Pressure Mounts to Delay WTC Towers

CNYB 09-22-08 A 1 9/19/2008 8:24 PM Page 1

TOP STORIES WNBC’s newsroom transformation has Magic Johnson, insiders matchmaker worrying extraordinaire PAGE 9 NEW YORK, NEW YORK P. 6 ® Best travel tricks to cut costs, stress; NY’s top airlines VOL. XXIV, NO. 38 WWW.CRAINSNEWYORK.COM SEPTEMBER 22-28, 2008 PRICE: $3.00 REPORT, PAGE 17 Online firm lends AFTER THE WILD RIDE to entrepreneurs shunned by banks WALL STREET ECONOMY SMALL BUSINESS, P. 26 Troubled Money Giant banks Spreading has its third publisher in a year emerge on top pain will cost CORPORATE LADDER, P. 29 from turmoil 90,000 jobs DEAL HUNTER: Tiffany Winbush NEXT WEEK started clipping Boutiques win, too, grocery coupons. Retailers to be hit hard;

NEW targeting M&A business buck ennis tourism may finally weaken INFLUENTIALS BUSINESS LIVES They are newly BY AARON ELSTEIN BY DANIEL MASSEY powerful in a changing Even New Yorkers with city.Meet 25 people a few winners are already beginning to emerge secure jobs are cutting back before lehman bros. reshaping New York out of the debris from one of the most tumul- PAGE 27 went belly up, Merrill tuous weeks in Wall Street history. Lynch & Co. was J.P.Morgan Chase & Co., forced to sell itself, and Bank of America Corp. and MORE CRISIS NEWS: AIG got bailed out, the Citigroup Inc. are poised to deepening financial cri- rule investment banking be- LUXURY RETAIL The boom is sis had already prompt- cause of their easy access to finally over at the highest end ed the owners of The vaults of deposits.At the oth- AIG The man chosen to over- Michael Jordan Steak- er end of the spectrum, bou- haul the giant insurer house to chop more tique firms, including Ever- PAGE 2 than $4 off the price of lindström bekka core Partners, Greenhill & their hamburgers. Co. and Lazard Ltd., are REAL ESTATE Layoffs at “We saw the economics in New York and busily seizing clients and staff securities firms spell lower prices wanted people to have a price point that was from devastated rivals. TECHNOLOGY Ability to hire more acceptable,” says Glazier Group co-owner “Wall Street is going to laid-off workers a boon Penny Glazier, of the new $14.95 offering. AT DEADLINE look like a barbell with a few enormous firms of- The trouble on Wall Street will clearly ripple fering global reach and a lot of small ones that PAGE 3 beyond burgers. Prior to last week’s turmoil, the NEW YORKERS ARE TURNING focus on just one or two things,” says Roger NONPROFITS Worries mount Independent Budget Office had forecast 33,000 TO THE SPIRITS TO CALM Ehrenberg, managing partner at IA Capital as key fundraising season begins Wall Street jobs would disappear in the current their psyches. In-store Partners. “Falling somewhere in between is no PAGE 4 downturn. Now, even more are likely to go. customer traffic at Sherry- longer a viable strategy.” GREG DAVID And since the securities industry drives the lo- Lehmann Wines & Spirits on Meanwhile, the definition of “enormous” has Another cycle or cal economy—the sector accounts for 5% of the East 59th Street is up 23% and expanded. Even Morgan Stanley and Goldman does something worse loom? city’s jobs but as much as 23% of its wages—the delivery volume is up 18% this Sachs might need to find large partners if they PAGE 11 cutbacks will reverberate throughout the five month. Revenues, however, are See GIANT on Page 8 See PAIN on Page 8 flat as people are trading down in price. Red White & Bubbly in Park Slope, Brooklyn, reports a similar trend: People DOWNTOWN who normally buy a $22 bottle are buying one for $16 or $17 instead. Pressure mounts to delay WTC towers THE STATUE OF LIBERTY-ELLIS ISLAND FOUNDATION WILL No need for space now or in four years, LOWDOWN ON LOWER MANHATTAN announce plans this week to say real estate pros, as vacancy rates soar expand the Ellis Island “Just as New York City’s GROUND ZERO OFFICE SPACE Immigration Museum.The verstein is developing at the World economy recovered from IN WORKS/DEVELOPER 9/11, it will recover from expansion, to be done with BY THERESA AGOVINO Trade Center site will be delayed.A 3 towers/Larry Silverstein funding from Bank of collective sigh of relief from many recent events.” –LARRY SILVERSTEIN Freedom Tower America and the Annenberg next week, the Port Authority of in real estate will follow. /Port Authority of NY and NJ Foundation, will allow the New York and New Jersey is wide- In the wake of financial markets’ Total: 8.8 million square feet See AT DEADLINE on Page 2 ly expected to announce that at least mauling last week, sentiment is SQUARE FOOTAGE IN PLAY one of the three towers Larry Sil- shifting in favor of postponing the building of the towers at Ground 4.2 million/Merrill Lynch, bought by BofA Zero. Many believe more time is 4 million/AIG, taken over by 38 needed to absorb the millions of federal government 5 square feet of sublease space des- 3 million/Goldman Sachs, tined to flood the market as bat- moving to new headquarters tered firms cut back. VACANCY RATE: ELECTRONIC EDITION The bottom line is simple, brokers say.New York doesn’t need an- Today: 7.7% 2004: 14% NEWSPAPER

See PRESSURE on Page 8 bloomberg news 71486 01068 0 CNYB 09-22-08 A 2 9/19/2008 7:53 PM Page 1

AFTER THE WILD RIDE AT DEADLINE

Continued from Page 1 2008, roughly the same number museum to broaden its overall as last year. Real estate mission.The museum, which magazines showed the most opened in 1990, focuses on growth of any category, spiking immigration to the U.S. from 44% above 2007’s number, to 1892 through 1954.The 335 titles. Over the past five addition will house new exhibits years, the home magazine that explore immigrants’ arrivals category saw the most growth, after 1954, up to those who are jumping nearly 200%, to 241 still coming today.The size and titles, while news publications cost of the plans will be released saw the sharpest decline, later this week. tumbling 39%, to 46. MORE THAN 3,500 HOME ON FRIDAY, STANDARD & HEALTH AIDES ARE POOR’S LOWERED ITS threatening to walk off their recommendation on shares of LUXE RETAILERS jobs Wednesday if deals cannot bookseller Barnes & Noble to such as Hermès are likely to see sluggish be reached with two home care “sell” from “hold” on continued sales as a result of agencies.The workers, many challenges in the bookselling Wall Street’s woes. of whom earn the minimum market. Shares of Barnes & wage without any benefits or Noble have increased more than vacation, joined 1199 SEIU 40% over the past two months buck ennis four years ago, but have yet and now trade above S&P’s $26 to win their first contracts from target price. Standard & Poor’s Bestcare Inc. or Prestige expressed concern about a Care Inc. continued decline in adult Upscale goes out of style readership levels. EVIDENCE THAT MERE LUXURY RETAIL extravagant purchases—the design- Even before last week, spending DISCOUNTS ARE NO LONGER WORKERS AT VERIZON er handbag for the fall season or the on luxury goods nationwide was enough to propel retailers COMMUNICATIONS VOTED diamond earrings for a special birth- down 4.6% in July over the prior through the latest financial overwhelmingly to ratify a new As Wall St. reels, day—are going to take that cautious year, according to MasterCard crisis, teen retailer Aéropostale contract that protects union jobs sales at retailers like pause,” says Candace Corlett, pres- SpendingPulse, a spending tracker. Inc. was downgraded Friday and maintains employer-paid ident of WSL Strategic Retail. Experts predict that sales will de- from “buy” to “neutral,” as the health care while providing cost Barneys and Tiffany cline even further, and investors back-to-school season in which savings for the company on expected to suffer Downtown blues agreed. Last week, shares of Saks the company usually thrives retirement health care for new upscale departmentstores such were down 4%, while Tiffany shares comes to a close and sales hires. More than 90% of as Saks and Barneys are among the dropped 6%. soften. Michelle Tan, an analyst Verizon’s 65,000 unionized BY ADRIANNE PASQUARELLI retailers that stand to lose the most. On Madison Avenue, one of the with Goldman Sachs, expects to workers voted to accept the The specialty chains that opened lo- most expensive retail corridors in the see Aéropostale’s sales decline three-year deal, which provides luxury retailers,long immune to cations in lower Manhattan in the country,asking rents for some spaces during the holiday shopping a wage increase of 10.87% over the economic cycles that affect their past two years, including French have dropped as much as 14%. season, expected to be the worst the contract term and extends more mainstream brethren,could be luxury jewelry and accessories pur- Some mid- to upper-end stores, in 17 years, according to a recent union recognition to hundreds in for tough times now that the very veyor Hermès, menswear shop like Coach, which has 10 stores in report by TNS Retail Forward. of former MCI technicians at shoppers they specifically cater to— Thomas Pink, BMW and Tiffany Manhattan, may weather the storm Verizon Business.The workers, affluent Wall Street bankers—are & Co, are also at risk. better than the most high-end re- REGIONAL TITLES REMAIN THE who are members of the reeling. “[High-end downtown tenants] tailers. Experts say shoppers could TOP MAGAZINE CATEGORY, Communications Workers of With thousands of investment were specifically counting on that opt to purchase a Coach handbag, according to the new edition of America and the International professionals either out of work or Wall Street market for the male cus- retailing for between $200 and the National Directory of Brotherhood of Electrical facing the prospect of losing their tomer to go out and make sponta- $500, rather than a Prada bowler Magazines, which counted Workers, narrowly averted a jobs as a result of last week’s finan- neous purchases,” says Robin bag at Barneys, which sells for near- 1,126 such titles in print in strike last month. cial sector breakdown, luxury retail- Abrams, a retail broker with real es- ly $2,000. ers expect their customers to put off tate firm Lansco Corp. “Now those any expensive purchases. people are not going to be spending, COMMENTS? THIS WEEK IN CRAIN’S “People who were considering and that will hurt.” [email protected]

GREG DAVID ------11 THE INSIDER------12 CEO has been here before WEEK IN REVIEW ------14 NEIGHBORHOOD AIG as chairman Allstate and Sears Roebuck & Co. of Allstate He’s intensely analytical, having JOURNAL------16 Allstate experience less than five played a key role as chief financial REPORT: months ago, officer in the breakup of the Sears fi- will help in running takes on the nancial empire in the early 1990s. 29 EXECUTIVE TRAVEL ------17 task of largely When he became chief executive failing firm; repaying dismantling of Allstate in 1998, Mr. Liddy un- REAL ESTATE DEALS------23 the country’s dertook a wrenching restructuring $85B loan a priority largest insur- of the insurer’s massive agent force, CLASSIFIEDS ------Edward Liddy 24 er, with oper- requiring employee agents to be- BY STEVE DANIELS SMALL BUSINESS ------26 ations span- come independent contractors and ning the globe and reaching into provide for their own health and re- THE WEEKS AHEAD ------26 in tapping former Allstate Corp. many nooks and crannies of the fi- tirement benefits.After a rocky start Chief Executive Edward Liddy to nancial markets. at the Northbrook, Ill.-based insur- BUSINESS LIVES------27 run American International Group Job No.1 for Mr.Liddy will be en- ance giant, he led Allstate through a CORPORATE LADDER------29 Inc. following the federal govern- suring that taxpayers are repaid on the period of strong earnings growth. ment’s $85 billion bailout of the in- $85 billion, two-year loan the Trea- “I can’t think of anyone else who EXECUTIVE MOVES------30 31 surance giant, U.S. Treasury Secre- sury Department agreed to make in has a tool kit like that,who also hap- BOB LAPE ------31 tary Henry Paulson has chosen order to keep AIG out of bankruptcy pens to be an expert in insurance,” someone he knows well and trusts. and forestall a crippling ripple effect said Peter Crist, chairman of execu- vol. xxiv, no. 38, september 22, 2008—Crain’s New York Business (issn 8756-789x) is published weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Period- After all,Mr.Paulson picked Mr. that could have imperiled many oth- tive search firm Crist/Kolder Asso- icals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address Liddy to join the board of Goldman er financial institutions. ciates in Hinsdale, Ill. changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a Sachs Group Inc.in 2003 when Mr. The job will be immense,but Mr. copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents Paulson ran Goldman. Liddy has shown many of the skills Steve Daniels is a reporter for copyright 2008 by Crain Communications Inc. All rights reserved. Now Mr. Liddy, 62, who retired it will take during previous stints at Crain’s Chicago Business.

2 | Crain’s New York Business | September 22, 2008 CNYB 09-22-08 A 3 9/19/2008 7:54 PM Page 1

AFTER THE WILD RIDE Apartment market in jeopardy MANHATTAN REAL ESTATE ever, now that the much of Wall dropped 22% in the second quarter Street, there may be a TRANSFER: Street is in disarray, that bonus compared with a year earlier, to couple of silver linings Apartment sales money is uncertain. 2,282, while inventory surged 31%, for the real estate sector. have declined Manhattan will feel “Bonuses will be much smaller, to 6,194 units. while inventory and the layoffs will contin- “It [Wall Street] is one Better than elsewhere spiked in recent the pinch as Wall months. ue,” according to Jonathan of our key economic en- first, if the financial in- Street cuts back on Miller, chief executive of gines in the city, both for dustry gets bailed out by bonus money real estate appraisal firm 22% our tax base and demand the government, the Miller Samuel Inc. “The decrease in for residential real estate,” worst of the current cri- extent of this problem is second-quarter Mr. Miller says. “The ’09 sis may be over. Second, BY ELISABETH BUTLER CORDOVA mind-boggling.” sales compared market, and possibly it’s likely the city would with a year 2010,are going to be char- weather a residential as wall street’s financial crisis Manhattan most at risk earlier acterized by lower volume downturn well because it unfolded last week,real estate insid- right now, Manhattan is Source: Miller Samuel Inc. and some weakness in doesn’t have a lot of in- ers predicted that Manhattan’s resi- the most vulnerable bor- price levels.” ventory, despite recent dential market could be dealt a se- ough in the city, says Mr. Miller, Wall Street turmoil might scare increases.

vere blow. whose most recent quarterly report buyers away, at least temporarily. “We don’t have the buck ennis Investment bankers and their indicated sluggish pricing and a de- “People who may have been on supply problem that million-dollar year-end bonuses crease in the number of apartment the fence are more likely to stay there other areas have,” Mr. Heym ob- higher inventory levels than New helped sustain apartment prices sales. The average apartment price now,” says Gregory Heym, chief serves. Markets such as Washing- York City. over the past few years, even as the hit $1.7 million during the second economist at real estate firm Hal- ton and Miami, which have years’ rest of the country experienced quarter, down 3% from the first stead Property.“It’s an uneasy time.” worth of speculative build-outs COMMENTS? double-digit price declines. How- quarter. The number of sales Despite the fallout from Wall that are sitting vacant, have much [email protected] Boom times for lawyers who know bankruptcy PROFESSIONS THE LADDERS.COM, BANKRUPTCY BENEFICIARIES an online job-search service, is expanding. Accountants, others Demand is rising for these professionals: Bankruptcy lawyers will represent hundreds of

buck ennis join the legions hired to handle entities owed money by Lehman Brothers Forensic accountants will comb through computer Lehman’s filing hard drives and cell phone records and untangle Tech welcoming transactions to determine liability BY HILARY POTKEWITZ Legal and financial software consultants will run the programs that sift through and organize massive Wall St. refugees like the cleanup crews that de- amounts of data scended on Texas after Hurricane White-collar criminal defense lawyers will represent Ike,legal and accounting teams be- people who could become targets of investigations TECHNOLOGY Wall Street announced 22,000 lay- gan sifting through the wreckage of offs, and there are thousands more Lehman Brothers shortly after the buck ennis Information to come. firm declared bankruptcy last also be recruited. All are beefing up of M&K Rosenfarb, the forensic In the past seven months, the week.Within minutes,hundreds of their staffs to handle the extra arm of accounting firm Marcum & companies getting city has added 1,100 tech jobs, for a cell phones started chirping, and work. It represents an opportunity Kliegman. total of about 42,700, according to they haven’t stopped. for some law firms to regain a “Most of litigation is about crack at top talent an analysis of state Department of “The ‘BlackBerries of bank- measure of the jobs lost in the past money, and whenever you’re fight- Labor figures by Eastern Consoli- ruptcy’ have been going off for year of Wall Street’s slowdown. ing about money, people need BY AMANDA FUNG dated, a real estate firm. days,” says Denis Cronin, a partner Davis Polk & Wardwell, for ex- forensic accountants,” Mr. Rosen- at law firm Vinson & Elkins. He ample, has several departments farb says. investment banking’s pain could Revenues growing represents a bank that was just that have been working overtime. be technology’s gain. despite an overall economic elected to the seven-member cred- The firm’s transactional lawyers are Adding 60 accountants Information technology profes- slump,the local tech industry has re- itors’ committee overseeing lead counsel to both the Treasury his group has 90 forensic and in- sionals who are losing their jobs on mained relatively healthy—rev- Lehman’s Chapter 11 filing. His Department and the Federal Re- vestigative accountants—the ex- Wall Street may find a new home enues are steadily growing and ven- client is one of Lehman’s largest serve Bank of New York in the $85 perts who delve into laptops, hard among the city’s technology com- ture capital funding is still strong. unsecured creditors. billion rescue of American Interna- drives and BlackBerries to find out panies. Today, most of the city’s tech com- Vinson & Elkins has added five tional Group, and various finance who knew what and when. Mr. Willing to outbid their competi- panies have diversified their client bankruptcy associates to its 25- practice groups are advising Citi- Rosenfarb is hiring at a brisk clip tors, investment banks have been the base and don’t rely only on the finan- lawyer practice in the past five group, which is a trustee for and plans to add 60 accountants by largest employers of information cial services industry,so they are con- months and plans to bring on more Lehman’s bond debt. next summer. technology professionals in the city, tinuing to ramp up staff and expand. by year’s end. Davis Polk is also lead counsel to Other related businesses are which has always made it difficult for TheLadders.com, an employ- Freddie Mac, which the Fed has seeing benefits. tech firms to fill positions. But that ment Web site, expects to add about Largest in history taken over. Lawline.com reported last week situation is already starting to change. 50 employees,pushing its head count “there will be additional hiring “I’ve barely left the office, and that a record number of attorneys “It is a lot easier to hire people in to 300 in Manhattan by the end of by other firms, you can be sure of I’m not even a lawyer,” said a had signed up for its bankruptcy the city [now],” says Gerald Cohen, the year, says Marc Cenedella, who it,” Mr. Cronin says. spokesman for Davis Polk. courses, making it the Web firm’s chief executive of Information founded the company in 2003. Lehman’s bankruptcy, the Lawyers often have accountants busiest time in recent memory, ac- Builders, Manhattan’s largest pri- He adds that he has already hired largest in U.S. history, translates in tow. cording to President David vately held software company. several tech professionals from big into billable hours for lawyers spe- “When there’s business change Schnurman. “There are fewer open positions, banks. cializing in bankruptcy and securi- and big losses, people scramble to and we’re getting better people.” ties. Forensic accountants and legal recover as much as they can,” says COMMENTS? During the first half of this year, COMMENTS? [email protected] and financial software experts will Sam Rosenfarb, managing director [email protected]

September 22, 2008 | Crain’s New York Business | 3 CNYB 09-22-08 A 4 9/19/2008 6:50 PM Page 1

AFTER THE WILD RIDE

Medley Partners, LLC has renewed and expanded its lease to Charities brace 12,438 sf for Wall St. fallout

NONPROFITS “We have to think about new ways of doing business,” says Gor- Corporate, individual don J. Campbell, chief executive of United Way of New York City, who donations will dry up; is planning a town hall meeting with Entire 21st floor of 17,519 sf available corporate and nonprofit leaders to new fundraising figure out ways for charities to sur- Prestigious suites also available from 1,286 sf to 12,769 sf vive and their clients to get the help strategies needed they need. One likely outcome,according to BY MIRIAM KREININ SOUCCAR Mr. Campbell and other experts, is that smaller nonprofits will be for new york’s nonprofits— forced to merge or close down com- which raise about half of their annual pletely. budgets in the last three months of the year—Wall Street’s meltdown Too many unknowns couldn’t have come at a worse time. of course, it is still too early to Though many charities are fac- know how steep the losses will ing direct losses from compa- be. nies like Lehman Brothers, United Way took in $2.5 Merrill Lynch and AIG, million from Merrill fundraising experts say the Lynch employees last biggest cuts are expected to year. But Bank of Ameri- come from individual donors ca’s acquisition of Merrill who either work in the finan- Lynch raises questions cial industry or are simply about future dona- affected by the financial tions from the secu- crisis. rities firm. United “The money that Way is tracking its has emanated from fundraising and Wall Street individu- will modify its als is going to be re- plan to raise $105 stricted going for- million this year if ward,” says Doug need be.

s Bauer, senior vice e “Things are g

president at Rocke- m happening so i

y feller Philanthropy t quickly, it’s hard t

e Advisors. g to get one’s arms So,too,will cor- around it in the porate donations. ‘A good portion short term,” Mr. City Harvest, Campbell says. which delivers ex- of [our funding] Lehman, cess food from which has recent- restaurants and comes from ly made major other businesses to grants to the hunger relief agen- Wall Street Harlem Chil- cies, received dren’s Zone and $100,000 from bonuses’ DonorsChoose, Lehman—one of —Jilly Stephens gave $39 million its top five corpo- City Harvest in corporate and rate donors—over foundation grants the past two years. in the 12 months The nonprofit ended November won’t be able to 2007,according to count on those its Web site. Mer- checks anymore. And executives at rill Lynch provided more than $40 WWW.11WEST19STREET.COM the agency say such losses could mul- million in grants in 2006. Those tiply. City Harvest needs to raise gifts include a $5 million pledge to CHELSEA • FLATIRON • UNION SQUARE $5.7 million from November the Sesame Workshop and a grant through January,with $3 million ex- of more than $300,000 to the Asia FOR LEASING INFORMATION pected to come in December alone. Society. • 26,000 sf A spokesman for Bank of PLEASE CONTACT: Nonprofits likely to merge America says it will honor philan- • Full floor identity “our sense has been that a good thropic commitments already Michael Kaufman portion of that comes from Wall made by Merrill Lynch. Bank of • Newly renovated lobby 212-471-4320 Street bonuses,” says Jilly Stephens, America is the No. 2 corporate executive director of City Harvest. donor in the United States and [email protected] “We’re on the edge of the un- gave away $211 million in cash in • NBI for qualified Tenants known.” 2007. Grant Greenspan Nonprofit executives say they ex- “It’s very early in the process, • Close Proximity to 212-471-4340 pect the fallout to be significant but if you look at our recent histo- Transportation [email protected] enough to change the way the entire ry of mergers, in each case we made industry functions. Just as funding a commitment to honor the legacy from government, corporations and institution’s philanthropic com- individuals is decreasing, the need mitment,” the spokesman says. THE KAUFMAN ORGANIZATION for social services is expected to in- WWW.KAUFMANORGANIZATION.COM crease exponentially. COMMENTS? [email protected]

4 | Crain’s New York Business | September 22, 2008 CN012305 8/15/08 4:10 PM Page 1

In this shifting environment, I just want my business to succeed. But the complexities of consolidating our expenses keep getting in the way. I could use someone to point me in the right direction.

Get the CFO Research Services report and learn about the best practices other companies are using to successfully consolidate spending.

American Express® is always looking for new ways to help businesses like yours. That’s why we’ve made the CFO Research Services report available to you.

TO RECEIVE YOUR COMPLIMENTARY REPORT, OR TO LEARN MORE ABOUT THE CORPORATE CARD, CALL 877-AXP-2892 OR VISIT CORP.AMERICANEXPRESS.COM/MIDSIZE

Meet NYC Comptroller NEW YORK,NEW YORK WILLIAM THOMPSON edited by Valerie Block

With Wall Street in turmoil, New York City Comptrol- ler William Thompson discusses his assessment for New York's economy and its impact on the city budget and its pension fund. He'll also be questioned by Crain's editor Greg David and a second journalist on other topics Magic’s potion works on couple including the unsettled political situation as Mayor Bloomberg considers whether to seek a third term and agic johnson (right) came to town this week to announce a “strategic alliance” Mr. Thompson's own future. with Adecco USA. But the former NBA star already has a more personal partnership under his belt. Last year, when he rehired his DATE: TUESDAY, OCTOBER 21, 2008 M former publicity director, Lisa Meyers (below), he got more than a public TIME: 8:00-8:30A.M. NETWORKING BREAKFAST 8:30-9:30 A.M. PROGRAM relations executive for Magic Johnson Enterprises. VENUE: HILTON NEW YORK Ms. Meyers is now engaged to Magic’s eldest son, Andre, and 1335 Avenue of the Americas pregnant with their child.The former Laker had long been trying to set between 53rd and 54th Streets the two up, but Ms. Meyers resisted, a close friend says, even though COST TO ATTEND: 27-year-old Andre has his dad’s good looks and is being groomed $70 for individual tickets if prepaid by October 14; as chief executive of Magic’s $700 million company. $75 thereafter. $650 for tables of ten if prepaid by October 14; Ms. Meyers, who was a senior vice president $750 thereafter. at the American Cancer Society, eventually

To register go to crainsnewyork.com, or fax your business fell for the scion, who is no spoiled rich kid. card and credit card information to “Thompson Breakfast” Growing up in Michigan, he rarely saw at 212-210-0499 his father. When his dad initially hired him, it was at one of his movie theaters to rip tickets and clean bathrooms.“It smelled really bad,” he recently told ESPN.com.“Let’s just say that not everyone has the best aim.” His dad’s, however, is still spot on. bloomberg news

Kheradpir also unveiled a new through September, according to ‘Suits’ shop application that lets subscribers Media Industry Newsletter, which for bargains control FiOS TV from their cell is an improvement over prior phones, remotely scheduling their performance. after last week’s financial DVRs to record programs or even Condé Nast Portfolio is relying bloodbath, investment bankers lock or shut down service if, say, a on luxury lifestyle advertising. hoping to stay afloat are shopping child is in the house. “My son “We didn’t put all our eggs in the at, gasp, bargain bin Men’s hates that feature,” he said, adding [financial services] basket,” says Wearhouse. High-end menswear that it will be available for free Publisher William Li. boutiques, such as Mark later this year. Some titles could even see Christopher, that sell made-to- short-term gains in financial ads, order shirts and suits are suffering “the same kind you get from appointment cancellations and a Financial titles’ resorts in Cancun every time general slump, but the discounter planning pays there’s a hurricane,” says magazine Long established says it’s thriving. After all, custom consultant Peter Kreisky. “It’s the commitment suits go for nearly $2,500, but financial magazine publishers reassurance category.” Men’s Wearhouse retails most of insist they’re a step ahead of Wall its two-piecers for less than $200. Street’s troubles. “We saw it a year Weiser LLP Certified Public Accountants Wardrobe consultant Alfredo ago,” says Vivek Shah, president of Zagat Webcasts Fernandez at the Men’s Wearhouse Time Inc.’s Fortune|Money dos and don’ts store at 380 Madison Ave. says he Group, whose magazines rely on served a former Lehman Brothers financial services ads. “We focused a local foodie Web site could employee last week. “He was on tech, retail, travel and apparel, help Zagat.com fatten up its video getting fitted for an interview and those categories are all up by offerings. Devour.tv is working on to private clients suit,” Mr. Fernandez says. double digits for us.” a new series for the popular dining New York City Both Fortune and Money are a forum called Eater’s Etiquette. The 135 West 50th Street little better than flat in ad pages first episode, shot at Nobu last New York, NY 10020 FiOS TV takes week, features the upscale eatery’s Tel 212.812.7000 Weiser's Private Client Services Group general manager, Hiro Tahara. Fax 212.375.6888 provides personalized service and technical the screen John Gottfried expertise in all areas of wealth management. BAD CONNECTION , a former Long Island verizon communications has a journalist and co-founder of 3000 Marcus Avenue Our services include: lot riding on its pricey rollout of AMID THE MOST severe market Gourmet Garage, launched Lake Success, NY 11042 • Tax strategies FiOS TV. So last Thursday, turmoil in decades, Vertu Devour.tv in 2007. The Tel 516.488.1200 • Estate and gift planning Shaygan Kheradpir, Verizon’s chief launched its Signature cell “InterNetwork” already produces Fax 516.488.1238 • Cash flow, college funding, and retirement information officer, opened his phone at The Plaza last week. 75 series, including Lecherous Westchester • Wealth management and investment strategies five-bedroom Yorkville The sleek status symbol boasts Libations and Bickering Foodies. 660 White Plains Road Tarrytown, NY 10591 • Insurance planning and analysis apartment to a handful of a sapphire crystal, solid gold Eater’s Etiquette will cover topics Tel 914.333.0555 • Personal accounting and bookkeeping journalists to promote the public innards and a $12,600 price like tipping, wine service and the Fax 914.333.0556 • Entrepreneurial business strategies company’s new cable service. Mr. tag. There’s no camera or music proper way to eat sushi in • Family office services Kheradpir noted that Verizon player—but it is handcrafted. response to questions that come New Jersey had just completed wiring his up on Zagat’s message boards. 399 Thornall Street We work together with our clients to Marisa Tomei was on Edison, NJ 08837 building, at East End Avenue A Zagat spokeswoman says develop customized and integrated solutions hand for the party. Tel 732.549.2800 and East 82nd Street. the firm will post the series to help our clients reach their goals. She didn’t get a Fax 732.549.2898 Over cocktails and passed hors freebie. on its own site if it likes what www.weiserLLP.com d’oeuvres, half a dozen Verizon it sees. executives took turns using the For more information, remote control to flip through Contributors: Erik Engquist, contact at Lisa Osofsky, CPA/PFS, CFP 212.375.6859. show guides and 102 high- Matthew Flamm, Amanda Fung, definition channels. Mr. Adrianne Pasquarelli

6 | Crain’s New York Business | September 22, 2008 Project4 9/16/08 2:28 PM Page 1

Midtown’s Grandest Corporate HQ Opportunity 25,000 - 530,000 SF Available Now

Three high visibility branding opportunities Wraparound terrace with great city views Private executive parking Covered access to subways and Grand Central Terminal Efficient 25,000 rsf floor plates 450 kw tenant emergency generator 450-ton dedicated chiller New building entrance and lobby under development

For leasing information, please contact: Paul N. Glickman [email protected] 212-841-7847 Matthew R. Astrachan [email protected] 212-841-7904 Barry J. Zeller [email protected] 212-841-5913 Steven S. Bauer [email protected] 212-841-7996

www.120ParkHQ.com A FULL COMMISSION COMPUTED AND EARNED IN ACCORDANCE WITH THE RATES AND CONDITIONS OF OUR AGENCY AGREEMENT WITH OUR PRINCIPAL, WHEN RECEIVED FROM OUR PRINCIPAL, WILL BE PAID TO THE COOPERATING BROKER WHO CONSUMMATES A LEASE WHICH IS UNCONDITIONALLY EXECUTED AND DELIVERED BY AND BETWEEN LESSOR AND LESSEE.

IMAGE OF MERCURY AT GRAND CENTRAL TERMINAL®. USED WITH PERMISSION OF THE METROPOLITAN TRANSPORTATION AUTHORITY. CNYB 09-22-08 A 8 9/19/2008 8:25 PM Page 1

AFTER THE WILD RIDE

Evercore snagged a new partner, Giant banks come out on top Jed Sherwindt, a former Citigroup banker who advised on major deals, such as PeopleSoft’s sale to Oracle. Continued from Page 1 which typically depend on short- could conceivably surpass this “We’ve never had a bigger back- are to survive, while midsize outfits term loans. Merrill’s reliance on $82 colossus—and only if the firm ac- log or better quality of business,” like Cowen Group and Jefferies billion of commercial paper and quired Morgan Stanley, according Evercore Chief Executive Roger Group might need to rethink their other unsecured borrowings, which to CreditSights. Altman said at an investor confer- business plans. The firms declined could disappear overnight, is one While the biggest players fight it ence earlier this month. to comment. reason its management acquiesced out, the smaller ones are registering Battle-hardened veterans of For the moment, the nation’s to Bank of America’s takeover offer impressive gains at their expense. crises past form another front-run-

biggest commercial banks are the last week. For example, Morgan Stanley’s lindström bekka ning group. One, former Allstate most obvious victors from last shares plunged a harrowing 27% last CEO Edward Liddy, was called out week’s carnage. 800-pound gorilla week, but Greenhill’s jumped 22% corporate restructuring. Free of the of retirement last week to head True, some shareholders have the combined institution is set on speculation that the boutique massive write-downs that blasted American International Group. long grumbled that giants like J.P. to dominate every facet of Wall bank, founded by a former top Mor- big banks, all can nimbly exploit James Lothian, a finance profes- Morgan, Citi and BofA are simply Street. In addition to boasting gan Stanley banker, would snatch their competitors’ weaknesses. sor at Fordham University and a for- too big, but their vast branch net- 17,000 brokers who manage $1.6 some of that firm’s best people— mer Citibank executive and frater- works have provided each company trillion of client assets, the com- staff and clients. Evercore and Adding star power nity brother of Mr. Altman’s at with more than $700 billion of de- bined BofA-Merrill will rank as the Lazard have also been rallying.Their last week,Manhattan-based advi- Catholic University, thought a bit posits, according to SNL Financial. world’s largest underwriter of stocks shares are up 108% and 38%,respec- sory firm Duff & Phelps Corp. about joining the fray. That gives them a huge advantage in and investment-grade and junk tively, over the past two months. hired John Schrader from Morgan But, Mr. Lothian says, “I’m hap- a world where ready cash is in short bonds,as well as No.2 in merger ad- Those smaller groups specialize Stanley,where he was global head of py doing what I’m doing.” supply,especially as the banking be- visory, CreditSights said last week. in merger advisory and, to a lesser risk management for the securitized hemoths battle brokerage firms, J.P. Morgan is the only one that degree, on money management and products group. COMMENTS? [email protected]

Lynch, which agreed to be bought Lower Manhattan boosters note by Bank of America, leases 4.2 mil- that the impact might not be as se- Pressure mounts to delay WTC lion square feet at the World Finan- vere this time because there’s less cial Center—though it occupies space. In addition to the millions of Continued from Page 1 the second quarter, up nearly 2 per- al Group would come on line, but only 2.6 million square feet of that. square feet lost in the terrorist at- other 6.2 million square feet of of- centage points from the year-earlier those fears faded when the govern- Some of Merrill’s acreage is expect- tacks, over 10 million square feet fice space—certainly not now, and period, according to Cushman & ment bailed out the insurance ed to be unleashed during the con- have been converted to residential possibly not even in four years,when Wakefield Inc. leviathan. solidation. units in the past six years alone. the towers are slated to open. “The question is will we have a The unexpected jump in avail- Still, delaying the introduction “It is terrible for the country that category one or category five” real es- ability will come on top of the of Mr. Silverstein’s towers could eight years later the situation at tate hurricane,says Barry Gosin,chief ‘Space is harder roughly 3 million square feet that ease the latest crisis. The developer Ground Zero isn’t resolved,” says executive of Newmark Knight Frank. Goldman Sachs will let go of next insists that he’s not worried. David Arena, president of Grubb & to fill downtown year when it makes its long-planned “Just as New York City’s econo- Ellis New York. “But from a real es- Federal aid move to a new headquarters in Bat- my recovered from 9/11, it will re- tate perspective, it is a godsend that efforts by the federal government because fewer tery Park City. Leasing all of that cover from recent events,” he said in the towers will be late.” to bail out Wall Street have bright- could be a problem. a statement. Financial services firms lease ened the outlook. When Lehman people want to Exactly when the towers will be about 30% of Manhattan’s office Brothers filed for bankruptcy last Lasting voids completed remains to be seen. The space, and they are shedding it Monday, brokers feared that the in- work there’ “space is harder to fill downtown new timeline is due from the Port quickly. The amount of sublease vestment bank’s entire stock of 3.1 because fewer people want to work Authority next week. Mr. Silver- space on the market is soaring and is million square feet would hit the there and because most of the space stein is contractually obligated to already 25% above the amount market. By Wednesday, Barclays is older,” says Marcus Rayner, a finish the towers by 2013, but that available last year at this time. Group had agreed to purchase parts principal at CresaPartners. deadline will probably be adjusted. The combination of an oversup- of Lehman and keep some workers, But cutbacks loom despite those At the bottom of the last com- Meanwhile, the agency is under ply of space and low demand could as well as its 1.1 million-square-foot reprieves, and many believe the mercial real estate downturn, in way with building the 2.6 million- drive rents down as much as 15% headquarters. downtown market will be especially 2004, lower Manhattan’s vacancy square-foot Freedom Tower. and increase vacancy rates to 9% Similarly, real estate brokers affected. AIG is certain to vacate rate peaked at 14%, while midtown’s over the next year—the highest lev- worried that all 4 million square feet large amounts of space there during stopped at 10%.The rate is now 7.1% COMMENTS? el since 2004. Vacancies hit 7.1% in occupied by American Internation- its restructuring. Similarly, Merrill in midtown and 7.7% downtown [email protected]

national real estate bubble. The av- means the city is no longer as cheap erage apartment price fell to $1.7 as it once was. Pain spreading throughout city million during the second quarter, Economists believe Wall Street down 3% from the first quarter of will survive this mortgage-induced Continued from Page 1 03 caused by the dot-com bust and says C. Warren Moses, chief execu- 2008,according to a report by Miller mess, and a few believe it will do so boroughs. Wall Street salaries aver- exacerbated by the Sept. 11 terrorist tive of The Children’s Aid Society. Samuel Inc. in a smaller and better way,with less age $340,000, or more than five attacks saw 225,000 jobs vanish.The Retailers will be hit hard, partic- The commercial real estate mar- risk-taking. times those in the rest of the city’s stock market crash of October 1987 ularly those in the luxury sector, as ket is also expected to take a beating “We’ve seen the end of Wall economy.Each securities job creates sparked a delayed tailspin that even- out-of-work Wall Streeters trade in the coming year. Brokers say va- Street as we know it,” says James two others, according to the state tually cost the city 329,000 jobs. down to midtier stores from upscale cancy rates, now hovering around Parrott, an economist at the Fiscal comptroller’s office, meaning the Nevertheless, the sting is sure to ones. And brokers are steeling 7%, could hit 9%, the highest level Policy Institute. “It’s radically hurt will be felt everywhere from re- be felt by more than unemployed in- themselves for a slowdown in leas- since 2005. Rents could fall as much downsizing, and it will emerge a lot tail and restaurants to law and ac- vestment bankers. Fewer ing by luxury retail tenants. as 15% by the middle of next year. smaller than it’s been and hopefully counting. Economists have predict- people working means fewer They are preparing to lower The upside is that the lower rents with a different business model ed the city will shed as many as people spending money in 9% rents in order to lure tenants could bring new tenants to Manhat- that’s not self-destructive.” 90,000 jobs during this downturn. stores and restaurants. It PROJECTED into their expanding port- tan and allow others who were con- Mr. Parrott says while such a fu- means fewer New Yorkers vacancy rate for folio of empty spaces. sidering moves to stay. ture would mean smaller profits and Wall Street’s sting commercial real will be buying homes, and estate in “Consumers react to bonuses in the financial sector, it will “there’s no way this is going to be companies will be spending Manhattan news,” says Matthew Katz, Fewer tourists give the city a chance to further devel- painless,” says Marcia Van Wagner, less on office space. The city managing director of Alix- to make matters worse,some op its economy outside the financial the city’s deputy comptroller for and state will reel in fewer tax dol- Partners,an advisory and consulting economists are worried about sector. “Housing will be a little more budget. lars, a certainty that has already re- firm. “Certainly the events of [last tourism, which has continued to set affordable; office space will be a little Of course, the vast government sulted in deep budget cuts. Non- week] were enough to provide some records in New York even as it has more affordable,” he says.“There will bailout—which appeared likely by profits that depended upon shock.” withered in the rest of the country. be a new energy in New York because the end of last week—could help corporate donations will have to Deteriorating confidence and The global nature of the financial Wall Street had captured so much of prevent future job losses in the sec- slash programs and staff and come declining bonuses will also affect crisis may pare travel everywhere. the people’s attention.” tor and keep the numbers from ap- up with new ways to survive. residential real estate sales, even in Some tourists may not want to visit Includes staff contributions. proaching the levels of the last two “We are only expecting bad news Manhattan, which had previously the city at the center of the financial recessions. The downturn of 2001- from corporations that give to us,” been immune to the bursting of the turmoil. And the rebounding dollar COMMENTS? [email protected]

8 | Crain’s New York Business | September 22, 2008 CNYB 09-22-08 A 9 9/19/2008 2:49 PM Page 1

dia Research. Some industry Insiders worry as WNBC observers say that WNBC is seizing an opportunity at the right time.“It’s transforms its newsroom a bold step, and it CHUCK needs to be done,” SCARBOROUGH unsustainable economics of local cal TV ad revenue down by double says television AND SUE SIMMONS: Focus on content TV. If it works here, it will be rolled digits in the first half of the year. news strategist Al veteran WNBC news for new outlets could out to other NBC-owned stations. Once the top-rated station, Primo, who creat- anchors. WNBC has had its special share of ed the Eyewitness Ratings pain compromise quality; pain, particularly in the early News format. “It’s nbc photo: rogelio rodriguez jobs threatened hit by competition from the In- evening. The 5 p.m. to 6 p.m. time not like they’re fix- ternet and cable television,advertis- slot, now divided between a news ing something that isn’t broken.” apart, that’s great,” says one station ing revenue for the New York TV show and Extra, drew an average of But station veterans are con- insider.“But people in the newsroom BY MATTHEW FLAMM market fell 2% in 2007, to $1.5 bil- 37,000 viewers aged 25 to 54 in the cerned about what they’ll be forced are thinking,how will it be possible?” lion, according to BIA Financial first three weeks of September—a to give up and the example WNBC on the seventh floor of 30 Network. Insiders say that the 66% drop from where it was two will set. “If we manage to keep stan- COMMENTS? Rockefeller Center, WNBC’s once weakening economy has driven lo- years ago, according to Nielsen Me- dards up and do work that sets us [email protected] proud newsroom is now a construction site. But as the area is turned into a “content center” suitable for producing news around the clock, the walls aren’t the only things that are coming down. Morale has plummeted as long- time writers and producers have been told to apply for new jobs as “content producers”—with no guar- antee that they’ll be hired or paid the same salary.Some will be fired,since management plans to reduce the head count, insiders say. The changes are coming at a time when the newsroom already feels under siege. Anchors, including Rob Morrison and Lynda Baquero, have been let go or reassigned, top reporters have taken pay cuts, and producers have been told to turn all stories around in a day, a source says. Most worrisome to veterans has been the lack of emphasis on the kind of journalism that will be produced. WNBC has a reputation for breaking news and running inves- tigative pieces developed by beat reporters,but insiders say that nobody is talking about that now. “The initial concern, unan- swered by management, is what happens to the quality,” says a station insider.“There is every indica- tion that there is no longer any interest in breaking stories.” Most advanced newsroom executives at wnbc see it differ- ently. General Manager Tom O’Brien says that the $10 million investment parent company NBC Universal is pouring into the content center will make Channel 4’s news operation the most advanced in the city. He also insists that jour- nalistic quality will only improve as the newsroom is organized to pro- duce content simultaneously for different outlets, including mobile de- vices, screens inside taxicabs and a 24-hour news channel set to debut around the end of the year. Your business Complaints that news director Vickie Burns isn’t focused on the journalism strike him as out of date. success is out there. “That question is coming from an old way of thinking,” Mr. O’Brien says.“News is coming from Is your bank? a lot of areas, and we’ve got people asking for that news to be delivered on a number of platforms.” Commercial Banking A spokeswoman adds that re- us.hsbc.com/success porters will continue to work on in- vestigative pieces and exclusives. The station has no choice but to change. John Wallace, president of NBC Local Media,has said that the content center concept is a response In the United States, products are offered through HSBC Bank USA, N.A. and HSBC National Bank USA. Both banks are Member FDIC. to changing viewing habits and the © 2008 HSBC Bank USA, N.A. All rights reserved.

September 22, 2008 | Crain’s New York Business | 9 CNYB 09-22-08 A 10 9/19/2008 1:57 PM Page 1

VIEWPOINT Political heroes and villains editor in chief Rance Crain publisher, vp Jill R. Kaplan

hile the financial crisis deficit for the next fiscal year is likely to be too low. His EDITORIAL seemed to abate by week’s end, insistence that spending cuts precede any tax increase is not editor Greg David managing editor Robert Hordt no one should think New York only correct, it has won him support around the state. deputy managing editors Valerie Block, is out of the woods.The only Regrettably, just saying the right thing isn’t sufficient. His Erik Ipsen contributing editor question is how much more desire for accommodation and compromise may make him Elizabeth MacBride damage will be done to Wall look good by comparison with his predecessor, but it is not a columnist Alair Townsend senior reporters Theresa Agovino, Street and how that will ripple strategy for success. He needs to use his popularity to force Aaron Elstein, Erik Engquist, Lisa Fickenscher, throughout the city and state economy.The arguments made the Legislature into action. Matthew Flamm, Miriam Kreinin Souccar reporters Barbara Benson, Amanda Fung, on this page over recent months that public spending needs If there are villains in the current crisis they are Assembly Daniel Massey, Adrianne Pasquarelli, W Hilary Potkewitz, Gale Scott, Matthew Sollars to be curbed, tax hikes avoided and efforts intensified to Speaker Shelly Silver and the Republican Senate Majority restaurant critic Bob Lape improve the state’s economic competitiveness are more leaders, whether named Bruno or Skelos. Last spring, they art director Steven Krupinski deputy art directors Carolyn McClain, compelling than ever. ignored the growing Daniel Mednick The wild gyrations also showed again who does—and For all his economic storm clouds staff photographer Buck Ennis copy desk chief Wendy Zuckerman who does not—recognize what is needed. to pass an expansive copy editors Michele Arboit, Mayor Michael Bloomberg showed again that he foresight, the budget on a wing and a Thaddeus Rutkowski research editor Denise Southwood understands what is at stake.The mayor’s prudent mayor has more prayer, increasing www.crainsnewyork.com stewardship of the city budget, with a big assist from the spending more than web producers Kira Bindrim, City Council, has built up a multibillion-dollar surplus to work to do 5%, which was more Elisabeth Butler Cordova ease the expected decline in tax revenues. Early last week, his than they expected EDITORIAL AND ADVERTISING OFFICES 711 Third Ave., New York, NY 10017-5806 comments were right on target, warning that more budget revenues to grow. A editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0259 cuts might be needed but insisting the city was not facing month ago, they agreed Cable craincom nyk disaster. to only minor spending Fax 212.210.0499 Entire contents ©copyright 2008 Crain For all his foresight, the mayor has more work to do. He cuts to deal with the next budget gap. Last week, at a Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP has recently agreed to generous union contracts with the meeting of the Business Council in Buffalo as the Inc., used under license agreement.

police and others that will simply be unaffordable if the investment banking industry was melting down, they could TO SUBSCRIBE: coming recession is deep and prolonged. He is likely to seek have shown more concern than they did. Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. to raise property taxes, a bad move if the real estate market It is too much to expect them to change their tune. Only if www.crainsnewyork.com weakens. And his dalliance with a third term adds political businesspeople—in their role as supporters of the governor— ADVERTISING AND MARKETING uncertainty at just the wrong time. At the least, he needs to make it plain that their campaign contributions depend on a advertising director Jeff Adler senior account managers decide now if he will seek to extend term limits and his new attitude in the Legislature will they reverse course. Cornelius P. Gore, William E. Squitieri tenure. Many people will use the promising signs at the end of commercial real estate sales manager Cory Marks Gov. David Paterson’s months of warning that the state last week to argue for inaction, hoping all will be well.That account executives must deal with a growing budget problem now are shown to would be a disastrous course. Irene Irvill, Courtney McCombs, Anthony Mowad western account manager be exactly right. New York gets 20% of its revenues from Ellen Mazen (Los Angeles) 323.370.2477 Wall Street, and the current projection of a $5 billion budget COMMENTS? [email protected] sales manager, classified print & online John Gallagher newsletter product manager Catherine Evans Gittens sales coordinator, print & online Lulé Haznedari LETTERS TO THE EDITOR sales coordinator Anita Perrino credit Todd J. Masura 313.446.6097 marketing director Amy Crossman marketing manager Jill H. Bottomley marketing coordinator Jenny Mashberg circulation manager Andrea Richardson Readers decide who to put money on assistant circulation manager Rosalie Ford Crain’s readers comment on last vigorated from the bottom up,not because he has one position general manager, interactive week’s crisis and which candidate the top down.” He has the right one day and another one the Marc Minardo web developer, interactive would be best to handle it. philosophy, at least—enough next day. He was against Chris O’Donnell bailouts for the top while leaving the AIG deal before he fa- SCARY TIMES! Who should the little guy to twist in the wind! vored it. Sound familiar? I NEW YORK PRODUCTION production and pre-press director we be voting for in Novem- david arnow would just as soon try Michael Corsi ber, Herbert Hoover or someone new, other than advertising production manager Franklin Roosevelt? MCCAIN ADMITS that economics Sarah Palin. Obama is fine Marilyn DeMilta

julian jackson isn’t his strong suit. His “philos- with me. PUBLISHED BY CRAIN COMMUNICATIONS INC. ophy,” such as it is, consists al- arthur kremer chairman Keith E. Crain THE OBAMA CAMPAIGN sent out most entirely of stale, Reagan- president Rance Crain a notice today that contained era clichés. NOT A CHANCE. Neither of these secretary Merrilee Crain these words: “Our frank cheney guys have worked in the private treasurer Mary Kay Crain economy needs sector ever. executive vp, operations William Morrow senior vp, group publisher Gloria Scoby MCCAIN CAN’T SAVE to be rein- the economy al gabrielli group vp, technology, circulation, manufacturing Robert C. Adams

bloomberg news vice president/production & manufacturing David Kamis WHAT’S COMING UP IN CRAIN’S? chief information officer Paul Dalpiaz corporate circulation director New Real Small Health Top Business Patrick Sheposh Influentials estate business care accounting of law founder G.D. Crain Jr. (1885-1973) report report report report firms report chairman Mrs. G.D. Crain Jr. (1911-1996) Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 Nov. 3

10 | Crain’s New York Business | September 22, 2008 CNYB 09-22-08 A 11 9/19/2008 12:22 PM Page 1

less than feared because of the acquisition of part of its business by Barclays, thousands will lose their jobs at Merrill Lynch after its merger with Bank of America. AIG will shrink substantially. The numbers now look like this on jobs.Total securities losses are on track to reach 40,000. Because the Street never regained all the jobs it lost earlier in the decade, the percentage loss is much greater: 22%, rather than the 17% lost in the last recession. Because Wall Street compensa- tion reached such dizzying heights in the last boom, the decline in income will be greater. Traditionally,Wall Street has ac- counted for 20% of the income earned in the city.In 2006, the share was 23% as bonuses reached $30 billion and average salaries hit $340,000. This year’s bonuses will be tiny john h.john howard compared with last year’s. All this adds up to a more significant and longer recession than even pessimistic observers (like me) had expected. New York has seen these Another cycle? before and recovered. The aftermath, however, may be very different. Wall Street’s model Something worse? of using enormous debt to create leverage to take large risks and pro- duce huge profits no longer appears ounting up the damage to New York from the to be viable. latest, and most severe, chapter in the financial Almost all big securities firms will be owned by giant banks, crisis is depressing. Over the next two years, the some in New York and some not, fallout will be severe in a cyclical way the city has which will use their insured de- seen before. Over the long term, the conse- posits to provide more stable capi- quences could be historic. tal. They will also be subject to C stricter supervision from more vig- For now,begin with the psychic blow to the city’s confidence ilant regulators. This mean less risk-taking and in itself as the center of great insurance compa- much lower earnings. the financial world. ny AIG. As profits decline, Wall Street Two of the six biggest The best of Wall pay will be recalibrated to resemble securities firms, Bear Street, Goldman’s the much lower scales of banking. Stearns and Lehman Henry Paulson, seems The multiplier effect in the New Brothers, have failed. unable to deal with the York economy will shrink. The storied company crisis. Many people postulate that all known for decades as The economic pain this will make New York less prone Merrill Lynch Pierce will be brutal. Before to gut-wrenching economic cycles. Fenner & Smith is now this week,the best guess They argue that the change will be owned by an upstart was that Wall Street good. bank in Charlotte,N.C. GREG would lose about If it happens,however,New York The same fate could be- DAVID 33,000 jobs,in line with will be a prosperous but far less fall the equally proud the losses in 2001-03, wealthy city. New Yorkers may have Morgan Stanley. A which caused a painful a hard time adjusting to that. Midwestern insurance executive has but relatively short downturn. been dispatched to dismantle the While layoffs at Lehman will be COMMENTS? [email protected]

CRAIN’S ONLINE POLL How will the city’s economy be affected by the Wall Street crisis?

354 VOTES The impact will be minimal Date of poll: Sept. 16 8% because of the . A drop in tax city’s diverse revenue from Wall economy Street will cripple 33%. the city’s budget, causing service Layoffs will reduce 59% cuts, tax increases consumers spending, . or both hurting retailers, restaurants and the real estate market bloomberg news

For readers’ comments, see Letters to the Editor on Page 10.

September 22, 2008 | Crain’s New York Business | 11 CNYB 09-22-08 A 12 9/19/2008 2:39 PM Page 1

AFTER THE WILD RIDE Roll tax credit expansion NATIONAL EXPOSURE Guv’s TV blitz THE INSIDER THERE’S NOTHING LIKE A CRISIS to elevate a politician’s councilman David Yassky has profile. Wall Street’s wild week provided just such an by Erik Engquist and Matthew Sollars introduced a bill to triple the city’s opportunity for Gov. David Paterson (right), who 5% film production tax credit introduced himself to audiences nationwide with a and add a 10% credit for blitz of television and radio appearances. He even postproduction expenditures. pre-empted the Bush administration by announcing Most movies return to Los its unprecedented bailout of American International Angeles for postproduction, which Group. How about sharing some of that? the Motion Picture Editors Guild “Paterson seeks to become the face of New York’s calls “an enormous missed people during this crisis, which will last a long time,” ormally, a liberal assemblywoman representing the opportunity” for New York’s film says Hank Sheinkopf. “Smart politics.” West Side would have no problem getting people to industry. New York state tripled its Previously known for his humor and sudden buy $100 tickets to a campaign fundraiser. But Linda tax credit this spring, to 30%. succession of the disgraced Eliot Spitzer, Mr. Mr. Yassky’s bill needs approval N Paterson played the role of economic Rosenthal , who is trying to drum up interest in her Tuesday in Albany. He is expected to run for buck ennis chief executive, making a regulatory evening event at Peter Max’s studio, comptroller in 2009 if term limits are not extended. change to keep AIG afloat until it could grab a lifeline from the Federal says she has encountered an Reserve. unexpected hurdle this year. Mr. Spitzer, in contrast, had dispatched Insurance Superintendent Eric It’s not the Wall Street mess, the Union all the way Dinallo to work the TV circuit when an insurance story rattled markets last jump in the city’s unemployment for Democrats year. Was Mr. Paterson’s airtime strategy designed to elevate his profile? A rate or the general economic spokesman for the governor says, “You’re comparing two different the building administrations.” Exactly. downturn. It’s the Services union plans to Other political ramifications of market turmoil have begun to take competition. “I want commit more than shape. State Senate Democrats are incorporating the Lehman Brothers, to give all my money $250,000 to state Merrill Lynch and AIG disasters into their campaign for control of the to Obama,” would- Senate races this fall. chamber. In a change, all of the Democratic State Sen. Diane Savino says the meltdown “reinforces why be donors have money will go to we need change.” In contrast to Mayor Michael Bloomberg (below) and the been telling her. Democrats. City Council, who saved surpluses, Senate Republicans kept spending, Ms. Ms. Rosenthal 32BJ expects to have Savino says. “They have had their heads in the sand on this for a long time has a response a big impact in the Queens because they’ve borrowed their way out of everything,” she says. “Well, they race between Democratic can’t borrow their way out of this.” Of course, Assembly Democrats are ready.“He raised Councilman Joseph Addabbo and equally to blame. $66 million last CASH state Sen. Serphin Maltese. Back in the city, council members are revisiting the property tax increase month!” says the CHAMPION: The union sent 75 workers to that the mayor floated in June and they rejected. Barack help Mr. Maltese in 2006, and he David Weprin, chairman of the council’s Finance assemblywoman, who Obama’s won by just 600 votes.This year, it Committee, says the increase being eyed for January joined the Legislature popularity is will support Mr. Addabbo with making it tough for would generate $600 million for this fiscal year and s

w mailings and 200 members in 2006.“I’m only e liberals to raise $1.2 billion in fiscal 2010. “Raising property taxes is n working in the district. g campaign funds.

asking for $100.” r becoming a more likely scenario,” he says. “I think the

e b Democrats in six other pivotal

m public would understand that we’re dealing with a

Sometimes it even o races statewide—including o

l crisis.”

works. b Queens Councilman James The Street’s troubles are also affecting the term limits debate. Councilman David Yassky says, “It remains my strong belief that it’s up to the voters to change term limits, but the last week of Wall Street Times Square - The Ultimate catastrophes gives me some pause about replacing Michael Bloomberg, for sure.”

New York Location bloomberg news

Gennaro, who is challenging state progress with Councilman Alan Sen. Frank Padavan—will also get Gerson, whose approval is key to the assistance. project. General Growth hasn’t reduced the height of its planned 495-foot The speaker tower—as Mr. Gerson wants— and term limits saying that the development is not viable without it. the push to extend term limits Vice President Michael is being powered not just by City McNaughton says that he needs to Council members but also by improve his pitch to the Speaker Christine Quinn,some councilman, not the plan itself. insiders say. Ms. Quinn is thought to be worried about her prospects for Eyeing S.I. defeating Rep. Anthony Weiner and council seat City Comptroller William Thompson • Entire 5th floor 13,800 sf in the mayor’s race next year. should Staten Island Councilman • Available December 2008 An extension, now pending in Mike McMahon win his bid for • Work letter available to qualified tenants the council, would delay the next Congress, the race to replace him • 100% commission paid on signing competitive mayoral election to would pit his chief of staff, Kenneth • Across from the new New York Times Building 2013. Mitchell, against Debi Rose,a • 24/7 building access and building security The speaker’s office says her community board member who • Convenient to all transportation position—essentially, that an came within 200 votes of Mr. extension would have to be McMahon in the 2001 Democratic FOR LEASING INFORMATION PLEASE CONTACT: initiated by the mayor—has not primary. Grant Greenspan changed. Other possible hopefuls include Thomas Curitore 212-471-4340 • [email protected] , a former Transportation Department South Street borough commissioner; Rev. impasse Anthony Baker, pastor of St. Philip’s THE KAUFMAN ORGANIZATION Baptist Church; and Rajiv Gowda,a WWW.KAUFMANORGANIZATION.COM the would-be developer of the community board member and civil South Street Seaport has made no engineer.

12 | Crain’s New York Business | September 22, 2008 Project2 9/16/08 2:16 PM Page 1

GHI and HIP announce a new health plan that needs no introduction.

You may think you know us. After all, both GHI and HIP have been covering New Yorkers for more than half a century. What’s new is our joint commitment to work on making things even better. And as the largest health plan based in New York State, we have the doctors, the plans, and the pricing structure to make it happen. We know it isn’t going to be easy. But we’re New Yorkers too, and we’re no stranger to hard work.

The plan that works.

Coverage underwritten by Group Health Incorporated, Health Insurance Plan of Greater New York and HIP Insurance Company of New York.

35693-01.indd 1 9/15/08 4:01:57 PM CNYB 09-22-08 A 14 9/19/2008 2:37 PM Page 1

WEEK IN REVIEW For daily news updates, go to www.crainsnewyork.com

Secure the Cities, will pay for ECONOMIC SPOTLIGHT equipment that detects radioactive material. Suisse payback on auction mess credit suisse group agreed to buy back $548 million in auction- rate securities and pay a $15 million fine to settle a probe into the collapse of the $330 billion market. New York state Attorney General Andrew Cuomo has pressured several institutions into paying for the risky investments. GVA Williams sold, changes moniker toronto-based FirstService Hachette clinches Serena deal Corp. is buying a 65% stake in GVA Williams Real Estate as the FRESH OFF HER THIRD U.S. Open championship, 26-year-old brokerage industry continues to SERENA WILLIAMS (above) sold her memoir to Grand consolidate. GVA Williams will Central Publishing, a division of Hachette Book Group USA. be renamed Williams Real Estate, a FirstService Company.The The yet-untitled book, slated to hit shelves in fall 2009, will purchasing firm already owns be Ms. Williams’ first solo writing project. The publisher is numerous Colliers ABR brokerages Economy Watch said to have paid $1.3 million for the North American rights. around the world.Terms of the deal were not disclosed. The New York area’s inflation rate rose slightly in July and August. Over the Her sister, VENUS WILLIAMS, plans to publish her story next same period, the city’s jobless rate rose, though it stayed below the U.S. rate. summer. HarperCollins is the buyer. Couric lands Palin

JULY ’08 AUGUST ’08 COMPARISON bloomberg news NY area inflation change +0.7% +0.1.% +5.4%1 cbs evening news anchor Katie position.The elder Mr. Bartel will Couric landed the second in- NYC unemployment rate 5.8% 2 $89M hospital hit 5.0% 6.1% continue to serve as chairman of depth network TV interview with NYC employment change n/a n/a n/a3 staten island University the board, focusing on Alaska Gov. Sarah Palin, the 1-NY area inflation rate for the latest 12-month period. 2-U.S. unemployment rate for the Hospital agreed to pay nearly international expansion. Lately, the Republican vice presidential latest month. 3-NYC employment change year to date. $89 million to settle claims that it company has suffered earnings candidate. Ms. Couric will spend defrauded Medicare, Medicaid declines even as revenue has grown. two days with Ms. Palin for and the military’s health insurance footage that will appear later this programs. New York state will get month. ABC’s Charles Gibson NYC Hotel Stats Broadway Stats nearly $15 million; $74 million Con Ed owes $9M handled the first major TV Occupancy and room rate declined Attendance and gross both rose will go to the federal government for blackout interview with Ms. Palin. in July, PKF Consulting data show. during the week that ended Sept. 7, in the historic recovery. Year-to-date averages—at 85.5% according to The Broadway League. the new york Public Service and $296.80, respectively—topped Season-to-date figures topped last Commission ordered OSHA issues fines those for the same period in ’07, year’s results, but by less than 1% McCain gains Consolidated Edison to return $9 for crane collapse which were 84.4% and $275.36. each. ground in NY million to its customers for failing to meet state electricity reliability the occupational safety and sen. barack obama’s lead in standards.The mandate Health Administration cited and the state fell to five stems from an outage fined three contractors in points, down from 18 that affected about connection with the March crane points in June, 137,000 customers collapse in midtown Manhattan according to a Siena on the Upper East that killed seven people. Rapetti Research Institute Side and in the Bronx for Rigging Services Inc., the crane poll of 626 less than an hour in 2007. erector, was penalized $220,000, registered voters. It and Joy Contractors Inc. and showed that Mr. EA takes none Reliance Construction Group Obama now leads Sen. received fines of $74,000 and John McCain (right) video game publisher $19,500, respectively. 46% to 41% among likely Electronic Arts Inc. —from staff reports and voters in New York. ended talks to buy bloomberg news reports bloomberg news Manhattan-based Take-Two Martha vet Gilt-ed Interactive Software Inc. after Capital IQ’s Weekly Deals Report months of courting the smaller online retailer Gilt Groupe rival. Industry insiders suspected TRANSACTION SIZE Inc. hired Susan Lyne, former EA walked away because it would COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE chief executive of Martha Stewart not be able to integrate Take-Two Salesconx Inc. $1.5 Individual investors GCI Living Omnimedia Inc., as its new in time for the vital holiday selling Manhattan CEO. She replaces Gilt co- season. Competitive Power Ventures Inc. n/a Warburg Pincus GCI founder Alexis Maybank, who will Manhattan become chief strategy officer. Ms. PAYING THE Paul Wilmot Communications n/a Fleishman-Hillard Inc. SB M&A Lyne aims to expand Gilt into NYPD got $30M to PRICE: Crane Manhattan (majority unknown stake) categories beyond discounted prevent dirty bomb collapse culprits Syscore Solutions International Inc. n/a Synechron Inc. SB M&A designer clothing. receive fines and citations. Manhattan the u.s. department of The Robot Factory n/a Bachmann Industries Inc., GCI Homeland Security gave the New Manhattan individual investors The Bartel shuffle York Police Department $29.5 Selected deals announced during the week of Sept. 7 for companies headquartered in metro New York. GCI: Growth capital investment represents new money invested in a company for a minori- travelzoo inc. tapped Holger million to develop a system to ty stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing Bartel to take over as chief prevent a radiological or nuclear shares of a company without the participation of a financial buyer. executive Oct. 1, replacing his older attack on the city.The cash, part getty images bekka lindström bekka brother, Ralph Bartel, in the top of an experimental program called

14 | Crain’s New York Business | September 22, 2008 Project2 8/14/08 10:06 AM Page 1

The inside story on a Flat Rate Box. Pack it. Seal it. Ship it. It’s that easy with Priority Mail® Flat Rate Boxes from the U.S. Postal Service.® Choose your size. Now in three sizes, including a new larger size. There’s even a Flat Rate Envelope and a discounted Flat Rate Box for the military. Get low, flat-rate pricing to any state and virtually eliminate weighing packages under 70 pounds. Shipping that works for you. If your shipping company doesn’t offer you this kind of convenience, check out what the Postal Service™ offers. Get details on all of our new products and services at rethinkyourshipping.com/field. The Flat Rate Box. The flat-out easiest way to ship.

It’s time to rethink your shipping. CNYB 09-22-08 A 16 9/18/2008 8:42 PM Page 1

NEIGHBORHOOD JOURNAL New vision for St. George Long-delayed rezoning aims to stimulate Molinaro, who supports the rezoning. “We want to create a town- housing and office construction in S.I. area center atmosphere where people have no need for an automobile.” finally moving forward. The new BY MATTHEW SOLLARS rules will pave the way for the con- City Council to vote

struction of residential towers as tall the plan was approved by the City dept.courtesy of city of planning fter several false as 20 stories, and encourage retail Planning Commission earlier this SKYLINE BY THE SHORE: The S.I. Ferry Terminal, now and in future, will be the hub of St. George. starts—including a and commercial development along month despite objections by some 2005 tweak that most the neighborhood’s main streets. residents, who voiced concerns residents say did more The goal is to design a compact about overdevelopment and other urban environment and a logistical it was really a mishmash.” harm than good—a community centered around the matters.It will go to the City Coun- flow to the area,” says Thomas Along with spurring commercial Asweeping rezoning of Staten Is- Staten Island Ferry Terminal, ex- cil for approval next month. Kerbleski, a local real estate broker development, the rezoning will al- land’s downtown St. George area is plains Borough President James “The new zoning will create an with Casandra Properties. “Before, low large residential development in the area,which has been rebounding recently after years of being largely ignored by retailers and developers. “This is a very clear signal of the re-emergence and ultimate vitality of St. George,” says Joseph Carroll, district manager of Staten Island Community Board 1, which includes the neighborhood. Kamillah Hanks, the executive director of the Downtown Staten Island Council, and a strong backer of the rezoning plan from the get- go, notes that size has its benefits. “We’re all for more density in downtown,”she says.“In order to re- vitalize our retail and commercial LANDMARKED areas, we need more people to use them.” Still, Ms. Hanks does have some regrets.Her efforts to include incen- tives to bolster the neighborhood’s RFR REALTY, LLC IS PROUD TO ANNOUNCE growing arts community went nowhere. THE DESIGNATION OF LANDMARK STATUS TO Opposition quashed david goldfarb, an attorney and a THIS ART-DECO GEM... past president of the St. George Civic Association, fought the new ANOTHER IN OUR PORTFOLIO OF zoning on a number of fronts. He believes city planners failed to do LANDMARK BUILDINGS. enough to prevent a wall of towers from sprouting up in the neighborhood. In the end, the city reduced the bulk of the buildings, but developers can still erect towers up to 200 feet tall—roughly 20 stories. Mr. Goldfarb also pushed for as- surances that the new development would bring with it new schools. Pointing to examples of classroom SUITES OF 1,500 - 3,500 SF AVAILABLE shortages that have cropped up in TOWER FLOOR OF 3,500 SF AVAILABLE newly fashionable neighborhoods across the city, Mr. Goldfarb wanted a provision in the zoning that would firmly tie increases in residential units to the construction of new schools.That proposal,too,was rejected. “Out of seven suggestions that we made, we got one-half of one suggestion approved,” says Mr. Goldfarb. “We still feel the towers are much too big for the neighborhood.” City Councilman Michael McMahon’s recommendations Oliver Katcher fared far better. He had asked the 212-883-0526 city to decrease the heights of the [email protected] towers. Now that the scale of the buildings has been reduced, Mr. www.RFRrealty.com McMahon says he will vote in favor of the plan when it reaches the council floor. “The revised plan seems to be a good meeting of the minds,” says a spokesman for Mr. McMahon.

COMMENTS? [email protected]

16 | Crain’s New York Business | September 22, 2008 CNYB 09-22-08 A 17 9/18/2008 6:16 PM Page 1

EXECUTIVE TRAVEL INSIDE Relocating proves challenging amid real estate meltdown; families resort to cross-country commutes PAGE 21 Top airlines in the New York area, ranked by total passengers PAGE 22 Travelers face worse times ahead Fewer flights, old cars and shabby service besiege road warriors

BY STEVE GARMHAUSEN every week now, New York business travelers are finding out that they can’t fly to yet another city. As the number of airline service cuts grows over the next couple of months, New York City’s connections to some 80 other cities will be severed or curtailed. TRAVEL TACTICS What’s more, the aggravation caused by canceled or delayed flights, shabby First class for Dawn service and shrinking corporate budgets Robertson that are squeezing the life out of trips, is likely to continue for some time. Robert Bielsky grabs “The fall is going to be very rough for hotel business travelers,” says Michael deals Steiner, executive vice president with Jason Olim: Ovation Travel Group, a New York- in his own based travel management firm. cocoon It used to be that business trips were PAGE 18 an enviable perk—a status symbol that reflected an employee’s worth to a company as well as a reprieve from the daily grind at the office. These days, the real grind is in traveling. g Executives have little choice but to adjust. klu dave As one veteran road warrior, Robert Bielsky, who owns See TRAVELERS on Page 18 Execs bunking up to ease tight budgets NYC’s high lodging drop on him, but he is concerned with it that is relatively unusual in “We used to assume that room a room at a Best Western or Shera- about his roommate listening in. the workplace.” sharing was rare,” says an Orbitz ton in midtown—more than three rate is forcing out-of- Visiting New York poses some Mr. Shields isn’t the spokesman. times the $125 a room the company unusual challenges for Mr. Shields, only executive who’s At some small compa- spends in Seattle, Los Angeles or towners to share head of a small Silicon Valley-based found that rooming with a nies, people share quarters Denver. In the past five months, he room keys and more startup.Hotels here are so expensive colleague is too close for 24% routinely; others, like and a colleague have taken about 10 that he shares a room with a col- comfort. Nearly a quarter OF BUSINESS Yieldex, ask employees to three-day trips to New York from league, which has saved his compa- of business travelers be- travelers have forgo private rooms only their home base near San Francisco. BY WENDY DAVIS ny thousands of dollars. But dou- tween the ages of 18 and shared a hotel in New York City, which bling up carries a different kind of 65 say they have been re- room with a has the highest hotel rates Lack of privacy talking on the phone with his cost. quired to bunk with a co- colleague on a in the country. The aver- although he’s saving his firm a wife and children in the bathroom worker on a business trip, business trip age hotel room rate here lot of money, Mr. Shields has not of a hotel room is just one of the Bunking together according to a survey by for the first seven months completely embraced the policy that ways in which Tom Shields tries to “it certainly is weird,” says Mr. Orbitz Worldwide.The online trav- of this year was just under $300, ac- he is responsible for implementing. gain privacy on business trips to Shields, chief executive of Yieldex, el firm commissioned the survey af- cording to PKF Consulting, which “We’re colleagues, but we’re not New York City. which provides Web analytics to ter hearing from a growing number tracks the hotel industry. close friends,” says Mr. Shields. It’s not that he’s afraid someone media companies.“There’s a certain of road warriors about such arrange- Mr. Shields’ company often pays Another way he tries to maintain in the hotel hallway might eaves- amount of intimacy that goes along ments. between $400 and $600 a night for See EXECS on Page 20

September 22, 2008 | Crain’s New York Business | 17 CNYB 09-22-08 A 18 9/18/2008 6:17 PM Page 1

REPORT EXECUTIVE TRAVEL Travelers facing tougher times ahead

Continued from Page 17 Robertson says. “But it’s faster, eas- bigger room or both, he boasts. Manhattan Commercial Realty ier and a lot less stressful.” Such small victories help to com- Co., puts it: “I still have to be where pensate for frustrations beyond his I have to be.” SMALL VICTORIES control. In recent months, Mr. Biel- The following stories detail how sky’s car-rental costs have been ris- three New Yorkers—the president ing and not just because of high fuel of a large apparel company,a real es- Savvy broker prices. tate executive and an entrepreneur scores savings A recent Ovation Travel Group of a startup—are coping with the survey,for example,found that the av- constant pummeling they endure on the road erage cost of renting a car for a day in- when they’re on the road. creased by 5% in the second quarter of ‘At some level, orking the system to 2008, compared with a year ago. SCHEDULING HASSLES get the best prices is Mr. Mr. Bielsky has noticed that the I’ve gotten good Bielsky’s forte. A frequent cars are also older and have higher traveler,W the real estate executive mileage than they did in the past.He at not noticing Busy dealmaker signed up for a program that guaran- worries that the high mileage makes sticks with first tees him a medium-size car from breakdowns more likely. what goes on Thrifty Inc., his regular car-rental “I’m sitting in a rental car now john calabresejohn or business class agency. He is sometimes able to pay that has 20,870 miles on it,” he said around me’ less by renting a car for a full week recently while he was on a business lightreductionshavemade ‘What we used than for the three trip in Fort Meyers, Fla. “That’s —Jason Olim, Freshman Fund it tough for time-starved days he actually ridiculous.” Dawn Robertson to schedule to get in the uses the vehicle. F TECH SOLUTIONS multiple meetings on a business trip When it comes and get an evening flight home. back of the to hotel-room “Before, you could fly into a city, rates,the savvy trav- “In this age of technology, if you fly out the same day and get a lot of plane, we now eler looks online Web guru can’t insulate yourself from travel, work done,”says Ms.Robertson,the for the cheapest relies on you haven’t bought enough technol- recently named president of Sean get in the front’ deals and com- ogy,” says Mr. Olim, who founded John, hip-hop mogul Sean Combs’ —Dawn Robertson, pares them to gadgets and owns Freshman Fund Inc., a clothing company. “Now it’s a chal- Sean John the hotels he Manhattan-based gift registry for lenge to get all the appointments in.” prefers. or internet en- college-savings plans. Ms.Robertson’s solution to these “I then call trepreneur Jason The shoestring budget for his trying times of travel: She flies only the corporate FOlim, the key to year-old startup doesn’t allow him in first or business class. Price is not office of my low-stress business trav- to stay in many hotels. In San Fran- an obstacle for the former head of success finding alternatives to the [preferred] el these days is twofold: cisco, he stays with friends; in Old Navy. big airlines. She has increasingly hotel, ex- ‘My rental car He starts with low expec- Philadelphia, with his parents and But even premium seats are be- flown Virgin America, which has plain that I tations and maintains an high school friends; and in Wash- ing pinched by all the cutbacks. newer airplanes, power outlets at have a track has 20,870 upbeat attitude. On a re- ington, D.C., with his sister. In August, as Ms. Robertson every seat—and touch screens that record with cent Continental flight Mr. Olim uses his frequent-flier hurtled through the sky from San allow passengers to order food and them and ask miles. That’s from Seattle to New status to board planes early and Francisco to New York to start her have it delivered to their seats. The them to York, Mr. Olim kept his avoid the stampede.Once he’s in his new job, a flight attendant handed downside is that Virgin has a limit- knock some- ridiculous’ cool when he found him- seat,he envelops himself in a cocoon her a scrawny meal of cheese, grapes ed number of domestic routes. thing off the self in a seat with a bro- by watching a movie or doing work. and crackers. She’s also given up on shuttle price,” he —Robert Bielsky, ken television screen. “At some level, I’ve gotten good “What we used to get in the back service along the Boston-New says. His ap- Manhattan Commercial Instead of complain- at not noticing what goes on around of the plane, we now get in the front York-Philadelphia corridor. “I proach usu- Realty Co. ing, he simply whipped me,” he says. of the plane,” she says. would have never thought of taking ally nets a out his iPod and watched Ms. Robertson has had some [Amtrak’s] Acela before,” Ms. discount or a a movie. COMMENTS? [email protected]

In February, United Airlines in- THE LONG HAUL stalled flatbed sleepers in business- First-class fliers frustrated class for long-haul flights, added Perks of flying first class versus menus by celebrity chef Charlie business class on long-haul flights Trotter and made 150 hours of en- flown or they’re part of a mileage frequent-flier miles in BA’s Execu- tertainment available for viewing on I 10 TO 30 INCHES more legroom Loyal customers program,say industry experts.That’s tive Club program. 15-inch personal screens. On Luf- lose patience with bad news for the airlines, which High fuel costs have caused air- I 1 TO 2 EXTRA INCHES of seat width thansa, premium passengers enjoy count on these lucrative travelers for lines to cut expenses in a myriad of I LARGER PERSONAL TVs with more such extras as sushi boxes. airlines’ service more than half of their revenues. ways that irritate customers, such as viewing options Virgin Atlantic recently elimi- slashes despite perks “Fliers used to be loyal to a par- downgrading the value of frequent- I EXTENDED seat reclining nated its signature onboard massage ticular airline,”says Jeff Clarke,chief flier miles, tacking on upgrade fees, and manicure service, but passen- SOURCE: SEATGURU.COM executive of Travelport, one of the reducing routes and slashing cus- gers can get haircuts, shaves and BY MARGARET JAWORSKI world’s largest travel-service pro- tomer service. massages at the Cowshed spa at the viders. “But now we’re seeing that Passengers, who pay premium But legroom doesn’t come cheap. Virgin Clubhouse at London’s corporate travel must be reach- they are willing to switch carriers.” prices for prime real estate on a flight, The average lowest midweek busi- Heathrow Airport. Upper Class ing an all-time low if even first- and expect at the very least to be comfort- ness-class ticket on American Air- fares on Virgin Atlantic include a business-class airline passengers, Seeing red able. If the carrier doesn’t meet their lines starts at $4,617, while the price complimentary chauffeur-driven among the most pampered cus- for simon kelly, the chief operat- standards, it’s a deal-breaker. Dane tag for Virgin Atlantic’s more leg- car to or from the airport. tomers, have joined the chorus of ing officer of Story Worldwide, a Steele Green, chief executive of New friendly seats (all of which are busi- Business-class travelers on Amer- complainers. global marketing agency, the in- York-based Steele Luxury Travel, ness class) is about $7,140. The in- ican’s Boeing 767 nonstop service Their mounting dissatisfaction flight experience is satisfying won’t be parking his 6 feet 2 inch dustry average for a first-class New from New York to San Francisco,Los concerns a number of issues,includ- enough.But what makes him see red frame in Delta Air Lines’ domestic York-London seat is $10,000. Angeles and Miami can now surf the ing inadequate legroom on long is the “unfriendly and inflexible” first-class cabin again soon.When he Internet and check e-mail via broad- flights, discourteous customer serv- ticketing experience, particularly flew from Los Angeles to New York Luxe amenities cushion high fares band service onboard. Delta plans to ice,pricey tickets and stingy mileage when he has to change a flight.The on the airline in July, the experience to compensate for some of the ar- install broadband service in 133 jets programs. frustration is so great, says Mr. Kel- left him aggravated.“My knees could eas of service they’re eliminating,air- this fall, and Virgin America expects As a result, these big spenders are ly,who flies every six weeks between literally touch the seat in front of me,” lines are offering over-the-top to have an Internet system in place by now more likely to shop around for New York and London on British he says.“Honestly,I don’t care if their amenities. Whether it helps the car- the end of the year. their flights than stick with an airline Airways, that he’d switch airlines if seats are made out of cloth or riers gain back goodwill remains to because it’s the carrier they’ve always he hadn’t already accrued so many leather,”he adds.“Give me legroom.” be seen. COMMENTS? [email protected]

18 | Crain’s New York Business | September 22, 2008 CN012061 5/27/08 3:17 PM Page 1 CNYB 09-22-08 A 20 9/18/2008 6:18 PM Page 1

REPORT Execs double up to cut costs

Continued from Page 17 some privacy is by changing his clothes in the bathroom. But prob- TWO FOR THE ROAD lems can arise in these situations,es- AS CORPORATE TRAVEL BUDGETS GET SLASHED, one of the pecially when colleagues lack com- casualties is the solo cab ride from the airport. mon sense or are otherwise More car services are being asked to pick up several inconsiderate. executives from the same company whose flights arrive around Intrepid travelers the same time. Catherine Chaulet, senior vice president of BostonCoach, one new york-based executive which provides international sedan and limousine service, says said he has shared a room with a col- that a dozen of her company’s large clients—up from six a year league on just one occasion, but it routinely arrange for travelers to share rides was so unpleasant that he would ago— . Everyone from junior never do it again.He did not want to executives to high-level managers are asked to do so, she adds. be identified or disclose the name of Arranging for joint transportation from the major airports in the northeast to his employer, a small firm, because hotels or offices slices the cost of those rides in half. Typically, a trip from an he says the incident was embarrass- airport to a city center in the company’s major northeastern markets—Boston, ing for him. New York, Philadelphia and Washington, D.C.—ranges from $50 to $200. On a short trip to Las Vegas, he But ride-sharing can pose problems. “We’ve had situations where bunked with his former boss, who is employees are not aware that they have to share a ride,” says Ms. Chaulet. openly gay. “We try to avoid that as much as possible.” “He cracked what I presumed — WENDY DAVIS

was a joke,but it made me unbeliev- istockphoto ably uncomfortable. He said, ‘Hey, do you want to push the beds to- invoicing system, everyone in the go,maintains that rooming with col- gether?’ ” company shares rooms on business leagues isn’t a hardship because he After replying ‘No,’the executive trips to cut down on expenses. enjoys his co-workers’ company. left the room. “I proceeded to stay “When you travel with three or out as late as I possibly could. All In good company four people you actually like, you three nights, I didn’t come back to “every time we travel, we have a end up spending time with them Manhattan • Grand Central the room until 3 in the morning.” budget and would rather spend that anyway,” he says. 1-800-367-7701 Surprisingly, there are some in- money on fun things rather than on “At this point, I think it would be trepid travelers who don’t mind the hotel rooms,” says Saul Colt, a mar- strange for me to have a room to my- F G P S, Take Note. loss of privacy on the road. keting executive at the firm. self.” At the Toronto-based startup Mr. Colt, who travels at least FreshBooks,which offers an online- twice a month to New York or Chica- COMMENTS? [email protected]

WHOLE NEW MEANING TO

DOUBLE 15 HOURLY DEPARTURES POINTS — TO — FOR A LIMITED TIME. WASHINGTON, DC DOUBLE 10 CONVENIENCE DAILY DEPARTURES — TO — ALL THE TIME. BOSTON

You don’t have to work hard to earn double points this fall.

Because now through December 12th, Amtrak Guest Rewards®

members will earn double points on all trains, all travel.

Be sure to register at Amtrakguestrewards.com/90808. With “I’VE BEEN double points you’re ready to make the ride twice as nice. WORKING ON THE RAILROAD.”

AMTRAK.COM

Must be an Amtrak Guest Rewards member and register for this offer. To do so, go to Amtrakguestrewards.com/90808 or call 1-800-307-5000 (option 2) and enter registration code 90808. Qualifying trips must be taken between September 15 and December 12, 2008. Limit of two qualifying trips per day (one roundtrip or two one-ways). Cancelled or refunded reservations/tickets will be deemed ineligible. Members must include their membership number when making reservations. Amtrak, Acela, Acela Express and Amtrak Guest Rewards are registered service marks of the National Railroad Passenger Corporation. CNYB 09-22-08 A 21 9/18/2008 6:19 PM Page 1

REPORT EXECUTIVE TRAVEL

commuted between New York and Phoenix, but being away from his A new kind of business trip: home wife and two young sons was too stressful for the family. He found they cannot sell. Instead of meeting of alleviating problems transferees rental tenants for the Phoenix house Housing slump with clients,making sales calls or at- face. Some firms offer a guaranteed and is renting in the New York area. and cross-country tending conventions, these execu- buyout, purchasing the executive’s He’s seen his equity wiped out. tives are rushing to the airport to get home, but the housing meltdown “I owe more on the house than commuting put home. has made many firms shy away from it’s worth,” he says. stress on execs “I want to be able to focus com- such deals. pletely and work full-time on this AIG, the multinational insurer A happy ending job opportunity,” says Mr. Doran; based in New York, has added a real mr. doran has been luckier. He re- BY ROBERT ROSENBERG instead, he complains, his travel estate appraisal to its relocation cently found a buyer for his Seattle every weekend is interfering with process, providing an estimate even home, though only after pricing the when joe doran accepted the job his new position. before the employee can accept the home below market value. After six as chief executive of Media6- Many companies fund their new new job offer. months of weekly trips home, he is Degrees Inc. in April, he expected a hires’trips home and sometimes even After three failed attempts to sell in the process of moving his family certain amount of travel and disrup- pay for families to visit the relocated his home in Phoenix, Andy Ernst, a to the East Coast. tion in his life. employee; they also help with the regional vice president for Ajilon His advice to executives shut- The 41-year-old former Mi- process of selling a home. But there’s Professional Staffing in New York tling back and forth? “Don’t do red- crosoft executive needed to relocate just so much a company can do. City,has no illusions about what his eyes—I’ve done too many of them from Seattle to New York with his Mr. Doran’s employer, a Man- home is worth. Mr. Ernst trans- for everybody.” wife and children. hattan-based social-network adver- ferred to New York from Phoenix in What he didn’t foresee, however, tising technology startup, is espe- April 2007. For three months, he COMMENTS? [email protected] was being caught between collaps- cially flexible and generous.It covers ing real estate markets on two coasts. his bi-coastal commuting costs, Seattle’s housing market, vibrant ‘Don’t do the red- brought his family to New York to until May, suddenly took a dive. Al- visit and allows him to work from his though Mr. Doran got two offers on eye—I’ve done Seattle home. his house,they fell through when the The worst part, says Mr. Doran, buyers could not secure financing. too many of them is leaving his family behind. “The Meanwhile, banks wouldn’t lend to kids dread Sunday when I pack up him the money to buy in the New for everybody’ and leave.” York area while he still owned a Joe Doran house in Seattle. — Family affair Mr. Doran is now bouncing be- the economic downturn and tween cities while his family re- real estate slump have placed unique mains on the West Coast. strains on such executives. “When “I am flying out to New York you separate families for weeks at a Sunday night on the red-eye and tion firms,a growing number of em- time, [it is bound] to affect produc- Is it possible to flying back to Seattle on Thursday ployees who have been transferred tivity,” says Sylvia Ehrlich, founder night,” he says. from one state to another are flying of the Intrepid New Yorker, a Man- Mr. Doran is not alone in his back and forth to see their families, hattan-based relocation firm. actually look forward predicament. According to reloca- who continue to live in the homes Companies have different ways to three all-day, round-the-clock meetings?

Yes. W hether you’re brainstorming the next level in your corporate evolution or planning your next steps on the road to success, Doral Arrowwood oers the amenities, facilities and people to make hard work almost something to look forward to. Our award-winning property is less than an hour from Manhattan, making it the perfect destination for your next meeting. To #nd out more, go to DoralArrowwood.com or call us toll-free at 1-866-428-9739.

975 Anderson Hill Road • Rye Brook, NY • 10573

September 22, 2008 | Crain’s New York Business | 21 CNYB 09-22-08 A 22 9/18/2008 6:19 PM Page 1

REPORT EXECUTIVE TRAVEL New York Area’s Top Airlines Ranked by total passengers

2008 2008 2008 2008 2008 total % change domestic international 2008 % change domestic international Rank Airline passengers from 2007 passengers passengers total flights from 2007 flights flights bloomberg news Airline Fuel Consumption 1 Continental Airlines 21,671,683 +2.1% 14,524,460 7,147,223 177,016 +0.8% 128,469 48,547 and Cost 2 JetBlue Airways 14,881,344 -1.6% 13,997,239 884,105 138,361 +6.5% 130,118 8,243 Domestic jet fuel prices have reached 3 American Airlines 14,185,272 -0.4% 10,223,287 3,961,985 99,944 -0.2% 77,377 22,567 $121 a barrel, costing airlines $22.8 billion 4 Delta Air Lines 11,233,282 +10.7% 8,009,346 3,223,936 84,691 +11.4% 63,493 21,198 so far this year. 5 Continental Express 4,294,513 -8.9% 3,770,900 523,613 119,095 -8.4% 104,091 15,004 Cost per Consumption Cost Gallon 6 United Airlines 3,578,999 -7.9% 3,578,999 0 34,045 -4.4% 34,045 0 (in millions of gallons) (in millions) (dollars) 7 US Airways 3,202,230 +18.1% 3,187,637 14,593 35,286 +12.6% 35,126 160 DOMESTIC 8 Northwest Airlines 2,755,349 +5.5% 2,667,654 87,695 25,955 -0.2% 25,300 655 2008 7,508.0 $22,793.5 $3.04 9 Comair 2,499,999 +0.2% 2,499,999 0 68,095 -3.1% 68,095 0 Change over -0.02% 57.5% 57.6% 2007 10 American Eagle 1,787,424 -12.2% 1,459,976 327,448 64,442 -9.1% 52,483 11,959 1,739,745 INTERNATIONAL 11 AirTran Airways +21.9% 1,739,745 0 19,141 +17.6% 19,141 0 2008 3,264.5 $10,568.7 $3.24 12 British Airways 1,692,052 +4.8% 0 1,692,052 8,240 +2.7% 0 8,240 Change over +4.4% +69.9% +62.7% 13 Virgin Atlantic Airways 1,025,125 +2.8% 0 1,025,125 4,293 -0.2% 0 4,293 2007 14 Lufthansa 993,368 +6.9% 0 993,368 5,172 -1.1% 0 5,172 TOTAL 15 US Airways Express: Air Wisconsin 984,932 +95.8% 984,932 0 29,305 +85.9% 29,305 0 2008 10,771.6 $33,362.2 $3.10 16 Air France 966,017 -0.2% 0 966,017 4,066 +3.5% 0 4,066 Change over +1.3% +61.2% +59.2% 2007 17 Air Canada 944,770 -5.1% 0 944,770 13,882 -1.2% 0 13,882 Figures for 2007 and 2008 are through July. International column 18 Spirit Airlines 940,826 +1.6% 940,826 0 7,607 -7.1% 7,607 0 represents jet fuel costs outside of the U.S. Source: Bureau of Transportation Statistics 19 Delta Shuttle 891,686 -19.1% 891,686 0 16,933 -2.1% 16,933 0 20 Delta Connection: Mesa-Freedom 751,334 +81.6% 751,334 0 21,618 +13.7% 21,618 0 On-Time Performance 21 El Al Israel Airlines 639,271 +4.2% 0 639,271 2,128 +9.5% 0 2,128 This year, on-time arrivals are less com- 22 Alitalia Airlines 603,746 -6.1% 0 603,746 2,863 +2.5% 0 2,863 monplace at La Guardia airport, compared with Newark and JFK airports. 23 US Airways Express: Piedmont Airlines 570,045 +3.0% 570,045 0 26,615 -2.9% 26,615 0 24 Emirates Airlines & Sky Cargo 492,679 +14.4% 0 492,679 2,005 +3.5% 0 2,005 25 Air Jamaica 487,694 +2.9% 0 487,694 3,394 +0.9% 0 3,394 26 Aer Lingus 478,357 -7.7% 0 478,357 2,051 -2.3% 0 2,051 27 Cathay Pacific Airways 471,029 +31.0% 0 471,029 1,914 +31.3% 0 1,914 28 KLM Royal Dutch Airlines 464,198 -10.7% 0 464,198 1,812 -7.4% 0 1,812 29 Air India 445,224 +10.4% 0 445,224 2,384 +66.7% 0 2,384 30 Virgin America 440,678 n/m 440,678 0 4,312 n/m 4,312 0 31 Midwest Airlines 422,772 -21.9% 422,772 0 6,560 -22.2% 6,560 0 32 Korean Air Lines 397,021 +10.2% 0 397,021 1,464 +1.5% 0 1,464 33 Swiss International Air Lines 375,505 +5.5% 0 375,505 2,761 +2.4% 0 2,761 34 US Airways Express: Chautauqua Airlines 355,614 -63.3% 355,614 0 11,114 -64.1% 11,114 0 35 Continental Express: Colgan Air 354,137 n/m 354,137 0 6,886 n/m 6,886 0 36 Iberia Airlines of Spain 342,709 +1.8% 0 342,709 1,326 0.0% 0 1,326 ATA Airlines 305,253 -54.9% 294,626 10,627 2,095 -61.1% 2,026 69 A flight is considered delayed if it arrives at the gate 15 minutes or 37 more after the scheduled arrival time as reflected in the computer- ized reservation system. Figures for 2008 are through July. 38 SAS AB 302,889 +12.4% 0 302,889 1,386 +4.2% 0 1,386

bekka lindström bekka Source: Bureau of Transportation Statistics 39 Delta Connect: Shuttle America 301,359 -8.3% 301,359 0 7,283 -10.3% 7,283 0 291,673 Airport International Travelers 40 Japan Airlines +16.2% 0 291,673 1,682 +16.7% 0 1,682 41 US Airways Express: Colgan Air 288,020 -4.1% 288,020 0 22,669 -8.9% 22,669 0 Number of international passengers traveling through NYC airports in 2008. 42 Singapore Airlines 285,562 -1.8% 0 285,562 1,462 +0.3% 0 1,462 43 Air Canada Jazz 278,565 +12.1% 0 278,565 7,756 +13.0% 0 7,756 1.2M La Guardia 44 Avianca 258,145 +5.0% 0 258,145 1,738 +0.7% 0 1,738 244,116 Newark Liberty 45 Tam Brazilian Airlines +39.7% 0 244,116 1,464 +30.7% 0 1,464 11.2M International 46 Lot Polish Airlines 242,267 -1.7% 0 242,267 1,218 -0.5% 0 1,218 47 Frontier Airlines 238,921 +6.4% 238,921 0 2,080 +4.1% 2,080 0 John F. Kennedy 22.3M International 48 Jet Airways 237,362 n/m 0 237,362 1,160 n/m 0 1,160 49 US Airways Express: Mesa Airlines 231,563 +26.7% 231,563 0 3,208 +22.3% 3,208 0 Combined data on arrivals and departures for airlines flying into and out of John F. Kennedy International, La Guardia and Newark 50 Aeromexico Airlines 224,765 +2.3% 0 224,765 2,256 -4.9% 0 2,256 Liberty International airports. Figures are for 12 months ended June 30. Combined data on arrivals and departures for airlines flying into and out of John F. Kennedy International, La Guardia and Newark Liberty International airports for the 12 months ended June 30. n/m Not Source: Port Authority of NY and NJ meaningful. Source: Port Authority of New York and New Jersey, with additional research by Denise Southwood and Maia Blume

22 | Crain’s New York Business | September 22, 2008 CNYB 09-22-08 A 23 9/18/2008 6:20 PM Page 1

REAL ESTATE DEALS

dled the transaction for Dabroes. Business center firm leases space —theresa agovino Accidental discovery London-based CB Richard Ellis Inc., negotiated Time Warner Center opened four for Sapir. years ago. Real estate insiders esti- leads to lease Regus Group —theresa agovino mate asking rent in the area at about $275 a square foot. the west village is about to be- to open fourth “All the employees are experi- come even more cosmopolitan. In downtown location A shoe in enced marathon or long-distance December, fusion eatery Ritz Asia for East Side runners,” says Michael O’Neill, the will open at 189 Bleecker St., at Mac- Cushman & Wakefield broker who Dougal Street. lobal business cen- the upper east side is gearing up represented the tenant.“It’s a differ- The owners of the restaurant, ter operator Regus for marathon Sunday with a new ent experience than shopping at a which will offer sushi specialties, as Group will open its running-shoe shop. Athletic appar- Foot Locker.” He noted that the well as Chinese, Thai and Korean 20th Manhattan loca- el and footwear retailer the Prince- neighborhood is an untapped mar- dishes, recently signed a 12-year tion—and fourth ton Running Co. recently signed a ket for an apparel and footwear shop, lease for 1,100 square feet on the Gdowntown—at 100 Church St. in De- 10-year lease for 6,870 square feet noting that it has only one small ground floor.The deal also includes cember. The London-based firm on the ground floor and lower level sneaker retailer,on East 72nd Street. a 950-square-foot basement. Ask- signed a 15-year deal for roughly of 1059 Third Ave.,between East 62nd Princeton Running hopes to ing rent was $196 a square foot. 22,400 square feet, about 34% of the and East 63rd streets. open for business before the ING “We weren’t even thinking about eighth floor of the building, between New York City Marathon on Nov.2. Manhattan until we passed by this 1095 SIXTH AVE. will be Dabroes’ first home. Park Place and Barclay Street. Ask- The landlord, 1059 Battaglia Real- space,” says Alice Lin, who co-owns ing rent was $48 a square foot. ty, was represented in-house by Ritz Asia with her husband, I-Ling Michael Berretta, vice president Joana Battaglia. 40% of the tower’s 24th floor and to Lin. “It’s near New York University of business development for Regus, —adrianne pasquarelli move in December. Asking rent for and a younger generation that will says the company was attracted to the prebuilt office suite was $135 a have more time to adapt to the fu- the location because of its proximi- square foot. sion concept.” ty to Goldman Sachs’ new head- Hedge fund Robert Alexander, chairman of This is the first Manhattan loca- quarters and to the World Trade picks first home the tristate region for CB Richard tion for the Lins, who also own fu- Center site. Regus is also comfort- Ellis, and colleague Zachary Free- sion spots in Brooklyn and Thorn- able with the landlord, The Sapir dabroes management,a fledgling man represented the landlord, The wood, N.Y. Organization, which owns another 1059 THIRD is Princeton Running’s new site. hedge fund, signed a five-year lease Blackstone Group. The building is Lydia Wong of Buchbinder & building that houses one of its cen- for 12,200 square feet at 1095 Sixth undergoing a two-year, $275 mil- Warren was the tenant broker,while ters, Mr. Berretta says. This will be the Pennsylvania- Ave., between West 41st and West lion renovation that includes a new William Abramson, also at Buch- Regus was represented by based company’s second Manhattan 42nd streets. Dabroes, founded by lobby and elevators. binder & Warren, negotiated for Richard Rosenhaus of Rosenhaus location. Its small flagship at the former executives at Caxton Associ- Andrew Sachs and Bill Levitsky landlord Celestial Seven. Real Estate. Brad Gerla, a broker at Shops at Columbus Circle in the ates, is expected to occupy about of Cushman & Wakefield Inc. han- —adrianne pasquarelli

Business Money Market With a WaMu Business Money Market account, your cash will be busy earning a competitive rate and you’ll still have access to it. You can also enjoy Free Business Checking and a free .00% WaMu Business Debit MasterCard® with the Easy Savings™ rebate program. Or you can lock-in 4 APY a great rate on a WaMu CD. So, with your money working harder, maybe you can finally take an hour for lunch yourself. To learn more from our Small Business Specialists, stop by your local For balances of $25,000 and above. WaMu, call 1-800-374-4646 or visit wamu.com/business.

Business Money Market: As of 9/5/2008, the Annual Percentage Yield (APY) is 4.00% for balances of $25,000 and above. To be elig ible, Business Money Market must be opened with $10,000 in new money. Business checking account required. The APYs and interest rates for all balance tiers are variable and may change daily at our discretion. Fees may reduce earnings. We may change APYs and rates or make different changes for some, but not all accounts of this type. Above promotional rates are not available with rate bonus or other promotional offers. Non-WaMu ATM and foreign transaction fees may apply. Access subject to transaction limits. Ask financial center or call 1-800-788-7000 for current tiers/rates. Available in Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, New Jersey, New York and Texas. Offer available for a limited time at our financial centers (not over the telephone or Internet). Certain other restrictions and conditions apply. Deposits at Washington Mutual are FDIC insured. MasterCard Easy Savings is a trademark of MasterCard International Incorporated.

September 22, 2008 | Crain’s New York Business | 23 nb38p24-26cls.qxp 9/18/08 11:15 AM Page 24

INVESTMENT OPPORTUNITY PUBLIC & LEGAL NOTICES Hospitality Operator seeks an investor to partner with to fund the purchase REQUEST FOR PROPOSALS Notice of Qualification of Goldman Sachs and redevelopment of an 18th centu- Real Estate Mezzanine Partners PMD ESC ry hotel in the Irish countryside. For Lincoln Center Development Project, Inc. Advertisement for Bid 09/08/08 Fund, L.P. Authority filed with Secy. of more immediate information please Sealed bids for Lincoln - Center Redevelopment. Package 6B - 65th Street Transportation Improvement Project (TIP) will be received by State of N.Y. (SSNY) on 7/17/08. Office email [email protected] the Turner Construction Company, 375 Hudson Street - 6th Floor, New York, New York, 10014, on behalf of Lincoln Center Development location: NY County. LP formed in or tel 718 706 6926. Project, Inc. on November 7, 2008. Sealed bids will be publicly opened and read. Each bid must be prepared and submitted in accordance Delaware (DE) on 6/2/08. SSNY designat- with the Instructions to Bidders and must be accompanied by a bid bond in the amount of 5% of the bid value. ed as agent of LP upon whom process Package 6B 65th Street TIP proposes to narrow the West 65th Street roadway, widen the sidewalks along with related lighting, traffic sig- against it may be served. SSNY shall mail nals, tree planting and utility work. process to: 85 Broad St., NY, NY 10004. REAL ESTATE DE address of LP: 1209 Orange St., Prospective Bidders are advised of the following Bid Packages: Wilmington, DE 19801. Name/address of Bid Package # 6B - General Site Construction COMMERCIAL each genl. ptr. available from SSNY. Cert. The scope of work includes: demolition of sidewalks and roadway pavement, existing trees removal, construction of new sidewalks and of LP filed with DE Secy. of State, P.O. associated finishes, reconstruction of roadway, new footings for “Video” blades, relocation of catch basins and hydrants, new benches, trees Box 898, Dover, DE 19903. Purpose: any Brooklyn • Coney Island with associated growing medium and elements, street signals, as well as maintenance and protection of traffic. lawful activity. 3.2 Acre site Zoned M1-2 on Anticipated cost: between and $3.6 M. and $ 4.4 M Neptune Ave, in the heart of Bid Package # 6B - Electrical Notice of Qualification of SCOA Residential, LLC. Authority filed with NY Coney Island. Can build up to The scope of work includes: demolition of existing and installation of new exterior street lighting fixtures and associated power, bench 279,000 sq. ft. of Dept. of State on 8/7/08. Office location: lighting and power, demolition of existing and installation of new traffic signals, “Video” blades power and telecommunication conduits. NY County. Principal business addr.: 600 Retail/Hotel/Office, etc. - or can Anticipated cost: between and $ 600 K and $ 800 K 3rd Ave., NY, NY 10016. LLC formed in DE lease as an industrial site. This project involves phasing and logistical considerations dictated by a fully operational performing arts campus, thus work procedures on 9/22/98. NY Sec. of State designated as Tremendous location and will be governed by the Rules and Regulations and supplementary general conditions included in the bidding documents. agent of LLC upon whom process against exposure. Owners invite The project schedule is February, 2009 through March, 2010. it may be served and shall mail process to: proposals - brokers protected All successful bidders will be required to provide a performance bond in the amount of 100% of the bid value and a payment bond as follows: c/o CT Corporation System, 111 8th Ave., Steel Equities - 516-576-3165 (1) 50% of the contract price if the contract price is not more than $1,000,000 NY, NY 10011, regd. agt. upon whom process may be served. DE addr. of LLC: (2) 40% of the contract price if the contract price is more than $1,000,000 but not more than $5,000,000. 1209 Orange St., Wilmington, DE 19801. (3) $2,500,000 if the contract price is more than $5,000,000 Arts. of Org. filed with DE Sec. of State, This Contract is subject to the Federal Transit Administration (FTA) requirements, including the Disadvantaged Business Enterprise (DBE) Townsend Bldg., Dover, DE 19901. requirements. DBE goal is 11%. Purpose: any lawful activity. Interested bidders are strongly encouraged to submit Vendex applications to the Mayors Office of Contracts as Vendex is a contract requirement. There will be an optional Site Walk through and a Pre-Bid Conference, suggested but not mandatory, for all interested bidders to be held at Notice of Formation of SOUTH BEDFORD the field offices of Turner Construction, 175 West 62nd Street (Damrosch Park), New York, NY 10023 on October 06, 2008 from 1:30 pm ORAL & MAXILLOFACIAL SURGERY to 3:00 p.m. PLLC, a Professional LLC. Arts. of Org. filed with the SSNY on 05/16/08. Office Bid documents will be available beginning on September 29, 2008 at: location: NY County, the county was BPI Reprographics amended to Westchester on 08/25/08. TELECOMUNICATIONS 11 Broadway, New York, New York 10004 SSNY has been designated as agent upon Phone: 212-514-8010 whom process against it may be served. Fax: 212-514-8038 SSNY shall mail a copy of process to: Attention: Irwin Sherman Jason Baker, 81 Pheasant Run, Millwood, Please call to place an order before pickup. The cost of the bid documents is $75.00 and is refundable in accordance with instructions NY 10546. Purpose: To Practice The included in the bid documents. Profession Of Dentistry. Bid Requests for Information (RFIs) shall be submitted in writing prior to the end of business on October 20, 2008 to: NOTICE OF FORMATION OF REGISTERED Turner Construction Company LIMITED LIABILITY PARTNERSHIP. 375 Hudson Street, 6th floor NAME: DICKLER AND ROTH, LLP. New York, NY 10014 Certificate of Registration was filed with Attn: Keith Finerty the Secretary of State of New York [email protected] (SSNY) on 08/01/08. Office location: New For Assistance pertaining to this Advertisement, contact Alden Maragoto at 212-229-6457. York County. SSNY has been designated as agent of the LLP upon whom process against it may be served. SSNY shall mail THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY Requests for Bids OPERATION OF THREE (3) a copy of process to the LLP, 19 Fulton MOBILE FOOD UNITS AND THE Street, Suite 402, New York, New York REQUEST FOR PROPOSALS FOR PERFORMANCE OF EXPERT PROFESSIONAL 10038, which is also the location of the ADVISORY SERVICES - RECORDS RETENTION SCHEDULE UPDATES RENOVATION, OPERATION & MANAGEMENT OF A PARKING LOT, partnership. Purpose: For the practice of The Port Authority of New York and New Jersey is seeking to identify firms interested SNACK BAR & BEACH SHOP AT the profession of Law. in responding to a Request for Proposals to provide professional advisory services MANHATTAN BEACH, BROOKLYN to update the Authority’s records retention schedule. These services shall generally THE FUTURES GROUP IT LLC, a domes- All bids submitted in response to this Request for Bids consist of performing a comprehensive review and update of the general retention tic Limited Liability Company (LLC) filed (“RFB”) must be submitted no later than Monday, with the Sec of State of NY on 2-5-08. NY schedules for the Authority and the Port Authority Trans-Hudson Corporation (PATH) October 27, 2008 at 3:00 p.m. Parks will hold a to ensure that the retention periods are in line with current best records management Office location: New York County. SSNY recommended bidder meeting on Friday, October 3, is designated as agent upon whom practices as well as with Authority business requirements, historical needs, and 2008 at 11:00 a.m. at the parking lot entrance at legal requirements for retention of records. Oriental Blvd. and Irwin St. in Brooklyn. All interested process against the LLC may be served. parties are urged to attend. SSNY shall mail a copy of any process The RFP and its associated documents can be downloaded directly at against the LLC served upon him/her to PUBLIC & LEGAL http://www.panynj.gov/DoingBusinessWith/contractors/html/current.php#prof_ad or For more information, contact: Joel Metlen, Senior Project The LLC, 11679 Sunrise View Ln., you may request a copy via e-mail to: [email protected]. Please reference RFP Manager, NYC Parks & Recreation, Division of Revenue and Wellington, FL 33647. General purposes. NOTICES Number: 16491 in the subject line on all requests and include the following information Concessions, 830 Fifth Avenue, the Arsenal-Central Park, Room 407, New York, NY 10065 or call (212) 360-1397 or Notice of Formation of 550 Watkins Street in your e-mail: Firm name, contact person, e-mail address, mailing address and Name: JDY HOME, LLC Art. Of Org. Filed telephone number. If you have any technical problems accessing the bid documents to download the RFB, visit http://www.nycgovparks.org/ Managers LLC. Arts. of Org. filed with NY sub_opportunities/business_ops/index.php?view_page= Sec. Of State of NY 7/9/08. Off. Loc.: New online, email us a [email protected] or call (212) 435-3905 for assistance. Dept. of State on 9/8/08. Office location: con_listing” and, after logging in, click on the “download” link York Co. SSNY designated as agent upon NY County. Sec. of State designated as It is currently anticipated that proposals shall be due by 2:00 PM on October 6, that appears adjacent to the RFB’s description. You can whom process against it may be served. agent of LLC upon whom process against 2008 or as otherwise indicated in the document. Responses must have the RFP Number also email him at [email protected]. SSNY to mail copy of process to THE LLC, it may be served and shall mail process to and full legal name of the proposing firm clearly indicated on the outside package. TELECOMMUNICATION DEVICE FOR THE DEAF (TDD) 295 5th Avenue., Ste. 1616, NY, NY the principal business addr.: c/o CPC Send Proposal(s) to: The Port Authority of NY & NJ, Attn: Bid/RFP Custodian, 212-504-4115 10016. Purpose: Any lawful act or activity. Procurement Department, One Madison Avenue, 7th Floor, New York, NY 10010. Resources, Inc., 28 E. 28th St., 9th Fl., NY, Notice of Formation of The Artifice Group NY 10016. Purpose: any lawful activity. Notice of Qualification of Maximus A VALID PHOTO ID IS REQUIRED TO GAIN ACCESS INTO THE BUILDING, IF LLC. Arts. of Org. filed with NY Dept. of Multimedia International LLC. Authority Notice of Qualification of Selectinvest YOU ARE HAND DELIVERING YOUR PROPOSAL. State on 5/12/08. Office location: NY filed with NY Dept. of State on 8/19/08. MultiStrategy Enhanced LP. Authority filed County. Sec. of State designated as agent Office location: NY County. LLC formed in with Secy. of State of NY (SSNY) on Notice of Formation of J.K. AGENCY LLC. Notice of Formation of FREE OUR of LLC upon whom process against it may NV on 4/23/08. NY Sec. of State designat- 07/30/08. Office location: New York Arts. of Org. filed with Secy. of State of CHILDREN THE FILM LLC. Arts. of Org. be served and shall mail process to the ed as agent of LLC upon whom process County. LP formed in Delaware (DE) on N.Y. (SSNY) on 4/18/08. Office location: filed with Secy. of State of NY (SSNY) principal business address: 236 E. 13th St., against it may be served and shall mail 07/09/08. Principal office of LP: 30 NY County. SSNY designated as agent of on 8/7/08. Office location: NY County. #25, NY, NY 10003. Purpose: any lawful process to: c/o CT Corporation System, Rockefeller Plaza, Suite 2800, New York, LLC upon whom process against it may SSNY designated as agent of LLC upon purpose. 111 8th Ave., NY, NY 10011, regd. agt. NY 10112. SSNY designated as agent of be served. SSNY shall mail process to: whom process against it may be upon whom process may be served. LP upon whom process against it may be Jeffrey Spielsinger, 226 W. 47th St., 3rd served. SSNY shall mail process to: Notice of Qualification of Exquisite Principal office addr.: 1520 W. Altorfer Dr., served. SSNY shall mail process to: c/o Fl., NY, NY 10036. Purpose: any lawful 215 W. 101st St., #3C, NY, NY 10025. Planning, LLC. Authority filed with NY Peoria, IL 61615. Arts. of Org. filed with UBPAM (GP) LLC, Attn: David G. Logan, activity. Purpose: any lawful activity. Dept. of State on 11/7/07. Office location: NV Sec. of State, 202 N. Carson St., 30 Rockefeller Plaza, Suite 2800, New NY County. LLC formed in DE on Carson City, NV. Purpose: any lawful activity. York, NY 10112, registered agent upon Notice of Formation of Creare, LLC. Arts. NOTICE OF FORMATION of LORENCMD, 10/31/07. NY Sec. of State designated as whom process may be served. Arts. of of Org. filed with Secy. of State of N.Y. LLC. Arts. Of Org. filed with Secy. Of State agent of LLC upon whom process against Org. filed with Harriet Smith Windsor, (SSNY) on June 19, 2008. Office location: of N.Y. (SSNY) on 5/29/08. Office location: it may be served and shall mail process to To place Secretary of State of the State of New York County. SSNY designated as New York County. SSNY designated as the principal business address: 2306 Delaware, Division of Corporations, John agent of LLC upon whom process against agent of LLC upon whom process against Dabis Ct., Edgewater, NJ 07020. DE addr. your classified ad G. Townsend Bldg., Federal & Duke of it may be served. SSNY shall mail process it may be served. SSNY shall mail process of LLC: 615 S. Dupont Hwy., Dover, DE York Streets, Dover, DE 19901. Purpose: to: The LLC, Rottenberg Lipman Rich, to: National Registered Agents, Inc. 19901. Arts. of Org. filed with DE Sec. of call John Gallagher To invest in and/or trade securities and/or P.C., 369 Lexington Avenue, New York, NY Principal business location: 983 Park Ave, State, 401 Federal St., Dover, DE 19901. @ 212-210-0189 other financial instruments. 10017. Purpose: any lawful activity. NY, NY 10028. Purpose: any lawful activity. Purpose: any lawful activity.

24 | Crain’s New York Business | September 22, 2008 nb38p24-26cls.qxp 9/18/08 11:16 AM Page 25

PUBLIC & LEGAL NOTICES

Notice of Formation of Three Eyed Labs, NOTICE OF QUALIFICATION OF 65TH Notice of Formation of Bayrock/Jackson NOTICE OF FORMATION of Micro Office Notice of Qualification of 80 WEP-107 LLC. Arts. of Org. filed with Secy. of State PLACE, LLC. Application for Authority Jamaica LLC. Arts. of Org. filed with Secy. Solutions 4 LLC. Arts. Of Org. filed with LLC. Authority filed with Secy. of State of of NY (SSNY) on 08/04/08. Office location: filed with the Secretary of State of New of State of N.Y. (SSNY) on 8/15/08. Office Secy. Of State of N.Y. (SSNY) on 5/8/06. NY (SSNY) on 08/19/08. Office location: New York County. Principal office of LLC: York on June 12, 2008. N.Y. Office location: NY County. SSNY designated as Office location: New York County. SSNY New York County. LLC formed in Delaware 309 West 99th Street, #5C, New York, NY Location: New York County. LLC formed agent of LLC upon whom process against designated as agent of LLC upon whom (DE) on 07/30/08. SSNY designated as 10025. SSNY designated as agent of LLC in Nevada on April 8, 2008. SSNY has it may be served. SSNY shall mail process process against it may be served. SSNY agent of LLC upon whom process against upon whom process against it may be been designated as agent of LLC upon to: c/o Bayrock Real Estate Partners LLC, shall mail process to: 122 West 27th Street, it may be served. SSNY shall mail process served. SSNY shall mail process to: Brian process against it may be served. The 725 Fifth Ave., 24th Fl., NY, NY 10022. 10th Fl., NY, NY 10001. Principal business to Meister Seelig & Fein, LLP, c/o Matthew Chirls, 309 West 99th Street, #5C, New York, P.O. address to which the SSNY shall mail Purpose: any lawful activity. location: 122 West 27th Street, 10th Fl., NY, E. Kasindorf, Esq., 2 Grand Central Tower, NY 10025. Purpose: Any lawful activity. a copy of any process against the LLC NY 10001. Purpose: Any lawful activity. 140 E. 45th St., 19th Fl., NY, NY 10017. served upon him is C/O the LLC: NOTICE OF FORMATION OF LIMITED LIA- Arts. of Org. filed with Secy. of State of Notice of Formation of Elmer Smathers, Salvatore Favia; 6933 Exeter Street, Forest BILITY COMPANY. NAME: LAND ZONE Notice of Formation of FIFTH ON THE the State of DE, Div. of Corporations, 401 LLC. Arts. of Org. filed with NY Dept. of Hills, NY 11375. A copy of the Articles of LLC. Articles of Organization were filed PARK LLC. Arts. of Org. filed with Secy. of Federal St., Ste. 4, Dover, DE 19901. State on 7/25/08. Office location: NY Organization with all amendments thereto with the Secretary of State of New York State of N.Y. (SSNY) on 6/10/04. Office Purpose: Any lawful activity. County. Principal business addr.: c/o shall be provided upon request. Such (SSNY) on 08/20/08. Office location: New location: NY County. SSNY designated as Notice of Qualification of SOUND POINT Sarah G. Rubin, JPMorgan Chase Bank, request should be sent to Salvatore Favia York County. SSNY has been designated agent of LLC upon whom process against OPPORTUNITIES GP, LLC. Authority filed N.A., 345 Park Ave., NY, NY 10154. Sec. at the above address. The Principal as agent of the LLC upon whom process it may be served. SSNY shall mail process of State designated as agent of LLC upon Business Address of the LLC is: 1645 against it may be served. SSNY shall mail with Secy. of State of NY (SSNY) on to: 37 W. 65th St., 2nd Fl., NY, NY 10023. 08/20/08. Office location: New York whom process against it may be served Village Center Circle, Ste. 170, Las Vegas, a copy of process to the LLC, c/o Berliner Purpose: any lawful activity. and shall mail process to: CT Corporation NV 89134. Purpose of LLC: Real Estate. & Pilson, Esqs., 80 Cutter Mill Road, Suite County. LLC formed in Delaware (DE) on System, 111 8th Ave., NY, NY 10011. 411, Great Neck, New York 11021. Notice of Formation of TERZETTO LLC, a 07/31/08. Principal office of LLC: 623 Character: Investment, real estate devel- Notice of Qualification of 73-77 West Purpose: For any lawful purpose. domestic LLC. Arts. of Org. filed with the Fifth Avenue, New York, NY 10022. SSNY opment and oil and gas development. 132nd Street Holdings, LLC. Authority SSNY on 04/25/08. Office location: NY designated as agent of LLC upon whom Notice of Qualification of Renaissance process against it may be served. SSNY filed with NY Dept. of State on 8/12/08. County. SSNY has been designated as Notice of Formation of PENYEACH 43 Futures Fund Access LLC. Authority filed shall mail process to Stephen J. Ketchum, Office location: NY County. Principal busi- agent upon whom process against the LLC. Arts. of Org. filed with Secy. of State with NY Dept. of State on 9/3/08. Office 623 Fifth Avenue, New York, NY 10022. ness addr.: 110 E. 59th St., 20th Fl., NY, LLC may be served. SSNY shall mail a of NY (SSNY) on 8/28/2008. Office loca- NY 10022. LLC formed in DE on 8/7/08. location: NY County. Principal business Arts. of Org. filed with Delaware Secretary copy of process to: 1627 Broadway, NY, tion: New York County. SSNY designated NY Sec. of State designated as agent of addr.: 225 Liberty St., 7th Fl., NY, NY of State, Corporations Division, First and NY 10019. Purpose: Any Lawful Purpose. as agent of LLC upon whom process LLC upon whom process against it may 10281. LLC formed in DE on 11/13/07. Federal Street, Wilmington, DE 19801. NY Sec. of State designated as agent of against it may be served. SSNY shall mail be served and shall mail process to: CT Notice of Qualification of Wriston Capital Purpose: Any lawful activity. LLC upon whom process against it may process to the LLC, c/o Elisabeth M. Corporation System, 111 8th Ave., NY, NY Management, LP. Authority filed with be served and shall mail process to: CT Notice of Qualification of Cyrus Access Kovac, Esq., 90 Park Ave., Ste. 1710, NY, 10011, regd. agt. upon whom process Secy. of State of NY (SSNY) on 9/3/2008. Corporation System, 111 8th Ave., NY, NY LLC. Authority filed with NY Dept. of State NY 10016. Purpose: Any lawful activity. may be served. DE addr. of LLC: 1209 Office location: New York County. LP 10011, regd. agt. upon whom process on 9/2/08. Office location: NY County. Orange St., Wilmington, DE 19801. Arts. formed in Delaware (DE) on 8/28/2008. may be served. DE addr. of LLC: c/o The Principal business addr.: 225 Liberty St., Notice of Formation of Payal Arts of Org. filed with DE Sec. of State, 401 Principal office of LP: 230 Park Ave., 15th Corporation Trust Co., 1209 Orange St., 7th Fl., NY, NY 10281. LLC formed in DE International, LLC. Arts. of Org. filed with Federal St., Dover, DE 19901. Purpose: Fl. , NY, NY 10169. SSNY designated as Wilmington, DE 19801. Arts. of Org. filed on 9/12/01. NY Sec. of State designated as NY Dept. of State on 8/13/08. Office loca- any lawful activity. agent of LP upon whom process against it with DE Sec. of State, PO Box 898, Dover, agent of LLC upon whom process against tion: NY County. Sec. of State designated may be served. SSNY shall mail process Notice of Qualification of York Access LLC. DE 19903. Purpose: any lawful activity. it may be served and shall mail process to: as agent of LLC upon whom process to the LP, Attn: Stephen Brown at the Authority filed with NY Dept. of State on CT Corporation System, 111 8th Ave., NY, against it may be served and shall mail principal office of the LP. Arts. of Org. 9/2/08. Office location: NY County. Notice of Formation of 119 Development NY 10011, regd. agt. upon whom process process to: c/o Bharati Parekh, 10 E. Lee filed with Secy. of State of DE, 401 Principal business addr.: 225 Liberty St., LLC. Arts. of Org. filed with Secy. of State may be served. DE addr. of LLC: c/o The St., Unit 809, Baltimore, MD 21202. Federal St., Ste. 4, Dover, DE 19901. 7th Fl., NY, NY 10281. LLC formed in DE of NY (SSNY) on 5/29/2002. Office loca- Corporation Trust Co., 1209 Orange St., Purpose: any lawful activity. Purpose: Any lawful activity. on 9/12/01. NY Sec. of State designated as tion: NY County. SSNY designated as Wilmington, DE 19801. Arts. of Org. filed Notice of Formation of a Professional agent of LLC upon whom process against agent of LLC upon whom process against Notice of Formation of a Limited Liability with DE Sec. of State, PO Box 898, Dover, Service Limited Liability Company (PLLC) it may be served and shall mail process to: it may be served. SSNY shall mail process Company (LLC): Name: HARLEM TORCH DE 19903. Purpose: any lawful activity. Name: KB DENTAL PARTNERS, LLC. Articles CT Corporation System, 111 8th Ave., NY, to: The LLC, c/o K & R Realty MAGAZINE, LLC Articles of Organization Notice of Qualification of BlackRock of Organization filed by the Department of NY 10011, regd. agt. upon whom process Management, Inc., 207 E. 94th St., NY, filed with the Secretary of State of New Global Horizons I L.P. Authority filed with State of New York on: 8/19/2008. Office may be served. DE addr. of LLC: c/o The NY 10128. Term: until 12/31/2052. York (SSNY) on 5/01/08. Office location: NY Dept. of State on 10/20/06. Office location: County of New York. Corporation Trust Co., 1209 Orange St., Purpose: any lawful activity. New York County. SSNY has been desig- location: NY County. LP formed in DE on Purpose: Dentistry Wilmington, DE 19801. Arts. of Org. filed Notice of Qualification of Blackstone nated as agent of the LLC upon whom 5/11/93. NY Sec. of State designated as Secretary of State of New York (SSNY) with DE Sec. of State, PO Box 898, Dover, Management Associates VI L.L.C. process againt it may be served. SSNY agent of LP upon whom process against it designated as agent of PLLC upon whom DE 19903. Purpose: any lawful activity. Authority filed with NY Dept. of State on shall mail a copy of process to: C/O may be served and shall mail process to process against it may be served. SSNY 5/2/08. Office location: NY County. LLC HARLEM TORCH MAGAZINE, LLC, 1980 the principal business address: 40 E. shall mail copy of process to: c/o Notice of Qualification of GS Mount Kellett formed in DE on 12/18/07. NY Sec. of Madison Avenue, New York, NY 10035. 52nd St., NY, NY 10022. DE addr. of LP: Englewood Management, LLC, 19 Capital Partners Access Fund, L.P. State designated as agent of LLC upon Purpose: Any Lawful Purpose. c/o The Corporation Trust Co., 1209 Beekman Street, New York, NY 10038 Authority filed with Secy. of State of N.Y. (SSNY) on 7/25/08. Office location: NY whom process against it may be served Orange St., Wilmington, DE 19801. and shall mail process to the principal Notice of Qualification of Landmark Value NOTICE OF FORMATION OF LIMITED LIA- County. LP formed in Delaware (DE) on Name/addr. of genl. ptr. available from NY business address of the LLC: c/o The Access LLC. Authority filed with NY Dept. BILITY COMPANY. NAME: E & M MEDIA 7/17/08. SSNY designated as agent of LP Sec. of State. Cert. of LP filed with DE Blackstone Group, 345 Park Ave., NY, NY of State on 9/2/08. Office location: NY HOLDINGS, LLC. Articles of Organization upon whom process against it may be Sec. of State, P.O. Box 898, Dover, DE 10154. Regd. agt. upon whom process County. Principal business addr.: 225 were filed with the Secretary of State of served. SSNY shall mail process to: 85 Liberty St., 7th Fl., NY, NY 10281. LLC 19903. Purpose: any lawful activity. Broad St., NY, NY 10004. DE address of may be served: CT Corporation System, New York (SSNY) on 08/06/08. Office 111 8th Ave., NY, NY 10011. DE addr. of formed in DE on 9/16/05. NY Sec. of State Notice of Formation of Devil’s Playground, location: New York County. SSNY has LP: 2711 Centerville Rd., Ste. 400, designated as agent of LLC upon whom Wilmington, DE 19808. Name/address of LLC: c/o The Corporation Trust Co., 1209 LLC. Arts Of Org. filed with Secy. of State been designated as agent of the LLC upon Orange St., Wilmington, DE 19801. Arts. process against it may be served and N.Y. (SSNY) on 07/11/2008. Office loca- whom process against it may be served. each genl. ptr. available from SSNY. Cert. shall mail process to: CT Corporation of LP filed with DE Secy. of State, of Org. filed with DE Sec. of State, tion: New York County. SSNY designated SSNY shall mail a copy of process to the Townsend Bldg., Dover, DE 19901. System, 111 8th Ave., NY, NY 10011, as agent of LLC upon whom process Townsend Bldg., Dover, DE 19901. regd. agt. upon whom process may be LLC, c/o Michael Medico, c/o Impart Purpose: any lawful activity. against it may be served. SSNY shall mail Purpose: any lawful activity. served. DE addr. of LLC: c/o The Media Advertising, 462 7th Avenue, 8th process to:c/o Cohen & Sprung, LLC, NOTICE OF FORMATION OF LIMITED LIA- Corporation Trust Co., 1209 Orange St., Floor, New York, New York 10018. Notice of Formation of Walton Building 1250 Union Turnpike, New Hyde Park, NY BILITY COMPANY. The name of the limited Wilmington, DE 19801. Arts. of Org. filed Purpose: For any lawful purpose. Associates, LLC. Arts. of Org. filed with 11040. Purpose: any lawful activity. NY Dept. of State on 7/1/08. Office loca- liability company is Anne Bezamat LLC with DE Sec. of State, PO Box 898, Dover, Notice of Qualification of Getty Images tion: NY County. Principal business addr.: (“LLC”). LLC’s Articles of Organization was DE 19903. Purpose: any lawful activity. Luxembourg S.a r.l. Authority filed with NOTICE OF FORMATION of Coaching For 104 W. 70th St., NY, NY 10023. Sec. of filed with NYS Dept of State on 9/4/08. NY Dept. of State on 7/30/08. Office loca- Notice of Qualification of Halcyon Access Success, LLC. Arts. of Org. filed with the State designated as agent of LLC upon LLC’s office is located in NY County. NYS tion: NY County. LLC formed in The Grand III LLC. Authority filed with NY Dept. of Secy. of State of N.Y. (SSNY) on 9/16/08. whom process against it may be served Secretary of State (“SOS”) has been des- Duchy of Luxembourg on 6/20/08. NY State on 9/2/08. Office location: NY Office location: New York County. SSNY and shall mail process to: Steven Ebert, ignated LLC’s agent upon whom process Sec. of State designated as agent of LLC County. Principal business addr.: 225 designated as agent of LLC upon whom Esq., Ebert & Associates, LLC, 350 5th against LLC may be served and SOS shall upon whom process against it may be Liberty St., 7th Fl., NY, NY 10281. LLC process against it may be served. SSNY Ave., Ste., 4011, NY, NY 10118, regd. agt. mail a copy of any process against LLC served and shall mail process to: CT formed in DE on 5/10/05. NY Sec. of State shall mail process to principal business upon whom process may be served. served upon SOS to LLC, c/o Anne Corporation System, 111 8th Ave., NY, NY designated as agent of LLC upon whom location: 345 East 73rd St. # 8J, NY, NY Purpose: any lawful activity. Bezamat, 885 Park Ave, NY, NY10021. LLC’s 10011, regd. agt. upon whom process purpose is to engage in any lawful act. process against it may be served and shall 10021. Purpose Any lawful activity. may be served. Luxembourg addr. of LLC: NOTICE OF QUALIFICATION OF 1870 mail process to: CT Corporation System, 1087791 w.o 8-10 rue Mathias Hardt, L-1030 MADISON LLC. Application for Authority Name of Foreign LLC: UHURU CAPITAL 111 8th Ave., NY, NY 10011, regd. agt. Notice of Formation of Cooper Square Luxembourg, Grand Duchy of filed with the Secretary of State of New MANAGEMENT LLC. App. for Auth. filed upon whom process may be served. DE Contractors, LLC. Arts. of Org. filed with Luxembourg. Arts. of Org. filed with Trade York on June 12, 2008. N.Y. Office NY Dept. of State: 5/8/08. Jurisd. and date addr. of LLC: c/o The Corporation Trust and Companies Registrar, Centre adminis- Location: New York County. LLC formed of org.: DE 3/12/08. County off. loc.: New Co., 1209 Orange St., Wilmington, DE Secy. of State of NY (SSNY) on 8/29/08. tratif Pierre Werner, Batiment F, 13, rue in Nevada on July 16, 2007. SSNY has York County. Princ. bus. loc.: 1350 19801. Arts. of Org. filed with DE Sec. of Office location: NY County. SSNY desig- Erasme, Luxembourg-Kirchberg, been designated as agent of LLC upon Avenue of the Americas, New York, NY State, PO Box 898, Dover, DE 19903. nated as agent of LLC upon whom Luxembourg. Purpose: any lawful activity. process against it may be served. The 10019. Sec. of State designated as agent Purpose: any lawful activity. process against it may be served. SSNY P.O. address to which the SSNY shall mail of foreign LLC upon whom process shall mail process to: c/o Eric H. Seltzer, Notice of Formation of Creative Print a copy of any process against the LLC against it may be served. The Sec. of Notice of Formation of Synergy Dental Gilbride, Tues, Last & Spellane LLC, 708 Technologies, LLC. Certificate of Merger served upon him is C/O the LLC: State shall mail copy of process to: 10 Management, LLC. Arts. of Org. filed with Third Ave., 26th Fl., NY, NY 10017. filed with Secy. of State of NY (SSNY) on Salvatore Favia; 6933 Exeter Street, Forest East 40th Street, 10th Floor, New York, NY Secy. of State of NY (SSNY) on 08/19/08. Purpose: any lawful activity. July 28, 2008. Office location: New York Hills, NY 11375. A copy of the Articles of 10016, Attn: National Corporate Research, Office location: New York County. County. SSNY designated as agent of LLC Organization with all amendments thereto Ltd. Addr. of foreign LLC in DE is: 615 Principal office of LLC: 18 East 50th Advertise on upon whom process against it may be shall be provided upon request. Such South DuPont Hwy., Dover, DE 19901. Street, 8th Floor, New York, NY 10022. served. SSNY shall mail process to request should be sent to Salvatore Favia Auth. officer in DE where Cert. of Form. SSNY designated as agent of LLC upon www.crainsnewyork.com Goldstein Rubinton Goldstein & DiFazio, at the above address. The Principal filed: Harriet Smith Windsor, Sec. of State, whom process against it may be served. PC, 18 West Carver Street, Huntington, Business Address of the LLC is: 1645 Div. of Corporations, John G. Townsend SSNY shall mail process to the LLC at the Call John Gallagher NY, 11743, Attn: Arthur Goldstein, Esq. Village Center Circle, Ste. 170, Las Vegas, Bldg., 401 Federal Street, Suite 4, Dover, address of its principal office. Purpose: @ 212-210-0189 Purpose: any lawful act or activity. NV 89134. Purpose of LLC: Real Estate. DE 19901. Purpose: any lawful activity. Any lawful activity.

September 22, 2008 | Crain’s New York Business | 25 CNYB 09-22-08 A 26 9/18/2008 8:36 PM Page 1

SMALL BUSINESS

AT A GLANCE ON DECK Shunned borrowers find online lender CAPITAL FOUNDED May 2008 “The interesting thing about On On Deck uses the tagline “Wall Center for Commercial Lending On Deck Capital Deck is that they actually looked at Street to Main Street” to reflects and Business Banking, believes that LOCATION Online at makes loans of up to our sales last year and this year and Mr. Jacobs’ big-time funding banks’personal service and counsel- www.ondeckcapital.com $100,000; high rates how we were growing,” Ms. Ekbar sources and small-scale borrowers. ing trump the services of a quickie BUSINESS MODEL Makes small says. “Banks looked at our credit re- Mr. Jacobs and a handful of em- lender like On Deck. “You don’t get loans based on proprietary soft- port, period. Usually when you’re an ployees process loan applications an expert in your business from an BY STEVE WEINSTEIN ware to entrepreneurs shunned entrepreneur, you don’t have great and payments out of a nondescript online lender,” Mr. Seiwart says. by banks credit.” office in Yorkville and two tiny orig- “You can’t talk to software.” ike most clothing ination centers in Kansas and Vir- With rates ranging from 18% to LOAN VOLUME Projected to be designers, Montagerie, A focus on cash flow ginia.They promise an answer with- 36% annually (depending on cash $20 million in 2008

a two-person garment on deck capital doles out loans of in a week for applicants,who usually flow for the six months prior to the istockphoto district firm, needs cash up to $100,000 using proprietary come across On Deck during an on- loan application), On Deck’s inter- to carry it through the software from a team of financial- line search. est rates are higher than banks’ but rising as the economy sours.“Some- Lfallow periods between making services and payment-processing de- Mom-and-pop enterprises have lower than rates for factoring, re- one like On Deck can’t do a lot of due samples and creating finished prod- velopers.Founder Mitch Jacobs’own often had a hard time getting loans, ceivables financing or payday lend- diligence,” says Norman Brodsky, ucts. Having been rebuffed by a background reflects On Deck’s em- but in the wake of the financial cri- ing, which can go as high as 200%. Brooklyn author of The Knack: How commercial bank, co-owner Nancy phasis on cash flow. As a Dartmouth sis, it’s likely to become even harder. Street-Smart Entrepreneurs Learn to Ekbar turned to a new lender with a undergrad in the early ’90s, he devel- The Association for Enterprise Op- Easy payments Handle Whatever Comes. “Software completely different model to eval- oped a system that let students turn portunity, an umbrella group for re- mr. jacobs sees enterprising immi- doesn’t tell the whole story.” uate startup businesses like hers. their college IDs into charge cards at gional microlenders, estimates that grants like Magid Amin as prime Eventually, Mr. Jacobs wants to On Deck Capital, which oper- off-campus businesses. 10 million entrepreneurs nation- customers. Mr. Amin is a former work with banks as a clearinghouse ates completely online, gave Mon- He launched On Deck in May wide don’t qualify for traditional limo driver from Egypt who is now or even to sell them his software.For tagerie a one-year loan based on the with more than $100 million in loan bank loans. trying to establish a Bay Ridge- now, however, he’s content to seek company’s cash flow—in contrast to funds and $10 million in operating “With the housing crisis and based Expedia-type travel site, Fly- out businesses—or whole cate- banks,which require the owners’tax expenses from venture-fund sources credit crunch,”says a spokeswoman, over.com. Every day, On Deck gories—neglected or rejected by returns, credit history and business including former American Express “a lot of business owners are finding deducts $50 from his bank account traditional commercial lenders. plan. The loan, repaid in daily mi- Chief Executive James Robinson that even if they would have been to repay his third loan, for $19,000. “Banks are giving us opportunities,” cro-installments of a few dollars, III, Village Ventures and Sun Mi- accepted for a loan from a bank last “You don’t have to write checks,”Mr. he says,“because these are business- works well for the tiny women’s crosystems founder Vinod Khosia. year, now they’re not.” Amin says. “It’s easy and painless.” es that should be financed.” fashion house, which experiences On track to issue 1,000 loans total- But Bob Seiwart, who heads the But On Deck does face the risk of dry spells in spring and summer. ing more than $20 million this year, American Bankers Association’s borrowers defaulting, a risk that is COMMENTS? [email protected]

THE WEEKS AHEAD

THIS WEEK’S EVENTS 470 Seventh Ave., suite 403. Free. Library, 188 Madison Ave., lower level. compliance symposium. 9 a.m. to 4 p.m., OCTOBER 7 SEPTEMBER 22 Advance registration required. (212) Fee: $45 in advance, $55 at the door. Nasdaq MarketSite, 4 Times Square. Fresh Concentrate holds a panel U.S. General Services Administration 947-4230 or [email protected]. (212) 264-4507 or [email protected]. Fee: Free for member firms, $50 other discussion on marketing your business. and the New York chapter of the U.S. SEPTEMBER 25 members, $100 nonmembers. 6 p.m. to 8:30 p.m., Con Ed Building, Green Building Council, hold lecture on Oriented.com holds networking SEPTEMBER 29-OCTOBER 5 (888) 646-2423 or [email protected]. 4 Irving Place, multipurpose room. Fee: historic preservation and sustainability. reception. 7 p.m. to 9 p.m., Sin Sin OCTOBER 1 $40. Advance registration required. 10 a.m. to 12 p.m., Alexander Hamilton Leopard Lounge, 85 Second Ave. Fee: New York Public Library holds lecture OCTOBER 6-OCTOBER 12 (212) 754-9251 or [email protected]. U.S. Custom House, 1 Bowling Green. $5 in advance, $10 at the door. (917) on achieving returns without a broker. OCTOBER 7 —maia blume Free. Advance registration requested. 531-9342 or [email protected]. 5:30 p.m. to 7 p.m., 188 Madison Ave., Association of Real Estate Women (212) 264-3305 or [email protected]. SEPTEMBER 27 room 018. Free. (212) 592-7000. holds lunch on life after Bear Stearns. More meetings online at SEPTEMBER 24 Score NYC holds seminar on business OCTOBER 2 11:30 a.m. to 2 p.m., Club 101, 101 Park www.crainsnewyork.com Forty Plus of New York holds career plans. 1 p.m. to 4 p.m. New York Public National Association of Independent Ave. Fee: Free for members, $130 Click on “Events” strategy workshop. 2 p.m. to 3:30 p.m., Library Science, Industry and Business Broker Dealers holds technology and nonmembers. (212) 599-6181.

PUBLIC & LEGAL NOTICES

Notice of Formation of NGM NEW YORK Notice of Formation of ZIBBY’S PREP METRO REHABILITATION PARTNERS, Notice of Formation of UPPER 90, LLC. F & F 88 LLC, a domestic Limited Liability LLC. Arts. of Org. filed with Secy. of State LLC. Arts of Org. filed with Secy. of LLC, a domestic Limited Liability Arts. of Org. filed with Secy. of State of Company (LLC) filed with the Sec of State of N.Y. (SSNY) on June 18, 2008. Office State of N.Y. (SSNY) on 8/21/08. Office Company (LLC) filed with the Sec of NY (SSNY) on 09/04/08. Office location: of NY on 3-20-08. NY Office location: New location: New York County. SSNY desig- location: New York County. SSNY des- State of NY on 8-6-08. NY Office location: New York County. Principal office of York County. SSNY is designated as nated as agent of LLC upon whom ignated as agent of LLC upon whom New York County. SSNY is designated as LLC: 310 W. 47, Apt. 6K, NY, NY 10036. agent upon whom process against the process against it may be served. SSNY process against it may be served. SSNY agent upon whom process against the SSNY designated as agent of LLC upon LLC may be served. SSNY shall mail a shall mail process to: c/o Insight NYC shall mail process to principal business LLC may be served. SSNY shall mail a whom process against it may be served. copy of any process against the LLC LLC, 206 Front Street, Ste. 1B, Brooklyn, location: 137 E 36 St., Apt. 23C, NY, NY copy of any process against the LLC SSNY shall mail process to Wilson Egidio served upon him/her to Frederic Kantor & NY 11201, Attn: Hubertus Fiedler. 10016. Purpose: Any lawful activity. served upon him/her to The LLC, 4 E. at the address of the principal office. Co., P.C., 45 W. 36th St., 7th Fl., NY, NY Purpose: any lawful activity. 1078884 w.o 84th St., NY, NY 10028. General purposes. Purpose: Any lawful activity. 10018. General purposes. Notice of Qualification of Paulson Access Notice of Qualification of STRS Ohio NY Notice of Qualification of Central Park Notice of Qualification of ELITE TIME Notice of Qualification of AG Asia Special II LLC. Authority filed with NY Dept. of Real Estate Portfolio, LLC. Authority filed Group Lighthouse Global Long/Short LEASING LLC. Authority filed with Secy. of Situations Employee Investment Program, State on 9/2/08. Office location: NY with Secy. of State of NY (SSNY) on Fund, LLC. Authority filed with Secy. of State of NY (SSNY) on 04/14/08. Office L.P. Authority filed with Secy. of State of County. Principal business addr.: 225 08/11/08. Office location: New York State of N.Y. (SSNY) on 8/6/08. Office location: New York County. LLC formed in NY (SSNY) on 08/22/08. Office location: Liberty St., 7th Fl., NY, NY 10281. LLC County. LLC formed in Delaware (DE) on location: NY County. LLC formed in Delaware (DE) on 03/27/07. Principal office New York County. LP formed in Delaware formed in DE on 11/25/03. NY Sec. of 08/07/08. Principal office of LLC: 275 E. Delaware (DE) on 7/21/08. SSNY desig- of LLC: 801 Second Ave., NY, NY 10017. (DE) on 05/16/08. SSNY designated as State designated as agent of LLC upon Broad Street, Columbus, OH 43215. SSNY nated as agent of LLC upon whom SSNY designated as agent of LLC upon agent of LP upon whom process against it whom process against it may be served designated as agent of LLC upon whom process against it may be served. SSNY whom process against it may be served. may be served. SSNY shall mail process to and shall mail process to: CT Corporation process against it may be served. SSNY shall mail process to: c/o Ruth Goodstein, SSNY shall mail process to: c/o The LLC, c/o Corporation Service Company, 80 State System, 111 8th Ave., NY, NY 10011, shall mail process to c/o Corporation 12 E. 49th St., 14th Fl., NY, NY 10017. DE Attention: David Bernstein, 801 Second Street, Albany, NY 12207, registered agent regd. agt. upon whom process may be Service Company, 80 State Street, Albany, address of LLC: National Corporate Avenue, New York, NY 10017. Cert. Of upon whom and at which process may be served. DE addr. of LLC: c/o The NY 12207. Arts. of Org. filed with Delaware Research, Ltd., 615 South DuPont Hwy., Change filed with SSNY on 5/2/08 chang- served. Arts. of Org. filed with Secretary Corporation Trust Co., 1209 Orange St., Secretary of State, Division of Dover, DE 19901. Cert. of Form. filed with ing name to Horluxe LLC. Arts. of Org. filed of State of Delaware, Department of Wilmington, DE 19801. Arts. of Org. filed Corporations, John G. Townsend Bldg, 401 DE Secy. of State, Loockerman & Federal with Secretary of State of Delaware, 401 State, Division of Corporations, John with DE Sec. of State, PO Box 898, Dover, Federal Street, Dover, DE 19901. Purpose: St., Dover, DE 19901. Purpose: any lawful Federal Street, Suite 4, Dover, DE 19901. Townsend Building, Dover, DE 19901. DE 19903. Purpose: any lawful activity. Any lawful activity. activity. Purpose: Any lawful activity. Purpose: Any lawful activity.

26 | Crain’s New York Business | September 22, 2008 CNYB 09-22-08 A 27 9/18/2008 7:17 PM Page 1

BUSINESS CORPORATE LADDER New publisher at Money magazine rolls up his sleeves PAGE 29 karjean levinekarjean

EMILY RYAN, who GOTHAM GIGS works at New York University’s Langone Medical Center, says Behind the she shops the bulk scenes bins to save money. ANDY HAMINGSON, 45, loves working backstage. A lifelong theater lover, he recalls being in awe of the lobby at the Public Theater as a child. In October, he will take the reins as executive director. PROLOGUE After spending seven years working as an accountant, the Rochester native moved to the city in 1991 to get his master’s in theater at New York University. Though he has always loved show business, “I never had any inclination to be in front of the footlights,” he says. BROADWAY BOUND Since 2004, Mr. Hamingson has been managing director at the Atlantic Theater Co. While there, he has overseen the theater’s $6 million move to a space more than double its former size. He also supervised the transfer of the Tony award- winning Spring Awakening to Broadway. PinchingPinching ENCORE At the Public Theater, Mr. Hamingson hopes to renovate the lobby by adding some modern touches. He pennies firmly believes New York is pennies the world capital of theater. “It all radiates out from here,” he says. —sarah studley toto getget byby EXPERT OPINIONS As economy worsens, TALKING POLITICS IN THE WORKPLACE New Yorkers do without people should feel like they can bring all parts of buck ennis themselves to work and be able to discuss what they feel, so no BY MIRIAM KREININ SOUCCAR subjects should be taboo.The best way to respond hey don’t take cabs anymore, and movie nights are out. They are canceling cable and turning off when there are air conditioners. Even a frozen yogurt topping is deemed a luxury. disagreements is Meet New York’s newest penny-pinchers.These people haven’t lost their jobs, and they don’t even to keep the discussion work on Wall Street. But the implosion of major investment banks, the continuing mortgage crisis and intellectual and not warnings that the economic downturn will worsen have scared working New Yorkers into doing emotional.There everything they can to cut costs. are three issues “Since the economy has gotten really bad, I have stopped shopping completely,” says Emily Ryan, a that are especially hard project associate at New York University’s Langone Medical Center. Ms. Ryan has even started a blog on to discuss while how to get freebies in the Big Apple. “I am looking to save money in every See PINCHING on Page 28 being respectful: a woman’s right to choose, gun SURVEY SAYS control and how America is perceived around the world. T How everyday folks —matt edelman 58% 57% 43% 35%15%14% Chief executive are cutting corners Increasing use Reducing energy Not taking as many Selling something Canceling Not cutting PeopleJam of coupons consumption vacations that’s not needed memberships back at all Source: HSBC Direct National Poll in health clubs istockphoto

September 22, 2008 | Crain’s New York Business | 27 CNYB 09-22-08 A 28 9/18/2008 7:18 PM Page 1

BUSINESS LIVES Pinching pennies to get by SHOESTRING TIPS EMILY RYAN HAS GOTTEN SO GOOD at Continued from Page 27 for her friends. She even considers now it’s a thought-out process. You saving that she decided to share her aspects of my life.” the subway too expensive for her have to consider that with every- secrets through a blog offering daily tips There is, of course, reason to new frugal state of mind and bikes thing going on in the financial on all manner of freebies. She posts worry. Revenue for Wall Street everywhere she goes from her Up- world, it will eventually come several listings each week at firms plummeted 63% in the first per West Side apartment. One un- around to affecting you.” http://notrustfund.blogspot.com. half of this year, and layoffs are ex- expected perk: She has lost 17 Experts say these savers’ reac- Some of Ms. Ryan’s ideas include pected to top 33,000. Gov. David pounds in the process. tions are normal. buying makeup by E.L.F. at Paterson is projecting budget gaps Tiffany Winbush, a public rela- www.eyelipsface.com/shop.asp, Cutting back feels better totaling a shocking $26.2 billion tions specialist at Katz Media where every product is $1. over the next three years, a figure he Group, doesn’t know anyone who “there is some psychological com- She also recommends getting free haircuts at The Bumble & Bumble now says is likely to grow in the works at Lehman Brothers or any fort in taking action, even if you Institute by participating in their styling classes, and buying items like nuts, wake of Lehman Brothers’ bank- other troubled financial firm. Still, can’t see any impact on you person- almond butter and granola in bulk instead of in more costly packages. ruptcy.And the news seems she and her husband,an en- ally,” says Larry Compeau, a mar- Rather than buying clothes, Ms. Ryan suggests that gals host clothing to get worse every day. trepreneur, have stopped keting professor at Clarkson Uni- swaps, aka naked ladies parties, where women put their castoffs in a pile on New Yorkers, who long going to the movies, opting versity and executive officer of the $10 0 the floor and everyone dives in. felt immune to the mort- COST to rent a to rent DVDs instead. Society for Consumer Psychology. gage crises dogging the rest dress for three Rather than going clubbing “People will cut back for no other of the country, and are no- days at the Ilus on the weekends, their reason than it makes them feel they torious for living it up and boutique friends now meet at each are doing something, even if they Metzger says. little more,”Mr.Jason says.“But I’m saving little, say the Wall other’s apartments. And for don’t have to.” In some cases, these attempts at reading about layoffs every day.” Street meltdown and the constant the first time, Ms. Winbush began To remain chic while saving frugality are causing friction among The twosome did agree on the media coverage of the recession are clipping grocery coupons and buy- cash, one New Yorker rents dresses couples. Eric Jason, an events man- biggest sacrifice of all, however. propelling them into action. ing, gasp, nonbranded products. for weddings and charity events in- ager,started watching every penny a They were offered a relative’s apart- The couple is putting bigger- stead of buying them. Cheryl few months ago, when his 401(k) ment in the Riverdale section of the Worrisome numbers ticket items on hold. They were Metzger, marketing manager for started dwindling. Though he and Bronx for $800 a month and are ms. ryan was taking much of the planning to move to a one-bedroom ESI Design,rented her first dress at his girlfriend agreed to move in to- now planning to leave the Upper economic news in stride until a few in their Battery Park neighborhood, Ilus, a new rental boutique on Eliz- gether—in part to save money— East Side. months ago, when it hit home liter- but after adding up the moving costs abeth Street, this summer. Dresses and stop taking cabs to work, they “I never thought I’d live in ally. Her mom, who lives in Texas, and the rent increase, decided to re- at the shop cost around $100 for a fight over just how parsimonious to Riverdale, but it’s becoming a little was forced to move closer to her job new the lease on their studio. three-day loan, versus nearly be. Mr. Jason wants to eat at home more attractive as the days go on,” to save money on gas. Since then, “I cannot recall another time like $1,000 to buy. or grab a burger at the neighbor- Mr. Jason says. Ms. Ryan has canceled cable and this,” says the 26-year-old Ms. “I’m nervous about the econo- hood bar, while his girlfriend still stopped eating out; now she makes Winbush. “In the past, if we want- my and am trying not to spend as wants to go to trendy restaurants. COMMENTS? homemade gifts and greeting cards ed something, it was ‘Go for it,’ and much on frivolous items,” Ms. “She definitely wants to spend a [email protected]

eleventimessquareisviews.com

SJP Properties 212.344.6364 CBRE 212.984.8350

28 | Crain’s New York Business | September 22, 2008 CNYB 09-22-08 A 29 9/18/2008 6:21 PM Page 1

BUSINESS LIVES CORPORATE LADDER John Donnelly Show him the Money Title’s new publisher ident of advertising sales at USA To- day. PERSONNEL FILE looks to shore up ad Mr. Donnelly will need his can- do spirit. He is the Time Inc. COMPANY Money magazine sales in deteriorating monthly’s third publisher in less TITLE Publisher than a year; and he takes over as a financial environment troubled economy is knocking the AGE 47 wind out of advertising sales.A dev- RÉSUMÉ Associate publisher, BY MATTHEW FLAMM astating restructuring on Wall Fortune and Fortune Small Busi- Street compounds the anxiety of ti- ness; national ad director, ne might imagine tles that rely on financial services Fortune that John Donnelly ads. had an easy upbring- MANAGEMENT STYLE ing,having been raised Turning the corner Supportive coach on five acres in bucolic finance magazines have also had HOBBIES Boating, golf OBethany, Conn., by two doctors. to contend with competition from But that wasn’t the case for the the Web, as consumers increasingly new publisher of Money magazine. go online for information and ad- sister titles Fortune and Fortune One of those acres was devoted vertisers follow them. Small Business. In his previous job, to a vegetable garden—and the But Mr. Donnelly says that after Mr. Donnelly created multimedia planting, digging and weeding fell two years of double-digit declines in programs for the Fortune|Money to the only boy in the family of five advertising pages, Money has turned Group’s integrated marketing children. In the summer, the young the corner. He predicts that the team. Mr. Donnelly held two jobs, usually magazine will end the year flat in ad “That really made him stand out the backbreaking kind: working pages and that with circulation of as a candidate,” says Kirk McDon-

construction, dishwashing or pack- 1.9 million copies and an affluent ald, chief advertising officer of the buck ennis ing grocery bags. readership, it can break into new ad group and Mr. Donnelly’s boss. For a publisher in a struggling categories. The new publisher’s background and business development. “He is ing out to the title’s top advertisers category at a troubled media com- “Diversifying the ad base is pri- also includes six years at Young & always results-focused.” to assure them of its health. pany, there might have been no bet- ority No. 1,” Mr. Donnelly says. Rubicam. Media buyers say that his Still, Mr. Donnelly must over- “We’ve added new customers, ter preparation. Consumer electronics, health care, ad agency experience gives him a come the impression that Money’s and we’re going to continue to,” Mr. “It taught me the value of hard pharmaceuticals and luxury goods keen understanding of what they’re executive suite has a revolving door. Donnelly says.“Just when things are work,” Mr. Donnelly says. “And are segments he intends to target. looking for. looking very bleak, there are oppor- that’s pretty much my calling card.” Another focus will be integrat- “John is grounded in analytics Reaching out tunities for growth.” Appointed to his new post in ed ad sales for Money and CNN- and understands how clients think,” the time inc. veteran maintains COMMENTS? August, he replaced5x6pagead_crains.eps Brett Wilson, 9/17/08Money.com, 5:00:27 thePM powerhouse por- says Andrew McLean, Media- that the ad sales staff has plenty of who left to become senior vice pres- tal that also features content from edge:cia’s president, global clients continuity and says that he’s reach- [email protected]

Join Crain’s New York Business and Workforce Management for this critical morning conference in New York City exploring talent management for all seasons, including the art of retaining and finding key people while managing through the layoffs, cutbacks and workplace restructurings that are rippling through the current business environment. KEVIN RYAN Hear keynote speaker Kevin Ryan, founder and former CEO of DoubleClick, Founder and Former CEO and his compelling message about how to manage talent through both good DOUBLECLICK Managing times and bad. He'll also join our panel of experts—moderated by Crain’s editor, Greg David and Workforce Management editor, John Hollon—for a lively panel discussion on this timely topic. Talent DATE JANET HANSON in a Wednesday, October 29, 2008 Founder Turbulent TIME 85 BROADS 7:30 — 8:00am Registration Economy 8:00 — 8:30am Networking Breakfast 8:30 — 9:15am Keynote–Kevin Ryan, founder and former CEO, DoubleClick 9:15 — 9:30am Networking Break 9:30 — 10:15am Panel Discussion RON THOMAS 10:15 — 10:30am Q&A Former VP, Organizational Development VENUE MARTHA STEWART LIVING Roosevelt Hotel, Grand Ballroom, Madison at 45th Street, New York, NY TICKETS $139 for tickets if prepaid by October 8, $149 thereafter $1,250 for tables of 10 if prepaid by October 8, $1,500 thereafter

presented by To purchase tickets, go to crainsnewyork.com/talent. RENEE RUSSELL Executive Director, You must be preregistered to attend this event. All tickets are nonrefundable. For more information, please call the Event Hotline at 212.210.0739. Global Talent Management AVON PRODUCTS

September 22, 2008 | Crain’s New York Business | 29 CNYB 09-22-08 A 30 9/18/2008 7:21 PM Page 1

BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING president. She was formerly vice executive chef at Spiaggia. Deloitte Financial Advisory Services: Mike president, equity sales trading, at Bank HOT JOBS McCabe, 51, joined as a director. He was of America. LAW formerly partner, financial markets, at Butzel Long: Eric B. Fisher, 38, joined as IBM Business Consulting Services. HIGH TECH & NEW MEDIA shareholder. He was formerly partner at WANTED: SUPERIOR OFFICE Vringo: Amir Kirshenboim, 35, was named Morgenstern Fisher & Blue. ADVERTISING & COMMUNICATIONS vice president of product development. Crowell & Moring: Olivier N. Antoine, 33, PRESIDENT AVAILABILITIES Siegel+Gale: Peter S. Cohl, 45, was He was formerly vice president, product joined as counsel. He had been senior promoted to global director, higher and R&D, at MobiMate Ltd. associate at Simpson Thacher & Bartlett. ORGANIZATION Eugenio Maria 212.594.2700 education and nonprofit practice, from Josh Shabtai, 29, was named vice Gibson Dunn & Crutcher: Mark Schonfeld, de Hostos Community College senior strategist. president of marketing. He had been 45, joined as partner. He had been JOB DESCRIPTION Running the senior media specialist and manager, director of the New York office of the FINANCE & INSURANCE interactive strategies group, at Ketchum Securities and Exchange Commission. Bronx school, part of the City Stephens Inc.: John Borucke Jr., 49, was Public Relations. Hiscock & Barclay: Darren Saunders, 48, University of New York SLGREEN.COM named vice president. He was formerly joined as partner. He had been partner at MOST IMPORTANT TASKS vice president and senior position trader HOSPITALITY & TOURISM K&L Gates. Expanding the college’s programs at Jefferies & Co. A Voce: Missy Robbins, 37, was named Samuel Watkins, 49, joined as partner. He Melissa Santoiemma, 32, joined as vice executive chef. She was formerly had been senior associate at Greenberg and reach in the community Traurig. CREDENTIALS NEEDED Doctor- Phillips Nizer: Sheldon Rudoff, 75, joined ate degree, senior-level manage- as partner. He was formerly partner at ment experience at an urban Labaton Sucharow. Wolff & Samson: Marc R. Lepelstat, 48, community or four-year college joined as counsel. He had been partner SALARY About $200,000 at Lambert & Weiss. RECRUITER In-house MEDIA & ENTERTAINMENT UPSIDE Joining Hostos while it’s AdMedia Partners: Michael J. Klingensmith, 55, was appointed on an upswing. In the past managing director. He was formerly an decade, enrollment has risen executive vice president at Time Inc. 22.4%, and full-time faculty has Condé Nast Traveler: Ashley Klopfer, 28, grown 16%. was named senior account manager. She was formerly an account director at More DOWNSIDE It’s a tough time for magazine. fundraising. Food & Wine magazine: Courtney Waddell, Most students at the 38-year-old 30, was promoted to art director from institution are of Hispanic origin, senior designer. Jen Murphy, 28, was promoted to travel from the Dominican Republic, editor from associate editor. Puerto Rico, and Central and Jessica Romm, 31, was promoted to style South America; the school offers editor from assistant home and style programs in English and Spanish. ALL LAWYERS ARE EDUCATED. editor. Its $40 million annual budget Michael Patti, 24, was promoted to comes through city and state senior designer from designer. OUR LAWYERS ARE PREPARED. Media6°: Andrew Pancer, 38, was appropriations, as well as tuition. appointed chief operating officer. He —MIRIAM KREININ SOUCCAR {}was formerly vice president, digital development, at the New York Times Co. MVP/NY: Sarah Bruning, 24, was promoted to senior assistant editor, a Choice Logistics Inc.: Paul Malamet, 53, new position, from assistant editor. was promoted to executive vice president Sinéad O’Carroll, 23, was promoted to of client services from senior vice assistant editor from editor and public president of client services. relations assistant. DiscoverReady: Sean McMechen, 38, was O, The Oprah Magazine: Dana White, 47, named director of client services. He was appointed executive editor. She was had been vice president of operations at formerly executive editor at Golf for SuperiorGlacier. Women magazine. Koren Rogers Executive Search: Valerie Kerry Robertson, 44, was named design Bowser, 42, was named co-director, director. She was formerly design financial services practice. She had been director at Golf for Women magazine. a vice president of recruiting at April VH1 Save the Music Foundation: Jessica International. Ecker, 34, joined as director of Kevin Collins, 55, was named co- development. She had been director of director, financial services practice. He development at Crohn’s & Colitis had been a vice president of recruiting at Foundation of America. April International. Ken April, 58, joined as a financial REAL ESTATE services consultant, a new position. He CPEX: Timothy D. King, 57, was named had been managing partner at April principal of the firm, which he co- International. founded. Metropolitan Jewish Health System James K. Lang, 57, was named principal Foundation: Jennifer Dudley, 39, joined as of the firm, which he co-founded. director of development. She was Brian T. Leary, 39, was named principal formerly associate director of TOURO LAW CENTER graduates are prepared to practice and of the firm, which he co-founded. development at the Cancer Research driven to succeed. Our hands-on curriculum and collaborative Studley: Ian Zilla, 32, was promoted to Institute. relationships with the Federal and State courthouses managing director from assistant Tatum: Steven Greenstein, 48, joined as director. practice leader. He was formerly next door give Touro Law students the edge in developing Zelnik & Co.: Douglas A. Kaminsky, 39, business development director at RSM legal skills necessary to apply theory in the real world. joined as director. He was formerly real McGladrey Inc. Touro Law Center: Where the practice of law begins. estate manager at Chipotle Mexican —sarah studley Grill. SERVICES EXECUTIVE PROMOTIONS Baby Buggy: Katherine Snider, 35, was Crain’s lists the promotion and hiring of New York named deputy director. She was area senior executives on a space-available basis, formerly associate director at the with priority given to positions in New York City. Rockefeller Foundation. The fastest way to get an announcement into Brooklyn Public Library: Judith Nicholas, Crain’s is to submit details online by filling out the Call 631.761.7000 or visit www.tourolaw.edu 61, was appointed deputy director of form at www.crainsnewyork.com/submit. The external affairs. She was formerly chief Executive Moves column is also available online. executive at New Directions in Crain’s cannot confirm receipt of listings or say Philanthropy. when they will appear.

30 | Crain’s New York Business | September 22, 2008 CNYB 09-22-08 A 31 9/18/2008 3:50 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape braised short ribs “stroganoff,” the Calorie counters will find a sea- meat is cut into chunks and tossed sonal greenmarket selection of fresh with nonmushy peas, radish slices, fruit to their liking, but Black Forest mushrooms and noodles. buffs will require the black cherry ice Pork schnitzel needs work. It’s cream to cut the dryness of the cake. not tender enough, and the house- Bodacious markups characterize made huckleberry preserves are too Delicatessen’s 55 wine choices.Most vinegary to bring anything to the bottles are at least 200% over retail palate party. Individual barbecued wine store price tags; some double meat loaf with peas (again) and car- that, and at least one tops 500%. rots has no ’cue. Cantonese-style The restaurant’s waitstaffers are salmon with spring onions, stir- attractive and engaging, though one fried bok choy,and a lime-garlic-soy failed to pour a taste of a $56 wine or- vinaigrette might be tasty if serious dered on a visit soon after it opened. undercooking had not ruined it. On another visit, Mr. Amadei noted At least the Delicatessen desserts guests’displeasure with certain dish- ($8) offer a sweet ending to uneven es.After inquiring,he removed them previous courses.The Ovaltine pud- from the check. When he learned of ding parfait, a milk chocolate and more than two food faux pas, he malt pudding with chocolate pearls, comped the entire meal. induces almost childlike delight at The design shenanigans include buck ennis GARAGE DOOR-OPENER: The bilevel restaurant features wraparound bay windows, al fresco tables and a downstairs lounge. the crunchy textured nibbles layered a mirrored wall in the restrooms. with the smooth, rich pudding. A The effect can startle visitors step- mod take on tres leches cake combines ping inside to discover someone al- coconut sponge, brûléed mango ready there—themselves. They can meringue, pineapple chips and co- get halfway out the door before re- conut sorbet. S’mores are done here alizing the visual joke is on them. with breaded,deep-fried marshmal- International nonevent COMMENTS? lows and chocolate sauce. [email protected] Delicatessen misses and Swiss cheese, served with house-made Thousand Island global comfort food dressing.The halibut tacos,in won- ton wrappers, have only the tiniest mark but hits highs squiggle of guacamole and kim- on wine markups chee-accented sour cream. Sashimi-grade halibut is the focal point of a carpaccio styling with truf- nternational comfort fled lemon soy and a minisalad of food is the name of the game Satur Farms microgreens. Deli- at Delicatessen, a spiffy ar- catessen matzo ball soup does not chitectural concoction at the succeed. Both broth and balls fail the OFFICE point where SoHo and No- flavor test, and the dish is tepid. ILIta meet. It’s from the same folks Fish and chips is a laudable main: CONDOMINIUMS who brought us Cafeteria in a sizable monkfish fillet served with Chelsea. Can Diner be far behind? crunchy fries and mushy peas. In The owners, Mark Thomas Amadei and Andrew Glassberg, might well have named their new venture Garage Doors. Produced in tandem with ANYK Design, the restaurant is a bilevel, wraparound FOR SALE space comprising five bays created by stainless steel and glass garage doors that retract into the ceiling. The arrangement provides superb ventilation in warm weather but causes interior noise to belch onto the DELICATESSEN street and street noise to return the 54 Prince St. favor.In the spot’s early days,passers- (at Lafayette Street) by, sometimes with dogs in tow, (212) 226-0211 stopped to chat with diners. Deli- www.delicatessennyc.com catessen now has staff stationed on # the sidewalk to keep an eye on newly added al fresco tables as well as the CUISINE American eclectic Stop paying rent. pedestrian parade. seasonal On the lower level, reclaimed barnwood planks line the walls, and WINES 55 choices, 15 by the Own your future. the stainless steel bar is covered in glass butcher block. Also downstairs is a DRESS Casual sleek modern bar and lounge where patrons can hang out until tables are NOISE LEVEL Ask the neighbors ready on the ground floor. PRICE RANGE $14-$27 Midtown and Financial District Locations A menu studded with such en- WINE MARKUP 200%-500% tertaining eats as halibut tacos, 131 W. 33rd Street 125 Maiden Lane Reuben fritters and cheeseburger CREDIT CARDS All major 70 W. 36th Street 820 Second Avenue spring rolls—all pretty much what RESERVATIONS they sound like—reflects chef Recommended Doron Wong’s time well spent with Call now another toque who likes to play with HOURS 7 days, 7 a.m.-1 a.m. Michael Rudder at 212.206.6072. [email protected]. www.teofficecondos food: David Burke. ####= Outstanding The complete terms are in Offering Plans available from the Sponsor: File No.CD05-0565; File No.CD07-0638; and File No.CD07-0437, Many of the appetizers ($8 to ###= Excellent respectively. All information supplied is from sources deemed reliable and is furnished subject to errors, omissions, modiﬁ cations, removal of the listing from sale, and to any listing conditions, including the prices. Any square footage dimensions set forth are estimates based on $12) are served in small buckets. ##= Very good approximate rentable measurements. Useable square footage (SF) measurements are set forth in the Offering Plan. Reuben fritters are crisply fried #= Good wraps of corned beef, sauerkraut

010527_Crains Ad_v1.indd 1 September 22, 2008 | Crain’s New9/15/08 York Business 4:38:42 PM | 31 Project9 9/8/08 4:27 PM Page 1

FREE CHECKING1 THAT’S ALL BUSINESS.

GET IT ALL WITH CHASE BUSINESS CHECKING. s &REE/NLINE"ANKINGWITHTHEMOSTPAYMENTOPTIONS s &REE/NLINE"ILL0AYAND!CCOUNT!LERTS s &REE"USINESSDEBITCARDWITHFREEENROLLMENTINTO#HASE6ISA%XTRAS s 3PECIALRATESANDBENElTSWITH#HASE%XCLUSIVESSM s!LLWITHTHESTRENGTHANDSTABILITYYOUDEXPECTFROM#HASE

Visit a branch | 1-800-Chase24 | Go to Chase.com/BusinessChecking GETTING MORE MATTERS.

2 #1 BANK FOR SMALL BUSINESS | #1 CHASE.COM FOR SMALL BUSINESS | #1 SBA LENDER

(1) FREE Chase BusinessClassic Checking requirements: Either (a) Checking account with an average monthly balance of $4,000 to $7,500; depending on region; or (b) a linked Chase business credit card which balance must exceed $0 at least once during the checking account statement cycle and the credit card is not delinquent, closed, charged off, or revoked; or (c) linked to a qualifying Chase personal checking account. Linking for pricing purposes will not affect your statement and does not link accounts for overdraft protection. Overdraft protection must be requested by you. FREE Checking means no monthly maintenance fee if any of the above requirements are met and includes up to 200 transactions per month. Other fees may apply. All accounts are subject to approval. Please see a banker for balance requirements applicable to you. (2) #1 Bank for Small Business based on 2007 market share study conducted by Validata. #1 Chase.com for Small Business based on October 2007 study conducted by Change Sciences Group. #1 SBA Lender based on number of approved SBA loans as reported by the Small Business Administration. ©2008 JPMorgan Chase Bank, N.A. Member FDIC.