20150216-NEWS--0001-NAT-CCI-CN_-- 2/13/2015 7:08 PM Page 1

GOTHAM GIGS DESIGNER GENES 3rd-gen owner Eric Villency CRAIN’S® BUSINESS PAGE 6

VOL. XXXI, NO. 7 WWW.CRAINSNEWYORK.COM FEBRUARY 16-22, 2015 PRICE: $3.00

TWIN INNS? The conjoined 15 and 19 W. 55th St. property generates more complaints of illegal hotel activity than any building in the city. buck ennis THE CITY’S WORST ILLEGAL* HOTEL *According to lawsuits and a review of city complaints. Crain’s checks in to check it out

lobby who hands out apartment which 10 units are occupied by New room on Hotels.com. “Not good.” makeover since he bought it for $60 BY LISA FICKENSCHER keys after confirming visitors’ Yorkers who have called the place The Branson, it turns out, is ac- million in 2013.To tenants and city names on a list. Photo ID or proof home for decades. tually two buildings,at 15 and 19 W. officials, the 65-unit complex has The Branson at Fifth does not offer of reservation is not required. “Nice neighborhood if you don’t 55th St., that are joined by a com- earned a notorious distinction, one your typical hotel experience.There Tourists are sometimes surprised mind the dirty looks from tenants mon basement and a single owner: that has put it in the crosshairs of is no concierge, bellhop or front to find that they have in fact rented who tell you that this is not a hotel,” real estate developer Salim Assa, New York’s beleaguered effort to desk—just a doorman in a narrow a room in an apartment building, in wrote one guest who reserved a who has been giving the property a See HOTEL on Page 19 REPORT How Weight Watchers became HEDGE FUNDS the most heavily shorted Loeb, Icahn and Ackman Time-tested method rific they looked after slimming abandoned the company’s weight- ride cash wave down. Instead, the ad told viewers loss regime in droves.During the past PAGE 11 may be superior, but that overeating is understandable three years, attendance at meetings because food tastes good. has plunged by 35%. That consumers won’t bite “It’s time to take back con- has slimmed revenue at the trol,” the ad said, and 75% -based company BY AARON ELSTEIN DECLINE in the 07 Weight Watchers assured company’s stock by a sixth, and its stock has

5 us it is there to “help with price in the past shed 75% of its value. On Super Bowl Sunday, Weight the hard part.” three years So what happened to Watchers International debuted a Ironically, help is exactly the diet world’s most cred- commercial. Gone were such what Weight Watchers itself needs ible brand? In many ways, Weight celebrities as Jennifer Hudson and right now. Indeed, its kinder, gentler Watchers is reeling from the same Jessica Simpson showing how ter- marketing comes after dieters have See WEIGHT WATCHERS on Page 20 NEWSPAPER 71486 01068 0 20150216-NEWS--0002-NAT-CCI-CN_-- 2/13/2015 7:02 PM Page 1

EDITOR’S NOTE

Bus-capades FYICRAINSNEWYORK.COM

One of my earliest mentors in management was Gloria Scoby, a veteran Crain Communications A tale of two Inc. executive based in Chicago. Longtime readers of Crain’s New indictments York Business might remember police officer’s indictment for Gloria as the publisher of this the shooting death of an Glenn Coleman newspaper in the late 1980s, unarmed man in parachuted in during a rough patch A contrasted sharply with the absence of until she recruited Ed Koch’s one in last year’s case of Eric Garner, deputy mayor for economic development, Alair who died when police in Townsend, to take her place. Gloria hightailed it back put him in a chokehold and pressed to her hometown in the heartland. “Hire people who him face-down against the pavement. ap images are smarter than you,” she would advise when I was a Both victims were black. ¶ Brooklyn young editor at Crain’s Chicago Business in the 1990s. District Attorney Kenneth Thompson expressed satisfaction with the indictment in Akai Gurley’s “There’s never a shortage of them, and their work will death in a darkened public-housing stairwell, noting that although the officer did not intend to kill make you look brilliant.” Gloria’s managers also had anyone, he did fire the fatal shot “when there was no threat.” Doubts have arisen about whether to—had to!—have an excellent No. 2 in place, a Staten Island DA Daniel Donovan pushed as hard for an indictment in the case of Mr. Garner, who second-in-command who could truly take command was also unarmed and appeared not to pose a threat in a cellphone video of the incident. ¶ After the in a second. “God forbid you should be hit by a bus,” Staten Island decision, Mayor Bill de Blasio refrained from criticizing the grand jury or Mr. she would explain. God forbid. I have not been hit by Donovan, but commented about warning his own son about his encounters with cops.The remarks that proverbial bus, but allow me to drive a truck triggered a backlash from police unions.The mayor was even more cautious after the Brooklyn through this metaphor and say I’ve decided to pull the indictment, declining to comment other than to offer his sympathies to Mr. Gurley’s family. vehicle to the side of the road so I can officially hand —andrew j. hawkins over the steering wheel to Jeremy Smerd, my most BIG SPEECH. During her first State of in . It costs $500 a excellent No. 2 these past few years. Jeremy becomes the City address, Council Speaker month, a far cry from the $3,000 HOORAY! No. 1 with our next issue as the newly elevated Melissa Mark-Viverito called for the monthly price tag normally attached ROCKAWAY WILL GET a $480 million creation of a city office to enforce la- to gigabit service. … TAX TRADES. cash infusion from FEMA to repair and executive editor of Crain’s New York Business, while I rebuild three miles of boardwalk bor laws, something currently policed Since at least 2011, Bank of America damaged by Superstorm Sandy. take on a new role as editor at large to help him and by the Department of Consumer Af- Corp. has been using a government- his newsroom in the transition. I think Gloria would fairs and the state Department of La- backed U.S. banking unit to finance approve. Jeremy will lead our editorial team as we bor. She also called for more protec- controversial trades that helped clients expand our online presence and reinvent our print tion of industrial and manufacturing avoid taxes,according to internal doc- zones and vowed to reduce fines on uments. The strategy was used to at- offerings.The changes to come in 2015 and beyond small businesses. … RESTLESS NEST. tract hedge-fund clients to the bank’s

should prove exciting for our audiences. Crain’s New Less than a day after Twitter an- European investment-banking unit. ap images York Business has been around a long time—2015 nounced it had acquired SoHo-based … FUNDS FOR FASHION. The city will marks its 30th year as a weekly newspaper—and I’ve Niche—a startup that helps connect allocate $15 million to fashion compa- OY VEY! video makers with advertisers—for nies—triple the current level—to pay been fortunate to be its editor or managing editor for $30 million, reports surfaced that the for scholarships, internships, grants WET WIPES are increasingly the past six years. What a ride. It’s time to enjoy the social-media giant is looking to ex- and loans.Local retailers can now par- being used view from my new seat on this bus. pand its New York City foothold. It is ticipate in the city’s Made in New York instead of toilet looking for 60,000 square feet here,on program. … $4B DEAL. Blackstone paper and are clogging the city’s top of the 140,000 square feet it leased Group will buy a 50% stake in six sewer system. in last buildings from RXR The City THIS WEEK IN CRAIN’S year.… CHEESESTEAK Realty, including the Council is OVER CHEESECAKE. ‘It’s a grand considering a Starrett-Lehigh crackdown.

New York City lost istockphoto IN THE BOROUGHS------3 caper. You talk Building. RXR, the bid to host the which will continue IN THE MARKETS------4 2016 Democratic Na- to strangers, operating the proper- tional Convention to ty, will use the pro- $600M RIVAL. E-commerce site THE INSIDER ------5 ask them Philadelphia, a blow ceeds to build mixed- Jet.com, which aims to take on Ama- BUSINESS PEOPLE ------6 to Mayor Bill de Bla- anything, type use developments. … zon, raised $140 million in a funding REAL ESTATE BRIBERY OPINION------8 sio. The event is ex- round led by Bain Capital Ventures, pected to generate an it up. … It RING. Fifty people, boosting its valuation to $600 million. GREG DAVID ------9 economic impact of beats working’ including 16 city em- … JOAN RIVERS’ PENTHOUSE. The late REPORT: WALL STREET ------11 $300 million. ... — ployees and 22 prop- comedian’s 5,100-square-foot Upper FINALLY, FASTER New York Times columnist David Carr, erty managers, were triplex was listed for sale at THE LIST ------13 INTERNET. Brooklyn who died Thursday at 58, busted for bribes to- $28 million. … IN MEMORIAM. Long- NEW YORK, NEW YORK REAL ESTATE------15 Fiber rolled out its gi- on journalism taling $450,000 to time 60 Minutes correspondent Bob gabit broadband serv- have permits expedit- Simon was killed in a car David Bennett’s Gotham SMALL BUSINESS------15 ice in Industry City,which is 20 times ed, complaints dismissed and stop- crash. He was 73. Chamber Opera is one of a CLASSIFIEDS ------faster than existing download speeds work orders removed. … AMAZON’S —emily laermer number of small, thriving 16 opera companies in NYC. P. 21 SOURCE COFFEE------22

vol. xxxi, no. 7, february 16, 2015—Crain’s New York Business (issn 8756-789x) is STORIES TO WATCH THIS WEEK published weekly, except for double issues the weeks of June 29, July 13, July 27, Aug. 10, Aug. 24 and Dec. 21, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Post- Feb. 16: New York Feb. 17: Vornado Feb. 20: Nursing- Feb. 22: 87th master: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Restaurant Week Realty Trust reports home ratings under Oscars. Three films Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379.Fax (313) 446-6777.$3.00 a copy,$99.95 one begins. 4Q earnings. new federal made in NYC were year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. guidelines released nominated.

2 | Crain’s New York Business | February 16, 2015 20150216-NEWS--0003-NAT-CCI-CN_-- 2/13/2015 5:45 PM Page 1

IN THE SCOTT STRINGER touts BOROUGHS his “creative tension” with mayor as indicative of his independence. Lost in green space Long-promised park improvements still remain undone

BY CARA S. TRAGER

Running along the north and south flanks of Pelham Parkway in the Bronx, the Pelham Parkway mall is a nearly two-mile urban oasis. Stretching from the Hutchinson BY ANDREW J. HAWKINS River Parkway almost to the Bronx Before he became the guy to scuttle Eliot Zoo,it draws residents to play catch, Stringer walk their dogs or just hang out. Spitzer’s comeback, Scott Stringer vowed to “It’s one of the reasons I moved overhaul the obscure but influential office of to this area,” said Joanne Russo- city comptroller. Rubino, a Parkway-area resident for speaks up. “It is time,” he said at a Crain’s Breakfast more than 40 years and Communi- Forum in April 2013,“that we reimagine that ty Board 11’s chairperson of parks office from top to bottom.” and recreation. Mr. Stringer’s first year in office established Not surprisingly, when the city But can he him as a highly functional but hardly transfor- budgeted $1,357,395 to fix up the Frederick Law Olmsted-designed mational comptroller, appreciated less for who greensward more than a decade ago, he is than who he is not: his nakedly ambi- Ms.Russo-Rubino and many others tious predecessor, John Liu, who delighted in were thrilled. Little did they know, stand out? however, how long they’d have to attacking the pro-business ; or Mr. Spitzer, who briefly gave wait to see the promised enhance- business leaders an aneurysm before losing the ments, ranging from new seating to Biz groups prefer their careful comptroller’s race to Mr. Stringer in 2013. landscaping. Today, that wait drags on, as it comptroller to Liu or Spitzer, “His public statements have been meas- does for about a dozen other park ured,” said Kathryn Wylde, president of the projects that have been languishing but he’s still forming an identity See STRINGER on Page 20 in various stages of capital improve- ments since September 2004.That’s

buck ennis See LOST on Page 10 NY’s $6.4 billion health reform STATS AND THE CITY by Nicholas Wells ANCHORS AWAY: Fake news became real last week when Jon Stewart said hinges on the click of a mouse he would leave The Daily Show this year. Meanwhile, NBC’s Brian Williams was suspended for six months for exaggerating an Iraq War incident. How hard can it be completing a little-publicized $486 of a patient’s team of health care YEARS that Mr. Williams has anchored NBC’s Nightly News. Mr. million project to link medical providers to easily connect to a se- 11 Stewart has hosted The Daily Show for 16 to share patient info? records to hospitals, doctors and cure network and share medical in- clinics statewide, in a system that, if formation. NUMBER of times Mr. Williams $486 million hard successful, could be a model for the The system, known as the State appeared on The Daily Show nation. The network—paid for by Health Information Network of 22between 2003 and 2013 state and federal money—is essen- New York,will give doctors access to +30% BY IRINA IVANOVA INCREASE in The Daily their patients’ entire medical history Show viewership from in one secure online location, mak- the previous night after Several years ago, Cheryl Blum, an Little-known ing medical care better and cheaper. word of Mr. Stewart’s online community manager,tried to But already the limitations of the announcement spread have emergency-room doctors in network could new network—for those who on the Internet New Jersey send a scan of her stom- actually know about it—have ach to her physician in Manhattan. make care caused frustration. Parents, for in- APPROXIMATE market value lost overnight by “I said,‘Can’t I just take a picture stance, won’t be able to view the Comedy Central’s parent company, Viacom, after and send it on my cellphone?’ ” the better, cheaper medical information of their Mr. Stewart-$350M said he would depart northern New Jersey resident said. teenage children because state law “And they just looked at me like, ‘I protects the privacy of teenagers’ NET WORTH of Mr. Williams; Mr. Stewart is worth don’t think so, lady.’ I really could sexual and reproductive health in- $40M$80 million not understand that.” formation, even from parents. Ms. Blum’s experience is all too tial to New York’s $6.4 billion Med- As a result, kids over the age of NUMBER of Twitter followers of @TheDailyShow, compared common in a country that lacks a uni- icaid reform, which begins in April. 12 will have no records in the system 3.2M with 422,000 for @NBCNightlyNews fied system to share health records. If the network falters, as Health- because the network is structured in Sources: NBC, Twitter, Bustle.com, The Hollywood Reporter, Fortune, Celebrity Net Worth But in a few months, New York care.gov did during the rollout of a way that makes it impossible to istockphoto patients, at least, will have it easier. Obamacare, so too could the reform hide part of a medical record. ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY The state is in the last stages of effort, which hinges on the ability See NETWORK on Page 20

February 16, 2015 | Crain’s New York Business | 3 20150216-NEWS--0004-NAT-CCI-CN_-- 2/13/2015 5:45 PM Page 1 IN THE We congratulate our client MARKETS by Aaron Elstein

and its subsidiary

CBL & Associates Limited Partnership

on their follow-on $300 million offering ROBERT GREENHILL’s namesake firm is hoping of investment-grade 4.60% Senior Notes to get back on top of the M&A game after a disappointing year. Merging traffic bypasses Greenhill

Want more info on our donedeals? Scan the QR Code with your smart phone. ig mergers are being struck left and right these days— witness Expedia’s $1.3 billion acquisition of Orbitz last week.That means hefty fees for corporate

’S® ESS CRAINYORK BUSIN N E W SEPTEMBER 30, 2013

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CRAINSNEWYORK.  --  , 0-        6735 ;       <   FEAE;E+E+EE  E E E3T,77 GO3> TO WWW.        0 +          - E-22 CRAIN’S LIS             +               ANY   *        + +    3824   CCOUNTING FIRMS OR       6  * 4 -     4 +; ; --     -   OF TOP 25 A    :7  * 9 6:56 -     E FULL LIST (AV 6IQE 8QA8 +,      673  53 :2 7 -       1     ++ 53 3:2 +- *  + +  FOR TH        +-  .  /       + +   * -     3 53 3?24   ,       ,       658 +  - ?24       53 3529  0    53  A 682   6736 829 3   - 57 3>24   + - * *    +     53 -     ,  -   + *  3624      -  ;0 + 6724        1   +  + *     <  652 * mong the many things hang their coats and use the bathrooms. expansion plan the Frick envisioned all 0 2    57 =24    - 57 >29-    3=    57 0   * -    + ,   -*  24     53 3329 >7      *  +  -   6735 3 2  * 3=24      -    <  without  + - 3724  9@    + ed. Further duplication 2         *    <   that make New York City Modern wheelchairs cannot fit through those years ago. 0- 57  + ,  -   D - +   3 6735 662 +- Inc.    All rights reserv < *  +   +EE. © E; -2013 Crain Communications M/LISTS   B    6735 632;ew C Yo 4 rk Business . #NB13035 .  FECrain'sAE; NE+E LIST, GO TO WWW.CRAINSNEWYORK.CO great are its museums. the doors. The museum’s thoughtfully updated Reprinted E-22 with permission from permission is prohibited. Visit www.crainsnewyork.com OR ANY CRAIN’S P 25 ACCOUNTING FIRMS FOR THE FULL LIST OF TO More than 100 of them, Decades ago, museum officials and designed proposal, which requires each with its own bought and demolished three adjacent both a zoning exception and landmarks character, enhance the quality of life for buildings to expand their commission approval, is to replace the ed. Further duplication without A . © 2013 Crain Communications Inc. All rights reserv Crain's New York Business residents and keep tourism dollars institution and connect it to the Frick private garden with a public one on the Reprinted with permission from permission is prohibited. Visit www.crainsnewyork.com. #NB13035 flowing into locals’ pockets. Art Reference Library. They couldn’t roof of a new addition. The neighbors’ Among the many things that make afford to do the project then, so they kvetching, boiled down, is that they will ll rights reserved. Further duplication without the city infuriating are its kvetchers. created a splendid private garden on the lose their view of a closed garden. We . © 2013 Crain Communications Inc. A Crain's New York Business Launched about 20 years ago by former Morgan Stanley Reprinted with permission from permission is prohibited. Visit www.crainsnewyork.com. #NB13035 These are the folks who react to side with the other 8.3 million New change by asking, “What’s in it for The public Yorkers and 55 million tourists who me?” They bemoan any idea that would get a garden they can visit—and might inconvenience them. benefits offset a vastly superior “house museum” Which brings us to the Frick the lost views of experience, too. Collection, the magnificent little art The Frick could build on its property museum housed in the former a privileged few without a zoning action, but the current Hard Copies residence of Gilded Age industrialist rules demand a tall, thin building that’s Plaques & For more information contact Robert Greenhill Eprints President , this boutique firm was modeled Frames Alicia Samuel, Reprint Account Executive (Digital Reprints) [email protected] • tel 212.210.0750 after the Wall Street partnerships of yore. It employs a few dozen bankers who provide candid, discreet advice to blue-

chip corporations and don’t try to Brennan Hawken wrote a report titled hawk a bunch of other stuff—such “A franchise in decline?” and sug- as underwriting a big debt deal to gested the firm is having trouble help pay for the merger—on the keeping top dealmakers. That side. would make sense, given that The firm went public in 2004, Greenhill pays employees heavily and its bankers had a prime seat at with its own shares,which have lost the table for many of the last 50% of their value since 2009. decade’s biggest mergers,including Greenhill executives contend Royal Bank of Scotland’s $100 billion their firm is sound and that they’re acquisition of ABN Amro in 2007. keeping the folks they want. They Plenty of experienced dealmakers attribute last year’s disappointing from giant banks found refuge at performance to a paucity of merg- Greenhill after the financial crisis, ers in Europe and the fact that some which seemingly positioned the deals simply didn’t get struck before firm well for the next upswing in the clock ran out on 2014. Case in deal activity. But it hasn’t worked point: Earlier this month, the firm out that way, at least so far. advised a telecommunications Last year, Greenhill’s total rev- company that bought some land- enue slipped by 4%, to $275 mil- line assets from Verizon for $10.5 lion. Meanwhile, rivals Lazard and billion.That suggests Greenhill re- Evercore Partners posted increases of mains a player. 15% and 23%, respectively. What’s “Had a few more [deals] gotten more, Greenhill’s revenue has gone across the finish line, the outcome nowhere for four consecutive years, would have been completely con- while its share of global merger vol- sistent with our history,”Chief Ex- ume has halved since 2012, accord- ecutive Scott Bok said at an investor ing to Bloomberg data. conference last week. Competitors sense a wounded Who knows? Maybe a boutique- rival. Last month, UBS analyst size turnaround story is brewing. Ⅲ

PORTION of all American Express 10%cards in use that had been issued to Costco shoppers. AmEx’s stock sank by 6% last week after the company said it would terminate the

istockphoto agreement with the retailer after 16 years. 20150216-NEWS--0005-NAT-CCI-CN_-- 2/13/2015 6:41 PM Page 1

THE MTA’S five-year capital plan is THE barely half funded. Here, a worker at politan region mov- Highbridge Yard in ing.” About $22 bil- INSIDER the Bronx lion of the plan is to by Andrew J. Hawkins maintain a state of good repair,with some expansion projects to trigger economic Council takes hard line on credit bill growth and enhance- ments to meet the ex- he day after Council Speaker Melissa Mark-Viverito pectations of today’s endorsed a ban on employers running credit checks on riders. But Gov. Andrew Tjob applicants, a key business leader protested that bill Cuomo initially de- sponsors were refusing to make amendments that were not scribed the plan as only reasonable, but also necessary to comply with the law. “bloated,”and has sug- Advocates who say credit histories can be used to gested the agency’s capital needs could be discriminate against employees and job applicants rallied at buck ennis met without new rev- City Hall last week for a City Council bill that would ban enue sources. Last their use in most instances. Mayor Bill de Blasio is in favor of of the bill said they met with mem- slower commutes and lost produc- month,he softened his stance,pledg- bers of the administration last week tivity. ing to contribute $750 million from the “concept” of prohibiting credit checks, but has not and are confident a deal is close. “Our findings show what any the state’s budget surplus and com- endorsed the bill or any specific proposal. New Yorker already knows: Under- mitting to a number of projects and investing in transit is bad for busi- equipment purchases in the plan.But Meanwhile, business interests Wylde wrote.“We have urged spon- 15 billion reasons ness, bad for commuters and bad for he did not say how he would pay for are arguing for exemptions for some sors of the legislation to consider a the MTA needs help the future of New York,” said Eric them, leaving that for negotiations financial firms and other companies more balanced approach,to no avail.” Rothman, president of HR&A Advi- with the state legislature. that have employees with access to Supporters, who are intent on Failure to close the $15 billion deficit sors, which was commissioned by That did not inspire transit ad- sensitive information. The carve- making their ban the strongest in in the Metropolitan Transportation the Urban Land Institute and the vocates with confidence. outs are needed because in some the country, say most exemptions Authority’s $32 billion, five-year Permanent Citizens Advisory “We have an Albany problem,” cases state and federal law requires are unjustified and discriminatory. capital plan would have dire conse- Committee to the MTA to produce said the Pratt Center for Commu- credit checks, according to Kathryn “Our coalition is opposed to un- quences for the region’s economy, a the report. nity Development’s Joan Byron,a Wylde, president and CEO of the dermining the strength of the bill,” new study said.It would lead to a “de- Released last September, the panelist at a forum last week to pub- Partnership for New York City. said Armando Chapelliquen, campaign cline in regional image” causing a capital plan was described by MTA licize the new report. “We have a Last week,she sent a letter to Mr. organizer with the New York Public “slowdown in tourism,”one of the re- CEO Thomas Prendergast as “the sin- governor who has demonstrated de Blasio and Ms. Mark-Viverito Interest Research Group. “While gion’s main economic drivers. gle most important effort to ensure that he does not get how important seeking the amendments after being the Partnership has pointed to oth- Tourists spend $18 billion a year in we can keep the New York metro- the MTA is.” Ⅲ stymied by the legislation’s sponsors, er states’ bills as examples, the fact New York, and 65% of them use the notably Brad Lander, D-Brooklyn, a remains that there’s zero evidence or MTA’s 12-county transit system. leader of the council’s Progressive research to support the claim that The capital plan calls for new QUOTE OF THE WEEK: ‘The real solution is Caucus. [people’s] credit correlates to their signals, subway cars and buses, as “Most of our city’s employers do ability to work or their propensity to well as reinforcement of stations and not to spread around the waste, but to not oppose the concept of a legal re- commit fraud.” tunnels against extreme weather. quirement that credit checks are lim- A spokesman for Mr. de Blasio Without those upgrades,the system reduce the waste altogether’ —Councilman Ben Kallos, D-Manhattan, opposing a bill that would ited to applicants for jobs where cred- did not respond to a question about is vulnerable to climate change and limit the use of trash transfer stations in certain neighborhoods it history may be relevant,” Ms. where the mayor stands. Supporters increasing congestion, resulting in

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February 16, 2015 | Crain’s New York Business | 5 20150216-NEWS--0006-NAT-CCI-CN_-- 2/13/2015 4:08 PM Page 1

BUSINESS 12.1K Number of NYers who sat for the GMAT in teaching year 2014, down 27% from 2010 PEOPLE Source: Graduate Management Admission Council

EXECUTIVE MOVES

Emma L. Bowen Foundation: Rahsaan Harris, 41, joined the program, which creates career opportunities in the media industry for people of color, as president and chief executive. He was previously executive director at Emerging Practitioners in Philanthropy. Colliers International: Kimberly Brennan, 46, joined the commercial real estate services firm as chief operating officer of the New York/ tristate region. She was previously market leader for Cushman & Wakefield’s New Jersey region. Boundless: Brody Stout, 36, joined the spatial IT company as chief operating officer, a newly created position. He was previously chief operating officer and chief financial officer at CitizenHawk. AdLarge Media: John M. Zamoiski, 62, joined the audio advertising sales company as chief opportunity officer, a newly created position. He was previ- ously chairman and chief executive at Bottlerocket Marketing Group. Agency Group: Eddie ERIC VILLENCY’S Clemens, 30, was namesake design promoted to senior company created vice president and Peloton’s indoor bike. chief marketing officer, a newly created position, at the live-music booking agency. He was previously director of marketing. WiT Media: Clint White, 43, will now

buck ennis hold the title of co-creative director at the lifestyle marketing firm, which he GOTHAM GIGS founded. He continues as president. Simona Kilgour, 36, was promoted to chief operating officer. She was previously vice president of operations. Kristen Earls, 38, was promoted to vice president of strategy. She was Design for living previously an account director. Vera Institute of Justice: Christopher Weiss, 46, joined the research and policy organization as director of its Eric Villency’s moves at family firm boost bottom line substance-use and mental-health program. He was previously senior Eric Villency grew up in midtown surrounded by led the design team for Citi Field’s Delta 360 research analyst at Langer Research ‘I grew Associates. the worlds of fine art and furniture making. His luxury suites; Bloomingdale’s activewear line, World Animal up with mother and grandmother were painters, while his Feats of Strength; and Peloton’s and SoulCycle’s Protection: Priscilla Ma, 46, joined the father ran a successful bespoke furniture business signature indoor bikes. ¶ “Outdoor bikes are like nonprofit as U.S. a nail started by his grandfather in 1932. “I grew up pieces of art. Indoor equipment tends to be executive director. She was previously gun in with a nail gun in hand,” said Mr. Villency, 39. ¶ functional and utilitarian,” he said of his cycle executive director at In his 20s, he transformed the business into an designs. “We approached this thinking, how do Smile Train. hand’ interior-, fashion- and product-design firm, we make something more appealing and durable, Magnusson Architecture and Planning: Fernando Villency Design Group. Some of his changes and integrate that into the workout?” ¶ Products Villa, 53, was promoted to principal have included manufacturing products in Asia, the firm has designed for its clients range from and director of design. He was previously an associate principal. instead of only in Europe and the U.S., for its low low-cost mobile-phone accessories to art Lebenthal Asset Management: Lee production costs, as well as focusing more on installations costing more than $100,000. ¶ The Pease, 56, joined as managing director. He was previously a partner at hospitality projects in addition to retail. ¶ Now project that had been closest to his heart was Haddonfield Square Partners, which the company has 160 employees and production designing the waiting room at bygone St. he co-founded. offices in Hong Kong and Seoul. It sells directly Vincent Hospital’s Rudolph W. Giuliani Trauma Mark Kennard, 56, joined as managing director. He was previously to businesses—designing, manufacturing and Center because it combined Mr. Villency’s love a partner at Haddonfield Square repairing products. “We’re really turnkey,” he of wellness and style. “We brought in progressive Partners, which he co-founded. MBS Value Partners: Margaret Mager, said, “which is what clients appreciate about us.” design in an urgent care environment,” he said, 52, joined the strategic communica- ¶ Mr. Villency, who lives on Central Park South, “but nothing lasts forever.” —jessica kramer tions firm as managing director. She

6 | Crain’s New York Business | February 16, 2015 20150216-NEWS--0007-NAT-CCI-CN_-- 2/13/2015 4:05 PM Page 1

was previously a managing director and business unit leader in Goldman Sachs’ CORPORATE LADDER equity research department. Dune Real Estate Partners: Eric Calder, 37, was promoted to managing director NEW COO HOPING CANARY IS A GOLD MINE at the real estate investment firm and named to its investment committee. He JULIO PEKAROVIC has worked for a string of tech companies, including and, most recently, Quantcast, where he was previously vice president. was chief financial officer and chief administrative officer. In October, he joined Manhattan-based Canary, creator of an Melrose Ballroom: Barry Rosenthal, 48, all-in-one home-security device, as chief operating officer. joined the event space as managing The $249 device, also called Canary, records video—and a number of built-in sensors monitor motion, temperature director. He was previously director of and more. It sends alerts to a user’s smartphone and is designed to “get smarter” as it learns behavioral patterns catering at Espace. Code and Theory: John over time. “I believe this company is poised to grow rapidly,” said Mr. Pekarovic, 48. Long, 44, joined the Canary’s 2013 Indiegogo campaign remains one of the most successful in the site’s history. Canary creative agency as sold 10,000 devices in 78 countries in one month, raising just under $2 million—far outpacing its goal of $100,000. group creative It also raised $10 million in 2014 in a Series A round led by Khosla Ventures. The firm is now shipping preorders. director. He was In the newly created position, Mr. Pekarovic will oversee human resources, finance and other internal operations.“That previously creative knowledge and experience he brings—of having been with rapidly scaling tech companies—is valuable,” said Adam Sager, director at Huge. Conductor: Sheridan Canary’s co-founder and CEO. —NAZISH DHOLAKIA Orr, 39, joined the Web-presence management company as senior director of product marketing. She was previously head of global product marketing at ChannelAdvisor. Forbes Insights: Ross Gagnon, 33, joined the strategic research and thought leadership practice of Forbes Media as insights director. He was previously senior quantitative analyst at J.D. Power. Halstead Property: Tony Oakley, 52, was Give your employees promoted to executive director of sales, West Side, at the real estate firm. He was previously an agent. Tremendous! Entertainment: Liz Alderman, 40, joined the television the duck. production company as director of development. She was previously casting director at Soshefeigh Media. Brandy Crawford, 33, joined as senior manager of development. She was Anything else is just previously senior manager of development at History Channel. True North Inc.: Rehan Iqbal, 29, was promoted to associate media director at chicken. the digital advertising firm’s New York headquarters. He was previously media supervisor. The Nation: Kai Wright, 41, joined the Almost 60 percent of employees weekly politics and culture magazine as wish their employers offered features editor. He was 1 previously editorial voluntary . director and editor-at- large at Colorlines. STV: Jon Miller,59, The question is, who will you choose? joined the architectural, construction management and environmental services firm as executive vice president. He was You could opt for a voluntary option from your previously senior vice president and medical carrier, or you could offer coverage from regional business line leader for Aecom 2 Technology Corp. the number one voluntary provider : Afl ac. Properties: Anthony McElroy, 53, joined the owner and There’s no direct cost to you for offering it, and operator of commercial assets as a partner. He was previously senior getting started is as simple as adding a payroll managing director at DTZ. deduction. That’s why business owners like you Kaufman Dolowich & Voluck: Patrick have chosen Afl ac for nearly 60 years. It’s also Kennell, 38, joined the law firm as a partner. He was previously a partner at why we’re so confi dent Afl ac is the right partner Nelson Brown & Co. for your business. Jeffrey Matty, 35, joined as a partner. He was previously a partner at Nelson Brown & Co. You can bet the farm on it. Steven Nassi, 36, joined as a partner. He was previously a partner at Nelson Brown & Co. Call your local agent and visit Marc Voses, 42, joined as a partner. He was previously a partner at Nelson afl ac.com/business Brown & Co. Latham & Watkins: Benjamin A. Naftalis, 37, joined the law firm’s New York office as a partner in the litigation department. He was previously an assistant U.S. attorney for the Southern District of New York. —nazish dholakia

EXECUTIVE PROMOTIONS

The fastest way to get an announcement into 12013 Afl ac WorkForces Report, a study conducted by Research Now on behalf of Afl ac, January 7 – 24, 2013. 2Eastbridge Consulting Group. U.S. Worksite/Voluntary Sales Report. Carrier Results Crain’s is to submit online. Fill out the form for 2012. Avon, CT: April 2013. Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance at www.crainsnewyork.com/section/ Company of New York. Worldwide Headquarters | 1932 Wynnton Road | Columbus, GA 31999 executive_moves. The Executive Moves column Z131175 11/13 is also available online.

February 16, 2015 | Crain’s New York Business | 7

AFL3030 B2B ChickenJr ALT.indd 1 1/24/14 12:18 PM 20150216-NEWS--0008-NAT-CCI-CN_-- 2/12/2015 6:23 PM Page 1

OPINION CRAIN’S NEW YORK BUSINESS

Get moving on traffic plan Rance Crain editor in chief publisher, vp Jill R. Kaplan ight years ago, the Bloomberg needlessly into Manhattan congestion—behavior that, on a EDITORIAL mass scale, costs the economy billions of dollars in lost editor Glenn Coleman administration proposed a bold plan to managing editor Jeremy Smerd unsnarl traffic and raise money for the productivity.Tolls would be lowered on outer-borough deputy managing editors Valerie Block, Erik Ipsen city’s transportation infrastructure. bridges where mass-transit options are few.Time-of-day assistant managing editors Barbara Benson, Business interests backed it, but too many pricing could be used to smooth out rush-hour traffic. Erik Engquist senior news producer Amanda Fung motorists and elected officials weren’t The plan’s bottom line is amazing: 100,000 fewer vehicles contributing editor Elaine Pofeldt ready for the idea of a fee to drive into the entering Manhattan each day, but 110,000 more visits columnists Greg David, Steve Hindy, Alair Townsend senior reporters Theresa Agovino, central business district—though it had worked in London overall as people switch to mass transit. And now, the Aaron Elstein, Lisa Fickenscher, Matthew Flamm, and other cities.The Bloomberg plan was ahead of its time. clincher: It closes the $15 billion deficit in the Metropolitan Daniel Geiger, Adrianne Pasquarelli E reporters Joe Anuta, Chris Bragg, Its successor, however, is just in time. Move NY, Transportation Authority’s five-year, $32 billion capital plan, Andrew J. Hawkins, Irina Ivanova, Jonathan LaMantia, Thornton McEnery developed by traffic engineer Sam Schwartz and honed over which is essential to the regional economy.The other ways to news producer Emily Laermer the years into a most elegant plan, would alleviate a mass- close the gap—raising web reporter/producer Nazish Dholakia transit cash crunch, unclog streets and fund repairs of taxes or transit fares— art director Steven Krupinski Rationalize tolls deputy art director Carolyn McClain deteriorating roads and bridges. lack political support staff photographer Buck Ennis copy desk chief Steve Noveck Although some regard traffic congestion as inevitable in to reduce delays, and have economic and copy editor Thaddeus Rutkowski our dense city, much of it stems from bad policy and social costs. Move NY data editor Suzanne Panara fund transit and researchers Jessica Kramer, Nicholas Wells irrational thinking. Free passage for vehicles over four East provides benefits on editorial intern Yoona Ha River bridges induces drivers to exit roads designed for high lift the economy both of those fronts by ADVERTISING eliminating wasted advertising director Joanna Harp volumes and to plow through city streets and into sales manager Irene Bar-Am Manhattan, one of the world’s busiest commercial centers. time behind the wheel senior account managers Jill Bottomley Kunkes, Courtney McCombs, Many have no business there, literally: They are just passing and funding road and Rob Pierce through. Others would have come by mass transit if it were transit improvements. account managers Zita Doktor, Stuart Smilowitz sales coordinator LeAnn Richardson more convenient or accessible. Still more would have driven The plan—whose rosy projections have been validated by credit manager Jason Hogan (313-446-0353) a more direct route through the East River tunnels if there numerous agencies and experts—is in no way radical. We’ve CUSTOM CONTENT, EVENTS AND PRODUCTION weren’t free alternatives. had tolling for decades, but its haphazard application has director of custom content Trish Henry director of audience & content The Move NY plan’s electronic, at-speed tolling would hurt the city. Move NY will rationalize tolls and traffic flow, partnership development Michael O’Connor director of conferences & events fix all that, and brilliantly. It would lead motorists to take avert tax hikes, foster commerce and improve quality of life. Courtney Williams rational routes rather than go “bridge shopping” and drive It’s an idea whose time has finally come. events coordinator Adrienne Yee events coordinator & scheduler Alexis Sinclair reprint account executive Alicia Samuel CRAIN’S ONLINE POLL COMMENTS media services manager Nicole Spell ONLINE AND INTERACTIVE SERVICES general manager Rosemary Maggiore SHOULD TO SUBSCRIBE: BRIAN For print and digital subscriptions or customer Mayor misses the boat service, e-mail [email protected] WILLIAMS or call 877-824-9379 (in the U.S. and Canada) or 313-446-0450 (all other locations). $3.00 a copy for REPLACE JON FERRY UNFAIR FACTS, NOT FINES CUOMO’S DREAM TRAIN the print edition; or $99.95 one year, $179.95 two years, for print subscriptions with digital access. STEWART AS The mayor’s announcement Re “New health rules rankle Gov. Andrew Cuomo is overly www.crainsnewyork.com/subscribe THE DAILY regarding citywide ferry service restaurant owners” (Crains optimistic about building a train TO ADVERTISE: (CrainsNewYork.com) is not NewYork.com):The city should to LaGuardia Airport. Success Contact Joanna Harp at [email protected] SHOW ’S fair or good news for Rockaway eliminate fines. If the real goal is depends on the Port Authority or call 212-210-0278. FAKE NEWS residents. We want ferry service to get restaurants to address ci- of New York and New Jersey www.crainsnewyork.com/advertise running by this spring, not tations, put a list of all the defi- and Metropolitan Transporta- FOR INFORMATION ON OUR EVENTS:

ANCHOR? bloomberg news 2017 (a mayoral election year). ciencies on a sign in the win- tion Authority working well to- Contact Courtney Williams at The mayor is telling a tale dow, in addition to the letter gether. Fourteen years after [email protected] or 212-210-0257. Yes. His credibility as a newscaster has been of two boroughs: Staten grade.The public will either vis- 9/11, the Cortlandt Street www.crainsnewyork.com/events irreparably harmed, but he’s famous and Island gets to commute for it the restaurant or walk. I would World Trade Center No. 1 sub- TO CONTACT THE NEWSROOM: funny. It’s the perfect match. free, and gets nothing. expect restaurants would want way station is still years away 685 Third Ave., New York, NY 10017-4024 No. Oh, come on. Is this a joke? Just because Even foreign visitors get to to clean up their act real fast. from being back in service.The editorial phone: 212-210-0277 ride the Staten Island Ferry —robert hettenbach two agencies fought for years fax 212-210-0799 the man told a few fibs, you don’t have to Entire contents ©copyright 2015 Crain Communications Inc. pile on. for free. Let’s have a “thanks Manhattan over budget, funding sources, All rights reserved. ®CityBusiness is a registered trademark for nothing” rally! scope and schedule.The MTA of MCP Inc., used under license agreement. Date of poll: Feb. 11 I don’t understand why RESTAURANTS’ VIOLATIONS should has yet to award a contract for 105 votes CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS Rockaway residents are going be posted in 120-point type. construction to proceed. chairman Keith E. Crain to wait almost three years to get The poster should be lit 24 To build a train to the plane president Rance Crain 38% back the same ferry service that hours a day with a spotlight and from the Willets Point No. 7 treasurer Mary Kay Crain Yes was discontinued. Why is every list not only the corporate entity subway and LIRR station to Cindi Crain day in Rockaway Groundhog owning the restaurant but the LaGuardia in five years for executive vp, operations William Morrow Day with this mayor? The full names and home addresses $450 million is a planner’s executive vp, director of strategic money for the Rockaway ferry of the top 10 shareholders, also dream. In reality, it will be a operations Chris Crain executive vp, director of corporate is already in place.The service in 120-point type. nightmare for taxpayers and operations K.C. Crain 62% should be restarted Deficiencies will quickly riders. Count on cost overruns senior vp, group publisher David Klein No immediately. We’ve waited disappear. Restaurant patrons in the hundreds of millions and vp/production, manufacturing David Kamis long enough! will be far more secure. multiyear construction delays. chief financial officer Thomas Stevens chief information officer Anthony DiPonio —joe hartigan —daniel p. doyle —larry penner Rockaway, Queens Bayside, Queens Great Neck, N.Y. founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) secretary Merrilee Crain (1942-2012) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

8 | Crain’s New York Business | February 16, 2015 20150216-NEWS--0009-NAT-CCI-CN_-- 2/12/2015 6:25 PM Page 1

ROBERT K. STEEL the number of applied-sciences fac- ulty and graduate students in the city. Conservative estimates project A public-private tens of billions of dollars in econom- ic impact and hundreds of thou- sands of new jobs at companies that emerge from the research of these model for job growth professors and students. That is an extraordinary return on a public investment of less than $150 n 1790, just 5% of Americans lived in urban settlements. million—less than it costs to run the Our cities were coastal seaports, anchored in trade and Staten Island Ferry for two years— and an ideal model for public-private commerce. Seeing the potential of New York’s harbor, cooperation. The vision was scoped leaders invested millions of public dollars to create the by government, the idea confirmed Erie Canal, casting the die for New York to become one by independent experts, the projects of the world’s top commercial centers. chosen through competition and the I investment financed with public and As the economy transitioned from agrarian to industrial, private resources. The campuses will cities near natural resources prospered. Steel made Pittsburgh. be maintained and managed by non- 5boros is a lifestyle government entities. Oil made Houston. Precious metals initiatives in history, offering land, As with many of the seeds Mr. and entertainment lured prospectors to San Francisco. capital and support for a new ap- Bloomberg planted after the 2008 Today, we’re transitioning to an plied-science campus. financial crisis—the Kingsbridge print, digital and event information and services economy. Institutions from the U.S., Armory redevelopment, the New Growth is driven by talent, particu- Canada, Finland, India, South Ko- York Wheel on Staten Island, the larly in applied sciences. Val- rea, Switzerland and the U.K. ex- Willets Point transformation—we brand that taps into the ley sprang from skills and ideas cul- pressed interest.In December 2011, are just beginning to see the impact tivated at Stanford, Caltech and Mr. Bloomberg tapped Cornell from the applied-sciences initiative. excitement and vibrancy Xerox PARC. Boston has thrived University and the Technion-Israel Now it is up to academic and pri- thanks largely to MIT and other in- Institute (“Israel’s MIT”) to build a vate-sector leaders, with support of ALL of New York City’s stitutions. The combined sales of 2 million-square-foot campus on from a new administration, to en- companies founded by MIT gradu- . It broke ground sure that New York takes full advan- five boroughs with a laser ates and professors equal the GDP Jan. 28 and will open in 2017. NYU tage of the extraordinary economic- of Brazil, a recent study estimated. also is leading a consortium of glob- development opportunities this focus on lifestyle. Seeing this, former Mayor al universities to build a Center for investment will provide for decades Michael Bloomberg recognized Urban Science and Progress in to come. that New York City needed to trans- Brooklyn. Carnegie Mellon is es- form its economy—to get compa- tablishing a presence in the Brook- Robert K. Steel is CEO of Perella Weinberg Coverage includes: nies starting, growing and moving lyn Navy Yard.And Columbia is ex- Partners, and a former deputy mayor for here.So he launched one of the most panding its engineering school. economic development and undersecretary of 5{¯¼¯ĺ¯¯€ĺƯʼÀĺ“ªĺ¹p¼Æª„¼À‘“¹ĺԓƑ ambitious economic-development The four initiatives will double the Treasury. Thrillist Hot residential real estate trends Personality Profiles Budget Office’s work on the issue is exemplary. Foodie and Cultural experiences IsTimes exposé The bad guys in the Times series pay no income tax because they Innovative retailers and shopping don’t spend half the year in New destinations a NYC story? York City or New York state. They probably escape federal income tax, Lists and calendar of not to be too, because they don’t spend half missed events ad guys from around the world are buying up the the year in the country. The Times’ most expensive apartments in New York to launder own James Stewart has written a se- ries of insightful stories on this and or protect their ill-gotten fortunes and hiding that explained how other global cities are Showcase your message fact through mysterious shell companies.They can moving to impose taxes on the glob- in front of New York’s do this because real estate interests blocked efforts al, mobile rich by broadening their to require property transactions to have the same strict scrutiny definition of residency. urban explorers. B Of course, Americans who buy that comes with bank accounts and other financial dealings. luxury condos at places like the Time This is hypocritical because the U.S.is insisting that other coun- Warner Center, the focus of the se- ries, usually benefit from both tax ¯¼ĺp€Ó„¼Æ“À“ªŽĺ¯¹¹¯¼Æʪ“Æ“„ÀĘĺ|¯ªÆp|Æĺ tries change their laws so the feds breaks. Ownership through a shell „ª„¼p£ĺ7pªpŽ„¼Ęĺ#¼„ª„ĺ p¼Į©ĺpÆĺ can pursue people who have hidden corporation makes no difference, ei- “{p¼p©Ş|¼p“ªÀª„ÔÚ¯¼ ĝ|¯©ĺ¯¼ĺ money and avoided taxes in places ther. Whatever the real estate taxes like Switzerland. are, they have to be paid by someone. íìíĮíìëĮëìîîĝ That summary seems to be the The bad guys would have to pay in- bottom line of the five-part New come tax if they lived in the city long York Times series that anyone inter- enough and generated income here. ested in New York real estate has Except perhaps for the develop- been dutifully devouring in the past ers building the super-luxury tow- week.Yet the implications of all this ers, virtually no one believes condos NGJ#8 ĺíëìðĺ#NNW remain somewhat mysterious— like this should get 421a abatements especially for New York. that phase in real estate taxes over as The series points out that the long as 25 years. Many people sup- luxury apartments these bad guys GREG DAVID port an overhaul of the property-tax ¯©“ªŽĺMarch 30, 2015 own pay very little in property taxes system, though it appears to be an and that the individuals probably es- impossible task politically. Broad- March 2, 2015 cape the income tax, too. That’s not expensive luxury condos to absurd ening residency rules makes sense. £¯À“ªŽĺ exactly news. levels. So has Crain’s. I’ve written a But none of this has anything to do The Times itself has published lot about it, too, and about how the with bad guys and shell companies. many stories about how the city’s entire system for levying property In the end, the Times series may controversial 421a tax-abatement taxes is unfair and benefits owners of be set in New York, but tells us little ĺĺð{¯¼¯Àĝ|¯©ĺĺĺĺĺĺŞ|¼p“ªÀð{¯¼¯À program reduces taxes on the most pricey condos. The Independent about the city.

February 16, 2015 | Crain’s New York Business | 9 20150216-NEWS--0010-NAT-CCI-CN_-- 2/12/2015 6:25 PM Page 1

IN THE BOROUGHS BRONX

where. In that case, the de- Lost in green space sign process dragged on for eight years—from Novem- Continued from Page 3 the 62 projects on the Department ber 2006 to May 2014.Even when the city promised Bronxites it of Parks and Recreation’s Bronx today,only 60% of the mate- would spend a whopping $200 mil- to-do list remain undone. Of those, rials for the project have lion to spiff up the borough’s parks. five (including Pelham Parkway) been procured. According The commitment came as the city have yet to advance beyond the de- to Capital Tracker, once sought to compensate residents for sign process. procurement is completed, the temporary Meanwhile,four others are in the the construction should take loss of 28 acres labor-and-procurement stage, and 12 to 18 months. In the 49 in Van Cort- three are finally in construction meantime, the wait has al- COMPLETED park landt Park, the mode.Those delays are now reflect- ready taken a toll. projects borough’s ed in the total cost of the borough- “They eliminated the equivalent of wide effort.It will swell to a project- one comfort station in Ferry 13 Central Park. ed $264.5 million by 2020, Point three decades ago,and NUMBER of That swath according to the city’s Independent the park is referred to as an projects still not was about to Budget Office, but in real terms will UPHILL STRUGGLE: The outdoor toilet,” said Mr. finished Pelham Parkway mall become a con- likely be less than what was original- improvement project has Croft. struction site ly pledged. Still, many park advo- yet to advance beyond $265M for the $2 bil- cates worry that the projects won’t the design stage. Washed out PROJECTED total lion (now $3.5 be completed for years. The Parks Department

cost billion) Croton erik ipsen noted that it does provide Water Filtra- Speedier process portable toilets at Ferry tion Plant, where work is still ongo- “The capital division [of the in 2003. and more transparent. Those steps Point, and it blamed one of the de- ing.Among other things,the mitiga- Parks Department] is a mess, and A Parks Department spokesman include simplifying bidding as well lays on the need to reassess the de- tion plans included renovating unless changes are made, we’re said that changes have already been as launching the online Capital sign’s resiliency in the wake of Su- playgrounds, expanding waterfront going to continue to have these made. Indeed, he noted that since Tracker, which shows the progress perstorm Sandy in 2012. Some access and adding recreational facili- problems,” said Geoffrey Croft, coming on board in May, Commis- of planned park improvements residents said that even when a park ties and new green spaces. president of NYC Park Advocates sioner Mitchell Silver has made the throughout the city. is done—or nearly so—the memory More than a decade later, 13 of Inc., a watchdog group he founded capital-spending process speedier In some cases in the Bronx, what of the long wait still stings. that new online program shows is “We would see no work being discouraging, with delays now feed- done for years, and it was behind ing on each other.After nearly eight schedule, just sitting there aban- th and a half years,for example,the de- doned,” said Elisabeth von Uhl, a 4 Annual Join Crain’s and New York sign phase of the bathroom on the member of Friends of Williams- Aqueduct Walk on Aqueduct Av- bridge Oval Park, an advocacy enue East at 182nd Street was final- group for the 19.7-acre public space. real estate’s most impressive ly completed in January. But, after Its various facilities—including a REAL ESTATE all that time, the work has to be re- recreation center, basketball and players to explore the next bid,a step that has once again stalled tennis courts, and a soccer field— all progress. were completed over a five-year pe- stage in the city’s development. “Aqueduct has been rebid out riod at a cost of $14.3 million. multiple times, and the fundamen- But, she added, “we’re still wait- CONFERENCE tal problem is that because of the ex- ing for the correct [recreation cen- cessive design time, funds lose value ter] doors.” as labor and material prices go up,” Still, all’s well that ends well for said a parks employee who has Ms. von Uhl, who nowadays runs PLANNING THE NEW NEW YORK worked on many renovation proj- the park’s track, uses its gym and ects and asked not to be identified. takes her 3-year-old son to a toddler At Ferry Point Park on the Bronx program there. OPENING DISCUSSION end of the Whitestone Bridge, an- “It’s a beautiful park,” she said, TUESDAY, MARCH 17, 2015 other bathroom is still going no- “and it’s well used and well loved.” Ⅲ Chairman of the NYC Planning New York Athletic Club Commission Carl Weisbrod 180 Central Park South site’s history. The land, however, is will unveil the de Blasio FROM private, having been purchased by Networking Breakfast: 8:00a.m.-8:30a.m. AROUND Ledan Cai in 2010,two years before administration’s latest zoning Program: 8:30a.m.-12:00p.m. it was landmarked. policies and urban-planning THE CITY Local City Councilman Rory Cost to Attend: Lancman said he has the discre- initiatives. $300 for individual ticket(s) QUEENS tionary funds to buy the property, Carl Weisbrod provided the owner sets a “reason- $3,000 for table(s) of ten Grave concern for able” price. He insisted that it PANEL DISCUSSIONS $4,000 for a table of ten and a full page landmarked plot makes no sense to do so until some- > journal ad in the event program. one commits to the cemetery’s up- Restaurant Tenants Tell All: Overgrown with weeds and littered keep. Rohini Dey, Ph.D., Owner, Vermilion Restaurants (NYC & Chicago) You must be pre-registered to attend this event. with plastic bags,a small lot in Fresh “Unlike most political conversa- No refunds permitted. Wylie Dufresne, Chef and Owner, Alder restaurant Meadows shows no sign of its status tions, it’s not about the money,” he Georgette Farkas, Founder & CEO, Rotisserie Georgette as a colonial-era landmark. But said. “It’s about finding an owner For more information: working under the banner of the who can responsibly maintain it Jimmy Haber, Managing Partner, ESquared Hospitality Adrienne Yee Friends of the Brinckerhoff Colo- year in and year out.” > Affordable Housing: Phone: 212-210-0739 nial Cemetery, some neighbors He noted that several groups Joshua Barro, Domestic Correspondent, New York Times, The Upshot Email: [email protected] hope to change that. For openers, have been approached about possi- they want the city to buy the burial bly buying and maintaining the plot + Lisa Gomez, Partner and COO, L M Development Partners ground on 182nd Street, near 73rd and expressed hope that “in the next Seth Pinsky, Executive Vice President, Fund Manager, Avenue, from its current owner. couple of months, we will have de- Metro Emerging Markets & Public Affairs Director, RXR Realty << REGISTER TODAY >> “It’s really an eyesore,” said finitive answers from them.” Steven Spinola, President, Real Estate Board of New York crainsnewyork.com/events-realestate2015 Yolanda Dela Cruz Gallagher, The owner’s attorney, William president of the organization, of Zou of Flushing, said Ms. Cai is the sole vacant property on an oth- “amenable to any proposals” for the erwise prosperous block full of property. She plans to develop it Platinum Sponsor: houses. into a two- or three-family home, She and others want to clear the where she would live.Because of the brush, restore the badly deteriorat- restrictions on its use,the land is val- For sponsorship opportunities, contact Joanna Harp at 212-210-0278 or [email protected] ed picket fence and install a memo- ued at only about $150,000. rial plaque to commemorate the —wendy davis

10 | Crain’s New York Business | February 16, 2015 20150216-NEWS--0011-NAT-CCI-CN_-- 2/12/2015 6:25 PM Page 1

WALL STREET INSIDE The List New York area’s largest mergers and acquisitions PAGE 13 Largest Tech Exits Ranking the top 10 buyouts of NYC-based tech companies REPORT during the past two years PAGE 14 darren thompson darren Big hedgies defy industry woes

times, justifying their fat fees for investing in HEDGE FUNDS VS. THE MARKET Money keeps flowing BY ANDREW OSTERLAND alternatives to and bonds. How total returns compared in 2014 Since the financial crisis,hedge funds as an Hedge funds +3.3% to Loeb, Icahn and Hard-pressed hedge-fund managers could asset class have massively underperformed +6.3% really use another financial crisis—not one both stocks and bonds.That hasn’t hurt some Government bonds Ackman despite their that sends investors racing for the exits as they of the biggest, including those run by well- S&P 500 +13.7% did in 2008, but a scare big enough to remind known city-based managers like Bill Ackman Sources: Research composite index, Barclays Capital mixed performance clients how the funds can outperform in bad See HEDGE FUNDS on Page 14 Government Bond Index, Standard & Poor’s 500 stock index Bankers, lawyers ready for the return of the dealmakers

27,590, but it rose 47% by deal an analyst with Thomson Reuters’ Thomson Reuters and Freeman Mergers-and-acquisitions activity is up; value, to $3.49 trillion, according to Deal Intelligence division. “It really Consulting. Fee revenue in the nearly 100 deals over $5 billion last year data from Thomson Reuters. Big helped push up fees.” Americas—with the U.S. being the strategic buyers who had been lying The pickup in M&A activity will hottest market—was up 21%, to the comeback of mergers and acqui- relatively low since the financial cri- translate into healthy bonuses for $15.7 billion. BY ANDREW OSTERLAND sitions isn’t enough to return Wall sis came out in force last year, strik- bankers and lawyers as New York- Goldman Sachs led the pack,ad- Street to the engine of city wealth it ing 95 deals worth over $5 billion— based banks continue to lead the vising on 446 deals worth more than The dealmaking confidence is back was before the financial crisis. more than twice the number in 2013. lists of top deal advisers. Global $1 trillion.It earned just over $2 bil- in corporate boardrooms, and city The number of mergers an- “Last year was about the return of M&A fees—booked when deals are lion on 362 completed deals. Mor- investment bankers and lawyers are nounced between corporations last the megadeal, with nearly 100 deals completed—were up 12%, to $27.6 gan Stanley, JPMorgan and Citi- reaping the benefits. But experts say year was up a modest 5.5%, to over $5 billion,”said Lucille Quilter, billion, according to estimates by See RETURN on Page 14

February 16, 2015 | Crain’s New York Business | 11 Balancing the weight of big decisions? Should you acquire a competitor? Enter a foreign market? Put sensitive data into the cloud? Pursue private equity funding? When weighing big decisions, it’s critical that analyses are reliable, specialized services are readily accessible, and insight is drawn from experience. Call on Deloitte Growth Enterprise Services, and get professionals who not only help you balance the weight, but also carry it.

For more on audit and advisory services tailored to the middle market, visit deloitte.com/us/dges. In New York contact Robin Matza, Greg Koslow, Joe Fisher, or Tom Ford at +1 212 492 4000 or email us at [email protected].

As used in this document, “Deloitte” means Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, and Deloitte Tax LLP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2015 Deloitte Development LLC. All rights reserved. 36 USC 220506 Member of Deloitte Touche Tohmatsu Limited 20150216-NEWS--0013-NAT-CCI-CN_-- 2/12/2015 6:26 PM Page 1

THE NY Area’s Largest Mergers and Acquisitions LIST Deals announced in 2014, ranked by deal value

Deal value, Primary industry Rank Target Buyers/investors in millions of target business Date announced Date closed TRENDS

Time Warner Cable Inc. $69,240.7 Comcast Corp. Cable and satellite 2/12 Pending VALUE OF M&A DEALS DROPS ... Manhattan Philadelphia 1 The total value of announced deals Forest Laboratories Inc. Actavis plc $25,449.5 Pharmaceuticals 2/17 7/1 with the buyer or seller in NYC fell 5% 2 Manhattan Parsippany, N.J. in 2014 after nearly doubling in 2013. Figures in billions. CareFusion Corp. Becton Dickinson and Co. $13,793.7 Health care equipment 10/5 Pending 3 San Diego Franklin Lakes, N.J. $395.9 1 $375.0 PetSmart Inc. StepStone Group $8,936.0 Specialty stores 12/14 Pending 4 Phoenix Manhattan Pinafore Holdings B.V. Blackstone Group, private-equity group $7,340.4 Auto parts and equipment 4/4 7/3 5 Amsterdam Manhattan Nuveen Investments Inc. TIAA-CREF Asset Management Inc. $6,250.0 Asset management and custody 4/13 10/1 $215.1 $211.4 6 Chicago Manhattan banks $200.3 Nevada Property 1 Blackstone Real Estate Advisors $5,225.3 Hotels, resorts and cruise lines 5/15 12/19 7 Las Vegas Manhattan Bally Technologies Inc. Scientific Games Corp. $5,148.9 Casinos and gaming 8/1 11/21 8 Las Vegas Manhattan Catalunya Banc S.A., Blackstone Group $4,898.8 Thrifts and mortgage finance 7/16 7/16 9 mortgage loan portfolio Manhattan Barcelona 2010 2011 2012 2013 2014 Spanish and Portugal commercial Lone Star Funds; JPMorgan Chase & Co. $4,793.5 Thrifts and mortgage finance 5/20 6/30 10 property loan portfolio private banking and Manhattan investments ... BUT TOTAL NUMBER IS UP Cleco Corp. Macquarie Infrastructure Partners Inc.2 $4,703.5 Electric utilities 10/17 Pending Total announced transactions in which 11 Pineville, La. Manhattan an NYC company was a buyer or target. MultiPlan Inc. Starr Investment Holdings, investment arm3 $4,400.0 Managed health care 2/17 2/17 12 Manhattan Manhattan 2,768 UK Asset Resolution Ltd., JPMorgan Chase & Co.; $4,378.5 Thrifts and mortgage finance 9/12 10/14 2,478 portfolio of state-owned mortgages Commercial First Mortgages Ltd. 13 2,282 2,306 West Yorkshire, England Manhattan Griffin-American Healthcare NorthStar Realty Finance Corp. $3,914.6 Health care REITs 8/5 12/3 1,899 14 REIT II Inc. Manhattan Santa Ana, Calif. First Data Holdings Inc. KKR & Co.4 $3,500.0 Data processing and outsourced 6/19 7/13 15 Atlanta Manhattan services IMB HoldCo CIT Group Inc. $3,375.6 Regional banks 7/21 Pending 16 Pasadena, Calif. Livingston, N.J. Aptalis Holdings Inc. Forest Laboratories Inc. $2,900.0 Pharmaceuticals 1/7 1/31 17 Bridgewater, N.J. Manhattan TriZetto Corp. Cognizant Technology Solutions Corp. $2,700.0 Health care technology 9/14 11/20 2010 2011 2012 2013 2014 18 Englewood, Colo. Teaneck, N.J. Kensington Group plc and other Blackstone Tactical Opportunities Advisors; $2,543.7 Thrifts and mortgage finance 9/9 12/8 19 Investec mortgage assets TPG Special Situations Partners Manhattan 1,147 +14.8% MFI Holding Corp. Post Holdings Inc. $2,499.5 Packaged foods and meats 4/16 6/2 NUMBER OF GROWTH IN 20 Manhattan St. Louis DEALS NUMBER of American Realty Capital $2,446.6 announced last announced Ventas Inc. Health care REITs 6/1 Pending year in which a transactions in 21 Healthcare Trust Inc. Chicago NYC company which a NYC Manhattan was the target, company was the Sedgwick Claims Management KKR & Co.5 $2,400.0 Insurance brokers 1/27 2/28 up 1.3% from buyer in 2014—a 22 Services Inc. (unknown majority stake) Manhattan 2013 total of 1,847 Memphis, Tenn. 6 NUMBER OF U.S. China Huarong Asset Management Co. Warburg Pincus $2,366.0 Asset management and custody 8/28 8/29 DEALS announced 23 Beijing Manhattan banks 21.9K last year, up 8.3% 51,416-sq.-meter land plot in Qianhai Bay Silverstein Development Corp.7 $2,214.1 Real estate operating companies 1/23 1/23 from 2013 24 Shenzhen, China Manhattan 8 Gecina SA (27.56%) Blackstone Real Estate Advisors $2,109.4 Diversified REITs 6/6 7/29 TARGETS’ AIMS Paris Manhattan 25 Companies in finance were the most Multitenant shopping-center portfolio DDR Corp.; Blackstone Real Estate Advisors $1,975.0 Real estate operating companies 5/20 10/17 common targets for New York compa- 26 Manhattan Manhattan nies in 2014’s top 30 announced deals. Fitch Group Inc. Hearst Corp. (30%) $1,965.0 Specialized finance 12/12 Pending Number of deals Finance 27 Manhattan Manhattan 8 Waldorf Astoria NY Anbang Insurance Group Co. $1,950.0 Health care Hotels, resorts and cruise lines 10/3 Pending 5 28 Manhattan Chaoyang, China Hospitality/leisure Wheelabrator Technologies Inc. Granite Acquisition Inc. $1,940.0 3 Renewable electricity 7/25 12/19 Real estate 29 Hampton, N.H. Hills, N.J. 3 9 Entertainment 24 Hour Fitness USA Inc. AEA Investor $1,850.0 Leisure facilities 3/31 5/30 2 30 San Ramon, Calif. Manhattan Materials 2 Source: S&P Capital IQ, (212) 438-8701, www.capitaliq.com. Additional research by Suzanne Panara and Nicholas Wells. New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, Pharmaceuticals and Bergen, Essex, Hudson and Union counties in New Jersey. List includes announced transactions for which terms were disclosed and that were not canceled and in which a buyer or target was based in the New York area. 2 Includes private-equity deals. Data on announced deals are as of Jan. 31, 2015. 1-Additional parties: BC Partners; Caisse de dépôt et placement du Québec; Longview Asset Management. 2-Additional parties: BC Invest- Utilities ment Management Corp.; John Hancock Financial Corp.; Macquarie Infrastructure and Real Assets Inc. 3-Additional party: Partners Group Holding AG. 4-Additional parties: Individual investors; Stone Point Capital. 5- 2 Additional party: Management of Sedgwick Claims Management Services Inc. 6-Additional parties: Apax Partners; Goldman Sachs Group, merchant banking division; Khazanah Nasional Berhad; China Life Insurance Insurance Assets Management Co.; COFCO Corp.; Fosun International Ltd.; CICC Jia Cheng Investment Management Co.; CITIC Securities International Investment Management (HK) Ltd. 7-Additional parties: Shenzhen 1 Professional services Qianhai International Energy Financial Center Co. 8-Additional parties: Norges Bank; Ivanhoé Cambridge Inc.; Crédit Agricole Assurances S.A. 9-Additional party: Ontario Teachers’ Pension Plan 1 Retail FOR ALL CRAIN’S LISTS, GO TO WWW.CRAINSNEWYORK.COM/LISTS 1 Source: S&P Capital IQ

February 16, 2015 | Crain’s New York Business | 13 20150216-NEWS--0014-NAT-CCI-CN_-- 2/12/2015 6:28 PM Page 1

REPORT WALL STREET

buy the company with Valeant Phar- maceuticals fell through, Allergan Big hedge funds defy industry woes was purchased by Actavis, resulting in a huge gain for him. His short po- sition on Herbalife, a bust in 2013, Continued from Page 11 for most of his clients. publicly disclosed the huge fees it was hedge-fund allocations.” was also a big gainer. at Pershing Square, at It appears that the “smart” mon- paying for poor performance from its Those institutions are gravitat- Mr. Icahn’s favorite targets last Icahn Partners and Daniel Loeb at ey—increasingly institutional—is 24 hedge-fund managers and six ing toward the big brand names in year were Apple and medical-device Third Point, though their perform- also staying invested in hedge funds, fund-of-funds. With less than a 2% the industry, directing more of their maker Hologic. His funds were up ance last year was mixed. despite their dismal performance allocation to the asset class, Calpers money to the biggest funds and 4.4% though Sept. 30. Some of Mr. The average fund,as measured by since the financial crisis. New York decided the program wasn’t worth making life more difficult for start- Loeb’s biggest positions were in the Hedge Fund Research (HFR) City money managers, who domi- the cost and effort. ups and smaller operations. Liqui- Amgen and eBay. His funds re- composite index of more than 2,000 nate the industry, are still attracting “Hedge funds are certainly a vi- dations of hedge funds have been turned 5.7% for the year. funds, returned just 3.33% last year, lots of cash and earning big fees. able strategy for some,but at the end trending up for the past three years versus 13.65% for the S&P 500 and of the day,when judged against their while launches have trended down. Signature industry 6.32% for Barclays Capital Govern- complexity,cost and the lack of abil- Through the third quarter last year, For New York City, hedge-fund ment Bond Index. That makes six ‘Big institutional ity to scale at Calpers’ size, the 661 funds closed and 814 were management remains a signature in- years in a row that the S&P has beat- [hedge-fund] program is no longer launched, according to HFR.“Only dustry in the financial-services sec- en average hedge-fund returns— investors want warranted,”explained Ted Eliopou- about 20% of hedge funds are worth tor,employing large numbers of peo- usually by very large margins. los, Calpers’ interim chief invest- the fees they charge,” said Mr. ple and generating major tax revenue. “Another year or two of this kind the name-brand ment officer, in a press release. Steinbrugge.“The large institution- Probably as much as half the assets in of performance, and investors will It appears, however, that few al investors want to invest in the the industry are managed out of city vote with their feet,” said Stewart funds’ other institutional investors have name-brand funds.” offices,say observers.As the financial Massey, a founding partner of advi- followed Calpers’ lead. Institutions The fastest-growing strategy, ac- capital of the world with the greatest sory firm Massey Quick & Co. now account for more than half the cording to HFR, is shareholder ac- concentration of high-net-worth in- Growing numbers of both individ- new money flowing into hedge tivism. Activists all, Messrs. Ack- vestors in the country, it is still the ual and institutional clients are ask- funds,say industry observers.While man, Icahn and Loeb pulled in $14 best place to run a hedge fund.“With ing him to defend his use of hedge those big investors are pressuring billion in new money last year. And, all the professionals coming out of funds in their portfolios.“We’ve had Last year,$76 billion flowed into the fund managers on fees, they are still said HFR President Ken Heinz, banking and asset management, it’s some disappointments, and they’ve industry—the biggest annual inflow bringing more money to the table. “With the environment we’re in, it the most dynamic location you can been exaggerated by the huge rally since 2007. Total asset levels now could accelerate further.” have,” said Mr. Heinz. in the S&P 500,” he said. stand at a record $2.85 trillion, ac- Calpers a ‘one-off’ Mr. Ackman, who manages his While the costs of running a fund Mr. Massey, however, remains cording to HFR—more than dou- “Calpers was a one-off situa- four funds out of his Seventh Av- have risen significantly —SEC regis- committed to investing in hedge ble the level at the end of 2008. tion,” said Don Steinbrugge, chair- enue offices, had a blowout year, tration is now required for funds over funds as protection from big market To be sure, the decision by the man of Richmond, Va.-based con- earning a net return of 40.4% in $100 million,and attracting money in downturns and as a source of return California Public Employees Retire- sulting firm Agecroft Partners. 2014, according to fund filings, and a crowded market has gotten not usually correlated with that of ment System (Calpers) in September “They didn’t believe they could probably drawing upward of $1 bil- tougher—the dream lives on for en- either stocks or fixed-income in- to abandon its $4 billion hedge-fund identify managers that outperform, lion in performance fees. trepreneurs. “There will always be vestments. He continues to recom- program sent some shockwaves so they shifted their focus to reduc- Mr. Ackman’s most lucrative tar- people who want to start up hedge mend a portfolio allocation of be- through the industry. The country’s ing costs. Most institutional in- get last year was Allergan, the maker funds,” said Mr. Steinbrugge. “The tween 20% and 30% to hedge funds largest public pension system very vestors are still increasing their of Botox. Although his attempt to upside is so significant.” Ⅲ

The return of the dealmakers 10 LARGEST EXITS BY ACQUISITION OF NYC- BASED TECH COMPANIES IN 2013 AND 2014 Continued from Page 11 land, was the largest such deal an- There will be fewer securities- Dollar value of deal group were also among the top five nounced last year, at $47.9 billion. trading jobs, lower salaries across advisers by deal value. Bank of Changes put into effect by the Trea- financial divisions and less tax rev- Acquirer America Merrill Lynch placed sury Department last year will like- enue for the city as a result. fourth. ly reduce the tax motivation for such “The M&A fee-based business “The recovery of M&A is im- deals going forward. has picked up, but it’s small and it $1.1B $800M $494M portant to the city. It’s usually ac- Two still-pending media deals doesn’t make up for the decreases Tumblr Fotolia MakerBot companied by a rising stock market were the largest announced last in trading revenue at the banks,” Industries and improving economy,” said year: Comcast’s $70.7 billion ac- said Nicole Gelinas,a senior fellow Bruce Bachenheimer, a professor of quisition of Time Warner,followed at the Manhattan Institute. Yahoo Adobe Systems Stratasys management with the Lubin by AT&T’s $67.2 billion bid for “Fixed-income trading is where School of Business at Pace Univer- DirecTV. Drugmaker Actavis they have made much of their prof- $230M $199M $160M sity. “When the bankers make this managed to be in on two top 10 its, and it’s been trending down for [x+1] Inc. FolioDynamix Inc. $120M kind of money, a lot of it gets recy- deals, acquiring both Forest Labs a while.” MicroEdge Divide cled into the New York City econ- and Allergan. The most active sec- Rocket Fuel Actua Corp. Blackbaud Google Financial dependency omy.” tors for deals were energy ($338 $50M The M&A work has been a god- billion), health care ($237 billion) Ms. Gelinas doesn’t expect the $43M send for law firms that have strug- and media and entertainment number of jobs in the securities $100M NMD Interactive Inc. gled since the financial crisis. Skad- ($208 billion). business in New York to ever recov- TapCommerce (StreetEasy) ideeli Inc. den Arps was in on the most activity, For the banks, the pickup in ad- er to the levels of 15 years ago, when Twitter Zillow Groupon advising on deals worth $534 bil- visory work and investment bank- 195,000 people worked in the in- Source: PrivCo lion, followed by Cleary Gottlieb, ing generally has helped offset the dustry. It now stands at about Simpson Thatcher, Sullivan & decline of revenue from fixed- 170,000.The city,however, remains Cromwell and Weil Gotshal, ac- income, currency and commodities highly leveraged to the success of BIG BUYOUTS cording to research from Dealogic. trading. Global investment bank- the industry.While it accounted for YAHOO’S $1.1 BILLION ACQUISITION of Tumblr in 2013 was the first billion- ing revenue of $80.6 billion last just 4% of jobs in the city, it con- dollar-plus buyout of a Silicon Alley technology company. Deal activity in the Global trend year was the second-highest total tributed 19% of total wages. Ms. city’s tech sector, however, has been ramping up for the past several years, The urge to merge has been on record after 2007, according to Gelinas worries that the winding said Sam Hamadeh, CEO of PrivCo, which tracks private-company financial worldwide,with only Japan,Eastern Dealogic data.However,poor trad- down of the Federal Reserve’s loose transactions. Buyouts and mergers have become an increasingly common Europe and the Africa/Middle East ing results from volatility in the monetary policy could present chal- exit for entrepreneurs and venture capitalists in Silicon Alley. The money region seeing decreases in deal vol- fourth quarter were cited by sever- lenges for the banks and pressure the typically gets recycled into new ventures and has helped New York become ume.The U.S.,Europe and Asia Pa- city budget. al of the large banks for disappoint- the hottest technology hub in the country. “For the first time, it feels like the cific all saw more than 50% increas- ing year-end financial results. “New York City and state have New York technology sector is here to stay,” said Mr. Hamadeh. es in announced deal values, and The bigger worry is that the become unnaturally dependent on cross-border deal activity was up postfinancial crisis landscape has Wall Street,” said Ms. Gelinas. “It —ANDREW OSTERLAND 78%, to $1.3 trillion, accounting for permanently changed for the big became a huge industry and helped 37% of total transactions. Medical- banks. The Volcker rule limiting pay for more police and social serv- device manufacturer Medtronic’s proprietary trading for federally in- ices. We don’t have other ways of economy a nice shot in the arm, the “The 2008 crisis was not just an- acquisition of Covidien, which also sured banks goes into full effect this funding the budget.” future of the securities business other downturn,” said Mr. Bachen- involved a corporate tax inversion year, and the banks have already While the current enthusiasm could present some serious chal- heimer.“We need to further diversi- for the purchaser, now based in Ire- reined in their trading operations. for dealmaking should give the local lenges for the city. fy the economy.” Ⅲ

14 | Crain’s New York Business | February 16, 2015 20150216-NEWS--0015-NAT-CCI-CN_-- 2/12/2015 6:29 PM Page 1

REAL ESTATE DEALS

private roof deck for the firm. The that. Asking rents at the property BARE BONES building is also getting a $10 million are in the $80s per square foot. Yesteryear’s $3 PSF makeover. “Fisher Brothers is thrilled at the Last year, the landlord signed a opportunity to extend our relation- lease for nearly 80,000 square feet on ship with Fortress, a dynamic, top- space goes for $100+ the lower floors with fashion compa- tier financial firm that has more ny Theory for rents in the $80s per than doubled over the past five square foot.The owner is aiming for years,” said Fisher Brothers partner hen the William Kaufman Organization bought even loftier pricing for a vacancy ex- Kenneth Fisher in a statement. 2 Gansevoort St. in the heart of the meatpacking district in pected next year. Fortress was represented by 1948, the kind of rents the nine-story, 200,000-square- “It’s not even out on the market, Howard Grufferman, a broker at foot building commands today would have been unimag- but we’re talking to interested ten- Colliers International. Fisher inable. ants about a deal with asking rents Brothers was represented in-house W“At that time, we were getting $3 of $120 per square foot,” Mr. by leasing executive Marc Packman. per square foot for space,” said Lenchner said. —daniel geiger Jonathan Kaufman Iger, CEO of If the firm is able to net rates that Sage Realty Corp.,a subsidiary of the high,they would be among the prici- 875 SIXTH AVE. William Kaufman Organization that est ever paid in the neighborhood. New tenant kicks focuses on leasing its portfolio. —daniel geiger butt on East Side ASKING RENT; TERM: $53 per Now, in a turn stunning even for a square foot; 10 years part of town that has become a pre- Investment group A new dojo is kicking into Murray SQUARE FEET: 11,600 mium shopping and office district, Hill.Professional Tae Kwon Do Inc. TENANT; REPS: F. Schumacher & Mr. Kaufman Iger and his team have expands its home has signed a 10-year lease for 2,500 Co.; Ryan Mandrell and Derek inked a deal for the penthouse at a square feet at 553 Second Ave. Myers of Newmark Grubb Knight rent of more than $100 per square Fortress Investment Group has re- The asking rent for the deal, Frank foot. In the transaction, Coronado newed and expanded its lease at which includes 1,400 square feet on LANDLORDS; REPS: Peter Braus Biosciences has leased the property’s 1345 Sixth Ave., according to the the ground floor and a 1,100- and Jim Wacht; Mr. Braus and Dennis Someck of Lee & 23,000-square-foot penthouse for 15 building’s landlords, a partnership square-foot basement, was $100 per Associates years. The asking rent for the space between Fisher Brothers and square foot. was $110 per square foot. JPMorgan Asset Management. “The owner knows Murray Hill BACK STORY: The textile supplier, whose clients include the White “The meatpacking district as a Brian Waterman and Lance Fortess is adding about 44,000 is becoming more family-oriented House and the U.S. Supreme whole has become a very popular Korman, brokers at Newmark square feet to its space at the 50- and wanted to be in the area,” said Court, will take the entire 14th floor area,”said Michael Lenchner,an ex- Grubb Knight Frank, represented story tower, bringing its total to Greg Cohen, the Douglas Elliman in the building. ecutive at Sage Realty who arranged Coronado Biosciences. 200,000 square feet. The current broker who represented the land- the deal for the landlord. “There’s For its hefty rent check, the ten- lease for the firm,which has $66 bil- lord, Carmine Musumeci. Erik Carrión of Smart City Real the great shopping and restaurants, ant will enjoy several perks at the lion under management, was set to Work on the new outpost, Tae Estate represented the tenant in ne- and it’s a place that has become in- 100-year-old property. The land- expire at the end of 2016. The new Kwon Do’s third in Manhattan, is gotiations. credibly attractive to office tenants.” lord is creating a 2,000-square-foot lease extends for 15 years beyond already underway. —adrianne pasquarelli SMALL BUSINESS Sun is shining on solar installers in the city

Gov’t incentives, from a solar renaissance that is pick- ton,D.C.-based senior analyst of re- ing up momentum. newable power at research firm IHS lower costs fuel More local firms are seeing the Energy. fruits of the NY-Sun Initiative.Gov. industry’s growth Andrew Cuomo recently commit- Challenges abound ted to put $1 billion into the pro- Certainly, New York City solar BY ANNE FIELD gram, which was created in 2012 to businesses face plenty of challenges. boost installations in the state. It is For one thing, many rooftops, espe- or Thomas Gately— funded through cially in Manhattan, aren’t suitable and his competitors— 2023. for solar-power installation. Plus, it’s a good time to be in The gover- $40M landlords who don’t pay for their the solar-power busi- nor also has in- IN PRIZES BEING tenants’ electricity aren’t always ness in New York City. AWARDED in new willing to install new solar systems. troduced a plan state contest to FMr. Gately’s firm, Green Power to wean the mar- fund small Still, many local solar-power Solutions, designs, engineers and ket gradually alternative power companies are optimistic about the POWER PLAYER: installs solar systems. It used to de- from govern- grids for local use market. Take Charles Feit, CEO of Thomas Gately’s firm rive most of its income from cus- ment-sponsored in emergencies OnForce Solar, an 110-employee has tapped rising tomers in New Jersey, owing to that energy pro- Source: NYS Energy Bronx firm that designs, engineers, local demand for Research and solar equipment. state’s incentives and renewable- grams. Mean- Development Authority installs, maintains and finances so- energy requirements. lar systems primarily in New York while, small so- neff david lar players have continued to benefit City and has been twice named to A shift in emphasis from an existing New York City Crain’s Fast 50 list of the fastest- million today from $1 million in in the “$6 million to $7 million But thanks in part to New York property-tax abatement for solar in- growing companies in New York. 2011—in part to the opportunities range” this year; he also plans to ex- state’s move last year to bolster an stallations of 20% over four years and Mr. Feit, also a Crain’s Top En- opened up by the changed rebate. pand to 20 employees in 2015, up incentive program called the NY- U.S. tax incentives of 30% until trepreneur, pointed to a change in New government policies and from three. Sun Initiative, the profitable 15- 2016,when the federal rate will drop state policy in 2013 that increased other conditions have encouraged It doesn’t hurt that the firm raised employee Manhattan-based com- to 10%. the per-watt rebate cap for small more solar businesses to start up in about $1 million from private in- pany now gets as much as 90% of its Market forces have also helped commercial projects to 200 kilo- New York City, not a traditional in- vestors in late 2014, in large part, he revenue from New York City cus- solar operators.The cost of solar pan- watts from 50,and,for larger efforts, dustry hub. Last year, co-founders said, because of the new incentives. tomers. Green Power Solutions, els has declined or stayed flat over the to 2 megawatts from 50 kilowatts, Jason Kuflik and Scott Kerner, both “It made our investors comfortable which is nine years old, generates past several years. And utility rates in allowing companies to work on big- industry veterans, started Bronx- and us comfortable that this is a ro- annual revenue in the $1 million to New York City remain among the ger projects. based Green Street Solar Power to bust marketplace,” said Mr. Kuflik.Ⅲ $3 million range, Mr. Gately said. highest in the country, prompting “We now bid on projects in the focus on financing and selling solar “We’ve completely shifted,” he residents’ interest in solar. millions of dollars as opposed to systems. To sign up for Crain’s said. “New York is on the top of the $100,000 or so a couple years ago,” Mr. Kuflik expects his profitable SMALL BUSINESS newsletter, go to His is among a number of small radar for the solar industry these said Mr. Feit. He credited the rise in company, which had about www.crainsnewyork.com/smallbiz. businesses in the city benefiting days,”said Wade Shafer,a Washing- company revenue—to about $30 $500,000 in revenue in 2014, to be

February 16, 2015 | Crain’s New York Business | 15 P016-17CL_CN_20150216final.qxp 2/12/2015 2:53 PM Page 16

PUBLIC & LEGAL NOTICES NOTICE OF FORMATION OF Notice of Qualification of HAVAS TO PLACE A CLASSIFIED AD, CALl 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PLETHORA LLC: Articles of Organi- PEOPLE, LLC. Appl. for Auth. filed zation filed with the Secretary of State with Secy. of State of NY (SSNY) on FINANCIAL RFP of NY (SSNY) on 1/13/15 . Office 11/19/14. Office location: NY County. OPPORTUNITIES IN location: New York County. SSNY has LLC formed in Delaware (DE) on MORTGAGE NOTES been designated as agent upon whom 11/14/83. Princ. office of LLC: 200 process against it may be served. Hudson St., NY, NY 10013. SSNY • Mortgages For Sale The Post Office address to which the designated as agent of LLC upon • Ranging from $149K - $800K SSNY shall mail a copy of any whom process against it may be process against the LLC served upon served. SSNY shall mail process to • Low Loan to Value him/her is: US Corporation Agents, the LLC at the princ. office of the LLC. • Accruing Default Interest @ 24% INC. 7014 13th Avenue, Suite 202 - DE addr. of LLC: 2711 Centerville Brooklyn, NY 11228. The principal Rd., Ste. 400, Wilmington, DE 19808. Call: J. Hughis @ 888-377-3872 business address of the LLC is: 15 Cert. of Form. filed with DE Secy. of William St. #32D - New York 10005. State, Townsend Bldg.,Ste. 3, 401 Purpose: any lawful act or activity. Federal St., Dover, DE 19901. Purpose: PUBLIC NOTICE General marketing, advertising, & Notice of Formation of Limited public relations services. Notice is hereby given, pursuant to Liability Company (LLC) Name: 149 law, that the NYC Department of BAYARD LLC. Articles of Organization Consumer Affairs will hold a public Notice of Formation of KASURA filed by the Department of State of PARTNERS I LLC. Arts. of Org. filed hearing on Wednesday, Febuary 25, New York on: 10/29/2014. Office 2015 at 2:00 p.m. at 66 John Street, with Secy. of State of NY (SSNY) on location: County of New York. 01/09/15. Office location: NY County. 11th floor, on a petition for Philippe Purpose: any and all lawful activities. NYC I LLC to continue to maintain, SSNY designated as agent of LLC Secretary of State of New York upon whom process against it may and operate an small unenclosed (SSNY) designated as agent of LLC sidewalk café at 33 E 60th St in the be served. SSNY shall mail process upon whom process against it may to Seward & Kissel LLP, Attn: David Borough of Manhattan for a term of be served. SSNY shall mail a copy of two years. Request for copies of the E. Stutzman, One Battery Park Plaza, process to: c/o Bryan Min, 149 NY, NY 10004. Purpose: Any lawful revocable consent agreement may Bayard Street, Brooklyn, NY 11222. be addressed to: Department of activity. 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SSNY shall mail process against it may be served and shall Group Management Services, LLC, to c/o Corporation Service Co., 80 mail process to: c/o CT Corporation Notice of Formation of Meridion WMF 35E63 LLC, a domestic LLC, Attn: David L. Schnadig at the princ. State St., Albany, NY 12207-2543. System, 111 8th Ave., NY, NY 10011, Consulting LLP filed with the Secretary filed with the SSNY on 1/16/15. Office office of the LLC. DE addr. of LLC: DE addr. of LLC: c/o CSC, 2711 regd. agent upon whom process may of State of New York (SSNY) on location: New York County. SSNY is 2711 Centerville Rd., Ste. 400, Centerville Rd., Ste. 400, Wilmington, be served. DE addr. of LLC: 1209 1/14/2015. Office location: New York designated as agent upon whom Wilmington, DE 19808. Cert. of Form. DE 19808. Cert. of Form. filed with Orange St., Wilmington, DE 19801. County. SSNY designated agent process against the LLC may be served. filed with Secy. of State of the State of Secy. of State of DE, John G. 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16 | Crain’s New York Business | February 16, 2015 P016-17CL_CN_20150216.qxp 2/11/2015 1:44 PM Page 17

PUBLIC & LEGAL NOTICES Notice of Qualification of 2403 Notice of Qualification of KGS-ALPHA NOTICE OF FORMATION OF LIMITED QUEENS PLAZA NORTH LLC. Appl. FINANCIAL SERVICES, LLC. Appl. for LIABILITY COMPANY. 14 LEROY TO PLACE A CLASSIFIED AD, CALl 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM for Auth. filed with Secy. of State of NY Auth. filed with Secy. of State of NY STREET DARLING LLC Articles of (SSNY) on 01/08/15. Office location: (SSNY) on 11/10/14. Office location: Organization were filed with the PUBLIC & LEGAL NOTICES NY County. LLC formed in Delaware NY County. LLC formed in Delaware Secretary of State of New York (SSNY) Notice of Qualification of Notice of Qualification of Mavis (DE) on 12/23/14. Princ. office of (DE) on 10/17/14. SSNY designated 1/14/15. Office location: NY County. 52EEASUN2014, LLC. Authority filed Skarloey LLC. Authority filed with NY LLC: 152 W. 57th St., 60th Fl., NY, as agent of LLC upon whom process SSNY has been designated as agent with NY Dept. of State: 1/22/15. Dept. of State on 2/4/15. Office loca- NY 10019. SSNY designated as against it may be served. SSNY shall of the LLC upon whom process Office location: NY County. LLC tion: NY County. LLC formed in DE agent of LLC upon whom process mail process to c/o Corporation against it may be served and shall formed in DE: 11/7/14. NY Sec. of on 11/5/14. NY Sec. of State designated against it may be served. SSNY shall Service Co., 80 State St., Albany, NY mail a copy of process to 14 LEROY State designated agent of LLC upon agent of LLC upon whom process mail process to the LLC at the princ. 12207-2543. DE addr. of LLC: 2711 STREET DARLING LLC, 708 Third whom process against it may be against it may be served and shall office of the LLC. DE addr. of LLC: Centerville Rd., Ste. 400, Wilmington, Avenue, 20th fl., New York, New served and shall mail process to: c/o mail process to: 60 Warren St., #6, 2711 Centerville Rd., Ste. 400, DE 19808. Cert. of Form. filed with York, 10017, attention Rubin Ferziger. CT Corporation System, 111 8th NY, NY 10007, principal business Wilmington, DE 19808. Cert. of Form. Jeffrey W. Bullock, Secy. of State, Purpose: for any lawful purpose. Ave., NY, NY 10011, regd. agent address. DE address of LLC: 1209 filed with DE Secy. of State, Div. of 401 Federal St., Dover, DE 19901. upon whom process may be served. Orange St., Wilmington, DE 19801. Corps., John G. Townsend Bldg., Purpose: Any lawful activity. ZOE HICKS MARRIAGE AND FAMILY DE addr. of LLC: 1209 Orange St., Cert. of Form. filed with DE Sec. of 401 Federal St., Ste. 4, Dover, DE THERAPY, PLLC, a domestic PLLC, Wilmington, DE 19801. Cert. of State, 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity. Notice of Formation of LEGUCA LLC. Arts. of Org. filed with the SSNY on Form. filed with DE Sec. of State, 19901. Purpose: all lawful purposes. Arts. of Org. filed with Secy. of State 9/25/14. Office location: New York 401 Federal St., Dover, DE 19901. Notice of formation of IBP Group LLC. of NY (SSNY) on 12/26/14, becoming County. SSNY is designated as agent Purpose: all lawful purposes. SAC427 111414 LLC. Appl. for Auth. Articles of organization filed with the effective on 01/02/15. Office location: upon whom process against the PLLC filed with Secy. of State of NY (SSNY) Secretary of State of N.Y. (SSNY) on NY County. SSNY designated as may be served. SSNY shall mail Notice of Formation of GOV BALL on 01/14/15. Off. loc: New York Co. 10/28/2014. Office location: New York agent of LLC upon whom process process to: The PLLC, 521 S. Marks 2015, LLC. Arts. of Org. filed with NY Orig. juris: DE. SSNY des. as agent County. SSNY has been designated against it may be served. SSNY shall Ave., Apt. 4E, Brooklyn, NY 11238. Dept. of State on 11/17/14. Office of LLC upon whom process may be as agent of the LLC upon whom mail process to c/o Zach Feuer, 548 Purpose: Marriage and Family Therapy. location: NY County. Sec. of State served. SSNY shall mail process to process against it may be served. W. 22nd St., NY, NY 10011. Purpose: designated agent of LLC upon whom c/o Robinson Brog, et al., Attn: Roger SSNY shall mail process to the LLC, Any lawful activity. Notice of formation of Tres Carnes process against it may be served and A. Raimond, 875 3rd Ave, 9th Fl., New 350 Fifth Ave, 59FL, Ste 5900, New 391 8th Avenue LLC. Arts of Org filed shall mail process to the principal York, NY 10022. Purpose: General. York, NY 10118. Purpose: Any lawful Notice of Formation of MIRACLE ON with Secy of State of NY (SSNY) on business address: 45 E. 9th St., Ste. activity. 34, LLC Arts. of Org. filed with Secy. 11/20/14. Office location: NY Co. SSNY 46, NY, NY 10003, Attn: Thomas Notice of formation of Trrigr LLC. of State of NY (SSNY) on 10/09/14. designated agent upon whom process Russell. Purpose: any lawful activity. Articles of organization filed with the Notice of Formation of BFV Office location: NY County. SSNY may be served & shall mail copy of Secretary of State of New York (SSNY) Management LLC. Arts. of Org. filed designated as agent of LLC upon whom process against LLC to principal 500A E. 87th STREET LLC B. Art. of on September 29, 2014. Office located with NY Dept. of State on 11/17/14. process against it may be served. business address: 150 W28 St, Ste 403, Org. filed with the SSNY on at 350 5th Avenue, Suite 731, New Office location: NY County. Sec. of SSNY shall mail process to Troutman NY NY 10001. Purpose:any lawful act. 01/13/15. Office: New York County. York, NY 10118. SSNY has been State designated agent of LLC upon Sanders LLP, Attn: Brett R. Baker, SSNY designated as agent of the designated for service of process. whom process against it may be Esq., 405 Lexington Ave., NY, NY Sun Arthur LLC. Arts. of Org. filed LLC upon whom process against it SSNY shall mail copy of any LLC to served and shall mail process to the 10174. Purpose: Any lawful activity. with Secy. of State of NY (SSNY) on may be served. SSNY shall mail c/o Trrigr LLC 350 5th Avenue, Suite principal business address: 254 W. 54th 12/09/14. Off. loc.: NY Co. SSNY copy of process to the LLC, c/o 731, New York, NY 10118. Purpose: St., 10th Fl., NY, NY 10019, Attn: Tom Siegel/Ringler Family LLC. Arts. of designated as agent of LLC upon Staffard Garson Properties, LLC, 747 any lawful purpose. Viertel. Purpose: any lawful activity. Org. filed with Secy. of State of NY whom process may be served. SSNY Central Park Avenue, Yonkers, NY (SSNY) on 09/13/13. Off. loc.: NY shall mail process to 52 Vanderbilt 10704. Purpose: Any lawful purpose. Notice of Formation of Francmen Notice of Formation of IMA Systems Co. SSNY des. as agent of LLC upon Ave., Ste. 403, New York, NY 10017. Jamaica Ventures LLC. Arts. of Org. LLC Arts. of Org. filed with Secy. of whom process may be served. SSNY Purpose: General. NOTICE OF FORMATION of GOONSQUAD filed with Secy. of State of NY (SSNY) State of NY (SSNY) on 12/19/14. shall mail process to c/o Robinson LLC. Arts. of Org. filed with Secy. of Office location: NY County. SSNY on 1/13/15. Office location: NY Brog, et al., Attn: Steve R. Graber, NOTICE OF FORMATION OF CNY State NY (SSNY) on DECEMBER 13, County. SSNY designated as agent Construction 701 LLC. Arts of Org filed designated as agent of LLC upon Esq., 875 3rd Ave, 9th Fl., New York, 2013. Office Location: BX County. whom process against it may be of LLC upon whom process against NY 10022. Purpose: General. with Secy of State of NY (SSNY 6/17/13). SSNY designated agent upon whom it may be served. SSNY shall mail Office Location NY County. SSNY served. SSNY shall mail process to process may be served and shall mail c/o Corporation Service Co., 80 process to: c/o The LLC, 1412 Notice of formation of Assure Funding designated agent upon whom process copy of process against LLC to principal State St., Albany, NY 12207-2543. Broadway, 3rd Fl., NY, NY 10018. LLC. Arts of Org filed with Secy of may be served and shall mail process business address: 2156 CRUGER Purpose: Any lawful activity. Purpose: any lawful activity. State of NY (SSNY) on 12/11/14. Office against LLC to principal business AVENUE APT 4G, BRONX, NEW YORK location: NY Co. SSNY designated address: 214 West 39th Street, NY, Advance 10462. Purpose: Any lawful act. Notice of Formation of PBE LLC Arts. NOTICE OF FORMATION OF agent upon whom process may be NY 10018. Purpose: Any lawful act. Global Health, LLC. Articles of Organ- Notice of formation of 817 Second of Org. filed with Secy. of State of NY served & shall mail copy of process (SSNY) on 12/15/14. Office location: ization filed with the Secretary of State against LLC to principal business EP Interiors, LLC, a domestic LLC, Avenue TC LLC. Arts of Org filed with December 4, 2014. NY County. SSNY designated as agent of NY (SSNY) on address:150 W28 St, Ste 403, NY NY filed with the SSNY on 9/16/2014. Secy of State of NY (SSNY) on 8/12/14. 140 7th of LLC upon whom process against it Principal business address is 10001. Purpose:any lawful act. Office location: New York County. Office location: NY Co. SSNY desig- Ave., NY, NY, 10011. SSNY has been SSNY is designated as agent upon nated agent upon whom process may may be served. SSNY shall mail process designated as agent upon whom DIMES BIG TIME LLC, a domestic whom process against the LLC may be served & shall mail copy of process to c/o Yiannes Einhorn, 316 E. 22nd process against it may be served. LLC, filed with the SSNY on be served. SSNY shall mail process against LLC to principal business St., 7th Fl., NY, NY 10010. Purpose: Purpose: any lawful act or activity. 11/26/14. Office location: New York to The LLC, 140 West End Ave 17G address:150 W28 St, Ste 403, NY NY Any lawful activity. County. SSNY is designated as agent NY, NY 10023. Purpose: Staging 10001. Purpose:any lawful act. MEADOWS SERVICE GROUP LLC. upon whom process against the LLC and interior design. Solid Air Design LLC, Arts of Org Art. of Org. filed with the SSNY on may be served. SSNY shall mail Notice of Formation of FOREST HILLS filed with SSNY on 01/28/15. Off. Loc.: 01/21/15. Office: New York County. process to The LLC, Attn: Ms. HOV SHORT FILM, LLC, Arts. of Org. EYE, LLC Arts. of Org. filed with Secy. New York County, SSNY designated SSNY designated as agent of the Sabrina Desousa, 143 Division St., filed with the SSNY on 10/20/2014. of State of NY (SSNY) on 02/02/15. as agent of LLC upon whom process LLC upon whom process against it NY, NY 10002. General Purposes Office loc: NY County. SSNY has Office location: NY County. SSNY against it may be served. SSNY shall may be served. SSNY shall mail copy been designated as agent upon designated as agent of LLC upon mail a copy of process to: The LLC, of process to the LLC, c/o Marissa Notice of formation of Assure Global whom process against the LLC may whom process against it may be 102 W 14th St, 2F, New York, NY Allen, 201 West 89th Street, New York, LLC. Arts of Org filed with Secy of be served. SSNY shall mail process served. SSNY shall mail process to the 10011. Purpose: to engage in any NY 10024. Purpose: Any lawful purpose. State of NY (SSNY) on 12/11/14. to: 15 Broad St., #930, NY, NY LLC, 550 Park Ave., NY, NY 10065. lawful act. Office location:NY Co. SSNY desig- 10005. Reg. Agent: David Elfenbein, Purpose: Any lawful activity. CLASSICALLY BEAUTIFUL, LLC, a nated agent upon whom process may 15 Broad St., #930, NY, NY 10005. Notice of Formation of MANGO domestic LLC, filed with the SSNY on be served & shall mail copy of process Purpose: Any Lawful Purpose. Notice of Formation of GOLDEN TANGO LLC. Arts. of Org. filed with 10/17/14. Office location: New York against LLC to principal business GUN, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on County. SSNY is designated as agent address:150 W28 St, Ste 403, NY NY NOTICE OF FORMATION OF Bernie Secy. of State of NY (SSNY) on 01/12/15. Office location: NY County. upon whom process against the LLC 10001. Purpose:any lawful act. Young Entertainment Enterprises, 01/20/15. Office location: NY County. Princ. office of LLC: c/o Rosenberg & may be served. SSNY shall mail LLC. Articles of Organization filed SSNY designated as agent of LLC Estis, P.C., 733 Third Ave., NY, NY Notice of Formation: Greenpoint process to c/o Alan Markle WMSHB, with the Secretary of State of NY upon whom process against it may 10017. SSNY designated as agent of Pencil Works LLC, files with SECY of 101 Larkspur Landing Cir., Ste. 200, (SSNY) on November 11, 2014. be served. SSNY shall mail process LLC upon whom process against it may State of NY on 11/19/14. Off. Loc.: Larkspur, CA 94939. General Purposes. Office location: NEW YORK County. to c/o BFFA, 1430 Broadway, Ste. be served. SSNY shall mail process NY County. SSNY designated as SSNY has been designated as agent 1208, NY, NY 10018. Purpose: Any to the LLC at the addr. of its princ. PAIGE PROPERTIES LLC, a foreign agent of LLC upon process may be upon whom process against it may lawful activity. office. Purpose: Any lawful activity. LLC, filed with the SSNY on served. SSNY shall mail process to: be served. The Post Office address Notice of Formation of HILL HOUSE 12/12/14 under the fictitious name 160 6th Ave., #3, NY, NY 10013. to which the SSNY shall mail a copy Notice is hereby given a license, NY LLC. Arts. of Org. filed with Secy. Paige Properties NY LLC. Office Purpose: Any Lawful Activity. of any process against the LLC number (PENDING) for on-premises of State of NY (SSNY) on 12/17/14. location: New York County. SSNY is served upon him/her is: 45 West Liquor has been applied for by the NOTICE OF FORMATION OF HEADWIN Office location: NY County. SSNY designated as agent upon whom 60th Street, #10D, New York, NY undersigned to sell liquor at retail in INTERNATIONAL LOGISTICS LLC. designated as agent of LLC upon process against the LLC may be 10023. The principal business a Restaurant under the Alcoholic Application for Authority filed with whom process against it may be served. SSNY shall mail process to address of the LLC is: 45 West 60th Beverage Control Law at 1087 the Secretary of State of New York served. SSNY shall mail process to The LLC, 94 Sturge Ridge Rd., Street, #10D, New York, NY 10023. Broadway, New York, NY 11221 for (SSNY) on 11/13/2014. Office location: c/o Paul Wrobleski, Clarfeld, 560 Wilton, CT 06897. General Purposes. Purpose: any lawful act or activity. on premises consumption. 1087 NEW YORK County. LLC formed in White Plains Rd., Tarrytown, NY Broadway Inc. Notice of Qualification of Barclays TEXAS on 07/02/2014. SSNY has Qualification of Blackstone Tactical 10591. Purpose: Any lawful activity. Wealth Advisor Series - International been designated as an agent upon Opportunities Fund (KG Co-Invest) L.P. Value Equity III L.P. Authority filed with whom process against it may be Authority filed with the Sect of State Notice of Qualification of HAVAS Notice of Qualification of TribeTats NY Dept. of State on 1/8/15. Office served. The Post Office address to of NY (SSNY) on 1/20/15. Office Loc: WORLDWIDE, LLC. Appl. for Auth. LLC. Appl. for Auth. filed with Secy. location: NY County. Princ. bus. addr.: which the SSNY shall mail a copy of NY County. LP formed in Cayman filed with Secy. of State of NY (SSNY) of State of NY (SSNY) on 10/30/14. 200 Park Ave., NY, NY 10166. LP any process against the LLC served Islands on 12/2/14. SSNY has been on 03/20/14. Office location: NY Office location: NY County. LLC formed in DE on 11/17/14. NY Sec. of upon him/her is: 1271 AVENUE OF designated as agent of LP upon County. LLC formed in Delaware (DE) formed in Delaware (DE) on 10/20/14. State designated agent of LP upon THE AMERICAS, C/O RAYMOND whom process against it may be on 09/20/07. Princ. office of LLC: Princ. office of LLC: 79 Madison Ave., whom process against it may be COUNTER, 43RD FLOOR, NEW served and shall mail process to: 200 200 Hudson St., NY, NY 10013. SSNY Fl. 3, NY, NY 10016. SSNY designated served and shall mail process to: c/o YORK, NY 10020. The principal Bellevue Pkwy, Ste 210, Wilmington, designated as agent of LLC upon as agent of LLC upon whom process CT Corporation System, 111 8th Ave., business address of the LLC is: 756 19809. Cayman Islands address of whom process against it may be against it may be served. SSNY shall NY, NY 10011, regd. agent upon PORT AMERICA PLACE, SUITE 815, LP: 190 Elgin Avenue, George Town, served. SSNY shall mail process to mail process to c/o Corporation whom process may be served. DE GRAPEVINE, TX 76051. TEXAS Grand Cayman, KY1-9005, Cayman the LLC at the princ. office of the LLC. Service Co. (CSC), 80 State St., addr. of LP: c/o The Corporation address of LLC is: 756 PORT Islands. Name/addr of genl ptr avail DE addr. of LLC: 2711 Centerville Albany, NY 12207-2543. DE addr. of Trust Co., 1209 Orange St., AMERICA PLACE, SUITE 815, from SSNY. Cert of LP filed with Rd., Ste. 400, Wilmington, DE 19809. LLC: c/o CSC, 2711 Centerville Rd., Wilmington, DE 19801. Name/addr. GRAPEVINE, TX 76051. Certificate Registrar of Exempted Limited Cert. of Form. filed with DE Secy. of Ste. 400 Wilmington, DE 19808. Cert. of genl. ptr. available from NY Sec. of of LLC filed with Secretary of State Partnerships of the Cayman Islands, State, Townsend Bldg., 401 Federal of Form. filed with Secy. of State, State. Cert. of LP filed with DE Sec. of TEXAS located at: 1019 Brazos, 133 Elgin Ave, George Town, Grand St., Ste. 3, Dover, DE 19901. Purpose: John G. Townsend Bldg., 401 of State, 401 Federal St., Dover, DE Austin, TX 78701. Purpose: any Cayman, KY1-9000, Cayman Islands. General marketing, advertising, & Federal St.-Ste. 4, Dover, DE 19901. 19901. Purpose: all lawful purposes. lawful act or activity. Purpose: any lawful activity. public relations services. Purpose: Any lawful activity.

February 16, 2015 | Crain’s New York Business | 17 20150216-NEWS--0018-NAT-CCI-CN_-- 2/12/2015 6:29 PM Page 1

FOR THE RECORD

and Recreation, and may be picked up in represented by Paul Amrich, Neil King the Blueprint Room, Room 64, Olmsted and Patrice Meagher of CBRE. The STOCK TRANSACTIONS ABOUT THIS SECTION Center, Flushing Meadows Corona asking rent was $85 per square foot. FOR THE RECORD is a weekly listing of information from the public record Park, Queens, from 8 a.m. to 3 p.m. To Following are recent insider transactions at ● that can help businesspeople in the New York area find opportunities, make inquiries, contact Michael Bounce Exchange signed a lease for New York’s largest publicly held companies Shipman at (718) 760-6705 or 30,920 square feet at 620 Eighth Ave. filed with the Securities and Exchange potential new clients and updates on competitors. michael.shipman @parks.nyc.gov. The technology company is moving Commission by executives and major To ask questions or get more information on this section, contact from a 5,500-square-foot space at 304 shareholders. Listings are in order of Crain’s research department at [email protected]. Seeks competitive sealed bids by 10:30 Hudson St. The tenant was represented transaction value.The information was a.m. on Feb. 25 for the reconstruction by Cushman & Wakefield’s Mitchell obtained from Thomson Reuters. of a natatorium at the Brownsville Barnett, Bill Lee and Richard Serko. Recreation Center. Bid documents are The landlord, The New York Times ● MasterCard Inc. (MA) NEW IN TOWN Public Access to Court Electronic Records. available for a fee of $25 made payable Co., was represented by CBRE’s MasterCard Foundation sold 282,656 Listings are in alphabetical order. by company check or money order to Ramneek Rikhy, Arkady Smolyansky, shares of common stock at prices Companies that would like to have details of the City of New York, Parks and Mary Ann Tighe, Greg Tosko and ranging from $81.98 to $84.60 per share openings published should submit ● Fifteen Hundred Astor Recreation, and may be picked up in Sacha Zarba. The asking rent was not between Feb. 2 and Feb. 5, in a descriptions following this format to 2300 Eastchester Road, Bronx the Blueprint Room, Room 64, disclosed. transaction worth $23,583,058. [email protected], with “New Filed for Chapter 11 bankruptcy on Feb. Olmsted Center, Flushing Meadows in Town” in the subject line. 5. The filing cites estimated assets of Corona Park, from 8 a.m. to 3 p.m. To ● Cyracom signed a 12-year lease for ● Bristol-Myers Squibb Co. (BMY) $1,000,001 to $10 million and estimated make inquiries, contact Michael 23,000 square feet at 41-61 Kissena Lamberto Andreotti, chief executive, ● Butter & Scotch liabilities of $1,000,001 to $10 million. Shipman at (718) 760-6705 or Blvd. in Queens. The health care exercised options on 112,500 shares of 818 Franklin Ave., Brooklyn The creditors with the largest unsecured michael.shipman @parks.nyc.gov. translation company will open its first common stock at $25.45 per share on The bakery and cocktail spot opened in claims are LBUBS 2004-C6 Bronx, New York City center on the ground Jan. 29, in a transaction worth Crown Heights. The menu includes owed $2,771,329; Irving Roth & Rubin, GOODS AND SERVICES floor of Flushing Plaza. The tenant was $2,863,125. On the same day, he sold cocktail caramel corn, pies, mini- owed $41,509; and Con Edison, owed ● Department of Education represented by CBRE’s Steve Gerhard 90,246 shares of common stock at cupcakes, pie shakes, cocktails and a $3,422.84. Requests proposals by 1 p.m. on Feb. 25 and Joshua Kleinberg. The landlord, $61.14 per share, in a transaction worth selection of savory items such as a BLT for banking services for custodial Muss Development, was represented $5,518,002. on a biscuit. ● Important Properties engineers. Proposals can be downloaded in-house by Ross Spitalnick. The asking 8 Industrial Lane, New Rochelle at vendorportal.nycenet.edu. To make rents were in the low $40s per square James M. Cornelius, chairman, sold ● Fifty Paces Filed for Chapter 11 bankruptcy on Jan. inquiries, contact the vendor hotline at foot. 50,000 shares of common stock at 413 E. 12th St., Manhattan 28. The filing cites estimated assets of (718) 935-2300 or vendorhotline $60.60 per share on Jan. 30, in a The wine bar opened in the East $1,000,001 to $10 million and estimated @schools.nyc.gov. RETAIL transaction worth $3,029,975. He now Village. Marco Canora’s space, liabilities of $1,000,001 to $10 million. ● Blink Fitness signed a 20-year lease directly holds 79,464 shares. previously home to an outpost of his The creditors with the largest unsecured ● Department of Parks and Recreation for 20,500 square feet at 240 E. 54th St. Terroir chain, offers wines by the glass, claims are Ann Torelli, owed $250,000; Requests a public bid by 11 a.m. on Feb. The gym will occupy space on part of ● Hess Corp. (HES) as well as beer, sherry and cider. Dishes Citibank, owed $51,597.56; and Bank of 23 for the sale of food from mobile food the ground floor, as well as the entire John B. Hess, chief executive and are inspired by Mr. Canora’s next-door America, owed $30,000. units at various locations in Central second and third floors. The landlord is chairman, purchased 57,506 shares of restaurant, Hearth. On the menu are Park. Copies of the RFB can be JTRE Holdings. There were no brokers common stock at $69.52 per share on salads, toasts, brodo bowls and large ● One for the Money obtained between the hours of 9 a.m. involved in the transaction. The asking Feb. 2, in a transaction worth plates such as pork ragu sloppy joes, 4-6 W. 14th St., Manhattan and 5 p.m. at the Revenue Division of rent was not disclosed. $3,997,817. yoshi fried chicken and braised rabbit Filed for Chapter 11 bankruptcy on Jan. the New York City Department of Parks legs with polenta. 28. The filing cites estimated assets of and Recreation, Room 407, 830 Fifth ● Pondicheri signed a 15-year-lease for ● SL Green Realty Corp. (SLG) $10,000,001 to $50 million and Ave. To make inquiries, contact Glenn 3,360 square feet at 15 W. 27th St. The Andrew S. Levine, general counsel, ● Mociun White estimated liabilities of $10,000,001 to Kaalund at (212) 360-1397 or Texas-based Indian fusion restaurant, executive vice president and corporate 99 N. First St., Brooklyn $50 million. The creditors with the [email protected]. which has two locations in Houston, is secretary, sold 24,000 shares of common The alternative bridal shop opened in largest unsecured claims are Tom Ohara breaking into the New York market with stock as prices ranging from $124.24 to Williamsburg. The store, from jeweler Architects, owed $35,000; ADG ● Office of Labor Relations its third location. The tenant was $125.59 per share, in a transaction worth Caitlin Mociun, offers Italian lace Architects, owed $20,000; and JWW Requests proposals by 2 p.m. on Feb. 25 represented by Benjamin Kahr and $2,999,980. dresses, skirt-and-top combos and Engineering, owed $10,000. from vendors to insure and administer a Leslie Siben of LB Realty Services. The lemon-yellow gowns, as well as home group long-term insurance plan for its landlords, Kaufman Organization and ● EXLService Holdings Inc. (EXLS) goods and ceramics. ● Phoenix Refrigeration approximately 17,000 active members, Principal Real Estate Investors, were Rohit Kapoor, chief executive and vice 9 Kuhl Ave., Hicksville, L.I. which include the management, represented in-house by Kaufman’s chairman, sold 40,248 shares of ● Village Prime Filed for Chapter 7 bankruptcy on Jan. supervisory and administrative Grant Greenspan, Michael Heaner and common stock at $30.95 per share 302 Bleecker St., Manhattan 27. The filing cites estimated assets of employees of the city not covered by a Jessica Kosaric. The asking rent was between Jan. 28 and Feb. 3, in a The steakhouse opened in the West $50,001 to $100,000 and estimated collective-bargaining agreement, as well roughly $130 per square foot. transaction worth $1,245,676. Ⅲ Village. The menu features a wide range liabilities of $1,000,001 to $10 million. as a group basic life and accidental death of cuts of beef, seafood selections such as The creditors with the largest unsecured and dismemberment policy for its Chilean sea bass and diver scallops, raw- claims are United Refrigeration Inc., approximately 27,000 active and retired bar selections, starters like Maryland owed $917,638.89; Howard T.Harris, members. Proposals can be downloaded crabcakes, sides such as lobster mac and owed $517,000; and ABCO at nyc.gov/olr. To make inquiries, DEALS ROUNDUP cheese, and a full bar. Refrigeration Supply Corp., owed contact Jackney De Los Santos at $348,553.31. (212) 306-7695 or jdelossantos TRANSACTION SIZE @nyceplans.org. COMPANY MOVES TARGET/SELLERS (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE GOVERNMENT CONTRACT Verizon Florida, GTE $10,540.0 Frontier Communications Corp. SB M&A Companies that would like to have details OPPORTUNITIES REAL ESTATE DEALS Southwest Inc. and of recent moves published should submit Verizon California Inc. descriptions following this format to Following are selected contract Companies that would like to have details and related assets/ Inc. [email protected], with opportunities recently announced by New of their recent transactions appear in these (Manhattan) “Company Moves” in the subject line. York City agencies.To learn how to sell listings should email descriptions following goods and services to city government, visit this format to JKramer@crainsnewyork Office Depot Inc./ $7,959.6 Staples Inc. SB M&A ● Lindsey Thornburg Fidelity Management www.nyc.gov/selltonyc. For a searchable .com, with “Real estate transaction” in the & Research Co., InterWest 21 Orchard St., Manhattan database of current procurement notices, subject line, or enter them online at Partners, Putnam Investment The women’s clothing boutique moved visit www.nyc.gov/cityrecord. Listings are crainsnewyork.com/submitadeal. Deals are Management, Starboard to its new location from 114 Stanton St. alphabetical by category and department. listed in order of square footage. Value (Manhattan) on the . The store offers Blue Acquisition Group Inc./ $5,769.2 J.M. Smucker Co. SB M&A cloaks in a variety of colors and prints as CONSTRUCTION SERVICES COMMERCIAL Centerview Capital Holdings, well as dresses. ● Department of Design and Construction ● Publicis Groupe signed a 16-year lease KKR & Co. (Manhattan) Seeks competitive sealed bids by 2 p.m. adding 100,000 square feet to its space Vestar Capital Partners Inc. ● Manhattanville Coffee on Feb. 25 for the Snug Harbor Cultural at 1675 Broadway. The global ad (Manhattan) 167 Rogers Ave., Brooklyn Center Building H drainage company is renewing its existing Advent Software Inc./ $2,585.7 SS&C Technologies Holdings Inc. SB M&A The coffee shop opened a remediation on Staten Island. Bid 480,000-square-foot lease. The tenant Bamco Inc. (Manhattan) second location, in Crown Heights. The documents are available at was represented by Gordon Ogden and Phoebe Snow Foundation Inc., space offers a freelance-work-friendly nyc.gov/buildnyc for a $35 deposit. To Joseph Thanhauser of Byrnam Wood. endowment arm design, with pencils, outlets and make inquiries, contact Emmanuel The landlord, Rudin Management, was Bayonne Energy Center/ $720.0 Macquarie Infrastructure Co. SB M&A couches. It serves Intelligentsia coffee Charles at (718) 391-2200 at represented in-house by Robert ArcLight Capital Partners (Manhattan) and local pastries. [email protected]. Steinman. The asking rents were in the B&M Retail Ltd./ $584.3 Not disclosed (12%) SB M&A mid-$70s per square foot. Clayton Dubilier & Rice Inc. ● Department of Parks and Recreation (Manhattan) BANKRUPTCIES Seeks competitive sealed bids by 10:30 ● Chobani signed a 15-year lease for American Bible Society, $300.0 Avalonbay Communities Inc. SB M&A a.m. on Feb. 25 for the reconstruction of 33,560 square feet at 200 Lafayette St. headquarters building at 1865 Broadway/ The following listings are selected from the the electrical feeders, conduits and The Greek-yogurt company is moving American Bible Society most recent available filings by companies recreational lighting for ball fields 4 and its headquarters from upstate New York. seeking bankruptcy protection in the 5 in Pelham Bay Park. Bid documents The tenant was represented by James Selected deals announced for the week ended Feb. 5 involving companies in metro New York. Southern and Eastern Districts of New are available for a fee of $25 made Costello and Christopher Owles of SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without the participation of a financial buyer. source: capitaliq York. Information was obtained from U.S. payable by company check or money Sinvin Real Estate. The landlord, Bankruptcy Court records available on order to the City of New York, Parks General Growth Properties, was

18 | Crain’s New York Business | February 16, 2015 20150216-NEWS--0019-NAT-CCI-CN_-- 2/13/2015 7:04 PM Page 1

Worst hotel of its kind in NYC

Continued from Page 1 lords can make in rent-stabilized In November 2013, Mr. Assa identify and crack down on illegal buildings.Most of the long-term ten- bought the buildings that he would hotels. ants at the Branson pay about $2,000 later rebrand as the Branson at Fifth According to a Crain’s analysis of a month.That’s about $66 a day. and immediately started renovating city data, the twin buildings together Despite the differences, the law empty apartments.To longtime ten- have been the subject of more illegal- does not distinguish between apart- ants, he offered six-figure sums to hotel complaints than any other in ment owners who rent out their vacate. But they rejected the offers the five boroughs, resulting in nearly homes to help make ends meet and as too small for giving up their rent- $100,000 in unpaid violations. landlords who rent entire floors of a stabilized apartments just a few About two weeks ago, the de Blasio building: Either way, it is illegal to blocks from Central Park. administration sued Mr. Assa for rent out a room for less than 30 days running what the city calls an illegal- unless the resident is present. ‘I don’t feel safe’

hotel operation at the Branson along Tenants in buildings like the That same month, tourists start- buck ennis with two other residential buildings Branson accuse the mayor’s under- ed showing up.Audrey Smaltz,who ONE PROPERTY, TWO USES: For 37 years, Audrey Smaltz (below) has lived at 15 W. 55th St., he owns on West 46th Street. staffed Office of Special Enforce- has lived in a 600-square-foot pent- part of the same building complex where Crain’s rented an apartment (above) on Booking.com. Behind the hotel operation are ment (OSE) of failing to put the house at 15 W. 55th St. for 37 years, brothers Eran Suki and Ben Zion largest illegal hotels out of business. said she once saw a strange man Suky.Mr. Suky is a developer known A raucous City Council hearing in walking on the wraparound terrace for his association and shared invest- January captured their frustration. outside her apartment at night. She ments with Yoshiyahu Yosef Pinto, a Tenant advocates said short-term called the police.“That’s never hap- prominent Israeli rabbi who has been apartment rentals take much- pened,”Ms.Smaltz said.“I don’t feel described as a spiritual and business needed housing off the market, and as safe as I used to.” adviser to several New York real es- elected officials accused the de Bla- By January 2014, the first com- tate players and who this month was sio administration of not doing plaints started rolling in. The Build- sentenced to a year in prison in Israel enough to control the problem. ings Department referred them to for bribing a senior official there. That frustration is reflected in OSE,which is charged with cracking The brothers use limited-liability the 40% growth in complaints about down on this cottage industry. But corporations to rent out apartments illegal hotels, to 1,000, in 2014.The with just 12 investigators, attorneys across the city for nightly stays. The Branson accounted for nearly 10% and inspectors, OSE’s reach is limit- city has filed two lawsuits, in January of the complaints, thanks to 15 ten- ed and its response delayed, making and February,accusing them of oper- ants, a group of senior citizens who complaints difficult to verify. ating illegal hotels. The latter one made it their mission to fight back. But Branson tenants kept calling links the brothers to Mr. Assa. “We have become like family to 311. Together, the lawsuits and viola- each other,” said Marilyn Hemery, “These tenants are unusual be-

tions—along with more than a dozen who has lived in a two-bedroom at cause they are so vocal and organ- buck ennis interviews with tenants, city officials 15 W.55th St.for 44 years,and now ized,”said Sarah Desmond,executive and housing advocates—shine a pays $2,277 in rent monthly. “We director of Housing Conservation sought a restraining order and more Suky co-owns, according to a resi- light on a shadow hotel industry that are fighters.” Coordinators, an advocacy group. than $500,000 in punitive damages. dential contract of sale included in has emerged in New York in recent According to his LinkedIn pro- “They have a good understanding of The suit accuses Mr. Suky of “re- court documents and an attorney years thanks to the proliferation of file,Salim “Solly”Assa began invest- their rights, and they know their peatedly committing deceptive representing disgruntled investors Airbnb,Booking.com and other sites ing in Manhattan in strength is in sticking trade practices against tourists.” in that building. that allow opportunistic entrepre- 2002, building “lux- ASSA’S ASSETS together.” They also A second suit filed this month neurs to capitalize on record-high ury retail and hotel recently filed a lawsuit goes further. It holds both brothers Anonymous online tourism and a seemingly insatiable experiences in some 15 W. 55th St. against their landlord and Mr. Assa responsible for a much As for Booking.com’s role in con- demand for hotel rooms. of New York City’s Units 36 over building repairs broader scheme of operating illegal necting illegal hotel rentals with “In a way,Airbnb helped us,”said most distinctive 2014 complaints 62 and services. hotels in the city, alleging that two tourists, a spokesman said the firm— Tom Caylor, a writer who became a neighborhoods.” Unpaid violations 11 Eventually, the additional residential properties Mr. which is owned by the Priceline tenant advocate after his apartment His dealings have Total open penalty $16,750 Buildings Depart- Assa owns in Hell’s Kitchen, at 334 Group—has clauses in its agreements building in Hell’s Kitchen turned afforded him a 19 W. 55th St. ment started issuing and 336 W. 46th St., are rented out requiring vendors to comply with lo- into an illegal hotel. “For so many “highly leveraged Units 27 illegal-hotel viola- by the brothers on a nightly basis. cal regulations.He said Booking.com years,we were saying this is bad,and lifestyle,” as one law- 2014 complaints 20 tions. In August, a Messrs. Suki and Suky did not vets listings by visiting sites and meet- now elected officials are not looking suit against him put Unpaid violations 19 judge at the city’s En- respond to repeated calls and emails ing with property managers. the other way.” it:a Bentley and a $15 Total open penalty $75,700 vironmental Control from Crain’s. Mr. Assa did not re- But it’s the relative anonymity of million apartment in 334 W. 46th St. Board, which adjudi- spond to requests for comment. Booking.com that makes it an obvi- Hiding behind LLCs the Trump Tower on Units 3 cates quality-of-life Assa Properties Vice President ous choice for an operation like the Most New Yorkers think of Fifth Avenue. 2014 complaints 1 issues, found that Robert Lebensfeld told Crain’s the Branson. Airbnb, by contrast, re- Airbnb and other sites as a way to Handsome and, Unpaid violations 8 Messrs. Suki and company has done nothing wrong. quires the resident of the apartment rent out their apartments to make some say, charming, Total open penalty $5,400 Suky were advertis- He said in an interview that he was to post a personal profile and to some extra cash—one explanation Mr. Assa, 41, has 336 W. 46th St. ing 15 and 19 W. unaware of illegal hotel activity at communicate with guests directly. for why a Quinnipiac poll this past been able to per- Units 6 55th St. on Book- the Branson. He described it as a Judging by the two recent law- fall showed that 56% of New York- suade investors to 2014 complaints 0 ing.com as “5th Av- “fully leased” luxury rental build- suits filed by the city against Mr. ers supported the practice, com- help him buy some Unpaid violations 8 enue Suites,” operat- ing—an assertion disputed by Assa and the two brothers,OSE ap- pared with 36% who did not. Total open penalty $3,800 ing it as an illegal pears to be stepping up its efforts. high-profile build- Violations as of Feb. 13, 2015 Greta Elias, his own real estate bro- The people who have garnered ings over the years, hotel. An attorney ker from Halstead Properties. Ms. “We have been doing a lot of data the most illegal-hotel complaints, among them 6 , home representing the Branson argued Elias said her firm was hired to lease analysis using software that shows us though, operate on a different level: of the original Knickerbocker Hotel, that the penalties should not be as- 25 one- to four-bedroom apart- where the most transient use exists,” They rent out large apartment build- according to his LinkedIn profile. sessed because the “illegal transient ments for between $6,000 and said an OSE official.“When a build- ings in the heart of midtown Man- His businesses, however, have use was discontinued”after a city in- $12,000 a month, but, she added, ing is fined multiple times for the hattan and other tourist hot spots not always lived up to the successful spector visited the building. the building was still being renovat- same violation, this will generate a throughout the city, hiding behind lifestyle he projects. In 2011, the But in its decision, the ECB said ed and not ready for showings. red flag and result in further evalua- limited-liability companies to do so. Cassa Times Square Hotel & Resi- there was no “credible evidence” Mr. Lebensfeld also denied that tion of affirmative litigation against It’s a lucrative business. At the dences, a property on West 45th showing the hotel use had stopped. a relationship or partnership exists the building owner and/or operator. Branson, an 11-night stay in one of Street, filed for Chapter 11 bank- Indeed,five months later,on Jan. between Assa Properties and the “As this issue continues to get a its three-bedroom apartments in ruptcy protection. Mr. Assa sold the 4, Crain’s rented a furnished studio Suki/Suky brothers. In late 2013 lot of public exposure,” the official May 2014,for example,cost $9,121, hotel portion of the building a year apartment on the ninth floor of and early 2014, Mr. Assa picked up noted, “it makes sense there will be or $276 per bedroom per night. An- later but was sued for $20 million by 19 W. 55th St. for one night for three of Mr. Suky’s properties: the more litigation moving forward.” other tourist paid $1,407 for a two- contractors and subcontractors who $225 through Booking.com. MAve Hotel on East 27th Street As of last week,booking engines bedroom unit for three nights, or had worked on the 45-story tower. It was rented to Crain’s by NY and two Restaurant Row buildings including Expedia still displayed $234 per bedroom per night. His investors have also felt City Stay, a limited-liability firm on West 46th Street. photos of “5th Avenue Suites,” but That’s a slight bargain for burned. Investors in 940 Eighth run by Mr. Suki. Its address is 440 “We’ve bought a few of Ben informed customers, “This hotel is tourists, who pay an average hotel Ave. and 511 Ninth Ave. alleged in W. 41st St., a 13-story residential Suky’s assets out of bankruptcy,”but currently unavailable on our site.”Ⅲ room rate of around $300 in the city. a suit filed in 2013 that Mr. Assa property his brother co-owns. there is no business connection with At the Peninsula Hotel, kitty- used the buildings as his “private The address is notable: In Janu- Mr. Suky, Mr. Assa said. Nicholas Wells contributed to this article. corner to the Branson,rooms start at piggy bank,”taking “millions of dol- ary, the city alleged in a lawsuit that Still, as recently as October, Assa $695 a night in February. lars in investor funds for himself and Mr. Suky rented out most of the Properties had plans to purchase the LISTEN to a discussion at But it’s far more money than land- a network of affiliated companies.” building’s 96 units nightly and 440 W. 41st St. property that Mr. CrainsNewYork.com/podcasts

February 16, 2015 | Crain’s New York Business | 19 20150216-NEWS--0020-NAT-CCI-CN_-- 2/13/2015 5:44 PM Page 1

Network could transform care Stringer speaks up

Continued from Page 3 ter, cheaper and more efficient. Un- nect, which ranges from $5,000 to Continued from Page 3 funds that compose the city’s pension “That’s totally inappropriate,” necessary tests contribute to the es- $10,000 for a small practice. Partnership for New York City.“This system. The investments have be- said Gail Girardet, a mother of 18- timated one-third of medical means a lot to the New York business come a major concern in recent years. year-old twins, when she learned of spending that is wasted. Public rollout community, which is used to politi- Skyrocketing pension obligations the age-triggered blackout. Her son “When you duplicate tests, the New York City has the highest cians who will sacrifice truth for a have compelled the city to increase its became ill at a young age and need- costs to the system are enormous,” number of doctors who have not yet headline.” annual contribution sixfold, while ed many follow-up consultations— said Dr.Salvatore Volpe,a family doc- connected to the network, said Mr. Stringer has sidestepped var- fees paid to investment managers which she arranged.“At 12 or 13, he tor based on Staten Island. “Patients David Whitlinger, who heads the ious PR landmines, staying silent have soared to about $400 million a wasn’t even able to talk to a doctor; think that doctors already have all eHealth Collaborative. As a result, during the recent dustup between year, despite mixed results. he didn’t understand what was hap- their information. It’s just not true.” the last parts of the system will roll Mayor Bill de Blasio and his Police “He’s functioned like every other pening,” she said. Dr.Volpe sits on the board of the out upstate in March, and then in Department, even as the spiraling comptroller,” said John Murphy, a Privacy advocates say being able New York eHealth Collaborative, a the city starting in September. controversy sucked in other elected former executive director of the New to hide sensitive information,such as nonprofit that controls the new net- And what of patients, many of officials, including Council Speaker York City Employee Retirement on reproductive or psychiatric care,is work,which will eventually be treat- whom have yet to learn about the Melissa Mark-Viverito,who was tar- System and a critic of the city’s pen- key to gaining patient trust.But doc- ed as a public utility.He is deeply en- project? Mr. Whitlinger said back- geted by police union leaders. sion governance since resigning after tors argue that allowing patients to thusiastic about its possibilities. ers want to get doctors and hospitals a scandal in 2005. hide part of their record undermines “If I refer you to a cardiologist onboard before they launch a public No meetings with mayor Mr. Stringer argued that he has their ability to provide treatment. and send a copy of your ECG, med- campaign, which is planned for this “In the Madisonian sense of outlined a plan to reform New York’s ical history and physical, she won’t summer. But critics have faulted checks and balances, the office of the $160 billion , and that ‘Unanswered questions’ have to spend 15 minutes getting that strategy. comptroller often serves as the closest his approach to settling claims against The network’s complexity has that history from you.She’ll verify it When the state posted the pro- thing to a check on the mayor,” said the city has been fiscally prudent. He made funding a tough sell.The state maybe in five minutes. And you posed laws to regulate the network Kenneth Sherrill, professor emeritus signed off on a $17 million settlement Senate rejected a 2014 budget pro- don’t have to take time out of your for public comment in late October, of political science at Hunter College. for three wrongful-conviction claims, posal to fund the network at $55 life to go for blood tests,” he added, it did not hold a public hearing. But Mr. Stringer might have over- and is reportedly negotiating with the million, while the Assembly slashed “because you and I already did it.” Amid 178 pages of comments played that role last August when he family of Eric Garner on its $75 mil- the figure to $40 million. Yet doctors not involved in the DOH received on the laws, not one accused the mayor of rolling out his lion civil-rights claim against the city. “We said no because we had a lot network tell a different story.Sever- came from a patient. treasured prekindergarten expansion “He’s been aggressive in settling of unanswered questions,” Sen. al interviewed by Crain’s weren’t “Fostering patient trust in the before the comptroller’s office had claims,” said Mr. Liu. “Settlements Kemp Hannon, a Long Island Re- aware of its existence. system is not only essential to en- approved all the contracts,noting that are a tricky issue. … Scott is carving publican who chairs the Senate More worrisome, while the vast suring the integrity and quality of one vendor once had an employee ac- his own with regard to claim set- Health Committee, said at a Feb. 2 majority of hospitals have started to one-on-one exchanges with health cused of possessing child pornogra- tlements. It seems like he’s on the hearing. He remains skeptical of a connect to the network, private care providers,” the New York phy, and another had failed to screen right track, but time will tell.” $95 million executive budget pro- physicians are far behind. Only 19% Civil Liberties Union wrote in workers for child-abuse allegations. Carol Kellermann, executive di- posal to fund the network over two of doctors were capable of connect- October to the state Health De- The mayor’s program went ahead rector of the Citizens Budget Com- years.“We are looking for details on ing to the network as of October,ac- partment, “but also in the overall without a hitch. mission, praised Mr. Stringer’s insis- where the money went and what cording to the eHealth Collabora- success of comprehensive health in- The two Democrats have not met tence that City Hall shift hundreds of kind of progress was made,” he said. tive. The state can’t force them to formation exchange.” Ⅲ one-on-one since. Mr. Stringer ac- millions of dollars of teachers’ pay to Early studies show that when connect to the network, as it can do knowledged that no meetings have the current budget. doctors have access to a patient’s full with hospitals or clinics. Many doc- LISTEN to a discussion at been scheduled, either. “It may seem dry to the outside records, health care delivery is bet- tors balk at the one-time cost to con- CrainsNewYork.com/podcasts “I don’t count the number of world,” she said. “But from the point events I go to with the mayor,”he said of view of doing the job that the over coffee at a Chelsea diner.“I don’t comptroller is intended to do, I think think the public cares at all about that. he’s been excellent at that.” Weight Watchers sheds value They want to know that someone’s Some experts say Mr.Stringer has watching out for the fiscal health of done little to curb pension-fund in- the city.” vestment fees; $112 million was Continued from Page 1 Times Co. and Aéropostale. “24/7 expert chat” function. It also About half of New Yorkers ap- shelled out just to hedge-fund man- changes that have hammered estab- “This company is at a critical in- has entered into partnerships with prove of the job Mr.Stringer is doing, agers in the past 12 months. lished media companies and retail- flection point,”said R.J.Hottovy,an tech-savvy upstarts like FitBit and according to a December Quinnipiac ers. Tech-savvy upstarts flush with analyst at Morningstar.“It isn’t clear Jawbone. poll,but a little more than a third don’t Reform plan coming soon venture-capital funding have flood- that they’ll ever be able to charge know enough about him to have an Mr. Stringer said he expects to ed the $60 billion weight-loss busi- what they used to because aspects of Missing out on alliances opinion. It’s a problem that many unveil a plan to streamline manage- ness, and a management team that their business have become com- But tech trends are only part of comptrollers have had. ment of the five pension funds soon. took over Weight Watchers in 2013 moditized.” the problem. The company, Mr. Stringer took on a heavy- Such a proposal was introduced and is struggling to defend its position. Weight Watchers, which majority-owned by a European weight in his own party again last then abandoned by Mr. Bloomberg wouldn’t comment for this article, private-equity firm since 1999, also month, when he was the first city of- and Mr. Liu, who failed to line up Investors are wary certainly isn’t the only company to has missed chances to expand by ficial to call on Sheldon Silver to step the necessary union support first. “We have great potential to make hit hard times in its field. Shares of forming alliances with retailers who down as Assembly speaker. But he Mr. Murphy, the former pension Weight Watchers a more inviting Herbalife, a maker of nutritional cater to potential customers. For in- did so in a press gaggle, overshadow- official, calls consolidation “smoke and inclusive brand,” Chief Execu- supplements, have lost half their stance, drugstore chains like Wal- ing the speech he had just given about and mirrors” that won’t reduce the tive Jim Chambers said on a confer- value since the summer. Nutri- greens and CVS have begun devel- his first-year accomplishments and fees paid to hedge-fund managers. ence call last autumn. system’s revenue has fallen by a fifth oping their weight-loss programs second-year priorities. But the reform would make the Maybe so, but investors are bet- in the past three years. Jenny Craig for shoppers rather than teaming up Mr. Stringer touted his work as funds more nimble. Mr. Stringer ting big that the effort won’t work. A was acquired two years ago by a pri- with Weight Watchers. Nutri- comptroller: his directive to track said he is working behind the scenes larger percentage of Weight Watch- vate-equity firm with less than $100 system products are now sold at information-technology contracts to sculpt a plan that gets approval ers’outstanding shares have been sold million at its disposal; previous Walmart stores after being available and prevent another scandal like rather than just headlines. short than any other company listed owner Nestlé had paid $600 million via home delivery for years. (The CityTime; his refinancing of city’s His cautious approach could pay on the New York Stock Exchange. for the company in 2006. Weight Watchers line of packaged debt;and ClaimStat,which tracks le- off: It’s no secret that Mr. Stringer “Weight Watchers is about dues- The established weight-loss com- foods is owned by Heinz.) gal claims against the city, part of his wants to be mayor. He was in the paying members attending support panies are losing ground to fitness “The company always believed effort to head off costly lawsuits. 2013 race for a time and has already meetings at a time when consumers apps like MyFitnessPal and exercise they knew the weight-loss market As the city charter mandates, he opened a campaign fund for an un- look to apps for personalized trackers such as FitBit. Although better than anyone,” said John has audited municipal services, initi- declared office in 2017. weight-loss advice and expect dieticians consider many of these LaRosa, research director at ating 38 in 2014. Mr. Liu started But even if Mr. de Blasio’s may- things to be free,” said Lisa Sasson, products inferior to Weight Watch- Marketdata Enterprises, a firm that about 90 audits in his first year, but oralty implodes or Mr. Stringer a professor of nutrition and food ers’ time-tested methods, they’re tracks the business. “They missed Mr. Liu said that Mr. Stringer ap- waits seven years for the post to studies at . good enough to lure casual cus- the boat on some big opportunities.” pears to have completed more. open,crossing the street to City Hall When the company reports full- tomers. That’s in no small part be- Still, the rewards for Weight The work has “improved people’s from 1 Centre St.is not easy.The last year results next week,revenue is ex- cause apps tend to be free or low-cost, Watchers would be great if it can lives,” Mr. Stringer said, adding that comptroller to be elected mayor was pected to come in at $1.5 billion, while Weight Watchers’ base rate is ever break out of its slim-down the “creative tension” with the mayor Abe Beame in 1974, after which the $300 million below where it stood about $20 a month. (In its Super phase. Fully 69% of the U.S. adult is an important aspect of his job as an city nearly went bankrupt. four years ago. That happens to Bowl ad, the company said it would population is overweight, and 35% independent watchdog. “That was problematic,” Mr. closely match the sales decline over waive sign-up fees and offer rebates to are obese, according to the Centers But it’s by no means the overhaul Stringer said, before adding, “Who the same period by The New York new members who lose 10 pounds.) for Disease Control and Prevention. Mr. Stringer promised as a candidate knows what the future holds?” Ⅲ Weight Watchers is trying to Clearly,there are many more people for comptroller. Then, he said he LISTEN to a discussion at keep up on the tech front,launching who could attend meetings than the would boost returns, cut adviser fees LISTEN to a discussion at CrainsNewYork.com/podcasts its own app and recently adding a 30 million doing so. Ⅲ and better manage risk in the five CrainsNewYork.com/podcasts

20 | Crain’s New York Business | February 16, 2015 20150216-NEWS--0021-NAT-CCI-CN_-- 2/13/2015 4:04 PM Page 1

HELLUVA TOWN INSIDE Source Lunch A freshman councilman’s big plans PAGE 22 Out and About Ring in Chinese New Year Toy story at Met Museum PAGE 23

There will be plenty of whiz-bang playthings at Toy Fair this week, but one exhibitor is decidedly old school. Husband-and-wife team Vlad and Cristina Dragusin launched Candylab Toys after a successful Kickstarter campaign in 2013 to help fund their Dumbo- based business. They sold 3,500 wooden toy cars in 35 days and raised $102,924, far exceeding their initial goal of $20,000. DAVID BENNETT, They make 12 kinds of ’60s- executive director of style cars that cost $25 to $39 the Gotham Chamber each. “We love the midcentury Opera, said his look and wanted to have a line of company’s aim is to products and toys that hearken “complement” the back to that period,” Mr. Met, not compete Dragusin said. against it. The durable cars aren’t just for kids. “A lot of Kickstarter supporters ordered one for themselves and one for their children,” Ms. Dragusin said. By exhibiting at trade shows like NY Now and Toy Fair, they have landed retailers including the MoMA Design Store. Altogether, the cars are sold in a few dozen stores internationally, including Paris’ Colette, and on websites such as Amazon.The couple is looking to move the manufacturing of their toys from China to the U.S. and add accessories to their product line. Transformation

The ’s LGBT Community Center celebrated its $9.2 million renovation earlier this month with an art exhibit and ribbon-cutting with city and state officials. “Countless lives were saved by the LGBT center,” said Corey Johnson, an openly HIV- positive City Council member, “and countless lives continue to be saved.” The center’s auditorium, assembly halls, library and archives, which contain approximately 5,000 volumes and 190 manuscripts, were updated. Work began in 2013. In good company Executive Director Glennda Testone touched upon the center’s many new initiatives, including a Small opera groups are prospering and expanding program targeting substance abuse among LGBT youth; a even as bigger institutions are struggling or failing network of public and private service providers to help the trans community get health insurance, buck ennis jobs and housing; and an economic empowerment program BY THERESA AGOVINO for women. The center dedicated its café hat could have been a disaster for LoftOpera turned out to be a to Edie Windsor, the former IBM STAGE MONEY executive whose Supreme Court smashing success. In November, the Brooklyn-based company case overturned a portion of the debuted its version of The Barber of Seville the same week that the Defense of Marriage Act in 2013. Ms. Windsor closed the evening Metropolitan Opera was reviving a production of the Gioachino with reflections on her connection Rossini masterpiece. Rather than overshadowing the tiny $2M to the center. “It began as the only company’s interpretation, the Met’s performance brought it GOTHAM CHAMBER place for us to meet people,” she OPERA’s overall budget for said, “and it flourished into a much-needed attention and recognition. The New York Times the 2013-2014 season center for us to be who we are.” printed a joint review, praising each effort. Moreover, the Met’s —jessica kramer general manager, Peter Gelb, attended the LoftOpera premiere. ¶ “It was such an honor to have Mr. Gelb attend a performance,” said Brianna Maury, general manager and co-founder of the nonprofit,W which was formed in late 2012. “And it was our first New York Times review.” ¶ In contrast to the troubles at bigger institutions, many small opera companies are flourishing, and $316M METROPOLITAN OPERA’s their numbers are expanding. Some 33 such companies exist in New York City today, more than overall budget for the 2013- double the number a decade ago, according to Opera America, See OPERA on Page 22 2014 season travis mark travis

February 16, 2015 | Crain’s New York Business | 21 20150216-NEWS--0022-NAT-CCI-CN_-- 2/13/2015 4:06 PM Page 1

SOURCE Opera companies COFFEE: Interview by Chris Bragg RAFAEL ESPINAL Continued from Page 21 ance of The Barber of Seville. He de- a membership organization that clined to divulge the amount but promotes the art form. said, “It was a philanthropic bar- They are surviving and thriving gain.” because their budgets and number of Mr. Iseman brought Mr. Gelb to Freshman council member staged productions are only a fraction see the Barber ofSeville premiere,and of that of the big boys, and they spe- he was similarly enthused. “Small cialize in niches. LoftOpera presents opera companies are a great way to scaled-down versions of classic op- engage new audiences at a time when keeps business in mind eras staged in nontraditional settings, we really need to develop new audi- such as former factories. Gotham ences,” said Mr. Gelb. Chamber Opera sets itself apart by or the past year, fresh- industry,it’s kind of another blow to That’s a very good way to do it.If you featuring seldom-performed com- Defined mission man Brooklyn Coun- the historical aspects of the city. shop now at Trader Joe’s or Whole positions created for smaller venues. Still, it’s hard to say whether the cilman Rafael Espinal Foods, they give you paper bags for Meanwhile, Beth Morrison Projects curious operagoers who buy a $20 has chaired the Con- How did you feel about the anti- your items—and if you want a plas- focuses on contemporary works. LoftOpera ticket—where craft beer sumer Affairs Com- carriage bill that was then routed to tic bag, you need to ask for it. And I The performances are attracting is served and productions are some- Fmittee, which regulates a slew of the Transportation Committee instead think another model is if you bring growing audiences. For example, an times stopped to turn up the heat— city industries.The son of Domini- of yours? your own bag,they incentivize it and average of 340 people attended each eventually purchase a ticket to a Met can immigrants, Mr. Espinal, 30, It was very upsetting.My committee give you 10 cents, or put your name performance of LoftOpera’s Barber performance, which averages $160. grew up in Cypress Hills, Brook- and my staff were in a raffle with a gift card for of Seville in November. That was up Small companies can keep prices lyn, and says he understands the gearing up to hold a WHERE bringing your own bag. So I from an average of 136 during the down because of their lower over- need for low-income families to vote. To [the bill sup- THEY think that’s the approach they company’s maiden voyage—the head: It cost LoftOpera just $55,000 pinch every penny. At the same porters’] credit, they should take. Why put the May 2013 staging of Don Giovanni. to produce five nights of The Barber of time, he has championed some were able to cite a rea- DRANK burden on the consumer? LoftOpera’s budget is projected to Seville. The Met’s version was a re- business interests, most notably son why it was pushed VARIETY COFFEE grow to $200,000 this year, up from vival,so the price is harder to estimate, taking a stand against the proposed to Transportation.But 146 Wyckoff Ave. You’re also trying to pass $20,000 in 2013. Similarly, Gotham though recent operas have cost in the horse-carriage ban. if you look at recent Bushwick, B’klyn legislation in the wake of (718) 497-2326 President Obama’s recent Chamber Opera now attracts 7,000 $1.8 million range,and one of its most history,I think any bill varietynyc.com people a year,up nearly fivefold since expensive productions, Prince Igor in How did you make the decision to come or any regulation like executive action pertaining to the company’s founding in 2007. 2014, ran $3.5 million. out against the horse-carriage ban? this has gone through AMBIENCE: undocumented immigrants. Spacious, with Their successes are especially im- It’s not just price and budget that Coming in, my inclination was Consumer Affairs. brick walls, You have unscrupulous peo- pressive because overall U.S. opera sets the small opera companies apart toward the workers running the in- And it would have had pleasant (if loud) ple who claim they’re lawyers attendance fell 11% from 2005 to from the larger ones.David Bennett, dustry. But at the same time, I had a tough time passing. music and a giant and help you with your immi- 2013, to 2.2 million, according to executive director of the Gotham great concerns for the animals, and silver roaster in gration status, and help you Opera America. Declining numbers Chamber Opera, said his company about whether or not [animal-rights One of your upcoming back become a citizen. They have been a major problem for the has flourished because it has a de- group] NYCLASS’ accusations initiatives in the WHAT THEY charge you $5,000 to $10,000 bigger companies. Last year, the fined mission: producing operas that about how the horses were being committee is to DRANK: and they’re not lawyers, and regulate gas stations. Ⅲ Two medium Met’s efforts to cut costs brought its were written for small venues, and mistreated [were correct]. So my coffees they’re making you pay for unions close to striking. It eventual- are consequently less well known first six months, I was trying to bal- What’s the issue? services that are already of- ly slashed its budget, but still ended than works such as Carmen, which ance that. I had a really good sit- If you look at the signs PRICE: $5, fered for free by the city. Just the year with a $22 million deficit were created for large theaters. “We down with NYCLASS. And then I at the stations, they including tip come to my office, come to caused by high production costs and are seen as a complement to the Met, met with the workers.And I came to give you a cash price.Then if you go any city councilman’s office. The shrinking audiences. not a competitor,” he said. believe that NYCLASS’accusations to the pump and you use a credit president [allowed] 5 million immi- Mr. Bennett said his traditional were unfounded. card, you pay 15, 20 cents more. So a grants to come out of the dark. High overhead audience is the same as the Met’s— driver might think they’re paying Meanwhile, New York City older and affluent—and tickets range And then you were targeted by animal- $3.50, but if they don’t have cash, What’s the solution? Opera filed for bankruptcy in 2013 from $30 to $175. A key to Gotham’s rights activists? they’re paying $3.75.One bill would We’re looking to heavily regulate after burning through most of its en- success is that it isn’t striving to be- They decided to protest in front of make clear that cash is a discounted [those who claim they’re lawyers]. dowment during a decade of failed come an enormous company with all my office with a fake dead horse and price. I’m also looking to put a stick- attempts to increase audiences and that entails.“We don’t aspire to be the flood my office with phone calls. I er on the credit-card machine— One of the more colorful issues you’re contributions. Two groups are now city’s second grand-opera company,” also would say I received a lot of there’s another problem of debit ver- dealing with is regulation of costumed fighting in court to buy its assets.One Mr. Bennett said. emails from my constituents— sus credit prices.I’m going to require characters in Times Square. of them is led by Michael Capasso, Neither does Beth Morrison hard-core, local New Yorkers—and that gas stations put a sticker on the The majority are out there to make who founded and ran the Dicapo Projects, which features modern op- they were really supportive of my pump saying that debit will give you money and do the right thing.A few Opera Theater, which was consid- eras. Ms. Morrison, who started her decision. In Bushwick, East New cash price, or debit will give you are out there ending up in newspa- ered the city’s third-largest company namesake company 10 years ago,said York, Cypress Hills, it’s made up of credit price. So people don’t have to pers, going to jail. They’re afraid of but is in the midst of shutting down she strives to limit financial risk by people who have lived here 40, 50 play Russian roulette. immigration status, but we did pass after years of financial problems. passing some of costs to the venues years, and they feel in some ways a law recently to protect immigrants “The small companies just don’t that stage her productions. BMP’s that New York is under attack.They You’ve been vocally opposed to a bill from being picked up by [Immigra- have the overhead of places like the responsibilities include commission- see the changes happening,the gen- putting a 10-cent fee on plastic bags. tion and Customs Enforcement] Met,” said Marc Scorca, president ing new work, creating the piece’s trification coming. And to remove Would banning them outright be a agents from Rikers Island. So that and CEO of Opera America. The artistic vision, organizing workshops something like the horse-carriage better solution? clears out that concern. Ⅲ Met’s total budget was $316 million to develop the opera and securing a for the 2013-2014 season. In con- venue for it. However, the venue will trast, Gotham, one of largest of the pay the artists and all those responsi- PLAY/LIST People, places and things that make Rafael Espinal tick small companies, had a budget of ble for bringing the opera in front of about $2 million in the same period. audiences, as well as other operating MUSICAL CHAIRS: Mr. could relate. “It’s spent, and that quality-conscious Yet the small organizations’ fees such as marketing. Espinal served only about a young boy trickled products, and worth can’t be measured in dollars. Ms. Morrison said this approach two terms in the who has a dream. It’s down. I want I think it’s “They are expanding the definition frees her to save money so she can fo- Assembly before a great book to read to be sure the important for of opera and giving energy to the en- cus on art and create more work. Her essentially swapping if you feel like you’re consumer is consumers to tire field,” Mr. Scorca said. company develops between four to seats with ex- on a journey and protected.” support like- Frederick Iseman, a longtime five operas a year,while Gotham typ- Councilman Erik want to achieve Two of his minded board member at the Met,was intro- ically stages two major pieces.“I want gettyimages Martin Dilan, his something greater.” brothers are businesses.” duced to LoftOpera through a friend to run a boutique company,”she said. gettyimages last year and was enchanted by its However,she is also trying to cre- SIMPATICO SINGERS: former boss. accountants. staging of La Bohème. “It was so cre- ate a larger audience for operas. Like many of his CONSUMER GROWTH CHECK: ative,” said the chairman and CEO Three years ago, she and Here Arts constituents in BIG ADVOCATE: LOCAL SHOPPER: He Longtime residents of of CI Capital Partners. “I loved the Center started an opera festival in Bushwick, Mr. DREAMER: Mr. “My dad was loves visiting local Bushwick like the industrial setting. It was so hipster.” New York called Prototype, where Espinal is a big fan of Espinal very fiscally cafés and bars in his new coffee shops but Mr.Iseman was so impressed that attendance more than doubled from indie rock bands like recently read conservative. district. “Industries in don’t want the area he agreed to cover the financial 2012 to 2014, to 4,800 people. “It the Strokes (above), The Alchemist He would Brooklyn have been to turn into another shortfall of the production as well as gives us and others another platform the National and by Paulo watch every in the forefront of Williamsburg, he the deficit for the recent perform- to show our work,” she said. Ⅲ Future Islands. Coelho and dollar he providing local, said.

22 | Crain’s New York Business | February 16, 2015 20150216-NEWS--0023-NAT-CCI-CN_-- 2/13/2015 4:07 PM Page 1

OUT AND SNAPS Children’s health center raises a record $1M ABOUT by Jessica Kramer

CULTURE FIX CAREER BUILDERS TUESDAY, FEBRUARY 24 MONDAY, FEBRUARY 23 Ring in the Chinese New Year at TEDXBROADWAY seeks to address the Luckyrice’s YEAR OF central question of “What’s the best THE SHEEP PARTY. Broadway can be?” Movers and Chef Doron Wong shakers from the worlds of academia, serves a tasting entertainment, marketing and science menu featuring unite to explore the state of Broadway such dishes as lamb past and present. The event takes tartare, leg of lamb, place from 10:30 a.m. to 6 p.m. at and pumpkin and New World Stages, 340 W. 50th St. mushroom Tickets are $100 and can be

bombay sapphire east sapphire bombay dumplings. purchased at tedxbroadway.com. jason decrow-ap images decrow-ap jason Libations include Asahi beer and Bombay patrickmcmullan.com Sapphire East Gin cocktails. The festivities FRIDAY, FEBRUARY 27, WENDY FINERMAN, SIMON DOONAN and JONATHAN ADLER DR. STEVEN J. CORWIN, ELLEN CORWIN, HARVEY WEINSTEIN and run from 6 p.m. to 9 p.m. at Yunnan THROUGH SUNDAY, MARCH 1 at the Second Annual House of SpeakEasy Runnin’ Wild Gala. GEORGINA CHAPMAN at New York-Presbyterian/Weill Cornell Komansky Kitchen, 79 Clinton St. Tickets are $88 and The FOOD + ENTERPRISE conference The Jan. 28 event raised more than $200,000 for its writing- Center for Children’s Health’s fifth annual Plates for Pediatrics benefit. The Jan. can be purchased at luckyrice.com. promotes collaboration among education programs. 29 benefit generated a record $1 million for pediatric services. entrepreneurs, farmers, consultants THURSDAY, FEBRUARY 26 and funders to finance a better food Toast local food and drink at Edible system. The three-day event opens Manhattan’s GOOD SPIRITS. The evening of with an entrepreneurship clinic and cocktail and food pairings includes closes with a pitch competition. selections from dozens of places, including Times vary each day for the Tuthilltown Spirits, Catskill Distilling Co., conference, which takes place at the Black Ant, dell’anima and Luca & Industry City, 274 36th St., Brooklyn. Bosco. The event takes place from 6 p.m. to Tickets are $149 to $399 for all three 9 p.m. at the Altman Building, 135 W. days. Individual tickets are also 18th St. Tickets are $60 and can be available and can be purchased at purchased at ediblemanhattan.com. foodandenterprise.com. DON’T MISS LUNAR LANDING SATURDAY, FEBRUARY 28 jerry speier The Metropolitan Museum of Art MICHAEL N. ROSEN, DELLIN BETANCES and JERRY B. LEWIN

celebrates the Chinese New Year as alex geana at AHRC’s 35th Annual Thurman Munson Awards Dinner. The well as the 100th anniversary of its MELISSA MARK-VIVERITO, EDITH WINDSOR, GLENNDA TESTONE and Feb. 3 event took in approximately $700,000 for AHRC’s New Department of Asian Art with NEW MARIO PALUMBO JR. at the Official Ribbon Cutting & Relaunch Celebration of York City programs for those with intellectual and developmental BEGINNINGS: LUNAR NEW YEAR FESTIVAL. the LGBT Center. The Feb. 3 fete celebrated the center’s $9.2 million renovation. disabilities. The family-fun festivities include performances, interactive gallery experiences and artist-led workshops. See more of this week’s Snaps online at CrainsNewYork.com/galleries. The activities run from noon to 5 p.m. pollard don at the Met, 1000 Fifth Ave. The event is free with museum admission, which is $25 (suggested) for adults. For more information, visit metmuseum.org.

OPENING FUNDRAISERS WEDNESDAY, FEBRUARY 25, TUESDAY, FEBRUARY 24 THROUGH SUNDAY, MAY 24 The Dance Theatre of Harlem The New Museum presents 2015 TRIENNIAL: presents its 2015 VISION GALA. The SURROUND AUDIENCE, its recurring showcase event kicks off at 6:30 p.m. with a for emerging artists from around the world. reception, followed by dinner, the This year, the exhibition features 51 artists program and dancing. The and collectives from more than 25 countries, festivities take place at Cipriani and includes art in forms as diverse as sound, 42nd Street, 120 E. 42nd St. dance (featuring Niv Acosta, below), poetry, Tickets start at $1,000 and can be installation, sculpture, painting and video. purchased at The New Museum, at 235 , is open dancetheatreofharlem.org. Wednesday through Sunday from 11 a.m. to 6 p.m. (until 9 p.m. on Thursday). Tickets are SATURDAY, FEBRUARY 28 $16 for adults and can be purchased at The Gowanus Canal Conservancy newmuseum.org. hosts its fourth annual ANTI FREEZE to benefit its environmental stewardship and education programs.The night consists of dinner, drinks, dancing, live music, tarot-card readings, raffles, a silent auction and decorations of “maritime mutants.”The event takes place at 7 p.m. at Littlefield at 622 Degraw St. in Brooklyn.Tickets start at $20 and can be purchased at

ian douglas gowanuscanal conservancy.org. MARK YOUR CALENDAR…

WEDNESDAY, JUNE 10 STEP INTO THEIR OFFICE, BABY. Scottish indie band BELLE AND SEBASTIAN are back touring in support of their latest album, Girls in Peacetime Want to Dance. Although their work during their 20-year career has tended to be more wistful than wild, their latest album incorporates more

søren solkær søren dance influences than before, so be prepared to jump to the beat of the party line. The band performs at 8 p.m. at Radio City Music Hall, at 1260 Sixth Ave. Tickets are $40 to $59.50 and can be purchased at radiocity.com.

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