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INSIDE REPORT TOP STORIES CRAIN’S Bank that opened FORTUNATE 100 during credit crisis Out: golden parachutes In: golden hellos faces own crunch ® PAGE 2 PAGE 12 Glitz, smarts make family of hoteliers VOL. XXV, NO. 25 WWW.CRAINSNEWYORK.COM JUNE 22-28, 2009 PRICE: $3.00 a hot property PAGE 3 Senate imbroglio Atlantic imperils city, schools and more SALVAGING Yards won’t THE INSIDER, PAGE 8 LEHMAN be derailed past the original 2014 target. Despite foes, The Metropolitan Trans- How turnaround vets ply dark arts watered-down portation Authority will probably vote the next day on to wring value out of biggest flop ever project likely a proposal allowing Forest City to delay delivery of a to proceed $100 million lump-sum pay- BY ERIK IPSEN ment to the MTA for devel- BY THERESA AGOVINO opment rights, and possibly around 8 a.m.on sept.17, Jeff Fitts was scouring the halls at his mid- reduce the payment amount. town office, desperately seeking someone who looked like a 44 regular. forest city ratner’s long- Despite fierce opposition Lehman Brothers had become history’s biggest bankruptcy just 48 delayed, dramatically altered to the shrinking project, bets BEER BELLIES hours earlier, and Mr. Fitts’ restructuring firm had been tapped to sal- Atlantic Yards project faces are running heavily in favor of vage what remained of the 158-year-old investment bank. While Mr. two key votes this week on its state officials’ reaching the Queens entrepreneur latest changes.Critics say the necessary compromises to runs biggest beer Fitts was on the train to work that morning, his boss had called to tell him that he would be the new co-head of Lehman’s vast real estate modifications will dilute— push it along. Far too much garden in the city P. 21 or erase—the plan’s pledged time and money has been in- arm. He was to be at the bank’s 31st-floor boardroom at 10:30 sharp G ANNE FISHER offers public benefits. vested, officials say. It’s also advice to Wall Street for the formal handover of control—wearing the jacket and tie he’d On Tuesday, the Empire unlikely that another devel- career switchers P. 21 See SALVAGING LEHMAN on Page 20 State Development Corp. oper could be found to take board is expected to weigh in over in this economic climate. G MOVERS & SHAKERS on a timetable that would put “Too much has happened the completion date for the on this project,” said Robert Joshua David $4 billion,22-acre project far See ATLANTIC on Page 20 goes to the head of the High Line P. 22 G RÉSUMÉ REVIEW Super Mario’s Job seekers get search tips from the pros P. 22 G GAEL GREENE super payload visits Daniel Boulud’s DBGB. No exec comes And she can’t get close to Gabelli’s enough $800 million-plus P. 23 over past decade

BY AARON ELSTEIN INDEX

admirers call him Super bloomberg news IN THE MARKETS ______4 Mario. Detractors call him BEHIND THE BUCKS: Mario Gabelli REAL ESTATE DEALS ______9 Grasping Gabelli.Whatever says he’s a player, not just a manager. VALERIE BLOCK ______11 he’s called, money manager NEW MASTERS OF THIS CRAIN’S POLL ______11 Mario Gabelli is the champ PARTICULAR UNIVERSE: when it comes to extraordi- went public a decade ago, he CLASSIFIEDS ______18 Jerry Pietroforte (left) and Jeff Fitts of restructuring firm nary executive pay. has paid himself $540 million HOT JOBS ______21 Alvarez & Marsal must The famed founder and in cash and pocketed the vast EXECUTIVE MOVES ______21 rescue what’s left of Lehman chief executive of REPORT majority of the THE WEEK AHEAD Brothers’ real estate ______23 mutual fund com- CRAIN’S $385 million that See AT DEADLINE on Page 2 holdings. WHAT HE’S READING ______23 pany Gamco In- FORTUNATE Gamco shelled out

buck ennis vestors Inc. paid 100 in dividends and himself $46 million THE LIST, P. 14 stock buybacks. 25 NEXT WEEK: CITY FACTS last year. That’s He’s made addi- 5 more than the CEOs of tional sums from owning CRAIN’S DIVES DEEP INTO Goldman Sachs and Morgan closely held Gabelli Group THE NUMBERS THAT MAKE Stanley combined. Capital Partners, which con- ELECTRONIC EDITION Still, it’s a relatively mod- trols Gamco. Oh, and his NEW YORK TICK est take by Mr. Gabelli’s gold family collects about $1 mil-

NEWSPAPER standards.Since his company See SUPER on Page 12 71486 01068 0 20090622-A--0002-MAIN-CCI-CN_-- 6/19/2009 7:08 PM Page 1

IN BRIEF THE CITY’S BARS AND NIGHTCLUBS ARE From heralded launch to GETTING POLITICAL. AFTER YEARS OF FIGHTING with local community boards over everything from liquor license applications to the time a bar is expected to close at night, the industry is hot seat in six months flat trying a new strategy. It is hoping to influence upcoming elections by endorsing candidates who support a vibrant nightlife in The City executive, also says that the bank is grow- That Never Sleeps. On June 22, a group of Instead of capitalizing on recession as planned, ing at a rapid clip, with total assets, in- politicians—including Manhattan Borough new bank is losing money, staff at rapid rate cluding the value of loans on its books, President Scott Stringer and council members more than doubling to $160 million in David Yassky and Eric Gioia—as well as measure allowing out-of-state banks to the first quarter, compared with the pre- celebrities, club owners and others linked to the BY DANIEL MASSEY operate there without having to buy a local vious quarter. And he is about to embark industry, will gather at the launch party for the branch. on a second major capital campaign. Nightlife Preservation Community.The online as heritage bank prepared to open its He cut three teams of New York City SNL Financial analyst Sebastian initiative, sponsored by the New York Nightlife doors last fall—just when the rest of the bankers because, he says, they were “not Hindman says it can often take six to Association, is designed to mobilize voters. banking world was collapsing around eight quarters for a new bank to turn a him—smiling Chief Executive David profit.Herald,however,appears to be los- FEWER PEOPLE ARE SIGNING UP FOR Bagatelle rather incongruously called him- CONFIDENT: David ing money at a brisker-than-normal clip. SATELLITE RADIO. FOR LONG-STRUGGLING self “the happiest banker in New York Bagatelle insists “The fact that they’re losing money Sirius XM, that counts as good news. Fewer City.”Heritage, he insisted, would prosper that changes at isn’t all that surprising,” Mr. Hindman Herald National new customers are leading to lower costs to by deploying a hefty $62 million in initial Bank will move up says.“But the rate at which they’re losing acquire subscribers.They fell 26% last quarter, capital raised and a sparkling-clean bal- the break-even it is.” to $61 per customer, which helped the company ance sheet to lend to businesses at a time point. Mr. Bagatelle contends the bank is on last month report positive “pro forma adjusted when rivals were weighed down by toxic schedule: “Yeah, we lost money, but that income from operations” of $109 million—a assets from the credit bubble. was always the plan.” minute fraction of the $10 billion of net losses Things aren’t so happy now. that Sirius XM has posted over the past 10 The first glitch: Weeks after Her- Investors take note years, but enough to persuade debt-rating firm itage’s November opening, bank offi- the loss of Executive Chairman Daniel GimmeCredit to upgrade its opinion of Sirius cials changed the institution’s name to Healy, an industry veteran who is believed XM to “stable” from “deteriorating.” Herald National Bank rather than to have attracted many of the bank’s initial fight a challenge from a New Jersey investors, may loom even larger than the NEWSLETTERS HAVE CONTINUED TO GROW IN commercial bank that already held one on the balance sheet. Mr. Healy had THE DIGITAL AGE, THOUGH ONLINE EDITIONS rights to the Heritage moniker. been the chief financial officer at North and those available in both print and electronic Other woes have been more Fork Bancorp. for 14 years before it was formats now dominate the industry. According substantive, as a new bank that sold to Capital One Financial Corp.He re- to the 2009 Oxbridge Directory of Newsletters, seemed poised to capitalize on signed his post at Herald on May 19, leav- there are 15,342 newsletters, a 16% increase the credit crisis appears to be ing for “personal reasons,” according to a over the number five years ago. During the foundering. regulatory filing. same period, online-only newsletters have Herald recorded a $7.7 million Mr. Healy did not return several calls leaped by nearly 500%, to 6,055, while print- loss in the first quarter of this year, its seeking comment. Randy Nielsen, who only editions have slid by 43%, to 4,180.The first full quarter of operation. Its return had served as vice chairman, recently was

number available in both print and online has on average assets was -27% for the quar- buck ennis named by the bank as his replacement. held roughly even, at 4,949.The total also ter,according to research firm SNL Finan- Investors have taken note of Herald’s includes fax and PDF newsletters. “The cial. A return of 2% or more is traditional- ‘Yeah, we lost bumpy road. newsletter industry had its Internet wake-up ly considered a sign of a well-managed “This is a challenging time for all banks, call years ahead of the magazine and newspaper bank. money, but and Herald management has been active in industries,” says Trish Hagood, president of its response to these issues,” David Perez, Oxbridge Communications Inc.
Chairman exits that was always managing director of Palladium Equity more recently, Herald lost its highly re- Partners, said in a statement e-mailed to vol. xxv, no. 25, june 22, 2009—Crain’s New York Business (issn garded executive chairman of the board, the plan’ Crain’s. “We are supportive of the steps 8756-789x) is published weekly, except for the 1st and 3rd week of shelved ambitious plans to expand into they have taken.” Palladium holds a 9.9% July, the 1st, 3rd and 5th week of August and the 4th week of December by Crain Communications Inc., 711 Third Ave., New New Jersey,and axed nearly 25% of its staff, stake in the bank. York, NY 10017. Periodicals postage paid at New York, N.Y. and including nine bankers with the title of Meanwhile, Mr. Bagatelle insists the additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot managing director, according to a regula- changes will move up Herald’s break-even Avenue, Detroit, MI 48207-2912. for subscriber tory filing. performing. … At this point, we can defi- point, though he would not say when that service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, Mr. Bagatelle says he was forced to end nitely tell whether a team is going to make moment is expected to arrive. $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2009 by Crain Communications Inc. his New Jersey efforts after the Garden it or not.” “We put ourselves in a better position to All rights reserved. State legislature failed to pass into law a Mr. Bagatelle, a former Signature Bank succeed,” he says.
ECONOMETER

Weekly shift of the city’s economy. City Opera serenades key union   ANY DAY the rain will stop, and the flowers will again blossom. No such luck for an economy awash in bad to renegotiate its terms early to help the to take the brunt of decades of mismanage- debt. Defaults on commercial real estate loans are Contract changes may opera. ment.” Renegotiating these contracts to now not expected to peak until 2011, says a study. mean fewer workweeks, The opera recently reached a two-year keep costs down is critical for City Opera, agreement with Local 802 of the Ameri- which is basically trying to stay afloat.

POSITIVE NEGATIVE if guild members agree can Federation of Musicians, in The performing arts organi-

  CLOUDY  which the orchestra members ac- zation’s endowment has shrunk cepted a 25% cut in their work to $16 million from $57 million S BY MIRIAM KREININ SOUCCAR 25% Y T time to 22 guaranteed weeks from in five years, with the drop com- O N CUT in R 29. ing from both the stock market N M number of U the struggling New York City Opera is decline and the opera’s manage- Y S set to meet with the American Guild of We’re not gonna take it workweeks ment taking $23.5 million to pay Musical Artists on June 22 to negotiate a alan gordon, executive director accepted by off debts and fund operating ex- new contract for its singers and chorus of the guild, denies suggestions the American penses. members. that its members will sign a con- The opera canceled its season -9.4 +17. 2 % -2.6% The opera is hoping to reduce the num- tract similar to the one negotiated Federation of this year because the home it Points decline in Rise in housing Bloomberg/ ber of guaranteed workweeks for the by Local 802. Musicians shares with the New York City June Empire state starts in May from Crain’s NY singers and make some other changes in “We won’t accept any kind of Ballet at Lincoln Center was un- manufacturing April, down 45% Stock Index index, versus May from May 2008 weekly the contract to help it reduce costs for its reduction like the 25% [that the der renovation. It kicks off a new (NY Federal Reserve) (Commerce change shortened 2009-10 season. musicians agreed to],” Mr. Gordon says. but downsized season—the first under Department) The musical artists’contract doesn’t ex- “We don’t want the City Opera to die, but new General Manager and Artistic Direc- pire until July 2010, but the union agreed neither do we want our members to have tor George Steel—on Nov. 5.

2 | Crain’s New York Business | June 22, 2009 20090622-A--0003-MAIN-CCI-CN_-- 6/19/2009 8:08 PM Page 1

NYC JOBS WATCH ARE WE THERE YET? THIS RECESSION HAS stymied economists, who are having a tough time explaining why the city’s labor market seems to be holding up better than anyone expected. Is it TARP? The federal stimulus? Or just a delayed reaction?—DANIEL MASSEY

WEAK SECTORS LOSE FEWER JOBS THAN FORECAST—SO FAR

-21,600 -1,700 Securities Real estate (Each lost only 700 jobs in May) PARTNERS (from left) STRONG INDUSTRIES ARE Stephen Brandman, and Jason, Michael ADDING POSITIONS and Larry Pomeranc. buck ennis Family of hoteliers +5,400 +4,100 Health Educational services services IN THEORY, MANY MORE JOBS builds empire on glitz WILL STILL DISAPPEAR BEFORE THIS RECESSION ENDS

opers,including resort owners,are seeking out Even in the recession,Thompson properties Losses so far Thompson launches Thompson to open their new properties or re- are generating occupancy rates in the low 90s, Predicted losses place their existing hotel operators. according to Mr.Brandman,though room rates restaurant arm, goes “There is a cool factor to them,” says are off their highs. At 60 Thompson, the com- SECURITIES international Michael Barnello, president of LaSalle Hotel pany’s revenue engine, nightly rates are in the -21,600 Properties. Thompson operates two of low $400s, down from about $600 a year ago. -32,400 LaSalle’s 32 properties—Gild Hall, in the fi- nancial district, and the Donovan House, in International expansion PROFESSIONAL SERVICES BY LISA FICKENSCHER Washington.“If you want celebrities to stay in with tough economic conditions expect- -22,900 your hotels,it helps that the operator is friends ed for another year or two, the company is -67,100 sienna miller regularly sips cocktails at with them,” Mr. Barnello says. looking to expand internationally. It is on tap 60 Thompson, and Russell Crowe recently The Pomeranc brothers launched the to manage hotels in Toronto and Seoul open- LEISURE AND HOSPITALITY threw a party there. Further downtown, group with family funds.Their father, real es- ing this year and in 2011, respectively. -8,400 Madonna,Jay-Z and Sean Combs hang out at tate mogul Jack Pomeranc, assem- Do Not Disturb is also ramping PRICE TAG -19,900 sister hotel Thompson Lower East Side. bled a large portfolio of mostly resi- up operations. Jason Pomeranc, co-founder of the dential developments in New Jersey, Last month, Mr. Barnello hired CONSTRUCTION Thompson Hotel Group, can claim much of including affordable-housing units. the firm to run Gild Hall’s restau- -10,500 the credit for attracting these high-profile pa- He also had a smattering of airport $22M rant, Libertine, which prominent -28,000 trons. The 38-year-old master of style and hotels, including the former Rama- THE COST for chef Todd English opened in Sep- buzz at the boutique properties understands da Newark, and put his son Michael 60 Thompson, tember. The restaurant unit man- the celebrity sensibility because he’s part of in charge of them. opened in 2001 ages a number of eateries and bars at COULD THE FORECASTS their crowd. “My business sense came from Thompson properties, including BE WRONG? “I have always had an incredible obsession these years working in the field with Shang at Thompson LES and all the with pop culture,” says the hotelier, who once my father,” says Michael, now 51. outlets at Hollywood Roosevelt. As Wall Street crumbled, experts predicted dated actress Shannen Doherty. About a decade ago, the three began buy- “We are saving money doing our own rampant job losses in the city. The numbers ing land in Manhattan to build hotels. Larry, restaurants,” Mr. Brandman says. haven’t met their expectations, and Family business stands behind glitz 54, a lawyer, developed an expertise in con- For the most part, the group has benefited forecasts have been revised downward. behind the glitz, however, stands a solid struction; Jason, also a lawyer, focused on style from good timing. Nearly a decade ago, about MARCH MAY SO FAR family business. Mr. Pomeranc and his two and design. $22 million covered the cost of buying the real older brothers, Michael and Larry, are well on “We each bring something different to the estate for and building 60 Thompson, and their way to amassing an empire of luxury table,” Jason says. most of the expansion construction was com- -107,800 properties in New York and around the globe. In 2001,just before opening 60 Thompson, pleted before the credit crunch. (Actual They have opened six of their eight hotels in their first Manhattan property, the brothers The partners have one regret, though. losses) the past 18 months. Their portfolio compris- brought in as a partner Stephen Brandman, a With real estate prices returning to affordable es five properties in Manhattan, including graduate of the Cornell School of Hotel Man- levels, the firm is low on funds. -270,000 -254,500 Smyth and 6 Columbus, as well as the head- agement and a 16-year veteran of InterConti- “If we had maybe not invested so much in line-generating Hollywood Roosevelt in Los nental Hotels. Although it opened on Sept. each individual property, we could have more Angeles. 10, the SoHo hotel proved to be a hit. hotels in New York City and other markets,” Losses and gains are since the August 2008 NYC employment peak. Sources: Data are from an Eastern Consolidated analysis On a winning streak, Thompson recently “We emerged from 9/11 growing,” Mr. Mr. Brandman says. “I wish we had the cash of NYS Department of Labor statistics. Predictions are from the launched a restaurant management arm, Do Brandman says. “That’s why hotel owners are reserves set aside so we could take advantage Independent Budget Office, May 2009.

Not Disturb.And a growing number of devel- in talks with us to manage their properties.” of this economy.”
istockphotos

June 22, 2009 | Crain’s New York Business | 3 20090622-A--0004-MAIN-CCI-CN_-- 6/19/2009 5:02 PM Page 1

After brutal scorching, some IN THE MARKETS see green shoots in hedges by Aaron Elstein Fewer dead funds. ingstar. “We don’t know if this is a stable trend yet.” Reform could bust Guess that passes Any recent hedge fund gains are based on vastly reduced asset val- stockbrokers’ chops for good news lately ues—after all, the average hedge fund lost 21% last year.“Some funds eing a stockbroker is hard have been losing money since work.The cold calls to BY HILARY POTKEWITZ 2007,” Ms. Papagiannis says. “The istockphoto bar is to make up the money that prospective clients are no GOING FOR BROKERS istockphoto B hedge fund boosters cheered the they’ve lost.” fun. Angry e-mails from existing NUMBER OF news last week that “only”376 funds customers when the market goes FIRM STOCKBROKERS had liquidated during the first quar- ‘The bar [for On second thought: Chill down are even worse. Bank of America- ter—about half the record 778 clos- also not helping the bulls’ case: 20,000 surviving funds] And now, heaven forbid, the Merrill Lynch ings in fourth-quarter 2008. Nearly 25% of private equity funds Morgan Stanley Word of the slowdown in shut- is to make up aren’t expected to survive the year, Obama administration is Smith Barney 18,500 downs came on the heels of May re- and more than a quarter of venture proposing that brokers be held Wells Fargo 16,000 ports showing the best monthly re- capital firms are seen as ripe for col- the money that Edward Jones 12,000 sults for hedge fund managers in lapse, according to a survey of pri- more responsible when their more than a year. they’ve lost’ vate equity investors released this investment recommendations go UBS 8,000 The average fund returned 5.2% month by Coller Capital. And 75% awry. Shed a tear for the 651,000 Raymond James 5,000 in May, according to data firm of the investors thought their pay- Sources: Companies Hedge Fund Research Inc. Emerg- outs would deteriorate in coming people of this vocation. ing-market funds were especially months. Here’s the deal: Deep in hot, returning 13% on average, Such gloom hasn’t dampened President Barack Obama’s financial reform package is Morningstar reports. “We do like to look at things the enthusiasm. At least 150 new language calling for the establishment of a “fiduciary duty” for Signs of a hedge fund bottom? from the perspective that we’re over hedge funds were launched in the It’s a matter of debate. The second the hump,” Mr. Heinz says. “What first quarter. And if seminar enroll- brokers offering investment advice to clients. It might sound half of 2008 saw the unprecedented we’re looking at is a continuation ment is any indication, more are yet arcane, but for Wall Street the change would be profound. It liquidation of 1,200 hedge funds. and increase in the level of risk tol- to come. Financial Technologies means brokers would have to take responsibility when their That left about 9,000, with total as- erance that investors are willing to Forum had its first “How to Launch advice goes bad, just as a class of competitors called registered sets of about $1.5 trillion, down take on.” a Hedge Fund” seminar in early from $2.5 trillion at the end of 2007. Not everyone is long on hedge June. About 100 people signed up investment advisers do. For years, stocks or other investment ideas to funds and other kinds of alternative for the one-day event. brokers at places like Merrill Lynch or clients. But if they don’t do that, Break out the Champagne investments. “Not a bad number for our first Smith Barney have been able to what good are they? Mr. Hintz says for kenneth heinz, president of “Keep in mind that those time out,” says an FTF spokes- dodge responsibility for bad advice, they would be relegated to trying to Hedge Fund Research, last week’s [hedge] funds that are still in busi- woman. Indeed, the company has so long as the investments they get as much of their customers’ rare good news was enough to break ness are struggling,” says Nadia Pa- scheduled a second hedge fund- offered were “suitable” for a client. money as possible and holding out the Champagne. pagiannis, an analyst at Morn- startup session in September.
Brad Hintz, an analyst at Sanford their hands when times get tough. C. Bernstein & Co., says the change, if “It would make being a retail adopted, means lots of brokers broker a much less exciting job,” he Many Solutions.One Relationship. would no longer be able to pitch says.

$ $ $ $ 39,225,000 20,000,000 30,000,000 17,500,000 the 1990s, says he plans to fill the RevolvingCredit Senior RevolvingCredit RevolvingCredit Getting cleared Facility Credit Facility Facility Facility Class A space by charging less rent Provided for Provided for for new career than other area landlords. Provided for Provided for Second acts on Wall Street are kenneth pasternak (below)— common, but Mr. Pasternak really once one of Wall Street’s most struggled for his. In 2005, the SEC successful charged him with failing to stop traders—was last the alleged fraud at Knight, which $24,750,000 $10,250,000 $4,500,000 $2,610,000 heard from in had paid a $79 million fine in 2004 RevolvingCredit Senior Secured Senior Secured Term Loan 2001 when he left to settle with the commission. Facility Credit Facility Credit Facility the firm he’d Most executives would have paid a Provided for Provided for Provided for Provided for founded, Knight fine and moved on, but Mr. Securities, amid Pasternak fought the charges and

allegations that bloomberg news went to trial. Last year, a federal Knight chronically judge cleared Mr. Pasternak. cheated customers. With that painful episode After fighting the Securities and behind him, Mr. Pasternak this Exchange Commission and winning, summer is going to start raising he’s back—as a real estate investor. more money for his real estate firm Earlier this month, a property and a hedge fund that he’s quietly investment firm he helps run, KABR, run the past few years, Chestnut acquired a 235,000-square-foot Ridge Capital. Ultimately he’d like to office building off the New Jersey see the firms, which between them See why we’ve earned our reputation as a leadingprovider of Turnpike from American Inter- employ about 15 people, grow to workingcapital financingto growingcompanies. For more information national Group.The price was about include something like 100 staffers. about Webster Business Credit, contact Warren Mino, President, at $11 million. Mr. Pasternak, who has “I’m ready to help build dabbled in real estate investing since something again,” he says.
212-806-4500 or visit our new website at Websterbcc.com to submit an online application for credit or find our nearest office location. IN WHICH WE TOSS A SOFTBALL AT THE BANKS

SM NOW THAT GOLDMAN SACHS and MORGAN STANLEY have repaid their government bailout money, it’s time to play. For a good cause, of course. The banks, along with top law,

03/09 Websterbcc.com accounting and private equity firms, will be taking part in New York • Boston • Hartford • Atlanta • Chicago • Memphis • Charlotte • Portland • Cleveland a softball tournament this Thursday in Central Park that’s Webster Business Credit Corporation is a subsidiary of Webster Bank, N.A. Member FDIC. Equal HousingLender. Webster Business Credit is a service mar kof expected to raise $80,000 for Urban Dove, a charity that Webster Financial Corporation. The Webster Symbol is registered in the U.S. Patent and Trademark Office. helps at-risk youth. istockphoto

4 | Crain’s New York Business | June 22, 2009

20090622-A--0006-MAIN-CCI-CN_-- 6/19/2009 4:59 PM Page 1 NEWYORKCITY BOSTON SEATTLE SANFRANCISCO LOSANGELES CHICAGO

Rockefeller Center NEW YORK,NEW YORK edited by Valerie Block is proud to announce the following lease renewals:

Venro Petroleum Corporation

ATLANTA represented by Tatiana I. Tarassenko Mike’s money boosts local TV stations WASHINGTON,D.C. of STUDLEY ocal television advertising sales have been suffering alongside the automotive industry. But there was a bright spot in The Leitner Thomas Group the picture last month: the money that Mayor Michael Bloomberg

AMSTERDAM MILAN LONDON PARIS FRANKFURTMUNICH SÃOPAULO RIODEJANEIRO BEIJING BANGALORE represented by L has been spending on his re-election campaign. Mark F. Lauzon According to an industry executive, ad revenue for the six English- of Cushman & Wakefield, Inc. language stations plunged 27% in May—a devastating drop, but an improvement on the stations’ performance in recent months. for leasing information, please contact: Since October, monthly declines have been above 30%. Heather Kahn “The biggest difference is that Bloomberg has been Samantha Augarten spending,” says the executive. Peter R.C. Brindley A May 15 campaign filing shows that the mayor has spent Theodore J. Koltis a total of $18.5 million this year. A spokeswoman declined to say how much has been devoted to television, but one insider 212.715.0300 put the number at around $10 million beginning in March. The bleak advertising climate has forced rival stations to work together. WNBC, WCBS, WNYW and WPIX are launching a local news service this week that will allow

them to pool resources and share video footage. bloomberg news

Manges, Shula’s steakhouse is Manhattan locations. Now, in the Steak spots feed near Skadden Arps Slate midst of the latest downturn, the on bankruptcy Meagher & Flom, and restaurant has signed its first Gallagher’s is near restructuring franchise agreement. in a bankruptcy boom, lawyers firm AlixPartners. “We offer comfort food, which feed on fallen companies—but is a big draw in this economy,” they also feed on steak, says Joshua explains Michael Eisenberg, 100% LEASED M. Brown, the blogger behind The Hotel ratings a partner in the Alice in Reformed Broker. by the pros Wonderland-themed Mr. Brown has been observing chain along the crowd at Bobby Van’s in the need to know the best with his wife, lobby of his midtown building. hotel for pet owners? How Haley Fox, and MONDAYONDAY PROPERTIES “There is a distinct ebb and flow about the resort least likely her sister of the types of people in there,” he to kick patrons out for Lauren Fox. announces the followingfollowing says. “Right now, I can definitely smoking a joint on the The first lease trtransactionansaction at say the lawyer crowd outweighs balcony? franchise will open the finance crowd by a lot.” How Travelers can get the answers later this year in to those queries and more on Greenwich, Conn. Mr. Eisenberg 1440 BROADWAY Oyster Hotel Reviews, a new Web has fielded queries from potential CELEBRATING O site that follows the magazine franchisees from upstate New INNERWORKINGS TO MARK THEIR model of having journalists—as York and from as far away as Las “inaugural Tuesday” opposed to customers—visit, rate Vegas and Saudi Arabia. has leased 22,760 square feet game, the Brooklyn and review hotels. Most popular with little girls, for the entire 22nd floor Cyclones are “If you look at what’s out there, the East 81st Street shop brings in becoming the there are hotels talking about just over $500,000, while the themselves and being talked about other two spots generate revenue Baracklyn InnerWorkings Represented By: by consumers, but there isn’t any in excess of $1 million each. Cynthia Wasserberger | Dan McCarthy Cyclones. And in authoritative independent voice,” Matt Carolan | Ed Ditolla honor of the 44th says Oyster Chief Executive Elie Contributors: Kira Bindrim, Lisa Ficken- Jones Lang LaSalle president, the first Seidman. scher, Matthew Flamm, Hilary Potkewitz 3,500 fans at Coney At launch, Oyster.com has 10 Island’s KeySpan Park For Leasing Information Please Contact: travel writers on staff and features will receive Barack hotels in Miami, Aruba, Jamaica CHEFS TAKE Monday Properties | Craig Panzirer | 212.490.7100 Obama bobble- and the Dominican Republic. In STAGE head dolls. addition to its myriad rankings— the site includes everything from GENERATION HARVEST hosts “superclean hotels” to “best cliff- its annual Summer in the City can he tell the difference? “Let’s diving”—Oyster offers reviews restaurant tasting at the Metro- just say there’s a little less swagger that feature more than 100 photos politan Pavilion on Tuesday. in the bar area.” each. Attendees this year are in for Mr. Brown identified the more than the food. For the first steakhouses nearest the busiest Go ask Alice, time, chefs such as Butter’s bankruptcy law firms—and Brandon Clark, Chez Lucienne’s predicts they will be victims in Connecticut Matthew Tivy, D’Artagnan’s Ari- when the bankruptcy bubble ane Daguin and Recette Private bursts. alice’s tea cup, a favorite of Dining’s Jesse Schenker will get Rothmann’s Steakhouse, he Upper West Side mommies and notes, is around the corner from daughters, opened during an on stage to perform with the turnaround firm Alvarez & economic swoon in December Arlene’s Grocery Rock and Roll Marsal, Uncle Jack’s is just blocks 2001, and the kid-friendly eatery Karaoke band.

230 PARK AVENUE, SUITE 500, NEW YORK, NY 10169 212.490.7100 from law firm Weil Gotshal & has since expanded to three 1000 WILSON BOULEVARD, SUITE 700, ARLINGTON, VA 22209 703.284.0200

www.MONDAYRE.com CN013011 6/17/09 3:22 PM Page 1

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For expanded coverage of the conference, including video, go to http://futurenyc.crainsnewyork.com. 20090622-A--0008-MAIN-CCI-CN_-- 6/19/2009 4:59 PM Page 1

ALBANY Waiting for the dough insider claims. THE THREAT TO NEW YORK CITY, other municipalities and many businesses The source adds that even posed by the state Senate shutdown is growing by the day. Bills authorizing before Mr. Espada’s accomplice, cities and counties to collect sales taxes haven’t been enacted, jeopardizing THE INSIDER Hiram Monserrate, returned to the hundreds of millions of dollars in anticipated revenue, and Democrats, some GOP members companies face the loss of subsidized energy and tax breaks. were having second thoughts. Without legislative action, mayoral control of city schools by Erik Engquist and Daniel Massey “They’ve made a strategic blunder,” will expire June 30—which could result in the return of the the Democrat says. “There was a discredited Board of Education. Likewise, Power for Jobs, a good chance that they could take program that has provided low-cost electricity to businesses back the Senate next year.” since 1997, needs Senate action to continue Senate fracas transforms 2010 The GOP’s campaign after this month. The Assembly has passed a premise—that as the majority, bill to extend it for a year. emocrats hope that discontent within Senate Democrats were making a mess of “If the Senate can’t convene even on relatively Republican ranks will break the new leadership duo of things—is now moot. Instead, noncontroversial issues, it would have dire consequences for Democrats will blame the GOP for Sens. Dean Skelos and Pedro Espada Jr.—and, with an local governments,” says Russ Haven, legislative counsel for D bringing the Senate to a standstill the New York Public Interest Research Group. “They’ll have to eye on the 2010 by making a dark-of-night deal cut services. They’ll have to redo their budgets.” elections, are trying to with unsavory characters. “I think The budget agreement that Mayor Michael Bloomberg and the City help the process along. this is an albatross around Senate Council reached last week includes $887 million from a sales tax hike and a Republicans’ necks,” the insider loophole closing that require Senate approval. And OKs are also needed for Last week, Sen. David says. Valesky bills requested by the city to increase tax exemptions for small business , D-Syracuse, owners, provide incentives for biomedical research and development firms, called for “reasonable Tax doesn’t and fix elements of the city’s tax code that drive out businesses. and rational GOP Organized labor, environmentalists, good-government groups and tenant leaders to step sell on S.I. advocates were also set to see their pet bills passed before the Senate forward.” Sen. Jeffrey staten island’s Assembly stopped functioning June 8. Unions want companies receiving Industrial members voted against the half- Development Agency subsidies to guarantee creation of prevailing-wage Klein, D-Bronx, said in jobs and for the state to raise its low unemployment payments. In a reprieve SENATE BFF: Sens. point city sales tax increase Pedro Espada Jr. a statement that Wednesday, taking their cue from for business, those measures are now stymied. Bills that would give basic (left) and Dean Republicans “have the borough’s City Council rights to farm and domestic workers also hang in the balance, as Skelos are resisting failed their delegation. Democratic does paid family leave. efforts to break Assemblyman Matthew Titone says Bills legalizing gay marriage, promoting affordable housing and their alliance. constituents” by island legislators informed reforming campaign finance may not be realized. The Assembly ap photo insisting that Mr. Assembly Speaker Sheldon Silver will adjourn this week if the Senate stalemate isn’t broken. Espada have “power to control the Senate and a position one how they would vote. “He knew Environmental groups had expected passage of a bill to require heartbeat away from the governor’s office.” what we had to do,” Mr.Titone manufacturers to collect some or most of their electronics after says. “He did not pressure us at all.” consumers are finished with them. Other bills would reduce Republicans issued a statement investigation. As president of the Mr. Silver didn’t need to—the greenhouse gas emissions 80% by 2050 and direct revenue last week saying they stand united Senate, Mr. Espada vowed to measure passed 96-to-51.The hike generated by state auctions of emission allowances to green causes. with Mr. Espada. But a bring the gay marriage bill up for a could drive even more Staten The governor has a slew of bills waiting for approval, including ones to Democratic Senate insider insists vote but had not discussed it with Island shoppers to New Jersey, create a less generous pension tier for new state employees. that many GOP senators are the GOP rank-and-file. “That where taxes are lower on gas,

uncomfortable with the Bronx issue has caused major friction cigarettes, liquor and high-end istockphotos Democrat, whose residency and within the Republican clothing, and there is no nickel discretionary funding are under conference,” the Democratic deposit on beer and soda. May expenditures were $244 Circumventing million below projections, largely the bond cap because the state used more federal stimulus money for Medicaid than mayor Michael Bloomberg is not a expected. fan of personal income taxes, but he’ll use them to borrow money cheaply. A bill pending in Albany When unions would let the city surpass a cap on attack Transitional Finance Authority bonds, with amounts over the cap a number of insurgent City applied toward the general Council candidates are receiving obligation bond cap.TFA bonds institutional support, putting pay less interest because investors incumbents at risk of defeat in consider them safer. “TFA is September’s Democratic primary. backed by personal income tax In what promises to be a test of money that goes into a lockbox, so unions’ political might, 32BJ SEIU, it’s viewed as more secure,” says representing building workers, and Chuck Brecher of the Citizens the Hotel & Motel Trades Council have Budget Commission. targeted several races, as has the union-backed Working Families Party. In Brooklyn, 32BJ and Hotel Gap opens Trades are supporting housing We’re pleased to announce in state budget advocate Jumaane Williams over Councilman Kendall Stewart and Anheuser-Busch InBev paterson administration number- Maritza Davila over Councilwoman one of the world’s fi ve largest consumer products companies crunchers are trying to determine Diana Reyna. Davila also has the whether a $348 million—or 5%— backing of Assemblyman Vito Lopez, has leased a full fl oor of shortfall in May revenue, after a the Brooklyn Democratic leader. 4.5% shortfall in April, reflects a More hotel union endorsements 31,557 rsf trend or a blip. If it’s a structural are imminent. Labor often follows problem, the state would need to act the WFP,which has endorsed for its New York City offi ce. early this summer to cut spending. teacher Daniel Dromm over Queens Budget officials say they’ll get a Councilwoman Helen Sears, Debi Dana Pike, of George Comfort & Sons, and John G. Udell and Jim Sousa, clearer picture after they have Rose over Staten Island Councilman of Weichert Commercial Brokerage represented the tenant in this transaction. tallied first-quarter estimated tax Ken Mitchell, Fernando Cabrera over payments from businesses and Bronx Councilwoman Maria Baez high-income individuals, which and Drum Major Institute head For Leasing Information: had to be postmarked no later than Mark Winston Griffith over Brooklyn
David L. Hoffman, Jr. | 212.318.9767 Wendy Miller | 212.318.9764 June 15. Councilman Al Vann. [email protected] [email protected] For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider

8 | Crain’s New York Business | June 22, 2009 20090622-A--0009-MAIN-CCI-CN_-- 6/18/2009 6:24 PM Page 1

REAL ESTATE DEALS

The terms of the deal,which cov- Planning for its financial security ers roughly 11,500 square feet of the building between East 58th and East 59th streets,were not disclosed. NBA had been in the market for was great for us to keep them here.” The NBA was represented by However, brokers say a sublease in Money manager about two years but opted to stay at Others on the team included Newmark Knight Frank Chief Ex- the building recently fetched $65 a TIAA-CREF the tower between East 51st and FirstService Executive Chairman ecutive Barry Gosin and brokers square foot and estimated that a di- East 52nd streets—its home for 33 Robert Freedman, Chief Executive Moshe Sukenik and Corey Borg. rect lease from the landlord would is leasing a dozen years. The asking rent for the deal Mark Jaccom and broker Christina hit $75 to $80 a square foot. of its midtown floors was $85 a square foot. Plakopita. Greg Taubin,a broker at Studley “The building has always had a “This is a very stable landlord Mentor Partners who represented the company with good relationship with the NBA,” without a lot of debt on the build- thinks ahead his colleague Craig Lemle, says it BY THERESA AGOVINO says Harry Seherr-Thoss of First- ing,” says Mr. Seherr-Thoss, who took about a year to close the deal Service Williams. The firm repre- adds that the tower recently got a investment services firm Men- because “the market kept changing.” he retirement fund sented the landlord, which is con- new air-conditioning system and tor Partners renewed its lease for Jones Lang LaSalle represented giant known as TIAA- trolled by the Alexander S. Onassis new elevators. The Onassis Cultur- half of the sixth floor of 500 Park Ave. the landlord, a fund run by Morgan CREF is shopping a Public Benefit Foundation USA.“It al Center is also in the building for another five years. Stanley.
dozen floors of its 27- story headquarters at T730 Third Ave. to generate revenue and manage its real estate more ef- fectively. TIAA-CREF has suffered along with its money-management brethren as the stock market col- What do you call a firm that adds more than lapsed in 2008 and the credit crisis 80 business lawyers in just four months? worsened. Last year, its assets fell 17%, to about $327.6 billion. A company spokesman says that 30% of the building was vacant and that employees at the Third Avenue loca- GAMECHANGER tion will be consolidated onto some low- er floors. The PHILADELPHIA NEW YORK higher floors Corporate Corporate Demonstrating what it takes to win in today’s business environment. are being of- Charles G. Kopp David E. Bronston Jason M. Shargel Robert E. Fischer fered for rent. Michael M. Sherman Martha J. Flanders A solid strategy for growth. A strong financial platform. A proven So far, the Asaf Hahami record of strength in adversity and performance under pressure. TIAA-CREF Commercial Litigation Albert J. Pinzon leasing push is John V. Donnelly William Rosoff Cozen O’Connor’s full lineup now has 550 lawyers focused on Brian P. Flaherty Stuart A. Shorenstein off to a good John P. Moses high-end, complex litigation and business law matters, including start. Research Lisa Myers Commercial Litigation corporate, real estate, bankruptcy, health and IP—as well as private 730 Third Ave. firm Guide- TamarS.Wise Jennifer F. Beltrami client services. Brian Levine point Global Energy and Utilities Jill L. Mandell just inked a seven-year lease in the Jeffrey J. Norton Kenneth G. Roberts With 23 offices worldwide, Cozen O’Connor is the growing choice tower, between East 45th and East Richard Rodriguez Government Relations Angelo Savino for some of today’s most discerning clients—and attorneys. 46th streets. The asking rent for the Mark L. Alderman James L. Simpson deal, which covers nearly 31,000 David F. Girard-diCarlo square feet, was $46 a square foot. Edward J. Hazzouri Intellectual Property Amy Divino For worldwide offices, visit us at cozen.com. Guidepoint plans to move in Private Client Services Michelle J. Dorman next month. A quick turnaround Leonard J. Cooper Aude Gerspacher Robert I. Friedman Andrew P. Nemiroff was necessary in the wake of its pur- Edward M. Glickman chase of Vista Research from Stan- Joshua L. Raskin David R. Glyn Martin G. Raskin dard & Poor’s last month. Guide- Adam Grandwetter David B. Sunshine point is currently located at 444 Matthew H. Kamens Thomas A. “Tad” Decker, Chief Executive Officer David S. Kovsky Private Client Services Madison Ave. Lester E. Lipschutz Judith E. Siegel-Baum 250 Park Avenue The fully furnished space was Alexander Sanford Richard J. Duffy definitely a draw for Guidepoint, Amy Neifeld Shkedy New York, NY 10177 Steven G. Winters Herbert B. Fixler says Andrew Simon, a broker at Gail Goldfarb 212.509.9400 Real Estate Donald J. Hayde NAI Global New York City, who Charles B. Law, Jr. represented the tenant with his col- Christine R. Deutsch 45 Broadway Atrium, Suite 1600 Herman C. Fala Stephanie Lehman league Logan Gurtman. He de- Anthony Faranda-Diedrich New York, NY 10006 scribes TIAA-CREF and its bro- Helene S. Jaron Real Estate 212.509.9400 Christian Beltz kers as “very accommodating.” Elizabeth E. Kearney Bernard Lee William F. Davis TIAA-CREF was represented Diana C. Liu Kenneth K. Fisher by CB Richard Ellis Inc. brokers Henry F. Miller Paul J. Proulx Richard B. Salomon Zachary Freeman and Howard Shawn Neuman Adam M. Silverman Abby M. Wenzel Fiddle. Robert A. Silverman Susan E. Stanier WASHINGTON, DC Matthew I. Weinstein Government Relations James R. Williams Mark L. Alderman Landlord scores big Thomas P. Witt David F. Girard-diCarlo with NBA renewal Tax White Collar Joseph C. Bright Kathryn R. Yingling olympic tower associates scored Thomas J. Gallagher a slam dunk by renewing a 10-year, Cheryl A. Upham WILMINGTON, DE 153,000-square-foot lease at 645 Joshua C. Weinberger Bankruptcy Arthur A. Zatz Simon Fraser Fifth Ave. for sought-after tenant Barry M. Klayman the National Basketball Association LOS ANGELES The confidence to proceed. in one of the largest transactions of Litigation HARRISBURG Erik L. Jackson Tax the year. Reeve Segal Dan A. Schulder ® The deal is a major coup at a time when tenants—especially large, high-profile ones—are scarce, and © 2009 Cozen O’Connor their options are plentiful. The

June 22, 2009 | Crain’s New York Business | 9 20090622-A--0010-MAIN-CCI-CN_-- 6/19/2009 1:54 PM Page 1

VIEWPOINT T H E F U T U R E O F N E W YO R K CI T Y A big opportunity for small biz editor in chief Rance Crain publisher, vp Jill R. Kaplan ast week’s Crain’s Future of New York in New York City are several times higher than the average editorial director Greg David City conference, the second in a series of taxes of the nation’s other largest cities. Crucial here is the EDITORIAL editor Xana Antunes gatherings this year to bring together income tax, because relatively few cities impose one. For managing editor Glenn Coleman business and government leaders, made mobile businesses, the city income tax is a major incentive to deputy managing editors Valerie Block, Erik Ipsen two fundamental points about small leave; for the rest, it reduces the incentive to expand and grow. contributing editor business in New York. Many government Pilot programs don’t end bureaucratic harassment. The Elizabeth MacBride columnist Alair Townsend officials are taking innovative steps to help unhappy fact of life is that most small retailers and senior reporters Theresa Agovino, entrepreneurs through the recession. No one is prepared to contractors believe they are harassed by city agencies. It’s Aaron Elstein, Erik Engquist, Lisa Fickenscher, tackle the issues that make New York just too big a hurdle not that the inspectors are out to “get” businesspeople, Matthew Flamm, Miriam Kreinin Souccar L reporters Barbara Benson, Amanda Fung, for many small firms. exactly. Rather, it’s that Daniel Massey, Adrianne Pasquarelli, Hilary Potkewitz Council Speaker Christine Quinn’s keynote address With politicians the rules are so difficult art director Steven Krupinski announced three new initiatives: an amnesty period for to follow, many deputy art directors Carolyn McClain, companies to correct violations and escape fines under some ardently courting Daniel Mednick different agencies have staff photographer Buck Ennis city regulations; a panel to review the city’s thousands of entrepreneurs, their own enforcement copy desk chief Wendy Zuckerman rules and eliminate those that are antiquated or redundant; teams, and everyone copy editor Thaddeus Rutkowski research editor Denise Southwood and a pilot program to coordinate inspections of new now’s the time to has budget targets to www.crainsnewyork.com restaurants.These come after the Bloomberg administration meet. For all the web editor Brian Tracey level the playing senior producer Elisabeth Butler Cordova created a lending alternative for startups and a program to speaker’s good producer Kira Bindrim

provide incubator space, increased money to help firms hire field in New York intentions with the EDITORIAL AND ADVERTISING OFFICES workers, and extended a series of assistance centers. new initiatives, the 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 Many companies will find the new and reinvigorated latest city budget advertising: 212.210.0259 programs from the city—as well as expanded efforts by state increases the amount Cable craincom nyk and federal governments—highly valuable. However, the Fax 212.210.0499 of money to be collected in fines by $110 million. No pilot Entire contents ©copyright 2009 Crain beneficiaries will represent a tiny fraction of the 200,000 program will offset the harm that increase will bring. Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP small businesses in New York City.The rest will continue to Because small business owners are being so ardently Inc., used under license agreement. be dragged down by two inescapable burdens. courted by politicians, entrepreneurs have a unique TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. Small tax cuts don’t change the big picture. Two studies in opportunity to affect public policy. It’s appropriate to thank $3.00 a copy, $59.79 one year, $109.79 two years. the past decade by the Independent Budget Office have Mayor Michael Bloomberg and Ms. Quinn for what they’ve www.crainsnewyork.com shown that no matter how one crunches the numbers, taxes accomplished—and to ensure they understand it’s just a start. ADVERTISING AND MARKETING advertising director Trish Henry senior account managers Cornelius P. Gore, Courtney McCombs, William E. Squitieri LETTERS TO THE EDITOR commercial real estate sales manager Cory Marks account executives Jacqueline Iovino, Irene Irvill, Anthony Mowad sales manager, classified print & online John Gallagher Urgent, but not an emergency sales coordinator, print & online Lulé Haznedari INSURER TAKES ISSUE representing over 12,000 1.4% of the budget, in contrast to not just one person, that makes us sales coordinator Anita Perrino WITH INSOLVENCY CLAIM practitioners and several hundred the less than 0.5% it gets now so effective and so threatening to credit Todd J. Masura 313.446.6097 facilities. Implying that PRI was (with considerably more acreage to the Bloomberg administration. marketing director Amy Crossman marketing manager Jill H. Bottomley crain’s June 15 article about a so- attempting to change the rules to manage). —geoffrey croft circulation manager Andrea Richardson called medical malpractice mask financial issues is factually Just as we don’t expect people NYC Park Advocates assistant circulation manager emergency did not accurately incorrect. to raise money to buy fire engines Rosalie Ford reflect the current state of New If anything, PRI has or sanitation trucks, so we STANDING UP general manager, interactive York medical malpractice reform, continually [tried] to perfect its shouldn’t have to rely on private FOR RESIDENTS Marc Minardo nor did it accurately illustrate the business, despite the dysfunctional groups to run our parks.That’s web developer, interactive measures taken by Physicians’ regulatory system in place to guide what our tax dollars are for. Any every citizen of New York City Chris O’Donnell Reciprocal Insurers and others to us. other system discriminates against should loudly applaud the efforts NEW YORK PRODUCTION best serve our insureds. —anthony bonomo poorer neighborhoods. of Mr. Croft and NYC Park production and pre-press director While it’s clear the system is in Chief executive —carol greitzer Advocates. Michael Corsi dire need of reform—which PRI Physicians’ Reciprocal Insurers Crain’s article ignores the vast advertising production manager and others strongly support— POWER OF MANY number of local civic, community Suzanne Fleischman Wies [claiming that there is] a “state of CITY PARKS GADFLY OUT OF ONE and environmental groups PUBLISHED BY CRAIN COMMUNICATIONS INC. emergency” only serves to cause HAS RIGHT BUZZ throughout this city that have chairman Keith E. Crain physicians undue concern. i am very grateful that Crain’s learned how to combine their president Rance Crain It is also patently untrue that as a former colleague of ex-Parks chose to highlight this important armies of one or two or three or 10 secretary Merrilee Crain PRI lacks the funds to protect our Commissioner Henry Stern, let me work. But by putting quote marks into coalitions that represent treasurer Mary Kay Crain insureds. During its 27-year point out that both he and on “group” and hundreds of neighborhood executive vp, operations William Morrow history, PRI has never reported a current Commissioner questioning the plural of residents. senior vp, group publisher Gloria Scoby negative cash position, and if we Adriane Benepe should be Advocates, Crain’s did Although Mr. Croft may group vp, technology, circulation, manufacturing Robert C. Adams and other insurers were not happy about Geoffrey not accurately portray appear to be a single individual, vice president/production & required by state regulations to Croft’s campaign to get our situation. rest assured that there is a huge, manufacturing David Kamis carry MMIP losses on our books, more funding for city The absence of a paid unseen “army of many” out here chief information officer Paul Dalpiaz we would have a surplus. parks (“An army of one,” staff should not be who are working side by side with corporate circulation director Despite carrying those losses June 15). misconstrued as the him. Many of us head local Patrick Sheposh on our books, our cash reserves When Mr. Croft absence of an volunteer groups that coalesce into founder G.D. Crain Jr. (1885-1973) have been deemed actuarially highlights deplorable organization or group. It large, informal coalitions that chairman Mrs. G.D. Crain Jr. (1911-1996) adequate to meet all long-term conditions, it is to is precisely because of work together on common

obligations. remind us that under buck ennis the work this concerns. PRI is a market leader, Robert Moses, Parks got Geoffrey Croft organization does, and —ida sanoff

10 | Crain’s New York Business | June 22, 2009 20090622-A--0011-MAIN-CCI-CN_-- 6/19/2009 2:21 PM Page 1

TiVo, I watch more TV than ever. I find it much easier to keep up with network shows now that they’re stored and waiting for me. Of course, these devices have obliterated the business model of traditional media companies, which depend on advertising and subscrip- tion revenue. After massive pum- meling, executives who run many of these firms are beginning to get the picture. Smart TV executives have been bowing to the gadget economy for some time. Shows like The Colbert Report and American Idol are masters of product placement—the only way to monetize TiVo and iPhone audiences. I routinely skip commer- cials but can’t help watching Ford’s American Idol “videos,” which fea- ture stars from the show dancing and singing in and around Ford cars. These kinds of talk and reality programs are likely to become even

john h.john howard more prevalent as commercial-skip- Audit Tax Advisory ping eats away at ad revenue. That’s why NBC is willing to take an ex- pected beating in the ratings to add Jay Leno to its prime-time schedule: Steve Mayer CPA Now, the device The host can hawk products. 212.682.1600 Radio stations seriously lost their www.amper.com cool earlier this decade, when they is the message loaded up on commercials and dumbed down their programming. Now, as stations go digital, they’re he gadget age is ramping up rapidly, thrilling giving listeners more options, even consumers and killing traditional media. letting them create their own Amazon’s newly introduced Kindle DX—a playlists. Clear Channel’s online media player, iHeart Radio, offers souped-up, $489 model—is already sold-out. At more than 350 stations for con- last look, the online retailer was taking orders for sumers to stream. It’s also available June 22 shipment. Geraldine Laybourne, founder of Oxygen, as an app for the iPhone. Users can T tag songs and immediately buy and legendary advertising executive Linda Kaplan Thaler are them at iTunes. Print publications are having the Kindle zealots. They swear they would never toughest time making the leap. But both own the first itera- give it up. The device is e-readers are giving desperate news- tion (as do I) and are both status symbol and paper execs like The New York Times’ now exclusively digital. media center. One— Arthur Sulzberger Jr. the opportu- (Yes, even ladies of a most likely a younger nity to save the subscription model. certain age are aban- one—could get by with He and several other news chiefs doning print!) just an iPhone, giving have made deals with Amazon to Of course, the up landline, cable and put their content on Kindle. The iPhone is the gadget Internet connections, bigger-screened DX, which offers supreme. And it just got and actually save mon- enhanced graphics,could encourage a lot cheaper: $99. I ey. younger people to become sub- dearly want one but re- VALERIE Time- and place- scribers. upped with Verizon for BLOCK shifting devices like All of these efforts are in their in- a basic phone because I TiVo and Slingbox let fancy,but once successful models are didn’t want to pay $100 consumers watch TV figured out,some of the dear depart- for the monthly iPhone plan. when and where they want to, with ed—like local newspapers—could Still, those who have an iPhone or without commercials. With be reborn, gadget-ready.

CRAIN’S ONLINE POLL

Is the city’s new budget too fat? No. Bigger spending cuts 138 VOTES would have had Date of poll: June 16 a severe impact on city services Yes. The city is 37%. and lowered the making a risky quality of life for bet the economy all New Yorkers. will rebound next .63% year, and we need deeper cuts now to prevent more pain later.

For this week’s questions: Go to www.crainsnewyork.com/poll to have your say.

June 22, 2009 | Crain’s New York Business | 11 20090622-A--0012,0013-MAIN-CCI-CN_-- 6/18/2009 8:34 PM Page 1

EXECUTIVE PAY

You Had Me at Hello Nothing says welcome to the company like a $52 million signing bonus. Just ask the highest-paid CEO in New York last year.

BY AARON ELSTEIN

he ink had barely dried on the $25 million check that Peter Kraus got for three months of work at Merrill Lynch when he joined AllianceBernstein Holding on Dec. 19 as the struggling money manager’s chief executive. It was the culmination of an extraordinarily lucrative 2008 for Mr. Kraus. Earlier in Tthe year, he left Goldman Sachs (where he co-headed the investment management division and presumably had pocketed a sweet slice of the firm’s recently distributed bonuses) to join Merrill Lynch as head of strategy—just days before the brokerage firm agreed to be acquired by Bank of America. To make sure Mr. Kraus felt at home at his third employer of the year,

AllianceBernstein welcomed him with a $52 million “golden hello.” istockphoto

The gilded pay package, part of a hellos remains the $110 million (Sirius has never made a dime.) grant a big slug of stock to an incom- accept a lower pay package is not an five-year contract that also awards package awarded in 2004 by Sirius Typically,golden hellos are paid in ing chief if no further share or option appealing option for most boards.” him a guaranteed $6 million cash Satellite Radio Inc. to Howard stock,not cash,in order to better align grants were made in future years,Mr. AllianceBernstein notes that Mr. bonus this year, gave Mr. Kraus the the incoming executive’s interests Ferlauto says. Annual equity grants, Kraus’ $52 million award is in stock distinction of being New York’s with shareholders’ concerns. But however, are a routine part of CEO that vests over five years, assuming highest-paid CEO for 2008,accord- Typically, shareholders increasingly are balking compensation, as potent an ingredi- the CEO keeps his job. If the firm is ing to data provided by Salary.com. at the enormity of executive pay,sub- ent in the executive pay mix as cash sold,his 2.7 million-share grant vests Golden hellos are a particularly golden hellos jecting big awards to heavier scrutiny. bonuses and private jets. immediately (and would be worth lavish version of signing bonuses, and But defenders say the payments much more than its $52 million val- there’s been a gusher of them lately as are paid in Bending to CEOs’ wishes are simply a sign of the times. ue on the day it was granted, assum- a slew of struggling companies—par- “these deals are all about bending Boards buy into these deals because ing the firm is sold for a premium). ticularly financial institutions—turn stock, not cash to the aspirations of the CEOs to they see them as a necessary price of “For an executive of Peter’s caliber desperately to new leaders. Last year, get paid as much as they can,”grous- landing a qualified candidate. and an organization like Alliance- Citigroup Inc.awarded $38 million in es Richard Ferlauto,a longtime crit- “The money is less important Bernstein,compensation of approxi- stock to new CEO Vikram Pandit, ic of executive pay practices and di- than finding the best possible CEO,” mately $10 million a year for five and Marsh & McLennan Cos. wel- rector of corporate governance at says Robert Sedgwick, a Manhattan years is not out of the ordinary,” says comed Chief Executive Brian Duper- Stern in a desperate hope the shock the American Federation of State, attorney who negotiates executive General Counsel Laurence Cranch. reault with an $11 million bonjour. jock’s vast audience would help County and Municipal Employees. pay packages.“Getting the next-best Executive pay has never been a But the gold standard for golden make subscription radio profitable. It would be more acceptable to candidate because that person would hotter issue among shareholders or in

quired in 2005 for $1.5 billion. His best play, however, surely has Super Mario’s supersized paychecks been his own firm’s initial public of- fering.Since the IPO,Gamco’s stock Continued from Page 1 The Bronx native says comparing er votes were cast in approval when pay—by sifting through Wall Street’s has generated total returns of 180%, lion annually from renting office his pay to Mr. Fink’s is “bull,” be- his compensation package was last bargain bins and focusing on media compared with 65% for the Russell space to Rye, N.Y.-based Gamco. cause while other CEOs dedicate voted on two years ago. What Mr. and telecommunications stocks. The 2000 Financial Services Index and a Mr. Gabelli’s pay is all the more their time to strategic and adminis- Gabelli doesn’t say is the outcome graduate of Fordham University and 7% decline in the S&P 500. astounding given his firm’s size. trative matters,Mr.Gabelli still gets was never in doubt:He controls 95% Columbia Business School is also a But recently, Gamco’s results Gamco has about 200 employees his hands dirty researching stocks of his company’s voting stock. prominent activist investor, writing a have sagged, and Mr. Gabelli’s and manages $18.5 billion in assets. and wooing clients to the firm he “Magna Carta of Shareholder pay—which typically eats up more BlackRock, which manages $1.3 started in 1977. It’s all him Rights”in 1988 that’s still on his com- than a fifth of the company’s rev- trillion, or 70 times more than “If A-Rod was managing the “he’s as close to a one-man show as pany’s Web site.He made what could enue—has become a bigger issue. Gamco, paid CEO and co-founder Yankees, he’d get $2 million a year,” you’ll find,” says Greg Brown, an an- be the last big fortune from daily Over the past five years,revenue and Laurence Fink a comparative pit- Mr. Gabelli argues.“But he’s a play- alyst at fund tracker Morningstar. “I newspapers, buying a 40% stake in earnings growth have lagged those tance of $21 million last year. er, so he gets more.” certainly disagree with his paycheck.” the Pulitzer chain and doubling his for rivals such as W.P.Carey & Co., Mr. Gabelli makes no apologies. He adds that 98% of sharehold- Mr. Gabelli made his name—and money when the publisher was ac- a midsized money manager, accord- OUR ANNUAL FORTUNATE 100 LIST Who, what, when, where—and how much. Meet the 100 members o

12 | Crain’s New York Business | June 22, 2009 20090622-A--0012,0013-MAIN-CCI-CN_-- 6/18/2009 8:35 PM Page 2

PAY PALS Peter Kraus took the job at AllianceBernstein after the board offered a $52 million pay package Vikram Pandit received $38 million in stock as the new chief of Citigroup Brian Duperreault got an $11 million howdy from Marsh bloomberg news

Washington, D.C. AllianceBernstein was in an hour This month, the of need when it turned to Mr. Kraus Obama adminis- late last year. Its share price had fall- tration appointed en by 70% in 2008, as assets under the former over- management tumbled by more than seer of payouts to 40%, to $462 billion, and investors Sept.11 victims, fled from Bernstein’s poorly per- Kenneth Fein- forming mutual funds.The firm was berg, to super- sacking people across the board for vise corporate the first time—and Lewis Sanders, pay practices the CEO at the time, was shown the at Bank of door after 40 years of service. America, Cit- igroup, Gen- Slower decline eral Motors assets under management at Al- and other lianceBernstein have fallen further companies re- since Mr.Kraus joined,although the lying on government assistance. At a pace of decline has eased. The firm congressional hearing,House Finan- shed more of its staff in the first cial Services Committee Chairman quarter and earlier this month an- Barney Frank charged that executives nounced that President Gerald who demand lavish pay to align their Lieberman will retire next month. interests with those of their company If Mr. Kraus wants to collect on “are apparently implicitly pleading to his $52 million golden hello,his best some character flaw.” option may be to say good-bye and “Unlike the rest of us, they need sell the firm to a company like J.P. to be specially incentivized to treat Morgan Chase or State Street as as- their employer’s interests fairly,” he set managers consolidate. Analysts fumed. “Most of us in this society warn that margins at AllianceBern- are able to go home without that.” stein remain under pressure as in- But golden hellos are expected to vestors withdraw money,while fixed continue, despite the controversy. costs born from the firm’s expansion Troubled companies seem prepared overseas remain an albatross. to pay whatever it takes to hire the In a report, analysts at Goldman one executive they think can turn Sachs put it shortly, if not sweetly: their fortunes around. “Fundamentals remain weak.”

ing to proxy-advisory firm Glass ized returns of 3.6% over the past 10 Lewis & Co., which awards Gamco years, according to Morningstar. an F for its executive pay practices. The famously pugnacious and im- patient Mr. Gabelli probably would- Merely average performance n’t stand for such results when it with about 90% of client assets in- comes to his investments.Last fall,for vested in stocks, Gamco was hit es- instance, he warned several directors pecially hard last year, as profits fell of underperforming Cablevision that 69% and assets under management he might campaign to replace them. declined by a third. Just four of its 25 Yet Mr. Gabelli has structured U.S. mutual funds have performed Gamco so that his shareholders can well enough to earn Morningstar’s never pressure him like that. He not highest rating of five stars. And its only controls 72% of his company’s largest fund, the $1.8 billion Gabel- shares, but holds 99.5% of a special li Asset Fund, is merely an average class of stock with super-voting pow- performer compared with similar ers. No one can fiddle with his cre- vehicles. It generated total annual- ation.Or demand he take a pay cut.
s of New York’s most exclusive club Page 14

June 22, 2009 | Crain’s New York Business | 13 20090622-A--0014,0015,0016,0017-MAIN-CCI-CN_-- 6/18/2009 8:37 PM Page 1

REPORT EXECUTIVE PAY New York Area’s Fortunate 100 Chief executives ranked by 2008 compensation (Figures in thousands, unless otherwise noted)

%7<*4 76.9=2<@ !8<276 $<7,3 !<1.:  ,758.6;*<276 C,1*60. $*4*:@ 76=; 26,.6<2>.C84*6 *?*:-; *?*:-; ,758.6;*<276 :.>.6=. #*63 ! 758*6@C<2,3.: 26C  /:75C  26C  26C  26C  26C  26C  26C  26C5244276;

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10 bloomberg news  *5.; 2576 " (
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                      RUPERT MURDOCH  .66.<1  1.6*=4< ?7D;53@
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                     last year was News Corp.’s Mr. Murdoch,  716 # $<:*60/.4- (DG67@F;3>
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                       12 bloomberg news


-0*: :76/5*6C: /3D@7D
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                       NEIL COLE Fashion marketer  :.- *;;*6 +5:7D;@9 (>AG9:
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14 | Crain’s New York Business | June 22, 2009 20090622-A--0014,0015,0016,0017-MAIN-CCI-CN_-- 6/18/2009 8:37 PM Page 2

REPORT EXECUTIVE PAY

%7<*4 76.9=2<@ !8<276 $<7,3 !<1.:  ,758.6;*<276 C,1*60. $*4*:@ 76=; 26,.6<2>.C84*6 *?*:-; *?*:-; ,758.6;*<276 :.>.6=. #*63 ! 758*6@C<2,3.: 26C  /:75C  26C  26C  26C  26C  26C  26C  26C5244276;

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  @ ?                    41 bloomberg news

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                      DUNCAN NIEDERAUER  #7+.:< ( $.4*6-.: %3EF7D3D6
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                      ameters in the future.

Continued

Reactive

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June 22, 2009 | Crain’s New York Business | 15 20090622-A--0014,0015,0016,0017-MAIN-CCI-CN_-- 6/18/2009 8:37 PM Page 3

REPORT EXECUTIVE PAY

%7<*4 76.9=2<@ !8<276 $<7,3 !<1.:  ,758.6;*<276 C,1*60. $*4*:@ 76=; 26,.6<2>.C84*6 *?*:-; *?*:-; ,758.6;*<276 :.>.6=. #*63 ! 758*6@C<2,3.: 26C  /:75C  26C  26C  26C  26C  26C  26C  26C5244276;

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                   should be so generous.

Most Top Verdicts of last year? McKool Smith

16 | Crain’s New York Business | June 22, 2009 20090622-A--0014,0015,0016,0017-MAIN-CCI-CN_-- 6/18/2009 8:37 PM Page 4

REPORT EXECUTIVE PAY

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June 22, 2009 | Crain’s New York Business | 17 nb25p18-19cls.qxp 6/19/09 12:45 PM Page 18

COLLECTION INVESTMENT SERVICES OPPORTUNITY PUBLIC & LEGAL NOTICES UNABLE TO COLLECT LOOKING FOR ON A JUDGMENT? EXCITEMENT NOTICE OF FORMATION OF NO RECOVERY, NO FEE THIS SUMMER? NOTICE OF PUBLIC SALE OF COLLATERAL Gotham Artists LLC. Article of ATLANTIS ASSET Limited number of 5% and 10% On the 28th day of July, 2009, commencing at 10:30 a.m. Eastern time, at the law offices Organization filed with the Secretary partnership shares still available in of Polsinelli Shughart PC, 7 Penn Plaza (370 7th Ave.), 6th Floor, New York, New York, certain of State of NY (SSNY) on 4/7/09 RECOVERY LLC world-class thoroughbred horses. secured parties under the Uniform Commercial Code will sell the following property by public Office location NEW YORK County. (718) 819-2912 2-year-old colts purchased at auction to the highest qualified bidder: (1) 100% of the Class B membership interests in SSNY has been designated as agent March 2009 Ocala (Florida) Maspeth Properties, LLC, a New York limited liability company, which owns approximately 33 upon whom process against it may Breeders Sale. Horses will race in condominium units located at 84 and 100 Maspeth Avenue, Brooklyn, New York; (2) 100% of be served. The Post Office address to NY — at Belmont and Saratoga. WANTED the membership interests in McCaren Park Mews, LLC, a New York limited liability company, which the SSNY shall mail a copy of GET IN THE which owns approximately 121 condominium units located at 202-226 North 11th Street, any process against the LLC served WINNER’S CIRCLE! Brooklyn, New York; (3) 100% of the membership interests in Waterfront Realty II LLC, a New upon him/her is C/O the LLC 23-09 Seeking To Acquire 33rd Street. Astoria, NY 11105. York limited liability company, which owns a commercial and industrial property located at a distribution company in the Call Paul Braus at Date of Dissolution: N/A Purpose of 462 Kent Avenue, Brooklyn, New York that is leased to tenants; (4) 100% of the stock in Fast Furlong Stable LLC: to engage in any lawful act or Tri-State or New England area. Certified Lumber Corporation, a New York corporation, which owns a commercial and indus- (914) 925-3596 activity. Street address of Principal Please contact Alyssa Brancazio, trial property and operates a lumber business located at 484 Kent Avenue (a/k/a 1-9 Division Equity Transfers at Business location is: 1178 Broadway, Avenue), Brooklyn, New York; (5) 100% of the stock of Boro Park Home Center Corporation, 3rd Floor. New York, NY 10001. (516) 304-2871 VISIT OUR WEBSITE a New York corporation, which owns a commercial property and operates a hardware/lum- with all inquiries. CRAINSNEWYORK.COM ber/home center business located at 4601 New Utrecht Avenue, Brooklyn, New York. The secured parties reserve the right to reject all bids and terminate or adjourn the sale to Notice of Qualification of Thesys Technologies, LLC. Authority filed another time or place, or to effectuate a private sale instead of a public sale, without further with Secy. of State of NY (SSNY) on publication, and further reserve the right to bid for the collateral at the sale and to credit bid 1/27/09. Office location: NY County. by applying some or all of their secured debt to the purchase price. REAL ESTATE LLC formed in Delaware (DE) on Interested parties who would like additional information concerning the items to be 1/13/09. SSNY designated as agent sold at the sale and the terms and conditions of the sale, including the eligibility of LLC upon whom process against it COMMERCIAL SPACE requirements to be a qualified bidder, should consult the following website: may be served. SSNY shall mail http://www.polsinelli.com/PublicNotice/maspeth.aspx and, if additional information is desired, process to principal office address of contact Ingrid VanBiber at 816-360-4360. LLC: 54 Broad St., Ste. 200, Red Bank, NJ 07701. Arts. of Org. filed with DE Secy. of State, 401 Federal Notice of Formation of Viceroy Notice of Qualification of Crispin St., Ste. 4, Dover, DE 19901. Partners LLC. Arts. of Org. filed with Capital GP, LLC, App. for Auth. filed Purpose: any lawful activity. Secy. of State of NY (SSNY) on Sec’y of State (SSNY) 5/22/09. Office 5/28/09. Office location: NY Co. location: NY County. LLC org. in DE SSNY designated as agent of LLC 5/21/09. SSNY designated as agent Notice of Formation of Kezar upon whom process against it may of LLC upon whom process against it Productions, LLC. Arts. of Org. filed be served. SSNY shall mail process may be served. SSNY shall mail copy with NY Dept. of State on 5/8/09. to: Faust Oppenheim LLP, Attn: of process to Attn: Michael Cahill, Office location: NY County. Princ. Steven D. Oppenheim Esq., 488 375 Park Ave., Ste. 1305, NY, NY bus. addr.: 666 Greenwich St., Apt. Madison Ave., 17th Fl., NY, NY 10152. DE office addr.: c/o CSC, 505, NY, NY 10014. Sec. of State 10022. Duration: 12/31/2059. 2711 Centerville Rd., Wilmington, DE designated as agent of LLC upon Purpose: any lawful activities. 19808. Cert. of Form. on file: SSDE, whom process against it may be Townsend Bldg., Dover, DE 19901. served and shall mail process to: c/o Notice of Formation of MTMH HOLD- Purpose: any lawful activities. CT Corporation System, 111 8th ING LLC. Arts. of Org. filed with Secy. Ave., NY, NY 10011, regd. agt. upon of State of NY (SSNY) on 05/08/09. Notice of Formation of RYPE SCC LLC. whom process may be served. OFFICE SPACE Office location: NY County. Principal Arts. of Org. filed with Secy. of State of Purpose: any lawful activity. Advertise on office of LLC: c/o Martin Levine, 805 NY (SSNY) on 12/31/08. Office loca- NYC Middle Market Accounting Firm has Third Ave., Ste. 1100, NY, NY 10022. tion: NY County. SSNY designated as NOTICE OF FORMATION OF LIMITED office space to sub-let www.crainsnewyork.com SSNY designated as agent of LLC agent of LLC upon whom process LIABILITY COMPANY. NAME: NYC Middle Market Accounting Firm has upon whom process against it may be against it may be served. SSNY shall DEVIANT LLC. Articles of office space to sub-let. Sub-lease space in Top served. SSNY shall mail process to mail process to: c/o Conway Capital, “A” Building w/7 windowed offices, 11 Call John Gallagher Organization were filed with the the LLC at the address of its principal 115 Broadway, Ste. 302, NY, NY Secretary of State of New York Cubicles, use of Conference Rooms, Reception office. Purpose: Any lawful activity. Area, Kitchen, Full Office Support available. @ 212-210-0189 10006. Purpose: any lawful activity. (SSNY) on 01/13/09. Office location: For further information New York County. SSNY has been Please contact (212) 404-5403. Notice of Formation of REGULATORY Notice of Formation of Cape Sag designated as agent of the LLC REPORTING SERVICES, LLC. Arts. Management, LLC; Arts of Org., filed upon whom process against it may of Org. filed with Secy. of State of NY with NY Sec. of State (“SSNY”) be served. SSNY shall mail a copy (SSNY) on 05/11/09. Office location: 04/15/2009. Office in New York of process to the LLC, 7136 110 St., NY County. SSNY designated as County; SSNY designated agent for 3K, Forest Hills, New York 11375. PUBLIC & LEGAL NOTICES agent of LLC upon whom process service of process with copy mailed Purpose: For any lawful purpose. against it may be served. SSNY shall to Attn: Thomas J. Malmud, Esq., mail process to the LLC, c/o Michael Pryor Cashman LLP, 410 Park Notice of Qualification of Morgan H. Barnett, Esq., 375 Lexington Ave., Avenue, 10th Floor, New York, NY Notice of Formation of E. VILL. LABS Name: 10BIOSYSTEMS LLC Art. Of Creek Capital Management, LLC, Ste. 200, NY, NY 10168-0002. 10022, All lawful business purposes. App. for Auth. filed Sec’y of State LLC, a domestic LLC. Arts. of Org. Org. Filed Sec. Of State of NY Purpose: Any lawful activity. filed with the SSNY on 05/12/09. 04/29/09. Off. Loc.: New York Co. SSNY (SSNY) 12/26/08. Office location: NY Office location: NY County. SSNY has designated as agent upon whom County. LLC org. in NC 8/19/03. NOTICE OF APPLICATION OF AYURVEDIC LIGHT, LLC, a domestic been designated as agent upon process against it may be served. SSNY designated as agent of LLC AUTHORITY OF Air Berlin PLC & Limited Liability Company (LLC) filed whom process against the LLC may SSNY to mail copy of process to THE upon whom process against it may Co. Luftverkehrs KG (a/k/a Air Berlin with the Sec of State of NY on be served. SSNY shall mail a copy of LLC C/O Sebastian Jayaraj, 430 East be served. SSNY shall mail copy of PLC & Co. Luftverkehrs KG. L.P.) to 12/11/08. NY Office location: New process to: The LLC, 526 E 11th St. 63rd Steet, Apt 3E, NY, NY 10065. process to Attn: Neil T. Kuyper, 100 do business in New York as a foreign York County. SSNY is designated as #18, NY, NY 10009. Purpose: Any Purpose: Any lawful act or activity. Park Ave., 28th Fl., NY, NY 10017. limited partnership. Application for agent upon whom process against Lawful Purpose. the LLC may be served. SSNY shall NC office addr.: 301 W. Barbee Authority filed with the Secretary of Chapel Rd., Ste. 200, Chapel Hill, NC Elite Monk Media, LLC. Arts of Org mail a copy of any process against State of New York (SSNY) on 4/28/09. 27517. Cert. of Form. on file: SSNC, Notice of Formation of Shade of Braun filed with NY Sec of State (SSNY) on the LLC served upon him/her to N.Y. office location: New York County. PO Box 29622, Raleigh, NC 27626. LLC. Arts. of Org. filed with the Sec. of 03/20/09. Office: New York County. Moss & Kalish, PLLC, 122 E. 42nd LP formed in Berlin, Germany on Purpose: any lawful activities. State of New York (SSNY) on 02/27/09. SSNY designated as agent of LLC 7/18/91. SSNY has been designated St., Ste. 2100, NY, NY 10168. NY Office location: NY County. SSNY upon whom process may be served. as agent of LP upon whom process General purposes. has been designated as agent of LLC SSNY shall mail copy of process to: against it may be served. The P.O. Notice of Qualification of ETF SECU- upon whom process against it may 10 West 46th Street, New York, NY address to which the SSNY shall mail Notice of Qualification of VeraPoint RITIES USA LLC. Authority filed with be served. SSNY shall mail process 10036. Purpose: Any lawful activity. a copy of any process against the LP LLC. Authority filed with Secy. of Secy. of State of NY (SSNY) on to principal business location: 30 served upon him/her is C/O: Condon State of NY (SSNY) on 06/09/09. 06/03/09. Office location: NY County. Waterside Plaza 13H, NY, NY, 10010. NOTICE OF FORMATION of & Forsyth LLP; Times Square Tower; Office location: NY County. LLC LLC formed in Delaware (DE) on Purpose: Any lawful activity. Lovepump United Records LLC. Arts. 7 Times Square; New York, NY 10036. formed in Delaware (DE) on 11/24/08. Princ. office of LLC: Of Org. filed with Secy. Of State of The principal Business Address of 04/23/09. Princ. office of LLC: 825 Rockefeller Group Business Centers, Notice of formation of Redlines N.Y. (SSNY) on 11/18/08. Office loca- the LP is: Saatwinkler Damm 42-43; Third Ave., 32nd Fl., NY, NY 10022. 48 Wall St., 11th Fl., NY, NY 10005. Online, LLC Arts. of Org. filed with tion: New York County. SSNY desig- 13627 Berlin, Germany. The names SSNY designated as agent of LLC SSNY designated as agent of LLC the Sect’y of State of NY (SSNY) on nated as agent of LLC upon whom and business address of the general upon whom process against it may upon whom process against it may 5/20/2009. Office location, County of process against it may be served. partners are available from the SSNY. be served. SSNY shall mail process be served. SSNY shall mail process New York. The street address is: 1049 The Post Office address to which the The name and business address of to the LLC, Attn: Stephen M. Waters to c/o Corporation Service Co. (CSC), Fifth Avenue, #8B, New York, NY SSNY shall mail a copy of any the authorized official where a certifi- at the princ. office of the LLC. DE 80 State St., Albany, NY 12207-2543. 10028. SSNY has been designated as process against the LLC served upon cate of limited partnership is filed is: addr. of LLC: c/o Corporation Service DE addr. of LLC: c/o CSC, 2711 agent of the LLC upon whom process him/her is C/O the LLC PO BOX 1182. Amtsgerich Berlin-Charlottenburg: Co., 2711 Centerville Rd., Ste. 400, Centerville Rd., Ste. 400, Wilmington, against it may be served. SSNY shall New York, NY 10159. Street address Amtsgerichtsplatz 1:14057 Berlin, Wilmington, DE 19808. Arts. of Org. DE 19808. Arts. of Org. filed with DE mail process served to: The LLC, of Principal Business location is: 100 Germany. Purpose of LP is to engage filed with DE Secy. of State, 401 Secy. of State, Div. of Corps., P.O. 1049 Fifth Avenue, #8B, New York, Freeman St., #F107, Brooklyn, NY in any lawful act or activity. Federal St., Ste. 4, Dover, DE 19901. Box 898, Dover, DE 19903. Purpose: NY 10028. Purpose: any lawful act. 11222. Purpose: Any lawful activity. 1232255 w.o. Purpose: Any lawful activity. Any lawful activity.

18 | Crain’s New York Business | June 22, 2009 nb25p18-19cls.qxp 6/19/09 3:37 PM Page 19

PUBLIC & LEGAL NOTICES

Notice of Formation of DG RIVER- NOTICE OF FORMATION of Limited Notice of Qualification of AUSAF I, Notice of Qualification of JBR PART- Notice of Qualification of Spring Hill SIDE REALTY, LLC. Arts. of Org. filed Liability Company / Partnership (LLC) LLC. Authority filed with Secy. of State NERS, LLC. Authority filed with Secy. Capital Markets, L.L.C. Authority filed with Secy. of State of NY (SSNY) on Laurel 17C, LLC L.L.C. Articles of of NY (SSNY) on 04/30/09. Office loca- of State of NY (SSNY) on 05/14/09. with NY Dept. of State on 5/19/09. 05/15/09. Office location: NY County. Organization filed with the Secretary tion: NY County. LLC formed in Office location: NY County. LLC Office location: NY County. LLC Princ. office of LLC: 240 Riverside of State of New York (SSNY) on Delaware (DE) on 04/29/09. Principal formed in Delaware (DE) on 12/24/08. formed in DE on 4/22/09. NY Sec. of Blvd., Apt. 17B, NY, NY 10069. SSNY 1/14/2009. N.Y. Office location: New office of LLC: One Penn Plaza, Ste. Principal office of LLC: 825 Third State designated as agent of LLC designated as agent of LLC upon York County. SSNY has been desig- 4625, NY, NY 10119. SSNY designat- Ave., 10th Fl., NY, NY 10022. SSNY upon whom process against it may whom process against it may be nated as an agent upon whom ed as agent of LLC upon whom designated as agent of LLC upon be served and shall mail process to: served. SSNY shall mail process to process against it may be served. process against it may be served. whom process against it may be Patrick Quinn, 30 Rockefeller Plz., Adam B. Kaufman & Associates, The Post Office address to which the SSNY shall mail process to the LLC at served. SSNY shall mail process to 41st Fl., NY, NY 10112, principal PLLC, 585 Stewart Ave., Ste. 302, SSNY shall mail a copy of any the address of its principal office. DE c/o Corporation Service Co. (CSC), business address. DE addr. of LLC: Garden City, NY 11530. Purpose: process against the LLC served upon address of LLC: c/o Corporation 80 State St., Albany, NY 12207-2543. c/o The Corporation Trust Co., 1209 Any lawful activity. him/her is C/O the LLC 16055 N. Dial Service Co., 2711 Centerville Rd., Ste. DE address of LLC: c/o CSC, 2711 Orange St., Wilmington, DE 19801. Blvd, Suite 4 Scottsdale, Arizona 400, Wilmington, DE 19808. Arts. of Centerville Rd., Ste. 400, Wilmington, Arts. of Org. filed with DE Sec. of NOTICE OF FORMATION of Altius 85260. The Principal Business Org. filed with Secy. of State of DE, DE 19808. Arts. of Org. filed with DE State, 401 Federal St., Dover, DE Enterprises LLC. Arts. Of Org. filed Address of the LLC is: 16055 N. Dial Jeffrey W. Bullock, John G. Townsend Secy. of State, John G. Townsend 19901. Purpose: any lawful activity. with Secy. Of State of N.Y. (SSNY) on Blvd, Suite 4 Scottsdale, Arizona Bldg., 401 Federal St., Dover, DE Bldg., 401 Federal St., Ste. 4, Dover, 05/27/09. Office location: New York 85260. Dissolution Date: Perpetual (if 19901. Purpose: Any lawful activity. DE 19901. Purpose: Any lawful activity. NOTICE OF FORMATION OF LIMIT- County. SSNY designated as agent of any) Purpose/character of LLC: To ED LIABILITY COMPANY. NAME: LLC upon whom process against it engage in any lawful act or activity. NOTICE OF FORMATION of Notice of Qualification of Kondaur TACET CREATIONS LLC. Articles of may be served. SSNY shall mail 1236875 w.o. PresenceCare LLC. Arts. Of Org. filed Ventures VIII B1, L.L.C. Authority filed Organization were filed with the process to principal business location: with Secy. Of State of N.Y. (SSNY) on with NY Dept. of State on 5/12/09. Secretary of State of New York (SSNY) 111 Worth St., Suite 19K, NY, NY Notice of Formation of TRIBECA 02/18/09. Office location: New York Office location: NY County. LLC formed on 05/14/09. Office location: New York 10013. Purpose: Any lawful activity. POINTE MEMBER (HHE) L.L.C. Arts. County. SSNY designated as agent of in DE on 4/30/09. NY Sec. of State County. SSNY has been designated of Org. filed with Secy. of State of NY LLC upon whom process against it designated as agent of LLC upon as agent of the LLC upon whom (SSNY) on 4/24/09. Office location: may be served. SSNY shall mail whom process against it may be process against it may be served. Notice of Qualification of Financial NY County. Principal business loca- process to: 7014 13th Ave., Suite 202, served and shall mail process to: c/o SSNY shall mail a copy of process to Federal Funding II, LLC. Authority tion: 290 Park Avenue South, 14th Brooklyn, NY 11228. Principal busi- CT Corporation System, 111 8th Ave., the LLC, 184 2nd Avenue, Suite 3A, filed with Secy. of State of NY (SSNY) Fl., NY, NY 10010. SSNY designated ness location: 41 5th Ave., 14C, NY, NY NY, NY 10011, regd. agt. upon whom New York, New York 10003. Purpose: on 5/18/09. Office location: NY as agent of LLC upon whom process 10003. Purpose: Any lawful activity. process may be served. DE addr. of For any lawful purpose. County. LLC formed in DE on 2/5/09. against it may be served. SSNY shall LLC: c/o The Corporation Trust Co., SSNY designated as agent of LLC mail process to: 290 Park Avenue 1209 Orange St., Wilmington, DE upon whom process against it may be NOTICE OF FORMATION OF LIMITED Notice of Formation of NEAL STREET South, 14th Fl, NY, NY 10010, Attn: 19801. Cert. of Form. filed with DE Sec. served. SSNY shall mail process to: LIABILITY COMPANY. NAME: EL & EL NEW YORK, LLC. Arts. of Org. filed CEO. Purpose: any lawful activity. REALTY LLC. Articles of Organization of State, Townsend Bldg., Dover, DE with Secy. of State of NY (SSNY) on Capitol Services, Inc., 1218 Central 19901. Purpose: any lawful activity. Ave., Ste. 100, Albany, NY 12205. DE were filed with the Secretary of State 03/18/09. Office location: NY County. address of LLC: 615 South DuPont NOTICE OF FORMATION of Neighbor- of New York (SSNY) on 02/09/09. Princ. office of LLC: c/o Starr & Hwy., Dover, DE 19901. Arts. of Org. hood Eats, LLC. Arts. Of Org. filed with Office location: New York County. SSNY Notice of formation of Limited Liability Company, LLC, Attn: Sanford Miller, filed with DE Secy. of State, 401 Secy. Of State of N.Y. (SSNY) on has been designated as agent of the Company. Name: Selfhelp (KI-KII) 850 Third Ave., 15th Fl., NY, NY 10022. Federal St., Dover, DE 19901. 5/06/2009. Office location: NY County. LLC upon whom process against it may Associates LLC (“LLC”). Articles of SSNY designated as agent of LLC Purpose: any lawful act or activity. SSNY designated as agent of LLC upon be served. SSNY shall mail a copy of Organization filed with NY Secretary upon whom process against it may whom process against it may be served. process to the LLC, 40-39 69th Street, of State (“SSNY”) on May 13, 2009, be served. SSNY shall mail process SSNY shall mail process to principal Woodside, New York 11377-3835. NY Office location is New York to the LLC at the addr. of its princ. NOTICE OF FORMATION OF business location: 35 East 30th St., # 9C, Purpose: For any lawful purpose. County. The SSNY has been desig- office. Purpose: Any lawful activity. W12LLC. Article of Organization filed NY, NY 10016. Dissolution date: May nated as agent of the LLC upon with the Secretary of State of NY 1, 2059. Purpose: Any lawful activity. whom process against it may be REEL YOU STUDIOS LLC, Articles of (SSNY) on May 22, 2009. Office loca- 2nd STORY SOUND RECORDS LLC, served. The SSNY shall mail a copy Org.filed N.Y. Sec.of State(SSNY) 7th tion NEW YORK County. SSNY has a domestic Limited Liability Company of any process to LLC at 520 Eighth day of April 2009. Office in New York been designated as agent upon Notice of Qualification of MANCUSO (LLC) filed with the Sec of State of NY Avenue, New York, NY 10018. Co. at 825 3rd Avenue, 2nd Floor, New whom process against it may be EQUITY PARTNERS, LLC. Authority on 4/27/09. NY Office location: New Purpose/character of LLC is to York New York 10022. SSNY desig. served. The Post Office address to filed with Secy. of State of NY York County. SSNY is designated as engage in any lawful act or activity. agt. upon whom process may be which the SSNY shall mail a copy of (SSNY) on 05/18/09. Office location: agent upon whom process against the any process against the LLC served NY County. LLC formed in Delaware LLC may be served. SSNY shall mail served. SSNY shall mail copy of upon him/her is Martin Klein c/o (DE) on 05/14/09. Princ. office of a copy of any process against the Notice of formation of Limited Liability process to 1 Maiden Lane, 5th Floor, Coastal Development LLC. 1 East LLC: 900 Third Ave., 18th Fl., NY, NY LLC served upon him/her to Company. Name: Selfhelp (KI-KII) New York, New York 10038. Reg. Agt. 57th Street, New York, NY 10022. 10022. SSNY designated as agent of Alexander Grasso, 2 Lincoln Ave., Manager LLC (“LLC”). Articles of upon whom process may be served: Purpose of LLC: to engage in any LLC upon whom process against it Hasting, NY 10706 General purposes Organization filed with NY Secretary Speigel & Utrera, P.A., P.C. 1 Maiden lawful act or activity. Street address of may be served. SSNY shall mail of State (“SSNY”) on May 13, 2009, Lane, NYC 10038. 1 800 576-1100 Purpose: Any lawful purpose. Principal Business location is: 1 East process to c/o Corporation Service Notice is hereby given that a licence NY Office location is New York 57th Street, New York, NY 10022. Co. (CSC), 80 State St., Albany, NY Number PENDING for on premises County. The SSNY has been desig- 12207-2543. DE addr. of LLC: c/o Liquor has been applied for by the nated as agent of the LLC upon SIMCO CAPITAL HOLDINGS LLC, a CSC, 2711 Centerville Rd., Ste. 400, undersigned to sell Liquor at retail in whom process against it may be domestic Limited Liability Company Notice of Qualification of LEX SPECIAL served. The SSNY shall mail a copy ASSETS LLC. Authority filed with Secy. Wilmington, DE 19808. Arts. of Org. a restaurant under the Alcoholic (LLC) filed with the Sec of State of filed with Secy. of State, Div. of Beverage Control law at 1770 of any process to LLC at 520 Eighth NY on 4/15/09. NY Office location: of State of NY (SSNY) on 05/20/09. Avenue, New York, NY 10018. Office location: NY County. LLC Corps., PO Box 898, Dover, DE Second Avenue, New York, Ny 10128 New York County. SSNY is designat- 19903. Purpose: Any lawful activity. for on premises consumption. JON 2, Purpose/character of LLC is to ed as agent upon whom process formed in Delaware (DE) on 03/23/09. engage in any lawful act or activity. Princ. office of LLC: 1271 Ave. of the LLC d/b/a BLONDIES SPORTS. against the LLC may be served. Americas, NY, NY 10020. SSNY des- Notice of Qualification of Metropolitan SSNY shall mail a copy of any ignated as agent of LLC upon whom Real Estate Partners VII, L.P., App. Name of LLC: ORDA LLC. Articles of Please take notice that PR/PR LLC process against the LLC served upon process against it may be served. for Auth. filed Sec’y of State (SSNY) Org. filed Dept. of State of NY on was formed on Feb.19, 2009 and arti- him/her to The LLC, Attn: Mr. Todd SSNY shall mail process to c/o 3/2/09. Office location: NY County. LP 1/16/09. Office location in NY: New cles of organization were filed with the Hollander, 147 Waverly Pl., NY, NY Corporation Service Co., 80 State St., org. in DE 2/26/09. SSNY designated York County. Secy. of State designated department of state on Feb. 25, 2009. 10014 General purposes Albany, NY 12207-2543. DE addr. of as agent of LP upon whom process as agent of LLC upon whom process The principal business location is 185 LLC: 2711 Centerville Rd., Ste. 400, against it may be served. SSNY shall against it may be served. Sec. of State West Houston Street, #2H, New York Wilmington, DE 19808. Arts. of Org. mail copy of process to Attn: Felipe shall mail a copy of process to: Rayner City, in New York county, New York filed with State of DE, Div. of Corps., Dorregaray, 135 E. 57th St., 16th Fl., Rowe LLP, 75 Rockefeller Plaza, 20th 10014. The Secretary of State is des- John G. Townsend Bldg., 401 Federal NY, NY 10022. DE office addr.: c/o Floor, New York, NY 10019. Purpose: ignated as agent of the limited liability St., Ste. 4, Dover, DE 19901. CSC, 2711 Centerville Rd., Wilmington, any lawful activity. company upon whom process against WANT TO GET YOUR Purpose: Any lawful activity. DE 19808. Cert. of LP on file: SSDE, it may be served. The post office address within the state to which the Townsend Bldg., Dover, DE 19901. Notice of Qualification of Blackstone COMPANY IN FRONT OF secretary of state shall mail a copy of NOTICE OF QUALIFICATION of Name/addr. of each gen. ptr. avail. at Real Estate CMBS Fund L.P.Authority any process against it served upon Dental Network of America, LLC. SSNY. Purpose: any lawful activities. filed with NY Dept. of State on 5/1/09. him or her is 185 West Houston 250,000 Application for Authority filed with the Office location: NY County. LP formed Street, #2H, NY., NY 10014.There is Secretary of State of New York (SSNY) Notice of Qualification of CRUTHIN in DE on 4/14/09. NY Sec. of State no other registered agent for the LLC. INFLUENTIAL BUSINESS on 03/24/09. NY Office location: New CAPITAL LLC. Authority filed with designated as agent of LP upon whom The purpose of the LLC shall be for York County. LLC formed in Delaware Secy. of State of NY (SSNY) on process against it may be served and the off-field marketing and represen- on 01/01/09. SSNY has been desig- 06/02/09. Office location: NY County. shall mail process to the principal PROFESSIONALS? tation of athletes and celebrities and nated as agent of LLC upon whom LLC formed in Delaware (DE) on business addr. of the LP: c/o The other activities associated therewith. process against it may be served. 02/13/09. SSNY designated as agent Blackstone Group L.P., 345 Park Ave., The P.O. address to which the SSNY of LLC upon whom process against it NY, NY 10154. Regd. agt. upon whom Contact John Gallagher shall mail a copy of any process may be served. SSNY shall mail process may be served: CT Corporation Notice of Formation of Caerus Global against the LLC served upon him is: process to the LLC, 152 Reade St., System, 111 8th Ave., NY, NY 10011. GP LLC, Art. of Org. filed Sec’y of C/O the LLC 875 Avenue of the NY, NY 10013. DE addr. of LLC: 2711 DE addr. of LP: c/o The Corporation State (SSNY) 4/14/09. Office loca- at 212-210-0189 Americas, Suite 501, New York, NY Centerville Rd., Ste. 400, Wilmington, Trust Co., 1209 Orange St., Wilmington, tion: NY County. SSNY designated as 10001.The Principal Business DE 19808. Arts. of Org. filed with DE 19801. Name/addr. of genl. ptr. agent of LLC upon whom process for classified advertising Address of the LLC is: Two TransAm State of DE, Secy. of State, Div. of available from NY Sec. of State. Cert. against it may be served. SSNY shall Plaza Dr. Suite 500, Oakbrook Corps., John G. Townsend Bldg., 401 of LP filed with DE Sec. of State, 401 mail copy of process to 750 Lexington opportunities. Terrace, IL 60181. Purpose of LLC: To Federal St., Ste. 4, Dover, DE 19901. Federal St., Dover, DE 19901. Ave., 16th Fl., NY, NY 10022. engage in any lawful act or activity. Purpose: Any lawful activity. Purpose: any lawful activity. Purpose: any lawful activities.

June 22, 2009 | Crain’s New York Business | 19 20090622-A--0020-MAIN-CCI-CN_-- 6/19/2009 8:08 PM Page 1

high-rise. Lehman holds a big chunk of the underlying mortgage Salvaging Lehman THE LEHMAN LEDGER there,and buyers had been unable to find financing. Continued from Page 1 firm Eastern Consolidated. “People “I think the market could view left the house without. are still terrified to make decisions. this as an encouraging sign,” says In borrowed jacket (but without Banks aren’t lending, and borrowers Dan McNulty, co-CEO of real es- tie), Mr. Fitts and colleague Jerry can’t refinance.” tate services company DTZ Rock- Pietroforte met Lehman’s somber Amid the chaos, Lehman itself wood, referring to Lehman’s will- top brass. They then rode down 18 needed two ingredients more than ingness to effectively put more stories to meet the 115 exhausted anything else:“They needed leader- money into the deal. people managing a global grab bag ship, and they needed calm,” says BASICS LARGEST UNSECURED TRAVEL AIDS of property investments, from a John Suckow,the Alvarez & Marsal CREDITORS Some 2,000 deals to unwind share in a 34-story hotel in Times managing director who heads the Employees 26,200 8-PLANE AIR FORCE, it’s also another case of the new INCLUDING Square to a $370 million construc- firm’s Eastern region. Liabilities Citibank and Bank of bosses’ campaign to make sure that $613 BILLION New York Mellon 4 Boeing 737s tion loan for a vast resort on the is- Providing that was the job of (as trustees for various creditors get as much of their cash land of Maui. Messrs. Fitts and Pietroforte, the re- Assets $639 BILLION notes) $138 BILLION 1 Boeing 767 back as possible. Experts reckon that The two men were there that structuring veterans.First,they had to even in a good market, it would take 1 Sikorsky helicopter morning to take control of assets reassure the 115 Lehman staffers that five to six years to liquidate Lehman’s valued at $42.9 billion—equal to there was much that was good and sal- real estate assets, but Alvarez has two-thirds the value of Enron’s as- vageable in the portfolio. Then, they pledged to exit Lehman by the second sets when it went bust—and to in- had to pick the 80 Lehmanites they’d anniversary of its filing. In this grim troduce their new staff to the dark keep, including the three who’d join era, Alvarez has sold few of the arts of life in Chapter 11. the Alvarez duo in a new five-person roughly 2,000 investments Lehman “For them, it was all something executive committee. has in the U.S. and overseas. they’d never been through—not a “In bankruptcies,”says Mr.Fitts, Creditors, of course, want their beginning, but an end,” says Mr. “we tend to rely on the people one cash back. Most likely, what they get Fitts. “For people like us, it’s what level down in the company [to help will be Lehman’s exit from bankrupt- we do.” run it]. That’s why when you walk PROPERTY PORTFOLIO BANKRUPTCY-RELATED ARTISTIC TOUCHES cy either as a self-liquidating trust or People like Messrs. Fitts and into a company, the first thing you Total value FEES BILLED Assorted paintings, as an ongoing business in which the Pietroforte are the point men for a think is, ‘Wow, I sure hope the lieu- $42.9 BILLION Weil Gotshal & sculptures and other worst assets have been shed, and the team from Alvarez & Marsal. They tenants are good.’ ” best carefully nurtured. Holdings include Manges (attorney) artwork are part of a small army of tech- Out went division head Mark $55.1 MILLION $30 MILLION What remains of Lehman is now nocrats, a new ruling class from a Walsh,who had led the financing of construction loan for run from the north-facing half of handful of restructuring firms being luxury Hawaiian resort Alvarez & Marsal the 46th floor at the Time & Life deals such as the $22 billion pur- $370 MILLION (restructuring firm) dispatched by bankruptcy courts to chase of residential landlord Arch- $31 MILLION Building on Sixth Avenue. An eerie salvage what they can at Lehman, stone-Smith Trust in 2007, just be- quiet gives the office an almost twi- General Motors and others for the fore the market collapsed. All information is as of Sept. 15, 2008, except for fees billed, which are as of Jan. 31, 2009. light zone quality. Few people wear

benefit of unsecured creditors. bloomberg news, istockphoto ties,much less suit jackets,and most At Lehman, longtime Chief Ex- A whole new order speak in hushed tones. Barclays’ ecutive Richard Fuld and his erst- in came a new team short on deal- Bowling Green. real estate division had paid out $78 blue-eagle emblem glows on many while masters of the universe were makers, but long on property man- “In the first phase, we were just million in funds it had promised and computer screens—a reminder of replaced by Bryan Marsal (as chief agers and actuaries who knew what looking for the melting ice cubes,” taken in $191 million from clients. the mother ship’s afterlife as an arm restructuring officer) and his team, Lehman had pledged to fund and says Mr. Fitts. For example, he Scores of deals and loans have of the British bank that got not only which peaked at 150. Within a day what it owned outright—and who points to dozens of projects that been restructured so far this year,in- Lehman’s headquarters and thou- of the change, Barclays agreed to could help the new team stabilize Lehman had agreed to finance that cluding $485 million in debt con- sands of its staff, but also its infor- snap up Lehman’s U.S. investment those assets. In, as well, came a would evaporate if checks could not nected with the Archstone deal.In a mation system. bank at a fire-sale price of $1.75 bil- whole new order. be cut—a rescue operation that took surprise development last week, an- “I take satisfaction in what we’ve lion.No such luck for what had been Lesson No. 1: Alvarez was there nearly a month to restart. He and other arm of Lehman was sold to a accomplished: pulling together in one of the property market’s biggest not to advise, but to run the show.All Mr. Pietroforte worked from 8 a.m. group that includes none other than the chaos to stabilize the portfolio stars—Lehman’s real estate arm— requests for money had to go through to 10 p.m. most days. former division head Mr. Walsh, and get ready for what comes next,” whose demise continues to weigh Messrs. Fitts and Pietroforte, who in By early January, the new over- who will help the group manage says Mr. Pietroforte.“But this is not heavily on the sector, a burden that some cases even insisted on signing seers “knew where most of the bones several private equity funds he had a normal situation. It is just as nor- Messrs. Fitts and Pietroforte are off on purchases of pads and pencils. were buried,” Mr. Pietroforte says. set up at Lehman. mal as it can be.”
struggling to ease. Larger requests would go before the The weekly creditors’ committee Earlier this month, Messrs. Fitts “The psychological harm of 2:30 p.m.Monday meetings with un- meetings had shrunk from two- and Pietroforte won court approval ON THE WEB Profiles of Jeff Fitts and Lehman’s blowup was enormous,” secured creditors. The largest re- and-a-half-hour marathons to a for a $150 million credit facility to Jerry Pietroforte of Alvarez & Marsal says Eric Anton, executive manag- quests would go to Judge James Peck businesslike 60 minutes.On Jan.14, @ finance purchases of condos at Mi- www.crainsnewyork.com/lehman ing director of real estate services at Bankruptcy Court, downtown at Alvarez reported to Judge Peck the ami Beach’s Canyon Ranch Living

was enamored of his striking design, ed the project would generate $500 Atlantic Yards won’t be derailed the initial renderings by his succes- million in net positive gains. sor,architectural firm Ellerbe Beck- Many residents cite other rea- et, have been likened to an airport sons for their unhappiness with At- Continued from Page 1 “It’s a deal being done behind hangar. lantic Yards. It initially called for a Yaro,president of the Regional Plan closed doors, and at the rate it is The new design will be easier to 511-foot office tower to be built by Association.“The horse is out of the changing, it doesn’t seem to deliver finance because it will be cheaper to 2010—bringing with it a substantial barn on this one.” on the promises.” build. Forest City, which has yet to number of jobs. Forest City has now The ESDC issued a statement Mr. Perkins has written Ms. begin any construction on the site, said that it won’t proceed with the that it has been working with the Williams demanding to know why must start building the arena by tower without an anchor tenant. city,the MTA and Forest City on an the MTA is renegotiating with For- year-end to qualify for attractive amended proposal and will recom- est City and whether the agency has tax-free bonds. Housing crunch mend that the board approve it.Last considered that the “alleged public Foes point out that the Indepen- affordable housing,which many month, acting MTA chief Helena benefits have since substantially di- dent Budget Office, which moni- in the community saw as a key Williams pledged that the agency minished or vanished altogether.” tors the city’s finances, said last sweetener,is also on hold.Three res- would “not agree to any new terms Seven elected officials have asked An array of month that it no longer believed the idential buildings were supposed to that would compromise its trans- that this week’s vote be postponed arena would generate the $25 mil- be up by 2010 offering as many as portation needs.” to allow for public hearings. lawsuits and the lion net positive benefit over 30 633 units of low-, moderate- and The reality is that a host of law- years that the group had forecast. middle-income housing. Construc- suits and the recession have forced Shooting star recession forced The benefit was wiped out by the tion on one of the buildings is slated so many delays and design changes when plans for Atlantic Yards city’s doubling its contribution to to start later this year, and a second that, at this point, Atlantic Yards were announced in 2003, Forest so many delays the project to $205 million—a fig- at an undetermined time after. The disappoints everybody, perhaps City boasted that stararchitect ure officials dispute. total number of units in each is not even Forest City—which declined Frank Gehry was the master plan- A spokesman for the New York available. to comment for this story. ner and designer of the develop- City Economic Development “This was a classic bait-and- “Is this still the best deal for the ment’s showpiece: an arena for the Corp.says the city is recalculating its switch,”says Councilwoman Letitia people?”asks state Sen.Bill Perkins, Nets basketball team, which the billion, and Mr. Gehry was official- analysis but still believes Atlantic James,a Brooklyn Democrat.“They D-Manhattan, who chairs the company owns. But by last year, the ly ousted from the project earlier Yards will have a positive fiscal im- [Forest City] made promises so they committee overseeing the MTA. cost of his arena had hit nearly $1 this month. Though not everyone pact. In 2005, the city had estimat- could get their arena.”

20 | Crain’s New York Business | June 22, 2009 20090622-A--0021-MAIN-CCI-CN_-- 6/19/2009 1:55 PM Page 1

of financial31% execs will skip vacation or take fewer days off this summer BUSINESS LIVES Source: Robert Half Management Resources HOT JOBS EXECUTIVE INBOX

DIRECTOR Anne Fisher OF DEVELOPMENT ORGANIZATION Human Rights First Teamwork JOB DESCRIPTION Responsible is essential for managing staff and budget and creating strategy CHUGGING: for career MOST IMPORTANT TASK Larry Cerullo’s latest project off the Street Expanding HFR’s funding base incorporates CREDENTIALS NEEDED state-of-the-art More than 77,000 finance Minimum of 10 years’ equipment. jobs disappeared in the first experience in a similar role; quarter of 2009, the Bureau of entrepreneurial spirit Labor Statistics reports, and SALARY Starts at $150,000 most of the people who lost them are looking for work in other RECRUITER Joyce Munn, Global industries. Nonprofit Network Changing fields can be a DOWNSIDE Lofty goals for tough adjustment. challenging economic times “Wall Streeters are used to UPSIDE Working for an being individual heroes. It can established nonprofit make you arrogant. It certainly Founded in 1978, Human did me,” says Tom Adams, 37. Rights First works to protect the “In the rest of the world, it’s rights of refugees seeking about teamwork and creating an asylum. HFR led successful environment where other people campaigns to end torture in can do great things.” Guantánamo. For the fiscal year Mr. Adams should know. ended May 31, 2007, it received In 2003, he went from a career $8.9 million in funding. as a commodities trader to —AMANDA FUNG chief executive of language- learning software maker Rosetta Stone. EXECUTIVE MOVES He had used Rosetta Stone’s wares to learn Chinese (he’s also New York Philharmonic: Gary W. Parr, 52, fluent in Swedish, Spanish and was appointed chairman, effective Sept. French), but “my main 24. He will replace the current chairman, qualification was my passion for Paul B. Guenther. Mr. Parr was elected to the board of directors on March 19. buck ennis the company,” he says. He is currently a deputy chairman at Passion paid off: Rosetta Lazard, a financial advisory and asset GOTHAM GIGS Stone has grown to $209 million management firm. in revenues from $10 million, Beliefnet: Ju-Don and to 1,250 employees from Roberts, 38, joined as 100. In April, the company went executive editor and senior vice president of public at $18 and within hours the multifaith Web shot up to $25.12. The shares site, a subsidiary of Rooted in Queens have been trading at around $25 Fox Digital Media and ever since. Fox Entertainment larry cerullo leaves nothing to chance. ¶ When he built the Transforming oneself from Group. She comes He wasn’t city’s biggest beer garden—brand-new Studio Square, in Long lone hero to team player, Mr. from WashingtonPost.com, where she Adams says, takes “both served as managing editor. Island City, Queens—he installed a state-of-the-art storage room a ‘desk confidence and humility.” Stephens Inc.: Thomas E. Goss Jr., 51, was and enough compressors and generators to keep the suds cold and appointed managing director at the guy’ and A few years ago, frustrated investment banking and brokerage firm. flowing, even in a blackout. ¶ To decorate the 35,000-square-foot by delays in the development of He had served as head of capital intro- dropped garden, Mr. Cerullo brought in plants from South America, paved a new product, he recalls, “I ductions in the prime services division at parked myself in that Lehman Brothers/Barclays Capital. the courtyard with Belgian block and had picnic tables custom-made. Akin Gump Strauss out of law department for a day. It was The venue, which opened May 14,drew 32,000 people the first the hardest day I’ve ever Hauer & Feld: Andrew week. ¶ “I’m a perfectionist, a nervous wreck and a workaholic,” says Hulsh, 48, joined as school worked. Now, I do someone partner in the law firm’s Mr. Cerullo, 37, who sleeps only four hours a night and dropped out else’s job for a day every year. corporate practice. He of law school when he realized he wasn’t a “desk guy.” ¶ The second- I’ve been a janitor, worked in was formerly a partner generation Sicilian-American owns and runs 30 businesses with his shipping, done recruiting. … It at Dewey & LeBoeuf. keeps me humble about my Asset Management partner, Steve Tallides, a childhood friend.The duo undertook their Finance: Brian D. Finn, own role.” 48, was appointed chief executive. He first project in 1999, buying a 30,000-square-foot space in Astoria previously served as chairman of that they turned into upscale Greek restaurant Cavo. ¶ Despite IF YOU’VE GONE from a Wall Street alternative investments at Credit Suisse. many offers in Las Vegas and Miami, Mr. Cerullo—whose wife was job to some other kind, what are the —maia blume biggest differences you’ve noticed his neighborhood barber—prefers to stay close to his Queens roots. (besides the pay cut)? Tell us at For more Executive Moves, go to “This is the area I know,” he says. —miriam kreinin souccar www.crainsnewyork.com/execinbox. www.crainsnewyork.com/execmoves

June 22, 2009 | Crain’s New York Business | 21 20090622-A--0022-MAIN-CCI-CN_-- 6/18/2009 6:25 PM Page 1

RÉSUMÉ REVIEW At the head of the Line Is your job search all it could be? We ask the experts. Friends of High Line Were you emotional on the High Line’s falls into the West Side rail yards. opening day? We are confident we will be able NAME RAJAS KARNIK, LEED AP co-founder engineers After the ribbon-cutting,to see peo- to preserve it, but we don’t have OBJECTIVE ple come into the park for the first any concrete promise that it will be A position as an intermediate architect and park’s big opening time was like a birth. protected. building information model coordinator

What’s the timeline for opening the Your big benefit was last week. Did you EXPERIENCE BY THERESA AGOVINO remainder of the park? have a hangover? HOK, New York, 2008-2009. Senior architectural technician: King Abdullah University of Science and Technology, Saudi Arabia; New Doha We are looking to open [West 20th I don’t drink when I do benefits. I’m riends of the High Line Street to West 30th Street] in speaking with a number of our top International Airport, Qatar; Moynihan Station, New York co-founder Joshua Da- the second half of 2010. … donors,so one must keep one’s wits Ismael Leyva Architects, New York, 2005-2008. Job captain: 309 Fifth vid realized his 10-year- Obviously, the recession is about them. Ave., Manhattan; intermediate architect: 167 Johnson St., Brooklyn old dream when the first a huge challenge. We have GF55 Architects, New York, 2004-2005. Intermediate architect section of the West Side to raise 70% of our operat- Any creative fundraising? park—from Gansevoort to West ing budget,but we are very Edward Norton [actor and Friends EDUCATION F Texas A&M University, College Station, 2002-04, M. Arch. 20th streets—opened on June 8. To optimistic. Now of the High Line board mem- top off that achievement, Barry that people can ber] offered himself to Academy of Architecture, Mumbai, 1996-2001, G.D. Arch. Diller and his wife, Diane von see how spe- be auctioned off for a Résumé appears in condensed form. Furstenberg, cial the park walk on the High made a $10 is, I think Line. We sold him EXPERT ADVICE million they will twice for $28,000 Design firms are still hiring, but there’s incredible competition, so design matching want to a pop. your résumé to grab the reviewer’s attention. If you’re unemployed, work MOVERS & grant that was be a part toward your architectural registration and LEED certification. Construction SHAKERS immediately of it. … So what do you do experience makes for a well-rounded designer, so volunteer with Habitat for met by hedge The fu- when you’re not Humanity or through the AIA Center for Communities by Design. saving landmarks? Joshua fund mogul ture of —terry thiele, owner,Transept Recruiters Philip Fal- [section 3, I love to cook and David cone and his from West spend time with [Ste- wife, Lisa 30th to West phen Hirsh], my partner To contact this candidate or to be featured in Résumé Review, e-mail Marie. And 34th] is not of 26 years. I like to maximize [email protected] the annual gala, on June 15, raised entirely se- time with the few friends I have more than the $2 million the non- cure be- left after working so much on profit had targeted. cause it this for 10 years.
barry munger

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22 | Crain’s New York Business | June 22, 2009 20090622-A--0023-MAIN-CCI-CN_-- 6/19/2009 3:19 PM Page 1 chemex / INSATIABLE CRITIC strategies with Camba from 3 p.m. to flickr.com Gael Greene 5:30 p.m. at 884 Flatbush Ave., second THE floor, in Brooklyn. The workshop is free. For details, call (718) 282-2500. WEEK CULTURAL EVENTS MONDAY, JUNE 29 THE CENTRAL ASTORIA LOCAL DEVELOP- Boulud where MENT COALITION will host its 2009 AHEAD Waterfront Concert Series featuring Joe Battaglia and the New York Big Band, JUNE 29-JULY 5 with a fireworks display to follow, at 7:30 punks once ruled p.m. at the Astoria Park Lawn on Shore Boulevard, between Hell Gate Bridge

and the pool.The concert is free. bloomberg news Brasserie DBGB NETWORKING RECEPTIONS Contact (718) 728-7820 or TUESDAY, JUNE 30 [email protected]. WHAT HE’S entices with bratwurst NATIONWIDE EQUITIES CORP. AND FIRST EQUITY ABSTRACT CORP. will be hosting a ENJOY YOUR LUNCH BREAK with some READING and other comforts free business networking mixer from 6 jazz, ragtime and more, sponsored by p.m. to 8 p.m. at Social Bar & Lounge, Local 802 of the American Federation WHEN LESLIE MOONVES isn’t entrification has 795 Eighth Ave., second floor. of Musicians, the Music Performance green-lighting new TV shows or never bothered me, Preregistration is required. Contact Fund and Sam Ash Music Stores.The ducking the press over the David but I am not a strug- (917) 975-5985 or [email protected]. free event runs from 12 p.m. to 1:45 p.m. and takes place on the upper terrace at Letterman/Sarah Palin dustup, gling artist or an im- PROGRAMS & WORKSHOPS Bryant Park, West 42nd Street between the CBS Corp. chief executive is migrant family crowd- TUESDAY, JUNE 30 Fifth and Sixth avenues. For informa- collecting awards—he was just ed into a cheap loft forced to give buck ennis G THE PIGGIE is topped with pulled pork. SMALL BUSINESS OWNERS are invited to tion, contact (212) 768-4242 or honored by the Friars Club. But he way as the city breaks out in rashes a legal clinic sponsored by the Neigh- [email protected]. finds time to juggle several books. of renewal. I am an overfed sybarite. borhood Entrepreneur Law Project, So what’s he reading now? SATURDAY, JULY 4 For me, the only thing annoying DBGB KITCHEN Brooklyn Economic Development “Hemingway,” he said when about Daniel Boulud’s spiffy Bow- Corp. and the Brooklyn Business NATHAN’S FAMOUS INC. HOSTS its AND BAR Library at 280 Cadman Plaza West.The annual Fourth of July International cornered at Cipriani. “The Sun ery “slumming” is the taxi meter’s 299 Bowery Also Rises.” strident demand as we reach DBGB workshop, which runs from 5:30 p.m. to Hot Dog Eating Contest at Surf (212) 933-5300 7:30 p.m., is free, but preregistration is Avenue and Stillwell Avenue in Coney The classics? Really? “He’s Kitchen and Bar, the initials hitch- danielnyc.com/dbgb.html required. Call (212) 382-6633. Island, Brooklyn. The contest will my favorite author,” the tuxedo- ing onto nostalgia for CBGB, the begin at 12 p.m. and is free. For more clad Hollywood hotshot asserted. late, lost punk-music hall. ½ JOIN THE METRO NEW YORK CHAPTER OF information, call (212) 352-8651. Anything more current? He’s So here we are at Boulud’s new CUISINE French and American THE LEGAL MARKETING ASSOCIATION to also deep into House of Cards: A brasserie of beer and bratwurst,a so- comfort learn how to succeed in your new job in SUNDAY, JULY 5 phisticated melding of Lyonnais a workshop from 6 p.m. to 8 p.m. at JOIN THE BROOKLYN CHILDREN’S Tale of Hubris and Wretched PRICE RANGE and American comfort food. The Entrées $17-$26 Park Avenue Tower, 75 E. 55th St., MUSEUM for a lecture on the Running Excess on Wall Street, by William bar has a slightly unfinished feel, SERVING Brunch, lunch, dinner seventh floor. The event is free for of the Bulls festival in Spain from 11:30 D. Cohan. When asked what he’s with sloping cement floors and members and $25 for nonmembers. a.m. to 12:30 p.m., or from 3 p.m. to 4 learning about the wild world of RESERVATIONS Definitely Preregistration is required. Call p.m., at 145 Brooklyn Ave. The event, bistro mirrors. But in the dining finance, the CEO just laughed and NOISE LEVEL Challenging (646) 382-6938 for more details. for children ages 6 and up, is free with room, the careful clutter of copper museum admission of $7.50. Call headed for the safety of the crowd. —VALERIE BLOCK pots on dark wooden shelves adds I can’t wait to return. LEARN HOW TO CREATE YOUR OWN WEB (718) 735-4400 for more details. warmth to the long, narrow stretch SITE and get tips on Internet marketing —maia blume of booths and tables alongside the I will definitely go back. bright open kitchen. I’ll let them simmer a while. It’s already standing-room only, NO HATS Never again. with the usual foodie first-nighters in full swarm. I spy Roberta Morrell and her husband, Hal Rubenstein, oca lurking in the depths. Tony May, Wylie Dufresne and Alas, somewhere in translation, Telepan partner Jimmy Nicholas. the DBGB Dog has become bor- Marcum & Kliegman “The only item we’ve already run ingly sedate. And the 5-oz. burgers out of is chef Jim Leiken’s matzoh feel a bit precious at $11 to $16. I ball soup,” our waiter says.The three guess that’s why French women has a new name and look of us are happy with the spicy broiled don’t get fat.They eat 5-oz. burgers. crab cake and the sausages we’re I’m wild about The Piggie,topped sharing: pork and duck-gizzard with Daisy May’s BBQ pulled pork, Toulouse with cassoulet beans, and jalapeño mayonnaise and Boston let- spicy lamb merguez on overcooked tuce on a cheddar-cornbread bun lemony spinach with chickpeas. with mustard-vinegar slaw; and the I am ready to try all 14 links, Frenchie,with crisp pork belly,arugu- bangers, saucisses and wieners—es- la and caramelized onion on a black- pecially a reprise of the spicy Basque pepper brioche bun with cornichon. blood sausage I tasted at a pre-open- A 10-oz. rib eye with pepper butter is ing party. But my companions splendid, though the impeccably cringe at the suggestion. I surrender greaseless frites are a conundrum— to sanity.After all,starters and burg- some are perfect, some stale and pale. ers and innards from the head-to- Sommelier Colin Alevras chose toe offerings (Tête aux Pieds on the the 24 brews on tap, served in menu) are calling out to me. I can’t carafes,and another 30 craft beers in get any takers for tongue or tripe, so the bottle. I’m delighted when the chef sends You might be tempted to skip out a gift of crispy tripe triangles dessert. Don’t. Go for the excess of alongside spicy tomato-tripe salad. pastry chef Mimi Eberhardt’s cof- This is clearly downtown and fee-caramel sundae with small downscale, but it’s not just charcu- chocolate cookies,chunks of brown- terie,escargot and oysters Parisienne ie, candied pecans, chocolate sauce that makes this place feel très Daniel. and whipped cream.The Kreik Beer MEMBER You can take the boy out of the Up- sundae with cookies, meringue, per East Side, but you can’t take the cherries and sauce Anglaise is a close marcumgroup.com Upper East Side out of the boy. runner-up.I would find my way back There are such haute cuisine touch- for a taste of the apricot-pistachio es as smoked salmon wrapped sundae alone. around a grissini sitting on the edge N E W YORK NEW JERSEY F L O R I D A C O N N E C T I C U T G R A N D C A Y M A N of a bowl of cool cucumber soup that Copyright © 2009 by Gael Greene. I like, except for a clump of dill tapi- Read more at www.insatiable-critic.com.

June 22, 2009 | Crain’s New York Business | 23 Project10 6/16/09 12:04 PM Page 1