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INSIDE Council Speaker Quinn: TOP STORIES We do care Art swindle gives about lesson in reading small the fine print ® biz PAGE 2 P. 11 After turbulence, JetBlue VOL. XXVI, NO. 37 WWW.CRAINSNEWYORK.COM SEPTEMBER 13-19 2010 PRICE: $3.00 regains altitude Ackman’s PAGE 2 Stuy Town Can Maria Rodale lead family firm into bet faces the digital age? PAGE 3 key ruling The Bents try to stick it to their Billionaire who revels customers in complex fights IN THE MARKETS, PAGE 4 readies for court

For-profit colleges BY THERESA AGOVINO seek pass from U.S. when michael ashner realized this loan crackdown summer that he needed help with his PAGE 12 long-shot attempt to seize control of Manhattan’s largest apartment com- plex, Stuyvesant Town/Peter Cooper Village, he had a list of attributes his partner should possess: deep pockets, a BUSINESS LIVES keen eye for real estate, restructuring expertise—and chutzpah. “My first call was to Bill Ackman,” says Mr. Ashner, chairman of Winthrop Realty Trust. And with good reason.The 44-year- old hedge fund billionaire has made a fortune buying stakes in companies that he sees as undervalued—many be- cause of underappreciated real estate holdings—and then aggressively agi- tating for major changes to unlock their GOTHAM GIGS See KEY RULINGon Page 41 Cheesecake therapy for whatever ails you P. 45 G ANNE FISHER on connecting the inner city with investors P. 45 cocotos tom The latest G MOVERS & SHAKERS This Delta chief says he must-have: always flies coach P. 46 G GAEL GREENE goes Dutch at Vandaag P. 47 WelcometoJacobsville bike space Marc Jacobs can’t get enough Bleecker St., City’s crush of cyclists INDEX turns parking into hot NEW YORK, NEW YORK but has the street had too much of him? ______6 apartment amenity THE INSIDER ______8

VIEWPOINT ______10 er Street is attracting a different kind of attention. BY ADRIANNE PASQUARELLI BY AMANDA FUNG SMALL BUSINESS ______14 In less than a decade, Mr. Jacobs has opened six stores within a three-block radius—the most recent NEIGHBORHOOD JOURNAL ______16 designer marc jacobs, the darling of the fashion is a bookstore, selling everything from art books to when robert schupp began apart- CLASSIFIEDS ______39 world, is sure to make a splash when he shows his branded key chains, on the corner of Bleecker and ment-hunting here last month, he FOR THE RECORD ______42 spring 2011 collection tonight for New York Fash- West 11th streets. The 1,500-square-foot Book- thought a building with a children’s HOT JOBS ______45 ion Week. marc, which opened over Labor Day weekend, fur- playroom or a rooftop garden might be

EXECUTIVE MOVES ______45 But his performance on a small stretch of Bleeck- ther cements Mr. Jacobs’ domination of the neigh- nice. But what he really focused on was See JACOBSVILLE on Page 43 a different sort of amenity:enough stor- age space for his family’s four bicycles.

37 “Storage for bikes was an important

5 factor, given how much we use them,” REAL ESTATE Legal hurdles says Mr. Schupp. He and wife Nona, cleared, Columbia Univ. barrels ahead with who are moving to New York from the ELECTRONIC EDITION Netherlands, researched the bike paths its new campus; plus NY’s Top 25 REITs near 80 Metropolitan Ave., the new Pages 20-26 condo development in Williamsburg, NEWSPAPER See BICYCLES on Page 43 71486 01068 0 20100913-NEWS--0002,0003-NAT-CCI-CN_-- 9/10/2010 8:46 PM Page 1

IN BRIEF SL GREEN REALTY CORP. IS CONSIDERING RAISING RENTS FOR A SECOND TIME THIS year as leasing activity continues to improve. Steven Durels, director of leasing and property at Manhattan’s largest commercial landlord, says any hikes would likely come in the next 30 to 60 days, although it was too soon to discuss the precise amount. At the beginning of 2010, SL Green raised rents between 5% and 7% at its best locations. Now the company is considering an increase that would affect its entire 30-building portfolio, comprising roughly 22 million square feet. LAID-OFF WORKERS AT THE DEFUNCT STELLA D’ORO BISCUIT CO. BRONX BAKERY COULD get millions of dollars in back pay and benefits as a result of a decision by the National Labor Relations Board.The 2-1 ruling affirmed the June 2009 decision by an administrative law judge, which stated that Stella D’oro violated federal labor law when it refused to furnish financial statements to the union that substantiated its claims that concessions were bloomberg news needed to survive.The ruling orders Stella D’oro to fork over back pay plus interest, as well as benefits, for the two-month period after the workers offered to return to work in May 2009 and before the firm took them back in July. But JetBlue is gaining altitude it comes too late to save the bakery’s 136 jobs: The plant closed last year. Cultivating an aura of hip and fun,JetBlue would COMPANY’S STOCK AFTER A TWO-YEAR HIATUS, TENNIS WILL Forget flighty attendant. hit new cities like a party crasher, winning people HAS BEEN FLYING RETURN TO GRAND CENTRAL TERMINAL. THE over with TV screens at every leathered seat and spe- new Vanderbilt Tennis Club, in the historic Airline is generating cash cial snacks like blue potato chips. But these days, it’s HIGHER THAN station, is accepting deposits to play on its indoor not enough to be cool. JetBlue now has to work hard ITS AIRLINE court, currently under construction.The club is and expanding all over to defend its position. projected to open next September, although Delta Air Lines, the largest U.S. carrier, is deter- PEERS’ LATELY court time could become available earlier if the mined to dominate New York by spending more pace of construction permits.The club will BY HILARY POTKEWITZ than $1.2 billion expanding its terminals at JFK and JBLU charge $100 to $210 per hour for courts.
La Guardia Airport. Discount rival Southwest Air- +5.7% while most people will think of the fed-up flight lines will set up camp at Newark Liberty Interna- attendant quitting via emergency slide as the biggest tional Airport by March, and Continental Airlines BY THE NUMBERS JetBlue Airways event of the year, industry folk will and United Airlines will close their mega-merger likely focus on less tabloid-worthy drama: JetBlue’s next month, creating the world’s largest airline. Weekly shift of the city’s economy quiet takeover of East Coast airports and its nascent Against that backdrop, JetBlue has an uphill bat- push into the business travel market. tle—especially in luring business travelers,according STIMULUS, SCHMIMULUS Exports hit two- year highs in August. Jobless-benefit claims Already the largest carrier at John F.Kennedy In- to Michael Steiner, executive vice president of Ova-  came in on the low side, and the Fed says the ternational Airport,Queens-based JetBlue had been tion Corporate Travel. economy is still expanding—albeit slowly. steadily expanding at Boston Logan International “Legacy airlines have found success in business Airport all year, becoming the largest carrier there travel because they look at both what a business over the summer. It gained access to Ronald Reagan wants out of a travel program and what a road war- -10.2% 4th -63.5% Washington National Airport last March,and when rior wants when schlepping from point A to point DROP in avg. U.S. RANK in DROP in NY liquor it starts service there in November, the 10-year-old B,” Mr. Steiner says. -12% weekly gas price competitiveness license approvals from 2010 survey, after in August from JetBlue will have a presence at all three major airports Companies demand low ticket prices, negotiat- BLOOMBERG high of $2.95 Switzerland, year earlier, in the D.C. area. ed discounts, lots of schedule options, and conven- U.S. AIRLINE in May Sweden and to 35 This kind of calculated, steady approach is a big ient airports. Travelers want upgrades to a better INDEX Source: Energy Singapore Source: State Liquor departure for an airline that spent most of the decade cabin class,where they’ll find not just extra legroom Information Source: World Authority FOR SIX MONTHS ENDED SEPT. 9. Administration Economic Forum playfully disregarding traditional airline wisdom. See JETBLUE on Page 44 SOURCE: BLOOMBERG

LESS DISTRESS The decline in all types of Ch. 7 and Ch. 11 bankruptcies filed in the Southern and Eastern Districts of NY that began in the spring is still largely intact. For collectors, a hard lesson in t

the works through AXA Art Insurance,one Victims of fraudster Lawrence Salander discover of the largest companies in the rarefied that their losses may not be covered by insurance world of fine art insurance, paying about $100,000 in annual premiums. umph Apparel (formerly Danskin), is em- Mr. Salander pleaded guilty in March, BY HILARY POTKEWITZ broiled in a nasty court battle with his insur- detailing how he defrauded his clients by ance company, which recently denied his selling their paintings without informing Source: U.S. Bankruptcy Court the financial mantra “That’s what in- claim,saying he was covered for loss or dam- them and pocketing the money,among oth- ADDICTED TO NUMBERS? surance is for” may be losing its meaning. age but not for a Ponzi scheme fraud. er tactics. Since it’s not uncommon for col- GET A DAILY DOSE AT @STATSANDTHECITY Just ask the victims of fraudster Lawrence “Most insurance claims in the fine arts lectors to consign works of art to a gallery for Salander, the Upper East Side gallery own- field are for injury to the artwork—from sale, display or loan, Mr. Salander ultimate- vol. xxvi, no. 37, september 13, 2010—Crain’s New York Business (issn 8756-789x) is published weekly except for combined issues er who was sentenced last month to up to 18 transit or installation,”says Lawrence Kaye, ly had possession of hundreds of pieces. He the fourth week of June and the first week of July, the fifth week of years in prison for cheating clients and a partner at Herrick Feinstein and an expert admitted to forging titles and bill-of-sale August and the first week of September, and the third and fourth weeks of December, by Crain Communications Inc., 711 Third Ave., friends out of $120 million in fine art. in fine arts law. He is not involved in Mr. documents, which enabled him to sell the New York, NY 10017. Periodicals postage paid at New York, N.Y., Most of the collectors had insured the art Schupak’s case, but he has followed the same piece of art several times over, with and additional mailing offices. Postmaster: Send address changes to: works they purchased through Mr. Salan- events. “This is a fairly unique situation.” Crain’s New York Business, Circulation Department, 1155 Gratiot none of the “owners” being the wiser. Avenue, Detroit, MI 48207-2912. for subscriber service: Call der.But it turns out there are several ways to Mr. Schupak purchased some $42 mil- (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one year, steal a painting and—wouldn’t you know lion worth of Renaissance art through the When is a loss not a loss? $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2010 by Crain Communications Inc. it—some of them just aren’t covered. now-bankrupt Salander-O’Reilly Gal- but instead of providing a measure of jus- All rights reserved. Mr. Salander’s biggest client, merchant leries, naming his investment vehicle Re- tice, the dealer’s step-by-step admission of banker Donald Schupak, chairman of Tri- naissance Art Investors,or RAI.He insured fraud actually complicated matters for Mr.

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Election Prius and a prayer picture Maria Rodale is a year into her CEO post, and taking she couldn’t be more shape unlike the last guy Primary vote to give BY MATTHEW FLAMM answers on AG race, Tea Party strength there have been many changes at Rodale Inc. since Maria Rodale became chief executive of the family-owned health and wellness publish- BY ERIK ENGQUIST er a year ago. For one thing, the new CEO, un- like her predecessor, does not use a car service. who will be the next sheriff of “I’m a more down-to-earth person,”Ms.Ro- Wall Street? Will the Tea Party dale says when pressed on differences between claim its first scalp in New York? Are her and Steven Murphy, who had run the com- voters finally ready to dump their pany for almost a decade. “I drive a Prius and a state legislators? Will rent-regula- pickup truck.” tion activists complete their con- Chairman since 2007 and the author, most quest of the state Senate? recently, of Organic Manifesto, Ms. Rodale is Expect some answers from steeped in the publisher’s healthy living mission. Tuesday’s primary election. She is also well-liked by staffers, many of whom In the most expensive contest— grew demoralized by the constant executive the Democratic primary for attor- turnover that marked the tenure of the jet-set- ney general—five candidates have ting Mr. Murphy. spent at least $10 million combined But Ms. Rodale must find new ways to grow to succeed Andrew Cuomo, who is breakout brands like Men’s Health and the “Eat running for governor. Based on This, Not That!” franchise, and keep the com- polls, fundraising and endorse- pany as dynamic as it was under her predecessor, ments, the favorites are Manhattan who is generally credited with turning the sleepy state Sen. Eric Schneiderman and Emmaus, Pa., publisher into an industry player. Nassau County District Attorney As with other publishers, years of steady growth Kathleen Rice, but voter sentiment gave way in 2008 to steep advertising declines. is so unformed that former state In- Rodale is also a major book publisher,anoth- surance Superintendent Eric Dinal- er business that has been hurt by the recession. lo, class-action attorney Sean Cof- Observers praise Ms. Rodale’s business and fey and Assemblyman Richard editorial smarts but question whether she’s com- Brodsky are hoping for a surprise mitted to the day-to-day grind of being CEO. victory. And although the scrappy independent has out- shone giants like Time Inc. and Condé Nast Focus on turnout with its brand extensions and online businesses, some democrats theorize that it has always struggled for resources.Some won- picking Mr. Schneiderman, the der if she’d be willing to sell off cherished titles most liberal candidate in the race, or bring in partners if either became necessary would make a Democratic defeat for growth. more likely in the general election Ms. Rodale responds that she is exactly the KEEPING IT IN THE against Staten Island District At- right person for the job. FAMILY: Maria torney Dan Donovan, the Republi- “The mission isn’t something I had to learn, Rodale is confident can candidate. Heavily outnum- and that makes it a lot easier for me to determine in Rodale Inc. bered in the state, Republicans can what’s important and what’s not,” says the 48- capture elections by appealing to year-old executive, who divides her time be- unaffiliated voters and by turning

See RODALE on Page 44 neff david out their base. Conservatives’ ener- gy currently appears high, fueled by Tea Party opposition to Obama ad- ministration policies. AXA,which declined to comment on ongoing Carl Paladino expects their anger litigation, underwrote insurance policies for sev- to carry him to victory in the GOP n the art of the swindle eral collectors now pursuing million-dollar claims primary for governor over more tra- in the Salander scandal, including the Philadel- ditional Republican Rick Lazio, a Schupak and his insurance claim to recover more not to pay,” says Barry Slotnick, a partner with phia Museum of Art. former Long Island congressman. than $22 million in losses.“ ‘Loss’means acciden- Buchanan Ingersoll & Rooney, who is represent- Industry experts posit that if the insurance pol- Mr. Lazio has more support from tal loss or damage,” AXA argues in court docu- ing Mr. Schupak’s RAI in the dispute. icy specifically excluded fraud, AXA may have party officials but is being outspent ments filed last month in the Southern District of No stranger to art insurance law, Mr. Slotnick grounds to reject some of the claims. by Mr. Paladino, a western New New York. “We will pay for direct physi- represented Steve Wynn in his battle with “It’s a question of contract,”explains Mr.Kaye. York developer estimated to have cal loss to the covered property,unless the Lloyd’s of London after the casino mogul “The contract will say these [events] are excluded, earned $150 million. Mr. Paladino, loss is excluded in Section B.” $22M accidentally ripped a hole in a Picasso.Mr. and these are covered—that’s a legitimate busi- whose campaign slogan is “Mad as LOSSES In other words, read the fine print. CLAIMED Wynn claimed the mishap knocked down ness position to take. Will it succeed? That’s not hell,” planned to spend more than AXA insists the insurance policy Mr. by defrauded the painting’s value from $139 million to for me to say.” $2 million on the primary, much of Schupak took out on the paintings—all collector Donald around $85 million, but his insurance Complicating matters: In several cases, Mr. it from his own pocket. Mr. Lazio, 328 of them—listed fraud among the ex- Schupak company balked. The two parties ulti- Salander did not actually purchase pieces of art on plagued by poor fundraising, had cluded circumstances in that dreaded Sec- mately settled for undisclosed millions. his clients’ behalf, instead forging a sham bill of only $502,000 on hand as Septem- tion B. “RAI’s alleged loss is not an acciden- sale.The upshot is that RAI may not have owned ber began. tal physical loss of artwork, but a financial All part of the “routine” as many paintings as Mr. Schupak was led to be- “If Paladino wins, a lot of it would loss resulting from a breach of contract “unfortunately, insurance compa- lieve. In the exacting world of insurance law, fic- be attributed to his financial re- by Salander,” reads the court filing. nies have a routine where they take tional ownership doesn’t make the grade. sources, but it would be a clear indi- “This claim was not covered.” our checks, deposit them as pre- “Insurance companies generally don’t insure cation of an anti-establishment vote,” Translation:The policy cov- miums, and then try and fig- theoretical purchases of a painting,” says John says Vincent Montalbano, a political ers theft or damage, but not ure out how they’re not go- Cahill, a partner at law firm Lynn & Cahill, who consultant and lobbyist. business deals gone sour. ing to pay,” says Mr. is not involved in the RAI case.“They insure the Mr. Cuomo, who has $24 million “It’s just an excuse Slotnick. actual painting.”
See PRIMARYon Page 43

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It’s post time for Genting, as IN THE MARKETS DiNapoli approval expected by Aaron Elstein

state once it has all 4,500 video slot was the only bidder that had no prob- 4,500 video slot machines in place. It says it will be lem with the state’s mandatory $300 machines on way able to open the first 1,600 by April, million upfront fee, ponying up even and the remaining machines six more than required. Oh, those unbending Bents to Aqueduct at last months later.Genting even expects to complete the construction of a bridge Bumpy ride omeday, when the Encyclopedia of Wall Street Chutzpah is BY AMANDA FUNG connecting the new facility to the while this latest round of bid- finally published, it will no doubt contain a lengthy entry subway station within 18 months. ding—the fifth in nine years—has about the Bents, the father-and-son team who are now the first, long-anticipated video Drawing upon its international been deemed more transparent and S trying to stick their money-market-fund customers with the slot machines at Aqueduct Race- experience building entertainment faster than preceding rounds,it’s been track may finally burst out of the centers, Genting intends to open a a bumpy race. The previous contract bill after steering their investment company over the cliff— starting gate sometime next spring. 200-seat high-end Chinese restau- winner, Aqueduct Entertainment and nearly taking the global financial system with them—two After almost a decade of false rant, a sports bar with a 280-seat Group,which had its right to build the years ago this week. starts, Comptroller Thomas Di- racino revoked earlier this year, man- Napoli is expected to sign off on the aged to delay New York Lottery’s se- The Bents, as stu- ruled last year that the selection of Genting New York,part Genting came lection process through a lawsuit. SL dents of the 2008 finan- Bents needed court of giant Kuala Lumpur-based casi- Green Realty Corp.—which was seen cial crisis will recall, ran approval to draw no operator Genting Malaysia out of nowhere as a front-runner but was later dis- an enormous $62 bil- from a company- Berhad, to develop the run-down qualified—insisted that the Lottery lion money-market backed fund that cov- Ozone Park, Queens, racetrack by to bid in the disclose the details of Genting’s bid in fund called the Reserve ers Reserve-related Tuesday—the final state official hopes of revealing some foul play. Primary Fund, which expenses.) needed to approve the lucrative 30- latest round Most recently,some have accused “broke the buck” after The Bents can year racino contract. Mr. DiNapoli of stalling his final Lehman Brothers filed for likely afford to pay Once it is signed,Genting has 10 approval, while other published re- bankruptcy. The fund’s their own bills. A days to deliver a check for $380 mil- ports claim that he has concerns net asset value fell below 2008 prospectus lion—the promised up-front licens- over the selection of Genting.Those the sacrosanct $1 a shows that Reserve ing fee—to the state. Assuming all lounge, other buffet-style restau- concerns involve Genting’s 3% stake share because it held charged a median Bruce Bent Sr.

goes as planned, shovels could hit rants, and even a water show. The in MGM Grand Macau, which is $785 million of Lehman buck ennis management fee the ground in as little as three weeks. company said it expects to complete run by Pansy Ho,daughter of a Chi- debt that immediately equal to 0.46% of as- the restaurants, food court and nese casino mogul with alleged mob had to be written down sets, which suggests $1.5 million per day for state 2,200-space parking garage within ties. Mr. DiNapoli’s office would to zero. That is never that the Primary “i am hoping this is the final chap- one year of its contract start. not confirm these claims, but it ad- supposed to happen at Fund and other ter in a long saga,” says Assembly- Relatively unknown in the United mitted that the comptroller had an ultra-secure money- Bent-owned invest- woman Audrey Pheffer, who repre- States,Genting came out of nowhere questions for New York Lottery. market fund, so a full- ment vehicles were sents the area. “But I am not to bid in the latest round. The firm A spokeswoman for the lottery scale panic was triggered on pace to collect celebrating until we cut the ribbon.” says it did not participate in previous said it has responded to Mr. Di- throughout the financial about $400 million Genting expects to generate $1.5 rounds because it was busy with a $4.3 Napoli and hopes the contract will world, forcing the U.S. in annual fees before million per day in revenue for the billion casino project in Singapore. It be awarded next week.
government to guaran- the market crash. tee all of the $3.7 trillion And remember, the parked in money-mar- Bents have run Re- Expos Your Business Present ket funds. serve since pioneer- Way to go, Bents! In Bruce Bent II ing the money-mar- May 2009, the Securi- levinekarjean ket fund in 1971. BROOKLYN ties and Exchange Commission It isn’t clear what the Bents did sued Reserve Management Co.’s with all of their money. But we do chief executive, Bruce Bent, and his know that the younger Mr. Bent son, President Bruce Bent II, alleging bought an enormous West Village BUSINESS that they hid key information from penthouse apartment that he at- EXPO 2010 customers and board members in tempted to sell last year for $16.5 Brooklyn’s Biggest Business to Business Tradeshow the hours after the Lehman bank- million. He has since taken the ruptcy to stem a flood of redemp- apartment off the market,according tions (see “Inside the panic at Re- to Tracy Shepherd, a real estate serve Fund,” May 11, 2009). More agent at Tungsten Property. than a year later, the Bents still Despite their apparent wealth, haven’t settled the suit, even though the Bents are insisting that it’s un- the SEC rarely requires an admis- fair for them to cover their own le- sion of wrongdoing from anyone it gal expenses:“Forcing defendants to charges. In fact, the unbending continue to litigate and incur ever- Bents told a federal judge last month mounting unreimbursed defense that negotiations with the SEC costs … is manifestly unjust and have hit an impasse, and they’re highly prejudicial,” their lawyers at preparing for a civil trial. Dewey & LeBoeuf stated in a legal FREE ADMISSION Now for the chutzpah part. filing last month. As their legal costs pile up, the Christopher Clark, a lawyer for Want More Information? Scan this Bents are asking Reserve—whose the Bents, didn’t return calls. 2D-code with your Mobile Phone name was changed to Double Rock The SEC shot back earlier this Corp. after the buck-breaking deba- month with a motion urging the VIP SPONSORS SPONSORS cle—to help pay their bills. The judge to reject the Bents’request,ar- Bents claim that they are owed guing that the family should be paid $32.5 million in unpaid fund-man- no management fees until the case is agement fees accrued since Septem- resolved. “Defendants do not claim ber 2008 and seek another $13 mil- indigence,” the SEC said. “They MEDIA SPONSORS lion from their company to help simply claim the right to fund their cover legal costs. (A federal judge defense with investor money.”
in partnership with

THE NUMBER OF FORMER WALL STREET DEALMAKERS who now run major European banks: Robert Diamond, a former Morgan Stanley and Credit Suisse First Boston executive, who was appointed CEO of Barclays plc last week, will join Credit Suisse Group’s Brady Dougan, who got his 2 start in derivatives. 4 | Crain’s New York Business | September 13, 2010

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NEW YORK,NEW YORK edited by Valerie Block

Beltrán slides into restaurant business ew york mets slugger Carlos Beltrán hasn’t been much help to the hapless club this season, but he’s hoping for a home run off the field in the restaurant industry. NThe ballplayer, who recently acquired a 25% stake in popular Puerto Rican eatery Sofrito, plans to take an even bigger bite of the business in the near future. “I believe Sofrito has big potential,” says the center fielder, who wants to bring the eatery to his homeland of Puerto Rico, as well as Miami and Chicago. Mr. Beltrán says he also plans to purchase a stake in Sofrito’s sister restaurant, Sazón. Restaurateurs JR (Genaro) Morales and Jimmy Rodriguez opened Sofrito in 2006. (Mr. Rodriguez is no longer a partner.) Mr. Morales is aggressively looking for real estate to accommodate the new team’s expansion plans. Mr. Beltrán, who quickly became a regular at Sofrito’s, “has had three birthday parties at the restaurants,” says Mr. Morales. He continued his party streak Sunday when he threw a bash there to celebrate his new role, inviting his teammates and other

notables, including Jennifer Lopez and Marc Anthony. bloomberg news baubles to boats hit the city year guessing game will soon be after year. But this fall, for the first coming to an end: Hachette Book time in more than a half-century, Group will name a new publisher New York will play host to the of boutique imprint Twelve later New York Produce Show and this month, according to a Conference.The event, to be held company executive with at the Hilton New York from Nov. knowledge of the matter. In 9 to 11, will bring together local addition to solving the industry’s growers of heirloom tomatoes and biggest personnel riddle, the broccoli florets, large suppliers appointment will end speculation Sept. 11 banner such as Dole Food Co., and chefs, that the imprint will be shut grocers and other buyers. down. comes to auction “New York City used to be the Twelve has been leaderless when guernsey’s presents its center of produce meetings,” says since founder Jonathan Karp Iconic Objects auction Sept. 24, Jim Prevor, founder of Produce became publisher of Simon & among the historic items up for Business, one of the sponsors of the Schuster in early June.The grabs—including the solid-gold event. “But over the years, these imprint chalked up a remarkable watch John F. Kennedy gave his conferences drifted to less string of hits under his tenure, father for Christmas and the expensive cities.” including Christopher Maltese Falcon statuette (yes, the The Terminal Hitchens’ God Is Not Great one from the famed Humphrey Produce Cooperative and Sebastian Junger’s War, Bogart movie)—will be a 16-foot- Market at Hunts Point is and he is considered a to by-3-foot banner inscribed with played a role in bringing the ckphoto tough act to follow. phrases like “God Bless New show back to the city.The Bronx According to insiders, those York” and “United We Stand.” market, also a sponsor, is sinking approached about the job include The lines were written by $50,000 into the event and hosting Sarah Crichton, who heads an multitudes of passers-by at tours of its facility.“It’s part of our eponymous imprint at Farrar Ground Zero in the days rebranding effort to bring more Straus and Giroux and is believed immediately following the buyers to the market,” says Myra to have turned it down, and terrorist attacks of Sept. 11, Gordon, executive administrative former Simon & Schuster creating a time capsule of sorts. director of the market, which is Publisher David Rosenthal—whom At first, Guernsey’s President currently involved in tense Mr. Karp replaced. Arlan Ettinger was hesitant to sell negotiations with the city to renew Mr. Rosenthal did not respond the piece. “We didn’t want to be its expiring lease. to an email. Ms. Crichton the firm that capitalized on 9/11,” declined to comment. A Hachette he says. spokeswoman also declined to But when he learned that the Twelve publisher to comment. owner—a first-responder who be named in soon spent months working at the toxic Contributors: Lisa Fickenscher, site—was sick with lung disease a favorite publishing-industry Matthew Flamm and desperately needed the money, he decided to include it. As for placing a value on the FRITO-LAY ROLLS OUT GREEN TRUCKS banner, Mr. Ettinger refrained, FRITO-LAY NORTH AMERICA INC., a division saying: “Nothing like it has ever of PepsiCo Inc., introduced five electric sold. I don’t know if it will bring $10,000 or $50,000 or more.” trucks in New York City last week, on the way to greening its fleet nationwide. The company says one of its environmental NY Produce Show goals is “to make its delivery fleet [the seventh-largest in the United States] the returns to NYC most fuel-efficient in the country.” trade shows for everything from

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added, includes funding formulas that favor mass transit more than previous bills—a potential boon to GET YOUR SCORECARD Dems flunk THE INSIDER the cash-strapped Metropolitan THE BUSINESS COUNCIL of Transportation Authority. New York State’s first SCORECARD legislative scorecard flunked by Erik Engquist and Jeremy Smerd NAME SCORE LMDC: Last Man every Senate Democrat and passed all but one Eric Schneiderman
7% Development Corp. Republican. In one respect, José Peralta 0% though, it was tough on all when demolition of the parties. By counting two bills Ruben Diaz 8% Deutsche Bank building is finally that were approved Shirley Huntley
8% Congress’ transit completed in December, the work of unanimously over Business Lower Manhattan Development Corp. Kevin Parker 8% the Council opposition, it made will essentially be over, state officials sure that no state senator Bill Perkins 8% say. But the entity will continue to bill still stalled
got a perfect rating. One Antoine Thompson exist for a while, albeit without its 8% measure authorized the state current staff of about 40 people. Tom Duane
Department of Insurance to 9% resident Barack Obama’s push for $50 billion to fix reject health insurance Owen Johnson 90% roads and bridges comes despite his continued Cuomo’s WFP premium increases, a power Frank Padavan 58% known as “prior approval.” delaying of a six-year, $450 billion transportation dance David Valesky 25% bill, which had been advancing through the House The other bill required health insurers to cover treatment of Darrel Aubertine
25% last year. Because the president requested that state democratic gubernatorial

candidate Andrew Cuomo last week autism spectrum disorders. newscom PCongress shelve the bill, federal funding is continuing at the opened the door to running for The two bills had enough lower levels of its expired $286 billion governor on the Working Families popular support that both Democratic and Republican senators, who barely predecessor.That bill itself was Party ballot line, but only if the agree on the time of day, all voted for them. Their constituents have been insufficient, says Rep. Jerrold Nadler, party supports his agenda.That alarmed by rising insurance premiums, but at the same time, no politician would entail a substantial shift from wanted to vote against autistic children. D-Manhattan.The Bush administration the WFP’s past efforts to raise taxes Senate Democrats’ scores were dinged further because the Business had estimated in 2002 that $375 billion on the rich and oppose property tax Council included in its calculations three Democratic bills on which Senate was needed to keep America’s caps that would curb school votes were never held. (Legislative scorecards usually tabulate only actual spending. “I’m only interested in votes.) Sponsors of the three bills—to limit greenhouse gases, tighten transportation infrastructure in good repair, heading a party that has my agenda George W. Bush regulation of telecom mergers, and mandate prevailing wages for utilities’ but President did not want as a platform,” Mr. Cuomo said on street crews—got a demerit. Sen. Eric Schneiderman, D-Manhattan, who to spend more than the $256 billion reporter Fred Dicker’s radio show. sponsored all three, earned a grade of 7%, the second-lowest score in the expected from the federal gas tax, chamber. Only José Peralta, D-Queens, was lower, at 0%, having missed a ultimately compromising on Trolleys yes, chance to get on the board by being absent for an easy vote to provide low- cost power to businesses. The measure passed 59-2. $286 billion.The stalled ferries no Five senators checked in at 8%: Ruben Diaz, Shirley Huntley, Kevin $450 billion bill, Parker, Bill Perkins and Antoine Thompson. Tom Duane was at 9%. The which will grow by city transportation nine lowest scorers all represent the city—except for Mr. Thompson of Buffalo. Commissioner Janette Sadik-Khan The top-scoring senator was Owen Johnson, R-Long Island, at 90%. He about 2% when said last week that she would use a earmarks are $295,000 grant from Rep. Nydia benefited by being excused from the vote on prior approval. The lowest- bloomberg news scoring Republican was Frank Padavan of Queens at 58%, who split with GOP colleagues when he sponsored the greenhouse gas bill and voted to give service workers a prevailing wage. The highest-scoring Democrats were upstaters David Valesky and Darrel Aubertine, at 25% each, who bucked their party by not sponsoring the greenhouse gas bill and by rejecting a bill empowering any New Yorker to sue to stop development on environmental grounds.

Velázquez to study the feasibility of working.The city turned to returning streetcars to Brooklyn. gasoline-powered generators, even Meanwhile, there’s no sign that her parking a fuel truck outside its agency will spend $15 million MetroTech data center after a secured by Rep. Anthony Weiner to backup generator failed. Power build ferry infrastructure in the from the grid returned, and the gas Rockaways. “I’ve kind of given up on truck wasn’t used. “If we had come Commissioner Sadik-Khan,” Mr. up short in some way, you’d have Weiner says. “We’ve tried every heard about it,” says Department of which way to entice them to take Information Technology and $15 million.” With the DOT Telecommunications convinced that a Rockaways ferry is Commissioner Carole Post. not viable, the Queens-Brooklyn congressman may take his case higher up the chain. “Sooner or Killed in NYC, later,” he said, “my colleagues are alive elsewhere going to say,‘If the city’s not going to spend this money, we’re going to congestion pricing is sidelined pull it back.’ ” indefinitely in New York, but the idea is “gaining momentum” in Miami, Houston, Dallas and That was close Denver, according to engineering the city survived the hottest and planning firm HTNB.The July-August period in its history, Missouri-based giant notes that but for three days in July, disaster cordon pricing, as it’s often called, loomed. Municipal operations has reduced congestion by 21% and nearly shut down after electrical increased traffic speeds by 25% in a feeders powering the city’s 16-square-mile section of computer systems stopped downtown London.

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8 | Crain’s New York Business | September 13, 2010

20100913-NEWS--0010-NAT-CCI-CN_-- 9/10/2010 2:36 PM Page 1

VIEWPOINT And now, the Republicans editor in chief Rance Crain publisher, vp Jill R. Kaplan uesday’s primary election won’t servatives at the worst possible time. With unemployment radically alter the landscape of New York high and the economy desperate for investment, Mr. EDITORIAL editor Xana Antunes politics, but it presents voters with an Blakeman, an attorney, actually wants to slash spending on managing editor Glenn Coleman deputy managing editors Valerie Block, opportunity to have a more meaningful everything but national defense. Mr. DioGuardi, an Erik Ipsen election in November. Democratic voters accountant, naively argues that “red tape,” rather than lack of contributing editor Elizabeth MacBride will nominate a candidate for attorney consumer demand, is what’s stopping businesses from columnists Greg David, Alair Townsend general; we have already endorsed Eric expanding. politics editor Erik Engquist pulse editor Barbara Benson Dinallo in that five-way race. Republicans, meanwhile, will We fear that Mr. Malpass’ political philosophy warps his senior reporters Theresa Agovino, choose nominees for governor and U.S. senator. economic analysis—“exploding federal debt soon will Aaron Elstein, Lisa Fickenscher, T Matthew Flamm, Miriam Kreinin Souccar The gubernatorial battle between Rick Lazio, a former compete for the very same capital American businesses reporters Marine Cole, Amanda Fung, Daniel Massey, Adrianne Pasquarelli, Long Island congressman, and Carl Paladino, a developer need,” he warns, Hilary Potkewitz, Jeremy Smerd from western New York, has offered precious little of value. omitting the fact that art director Steven Krupinski deputy art directors Carolyn McClain, Ten years after Mr. Lazio was showered with $43 million by Lazio, Malpass corporations are sitting Daniel Mednick staff photographer Buck Ennis donors across the country to battle Hillary Clinton for the will be the most on record stockpiles of copy desk chief Wendy Zuckerman Senate, he is barely able to scrape two nickels together. cash—but his copy editor Thaddeus Rutkowski research editor Denise Southwood Desperate for attention, he has made the Islamic center pro- viable opponents understanding of assistant research editor Maia Blume posed for lower Manhattan the centerpiece of his campaign. economics is superior editorial interns Emily Laermer, come November Blaire Porter We disagree with Mr. Lazio’s opposition to the mosque to that of his www.crainsnewyork.com web editor Brian Tracey and lament his overemphasis of it. But he has a solid Republican rivals. He senior producer Elisabeth Butler Cordova understanding of New York’s real problems and some good also has more resources. producer Kira Bindrim ideas to save money and improve government efficiency— His wealth and political EDITORIAL AND ADVERTISING OFFICES unlike the irascible Mr. Paladino, whose plans to fix the state credentials—he worked in the Reagan and the first Bush 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 sound too much like a bar-stool conversation at closing time. administrations—afford him a better chance of drawing Ms. advertising: 212.210.0259 Cable craincom nyk Mainstream Republicans should rally behind Mr. Lazio Gillibrand into a real debate.The last thing New York needs Fax 212.210.0499 to ensure a credible opponent for Democratic nominee is a Wizard-of-Oz candidacy in which our junior senator Entire contents ©copyright 2010 Crain Communications Inc. All rights reserved. Andrew Cuomo. ignores her challenger and does her talking in 30-second ®CityBusiness is a registered trademark of MCP In the other statewide GOP contest, former Nassau commercials. Mr. Malpass has the wherewithal to engage Inc., used under license agreement. County legislator Bruce Blakeman, former Westchester Rep. her, and we endorse him in the Republican primary. TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. Joseph DioGuardi and former Bear Stearns chief economist Ms. Gillibrand has a primary opponent as well, but $3.00 a copy, $59.79 one year, $109.79 two years. David Malpass are competing to take on Democratic Sen. challenger Gail Goode’s out-of-the-blue bid is quixotic. It’s www.crainsnewyork.com Kirsten Gillibrand.The three Republicans’ campaigns center crucial that Ms. Gillibrand, who was appointed to her post ADVERTISING AND MARKETING advertising director Trish Henry on opposition to Washington’s spending and long-term and shielded from serious Democratic competition, face a real estate sales manager Cornelius P. Gore debt, which have become a cause célèbre among con- GOP contender of substance and doesn’t get another free ride. senior account managers Irene Bar-Am, Courtney McCombs, William E. Squitieri account executive Anthony Mowad sales manager, classified print & online John Gallagher sales coordinator, print & online CRAIN’S ONLINE POLL COMMENTS Lulé Haznedari newsletter product manager Alexis Sinclair WILL OBAMA’S $50B credit Todd J. Masura 313.446.6097 marketing director Amy Crossman TRANSPORTATION assistant marketing manager One business in the battle Sabra Harrison UPGRADE HELP THE director, audience development LIGHTS OUT FOR NIGHTCLUBS? ALWAYS GET IT IN WRITING John LaMarca ECONOMY? senior audience development manager re: the city’s “War on small business” (Aug. your article on the problems that freelancers Tarek Cotran Date of poll: Sept. 7 220 votes 9). I operate a small nightclub in Manhattan. face when trying to get paid (“Ugh: the ‘free’ in general manager, interactive We are subject to periodic “task force inspec- freelance,” Aug. 30) could have reminded Marc Minardo web developer, interactive No. The hundreds tions,” with as many as five different agencies readers of the freelancer’s two most valuable Chris O’Donnell

of billions of . 48% swooping down on us in the middle of a night collection tools: a contract and a retainer.

stimulus dollars NEW YORK PRODUCTION . while we are open. Male inspectors barge into As a freelance corporate writer, I have a one- already allocated 52% haven’t lifted the the ladies’ room. Another inspector peruses our page contract that has held me in good stead production and pre-press director book of approximately 25 permits and licenses. for a dozen years. It requires a meaningful Michael Corsi economy. Why advertising production manager waste $50 billion Woe to us if any of them have expired. payment up front and calls for time- or Suzanne Fleischman Wies more? The last time they were here, one fly was progress-based payments. If a potential client found in one bottle after a thorough search of balks at entering into the contract, then I have PUBLISHED BY CRAIN COMMUNICATIONS INC. many bottles.This resulted in a $500 fine from learned all I need to know. I don’t take on such chairman Keith E. Crain Yes. This country the Health Department and a $1,000 fine from a future deadbeat client. president Rance Crain needs road and secretary Merrilee Crain rail upgrades, the State Liquor Authority. A contract lays out not only the client’s treasurer Mary Kay Crain and the federal Currently I am waiting to hear from the Fire obligations to you but also your obligations to executive vp, operations William Morrow money will Department, which apparently did not receive the client. Lawyers ask for retainers; plumbers senior vp, group publisher Gloria Scoby help employ my notarized affidavit that we had corrected take credit card numbers before sending group vp, technology, circulation, construction manufacturing Robert C. Adams bloomberg news some minor issues on time. I just received a someone out to unclog a sink; freelancers have workers who vice president/production & need jobs. delinquency notice and face a $3,000 fine! the right to ask for money up front. manufacturing David Kamis The past two years have seen a dozen large —susan j. trammell chief information officer Paul Dalpiaz nightclubs close, and many smaller ones. I fear corporate circulation/audience development director Kathy Henry that we may not be far behind. New York’s CRAIN’S WELCOMES SUBMISSIONS to its opinion nightlife industry is being fined, zoned and pages. Send letters to [email protected]. founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: Go to harassed out of existence. Send columns of 475 words or fewer to www.crainsnewyork.com/poll to have your say. —marc glazer [email protected]. Please include the writer’s Columbus72 name, company, address and telephone number.

10 | Crain’s New York Business | September 13, 2010 20100913-NEWS--0011-NAT-CCI-CN_-- 9/10/2010 11:59 AM Page 1

OPINION City’s 3-point plan to help small biz

trial work spaces—the kind that can Second Look. This has enabled the new Business Owner’s Bill of BY CHRISTINE C. QUINN AND DIANA REYNA support a new wave of manufactur- banks to create a pool of money Rights to business owners,starting in ing businesses. specifically for small businesses that August. And we’re about to pass ad- ew york is bouncing back from the financial Help existing businesses grow and ex- have been denied credit. The loan ditional legislation that will require crisis, at least compared with the rest of the coun- pand. Working with the Depart- amounts vary but can be up to the Bloomberg administration and its try.We’re faring much better than other cities,but ment of Small Business Services, $150,000, which oftentimes can agencies to review and analyze any we’ve created training programs to mean the difference between a busi- new proposed rules to avoid unneces- our growth has come unevenly. While the eco- help minority- and women-owned ness succeeding or failing. sary burdens on business. nomic downturn is just a bad memory for some businesses grow through marketing, Get out of the way for small business- Looking ahead, the council will sectors, many of our city’s industries still struggle. And it’s vital contracts and hiring. A similar pro- es. Very often, business owners feel continue doing its part to help poten- N gram in Massachusetts saw three like they’re caught in an endless game tial new businesses get started, help that we do not neglect those who still need our assistance. out of four participants increase of “Gotcha” with city inspectors. existing businesses grow, and help One of the best ways to encourage growth on a citywide basis their sales and hire new employees. That’s why we created the Regulato- every business by cutting useless city Some problems affect both busi- ry Review Panel last year to stream- red tape.And we hope that with these is to support our small businesses. open their doors. The city has begun a nesses looking to get started and ex- line city regulation and increase pub- three rules, small businesses will not They have been hit hard by the reces- pilot program that coordinates the in- isting businesses looking to expand. lic participation in rule-making. only persevere but succeed. sion, but also have great potential to spections of different city agencies For instance, the number of New For months, we talked to busi- Because without small business- help us fight its lingering effects. needed to open a business. This will Yorkers able to secure federal small nesses from the five boroughs and es, the city would not only lose jobs; That’s why we are implementing ensure that business owners aren’t business loans has fallen by 72%. came up with 14 initiatives that the it would lose its vibrant spirit and a series of initiatives to better sup- forced to wait weeks—or even We took a look at this problem City Council and mayor are aggres- unyielding character. port our small businesses, clustered months—before they can get started. and now are working with the New sively implementing to address com- around our three “golden rules” for We’re also creating a $10 million York Business Development Corp. mon problems and help them grow. Christine C. Quinn is the speaker of the New business. fund to renovate old, unused facto- and more than a dozen banks on a Since then, the council has passed York City Council, and Diana Reyna is the Make it easier for new businesses to ries and turn them into small indus- program called Credit for Success— a bill to ensure that the city distributes council’s Small Business Committee chair.

SHOULD THE BUSH TAX CUTS BE ALLOWED TO EXPIRE? To soak or not to soak Tax hikes would hit wealthy New Yorkers business owners hard he debate over the Bush tax cuts entered high gear last week when BY MIKE ELMENDORF President Obama’s former budget director suggested extending the tax cuts for even the richest Americans for two years, only to have veryone seems to recognize that the economy is weak, unemploy- the president himself say no way the next day. The stakes for New ment is still high and we should be encouraging rather than discour- Yorkers are high. aging economic growth. Unfortunately, Congress is about to deal TThe president and most Democrats say the Bush tax cuts for the wealthy— New York a huge setback by allowing the Bush tax cuts on capital defined as families making more than $250,000 and individuals making more gains and dividends to expire, hurting the hundreds of thousands of than $200,000—are simply unfair, encourage income inequality and hurt the Esmall business owners who are just trying to stay afloat. economy because the rich save In New York City, the per- Beginning in 2011, if these tax reductions face a tax increase are those employing be- rather than spend the money they centage affected would be about are not extended, the majority of small busi- tween 20 and 250 employees, the same busi- get to keep. If people are con- twice that, according to an esti- ness owners will be hit hard by individual in- nesses that, according to U.S. Census data, cerned that raising taxes will hurt mate by the city’s Independent come tax rate increases. Think about that: employ more than 25% of the total work force. the economy, they add, the money Budget Office, or about 100,000 During the middle of the worst recession of Increasing the individual rates will mean can be reinjected through extend- people. our lifetimes, rather than taking steps to en- that business owners have less money for ed jobless benefits or more money The biggest hit here might courage economic recovery,Congress plans to business investment and job creation. We’re for food stamps and other income- come from another part of the hike taxes. not talking about buying a yacht; we’re talk- distribution schemes. Obama plan—an increase in the Allowing current capital gains and divi- ing about buying new equipment that bene- A second group, primarily levy on dividends and capital dend tax rates to expire would rob companies fits a company’s bottom line and results in moderate Democrats, say they gains to 20% from 15%. The in New York of the capital they need to make more hiring. One study found that a 5% hike agree that the wealthy should pay GREG IBO’s analysis of 2007 tax returns needed investments and create new jobs.This in individual tax rates decreases business in- more eventually but believe any DAVID put the number of New Yorkers will not only damage our state’s prospects for vestment by 10%. Raising taxes during past increase now will hurt the econo- with dividend income at more a quick economic recovery, but will actively economic difficulties has not led to growth, my.They want to delay the imple- than 700,000 and those with cap- hurt the economy. Even the Congressional and there is no reason to think that this time mentation of higher tax rates for a couple of ital gains at 400,000. Budget Office agrees, stating recently that will be different. years. Even the most liberal New York congress- “economic growth would be stronger next Few members of the New York Congres- Republicans argue that higher tax rates on men, led by the West Side’s Jerry Nadler, rec- year,unemployment would be lower next year” sional delegation represent the billionaires the wealthy will cripple economic growth be- ognize the impact that any change to the Bush if these tax cuts are extended. typically portrayed as being the sole benefici- cause it is these people who invest and drive tax cut plan will have on their constituents. So These tax increases will not fall primarily aries of the Bush tax cuts, yet the entire dele- economic growth. Since most small-business he and others have proposed indexing taxes to on the super-rich titans of Wall Street,as some gation represents many small businesses. It is people pay taxes only on their personal returns, the regional cost of living. No argument here might suggest. Instead, they will affect small vital that legislators understand that these tax the added burden will hurt successful entre- that it is very expensive to live in New York, business owners who are the lifeblood of the increases will hit small businesses especially preneurs most of all. but this posturing for the home folks isn’t go- American economy. hard, hurting the financial security of every It shouldn’t surprise anyone that New ing anywhere. According to a National Federation of In- New Yorker, not just the people who live in Yorkers will pay more than anyone else if If the Democrats are right that the rich can dependent Business survey,75% of small busi- some other district. So tell them: Maintain the president has his way, raising the top two pay, little will happen in New York. nesses are organized as pass-through entities current tax rates—stop the impending tax tax brackets to 36% from 33% and to 39.6% If the Republicans are right that higher tax- (sole proprietors, partnerships, S-corpora- hikes scheduled for the end of the year. from 36%. es will damage the economy, the biggest blow tions and such), meaning they pay taxes on Nationally, rough estimates suggest, this will be here. their business income based on the individual Mike Elmendorf is the New York state director of the would affect 2% to 3% of taxpayers. It’s time to choose a side. tax rates. Worse, the businesses most likely to National Federation of Independent Business.

September 13, 2010 | Crain’s New York Business | 11 20100913-NEWS--0012-NAT-CCI-CN_-- 9/10/2010 3:29 PM Page 1

For-profit colleges ask to be graded on the curve

tional institutions with substandard debt they cannot afford in exchange tion regulatory body in the nation Monroe College of the Bronx and Federal student aid student loan-repayment rates. for degrees and certificates they recognized to do so by the DOE. New Rochelle.“We’ve been painted would be cut from Under the proposed changes, cannot use,” Secretary of Education with the same brush.” which are expected to take effect Arne Duncan said in a statement Painted with the same brush Sandy Baum, an independent schools with poor Nov. 1, for-profit career colleges announcing the proposed new rules. “because the state itself,through higher-education consultant who loan repayment that don’t adequately prepare stu- But the for-profit institutions are the Board of Regents, takes an excep- frequently works with the Manhat- dents for “gainful employment” lobbying the state’s congressional tionally active role in ensuring the tan-based College Board, calls the would risk losing access to federal delegation,arguing that the changes quality of institutions and their pro- rules “very reasonable.” She says if BY DANIEL MASSEY student aid.The change is designed could hurt an important sector of grams, there is no basis to apply the institutions meet high standards, to protect students from taking on the New York economy.And they’re gainful-employment regulation to they won’t be affected because stu- new york’s three-dozen-plus for- unsustainable debt, and to protect trying to make the case that the rules New York colleges,”read a response to dents would graduate prepared for profit colleges have launched an ag- taxpayers from high default rates. shouldn’t apply to New York be- the DOE by the 27-member Associ- jobs that pay enough to keep up with gressive push to get the state carved “While career colleges play a vi- cause the state Board of Regents al- ation of Proprietary Colleges. loan payments. Only 45% of stu- out of a new U.S. Department of tal role in training our work force to ready applies rigorous standards be- “The new rules are about other dents need to be making progress Education regulation that would be globally competitive, some of fore accrediting higher-education areas [of the country],”says Stephen paying down debt for schools not to cut off federal student aid to educa- them are saddling students with institutions—the only state educa- Jerome, president of for-profit be impacted by the rules. “The debate has become anti or pro the for-profit sector,” she says. “Some schools in the for-profit sec- Best Bank in North America tor serve students well, but many As voted by Euromoney, July 2010 schools don’t. ” The state’s for-profit colleges ei- ther want New York to be exempt- ed from the rule or want significant changes to be made before the rule is implemented. In the memo sent to the DOE, which was copied to ECONOMISTS SAY the state’s congressional delegation, the group called on the agency to LENDING IS KEY TO ECONOMIC RECOVERY. make substantive changes to the rule, such as adding an extended WE COULDN’T AGREE MORE. transition period and modifying the loan-repayment rate so that it in- cludes students in income-based repayment, deferral or forbearance There’s been a lot of talk lately about how banks aren’t lending to consumers programs. and businesses in need. At TD Bank, we understand the critical role banks play The proposed rule should also in the overall economic recovery. In fact, since the beginning of the downturn account for differences in repay- in 2007, we have grown our lending by 20%. ment rates between low-income students receiving Pell Grants and others, the group argues. The Lending Growth since 20071 DOE, for example, lists the repay- ment rate for Monroe students at 25% 25%, but Mr. Jerome says it is at least 69% if other factors are in- Largest U.S. Banks 2 cluded. 20% TD Bank, America’s Ms. Baum says the proposed Most Convenient Bank3 rules are fair in not considering de- 20% ferrals and forbearances. “This isn’t 15% a question of default,”she says.“The question is,‘Are you making enough 10% to repay your loans?’ ” Stack up favorably 5% in its response to the DOE, the APC said New York for-profit insti- tutions stack up favorably to 0% CUNY, SUNY and independent -4% colleges when it comes to gradua- tion rates, and that should be taken -5% into account. “The whole formula, and that’s the crazy part of it, is based on loans TD Bank, America’s Most Convenient Bank, and employment,” Mr. Jerome says. “It’s not based on education and is open for business and ready to lend. graduation. We’re dealing with Stop in or call today to see what we can do for you. loans and employment in the worst recession we’ve had since 1929.” The for-profits,ranging from art and technical schools to four-year colleges, argue that they’re a signif- icant piece of the state’s economy— a contribution that could be jeop- ardized if the new rules were to take effect. Some 19 colleges participat- ed in a recent APC survey,revealing that they employ more than 6,300 people, with an annual payroll top- ping $144 million. The for-profit colleges have spent more than $135 million in NYSE:TD capital expenditures in recent years, Member FDIC. TD Bank, N.A. TD Bank Financial Group was named “Best Bank in North America” by Euromoney for the second year in a row. 1 Gross loans and leases in USD as of March 31st, 2010 compared to the group said. And unlike tax-ex- December 31st, 2007. March 31st, 2010 loan balances exclude impact of FAS 166 and FAS 167 which reclassifies certain securitized loan pools as reported loans and was implemented prospectively in calendar Q1 2010. 2 U.S. Banks with more than US$10B in assets per FDIC call report data. 3 TD Bank US Holding Company as reported in the Federal Reserve Y-9C filing. December 31st, 2007 includes Commerce Bancorp, Inc. empt, nonprofit institutions, the 19 as if pooled. For detailed credit ratings for TD Bank Financial Group and TD Bank, N.A. Visit http://www.td.com/investor/credit.jsp. TD Bank Financial Group is a trademark of The Toronto-Dominion Bank. Used proprietary colleges paid more than with permission. $25 million in taxes for 2009.

12 | Crain’s New York Business | September 13, 2010

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SMALL BUSINESS Biz need funding? Join the crowd

the stupidest decisions I ever made,” tributions.Users set their own fund- New financing sites offer creative types says Mr. Tilden, a graduate of The ing goal and deadline for reaching it; a surprising solution to the credit crunch Culinary Institute of America. “I if they don’t make it, they collect was so stubborn, I didn’t care.” nothing.The site keeps 5% of the to- selling his hearty loaves through lo- To raise money, Mr. Tilden tal raised for each successful project. BY ELAINE POFELDT cal cafes and at Brooklyn Flea. But turned to one of the new “crowd- Mr.Tilden,who started up with just sourced” funding sites that connect Bottom line atthew tilden $5,000 in personal savings, hasn’t entrepreneurs in the creative class this approach is preferable to quickly built a fol- found it easy to keep baking.He had with those interested in supporting making a deal with the investors lowing for his ar- to move to Bedford-Stuyvesant re- their projects with donations and who have come prowling around so tisanal products cently to secure affordable space. loans. Mr.Tilden chose Kickstarter, far,Mr.Tilden says.“It’s hard for me buck ennis after launching “Honestly, starting a business in a New York-based site where entre- to relate to someone who wants to ADD LEAVENING: Matthew Tilden started ScratchBread with just $5,000 in savings. MScratchBread in Brooklyn in 2009, New York with no capital was one of preneurs seek small, individual con- put a couple of thousand dollars into the business and take 20% to 50% of it.” But “the bottom line is that this business isn’t going anywhere unless I find financial support.” Unfortunately, Mr. Tilden failed to meet his $25,000 goal by the Sept. 2 deadline: He raised only $9,360, from 95 donors. Like other sites in the space, 12- employee Kickstarter suggests that users raise cash from those they know, often by tapping their Face- book and Twitter networks.“It real- ly sits on the back of social media,” says Yancey Strickler, who co- founded Kickstarter in April 2009. Other crowdsourced sites in- clude RocketHub, a New York startup that helps creative types find patrons;40billion.com,which offers a chance to secure donations as well as loans; and Invested.in, a peer-to- peer lending platform. About 7,000 projects have been featured on Kickstarter, according to Mr. Strickler. About 2,500 have garnered a total of $15 million or so. Another 2,500 did not meet their goals. The rest are still active. Bud Caddell, a strategy director at an ad agency,did well with a book campaign.His book,with the work- ing title The Bucket Brigade, is about the need to revamp organizational structures to make themmore work- er-friendly. “After the book raised $18,000, I got a few calls from liter- ary agents,” says Mr. Caddell, who has planned to self-publish. Founders of sites say supporters are often attracted by the chance to be involved in creative activity. RocketHub.com urges artists to give donors something unique. For instance, a musician looking to fund a CD project might offer backers a guitar lesson. “People will pay for that,” says co-founder Brian Meece. Not for everyday items some of the sites are discriminat- ing. “We are for creative projects,” says Mr. Strickler at Kickstarter, which requires fundraisers to sub- mit an application. “If a business is trying to pay rent, make payroll or buy a new printer, we would decline that project.” Some donors are willing to help with mundane expenses, however. Mr. Tilden recently gave $20 to a mobile food company with a bro- ken-down truck. “I knew it would help them out,” he says.

To sign up for Crain’s SMALL BUSINESS newsletter, go to www.crainsnewyork.com/smallbiz.

14 | Crain’s New York Business | September 13, 2010 CN013916 9/3/10 2:20 PM Page 1

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NEIGHBORHOOD JOURNAL Boerum Hill will survive jail’s return

Department of Correction to resur- An area once dominated by a mu- of the Atlantic Avenue Betterment In seven years since rect the 53-year-old facility, and nicipal garage, gas stations, parking Association. facility closed, area nearly as many years of on-again, lots and a few stores with inexpensive off-again protests by its Boerum antiques has filled with upmarket Up to the challenge has changed hugely Hill neighbors to prevent this. shops, restaurants and luxury resi- ms. balboza and others are con- This time, it’s different. dential towers. Trader Joe’s and Ur- vinced that the area is now estab- BY EMILY LAERMER Seven years after the last full- ban Outfitters opened just down the lished firmly enough that it can time inmate was bussed off to the avenue in 2008; a Barneys Co-Op weather the challenge of housing ometime next year, the city’s main jail on Rikers Island, will open later this month. In the the prison. Property values and the Brooklyn House of De- Boerum Hill is a vastly changed shadow of the BHD are trendy eater- flow of people to area businesses are

tention is slated to reopen. place, right down to its southern- ies such as French restaurant Jolie. expected to shrug off the return of buck ennis Its rebirth follows years of most edge: Atlantic Avenue, the lo- “It’s a different neighborhood the jail. In fact, the city is weighing SEEING IS BELIEVING: Business owner Ssporadic attempts by the cation of the 14-story, 749-bed jail. now,”says Sandy Balboza,president whether to add store space by rent- Quynh Dang isn’t sure the jail will ever reopen. ing out the jail’s ground floor. “The neighborhood isn’t about just one building,” says Faith Hope Consolo, chair of the retail leasing, marketing and sales division of Pru- Delivering results. dential Douglas Elliman. “It’s not a prime location,but the spot has been moving forward to a better place.” Leading over $15 billion in debt capital markets transactions. For retailers—including the cof- fee shops, drugstores and fast-food joints likely to lease the prison’s August 2010 August 2010 July 2010 July 2010 July 2010 ground-floor space—the facility’s rebirth may be a big plus, adding hundreds of prison employees and A portfolio company of visitors to the pedestrian traffic flow. “There will be an economic devel- opment that restaurants and retailers should take advantage of,” says Bor- $775 Million $300 Million $140 Million $1.435 Billion $405 Million ough President Marty Markowitz. Senior Secured Senior Secured Senior Unsecured Senior Secured Senior Notes Reopening the prison is appropri- Credit Facilities Credit Facilities Credit Facility Credit Facilities ate,he adds,since 26% of the city’s in- mates are from Brooklyn. It is diffi- Joint Lead Arranger & Lead Arranger & Lead Arranger & Joint Lead Arranger & cult for family to visit them at Rikers. Joint Bookrunner Administrative Agent Administrative Agent Joint Bookrunner Joint Lead Manager One surprising twist to the re- opening plan: The community’s biggest concern is not the presence July 2010 July 2010 June 2010 June 2010 June 2010 of hundreds of inmates, or the fear of increased crime. Rather, it’s the impact on the area’s limited parking. Many residents recall that when the jail was open, parking spots were taken up by police cars,Department $360 Million $500 Million $320 Million $250 Million $1.5 Billion of Correction vehicles, and employ- ees’ and visitors’ cars. Private Placement Senior Unsecured Senior Unsecured Senior Notes Senior Unsecured Senior Secured Notes Credit Facility Credit Facility Credit Facility Space invaders Joint Lead Joint Lead Arranger & Joint Lead Arranger & Joint Lead Arranger & “personal and emergency vehicles Placement Agent Joint Bookrunner Administrative Agent Lead Manager Co-Documentation Agent were parked willy-nilly around the jail,” says Robert Perris, manager of We know that successful, long-term business relationships depend upon delivering results for our clients. Leading over $15 billion Community Board 2. A spokesperson from the DOC in debt capital markets transactions by August speaks to that unwavering objective. says that the vehicles were not con- At KeyBanc Capital Markets,® more than 500 professionals leverage extensive industry knowledge, equity and debt capital nected with the prison. markets expertise, and a leading merger and acquisition advisory practice to deliver strategic solutions that help our clients Some community members are capitalize on opportunities. concerned about the jail’s appear- ance. There are mesh-covered win- Today, the markets are volatile, but at KeyBanc Capital Markets our dedication to delivering results for clients remains constant. dows that need to be replaced and coils of barbed wire atop high chain- For information on how KeyBanc Capital Markets can help you reach your business objectives, link fences—plus the prospect of the call Randy Paine, Co-Head of KeyBanc Capital Markets, at 216-689-4119, sight of shackled prisoners being Doug Preiser, Co-Head of KeyBanc Capital Markets, at 216-689-5944 or sent to the court across the street. Amy K. Carlson, EVP and Group Head, Debt Capital Markets, at 216-689-4227. To cope with some of these con- cerns, the DOC and local officials are forming a community advisory committee,designed to help address any problems as they arise. Some residents don’t anticipate additional problems, for the simple reason that they doubt that the prison will ever reopen. “People have been talking about KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., it for the past three or four years,and Member NYSE/FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A it’s still not open,” says Quynh ©2010 KeyCorp ADL1753 Dang, the owner of four-year-old Nicky’s Vietnamese Sandwiches, a block away from the jail.She oppos- es the reopening—but doubts that it will ever come to pass.

16 | Crain’s New York Business | September 13, 2010

20100913-NEWS--0018,0019-NAT-CCI-CN_-- 9/9/2010 5:26 PM Page 1 On a fast track beneath t Now under construction, the $9 billion rail-tunnel link TUBE TALK will deliver more commuters and jobs to Manhattan ON THEIR WAY from North Bergen, N.J., to midtown, the ARC tunnels will burrow more t’s an engineering marvel requiring seven years of planning and gigantic, specially built industrial than 200 feet below the Palisades and then machines that look like props left over from a sci-fi movie. It’s also currently the nation’s largest, most worm their way 100 feet below the Hudson’s expensive public-works project, a nine-mile, $8.7 billion commuter rail link connecting Manhattan’s Penn surface before terminating at a new station more than 150 feet under Manhattan. IStation to the Frank R. Lautenberg station in Secaucus, N.J. On a project of this scope, “there are Yet much of this mammoth undertaking will take place underground, out of sight. It’s literally a sunk investment. hundreds of elements and items,” says NJ Known as Access to the Region’s Core, the project includes digging the first rail tunnel under the Hudson River Transit Assistant Executive Director Arthur D. since 1910, when the original Penn Station opened. When completed in 2018, ARC will ease the overcrowding Silber, the project chief. “Developing a solution for each in a timely and cost- and delays routinely frustrating commuters who ride the New Jersey Transit system—which has seen a effective manner and reducing risks in those quadrupling of ridership over the past two decades, to more than 45 million trans-Hudson round-trips a year. decisions is a huge challenge.” Building ARC “Once you hit Lyndhurst, nine times out of 10, you have to stand,” says Torrey Gaver, a writer who regularly will create some 6,000 construction jobs. commutes by rail to Manhattan from Hawthorne, N.J. “The conductor has to dodge people and bags.” Surprisingly, engineers say they expect Relief is on the way for Gaver and thousands of other commuters. New 3.5-mile twin tubes under the few geological challenges. The diabase rock under the Palisades is a common hard Hudson—one for inbound trains, one for outbound—will double NJT’s capacity, permitting up to 340,000 daily mineral that is straightforward to bore passenger round-trips into New York City from New Jersey’s northern suburbs. through. On the New York side, sandhogs will confront layers of granite and schist, which are easily flaked. However, the maze of existing infrastructure buried under Manhattan—subways, water mains, power lines and the like—will require deft handling as workers near Penn Station. More difficult will be excavating beneath the Hudson, where care must be taken to prevent the tunnels from collapsing due to the instability of the soft silt and clay there. The finished underwater tubes will be concrete-lined to keep them stable and dry. Trickiest of all, engineers say, will be
digging nine perpendicular passageways under the Hudson to link the tubes; these will be used to evacuate the tunnels in case of an emergency. These passageways must be dug using a technique called ground freezing: Pipes are inserted into the area to be excavated, a refrigerant is piped in and, once the surrounding area is frozen, conventional mining and blasting methods are used. Washington and the Port Authority will each shoulder $3 billion of ARC’s projected price. Of the remainder, the New Jersey Turnpike Authority will kick in $1.25 billion, and New Jersey’s Congestion Mitigation A DOWN AND DIRTY BUSINESS and Air Quality EACH OF ARC’S TWIN TUBES will measure almost to a specific tunnel’s dimensions and the Improvement 25 feet in diameter. Excavating them will require conditions. rai Program will four tunnel-boring machines: giant, custom-built The TBM slated for the first phase of su contribute excavating devices that can chew through rock tunneling—running 5,200 feet eastward under $1.45 billion. at a rate of 30 to 50 feet per day. TBMs, which the Palisades—is being built by The Robbins Co. Co As is common cost $10 million to $30 million apiece, have to of Solon, Ohio (a similar unit is depicted at Civ on mega projects, be specially made, since they must be tailored right). Stretching 230 feet and powered by 10 mi not all of the funding 442-horsepower electric motors, the completed the has been secured. And machine will be tested, disassembled and of there is one wild card: the shipped to the construction site in North co looming 2011 insolvency of the Bergen, where it is expected to begin tearing No New Jersey Transportation Trust Fund, into the Palisades sometime next autumn. Ba which doles out $1.6 billion annually to fund Some 3 million cubic yards of rock and N.J the state’s road and rail needs. Some dirt will be removed during construction (about for observers worry that Washington might twice the amount removed during the building the renege on fully funding its share of ARC if of the World Trade Center complex). Fortunately, se Trenton does not agree on a credible fix to NJ Transit has the perfect place to dump it: Co the trust fund. Kearny Yard, an 80-acre railcar storage yard by un

18 | Crain’s New York Business | September 13, 2010 20100913-NEWS--0018,0019-NAT-CCI-CN_-- 9/9/2010 5:26 PM Page 2

END OF THE LINE NJ TRANSIT’S CROSS-HUDSON RIDERSHIP is h the Hudson expected to double over the next 20 years, reaching 90 million annual round-trips by 2030. The two new rail tubes will double the railroad’s rush-hour Upon completion, ARC will spark economic growth. According to a July study by the Regional Plan capacity, permitting as many as 48 trains per hour Association, the project will double the number of people living west of the Hudson who have access to a to enter Manhattan during the morning and evening 50-minute train ride into midtown. Backers claim that this will lead to the long-term creation of 44,000 peaks. jobs in the city, by improving mobility across the region. To accommodate the additional riders, a new rail terminal will be built two blocks north of Penn “ARC is an extremely important regional passenger transportation project,” says Rep. Jerrold Nadler, Station exclusively for NJT trains. Approximately 15 D-Manhattan, a longtime transit advocate. “It will help spur thousands of stories under 34th Street, the six-track, three-level jobs and economic development in the Moynihan Station/Hudson Penn Station Expansion will stretch some 2,500 Yards area.” feet from Sixth to Eighth avenues, offering direct connections to the IND and IRT subways. Groundbreaking for ARC took place during the Commuters will access Penn Station and Amtrak summer of 2009 along Tonnelle Avenue in North connections via a subterranean walkway. Bergen, N.J.There, crews are working on an Officials are unsure when excavation for the underpass where the rail tunnel will burrow into the new station will commence, but the shovel work is supposed to be done by Palisades, near the existing Amtrak tunnel.The 2015. Manhattan phase of construction is expected to Some observers have severely start next year.The Port Authority of New York criticized the plan, calling ARC “the and New Jersey is co-managing the project tunnel to Macy’s basement,” with NJT. because it provides no direct rail access to the existing Penn Station, —carl gaines the planned Moynihan Station or the East Side. Originally conceived as a way to forge the commuter lines serving New Jersey and Long Island into a true regional rail network, ARC was substantially revised for political, environmental and practical reasons, all of which meant its rails would be placed too deep to safely enter Penn Station. “We’re one of the original boosters of ARC, but the current project doesn’t meet the [original] objectives,” says Jeff Tittel, director of the New Jersey Sierra Club. “Now it’s a gigantic waste of money. It’s not going to meet the region’s needs.” Mina Mann’s concerns are more personal: Hers is one of the roughly 100 New York businesses that will be displaced by ARC construction. (Four New Jersey businesses are also affected.) For Ms. Mann, the first sign of trouble came last fall. She had moved her three-person business, which designs evening wraps and scarves, to West
34th Street from Brooklyn to be near the fashion district. But in October, she was told that she’d have to move again: Her building faces demolition to
make way for an entrance to the new station.
Ms. Mann, who has met with the ARC relocation specialist, wants to stay in the neighborhood. Her lease was up last month, and she’ll have to make a decision soon. otto steininger “I have asked to go month-to-month,” she says. “But I’m not waiting around—I’m looking.”

the Hackensack River. It will be used to raise the railroad yard some 20 feet above the surrounding flood plain. er A joint venture of Schiavone Construction o. Co., J.F. Shea Construction and Skanska USA Civil has received a contract totaling $259 million for the final design and construction of ed the Palisades tunnel; Ferreira Construction Co. of Branchburg, N.J., received $13.6 million to construct the Tonnelle Avenue underpass in North Bergen. In addition, a joint venture of Barnard Construction Co. of Pompton Plains, N.J., and Judlau Contracting Inc. is awaiting ut formal approval of its $583 million bid to build the 5,700-foot-long Manhattan tunnel y, segments; that work is to commence in 2014. Contracts for the 7,400-foot tunnel sections BIG WHITE ROCK-EATER: A tunnel-boring machine; the rotating business end (left) is covered with cutting discs that fracture and chip away the rock face. by underneath the Hudson have not yet been set. photos: co. the robbins

September 13, 2010 | Crain’s New York Business | 19 20100913-NEWS--0020,0021-NAT-CCI-CN_-- 9/9/2010 4:41 PM Page 1

REAL ESTATE

Columbia leaps legal hurdles to push growth Behind schedule but at last moving ahead smartly, university lays foundation for future

BY ANDREW MARKS

note of impatience frequently creeps into the voice of Columbia University President Lee Bollinger when he talks about the university’s vast planned Manhattanville campus. When it’s finished, sometime around 2030, the $6.3 billion expansion project will boast 16 buildings housing research

facilities, classrooms and dorms on a 17-acre parcel stretching bloomberg news from Broadway to 12th Avenue, and from East 125th to East LEE BOLLINGER: Columbia’s 133rd streets. But getting to that point is proving difficult. head sees new Manhattanville campus as providing space A“We certainly weren’t anticipating so many challenges,” Mr. Bollinger says, essential to innovation. referring to a multiplicity of political and legal wrangles since the plan was formally announced in 2004. “I didn’t think it would take quite this long.” THE PLAN Although the school has yet to officially revise the target date of 2015 for TIMING 2010 to 2030 finishing the campus’s four-building first phase, Mr. Bollinger concedes that it COST $6.3 billion could take until 2020. SCOPE 16 buildings However,Columbia has put the to do it,” Mr. Bollinger says. Manhattanville. totaling 8M square feet, pedal to the metal on expediting True,as recently as August,U.S. Bovis currently with a 2M-square-foot Manhattanville since the New News & World Report ranked the has 45 workers on below-ground supply/dis- York State Court of Appeals ruled university fourth-best in the coun- the site. By year’s tribution center on June 24 in favor of the state’s try—up from eighth place last end, it will have KEY PHASE I ADDITIONS/ right to invoke eminent domain to year—but its research funding has nearly 100. SIZE/COMPLETION DATE seize property on Columbia’s be- tumbled. For example, while Co- “When we’re in  Jerome L. Greene half. The school expects to break lumbia ranked fifth in grant dollars full swing, we’ll be ground on the first building, the received from the National Insti- employing an aver- Science Center/362,700 362,700-square-foot Jerome L. tutes of Health in the early 1990s, age of 1,200 work- sq. ft./2015 Greene Science Center, this fall. it ranked 14th last year. ers on the site,”says  Business “This expansion is vital to Co- Joseph Ienuso, ex- School/TBD/2020 Closely cropped Ivy lumbia’s mission, and we were de- ecutive vice presi- services, like build- billion in its current capital  School of the “columbia is moving forward,” termined not to let the roadblocks dent of facilities at ing a slurry wall fundraising campaign, some of Arts/TBD/2020 says Robert Kasdin, the school’s in our way keep us from moving Columbia. around the site’s which will go toward the 6.8 mil- senior executive vice president over- ahead with it,” says Mr. Kasdin. The foundation perimeter—have lion-square-foot Manhattanville seeing the plan’s development and Instead, the university pressed work alone is expected to take at tumbled anywhere from 10% to campus. The school will clearly execution. ahead even as it awaited the verdict least 18 months, about double the 40% since 2007. need more, especially since stock With about 100 square feet of on the eminent-domain lawsuit. norm owing to the site’s high water Just 15 months ago, the school market losses lopped about 16% interior space per student—the By last fall, Bovis Lend Lease, the table and Columbia’s desire to cre- had three bidders to build the ini- from its estimated $7 billion en- smallest among Ivy League schools Phase I construction manager, had ate a four-story underground dis- tial 1,200-foot section of slurry dowment in 2008. and less than half that of the next- begun hazardous-waste remedia- tribution and delivery center. wall.Now it has half a dozen.There Columbia intends to fund con- worst, Harvard University—Co- tion on the site that Columbia has are five bidders for the contract to struction through an unspecified lumbia has been short of space for earmarked for the campus’s first A material blessing put up the Science Center’s glass combination of donations, debt of- decades. Addressing that need was building. Demolition of the first of the good news for Columbia: curtain wall, up from two last year. ferings and cash from ongoing op- one of Mr. Bollinger’s mandates 20 buildings began in January, de- The delays have literally paid off. “We expect to get value on those erations.“I can tell you we still have when he came on board in 2002. spite a lower-court ruling the pre- Construction costs—from those bids,” says Mr. Ienuso. a ways to go, but have raised signif- “People have a hard time inno- vious month denying the state’s for raw materials, like steel and It’s important that Columbia do icant amounts for the project,” says vating if there’s no space in which right to declare eminent domain in concrete, to those for construction so.The school has raised about $3.5 Mr. Bollinger.

20 | Crain’s New York Business | September 13, 2010 20100913-NEWS--0020,0021-NAT-CCI-CN_-- 9/9/2010 4:42 PM Page 2

INSIDE Promises, promises Landlords keep doling out tenant concessions PAGE 23 Deals Plus The latest local transactions, and more PAGE 24 Largest REITs in the New York area PAGE 25

OTHER SCHOOLS THINKING BIG Fordham ordham University’s Lincoln Center FCampus was de- signed for 3,500 students. Nearly half a century after it opened, it has more than double that number: 8,000 students.The need for more space has long been clear, but efforts to build it have run afoul of legal actions brought by some of Ford- ham’s neighbors. In August, however, a New York Supreme Court judge threw out a suit lodged by the board of a nearby con- do tower. While an appeal is likely, a spokesman for Bronx-based Fordham says the school is pressing ahead THE PLAN with its plans.The school has TIMING 2010 to 2032 yet to announce a start date for execution of a master plan COST $1.6 billion that it unveiled back in 2004. SCOPE Six new buildings totaling 1.5 “No property needs to be million square feet for student housing acquired,” the spokesman and classrooms says. “The development is taking place entirely within KEY ADDITIONS/SIZE/COMPLETION DATE the current campus foot-
New law school/100,000 sq. ft./n.a. print.”
Graduate School of Business and Funding the construction dorm/TBD/n.a. under the $1.6 billion plan is another matter. The school
Two luxury private residential high- hopes to finance the expan- rises/700,000 sq. ft./n.a. sion at least in part by selling two vacant lots on Amster- dam Avenue, totaling 20,200 square feet, to a developer who would build luxury residential towers on them. But it has yet to reach an agreement with a developer or reveal how much money is already in hand for the project. New York University s much as we might like to, we can’t go buy up an entire neighbor- hood when we feel pressed for space,” says Lori Mazor, New York AUniversity’s associate vice president for campus planning and design, contrasting her school’s 6 million-square-foot scattered-site expansion plan with Columbia University’s Manhattanville expansion. NYU has thus far acquired 770,000 square feet of space for the expan- See OTHER SCHOOLS on Page 22 buck ennis

its intentions before buying up all the land there. design needs “some evolution.” He image than in integrating itself into the THE OUTSIDE VIEW Property records show that Columbia paid cautions that a master plan is area. Those suspicions have faded. COLUMBIA’S PLAN to erect its gleaming glass dearly for land for which there had been little “only a general outline.” “We’re ready to turn the page with campus in the midst of one of Manhattan’s demand for years. In 2009, the school paid an Columbia originally hoped to Columbia,” says Larry English, incoming seediest neighborhoods has been attacked not average of $400 per square foot, and as much have Mr. Piano design the first three chairman of Community Board 9, which just by neighborhood landowners fighting to as $556, for four parcels. That compares with campus buildings, but last year, rejected the master plan in 2006. hold on to their properties, but also by others an average of $245 for local commercial space, Columbia’s Business School quietly He cites Columbia’s pledge to share across the city. says Massey Knakal Realty Services’ began its own search for an its plans openly with the community Developer Donald Trump (right), Shimon Shkury. architect for its new Manhattanville home, and its agreement to provide $76 million in whose Riverside South development The master plan for the campus, whose construction is slated to follow that of the direct community benefits. The school has on the Hudson was one of the first which was drawn up by acclaimed Science Center. committed to hire and train local workers, and sites Columbia considered for its architect Renzo Piano (right), has As the larger project has changed, so has to award 35% of its construction contracts to new campus, has belittled the drawn some criticism for being bland the community’s position on it. Originally, local minority- and women-owned firms. choice of locales and questioned and corporate. New York architect Gene leaders suspected that Columbia was more “They’ve shown a willingness to work with the school’s wisdom in telegraphing Kaufman is a fan, but insists that the interested in remaking West Harlem in its own us and address our concerns,” Mr. English says.

September 13, 2010 | Crain’s New York Business | 21 20100913-NEWS--0022-NAT-CCI-CN_-- 9/9/2010 4:43 PM Page 1

REPORT

OTHER SCHOOLS THINKING BIG

Continued from Page 21 sion, but with limited oppor- THE PLAN tunities to buy more land in its historic Greenwich Vil- TIMING 2006 to 2031 lage environs,the university is COST Over $6 billion instead spreading its expan- SCOPE sion among three areas in ad- 6 million square feet of dition to the Village: the East classrooms, dorms, theaters and 30s, near the NYU Langone research facilities, with half in Greenwich Medical Center; downtown Village, and the other half split between Brooklyn, at its Polytechnic the East Side Health Corridor, Polytechnic Institute location; and Gov- Institute in Brooklyn and Governors Island WHY CASSIDY TURLEY? REAL MARKET KNOWLEDGE. ernors Island. KEY ADDITIONS/SIZE/COMPLETION DATE Many of the blanks in REAL CONNECTIONS.  38-story tower for faculty housing and NYU’s expansion plan have a hotel for university functions at Silver yet to be filled in.Much of the Towers complex on Bleecker REAL PASSION. development depends on Street/270,000 sq. ft./TBD pending city approvals, espe- REAL RESULTS. cially the acceptance of the  Tisch School of the Arts building at Governors Island plan,which Lafayette and East Fourth We are a national team of dedicated commercial real estate professionals with a history of 100 years of successful client one school official says is “a streets/120,000 sq. ft./2020 relationships which include $13 billion in 2009 transactions, 420 million square feet of managed space and 25,000 long ways off.” Corporate Services locations. Our world-class expertise enables us to deliver integrated, tailored solutions around the globe. Our knowledge of local markets and deep industry connections allow us to achieve superior results. We are advocates for our clients and passionate about their long-term success. We are Cassidy Turley.

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CUNY THE PLAN he city university of New York’s growth TIMING 2006 to 2016 Tplans are set apart from COST $2 billion those of its peers by how far SCOPE Build or redevelop 14 buildings, along they are.Ground has al- adding at least 2.4 million square feet ready been broken for 11 of across several campuses the 14 buildings in CUNY’s

$3.4 billion expansion, which KEY ADDITIONS/SIZE/COMPLETION DATE

is spread among several of its  City College Advanced Science &

colleges in four boroughs. Research Center/400,000 sq. ft./2013 “ Fully $2 billion of that has ei-

ther been spent already or is  John Jay College Building, housing science research labs, classrooms and “ already funded, leaving $1.4 billion for the cash-strapped faculty offices/625,000 sq. ft./2011 state to fund.  Brooklyn College Science Our office property enhances “I’m keeping my fingers Facility/180,000 sq. ft./TBD crossed,” says Iris Weinshall, our intellectual property. CUNY’s vice chancellor for facilities planning, construction and management. “These projects were a long time in planning, and if CUNY is going to compete on cutting-edge science research, we need to have the labs.” The problem is finding the money to pay for it all, especially in light of the state’s stressed-out finances. CUNY is spending $619 million this year, but the state has cut its allocation for 2011 to only $420 million. Beyond that, all bets are off.
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22 | Crain’s New York Business | September 13, 2010 20100913-NEWS--0023-NAT-CCI-CN_-- 9/9/2010 4:44 PM Page 1

REPORT COMMAND COMPLEX Landlords can’t COMPOSED COACH COGNIZANT yet cut back their COLLABORATIVE CONTEMPORARY tenant incentives COUNSEL COZEN CONFIDENCE In slow market, rent COURAGE O’CONNOR deals, build-outs are CELEBRATES down but not out COLLEAGUE BY ALEC APPELBAUM COMMUNICATOR Geoffrey Ferrer, Corporate / Trial Lawyer

andres blank finds much to like in the city’s current real estate market. Indeed, what’s not to like? This spring, the chief operating Whether you need an unrivaled trial lawyer or corporate officer of Pixable, a fledgling 15- counsel who understands your business, our attorneys employee firm that enables users to have the training and fl exibility to help you win. create photo books from their on- line accounts, got a deal he could For worldwide offi ces, visit us at cozen.com. buck ennis scarcely believe, much less refuse. PICTURE-PERFECT: Pixable’s Andres Blank Trinity Real Estate offered him got “amazing space” at a discounted price. 2,700 square feet at 137 Varick St. Abby M. Wenzel, Offi ce Managing Partner for a mere $20 per square foot, 25% 277 Park Avenue below the asking rent. of free rent and build-outs of up to New York, New York 10177 “It’s amazing space,” says Mr. $64 a square foot.Tellingly, another 212.883.4997 | [email protected] Blank. “And we got it for a fraction landlord snatched the tenant away Geoffrey D. Ferrer, Offi ce Managing Partner of what we would normally pay.” with an offer of a $70-per-square- 16th Floor, 45 Broadway As a sluggish economy continues foot build-out, a tune-up of the New York, New York 10006 to dampen demand for office space, building’s core mechanical systems 212.908.1201 | [email protected] landlords are discovering—some- and a rent-free period of 11 months. 550 Lawyers | 24 Offi ces times painfully—that it’s too early The Moinian Group—owner of 3 to abandon all those costly conces- Columbus Circle and 180 Maiden sions they used to woo tenants in the Lane, among other properties—is darkest days of the recession. Some one landlord that’s trying to wean ten- The confi dence to proceed.

are still providing rent holidays of a ants off of rich concession packages. ® year or more. Others continue the “We’re offering 35% to 40% less © 2010 Cozen O’Connor name-your-price policy toward than what we were giving last year,” funding tenants’ office build-outs. says Gabriel Dagan, Moinian’s di- And many are simply reducing ask- rector of commercial operations. ing prices readily, or offering leases “The dollar amount in tenant im- of as short as two years. provements has gone down because “It’s still a good time to be a ten- midtown supply has tightened up a ant,” says Howard Nottingham, an little bit.” During these turbulent times in sides in all branches of government executive managing director with the financial and real estate markets, to provide solutions to the most Studley, who notes that it will take Wild and crazy no more “a significant uptick in finance jobs” mr. dagan notes that a year ago, how your firm responds to the difficult problems. to change that. tenants demanded “outlandish” challenge of changing government PLA’s team of seasoned profession- Overall, the difference between landlord-funded build-outs of as and political landscapes can make als stands ready to navigate the this year and last year is one of de- much as $120 per square foot.These all the difference. grees.There are still a lot of desper- days, he finds that tenants are will- terrain for you, bring your message ate landlords out there who need ing to settle for $40 to $50 per square At Patricia Lynch Associates, we to the key decision makers and nail every lease they can grab, but there foot, “or maybe slightly more.” take change in stride and help our that elusive deal. are fewer of them now.As a result of Industry insiders say that down- clients meet those challenges tighter supply—especially in the town landlords are still willing to For the past ten years, corporate head on. very best of buildings—many own- make the best deals—a function of America has turned to PLA for ers are cautiously cutting back their the higher vacancy rates in their incentive packages, hoping that neighborhood. According to New- We have built an international trusted advice and optimal results. they will not be undercut by a hun- mark Knight Frank, total office government relations and media Now, let us help you succeed in a grier owner down the avenue. space available for lease or sublease affairs firm that can work with all continually changing environment. at the end of the second quarter ex- Resetting the standard ceeded 15% downtown, compared “a year ago, building to suit with with 14% in midtown and less than a year’s free rent was what any land- 13% in midtown south. lord had to do to get a deal done,” “We are not doing anything out- says Paul Myers, an executive vice landish in midtown,” says Mr. Da- president with CB Richard Ellis. gan.“Downtown, it may be a differ- “Fast-forward a year, and that is not ent story.” as widespread.” All across town, meanwhile, Last year, for example, he found landlords have one thing they can all Government Affairs • Media Relations 20,000 square feet for a client in a be thankful for:a steep decline in the Class A midtown tower.The owner amount of deeply discounted space BRAT 1 Pennsylvania Plaza LE I N E G offered to customize the space at a that’s on the market for subleasing. C Suite 1909 value of around $70 per square foot, “The nicer sublease stuff is New York, NY 10119 and also threw in a year’s free rent. gone,” says CBRE’s Mr. Myers. 10 212.742.2680 This year, Mr. Myers says, the “What is available to sublease gen- Y E A R S owner of the same building offered a erally has awkward layouts or other www.plynchassociates.com well-known financial firm 10 months major drawbacks.”
albany buffalo new york city panama city, panama 20100913-NEWS--0024-NAT-CCI-CN_-- 9/9/2010 6:57 PM Page 1

REPORT REAL ESTATE

The asking rent well-known gift-bas- Deals Plus for the fifth-floor MIXED ket purveyor will have deal was roughly $43 PICTURE its own temporary a square foot. The shop in the Flatiron deal extends for 14 Midtown Class A district starting Sept. Loan delinquencies soar years, so it is set to ex- 15. office space as of pire along with the August 2010 Harry & David bought buildings with rent-regulated relations firm,” has been hiring em- company’s other leas- signed a four-month Stuy Town accounts units hoping to bring them up to mar- ployees in its New York office and, es. Edelman plans to lease for 155 Fifth Ave., for most of damage; ket rates—a strategy that came un- as a result,it is adding 27,000 square move into the space just above West 21st stuck with disastrous consequences feet to the space it leases at 250 Hud- next April. 11.9% Street. The space in- city fares better during the recession. Overall,howev- son St. That brings the firm’s total Edelman was rep- Vacancy rate, down from cludes 4,500 square er,New York City is faring much bet- there to about 168,000 square feet. resented by Mary 13.5% one year earlier feet on the ground than nation as whole ter than the rest of the country. Most recently, Edelman leased the Ann Tighe, chief floor, a 4,800-square- Nationwide, 8.15% of commer- entire fifth floor of the building be- executive for the foot basement and a mere five mortgages cial loans were behind last month, tween Broome and Dominick New York tristate re- 2,100-square-foot accounted for 90% of up from 3.1% a year earlier. streets. But in the past couple of gion of CB Richard $65.05 mezzanine. Ground- Average asking rent, down the exponential in- “We have a more diverse econo- months, it also leased about 14,000 Ellis, and her col- 5.4% from one year earlier floor asking rent for a crease in commercial my than other places,” Mr. Mancu- square feet on the 10th floor. league Ken Meyer- long-term lease at loan delinquencies in so says. Those expansions come only son. Resnick was rep- Source: Cassidy Turley this site would be ANew York City over the past year. —theresa agovino about a year after the PR giant moved resented in-house by around $250 a square And four of them, including the $3 into the building, originally leasing Mr. Brady and Jon- foot. billion mortgage on Stuyvesant about 127,000 square feet,according athan Dean, managing director of “Their things are specially Town/Peter Cooper Village, were to Dennis Brady,executive managing leasing. geared toward holiday time,” ex- on residential properties. director for leasing at Jack Resnick —theresa agovino plains Robin Abrams, the Lansco As of last month, nearly 7% of com- & Sons, the building’s owner. Corp.broker who represented land- mercial real estate loans were delinquent In the past year, Edelman has in- lord Eretz Group Inc. along with for more than 60 days. That’s over creased the number of employees in Harry & David hit colleague Lisa Rosenthal. They 10 times the 0.65% of a year earlier, its New York office by 30%, to 596 NY for the holidays were assisted in negotiations by according to Trepp, which tracks as of Sept. 1, says Robin Callif, the Melissa Rose, the in-house repre- real estate debt.Without Stuyvesant Edelman’s lid: Roof garden at NYC office firm’s local chief of staff. new yorkers sentative for Eretz.Ms.Abrams says Town, the delinquency rate falls to Ms. Callif says Edelman loves won’t have to this is something Harry & David 2.6%. Good PR pays off its year-old digs, noting that the pick up the has never done before in New York. “Most of our problem has been for 250 Hudson St. huge windows bring in great light phone or go on- The retailer has four permanent centered in the multifamily sector,” and offer amazing views. Plus, she line to order hol- stores throughout the state. says Paul Mancuso,vice president of business is good at Edelman. The says, “The location is great. There iday gifts from Newmark Knight Frank Retail Trepp. company, which bills itself as “the are a lot of media companies down Harry & David represented Harry & David. That’s because many investors world’s largest independent public here, and there’s lots going on.” this year. The —adrianne pasquarelli

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24 | Crain’s New York Business | September 13, 2010 20100913-NEWS--0025-NAT-CCI-CN_-- 9/9/2010 9:08 PM Page 1

REPORT REAL ESTATE NY’s Largest Real Estate Investment Trusts Ranked by total square footage owned in the New York area

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Continued

September 13, 2010 | Crain’s New York Business | 25 20100913-NEWS--0026-NAT-CCI-CN_-- 9/9/2010 9:04 PM Page 1

REPORT REAL ESTATE

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26 | Crain’s New York Business | September 13, 2010

nb37p39-40cl.qxp 9/10/10 12:16 PM Page 39

REAL PUBLIC & LEGAL NOTICES ESTATE Notice of Qualification of COHESIVE Notice of Qualification of APOLLO Notice of Qualification of NCM SRLP Notice of Qualification of CenturyTel CAPITAL (GP), L.P. Authority filed CREDIT MANAGEMENT II, L.P. 2010-1, LLC. Authority filed with Long Distance, LLC. Authority filed OFFICE SPACE with Secy. of State of NY (SSNY) on Authority filed with Secy. of State of Secy. of State of NY (SSNY) on with NY Dept. of State on 6/14/10. 07/21/10. Office location: NY NY (SSNY) on 07/30/10. Office loca- 07/14/10. Office location: NY County. Office location: NY County. LLC County. LP formed in Delaware (DE) tion: NY County. LP formed in LLC formed in Delaware (DE) on formed in LA on 1/14/02. NY Sec. of Wall Street on 07/06/10. Princ. office of LP: c/o Delaware (DE) on 06/29/10. Princ. 04/27/10. Princ. office of LLC: 9 W. State designated as agent of LLC Boutique Law Firm in Class A space on Cohesive Capital Partners, 650 5th office of LP: Attn: John J. Suydam, 9 57th St., 15th Fl., NY, NY 10019. upon whom process against it may Wall Street with federal and state Ave., 31st Fl., NY, NY 10019. SSNY W. 57th St., 43rd Fl., NY, NY 10019. SSNY designated as agent of LLC be served and shall mail process to: commercial litigation and related designated as agent of LP upon SSNY designated as agent of LP upon whom process against it may c/o CT Corporation System, 111 whom process against it may be upon whom process against it may be served. SSNY shall mail process 8th Ave., NY, NY 10011, regd. agent bankruptcy practice seeks comparable served. SSNY shall mail process to be served. SSNY shall mail process to c/o Corporation Service Co. upon whom process may be firm of highly credentialed attorneys the LP at the addr. of its princ. office. to the LP at the addr. of its princ. (CSC), 80 State St., Albany, NY served. LA and principal business having at least a $ 1 million, compatible, Name and addr. of each general office. Name and addr. of each gen- 12207-2543. DE addr. of LLC: c/o addr.: 100 CenturyLink Dr., Monroe, low cost income book of business partner are available from SSNY. DE eral partner are available from SSNY. CSC, 2711 Centerville Rd., Ste. 400, LA 71203. Arts. of Org. filed with LA for potential expansion in collegial addr. of LP: c/o Corporation Service DE addr. of LP: c/o Corporation Wilmington, DE 19808. Arts. of Org. Sec. of State, 8585 Archives Ave., environment; Opportunities beginning Co., 2711 Centerville Rd., Wilmington, Service Co., 2711 Centerville Rd., filed with The Secy. of State of DE, Baton Rouge, LA 70809. Purpose: with counsel and referral arrangements DE 19808. Arts. of Org. filed with Ste. 400, Wilmington, New Castle Dept. of State, Div. of Corps., 410 all lawful purposes. Secy. of State of DE, Dept. of State, Cnty., DE 19808. Arts. of Org. filed Federal St., Dover, DE 19901. and space sharing. Contact managing Div. of Corps., John Townsend with The Secy. of State of the State Purpose: Any lawful activity. partner at [email protected]; NOTICE OF FORMATION OF Pay and principals only. Bldg., Dover, DE 19901. Purpose: of DE, Dept. of State, Div. of Corps., Clean LLC. Arts. of Org. filed with Any lawful activity. John Townsend Bldg., Dover, DE Notice of Formation of Remedy Secy. of State of NY (SSNY) on 3/4/10. 19901. Purpose: Any lawful activity. Hospitality Group LLC. Arts. of Org. Office location: New York County. Notice of Formation of Chop’t 1285 filed with NY Dept. of State on SSNY designated as agent of LLC Sixth LLC. Arts of Org. filed with Notice of Formation of Carmen NY 8/2/10. Office location: NY County. upon whom process against it may PUBLIC & Secy. Of State of NY (SSNY) on LLC. Art. of Org. filed with Secy. of Sec. of State designated as agent of be served. SSNY shall mail process 7/20/10. Office location: NY County. State of NY (SSNY) on 05/13/2010. LLC upon whom process against it to: 1011 Beverley Road Brooklyn, NY LEGAL NOTICES SSNY designated as agent of LLC Office location: NY Co. SSNY desig- may be served and shall mail 11218. Purpose: any lawful activity. upon whom process against it may be nated as agent of LLC upon whom process to the principal business served. SSNY shall mail process to: process against it may be served. Notice of Qualification of Spring addr.: 350 William St., Scotch Plains, Notice of Formation of G&S SOLAR the LLC, c/o Chopt, Attn: President, SSNY shall mail process to the LLC, Studios New York, LLC. Authority NJ 07076. Attn: John J. Roder, Jr. INSTALLERS LLC. Arts. of Org. filed 853 Broadway, Suite 606, NY, NY c/o Michael Goodman, 125 Jericho filed with NY Dept. of State on Purpose: any lawful activity. with Secy. of State of NY (SSNY) on 10003. Purpose: any lawful activity. Turnpike, Ste. 300, Jericho, NY 11753. 8/9/10. Office location: NY County. 01/15/10. Office location: NY Purpose: any lawful act or activity. Princ. bus. addr.: 50 Varick St., NY, CC REALTY SERVICES LLC, a County. Princ. office of LLC: 211 E. DIAMOND HILL PROPERTY HOLD- NY 10013. LLC formed in DE on domestic Limited Liability Company 43rd St., NY, NY 10017. SSNY des- 8/4/10. NY Sec. of State designated INGS LLC Articles of Org. filed NY Notice of Formation of ICER of 322 W. (LLC) filed with the Sec of State of ignated as agent of LLC upon whom Sec. of State (SSNY) 8/3/2010. 138th Street, LLC. Art. of Org. filed as agent of LLC upon whom process NY (SSNY) on 7/16/10. NY office process against it may be served. against it may be served and shall Office in NY Co. SSNY desig. agent with Secy. of State of NY (SSNY) on Location: New York County. SSNY is SSNY shall mail process to the LLC of LLC upon whom process may be 05/26/10. Office location: NY Co. mail process to: c/o CT Corporation designated as agent upon whom at the addr. of its princ. office. System, 111 8th Ave., NY, NY 10011, served. SSNY shall mail copy of SSNY designated as agent of LLC process against the LLC may be Purpose: Any lawful activity. process to 24 O’Shea Lane, Summit, upon whom process against it may regd. agent upon whom process may served. SSNY shall mail a copy of be served. DE addr. of LLC: c/o The NJ 07901. Purpose: Any lawful pur- be served. SSNY shall mail process any process against the LLC served pose. Principal business location: 45 to the LLC, c/o ICER Brands, LLC, Notice of Formation of YTR SOLU- Corporation Trust Co., 1209 Orange upon him/her to The LLC, c/o TIONS LLC. Arts. of Org. filed with St., Wilmington, DE 19801. Cert. of Park Ave., #1606 , NY, NY 10016. 1385 Broadway - 16th Fl., New York, Clemente Cohen, 49 E. 86th St., NY, NY 10018. Purpose: any lawful act Secy. of State of NY (SSNY) on Form. filed with DE Sec. of State, NY 10028 General Purpose 08/11/10. Office location: NY County. 401 Federal St., Dover, DE 19901. Notice of Qualification of Autumn or activity. SSNY designated as agent of LLC Purpose: any lawful activity. Games RS I, LLC. Authority filed with Notice of Formation of GWB DEVEL- upon whom process against it may NY Dept. of State on 8/6/10. Office Notice of Formation of 555 WEST OPMENT PARTNERS, LLC. Arts. of be served. SSNY shall mail process location: NY County. Princ. bus. 23RD PROPERTIES, LLC. Arts. of Notice of Formation of SCKB Partners Org. filed with Secy. of State of NY to Corporation Service Co., 80 State addr.: 54 Thompson St., 4th Fl., NY, Org. filed with Secy. of State of NY LLC. Art. Of Org. filed with Secy. Of (SSNY) on 06/30/10. Office location: St., Albany, NY 12207-2543, regd. NY 10014. LLC formed in DE on (SSNY) on 08/13/10. Office location: State of NY (SSNY) on 6/21/10. NY County. Princ. office of LLC: 250 agent upon whom and at which 8/2/10. NY Sec. of State designated NY County. SSNY designated as Office Location: New York County. W. 57th St., Ste. 1120, NY, NY 10107. process may be served. Purpose: as agent of LLC upon whom process agent of LLC upon whom process SSNY designated as agent of the LLC SSNY designated as agent of LLC Any lawful activity. against it may be served and shall against it may be served. SSNY shall upon whom process against it may mail process to the LLC, 24 Altamont upon whom process against it may be served. SSNY shall mail a copy of mail process to: c/o CT Corporation be served. SSNY shall mail process System, 111 8th Ave., NY, NY 10011, Ct., Morristown, NJ 07960. Purpose: Notice of Formation of ICER Outlets, any process to: c/o Jerome H. Any lawful activity. to the LLC at the addr. of its princ. LLC. Art. of Org. filed with Secy. of Siegel, M.D., P.C., 60 East End Ave., regd. agent upon whom process may office. Purpose: Any lawful activity. be served. DE addr. of LLC: 1209 State of NY (SSNY) on 02/26/10. New York, NY 10028. Purpose: To Orange St., Wilmington, DE 19801. Notice of Formation of JAZTB LLC. Office location: NY Co. SSNY engage in any lawful act or activity. Cert. of Form. filed with DE Sec. of Arts. of Org. filed with Secy. of State Notice is hereby given that a Hotel designated as agent of LLC upon State, 401 Federal St., Dover, DE of NY (SSNY) on 08/04/10. Office Liquor License for beer, wine and whom process against it may be Notice is hereby given that a license, 19901. Purpose: any lawful activity. location: NY County. SSNY designat- liquor has been applied for by the served. SSNY shall mail process number 1246416 for beer and wine, ed as agent of LLC upon whom undersigned to permit the sale of to the LLC, c/o ICER Brands, LLC, has been applied for by 1012 Second beer, wine and liquor at retail rates Notice of Qualification of SOURCERY process against it may be served. 1385 Broadway - 16th Fl., New York, Avenue Inc. to sell beer and wine at for on-premises consumption at the SOLUTIONS LLC. Authority filed with SSNY shall mail process to NY 10018. Purpose: any lawful act retail in a café under the Alcoholic Chelsea Hilton Garden Inn located at Secy. of State of NY (SSNY) on Corporation Service Co., 80 State St., or activity. Beverage Control Law at 1012 Second 119-121 West 28th Street, New York, 08/03/10. Office location: NY County. Albany, NY 12207, regd. agent upon Avenue, New York NY 10022 for on NY 10001 under the Alcoholic LLC formed in Delaware (DE) on whom and at which process may be Notice of Formation of IND. REV. LLC. premise consumption. 1012 Second Beverage Control Law. DiamondRock 06/25/10. Princ. office of LLC: 360 served. Purpose: Any lawful activity. Art. of Org. filed with Secy. of State Avenue Inc. DBA Caffe Martier Chelsea Tenant, LLC and Alliance Madison Ave., 18th Fl., NY, NY 10017. of NY (SSNY) on 03/12/10. Office Hospitality Management LLC. SSNY designated as agent of LLC Notice of Formation of 232 EAST location: NY Co. SSNY designated Notice of Formation of PHELAN, LLC. upon whom process against it may BROADWAY LLC. Arts. of Org. filed as agent of LLC upon whom process Arts. of Org. filed with Secy. of State be served. SSNY shall mail process with Secy. of State of N.Y. (SSNY) on Notice of Formation of Hester Street against it may be served. SSNY shall of NY (SSNY) on 8/19/10. Office to c/o Zachary Wydra, Beck Mack & 7/13/10. Office location: New York LLC. Art. of Org. filed with Secy. of mail process to the LLC, c/o ICER location: NY County. SSNY designated Oliver at the princ. office of the LLC. County. SSNY designated as agent State of NY (SSNY) on 07/23/2010. Brands, LLC, 1385 Broadway - 16th as agent of LLC upon whom process DE addr. of LLC: 2711 Centerville of LLC upon whom process against Office location: NY Co. SSNY Fl., New York, NY 10018. Purpose: against it may be served. SSNY shall Rd., Ste. 400, Wilmington, DE 19808. it may be served. SSNY shall mail designated as agent of LLC upon any lawful act or activity. mail process to princ. bus. loc.: c/o Arts. of Org. filed with DE Secy. of process to: c/o Ira Meister, Matthew whom process against it may be The LLC, 144 E. 24th St., 5D, NY, NY State, P.O. Box 898, Dover, DE Adam Properties, Inc., 127 East 59th served. SSNY shall mail process Name of For. LP: AB PERRY VALUE 10010, Attn: Chris Ann Phelan. 19903. Purpose: Any lawful activity. Street, New York, NY 10022. to the LLC, 113 Hester Street, PARTNERS (INTERMEDIATE) L.P. Purpose: any lawful activity. Purpose: any lawful activity. New York, NY 10002. Purpose: Appl. for Auth. filed with Sec. of State Notice of Qualification of AGA 15th any lawful act or activity. of NY: 6/22/2010. Jurisd. and date of Notice of Qualification of CANTERBURY Street, L.L.C. Authority filed with NY NOTICE OF FORMATION OF org.: DE 6/8/2010. Princ. bus. loc.: JUPITER, L.L.C. Authority filed with Dept. of State on 6/11/10. Office Skywriting Media LLC. Article of Notice of Qualification of Building 1345 Ave. of the Americas, NY, NY Secy. of State of NY (SSNY) on location: NY County. Princ. bus. Organization filed with the Secretary Blocks (US), LLC. Authority filed with 10105. NY State off. loc.: NY Cty. 08/30/10. Office location: NY County. addr.: 245 Park Ave., 26th Fl., NY, NY of State of NY (SSNY) on 4/26/2010. NY Dept. of State on 7/26/10. Office Sec. of State designated as agent LLC formed in Delaware (DE) on 10167. LLC formed in DE on 6/2/10. Office location NEW YORK County. location: NY County. LLC formed in upon whom process against it may 08/27/10. Princ. office of LLC: 350 NY Sec. of State designated as agent SSNY has been designated as agent FL on 5/7/10. NY Sec. of State des- be served. Sec. of State shall mail Park Ave., 4th Fl., NY, NY 10022. of LLC upon whom process against it upon whom process against it may ignated as agent of LLC upon whom copy of process to: c/o AB Perry SSNY designated as agent of LLC may be served and shall mail process be served. The Post Office address process against it may be served Value Partners GP LLC, 1345 Ave. of upon whom process against it may to: c/o CT Corporation System, 111 to which the SSNY shall mail a copy and shall mail process to: CorpDirect the Americas, NY, NY 10105. Addr. be served. SSNY shall mail process 8th Ave., NY, NY 10011, regd. agent of any process against the LLC Agents, Inc., 10 E. 40th St., 10th Fl., of LP in DE is: Corporation Service to c/o Corporation Service Co. (CSC), upon whom process may be served. served upon him/her is C/O the LLC NY, NY 10016. FL and principal Company, 2711 Centerville Rd., Ste. 80 State St., Albany, NY 12207-2543. DE addr. of LLC: The Corporation 72 Seaman Avenue 1C. New York, business addr.: 14004 Roosevelt 400, Wilmington, DE 19808. Name/ DE addr. of LLC: c/o CSC, 2711 Trust Co., 1209 Orange St., NY 10034. Purpose of LLC: to Blvd., Ste. 601H, Clearwater, FL addr. of GP avail. from Sec. of State. Centerville Rd., Ste. 400, Wilmington, Wilmington, DE 19801. Arts. of Org. engage in any lawful act or activity. 33762. Arts. of Org. filed with FL Sec. Authorized office in DE where Cert. DE 19808. Arts. of Org. filed with DE filed with DE Sec. of State, 401 Street address of Principal Business of State, 2661 Executive Center of LP is filed: DE Secy. of State, Secy. of State, Div. of Corps., 401 Federal St., Dover, DE 19901. location is: 72 Seaman Avenue 1C. Circle, Tallahassee, FL 32301. Townsend Bldg., Dover, DE 19901. Federal St., Dover, DE 19901. Purpose: any lawful activity. New York, NY 10034. Purpose: any lawful activity. Purpose: any lawful activity. Purpose: Any lawful activity.

September 13, 2010 | Crain’s New York Business | 39 nb37p39-40cl.qxp 9/10/10 3:16 PM Page 40

PUBLIC & LEGAL NOTICES

Notice of Qualification of DWUWS Notice of Qualification of C-III Realty Notice of Qualification of CYAN Notice of Formation of TAMARA YORK NOTICE OF FORMATION OF Salem LLC. Authority filed with Secy. of Services LLC. Authority filed with NY Management Group LLC. Authority PUBLIC RELATIONS, LLC. Arts. of Ginger LLC. Article of Organization State of NY (SSNY) on 07/28/10. Dept. of State on 7/8/10. Office loca- filed with Secy. of State of NY (SSNY) Org. filed with Secy. of State of NY filed with the Secretary of State of Office location: NY County. LLC tion: NY County. Princ. bus. addr.: on 7/13/10. Office location: NY (SSNY) on 05/05/10. Office location: NY (SSNY) on 06/10/2010. Office formed in Delaware (DE) on 200 Whitsett St., Ste. 100, Greenville, County. LLC formed in Delaware (DE) NY County. SSNY designated as location NEW YORK County. SSNY 07/19/10. Princ. office of LLC: c/o SC 29601. LLC formed in DE on on 2/26/10. SSNY designated as agent of LLC upon whom process has been designated as agent upon Janover, LLC, 805 Third Ave. - 10th 7/2/10. NY Sec. of State designated agent of LLC upon whom process against it may be served. SSNY shall whom process against it may be Fl., NY, NY 10022. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service served. The Post Office address to as agent of LLC upon whom process against it may be served and shall mail process to: c/o Corporation Co., 80 State St., Albany, NY 12207- which the SSNY shall mail a copy of against it may be served. SSNY shall mail process to: c/o CT Corporation Service Company (CSC), 80 State St., 2543, regd. agent upon whom and at any process against the LLC served mail process to the LLC at the addr. System, 111 8th Ave., NY, NY 10011, Albany, NY 12207. DE address of which process may be served. upon him/her is C/O the LLC 45 of its princ. office. DE addr. of LLC: regd. agent upon whom process may LLC: c/o CSC, 2711 Centerville Rd., Purpose: Any lawful activity. West 60th St,, #5J. New York, NY c/o Corporation Service Co., 2711 be served. DE addr. of LLC: 1209 Ste. 400, Wilmington, DE 19808. Arts. 10023. Purpose of LLC: to engage Centerville Rd., Ste. 400, Wilmington, Orange St., Wilmington, DE 19801. of Org. filed with DE Secy. of State, ALEXANDER AND IRINA LLC a in any lawful act or activity. Street DE 19808. Arts. of Org. filed with Arts. of Org. filed with DE Sec. of 401 Federal St., Ste. 4, Dover, DE domestic Limited Liability Company address of Principal Business loca- Secy. of State - DE, Div. of Corps., State, 401 Federal St., Dover, DE 19901. Purpose: any lawful activity. (LLC), filed with the Sec of State of tion is: Same as above. John G. Townsend Bldg., 401 19901. Purpose: any lawful activity. NY on 6/10/10. NY Office location: Federal St., Dover, DE 19901. Notice of Formation of Chop’t 80 Pine New York County. SSNY is designated NOTICE OF FORMATION OF LIMITED Purpose: Any lawful activity. NOTICE OF FORMATION OF LIMITED LLC. Arts of Org. filed with Secy. Of as agent upon whom process against LIABILITY COMPANY. NAME: ALL LIABILITY COMPANY. NAME: BRAND State of NY (SSNY) on 7/20/10. the LLC may be served. SSNY shall MY BIDS L.L.C. Articles of Organization 1559 LEXINGTON AVENUE REALTY, SPIRIT DESIGNS LLC. Articles of Office location: NY County. SSNY mail a copy of any process against were filed with the Secretary of State LLC a domestic Limited Liability Organization were filed with the designated as agent of LLC upon the LLC served upon him/her to The of New York (SSNY) on 08/12/10. Company (LLC), filed with the Sec of Secretary of State of New York (SSNY) whom process against it may be LLC, 2207 Broadway, Unit 10L, NY, Office location: New York County. State of NY on 6/17/10. NY Office on 07/30/10. Office location: New served. SSNY shall mail process to: NY 10024. General Purposes. SSNY has been designated as agent location: New York County. SSNY is York County. SSNY has been desig- the LLC, c/o Chopt, Attn: President, of the LLC upon whom process designated as agent upon whom nated as agent of the LLC upon whom 853 Broadway, Suite 606, NY, NY Notice of Formation of Carlton House against it may be served. SSNY shall process against the LLC may be process against it may be served. 10003. Purpose: any lawful activity. Development LLC. Arts. of Org. filed mail a copy of process to the LLC, served. SSNY shall mail a copy of SSNY shall mail a copy of process to with Secy. of State of NY (SSNY) on 36 West 20th Street, 3rd Floor, New any process against the LLC served the LLC, 330 East 48th Street, New Notice of Formation of NAMM FAMILY 7/13/10. Office location: NY Co. SSNY York, New York 10011. Purpose: For upon him/her to The LLC, 351 E. York, New York 10017. Purpose: For ASSOCIATES, LLC. Arts. of Org. filed designated as agent of LLC upon any lawful purpose. 61st St., #10C, NY, NY 10065. any lawful purpose. with Secy. of State of NY (SSNY) on whom process against it may be General Purposes. 08/03/10. Office location: NY County. served. SSNY shall mail process to: Notice of Formation of AMBASSADOR Notice of Formation of BSG Members Princ. office of LLC: 875 Park Ave., National Registered Agents, Inc., 875 MEDIA SALES LLC. Arts. of Org. NOTICE OF FORMATION OF Christel LLC. Art. of Org. filed with Secy. of #10A, NY, NY 10075. SSNY desig- Ave. of the Americas, Ste. 501, NY, NY filed with Secy. of State of NY (SSNY) D’Agostino, LLC. Article of Organization State of NY (SSNY) on 12/15/09. Office nated as agent of LLC upon whom 10001. Purpose: any lawful activities. on 12/02/09. Office location: NY filed with the Secretary of State of location: NY Co. SSNY designated process against it may be served. County. SSNY designated as agent NY (SSNY) on 02/23/09. Office loca- as agent of LLC upon whom process SSNY shall mail process to c/o of LLC upon whom process against tion: New York County. SSNY has against it may be served. SSNY shall Andrew Namm at the princ. office of ACQUA RPS LLC App. for Auth. filed it may be served. SSNY shall mail been designated as agent upon whom mail process to the LLC c/o Robinson the LLC. Purpose: Any lawful activity. NY Sec. of State (SSNY) 8/25/2010. process to c/o the LLC, 245 W. 17th process against it may be served. Brog Leinwand Greene Genovese LLC was organized on 8/13/2010 in St., 2nd Fl., NY, NY 10011-5387. The Post Office address to which the & Gluck, PC, Attn: Robert M. Milner, Notice of Formation of limited liability DE. Office in NY Co. SSNY desig. as Purpose: Any lawful activity. SSNY shall mail a copy of any process Esq., 1345 Ave of the Americas, 31st company (LLC). Name: Derived Data, agent of LLC upon whom process against the LLC served upon him is Fl., New York, NY 10105. Purpose: may be served. SSNY to mail copy of LLC. Articles of Organization filed Notice of Formation of 2861-2865 C/O the LLC United States Corporation any lawful act or activity. with Secretary of State of New York process to 110 Greene St., Ste. 1100, Agents, Brooklyn, NY 11228. NY, NY 10012. Required office at Broadway LLC. Art. of Org. filed with (SSNY) on 7/15/2010. NY office loca- Secy. of State of NY (SSNY) on Purpose of LLC: To engage in any Notice of Qualification of CENTRO NP tion: New York County. SSNY has 3500 S. Dupont Hwy., Dover DE lawful act or activity. Street address 19901. Cert. of Org. filed with SSDE, 07/28/10. Office location: NY Co. MONROE PLAZA, LLC. Authority been designated as agent of the LLC SSNY designated as agent of LLC of Principal Business location is: 310 filed with Secy. of State of NY (SSNY) upon whom process against it may 401 Federal St., Ste. 3, Dover DE W 72 St., New York, NY 10023. 19901. Purpose: Any lawful purpose. upon whom process against it may be on 07/16/10. Office location: NY be served. The post office address to served. SSNY shall mail process to the County. LLC formed in Delaware (DE) which SSNY shall mail a copy of any LLC, c/o Humes & Wagner LLP, 147 NOTICE OF FORMATION of Wanclan on 07/09/10. SSNY designated as process against the LLC served upon Notice of Qualification of Hamptons Forest Ave., Locust Valley, NY 11560. Productions, LLC. Article of Organization agent of LLC upon whom process him/her is: Oleg Doina, 866 United Residence II LLC. Authority filed with Purpose: any lawful act or activity. filed with the Secretary of State of against it may be served. SSNY shall Nations Plaza, Ste 566, New York, NY Secy. of State of NY (SSNY) on NY (SSNY) on 06/21/10. Office location: mail process to c/o Corporation 10017. Purpose/character of LLC: 8/9/10. Office location: NY County. Notice of Formation of WyThe Funding NY County. SSNY has been desig- Service Co., 80 State St., Albany, NY any business activity allowed by law. LLC formed in Delaware (DE) on LLC amended to Wythe Funding LLC. nated as agent upon whom process 12207-2543. DE addr. of LLC: 2711 8/5/2010. SSNY designated as Arts. of Org. filed with Secy. of State against it may be served. The Post Centerville Rd., Ste. 400, Wilmington, Notice of Qualification of AMBASSADOR agent of LLC upon whom process of NY (SSNY) on 7/29/10. Office Office address to which the SSNY DE 19808. Arts. of Org. filed with PUBLICATIONS, LLC. Authority filed against it may be served. SSNY location: NY County. SSNY designated shall mail a copy of any process Secy. of State, Div. of Corps., with Secy. of State of NY (SSNY) on shall mail process to: c/o as agent of LLC upon whom process against the LLC served upon him is Townsend Bldg., Dover, DE 19901. 04/06/01. Office location: NY County. Corporation Service Company, 80 against it may be served. SSNY shall C/O the LLC 7014 13th Avenue, Suite Purpose: Any lawful activity. LLC formed in Delaware (DE) on State St., Albany, NY 12207-2543. mail process to: The LLC, 207 W. 202, Brooklyn, NY, 11228. Purpose 01/19/01. Princ. office of LLC: 231 Address to be maintained in DE: of LLC: to engage in any lawful act or 25th St., Ste. 602, NY, NY 10001. NOTICE OF FORMATION OF Honest W. 29th St., Ste. 401, NY, NY 10001. 2711 Centerville Rd., Ste. 400, Purpose: any lawful activity. activity. Street address of Principal Crafts LLC. Articles of Organization SSNY designated as agent of LLC Wilmington, DE 19808. Arts of Org. Business location is: 250 E. 30th filed with the Secretary of State of NY upon whom process against it may filed with DE Secy. Of State, 401 Notice of Qualification of BROOKFIELD Street, Apt. 6B, New York, NY, 10016. (SSNY) on 6/10/10. Office location be served. SSNY shall mail process Federal St., Ste. 4, Dover, DE 19901. REAL ESTATE TURNAROUND FUND NEW YORK County. SSNY has been to c/o Cowan, DeBaets, Abrahams & Purpose: any lawful activities. GP OF GP, LLC. Authority filed with Name of LLC: THE FEARLESS designated as agent upon whom Sheppard LLP, 40 W. 57th St., NY, GROUP LLC. Art. of Org. filed Dept. process against it may be served. Secy. of State of NY (SSNY) on NY 10019. Arts. of Org. filed with DE Notice of Formation of RONAJ LLC. of State of NY on 7/9/2010. Off. Loc. The Post Office address to which the 08/26/10. Office location: NY County. Secy. of State, Lookerman and Arts. of Org. filed with Secy. of State in NY: NY Cty. Princ. bus. loc.: Robert SSNY shall mail a copy of any LLC formed in Delaware (DE) on Federal St., Dover, DE 19901. As of NY (SSNY) on 07/21/10. Office Davidman, 15 E. 26th St., Ste. 802, process against the LLC served upon 02/24/10. Princ. office of LLC: c/o amended by Cert. of Amendment location: NY County. Princ. office of NY, NY 10010. Secy. of State desig- him/her is C/O the LLC 7014 13th Brookfield Asset Management LLC, filed with SSNY on 09/10/07, the LLC: c/o Sky Management, 226 E. nated as agent of LLC upon whom Ave., Ste. 202. Brooklyn, NY 11228. Three World Financial Center, NY, NY name of the LLC is: AMBASSADOR 54th St., Ste. 402, NY, NY 10022. process against it may be served. Purpose of LLC: to engage in any 10281-1010. SSNY designated as MEDIA GROUP, LLC. Purpose: Any SSNY designated as agent of LLC Sec. of State shall mail a copy of lawful act or activity. Street address agent of LLC upon whom process lawful activity. upon whom process against it may process to: Robert Davidman, 15 E. of Principal Business location is: 140 against it may be served. SSNY shall be served. SSNY shall mail process 26th St., Ste. 802, NY, NY 10010. E. 81st St. #3A. New York, NY 10028. mail process to the LLC at the addr. of Notice of Qualification of COHESIVE to the LLC at the addr. of its princ. Purpose: any lawful activity. its princ. office. DE addr. of LLC: c/o CAPITAL PARTNERS, L.P. Authority office. Purpose: Any lawful activity. Corporation Service Co., 2711 Name of Foreign LLC: P. SCHOENFELD filed with Secy. of State of NY (SSNY) Centerville Rd., Ste. 400, Wilmington, NOTICE OF QUALIFICATION OF DT ASSET MANAGEMENT GP LLC. App. on 08/06/10. Office location: NY DE 19808. Arts. of Org. filed with Secy. ORTHOPAEDIC INSURANCE for Auth. filed NY Dept. of State: County. LP formed in Delaware (DE) Notice of Qualification of AMB LOCAL of State of DE, 401 Federal St., Dover, AGENCY, LLC. Arts of Application 12/24/08. Jurisd. and date of org.: DE on 07/06/10. Princ. office of LP: c/o MEDIA LLC. Authority filed with Secy. DE 19901. Purpose: Any lawful activity. for Authority filed with the Secy of 12/10/08. County off. loc.: New York Cohesive Capital (GP), L.P., 650 5th of State of NY (SSNY) on 06/10/09. State of New York (SSNY) on Cty. Princ. bus. loc.: 1350 Ave. of the Ave., 31st Fl., NY, NY 10019. SSNY Office location: NY County. LLC 4/15/10. N.Y. Office Location: NY Americas, 21st Fl., NY, NY 10019. designated as agent of LP upon whom formed in Delaware (DE) on 05/08/09. County. LLC formed in DELAWARE Sec. of State designated as agent of process against it may be served. SSNY designated as agent of LLC Place your on 1/19/10. SSNY designated as foreign LLC upon whom process SSNY shall mail process to c/o upon whom process against it may agent of LLC upon process may be against it may be served. The Sec. of Cohesive Capital Partners, 650 5th be served. SSNY shall mail process business card in served and shall mail a copy of any State shall mail copy of process to: Ave., 31st Fl., NY, NY 10019. Name to Vincent Lombardo, 195 Tanglewood process to the LLC: 111 Eighth 1350 Ave. of the Americas, 21st Fl., NY, and addr. of each general partner are Dr., Staten Island, NY 10308. DE Crain’s Business Avenue, New York, NY 10011. The NY 10019. Addr. of foreign LLC in available from SSNY. DE addr. of LP: addr. of LLC: 1521 Concord Pike, Principal Business Address of the DE is: National Corporate Research, c/o Corporation Service Co., 2711 #301, Wilmington, DE 19803. Arts. of Connections LLC is: 110 West Rd, Suite 227, Ltd., 615 South DuPont Hwy., Dover, Centerville Rd., Wilmington, DE 19808. Org. filed with Jeffrey W. Bullock, Towson, MD 21204. Purpose of LLC: DE 19901. Auth. officer in DE where Arts. of Org. filed with Secy. of State Dept. of State, Div. of Corps., John Call John Gallagher INSURANCE PRODUCER SELLING, Cert. of Form. filed: DE Sec. of State, of DE, Dept. of State, Div. of Corps., G. Townsend Bldg., 401 Federal St., SOLICITING AND ADMINISTERING Townsend Bldg., Dover, DE 19901. John Townsend Bldg., Dover, DE #4, Dover, DE 19901. Purpose: Any @ 212-210-0189 INSURANCE PROGRAMS. Purpose: any lawful activity. 19901. Purpose: Any lawful activity. lawful activity.

40 | Crain’s New York Business | September 13, 2010 20100913-NEWS--0041-NAT-CCI-CN_-- 9/10/2010 8:30 PM Page 1

too blinded by debt bur- be able to sell, and yet he dens to see the potential concedes that his invest- Key ruling looms for Ackman returns, says Mr. Ackman. ment works only if there is Most analysts point out a conversion. Continued from Page 1 possible bankruptcy when Mr. Ack- he executed against it, which gave that Stuy Town is worth “I didn’t have all the in- potential. The approach yielded a man began buying shares and debt 20 him a lot of credibility with the bank- only $2 billion, though the formation on General $1.5 billion gain from mall operator months ago.Shares that Mr.Ackman ruptcy judge,” says Jim Sullivan, a senior debt is $3 billion. Growth, and that turned

General Growth Properties.Howev- bought for $60 million are now worth managing director at research firm Mr. Ackman believes that bloomberg news out OK,” he says. er, an investment vehicle devoted to $1.2 billion, while the bonds he pur- Green Street Advisors. mortgage can be restructured just as Still,his unwillingness to detail his Target Corp.stock lost 93% of its val- chased for $135 million are now General Growth’s debts were. plans has unnerved some tenants, ue—nearly $2 billion—at one point worth $480 million. Wooing others That’s why he is trying to foreclose who worry their apartments would be and was recently disbanded. His 25% stake earned him a mr. ackman also convinced Brook- on the property.Holders of the senior priced far beyond their reach. Now Mr. Ackman is the lead in- board seat and the power to help de- field Asset Management, which has mortgage have sued to block him. Dan Garodnick, a council mem- vestor in the partnership that has vise the bankruptcy and reorganiza- significant real estate holdings, to What baffles many is why a man ber who lives in the complex and rep- bought $300 million of debt in Stuy tion plan. General Growth is ex- help recapitalize General Growth. who prides himself on conducting resents the district where it is located, Town for 15 cents on the dollar, and pected to emerge from bankruptcy “He really helped us see the value meticulous research is involved in is happy that Mr. Ackman has he is attempting to foreclose on the next month and will spin off a new in the assets,” says Bruce Flatt, Stuy Town at all.They note the mul- pledged to try to keep apartments af- sprawling complex.Later this month, company that is slated to have Mr. Brookfield’s CEO. titude of unresolved issues.For exam- fordable, but he has his doubts. a judge is expected to rule on whether Ackman as its chair. Just as they were with General ple, Mr. Ackman has no idea how “The devil is in the details,” says to allow it. A victory would pave the “He had a very credible plan, and Growth, Stuy Town investors were many of its roughly 11,000 units he’ll Mr. Garodnick.
way for Mr. Ackman to convert apartments in the rent-regulated complex into affordable co-ops—a plan he insists will free up Stuy Town’s hidden value. He pledges that the apartments will require down pay- ments of less than $15,000 and low carrying charges. Yet he declines to outline just how this will all be accom- plished with a property struggling under a massive debt load, leading some to wonder if he can pull it off. “I have the benefit of understand- ing complex transactions,” says Mr. Ackman,who heads Pershing Square Capital Management.“We will be of- fering [tenants] the deal of a lifetime.” Tall,with a crop of gray setting off penetrating blue eyes, Mr. Ackman grew up in Chappaqua, N.Y., the son of a wealthy real estate financier. Lat- er, he opted against joining the fami- ly business, Ackman-Ziff, even though he spent two years there be- tween earning his undergraduate de- gree and an M.B.A. from Harvard University. “I wanted to have my own identi- ty,” he says. When it subsequently came time to start a family,Mr.Ackman says he dated voraciously to “maximize the potential” of finding a mate. In the end, he met his wife, Karen, on a blind date. Laserlike focus mr. ackman takes a more focused approach with his investments, typi- cally owning only a handful of com- panies at any one time. His experience with one of his ear- lier campaigns, battling municipal bond insurer MBIA,helped to define him. His relentless six-year fight to highlight what he saw as major prob- lems with the company,whose shares he was betting against, caused both You want a financial ally with a powerful grasp of the national and international marketplace. With Union Bank®, you’ll the Securities and Exchange Com- have the expertise and solutions you need to expand your business on a global scale. Our relationship managers can mission and New York’s attorney general to investigate him. Ultimate- help you streamline operations with everything from global treasury management solutions to foreign exchange. And ly, no charges were filed against Mr. through our relationship with Mitsubishi UFJ Financial Group, you’ll have access to local experts in over 40 countries. Ackman,who reaped a personal prof- That’s the definition of a strong global partner. it of $150 million from a crusade against MBIA, which eventually al- With Union Bank, the world can be an easy place to do business. Call us today. most collapsed. Commercial Banking: Commercial Treasury Corporate & Institutional Specialized His Target campaign failed, al- Services: Treasury Services: Financial Services: though the value of his shares has Bob Garrett Les J. Goodwin Tim Farrell Grant Ahearn since appreciated. He snapped up Senior Vice President Senior Vice President Vice President Senior Executive Vice President shares in part because he was con- 415-705-7160 213-236-5159 917-639-4437 213-236-7514 vinced the company would be worth more if it spun off its real estate hold- ings. The retailer’s management dis- agreed, and when he lost his proxy ©2010 Union Bank, N.A. battle in June 2009,Mr.Ackman shed Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG), a tear during a speech where he quot- one of the world’s largest financial organizations. Financing subject to credit ed John F.Kennedy. and collateral approval. unionbank.com In contrast to solidly performing Target, General Growth was floun- dering and investors were fleeing a

September 13, 2010 | Crain’s New York Business | 41 20100913-NEWS--0042-NAT-CCI-CN_-- 9/10/2010 12:28 PM Page 1

FOR THE RECORD

Warren at (646) 252-6101 or Aug. 26, in a transaction worth Aug. 23, in a transaction worth [email protected]. $19,814,048. He now directly holds $1,093,108. Between Aug. 23 and Aug. ABOUT THIS SECTION 60,735 shares. 27, he sold 41,901 shares at prices FOR THE RECORD is a weekly listing of information from the public record that ranging from $50.85 to $51.65, in a REAL ESTATE DEALS GRAT Remainder Trust exercised transaction worth $2,146,386. He now can help businesspeople in the New York area find opportunities, potential options on 20,000 shares of common directly holds 3,866 shares. new clients and updates on competitors. Companies that would like to have details stock at prices ranging from $32.15 to To ask questions or get more information on this section, contact Denise of their recent transactions appear in these $40.50 on Aug. 18, in a transaction G Loews Corp. (L) Southwood at [email protected]. listings should e-mail descriptions worth $726,500. Between Aug. 18 and Andrew H. Tisch, co-chairman, following this format to Aug. 25, it sold 260,000 shares at prices exercised options on 60,000 shares of [email protected], with “Real ranging from $56.18 to $59.17, in a common stock at $15.57 on Aug. 23, in estate transaction” in the subject line, or transaction worth $14,915,584. It now a transaction worth $934,200. On the enter them online at indirectly holds 1,778,890 shares. same day, he sold 60,000 shares at BANKRUPTCIES GOVERNMENT CONTRACT crainsnewyork.com/submitadeal. Deals are $36.16, in a transaction worth OPPORTUNITIES listed in order of square footage. Leonard A. Lauder, chairman emeritus $2,169,600. He now directly holds The following listings are selected from the and director, sold 80,000 shares of 13,821,800 shares. most recent available filings by companies Following are selected contract COMMERCIAL common stock at prices ranging from seeking bankruptcy protection in the opportunities recently announced by New G Hart Reproduction Services signed a $56.19 to $59.17 between Aug. 18 and James S. Tisch, president and chief Southern and Eastern Districts of New York City agencies.To learn how to sell 10-year lease for 7,250 square feet at 242 Aug. 25, in a transaction worth executive, exercised options on 60,000 York. Information was obtained from U.S. goods and services to city government, visit W. 36th St., a 14-story, 161,000-square- $4,591,477. He now indirectly holds shares of common stock at $15.57 on Bankruptcy Court records available on www.nyc.gov/selltonyc. For a searchable foot building managed by The Kaufman 2,690,670 shares. Aug. 23, in a transaction worth Public Access to Court Electronic Records. database of current procurement notices, Organization. The firm will occupy part $934,200. On the same day, he sold Listings are in alphabetical order. visit www.nyc.gov/cityrecord. Listings are of the eighth floor. Michael Heaner and Gary M. Lauder GRAT Remainder 60,000 shares at $36.16, in a transaction alphabetical by category and department. Daniel Kahn of The Kaufman Trust sold 80,000 shares of common worth $2,169,600. He now directly G ADJ Coffee Shop Inc. Organization represented the tenant in stock at prices ranging from $56.92 to holds 14,289,800 shares. 1 Brookdale Plaza, Brooklyn CONSTRUCTION the transaction, while Grant Greenspan, $57.32 between Aug. 26 and Aug. 27, in Filed for Chapter 11 bankruptcy G Department of Parks and Recreation also of Kaufman, represented the a transaction worth $4,564,127. It now Jonathan M. Tisch, co-chairman, protection on Aug. 26. The filing Seeks competitive sealed bids by 10:30 landlord in-house. The asking rent was indirectly holds 1,698,890 shares. exercised options on 60,000 shares of cites estimated liabilities of $500,001 to a.m. on Oct. 5 for reconstruction of the $22 per square foot. common stock at $15.57 on Aug. 23, in $1 million and estimated assets of ball field at Vinmont Veteran Park in the G Warnaco Group Inc. (WRC) a transaction worth $934,200. On the $100,001 to $500,000. Among creditors Bronx and construction of a comfort G Lucus Group signed a five-year, Joseph R. Gromek, president and chief same day, he sold 60,000 shares at with the largest unsecured claims are station at the Elmhurst gas tank site in 6,000-square-foot least at 500 Fifth Ave. executive, sold 100,000 shares of $36.16, in a transaction worth Merchant Cash and Capital, owed Queens. For more information, contact The tenant will occupy part of the 11th common stock at $41.83 on Aug. 25, in $2,169,600. He now directly holds $36,000; and Florence Barber, owed Juan Alban at (718) 760-6771 or floor and was represented by Richard a transaction worth $4,183,000. He now 7,196,860 shares. $26,000. [email protected]. Charkham and Justin Halpern of directly holds 184,661 shares. CresaPartners. The landlord, L&B G L-3 Communications Holdings Inc. (LLL) G Alberton Developers Inc. G Housing Authority Realty Advisors, was represented by G WebMD Health Corp. (WBMD) Alan H. Washkowitz, director, sold 85-94 66th Ave., Rego Park, Queens Seeks competitive sealed bids by 10 a.m. Sean Kearns and Harry Blair of Wayne Thomas Gattinella, president 25,000 shares of common stock at prices Filed for Chapter 11 bankruptcy on Sept. 27 for replacement of heating FirstService Williams. and chief executive, sold 47,198 shares ranging from $67.91 to $71.51 between protection on Aug. 30. The filing cites control panels at various developments of common stock at prices ranging from Aug. 17 and Aug. 24, in a transaction estimated liabilities of $1,000,001 to in New York City. For more G Vanderweil Engineers signed a seven- $51.31 to $51.47 between Aug. 18 and worth $1,769,750. He now indirectly $10 million and estimated assets of information, contact Gloria Guillo at year lease for 4,550 square feet at 499 Aug. 20, in a transaction worth holds 104,865 shares. $1,000,001 to $10 million. Among (212) 306-3121 or Seventh Ave., a 25-story, 170,000- $2,424,907. He now directly holds creditors with the largest unsecured [email protected]. square-foot building managed by Savitt 177,919 shares. G Alleghany Corp. (Y) claims are Marie Varveris, owed Partners. The firm will occupy the entire Robert M. Hart, senior vice president of $1,450,000; and Scobee General GOODS AND SERVICES 19th floor. Thomas P.Sullivan and R. Anthony Vuolo, chief operating officer law and secretary, sold 5,620 shares of Contracting, owed $730,000. G Department of Citywide Administrative Connor Winn of Coldwell Banker and chief financial officer, exercised common stock at prices ranging from Services Commercial Hunter Phoenix options on 111,100 shares of common $297.75 to $300.00 on Aug. 18, in a G Brisam Covina Seeks competitive sealed bids by 10:30 represented the tenant in the stock at $19.33 on Aug. 23, in a transaction worth $1,681,720. He now 420 Great Neck Road, Great Neck, a.m. on Sept. 23 for fuel oil, heating and transaction, while Carol Sacks and transaction worth $2,147,563. Between directly and indirectly holds 12,859 L.I. bioheating bulk delivery. For more Alicia Popper represented the landlord Aug. 24 and Aug. 30, he sold 37,461 shares. Filed for Chapter 11 bankruptcy information, contact Anna Wong at in-house. The asking rent was $40 per shares at prices ranging from $50.90 to protection on Aug. 17. The filing cites (212) 669-8610 or square foot. $51.40, in a transaction worth G Overseas Shipholding Group Inc. (OSG) estimated liabilities of $10,000,001 to [email protected]. $1,917,836. He now directly holds Charles A. Fribourg, director, purchased $50 million, and estimated assets of RETAIL 202,122 shares. 44,456 shares of common stock at prices $10,000,001 to $50 million. Among G Department of Education G Ford Motor Co. dealer Bay Ridge ranging from $32.88 to $33.69 between creditors with the largest unsecured Seeks competitive sealed bids by 4 p.m. Auto has signed a 25-year lease for a Mark J. Adler, director, exercised options Aug. 16 and Aug. 23, in a transaction claims are Willis of Oregon Inc., owed on Sept. 20 for presorted mail services 25,000-square-foot lot at 612 86th St. in on 54,529 shares of common stock at worth $1,466,386. He now indirectly $44,727; and Radisson Hotel from the Central Mail Facility in Brooklyn, owned by Eugene and prices ranging from $17.50 to $30.95 on holds 160,151 shares.
Worldwide, owed $35,343.01. Brooklyn. For more information, contact Seymour Hionas. The site includes a the vendor hotline at (718) 935-2300 or 7,500-square-foot building. Neil Dolgin G Cosmo Express International Corp. [email protected]. and Bob Klein of Kalmon Dolgin 145-38 157th St., Jamaica, Queens Affiliates represented the tenant and the DEALS ROUNDUP Filed for Chapter 11 bankruptcy G Health and Hospitals Corp., Harlem owners in the transaction. The asking Hospital Center protection on Aug. 20. The filing cites rent for the building was $50 per square TRANSACTION SIZE estimated liabilities of $100,001 to Seeks competitive sealed bids by 3 p.m. foot. COMPANY (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE $500,000 and estimated assets of $0 to on Sept. 20 for a blanket order of $50,000. Among creditors with the laboratory slides. For details, contact G Incognito Bistro signed a long-term BMG Rights $508.5 Kohlberg Kravis Roberts & Co. GCI Management GmbH (Manhattan), Bertelsmann AG largest unsecured claims are AMB David Pacheco at (718) 212-5989 or lease for 4,880 square feet at 30 W. 18th Property, owed $290,000; and Chase, [email protected]. St., a 20-story, 94,000-square-foot Illumination and Detection $500.0 Veritas Capital (Manhattan) FB M&A owed $37,000. residential and retail building owned by Solutions Business G Health and Hospitals Corp., Queens 30 West 18th Associates.The company CRT Capital Group $225.0 Aquiline Capital Partners GCI G EBG Holdings Health Network will occupy part of the ground floor and (Manhattan), individual investors, 505 Fifth Ave. Seeks competitive sealed bids by 2 p.m. basement. David Beare of Core Group management of CRT Capital Group Filed for Chapter 11 bankruptcy on Sept. 28 for a service and preventive NYC represented the tenant in lease iEnergizer Inc. (Manhattan) $56.8 Not disclosed GCI protection on Aug. 18. The filing cites maintenance contract for the fire alarm negotiations, while Sal Ferrigno and Ener1 Inc. (Manhattan) $55.0 Goldman Sachs Asset Management GCI estimated liabilities of more than $1 system. Mandatory prebid site tours will Richard Gelber of Robert K. Futterman (Manhattan), Whitebox Advisors billion and estimated assets of more be at 10 a.m. on Sept. 21 and Sept. 22 at & Associates acted on behalf of the 50% in Trygg Pharma AS $45.7 Lindsay Goldberg (Manhattan) FB M&A than $1 billion. Among creditors the Elmhurst Hospital Center. landlord. The asking rent was not and 50% in Natural Nutrition with the largest unsecured claims are Interested vendors need to attend one disclosed. Development Ltd. AS Credit Suisse, Cayman Islands day only. For more information, contact Trinity Pipeline $34.0 Metalmark Capital (Manhattan), FB M&A Branch, owed $427 million; and Aurelio Morrone at (718) 883-6000 or unknown minority stake Distrigas of Massachusetts, owed [email protected]. STOCK TRANSACTIONS 250-unit portfolio of San $30.3 Angelo Gordon & Co. SB M&A $50.7 million. Francisco apartment buildings (Manhattan), The Prado Group Inc. G School Construction Authority Following are recent insider transactions at EndoGastric Solutions Inc. $30.0 Advanced Technology Ventures, GCI G LAN Utilities Electric Inc. Requests proposals by 2 p.m. on Sept. 15 New York’s largest publicly held companies Canaan Partners, MPM Capital, 700 Broadhollow Road, Farmingdale, for services in connection with facility filed with the Securities and Exchange Radius Ventures (Manhattan), L.I. management systems integration at Commission by executives and major De Novo Ventures, Foundation Medical Filed for Chapter 11 bankruptcy various schools throughout the city. For shareholders. Listings are in order of Partners, Chicago Growth Partners protection on Aug. 30. The filing cites more information, contact Nereida transaction value.The information was The Old Greenwich $10.5 Arthur J. Gallagher & Co. SB M&A estimated liabilities of $1,000,001 to Rodriguez at (718) 752-5499 or obtained from Thomson Reuters. Consulting Group (Manhattan) $10 million and estimated assets of [email protected]. Selected deals announced for the week ended Sept. 4 involving companies in metro New York. $1,000,001 to $10 million. Among G Estée Lauder Cos. (EL) FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing creditors with the largest unsecured G Triborough Bridge and Tunnel Authority Ronald S. Lauder, chairman of Clinique shares of a company with the participation of a financial buyer. GCI: Growth capital investment represents new money invested in a company for a minority stake. SB M&A: Strategic buyer claims are Joint Industry Board, owed Seeks competitive sealed bids by 3 p.m. Laboratories, sold 350,000 shares of M&A represents a minority or majority acquisition of existing shares of a company without the $196,349.30; and the Internal Revenue on Sept. 22 for janitorial supplies. For common stock at prices ranging from participation of a financial buyer. source: capitaliq Service, owed $145,000. more information, contact Victoria $56.40 to $57.10 between Aug. 25 and

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rents were an economical $95 a square shopping blog Racked that a café is in foot, according to Ms. Betesh, who the works.Though he said it will not Jacobsville, NYC negotiated the deal for Mr. Jacobs. be on Bleecker, some brokers won’t Primaries (He did not return calls requesting rule that out. “Anything new that Continued from Page 1 Jacobs rather than just one big store, comment for this story.) comes on the market, [Marc and Continued from Page 3 borhood. it reinforces the brand.” It was the perfect price for a young Ralph] are notified immediately be- in the bank and strong poll numbers, Welcome to Jacobsville. Once Landlords are also fans.Bleecker’s Mr. Jacobs, a designer just beginning cause they’re the most obvious candi- will be heavily favored against either lined with independent antique small store footprints—most are less to make a name for himself in a very dates,” says Christopher Owles, a man. But campaign consultant shops and mom-and-pop retailers, than 1,000 square feet—were once a competitive industry.It took him nine principal at Sinvin. Joseph Mercurio notes that if Mr. the Bleecker Street strip just south of bargain. But thanks to the influx of years to build up his empire, which Even so, Jacobsville is not the Lazio loses the primary, stops cam- Bank Street has now become home to names, rents have quadrupled. now includes an accessories store, a place where everyone wants to be. paigning and gets fewer than 50,000 primarily high-end, international Bleecker Street also serves as the kids’store and two men’s shops a block While landlords cash in on high votes on the Conservative Party line chains more popular with the upscale, go-between for the meatpacking dis- away on West 4th Street. rents, other shopkeepers are cashing in November, the party would lose its Madison Avenue set. While Mr. Ja- trict and SoHo, both popular shop- out. After 15 years on Bleecker, an- ballot spot for future elections. cobs holds the keys to the kingdom ping destinations, making it “a very Others rush in tique and gift shop Leo Design Three little-known Republicans with his half-dozen locations, other strategic point,” says Laurent of course, like sharks smelling moved to Hudson Street last month. are competing to face Sen. Kirsten popular designers, like Ralph Lauren Bourscheidt,executive creative direc- blood, other retailers sensed success Owner Kimo Jung says his old land- Gillibrand in November. Joseph and James Perse, are following his tor at branding firm STC Associates. and quickly began amassing their lord refused to renew his lease. Simi- DioGuardi, a former Westchester lead by leasing store after store—af- “It becomes the natural path from own Bleecker Street territories. larly,Olive & Bette’s,a local boutique County congressman, leads in the ter store. Even Michael Kors is step- luxury in SoHo toward trendy in Ralph Lauren now has four stores, that had been at 321 Bleecker since polls, but former Bear Stearns chief ping into the ring. meatpacking.” while West Coast designer Mr. Perse 2004, was recently bought out by its economist David Malpass had more For Mr. Jacobs and his ilk, the se- The shift began in 2001, when has two. And as they snapped up landlord, Beck Street Capital. money. Bruce Blakeman, a former ries of small shops creates an image of Bleecker Street was still,well,Bleeck- storefronts, rents began to rise. Cur- “He offered me seven times what Nassau County legislator, is also exclusivity, one that offers more sub- er Street—a cozy, tree-lined lane rent asking prices range from $350 to I could earn in a year,” says Olive & running. tlety than, say, a big box on Fifth Av- winding past brownstones and eclec- $500 a square foot. Bette’s owner,Stacey Pecor,who took In a key state Senate primary, la- enue. “It’s more bang for your buck,” tic stores. Mr. Jacobs, himself a resi- Higher rents have not deterred the money and ran.Her old space was bor unions, tenant activists, the says Roxanne Betesh, senior manag- dent of the neighborhood, signed his Mr. Jacobs. Brokers say he’s sniffing just leased to Mr. Kors. Working Families Party and Demo- ing director of Sinvin Realty. “If you first lease then for a women’s store at around for more space.Robert Duffy, Mike Joyce, a graphic designer cratic officials are backing challenger see Marc Jacobs, Marc Jacobs, Marc 403-405 Bleecker St. At the time, president of the firm, recently told who has lived in the area for 16 years, Gustavo Rivera in a massive effort to took matters into his own hands late unseat Bronx Sen. Pedro Espada, last year by distributing 3,000 post- whom they view as disloyal and cor- cards with the slogan “Less Marc Ja- rupt. Real estate interests are backing Bicycles cobs, More Jane Jacobs,” referring to the incumbent, a stalwart opponent the urban activist who championed of pro-tenant bills. community diversity. “Marc Jacobs Overall, nine Senate seats and 22 Continued from Page 1 has been like a punchline in the West Assembly seats in the city are being Brooklyn, where the family is in con- Village for the past few years,” says contested in the primary. The races tract to buy a three-bedroom apart- Mr. Joyce. “Now there’s Ralph Lau- will demonstrate if anti-incumbent, ment. ren. It’s taken the character and the anti-Albany sentiment is as strong as “My eight-year-old twins had been charm from the village.”
some polls suggest.
cycling to school in the Netherlands almost daily,so we anticipate they will be cycling regularly to school here.” Suddenly, bike storage has be- come a make-or-break amenity for apartment buyers and renters alike. Scores of buildings across bike- friendly Brooklyn and even congest- ed Manhattan are responding to the catheriine gibbons catheriine burgeoning demand, adding more ON A ROLL: One of two bike-storage sheds recently installed in back of 309 E. 87th St. parking space for two-wheelers. To keep some control over the newly popular perk, some developers have At 309 E. 87th St., the condo charging for it—if only to discourage even begun charging fees as high as board of the 125-unit property added people from taking up space with un- $10 per bike a month. two 10-by-10-foot sheds in the back- used bikes. At The Edge, a 565-unit “More people are asking for bike yard in July, after it became clear that luxury condo tower along the space or multiple bike spaces,”says Jay the 30 bike hooks in the building’s Williamsburg waterfront, residents Overbye, an associate broker at Hal- basement were inadequate. will be billed a small, to-be-deter- stead Property.“These conversations “There just wasn’t enough space,” mined monthly rental fee for using didn’t happen a year ago.” says Michael Donuk, director of the bike room, according to High- The statistics are dramatic. Last management for Argo Real Estate, lyann Krasnow, executive vice presi- year, the 201,000 bike riders who hit the building’s property manager. dent of sales at The Developers the streets on an average day logged a Group,the exclusive marketer for the total of 1.7 million miles across the Maxed out building. five boroughs, according to Trans- other buildings are repurposing At The Sheffield, an 845-unit portation Alternatives, an advocacy underutilized storage rooms or park- condo conversion on Manhattan’s group, and the city Department of ing spaces to accommodate the tide of West Side, property manager Rose Transportation.The number of two- cycles. Stephen Kliegerman, execu- Associates Inc.quadrupled bike space wheeled commuters soared 79% in tive director of development market- to 169 spots when it took over the the past three years.At the same time, ing at Halstead Property,reports that building a year ago.It began charging more than 200 miles of bike lanes four of the projects he is marketing all $8 to $10 a month per bike on Aug. have been added to city streets, and maxed out on their bike-storage 1. bike-friendly parks along the Hud- space and have recently added more. “I thought there would be com- son and East rivers and underneath Steiner NYC, the developer of 80 plaints, but there weren’t,” says Jack the Brooklyn Bridge have been ex- Metropolitan in Williamsburg, is Levy, senior managing director at panded. tripling the size of its bike-storage Rose. “The charge ensures that bikes Taking note of the trend, the city room, to 550 square feet. are not left unused.” passed a law last year requiring new “In Williamsburg there are more Rose now charges for bike storage residential buildings with more than bikers than drivers,” says Steffan at two dozen of the buildings that it 10 units to have one bike space per Stern, president of Steiner NYC. owns or manages in the city,Mr.Levy two apartments. Even officially designated green says. “With ridership increases, people buildings,which have already allocat- Mr. Schupp, who hopes to close have to park bikes somewhere,” says ed generous space to bike parking,are on his apartment at 80 Metropolitan Caroline Samponaro, director of bi- adding more in the face of demand within a month, has some misgivings cycle advocacy at Transportation Al- that is outstripping all projections. about the idea of paying for bike ternatives. The Visionaire in Battery Park City, space. The days of storing bikes in an a 243-unit condo, recently added 25 “If I was a single guy with one bike, apartment or on the balcony or chain- spaces and may add another 25. it’s not a big deal, but when you’re ing them to a nearby lamppost are Bike space has become such a hot paying for the whole family, it adds over. commodity that some buildings are up,” he points out.

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a juggernaut under star editor Dave In a nod to the migration away a year ago, and it has returned to ner’s World, according to Media In- Zinczenko, and launched Women’s from print, she also brought in con- profitability, she says. dustry Newsletter, but not nearly Rodale Health as a response to the struggles sulting firm Booz & Co. to confer This is largely due to lower costs, enough to make up for the previous of its flagship title, Prevention. The on projects, including putting Ro- including the elimination of Mr. year’s double-digit slide. Mean- Continued from Page 3 company has also built notable on- dale content onto the Starbucks Murphy’s reported $3 million while, ad pages fell during the same tween Emmaus and the company’s line businesses, including the sub- Digital Network, which launches salary. But some observers think period for Rodale’s other three titles: New York City offices. She adds scription site The Biggest Loser next month. A Rodale wellness site Rodale could use more publicity. Organic Gardening, Bicycling and that she expects to “take risks and try Club. will also launch on MSN this fall. “They need to drive their mar- Women’s Health. Sales at Rodale new things—for the long term, and Ms.Rodale says the Web can but- keting campaign harder, and that’s Books are also down this year. not for some short-term résumé im- Devastating year tress the direct-sales program, one of not one of Maria Rodale’s fortes,” provement.” so far, Ms. Rodale has focused on the company’s traditional strengths. says Steve Greenberger, who runs Optimism on tap Mr. Murphy was traveling and improving basics, like circulation, One thing she won’t do is sell off his own media and marketing firm. ms. rodale is optimistic about the could not be reached for comment. following a devastating year during Runner’s World and Bicycling— Combined ad revenue for the book division’s 2011 list, which will Founded in 1930 by Ms.Rodale’s which the publisher laid off more bought by her late father,Robert Ro- publisher’s six titles fell 13% in 2009, feature titles by Starbucks CEO organic farmer grandfather, J.I. Ro- than 100 staffers and folded Best Life. dale—or rely on private equity. to $450 million, according to Pub- Howard Schultz and actor Ted Dan- dale,the company has always hewed Recently she installed former “It’s not about needing huge piles lishers Information Bureau, which son. She also points to growth in to its healthy planet credo. In the Ladies’ Home Journal Editor-in- of cash,” she says. “It’s about doing does not take into account ad-rate newsstand sales for Women’s Health past decade, it has published block- Chief Diane Salvatore as the top ed- things differently.” discounts. Through the first three and Organic Gardening. And Rodale buster best-sellers like The South itor at Prevention—the latest in a Rodale, she adds, is in a much quarters of 2010, ad pages rose for will be hiring again “in new areas,” Beach Diet, turned Men’s Health into line of editors. better financial position than it was Prevention, Men’s Health and Run- Ms.Rodale says,“and at all levels.”
JetBlue Continued from Page 2 but perks like Virgin America’s ad- justable headrests and Wi-Fi, or American Airlines’“lie-flat seats” in business class—things for which there’s no jaunty JetBlue equivalent. “JetBlue redefined the airline ex- perience 10 years ago,but the revolu- tion is over,” says Henry Harteveldt, an industry analyst with Forrester Research. “It’s time to innovate again. If JetBlue isn’t careful, it’ll wake up and find that Delta has be- come a stronger competitor at JFK.” JetBlue is adding seat capacity this year, roughly 6% in the third quarter and 11% more in the fourth quarter, much of it from Boston to business-travel locales like Denver, Phoenix, Raleigh-Durham and Washington. It also invested heavily this year in a new reservation system to make it easier for corporate travel managers to connect with the airline. “Our growth used to be at a much more frantic pace,in the double dig- its year after year,” says Robin Life just got better. Hayes, JetBlue’s chief commercial officer. “We’ve slowed it down.” The steadier approach seems to be working. Flight schedules for the Provide your employees Aflac last three months of 2010 show that * seven airlines have cut capacity in life insurance at no cost to you. markets where they compete with JetBlue, including AirTran, United and American, according to data By providing Aflac life, you’ll take better care of your employees compiled by Hudson Securities. with flexible options like whole, term, and juvenile life insurance. “With the exception of Delta and Virgin America, we’re seeing † What’s more, with Aflac’s more affordable price, it all adds up to every carrier capitulate to JetBlue being able to complement your existing benefits with one of the where direct and indirect competi- most well-known and trusted brands. tion exists,” says Daniel McKenzie, an airline analyst with Hudson. Southwest, for instance, tried for For more information, visit aflac.com/life or call 1-877-236-2352 more than a year to challenge JetBlue to learn about all the benefits of Aflac life. on the JFK-to-Las Vegas route. It’s now reducing service on that route by 60% for the last quarter. JetBlue reported positive cash flow in 2009 for the first time, de- spite the ugly depths of the reces- sion, and its earnings for the second quarter of this year were $30 million, compared with $20 million a year earlier, exceeding analyst expecta- tions. Shares are up more than 5% over the past six months. Clearly,the airline is finally shak- Coverage underwritten by American Family Life Assurance Company ing off the Valentine’s Day disaster of Columbus. In New York, coverage underwritten by American Family Life Assurance Company of New York. of 2007, when a winter storm grounded hundreds of planes.

* There may be indirect administrative or other costs. “JetBlue used to be a little bit ca- † More affordable based on Aflac’s premium rates prior to August 2010. sual and a little bit cavalier in the way © 2010 Aflac Incorporated. MMC10430 it did things,” says Mr. Harteveldt. “But now it’s being very smart.”

44 | Crain’s New York Business | September 13, 2010 20100913-NEWS--0045-NAT-CCI-CN_-- 9/9/2010 6:01 PM Page 1

1.72 Number of unemployed people per advertised job in NYC for September BUSINESS LIVES Source: Juju.com’s Job Search Difficulty Index HOT JOBS EXECUTIVE INBOX

SENIOR MANAGER, Anne Fisher PRODUCT DEVELOPMENT ORGANIZATION City’s Connecting Department of Education JOB DESCRIPTION Lead develop- the inner city ment of IT system to support tal- with investors ent management; design each stage of the product’s life cycle LIKE MOST BIG CITIES, New York MOST IMPORTANT TASKS Build has struggling areas where poverty understanding of existing persists even when the economy systems; perform and analyze is booming. But Deborah Shufrin, market research; define overall a senior VP at the Initiative for a features of new product Competitive Inner City, says, CREDENTIALS NEEDED Master’s JUST FOLKS: “We’ve found that if you can help in related field; three to five years’ Hasting Stainrod has greeted drop-in even a few businesses prosper experience in related area; celebs and lots of in distressed areas, it has a familiarity with product-develop- regulars at Junior’s. tremendous impact.” ment concepts The Boston-based nonprofit SALARY At least $81,000 (www.icic.org) connects people RECRUITER Internal like Larry Velez, chief executive of DOWNSIDE Working for a Sinu (www.sinu.com), with government organization in potential investors. constant need of funds “We provide information technology services to small UPSIDE Managing a multimillion- dollar project budget businesses and nonprofits in the Bronx, Harlem and parts of Operator of the largest school Brooklyn where other IT firms system in the nation, the DOE has won’t go,” Mr. Velez says. nearly 1.1 million students, 135,000 employees, and an Last November, the CEO annual budget of $17 billion. spent two days meeting with potential backers at an annual —EMILY LAERMER event for small businesspeople from all over the United States: the Inner City Capital Connections EXECUTIVE MOVES program, co-sponsored by ICIC and Bank of America. Rodale Inc.: Diane “It was kind of like speed Salvatore, 49, was buck ennis dating,” Mr. Velez says. The named editor-in-chief sponsors hope that one of Sinu’s of Prevention GOTHAM GIGS encounters will lead to a long- magazine. She was term relationship. previously editor-in- chief of Ladies’ Home This year, the organizers Journal. expect 100 entrepreneurs in Los Chaves & Perlowitz: Alan Schacter, 48, Angeles on Nov. 15-16, with a was named head of the law firm’s Cheesecake Therapy large New York contingent. Some commercial real estate and corporate 100 to 150 investors will group. He previously ran his own participate, up from 75 last year. practice. denzel washington, serena williams and Bill Clinton are just a “Instead of just showing up for a Hypres Inc.: Paul E. Donofrio, 51, joined ‘If I see few of the celebrities Hasting Stainrod has greeted over the years the electronics company as chief day or two to source deals, these financial officer. He most recently someone at Junior’s in Brooklyn. But Mr. Stainrod, the longtime manager of investors are expected to be served as chief financial officer at The the 60-year-old restaurant, says regular patrons are the ones he mentors for six months or a year Innovative Companies. sitting afterward,” Ms. Shufrin says. Regional Alliance for Small Contractors: enjoys most. ¶ In addition to overseeing 120 staffers and making Since 2005, investors have Jay Badame, 53, was looking sure the food is fresh and the famous cheesecakes are ready, Mr. poured more than $350 million appointed chairman of the organization. He Stainrod, 45, acts as a therapist and dispenses relationship advice. “If into companies they found at serves as the president sad, I go I see someone sitting around looking sad, I go and talk to them,” he these gatherings. To be eligible, a and chief operating says. ¶ Mr. Stainrod worked as a waiter in his native Jamaica before business must have annual officer of Tishman talk to revenues of at least $2 million. Construction Corp. of immigrating to the U.S. in 1989 looking for a better life and a way to It also must be headquartered or New York, New Jersey them’ provide for his two kids. He started as a waiter at Junior’s shortly have at least 51% of its and Pennsylvania. BDO Consulting: Richard S. Hauer, 48, after he arrived and was promoted to manager two years later. ¶ The operations in an “economically was named managing director of the aficionado of corned beef and pastrami sandwiches is devoted to his distressed” neighborhood. consulting firm’s real estate advisory job. His fiancée complains when he works on holidays—which is The deadline for applications area. He was previously president of real this year is Sept. 30; visit estate services at Great American often—but Mr. Stainrod knows how to appease her. ¶ “To keep www.icic.org/iccc. Group. people quiet, I bring them a cheesecake, and then they aren’t mad at New York Institute of Technology: Patricia DOES BEING in a “distressed” area af- Chute, 59, was named dean of the me anymore,” he says. “It works every time; trust me.” fect your access to funding? Tell us at See EXECUTIVE MOVES on Page 46 —miriam kreinin souccar www.crainsnewyork.com/execinbox.

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RÉSUMÉ REVIEW Flight cleared for takeoff Is your job search all it could be? We ask the experts. people,and we know that.Our posi- were back in 1982.And now you can NAME JOSEPH DEMARIE Delta chief on new tion is bigger than American Air- get almost anywhere in the world in SUMMARY JFK hub, biz travel, lines’ at JFK, but JetBlue is a very one stop. It takes a lot of gas to oper- A recent college graduate with a finance well-run airline. We have to com- ate a big airplane.It’s expensive.And and banking background pete hard in this market every day. as far as rates, we have a consumer and those nasty fees PROFESSIONAL EXPERIENCE product-like transparency. You can  What’s in it for the business traveler? go on the Internet, and all of us are J.P. Morgan Chase, 2009-2010 BY HILARY POTKEWITZ We’ve dedicated 8.5% of our seats to right there on the same shelf. Personal banker frequent fliers, and we have more Developed strong customer base through effective communication and elta air lines will first-class seats than any other air- How did Delta come out of attention to detail; utilized aggressive sales techniques to cross-sell and break ground on a $1.2 line because we’ve learned that it’s the financial crisis? deepen customer relationships billion home at John F. not just about mileage redemp- It was a tough time for everyone;I’m  Marsh & McLennan, Des Moines, Iowa, 2009 Kennedy International tions—it’s about getting upgraded not going say it wasn’t. One day we Customer service specialist DAirport this fall.The Atlanta-based to first class. The rate of our elite woke up and our revenues had Communicated effectively to give foreign customers detailed instruction carrier recently named the Big Ap- passengers getting upgraded to first dropped by $6 billion from Decem- on complex insurance issues ple one of its five main hubs and is class is 90%. We’re still the most ber of ’08 to June of ’09. And that  Sauer-Danfoss, Ames, Iowa, 2007-2008 waging a campaign to surpass Con- popular loyalty program in the was after H1N1 and after oil went Marketing intern tinental Air- world,and even during the recession up to $100 per barrel. But we cut Designed and created a database cataloging and reporting distribution lines as the we continue to see growth. Not more capacity than any other carri- sales across the Americas No. 1 carrier many industries can say that. er, and cut it fast. I’d say June of ’09 EDUCATION in the area by was the bottom, and since then MOVERS & passengers. Rising ticket prices and fees are we’ve had positive cash flow. Busi-  Iowa State University, B.S., finance, 3.7 GPA, magna cum laude SHAKERS Chief Execu- angering consumers. What do you ness travel, which is important for Résumé appears in condensed form. tive Richard say to that? New York,is up 60% year-over-year. EXPERT ADVICE Richard Anderson What we’re forgetting is opened up that in real terms, air- Do you fly a lot? Joseph would benefit from a concise summary of qualifications at the top, Anderson about cranky fares are half what they I fly just like everybody else. I which will help recruiters scan his résumé. He should also quantify more travelers, travel about 100 days a year points in his résumé and focus on the results of his work in order to the recession and fly internationally about differentiate himself from others. It’s good that he highlighted his GPA of and flying coach. once a month.I don’t travel in- 3.7—that is impressive. It’s OK to mention GPA because he just graduated cognito—I wear my in 2009. He should also be more specific and describe anything recruiters Why the sudden focus badge. And I always may not understand. These little things set you apart from the on New York? travel coach.
competition—it’s what you must do in this market. We’ve designed our network —connie thanasoulis-cerrachio, to feed our operations at career services expert, Vault.com JFK—to feed our interna- To contact this candidate or to be featured in “Résumé Review,” e-mail us tional flights. You have a lot at [email protected]. of choices here. New Yorkers are very independent-minded

bloomberg news EXECUTIVE MOVES Stroock & Lavan. vice president of research and insights WNET.ORG: Roslyn Pythian: Gregg Kitaeff, 40, joined the Rosen Seymour Shapss Martin & Co.: for Bravo Media, Oxygen Media and Davis, 55, was database services company as director of Richard Koppel, 50, was promoted to Women at NBCU. promoted to general sales for the New York region. He was Continued from Page 45 principal from manager at the Murray Hill Properties: David Greene, 46, manager of Thirteen vice president of sales at Logicworks. School of Health Professions. She was accounting and consulting firm. was promoted to president of brokerage from managing Jefferies: Kamlesh formerly dean of the School of Health Alyssa Rosenbaum, 57, was promoted to services from executive managing director at the public Bhatia, 41, joined the and Natural Sciences at Mercy College. principal from manager. director at the commercial real estate media parent investment bank as a AdGenesis: Michael Jones Day: Fiona Schaeffer, 41, joined the services firm. company. managing director in Kelley, 46, joined the law firm as a partner in the antitrust and Bret M. Varricchio, 31, joined as a Theatre Communica- its equity capital video advertising competition law practice. She was most managing director of leasing. He was tions Group: Kevin E. Moore, 44, was markets group. He network as chief recently at Gotshal & Manges, where formerly a managing director at Coldwell named managing director. He was was most recently with marketing officer, a she was a partner in the antitrust and Banker Commercial Hunter Realty. managing director at the Arizona Piper Jaffray, where he newly created competition group. CBS Television Theatre Company. was a principal in the position. He was most NBC Universal: Tony Stations: David Venable: James Nelson, 43, joined the law equity capital markets practice. recently at Cardinale, 41, was Friend, 54, was named firm as a partner. He was formerly co- Skanska USA: Ken Clausen, 37, joined Pricewaterhouse- appointed senior vice senior vice president head of the technology and sourcing the construction services firm as director Coopers, where he served as a partner of president of strategic of news for the group. practice at DLA Piper. of integrated design for the Mission advisory services in the entertainment insights for the He previously served William Russell, 40, joined as a partner. Critical Center of Excellence. He was and media sector. Women and Lifestyle as vice president and He was co-head of the technology and previously managing principal and Steptoe & Johnson: Cecelia Fanelli, 57, Entertainment news director at sourcing practice at DLA Piper. delivery manager for the Americas at joined the law firm as a partner. She was Networks. He was WCBS-TV. Linq3: Tom Shaheen, 57, was named vice EYP Mission Critical Facilities Inc. previously a partner at Stroock & formerly the senior H3 Hardy Collaboration Architecture: president of business development. He Jones Lang LaSalle: Ruby Hwang, 31, was Ariel Fausto, 39, was promoted to had been the executive director of North promoted to senior vice president from vice partner at the architecture and design Carolina’s Education Lottery. president at the real estate services firm. firm. He was formerly an associate. Comedy Central: Steve Pandora: CORPORATE LADDER Ian Geller, 35, was promoted to John Fontillas, 44, was promoted to Grimes, 42, was named vice president of business development partner from senior associate. senior vice president at the Internet radio service. He had SEASONED CFO MOVES Geoff Lynch, 40, was promoted to of digital media. He been director of business development. partner from associate. was most recently at Park River: Thuyha Pham, 30, was named TO GETTY IMAGES The Boston Consulting Group: Marshall Topps, where he partner and chief executive at the BART CATALANE will assume the position of chief Lux, 50, was named senior partner at the served as vice boutique real estate services firm. She financial officer at Getty Images Inc. after spending management consulting firm. president and chief was previously a business development more than 25 years in financial and operations Previously, he worked at J.P.Morgan digital officer. executive at Vinacapital. Chase, where he served as chief risk Kleinberg Kaplan Wolff & Cohen: Moxie Interactive: Andrea Kerr Redniss, management. Mr. Catalane, 53, has worked in senior officer for consumer businesses. Jonathan A. Ain, 36, joined the law firm 32, joined the advertising agency as vice management positions with numerous media Vault.com Inc.: Tara McCaffrey, 37, was as a member. He was formerly a president and group media director. She companies, including TMP Worldwide, the television and radio broadcast appointed vice president of marketing at shareholder at Greenberg Traurig. was previously at Zenith Optimedia, divisions of Capital Cities/ABC and Webloyalty.com, where he worked most the career information provider. She Jason T. Polevoy, 38, joined as a member. where she was senior vice president. recently and served as chief financial officer. He started his career as a most recently served as senior director of He had been a partner at McDermott —maia blume certified public accountant and staff auditor at Coopers & Lybrand, and consumer marketing at LexisNexis. Will & Emery. Music Choice: Mike Corry, 34, joined DoubleVerify: Jennifer Hyman, 33, joined EXECUTIVE PROMOTIONS moved into the Internet and innovative media space. Getty Images is a the video and music network as director the online advertising verification firm The fastest way to get an announcement into privately held company that was acquired by Hellman & Friedman in 2008. of advertising sales. He was formerly an as vice president of marketing. She was Crain’s is to submit details online. Fill out the form —MAIA BLUME account executive at Comcast formerly at Google, where she served as at www.crainsnewyork.com/submit. The Networks. head of YouTube marketing. Executive Moves column is also available online.

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/ MIND YOUR INSATIABLE CRITIC flickr.com Gael Greene BUSINESS we’ve got your back end* Old World travels: * Hint: You don’t have to choose between productivity, security, and compatibility going Dutch FREE APPLE BUSINESS EVENTS AT Chef, patron try cuisine Join us for advice, tech tips & best practices to grow your business of Nether regions; Thursdays at Tekserve at Noon, 2, 4 and 6 p.m. (6 p.m. sessions begin with networking reception) bitterballen, anyone? September 23 Surveillance Technology September 30 Solutions for Retail Stores like the idea of a gin bar. October 7 & 14 Advertising, Graphics and Design Solutions And I was curious to explore October 21 Solutions for Real Estate Professionals Dutch cooking. I imagined October 28 Building a Paperless Office - Document Management Solutions walking into Vandaag on the November 4 Tekserve Solutions for Any Small Business Lower East Side, ordering a flight of different gins and pairing I buck ennis them with … here my imagination DUTCH LOVIN’: Hete bliksem potatoes For more info and to register visit: tekserve.com/meansbusiness faltered. All I know of the Nether- lands is tulips, Edam, Anne Frank and Vincent van Gogh. I supposed VANDAAG there would be potatoes. 103 Second Ave. 119 W 23rd St., NYC | 212 381-6381 And there were: weird and fabu- (212) 253-0470 MEANS Expert advice, Apple products and full-service tech support for business lous hete bliksem, crisp fingerlings www.vandaagnyc.com BUSINESS with bacon, apple and caramel-like stroop.“If I did it the authentic Dutch way,it would have been boring,”chef CUISINE Dutch/Danish-inspired Apple, the Apple logo, iPhone, iPad, Mac OS X, iWork, iLife, and Mac are trademarks of Apple Inc., registered in the U.S.and other countries. Phillip Kirschen-Clark confides. PRICE RANGE Entrées $15-$28 “But it does mean ‘hot lightning,’ so I added citrus and cayenne.” SERVING Breakfast, lunch, Starting in Venice,Calif.,at Rock- dinner; closed Monday enwagner, and after stints in French, RESERVATIONS Preferred Italian and American star kitchens, Kirschen-Clark knew little about NOISE LEVEL Bearable Dutch cooking when Vandaag called. I can’t wait to return. He spent several days in Holland “to see what products they used.” I will definitely go back. Amsterdam’s chefs, like hip I’ll let them simmer awhile. whisks everywhere, are into global NO HATS Never again. trends and updating their cuisine. So Kirschen-Clark is committed to gin and aquavit, barley and pickles, know we’ll like on the modest list of aged gouda and bitterballen (slow- items I’ve never seen anywhere braised oxtail croquettes), distilled else—the whole-globe artichoke through a fusion of his own taste and vinaigrette being a pleasantly retro experience.The menu is Dutch and exception. I notice we’re shying Danish, with a few French refer- away from provocations like red ences tossed in, and a farm-to-table Russian kale with green strawber- philosophy. ries or chilled cucumber soup with I expected a more old-fashioned pickled cantaloupe and smoked eel. gemütlich ambience—dark paneling, Clams poached in the shell sit in perhaps, pewter, possibly even giant a puddle flavored with aquavit,vanil- sunflowers, something Vermeer— la and aleppo pepper, under a tassel not this bright, clean, uncrowded of parsnip frites.They’re bigger than look, almost like a luncheonette. the advertised littlenecks and per- When a restaurant has the nerve fectly cooked,as is a mammoth pork to charge for bread, I figure it must chop: juicy and rarish, served with be special. Vandaag’s own bakery toasted barley and black mission figs turns out lush, cakey breads— stewed in mead. Fusion comfort. semolina with dried fig and car- The guinea hen for two sits on damom, pumpernickel crisps with smashed fingerlings in a baking fennel seeds—“all made with flour dish,with chopped dandelion greens from organic local grain,” the chef alongside. The confited legs are says.The $6 basket comes with mar- served separately on toast with ba- velous gin butter and a lentil spread tons of radish.I love the bird’s lemo- with garlic, sumac and sherry vine- ny aura, but I’m not a white-meat gar. The $5 seasonal pickle pot sur- fan; ultimately,this breast is too dry. prises, with tiny okra, cucumber We all settle for a single dessert: sticks and fat summer cherries. the spicy apricot and ginger cake Our server seems discombobulat- with cuts of apricot, fresh and dried, ed. She delivers the amuse-bouche and lemon verbena sorbet with just of sprightly cuttlefish after our bar a hint of salt. The desserts are snacks:nutty popped barley and cuts Kirschen-Clark’s, too, and I like his of smoked pickled sausage,standing taste for measured sweetness—if up in a glass like raw carrot sticks.She not in the potato’s stroop sauce, at returns to announce that the kitchen least in the finale. has run out of lamb sweetbreads. The four of us are torn between Copyright © 2010 by Gael Greene. adventure and finding a dish we Syndicated by www.insatiable-critic.com.

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