10 10/5/2007 2:43 PM Page 1

INTRODUCING THE NEW B’klyn culture clash Continued from Page 1 about the implications.” SCHOOL DISTRICT 14 The May 2005 rezoning of northern Brooklyn by the Bloom- INCLUDES Williamsburg, berg administration and the City Greenpoint, and part of Bedford- Council has triggered a boom of lux- Stuyvesant ury apartment projects. In the next ENROLLMENT, OCTOBER 2006 few years,tens of thousands of afflu- 19,652 ent residents will plunk themselves down in what has long been a poor, TWO-YEAR CHANGE IN K-5 heavily ethnic area. ENROLLMENT -12% The schoolyard fights of the last ETHNIC BREAKDOWN two years point to uglier times ahead HISPANIC 62% for the administration’s most ambi- tious experiment with accelerated BLACK 25% gentrification. WHITE 9% Consider what happened to ASIAN/OTHER 4% Brooke Parker, who led an effort to increase arts education at P.S. 84 in STUDENTS WITH LIMITED Williamsburg. “I was running for ENGLISH PROFICIENCY 15% the school leadership team,and I got Sources: NYC and NYS departments of education heckled by faculty at a meeting,” she says.“The faculty was trying to push out parents they didn’t want.” dreds of luxury units in Williams- It worked:Ms.Parker and the oth- burg.“I don’t have an answer for you. ers pulled their kids from the school. There’s talk of a charter school, a Antares is pleased to announce the signing of a 60,654 It’s a common scenario in Dis- new magnet school or maybe even a trict 14, where many schools feature new private school.It would be great square foot lease. 70 percent of the building is now pre-leased. tightly controlled classrooms in if that occurs.” which test preparation,handwriting drills and homework are empha- No new schools, says city For leasing information: sized. Some schools have no recess, with so many vacant desks, the 203.653.6045 • www.100westputnam.com and children are rarely allowed to Department of Education says it 100 West Putnam, Greenwich, CT 06830 speak to each other, even at lunch. won’t build new schools. Instead, Students might have just one gym District 14 Superintendent James Owned and managed by Antares Investment Partners. class a week but spend two hours a Quail says he will try to accommo- day on penmanship.Exams begin in date parents who seek “more oppor- kindergarten. tunities for children to think and de- The rigid approach, which pro- velop their own learning styles in duces admirable test scores in some classrooms, and more opportunities District 14 schools,is typical of con- for parents to engage.” servative, immigrant-dominated But the department has given communities. principals great autonomy, and “From when you drop your chil- many resist change. dren off to when you pick them up, “[Former Deputy Chancellor] they’re not allowed to have fun,”says Carmen Farina said that all you one white mother who expects to need is 10 families to move in and transfer her child to a private ele- help turn a school around,” says mentary school next year. Pamela Wheaton, the director of With few exceptions, the neigh- InsideSchools.org,which gives Dis- borhood’s new arrivals are sending trict 14 schools mixed reviews. “But their kids anywhere but their zoned if you have a principal who’s diamet- schools. Many use false addresses to rically opposed. …” enroll them in schools in lower Some parents are plotting to start Manhattan.Others opt for a charter self-contained boutique schools school in Fort Greene, Brooklyn, or within existing district buildings. private or magnet schools as far as an Ms. Yourke, whose 7-year-old son hour away. As a result, enrollment attends public school in East fell 12% over two years in the dis- Williamsburg, opposes that move. trict’s 20 elementary schools; 13 She is leading a small group of par- were left at less than 80% of capaci- ents who are trying to move District ty and seven at less than 60%. The 14 out of the 1950s.They aired their five conventional middle schools are grievances at a powwow in June, but now just 56% full on average. little has happened since. “Our last chance to integrate Developers are worried these communities is by raising our the problem is not lost on the de- children together, and I don’t think velopers marketing new apartments the Department of Education has a to white professionals from Man- mind-set or a plan for how that can hattan who demand schools with happen,” Ms. Yourke says. “They parental involvement, field trips, have been completely negligent in hands-on projects and the like. dealing with this.” “We have thought about it,” says Ron Moelis, who is building hun- COMMENTS? [email protected] NO HELP FOR THE GIFTED PROGRAMS FOR THE GIFTED, used by many districts to attract middle-class parents, don’t exist in District 14. Officials tried to launch a program last year, but they promoted it poorly and located it at P.S. 297—a 99% black and Latino school in an area so dangerous that students are forbidden from using the playground. Only three students accepted spots in the gifted program, so it was canceled.

10 | Crain’s New York Business | October 8, 2007 CNYB 10-08-07 A 11 10/4/2007 7:56 PM Page 1

Food employees threaten strike AND LET THE

cafeteria workers are not members Cafeteria, dining of the union to ask Aramark to pro- room workers seek vide better benefits. Local 100 is the bargaining unit new contract with for the labor initiative spearheaded employer Aramark by Unite Here and the Service Em- ployees International Union, which CASH have launched a national campaign BY LISA FICKENSCHER against Aramark. At issue are health care insurance food service employees who and workers’ wages, currently about work in corporate cafeterias and ex- $12 an hour at union shops and ap- ecutive dining rooms across the city proximately $8.50 an hour at cafe- are gearing up to go on strike in the terias without contracts. coming weeks if they can’t reach a “There are proposals on the table settlement on a new contract with to reduce health care benefits for FL W their employer, Philadelphia-based some workers,” says Bruce Raynor, A dedicated business relationship manager from HSBC has solutions that Aramark. general president of Unite Here. To help their cause,union organ- Aramark, according to union offi- can help save you time and money. From competitive rates on a business izers have recruited City Council cials, also proposed an unacceptable line of credit to credit card processing solutions, your business relationship Speaker Christine Quinn and city pay increase of 25 cents an hour. manager can help your business thrive. HSBC knows the challenges of running Comptroller William Thompson Jr. “The corporate clients try to a business, and we have many ways to help you meet them. Labor officials held a press confer- hide behind Aramark, and we want ence last week in front of New York them to sign a code-of-conduct >Visit your local branch Life Insurance headquarters at 51 contract to give workers a decent Madison Ave., where 46 employees wage,” adds Mr. Raynor. >1-866-427-2103 are working without a contract. There are about 800 Aramark >us.hsbc.com/business The city officials urged Ara- workers in the city who are mem- mark’s corporate clients to put pres- bers of Local 100 and about 300 sure on the food service conglomer- who are not organized. ate to negotiate with the workers. Products in the United States offered by HSBC Bank USA, N.A. or HSBC National Bank USA. Both banks are Member FDIC. ©2007 HSBC Bank USA, N.A. They also want companies whose COMMENTS? [email protected]

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October 8, 2007 | Crain’s New York Business | 11 CNYB 10-08-07 A 12 10/4/2007 7:51 PM Page 1

VIEWPOINT Driving toward a sane policy editor in chief Rance Crain publisher Jill R. Kaplan ov. eliot spitzer has moved squarely reward for illegal behavior, but they have no stomach for a EDITORIAL into the debate over immigration with mass deportation. editor Greg David deputy managing editors Valerie Block, his decision to allow illegal immigrants That ambivalence is the primary reason that reform of Erik Ipsen to obtain a driver’s license.The governor assistant managing editors immigration laws is stymied in Washington. With no Carmen Fleetwood, Robert Hordt is right to take this step, but more congressional action likely, local politicians are moving to fill columnist Alair Townsend senior reporters Aaron Elstein, important is the broader debate. On the the void. Lisa Fickenscher, Matthew Flamm, matter of immigration, the country is In many states, that translates into anti-immigrant Tom Fredrickson, Samantha Marshall, Anne Michaud, Miriam Kreinin Souccar divided into three groups: policies, including tighter rules on who can legally drive— reporters Theresa Agovino, Barbara Benson, The restrictionists believe that immigrants in general, and ostensibly a national security measure. Mr. Spitzer says the Elisabeth Butler Cordova, Erik Engquist, G Amanda Fung, Hilary Potkewitz, Gale Scott illegal entrants in particular, are dangerously altering the approach doesn’t make sense. Illegal immigrants drive out of restaurant critic Bob Lape demographics and culture of the United States and economic necessity, with or without proper papers. In art director Steven Krupinski deputy art directors Carolyn McClain, contributing to the decline of the middle class by driving addition, research Daniel Mednick down wages.They want to marginalize or even criminalize shows that licensed staff photographer Buck Ennis Mr. Spitzer’s copy desk chief Wendy Zuckerman undocumented immigrants to force many to return home. drivers have fewer copy editors Michele Arboit, reasoning on Thaddeus Rutkowski Even if the restrictionists fail in that objective, they believe accidents. research editor Denise Southwood they will deter others from coming here. Mr. Spitzer’s associate research editor licenses is right, Adrianne Pasquarelli The inclusionists argue that immigrants are crucial to the reasoning on driver’s www.NewYorkBusiness.com growth of the U.S. economy by filling jobs that Americans but just one step licenses is sound, but online editor Catherine Tymkiw online reporter Kira Bindrim don’t want.They see the country as more than capable of his action is only a EDITORIAL AND ADVERTISING OFFICES absorbing different languages and cultures.They want to small step in the effort 711 Third Ave., New York, NY 10017-5806 grant most immigrants already here legal status to protect to bring sanity to the editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0259 them from exploitation. nation’s immigration Cable craincom nyk Caught between those two groups are the undecideds, laws.The inclusionists have it right: The United States has Fax 212.210.0499 Entire contents ©copyright 2007 Crain who are unsettled by the changes that immigrants bring, absorbed many waves of foreigners in its history and has Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP even though they understand that these workers are crucial always emerged the better. All Americans benefit from their Inc., used under license agreement. to the nation’s economy.They see permanent status as a presence, because immigrants help the economy grow. TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. www.NewYorkBusiness.com LETTERS TO THE EDITOR ADVERTISING AND MARKETING advertising director Jeff Adler business development manager Robert N. Grossman senior account manager William E. Squitieri account executives Poll:Mets fans vent frustration Andrew Carlin, Lisa Pearly, Jennifer Siniscalchi, Brigitte Stieglitz MINAYA AND THE OWNERS need to NOT YET. Wait until May. If there is western account manager Ellen Mazen (Los Angeles) 323.370.2477 back off and let Willie run his own no change then, the Mets should sales manager, classified team and get his own people in fire Willie. If there is still no print & online John Gallagher there (see Crain’s online poll, Page change by the All-Star break, fire newsletter product manager 13). Minaya. Catherine Evans Gittens sales coordinator, print & online barbara mcmanus anthony castro Lulé Haznedari sales coordinator Anita Perrino AS A LONGTIME Mets fan, I find WILLIE RANDOLPH and Omar credit Pat Grondziak 313.446.6082 what happened unbelievable, but Minaya are too talented and marketing director Amy Crossman Omar and Willie will find a way to valuable to fire, but they will have marketing manager Jill H. Bottomley marketing coordinator Jenny Mashberg fix the issues. to rethink their strategies and circulation manager Andrea Richardson don israel approaches to handling the assistant circulation manager players. Rosalie Ford I THINK THE TEAM TRUE BLUE: Long- should be fired. suffering fans held Clearly, some of the players will general manager, interactive The meltdown was a team effort, out hope until the be gone for 2008.The veteran- Marc Minardo and a disgrace. season’s bitter end. player leadership seems to have technical producer Danny Porter

david murphy ap images collapsed the second half of the NEW YORK PRODUCTION season. production and pre-press director I WOULD FIRE the manager and all hire his own staff and who won’t Randolph needs to go. But the Mets will rebound next Michael Corsi advertising production manager the coaches. Start 2008 with a take guff from anyone—players, charles walker year because this has to be a Marilyn DeMilta clean slate.The old saying that umpires or opposing teams. traumatic shock to the system of familiarity breeds contempt should Over the last month (and IF I OWNED THE METS, I wouldn’t fire talented players, and the younger PUBLISHED BY CRAIN COMMUNICATIONS INC. be taken one step further and say especially in games with close anybody right now. Instead, I ones will have to learn some very chairman Keith E. Crain president Rance Crain that familiarity breeds plays), Randolph never questioned would tell Minaya privately that painful lessons that they will not secretary Merrilee Crain complacency.That’s exactly what an umpire’s call. Not to get ejected, either the Mets win the pennant in want to repeat. If they do, they will treasurer Mary Kay Crain happened with the 2007 Mets. but to show the players you’ve got 2008 or he’s gone. be in it next year. executive vp, operations William Morrow Bring in a manager who is able to some fire in your belly. Willie david hoffman phyllis weiss haserot senior vp, group publisher Gloria Scoby group vp, technology, circulation, manufacturing Robert C. Adams vice president/production & manufacturing David Kamis WHAT’S COMING UP IN CRAIN’S? chief information officer Paul Dalpiaz corporate circulation director Real Health Meetings Business Guide Technology Patrick Sheposh estate care and conventions of law to growing report / top founder G.D. Crain Jr. (1885-1973) report report report report a small business software firms chairman Mrs. G.D. Crain Jr. (1911-1996) Oct. 15 Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19

12 | Crain’s New York Business | October 8, 2007 CNYB 10-08-07 A 13 10/4/2007 7:58 PM Page 1

state legislators who approve them are the gratitude and campaign con- tributions of these unions. Compared with most private- sector employees, public employees can retire after far fewer years on the job,with larger benefits and cost-of- living adjustments, having made smaller personal contributions. Many of them also enjoy the pre- sumption that any of a host of ail- ments—such as heart disease, lung disease and certain forms of can- cer—is job-related, with no proof required. All this is happening when pri- vate-sector workers are being given more responsibility for their own re- tirement through defined-contri- bution plans. It is also happening when the budgets of New York state and its localities are facing yawning deficits.New York City is projecting a gap of $4.4 billion in 2011, at which time its pension bill will be john h.john howard $6.5 billion—up from $5.7 billion this year. Legislators don’t care about these costs, especially the cost of lo- cal pensions. Although state laws Me-too games govern pensions for both state and local employees, the state does not pay for local pensions.Local taxpay- fleece taxpayers ers do.There is a terrible disconnect between the ability to impose costs and the requirement to pay for y my count, this year the state Legislature has al- them. Public employee unions are ready passed 35 bills liberalizing pensions for state huge contributors in Albany, and they have gotten their money’s and local government employees.Gov.Eliot Spitzer worth. signed five of them, which will cost $37 million (To see union and other contri- when fully phased in. butions, go to the New York state The most costly of the five eliminates the 3% employee con- Board of Elections Web site at B www.elections.state.ny.us and click tribution for SUNY and CUNY employees who have worked on “Disclosure Reports” under “Campaign Finance.”) for 10 years or more. changes so that their We need to scrap the current Frank Padavan, the workers can get what plans and start over. The state con- bill’s Senate sponsor,ar- some others got in years stitution protects pension provi- gued simply that be- past—lower personal sions from being reduced for current cause other groups of contributions, earlier workers and retirees. So the new public employees who retirement, credit for plans would apply to new workers have worked 10 years no periods they did not only. longer have to con- work, and new illnesses Ideally,an independent commis- tribute to their pen- presumed to be work- sion should write them. The com- sions, these workers related and qualifying mission should review trends in the shouldn’t, either. His workers for more gener- private sector, analyze long-term rationale illustrates the ALAIR ous disability benefits. fiscal consequences and recom- me-too basis for so TOWNSEND The only guiding mend plans that are fair to both tax- much of the system. principles I can discern payers and workers alike. And the Each year, public- in their requests are big- state Legislature should not be al- sector unions swarm around Al- ger benefits and less work.The only lowed to play the me-too game bany, lobbying for incremental things that seem to matter to the again.

CRAIN’S ONLINE POLL SHOULD THE METS FIRE THEIR MANAGER, GENERAL MANAGER, OR NO ONE? A MAJORITY of the 423 respondents backed the New York Mets’ decision not to General ax Manager Willie Randolph or General Manager 22% Manager Omar Minaya after the team’s . Omar Minaya losing streak that kept the Mets out of the No one; the Mets will playoffs. The dissenters were almost .59% Manager rebound 19%. Willie evenly split between those saying that Mr. next year Randolph Randolph should go and those calling for Mr. Minaya’s ouster.

For readers’ comments, see Letters to the Editor on Page 12.

October 8, 2007 | Crain’s New York Business | 13 CNYB 10-08-07 A 14 10/5/2007 2:46 PM Page 1

Community Center has returned a $5,000 grant from City Councilman Robert Jackson because MIKE’S FAVORITE It could be Quinn THE INSIDER of his “ambivalent” stand on IF POLICE COMMISSIONER Raymond Kelly Columbia University’s expansion, does not run for mayor in 2009, close by Erik Engquist and Anne Michaud center leaders say. Mirabal opposes observers of Mayor Michael Bloomberg the plan, which will displace say signs increasingly point to the his residents. endorsing City Council Speaker Susan Russell , Mr. Jackson’s chief Christine Quinn to succeed him as of staff, says the center is only mayor. They have been partners more hurting its clients and that the Health insurers often than not on major policy initiatives, councilman’s position was the same and even when they have disagreed, the offer 20% rate cut when Mirabal applied for the grant zuma earlier this year: He wants the Kelly (left), Quinn and Bloomberg mayor hasn’t singled out Ms. Quinn (and school to agree to community she has returned the favor). group of new york health Insiders say that Mr. Bloomberg and his political maven, Deputy Mayor insurers, led by Empire Blue benefits for West Harlem and to refrain from using eminent Kevin Sheekey, genuinely like the speaker. But they’re also motivated by a Cross Blue Shield downstate domain. desire to prevent Rep. Anthony Weiner, D-Queens, from winning the A mayoralty in 2009. In private conversations, Bloomberg is critical of Rep. and Excellus upstate, are seeking support for a plan that they say Weiner but not other potential candidates, like City Comptroller William Union lobbyist Thompson and Bronx Borough President Adolfo Carrión. will cut rates for individuals and “He’s neutral on Billy; he’s fine with Adolfo,” one legislator says. “He small groups by about 20%. moving on absolutely hates Anthony Weiner.” Some trace the antipathy back to

istockphoto The plan would combine those jennifer cunningham, former comments Mr. Weiner made during Mr. Bloomberg’s 2001 campaign. categories with the underperforming Healthy New York political director for 1199 SEIU, is Though Mr. Kelly has consistently denied any interest in elected office, a leaving her “of counsel” post at source says his senior staffers believe that he will be a candidate in 2009. program, which provides subsidies to small employers, to James Featherstonehaugh’s Albany They point to his focus on shoring up the department’s relationship with the create a single group. Healthy New York’s stop-loss provision lobbying firm—and taking the community, and minorities in particular. would be reconfigured to provide union’s business with her. Ms. Cunningham will be of state coverage for any claim over Business groups say they like the counsel at Cordo & Co.The firm is $20,000, which would lower costs. concept but need more details to being formed by John Cordo, who is president of the city Housing month, but there was more to the One executive involved says the decide whether to support it. A also leaving Featherstonehaugh Development Corp. gesture than good public initiative could provide coverage to split could emerge among insurers. Wiley Clyne & Cordo. He is a The favorite is Mark Jahr,a relations. 500,000 uninsured residents within Only those carriers that pay 85% of former staffer for Senate Majority Citibank executive in the The Community Development Corp. five years. premiums in claims could parti- Leader Joseph Bruno. community development division. has let the Bloomberg admin- Under the proposal, the state cipate. While Empire and Excellus Ms. Cunningham will also Mr. Jahr worked on the Queens istration know that it expects to be would need to contribute $750 meet that standard, others do not continue working for West development, and his name compensated with a zoning million annually. Small companies and would not be able to offer Knickerbocker SKD. surfaced a couple of years ago when change. Denser zoning will create already providing coverage, which coverage under the program. City Hall was looking for someone more revenue for the project, on are currently prohibited from to be president of the Economic the north Brooklyn waterfront. enrolling in Healthy New York, Housing head Development Corp. Developers generally oppose could transfer to the new fund. Community center hopefuls lined up Matthew Wambua, an adviser to landmark designations because Doctors and hospitals would also be turns down money Deputy Mayor Daniel Doctoroff,is they add expense and reduce expected to make concessions that three candidates have emerged also in the running, as is James design flexibility. would contribute to lower rates. the mirabal sisters Cultural and to succeed Emily Youssouf as McSpirit, formerly with the city Law Department and now with nonprofit developer Phipps Development czar Houses. questions numbers Ms. Youssouf and an HDC deputy, John Crotty, are starting an charles gargano, who headed affordable-housing division at J.P. the Empire State Development Morgan Chase. Corp. for Gov. George Pataki,says there’s no question that the state could build a “meaningful Owens critiques expansion” of the Jacob K. Javits Black Caucus Convention Center within the $1.8 billion budget he crafted. Mr. former rep.major owens is Gargano is mystified by successor writing a book about the Patrick Foye’s claim that roughly the Congressional Black Caucus, of which same design will cost about $1.4 he was a member until he retired billion more. last year. The Peacock Elite will be a Mr. Gargano (below) says that “subjective” study of the caucus’ even though he had to cut some past 24 years. items, like a new facade, enlarging The title is a metaphor about meeting rooms “how the obsession with image and adding a drives politicians to the point ballroom are where they forget about vital to the substance,” says the Brooklyn center’s serving Democrat, who blames the pursuit the city into of campaign money and media the future. The In the automotive business, logistics is everything. coverage. roof and air- “The mission of NJ CAR is to serve the essential business needs of automotive retailers Mr. Owens has been given an conditioning throughout New Jersey.This state has a large and vibrant network of vehicle dealers office at the Library of Congress system also

and they all rely on the port to get the cars here on time.With nearly 750,000 cars and expects to finish the project by need repair. zuma entering or leaving the port every year, logistics is everything.You may not give much thought to the port, but it is truly the engine that keeps our economy year-end.Two publishers have “Right now, the Javits Center revved up. For the automotive industry, the Port of expressed interest. works for trade shows but is a New York and New Jersey means business.” disaster as a convention center,” James B.Appleton Mr. Gargano says. “There should President NJ Coalition of Automotive Retailers Builder looking be a way to find the money in (NJ CAR) for sweet deal Albany to build it.” Insiders say that, among other the developer planning to things, antiterrorism upgrades, The men and women of the port of New York and New Jersey... convert the iconic Domino Sugar higher construction costs, and .com refinery into market-rate and energy efficiency measures to meet affordable apartments took the LEED standards have added

New York Shipping Association, Inc. © 2007 unusual step of supporting its hundreds of millions of dollars to designation as a landmark last the project’s price tag. I

14 | Crain’s New York Business | October 8, 2007 CNYB 10-08-07 A 15 10/4/2007 5:44 PM Page 1

NEIGHBORHOOD JOURNAL S.I. housing project a business drag

accepting proposals for the first able housing,and off-street parking. Leroy Comrie. But he says devel- Wilted development project in a freshly rezoned swath of The guidelines allow for any- opers should aim to alleviate the usurped commercial downtown Jamaica.The EDC aims where from 35,000 to 70,000 square parking crisis in the area, not exac- to replace a two-story, 85,000- feet of retail and require that 20% of erbate it. LAND GRAB: Residential zoning rules led S.I. space; new life eyed square-foot garage on 168th Street the housing units must be “perma- The initiative comes on the heels developers to seek out commercial parcels. just off Jamaica Avenue with a nently affordable” rentals. In a new of the unprecedented rezoning of for Queens garage mixed-use development. twist, the EDC is also demanding 370 blocks of Jamaica, which the EDC President Robert Lieber “sustainable” design. council passed in August over oppo- agreement that allowed for develop- ongtime staten Is- says such projects will help Jamaica “I hope this project will con- sition from some in the mostly resi- ments of up to seven stories along landers remember a time “realize its potential.” tribute to the economic renaissance dential neighborhood of one- and main commercial avenues, a signifi- when just about any new The agency stipulates that the of downtown Jamaica and result in two-family homes. cant compromise from the proposed house in the borough development must include retail jobs for residents of Southeast After months of negotiation, the 12 stories. was snapped up. Way space, market-rate as well as afford- Queens,” says City Councilman city and local leaders reached an —hilary potkewitz Lback in, say, 2005. Today,many new houses go beg- ging for buyers. But in the case of Dartmouth Estates in the island’s New Dorp section, more than just the builder has suffered. The devel- opment, which has struggled to at- tract buyers since opening for sales over a year ago, used commercial land where businesses might have flourished. Even worse, critics say,it is a residential cavity dragging down the surrounding commercial area. “The whole thing is a disaster,” says city Councilman James Oddo, who represents the area. “We don’t want to lose our commercial space.” Zoning to protect such space and the jobs it generates took effect some months after plans for Dart- mouth Estates’ 72 single-family at- tached houses were approved. Building on residential land in Staten Island had already been cur- tailed in an effort to put the brakes on population and traffic growth. Those residential restrictions led homebuilders to seek out commer- cial property, such as the former bowling alley site that became Dart- mouth Estates. “These guys put shovel in the ground and built this monstrosity as-of-right,” Mr. Oddo says, mean- ing that zoning allowed it. Offers last year by the project’s realtor, Casandra Properties, to cut $15,000 from the houses’ $464,900 price tag or give each buyer a Saturn Ion failed to ignite much interest. The company did not return calls for comment. The property continues to lan- guish,as does a parcel next to it.That plot was once home to a Waldbaum’s supermarket and Frank’s Nursery & Craft, which closed in 2005 and is now covered with graffiti. Plans to put a Target there fell though earli- er this year amid concerns about traffic. Mr. Oddo is so frustrated that he has called—facetiously—for Casan- dra to tear down its houses and pur- sue a commercial user. In a letter to the company,he asked,“What about a bowling alley?” —erik engquist Parking paradise in Jamaica the city is turning an old tune on its head in Jamaica, Queens. Instead of paving paradise to put up a parking lot, developers are being asked to tear down a parking lot to build paradise. Late last month, the city Eco- nomic Development Corp. began

October 8, 2007 | Crain’s New York Business | 15 CNYB 10-08-07 A 16 10/5/2007 2:48 PM Page 1

WEEK IN REVIEW For daily news updates, go to www.NewYorkBusiness.com

co-founded by former Morgan ECONOMIC SPOTLIGHT Stanley star banker Joseph Perella last year, plans to buy Xerion Capital Partners for an undisclosed amount. Xerion, a hedge fund that manages about $400 million, focuses mostly on distressed-credit investments. Private equity transactions a private equity group led by J.C. Flowers & Co. revised its bid for student lender Sallie Mae to $50 per share plus warrants.The original offer, which Sallie Mae had accepted, was $60 a share in cash. … J.C. Flowers also secured as much as $30.6 billion for a potential buyout of ailing British MSG, Knicks coach found guilty bank Northern Rock. MADISON SQUARE GARDEN and NEW YORK KNICKS coach Nasdaq acquires Isiah Thomas (above) were found guilty of sexual Boston exchange discrimination against former Knicks marketing executive ANUCHA BROWNE SANDERS. Madison Square Garden was the nasdaq stock market inc. Economy Watch said it would buy the 173-year-old ordered to pay $11.6 million: $6 million for fostering a Boston Stock Exchange for about The NY area price index posted its first month-to-month drop since last No- hostile work environment and $5.6 million for firing Ms. $61 million.The deal includes the vember, and the lowest 12-month rise since the period ended in June 2002. Browne Sanders. MSG Chairman James Dolan is exchange’s holding company, BSE JULY ’07 AUGUST ’07 COMPARISON Group, as well as the Boston responsible for paying $3 million of that award. MSG Equities Exchange, the Boston 1 NY area inflation change +0.2% -0.1% +1.9% officials and Mr. Thomas, who was found guilty of sexual Stock Exchange Clearing Corp. 2 NYC unemployment rate 5.7% 5.7% 4.6% harassment, plan to appeal. and BOX Regulation. AUGUST JOB TOTAL3 12-MONTH CHANGE NYC employment 3,704,800 +55,700 landov Verizon sued for 1-Inflation rate for the latest 12-month period. 2-U.S. unemployment rate. 3-Not seasonally expenses. Advocacy group Good adjusted. overstating figures Ex-MetLife broker Jobs New York claims NYC Hotel Stats Broadway Stats charged with fraud that the team used verizon communications inc. a portion of the was sued by advertising company Room rates and occupancy levels rose Attendance and gross edged up in former metlife inc. broker funds—$5 mil- Digital Art Services Inc. for in August, pushing occupancy above the week ended 9/30, The League Kevin Dunn was charged with lion in annual allegedly misstating its number of the 90% mark for the first time since of American Theatres and Producers mail and wire fraud. He allegedly rent subsidies, FiOS subscribers. Digital Art June ’05, PKF Consulting data show. says. But the capacity filled at Broad- cheated a Sept. 11 widow out of meant to finance claims that Verizon committed Averages for the first eight months way houses, which topped 90% for $250,000 that she received as part stadium planning— fraud when it overstated total of ’07 were $269.06 and 86.0%. much of August, stood at 78.4%. of a $2 million benefit after the to pay for items such as crystal subscribership to its fiber-optic death of her husband, a police baseballs and bar tabs. service by including pending officer. Mr. Dunn faces a customers in the New York area. maximum of 20 years in prison. No Buffett for Bear Loews sells Bulova bear stearns cos. executives said Discrimination suit they are not looking for any cash snares Bloomberg loews corp. plans to sell infusions from outside investors in watchmaker Bulova Corp. to an effort to dispel rumors that three women involved in a Tokyo’s Citizen Holdings Co. Warren Buffett is eyeing a 20% discrimination lawsuit against for $250 million. Loews, which is stake in the company. Bear Stearns Bloomberg LP filed a complaint run by New York’s wealthy Tisch Chief Executive James Cayne said alleging that Mayor Michael family, has long owned a stake in the company is beginning to see Bloomberg (below) condoned and Woodside, Queens-based Bulova. increased liquidity after a perpetuated discrimination It purchased the last 3% of the turbulent summer. … Federal against pregnant employees at his company in 2005. regulators opened a criminal company.The two former Capital IQ’s Weekly Deals Report investigation into two mortgage- employees and one current related Bear hedge funds that staffer are demanding at least TRANSACTION SIZE Citi buys out Nikko COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE collapsed this summer. $48 million each, plus attorneys’ citigroup inc. said it will buy the fees and interests. George Little Management $155.0 DMG World Media (USA) Inc. SB M&A 32% of Japan’s Nikko Cordial —from staff reports and White Plains Corp. that it doesn’t already own Huffington Post bloomberg news reports Vault.com Inc. $85.0 Veronis Suhler Stevenson FB M&A in a $4.6 billion stock swap. … Manhattan gets new CEO Citigroup warned that its third- Waterfront Media Inc. $25.0 BEV Capital, Foundation Capital, Rho GCI Manhattan Capital Partners Inc., NeoCarta Ventures Inc., quarter earnings would show a the huffington post, a news Scale Venture Partners; Time Warner Investments drop of as much as 60%, largely Web site, hired Betsy Morgan as Rave Wireless Inc. $18.0 RRE Ventures, Sigma Partners, GCI due to more than $3 billion worth chief executive. Ms. Morgan, 38, Manhattan Trilogy Equity Partners, Bain Capital Ventures of loans tied to subprime was formerly general manager of WebEnergy.Net Inc. $17.0 Bessemer Venture Partners, New York City GCI mortgages and leveraged buyouts. CBSNews.com. She succeeds Manhattan Investment Fund Manager Inc., Schneider Huffington Post interim CEO Electric Ventures, Expansion Capital Partners, Investec Trust (Guernsey) Ltd. Yankees accused Kenneth Lerer, who co-founded Selected deals announced during the week of Sept. 23 for companies headquartered in metro New the site. He will become chairman. York. 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 of misusing funds represents new money invested in a company for a minority stake. SB M&A: Strategic buyer M&A Perella buys Xerion represents a minority or majority acquisition of existing shares of a company without the participa- the new york yankees were tion of a financial buyer. accused of using city subsidies to advisory and securities firm zuma bekka lindström bekka finance nearly $60,000 in frivolous Perella Weinberg Partners,

16 | Crain’s New York Business | October 8, 2007 CNYB 10-08-07 A 17 10/4/2007 4:53 PM Page 1

THE WEEKS AHEAD

THIS WEEK’S EVENTS demystifying media and entertainment door. (212) 227-6556. Public Accountants holds seminar on and West 27th Street, building D, Katie OCTOBER 9 investment opportunities. 7:30 a.m. to OCTOBER 17 tax planning. 8:30 a.m. to 12:30 p.m., 3 Murphy Amphitheatre. Fee: $100 Holtz Rubenstein Reminick holds not- 10 a.m., 4 W. 43rd St., main ballroom. SalemGlobal Internet Website Park Ave., 19th floor. Free. members, $125 nonmembers. for-profit fiscal workshop. 1:30 p.m. to 5 Fee: $25 members, $35 nonmembers. Marketing holds networking reception. (212) 618-8862. (201) 692-8087 or retailmarketingsoci@ p.m., Friars Club, 57 E. 55th St. Free. (212) 725-2295 or [email protected]. 8 a.m. to 10 a.m., UBS Conference OCTOBER 23 retailmarketingsociety.org. (212) 697-6900 or [email protected]. OCTOBER 17 Center, 1285 Sixth Ave., 14th floor. Strategies for Growth and Gotham City NOVEMBER 1 OCTOBER 10 Score NYC holds seminar on financing Free. (646) 217-4184 or Networking holds program on Crain’s New York Business holds arts and Brooklyn Business Base holds and business accounting basics. 9 a.m. to [email protected]. optimizing business growth. 6 p.m. to culture breakfast. 8 a.m. to 9:30 a.m., networking breakfast. 7:30 a.m. to 9 1 p.m., New York State Certified Public 8:30 p.m., Friar’s Club, 57 E. 55th St. Grand Hyatt, 42nd Street and Grand a.m., Brooklyn Economic Development Accountants, 3 Park Ave., 19th floor, OCTOBER 22-28 Free. Advance registration required. Central Terminal. Fee: $65. Corp., 175 Remsen St., suite 350. room C. Fee: $40 in advance, $50 at OCTOBER 22 (800) 226-2428 or (212) 210-0739 or Fee: $10. (516) 538-4280 or door. (212) 264-4507 or Financial Women’s Association holds [email protected]. www.newyorkbusiness.com/events. [email protected]. [email protected]. panel discussion on transitioning to a —adrianne pasquarelli OCTOBER 10 OCTOBER 17 nonprofit career. 5:45 p.m. to 8 p.m., OCTOBER 29-NOVEMBER 4 New York Investing Meetup holds Networking for Professionals holds Alliance Française, 22 E. 60th St. Fee: OCTOBER 30 lecture on investing in an inflationary networking reception. 6:30 p.m. to 8:30 $35 members, $45 nonmembers. Retail Marketing Society holds More meetings online at environment. 6:30 p.m. to 8:30 p.m., p.m., TechSpace, 41 E. 11th St., 11th (212) 533-2141. conference on the Christmas 2007 www.newyorkbusiness.com 1290 Sixth Ave. Free. Advance floor. Fee: $25 members and $35 OCTOBER 23 forecast. 8 a.m. to 12 p.m., Fashion Click on “Events” registration required. (212) 255-7327. nonmembers in advance; $40 for all at New York State Society of Certified Institute of Technology, Seventh Avenue OCTOBER 10 Illuminating Engineering Society of New York holds information session on the new codes and their effect on lighting design. 5:30 p.m. to 8 p.m., Center for Architecture, 536 La Guardia Place. Fee: free for members, $10 nonmembers. (212) 473-3139. OCTOBER 11 Crain’s New York Business holds networking breakfast and program with Avi Schick, chairman of the Lower Manhattan Development Corp. 8 a.m. to 9:30 a.m., Hilton New York, 1335 Sixth Ave. Fee: $65. (212) 210-0739 or www.newyorkbusiness.com/events. OCTOBER 11 Michelin holds forum on restaurant reviewing in New York City. 7 p.m. to 9 p.m., Borders Books & Music, 10 Columbus Circle, second floor. Free. (212) 957-3005. OCTOBER 11 Port Authority of New York and New Jersey and Phoenix Constructors JV hold conference on the World Trade Center transportation hub project. 8 a.m. to 12 p.m., Cooper Union, Seventh Street and Fourth Avenue. Free. (212) 344-4500 or [email protected]. OCTOBER 11 B’nai B’rith Real Estate Unit holds lunch meeting on the new Harlem. 12 p.m. to 2 p.m., Cornell Club, 6 E. 44th St., Ivy Room. Fee: $55 in advance, $65 at door. (212) 885-7239 or [email protected]. OCTOBER 12 Pace University’s Small Business Development Center holds workshop on QuickBooks and basic bookkeeping. 9 a.m. to 5 p.m., 1 Pace Plaza, room W-404. Fee: $149. (212) 618-6655 or [email protected]. OCTOBER 15-21 OCTOBER 15 New York Society of Security Analysts holds forum on transitioning to the not- for-profit sector. 5:30 p.m. to 7:45 p.m., 1177 Sixth Ave., second floor. Fee: free for members, $20 nonmembers. (646) 871-3405 or [email protected]. OCTOBER 16 New York Building Congress holds MAGICAL PC breakfast forum with president of New York City Economic Development Corp., Robert Lieber. 8 a.m. to 9:45 a.m., Hilton New York, 1335 Sixth Ave., Mercury Ballroom. Fee: $60 members, MANAGEMENT. $80 nonmembers. (212) 481-9230. OCTOBER 17 General Electric holds breakfast on

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them in the print edition on a space-available basis. TM Events in New York City with admission fees of less With Intel® vPro processor technology, your IT manager or IT service provider can diagnose and repair than $300 are considered for the print publication. PCs remotely, even when they’re off or the operating system is down.* So you can get back to what’s Listings can be submitted only through the Crain’s really important: managing your business. Learn how easy it can be at intel.com/smallbusiness Web site. To submit a calendar listing, go to www.newyorkbusiness.com and click on “Events.” Intel® AMT requires the computer system to have an enabled chipset, network hardware and software, a connection with a power source and a corporate network connection. Setup requires configuration Sponsors have a choice of several free or paid list- and may require scripting with the management console or further integration into existing security frameworks, and modifications or implementation of new business processes. For more information, ing options. All business events will be posted see http://www.intel.com/technology/manage/iamt ©2007 Intel Corporation. Intel, the Intel logo and Intel vPro are trademarks of Intel Corporation in the U.S. and other countries. All rights reserved. online within two business days. Crain’s can neither confirm receipt of listings nor say if or when event listings will appear in the print edition.

October 8, 2007 | Crain’s New York Business | 17 CNYB 10-08-07 A 18 10/4/2007 3:00 PM Page 1

REAL ESTATE Like your home, Deals Decision to move your mortgage should rest colored by price

on a solid foundation. boutiques in Saks Fifth Avenue. It GlobalHue triples closed those two shops to make the space by shunning hot SoHo store its exclusive U.S. dis- tributor.The location,slated to open areas for lower rent; in February, will sell to walk-in cus- retailer guns for SoHo tomers and interior designers. At BNY Mellon Wealth Management, SoHo makes sense for Flair,since arketing firm the area is already home to a number we keep our mortgage loans in our own portfolio. GlobalHue is more of high-end furniture stores.But the than tripling its company made a unique concession space by moving to to seal the deal: When it moves in, This means we are able to customize the financial dis- Flair will be neighbors with Weap- Mtrict, eschewing areas of Manhattan ons Specialists,which supplies guns, our mortgages to each client situation, that are more popular with advertis- knives and combat gear for movies, ing and media firms. commercials and the stage. approve and close loans quickly, and provide clients The Southfield, Mich.-based The theatrical prop company, company signed a 10-year lease for which has been using the entire with peace of mind – in any market environment. 40,000 square feet at 123 William St., 3,000-square-foot site, will consoli- between Fulton and John streets. date into a 1,000-square-foot space GlobalHue has outgrown the in the back and basement of the Our experienced mortgage specialists 12,000 square feet it is renting at 300 building.It will use an entrance sep- arate from the one used by Flair. will work with you and your advisors to The prop firm, which owns the space,wanted to stay at its current lo- recommend a program that recognizes cation so that it wouldn’t have to reap- ply for the city permits required to house its arsenal.It tried for two years your unique needs, tax situation, to find a retail partner that would take over the storefront. But the and liquidity requirements. sight of all those machine guns and knives scared off potential tenants. “Every other customer would get really freaked out,” says David Bak- er, the Isaacs & Co. broker who ne- gotiated on behalf of Weapons Spe- cialists.The asking rent was $85 per square foot. 123 WILLIAM ST. Flair’s executives jumped on the There can be stability, even in today’s mortgage market. deal. We invite you to claim a piece of it by contacting Park Ave.South,between East 22nd “It will be a perfect fit for Flair,” and East 23rd streets. But asking says Stuart Moss, the broker from Erin M. Gorman, Managing Director, prices in areas like SoHo and Hudson The Corcoran Group Inc. who rep- Square that are favored by creative resented the tenant. “Interior de- at 1-800-446-0278 or [email protected]. companies are roughly $60 to $70 a signers shopping for product will square foot, says Elizabeth Houley, not see any machine guns.” a broker at Newmark Knight Frank, —elisabeth butler cordova which represented GlobalHue. When the company moves into the 17th and 18th floors of its new Hitting the Street, location in the first quarter of 2008, bag and baggage it will be paying just over $36 a Across market cycles. Over generations. Beyond expectations. square foot.“The rent is a very good upscale luggage maker Tumi is The Practice of Wealth Management.® price relative to the market,” says joining the financial district’s grow- Michael McKenna of Cushman & ing enclave of luxury retailers. It re- Wakefield Inc.,who represented the cently signed a 10-year lease for landlord, A&M Properties. 1,100 square feet at 67 Wall St.,be- GlobalHue is a minority-owned tween Pearl and Hanover streets. firm specializing in advertising tar- Hermès, Thomas Pink and geted at African-American, His- BMW have already opened stores in panic and Asian consumers, its Web the area; jeweler Tiffany and suit site says.Its clients include American maker Canali are slated to debut soon. Airlines, Verizon Wireless, Johnson The asking rent for the Tumi lo- Investment Management & Johnson and DaimlerChrysler. cation was $350 per square foot. Wealth and Estate Planning —theresa agovino “We had a stack of offers for this space, which was unheard-of a few Private Banking and Finance years ago,” says Darrell Rubens, the Family Office Services SoHo getting Winick Realty Group broker who Business Banking touch of Flair represented property owner Metro Loft Management in the deal. Charitable Gift Services italian furniture retailer Flair Beth Rosen of Robert K. Futter- Home Collection plans to open its man & Associates negotiated on be- first U.S. store in SoHo. Florence- half of the tenant. www.bnymellon.com based Flair recently signed a five-year The Wall Street store, which will lease for 2,000 square feet at 88 Grand be Tumi’s sixth location in the city, St., at the corner of Greene Street. will carry its full line. One of Tumi’s The company tested the Ameri- sturdy backpacks sells for about $300. Mellon Bank, N.A. Member FDIC © 2007 The Bank of New York Mellon Corporation. can market several years ago with —elisabeth butler cordova Project21 9/24/072:18PMPage1

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SMALL BUSINESS INSIDE How to fire problem customers—even big ones PAGE 26 “I want people to be able to start building their Web site immediately.” Anthony Casalena, founder, Squarespace, Page 28

YOEL BORGENICHT Caterer rounded up investors and took out a second mortgage to get into real estate gobbles development. upelite venues Exclusive deals are growth ticket for top-end firm, but yacht founders

BY LOUISE KRAMER

nearly 20 years ago, catering firm Abigail Kirsch hit what appeared to be a dead end. An- nual revenue was stuck at about ALTERNATIVES $5 million, and ANGEL INVESTORS intense compe- tition in an over- VENTURE CAPITALISTS crowded market MICROLENDERS LANDMARKS was taking its CREDIT UNIONS Seventh in an toll. Pages 23-24 occasional “We were series on NYC burned out,” institutions says Jim Kirsch, chief executive of the company founded by his parents,Abigail and Bob Kirsch. In 1989, the Kirsches took a Credit crunch Rx’s risk and changed their business model. Instead of confining themselves to others’ sites and competing on cuisine and serv- Savvy entrepreneurs turn to variety of nonbank lenders ice alone, they signed a 25-year lease for Tappan Hill, a man- BY TINA TRASTER “Every bank turned us down because credit in the real sion in Tarrytown, N.Y., with estate market is very tight now and because I didn’t have a stunning Hudson River views and enough space to host two no matter how tight credit gets, and no matter how track record as a developer,” says Mr. Borgenicht, who had functions simultaneously. frightened bankers become of potential risks, resourceful sold his graphic design firm to jump into real estate. He This was no ordinary cater- entrepreneurs can always find ways to maneuver around planned to purchase a two-family Harlem townhouse and ing hall. “All of a sudden, we almost any financial roadblock. convert it into two large upscale condos. had something unique to offer,” Mr. Kirsch says. Just ask Yoel Borgenicht,who chose this year to launch a Unable to land a bank loan, Mr. Borgenicht rounded up a Clients began queuing up. career as—of all things—a real estate developer. group of investors among friends See CREDIT on Page 23

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October 8, 2007 | Crain’s New York Business | 21 CNYB 10-08-07 A 22 10/4/2007 1:52 PM Page 1

REPORT SMALL BUSINESS

Its first ad, in The New York Times, which used the tag line “45 minutes IN A NUTSHELL Caterer hones an exclusive edge from Broadway and worlds apart,” drew a flurry of calls. ABIGAIL KIRSCH Continued from Page 21 Sachs.The caterer has 325 full-time into modernizing Tappan Hill. Eyes on the city Revenues more than doubled with- and 400 part-time workers, and of- Having made such a commitment, having gambled big and won,the FOUNDED in the following two years, to $11 fices in Manhattan and Westch- the Kirsches had little choice but to Kirsches raised their bets and shift- 1975 million, and with the exception of ester. It is one of the top operations get aggressive about finding busi- ed their focus from Westchester to the two years after Sept. 11, they in an industry that generates annu- ness rather than rely on referrals and the city. EMPLOYEES have grown at double-digit rates an- al revenues of about $1.5 billion in repeat clients, which it had largely The process began a decade ago, 325 full-time, 400 part-time nually ever since. the city. always done. when the firm signed an exclusive MEALS SERVED IN 2006 Today, 32 years and mountains Getting there took more than a “After you spend that kind of deal to cater all events at the New 400,000 of canapés after its founding, Abi- revised strategy, however. It took a money, you better not rely on word York Botanical Garden. Then, in gail Kirsch ranks as an institution. strong stomach.The family sank $5 of mouth,” says Mr. Kirsch, who has 1998, Abigail Kirsch opened its NUMBER OF EVENTS IN 2006 Accounts include powerhouses million—far more than anticipat- been chief executive since 1994. first Manhattan venue in partner- 2,500 like Tiffany & Co. and Goldman ed—in loans and company money Abigail Kirsch began advertising. ship with Chelsea Piers. Today, SIGNATURE DISHES Foie gras lollipop, caviar potato coins PRICES $60 to $300-plus per person

85% of the company’s revenues flow from events at its five exclusive venues. “It’s a smart strategy,” says food service consultant Arlene Spiegel. “It lets your brand be associated with a venue’s brand.” The newest location is Stage 6 at Steiner Studios in the Brooklyn Navy Yard, which offers dazzling views of Manhattan across the East River. Not all settings—even the most dramatic ones—pan out, though. For example, the company paid $1.1 million in 2003 for a yacht that it christened Abigail K. “It was perfect for a small, seated event,”says Mr.Kirsch,sitting in the company’s Manhattan office.Trou- ble was, the boat broke even at best. It is now for sale. “It wasn’t going to grow, even though it was sexy and fun,” Mr. Kirsch concedes. As important as sites are, of course, no one is going to hire a caterer who serves bad food. The Kirsches covered that base 20 years ago by hiring Alison Awerbuch, who was first in her class at the Culi- nary Institute of America. She is now a partner in the firm and its chief culinary executive. WHY SHOULD YOU BE QUOTING HIP? Client-oriented to ensure that food and service re- ASK THE BROKER WHO TOOK YOUR SALE. main up to snuff, Abigail Kirsch regularly surveys clients. “They are arguably one of the If you’re not quoting HIP, you can rest assured that your competition is. single most client-focused busi- nesses I know,” says Lee Perlman, • 6% Commission on HIP Select EPO/PPO* chief administrative officer of the Greater New York Hospital Associ- • 4% Commission on HIP Classic HMO ation and an Abigail Kirsch cus- tomer. “They treat every event as • Plans starting as low as $223/mo. • Free eyeglasses, massage therapy, $200 gym though it is the first they have ever • Leading facilities like Montefiore Medical Center, reimbursement and alternative medicine.** done and the last they will ever do.” North Shore / Long Island Jewish and Lenox Hill Hospital. Behind the scenes, Mr. Kirsch • Rated “excellent” by the National Committee for has made investments to enhance • 25,000 physicians in neighborhoods where your Quality Assurance for Commercial HMO & POS plans. efficiencies. clients live and work. • Flexible cost-sharing options available. For example, in 2005, the com- • A broad range of products to suit your client’s needs pany adopted standard operating procedures that cover everything for both slice or full replacement. from making a sales call to ordering food and closing down a kitchen.All Call for more the information is now online for Visit HIPUSA.COM information: 1-888-447-7864 employees to access. “We’ve added the systems and processes we need to have in place to * For new business on Select EPO/PPO only. Accredited by the National Committee for Quality Assurance (NCQA). A nationally recognized be able to sleep at night,”Mr.Kirsch ** Only applies to HIP Classic and Small Group HIP Select EPO/PPO products. evaluation that purchasers, regulators, and consumers can use to assess managed care plans. says. ® 2007 HIP Health Plan of New York. Commercial HMO and Commercial Point-of-Service plans. COMMENTS? [email protected]

22 | Crain’s New York Business | October 8, 2007 CNYB 10-08-07 A 23 10/4/2007 1:56 PM Page 1

REPORT SMALL BUSINESS BANKS TIGHTEN THEIR LENDING STANDARDS THE CREDIT CRUNCH that began in the summer with the home as collateral for a loan or who generate needed cash Credit crunch Rx’s subprime mortgage meltdown is spreading. by taking out home equity loans. With the value of Faced with the prospect of a slowing economy and residential real estate now falling steeply in many parts of mounting losses on a wide range of consumer and the area, banks are understandably less willing to extent Continued from Page 21 which they have either worked or corporate loans, many banks are suddenly much warier of those sorts of credits. and professional associates and also invested, and are thus able to help risks. Last month’s moves by the Federal Reserve Bank to “Banks are pursuing small businesses as aggressively took out a second mortgage on his management line up employees, lower interest rates will help counter some of that lender as ever,” says Brian Gurski, acting director of the small vacation home. He purchased the sales outlets and suppliers. caution, but small business owners should expect to face business development center at La Guardia Community house on West 136th Street and Mr. Binkley wanted to raise tougher borrowing standards ahead. College in Long Island City, Queens. “But if a business plans to begin work on the conver- $350,000, but he also knew that he “Conventional lenders will be tightening their lending owner’s home is not valued at what they thought it was, sion this month. needed much more than that. parameters,” says Chris that could affect their ability to With the economic clouds dark- “Angels bring introductions, ad- MANY BANKS ening and banks getting pickier vice and credibility to your busi- Kwiatkowski, head of the SBA qualify for a bank loan.” lending division at Banco Popular. are suddenly Some advisers insist that it is about who they will do business ness,” says Mr. Binkley. After after much warier with—and more demanding about talking with several groups and pre- “The banks will not be as willing to of risks. already happening. how much they will charge for their senting detailed business plans, he take a chance on a larger loan, a “Absolutely, it’s more difficult loans—small business owners may got the money and advice he was startup or an acquisition unless for anyone to borrow money,” says need to follow Mr. Borgenicht’s ex- seeking in 2005 from Golden Seeds, it’s totally collateralized.” Herb Winkler, chairman of the New ample and look elsewhere for funds. a group of 55 angels based in New Recent surveys of small York City chapter of the Service Happily, the options are myriad. York and Boston, plus several other business owners show mounting Corps of Retired Executives, the Four of them follow. similar outfits. concern but no hard evidence of counseling arm of the U.S. Small Angels typically invest anywhere an actual credit crunch. For Business Administration. ANGEL INVESTORS from $50,000 to $500,000.In return example, a poll by the National As credit conditions tighten, for their money and time, most of- Federation of Independent Business found that in August many people expect to see a surge in SBA loans. Typically, ten the angels demand stakes in the a mere 7% of small business owners reported that loans these are credits made by banks, but the Small Business Heaven-sent source companies they take on, which they had become harder to obtain. That marked a steep two- Administration guarantees up to 80% of the principal. That of seed money typically look to sell to an acquiring percentage-point climb from the previous month, however. fat cushion makes it easier for banks to say yes to the company or a venture capital firm More troubling are the results of a survey conducted by borrower. The other good news is that SBA loans extend for it takes a lot more than a great within five years. Discover Business Card. That survey revealed that 41% of up to 20 years. The downside of such loans, however, is idea—or even a great business Generally, angels work in groups small businesses had experienced “issues” in cash flow that because of the additional administrative complexities plan—to impress a bank. Byron —pooling their capital and expertise. over the previous 90 days, up steeply from 35% in July. associated with the credits, interest rates are generally Binkley, who quit his job as an ana- A classic example is Golden Seeds, Cash flow is an important indicator used by bank loan about one percentage point higher than on a conventional lyst at Goldman Sachs in 2003 to (www.goldenseeds.com) that does officers to assess a company’s ability to take on more debt. loan. found Proto Software Inc., knew all just that. Operating under its um- Edward Rogoff, academic director of the Lawrence N. In more uncertain economic times, some experts that. But he also knew that his soft- brella is a group of 55 angels based in Field Center for Entrepreneurship and Small Business at advise, many small business owners should think about ware program, which promised to New York and Boston.Their average Baruch College, foresees a credit drought that will peak scaling back their plans a bit. give Wall Street analysts the flexi- investment ranges from $300,000 to in a year or two. “Companies can open two new stores rather than bility to look at several data sets to- $500,000. Golden Seeds specializes “Conventional bank loans will be harder to get, and three,” says Robert DeMeola, managing partner of the gether in a more sophisticated way in early-stage companies in biotech- than a typical spreadsheet,had huge nology, software, media and con- when people do get them, they’ll be more expensive,” he Manhattan office of accounting firm J.H. Cohn. “You might commercial potential. sumer goods, especially those led by predicts. not get the home run you wanted, but there’s nothing Instead of making the rounds of women. The crunch is already beginning to hit the hundreds of wrong with a double.” local banks,Mr.Binkley began talk- New York small business owners who either put up their —STEVE GARMHAUSEN ing to so-called angels—investors VENTURE CAPITALISTS willing to pump seed money into early-stage companies.In many cas- Large sums come es, angels will focus on industries in with major strings Your Small Business in recent years, advertisements RightRight where where Your Small Business needsneeds us.us. have popped up in ever-odder places—from eggshells to the backs of pedicabs—but never where Bob Kantor envisioned them. His com- pany, Hanger Network, planned to put ads on its own eco-friendly pa- per clothes hangers, which it would distribute free to dry cleaners across the country. At least, that was the theory. First, Mr. Kantor needed capital to hire a full-time sales force and refine his hanger concept. Growing a business takes hard work – and a bank that works with you. “We knew it took money to make money,” says Mr. Kantor, a former North Fork Bank has the solutions Your Small Business needs to succeed: advertising executive. Nonetheless, BYRON BINKLEY I Loans, lines of credit, merchant processing and other banking services of Proto Software he went ahead and launched the I company in 2003, lining up produc- Checking, money market and savings accounts turned to angels I for funding and tion facilities and signing on adver- Cash management services – including an online cash management suite advice. tisers and dry cleaners. That I Equipment finance services groundwork yielded dividends three PARTNERS – NOT JUST BANKERS. years later, when Kodiak Venture BASICS Working with North Fork also gives you something more – the services of a North Fork banker who’s committed Partners agreed to invest $8 million to finding out where you want your business to go, and then developing a strategy for getting you there. in Hanger Network after six KEY ADVANTAGES Willing to months’worth of interviews that in- back startups that have little or cluded presentations on the busi- no revenue history. ness model and the introduction of DISADVANTAGES By surrender- key executives. ing a stake in the company, an “We invest in high growth busi- nesses that can generate large re- entrepreneur gives up sole con- Right where Your Small Business needs us. trol of the helm and cuts his turns,” says Chip Meakem, general potential gain later on. partner at Waltham, Mass.-based To learn more, speak to a North Fork Bank representative today. Kodiak. Stop by any North Fork Bank branch, WHERE TO FIND THEM The Angel What greatly helped sell Mr. Capital Association Web site at Meaken and his five partners on Mr. visit www.northforkbank.com or call 877-694-9111. www.angelcapitalassociation.org. Kantor’s company was the roster of Continued on Page 24

October 8, 2007 | Crain’s New York Business | 23 CNYB 10-08-07 A 24 10/4/2007 1:58 PM Page 1

REPORT SMALL BUSINESS

Continued from Page 23 turn virtually every closet in Amer- have been impressive. Revenues big-league advertisers, including ica into a mini-billboard. have increased tenfold in two years BASICS Phillips-Van Heusen, L’Oréal and To get his VC money and the and are now over $5 million. Typi- Staples, that had already signed on. hours of technical assistance that cally,VCs like Kodiak seek out fast- KEY ADVANTAGES Microloans are What also helped was research come with it,Mr.Kantor had to give growing firms that will either go tailor-made for small outfits that have showing there are 35,000 dry clean- up two board seats and a sizable mi- public or be bought out within three been rejected by banks. Loan rates ers nationwide that could be used to nority stake. The results, however, to five years, allowing the investors are low, typically 2 percentage points to cash in their chips. below prime. Borrowers don’t need BOB KANTOR BASICS to post collateral. secured an $8 MICROLENDERS million investment DISADVANTAGEs Microloans are for his ad company, KEY ADVANTAGES VCs monitor hold- just that—small—averaging around Hanger Network. ings intensely, work with owners to Credits based $25,000. Also, borrowers must quickly expand revenues. Help ranges on character sign a personal guarantee or find a from honing broad strategic plans to guarantor. solving specific problems and getting to many fledgling entrepreneurs, WHERE TO FIND THEM Small top dollar for the firm at sale time. microlenders sound almost too Business Administration, DISADVANTAGES As large-scale good to be true. Who else, after all, www.sba.gov; Acción New York, would ever dream of lending money investors, VCs usually demand own- SUZANNE BUTLER www.accionusa.org; Association for to business owners who lack every- ership stakes ranging from 10% to of Canada LLC Enterprise Opportunity, thing from written business plans to Gallery got a 50% and will require a corresponding $12,000 microloan. www.microenterpriseworks.org. number of board seats as well. Fre- tax filings to—in the case of street vendors—a fixed address? quently, they will want some say in Microlenders will do all of that. day-to-day operations, too. Most VCs “A lot of what we do is character- Seedco looks at “an entrepreneur’s are making a big push to attract make minimum investments of $3 based lending,”says Ken Brezenoff, idea, competence, energy, focus.” more small business customers.Un- million or more. vice president for community fi- Sometimes that approach like large commercial banks, which WHERE TO FIND THEM National Ven- nance for Seedco Financial Services amazes even the borrowers them- have to adhere to strict data-based ture Capital Association, Inc., a Manhattan-based microlen- selves, as it did Suzanne Butler, one standards, credit unions are more www.nvca.org. der. Instead of simply looking at of four founding partners of a Chi- likely to overlook troubled credit such data as credit scores, he says, natown art emporium called Cana- scores if the borrower and the busi- da LLC Gallery. ness have potential. “We operated on a small budget, In the end, Ms. Frenche, owner we all had second jobs, and we had of Le Chateau de Frenche Day Spa, no forecasts,” she says. “We are got the cash she needed from CORPORATE & INVESTMENT BANKING I ASSET MANAGEMENT I PRIVATE WEALTH MANAGEMENT artists—we didn’t even know what Brooklyn Cooperative Federal forecasts were.” Credit—a 3,000-member credit Nonethess, emboldened by the union with $4 million in assets. modest success of their two-year- old gallery, the partners summoned COMMENTS? [email protected] up the nerve to go to a microlender in 2004. Their boldness was re- warded with a $12,000, four-year loan from Seedco. The partners used the money to take their works on the road and exhibit at juried art shows, a departure that helped widen exposure and double rev- enues that year. In 2005, the gallery got an addi- Setting the stage tional $50,000 Seedco loan for an expansion and for working capital. for our clients’ success. This year, Ms. Butler reckons, rev- enues will hit $850,000—a fourfold increase over four years. “Our business has grown expo- nentially because we found a capital injection,” she says.

CREDIT UNIONS NIKIMA FRENCHE, owner of a day spa, went to a credit union Eager to lend, for assistance. but price is high BASICS after running a day spa in her Brooklyn home for two years, Niki- KEY ADVANTAGES Businesses ma Frenche was ready to move to are evaluated on their potential, permanent quarters. In 2006, she not on rigorous mathematical rented a street-level location on analysis of credit scores, revenue Tompkins Avenue in Bedford- growth, profitability, etc. Stuyvesant, but she needed capital to turn the space into a proper spa. DISADVANTAGES Interest rates There was just one hitch. from credit unions are below cred- “I knew I couldn’t go to a bank it card rates but well above those because my credit score was not for bank loans. Loans tend to be that good,” she says. Instead, she small, averaging $175,000, with turned to a credit union, which many for $75,000 or less. gave her a 12-year, $15,000 loan at WHERE TO FIND THEM National www.db.com 12% interest. “Credit unions are willing to sit Federation of Community and work with you, and they under- Development Credit Unions, stand why you’ve got debts,” she www.natfedr.org; National says. Credit Union Administration, Deutsche Bank Securities Inc., a subsidiary of Deutsche Bank AG, conducts investment banking and securities activities in the United States. Deutsche Bank Most credit unions are local, www.ncua.gov; Small Business Securities Inc., is a member of NYSE, NASD and SIPC. © 2007 Deutsche Bank AG. nonprofit institutions owned by Administration, www.sba.gov.

their depositors. A number of them by buckphotos ennis

24 | Crain’s New York Business | October 8, 2007 Project2 8/17/07 4:22 PM Page 1

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REPORT SMALL BUSINESS

HOW-TO

how much they cost in terms of support, returns Firing problem accounts or special treatment. Cre- ate a scorecard using values for things like gross sales have soured is unhealthy for busi- and referrals—even the ca- When prevention doesn’t work, here ness owners as well as employees. chet the client bestows— Stress saps everyone’s productivity, to help make assessments. are ways to dump troublesome clients clouds judgment and dampens cre- In many cases, it could ativity. Unfortunately, owners are be that an account needs a buck ennis nesses can’t focus on growth when typically too slow to jettison dead service or product that has IT’S OVER: Brad Hajart’s advertising firm recovered after BY TINA TRASTER they are bogged down with unrea- weight. become too expensive or letting go of the client that contributed 60% of its revenues. sonably demanding customers. Melanie McEvoy, owner of inconvenient to supply. ust 10 months after it Use these tips to determine when fundraising and event-planning opened in January 2006, Pie and how to cope with vexing clients. firm McEvoy & Associates, initial- TIP 4 that there is a need for real change. Advertising ran into trouble. ly had a terrific bond with a Wash- Look beyond the bottom line. The Manhattan agency’s No. TIP 1 ington-based political outfit keen to TIP 6 1 client, a premium-cigar Mate for life. identify New York contributors and even profitable clients may ex- End it well. J maker that contributed 60% sponsors. But things went into act an excessive toll on staff and re- of its revenues, was moving the best approach is not to get deep-freeze mode when the group’s sources. Some are obvious: chronic rehearse carefully. Rather than and reorganizing. stuck in the first place.Avoid pitfalls goals were not met quickly. complainers, liars and nickel-and- be confrontational, explain that ris- “We kept getting bounced with careful vetting. Don’t let des- “They stopped talking with us, dimers. But others creep up, de- ing costs make it impossible to meet around,” says Brad Hajart, Pie’s cre- peration for business overshadow even though they continued to pay a manding too many exceptions or the client’s specific needs at any- ative director and managing part- uneasiness about a prospect.During [large] fee,” Ms. McEvoy says. “I paying late.Trust is the cornerstone thing near agreed prices, or say that ner. “I couldn’t plan my calendar or the courting process,listen to expec- knew that I had to end [it], because of any good relationship. A repeat- the business is moving in a different assign account executives.” tations and need for things like cus- I would wake up every day and feel edly dishonest client has to go. direction. In the end, Mr. Hajart did the tomized work or fast turnarounds.If bad about my company.” Always suggest another provider only thing he could. He fired the an account doesn’t feel like a match, TIP 5 (and tell that firm to expect a call). client and put staffers to work on un- things are only likely to get worse TIP 3 Exhaust the possibilities. The client could actually end up be- derserved accounts. Revenues have down the road. Gauge the client’s true value. ing grateful for the tip and feel be- since rebounded to previous highs. before firing an account, make a holden to its former supplier. Re- Problem customers disrupt busi- TIP 2 problem customers generally cost last-ditch effort to rectify the prob- member: Lemonade is a delicious ness, frustrate staff and cost money. Get real. more than they bring in, but owners lems. Give the client specific guid- drink made with an inedible fruit. They drain a company’s energy and must be able to quantify any deficit. ance about how things can be im- create a stressful environment.Busi- maintaining associations that Keep track when customers pay and proved. Without threatening, stress COMMENTS? [email protected]

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26 | Crain’s New York Business | October 8, 2007 CNYB 10-08-07 A 27 10/4/2007 2:13 PM Page 1

REPORT HITS & MISSES Fledgling firms’ key moves by Lisa Goff

Supplement firm puts fizz in sales hen his plan to market a line of vitamins fell through, marketing executive Josh Taekman turned Wto his friend John McDonald to brainstorm new ideas. Oddly enough, Mr. McDonald found inspiration in the number of staffers calling in sick at several Manhattan restaurants he co-owns. In June, the partners launched E-Boost, an all-natural supplement that bolsters the immune system and fights fatigue. “There was nothing on the market that boosted both immunity and alertness,” Mr.Taekman says. Sales of the effervescent tablets—a pack of 10 retails for $11.50—hit $300,000 in just the first three months. Mr.Taekman projects first-year revenues of at least $1.2 million.The Manhattan company has three full-time employees.

HITS when they found themselves Daily regimen butting heads with their bosses, two marketing decisions have they made the leap and formed had a big impact. First, the partners Schiffman Creative. pitch E-Boost as a supplement to “You don’t have the courage [to be taken daily as a preventive, not as start your own business] for a long an occasional fix for a pesky cold or time,” Mr. Schiffman says. “Then hangover. Second, the product is you realize that by staying where sold not in drugstores or you are, you’re essentially failing in supermarkets but at upscale hotels your career.” like W and Mondrian, as well as a With a client list that includes few high-end spas. It can also be Disney and beauty industry veteran ordered online. Tina Hedges, the Schiffmans Another smart move:The appear to have escaped failure. company provides free samples to Undercharging to attract business hotel and spa staffers, who peddle limited their revenues to just the revitalizer with the zeal of the $70,000 in the first 12 months, but converted.“They’re all hooked on it,” Mr.Taekman says. MISSES Slow to Sparkle the partners wasted a year trying to develop the product with a pharmaceutical lab that CHILD’S PLAY: Schiffman Creative’s graphic projects include packaging for toys. didn’t listen to them. “We told them that it had to violently dissolve—to erupt in the the pair expect that figure to double glass—and they gave us a in their second year of operation. prototype that took three minutes,” That will allow them to hire their Mr. Taekman says. Another lab first employee. delivered the goods in six months. The partners also had to focus HITS their distribution more tightly, Perfect pitch targeting high-end outlets that ms. schiffman is a master of the cater specifically to singles. “We cold call. She found the name of the tried it at a family beach resort in creative director at Disney’s book San Diego, and it didn’t move,” Mr. division in a trade group’s online Taekman says. membership directory; one phone call later, she had a contract to design covers for a series of teen Crafting a business books. And after attending a Ladies of their own design Who Launch seminar, Ms. Schiffman e-mailed keynote rin and philip Schiffman speaker Ms. Hedges. had often talked about Her company, twist.new.brand. Estarting their own graphic venture, is now one of Schiffman design business, marrying his Creative’s biggest clients. graphic skills to her public relations “[Well-known] people like that expertise. In the summer of 2006, See COUPLE on Page 28

October 8, 2007 | Crain’s New York Business | 27 CNYB 10-08-07 A 28 10/4/2007 2:03 PM Page 1

REPORT SMALL BUSINESS

industry,” Mr. Schiffman says. But they quickly found that clients Couple craft own design firm hired based on experience. As a startup, he says, “it’s too easy to be random, but you have to focus on Continued from Page 27 development, and he oversees all ask a question, and you shouldn’t do your strengths to get clients.” are a lot more willing to meet with things graphic. Each must confine that to your spouse either.” The couple let accounting slide you than you may think,” Ms. comments about the other’s turf to for the first year. “Our books were a Schiffman says. “They’re always “humble opinions.”They also work MISSES mess,” Mr. Schiffman says.The looking for new talent.” in separate rooms and communi- Carried away by ideas business also racked up penalties Blogmeister At the beginning, the cate during the day via instant at first, the thrill of reshaping for late tax filings.Their new Schiffmans had equal say in messenger. their careers led the Schiffmans to accountant is digging them out, but makes it easy everything, which led to “It sounds odd, I know, for two pursue their interests, not their Mr. Schiffman has this advice for nthony casalena arguments, resentment and bad people working one room away expertise, which is in consumer other startups: “Hire an accountant, started blogging four decisions. “You need boundaries,” from each other,” Mr. Schiffman products and entertainment. first thing.” Ayears ago, while still in Ms. Schiffman says. She’s now in says. “But you don’t barge into your “I love cars, so I thought it college. Irked that he had to charge of PR and business boss’s office every five minutes to would be great to work for that COMMENTS? [email protected] use special software to add the blog and a photo gallery to his site, he decided to create a simple online platform that handled all three tasks. The result is Squarespace,a Web-hosting and blogging site that Mr. Casalena launched in 2004. It targets small business owners who see the marketing potential of blogging but don’t have big Web-design budgets or the programming chops to create and manage integrated sites. Businesses pay monthly rates of $25 to $75; individual accounts start at $7. Mr. Casalena, who says revenues were just under $2 million last year, also plans to add a shopping-cart feature to attract e-commerce outfits. HITS Praise worthy product squarespace’s crystal-clear instructions and crisp Web- page templates—and lack of reliance on advertising—have won wide praise accolades. “I want people to be able to start building their Web site immediately, without having to jump through a lot of hoops,” Mr. Casalena says. Using Google AdWords has paid off for the founder. “AdWords is a targeted, cost- effective way to reach Our custom-made business solutions bloggers,” Mr. Casalena says. MISSES leave other banks behind. Who needs free? Not every business challenge can be solved with the same approach. Imagine a bank that will he ignored most conven- treat your needs unlike any other bank would. Now imagine that same bank making those dreams tional wisdom about Web happen. At Banco Popular we are committed to the success of your business. With over 114 years publishing, but not the bit of banking experience we offer a wide variety of financing alternatives and experienced about having to offer a free professionals that will provide unique solutions for your particular banking needs: version of his product. When those with that option didn’t Lending options for commercial and Real Estate projects • Cash Management Services convert to paying customers, Depository Accounts • Insurance and payment processing Mr. Casalena dumped it. If you are looking for innovative solutions other banks may not offer, come to Banco Popular. “We refocused on who our Visit us or go to www.bancopopular.com for more information. users really were—bloggers who want a premium product, not something from the bargain bin,” he says. He is also phasing out his Call our Commercial Banking Specialists to find out about our services: 1-800-250-6968 Web development services, ©2007 Banco Popular North America. Member FDIC. Equal Housing Lender. which he offered large customers for a fee. “It’s hard to turn away $20,000 contracts,” Mr. Casalena says. “But with a small team, we need to focus all our energies.”

28 | Crain’s New York Business | October 8, 2007 Project1 10/5/07 2:59 PM Page 1 nb41p30_31cls.qxp 10/4/07 1:24 PM Page 30

BUSINESS MANAGEMENT HOUSEKEEPING SERVICES PUBLIC & LEGAL NOTICES Business Management Services Employees are Seeking Jobs as: Cash Management Services ● Bill Payment Housekeepers, Cleaners or Maids Notice of Formation of KAL Realty Partners Notice of Formation of Project Graphic Notice of Formation of Bridge Revitalization, Tax & Financial Services ● Financing Assistance They are Honest & Reliable. LLC. Arts. of Org. filed with Secy. of State Management LLC. Arts. of Org. filed with NY L.P. Cert. filed with NY Dept. of State on (212) 631-9500 ● www.mayercpa.com Serving all Boros of N.Y. (SSNY) on 8/14/07. Office location: Dept. of State on 7/19/07. Office location: NY 9/25/2007. Office location: NY County. Secy. NY County. SSNY designated as agent of LLC County. Secy. of State designated as agent of of State designated as agent of LP upon Call Home Helper upon whom process against it may be served. LLC upon whom process against it may be whom process against it may be served and SSNY shall mail process to principal business served and shall mail process to: McBreen & shall mail process to the principal business Cash Management & CFO Services (212) 768-9758 location: c/o Stuart Rich, Esq., Meister Seelig Kopko, 110 Summit Ave., Montvale, NJ address of the LP: 248 W. 108th St., NY, NY & Fein LLP, 140 E. 45th St., 19th Fl., NY, NY 07645. Purpose: any lawful activity. 10025, Attn: Bridge 202 Revitalization, Inc., BUSINESS SERVICES SECURITY 10017. Purpose: any lawful activity. registered agent upon whom process may be Notice of Qualification of Pinkerton Government served. Name/address of genl. ptr. available Jay Richards Security, Inc. Name of LLC: 1854 NOYACK PATH LLC. Services, LLC. Authority filed with Secy. of from Secy. of State. Term: until 12/31/2058. Arts. of Org. filed NY Dept. of State 5/9/07. State of NY (SSNY) on 8/2/07. Office location: Purpose: any lawful activity. Voted #1 Hands on Security County off. loc.: New York Cty. Sec. of State NY County. LLC formed in Delaware (DE) on Operation in NYC! designated as agent of LLC upon whom 6/30/89. SSNY designated as agent of LLC Notice of Qualification of Centurion Global Security Guards • Bldg Security process against it may be served. Sec. of upon whom process against it may be served. Partners, L.P. Authority filed with Secy. of Bonded & Insured • NYS Lic. State shall mail a copy of process to: 1854 SSNY shall mail process to: c/o National State of N.Y. (SSNY) on 8/30/07. Office Offices in NYC, Brooklyn & L.I. Noyack Path, Noyack, NY 11963. Purpose: Registered Agents, Inc., 875 Ave of the location: NY County. LP formed in Delaware any lawful activity. Americas, Ste 501, NY, NY 10001. Address (DE) on 8/22/07. SSNY designated as agent Call 718-858-1180 to be maintained in DE: 160 Greentree Dr., of LP upon whom process against it may be Notice of Formation of Oceangate Land Ste 101, Dover, DE 19904. Arts. of Org. served. SSNY shall mail process to principal VIDEO PRODUCTION Holdings L.P. Cert. filed with NY Dept. of State filed with DE Secy. Of State, 401 Federal business location: 101 Park Ave., NY, NY on 8/17/2007. Office location: NY County. St., Ste 4., Dover, DE 19901. Purpose: any 10178. DE address of LP: c/o Corporation Secy. of State designated as agent of LP upon lawful activities. Service Company, 2711 Centerville Road, Ste. whom process against it may be served and 400, Wilmington, DE 19808. Name/address shall mail process to the principal business Notice of Formation of 37-24 24th Street of each genl. ptr. available from SSNY. CM A Merchandise & address of the LP: c/o Starrett Corp., 70 E. Member LLC. Arts. of Org. filed with NY Dept. Cert. of LP filed with DE Secy. of State, 401 55th St., 7th Fl., NY, NY 10022, Attn: Stephen of State on 2/6/07. Office location: NY County. Federal St., Dover, DE 19901. Purpose: any Salup. Name/address of each genl. ptr. Secy. of State designated as agent of LLC lawful activity. Television Production Company available from Secy. of State. Term: until upon whom process against it may be served 12/31/2032. Purpose: any lawful activity. and shall mail process to: c/o Robert Kantor, Notice of Qualification of Enclave Capital Creating Concerts with sponsorship & combining Esq., 55 5th Ave., 15th Fl., NY, NY 10003, LLC. Authority filed with NY Dept. of State Notice of Formation of Scott Colee LLC, Art. principal business address of the LLC. on 7/6/2007. Office location: NY County. Television Production & recording on sight. of Org. filed Sec'y of State (SSNY) 7/17/07. Purpose: any lawful activity. LLC formed in Delaware (DE) on 5/31/1995. Office location: NY County. SSNY designated NY Secy. of State designated as agent of DVDs & Cds. as agent of LLC upon whom process against Notice of Formation of JS 180 Broadway LLC. LLC upon whom process against it may be it may be served. SSNY shall mail copy of Arts. of Org. filed with Secy. of State of N.Y. served and shall mail process to the principal process to c/o Golenbock Eiseman Assor Bell (SSNY) on 8/6/07. Office location: NY County. business address of the LLC: 708 3rd Ave., & Peskoe LLP, Attn: Lawrence R. Haut, 437 Principal business location: c/o Wharton NY, NY 10017. DE address of the LLC: 1209 347-242-7612 / [email protected] Madison Ave., NY, NY 10022-7302. Purpose: Realty, 20 E. 46th St., NY, NY 10004. SSNY Orange St., Wilmington, DE 19801. Arts. of any lawful activities. designated as agent of LLC upon whom Org. filed with DE Secy. of State, 401 Federal process against it may be served. SSNY shall St., Ste. 4, Dover, DE 19901. Purpose: any Notice of Qualification of Waldo’s $1 Mart, mail process to: Corporation Service Company, lawful activity. LLC. Authority filed with NY Dept. of State on 80 State St., Albany, NY 12207. Purpose: REAL ESTATE 8/30/07. Office location: NY County. Principal any lawful activity. Notice of Qualification of NY Credit Operating business address: 831 Pearl St., Boulder, CO Company LLC. Authority filed with Secy. of OFFICE SPACE 80302. LLC formed in Delaware (DE) on Notice of Qualification of BON ALLER NEW State of N.Y. (SSNY) on 8/8/07. Office location: 11/17/98. NY Secy. of State designated as YORK, LLC. Authority filed with Secy. of State NY County. Principal business location: 230 agent of LLC upon whom process against it of N.Y. (SSNY) on 8/20/07. Office location: NY Park Ave., Ste. 1160, NY, NY 10169. LLC IMMEDIATE OFFICE SPACE may be served and shall mail process to: c/o County. LLC formed in Delaware (DE) on formed in Delaware (DE) on 4/5/07. SSNY CT Corporation System, 111 8th Ave., NY, NY 7/30/07. SSNY designated as agent of LLC designated as agent of LLC upon whom Space by the day, week, month, year and even virtual. 10011, registered agent upon whom process upon whom process against it may be served. process against it may be served. SSNY shall may be served. DE address of LLC: 1209 SSNY shall mail process to: c/o Corporation mail process to: c/o Corporation Service 212.573.0909 Orange St., Wilmington, DE 19801. Arts. of Service Company, 80 State St., Albany, NY Company (CSC), 80 State St., Albany, NY VornadoFurnishedOffices.com Org. filed with DE Secy. of State, P.O. Box 898, 12207. DE address of LLC: c/o CSC, 2711 A 12207. DE address of LLC: 2711 Centerville Dover, DE 19901. Purpose: any lawful activity. Road, Ste. 400, Wilmington, DE. Arts. of Centerville Road, Ste. 400, Wilmington, DE 90 Park 909 Third 330 Madison 770 Broadway COMPANY Org. filed with DE Secy. of State, Federal & 19808. Arts. of Org. filed with DE Secy. of Notice of Formation of AIKIDO KOKIKAI Duke of York St., Dover, DE 19901. Purpose: State, 401 Federal St., Ste. 4, Dover, DE 19901. OFFICE SPACE OF NYC, LLC, a domestic Limited Liability any lawful activity. Purpose: any lawful activity. LUXURY Company. Arts. of Org. filed with the SSNY on 07/23/07. Office location: New York Notice of Qualification of QSG Management, Notice of Qualification of Clutch Group LLC. Authority filed with Secy. of State of N.Y. 212-947-5500 County. SSNY has been designated as L.L.C. Authority filed with Secy. of State of PROPERTIES agent upon whom process against the LLC N.Y. (SSNY) on 7/13/07. Office location: NY (SSNY) on 9/5/07. Fictitious name in NY State: FOR ALL OFFICE, RETAIL & LOFT SPACES may be served. SSNY shall mail a copy of County. Principal business location: 11th Fl., Clutch Group Acquisition Company LLC. New York City, Brooklyn, Queens Great Neck Coop – 2 bdrm, 2 full baths, process to: The LLC, One Penn Plaza - 350 Park Ave., NY, NY 10022. LLC formed in Office location: NY County. LLC formed in 500–50,000 SF terrace, South East exposure, Completely Suite 2410, New York, NY 10119. Purpose: Delaware (DE) on 7/31/07. SSNY designated UNDER MARKET SUBLETS – NO FEE! Delaware (DE) on 3/13/07. SSNY designated renov. Near Temples, Churches, shopping, Any Lawful Purpose. as agent of LLC upon whom process against as agent of LLC upon whom process against Search our listings @ www.midcomre.com it may be served. SSNY shall mail process Call Paul 212 947-5500 x 100 library, LIRR. 30 mins to the city. $679K it may be served. SSNY shall mail process to: Name of LLC: Safari Global Consulting LLC. Corporation Service Co., 80 State St., Albany, to principal business location: c/o The LLC, Owner 516-356-8617 370 Lexington Ave., Ste. 1410, NY, NY 10017. PROFESSIONAL SPACE Arts. of Org. filed NY Dept. of State 8/7/07. NY 12207, registered agent upon whom County off. loc.: New York Cty. Sec. of State process may be served. DE address of LLC: DE address of LLC: c/o United Corporate 141 East 55th Street, N.Y.C. To place your classified designated as agent of LLC upon whom 2711 Centerville Rd., Ste. 400, Wilmington, Services, Inc., 874 Walker Road, Ste. C, Dover, DE 19904. Arts. of Org. filed with Reasonable small business/professional/ ad call John Gallagher process against it may be served. Sec. of State DE 19808. Arts. of Org. filed with DE Secy. shall mail a copy of process to Brian Fortune, of State, Townsend Bldg., Dover, DE 19901. DE Secy. of State, Townsend Bldg., Dover, therapist space available. Approx. 12 x 20 DE 19901. Purpose: any lawful activity. 212-355-5136 @ 212-210-0189 c/o Hunter Global Investors L.P., 485 Madison Purpose: any lawful activity. Ave., 22nd Fl., NY, NY 10022. Purpose: any lawful activity. Notice of Qualification of BR 1355 First Avenue, VENICE II LLC. Arts. of Org. filed with the LLC, App. for Auth. filed Sec'y of State (SSNY) SOS of NY (SSNY) on 7/23/07. Office loc.: 6/29/07. Office location: NY County. LLC org. Notice of Conversion of Cooperative Equities NY County. SSNY designated as agent of PUBLIC & LEGAL NOTICES Group IV, a partnership, to Cooperative in DE 3/29/07. SSNY designated as agent of LLC upon whom process against it may be LLC upon whom process against it may be Equities IV LLC. Cert. filed with Secy. of State served. SSNY shall mail process to: Irving of NY (SSNY) on 10/22/02. Office location: NY served. SSNY shall mail copy of process to EMERALD GREENE, LLC App. for Auth. filed Notice of Qualification of Haven Avenue J. Gotbaum, 568 Broadway, Suite 505, New c/o Nat. Reg. Agents, 875 Ave of the Americas, NY Sec. of State (SSNY) 8/12/05, doing Owner LLC. Authority filed with Secy. of State County. SSNY designated as agent of LLC York, NY 10012. Purpose: any lawful activity. upon whom process against it may be served Ste. 501, NY, NY 10001. DE office addr.: 2711 business under the fictitious name EMERALD of N.Y. (SSNY) on 6/18/07. Office location: Centerville Rd., Wilmington, DE 19808. Cert. GREEN NYC. LLC was organized in DE on NY County. Principal business location: c/o and shall mail process to: Philip Brody, c/o Notice of Formation of Stawski Group, LLC, Time Equities, Inc., 55 5th Ave., 15th Fl., of Form. on file: SSDE, Townsend Bldg., Dover, 7/29/05.Office in NY Co. SSNY desig. as agent Vantage Properties, LLC, 750 Lexington Ave., Art. of Org. filed Sec'y of State (SSNY) DE 19901. Purpose: any lawful activities. of LLC upon whom process may be served. NY, NY 10022. LLC formed in Delaware (DE) NY, NY 10003, registered agent upon 7/12/07. Office location: NY County. SSNY SSNY to mail copy of process to c/o DCD on 3/19/07. SSNY designated as agent of LLC whom process may be served. Purpose: designated as agent of LLC upon whom any lawful activity. Notice of Formation of The 157 East 72nd Capital, 57 W. 38th St., NY, NY 10018, which upon whom process against it may be served. process against it may be served. SSNY Street L.L.C. Arts. of Org. filed with NY is the principal NY office. Cert. of Org. filed SSNY shall mail process to: c/o Corporation shall mail copy of process to c/o Hofheimer Notice of Formation of Dorian May LLC. Arts. Dept. of State on 9/20/07. Office location: with SSDE, Div. of Corps. 401 Federal St., Ste. Service Company, 80 State St., Albany, NY Gartlir & Gross LLP, 530 Fifth Ave., NY, NY of Org. filed with Secy. of State of N.Y. (SSNY) NY County. Secy. of State designated as #4, Dover, DE. Purpose: Any lawful purpose. 12207. DE address of LLC: The Corporation 10036. Purpose: any lawful activities. Latest on 8/21/07. Office location: NY County. SSNY agent of LLC upon whom process against it Trust Company, 1209 Orange St., Wilmington, date 12/31/2057. designated as agent of LLC upon whom may be served and shall mail process to: 201 DE 19808. Arts. of Org. filed with DE Secy. of Notice of Qualification of Turtle Creek process against it may be served. SSNY shall E. 79th St., Apt. 20E, NY, NY 10075, principal State, 401 Federal St., Dover, DE 19901. Investment Advisors, LLC. Authority filed mail process to principal business location: Notice of Qualification of Dollar Land business address of the LLC. Purpose: any Purpose: any lawful activity. with Secy. of State of NY (SSNY) on 7/24/07. c/o Dorian May, 160 E. 65th St., NY, NY Associates LLC. Authority filed with NY Dept. lawful activity. Office location: NY County. LLC formed in 10021. Purpose: any lawful activity. of State on 5/18/07. Office location: NY County. Delaware (DE) on 3/23/07. SSNY designated NOTICE OF FORMATION OF Cocktail Caterers LLC formed in Delaware (DE) on 4/30/07. NY Notice of Formation of a Limited Liability as agent of LLC upon whom process against LLC. Arts. of Org. filed with the Secy. of State Name of LLC: ELISABETH HAHN LLC. Arts. of Secy. of State designated as agent of LLC Partnership known as Brosius Trask LLP; it may be served. SSNY shall mail process of NY (SSNY) on 6/8/2007 Office location Org. filed NY Dept. of State 8/15/07. County upon whom process against it may be served Articles of Incorporation filed with the to: Kirkpatrick & Lockhart et al, Attn: Holly D. NEW YORK County. SSNY has been designated off. loc.: New York Cty. Principal bus loc.: 76 and shall mail process to: c/o CT Corporation Secretary of State of New York on 6/13/07; Hatfield, Esq, 599 Lexington Ave., NY, NY as agent upon whom process against it may W. 86th St., #3D, NY, NY 10024. Sec. of State System, 111 8th Ave., NY, NY 10011, Office location: New York County; SSNY has 10022-6030 . Address of principal office: 301 be served. SSNY shall mail process to: 875 designated as agent of LLC upon whom registered agent upon whom process may be been designated as agent of the LLP upon East 75th St., Ste 16E, NY, NY 10021. Arts. of Avenue of the Americas, Suite 501. New York, process against it may be served. Sec. of State served. DE address of LLC: 1209 Orange St., whom process against it may be served. Org. filed with DE Secy. Of State, 401 Federal NY 10001. Principal business Location: 416 shall mail a copy of process to c/o Elisabeth Wilmington, DE 19801. Arts. of Org. filed with SSNY shall may a copy of process to Brosius St., Ste 4., Dover, DE 19901. Purpose: any West 23rd Street, 4B , NY, NY 10011. Purpose: Hahn, 76 W. 86th St., #3D, NY, NY 10024. DE Secy. of State, Townsend Bldg., Dover, DE Trask LLP, 420 Lexington Avenue, Suite 2800, lawful activities. any lawful act. 891443 Purpose: any lawful activity. 19901. Purpose: any lawful activity. New York 11021-2808; Purpose: Law Firm.

30 | Crain’s New York Business | October 8, 2007 nb41p30_31cls.qxp 10/4/07 1:48 PM Page 31

PUBLIC & LEGAL NOTICES

Agent of Change LLC. Articles of Organization Notice of Qualification of Invus Advisors, Notice of Formation of NY GO 72nd LLC. Arts. Notice of Qualification of Dynamis ETF, LLC. Notice of Qualification of JWS Partners I, filed with New York Department of State on L.L.C. Authority filed with NY Dept. of State on of Org. filed with Secy. of State of N.Y. (SSNY) Authority filed with Secy. of State of N.Y. L.P. Authority filed with Secy. of State of NY July 31, 2007. Office Location: New York 8/23/07. Office location: NY County. Principal on 6/1/07. Office location: NY County. SSNY (SSNY) on 8/22/07. Office location: NY (SSNY) on 09/11/07. Office location: New County. Secretary of State designated as business address: 750 Lexington Ave., NY, NY designated as agent of LLC upon whom County. LLC formed in Delaware (DE) on York County. LP formed in Delaware (DE) agent of LLC upon who process against it 10022. LLC formed in Delaware (DE) on process against it may be served. SSNY shall 7/25/07. SSNY designated as agent of LLC on 09/07/07. SSNY designated as agent of may be served and shall mail process to 3/13/03. NY Secy. of State designated as agent mail process to: c/o Gotham Organization, upon whom process against it may be served. LP upon whom process against it may be Agent of Change LLC, One River Place, of LLC upon whom process against it may be 1010 Ave. of the Americas, 4th Fl., NY, NY SSNY shall mail process to principal business served. SSNY shall mail process to: c/o Suite 3122, NY, NY 10036. Purpose: Any served and shall mail process to: c/o CT 10018. Purpose: any lawful activity. location: 75 Rockefeller Plaza, 18th Fl., NY, NY Northeast Securities, 100 Wall St., NY, NY lawful activity. Corporation System, 111 8th Ave., NY, NY 10019. DE address of LLC: c/o Corporation 10005, Attn: Jon W. Salmanson. Address 10011, registered agent upon whom process Notice of Qualification of Betsey Johnson Service Co., 2711 Centerville Rd., Ste. 400, required to be maintained in home jurisdiction: NOTICE OF FORMATION OF LIMITED LIABILITY may be served. DE address of LLC: 1209 LLC. Authority filed with Secy. of State of Wilmington, DE 19808. Cert. of Form. filed 160 Greentree Dr., Ste., 101, Dover, DE COMPANY. NAME: BLOGGERMED LLC. Orange St., Wilmington, DE 19801. Arts. of NY (SSNY) on 8/1/07. Office location: NY with DE Secy. of State, Townsend Bldg., Dover, 19904. Name/address of genl. ptr. available Articles of Organization were filed with the Org. filed with DE Secy. of State, 401 Federal County. LLC formed in Delaware (DE) on DE 19901. Purpose: any lawful activity. from SSNY. Cert. of LP filed with DE Secy. Secretary of State of New York (SSNY) on St., Ste. 4, Dover, DE 19901. Purpose: any 6/29/07. SSNY designated as agent of LLC of State, John G. Townsend Bldg., 401 Federal 08/15/07. Office location: New York County. lawful activity. upon whom process against it may be VERDE ENVO LLC Articles of Org. filed NY St., Ste. 4, Dover, DE 19901. Purpose: any SSNY has been designated as agent of the Sec. of State (SSNY) 5/31/07. Off. in lawful activities. LLC upon whom process against it may be Notice of Qualification of Dry Brook Credit served. SSNY shall mail process to: c/o Westchester Co. SSNY desig. agent ot LLC served. SSNY shall mail a copy of process Opportunities, LP, App. for Auth. filed Sec'y National Registered Agents, Inc., 875 Ave upon whom process may be served. SSNY Notice of Formation Vvensta LLC art. of org. to the LLC, c/o Peter Juhng, 7 Dogwood of State (SSNY) 6/25/07. Office location: of the Americas, Ste 501, NY, NY 10001. shall mail copy of process to the principal filed Secy. of State NY (SSNY) 6/14/07. Off. Lane, Tenafly, New Jersey 07670. Purpose: NY County. LP org. in DE 2/26/07. SSNY Address to be maintained in DE: 2711 address of the LLC: 24 Midland Ave, Yonkers, loc. in NY Co. SSNY designated as agent of For any lawful purpose. designated as agent of LP upon whom Centerville Rd., Ste 400, Wilmington, DE NY 10705. Purpose: Any lawful activity. LLC upon whom process may be served. process against it may be served. SSNY 19808. Arts. of Org. filed with DE Secy. Of SSNY shall mail copy of process to: Hang Notice of Qualification of Crestview Partners shall mail copy of process to Attn: Tanya State, 401 Federal St., Ste 4., Dover, DE Notice of Qualification of HY 707 LLC. Guo, 51-29 72 St, Woodside, NY 11377. TE (Outbound), L.P. Authority filed with NY Pulver, 400 Madison Ave., Ste. 5D, NY, NY 19901 Purpose: any lawful activities. Authority filed with Secy. of State of N.Y. Purpose: Any lawful purpose. Dept. of State on 7/31/07. Office location: 10017. DE office addr.: c/o CSC, 2711 (SSNY) on 9/11/07. Office location: NY NY County. LP formed in Cayman Islands Centerville Rd., Wilmington, DE 19808. Cert. Notice of Qualification of BRS Coinvestor County. LLC formed in Delaware (DE) on Notice of Qualification of 655 FIFTH OWNER (CI) on 10/24/06. NY Secy. of State designated of LP on file: SSDE, Townsend Bldg., Dover, GP III, L.L.C. Authority filed with Secy. of 6/20/07. SSNY designated as agent of LLC. Authority filed with Secy. of State of N.Y. as agent of LP upon whom process against DE 19901. Name/addr. of each gen. ptr. avail. (SSNY) on 8/29/07. Office location: NY it may be served and shall mail process to at SSNY. Purpose: any lawful activities. State of NY (SSNY) on 9/6/07. Office loca- LLC upon whom process against it may County. LLC formed in Delaware (DE) on the principal business address of the LP: tion: NY County. LLC formed in Delaware be served. SSNY shall mail process to: 8/27/07. SSNY designated as agent of LLC 667 Madison Ave., 10th Fl., NY, NY 10021. Notice of Qualification of Hawkshaw Capital (DE) on 8/29/07. SSNY designated as c/o KMM Telecommunications, 9 Law upon whom process against it may be served. CI address of LP: c/o M&C Corporate Partners, LP, App. for Auth. filed Sec'y of State agent of LLC upon whom process against Drive, Ste. 13, Fairfield, NJ 07004. DE SSNY shall mail process to: c/o Hiro Real Services Ltd., P.O. Box 309GT, Ugland (SSNY) 2/7/03. Office location: NY County. LP it may be served. SSNY shall mail process address of LLC: Trolley Square, Ste. 20C, Estate Company, 650 Madison Ave., NY, NY House, S. Church St., George Town, Grand org. in DE 2/6/03. SSNY designated as agent 10022, Attn: Frank Ward. DE address of LLC: Cayman, CI. Name/address of genl. ptr. of LP upon whom process against it may be to: The LLC, 126 East 56th St., NY, NY Wilmington, DE 19806. Arts. of Org. filed c/o Corporation Service Company, 2711 available from SSNY. Cert. of LP filed with served. SSNY shall mail copy of process to 10022. Address to be maintained in DE: with DE Secy. of State, 401 Federal St., Centerville Road, Ste. 400, Wilmington, DE Registrar of Exempted LPs, Citrus Grove Attn: Frank Byrd, 400 Madison Ave., NY, NY 2711 Centerville Rd., Ste 400, Wilmington, Ste. 4, Dover, DE 19901. Purpose: own & 19808. Cert. of Form. filed with DE Secy. Bldg., George Town, Grand Cayman, CI. 10017. DE office addr.: c/o CSC, 2711 DE 19808. Arts. of Org. filed with DE Secy. develop real property. of State, 401 Federal St., Ste. 4, Dover, DE Purpose: any lawful activity. Centerville Rd., Wilmington, DE 19808. Cert. Of State, 401 Federal St., Ste 4., Dover, DE 19901. Purpose: any lawful activity. of LP on file: SSDE, Townsend Bldg., Dover, Notice of Formation of Axelrod Energy Notice of Qualification of Rex Uniondale Hotel DE 19901. Name/addr. of each gen. ptr. avail. 19901 . Purpose: any lawful activities. LLC. Authority filed with Secy. of State of N.Y. Projects, LLC, Art. of Org. filed Sec'y of State Name of LLC: Uphook filed Ny. dept of state at SSNY. Purpose: any lawful activities. 05/31/07. County of New York sec. of state (SSNY) on 1/18/07. Office location: NY NOTICE OF FORMATION OF LIMITED LIABILITY (SSNY) 6/22/07. Office location: NY County. designated agent of LLC Upon whom process County. LLC formed in Delaware (DE) on COMPANY. NAME: 203 E. 45th MANAGEMENT SSNY designated as agent of LLC upon whom Notice of Qualification of VII West 75th Street against it may be served, secretary of state 1/2/07. SSNY designated as agent of LLC LLC. Articles of Organization were filed with process against it may be served. SSNY shall Owner, LLC, App. for Auth. filed Sec'y of State Shall mail copy of process to Ice: aka Gayle upon whom process against it may be served. the Secretary of State of New York (SSNY) on mail copy of process to c/o Lawrence Axelrod, (SSNY) 7/26/07. Office location: NY County. Johnson 130 Jane St. New York 10014. SSNY shall mail process to: 625 Reckson 08/31/07. The latest date of dissolution is 214 West 96th St., NY, NY 10025. Purpose: LLC org. in DE 7/3/07. SSNY designated as any lawful activities. Purpose: any lawful activity. Plaza, Uniondale, NY 11556. DE address of agent of LLC upon whom process against it 12/31/2099. Office location: New York County. LLC: 1209 Orange St., Wilmington, DE 19801. SSNY has been designated as agent of the may be served. SSNY shall mail copy of Notice of Qualification of PowerQX LLC. Notice of Qualification of SG Mortgage Cert. of Form. filed with DE Secy. of State, LLC upon whom process against it may be process to c/o Nat. Reg. Agents, 875 Ave of Authority filed with NY Dept. of State on Securities, LLC. Authority filed with Secy. of P.O. Box 898, Dover, DE 19903. Purpose: any served. SSNY shall mail a copy of process to the Americas, Ste. 501, NY, NY 10001, the 11/8/06. Office location: NY County. Principal State of N.Y. (SSNY) on 6/6/07. Office lawful activity. the LLC, 121 West 45th Street, New York, New Reg. Agt. upon whom proc. may be served. business address: 375 Park Ave., NY, NY location: NY County. LLC formed in Delaware York 10036. Purpose: For any lawful purpose. Notice of Formation of Sunshine Entertainment DE office addr.: 160 Greentree Dr., Ste. 101, 10152. LLC formed in Delaware (DE) on (DE) on 5/17/05. SSNY designated as agent Group (NY), LLC. Arts. of Org. filed with Secy. Dover, DE 19904. Cert. of Form. on file: Notice of Formation of CHASE MARLEY LLC, 10/26/04. NY Secy. of State designated as of LLC upon whom process against it may be of State of N.Y. (SSNY) on 6/1/07. Office SSDE, Townsend Bldg., Dover, DE 19901. Art. of Org. filed with Sec'y of State of NY agent of LLC upon whom process against it served. SSNY shall mail process to: c/o CT location: NY County. SSNY designated as Purpose: any lawful activities. (SSNY) 07-20-07. Office Location: NY may be served and shall mail process to: c/o Corporation System, 111 8th Ave., NY, NY agent of LLC upon whom process against it County. SSNY designated as agent of LLC CT Corporation System, 111 8th Ave., NY, NY 10011, registered agent upon whom process may be served. SSNY shall mail process to: Notice of Qualification of 2500/2700 upon whom process against it may be served. 10011, registered agent upon whom process may be served. DE address of LLC: 1209 c/o Bruce Lipnick, 800 Third Avenue, NY, NY Westchester Avenue SPE LLC. Authority filed SSNY shall mail copy of process to c/o The may be served. DE address of LLC: c/o The Orange St., Wilmington, DE 19801. Arts. 10022. Purpose: any lawful activity. with Secy. of State of N.Y. (SSNY) on 1/18/07. LLC, 315 E. 65th St., Ste. 1B, NY NY 10065. Corporation Trust Co., 1209 Orange St., of Org. filed with DE Secy. of State, 401 Office location: NY County. LLC formed in Purpose: any lawful activities. Wilmington, DE 19801. Cert. of Form. filed Federal St., Dover, DE 19901. Purpose: all Notice of Formation of NR-OT HAND REHAB Delaware (DE) on 12/20/06. SSNY designated with DE Secy. of State, Townsend Bldg., lawful purposes. PLLC, a Professional Limited Liability as agent of LLC upon whom process against Notice of Formation of ALBERT 2 LLC. Arts. Dover, DE 19901. Purpose: any lawful activity. Company. Arts. of Org. filed with the SSNY on it may be served. SSNY shall mail process to: of Org. filed with NY Dept. of State on 9/5/07. Notice of Qualification of GS Capital 625 Reckson Plaza, Uniondale, NY 11556. DE 06/26/07. Office location: New York County. Office location: NY County. Secy. of State Notice of Formation of 180 BROADWAY Partners 2000 Employee Fund, L.P. address of LLC: 1209 Orange St., Wilmington, SSNY has been designated as agent upon designated as agent of LLC upon whom LLC. Arts. of Org. filed with Secy. of State of Authority filed with Secy. of State of N.Y. whom process against it may be served. DE 19801. Cert. of Form. filed with DE Secy. process against it may be served and shall N.Y. (SSNY) on 6/15/07. Office location: NY of State, P.O. Box 898, Dover, DE 19903. (SSNY) on 7/27/07. Office location: NY SSNY shall mail a copy of process to: C/O the mail process to the principal business County. SSNY designated as agent of LLC Purpose: any lawful activity. County. LP formed in Delaware (DE) on PLLC, 61-18 190th Street, Suite 201, Fresh address of the LLC: c/o United American upon whom process against it may be Meadows, NY 11365. Purpose: To Practice Land, LLC, 430 W. Broadway, 3rd Fl., NY, NY 4/5/00. SSNY designated as agent of LP NOTICE OF FORMATION OF BMDB Enterprise served. SSNY shall mail process to: c/o The Profession Of Occupational Therapy. 10012. Purpose: any lawful activity. LLC. Article of Organization filed with the Eastern Property Associates, LLC, 194 W. upon whom process against it may be Secretary of State of NY (SSNY) on 5/8/07 served. SSNY shall mail process to: 85 Notice of Formation of Paul Devlin Productions, Notice of Formation of JASON 2 LLC. Arts. of 10th St., L-1, NY, NY 10014, Attn: Joseph LLC. Arts. of Org. filed with Secy. of State Office location NEW YORK County. SSNY Edery. Purpose: any lawful activity. Broad St., NY, NY 10004. DE address of has been designated as agent upon whom Org. filed with NY Dept. of State on 9/6/07. of N.Y. (SSNY) on 8/13/07. Office location: Office location: NY County. Secy. of State LP: Corporation Trust Center, 1209 Orange NY County. SSNY designated as agent of process against it may be served. The Post St., Wilmington, DE 19801. Name/address Office address to which the SSNY shall mail designated as agent of LLC upon whom Notice of Formation of Integrated Technology LLC upon whom process against it may be process against it may be served and shall Systems NYC LLC. Authority filed with New of each genl. ptr. available from SSNY. served. SSNY shall mail process to: c/o a copy of any process against the LLC served upon him/her is C/O the LLC 585 Leonard St mail process to the principal business address York Dept. of State 1/10/06. Office location: Cert. of LP filed with DE Sec. of State, P.O. Cowan, DeBaets, Abrahams & Sheppard of the LLC: c/o United American Land, LLC, New York County. LLC formed in Delaware LLP, Attn: Robert I. Freedman, 41 Madison #3. Brooklyn, NY 11222. Date of Dissolution: Box 898, Dover, DE 19903. Purpose: any Purpose of LLC: to engage in any lawful act 430 W. Broadway, 3rd Fl., NY, NY 10012. (DE) on 12/21/05. Sec. of State designated Ave., 34th Fl., NY, NY 10010. Purpose: any Purpose: any lawful activity. as agent of LLC upon whom process against lawful activity. lawful activity. or activity. Street address of Principal Business location is: 585 Leonard St #3. it may be served. Sec. of State shall mail process to: 509 Madison Ave. Suite 1200, NY, Notice of Formation of Rising Development – Notice of Qualification of Perella Weinberg Brooklyn, NY 11222 Notice of Qualification of Blackstone TT Fund NY 10022. DE address of LLC: 3500 South 38 Main, LLC. Arts. of Org. filed with Secy. Partners Capital Management LP. Authority L.P., App. for Auth. filed Sec'y of State (SSNY) DuPont Highway, Dover, DE 19901. Cert. of of State of N.Y. (SSNY) on 9/6/07. Office filed with NY Dept. of State on 6/19/07. Office EPOLOGY LLC, a foreign Limited Liability 5/24/07. Office location: NY County. LP org. in Formation filed with DE Sec. of State, P.O. location: NY County. SSNY designated as location: NY County. LP formed in Delaware Company (LLC) filed with the Sec of State of DE 5/21/07. SSNY designated as agent of LP Box 898, Dover, DE 19903. Purpose: Any agent of LLC upon whom process against it (DE) on 2/28/07. NY Secy. of State designated NY (SSNY) on 5/04/07. NY office Location: upon whom process against it may be served. lawful activity. may be served. SSNY shall mail process to: as agent of LP upon whom process against it NEW YORK County. SSNY is designated as SSNY shall mail copy of process to Attn: J. agent upon whom process against the LLC Tomilson Hill, 345 Park Ave., NY, NY 10154. The LLC, 3261 Broadway, NY, NY 10027. may be served and shall mail process to: 767 Purpose: any lawful activity. 5th Ave., NY, NY 10153, principal business may be served. SSNY shall mail a copy of any DE office addr.: c/o CSC, 2711 Centerville Rd., Notice of Formation of 142 Wooster Street process against the LLC served upon him/her Wilmington, DE 19808. Cert. of LP on file: LLC, Art. of Org. filed Sec'y of State (SSNY) address of the LP. DE address of LP: c/o Notice of Qualification of R-Roof IV, LLC. to THE LLC, 261 BROOME ST., APT. 3A, NEW SSDE, Townsend Bldg., Dover, DE 19901. 7/19/07. Office location: NY County. SSNY National Corporate Research, Ltd., 615 S. Authority filed with Secy. of State of N.Y. DuPont Hwy., Dover, DE 19901. Name/address YORK, NY 10002. General purposes. Name/addr. of each gen. ptr. avail. at SSNY. designated as agent of LLC upon whom Purpose: any lawful activities. process against it may be served. SSNY shall (SSNY) on 8/2/07. Office location: NY County. of genl. ptr. available from NY Secy. of State. Principal business location: 5847 San Felipe, Cert. of LP filed with DE Secy. of State, 401 Notice of Qualification of Roundtable mail copy of process to c/o Nat. Reg. Agents, Managers LLC. Authority filed with Secy. of Notice of Qualification of GII Fund L.P., App. 875 Ave of the Americas, Ste. 501, NY, NY Ste. 4650, Houston, TX 77057. LLC formed in Federal St., Dover, DE 19901. Purpose: any Delaware (DE) on 6/11/07. SSNY designated lawful activity. State of N.Y. (SSNY) on 6/28/07. Office for Auth. filed Sec'y of State (SSNY) 6/13/07. 10001, the Reg. Agt. upon whom proc. may location: NY County. LLC formed in Delaware Office location: NY County. LP org. in DE be served. Purpose: any lawful activities. as agent of LLC upon whom process against Notice of Formation of Kusa Makura LLC. Arts. (DE) on 9/15/06. SSNY designated as agent 6/11/07. SSNY designated as agent of LP it may be served. SSNY shall mail process to: of Org. filed with Secy. of State of N.Y. (SSNY) of LLC upon whom process against it may be upon whom process against it may be served. Notice of Formation of Paramount Fee Mezz, c/o Corporation Service Company, 80 State on 8/8/07. Office location: NY County. SSNY served. SSNY shall mail process to: 280 Park SSNY shall mail copy of process to Attn: J. LLC, Art. of Org. filed Sec'y of State (SSNY) St., Albany, NY 12207. DE address of LLC: designated as agent of LLC upon whom Avenue, NY, NY 10017. DE address of LLC: Tomilson Hill, 345 Park Ave., NY, NY 10154. 8/21/07. Office location: NY County. SSNY 2711 Centerville Road, Ste. 400, Wilmington, process against it may be served. SSNY shall 2711 Centerville Rd., Ste. 400, Wilmington, DE office addr.: c/o CSC, 2711 Centerville Rd., designated as agent of LLC upon whom DE 19808. Arts. of Org. filed with DE Secy. of mail process to principal business location: DE 19808. Cert. of Form. filed with DE Secy. Wilmington, DE 19808. Cert. of LP on file: process against it may be served. SSNY shall State, 401 Federal St., Ste. 4, Dover, DE c/o The LLC, 224 E. 12th St., NY, NY 10003. of State, P.O. Box 898, Dover, DE 19903. SSDE, Townsend Bldg., Dover, DE 19901. mail copy of process to Nat. Reg. Agents, 875 19901. Purpose: any lawful activity. Purpose: any lawful activity. Purpose: any lawful activity. Name/addr. of each gen. ptr. avail. at SSNY. Ave of the Americas, Ste. 501, NY, NY 10001. Purpose: any lawful activities. Purpose: any lawful activities. Notice of Formation of Triad Boys II, LLC. Arts. Notice of Formation of T-Parc LLC. Arts. of Advertise on of Org. filed with Secy. of State of N.Y. (SSNY) Org. filed with Secy. of State of N.Y. (SSNY) Notice of Formation of NewQuest Manager Notice of Formation of EIC HOSPITALITY on 9/17/07. Office location: NY County. SSNY on 7/30/07. Office location: NY County. SSNY LLC. Arts. of Org. filed with Secy. of State CONCEPTS LLC. Arts. of Org. filed with Secy. www.newyorkbusiness.com designated as agent of LLC upon whom designated as agent of LLC upon whom of N.Y. (SSNY) on 8/31/07. Office location: of State of N.Y. (SSNY) on 9/17/07. Office process against it may be served. SSNY shall process against it may be served. SSNY shall NY County. SSNY designated as agent of location: NY County. SSNY designated as mail process to principal business location: mail process to principal business location: LLC upon whom process against it may be agent of LLC upon whom process against it Call John Gallagher c/o United American Land, LLC, 430 West David B. Gardner, Esq., c/o Kline, Gardner & served. SSNY shall mail process to: c/o The may be served. SSNY shall mail process to: Broadway, NY, NY 10012. Purpose: any O’Connor, P.C., 96 Middle St., Gloucester, MA LLC, 275 Madison Ave., Ste. 702, NY, NY 145 E. 84th St., #2C, NY, NY 10028. Purpose: @ 212-210-0189 lawful activity. 01930. Purpose: to own real estate. 10016. Purpose: any lawful activity. any lawful activity.

October 8, 2007 | Crain’s New York Business | 31 Project14 11/21/06 5:40 PM Page 1

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Music mogul Dupri reveals secrets of his success

places where artists and records putting money in the slot? She’s in Urban Island head break, especially in the South. In on it. She understands what my discusses influences, strip clubs the music gets nice and Body Tap world is all about. Good grimy. People can lose their inhibi- food, drinks, nakedness and, most life with Janet tions so you really get to know how importantly, good music. JERMAINE DUPRI takes Jackson in memoir they feel about the music. I’d even time out from say strip air play is stronger than ra- CHAPTER 12: WE BELONG TOGETHER his hectic pace. music mogul Jermaine Dupri’s star dio air play in Atlanta. gives readers a glimpse into the has been rising fast since Crain’s Se- A naked woman dancing in front author’s personal life, and his relation- nior Reporter Samantha Marshall of a customer tends to put that record ship with longtime love Janet Jackson.

first profiled the prolific producer in a new light. Wanna hit? Watch brett ratner for the newspaper in February 2005. how she moves those hips when your hings have always been so just real gracious and nice, joking Michael were always so close. Her interview with Mr. Dupri song comes on. If the girls are re- easy between us. There was around with each other and saying, Getting together with Jan was marked the beginning of a collabo- questing the track and shakin’ it to Tnone of the usual pressure I felt “Pass the biscuits please.” the first time in my life I felt like I was ration that would span more than the beat you know it’s gonna cross with my girlfriends in the past. Like I couldn’t get over how normal with a woman who’s also a friend and two years and result over into radio. It’s me, my girl was deep in the business the whole family was. The Jacksons a partner. I feel like I can breathe in Mr. Dupri’s like the girls are hit from day one.Like me,her family was were just a regular black family with around her. Now I have someone memoir, Young, detectors. That’s always involved. Like me, she was black people [stuff ] going on! They who is more than my equal and who Rich, and Danger- why guys wanting constantly traveling and working. play board games together. Jan’s I can bounce things off of. Jan will ous:The Making of a to get their demos She understands how your work can mom is even more competitive than give me an intelligent answer. She’s Music Mogul. heard try to pay off take you away. She does get jealous, I am. She can’t stand to lose and she educated and she knows stuff. Mr. Dupri had the strip club DJs to but with her I’m not always on the de- won’t give it up to anyone. The kids Life with Jan is just real normal. just taken the helm play ’em. They fensive, trying to explain how it is. all argue and tease each other like When we hang out, we hang out at of Virgin Records’ know some cat like It wasn’t long after we got togeth- siblings do and throw down when home. She’s a homebody. We don’t newly created ur- me is sitting in the er on that dream vacation when I met it’s time to eat.They tease me too.La want to be out on the road all the time. ban music division club studying how her whole family. It was Thanksgiv- Toya’s always making fun of me and when he met Ms. the ladies and the ing weekend when they invited me mimicking me on the phone. Jan Copyright © 2007 by Def Promotions Marshall. Since audience react to down to L.A. for a gathering. They finds it hilarious. LLC and Samantha Marshall. then,he has won his their song. don’t do Thanksgiving, but they get The Jacksons let me in with open Printed by permission. Excerpted from first Grammy and Strip clubs are together for a big family dinner. arms. When they were all going Young, Rich, and Dangerous, by made music history for real down an’ I was real nervous. When it’s a through it over Michael’s trial, I Jermaine Dupri and Samantha for producing and dirty grassroots girl with six brothers of course you’re spoke up for them. I wanted to de- Marshall, published by Atria Books, an co-writing Mariah marketing. Young gonna be intimidated. I was think- fend the family’s honor.They’re just imprint of Simon & Schuster Inc. Carey’s comeback Jeezy broke in strip ing the worst and worried they nice, loving people who deserved Available at local bookstores hit, We Belong To- clubs. Rick Ross’ would ask me all the hard questions better than getting raked over the and at www.simonsays.com. ISBN: gether, which has song “Hustlin’ ” did of life. I knew they’d be real protec- coals in the media. I also did it be- 0-7432-9980-9, $24.95. had more than 200 ‘I couldn’t get well—strippers tive of the baby in the family. But cause it was important for Janet.The million plays on ra- made money off of they didn’t grill me at all.They were trial was rough on her. She and COMMENTS? [email protected] dio—more than any over how it. They moved so other record. Mr. well they made their Dupri is now run- normal the customers happy ning Urban Island, and got more bills a new division un- whole Jackson thrown at them. THIS IS OUR MARKET... der Universal Mu- I’m probably the sic Group’s Is- family was’ only top label exec- land/Def Jam. utive in the world As a co-writer who goes to a strip of the book, Ms. club at least once a Marshall spent the week. Puffy goes better part of a year once in a while, but shadowing Mr. Dupri, keeping up you won’t see L.A. Reid or Jay-Z in with his hectic pace as he jetted be- the clubs. But for me it’s necessary. tween Los Angeles, Atlanta and That’s where I meet people, learn New York.The result is a candid sto- things and see what’s happening in ry of success that delves deeply into other people’s worlds.The clubs are the lives of Mr. Dupri and major like a gumbo of life. All together in artists he has worked with, includ- one building you can find the ing Usher, Elton John, Biggie straight white corporate guys listen- Smalls and his longtime girlfriend, ing to rap in their suits,alongside the Janet Jackson. The book describes hardest thugs who killed 10 people. how Mr. Dupri got his first big You get NBA guys mixing it up with break at the age of 17 when he dis- artists as well as regular dudes. It’s covered child rap duo Kris Kross, my chance to be in the thick of it all. and it traces Mr. Dupri’s own career For me musically the strip club is as a child performer and platinum- equivalent to the whole mixtape selling rapper. scene in New York. You get exposed The following excerpts are from to records you’re never gonna hear Admit One, the trusted source for the acquisition and sale of live event tickets for over 20 years… the book,which will be published on on the radio. It’s not like I’m going On the Buy side and Sell side — we offer our clients true market value, secure transactions and dependable service. Oct. 16 by Atria Books, a unit of Si- because I’m horny ... I’m not even in Let Admit One connect you and your clients to the events that matter. mon & Schuster. that mind-set. Call today, our market makers are standing ready to BUY or SELL all NFL regular season and MLB playoff tickets. People ask me if Janet gets jeal- CHAPTER 8: EVERY TIME THA’ BEAT ous because I’m always hanging out DROP discusses the influences behind in the clubs. Nah! She doesn’t care. (646) 307-4239 the songs Mr. Dupri produces. I even took her to Magic City with me one time. It was like a concert. www.admitone.com trip clubs are basically a way All the girls stopped dancing be- email: [email protected] into that street life. It’s always cause they saw her and wanted to be 1412 Broadway, New York, NY Snice to look at, but I’m not re- where she was.Y’all see that scene in SPORTS •THEATER •CONCERTS ally there for the booty. Magic City my video “Gotta Getcha” where and The Body Tap are my special Janet was playing a peep-show On the Bloomberg Terminal: Type TIXX or email [email protected] music laboratories. These are the stripper in a school uniform with me

October 8, 2007 | Crain’s New York Business | 33 CNYB 10-08-07 A 34 10/4/2007 5:46 PM Page 1

business—was one of the hardest hit STATEMENT OF OWNERSHIP, by the credit crisis that roiled the MANAGEMENT AND CIRCULATION markets this summer. Bear said last Wall St. layoffs accelerate (Required by 39 U.S.C. 3685) week that it was slashing 310 jobs, 1.Publication Title: Crain’s New York Business 2.Publication No.:000-209 none of which are in New York City, 3.Filing Date: 9-30-07 to hopes that the credit crisis was portfolio of bond businesses. from its mortgage origination busi- 4.Issue Frequency: Weekly Merrill axes 2 top 5.No.of Issues Published Annually: 52 nearing an end, Morgan Stanley, Although most of the other ness and combining all of those op- 6.Annual Subscription Price: $59.79 execs; Bear Stearns Credit Suisse Group and Bear 1,080 job cuts are occurring outside erations under one umbrella. 7.Complete Mailing Address of Known Office of Stearns Cos. all announced a fresh of New York, the fact that invest- Bear has reduced its mortgage Publication: 711 Third Avenue, New York, NY 10017-4036, New York County among hardest-hit round of mortgage-related layoffs. ment firms are still trimming back origination workforce, once 1,500 8.Complete Mailing Address of Headquarters or And Merrill Lynch & Co.ousted two on mortgage-related jobs is a sign strong, by 40%. General Business Office of Publisher: 711 Third Avenue, New York, NY 10017-4036 of its top fixed-income executives. that the fallout from this summer’s Morgan Stanley said it would cut 9.Full Names and Complete Mailing Addresses of BY CATHERINE TYMKIW Osman Semerci, Merrill’s global credit crunch is not yet over. around 600 mortgage-related jobs, Publisher, Editor, and Managing Editor: Publisher, Jill Kaplan, 711 Third Avenue, New York, NY 10017-4036; head of fixed income, currencies and Last week, Credit Suisse said it none in New York City.The compa- Editor, Greg David, 711 Third Avenue, New York, NY don’t pop the champagne cork on commodities, and Dale Lattanzio, was eliminating 170 mostly New ny will eliminate about 500 jobs 10017-4036; Managing Editor, Richard Barbieri, 711 Third Avenue, New York, NY 10017-4036. Wall Street just yet. Pink slips are head of structured credit products, York jobs in its commercial mort- throughout the United States, with 10.Owner (if owned by a corporation, its name and ad- still being handed out to those in were both shown the door—a move gage-backed securities division, and the rest occurring at U.K. subsidiary dress must be stated and also immediately thereafter the names and addresses of stockholders owning or holding 1 mortgage-related jobs. that comes as the brokerage readies a predicted that problems in the mar- Advantage Services. percent or more of total amount of stock.If not owned by As the Dow industrials chugged third-quarter financial report that is ket will linger as long as 18 months. a corporation, the names and addresses of the individual owners must be given.If owned by a partnership or other to a record high and investors clung expected to show steep losses in its Bear—a leader in the home loan COMMENTS? [email protected] unincorporated firm, its name and address, as well as that of each individual must be given.If the publication is published by a nonprofit organization, its name and address must be stated.) (Item must be completed.): Crain Communications Inc.1155 Gratiot Avenue, Detroit, MI 48207-2997; K.E.Crain, 1155 Gratiot Avenue, Detroit, MI 48207-2997.R.E.Crain, 711 Third Avenue, New York, NY 10017-4036; 11.Known bondholders, mortgagees and other securi- ty holders owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: None. 12.For completion by nonprofit organizations autho- rized to mail at special rates.The purpose, function, and nonprofit status of this organization and the exempt sta- tus for Federal income tax purposes (Check one). ❏ Has Not Changed During Preceding 12 months ❏ Has Changed During Preceding 12 months. (If changed, publisher must submit explanation of change with this statement) 13.Publication Name: Crain’s New York Business 14.Issue Date for Circulation Data Below: September 24, 2007 15. No. Copies of Average No. Single Copies Issue Each Issue Published Extent and During Nearest to Nature of Preceding Filing Circulation 12 Months Date A.Total No.Copies (Net Press Run) 65,595 65,231 B.(1) Paid/ Requested Outside-County Mail Subscriptions Stated on Form 3541. (Include advertisers proof and exchange copies 14,862 15,023 (2) Paid In-County Subscriptions (Include advertiser’s proof and exchange copies) 18,365 18,422 (3) Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Non-USPS Paid Distribution 675 641 (4) Other Classes Mailed Through the USPS — — C.Total Paid and/or Requested Circulation [Sum of 15b. (1), (2), (3), and (4)] 33,902 34,086 D.Free or Nominal Rate Distribution: (by mail and outside mail) (1) Free or Nominal Rate Outside-County Copies included on PS Form 3541 24,786 26,467 (2) Free or Nominal Rate In-County Copies included on PS Form 3541 2,243 — (3) Free or Nominal Rate Copies Mailed at Other Classes Through the USPS (e.g. First-Class Mail) —— (4) Free or Nominal Rate Distribution Outside the Mail (Carriers or Other Means) 327 73 E.Total Free Distribution (Sum of 15d (1),(2),(3), & (4)) 27,356 26,540 F.Total Distribution (Sum of 15c and 15e) 61,258 60,626 G.Copies not distributed 4,337 4,605 H.Total (Sum of 15f, and g 65,595 65,231 I.Percent Paid and/or Requested Circulation (15c / 15f x 100) 55.34% 56.22% 16.This Statement of Ownership will be printed in the 10-08-07 issue of this publication. 17.I certify that the statements made by me above are correct and complete. Jill Kaplan Publisher

34 | Crain’s New York Business | October 8, 2007 CNYB 10-08-07 A 35 10/4/2007 5:39 PM Page 1

BUSINESS LIVING LARGE Architect stays green with an eco-friendly condo PAGE 36 buck ennis

GOTHAM GIGS Wedding waltzer ERIN BOMBOY, 30, is not your typical dance instructor. She visits the homes of engaged couples and teaches them their wedding dance. GOTTA DANCE Two years ago, Ms. Bomboy advertised her services on Craigslist. Before she knew it, Start Dancing was born. In the busy season— March through October—Ms. Bomboy, another full-time in- structor and three part-timers teach 35 couples a week. NOT ON TV Packages range from an 11-session program, priced at $750, to a “Band- Aid” single session for couples calling at the eleventh hour. “This is no Dancing With the Stars-type thing,” explains Ms. Bomboy.“We take social dancing elements and mix them together. Couples know what they’re doing without looking like they’re on stage.” I GOT RHYTHM Ms. Bomboy’s proudest moments come when she sees her students in action. At the last wedding she attended, the bride and groom, Hottest wedding accessories: whom Ms. Bomboy taught for Hottest wedding accessories: several months, received a standing ovation after their dance. “A lot of people think they have no rhythm,” she fall foliage & crisp weather says. “But partner dancing is all very logical.There’s nothing mysterious about it.” istockphoto —adrianne pasquarelli BY AMANDA FUNG no choice,” says Ms. Wisner, 31, who archives illustrations for EXPERT OPINIONS magazines. “I couldn’t get a date in October.” ast year, Meredith Wisner toured half October is fast becoming one of the most popular months WHERE CAN I DINE a dozen sites in Brooklyn and upstate of the year for weddings, and it has everything to do with the AL FRESCO? New York, seeking the perfect location weather. A cool, crisp day is preferable to a scorcher in July or for those looking to pro- for her October wedding. But each one August, and the fall foliage often makes a more interesting long summer, some great New was already booked. backdrop for photos than June’s blue skies. Bold fall colors can York restaurants still have out- door seating.Try Hill Country, While the bride-to-be wasn’t too liven up the banquet hall. And couples don’t have to ask guests 30 W. 26th St., after 5 p.m. picky about price or location, she was to plan their summer vacations around a wedding date. during the week and all day on determined to have her special day in October ceremonies accounted for 9.7% of New York state weekends. Havana Central, at October. She got what she wanted only weddings in 2004—the latest year for which data are available, 2911 Broadway, offers lunch, after hiring a wedding planner, who knew about venues that versus 8.4% in 1997—figures from the New York State Vital dinner and brunch.The outdoor space has heaters, so Ms. Wisner hadn’t heard of.The ceremony will be this Friday. Statistics Database show.The month’s popularity here mirrors guests stay toasty. Heartland L“We felt like we had exhausted our options and there was a national trend: 12% of engaged See HOTTEST on Page 36 Brewery, 93 South St., is great for people-watching. Most eateries don’t take reservations SURVEY SAYS: for outdoor seating, so get out early and enjoy a little elbow- National figures show bending after work. October gaining on June. —arlene spiegel 100,000 137,000 Restaurant consultant Source: TheKnot.com WEDDINGS IN OCT. 2007 WEDDINGS IN JUNE 2007

October 8, 2007 | Crain’s New York Business | 35 CNYB 10-08-07 A 36 10/4/2007 5:42 PM Page 1

BUSINESS LIVES LIVING LARGE Eco-architect finds cutting-edge condo with Harbor view Sketches of green downtown residence VITAL STATS PROPERTY One-bedroom, caught his eye; no two-bathroom condo DENNIS WEDLICK, sitting in the sales remodeling needed ADDRESS 1 Rockefeller Park, 31F office of Riverhouse, says that green ASKING PRICE $1.7 million living fits his ethic. BY ALIX STRAUSS PURCHASE PRICE $1.7 million CLOSING DATE November 2008

rchitectDennis Wed- roger hagadone lick makes his living by helping people pur- City, the building overlooks New in the open-space kitchen,stone tile The amenities prove as impres- he lived for 18 years in a railroad chase and design their York Harbor. in the bathrooms. No design or re- sive as the panoramic view of the riv- apartment in Hoboken and com- dream homes. He’s cre- A few sketches was all it took for modeling will be needed—an ironic er that Mr. Wedlick and his partner muted to the city for work.When he Aated abodes for artists and titans of him to drop $1.7 million on an twist for a man known for his for- will see from their 31st-floor apart- opened his own architecture firm in industry and even a lifestyle model 1,100-square-foot, one-bedroom, ward thinking and innate under- ment. A library, billiards room, me- 1992,it was inevitable that he’d crave for Country Home magazine.He be- two-bathroom apartment in the de- standing of decorating. dia café and restaurant, indoor play- a Manhattan lifestyle. gan his career working for famed ar- velopment that day. The building “We may move the washer and ground and garden made the chitect Philip Johnson. will open in November 2008. dryer,”he jokes.Then more serious- building all the more attractive. But First choice Now, the visionary designer and “I’m madly in love with the Hud- ly,he adds:“Most people thought I’d it was the on-site parking that broker-free, he purchased his lat- author of four books will be furnish- son River and have a strong fondness buy something more raw or a larger pulled at his nesting strings. est prize without looking at other ing his own luxury pad. for Battery Park,” says the entrepre- space where I could build. If I Aside from the extensive travel properties six months ago. Until the Mr. Wedlick’s requirements for a neur, sitting in the conference room hadn’t designed my own house in Mr.Wedlick does for his design and condominium is finished, he and his new apartment were few: a magnifi- on the second floor of the River- the country, then they’d be right. housing projects, he commutes of- partner will reside at the nearby Ritz- cent view of the Hudson River, two house sales and discovery center, a But it’s more exciting for me to ten to his weekend dwelling in the Carlton in a one-bedroom unit. bathrooms and an eco-conscious en- mop of curly, tousled hair framing move into a building that offers an Hudson Valley. He also travels be- “Riverhouse will be more cut- vironment. After all, his eponymous his lean face.“My partner and I were innovative way of life.” tween his two offices—one in ting-edge with its green lifestyle and firm is a member of the U.S. Green really just window-shopping, they TriBeCa and a second, the Hudson high design quality,” he says. “We Building Council, which promotes hadn’t even broken ground yet. But Clean air and water River Studio in downtown Hudson, knew it was going to be more mon- responsible construction. when I saw the drawings and learned since green is the theme, the which opens this month. The cou- ey,but I’d realized I’d be investing in The desire to walk the walk drew about the concept behind the build- building is outfitted with filtered air ple also owns a home in Miami. my own mission statement about him to look at Riverhouse, the ing, we were sold.” and water and nonemitting carpets Mr.Wedlick grew up in Secaucus, living green and being socially re- greenest development property in Upon completion,the apartment and paints. Energy Star-compliant N.J., with his parents and two sib- sponsible.” New York, designed by David will boast high-quality finishes: appliances are provided in each lings in a home his father, a contrac- Rockwell. Located in Battery Park bamboo floors, lacquered cabinets apartment as well. tor,built and designed.After college, COMMENTS? [email protected] Hottest wedding accessories MAY THE BEST BRIDE WIN OCTOBER USED TO MAKE ME THINK of Halloween and witches dressed in black. Continued from Page 35 to,’’ says Bentley Meeker of Bentley edge off what is already a stressful Now the month conjures up visions of elaborate weddings and brides in white. couples plan to get married in Octo- Meeker Lighting & Staging Inc. in day. Nothing is worse than schlep- That’s because I’ll be getting married in October—Oct. 18, 2008, to be exact. ber this year compared with 14% in Manhattan, which handles both ping around in a white gown to take Just a few weeks into my recent engagement, I started calling reception June,according to wedding Web site everyday and celebrity weddings. photographs in hot, sticky weather. halls. I had thought we had plenty of time to plan our wedding, but I was TheKnot.com. While costs for October events After Kim Malone, a 25-year- wrong. Saturday evenings in October were booked at almost every venue. “October is the new June,” says now match those for June, couples old sales and marketing profession- My fiancé and I had to hustle. So when we heard that a couple had Harriette Rose Katz, founder of can save during other months. al for a Manhattan-based printing rescheduled their Tuesday appointment to reserve The Royalton Mansion Gourmet Advisory Services, a “I was told by vendors that prices company, decided last year to get for our chosen date—shifting it to Thursday—we resorted to an act of Manhattan-based caterer. “It is an drop in November, when the peak married in October 2008, she paid desperation. We raced through rush-hour traffic on Wednesday to Roslyn extremely beautiful time of the year season ends,”says Michelle Bussani, close attention to the autumn weath- Heights, L.I., and handed a Royalton manager a check. to get married: The weather is di- a 27-year-old conference producer er.It was never humid or muggy,and A day later, I received an e-mail in response to one of my message-board vine, and people feel good.” at the Institute for International Re- it almost never rained. postings asking October brides to contact me for this story. This bride-to-be The Upper Crust Inc., a Man- search, a Manhattan-based event- “There’s also nothing like a sun- confirmed that finding a location in October was indeed difficult. In fact, she hattan-based catering and event- production company. set in October,which is exactly what had only two venues left, and one was The Royalton. planning firm, now handles two or we planned everything around,” I was too embarrassed to tell her that she actually only had one. three times as many weddings in The reception comes first Ms. Malone says. —AMANDA FUNG October as it does in June, July or the queens village resident be- Ed Schoenfeld,a restaurant con- August, owner Dan Fehlig says. gan planning her wedding days af- sultant, and financial analyst Elisa Perhaps the best proof of Octo- ter she got engaged in May. When Herr chose to wed this month for the ber’s rise in popularity is that ven- she came across Jericho Terrace, a same reasons.They exchanged vows shares October’s attributes, many Ms.Bussani’s five bridesmaids will dors in the wedding industry no reception hall on Long Island that in front of 90 guests behind their couples say it still feels like summer. be draped in cherry red gowns and will longer discount their prices during she loved, she learned that it wasn’t Victorian-style home in Prospect “The leaves are not changing col- carry bouquets of yellow roses. Ms. that month. The owners of The available on the October 2008 date Park South,Brooklyn,on Sunday.It or in September,” says Ms. Wisner. Malone will have her six brides- Foundry,a two-level loft in Long Is- for which she had reserved the is Mr. Schoenfeld’s third marriage, Those colors free brides from the maids wear plum-colored dresses. land City, Queens, will charge cou- church.Not to worry.She went back but this was his first fall wedding. plain pastels of spring. “I’m definitely not a pastel kind ples $7,000 to rent the space for a and changed her wedding day. “It was a matter of using our “It is not just about a white-and- of girl,” says Ms. Malone. “So these Saturday wedding in October next “We had to work with the church, beautiful garden, pond and water- pink wedding anymore,” says Mr. colors and this time of year worked year, the same rate as in June. but it was fine,” Ms. Bussani says. fall,” he says. “It looks very pretty Fehlig of The Upper Crust. “Brides out great for me.” “We don’t discount for October Most bridal experts agree that the this time of year.” have a lot of fun with bold, autum- weddings now,because we don’t need brisk days of October can take the Though some think September nal colors.” COMMENTS? [email protected]

36 | Crain’s New York Business | October 8, 2007 CNYB 10-08-07 A 37 10/4/2007 6:08 PM Page 1

BUSINESS LIVES CORPORATE LADDER Carolyn Reidy A woman in the house Simon &Schuster The new structure will allow Ms. Reidy to continue to be a sounding PERSONNEL FILE CEO-designate first board for editors and publishers. She has been instrumental in bring- COMPANY Simon & Schuster female CEO; will cut ing key properties to the house, in- TITLE Chief executive, as of Jan. cluding books by Hillary Clinton, 1, 2008 out a corporate layer Joel Osteen and Dr. Phil. Ms.Reidy,known as both a savvy AGE 58 BY MATTHEW FLAMM long-range strategist and a hands- RÉSUMÉ President, adult trade on publisher, “reads every damned division; president, trade division he chief executive- book we publish,” one veteran exec- designate of Simon & utive says. MANAGEMENT STYLE Direct Schuster doesn’t have a INDISPENSIBLE GADGET iPhone power desk, and she Won over doesn’t plan to get one. after moving to New York so that TCarolyn Reidy will be the first her husband could attend Columbia been adept at managing the divi- woman to head the publisher when Business School, Ms. Reidy landed sion’s relationship with its string of she takes over in January.She’s hap- her first publishing job in the sub- parent companies. CBS Corp. is py with the elegant rectangle of pale sidiary rights department at Ran- now its owner. marble in her office and sees no rea- dom House. She was finishing her Boosted by blockbusters The Se- son to acquire the heavy, dark desk doctorate in English literature at In- cret and You: On a Diet, revenues

that is standard in the C suite. diana University at the time and spiked 14% in the second quarter of buck ennis Likewise, Ms. Reidy, who has thought she was headed for acade- 2007,to $200.3 million,and operat- been president of Simon & Schus- mia.But the variety and pace of sell- ing income before depreciation and fied to do that.” Part of Simon & Schuster’s push ter’s adult trade division since 2001, ing rights won her over. amortization surged 90%, to $20.1 into religious publishing, it will be has no plans to replace herself. She’s She also impressed her bosses. million. Simon & Schuster is on Maintaining the streak the best-selling televangelist’s first fairly certain the troops can get “I brought her in to run Vintage track to deliver revenues of almost ms. reidy, who keeps an apartment title with the house. along without a general standing and then Avon, and she did a great $900 million this year.Revenues last in Paris and spends most of her free Though she is flattening the cor- over them. job,” says Howard Kaminsky, for- year were $807 million. time reading, is confident that Si- porate structure, Ms. Reidy intends “The six publishers who report to mer president of Random House The current CEO is sure his suc- mon & Schuster will continue its to keep a lot of things the same. me are very accomplished,”she says. and, later, William Morrow. “Good cessor is up for the job. “She knows winning streak. She notes that the “Simon & Schuster is a company “There will be less bureaucracy.” judgment, good person.” how the place works,”Mr.Romanos editors and publishers who have led of incredible energy that makes its Ms.Reidy is succeeding Jack Ro- Ms. Reidy will face some tough says. “It was very important to CBS its record sales are all still in place. own fortunes,” she says. “No one manos, who turns 65 next month comparisons.Simon & Schuster has that whoever came in could carry on Next week, the Free Press im- would want to change that.” and will become a consultant to the had four straight record-breaking [the company’s growth], and she print will ship 2.5 million copies of company in the new year. years under Mr. Romanos, who has was the one person uniquely quali- Mr. Osteen’s Become a Better You. COMMENTS? [email protected]

BUSINESS BREAKFAST FORUM

MEET LOWER MANHATTAN’S DEVELOPMENT CHIEF staten island homeport. envision the future. Avi Schick, Chairman of the Lower Manhattan Development Corporation, will discuss developments at the World Trade Center and Bay Street other projects under way downtown. He will be Tappan Park questioned by Crain’s editor Greg David and Jay DeDapper of WNBC-TV. Avi Schick

SEEKING PROPOSALS FOR... New York City Economic Development Corporation (NYCEDC) is seeking proposals for DATE: THURSDAY, OCTOBER 11, 2007 the redevelopment of five parcels in the former Homeport in Stapleton, Staten Island. PLACE: HILTON NEW YORK 1335 Avenue of the Americas between 53rd and 54th streets This exciting opportunity consists of three unique RFPs known as: TIME: Networking Breakfast 8:00–8:30 a.m. I Residential RFP Program 8:30–9:30 a.m. I Hotel with Restaurant/Banquet Hall RFP I Sports Complex RFP

COST TO ATTEND: RESPONSES ARE DUE NO LATER THAN 4:00 p.m. on Thursday, December 13, 2007. $70 for individual ticket(s) $700 for table(s) of ten Submission guidelines and requirements are outlined in the RFP, which can be downloaded at www.nycedc.com/rfp, or picked up at NYCEDC, 110 William Street, 6th floor, New York, NY, To register go to newyorkbusiness.com, or fax your business card and credit card information to “Schick Breakfast” at 212-210-0499. Monday - Friday, between 9:30 a.m. and 4:30 p.m.

You must be pre-registered to attend these events. All tickets are non-refundable. For more information, call the Events Hotline at 212-210-0739.

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October 8, 2007 | Crain’s New York Business | 37 CNYB 10-08-07 A 38 10/4/2007 6:10 PM Page 1

BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING Growthink: Emily Burg, 32, joined as Moskowitz Edelman & Dicker. AlixPartners: Pamela M. O’Neill, 42, director of strategy. She was formerly Dechert: Samuel B. Abrams, 50, joined as HOT JOBS joined as managing director. She had principal of Linea Capital, which she partner. He had been a partner at Jones been a principal at XRoads Solutions co-founded. Day. Group. Guy Carpenter & Co.: Joseph Vitale, 39, WANTED: PRESIDENT AND CEO Alvarez & Marsal: James P.McDermott, joined as senior vice president. He had MEDIA & ENTERTAINMENT 45, joined as managing director. He was been U.S. team leader, facultative Court TV: Matt Stueland, 31, joined as formerly a managing director at The solutions, at Benfield. director of programming. He was COMPANY Morgans Hotel Group Eagle Rock Group. New York Life International: Richard L. formerly manager of program JOB DESCRIPTION Head company that owns and operates 10 high-end Mucci, 56, joined as chairman and chief scheduling at Comedy Central. boutique properties, including the Royalton and the Hudson in New York ARCHITECTURE & DESIGN executive, international. He was GameDaily: Libe Goad, 33, was promoted Meridian Design Associates Architects: formerly executive vice president, group to editor in chief from managing editor. MOST IMPORTANT TASKS Expand existing hotels and open new ones William Hallisky, 37, was promoted to benefits, at Hartford Life. Independent Film Channel: Craig Parks, while managing $447 million in long-term debt vice president from senior associate. 37, was appointed vice president, Luis Roges, 56, was promoted to vice HOSPITALITY & TOURISM branded entertainment and business CREDENTIALS NEEDED Proven ability running a publicly traded hotel firm president from associate. Denihan Hospitality Group: Gregory M. development. He was formerly executive SALARY Previous president and CEO earned $750,000 last year WB Engineers|Consultants: William Smith, 49, joined as executive vice producer and creative director, special Connors, 40, joined as principal. He was president, human resources. He had been projects, at Rainbow Media Holdings. RECRUITER Spencer Stuart formerly a vice president at Cosentini senior vice president, human resources, at Lauren Burack, 28, was promoted to vice DOWNSIDE Competition from founder Ian Schrager, who left a year Associates. Kimpton Hotels & Restaurants. president, event marketing and Events at The Plaza: Steven Rice, 46, promotions, from director of event before Morgans went public in 2006 and started another line of hotels FINANCE & INSURANCE joined as general manager. He was marketing. UPSIDE Chance to oversee hotels that attract celebrities and high-fliers AXA Equitable Life Insurance Co.: Claude formerly executive director of catering at Ion Media Networks Inc.: Brett Jenkins, Methot, 43, joined as senior vice Hotel Bel Air. 37, was appointed director of technology Last month, Morgans named Fred Kleisner, a company director, interim president and chief product officer. He Millennium Hotels & Resorts: Mark strategy and development, a new president and CEO to temporarily replace W. Edward Scheetz, who had was formerly senior vice president at Sanders, 49, was appointed regional vice position. He had been TV transmission held the job since 2005 and resigned for personal reasons. The AXA Group. president, New York hotels, and general U.S. product manager at Thomson company reported revenues of $279 million last year, up 7% from manager, Millennium Broadway Hotel Broadcast & Multimedia Inc. 2005, and it forecasts revenues of more than $300 million in 2007. and The Premier. He had been area Sports Illustrated magazine: Amy Steiner, EXECUTIVE PROMOTIONS —AMANDA FUNG general manager for Marriott in New 37, was promoted to executive director Crain’s lists the promotion and hiring of New York Orleans and general manager of the of brand marketing from director of area senior executives on a space-available basis, New Orleans Marriott Hotel. client marketing. with priority given to positions in New York City. The fastest way to get an announcement into LAW REAL ESTATE Crain’s is to submit details online by filling out the Akin Gump Strauss Hauer & Feld: Jordan Colliers ABR Inc.: Len Eagle, 55, joined as principal at FSI Project Management, 49, was named vice president and form at www.NewYorkBusiness.com/submit. J. Metzger, 49, joined as partner. He had senior managing director. He had been which he co-founded. national commercial manager. He had The Executive Moves column is also available been counsel at Herrick Feinstein. principal at FSI Project Management, Massey Knakal Reality Services: been vice president of sales at Stewart online. Chadbourne & Parke: Hal M. Stewart, 52, which he co-founded. Ed Gevinski, 31, was named director of Title Insurance Co. Crain’s cannot confirm receipt of listings or say joined as chief operating officer. He was Joe Yacovone, 53, joined as senior sales. He had been a broker intern. —adrianne pasquarelli when they will appear. formerly chief executive at Wilson Elser managing director. He had been Statewide Abstract Corp.: John Sullivan, and sarah studley

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38 | Crain’s New York Business | October 8, 2007 CNYB 10-08-07 A 39 10/4/2007 5:01 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape extinguishes it like a wet tortilla. Desperate for salt and any depth of flavor are the guacamole,bean and Autumn is spinach-and-cheese spreads billed as The Triple Dip, served as a sharing platter with multicolored taco chips for $18.The law of averages suggests Now Open that at least one of these dips might have been passable. Not so. Other starters and salads ($9 to $14) include too-sweet hickory- smoked chicken wings, thinly ###### Time Out New York stuffed goat cheese and roasted veg- etable quesadillas,and an acceptable #### Crain’s New York Business small plate of smoked chorizo and pickled okra. Among main courses, slices of Texas brisket have the right smoky

buck ennis edge, but the promised redeye gravy IN NEED OF STATE AID: The mechanical bull is the focal point at Johnny Utah’s, where the was scant,and the beans and rice with promise of Southwestern food from former Blue Smoke staffers falls far short of expectations. the beef were pedestrian. Smoked pork spareribs with the house BBQ sauce were little better, and a bone- in rib-eye needed serious help from chili spicing. Its absence revealed a disagreeably fatty piece of meat. This town ain’t Could things get worse? You bet. A halibut chalupa with green chili was so past its prime that its unpleas- ant bouquet wafted across the table big enough … well before the plate was even put in Park Avenue Autumn place.We returned it without taking 100 E. 63rd at Park Avenue Johnny Utah’s saloon The food? Well, that’s more so much as a bite; in fact, the dish problem than peril. may have been returned before it ac- 212.644.1900 is irredeemable, from Johnny Utah’s potential appeal to tually arrived. The staff did not ask www.parkavenyc.com New York-based fans of Tex-Mex whether a replacement was desired, outdated themes to and other Southwestern food is the but they did delete the odoriferous restaurant’s claim to have corralled offender from the tab. overhyped chefs’ food not one but two of the kitchen cadre Three out of four desserts lived of Danny Meyer’s estimable Blue down to the achievements of earlier ts name is not linked to Smoke. I like Blue Smoke, and the courses: a bland, dry brownie; an John Maine, Joe Montana, prospect of well-made rustic grub overly thick-crusted pecan pie with Dakota Fanning, Minnesota lights my fire. What’s served here too few nuts inside; and a strawber- Fats, Mississippi Burning or ry “shortcake”that was just a mound even Missouri Breaks. John- of whipped cream and berries over a ny Utah is the FBI agent played by chewy Belgian waffle. One of our I A MATTER OF Keanu Reeves in the 1991 surfer/ac- number actually enjoyed a banana tion film Point Break. That sure pudding. Without caviar. Perspective catches the crest of contemporane- The mechanical bull usually gets ous restaurant-naming—it’s almost challenged after 9 p.m. Before then, as catchy as Caviar & Bananas. however, you can be thrown by a lot Stock guru Jim Cramer opined of bad food. recently that it’s time to go bullish. But he meant on stocks,not the me- COMMENTS? [email protected] chanical bull that is the centerpiece of Johnny Utah’s, a new urban sa- loon in midtown. I should have surmised that all was less than cool when staffers of the Rockefeller Center Hotel, the JOHNNY UTAH’S bull’s abutter, professed to have no 25 W. 51st St. (between Fifth and Sixth avenues) knowledge of what was going on (212) 265-UTAH downstairs or when the place was open, and didn’t seem to care. Re- No stars M&K takes a closer look. turning two weeks later, I encoun- CUISINE Southwestern tered a chef climbing the steep, As certified public accountants and business consultants, WINES 63 choices, 11 by the poorly lit and potentially dangerous glass we understand that the difference is in the details. From number - stairway that I was descending. crunching to strategic business planning, M&K looks at your Good move, chef! DRESS Casual business and financial situation from every point of view. It’s not just The only perils in the 400-seat NOISE LEVEL Absurd subterranean corrida are punctured about the bottom line, but how you get there. That’s the M&K Way. eardrums from the din, perforated PRICE RANGE $19-$28 pride from getting tossed onto the WINE MARKUP 120%-250% pillows ringing El Toro, or torched tongue from some of the cocktails. CREDIT CARDS All major One called Mexican Heat—jala- RESERVATIONS Suggested peño-infused Cazadores Reposado, HOURS Lunch, Mon.-Fri., triple sec and fresh citrus—is so in- noon-3 p.m.; Dinner, Mon.-Sat., Marcum & Kliegman LLP fernal, it can be smelled three inch- 5 p.m.-midnight Certified Public Accountants & Consultants es from the glass. A helpful waitress NEW YORK warned of its character, vowing to ####= Outstanding Can you guess swap the drink for something else if ###= Excellent MELVILLE www.MKLLP.com 800.921.0777 what this image is? we didn’t like it. We didn’t, and she ##= Very good GREENWICH # Email your answer to: brought a glass of nasty bar Shiraz = Good GRAND CAYMAN (my next mistake) in its place. [email protected].

October 8, 2007 | Crain’s New York Business | 39 Project4 10/2/07 12:37 PM Page 1