20120730-NEWS--0001-NAT-CCI-CN_-- 7/27/2012 7:05 PM Page 1

TEQUILA SHOTS WITH BOB PITTMAN The MTV founder and media exec owns the brand P. 21 CRAIN’S® NEW YORK BUSINESS

VOL. XXVIII, NO. 31 WWW.CRAINSNEWYORK.COM JULY 30-AUGUST 5, 2012 PRICE: $3.00 Quiet bank suddenly makes noise Apple Bank for Savings acquires 30 branches, but stays mum on growth plans

BY AARON ELSTEIN

Earlier in July,Apple Bank for Savings did something completely out of char- acter: It made news. The thrift an- nounced it would acquire 30 branches from Emigrant Savings Bank in a move that will add $3.3 billion in de- posits to its vaults. And that’s where the announce- ment basically ended. Apple was F mum on several INCREASE60% key details about in Apple Bank’s the acquisition, its market share after it acquired 30 first in 17 years. It Emigrant declined, for in- branches. stance, to say how much it paid,and it didn’t elaborate on how much the deal would increase the bank’s market Silicon Subway share locally. (The answer: by 60%.) Such muteness is entirely typical for the bank, which How the F line links NYC’s most entrepreneurial is owned by the estate of a prominent real estate developer and whose web- neighborhoods. Come tour tech’s tri-boro bridge site lacks such basic information as the names and titles of senior manage- ment or board members. (A spokes- woman said information about Apple officers is published elsewhere on an at Bergen Street—a tech company that the F train has become more “as-needed basis.”) IN THE was born. A year later, after raising than a line of convenience for the “To say they’re under the radar BOROUGHS $2.5million in seed money, founder city’s tech companies, funders and doesn’t fully describe how quiet they BROOKLYN Zephrin Lasker shifted his compa- staffers alike.Today,it also ranks as are,” said RBC Capital Markets ana- MANHATTAN ny to its first office, on Washington a powerful drawing card. lyst Gerard Cassidy. “But their ap- Street in Dumbo, Brooklyn, just Talented tech workers are pitch- proach seems to work for them.” QUEENS two stops down on the F line. To- ing their tents in Brooklyn bed- Apple may be New York’s quietest day, with 60 employees, Pontiflex room communities like Ken- bank, but it’s also one of its most suc- BY AMANDA FUNG occupies larger quarters across the sington and Carroll Gardens, and cessful. It remained profitable street,and Mr.Lasker finds himself in the morning rolling up the rails throughout the financial crisis, thanks Five years ago, in a loft apartment spending more time than ever on to their jobs in Dumbo and Man- to a stable, risk-averse management in Cobble Hill, Brooklyn—a half- the subway line. hattan’s Flatiron district. They See APPLE BANK on Page 20 dozen blocks from the F-train stop “We meet with ad agencies and aren’t yet traveling north, up to MOBILE advertisers in Manhattan, so we Roosevelt Island,but that is expect- PLATFORMS: Zephrin Lasker just hop on the F train,” said Mr. ed to change when CornellNYC commutes and Lasker,whose company has devel- Tech opens its 2-million-square- conducts oped a technology that places ads foot campus there in 2017. business all on mobile phone applications.“It’s That is exactly what Cornell along the a good link for us.” University President David Skor- F line. Call it the Silicon Subway or ton,who regularly refers to the line See F TRAIN on Page 20

whatever you want, but the fact is buck ennis NEWSPAPER 20120730-NEWS--0002-NAT-CCI-CN_-- 7/27/2012 8:14 PM Page 1

STATS AND THE CITY

BUMPER CROP: In recent years, a total of 700 food-producing gardens and farms have taken root in the five boroughs—including 390 community gardens and 117 school gardens. That’s more than twice the number of Starbucks that have sprouted here. FYICRAINSNEWYORK.COM

Food-producing gardens/farms

700 Banking’s black eyes or the big banks it is, to borrow a phrase from the Kinks’ Ray Davies, “a Starbucks outposts Fmixed-up, muddled-up, shook-up world.” It starts with the growing investigation into 256 banks conspiring to manipulate LIBOR, the London interbank offered rate. Last week, British Source: Design Trust for Public Space, Center for an Urban Future istockphoto authorities served subpoenas to Lloyds Bank, and numerous RUNNING NUMBERS other institutions are under scrutiny. Meanwhile, it was reported that the former operations chief at Barclays was set to receive a $13.6 million exit 42 955M 46% $71,790 package, even though he was forced out after his bank coughed up more than $450 million to NYC-AREA ACTIVE SURVEYED MEDIAN INCOME settle LIBOR manipulation charges. athletes Facebook users New Yorkers who in downtown competing in the in June, up from say they swear at Brooklyn area in Over at JPMorgan Chase in London, officials at the Bank of England “raised concerns Olympics, out of 750M in work; D.C. was 2010, up 40% 10,490 total July 2011 No. 1, at 62% since 2005 internally” about the “London Whale” trades that led to the bank’s $5.8 billion loss (and Source: WNYC, Source: Source: Source: NYS counting), yet failed to alert other regulators, according to The Wall Street Journal. Sigh. London 2012 Facebook Inc. CareerBuilder Comptroller But the biggest surprise came from the former CEO of Citigroup, Sandy Weill, who told CNBC that big banks should be broken up. It was a stunning statement, considering that Mr. SLOWER TAKEOFF Weill dedicated 20 years of his career to assembling the giant that became Citi, and even Growth in the number of passengers flying to/from NYC has slowed. personally lobbied Congress to overturn the Glass-Steagall Act so his vision of a “financial NYC area airports’ total paying passengers supermarket” could go through. Mr. Weill left Citi years ago, but it seems likely his about-face will have some effect, particularly as U.S. regulators in the coming weeks and months draft % change year-over-year 9.9% rules governing big banks. —aaron elstein

CON ED WORKERS PLUGGED BACK IN. came part of IAC Chairman Barry The 26-day lockout of 8,500 Consol- HOORAY! 5.7% Diller’s media holdings in 2011 when 5.20 4.8% 5.0% idated Edison workers came to an it merged with IAC’s Daily Beast Co. end. With prodding from Gov. An- … CHELSEA MARKET SEEN IN NEW drew Cuomo, Con Ed and its union LIGHT. At hearings last week on a pro- succeeded in working out a four-year posed rooftop addition to the Chelsea 1.1% deal that sent workers back to their Market, City Planning Commission 12/11 1/12 2/12 3/12 4/12 5/12 NYU EXPANSION PASSES. Source: Port Authority of New York and New Jersey jobs. … New Chair Amanda Burden asked point- York University’s plan for a huge ex- ed questions about what impact it CSX TRANSPORTATION has donated the ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY pansion of its sprawl- might have on light at last section of the High Line to the city. ing Greenwich Vil- the High Line next Turning this third leg into a lush park will lage campus won final ‘I’m not door. “How much of cost roughly $90 million. approval from the overweight that sky will you take THIS WEEK IN CRAIN’S City Council,but only away?”she asked an ar- OY VEY! after a series of com- because of big- chitect working for promises that scaled landlord Jamestown FOUR PEOPLE in three IN THE MARKETS ------4 gulp sodas. It’s weeks were injured the project back by Properties on the proj- from needles littering THE INSIDER ------6 about a quarter, to 1.9 because I eat ect. The company has NYC beaches. The Parks Dept. is BUSINESS PEOPLE ------7 million square feet. too much already dialed back its promising a Along the way,several plans. Further (down- clean-up. REAL ESTATE DEALS ------9 bells and whistles pasta, pastrami ward) adjustments are Good idea. OPINION ------10 were added for the sandwiches, likely, as NYU discov- benefit of the school’s ered. … CORRUPTION ALAIR TOWNSEND ------11 neighbors. Some op- bagels and FELLS BRONX POL. transfer station on the East River on GREG DAVID------11 ponents vow to fight cream cheese Bronx City Council- the Upper East Side won the final on in court,but the die man Larry Seabrook thumbs-up from the U.S. Army SMALL BUSINESS------12 looks to be cast. … and lox, red was found guilty of Corps of Engineers. Work on the CLASSIFIEDS ------16 STORIED DEAD-TREE velvet cake, conspiracy and fraud $240 million project will begin by TITLE BITES DUST? charges in connection year’s end. … GAY WEDDINGS’ RICH FOR THE RECORD------19 While reporting a cheesecake.’ with laundering city DIVIDEND. One year after the start of — B’klyn Borough Prez CORPORATE FINANCE: FROM AROUND THE CITY----20 modest increase in its money through non- same-sex marriage in New York, it second-quarter profit, Marty Markowitz profit organizations he looks like it’s been a big success for the A new law allows startups to NEW YORK, NEW YORK ------21 raise cash without the help of IAC/InterAc- controlled. Among city itself,with big gay nuptials gener- SOURCE LUNCH------venture capital firms. Plus: 22 tiveCorp revealed it may turn other things, Mr. Seabrook will have ating an estimated $259 million in Newsweek into an online-only publi- to say goodbye to his council seat. … economic impact.All told,the city is- highest-paid CFOs P. 13 OUT AND ABOUT ------23 cation.If it happens,Newsweek would TRASH DAY ARRIVES ON UPPER EAST sued 8,200 same-sex marriage licens- follow a long parade of titles, includ- SIDE. Sorry, Manhattanites, but your es in the past year,since New York be- CORRECTIONS ing most recently SmartMoney, that time has come. The Bloomberg ad- came the sixth state to legalize gay Alexico did not file for bankruptcy and is still involved in developing 56 Leonard St. This have kissed off paper. Newsweek be- ministration’s plan to build a waste- marriages. —lauren elkies information was misstated in the July 23 “Developer for all seasons takes New York.” The water-saving system at 1 Bryant Park does not recycle wastewater, and not all of its toilets are dual-flush. These facts were misstated in the July 23 “Landlords turn on green plumbing.” STORIES TO WATCH THIS WEEK vol. xxviii, no. 31, july 30, 2012—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at July 31: Discus- Aug. 1: Manhattan Aug. 2: Retailers Aug. 3: AIG New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s sion on role of madam/ex-guber- report July same- reveals 2Q results. New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777.$3.00 a copy, $99.95 one immigrant and natorial candidate store sales in first Majority-owner year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved. minority entrepre- Kristin Davis look at back-to- Uncle Sam will be neurs on Staten Is. launches her book. school results. watching keenly.

2 | Crain’s New York Business | July 30, 2012 20120730-NEWS--0003-NAT-CCI-CN_-- 7/27/2012 7:55 PM Page 1

City’s gun BOXED IN: Young Woo’s downtown Brooklyn market features shops in steel shipping business is containers. Now he’s setting his sights on redeveloping the Kingsbridge Armory in the Bronx. fully loaded It’s hard to pack heat in this town. There’s help—for a price

BY ADRIANNE PASQUARELLI

The Colorado shooting has again put the firearm industry in the na- tional spotlight. It has also focused attention on the handful of New York City shooting ranges, shops and consultancies that have survived by dutifully playing by a complicat- ed set of local rules designed to make gun ownership burdensome. Some have thrived on that com- plexity. Consultants and attorneys charge as much as $15,000 to help gun lovers like Donald Trump pack heat. “There are high-profile people as well as average businessmen who want a permit but don’t feel com- fortable doing the process them- selves,” said John Chambers, an at- torney who helped start consultancy Gun Permits Inc. four years ago. Gun entrepreneurs prefer a low profile to avoid controversy.Though the number of illegal firearms has

buck ennis been roughly halved,to 3,980,in the city in the past five years as the crime rate has dropped, bloodshed re- mains in the headlines. There were 314 shooting homicides in 2011. Last week, a 4-year-old was shot to WOO HOO! death while playing in a Bronx park, just days after gunshots critically in- jured a 3-year-old in Brooklyn. Developer Young Woo’s unconventional approach yields results “For some city people, the only time they hear about guns is if some- & Associates. “It was big and un- and unusual retailers. shops in old, multihued shipping one is shooting someone else—they BY THERESA AGOVINO usual.” Unconventional thinking is Mr. containers. Soon, he hopes his don’t understand the culture that’s As the city prepares to pick a Woo’s trademark.From developing firm’s plan to transform the dilapi- involved in the industry,” said Tom As a 19-year-old Korean immi- company to redevelop the long- a Chelsea condo with a car elevator dated building on Pier 57 in Hud- King, president of the Troy-based grant who had just settled in the vacant structure, Mr. Woo knows that allowed owners to bring their son River Park into a vibrant New York State Rifle & Pistol As- Bronx,Young Woo recalls being in- what it should become.He sees it as vehicles up to their doors to snap- mixed-use market will enter the sociation, a 141-year-old affiliate of trigued by the hulking Kingsbridge not just another shopping mall, as ping up American International city’s formal review process. the National Rifle Association. Armory as he biked past,delivering earlier plans for the site envisioned, Group’s art deco headquarters in “Young looks at building differ- Better not to attract unwanted groceries. but as a 21st-century “town the depth of the recession,Mr.Woo ently from most people,” said attention. The ground floor of “I wasn’t sure what it was,” said square,” a lively spot with a concert is full of surprises. Last year, his Adam Schwartz, managing direc- Beretta’s New York flagship town- the 59-year-old founder of real es- venue, sports stadium and rock- firm opened the DeKalb Market in tor and head of U.S. real estate at house, housing cashmere sweaters tate development firm Youngwoo climbing wall, plus movie theaters downtown Brooklyn, housing its See DEVELOPER on Page 18 See CITY’S GUN on Page 18

generates 130 gigabytes. After two years, the center expects to have 5 The secret to genomes? Lotsa juice petabytes (or 5 million gigabytes) of information. Most will be stored at Few buildings in city build a $47 million head- old New York Telephone them execute complex algorithms at Sabey’s data warehouses in Wash- quarters at 101 Sixth Ave. Co.: access to a huge the speed of light.Those warehous- ington state (where electricity and can power data-heavy The deal would have been amount of electricity. es need major wattage. space are cheaper) and connected via business. Here’s one unlikely were it not for an- “Access to that power Few buildings in the city have a secure network to 375 Pearl,which other building, 375 Pearl is, in our view, probably 375 Pearl’s electricity access. One will serve as a hub for scientists at the St., the 32-story structure worth more than the exception is Google’s Ninth Avenue center’s Sixth Avenue centerpiece. BY JEREMY SMERD at the foot of the Brooklyn building,” CEO Dave building, a former Port Authority Given the limited supply of these Bridge known for the Ver- Sabey said,“because you headquarters and freight station. juiced-up buildings and the cost of While Gov.Andrew Cuomo helped izon sign that adorns it. just can’t replicate that Another is 60 Hudson St., the for- outfitting them, Mr. Sabey expects broker a deal between Consolidated Last year, Seattle-based infrastructure.” mer Western Union building that’s competitors in many fields to increas- Edison and its biggest union last Sabey Corp. bought 375 Data-heavy busi- now a full-block telecom structure ingly collaborate on their data needs. week in the name of keeping the Pearl for $120 nesses in finance, acting as a worldwide Internet hub. “Not one of these research insti- electricity flowing, a less heralded million, drawn by technology and The Pearl Street data center will tutions,” he said of the genome but perhaps more significant power a rare feature that 1,000,000,000,000,000 health care in- ultimately be able to draw as much as group’s members, “has the money to play was made by the New York owes its existence BYTES IN A PETABYTE (equal to 1 million creasingly need 40 megawatts of electricity.The juice buy the computing infrastructure gigabytes). The New York Genome Center Genome Center. to the building’s needs enough power to fuel computers nearby high- will help power the New York necessary to really be able to model The 11-institution medical re- origin as a switch- that will generate 5 petabytes of data speed data ware- Genome Center’s immense data these massively complex interactions Ⅲ search group announced its plan to ing center for the over the next two years. houses to help volume. Each sequenced genome between genetic communities.” istockphoto

July 30, 2012 | Crain’s New York Business | 3 20120730-NEWS--0004-NAT-CCI-CN_-- 7/27/2012 7:29 PM Page 1 IN THE Man bites dog: Website hopes MARKETS to rescue brick-and-mortar biz by Aaron Elstein How LuckyAnt.com students at New York University. exceeds its $23,000 goal, since a “It’s the neighborhood rallying move will likely cost between Citi’s parts worth is helping keep the around,” Mr. Moyal added. “That’s $50,000 and $100,000. The crowd the whole point of crowd funding.” funder sets what it believes is an old East Village alive An East Village fixture for the past achievable goal, since it doesn’t col- 35 years,the St.Mark’s Bookshop has lect the money from pledges unless more than whole BY MATTHEW FLAMM been pushed to the brink by a succes- the campaign hits its target. sion of challenges, including the eco- “You’re working toward a goal, he odds of There may be light at the end of the nomic downturn, the rise of online and that goal has to have meaning,” Citigroup Inc.’s tunnel for the St. Mark’s Bookshop. book buying—followed by the rise of explained Lucky Ant co-founder board of If so,it will be seen on the website of e-books—and increases in its rent. Nate Echeverria about the rule. T Lucky Ant, the hyperlocal crowd- The store won a reprieve last fall, Founded a year ago on the Low- directors listening to funding platform that is helping the when its landlord, Cooper Union, er East Side, Lucky Ant (the name former Chief Executive embattled literary landmark raise agreed to a temporary $2,500 rent refers to the communal nature of ant Sandy Weill seem about the money it needs to move to a reduction following a petition drive colonies) went live in January and cheaper location. The goal is to by supporters that brought in more has since helped some 20 small busi- as remote as the Penn bring in $23,000 in small donations than 40,000 signatures. But the re- nesses raise capital, usually to ex- State football team by Aug. 17. As of last Friday duction runs out in November, and pand operations. It takes a commis- revisiting Joe Paterno’s afternoon, the tally on subsequent hikes will sion if campaigns prove successful. playbook. But suppose luckyant.com was ap- bring the monthly total The startup sees donations as in- proaching $4,000. Sprinting to nearly $23,000 as of vestments in neighborhoods. And the bank heeded the mind-boggling advice given by its Lucky Ant founder Jan. 1, according to a deals for donors. A $25 donation to creator last week and broke itself up. What would Jonathan Moyal said to raise Cooper Union spokes- the St. Mark’s Bookshop, for in- Citigroup’s various components be worth if they were freed the dollars were pacing woman. stance,earns a 5% discount on books from the conglomerate? ahead of the only other $23,000 The store says it now for three months. large-scale fundraiser pays an unaffordable Though the Living Theatre and Finding out—or at least coming to a reasonable answer— the startup has held— in days $18,700 per month.“It’s St. Mark’s Bookshop have helped took all of about 15 minutes, a pen and a paper napkin.The the $24,000 campaign in our interest to move raise the startup’s visibility, the short and simple answer: about $38 a share, or 40% above in May that kept the as soon as possible, but founders insist they’re not working Living Theatre from we need to raise the cap- to preserve high-profile cultural Citigroup’s current price. being evicted from its ital to do that,” said Bob landmarks for sentimental reasons. To get that figure, we applied stock-valuation techniques Clinton Street home. Contant, one of the owners. “They really have a plan to sur- used by CLSA’s Mike Mayo, one of the best bank analysts in The Living Theatre had the sup- He and co-owner Terry McCoy vive,” Mr. Moyal said of the book- the business, who earlier this year estimated JPMorgan port of institutions and patrons of are looking to stay in the East Vil- store’s owners. “We wouldn’t have the arts, some of whom made dona- lage and downsize to around 2,000 taken on this project if we thought it Chase’s breakup value. So, here goes. tions of up to $1,500, Mr. Moyal square feet from 2,700—and pay was a Band-Aid before the store Citigroup is essentially made up of five different said.Contributions to the St.Mark’s about half the rent. Mr. Contant closes in six months.” businesses.There is investment banking (about 33% of Bookshop have been more in the said he has seen spaces advertised in revenue), retail banking (25%), credit cards (25%) and $10 to $25 range, with many of the $10,000 to $12,000 range. LISTEN to a discussion at them coming from professors and He is also hoping that Lucky Ant CrainsNewYork.com/podcasts transaction services (15%). There’s get a p/e ratio of 9.6. That is 40% also Citi Holdings, which houses higher than Citi’s current estimat- all the unwanted detritus from the ed p/e ratio of 6.7, according to Weill era, and we’re excluding that Bloomberg data. Multiply 9.6 by from our analysis because (a) it re- $3.95, which is Citi’s estimated ally complicates matters and (b) the earnings per share for next year,and current regime at Citi already is do- you get $37.92. Voilà! ing its best to get rid of the division. Of course, there is lots to quib- Now, Citi’s investment banking ble with here.Goldman and AmEx division resembles Goldman Sachs’, command premium multiples be- and Goldman is valued by investors cause they are premier companies; at around nine times expected earn- Citi’s equivalents, well, aren’t. ings.Investment banking makes up There is also the significant issue of a third of Citi’s business, so how an independent ex-Citi in- let’s assign it a weighted price-to- vestment bank would fund itself. earnings ratio of 3.0. You also could argue that accurate- GROW. WISELY. Then do the same thing to Citi’s ly valuing Citi’s retail banking busi- retail banking business,whose clos- ness requires separately analyzing est global peer is probably HSBC, its segments in the U.S.and abroad, which trades for seven times the latter of which are much larger. Everyone wants to grow. But grow how? In which expected earnings. So, the weight- Anyway, the point is that if Citi markets? At what cost? To grow wisely, you need an Charles Weinstein ed p/e ratio of the Citibank retail were broken up, shareholders operation is 1.8. would probably be better off. This advisor who really knows your business...and knows Chief Executive Offi cer 212.949.8700 On the credit card front, Ameri- isn’t a new argument,by any means. you. Who can deliver tailored solutions that create [email protected] can Express trades for 13 times ex- Bill Smith, the president of opportunities, maximize effi ciency and build business. pected earnings,so let’s assign Citi’s Smith Asset Management, who Howard Cohen card business a p/e of 3.3. was advocating a breakup five years EisnerAmper is that advisor. We roll up our sleeves Chairman to get to the bottom of your toughest challenges so Finally, Citi’s transaction serv- ago when Citi was worth a whole 732.287.1000 ice division is almost the exact same lot more, said he’s given up on the you get the advice and strategies you need to create [email protected] size as State Street, a major process- idea and moved on. “Now Bank of sustainable growth. ing bank that trades for more than America,” he offered as an example, www.eisneramper.com 10 times expected earnings, so let’s “if you break that up, that’s a $15 or TM give that Citi business a p/e of 1.5. $20 stock, more than double the Let’s get down to business. Ⅲ EisnerAmper LLP Add those numbers up and you current price.” Accountants & Advisors

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† Early Pay Discount: Pay any portion of your balance within 10 days of the statement closing date and get a 1.5% discount on virtually all purchases made that month. The discount will appear as a credit on the following billing statement. Extra Days to Pay: Pay at least 10% of the balance from new activity on your billing statement plus the entire amount of any previously deferred payment by the Payment Due Date on that statement and Defer Payment of the remainder of that balance until the closing date of your next billing cycle with no interest. Other terms and restrictions apply. Visit open.com/plum for details. 20120730-NEWS--0006-NAT-CCI-CN_-- 7/27/2012 7:06 PM Page 1 THE Ban threatens soda fountain INSIDER by Andrew J. Hawkins and Shane Dixon Kavanaugh get that the purpose of this ban is for six warehouses. Executives from the Mayor’s size limit people to consume less soda,” said company did not return calls, and Jorge Olson, president of beverage neither did Coca-Cola Refresh- could crimp sales, consultancy Premier Brands Inc. ments executives. change bottling It turns out that the three major bottling plants in the city—Pepsi- Some 8,000 jobs Cola Bottling Co. of New York in The two companies employ BY LISA FICKENSCHER College Point,Queens,and Canar- about 2,400 workers. Altogether, sie, Brooklyn, and Coca-Cola Re- there are 8,000 people employed in What a difference four ounces makes. freshments in Maspeth, Queens— the soft-drink business in the New If New York enacts a rule to limit don’t even make 16-ounce bottles. York metropolitan area, according bottles and cups of soda and other They make 12-ounce cans and 20- to Mr. Vitta. These companies also sweetened beverages to 16 ounces, ounce, 1-liter and 2-liter bottles. supply vending machines, which down from the ubiquitous 20 ounces If the ban is enacted, they will ei- would require retrofitting, or in or even 32 ounces, the ripple effect ther have to purchase 16-ounce bot- some cases, replacement. could include job losses and millions tles from manufacturers outside of “If you put a 16-ounce bottle in of dollars in retrofitted manufactur- the city or retrofit their machinery, a machine that carries 20-ounce ing equipment, say which is made in Italy bottles, it’ll jam,” said Terence Po- newscom beverage industry and Germany. And letti, owner of Brooklyn Heights executives. neither company is Beverage Distributors, which dis- Secrecy could hurt Cuomo in 2016 Of course,a reduc- sure its machines can tributes Pepsi products to pizze- tion in the city’s sky- be retrofitted. rias, delis, restaurants and vending ov. Andrew Cuomo’s penchant for information control is rocketing obesity “It’s a sophisticat- machines. not bothering New Yorkers, but could damage his rates could be anoth- ed process, to make a Another problem unique to the political prospects down the road, insiders said. er side effect. bottle of soda,” said New York market is the high cost of G The health bene- Joe Vitta, secretary real estate, which has limited the size The New York Times and the Albany Times Union reported fits of a ban on over- A 20-ounce sugary drink can treasurer of Local of the three production facilities here. that Cuomo staffers had pulled documents from the state size sugary drinks, contain the equivalent of 16 812, which represents “They couldn’t wedge another archive for his tenure as attorney general.The governor sends which will be voted packets of sugar. the workers at the thing into their plants,” said on in September, are Source: NYC Department of Health and three plants. “Every Mr. Vitta. untraceable Blackberry messages rather than emails. And his Mental Hygiene obvious. If people bottle has a specific As Mr. Olson sees it, the bever- office collected a dossier on at least one reporter. buck ennis consume fewer calo- label and design.” age makers will have little choice but “It’s just weird,” said an Albany insider. “Over the long ries—the intended goal of the As the companies weigh their to change their offerings. Most in ban—they could lose weight and options, they have told Mr. Vitta the industry believe the regulation, run, you establish a narrative of a creepy, Nixonian-type avoid obesity-related diseases. that the regulation would result in championed by Mayor Michael government, and that begins to erode people’s confidence.” job losses because they expect to Bloomberg, will be approved by the But voters don’t often care. Mr. Cuomo’s approval rating New bottling machinery needed make and sell less soda here. Board of Health.If so,it will take ef- is above 70%. His image as a nonpartisan, effective manager For local beverage manufactur- Pepsi-Coca Bottling Co. bottles fect in March 2013. ers, however, complying with the such brands as Gatorade, Mountain “The industry has to adjust and will likely be sustained into the 2016 presidential race. proposed regulation will present Dew, Tropicana juices and Hawai- produce products with fewer calo- Still, the air of secrecy could be an obstacle if Mr. Cuomo many logistical challenges and most ian Punch, in addition to Pepsi- ries and less sugar and come up with takes his ambitions national. Editorial boards, for example, Ⅲ certainly a dip in sales.“Let’s not for- branded products. It also operates new products,” Mr. Olson said. don’t look kindly on candidates with transparency issues.

“If you run for president, you thawing,” an don’t want the [Washington Post’s] insider said. Marcus Brauchlis, or the [Times’] Jill Mr. Sitt said he Abramson, or whoever is the editor feels “vindicated” of the L.A.Times or Chicago by Coney Island’s Tribune, or Tina Brown or those recent record

people thinking that you’ve got a crowds and flurry buck ennis Joseph Sitt guy with a secrecy problem,” said of new businesses. one longtime Albany observer. “Everybody One political operative talked about its demise a few years suggested that press coverage of ago and counted the death toll,” the governor has been so positive Mr. Sitt said, referring to that his team overreacts to the amusement district businesses he occasional negative story. shuttered while battling the “When reporters show streaks administration. “But it’s clear that of independence, … the outcry is there’s a way to keep Coney amplified by its infrequency,” the Island’s flavor and at the same operative said. “[Cuomo staffers] time move it forward.” react like the world’s coming to an end. No, it’s not. It’s just Tuesday.” Donor fatigue Sitt makes peace The city’s political ATM is nearly tapped out from high-stakes The long feud between Joseph Sitt federal races. Yet burned-out and the mayor’s office may be donors are being hit up by 2013 over.The city quietly rezoned land city candidates. “They’re so busy owned by the Brooklyn developer maxing out on the presidential, on to make way for a nearly 200,000- the Senate, on the House, and square-foot retail project—his they’re like, ‘Yeah, we’ve got to do first green light from City Hall all this city stuff, too?’ ” said one since their clash over the fundraiser. redevelopment of Coney Island. Gov. Andrew Cuomo’s 2014 The Thor Equities chief has also campaign is also vacuuming up begun speaking publicly about the cash. “He is taking the air out of peninsula’s future for the first time whatever funding we’ve got,” said in years. Richard Anderson, president of the “Sitt’s cold war with the city is New York Building Congress. Ⅲ

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6 | Crain’s New York Business | July 30, 2012 20120730-NEWS--0007-NAT-CCI-CN_-- 7/27/2012 2:25 PM Page 1

BUSINESS

30%of nationwide workers are full- time contract employees PEOPLE Source: OI Partners

EXECUTIVE MOVES GOVERNOR OF GOVERNORS: KPMG: David H.W. Leslie Koch Turner, 53, joined oversees about the audit, tax and 60 events on the advisory firm as island. chief financial officer, effective Aug. 1. He was previously executive vice president at Thomson Reuters. Cornerstone: Ed James, 42, has resumed his prior role as president of the brand strategist’s public relations division, which he co-founded. He was previously vice president of global public relations for Gibson Guitar. The Doneger Group: Jonathan Greller, 41, joined the market trends firm as chief operating officer, a newly created position. He was previously senior vice president at Lord & Taylor/Hudson’s Bay. Melissa Peterson, 26, was promoted to young men’s market analyst. She was previously associate market analyst. Courtney Quinn, 29, was promoted to merchandising director of the Carol Hoffman contemporary, better, bridge and designer division. She was previously women’s contemporary fashion analyst. Apollo Global Management: Martin Kelly, 44, joined the investment management company as chief financial officer, effective no later than Oct. 1. He was previously managing director and chief financial officer of the Americas and global head of financial control at Barclays. American Theatre Wing: William Ivey GOTHAM GIGS Long, 64, was elected chair. He was previously a member of the board. Pamela Zilly, 64, joined the board. She was formerly senior managing director at the Blackstone Group. Pamela J. Bell, 45, joined the board. She is a founding partner of Kate If I had a hammock Spade. Mark J. Abrahams, 51, joined the board. He is the interim chief financial officer at The American Society for Leslie Koch makes her mark on Governors Island the Prevention of Cruelty to Animals. Lymphoma Research Foundation: After earning her M.B.A. from the Yale School of “I’d never seen or heard of hammocks in a park Steven J. Prince, 61, Visitors was elected Management, Leslie Koch spent six years as a before,” said Ms. Koch, who started her job in chairman of the marketing executive at Microsoft Corp. 2006, a year after the island was opened to the board of directors jumped to for the nonprofit. Surprisingly, the president of the Governors Island public.The hammocks were an instant hit among He was previously 448,000 Preservation and Education Corp. says her tenure the throngs visiting the island, whose numbers executive vice at the tech giant was excellent training for her swelled to 448,000 last year from a mere 8,000 in president of the last year, board of directors. current gig, where she oversees roughly 60 events 2005. ¶ This summer, the park is open only on Dr. John P.Leonard, 47, was elected from on the 172-acre former military base and manages Saturdays and Sundays to accommodate chairman of the scientific advisory efforts to increase recreational and commercial construction.Thirty acres under development will board. He was previously chairman- 8,000 in elect. use. ¶ “There are similarities about designing great feature hammocks, ball fields, fountains and CBRE Group Inc.: Robert Stillman, 47, software and great public space,” said the Brooklyn rolling lawns.The $75 million project is slated to was promoted to vice chairman of the 2005 commercial real estate firm. He was resident, who grew up on the Upper West Side.“It be completed next year. At the same time, the city- previously executive vice president. is all about watching customers use the product.” ¶ funded nonprofit is spending $175 million to Ben Friedland, 37, was promoted to executive vice president. He was Ms. Koch observed visitors to the island’s south upgrade infrastructure and demolish unused previously senior vice president. end as they stood admiring the view of New York buildings. ¶ For Ms. Koch, who started volunteer- William Iacovelli, 43, was promoted to executive vice president. He was Harbor and thought it would be a great location ing for her local assemblyman when she was 14, previously senior vice president. for hammocks so people could lounge. ¶ it’s a dream job.“Being on the island and watching Ambrose Employer Group: David Colleagues and other experts were skeptical people enjoy it is just the most profound experi- Zodikoff, 48, joined the professional employer organization as chief because putting hammocks in parks isn’t common. ence I can imagine,” she said. —theresa agovino See EXECUTIVE MOVES on Page 8

July 30, 2012 | Crain’s New York Business | 7 20120730-NEWS--0008-NAT-CCI-CN_-- 7/27/2012 7:06 PM Page 1

BUSINESS PEOPLE

surgery and robotic surgery and co- CORPORATE LADDER EXECUTIVE MOVES director of the surgical simulation and training lab at the Children’s Hospital of Continued from Page 7 Philadelphia. ESTÉE LAUDER’S NEW FACE information officer. He was previously New York Life Capital Partners: Steven M. global IT director at Whole Foods Benevento, 47, was promoted to chief NEARLY A YEAR AFTER its longtime chief financial officer and executive vice president announced Markets. investment officer, a newly created plans to retire, the Estée Lauder Cos. appointed Tracey Travis to the post, effective Aug. 20. Operative: Thomas L. Bianco, 57, joined position, at the equity management In this role, she will be a member of several senior management groups. Ms. Travis, 50, was the software company as chief revenue company. He was previously senior most recently senior vice president and CFO at Ralph Lauren Corp., a position she held since 2005. officer. He was previously managing managing principal. “We find it both interesting and encouraging that Travis would come to Estée Lauder from director at Bank of America Merrill Murray Hill Properties: Joe Friedman, 57, Lynch. joined the real-estate company as senior Ralph Lauren, as both companies are very much family-owned and family-influenced New York-Presbyterian/Morgan Stanley managing director. He was previously businesses,” Wendy Nicholson, an analyst at Citi Investment Research, said in a note. “We Children’s Hospital: Dr. Pasquale Casale, associate director at Adams & Co. imagine Travis’ credentials in this regard would be well-received by Estée Lauder’s board 42, has been appointed chief of pediatric Abe Labaton, 26, joined as managing and current management.” urology at the hospital and professor of director. He was previously director at The company’s previous CFO, Richard Kunes, held the position for 12 years. He will urology at Columbia University College Vicus Partners. become executive vice president and special adviser to the CEO, working on special of Physicians and Surgeons. He was Nascar: Jon Schwartz, 39, was promoted previously director of minimally invasive to senior director of business and brand projects. —EMILY LAERMER communications. He was previously director of business communications. Sabrina Macias, 34, joined as director of brand and consumer marketing communications. She was previously vice president at Edelman Worldwide. Chris Tropeano, 36, joined as senior manager of business We’re changing communications. He was previously associate director of communications at Sports Illustrated. The Public Theater: David Wharton, 34, joined the arts organization as director of technology. He was previously director of the way you infrastructure at Blue Man Group. Doremus: Barry J. Fleming, 46, joined the communications specialist as director of engagement, a newly created position. He was previously consulting director at see solar energy. Acceleration. Kelly Higgins, 27, was promoted to manager of strategic partnerships, a newly created position. She was previously a new business associate. Charlin Polanco, 26, joined as senior digital producer, a newly created position. She was previously senior interactive producer at Moxie Interactive. The Children’s Aid Society: Warren M. Petty, 49, joined the nonprofit as director of talent management and human resources, a newly created position. He was previously associate vice president for human resources at The New School. Wolfgang Puck Catering: David Smith, 46, joined the theater and club manager as regional director. He was previously principal at Smith Hospitality Group. Investors Bank: Mark Noto, 39, joined as senior vice president of business lending, a newly created position. He was previously senior vice president at Banco Popular North America. adtivity by appssavvy: David Lavine, 37, joined the advertising technology company as senior vice president of sales, Lower Total Supports No Capital West Coast, a newly created position. He Energy Costs Sustainability Investment was previously vice president of sales at Adconion Media Group. Scott Sklar, 31, joined as senior sales director, East/Midwest. He was previously regional sales manager at CBS Interactive. A solar energy system that works for you. Channing Gardiner, 37, joined as sales director, Midwest. He was previously Finally, a turnkey solar solution that has ROI written all over it. A Power Purchase Agreement with Constellation national account manager at Farm Energy is the simple, savvy way to implement responsible, sustainable green solutions while making smart Journal Media. financial sense for you. No upfront capital required: we finance, design, construct, own and operate your McArthurGlen: Andrew Schulman, 50, project, giving you long-term convenience, results and peace of mind. Now that’s a smart investment. See joined the owner, developer and manager of designer outlets as senior vice more at www.constellation.com/solar. president of leasing for North America. He was previously executive vice president of leasing for Thor Equities. —emily laermer Brilliantly Simple. Powerfully Green. EXECUTIVE PROMOTIONS The fastest way to get an announcement into Crain’s is to submit online. Fill out the form at www.crainsnewyork.com/section/ executive_moves. The Executive Moves column is also available online.

8 | Crain’s New York Business | July 30, 2012 20120730-NEWS--0009-NAT-CCI-CN_-- 7/26/2012 5:16 PM Page 1

REAL ESTATE DEALS BARE BONES Modeling agency 101 SIXTH AVE. 27-01 QUEENS PLAZA 55 E. 52ND ST. ASKING RENT; TERM: NORTH ASKING RENT; TERM: Undisclosed; ASKING RENT; TERM: Undisclosed; undisclosed Around $40 a square undisclosed owner sitting pretty SQUARE FEET: foot for sublease; 10.5 SQUARE FEET: 90,000 years 150,000 on seven TENANT; REPS: floors SQUARE FEET: Intercontinental reative World Management has inked a two-year sublease for 100,000 on third floor space at 41 Madison Ave., across from Madison Square Park. TENANT; REP: The Exchange; Rocco New York Genome TENANT; REP: Laginestra and Paul The owner of modeling agencies will take 6,100 square feet, Center; undisclosed Publicis; Gordon Odgen of Byrnam Wood Myers of CBRE Group Inc. about half the 41st floor, from Water Island Capital. Brokers LANDLORD; REP: Edward Minskoff; LANDLORD; REPS: MetLife; Lloyd LANDLORD; REP: Fisher Brothers declined to give the rent, but the building is in midtown south, undisclosed Desatnick and Erika McNeil of Jones Lang represented itself the hottest office market in the city.Asking rents in the area averaged $49.43 C BACK STORY: The center was founded by LaSalle BACK STORY: The financial services a square foot in the second quarter, up 11% from the year-earlier period, ac- a partnership of large medical and BACK STORY: MetLife leases the entire company will take space left empty by MF cording to Cushman & Wakefield Inc. academic institutions, including New York building but has sublet large portions of it, Global last year, according to Commercial Water Island leased the entire 42nd floor of the building in 2010,and the University, North Shore-LIJ and Cornell. including 200,000 square feet to JetBlue. Observer, which first reported the deal. asking rent was $49 a square foot. Two months ago, Water Island added the space on the 41st floor, knowing it would be subleased for a while, according to Jeffrey Peck of Studley, who represented the com- pany with his colleague Christopher Foerch. Typically in a sublease deal, the sublandlord must rent at a discount and take a loss. But midtown south is so desirable that Water Island could rent out the space at a rate that will allow it to break even, Mr. Peck said. Rudin Management Co. owns the building, and Mr. Peck said that both Water Island and Creative are impressed with how the landlord runs the property. Creative has been located in tem- porary space since it was forced to move out of 404 Park Ave. South, which is being redeveloped. It plans to move into the new space by the end of the month. “The building is one of the best in the area,”said Peter Gross,a man- aging director at Williamson Picket Gross Inc., who represented Cre- ative with his father, Jim Gross. They are owners of the firm. —theresa agovino Salon nails You expect an new digs A new tenant is taking up retail space expert in capital in the Hudson Square neighbor- hood. Nail Spa & Beyond, which boasts two other locations,has signed markets and also a 10-year lease for 900 square feet at 66 Downing St. The deal closed at the asking rent of $110 a square foot. in your market. The nail salon brings new life to the street, according to Steve Rap- That’s Key, where you get the best of both worlds. paport, the Sinvin Real Estate bro- We are KeyBank, the community bank you know with ker who, along with colleague Kristin McCann, represented land- local knowledge and expertise. lord the Gottlieb Organization. In We are also KeyBanc Capital Markets Inc., a full the past two years, Mr. Rappaport service investment bank that in 2011 raised over has added a number of eateries to the $125 billion in the capital markets, including debt, strip, including the Brooklyneer at equity, and M&A advisory. 220 West Houston. “Before, it was just desolate office Together, we have the experience and the capabilities space,”Mr.Rappaport said.“But now to help you succeed. We’re not just the expert you the neighborhood is exploding.” deserve. We’re what you expect. Rents reflect that change. The Brooklyneer deal of 2010 carried an asking rent of $70 a square foot— To learn more, visit key.com/whatyouexpect. 40% below current asking prices.Mr. Rappaport is currently marketing a 3,500-square-foot space on the cor- ner of Varick and King streets with an asking rent of $125 a square foot. Jared Jasinski of New York Com- mercial Real Estate Services repre- sented Nail Spa & Beyond in nego- tiations. —adrianne pasquarelli

July 30, 2012 | Crain’s New York Business | 9 20120730-NEWS--0010-NAT-CCI-CN_-- 7/27/2012 2:55 PM Page 1

OPINION CRAIN’S NEW YORK BUSINESS Sandy Weill’s about-face editor in chief Rance Crain publisher, vp Jill R. Kaplan andy Weill, the former head of Citigroup, will be able to absorb the inevitable blowups, like JPMorgan EDITORIAL editor Glenn Coleman stunned the financial world last week when he Chase’s recent trading loss of as much as $9 billion. deputy managing editors Valerie Block, said that investment banking and traditional Considering New York’s dependency on the health and Erik Ipsen assistant managing editors Erik Engquist, banking should again be separated by law.This soundness of its financial services companies, it’s essential to Jeremy Smerd from the man who had been, as much as find the right answer to the too-big-to-fail question. senior producer, news Elisabeth Butler Cordova news producer Lauren Elkies anyone, the architect of the modern megabank. contributing editor Elaine Pofeldt “What we should probably do,” Mr. Weill columnists Greg David, Alair Townsend crain’s health pulse editor Barbara Benson opined on CNBC, “is go and split up investment banking senior reporters Theresa Agovino, from banking—have banks be deposit takers, have banks No to sick-days bill Aaron Elstein, Lisa Fickenscher, Matthew Flamm, S Daniel Massey, Miriam Kreinin Souccar make commercial loans and real estate loans, have banks do Backers of a City Council bill requiring employers to provide reporters Amanda Fung, Andrew J. Hawkins, Shane Dixon Kavanaugh, Adrianne Pasquarelli something that’s not going to risk the taxpayers’ dollars, paid sick days won’t take no for an answer. Speaker Christine web reporter, producer Ian Thomas that’s not going to be too big to fail.” Quinn has halted the legislation, yet advocates recruited art director Steven Krupinski deputy art director Carolyn McClain There are only two remedies for too-big-to-fail Gloria Steinem and actress Cynthia Nixon as spokeswomen. staff photographer Buck Ennis conglomerates: Break them up or prevent them from No doubt they picked them because the speaker is female. copy desk chief Steve Noveck copy editor Thaddeus Rutkowski failing.The Dodd-Frank reforms attempt the latter, but But Nancy Ploeger, who runs the Manhattan Chamber of data editor Suzanne Panara many banks and members of Congress are fighting even Commerce, had it exactly right when she said: “What do assistant data editor Emily Laermer researchers Eva Saviano, Amy Stern that, so there will be no forced breakups any time soon. these women know about running a small business?” interns Esthena Brutten, Ken Christensen, Nonetheless, Mr. Weill’s epiphany should prompt the Paid sick time is provided by nearly all businesses that can Cara Eisenpress, Emily Lundeen, Mary Shell industry and policymakers to step back and re-examine old afford to—on terms that make sense for them. Some ONLINE AND INTERACTIVE SERVICES assumptions. Investors have already signaled that stuffing combine sick and vacation time, so costs are predictable and general manager, online & e-commerce strategy Kira Bindrim dozens of financial businesses into a single, massive entity workers don’t play hooky with the sniffles. But the bill senior web developer, interactive can create something worth less than the sum of its parts. sponsors want the government making those decisions. A Chris O’Donnell The current titans of banking, led by JPMorgan Chase mandate would also let unions come to the table with nine ADVERTISING, MARKETING AND PRODUCTION advertising director Trish Henry chief Jamie Dimon, Mr. Weill’s former protégé, say the annual sick days in hand, enabling them to bargain for more. senior account managers Irene Bar-Am, industry has learned from its mistakes and that modest The way to increase paid sick time is to help businesses Courtney McCombs, Sheryl Rose, Suzanne Wilson account executive Jill Bottomley Kunkes safeguards will prevent future bailouts. Mr. Dimon has an earn enough money to offer it. We urge Ms. Quinn to sales coordinator Danielle Wiener exceptional record at his company. And maybe that’s the maintain her opposition and focus her colleagues on helping newsletter product manager Alexis Sinclair credit Todd J. Masura (313-446-6097) problem: Not every institution can be exceptional. Not all businesses, not micromanaging them. director, audience development Michael O’Connor senior marketing manager Catherine Schutten CRAIN’S ONLINE POLL COMMENTS event producer Courtney Williams reprint sales manager Lauren Melesio production and pre-press director Michael Corsi advertising production manager Suzanne Fleischman Wies

Popping off on soda limit TO SUBSCRIBE: For print and digital subscriptions or customer HISPANIC CHAMBER: BAN obese or overweight, Mayor tainted Mr. Weiner gives the service, e-mail [email protected] IS BAD FOR BUSINESSES Bloomberg’s public health campaign donations to charity or call 877-824-9379 (in the U.S. and Canada) or bloomberg newsbloomberg 313-446-0450 (all other locations). $3.00 a copy for efforts against obesity are and closes the door on his the print edition; or $99.95 one year, $179.95 two SHOULD THE FED TAKE As we talk about the impact the understandable.Targeting a political ambitions. It’s been but years, for print subscriptions with digital access. beverage ban will have on small select industry, however, is not a little over a year since he was www.crainsnewyork.com/subscribe FURTHER STEPS TO businesses throughout New the answer to addressing the pressured to resign by House STIMULATE THE York City, we must remember obesity crisis. Regulation is Democrats for losing the respect TO ADVERTISE: that Hispanic-owned businesses never a responsible substitute of his constituents. What has he Contact Advertising Director Trish Henry at ECONOMY? [email protected] or call 212-210-0711. will be hit particularly hard. for proper education. done to earn that respect back www.crainsnewyork.com/advertise Yes. The economy has stalled, There are 143,000 —javier palomarez other than sit atop a campaign unemployment has gone back up, and Hispanic-owned businesses in President and CEO war chest and threaten to FOR INFORMATION ON OUR EVENTS: Congress is sitting on its hands. New York City, making it home U.S. Hispanic become a spoiler in one of the Contact Event Producer Courtney Williams at to 74% of the state’s Hispanic- Chamber of Commerce most important elections in [email protected] or 212-210-0257. www.crainsnewyork.com/events No. The steps already taken by the Fed owned businesses. Mayor Washington, D.C. New York City’s history? haven’t helped much, and interest rates are Bloomberg’s ban on soda —karen casamassima TO CONTACT THE NEWSROOM: already low. servings larger than 16 ounces NOW IT’S WEINER’S CHEST 711 Third Ave., New York, NY 10017-4036 would impact locally owned editorial phone: 212.210.0277 fax 212.210.0799 Date of poll: July 25 HUNGRY FOR REVIEWS delis, restaurants, fast-food The $4.5 million in Anthony Entire contents ©copyright 2012 Crain Communications Inc. 245 votes establishments, movie theaters Weiner’s campaign chest I have been a Crain’s subscriber All rights reserved. ®CityBusiness is a registered trademark and food carts. Many of these should not be accessible to him, for many years, and I like the of MCP Inc., used under license agreement. small businesses rely on soda as and he should start paying his new format. However, I miss PUBLISHED BY CRAIN COMMUNICATIONS INC. a main revenue generator. own rent like everyone else in the restaurant reviews very chairman Keith E. Crain 60% Food-service establishments the Graybar Building. much, as they’ve always been president Rance Crain Yes overseen by the city are already Whoever is advising Mr. one of my first go-to’s, and I’m secretary Merrilee Crain subject to inspections, violations Weiner on a run for public a fan of both Bob Lape and treasurer Mary Kay Crain executive vp, operations William Morrow 40% and fines.These requirements, advocate or even mayor—given Gael Greene. I hope you will senior vp, group publisher Gloria Scoby No combined with the ban, will the disgraced congressman’s reconsider your decision to group vp, technology, circulation, make it increasingly difficult for exit from politics—might want eliminate the column, as the manufacturing Robert C. Adams these businesses to continue to to reconsider what’s best for publication just isn’t the same vp/production, manufacturing David Kamis operate. New York City Democrats. without it. chief information officer Paul Dalpiaz With 58% of New Yorkers It would be best if the —andrew rosenbaum founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

10 | Crain’s New York Business | July 30, 2012 20120730-NEWS--0011-NAT-CCI-CN_-- 7/26/2012 3:33 PM Page 1

lessly. Some of their adherents are survivalist, beware-the-black-heli- The right to bear copter types who so fundamentally distrust government as to be beyond the reach of reasonable discussion. appropriate arms But that leaves millions of peo- ple who could be persuaded by politicians willing to lead and to en- have never gone out in the woods or a duck blind to gage the public in a discussion of hunt. It has never held the slightest appeal for me. But what is at stake. They need to ask I have many friends who hunt and take great enjoyment why innocent men, women and children are dying.They need to re- from it. They are sportsmen, and I don’t think it would assure us that the right to bear ap- occur to them to acquire assault rifles with clips holding propriate arms should not be a hundred rounds of ammunition. They would never pretend abridged.They need to question the I alliance between the NRA and the that such weaponry has any relationship to their cherished gun makers.They need to appeal to right to hunt. Why does anyone in our country need assault our rational natures. A few have stepped forward in x weapons if they are not police the past week. Among them is May- officers? or Michael Bloomberg, who helped I was outraged when some of the organize a coalition called Mayors talking heads responding to the Au- Against Illegal Guns. It’s true, of rora massacre suggested that now is course, that Mr. Bloomberg faces a 2 the time to grieve, not to discuss our different political environment than gun policies. If not now, when the many elected officials elsewhere. senseless killing is fresh,then when? The NRA doesn’t hold much sway Can anyone deny that the ability to here; it can’t block the election of spew up to 60 bullets a minute en- those supporting controls of some abled James Holmes to kill and sort.But the mayor is pointedly call- LIFE wound as many people as he did? ing upon President Barack Obama Assault weapons and high- ALAIR TOWNSEND and his challenger, Mitt Romney, to capacity magazines were banned by do the same. “Soothing words are EXPECTANCY Congress in 1994.But when the law nice,” the mayor said of their re- expired in 2004 the gun-rights lob- Colorado. sponse to the massacre, “but maybe in New York City has grown by,led by the National Rifle Associ- The NRA has convinced many it’s time that the two people who ation, prevented its renewal. Every people that any restriction on their want to be president of the United politician who cowered in their right to buy and use guns is an in- States stand up and tell us what they twice as fast as the nation’s wake and continues to do so should fringement on their constitutional are going to do about it.” feel responsibility for the carnage in rights and should be fought relent- That would be leadership. since 2000, despite the obesity rate climbing faster the surge in purchasing power. The conservative Manhattan here. Minimum-wage Institute disagrees, saying the evi- dence is clear that increasing the wage floor leads employers to hire hike’s tricky balance fewer but more experienced work- ers and to take other steps to elimi- More fascinating data points nate jobs.It recently cited a study by hen the self-checkout scanners first arrived three economists that found that to use at your next business at Home Depot, I quickly learned how to between 2004 and 2008, when the state raised the minimum wage by use them. Waiting to pay at the home- $1.60 an hour to $6.75, employ- dinner will be featured in our improvement retailer is an unpredictable ment dropped by 20% for individu- and frequently frustrating experience. als ages 16 to 29 without a high- August 27th When they arrived at the regional supermarket chain near my school diploma. W Who is right? The truth is, econ- Stats and the City issue home, I was a bit more intimidated, unsure how to handle omists don’t know. There is no con- produce or bread without bar codes, but I overcame my worries sensus on the crucial question: Does the total income of all workers mak- and online at because checking out was often ing at or near the minimum wage ac- quicker.The benefit to the store was tually increase when the wage floor crainsnewyork.com/stats. obvious.One employee was assigned is raised? Economists also haven’t to supervise four stations, reducing traced what happens when business- the number of cashiers needed.Now es raise prices to compensate for the same system is in place at the higher wage costs and what happens smaller locally owned store where I when profits are squeezed or elimi- go when I need just a few items.I am nated if these companies can’t in- always in the self-pay line. crease their prices. The picture of those scanners Since the economists don’t really should remain in the forefront of have any answers, the checkout For advertising information, please any discussion about increasing the scanners lead me to two common- state’s minimum wage. Although sense conclusions,since I am certain contact Trish Henry at (212) 210-0711 the legislative session in Albany GREG DAVID the stores near my home will double ended without any action on a bill their self-service stations after any or [email protected]. from Assembly Democrats to hike wage hike. the minimum wage by almost 20%, Fiscal Policy Institute claims the Many people earning at or near to $8.50 an hour from $7.25 (and in- minimum-wage hike will dramati- the current minimum wage will re- dexing the wage to the inflation cally improve the income of about 1 ceive a boost in their income. It will rate), many political insiders say the million New Yorkers. If the state’s come at the cost of some jobs being Legislature will return before the wage floor were raised in three steps eliminated. November election to approve some to $10, the FPI calculates, 1.6 mil- The question to be answered is sort of increase. lion people would benefit and whether the cost outweighs the The liberal and union-funded 25,000 jobs would be created from gain.

July 30, 2012 | Crain’s New York Business | 11 20120730-NEWS--0012-NAT-CCI-CN_-- 7/26/2012 3:27 PM Page 1

SMALL BUSINESS Rent-a-desk scene is heating up As the number of co-working communities membership fee in a 4,700-square- working capital of the world, ac- foot location in lower Manhattan. cording to Carsten Foertsch, co- doubles, owners get creative to stand out “I wanted to build a place that was founder of online publication as much about people connecting to Deskmag, which covers the topic. er comrades who had been working each other as providing a work space,” Equal parts real estate solution BY ANNE FIELD from home. he said. With about 150 members, and social movement, these busi- In 2008, Mr. Bacigalupo co- the profitable one-employee compa- nesses provide both a place to work buck ennis ive years ago, Tony founded New Work City,a business ny has “under $1 million” in revenue, and the opportunity to share ideas, PRIVILEGES: At Marissa Feinberg’s Green Bacigalupo, a project tapping into the growing co-work- he said. expertise and gossip with fellow Spaces, members get dedicated desks. manager for a Web de- ing trend. It now provides desk Mr. Bacigalupo isn’t alone. With freelancers and startups seeking af- velopment firm, started space and access to events and dis- about 62 locations,up from 28 a year fordable space. The availability of stationing himself in cussion groups to professionals and ago, mostly in Manhattan and inexpensive laptops and mobile to work this way.“Fifteen years ago, Fcafés in Manhattan along with oth- artists for a $30- to $300-a-month Brooklyn, New York City is the co- technology makes it easy for clients you were trapped in a regular office,” said Mr. Foertsch. At the same time,however,turn- ing a co-working site into a prof- itable concern is difficult in New York. “Rents are pretty steep,” said Mr. Bacigalupo.There’s also poten- tial for oversaturation of the market. The bulk of revenue for most co- working sites come from member- ship fees,usually tiered and allowing different levels of access. Take 5- year-old, two-employee Green You want a global financial expert Spaces, a 6,000-square-foot Man- hattan site aimed at environmental with local expertise. and social entrepreneurs, according to co-founder Marissa Feinberg. Options include access to one of 45 dedicated desks that only its TIPS 150 members SELECT THE RIGHT can use for $550 NEIGHBORHOOD. a month. That means one Hosting fre- with many freelancers and quent events for startups. “People members and probably won’t nonmembers, as choose a place well as renting that’s an hour away,” said out the location Deskmag founder for film screen- Carsten Foertsch. ings and the like, OFFER DESK-FREE often provides MEMBERSHIP additional rev- RATES. Some enue. Green people may want to take part in Spaces rents out workshops and its site on week- participate in the ends to groups community, and offering pro- not use the space grams on such for work. topics as how to run a sustainable business. Speakers and other professionals also pay to use the location after-hours for workshops. It’s also starting to sell $50 monthly memberships, offering access to an unlimited number of events. Such activities contribute 20% to When you team with Union Bank,® you’ll experience the strength of a powerful financial partner working on your behalf. 30% of revenue,which are “under $1 Through our relationship with Mitsubishi UFJ Financial Group, we can seamlessly deliver the global resources you need million,”according to Ms.Feinberg, whose company is profitable. to access financing, mitigate risk and manage your working capital. And you’ll receive the insight and guidance of local Holding gatherings also helps experts in over 40 countries. That’s the benefit of a bank immersed in your business. create a sense of community, a key to running a thriving space,said Mr. With Union Bank, the world can be an easy place to do business. Call us today. Foertsch.To help his members con- nect, Nick Robalik, founder of Corporate & Institutional Treasury Services: Fund Finance: Commercial Finance: Bitmap Creative Labs, a 2,500- Marla Feldman Douglas St. Amant Terence Hatton Richard K. Stang square-foot space in Williamsburg Vice President Vice President Senior Vice President Senior Vice President aimed at architects, graphic design- 914-273-0351 646-452-2523 646-452-2113 646-452-2522 ers and the like, also usually assigns desks so that people in complemen- tary professions are neighbors. “We encourage collaboration,” said Mr. Robalik, whose company, with “less than $1 million in rev- ©2012 Union Bank, N.A. All rights reserved. enues,” is breaking even. Ⅲ Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG), one of the world’s largest financial organizations. unionbank.com To sign up for Crain’s SMALL BUSINESS newsletter, go to www.crainsnewyork.com/smallbiz.

12 | Crain’s New York Business | July 30, 2012 20120730-NEWS--0013-NAT-CCI-CN_-- 7/26/2012 3:28 PM Page 1

CORPORATE FINANCE INSIDE Spotlight What’s hot in CFO compensation? Performance-based stock PAGE 15 The List The highest-paid chief financial REPORT officers in the New York area PAGE 15 It all adds up to higher CFO pay Base salaries and performance awards on the rise; cash bonuses down

BY DIANE HESS

New York-area chief financial of- ficers are expected to make more money in 2012 than they did a year ago. Advisers on executive pay pre- dict that CFOs at public and pri- vate companies could earn 5% to 10% more this year than they did in 2011, as the economy stabilizes and they continue to play a crucial role, not only as financial book- keepers but also as corporate strategists and intermediaries. MAKING PLANS: Players in the startup arena, such “It’s not just about being the as Near Earth’s Ian comptroller anymore; CFOs are Fichtenbaum, are at the intersection of sharehold- beginning to plot out how ers, boards, ratings agencies and they might benefit from the press,” said Alan Johnson, equity crowd funding. managing director of Johnson Associates, a boutique compen- sation consulting firm.“You have to be a renaissance person, multi- faceted.” One effect of the finan- cial crisis has 70% been an effort PORTION of S&P 500 CFOs who by companies received stock to respond to options in 2011 the public david junkin david outcry over outsized bonuses, while still tying compensation to company performance. Public companies in particu- lar—subject to new proxy disclo- sure rules and shareholder “say on pay” votes—have been aligning Funding draws a crowd executive pay with individual and company performance. company that builds research labs for THE SOURCE alike. Others say crowd funding pos- On Wall Street, Mr. Johnson New law will allow the International Space Station. Near es a stiff challenge to venture capital said, “CFO is a seven-figure job,” startups to raise cash Earth Vice President Ian Fichten- Companies can sell firms, which have had free rein over but added that “at least half of that baum likened the process to “hitting investors the greater of startups. amount is in restricted stock or op- without help of at the back of a ketchup bottle.” “They’d better recognize that tions, which tie you to the firm.” But help for firms like NanoRacks they’ve got to reinvent themselves,” Still, base salaries for public venture capital firms may be on the way in the form of a new $2,000 said Cliff Schorer, who is entrepre- companies are on the rise, as are law that will allow small firms to offer or stock equal to neur in residence at Columbia Busi- performance-based equity awards, BY STEVE GARMHAUSEN equity through crowd funding. The ness School’s Eugene Lang Entrepre- while cash bonuses have fallen. law has yet to go into effect—it awaits 5% neurship Center. According to a nationwide survey It’s no surprise that space and satellite Securities and Exchange Commis- of investors’ income The Jumpstart Our Business by the Financial Executives Re- ventures have a tough time raising sion rule making—but it has already or net worth if their Startups Act of 2012, which became search Foundation, sponsored by money. Last year, Manhattan-based spawned a fierce debate about likely income or net worth law in April, will allow small compa- compensation advisory firm Grant boutique investment bank Near winners and losers. Some warn that is less than nies to advertise and sell up to $1 mil- Thornton, the average base salary Earth, which caters to the industry, fraud and administrative headaches lion a year in private stock online to in 2012 is $286,500 for public tried to raise capital for NanoRacks, a will hurt investors and businesses $100,000 See DRAWING on Page 14 See IT ADDS UP on Page 14

July 30, 2012 | Crain’s New York Business | 13 20120730-NEWS--0014-NAT-CCI-CN_-- 7/26/2012 3:31 PM Page 1

REPORT CORPORATE FINANCE

guessed by them—will turn off that the rules will either make it too the end of the day, they’re going to many entrepreneurs, not to men- tough to raise money or so easy that look for guidance about who’s do- Drawing a crowd tion VCs, when the entrepreneurs anyone can raise money.” ing something real, who they can attempt to attract later rounds of Meanwhile, players in the start- trust and who’s effective to invest Continued from Page 13 ty to test ideas and products VCs traditional funding. Unsophisti- up arena, such as Near Earth’s Mr. their money with,” said Mr. Ficht- hundreds of investors—and with and angels are reluctant to fund. cated investors are more likely to Fichtenbaum, are beginning to plot enbaum. less red tape and regulation than “This opens up another channel buy shares based on exaggerated out how they might benefit from eq- Second Market,a New York firm apply to big companies. of funding for entrepreneurs,” said valuations, the argument goes. To uity crowd funding. Near Earth is that provides a platform for trading Until now, crowd funding, at Mr. Schorer.“Entrepreneurs are the invest in a later round, more savvy thinking about ways to offer advice illiquid assets, including private least in the United States, has been winners.” angels or venture capitalists would and guidance to small investors. It stock, is keeping tabs on crowd exclusively an exercise in philan- insist on lowering the valuation— may create its own service or partner funding developments as well, said thropy.A growing group of websites A threat to VCs which would incur the wrath of the with other firms to do so,Mr.Ficht- Managing Director Adam Oliveri. are collecting money from the pub- At the same time, it could mean original shareholders. They argue, enbaum said. “We smell opportunity for sure,” lic to help artists, inventors, film- more competition for VCs, which too, that entrepreneurs who work “People will be excited, but at he said. Ⅲ makers and others realize their are already struggling to produce with amateur investors will miss dreams—with donors receiving attractive returns for investors, ac- out on the advice, networking op- public recognition or nominal gifts cording to a recent Kauffman Foun- portunities and tough love provid- in return. But it has been illegal to dation report. ed by VCs and angels, not to men- CFO PAY PRACTICES solicit equity investments from a Fred Wilson, managing partner tion the stamp of approval a Based on a 2012 survey of CFOs at S&P 500 companies. population of unqualified investors at Union Square Ventures, recently venture investment confers. with less than $1 million in assets told a group of entrepreneurs that “They give you a huge amount of 2010 2011 who were not friends or family.That venture capital has been shifting help finding top talent,” said Bruce has changed with the JOBS Act, a from an industry skewed to favor in- Bachenheimer, director of the en- Median total compensation $2.8 million $3.1 million measure pushed by entrepreneurs vestors to one that favors entrepre- trepreneurship program at Pace Median cash bonus $695,971 $648,784 and small business groups and neurs—and will only become more University’s Lubin School of Busi- passed by a Congress desperate to so. Equity crowd funding, he said, is ness. “[With crowd funders] if any- Stock options 68.3% 70.1% create jobs. “bad news for the venture capital in- thing, you’ll spend all day on the Restricted stock 66.0% 63.0% At the same time, evolving tech- dustry, but terrific news for the en- phone with Aunt Jenny.” nology and the vast reach of the In- trepreneurs.” Performance-related shares 57.4% 64.2% ternet have made crowd funding Other VCs and angel investors, Risks involved Percentages represent CFOs who received these awards. Source: Equilar feasible.The cost of launching tech- though, insist crowd funding is not Under the current system, a tiny nology companies, which typically a threat. “Equity crowd funding number of the best startups receive are the bull’s-eye for angel investors wasn’t designed for the types of backing, and even then many of It adds up to more pay and venture capital firms, has fallen businesses angels and VCs are inter- them fail. Crowd-funding skeptics rapidly in recent years. Because ested in,” said David Rose, an angel argue that opening a funding spigot startups can now develop clout with investor and entrepreneur who for companies the experts have Continued from Page 13 “At these levels, people show up a couple hundred thousand dollars founded Gust, an online platform passed over will do little more than company CFOs, up 3.2% from a year on the list because of unique circum- rather than many millions, it’s easi- that brings entrepreneurs together fund failures and potentially weak- earlier. stances, such as a one-time award er for them to sidestep venture cap- with investors. “Nobody’s really en investor protections. “As the economy starts to get for joining or extending an agree- ital firms and angel investor groups concerned.” “[The SEC’s] problem is how we better, companies have to make sure ment,” said Mr. Boyd of Equilar, altogether. They also question crowd fund- weed out the Tokyo Joes and the they’re paying competitively,” said which compiled the CFO data, Indeed, supporters say equity ing’s viability,predicting, for exam- Nigerian royal family from crowd Ken Cameron, director of compen- adding that they’re unlikely to make crowd funding signals a new era for ple, that communicating with funding,” said Joseph Bartlett, a sation and benefits consulting at that much next year. entrepreneurs,giving them access to hundreds of mom-and-pop in- lawyer with Sullivan & Worcester Grant Thornton. “You’re seeing new sources of capital and the abili- vestors—and being second- who advises startups. “The fear is other ways of rewarding CFOs to On the private front retain them.” Times are also good for some pri- Equilar, an executive compensa- vate-company CFOs as well.Dennis tion data firm, found that median Bogart, CFO of Paige Management cash bonus pay in 2011 for S&P 500 Group,an operations and hospitality CRAIN’S Business Breakfast Forum: CFOs dropped to $648,784, down company, is expected to earn 15% 6.8% from 2010’s bonus level. But more than in 2011, according to other forms of performance-based CEO Matt Shendell, as consumer pay inched up. Sixty-four percent of spending rebounds.Mr.Shendell re- Meet S&P 500 CFOs received perform- cently opened two new venues, ance-based equity,up 7% from 2010. Windsor Custom, a clothing center Reversing a trend of previous years, in Chelsea, and the Southampton Joseph Lhota when companies moved away from Social Club in the Hamptons. granting stock options, 70.1% of “Dennis did a great job driving us S&P 500 CFOs received stock op- through the financial storm,” said CHAIRMAN AND CEO, MTA tions in 2011, the study shows, up Mr. Shendell. “He helped stream- about 2 percentage points from 2010. line the business and made sugges- Join Crain’s New York Business for a “By diversifying equity awards, tions that prepared us to do well DATE: discussion with Joseph Lhota, Chairman rather than using a single vehicle, when the economy turned around.” Wednesday companies minimize risk,” said In 2012, some New York public and CEO, Metropolitan Transportation September 12, 2012 Aaron Boyd, director of research at companies revised their executive Authority (MTA). Mr. Lhota will discuss the Equilar. “They’re also able to find a compensation plans to address ad- PLACE: mix that complements the culture verse ‘say on pay’ shareholder votes. MTA’s mounting debt, the upcoming fare The Plaza they’re trying to set.” Among them, Navigant Consulting hike and his plans to upgrade the nation’s 768 5th Avenue got only a 45% favorable vote in 2011 One-time award but achieved 94% in 2012,with plans largest transit system. He will be TIME: Other events can also result in a that better matched executive pay questioned by Crain’s Assistant Managing Networking Breakfast: pay bump. Last year, for example, with performance and linked future 8:00 - 8:30AM Editor Erik Engquist and another journalist the highest-paid CFO in New York equity awards for its CEO to per- Program: City was Sirius Satellite’s David formance standards.It also eliminat- from the media. 8:30 - 9:30AM Frear, who earned almost $21 mil- ed an objectionable provision that lion. The total includes, however, a would have paid its CEO severance one-time $19 million options award if he left the company voluntarily at SPONSORED BY: COST TO ATTEND: in connection with the renewal of the end of his contract term. Vorna- $95 for individual ticket(s). Mr.Frear’s employment contract.In do Trust and L-3 Communications $950 for table(s) of ten (10). previous years, his compensation also made changes in 2012 to allevi- You must be pre-registered to attend this event. No refunds permitted. Pre-register online by going was around $3 million. ate shareholder concerns. to crainsnewyork.com/events. For more information, call the Events Hotline at 212-210-0739. David DeVoe of News Corp. “Companies that get a strong REGISTER HERE: www.crainsnewyork.com/events-jlhota took in more than $17.5 million in message from shareholders are gen- HOST SPONSOR: 2011, when he, too, extended his erally being responsive,” says Carol employment term with his compa- Bowie, head of research for the ny, putting him in second place. In Americas at Institutional Share- For sponsorship opportunities, please contact Trish Henry at 212-210-0711 or prior years, Mr. DeVoe had earned holder Services, an independent [email protected] $7 million to $8 million. proxy advisory firm. Ⅲ

14 | Crain’s New York Business | July 30, 2012 20120730-NEWS--0015-NAT-CCI-CN_-- 7/26/2012 3:29 PM Page 1

NEXT WEEK: THE NY Area’s Highest-Paid CFOs Play ball! The region’s top professional LIST Ranked by 2011 compensation sports teams THE SCOOP TRENDS SPOTLIGHT

Total compensation hile aggregate total compensation for the for the highest-paid MORE STOCK REWARDS executives on Crain’s list of the highest-paid CFOs CFOs was down in 2011, compared with TIED TO PERFORMANCE the previous year, their median total com- -10.3% pensation outpaced 2010 pay. A GROWING NUMBER OF COMPANIES are giving out WAt just over $7 million,their median total compensation was performance-based stock as they improve pay practices and 15.5% higher than 2010’s $6.1 million, notwithstanding the $251.3M link compensation with individual and company success. fact that six of their firms saw net income drop and 11 had neg- According to Equilar research, 64.2% of S&P 500 CFOs ative one-year shareholder returns last year. $225.4M received performance shares in 2011, up from 57.4% a year One subset of the Crain’s list, CFOs of New York’s belea- earlier. Experts predict the trend will continue. guered banks and investment banks, however, saw median to- “The biggest driver of CFO pay is equity, and companies tal compensation drop 12%, from $12.6 million in 2010 to newscom increasingly are implementing performance-based stock as a MARK LOUGHRIDGE of IBM $11.1 million in 2011. On the whole, the top 25 outpaced the primary incentive, instead of time-based rewards,” said Aaron 10.7% growth last year in median total CFO compensation in Boyd of Equilar. a survey of S&P 500 companies. On the list of top earners locally, David DeVoe received $2.8 million, or two-thirds of his 2011 equity The median salary, on the other hand, was down last year bonus, in performance-based shares. This excluded a one-time $5.3 million award for extending his about 9% from 2010 levels, to $750,000. In many cases, a employment contract. hefty chunk of compensation took the form of equity, and 23 In 2010, News Corp. said that going forward it would tie CFO stock bonuses to the company’s of the 25 CFOs on the list received shares and/or options. financial and operating performance. The metrics that go into the calculation include earnings-per-share The median stock award was valued at $3.5 million, slightly growth, free cash-flow growth and total shareholder return. more than in 2010, when the median award was just over At another New York-area company, IBM, Mark Loughridge, ranked 17th on the list, last year took $3.4 million. Still, even as companies are moving to more long-term, per- home a $4.09 million stock grant, all of it performance-related. According to its proxy statement, the technology giant looked at cash-flow growth and earnings-per-share growth. The year before, Mr. formance-based awards, they continue to hand out cash bonus- 2010 2011 es. In 2011, 13 of the top 25 compensated CFOs on the Crain’s Loughridge received $3.57 million in performance shares. list—versus 10 in 2010—received bonuses, ranging from a high Meanwhile, Francis Shammo at Verizon Communications, the 23rd highest-paid CFO, earned $2.1 of $12.75 million for Kathryn Fagan of Annaly Capital Man- million in 2011 in performance shares, or 60% of his $3.5 million equity bonus. A year earlier, he earned agement to a low of $42,400 for Martina T.Hund-Mejean of $1.6 million in performance shares, which are given out based on total shareholder return rates among MasterCard Inc., the 25th highest-paid CFO. a peer group over a three-year period. The median bonus for CFOs on the 2011 list was $3 “So much more is in the public eye, and companies want to make sure that the pay/performance million, down from $3.8 million in 2010, a decline of about 52.7Average age alignment is there,” said Kelly Malafis, a partner at Compensation Advisory Partners, an executive- 20%. Nationally, cash bonuses declined 6.8% last year. of the CFOs compensation consulting firm. “They are willing to pay when the performance is there, and they’re willing —judith messina Data are for top 25 CFOs. to pull back when the objectives are not being met.” —DIANE HESS

Company Executive (figures in thousands) 2011 revenue 2011 net income Total Salary/ Nonequity Stock awards/ Other (in millions)/ (in millions)/ One-year Executive (age)/ compensation bonus incentive plan option awards compensation % change % change shareholder Rank company (ticker) in 2011 in 2011 in 2011 in 2011 in 2011 from 2010 from 2010 return David J. Frear (55) $20,798.7 $795.8 $0.0 $0.0 $7.4 $3,014.5 $427.0 +11.7% 1 Sirius Satellite Radio Inc. (SIRI) $1,100.0 $18,895.6 +7.0% +891.7% David F. DeVoe (64) $17,576.4 $2,853.8 $0.0 $9,511.4 $211.2 $33,405.0 $2,739.0 +49.2% 2 News Corp. (NWSA) $5,000.0 $0.0 +1.9% +7.9% David A. Viniar (56) $15,803.4 $1,850.0 $0.0 $10,710.1 $243.3 $36,793.0 $4,442.0 -45.4% 3 Goldman Sachs Group Inc. (GS) $3,000.0 $0.0 -20.0% -46.8% Kathryn F. Fagan (45) $13,960.0 $1,200.0 $0.0 $0.0 $10.0 $3,817.5 $344.5 +2.7% 4 Annaly Capital Management Inc. (NLY) $12,750.0 $0.0 +29.2% +72.8% Joseph R. Ianniello (44) $11,774.5 $1,500.0 $0.0 $1,800.0 $174.9 $14,245.0 $1,305.0 +44.3% 5 CBS Corp. (CBS) $7,100.0 $1,199.7 +1.3% +80.2% John K. Martin Jr. (44) $11,449.9 $1,600.0 $6,552.0 $1,991.9 $38.9 $28,974.0 $2,886.0 +15.3% 6 Time Warner Inc. (TWX) $0.0 $1,267.1 +7.8% +11.9% Douglas L. Braunstein (50) $11,397.7 $720.8 $0.0 $5,760.0 $0.0 $110,838.0 $18,976.0 -19.7% 7 JPMorgan Chase & Co. ( JPM) $2,900.0 $2,016.9 -4.0% +9.2% Ruth Porat (54) $11,132.0 $750.0 $0.0 $5,667.1 $14.9 $39,310.0 $4,110.0 -43.7% 8 Morgan Stanley (MS) $3,200.0 $1,500.0 +4.0% -12.6% Hermann G. Waldemer1 (54) $9,864.7 $1,263.2 $4,200.0 $4,358.4 $43.2 $76,346.0 $8,591.0 +38.9% 9 Philip Morris International (PM) $0.0 $0.0 +12.7% +18.3% Lee Shavel2 (45) $8,003.9 $300.03 $1,290.0 $6,120.0 $13.8 $3,438.0 $387.0 +3.3% 10 Nasdaq OMX Group Inc. (NDAQ) $0.0 $280.0 +7.5% +2% Randall J. Weisenburger (53) $7,971.1 $975.0 $6,902.4 $0.04 $93.7 $13,872.5 $952.6 -0.5% 11 Omnicom Group Inc. (OMC) $0.0 $0.0 +10.6% +15.1% Daniel T. Henry (62) $7,454.3 $850.0 $1,320.0 $1,358.1 $384.4 $32,282.0 $4,935.0 +11.6% 12 American Express Co. (AXP) $3,050.0 $491.8 +7.6% +21.6% John C. Gerspach (58) $7,087.9 $500.0 $0.0 $2,333.3 $14.7 $102,587.0 $11,067.0 -44.3% 13 Citigroup Inc. (C) $2,200.0 $2,039.8 -8.2% +4.4% Frank A. D'Amelio (54) $6,705.9 $1,200.0 $1,440.0 $2,046.3 $187.4 $67,425.0 $10,009.0 +28.2% 14 Pfizer Inc. (PFE) $0.0 $1,832.2 +0.5% +21.2% Thomas J. McInerney (47) $6,691.4 $650.0 $0.0 $0.0 $7.4 $2,059.4 $174.2 +48.9% 15 IAC/InterActiveCorp (IACI) $2,500.0 $3,534.0 +25.8% +75.4% Compensation and shareholder return data provided by Equilar Inc., www.equilar.com. Company data provided by Compustat, www.compustat.com, and Capital IQ, www.capitaliq.com. Additional research by Suzanne Panara and Tina Brutten. New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Executives may have additional titles. Executives’ ages are derived from information in company proxy statements and may not reflect recent birthdays. Base salaries are taken from the Summary Compensation Table and are not annualized for executives employed for less than a full fiscal year. All financial data derived from the most recent 10-K’s available as of April 30, 2012. The most recent data for companies with fiscal years ending in March through December are for the year ended in 2011. Compensation data are derived from filings available from the SEC as of April 30, 2012. Compensation and financial figures have been rounded to one decimal place. Total compensation represents sum of base salary, bonus, nonequity incentive plan, grant date fair value of option and stock awards, and other compensation. Salary may be paid for a full or partial year, if employment commenced during the year. Nonequity incentive plan represents cash awards earned in connection with short- and long-term incentive plan awards given in the past year. Stock and option awards represent the aggregate grant date fair value of service- and performance-based option awards given in the past year. Other compensation represents the value of benefits and perquisites given in the past year. One-year shareholder return represents the change in stock price plus any dividends paid over the most recent fiscal year. 1-Mr. Waldemer will leave the company on July 31, 2012. 2-Mr. Shavel was hired on May 23, 2011. 3-Not annualized. 4-Excludes performance-based restricted stock units with a value of $2,958,187 granted in fiscal 2012 based on performance in 2011. PURCHASE THE FULL LIST OF THE NY AREA'S HIGHEST-PAID CFOs @ WWW.CRAINSNEWYORK.COM/LISTS

July 30, 2012 | Crain’s New York Business | 15 nb31p16-18cl.qxp 7/27/2012 1:17 PM Page 16

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM REAL ESTATE PUBLIC & LEGAL NOTICES NOTICE OF FORMATION OF LIMITED Notice of Qualification of Alpha DD Notice of Qualification of Vital Support NOTICE OF FORMATION OF COMMERCIAL LIABILITY COMPANY. NAME: JUST BE LLC. App for Authority filed with Systems, L.L.C. Authority filed with Investment Business Advisors, LLC. FAIR, LLC. Articles of Organization Secy of State of NY (SSNY) on NY Dept. of State on 6/11/12. Office Authority filed w/ Secy of State of NY Hudson Valley of NYS were filed with the Secretary of State 6/11/12. Office location: NY County. location: NY County. LLC formed in (SSNY) on 4/6/12. Office Location: 1)Silicon Alley North, 100K SF Data Center M. North Train 2)Mill Building Conversion, Flats, Retail, Townhomes of New York (SSNY) on 07/18/12. LLC formed in DE on 6/5/12. SSNY IA on 4/18/01. NY Sec. of State NY Co. LLC formed in D.C on 3)Hudson River Front, Residential, Industrial, Recreation Office location: New York County. designated agent upon whom designated agent of LLC upon whom 3/21/11. SSNY designated agent 4)Pawling, NY 50K SF/2.7 Acres Showroom, Warehouse 5)Cold Spring, NY / Restaurant / Bistro / Office SSNY has been designated as agent process may be served and shall process against it may be served and upon whom process may be served 6)Metro North Train Stop Live/Work Artist/Service of the LLC upon whom process mail copy of process against LLC to shall mail process to: c/o CT and shall mail copy of process 7)Investment Properties, off market deals 8)Development Sites, Apts, Retail, Office, Flex against it may be served. SSNY shall business address: P.O. Box 4668, Corporation System, 111 8th Ave., NY, against LLC to principal business [email protected] mail a copy of process to the LLC, #90536, NY, NY 10163. DE address NY 10011, regd. agent upon whom address: Paul A. Ehrhardt, 3552 www.crproperties.com 845 485-3100 152 Madison Avenue, 21st Floor, of LLC: 1675 So State St., Ste B, process may be served. IA and Reservoir Rd, NW, Washington DC New York, New York 10016. Dover, DE 19901. Cert of LLC filed principal business addr.: 11191 20007. Arts of Org of LLC filed w/ Purpose: For any lawful purpose. with Secy of State of DE located: Aurora Ave., Urbandale, IA 50322. Patricia E. Grays, Superintendent of P.O. Box 898, Dover, DE 19901. Cert. of Org. filed with IA Sec. of State, Corps located: Dept of Consumer PUBLIC & POST STUDIO 4A, LLC, Arts. of Org. Purpose: any lawful activity. 321 E. 12th St., Des Moines, IA and Regulatory Affairs, Corps filed with the SSNY on 07/03/2012. 50319. Purpose: all lawful purposes. Division, PO Box 92300, Washington LEGAL NOTICES Office loc: NY County. SSNY has been Notice of Formation of 70045 Holdings DC 20090. Purpose: any lawful act. designated as agent upon whom LLC. Arts. of Org. filed with NY Dept. FRANCINE WOLTERBEEK LLC, a Notice of Qualification of Citadel process against the LLC may be of State on 3/28/12. Office location: domestic LLC. Arts. of Org. filed with Notice of Qualification of Brand Risk Securities Global Trading LLC. served. SSNY shall mail process to: NY County. Sec. of State designated the SSNY on 06/04/2012. Office Management, LLC. App for Authority filed with NY Dept. of State 508 West 26th St. #7A, NY, NY 10001. agent of LLC upon whom process location: NY County. SSNY has been Authority filed with Secy of State of on 7/17/12. Office location: NY Reg Agent: Andrew Zuckerman, 508 against it may be served and shall mail designated as agent upon whom NY (SSNY) on 6/5/12. Office County. Princ. bus. addr.: 131 S. West 26th St. #7A, NY, NY 10001. process to the principal business addr.: process against the LLC may be Location: NY County. LLC formed in Dearborn St., Chicago, IL 60603. LLC Purpose: Any Lawful Purpose. c/o The Community Preservation Corp., served. SSNY shall mail process to: MO on 3/5/10. SSNY designated formed in DE on 6/29/12. NY Sec. of 28 E. 28th St., 9th Fl., NY, NY 10016. 200 West 16th St, 5K, NY, NY 10011. agent upon whom process may be State designated agent of LLC upon NOTICE OF FORMATION OF Rich Purpose: any lawful activity. Purpose: Any Lawful Purpose. served and shall mail copy of whom process against it may be Devices LLC. Arts of Org filed with process against LLC to principal served and shall mail process to: c/o Secy of State of NY (SSNY) on TIGHT CONTRACTING, LLC, a Notice of Qualification of Jamaica business address: 16090 Swingley CT Corporation System, 111 8th Ave., 7/6/11. Office location: NY County. domestic LLC. Arts. of Org. filed with Asset Management LLC. Authority Ridge Rd, Ste 400, Chesterfield, MO NY, NY 10011, regd. agent upon whom SSNY designated as agent upon the SSNY on 06/21/2012. Office filed with NY Dept. of State on 63017. Cert of LLC filed with Secy of process may be served. DE addr. of whom process may be served and location: NY County. SSNY has been 6/28/12. Office location: NY County. State of MO located: 600 West Main LLC: The Corporation Trust Co., 1209 shall mail copy of process against designated as agent upon whom LLC formed in DE on 10/4/10. NY St, Jefferson City, MO 65101. Orange St., Wilmington, DE 19801. LLC to principal business address: process against the LLC may be Sec. of State designated agent of Purpose: any lawful act. Cert. of Form. filed with DE Sec. of 519 W 23rd St, PHA, NY, NY10011. served. SSNY shall mail process to: LLC upon whom process against it State, 401 Federal St., Dover, DE Purpose: any lawful act. Michael Marrone, 1221 6th Ave., NY, may be served and shall mail Name of LLC: San Holdings LLC. Arts. 19901. Purpose: all lawful purposes. NY 10020. Purpose: Any Lawful process to: c/o CT Corporation of Org. filed with NY Dept. of State: Notice of Formation of WHITE OAK Purpose. System, 111 8th Ave., NY, NY 10011, 2/21/12. Office loc.: NY Co. Sec. of Notice of Qualification of MEHETIA SECURITIES LLC. Arts. of Org. filed regd. agent upon whom process may State designated agent of LLC upon SUB 1 LLC. Authority filed with Secy. with Secy. of State of NY (SSNY) on NOTICE OF FORMATION OF Kenyon be served. DE addr. of LLC: 1209 whom process against it may be of State of NY (SSNY) on 06/21/12. 07/17/12. Office location: NY County. Capital Investment Holdings, LLC. Arts Orange St., Wilmington, DE 19801. served and shall mail process to: c/o Office location: NY County. LLC SSNY designated as agent of LLC of Org filed with Secy of State of NY Cert. of Form. filed with DE Sec. of Business Filings Inc., 187 Wolf Rd., formed in Delaware (DE) on 06/19/12. upon whom process against it may (SSNY) on 3/26/12. Office location: NY State, 401 Federal St., Dover, DE Ste. 101, Albany, NY 12205, regd. agt. Princ. office of LLC: 11 Madison Ave., be served. SSNY shall mail process County. SSNY designated as agent 19901. Purpose: all lawful purposes. upon whom process may be served. to c/o Robert P. Wessely, Esq., upon whom process may be served NY, NY 10010-3629. SSNY designated Notice of formation of Evergreene Purpose: any lawful act. as agent of LLC upon whom process Withers Bergman LLP, 430 Park Ave., and shall mail copy of process 10th Fl., NY, NY 10022. Purpose: Any against LLC to principal business Music LLC. Arts of Org filed with against it may be served. SSNY shall Secy of State of NY (SSNY) on Notice of Registration of Richard Cook mail process to c/o Corporation lawful activity. address: 142 Duane St; Unit 4B; NY, Design, LLC. Cert. of Registration NY 10013. Purpose: any lawful act. 5/11/12. Office location: NY County. Service Co., 80 State St., Albany, NY SSNY designated as agent upon filed with Secy. of State of NY (SSNY) 12207-2543. DE addr. of LLC: 2711 FAIR FOLKS AND A GOAT, LLC App. Notice of Formation of Wall Street whom process against the LLC may on 4/26/12. Office loc.: New York Centerville Rd., Wilmington, DE 19808. for Auth. filed NY Sec. of State (SSNY) Mobile Development LLC. Arts. of Org. be served. SSNY shall mail process Co. SSNY designated as agent of Arts. of Org. filed with Secy. of State, 10/1/2009. LLC was organized in DE filed with Secy. of State of NY (SSNY) to 450 W 31st St, NY, NY 10001. partnership upon whom process 401 Federal St., Dover, DE 19901. on 9/1/2009. Office in NY County. on 4/23/12. Off. loc.: NY County. General purposes. against it may be served. SSNY shall Purpose: Any lawful activity. SSNY is desig. as agent of LLC upon mail process to The LLC, 641 whom process may be served. SSNY SSNY designated as agent of LLC upon whom process against it may NOTICE OF FORMATION of Avenue of the Americas, 8th Floor, Notice of Formation of SWISS SPOON to mail copy of process to 7 E. 88th Pineapple Developments, LLC Art. New York, NY 10011. Profession to St., NY, NY 10128. Required office at be served. SSNY shall mail process LLC; Articles of Organization filed to: Annaline Dinkelmann, 382 Central of Org filed Sec’y of State (SSNY) be practiced by LLC: Law. with Secretary of State of New York 3500 S. DuPont Hwy., Dover, DE 6/20/12. Office location: New York 19901 Cert. of Formation filed with Park West, Ste. 7V, NY, NY 10025. (SSNY) on 04/20/2012. Office location: Purpose: any lawful activity. County. SSNY designated as agent of Notice of Qualification of Digital Risk NY County. SSNY has been designated Jeffrey W. Bullock, Sec. of State, 401 LLC upon whom process against it Mortgage Services, LLC. Authority as an agent upon whom process Federal St., #4, Dover, DE 19901. Notice of Formation of JENED may be served. SSNY shall mail copy filed with NY Dept. of State on against the LLC may be served. The Purpose: Any lawful purpose. PRODUCTIONS LLC. Arts. of Org. of process to David Wrobel, Esq., 6/20/12. Office location: NY County. address to which SSNY shall mail a filed with Secy. of State of NY Wrobel & Schatz LLP, 1040 Avenue of LLC formed in DE on 11/13/09. NY Notice of Formation of BVM TRIBECA copy of any process against the LLC (SSNY) on 5/10/12. Office location: the Americas, 11th Floor, New York, NY Sec. of State designated agent of LLC LLC. Arts. of Org. filed with Secy. of is to: US Corporation Agents, Inc. NY County. SSNY designated as 10018. Purpose: any lawful activities. upon whom process against it may be State of NY (SSNY) on 06/08/12. 7014, 13th Ave, Suite 202, Brklyn, agent of LLC upon whom process served and shall mail process to the Office location: NY County. SSNY NY, NY 11228. Principal business against it may be served. SSNY Notice of Qualification of ARC principal business addr.: 2301 designated as agent of LLC upon address: Fl 20, 45 Rockefeller Plaza, shall mail process to: The LLC, 312 NYW42ST002, LLC. Authority filed Maitland Center Pkwy., Ste. 165, whom process against it may be NY 10111. Purpose: To engage in W. 23rd St., #4U, NY, NY 10011. with Secy. of State of NY (SSNY) on Maitland, FL 32751. DE addr. of LLC: served. SSNY shall mail process to any lawful act or activity. Purpose: any lawful activity. 06/19/12. Office location: NY County. 615 S. DuPont Hwy., Dover, DE Pavia & Harcourt LLP, Attn: Giovanni LLC formed in Delaware (DE) on 19901. Cert. of Form. filed with DE Sec. NOTICE OF FORMATION OF ZWILLGEN Spinelli, Esq., 590 Madison Ave., Notice of Formation of Richman 38th 02/27/12. Princ. office of LLC: 106 of State, 401 Federal St., Dover, DE PLLC. Authority filed w/ Sec’y of 8th Fl., NY, NY 10022. Purpose: Any Street Division LLC. Arts. of Org. York Rd., Jenkintown, PA 19046. 19901. Purpose: all lawful purposes. State of NY (SSNY) on 6/5/12. Office lawful activity. filed with NY Dept. of State on SSNY designated as agent of LLC Location: NY Co. PLLC formed in 6/4/12. Office location: NY County. upon whom process against it may be MERCHANT HOUSE HOSPITALITY Washington, DC on 7/1/11. SSNY NOTICE OF FORMATION OF Blasius Princ. bus. addr.: 340 Pemberwick served. SSNY shall mail process to LLC, a domestic LLC currently known designated agent upon whom process Media & Marketing, LLC. Arts of Org Rd., Greenwich, CT 06831. Sec. of c/o CSC, 80 State St., 6th Fl., Albany, as Merchant Hospitality Group LLC, may be served and shall mail copy of filed with Secy of State of NY (SSNY) State designated agent of LLC upon NY 12207. DE addr. of LLC: 2711 Arts. of Org. filed with the SSNY on process against PLLC to prncpl bus. on 4/23/12. Office location: NY whom process against it may be Centerville Rd., Ste. 400, Wilmington, 6/13/12. Office location: New York address: 1705 N St. NW, Washington, County. SSNY designated as agent served and shall mail process to: c/o DE 19808. Arts. of Org. filed with DE County. SSNY is designated as DC 20036. Arts of Org filed w/ Patricia upon whom process may be served CT Corporation System, 111 8th Secy. of State, Div. of Corps., 401 agent upon whom process against E. Grays, Superintendent of Corps, and shall mail copy of process Ave., NY, NY 10011, regd. agent Federal St., Ste. 4, Dover, DE 19901. the LLC may be served. SSNY shall Dept of Consumer & Regulatory against LLC to principal business upon whom process may be served. Purpose: Any lawful activity. mail process to: Mark Zeff, 515 West Affairs, PO Box 92300, Washington, address: 133 W Broadway, Ste 3, NY, Purpose: any lawful activity. 20th St., Ste. 4W, New York, NY DC 20090. Purpose: Any lawful act. NY 10013. Purpose: any lawful act. Notice of Qualification of J.P. MORGAN 10011. General Purposes. Notice of Qualification of Teays River GLOBAL ACCESS PRIVATE Notice of Qualification of Zoomdojo Notice of Qualification of Telemundo Investments Management, LLC. INVESTMENTS VINTAGE 2012, LLC. Notice of Qualification of IX 1372 LLC. Authority filed with Secy. of State Group LLC. Authority filed with NY Authority filed with Secy. of State of NY Authority filed with Secy. of State of NY Holdings, L.P. Authority filed with NY of NY (SSNY) on 07/13/12. Office Dept. of State on 6/11/12. Office (SSNY) on 6/27/12. Office location: (SSNY) on 06/05/12. Office location: Dept. of State on 5/29/12. Office location: NY County. LLC formed in location: NY County. Princ. bus. NY County. LLC formed in Delaware NY County. LLC formed in Delaware location: NY County. Princ. bus. addr.: Delaware (DE) on 07/09/12. Princ. addr.: 2290 W. 8th Ave., Hialeah, FL (DE) on 10/15/07. SSNY designated (DE) on 02/29/12. Princ. office of LLC: 591 W. Putnam Ave., Greenwich, CT office of LLC: 40 E. 78th St., 5C, NY, 33010. LLC formed in DE on as agent of LLC upon whom process c/o Proskauer Rose LLP, Eleven Times 06830. LP formed in DE on 3/26/12. NY 10075. SSNY designated as agent 5/28/86. NY Sec. of State designated against it may be served. SSNY Sq., NY, NY 10036-8299. SSNY NY Sec. of State designated agent of of LLC upon whom process against agent of LLC upon whom process shall mail process to: c/o National designated as agent of LLC upon LP upon whom process against it it may be served. SSNY shall mail against it may be served and shall Registered Agents, Inc., 111 Eighth whom process against it may be may be served and shall mail process process to the LLC at the princ. office mail process to: c/o CT Corporation Ave., 13th Fl., NY, NY 10011. Principal served. SSNY shall mail process to to: c/o CT Corporation System, 111 of the LLC. DE addr. of LLC: System, 111 8th Ave., NY, NY 10011, office address: 111 Congressional Corporation Service Co., 80 State St., 8th Ave., NY, NY 10011, regd. agent Corporation Service Co., 2711 regd. agent upon whom process may Blvd., Ste. 115, Carmel, IN 46032. Albany, NY 12207-2543. DE addr. of upon whom process may be served. Centerville Rd., Ste. 400, Wilmington, be served. DE addr. of LLC: c/o The Address to be maintained in DE: 160 LLC: 2711 Centerville Rd., Ste. 400, DE addr. of LP: 1209 Orange St., New Castle Cnty., DE 19808. Arts. of Corporation Trust Co., 1209 Orange Greentree Dr., Ste. 101, Dover, DE Wilmington, DE 19808. Arts. of Org. Wilmington, DE 19801. Name/addr. Org. filed with Secy. of State of DE, St., Wilmington, DE 19801. Cert. of 19904. Arts of Org. filed with the DE filed with Secy. of the State of DE, of genl. ptr. available from NY Sec. of Div. of Corps., John G. Townsend Bldg., Form. filed with DE Sec. of State, Secretary of State, 401 Federal St., Corp. Dept., Loockerman & Federal State. Cert. of LP filed with DE Sec. 401 Federal St. - Ste. 4, Dover, DE 401 Federal St., Dover, DE 19901. Ste. 4, Dover, DE 19901. Purpose: Sts., Dover, DE 19901. Purpose: Any of State, 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity. Purpose: all lawful purposes. any lawful activities. lawful activity. 19901. Purpose: all lawful purposes.

16 | Crain’s New York Business | July 30, 2012 nb31p16-18cl.qxp 7/27/2012 2:10 PM Page 17

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Qualification of iVillage Notice of Qualification of Warburg Notice of Application for Authority of Notice of Qualification of IX 1372 Notice of Qualification of Digital Risk Publishing LLC. Authority filed with Pincus Private Equity (E&P) XI-A, L.P. MRS. BELEM TRADING, LLC filed Mezz GP, L.L.C. Authority filed with Valuation Services, LLC. Authority filed NY Dept. of State on 6/11/12. Office Authority filed with NY Dept. of State with the Secy. of State of NY (SSNY) NY Dept. of State on 6/1/12. Office with NY Dept. of State on 5/21/12. location: NY County. Princ. bus. on 5/8/12. Office location: NY County. on 5/8/12. The LLC was formed in NJ location: NY County. Princ. bus. addr.: Office location: NY County. LLC addr.: 30 Rockefeller Plaza, NY, NY LP formed in DE on 5/3/12. NY Sec. on 2/17/12. Office loc.: New York 591 W. Putnam Ave., Greenwich, CT formed in DE on 4/27/12. NY Sec. of 10112. LLC formed in DE on of State designated agent of LP upon County. The SSNY is designated as 06830. LLC formed in DE on 5/23/12. State designated agent of LLC upon 5/15/00. NY Sec. of State designated whom process against it may be agent of LLC upon whom process NY Sec. of State designated agent of whom process against it may be agent of LLC upon whom process served and shall mail process to the against it may be served. The principal LLC upon whom process against it served and shall mail process to the against it may be served and shall principal business addr.: c/o Warburg business loc. and the address SSNY may be served and shall mail process principal business addr.: 2301 mail process to: c/o CT Corporation Pincus LLC, 450 Lexington Ave., NY, shall mail copy of process to is 75 to: c/o CT Corporation System, 111 Maitland Center Pkwy., Ste. 165, System, 111 8th Ave., NY, NY 10011, NY 10017, Attn: General Counsel. Varick St., 3rd Fl., New York, NY 8th Ave., NY, NY 10011, regd. agent Maitland, FL 32751. DE addr. of LLC: regd. agent upon whom process may DE addr. of LP: c/o The Corporation 10013. The required office address upon whom process may be served. 615 S. DuPont Hwy., Dover, DE 19901. be served. DE addr. of LLC: c/o The Trust Co., 1209 Orange St., in NJ is 1255 River Rd., Edgewater, DE addr. of LLC: 1209 Orange St., Cert. of Form. filed with DE Sec. of Corporation Trust Co., 1209 Orange Wilmington, DE 19801. Name/addr. NJ 07020. Cert. of formation filed Wilmington, DE 19801. Cert. of State, 401 Federal St., Dover, DE St., Wilmington, DE 19801. Cert. of of genl. ptr. available from NY Sec. of with Andrew P. Sidamon-Eristoff, Form. filed with DE Sec. of State, 19901. Purpose: all lawful purposes. Form. filed with DE Sec. of State, State. Cert. of LP filed with DE Sec. State Treas., 33 W. State St., 401 Federal St., Dover, DE 19901. 401 Federal St., Dover, DE 19901. of State, 401 Federal St., Dover, DE Trenton, NJ 08608. Purpose: all lawful purposes. Notice of Formation of Limited Liability Purpose: all lawful purposes. 19901. Purpose: all lawful activity. Company (LLC) Name: APPLE SEEDS NOTICE OF FORMATION OF THE HEART-TUNE, LLC, a domestic LLC. INTERNATIONAL LLC. Articles of CROWN GROUP HOSPITALITY, LLC Notice of Qualification of DVCI CDE V, PROCTER GROUP LLC. Arts of Org Arts. of Org. filed with the SSNY on Organization filed by the Department a domestic LLC, Arts. of Org. filed LLC. App. for Auth. filed with Secy. of filed with Secy of State of NY (SSNY) 04/16/2012. Office location: NY County. of State of New York on: 05/15/2012. with the SSNY on 1/25/11. Office State of NY (SSNY) on 6/1/12. Office on 5/29/12. Office location: BRONX. SSNY has been designated as agent Office location: County of New York. location: New York County. SSNY is location: NY County. LLC formed in SSNY designated as agent upon upon whom process against the LLC Purpose: any and all lawful activities. designated as agent upon whom Delaware (DE) on 3/16/11. SSNY whom process may be served and may be served. SSNY shall mail Secretary of State of New York process against the LLC may be designated as agent of LLC upon shall mail copy of process against LLC process to: 1755 York Ave 7A, NY, NY (SSNY) designated as agent of LLC served. SSNY shall mail process to: whom process against it may be to principal business address: 780 10128. Purpose: Any Lawful Purpose. upon whom process against it may served. SSNY shall mail process to: Saint Anns Avenue, Apt. 6G, Bronx, be served. SSNY shall mail a copy Lion Restaurant Group, LLC, 54 W. Theotopo, LLC. Arts. of Org. filed with c/o Corporation Service Company, NY 10456. Purpose: any lawful act. of process to: 10 West 25th Street, 21st St., Ste. 904-905, NY, NY Secy. of State of NY (SSNY) on 6/5/12. 10010. General Purposes. 80 State St., Albany, NY 12207. DE New York, NY 10010. address of LLC: 2711 Centerville Rd., Notice of formation of VERTIGROW Office in NY County. SSNY designated TRELLIS LLC, a domestic LLC. Arts. Ste. 400, Wilmington, DE 19808. Arts. LLC. Arts. of Organization filed with agent of LLC upon whom process Notice of Formation of Heather Brand of Org. filed with the SSNY on of Org. filed with DE Secy. of State, Secy of State of NY (SSNY) on against it may be served. SSNY shall Fourth LLC. Arts. of Org. filed with 04/30/2012. Office location: NY 401 Federal St., Ste. 4, Dover, DE 5/1/12. Office location: NY County. mail process to 54 Thompson St. 4th Secy. of State of NY (SSNY) on County. SSNY has been designated 19901. Purpose: any lawful activity. SSNY designated as agent upon Fl, NY, NY 10012. Purpose: General. 12/16/03. Office location: NY County. whom process may be served and as agent upon whom process MELWANI & CHAN LLP a domestic SSNY designated as agent of LLC 224 EAST 74TH LLC, a foreign LLC, shall mail copy of process against against the LLC may be served. LLP, filed with the SSNY on 2/17/12. upon whom process against it may filed with the SSNY on 6/18/98. LLC to principal business address: SSNY shall mail process to: C/O Office Location: New York County. be served. SSNY shall mail process Office location: New York County. 106 Cabrini Blvd. 6E NY, NY 10033. Business Filings, Incorporated, 187 SSNY is designated as agent upon to: The LLC, 209 E. 14th St., NY, NY Wolf Rd, Ste 101, Albany, NY 12205. SSNY is designated as agent upon Purpose: any lawful act. 10003. Purpose: any lawful activity. whom process against the LLC whom process against the LLP may Purpose: Any Lawful Purpose. Notice of formation of Fiona Tyson, be served. SSNY shall mail process may be served. SSNY shall mail Notice of Qualification of Purpose Professional Makeup Artist LLC Arts. to: The LLP, 55 West End Ave., Ste. process to: c/o Delta Realty, 805 Global, LLC App. for Auth. filed Sec’y Notice of Formation of MERMAID of Org. filed with the Sect’y of State 9H, NY, NY 10023. Purpose: Law Third Ave, Ste 1100, NY, NY 10022. of State (SSNY) on 7/17/12. Office PLAZA HOLDINGS LLC. Arts. of Org. of NY (SSNY) on 5/17/2012. Office General Purposes. Notice of Formation of LEGACY location: New York County. LLC org. filed with Secy. of State of NY (SSNY) location, County of New York. GLOBAL GROUP, LLC. Arts. of Org. in DE 9/29/11. SSNY designated as on 5/18/12. Office location: NY County. SSNY has been designated as agent DIGITAL MEDIA PARTNERS LLC, a filed with Secy. of State of NY agent of LLC upon whom process SSNY designated as agent of LLC of the LLC upon whom process domestic LLC. Arts. of Org. filed with (SSNY) on 07/23/12. Office location: against it may be served. SSNY shall upon whom process against it may be against it may be served. SSNY shall the SSNY on 06/27/2012. Office NY County. SSNY designated as mail copy of process to 224 Centre St, served. SSNY shall mail process to: mail process to: The LLC, 445 location: NY County. SSNY has been agent of LLC upon whom process 6th Fl., New York, NY 10013. Office The Company, c/o Martin Domansky, Lafayette St #11A, NY NY 10003. designated as agent upon whom against it may be served. SSNY shall address in DE – Incorporating 19 West 34th St., NY, NY 10001. Purpose: any lawful act. process against the LLC may be mail process to Kalnick, Klee & Services, Ltd. 3500 S. Dupont Hwy, Purpose: any lawful activities. served. SSNY shall mail process to: Notice of Qual. of 4 NYP Ventures LLC. Green, LLP, 767 Third Ave, NY, NY Dover, DE 19901. Cert. of Form. on NOTICE OF FORMATION OF Yingke 708 Third Ave 14th Fl, NY, NY 10017. 10017. Purpose: Any lawful activity. file: SSDE, Div. of Corps, PO Box Purpose: Any Lawful Purpose. filed with Sec of State NY (SSNY): Law Firm LLC. Arts of Org filed with 5/10/12. Office in NY County. Formed 898, Dover, DE 19903. Purpose: any the Secy of State of NY (SSNY) on BLNY LLC, a foreign LLC, filed with lawful activities. MINERVA 25 LLC, a domestic LLC, in DE: 4/12/12. SSNY designated the SSNY on 3/9/12. Office location: 06/28/12. Office loc: NY Cty. SSNY Arts. of Org. filed with the SSNY on agent of LLC upon whom process New York County. SSNY is designated Notice of Formation of Richman Tax designated as agent upon whom 11/22/11. Office location: New York against it may be served & shall mail as agent upon whom process against Credit Advisors LLC. Arts. of Org. process may be served and shall County. SSNY is designated as process to: c/o Edge Funds the LLC may be served. SSNY shall filed with NY Dept. of State on 5/7/12. mail process: 630 Fifth Avenue, Suite agent upon whom process against Management LLC, 5301 Wisconsin mail process to: The LLC, 1216 Office location: NY County. Princ. bus. 1912, New York, NY 10111. Principal the LLC may be served. SSNY shall Ave. N.W. Ste 740, Washington, D.C. Lexington Ave., NY, NY 10028. addr.: 1010 Ave. of the Americas, business address: New York City. mail process to: Richard K. Eng, 20015. Foreign add: 160 Greentree General Purposes. Ste. 301, NY, NY 10018. Sec. of Purpose: any lawful acts. Esq., 100 Lafayette St., Ste. 403, NY, Dr. Ste 101, Dover, DE 19904. Arts. State designated agent of LLC upon NY 10013. General Purposes. of Org. filed with Sec. of State Of DE, NOTICE OF FORMATION OF LIMITED whom process against it may be Notice of Qualification of iVillage 401 Federal St., Dover, DE 19901. LIABILITY COMPANY. NAME: served and shall mail process to: c/o Parenting Network LLC. Authority Notice of Formation of SinglePoint Purpose: General. DENTAVERSE, LLC. Articles of filed with NY Dept. of State on IPA LLC. Arts. of Org. filed with Secy. Organization were filed with the CT Corporation System, 111 8th 6/11/12. Office location: NY County. of State of NY (SSNY) on 06/11/12. NOTICE OF QUALIFICATION of Secretary of State of NY (SSNY) on Ave., NY, NY 10011, regd. agent Princ. bus. addr.: 30 Rockefeller Office location: NY County. Princ. Herakles Capital Trend Fund LLC. 5/15/12. Office location: New York upon whom process may be served. Plaza, NY, NY 10112. LLC formed in office of LLC: 315 Hudson St., NY, NY App for Authority filed with Secy of County. SSNY has been designated Purpose: any lawful activity. DE on 5/15/00. NY Sec. of State 10013. SSNY designated as agent State of NY (SSNY) on 5/29/12. as agent of the LLC upon whom Notice of Qualification of VENUS designated agent of LLC upon whom of LLC upon whom process against Office location: NY County. LLC process against it may be served. PARTNERS, LLC. Authority filed process against it may be served it may be served. SSNY shall mail formed in DE on 5/21/12. SSNY SSNY shall mail a copy of process to with Secy. of State of NY (SSNY) on and shall mail process to: c/o CT process to the LLC at the addr. of its designated as an agent upon whom the LLC, c/o Siegelvision, 9 East 06/13/12. Office location: NY County. Corporation System, 111 8th Ave., princ. office. Purpose: To arrange for process may be served. PO address 40th Street, 17th Floor, New York, LLC formed in Delaware (DE) on NY, NY 10011, regd. agent upon the provision of health care services to which SSNY shall mail copy of New York 10016. Purpose: For any 06/11/12. SSNY designated as agent whom process may be served. DE by licensed health care professionals process against LLC: Barton LLP, lawful purpose. addr. of LLC: c/o The Corporation and entities under contracts with 420 Lexington Ave, 18th Fl. NY, NY of LLC upon whom process against it Trust Co., 1209 Orange St., managed care organizations and to 10170. Principal business address: NOTICE OF FORMATION OF ST may be served. SSNY shall mail Wilmington, DE 19801. Cert. of conduct all other acts that may be 277 Park Ave, 40th Fl. NY, NY 10172. Group LLC. Arts of Org filed with process to Attn: Michael Yohai, 30 Form. filed with DE Sec. of State, done by a company under Section Cert of LLC filed with Secy of State Secy of State of NY (SSNY) on Thixton Dr., Hewlett Harbor, NY 11557. 401 Federal St., Dover, DE 19901. 202 of the New York Limited Liability of DE located: PO Box 898, Dover, 5/31/12. Office location: NY County. DE addr. of LLC: c/o Corporation Purpose: all lawful purposes. Company Law. DE 19903. Purpose: any lawful act. SSNY designated as agent upon Service Co., 2711 Centerville Rd., Ste. whom process may be served and 400, Wilmington, DE 19808. Arts. of Org. shall mail copy of process against filed with Secy. of State of DE, 401 LLC to principal business address: Federal St., Ste. 4, Dover, DE 19901. 244 E 79th St (Sojourn), New York, Purpose: Any lawful activity. NY 10021. Purpose: any lawful act. Notice of Qualification of 11 East Notice of Qualification of DuPont 68th Street Property Manager LLC. Performance Coatings, LLC. Authority Authority filed with NY Dept. of State filed with NY Dept. of State on on 2/9/12. Office location: NY County. 5/29/12. Office location: NY County. Princ. bus. addr.: 600 Madison Ave., Issue Dates for Business Connections LLC formed in DE on 4/17/12. NY 17th Fl., NY, NY 10022. LLC formed Sec. of State designated agent of in DE on 12/22/11. NY Sec. of State City Facts (8/27), & Book of Lists (12/24) LLC upon whom process against it designated agent of LLC upon whom may be served and shall mail process process against it may be served to: c/o CT Corporation System, 111 and shall mail process to: c/o CT 8th Ave., NY, NY 10011, regd. agent Corporation System, 111 8th Ave., NY, upon whom process may be served. NY 10011, regd. agent upon whom DE and principal business addr.: 1007 process may be served. DE addr. of Market St., D-13039, Wilmington, DE LLC: 1209 Orange St., Wilmington, DE 19898. Cert. of Form. filed with DE Sec. 19801. Cert. of Form. filed with DE of State, 401 Federal St., Dover, DE Sec. of State, P.O. Box 898, Dover, DE 19901. Purpose: all lawful purposes. 19903. Purpose: all lawful purposes.

July 30, 2012 | Crain’s New York Business | 17 20120730-NEWS--0018-NAT-CCI-CN_-- 7/27/2012 7:56 PM Page 1

City’s gun business: fully loaded

Continued from Page 3 Mr. Chambers, the Fifth Av- $1.2 billion is spent on shooting and safari jackets, blends well with enue-based attorney who has spe- and hunting gear in New York state its ritzy Madison Avenue neigh- cialized in gun licensing for the past each year. bors. The firearms are relegated to two decades, said he’s worked with Some of that comes from the third floor. Even firing ranges security officers for Mr. Trump and Beretta’s local shop, one of 32 li- keep most of their arms for sale out also consulted on an airport issue for censed gun dealers in the city as of of sight. Harry Connick Jr. Basic consulta- February, according to the federal tions cost $250, but legal fees and Bureau of Alcohol, Tobacco, More than 57,000 gun permits other services, such as an escort to Firearms and Explosives. Beretta’s “In New York, you’ll probably police headquarters, could bring the 17-year-old New York outpost is MADISON AVENUE’S BERETTA GALLERY: Its 350 rifles and shotguns range from find people who don’t openly discuss price up to $15,000. one of its five retail stores world- $2,200 to $120,000, said the Italian gun maker’s Robert Booz.

their love of guns or hunting and The $430 permit needed to buy a wide. About 350 rifles and shot- buck ennis shooting,” said Robert Booz, inter- handgun requires a typed license ap- guns, ranging from $2,200 to national director of the Beretta plication,fingerprints,a background $120,000, are showcased on the mains in Manhattan, the other bor- monthly classes on law and safety. Gallery on Madison. check and an in-person appearance Madison Avenue shop’s third floor. oughs offer more places for target John Deloca,the company’s second- But many New Yorkers embrace at police headquarters. Carry per- The Italian gun maker,which has its practice. Most charge upward of generation owner, said each course the Second Amendment lifestyle. mits—like those in the possession of U.S. headquarters in Accokeek, $300 for an annual membership. can attract as many as 20 students. As of March 31, there were 57,358 bigwigs such as Mr. Trump and su- Md., also offers alterations, known Local shooting ranges, such as “If you do a quality job and pro- total gun permits in the city,accord- permarket magnate John Catsima- as gunsmithing, starting at $175. Seneca Sporting Range and Wood- vide a service to handle a firearm in ing to the NYPD. The local NRA tidis—require jumping through ex- haven Rifle & Pistol Range, both in a safe fashion, [visitors will] refer affiliate boasts about 8,000 mem- tra hoops. The process can take Fifty to 100 customers a day Queens, also sell brand-name guns. more people,” he said, noting that bers, making it one of the state’s months. “They’ve made it very “We’re averaging between 50 In business for 42 years, Seneca sells his classes are generating a “tremen- largest gun groups,according to Mr. hard,” said Mr. Catsimatidis, who and 100 customers a day coming Smith & Wessons, Glocks and dous amount of interest.” Ⅲ King. A spokesman for the NRA has had a permit for 35 years. through the store,” Mr. Booz said. Rugers priced from $350 to $1,000. declined to confirm local member- The firearms retail business can While only one shooting range, The club touts a 5,000-square-foot LISTEN to a discussion at ship figures. be lucrative.Mr.King estimates that Westside Rifle & Pistol Range, re- range, more than 100 members, and CrainsNewYork.com/podcasts

ney, an engineer with an M.B.A. last summer and will close perma- the neighborhood. Meanwhile, the who formerly worked at Starwood nently in October when the landlord other contender for the armory is a A different developer Capital, a lender to Youngwoo. He begins work on a new building, won group that plans to build a skating joined in 2007. design kudos but draws mixed re- complex. Continued from Page 3 prediction that shopping centers But that triumvirate has seen its views from its vendors. Mr.Woo only got a shot at trans- Angelo Gordon & Co., which has would be dead in 10 years moved share of controversy. Youngwoo Alison Lucien, who pays $800 a forming the armory because a plan helped finance some of Mr. Woo’s him to think about creating markets purchased AIG’s 70 Pine St. and 72 month to house her women’s bike by the Related Cos. to turn it into a projects. with wide-ranging activities. Wall St. amid great fanfare in 2009, accessories shop, is happy:“It’s been shopping mall was scuttled in 2009 Part of that stems from his un- “We want to stay a step ahead,” paying $150 million and selling great,” she said. over fears that the retail jobs there usual background.Born in Korea,he Mr. Woo said. them just two years later for $251 wouldn’t pay a living wage. As he moved with his family to Paraguay Yet it was projects like the AIG million.But the developer never had Too little traffic awaits the city’s decision, which is as a boy,before eventually settling in deal and his tower with the parking a chance to start a much-ballyhooed Roachele Negron, whose shop expected as soon as August, he’s Argentina. After moving to New elevator that really hit the real estate conversion of the property to a sells children’s clothes and toys, is pushing ahead with his plan to de- York in 1972, he studied architec- radar. In the case of the latter, that mixed-use development. What’s not. She reports that the market is velop Manhattan’s Pier 57 into a ture at Pratt Institute but later opt- helped the project sell, despite more, the vast bulk of the profit on often empty because of poor public- destination filled with cultural ed to become a developer, conclud- having come on line during the the flip went to his Korean financial ity and management. events and specialty shops. ing that position ultimately dictates recession. backer,which was looking to replace Mr. Woo noted that it typically In 2009,he was the surprise win- design. It wasn’t until 1979 that Mr. Youngwoo, lawsuits said. Worse, takes at least two years for a market ner of the contest to transform the Woo purchased his first building. Out of network Youngwoo sued a former employee, to hit its stride. He added that the pier,with a plan that included bring- Since then, he’s bought and sold “We can’t play the same game as alleging he was trying to steal the armory project will be different. For ing an art auction house to the lo- many. A preference for quirky niche [big developers] because we haven’t project. Mr. Woo declined to talk starters,it is a huge indoor space that cale. Shortly after Youngwoo’s se- sites, such as a commercial condo in got their networks,”said Margarette about the suit’s specifics. will boast attractions like movie the- lection, the deal with the auction Chelsea for art galleries, has helped Lee, one of three principals along Despite partnering with Urban aters and two midsize anchor stores. house fell through. Tribeca Film to distinguish him from the pack. with Mr. Woo. “We have to do Space Management, which puts on Also, he hopes to sign on Putumayo Festival is a tenant, and the compa- So does his taste in advisers. For something special.” many of the city’s holiday markets, World Music and exhibition firm ny continues to canvass for others. example, he hires trend consultants Ms. Lee, who joined the firm in Youngwoo has also had its struggles Pinta to develop cultural program- “The project is becoming more to help spot lifestyle changes and 1985, brings her skills as a lawyer. with developing the DeKalb Market. ming to appeal to the many African- and more interesting,”said Mr.Car- then builds accordingly.An adviser’s The other principal is Gregory Car- The outdoor market, which opened Americans and Latin Americans in ney.“We’re very happy with it.” Ⅲ

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES

Notice of Formation of Limited Liability Notice of Formation of Georgia Notice of Formation of The Missing Notice of Formation of NYLex, LLC. NOTICE OF FORMATION OF CHZ Company (LLC) Name: NISSAN 700 Greene LLC. Arts of Org filed with Link NY, LLC. Arts. of Org. filed with Arts. of Org. filed with Secy. of State Partners, LLC. Arts of Org filed with LLC. Articles of Organization filed by Secy of State of NY (SSNY)on Secy. of State of NY (SSNY) on of NY (SSNY) on 06/25/12. Office Secy of State of NY (SSNY) on 4/4/12. the Department of State of New York 2/27/12. Office location: NY County. 7/13/12. Office location: NY County. location: NY County. SSNY designated Office location: NY County. SSNY on: 04/06/2012. Office location: County SSNY designated as agent upon SSNY designated as agent of LLC as agent of LLC upon whom process designated as agent upon whom of New York. Purpose: any and all whom process may be served and upon whom process against it may against it may be served. SSNY shall process may be served. PO address lawful activities. Secretary of State of shall mail copy of process against be served. SSNY shall mail process mail process to c/o Timothy C. Lynch, to which SSNY shall mail copy of New York (SSNY) designated as agent LLC to principal business address: to: 77 East Houston, NY, NY 10012. Offit Kurman, P.A., 300 E. Lombard process against LLC: c/o US Corp of LLC upon whom process against 435 Convent Ave, NY, NY 10031. Purpose: any lawful activity. St., Ste. 2010, Baltimore, MD 21202. Agents, Inc., 7014 13th Ave, Ste 202, it may be served. SSNY shall mail a Purpose any lawful act. Purpose: Any lawful activity. Bklyn, NY 11228. Principal business copy of process to: 115 Broadway, Notice of Formation of ASTOR address: 792 Columbus Ave, Apt 17-O, Suite 302, New York, NY 10006 Notice of Formation of GRETTIR PROPERTY HOLDINGS LLC. Arts. of Notice of Formation of ACP DSK, NY, NY 10025. Purpose: any lawful act. MANAGEMENT, LLC. Arts. of Org. Org. filed with Secy. of State of NY LLC. Arts. of Org. filed with Secy. of T & L MANAGEMENT, LLC, a domestic filed with Secy. of State of NY (SSNY) on 05/31/12. Office location: State of NY (SSNY) on 06/27/12. Notice of Formation of FEEL YOUR LLC. Arts. of Org. filed with the SSNY (SSNY) on 07/02/12. Office Location: NY County. Princ. office of LLC: 575 Office location: NY County. Princ. BEST LLC. Arts. of Org. filed with on 06/08/2012. Office location: NY New York County. SSNY designated Madison Ave., Ste. 7B, NY, NY 10022. office of LLC: 70 Little West St., Apt. Secy. of State of NY (SSNY) on County. SSNY has been designated as agent of LLC upon whom SSNY designated as agent of LLC 24D, NY, NY 10280. SSNY designated 7/6/12. Office location: NY County. as agent upon whom process process against it may be served. upon whom process against it may as agent of LLC upon whom SSNY designated as agent of LLC against the LLC may be served. SSNY shall mail process to: c/o be served. SSNY shall mail process process against it may be served. upon whom process against it may SSNY shall mail process to: 55-59 Michael Jenkins, Apartment 41 G, 10 to Kozusko Harris Duncan at the SSNY shall mail process to the LLC be served. SSNY shall mail process Chrystie St. Ste 407, NY, NY 10002. Liberty Street, New York, NY 10005. princ. office of the LLC. Purpose: at the addr. of its princ. office. to: 210 E. 65th St., NY, NY 10065. Purpose: Any Lawful Purpose. Purpose: Any lawful purposes. Any lawful activity. Purpose: Any lawful activity. Purpose: any lawful activity.

18 | Crain’s New York Business | July 30, 2012 July 30, 2012 | Crain’s New York Business | 18 20120730-NEWS--0019-NAT-CCI-CN_-- 7/27/2012 2:26 PM Page 1

FOR THE RECORD

To make inquiries, contact Frank Malkin Holdings, were represented by ● John Wiley & Sons Inc. (JW’A) Caiazzo at (718) 786-4061. Cushman & Wakefield Inc.’s Harry William Pesce, director and executive ABOUT THIS SECTION Blair, Sean Kearns and Kelli Mekles. committee member, exercised options FOR THE RECORD is a weekly listing of information from the public record that ● Housing Authority The asking rent was undisclosed. on 190,000 shares of common stock at can help businesspeople in the New York area find opportunities, potential Seeks competitive sealed bids by 10 a.m. $33.05 between July 16 and July 19, in a on Aug. 14 for ground improvements at ● Banco Pine signed a five-year lease for transaction worth $6,279,500. During new clients and updates on competitors. Sack Wern Houses. Bid documents may 3,000 square feet at 645 Madison Ave. the same period, he sold 190,000 shares To ask questions or get more information on this section, contact Crain’s be purchased at 90 Church St., 11th The Brazilian bank will occupy space on of common stock at prices ranging from research department at [email protected]. floor, for $25. The fee is payable by the ninth floor. Representation for the $48.85 to $49.43, in a transaction worth money order or certified check made out tenant was undisclosed. The landlord, $9,331,865. He now directly holds to NYCHA. For information, contact TF Cornerstone, was represented by 305,755 shares. seeking bankruptcy protection in the Gloria Guillo at (212) 306-3121or Newmark Grubb Knight Frank’s NEW IN TOWN Southern and Eastern Districts of New [email protected]. Matthew Leon at the property.The ● CBS Corp. (CBS) York. Information was obtained from U.S. asking rent was in the high $70s per Leslie Moonves, president, chief Companies that would like to have details Bankruptcy Court records available on GOODS AND SERVICES square foot. executive and director, exercised options of openings published should submit Public Access to Court Electronic Records. ● Department of Citywide Administrative on 250,000 shares of common stock at descriptions following this format to Listings are in alphabetical order. Services RETAIL $13.43 on July 16, in a transaction worth [email protected], with Seeks competitive sealed bids by 10:30 ● Off the Wall Frozen Yogurt signed a $3,357,500. On the same day, he sold “New in Town” in the subject line. ● 415 West 150 a.m. on Aug. 16 for the provision of a lease for 3,000 square feet at 4 W. 14th 250,000 shares of common stock at 211 W. 92nd St., Manhattan three-wheeled scooter for the New York St. The chain store will occupy space on $31.25, in a transaction worth ● Baked in Brooklyn Filed for Chapter 11 bankruptcy Police Department. The bid document the ground floor and in the basement. $7,811,675. He now directly holds 755 Fifth Ave., Brooklyn protection on July 19. The filing cites can be downloaded at City Record The tenant was represented by 2,064,010 shares. The baked-goods store opened in estimated liabilities of $10,000,001 to online (enrollment is free), or RKF’s Zach Winkler. The landlord, Sunset Park. The shop is the first retail $50 million and estimated assets of requested through vendor relations, Ozymandius Realty, was represented in- ● MSC Industrial Direct Co. (MSM) location for the Aladdin Bakers brand. $1,000,001 to $10 million. The creditors at [email protected] or house. The asking rent was undisclosed. Mitchell Jacobson, chairman, sold with the largest unsecured claims are (212) 669-8610. For further 132,860 shares of common stock at ● Brooklyn Crab Klein & Solomon, owed $26,314.98; information, contact Joseph prices ranging from $64.15 to $68.00 24 Reed St., Brooklyn Brill and Meisel, owed $25,901.58; and Vacirca at (212) 669-8616 or STOCK TRANSACTIONS between July 13 and July 19, in a The seafood restaurant opened in Red US Elevator, owed $20,000. [email protected]. transaction worth $8,943,741. He now Hook. It will also feature steaks and Following are recent insider transactions at indirectly holds 51,196 shares. outdoor games. ● 2279-2283 Third Avenue Associates ● Department of Education New York’s largest publicly held companies 2279-2283 Third Ave., Manhattan Seeks competitive sealed bids by 4 p.m. filed with the Securities and Exchange ● Blackrock Kelso Capital Corp. (BKCC) ● Elektra Theater Filed for Chapter 11 bankruptcy on Aug. 6 for the provision of sign- Commission by executives and major Virginia Retirement System sold 673 Eighth Ave., Manhattan protection on July 17. The filing cites language interpretation/interpreters for shareholders. Listings are in order of 353,818 shares of common stock at The off-Broadway theater has opened in estimated liabilities of $10,000,001 to deaf students, parents, teachers or staff transaction value.The information was prices ranging from $9.65 to $9.78 Times Square. The theater will be home $50 million and estimated assets of at any DOE-sponsored event. To obtain obtained from Thomson Reuters. between July 11 and July 18, in a to Silence! The Musical. $10,000,001 to $50 million. bid documents or make inquiries, email transaction worth $3,432,487. The [email protected] or call ● Sirius XM Radio Inc. (SIRI) company also sold 43,895 shares of ● Molecule ● DPC Realty Corp. (718) 935-2300. The bid opening date is Mel Karmazin, chief executive and common stock at $9.65 on July 19, in a 259 E. 10th St., Manhattan 107-02 37th Ave., Queens Aug. 7 at 11 a.m. director, exercised options on 7,800,000 transaction worth $423,644. It now The boutique opened in the East Village. Filed for Chapter 7 bankruptcy shares of common stock at $0.43 directly holds 14,611,700 shares. The shop sells “perfectly pure” New York protection on July 12. The filing cites ● Health and Hospitals Corp. between July 16 and July 17, in a City tap water, among other things. estimated liabilities of $500,001 to $1 Seeks competitive sealed bids by 10 a.m. transaction worth $3,354,000. During ● MasterCard Inc. (MA) million and estimated assets of $500,001 on Aug. 8 for the repair and the same period, he sold 7,800,000 MasterCard Foundation sold 7,260 ● Trunk Show Designer Consignment to $1 million. maintenance of refrigeration equipment. shares of common stock at prices shares of common stock at prices 275-277 W. 113th St., Manhattan For more information, contact Sherry ranging from $2.05 to $2.06, in a ranging from $430.48 to $433.36, in a The high-end resale boutique opened in ● JNJ Restaurant Supplies Inc. Lloyd at (212) 442-3863 or transaction worth $16,033,320. He now transaction worth $3,135,808. It now Harlem. It will feature brands such as 133-38 32nd Ave., Queens [email protected]. directly holds 8,823,950 shares. directly holds 12,812,100 shares. Ⅲ Chanel, Givenchy and Alexander Wang. Filed for Chapter 11 bankruptcy protection on July 19. The filing cites ● School Construction Authority estimated liabilities of $500,001 to $1 Requests proposals by 2 p.m. on Aug. 8 COMPANY MOVES million and estimated assets of $0 to for the provision of asbestos, lead, mold DEALS ROUNDUP $50,000. and PCB environmental services. For Companies that would like to have details more information, contact Donald of recent moves published should submit Mezick at (718) 752-5479 or TRANSACTION SIZE descriptions following this format to GOVERNMENT CONTRACT [email protected]. SELLER/TARGET (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE [email protected], with OPPORTUNITIES Paulson & Co. $5,901.4 NRG Energy Inc. SB M&A “Company Moves” in the subject line. (Manhattan), T. Rowe Following are selected contract REAL ESTATE DEALS Price Associates Inc./ ● DSW opportunities recently announced by New GenOn Energy Inc. 2220 Broadway, Manhattan York City agencies.To learn how to sell Companies that would like to have details Goldman Sachs Group’s $4,594.0 BC Partners, Canada Pension Plan FB M&A The discount shoe retailer opened a new goods and services to city government, visit of their recent transactions appear in these merchant banking division Investment Board, management store on the Upper West Side. It is the www.nyc.gov/selltonyc. For a searchable listings should email descriptions following (Manhattan), Oaktree of Cequel Communications Holdings I Capital Management, retailer’s third Manhattan location. database of current procurement notices, this format to IThomas@crainsnewyork Quadrangle Group visit www.nyc.gov/cityrecord. Listings are .com, with “Real estate transaction” in the (Manhattan), Cequel III, ● Hot Bread Kitchen alphabetical by category and department. subject line, or enter them online at Quadrangle Capital Partners 1590 Park Ave., Manhattan crainsnewyork.com/submitadeal. Deals are (Manhattan)/Cequel The nonprofit bread bakery and social CONSTRUCTION SERVICES listed in order of square footage. Communications Holdings I enterprise opens its first retail location, ● Department of Parks and Recreation Veolia ES Solid Waste $1,909.0 Highstar Capital (Manhattan) FB M&A Hot Bread Almacen, at food market La Seeks competitive sealed bids by 10:30 COMMERCIAL Inc./Veolia ES Solid Marqueta. Other Hot Bread Kitchen a.m. on Aug. 16 for the construction of a ● Holtz Rubenstein Reminick signed a Waste Inc.’s U.S. operations programs include Project Launch and skate park in Faber Park, located lease for 29,300 square feet at 1 Penn Goldman Sachs Bank USA $550.0 State Street Corp. SB M&A HBK Incubates. between Faber and Sharpe avenues, Plaza. The accounting firm will occupy (Manhattan)/Goldman Sachs north of Richmond Terrace, Staten space on the 30th floor.The tenant was Administration Services Co. ● La Marina Island. Bid documents are available for represented by CBRE Group Inc.’s Scott Regency Centers Corp./ $321.0 Blackstone Real Estate Advisors FB M&A 348 Dyckman St., Manhattan $25 in the blueprint room, Olmsted Gottlieb, Evan Haskell, Susan Kahaner 15 Property Portfolio (Manhattan) The beachside seafood restaurant Center, Flushing Meadows Corona and Mike Wellen.The landlord, Vornado Pinebridge Capital Partners $163.2 VTB Bank, CB Corporate Commercial SB M&A reopened in Inwood. Its original Park, Queens, from 8 a.m. to 3 p.m. The Realty Trust, was represented in-house by Inc. (Manhattan)/Bulgarian Bank AD-Sofia location closed in 2007. fee is payable by company check or Craig Panzirer and Jared Solomon.The Telecommunication Co. AD money order to the City of New York, asking rent was undisclosed. (unknown majority stake) ● Pink Elephant Parks and Recreation. To make Boomerang Media $155.0 DreamWorks Animation SKG Inc. SB M&A 40 W. Eighth St., Manhattan inquiries, contact Juan Alban at ● The Centre for Social Innovation (Manhattan)/Classic The nightclub moved to a new location (718) 760-6771 or juan.alban@ signed a lease for 24,000 square feet at Media Inc. in Greenwich Village. Previously, it was parks.nyc.gov. 601 W. 26th St. The office suite company Bertram Capital $116.0 Penguin Group (USA) Inc. (Manhattan) SB M&A at 527 W. 27th St. will occupy space on the third floor. The Management/Author ● Department of Transportation representatives for the tenant and the Solutions Inc. ● Potbelly Sandwich Shop Seeks competitive sealed bids by 11 a.m. landlord, RXR Realty, were undisclosed. Undisclosed/ $105.0 Mayfield Fund, Menlo Ventures, ruNet GCI 46 W. 56th St., Manhattan on Aug. 8 for the furnishing and The asking rent was undisclosed. Fab.com Inc. Holdings Ltd., Pinnacle Ventures, The eatery opened a new location in the installation of advanced solid-state First Round Capital, DoCoMo Capital ● Inc., Atomico Investment Holdings Ltd., Central Park South neighborhood. It is traffic controllers to replace electro- The Laura and John Arnold Andreessen Horowitz, individual investors the chain’s 10th site in the New York area. mechanical traffic signal controllers. Bid Foundation signed a lease for 3,400 250 W. 57th St. Selected deals announced for the week ended July 21 involving companies in metro New York. documents can be obtained by calling square feet at The FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing the bid window at (212) 839-9435. A philanthropic organization will occupy shares of a company with the participation of a financial buyer. GCI: Growth capital investment BANKRUPTCIES printed copy can be obtained for a $50 space on the 18th floor. The tenant was represents new money invested in a company for a minority stake. SB M&A: Strategic buyer deposit, payable by certified check or represented by Newmark Grubb Knight M&A represents a minority or majority acquisition of existing shares of a company without the The following listings are selected from the money order made out to the New York Frank’s Erik Harris and Aaron Maltz. participation of a financial buyer. source: capitaliq most recent available filings by companies City Department of Transportation. The landlords, W&H Properties and

July 30, 2012 | Crain’s New York Business | 19 20120730-NEWS--0020-NAT-CCI-CN_-- 7/27/2012 7:56 PM Page 1

IN THE BOROUGHS BROOKLYN, MANHATTAN, QUEENS

21ST STREET-QUEENSBRIDGE (QUEENS) ON THE LINE Possible future home of Cornell spin-offs F train’s hot roll: tech magnet Hundreds of tech outfits have clustered around the F train. Continued from Page 1 of the best bets that techies have for Late last year, San Francisco- ROOSEVELT ISLAND in speeches as “the F-train tech cor- finding affordable housing lie along based Yelp opened its New York Future home of CornellNYC Tech, Manhattan ridor,” is counting on. He hopes the the F train’s early stops in the bor- headquarters at 104 Fifth Ave., opening in 2017 campus will stretch the tech indus- ough, down in the Lower East Side. where Apple has an office for its mo- 14TH AND 23RD STREETS Queens try across the East River and deeper There, Mo Yehia moved to a fifth- bile-advertising business. AOL re- (AT SIXTH AVE.) into Queens neighborhoods such as floor walk-up on Orchard Street. cently moved its 200-person Patch Firms: 114 Long Island City. In much of the F Today, from that three-bedroom division, which covers local news, Including: Bitly, Jibe, Yodle train’s 27-mile, three-borough apartment that he shares with two from SoHo to a Sixth Avenue build- SECOND AVENUE range, the signs are already there. others, he runs his startup, Sqoot, a ing between West 21st and West (AT EAST HOUSTON STREET) Firms: 8 JAY STREET “In a number of neighborhoods local ad network and merchant-in- 22nd streets that also houses a Trad- (DOWNTOWN around the corridor you go into a er Joe’s supermarket. Including: Sqoot, Justmap.it, sights provider. He starts work each Gin Lane Media B’KLYN) coffee shop and you hear tech chat- morning at 9, after his roommates “I have so many clients that have Brooklyn Firms: 5 ter and see people with laptops writ- leave for their jobs. to live on the F line,”said Kira Saltz- Including: YORK STREET (DUMBO) MakerBot, ing code,” said Dan Huttenlocher, man, a broker at Town Residential. Firms: 80 Q-Sensei dean of CornellNYC. No suits hanging around “The cool thing about the F is it Including: Etsy, Huge, Pontiflex That’s the case in Brooklyn neigh- “I picked the Lower East Side reaches so many different neighbor- Source: New York City’s Made in NY Ditgital Map borhoods as far out as Gravesend, because it’s a good vibrant area and hoods.” where creative folks are drawn by all my professional outings and Tech funders,too,are increasing- lowest in the entire nation. In re- square foot, versus $30 in Dumbo larger apartments that rent far below events are a couple of subway stops ly feeling the pull of the F train.Ear- sponse, some firms are eyeing un- and double that in midtown south, Manhattan norms. Rents rise 10%, away,” said Mr. Yehia, a former in- lier this month, venture capital firm tapped areas like downtown Brook- tech companies aren’t coming, ac- 20% and 30% as the F train tracks vestment banker, who also likes the FirstMark Capital moved four sub- lyn, near the F train’s Jay Street stop. cording to John Reinertsen, a com- head toward Manhattan,and Brook- area for what it doesn’t offer. “You way stops south to West 15th Street Others hope that CornellNYC will mercial broker at CBRE. lyn landlords are generally more in- don’t get suits living in these areas, and Fifth Avenue. stretch the tech corridor into Long “It’s cheap here, but LIC does clined than their Manhattan peers to and you don’t get too many tourists.” “This is the center of innova- Island City. not have the hip, cool factor yet,” he successfully cope with renters who, Similarly, Kip DeMane, a pro- tion,” said Amish Jani, founder and said. yes, have a low base pay,but just may grammer at Expo Communications managing director of FirstMark, a Hip problems Farther up the line, however, are have a higher capacity for racking up Inc., recently moved to an apart- $225 million fund that was previ- Right now, that area remains a Queens neighborhoods, including overtime or landing stock options. ment on Clinton and Rivington ously at West 49th Street and Sixth tough sell to the tech community. Jackson Heights and Kew Gardens, “Tenants have a chance at streets, a stone’s throw from the Avenue in midtown. “Many of our The F’s only stop in the neighbor- where relatively reasonable home charming the landlord,” said An- nearest entrance to the Delancey portfolio companies are in the area.” hood is at 21st Street-Queens- prices and rents could yet become thony Lolli, founder of residential Street station, where he rides the F That success, however, is coming bridge, an area dominated by the big draws for tech workers, students broker Rapid Realty. “Brooklyn uptown four stops to West 14th at a price.Rents are rising in Dumbo, huge Queensbridge Houses, a pub- and professors alike.  landlords are more accepting and Street and Sixth Avenue, near where office vacancy rates are in sin- lic housing development, and scat- willing to give them a shot.” Expo’s office and the offices of many gle digits, and in midtown south, tered industrial companies. Despite LISTEN to a discussion at In Manhattan, meanwhile, some other tech-related outfits. where the vacancy rate, at 6%, is the bargain office rents as low as $19 per CrainsNewYork.com/podcasts

The mile-long greenway, built Design, which collaborated on the show. It is about a neighborhood long gone, production having FROM with funds from the city’s PlaNYC pavilion, gave it a whimsical, wavy that, in a heyday spanning four moved overseas years ago. More re- AROUND 2030 for a “greener, greater” New roof meant to mimic the ocean and decades from the 1920s onwards, cently,many designers have also de- York, runs from Beach 32nd Street hopefully endear the building to the housed one of the city’s biggest camped, switching to trendier parts THE CITY to Beach Ninth Street,east of Rock- local community. economic engines, the garment in- of the city like SoHo.As a result,the away’s most popular sun-and-surf “That’s the challenge,” said dustry. Back in the day, the area area bears so little resemblance to QUEENS spots. Already open are sprawling Claire Weisz, an architect at WXY. boasted the “largest collection of the one featured in the show that lawns, a playground, a skate park “To do something that will be well skyscraper factories in the world,” two months ago the local Fashion Park takes root and rebuilt handball courts. A new loved for decades.” according to Carol Willis, director Center Business Improvement Dis- on Far Rockaway performance stage hosted its —cara eisenpress and curator of the Battery Park trict announced it was weighing a inaugural production—Hamlet— City-based museum. name change designed to help dis- The abandoned properties and last week. MANHATTAN The show includes photos of tance the area from its garmento parking lots that once dotted the Next up is a 2,700-square-foot many of them, as well as models— roots. landscape along the ocean at the pavilion with bathrooms, picnic Revisiting garment some five feet tall—of loft buildings In a tribute to what once was,the eastern end of Rockaway Beach in and Ping-Pong tables, and a shaded on West 37th Street. Drawings, ad- Skyscraper Museum show will run Queens have largely been supplant- public area that is expected to open center glory vertisements and period dresses are through Jan. 20. It is expected to ed by a $30 million park, whose of- later this summer. Last week, the Skyscraper Muse- also featured. draw 12,500 visitors. ficial opening is expected soon. WXY Architecture and Urban um unveiled its new Urban Fabric Today, most of the factories are —adrianne pasquarelli

money on a loan: It says only $5.6 tile takeover for $174 million. legations. Neither Apple nor PwC Apple Bank expands million, or a tiny 0.13%, of its $4.4 Mr. Stahl, who passed away in would comment on the litigation. billion loan portfolio is nonper- 1999,is probably best known for be- While the litigation has played forming. ing the target of a murder-for-hire out, the Stahl estate appears to have Continued from Page 1 agencies such as the Export-Import Such extreme caution allowed scheme in the mid-1990s by anoth- taken significant sums out of the team that stubbornly refused to Bank or the Small Business Admin- Apple to navigate the storms of re- er prominent real estate executive, bank. In 2008, the bank paid out a loosen standards or veer into new istration. And although the bank cent years with nary a blip. Net in- Abe Hirschfeld.The Stahl Organi- $125 million dividend and, after types of lending during the boom doesn’t lend much to low- or mod- come last year was about $42 mil- zation, launched in 1949, owns 5 paying no dividends over the next years. Apart from adding ATMs erate-income customers, a report lion, 14% higher than the result for million square feet of commercial two years, paid out $20 million last and online banking, Apple has last year by the Federal Deposit In- 2010.It never lost a dime during the space and 3,000 apartments,includ- year. spurned almost every trend in fi- surance Corp. described the bank’s crisis years that nearly sank some of ing 277 Park Ave. and the Upper Asked if the dividend payments nance over the past 30 years. level of investment in government- its larger competitors. The worst West Side’s Ansonia. mean the Stahl estate is cashing out Even its modest marketing cam- and nonprofit-backed community- year it had was 2009, when it earned and looking to sell the bank or per- paigns recall another era. “We ad- development projects as “extraordi- $21 million. Prepping for a sale or IPO? haps take a piece of it public, Mr. vertise mostly in print newspapers,” nary.” On a risk-adjusted basis, Ap- “We don’t do anything unique,” Mr. Stahl’s death remains an is- Matera said, “Not that I know of.” said Jim Matera, senior vice presi- ple’s capital is equal to 25% of its said Mr. Matera, who has worked at sue at Apple, which has been locked As for Apple’s decision to acquire dent for consumer banking at Ap- assets—more than double the the bank since 1991, the same year in a lengthy legal battle with its for- the Emigrant branches from the ple. “Our marketing budget is de- amount required by regulators for a Chief Executive Alan Shamoon mer accounting firm over a matter Milstein family,a real estate dynasty signed to grow our deposit well-capitalized bank. joined. “We haven’t forgotten what stemming from his demise. that owned them for 25 years, Mr. franchise.” Still, the bank’s defensiveness we are. We’ve always been a savings The bank sued Pricewaterhouse- Matera said an unusual opportunity comes at a cost. It means it earns a bank and are happy to remain that.” Coopers in New York state court,al- triggered an unusual response. A low-risk loan portfolio lot less on its loans than others do.It It can remain that way because it leging that bad advice from the firm “It helps us expand and fill in our Apple has 630 employees and $8 collects an average yield of just doesn’t have a slew of shareholders resulted in Apple paying $12 million footprint,” he said. “We like New billion in assets, most of them real 3.6%, well below its peer-group av- clamoring for growth.The bank re- in back taxes and interest after it York.” Ⅲ estate loans or investments and erage of 5.3%, according to data ports to only one owner,the estate of bought back stock from Mr. Stahl’s nearly all of them low-risk. Many filed with FDIC. But on the flip Stanley Stahl, a real estate develop- heirs to help them pay a $190 million LISTEN to a discussion at are guaranteed by government side, the bank almost never loses er who bought Apple in a 1990 hos- estate tax bill. PwC disputes the al- CrainsNewYork.com/podcasts

20 | Crain’s New York Business | July 30, 2012 20120730-NEWS--0021-NAT-CCI-CN_-- 7/27/2012 2:28 PM Page 1

INSIDE HELLUVA TOWN Source Lunch Morris Proof is in the Adjmi is a modern guy pudding PAGE 22

Pudding, that old-fashioned treat, Out and About could be heading for a revival in Tyson hits the the Big Apple. This month, New York Natural stage PAGE 23 Pudding Co. began rolling out its premium chocolate, salty caramel, banana, French toast and other- flavored creations in about 30 of the city’s gourmet stores. And in August, the Westbury, L.I.-based company will roll out a food truck. “We think we are at the right place, right time,” said co-founder and investor David Smith. “Our product is made very similar to how Mom made pudding on the stove top with milk and cream.” Pudding, unlike the ubiquitous frozen yogurt, can hardly be touted as a healthy alternative, but Mr. Smith knows a thing or two about creamy treats. His family once owned the Dolly Madison and Sedutto ice cream brands, and he owns MaximoPino, a gelato brand made in the Westbury facility where the pudding is produced. The entrepreneur has backed other food concepts, including Rockography Cafe, a music-themed restaurant in the West Village that closed last year. —lisa fickenscher Deal breakers

Unsubscribe Deals, launched two months ago in a Lower East Side apartment, is taking aim at the pesky, daily discount notifications that fill up email accounts faster than the savings in subscribers’ wallets. “The emails just never stop,” GOING PLATINUM: Edwin said former attorney The goal for Bob Hermawan, who founded the site Pittman and with his girlfriend, Lea Pische business partner (pictured below). He has invested Bertha Gonzalez roughly $5,000. Nieves was to make Unsubscribe Deals lets Gmail their high-end Casa and Yahoo mail users cancel up to Dragones smoother 12 subscriptions with a few mouse than the best single clicks. And with a new feature, malt Scotch. released in July, people can opt for a weekly deals wrap-up, curated on the site and based on individual preferences. The couple expects the weekly email and other recent add-ons to

generate more traffic—20,000 buck ennis people by 2013, up from 3,200 to date—and revenue. When users SMALL SHOT buy a deal through the weekly aggregator, some daily deals sites Tequila revenue is up, but the segment is a mere will pay Unsubscribe Deals an 8% drop in the bucket of 2011 to 15% commission. An average distilled spirits sales. daily deal costs $40, he said. Radio station break The couple has also tried to make the site more interactive for $68.4B users, who can gripe about their Bob Pittman’s premium tequila makes a splash deal misadventures, like: “I bought a Groupon for a spa. They tried to make me do yoga.” BY MATTHEW FLAMM —ken christensen or wealthy executives, owning a high-end liquor brand can be an expensive hobby that takes the mind off corporate headaches. But for Bob Pittman, the founder of MTV and chief executive of Clear Channel Communications, his ultra-premium tequila, Casa Dragones, is like any of his other businesses.That is, it makes him feel 18 years old again. ¶ Mr. Pittman belongs to a select group $6.2B of bold-faced names who craft luxury spirits for connoisseurs.They include former Time Warner CEO Dick Parsons, who produces a respected Tuscan Distilled Tequila wine, and Dan Aykroyd, who puts out See TEQUILA on Page 22 spirits

courtesy of unsubscribe deals F July 30, 2012 | Crain’s New York Business | 21 20120730-NEWS--0022-NAT-CCI-CN_-- 7/27/2012 2:29 PM Page 1

SOURCE LUNCH: Tequila station break MORRIS ADJMI by Theresa Agovino Continued from Page 21 Mr.Pittman owes his latest busi- lot of the character,” Mr. Zarus diamond-filtered Crystal Head ness fix to Ms. Gonzalez Nieves. A said.“They’ve done a great job with Vodka. But the Clear Channel former commercial director for giving it cachet.” chief also gets a kick out of being an North America at Jose Cuervo, she The co-founders say that the entrepreneur. was the first woman in Mexico cer- packaging matches the product, Now coming up on the third an- tified as a maestra tequilera, or tequi- the flavor is complex and balanced, Mod architecture in niversary of its launch, Casa Drag- la expert. and that the clarity of the drink is ones is on track to double sales this The two met at a Brooklyn party part of the experience. year to 24,000 bottles, according to 2007,where Mr.Pittman told her of “One of the secrets of Casa historic proportions Mr.Pittman and co-founder Bertha his idea for creating “a sipping tequi- Dragones is we hang onto the agave Gonzalez Nieves.At a retail price of la” that would be smoother than the flavor,” Mr. Pittman said. “You’ll around $275, that would give the best single malt Scotch.Ms.Gonza- pick up a little vanilla,a little pepper, orris Adjmi is the tremendous job of keeping problems tequila well over $6 million in sales. lez Nieves, as it happens, is not only pear,citrus and floral.By having [the favored architect of from occurring. Look at develop- Mr. Pittman insists that prof- a devotee of the art and history of color] clear, you don’t have your downtown’s devel- ment on Sixth Avenue.South of 23rd itability isn’t that far away,not count- tequila, but has long championed mind set on how it’s going to taste.” opers for his ability is a historic district, and north isn’t. ing the $10 million to $20 million Mexico as a maker of luxury goods. Casa Dragones may be a labor to create modern [The northern part] has all those gi- he’s invested in the venture. But the She spent the next year scouting of love, but its co-founders had a Mbuildings that fit seamlessly into his- ant not-very-interesting buildings.It pleasure of owning a tequila that blue agave plants in tequila’s home shrewd sense of timing. While toric neighborhoods. The New Or- is development run amok. And his- comes in signed, hand-engraved state of Jalisco, and working with a tequila remains a small segment of leans native, 53, has already put his toric buildings and neighborhoods crystal decanters doesn’t have a lot to master tequila maker whom she the distilled spirits industry—$6.2 stamp on Lower Manhattan with create value. TriBeCa is one of the do with making money. brought out of retirement to refine billion in sales out of a $68.4 billion buildings like Scholastic’s headquar- most expensive neighborhoods, and Casa Dragones makes him feel the fermentation and filtration total—it’s growing quickly. ters at 557 Broadway, the Theory it is a historic district,and there is de- 40 years younger because he believes processes. She and Mr. Pittman The category was up 5.5% in Building at 408 Greenwich St.,Wilf velopment going on there. it’s unlike anything else on the mar- vetted the results until they got 2011,outpacing the industry’s 3.4% Hall for NYU’s law school and the ket—just like MTV back in 1981. what they wanted—a smooth, gain. The super premium subseg- High Line Building at 450 W. 14th You haven’t designed a big skyscraper—is “These kinds of businesses bring clear, “platinum” spirit that in- ment—where Casa Dragones fits St. He also designed the Wythe Ho- that a goal? out the passion,”Mr.Pittman said in cludes a touch of aged tequila with in—grew by 11.5%, according to tel in Williamsburg, Brooklyn, Not necessarily. I don’t wake up the offices of his private equity firm, its color filtered out. the Beverage Information Group’s which has become quite a happening saying I want to do a tower.I don’t see Pilot Group, where Casa Dragones “We went through a year of ex- 2012 Liquor Handbook. destination, and will soon open an too many towers that I say, “Wow, I is based. “I’m almost addicted to it. ploration,” Ms. Gonzalez Nieves office nearby.Meanwhile,he’s work- wish I’d done that.” It’s like with Clear Channel. I had said. “We wanted to truly expand “The high-class problem” ing on about seven condo projects no interest in being CEO. Then I the tequila repertoire.” Mr.Pittman,who spent a decade downtown, as well as a film studio Why are you opening an office in made the mistake of looking at the Since its launch,Casa Dragones in private equity before joining Clear and an office building. Williamsburg? business, and I went, ‘Wow, you’ve has won applause from Oprah Channel, says there are several pos- Since I did the hotel I was going got this and this and this’—and sud- Winfrey,Martha Stewart and,per- sible “exits”for Casa Dragones.They What about architecture appeals to you? out there,and it was just so vibrant.It denly I’m 18 years old again.” haps even more important,celebri- include a sale, as well as taking on I think it is really amaz- has a different kind of en- ty chefs like Bobby Flay and Eric new partners and expanding. ing to be able to see some- WHERE ergy. And it will be a sepa- Still on the air Ripert. But it has its critics, too. But right now,he and Ms.Gon- thing that is just lines on a rate business. I’m working While he remains bullish on the Tequila consultant Christopher zalez Nieves aren’t thinking about screen and then translate it IT WAS for an Italian developer radio giant,and trumpets the virtues Zarus believes that the brand’s ex- anything except extending distri- into three dimensions. Ar- ALISON EIGHTEEN that is doing some projects 15 W. 18th St. of popular stations, like Z-100, that tensive filtering removes too much bution to more cities and continu- chitecture affects us in (212) 366-1818 in Red Hook [Brooklyn], are part of a national footprint, he of the flavor. He also thinks Casa ing to get the right people to taste many ways: in the way we www.alison converting a warehouse may fare better with Casa Dragones. Dragones is overpriced, and that its the spirit and talk about it. live and the way we experi- eighteen.com into artists’ studios. Debt-laden CC Media Holdings luxury image and beautiful packag- “The high-class problem, ence cities.And it is my way AMBIENCE: lost $144 million in the first quarter ing are only so much hype. which we probably will get, is de- of contributing to a city. Sophisticated Do you worry that there is of this year, a 9% steeper loss than in “They’ll tell you it’s a more bal- mand will outstrip our ability to casual, with more interesting architectural Is it a strategy to mostly work eggplant leather work going on overseas? the year-earlier period.Revenue rose anced flavor, but if you filter the keep up,”Mr.Pittman said.“But so banquettes and 3% to $1.36 billion. heck out of it you’re taking away a far we’re able to.”  downtown? whimsical Maybe the U.S. is a little I think the Scholastic wallpaper. behind. But New York has Building established a WHAT THEY ATE: been going through an ar- niche for me.[Architecture Ⅲ Bottle of chitectural renaissance. critic] Paul Goldberger sparkling water, Herzog & de Meuron and two iced teas said it would teach a gener- Ⅲ Beet salad Jean Nouvel are doing some ation of architects how to appetizer great projects here.There is JOIN CRAIN’S build in a historic district.It Ⅲ Arugula fennel a focus on architecture as a was viewed as a sensitive salad way to sell projects. Ⅲ Mushroom new building. That is how polenta entrée my practice developed. I’ll Ⅲ Red Hawaiian Is that a good trend for ADVISORY PANEL work my way uptown. sea bass entrée architecture, or is the concept Ⅲ Regular coffee and espresso of starchitects hurting What is the secret to building Ⅲ Tab: $113.45, creativity? in historic districts? including tip I think it is branding, I approach a project and that has happened to Looking for readers to share from the context first and I try to sub- everything, whether it is shoes or sume my ego. Every project doesn’t buildings. We should create good views and opinions. need to be a loud statement. Some buildings and not just brand names. can be more vocal, some more con- Every city wants a Frank Gehry mu- textual. There needs to be an edge seum,but then they all look the same, that makes it special, but it doesn’t although slightly modified. I think need to be screaming all the time. A that commoditizing buildings creates Sign up for FREE today. building can stand out by fitting in. cookie-cutter architecture, and whether or not they are great build- Critics have accused the Landmarks ings,it is still not something you want www.crainsnewyork.com/advisory Commission of creating too many to see. I think Gehry is commodi- landmarked and historic districts, which tized. He is a very talented architect, they say restricts development. Your but a lot of his buildings look the reaction? same.But maybe people think I do all As far as I’m concerned, they do a same stuff too. ■ CRAIN’S NEW YORK BUSINESS INSIDE TIP: The restaurant offers 20% off cocktails during its daily happy hour.

22 | Crain’s New York Business | July 30, 2012 20120730-NEWS--0023-NAT-CCI-CN_-- 7/27/2012 2:30 PM Page 1

OUT AND SNAPS CELEBRITY CHEFS COME OUT TO SUPPORT REFUGEES ABOUT by Emily Laermer and Miriam Kreinin Souccar

CULTURE FIX CAREER BUILDERS FRIDAY, AUGUST 3 MONDAY, JULY 30, THE MURDER OF TO TUESDAY, JULY 31 CROWS, an Count Me In and American installation by Express OPEN will host the MAKE artists Janet Cardiff MINE A MILLION COMPETITION AND and George Bures HOMECOMING. Local women Miller that explores entrepreneurs will compete for a physical and spot in Count Me In’s business structural attributes accelerator program. The event barnard/wireimage neilson of sound, debuts at also includes keynote speakers and Chef DAVID BURKE (left), refugee AH LUN and the Park Avenue Armory.The artists use panel discussions. It begins at 1 EDEN GRINSHPAN, host of Eden Eats on the nearly 100 speakers to transmit sounds p.m. on July 30 and will take place Cooking Channel, at the GenR Summer Soiree for the International Rescue Committee on July ranging from crashing waves to a marching at Barnard College, 3009 24. The annual event raises funds to support kempin/gettyjason images band to transport audiences into a dreamlike Broadway.Tickets cost $49. For the IRC’s New Roots program, which JASON BINN, MEHMET OZ, DEEPAK CHOPRA, SETH GREENBERG, SASHA MARTYNENKO, world.Tickets are $12 for general admission, more information, visit establishes community gardens for newly MALLIKA CHOPRA and GOTHAM CHOPRA (from left) at the launch celebration for the $10 for students and seniors, and free for www.makemineamillion.org. arrived refugees across the U.S. Chopras’ new YouTube channel on July 18. children under 11.The exhibition takes place through Sept. 9 at 643 Park Ave., THURSDAY, AUGUST 2, between East 66th and East 67th streets. For TO SATURDAY, AUGUST 4 more information, visit Thousands of bloggers will come www.armoryonpark.org. together at the annual BLOGHER CONFERENCE. Keynote speakers SATURDAY, AUGUST 4 include Martha Stewart and Katie The Brooklyn Museum will celebrate Couric. Discussions will include Caribbean culture in its monthly TARGET women and the upcoming FIRST SATURDAY. The event includes presidential election. The performances, gallery talks and art displays. conference is at the Hilton New It kicks off with electronic music artist Val York, 1335 Sixth Ave., between Jeanty and saxophonist Buyu Ambroise. West 53rd and West 54th streets. Museum admission is free from 5 p.m. to 11 Tickets for preconference events p.m. and includes entrance to all galleries on Aug. 2 are $79. Tickets for one and events. Parking costs $4. The museum day start at $149, and full- is located at 200 Eastern Parkway, at conference passes start at $298. Washington Avenue. For more information, For more information, visit visit www.brooklynmuseum.org. www.blogher.com. DON’T MISS TYSON ON BROADWAY TUESDAY, JULY 31, TO SUNDAY, AUGUST 12 carly otness/bfanyc.com DIANA TAYLOR (left) and LAUREN SANTO DOMINGO, a contributing editor at Vogue, at Pin carly otness/bfanyc.com Former heavyweight boxer Mike Tyson will appear Down Bladder Cancer, the July 18 launch event for a campaign to raise awareness about IVANKA TRUMP, at the Pin Down Bladder in a one-man Broadway show, MIKE TYSON: bladder cancer. The charity campaign was developed by Marvin Traub Associates in honor of Cancer event, which featured entertainment by UNDISPUTED TRUTH, directed by Spike Lee. Tickets retail legend Marvin Traub, who died on July 11 of the disease. He was 87. musician Diego Garcia. start at $75. VIP tickets, which include a meet- and-greet and photo with Mr. Tyson after the show, are $300. The production will run at the Longacre Theatre, 220 W. 48th St., between Broadway and Eighth Avenue. To purchase tickets, visit www.telecharge.com, call (212) 239-6200 or (800) 432-7250, or visit the Longacre Theatre. For more information, visit www.tysononbroadway.com.

OPENING FUNDRAISERS WEDNESDAY, AUGUST 1 TUESDAY, JULY 31 BRING IT ON: THE MUSICAL, ARCHIVE Global will host HELP US BUILD A based on a movie about high- HOUSE, a benefit for housing and health in Haiti. school cheerleaders, will run Ticket proceeds will go toward purchasing on Broadway for at least 12 materials to construct a house in Haiti. The event weeks. It is directed by Andy is at 6 p.m. at 632 Hudson St., at Horatio Street. Blankenbuehler. Tickets start at $75. For more information, Performances will be at the contact Hope Gamble at St. James Theatre, 246 W. [email protected]. 44th St., between Broadway 25 Year Alumni Reunion & Anniversary Issue and Eighth Avenue. Tickets THURSDAY, AUGUST 2 start at $32. To purchase Faith Hope Consolo, chairman of Prudential tickets and for more Douglas Elliman’s Retail Group, and Jeffrey On October 15th, Crain’s New York Business will celebrate 25 information, visit Mann, president of Mann Publications, will serve www.bringitonmusical.com. as co-chairs for the TENTH ANNUAL WOMEN OF years of 40s with a special issue followed by a private alumni VALOR AWARDS TEA, which includes an award ceremony for women in the real estate and construction industries. Proceeds will benefit the networking reunion. St. Francis Food Pantries and Shelters. The event is at 11:30 a.m. at the Waldorf-Astoria, 301 Park Ave. Tickets are $350. For more information, call (212) 279-6171 or email [email protected]. —emily laermer ContactC Crain’s to updated your contact informationf ffor our upcoming reunion. Please email or call: [email protected] or (212) 210-0205. MARK YOUR CALENDAR ) 210-0205 FRIDAY, SEPTEMBER 28, TO SUNDAY, SEPTEMBER 30 Tickets are available for the 2012 TRAVEL + LEISURE GLOBAL BAZAAR. The event Host Sponsors: Gold Sponsor: Silver Sponsor: includes exotic art, crafts and performances. A percentage of ticket sales will benefit Room to Read, which focuses on improving literacy and gender equality in education in the developing world. Tickets start at $75. Tickets are available online at www.ticketmaster.com or via phone at (800) 745-3000. The event is at For sponsorship information, please contact Trish Henry at (212) 210-0711 or [email protected]. Lexington Avenue Armory, 68 Lexington Ave., between East 25th and East 26th streets. For more information, visit www.travelandleisure.com.

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