Picture Darkens for City's Museums

Home , 55 Wall Street, Pier 40, Pitango, The Apthorp

CNYB 02-02-09 A 1 1/30/2009 8:12 PM Page 1

INSIDE Obama gives TOP STORIES newspapers brush-off Tiny clue: —Valerie Block on searching Vanishing microbe for a rescue plan may be behind rise ® for media in asthma Page 11 PAGE 2

VOL. XXV, NO. 5 WWW.CRAINSNEWYORK.COM FEBRUARY 2-8, 2009 PRICE: $3.00

Larry Gluck’s Bankers, property empire coming unstuck; beware: Riverton on ropes PAGE 3 D.C. calls W. Broadway loses edge as the shots shops shut Bonus furor gives along taste of life with once- feds in charge

trendy SoHo street BY AARON ELSTEIN PAGE 8 lavish bonuses, as central to life Econ stimulus plan on Wall Street as BlackBerrys,din- creates NY heroes; ners at Bobby Van’s Steakhouse and late-night rides home passed thanks, Chuck out in a Town Car, are under siege. PAGE 12 Outrage over news that banks had showered their New York City em- jon conrad jon ployees with $18.4 billion of bonuses extended last week to the White House, where President Barack Obama blasted Wall Street’s self-ori- $4B ented largesse as BONUSES PAID “shameful.” New late last year WALL STREET 2.0 at Merrill Lynch York Attorney just before BofA General Andrew acquired it First hints of revival provide peek at the future Cuomo has sub- poenaed former Merrill Lynch stitutions whose survival seemed very much in doubt Chief Executive John Thain about BY AARON ELSTEIN last autumn—Wall Street warhorses Morgan Stanley a year-end $4 billion bonus binge and Goldman Sachs, and a host of smaller firms. just before Bank of America pur- BUSINESS LIVES don’t look now, but amid the darkest times to hit Shares of Morgan, led by Chief Executive John chased the beleaguered firm. Wall Street in nearly 80 years there are stirrings of life. Mack, are up 26% so far this year, while Goldman, un- The industry is bracing for the CAN THEY SWING IT? As the new Obama administration races to repair the der CEO Lloyd Blankfein,has held its own and Bruce federal government to get still Couples debate shattered banking system, investors are beginning to Wasserstein’s Lazard has seen a drop of 11%—in stark more involved in setting pay lev- whether to procreate as place their bets. They are abandoning big banks and contrast to Citigroup and Bank of America, which els for the city’s brigade of bankers the recession takes its instead placing their chips on a group of financial in- See WALL ST. 2.0 on Page 26 See D.C. on Page 26 toll on family finances PAGE 27 Picture darkens for city’s museums INDEX tor of the Brooklyn Museum. fewer—and less ambitious—shows NEW YORK, NEW YORK ______6 Funding cuts, shrinking endowments, “There really are no bright spots I and special programs, as well as NEIGHBORHOOD JOURNAL can see at this time.” shorter hours. ______8 tourism decline make this recession worst Hit with steep cuts in public Some organizations are still re- REAL ESTATE DEALS ______13 concerts. And the Brooklyn Muse- funding, as well as declines in viewing their budgets for places to SMALL BUSINESS ______14 BY MIRIAM KREININ SOUCCAR um is planning more exhibits earned income and corporate and trim, and arts executives say every CLASSIFIEDS ______24 around its own collections. foundation grants, museums one of the city’s 60 museums is be-

CORPORATE LADDER ______29 as a way to save money, the “We’re all scrambling to come to throughout the city are slashing ing squeezed. Even the Metropoli- Queens Museum of Art will no terms with how to deal with the budgets, laying off staff and doing tan Museum of Art,the largest mu- EXECUTIVE MOVES ______29 longer provide visitors with exhibi- weakening financial situation in a everything else they can to operate seum in the country, recently WEEK IN REVIEW ______30 tion brochures.The American Mu- way that inflicts the least short- and with dwindling resources. For New implemented a hiring freeze.

SeeTABLE AT TALKDEADLINE ______on ______Page ______2 ______31 seum of Natural History has can- long-term damage to our institu- York culture hounds,that will mean Museums have weathered other celed its popular Friday night jazz tions,” says Arnold Lehman, direc- their favorite museums will have See MUSEUM on Page 26 05

5 SPECIAL REPORT With the economy faltering, New THE FUTURE OF York’s crucial growth sectors face ELECTRONIC EDITION big challenges and yet must be NEW YORK CITY the key to any recovery NEWSPAPER 71486 01068 0 CNYB 02-02-09 A 2 1/30/2009 8:11 PM Page 1

BUGGED: Dr. Martin Blaser says IN BRIEF Helicobacter pylori’s decline is A HEDGE FUND THAT LOST BILLIONS WITH contributing to BERNARD MADOFF CEASED OPERATIONS AND childhood asthma. laid off most of its staff last Friday. Rye Investment Management, a division of Tremont Group Holdings, was responsible for more than half of its parent company’s invested assets of $6 billion.Though billed as a single- manager hedge fund employing complex investment strategies, Rye funneled all its clients’ money to Mr. Madoff. Losses are estimated at $3.1 billion. At the beginning of last year,Tremont Group had 118 employees between its two units: Rye Investment and Tremont Capital Management.The company did not disclose how many people were fired. Investors have filed class-action lawsuits against both Tremont and its Rye unit. NECKTIES ARE NOT THE ONLY CASUALTY AT THE 21 CLUB. AFTER MAKING HEADLINES FOR nixing its long-standing policy requiring ties on male dinner patrons, the 80-year-old den of power meetings is also slashing prices. Management assembled a four-page list of

deals meant to boost its breakfast, lunch, dinner levinekarjean and private dining business.The bargains include everything from free cocktails for making a reservation on 21’s Web site, to 20% off the price of a wine cellar luncheon and $150 dining gift certificates for spending $2,000 on a New clues to private party. ON MONDAY, NASSAU COUNTY EXECUTIVE TOM SUOZZI WILL PROPOSE A 10% REDUCTION IN asthma causes the county workforce, a 26-day shutdown of county operations and various program reductions to balance its budget. Mr. Suozzi Researcher IDs gut bug as possible player says that, in order to close Nassau County’s $150 million deficit, he aims to get $40 million roaches have been blamed. But a surpris- more in Medicaid funding from Washington, BY GALE SCOTT ing discovery by researchers indicates that $30 million to $50 million in taxes and fees— an overemphasis on cleanliness might be at for which he needs state Legislature approval— for years, New York City’s medical re- the root of the increase in asthma. and much of the rest from labor concessions. searchers have been puzzled by the preva- A stomach microbe called Helicobacter He’s against a county income tax, so that won’t lence of childhood asthma, the rate of pylori, or H. pylori, is at the center of this

be part of the package. which has doubled since 1930. The ail- medical theory. Still common in undevel- lindström bekka ment afflicts 300,000 children here,results oped countries,H.pylori is vanishing else- CORRECTION in about 200 deaths annually and con- where—killed off by antibiotics as com- predicts that the bug will almost disappear John Calvin Slemp is managing director of global security and sumes millions of dollars in health system mon as penicillin and water purification. from the United States within a decade. privacy solutions at Protiviti. His title was misstated in the Jan. 26 resources. Dr.Martin Blaser,a microbiologist at New Until now, that development has been “Expert Opinions” column. Air pollution, mold and even cock- York University Langone Medical Center, See ASTHMA on Page 9

vol. xxv, no. 5, february 2, 2009—Crain’s New York Business (issn 8756-789x) is published weekly, except for a combined issue 4th week of December by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Caritas nears reckoning Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved. closures of some facilities that are essential quated facilities and a large Medicaid pop- Queens system headed providers,” says David Sandman, senior ulation. The recession and state budget toward bankruptcy vice president of the New York State cuts have added to its difficulties. Health Foundation and the former execu- Originally part of St. Vincent Catholic MISERY METER after millions spent tive director of the Berger commission. Medical Centers, which itself declared The state has pumped $50 million into bankruptcy in 2005,the hospitals were sold Weekly reading on the direction of the Caritas in the past few years, including $6 to Wyckoff Heights Medical Center in city’s economy. BY BARBARA BENSON million on Jan. 23 so that the system could 2006 for $40 million, including the as- meet payroll. If New York does not come sumption of about $26 million in liabilities. POSITIVE NEGATIVE after months of intense negotiations up with another $6 million for the next State regulators agonized over the deci- among hospital executives, local politi- payroll, on Friday, Caritas may be forced sion to approve the sale but eventually + CLOUDY - cians and state leaders about how to save into Chapter 7 liquidation, according to a agreed because there were no other options. Caritas, the two-hospital system in source. Senate Majority Leader Malcolm According to a memo to the State Hos- S Y T Queens appears headed for bank- Smith has been meeting with pital Review and Planning Council on O N R ruptcy court within a week. Even Queens politicians and hospital ex- Sept. 15, 2006, Wyckoff Heights did not N M U the best-case scenario, reorganiza- ecutives to try to broker a deal. meet Department of Health standards for Y $50M S tion, could mean that only one of AMOUNT If Caritas instead reorganizes capitalization. The agency’s concern “cen- the facilities will survive. pumped into under Chapter 11 bankruptcy pro- ters on the ability to retire the acquisi- Caritas by the The closure of Mary Immacu- state over the tection, it’s possible that St. John’s tion/working capital debt in a timely man- late, St. John’s or both would be a past few years would be taken over by the North ner, debt which includes a certain amount $819B -3.8% +0.8% blow to health care in Queens.The Shore-Long Island Jewish Health of ‘balloon payment,’ ” wrote Neil Ben- Size of economic Annualized decline Bloomberg/ Commission on Health Care Facilities in System, which owns nearby Forest Hills jamin, assistant director of health facility stimulus bill in GDP in 4th Crain’s NY Stock the 21st Century—the Berger commis- Hospital. North Shore-LIJ would tear planning at DOH. approved by House quarter Index weekly last week (U.S. Commerce Dept.) change sion—decided that Caritas,which employs down St. John’s, build another hospital on Turning Wyckoff Heights down, 2,500 and treats 200,000 patients annually, the site and shutter Forest Hills.Mary Im- though,would mean “the distinct possibil- was too important to fail. What the state maculate would close, and other Queens ity of closure of both hospitals,” Mr. Ben- METER CHANGE from previous week has been trying to avoid is likely to occur. hospitals would have to absorb its services. jamin wrote, which would “in all likeli- + “What we’re seeing post-Berger is the Caritas has been on shaky ground for hood result in a true crisis in access to care, return to unplanned bankruptcies and the years, burdened by poor cash flow, anti- the most undesirable outcome of them.”

2 | Crain’s New York Business | February 2, 2009 CNYB 02-02-09 A 3 1/30/2009 8:14 PM Page 1

Mayor’s Shaky foundation dicey tax Riverton Houses faces foreclosure; proposal other properties also come up short Plan to hike city sales tax faces BY THERESA AGOVINO fierce opposition

laurence gluck is a tenant’s nightmare, a man who has scooped BY ERIK ENGQUIST up thousands of units of affordable housing and turned them into mar- mayor michael Bloomberg ket-rate properties, unleashing an stepped further into a political army of lawyers on any who oppose minefield last week with his propos- him. al to increase the sales tax and take For years, his approach has other unpopular steps to plug a $4 worked famously, helping make billion hole in the city’s 2010 budg-

Mr. Gluck a tidy fortune. ap images et.The path he must navigate to bal- Now, however, sinking ance the books is especially treach- property values and a push- erous this year,because the recession back from politicians and has torpedoed tax revenues,the gov- regulators are threatening ernor wants to cut city aid by $1.6 his business model. LAURENCE GLUCK have plunged as much as 48% since Gluck’s ability to hike rents and may billion and it’s an election year. Nowhere is the sea bought Riverton Houses it was refinanced in 2006. hurt his efforts to pay off mortgages. Mr. Bloomberg’s public approval with a partner in 2005. change clearer than at the The complex faces For Mr. Gluck, Riverton is only A former lawyer, Mr. Gluck be- rating has slipped since he raised Riverton Houses, a sprawl- foreclosure on Feb. 20. one of several problems. For years, gan buying cheap properties in property taxes 7% last month, and ing 1,230-unit rent-regu- he has prospered by buying Washington Heights during the the terrain will only get more chal- lated apartment complex in Mitchell-Lama housing projects, a mid-1990s with a partner and moved lenging. Democratic state legisla- Harlem that faces foreclo- units of affordable type of rent-subsidized property, on to Manhattan office towers. tors from New York are irate that his sure on Feb. 20. housing are in dan- and taking them out of the program. preliminary budget would generate Mr.Gluck’s Stellar Man- ger of bankruptcy In recent months, however, his ef- Proletarian background $894 million over 12 months by hik- agement and his partner, Rockpoint and disrepair, according to a recent forts to buy up three more such mr.gluck started buying Mitchell- ing the city’s portion of the sales tax Group, purchased the complex in report by Sen. Charles Schumer buildings have gone nowhere, de- Lama projects after they parted to 4.25% from 4%, while leaving in- 2005 and a year later predicted in- and housing advocates, who are spite numerous lawsuits he has filed. ways and now owns 16 buildings come taxes unchanged. come would mushroom because pressing for new guidelines to stop Meanwhile, Mr. Gluck faces formerly in the program.After pur- “The last thing we should be do- they planned to convert 53% of predatory lending. The report two suits from tenants at the 1980s chasing the buildings, he would ing is further increasing the burden apartments to market rates by 2011. faults developers,who grossly over- downtown complex known as In- meet with tenants to ease their anx- on working people by raising the re- By last summer, only 10% of the estimated their buildings’ future fi- dependence Plaza. They accuse ieties by talking about his Bronx gressive sales tax,” says Assembly- units had been converted, and man- nancial performance, and lenders, him of turning the former working-class roots, sources say. man Hakeem Jeffries, D-Brooklyn. agement announced it would de- who granted mortgages based on Mitchell-Lama building into a “He can really be charming,” “Either he’s blind to the climate that fault on its $225 million loan. such predictions. market-rate property illegally five says Serge Joseph, a tenant lawyer. exists right now or he’s willfully ig- As the first large-scale project to years ago. If Mr. Gluck loses, he Even advocates concede that Mr. norant that an increased sales tax is face foreclosure since the recession Sea change may have to pay tenants damages. Gluck is a decent landlord.They say likely to be treated as radioactive.” hit, Riverton’s fate is now being “it takes a crisis to create a para- On yet another legal front, Mr. his typical approach is to fight rent closely monitored by other devel- digm shift,” says Dina Levy,director Gluck and other landlords are suing regulation by filing lawsuits that af- Mayor grilled opers who have snapped up resi- of organizing and policy at the Urban the state so they can raise rents in fect entire buildings instead of ha- the increase is subject to approval dential towers with plans to quick- Homesteading Assistance Board. former Mitchell-Lama buildings rassing individual tenants. by the Legislature and City Coun- ly deregulate apartments. Many of At Riverton,the debacle centers by more than is currently allowed. “He doesn’t use pit bulls and cil,whose members grilled the may- those, including Peter Cooper Vil- on the almost $10 million gap be- However,the state has closed a legal thugs to intimidate tenants,” says or last Friday. Councilman Lew lage/Stuyvesant Town and Savoy tween mortgage payments and net loophole the landlords were using to Seth Miller, a lawyer representing Fidler, D-Brooklyn, asked the may- Park, are now on credit watch lists. cash flow. Meanwhile, sources esti- make their argument. A loss in that tenants in suits against Mr. Gluck. or why he would not seek a tempo- All told, an estimated 60,000 mate that the complex’s value may case could severely curtail Mr. “He is quick to file a lawsuit.” rary personal income tax surcharge instead. Mr. Bloomberg replied that the state would most likely impose its own, and he did not want to pile on. He later told reporters, “My as- sumption is the state will dramati- Private high schools multiply cally increase the personal income tax” to close its $13.7 billion deficit. But Mr. Jeffries turns the mayor’s families $31,500 a year, logic against him, pointing out that Trendy Greenwich promises to offer a progres- Gov.David Paterson is proposing 137 High isn’t the only sive and innovative learning regressive fees and taxes, including environment for lower sales taxes on a variety of products newcomer to sprout Manhattan families. Clare- that are currently exempt. A sales tax during the downturn mont, which also charges hike would exacerbate their impact. $31,500,will be meeting the Business leaders defend Mr. need for private schools in Bloomberg. Kathryn Wylde, presi- BY AMANDA FUNG the financial district, where dent of the Partnership for New York more families have recently City, says forces are already pushing posh greenwich Village High migrated. Its focus on tech- for new income taxes on high earners

School,which boasts media bigwigs getty images nology and new media will as well as a payroll tax on businesses like Graydon Carter of Vanity Fair HOPINGFOR ENROLLMENT: David Liebmann, Michael Koffler and Graydon Carter (from left). differentiate it from rivals, to fund mass transit.“The mayor was on its advisory board, will make its says Judith Sheridan, Clare- clearly boxed in,” she says. splashy debut in September. mont’s high school director. Mr. Bloomberg and his aides call But it won’t be the only new pri- and rumors that cash-strapped city’s network of about 100 private The priciest of the three, Aaron the mayor’s proposal a starting point. vate school in town this fall— families are yanking kids out of ex- high schools. These schools expect Academy at $45,500 a year, is for They suggest that the sales tax in- Claremont Preparatory High pensive private schools, Green- to beat the odds and prove that ed- teens with learning disabilities.The crease won’t be needed if the state School and Aaron Academy, both wich, Claremont Preparatory and ucation, even with a hefty price tag, city has been lacking in special ed- abandons the governor’s plan to elim- owned by MetSchools Inc., will Aaron Academy are on track with is recession-proof. ucation schools for years. inate the city’s “aid to municipalities” also open their doors. ambitious plans to offer New York Each of these schools says it fills “Part of our intention is to revive funding and does not offset new fed- Despite the Wall Street layoffs area parents new alternatives to the a void. Greenwich, which will cost See PRIVATE on Page 26 eral education aid with state cuts.

February 2, 2009 | Crain’s New York Business | 3 CNYB 02-02-09 A 4 1/30/2009 7:32 PM Page 1

Company delistings on NYSE, IN THE MARKETS Nasdaq head toward peak edited by Erik Ipsen

ing volume,which accounts when a stock closes below Two exchanges for a sizable share of their $1 for a month, the compa- relax their standards revenues, as well as annual ny enters a series of warn- Polo dresses down for the times listing fees. ing periods. It must im- to stem the losses Shrinking listings have prove its stock price or face olo ralph lauren corp., an outfit long associated with taken a toll on exchanges’ SHARES OF possible delisting. the good times,is running a surprisingly good race in bad BY HILARY POTKEWITZ own shares,helping push the MISFORTUNE Former NYSE all-stars times. As Americans trade down, Polo has emerged with price of NYSE Euronext Stocks delisted American International P some of the labels of the moment—value brands such as the nation’s two largest stock ex- and Nasdaq OMX shares from NYSE Group Inc., Citigroup and changes are getting smaller by the day. down 71% and 50%, respec- in 2008 Alcatel-Lucent were among American Living at J.C. At both the New York Stock Ex- tively, over the past year. CBRE Realty the 88 stocks trading below Penney and Chaps at change and the Nasdaq, companies For companies like Finance $5 per share last week. Circuit City Kohl’s—even as its are being delisted at the highest rates Hartmarx Corp., a Chica- Stores in five years as fleeing investors tram- go-based luxury apparel Hartmarx Barely hanging on pricier lines face fierce ple the prices of scores of stocks to lev- maker, even dressing Presi- Stocks delisted the nasdaq also used to headwinds at upscale els below the minimums for trading. dent Barack Obama for In- from Nasdaq send out warnings to com- in 2008 department stores. In response, both exchanges are auguration Day wasn’t panies when their shares “Retail expansion, a scrambling to stem or at least slow enough. Hartmarx’s stock, Atari spent a month below $1. QMed more favorable mer- the tide by relaxing standards on which had been trading on RedEnvelope Among the 76 stocks hang- bloomberg news market capitalization requirements the NYSE since 1945, was Current NYSE ing by their financial finger- chandise mix and strong for the NYSE, and minimum bids delisted on Dec.29 after the penny stocks1 nails last week were shop- brand positioning provide Polo Ralph Lauren with attractive for the Nasdaq. Exchange officials company’s market cap fell Avis Budget ping site and Project Runway long-term growth opportunities,” noted a recent Standard & are also talking with at-risk compa- below the $25 million min- Group sponsor Bluefly.com and nies on a regular basis to gauge their imum. Hartmarx became Borders biotech firm Arrowhead Poor’s report. Group progress. the 54th company kicked Citigroup Research Corp. A big part of the 40-year-old brand’s appeal is its staying “We’re having 10 to 12 conference off the Big Board last year. Current Nasdaq In an effort to keep its power and wide assortment of American-themed products, calls a day with companies, to the Over at the Nasdaq, 2 penny stocks, the NYSE in penny stocks ranging from accessories to home furnishings. True, Polo’s point where I have no voice left by 5 among the 85 companies Avalon mid-January lowered its p.m.,” says Glenn Tyranksi, senior delisted last year were Pharm. minimum market capital- shares have lost 32% of their value over the last year, but that vice president of financial compliance video-game maker Atari Bluefly ization requirement to $15 Casual Male at the NYSE. He adds that the num- and biotech firm QMed. Retail Group million, down from the bar looks great next to Liz Claiborne with a modest 7.7% decline in same- bers of suspensions and delistings are Then there are those that was put in place during and Jones Apparel Group, with de- store sales. With no debt and a bas- 1-Trading below $5 per approaching record levels. companies on the edge of share. 2-Trading below $1 the boom times of 2004. clines of 89% and 79%, respectively. ket case—Borders—for a competi- trouble.The NYSE consid- per share. The Nasdaq,meantime, So far this year, Polo is down 10%. tor, Barnes & Noble is looking Sources: NYSE, Nasdaq Much at stake ers anything trading below suspended its $1 minimum Over the summer, the company better to investors,who have pushed at stake is morethan just bragging $5 per share to be a “penny stock.” bid requirement last October and got a boost as the official clothier of its shares up 9% this year. A January rights. Exchanges depend on listed Penny-stock status can be the pre- has granted its penny stocks a re- the U.S. Olympic team. For the six report showing that fiction reading companies to bring in lucrative trad- cursor to trouble: On the NYSE, prieve though April 20. months ended Sept.27,the clothier’s rose for the first time in more than earnings rose 26% over the year-ear- 25 years may also be helping. lier period. Same-store retail sales, which account for about 40% of revenues, increased 4.6%. On Wednes- Playing defense day,the company is expected to post works well for ITT relatively healthy third-quarter per ® share earnings of 84 cents, a dip of don’t look now, but ITT has picked 20% from the previous year. Polo is up a tailwind.The stock is up 8% in heading into an era of lower profit the past two months. Hard to imag- margins as retailers slash prices. ine that investors think a company —adrianne pasquarelli that gets half its earnings from making night-vision goggles Barnes & Noble and other ain’t dead yet goodies for the military these days, pessimism pays. Way is going to back in October, Barnes & Noble’s do better chief executive, Leonard Riggio, under Oba- warned of the worst retail climate ma. Hard to imagine,too, that its commercial lines will prosper in a recession. But ITT was named last month by Forbes.com as Amer- ica’s best-managed conglomerate, and it boasts a pile of cash and little debt.The recent decision to boost the dividend 22% also helps.This week, bloomberg news ITT is expected to post a fourth- he’d ever seen.Maybe so,but the na- quarter earnings dip of 18%—its tion’s largest bookseller still man- first since 2001—on its way to aged to squeak through the holidays slightly lower 2009 earnings.

DOGS CAN SOAR, TOO

Moves in Washington to pass a huge economic stimulus package +11% and talk of a wider bank +9% +9% bailout helped three of last year’s biggest losers take flight. Sirius XM CIT Group Ann Taylor

4 | Crain’s New York Business | February 2, 2009 CN012710 1/23/09 2:02 PM Page 1

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WANT TO RECEIVE NEW YORK'S NEWEST NEW YORK,NEW YORK SMALL BUSINESS edited by Valerie Block RESOURCE? Bloomberg LP’s new game loomberg lp is creating a product dedicated to the one subject that excites its mostly male Bcustomers almost as much as money. No, not that. Sports. According to an e-mail from a staffer working on the project, Bloomberg is developing a SIGN UP TODAY FOR CRAIN’S baseball news feed and database that should be rolled out on its FREE SMALL BUSINESS ALERT. terminals during the next Major This twice-weekly email will deliver news and information to League Baseball season.The e-mail New York's small business community. Features will include: asks recipients to fill out a survey to help with the project’s design. Small business success stories Other sports will follow, the e-mail says. The sender, Stephen Small business breaking news Company profiles Orban, who works in research and development, declines to comment. Resources for doing business in New York The subscription service is being developed for both baseball executives and fans active in fantasy leagues. It will provide Sign up at crainsnewyork.com/signup statistics, valuations and other research about players like Yankee Derek Jeter (left) and Met David Wright. Bloomberg has been looking in the past year for ways to diversify [small business] its business as the financial firms that are its chief customers cut jobs— and terminals—by the thousands. A Bloomberg spokeswoman did not return phone calls or respond to an e-mail request for comment. is our Business. bloomberg news David Rockwell has shrunk the The group will renovate the Radio DJ kitchen that used to block the space after it wraps up a $1.4 turns on TV picture windows.The kitchen has million capital campaign. “It may also been enclosed, with just a be a crazy time to raise money, but hot 97’s Angie Martinez (below) is narrow opening offering a glimpse we’re feeling confident,” says heating up the small screen. BET inside. Assistant Director Zach Layton. has ordered 40 episodes of the Though the new location is “We are poised to take a major afternoon disc jockey’s Angie twice the size of A Voce’s current step forward.” Martinez Show. The pop- spot near Madison Square Over at 160 Schermerhorn St., culture gabfest first aired Park, Missy Robbins, the Brooklyn Ballet this month on BET on Nov. 24. executive chef of both will start building a 2,000-square- The pilot, eateries, is undaunted by foot theater, where it will stage featuring interviews the challenge of filling performances and offer classes. with Jay-Z, LL Cool J the 230 seats. “You have The theater will be in the and Marc Anthony, to be smart in how you storefront space of an affordable- attracted 1.5 million plan your menus,” says housing residence. viewers, Ms. Robbins, who outperforming replaced Andrew Carmellini Contributors: Lisa Fickenscher, Matthew regularly scheduled four months ago. “We are Flamm, Miriam Kreinin Souccar programming in the being very conscious of time slot. Produced by what we are selling and United Entertainment pricing.” HIGH TEA Group and Queen Latifah’s Flavor This week, the downtown Unit, the half-hour show will location is introducing a $29 prix FASHIONISTAS who deign to appear on Mondays at 11:30 p.m., fixe three-course lunch menu. dine during Fashion Week can starting March 2. Mariah Carey, Eve, head to The Berkeley Hotel’s Rihanna and Big Boi are “close” to Pret-a-Portea at Bergdorf Good- signing up for the debut, one of Arts groups’ man for London’s famed high- the producers says. ambitious plans tea service. Open to the public Despite her TV triumph, for the first time Feb. 13-20, the camera-ready Ms. Martinez will the brooklyn academy of $60 menu includes Michael hold on to her day job at the radio Music isn’t the only arts group in Kors- and Chanel-inspired treats station. the borough embarking on and a glass of champagne. ambitious expansion plans.Two smaller institutions are building Dining room new homes despite the recession. with a view Avant-garde performing arts company Issue Project Room just the new A Voce opening in the signed a 20-year lease for a 5,000- Time Warner Center this spring square-foot theater at 110 in place of Café Gray will give its Livingston St., the former Board diners something that chef Gray of Education headquarters. It won Kunz’s customers lacked—a a request for proposals issued by stunning view of Columbus Circle the city and Dumbo developer and Central Park. David Walentas, beating out 100 Prolific restaurant designer other hopefuls.

6 | Crain’s New York Business | February 2, 2009 Project1 12/23/08 3:36 PM Page 1 One team, twice as strong.

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*As seen in Barron’s on 9/8/2008. Barron’s is a registered trademark of Dow Jones. Wells Fargo Wealth Management Group provides financial products and services through various banking and brokerage affiliates of Wells Fargo & Company, including Wells Fargo Investments, LLC (Member SIPC). Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wells Fargo & Company providing certain retail securities brokerage services: Wachovia Securities, LLC, and Wachovia Securities Financial Network, LLC, Member SIPC. ©2009 Wells Fargo Bank, N.A. All rights reserved. 1208-0717 DDB-294PCS CNYB 02-02-09 A 8 1/30/2009 1:51 PM Page 1

Once-bustling W. Broadway turns into retail afterthought

Asking rents in SoHo dropped ny is clearing its shelves,breaking its Losing tenants 4% last year, according to Cushman 10-year lease and ceasing operations as merchants follow & Wakefield, but West Broadway’s in this country. rents still remain high compared “The game plan is to try and find customers to B’way with those on Broadway. While a new tenant,” says Sophie Morice, rents on Broadway start at about president of Satellite’s U.S. division. BY ADRIANNE PASQUARELLI $500 a square foot, West Broadway With her rent at a rel- rents can range up to $650, say real atively inexpensive two years ago, upscale shoe store estate sources, who add that nearer $400 a square foot, Té Casan seemed like a perfect fit $300 would be more realistic. Ms. Morice hopes for West Broadway. The retailer that another mer- built out a dazzling 5,500 square feet Calling it quits chant will see value in on the downtown corridor for its a number of retailers have al- the space. first boutique and promoted limit- ready called it quits. Women’s ap- Detour’s spot ed-edition footwear from celebrities parel specialist Sigrid Olsen shut- across the street is also like Natalie Portman. tered last year, and others, said to be available. But even Ms. Portman’s vegan including Té Casan, Salviati and The clothier’s owner pumps were not enough to save the Sub Chrono, followed in the past did not return calls re- shop. It closed last month, creating few months. Many others are hav- questing comment. yet another vacancy on what used to ing problems. But storefronts be a prime SoHo block. Clothing shop Big Drop, which have few takers, and NOT A GOOD FIT: Thinner crowds and lower West Broadway between has been at 425 W. Broadway since brokers say rents must sales have made it tough for businesses like Broome and Prince streets has long 2002, is attempting to renegotiate come down or the Satellite Jewelry, Té Casan and Big Drop. been losing its edge to resurgent big its 10-year lease at a rent decrease once-vibrant artery sister Broadway, which boasts of 50%. If an agreement with the will become a ghost Bloomingdale’s, popular chain landlord can’t be reached, the town. ly comparable to a stores like Sephora and the soon-to- 1,500-square-foot boutique will be “[These retailers] can’t support shopping thor- by buckphotos ennis open Topshop.Now,between grow- forced to vacate the space. Business the rents,” says Neal Ohm, a broker oughfare like West Broadway, once retail hub. Big draws include furni- ing vacancies—nearly a dozen is off sharply at the SoHo loca- with CitySites Commercial Realty. a sure thing and still the address of ture store CB2 and Asian goods properties on the market, at last tion—the worst performer of Big Emporio Armani and DKNY. purveyor Pearl River. Via Spiga, a count—souring sales and less foot Drop’s four stores, according to a Empty spaces But even those high-profile shoe store that had been on West traffic, the West Broadway strip has co-owner, who did not want to be empty retail space in SoHo isn’t names can’t make the street a desti- Broadway for several years, moved become downright dreary. named. limited to West Broadway. Depres- nation, particularly when pitted to Broadway and Broome in 2008. “Unless there’s some compelling Other boutiques are not even sion Modern,a pricey furniture store against the always-packed Apple “Broadway has everybody,” Ms. reason to walk along West Broad- trying to cut a deal. Satellite Jewel- that had been at its Sullivan Street’s store, on Prince Street, and Top- Podell says. “If you’re paying the way—some anchor—it’s tough,” ry opened its 500-square-foot bou- location for 30 years, and Italian shop,which will be the British com- same rent, would you stay on [West says Joanne Podell, executive direc- tique at 412 W. Broadway three knitwear purveyor IC Zinco on pany’s only U.S. store. Broadway] or would you go to tor of retail services at Cushman & years ago. Now, faced with dwin- Mercer Street have exited over the Stealing still more shoppers, Broadway, which is where the foot Wakefield. dling sales, the Paris-based compa- past few weeks. Yet Mercer is hard- south Broadway has emerged as a traffic is?”

NEIGHBORHOOD JOURNAL

$195 million—about $87 million over budget. Mets beat Yankees in stadium game “If the Yankees really wanted to be a good corporate citizen, they to have the whole stadium down by hopes will hit the asphalt. They in- YANKEE STADIUM still could use their power and their All of Shea should the April 13 home opener against clude the appearance of the black cat stands, delaying the resources to move along the be down by home the San Diego Padres. credited with turning the tide creation of local parks. process,” Ms. Craytor says. Not everyone is delighted to see against the Cubs in 1969 and Mike The Yankees pledged an opener; honorary the 44-year-old stadium make way Piazza’s walk-off homer in the first additional $10 million to the for the team’s new home next door. game back after Sept. 11. Department of Parks & markers in parking lot “I’m excited to see Citifield com- “Most of all,I hope they mark the Recreation last month, ac- ing,” says Matt Cerrone, founder of spot where the ball went through cording to a team spokes- n new york’s megadollar Metsblog.com, who made a trip to Bill Buckner’s legs in 1986,” says woman. Truth be told, three stadium deconstruction see the demolition firsthand last Mr. Cerrone. acres of new parks have al- game, it’s no contest. Flush- week. “But seeing it become a shell —matthew sollars ready been developed in the

ing’s finest have a command- of what had been and the reality that bloomberg news area, and the 14-acre Mullaly ing lead,and they’re bringing I’ll never be going back into that Bronx’s surprisingly Park upgrade was completed Iin their closer. place, it’s sad.” that encourages green development last spring. As of last week, only the slice of Mr. Cerrone says that having the enduring landmark and community parks. Roughly 22 The new parkland includes two Shea Stadium behind home plate stadium go before the season arrives acres were bulldozed to make way new baseball fields already in use, remained standing. A Mets is probably for the best. Despite two after the final game at Yankee for the new stadium under an agree- one at nearby P.S. 29 and another spokesman says the club is on track late-season swoons in a row at Shea, Stadium, fans snatched up handfuls ment that some of the parks would farther north at the West Bronx walking past the old of infield dirt to sell on eBay for be replaced and others enhanced by Recreation Center, just below the SHEA place before every $125 a jar. They also took parts of 2010. The parks part of the project Cross Bronx Expressway. Overall, STADIUM’S game this year would seats and even strips of clubhouse is behind schedule, too. the community will be getting 27 demolition is just be too painful. carpet to sell on auction sites.Mean- “The Yankees moved into their acres of parkland, about 10 more well-advanced. The Mets plan to while, players and team officials new offices the other day, but the acres than it had before,according to honor their first took away lockers, clubhouse deco- community and the taxpayers have the Parks Department. home field with rations and even some bleachers. been without their parks for The delays primarily concern the markers on the park- And that’s as far as the demoli- months,” says Ms. Craytor. three turf fields, a 400-meter track, ing lot that will re- tion of Yankee Stadium ever got, Two baseball seasons may pass and 16 tennis courts, 12 of which will place it, but the team which is precisely why community before residents in the South Bronx be enclosed in a bubble for year- is low on details. Mr. leaders are crying foul. have that grass back. Last week, the round use. Construction on most of Cerrone has a list of “It’s extremely frustrating,” says Independent Budget Office not those features has not started,because great moments in Miquela Craytor, executive director only made the delay official, it also the old stadium is still in the way.

matt cerrone matt Mets history he of Sustainable South Bronx,a group said that the parks’ costs will soar to —hilary potkewitz

8 | Crain’s New York Business | February 2, 2009 CNYB 02-02-09 A 9 1/30/2009 3:07 PM Page 1

about 3,000 a year from ulcers.” other negative ef- He finds Dr. Blaser’s work show- WHAT SENDS KIDS TO HOSPITALS fects. In addition New asthma culprit? ing an asthma link intriguing,saying to being linked to that “it fits with a concept that’s been Causes of hospitalization in New York City. asthma, its disap- Continued from Page 2 prove his theory by swallowing lique- developing over the last 20 years that Asthma 9,891 pearance might be seen as mostly good news, because fied Helicobacter. He got sick, prov- the immune system works better if connected to the H.pylori,which infects the digestive ing that—contrary to common sci- exposed to nasty organisms.” Injuries 6,836 rise in food aller- tract, can cause ulcers and stomach entific belief at the time—the Pneumonia 5,338 gies. The bacteri- cancer.But the new research links H. bacterium could live in stomach acid. Balancing relative risk um may also be in- Bronchitis 4,651 pylori’s decline to the increase in Though it took more work to but dr. marshall is reluctant to terfering with asthma, and that presents public prove the link to ulcers and stomach endorse the prediction that children Mental disorders 2,581 hormones that health officials with a conundrum. cancer, by the time Dr. Marshall got will one day routinely be infected Perinatal conditions 2,069 regulate fat stor- istockphoto Three studies by Dr. Blaser and the Nobel, his theory had become with H. pylori as a health measure. All statistics are for 2000. Source: City Department of Health and Mental Hygiene, May 2003 age and thus con- his colleagues have shown that peo- part of medical school curriculum. Though he agrees that heartburn tributing to the ple infected with a particular strain In a phone interview from his lab and esophageal disease are on the obesity epidemic. of H. pylori are far less likely to get at the University of Western Aus- rise, he points out that they can be might have had a useful purpose, Humans have lived with H.pylori childhood asthma. In an article tralia in Perth, Dr. Marshall said controlled with diet and medica- [but] in the 21st century, it does for at least 50,000 years, Dr. Blaser published in the July Journal of Infec- that in the past decade, the discov- tion, while stomach cancers cannot. more harm than good.” says, and “we should expect there tious Diseases, Dr. Blaser presented ery has saved “maybe half a million “Better off to get rid of it,” Dr. But Dr. Blaser says he thinks would be consequences of eliminat- data showing that kids were 59% deaths from stomach cancer and Marshall says. “In the Stone Age, it eradicating H. pylori could have ing such an old arrangement.” less likely to have asthma if they carried the bacterium. Irritants and allergens trigger asthma attacks; New York neigh- borhoods, particularly poor ones, tend to be full of them.That explains why rates of childhood asthma in the Bronx and Harlem are higher A partner A champion than those in Manhattan. But Dr. is good. is better. Blaser says that when H. pylori infection began to go down, children’s immune systems became more likely to overreact to triggers. Dr. Blaser says H. pylori infection causes the stomach lining to produce more T cells—key players in immunity. He is so convinced of the asthma link that he envisions a day when doctors will routinely in- fect children with H. pylori to let Paradoxically, a bug that causes cancer may help It’s your company’s money. fight asthma Make it work as hard as you do.

their immune systems function better. When they reach adulthood, he says, they could be given antibiotics to eliminate the bacterium. Now, more than ever, maximizing your cash ﬂ ow is critical. At Citibank, our Not everyone is persuaded by Dr. knowledgeable bankers will listen to your needs and get you started with the right Blaser’s research. “I’m not blown away by the checking account. Add to that our best-in-class online banking and cash management [NYU] studies,” say Mount Sinai solutions, and you’ll see how Citibank can make a difference. asthma researcher Dr. Beth Corn, who says that while many investigations have shown sterile environ- Now you can get your money working for you faster with a free remote check ments result in higher rates of asth- scanner and three months of free service. Stop by a Citibank branch today or call ma, she’s not convinced H. pylori is the sole culprit. 866.801.4705 to take advantage of this limited-time offer. Unintended consequences but researchers who specialize in LIMITED-TIME BUSINESS BANKING OFFERS H. pylori agree that its elimination is having unintended consequences with minimum with a new Business and that those might include more FREE balance FREE Checking account, and requirement. receive three months asthma. Scientists have known for CHECKING CHECK SCANNER free service. years that the bug reduces the amount of acid that the stomach pro- duces; its absence results in an increase in acid that can cause chronic heartburn—known medically as gas- troesophageal reflux disease—and cancers of the esophagus. “Helicobacter poses a public health paradox,”says Dr.Barry Mar- shall, an Australian researcher. In 2005,he and Dr.Robin Warren won the Nobel Prize for Physiology for proving that H. pylori infection— Offer applies to new CitiBusiness Streamlined Checking accounts and Remote Check Deposit services opened between 1/12/09 and 2/28/09. Free checking means no monthly fee if the average monthly checking balance is at not stress—was the main cause of least $5,000, and includes up to 200 free transactions per month, including deposit tickets, deposited items, checks and incoming ACH debits and credits. Other fees may apply. Offer can be modified or withdrawn at any time peptic ulcers and stomach cancer. without notice. Offer good only for accounts maintained in Citibank branches in New York, New Jersey, and Connecticut. All accounts are subject to approval. ©2009 Citigroup Inc. Citibank, N.A. Member FDIC. Citi, CitiBusiness In 1984, Dr. Marshall helped and Citibank and Arc Design are registered service marks of Citigroup Inc. Citi never sleeps is a service mark of Citigroup Inc.

139477_1A1_v3.indd 1 February 2, 2009 | Crain’s New 1/8/09York Business 8:34:43 PM | 9 CNYB 02-02-09 A 10 1/29/2009 8:42 PM Page 1

VIEWPOINT NY’s economic success stories editor in chief Rance Crain publisher, vp Jill R. Kaplan elieve it or not, there is good news about employ thousands of support people who have earned more editorial director Greg David the New York economy. Although we’re in modest degrees. EDITORIAL editor Xana Antunes the worst national economic downturn THE LESSON: Help universities expand.Too few politicians managing editor Robert Hordt since the Great Depression, three industries were willing to publicly support Columbia University in its deputy managing editors Valerie Block, Erik Ipsen in the city are doing well. And therein lie a multiyear effort to win approval for a new campus in West contributing editor number of important public-policy lessons. Harlem, despite the project’s enormous potential for the Elizabeth MacBride SUCCESS STORY: columnist Alair Townsend The movie and TV economy.The opponents may have been loud, but they put senior reporters Theresa Agovino, business is thriving here. Last year, employment in this parochial interests above the needs of all New Yorkers.The Aaron Elstein, Erik Engquist, Lisa Fickenscher, segment grew an impressive 9%, adding 3,000 jobs. On the scenario threatens to repeat itself on the West Side, where Matthew Flamm, Miriam Kreinin Souccar B reporters Barbara Benson, Amanda Fung, basis of percentage growth, this was the best-performing Fordham University is Daniel Massey, Adrianne Pasquarelli, sector of the economy. In the past several years, Silvercup mired in another battle Hilary Potkewitz, Gale Scott, Matthew Sollars Movie/TV sector, restaurant critic Bob Lape and Kaufman Astoria studios in Queens have thrived, as has in which the city’s art director Steven Krupinski a new facility, Steiner Studios in Brooklyn, which was once future is at stake. deputy art directors Carolyn McClain, higher education, Daniel Mednick seen as a threat to existing facilities. Most of the benefits go SUCCESS STORY: The staff photographer Buck Ennis to people in high-paying blue-collar jobs—electricians, telecom all have telecom business is hot copy desk chief Wendy Zuckerman copy editor Thaddeus Rutkowski painters, set builders.The studios, all located outside lessons to teach again, adding 1,200 jobs research editor Denise Southwood Manhattan, are expanding, despite the rocky credit markets. last year in what was www.crainsnewyork.com THE LESSON: web editor Brian Tracey Tax incentives work.The boom in the movie the third-best senior producer Elisabeth Butler Cordova and TV business is directly traceable to a tax incentive performance among all producer Kira Bindrim offered by both the city and the state that offsets the higher sectors.The wireless EDITORIAL AND ADVERTISING OFFICES costs of producing shows in New York. Last April, the city phone companies continue to do well, but the big gains here 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 increased its tax break to 30% of production costs. As a are in jobs that Verizon is adding as it rolls out its cable TV advertising: 212.210.0259 result, Ugly Betty—a TV show set in New York that had service in the city and surrounding areas. Cable craincom nyk Fax 212.210.0499 THE LESSON: been filmed in Los Angeles—moved here. It was one of Foster competition. With implacable Entire contents ©copyright 2009 Crain Communications Inc. All rights reserved. several shows that recently brought their work to the Big opposition from New York’s two most powerful cable ®CityBusiness is a registered trademark of MCP Apple. companies,Time Warner and Cablevision, the Bloomberg Inc., used under license agreement. SUCCESS STORY: Colleges, universities and professional administration dragged its feet on allowing Verizon to enter TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. schools will be bulwarks during the downturn.The higher- the market.That changed when Deputy Mayor Robert $3.00 a copy, $59.79 one year, $109.79 two years. education field now employs more than 91,000 people in Lieber came on board, and the results are obvious.This www.crainsnewyork.com the city and is likely to add jobs, as enrollment swells dur- lesson should be applied in other ways, such as opening up ADVERTISING AND MARKETING ing the recession.This group, more than almost any other, competition in the liquor business and allowing Wal-Mart senior account managers Cornelius P. Gore, William E. Squitieri can provide good jobs for the middle class. While to enter the city, to name only two of the most obvious commercial real estate sales manager professorships may require advanced training, schools possibilities. Cory Marks account executives Irene Irvill, Courtney McCombs, Anthony Mowad sales manager, classified print & online John Gallagher LETTERS TO THE EDITOR sales coordinator, print & online Lulé Haznedari sales coordinator Anita Perrino credit Todd J. Masura 313.446.6097 marketing director Amy Crossman Don’t forget NY’s many nonprofits marketing manager Jill H. Bottomley circulation manager Andrea Richardson assistant circulation manager NEEDS ARE GROWING, BEER BELONGS escape the tax, we would Rosalie Ford RESOURCES SHRINKING IN BRASSERIES have to both increase the general manager, interactive fruit juice to 70%, which Marc Minardo the jan. 19 crain’s chart “A i completely would ironically make web developer, interactive Chris O’Donnell wish list for the new president” enjoyed the Jan. 19 Fizzy Lizzy more featured only a single nonprofit, the story on Daniel fattening, and reformulate NEW YORK PRODUCTION New York Immigration Coalition. Boulud’s new it as a “noncarbonated production and pre-press director As the “umbrella” organization for restaurant, although beverage.” Michael Corsi New York City metro area I probably won’t be Also, Marion Nestle’s advertising production manager nonprofits—with over 1,800 able to afford to eat comment that Fizzy Lizzy Suzanne Fleischman Wies member organizations serving there. Damn! is on a continuum PUBLISHED BY CRAIN COMMUNICATIONS INC. millions of New Yorkers—we know It’s absolutely between “real food and chairman Keith E. Crain the truly perilous situation those on appropriate for les junk food” surprised me. president Rance Crain the front lines face in meeting the brasseries to serve She praised Fizzy Lizzy in secretary Merrilee Crain needs of those they serve. beer.The name her 2006 book, What to treasurer Mary Kay Crain executive vp, operations William Morrow “What they’re looking for” is itself means Eat, noting that Fizzy senior vp, group publisher Gloria Scoby simple: money to support their “brewery” (it has to buck ennis Lizzy does its job of group vp, technology, circulation, BEHIND NEW BEER SPOT: Colin Alevras (left) and Daniel Boulud. programs, particularly those do with all that providing a healthier soda manufacturing Robert C. Adams involving human services. Crain’s shiny brass), and (her term) “quite nicely.” vice president/production & has been exemplary in covering the the restaurant style was imported HEALTHY SODA, Given the fact that Fizzy Lizzy manufacturing David Kamis nonprofit sector. Please don’t to France from Belgium. In NOT JUNK FOOD contains nothing more than juice, chief information officer Paul Dalpiaz forget it now, when needs are Parisian brasseries, beer is served carbonated water, vitamin C and corporate circulation director Patrick Sheposh ballooning and resources are alongside sparkling wine with an “insider” item from Jan. 19 in some cases natural flavor, I’m at shrinking. seafood—such restaurants’ needs some clarification. Our a loss to figure out just where the founder G.D. Crain Jr. (1885-1973) michael clark specialty. Fizzy Lizzy drink is subject to the junk is. chairman Mrs. G.D. Crain Jr. (1911-1996) President Ah, to be in Paris again. Damn governor’s proposed obesity tax liz morrill Nonprofit Coordinating Committee recession. because it is carbonated and Founder and chief executive of New York alan (max) metrick therefore classified as soda.To Fizzy Lizzy

10 | Crain’s New York Business | February 2, 2009 CNYB 02-02-09 A 11 1/29/2009 8:35 PM Page 1

provide assistance to the ailing media industry, à la France, it just No rescue plan wouldn’t work. To be trusted, journalism must be objective. If the government began paying the bills, how could the for newspapers public be sure that political coverage would be unbiased? Certainly, the recent bailouts of the financial and n the past few months, the United States has bailed insurance industries haven’t deep- out bankers,car companies and insurance giants deemed ened the public’s trust in those insti- too big to fail. But what about the newspaper industry? tutions. The media industry is already Are our newspapers too important to fail? Can a democ- seen as too deeply embedded with racy function without a vibrant free press? the corporations that own many of French President Nicolas Sarkozy recently announced a plan our newspapers and TV news oper- I ations. Adding government to the to save his country’s papers, guaranteeing advertising and shar- list would further compromise a weakened image. ing the cost of providing free sub- say, the compact disc or the 30-sec- Ultimately, America is all about scriptions for young people, to get ond TV spot—we all know that progress, and if the media’s current them into the newspaper habit. MP3s are replacing CDs, and any- iteration can’t keep up, it will be re- The situation here is dire, too. one with a Tivo just skips the ads. placed. I expect professional jour- Papers from New Jersey President Barack nalism to survive as major brands to Seattle are under Obama often bypasses like The New York Times make the pressure. This past fall, traditional media to get painful transition to the Web. the Newark Star-Ledger his message across, But many local news outlets will was forced to lay off posting Web-ready dry up for lack of funds, leaving nearly half of its staff to videos on the adminis- much of that work to community survive. Among other tration’s redesigned groups, bloggers and citizen jour- money-raising meas- White House Web site nalists. They are already picking up ures, The New York and on YouTube. It’s a the slack, covering local issues. On Times went hat in hand strategy his team car- the flip side, consumers have been last month to a Mexican ried over from the cam- seeking out these newer sources as fonyc_2cx4.ai 1/8/09 3:08:27 PM billionaire to get a $250 VALERIE paign, when they used they grow less trusting of big media. million infusion. Publi- the Internet to connect There are concerns over journal- cations are outsourcing BLOCK with millions of young istic integrity and objectivity, and international coverage adults, who helped bloggers have been outed for accept- because they can no sweep him into office. ing gifts or special treatment for longer afford to maintain foreign The president is, of course, not coverage. We can’t assess the dam- The bureaus. Every day,more journalists alone among politicians using the age until we see how the system lose their jobs. Web to provide an “unfiltered”mes- evolves. So, what about a government sage to the public. Hillary Clinton, Meanwhile,let’s keep our eyes on rescue? who might be considered old- France. If those 18-year-olds start FUTURE Far from considering a bailout, school, announced her candidacy reading print, American news or- our politicians are making tradi- for president on her Web site. ganizations might consider handing tional media appear as vibrant as, But even if the government did out a whole lot of free subscriptions. of NEW James Brady:an appreciation YORK A CRITICAL DISCUSSION WHAT’S HAPPENING.

Longtime journalist and Crain’s New York Business columnist James Brady WHAT THE FUTURE HOLDS. died last week at age 80. CITY WHAT CAN BE DONE. hen rance crain decided to start Crain’s New York Business in 1984, he knew he JOIN THE CONVERSATION | TUESDAY, FEBRUARY 3, 2009 needed a name columnist to give the paper for more information, visit credibility and attract readers. He didn’t have to look far, because he futurenyc.crainsnewyork.com hadW already hired the noted writer James Brady—a star in the city’s media circles for his writing and business-side roles at

Women’s Wear Daily and in Rupert George W. Bush, a sign of how his Murdoch’s publishing empire—to liberal views meshed with those of write a weekly column for another most New Yorkers.I always believed Crain title, Advertising Age. In re- the strength of his column was his counting the story, Jim often told unmatched knowledge of 50 years me that he wasn’t exactly asked to of fashion, media and sports in the

double his Crain’s workload. Rance city. He gave Crain’s a depth we buck ennis just assumed that he would. would have otherwise lacked. For the next 21 years, Jim filled Now that I have been around asperate readers. this space in Crain’s every week.If he New York for a while, I use Jim’s I have also worked very hard over went on vacation,he always wrote in work as a role model for my col- my career to match the seamless, advance. He even filed by his dead- umn, which runs on this page. I de- smooth and seemingly effortless prose line the week he suffered a stroke. fine my mission as using what I Jim could create in almost no time at He wouldn’t think of not writing. know about the economy, politics, all. I still have quite a ways to go. Jim always got the biggest re- business and journalism to provide —Greg David sponse for his columns attacking context, inform, prod and even ex- editorial director

TO HONOR JIM, we’ve posted some of his notable columns from the past decade at www.crainsnewyork.com/jamesbrady

February 2, 2009 | Crain’s New York Business | 11 CNYB 02-02-09 A 12 1/30/2009 2:40 PM Page 1

approval rating has dropped, and Mr.Thompson is trailing Mr. WINNERS & LOSERS Weiner by about 5 percentage Stimulus Edition THE INSIDER points among city Democrats. CONGRESS IS CLOSING IN on a stimulus package. Last week, the House Like Mr. Cuomo, Nassau passed a bill worth $819 billion. The Senate still has to pass its own version, County Executive Tom Suozzi is a and a compromise bill must be drawn up. But the differences are not vast, by Erik Engquist and Matthew Sollars popular white Catholic who has and the legislators have reached consensus on many of the main elements. run for governor; he went up Here are some early winners and losers. against Eliot Spitzer in 2006. But he does not seem inclined to take on WINNERS Mr. Paterson. Mr. Suozzi was the Sen. Charles Schumer For the past few weeks, Mr. only losing contender for the U.S. Schumer has been traveling across the state, sprinkling Senate seat who showed up to federal stimulus dust on beleaguered officials. Last week, cheer Mr. Paterson’s appointment he was at City Hall, pledging more than $3 billion to Mayor Kirsten Gillibrand of . Michael Bloomberg to help with the city’s yawning budget Insiders expect that Mr. Paterson gap. Earlier in the month, he was in Albany Schumer will ask Mr. Suozzi to be his running with Gov. David Paterson, outlining plans to allot mate in 2010, in part to inoculate $6 billion to the state’s schools. himself against a Cuomo bid. bloomberg news Rep. Jerrold Nadler The Manhattan Democrat pushed through an amendment that could add $3 billion to the tally 2009-10 election flowchart Candidates’ being spent on mass-transit infrastructure projects. Earlier last week, advocates were bemoaning the espite gov. david paterson’s recent struggles, poll positions Nadler paltry allocations for transit projects. The Democratic strategists don’t believe that he will be last week, for the first time, a poll figure is still low—$12 billion, versus nearly challenged by state Attorney General Andrew Cuomo forecast a close race for mayor this $30 billion for highways—but straphangers nationwide are D year. A Baruch College survey for now singing Mr. Nadler’s praises. in the 2010 Democratic primary. Political etiquette discourages NY1 showed Rep. Anthony Weiner, Hospitals The bill contains more than $80 billion in primary challenges of incumbents, and Mr. Cuomo does not D-Queens, within 7 percentage Medicaid funding, and Assembly Speaker Sheldon Silver points of Mayor Michael Bloomberg. told hospital executives last week that New York’s share of want to destroy the relationship he has rebuilt with African- Silver American leaders since his ill-fated fight with Carl McCall in But two days later, a Quinnipiac that money should be used to offset proposed health University poll showed Mr. care cuts. the 2002 gubernatorial race. Bloomberg leading by 50% to 35%. But if Rep. Anthony Weiner defeats city Comptroller William When asked to explain the LOSERS Thompson in the 2009 mayoral primary,“all bets are off,” one discrepancy, Baruch poll director Rep. Peter King The Long Island Republican toed the party Democratic consultant says.Two polls last week indicated that Mickey Blum noted that her numbers line and voted against the stimulus package—even though it for Mr. Weiner were virtually if the election were held today, Mr. Weiner would indeed win. included $80 billion in new Medicaid funding, something Mr. identical to Quinnipiac’s. However, King has long pushed for. The vote could hurt him in 2010, her poll found that only 43% of city when he may challenge Sen. Kirsten What does the mayoral race margin of votes in New York City, voters back Mr. Bloomberg, while Gillibrand or make a run for governor. have to do with Messrs. Paterson the governor would have little reporting far more undecided King Rep. Charles Rangel and Cuomo? Insiders say that a chance to defeat a candidate like voters than the Quinnipiac poll. He was frozen Thompson loss to Mr. Weiner Mr. Cuomo, who has an edge both “It’s just early,” says Ms. Blum, out last week when the Obama administration signaled would demonstrate the weakness of upstate and in the suburbs. who notes that voters’ opinions are support for a one-year patch to the alternative minimum tax the black vote, which is crucial for Recent polls are not not strongly held nine months proposed by Sen. Chuck Grassley, R-Iowa. Protecting Mr. Paterson. Without a healthy encouraging for Mr. Paterson. His before an election. At the same middle-income New Yorkers from the tax has been Mr. Rangel’s top priority since he became chairman of Ways and Means in 2007. Rangel While it’s true that the administration is trolling for Republican support in the Senate, ignoring Mr. Rangel on his key issue indicates that questions about his tax returns and fundraising activities still bog him down. Construction industry The measure will bring more Grassley than $3 billion to New York’s construction sector. Not bad, but after tax cuts, aid to states and other spending items are factored in, it’s a much smaller share of the pie than industry members had hoped. They’ll also be hard-pressed to spend the money quickly enough: The House bill includes a “use-it-or-lose-it” provision requiring that 50% of the funds be spent within 90 days. Gov. David Paterson The growing stimulus program makes it much more likely that the state Legislature will reject many of the governor’s budget- cutting proposals. If Mr. Silver insists that Medicaid and education stimulus funds be used to defray cuts in those areas and adds a millionaire’s tax, the state’s budget deficit is nearly gone. bloomberg news/getty images

point in 2005, she recalls, Fernando Environmental Advocates of New Ferrer was leading Mr. Bloomberg York. “It raises the question, in the polls. however, of why the government is incentivizing driving to work.” Commuter tax put into neutral Bridging the gap in MTA rescue plan transit advocates are cheering a move by Sen. Charles Schumer,D- in several trips to Albany in the N.Y., to give commuting by mass past few weeks to push his transit a tax break equal to that for Metropolitan Transportation commuter parking, but they say it Authority rescue plan, former doesn’t go far enough. Mr. MTA Chairman Richard Ravitch has Schumer’s provision in the stimulus found many Democratic legislators bill would increase to $230 a month who agree that money from the pretax money that commuters motorists must be part of any can use for transit fare—nearly solution. But the lawmakers are doubling the figure, and matching looking for alternatives to East the tax break given to drivers who River bridge tolls. Some prefer a pay for parking. gas tax increase, while others want “It’s great,” says Robert Moore of to revive congestion pricing.

12 | Crain’s New York Business | February 2, 2009 CNYB 02-02-09 A 13 1/29/2009 8:35 PM Page 1

REAL ESTATE DEALS

li. Mr. Ravesloot adds that the space Harlem housing complex goes green was built out perfectly for the law firm’s needs. Meanwhile, Chris Mongeluzo Bath on the Upper West Side. The brand as a luxury retailer.” entire 11th floor, was $70 a square and Eric Zemachson of Newmark Buyer of W. 135th St. SoHo store will be the company’s —adrianne pasquarelli foot. The firm is moving from 100 Knight Frank represented Triton buildings will follow first wholly owned showroom here. Park Ave.,where it has about 15,000 Media, which is moving to 220 W. “They wanted to make a big square feet. It is taking over the 42nd St., between Seventh and up with eco-upgrade statement with the brand by locat- Law, media firms: space from Triton Media, and plans Eighth avenues,where it already has costing $4 million ing in SoHo,” says Michael common purpose to move in the middle of this month. two floors. The asking rent at the Glanzberg, the principal at Sinvin A key selling point for the new building is between $60 and $65 a n affordable housing Realty who,with colleague Christo- law firm Watson Farley & space is that it allows Watson Farley square foot. It is owned by Para- complex is set to go pher Owles, represented both Scav- Williams has signed a seven-year staffers to work on one floor and still mount Group Inc. but net leased to green now that it has olini USA and the seller. “Even if sublease for 23,000 square feet at to have room to grow, says Mark Live Nation. been acquired by an in- [international tourists] are not nec- 1133 Sixth Ave., between West 43rd Ravesloot, a broker at CB Richard Mr. Mongeluzo represented the vestment fund specializ- essarily buying kitchen products, and West 44th streets. The asking Ellis Inc., who represented the firm landlord in the transaction. Aing in transforming buildings into they’re seeing and experiencing the rent for the deal, which covers the with his colleague William Iacovel- —theresa agovino environmentally friendly properties. The Rose Smart Growth Invest- ment Fund I bought 198 units of affordable housing and about 4,500 square feet of retail space at 107-145 W. 135th St. in Harlem for $26.5 million. The 10 six-story elevator buildings are located between Adam Clayton Powell Jr. Boulevard and Lenox Avenue. This is the fund’s first purchase in New York City and the sixth overall for the investment vehicle started by developer Jonathan Rose two years Mobilebile Broadband.Bro ago. Mr. Rose says the fund plans to invest $4 million over the next two Take your business mobile. years on improvements to make the buildings more environmentally With high-speed wireless Internet from Verizon Wireless, friendly. Eco-upgrades will include your small business can be the productivity powerhouse replacing inefficient old boilers, weather-stripping windows and us- you want it to be. Get more done on the go — connect to ing nontoxic paints. the Internet, access email, download files and more. All on Mr. Rose says the improvements America’s Largest and Most Reliable 3G Network. Talk to a should lower operating costs by 10% Small Business Specialist today to find the right Mobile within a year. Broadband solution for your business. Unlike most recent buyers of affordable housing, Mr. Rose says he has no plans to turn the complex into a market-rate property. On the contrary, the complex’s federal affordable housing contract was ex- piring, and Mr. Rose had it extended for a year.He is awaiting approval to extend it for 20 years. “Our objective is long-term, steady cash flow,” says Mr. Rose. —theresa agovino

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February 2, 2009 | Crain’s New York Business | 13 CNYB 02-02-09 A 14 1/29/2009 8:43 PM Page 1

SMALL BUSINESS Health insurers face off with lower-priced plans

benefits like fully covered annual care—critical in an ethnically di- Aetna, Empire woo checkups, mammograms and other verse market—and helps the com- NYC entrepreneurs preventive care—at a relatively pany hold down costs by carefully modest price. managing services. with robust, relatively Mr. Porter was uninsured prior Aetna also got doctors and hos- inexpensive coverage to enrolling in Aetna’s NYC Com- pitals to agree to lower reimburse- munity Plan, which is just over a ment rates by holding out the year old and geared specifically for prospect of higher volume and few- BY ANNA ROBATON New York City. er numbers of uninsured patients on But some say the new plans are a their doorsteps. ot long ago, Neil mixed blessing.They may seem like Ian Laird, Empire’s director of Porter, co-owner of a a bargain, but regulators argue that strategic initiatives,says his firm gen- small, Manhattan- they are part of a larger effort by in- erates economies of scale as one of based magazine pub- surers to shift more costs onto con- the largest insurers in the state. Also, lisher aimed at the His- sumers in the form of out-of-pock- by “paying [providers] appropriate- Npanic market,considered himself an et charges such as co-pays. ly,”it ensures that doctors and hospi- afterthought in the eyes of big Nor are the plans immune to the tals provide reasonable levels of care. health insurers. big premium hikes that have made “The goal is to partner with “It is so much harder to find in- health insurance too costly for many providers so that they give the appro- expensive coverage as a tiny [com- small businesses. Nationally, about priate level of care for good compen- pany] because nobody really cares half of all businesses with fewer than sation. They have no incentive to about your business,” says Mr. 100 workers were uninsured in overutilize services,” says Mr. Laird. buck ennis Porter, whose firm, Parlante Inc., 2007, according to the Henry J. SOUGHT-AFTER CUSTOMER: Neil Porter, co-owner of a small magazine publisher in Manhattan, Empire has also sought to man- has one other full-time employee. Kaiser Family Foundation, a non- was uninsured until he got coverage through Aetna’s year-old NYC Community Plan. age risk in the small-group market Today,he is the Cinderella insur- profit health research group. by requiring employers that offer ers want to take to the ball. Eager to “Health insurers have not been Prism to limit other choices to Em- capture more of the huge, under- particularly innovative and forceful mated half of the 485,000 small ers than selling insurance contracts. pire products. served small business market,two of in trying to reduce their underlying businesses statewide, according to What’s more, competition in the Small businesses traditionally the largest insurers in New York, costs. As a result, they go to the eas- the Insurance Department.Many of metro area has escalated since Min- pay 18% more for the same levels of Empire Blue Cross Blue Shield and iest thing, which is cost-shifting to the city’s small businesses are owned netonka,Minn.-based managed care coverage as big companies, partly Aetna Inc., are fighting to win over employees,” says Troy Oechsner, by Hispanics and other minorities giant UnitedHealth Group gained a because insurers can’t spread their the likes of Mr. Porter. Central to deputy superintendent for health with historically low levels of cover- foothold here by acquiring Oxford risk over large numbers of workers, their efforts are fledgling managed for the New York State Insurance age. (The Insurance Department Health Plans Inc.in 2004.One of the according to the National Federa- care plans for small businesses billed Department. defines small businesses as employ- country’s largest health insurers of tion of Independent Business. as comprehensive coverage—with ers with two to 50 workers.) small businesses, United has rolled Yet some Prism customers have Sizable market The so-called large-group mar- out a number of small business prod- been hit recently with double-digit To sign up for Crain’s new it’s not hard to see why Empire ket is a mature one, and many big ucts under the Oxford brand,includ- rate hikes. Empire executives say twice-weekly small business and Aetna want a bigger piece of the companies opt to self-insure,paying ing, last April, a group of plans for that Prism sales have greatly exceed- newsletter, go to ➚➚ small business market, particularly carriers to administer their plans— sole proprietors sold through the ed the company’s expectations and WWW.CRAINSNEWYORK.COM/SMALLBIZ in New York City, home to an esti- a less lucrative line for health insur- nonprofit HealthPass partnership. that even with recent rate increases, “We try to develop products that which reflect actual utilization and meet the needs of anybody who higher health care costs,the product walks through Penn Station and is still competitively priced. Grand Central in the morning,”says Such rate fluctuations haven’t es- William Golden, chief executive of caped the attention of regulators. Reduce the Cost of subsidiary UnitedHealthcare of Mr. Oechsner of the Insurance New York. Department says his agency’s top Publicly subsidized programs legislative priority is to regain regu- like Healthy NY have helped reduce latory oversight of health plan pre- Training Your Staff the ranks of the working uninsured, miums to ensure that carriers price but many such programs have strict appropriately from the start. eligibility rules, including relatively low income caps. To qualify for coverage through PARSING Apply for a training grant the state-run Healthy NY, at least 30% of a small business’s employ- THE PLANS Apply ees must earn less than $38,000 a to help your business... THE COMPREHENSIVE health care Before year, a figure adjusted annually for inflation. plans aimed at small businesses Feb. 11 from Aetna and Empire Blue ➾ Grow Market Share A business opportunity Cross Blue Shield offer more aetna is offering a low-cost solu- affordable premiums than tion without Healthy NY’s eligibil- previous programs, but with ➾ Improve Customer Retention ity limits. “We saw that this [NYC generally higher co-pays, Community Plan] was the right including hundreds of dollars for thing to do morally, but it also rep- inpatient hospital care. ➾ Reduce or Eliminate Waste resents a significant business oppor- Premiums for Empire’s Prism tunity as well,” says Miguel Cen- suite of plans vary according to teno, vice president of strategic benefit levels, but the least ➾ Increase Productivity market development for Aetna in expensive monthly rate in the New York. metro area is $338 for a single Although the new plans from employee and $1,014 a month today Aetna and Empire have multiple for family coverage, according to Apply at www.nyc.gov/training co-pays, including hundreds of dol- the company. lars for inpatient hospital care,com- Aetna also revamped pany executives say relatively low pricing, with the least-expensive premiums largely reflect their ef- option at $243 a month for a forts to control costs. single employee and $711 a For its NYC Community Plan, month for family coverage. Aetna created a subset of its larger Both plans offer preventive metro area provider network. Aetna care with no co-pays. Mayor, Michael R. Bloomberg officials say the smaller network offers localized, culturally sensitive

14 | Crain’s New York Business | February 2, 2009 CNYB 02-02-09 A 15 1/29/2009 6:41 PM Page 1

SPECIAL HAVE YOUR SAY ON THE WEB AND JOIN THE DISCUSSION AT FUTURENYC.CRAINSNEWYORK.COM FUTUREThe of NEW YORK CITY With the economy faltering, New York’s crucial growth sectors face big challenges and yet must be the key to any recovery istockphoto WHERE NEW YORK STANDS THE FORECASTS 7.4% 49,100 17,500 8% 1.6% 242,700 82,300 $18B UNEMPLOYMENT JOBS LOST FINANCIAL JOBS OFFICE VACANCY INFLATION RATE TOTAL JOB FINANCIAL JOB 3-YEAR BUDGET RATE IN 2008 LOST IN 2008 RATE IN 2008 LOSSES LOSSES DEFICIT

February 2, 2009 | Crain’s New York Business | 15 CNYB 02-02-09 A 16 1/29/2009 6:36 PM Page 1

REPORT THE FUTURE OF NYC Finance sector is key to bolstering economy City could reinvent itself by diversifying into new sectors Suggestions BY KATHRYN WYLDE ew york city rose from the ashes of America’s urban crisis on the wings of Wall Street.For the past 20 years,the whole world has come to New York to raise capital. From encouraging incubator space Our city flourished as New York businesses were recognized as best in class in almost every global industry.Until six months ago,our biggest economic challenge to creating an idea factory Nwas thought to be competition from emerging financial centers in London, Asia and the Middle East. REINSTATE TAX INCENTIVES for converting commercial Today, thanks to the collapse of global financial markets, we are all in the same soup. The space to residential use in lower Manhattan. prosperity that world cities enjoyed for almost two decades, driven by aggressive practices in —Barry Gosin, CEO, Newmark Knight Frank

finance and real estate, turns out At the conference, Jamie Di- CREATE A NEW YORK IDEA FACTORY to be able to go to have been as much as 40% mon,chief executive of J.P.Morgan ephemeral. Chase, who has emerged from this out there and pump ideas into businesses. So where do we go from here? crisis as the leading figure in Amer- —Ed Weiner, CEO, Hudson Media Services That is the question that Crain’s ican banking,will be joined by Nas- and the Partnership for New York daq OMX CEO Bob Greifeld and CONTINUE FUNDING NYC & COMPANY to promote City hope leading New Yorkers will TIAA-CREF CEO Roger Fergu- address on Feb. 3. One thing is cer- son, the former vice chairman of tourism. —John A. Fox, vice president, PKF Consulting tain:When the current crisis is over the U.S. Federal Reserve System’s and the dust has cleared, our city board of governors. Along with REVIVE AND REFORM the commercial mortgage- and state must remain the center of other speakers, they will tackle the backed securities market. world finance. There is nothing to issues of how the financial services —Mary Ann Tighe, replace financial services as a source sector can recover its profitability CEO for the New York Tristate region, CB Richard Ellis of high-paid jobs, tax revenues and and credibility,thereby remaining a charitable contributions, and as a strong, if more consolidated, pillar ENCOURAGE cheap incubator space with high magnet to attract talent from of the New York economy. around the world. Fortunately, the Bloomberg ad- capacity. —Mitchell Moss, professor, New York University New York’s recovery has been ministration has made diversifica- made more difficult by the disen- tion of the city economy a key item CREATE JOB BANKS with strong support networks. chantment most Americans feel on its agenda.The city has pumped capital from the financial industry toward Wall Street.Frustrated over up efforts to support culture and and will need business partnerships —Marian Salzman, chief marketing officer, Porter Novelli evaporating savings, falling house tourism, create a life sciences in- with multinational corporations. prices and growing unemploy- dustry cluster, upgrade infrastruc- Put these factors together with INCREASE INTERNATIONAL MARKETING of the ment, people cannot understand ture to attract technology-enabled New York’s softened real estate hospitality industry. —Kevin Smith, general manager, New Yorker Hotel why taxpayer dollars are being businesses, and even establish safe markets, world-class universities spent to shore up major financial havens for niche manufacturing. and surfeit of available talent from institutions rather than provide di- At the conference, Mayor Mike layoffs in key industries, and New CREATE A FUND with early-stage capital for biotech rect relief to individual families. Bloomberg and Deputy Mayor York could have all the ingredients companies. The fact that we have narrowly Bob Lieber will discuss their plans necessary to reinvent itself as a city —Nathan Tinker, executive director, New York Biotechnology Association avoided the complete collapse of for sustaining job growth in multi- of entrepreneurs positioned to be our financial system, and that the ple sectors across the five boroughs. the first to benefit as the nation re- danger is still not behind us, is not Last year, Houston replaced covers from global recession. ADVOCATE for passage of the Travel Promotion Act. well understood.New Yorkers need New York as the U.S. city with the —Jonathan Tisch, chairman and CEO, Loews Hotels to keep sending the message that most Fortune 500 headquarters. Kathryn Wylde is president and chief the future of America’s Main Maybe that is just as well.The next executive of the Partnership for New Streets can only be secured if we wave of rapid job growth will like- York City.On Tuesday,she will mod- HIRE CITY LIAISONS and offer tax breaks for the video salvage Wall Street and maintain ly come from smaller companies in erate a discussion about financial game industry.—Eric Zimmerman, co-founder and chief designer, Gamelab our role at the forefront of global emerging industries. Of course, services during the Future of New markets. these companies will be seeking York City conference. PROVIDE FINANCING for commercial mortgages to avoid a crisis. —Steven Spinola, president, Real Estate Board of New York

COMMIT TO TRAINING a workforce for the clean-energy sector. —Tria Case, executive director, Center for Sustainable Energy at Bronx Community College

RECOGNIZE that retrofitting city-owned buildings for clean energy equals jobs. —Carol Murphy, executive director, Alliance for Clean Energy New York Inc.

CREATE PUBLIC/PRIVATE PARTNERSHIPS between City Hall, finance and media. —Dan Ramsden, managing director, Near Earth, a boutique investment banking firm

Add your idea at futurenyc.crainsnewyork.com istockphoto myra klockenbrinkmyra

16 | Crain’s New York Business | February 2, 2009 Project5 2/25/08 11:14 AM Page 1

It’s pretty green at the Big Apple’s core. Fortunately, so is our power plan.

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www.conEd.com CNYB 02-02-09 A 18 1/29/2009 6:38 PM Page 1

REPORT THE FUTURE OF NYC Masters of universe WALL STREET BY THE NUMBERS SEEING RED From net losses to dwindling bonuses confront a new world and sliding revenues, the data on the Street are grim.

Numbers paint WALL STREET’S WOES include big drops in the bleak picture, but stock prices of the New York Stock Exchange many say NY talent and Nasdaq. will revive industry

BY DANIEL MACHT

it wasn’t so long ago that Wall Street boasted record profits, and new jobs cropped up three times faster in finance than in other industries.The average Wall Street salary hit a record $339,910 in 2006, and the average bonus surpassed

$136,000, three times the level of a buck ennis decade earlier. No wonder econo- mists said each job on Wall Street sumer car loans and credit card debt In short, the financial crisis has created two others elsewhere in the and with more mortgage defaults upended the traditional business economy. expected in 2009, it could be a year model for Wall Street’s biggest firms. Then things came to a screech- before the dust settles and a sense of ing halt. normalcy returns. Fewer leveraged bets Toxic mortgage assets tied to “It’s very hard to make any judg- principal transactions won’t be subprime mortgages led to massive ment about the fundamentals when as lucrative for the foreseeable future write-downs and a liquidity crisis. you are in the middle of an earth- because major Wall Street banks’ Behemoths like Fannie Mae, Fred- quake,” he says, but predicted that ability to place big leveraged bets us- die Mac and American Internation- when the crisis ebbs,“the new world ing borrowed money will be reduced al Group had to be rescued, while will essentially be risk-averse and by regulators in Washington. In- Bear Stearns and Lehman Brothers cautious.” vestment banking may be less re- were sacrificed for the sins of the in- Revenues from the last year tell warding as well. dustry. Investment banks stopped the story in New York. “Some of the deals that gave Wall lending and soon weren’t investment Principal transactions,or trading Street the big bonuses were some banks anymore. By the time the av- on a company’s own account, had of the megamergers,” says Mr. erage American learned what a col- made up nearly half of revenue for McKeon. “I think what we will see lateralized debt obligation or credit the six largest Wall Street securities now is large companies selling busi- default swap was, the damage had firms, according to the state comp- nesses, reassessing their core busi- been done and the party was over. troller’s office.But those bets,which nesses and selling off those that are The impact has been staggering. brought in $51 billion in the first outside the core.” Since its peak in September half of 2007, saddled the companies As big banks become more risk- 2007, the securities industry has averse,rainmakers could lead a brain shed at least 17,800 jobs in the city, drain of investment bankers to oth- according to New York state’s De- er financial firms such as investment partment of Labor. Commercial ‘The new world boutiques, boosting an important banking cut 3,100 jobs. Insurance sector of the securities industry. jobs have taken a hit, too. will essentially Moelis & Co., a boutique firm that former UBS investment bank- More job losses to come be risk-averse ing president Kenneth Moelis the turmoil in financial services and cautious’ founded 18 months ago, for exam- will cost New York City 175,000 ple, recently jumped into promi- jobs, says the city comptroller. The nence on a Bloomberg list of the top state is likely to lose 225,000 pri- 20 counseling companies—ranked vate-sector jobs over the next two by market share—for its work on In- years,says the state comptroller,and Bev’s takeover of Anheuser-Busch. $6.5 billion in securities industry- with a $28 billion loss in the second Dan Ramsden, managing direc- related tax revenue. half, reflecting write-offs. Another tor at Near Earth, a boutique fo- Even the city’s two major ex- $18 billion in red ink followed in the cused on the satellite, media and changes, the New York Stock Ex- first three quarters of 2008. telecom industries, says specializa- change and Nasdaq, have had a Investment banking, the second tion has positioned boutiques like rough go despite record trading vol- major revenue stream for the biggest his to thrive in an era in which ac- ume. Together, they delisted more banks, fell by 42% on the reduction cess to capital markets is limited. than 120 companies in 2008.NYSE in merger and acquisition activity. “The quality of good advice is al- Euronext’s stock fell more than 70% Only 29 initial public offerings were ways at a premium,” he says. from its high of $90 per share. Nas- completed in all of 2008,an 85% de- Optimists say the outlook for daq OMX Group did a little better, cline, and mergers dried up as well. the financial services industry will dropping 40%, to trade below $20 “Without the credit markets run- brighten when companies can ac- per share last fall. ning freely and money to do financ- cess the credit markets again,reviv- With little relief in sight, the ing, there are no deals, no IPOs, no ing financing and mergers, as well biggest unknown facing New York’s major debt restructuring,” says Mi- as the prospects for New York. financial services industry comes chael McKeon, a senior partner at “The city will rise again when the down to this: When will the sector consulting firm Booz & Co. water level comes back up,’’ says recover, and how will it make mon- Only asset management and in- NYU’s Mr. Smith. ey in the new financial world order? terest income provided a revenue Mr. McKeon of Booz & Co. Roy Smith,a professor of finance boost during the first three quarters agrees. New York will remain atop at New York University, says that of 2008—and not by much com- the financial world, he says, “be- with further markdowns anticipat- pared with levels in the same period cause that’s where the talent is and ed on securities backed by sour con- a year earlier. where governance is the best.” klockenbrinkmyra

18 | Crain’s New York Business | February 2, 2009 CN012712 1/23/09 2:07 PM Page 1

DAVID L.V. BAUER CUNY’S NEWEST RHODES SCHOLAR • 2008 RHODES SCHOLAR • 2008 HARRY S. TRUMAN SCHOLARSHIP FOR PUBLIC SERVICE • 2007 BARRY M. GOLDWATER SCHOLARSHIP • 2005 INTEL SCIENCE TALENT SEARCH Macaulay Honors College at City College 2009, Hunter College High School 2005

Aurora Almendral Riki Drori Margaret Park Mark A. Smiley Hunter College Hunter College Hunter College Baruch College Fulbright Scholarship, 2007 Jack Kent Cooke Foundation Fulbright Scholarship, 2008 Jack Kent Cooke Foundation Louise Anderson Graduate Scholarship, 2004 Yeshey Pelzom Graduate Scholarship, 2007 CUNY Baccalaureate, Holly Ecker LaGuardia Community Corey E. Sullivan John Jay College Hunter College College The City College of New York William McCaig Thurgood Marshall Fulbright Scholarship, 2005 CUNY Baccalaureate, Jack Kent Cooke Foundation Fulbright Scholarship, 2008 Scholarship, 2007 Transfer Scholarship, 2006 Moses Feaster Hunter College Priya Surya Alice Michelle Brooklyn College and Graduate Scholarship, Macaulay Honors College NSF Graduate Research 2008 Augustine National Science Foundation Fellowship, 2005 at Queens College Lehman College Graduate Research Julia Rafal Fulbright Scholarship, 2007 Paul & Daisy Soros Fellowship, 2006 Ryan Merola Lehman College Macaulay Honors College Lev Alexander Sviridov Fellowship for New Miriam Ginzberg British Marshall Scholarship, The City College of New York Americans, 2006 at Brooklyn College 2006 Queens College Harry S. Truman Rhodes Scholarship and Rafat Azad Barry M. Goldwater Scholarship, 2006 Alex Rodriguez Barry M. Goldwater Queens College Scholarship, 2007 Macaulay Honors College Scholarship, 2005 Carla Minami Fulbright Scholarship, 2007 Ricardo at Hunter College Sean Talisman Hunter College Fulbright Scholarship, 2008 Suzanne Barnett Gonzalez Rubio Fulbright Scholarship, 2006 Queens College Hunter College The City College of New York Yisa Rumala Jack Kent Cooke Foundation Jacob Javits Fellowship, 2004 Paul & Daisy Soros April Mojica York College Graduate Scholarship, 2006 Fellowship for New CUNY Baccalaureate, National Science Foundation Itamar Belisha Medgar Evers College Jessica Tibbets CUNY Baccalaureate, Americans, 2007 Graduate Research The City College of New York Thurgood Marshall Fellowship, 2006 The City College of New York Kate Hirschmann- Scholarship, 2005 Fulbright Scholarship, 2007 Barry M. Goldwater Levy Rachel Schnur Jocelyn Muhleisen Keisha Toms Scholarship, 2007 Hunter College Queens College CUNY Baccalaureate, Fulbright Scholarship, 2007 Baruch College Barry M. Goldwater Christopher Bell Fulbright Scholarship, 2007 Medgar Evers College Baruch College Joseph Hirsh Scholarship, 2006 Fulbright Scholarship and Fulbright Scholarship, 2007 Macaulay Honors College Philipa Njau Aida Sehovic Thurgood Marshall at Queens College The City College of New York Hunter College Scholarship, 2005 Mitsy Chanel-Blot Fulbright Scholarship and Macaulay Honors College National Science Foundation Jacob Javits Fellowship, 2007 Van Tran Graduate Research Barry M. Goldwater at Hunter College Scholarship, 2005 Erica Seppala Hunter College National Science Foundation Fellowship, 2008 Hunter College Paul & Daisy Soros Graduate Research James Jackson Sarah Osewait Fulbright Scholarship, 2006 Fellowship for New Fellowship, 2008 Hunter College Hunter College Americans, 2004 Fulbright Scholarship, 2006 Eugene Shenderov Vanessa Crevecoeur Fulbright Scholarship, 2005 Brooklyn College Kojo Wallace York College Tennessee Jones Ianna Owen Rhodes Scholarship, 2005 Bronx Community College UNCF-Merck Undergraduate CUNY Baccalaureate, Macaulay Honors College Jack Kent Cooke Foundation at Hunter College Claudio Simpkins Science Research Award, Hunter College Macaulay Honors College Transfer Scholarship, 2008 2006 Jacob Javits Fellowship, 2008 Ford Foundation Pre-doctoral Fellowship, 2008 at The City College Deborah M. Wolf Christine Curella Matthew MacLean of New York Macaulay Honors College Macaulay Honors College Brooklyn College Harry S. Truman at The City College at Hunter College Fulbright Scholarship, 2006 Scholarship, 2005 of New York Harry S. Truman Jacob Javits Fellowship, 2006 Scholarship, 2007

BENNO C. SCHMIDT, JR. MATTHEW GOLDSTEIN Chairperson, Board of Trustees Chancellor

Visit www.cuny.edu or call 1-800-CUNY-YES and watch CUNY-TV Channel 75. CNYB 02-02-09 A 20 1/29/2009 6:38 PM Page 1

REPORT THE FUTURE OF NYC Deals galore as tourism sector sees business ebb

bright side. Mayor Michael specials that include 20% off the Hotels, restaurants Bloomberg announced late last year cost of a room, upgrades, dining roll out special that a record 47 million tourists deals and complimentary breakfast. came to New York in 2008,1 million NYC & Company will also mark offers; industry more than in the year before.Spend- its largest Restaurant Week promo- criticizes tax hike ing was estimated at $30 billion, fu- tion, which offers diners three- eled in no small part by 9.8 million course lunches and dinners for fixed visitors from abroad. prices of $24.07 and $35,respective- BY STEPHEN J. BRONNER However, officials are ignoring a ly.More than 250 restaurants,about sharp decline that occurred at the 30 more than last year, are partici- gray line, the global sightseeing end of the year. pating in the 18th year of the pro- tours company, is offering an un- Hotel occupancy in the city fell gram. For the first time ever, 100 precedented package deal to keep its about 5 percentage points in De- restaurants will offer the fixed-price klockenbrinkmyra excursions filled. cember, to 76.3%, according to meals on Sunday. The organization The Gray Line’s two-day hop- Smith Travel Research, a level not is also running a winter “Deal-o- with there,” he says. “Maybe we’ll 1,000 workers for a near-record to- on/hop-off sightseeing tour of seen since 2002. The average room Matic” savings program, with more have to wait until 2010 before we get tal of 111,000 people. Manhattan now includes a cruise on rate dipped 10%, to $297.15. than 200 exclusive offers on hotels, the rates that we were looking to get.” the Hudson River, a tour of Staten “Historically, the peak of the year dining, shopping and attractions. Industry leaders are particularly Rest of country in worse shape Island and even an opportunity to is October to Christmas,” says John Kevin Smith, general manager of incensed by the City Council’s deci- some experts note that the city is meet a Broadway performer for an A.Fox,a senior vice president at PKF the New Yorker Hotel, says a just- sion to raise the hotel tax by almost faring well compared with the rest of hour—all for $49. Consulting, which researches the completed renovation and rates be- 1 percentage point, adding $3 a the country, where hotel occupancy A decline in patronage “got our hospitality, real estate and tourism low those of his competitors put the night to the average cost of a room. rates are around 60%. attention,” says marketing director industries. “We’re just not seeing the New Yorker in a good position to They believe that it could worsen “New York City is experiential, Mike Alvich. “So we had to decide levels we’ve seen in the past.” weather the downturn. Mr. Smith the expected falloff in visitors. it’s a rite of passage,” says Chris to add this value throughout the sea- admitted, however, that occupancy “Attacking the hotels by adding Heywood, vice president of travel son.” Three nights for the price of two fell to 85% at the end of last year, a the tax is definitely the wrong way to and tourism for NYC & Company. The city’s tourism sector, which to combat this weakness, NYC time when the hotel is usually sold go,” Mr. Smith says, reflecting the “We’re certainly not immune to the has ridden a boom in visitors to & Company, the city’s marketing out,and its room rate has dropped to opinion of many hoteliers. “I think effects of the economy, but we’re in three years of prosperity, is now and tourism arm, will offer some $235, from $259 a year ago. As a re- the city needs to pare down its ex- a good position in terms of being scrambling to find ways to bolster its deals of its own. Nine luxury hotels sult,the hotel reduced many employ- penses, and I think the loaded bu- able to get through any potential business. Special deals are the oper- will offer guests a third night free af- ees’ workweeks to four days and reaucracy is the place to start.” downturn.” ative words as hotel executives, ter they pay for two consecutive shrank its housekeeping staff to shave For now, the industry hasn’t re- Mr. Alvich of Gray Line says the restaurateurs and others keep their nights in January and February, as 25% off its payroll, Mr. Smith says. sorted to significant job cutbacks. company sees 2009 as a comeback fingers crossed that the economic part of the tourism bureau’s Third “We’re not getting anywhere Hotel industry employment totaled year. “We’re all going to have to be crisis will mean only small declines Night promotion.More than 45 ho- near what we originally hoped we’d 43,000 at the end of November, un- aggressive and creative and offer as in business. tels are participating in the Sunday be getting with the renovation, but changed from a year earlier, while much value as we can throughout City officials are looking on the Stays program,which offers Sunday we’ve got a lot of cushion to work full-service restaurants have added the year,” he notes.

Lorraine Shanley, a principal at Market Partners International, a Ad drought ravages media firms book consulting firm. “It’s not like newspapers, where we had 25% profit margins and now we have cording to the city’s Economic De- that doesn’t embrace papers, and layoffs, and the following month it none,” she added. Broadcast is in better velopment Corp.New York controls competition from free papers such closed Cottage Living magazine. The broadcast industry hasn’t es- shape than print; 50% of all the revenue in magazines, as Metro and amNY, says Ed Wein- Other major magazine publishers, caped the pain, although its situa- broadcast television and books, and er of agency Hudson Media Ser- such as Condé Nast and Hearst, tion is not as dire as that of the print digital holds the key about a quarter in radio, cable tele- vices. While the free papers’ impact have also announced cutbacks and media. Employment is actually up to the future vision and newspapers. has been small, he noted that “they folded publications. over the past year, although that is Media is also among the areas of steal readers at a time when money Publishers were acting in antici- unlikely to continue in the face of a the economy hit hardest by the is tight. ‘Free’ works over ‘$1.50’ pation of an ever weaker advertising 30% decline in television spending BY DAVID CHIU downturn. every day.” market in 2009 as the national re- by automakers. cession takes hold,says Steve Cohn, “If you look at all of the stations the local media industry’s plight Newspapers in tailspin editor in chief of Media Industry in New York,” says Bill Carroll, vice can be summed up this way: News- the decline of advertising in Book publishing Newsletter, who thinks there could president and director of program- papers, magazines, radio and televi- newspapers has been so steep— be more cutbacks around the corner. ming at the Katz Television Group, sion stations have all experienced de- partly cyclical and partly because of is recession-proof “If publishers and magazine compa- “they’re all part of larger corpora- moralizing declines in revenue, the the shift to the Internet—that some ny [executives] think they’re going tions, and those corporations have biggest magazine publishers have wonder if they will even survive. no more, as sales to look bad in the second quarter,” mandated that there be a restructur- folded well-known titles, and book One,the six-year-old New York Sun, he says, “you’re going to see more ing and cost savings.” sales have plunged by double digits. was forced to close. Advertising in fall sharply layoffs after the New Year.’’ The city is looking at how to help “You used to go to parties and the New York Times dropped 12.8% the media industry. The Economic there would be a sense of prospect,” in the first 11 months of last year. Book sales also suffer Development Corp. is organizing a says Alissa Quart, a media colum- The Times and its rivals,the Dai- in past downturns, books have study of how New York can maintain nist for Columbia Journalism Re- ly News and the New York Post, de- generally been recession-proof, but its status as the leader in media dur- view. “There were professional and pend on automotive, employment Magazines face equally daunting this recession is different.Book sales ing the shift to the Internet. What creative possibilities. The media and real estate classified advertising challenges. declined by 3.4% in the first 10 the study suggests could be crucial. parties may still look similar to what for half their revenue, says analyst Titles such as Rolling Stone, Busi- months of 2008, and the month of “The digital distribution sys- they once were, but they are differ- John Morton. nessWeek and Time experienced a October saw a 20.1% drop, accord- tems we’re seeing are going to cre- ent underneath. It’s not a subtle “They have been in a tailspin double-digit loss in advertising last ing to the Association of American ate opportunities for our media in- thing: People are losing their jobs.” since last year,” he says, “and it’s not year.Not surprisingly,the automotive Publishers. Random House recent- dustries,’’ says New York University New York is the capital of the expected to recover at all until late industry’s problems forced it to rely eliminated 22 jobs, while Simon professor Mitchell Moss. “We media world and, while that busi- 2009.” Layoffs have occurred at duce ad spending by 20%, according & Schuster cut 35 positions. should be doing everything possible ness is not Wall Street,it is crucial to most of the papers. to Publishers Information Bureau. Publishing profit margins have to encourage new media ventures the city’s economy. Media compa- Other obstacles facing the dailies In late October, Time Inc., never been large, and the sudden on the theory that some will turn nies account for more than 160,000 are an inability to monetize their which publishes Time, People and drop in sales makes a restructuring out to be quite great and important jobs and $15 billion in wages, ac- Web sites, a young demographic Sports Illustrated, announced 600 of the industry unavoidable, says assets.”

20 | Crain’s New York Business | February 2, 2009 Project2 11/11/08 12:34 PM Page 1

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REPORT THE FUTURE OF NYC Real estate seeks helping hand from Washington

cracy.Their primary hope, however, overall vacancy rate to 8%. Average Market weakens, is that President Barack Obama’s commercial rents fell $5,to $79.81 a but infrastructure proposed $800 billion-plus stimu- square foot,the largest quarterly de- lus package will stop the decline. cline in memory. funds, incentives “New York City must be ready to The financial industry alone lost could spur sector engage the federal infrastructure dol- 17,800 jobs in the past 16 months, lars,”says Mary Ann Tighe,chief ex- and as employment continues to klockenbrinkmyra ecutive for the New York tristate re- drop, so too will rents. It’s the law of BY ERIN EILEEN O’NEILL gion at CB Richard Ellis.“It will go supply and demand at work. “The get back to work more quickly. these investments will create thou- a long way toward something posi- more people, the more requirement A reorganization of the New sands of jobs,” says Michael Della the financial meltdown is tive happening in a difficult period.” for space,” says Barry Gosin, chief York City Department of Buildings Rocca, president of the North drowning New York’s real estate In the meantime, the numbers executive officer of Newmark sits at the top of Ms. Tighe’s to-do American operations of Halcrow, a market. are bleak. Knight Frank,“the higher the rent.” list. Reforming the commercial leading infrastructure firm. Mr. The nearly decade-long con- Permits for new residential build- The reverse holds true, of course. mortgage-backed securities market Della Rocca sees a twofold benefit struction boom has ended abruptly. ings fell 74% in November,according To spur activity, Mr. Gosin rec- makes the cut, too. from Mr. Obama’s stimulus pack- The city’s residential market, which to the U.S. Census Bureau. A report ommends reinstating tax incentives age. In the short term, federal fund- seemed immune to the market tur- by brokerage firm Prudential Dou- for converting commercial space to Commercial mortgages at risk ing will stimulate jobs and spending moil as the average price of a Man- glas Elliman and real estate apprais- residential use in lower Manhattan. if there’s no plan for dealing with on raw materials. In the long term, hattan apartment continued to rise, er Miller Samuel Inc. noted that the The program—credited for revital- problems that arise as those mort- financing infrastructure projects is about to see a sudden drop. The number of apartments for sale in izing the financial district in the first gages come to term, pain in the will bolster confidence in the city accelerating number of job losses is Manhattan rose 39% in the fourth part of this decade—would take commercial sector could lead to the among potential investors. sending commercial vacancy rates quarter, pushing the inventory up to commercial space off the market same wave of foreclosures that have “It’s necessary to do fundamental up and rental rates down. 9,081 apartments,the third-highest and boost slumping rents. crippled the residential market. maintenance and operations,” says “I think it’s going to be like being level in a decade. The report for the On the residential side, the city Providing financing for commercial Mr. Della Rocca. But he argues that pushed over a cliff,” says Louis Co- first quarter is likely to show a decline could liberalize the recently tight- mortgages is “a critical step toward the government must also strategi- letti,president of the Building Trades in average prices of at least 15%,says ened 421-a tax exemption program avoiding a major, major hit across cally dole out federal funds to proj- Employers’ Association. “2009 is Jonathan Miller of Miller Samuel. to spur residential projects else- the country,” says Steven Spinola, ects like the Second Avenue Subway shaping up to be a horrific year.” where in the city. president of the Real Estate Board and East Side Access, which may Mr. Coletti’s organization puts Office leasing weakens “This is a longer-term solution of New York. not have as many immediate bene- the value of canceled development with financial firms contracting to a longer-term problem,”says An- While disagreement exists on fits but will create more jobs and projects at $5 billion, and he thinks and shedding space, commercial of- drew Singer, chief executive of The the effectiveness of these programs, more revenues in the future. that figure will continue to rise. fice leasing hit a seven-year low in Singer & Bassuk Organization, a everyone believes the best hope for Mr. Spinola says that while the Those invested in the future of the the fourth quarter, falling 19% from real estate consulting firm,about re- New York’s real estate and construc- city may be down, it is certainly not city’s real estate industry are armed the year-earlier period,to 19 million vamping the 421-a program. The tion industries lies in the Obama out, and conditions remain a far cry with ideas to throw at the problem, square feet,according to a Cushman hope is that when banks start fi- stimulus plan and its hundreds of from the 1970s. “The bottom line: ranging from tax incentives to & Wakefield Inc. study.The plunge nancing projects again, developers billions of dollars for infrastructure. People still want to be in New York,” streamlining government bureau- in activity pushed Manhattan’s armed with a tax advantage could “There is the expectation that he says.

OwnEnergy, the only city-based wind developer, has 12 projects in seven states and Going for growth in new tech fields hopes to start work on a wind farm in New York in two years.

Bloomberg and Paterson administrations Brooklyn Army Terminal, leasing won’t begin VIDEO GAMING Support for emerging provide the incentives and tender loving care at the East River Science Park until 2010. ne giant market with a strong sectors like biotech, gaming needed to keep these industries from incubat- Meanwhile, the total square footage of foothold in New York is the video game ing in other states. these projects pales in comparison with the 12 Oindustry. might provide a boost million square feet of lab space devoted to More than 30 companies employ 1,200 BIOTECH biotechnology in Boston and Cambridge, 1.6 people in the city, according to a study by the ith wall street bonuses deflating, million square feet of which is currently avail- Center for an Urban Future, up from a hand- BY CLARK MERREFIELD the biotechnology industry, which able. ful of developers in 2003.The $37.5 billion in- Whas a market capitalization of $360 dustry, which is expected to grow 9% annual- eric zimmerman wishes New York had billion, could help replenish city coffers and CLEANTECH ly, offers sizable potential. game. provide attractive jobs, since the annual wage n the past, a big challenge for companies New York’s strength lies in small gaming The co-founder and chief designer of video of U.S. bioscience workers averages $71,000. in the clean technology industry has been firms focused on casual, Internet- or social game company Gamelab recalls being wined The potential is there. New York City in- Iexplaining just what the term “cleantech” network-based entertainment. and dined while attending the 2005 Mon- stitutions received $1.3 billion in funding means. “New York City in particular has many treal International Game Summit. What he from the National Institutes of Health in Cleantech, defined as products or services more of those independent, alternate, small- got during dinner at a restaurant was a sales 2007, second only to Boston’s $1.6 billion. that promote conservation of natural re- scale,nimble studios,versus California,which pitch for Montreal: City officials and confer- Most of the New York money went to univer- sources, may soon become a household word, is home to all of the studios, the major, big ence representatives gave a rundown of the tax sities, where biotech firms are typically born, though, and lead to the growth of firms and public companies,”says Jason Della Rocca,ex- breaks available to game companies, and a including $340 million to Columbia. jobs. Many expect the Obama administration ecutive director of the International Game pitch on the city’s quality of life. “Academic medical centers are a great to emphasize energy conservation, and local Developers Association. “It struck me as so interesting that New source of spin-off companies,” says Lenzie officials are jumping on the alternative energy But the city’s lack of gaming savvy could York City has never done anything like that in Harcum, vice president of bioscience for the bandwagon as well. end up costing it, says Mr. Zimmerman, the my decade and a half making games in the city’s Economic Development Corp. “Twelve “Mayor Bloomberg and Gov. Paterson Gamelab owner whom Canadian officials city,’’ he says. companies came out of Columbia last year.” have said, ‘Yeah, New York needs to think wined and dined. It turns out that a stack of empty wine bot- In the past,most of them left New York be- about its energy differently,’”says Carol Mur- “It’s becoming more and more widely ac- tles or even a couple of hundred Bunsen burn- cause they couldn’t find affordable lab space as phy, executive director of the nonprofit Al- knowledged that games are really very likely ers could go a long way toward reviving New they grew. Now, the city is helping to build liance for Clean Energy New York Inc.“We’ve going to be the pre-eminent form of culture in York’s moribund economy. roughly 1.5 million square feet of commercial got all the elements here.’’ the coming century as opposed to the moving In the wake of the financial sector wreck- lab space for small and large biotech firms at The city may well turn toward its bread and image,” he says. age,the state can no longer rely on Wall Street the East River Science Park in Manhattan and butter—the financial sector. Employees at The city’s rents, high expected salaries and for 20% of revenues.Instead,emerging indus- the Brooklyn Army Terminal. companies such as Brooklyn-based OwnEn- taxes are continued drawbacks for gaming tries like biotechnology, cleantech and video But it could be a while before local biotech- ergy Inc.,which works with landowners to be- firms. To be sure, those pitfalls are partially gaming could lead the way toward diversifica- nologists fire up those Bunsen burners.While come part owners in wind farms, have back- offset because New York City is a draw for cre- tion. But that may depend on whether the some lab space is already available at the grounds in finance. ative talent.

22 | Crain’s New York Business | February 2, 2009 Project1 1/27/09 12:41 PM Page 1

With a mission to maintain the city’s position as the global center of commerce, nance and innovation, the Partnership for New York City is an organization of the leaders of corporate, investment and entrepreneurial rms. They work in partnership with city and state government o#cials, labor groups, and the nonprot sector to enhance the economy and increase the competitiveness of the city. Through its a#liate, the New York City Investment Fund (www.nycif.org), the Partnership directly invests in economic development projects in all ve boroughs of the city.

Partnership for New York City www.pfnyc.org nb05p25-26cls.qxp 1/29/09 2:37 PM Page 24

BUSINESS OPPORTUNITY EXECUTIVE RECRUITER PUBLIC & LEGAL NOTICES BUSINESS OPPORTUNITIES IN NYC PARKS POSITION AVAILABLE SUPREME COURT - COUNTY OF BRONX Notice of Qualification of MPGOP (CAYMAN) Notice of Qualification of CENTRO NP The New York City Department of Parks & Recreation THE PARK AVENUE BANK, Plaintiff against 1001 CASTLE III THRIFT AV-I L.P. Authority filed with RESIDUAL POOL 1 SPE, LLC. Authority (“Parks”) is seeking to add to its solicitation mailing lists REALTY GROUP CORP., et al Defendant(s).Pursuant to a Secy. of State of NY (SSNY) on 01/13/09. filed with Secy. of State of NY (SSNY) on the names of individuals and businesses that are Jr Options Portfolio Manager New Judgment of Foreclosure and Sale entered herein and Office location: New York County. LP 12/11/08. Office location: New York interested in doing business in City parks. Currently over York, NY. Apply knowl of advanced dated October 1, 2008, I, the undersigned Referee will formed in Cayman Islands on 07/24/08. County. LLC formed in Delaware (DE) on 500 businesses operate on parkland throughout the five sell at public auction at the Mario Merola County boroughs pursuant to agreements with Parks. These statistics and financial time-series Principal office of LP: 520 Madison Ave., 12/04/08. Principal office of LLC: 420 Building, Room 600, 851 Grand Concourse, Bronx, NY 35th Fl., NY, NY 10022. SSNY designated as Lexington Ave., NY, NY 10170. SSNY des- businesses include mobile food units, restaurants, farmers’ analysis. Bachelor’s degree or foreign on the 23rd day of February, 2009 at 2:00 PM premises agent of LP upon whom process against it ignated as agent of LLC upon whom markets, sports facilities, amusement parks, arts and equiv in Math, Comp Sci, Fin reqd situate, lying and being in the Borough and County of the may be served. SSNY shall mail process to process against it may be served. SSNY crafts markets, T-shirt and souvenir stands, marinas, plus 2 yrs Associate level exp in Bronx, City and State of New York, bounded and carousels, driving ranges, golf courses, gas stations, described as follows: BEGINNING at a point on the cor- c/o Corporation Service Co., 80 State St., shall mail process to c/o Corporation tennis facilities, ice rinks, newsstands, parking lots, structured credit derivatives trading ner formed by the intersection of the northerly side of Albany, NY 12207-2543, registered agent Service Co. (CSC), 80 State St., Albany, NY restaurants, snack bars, stables, Christmas tree stands, w/global financial institution, Eastern Boulevard with the westerly side of Castle Hill upon whom and at which process may be 12207-2543. DE address of LLC: c/o CSC, and many others. If you’re interested in learning more w/advanced programming skills to Avenue as the same are now legally opened; being a plot served. Name and address of each general 2711 Centerville Rd., Ste. 400, Wilmington, about business opportunities in City parks and/or would 108.06 feet by 80.36 feet by 108.06 feet by 80.45 feet. partner are available from SSNY. Cayman DE 19808-1645. Arts. of Org. filed with like to be added to our solicitation mailing lists so that you build & utilize production-grade mod- Said premises known as 1001 CASTLE HILL AVENUE, Islands address of LP: c/o Walkers SPV Ltd., Secy. of State, Div. of Corporations, 401 receive notice of when new opportunities become els to price financial derivatives, eval BRONX, NY Approximate amount of lien $1,788,290.26 Walker House, Mary St., George Town, Federal St., Ste. 4, Dover, DE 19901. available, please contact the Revenue Division by calling portfolios, analyze systematic trade plus interest & costs. Premises will be sold subject to Grand Cayman, Cayman Islands KY1-9002. Purpose: Any lawful activity. (212) 360-3405, by emailing revenue@parks. nyc.gov, provisions of filed judgment and terms of sale. Index opportunities; manage large transac- Arts. of Org. filed with Mr. Delano or by writing to the City of New York Department of Parks Number 18755/07. STEVEN J. BAKER, ESQ., Referee. Solomon, Cayman Islands Registrar of & Recreation, Attention: Revenue Division, The Arsenal, tional & analytical datasets using KRISS & FEUERSTEIN LLP Attorney(s) for Plaintiff 360 Exempted Limited Partnerships, Ground Fl., Notice of Formation of Divorce-Your- 830 5th Ave., Room 407, New York, NY 10065. Lexington Avenue, Suite 1200, New York, NY 10017 Microsoft SQL Server; implement Citrus Grove Bldg., Goring Ave., George Jewelry, LLC. Arts. of Org. filed with Secy. TELECOMMUNICATION DEVICE FOR THE DEAF (TDD) real-time execution engines using Town, Grand Cayman, Cayman Islands. of State of NY (SSNY) on 10/29/08. Office location: NY County. SSNY designated as 212-504-4115 ActiveX, & .NET technologies. Mail Notice of Qualification of Blackstone Real Purpose: Any lawful activity. agent of LLC upon whom process against Estate Special Situations PE Fund L.P. CV to Oz Management LP, Attn: B. it may be served. SSNY shall mail process Authority filed with Secy. of State of NY Scanlon ref job code “cnyEM,” 9 West to: c/o Jarne R. Kratz, P.C., 223 Montauk INVESTMENT (SSNY) on 1/16/09. Office location: NY Notice of Formation of DIPLOMAT CEN- Hwy., Ste. 102, Hampton Bays, NY 11946. 57th Street, 39th Fl., NY, NY 10019. County. LP formed in Delaware (DE) on TRE, LLC. Arts. of Org. filed with Secy. of OPPORTUNITY Purpose: any lawful activity. 12/23/08. SSNY designated as agent of State of NY (SSNY) on 5/31/07. Office LP upon whom process against it may be location: New York County. Principal office WANTED Structured Products Analyst, NYC, served. SSNY shall mail process to: c/o of LLC: 55 Fifth Ave., NY, NY 10003-4398. SSNY designated as agent of LLC upon NOTICE OF FORMATION of Braverman, Equity Partners/Investors - Rare NY. Build framework & infrastructure The Blackstone Group L.P., 345 Park Ave., PLLC. Arts. Of Org. filed with Secy. Of opportunity. Booming & profitable, to eval relative value & ID credit NY, NY 10154. Registered Agent: CT whom process against it may be served. SSNY shall mail process to Michael State of N.Y. (SSNY) on 12/23/08. Office 10 year old company doing $5.0 mil+. trends for investing in distressed Corporation System, 111 Eighth Ave., NY, location: New York County. SSNY desig- Executive ground transportation NY 10011. DE address of LP: c/o The Rudder, 55 Fifth Ave., 15th Fl., NY, NY Mortgage-backed Securities/Asset- 10003-4398, registered agent upon whom nated as agent of PLLC upon whom company seeking new growth capital. backed Securities sectors. Bachelor’s Corporation Trust Company, 1209 Orange process against it may be served. SSNY Unlimited potential. Will do over St., Wilmington, DE 19801. Name/address and at which process may be served. degree or foreign equiv in Bus, Engg Purpose: Any lawful activity. shall mail process to: 1 Gramatan Rd., 1.0 mil profit this year. of genl. ptr. available from SSNY. Cert. of Pleasantville, NY 10570. Principal business $500 to 1.0 mil needed. or rel quant field, w/2 yrs of lead LP filed with DE Secy. of State, Federal & location: 225 Broadway, Ste. 1901, NY, NY Can be structured as part loan with equity. direct collateral exp at a global bulge Duke of York Sts., Dover, DE 19901. Notice of Qualification of OneSeven 10007. Purpose: Any lawful activity. Call 908-692-6533 bracket IB w/focus on non-agency Purpose: any lawful activities. Advisors, LLC. App. For Auth. filed with 1149608 w.o. RMBS (residential mortgage back Secy. of State of N.Y. (SSNY) on securities) to conduct collateral NOTICE OF FORMATION OF StillTasty LLC. 12/15/2008. Office location: New York Notice of Formation of BRAMCO STEEL PERSONALIZED analysis and identify potential trade Article of Organization filed with the County. LLC formed in DE on 12/10/2008. LLC. Arts. of Org. filed with Secy. of State opps reqd; requires Engg or software Secretary of State of NY (SSNY) on SSNY designated as agent of LLC upon of NY (SSNY) on 12/23/08. Office loca- MATCHMAKING whom process against it may be served. bkgnd with knowl of basic program- 01/05/09 Office location NEW YORK tion: New York County. Principal office of County. SSNY has been designated as SSNY shall mail process to: 623 Fifth Ave., ming langs (C, C++ or Visual Basic) th LLC: 15 W. 54rd St., Ste. 29D, NY, NY agent upon whom process against it may 14 Fl., NY, NY 10022. DE address of LLC: to oversee construction & analytical 10019. SSNY designated as agent of LLC be served. The Post Office address to 615 S. Dupont Highway, Dover, DE 19901. upon whom process against it may be framework. Mail CV to Oz which the SSNY shall mail a copy of any Cert. of Form. filed with DESS, P.O. Box 898, served. SSNY shall mail process to Stein Management LP, Attn: B. Scanlon, process against the LLC served upon Dover, DE 19903. Purpose: to engage in any Riso Mantel, LLP, Attn: Ivan W. Dreyer, ref job code “cnyAM,” 9 West 57th him/her is C/O the LLC 51 West 84th act or activity lawful under the NY LLC Law. 405 Lexington Ave., NY, NY 10174. The Street, 39th Fl., NY, NY 10019. Street, Apt. 8. New York, NY 10024. company will be formed effective as of Purpose of LLC: to engage in any lawful Notice of Formation of CAMPUS HILL 01/01/09. Purpose: Any lawful activity. act or activity. Street address of Principal INVESTMENTS, LLC. Arts. of Org. filed with Business location is: 51 West 84th Street, Secy. of State of NY (SSNY) on 12/03/08. Apt. 8. New York, NY 10024. Office location: New York County. Principal Notice of Qualification of La Sac Capital REAL ESTATE office of LLC: 381 Park Ave. South, Ste. Partners, LLC, App. for Auth. filed Sec’y Notice of Formation of 19 WEST 70TH 417, NY, NY 10016. SSNY designated as of State (SSNY) 10/3/08. Office location: STREET, LLC. Arts. of Org. filed with Secy. agent of LLC upon whom process against it NY County. LLC org. in DE 9/26/08. SSNY designated as agent of LLC upon whom COMMERCIAL of State of NY (SSNY) on 12/15/08. Office may be served. SSNY shall mail process to location: New York County. Principal Edward D. Feldstein, Esq., 10 Weybosset process against it may be served. SSNY office of LLC: 27 W. 70th St., Apt. #2A, NY, St., 8th Fl., Providence, RI 02903. Purpose: shall mail copy of process to c/o Nat. Reg. Agents, 875 Ave of the Americas, NY, NY PRIME MADISON AVE STOREFRONT NY 10023. SSNY designated as agent of Any lawful activity. 10001. DE office addr.: 160 Greentree Dr., 721 Madison Avenue (63-64th Sts.) LLC upon whom process against it may be served. SSNY shall mail process to the Ste. 101, Dover, DE 19904. Cert. of Form. Notice of Formation of CMA ASSOCIATES VISIT OUR WEBSITE LLC, c/o James Veltri at the principal office on file: SSDE, Townsend Bldg., Dover, DE 800 SQUARE FEET LLC. Arts. of Org. filed with Secy. of State of the LLC. Purpose: Any lawful activity. 19901. Purpose: any lawful activities. Available Immediately of NY (SSNY) on 11/17/08. Office location: CRAINSNEWYORK.COM New York County. SSNY designated as WINTER MGMT 212 616-8900 CUTS FOR CATS LLC, a domestic Limited agent of LLC upon whom process against it Notice of Formation of ROOTSTOCK Liability Company (LLC) filed with the Sec may be served. SSNY shall mail process to HOLDINGS LLC. Arts. of Org. filed with Secy. of State of NY on 11-3-08. NY Office loca- c/o Andrew B. Leider, Esq., 27 Downing St., of State of NY (SSNY) on 11/19/08. Office tion: NY County. SSNY is designated as NY, NY 10014. Purpose: Any lawful activity. location: New York County. Principal office agent upon whom process against the LLC of LLC: c/o Union Square Hospitality Group, may be served. SSNY shall mail a copy of LLC, Attn: David A. Swinghamer, 24 Union PUBLIC & LEGAL NOTICES any process against the LLC served upon GREYHAWK ENTERPRISES, LLC Articles Square East, NY, NY 10003. SSNY designated him/her to The LLC, 261 Fifth Ave., Ste. of Org. filed NY Sec. of State (SSNY) as agent of LLC upon whom process against 1905, NY, NY 10016. General Purposes. 11/17/2008. Office in NY Co. SSNY desig. it may be served. SSNY shall mail process to agent of LLC upon whom process may be the LLC at the address of its principal office. Notice of Qualification of 40 MERCER Notice of Formation of 142 EAST 80th LLC. served. SSNY shall mail copy of process Purpose: Any lawful activity. GARAGE LLC. Authority filed with Secy. of Arts. of Org. filed with Secy. of State of NY Notice of Qualification of IOC PROJECT 7 to 453 FDR Dr. - C-2004, NY, NY 10002, State of NY (SSNY) on 01/08/09. Office (SSNY) on 8/15/08. Office location: NY LLC. Authority filed with Secy. of State of which is also the prinicipal business loca- location: New York County. LLC formed in County. SSNY designated as agent of LLC NY (SSNY) on 11/24/08. Office location: tion . Purpose: Any lawful purpose. Notice of Qualification of Online National Delaware (DE) on 12/04/08. Principal upon whom process against it may be New York County. LLC formed in Yellow Pages, LLC. Authority filed with office of LLC: c/o Hines Interests Limited served. SSNY shall mail process to: Delaware (DE) on 11/19/08. Principal Secy. of State of NY (SSNY) on 1/13/09. Partnership, 885 Third Ave., Ste. 2700, Khedouri Ezair, 931 Madison Ave., NY, NY office of LLC: 23-25 Greene St., NY, NY Notice of Formation of GULF ROAD HART- Office location: NY County. LLC formed in NY, NY 10022. SSNY designated as agent 10021. Purpose: any lawful activity. 10013. SSNY designated as agent of LLC FORD LLC. Arts. of Org. filed with Secy. of Delaware (DE) on 11/5/08. SSNY designat- of LLC upon whom process against it may upon whom process against it may be State of NY (SSNY) on 12/31/08. Office ed as agent of LLC upon whom process be served. SSNY shall mail process to Notice of formation of Kong’s Real Estate served. SSNY shall mail process to c/o location: New York County. Principal office against it may be served. SSNY shall mail Attn: David S. Penick at the principal management LLC, Art.of Orig filed Sec’y Corporation Service Co., 80 State St., of LLC: c/o Ambassador John L Joeb Jr., process to: c/o The LLC, 853 Broadway, office of the LLC. DE address of LLC: of state(SSNY) on 10/30/08. Office loca- Albany, NY 12207-2543. DE address of 50 Broad St., Ste. 1137, NY, NY 10004. Ste. 1101, NY, NY 10003. DE address of 2711 Centerville Rd., Ste. 400, tion NY County. SSNY designed as agent LLC: 2711 Centerville Rd., Ste. 400, SSNY designated as agent of LLC upon LLC: c/o Incorporate-US.com, Inc., 501 Wilmington, DE 19808. Arts. of Org. filed of LLC upon upon whom process against Wilmington, DE 19808. Arts. of Org. filed whom process against it may be served. Silverside Road, #52, Wilmington, DE with Secy. of the State of DE, Corporation it may be served. SSNY shall mail copy with Secy. of State, DE, Townsend Bldg., SSNY shall mail process to Corporation 19809. Arts. of Org. filed with DE Secy. of Dept., Loockerman & Federal St., Dover, of process to 157 East 72nd St, Apt 14G, 401 Federal St., Ste. 4, Dover, DE 19901. Service Co., 80 State St., Albany, NY State, Townsend Bldg., Dover, DE 19901. DE 19901. Purpose: Any lawful activity. NY, NY 10021. Any unlawful activities. Purpose: Any lawful activity. 12207-2543. Purpose: Any lawful activity. Purpose: any lawful activity.

24 | Crain’s New York Business | February 2, 2009 nb05p25-26cls.qxp 1/29/09 2:38 PM Page 25

PUBLIC & LEGAL NOTICES

Name of For. LP: BEOWULF CAPITAL Notice of Qualification of Dandelion.com, Notice of Formation of STEPHEN REICH Notice of Qualification of JEEREDDI PART- Notice of Qualification of Pequot Matawin MANAGEMENT LP. Appl. for Auth. filed LLC. Authority filed with NY Dept. of State LLC. Arts. of Org. filed with Secy. of NERS, LLC. Authority filed with Secy. of 12/08 Opportunity Fund, L.P. Authority with Sec. of State of NY: 11/25/08. Jurisd. on 12/19/08. NYS fict. name: Dandelion.com State of NY (SSNY) on 01/06/09. Office State of NY (SSNY) on 12/05/08. Office filed with NY Dept. of State on 12/19/08. and date of org.: DE 4/21/08. Principal Branded Content, LLC. Office location: NY location: New York County. Principal location: New York County. LLC formed in Office location: NY County. LP formed in bus. loc.: 575 Broadway, 3rd Floor, New County. LLC formed in DE on 12/17/08. office of LLC: 141 E. 55th St., NY, NY Delaware (DE) on 12/02/08. Principal office DE on 12/3/08. NY Sec. of State designat- York, NY 10012. NY State office loc.: New NY Sec. of State designated as agent of 10022. SSNY designated as agent of of LLC: 594 Broadway, Ste. 509, NY, NY ed as agent of LP upon whom process York Cty. Sec. of State designated as agent LLC upon whom process against it may LLC upon whom process against it may 10012. SSNY designated as agent of LLC against it may be served and shall mail upon whom process against it may be be served and shall mail process to: be served. SSNY shall mail process to upon whom process against it may be process to the principal business addr.: served. Sec. of State shall mail copy of Mindy Goldberg, 435 Hudson St., 3rd Fl., the LLC at the address of its principal served. SSNY shall mail process to the LLC c/o Pequot Capital Management, Inc., 500 process to: 575 Broadway, 3rd Floor, New NY, NY 10014, principal business addr. DE office. Purpose: Any lawful activity. at the address of its principal office. The Nyala Farm Rd., Westport, CT 06880. DE York, NY 10012. Addr. of LP in DE is: c/o addr. of LLC: c/o The Corporation Trust registered agent of the company upon addr. of LP: c/o The Corporation Trust Co., National Corporate Research, Ltd., 615 Co., 1209 Orange St., Wilmington, DE whom and at which process against the 1209 Orange St., Wilmington, DE 19801. South DuPont Hwy., Dover, DE 19901. 19801. Arts. of Org. filed with DE Sec. of LURIE, ILCHERT, MAC DONNELL & RYAN, company can be served is Naveen Jeereddi, Name/addr. of genl. ptr. available from NY Name/addr. of GP avail. from Sec. of State. State, Federal & Duke of York Sts., Dover, LLP, Articles of Org. filed N.Y. Sec. of 594 Broadway, Ste. 509, NY, NY 10012. DE Sec. of State. Cert. of LP filed with DE Authorized office in DE where Cert. of LP DE 19901. Purpose: any lawful activity. State (SSNY) 17th day of November address of LLC: 2711 Centerville Rd., Ste. Sec. of State, Townsend Bldg., Dover, DE is filed is: Sec. of State, Corporation Dept., 2008. Office in New York Co. at 475 Park 400, Wilmington, DE 19808. Arts. of Org. 19901. Purpose: any lawful activity. Duke and York Streets, Dover, DE 19901. Avenue South, Suite 2800, New York, New filed with Secy. of State of the State of DE, Purpose: any lawful activity. Notice of Formation of AZOTH GROUP York 10016. SSNY design. agt. Upon 401 Federal St., Dover, DE 19901. LLC. Arts. of Org. filed with Secy. of State whom process may be serve. SSNY shall Purpose: Any lawful activity. Notice of Formation of NC REGENCY VIL- of NY (SSNY) on 01/13/09. Office loca- mail copy of process to 475 Park Avenue LAGE II, LLC. Arts. of Org. filed with Secy. NOTICE OF FORMATION OF MERCADO tion: New York County. Principal office of South, Suite 2800, New York, New York of State of NY (SSNY) on 01/09/09. Office DESIGN, LLC. Article of Organization filed LLC: 264 W. 25th St., Apt. 3W, NY, NY 10016. Purpose: Practice of Law. Notice of Qualification of Kondaur location: New York County. SSNY desig- with the Secretary of State of NY (SSNY) 10001. SSNY designated as agent of LLC Ventures VII, L.L.C. Authority filed with nated as agent of LLC upon whom process on 05/22/2008 Office location NEW YORK upon whom process against it may be NY Dept. of State on 1/5/09. Office loca- against it may be served. SSNY shall mail Notice of Qualification of Technic Real County. SSNY has been designated as served. SSNY shall mail process to the tion: NY County. LLC formed in DE on process to c/o Cohen & Company, Inc. Property LLC. Authority filed with Secy. of agent upon whom process against it may LLC at the address of its principal office. 12/22/08. NY Sec. of State designated as Real Estate, 9 E. 40th St., 10th Fl., NY, NY State of N.Y. (SSNY) on 7/14/08. Office be served. The Post Office address to Purpose: Any lawful activity. agent of LLC upon whom process against 10016. Purpose: Any lawful activity. which the SSNY shall mail a copy of any location: New York County. LLC formed in it may be served and shall mail process to process against the LLC served upon Delaware (DE) on 6/26/08. SSNY desig- the principal business addr.: c/o Pequot him/her is C/O the LLC 131 E. 23RD ST. Notice of Formation of CURLEY & MULLEN nated as agent of LLC upon whom Capital Management, Inc., 500 Nyala Farm Notice of Qualification of LIGHTSPEED STE. 3F. NEW YORK, NY 10010. Purpose LLP. Cert. of Reg. filed with Secy. of State process against it may be served. SSNY Rd., Westport, CT 06880. DE addr. of LLC: EDUCATION, LLC. Authority filed with of LLC: to engage in any lawful act or of NY (SSNY) on 12/9/08. Office location: shall mail process to: c/o Wuersch & c/o The Corporation Trust Co., 1209 Secy. of State of NY (SSNY) on 12/15/08. activity. Street address of Principal New York County. Principal office of LLP: Gering, 100 Wall St., 21st Fl., New York, Orange St., Wilmington, DE 19801. Cert. Office location: New York County. LLC Business location is: 131 E. 23RD ST. 440 S. Broad St., Philadelphia, PA 19146. NY 10005. DE address of LLC: 874 of Form. filed with DE Sec. of State, formed in Delaware (DE) on 11/3/08. STE. 3F. NEW YORK, NY 10010. SSNY designated as agent of LLP upon Walker Road, Suite C, Dover, Delaware Townsend Bldg., Dover, DE 19901. Principal office of LLC: 148 Madison Ave., whom process against it may be served. 19904. Arts. of Org. filed with DE Secy. of Purpose: any lawful activity 9th Fl., NY, NY 10016. SSNY designated as SSNY shall mail process to the LLP at the State, Townsend Bldg., Dover, DE 19901. agent of LLC upon whom process against Notice of Formation of 345 RESIDENCE, address of its principal office. Purpose: Purpose: any lawful activity. it may be served. SSNY shall mail process LLC. Arts. of Org. filed with Secy. of State Any lawful activity. Notice of Formation of 326-338 E 100th to c/o Corporation Service Co. (CSC), 80 of NY (SSNY) on 12/04/08. Office loca- LLC. Arts. of Org. filed with Secy. of State State St., Albany, NY 12207. DE address of tion: New York County. Principal office of ON A WINK AND A PRAYER, LLC Articles of NY (SSNY) on 12/30/08. Office loca- LLC: c/o CSC, 2711 Centerville Rd., Ste. LLC: 405 W. 45th St., 2C, NY, NY 10036. Name: AZURE PROPERTIES LLC. Art. Of of Org. filed NY Sec. of State (SSNY) tion: NY County. SSNY designated as 400, Wilmington, DE 19808. Arts. of Org. SSNY designated as agent of LLC upon Org. Filed Sec. Of State of NY 11/07/08. 12/16/08. Office in NY Co. SSNY desig. agent of LLC upon whom process against filed with Secy. of State of the State of DE, whom process against it may be served. Off. Loc.: New York Co. SSNY designated agent of LLC upon whom process may be it may be served. SSNY shall mail process 401 Federal St. - Ste. 4, Dover, DE 19901. SSNY shall mail process to Kalnick Klee & as agent upon whom process against it served. SSNY shall mail copy of process to: c/o The LLC, 632 Broadway, 7th Fl., NY, Purpose: Any lawful activity. Green LLP, 767 Third Ave., NY, NY 10017- may be served. SSNY to mail copy of to 1035 Park Ave., Ste. 15A, NY, NY NY 10012. Purpose: any lawful activity. 2023. Purpose: Any lawful activity. process to THE LLC, c/o Gary Gonzalez, 10028. Purpose: Any lawful purpose. 138 Ravine Avenue, West Caldwell, NJ 07006. Purpose: Any lawful act or activity. Notice of Qualification of JFK BEVERAGE, Notice of Qualification of SIGNATURE Notice of Qualification of W2008 INTERNA- LLC. Authority filed with Secy. of State of Coming Up COMMUNITY MANAGEMENT, LLC. TIONAL FINANCE SUB LTD., LLC. Authority NY (SSNY) on 12/15/08. Office location: on the Calendar Authority filed with Secy. of State of NY Notice of Qualification of Neuberger filed with Secy. of State of NY (SSNY) on New York County. LLC formed in Delaware (SSNY) on 12/18/08. Office location: New Berman Investments LLC. Authority filed 12/11/08. Office location: New York (DE) on 12/2/08. Principal office of LLC: York County. LLC formed in Delaware (DE) with NY Dept. of State on 12/2/08. Office County. LLC formed in Cayman Islands on 545 E. John Carpenter Fwy., Ste. 1400, February 9th on 03/20/08. Principal office of LLC: 9 E. location: NY County. Principal business 04/18/08. Principal office of LLC: 85 Broad Irving, TX 75062. LLC agrees to use ficti- Small Business 40th St., 9th Fl., NY, NY 10016. SSNY des- addr: 605 3rd Ave., NY, NY 10158. LLC St., NY, NY 10004. SSNY designated as tious name of PACIFIC ASSET HOLDINGS ignated as agent of LLC upon whom formed in DE on 11/5/08. NY Sec. of State agent of LLC upon whom process against LLC while conducting business in NY. February 16th process against it may be served. SSNY designated as agent of LLC upon whom it may be served. SSNY shall mail process SSNY designated as agent of LLC upon shall mail process to c/o Corporation process against it may be served and shall to c/o Goldman, Sachs & Co., Attn: General whom process against it may be served. Real Estate Service Co. (CSC), 80 State St., Albany, mail process to: c/o CT Corporation Counsel at the principal office of the LLC. SSNY shall mail process to c/o Corporation NY 12207-2543. DE address of LLC: c/o System, 111 8th Ave., NY, NY 10011, regd. Cayman Islands address of LLC: Maples Service Co., 80 State St., Albany, NY February 23rd CSC, 2711 Centerville Rd., Ste. 400, agt. upon whom process may be served. Corporate Services Limited, Ugland House, 12207-2543. DE address of LLC: 2711 Banking Wilmington, DE 19808. Arts. of Org. filed DE addr. of LLC: c/o The Corporation Trust P.O. Box 309, Grand Cayman, Cayman Centerville Rd., Ste. 400, Wilmington, DE with Harriet Smith Windsor, Secy. of State, Co., 1209 Orange St., Wilmington, DE Islands KYI-1104. Arts. of Org. filed with 19808. Arts. of Org. filed with Secy. of March 2nd Div. of Corporations, John G. Townsend 19801. Cert. of Form. filed with DE Sec. of Governor, Govt. Admin. Bldg., Elgin Ave. State of DE, Div. of Corporations, John G. Bldg., 401 Federal St., Ste. 4, Dover, DE State, 401 Federal St., Dover, DE 19901. George Town, Grand Cayman. Purpose: Townsend Bldg., 401 Federal St., Dover, DE NYC Tourism 19901. Purpose: Any lawful activity. Purpose: all lawful purposes. Any lawful activity. 19901. Purpose: Any lawful activity.

February 2, 2009 | Crain’s New York Business | 25 CNYB 02-02-09 A 26 1/30/2009 8:11 PM Page 1

The firm plans to open a new $35 million, 225,000-square-foot, state- Private high schools multiply of-the-art facility for its Claremont D.C. to call high school, and Aaron Academy Continued from Page 3 top universities. mand for private education,” says will have its own $25 million, the shots a sense of civic engagement in kids,” “In times of uncertainty, most Michael Koffler, chief executive of 65,000-square-foot facility. says David Liebmann, head of the parents would rather send their MetSchools, which operates Clare- Greenwich Village High School. child to an existing school,” says mont Preparatory and Aaron, Raising money, saving money Continued from Page 1 Consultants say starting a new Emily Glickman, president of Aba- which both currently provide K-8 meanwhile, Greenwich has raised and traders. school in New York, even during cus Guide Educational Consulting. programs and will expand to grades $3 million from donors and has al- “I think it could get really ugly,” stellar economic conditions, is “You don’t want your child to be a 9 through 12. “Interest in the high ready built a 10,000-square-foot fa- says Steven Hall,managing director tough. The costs are astronomical guinea pig in a new school.” school is far greater than the num- cility in a loft building on Vandam of Steven Hall & Partners, a con- with regard to real estate and insur- ber of youngsters we can accommo- Street, between Sixth Avenue and sulting firm that has advised invest- ance. Parents still wlling to pay date.” Varick Street. Conscious of the eco- ment bank Lazard Ltd.on compen- Six months ago, Christopher even so, parents have been knock- Greenwich declined to disclose nomic environment, the school will sation matters. Whittle, a former Esquire owner, ing on the new schools’ doors. Aaron applicant numbers for its 45 seats, spend funds carefully. Instead of The government has put its foot scrapped plans to open Nations Academy received more than 125 in- but “numbers are healthy,” Mr. building a theater or gym, Green- down on the industry’s biggest beg- Academy, an international private quiries. More than 200 families have Liebmann says. wich will rent athletic space at near- gar, Citigroup Inc. school, because financing fell inquired about Claremont’s high Greenwich expects total enroll- by Pier 40 and arts space at Soho When the company went to the through and real estate developer school, and there is currently a wait- ment in grades 9 through 12 to Playhouse, says Mr. Liebmann, feds for a cash infusion in late No- The Durst Organization, which ing list, according to Dana Haddad, reach 300 by 2013. Claremont ex- adding that money will go toward ac- vember, it had to adhere to much controls the land where the school director of admissions and financial pects to reach 480 in five years, and ademics first. stricter conditions on bonuses than was supposed to be built,pulled out. aid at Claremont. Aaron Academy 480 in five to six He remains optimistic and ex- when it and other banks got bailout In addition, without the 100- The school has processed 100 ap- years. pects to raise $12 million to $17 mil- cash in October.In particular, it had year-plus track record of a Dalton plications for just 40 spots, half of Each has ample resources. Clare- lion over the next five years. to limit its 2008 and 2009 bonus or a Horace Mann, attracting stu- which will be filled by existing Clare- mont and Aaron Academy are “People will spend their last 5 pools for senior executives to 60% dents could be a challenge. High mont eighth graders. backed by MetSchools, which runs cents educating their kids,” says of the prior year’s payouts. It also schools, in particular, rely on their “There is not enough capacity seven other private schools across the Amanda Uhry,owner of Manhattan had to consent to pay a majority of reputation of sending graduates to around town to deal with the de- five boroughs. Private School Advisors. 2008 bonuses in deferred cash or shares, according to documents posted on the Treasury Depart- advising pharmaceutical giant Pfizer ment’s Web site. on its acquisition of Wyeth, while American International Group Wall St. 2.0 begins to emerge Morgan Stanley is advising Wyeth. Inc. also had to agree to limit pay Helping to clinch Goldman’s role when the government rescued it Continued from Page 1 While the new Wall Street will cents on the dollar. was its willingness to advance Pfizer from collapse in September. Senior have seen their shares plunge 47% feature lower profits and pay,a slew of Goldman, Morgan and the oth- $4.5 billion to help get the deal done, executives’ bonuses for 2008 and and 53%, respectively. new regulations and Uncle Sam for a er surviving independents also are something that Lazard—which got 2009 cannot exceed average bonus- Behind Wall Street’s surprising shareholder, the rebooted independ- not laboring under the burden of no bailout money—was unable to do. es paid in the prior two years, and strength are signs that life is begin- ent financial firms enjoy some huge billions of dollars worth of souring the 2009 bonuses must be no more ning to return to markets ranging advantages over their hobbled big- consumer loans, including credit Lazard’s leg up than 3.5 times the base salary and from corporate mergers to junk bank rivals. For starters, both Gold- card debt. Morgan Stanley dodged even without Washington’s help, target bonus paid to senior officers bonds. There’s also a belief that the a bullet by spinning off credit card Lazard’s prospects are looking last year. independent financial services issuer Discover two years ago. brighter these days, largely because firms—unlike their big-bank ri- ‘We are “When the music stopped, con- of its big corporate-restructuring Big rewards for recovery? vals—are still in good enough shape sumer lending wasn’t on the play- division. That unit generated $72 those developments, combined to pick themselves up and seize their beginning to see book at Morgan Stanley or Gold- million of revenue through the first with the latest uproar, have some opportunities. man,” says CreditSights analyst nine months of last year. But with Wall Streeters worried that the gov- “We are beginning to see some some signs of David Hendler. the ranks of troubled companies and ernment will begin determining pay signs of movement,” Morgan Stan- Now, the two are wasting little outright bankruptcies exploding, for executives whose job it is to help ley’s chief financial officer, Colm movement’ time using their $10 billion each in analysts at Keefe Bruyette & Woods restore the firms to health. Indeed, Kelleher, said at an investor confer- government bailout money to re- figure that Lazard’s restructuring Mr. Hall argues that rather than ence last week.There are “encourag- make themselves for the new era. revenues will more than double this constrain pay at bailed-out banks, ing first steps toward more normal Morgan put a $2.7 billion slug of its year. Among its recent clients are the feds should offer big rewards for markets.” cash to work last month when it Lehman Brothers and home builder bankers who lead their firms out of That hopeful assessment was man and Morgan Stanley have large- agreed to snap up a majority stake in Hovnanian Enterprises. the mess and repay their loans to buttressed last week by a healthy ly cleaned up their balance sheets. Citigroup’s Smith Barney at a fire- Meanwhile,a handful of narrow- taxpayers. sprinkling of new deals. Most no- Goldman has written down $7 sale price. Courtesy of that pur- ly focused, thinly staffed boutiques But with public anger over Wall table was Tuesday’s $68 billion bid billion and Morgan $22 billion, ac- chase, what was once one of the are also poised to prosper by picking Street compensation at an all-time by Pfizer to take over Wyeth,and on cording to Bloomberg data. As a re- biggest risk-takers in banking will up work from fallen rivals and the high, more oversight seems in- Thursday’s successful $5.5 billion sult, Morgan Stanley values its re- generate half of its revenue from the walking wounded. Mergers special- evitable. bond issue from AT&T. maining $3 billion of Alt-A humdrum business of offering ist Greenhill & Co., for example, is “I’m not in a great position,” Mr. “There could be life for these mortgages at no more than 35 cents IRAs, annuities and other financial one of a handful of financial institu- Hall, the New York compensation guys yet,” says Gary Townsend, on the dollar, according to Oppen- products to millions of consumers. tions whose stock has actually held consultant says. “This is the kind of chief executive of hedge fund Hill- heimer & Co., while Citi values its Goldman scored a coup of its own its ground,rising 3% over the past 12 discussion that you’ve lost before it Townsend Capital. $13 billion worth as highly as 59 just last week by landing a lead role months. even starts.”

and marketing. “But looking for- Museum executives say the fiscal So far this year, the Queens Mu- ward, we don’t know where this crisis could affect the size, type and seum, which had a $4.5 million Museum picture dark economy is going.” schedule of their shows—many of budget in 2008,has lost $460,000 in Ironically, many institutions had which are organized years in ad- city funding and has received bad Continued from Page 1 $620 million endowment, or about record visitors last summer and dur- vance—for a long time. news from a number of banking recessions. But this time, funding $170 million, and $3.1 million in ing the holiday season. Those in- For example, the Queens Muse- sponsors. It also recently learned cutbacks, the collapsing financial city funding.Additionally,a number creases didn’t produce enough in- um’s current exhibit, Queens Inter- that one of its important contribu- markets’ impact on endowments of companies canceled holiday par- come to offset the losses, however, national 4,is a biennial that was sup- tors had invested with Bernard and sponsorships, and an expected ties at the museum—some of those and tourism is expected to wane as posed to open last year. But officials Madoff. slump in tourism have raised the businesses no longer even exist. the global recession deepens. delayed the launch until Jan. 24 be- Mr. Finkelpearl has cut four threat to unprecedented levels. The museum is working to cut its cause of budget constraints. staffers and implemented a manda- “You have institutions that $170 million budget by 10% and is Impact could be felt for years “We could have done the tory two-week furlough.He himself would have previously been held eliminating about 10% of its 1,000- “we had our highest attendance $200,000 version or the $50,000 took a month off without pay. The harmless with this because of their person staff through buyouts, attri- month ever in July,”says Dan Wem- version,” says Tom Finkelpearl, di- losses have been heavy, but he says endowments,”says Antonio Quesa- tion and layoffs. It also curtailed its pa, spokesman for the New York rector of the Queens Museum. 2010 will be much worse. da, executive director of the Cultur- education employment program, Hall of Science in Queens.But now, “This show cost $60,000. The pub- “I went into a board meeting al Institutions Group.“They are be- which hired high school and college he says, “much of the audience is lic doesn’t know what it’s not get- with my finance committee and a ing equally affected, because their students as tour guides. coming during the free hours.” ting.” trustee said, ‘You’re not being pes- endowments have lost 20% to 45% “We want to have as little disrup- The Hall of Science plans to Mr. Finkelpearl says that the simistic enough,’ ” Mr. Finkelpearl of their value.” tion to the visitor experience as pos- slash its $13 million budget for the museum will most likely be forced to says. “Now, all the funding for next The American Museum of Nat- sible,” says Charles McLean, senior next fiscal year, which begins July 1, cancel a number of popular educa- year’s exhibitions is drying up.[Peo- ural History has lost a quarter of its vice president for communications by at least 15%. tion and senior programs next year. ple] will see a big difference.” I

26 | Crain’s New York Business | February 2, 2009 CNYB 02-02-09 A 27 1/29/2009 9:08 PM Page 1

BUSINESS CORPORATE LADDER Ritz faces financial realities under new GM PAGE 29 buck ennis

GOTHAM GIGS Vet detective as medical coordinator of animal cruelty cases at the ASPCA, DR. ROBERT REISMAN, 54, rehabilitates abused pets and builds cases against their careless owners. “These animals are at the mercy of people who don’t care. … Helping them is very rewarding,” he says. BIOLOGY 101 Because of his passion for animals and science, veterinary school seemed like a good choice. After graduating from SUNY Albany with a biology degree, Dr. Reisman went the College of Veterinary Medicine at Cornell. In 1987, he relocated to New York City, and he joined the ASPCA in 1988. SAVING LIVES By 2005, Dr. Reisman was working solely on animal cruelty cases. His team has saved animals in PLANNING A FAMILY: states of neglect and placed Becky Fawcett and her husband adopted one them in new homes. Despite child, Jake, and are in the lagging economy, adop- the process of CAN WE tions were up 20% in 2008. adopting another, despite the high fees. PET PROJECTS Dr. Reisman, who has two dogs, two cats and 13 fish of his own, served as president of the Veterinary SWING Medical Association in 2007 and edits its newsletter. He plans to expand the ASPCA’s internship program and continue saving animals’ lives. —maia blume IT? EXPERT OPINIONS Baby boom may be WARM TREATS ON FRIGID DAYS ending as parents maribelle is one of the best spots in the city to indulge wonder if they can yourself with a cup of hot chocolate. If you want to be afford children immersed in the tea culture, the T Salon in the Chelsea Market has every kind of tea BY MIRIAM KREININ SOUCCAR you can imagine, from infusions and herbs to flowers nearly every night, the dreaded Ex- that blossom beautifully in the cel spreadsheet comes out. tea pot. Payard Bistro on the Shira Weiss and her husband turn to Upper East Side has great the computer program over and over coffee, hot chocolate and again to recalculate their household pastries. Downtown, budget. They aren’t trying to figure out Ceci Cela and MILK MONEY whether they can afford a larger house or Balthazar also a new car. They are trying to make what have delicious they once assumed would be an obvious pastries. $10,158 $348,418 $418,702 BABY’S RAISING A CHILD RAISING A CHILD WHO decision: whether to have a third child. —remi laba Both Ms. Weiss, a public relations Owner FIRST YEAR THROUGH COLLEGE GOES TO A PRIVATE COLLEGE Bagatelle restaurant Source: BabyCenter See CAN PARENTS on Page 28 buck ennis

February 2, 2009 | Crain’s New York Business | 27 CNYB 02-02-09 A 28 1/30/2009 12:46 PM Page 1

BUSINESS LIVES Can parents afford children? Continued from Page 27 times of economic uncertainty. But since the recession started, the consultant, and her husband, direc- During and after the Great De- 27-year-old and her husband have tor of sales and marketing at a den- pression,women went from having become too scared to take the tal imaging company,still have jobs. an average of three children during plunge. But fear over the worsening reces- the previous decade to two for the “Businesses go out real fast in sion is putting them into a prepar- first time in U.S. history. And fol- this market, so I need to be working tum depression. lowing the 1973 recession, birth at 100%,”Ms.Fennell says.“If I had “We always wanted to have three rates fell to 65.0 per 1,000 people to go on bed rest or something dur- kids, but there’s that question mark in 1976 from 68.8 in 1973, according the pregnancy, I don’t think we hanging over the economy.We don’t ing to the National Center for could survive at this point. And know if it’s going to get better or Health Statistics. then, of course, there’s paying for worse,”says 35-year-old Ms.Weiss. The downturn in the New York the baby, too.” buck ennis “So here we are wondering,is a third City area—where large families FIRST IN LINE: Jake Fawcett’s parents are helping others adopt children. child a luxury item?” have become a status symbol for the Difficult decisions The great baby boom of the 21st wealthy in recent years—may be the already difficult decision is century may be coming to an end. even sharper because costs for hous- even harder for people who want to GIVING OTHERS A CHANCE After more than five years of Buga- ing and school are higher here than adopt or have to go through lengthy AFTER EXPERIENCING THE DIFFICULTIES and expense of the adoption process boo stroller traffic jams on side- in many parts of the country. and costly fertility treatments. firsthand, one couple decided to start a nonprofit to help other families who walks from the Upper East Side to “One of the perks of being an up- Ms. Weiss turned to IVF to get can’t afford it. Westchester, the economic crisis is pregnant with her second son and Becky and Kipp Fawcett launched HelpUsAdopt.org a year and a half ago, putting a damper on procreation. The whole will need to repeat those treat- offering grants of $500 to $15,000 to assist families with adoption fees. Though it’s too early to know if ments if she decides to have a third. On average, it costs $25,000 to adopt a baby, including fees for social worker birthrates are actually going down, IVF process The whole process costs at least visits, the birth mother’s medical care, and last-minute air tickets. many families are rethinking their $30,000. In their first year, the couple raised enough money from friends and family plans to have a third or fourth Publicist Becky Fawcett and her for the nonprofit to dole out $100,000. They will give away another $50,000 child, or even a first. In a city where costs at least husband spent their life savings of this June, and if donations remain steady, another $50,000 in December. expensive fertility treatments and $200,000 on fertility treatments 14 couples and single women adoption are more common be- $30,000 and finally adoption fees to become So far, are on their way to becoming cause many women put off con- parents.Their son is now 3,and they parents because of the organization. ceiving until they are older, the de- are trying to adopt another baby. “Some of our applicants say that now they can’t even take out a home cision to proceed right now is even Luckily,they paid 90% of the adop- equity loan to pay for their adoption because the value of their home has more vexing. tion fees for their second child be- dropped,” Ms. Fawcett says. “The cost of adoption was prohibitive before the per-middle-class family in Brook- fore her husband, who worked for recession, but now what?” From Pampers to diploma lyn or Manhattan was to have kids Bear Stearns, lost his job. “the current economic climate and send them to private school,” “If we had to pay that money to- has brought more focus on the high says William Frey,a demographer at day, having a second child would can conceive naturally. old to nod their heads in front of cost of raising a child to age 18 and the Brookings Institution. “Those have had to go on hold,” Ms. Faw- Sarah Caron, a freelance writer their dad when she asks them if they then putting a child through col- folks may be especially hard-hit and cett says.“It would kill me right now and editor, is anxious to have a third want a new sibling. lege,” says Susan Newman, a social will probably delay [having] kids for if what stood between me becoming child soon. Her husband, a manag- Despite the worsening reces- psychologist. “As more and more the short term.” a mother again was money.” er at an electronics store, thinks two sion,Ms.Caron is confident she will people lose jobs, couples are being Tammy Kahn Fennell,vice pres- The battle between the bank ac- might be enough, especially now. win out. “I’m sure we’ll work it out forced to think hard before they add ident of VintageRareStuff.com, has count and the biological clock is The couple talks about the sub- somehow in my favor,” she says. to their families.” been married for three years and was creating disagreements in some ject often, and Ms. Caron even “My goal is to start trying again by Fertility rates typically fall in planning to start trying to conceive. marriages,even among couples who coaches her 1-year-old and 3-year- summer.” Diane Keaton memoir THE WEEKS AHEAD THIS WEEK’S EVENTS (212) 684-0854, ext. 0538, or Preregistration required. FEBRUARY 3 [email protected]. (646) 732-7760 or [email protected]. gets $2 million bid B’nai B’rith Real Estate Unit holds FEBRUARY 3 FEBRUARY 5 lunch with speaker Anthony E. Malkin, Taylor Solutions holds NYC real estate Crain’s New York Business and president of W&H Properties. 12 p.m. professionals networking reception. Association of Real Estate Women hold Mr. Clegg, of the William Mor- Book will focus on to 2 p.m., Cornell Club, 6 E. 44th St., 6 p.m. to 9 p.m., 52 Walker St. Free. lecture on the future of the New York ris Agency, has already received an Ivy Room. Fee: $60 in advance, $70 at Preregistration required. (800) 214-2669 economy. 11:30 a.m. to 2 p.m., Club actress’s relationship offer of $2 million, according to two the door. (212) 885-7239 or or [email protected]. 101, 101 Park Ave. Fee: Free for AREW publishing industry executives fa- [email protected]. FEBRUARY 4 members, $120 nonmembers. with her mother miliar with the project. FEBRUARY 3 Nexco holds seminar on market (212) 599-6181. Hard times for the publishing New York Investing Meetup holds opportunities in the Middle East. industry, which saw book sales drop lecture on investing in art. 6:45 p.m. to 9:30 a.m. to 12 p.m., Williams Club, FEBRUARY 9-15 BY MATTHEW FLAMM precipitously at the end of last year, 8:45 p.m., PS 41, 116 W. 11th St., 24 E. 39th St. Fee: $45 members, $80 FEBRUARY 11, 15, 18 have not slowed acquisitions of big- auditorium. Fee: $5. Preregistration nonmembers. (877) 291-4901 or Business Network International holds required. (212) 255-7327. [email protected]. breakfast meeting. 7 a.m. to 8:30 a.m., diane keaton is shopping a mem- ticket titles. FEBRUARY 3 FEBRUARY 4 Carr Business Systems, 112 W. 34th St., oir, but in keeping with the self- Celebrity books are in par- Lower Manhattan Business Solutions Five O’Clock Club holds seminar on 605. Free. (212) 691-2323, ext. 229. effacing character of the 63- ticular demand as publishers Center holds seminar on 10 steps for effective networking. 6:30 p.m. to 8:30 FEBRUARY 12 year-old actress, the book will compete for attention for their starting your business. 4 p.m. to 5 p.m., p.m., 11 Penn Plaza, fifth floor. Fee: $50. Financial Women’s Association holds not be just about her. wares in an increasingly 79 John St., second floor. Free. (914) 788-5482 or [email protected]. forum on global risk management. Ms. Keaton wants to write crowded media universe. (212) 618-8914 or [email protected]. FEBRUARY 4 5:30 p.m. to 8 p.m., McGraw-Hill, a memoir of herself and her An agent for Patrick FEBRUARY 3 New York Public Library holds 1221 Sixth Ave. Fee: $35 members, $45 mother, Dorothy Hall, who Swayze has been shopping Moses & Singer holds program on the workshop on positioning for business nonmembers. (203) 229-5018. Computer Fraud and Abuse Act. 11:45 success. 5:30 p.m. to 7 p.m., Science, —maia blume succumbed to Alzheimer’s a memoir about the ac- a.m. to 1:30 p.m., 405 Lexington Ave., Industry and Business Library, 188 disease in September after a tor’s fight with pancreat- 12th floor. Free. Preregistration Madison Ave., room 018. Free. 15-year battle. Ms. Hall was ic cancer, and publishers required. (212) 554-7583 or (212) 592-7000. TO LIST YOUR EVENT 86. have recently made [email protected]. FEBRUARY 4 Crain’s lists business meetings online and includes “We are in the process of multimillion-dollar FEBRUARY 3 Score NYC holds seminar on successful them in the print edition on a space-available basis. selling Diane’s memoir of deals for books by Chris Workshop in Business Opportunities Web sites for small businesses. Events in New York City with admission fees of less her life, [which is told] Rock, Sarah Silver- holds seminar on the power of e-mail 10:15 a.m. to 1 p.m., Science, Industry than $300 are considered for the print publication. through the lens of her life man and Tina Fey. marketing. 5:30 p.m. to 8 p.m., Upper and Business Library, 188 Madison Listings can be submitted only through the Crain’s with her mother,”says an as- Blockbuster titles Manhattan Empowerment Zone, 290 Ave., lower level. Fee: $49 in advance, Web site. To submit a calendar listing, go to Lenox Ave., second floor. Free. $59 at the door. (212) 264-4507 or www.crainsnewyork.com and click on “Events.” sociate of Bill Clegg, the have the additional advan- [email protected]. Sponsors have a choice of several free or paid list- book’s agent. The associate, who tage of being able to reach broad More meetings online at FEBRUARY 5 ing options. All business events will be posted declines to be named, adds that audiences through giant retail www.crainsnewyork.com GreenPearl.com holds New York real online within two business days. Ms. Keaton will be writing the outlets as well as through tradi- estate industry party. 7 p.m. to 10 p.m., Crain’s can neither confirm receipt of listings nor say Click on “Events” bloomberg news book herself. tional bookstores. Marquee, 289 10th Ave. Fee: $10. if or when event listings will appear in the print edition.

28 | Crain’s New York Business | February 2, 2009 CNYB 02-02-09 A 29 1/29/2009 8:36 PM Page 1

BUSINESS LIVES CORPORATE LADDER Greg Mendoza A budget balancing act Ritz-Carlton GM tries Over the past 15 years, he has managed Mandarin Oriental and Four PERSONNEL FILE to revive occupancy Season properties from Hawaii to Punta Mita, Mexico. Most recently, COMPANY Ritz-Carlton New York, but stay posh; good he worked in Miami for Millennium Battery Park Partners, which owns the two Ritz- TITLE General manager pedigree, tough times Carlton properties in New York. Mr. Mendoza’s ties to America AGE 52 BY LISA FICKENSCHER start with his father, a doctor who RÉSUMÉ Millennium Partners, VP studied at the University of Penn- operations/development; Four s layoffs piled up last sylvania. During his own college Seasons Hotels & Resorts, GM of November, Greg Men- years, Mr. Mendoza spent time in properties in Miami, Dallas and doza landed a plum job the states as an exchange student, Punta Mita, Mexico in New York. But the and he later married a New Yorker. new general manager They have a 13-year-old son. PASSION Food and wine Aof the Ritz-Carlton hotel in Battery The executive’s experience on the BIRTHPLACE Cali, Colombia Park didn’t have much time to cele- ownership side and in hotel man- brate. He was immediately pressed agement create an unusually potent into crisis mode. combination. He has already taken steps to ad- The neighborhood around the dress the shaky economic climate seven-year-old luxury property was Four Seasons bears fruit since taking over the downtown

in the process of imploding, as in- “it’s an advantage for the entire property. Mr. Mendoza had to lay buck ennis vestment banks foundered and the Ritz-Carlton brand to get someone off employees because the hotel’s executives whom the hotel relied on with Greg’s experience,” says Bill occupancy rates have dropped, he munity.The menu revamp is also an largely completed by April, when to fill its harbor-view rooms and Rhodes, senior vice president of op- says. But his immediate focus is attempt to lure back executives who business is expected to pick up. restaurants began to disappear. erations for Ritz-Carlton Hotel Co. completing the 2009 budget. stopped coming when expense ac- Meanwhile, Mr. Mendoza hopes to “There was no honeymoon,”says “It’s rare that we can get someone “We would ordinarily be done in counts were cut. lure weekenders with value pack- Mr. Mendoza. “Two weeks after I from Four Seasons to Ritz-Carlton. December,” says Mr. Mendoza. But “When Wall Street was doing ages like Dine and Unwind, which started, we were presenting the It gives us some good insights into predicting the hotel’s performance well, we could sell those expensive includes a harbor-view room,break- budget to the owners and to Ritz- how they operate their hotels.” this year, he notes, is more difficult meals,” says Mr. Mendoza. fast, and either lunch or dinner at 2 Carlton [management].” Mr. Mendoza’s mission is to than anyone could have imagined. West, all for $355 a night. The native of Colombia,who first maintain the high standards associ- To reel in more business, the ex- Adding value Mr. Mendoza, a graduate of ho- worked in Manhattan in the 1980s ated with the posh Ritz-Carlton, ecutive is transforming the hotel’s the ritz-carlton is also launch- tel school in Bogotá, says moving at the former Vista International, while also finding ways to make the upscale restaurant, 2 West, into an ing a $10 million renovation of its back here is like coming home. He’s has the chops to steer the five-dia- hotel more appealing to budget- affordable bistro, which he hopes 298 rooms, using funds set aside for excited to watch his son,Trevor, ex- mond hotel through troubled times. constrained travelers. will appeal to the residential com- that purpose. The work will be perience snow for the first time.

EXECUTIVE MOVES

ACCOUNTING & CONSULTING Northern Trust: Keith Ardizzone, 43, was promoted to partner from associate. Adelman Katz & Mond: Lynn Schwartz, appointed senior vice president and lead Junghye June Yeum, 39, was promoted to HOT JOBS 48, was named tax manager. She had relationship manager. He was formerly partner from associate. been tax manager at The Hunter Group. managing director at U.S. Trust. Fitzpatrick Cella Harper & Scinto: Ralph A. Sinopoli, 53, joined as audit Jonathan Berschadsky, 39, was promoted WANTED: PRESIDENT HOSPITALITY & TOURISM manager. He was formerly audit to partner from associate. ORGANIZATION manager and senior taxation accountant New York Water Taxi: Travis Noyes, 33, Michael P.McGraw, 38, was promoted to Brooklyn College at BST Advisory Network. was promoted to chief operating officer partner from associate. JOB DESCRIPTION Oversee one of the City University of New York’s Friedman: Scott B. Ehrenpreis, 56, was from vice president of sales and Greenberg Traurig: Jeffrey Fried, 44, fastest-growing colleges named principal. He previously was tax marketing. rejoined as shareholder. He had been equity principal at J.H. Cohn. Setai Group and Zamir Equities: Ronan senior managing director and business MOST IMPORTANT TASKS Guide the college through the current Henaff, 39, joined as general manager. leader of the national public finance economic challenges, while helping it expand and meet the needs ADVERTISING & COMMUNICATIONS He had been general manager at practice at Financial Guaranty of students OgilvyAction: Sheila Hartnett, 56, was Cipriani Club, 55 Wall Street. Insurance Co. promoted to chief executive of Kilpatrick Stockton: Frederick L. Whitmer, CREDENTIALS NEEDED Proven leadership experience in higher OgilvyAction North America from LAW 61, joined as partner. He had been co- education Baker Hostetler: managing director of Experiential. George A. Stamboulidis, chair of the intellectual property SALARY Previous president earned $234,080, according to public Porter Novelli: Anthony Viceroy, 40, was 47, was promoted to managing partner litigation practice group at Thelen Reid appointed president of global business from partner. He continues as co-leader Brown Raysman & Steiner. records operations and chief financial officer. He of the white-collar defense and Morrison Cohen: Richard B. Friedman, RECRUITER Special committee was formerly senior vice president of corporate investigations practice. 51, joined as partner. He was previously financial management and client Carter Ledyard & Milburn: Peter Flägel, a partner at Dreier. DOWNSIDE The recession threatens growth of the college partnership at Omnicom’s Diversified 40, was promoted to counsel from Moses & Singer: Devika Kewalramani, A new president will be appointed by mid-June, according to CUNY Agency Services. associate. 42, was promoted to partner from of Chadbourne & Parke: John A. Squires, 46, counsel. Chancellor Matthew Goldstein. Last month, President Christoph ARCHITECTURE & DESIGN joined as partner and co-chair of the IP Scott E. Silberfein, 36, was promoted to Kimmich announced that he will step down from his post this Ammann & Whitney: Henry H. Abernathy practice. He was formerly chief of counsel from associate. summer after leading Brooklyn College for nine years. Under his Jr., 64, was named vice president and intellectual property counsel at Julie Stark, 43, was promoted to of leadership, the college has hired 273 faculty members, more than chief architect. He was formerly a Goldman Sachs & Co. counsel from associate. half of its current full-time faculty. Enrollment increased by 11% principal at Perkins Eastman. Crowell & Moring: Daniel D. Edelman, Skadden Arps Slate Meagher & Flom: during his tenure, reaching 16,690 in fall 2008. Mr. Kimmich also 43, was named partner. He was formerly David W. Sussman, 54, joined as of helped the school build a new library, as well as renovate lecture FINANCE & INSURANCE a shareholder at Heller Ehrman. counsel. He was formerly executive vice Geller Family Office Services: Christopher Dechert: Michael J. Sage, 45, was named president and general counsel at MTV halls, labs and the student center. —AMANDA FUNG C. Vescio, 36, joined as relationship partner. He was formerly a partner at Networks. manager. He was formerly director of O’Melveny & Myers. tax services at RSM McGladrey Inc./ Duane Morris: Vanessa Hew, 34, was MEDIA McGladrey & Pullen. Odyssey Networks: Nick Stuart, 49, was New York Life Investments: John Siciliano, named president and chief executive. He at Microsoft’s Rapt. SERVICES 54, was named senior managing director EXECUTIVE PROMOTIONS had been chief executive at CTVC. Travelport Ltd.: Eric J. Bock, 43, assumed and head of investment boutiques, The fastest way to get an announcement into Time Inc. Digital: Jason Kelly, 34, was REAL ESTATE the role of chief administrative officer a newly created position. He was Crain’s is to submit details online. Fill out the form named vice president of strategy and Corcoran Group: Carolyn Levitan, 50, was and continues as executive vice president formerly managing director at Grail at www.crainsnewyork.com/submit. The revenue management. He previously named senior vice president. She had and general counsel. Partners. Executive Moves column is also available online. was manager of advisory services been senior vice president at Bellmarc. —maia blume

February 2, 2009 | Crain’s New York Business | 29 CNYB 02-02-09 A 30 1/30/2009 6:04 PM Page 1

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

States, he will continue to fulfill ECONOMIC SPOTLIGHT the duties of deputy chairman of KPMG’s U.S. business. John Updike, 1932-2009 famed author John Updike died at age 76 after battling cancer. The Pulitzer Prize- and National Book Award-winning novelist also penned numerous short stories, essays and poems. He offered a narrative of life in the city with regular contributions to The New Yorker and The New York Review of Books. Swinging at Swig bankrupt Lehman Brothers Layoffs spread across economy Holdings Inc. started foreclosure proceedings against developer EMPLOYERS across all areas of the economy slashed jobs as Kent Swig on his property at 45 the recession deepened. TIME WARNER INC.’S AOL business Broad St., where he had planned will shed 700 jobs, or 10% of that unit’s workforce. to construct a high-end hotel and residential tower. ...The court- Specialty glassmaker CORNING INC. is eliminating 3,500, appointed examiner of the failed including 640 in the Corning, N.Y., area. Rochester-based investment bank also started an EASTMAN KODAK CO. is cutting as many as 4,500 jobs, or investigation into the company’s Economy Watch executives and their actions. 18% of its payroll. The nonprofit 92ND STREET Y also pared Falling energy prices drove the November decline in area inflation, the steep- est one-month drop in history. NYC job losses were the worst since Sept. 11. 10% of its staff as donations dwindled. Dudley steps up OCTOBER ’08 NOVEMBER ’08 COMPARISON bloomberg news the federal reserve Bank of NY area inflation change -0.7% -1.6% +2.2%1 New York tapped an insider, NYC unemployment rate 5.7% 6.3% 7.2%2 Top executive Liquor stores boo William Dudley, as its new NYC employment change -3,300 -19,800 -11,7003 exits Africa Israel booze in bodegas president, filling the vacancy left by Timothy Geithner, who was 1-NY area inflation rate for the latest 12-month period. 2-U.S. unemployment rate for the latest the u.s. head of Africa Israel, a nearly 2,700 New York liquor recently sworn in as President month. 3-NYC employment change year to date. real estate conglomerate that owns stores formed a coalition called Barack Obama’s Treasury the famed Apthorp apartment The Last Store on Main Street to secretary. Mr. Dudley previously NYC Hotel Stats Broadway Stats building and half of the former try to eradicate a line item in Gov. served as head of the New York New York Times building, has left David Paterson’s proposed budget Fed’s markets group. Occupancy and room rate slipped in Attendance and gross continued the company. Rotem Rosen that would allow grocers and November, data from PKF Consult- their decline from their holiday vacated his position as chief bodegas to sell wine.They claim ing show. For the year to date, aver- highs in the two weeks ended 1/25, executive just weeks after settling a the change would wreck their Former AIG exec age 2008 occupancy was just below The Broadway League says. Houses long-running dispute over the businesses and encourage gets 4-year slap 2007 levels, while the average room were filled to just 77.3% of capacity conversion and management of underage drinking. rate was somewhat higher. in the week ended 1/25. the Apthorp condo. a former American International Citi shuffles Group Inc. executive was sen- Rocket salvaged tenced to four years in prison in a preparing to split into two fraud case that cost shareholders an the family that operated the divisions, Citigroup Inc. named estimated $500 million. Christian Astroland amusement park at John Havens, a former Morgan Milton, who is expected to appeal, Coney Island for 47 years donated Stanley executive, head of its was convicted of conspiracy, secur- healthy global institutional bank. ities fraud, mail fraud and making Mike Corbat, currently head of false statements to the Securities Citi’s global wealth management and Exchange Commission. unit, will run the sickly Citi Holdings division.The company canceled a $50 million jet order. Pfizer bets $68B on Wyeth’s cures the Astroland Rocket to the city. Stimulus package drugmaker pfizer inc. agreed Capital IQ’s Weekly Deals Report The rocket ship ride, which clears first hurdle to pay $68 billion, or $50.19 a stopped operating in the 1970s, share, for rival Wyeth. The move TRANSACTION SIZE joins the Cyclone, the Wonder the house passed an $819 billion will consolidate two of the COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE Wheel and the Parachute Jump as stimulus package that included tax industry’s largest players and help The New York Times Co. $250.0 Banco Inbursa, Institución de Banca GCI preserved symbols of the famous cuts and lavish spending on energy, Pfizer diversify its portfolio. Its Manhattan Múltiple, Grupo Financiero Inbursa, boardwalk attraction. education, health care and social biggest moneymaker, Lipitor, will Inmobiliaria Carso programs. If enacted, the bill would face generic competition in less Varonis Systems Inc. $15.0 Accel Partners, Evergreen Venture GCI Domino falls raise the federal debt to a 50-year than three years. As part of the Manhattan Partners, Pitango Venture Capital, EMC Corp. high.The Senate is slated to vote deal, Pfizer will slash 10% of its Yodle Inc. $10.0 Bessemer Venture Partners, Draper GCI condé nast shuttered Domino on it this week. workforce. Manhattan Fisher Jurvetson, Jafco Ventures magazine, a publication that —from staff reports and Return Path Inc. $6.0 Sutter Hill Ventures, Western GCI focused on home decor. Scheduled CEO crowned bloomberg news reports Manhattan Technology Investment, Mobius Venture to cease publication with its Capital Inc., Union Square Ventures March issue, Domino saw its ad accounting firm KPMG Diligent Board Member $3.0 Spring Street Partners, GCI pages fall 4%, to 695, in 2008.The International promoted Services Inc. Carroll Capital Holdings Manhattan magazine’s editor, Deborah John Veihmeyer to chief Needleman, will leave the executive. In addition to Selected deals announced between Jan. 11 and Jan. 24 for companies headquartered in metro New

York. GCI: Growth capital investment represents new money invested in a company for a minori- company. It is the fifth high- overseeing all of the bloomberg news ty stake. profile shelter magazine to close company’s day-to-day BIG-DEAL MAKERS: Pfizer’s Jeffrey Kindler (left) and

bekka lindström bekka recently. operations in the United Wyeth’s Bernard Poussot.

30 | Crain’s New York Business | February 2, 2009 CNYB 02-02-09 A 31 1/29/2009 8:49 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape NJ spot passes test of time ta pecorino cheese is a fine starter. At 38, Roberto’s II Braised lentils prepared with grilled keeps serving large hot sausage and warm goat cheese is another. portions of Italian I often split an appetizer or salad, then order filet of sole—broiled,alla food; price is right française or oreganata ($19.95). It’s not one but two filets—a pound of any new jersey delightful fish. It makes for terrific mayors and other next-day lunches. public figures may Southern Italian influences, no- be seen toting bags tably Calabrese and Sicilian, res- of food from Ro- onate in a plethora of seafood items Mberto’s II in Edgewater. There is (15), veal (eight), chicken (eight) nothing untoward about that. Al- and pork dishes (four).There are six most everyone who dines at Rober- steak styles. I enjoy combinations to’s will take home a healthy helping such as chicken balsamic or chicken of the overwhelming portions of de- Calabrese, with hot sausage slices, lightful Italian food from the fami- olives and peppers in the package. ly-run restaurant. Pounded pork chop peasant- Marking its 38th anniversary, the style resembles a serious schnitzel. cozy retro eatery is as warm and wel- It’s a pounded chop, lightly breaded coming as could be. and sautéed in olive Some things never oil and topped with

change: Sinatra is al- a salad of diced fresh buck ennis ways singing, and the tomatoes and basil. ALL IN THE FAMILY: Chick D’Angelo (right), his son, Bob, and his wife, Vickie, at Roberto’s II. friendly waitstaff re- With mashed pota- mains impeccably at- toes and escarole on VISIT OUR WEBSITE tired in tuxedos, even the side, it repre- the list are $30 or under and In these difficult times, a neigh- if most patrons top sents a challenge to markups are, as you might expect, borhood gem with a great history of CRAINSNEWYORK.COM out at a sport coat. big eaters. quite reasonable overall. Cocktails bang for the buck is a treasure in- Robert F. The fact that are large and well-made. deed. “Chick” D’Angelo is Roberto’s entrées the exception. He’s come complete with the guy in the gray vegetables further suit who spent half enhances the restau- his life in chef ’s ROBERTO’S II rant’s reputation for whites before ceding 936 River Road value and quality. the kitchen to son (at Dempsey Street) A dozen pastas Robert J. “Bob” Edgewater, N.J. are also plate-bend- Helping D’Angelo. Chick (201) 224-2524 ing classics such as now leads the hospi- www.robertos2.com marinara, primav- tality on weekends, ##½ era, carbonara, put- clients along with his tanesca, Alfredo, smartly dressed CUISINE Italian con vongole, and navigate the wife, Vickie. WINES 110 choices, 18 by the Roberto’s (cream, Chef Bob recalls glass prosciutto and starting in the DRESS No code peas).Any lack of fi- road to success. kitchen as a dish- NOISE LEVEL Moderate nesse is more than washer and occa- compensated by sional salad chef at PRICE RANGE $18.95-$29.95 sheer size. They’re Business direction you can actually use. age 11 for the WINE MARKUP 60%-200% so generous I was princely sum of $5 a CREDIT CARDS All major once asked if I was week.“I got a raise of RESERVATIONS Suggested “really, really sure” I a dollar a year,”he re- wanted the car- HOURS Lunch, Tues.-Fri., noon- ports. 2:30 p.m.; Dinner, Tues.-Thurs., bonara. And this The D’Angelos’ 5-10 p.m., Fri.-Sat., 5-11 p.m., was an inquiry from deserved following Sun., 4-9 p.m. Bob D’Angelo. is based on comfort ####= Outstanding A recent addi- food writ large and ###= Excellent tion is a plate of po- reasonable. Diversi- ##= Very good tato gnocchi sauced ty and innovation #= Good with brown butter, count, too. In addi- fresh sage and tion to an 80-item Parmigiano-Reggi- menu, the second generation chef ano. Again, enough for two. adds almost 30 specials. When dessert time comes,a cap- Appetizers and salads ($9.95 to tain does a show-and-tell with a $12.95) are colorful, fresh, flavorful platter of handsome, elaborate and ample for sharing. They might sweets from topflight outside bak- be prosciutto-wrapped asparagus eries. By then, few patrons are able spears baked in parmigiano cheese, to eat anything. or marinated salt cod packaged with There are no vintages listed for olives and peppers in radicchio. A the 110 wines carried by the restau- New York, NY Melville, NY salad of baby arugula, grilled arti- rant, but at this writing, the list is in 212.981.3000 631.414.4000 choke hearts,butter beans and ricot- transition. More than 50 bottles on

February 2, 2009 | Crain’s New York Business | 31 s s s s