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WHAT’S DRIVING NICOLE Inside the unlikely campaign of the woman who would be the city’s rst female mayor PAGE 15 Plus: Republicans have a New York problem PAGE 17
FILM EXECS BALK THE LIST KUSHNERS VOL. XXXIII, NO. 43 WWW.CRAINSNEWYORK.COM AT WEINSTEIN- TOP CALL IN INSPIRED POLITICAL THE PR ANTI-HARASSMENT DONORS CAVALRY BILL P. 5 P. 14 P. 18
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P001_CN_20171023.indd 1 10/20/17 6:41 PM OCTOBER 23 - 29, 2017 CRAINSNEW YORK BUSINESS
FROM THE NEWSROOM | JEREMY SMERD | EDITOR IN THIS ISSUE
Don’t ask 4 IN CASE YOU MISSED IT 5 ENTERTAINMENT City leaves STARTING OCT. 31, all New York City employers regardless $1 billion 6 WALL STREET in nes of size will be banned from asking prospective employees uncollected about their salary history. Mayor Bill de Blasio signed the 8 REAL ESTATE law this year as a way to address pay inequities between 10 ASKED & ANSWERED men and women. 11 VIEWPOINTS Census data show that men in New York City earn more FEATURES than women even when factoring for di erences in educa- tion. Among full-time, year-round workers, men’s median 14 THE LIST: TOP POLITICAL DONORS income was $50,195—$3,865 more than women’s. e dif- 15 A WOMAN APART ference is even more skewed when comparing average 17 NY REPUBLICANS’ PROBLEM wages: Men dominate executive positions in the high-pay If an employer does 18 KUSHNER COS. CALL FINSBURY industries of nance, insurance, real estate and tech. it again, now we I believe men and women in the same job should earn “ the same amount. Will not asking about salary history know it’s intentional, bridge the gap? Most employers already know what they because they are willing to pay. ey o er the salary they think the know the law position and the individual is worth—which remains an art and not a science. e law will help women who hand- icap themselves by honestly telling prospective employers how much they most recently made. e law’s biggest impact will be to set an expectation of fairness. at’s no small P. 25 JOHN CAPO accomplishment. e Harvey Weinstein scandal has shown that women have a ways to go in their quest for equal treatment in the workplace. Melissa DeRosa, 25 GOTHAM GIGS the governor’s secretary, has said sexism is “alive and well” in politics. Republi- 26 SNAPS can mayoral candidate Nicole Malliotakis, the subject of this week’s cover story 27 PHOTO FINISH (page 15), has spent a career ghting powerful men. Regardless of what the business community thinks of the law, employers must comply with it. e city’s Human Rights Commission, which has been charged with enforcement, can ne companies up to $250,000 and award dam- ages to victims. e agency will be responding mainly to complaints. Last year it received 883, about half of which were employment-related. Already most busi- nesses are banned from doing credit checks on applicants and asking about their criminal history. e chairwoman of the commission, Carmelyn Malalis, told Crain’s during a visit to the newsroom last week that she’s not out to punish. She is likely to rst educate employers and have them post the law. Rather than levy a ne, she could ON THE COVER require compliance training. Second-time o enders, though, won’t be so lucky. PHOTO: BUCK ENNIS “If an employer does it again,” Malalis said, “we know it’s intentional, because they know the law.”
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CONFERENCE CALLOUT OCT. 25 Go to CrainsNewYork.com READ Councilman CRAIN’S FAMILY Ydanis Rodriguez said BUSINESS SUMMIT a bill he’s planning > JOIN US WEDNESDAY for our to introduce to second annual family business save taxis is also a summit. This year’s conference conversation starter. looks at what sustains a business He’s calling for cab through the generations. Panelists owners to be allowed to include Douglas Durst, president of operate two taxis with a single medallion. The Durst Organization. ■ Lawyers say the city’s rezoning of Inwood NEW YORK ATHLETIC CLUB in northern Manhattan is leading to tenant harassment as landlords of newly 8 to 10:30 a.m. purchased buildings look to rid themselves [email protected] of rent-regulated apartments. ■ The NYPD is stepping up its training of Vol. XXXIII, No. 43, Oct. 23, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 19, by Crain Communications Inc., 685 Third Ave., police to better deal with New Yorkers’ New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address mental health issues. In the past two years, changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. police have killed seven people when For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. responding to calls of emotional distress. (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. BUCK ENNIS, STEVE FRIEDMAN
2 | CRAIN’S NEW YORK BUSINESS | OCTOBER 23, 2017
P002_CN_20171023.indd 2 10/20/17 5:29 PM WHAT’S NEW OCTOBER 23, 2017
AGENDAHere’s to you, New York: Changing laws raised the state’s spirits
sk businesspeople about what government gets wrong and you will surely get an earful about picayune regulations, pu- nitive nes and onerous taxes. But every so o en the public sector succeeds in making commerce easier without any ap- Aparent downside. When it does, a toast is in order. at is the case with Albany’s e orts to help the state’s cra -beverage TASTE OF industry. Governments since at least the days of the Puritans have been NEW YORK: geared toward restricting the consumption of alcohol, despite its being Cacao Prieto in Brooklyn and ingrained (so to speak) in human culture since hunter-gatherers rst hap- other beverage pened upon fermented fruit. Anachronistic blue laws persisted for cen- makers help local economies. turies, limiting when and where drinks could be brewed, distilled, sold and consumed. Even a er Prohibition ended in 1933, the specter of Al Capone haunted the industry for decades as government ocials seemed Gov. Andrew Cuomo, who took oce in 2011, recognized the indus- consumed by an outdated mission. try’s potential to create urban and rural jobs and enhance communities. He Nonetheless, the business grew immense but came to be dominated in has worked actively on its behalf. In 2013 he signed a bill loosening regu- the U.S. by a few gargantuan companies. When Rheingold and Schaefer lations on smaller breweries that use crops harvested in the state. Last year closed their Brooklyn operations in 1976, the city was le without a sin- Albany overhauled New York’s 80-year-old Alcoholic Beverage Control gle brewery. Today there are several dozen, Law, allowing drinks to be sold before noon and Brooklyn Brewery is the nation’s largest Modernizing archaic alcohol laws has on Sundays and reducing fees on breweries, exporter of cra beer. A reduction in excise wineries, distilleries and cideries, among taxes and the legalization of home brewing the craft-brewing industry hopping other measures. Now the industry is raising helped cra beverage–making proliferate in and distilleries raising a glass its glass to New York. Distilleries declared the 1980s. It was a bumpy ride—hundreds last week New York Rye Week to promote of cra brewers in the city went belly-up in Empire Rye, a new designation for whiskeys the 1990s—but entrepreneurs learned from those failures and got back on with at least 75% of their rye grown in New York. their feet. Growth has been robust ever since, and a number of operations Remnants of New York’s archaic alcohol laws remain, including narrow in the boroughs have even become tourist attractions. For a while distill- restrictions on who can own and operate liquor stores and a ban on wine eries were le behind, but they have been catching up since a 2007 state law sales in grocery stores. But the push for modernization has momentum aided those that use New York–grown grains and fruits. heading into the legislative session next year. Bottoms up! — THE EDITORS
FINE PRINT Congress this week is expected to take up the State Department nomination of Steve Goldstein, a New York communications and branding executive who once worked for Dow Jones, as public diplomacy undersecretary. Goldstein also worked for TIAA-CREF as its chief communications of cer at the same time as former lobbyist Daniel Keniry, who is married to Margaret Peterlin, the secretary of state’s chief of staff.
BY GERALD SCHIFMAN STATS 25 WORDS OR LESS PRIME LOCATIONS
CITIES ACROSS THE COUNTRY are lining up to host Amazon’s second headquarters. AND THE C You guys voted for a New York has an edge over top contenders Denver and Austin but disadvantages too. “Red Sox fan? It’s like I don’t even know you anymore.” ITY — Jimmy Kimmel, speaking to a studio Number of city residents with a Portion of the city’s population bachelor’s degree or higher, four % living within a quarter mile of audience in Brooklyn, where he lmed 2.2M times the amount in Austin and 97 public transit his show last week. Kimmel was Denver combined responding to Mayor Bill de Blasio’s Combined state and local tax rate on Median rent for a one-bedroom assertion to the Daily News that it is % a $100,000 salary in New York City, apartment in New York, 53% higher “constitutionally impossible” for him 8.8 compared with 4.6% in Denver and $2,521 than in Denver and 113% higher to root for the Yankees. zero in Austin than in Austin
BUCK ENNIS, BLOOMBERG NEWS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY. SOURCES: American Community Survey, GoBankingRates, Partnership for New York City, SmartAsset
OCTOBER 23, 2017 | CRAIN’S NEW YORK BUSINESS | 3
P003_CN_20171023.indd 3 10/20/17 7:27 PM AGENDA ICYMI CRAINSNEW YORK BUSINESS Publisher, VP Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701
EDITORIAL Retail might never recover, no editor Jeremy Smerd managing editor Brendan O’Connor assistant managing editors Erik Engquist, matter what the mayor says Jeanhee Kim, Robin D. Schatz copy desk chief Telisha Bryan O SOONER HAD THE CITY submitted its bid to win art director Carolyn McClain Amazon’s new headquarters than Mayor Bill de Blasio photographer Buck Ennis senior reporters Joe Anuta, Aaron Elstein, made clear his true feelings about the company. Matthew Flamm, Daniel Geiger N reporters Jonathan LaMantia, Caroline Lewis “Something di erent is happening now that is very destruc- data reporter Gerald Schifman tive to communities,” he said Oct. 19 during a town hall in web producer Peter D’Amato Brooklyn. “A lot of people are turning to Amazon and other columnist Greg David contributors Tom Acitelli, Theresa Agovino, online options.” Will Bredderman, Erik Ipsen, Cara S. Trager
e mayor’s words gave voice to critics who tried to pressure ADVERTISING the city ahead of the bid not to o er Amazon tax incentives, www.crainsnewyork.com/advertise even those considered “as of right” and available to any com- advertising director Irene Bar-Am, HALL ABOUT THE FOOD: Japan Village, due to open in the 212.210.0133, [email protected] pany that meets certain criteria. spring, will expand the menu choices at Industry City. senior account managers Lauren Black, Zita Doktor, Rob Pierce, But demonizing Amazon and online shopping is unlikely Stuart Smilowitz, Debora Stein to reverse the steady decline of brick-and-mortar retail. Persistently high vacancy rates in some of the choicest senior marketing coordinator Charles Fontanilla, 212.210.0145 corridors in town have pulled down rents from 2015’s unsustainable highs. Landlords chasing the deals of the [email protected] past, especially ashy agship stores that overpaid for space, are sure to be disappointed, Brad Mendelson, Colliers sales coordinator Devin Arroyo, International vice chairman, said last week during a Real Estate Board of New York panel discussion. “I’m not sure 212.210.0701, [email protected] ONLINE [rents] will ever see the levels they were at,” he said. “ ere’s only so many people who want to lose money.” general manager e peak also was in ated by owners of sleepier side-street properties who used to rent ground- oor space to Rosemary Maggiore, 212.210.0237, [email protected] doctors oces and other neighborhood services but started chasing bigger deals. CUSTOM CONTENT It’s not all bad news. E-commerce companies are likely to use physical stores to advertise their online wares. director of custom content So-called experiential retail gives customers a chance to encounter products in a way that can’t be replicated on a Patty Oppenheimer, 212.210.0711, [email protected] computer. Clothing retailer Lafayette 148 last week said it would leave its SoHo oce for larger digs at the Brook- custom project manager Danielle Brody, lyn Navy Yard, but it plans to retain its concept store at 148 Lafayette St. [email protected] EVENTS Food halls, a trend started by Eataly, also have helped ll the retail void. e latest is Japan Village, a 20,000-square- www.crainsnewyork.com/events foot market set to open in the spring at Industry City in Brooklyn. — JEREMY SMERD director of conferences & events Courtney Williams, 212.210.0257, [email protected] manager of conferences & events Screen saver DATA POINT its annual list, dropping him 92 spots Adrienne Yee, [email protected] events coordinator Ashlee Schuppius, Private-equity rm Colony Capital, from last year’s rankings. e magazine ACCORDING TO THE URBAN GREEN [email protected] founded by billionaire Tom Barrack Jr., estimated that his net worth slid from COUNCIL, 5,005 CITY BUILDINGS AUDIENCE DEVELOPMENT is negotiating to purchase most or all of $3.7 billion to $3.1 billion, and that he director of audience & content the assets of e Weinstein Co. Barrack REDUCED GREENHOUSE GAS has about $100 million of cash on hand. partnership development Michael O’Connor, recently gave the lm studio an undis- 212.210.0738, closed amount of emergency cash to EMISSIONS BY 14% BETWEEN 2010 Taking the Liberty [email protected] keep it a oat amid Harvey Weinstein’s AND 2015, WHILE 4,200 BUILDINGS Katie Smith has assumed head coaching REPRINTS ongoing sexual harassment scandal. duties for the WNBA’s New York Lib- reprint account executive Lauren Melesio, CUT ENERGY USE BY 10%. erty. Smith was a three-year assistant to 212.210.0707 Hands-off approach departing coach Bill Laimbeer, who is PRODUCTION production and pre-press director Mayor Bill de Blasio said he will ght reportedly bouncing to a position with Simone Pryce Gov. Andrew Cuomo’s decision to allow have forgiven the nes of individuals the league’s San Antonio Stars, a team media services manager Nicole Spell
General Motors to test self-driving cars 17 and younger in order to reinstate the rumored to be relocating to Las Vegas. SUBSCRIPTION CUSTOMER SERVICE in the city. Chevy Bolts are scheduled privileges of those who amassed at least — CHRIS KOBIELLA www.crainsnewyork.com/subscribe to roam Lower Manhattan early next $15 in late fees. Many of the 160,000 [email protected] year. Safety operators will sit behind children who had been blocked from 877.824.9379 (in the U.S. and Canada). the wheel in case something goes awry. taking out books were from poor $3.00 a copy for the print edition; or $99.95 neighborhoods. one year, $179.95 two years, for print Old money meets new subscriptions with digital access. to contact the newsroom: JPMorgan Chase is buying California- AmEx losing top charge www.crainsnewyork.com/staff based online payments company Kenneth Chenault is retiring as Amer- 685 Third Ave., New York, NY 10017-4024 WePay. e deal is reportedly in excess ican Express chairman and CEO next phone: 212.210.0100; fax: 212.210.0799 of $220 million. JPMorgan plans to year. Chenault, 66, occupied the top Entire contents ©copyright 2017 apply WePay’s technology to the bank’s position for the last 16 years of a 37-year Crain Communications Inc. All rights small-business customers. career at AmEx. Vice Chairman Ste- reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license phen Squeri was chosen to replace him. agreement. Time is not on their side CRAIN COMMUNICATIONS INC Struggling Time Inc., which laid o More L-bow room Bovine intervention chairman Keith E. Crain about 300 people this year, is sharp- e MTA plans to introduce foldable vice chairman Mary Kay Crain ening its ax for 200 more employees, benches on the L line. e benches will The bull calf that was captured president K.C. Crain according to reports. e media com- be installed in four cars of eight-car in Prospect Park after escaping senior executive vice president Chris Crain pany is expected to make the cuts next trains; some will be locked in the closed from a slaughterhouse gets to secretary Lexie Crain Armstrong month, half of which are likely to a ect position during rush hour in order to live out his days at a New Jersey editor-in-chief emeritus Rance Crain chief nancial of cer Robert Recchia editorial sta s. t more passengers. animal sanctuary. Animal Control founder G.D. Crain Jr. [1885-1973] of cers had dubbed him Jimmy K., chairman Mrs. G.D. Crain Jr. [1911-1996] Turning the page Trump slump after Jimmy Kimmel, before the e New York Public Library, Queens Forbes pegged President Donald Trump sanctuary renamed Shankar.
INDUSTRY CITY INDUSTRY Library and Brooklyn Public Library as the 248th wealthiest American on
4 | CRAIN’S NEW YORK BUSINESS | OCTOBER 23, 2017
P004_CN_20171023.indd 4 10/20/17 4:52 PM AGENDA ENTERTAINMENT
Film industry balks at bill tying tax credit to sex-assault record HARVEY WEINSTEIN State reimbursed Weinstein’s production company at least $5 million since 2011 BY MIRIAM KREININ SOUCCAR
he lm and TV busi- Some crew members and complicated process of apply- annual $420 million tax credit, Rosenthal said she didn’t ness community is businesspeople were reluctant ing for the credit, would which recently was renewed believe the legislation would worried that a pro- to speak publicly for fear of dissuade producers from con- through 2022. Since 2011 discourage studios from com- posed amendment alienating Cuomo, a steadfast sidering shooting in New York. New York has received more ing here. But even if it does, Tto the state’s production tax backer of the successful tax than 1,150 applications for the she said, that was not her incentive would dissuade pro- credit, but a few voiced a com- Who would suffer? credit which, the state reports, main concern. ducers from shooting their mon concern. “I cannot imagine how this represents $17 billion in state- “Taxpayers should not be projects here. “While I agree [Weinstein’s] issue could be intermingled wide spending and more than subsidizing sexual assault,” In one response to the behavior is unacceptable, do with the tax credits. Studios 1 million jobs. So far this year, she said. “We don’t need to be alleged decades of sexual you jeopardize thousands of need to deal with harassment more than 40 TV series have helping companies that treat assault by Harvey Weinstein, jobs [and] millions of dollars issues on their own and draw applied for the program; the their employees so abysmally. Assemblywoman Linda Rosen- in wages, benefits and tax their own legal policy,” said state projects them to spend We have the opportunity thal, a Manhattan Democrat, is revenues on the potential bad Beth Kushnick, set decorator $1.4 billion, with 94,185 hires. now to say, ‘We won’t tolerate planning legislation that would behavior of one individual?” for The Good Fight, which is The Weinstein Co., which it anymore.’” require companies seeking the asked John Ford, president of currently shooting in Brooklyn was founded by brothers Melissa DeRosa, Cuomo’s state’s 30% tax credit to dis- Local 52, the studio mechanics and airs on CBS All Access. “It Harvey and Bob Weinstein, top aide, agreed. “The victims close the number of sexual union. “And where does it start would actually victimize the received at least $426,500 in of Harvey Weinstein, and all of harassment and assault claims or stop? The behavior of a pro- people who would be harassed New York production tax the Harvey Weinsteins before filed against them and the out- ducer? A director? A produc- the most—the production credits between 2011 and him, will be for naught if we come of each. Companies with tion assistant? These shows crew members—because it 2014, according to ProPublica. don’t use this moment as a a poor record of dealing with employ hundreds of people.” would absolutely stop business Additionally, Empire State societal course correction,” such abuse would be denied Crew members were wor- from coming here.” Development reports show DeRosa said Wednesday in the credit. The bill has received ried that even the extra paper- The production industry the state paid the company remarks at a Berkeley Col- preliminary support from Gov. work studios would need to has enjoyed record business $4.6 million last year for its lege symposium on women
Andrew Cuomo. submit, on top of an already since the state instituted the 2014 movie St. Vincent. in media. ■ AP IMAGES
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OCTOBER 23, 2017 | CRAIN’S NEW YORK BUSINESS | 5
P005_CN_20171023.indd 5 10/20/17 5:52 PM AGENDA WALL STREET
MongoDB IPO a shot in the RYAN, THE GODFATHER of NYC tech, arm for Silicon Alley adds a notch to his belt. Database company maintains billion-dollar market cap BY MATTHEW FLAMM
o far, so good: A er two days of Cambridge area, which has generated principal at Renaissance trading last week, database so - $28.7 billion from its startups since Capital, a manager of IPO ware provider MongoDB was 2010, according to data from Pitch- exchange-traded funds. still a billion-dollar company. book. New York companies produced “ e company is growing SAnd the New York tech scene had one $17.6 billion in the same period. what appears to be a solid more edgling leave the nest. e MongoDB IPO also signaled recurring revenue stream.” e success of the Times Square– the continuing in uence of the com- Overall revenue rose based company’s initial public o ering pany’s chairman and co-founder, Kevin 55%, to $101.4 million, in was signicant for a number of rea- Ryan, on New York’s tech scene. e scal 2017, which ended sons. With shares closing at 34% above co-founder of Gilt Groupe, Business Jan. 31, compared with the the $24 o ering price on the compa- Insider and, more recently, Nomad year before. to grow to $61 billion by 2020. “And it’s ny’s rst day, the event gave New York Health and Zola Weddings, Ryan has Founded in 2007 as 10gen, the a market that has not evolved in a very an upbeat story when it needed one. been a leading player ever since the rm develops so ware that organizes long time,” he added. Lately the city’s tech IPOs have been mid-1990s, when he ran ad-tech pio- “unstructured” information such as MongoDB could struggle to main- best known for two troubled perform- neer DoubleClick. He helped sell the video, text and graphics into a usable tain its rapid growth rate, though, ers: Brooklyn-based Etsy, whose stock is company to a private-equity group for database. In contrast, traditional data- according to James Kobielus, lead ana- down about 40% from when it debuted $1.1 billion in 2005. base so ware providers, like Oracle, lyst at research rm Wikibon. in April 2015, and meal-kit provider were built to handle information that e company is considered “iconic” Blue Apron, which has lost close to half Rapid sales growth despite losses ts onto spreadsheets. among developers, who regard its its value since its IPO at the end of June. e IPO was in some ways an MongoDB is also a pure technol- products as better geared toward the With a market cap around $1.5 bil- unlikely success: MongoDB has yet to ogy company in a city that is generally new world of data than those of legacy lion, MongoDB is now one of the most make a dime, and it lost nearly $87 mil- focused on ad-tech, nancial tech and database companies, Kobielus said. But valuable publicly traded New York lion in its most recent year. But the e-commerce. tech giants with global networks and City–based tech rms—not far behind numbers also show that it is growing “One of the things that has reso- deep pockets are increasingly setting Etsy, whose market cap is $1.9 billion. revenue from its existing customers—a nated with investors is that the database their sights on the same market. Exit value—the money gener- factor that at this point means more to market is one of the largest in all of so - “MongoDB has got a hugely loyal ated by acquisitions or IPOs—is one investors than losses. ware,” said Michael Gordon, the com- user base,” Kobielus said. “But Ama- of the few categories in which New “Once [MongoDB] gets the cus- pany’s chief nancial ocer. Spending zon, Microso and IBM have substan- York still lags behind its principal East tomer, they make progress within on database so ware totaled $45 bil- tial [database so ware] o erings of Coast tech-industry rival: the Boston- the account,” said Kathleen Smith, a lion last year, he said, and is expected their own.” ■
Thirty years after crash, does New York have more riding on healthy stock market? Although Wall Street has shrunk, the revenue it generates hasn’t BY AARON ELSTEIN
ast ursday was the 30th the impact was limited because the anniversary of Wall Street’s stock market had almost completely darkest day, when the Dow rebounded by the following October. Jones Industrial Average fell e 2008 crash was much more L22.6%. A drop like that today would painful, partly because the market fell mean a 5,000-point fall in the Dow. further and took more than ve years to Nobody knows if a Black Monday recover but also because Wall Street had will happen again, but it’s clear that a become more important to the New crash today would thrash New York’s York economy since Black Monday. overall economy just as it did in 1987, Today’s average Wall Street wage even though the nancial services sec- of $388,000 is nearly ve and a half tor represents a smaller percentage of times higher than the city’s median the workforce. household income. Average bonuses at’s because wage growth on the are 10 times larger than they were in Street has far outpaced other sectors. 1987, and some CEOs pocket hundreds e industry accounts for more than of millions annually. Total state tax 20% of all private-sector wages paid in collections didn’t recover from their the city, up from nearly 14% about 25 pre-crisis levels until 2012 because, years ago. And though heading into this even though the tourism, health care TRADING PLACES: Wall Street on Black Monday, Oct. 19, 1987. A crash today likely year securities industry employment would batter the city’s economy just as it did back then. and technology sectors have grown, was down 11% since the last crash—in Wall Street still supplies the state with 2008—the sector contributes the same nearly a h of its tax revenues. amount to state co ers as it did then. an important part of the economy.” was still a cottage industry. Goldman If the market does crash, many on (Greg David thinks tech could change Wage growth is the reason. In Sachs and other leading rms were or the Street might assume the federal gov- this calculus. See page 11.) 1987 the average Wall Street salary until recently had been partnerships ernment will arrange a rescue, as it did “Over the past decade, the city’s was $75,000, nearly four times the whose executives were on the hook in 1987 and, to a greater extent, in 2008. economy has become more diversi- real median city household income of when trades went bad. e CEO of Salo- A er all, the president is a New Yorker ed and less reliant on the securities $20,000. e average Wall Street bonus mon Brothers su ered a $2 million pay who has sta ed his administration with industry,” the state Comptroller’s Oce was $15,610, which went pretty far con- cut in 1987 and took home $1.2 million. many Wall Street executives. Plus, Sen. reported last year. “However, the indus- sidering the median monthly rent for a e Street’s falling fortunes caused Charles Schumer, the Senate minority try continues to be a major contributor city apartment was $395. ere weren’t a nearly $1 billion budget shortfall the leader, likely would come to the indus-
BUCK ENNIS, AP IMAGES to state and city tax revenues, as well as many hedge funds, and private equity following year in Albany, but ultimately try’s aide as he did a decade ago. ■
6 | CRAIN’S NEW YORK BUSINESS | OCTOBER 23, 2017
P006_CN_20171023.indd 6 10/20/17 5:59 PM Make your office space an asset instead of a liability
ith the coworking trend growing administrative support. These are features that are valued Look for a coworking space with a technology infrastructure rapidly, shared office space is not by our target clients—sophisticated, high-energy that protects your privacy, too. We recommend that compa- entrepreneurs and businesses. nies look for a space with fully redundant technology where only for solo professionals and W they are put on their own VLAN’s to which all of their wireless startups anymore. Many big companies are devices are mapped back to ensure top security. Crain’s: What would you tell people who are now situating their teams in New York City’s concerned about a move to a coworking space because of shared areas and the possibility of noise many coworking spaces, whether to establish Crain’s: For companies that need a lot of or disruption? What can their employers do to bandwidth, one concern with any office space is a satellite office, create a home base while alleviate these concerns? whether the technology infrastructure will support transitioning to permanent space, or inspire their team’s needs. How are coworking spaces mak- ing sure they can meet tenants’ technology needs, more creativity by immersing their teams in James Kleeman: Finding the right office space to fit the culture of innovation many coworking your team’s work style takes time. When you’re shopping particularly when a space is very full? for a space, see if there’s an opportunity for you to work spaces foster. out of the space for the day before committing to a lease. James Kleeman: The best coworking spaces offer a Each office service provider has its own niche culture, technology platform that can sustain occupancy of every For insight on how to take advantage of the creating an environment that caters to its target tenants. office and every seat, accommodating the needs of each benefits of coworking and how to choose the Make sure you’re comfortable in whatever environment a business. They can support the needs of every industry right space, Crain’s Custom recently spoke with provider has designed when you work there for a day. of every size from across the globe. James Kleeman, who serves as the director of In the ideal space, your company will be able to get up Crain’s: In many industries, companies face full-service office suite provider Emerge212. increasing pressure to keep real estate costs down. and running right away because of features such as top With his master’s degree in real estate from NYU Can coworking spaces help them lower their over- redundant fiber connectivity, firewalls, private servers, along with a graduate certificate in hospitality, head—and how does the cost of leasing traditional the cloud, on-site storage and co-location capabilities. James has been with Emerge212 since 2005 space compare with leasing coworking space? You should be able to store any equipment you bring in securely in a state-of-the-art server room with individual coming from Related Companies. He directs racks of all sizes. Your team should be able to access James Kleeman: The top three expenses of most the business and its brand, ensuring the best of businesses are talent, legal and office space. In a tra- this equipment privately with a unique passcode access, hospitality and design, which is testament to his ditional office space you are betting on future growth. 24-hours a day, 365 day-a-year. passion and commitment to bringing the finest Sometimes you have to pay for space you don’t actually of both disciplines to office space. need yet to make sure you don’t outgrow it too quickly. Although your space may be temporary, your business is Beyond the landlord’s rent per square foot, you may ongoing, and a great coworking space will provide the also have to pay for a litany of other expenses, such as support you need around the clock. common area maintenance fees, janitorial, electric, heat, technology infrastructure leases and license agreements, support staff and many more.
The beauty of the coworking/ full-service office space providers is that a business only has to pay for additional spaces and services as needed. Your office provider should help you adjust your space as your business grows, allowing you to preserve cash you need to invest in other areas of the business.
James Kleeman Crain’s: For companies facing Director, Emerge212 intense competitive pressure, keeping their ideas and trade secrets safe is imperative. How Crain’s: Many companies that consider leasing co- are coworking spaces ensuring working space for an extended period want to make that their tenants have the sure their team can function just as efficiently as in privacy they need? a traditional office space. What types of amenities should they look for? James Kleeman: Many people enjoy having communal spaces James Kleeman: It’s important to consider how your and networking opportunities with company best operates and what you and your team like-minded entrepreneurs but value before you start your search. For instance, you require their office environment to may need available space to host networking events provide more private areas to speak or schmooze with your clients. For another company, it confidentially or collaborate on may be critical that there is a trained and seasoned tech private financial data or intellectual support team onsite or readily available. property, etc. Make sure you choose the space that has the right value If that’s the case for you, look for a proposition for you. Coworking spaces can range from space that offers private rooms. For minimalistic, membership-type models where a member instance, at Emerge212, we offer has access to available desk space on demand and a several small and large conference coffee urn, all the way to full-service environments that rooms and break out spaces for offer dedicated office suites and customized infrastructure. collaborative meetings, as well as In a full-service environment like ours, the space itself may our Serenity Lounge, which has be an amenity, offering features such as innovative design, Beatnik noise-cancelling chairs. state-of-the-art technology and seasoned staff and
An Advertising Supplement to Crain’s New York Business
Ask_The_Expert_Emerge2.indd 1 10/20/17 2:54 PM AGENDA
State beefed up Airbnb fines, but city struggles to collect Loopholes, bureaucracy add to more than $1B left uncollected BY JOE ANUTA
hen Gov. Andrew Inspectors also ned owners for build- A trial o cer Cuomo signed a bill ing-code violations, like missing sprin- ordered the owners late last year to stop klers and improper egress routes. Few to fork over more Airbnb hosts from owners have paid up. than $45,000. As of turningW their apartments into de facto Inspectors concentrated early e orts last week, they had hotels, bigger nes were supposed to on a series of Manhattan properties not done so, accord- deter a practice elected o cials argued owned by Hank Freid, who racked ing to court records. took much-needed apartments o the up hundreds of thousands of dollars’ ousands owed by rental market. worth of so-called Environmental the owner of 622 W. But more than six months a er Control Board nes, which are adjudi- 136th St. and more city inspectors’ rst round of enforce- cated through an obscure city tribunal. than $60,000 owed ROOM FOR IMPROVEMENT: Owners of some transient dwellings ment, the de Blasio administration has Many of the infractions simply haven’t by 454 E. 47th St. dispute city nes or just don’t pay them. collected only a fraction of the issued been processed yet, and hearings aren’t similarly have gone nes, which added scheduled until later unpaid. up to hundreds of this year and early up the violations. ey still can secure thousands of dollars, Recalcitrant next—at least nine Delay and don’t pay building permits, and the nes simply according to a Crain’s landlords have little months a er the vio- A big problem is that the city’s pro- vanish a er eight years, when the stat- analysis. In large part, lations were issued. cess for collecting ECB and similar nes ute of limitations kicks in. the trouble is rooted in incentive to pay up. Meanwhile, Freid is inadequate. As of last year, there were e handful of Airbnb violators who the city’s long-awed is suing the city on more than $1 billion worth of violations have paid up have tended to be small collection system, Some apparently the grounds that he outstanding, and more nes are going owners renting out a few rooms, not which gives landlords are waiting for the is allowed to legally uncollected every year. City Council- the operators of illegal hotels that were little reason to pay up operate his properties man Ben Kallos penned legislation supposed to be in the city’s crosshairs. and could ultimately statute of limitations as transient dwellings, that was supposed to give the city more e mayor’s o ce did say it has had defang e orts to curb to kick in. further tying up the power to collect, but it hasn’t worked. better luck of late. Of the $9 million illegal home sharing. violations. “We are not seeing the money,” in nes issued in 2016 and so far this Between November e owner of Kallos said, “and thus we are not seeing year, roughly $2.5 million has been col- and May, the mayor’s Hotel 31 is also a change in behavior.” lected. “We are calling out bad actors O ce of Special Enforcement targeted locked in litigation. e court date for Unless landlords are selling or re - and aggressively pursuing our cases in 16 properties in its rst wave of inspec- its nearly $50,000 worth of ECB nes nancing—which would prompt lend- court,” a spokesman said in a statement. tions, issuing violations for operat- is Feb. 18. e Hotel St. James, on the ers to force them to pay outstanding “Justice isn’t served in a day, but it’s on ing an apartment as a hotel room. other hand, had its hearing last month. nes—they have little incentive to clear our side.” ■
Push for more height limits, Bankruptcy Baron’s old this time across entire UES building could net $3M Community Board 8 hopes to launch major rezoning Rehabbed Brooklyn property back on the market
MANHATTAN COMMUNITY Board 8 Any projects that complete their foun- AS THE REAL ESTATE empire of auctions. A er renovating the prop- is seeking to cap new buildings’ height dation in the meantime would not James McGown imploded last year, erty to increase its usable square at 210 feet, or roughly 20 stories, across be subject to the proposed zoning a Manhattan investment rm recog- footage, the rm is putting it back on the entire Upper East Side, an e ort changes. nized an opportunity the market for that is part of a recent wave “We are getting ready to that could now pay $7.8 million— of community backlash ght,” said City Councilman big dividends. which could net against high-rise apartment Ben Kallos, a critic of resi- A Brooklyn land- a better than towers. dential skyscrapers who sup- lord, McGown was 50% pro t. e community board ports the board’s proposal dubbed the Bank- e building is set to hold a hearing this and is working to advance it ruptcy Baron for his sits on the corner week about a request that from idea to reality. He has seven trips to the of Sackett Street building heights be capped reason to be hopeful. Chapter 11 courts. and includes two along First, Second, ird e City Planning Com- As part of the last oors of retail and York avenues, bring- mission held a hearing go-round, a judge below a pair of ing them in line with other last week on another pro- ordered several of three-bedroom neighborhood thorough- KALLOS posal in Kallos’ district that his properties to be apartments that fares including Park and would limit heights in Sut- sold at auction. All rent for more OFF THE BLOCK: Less than a year after Fi h avenues. ton Place. In that case, the proposal told, the handful of auction, 320 Court St. is for sale. than $4,000 e board’s move is still prelimi- was initiated to try to stop a single buildings fetched apiece. nary: Someone still has to plunk down tower that was projected to rise 800 $22 million, enough “We are seeing the cash to hire zoning experts who feet along East 58th Street. Although to cover McGown’s debts. One of tremendous de mand in the market for would draw up an actual application, it is unclear how successful that e ort those properties now stands to make core retail assets in prime Brooklyn a process that can take a year or more. will be, it was a seen as a positive sign a tidy pro t for its buyer. corridors,” said Adam Hess, a partner If and when an application is com- for activists looking to stymie similar Urban Standard Capital purchased at TerraCRG, which is handling the plete, it would then have to undergo large-scale projects in other parts of the 3-story building at 320 Court St. sale. “320 Court St. checks all those
PROPERTY SHARK, BOOKINGS.COM a seven-month public review process. the city. — J.A. for nearly $5 million in one of the boxes.” — J.A.
8 | CRAIN’S NEW YORK BUSINESS | OCTOBER 23, 2017
P008_CN_20171023.indd 8 10/20/17 7:40 PM REAL ESTATE
TUCKED AWAY: The New law looks to add some fth- oor garden snap and crackle to city’s POPS at Trump Tower Privately owned public spaces, like Trump Tower’s garden, face inspections BY AARON ELSTEIN
rump Tow- le complaints. While um inside the old IBM and design at Harvard er’s public many POPS consist of no Building at the corner University, said he hoped garden is one more than a few tables of Madison Avenue and the new law would en- awareness that such help make people more of Midtown’s and metal chairs, some East 56th Street. courage landlords to spaces exist for every- aware of the public realm Tbest-kept secrets, in are real gems, most no- Jerold Kayden, a pro- make POPS more at- one’s enjoyment. to which they are enti-
part because it is hard tably the tree-lined atri- fessor of urban planning tractive while boosting “Hopefully this will tled,” Kayden said. ■ BUCK ENNIS for visitors to nd signs directing them to it on the building’s h oor. But the garden’s splen- did isolation may come to an end. A new law re- quiring Donald Trump and other city landlords to better publicize and care for their private- ly owned public spaces took e ect Oct. 20. POPS, as the spac- Ups and downs es are called, include gardens, lobbies, plazas and arcades that devel- have their place ... opers began creating in the early 1960s in return for the right to build just not in your bigger buildings. For instance, in exchange for creating the garden health plan. and public space in the lobby, Trump got a spe- cial permit to add about 200,000 square feet to his agship tower when he was building it in the early 1980s. at space is now worth an estimat- ed $300 million. But a report this year by Comptroller Scott Stringer found that more than half of the city’s 333 POPS failed to provide required public Wall Street’s known for volatility. amenities. In some cas- But when it comes to health plans, es, space was rented to restaurants or reserved you can do without the wild ride. for building tenants. In another exam- With our 30-year track record serving New York businesses and our ple involving Trump 96% member service satisfaction1 rating, Oxford2 continues to Tower, a lobby bench bring a steady presence and strong commitment to the New York market. was replaced with a ki- osk selling presidential And now, New York employers can find savings opportunities on many campaign merchandise. Oxford plans, with some of the most competitive rates in the market Trump Tower was ned available through our Metro Network products. $14,000 for that infrac- tion, but the comptroller Tell volatility to hit the street — make Oxford the health plan you count on. found that violators of POPS regulations were seldom penalized. (e Visit uhc.com/OxfordStability or call your broker. Ask about our networks: bench has since been put back in the lobby.) Freedom Liberty Metro City building o- cials will now begin in- specting POPS at least every three years and 1 UnitedHealthcare Service Statistics average for New York, New Jersey and Connecticut Oxford plan members from Jan. 1, 2016, through Dec. 31, 2016, based upon United Experience Surveys. Source: Internal Consumer and Customer Call Center Metrics. levy nes for violations. 2 Oxford HMO products are underwritten by Oxford Health Plans (NY), Inc. Oxford insurance products are underwritten by Oxford In addition, landlords Health Insurance, Inc. must install signs identi- MT-1139927.0 8/17 ©2017 Oxford Health Plans LLC. All rights reserved. 17-4569 NY-17-446 fying POPS, their hours and where visitors can
OCTOBER 23, 2017 | CRAIN’S NEW YORK BUSINESS | 9
P009_CN_20171023.indd 9 10/20/17 3:09 PM AGENDA ASKED & ANSWERED NONPROFITS INTERVIEW BY JUDITH MESSINA
MERIDITH MASKARA GIRL SCOUTS OF GREATER NEW YORK
n Oct. 11 the Boy Scouts of America announced it This is not an would open its membership to girls. It was a mere three months after Meridith Maskara became CEO “after-school of the Girl Scouts of Greater New York. She runs the program; Oonly urban council in the nation—and the most diverse—serving this is a 28,000 girls across every neighborhood in the ve boroughs, way of life including 17 homeless shelters. Maskara was previously COO.
What is your reaction to the Boy Scouts’ announcement? We are taking it as an opportunity to amp up our conversation about our brand. We are the second-most-respected brand in the world, and after 105 years, we know what works. If a girl spends three years in our program, she achieves a higher educational lev- el than girls who haven’t and higher pay levels or positions. This is not an after-school program; this is a way of life—a connector and grounder. We are girl-led, girl-tested, girl-approved.
Are you concerned about losing girls to the Boy Scouts? Here in New York, we have so many marketplace competitors: DOSSIER youth organizations, other girl-focused organizations, after-school programs, athletics. It’s just one more. Girl Scouts has always WHO SHE IS had a very open, inclusive environment—all religions, races, eth- CEO, Girl Scouts of nicities, sexualities. That’s an advantage, especially in New York. Greater New York 2016 REVENUE What are the challenges of being an urban council? $6,015,655 We have the poorest and wealthiest ZIP codes in the country. The EMPLOYEES 50 full-time, challenge is making sure we are delivering to all of them. We also 8,000 volunteers have logistical and space issues because we don’t have gigantic community centers with parking lots. On the ip side, our girls can SALARY $160,000 hop on the subway and interview Malala Yousafzai at the United AGE 44 Nations or hear Michelle Obama speak at the Apollo Theater. GREW UP Sullivan Harbor, Maine You also take girls camping? RESIDES Sunnyside, One time when we got off the bus and started hiking, one girl Queens said, “I’ve never not walked on pavement before.” She was 10 EDUCATION Certi cate years old and didn’t know what it felt like to walk on roots and in musical theater, Ameri- grass or look up at the stars. We have a different responsibility can Musical and Dramat- for environmental leadership than any other council does. ic Academy; attended Marymount Manhattan What are you doing to help girls achieve success in science and math? College but dropped out for We just launched Breaking the Code, a yearlong after-school nancial reasons. “That’s a program that introduces middle school girls to coding and whole other story!” presentational skills. The Girl Scout Leadership Institute is an MEMBERSHIP GOALS intensive 15-month program during which the girls spend three “There are 600,000 girls in weeks in teams developing an app that they pitch to investors. the city between ages 5 and By expanding into STEM and STEAM, we are opening the doors to 17. We serve 28,000 of them. I would be ecstatic to get to 35,000 in the their future. next couple of years. I know we can.” Will the Girl Scouts always sell cookies? THE GIRLS’ CLUB “We have 59 million alums. Fifty percent of women The Cookie Executive Committee, which consists of the 50-plus business leaders in the United States, top-selling cookie girls, convenes four times a year to decide how 80% of women tech leaders, 70% of U.S. to handle the business of cookie sales. Around that table, we’ve women senators and all three women got erce and feisty future CFOs and CEOs. They are able to say secretaries of state were Girl Scouts.” “I achieved a leadership skill today.” COOKIE SALES PITCH A third-gen- eration Girl Scout, Maskara had a 15-year With $1 million from the city, you expanded Troop 6000 from one home- career as a merchandiser for shows like Rent less shelter to 17 this month. What are your goals for the troop? and Phantom of the Opera before rejoining the We have a three-year commitment from the Department of Home- organization. “I was able to use all the pieces less Services. For us, it’s a lifetime commitment. There are 8,000 of what I had learned—inventory manage- girls between 5 and 17 in shelters. We reached 500 girls, and ment, scale, selling techniques—in my work.” we’ll double that this year, but we have so many others to serve. BUCK ENNIS Are your ve daughters all Girl Scouts? The three oldest are, and the other two are on their way. ■
10 | CRAIN’S NEW YORK BUSINESS | OCTOBER 23, 2017
P010_CN_20171023.indd 10 10/20/17 4:18 PM AGENDA VIEWPOINTS
Tech will back up city when Wall Street crashes again The fast-growing, high-paying sector emerges as an anchor
NEW YORK CITY’S tech good news. Understanding why starts and they won’t make up the losses if People who make it ecosystem is head and with Wall Street. Wall Street crashes again. shoulders above those For three decades the city’s econ- Tech, however, could step up. Its big in tech here could of its rivals on the East omy rose and fell (o en a lot) in lock- average salary is the second highest of become important Coast, according to a step with what was happening on Wall any sector—Wall Street’s is still No. 1, report last week from Street. When the Street did at around $400,000 (more than philanthropists, the Association for a well, it created thousands of 10% of jobs in the securities though that has not Better New York and lucrative jobs and paid ever- % industry are tech-related). GREG DAVID the Partnership for higher salaries and bonuses When those fast-growing com- happened yet New York City. that li ed the city’s economy panies on Crain’s list go pub- 57RISE in NYC No fewer than 43 of the 50 businesses and lled state and city gov- lic or are acquired, the stock on the Crain’s list of fastest-growing ernment co ers. e peo- tech jobs in the options of their founders and companies published this month are ple who made it big on Wall past six years employees make people rich. 2001, when the tech boom turned out in tech, the New York Tech and Digital Street gave large sums to It can keep the economy aoat to be a bubble and not only eliminated Media Association proudly pointed out. Central Park (John Paulson), and tax revenues stable. three-quarters of the industry in New Tech employment in the city has the New York Public Library Someday the people who York but dragged Wall Street down grown by 57% in the past six years, (Steve Schwarzman) and % make it really big in tech here with it. Tech boosters say things will be and the average salary for those jobs social-service organizations could become important di erent this time because the industry reached a record $147,300 last year, (Paul Tudor Jones). 11SHARE of Wall philanthropists, though not is more diverse, its products and ser- according to a report last month from When Wall Street crashed, Street jobs that much has happened on that vices have become indispensable, and the state comptroller. at is nearly so did the economy. Tax rev- are tech-related score yet. Mark Zuckerberg it is led by more experienced executives double the average city salary, and tech enues plunged. Philanthropy and Bill Gates are the lead- who know what they are doing. We all pay has increased three times faster contracted. Growth in such ing tech givers in New York should hope they are right. ■ than for other jobs since 2010, the sectors as tourism, retail, education and for the time being. report noted. health care has diversi ed the economy, Something could go wrong with GREG DAVID blogs regularly at Such numbers are obviously all but these industries don’t pay that well this rosy scenario, of course, as in CrainsNewYork.com.
Fixing to stay in business— selling one screw at a time How a small hardware store survives the big-boxes BY STEVE HINDY
his is a tribute to my local an hour at Restoration Hardware in hardware store in Brooklyn, Midtown explaining my problem to a Leopoldi Hardware, and to harried oor clerk and then a friend- all the other stores like it that ly but unhelpful manager, I concluded Thave survived the New York City inva- that replacing that little screw would be sion of Lowe’s and e Home Depot. like obtaining special treatment from Leopoldi’s, on Fi h Avenue in Park the IRS. Slope, occupies about 2,500 square feet, I went to Leopoldi’s. Joe spent half a fraction of the tens of thousands of an hour trying every set screw in the square feet occupied by its mammoth, store’s inventory. No luck. Restoration nationally advertised competitors. But it Hardware’s set screw was proprietary. is rare that I cannot nd exactly what I Joe sent me to Greschlers Hardware, am looking for there. 12 blocks away, where an obliging clerk Two narrow, jam-packed aisles lead drilled a new sha for a standard set from the front door to the counter in screw. Cost: $4.93. the back, where the brothers Leopol- e Leopoldi brothers take care of di—Joe, Robert and Peter—sell tools, me. ey sell me the four screws I need, nuts and bolts, light bulbs, electrical not a box of 200, of which I will never components—well, everything a hard- use the other 196. LIVE LONG AND PROSPER: Peter, Robert, Florence and Joe Leopoldi have kept their ware store should. I can walk to Leopoldi’s for 98% family business going as the retail landscape changed around them. Leopoldi’s is stocked with an intelli- of my hardware needs. It is an inti- gent inventory that weekend xers like mate and friendly space. Joe Sr., now myself have been seeking for decades. deceased, bought the business in sionally get a dozen 60-watt light bulbs. the big-box invasion. But most of all, the brothers dispense 1966. His widow, Florence, is o en ere are helpful big-box employees “We were scared when the city ap- 51 years of wisdom. at the store. e Leopoldi boys—col- but not many. Mostly they refer you proved Lowe’s and Home Depot,” said Example: A contractor stripped the lege grads—and their employees are to other departments or point to, say, Joe. “We started opening on Sundays set screw on a pewter- nish Resto- good-humored and accommodating. I Aisle 18 and leave you to explore 100 for the rst time. But they didn’t hurt ration Hardware toilet-paper dispens- meet neighbors in the crowded aisles, yards of stu . us too much. Our business has been er at my house. I discovered this long where everyone steps aside or leans ere were once a lot more hard- very steady.” ■ a er paying the contractor. e loose back to allow others to pass. ware stores in Park Slope. Peter recalls rack tilted to one side and jiggled when I still go to Lowe’s to pick up pro- seven within a mile of Leopoldi’s. But Steve Hindy is co-founder and chair- used. It drove me nuts. A er spending pane tanks for my gas grill, and I occa- those competitors closed long before man of Brooklyn Brewery.
OCTOBER 23, 2017 | CRAIN’S NEW YORK BUSINESS | 11
P011_CN_20171023.indd 11 10/20/17 3:01 PM HEE_DPS_10.23issue_final.pdf 1 10/19/2017 12:30:59 PM
As New Yorkers conclude their annual celebration of National Hispanic Heritage Month, Crain’s New York Business’ custom division celebrated with a fitting finale. We hosted the second annual Hispanic Executive and Entrepreneur Awards with a luncheon on October 13 at the New York Athletic Club on Central Park South. The program recognizes the distinguished careers of truly inspirational leaders in New York City. Congratulations again to the honorees, who consist of executives, entrepreneurs, community leaders, Latinos to watch and technology innovators. We are proud to have you in our community. ¡Felicitaciones!
Lynda Baquero, Consumer Reporter, NBC 4 New York, delivers her keynote speech
Jesus Aguais, Community Leader finalist and Executive Carlos Suarez, Founder, Casa Nela, winner Greg Jones, Chief Diversity Ocer, United Airlines, Director, Founder, AID for AIDS International and Jose of Crain’s Custom HEE gives the introductory remarks Meneses Entrepreneur Award
José Calderón, President, Hispanic Top: Arthur Kennedy, Maritza Kennedy, Federation, winner of Crain’s Custom HEE Francesca Kennedy, Latinos to Watch finalist and Community Leader Award Founder, CEO, Ix Style
Top right: Ellie Nave, Goldman Sachs; Arnie Albornoz, Presenting Sponsor: Goldman Sachs; Ruth Dieguez, Hunter College
Right: Edrizio De La Cruz, Tech Innovators finalist and Co-founder, CEO, Regalii and Noelia Martinez
Bronze Sponsor:
CN018406_lt.indd 1 10/19/17 12:47 PM HEE_DPS_10.23issue_final.pdf 2 10/19/2017 12:31:06 PM
Left to right: Entrepreneur winner Carlos Suarez, Casa Nela; Latinos to Watch winner Rebecca Esguerra Garcia, CoderDojo NYC; Community Leader finalist Jesus Aguais, AID for AIDS International; keynote Lynda Baquero, NBC 4 New York; Jill Kaplan, VP & Publisher, Crain's New York Business; Community Leader winner José Calderón, Hispanic Federation; Community Leader finalist Jessica Gonzáles-Rojas, National Latina Institute for Reproductive Health; Latinos to Watch finalist Francesca Kennedy, Ix Style; Technology Innovators finalist Edrizio De La Cruz, Regalii and Technology Innovators Winner, Michael Montero, Resy Network, Inc.
Rebecca Esguerra Garcia, Co-founder, Brenda Gill, Chris Reid, Morgan Stanley; Kecia Clarke, Teresa Gonzalez; Mariela Estrella, Brooklyn Chamber CoderDojo NYC, winner of Crain’s Custom Morgan Stanley of Commerce; Jason Otano HEE Latinos to Watch Award
Michael Montero, Co-founder and Chief Technology Ocer, Resy Network, Inc., Top: Eric Di Monte, Univision; Fleriser Bello, Fleriser winner of Crain’s Custom HEE Tech Bello; NBC 4 New York's Lynda Baquero and Doreen Innovators Award Geiger Top left: Elianne Ramos; Ramona Cedeno, FiBrick Financial Services; Jessica González-Rojas, Community Leader finalist and Executive Director, Strategic Partner: National Latina Institute for Reproductive Health Photography by: Left: Kyle Giunta of Sprinklr, Inc., accepts the Executive Ron Jautz Award on behalf of Carlos Dominguez, President and COO, Sprinklr, Inc. and Jill Kaplan, VP & Publisher, Crain’s New York Business
VE S S EME O S E O S ESS
CN018406_rt.indd 1 10/19/17 12:48 PM POLITICS | DONATIONS Labor Dominates City TRENDS DONATION LEADERS HIZZONER HIKE Political Spending Funding for Mayor Bill de Blasio tops candi- In 2017 alone, donations to the incumbent dates in this election cycle. Ranking second mayor have more than tripled those to con- Hotel Trades, other unions vie for in uence on council was not enough for real estate exec Paul servative challengers. Plus, de Blasio took in Massey, who dropped out of the race in June. millions earlier in his term. BY WILL BREDDERMAN AND GERALD SCHIFMAN Amount raised, in millions $5,256,676 2014 2015 2016 2017 $5.3 nions have been the city’s big political spenders the past few years— with the compact but powerful hotel workers leading the pack. A Crain’s analysis of Campaign Finance Board records from late 2013 to mid-September 2017 found the Hotel Trades Council donat- $3.1 Ued the most money directly to campaigns and also ran the largest independent $2.3 expenditure operation. Labor groups lled out nearly all the rest of the rankings. Hotel Trades sank $360,049 into mailers supporting six candidates for City $1.2 $909,184 Council. Insiders called it part of an e ort to see Manhattan Councilman Corey $1.0 $734,294 Johnson elected as speaker. It also donated $218,850 directly to an array of candi- dates, mainly contenders for open seats and incumbents fending o challenges. BILL PAUL SCOTT RUBEN MELINDA BILL BO NICOLE Besides its goal of elevating Johnson, the union has DE BLASIO MASSEY STRINGER DIAZ JR. KATZ DE BLASIO DIETL MALLIOTAKIS pushed the city to crack down on illegal Airbnb rentals and limit the construction of nonunion hotels and the SOURCE: New York City Campaign Finance Board NOTE: Donation data spans from Nov. 18, 2013 to Sept. 18, 2017 conversion of hotels to condos and rentals. e second-largest spender was New Yorkers for Clean, Livable and Safe Streets, which seeks to stop Central Park carriage horses. NYCLASS poured $231,456 THE LIST TOP POLITICAL DONORS into mailers backing pro-animal-rights candidates. e Patrolmen’s Benevolent Association spent Ranked by contributions in the 2017 city election cycle COREY JOHNSON $128,329 to help three assemblymen with police-union ties seeking council seats and to re-elect cop-friendly Queens Councilman Peter Koo. It put an additional $81,000 into candidates’ co ers. e next council will likely re-exam- ine police-reform legislation that would make cops notify civilians of their right to refuse a warrantless search and hand business cards to those who consent to one. e PBA focused its contributions on incumbents and aspirants in
conservative areas. Curiously it also gave $1,500 to Bronx Councilman Ritchie Torres, a supporter of the reforms. District Council 37, which represents city clerical PETER KOO sta , gave $208,933 to council candidates through its var- ious a liates. Like many public employee unions, DC 37 bene ted when Mayor Bill de Blasio expanded head count. It is negotiating a second contract with the mayor. Records also reect an anti–de Blasio ad campaign by the Transport Workers Union of America and support of a TWU retiree’s failed bid. e transit workers spent $206,075, including $69,300 in gis to local politicians. Health care workers union 1199SEIU, whose 400,000 members are a dozen times more than Hotel Trades’ 32,000, has seen its political operation fade to a shadow of what it was in 2013, insiders said, but the union has strong RITCHIE TORRES ties to de Blasio and the council’s Progressive Caucus, and gave heavily to members whose districts include or abut large hospitals. Its political outlay for this cycle came to $168,721. Next was the New York State Laborers’ PAC, which dispensed $160,450 over the past four years. e Laborers were part of the Building and Construction Trades Council of Greater New York’s push to enhance safety standards on job sites, especially for nonunion workers. e measure had overwhelming support in the council but faced opposition from real estate and construction interests. e de Blasio administration raised fears that it could stunt a ordable-housing construction but backed the proposal last month. Other building trades unions to open their wallets were the Mason Tenders District Council ($133,875), Metallic Lathers & Reinforcing Ironworkers Lo- cal 46 ($102,300), Steam tters Local 638 ($70,971) and the International Brotherhood of Electrical Workers ($67,350). Besides having a stake in the construction-safety bill, IBEW’s members have been locked in a bitter strike much of this year with Charter Communications, which owns Spectrum cable. Charter’s franchise agreements will come before the mayor and the council in the next four years and could meet resistance as a result of the labor stoppage. Building services union 32BJ SEIU has doled out $156,259 to politicians since the end of 2013. Its 163,000 members make it inuential in the city, and it has backed de Blasio’s housing policies in hopes of generating maintenance and custodian jobs. Many of the projects and local zoning changes the mayor has pushed, however, have run into opposition in the council. Two nonunion entities cracked the top 20 spenders: Republican Paul Massey Brad- and his wife pumped $94,944 into his scrapped mayoral bid, and operative
GETTY IMAGES, WIKIPEDIA, NYCCOUNCIL.GOV/FLICKR ley Tusk ran the anti–de Blasio ad campaign New York City Deserves Better. ■
14 | CRAIN’S NEW YORK BUSINESS | OCTOBER 23, 2017
P014_CN_20171023.indd 14 10/20/17 4:16 PM POLITICS | THE CHALLENGER
A WOMAN APART Republican mayoral candidate Nicole Malliotakis tries to make a name for herself—citywide and beyond—as her party’s leaders (even in her own borough) block her way BY WILL BREDDERMAN
ssemblywoman Nicole Malliotakis An Oct. 5 Quinnipiac poll showed her trailing de and minorities. Finding a message that appeals to began her day Oct. 14 far from her Blasio, 61% to 17%, among likely voters. But her bid those diverse constituencies has been a core chal- Staten Island turf, in the narrow store- has always been more about opening up her politi- lenge of her campaign. front headquarters of the Queens GOP, cal future. Like Ulrich, she is viewed by Republican Leaving a South Richmond Hill celebration of addressing a dozen fellow Republicans. insiders as a potential candidate for lieutenant gover- Diwali, the Hindu festival of lights, Malliotakis said A e lawmaker laid out her case against Mayor nor next year, a downstate voice to balance an upstate she decided to challenge de Blasio a er an appearance Bill de Blasio in a speech similar to one she gave to gure atop the GOP ticket. Should she capture 30% on WNYC’s Brian Lehrer Show. at March 29 inter- the Association for a Better New York eight days of the vote Nov. 7—roughly what a Republican needs view was one of the last times she vented the ery before and would later repeat virtually verbatim to in the ve boroughs to win statewide—she would be rhetoric that won her a top speaking spot as a “ris- a Crain’s reporter in a police SUV en route to a Bay a top prospect for the No. 2 slot next fall. ing star” at the annual Conservative Political Action Ridge event. Another rendition came at a Chinese Outspoken and ambitious, Malliotakis has spent Conference in 2013. She also made the American community dinner in Flushing at the denouement her public life defying in uential men: former Conservative Union’s Top 10 Under 40 list that year. of the day. Assembly Speaker Sheldon Silver, Staten Island e radio segment highlighted her extreme ideo- “We are going to bring common logical dierences with de Blasio, as sense back to City Hall,” Malliotakis she urged President Donald Trump said. “ e working class has been CONFINED TO A POWERLESS MINORITY to follow through on his threat to abused by Mayor de Blasio, hav- AND STYMIED BY HER OWN PARTY IN yank funding from sanctuary cit- ing more of their money spent with ies such as New York, which do no results. HER ATTEMPTS FOR HIGHER OFFICE, not routinely refer undocumented “We’re going to have a mayor that immigrants to federal authorities. is going to restore quality of life, bring MALLIOTAKIS IS A POLITICAL OUTSIDER “I’m happy that the administra- our infrastructure into the 21st cen- tion is keeping its promises to the tury, ensure that the homeless crisis American people and really crack- is addressed, improve our schools and make them Republican leaders and now Ulrich and de Blasio. ing down on the sanctuary city policies that we’re safe and, nally, work with the governor to x our ey in turn have marginalized her. Con ned to seeing not just in New York City but across the broken subways.” the Assembly’s powerless minority and stymied by nation,” she said before rattling o a list of gruesome e name of the morning’s event—a Republican her own party in her attempts at higher oce, she crimes committed by undocumented immigrants. “I Unity Breakfast—was somewhat ironic. Council- is a political outsider. And her improbable run for don’t want to lose the money. I want the mayor to man Eric Ulrich, arguably the most powerful and mayor looks like nothing so much as an attempt to comply with the law. And if the federal government important gure in the Queens GOP, arrived a er save what once seemed a promising career. needs to withhold that money to force their hand, Malliotakis le , as he has endorsed independent they need to do it. And, quite frankly, this mayor candidate Bo Dietl for mayor over the assembly- A rising Republican spends so much money on so much nonsense.” woman, his own party’s nominee. (Ulrich himself Her gambit might still succeed. But to hit that ose comments, she said, triggered a deluge of had irted with a run against de Blasio.) 30% threshold, she must reach the white outer- calls and letters urging her to challenge de Blasio
BUCK ENNIS Malliotakis’ mayoral run is the ultimate long shot. borough GOP base and moderate Manhattanites CONTINUED ON PAGE 16
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BUCK ENNIS 16 POLITICS |
CRAIN’S NEWYORKBUSINESS female candidate with credentials.” nationalthe Republican Party has to an take: ethnic gress. “I she represents think clearly direction the longtime supported who friend her bid for- Con Kassar, Brooklyn Party Conservative chairman, a ground get something more? and term-limited to eight years. she inan minority— would be overwhelmed still and achancea better salary to pass legislation, but should he leave House. the e City o ered Council cilman Joseph Borelli next in line for Donovan’s seat Boroughsucceed President James Oddo, - with Coun City Councilman Steven Matteo appeared up teed to aroundAll her, GOP the machine’s moved: wheels bills and meager funding for sta and o ce space. tee appointments, lack of opportunity to advance dominated state Assembly, with its pitiful commit- an indenite stint as a Republican Democratic- in the less line. faithful to party the overpassed Rubio for acandidate older, whiter and But as happened with her and Donovan, GOP the chance at a national role again within reach. seemed New Hampshire of ahead its fateful primary, and the Malliotakis stumped for golden seeming the boy in immigrants and uent inconservativepoints. talking nation. He was young, photogenic, Latino, to born Republicans to appeal to an increasingly diverse Cubanimmigrants, Rubio o ered a chance for establishment preferred Trump. ofpaign Marco Florida Sen. Rubio. eStaten Island New the Malliotakis headed York presidentialcam inhis placeLanza andyear Malliotakis hers. in Last Manhattan prosecutor Joan Illuzzi forD.A., leaving seat. But GOP the leadership nominated little-known eligible forbe to run Lanza’s South Shore legislative registration to her parents’ house, where she would van’s prosecutor job, Malliotakis changed her voter Andrew emerged Lanza as acontender for Dono- wonwho a May When election. state special Sen. line toparty Daniel Donovan, attorney, district then Rep. Michael Grimm and handed the organization her rejected bid to replace next year Staten the Island Republican for to run takis lieutenant governor. e County Moss Sheri Chris over Mallio- leaders in2014had chosen Chemung from Republican acareer cul-de-sac. mayoral has created run an route escape future bid for o ce on GOP the line. said, could hurtdle, observers her ina Trump. moves ose toward mid- the votes against gay marriage and for conservatism, publicly regretting her has forced her to equivocate on her onpaign “tra c, transit and trash.” It rabble-rouser has centered her cam- justseems as unnatural, as talented the Jewish voters. Malliotakis’ contortion Irish, Italian, Russian and Orthodox ing anxieties the of outer-borough crat—made an uneasy attempt at- ril Lhota—a solutions-minded techno- to GOP 2013, when nominee Joseph city management. It’s asharp contrast of lower property taxes and better ing populist provocation for aplatform measured, milquetoast campaign,- trad herself. But since she then a has run she unseated Democratic Assemblywoman Janele Republican organization backed Malliotakis when ofherown A party “She represents avision for future,” the said Jerry Shouldn’t someone of and her gis family back - At 36,Malliotakis was facing prospect bleak the of assemblywoman, the Like of Greekand achild But along challenges, with those her It wasn’t always like e this. Staten Island
| THE CHALLENGER
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OCT OBER 23,2017 Malliotakis’ future. Running hasopened LOOKING AHEAD: -
the minoritythe bills to and small discuss arrange for and counsel sometimes with meet members will of Assemblythe oor for avote. But speaker’s the sta a veteran sta er capital. inthe ing as he could get inthat chamber,” Kassar, recalled member of minority, the he was as cold and- as chill made his distaste for newcomer the known. money into incumbent’s the campaign co ers, he that Silver steered large sums of Democratic Party Malliotakis ousted Hyer-Spencer, despite fact the ruption conviction proved innuendo the When true. ments released aer Silver’s recently overturned cor man inNew York, aer governor. the - docu Court Assembly made second-most-powerful him the was mistress the of Silver, control whose over the was even worse inAlbany. what people the of my me to elected do.” district my job. at’s what I’m supposed doing. to be at’s assertive and toI need be aggressive,” she said. “I do ship. But I understand that, as a woman in politics, ment. “I always show for respect leader party the party’s larger interests. Malliotakis’ to refusal play alongthe undermines transition of o ces to favored heirs. Insiders said iticians prop each other up and allow for orderly the GOP has e held local onto power its because pol registered Democrats two Republicans. for every to winning elections.crucial Staten Island has three andtics schemes back-room oen those deals, are preference for Donovan. Staten Island Republican their leaders had evinced nationalthe inher bid party to replace Grimm aer zations than with Richmond County’s. and statewide Republican and organi Conservative - suggest she has a warmer rapport with Brooklyn the Campaignthem. nance records of cash transfers colleagues could, and without quotes collecting from money forbus asenior service, center—before her announcing development—increased a positive local tion slowly eroded. She would issue releases news andliotakis her borough’s Republicanorganiza Hyer-Spencer in 2010. But relations between Mal
Republican legislation not usually does reach “To chilling could ondegree the speaker be the a Rumors for had swirled years that Hyer-Spencer If assemblywoman the hostility faced at home, it Malliotakis o ered response acurt to that assess- Despite public’s the distaste for machine- poli e nadir came Malliotakis when appealed to - - - - - perhaps not di erent so at all. national stage. In that she sense, and mayor the are through internecine the politics of New York to the could provide something she surely covets: apath or without establishment’s party the support against deBlasio positions her for either seat—with alifer to House. be inthe expected Malliotakis’ run judge. Donovan has an infant daughter and is not vacate in2019to his post become asurrogate court insiders Oddo, believe borough the president, will there chances likely be will for her at home. Some is bypassed for lieutenant the governor nomination, don’t siphon o many too votes. andif Dietl Reform Party candidate Albanese Sal versally Malliotakis reviled, probably him bury will of Staten Island, where mayor the is just about uni- bytakis acomfortable margin. But on her home turf Rico.Puerto a midday benet Bronx inthe for hurricane-ravaged berant dance circle handed her aguiro to play during win!” She appeared similarly reticent an when exu- “You’reRidge embraced her with cry the gonna unsureseemed how to aman reactwhen inBay awkward inperson and both on stump. the She persists. sti ness a certain River during acampaign stop at Island—but Coney instance, spotting when log ume the Wild ride SUV, she withdrew quickly into her smartphone. pivoted to matters. political Riding police inthe her by her mother and friends. luck charms Mediterranean inthe region—given to wears bracelets made with blue eyebeads—good- snacks marketed as health-conscious. She always rollstakis around city the with boxes of Kind bars, tions. An acionado of yoga and CrossFit, Mallio- regime expropriated her family’s home and gas- sta from Cuba arrived who in 1959 aer communist the mountains of Crete, her mother while is arefugee generation American; her father was inthe born have an opinion of her, aQuinnipiac found. poll voters did not know enough about Malliotakis to Low pro le And that means, evenifshe short falls of 30%and dispatch BlasioDe will almost certainly Mallio - Having to dampen her natural ame has leher She shows occasional bursts of enthusiasm—for But pushed when for more details, personal she e broad strokes are easy. She is asecond- A month before year’s this 64%of election, likely de Blasio.” thing you to need know about Bill quipped,liotakis - tells “ at you every him“acalled man of integrity.” Mal- an kickback alleged scheme, deBlasio ver in2015on corruption charges in incident. you,” Glick warned. someone playing starts games with speaker. You should quiet down before paperin the about alot talking the YorkNew Post responded threat, with the acryptic one of Silver’s most loyal lieutenants, tan Assemblywoman Glick, Deborah politician’s harassment. sexual Manhat- onsilence Brooklynnow-deceased the man Vito inexchange Lopez for their female sta members of Assembly- neled $545,000 in state money to young resign following revelations he- had fun ment quietly. didnot who liotakis, such take treat- never extended that courtesy to Mal- a Democrat to sponsor Silver them. When agents federal arrested Sil- Malliotakis declined to the discuss In 2013she demanded speaker the reported. “You’ve been ■ —and —and
10/20/17 2:17 PM POLITICS | INSTANT EXPERT
What happened to New York City’s Republicans? [in 5 steps] BY WILL BREDDERMAN
THE PLAYERS City Republicans lack THE ISSUE the party machinery and organized-labor New York has 2 infrastructure that tend to always been a win elections. Their mayoral Democratic city. 1 victories stemmed from spe- But candidates won cial circumstances. Giuliani ve straight mayoral (right), a Reagan appointee as U.S. Attorney for the Southern District races on the Repub- of New York, bypassed the of ce-climbing typically needed to become lican line—Rudy mayor. He won prominence with his high-pro le prosecution of mob- Giuliani in 1993 and sters and white-collar criminals. Running on a law-and-order platform, 1997 and Michael he triumphed on his second try, in 1993, thanks to a racially divided Bloomberg in 2001, vote and an atmosphere of lawlessness that prevailed during Dem- 2005 and 2009—and Republicans had footholds on the East ocratic Mayor David Dinkins’ tenure. His base of white ethnic Catholics Side and in Queens for years. That seems like a distant memory had formed the Democratic Party’s core but had grown more conservative now. Democrat Bill de Blasio crushed GOP candidate Joseph since the late 1960s. That base is still at the foundation of the GOP’s Lhota (above) in the 2013 mayoral race and leads this year’s electoral holdings in Staten Island, Brooklyn and Queens. Republican challenger, Staten Island Assemblywoman Nicole Malliotakis, by more than 40 points in the polls. Excluding districts based on Staten Island, city Republicans hold just one City Council seat, one state Senate seat and no Assembly or congressional seats. What happened? YEAH, BUT… Bloomberg’s 12-year reign looks increasingly like a uke. Polling suggests Democrat Mark 3Green would have won in 2001 if the 9/11 attacks had not boosted Giuliani’s popularity as he WHAT’S NEXT endorsed Bloomberg. The billionaire won twice more Although it’s unlikely Repub- GOP footholds despite a shrinking white population by running as a licans will soon recover the on the Upper socially liberal, scally conservative technocrat and 5mayoralty, things are bending spending at least $75 million per campaign. Lack- their way in a few places. Brooklyn’s East Side and luster Democratic challenges from Bronx Borough growing number of ultra-Orthodox in Queens have President Fernando Ferrer in 2005 and Comptroller Jews and Eastern Europeans voted eroded, but Bill Thompson in 2009 helped. So did Bloomberg’s overwhelmingly for Donald Trump last maneuvering for the Independence Party’s ballot year. Republicans brie y captured a the party could line—which appeased voters uncomfortable with a congressional and state Senate seat soon compete pure Republican. Bloomberg’s coattails were short: The in special elections this decade, but GOP made only small, ephemeral gains at the local level they sacri ced those districts during in southern during his time in of ce, and he is no longer involved in reapportionment to save seats else- Brooklyn city politics. Republicans have not matched Demo- where in the state. Look for the GOP crats in assimilating new groups. And anti-immigrant to compete seriously in the coming years posturing by the GOP nationally has hurt; more than in Sheepshead Bay, Manhattan Beach, 40% of city residents are foreign-born. Borough Park, Brighton Beach and Mid- wood. The party’s sole star in Queens is Councilman Eric Ulrich, a moderate Republican who lost a state Senate SOME BACKSTORY bid in 2012 but could threaten Dem- Besides Bloomberg and Giuliani, New York voters have elected just two ocratic Sen. Joseph Addabbo if he Republican mayors in the past 100 years: Fiorello La Guardia (right) and runs again. GOP prospects are dim in John Lindsay. Both were liberal, and Lindsay eventually became a Demo- the Bronx (where the few conserva- 4 crat. State Sen. Roy Goodman represented the so-called Silk Stocking District tive enclaves are grafted onto larger on the Upper East Side from 1969 until 2002, and Rep. Bill Green held its con- liberal areas and represented by gressional seat for a decade before losing to current Rep. Carolyn Maloney in popular incumbents) and Manhattan 1993. Under Goodman, the GOP’s county organization in the 1990s elected Assemblyman John Rav- (where the Upper East Side still has itz and City Councilmen Andrew Eristoff and Charles Millard. But Goodman quit the Senate in 2002, big GOP donors but gave Hillary Clin- and Ravitz lost his bid to succeed him to Democrat Liz Krueger. Eristoff and Millard left the council ton nearly 80% of its vote). For now, for other jobs in government, effectively ceding their posts to Democrats. In 2009 GOP businessman the Republicans must be content with Peter Koo won a City Council seat in Flushing. But he became a Democrat in 2012 as the Republican- Staten Island. leaning Asian-American community became largely Democratic when its second generation reached adulthood. Self-in icted wounds have also been an issue: Republican Daniel Halloran won a Queens council seat in 2009 but went to prison in a bribery scandal and was succeeded by Democrat Paul Vallone. BUCK ENNIS, GETTY IMAGES
OCTOBER 23, 2017 | CRAIN’S NEW YORK BUSINESS | 17
P017_CN_20171023.indd 17 10/20/17 2:38 PM PUBLIC RELATIONS | DAMAGE CONTROL
BEDEVILING: Kushner Cos. paid $1.8 billion for 666 Fifth Ave., the most ever spent on a Manhattan of ce WHO property. YOU GONNA CALL? For companies facing big problems, the answer often is the PR rm Finsbury. Just ask Kushner Cos.
BY AARON ELSTEIN
he Kushner family’s real When asked what sort of advice is being o ered ing reporters in the entire state has dropped almost estate business faces a to the Kushners, a Finsbury ocial replied, “It’s our by half, to 4,050. world of trouble. e rm rm’s policy to not comment on the work we do for “When I got to e Wall Street Journal in 1996, PR needs cash to pay o loans our clients.” people were supplicants because there was only one and possibly rebuild its outlet that counted when companies wanted to talk heavily leveraged prize Spinning gold to their investors,” said Dean Starkman, author of e headquarters at 666 Fi h Working behind the scenes, Finsbury and other Watchdog at Didn’t Bark, a history of business jour- Ave.—even as its partner, global PR shops have collectively grown into a pow- nalism. “ e dynamics have completely shi ed as the Vornado Realty Trust, re- erful force in the past two decades, as the inuence media atomized, and power now is in the hands of PR portedly has reservations of the traditional media has waned. Since 1997 the people, who have the clients everyone wants to talk about investing more in the property. to. By the time I le newspapers in 2015, In addition, federal prosecutors are reporters were the supplicants.” Tinvestigating the company’s use of a gov- e PR business in New York dates ernment program that grants visas to lure back to shortly a er World War I, when foreign investors. And President Donald Edward Bernays, a nephew of Sigmund Trump’s son-in-law and adviser, Jared Freud, launched the rst public relations Kushner, is under intense scrutiny over rm. “Propaganda was a bad word be- potential Russian interference in the 2016 cause the Germans used it,” Bernays re- election and for using a private email ac- called in the documentary e Century of count to conduct government business. the Self. “So I tried to nd other words.” Major-league problems such as these One of Bernays’ rst big successes require top-shelf public relations, which came when he pledged to reporters that explains why Kushner Cos. recently hired women would be smoking in public at Finsbury, a powerful New York rm that the 1929 New York City Easter Parade, specializes in damage control and put- FAMILY AFFAIRS: Founder a taboo at the time. He recast cigarettes ting the best possible spin on bad news. Charles Kushner, anked as “torches of freedom,” and his tobacco Finsbury’s clients in recent years have by sons Joshua and Jared client’s sales soared. included Volkswagen, as the automaker PR rms now rake in nearly $12 bil- grappled with its emissions scandal; Star- lion in annual revenue, with sales dou- bucks, when the co ee giant faced ques- bling in the past dozen years, according tions over its taxes; and such Wall Street “I WOULDN’T CALL FINSBURY A to the U.S. Census Bureau. Finsbury and institutions as Citigroup and Barclays, a handful of other big players—such as over banking scandals in the wake of the FIXER, BECAUSE IT’S A HOLLYWOOD Brunswick Group, FTI Consulting, Joele nancial crisis. TERM. BUT THAT’S THE ANALOGY” Frank Wilkinson Brimmer Katcher, “I wouldn’t call the rm a xer, be- Kekst and Co., and Sard Verbinnen & cause that’s a Hollywood characteriza- Co.—dominate the business of nancial tion,” said Michael Goodman, a professor and corporate crisis management. and the director of the master’s program in corpo- number of PR specialists in the metro area has more Finsbury itself brings in a bit more than $100 mil- rate communications at Baruch College. “But that’s than doubled, to 23,740, according to the U.S. De- lion in revenue annually and has 238 employees, ac-
BUCK ENNIS, GETTY IMAGES the analogy.” partment of Labor. Meanwhile, the number of work- cording to e Holmes Report, so it is small compared
18 | CRAIN’S NEW YORK BUSINESS | OCTOBER 23, 2017
P018_P019_CN_20171023.indd 18 10/20/17 12:58 PM with industry leaders such FACTS as Edelman and Weber Shandwick, which each generate more than $800 The GCA. million in yearly revenue. But what Finsbury lacks in Think of it as 23,740 size it makes up for in in- NUMBER OF uence. New York’s PR specialists working In 1986 Linda Rob- in the metro area inson, a former Reagan administration o cial, other bedrock. launched the rm Robin- For over 109 years, GCA members have son Lerer & Montgomery laid the groundwork that’s made New York to give PR advice to the the economic powerhouse it is today—from 4,050 era’s business leaders, in- structures that defi ne New York’s skyline, NUMBER OF cluding junk-bond king to the unseen water and sewer systems, as working reporters in Michael Milken. When well as roads, bridges, transit systems, the entire state Milken was under federal parks and schools. investigation for insider trading, RLM positioned Those systems connect people to business the Wall Street executive as a “national treasure” opportunities, health care, education—and who helped raise nancing for worthy companies, each other. They make neighborhood according to the book Den of ieves by James Stew- communities vibrant, livable and desirable. art. Ultimately the e ort could not save Milken. He pleaded guilty to securities fraud and served two GCA members built New York City’s fi rst years in prison. subways and are proud to continue building In 2011 RLM merged with Finsbury, which had and expanding the subway network today. been founded in London in 1994 by former Finan- cial Times reporter Roland Rudd and is now owned by U.K.-based conglomerate WPP. e rm’s execu- tive sta today includes Stephen Labaton, formerly The General Contractors GCA a reporter for e New York Times, and partner Ed Association of New York, Inc. We Build Adler, the former head of corporate communica- New York tions at Time Warner. e company changed from RLM Finsbury to just Finsbury in 2014. Pay to play e Finsbury o cial elding calls from the me- dia regarding Kushner Cos. is Vice President Eric Wachter, who used to work for the Anti-Defamation League and a Washington law rm where, accord- ing to his LinkedIn page, his specialties included helping clients cope with congressional and other government investigations. Previously Kushner Cos. employed Risa Heller Communications, a boutique PR rm run by a former spokeswoman for Sen. Charles Schumer. Heller declined to comment. e Kushners have had their share of PR trou- bles over the years. Jared’s father, Charles, spent 14 months in federal prison for tax evasion and witness tampering connected to a blackmail scheme against his sister’s husband. Jared’s sister, Nicole Meyer, is under federal investigation aer promoting her fam- ily’s connections to the White House while solicit- ing Chinese investors for a pair of luxury apartment towers Kushner Cos. is building in Jersey City. Jared resigned as CEO of the family business before join- ing the Trump administration but retained interests in certain projects. In Finsbury, the Kushner family has turned to a rm whose services don’t come cheap. Partners charge up to $1,000 per hour for their expertise, ac- cording to federal court documents. ose records also show that the rm was paid about $300,000 for less than six months’ work advising the manufactur- er of Suzuki motorcycles when it was going through bankruptcy. Of course, the Kushners will prove a far more complex assignment than a corporate Chapter 11. Finsbury o cials likely will make family members available for interviews with media organizations they believe will o er sympathetic coverage. But the company also could spar with reporters preparing potentially unfriendly articles. Persistent journalists might nd their requests for information met with reams of data that take a long time to si through. “It’s about slowing the process down,” Starkman said. “It’s kosher, but that’s how the game is played.” ■
OCTOBER 23, 2017 | CRAIN’S NEW YORK BUSINESS | 19
P018_P019_CN_20171023.indd 19 10/20/17 12:59 PM CORPORATE RELOCATION GUIDE
residences in New York City. “With one flat fee Want to house employees and everything included, it makes it easy for our clients to budget the cost,” he said.
relocating in New York City For employees who are doing a temporary relocation with babies and young children, it may be easier to rent requisite gear than to buy a temporarily? new set and move it all to New York. Companies such as Babierge, a nationwide baby gear rental platform that has a provider in Brooklyn, work with individuals who are relocating, as well as Get creative. their employers, to meet this need. Babierge delivers items such as high chairs, cribs, strollers and toy boxes and sets them up at the location where someone will be living.
“Many corporate housing locations are really set up for business,” said Babierge CEO Fran Maier. “They don’t necessarily want to be in the baby- gear business.”
Understand employees’ priorities For employees who are married or couples, making sure their partner will be able to work can make or break a decision to move. More than half of the firms in a survey by Atlas said employees declined relocation last year due to spousal employment issues—near the highest levels since 2002. More firms of all sizes, including small firms, are offering spousal/partner assistance as a result, according to Atlas’s survey. Networking assistance is the most popular form of employment assistance at small and mid-size firms, but for large firms it is outplacement/career services from an outside provider.
For employees who are parents, proximity to schools is also important. “Schools are always number one,” said Mulholland. A good relocation firm will be able to connect them with local experts who can help them determine what options are available. hen an IRS employee from Arlington, Va., after places to inhabit, but the cost of living is needed to find a home in New York City likely to be higher than what your team members Find the right broker Savvy brokers will tune in Wnot long ago, Bill Mullholland, director at from other parts of the country are used to. quickly to the type of lifestyle your employees American Relocation Connection (ARC), found According to research by the consulting firm want to have in New York City. Jim LaBanca, vice himself writing what he calls a “love letter” to the Mercer, New York City ranks 11th in the world for president of Relocation of Berkshire Hathaway landlord to sing the client’s praises. cost of living—the only city in the U.S. to crack HomeServices New England Properties, noted the top 25. that when his firm worked on a group move by In today’s competitive housing market, a major automotive manufacturer to New York Mulholland often finds himself preparing notes Before you start to secure temporary housing City, it found that younger, active and single like that on behalf of would-be tenants and for them, give employees a chance to talk with people gravitated to areas such as Chelsea, buyers who are moving to the city. ARC, based in your relocation firm. Ideally, they should visit the Lower Manhattan, Queens and the West Village. Washington, D.C., handles about 200 corporate city first, so they’ll know what to expect, advise “Those relocating from a more suburban area moves in and out of the New York City per year. experts. “New York is such as complex market were inclined to move to New Jersey, where they that if we’re moving someone to New York who could purchase a single-family home,” he said “We’re writing things like ‘All their costs are lived here 3 or 4 years ago, they’ll be surprised at in an email. “It’s very common, when assisting paid for. There are no concerns about having to how much it’s changed,” said Mullholland. corporate transferees who are homeowners, for sell that home or break their lease. They have a us to place them in lower Fairfield county, and guaranteed buyout. Their employer is covering To make sure employees can handle the financial Westchester county as well.” lease-breakage fees,’” said Mulholland. realities of living in New York City, Mullholland recommends that client companies give Often, relocation firms will have existing As Mulholland and other relocation specialists employees a cost-of-living salary equivalent. relationships with brokers in the area, saving have found, moving employees to New York City As he points out, someone living in Kansas on corporate clients the work of finding one on their often requires a creative, high-energy approach. $75,000 a year would need to earn $225,000 own. ARC, for instance, works with local brokers A key part of the strategy is usually putting up in Manhattan, N.Y. to approximate the same in every community where it handles relocations transplants in temporary housing as they hunt— lifestyle. “It’s not middle America,” said for corporate employees. Brokers can be helpful and perhaps vie for—their ideal home. Mullholland. Because employees sometimes with things like comparing the taxes from one realize after the fact that they can’t afford to live area to another. “Taxes can be complex and can Here are ideas on how to make sure that in New York City, he noted, “The attrition rate is vary from borough to borough and area to area,” employees have a good experience transitioning high.” That is costly for their employers. said Mulholland. to New York City so that they’ll want to stay put. Keep temporary housing situations With such details nailed down, it will be a lot Make sure employees understand the realities predictable Like many relocation firms, ARC easier for your employees to settle in and enjoy New York City is one of the world’s most sought- typically relies on providers of furnished living here—hopefully for the long term. (877) 675-0731
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CN018405.indd 1 10/17/17 11:01 AM CORPORATE RELOCATION GUIDE some buildings, said Rachmany, “the building will not allow nonunion movers to unload.” There are work-arounds, he said, but it’s best to plan ahead for them.
Be sure to check the city’s calendar to make sure your moving day doesn’t coincide with a major event, such as a parade, that could limit access to streets, advises Ron Vaknin, commercial department manager for Oz Moving & Storage in Three ways Manhattan. His advice: Don’t to make sure move during the U.N. General Assembly week. “Besides your company move the traffi c, trucks have to be goes smoothly inspected in Midtown,” he said. Find a seasoned pro Although t takes smart planning to pull off a successful there are plenty of upstart corporate relocation in New York City. Given moving companies competing Ithe hustle and bustle of city streets, having the for your business, working with right moving professionals on your side can make a well-respected fi rm with a a real diff erence. company good reputation is often a good insurance policy move, against things going wrong. “A company that builds A growing number of fi rms are turning to outside contact the itself a strong brand and reputation can’t aff ord to pros for help relocating. More than three-quarters building compromise that,” noted Rachmany. of fi rms moving offi ces outsourced relocation management at your destination to fi nd out services in 2015 and 2016, the highest levels in a about any rules or building conditions you need Get up and running quickly Ask any prospective decade, according to the Atlas Annual Corporate to discuss with your relocation team. Many offi ce mover to explain what labeling system would be Relocation Survey for 2017. buildings in New York City allow moves only from used for boxes and furniture you’re transporting, 5 p.m. to midnight, said Lior Rachmany, CEO at to make sure you won’t be hunting for missing So how do you fi nd the right company to help you Dumbo Moving and Storage Co. in Brooklyn— boxes weeks after a move.“ The mover needs to with your corporate relocation—and make sure your which means you may have to stretch out a larger be transparent in how they are going to do that,” move goes smoothly? Here are some tips. move over two days. said Rachmany. With everything in its proper place the day you move in, your company will be Do your homework Before you embark on a Make sure to ask if the building is unionized. In able to get back to work without missing a beat.
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Notice of Qualification of MEETYL LLC Notice of Qualification of COATUE PE Application for Authority of 27H, LLC AO/Security Engineer (AllianceBernstein Appl. for Auth. filed with Secy. of State ASIA X LLC Appl. for Auth. filed with filed with the Secy. of State of NY L.P.- New York, NY) Dsgn, implmnt, mng of NY (SSNY) on 09/21/17. Office loca- Secy. of State of NY (SSNY) on (SSNY) on 9/7/17. Formed in NJ & supprt firm’s internet & remote access tion: NY County. LLC formed in Dela- 08/23/17. Office location: NY County. 9/1/17. Office Loc.: New York Coun- infrastructure. F/T. Reqrs Bach’s dgr (or ware (DE) on 04/20/12. SSNY desig- LLC formed in Delaware (DE) on ty. SSNY is designated as agent of frgn equiv) in Comp Sci, Info Sys, Comp nated as agent of LLC upon whom proc- 08/21/17. Princ. office of LLC: 9 W. LLC upon whom process against it Engnr’g, Telecommunictn Networks or rel 57th St., 25th Fl., NY, NY 10019. ess against it may be served. SSNY may be served. 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OCTOBER 23, 2017 | CRAIN’S NEW YORK BUSINESS | 23
P023-24_CN_20171023.indd 26 10/19/2017 2:46:36 PM EXECUTIVE MOVES Advertising Section New hires, promotions and board appointments. Place your listing at crainsnewyork.com/execmoves or contact [email protected] ❚ ACCOUNTING ❚ FINANCE ❚ HEALTH CARE ❚ LAW
Your Part-Time Controller LLC M&T Bank Brighton Health Plan Solutions Romer Debbas LLP Jennifer Alleva has M&T Bank’s Blair Ridder As Chief Revenue Romer Debbas LLP, a been named Managing has been promoted Officer,a newly-created New York-based com- Partner at Your Part- to Senior Group Manager role, Bob Braddick mercial and residential Time Controller to for Middle Market bank- will lead and manage all manage day-to-day real estate law firm, ing in New York City. market-facing efforts, operations as the firm announced attorney expands nationally. Ridder has been with including sales, account Christian P. Daglieri YPTC provides onsite M&T for eight years, having most recently management, and joined as partner. At accounting and financial services to 400 served as Administrative Vice President marketing and communications, for both Romer Debbas, Mr. nonprofit organizations in New York, Phil- and Middle Market Group Manager in the commercial and labor businesses of Daglieri practices transactional real estate, adelphia, Washington, and Houston. YPTC Northern New Jersey. He currently resides Brighton Health Plan Solutions. including acquisitions, sales, financing, has been named a “Best Place to Work” in Hoboken, N.J. leasing and development transactions. He nine times. was previously a partner at Montgomery McCracken Walker & Rhoads LLP. Allied ❚ ENTERTAINMENT ❚ INSURANCE Allied is a national healthcare solutions ❚ TECHNOLOGY iN DEMAND HUB International Limited company, that works Ms. Dale Hopkins, with organizations who Marc Cohen, President 1WorldSync award-winning industry of HUB International choose to take control 1WorldSync has named veteran executive, will be Limited, has been pro- of their healthcare. With Karin Borchert as Chief leading this NYC-based moted to President and highly customizable administrative services, Executive Officer and transactional entertain- Chief Executive Officer they provide healthcare designed for people. Managing Director. She ment and technology effective January 1, 2018. Allied welcomes David Antalek (New will be responsible for company, specializing in PPV and VOD, He will also be a member York office), where he will focus on serving driving the company’s whose clients and partners include all the of HUB’s Board of Directors. brokers, consultants, and clients in the top cable & telco companies, all major northeast. operations and global strategy. Borchert Hollywood movie studios and indies, major brings more than 20 years of global expe- professional sports leagues, boxing, MMA rience leading data-driven businesses to and special events suppliers. her role, spearheading growth strategies in EXECUTIVE MOVES content acquisition, business development, Placement Guaranteed operations and technology.
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24 | CRAIN’S NEW YORK BUSINESS OCTOBER 23, 2017
P024_CN_20171023.indd 24 10/18/2017 3:34:33 PM GOTHAM GIGS
NO GUTS, NO GLORY: Capo, enjoying a Dyker Heights, Brooklyn, haunted house, hopes his second horror- lm festival will be a critical and BY LANCE PIERCE nancial success.
Fright knight A passion for horror lms inspires a public relations pro to start a Halloween lm festival
ohn Capo didn’t watch Saturday morning cartoons celebration across the ve boroughs, with haunted walking like most boys. At 8, his favorite movie was Stanley tours, art exhibits and panel discussions. “If I could grow JOHN CAPO Kubrick’s e Shining. “I had the kind of parents who the festival into something so big that it became a full-time allowed me to watch anything I wanted,” said Capo, job, I would be the happiest person on earth,” he said. AGE 37 Jwho lives in Bay Ridge, Brooklyn, just blocks from Horror, Capo explained, is one of the only genres that BORN Bensonhurst, Brooklyn the house he grew up in. “I watched horror movies all almost always makes money at the box o ce. “ ere’s a RESIDES Bay Ridge, Brooklyn the time and never was too scared to sleep.” primal desire to want to be scared and experi- EDUCATION Bachelor’s in dramatic Since then he has seen nearly every slash- “The primal ence the unknown. It’s an escape from the real writing, SUNY Purchase College; er lm ever made, some of them—such as desire to be problems of the world,” he said. “You know master’s in higher education admin- Halloween—hundreds of times. He likes the you’re going to be scared for two hours, but in istration, Stony Brook University genre so much that last year he self-funded scared is an the end you will walk out safe.” OH, THE HORROR The only movie a festival of new and classic horror lms, escape from Capo grew up in a Halloween-obsessed that has succeeded in scaring Capo FearNYC. It got rave reviews, and some of the family. His childhood house was renowned is The Blair Witch Project, which he the real watched in college. “To get back to lms, including e Dark Tapes and Blurred problems of in the neighborhood for his dad’s decorations: campus, we had to walk through the Vision, were picked up for distribution. giant monsters, ying witches, spooky music. woods. We were freaked out.” the world Although the 65- lm event lost money, ” Since his passion for horror doesn’t pay the PEEK AND SHRIEK Capo invites Capo is doing another one this month, short- bills, he began working in public relations 10 friends over every Halloween to see ened to three days from seven to better its chances of making years ago, mostly representing o-Broadway shows, such a horror lm. This year’s choice is a pro t. Capo, who declined to divulge its budget, is search- as e Fantasticks. He also teaches courses on media and The Texas Chain Saw Massacre. ing for a corporate sponsor but has two media partners: communications at the Fashion Institute of Technology FESTIVAL FACTS From Oct. 27 horror rags Bloody Disgusting and Dread Central. He also and Borough of Manhattan Community College. to 29 FearNYC will show 30 new fright icks, including some world moved the event from Cinema Village, which has 160 seats, “My brain is not wired for the monotony of the typi- premieres, and host Q&A sessions to a 60-seat screening room at the Producers Club in Hell’s cal 9-to-5 routine,” Capo said. “In the gig economy, if you with the writers and directors. A Kitchen. e 37-year-old runs the festival himself with two don’t want to work a 9-to-5 job, you have to wear many three-day pass is $125.
BUCK ENNIS volunteers but hopes to turn FearNYC into a monthlong hats to make a living.” — MIRIAM KREININ SOUCCAR
OCTOBER 23, 2017 | CRAIN’S NEW YORK BUSINESS | 25
P025_CN_20171023.indd 25 10/20/17 6:15 PM SNAPS
Opening the season with arias A perennial highlight of the fall social season, the Metropolitan Opera’s opening gala featured a performance of Bellini’s Norma starring soprano Sondra Radvanovsky, mezzo-soprano Joyce DiDonato and tenor Joseph Calleja. Around 750 A-listers attended the Sept. 25 event—includ- ing a dinner served in a tent in Damrosch Park—which raised $4.9 million.
e Metropolitan Opera’s general manager, Peter Gelb, and Mayor Bill de Blasio took part in the festivities. “ ere Rupert Murdoch, Fox News chairman and acting CEO, are many great cities in and his wife, Jerry Hall, attended the dinner. the country, but there is nowhere that has this Metropolitan Opera and everything in Lincoln Center,” said the mayor.
To health! Planting seeds At its annual Rose Garden dinner, the New York Botanical Garden honored Harry and Jeanie Burn for their 30 years of support, including their help restoring and expanding the historic lilac collection. Among the guests were event chairwoman Ann Harrison; Harry Burn, co-chairman and portfolio manager at Sound Shore Manage- ment; Jeanie Burn; event chairwoman Patti Fast; and Gregory Long, the garden’s CEO and president.
United Hospital Fund, a nonpro t dedicated to improving New Yorkers’ health care, held a fundraiser Oct. 3. James Simons, co-founder and chairman of the Simons Foundation; James Tallon Jr., who retired as president of the United Hospital Fund in August; Priscilla Almodovar, managing director and co-head of real estate bank- ing at JPMorgan; and Dr. Robert Gore, an emergency-room physician, medical professor and founder of Kings Against Violence Initiative, were honored.
e city’s chief strategy and innovation o cer for health, Deborah Brown, Vickie Zoellner, chair with Dr. Herminia of Alpine Associates, as Palacio, deputy mayor well as Gordon Uehling, for health and human founder and managing services, at the event at Ci- director of CourtSense, priani 42nd Street, which and his wife, Rehana, raised $1.76 million. helped raise $850,000 at the Sept. 27 dinner.
PATRICK MCMULLAN/METROPOLITAN OPERA, UNITED HOSPITAL FUND, ZACH HILTY BFA FUND, ZACH HILTY OPERA, UNITED HOSPITAL MCMULLAN/METROPOLITAN PATRICK SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO: [email protected].
26 | CRAIN’S NEW YORK BUSINESS | OCTOBER 23, 2017
P026_CN_20171023.indd 26 10/20/17 6:34 PM PHOTO FINISH
Boo-biz boom ust like the December holidays, Halloween produces sweet bene ts for the economy. e National Retail Federation expects that Americans this Jyear will spend $9.1 billion on supplies for Oct. 31, up 8.3% from last year. With nearly half the country planning to dress up, costume shops such as Abracadabra on West 21st Street expect to bustle with customers for the rest of the month. “ ese last few weeks are pandemonium,” said Naika Cadet, who handles marketing and social media for the costume store. “It’s harder to shop here in October because there are so many people. We can’t engage as much with customers and their projects.” It’s no surprise that Halloween purchases are a major revenue source for Abracadabra. Business does well throughout the year, even though political masks, like these, sold better last year. Cadet estimates that half the 3-story retailer’s sales come from local productions in- cluding Saturday Night Live, e Tonight Show Starring Jimmy Fallon and Broad City. “In New York lms are going on all the time,” said Cadet. “We have those random pieces that people need.” — GERALD SCHIFMAN NNIS E K BUC
OCTOBER 23, 2017 | CRAIN’S NEW YORK BUSINESS | 27
P027_CN_20171023.indd 27 10/20/17 6:04 PM TO CREATE THE POPCORN IN HERE, PIPCORN HAD TO GO OUT THERE.
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CN018363.indd 1 9/19/17 11:25 AM