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GETTING on TRACK How a Little-Noticed Freight Line Plans to Help Free the City from Its Traf C Nightmare PAGE 18 CRAINSNEW YORK BUSINESS A blue Albany could have businesses seeing red P. 8 | Gearing up for e-bikes P. 10 | The List: Top-paid hospital execs P. 16 NEW YORK BUSINESS® APRIL 9 - 15, 2018 | PRICE $3.00 GETTING ON TRACK How a little-noticed freight line plans to help free the city from its traf c nightmare PAGE 18 VOL. XXXIV, NO. 15 WWW.CRAINSNEWYORK.COM CUSTOM CONTENT *2018’s Notable Women in Finance P. 21 NEWSPAPER P001_CN_20180409.indd 1 4/6/18 7:50 PM APRIL 9 - 15, 2018 CRAINSNEW YORK BUSINESS ON THE COVER PHOTO: BUCK ENNIS FROM THE NEWSROOM | BRENDAN O’CONNOR | MANAGING EDITOR Healthy conversations ONE OF THE PRINCIPAL PLEASURES of working in the Crain’s news- room is when some of the city’s top business and political leaders stop by to meet our editorial board and discuss the issues that matter to them most. Whether with aspiring politicos or trade group reps, real estate developers or special-interest lobbyists, the conversations— parts of which are on the record, others o—are consistently lively, occasionally contentious but always edifying. Last week brought Northwell Health CEO Michael Dowling, who has been I’m a big believer at the helm of the state’s largest health in creating a and hospital system—and, with 66,000 “ workers on the payroll, its largest pri- culture of vate employer—since 2002. e discus- continuous P. sion touched on a wide range of topics, 18 learning from research advances in bioelectron- ic medicine to the invaluable insights IN THIS ISSUE that Dowling gleans from talking to hospital valet parkers. UP FRONT FEATURES roughout the roughly 90-minute meeting, Dowling, who hails from Limerick, Ireland, displayed his signature candor—“Food is 3 EDITORIAL 18 TRAINING DAYS a big part of health, and we suck at it”—as well as his competitive Lessons from Albany’s history How freight rail can ease bent—“If you stick with the traditional ways of making money, you’re of chaos and corruption congestion dead.” But he also underscored that regardless of the industry, busi- 4 IN CASE YOU MISSED IT ness leaders contend with many of the same underlying issues: man- By any measure, shelter in old Park Savoy is a bargain aging supply chains, improving customer service, developing new products and retaining talent. 5 HEALTH CARE New home-care rules could Among the leaders of New York’s biggest health systems, Dow- hurt small agencies ling is the only one who isn’t an M.D. As such, he may take a more 6 WHO OWNS THE BLOCK business-centric approach to running his $11 billion operation. But A stream of development is while he acknowledges there are obstacles to collaborating closely taking shape in the Rockaways with competitors, he also sees the inherent need to work together 7 REAL ESTATE P. 48 to improve public health. “I’m a big believer in creating a culture of New hotel at JFK is a model of 48 GOTHAM GIGS continuous learning.” efciency; Hudson River Park A designer’s acrylic bags at’s a conversation we are keen to keep going. nancing battle evoke the glamorous 1950s 8 POLITICS 49 SNAPS Solid-blue Albany could have Photos from the networking business owners seeing red reception for Crain’s 40 Under Middle-Market Breakfast 9 ASKED & ANSWERED 40 class of 2018 MAY 15 Hunter College’s computer 50 FOR THE RECORD Reaching the Tipping Point science coordinator on the Our tally of the week’s buys, state’s new certication Join Crain’s as we bring together busts and breakthroughs Chieh Huang of Boxed and 10 TRANSPORTATION 51 PHOTO FINISH other founders of fast-growing Electric bicycles could soon Helping blind toddlers mid-market companies. The be out of legal limbo; subway learn to walk panel will discuss innovation, riders on commuter rail lines risk and capitalizing on trends to 15 VIEWPOINTS CORRECTIONS successfully build companies in Governors and mayors always The price of Jim Munson’s Kestrel coffee- New York. ght, but not like Cuomo and roasting machine was misstated in “Early de Blasio riser builds a fresher cup,” published April 2. NEW YORK Jason Goldman is Council Speaker Corey ATHLETIC CLUB 16 THE LIST Johnson’s deputy chief of staff. His title 8:30 to 10:30 a.m. The top-paid hospital execs was misstated in “Connecting the dots,” [email protected] and employees published April 2. Vol. XXXIV, No. 15, April 9, 2018—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of Jan. 1, June 25, July 9, July 23, Aug. 6, Aug. 20 and Dec. 24, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing ofces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire BUCK ENNIS contents copyright 2018 by Crain Communications Inc. All rights reserved. 2 | CRAIN’S NEW YORK BUSINESS | APRIL 9, 2018 P002_CN_20180409.indd 2 4/6/18 8:04 PM APRIL 9, 2018 AGENDALessons from Albany’s history of chaos and corruption o one should have been surprised last week when the Real Estate Board of New York gave $115,000 to a group trying to elect a Republican state Senate candidate in a Westches- ter County special election set for this month. Money has Nbeen pouring into that race, as it will to other Senate contests seen as com- petitive later this year. Business interests will predominantly support Re- publican candidates, seeing a GOP-controlled Senate as a rewall against legislation that favors workers over employers and tenants over landlords. e possibility of a Democratic takeover of Albany gained currency last week, when the party’s two Senate factions reunited six years aer an ugly split (see “Solid-blue New York could have business owners see- ing red,” page 8). With Democratic voters highly motivated to respond to the Trump presidency, predictions abound of a blue wave sweeping their candidates into oce in November. History supports that notion; the GOP had previously blocked at the business community’s behest. down- ballot Democrats beneted when their base turned out to elect e lessons here are several. Should Democrats again nd themselves Eliot Spitzer governor in 2006 and Barack Obama president in 2008. Be- in charge of the Legislature and the governorship, they must be deliberate. fore Senate Republicans knew what hit them, the majority they had held If they rush to pass bills for fear of quickly losing their hold on Albany, for most of four decades was gone. that’s exactly what will happen. Senate Re- What happened next became Albany The ascoes of a decade ago could publicans should resist recruiting unscrupu- lore. Suddenly ush with power and lever- lous Democrats to recapture their majority age, a few Senate Democrats ran amok, repeat if legislators put their own outside of the electoral process; dance with dragging Albany’s reputation as corrupt and interests ahead of New Yorkers’ the devil and he will lead you to hell. self-serving to unprecedented depths. De- And business groups, rather than panic, fections to the Republican conference led to should examine whether the bills Demo- chaos, and ve scheming Democrats ended up in prison. When the dust crats passed during their brief period in power did the damage that oppo- cleared, Senate Republicans were back in charge, aided by a partnership nents predicted. One measure—a 12-county payroll tax—was later pared with breakaway Dems that ended with last week’s reconciliation. back but remains a crucial funding stream for the transit system. Others Largely forgotten now is that just before all the drama, Democrats— are uncontroversial today. What the state needs most is for legislators to during their brief period of total control—enacted a number of laws that put New Yorkers’ interests ahead of their own. — THE EDITORS FINE PRINT The LinkNYC kiosks that are replacing pay phones across the ve boroughs will soon be doubling as bus countdown clocks. Over the next few weeks, kiosk screens will begin posting arrival information for the surrounding neighborhood. In 2014 a group of 11 City Council members set aside $2.8 million for bus countdown clocks despite the implementation of GPS tracking technology available on smartphone apps. BY GERALD SCHIFMAN STATS 25 WORDS OR LESS LOW WAGES, BAD BOSSES NEW YORK CITY’S home-care industry is adding workers quickly, but many of the AND THE C jobs are low-quality. Hi, Donald. Please Portion below poverty threshold “ Growth of the city’s paid-care 35.4% send us money for % workforce over the past decade, 15 5 percentage points above the 29.2% urban mass transit” overall increase 26.1% I —Alicia Glen, deputy mayor for housing TY Portion of city households and economic development, interrupt- % employing paid-care ing her interview with a Daily News 19 workers transportation reporter to plead with the Trump administration for more fed- eral funding. The president has lobbied Portion of care workers surveyed % who reported experiencing sick-time against congressional grants to build 50 violations, wage theft, harassment, Nannies discrimination or fear of retaliation and repair passenger-rail tunnels to House cleaners Home-care aides Penn Station. SOURCE: NYC Department of Consumer Affairs ISTOCK APRIL 9, 2018 | CRAIN’S NEW YORK BUSINESS | 3 P003_CN_20180409.indd 3 4/6/18 8:01 PM IN CASE YOU MISSED IT CRAINSNEW YORK BUSINESS president K.C.
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