Crain's New York Business

Home , Amazon HQ2, Culture of New York City

CRAINSNEW YORK BUSINESS

NEW YORK BUSINESS® NOVEMBER 12 - 18, 2018 | PRICE $3.00 PRIMED FOR AMAZON HQ2’s anticipated arrival in Long Island City is a big win for New York’s thriving tech sector PAGE 8

VOL. XXXIV, NO. 46 WWW.CRAINSNEWYORK.COM SPECIAL PHILANTHROPY ISSUE How nonpro ts are using data analysis to ful ll their mission P. 12 Storied opera company gets boost from big donors P. 22 CUSTOM CONTENT 2018 Giving Guide P. 16 NEWSPAPER

P001_CN_20181112.indd 1 11/9/18 6:37 PM NOVEMBER 12 - 18, 2018 CRAINSNEW YORK BUSINESS

CONFERENCE CALLOUT IN THIS ISSUE

DEC. 5 3 EDITORIAL Some advice for Albany: CRAIN’S 2018 BUSINESS Think rst, regulate later BREAKFAST FORUM 4 IN CASE YOU MISSED IT Andy Byford will discuss his plan Why Macy’s has a reason to x the subways and buses to give thanks this season and his ideas for reforming the culture of New York City Transit. 6 POLITICS Power shift in House spells opportunity for NY; recalling P. a CEO with a dodgy legacy 22 8 REAL ESTATE FEATURES How Long Island City checked all of Amazon’s boxes; 22 HITTING A HIGH NOTE After a 25-year slide, the opera ANDY BYFORD, what it means for the future president, New of NYC tech business has found its voice York City Transit 10 VIEWPOINTS 26 SNAPS A back-to-the-future remedy Photos from the city’s biggest for the city’s affordability crisis fundraisers and charity events 12 NONPROFITS CORRECTION More organizations embrace NEW YORK data-driven decision making Fisher Brothers Management Co.’s gures ATHLETIC CLUB for city employees and square footage under 8 to 9:30 a.m. 13 THE LIST management were misstated in the list of CrainsNewYork.com/ The metro area’s largest the largest commercial property managers, events-BKByford2018 foundations and nonpro ts published Oct. 29.

Vol. XXXIV, No. 46, NOV. 12, 2018—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues Jan. 1, June 25, July 9, July 23, Aug. 6, Aug. 20 and Dec. 24, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire

POSITION YOURSELF FOR EXCELLENCE

30th and 31st tower floors available New high-end innovative pre-builts A total of 22,578RSF, with the option to divide Ranging from 2,894RSF - 6,475RSF

• Class A office tower with a premier Fifth Avenue location • High-end design and finishes • Sweeping river-to-river views, abundant natural light • Move-in condition • Column-free efficient layouts • Landlord may consider build-to-suit 100% commission paid on lease execution

Barry Zeller Haley Fisher Jonathan Fales Michael Tranfalia Pierce Hance 212.841.5913 212.841.7892 212.841.5989 212.841.5981 212.841.7641 www.650FifthAvenue.com

Untitled-9 1 9/13/18 2:56 PM

2 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 12, 2018

P002_CN_20181112.indd 2 11/9/18 5:43 PM NOVEMBER 12, 2018

AGENDASome advice for Albany’s new rulers: Think first, regulate later

he New Year cannot come soon enough for state Senate Dem- ocrats, who will take control of the chamber for the rst time since four rogue members fractured their short-lived majority in 2010. e conference won’t be as dysfunctional this time, Tas three of the traitorous four have been convicted, and the fourth now serves on the City Council. Its membership will be larger and, mindful of past dramas and a shi ed political landscape, won’t defect to the Republi- can side or (initially at least) engage in wholesale corruption. at means the new Senate majority actually might focus on governing come January. And that is a concern in its own right. For years Democratic legislators have been talking up an agenda without having to gure out if it would work, because they did not have the power to pass it anyway. Now they do. Take single-payer health care: e Assembly has repeatedly passed it, knowing it would die in the Senate. But some incoming senators cam- it creates 2.5 million arbitrary winners and 6 million losers in New York paigned on the issue and will push for a vote, despite Gov. Andrew City. Or they say rent control on all dwellings would make every tenant Cuomo’s view that single-payer could work only on a national basis. a winner—which is like saying price controls on food would eliminate Supporters call it “Medicare for all,” ignoring that Medicare patients hunger. Bread lines, anyone? Why not regulate restaurants’ menu prices are e ectively subsidized by the privately so New Yorkers can a ord to eat out every insured patients who would cease to exist Forget campaign promises and night? Legislators who understand why that under single-payer—slashing hospital bud- is no solution should realize why rent regu- gets and doctors’ pay. Opponents omit that political posturing. You cannot lation isn’t either. the tax increase it requires would be o - regulate your way to utopia Markets work if you let them. If health set by private-insurance costs going away. care and housing were treated like other con- And no one will concede that absent high sumer goods, providers and landlords would deductibles or copays and the denial of claims by insurers, people will be compete on price and service to supply them. It is crucial that lawmakers apt to seek more health care than they need, driving up costs and wait consider what incentives will result from every policy, because incentives times for care. Medicare fraud likewise would grow as the system expands. are what people respond to in the real world. You cannot regulate your Inconvenient facts and rhetoric also abound on a Democratic goal more way to utopia. Albany’s new power brokers must forget campaign prom- likely to be met: expanded rent regulation. Advocates won’t acknowledge ises and politics. Follow the evidence and do what works. — THE EDITORS

FINE PRINT Exit polling from last week’s election illustrates a polarization among New York voters. Per CNN, 58% of white men voted for GOP gubernatorial nominee Marc Molinaro, whereas 54% of white women went with Andrew Cuomo. And among minority voters, 84% selected Cuomo, who wound up winning his re-election bid by 22 points.

BY GERALD SCHIFMAN STATS RIDING THE BLUE WAVE STATEWIDE VOTER TURNOUT surged in last week’s election, 25 WORDS OR LESS elevating Democrats. AND THE CITY Voter turnout in the state, 12.4 % percentage points higher than for “I’ve been very outspoken 45.6 the 2014 midterm election about my differences Votes cast for the 11th Congressional District with him. So I would not race to represent Staten Island and parts of 183K southern Brooklyn, up 65% from 2014 be surprised if he had a Democrat Max Rose’s chances of winning deep resentment toward % that race, according to modeling based on 20.3 polls. Rose won by 6 points over the city’s me. Very justi ed” lone GOP House member, Daniel Donovan.

—Gov. Andrew Cuomo speaking of Number of state Senate seats won by Democrats President Donald Trump on The Capitol in formerly Republican-led districts, giving them Connection radio show 8 control of all arms of state government

SOURCES: State Board of Elections, Gotham Gazette, FiveThirtyEight GOVERNORANDREWCUOMO/FLICKR, GETTY IMAGES

NOVEMBER 12, 2018 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20181112.indd 3 11/9/18 6:06 PM IN CASE YOU MISSED IT CRAINSNEW YORK BUSINESS president K.C. Crain senior executive vice president Chris Crain group publisher Mary Kramer

EDITORIAL Why Macy’s has reason managing editor Brendan O’Connor assistant managing editors Erik Engquist, to give thanks this season Jeanhee Kim, Robin D. Schatz copy desk chief Telisha Bryan ON’T LOOK NOW, art director Carolyn McClain but holiday shopping is just around photographer Buck Ennis the corner, and Midtown will be packed next week digital editor Gabriella Iannetta for the annual Macy’s anksgiving Day Parade. data editor Gerald Schifman D senior reporters Joe Anuta, Aaron Elstein, Everyone knows about the retailer’s struggles, but it has Matthew Flamm, Daniel Geiger much to be thankful for these days. Its stock price has more reporters Will Bredderman, Jennifer Henderson, Jonathan LaMantia than doubled this year as it has sold prime real estate, such digital fellow Lizeth Beltran as oors of its Brooklyn and Chicago stores, to strengthen the columnist Greg David balance sheet. e company has scrubbed about $2 billion in contributors Tom Acitelli, Cara Eisenpress, Cheryl S. Grant, Yoona Ha, Chris Kobiella, debt o its books in the past three years. Macy’s reports quar- Miriam Kreinin Souccar terly earnings this week, and investors will be keen to hear how LOOKING UP: to contact the newsroom: www.crainsnewyork.com/staff management sees the season shaping up. Holiday cheer seems Macy’s has nixed about $2 billion in 212.210.0100 likely, even with e-commerce looming as a constant threat. debt in the past 685 Third Ave., New York, NY 10017-4024 three years. e National Retail Federation expects spending to rise by ADVERTISING as much as 4.8% this year, higher than the 3.9% average of the www.crainsnewyork.com/advertise advertising director Irene Bar-Am, past ve years. “While there is concern about the impacts of an escalating trade war,” federation CEO Matthew Shay 212.210.0133, [email protected] said, “we are optimistic that the pace of economic activity will continue.” senior account managers Lauren Black, Rob Pierce, Stuart Smilowitz Shoppers are expected to whip out their credit cards because they are making more money and not worried account manager Jameson Roberts about layos. Year-over-year wage growth surpassed 3% last month for the rst time since the Great Recession, integrated marketing manager Jonathan Yan, 212.210.0290, [email protected] and the balance of bargaining power has tipped from employers to employees. For the past two months there have associate art director/marketing been 1 million more job openings than unemployed people for the rst time since the government started tracking Charles Fontanilla, 212.210.0145 [email protected] the data in 2000. at suggests wages will keep rising and lling pocketbooks—which is great for retailers, though sales coordinator Devin Arroyo, in the long run it could cause inationary pressures that force the Federal Reserve to push interest rates up again. 212.210.0701, [email protected] But that’s a challenge for another day. CUSTOM CONTENT director of custom content In the meantime, it’s time to start shopping for a turkey and planning where you’re going to watch the parade. Patty Oppenheimer, 212.210.0711, Here’s a pro tip: It’s warmer in your living room. — AARON ELSTEIN [email protected] custom project manager Danielle Brody, [email protected] EVENTS Not-so-easy Street DATA POINT physical abuse alleged by four women www.crainsnewyork.com/events Goldman Sachs is no longer handing this year. Nassau County’s district director of conferences & events GOODWILL COLLECTED MORE THAN out partnerships like candy. Under CEO attorney, Madeline Singas, appointed Courtney Williams, 212.210.0257, [email protected] David Solomon this year, fewer than 65 91,000 POUNDS OF SPORTSWEAR by Gov. Andrew Cuomo to investigate manager of conferences & events will be promoted, the smallest class since AT THE NEW YORK MARATHON NOV. Schneiderman, said “legal impedi- Ashlee Schuppius, 1998. In 2016, 84 bankers got the nod. ments, including statutes of limitations, [email protected] 4. THE NONPROFIT HAS COLLECTED preclude criminal prosecution.” AUDIENCE DEVELOPMENT Board move 863,000 POUNDS OF CLOTHING group director, audience development Citigroup’s board chairmanship will End of the line Jennifer Mosley, [email protected] DURING THE PAST SIX MARATHONS. remain separate from CEO Mike Cor- A month aer saying he would serve REPRINTS bat, who asked not to be considered for through 2021, MTA chairman Joe reprint account executive Lauren Melesio, the position. Independent board mem- Lhota resigned Nov. 9. In the past year, 212.210.0707 ber John Dugan takes over Jan. 1 for plans to accomplish cuts through attri- Lhota helped secure $800 million in PRODUCTION Mike O’Neill, who reached the board’s tion and the elimination of at least half emergency funding and appointed production and pre-press director mandated retirement age of 72. the company’s dozen-plus verticals. a new executive team led by Andy Simone Pryce Vice currently has 3,000 employees. Byford. Fernando Ferrar was named media services manager Nicole Spell Car talk acting chairman. — CHRIS KOBIELLA SUBSCRIPTION CUSTOMER SERVICE Continuing a $25 million tra c-safety Out of stream www.crainsnewyork.com/subscribe pilot program begun in 2015, the city Defy Media has pulled the plug on itself, [email protected] plans to outt up to 8,000 vehicles with leaving its popular YouTube channels, 877.824.9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or $99.95 technology that communicates with including Smosh and Clevver, in pro- one year, $179.95 two years, for print other vehicles, roadside sensors and duction limbo and searching for new subscriptions with digital access. tra c signals. Yellow cabs, MTA buses, studios. e company, founded in 2008 Entire contents ©copyright 2018 city sanitation vehicles and UPS trucks as Break Media, merged with Alloy Crain Communications Inc. All rights are slated to receive the upgrade. Digital to form Defy in 2011. reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license Carton of bilk Revving up search engine agreement. Craig Carton, former co-host of Google is working on a deal for a CRAIN COMMUNICATIONS INC. WFAN’s Boomer and Carton sports- 1.3 million-square-foot building to be chairman Keith E. Crain radio show, was convicted of securities developed at the St. John’s Terminal vice chairman Mary Kay Crain Kubrick on the block president K.C. Crain fraud, wire fraud and conspiracy to in the West Village. According to the senior executive vice president Chris Crain commit fraud, stemming from a con- plan, Oxford Properties Group would A long-lost lm script for Burning secretary Lexie Crain Armstrong cert ticket-selling scam. Carton is look- convert a 4-story building to a 12-story Secret, which Stanley Kubrick editor-in-chief emeritus Rance Crain ing at up to 45 years in prison. o ce tower, expected to be ready for wrote in 1956, is scheduled to be chief nancial of cer Robert Recchia occupancy in 2022. auctioned Nov. 20 by Bonhams. founder G.D. Crain Jr. [1885-1973] Tighter Vice grip The screenplay was rejected by chairman Mrs. G.D. Crain Jr. [1911-1996] Vice Media, which lost $100 million Short arm of the law MGM. The auction house expects last year, said it will reduce its sta by Former Attorney General Eric Schnei- it to sell for about $20,000.

GETTY IMAGES up to 15%. New CEO Nancy Dubuc derman will not be charged for the

4 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 12, 2018

P004_CN_20181112.indd 4 11/9/18 6:10 PM It should be easier to focus on your mission. Outsource your ﬁ nance & accounting with BTQ Financial.

THE NATION’S BTQ FINANCIAL OFFERS PREMIER PROVIDER OF customized fi nancial outsourcing services to meet the fi scal and accounting needs QUALITY, AFFORDABLE of non-profi t organizations. We achieve FINANCIAL MANAGEMENT the highest industry standards of internal SERVICES TO THE controls and transparency for fi nancial NON-PROFIT SECTOR. operations, allowing our non-profi t clients to focus on their missions and delivery of services. Learn more about our services at www.btqfi nancial.com.

80 BROAD ST, NEW YORK, NY [T] 212–901–2500

FINANCIAL [E] [email protected]

CN018904.indd 1 11/7/18 12:19 PM POLITICS

Power shift in House spells opportunity for New York Democratic control could bring more dollars to fund city priorities BY WILL BREDDERMAN

ew York City is in the Particularly important to New York migrants and new ar- House—the House of Rep- are the money pots of the Department rivals from other states resentatives, that is. of Housing and Urban Development, and countries. Such an For nearly a generation, including those that fund operations undercount in 2010 cost Nthe Big Apple has depended on its lone and repairs at the ailing New York City New York two of its 29 GOP representative from Staten Island Housing Authority and Community House seats, weakening VELAZQUEZ pledged to steer her committee to bolster and sympathetic Long Island Republi- Development Block Grants, which al- its inuence in Wash- minority-owned businesses and improve resiliency. cans to advocate for its priorities in an low the city to nance an array of pub- ington, as well as pop- otherwise hostile House majority. But lic amenities. ulation-based federal a er Democrats won a majority of the “It’s one of the funding streams where allocations. York City, pointed out that the business chamber’s seats in last week’s election, the money comes directly from the fed- BUSINESS PROGRAMS. Rep. Nydia community would benet enormously the city’s entire delegation will now be eral government to cities,” said Matthew Velazquez, whose turf spans Lower from the modernization of air- trac part of the dominant caucus, with three McNally, director of Mayor Bill de Bla- Manhattan and parts of Brooklyn, will control. Planes ying in and out of of the 12 members set to chair power- sio’s Federal Aairs Oce, “rather than chair the Committee on Small Business. the metro area still rely on 1950s-era ful committees and two others in line through some other entity.” In a statement, Velazquez noted that ground-based radar, which does not to helm important subcommittees. Also big for New York are two De- nearly half of New York City business- pinpoint their location, prompting con- Moreover, Rep. Nita Lowey, a closely partment of Transportation initiatives es are owned by the foreign-born, and trol towers to space them farther apart allied Democrat from Westchester, will that the House funds in conjunction she pledged to help make Small Busi- than necessary—limiting much-needed lead the Committee on Appropriations, with the Senate: road-improving Build ness Administration loans and grants capacity and wasting travelers’ time. which oversees federal spending bills. grants and Capital Investment Grants, more accessible to minorities, veterans Both the Obama and Trump ad- As a result, the city is poised to enjoy which can bolster mass transit. and immigrants. Given the diculty ministrations have favored switching an array of opportunities, according to CENSUS CONSENSUS. Bronx Rep. businesses in ood zones had recov- to a satellite-based global positioning experts consulted by Crain’s. Here are Jose Serrano will head the Subcommit- ering from 2012’s Superstorm Sandy, system, which many other industrial- four key ones. tee on Commerce, Justice, Science and she said, she also wants to streamline ized countries use, and Wylde said the MORE FUNDING. Washington no lon- Related Agencies, a subset of Lowey’s disaster-response programs. private sector could pay for most of ger allows earmarks—cash for specic appropriations panel. It dra s import- In the event President Donald the multibillion-dollar enhancements. projects and initiatives—in spending ant spending plans, including for the Trump makes his promised infrastruc- She endorsed a Trump-backed propos- bills. In their place, the House and the 2020 Census. ture package a reality, Velazquez indi- al that would move air-trac control Senate allocate funds to grant programs e city has long feared that Wash- cated she would use her committee’s from the Federal Aviation Administra- to which municipalities can apply for ington Republicans would allocate authority over federal contracts to al- tion to a nonprot corporation. Not all money to pay for specic projects, such insucient funds to the 10-year head- low more small rms to participate. Democrats view this notion favorably. as the Gateway train tunnel under the count, causing it to miss many New AIRPORT EFFICIENCY. Kathryn Wylde, But they might be open to increasing Hudson River. Yorkers, especially undocumented im- president of the Partnership for New the FAA’s budget. ■

IN THE MARKETS A CEO who left a legacy of porn and prostitutes Feds extract $143M from estate of cartoonishly rogue businessman

don’t care about losing all the ensuring that crime does not pay,” U.S. Room. e entertainment money,” Bernadette Peters Attorney Richard Donoghue said in included Aerosmith, 50 lamented in the cinematic classic a statement. Cent and Tom Petty. e Jerk. “It’s losing all the stu.” Brooks was such a rogue CEO that Mostly, though, he IDavid Brooks could relate. he could be mistaken for a cartoon bought a whole lot of He was the CEO of a body- villain. His crime spree began a er he stu including a Bentley armor manufacturer who assem- founded DHB Industries, a publicly Continental Flying Spur; PARTY’S OVER: Brooks, with co-defendant Hat eld, died bled an impressive collection of stu, traded defense contractor whose bul- a Ferrari 612 Scaglietti; two years ago, but the government is not done with him. including a replica of the letproof vests used in Iraq and 3,500 Krugerrands; a belt Wall Street Charging Bull Afghanistan turned out to be buckle studded with dia- statue near Bowling Green, so shoddy that they couldn’t monds, rubies and sapphires; and two Switzerland so they could hide assets in before he was convicted stop a small-caliber bul- daggers adorned with pavé diamonds. safe-deposit boxes. In 2010 a jury con- of fraud. Last week federal let. In 2005 the government He also looted his company to pay victed him on all counts. A year later prosecutors in Brooklyn launched a recall. Brooks for plastic surgery for his wife, por- he pleaded guilty to tax evasion. He announced that $143 mil- cooked the books to cover up nography for his son and prostitutes was appealing the jury verdict when lion worth of Brooks’ pos- the trouble, lied to auditors for his employees. (His attorneys he died in prison two years ago at age sessions had been seized and and sold $185 million worth argued that paying for ladies of the 61, so that conviction was vacated. But would be used to help pay AARON ELSTEIN of DHB shares before they night could “motivate his employees the tax-evasion conviction survived, restitution to the thousands collapsed. Sandra Hateld, and make them more productive.”) and the government used that as lever- of investors he victimized. the COO, was also charged. e law nally caught up with age to reach a settlement with Brooks’ e civil forfeiture is the largest such Around the time the FBI began Brooks in 2007, charging him with estate and family members. recovery by the Eastern District. sning around, Brooks dipped into 14 counts of fraud and obstruction of e family gets to keep some of his “Our oce remains dedicated to his company’s coers to pay for his justice. Before trial, he violated his bail stu, by the way, including the belt

BUCK ENNIS, DAVID HEISCHREK/ U.S. ATTORNEY’S OFFICE FOR THE EASTERN DISTRICT OF NEW YORK, BLOOMBERG NEWS HEISCHREK/ U.S. ATTORNEY’S BUCK ENNIS, DAVID vindicating the rights of victims and daughter’s bat mitzvah at the Rainbow agreement by jetting with his family to buckle and daggers. ■

6 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 12, 2018

P006_CN_20181112.indd 6 11/9/18 5:55 PM CN018892.indd 1 11/6/18 1:00 PM REAL ESTATE

BENEFICIARIES AND BUSTS

WINNERS Why Long Island City PLAYED KEY ROLE THE CITY’S NEW in developing the applied-sciences checked Amazon’s boxes winning response graduate school to Amazon’s RFP. was founded with Queens enclave is a natural—if unlikely— t BY DANIEL GEIGER AND JOE ANUTA Her BID would get a the idea of attract- giant new member. ing companies mazon’s impending choice of housing and growing array of ameni- Elizabeth Daniel such as Amazon. Long Island City as home to ties, including restaurants, retail shops Lusskin, presi- Huttenlocher, Now they could dent, Long Island half of its much-hyped HQ2 and cultural destinations. dean, Cornell be neighbors. City Partnership Tech is a huge win for New York e neighborhood is also just a Aand its burgeoning tech sector. But the subway stop away from Cornell’s new RALLIED NEW YORK’S POINT PERSON e-commerce juggernaut is not the rst tech campus on Roosevelt Island, business commu- for the city on its big company to put down stakes in the which could provide a feeder for talent nity and raised biggest job-creating Queens enclave. and ideas for Amazon. the pro le of the deal in memory. In 1990 Citibank completed 1 “e proximity to Cornell Tech is city’s pitch to the Economic devel- Court Square, a 49-story, 1.5 million- very compelling,” Weisbrod said. e-commerce giant opment of cials square-foot tower, to create low-cost Kathryn Wylde, with a detailed James Patchett, elsewhere are now space for back-oce workers. It plans ROOM TO GROW president and account of the president, NYC eating their heart to move out of the bulk of the building While Long Island City has under- CEO, Partnership metro area’s assets. Economic Devel- out. next year. gone a wave of high-rise residential for New York City opment Corp. In 2001 insurance giant MetLife construction in the past decade, few relocated its headquarters to Queens neighborhoods so close to the city’s WHO KNOWS WHAT NEW YORK’S of cial Plaza North only to return to Midtown core feature such a big, blank canvas else he promised advocate for tech, ve years later. for large-scale commercial and mixed- besides changing she represents an But most experts agree that Ama- use development. his name to Ama- industry that could zon’s arrival marks a paradigm shi. e area boasts several sites and zon, but he could soon be less of a “Economic development in the out- vacant parcels that oer the tech giant have a story to tell distant second to er boroughs used to be driven by low the chance to build millions of square Andrew Cuomo, about job growth Julie Samuels, Silicon Valley. costs,” said Seth Pinsky, an executive feet of state-of-the-art space from governor that might come in Tech: NYC vice president at RXR Realty and for- the ground up. According to several handy later. mer president of the city’s Economic sources, Amazon is already focused Development Corp. “Amazon is likely on a large waterfront site in the neigh- LOSERS to get tax breaks, but it also represents borhood, owned by plastics company SLAMMED AMAZON VIEWS TECH FIRMS a shi where companies are actively Plaxall, along with a nearby site owned as a monopolist as gentri ers that that kills small drive up rents, push choosing to be in Long Island City for by the city. businesses, only to out poor people everything it oers.” e family that controls Plaxall had see it head for his and don’t hire Landing one of the world’s biggest been seeking to rezone the 15 acres borough (and likely minorities. Time businesses suggests the neighborhood surrounding Anable Basin to allow for prove him wrong). will tell if that holds is nally ready to shed its reputation the construction of mixed-used devel- Ron Kim, Jonathan Westin, assemblyman NY Communities true for Amazon. as a second-tier, discount destination. opment, including about 5,000 apart- for Change e $800 billion company is expected ments and a new waterfront esplanade to bring 25,000 jobs, build millions of that would border the basin. Striking square feet of commercial space and a deal with Amazon could revise the invest billions of dollars to put LIC plan to include millions of square feet not result in any serious rent increases. utilizing the city’s Industrial and Com- on par with cutting-edge oce desti- of oces, along with the housing. Home prices in Queens, on the other mercial Abatement Program. nations such as Hudson Yards and the To ful ll its immediate need for hand, have been on the rise. And even e remainder of any tax burden World Trade Center. roughly 500,000 square feet by next though there are signs a market slow- could be reduced or essentially elim- “One of the great things about Long year, Amazon is rumored to be in talks down is looming, Grant Long, senior inated if the city or the state allows it Island City—even better than Hudson to take some of the space Citibank is economist at listings website Street- to make so-called payments in lieu of Yards—is the transit,” said Carl Weis- shedding at 1 Court Square. Easy, said news of Amazon’s arrival taxes, or pilots, which divert would-be brod, a senior adviser at HR&A Ad- could put more pressure on prices, es- tax payments to cover costs such as visors and former director of the De- QUALITY HOUSING pecially in lower-density areas such as infrastructure improvements or even partment of City Planning. Given its e neighborhood has been a hot Astoria and Sunnyside, and draw the building Amazon’s oce properties. combination of residential, commer- spot for new development since the attention of speculators. e company also may be able to cial and industrial developments, he city’s latest real estate boom kicked cut its tax burden through the city’s added, “this neighborhood has exactly o in the wake of the Great Recession, AMPLE TRANSIT Relocation and Employment Assis- the kind of mixed uses that we end up and there are many more units in the Several subway lines cross through tance Program, which grants compa- relishing.” ong that could provide workers with the neighborhood, most notably the nies a $3,000 annual credit for every It also happens to have checked all new homes at less-than-in-Manhattan 7, for which signal improvements are employee that moves to designated ar- of Amazon’s boxes. prices. scheduled to be completed soon, eas- eas, including Long Island City, for up Since 2010 more than 10,000 apart- ing some of the overcrowding issues to 12 years. e state’s Excelsior Jobs ACCESS TO TALENT ments have been constructed in the that have plagued the line by boosting Program also could be in play, provid- Atop Amazon’s HQ2 wish list was neighborhood. And data from Nancy the number of trains that can operate. ing tax breaks for hiring, research and proximity to a deep pool of talent. Packes Inc. show that there are near- e line also provides a direct link to development. With the city’s tech sector in ma- ly 6,500 more market-rate rentals and the 360,000 square feet Amazon re- “Companies that are willing to be jor growth mode, it will be poised to more than 1,000 condos in the pipe- cently leased to house 2,000 employees the pioneer in a neighborhood are poach workers from big tech rms line in the next two years. at 5 Manhattan West in Hudson Yards. the ones that usually get the best eco- such as Facebook and Google, which Market-rate rents have been at or nomic deal,” said Mary Ann Tighe, also have expanded dramatically in declining citywide because of a glut of GENEROUS INCENTIVES the New York CEO of CBRE who bro- the city, traditional companies such as supply. Eric Benaim, founder of Long Amazon likely will be able to cash kered groundbreaking lease deals for JPMorgan Chase and the myriad start- Island City–based residential broker- in on a slate of as-of-right incentives several large companies, including ups, such as Peloton, that have sprout- age Modern Spaces, said that if Am- to move to the neighborhood. If the Condé Nast’s relocation to the World ed here. azon attracts new people to the area, company does build commercial of- Trade Center and Coach’s move to A Long Island City campus could it could be a boon for local landlords, ce space as expected, it will be able anchor the rst oce tower built in prove a compelling lure for workers who will need to ll new projects, but to avoid paying most of the property Hudson Yards. “If you go rst, you get

CORNELL TECH, BUCK ENNIS, GOVERNORANDREWCUOMO/FLICKR, WIKIPEDIA, NEWSCOM thanks to its waterfront access, ample thanks to the ample supply, it would taxes that would otherwise be due by something for it.” ■

8 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 12, 2018

P008_CN_20181112.indd 8 11/9/18 6:49 PM Can Amazon dreams come true? News of the tech titan’s expected arrival in Long Island City has everyone thinking big BY MATTHEW FLAMM

he deal has not been nalized of engineering school Cornell Tech on Transportation experts, meanwhile, this kind of growth,” Wright said. or even announced, but word Roosevelt Island, one subway stop away. are wondering how all those folks will ere’s a push for that growth to that Amazon has chosen get to work. “If HQ 2.5 really is coming, include minorities, women and low- Long Island City for one of its Ripple effects there’s going to have to be a comprehen- income residents—groups notoriously Ttwo second homes has sparked delirium Local leaders said they hope the sive plan of transportation investments underrepresented at tech companies. across New York’s business community. 25,000 employees that Amazon could that the city should be negotiating with “Amazon presents New York with Not surprisingly, real estate prices hire will be more diverse than is typi- Amazon right now,” said Tom Wright, a real opportunity to create a tech and shot up overnight in the Queens neigh- cal for tech, and that the development CEO of the Regional Plan Association, innovation community that’s dierent borhood, as well as next door in Green- will drive long-sought improvements in the urban-planning think tank. from Silicon Valley,” said Jukay Hsu, point, Brooklyn. But the potential transportation infrastructure. He listed several projects including CEO of Pursuit, which trains under- impact of tech’s $800 billion gorilla bet- Most of all, they see a bustling center one long shot: extending the proposed served New Yorkers, as well as blue- ting part of its future on scrappy, mod- of commerce and innovation growing Gateway tunnel all the way to Sunnyside collar employees of tech companies, to est Long Island City goes far beyond out of projects that have been simmer- Yard, which would allow easier com- be soware engineers. “We don’t want improving developers’ bottom line. ing in the neighborhood for years. mutes from the Bronx and New Jersey. to [have] a huge divide between the Business leaders and others are hav- “It’s all going to grow together,” “A corporation as large as Amazon tech community and everyone else.” ing fever dreams of what the new cam- said Alan Suna, chief executive of will be looking both locally and region- Hsu’s organization has been work- pus could bring. And though Amazon’s Silver cup Studios, who worked on the ally for its workforce,” Wright said. ing with the New York City Economic original aim was to build a $5 billion Amazon proposal and one to attract a More immediately, he said, now is Development Corp. on creating the second headquarters for 50,000 work- city-supported life sciences complex. the time to build the Brooklyn-Queens Long Island City Innovation Center. ers, its decision to split the new venture Suna sees life sciences and Amazon Connector. e de Blasio administra- e 1.5 million-square-foot project, between Queens and Arlington, Va., tech workers mingling with graduate tion’s BQX streetcar would run along featured in the city’s pitch to Amazon, has hardly dampened their enthusiasm. students and faculty from Cornell Tech. the water from Astoria to Gowanus by is now expected to be part of the com- Amazon’s choice marks a crowning “When you add in the parks, the restauT:9.125”- way of Long Island City. pany’s complex in Long Island City’s achievement for eorts to build a tech rants and bars, they have a place to “It provides north-south transit Anable Basin, Crain’s has learned. sector that began under Mayor Michael bump into each other,” he said. “at’s access and would clearly be something “We’re really looking forward to Bloomberg and included the creation how these young people thrive.” you would expect to be part of plans for being a partner with them,” Hsu said. ■

LIGHTING FOR A CONNECTED OFFICE T:6.875”

Connect your of ce with secure network lighting solutions. Integrated lighting adjusts as needed to create a more energy ef cient workspace and maximize savings for your entire building.

NOVEMBER 12, 2018 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20181112.indd 9 11/9/18 3:22 PM HN15519_EDM273_M04_MAG.indd Created: 10-11-2018 12:03 PM 3_Final Path:Premedia:Prepress:•Con Edison:2018:15519_EDM273:Final:Prepress:HN15519_EDM273_M04_MAG.indd Modified:10-11-2018 2:03 PM Proof Job Description Mechanical Specifications Colors Font Families Contacts Initial Date

Billing#: HN15519 Artist: Johnny.Ho Cyan Futura Maxi Std (Demi; OpenType), Helvetica Neue LT Std Studio Manager H. WEINTRAB/M. JOHNSON Labor: HN15519 Previous: susana.marquez Magenta (55 Roman, 75 Bold; OpenType) Proofreader None Proofreading: HN15519 Bleed: None Yellow Print Producer I. WAUGH OOP: HN15519 Trim: 9.125” x 6.875” Black Account Executive None Tracking#: EDM273_M04 Safety: None Art Director None Client: Con Edison Viewing: None Copywriter None Brand: None Gutter: None Product: None Scale: None Media: mag Final Size9.125 x 6.875 Caption: LIGHTING FOR A CONNECTED OFFICE

Links Mode PPI Links Mode PPI Production Notes

CON_HN15519_EDM273_MO4_SW_V2.tif 300 ppi CMYK None CONED_LogoLockup_04092018_KO.ai

Please contact I. WAUGH at 212.886.4100 with any questions regarding these materials. This advertisement was prepared by Havas Worldwide NY at 200 Hudson Street, New York, NY 10013. VIEWPOINTS

A back-to-the-future remedy for the city’s affordability crisis Unfairly maligned, shared housing can meet New Yorkers’ changing needs BY MARIA TORRES-SPRINGER

n the past ve years, the de Blasio administra- distorts the housing market and con- tion has nanced a record number of aordable tributes to the city’s aordability crisis. EVERYONE EATS: homes—33,000 in the last year alone. But even at is why in Housing New York 2.0, The kitchen as we accelerated and expanded the mayor’s we didn’t just double down on aord- at a Starcity Ihousing plan to keep pace with urgent needs on the able housing, but we also set out to shared-housing site ground, we recognized that adding aordable units is introduce new tools and strategies to in San Francisco not enough. We also need a greater diversity of hous- meet the diverse housing needs of our ing to match New York’s shiing demographics. city. is must include revisiting past New York City’s population is at an all-time high. models—which is the reason the city While our count of dwellings is as well, it is still not is launching Share NYC, an initiative enough to accommodate the growing number of to explore how shared housing can be people who choose to live and stay in the reimagined. city. ere is also a fundamental mismatch Such housing is de ned between the existing housing stock and by the shared use of living the changing composition and demands of facilities, chiey kitchens and residents. For example, two-thirds of our bathrooms. It has a long his- households consist of one or two people, tory in New York and across yet studios and one-bedrooms are only the country and is very much 45% of the housing supply. intertwined with the growth of the city. At that they were substandard resulted in some of the is shortage of small apartments and its peak, it housed millions of New York- policies and practices that undermined the quality of their concentration in particular neigh- ers. From the large single-room-occupancy this type of housing and underestimated the need that borhoods make it much harder for single TORRES-SPRINGER hotels on the Upper West Side to the iconic it lled—and continues to ll today. adults living alone—who tend to be older Chelsea Hotel, shared housing allowed peo- While the number of shared housing units has and more rent-burdened—to get by. It also ple to establish a foothold in the city and plunged since the mid-20th century, we are seeing leads to unrelated adults rooming together in larger provided a stable, aordable place to live. renewed interest from cities across the country and apartments built for families. is may contribute to Historically, shared housing has provided critical beyond, particularly as the way people live and work the widespread misconception that there is a greater low-cost options for a variety of households, but the evolves. With the shared economy—from oce space need for apartments with more bedrooms. rise and fall of single-room-occupancy hotels resulted to transportation—growing and preferences chang-

BUCK ENNIS, STARCITY e mismatch between supply and demand in a stigma that unjusti ably persists today. Concerns ing, now is the time to look at how shared housing can be re-engineered to provide a novel solution to some of the challenges cities like New York face. ShareNYC looks to harness the knowledge and expertise of community-development organizations, architects, urban designers and planners, developers, construction rms and property managers to develop a new model of shared housing. It should strike a balance between providing IF OUR BEDS ARE long-term aordability—including for some of the city’s most vulnerable residents—and reducing construction costs while advancing innovative design FILLED, IT MEANS and management practices to make the most of the “shared” part of shared living. rough this learning, we are looking to create a wider array of quality housing options at every income WE’VE FAILED. tier and in a range of neighborhoods to increase eco- Mount Sinai’s number one mission is to keep people out of the nomic diversity, attract and maintain a diverse labor hospital. We’re focused on population health management, as pool and increase household access to a wider array opposed to the traditional fee-for-service medicine. So instead of of neighborhoods and communities. For New Yorkers already living in de facto shared housing, formalizing receiving care that’s isolated and intermittent, patients receive care such arrangements can provide safer, healthier and that’s continuous and coordinated, much of it outside of the traditional more stable alternatives with greater legal protections. hospital setting. It also can help the city assess a community’s infrastructure and service needs. It’s a sweeping change in the way that health care is delivered. New York City has been a leader in aordable And with the new system comes a new way to measure success. housing since the 19th century, designing early hous- The number of empty beds. mountsinai.org ing codes that established basic standards of hab- itability and safety while still facilitating low-cost construction, instituting rent control as early as 1920 and building some of the nation’s earliest public housing developments. e city is uniquely positioned to lead again, to apply the lessons of the past and bring this model into the future so that shared housing can once more play an important role in providing stable homes and opportunity for New Yorkers today and for generations to come. ■

Maria Torres-Springer is commissioner of the city’s Department of Housing Preservation and Development.

10 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 12, 2018

P010_CN_20181112.indd 10 11/9/18 11:33 AM An Advertising Supplement to Crain’s New York Business REAL ESTATE ON THE MARKET Long Island City’s new crop of hotels

If Brooklyn was once known as the borough of to the airports and Manhattan and everything churches, then Queens should be the borough of in between,” said Lusskin. “And many of the hotels. At least the Long Island City part of it. hotels are clustered along transit routes of one 176-room Aloft sort or another.” Cropping up among the massive new residential Long Island City- and office towers, hotels are the hottest growth Manhattan View Hotel development in Long Island City took off category in what is considered one of the city’s Hotel, open since around 2012, according to Preuss, and has not November 2016. most vibrant new residential neighborhoods. slowed down since. More boutique hotels like According to Liz Lusskin, president of the Long the Paper Factory and The Local are part of the Island City Partnership, the local business mix as development evolves away from mass improvement district, the area has 6,100 hotel market hospitality brands. rooms planned in addition to the 3,200 already in operation. Tourists are a big chunk of the clientele, but so are business travelers associated with Brokers Cushman and Wakefield have compiled “Absorption of all these rooms is going to be a big companies like JetBlue, headquartered locally, different numbers. Stephen Preuss, senior managing question mark over the next three to seven years,” or high-end artisanal manufacturers that are still director, puts the numbers at 2,800 hotel rooms said Preuss. “We’ll see if it’s enough to keep up part of the area’s historic industrial fabric. under development with 2,300 rooms already in Long Island City’s $135-per-night range.” business. Lusskin attributes the discrepancy to The biggest part of the clientele is the 80,000-strong different borders for what each considers Long Too many hotels means more and better options for residential population whose friends and wedding Island City. Either way, there are many more rooms guests and could compress the price down to $100 guests want to stay local. “Talk to people who aren’t planned than already exist. per night, making it harder for the companies running local and they’re usually in Long Island City for a them to make a profit. To avoid such saturation, wedding,” said Lusskin. There may even be the makings of over-supply, warns zoning is being changed to make the approvals Preuss, who was the broker on the sale of a parcel at process more rigorous in former manufacturing Projects like Cornell Tech on Roosevelt Island will 38-04 11th St., slated for development into a 142-key zones, of which Long Island City has many. inevitably feed the frenzy. “It will push all asset hotel by McSam Hotel Group, owned by Sam Chang. It classes,” said Preuss. “People need to live and eat, is also developing a 324-key property at 38-39 9th St. Guests come to Long Island City as much for and more people will bring commerce, business and and owns several hotels in Manhattan. convenience as for price. It is central: “connected careers, with as much retail and service as they can.”

THEM US

At Bryan Cave Leighton Paisner, we take the complexity out of Real Estate Private Equity and REITs. Our unique “one firm” approach brings to bear best-in-class talent from our 32 offices worldwide—creating teams that blend global reach and local knowledge. We simplify even the most complex transactions and leverage proprietary tools and technology to give our clients a decidedly competitive edge. Looking for a firm that gets straight to the point? Visit BCLPlaw.com to learn more.

LAWYERSOFFICES YEARSBCLPLAW COM

REAL ESTATE ON THE MARKET 2018.indd 1 11/5/18 4:30 PM NONPROFITS

More nonprofits embrace data-driven decision making For-pro t tactics boost results—and funding BY JUDITH MESSINA

n a world awash in data, it’s not domized control trials and seeking out only Wall Street rms and Silicon insights from other nonpro ts to nd Alley data scientists crunching out what works and what doesn’t. numbers these days. Last year nonpro t information ser- INonpro ts, traditionally viewed as vice Guidestar saw a 138% increase in risk-averse, slow-moving organiza- the number of nonpro ts—from 1,630 tions, are increasingly getting on the to 3,882—that earned its platinum seal performance-review train. A growing for providing not just nancial infor- number of rms are amassing information but also metrics illustrating mation, analyzing trends and testing performance and progress in achieving methods to better inform strategy, justi- their mission. fy programs and convince funders their “It’s really a big impact dierentia- money will be put to good use. tor,” said Gabe Cohen, senior director Sometimes the evidence compels an of marketing and communications at organization to boldly transform the Guidestar. “People are starting to re- way it pursues its mission. alize that if they can track data, they For example, data showed that the can make better decisions and increase BUY THE NUMBERS: Rosenblatt of the Bowery Residents Committee invites board mem- Bowery Residents Committee’s home- funding.” bers and other donors to his quarterly data-analysis meetings. less clients were staying in shelters longer and returning in greater numbers Removing subjectivity even though more of them were get- e Center for Employment Op- believe the assumptions and keep For many nonpro ts, the data mind- ting jobs. at prompted CEO Muzzy portunities, which helps the formerly pumping in money, but the eective- set remains a work in progress. It may Rosenblatt to dig deeper, revealing that incarcerated enter the workforce, is ness is not there. Data eliminates all the require a culture change and, for small the path from shelter to housing was collecting stats on a new program that subjectivity, all the emotion.” out ts, a heavy li to gather the neces- congested. In response, BRC became promises to reduce recidivism and keep For some nonpro ts, data has been sary money, skills and people. a real estate developer—a rst for a its young adult clients motivated. Even the impetus—and the underpinning— Data analysis is far from ubiquitous homeless organization—leveraging city with data, teasing out the causes of suc- for experimentation and improvement. in the nonpro t world. A national sur- vouchers for 135 units of permanent cess or failure is dicult when count- e Center for Court Innovation, a vey by a collaboration of Every Action, aordable housing to build a 200-bed less variables, including housing and policy and research organization that a customer-retention soware maker, Bronx shelter, which opened in May. child care responsibilities, get in the works to improve the justice system, and the website Nonpro t Hub found “We saw the length of stay going way of clients’ goals. But without data, used data to illuminate that clients— that 40% of nonpro t professionals use up—recidivism going up—and needed it’s impossible. data to make decisions. to gure out a way to change the exter- “It takes some rigor to gure out “ey can tell stories, which is really nal reality,” Rosenblatt said. what levers are most important to get Data allows nonpro ts important, but they don’t have the in- BRC routinely gathers data on people back on track,” said Brad Dud- “to clearly delineate the frastructure to say tactically and strate- clients and programs, searching for ding, the new chief impact ocer at the gically where they are making a dier- trends and matching input, such as 25-year-old organization. return on investment ence,” Dudding said. helping clients apply for housing, to At Per Scholas, which trains under- Some worry that an emphasis on output, such as housing placements. represented populations in technology, for donors. The God- data can overshadow qualitative and Rosenblatt reviews the results at quar- randomized trials have helped validate will-provide approach oen unmeasurable but still important terly meetings, to which he also invites its training model but also caused it to outcomes. board members, foundation reps and pull the plug on an expensive program is no longer the way Others fear that when cash inows other nonpro ts. that put similarly aged youth in the to do business” are entirely dependent on government “Using resources more entrepreneur- same class. Aer tweaking, the gradua- and philanthropy, there may be no sec- ially to get greater impact and giving tion, certi cation, placement and reten- ond chances if the data throw a spot- partners comfort that these projects are tion rates in the program were still low- people involved in the justice system, light on a failed program. Longstand- not crazy risky and are data-driven— er than in classes with a mix of youth usually defendants—are sensitive about ing organizations that have built up that’s the paradigm shi,” he said. and adult students. how they are treated. e organization good will can weather bad results, but Nonpro ts are becoming more so- “I call those Frankenstein pro- has now operationalized that insight in young nonpro ts could suer. phisticated data analysts, running ran- grams,” said CEO Plinio Ayala. “You its sta training to ensure clients feel Embracing failure as a learning tool respected. has not quite permeated the nonpro t BIG TECH WANTS IN Project Renewal, which seeks to end mindset, something CEO Greg Berman homelessness by providing health and of the Center for Court Innovation, for employment services as well as aord- one, is ghting to change. NONPROFITS WADING into the world of big data will nd technology rms eager able housing, knew there was signi cant “I reject the kind of pass-fail analysis to assist. There are dozens of applications available for evaluating performance turnover in its residential aides sta—at where something is a massive success or and managing operations and people. They include customer-relationship a cost of 16% of salary to replace each total failure,” said Berman, co-author of management software from EveryAction, a private company, and $8.4 billion aide. But seeing the stark 148% annual Trial and Error in Criminal Justice Re- behemoth Salesforce, which as salesforce.org offers a version of its cloud- turnover gure led to a new training and form: Learning From Failure. “Even with based platform to nonpro ts. support program that boosted morale projects that are less than shining suc- Salesforce says that some 37,000 organizations are using its nonpro t and cut turnover in half. cesses, if you dig into the data, there’s al- cloud. To onboard often cash-starved nonpro ts, Salesforce offers up to 10 sub- “Impressionistically, people real- ways something you can learn from it.” scriptions for free. Otherwise subscriptions start at $24 per person per month. ized there was a lot of turnover, but the What is clear is that the passion for EveryAction begins at $49 monthly. numbers make you see it in a whole data is likely to intensify. When 42% of nonpro ts still manually collect and analyze data, according new way and allow you to quantify “e God-will-provide approach is to a Salesforce survey, technology can be a differentiator. savings,” said Jody Rudin, COO of the no longer the way to do business in the “What we’re saying to many nonpro ts is to be transparent,” said Josue organization, which now has six em- nonpro t world,” Ayala said. “Nonprof- Estrada, senior vice president of industry solutions for salesforce.org. “If [some- ployees—10% of its administrative its need to clearly delineate the return one] is giving you $100, how is that affecting the lives of your clients?” — J.M. sta—dedicated to performance mea- on investment, and you can only do

RADHIKA CHALASANI surement and evaluation. that with data.” ■

12 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 12, 2018

P012_CN_20181112.indd 12 11/9/18 3:45 PM THE LIST METRO AREA’S LARGEST FOUNDATIONS Ranked by total assets

NOVEMBER 12, 2018 | CRAIN’S NEW YORK BUSINESS | 13

P013_CN_20181112.indd 13 11/9/18 3:20 PM THE LIST METRO AREA’S LARGEST NONPROFITS Ranked by 2017 total operating expenses

14 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 12, 2018

P014_P015_CN_20181112.indd 14 11/9/18 3:18 PM

1&33 4A6B ! "88(&A &67("%0&6 " 11&3 988&6 &6&0 "55 &46'& 43847

6")3D7 &A !460 97)3&77

FOR ALL CRAIN’S LISTS, VISIT CRAINSNEWYORK.COM/LISTS. MAKE IT AWARDS

Enter for a chance to win a $30,000 grant HUKILJVTLHUVɉJPHSLU[YLWYLUL\YVM the New York Knicks.

5VW\YJOHZLULJLZZHY`*LY[HPUYLZ[YPJ[PVUZHWWS`*VU[LZ[LUKZH[! WT,;VU+LJLTILY 6WLU[VSLNHS<: YLZPKLU[ZVM5L^@VYR5L^1LYZL`HUK*VUULJ[PJ\[H[SLHZ[ `LHYZVSKH[[PTLVMLU[Y`ÔVYLZPKL^P[OPUHTPSLYHKP\ZVM 4HKPZVU:X\HYL.HYKLU=VPKÔLYLWYVOPIP[LK:\IQLJ[[VJOHUNL^P[OV\[UV[PJL7YPaLTHÙV[ILZVSKMVYJHZOHUKKVLZUV[ PUJS\KL[YH]LS[VMYVT]LU\L:LL6ɉJPHS9\SLZMVYJVTWSL[LKL[HPSZ^^^THRLP[H^HYKZJVTVɉJPHSY\SLZ

NOVEMBER 12, 2018 | CRAIN’S NEW YORK BUSINESS | 15

P014_P015_CN_20181112.indd 15 11/9/18 3:19 PM Giving Guide Nonprofits use creative methods to identify and serve those in need

or Janet Martin, identifying people in need of help is relatively simple. She Using digital tools to reach those in need is also helping many nonprofits is founder of the nonprofit organization Angels in Africa, which focuses on engage with people who need their services. Social media is playing an Fhelping impoverished Masai people in Africa. “We work with the poorest important role, with many nonprofits now designating someone on their of the poor people in Kenya,” said Martin, adding that their needs are evident. team to formally guide their social media efforts, on either a part-time or full-time basis, the research found. Nonprofits such as the United Nations “All you have to do is open your eyes,” she said. Children’s Fund are particularly active users of sites such as Twitter and Facebook to raise their public profile. Nonetheless, Martin pays close attention to the messages the community sends as the nonprofit delivers its services. For instance, when she built a small school about 20 years ago, the 12-student endeavor soon began attracting attention from the community. “They wanted to be part of it,” she recalled. In response to their interest, she began expanding the school, which now has 850 students.

“Entire villages will flock to the area where the school is, so they can become part of the community, and kids can get a good education,” she said.

For nonprofits, engaging the communities they serve is critical. Angels in Africa found that members of its community were so happy with a dorm for girls at its school that it added one for boys, too. No matter how good their programming or services, finding the right way to reach their target clients and deliver services in the most But for many nonprofits, conversations with people who need services ideally convenient and accessible way for their community can make or break continue long after initial contact. Setting up structured channels for ongoing their success in achieving their mission communication and service delivery can also be very important.

Some nonprofits have found that traditional methods of relationship One growing area of service delivery is through mobile apps. About half building, like grassroots conversations with members of the community of charities in the U.S. and the U.K. have mobile apps designed for their as Angels in Africa does, are highly effective. Other methods include beneficiaries. The Salvation Army is one example. It provides real-time enlisting the support of community leaders, participating in local events updates on mobilization activities, coaching and community prayer. such as festivals, where they will get exposure; and engaging local residents as volunteers for hands-on projects or to share their knowledge. Nontechnical approaches can be just as effective in keeping the lines of communication and service delivery open. Angels in Africa, for instance, Data-driven ways to identify those in need are also popular. Ninety percent relies on a formal school committee to provide input from parents. “They of nonprofits collect data, and 40% of nonprofit professionals use data elect the people they would like to have on the committee, which helps to make decisions, according to research firm everyaction, a provider plan the direction of the school,” Martin said. of customer relationship management software to nonprofits and the educational community. One creative example is by Polaris, an organization Ideas submitted by the committee have resulted in the hiring of a chef to that fights human trafficking. Using data from calls to its telephone hotline, prepare meals for children at the school and a student farm, which raises Polaris creates a map of locations where human trafficking has been staple foods such as beans, corn, tomatoes and kale. reported, enabling affected communities to respond. “All of the kids at the school will end up working on the farm, planting and Children’s Aid, a private child-welfare group headquartered in New York harvesting the crops,” said Martin. “Extra food will go into the kitchen.” City, is also among those nonprofits increasingly turning to data. It has, for instance, turned to formalized screening of the young people it serves Another initiative the committee suggested was the building of a girl’s to identify those in need. dormitory. Walking home in the evenings, many of the girls at the K-8 were unsafe. “So many would be taken or attacked,” said Martin. “It was “In recent years, the medical community has been more keenly focused very dangerous for them.” on understanding the social determinants of health, which are economic and social conditions in the environments in which people live, learn, work The resulting girls’ dorm now sleeps 400 students. A boy’s dormitory and play that affect a wide range of health and quality-of-life outcomes,” followed. Students live in the dorms during three trimesters, with month- noted Anthony Ramos, vice president of marketing and communications long breaks three times a year to return to living at home with their at Children’s Aid. “Children’s Aid decided to incorporate screening for families, most of whom live three to four miles away from the school. food insecurity—a social determinant of health—into every ‘well child’ visit at our health centers for families with children age 6 and under.” Angels in Africa also actively makes efforts to extend the relationships it has with children and their families beyond the time the children attend its Through the use of health screening, Children’s Aid was able to uncover schools. Once kids finish 8th grade, promising students are often invited to information that some of the families involved might have otherwise go to high school, which comes with fees that many families cannot afford. been reticent to share. “We found that an alarming 12% of families lacked Angels in Africa is currently paying for 125 students to attend high school. If a adequate food resources and were going hungry, and we believe that student does well, the charity sends them to a university. Currently, there are number could actually be higher if we account for families who may have 12 graduates from Angels in Africa schools, in college, said Martin. withheld information during the screening,” said Ramos. “Health care staff were then able to connect those families with resources to ensure the family “It warms your heart when you see that such a little bit of money and was well fed and the kids could get to school and continue to learn and grow.” effort can make such a big difference,” said Martin.

An Advertising Supplement to Crain’s New York Business

Crain's Giving Guide 2018_MECH.indd 1 11/8/18 1:09 PM Giving Guide Angels In Africa

What We Do: First we feed their bodies, then we feed their minds. It is the only path to Many of these poorest of the poor go on to become doctors, lawyers, self-sustainability. nurses, accountants, and teachers.

By providing the basic life essentials of food, water, clothing, and shelter All of them give back to their community in the most meaningful ways! to sustain our women and children, then empowering them with an excellent education, Angels in Africa is changing the way the Masai are How You Can Help: regarded in Kenyan culture. We give them something that most people 1. Please visit our website at AngelsinAfrica.org. take for granted—we give these people HOPE. 2. Watch our videos and see for yourself how HOPE can change people.

We currently have 850 students in our K-8 boarding school and also 3. Realize that 100% of all donations go towards our projects. There are support 125 students in high school and 12 students in university. no employees and no administrative costs come out of donations. 4. Happily decide to make a donation! • A donation of $200 supports a student in our primary school for 1 year. Fast Facts: • A donation of $500 sponsors a student in a neighboring high school for 1 year. Organization: Angels In Africa, Inc. • A donation of $1,000 pays for an entire year of tuition, room and board at a university in Nairobi for 1 year. # Employees: volunteers • A donation of any amount provides books, uniforms, shoes, Revenue: $400,000 annually and school supplies for our students. 5. Think about joining us with your high school aged student for a 335 Madison Ave., 24th Floor good-will mission to Kenya. A life-altering experience! Email for New York, NY 10017 more details: [email protected] AngelsInAfrica.org Please join Angels in Africa in bringing HOPE to some of the poorest people in the world!

An Advertising Supplement to Crain’s New York Business

Crain's Giving Guide 2018_MECH.indd 2 11/8/18 1:09 PM Giving Guide Children’s Aid What We Do: Imagine a world where children growing up in poverty aren’t deﬁned by takes for young people to learn in the classroom and beyond, to grow their surroundings and have limitless opportunities. At Children’s Aid, healthy and strong, and to become leaders of their own lives. Whether it’s we have built a comprehensive network of services to make that vision a getting kids ready for kindergarten or college, building healthy lifestyles reality for nearly 50,000 children, youth, and their family members in four or strong families, one of our 100+ programs will serve as the next step in of New York City’s most under-resourced communities. We know what it breaking the cycle of intergenerational poverty.

How You Can Help:

Join the Children’s Aid family by making a tax-deductible gift today, participate in our NYC Marathon Team and our Golf Classic at the world- supporting our youth as they build successful, independent lives. You’re famous Baltusrol Golf Club. For those looking for exciting corporate also invited to join us at our annual beneﬁt in the Ziegfeld Ballroom, and to partnership opportunities, there are a wide variety of options, including workplace fundraisers, holiday drives, and matching gifts programs. Companies who commit to supporting Children’s Aid also have access Fast Facts: to our meaningful volunteer opportunities for groups of all sizes, which range from one-day excursions, such as beautifying a site, to longer- Organization: Children’s Aid term investments such as mentoring and ongoing tutoring programs. Our Associates Council is also a great option for young professionals # Employees: 2,322 looking to become the next Children’s Aid leaders, which is an active and supportive community of early- and mid-career change-makers Revenue: $134,407,048 who plan fundraising events and volunteer with our children, and make lasting connections with like-minded colleagues. And as a recent winner Year Founded: 1853 of the Nonproﬁt Excellence Awards, you know that your generosity—in any and all forms—is supporting the highest-quality interventions in 711 Third Ave., Suite 700 young people’s lives, ensuring our next generation can achieve anything. New York NY 10017 ChildrensAidNYC.org Visit ChildrensAidNYC.org for more information

We are on a mission to ensure that there are no limits to our children’s potential. LEARN GROW LEAD

www.ChildrensAidNYC.org

Crain's Giving Guide 2018_MECH.indd 3 11/8/18 1:09 PM Giving Guide The Art of Problem Solving Initiative, Inc.

What We Do: Bridge to Enter Advanced Mathematics (BEAM) creates realistic path- middle school summer programs where they study advanced topics (such as ways for underserved students to become scientists, mathematicians, number theory, astronomy, combinatorics, and programming—which they engineers, and computer scientists. Starting in 6th grade and continuing might not otherwise study until college) and then receive follow up through through college, our students learn advanced math, ﬁnd a community of weekend enrichment classes, individual guidance, and mentoring throughout friends who love math, and develop the social-emotional skills to succeed 8th grade and high school. BEAM’s students are admitted into top high at the same programs attended by more aﬄuent students. schools across the city (including the specialized schools such as Stuyvesant and Bronx Science), attend excellent high school summer programs for At BEAM, math is fun, engaging, exciting, and deep. Students attend intensive advanced study, and continue on to top colleges to major in STEM.

How You Can Help: Fast Facts: Over 50% of BEAM’s annual funding comes through individual donors. To support the organization’s recent growth, the board of directors has Organization: The Art of put forth a match: all new or increased donations through 12/31/2018 Problem Solving Initiative, Inc. will be matched at a rate of 2.14:1, so that each $1 donated becomes $␲ of impact, up to a total of $275,000. # Employees: 25 Corporate sponsors can support tables at our events, including our Revenue: $3,507,974 annual Slightly-Mathy Trivia Night in late October. Main Initiative: Bridge to Enter BEAM also welcomes volunteers to work with students on everything from math to college essays. Individuals may apply at www.beammath. Advanced Mathematics (BEAM) org/volunteer. Companies interested in exploring a partnership should 55 Exchange Place, Suite 603 reach out to [email protected] or by calling (888) 264-2793. New York, NY 10005 beammath.org For more information about BEAM, view our annual report at www.beammath.org/summer-report or reach out to [email protected].

UNLOCK LIVES IN SCIENCE, ENGINEERING, AND MATH

We teach low-income and historically underrepresented middle and high school students the advanced math that will prepare them for success in Stephanie, 13, explains the Fano plane to Dr. Dan math and science. 0D\GXULQJDÀQLWHJHRPHWULHVFODVVDW%($0

An Advertising Supplement to Crain’s New York Business

Crain's Giving Guide 2018_MECH.indd 4 11/8/18 1:09 PM Giving Guide Educational Alliance Who We Are: How You Can Help: Educational Alliance brings together and partners with diverse communities A gift to Educational Alliance enables us to impact the lives of 50,000 New in Lower Manhattan, offering individuals and families high-quality, multi- Yorkers annually. We invite individuals, foundations, and corporations generational programs and services that enhance their well-being and to support our mission and services. Educational Alliance is a Charity socioeconomic opportunities. A historically Jewish organization, we have Navigator Four-Star Organization, so you can trust your contribution dedicated ourselves to improving the lives of all New Yorkers since 1889. has maximum impact on the people we serve and that our work with Through our network of community centers on the Lower East Side and in our partners is transparent and accountable. the East Village we provide dynamic programs that center on education, health and wellness, arts and culture, and civic engagement, which serve You can improve the lives of New Yorkers by making a financial contribution, the needs of people at all stages of their lives. We are a place where everyone taking advantage of our volunteer opportunities, or developing a corporate is welcome and where progress is powered one relationship at a time. partnership with Educational Alliance. Financial donations may support our general operating expenses or be designated for specific purposes, like support of our dynamic teen Fast Facts: center, innovative older adult services, or unique, community-based addiction recovery programs. Organization: Educational Alliance Volunteer opportunities for individuals and groups allow you to work side-by-side with our talented # People Served: 50,000 New Yorkers annually staff and the people we serve, like the over 1,000 students in our community schools. Corporate Revenue: $47,492,000 partnerships—such as the ones we’ve developed with Morgan Stanley, Gap Inc., and ConEdison—help Year Founded: 1889 organizations positively impact their communities in ways that align with their missions. 197 East Broadway New York, NY 10002 For more information about Educational edalliance.org Alliance, visit us online at edalliance.org or contact us at [email protected].

EVERYONE IS WELCOME HERE.

Educational Alliance brings together and partners with diverse communities in Lower Manhattan, offering individuals and families high-quality, multi-generational programs and services that enhance their well-being and socioeconomic opportunities. Since 1889, we have dedicated ourselves to improving the lives of all New Yorkers through our network of community centers on the Lower East Side and in the East Village, whose programs center on education, health and wellness, arts and culture, and civic engagement and serve the needs of people at all stages of their lives. We are a place where everyone is welcome and where progress is powered one relationship at a time. For more, visit edalliance.org.

Crain's Giving Guide 2018_MECH.indd 5 11/8/18 1:09 PM Giving Guide Nonprofits fight income inequality through education

tudents in affluent communities who love science and math often attend a series of challenging math programs throughout the year, including get a head start exploring their passions, participating in school a three-week, application-only program during the summer at Bard College S science fairs and after-school enrichment programs from an early or Union College. After that, there is a Saturday program for 8th through 12th age. But in disadvantaged school districts, these resources don’t always grades. Along the way, the program helps students with other aspects of exist, and students must rely on classroom teaching alone. their academic careers, including gaining entry to New York City’s top public schools, known for their academically challenging programs. That can leave lower-income children struggling to catch up if they decide to continue to study subjects later on, especially if instruction is lacking. Ultimately, the enrichment programs are aimed at helping them succeed “In college, they find they are not prepared for the level of the work; and when they enter the workforce, notes Zaharopol. “It gives them the path- their peers, who have this extra prep, will do much better,” said Daniel ways to much higher-paying careers,” he said. Zaharopol, executive director of The Art of Problem Solving, a nonprofit based in New York City and Los Angeles. As mentioned however, the causes of educational and income equality are complex, and the need for solutions extends beyond schools. The Art of Problem Solving aims to help close the gap through its program The Educational Alliance, based on the Lower East Side of Manhattan, Bridge to Enter Advanced Mathematics works with both students and their parents (BEAM), which Zaharopol founded. BEAM to help make educational opportunities more brings advanced enrichment learning in accessible and brings together both low-income math to low-income students. families and middle-class residents of the city through its programs. The organization runs a The program starts the summer after network of community centers on Manhattan’s sixth grade, when students who apply Lower East Side and in the East Village. can attend a five-week program taught by both college professors and high- The nonprofit’s Teen Center has in recent months school students in New York City. The The Educational Alliance has embraced early-childhood introduced programs such fast-growing program currently serves education to give youngsters an edge. as a fashion studio, where 200 students in the city. students work with instruc- tors from the Fashion Insti- “We’re not just giving them the academic preparation tute of Technology, and has but also building a community,” said Zaharopol. “They are teamed up with a comput- meeting other kids like them who are really interested in er programming company math and really serious about pursuing their academics. to offer workshops to teach them how to design video The Art of Problem Solving is one of a number of nonprofits games, including those that The Art of Problem Solving introduces young people to ad- bringing extracurricular programs that lower-income students vanced mathematics through its enrichment programming. include virtual reality. rarely have access to, to families of modest means. “These kids are now getting a chance to do things that their public schools Researchers have found that a lack of enrichment programs can have a big are not giving them a chance to do,” said Alan van Capelle, president and CEO. effect on students’ future. According to a recent study by the Annenberg Institute for School Reform, “A growing body of research demonstrates The Educational Alliance, also offers early childhood education. It that participation in organized activities outside the classroom helps cul- was home to one of the first Head Start programs to open when the tivate the skills, habits, connections, and knowledge that prepare children government program was introduced by the U.S. Department of Health for lifelong success: academic success in school, graduating from high and Human Services in 1965. As the children participate, their parents are school, going to college, getting a job, and participating in civic life.” Studies invited to take part in English-as-a-second-language programs and take also show that students who earn a postsecondary degree have a better community college classes in partnership with City University of New chance of earning a middle-class income than those who don’t. York. Parents can also take a financial literacy course.

Such gaps can contribute to income inequality, a pervasive problem “We believe this two-generation approach to education is not only going throughout the country. The top 1% of earners in the U.S. averaged 26.3 to have long-term benefits for their academic progress but also finally times the income of the remaining 99%, according to a report released in give them a leg up into the middle class,” said van Capelle. 2018 by the Economic Policy Institute. The Educational Alliance has made an effort to ensure that its learning cen- In New York City, income inequality is particularly pronounced. In 2014, ters are more attractive than the typical one offered in programs for low-in- the top 0.1 percent of earners brought in nearly 24% of the total income come students. in the city, while 50% of earners brought in 7.4% of the city’s total income, according to a report by the city’s Independent Budget Office. “If you walked into any of our community centers, everything is clean and beautiful,” said van Capelle. “There is a heavy emphasis on customer Income inequality is a complex problem that isn’t easy to solve, but service. We believe the folks walking in our doors are customers with nonprofits are finding they can make a difference by offering programs agency to shop for service.” that bolster students’ knowledge and performance throughout the years they spend in school. The Alliance’s efforts extend beyond education to helping clients build networks of friends and neighbors to aid them in creating social BEAM, for instance, doesn’t stop at sixth grade. In seventh grade, students capital that contributes to success.

An Advertising Supplement to Crain’s New York Business

Crain's Giving Guide 2018_MECH.indd 6 11/8/18 1:09 PM THE ARTS Hitting a high note After a 25-year slide, the opera business has found its voice again. One New York company epitomizes the turnaround BY AARON ELSTEIN

THE YEOMEN OF THE GUARD: Abigail Benke and Matthew Wages of New York Gilbert & Sullivan Players ome go to the opera out of a sense of social obligation or curiosity. Others go for that moment when the body and mind of everyone in the theater meld. “Sometimes the whole audience Sstarts breathing in sync with the singer,” said Peter Szep, a conductor and co-founder of the New York Opera Alliance. “ at’s when you’ve really hit it.” e New York Gilbert & Sullivan Players really hit it last month at a performance of e Yeomen of the Guard. With the backing of a 27-piece orchestra and a 16-member chorus, James Mills and Laurelyn Watson Chase sang and danced their way through the exquisite duet “about a merryman, moping mum/Whose soul was sad and whose glance was glum/Who sipped no sup and who craved no crumb/As he sighed for the love of a lady.” When the duo nished “I Have a Song to Sing, O,” the crowd

BUCK ENNIS exhaled, then exulted in delight.

22 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 12, 2018

P022_P024_CN_20181112.indd 22 11/9/18 11:40 AM “I’ve heard for 30 years that the the road in the spring, including to the audience is dying out—and it isn’t Paci c Northwest, where the contro- true,” said Albert Bergeret, the com- versy originated. pany’s founder, artistic director, “ is is not entirely by chance,” orchestra conductor, set designer, Executive Director David Wannen warehouse manager and truck driver. said. “We are very pleased the tour has “At some point in people’s lives, they been given support by Asian-Ameri- get to where the classics become more can communities on the West Coast.” meaningful to them.” e return of e Mikado by the e Gilbert and Sullivan troupe nation’s leading Gilbert and Sullivan started in 1974 with a performance on company is one of many optimistic an Upper West Side street corner and WANNEN AND NYGASP notes in the world of opera, which is a $25 budget. It has become a xture course-corrected in nally showing evidence of reversing of the New York theater scene, stag- the wake of online a 25-year decline on the business side. controversy for dated ing three shows a year here, regularly content in The Mikado. touring and cobbling together more Nascent recovery than $1 million in annual revenue. In September the National Endow- But the company hit a discourag- ment for the Arts reported that the ing low point three years ago, when it “IF YOU DON’T LIKE GILBERT number of adults who attended an was forced to cancel performances of opera in the past year rose for the its perhaps most beloved opera, e AND SULLIVAN, IT’S PROBABLY rst time since 1992. It wasn’t a huge Mikado, a er critics took to social BECAUSE YOU HAVEN’T SEEN increase, to 2.2% of the population media to accuse the show—written from 2.1%, but the data yielded some by two Englishmen in 1885—of being MY COMPANY DO IT” hopeful trends. For instance, the a racist caricature of Japan. e N e w number was 2.7% for adults ages 35 to Yorker lamented that the place of Gil- 44, up from 1.2% in 2012, a sign audi- bert and Sullivan operas in 21st-century theater was stakes were huge for the company, which counts on ences are getting younger. “tenuous … for all their delights.” big crowds for e Mikado and a few other marquee e healthy economy has helped li ticket sales, Bergeret’s company, commonly known as Nygasp, shows to support its mission to perform all 13 of and foundations and private donors are ush a er responded to the criticism by reimagining e Mika- W.S. Gilbert and Arthur Sullivan’s operas. the nine-year-long bull market on Wall Street. e do’s costumes, deleting some words and choreogra- Fortunately, audiences and critics approved of number of small opera companies in New York has phy, and adding a prologue to demonstrate that the the new production when it debuted in New York doubled in the past ve years to nearly 100. wacky story is a fantasy of its Victorian creators. e two years ago, and Nygasp is planning to take it on “ ere’s a real grassroots movement of ‘Let’s get

The Book of Lists is an annual data resource which culminates Crain’s year-round eorts COUNTDOWN to gather business intelligence and data in the TO THE BOOK OF LISTS New York business community. It is a staple resource used all year long.

BOOK OF LISTS FAST FACTS • Crain’s Book of Lists privately held and publicly held lists have more than 50 companies

• There are more than 50 people on the top-paid CEOs list

• The Hospital executives and employees lists featureA moreIN thanS 50NEW individuals YORK BUSINESS total CR • The book features a Fast 50 list – showcasing metro New York’s fastest-growing companies DAYS LEFT • Crain’s Book of lists features a retail lease list and an oce leases list – each which have 50 deals

AD CLOSE DATE: DELIVERY DATE:

ESS® NEW YORK BUSIN

© 2018 CRAIN COMMUNICATIONS INC. ALL RIGHTS RESERVED PRICE $49.95 SPECIAL ISSUE | BOOK OF Don’t miss your opportunity to extend your brand reach LISTS in this must-read and highly-valued issue. 2019 For more information and to reserve your ad space contact advertising director Irene Bar-Am at [email protected]

NOVEMBER 12, 2018 | CRAIN’S NEW YORK BUSINESS | 23

P022_P024_CN_20181112.indd 23 11/9/18 11:41 AM

11/5/18 1:58 PM

Book of List cover_Final.indd 1 THE ARTS

out there and do a show,’ ” said Szep, whose group is a member organization of opera companies. Still, the opera business is a long way from living happily ever a er. While more people are giving it a try, fewer than 20% of rst-time goers return within a year, according to a 2011 study by Elliot Market- ing Group, a rm that helps arts organizations. e usual explanation is that folks are too ensconced in their smartphones and Netix for a night out, but that only goes so far. Marc Scorca, chief executive of Opera America, a research and advocacy nonprot, observed that restaurants have emerged as serious competitors for people’s leisure and entertainment dollars. “e frequency of opera attendance has dimin- ished,” Scorca said. “at’s the challenge.” Nygasp certainly isn’t immune from everything ailing opera, but it deals with the situation better EXIT STAGE LEFT? Nygasp’s than most by oering a specic repertory that draws jack-of-all-trades founder, a loyal audience. Ticket sales account for about 70% Bergeret, has no immediate of its budget—unusually high in a business where plans to retire. their share can be as little as 20%. But it isn’t enough anymore to put on fully staged productions of Gilbert and Sullivan shows for people who can (and do) passionately discuss whether Iolanthe is better than e Mikado. (It is.) In recent years Nygasp has created a revue featuring Gilbert and Sullivan and Broadway standards, called I’ve was assumed that teenagers would get the joke when the shows were written. At a Pinafore performance Got a Little Twist, and next spring it will produce a Mad magazine depicted President John F. Kennedy last year, Mills scored a big laugh when he said it was double bill consisting of a seldom-seen show writ- singing, “I tousled up my hair so careful-lee/at time to “Make America Great Britain again.” ten by Gilbert and a dierent British composer and now I am the leader of the whole coun-tree!” “If you don’t like Gilbert and Sullivan,” Bergeret a second by a pair of contemporaries. Next year it But in the 1980s Gilbert and Sullivan began to said, “it’s probably because you haven’t seen my com- plans to launch an interactive version of e Pirates disappear from school auditoriums as government pany do it.” of Penzance aimed at young audiences. funding for the arts slowed. In 1996 the NEA’s fund- “As a child I enjoyed these shows one way, and as ing was lashed by nearly 40% a er congressional New business model an adult I understood the satire,” said Nygasp Chair- Republicans, led by House Speaker Newt Gingrich, Wannen, a Nygasp singer with a post- man James Lessersohn, a former New York Times shut down the government twice during a budget bat- baccalaureate from Columbia Business School, was Co. executive. “Gilbert and Sullivan tle with President Bill Clinton. During put in charge of the business side in 2006 so leader- grows up with you.” the shutdown, with the White House ship wouldn’t be a one-man band. e rst order was short-staed, intern Monica Lewinsky to do more fundraising, which accounted for only Midtown nerve center delivered a pizza to the Oval Oce, about 15% of revenue (“Albert would always say, e Metropolitan Opera is of unleashing a series of events that led to ‘I’d rather sell you a ticket than ask for a donation,’ ” course New York’s premier stage for an impeachment trial on the oor of Wannen said). e company wants to do more chil- grand opera, but the place that helps the U.S. Senate. Chief Justice William dren’s theater, not only to build the next generation make opera grand everywhere else is Rehnquist donned robes styled like of audiences but also to attract support from foun- located in a converted Garment Dis- those worn by the Lord Chancellor in dations, which o en ask nonprots about their out- trict fur factory on Seventh Avenue. Iolanthe—a less-than-subtle nod to the reach programming. at’s where Opera America opened farcical nature of the proceedings. e company recently moved into the 634-seat its National Opera Center in 2012, Meanwhile, the NEA’s budget is Kaye Playhouse on the Upper East Side a er per- and 80,000 singers visit every year to two-thirds lower than in 1980 a er forming for many years at City Center, which has rehearse, record and audition. adjusting for ination. 2,257 seats, because a full house has a better vibe “We are the collective backstage Still, Gilbert and Sullivan man- than a bigger, half-empty one. of the opera industry,” Scorca said. aged to remain on the radar, thanks in Nygasp expects to lose a little money on its New “ank goodness we signed a lease OF NOTE part to the Public eater’s version of York shows because of the costs here of rent, adver- when the market was down in 2010.” e Pirates of Penzance, a Broadway tising and unionized singers, musicians and stage- Yet all the vitality can’t mask the hit that was made into a 1983 movie hands, but it usually makes up the dierence from fact that New York’s leading opera starring Kevin Kline and Linda Ron- touring and contributions. Supporters who give at institutions are struggling. e Met % stadt. e last big Gilbert and Sulli- least $100 get their name printed in the program, has not consistently lled its 3,786- van pop-culture moment came when while $1,500 gets individual donors listed on Car- 2.7SHARE of adults 35 to seat theater for a long time, and Sideshow Bob was persuaded to sing negie Hall’s website. But Lessersohn does not bewail 44 who saw an opera Moody’s downgraded its debt in “H.M.S. Pinafore” instead of killing the lack of a sugar daddy. “ere’s no cosmic rule last year, up from 1.2% May, citing declining subscriptions Bart in a 1993 episode of e Simp- saying we get one,” he said. in 2012 and “very thin liquidity.” New York sons. At the same time, opera audi- Wannen said Nygasp’s revenue last year was City Opera is regaining its bearings ences peaked nationally at 3.3% of approximately $1.1 million, about $60,000 more a er coming out of bankruptcy two adults, then began their long decline. than forecast, with net income of $27,000—thanks years ago, while innovative upstarts Nygasp wobbled nancially in the in no small part to several large donations. such as Gotham Chamber Opera early 1990s but recovered. Bergeret e board aspires to have donations make up half 100NUMBER of small opera has put together a superb ensemble of have amed out. of revenue. at requires assuring potential bene- e high-water mark for New companies in NYC, twice singers and musicians, some who have factors that the company will survive Bergeret, its York opera, from a business per- as many as ve years ago been part of the company for more jack-of-all-trades founder, who is 70. A ve-year spective, was probably when Lin- than 30 years. Bergeret’s wife designs succession plan has been mapped out, but Bergeret coln Center opened in 1966. For many of the costumes, and at least insists he isn’t going anywhere soon. “ere are those decades seats were lled by gener- eight company members have married who want me to plan for it,” he said. ations of New Yorkers who’d been each other. Whenever he exits the stage, he won’t miss the exposed to opera as part of the pub- $27K e troupe treats the operas cheers so much as the guaws when the humor of lic school curriculum, and Gilbert NET INCOME of Nygasp respectfully but not reverentially, and Gilbert and Sullivan lands just right. and Sullivan productions were a big last year on revenue of performers usually slip in an ad lib or “Applause is good,” Bergeret said, “but give me

BUCK ENNIS part of that. Indeed, in the 1960s it $1.1 million two, something that’s been done since a laugh.” ■

24 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 12, 2018

P022_P024_CN_20181112.indd 24 11/9/18 11:52 AM TO PLACE A CLASSIFIED AD, CALL 1 212-210-0189 OR EMAIL [email protected]

PUBLIC & LEGAL NOTICES POSITION AVAILABLE

Notice of Qualification of SOY PARK Notice of formation of off-vintage, LLC. Notice of Formation of Limited Liability Solution Sales Manager (Elsevier, VIEW LLC Appl. for Auth. filed with Arts. of Org. filed with Scy of State of Company (LLC). NAME: Shingo Property Secy. of State of NY (SSNY) on 10/ NY (SSNY) on 8/20/18. Office loca- LLC. - Articles of Organization filed with Inc., New York, NY) Solve customer 05/18. Office location: NY County. LLC tion: NY County. SSNY designated the Secretary of State of New York challenges & roadblocks through formed in Delaware (DE) on 10/02/18. agent upon whom process may be (SSNY) on 08/15/2018. Office loca- engagement & optimal use of Elsevi- Princ. office of LLC: 888 Seventh Ave., served and shall mail copy of process tion: Bronx County. SSNY shall mail a 3rd Fl., NY, NY 10106. SSNY designat- against LLC to 180 Water St., NY NY copy of process to: The LLC, 2851 HU·V/LIH6FLHQFHVVROXWLRQSURGXFWV ed as agent of LLC upon whom process 10038. RG Agent: US Corp Agents Inc. E195 Bronx, NY 10461. Purpose: Any Employee reports to Elsevier, Inc. against it may be served. SSNY shall 7014 13th Ave, #202, BY, NY 11228. lawful purpose. RIÀFHLQ1HZ

NOVEMBER 12, 2018 | CRAIN’S NEW YORK BUSINESS | 25

P025_P022_CN_20181112.indd 25 11/9/18 4:36 PM SNAPS BY CHERYL S. GRANT

Searching for a cure for dementia e Association for Frontotemporal Degeneration held its third annual benet—its largest to date—Oct. 17 at the Pierre Hotel. It raised $1.9 million for research and support for those with the disorder. Frontotemporal degeneration is the most common cause of dementia in people younger than 60. Renée Elise Goldsberry performed at the event.

Gail Andersen, the association’s board chairwoman, and Susan Sylvia Mackey, widow of former NFL tight end Dickinson, chief executive, took part in the event, Hope Rising, John Mackey, with Benjamin Hazel, internal which drew more than 500 guests. client adviser at JP Morgan Chase & Co. In a 2011 obituary, e New York Times wrote that “John Mackey became the Lou Gehrig of football: a legend dened by his demise” from dementia.

Combining Aid for the vulnerable forces for Her Justice held its 25th cardiac care anniversary Power of e Brooklyn Hospital Center Pro Bono party Oct. 10, held its Founders Ball Oct. 18 raising $221,000 to to highlight its collaboration provide free legal with Mount Sinai Health help to women living System. Brooklyn Borough in poverty. Lawyer President Eric Adams, Lauren Lee and City Council Majority Julie Chi represented Leader Laurie Cumbo and the Korean American Brooklyn Hospital CEO Family Services Center Gary Terrinoni attended at the dinner. the event, held in the New York Marriott at the Brooklyn Bridge.

Amy Barasch, executive director of Her Justice, anked by board member Ken Ziman, managing director at Lazard Frères & Co., and his wife, Karen Ziman. ey were among the 300 guests who attended the Honoree Earl Weiner, counsel at Sullivan & Cromwell and a Brooklyn Hospital event, at Guastavino’s. Center trustee, and Tony Award–winning playwright David Henry Hwang. More than 850 guests raised nearly $1.5 million for the hospital’s foundation.

GETTY IMAGES, RICH SCHWAB, JEFF BACHNER, PASHA KALACHEV GETTY IMAGES, RICH SCHWAB, JEFF BACHNER, PASHA SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL [email protected].

26 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 12, 2018

P026_CN_20181112.indd 26 11/9/18 3:49 PM BUILDING THE CITY WE CALL HOME

TradeOﬀ thanks our extended family of clients and industry supporters for counting on our dedicated team to build a better New York. 91% 91% 100% From the 5 Boroughs Minority Workforce OSHA Trained Certiﬁed

Interested in learning more about us?

Please visit our website tradeoﬀconstruction.com or email us at info@tradeoﬀconstruction.com

CN018902.indd 1 11/8/18 12:08 PM America’s Premier Private and Business Bank®

SERVING THE NEW YORK METROPOLITAN AREA

Call (888) 810-7419 to learn more. Visit cnb.com

CN018903.indd 1 11/7/18 2:21 PM