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Donna Clower NY Firms Chasing Acquired by News Corp nb23p01.qxp 6/1/2007 7:42 PM Page 1 TOP STORIES RETAIL Cosmetics firms REPORT look to boost sales Local chains thrive with lines of skin- even as national whitening products stores invade PAGE 2 ® PAGE 19 Shadows at the track: the hard lives of workers VOL. XXIII, NO. 23 WWW.NEWYORKBUSINESS.COM JUNE 4-10, 2007 PRICE: $3.00 at Belmont PAGE 3 INSPIRED MOVES: Indie label founder Mike Muse, shown at Albany may Crain’s supports Electric Lady Studios, mayor’s plan for says that “the music space is wide-open congestion pricing to anyone.” move on EDITORIAL, PAGE 12 New tune for radio: It’s time for country big issues music station VALERIE BLOCK, PAGE 13 Measures stymied ON THE AGENDA Improved voting for years now front machines won’t be WICKS LAW After 86 years, ready for 2008; and center in final major overhaul may be at hand weeks of Legislature ARTICLE X Rules for siting Farrell for speaker? power plants are sparking THE INSIDER, PAGE 14 discontent BY ERIK ENGQUIST CAMPAIGN FINANCE Last-minute deal is possible BUSINESS LIVES with less than three weeks re- maining in the legislative session, CONGESTION PRICING No lawmakers are plowing through a quick fix on plan to charge slew of thorny proposals and could vehicular fees in Manhattan reach compromises on measures that have been ensnared in Albany gridlock for years. innocent inmates. But disagree- Atop the list:reforming the out- ment remains on those issues as dated Wicks Law governing pub- well as the more contentious ones. WILD ABOUT HARRY lic construction, crafting new rules Albany leaders express opti- Adults obsessed with for power plant projects, changing mism, but the jury remains out on campaign finance regulations and whether Eliot Spitzer—in his Harry Potter ponder buck ennis the last book PAGE 31 approving a city proposal to charge sixth month as governor—has HITMAKERS driving fees in Manhattan. ushered in an era of progress. “It’s Last week, legislators built mo- been a better process,” says Demo- mentum by advancing feel-good cratic Assemblyman Joseph Len- AT DEADLINE bills to keep violent video games tol, a 35-year veteran from Brook- away from children, make school lyn. “But results will tell the story.” FOTOLOG.COM, A PHOTO- Music biz faces food more healthful and increase Aiding the process are newly RELATED SOCIAL NETWORKING DNA use to catch criminals and free See BIG ISSUES on Page 8 Web site, has retained investment bank UBS to explore a possible sale, says a new realities source close to the company. Last week, similar sites were Execs focus on ring MORE MUSIC Donna Clower NY firms chasing acquired by News Corp. and moves up at Sony BMG Page 33 CBS.The Manhattan-based tones, ads to make Fotolog, which has raised $11 million from investors since it up for falling CD case the unreleased songs fit with Persian Gulf riches was founded in 2002, has 8 sales; new deals an advertiser’s youth-marketing million members and attracts plans. Late this month, Qatar Air- 100 million daily page views. His thoughts often wander to Airlines ramp up ways will debut direct service be- Fotolog declined to comment. BY SAMANTHA MARSHALL other ways he can put the music to flights as lawyers, tween Newark Liberty Interna- use. tional and Doha International THE UNION REPRESENTING DOW when mark pitts goes into a “These days, I find myself builders head east in Qatar’s capital. The airline will JONES EMPLOYEES continues to recording studio, he has a lot more thinking, ‘That record’s hot, but I join two others already offering lobby for the Bancroft family on his mind than coming up with don’t know if the hook will work direct flights from the New York to reject Rupert Murdoch’s a hit song. The president of urban for a ring tone,’ ” he says. “It’s very BY HILARY POTKEWITZ area to the Gulf, including Emi- $60-a-share offer for the music at the Zomba Label Group, frustrating.” rates Airlines, which has been company, but whatever a division of Sony BMG Music Mr. Pitts is one of many label when new york lawyers, bankers packing three jumbo jets each day influence the union has Entertainment, wonders how executives facing up to the new re- and builders talk about fly- on flights from John F. appears to be waning. “I’m companies like AOL, Kmart and alities of the music business. With ing back and forth to the Kennedy International to See AT DEADLINE on Page 2 Verizon will respond to the music. industrywide CD sales plunging Gulf states these days, $19B Dubai International. He’s sure to record extra tracks in 20% in the first quarter and digital they’re not talking about VALUE “The Gulf region is very of Gulf area sales failing to make up the differ- Louisiana, Alabama and construction high in importance for us,” ence, companies are scrambling to Mississippi. They’re talk- says Mark Palmer, a partner 23 projects announced 5 do deals that will generate rev- ing about Abu Dhabi, at former Mayor Rudy Giu- enues beyond traditional recorded Dubai and Qatar: Persian in 2006-2007 liani’s law firm,Bracewell & music sales. Gulf states whose vast oil Giuliani, which opened an ELECTRONIC EDITION Executives are angling to get a wealth has transformed them into office in Dubai in April. cut of the proceeds for everything markets as important to many The Gulf is in the midst of a See MUSIC BIZ on Page 8firms as China is. See NY FIRMS on Page 8 NEWSPAPER 71486 01068 0 CNYB 06-04-07 A 2 6/1/2007 6:53 PM Page 1 AT DEADLINE Snag over Hudson Yards Continued from Page 1 request of City Council Speaker hoping that what’s going on Christine Quinn and Coun- right now is that some of the cilman Robert Jackson, D- family members are doing their Harlem, says a department Council speaker due diligence,” says Steve Yount, spokeswoman.The delay is the seeks guarantees president of Local 1096 of the latest in a series of controversies International Association of that have dogged the project. on public facilities, Publishing Employees. Experts The university wants to rezone affordable housing say that a deciding factor in several city blocks near the swaying the family toward News Hudson River to create a Corp. is the prospect of an satellite campus. BY JULIE SATOW increasingly competitive climate for business news following the MANHATTAN WILL GAIN 50-PLUS city council speaker Christine expected merger of Reuters HOTELS and 8,000 rooms over Quinn is delaying a proposal to de- Group and Thomson Corp. the next three years, according velop the valuable Hudson Yards rail to a study set to be released yards, demanding new public facili- THE DAHESH MUSEUM OF ART IS today by consulting firm HVS ties and guarantees on affordable CLOSING its four-year-old lo- International.The increase is housing. cation at 580 Madison Ave. at the largest ever, according to the The speaker, whose district in- bloomberg news the end of the summer and may study, commissioned by NYU’s cludes the Metropolitan Trans- VALUABLE PROPERTY: The rail yard is the last major developable area in Manhattan. move out of the city.The Preston Robert Tisch Center for portation Authority property,wants museum, which exhibits work Hospitality,Tourism and Sports a request for proposals to require de- of 19th- and 20th-century Management.The city will have velopers to build a cultural center to build on the site. Companies and Tishman Speyer European artists, has narrowed 72,000 rooms by 2009. and school. She also wants guar- Ms. Quinn could not be reached Properties.The development,which its search for a new home to antees that 20% of residential units for comment. A spokesman for Mr. will be built atop a platform con- three locations—one in lower CLOTHIER STEVE & BARRY’S IS be affordable and remain that way Doctoroff declined to comment, structed over the rail yards, is ex- Manhattan and two outside of USING ITS NEW PARTNERSHIP permanently. citing the negotiations. pected to cost more than $10 billion New York.The midtown with Sarah Jessica Parker to In a nod toward envi- Hudson Yards, a 26-acre and include 12.4 million square feet location attracted 140,000 enter the women’s wear business ronmental advocates, Ms. 4,500 swath on the West Side, is of office,retail and residential space. visitors a year, but a museum and change the budget chain’s Quinn is also insisting that HOUSING the last major developable Ms. Quinn has an important UNITS that will spokeswoman says renting has college-sweatshirt image. the 13-acre site have only be created in area in tightly packed Man- voice in the development of the rail become too costly. Bitten, Ms. Parker’s line of 400 parking spots, which Hudson Yards hattan. The western and yards.The western rail yards must be clothing and accessories, hits would have to service the development eastern rail yards—bounded rezoned to allow for commercial and THE DEPARTMENT OF CITY Steve & Barry’s stores on 4,500 apartments that can be by 10th and 12th avenues residential development, which PLANNING ON FRIDAY post- Thursday. In preparation, the built there. and West 30th and West 33rd means the developer will have to poned a review of Columbia Port Washington, L.I.-based Deputy Mayor Daniel Docto- streets—make up half of the area. win City Council approval under University’s plan to develop a retailer is changing its roff is mediating talks between Several developers are contend- the city review process known as 17-acre campus in West employees’ uniforms to polo Ms.
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