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NEWSPAPER THE LIST ready forit Get your hospital? from insurance Health HEALTH CARE REPORT From tofashion farm sustainable sourcing sustainable sourcing of at thevanguard several fashionfirms isoneof Apparel Teel Lidow’s Boerum emergence foranindustry It’s anotable bor ethically. source andla- theirmaterials thatlookto of fashionfirms Apparel isamongahost Boerum their valuesonsleeves. for customerswhowanttowear fashion housesareclothes tailoring goodies, forfarm-to-table cravings to Justasrestaurants are catering science. industry.” justwasn’tinformation there intheapparel that andIrealized er products Iwasbuying, thatwayofthinkingtooth- applying started “I entrepreneur. lawyerturned corporate Lidow,a saidMr. way,” thought were madeinanethical decent wagesundersafeworking conditions. whoseemployees made andafactory the earth amillthatdidn’t pollute its animalshumanely, that raised alsoafarm price,but fibers attheright Apparel. Boerum brand, thefirstproducts from hisclothing sweaters, woolgoodenoughforhis find merino ing forhappysheep. Teel Lidow lastyearlook- visitedNewZealand BY ADRIANNEPASQUARELLI The fashion-consciousnow haveacon- goodatpurchasing thingsI wasvery “I forsoft searching notonly Mr.Lidow,29,was to fromHe traveled hishomeinBrooklyn See FASHION onPage28 CRAIN’S WWW.CRAINSNEWYORK.COM P. 13 P. Largest benefits consultants consultants benefits Largest E OKBUSINESS YORK NEW P. 15 srlsfreotBomeghires Bloomberg out force rules as Brain drainloomsfordeBlasio the thousands and couldruninto Layoffs havebegun law will forcelaw will ittoshedthousandsof andstate rules civil-service cision, de- asacourt drain ing amajorbrain isfac- The deBlasioadministration BY CHRISBRAGG ® administration will submitaplanto will administration occur over years. thenexttwo that 15hadlosttheirjobslastmonth. confirmed spokesman fortheagency and a go inAugust andSeptember, lettingemployees started struction ofDesignandCon- the Department source said Acity in somequarters: agencies. ofcity across dozens managers middle experienced This week,Mayor Bill deBlasio’s Bill This week,Mayor will But thereal bloodletting The upheavalhasalready begun apartments apartments Harlem 90 East 53,000 viefor RESIDENCE IN ARTISTS SWEATER STORY on a journey that is itself a selling point. thatisitselfaselling on ajourney Apparel hasbeen soldbyBoerum The clothing P. 33 P. that governmental appointmentsbe foryears. payroll been onthecity supposed tobetemporary—have theirtitlessuggest,were ers—who,as bytheendof2016. nent”employees replace mostofthemwith “perma- must Thecity ees from itspayroll. employ- thousands of “provisional” slash will detailing how thecity Commission the stateCivilService The stateconstitutiondictates oftheseprovisionalSome work- See BRAIN DRAIN onPage31 DRAIN See BRAIN OCTOBER 6-12, 2014 PRICE:$3.00 to $195. online for$150 sells product The finished GOOD VALUE: the goods. conditions makes with goodwork factory L.A.-area KNIT PICK: heavy pollutants. without using the woolintoyarn nearby millspins CLEAN WOOL: New Zealandfarm. humanely atthis treated Animals are COUNTING SHEEP: An A

buck ennis, vladlina syrkin, brett topey 20141006-NEWS--0002-NAT-CCI-CN_-- 10/3/2014 5:40 PM Page 1

EDITOR’S NOTE

Health scare FYICRAINSNEWYORK.COM There are at least two reasons to invite investment banker Stephen Berger to speak at a Crain’s health Mega-landlord takes up care conference. The audience gets fight against Airbnb an honest zinger of a public-policy critique from a former state official ne of New York’s top landlords is who has served five governors. And mobilizing against Airbnb, which the editor gets an easy way to fill his could presage a wider crackdown on Glenn Coleman O column. Here’s what Mr. Berger the controversial room-sharing company by told some 800 people last week at the city’s real estate industry. ¶ The Related Cos. the Crain’s event, which explored an $8 billion, feder- blasted out a warning to building ap images; newscom ally funded effort to change the wasteful ways of New managers to watch for tenants using Airbnb STALWART, STARTUP: Related Cos.’ Steve Ross, Airbnb CEO Brian Chesky York’s hospital industry so it can better serve the and weighed offering snitches cash rewards. ¶ state’s 5.3 million Medicaid enrollees. “We have been Related is advising its managers to troll Airbnb listings for Related-owned properties and to inform talking for what seems like forever about the need to the company’s “Airbnb marshals” of possible violators. An earlier draft of the presentation offered move away from a brick-and-mortar acute-care hos- a chance to win a $500 gift card “for every Airbnb find that you identify.”The offer was dropped pital system and create an integrated delivery system from the final draft. ¶ The effort opens a new front in the war to curtail the company in New York. built around primary care,” Mr. Berger reminded the The majority of Related’s units are subject to rent regulation, which prohibits rentals shorter than crowd. “No one has offered up their institutions for 30 days unless a leaseholder is present. Aware that tenants using Airbnb to rent out their units closure, reuse or downsizing except when financial could invite negative attention from city and state regulators, Related is going on the offensive. ¶ collapse seems imminent. Even the most desperate Airbnb argues it provides a valuable community service that allows homeowners to earn extra cash institutions have not asked to be put out of their mis- by hosting travelers and tourists. But housing advocates, lawmakers and hotel unions contend the ery.”The $8 billion effort includes waivers of antitrust tech company is exacerbating the housing crunch by incentivizing landlords to push out low- rules to encourage hospitals to collaborate regionally income tenants. ¶ Now with Related in the mix, those critics can say that they have one of the to deliver more effective care in New York, which city’s largest owners of luxury properties on their side in their widening fight against Airbnb. drops $57 billion a year on Medicaid. “It is funding to —andrew j. hawkins create ... wholesale system change,” Mr. Berger said. JPM HACKED. A cyberattack on mission approved the 1,700- “It means changing how institutions, providers, union JPMorgan Chase compromised 76 apartment Astoria Cove develop- HOORAY! million household accounts and 7 ment despite complaints of insuffi- AFTER A FIVE-YEAR renovation, the officials, community leaders, politicians and the popu- million small-business accounts. Far cient affordable housing. Under the landmarked Rainbow Room at 30 lation at large see the health care system. ... It means bigger than first reported, the breach plan, one-fifth of the units will be Rockefeller Plaza reopened Oct. 5. almost no one remains untouched. It means some began in June but wasn’t discovered affordable. … TIMES DROPS THE AX. hospital closures will be necessary. ... It will require until July. The bank said there’s no The New York Times plans to cut 100 evidence that account information, newsroom jobs through buyouts and longtime competitors to cooperate. It means being a including Social Security numbers, layoffs—7.5% of its 1,330-person hospital executive or a member of a community hos- was taken. … 7 TRAIN ON TRACK.The news staff. It is also shuttering its

pital board and seeing the regional delivery system as long-awaited 7-line extension from NYT Opinion mobile app because ap image your primary, fiduciary, legal and moral responsibility, Times Square to 11th Avenue is set of poor subscription numbers. Up to to open by Feb.24.If it does,the $2.4 25 business-side employees received OY VEY! as opposed to a historic worldview ending at the bor- billion project’s contractor will get pink slips last week. … DIGITAL.NYC GOES LIVE. AN ARMED ders of your particular institution. And it means con- nearly $5 million for meeting that The city launched its one- robber stole vincing communities that change and consolidation deadline. Originally, stop shop to connect $5,000 from the new station at investors, venture the Queens will bring better care.” This will be one hard pill for ‘They are Zoo—during West 34th Street was capitalists and Sili- daylight. New York to swallow, but it just might offer a cure. supposed to be com- poisoning the con Alley wannabes. pleted by last De- The website, pow- cember. … GRADING well … and ered by IBM, is the THIS WEEK IN CRAIN’S NYC.The city govern- the trust that first city site with the ment earned a D for .nyc domain. … its performance in we need is MICHELIN-STARRED istockphoto IN THE BOROUGHS------4 awarding contracts to eroded by EATERIES. Six city IN THE MARKETS------5 minority- and restaurants, includ- 149-year history. Ms. Garrett, the THE INSIDER ------6 women-owned busi- some of their ing Per Se and Le provost at the University of Southern nesses, according to a Bernardin, received California, will become the fourth OPINION ------10 report by Comptrol- actions’ three stars in the female to lead an Ivy League school. GREG DAVID------11 ler Scott Stringer —Police Commissioner 2015 Michelin Guide, She succeeds David Skorton, who William Bratton, on ousting REPORT: HEALTH CARE ------13 that ranked 32 agen- down from seven last will run the Smithsonian Institution cies. Just 3.9% of the problematic NYPD officers year. Daniel, for one, in Washington, D.C. … ALVIN AILEY THE LIST ------15 city’s $17.8 billion was downgraded to LEADER RETIRES. Joan Weill, 80, will CLASSIFIEDS ------26 procurement budget for fiscal year two stars. … CORNELL’S FIRST LADY. step down as chairwoman of the GOTHAM GIGS REAL ESTATE------29 2014 went to these firms,down from Cornell University named Elizabeth dance company at the end of 2014. 5% in 2012.… QUEENS PROJECT GETS Garrett its president—the first She’s held the role since 2000. NEW YORK, NEW YORK ------33 Jon Forrest Dohlin is hooked GO-AHEAD. The City Planning Com- woman in that post in the school’s —emily laermer on marine life. P. 8 SOURCE LUNCH------34

CORRECTIONS (SEE PAGE 32) STORIES TO WATCH THIS WEEK vol. xxx, no. 40, october 6, 2014—Crain’s New York Business (ISSN 8756-789x) is published weekly,except for double issues the weeks of June 23,July 7,July 21,Aug.4,Aug.18 and Dec. 22, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Oct. 6: State Oct. 8: City Oct. 9: PepsiCo Oct. 9: Ninth Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, unemployment Council hearing on announces third- annual Comic Con MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one benefits rise 4%, to a proposed 10-cent quarter earnings begins at Javits year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved. a maximum of $420 plastic-bag fee Center. a week.

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DIGITAL NY Code red hot. So, too, code schools ‘Academies’ opening all over town to teach the Web development skills that employers can’t find enough of

along with a handful of other weeks- BY THORNTON MCENERY long intensive coding courses, that put the development of the city’s A shortage of engineering workers tech workforce on a fast track. in Silicon Alley’s fast-growing start- Most are for-profit businesses up scene has spurred the rise of code backed by venture-capital funders academies that who see both a GIRLS WHO CODE helps teach novice growth industry bridge the tech gender techies in-demand Placement and a way to plug divide. Here, a class at IAC Web development the talent shortage headquarters. skills and then help rates most that could help their

place them in jobs other startup in- jessica scranton at New York com- colleges vestments expand. panies of all sizes would envy “Companies are development of the city’s engineer- all job growth of 12%. Additionally, placement success would make any and sectors. hungry for talent,” ing workforce. the more than half-million jobs that college career-development office App Academy, said Kristen Titus, According to the NYC Tech have been created by the tech indus- envious. General Assembly Chief Fullstack Acade- director of the de Ecosystem Report released earlier try pay an average hourly wage of Executive Jake Schwartz puts his my, General As- Blasio administra- this year by a coalition of business- $39.50—49% higher than the city’s school’s success rate at 90%. That sembly and Flat- tion’s NYC Tech es, employment in New York’s tech median hourly salary. has helped the school attract people iron School are among the leading Talent Pipeline project, which sector grew by 18% between 2003 Those salaries have drawn stu- looking to pay for the privilege of players to crop up in recent years, launched last month to support the and 2013, outpacing the city’s over- dents to code academies whose job- See TECH EQUATION on Page 32

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October 6, 2014 | Crain’s New York Business | 3 20141006-NEWS--0004-NAT-CCI-CN_-- 10/3/2014 7:02 PM Page 1

IN THE BOROUGHS BRONX Ferry Point teed up for growth Dump reborn as golf course drives new wave of prosperity

BY KERRY MURTHA

In 2001, Vivian Machura bought a new home across the street from a WILLING AND ABLE: 50-year-old municipal landfill at the (From left) Doe Fund workers foot of the Whitestone Bridge in the Maurice Hilliard and Courtney Bronx. She did so based on the Sparkman, Doe Fund founder promise that a swanky new golf George McDonald, and course would soon replace the workers Armani Burkett and Sriram Rosario sprawling eyesore. Thirteen years later, that has finally happened.

buck ennis “I’m just glad it’s done,” said Ms. Machura. After more than a decade of con- troversy and huge cost overruns, the Jack Nicklaus-designed 18-hole Doe Fund expands its scope course on the site of the 222-acre for- mer dump is set to open next spring. Already a verdant oasis of man- New $20 million campaign to focus on unemployment among young black men made grassy dunes with sweeping views of the East River and Manhat- dicts—an opportunity to learn job ripe for a renewed commitment by Mr. McDonald.“If we continue [as tan skyline, it sets a whole new tone BY THERESA AGOVINO skills and find permanent housing the city’s philanthropic community we are],we’ll have a generation suf- for the area.In fact,residents,business and employment. to invest in programs that address fering from neglect that doesn’t owners and local officials are betting Every day, hundreds of men wear- At its gala later this month, the economic disparities between know the difference between right that the eyesore turned eye candy will ing bright blue uniforms sweep the Doe Fund will launch a $20 mil- blacks and whites.The fund will use and wrong.” trigger rises in property values, inject city’s sidewalks as they attempt to lion, three-year campaign to ex- the money to broaden its reach to There are certainly more pro- new life into the local economy and transform their lives. They are part pand the men’s ranks by 500 people, help men in their late teens and 20s grams focused on the unemploy- help turn an isolated slice of the East of the Doe Fund’s signature Ready, for a total of 1,483. It’s the largest find meaningful employment. ment and incarceration risks black Bronx into a real draw. Willing and Able program, which fundraising drive in the fund’s 29- “The problems of our discon- men, especially young ones, face. In other words, they hope the offers homeless men—many of year history, and founder George tented youth are literally coming to Among them are efforts like My course will do for the surrounding whom are ex-convicts or former ad- McDonald believes the moment is a head—look at Ferguson,” said See DOE FUND on Page 32 See FERRY POINT on Page 12 Living-wage hike offers limited STATS AND THE CITY by Nicholas Wells ISN’T IT RICH? The Big Apple is home to 53 of the 400 richest people in the country, according to Forbes magazine. These tony New Yorkers are collectively payoff, poses some big risks worth more than $313 billion, about the same as the GDP of Malaysia. NET WORTH of David Koch, the richest New Yorker. 18,000 workers during the next five is also owed to the fact that the new $42.8BBill Gates, who tops the list, is valued at almost 4,100 workers will years, but most of those workers rule does not apply to projects where double that amount, with $80.6 billion earn more, but were already expected to be in jobs incentives have already been grant- that would command pay above that ed.Those include the colossal shop- INCREASE in Rupert Murdoch’s creating new jobs threshold. The actual number of ping malls being built at Hudson +0.7%fortune since last year— may get harder workers who would see an income Yards on the West Side and the the largest increase of any New Yorker. World Trade Center, on Staten Is- He is now worth $14 billion land, and in Willets Point, Queens, BY DANIEL GEIGER New rule won’t that together have received hun- AMOUNT hedge- dreds of millions of dollars of public $4,373fund manager The executive order Mayor Bill de apply to some subsidies and will employ thousands John Paulson (No. 34) earned each Blasio issued last week that requires of workers. minute in 2013, for a total of $2.3 billion tenants at city-subsidized projects huge malls now Meanwhile, higher wages man- to pay their low-wage employees dated for future projects could make NUMBER more looks likely to have a limited being built it more difficult for developers to of female New Yorkers on the list. Joan Tisch impact—and could even make it build them, real estate analysts said, 1ranked 185th, with a net worth of harder to create entry-level jobs in possibly counteracting the mayor’s $3.1 billion the poorer neighborhoods that need objective of creating better-paying them most, critics said. jobs by preventing real estate devel- TOTAL charitable contributions Mr. de Blasio lifted the hourly boost is closer to 4,100 retail and opments that would house those from Upper East Side ZIP code 10021, rate under New York City’s living- restaurant employees, according to new positions from getting out of $457.9Mthe highest in the nation wage law to $13.13,up from $11.90, an analysis by the Economic Devel- the ground to begin with.That’s be- Sources: Forbes, Crain’s research, Institutional Investor’s Alpha, Chronicle of Philanthropy, CIA Factbook for workers who do not receive ben- opment Corp. cause retailers who are forced to of- istockphoto efits. The mayor said the order The modest number of New fer higher wages will look to recoup ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY would raise the wages of about Yorkers who will see their wages rise See LIVING WAGE on Page 31

4 | Crain’s New York Business | October 6, 2014 20141006-NEWS--0005-NAT-CCI-CN_-- 10/3/2014 5:41 PM Page 1

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Blow the whistle, Learn More save the company?

-3 Communications is a Manhattan-based defense contractor whose revenue has tripled since early last Ldecade.The company grew by making more than 50 HR SERVICES | EMPLOYEE BENEFITS | PAYROLL ADMIN | RISK MANAGEMENT acquisitions. But this past July, L-3 warned investors that it would have to “revise” three years’ worth of financial statements because of accounting problems. Join our List for Event Notifications and Email Alerts Late last month, it announced that it would take $164 million in charges—almost twice as much as it initially indicated when the issue came to light this summer. www.CrainsNewYork.com/Newsletters What’s most interesting about this case is that the accounting troubles were identified by a whistle-blower. More about L-3 in a minute, but first a word about whistle-blowers.

Whistle-blowers identified which people who see bad conduct problems like price-fixing at Archer come forward. It doesn’t matter Daniels Midland and accounting how loud someone blows the whis- fraud at Enron and WorldCom. But tle if the referees are wearing never have they possessed the earplugs.” power that they do now. L-3 seems like it took its The Justice Department, the whistle-blower seriously.The com- IRS, the Securities and Exchange pany said in July that it had uncov- Commission and other authorities ered misconduct and accounting er- are offering big sums to insiders rors in its aerospace division, which who bring useful evidence of finan- would result in $87 million worth of cial fraud.Just so nobody misses the charges.The firm’s stock fell by 12% point, U.S. Attorney Preet Bharara after the announcement. In late said at a forum sponsored by Crain’s September, L-3 reported material last week that corporate America weakness in its internal controls and needs to foster a culture in which said it uncovered more accounting whistle-blowers aren’t just tolerat- problems. ed, but awarded by their employers Bad as the news is, the company for bringing bad news. doesn’t appear hurt in a major way. That, of course, is a tall order. It has $12 billion in annual revenue There is a “human concern that ‘If and doesn’t seem to have lost any I come forward, my career is over, government contracts as a result of no one is going sit with me at lunch, the accounting snafus. A spokes- and no one’s going to want to hire woman said that the whistle- me because I’m a troublemaker,’ ” blower is still employed by L-3. Mr. Bharara said. “And that, I Considering that employees think, has to change.” who reveal unpleasant truths all too He added: “You have to make often lose their jobs, L-3’s response sure that, whatever kind of institu- may be a sign that companies are tion it is, in the corporate world or learning to treat whistle-blowers otherwise, there is a culture in better. Ⅲ

INCREASE IN FEES collected this year by Goldman Sachs, Morgan 2%Stanley and other big Wall Street firms from underwriting, trading and other activities, according to an RBC Capital Markets estimate. If the number proves accurate, banker

bloomberg news bonuses figure to be modestly higher this year.

October 6, 2014 | Crain’s New York Business | 5 20141006-NEWS--0006-NAT-CCI-CN_-- 10/3/2014 5:41 PM Page 1

COMPTROLLER THE CANDIDATE ROBERT ANTONACCI says he and certainly in the Legislature there wouldn’t have run if are plenty of them—not to support INSIDER not for the prospect of this program, then they’ll use this as public campaign an excuse,”said Larry Norden,a deputy by Andrew J. Hawkins funds. But he might not qualify for them. director at the Brennan Center, which supports public financing. Mr. Antonacci’s opponent, Flailing for public financing Comptroller Thomas DiNapoli, sup- ports publicly financed elections but he guinea pig for publicly financed campaigns in New did not participate in the pilot pro- York is dying. Robert Antonacci, the Republican gram after its approval by the state Legislature in March. The incum- candidate for state comptroller, is $70,000 short of the T bobantonacci.com bent, who would have had to return $200,000 in small gifts he needs to get $1.2 million in public large donations he’d collected for matching funds.The sole participant in the state’s pilot Public financing of candidates is in favor.But if Mr.Antonacci fails to several years, called the program “a program shows little optimism that he’ll reach the threshold likely to be a top issue in the 2015 qualify, critics in the Republican Frankenstein’s monster” that was state legislative session, with pro- Party and the business community created by lawmakers who either before the November election. “We haven’t been able to push gressive groups, good-government will be emboldened. didn’t understand public campaign it over the goal line,” he said soberly.“We may not hit it.” advocates and unions pushing hard “People looking for a reason— finance or at least didn’t believe in it. Mr. DiNapoli has about $2.8 mil- lion in his campaign coffers. The program was modeled after New York City’s widely lauded sys- tem, which provides a 6-to-1 match for donations up to $175. But in- stead of applying it to all statewide 2014 and legislative campaigns in 2014, Gov. Andrew Cuomo and legislative leaders restricted it to just the comp- Hall of Fame troller’s race. It was the most that Senate Republicans would tolerate. Proponents, who say publicly fi- nanced elections empower candi- Join Crain’s and this year’s inductees representing dates who are not independently wealthy or backed by special inter- the city’s business community at its best. ests, were in- censed by the smallness of the $70K pilot program. AMOUNT that HONOREES Critics,such as the Robert Antonacci must raise in Business Council small donations Lifetime Achievement of New York, said to qualify for Michael Bloomberg, Chief Executive Officer, Bloomberg L.P. public campaign public funds financing of any magnitude is a waste of taxpayer Karen Brooks Hopkins, President, Brooklyn Academy of Music money and invites cheating. Kenneth Chenault, Chairman & CEO, American Express Company Although Mr. Antonacci’s own party is the primary objector to pub- Henry Kravis, Co-Chairman & Co-Chief Executive Officer, licly financed elections, his viability Kohlberg Kravis Roberts & Co. depends on it. A certified public ac- Terry Lundgren, Chairman & CEO, Macy’s Inc. countant who has served as comp- Danny Meyer, Chief Executive Officer, Union Square Hospitality Group troller for Onondaga County for the past seven years, he said he would Dick Parsons, Senior Advisor, Providence Equity Partners not have sought statewide office if Steve Ross, Chairman and Founder, Related Companies not for the pilot program. He is Jonathan Tisch, Chairman, Loews Hotels scheduled to debate Mr. DiNapoli Diane von Furstenberg, Founder & Co-Chairman, Diane von Furstenberg Oct. 15, but said if he can’t reach the $200,000 threshold, “the campaign may be over by then.” monday, november 10, 2014 “We’ve tried everything,” Mr. Antonacci said. “It’s a tough pro- cipriani 42nd street, 110 east 42nd street gram to explain” to donors. 12:30 p.m. – 2:00 p.m. 12:00 p.m. – 12:30 p.m. The $200,000 target did not ini- Luncheon and Awards Ceremony tially seem challenging, but Mr. Registration and Networking Reception Norden said it might have been too Early Bird Pricing: $250 for individual ticket(s). $2,500 for table(s) of ten. high for a relatively obscure office. (A recent poll found that 52% of voters didn’t know enough about Register Today Mr. DiNapoli, a seven-year incum- crainsnewyork.com/events-halloffame2014 bent, to have an opinion.) The threshold needs to be high enough Space is limited. You must be pre-registered to attend this event. See PUBLIC on Page 31 No refunds permitted. QUOTE OF THE WEEK: ‘The world should be wary of German populists. But enough about Bill de Blasio’ For more information, contact the Events Hotline at 212-210-0739 —Home Depot founder Kenneth or email [email protected]. For sponsorship and journal advertising opportunities, Langone, roasting the mayor and contact Joanna Harp at 212-210-0278 or [email protected]. other politicians at the annual Al Smith Memorial Foundation Dinner

6 | Crain’s New York Business | October 6, 2014

20141006-NEWS--0008-NAT-CCI-CN_-- 10/3/2014 2:24 PM Page 1

BUSINESS $7.5B Business taxes collected by the city in fiscal 2014, up 12% from 2011 PEOPLE Source: Mayor’s Management Report

EXECUTIVE MOVES

SeriousFun Children’s Network: Mary Beth Powers, 52, joined the camp network as chief executive. She was previously associate vice president and campaign chief for the Newborn and Child Survival Campaign at Save the Children. Council of Urban Professionals: Brennon Marcano, 41, joined the lead- ership development organization as executive director. He was previously co-founder and executive director at Workforce Opportunity Services. New York University School of Profes- sional Studies: Donna Quadri-Felitti, 52, was promoted to academic chair of hospitality and tourism programs at the university. She was previously clinical associate professor. TANKS A LOT: Fidelis Care: Michael Byrne, 40, joined Director Jon Forrest the health insurance provider as med- Dohlin helped save ical director. He was previously med- most of the New York Aquarium’s fish after ical officer and extensivist at Well- Superstorm Sandy. point and CareMore Health Plan. Statue of Liberty- Ellis Island Founda- tion Inc.: Richard P. Flood, 39, joined the nonprofit as direc- tor of fundraising and marketing. He was previously director of market- ing and community affairs for the Whitney Museum of American Art. Sam Schwartz Engineering: Daniel Schack, 36, was promoted to director

buck ennis of planning at the transportation engineering and planning firm. He GOTHAM GIGS was previously a project manager. David Burke Group: Natalie Dulaney, 32, joined the restaurant group as director of wine. She was previously a sommelier, wine director and assistant manager at Steak House No. 316. He’s hooked on marine life Brooklyn Chamber of Commerce: Michael Pantelidis, 26, joined as direc- tor of communications. He was pre- viously director of communications Disaster redoubles NY Aquarium chief’s resolve for Councilman James Vacca. CBRE Group Inc.: Helene Jacobson, 47, Hundreds of kids clap and sway as Diego, a 375- right demeanor to be a scientist. ¶ After stints was promoted to senior managing ‘We need director in the New York tristate pound sea lion, waves his flippers to the beat of acting and running nightclubs, he enrolled in region for the valuation and advisory to get “Happy” in the amphitheater of the Wildlife Parsons to study architecture, hoping to design services group at the real estate firm. She was previously managing director. Conservation Society’s New York Aquarium. environmentally friendly buildings. His last New York City people to Few move as enthusiastically as Jon Forrest assignment, in 1997, was to create an exhibit for Department of Small Business Services: think Dohlin, even though he’s seen the show countless the aquarium. He was hooked. Building an Faiza Issa,36, times before. “It just never gets old,” said Mr. exhibit “involves animals, plus creating illusion joined as assistant about Dohlin, who has been director of the Coney and theater,” he said. ¶ His major task these days commissioner of innovation and rising Island institution since 2008 and a Wildlife is raising $41 million for a new shark exhibit to strategy. She was Conservation Society vice president since 2010. open in 2016. It’s a year behind schedule because previously director seawater of entrepreneurship initiatives in the ¶ Teaching children about marine life and the Superstorm Sandy fried the aquarium’s power Center for Economic Transformation importance of protecting it are key parts of the system. Mr. Dohlin and his staff spent 10 straight at the New York City Economic and global Development Corp. aquarium’s mission, and one that he relishes. ¶ days working to keep the fish alive, at times using HR&A Advisors: Kumar Kintala,30, warming’ Growing up in California, Mr. Dohlin, 54, had a hand-held canisters to oxygenate the water. But was promoted to principal at the eco- menagerie of mice, snakes, lizards, fish and a about 15% of the animals died.The incident nomic development, real estate and public-policy consulting firm. He was couple of free-flying parakeets in his bedroom. intensified Mr. Dohlin’s resolve. ¶ “We need to previously director. Yet it took him a while to turn his love of animals get people to think about rising seawater and Thor Equities: Jonathan Banayan,27, joined the real estate development into a career. He studied biology at Humboldt global warming,” he said. “We need to lead that and investment firm as director of State University, but, he said, he didn’t have the conversation.” —theresa agovino leasing. He was previously a retail

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leasing broker at Winick Realty Group. HeartShare St. Vincent’s Services: CORPORATE LADDER Jennifer Glover, 42, joined the nonprofit child-care agency as senior vice president of foster-care programs. She WRITING THE NEXT CHAPTER AT PENCIL was previously a manager at WellPoint- Amerigroup. JOANNA CANNON’S role at education nonprofit Pencil won’t be that of the traditional chief operating officer. Managing the HUB International Northeast: Anthony organization will only be part of her responsibilities. Much of her focus will be on strengthening Pencil’s partnerships with Giordano, 35, joined the insurance businesses and schools. “I want to make sure we develop initiatives that are as high-impact as possible,” she said. brokerage as first vice president. He was One initiative the nonprofit wants to expand with its $4 million budget is Pencil Fellows. The program places public-high- previously senior vice president at Krauter & Co. school students in internships at various companies including JPMorgan Chase, Bloomberg LP and JetBlue Airways. Jacobs Associates: Bade Sozer, 39, was “These students have high potential and have demonstrated success in core academic areas, but they lack the social promoted to associate at the consulting capital and experience it takes to succeed in today’s labor market,” Ms. Cannon, 40, said. One-fourth of the city’s high- engineering firm. She was previously a school students say they don’t have a parent or adult supporting their college plans, she said. Some 137 students senior project engineer. participated in this year’s program. Pencil hopes to triple that number by 2017. Rooney & Associates: Ms. Cannon joins Pencil from the city’s Department of Education, where she was chief strategic officer for the Division of Jeanene Timberlake, 34, joined the public- Talent, Labor and Innovation. “Her strong ability to lead and grow an organization is something I saw firsthand,” said Pencil

relations firm as a President David Weiner, who previously worked with Ms. Cannon at the DOE. —NAZISH DHOLAKIA amelia vogler senior associate. She was previously the editor of Wall Street Letter and HFMTechnology. Risa Heller Communications: James Yolles, 33, joined the communications and public-affairs consultancy as an associate. He was previously director of communications at New Yorkers for Parks. Cardiff Group: Phillip Gornail,44, rejoined the management placement- services firm as an equity partner. He was previously producer of Forbes Living-FR Media, which he co-created. Peebles Corp.: Lowell D. Plotkin,35, joined the real estate investment and development firm as general counsel. He was previously counsel at Lowenstein Sander. Goodwin Procter: Robert V.Cerwinski,45, joined the law firm as a partner in its intellectual-property litigation practice. He was previously a partner at Kenyon & Kenyon. Cynthia Lambert Hardman, 40, joined as a partner in the intellectual-property litigation practice. She was previously a partner at Kenyon & Kenyon. Elizabeth J. Holland, 49, joined as a partner in the intellectual-property litigation practice. She was previously a partner at Kenyon & Kenyon. Huiya Wu, 40, joined as a partner in the intellectual-property litigation practice. She was previously a partner at Kenyon & Kenyon. Goldberg Segalla: Stewart G. Milch,46, joined the law firm as a partner and member of the professional liability and appellate practice groups. He was previously a partner at Martin Clearwater & Bell. McCarter & English: Bernard L. Sacks, 71, joined the law firm as special counsel. He was previously senior corporate counsel at the Louis Berger Group. Dentons: Deepak Reddy, 41, joined the law firm as a partner in its aviation finance group. He was previously counsel at Jones Day. Citrin Cooperman: Sylvie Gadant, 40, joined the accounting and consulting firm as a partner. She was previously principal in charge of the transaction advisory services at Rothstein Kass. Heller Organization: Joshua Abrams, 24, has joined the full-service real estate firm as a sales associate. He was previously an associate in the commercial division of aptsandlofts.com. —nazish dholakia

EXECUTIVE PROMOTIONS The fastest way to get an announcement into Crain’s is to submit online. Fill out the form at www.crainsnewyork.com/section/ executive_moves. The Executive Moves column is also available online.

October 6, 2014 | Crain’s New York Business | 9 20141006-NEWS--0010-NAT-CCI-CN_-- 10/2/2014 7:12 PM Page 1 OPINION CRAIN’S NEW YORK BUSINESS

The 20% solution editor in chief Rance Crain publisher, vp Jill R. Kaplan dvocates for affordable housing often line to a paradigm of urban revitalization. Reality check: If EDITORIAL editor Glenn Coleman focus on percentages, relentlessly pushing the de Blasio administration had a magic formula for managing editor Jeremy Smerd Brooklynization, cities by the dozens would line up to get it. deputy managing editors Valerie Block, for ever-higher portions of new buildings Erik Ipsen to go to low-income tenants. Given this They know progress when they see it. assistant managing editors Barbara Benson, Erik Engquist myopia, they are sure to be disappointed, For City Hall to meet its 10-year goal of 80,000 new units senior news producer Amanda Fung if not outraged, by the mandatory for low-income households, it must leverage a limited supply contributing editor Elaine Pofeldt columnists Greg David, Steve Hindy, Alair Townsend inclusionary housing program expected of housing subsidies to generate as many affordable senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, Matthew Flamm, to be rolled out soon by the de Blasio administration. apartments as it can. Rather than plow precious subsidies Daniel Geiger, Adrianne Pasquarelli City officials have told Crain’s reporter Joe Anuta that the into projects that don’t need them, it aims to use them for reporters Joe Anuta, Chris Bragg, A Andrew J. Hawkins, Irina Ivanova, revised program will result in roughly the same affordability affordable projects that Jonathan LaMantia, Thornton McEnery ratio as the one they inherited from the Bloomberg can’t be built without reporter/videographer Ken M. Christensen New Yorkers news producer Emily Laermer administration: 20%. But some activists and elected officials them. web reporter/producer Nazish Dholakia art director Steven Krupinski demand nothing short of 50%. What they miss is that New cannot live in a Fears that this will deputy art director Carolyn McClain Yorkers cannot live in a percentage.They need apartments. result in exclusive staff photographer Buck Ennis percentage. copy desk chief Steve Noveck A policy that requires an inflated percentage but yields no communities are copy editor Thaddeus Rutkowski unjustified. Remember, data editor Suzanne Panara dwellings would not help them. They need researcher Nicholas Wells Alicia Glen, the deputy mayor for housing and economic affordable housing conferences and events editor apartments would be mandatory in Jessica Kramer development, was spot-on when she said, “If we get it wrong, ADVERTISING there will be no buildings built—market or affordable.” projects benefiting advertising director Joanna Harp Unfortunately, some activists believe developers make so from zoning changes. sales manager Irene Bar-Am senior account managers much money that they will meet any mandate.These self- Such projects would Jill Bottomley Kunkes, Courtney McCombs senior account executive Rob Pierce styled “progressives” can be decidedly progress-averse. One have to set aside 15% to 25% of units—as many as are account executive Lauren Black group demanding 50% affordability at an Astoria feasible without subsidies—for low-income households. sales coordinator LeAnn Richardson credit Todd J. Masura (313-446-6097) development proudly declares its mission is to stop “the City Hall would retain flexibility to ensure that these CUSTOM CONTENT, EVENTS AND PRODUCTION Brooklynization of Queens,” which it defines as “the loss of developments actually happen, and would use subsidies director of custom content Trish Henry director of audience & content mixed-income, economically diverse communities.” It is instead where upzoning is impractical or holds no value for partnership development Michael O’Connor referring to neighborhoods like Dumbo, Williamsburg and builders.The result would be more units—affordable and director of conferences & events Courtney Williams Bushwick that have transformed the borough from a punch market-rate—throughout the city. events coordinator Adrienne Yee events coordinator & scheduler Alexis Sinclair reprint account executive Alicia Samuel production and pre-press director CRAIN’S ONLINE POLL COMMENTS Simone Pryce ONLINE AND INTERACTIVE SERVICES general manager Rosemary Maggiore TO SUBSCRIBE: Pied-à-terrible For print and digital subscriptions or customer service, e-mail [email protected] or call 877-824-9379 (in the U.S. and Canada) or A TAX BILL’S TRUE IMPACT tion when it really affects a Pension funds invested in New 313-446-0450 (all other locations). $3.00 a copy for much larger segment of the real York City apartment buildings the print edition; or $99.95 one year, $179.95 two The pied-à-terre tax proposed estate industry. would incur an additional tax. years, for print subscriptions with digital access. bloomberg news by state Sen. Brad Hoylman is The senator’s justification for If Mr. Hoylman wants to www.crainsnewyork.com/subscribe ARE YOU ROOTING FOR EX- a major concern among devel- the law attacks owners of city pass this bill on its merits, I TO ADVERTISE: AIG CEO MAURICE ‘HANK’ opers building condos in the real estate who reside elsewhere. challenge him to be honest Contact Joanna Harp at [email protected] or call 212-210-0278. affected price range—in other Moreover, the city’s largest about the tax and who is af- www.crainsnewyork.com/advertise GREENBERG OR THE FEDS words, every new development private-sector providers of low- fected by it. Promote an honest IN HIS SUIT OVER THE U.S. in the city. But it’s not just de- income housing are owners of debate. Calling this a pied-à- FOR INFORMATION ON OUR EVENTS: velopers he’s after. rent-regulated properties—the terre tax is disingenuous. Contact Courtney Williams at BAILOUT OF HIS COMPANY? [email protected] or 212-210-0257. While the bill as posted is very same Class 2 owners affect- —arik lifshitz www.crainsnewyork.com/events HANK. His lawsuit is forcing the financial inconsistent, a possible reading ed by this bill.This bill is a tax DSA Property Group TO CONTACT THE NEWSROOM: indicates the tax includes any on affordable housing. system’s private and public players to account 685 Third Ave., New York, NY 10017-4024 for their actions. Class 1 or Class 2 property val- To put this in terms that a TISH JAMES’ JOB editorial phone: 212-210-0277 ued at more than $5 million politician can understand: The fax 212-210-0799 UNCLE SAM. The lawsuit reflects Mr. that is not a primary residence. mom-and-pop business owners When I was a director at the Entire contents ©copyright 2014 Crain Communications Inc. Greenberg’s hubris, which is symptomatic of All rights reserved. ®CityBusiness is a registered trademark It is the inclusion of Class 2 who bought the mixed-use Human Resources Administra- of MCP Inc., used under license agreement. what caused the crisis in the first place. properties that concerns me. building (ground-floor retail tion, if any managers abused the CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS Date of poll: Sept. 30 Class 2 properties include mul- with apartments upstairs) in time-and-leave rules as Public chairman Keith E. Crain 134 votes tifamily properties. Every which their retail business is lo- Advocate Letitia James has, president Rance Crain owner of a multifamily invest- cated would now be subject to they would be disciplined treasurer Mary Kay Crain ment property who doesn’t live an additional tax. Owners of (online poll, CrainsNewYork Cindi Crain in the building, including those rent-stabilized properties who .com). An elected official executive vp, operations William Morrow who reside in New York City, don’t live in their building should be held to the same executive vp, director of strategic 37% operations Chris Crain Hank are affected by this tax as well. would face a tax on top of the standard. Our tax dollars are executive vp, director of corporate That is not the common def- minimal rent-increase al- being used to pay for this use- operations K.C. Crain 63% inition of a pied-à-terre. Call- lowances that are passed each less, powerless position that is senior vp, group publisher David Klein Uncle Sam ing this a pied-à-terre tax is a year, as well as additional pres- used by its occupants only as a vp/production, manufacturing David Kamis chief financial officer Thomas Stevens misnomer and a poor attempt sure to turn over regulated units platform to seek higher office. chief information officer Anthony DiPonio to spin the law as a tax against a to market rate and push up It’s time to eliminate this office. founder G.D. Crain Jr. (1885-1973) small segment of the popula- market rents to pay for this tax. —marty 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.

10 | Crain’s New York Business | October 6, 2014 20141006-NEWS--0011-NAT-CCI-CN_-- 10/2/2014 7:13 PM Page 1

another strategy: reducing labor MICHAEL SALTSMAN costs. Labor activists point out that restaurants still exist in states with- Leave New York’s out a tip credit. But that’s beside the point: Empirical data and real- world anecdotes show that higher tipped wage alone costs carry consequences for em- ployees. A peer-reviewed study pub- his fall, a three-person board appointed by Gov. lished in the Southern Economic Andrew Cuomo will tour New York to gather Journal, for instance, found a clear feedback on whether to raise the minimum wage relationship between increases in the tipped minimum wage and a re- for tipped employees.Labor groups have called for duction in full-service restaurant as much as an 80% increase in this base wage. But employment. the system of tipping that some activists want to destroy isn’t a On the ground in Seattle, many T of the city’s restaurants, faced with burden to be tolerated—it’s a perk of the job. one of the highest mandated wages I spent years working as a waiter for this very reason, as have in the country, stopped hiring bus- boys and staffed fewer servers per millions of others. Here’s how it were eliminated, restaurateur Tom shift to save on costs. works: Tipped employees are cov- Colicchio estimated that full- A similar phenomenon in New ered by the same $8-an-hour mini- service restaurant prices would rise York City would have a devastating mum wage as all other employees in by 25% to 30%. For many families, impact on less-educated young New York.Their employers can pay that could mean the difference be- adults who already face a 38% un- a lower base wage as long as em- tween dining out and staying in. employment rate. ployees still earn the full minimum And fewer customers means fewer In a recent survey of 5,000 when tip income is included. If em- jobs. people who reported working in a ployees fall short, employers are The economics aren’t complicat- restaurant and earning tips, nearly legally required to make up the dif- ed. Full-service restaurants, where a 70% rejected even a $15 wage if it ference. majority of tipped employees work, upset the tipping status quo. It’s an Census Bureau data suggest this are low-margin operations. A typi- important warning for the wage isn’t a problem in practice: Tipped cal business in this industry keeps board, which should handle a employees report making more than just 3 cents in profit from each sales proposed tipped-wage hike as it $13 an hour on average, with top dollar after paying wages, food costs would a poorly cooked meal: Send it earners bringing in $24 an hour or and other expenses. back. more. Raising prices to offset those This system works for the em- costs can discourage customers and Mr. Saltsman is research director at the ployer, the employee and the con- reduce sales. That’s why employers Employment Policies Institute, which sumer. Asked on MSNBC what in states with a small or nonexistent receives support from businesses, foundations would happen if the tipped wage tip credit have been forced to pursue and individuals.

First, voters have to elect a new NY’s future hangs state Senate. A recent Capital New York story estimates that the Repub- licans can expect to win 25 seats (out on Klein, not Cuomo of 63), and that seven races are con- sidered competitive. If the Democrats win all seven ayor Bill de Blasio last week said the state’s races,they would command a major- ity.Unfortunately for the party,it has minimum wage must be increased to $10.10 suffered setbacks in Buffalo and on in January, to be followed in short order by a Long Island, and two Democrats— $13-plus minimum in New York City.Mean- Ruben Diaz Sr. of the Bronx and Simcha Felder of Brooklyn—are while, my colleague Alair Townsend warned unreliable and could side with the Min her Sept. 29 Crain’s column about the stridently anti- Republicans. landlord agenda heading New York City’s way.Both are assum- The reality is there’s no way for ing a Democratic takeover of the state Senate, which depends the mainstream Democrats to run the Senate without Mr. Klein, on one man: Jeff Klein. whose four caucus colleagues seem Albany is currently divided into assured of re-election and who is ex- several not-at-all-friendly tribes. pected to gain a new follower from The first is the overwhelmingly Brooklyn when Democrat Jesse Democratic and extremely pro- Hamilton joins the tribe. gressive Assembly.The second we’ll Many people I talk to say they call the mainstream Senate Demo- don’t believe Mr.Klein when he says crats, who are also pretty progres- he will align his group with the sive.The third should be labeled the mainstream Democrats. They ex- Klein Renegades, who have broken pect him to make another deal with with the other Democrats and are the Republicans, egged on by the fairly moderate. The fourth is the governor.Then the mayor won’t get Republicans, as conservative as it his minimum-wage hike and Alair gets in New York politics (with GREG DAVID can breathe easier about rent many caveats). The last is a tribe of regulation. one, Gov. Andrew Cuomo, a pro- But I am betting that Messrs. business centrist, at least during his governor and Mr. Klein say they Klein and Cuomo stick by their first term. plan to join forces with the main- pledge. If they don’t, they will spark For the past two years,the gover- stream Democrats, which they will a bloodbath among the Democrats. nor has run the show because the do to avoid an all-out war with the I find it hard to believe they would Klein Renegades and the Republi- rest of the party, and have signed on think that’s a good idea. If I am cans have aligned to support Mr. to progressive measures like the sep- right, Mr. de Blasio will get his way Cuomo and his agenda. Now the arate state and city minimum wage. and Alair’s fears will come true.

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IN THE BOROUGHS BRONX Ferry Point teed up for growth Continued from Page 4 golf course, coupled with the area’s database. But with the transforma- neighborhood of Throgs Neck what downzoning to a two-story maxi- tion now complete, many real estate the opening of Brooklyn Bridge mum for two-story residential agents expect home values to in- Park and the High Line have done properties, sparked a decade-long crease rapidly. in recent years for their sections of housing boom on undeveloped lots “I think property values could Brooklyn and Manhattan, respec- adjacent to the landfill site. In that rise as much as 10% over the next tively. period, dirt streets were paved, sew- year,” said Anne Gershkowitz, a ers were laid, sales associate with Coldwell Housing boom and nearly 400 Banker. As an example, she pointed The $180 million city-owned two- and three- 2015 to a three-family house across from OFFICIAL course, located in the eastern half of family homes OPENING DATE the course that she sold three Ferry Point Park, will be managed were built, while months ago for $469,000. “That by Donald Trump and has already work on the golf house will be worth well over a half- been earmarked as a site for future course contin- $180M million dollars when the course PGA tournaments, possibly as soon ued fitfully at COST (including opens,” she noted. as 2017. In addition, a 30-acre wa- best. two parks) Moreover, homeowners who live terfront esplanade is under develop- “People paid in the houses on the tree-lined ment, and a seven-acre community top dollar for blocks that have sprung up around WELL ABOVE PAR: 222 The new golf course park along the eastern edge of the these houses but SIZE in acres the golf course now seem to be tak- puts the surrounding course opened to the public last year. then wound up ing a newfound pride in their prop- area on the map. “We’ve waited so long for this, spending years living next to an un- erties, putting in shrubs and other we’re pinching ourselves,” said City sightly landfill,” said Mr. Vacca. improvements. Councilman James Vacca, a sup- The mere prospect of trading a “This will be a real game chang- porter of the project since it was pro- view of dirt piles and garbage for one er for the community,”said Kenneth

posed in the late 1990s, when he of lush green links has held proper- Kearns, district manager of Com- carol hall served as a member of the local com- ty values steady in the past five years, munity Board 10, which includes munity board. according to statistics provided by the Throgs Neck neighborhood. local businesses as well.” there, whether it is something on- Back then, the prospect of the Zillow.com, an online real estate “Not only for homeowners, but for In fact, several restaurants along site or through a directory of local East Tremont Avenue, the neigh- eateries we provide to golfers,” said borhood’s main thoroughfare, have Mr. Alicea. already forged a partnership with Joe Kelleher, chairman of the the Trump organization to help Bronx Chamber of Commerce,not- them cash in when the golfers begin ed that the much-touted golf course arriving. is one in a series of developments “The buzz around here is that is boosting the economy of the JOIN CRAINS tremendous,” said Albie Torressen, East Bronx. owner of Brewski’s Bar and Grill. Less than a mile north, a 125- The lifelong Throgs Neck resident room Marriott Hotel opened in REAL ESTATE DAILY EMAIL LIST! and former Little League coach September on Eastchester Road in plans to organize and sponsor golf the Hutchinson Metro Center. outings at the new course as soon as What’s more,the city is studying the it opens. feasibility of launching ferry service from the East Bronx to Manhattan, Get NYC’s best Dining locally making the difficult-to-access area Trump representatives have al- just a 10-minute boat ride away commercial real estate news, ready done some outreach of their from midtown, and allowing the own. They recently accepted an in- area to once again live up to the deals and executive moves vitation to dine at the Havana Café, name it was given nearly a century an upscale Cuban restaurant ago, when it was a destination for a delivered to your inbox. launched three years ago by business number of ferry boats. partners Kevin Alicea, Ruben Rod- “We’re on the map now,” said riguez and Troy Perez. “We’ve be- Mr. Kelleher.“We are no longer just gun a dialogue with the course’s op- the borough where the zoo is erators about having a presence located.” Ⅲ

The club is nearly halfway there, FROM with the bulk of funds coming from AROUND the coffers of local pols including Queens Borough President Melin- THE CITY da Katz and City Councilman Paul Vallone. Between them, they allo- QUEENS cated $580,000. “The funding will ... transform Gaelic football the park by helping pay for the up- lands new field grading of utilities,the resurfacing of the playing fields and the installation A Gaelic-football league has raised of new fencing,” said Ms. Katz. nearly $1 million to build a new Once built, the grounds will in- home field in Queens. For the past clude a full-size field, an additional Subscribe for four years,the Shannon Gaels Foot- scrimmage field, bleachers, parking ball Club,which includes more than facilities and new lighting. The first FREE! 600 members from 4-year-olds to phase of work is expected to begin by adults, has had only a small patch of the spring of 2016. grass in College Point’s Frank Gold- “We’ve been grateful to have en Park to play Ireland’s most popu- some land these past four years, but lar sport, a sort of combination of it’s like playing in a dust bowl right soccer and basketball. now,” said Colin Mathers, a team This year, the club struck a deal coach and chairman of the club’s with the city’s Parks Department for Field of Dreams initiative,which the www.crainsnewyork.com/newsletters an additional seven acres in the park fundraising effort has been dubbed. and has embarked on a $2 million “The children really deserve better, fundraising effort to revamp its new and now they will get it.” grounds. —kerry murtha

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HEALTH CARE INSIDE The List New York area’s largest benefits consulting firms PAGE 15 ‘Transparency has helped us, but it’s embarrassing to the hospitals’ REPORT —Dr. Jamie Cesaretti, radiation oncologist, Page 16 Hospitals

MONTEFIORE CHIEF DR. STEVEN SAFYER said the health system’s new line of medical insurance is eye profits “a business decision based on the opportunities.” in insurance NY providers hope RISKY offering their own BUSINESS Montefiore shares in the financial health plans will risk of caring for 300,000 people, generate big bucks including ... 25,000

BY BARBARA BENSON

Two decades ago,Montefiore Med- ical Center started investing mil- lions of dollars in technology and 16,000 staff to help it deliver better clinical outcomes at lower costs. Now that long-ago investment is helping the Bronx health system 9,000 add a new line of business: medical insurance. In 2015, the Montefiore Insurance Co. will offer a health coverage plan to small businesses, as well as insurance services in other niches, including long-term care. United- Medicare 1199SEIU “It’s a business decision based on Healthcare members members the opportunities,” said Dr. Steven members Safyer, Montefiore’s president and chief executive. tests and procedures they perform. Montefiore isn’t alone in that as- Taking on the risk of a patient’s sessment. The North Shore-LIJ health, as insurance companies do, Health System launched an insur- offers a new, potentially lucrative ance company, CareConnect, last revenue stream because federal and year. Crystal Run Healthcare, a state health reforms have put a pre- multispecialty practice with some mium on paying medical providers 300 health care providers in the not for the quantity of care they pro- Hudson Valley and lower Catskill vide, but the quality. It’s new terri- region, is another provider getting tory for New York hospitals. Most into the insurance business. have not yet adapted their clinical

buck ennis Most hospitals get paid for the See HOSPITALS on Page 14 High deductibles have patients clamoring for cost clarity

MORE EMPLOYEES PAY FOR THEMSELVES Ms. Blum is the embodiment of tients to first spend their own mon- Transparent pricing the new,informed patient.As work- ey before their insurance picks up for health services PORTION OF EMPLOYERS that will offer only a high-deductible ers shoulder a bigger portion of the tab. These plans now make up health plan next year, or do so now ever-rising health costs, providers 36% of all commercial insurance,up may allow workers 21% and insurers are finally opening up from less than 7% five years ago. to shop around PORTION OF EMPLOYERS that plan use a defined-contribution about prices.Employers hope that if “The train has left the station,” 16% arrangement for employee benefits, or do so now health care operates more like a re- said Robin Gelburd, president of Source: Towers Watson survey tail business—with transparent FAIR Health, a nonprofit that BY IRINA IVANOVA pricing—patients will then be able tracks health care costs. “People fi- ferred her to a specialist for a “I was very honest with the office to shop for the best-quality care at nally are embracing transparency.” Cheryl Blum,a mother of four,is no colonoscopy,Ms. Blum used her in- manager and said, ‘It’s nothing per- the lowest cost. Finally, yes, but not in huge stranger to discussing the cost of her surance plan’s online cost estimator sonal, but the other facility has fees Behind the push for more price numbers. Even though more con- medical choices with her doctor.Af- to find a doctor who could do the that are $300 to $400 below yours,’” disclosure is the growth of high- sumers are being forced to consider ter her primary care physician re- procedure for less. she said. deductible plans, which force pa- See TRANSPARENT on Page 16

October 6, 2014 | Crain’s New York Business | 13 20141006-NEWS--0014-NAT-CCI-CN_-- 10/2/2014 6:05 PM Page 1

REPORT HEALTH CARE

New York City hospitals that will be added to the network on Jan. 1 are Hospitals’ health insurance Montefiore, Maimonides Medical Center and Wyckoff Heights Med- ical Center.In Westchester,the net- Continued from Page 13 the market goes.” North Shore-LIJ’s insurance work will include two facilities in model of care to be financially ac- Already,Montefiore can take ad- company began marketing plans on negotiations to join North Shore- countable for a patient’s health. vantage of several increasingly com- Oct. 1, 2013. Its premise is that a LIJ: Phelps Memorial Hospital and Montefiore and North Shore- mon payment approaches: It cares large health care system with spe- Northern Westchester Hospital. LIJ are the exceptions. Montefiore for more than 300,000 people— cialty doctors and top-tier hospitals “We’re partnering with only a already has an infrastructure in place with a goal of reaching 1 million— can make treatment decisions that few,” said Mr. Murray. “To execute to manage the financial risk and under shared-risk or full-risk are peer-reviewed, with few denials, the vision, you have to be small.” other aspects of delivering health models, including shared-savings because doctors are running the To attract more New York em- care. Montefiore’s footprint in the initiatives where a payer and the show. ployers with workers in New Jersey north shore lij shore north Bronx and northward gives it the health system both benefit from the and Connecticut, the insurer is CARECONNECT CEO Alan Murray is building size it needs to compete for employ- financial savings for a specific pop- adding the Barnabas Health system North Shore-LIJ’s insurance network. ers looking to offer insurance to ulation of patients. ‘The vision is and Yale-New Haven Hospital. their employees. One out of every three residents in the Bronx gets Similar moves working. We CVS deal The insurer lowered its premiums their care from Montefiore. The In September, for example, the CareConnect does not offer out- for small groups by 14.6% compared system recently added hospitals in federal agency that runs Medicare treat people of-network coverage. For enrollees with 2014 rates—a reflection of how Westchester County and may announced that Montefiore’s Pio- who travel out of the area,the insur- the new insurer is still getting a feel swoop up another in Rockland. neer accountable care organization, differently’ er announced a deal in September for the industry. The operations that support how which covers 25,000 Medicare with MinuteClinic, the retail health Mr. Murray said that “pricing Montefiore manages risk—data ex- members, generated $24.5 million division of CVS Health. CareCon- was higher than the market,” result- perts, care managers, social workers in yearlong shared savings for nect members have access for most ing in small-group enrollment that and other staff—cost about $100 Medicare—of which Montefiore services at more than 900 Minute- was slightly less than CareConnect’s million to run annually but help the kept about $13 million. “The vision is working,” said Clinic locations in 29 states and the projections. Large-group and indi- system generate $2 billion in rev- The system has also embraced Alan Murray, president and chief District of Columbia. vidual enrollment, however, beat its enue from shared-risk or full-risk what’s called capitation, in which executive of North Shore-LIJ’s “By adding a national provider of estimates. initiatives. That infrastructure will Montefiore gets paid a set price per CareConnect, based in East Hills, walk-in medical care to our net- Total enrollment in its first year serve the insurance company well. patient and then manages his or her L.I. “We treat people differently.” work, we’re ensuring that business was about 10,000 members, and “Other providers are creating health to keep costs down. The insurer is expanding its of- travelers, vacationers and college that is a number that pleases Mr. health plans that cost a lot of mon- Other health providers are mak- ferings for 2015. In addition to the students have easy access,” said Mr. Murray. ey,” said Dr. Safyer, referring to the ing similar moves. Crystal Run providers and facilities within the Murray. “We pressure-tested the model to startup costs of becoming an insur- Health Insurance Co. and Crystal Long Island-based system, it will For individuals who buy their see if it was workable, and it was,” he er.“I can move almost on a dime,and Run Health Plan will start selling include hospitals it considers like- own health coverage, CareCon- said.“Now we have a platform to scale I want to be poised to move where insurance services in 2015. minded in their clinical operations. nect’s rates will drop 2% in 2015. and continue to be successful.” Ⅲ

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14 | Crain’s New York Business | October 6, 2014 20141006-NEWS--0015,0016-NAT-CCI-CN_-- 10/2/2014 6:04 PM Page 1

THE Largest Benefits Consulting Firms LIST Ranked by number of New York-area professionals THE SCOOP TRENDS Power players 2014 number of professionals firmwide Biggest gainers bamacare has been a boon to benefits consulting firms in New Mercer York City. Thirteen firms on Crain’s list reported hiring local Largest increases in area professionals, 2013-2014 20,285 benefits professionals in the past year, an overall increase of Arthur J. Gallagher & Co. Arthur J. Gallagher & Co. 6.3%. Employers are handling the implementation of the Af- 71.8% fordable Care Act by reducing costs, increasing transparency 19,239 HUB International Northeast Oand offering customized benefits packages based on employees’ needs. 45.7% Willis Group “Our employee benefits side of the house is growing by leaps and bounds,” 18,000 Lockton Northeast Aon Hewitt said Ami Shah,employee benefits practice leader at (No.12 on 45.3% Crain’s list).“Much of that revolves around the question of the ACA and the dif- Deloitte Lockton Northeast ferent types of [cost-containment] levers clients are starting to take a look at.” 16,000 19.2% Among the strategies employers are using to comply with the law—whose major provisions took effect in January—are what Ms. Shah calls “your basic Alliant Insurance Services Towers Watson & Co. blocking and tackling”: higher deductibles and co-payments, as well as in- 16.7% 14,000 creased wellness programs and tools to make medical costs transparent. Source: Crain’s research Source: Crain’s research “Think of [transparency]like the old Kelley Blue Book,”Ms.Shah said.Lock- ton reported a 17% increase in head count at its New York office,and Ms.Shah said the private company broke $1 billion in revenue for the first time last year. Who’s covered? In 2012, HUB International Northeast (No. 13) expanded its consulting and Portion of population with employer-based health insurance, 2013 brokerage business with a private insurance exchange, where businesses can offer employees a greater range of health insurance plans. 80% 100% 70 62.4% “I think everyone is looking for a more efficient, more effective way of de- 57.3% SHARE OF FIRMS 60 livering employee benefits,” said Joseph Torella, president of employee ben- 47.2% on Crain’s list that offer 50 44.3% efits at HUB International Northeast. The advantage of a private exchange 35.3% is that employers can offer many different plans, rather than choose one or HR, retirement and 40 welfare consulting. Only 30 two HMOs for their employees to pick from. 20 “It’s really an old-fashioned flex-benefits approach that’s put in a high-tech 65% offer outsourcing consulting. 10 platform,” Mr. Torella said. “It makes it easy to allow employees to make deci- 0 sions that years ago would have been very difficult.” HUB’s marketplace has at- Bronx Brooklyn Manhattan Queens Staten Island tracted 70 clients nationwide,30 of which are in New York.—nicholas wells Source: U.S. Census Bureau

Services

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October 6, 2014 | Crain’s New York Business | 15 20141006-NEWS--0015,0016-NAT-CCI-CN_-- 10/2/2014 6:05 PM Page 2

THE LIST Largest Benefits Consulting Firms

Services

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FOR ANY CRAIN’S LIST, GO TO WWW.CRAINSNEWYORK.COM/LISTS

shouldn’t be the only consideration. HERNIA COST lumpectomy—a common proce- Transparent pricing When one of Ms. Blum’s children dure to fight breast cancer—costs needed an MRI, she had to choose COULD GIVE YOU somewhere between $12,000 and between two facilities, one of which A HEART ATTACK $20,000 at Dr. Cesaretti’s practice, Continued from Page 13 of individual procedures,but not the was $175 more expensive. She con- depending on the insurer. At a hos- cost when making decisions, doing price of all the care needed to treat a sulted her child’s orthopedist. Most patients have no idea that pital, that procedure usually costs so is not easy.That’s because neither particular condition because the “He came back and said, ‘I’d the prices NYC providers charge $20,000 to $30,000, he estimated. medical providers nor insurers like data are fragmented. really prefer place B,even though it’s to fix a hernia vary widely Some insurers and employer health to reveal the cost of care. Insurers, A knee replacement requires more expensive, because they have a plans give patients incentives to go which negotiate their prices direct- physical therapy and an implant, for better diagnosis rate,’ ” she said. the cheaper route. ly with providers, are loath to make example, “not just the surgical fee,” Her experience highlights why public any information that could FAIR Health’s Ms. Gelburd said. advocates and medical facilities say $4,098 Rebranding opportunity give away a competitive advantage. Her firm’s website recently added quality-of-care data must be includ- Lincoln Medical and Mental Health The power of pricing is most ob- Doctors, meanwhile, say disclosing cost information for common med- ed alongside price. Quality means Center (median charge, 2011) vious for patients paying cash. Dr. pricing without data on the quality ical devices and services such as am- different things to different people, Robert Haar,an orthopedic surgeon of care could lead patients toward bulance transportation. and patients often lack the knowl- with a practice on the Upper East making bad decisions. Insurers have resisted making edge to evaluate their doctor. Re- Side, a neighborhood crowded with “What is quality? They may give data on payments publicly available views on websites such as Yelp, $37,116 hospitals,lists his prices prominent- you a soft pillow and make you com- because they negotiate discounts Healthgrades and ZocDoc fre- Lenox Hill Hospital (median charge, ly on his website, hoping to win fortable, but the nurse may do the that may be available only to plan quently focus on nonclinical factors, 2011) business. A partial knee replace- wrong procedure,” said Steve Blu- members. It’s a competitive advan- like bedside manner and wait times. ment costs $13,500 at his practice, menfeld, a health and group bene- tage they don’t want to give up. Dr. Jamie Cesaretti, a radiation and that covers everything from the fits consultant with Towers Watson. “Say a plan has negotiated a 20% oncologist at several locations in consultation to the postsurgical vis- “It’s a real issue, because the con- discount with a provider for a par- New York City,remembers the “dis- $13,321 it. In New York state, the average sumer can’t measure quality—con- ticular procedure,” said Mitch belief and incredulity” among his Lenox Hill Hospital (Aetna member hospital charge for a partial knee re- sumers measure quality based on Rothschild, CEO of Vitals, a trans- colleagues when they realized that rate, in-network) placement is $33,980, according to what they know.” parency software company. “Nei- patients were ranking them on state Department of Health data. Quality tools themselves are rel- ther one wants to make that infor- Healthgrades like a retail store or $4,400-$7,500 For health insurers, which are atively new and limited. Several mation public, because then every restaurant. FAIR Health’s range of rates charged sometimes maligned by their own dozen cost-pricing resources have other plan will go to that provider “How could all my years of edu- by Manhattan doctors performing members, the move toward trans- garnered wide use, in addition to and ask for the same discount. cation and expertise boil down to outpatient hernia surgery parency represents a unique re- ones insurance companies have de- that they were angry that I was 20 Source: New York State Department of Health, branding opportunity. veloped, according to Mr. Blumen- Ranking doctors minutes late?” he recalled. Aetna, FAIR Health “All of a sudden, the patient feld. Among the most popular are Starting early next year,Mr.Roth- Dr. Cesaretti responded by might get to see the cost of some- Vitals, HealthSparq and Castlight schild said, SoHo-based Vitals.com, building an SEO-optimized web- Dr. Cesaretti said.“Transparency has thing, or might get a check sent to Health,whose initial public offering where patients can search for and rate site and increasing his presence on only helped us, but it’s shockingly them for going to a cheaper place,” this year reflects the expectation doctors, will post information on sites that allow doctors to challenge embarrassing to the hospitals.” said Vitals’ Mr. Rothschild. “The that the transparency niche will what a dozen insurance plans pay for reviews they see as inaccurate. Sticker shock over hospital plans have all this data.Are they go- grow. common procedures.Patients choos- He also is upfront about costs with prices is the norm.With their high- ing to be able to flip it around and The tools themselves reflect the ing among plans will be able to patients who pay cash, and some- er overhead,hospitals usually charge become entities who are liked, if not difficulty in making prices transpar- comparison-shop. times adjusts prices to stay competi- more for procedures than do outpa- loved, because they made this infor- ent. Patients can often see the cost Doctors warn that price tive. “I have control over my costs,” tient facilities. For example, a mation public?” Ⅲ

16 | Crain’s New York Business | October 6, 2014 BECAUSE A TRANSFORMING

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Parents’ Finances By Christopher Hosford

No man (or woman) is an island, and individuals A desire for control Power of attorney is essential generally have more people to worry about financially than just themselves. These include spouses, children “Money seems to be the last thing they want to lose The most essential document allowing an adult child and, often, elderly parents. control of,” Ms. Zelterman says. “But when the kids do to act on his or her parents’ behalf is power of attorney, take over, [parents become] relieved. I’ve never seen which should be arranged for when the parents are still them not relieved. It’s important to just do it.” able to understand the situation. Gaining this authority As for identifying the proper time to transition will allow the designated power of attorney to deal with With parents, the most responsibility, Ms. Zelterman says adult children should banks, wealth management advisors and creditors. If left watch for mail piling up, or parents’ failure to pay too late, and the parent or parents are truly incapacitated, important concern physician co-pays. the only recourse may be going to court to seek “Go with where the pain is,” she suggests. “If they guardianship, which can be lengthy and expensive. is their future, and say they’re overwhelmed by their bills, that’s when you Adult children also should be on the alert for scams can say, ‘let me take care of it.’ You don’t have to [be aimed at their parents. This might be revealed in the sometimes that means aggressive].” parents’ checkbook or insurance claim forms. The FBI The AARP suggests a multi-step approach to maintains a list of typical scams that the elderly fall taking the financial this delicate situation, beginning with an offer to for (www.fbi.gov/scams-safety/fraud/seniors), which relieve concern. Start the conversation with a positive includes equipment manufacturers offering “free” reins. question like, “How can I help make sure your finances products and then charging for them, and unnecessary are handled with your wishes in mind?” Assure the and sometimes fake tests provided at retirement homes parent(s) that you’re looking out for their best interests. or shopping malls. But when is an appropriate time? “Immediately” may You’ll want to ask for permission to review bank Perhaps most distressing of all is when one adult child be the answer if a parent suffers a physical crisis and accounts and investment information, insurance recognizes patterns of elder financial abuse at the hands becomes incapacitated. If arrangements haven’t been policies, mortgages and deeds, other loans, pensions of another adult child or caregiver. The actions run the planned for in advance, however, taking the reins may be and Social Security statements. And don’t forget the gamut from out-and-out theft and forgery to having difficult and expensive. For the best results, arrange these contents of safe deposit boxes. the elderly person sign a deed, will or power of attorney details as early as possible. AARP also suggests talking to parents about putting through deception, coercion or undue influence. Irene Zelterman is executive director of Hearthside their legal affairs in order and placing their wishes in Elder financial abuse can be difficult to detect. The Care Coordinators, a Brooklyn-based firm that specializes writing. This includes creating or updating a will or National Committee for the Prevention of Elder Abuse in helping people cope with the challenges of caring for other estate plans, designating a financial representative notes such signals as unpaid bills and withdrawals or older and physically-challenged adults. Ms. Zelterman through a power of attorney, and composing legal transfers between and from bank accounts that the older says of all the little and great concerns that the elderly documents to guide future health care decisions. person cannot explain. Sometimes the withdrawals can face, financial insecurity is perhaps the biggest. be accounted for, perhaps indicating that the parent was scammed. Staying in close contact with the parents’ financial advisor or tax preparer also can illuminate early signs of abuse.

Watching for warning signs Red flags may also appear when the other sibling or caregiver has substance abuse, gambling or financial problems, or is verbal in expressing fear that the parent will get sick and use up what they thought would be an inheritance. “Nearly every time I lecture on financial abuse, people will approach me with their personal stories,” Elizabeth Loewy, a Manhattan assistant district attorney, told Consumer Reports. Loewy was a lead prosecutor in the 2009 conviction of Anthony D. Marshall for defrauding and stealing from his elderly mother, philanthropist Brooke Astor. “They will talk to me about their grandmother, aunt or neighbor, usually a senior with cognitive issues, who had ‘this problem,’” Loewy says. “And it’s like a light will go on, and they’ll ask, ‘So this could be a crime?’” y

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Member FDIC | ©2014 Astoria Bank Special Advertising Section What’s a Wealth Manager, and Why Do You Need One? By Christopher Hosford

Why do you need a wealth manager? goal he can spend no more than $120,000,” Mr. Maltin Fiduciary responsibility. A consideration when notes. “That’s a dramatic conversation to have.” hiring a wealth manager is how he or she is compensated. To boost the value of your investments, you say? Yes, Rebalancing investments. Individual investors Some wealth managers are compensated based on a wealth managers help clients to identify potentially who manage their own portfolios can be prone to small percentage of the client’s holdings, while others profitable stocks, bonds and mutual funds. But they do “irrational exuberance,” to employ the memorable earn commissions on the investments they sell to clients. far more than just manage investments. phrase of former Federal Reserve Board Chairman Alan Some firms offer both arrangements. In seeking and adopting wealth management advice, Greenspan. This entails buying and selling without a Whichever model is employed, clients should feel it’s the big picture that counts. Wealth managers help you clear view of proper portfolio balance. assured that an investment decision is being made for his prepare for retirement. They determine the allocation or her own good. “The question to ask is, ‘is your advisor of investments based on life’s realities. They help with working for you or for his company?’” Mr. Maltin says. inheritance issues and the transfer of assets, including Vanguard notes a do-it-yourself Asset allocation. Among the biggest investment businesses, to heirs. They help preserve wealth as well as stories recently was Bill Gross leaving his longtime post as manage it. investor may pad his or her CEO of investment management firm Pacific Investment Wealth managers are more than investment guides — Management Company (PIMCO) to become a portfolio they can be true financial partners. portfolio a bit, but “The true benefit manager at Janus Funds. Given Mr. Gross’ reputation as a “A lot of wealth management is about making sure premier bond-fund manager, it fomented concern about you don’t hurt yourself,” says Peter L. Maltin, principal of rebalancing is… controlling risk. the future of PIMCO and the funds it manages. with Maltin Wealth Management, based in Paramus, NJ. In response, Mr. Maltin sent a letter to clients If the portfolio is not rebalanced, analyzing the turmoil and his decision to immediately eliminate two PIMCO investments held in client One-off advice the likely result is a portfolio that portfolios because of their volatility. But he noted other concerns, which typify the comprehensive wealth “The key is, wealth management isn’t a cookie-cutter is over-weighted to equities and managers’ view. situation,” Mr. Maltin says. “Rather, a wealth manager “There could be negative tax impacts due to the sale looks at a client as an individual, and doesn’t simply put therefore more vulnerable to of the underlying investments,” Mr. Maltin wrote of you in an investment model along with everyone else.” Gross’ quick decision to rid portfolios of the PIMCO A white paper published in March by Vanguard equity-market corrections.” funds. “This had been a concern of ours before this details the value of wealth management advice, in announcement.” y particular when it comes to what the firm calls “alpha,” or relationship-based, services. These services — such as financial planning, discipline and guidance — go beyond trying to outperform the market. The paper, titled “Putting a Value on Your Value,” cites seven “quantification modules” that constitute strengths wealth managers bring to the table. These modules include asset allocation, cost-effective implementation, rebalancing investments, behavioral coaching, asset location, considering withdrawals and total return versus income investing. “[The topic] is as subjective and unique as each individual investor,” concludes Vanguard’s four-author team headed by Francis M. Kinniry, Jr. “For some investors, the value of working with an advisor is peace of mind. Although this value does not lend itself to objective quantification, it is very real nonetheless. For others, we found that working with an advisor can add about 3% in net returns.” Let’s look at just a few of a wealth manager’s typical responsibilities: Retirement planning. “What’s your number?” is a basic question wealth managers ask of their clients. That’s the amount of money a person needs, and will be able to spend, upon retirement. This can fall under Vanguard’s “behavioral coaching” topic, as well. “I had a meeting recently with someone who spends $300,000 a year, [but] in order to meet his retirement

S4 ©2014 City National Bank City National WealthManagement y fi “ My City National.” the professionals at are complex, I trust Wealth Management advisornear you. Call (917)tofi 322-5245 City National clients. Visit cnb.com/Tr Island Capital Group Executive Managing Director Bob Lieber nancial needs nancialneeds ustCNB to hearother nd a CNB MEMBERFDIC Special Advertising Section Estate Planning Mistakes: LESSONS FROM THE STARS By Christopher Hosford

As the year draws to a close, it’s worthwhile to huddle with when she reaches 21, whether or not she’s prepared to included nonprofit theaters. wealth management and tax experts to ensure all loose ends handle it, the Mayorases said. Mr. Hoffman’s lifestyle choices may have also are tied up and all financial matters are squared away. But hampered his estate planning efforts. First, it’s not clear not everyone does — and this oversight can be catastrophic. if Mr. Hoffman had a life insurance policy — but with For recent examples, look to the deaths of actors Avoiding a fire sale a lifelong struggle with drugs, he may not have been James Gandolfini, 51, and Philip Seymour Hoffman, 46. insurable. Secondly, Mr. Hoffman was not married to News of their passing echoed throughout the world of “A lot of what Mr. Gandolfini gifted was property, which Mimi O’Donnell, the mother of his children. As a result, entertainment, but estate planners and the financially is illiquid,” Mr. Finkelstein says, citing the actor’s Italian her estate tax liability will be significant. savvy took note, as well. and New York City residences. “But upon death, the IRS “Nobody expects things to happen, so you have to Why? Mr. Gandolfini of “The Sopranos” fame and wants its cut. How does the family come up with $40 plan,” Mr. Finkelstein says. “The goal of good estate Mr. Hoffman, an Academy Award winner, left behind million they don’t have? They have to go into fire-sale planning is making sure money goes where you want financial messes that put their families at an extreme tax mode.” it to go.” y disadvantage. It has been estimated that Mr. Gandolfini According to the Mayorases’ analysis, Mr. Gandolfini could have placed his assets in trusts for a more died with an estate worth about $70 million, but with Guide To Wealth Management is some 80% left unprotected against death taxes of about sophisticated estate tax situation and to avoid probate 55%. Mr. Hoffman’s heirs, meanwhile, will see some 40% court. This still would have allowed Gandolfini to published by Crain’s Custom of his $35 million net worth go to taxes. provide for family and friends, but without the hefty Connections Studio. estate tax bill. For more information, please contact “On the plus side, Gandolfini designated his 14-year- old son as the beneficiary of a $7 million life insurance Trish Henry at (212) 210-0711 or It didn’t have to be that way. policy, which the boy will receive tax-free,” Mr. Finkelstein [email protected]. added. “So, he did the right thing in this situation.” Whatever one’s wealth, no one As for Mr. Hoffman, he too relied on a will rather than trusts. He last updated his will 10 years ago, providing for wants to see a lifetime’s worth of one son but not for two daughters who were born later. Also, the will didn’t mention Mr. Hoffman’s mother, work taken from loved ones. Death brother or any of his philanthropic causes, which and taxes may be inevitable, but the blow of the latter can be mitigated quite a bit, experts say.

Dealing with the difficult “Dying is an emotionally difficult thing to come to grips with, but it will happen 100% of the time,” says Jared J. Finkelstein, senior vice president at Lee, Nolan and Koroghlian, a New York-based estate, insurance and financial strategies firm. “So, if you know it’s going to happen, are you prepared when the government comes with its hand out?” In August, the Reelz channel debuted its “Celebrity Legacies” television series. Its first episode explored the financial ramifications of Gandolfini’s death for his two young children, a current wife and a former wife. Instead of using a revocable living trust to keep his affairs private and separate from probate court, Mr. Gandolfini relied primarily on his will, according to Danielle and Andy Mayoras, estate planning and probate litigation attorneys who appear on “Celebrity Legacies.” Probate courts are expensive, and unwanted publicity exacerbates family tensions, they said. Further, Mr. Gandolfini did not consider his children’s youth and if they would be ready to inherit millions of dollars. His daughter is currently two-years-old — she will inherit 20% of the balance of Mr. Gandolfini’s assets

S6 Stepping away is easier with someone showing you the steps.

When it comes to succession planning, there’s no such thing as too soon. Northern Trust has the insights you need to make a smooth transition, while avoiding pitfalls. Getting in front of a plan to transition your business can help ease management changes, minimize tax liabilities and give you more liquidity for investing in your future. Take the first step and call John Hoffman at 212-339-1997 or visit northerntrust.com/business.

YOUR LIFE. YOUR GOALS. OUR EXPERTISE.

WEALTH MANAGEMENT | ASSET MANAGEMENT | ASSET SERVICING P026-28CL_CN_20141006.qxp 10/3/2014 1:02 PM Page 26

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM BUSINESS SERVICES PUBLIC NOTICE PUBLIC & LEGAL NOTICES Professional Notice of Qualification of SUMMIT Notice of Qualification of PRIME Notice of Qualification of ARC Outsourced ROCK PRIVATE EQUITY PORTFOLIO II MACAYA CAPITAL MANAGEMENT NYC400E67, LLC. Authority filed with Bookkeeping NOTICE Services (FOUNDATIONS AND ENDOWMENTS), LP. Authority filed with Secy. of State Secy. of State of NY (SSNY) on L.P. Authority filed with Secy. of State of NY (SSNY) on 09/17/14. Office 08/11/14. Office location: NY County. Customized services to fit your needs: of NY (SSNY) on 08/15/14. Office location: NY County. LP formed in LLC formed in Delaware (DE) on • QuickBooks Advisors & Training Available • Financial Statements, Tax Returns, The New York City location: NY County. LP formed in Delaware (DE) on 09/10/14. Princ. 08/08/14. Princ. office of LLC: 106 Cash Management Delaware (DE) on 02/27/14. 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Purpose: 6)Metro North Train Stop Live-Work Artist/Service brokers on new Notice of Formation of KRETCHMER Any lawful activity. Secy. of State of NY (SSNY) on 7)Institutional – Schools, Dorms, Recreation HUD River SC LLC. Arts. of Org. filed with Secy. 08/20/14. Office location: NY County. [email protected] rental assistance of State of NY (SSNY) on 9/10/14. NOTICE OF FORMATION OF ZJK SSNY designated as agent of LLC www.crproperties.com 845 485-3100 programs offering an Office location: NY County. SSNY Ventures LLC. Arts of Org filed with upon whom process against it may be designated as agent of LLC upon Secy of State of NY (SSNY) 3/28/14. served. SSNY shall mail process to: array of benefits. whom process against it may be Office location: NEW YORK County. 800 Third Ave., 28th Fl., NY, NY 10022. served. SSNY shall mail process to: SSNY designated agent upon whom Purpose: any lawful activities. 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SSNY shall mail process to: Gilbride, potential vendors on approaches to the • 11 a.m. – 12:30 p.m. Office location: New York County. of Org. filed with the SSNY on Tusa, Last & Spellane LLC Attn: JMW, design, development, and implementation • RSVP to SSNY designated as agent of LLC 06/25/2014. Office loc: NY County. 31 Brookside Drive, Greenwich, CT of a food & beverage operation at the whom process against may be served. SSNY has been designated as agent 06830. Purpose: Any Lawful Purpose. Center. The RFI provides prospective [email protected] SSNY shall mail process to: C/O THE upon whom process against the LLC respondents an opportunity to submit PLLC, 1410 Broadway, Concourse Lvl, may be served. SSNY shall mail Notice of formation of F.H. Wadsworth ideas, information and recommendations by Tuesday, 10.14.14* for an F&B program. Of particular interest NY, NY 10018. Purpose: to engage process to: Chad Lewis, 401 E. 74th LLC. Arts. Of Org. filed with Secy. Of to the Center are details of what the in the practice of Chiropractic. St., Apt. 8M, NY, NY 10021. Purpose: State of NY (SSNY) on 8/19/14. structure of an agreement from your Any Lawful Purpose. Office location: NY County. SSNY company would entail. *Space is limited Notice of Formation of Selby Lake Too designated as agent of LLC upon This RFI does not constitute a Request for LLC. Arts. of Org. filed with NY Dept. ROYAL 202, L.L.C., Articles of whom process against it may be Qualifications (RFQ), a Request for of State on 7/21/14. Office location: Organization filed NY Sec of State served. SSNY shall mail process to: Proposals (RFP) or an Invitation for Bid NY County. Sec. of State designated (SSNY) 07/17/2014. Office in NEW F.H. Wadsworth, 77 W. 85th Street, (IFB), nor does it represent a commitment agent of LLC upon whom process YORK County. 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Office: New Office location: New York County. Office location: NY County. Princ. Realty Associates LLC. Certificate Northwest Registered Agent, LLC, 90 York County. SSNY designated as SSNY is designated as agent upon office of LLC: 1729 1st Ave., Apt. 6F, filed with Sec. of State of NY (SSNY) State St., Ste. 700, Office 40, Albany, agent of the LLC upon whom process whom process against the LLC may NY, NY 10128. SSNY designated as on 5/11/06. Office location: NY County. NY 12207. General Purposes. against it may be served. SSNY shall be served. SSNY shall mail process agent of LLC upon whom process SSNY designated agent of LLC upon mail copy of process to the LLC, 213 to The LLC, 141 E. 88th St., Unit 10F, against it may be served. SSNY shall whom process against it may be Notice of Formation of MAZL 138TH West 35th Street, #400, New York, NY NY, NY 10128. General Purposes. mail process to Patricia Ives, c/o the served and shall mail process to: c/o LLC. Arts of Org filed with Secy of 10001. Purpose: Any lawful purpose. LLC, at the princ. office of the LLC. Ed Dulchin, 170 7th Ave., NY, NY State of NY (SSNY) on 11/6/13. Notice of Qualification of LEE EQUITY Purpose: Any lawful activity. 10011. Purpose: any lawful activity. Office location: NY County. SSNY NOTICE OF QUALIFICATION of STRATEGIC PARTNERS FUND designated agent upon whom process MEDLEY SMA ADVISORS LLC. INTERLUXE AIV, L.P. Authority filed Notice of Qualification of BROOKFIELD Notice of Qualification of Wind may be served and shall mail copy of Authority filed with Secy of State of NY with Secy. of State of NY (SSNY) on RETAIL HOLDINGS II SUB II LLC. Financial Information LLC. Authority process against LLC to principal (SSNY) on 8/08/14. Office location: 09/04/14. Office location: NY County. Authority filed with Secy. of State of NY filed with NY Dept. of State on business address: 251 West 138th NY County. LLC formed in DE on LP formed in Delaware (DE) on (SSNY) on 08/20/14. Office location: 9/24/14. Office location: NY County. Street, New York, NY 10030. 6/27/14. SSNY designated agent upon 08/27/14. Princ. office of LP: 650 NY County. LLC formed in Delaware Princ. bus. addr.: 54 W. 40th St., NY, Purpose: any lawful act. whom process may be served and Madison Ave., NY, NY 10022. SSNY (DE) on 10/17/13. Princ. office of LLC: NY 10018. LLC formed in DE on shall mail copy of process against LLC designated as agent of LP upon whom 250 Vesey St., 15th Fl., NY, NY 10281- 8/6/14. NY Sec. of State designated Notice of Formation of SUPERIEUR to: CORP SERVICE COMPANY, 80 process against it may be served. SSNY 1023. SSNY designated as agent of agent of LLC upon whom process CONSULTING, LLC. Arts. of Org. filed STATE ST, ALBANY, NY 12207. shall mail process to the Partnership LLC upon whom process against it may against it may be served and shall with Secy. of State of NY (SSNY) on Principal business address: 375 PARK at the princ. office of the LP. Name be served. SSNY shall mail process mail process to: c/o CT Corporation 09/18/14. Office location: NY County. AVE, 33RD FLR, NY NY 10152. DE and addr. of each general partner are to c/o Corporation Service Co., 80 System, 111 8th Ave., NY, NY 10011, SSNY designated as agent of LLC address of LLC:2711 CENTERVILLE available from SSNY. DE addr. of LP: State St., Albany, NY 12207-2543. DE regd. agent upon whom process may upon whom process against it may be RD, STE 400, WILMINGTON, DE Corporation Service Co., 2711 addr. of LLC: 2711 Centerville Rd., Ste. be served. DE addr. of LLC: 1209 served. SSNY shall mail process to 19808. Certificate of LLC filed with Centerville Rd., Ste. 400, Wilmington, 400, Wilmington, DE 19808. Arts. of Orange St., Wilmington, DE 19801. Corporation Service Co., 80 State St., Secy of State of DE located at: DE 19808. Arts. of Org. filed with DE Org. filed with DE Secy. of State, Div. Cert. of Form. filed with DE Sec. of Albany, NY 12207, regd. agent upon Division of Corp, John G. Townsend Secy. of State, State of DE, Div. of of Corps., John G. Townsend Bldg., State, 401 Federal St., Dover, DE whom and at which process may be Bldg., 401 Federal St, Ste 4, Dover, Corps., 401 Federal St., Dover, DE 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: all lawful purposes. served. Purpose: Any lawful activity. DE 19901. Purpose: any lawful act. 19901. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity.

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Notice of Qualification of Bluehenge Notice of Qualification of 1901 First Notice of Qualification of Ocean Light NOTICE OF QUALIFICATION of MOF NOTICE OF FORMATION OF Art of Capital Secured Debt SBIC, L.P. Street Associates, LLC. Authority Productions, LLC. Authority filed with III GP LLC. Authority filed with Secy of Anesthesia, PLLC. Articles of Authority filed with NY Dept. of State filed with Secy. of State of NY (SSNY) Secy. of State of NY (SSNY) on State of NY (SSNY) on 8/11/14. Office Organization filed with the Sec. of on 9/5/14. Office location: NY County. on 09/24/14. Office location: NY 05/27/14. Office location: NY County. location: NY County. LLC formed in State of NY (SSNY) on Aug. 7, 2014. Princ. bus. addr.: 152 W. 57th St., 20th County. LLC formed in Delaware (DE) LLC formed in Delaware (DE) on DE on 3/27/14. SSNY designated Office location: New York Co. SSNY Fl., NY, NY 10019. LP formed in DE on on 09/25/13. SSNY designated as 05/21/14. SSNY designated as agent agent upon whom process may be has been designated as agent upon 1/29/14. NY Sec. of State designated agent of LLC upon whom process of LLC upon whom process against served and shall mail copy of process whom process against it may be agent of LP upon whom process against it may be served. SSNY it may be served. SSNY shall mail against LLC to: CORP SERVICE served. The Post Office address to against it may be served and shall shall mail process to: National process to: c/o Larry Wasserman, COMPANY, 80 STATE ST, ALBANY, which the SSNY shall mail a copy of mail process to: c/o CT Corporation Registered Agents, Inc., 111 Eighth 100 Universal City Pl., Bldg., 5121, NY 12207. Principal business any process against the PLLC served System, 111 8th Ave., NY, NY 10011, Ave., NY, NY 10011. Address to be Universal City, CA 91608. Address address: 375 PARK AVE, 33RD FLR, upon him/her is: Art of Anesthesia, regd. agent upon whom process may maintained in DE: 160 Greentree Dr., to be maintained in DE: c/o 3500 S. NY NY 10152. DE address of LLC: PLLC, c/o Julia Iwamasa, 752 West be served. DE addr. of LP: The Ste. 101, Dover, DE 19904. Arts of Dupont Hwy, Dover, DE 19901. Arts 2711 CENTERVILLE RD, STE 400, End Ave 21B, New York, NY 10025. Corporation Trust Co., 1209 Orange St., Org. filed with the DE Secy. of State, of Org. filed with the DE Secy. of WILMINGTON, DE 19808. Certificate The principal business address of the Wilmington, DE 19801. Name/addr. John G. Townsend Bldg., 401 State, John G. Townsend Bldg., 401 of LLC filed with Secy of State of DE PLLC is: 752 West End Ave 21B, of genl. ptr. available from NY Sec. of Federal St., Ste. 4, Dover, DE 19901. Federal St., Ste. 4, Dover, DE 19901. located at: Division of Corp, John G. New York, NY 10025. Purpose: any State. Cert. of LP filed with DE Sec. Purpose: any lawful activities. Purpose: any lawful activities. Townsend Bldg., 401 Federal St, Ste lawful act or activity. of State, 401 Federal St., Dover, DE 4, Dover, DE 19901. Purpose: any 19901. Purpose: all lawful purposes. lawful act. 15 EAST 128TH STREET LLC, Arts. of Notice of Formation of RAFFLES Notice of Formation of AMG 104 Org. filed with the SSNY on 08/07/2014. BISTRO LLC. Arts. of Org. filed with Quickserve LLC. Arts. of Org. filed Notice of Formation of PJ 207 LLC. Office loc: NY County. SSNY has Secy. of State of NY (SSNY) on 2254 LLC. Arts. of Org. filed with Secy. with Secy. of State of NY (SSNY) on Arts. of Org. filed with Secy. of State of been designated as agent upon 09/04/14. Office location: NY County. of State of NY (SSNY) on 07/17/14. 8/20/14. Office location: NY County. NY (SSNY) on 09/15/14. Office loca- whom process against the LLC may SSNY designated as agent of LLC Off. loc.: NY Co. SSNY des. as agent SSNY designated as agent of LLC tion: NY County. SSNY designated be served. SSNY shall mail process upon whom process against it may be of LLC upon whom process may be upon whom process against it may as agent of LLC upon whom process to: 17 E 128th St., NY, NY 10035. served. SSNY shall mail process to served. SSNY shall mail process to be served. SSNY shall mail process against it may be served. SSNY shall Purpose: Any Lawful Purpose. the LLC, 511 Lexington Ave., NY, NY c/o Silver Star Properties Corp., 350 to: c/o Atlantis Management Group, mail process to c/o Rosenberg & 10017. Purpose: Any lawful activity. 5th Ave., Ste 6908, New York, NY 555 So. Columbus Avenue, Ste. 201, Estis, P.C., Attn: Michael E. Lefkowitz 10118. Purpose: General. Mt. Vernon, NY 10550. Purpose: any Esq., 733 Third Ave., NY, NY 10017. Charles K. Goldner, LLC. Arts. of Org. lawful activity. Purpose: Any lawful activity. filed with Secy. of State of NY (SSNY) Name of LLC: Summers BK LLC. Arts. on 05/26/99. Off. loc.: NY Co. SSNY of Org. filed with NY Dept. of State: Noble Sensors, LLC. Arts. of Org. NOTICE OF FORMATION OF Red des. as agent of LLC upon whom 5/16/13. Office loc.: NY Co. Sec. of filed with Secy. of State of NY (SSNY) Room Hospitality LLC. Arts of Org Notice of Formation of CA 40-56 process may be served. SSNY shall State designated agent of LLC upon on 08/27/14. Off. loc.: NY Co. SSNY Tenth Holdings LLC. Arts. of Org. filed with Secy of State of NY (SSNY) mail process to 155 West 72nd St., New whom process against it may be des. as agent of LLC upon whom on 08/11/14. Office location: NY filed with Secy. of State of NY York, NY 10023. Purpose: General. served and shall mail process to: c/o process may be served. SSNY shall (SSNY) on 8/14/14. Office location: County. SSNY designated as agent Business Filings Inc., 187 Wolf Rd., mail process to c/o Robinson Brog, et upon whom process may be served NY County. SSNY designated as Ste. 101, Albany, NY 12205, regd. agt. al., Attn: Marshall J. Gluck, 875 3rd agent of LLC upon whom process NEVILLE DANCE THEATRE LLC, a and shall mail copy of process against upon whom process may be served. Ave., 9th Fl., New York, NY 10022. LLC to: 95 Delancey Street, New against it may be served. SSNY shall domestic LLC, filed with the SSNY Purpose: any lawful act. Purpose: General. mail process to: c/o The LLC, 1407 on 8/5/14. Office location: New York York, NY 10002. Principal business Broadway, 41st Fl., NY, NY 10018. County. SSNY is designated as agent address: 95 Delancey Street, NY, NY Purpose: any lawful activity. upon whom process against the LLC Notice of Formation of White Crest Notice of Formation of PCDC Health 10019. Purpose: any lawful act. may be served. SSNY shall mail Consulting LLC. Arts. of Org. filed Opportunities Fund XI LLC. Arts. of process Brenda Neville, P.O. Box 1625, with Secy. of State of NY (SSNY) on Org. filed with NY Dept. of State on 41 West 68, LLC. Art. of Org. filed with BEE LIQUORS, LLC. Art. of Org. filed NY, NY 10101. General Purposes. 9/4/14. Office location: NY County. 6/13/14. Office location: NY County. the SSNY on 11/17/11. Office: New with the SSNY on 05/26/05. Latest SSNY designated as agent of LLC Sec. of State designated agent of LLC York County. SSNY designated as date to dissolve: 12/31/2104. Office: upon whom process against it may upon whom process against it may agent of the LLC upon whom process New York County. SSNY designated as Notice of Formation of 368 THIRD be served. SSNY shall mail process be served and shall mail process to: against it may be served. SSNY shall agent of the LLC upon whom process LLC. Arts. of Org. filed with Secy. of to: Davis & Gilbert LLP, 1740 Primary Care Development Corp., 45 mail copy of process to the LLC, c/o against it may be served. SSNY shall State of NY (SSNY) on 09/11/14. Office Broadway, NY, NY 10019. Purpose: Broadway, Ste. 530, NY, NY 10006, Trinidad Hidalgo, 80 Central Park West, mail copy of process to the LLC, 225 location: NY County. Princ. office of any lawful activity. principal business address. Purpose: Apartment 22F, New York, New York Avenue B, New York, NY 10009. LLC: c/o Continental Ventures, 641 any lawful activity. 10023. Purpose: Any lawful purpose. Purpose: Any lawful purpose. Lexington Ave., 24th Fl., NY, NY 10022. SSNY designated as agent of LLC Notice of Formation of F4 Service upon whom process against it may Group LLC, Art. of Org. filed Secy. of 3Square Project Management LLC. 15.5 Partners LLC. Arts. of Org. filed PENN EQUITY GROUP LLC, Arts. of be served. SSNY shall mail process State of NY (SSNY) on 11/12/2013. Arts. of Org. filed with Secy. of State with Secy. of State of NY (SSNY) on Org. filed with the SSNY on 07/23/2014. to the LLC at the princ. office of the Office location: New York County. of NY (SSNY) on 08/27/14. Off. loc: NY 06/26/14. Off. loc.: NY Co. SSNY des. Office loc: NY County. SSNY has LLC. Purpose: Any lawful activity. SSNY Designated as agent of LLC County. SSNY des. as agent of LLC as agent of LLC upon whom process been designated as agent upon whom upon whom process against it may upon whom process may be served. may be served. SSNY shall mail process against the LLC may be SSNY shall mail process to c/o process to 810 7th Ave., 18th Fl., New Notice of Qualification of INTEGRATED be served. SSNY shall mail copy of served. SSNY shall mail process to: Robinson Brog, et al., Attn: Neil S. York, NY 10019. Purpose: General. MACRO ADVISORS, LP. Authority process to: The LLC, 9 Broadway, 21 E. 4th St., Ste 617, NY, NY 10003. Goldstein, 875 Third Ave., 9th Fl., New filed with Secy. of State of NY (SSNY) New York, NY 10004. Purpose: any Reg. Agent: Jaime Kurt Oriol, 21 E. York, NY 10022. Purpose: General. on 08/14/14. Office location: NY lawful activity. AZIMUTH MORNINGSIDE LLC, a 4th St., Ste 617, NY, NY 10003. County. LP formed in Cayman Islands domestic LLC, filed with the SSNY Purpose: Any Lawful Purpose. (C.I.) on 07/21/14. Princ. office of LP: NOTICE OF QUALIFICATION of MOF Notice of Qualification of MHR on 6/20/14. Office location: New York c/o Integrated Macro Advisors, LLC, III MANAGEMENT LLC.Authority filed INSTITUTIONAL PARTNERS IV LP. County. SSNY is designated as agent NOTICE OF FORMATION OF A. M. Attn: Howard Kurz, 450 Park Ave., Ste. with Secy of State of NY (SSNY) Authority filed with Secy. of State of NY upon whom process against the LLC RICHARDSON, III, LLC. Articles of 1901, NY, NY 10022. SSNY designated 8/26/14. Office location: NY County. (SSNY) on 06/26/14. Office location: NY may be served. SSNY shall mail Organization filed with the Secretary of as agent of LP upon whom process LLC formed in DE on 3/27/14. SSNY County. LP formed in Delaware (DE) on process to Azimuth Development State of NY (SSNY) on 08/12/2013. against it may be served. SSNY shall designated agent upon whom 12/21/11. Princ. office of LP: 40 W. 57th Group LLC, 40 Fulton St., 12th Fl., Office location: NEW YORK. SSNY mail process to the LP at the addr. of process may be served and shall St., 24th Fl., NY, NY 10019. SSNY NY, NY 10038. General Purposes. has been designated as agent upon its princ. office. Name and addr. of each mail copy of process against LLC to: designated as agent of LP upon whom whom process against it may be general partner are available from SSNY. CORP SERVICE COMPANY, 80 process against it may be served. Notice of Formation of SNB NYC served. The Post Office address to C.I. addr. of LP: c/o Maples and Calder, STATE ST, ALBANY, NY 12207. SSNY shall mail process to the LP at Consulting LLC. Arts. of Org. filed which the SSNY shall mail a copy of P.O. Box 309, Ugland House, S. Church Principal business address: 375 PARK the addr. of its princ. office. Name and with NY Dept. of State on 8/8/14. any process against the LLC served St., George Town, Grand Cayman, C.I. AVE, 33RD FLR, NY NY 10152.DE addr. of each general partner are Office location: NY County. Sec. of upon him/her is: 40 Wall Street, 35th KY1-1104. Arts. of Org. filed with address of LLC: 2711 CENTERVILLE available from SSNY. DE addr. of LP: State designated agent of LLC upon Floor, New York, NY 10005. The Registrar of Exempted Limited RD, STE 400, WILMINGTON, DE c/o Corporation Service Co., 2711 whom process against it may be principal business address of the Partnership, Registrar of Companies, 19808. Certificate of LLC filed with Centerville Rd., Wilmington, DE 19808. served and shall mail process to: c/o LLC is: 40 Wall Street, 35th Floor, P.O. Box 123, Ground Fl., Government Secy of State of DE located at: Arts. of Org. filed with Secy. of State CT Corporation System, 111 8th New York, NY 10005. Dissolution Admin. Bldg., 133 Elgin Ave., George Division of Corp John G. Townsend of DE, Dept. of State, Div. of Corps., Ave., NY, NY 10011, regd. agent Date: (If Applicable). Purpose: any Town, Grand Cayman, C.I. KY1-9000. Bldg,401 Federal St, Ste 4, Dover, John Townsend Bldg., Dover, DE upon whom process may be served. lawful act or activity. Purpose: Any lawful activity. DE 19901. Purpose: any lawful act. 19901. Purpose: Any lawful activity. Purpose: all lawful purposes.

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double-digit monthly sales growth retail apparel and textile industry. Two companies in particular planning a temporary Big Apple lo- since its debut.“You can’t rationalize Those who can afford it are rela- have gained mass appeal on a social- cation in time for holiday shopping. Fashion how people can be paid fairly for $3 tively few, making the clothing a ly conscious platform: Toms Shoes The Long Island City, Queens- tanktops and not have great environ- niche trend and, like the farm-to- donates a pair of shoes to someone based company also will expand into Continued from Page 1 mental dangers associated with it.” table movement, a possible subject in need for every pair it sells. Warby beauty in the next few months, said that has faced worldwide condem- Mr. Lidow found his sheep on a of parody. (One could imagine the Parker does the same with glasses. Melissa Cantor, a co-founder. nation for the use of South Asian farm in Central Otago, on New comedy series Portlandia skewering “There’s an opportunity to edu- Zady, too, is putting together a sweatshops and dissatisfaction over Zealand’s South Island, and a 100- fashionistas as it did foodies in its cate consumers about the value of a holiday shop, while Of a Kind is inexpensive, trendy clothing de- year-old mill nearby. Manufactured popular chicken-cult sketch, in piece and why it costs what it does,” looking into partnerships with some signed to last only a short period of at a factory outside Los Angeles, which a couple leaves a restaurant said Of a Kind’s co-founder Claire existing brick-and-mortar retailers. time and sold by fast-fashion giants his sweaters now sell from his table mid-order to visit the local Mazur.“It creates an emotion with- It’s still early to see huge sales suc- such as Zara and H&M. Brooklyn-based website. farm of the fowl they plan on eating, in the purchasing act.” cess, but most companies are grow- For a handful of labels,the stories a “heritage breed, woodland-raised Retail chains are paying atten- ing in both size and awareness.Zady behind their eco-friendly or ethical- Paying a premium chicken that’s been fed a diet of tion. The Retail Industry Leaders recently doubled its office space, ly made wares are a selling point.De- High-minded clothing, howev- sheep’s milk, soy and hazelnuts.”) Association and nonprofit Forum moving downtown from Chelsea. tails about natural dyes and do-good er, is not cheap. Mr. Lidow, who Still, those who can afford it say for the Future recently introduced a Mr.Lidow,who plans to expand into designers are part of the sales pitch started his company with $100,000 it’s worth the extra money: The project on sustainability strategies cotton in a few months,expects to be on e-commerce site Of a Kind,based of his own money,estimates that his clothing will last longer. that was sponsored by Target Corp. profitable, though not hugely so. in the financial district. One-year- production methods are about two Mr. Hertzman said the invest- Denim brand Levi’s has pledged “This is an economically viable old Zady sells about 60 sustainable and a half times more expensive ment community has taken notice. to use less water when making its model,” he said. “It’s not too expen- labels and plans to launch its own than those of conventional retailers. Several of these e-commerce com- jeans, and more brands are begin- sive to produce excellent design line this year. Even large retailers are “Consumers have to pay a premi- panies are attracting funding. Zady ning to engage in exchange pro- with excellent production at afford- taking notice. um for that if they want the most so- has received $1.4 million thus far, grams so old goods can be recycled. able costs. Those things can coexist “It’s time to pay attention to how cially conscious product,” said Ed- and Everlane, a San Francisco- Though most of these new play- happily.” Ⅲ your things are made,” said Soraya ward Hertzman, founder and based firm well known for pioneer- ers are online,many host regular pop- Darabi, co-founder and co-chief ex- publisher of Sourcing Journal,an on- ing sustainable fashion,has generat- up shops.Ethica tells the stories of all LISTEN to a discussion at ecutive of Zady, which has seen line publication that focuses on the ed $1.1 million. its apparel and accessories and is CrainsNewYork.com/podcasts

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Notice of Qualification of ARC Notice of Qualification of BSREP UA Notice of Qualification of ARC NOTICE OF QUALIFICATION of Notice of Qualification of Northwood Hospitality Portfolio I HIL TRS, LLC. Miles LLC. Authority filed with Secy. Hospitality Portfolio I Owner, LLC. MEDLEY OPPORTUNITY FUND III Securities LLC. Authority filed with Authority filed with Secy. of State of NY of State of NY (SSNY) on 08/22/14. Authority filed with Secy. of State of NY LP. Authority filed with Secy of State NY Dept. of State on 8/6/14. Office (SSNY) on 09/25/14. Office location: Office location: NY County. LLC (SSNY) on 09/25/14. Office location: of NY (SSNY) 8/11/14. Office location: location: NY County. Princ. bus. NY County. LLC formed in Delaware formed in Delaware (DE) on 08/13/14. NY County. LLC formed in Delaware NY County. LP formed in DE on addr.: 575 5th Ave., 23rd Fl., NY, NY (DE) on 09/11/14. Princ. office of Princ. office of LLC: Brookfield Pl., 250 (DE) on 07/23/14. Princ. office of LLC: 3/27/14. SSNY designated agent upon 10017. LLC formed in DE on 5/30/14. LLC: 106 York Rd., Jenkintown, PA Vesey St., NY, NY 10281-1023. SSNY 106 York Rd., Jenkintown, PA 19046. whom process may be served and NY Sec. of State designated agent of 19046. SSNY designated as agent of designated as agent of LLC upon SSNY designated as agent of LLC shall mail copy of process against LP LLC upon whom process against it LLC upon whom process against it may whom process against it may be upon whom process against it may to: CORP SERVICE COMPANY, 80 may be served and shall mail process be served. SSNY shall mail process served. SSNY shall mail process to be served. SSNY shall mail process STATE ST, ALBANY, NY 12207. to: c/o CT Corporation System, 111 to c/o CSC, 80 State St., Albany, NY Corporation Service Co. (CSC), 80 to c/o CSC, 80 State St., Albany, NY Principal business address: 375 PARK 8th Ave., NY, NY 10011, regd. agent 12207. DE addr. of LLC: 2711 State St., Albany, NY 12207-2543. DE 12207. DE addr. of LLC: 2711 AVE, 33RD FLR, NY NY 10152. DE upon whom process may be served. Centerville Rd., Ste. 400, Wilmington, addr. of LLC: CSC, 2711 Centerville Centerville Rd., Ste. 400, Wilmington, address of LP: 2711 CENTERVILLE DE addr. of LLC: The Corporation DE 19808. Arts. of Org. filed with DE Rd., Ste. 400, Wilmington, DE 19808. DE 19808. Arts. of Org. filed with DE RD, STE 400, WILMINGTON, DE Trust Co., 1209 Orange St., Secy. of State, Div. of Corps., 401 Arts. of Org. filed with DE Secy. of Secy. of State, Div. of Corps., 401 19808. Certificate of LP filed with Wilmington, DE 19801. Cert. of Form. Federal St., Ste. 4, Dover, DE 19901. State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Secy of State of DE located at: filed with DE Sec. of State, 401 Purpose: Any lawful activity. Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. Division of Corp John G. Townsend Federal St., Dover, DE 19901. Purpose: Any lawful activity. Bldg,401 Federal St,Ste 4,Dover,DE Purpose: all lawful purposes. Notice of Formation of Trask Foods, Notice of Formation of ORIENTIS 19901. Purpose: any lawful act. LLC. Arts. of Org. filed with NY Dept. Notice of Formation of ACMOS on GROUP HOLDINGS, LLC. Arts. of NOTICE OF FORMATION OF 66 of State on 9/2/14. Office location: Chrystie LLC. Arts. of Org. filed with Org. filed with Secy. of State of NY GREGORY WAYNE DESIGNS LLC, PEARL STREET HOLDING LLC. Arts NY County. Princ. bus. addr.: 411 W. Secy. of State of NY (SSNY) on (SSNY) on 08/15/14. Office location: NY Arts. of Org. filed with the SSNY on of Org filed with Secy of State of NY 14th St., 4th Fl., NY, NY 10014. Sec. 8/21/14. Office location: NY County. County. SSNY designated as agent 08/20/2014. Office loc: NY County. (SSNY) on 9/9/14. Office location: NY of State designated agent of LLC SSNY designated as agent of LLC of LLC upon whom process against SSNY has been designated as agent County. SSNY designated agent upon upon whom process against it may upon whom process against it may be it may be served. SSNY shall mail upon whom process against the LLC whom process may be served and be served and shall mail process to: served. SSNY shall mail process to: process to Ballon Stoll Bader & may be served. SSNY shall mail shall mail copy of process against CT Corporation System, 111 8th c/o Nexus Building Development Nadler, 729 7th Ave., 17th Fl., NY, NY process to: 145 E 84th St., 9D, NY, LLC to principal business address: Ave., NY, NY 10011, regd. agent Group Inc., 41 Wooster St., Ste. 2, NY, 10019. Purpose: Any lawful activity. NY 10028. Purpose: Any Lawful 260 Madison AV, Ste 204, NY NY upon whom process may be served. NY 10012. Purpose: any lawful activity. Purpose. 10016. Purpose: any lawful act. Purpose: all lawful purposes. NOTICE OF FORMATION OF SJ Qualification of Blackstone Property Musovic Management LLC. Articles of Qualification of Blackstone Property NOTICE OF FORMATION OF LIMITED NOTICE OF FORMATION OF GWEE Partners L.P. Authority filed with the Organization filed with the Secretary Partners F.1 L.P. Authority filed with LIABILITY COMPANY. NAME: LLC. Articles of Organization filed Sect of State of NY (SSNY) on 9/5/14. of State of NY (SSNY) on May 12, 2014. the Sect of State of NY (SSNY) on KATESHIN GALLERY LLC. Articles of with the Secretary of NY (SSNY) on Office Loc: NY County. LP formed in Office location: NEW YORK. SSNY 9/4/14. Office Loc: NY County. LP Organization were filed with the 06/03/2014. Office location: New York DE on 6/30/14. SSNY has been has been designated as agent upon formed in DE on 6/30/14. SSNY has Secretary of State of New York County. SSNY has been designated designated as agent of LP upon whom whom process against it may be been designated as agent of LP (SSNY) on 05/23/14. Office location: as agent upon whom process against process against it may be served and served. The Post Office address to upon whom process against it may New York County. SSNY has been it may be served. The Post Office shall mail process to: 200 Bellevue which the SSNY shall mail a copy of be served and shall mail process to: designated as agent of the LLC upon address to which the SSNY shall mail Pkwy, Ste 210, Wilmington, 19809. DE any process against the LLC served 200 Bellevue Pkwy, Ste 210, whom process against it may be a copy of any process against the LLC address of LP: 200 Bellevue Pkwy, Ste upon him/her is: 244 East 79 Street, Wilmington, 19809. DE address of served. SSNY shall mail a copy of served upon him/her is : 301 East 210, Wilmington, 19809. Name/addr New York, NY 10021 The principal LP: 200 Bellevue Pkwy, Ste 210, process to the LLC, c/o Kate 22nd Street, Apt#9M, New York , NY of genl ptr avail from SSNY. Cert of business address of the LLC is: 244 Wilmington, 19809. Name/addr of Junghee Shin, 170 East 80th Street, 10010. The principal business address LP filed with DE Sect of State, 401 East 79 Street, New York, NY 10021. genl ptr avail from SSNY. Cert of LP New York, New York 10075. Purpose: of the LLC is: 301 East 22nd Street, Federal St, Ste 4, Dover, DE 19901. Dissolution Date: (If Applicable). filed with DE Sect of State, 401 For any lawful purpose. Apt #9M, New York, NY 10010. Purpose: any lawful activity. Purpose: any lawful act or activity. Federal St, Ste 4, Dover, DE 19901. Purpose:any lawful act or activity. Purpose: any lawful activity. Notice of Qualification of BSREP UA NOTICE OF QUALIFICATION of Notice of Qualification of Own Heritage LLC. Authority filed with Secy. 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LLC formed in DE on 7/8/13. designated as agent of LLC upon upon whom process against it may be OF FAIRFIELD. SSNY designated against it may be served. SSNY NY Sec. of State designated agent of whom process against it may be served. SSNY shall mail process to as agent of LLC upon whom process shall mail process to: 45 Main St., LLC upon whom process against it served. SSNY shall mail process to c/o Corporation Service Co., 80 State against it may be served. SSNY Ste. 536, Brooklyn, NY 11201. may be served and shall mail process Corporation Service Co. (CSC), 80 St., Albany, NY 12207-2543. VA addr. shall mail process to the LLC at addr. Address to be maintained in DE: c/o to: c/o CT Corporation System, 111 State St., Albany, NY 12207-2543. DE of LLC: 8260 Greensboro Dr., Ste. of its princ. office: 33 Miller Street, Incorporating Services, Ltd., 3500 S. 8th Ave., NY, NY 10011. DE addr. of addr. of LLC: CSC, 2711 Centerville 150, McLean, VA 22102. Arts. of Org. Fairfield, CT 06824. Arts. of Org. filed Dupont Hwy, Dover, DE 19901. Arts LLC: The Corporation Trust Co., 1209 Rd., Ste. 400, Wilmington, DE 19808. filed with Clerk of the Commission with CT Secy. of State, 30 Trinity of Org. filed with the DE Secy. of Orange St., Wilmington, DE 19801. Arts. of Org. filed with DE Secy. of Commonwealth of VA, Tyler Bldg., Street, Hartford, CT 06106. Purpose: State, John G. Townsend Bldg., 401 Cert. of Form. filed with DE Sec. of State, John G. Townsend Bldg., 401 1300 E. Main St., Richmond, VA Medicine. The LLC is to be managed Federal St., Ste. 4, Dover, DE 19901. State, 401 Federal St., Dover, DE Federal St., Ste. 4, Dover, DE 19901. 23219. Purpose: Any lawful activity. by one or more managers. Purpose: any lawful activities. 19901. Purpose: all lawful purposes. Purpose: Any lawful activity.

28 | Crain’s New York Business | October 6, 2014 20141006-NEWS--0029-NAT-CCI-CN_-- 10/3/2014 2:25 PM Page 1

REAL ESTATE

“The firm has had so much growth and success here, it’s part of Downtown site BARE BONES High prices take toll who we are and our good fortune,” fetches $171M 883 SIXTH AVE. said Barry Wolf, Weil’s executive ASKING RENT; partner. “There’s something nice With many developers predicting TERM: High $50s about sitting in our conference cen- that demand for residential prop- per square foot; on residential sales ter and overlooking the park.” erty in the financial district is set to 16 years Rents at the General Motors soar,the price of development sites SQUARE FEET: he median price of Manhattan homes inched up only slightly Building soar to about $200 per in the area has already taken off. A 23,000 during the third quarter of the year, but all too many owners are square foot for the top floors,among case in point is a deal in which a TENANT; REPS: pricing their properties as though the market were still soaring, the highest rates in the city.Accord- building site was sold by a develop- The Yard; Lance according to several real estate experts. ing to market sources, the asking er for $171 million—more than Leighton and Evan Margolin of The median sales price for a Manhattan home hovered prices for space in the tower’s mid- triple what it paid less than two Savills Studley around $900,000, according to reports released last week. But despite an in- section could be as high as $125 to years ago. T LANDLORD; REP: ventory jump of nearly 25% from last year,the volume of sales slumped near- $150 per square foot. In that transaction, the Light- Tower 111; Barry ly 15%. Many experts believe the decline can partly be attributed to sellers, That would make Weil’s transac- stone Group closed on the sale of a Goodman of inspired by the aggressive pricing at some trophy condos across the city,who tion, which totals about 400,000 downtown development site at Newmark Grubb square feet, one of the priciest seen 112, 114, 116 and 118 Fulton St.,on Knight Frank are overpricing their apartments. ers to become more cost-sensitive in in the city in years. the corner of Dutch Street, to a BACK STORY: The co-working-space “[These sellers] feel like they are order to avoid overpaying for an as- Mr. Wolf, acknowledged the California firm that plans to build provider will take the entire second going to ride the wave,” said Pamela set whose value may not double in building’s nosebleed rates, but said a 63-story tower there, according floor at its new location, its fifth in the Liebman,chief executive of the Cor- the near term. —joe anuta that Weil and the tower’s landlord,a to official city records. city. coran Group. “But the buyers are partnership led by Boston Proper- The property, including devel- leaving their surfboards at home.” ties, found ways to make the deal opment rights, was bought by San new office space is set to come on- Although the supply of apart- Big law firm more economical. The tenant also Francisco-based real estate firm line in the near future. That trans- ments on the market is low by histor- inks pricey lease renewed for about 100,000 square Carmel Partners. The transaction lates to roughly 60,000 jobs being ical standards, buyers are still reluc- feet less than it currently occupies comes less than two years after Light- added in the area, yet only about tant to pay up for what they can get. The largest tenant in one of the city’s and will fit its staff into the new stone reportedly paid $63 million for 3,000 new apartments are planned, “They aren’t seeing the addition- most expensive office towers has de- space by building more efficient of- a number of sites along Fulton Street, according to Lightstone Chief Ex- al inventory coming out because cided to pay the freight for another fices during the renovation. along with hundreds of thousands of ecutive David Lichtenstein. they aren’t going to look at some- decade and a half. Weil was represented in the square feet in development rights “That means housing and rental thing if it is overpriced,” said Law firm Weil Gotshal & transaction by a CBRE leasing team from surrounding parcels. values should increase exponential- Jonathan Miller, chief executive of Manges, which moved into the led by Robert Flippin and Lewis The dramatic increase in value ly,” he said. His firm had crunched appraisal firm Miller Samuel,which General Motors Building when it Miller, as well as by Weil real estate comes as construction of office those numbers when it first bought prepared the report for Douglas opened in 1968, has renewed its partners Michael Bond and Philip space has outpaced that of housing the parcel, but nonetheless couldn’t Elliman Real Estate. lease for 15 years. The marble-clad Rosen. A CBRE leasing team also in a neighborhood where more than turn down the offer from Carmel By all accounts, the more stable Fifth Avenue tower is regarded as represents the building’s owners. a third of residents walk to work.All when it unexpectedly came in. rate of price growth has caused buy- one of the city’s premier properties. —daniel geiger told, about 12 million square feet of —joe anuta

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October 6, 2014 | Crain’s New York Business | 29 20141006-NEWS--0030-NAT-CCI-CN_-- 10/3/2014 2:25 PM Page 1

FOR THE RECORD

New York City School Construction ● Just Salad signed a 10- to 15-year lease Giovanni Caforio, chief operating Authority.To make inquiries, contact for 2,700 square feet at 2056 Broadway officer, sold 26,691 shares of common ABOUT THIS SECTION Stacia Edwards at (718) 752-5849 or on the Upper West Side. The eatery’s stock at $49.87 per share on Sept. 15, in FOR THE RECORD is a weekly listing of information from the public record that [email protected]. new location will be its 16th in New a transaction worth $1,331,155. He now can help businesspeople in the New York area find opportunities, potential York City.The tenant was represented directly holds 40,755 shares. GOODS AND SERVICES by Charles Rapuano of Winick Realty new clients and updates on competitors. ● Department of Information Technology Group. The landlord, the Brodsky ● ABM Industries (ABM) To ask questions or get more information on this section, contact Crain’s and Telecommunications Organization, was represented by James P.McClure, executive vice research department at [email protected]. Seeks competitive sealed bids by 2 p.m. Winick’s Steven E. Baker. The asking president, exercised options on 69,349 on Oct. 16 for audio and video switching rent was $25,000 per month. shares of common stock at prices ranging at the Mayor’s Office of Media and from $17.90 to $25.30 per share between Entertainment. To make inquiries, Sept. 16 and Sept. 17, in a transaction NEW IN TOWN estimated liabilities of $100,001 to contact Anne Cody at (212) 788-6276 STOCK TRANSACTIONS worth $1,422,256. In the same period, he $500,000. The creditors with the largest or [email protected]. sold 109,148 shares of common stock at Companies that would like to have details unsecured claims are 260 Flatbush Following are recent insider transactions at prices ranging from $27.52 to $27.64 per of openings published should submit Avenue Realty, owed $300,000; Bucking ● Economic Development Corp. New York’s largest publicly held companies share, in a transaction worth $3,009,981. descriptions following this format to Bull, owed $42,000; and Rad & Dylan, Requests proposals by 4 p.m. on Oct. 17 filed with the Securities and Exchange He now directly holds 92,573 shares. [email protected], with “New owed $35,000. for the updating of its Waterfront Commission by executives and major in Town” in the subject line. Inspection Guidelines Manual, review shareholders. Listings are in order of ● Cambrex Corp. (CBM) ● Rancho Vida, dba Mamajuana Cafe of its inspection standards and an transaction value.The information was Shawn P.Cavanagh, executive vice ● King’s Clam Bar 570-572 Amsterdam Ave., Manhattan update to its Waterfront Facilities obtained from Thomson Reuters. president and chief operating officer, 622 Washington Ave., Brooklyn Filed for Chapter 11 bankruptcy Maintenance Management System. To sold 56,251 shares of common stock at The seafood restaurant opened in protection on Sept. 19. The filing cited make inquiries, contact Maryann ● Regeneron Pharmaceuticals (REGN) $22.56 per share on Sept. 11, in a Prospect Heights. The sustainable- estimated assets of $100,001 to Catalano at (212) 312-3969 or Sanofi purchased 172,349 shares of transaction worth $1,269,062. He now foods menu offers barbecue-style fish $500,000 and estimated liabilities of [email protected]. common stock at prices ranging from directly holds 46,250 shares. with a choice of six sauces and six salads, $100,001 to $500,000. The creditors $340.88 to $349.91 per share between as well as other seafood items. with the largest unsecured claims are Sept. 12 and Sept. 16, in a transaction ● Steven Madden Ltd. (SHOO) Signapay Ltd., owed $85,285; Internal REAL ESTATE DEALS worth $59,617,308. It now indirectly Arvind Dharia, chief financial officer ● MatchaBar Revenue Service, owed $50,887.65; and holds 22,377,200 shares. and secretary, sold 36,025 shares of 93 Wythe Ave., Brooklyn NYS Taxation & Finance, owed Companies that would like to have common stock at prices ranging from This matcha tea shop opened in $49,488.04. details of their recent transactions ● Bristol-Myers Squibb (BMY) $33.61 to $33.79 per share between Williamsburg. It serves items made with appear in these listings should email Francis M. Cuss, executive vice Sept. 15 and Sept. 16, in a transaction the green-tea powder, including lattes ● Rotenier Ltd., dba RMUSA Inc. descriptions following this format to president and chief scientific officer, worth $1,213,500. He now directly and guacamole. 15 W. 72nd St., Manhattan [email protected], research and development, exercised holds 128,079 shares. Filed for Chapter 11 bankruptcy with “Real estate transaction” in options on 63,667 shares of common ● Sincerely, Tommy protection on Sept. 21. The filing cited the subject line, or enter them online at stock at prices ranging from $24.74 to ● Nasdaq OMX Group Inc. (NDAQ) 343 Tompkins Ave., Brooklyn estimated assets of $500,001 to $1 crainsnewyork.com/submitadeal. Deals $25.45 per share on Sept. 16, in a Bruce E. Aust, executive vice president, This clothing boutique opened in million and estimated liabilities of are listed in order of square footage. transaction worth $1,602,575. On the corporate client group, sold 26,389 Bedford-Stuyvesant. It offers $500,001 to $1 million. The creditors same day, he sold 63,667 shares of shares of common stock at $43.75 per womenswear and lifestyle items from with the largest unsecured claims are COMMERCIAL common stock at $50.77 per share, in a share on Sept. 12, in a transaction worth both local and international designers Chase Line of Credit, owed ● Gawker Media signed a 15-year lease transaction worth $3,232,074. He now $1,154,519. He now directly holds and serves Irving Farm coffee. $199,883.62; MT&T Bank, owed for 58,900 square feet at 114 Fifth directly holds 238,446 shares. 72,350 shares. Ⅲ $146,000; and MT&T Bank, owed Ave. in the Flatiron district. The media ● Uniqulee $144,907. company’s space will span the second, 36 Mott St., Manhattan third and fourth floors of the 20-story The design store opened in Chinatown. office tower. The tenant was represented DEALS ROUNDUP It sells home-decoration items, GOVERNMENT CONTRACT by Jared Horowitz and Jonathan Tootell including a cast-iron piggy bank and a OPPORTUNITIES of Newmark Grubb Knight Frank. The handcrafted banana-fiber bowl. landlord, L&L Holding Co., was TRANSACTION SIZE Following are selected contract represented in-house by David Berkey TARGET/SELLERS (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE opportunities recently announced by New and Andrew Wiener. The asking rent Attachmate Group $2,302.4 Micro Focus International SB M&A COMPANY MOVES York City agencies.To learn how to sell was $78 per square foot. Inc./Thoma Cressey goods and services to city government, visit Bravo, Francisco Partners Companies that would like to have details www.nyc.gov/selltonyc. For a searchable ● AKF Group signed a 16-year lease for Management, Golden Gate 1 Liberty Plaza Capital, Elliott Management of recent moves published should submit database of current procurement notices, 57,000 square feet at in Corp. (Manhattan), Thoma descriptions following this format to visit www.nyc.gov/cityrecord. Listings are the financial district. The engineering Bravo, CCG AV-Series A, [email protected], with alphabetical by category and department. consulting firm will relocate its Times FP Annual Fund, Investors “Company Moves” in the subject line. Square office to the 22nd and 23rd CCG AV-Series C, Golden CONSTRUCTION SERVICES floors of the 54-story building. The Gate Capital Associates ● Fox’s ● Department of Design and Construction tenant was represented by Ruby Hwang, II-AI, Francisco Partners GP 147 E. 86th St., Manhattan Seeks competitive sealed bids by 11 a.m. Paul Mas, Mike Shenot and Roxanne Get AS/Goldman Sachs $2,156.6 TDC A/S SB M&A The national discount department store on Oct. 15 for the construction of storm Tehranian of JLL. The landlord, Group, Merchant Banking opened its third New York City location, appurtenances on Grantwood Avenue Brookfield Properties, was represented Division (Manhattan), on the Upper East Side. The store offers on Staten Island. Bid documents are in-house by Jeremiah Larkin and Quadrangle Capital Partners (Manhattan) coats, dresses and athletic wear. available at nyc.gov/buildnyc and require Duncan McQuaig, along with Nick a $35 deposit per set, payable by Berger, David Falk, Peter Shimkin and Portfolio of 52 hotels/ $1,100.0 NorthStar Realty Finance Corp. SB M&A ● Maje Inland American Real (Manhattan), Chatham Lodging Trust company check or money order. To Hal Stein of Newmark Grubb Knight Estate Trust Inc. 114 Spring St., Manhattan make inquiries, contact Emmanuel Frank. The asking rent was not The French fashion store opened its Charles at (718) 391-2200 or disclosed. Pioneer Corp., DJ $550.4 Kohlberg Kravis Roberts & Co. FB M&A Equipment Business/ (Manhattan) fifth Manhattan location, in SoHo. It [email protected]. Pioneer Corp. offers parkas, sweaters and boots for ● AIQ signed a 10-year lease for 9,300 women. ● Department of Parks and Recreation square feet at 1500 Broadway in Sierra Oil & Gas S. de $525.0 EnCap Investments, Riverstone Holdings GCI R.L. de C.V./not disclosed (Manhattan), Infraestructura Institucional Seeks competitive sealed bids by 10:30 midtown. The financial-information S. de R.L. de C.V. ● Patacon Pisao a.m. on Oct. 16 for the construction of a publisher will move out of subleased 180 Maiden Lane/SL $470.0 Clarion Partners Americas (Manhattan), SB M&A 139 Essex St., Manhattan rain garden and erosion control in space in the building into an office on Green Realty Corp. Murray Hill Properties (Manhattan) The Venezuelan eatery opened its third Westerleigh Park, located at Willard the top floor of the 33-story building. (Manhattan), Moinian New York City outpost, on the Lower Springfield, Neal Dow and Maine The tenant was represented by Gary Development Group East Side. The menu features plantain avenues on Staten Island. Bid Kamenetsky and Sam Seiler of CBRE. (Manhattan) sandwiches, sweet corn cakes and arepas. documents are available at the Blueprint The landlord, the Tamares Group, was Privia Health/not disclosed $400.0 Cardinal Partners, Goldman Sachs Group, GCI Room, Room 64, Olmsted Center, represented by Paul Amrich, Emily Merchant Banking Division (Manhattan), Flushing Meadows Corona Park, Jones and Patrice Meagher, also of Health Enterprise Partners (Manhattan), BANKRUPTCIES Queens, for a $25 fee, payable by CBRE. Asking rents in the space are in Pamplona Capital Management (Manhattan), company check or money order to the the $70s per square foot. Brighton Health Partners, Morgan Noble The following listings are selected from the City of New York, Parks and Recreation. Healthcare Partners most recent available filings by companies To make inquiries, contact Michael RETAIL Commercial condominium $275.0 SL Green Realty Corp. (Manhattan) SB M&A seeking bankruptcy protection in the Shipman at (718) 760-6705 or ● Shake Shack signed a lease for 3,300 units in office property Southern and Eastern Districts of New square feet at 1333 Broadway in Herald located at 55 W. 46th michael.shipman @parks.nyc.gov. St./not disclosed York. Information was obtained from U.S. Square, midtown. The burger and Bankruptcy Court records available on ● School Construction Authority milkshake restaurant, owned by Danny Youxin Hulian Information $260.0 Tiger Global Management (Manhattan), GCI Technology Co. Ltd./not Warburg Pincus (Manhattan) Public Access to Court Electronic Records. Seeks competitive sealed bids by 10:30 Meyer, has 11 existing locations in New disclosed Listings are in alphabetical order. a.m. on Oct. 22 for low-voltage fire- York City.The tenant was represented alarm and public-address systems. The by Matt Chmielecki and Andrew S. Selected deals announced for the week ended Sept. 11 involving companies in metro New York. ● Kemistry Entertainment Group SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing shares proposed range must be between Goldberg of CBRE. The landlord, of a company without the participation of a financial buyer. FB M&A: Financial buyer M&A 260 Flatbush Ave., Brooklyn $1,770,000 and $1,867,000. Bid Empire State Realty Trust, was represents a minority or majority acquisition of existing shares of a company with the participa- Filed for Chapter 11 bankruptcy documents require a nonrefundable fee represented in-house by Ryan Kass and tion of a financial buyer. GCI: Growth capital investment represents new money invested in a protection on Sept. 22. The filing cited of $100, payable by major credit card, Fred Posniak. The asking rent was $300 company for a minority stake. source: capitaliq estimated assets of $0 to $50,000 and certified check or money order to the per square foot.

30 | Crain’s New York Business | October 6, 2014 20141006-NEWS--0031-NAT-CCI-CN_-- 10/3/2014 6:47 PM Page 1

That’s because developers say they count on the higher income from Brain drain looms Living-wage fallout market-rate retail space at the base of an affordable-housing project to Continued from Page 4 For the city’s real estate industry, supplement the reduced-rent resi- Continued from Page 1 Arthur Cheliotes, president of the that additional expense by negotiat- the new mandate is just the latest dential units upstairs. based on “merit and fitness,”and,for Communications Workers Local ing to save on their rents. Despite setback under the de Blasio admin- many job classifications, that is de- 1180. Still, public-sector labor lead- lower land costs in poorer neighbor- istration.Carl Weisbrod,head of the Fewer amenities termined by scores on civil-service ers chafed because the provisional hoods, developers operate in these Department of City Planning, an- “A strong retail component can exams. In many cases, only the top workers lacked civil-service protec- areas with slimmer margins,making nounced that the city will require be a driver of value to a developer of three scorers are allowed to be inter- tions and were afraid to call out it more difficult for them to accept developers to include affordable an affordable development,” said viewed for a position. managers’ misdeeds, including con- those kinds of rent concessions. housing in residential towers that Bob Knakal, chairman of Massey tracting abuses, he said. That was certainly the case in 2009, are approved for taller construction. Knakal Realty Services. “The new Circumventing the system Unions also felt the Bloomberg when a living-wage mandate killed State Sen. Brad Hoylman proposed living-wage requirement will nega- The longstanding policy was de- administration was stifling the up- a deal by the Related Cos. to rede- signed to root out political patron- ward mobility of civil-service work- velop 575,000 square feet of the age. But former Mayor Michael ers by hiring provisional managers Kingsbridge Armory in the Bronx DEALBREAKER: Living-wage critics Bloomberg felt hamstrung by it be- rather than promoting from the into a retail mall. point to the Kingsbridge Armory as an cause the exam scores reflect knowl- lower ranks. example of how mandates for tenants By contrast, higher rents that can kill development projects. edge of agency procedures and oth- “It used to be that these kinds of landlords can command in upscale er arcane facts but not necessarily appointments came from the polit- settings like Madison Avenue or the work experience, managerial skills, ical clubs. [Then] they started com- Time Warner Center usually attract temperament and other qualities. ing from the country clubs,” wise- higher-end retailers whose margins The mayor therefore had his cracked Mr. Cheliotes, who chairs are bigger and, in some cases, who agencies circumvent the system by the civil-service committee for the already pay employees more. hiring “provisional” employees. By Municipal Labor Committee, an “This is a concern for develop- 2007, nearly 37,000 were swelling umbrella group for city unions. ment in the outer boroughs particu- the ranks of city government, occu- larly,”said Steven Polivy,chair of the pying more than 19% of the “com- Unions push city to act economic development and incen- petitive”city job titles that were sup- Labor interests, which had felt tives practice at law firm Akerman. posed to be filled based on exam that the Bloomberg administration “Developers will essentially have to scores. dragged its feet in complying with lower their retail rents to compen- “The civil-service system was a the court ruling, pressed the state sate for the rule, and that will essen- progressive reform to ensure good Legislature to accelerate the tially reduce the impact of the in- government—but that was 100 process. This year, two Brooklyn centives that were given to the years ago,” said Steve Malanga, a lawmakers, Republican state Sen.

project’s developers in the first buck ennis senior fellow at the Martin Golden and place.” Manhattan Institute. Democratic Assem- Mr. Polivy has helped arrange a pied-à-terre tax for luxury apart- tively impact the value of that retail “Now there’s far more ‘Civil service blyman Peter Ab- several high-profile development ments that includes a $370,000 sur- space.” sophisticated technol- bate, advanced bills deals in the outer boroughs that charge and 4% levy on properties The living-wage rule could also ogy and different types was a giving the city a dead- have benefited from city incentives, worth more than $25 million. And be especially onerous for retailers of positions. But you line, and after negoti- including the large City Point proj- late last week, City Councilman most needed in outer-borough may still want this kind progressive ations with the de ect in downtown Brooklyn. He said Dan Garodnick called for more neighborhoods, such as grocery of test for someone Blasio administra- developers in the bor- oversight and public disclo- stores, which often depend on pay- working in the Sanita- reform—100 tion,a deal was struck oughs often rely on breaks sures for the subsidies hand- ing low wages in order to afford be- tion Department. to give it until the end like real estate and sales- 4K ed out by the EDC, one of ing in new spaces. There are no easy years ago’ of 2016. (Labor tax abatements and elec- NUMBER OF the main providers of tax A store planned for Astoria, answers to this.” sources said the ad- tricity discounts handed WORKERS likely discounts and other breaks Queens, is a prime example. There, Mr. Bloomberg’s ministration, fearing to actually get a out by the city’s Econom- wage increase, to real estate developers and the Durst Organization last month work-around was dealt rapid turnover would ic Development Corp., not the 18,000 tenants. bought a $100 million stake in a a major blow by a 2007 disrupt agencies, the same ones that would predicted “I do applaud the may- huge residential complex along the court decision in a case pitting Long wanted much more time than it now require them to adopt or’s actions because livable waterfront. Beach, L.I., against CSEA, a labor got.) the new living-wage standard. wages have to be a part of the equa- A spokesman for the company union representing employees in the The bill also required the city to tion here in terms of what the pub- said there is now concern that the town. The court found it unlawful issue a new plan to achieve compli- Vital handouts lic gets for the subsidies that are giv- living-wage rule could upend the for municipalities in the state to re- ance. Gov. Andrew Cuomo signed “There’s a reason why these proj- en out,” Mr. Garodnick said. “We economics of a deal to have a tain provisional employees for more the bill into law in August. On Oct. ects have gotten these incentives,” need to at least have greater clarity 20,000- to 30,000-square-foot gro- than nine months. 8, the Department of Citywide Ad- Mr. Polivy said. “Without them, why this money is necessary. It can’t cery store as part of the project.That To be in substantial compliance ministrative Services is expected to they just won’t get built.” just be a gift.” store has been billed as a major with the ruling, New York City issue a plan on how the city will The $13.30-an-hour wage that But builders in low-income amenity for both the residents of the needed to slash the portion of com- comply with the court decision. the mayor’s executive order requires neighborhoods like East New York 2,400-unit development and for the petitive jobs held by provisional An agency deputy commission- for tenants in properties that receive in Brooklyn,where the mayor wants surrounding neighborhood.  workers to 5%—down to about er, Julianne Cho, declined to com- $1 million or more of these types of to encourage new affordable hous- 9,500. In 2008, the Bloomberg ad- ment until the plan is released. subsidies is expected to rise to more ing, say that the living-wage law LISTEN to a discussion at ministration developed a plan to cut The department is now headed CrainsNewYork.com/podcasts than $15 an hour by 2019. could hamstring that development. the provisional ranks to just 3,300 by a de Blasio appointee, Stacey within five years. But it fell well Cumberbatch.She and Ms.Cho are short: As of late last year, nearly both Bloomberg holdovers. voters who had never given to a po- 22,500 provisional employees were Labor leaders had grumbled that Public financing litical campaign. still on the payroll, according to a the Bloomberg administration did Advocates blame the way the pi- city report. not schedule enough civil-service lot program was created for its fail- exams and often tried to reclassify Continued from Page 6 a vested interest in its failure, but it ures, saying the bill was tucked into ‘As fast as they could’ provisional employees’ jobs to ex- to discourage unserious candidates also reflects the inability of the Re- the state’s fiscal 2015 budget, which “They went as fast as they reason- empt them from civil-service rules. from running, but low enough to be publican Party to be a viable oppo- was negotiated behind closed doors ably could,” argued one source close The de Blasio administration, attainable for major candidates. sition party in New York politics,” without input from experts. As to the process,alluding to the impact however, has been “vigorous” in giv- “If you have a candidate from one said Kenneth Sherrill, a professor such, many believe that Mr. An- that wholesale personnel changes ing civil-service exams, Mr. Che- of the major parties running for of- emeritus in Hunter College’s polit- tonacci, as the sole participant, was would have had on city operations. liotes said. Top scorers can fill jobs fice and they can’t reach that level, ical-science department. “A viable doomed to fail. Data released late last year show currently held by provisional em- that should tell you that maybe you party would not have had trouble “This ‘pilot program’ had as the Department of Education had ployees, some of whom have been need to rethink the thresholds, at finding the contributors necessary much a chance of taking off as the more than 4,000 provisional em- taking the tests in an effort to stay on. least for that office, in any future for one of its candidates to meet the Spruce Goose,” said Bill Mahoney,a ployees, while the Parks Depart- “The whole point is that you’re program,” Mr. Norden said. $200,000 requirement in small campaign finance expert at the New ment, Housing Authority, Human not supposed to just be able to hire But others attribute Mr. An- contributions.” York Public Research Interest Resources Administration and De- your buddy,” said Mr. Cheliotes. tonacci’s struggles to the Republi- Mr. Antonacci said he has Group, referring to Howard partment of Health and Mental “Now there will be an opportunity can Party’s diminishing brand in “begged, pleaded and cried on the Hughes’ill-fated aircraft.“The gov- Hygiene each had more than 1,000. to take the tests. And the general New York. shoulder of every [Republican] par- ernor still hasn’t enacted most of the Current provisional employees are public will have as much access to “Certainly New York state’s ty chairman” in the state, but has lit- campaign finance reforms he prom- being encouraged by their agencies the jobs as anyone else.” Ⅲ public financing law was the work tle to show for it. At the same time, ised in his first term, and he’ll need to take civil-service exams. of people who had no vested inter- he said he is proud of the donations to get serious about cleaning up Al- Many of these provisional em- LISTEN to a discussion at est in it and who may well have had he’s received, especially those from bany if he’s re-elected.” Ⅲ ployees are union members, said CrainsNewYork.com/podcasts

October 6, 2014 | Crain’s New York Business | 31 P032_CN_20141006.ps.qxp 10/3/2014 5:48 PM Page 1

Filling in the tech equation Doe Fund campaign

Continued from Page 3 Continued from Page 4 Mr. McDonald was handing out becoming entry-level Web devel- MEMBERS OF THE ACADEMY Brother’s Keeper,which the Obama sandwiches to the homeless in opers. administration started earlier this Grand Central Terminal 30 years “Close to 4,000 people came year, and initiatives started by for- ago, when one of his regulars—a APP ACADEMY In addition to an Ivy League-esque 5% through our doors in the past few mer Mayor Michael Bloomberg. homeless woman known as Mama acceptance rate, App Academy claims a 95% job- years to take immersive courses,” Class size: 20 Mr.McDonald himself used his un- Doe—died in the cold. After that, said Mr. Schwartz, whose company Class length: 12 weeks placement rate in positions paying an annual successful run for mayor last year to the former garment-industry exec- charges up to $11,500 for a three- Cost: $13,000 up front average of $90,000. The lab-style academy offers highlight the issue. utive decided to make improving month program similar to Flat- or 18% of your first-year students the opportunity to bet on themselves by Doe’s record has won praise. Ac- the lives of the homeless his full- iron’s.“In fact, we’re currently in the salary paying a percentage of their first-year salary as cording to a 2010 study by Harvard time occupation. process of tripling our capacity.” tuition. Students “pledge” to spend as many as University and Case Western Re- “I knew that homeless people Getting into some of these 100 hours per week learning skills for the tech job serve University,men who complete just wanted a hand up, not a hand- schools is itself a feat.Flatiron reports market. App Academy is revenue-based and has the Ready, Willing and Able pro- out,” said Mr. McDonald. a 10% applicant acceptance rate, not partnerships with private employers. gram,which can last from nine to 12 The Doe Fund’s methods have dissimilar to elite universities around months, are 30% less likely to be ar- attracted corporate admirers. In- the country.(Harvard’s applicant ac- BYTE ACADEMY A relatively new player, Byte Academy is focused rested. In the program, participants vestment firm State Street Corp.last ceptance rate is 6%, Princeton’s 7%.) Class size: 10-25 on fintech. Courses teach a mix of tech and must spend some time cleaning the year gave the Doe Fund $60,000,in- Flatiron’s 16-week program begins Class length: 12 weeks finance. Students are funneled into the high- streets before training for other jobs. cluding $10,000 for its initiative for with four weeks of “prework” assign- Cost: $10,000 paying Wall Street tech jobs that financial-services The program isn’t inexpensive, younger men.The Doe Fund’s work ments—80 to 120 hours of home- companies are struggling to fill. Students who take however. It costs $15,000 a person a to provide job training dovetails with work that must be completed before jobs at partner firms like Goldman Sachs and year, but that provides a social sav- State Street’s philanthropic interest students begin their 12-week course American Express within six months of graduating ings of 20% by eliminating costs in workforce development. of study that requires them to be in are entitled to partial refunds on tuition. such as incarceration. “The Doe Fund is about taking school from 9 a.m.to 6 p.m.Monday “I’m a fan of the program because people who are struggling and get- through Friday. DEV BOOTCAMP A genuine Silicon Valley institution, Dev it really looks at creating a work ting them ready to contribute to so- Class size: 16-20 Bootcamp is now operating in the Alley as well. ethic,” said Cheryl Wilkins, senior ciety,” said Barbara Wentzel, senior ‘Code ninjas’ Class length: 19 weeks Unlike other programs, the training is longer and program manager at the Center for vice president of the philanthropy The skills students learn are in- Cost: $12,200 has three separate stages. Dev Bootcamp is a Justice at Columbia University. committee at State Street. She said tended to be as marketable as possi- revenue-based operation and offers discounted “They are giving them an opportuni- that State Street was impressed by ble. Flatiron and App Academy, the tuition for women and minorities. ty to train for jobs that pay more than the effort to reach out to younger two most selective and intensive,fo- minimum wage.” men. “They are cus on the most widely used Web FLATIRON SCHOOL Flatiron prides itself on its program’s intensity, low Still, despite its helping them ac- development language, Ruby on success, the Doe quire the skills Class size: 20 acceptance rate (10%), high job-placement rate An opportunity Rails, which is necessary for entry- Fund has faced fi- they need to ma- Class length: 16 weeks level coding jobs. The schools also (98%) and a strong Silicon Alley alumni nancial problems. for homeless ture,” she said. give students groundwork in other Cost: $12,000 community. Flatiron, which has moved to the It has run a deficit coding languages so they can be- financial district, is a venture-backed operation that for each of its last people to train GED prep come versatile programmers known raised $5.5 million in a Series A round this April. two fiscal years, Mr. McDon- as “fullstack developers” or “code and its net assets for jobs that ald said the re- ninjas.” FULLSTACK ACADEMY Backed by Silicon Valley-based accelerator dwindled to $5.5 newed focus on Flatiron’s selectivity and grueling Class size: Varies program Y Combinator, Fullstack claims a 97% million for the pay more than younger men is an coursework mean its output of talent Class length: job-placement rate and works closely with many Y year ended June attempt to get is small. Since it launched in 2012, it 10-16 weeks Combinator-launched companies in the hiring 30, 2013, from $9 minimum wage them on the right has graduated approximately 60 stu- Cost: Up to $12,500 process. Fullstack, known for its “no a—holes” million a year ear- path now. Much dents a year in three batches of 20 admissions policy, checks egos at the door. lier. It also ran a of the younger students each. The small class sizes $3.5 million men’s program is increase the odds for job placement, GENERAL ASSEMBLY The biggest city-based player operates programs deficit in fiscal similar to that of one reason why the $12,000 tuition Class size: 20-25 across the country and is moving into Europe and 2013 after posting the older partici- hasn’t scared off potential students. Class length: 12 weeks Asia. It claims a 90% job-placement rate and has a $3.9 million deficit a year earlier. pants: They must clean the streets Graduates who get a job with one of Cost: Up to $11,500 been funded with $49.7 million in venture capital Mr. McDonald said that’s be- and learn a skill. But the younger the school’s hiring partners—almost since 2011. cause he invests donor funds in op- men work only three days a week in- all of which are in the five bor- erations, not his organization’s en- stead of five and spend the other oughs–also receive a $4,000 refund. HACKER SCHOOL Hacker School relies on partnerships to fund its dowment.“I’m running a nonprofit, two days taking classes they need, One of Flatiron’s recent success- Class size: 35 programs. Companies pay Hacker to identify and not a for-profit company,” he said. such as GED preparation, while es is Heat Seek NYC, a company Class length: 12 weeks train promising students, who receive a living In certain ways, though, the Doe still getting paid. They also must founded by Flatiron graduates that Cost: Free stipend. The admissions process is focused on Fund resembles a family business. undergo therapy as part of their won the two biggest awards at New the recruitment of women. Hacker School has Mr. McDonald started the organi- stint. “A lot of the older guys are York City’s Big Apps competition in raised $217,000 in venture capital since 2010. zation 29 years ago with his wife, looking for their second or third September. At the awards ceremo- Harriet, who is its executive vice chance,”said Mr.McDonald.“Let’s ny, one of its founders, wearing a president. His son John is its chief get them started right.” METIS Part of education giant Kaplan, Metis offers “boot Flatiron T-shirt, posed for pictures operating officer. Some nonprofit Doe Fund participants say they with Mayor Bill de Blasio, who has Class size: 15-20 camps” in a variety of coding languages. Metis management experts view the don’t know what they would do made supporting the development Class length: 12 weeks also works with a variety of hiring partners. arrangement as highly unorthodox, without the organization. Corey of a tech talent pipeline a priority in Cost: Up to $14,000 and the trio’s combined pay of more Faison, a 43-year-old who has been recent weeks. than $1 million is seen as a little too in and out of rehab and detox pro- NEW YORK CODE AND NYCDA has a much more open-door policy than generous by some. grams for his cocaine addiction, A city tech pipeline DESIGN ACADEMY its FiDi neighbor, the Flatiron School, and makes sought help in July as a “birthday Mr.de Blasio made two key hires Class size: 15-17 its revenue on a variety of classes that include Unusual, ‘but it works’ present to myself.” to his tech team last month. Miner- Class length: 12 weeks after-school programs for high-schoolers. Doe Fund Chairman Richard Mr. Faison now lives at the Doe va Tantoco became the city’s first Cost: $10,000 Schaps acknowledged the family Fund’s Harlem shelter and is work- chief technology officer,focusing on —THORNTON MCENERY ties at the top are odd. “Is it unusu- ing cleaning the streets. He is stick- policies that could support the tech al? Yes, but it works,” said Mr. ing with the program because he industry. He also brought on Ms. Schaps, who is chairman of Van will eventually learn a skill. Plus, it Titus, who will build on city initia- vate and publicly funded nonprofit, college tech programs and join the Wagner Communications. “These offers him a sense of structure in his tives like the Web Development intends on bridging the gender gap workforce. As more top-level engi- are highly accomplished people. If life without being stifling. Fellowship program.That effort has in the industry by educating more neers graduate from universities like they were entrepreneurs, they’d “I feel like they really have my allowed 56 New Yorkers to graduate than a million girls nationally and Cornell NYC Tech and become the make a lot of money, but they don’t back,” said Mr. Faison. “I feel like from the Flatiron School without putting them into the tech work- next generation of innovators and measure success that way.” they want me back in society.” paying full tuition. force by 2020. CEOs, the need for quality coders The NYC Tech Talent Pipeline “We are focusing on girls between will only get deeper. For code acad- CORRECTIONS is being built with input from peo- the ages of 10 and 16, getting them emy executives, that means training Accenture partners with IPsoft on the development of new technologies. Its relationship to IPsoft was ple like Mr.Schwartz and Ms.Titus’ hooked early and preparing them for more ninjas will be very good busi- misstated in the Sept. 29 “Looking smart.” old boss, Girls Who Code founder the future,” Ms. Saujani said. ness. Spaceworks kicked off work on a $650,000 renovation of the top floor of the Williamsburg branch of and CEO Reshma Saujani,a former The code academies fill the tal- LISTEN the Brooklyn Public Library. When completed, that space will house four artists’ studios and two deputy public advocate under Mr. ent niche in a system waiting for to a discussion at rehearsal studios. Some 218 visual artists applied to participate in the lottery for three available spots. de Blasio. Girls Who Code, a pri- high-school students to complete CrainsNewYork.com/podcasts This information was misstated in the Sept. 29 “Spaceworks makes room for creatives.”

32 | Crain’s New York Business | October 6, 2014 20141006-NEWS--0033-NAT-CCI-CN_-- 10/3/2014 2:26 PM Page 1

HELLUVA TOWN INSIDE Source Lunch Putting Concierges the mayor’s agenda into have their say action PAGE 34 When the city’s hotel concierges Out and About are asked for recommendations to a show or restaurant, chances are A Mad Man talks about their guests will be referred to one women PAGE 35 of the 15 winners of the annual Concierge Choice Awards. In September, nearly 200 concierges cast their votes in categories including the top tourist attraction (the Intrepid Sea, Air & NEW YORK STATE OF MIND: Shawn McLearen, Artspace’s VP for property development, said the Minneapolis-based company had to adapt to local idiosyncracies during its refurbishment of PS109. newscom

Space Museum), the most elegant restaurant (Le Perigord) and the best Broadway show (Beautiful). Guests’ reviews are a critical factor in the process, said Frederick Bigler, co-founder of the awards and concierge of the Peninsula New York Hotel. Le Perigord is hardly the sexiest eatery in town—in fact, it’s celebrating its 50th year—“but when we send our guests there they come back raving about the service,” Mr. Bigler added.The French restaurant beat out nominees Le Bernardin, Casa Lever, the Lambs Club and Tocqueville. For the Broadway prize, even Sting was lobbying the group to put his upcoming musical, The Last Ship, on top next year. He performed at the awards ceremony held at the Loeb Boathouse. Go to conciergechoiceawards.com to see all the winners. —lisa fickenscher CBGB 2.0

The third annual CBGB Music & Film Festival will take over 35 venues across Manhattan and Brooklyn from Oct. 8 to 12, A home for creativity

gina levay Shuttered East Harlem school converts to a living and working featuring some 200 artists, including ’80s rockers Devo and Jane’s Addiction performing a free space for artists as a hedge against gentrification concert in Times Square.

Tim Hayes, a co-owner of the buck ennis CBGB brand and one of the festival’s organizers, said his team BY THERESA AGOVINO LONG ODDS bought the rights to CBGB in 2011, “recognizing that this is an iconic name and symbol.” etting past the notoriously selective co-op boards at fabled buildings like He added that his company is 740 Park Ave. or the Dakota appears to be a breeze when compared with “investing in the future of CBGB, trying to expand the audience and nabbing a home at El Barrio’s Artspace PS109 in East Harlem. ¶ Some introduce it to a new generation.” 53,000 people applied for one of the 90 apartments in the decommissioned NUMBER90 OF He hopes to take the festival to school, which is in the last stages of being converted to affordable housing Japan and is on the hunt for space APARTMENTS available to open a new CBGB on the for artists. Less than 0.2% of them will secure a space.That ratio puts the at Artspace PS109 Lower East Side, featuring some acceptance rates at snobby co-ops to shame. ¶ The chosen few are slated to of the famed interior of the old Bowery haunt, which closed in begin moving into the grand, Gothic-style 116-year-old building on East 2006. And in each quarter of 2015, 99th Street by the end of the year, when the two-year, $52 million renovation is completed. It’s starting in the spring, he hopes to launch something new: for been a long time coming.The school was mothballed in the mid-1990s because of its deteriorating example, a rock-inspired fashion Gphysical condition and low student enrollment, but local leaders say it’s been worth the wait. ¶ line, a microdistillery and a label “Artists are always the first to go as gentrification takes hold,” said Gustavo Rosado, executive NUMBER53K OF allowing artists to record using all of the original CBGB sound director of El Barrio Operation Fightback, a housing nonprofit that’s developing the building with APPLICATIONS for those equipment. —jessica kramer Minneapolis-based Artspace Projects. See ARTISTS on Page 34 apartments

October 6, 2014 | Crain’s New York Business | 33 20141006-NEWS--0034-NAT-CCI-CN_-- 10/3/2014 2:26 PM Page 1

OLD SCHOOL: PS109 is a 116- SOURCE year-old, Gothic- style building. LUNCH: Interview by Chris Bragg JULIE MENIN New Consumer Affairs chief oversees mayor’s mandates

n April, Mayor Bill de Blasio a small business would say,“What is sumer-protection issue, to please appointed Julie Menin com- the inspector looking for?” They call 311 or contact us directly. But missioner of the city’s De- were told, “Well, go and read the we also monitor issues where we

buck ennis partment of Consumer Af- rules online.” But that’s not practi- feel there needs to be aggressive en- fairs, the agency that will cal, or fair. So we have posted an in- forcement. There’s not always go- Ioversee the mayor’s paid-sick-day spector checklist online, so people ing to be consumer complaints on law and expanded living-wage re- can be very clear what it is the in- an issue where there needs to be an Artists’ residence quirements, among other mandates spector is looking for. investigation. So we really try to that businesses find burdensome. And we’re using look holistically. an online mapping WHERE Continued from Page 33 The former school also provides sev- How is paid-sick-leave enforcement tool. It gives us im- A group representing process “This was an opportunity to main- eral shared community areas that can going? mediate data to know THEY servers sued your agency. It tain our artists.” be used for meetings, performances We’ve had 220 complaints that when one neighbor- DINED feels it’s being overregulated. The community had feared the and exhibitions, relieving the organ- have come in since July 30.The ma- hood is being overin- The lawsuit against the fortress-like, five-story building izations of the cost of maintaining jority are from workers who have spected, another un- ADRIENNE’S agency was dismissed. And PIZZA with terra-cotta adornments would their own facilities. not been given the notice about paid derinspected. We 54 Stone St. there clearly was a com- be reborn as an expensive condo “We knew we had to maximize sick leave—often,the employer was have a new legal om- (212) 248-3838 pelling reason why the project to match the other luxury de- space,” said Mr. McLearen. “We not aware. We’ve been able to me- budsman whose sole adriennespizzabar agency had to step in. People velopments and pricey restaurants knew we had to lower overhead.” diate 100% of those complaints function, all day long, nyc.com were saying they weren’t and shops creeping into East Individual residents will benefit [without issuing fines]. We had a is to answer questions AMBIENCE: serving papers—and the Harlem. But local leaders not only from a design that uses the building’s couple of “retaliation” complaints, on our rules. Wall Street-heavy process servers said they demanded affordability, they also high ceilings to create loft storage and again, in those instances, we’ve crowd, with a were serving the papers. sought a project that would help pre- spaces that will be especially useful been able to step in and mediate. Instead of these fines, large outdoor where should Consumer area on Stone There’s a City Council bill under serve the neighborhood’s cultural for artists’ tools. Apartments in the Street heritage, which includes being a building range from $494 a month Are the regulations posted? Affairs be focusing which Consumer Affairs would trailblazer of salsa music. for a studio to $1,022 for a two- They are all on our website. We also enforcement? WHAT THEY ATE: regulate the car-wash industry. “Artists help build the spiritual, bedroom, depending on the resi- adopted and implemented an online Where there are Ⅲ One “Old Are consumers not happy with political and cultural essence of a dent’s income. Half the apartments application tool for small businesses, health, safety, fraud Fashioned” pizza car washes? neighborhood,” said poet and writer are earmarked for locals. where they can track an employee’s and abuse scams— Ⅲ Water On the car-wash bill,if juris- Jesús Papoleto Melendez, who has accrual time—it’s not required, but that is where we’re go- diction is given to the De- ‘Anchors’ of the community PRICE: applied for a one-bedroom. it’s helpful and very easy to use. ing to be aggressive. $27, including tip partment of Consumer Af- Mr. Melendez, who was raised in The developers are working with For example, the sale fairs, I imagine we’d start East Harlem and now resides on HPD to ensure residents meet the What have you been doing to cut small- of tobacco to minors—we have un- seeing a lot more interaction from East 111th Street, said the rent on income criteria. “The building is business fines? dercover teenagers who go out and the public. We believe this car- his dream apartment would be about such an asset for the community,” In July the Department of Con- try to purchase tobacco. The sale of wash bill has protections all the way $500, or about $225 less than he’s said HPD Commissioner Vicki sumer Affairs announced 24 re- expired medication—we are going around, both for employees of car paying now. The 64-year-old said Been. “Artists really anchor a com- forms that will mean an approxi- to step in and aggressively enforce washes and consumers—and the the savings would be a huge benefit munity.” mately $5 million reduction in the that.We recently issued 200 subpoe- car-wash owners. For those engag- because his income is “like a roller- HPD isn’t playing a role in choos- upcoming fiscal year.That’s going to nas to the used-car industry because ing in any kind of bad conduct,they coaster ride” that’s dependent on ing who should be considered an go back into the pockets of business we believe very strongly that they are are undercutting the good actors. grants and teaching gigs—even sell- artist. That is left to a panel of up to owners to hire more employees. selling recalled cars—there’s a loop- ing books from the trunk of a car. six people that includes at least one hole in the federal law.We are doing Has the City Council under Melissa It is a tale that both Operation Artspace employee, as well as local What are the reforms? a very aggressive investigation of Mark-Viverito been sensitive to Fightback and Artspace have heard artists and representatives from arts We’re giving small businesses,for al- employment agencies,which we be- business owners’ needs so far? before. Artspace has been develop- organizations, who will ask prospec- most all signage violations, the op- lieve are engaging in predatory and Absolutely. The expansion of the ing affordable housing for artists tive tenants about their commitment portunity to cure violations first. deceptive practices. paid-sick-leave law, you really saw throughout the country since 1979. to their craft and their feeling about We’ve also reduced the fine amounts that in the number of employers It has become expert at using a wide living among others working in the in many categories. As someone How do you decide where to focus? covered—there was really a bal- array of tools to finance projects. cultural sphere. who dealt with DCA in the past, in We obviously are extremely ance. And you see that with the Tax credits from New York City’s “We are not judging the quality of small-business life, many times a complaint-driven.I always encour- mayor’s commitment to reducing Department of Housing Preserva- the art,” Mr. McLearen said. Yet, he DCA inspector would come in, and age people, if they’ve had a con- fines on small businesses. Ⅲ tion and Development (HPD), the added, there is no easily defined for- National Park Service and the New mula for selection.“At the end of the York State Historic Preservation day, it is a human thing,” he said. PLAY/LIST People, places and things that make Julie Menin tick Office helped fund the conversion of Selection is done on a rolling ba- PS109. There were also a variety of sis, so those whose applications are ATHLETE’S FOOT: Ms. KINDRED SPIRITS: Menin started off as 2013, and finished private and public grants from insti- evaluated first may have a better shot Menin used to be an Ms. Menin has three a consumer- fourth with 17% of tutions such as the city’s Department at an apartment. avid runner, but tore sons: an 11-year-old protection lawyer, but the vote. She’s not of Cultural Affairs, the Manhattan Interviews have begun,and much her Achilles tendon a and 9-year-old twins. later opened a looking to run again borough president’s office and the like those waiting to hear if they’ll be week before her new “When I witness my restaurant and soon. “I love being in Ford Foundation. granted the privilege of shelling out twins together, catering business in this administration,” millions of dollars for a co-op, it’s just magical lower Manhattan she said. “To me, this Shared spaces would-be renters are anxious about to see. They bloomberg news called Vine, now is the perfect job.” Still,this is Artspace’s first project their chances. understand in New York City, and its vice presi- Mr. Melendez said the upside of and French author home to each other dent for property development, moving into the building extends be- and critic of Bobby Van’s. Shawn McLearen, said that meant yond reasonable rent. It also repre- almost like no totalitarianism, partly adapting to some of the local idiosyn- sents an opportunity to meet more one else does.” because her mother POST- crasies. PS109 was configured with artists, and, with luck, forge collabo- job began. “So, if you was a Holocaust POLITICS: Ms. the high price of real estate in mind. rations. had met me two INSPIRATIONAL survivor who grew up Menin ran for For example, the building offers “I really hope I get it,” said Mr. months ago, I was in AUTHOR: She loves in Budapest. Manhattan space for nonprofit offices, but they Melendez. “It would really change one of those big Milan Kundera borough

is relatively small, to keep rents low. my life.” Ⅲ istockphoto boots.” (pictured), the Czech EARLY CAREER: Ms. president in

34 | Crain’s New York Business | October 6, 2014 20141006-NEWS--0035-NAT-CCI-CN_-- 10/3/2014 2:27 PM Page 1

OUT AND SNAPS Benefit raises funds for Iraq, Afghanistan veterans ABOUT by Jessica Kramer

CULTURE FIX CAREER BUILDER TUESDAY, OCTOBER 14 THURSDAY, OCTOBER 16 At Madison Square Garden, the NHL Silicon Harlem presents its TECHNOLOGY Eastern Conference champion NEW CONFERENCE, billed as “the first-ever YORK RANGERS host their archrivals, the tech conference in Harlem,” aiming to New York Islanders—playing their last transform the community through year in Nassau County before moving to technology and innovation. Longtime Brooklyn—in the teams’ first head-to- Democratic Rep. Charles Rangel is a head matchup of the 2014-2015 hockey featured speaker. The conference takes season. Ticket prices vary, and can be place at 7:30 a.m. at My Image Studios, purchased at thegarden.com. 40 W. 116th St. Tickets are $150 and can be purchased at event.silicon SUNDAY, OCTOBER 19 harlem.net. sarah merian sarah Get juiced on the Lower East Side. mccarthy/gettyjamie images Everybody’s favorite gherkin party is FRIDAY, OCTOBER 17, FAREED ZAKARIA and ALI VELSHI at Pratham’s JOANNE TUCKER, ADAM DRIVER, ZACH ISCOL and MEREDITH MELLING at the back for LES AND SATURDAY, OCTOBER 18 annual NYC Gala. The Sept. 18 fete raised more than Headstrong Project’s Words of War Benefit. The Oct. 1 event raised more than $400,000 $2 million for the India-based education nonprofit. PICKLE DAY, NYU Polytechnic School of for comprehensive mental-health care for veterans of the Iraq and Afghanistan wars. featuring Engineering presents CAREER DISCOVERY more than 20 IN CYBER SECURITY: A WOMEN’S producers, as SYMPOSIUM. The two-day conference is well as local aimed at women interested in making a food and shift to the computer-security field, and

fashion ethan ries features some of the nation’s leading vendors, female security professionals, including activities, games, live music, DJs and a IBM’s chief information security officer home-pickling contest. The free fair and McAfee’s senior vice president in takes place from noon to 5 p.m. on charge of endpoint protection. It takes Orchard Street between East Houston place at 6 MetroTech Center, Brooklyn. and Delancey streets. For more Tickets are $75 and can be purchased at information, visit pickleday.nyc. cybersymposium.isis.poly.edu.

DON’T MISS MAD MAN

FRIDAY, OCTOBER 17 photography wallace bob

The new French reading room and bookstore MILO E. RIVERSO, MALCOLM WILLIAMS, AMY WINCKO and RICHARD GARLOCK at buck ennis at the French Embassy hosts a week’s worth of the ACE Mentor Program of Greater New York’s Fall Cocktail Reception. The Sept. 17 MARK WAGAR and STEPHEN BERGER at Crain’s free events, and a chat with Mad Men creator gala raised more than $140,000 to benefit high-school students interested in pursuing Health Care Summit. The Oct. 1 conference addressed MATTHEW WEINER is a highlight. Music careers in the building industry. the transformation of New York’s health care industry. journalist Greil Marcus moderates the conversation with Mr. Weiner and Alexandra Clert, co-creator of French television series See more of this week’s Snaps online at CrainsNewYork.com/galleries. Engrenages (Spiral), for an exploration of how women are portrayed in the workplace in popular culture. The event takes place at 7 p.m. at Albertine, 972 Fifth Ave. For more information, visit albertine.com.

OPENING FUNDRAISERS WEDNESDAY, OCTOBER 15, WEDNESDAY, OCTOBER 15 THROUGH SUNDAY, FEBRUARY 15, 2015 The LUNGevity Foundation The Museum of the City of New York presents its CELEBRATION OF HOPE presents JEFF CHIEN-HSING LIAO’S NEW GALA to raise support for lung- YORK: ASSEMBLED REALITIES. The exhibit cancer research. The party kicks off features more than 40 works from the at 6:30 p.m. with a cocktail hour Taiwanese artist turned New Yorker. Mr. and will be followed by dinner, a Liao creates large-scale panoramas and brief award presentation, composite photographs of such iconic New entertainment and an after-party. York locales as the Grand Concourse, The event will be held at the Pierre Coney Island, the late Shea Stadium and Hotel, 2 E. 61st St. Tickets start at the 72nd Street subway station. The $750 and can be purchased at museum, at 1220 Fifth Ave., is open seven nygala.lungevity.org. days a week from 10 a.m. to 6 p.m. There is a suggested $10 admission fee for adults. THURSDAY, OCTOBER 16 For more information, visit mcny.org. The ASPCA’S ANNUAL YOUNG FRIENDS BENEFIT features cocktails, hors d’oeuvres, music, a silent auction and special appearances by some adoptable animals. The fete starts at 7:30 p.m. at the IAC Building, 555 W. 18th St. Tickets start at $160 and can be purchased

jeff chien-hsing liao at aspca.org.

MARK YOUR CALENDAR…

SATURDAY, NOVEMBER 29 FOR A POST-TURKEY BREAK, check out ARLO GUTHRIE’S ANNUAL THANKSGIVING CONCERT. The folk singer and son of Woody offers a performance that is now a New York City tradition and features the perennial holiday favorite, “Alice’s Restaurant.” The show starts at 8 p.m. at Carnegie Hall, 881 Seventh Ave. Tickets can be purchased at

carnegiehall.org. hall rainy

October 6, 2014 | Crain’s New York Business | 35 November 17-18 Pier Sixty, NYC

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