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Waste carter’s key to success: No carting P. 8 | The List: Top women-owned businesses P. 13 | Rising wages lift all jobs P. 14
NEW YORK BUSINESS® MARCH 5 - 11, 2018 | PRICE $3.00
STREET VOL. XXXIV, NO. 10 WWW.CRAINSNEWYORK.COM MEAT GOES CORPORATE Big chains make entrée into city sidewalk vending PAGE 16 NEWSPAPER
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ON THE COVER
PHOTO: BUCK ENNIS
FROM THE NEWSROOM | ERIK ENGQUIST | ASSISTANT MANAGING EDITOR Congestion suggestions
“AS A NEW YORK resident living near the Koch Queensboro Bridge,” reader Win Shef- eld recently emailed me, “I can hardly wait for congestion pricing.” She eld raised sev- eral issues, including relief for Long Island residents, adding parking near transit hubs and potentially restricting delivery times. He then asked, “What kind of parking facilities can be provided near mass transit to make life easier for those who normally would drive? On the delivery side, could we consider restricting hours?” P. On the rst question, it is unlikely that park-and-ride facilities 6 will be added to the ones that already exist. e land around train stations is far too valuable to be used for parking. Rather, it is being IN THIS ISSUE eyed—as it should be—for transit-oriented development, namely 16 FAST-FOOD CARTS apartment buildings with shops and restaurants to which residents UP FRONT Connecting small operators with big brands, a tech rm of those buildings could walk. 4 EDITORIAL brings franchises to city Existing park-and-ride lots in the northern and eastern suburbs The mayor needs more allies sidewalks gure to eventually be converted into housing and commercial dis- in ght for affordable housing 20 GOTHAM GIGS tricts as well, because rides to the train station in the future will be 5 IN CASE YOU MISSED IT This star chef is There’s been a drop in the in shared, automated vehicles. Driverless cars won’t need parking cooking up something number of idle young adults because they will spend most of their time picking up and dropping big at Northwell Health o customers. Even now that role is increasingly being handled by 6 REAL ESTATE Uber, Ly and the like. Property owners turn to tech for ef ciency’s sake Restricting deliveries has been pondered for years, and the de Blasio administration is exploring ways to do it (see Fine Print, page 7 HEALTH CARE Brooklyn hospital restructuring 4). e drawback of nighttime deliveries is that businesses would could bene t SUNY Downstate have to add sta to receive the shipments. But that cost would be 8 SPOTLIGHT o set by the savings from more e cient deliveries, as trucks would A waste-management app reach them faster and avoid parking tickets and congestion fees, as- looks to recharge carting suming the state ever gets around to pricing Manhattan’s precious 9 TRANSPORTATION street space. at, Mr. She eld, would be a win all around. City Council bill could kneecap Uber and Lyft; another taxi lender is closed 10 VIEWPOINTS Three tech amigos need P. ARTS & CULTURE BREAKFAST company; N.Y. and N.J. should 20 MARCH 15 collaborate to win HQ2; cut 21 SNAPS the cost to save Gateway Photos from the city’s biggest Finding funds from fundraisers and charity events nontraditional sources 12 INSTANT EXPERT How changes to wetlands and 22 FOR THE RECORD Join Andrew Ackerman of the Children’s ood maps might affect N.Y. Our tally of the week’s buys, Museum of Manhattan and other busts and breakthroughs industry leaders to discuss strategies 13 THE LIST for building supportive partnerships The metro area’s largest 23 PHOTO FINISH with noncultural agencies, such as women-owned companies Preservation group aims the Sanitation, Transportation and to stymie JPMorgan Chase’s Correction departments. FEATURES new Midtown of ce building CON EDISON CONFERENCE CENTER 14 RISING WAGES CORRECTION New Yorkers are getting RXR Realty is based in Uniondale, N.Y. The loca- 8:30 to 10:30 a.m. paid more—especially the tion was misstated in “Developers cashing in [email protected] lowest-paid near Fort Greene Park,” published Feb. 26.
Vol. XXXIV, No. 10, March 5, 2018—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of Jan. 1, June 25, July 9, July 23, Aug. 6, Aug. 20 and Dec. 24, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2018 by Crain Communications Inc. All rights reserved.
MARCH 5, 2018 | CRAIN’S NEW YORK BUSINESS | 3
P003_CN_20180305.indd 3 3/2/18 8:10 PM MARCH 5, 2018
AGENDAThe mayor has enough enemies. Who needs friends like these?
his just in: Being mayor of New York City is tough. It is even tougher for Bill de Blasio, whose missteps, stubborn- ness and occasional hypocrisy inspire even more criticism than the ample amount every mayor gets. e governor and Tthe Republicans and Democrats who control the state Senate cannot stomach him, and City Council Speaker Corey Johnson ascended to his post in January in part by vowing to stand up to de Blasio, who favored other candidates. Term limits will further erode the mayor’s political BUILDING CREDIBILITY: capital as he enters the lame-duck stage of his tenure. Inwood leaders Given these factors, the mayor at least needs support for his e orts must not demand housing subsidies from the people they would bene t, especially low-income New York- that other areas ers seeking a ordable housing. Yet in most cases they have emerged as can’t do without. opponents to the rezonings he is trying to push through, one neighbor- hood at a time. Take Inwood, where the mayor would let developers haust precious subsidies where they weren’t needed. Councilman Ydan- build more apartments than currently allowed if enough of the units is Rodriguez last year shot down an Inwood project that t the may- have discounted rents. Fearing gentri cation, locals are pressuring the or’s model, daring the developer to build a smaller, 100% market-rate mayor to use taxpayer subsidies instead. project that requires no council approval. A rm is doing that in Cobble Setting aside the fact that adding supply Hill because Councilman Brad Lander eases rather than elevates housing prices, People who would bene t from demanded too much in exchange for the city’s pot of public subsidy funds is lim- rezoning the site of a former hospital. ited. Dollars spent in Inwood could not be de Blasio’s housing policy have Desperately needed housing units used in areas where the housing market is been its most vocal opponents are also going unbuilt because Albany not strong enough to subsidize rents, such imposes a density limit on New York as the South Bronx and the North Shore of City and nowhere else. Some council Staten Island, where rezonings are underway. members support a bill to li that cap but undermine their credibility De Blasio explained that during a radio interview last month, but by killing projects in their districts that exceed typical heights. De Bla- he needs more backup from credible voices in neighborhoods. Coun- sio needs them and other civic leaders to take an enlightened view to cilwoman Laurie Cumbo in Crown Heights seemed to be one, but then have any chance in Albany. e folks up there do not seem likely to take she folded like a cheap umbrella in a storm, forcing the mayor to ex- his word for it. — THE EDITORS
FINE PRINT Deliveries to congested neighborhoods will be limited beginning March 19 in Brooklyn and Queens and April 2 in Manhattan. One side of the street will be off-limits—and both sides during rush hour. But the food, hospitality and trucking industries say the new rules will reduce safety and the compressed schedule will increase congestion as trucks double-park or circle until their time-limited window opens.
BY GERALD SCHIFMAN STATS
NEW YORK’S craft brewery scene continues to be frothy—particularly in Brooklyn and SOMETHING BREWING Queens—fueled by changing tastes and
25 WORDS OR LESS state incentives enacted in 2013. AND T H
Number of breweries in the NUMBER OF BREWERIES IN EACH BOROUGH city (in 2011 there were three, 42 all in Brooklyn) Bronx Brooklyn Manhattan Queens Staten Island E CITY It’s like taking 20 “ Minimum portion of New York– 20 % grown hops and other ingredients the jacket off 20 needed for brewers to legally serve beer by the glass, open 15 branch of ces and sell beer at tasting 11 rooms, restaurants and shops a poor person” 10 —Ai Weiwei, artist, decrying the Metropolitan Museum of Art’s new Craft brewers’ share 5 $25 entrance fee for nonresidents, % of all U.S. beer volume 12.3 in 2016, nearly double 0 unveiled last week that of 2012 2011 2017
SOURCES: Governor’s of ce, ISTOCK ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY. Brewers Association
4 | CRAIN’S NEW YORK BUSINESS | MARCH 5, 2018
P004_CN_20180305.indd 4 3/2/18 8:16 PM IN CASE YOU MISSED IT CRAINSNEW YORK BUSINESS president K.C. Crain senior executive vice president Chris Crain group publisher Mary Kramer
EDITORIAL managing editor Brendan O’Connor A marked drop in idle youth, A NEW TALE? assistant managing editors Erik Engquist, Things have gotten Jeanhee Kim, Robin D. Schatz but housing costs are a factor better for youth in copy desk chief Telisha Bryan gentrifying areas but art director Carolyn McClain ILL DE BLASIO’S mayoralty is based on the idea of bet- worse in lower-cost photographer Buck Ennis neighborhoods. senior reporters Joe Anuta, Aaron Elstein, ter sharing New York’s prosperity, doing away with what Matthew Flamm, Daniel Geiger he calls the “tale of two cities.” A new report by a lead- reporters Will Bredderman, B ing research nonpro t shows progress is being made, especially Jonathan LaMantia, Caroline Lewis data reporter Gerald Schifman when it comes to improving prospects for poor young adults. web producer Chris Kobiella e Community Service Society of New York found that 17% columnist Greg David of people ages 18 to 24 were neither employed nor in school in contributors Tom Acitelli, Theresa Agovino, Yoona Ha, Miriam Kreinin Souccar, 2015, down from 22% ve years earlier. at de ed the national Cara S. Trager trend. e author of the report, Lazar Treschan, said one factor to contact the newsroom: www.crainsnewyork.com/staff was de Blasio’s pre-K expansion in his second year, 2015, which 212.210.0100 gave young parents more time to nd and keep a job. “ e evi- 685 Third Ave., New York, NY 10017-4024 dence shows that the program is putting people to work and is ADVERTISING especially helping young Hispanic women,” Treschan said. www.crainsnewyork.com/advertise advertising director Irene Bar-Am, Another cause might have been that New York’s population 212.210.0133, [email protected] of 18- to 24-year-olds fell by 75,000 between 2010 and 2015, a 9% drop, as the city’s growing prosperity contributed senior account managers to a lack of reasonably priced housing. “Fewer young people in general are moving here, because the city is unaf- Lauren Black, Zita Doktor, Rob Pierce, Stuart Smilowitz fordable,” Treschan said. On the bright side, the report noted rising high school graduation rates. senior marketing coordinator Although a higher percentage of those who remain here are working or in school, the newly employed young Charles Fontanilla, 212.210.0145 [email protected] adults work mostly in minimum-wage jobs that don’t oer bene ts or much in the way of advancement. And while sales coordinator Devin Arroyo, the reduction in out-of-work, out-of-school youth was steep in gentrifying neighborhoods such as Bushwick and 212.210.0701, [email protected] Sunset Park, their ranks rose in lower-cost areas such as Flatbush, the Rockaways and the North Shore of Staten CUSTOM CONTENT director of custom content Island. “In those neighborhoods, the tale of two cities has gotten worse,” Treschan said. Patty Oppenheimer, 212.210.0711, To reach the 136,000 youths now disconnected from school or the workforce, the report recommends the city [email protected] invest more in things such as the Young Adult Internship Program. at initiative, launched by the Bloomberg custom project manager Danielle Brody, [email protected] administration, oers 14 weeks of training and work and nine months of follow-up services. — AARON ELSTEIN EVENTS www.crainsnewyork.com/events director of conferences & events Courtney Williams, 212.210.0257, Thinking outside the box DATA POINT Floridian gets cold feet Real estate investor Charles Urstadt is Not 24 hours aer Mayor Bill de Bla- [email protected] OF LAGUARDIA AIRPORT’S 93,326 manager of conferences & events proposing that the city and state sell a sio said Alberto Carvalho would be Adrienne Yee, [email protected] 50-acre underwater site near Battery SCHEDULED FLIGHTS LAST YEAR, the city’s new schools chancellor, the events coordinator Ashlee Schuppius, Park City to Amazon for its HQ2. His 3.2% WERE CANCELED, WORST IN Miami-Dade schools chief decided to [email protected] idea is to build on land ll. stay in South Florida. e search for AUDIENCE DEVELOPMENT THE U.S., INSUREMYTRIP FOUND. Carmen Fariña’s replacement continues. group director, audience development Out of position NEWARK AND JFK LANDED FOURTH Jennifer Mosley, [email protected] Seattle Seahawks quarterback Russell What not to wear AND FIFTH FROM THE BOTTOM. REPRINTS Wilson—who played two seasons of Eliza Vincz, who was visiting the Met- reprint account executive Lauren Melesio, minor league baseball before commit- ropolitan Museum of Art to speak to 212.210.0707 ting to football—spent a week working a group during a tour on fashion in PRODUCTION out with the Yankees. e 2014 Super NoHo Hospitality Group partners plan art, was booted from the institution. A production and pre-press director Bowl champ said he won’t be switch- to open an 11,000-square-foot eatery guard accused her of stealing the period Simone Pryce ing sports, however. on the rst oor and mezzanine. clothing she was wearing from the Met’s media services manager Nicole Spell Costume Institute. — CHRIS KOBIELLA SUBSCRIPTION CUSTOMER SERVICE Vested interest Hizzzoner www.crainsnewyork.com/subscribe e Transportation Security Admin- Email messages dating back to the [email protected] istration tested suicide vest–detection start of the de Blasio administration’s 877.824.9379 (in the U.S. and Canada). machines at Penn Station. e screen- rst term reveal that aides—aware of $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print ing equipment, which the TSA has been the mayor’s penchant for napping and subscriptions with digital access. working on since 2004, can identify attempting to curtail his tardiness at explosives on people from a distance. public functions—discussed procuring Entire contents ©copyright 2018 Crain Communications Inc. All rights a conspicuous alarm clock for his o ce. reserved. ©CityBusiness is a registered Closed for forti cation trademark of MCP Inc., used under license Belvedere Castle is closed until the mid- Rising tide agreement. dle of next year for a $6 million resto- NYC Ferry plans to begin service in CRAIN COMMUNICATIONS INC ration. e Central Park Conservancy the summer from the Lower East Side chairman Keith E. Crain is working on the structure’s masonry, to Wall Street and Midtown. A dock is vice chairman Mary Kay Crain mechanical systems and water and under construction at Corlears Hook. president K.C. Crain drainage issues. e castle last was e city projects 1 million riders will Sound and vision senior executive vice president Chris Crain restored in 1983. use the route annually. e Brooklyn Museum’s David secretary Lexie Crain Armstrong Bowie Is exhibition began a run editor-in-chief emeritus Rance Crain Another toque Top of the hill that’s due to end July 15. Admis- chief nancial of cer Robert Recchia Top chef Andrew Carmellini joins Online resource Healthgrades named sion is $20 on weekdays and $25 founder G.D. Crain Jr. [1885-1973] Jean-Georges Vongerichten and David Lenox Hill Hospital America’s best for on weekends, while $2,500 buys the chairman Mrs. G.D. Crain Jr. [1911-1996] Chang in an all-star lineup of restau- the second straight year. Institutions are Aladdin Sane ticket package, which rants at the South Street Seaport’s judged on clinical outcomes of common includes VIP access and other perks.
Pier 17 complex. Carmellini and his inpatient conditions and procedures. FLICKR, ISTOCK
MARCH 5, 2018 | CRAIN’S NEW YORK BUSINESS | 5
P005_CN_20180305.indd 5 3/2/18 7:26 PM REAL ESTATE
Property owners turn to tech for efficiency’s sake New software helps industry manage sprawling portfolios BY GREG DAVID
randon Weber graduated from industry consolidation, which from Carnegie Mellon Uni- creates larger companies in need of versity with a degree in com- better technology to run their opera- puter science but fell into real tions. Also, rms such as Rudin Man- Bestate when he moved to Seattle. One agement Co. and the Durst Organiza- day he asked a client at JPMorgan how tion have become major investors as a the rm used the leasing reports he new generation of family-owned dy- FEATHERING sent. e answer: ey were manually nasties pushes for change. e Rudins HER NESTIO: rolled into a master spreadsheet. have invested in 10 proptech compa- Hundreds of Astonished, Weber began building nies and investment funds, all but two landlords use a so ware platform that could track a of which are in New York. Maio’s rm. rm’s leasing activity. And he moved “It is early on in the convergence of to New York. real estate and tech,’” said Michael Ru- “If we were going to build the tech din. “But it is an exciting time as more expects to save its customers millions a platform for residential landlords company we thought we could, we real estate companies get involved and of dollars by allowing them to pressure to track leasing activity across their needed to be in one of the major cen- startups get founded and innovate.” vendors to lower prices. properties, streamlining their work- ters of real estate,” said Weber. “We ey are turning to companies “Aggregating data across properties ow and—like VTS—giving them the knew New York was the center of all including Honest Buildings, which should improve transparency,” said information to maximize their occu- things real estate in the U.S. and a Riggs Kubiak founded in 2012, when Kubiak, a New Yorker by way of Ida- pancy and rents. Her company, Nestio, jumping-o point for Europe.” he realized that developers could not ho. Without it, he said, “owners fund has signed up hundreds of landlords, Today his rm, VTS, is the indus- see what was happening at all their all the work and take all the risk but including the Rudins and Dursts. try leader in a new category of leasing planned or active projects. In fact, the are at a disadvantage negotiating with For now, the proptech companies and asset management, approaching bigger the company, the more it didn’t their vendors.” are small. VTS is an exception, hav- 200 employees, 1,000 customers and know, as it was tracking everything on ing raised $100 million in venture 7 billion square feet on the platform. an Excel spreadsheet. Rudins, Dursts sign up capital, but Honest Buildings just hit It is part of the fast-growing property Honest Buildings built a cloud- Caren Maio, a graduate of the accel- $36 million and Nestio, $13 million. technology sector, or proptech, which based so ware platform to replace erator Techstars, originally wanted to All are losing money. But if they is a major reason for the boom in tech those spreadsheets. is year it plans help tenants nd new apartments but are right about how technology can companies in the city. to facilitate $10 billion in transactions. decided it wasn’t a business she could change real estate, as it has so many Proptech startups are bene ting It sells subscriptions to its service and crack. So in 2013 she began building businesses, they will succeed. ■
New beginning Steel tariff unlikely to hurt for old SoHo garage NYC construction Of ce and retail conversion at 165 Mercer St. BY DANIEL GEIGER Most city towers built with U.S. steel BY JOE ANUTA
WHEN THE OWNERS of a well-known desirable SoHo has become to oce THE NEW YORK CITY construction in- tion would give domestic producers parking garage in SoHo began to ex- tenants. “[Tenants] don’t need to go dustry would likely escape the worst ef- more leeway to set prices. plore the cast-iron building’s redevel- to Midtown anymore for their brand fects of a tari on foreign steel that was “Will this allow domestic steel mills opment, they were met with a familiar identity,” Walsdorf said. “ ey can stay proposed by President Donald Trump to raise prices a little bit? Probably,” proposal: Convert it into high-priced close to home and be near the restau- last week, according to experts inter- said Paul Brancato, general manager residential condos. rants they like.” viewed by Crain’s. of Ideal Steel in the Bronx. “But I don’t But the Batt family, which has Cushman & Wake eld has been Trump oated the idea of slap- think this is going to be a great boon to owned the garage at 165 Mercer St. hired to market the oces, while rival ping a 25% tax on steel and 10% on the industry where we’ll see steel mill since the late 1960s, didn’t want to sell. brokerage rm CBRE has been tapped aluminum produced abroad during a er steel mill opening.” Instead, they reached a deal last year to to lease the building’s roughly 7,000 a meeting with industry executives. Any changes to the supply chain partner with architecture and develop- feet of ground-oor and basement- e move, if it is actually put in prac- worry general contractors, especially ment rm Flank to redevelop the near- level retail. tice, would shield domestic producers for projects in motion or those order- ly 150-year-old building into oce and Even through retail rents have against competition from abroad but ing large or unusual pieces that o en retail space. dropped sharply across the city, asking also raise prices for other sectors of the come from abroad. “Everyone had proposed residential, rents for the ground oor are expected U.S. economy that rely on the metals. “It will drive up the costs of steel but we saw problems with that, includ- to be $600 per square foot. “Obviously In the ve boroughs, however, com- on projects that already have agreed- ing the fact that we think the high-end retail in that neighborhood is in a dif- mercial oce developers using struc- upon budgets,” said Lou Coletti, head condo market is overbuilt right now,” ferent condition than it was a few years tural steel for the skeletons of their of the Building Trades Employers’ As- said Mick Walsdorf, a co-founder and ago,” Walsdorf said. “But even if rents towers would likely not see a signi - sociation. “And it will cause scheduling managing partner at Flank. are not what some people speculated, cant change. delays in deliveries and drive up con- e company, which served as both retail is still strong in SoHo.” “In the New York market, almost all struction costs.” the architect and the developer for the Built in 1870, the building has steel comes from the U.S.,” said Brian e city is already home to the pric- project, began work in the summer and served a variety of uses, including as Ra , director of government relations iest construction in the world, and the is now nearing completion. e process manufacturing space, a horse stable for the American Institute of Steel cost of steel alone rose about 5% be- included a painstaking restoration of and a warehouse for bootlegged booze Construction, a structural steel trade tween 2015 and 2017, according to a the historic facade and a full rebuilding during Prohibition. It was convert- group that has said Trump’s proposed report from Turner & Townsend. of the interior. ed into a parking garage in the 1920s tari does not go far enough in curbing As for the proposed 10% tari on Oce asking rents range from $82 and became a recognized part of the imports. aluminum imports, the Beer Institute per square foot on the lower oors to streetscape, appearing in a photo on General contractors and developers said the move would cost the industry $105 per square foot for the top two the back of a Joni Mitchell album in the could still feel some ripple e ects, how- about $340 million a year, or roughly
BUCK ENNIS levels, pricey rates that reect how late 1960s. ■ ever, because sapping foreign competi- 1 cent for every can sold. ■
6 | CRAIN’S NEW YORK BUSINESS | MARCH 5, 2018
P006_CN_20180305.indd 6 3/2/18 7:14 PM HEALTH CARE
Brooklyn hospital restructuring RILEY, president, could benefit SUNY Downstate SUNY Downstate The new One Brooklyn Health System might become a valuable partner BY JONATHAN LAMANTIA
lmost a year ago Dr. new group of three Brooklyn Downstate can comple- hospitals in its planning. at contract was overseen Wayne Riley took hospitals that came together as ment One Brooklyn’s prac- “ e needs are so great,” by Dr. John Williams, then the helm at SUNY part of Cuomo’s Vital Brook- tices with its own specialists, Brown said. “ e era of com- Downstate president. Downstate Medical lyn plan. Interfaith, Kings- Riley said. “As the primary peting and trying to protect Riley said the new con- ACenter. As he implements brook Jewish and Brookdale care network gets built out your efdom is over.” sulting contract will be much his ambitious transformation University Hospital medical through One Brooklyn, there She said some of those state smaller in scope than the orig- strategy, his success might centers jointly applied for the will be a need to refer for more funds will support new multi- inal with Pitts. He added that hinge on how much the teach- money and are examining how advanced care,” he said. specialty clinics sta ed by Downstate will not repeat the ing hospital bene ts from Gov. they can restructure to reduce Downstate physicians. “poor oversight” of the previ- Andrew Cuomo’s $700 mil- overlapping services. Putting it all together To develop its strategy, ous contracts. lion plan to remake Brook- e governor has sought Planning for the future of SUNY Downstate last week Although he said he hopes lyn’s struggling community a long-term solution for Brooklyn hospitals without solicited bids from consult- Downstate’s plan will boost hospitals. Brooklyn’s hospitals, which nding a role for public facil- ing rms. revenue, potential federal cuts Riley said he plans to rede- lose hundreds of millions of ities would be shortsighted, History suggests caution to graduate medical education sign clinical services at SUNY dollars annually and rely on said Stephen Berger, who is warranted, however. State and funding for treating unin- Downstate’s 376-bed hospital state support. chaired a 2011 group to rede- Comptroller omas DiNap- sured or Medicaid patients and its ambulatory care net- Cuomo in January an- sign Brooklyn’s health system. oli found in 2016 that the could still derail its e orts. work, building an 80,000- to nounced an award of $664 mil- “It makes no sense unless you hospital’s former restructur- Policy makers must consider 100,000-square-foot out patient lion to One Brooklyn, with put it all together,” he said. ing consultant Pitts Manage- Downstate’s important role in center. e strategy involves $36 million set aside for future LaRay Brown, chief exec- ment Associates, which it educating physicians, he said. collaborating with other facil- projects. Of the $700 mil- utive of Interfaith and of One paid $34 million from 2012 to Downstate trains one-third of ities in Brooklyn. lion total, $210 million is for Brooklyn, said she is looking 2015, billed the state for more Brooklyn doctors. Downstate’s most import- building a 32-site ambulatory- for ways to include Down- than $80,000 in “questionable” “Our impact is broader ant partner might be the One care network to keep people state—as well as the city-run expenses including lavish hotel than what is re ected on the
Brooklyn Health System, a healthy and out of the hospital. Woodhull and Kings County rooms and expensive dinners. balance sheet,” Riley said. ■ BUCK ENNIS
MARCH 5, 2018 | CRAIN’S NEW YORK BUSINESS | 7
P007_CN_20180305.indd 7 3/2/18 6:14 PM SPOTLIGHT TECH
MAKING WAVES: Pasquale (left) and Lettieri brought new tech to an old Throwing out industry. some new ideas Waste-management app looks to recharge carting BY MATTHEW FLAMM
fourth-generation member of a New York waste-hauling family, Adam Pasquale had been working in the industry for nearly two decades when he came up with an idea: create a carting company that doesn’t cart. Instead, it would provide waste pickups on demand using tech- Anology that has transformed other transportation sectors, namely a mobile app that hands o jobs to independent operators. e app would make it easy for customers to place orders and could alert them about arrivals and missed pickups. It also could document the waste trail for clients, who increasingly want to know where their garbage ends up. Pasquale bounced his ideas o his old friend Gregory Lettieri, who had ris- en through the telecommunications industry to become senior vice president of product management at Bank of America. Lettieri saw a good foundation for a business but wanted a second opinion from an expert versed in waste logistics. at was easy to arrange. ey met with Pasquale’s father, who would soon become one of the friends-and-family group that invested in Recycle Track Sys- tems before Lettieri and Pasquale launched it in 2015. Dad’s bet was a smart one. e company’s ability to track waste streams has given it an edge in navigating city regulations that require businesses to separate more and more of their trash, including electronics and food waste.
Leading the pack RTS now handles waste removal and recycling for more than 500 customers, including blue-chip businesses such as Whole Foods, Barclays Center, WeWork and e Pierre hotel. Revenue hit $10 million last year, up 300% from 2016. “We are a full-service waste company,” said Lettieri, who is chief executive. “We just happen to do it by not owning the trucks.” e company’s tech- rst approach works a little like Uber’s: e app nds the best match between a hauler’s existing routes and customers. One di erence, however, is that once a hauler and a customer are matched, RTS maintains that relationship rather than sending the nearest available truck the next time. RTS contracts with about 10 licensed operators vetted to meet its customers’ needs. “I’m working my own routes with my own business, and I’m adding their work,” said James Tesi, an owner of City Waste Services, which started working with RTS two years ago. He says the partnership has helped grow his business, an independent operator with nearly 20 trucks, by 8% to 10%. RTS has also been aggressive in creating sustainability programs. Recently it won Citi Field’s business by giving the stadium a top-to-bottom plan that includes signage, sta training, fan education, bins and comprehensive waste tracking. e aim is to keep organic waste free of plastic cups and straws so that composting farms will accept it. e startup will also monitor how much food waste is di- verted from land lls—where it breaks down into methane and contributes to global warming—and provide documentation the Mets can use in promoting their ecofriendliness. e franchise wants to stay ahead of the city’s pace. “We’ve wanted to be more aggressive with a lot of things, not just maintain the status quo,” said Michael Dohnert, Citi Field’s senior director of ballpark operations. “RTS was pretty aggressive.” e company’s services will cost more than that of the stadium’s previous pro- vider, Action Environmental Services. But Dohnert believes it is worth it. “We’re going to be getting so much of what we want on an organizational level,” he said. Some veterans of the industry point out that RTS is far from the only waste company using new technology and wonder how long it will be able to brand it- self as an innovator as other providers modernize. Action, for instance, is rolling out Routeware, a system that tracks routes, alerts clients to missed pickups and FOCAL POINTS performs post-trip analysis. e region’s largest waste hauler, Action continues “to hold very valuable relationships with other notable sporting venues in the area,” a spokeswoman said. NAME Recycle Track Systems But RTS argues that its app is part of an overall approach that can’t be easily INDUSTRY Waste hauling and recycling replicated by operators whose specialty has long been in transportation logistics. FOUNDED 2015 “Traditional waste companies are very good transporters,” Lettieri said. LOCATION Gramercy Park “ ey’re not good at data transparency and developing sustainability plans.” RTS sees its growth as just beginning. Over the summer it raised $11.7 mil- FOUNDERS Gregory Lettieri, CEO, and Adam Pasquale, COO lion in venture capital funding, which allowed it to expand into Philadelphia and BUSINESS MODEL Provide ef cient waste hauling that helps businesses Washington, D.C., during the fall. e company has also developed a network meet sustainability objectives through data analytics and a proprietary of composting and other organic recycling options that will become ever more tracking system important as the city expands the number of businesses required to separate 2017 REVENUE $10 million, up 300% from 2016 organic waste, as it’s expected to later this year. EMPLOYEES 35, up from eight the year before “We built [the business] because we thought there was a need,” not because
BUCK ENNIS he and Pasquale saw the regulations coming, Lettieri said. “We got lucky.” ■
8 | CRAIN’S NEW YORK BUSINESS | MARCH 5, 2018
P008_CN_20180305.indd 8 3/2/18 6:33 PM TRANSPORTATION
City Council bill aims to kneecap Uber and Lyft
Legislation would hit app-based services with regulations, fees LVSOHDVHGWRDQQRXQFHWKH)LUP¶V7UDQVLWLRQLQ BY MATTHEW FLAMM 2ZQHUVKLS &RQWLQXDWLRQRI,WV/HDGHUVKLS7HDP ber and Ly , your free ride All cars would have to be attached to 3DUWQHUV 0LFKDHO6/HRQH$UL*ROGHQ 6WHYH-*QDSUDJDVDP is over. a single base. Currently an e-hail driver Or it will be if the working for Uber can respond to a call +DYH$VVXPHG)XOO2ZQHUVKLSRIWKH9HU\6XFFHVVIXO Turner_4x6.indd 1 MARCH 5, 2018 | CRAIN’S NEW2/26/2018 YOR K 1:07:09 BUSINESS PM | 9 P009_CN_20180305.indd 9 3/2/18 3:50 PM VIEWPOINTS Three amigos of city’s tech scene need company Surging sector’s leaders are just beginning to nd their voice Only Kevin Ryan, Fred Wilson and TALK WITH any CEO issues, but in a few years they might companies and taking them public. Tim Armstrong of a fast-growing tech become a strong force in politics and Many have young children at home or company in New York government. are yet to start a family. know the politicians City and the conversa- For now, only three veterans of ey also can’t play the political tion soon turns to the tech in New York, self-described as the game as it is practiced in New York, and can command subway. When asked three amigos, know the politicians and because no matter how wealthy they their attention if all his employees can command their attention: may become, they aren’t liq- live in Brooklyn, Kevin Ryan, CEO of Double- uid enough to write the big GREG DAVID Warby Parker founder Click, founder of Gilt and % checks required in New York’s Neil Blumenthal said, funder of a series of startups, poorly regulated campaign- California politics. Amazon’s Je Bezos “Most of them—and we are very wor- and the only tech executive on nancing system. For the owns e Washington Post. 15PORTION of ried about the L shutdown.” the board of the Partnership same reason, they are not a big e four New York executives most Leading venture capitalist Fred for New York City; Wilson, tech workers force in philanthropy. likely to join the three amigos are Wilson took on the same issue last who sits on the board of the taking L train “ e two sides don’t get Blumenthal of Warby Parker, whose month, reporting that an informal poll partnership’s investment fund; each other yet,” said Julie company plans to give eyeglasses to he took suggested some 15% of New and Tim Armstrong, one of Samuels, executive director of 20,000 city schoolchildren; David York tech workers take that particular Google’s rst New York employees and Tech:NYC. Karp, founder of Tumblr and a board train. Zola CEO Shan-lyn Ma noted now CEO of Verizon’s Oath division. West Coast tech o ers a model for member at the Planned Parenthood that it isn’t just her workers; she takes City leaders have not made a big what could happen here. Microso ’s Bill Federation of America; Reshma Sau- the subway too, as do most tech CEOs. enough e ort to get to know their Gates and Facebook’s Mark Zuckerberg jani, Girls Who Code founder, who has e transit crisis is propelling tech counterparts in tech, Armstrong said, both have established billion-dollar already run for public oce twice; and execs into the public arena because adding, “Kevin, Fred and I have been foundations, which are active funders Daniel Huttenlocher, founding dean they see it as crucial to their compa- spending a lot of time working on this.” in the New York area. At least seven of Cornell Tech, who has shown he nies and themselves. Organized by As interested in government and Silicon Valley tech execs contributed— can navigate the perils of relationships Tech:NYC, they are talking to Albany politics as tech CEOs are, it isn’t sur- either directly or by fundraising—at with government. ■ politicians about what needs to be done prising that they are still feeling their least $100,000 to Hillary Clinton’s 2016 and how they could help. ey’re tak- way. Most are in their 30s and 40s and campaign, and the big companies have GREG DAVID blogs regularly at ing their rst steps into controversial consumed with the job of scaling their become major forces in national and CrainsNewYork.com. To win Amazon, don’t compete—collaborate New York should team up with Newark to land H2Q BY MOSES GATES oth New York City and New- Jersey also has bene ted from the ark made the list of nalists renewed attraction of its urban centers for Amazon’s new headquar- and proximity to New York, it contin- ters, along with 18 other ues to focus on large public subsidies to Bcities, from Toronto to Miami to Los attract companies. Angeles. It’s obvious what comes next: But with Amazon, Newark and New Amazon wants each city to compete York ought to take a di erent approach. for the prize of 50,000 jobs, adding tax Instead of competing, they should o er AMAZON’S breaks and other sweeteners to their the strengths of each city in a coordi- CAMPUS in Seattle, where proposal. It is a tried-and-true practice nated regional proposal. Neither city it has more for businesses that are looking to move would get the whole pie, but together than 40,000 or expand, one that leads to states and they could thrive. employees cities cannibalizing one another for e two cities are in di erent states, smaller and smaller bene ts. but they’re in one economy. New Jersey New York and New Jersey have a sends 320,000 commuters to New York for one company (to put that in per- workforce; world-class educational and long history of bidding each other down every day, and increasingly New York- spective, it is more than the size of the cultural institutions; and a diverse range to win jobs. Mayor Ed Koch famously ers are going the other way as well. It’s Empire State Building, the Chrysler of oce and housing options in one of produced an ad showing him guarding a 20-minute ride from the West Side to Building and 1 World Trade Center the largest metropolitan economies in a boarded-up Holland Tunnel, daring downtown Newark and only 30 min- combined) and homes for 50,000 more the world. any attempt to lure companies across utes from downtown Newark to Lower workers in one of the country’s most Instead of competing, New York and the Hudson River. Manhattan. e thing standing in the expensive markets. Newark could jointly submit a proposal But with a roaring economy, New way of a coordinated bid isn’t geogra- Newark would o er less expensive that would be both irresistible for Ama- York City is now in the driver’s seat. phy or economy; it’s political will. oce space, more a ordable housing zon and a better deal for both cities, Mayor Bill de Blasio, like Michael A coordinated bid would be a stron- for employees, excellent access to New- saving money while bringing jobs and Bloomberg before him, has leveraged ger one. We all know the strengths of ark Liberty International Airport and economic opportunity to both sides of the city’s position to limit tax abate- New York when it comes to attracting the opportunity to provide jobs and the Hudson. ■ ments and other incentives for such big business. But with the Amazon economic growth in a place where it deals. (New York’s proposal for Ama- bid, there are signi cant challenges as could be truly transformative. Together Moses Gates is director of community zon notably does not include any dis- well—not the least of which are the the two cities would o er even greater planning and design at the Regional BLOOMBERG cretionary incentives.) Although New cost of 8 million square feet of oces access to the region’s skilled, educated Plan Association. 10 | CRAIN’S NEW YORK BUSINESS | MARCH 5, 2018 P010_P011_CN_20180305.indd 10 3/2/18 2:07 PM Get serious on Gateway: Cut the cost Scaling back Amtrak’s pricey plan is the only way to make it feasible BY WILLIAM B. GALLIGAN t’s time to get realistic about the proposed rail including an existing track tunnel between New Jersey and Manhattan. As alongside the station that runs currently contemplated, the project is doomed. east to Seventh Avenue. From It won’t be funded by the feds, by state and local there, another tunnel would Igovernments or by the private sector. have to be built beneath Man- Both the size and the mission of the Hudson River hattan and the East River to tunnel—a crucial component of Amtrak’s Gateway connect with the Long Island Program to upgrade the Northeast Corridor for Rail Road’s freight-only Lower itself and NJ Transit—should be revisited immedi- Montauk line in Long Island ately. e project has been desperately needed since City—which ultimately con- the two existing Hudson tubes were severely dam- TUBULAR DEGENERATION: nects with the LIRR main line. Two aging tunnels are aged during Superstorm Sandy. at damage turned likely to fail unless at eastward extension a slow-moving problem—the need for increased closed for repairs. beyond Penn, an undertak- cross-Hudson capacity for passenger and freight ing separate from the Hud- trains—into a crisis that imperils the economic stabil- son tunnel project, would be ity of the entire metropolitan area. less expensive than Nadler’s Amtrak’s design for the tunnel is shockingly expen- freight-only tunnel between New Jersey and Brooklyn cross-harbor tunnel because the route is shorter and sive. at’s why nding money for it has proved so dif- that Rep. Jerrold Nadler has long advocated. Unfor- requires less underwater construction and fewer cult. e estimated price tag for the project soared tunately the entities conducting the environmental infrastructure upgrades. But for the extension to from $7.7 billion in early 2016 to nearly $13 billion a impact study for Gateway—NJ Transit and the Federal work, the Hudson tunnel has to come rst. little more than a year later. And raising funds for it Railroad Administration—have sided with Amtrak, If the existing circa-1910 Hudson rail tunnel is any seems likely to get harder. citing two principal objections to using the tunnel for guide, the new one could be in service for a century A cost-sharing arrangement negotiated during the freight. One is that the new tunnel would be too small or more. So let’s get this right before the die is cast. ■ Obama administration that required Washington to for modern freight cars. Wrong. Each tube would have pay 50% and New York and New Jersey the rest never a 25-foot inside diameter, su cient to accommodate William B. Galligan spent decades working for major produced the necessary funds for the tunnel, even the tallest freight cars in regular use. railroads. He co-founded the East of Hudson Rail a er two years of try- e other objection is that freight trains would have Freight Operations Task Force in 1999 with Rep. Jerrold Storm damage ing. Now the Trump to use Penn Station. Wrong again. Freights exiting Nadler and transportation lawyer John McHugh, then administration has the tunnel have several options for bypassing Penn, served as its executive director until 2014. GATEWAYPROGRAM.ORG turned a slow- indicated that the moving problem federal contribution to the project’s cost into a crisis that might shrink to 20%. imperils the What to do? For starters, the THREE TIMES economy of the design of the project must be reviewed to entire metro area determine whether A CHARM anticipated growth in Amtrak and NJ Transit ridership justi es a new Tenants Renewing at 655 Third Avenue tunnel with two tubes when just one might do the job for years to come. Only one new track is required to allow the two damaged tubes to be repaired, one at a time, while maintaining service at current levels. MITSUBISHI GAS CHEMICAL Adding one tube and restoring the two old ones 7,340 SF | Tatsuru Kono eventually would double the number of trains that Newmark Knight Frank can move in one direction during rush hour. In the morning Manhattan-bound trains would utilize two WINICK REALTY GROUP of the three tunnels; New Jersey–bound trains would 11,939 SF | Je Winick, Danielle Winick, use two in the a ernoon. Louis Eisinger, Steven Baker To maximize the nancial return, the new tubes must be used 24/7—which is impossible given FISCHER TRAVEL Amtrak’s adamant opposition to having freight trains 9,461 SF | Ross Pearlman & Ryan Gessin in its Hudson tunnels, even during long periods at Newmark Knight Frank night, when virtually no passenger trains travel under the river. Freight-train fees could bene t the nan- cially beleaguered railroad and allow it to reduce what it charges NJ Transit, easing upward pressure on com- muters’ fares. Rail tunnels all over the world are designed for THIRD AVENUE passengers and freight. Here, the Regional Plan Asso- ciation endorses dual use for Gateway to lessen our ASHLEA AARON notorious overdependence on trucks for intercity [email protected] | 212.257.6590 freight. Partly because of woefully inadequate rail ASHLEY GEE freight connections between New Jersey and New [email protected] | 212.257.6596 York, just 3% of shipments move by train east of the LINDSEY RAVESLOOT CULLEN Hudson, compared with nearly 40% nationwide. [email protected] | 212.257.6518 Using the new Hudson tunnel for freight trains also would obviate the need for the cross-harbor, MARCH 5, 2018 | CRAIN’S NEW YORK BUSINESS | 11 P010_P011_CN_20180305.indd 11 3/2/18 1:15 PM INSTANT EXPERT How changes to ood and wetlands maps will affect NYC BY RACHEL HOLLIDAY SMITH THE PLAYERS The state’s Department THE ISSUE of Environmental Con- 2servation will remap Big changes to the coastal risk areas by reviewing regulation of New wetland maps, some of which 1York land on or have not been updated since near the waterfront are the early 1970s, and con- coming from the federal ducting eld visits. Owners of and state governments. wetlands must go through special permit procedures to build on their The Federal Emergency land—or face thousands of dollars in nes. “Those maps can be con- Management Agency troversial,” said Jessica Ottney Mahar, policy director for The Nature has begun a yearslong Conservancy in New York. process to revamp its FEMA is updating its New York City ood maps in conjunction with ood maps in the city, local of cials over several years, said Jainey Bavishi, director of the which will affect tens of mayor’s Of ce of Recovery and Resiliency. “We’re at the table with thousands of property them as they’re revising the ood maps,” she said, adding that any owners. FEMA’s reas- map changes—whether by FEMA or DEC—allow the city to “better un- sessment is the rst for a large metropolitan area that takes derstand our risk and provide us with more information as we consider into account climate change. At the state level, Gov. Andrew which scenarios to adapt to.” Cuomo has made it a priority to reassess wetlands to identify coastal areas at increased risk of ooding. YEAH, BUT... It is vital for Preparing for environmental change is a bit like anyone with “nailing Jell-O to a tree,” said Elizabeth Malone, 3program manager for resiliency and insurance property inside at the nonpro t housing group NHS Brooklyn. Re- or near a ood search by FEMA and the city may take decades. In WHAT’S NEXT the meantime, Malone said, it is “vitally important” zone to lock in Remapping can take awhile. for anyone with property inside or near a current Bavishi said FEMA’s prelim- ood insurance ood zone to lock in ood insurance because the inary ood insurance rate because the rates will skyrocket when the new maps are com- 5 plete. For example, ood insurance for a two-family maps are to be released in 2021 and the nal versions in 2022. rates will house with a basement in a moderate-risk area For wetlands and coastal risk skyrocket when today costs about $800 a year, Malone said. But if property owners “wait until the map crosses them areas, the DEC did not say when the new maps it expects to complete its effort. ... then they are going to be looking at $2,600 to A spokesman, however, promised are complete $3,200, to start,” she said. comprehensive outreach, includ- ing public meetings, information sessions and hearings, to ensure that property owners are “in- formed and engaged throughout SOME BACKSTORY the process.” Unlike the impact FEMA’s ood insurance rate maps have not been of the next major storm, a heated signi cantly updated since 1983. In the wake of debate is quite predictable. 4Superstorm Sandy, the agency released a preliminary one for New York City in January 2015. It would have in- creased the number of homes and properties in ood zones by tens of thousands. The city appealed, and FEMA agreed GOWANUS to revise its estimates and work with local authorities to Oct. 30, 2012 better re ect ooding risks—the process now underway. But it is certain that many more properties will be deemed at risk. The city’s own appeal estimated that the number of buildings in zones with at least a 1% chance of ooding in a given year could increase by one-quarter, to 45,000 buildings from 36,000. Changes to wetlands maps—as opposed to ood maps—will have a less dramatic effect because marshy areas in the city have largely been built over. Among the boroughs, only Staten Island still has signi cant acreage of regulated wetlands—72 areas, with 4,500 owners. Long Island, by comparison, has 1,108 designated wetlands. GOVERNOR ANDREW CUOMO/FLICKR, AP IMAGES, GETTY IMAGES 12 | CRAIN’S NEW YORK BUSINESS | MARCH 5, 2018 P012_CN_20180305.indd 12 3/2/18 1:51 PM THE LIST NY AREA’S LARGEST WOMEN-OWNED COMPANIES Ranked by 2017 revenue !1)82 %B2( %80%8)@ %8'A''2 %8)6 799 2E )A5%83 26(% #%491 8%26F9 )C $783 A926)99 8%26F9 6' 6' FOR ALL CRAIN’S LISTS, GO TO CRAINSNEWYORK.COM/LISTS. MARCH 5, 2018 | CRAIN’S NEW YORK BUSINESS | 13 P013_CN_20180305.indd 13 3/2/2018 2:04:24 PM WORKFORCE UPS AND DOWNS OF Pay is up across the board, but those gains are squeezing many RISING WAGES companies’ pro ts BY AARON ELSTEIN ior Rachmany immigrated in 1998 from Tel Aviv with hopes of making it in music. Like many young Israelis at the time, he got a job as a mover because he liked the exible hours and getting Lpaid in cash. Nine years later, he launched Dumbo Moving and Storage, which today has more than 70 trucks and nearly 300 employees. He proudly notes his rm is larger than 99.5% of its competitors. PRICE OF SUCCESS: Rachmany owns one of the city’s top moving companies, but higher wage minimums are cutting his margins. BUCK ENNIS 14 | CRAIN’S NEW YORK BUSINESS | MARCH 5, 2018 P014_P015_CN_20180305.indd 14 3/2/18 4:02 PM But even though business is trucking along, HOW THEY’RE DOING Rachmany said, pro t margins are getting squeezed because wages are growing faster than revenue. Four PAY IS INCREASING across a variety of industries and occupations. On a percentage basis, lawyers years ago he paid entry-level movers around $9 per continue to rank among the city’s leading earners. Bartenders’ wages, while still relatively low, are hour. Today, by law, he has to o er at least $13. To growing at a faster rate than those for many other jobs. hold down costs, he’s putting fewer movers onto trucks and increasing their workload. “President Trump gave us a nice break on taxes,” Rachmany said, “but any bene t is being eaten up by the government raising my labor costs.” It’s a common refrain among small-business owners. Wages have been rising steadily for sev- eral years, and median real pay is up by 6.3% since 2013. It’s the longest such stretch since the early 1980s, when many city employers were eeing for the suburbs. “ is expansion is unique because, perhaps for the rst time in 60 years, it’s not reliant on a boom- AVERAGE ANNUAL SALARY BY INDUSTRY (PERCENTAGE GROWTH SINCE 2014) ing Wall Street,” said James Parrott, director of economic and scal policies at the New School’s Architect ------$92,140 (+10%) Fashion designer ------$82,960 (+2%) Real estate broker ---$114,630 (-2%) Center for New York City A airs. “ is expansion is Bartender ------$30,870 (+19%) Fast-food cook ------$22,570 (+11%) Registered nurse ------$86,850 (+1%) broader, with wages rising across industries.” Clergy ------$53,590 (+7%) Financial adviser -----$161,720 (+2%) Reporter ------$71,470 (0%) Parrott added that wage growth has been espe- Dental assistant ------$38,320 (+7%) Housekeeper ------$33,500 (-10%) Retail salesperson ----$27,880 (+4%) cially strong among the lowest-paid workers, with Dentist (+5%) Lawyer (0%) Roofer (+13%) many people earning around $22,000 per year ben------$161,360 ------$167,960 ------$74,190 e ting from a nearly 11% growth in median wages Detective ------$94,110 (+8%) Paralegal ------$61,220 (+2%) Subway operator ------$75,410 (+6%) during the past four years. And hourly wages are Elementary school Public relations Theater director ------$119,710 (+3%) growing faster for African-American and Latino teacher ------$78,410 (+4%) specialist ------$71,540 (0%) Waiter ------$30,030 (+9%) workers than for white employees. Rising wages were at least partly responsible for the stock market’s Figures not adjusted for in ation. SOURCE: U.S. Bureau of Labor Statistics recent upheaval, as investors worried higher salaries could spark the rst wave of in ation in decades. 50%, to $7.50 per hour. at mandatory minimum, base salaries,” Cooke said. “Broadly, those who were In demand now $8.65, is rising to $10 next year. Because there’s paid less are getting fairer o ers.” One reason wages are up is that quali ed workers only so much Bloostein can charge for a burger and Of course, for some high-end workers, big- are harder to nd. e city’s unemployment rate is a brew, he said, he is asking city ocials to let restau- ger wages aren’t much of an issue. To retain them, just 4.3%, and a record 4.4 million New Yorkers have rants charge customers an administrative fee of up employers are handing out perks such as on-site jobs. e number of people telling their boss to take to 5% to help o set labor costs. CrossFit and yoga classes, gym memberships, vaca- this job and shove it has reached a postrecession high, “A year from now my industry could be on its tion stipends and even pet insurance. Cathleen according to the U.S. Department of Labor—a sign ass,” he said. Graham, managing partner at consulting rm Cheer people are con dent they can nd work elsewhere. Another factor fueling pay hikes is a law the Partners, said one client pays employees $5,000 a At the same time, layo s and other involuntary dis- city adopted in October that bars employers from year to help cover student loans, while online retailer charges have declined to a postrecession low. asking applicants about their salary history. In its Boxed provides up to $25,000 for wedding expenses. Not only do workers have more options than most recent survey of regional activity, the Federal “Everyone wants to work there,” Graham said. PRICE OF SUCCESS: Rachmany before, the city or state is also ordering employers Reserve Bank of New York said that law might be Two Sigma Investments, a hedge fund launched owns one of the city’s top moving companies, but higher to pay more to those making the in New York in 2001 that now has wage minimums are cutting least. e city’s minimum wage last $52 billion under management, his margins. year rose to $13 per hour from $11 THE NUMBER OF PEOPLE TELLING goes even further to keep its 1,200 for companies with more than 10 employees happy. e top of its SoHo employees. Fast-food workers have THEIR BOSS TO TAKE THIS JOB headquarters, the so-called amenity an even higher minimum wage: AND SHOVE IT HAS REACHED oor, features a professional-quality $13.50 per hour, nearly 30% more music studio with a grand piano, than two years ago. A POSTRECESSION HIGH drums, several guitars, DJ equip- Many business owners are looking ment and inspiring views of the to stay ahead of those increases. Ellie world beyond. e Algorhythms, an Kim, who owns a Chick- l-A franchise that opened having an e ect. And Oliver Cooke, head of recruit- in-house band, rehearses in the space aer a busy last week on East 42nd Street, said she is paying sta ing rm Selby Jennings, said the law is forcing Wall day hunting for investment opportunities. Exec- members at least $15 an hour to get in front of the Street rms to o er women signi cantly better pay utives say such perks help them compete with the minimum-wage increase to that level next year. packages. at is welcome news because in recent likes of Google for talent. For others, the rapid rise in labor costs is too much weeks Barclays and other banks have disclosed that “ e studio is pretty well soundproofed but not to handle. Heartland Brewery owner Jon Bloost- female employees on average are paid about half as completely,” said Keith Barr, Two Sigma’s head of ein said he closed two restaurants aer the state much as their male counterparts. design and construction. “I ask people not to turn increased the minimum wage for tipped workers by “Some candidates have gotten 100% increases in the sound all the way up to 11.” ■ BALANCED GAINS MINORITY GAINS HOT PERKS By percentage change, hourly wages increased faster Hourly wages increased more rapidly for African- for New York’s lowest-paid earners than for those in the American and Latino workers than for white employees ● Unlimited paid time off middle, but the top 10% continues to set the pace. since 2013. The average pay for Asian-American ● Full medical coverage Growth rate workers appears to be tumbling. Growth rate ● On-site yoga classes 20% +16.6% 10% ● Paid gym memberships and bonuses 15% +9.4% +8.7% for staying t +10.6% +5.2% 10% 0 ● Vacation stipends +6.3% ● Tuition reimbursement 5% -11.8% ● Pet bene ts such as dog-walking services -12% 0 Black Hispanic White Asian and and animal health insurance Bottom 10% Median Top 10% others SOURCES: James Parrott, Current Population Survey ISTOCK MARCH 5, 2018 | CRAIN’S NEW YORK BUSINESS | 15 P014_P015_CN_20180305.indd 15 3/2/18 4:13 PM P016_P017_CN_20180305.indd 16 BUCK ENNIS VENDORS STREET 16 | CRAIN’S NEWYORKBUSINESS The future corporate Connecting small operators small Connecting with big brands, atech brings rm franchises to city sidewalks carts food food of BY WILLBREDDERMAN | M ARCH 5,2018 is is E reports focused on compact,reports the focused de- ecofriendly buted its MRV100 mobile kitchen in2015,media inLong Islandbased City. When company the de- understands them.’ ” let’sthem, work with through them, somebody who provement “So districts. we said, ‘Instead of ghting nership and Street 34th Partnership business im- Grand inthe aleader Biederman, Part also Central - atically to protect our rights on sidewalks,” the said with Parks the Department. over as provided sidewalks the by his arrangement areato the beautify but violated also its authority dors not only his undermined organization’s e orts complained repeatedly to authorities that ven the - founder, “horrendous-looking.” them called He toEastern Middle American. tensive pictorial menus of fare ranging from Middle ticker-style LEDdisplays, colorful umbrellas and ex- gutturaltheir generators, diesel charcoal sooty grills, pro lethe common across ve the boroughs, with andFi h Sixth avenues. e lunch buggies matched wagonslal that camped along 42nd Street between green spaceand its run concessions, battled ha the - with city the has to deal adecades-old maintain the vending. and breaking ground new world inthe of mobile that are they treading once bitterly disputed turf are fries and probablyfranks crinkle-cut oblivious gleaming. and yellow mustard Biederman went to Move Systems, astartup “We’ve able never been to get system police the - But he had little success. Daniel Biederman, Bryant Park Corp.’s co- For nearly ve years Bryant Park Corp., which But stop who those to buy franchise’s the famous and Nathan’s has three of them there, there, of them Nathan’s three and has for place ahot dog cart— abetter nd to It hard be would Park. of Bryant edge northern the Yorkers along walk New and of tourists thousands day ach did in2008. roughly three as times many chain as they bakeries spots shot up by 65%, and boroughs the now boast grew byeries 14%. e number of corporate co ee number during eat fast-food past while - the decade, “fast-casual” eateries had more than doubled in Center tank for think the an Urban Future, found rants and cafés, a2017study found. e report, by explosive growth number inthe of big-brand restau- and-mortar storefronts past driven inthe decade, by restaurants into market. street-food the olutionary about Move’s was model bringing chain frompulled city the grid. with solar power, natural currents gas and electrical replaced which sign, smoky the and diesel charcoal such exploitative extralegal, arrangements. year for permits tens of thousands of dollars. aspiring chefs to rent unlawfully sidewalk two- their nize into an elaborate and illicit cartel, obligating $200. is has allowed longtime to licensees orga- holders can simply two years renew for every them year-round, of food ber curbside licensesto sell and city’sthe permits. and extortionate is illegal the ect, racket controlling Basinski ofSean nonpro t the Street Vendor Proj- ofopen carts its own. What’s stopped said them, ny, like McDonald’s or Dunkin’ Donuts, would soon long haunted been by rumors that amajor compa- on ahandful of But carts. advocates for vendors have family-and-friends-run vendors with names their as Ra qi’s and e Halal Guys: based locally to amajor boasting brand were operators such corporate trend. For years came closest the they Branded Chains have proliferated across city’s the brick- Environmental bene ts aside, what rev - was truly Big business has little interest inentering into A much-maligned city law caps at num 5,100 the - e city’s street have carts largely resisted the on cityfoot traf c. chains lookingtocapitalize among aslew offast-food DOGS TO WALK: Nathan’s is 3/2/18 3:41 PM DOGS TO WALK: Nathan’s is among a slew of fast-food chains looking to capitalize on city foot traf c. “ ey would have to buy permits on the black holders to be present at carts at all times of opera- market,” Basinski said. “McDonald’s is not interested tion, which Basinski argues would make the current in putting their corporate ass on the line and break- illegal rental system untenable. ing the law in public.” With the arrival of Move, “it BID leaders have opposed such proposals—the now seems to be happening,” Basinski added. latest of which died in a council committee at the e four-year-old company has become an am- close of last year—because they feared the city would bassador between the chicken-and-rice merchants not enforce them. But any move that liberates per- and national chains, and sets up franchise agree- mits from the black market will make carts more ments between the two parties. e corporations get attractive to fast-food giants—unless the law speci - new locations hawking their products. e vendors cally bars them. And the vendors’ primary advocacy get to ride on a big brand’s name recognition, adver- group will surely call for that. tising and bulk products. And Move Systems o ers “Vendors are independent small businesses; we the vendors a lease agreement for a spi y new cart. must keep the industry from being corporatized,” “You have this market ine ciency of vendors Basinski said. “ e city, which failed to pass vending who knew how to get their carts on the street and reform last term, needs to address this issue.” how to work in the system but didn’t have access to Move, meanwhile, plans to roll out a dozen new the high-quality brands,” said CEO James Meeks. carts each month as warmer weather ushers in peak “ en you had the brands, who would be happy to vending season. And it won’t be only Nathan’s; the nd a new way to distribute their product but did anks to the intricacies of Bryant Park Corp.’s company also has arrangements with Le Pain Quoti- not know how to deal with the logistics.” deal with the city and the thawed relations between dien and a host of as-yet-unannounced brand-name At Bryant Park, Move Systems talked the ven- the management organization and the vendors, Akl partners. dors o their hot dog and pretzel carts and onto and his peers were able to break out of the black “People are recognizing that the New York popu- Nathan’s-branded MRV100s. e new franchisees market altogether. Technically, merchants work- lation has higher expectations of what quality food told Crain’s they considered it an improvement in ing on sidewalks adjoining public parks need a might look like,” Meeks said. “We showed the ven- every way. restricted-area permit, issued separately from the dors how they could increase their pro ts with a “We raised the standard of our food product. We cartel-controlled mobile food vendor licenses. better product.” are using a very famous brand, and customers trust e carts previously operated in violation of this Akl agrees and now says that he has become an the brand,” said Maged Akl, a seven-year veteran rule. Now, with Biederman’s blessing, they have legal evangelist for the franchise model. of street food sales. “In the past we didn’t have any permits from the city to work alongside Bryant Park. “We start to inform our friends in the market that names to serve. e customer did not trust the cart, In so doing, they point toward a future where the we have a good business here with a Nathan’s fran- because the cart contained many brands. We are city has nally rationalized vending. e City Coun- chise, and the guys [are] thinking about trying this,” serving a food with a history of good taste, and that cil has for several years weighed legislation that the cart runner said. “We are going to spread the makes me very con dent.” would expand the number of permits and require idea across all the shish kebab carts on the street.” ■ 2018 HERITAGE HEALTHCARE INNOVATION AWARDS Nominate an exceptional leader, pioneer or trailbazer in New York healthcare PRESENTED BY Dr. Richard Merkin President and CEO Heritage Provider Network Finalists will be awarded in the following categories: HERITAGE HERITAGE HERITAGE INNOVATION IN HEALTHCARE INNOVATORS IN HEALTHCARE LEADERSHIP HEALTHCARE DELIVERY HERITAGE AWARD AWARD AWARD RESEARCH HERITAGE INVESTIGATORS HEALTHCARE IN TRANSLATIONAL ORGANIZATIONAL LEADERSHIP MEDICINE AWARD AWARD Nominations open now Deadline March 23 2018 HELP US RECOGNIZE THE BEST of today’s Finalists will be honored at a luncheon healthcare clinicians, administrators and in NYC on May 21 researchers in New York who are making Mark Wagar, President, Heritage Medical measurable improvements in health status, Systems, Master of Ceremonies improving access to healthcare, positively For more information, visit impacting patient quality of care and crainsnewyork.com/heritage demonstrating long term affordability. Awards open to applicants working in all five boroughs of New York City Nominate a colleague, a peer or yourself. as well as Nassau, Suffolk, Westchester and Rockand counties. Heritage_Half.indd 1 2/28/18 6:50 PM MARCH 5, 2018 | CRAIN’S NEW YORK BUSINESS | 17 P016_P017_CN_20180305.indd 17 3/2/18 3:42 PM TO PLACE A CLASSIFIED AD, CALL 1 212-210-0189 OR EMAIL [email protected] PUBLIC & LEGAL NOTICES Notice of Qualification of APOLLO HD Notice of formation of HEALTH POINTE Notice of Formation of VIPVR, LLC Notice of Qualification of BROOKFIELD MANAGEMENT, L.P.Appl. for Auth. filed OF NEW YORK, LLC Arts. of Org. filed Arts. of Org. filed with Secy. of State STRATEGIC REAL ESTATE PARTNERS III- with Secy. of State of NY (SSNY) on with the NY Sect’y of State (SSNY) on of NY (SSNY) on 02/12/18. Office lo- A L.P. Appl. for Auth. filed with Secy. of 02/09/18. Office location: NY County. 1/30/2018. Office located in NY Coun- cation: NY County. Princ. office of State of NY (SSNY) on 02/14/18. Of- LP formed in Delaware (DE) on ty. SSNY has been designated as LLC: Attn: Prajit Gopal, 2373 Broad- fice location: NY County. LP formed in 11/27/17. Duration of LP is Perpetual. agent of the LLC upon whom process way, Apt. #1723, NY, NY 10024. Delaware (DE) on 07/11/17. Princ. of- SSNY designated as agent of LP upon against it may be served. SSNY shall SSNY designated as agent of LLC fice of LP: Brookfield Place, 250 Vesey whom process against it may be mail process to: c/o Independent Living upon whom process against it may be St., 15th Fl., NY, NY 10281. Duration served. SSNY shall mail process to c/o Systems, LLC, 810 7th Ave, NY, NY served. SSNY shall mail process to of LP is Perpetual. SSNY designated as Corporation Service Co. (CSC), 80 10019. Purpose: any lawful act. the LLC at the addr. of its princ. of- agent of LP upon whom process State St., Albany, NY 12207-2543. fice. Purpose: Any lawful activity. against it may be served. SSNY shall Name and addr. of each general part- mail process to the Partnership at the ner are available from SSNY. DE addr. princ. office of the LP. Name and addr. of LP: c/o CSC, 251 Little Falls Dr., Wil- Notice of Qualification of FLIGHT CLUB of each general partner are available mington, DE 19808. Cert. of LP filed NEW YORK LLC Appl. for Auth. filed Broome Street Penthouse, LLC. Arts. of from SSNY. DE addr. of LP: Corporation with The Secy. of State of the State of with Secy. of State of NY (SSNY) on 0 Org. filed with the SSNY on 01/11/18. Service Co., 251 Little Falls Dr., Wil- DE, Dept. of State, Div. of Corps., John 1/22/18. Office location: NY County. Office: New York County. SSNY designat- mington, DE 19808. Cert. of LP filed G. Townsend Bldg., 401 Federal St., LLC formed in Delaware (DE) on 10/ ed as agent of the LLC upon whom proc- with DE Secy. of State, Dept. of State, Ste. 4, Dover, DE 19901. Purpose: 05/17. NYS fictitious name: FLIGHT ess against it may be served. SSNY shall Div. of Corps., John G. Townsend Bldg., Any lawful activity. CLUB NEW YORK (DE) LLC. SSNY des- mail copy of process to the LLC, c/o Jer- P.O. Box 898, Dover, DE 19903. Pur- ignated as agent of LLC upon whom ry Feeney, 33 East 33rd Street, 4th pose: Any lawful activity. process against it may be served. Floor, New York, NY 10016, which also SSNY shall mail process to c/o Corpo- serves as the registered agent address. ration Service Co. (CSC), 80 State St., Purpose: Any lawful purpose. Albany, NY 12207-2543. DE addr. of Notice of Qualification of CK ROYALTY LLC: c/o CSC, 251 Little Falls Dr., Wil- AND INVESTMENT MANAGEMENT, LLC mington, DE 19808. Cert. of Form. ROCKWELL PRESS, LLC, Arts. of Org. Appl. for Auth. filed with Secy. of State filed with Secy. of State, John G. Town- filed with the SSNY on 10/27/2017. BASIL REALTY LLC. Arts. of Org. filed of NY (SSNY) on 02/08/18. Office loca- send Bldg., 401 Federal St., Ste. 4, Office loc: NY County. SSNY has been with the SSNY on 12/22/17, with an tion: NY County. LLC formed in Dela- Dover, DE 19901. Purpose: Any law- designated as agent upon whom proc- existence date of 01/01/2018. Office: ware (DE) on 11/13/17. SSNY desig- ful activity. ess against the LLC may be served. nated as agent of LLC upon whom proc- New York County. SSNY designated as SSNY shall mail process to: The LLC, ess against it may be served. SSNY agent of the LLC upon whom process 345 Haines Road, Bedford Hills, NY shall mail process to c/o Corporation against it may be served. SSNY shall 10507. Purpose: Any Lawful Purpose. Service Co., 80 State St., Albany, NY mail copy of process to the LLC, 51 12207-2543. DE addr. of LLC: 251 Lit- Notice of Qualification of ElliptiCurve West 14th Street, New York, NY tle Falls Dr., Wilmington, DE 19808. Capital Management LP Appl. for Auth. 10011. Purpose: Any lawful purpose. Cert. of Form. filed with Secy. of State, filed with Secy. of State of NY (SSNY) 401 Federal St., Dover, DE 19901. Pur- on 01/09/18. Office location: NY Coun- pose: Investment advisor. ty. LP formed in Delaware (DE) on 01/ 04/18. Princ. office of LP: 135 E. 57th Notice of Formation of POETIC St., 8th Fl., NY, NY 10022. Duration of Notice of formation of Trufflery LLC. Arts GROUP LLC Arts. of Org. filed with LP is Perpetual. SSNY designated as of Org filed with Secy of State of NY Secy. of State of NY (SSNY) on 02/ agent of LP upon whom process (SSNY) on 12/11/17. Office location: NY 06/18. Office location: NY County. against it may be served. SSNY shall County. SSNY designated agent upon SSNY designated as agent of LLC Notice of formation of limited liability mail process to Attn: Stephen L. whom process may be served and shall upon whom process against it may company (LLC). Name: 529, LLC. Arti- Moskowitz, 225 E. 63rd St., Apt. 7C, mail copy of process against LLC to: US be served. SSNY shall mail process cles of Organization filed with Secretary NY, NY 10065. Name and addr. of Corp Agents Inc 7014 13th Ave #202 BK to c/o Adam Berkowitz, 1330 Ave. of State of New York (SSNY) on 11/ each general partner are available from NY 11228. Principal business address: of the Americas, 14th Fl., NY, NY 03/2017. NY office location: New York SSNY. DE addr. of LP: c/o Corporation 796 9th Ave 2 NYC 10019. Purpose: any 10019. Purpose: Any lawful activity. County. SSNY has been designated as Service Co., 251 Little Falls Dr., Wil- lawful act. agent of the LLC upon whom process mington, DE 19808. Cert. of LP filed against it may be served. The post of- with Secy. of State of the State of DE, fice address to which the SSNY shall Div. of Corps., John G. Townsend Bldg., mail a copy of any process against the Federal & Duke of York Sts., Dover, DE LLC served upon him/her is Cayla 19901. Purpose: Any lawful activity. Formation of First Tracks Management, O’Connell, 263 Ninth Avenue 7D New LLC filed with the Secy. of State of NY York, NY 10001. Purpose/character of (SSNY) on 1/10/18. Office loc.: NY Rothman Orthopaedics of New York, LLC: Any Lawful Purpose. County. SSNY designated as agent of PLLC. Articles of Org. filed Sec. of Notice of Qualification of G&S INVEST- LLC upon whom process against it may State (SSNY) on 12/4/17. Office: 29 ORS CONSTRUCTION MANAGEMENT be served. The address SSNY shall E. 19th St., 7th Fl., NY, NY 10003, NY LLC Appl. for Auth. filed with Secy. of mail process to 750 Third Ave., 33rd County. SSNY desig. agent of LLC State of NY (SSNY) on 01/24/18. Of- Fl., New York, NY 10017. Purpose: upon whom process may be served. fice location: NY County. LLC formed in Any lawful activity. SSNY shall mail copy of process to Nix- NOTICE OF FORMATION of JOEL J. BA- Delaware (DE) on 01/19/18. SSNY on Peabody LLP, 677 Broadway, Alba- UER, M.D. PLLC. Articles of Organiza- designated as agent of LLC upon whom ny, NY 12207. Purpose: medicine. tion were filed with the Secretary of process against it may be served. State of New York (SSNY) on 1/ SSNY shall mail process to the LLC, Notice of Formation of UNTIL ONE HUN- 12/2018. Office location: New York 211 E. 43rd St., 25th Fl., NY, NY County. SSNY has been designated as DRED TWENTY, LLC Arts. of Org. filed 10017. DE addr. of LLC: 251 Little with Secy. of State of NY (SSNY) on agent of the LLC upon whom process Notice of formation of Andreas Gomoll Falls Dr., Wilmington, DE 19808. Cert. 01/11/18. Office location: NY County. against it may be served. SSNY shall LLC. Arts of Org filed with Secy. of of Form. filed with Secy. of State, 401 SSNY designated as agent of LLC upon mail a copy of any process to the LLC c State of NY (SSNY) on 12/7/17. Office Federal St., Dover, DE 19901. Pur- whom process against it may be /o Levy, Stopol & Camelo, LLP, 1425 location NY County. SSNY designated pose: Any lawful activity. served. SSNY shall mail process to c/o RXR Plaza, Uniondale, NY 11556-1425. agent upon whom process may be Matthew H. Kamens, 1650 Market St., Purpose: For any lawful purpose. served and shall mail copy of process Ste. 2800, Philadelphia, PA 19103. against LLC to principal business ad- Purpose: Any lawful activity. Notice of Qualification of THE OMARA dress: 350 E 79th Street, New York, PROJECT LLC Appl. for Auth. filed with NY 10075. Purpose: any lawful act. Secy. of State of NY (SSNY) on 01/10/18. Office location: NY County. NOTICE OF FORMATION of Fortitude Sol- LLC formed in Delaware (DE) on Notice of Formation of AVALANCHE utions, LLC. Articles of Organization of 10/19/17. SSNY designated as agent of FALLS LLC Arts. of Org. filed with Secy. NOTICE OF FORMATION OF NERVE Los Fortitude Solutions, LLC were filed with LLC upon whom process against it may of State of NY (SSNY) on 01/30/18. Of- Tres Preservation, LLC Application for Secy of State of New York (SSNY) on be served. SSNY shall mail process to fice location: NY County. Princ. office Authority filed with the SSNY on 01-11- 1/2/18. Office location: NY County. c/o Corporation Service Co. (CSC), 80 of LLC: 299 Park Ave., 42nd Fl., NY, NY 18. Office: New York County. SSNY SSNY is designated as agent of the State St., Albany, NY 12207-2543. DE 10171. SSNY designated as agent of designated as an agent of LLC upon LLC upon whom process against it may addr. of LLC: c/o CSC, 251 Little Falls LLC upon whom process against it may whom process against it may be be served and shall mail a copy of the Dr., Wilmington, DE 19808. Cert. of be served. SSNY shall mail process to served. SSNY shall mail a copy of proc- process to 245 Park Avenue, 18th Form. filed with DE Secy. of State Corps. the LLC, Attn: General Counsel at the ess to 251 Little Falls Drive, Wilming- Floor, NY NY 10167. Purpose is: all Div., 401 Federal St., Dover, DE 19901. princ. office of the LLC. Purpose: Any ton, DE 19808. Purpose: any lawful lawful acts or activities. Purpose: Any lawful activity. lawful activity. activity. 18 | CRAIN’S NEW YORK BUSINESS | MARCH 5, 2018 P018_CN_20180305.indd 18 3/1/2018 4:03:28 PM TO PLACE A CLASSIFIED AD, CALL 1 212-210-0189 OR EMAIL [email protected] PUBLIC & LEGAL NOTICES NOTICE OF FORMATION of Wollman GREY HOUSE NYC LLC, Arts. of Org. Arts. of Org. of 74 Beach Road, LLC Notice of Formation of ARTEMESIA SPE Consultants LLC. Articles of Organiza- filed with the SSNY on 01/08/2018. filed with SSNY on 1/2/18. Office in LLC Arts. of Org. filed with Secy. of tion filed with the Secretary of State of Office loc: NY County. SSNY has been NY County. SSNY is LLC’s agent to re- State of NY (SSNY) on 02/15/18. Of- New York (SSNY) on December designated as agent upon whom proc- ceive process, will mail to WeWork c/o fice location: NY County. SSNY desig- 15th,2017. Location: Richmond Coun- ess against the LLC may be served. Pale Horse Realty, LLC, 85 Broad nated as agent of LLC upon whom proc- ty. SSNY designated as agent for serv- SSNY shall mail process to: The LLC, Street, New York NY 10004. General ess against it may be served. SSNY ice of process on LLC. SSNY shall mail 555 West 59th St., Unit 14C, NY, NY purpose. shall mail process to c/o Royalton Capi- a copy of process to: Andriena Wollman 10019. Purpose: Any Lawful Purpose. tal, LLC, 18 E. 48th St., 19th Fl., NY, 55 Ionia Ave, Staten Island, N.Y. NY 10017. Purpose: Any lawful activity. 10312 Purpose: Any lawful purpose. Notice of Qualification of PURE GROWTH MCS LLC Appl. for Auth. filed NOTICE OF FORMATION OF James Seo with Secy. of State of NY (SSNY) on Notice of Qualification of SOVEREIGN Commercial, LLC. Articles of Organiza- 02/06/18. Office location: NY County. Notice of Qualification of INTEGRATED VALUE-ADD & INCOME STRATEGY, LLC tion filed with the Secretary of State of LLC formed in Delaware (DE) on ASSETS III LLC Appl. for Auth. filed with Appl. for Auth. filed with Secy. of State NY (SSNY) on 12/07/17. Office loca- 02/15/17. Princ. office of LLC: 680 Secy. of State of NY (SSNY) on 01/ of NY (SSNY) on 02/21/18. Office lo- tion: NEW YORK County. SSNY has 5th Ave., 8th Fl., NY, NY 10019. 31/18. Office location: NY County. LLC cation: NY County. LLC formed in Dela- been designated as agent upon whom SSNY designated as agent of LLC formed in Delaware (DE) on 01/29/18. ware (DE) on 02/01/18. SSNY desig- process against it may be served. The upon whom process against it may be SSNY designated as agent of LLC upon nated as agent of LLC upon whom Post Office address to which the SSNY served. SSNY shall mail process to whom process against it may be process against it may be served. shall mail a copy of any process the LLC at the princ. office of the LLC. served. SSNY shall mail process to c/o SSNY shall mail process to the LLC, c against the LLC served upon him/her DE addr. of LLC: c/o The Corporation Corporation Service Co. (CSC), 80 /o Sovereign Partners, LLC, 747 Third is: Registered Agent Solutions, Inc., 99 Trust Company, Corporation Trust Cen- State St., Albany, NY 12207-2543. DE Ave., 37th Fl., NY, NY 10017. DE Washington Ave., Suite 1008, Albany, ter, 1209 Orange St., Wilmington, DE addr. of LLC: c/o CSC, 251 Little Falls addr. of LLC: 251 Little Falls Dr., Wil- NY 12260. The principal business ad- 19801. Cert. of Form. filed with Jeffrey Dr., Wilmington, DE 19808. Cert. of mington, DE 19808. Cert. of Form. dress of the LLC is: 30 W 60th Street, W. Bullock, Townsend Bldg., 401 Fed- Form. filed with DE Secy. of State, John filed with DE Secy. of State, 401 Fed- Floor 2, New York, NY 10023. Purpose: eral St., #4, Dover, DE 19901. Pur- G. Townsend Bldg., 401 Federal St. - eral St., Ste. 4, Dover, DE 19901. any lawful act or activity. pose: Any lawful activity. Ste. 4, Dover, DE 19901. Purpose: Purpose: Any lawful activity . Any lawful activity. MARCH 5, 2018 | CRAIN’S NEW YORK BUSINESS | 19 P018_CN_20180305.indd 19 3/1/2018 4:03:34 PM GOTHAM GIGS TISON GIVES a lesson to the staff cooks at Lenox Hill Hospital. BY LANCE PIERCE What’s cooking at Chez Northwell A Michelin-star chef is reinventing hospital food at the state’s largest health system BRUNO TISON runo Tison fastened a generous clump of let photo of his latest creation: a towering salad of avocado and mignon with butcher’s twine, seasoned it with fresh tuna tartare with an herb emulsion. salt and pepper, and sauteed it in a blazing hot Hospital food didn’t exactly use to be Northwell’s AGE 58 pan with an herb-infused demi-glace. strong suit. Many past patients rated its meals as “not BORN Somain, France BA er the chef taste-tested the meat with satisfaction, his good, or awful,” said Sven Gierlinger, Northwell’s vice RESIDES Great Neck, Long Island protégés in the basement kitchen at Lenox Hill Hospital president and chief experience o cer. Gierlinger, himself EDUCATION Institut Technique quickly gobbled up the rest. a trained chef, hired Tison to turn things des Metiers de l’Alimentation, In his former life in the rare ed world of I always think around. “Food has been treated as a liabili- Tournai, Belgium ne dining, Tison earned a coveted Michelin “ ty, as a cost item, but we’re changing it into OUTSIDE PURSUITS Skiing, star as executive chef of the Fairmont Sonoma of cooking for an asset,” Gierlinger said. y- shing and admiring luxury Mission Inn & Spa in California. someone as Tison aims to accomplish that goal sports cars Since October Tison has been working at by 2021. e health system has banned ROLE MODEL Tison was raised by the greatest his grandfather, who had a bakery Northwell Health, the state’s largest health artery-clogging trans fats and will soon dis- act of care and pastry shop. system, with a mighty mission: to trans- card its deep fryers. All produce will be or- GO-GETTER In 1990, at age 30, form lackluster hospital food into healthy, and love ganic when locally available, the meat and ” Tison became the Plaza’s youngest restaurant-quality fare for patients and em- poultry will be antibiotic-free, and the sh executive chef. The following year ployees alike. (Hospital nutritionists still weigh will be wild-caught. Tison also wants to ex- he catered Donald Trump’s wedding in on menu changes to meet patients’ dietary needs, and pand Lenox Hill’s white-tablecloth bistro-dining option to to Marla Maples. luxury entrees like let mignon cost extra.) other Northwell hospitals. FOOD FOR THOUGHT “I think As corporate chef and assistant vice president of sys- e master chef will have free rein in training North- of all the celebrities I cooked for; I tem food services, Tison oversees all food preparation at well’s 199 cooks. “In the past, when my cooks would do never got a thank-you. Now when I walk through a hospital room, I see Northwell’s 23 hospitals. “I always think of cooking for something wrong, I would say to them, ‘What do you a patient with joy on their face and someone as the greatest act of care and love,” he said. “I think this is, hospital food?’ ” Tison recalled with a laugh. they want to thank you for passing decided at this point in my career that I wanted to cook for “I’ve got to stop saying that, because now I’m on the by. It’s very, very rewarding.” BUCK ENNIS people who are sick.” He showed o an Instagram-worthy other side!” — PATRICK COLE 20 | CRAIN’S NEW YORK BUSINESS | MARCH 5, 2018 P020_CN_20180305.indd 20 3/2/18 2:15 PM SNAPS Honoring a champion of the arts Lincoln Center for the Performing Arts held its rst Winter Gala Feb. 13. e center bestowed its Laureate Award on Kenneth Chenault, former chairman and chief executive of American Express, for the contributions he has made to the center, the city and the arts overall. e event raised $2.6 million. Stephen Squeri, chairman and CEO of American Express Co.; Debora Spar, Pam Flaherty, vice chair of the World Resources Institute; president of Lincoln Center; and honoree Tony Coles, chairman and CEO of Yumanity erapeutics; and Kenneth Chenault, chairman and manag- Katherine Farley, Lincoln Center chair, at the party. ing director of General Catalyst, at the gala at Alice Tully Hall. Table tennis for the win On the menu: Support for kids e New York- Presbyterian Komansky Children’s Hospital raised $1.8 million at the annual Plates for Pediatrics bene t Feb. 1. Saks Fi h Ave- nue’s Tracy Margolies, chief merchant, and John Antonini, senior vice president- regional director of stores, as well Big Brothers Big Sisters of NYC’s pingpong tournament in Grand Central Terminal’s as his wife, Michelle, were Vanderbilt Hall raised more than $115,000. Kate Snow, Sunday anchor of NBC among the attendees. e Nightly News and an organization trustee; Hector Batista, CEO of the organization; retailer was a sponsor of Michael Gargiulo, anchor at WNBC New York; Bob Mankoff, a New Yorker car- the event. toonist; and Will Shortz, crossword puzzle editor of e New York Times, attended the Jan. 25 competition. Event co-chair Candice Miller, co-founder of Mama & Tata, with Dr. Vikash Modi, associate professor and chief of pediatric otolaryngology-head and neck surgery, at New York-Presbyterian Hospital Weill Cornell Medical Center, at the party at the Mandarin Oriental New York. American Express employees made up the two teams in the nal round. Among them were Ankur Wadhwa, senior product manager; Venkata Siva, manager of commercial digital acquisitions; Kunal Joshi, vice president of machine learning and cloud platforms; and Robindra Chandra, director of credit risk management. DIA DIPASUPIL/GETTY IMAGES, 4 EYES PHOTOGRAPHY/KELLIE WALSH, FRANK ROCCO DIA DIPASUPIL/GETTY SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL [email protected]. MARCH 5, 2018 | CRAIN’S NEW YORK BUSINESS | 21 P021_CN_20180305.indd 21 3/2/18 2:36 PM FOR THE RECORD* NEW IN TOWN Network’s Restaurant Stake- Forty Eight irty Seven Wake eld brokered for the ■ Rzo signed a lease for eld. e tenant represented out Willie Degel opened an Associates. tenant. 12,600 square feet at 250 W. itself. ■ Bad Seed Astoria spino of his Bay- 57th St. e music industry 585 Franklin Ave., side steakhouse. Four nights ■ Comprehensive Practice ■ e Breast Cancer Re- management rm, which ■ CBAM Partners will Brooklyn a week, the 1920s-themed Management bought a search Foundation signed a represents U2, plans to take the 25,400-square- e Crown Heights tap- neighborhood restaurant 8,285-square-foot, 5-story sublease for 13,114 square consolidate its oces in the foot, 12th-oor penthouse room specializes in hyper- with a speakeasy bar invites mixed-use building at 944 feet at 28 W. 44th St. e fall and use the entire 23rd at 51 Astor Place. e local hard cider, with more guest DJs to spin. Columbus Ave. for $4.2 nonpro t plans to move oor of the building. e investment-management than 20 varieties on tap. It’s million. e location is from 60 E. 56th St. by the company currently occupies rm plans to move from the brand’s rst location made up of nine residential end of the month. e space on the three lower a 5,992-square-foot space outside of its cidery at MOVES AND EXPANSIONS and two commercial units. asking rent for the ve-year oors. e asking rent for at 10 Hudson Yards this Wilklow Orchards in High- e retail tenants include deal was in the high $50s the 10-year deal was $74 per month. CBRE brokered the land, Ulster County. ■ Ben’s Cookies a beauty salon and a small per square foot. CBRE square foot. Empire State deal for the tenant. e de- 345 Seventh Ave. restaurant. It was unclear if brokered on behalf of the Realty Trust, the landlord, veloper, Edward J. Minsko ■ Basta e British bake shop, the buyer had a broker in subtenant. JLL represented was represented by one of its Equities, was represented by 62 E. 34th St. known for chocolate the deal. the sublandlord, own members plus a team an in-house team. e ask- Named a er the Hebrew chunks rather than chips Mediaocean. from Cushman & Wake- ing rent was not disclosed. ■ word for the long produce in its cookies, opened its ■ Lighthouse Point Market tables at outdoor markets, second store, in Midtown. signed a 15-year lease for this kosher Mediterranean 7,000 square feet at 35A restaurant in Midtown ■ Super H Mart Bay St., Staten Island. e DEALS ROUNDUP focuses on Israeli comfort 2828 Broadway fresh food market plans to TRANSACTION SIZE BUYERS/ food. e Korean grocery chain, open in the fall. Botsa- TARGET/SELLERS [IN MILLIONS] INVESTORS TRANSACTION TYPE which has stores in 12 ris Morris Realty Group ■ Jax B-B-Q states, opened its second represented the landlord, Blue Buffalo Pet Products Inc./ $8,339.8 General Mills Inc. SB M&A Artal; The Bishop family 496 Ninth Ave. Manhattan location, on the Triangle Equities. e limited partnership; The Invus Pit master Nick Accardi Upper West Side. tenant was not represented Group LLC (Manhattan); of Bone Lick Park brings by a broker in the transac- The Orca Trust wood-smoked barbecue in tion. e asking rent was Fogo de Chao Inc./Great-West $601.3 Rhone Capital LLC FB M&A a no-frills setting to Hell’s STOCK EXCHANGES not disclosed. Investors Holdco Inc.; Thomas H. (Manhattan) Kitchen. Lee Partners LP ■ Blackstone Group COMMERCIAL 1180 Sixth Ave. $305 Northwood Investors SB M&A ■ Konnect (BX-N) ■ Gay Men’s Health Crisis (Manhattan)/HNA Property Holdings LLC (Manhattan) (Group) Co. Ltd. 590 Fifth Ave. J. Tomilson Hill, chairman inked a deal to move Two Wall Street veterans of Blackstone Alternative its headquarters to a Procept Biorobotics Corp. $118 CPMG Inc.; Perceptive GCI created an indoor golf club Asset Management, sold 110,000-square-foot space Advisors LLC (Manhattan); Viking Global Investors LP in Midtown. Membership 227,636 shares of common at 307 W. 38th St. e fees start at $350 for access stock at prices ranging nonpro t, which provides Deepwater Tano Cape Three $100 Aker Energy AS SB M&A Points Block (DWT/CTP) in Ghana/ to eight simulator studios from $34.52 to $34.58 per HIV and AIDS–related Hess Corp. (Manhattan) featuring more than 200 share from Feb. 16 to Feb. care, plans to move from virtual golf courses from 21 in transactions worth 5 Manhattan West by the Kallyope Inc. (Manhattan) $66 Alexandria Venture Investments GCI LLC; Euclidean Capital LLC around the world. $7,863,994. He now holds end of July. e asking rent (Manhattan); Illumina Ventures; 2,981,110 shares. was not disclosed. Savills Lux Capital Management ■ Nap York Studley brokered the trans- (Manhattan); Polaris Partners; The Column Group LLC; Two Sigma ■ 480 Seventh Ave. L3 Technologies (LLL-N) action for the tenant. e Ventures (Manhattan) Anyone can book a snooze Board Chairman Michael landlord, George Comfort at this Midtown location. Strianese sold 39,515 shares & Sons, was represented by Glossier Inc. (Manhattan) $52 14W; Forerunner Ventures; GCI Imaginary Ventures; Index Ventures; Pods with beds are available of common stock at prices an in-house team. Individual investors; Institutional for 30 minutes to eight ranging from $210.78 to Venture Partners; Thrive Capital hours. ere’s also a co ee $214.29 per share Feb. ■ Ascot Underwriting (Manhattan) shop, a meditation room, a 20 in a transaction worth is moving its oces to a ORIC Pharmaceuticals Inc. $50 EcoR1 Capital LLC; Fidelity GCI yoga studio and a co-work- $8,374,011. He now holds 14,807-square-foot space Management & Research Co.; 55 W. 46th St. Foresite Capital Management LLC; ing space. 136,503 shares. at e KKR & Co. LP (Manhattan); Memorial global specialty insurance Sloan Kettering Cancer Center, ■ Porterhouse Brew Co. ■ BlackRock Inc. (BLK-N) underwriter plans to move endowment arm; NS Investment; OrbiMed 66 Pearl St. Advisors LLC (Manhattan); Taiho Ryan Stork, chairman and from 1 Bryant Park. e Ventures LLC; The Column Group LLC; is Dublin-based cra head of Asia Paci c, sold asking rent for the 10-year Topspin Ventures (NY); Trinitas beer brand opened its 7,136 shares of common deal was in the mid-$90s Capital Management LLC rst U.S. location, in the stock for $543.50 per share per square foot. CBRE Moovit App Global Ltd. $50 BMW i Ventures; BRM Group; GCI Financial District. e Feb. 20 in a transaction worked on behalf of the Gemini Israel Funds; Hanaco 190-seat bar and restaurant worth $3,878,416. He now tenant and the landlord, SL Venture Capital; Intel Capital; Nokia Growth Partners; Sequoia serves more than 150 kinds holds 15,135 shares. Green Realty, which was Capital Israel; Sound Ventures; of beer and more than 50 represented by an in-house Vaizra Investments (Manhattan); varieties of gin. team as well. Vintage Investment Partners REAL ESTATE Selected deals announced for the week ending Feb. 22 involving companies in metro New ■ Spyscape ■ David Peyser Sports- York. “SB M&A”: Strategic buyer M&A represents a minority or majority acquisition of exist- 928 Eighth Ave. RETAIL wear will add 14,000 ing shares of a company without the participation of a financial buyer. "FB M&M": Financial ■ buyer M&A represents a minority or majority acquisition of existing shares of a company is interactive museum Columbia Omni Corp., a square feet to its existing with the participation of a financial buyer. “GCI”: Growth capital investment represents new features Bond-themed chal- family-run art supply and 14,000-square-foot space money invested in a company for a minority stake. lenges, such as a hallway of furniture company, inked a at 4 Bryant Park. e SOURCE: CAPITALIQ laser trip wires that were deal to move its storefront, outerwear and sportswear developed by a former head oces and storage space manufacturer plans to of training at British intelli- from 14 W. 33rd St. to a occupy the entire 10th and GET* YOUR NEWS ON THE RECORD To submit company openings, moves or real estate deals, or to receive further information, gence agency MI6. 8,657-square-foot space at 12th oors of the 12-story ABOUTemail [email protected] SECTION . 48 W. 37th St. e asking building. e asking rent ■ Uncle Jack’s rent for the nine-year, for the 10-year deal was For the Record is a listing to help businesspeople in New York nd opportunities, potential new clients and updates on customers. Bankruptcy lings from the eastern and southern Meat House 11-month lease was more $68 per square foot. e districts of New York are listed alphabetically. Stock transactions are insider transactions at 36-18 Ditmars Blvd., than $1 million annually. landlord, Adams & Co., New York companies obtained from Thomson Reuters and listed by size. Real estate listings Queens Adams & Co. brokered for was represented by an in- are in order of square footage. Former host of the Food the tenant and the landlord, house team. Cushman & 22 | CRAIN’S NEW YORK BUSINESS | MARCH 5, 2018 P022_CN_20180305.indd 22 3/2/18 2:24 PM PHOTO FINISH Landmark decision ast month JPMorgan Chase CEO Jamie Dimon announced plans to demolish the rm’s headquarters at 270 Park Ave. and replace it with a L2.5 million-square-foot o ce tower. e deci- sion validated the concept behind a recent re- zoning of Midtown East: Allow developers to buy air rights from neighborhood landmarks and they will spruce up the district’s aging of- ce stock to keep pace with Hudson Yards, the World Trade Center and other, newer o ce districts. Not everyone cheered. Preservation groups quickly argued that the Union Carbide Building, as 270 Park Ave. was formerly known, was designed in the International Style by late architect Natalie de Blois and therefore should be preserved. “ is is not a dismissible building,” said Peg Breen, head of e New York Landmarks Conservan- cy, which lobbied for the tower’s protection ahead of the rezoning. e quest seems quixotic. e property was rejected by the city Landmarks Preservation Commission in 2013. And although those decisions are technically apolitical, City Hall appears to have an opinion about this deal. Deputy Mayor Alicia Glen said in a statement released jointly with JPMorgan, “It’s a true win-win-win.” — JOE ANUTA BUCK ENNIS MARCH 5, 2018 | CRAIN’S NEW YORK BUSINESS | 23 P023_CN_20180305.indd 23 3/2/18 5:26 PM STRENGTH IN NUMBERS. CBRE continues to strengthen its legacy of leadership in Manhattan deal-making. Just look at the numbers. For 21 years running we’ve held the number one spot and 2017 was no different. With 29 of the top 50 lease transactions—and more in the top 10 than any other competitor—our strong performance underscores our commitment to consistently delivering powerful outcomes for every client we serve. CN018564.indd 21 3/1/2018 2:43:40 PM