Times Sq. Businesses All Shook Up

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INSIDE REPORT TOP STORIES SMALL BUSINESS TBS to trot out Why your health care Conan for annual bill just soared 40% dog and pony show ® PAGE 13 PAGE 2 Foul play: protests over selling foie gras VOL. XXVI, NO. 19 WWW.CRAINSNEWYORK.COM MAY 10-16, 2010 PRICE: $3.00 PAGE 2 Trinity seeks Times Sq. businesses all shook up successor for the Bomb scares, evacuations keeping owners man who on edge—and spending more on security revived vendor who opened fire on police three city districts BY LISA FICKENSCHER officers with an automatic weapon was killed in the middle of a crowd PAGE 3 the attempted car bombing inci- of holiday shoppers. And just this dent on West 45th Street is just the past Friday, an abandoned cooler NY Stock Exchange latest crisis that businesses located in and a shopping bag prompted the has a Europroblem Times Square have had to contend evacuation of several streets and with over the past several months. bomb investigations. IN THE MARKETS, PAGE 4 In April, an Easter melee in- The rising tensions have area volved gangs of violent teenagers business owners on edge. Gentrifi-

In Albany, at least who shot four people—33 were ar- cation has pushed out the prosti- landov 91 ways to punish rested. In early December, a street See TIMES SQUARE on Page 25 BLOCKADED: The NYPD shut down Times Square after defusing a smoking car bomb. big bad Wall Street OPINION, PAGE 11 Feds wring BUSINESS LIVES Spongetech chief exec NYCTea-Off Alleged ‘mini-Madoff’ Exasperated and ebullient, local Tea Partiers charged with fraud: fake orders, buyers organize to fight Big Apple’s liberal machine my country too much.” GOTHAM GIGS BY AARON ELSTEIN BY JEREMY SMERD Instead of heading south to drink piña co- His tanks give the city’s ladas in Puerto Plata, he joined Tea Party 365 skyline character P. 27 last week, the law caught up with wave chan, the son of Chinese immigrants, Inc. in Manhattan. Now he’s organizing rallies G ANNE FISHER sings the Michael Metter, a purveyor of kitchen didn’t recognize his country. The bank bailout and recruiting other volunteers from his two- praises of barter P. 27 sponges and stinky stocks with a long incensed him; health care reform sent him over bedroom apartment on the Lower East Side. history of evading angry creditors and the edge. “President Obama says if you want to repeal G MOVERS & SHAKERS clients. “I was going to renounce my American citi- this [health care] bill, bring it on,” Mr. Chan, a Jim Ryan will tune up In a criminal complaint, federal zenship and move down to the Dominican Re- real estate salesman, says.“Well, we the Tea Par- P. 28 Fresh 102.7 FM prosecutors charged the CEO of public,”says Mr.Chan,42.“But screw that;I love See NEW YORK CITY on Page 25 G GAEL GREENE dashes to Spongetech Delivery Systems Inc., a chef Huynh’s latest tiny Manhattan company that was NOT YOUR GREAT-GREAT-GREAT-GRANDFATHER’S eatery,DOB 111 P. 31 once a big advertiser at such places as TEA PARTY: The Manhattan and Staten Island groups Citi Field, Yankee Stadium and Madi- reflect the city’s diversity. son Square Garden, with conspiracy to commit fraud and obstruction of jus- INDEX tice.The feds allege no fewer than 99% of Spongetech’s purported sales were THE INSIDER ______8 fake and Mr. Metter pocketed millions NEIGHBORHOOD JOURNAL ______9 in illegal gains by pumping his compa-

VIEWPOINT ______10 ny’s stock price.He then sold billions of

REAL ESTATE DEALS PLUS ______12 near-worthless shares to gullible investors. If convicted, the 58-year-old CLASSIFIEDS ______22 faces up to five years in prison. FOR THE RECORD ______24 Mr. Metter is intimately familiar EXECUTIVE MOVES ______27 with courthouses.He has been sued re- THE WEEK ON THE WEB ______30 peatedly over the years, instigated liti-

THE WEEK AHEAD ______31 gation of his own and declared person- See FEDS WRING on Page 26 19 5

ELECTRONIC EDITION buck ennis 71486 01068 0 20100510-NEWS--0002-NAT-CCI-CN_-- 5/7/2010 8:24 PM Page 1

IN BRIEF Chasing the grail: ad rate NEW YORK STATE’S PUBLIC PENSION FUND WON A $624 MILLION CLASS-ACTION SETTLEMENT with Countrywide Financial Corp., pending approval by a California federal judge.The parity with broadcast TV state’s $129 billion Common Retirement Fund and five city pension funds led a class-action lawsuit that accused the mortgage lender of Cable guys argue their to $8.7 billion, and 22% for cable, to $8.2 misstatements and omissions about its home- billion, according to a recent report by loans business. According to the settlement, shows are just as good as Credit Suisse. Countrywide—now owned by Bank of America—will pay $600 million, and the networks’—and deserve Broadcast ad rates are double lender’s auditor, KPMG, agreed to pay $24 some love at upfront broadcasters have lots to brag about million, the city’s Law Department reported. too, with breakout hits like Glee Countrywide denied any wrongdoing. on Fox, and NCIS: Los Angeles BY MATTHEW FLAMM on CBS.But the main reason AWARD-WINNING RESTAURATEUR MARCUS that broadcast will have a SAMUELSSON IS OPENING HIS NEXT EATERY IN the conan o’brien national live comedy bigger payday is because it Harlem. He recently signed a 15-year deal at tour has added a stop. The red-haired for- sells more inventory in 310 Lenox Ave., between West 125th and West mer Tonight Show host,who moves to TBS the upfront market 126th streets.The former executive chef at in the fall, will appear next week at Turner than cable does— Scandinavian restaurant Aquavit and Top Chef Entertainment’s upfront presentation— and because the ad Masters is planning a café and bar on the the dog and pony show where networks rates for its prime- ground level, and jazz and fine dining pitch advertisers on their new lineups time shows are tra- downstairs. “It’ll be American fare, but it will and set the mood for negotiations. ditionally double draw upon his diversity of experiences and Turner is hoping he kills. that of cable’s. training,” said Derek Fleming, a director for Even those broadcast and cable NEW FACES OF CABLE: Cable executives Mr. Samuelsson. executives who don’t have a hot Oprah Winfrey, Conan say the gap has closed for comic at their upfront shows O’Brien and Burn Notice sports programming, and A SMALL DOCUMENTARY THAT JUST OPENED IN are looking forward to a better is down to between 10% THEATERS HAS AN UNUSUALLY LARGE than usual sales period.Adver- and 30% for original marketing campaign behind it. Babies—a tisers are expected to increase And in addition to shows like Burn Notice documentary directed by French filmmaker spending on next season’s Mr. O’Brien, TBS and The Closer. Observers Thomas Balmes that follows the first year of schedules by can boast a partner- say it won’t be long before life for infants in Mongolia, Namibia, San more than 20% ship with CBS to that gap closes too. Francisco and Tokyo—is opening in 534 over last year. carry the National “TNT, USA, Bravo, theaters across the country, a big release for a Some of the top Collegiate Athletic As- FX, History—these net- specialty film, especially a documentary. Similar cable networks are also sociation men’s basket- works are increasingly films typically start their run at one or two hoping to take advantage of the ball tournament next competitive with broad- theaters in New York and Los Angeles. upswing and finally convince year. cast,and in some instances advertisers that their big new “We are getting to are delivering more demo- shows are just as good as the the point now where media graphically appealing audi- BY THE NUMBERS broadcast networks’—and de- buyers will end up buying ences,” says media economist serve to be priced the same. television—not ‘cable’ or Jack Myers, publisher of Jack

Weekly shift of the city’s economy Closing the gap in ad rates TV ADVERTISING ‘broadcast,’” says David Levy, Myers’ Media Business Report.

for marquee shows has long president of ad sales at Turn- Media buyers don’t dis- HELL HATH NO FURY like Thursday’s financial been a holy grail of the cable er and an industry evangelist. agree, but that doesn’t mean meltdown. With fear replacing hope in markets, economic growth may suffer, and rising hiring industry. Though the talking they’ll give cable what it 22% points may help negotia- wants. “The market doesn’t and productivity will likely be overlooked. Shows to brag about INCREASE in upfront tions, the main reasons for work that way,” says a televi- cable has plenty of brag- spending on cable, the optimistic ad forecasts sion buyer. -10% -8.1% +1. 2% ging points. Discovery Com- to $8.2 billion have to do with the improv- Rates don’t jump overnight. Further- DROP in DROP in RISE in April munications will launch the Source: Credit Suisse ing economy. more, with hits like American Idol and CSI, February NYC Bloomberg/ same-store sales Oprah Winfrey Network in Advertisers are starting to broadcasters still deliver much larger audi- bridge and tunnel Crain’s NY Stock (excluding January. USA had the top spend again, and have been ences than anything on cable except for crossings vs. year Index last week; Walmart) from earlier 3.4% on Thurs. year earlier original show on cable, Burn Notice, in the driving up pricing in what’s known as the sports, and those big shows drive up pric- Source: MTA alone Source: Kantar first quarter, TNT had the top show last scatter market—ad spots that marketers ing for all of prime time. Retail year with The Closer, and History, with re- buy close to air time during the season. Advertisers also have a long and deep ality hit Pawn Stars, had its highest rated Based on those signals, upfront spend- attachment to broadcast, making it harder

EASING FIRESTORM The number of new home o’brien, winfrey:month getty images; burn notice: nbc ever in April. ing is estimated to grow 21% for broadcast, See CHASING on Page 25 foreclosures in New York City continues to be high but is trending downward. New foreclosures 1,200

1,000 No ducking foie gras uproar 766

800 Animal-rights group photographs that they say depict the pro- The animal-rights group played a key duction of the delicacy—traditionally role in passing legislation in California in 600 cries foul, slams celeb 1Q ’08 1Q ’09 1Q ’10 made by force-feeding ducks until their liv- 2004 that will ban the sale and production of ers are enlarged—at Mr. Keller’s supplier, foie gras in that state by 2012.Similar meas- Source: PropertyShark.com chefs on the rich dish Hudson Valley Foie Gras of Ferndale,N.Y., ures have floated in Albany in recent years. CORRECTION the nation’s largest foie gras producer. APRL Chairman Bryan Pease esti- BY LISA FICKENSCHER mates that 200 restaurants in New York Kushner Cos. owns and manages the office tower at 666 Fifth Some 200 eateries here serve it Ave. This was misstated in an item on Vinson & Elkins’ lease City serve foie gras. The group plans to renewal in the May 3 “For The Record” column. for celebrity chefThomas Keller,there a spokesperson for Thomas Keller reach out to 50 of them to ask them to stop, may be no ducking this controversy: Ani- Restaurant Group says the company he says, adding that it had been in contact vol. xxvi, no. 19, may 10, 2010—Crain’s New York Business (issn mal rights activists want him to stop serv- makes “extremely conscientious decisions with Mr.Keller’s company for several years. 8756-789x) is published weekly, except for combined issues June ing foie gras in his restaurants. regarding all suppliers with whom we Last year, APRL staged a protest 28/July 5, Aug. 30/Sept. 6, and Dec. 20/Dec. 27, by Crain Com- munications Inc., 711 Third Ave., New York, NY 10017. Periodicals The Animal Protection and Rescue work,and our chefs ...source from the most against David Chang, chef of the popular postage paid at New York, N.Y., and additional mailing offices. League of San Diego planned to hold ethical purveyors possible.” New York noodle restaurants Momofuku. Postmaster: Send address changes to: Crain’s New York Business, coast-to-coast protests on Saturday, May Hudson Valley Foie Gras states on its “David Chang will be a tough nut to Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111.Fax 8, outside Mr. Keller’s pricey restaurants in website that the farm’s ducks are not raised crack,” Mr. Pease says, adding that Mr. (313) 446-6777.$3.00 a copy, $59.79 one year, $109.79 two years. California and New York City, where he in cages and “are individually hand-fed … Chang responded be promising he would (GST No. 13676-0444-RT) ©Entire contents copyright 2010 by Crain Communications Inc. operates Per Se and Bouchon Bakery in the Our trained caretakers spend four times as “serve even more foie gras.” All rights reserved. Time Warner Center on Columbus Circle. much time caring for each animal as is the Mr. Chang could not be reached for Protesters vowed to display graphic case in other foie gras farms.” comment last Friday.

2 | Crain’s New York Business | May 10, 2010 20100510-NEWS--0003-NAT-CCI-CN_-- 5/7/2010 7:08 PM Page 1

Q&A

KEEPING ON: Carl Weisbrod says that continuity on megaprojects can be maintained through NY’s agent different administrations because “new leaders give great weight to the efforts of their predecessors.” of change tells how it’s done Weisbrod discusses his biggest projects, from Times Square to downtown

CARL WEISBROD MADE his name in New York as a neighborhood transformer. He is widely credited with playing a crucial role in the early effort to transform Times Square from a tawdry crossroads. He started the process in the 1970s as executive director of the New York City Planning Commission and later as president of the 42nd Street Development Project. In 1990, he became the founding president of the New York City Economic Development Corp., which fosters business growth. He held the same post at the Alliance for Downtown New York, where he helped the neighborhood navigate through the dark days that followed the terrorist attacks of Sept. 11. In 2005, he moved to Trinity Real Estate, where he spearheaded the neighborhood’s evo- lution to a hub for creative and nonprofit firms. Following news of his planned resignation, he spoke last week with Crain’s senior reporter Theresa Agovino. Q. You spent a good part of your career redeveloping Times Square. As you look back on it now, what was the significance of that

buck ennis See NY’S AGENT on Page 26 Moving Hudson KEY BUILDINGS OWNED BY TRINITY REAL ESTATE

5 Square upmarket 2 4 Trinity seeks new leader to take over residential push leave Trinity in January, the church is faced BY THERESA AGOVINO AND AMANDA FUNG with the daunting task of finding a successor who can write the next chapter of the Hud- when carl weisbrod took the helm of son Square saga. That story began in 1705, 1 Trinity Church’s real estate division in 2005, when Queen Anne of England granted the the city’s oldest and largest private commer- land to the church as part of a 215-acre farm. 3 cial landlord was faced with a dreadful 25% The current goal is to turn the area into Trinity Properties vacancy rate in its portfolio. The Hudson a bustling, 24/7 neighborhood with shops, 6th6th Avenue 74 Trinity Place not shown on the map Square neighborhood was still struggling to restaurants and residences. At the same CanalCanal Street Street transcend its gritty earlier life as an industri- time,the successor will need to restore Trin- ADDRESS SQUARE FEET BUILT PROMINENT TENANTS al area dominated by printers. ity’s occupancy rates and rents—both of 1 1 Hudson Square 1.04 million 1929 New York magazine, Vault.com Today, Hudson Square has been trans- which have been hit by the recession—as formed into a thriving hub for creative and well as find a new second-in-command. 2 345 Hudson St. 897,000 1931 Viacom, Guggenheim Foundation, Weinstein Holdings media firms, including such names as Via- Trinity Chief Operating Officer Emily 3 100 Sixth Ave. 359,000 1930 Postworks, Estée Lauder com and New York magazine—tenants Mr. Lloyd has announced that she will follow 4 350 Hudson St. 305,000 1927 Euro RSCG, Jacques Torres Chocolate Weisbrod and his team lured away from her boss out the door in January. other parts of Manhattan. “Carl really put the framework and struc- 5 435 Hudson St. 265,000 1931 L’Oréal, Epoch Films, Deluxe Entertainment Now that he has announced his plan to See MOVING on Page 26

May 10, 2010 | Crain’s New York Business | 3 20100510-NEWS--0004-NAT-CCI-CN_-- 5/7/2010 8:23 PM Page 1

Brokerage stars switch teams as real estate market revives IN THE MARKETS by Aaron Elstein real estate market in 2008. decade, including the Plaza Hotel Jones Lang LaSalle “The prices appear a bit crazy,” and 666 Fifth Ave. Such deals put snags Cushman group says Dan Fasulo, managing director the group in an elite circle of high- of Real Capital Analytics. “But in- powered brokers that includes Dar- Will its big bet on European markets in wake of 4 big sales vestors don’t know where else to put cy Stacom and Bill Shanahan of CB their money.” Richard Ellis and Doug Harmon of come back to bite the NYSE? Eastdil Secured. BY THERESA AGOVINO Alpha brokers Rents have The move fol- ast week’s owners may be lows other expan- frightening here’s another sign that the cata- more willing to test bottomed out. sions at Jones Lang tonic Manhattan real estate market the sales market LaSalle, including Lplunge in the is returning to life:Commercial bro- lately because of a Banks are the purchase of two stock market gave kerage Jones Lang LaSalle has general sense that brokerages since rivals like Nasdaq a reeled in a competitor’s star sales the worst of the re- 2006 and the hiring chance to kick some team.The move places the firm in a cession is over. willing to lend last year of promi- good position to exploit the coming Rents appear to nent broker Scott sand into the face of upturn. have bottomed out. again Panzer from New- New York Stock Since the beginning of the year, And banks are will- mark Knight Exchange, even though the owners of four major New York ing to selectively Frank. City properties have either sold or lend again. The the exchange says it reached deals to sell the buildings at price tags attached Next up: Retail took steps to limit the unexpectedly rich prices. Just last to the four big recent transactions peter riguardi, president of New damage by having week, SL Green Realty Corp. could also serve to encourage more York operations, says Jones Lang human brokers replace photos: bloomberg news agreed to buy 125 Park Ave. for sales. LaSalle is especially keen to add a $330 million,according to If that happens, Jones retail team in the next few months, computers to handle trades. sources close to the firm. PRICE POP Lang LaSalle will be since it currently has no retail But if traders gone wild are not the NYSE’s problem, A spokesman for SL ready to compete in a way brokers. events in Greece and the rest of Europe most surely are. Green declined to com- it never has before. By “We are definitely looking at op- That’s because the NYSE’s parent, NYX Group, made a huge ment. $636 poaching four top sales- portunities in the retail space,” he The deal was sealed PRICE PER men from Cushman & says.“We want to offer full service.” less than a month after SQUARE FOOT Wakefield Inc.—Rich- Cushman & Wakefield opted bet on European markets three years ings could sink by 5% this year and SL Green agreed to buy ard Baxter, Jon Caplan, not to hire outside brokers to replace ago when it acquired Euronext,ex- 8% next year, according to KBW, 600 Lexington Ave. for for office tower at Ron Cohen and Scott its lost team—at least, not yet. Last panding the New York institution’s should the euro (currently worth $193 million. The price 600 Lexington Latham—Jones Lang week,it announced that Vice Chair- reach into Paris, London, Amster- about $1.25),fall by another third if, of $636 per square foot LaSalle landed one of the man Andrew Merin,who focuses on dam and Lisbon. The result is that God forbid, Greece defaults. A 10% for the property repre- most prominent sales suburban properties,will expand his 38% of the company’s earnings last decline in the pound could take a sents a relatively modest 18% dis- teams in the city. reach into Manhattan. Mr. Merin year came in euros, analysts say, and further 4% bite out of the exchange count from the average price of The foursome has sold $20 bil- was Cushman & Wakefield’s No. 1 35% in the pound. (For those who operator’s profits.(NYSE’s earnings $772 seen at the very peak of the lion worth of real estate in the past investment sales broker last year. like to keep track, NYX generated wouldn’t fall as much as currency $219 million in net income last values because it uses derivatives to year.) hedge its exposure.) Now, of course, the euro is sink- Nasdaq, by the way, isn’t nearly as ing in value amid growing unrest in vulnerable as the NYSE, although Greece and mounting worries that a it, too, expanded into Europe a few Europe-led bailout may not be ef- years ago by acquiring Stockholm- fective. The pound has also taken a based OMX Group.However,OMX’s hit due to the weakening British exchanges are largely in places that economy and uncertainty over who didn’t adopt the euro, such as Swe- e’re your partner. will lead the country’s next govern- den and Norway. As a result, Nas- ment. daq’s earnings should fall by only 2% Helping you turn ideas The upshot: NYX Group’s earn- if the euro fell sharply, KBW says. into growth and proﬁts.

$29,000,000 $8,500,000 $12,500,000 $39,225,000 You say EBITDA, they say ‘EBITDA adjusted’ Senior Credit Senior Revolving Senior Credit Revolving Credit Facility Credit Facility Facility Facility a white plains-based technology At AboveNet, it’s this: “net in- Provided for Provided for Provided for Provided for company called AboveNet Inc. report- come before provision for (benefit ed nice earnings growth for the first from) income taxes, other quarter.But,wow,did income/expense, in- it ever tie itself in terest income/ex- $11,000,000 $15,000,000 $17,500,000 $24,750,000 Revolving Credit Revolving Credit Revolving Credit Revolving Credit knots to be able to say pense,gain on reversal Facility Facility Facility Facility that. of foreign currency Provided for Provided for Provided for Provided for The company’s translation adjust- press release last week ments from liquida- highlighted a $4 mil- tion of subsidiaries, lion increase, to $43 income/loss from dis- million, in what it continued operations, called “adjusted gain/loss on asset dis- ASSET-BASED FINANCING ® EBITDA.” EBITDA is an acronym positions,depreciation and amortiza- that usually stands for earnings be- tion, and non-cash based stock com- fore interest, taxes, depreciation and pensation.” Got that? See why we’ve earned our reputation as a leading provider of working capital ﬁnancing to growing companies. amortization. In other words, it’s In vastly simpler terms, earnings before such unpleasant AboveNet’s net income was $13.3 For more information about Webster Business Credit, contact Warren Mino, President, at 212-806-4500 or things as costs. million—or only half as much as in visit us at Websterbcc.com to submit an online application for credit or ﬁnd our nearest location. So what’s adjusted EBITDA? the year-earlier period.

Visit Websterbcc.com NYSE:WBS* THE NUMBER OF MINUTES it took for Goldman .EW9ORKs"OSTONs0HILADELPHIAs(ARTFORDs0ORTLAND Sachs to conduct its annual stockholder meeting * The NYSE ticker symbol of WBS is assigned to Webster Financ ial Corporation and does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is last Friday. These affairs are typically handled in 60 meant purely for informational purposes. 185

Webster Business Credit Corporation is a subsidiary of Webster Bank, N.A. Member FDIC. Equal Housing Lender. The Webster Symbol and Webster Business Credit are registered in the U.S. Patent and Webster Bank, N.A. minutes or less, but an awful lot of shareholders had questions Trademark Ofﬁce. Member FDIC this year for Chairman and CEO Lloyd Blankfein.

4 | Crain’s New York Business | May 10, 2010 CN013644 4/29/10 4:49 PM Page 1 20100510-NEWS--0006-NAT-CCI-CN_-- 5/7/2010 7:06 PM Page 1

NEW YORK,NEW YORK edited by Valerie Block

NBC’s moves are paying off oving Jay Leno out of prime time and back to The Tonight MShow hasn’t just put NBC back in first place in late night.The stronger ratings at 10 o’clock from shows like Parenthood and Law & Order: Special Victims Unit have also been good for flagship station WNBC. The 11 p.m. news with Chuck Scarborough and Sue Simmons (right) is up 91% in April, compared with November, among the advertiser-friendly audience of adults 25 to 54 years old, according to Nielsen. In fact, ratings for the station overall are better than they were a year earlier—before The Jay Leno Show started in prime time— according to General Manager Tom O’Brien. The late news has come in first among adults 13 nights in April—versus just six nights the previous April—a performance Channel 4 hasn’t seen in years. The Ellen DeGeneres Show,at 4 o’clock, is up 20%, thanks in part to the host’s star turn on American Idol.The 6 p.m. news is up 68%. “We had a strong March, a strong April, and we’re having a strong May,” Mr. O’Brien says, adding that WNBC has inched closer to front-runner WABC at 11 p.m. “The plan is to get back to No. 1.” people more control over what million in 2009-10 to $25.2 Zen method others find out.The startup million in 2010-11, the biggest of selling foods creates a “Google Me” link, which cut of any state agency.The plan subscribers can add to their would reduce the state’s per capita the former chief executive of résumé, or their LinkedIn or spending on the arts from $2.48 to Zen Palate, a small chain of Facebook page. With preselected 77 cents, dropping New York vegetarian restaurants that fell on search terms, clicking the link will below the national average of 90 hard times, is turning to pull up the most pertinent—or cents and putting the state 26th in flattering—information. the nation. “If you’re a lawyer, a business “The cuts make little sense in a consultant or a doctor, you will be state where the arts have an Googled before someone hires economic impact of $25.7 billion you,” warns founder James and generate more than 345,000 Alexander. jobs in over 54,000 arts businesses,” The service is free, but for says Judith Kaufman Weiner, executive $2.95 a month, Vizibility alerts director of NYS Arts, an advocacy supermarkets for his next act. subscribers as their search results group that launched the campaign. James Tu recently inked a deal change. For $29.95 annually, “This kind of draconian cut with Whole Foods to offer six fresh subscribers will get an e-mail every represents the destruction of what Vegan dishes at the supermarket’s time someone clicks on their link. is a powerful economic engine in hot and cold food bars. Beginning Mr. Alexander, who is on his New York state.” this week, customers at city third startup, says the business locations will be able to pay $7.99 cost $500,000 to develop and Contributors: Lisa Fickenscher, Matthew per pound for such dishes as launch. He says more than 1,000 Flamm, Miriam Kreinin Souccar Asian BBQ, Shredded Heaven have signed up, and 3% are paying and Sesame Medallion. customers. He came up with the Mr.Tu runs a commissary in idea from personal experience. TALENT WATCH Clifton, N.J., where his Veg E. “I’m a guy with two first names,” Tables meals are prepared.The he says. “It’s impossible for people CANADIAN former investment banker says to find me.” SINGING Whole Foods stores in other sensation Northeastern states could soon Nikki carry the dishes as could other Sending Yanofsky supermarkets. arts message wowed In 2005, Mr.Tu bought Zen audiences Palate, which at one time had four the new york arts community at Dizzy’s eateries in the city, including Zen is flooding the in-boxes of state Club Coca- Burger.Today, there is just one Zen legislators with e-mails to fight Cola last week while celebrating Palate remaining, at 669 Ninth Ave. Gov. David Paterson’s proposed 40% her U.S. album debut. The 16- cut in funding to the industry. By year-old beauty, dressed in last Friday, more than 15,900 sequined black shorts and high- More control e-mails had been sent. tops, scatted like an old pro on over Googling As part of a larger effort to rein “Take the A Train” and other in state spending, Mr. Paterson standards. She also wrote a these days, no one takes a last month proposed slashing song for her idol, Ella Fitzgerald, meeting without doing a Google funding to the New York State called “First Lady.” search. Vizibility.com aims to give Council on the Arts from $41.6

6 | Crain’s New York Business | May 10, 2010 CN013678 5/5/10 11:25 AM Page 1

During the worst global recession in living memory, the men and women who work in the factories, ﬁ elds, laboratories, mines, warehouses, stores, oﬃ ces and boardrooms of

produced revenues of $9.76 trillion as well as the second-largest proﬁ t increase since 1955.

This is their story.

those classrooms had just over 22 children on average. Ms. Haimson also blasted CLOCK IS TICKING CityTime snafu THE INSIDER Chancellor Joel Klein for adding five THE CITY’S NEW PAYROLL SOFTWARE has deputy chancellors at salaries been a bonanza for tabloids and elected by Erik Engquist and Jeremy Smerd surpassing $190,000. “The officials seeking a scandal to expose. The bureaucracy is expanding,” she Daily News, Mayor Michael Bloomberg declared. Department of Education and City Comptroller John Liu have all spokeswoman Ann Forte says only blasted CityTime, which the News one person was newly hired; the Liu reported was pegged in 1998 to cost $68 Bloomberg other four had their titles changed. million but is now at “$722 million” and While those changes will add about “only one-third finished.” Class-size outcry $500,000 in salaries, Ms. Forte says “To date, less than one-third of the projected employees are using central and field office budgets CityTime, and the overall costs have ballooned to over 11 times the initial have been cut 20% in the past two calls for a recount years (compared with an 8% cut for price tag,” says Mr. Liu, who is auditing what he calls “this failed project.” schools) and will be pared another Although the mayor commented that the implementation of CityTime “has 6% next year. been a disaster,” he favors its completion because it is almost done and is But Ms. Haimson asserts: “Few working well for 50,000 city employees. CityTime is close to 80% built and ducation advocates are in a predictable state will save the city at least $100 million annually, according to its defenders. In Michael Bloomberg really believe that. Many of those of apoplexy over Mayor ’s ‘cuts’ were achieved by offloading any case, scrapping the system does not seem to be a viable alternative; that budget proposal, which calls for costs to schools.” would require printing 6 million timesheets over five years, and training cutting 6,400 teachers and other thousands of workers to handle payroll. school personnel. Leonie According to Science Applications International Corp., the developer of Prevailing winds CityTime, by June 2012, a few hundred people will manage a payroll that Haimson E(right), leader of the group Class for prevailing wage once required 6,000. Tasks that now take the Police Department four hours Size Matters, fired off a statement before will be done in a few minutes. The software will also save millions of dollars by the mayor had even finished laying out supporters of a bill requiring reducing errors and improving compliance with the Fair Labor Standards Act, his plan at City Hall last Thursday. prevailing wages for office cleaners, the company says. residential building workers The project was budgeted at $628 million in 2005 after the company “Simply unacceptable,” she called it. and security guards at city- acquired the previous $120 million contract, which had to be abandoned. The Department of Education subsidized developments The company is seeking $80 million more to finish. Back in 1998, the city promptly took exception to some of picked up a 34th sponsor administration budgeted $63 million to adapt an off-the-shelf product, Ms. Haimson’s claims. last week, giving the hoping that could meet New York’s complex needs, but it became clear that measure enough backers to software had to be built from scratch. The Class Size Matters leader override an expected

had said elementary school mayoral veto. bloomberg news principals have been told to plan City Councilman James Vacca, D-Bronx, for 32 children per class. But she signed on—a win for Selfless official’s Introducing was referring to a memo spelling union 32BJ SEIU, Charter sales pitch candidate Saujani out the maximum allowable which represents number, not the average.This building service workers. city comptroller John Liu was upstart candidate Reshma Saujani The union has launched aware that his suggested City (below), who is mounting a year, the maximum in grades one NotOnOurDime.org to Charter revisions would be Democratic primary challenge to through three was 28 children, but promote the bill. perceived as self-interested, but he Rep. Carolyn Maloney, sent out her went ahead with his proposals first campaign mailing last week. It because he felt they would benefit highlights her Indian parents’ flight the city, an insider says. from Uganda, and her “working- Mr. Liu had asked his deputy class” upbringing comptrollers to come up with ideas followed by a to streamline city government. He “successful career in used their suggestions when he law and business.” recommended that the comptroller’s She mentions her office absorb the Independent Budget legal work for st po Office, usurp the mayor’s revenue- Queens immigrants ny projecting authority and replace the and calls for “responsible public advocate in the mayoral line reforms on Wall Street.” of succession. The literature’s immigration theme is not tailored to the Silk Stocking portion of the district, Beating up banks which includes sections of Manhat- mayor michael bloomberg sent tan and Queens. And it cites neither a memo to the state’s congressional her Yale Law School degree nor her delegation last week imploring work as a hedge fund lawyer. them to oppose an amendment by Sen. Jim Webb, D-Va., that would slap another 50% tax on 2010 Peak-hour meters bonuses exceeding $400,000 at the pique interest 13 largest bailed-out banks. Michael McMahon, D-Staten Island, echoing brooklyn merchant and civic the memo, says the amendment groups want to increase the use of “would bring the effective tax rate parking meters that charge more [on these bonuses] to 95%.” during peak hours, the city’s Mr. Webb’s measure reflects Department of Transportation reports. public anger at Wall Street. “There DOT’s Park Smart pilot program is a little bit too much populist could be expanded to most of Fifth fever out there, but hopefully, it will and Seventh avenues in Park Slope. calm down and rational heads will Pilot projects began in prevail,” says Mr. McMahon. Greenwich Village in 2008 and in He was one of six Democrats to Park Slope last year; with variable oppose a tax on AIG bonuses. “In pricing, metered spots were 8% hindsight, a lot of people saw that I easier to find between noon and 4 was right,” he says. “The bill never p.m. Community Board 6 will discuss went anywhere.” the idea in June.

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8 | Crain’s New York Business | May 10, 2010 20100510-NEWS--0009-NAT-CCI-CN_-- 5/6/2010 7:27 PM Page 1

NEIGHBORHOOD JOURNAL It takes a green market to make a village on Staten Is. Central Avenue Municipal Lot in Street and St. Mark’s Place. As it Rerooted farmers St. George that ended last year, the turned out, however, that lease was bazaar once again a popular Saint George Greenmarket about to expire, so the city was in no has successfully been transplanted. position to promise anything. place for neighbors As of May 1,the Saturday-only orgy It was at that point that Staten of fresh food is once again in full Island Borough President James SPRING HARVEST: to meet and interact swing in a new site Molinaro stepped Saint George Greenmarket across the street in. He brokered a co—managers BY AMANDA FUNG from the old loca- The Saturday- deal with the owner Miriam Ellis (left) and Bobbie Jacobowitz. tion in a lot adjacent of the lot, Manor t takes a market—or at to the historic 80- only orgy of Properties Group. theo dorian least on Staten Island it does. year-old St. George “At the end of the and radishes within an hour,according baked goods at the Saint George In other parts of the city, Theater. fresh food day, the owner ing to Miriam Ellis, the Greenmar- Greenmarket since its inception.“It communities thrive, neigh- agreed to give the ket’s co-manager.That day,the mar- was nice to see and catch up with our bors interact and conversa- A paved paradise is back in market the space for ket drew more than 200 visitors. huge number of repeat customers.” Itions flow, but in the borough of for a while, that full swing free,”says Mr.Moli- Seven vendors set up shop the first Others felt much the same way. Richmond, where population den- grafting looked naro. The only con- day in the new location, but their “I met three friends just buying sities are far lower and where people tricky. The prob- dition is that the ranks are expected to swell to 13 as apples,” says Mr. Dorian. tend to drive more than stroll, it re- lems began in the market had to agree the season progresses and local The weather on opening day cer- quires something extra. winter when con- to vacate the space farmers harvest more crops. tainly helped to bring out the “We don’t have central areas struction got under by 3:30 p.m. due to crowds, but so, too, did a fair bit of where neighbors can get to know way on a $220 million Supreme insurance restrictions, but that “Best opening day” publicity. On Tuesday of opening each other,”says Theo Dorian,pres- Court house on the lot that the didn’t turn out to be a problem. individual vendors pay about $58 week, Mr. Molinaro called a press ident of the St. George Civic Asso- Greenmarket once called home. “Many of the farmers run out of for a space anywhere from 10 feet to conference to trumpet the new ciation. “Our green market is more Anxious to secure a new home, goods by then anyway, so it works 12 feet wide. Vendors are allowed to space. Meanwhile, community offi- important to the neighborhood Greenmarket officials met with the out fine,” says Mr. Molinaro. rent as many as spaces they need. cials handed out fliers to publicize than other ones [across the city].” city Department of Transportation In fact, that is exactly what hap- “Saturday was the best opening opening day. That’s why many Staten Is- and proposed shifting operations pened on opening day. One organic day for us in three years,”says Jeffrey “The Greenmarket has taken a landers,including Mr.Dorian,are so over to a paved parking lot that the farmer from Pennsylvania sold out Michelson,market manager for Not lot of steps to make the community happy that after a 15-year run at the city rented on the corner of Hyatt his supply of fresh lettuce, spinach Just Rugelach, which has been sell- more aware,” says Mr. Michelson.

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May 10, 2010 | Crain’s New York Business | 9 20100510-NEWS--0010-NAT-CCI-CN_-- 5/7/2010 2:36 PM Page 1

VIEWPOINT Albany should learn from NYC editor in chief Rance Crain publisher, vp Jill R. Kaplan he budget proposal that New York across-the-board increases, irrespective of how they perform EDITORIAL City Mayor Michael Bloomberg unveiled or how far tax revenues plunge. editor Xana Antunes last week is not pretty, nor is it meant to Mr. Bloomberg has a habit of reminding us that New managing editor Glenn Coleman deputy managing editors Valerie Block, be. It assumes the worst-case scenario of a York City has budgeted far more responsibly than the state, Erik Ipsen contributing editor $1.3 billion cut in state aid, including a socking away surpluses during the boom years and using Elizabeth MacBride $500 million hit to city schools.The them to soften the blow when the economy takes a dive. columnists Greg David, Alair Townsend politics editor Erik Engquist result, the mayor said, would be 4,400 We concur, but would also note that at $63 billion, the pulse editor Barbara Benson layoffs of teachers and other school personnel, with 2,000 spending plan is about 50% larger than it was when the senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, Tmore lost to attrition. mayor took office. Only about half of the increase can be Matthew Flamm, Miriam Kreinin Souccar No one expects that 6,400 positions will disappear from a attributed to inflation. A good portion stems from the 4% reporters James Comtois, Amanda Fung, Daniel Massey, Adrianne Pasquarelli, school system that hasn’t seen mass layoffs since the 1970s. raises that the mayor handed municipal unions during Hilary Potkewitz, Jeremy Smerd The mayor is wisely using the number to turn up the headier times, art director Steven Krupinski deputy art directors Carolyn McClain, pressure on the state Legislature, which a month after triggering larger Daniel Mednick The mayor’s budget staff photographer Buck Ennis missing its own budget deadline seems strangely pension costs that Mr. copy desk chief Wendy Zuckerman unmotivated to act. isn’t pretty, but it Bloomberg likes to call copy editor Thaddeus Rutkowski research editor Denise Southwood We are not blind to the political gamesmanship—the “uncontrollable.” Well, assistant research editor Maia Blume Paterson administration, with some justification, promptly controls spending they are now. editorial/research intern Selena Shen accused Mr. Bloomberg of scapegoating Albany—but the in a downturn Still, the mayor www.crainsnewyork.com mayor’s budget is essentially a rational plan to control deserves credit.The web editor Brian Tracey senior producer Elisabeth Butler Cordova spending during an economic downturn. It doesn’t raise money he’s saved will producer Kira Bindrim

taxes, and it includes unpopular actions, such as the closing be exhausted in the EDITORIAL AND ADVERTISING OFFICES of senior centers, libraries and swimming pools, some of next fiscal year— 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 which the City Council will reverse in negotiations.That perfect timing, because the improving economy should advertising: 212.210.0259 will allow council members to fulfill their need for political pick up where the surpluses leave off. He’s implemented Cable craincom nyk Fax 212.210.0499 relevance, without doing any real harm. eight rounds of agency cuts without any obvious impact on Entire contents ©copyright 2010 Crain A large unanswered question is what teachers’ raises will New Yorkers’ everyday lives. And he’s laid out a budget we Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP be.The mayor has budgeted a 2% increase, which vexes their can live with. Inc., used under license agreement. union because it’s half the rate that other city workers are If only Albany would follow suit. Nothing will change TO SUBSCRIBE: getting, and upsets us because it’s not 0%, which would be between now and whenever it passes a budget that would Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. more appropriate during a period of flat tax revenues and justify the delay. It’s imperative that lawmakers reach an www.crainsnewyork.com low inflation. “It’s unrealistic to say we can afford any raises,” agreement before the next city budget takes effect July 1 so ADVERTISING AND MARKETING the mayor himself said, contradicting his own opening offer. that agencies, and especially schools, will know what they advertising director Trish Henry real estate sales manager Cornelius P. Gore Keep in mind that teachers get seniority raises on top of can spend next year. senior account managers Irene Irvill, Courtney McCombs, William E. Squitieri account executive Anthony Mowad sales manager, classified print & online John Gallagher CRAIN’S ONLINE POLL COMMENTS sales coordinator, print & online Lulé Haznedari newsletter product manager SHOULD OBAMA Alexis Barney credit Todd J. Masura 313.446.6097 RETHINK HIS PLAN marketing director Amy Crossman Crude thinking, indeed director, audience development TO EXPAND OFFSHORE John LaMarca OIL AND WATER DON’T MIX, MUCH A LIVING WAGE IS NOT A MERE NOTION senior audience development manager OIL DRILLING? Tarek Cotran president obama should not rethink his while i don’t expect a business publication Date of poll: May 4 general manager, interactive 309 votes plan to expand offshore oil drilling, but oil like Crain’s to champion the cause of working Marc Minardo companies must either self-regulate to a greater people or agree with unions that Walmart is a web developer, interactive Chris O’Donnell Yes. The Gulf oil degree, or there should be more stringent bad employer (“Armory’s loss is Walmart’s disaster proves worldwide standards for safety. gain,” May 3), I find it offensive that you would NEW YORK PRODUCTION

that the risks . 54% The unpleasant fact is, every 20 years or so look at working people with such disdain. production and pre-press director are too high to there is a huge oil spill disaster—Santa Instead of dismissing the economic struggles Michael Corsi

justify more Barbara, Valdez and now the Gulf of Mexico. of our city’s hardworking cashiers, floor- advertising production manager 46%. offshore wells. The technology of safety needs to keep up with sweepers and security guards who are definitely Suzanne Fleischman Wies the technology of drilling. not “paid enough to raise a family here,” Crain’s PUBLISHED BY CRAIN COMMUNICATIONS INC. —rona solomon readers would have been better-served if you had chairman Keith E. Crain taken aim at the real problem. No one benefits president Rance Crain THERE’S NO EASY SUBSTITUTE from an economy where taxpayer money is used secretary Merrilee Crain No. We need to create jobs that keep workers in poverty. treasurer Mary Kay Crain to become the feds should investigate why the BP In this economy, there is a growing chasm executive vp, operations William Morrow more energy- senior vp, group publisher Gloria Scoby independent, accident in the Gulf of Mexico took place between rich developers and working families group vp, technology, circulation, despite the before taking further steps, but that does not who are struggling to stay in the middle class. manufacturing Robert C. Adams risks to the mean we should have a moratorium on Asking City Council members—who are vice president/production & environment. offshore drilling.These accidents are fairly rare, elected by the working families of New York manufacturing David Kamis chief information officer Paul Dalpiaz and we do need liquid fossil fuels. City—to vote in favor of wage standards that corporate circulation/audience Other sources of energy are great, but for make the city more livable for them, especially development director Kathy Henry the next 20 years at least, we will need oil- in projects that are paid for with their money, is founder G.D. Crain Jr. (1885-1973)

istockphoto based gas for vehicles. Even if we perfect the not a notion, it’s a necessity. chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: Go to electric car, we still need petrochemicals and —stuart appelbaum www.crainsnewyork.com/poll to have your say. oil for lubricants. President —george bogdan Retail, Wholesale and Department Store Union

10 | Crain’s New York Business | May 10, 2010 20100510-NEWS--0011-NAT-CCI-CN_-- 5/6/2010 7:29 PM Page 1

OPINION

really my boss.) The issue of the commission’s in- Changing Charter dependence is already a touchy one. Top aide Howard Wolfson, the deputy mayor for politics, went on NY1 to announce that no effort without strings would be made to eliminate the office of public advocate or the borough presidents. If the commission hether the city charter Commission were truly independent, how would named by Mayor Michael Bloomberg to he know? review the city’s constitution accomplishes Not long after, Mr. Goldstein sent his fellow commission mem- anything may depend on whether its bers a status report that emphasized recommendations are credible. And that how important it is for them to pre- means its members—all appointed by the mayor—must be be- serve their independence. More W than a few people must have taken lieved to be acting independently.It’s a pretty complicated affair. note of Mr. Wolfson’s comment. As Crain’s explained on the front page of last week’s issue,the Mr. Goldstein is walking a fine line here. If the pressure on him Charter Commission is a candidate like Mr. from the administration becomes the result of the deal the Bloomberg to win local too great, he could resign, which mayor struck with races—especially for would torpedo Charter reform and Ronald Lauder, the mayor, but maybe even damage the mayor. Mr. Goldstein’s man whose expensive those for comptroller or overriding priority, however, is the campaigns prompted the borough presiden- future of CUNY,and alienating this the voters to twice ap- cies—and making un- or any mayor would not be good for prove a two-term limit specified changes in the that cause. for city officials. Mr. land-use review So expect the tug-of-war be- Steven Mayer, CPA Lauder agreed not to process. tween the commission and the ad- 6 East 43rd Street oppose the effort to ex- Previous Charter ministration to take place behind New York, NY 10017 tend the limit to three GREG Commissions have the scenes. www.amper.com 212.682.1600 terms so that Mr. DAVID failed because they have In the end, the Charter propos- “Seeing Beyond the Numbers...”sm [email protected] Bloomberg could run been seen as mere als will likely be on term limits and again, but only after the smoke screens for the on nonpartisan elections, to be ac- mayor agreed to ap- mayor. So Mr. companied by radical changes to en- point a commission, which presum- Bloomberg tapped CUNY Chan- courage more participation. Early ably would give the voters a chance cellor Matthew Goldstein to chair voting, mail voting and same-day to reinstate the previous limit. this one because of Mr. Goldstein’s registration would all make the non- The mayor appears to have stellar reputation at the university partisan option more attractive. added two other priorities to that system.(I teach at the CUNY Grad- Whether anything else emerges will objective: instituting nonpartisan uate School of Journalism, but, this be the result of the covert tug-of- elections, so that it will be easier for being academia, Mr. Goldstein isn’t war.

zeal. In most states, lawmakers seek to nurture their core industry. Punishing Street: In 2008, the financial services sector contributed $187 billion to New York’s gross state product: more than 16% of the total.The sec- a Pyrrhic victory tor, the largest driver of economic output in the state, directly employed more than half a million New BY KENNETH ADAMS Yorkers that year. Talk about the proverbial goose ashing wall street has become an obsession of that lays the golden eggs:The finan- many New York legislators.While they may score cial services sector pays nearly $13 some political points, they risk doing great harm billion annually in New York state taxes and at least $5.5 billion in New to our most important industry.Indeed, members York City levies. Now hardly seems of the New York state Legislature have introduced to be an appropriate time to sharp- no fewer than 91 bills and resolutions this session aimed at pun- en the ax. B Albany punishes banks and in- ishing Wall Street. surance companies at our collective The members of the Assembly and the Senate are pursuing peril. Legislators should pause to consider how many jobs throughout everything from direct business in- rants, and hospitality and tourism the city and state are at stake before come taxes and “excessive bonus”tax enterprises rely on the dollars that pursuing their many tax and reg- surcharges to regulations that re- this sector and its workers spend ulatory proposals. It would seem strict or add costs to specific finan- throughout our city and state. prudent to put these plans on hold cial-services activities—and more. It is alarming that so few elected until financial services reform is re- Before state lawmakers rush to officials seem concerned that these solved in Washington and we have punish this sector, they should con- new tax and regulatory schemes had time to fully understand its im- sider that more than 1.5 million would inflict a major blow to New plications for our leading industry New Yorkers depend on the fi- York’s primary industry and thus to and the future of our state. nancial services field for their jobs. the state’s recovery and its econom- Beyond the direct employment pro- ic future.One would be hard-pressed Kenneth Adams is president and chief vided by financial firms, many pro- to imagine Michigan lawmakers executive of the Business Council of New fessionals, real estate offices, restau- bashing the auto industry with equal York State Inc.

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May 10, 2010 | Crain’s New York Business | 11 20100510-NEWS--0012-NAT-CCI-CN_-- 5/6/2010 5:23 PM Page 1

REAL ESTATE DEALS PLUS SHRINKING GAP Capital’s transaction for new 17,500- Difference in cost per square foot Boutiques bulk up on space square-foot digs at 375 Park Ave. between sublease and direct- Those deals compare with Euro- from-landlord space in Manhattan pean Investors’ 19,400-square-foot renewals,and some are tenants new to lease at 640 Fifth Ave., which 1Q 2009 easing activity by boutiques and other smaller the markets,” says Cynthia Wasser- ranked as the top deal in February, financial services firms is picking up. In March berger, managing director at Jones and Smith Management’s 14,000- alone, 15 firms took a total of 166,600 square feet Lang LaSalle. “First-quarter activity square-foot deal at 885 Third Ave., in Manhattan, according to a report from Jones in 2010 has been pretty healthy.” which topped the list in January,ac- $9.28 Standouts in March include Perella cording to the report. Lang LaSalle.The resurgence was led by a broad Weinberg Partners’ expansion at 767 Ms. Wasserberger notes that 1Q 2010 Larray of boutique financial services companies benefiting from Fifth Ave. by an additional 36,000 most of the deals among boutique stronger financial market conditions and rebounding investor square feet (bringing its total in the firms are typically between 5,000 and confidence—as well as effective rents that have come down as building to 92,600 square feet), 10,000 square feet.“These deals over $0.38 Tiedemann Investment Group’s 20,000 square feet are anomalies,” much as 50% from their 2007 peaks. move to a 23,000-square-foot office she says. “They’re not the norm.” Source: CoStar Group Inc. “Some of these deals are expansions, some of them are at 520 Madison Ave., and Entrust —james comtois Large hedge fund gets twice as big elliott associates is moving into a new midtown Manhattan office that is almost double the size of its current home. The hedge fund has signed a 15- year lease for 75,000 square feet at MORE BANK 40 W. 57th St., according to a source. The asking rent was in the mid-$80s per square foot. The landlord,The LeFrak Orga- FOR YOUR nization, was represented by How- ard Fiddle and Zachary Freeman of CB Richard Ellis Inc. Elliott Associates is expected to move into its commodious new space in about six months.The firm currently occupies 40,000 square BUSINESS. feet at 712 Fifth Ave. According to CoStar Group Inc., 10 months re- MORE CONVENIENCE. MORE SERVICE. MORE CONTROL. main on its lease there. Chris Mongeluzo of Newmark Knight Frank represented the tenant. —amanda fung Sweater maker FREE High-Performance stretches out TD Bank BusinessDirect Online Banking a sweater manufacturer is following in the footsteps of several Deposit ‘Til 6pm, Available Next Day other expanding knitwear companies by moving into a significantly Open Early, Open Late larger showroom just a couple of buildings away in the heart of the garment district. Live Customer Service 24/7 KBL Group International Ltd. signed a six-year lease for 18,000 square feet at 1407 Broadway. The firm’s current showroom, at 1410 Broadway, covers 10,000 square feet. KBL plans to move into its new quarters in July. The asking THREE YEARS IN A ROW! rent was $37 per square foot. “Highest in Customer Satisfaction with Small Business Banking” Marc Schoen, the broker from – J.D. Power and Associates Savitt Partners who represented the tenant, has recently inked a number of expansion deals for sweater man- Visit your nearest TD Bank, connect to ufacturers. Recent clients include www.tdbank.com NYC Knitwear, which expanded to or call 1-888-751-9000 and open a business account today. 14,000 square feet from 8,000 in December, and Takeout Sweaters, which grew to 10,000 square feet from 8,000 in January. “The knitwear segment of the fashion industry seems to be doing aggressively well. A lot of tenants have been increasing their square footage,” Mr. Schoen says, adding that since sweaters go with any fashion ensemble, they’re always in style. Grant Greenspan and Sommer Scafidi of the Kaufman Organiza- TD Bank N.A., formerly Commerce Bank, received the highest numerical score in the proprietary J.D. Power and Associates 2007-2009 Small Business Banking Satisfaction StudiesSM. 2009 study based on 7,226 total tion represented landlord 1407 responses, measuring 27 ﬁnancial institutions and measures opinions of small business customers with annual revenues from $100,000 to $10 million. Proprietary study results are based on experiences and perceptions of customers Broadway Real Estate. surveyed in July-August 2009. Your experiences may vary. Visit jdpower.com. Some restrictions and fees may apply; check your account agreement for more information. | TD Bank, N.A. —james comtois

12 | Crain’s New York Business | May 10, 2010 20100510-NEWS--0013,0014-NAT-CCI-CN_-- 5/6/2010 5:25 PM Page 1

SMALL BUSINESS INSIDE Q&A: A primer on the new health reform provisions PAGE 14 The tax credit for small firms “tends to go to those in low-wage states.” —Mitch Goldman, partner, Duane Morris, Page 14

THROUGH THE ROOF: At the WHACKED BY Brooklyn Economic HIGHER PREMIUMS Development Corp., Joan Bartolomeo (left) got a Health SAUDIA DAVIS Net renewal notice GREENHOUSE ECO-CLEANING with a 47% increase. INSURANCE New York state-subsidized Atlantis HMO plan INCREASE 20%

DAVID RICCIARDI PROXIMO CONSULTING SERVICES, a software development firm INSURANCE Aetna POS plan INCREASE 40%

ROSINA RUBIN ATTITUDE NEW YORK, a car service INSURANCE Health Net high-deductible plan No end to the hikes INCREASE 40%

Turmoil grows as BY JOYCE HANSON AND JUDITH MESSINA premiums climb, when joan bartolomeo, president of the Brooklyn Economic Development Corp., opened this year’s premium renewal letter from Health some by 40%; Net, she expected to see a hefty increase of 20% to 25%, typical of what she has seen over the past few years. insurers cite taxes, Instead, she got slammed with a whopping rate hike twice that size. “If you think that Anthem California’s 39% increase was ridiculous, I just but regulators HEALTH TAX CREDIT Small businesses got BEDC’s renewal notice from Health Net, and our premium is going up take a wait-and-see approach Page 16 aren’t buying it See NO END on Page 16 photos: buck ennis Insurance exchanges: Promise dampened by politics? money is a more complicated mat- The Department of Health and At first, only individuals and Mandate makes getting employer-backed ter. If history is any guide, how well Human Services will issue guidelines small businesses will be eligible to benefits easier, but costs are question mark it works, and for whom, will on creating the state-run ex- buy insurance on the exchange. The depend on their design— changes mandated by the new federal law defines a small business and that’s in the hands of the 5.8% federal health reform law. as having no more than 100 full-time BY JEREMY SMERD state administration. RISE in small Already, agencies, employer employees, though states can decide group premiums “Exchange is a wonder- when individual, groups and others with a to define small businesses as 50 or the new york state health insurance exchange scheduled to fully flexible word,” says Pe- small markets stake in the outcome are fewer employees. Larger employers be open by 2014 promises to simplify the confounding process ter Newell, co-director of merged in Mass. jockeying for input into how are slated to be eligible to buy insur- of shopping for employer-sponsored health benefits.That’s the United Hospital Fund, a to set up New York’s state- ance on the exchange by 2017. Manhattan-based health care think wide exchange. Gov. David Pater- There’s a lot at stake. In New the good news. tank. “It means different things to son has convened an advisory panel York, the exchange will likely dom- Whether or not the exchange will save small businesses different people.” to begin making recommendations. See EXCHANGES on Page 14

May 10, 2010 | Crain’s New York Business | 13 photos: buck ennis 20100510-NEWS--0013,0014-NAT-CCI-CN_-- 5/6/20105:25PMPage2 Exchanges: promise Exchanges: and politics Continued fromPage13 14 A cure for your reform confusion firms andmore firms coverage, splitting dependent credit, Answers onthetax increase rates for various plansby increase forvarious rates to insurers are trying year, ures.This accordingtostatefig- large groups, and5.4%for with 4.8%formidsize compared premiums 5.8%, grew group small From 2007to2008, a universalhealthcarelawin2006. merged themarkets when itpassed which companies inMassachusetts, businesses—just astheyhavefor premiumsforsmall couldrise does, Ifit groupvidual andsmall markets. decidetomergetheindi- state will $7.5 billioninpremiums. York’s group small market spend estimates thatbusinessesinNew UnitedHospitalFund markets.The groupinate thesmall andindividual credit forsmallfirmsthatprovide with. stick for onethatyou can could beagoodtimetoshoparound ifyou don’t likeyours,now with it,so you keepyour planifyou’re happy lot ofbusinessinNew York City. thatdoesa negotiationfirm medical CostAdvocate,a ecutive ofMedical ex- Derek Fitteron,chief costs,”says premiums ofincreased because from raising companies insurance ing thatstops rates from going upthisyear? Q. A. Q. BY POFELDT ELAINE ers andself-employed people. New York businessown- small City askedquestionsby some frequently here are someanswersto help you, To care fortheremainder of2010. planning your approach tohealth itisn’t tostart tooearly ers thisyear, in theoffingforsmallbusinessown- overnight. come clear thepicture isn’t goingtobe- action, putitinto thatwill therules write to juststarting other departments and Health andHumanServices of withtheDepartment nately, Unfortu- businessowners. for small aboutthehealthcarepicture tainty W | A crucial questioniswhetherthe A crucial Meanwhile, the new law will let lawwill thenew Meanwhile, oehls,withsomechanges Nonetheless, Crain’s New York Business Can Icountongetting thetax noth- No.“There’s prevent thereform Will my months ofuncer- it wouldendthe might havehoped you form passed, hen health | 0 2010 May 10, re- 31,000 today,from 128,000in2001. 31,000 today,from to of policyholders pared thenumber raling costshave where spi- market, state’s individual premiums forthe But itwouldlower study bytheUHF. cording toa2008 ness ratesby3%,ac- increase busi- small New Yorkwould group markets in between 8.3%and35.2%. xhne ssl-otie,one- exchanges asself-contained, lawthe new envisions One-stop shopping determining theaverage annual html?func=startdown&id=3673.) http://www.jct.gov/publications. see (For more details, exchange. run purchase insurancethrough astate- ifyou two consecutiveyearsbutonly you mayqualifyforacredit forupto 2013, thatafter The explanationsays sional JointCommitteeon Taxation. Reconciliation Act bytheCongres- cording toanexplanationofthe the credit for2010through 2013,ac- now andgetthecredit.You claim can You it alsobeginoffering can 1. Jan. credit retroactively on takeseffect thetax provided healthinsurance, least 50%oftheirpremiums. you havetopayat Inbothcases, less. average annualwagesof$50,000or 25 employees andpaythem orfewer haveto For areduced credit,you age annualwagesof$25,000orless. ployees andpaythemaver- orfewer needtohave10em- employees),you paidbyyour miums (notanyportion to thepre-35% ofyour contribution reform forthepastninemonths. whohasstudiedthe partner Morris aDuane Goldman, Mitch attorney tax says those inlow-wage states,” tendstogo “It and attorneys. saytaxaccountants much toqualify, theirworkers too tobepaying likely businessesare manylocal average, living inNew York higherthan City at$754andthecostof the country time wagesin full- weekly median surance? health in- Q. A. wages that Combining theindividualand If you doqualifyandhavealready whichis To getthefullbenefit, REPORT SMALLBUSINESS Is my salary asownercounted in Is mysalary With group market in NY’s small stake? $7.5B What’s at the state lower premiums andrestricted, plansthathave have beenchoosing mostshoppers says tor Authority, Connec- wealth HealthInsurance Common- of theMassachusetts surers ahandfulofhealth in- tooffer stop marketplaces thatrequire in- t”hesays. it,” you don’t qualifyforthecred- come, amountofin- small you are making a if “Even no. says have employees? Idon’t premiums if own insurance the tax credit formy CanIget business. company. wagesofthe theaverage calculating Nor are theirwagescountedin IRS. accordingtothe your households, for anymembersofyour familiesand can’t thecredit forpremiums claim generally and anybusinesspartners 220839,00.html). ustreas.gov/newsroom/article/0,,id= the taxcredit (http://www.irs. pageon AskedQuestions quently Fre- seetheIRS’ tailed information, Your Taxes—BigLower Time authorof Botkin, addsMr. owner, own healthinsurancepremiums as can’t thecredit foryourself,you claim attorney. a CPA IRS whoisalsoaformer tax Botkin, Sandy business owner,”says Service. Revenue the Internal accordingto ofbusinesses, types or own more than5%ofother more that2%ofanScorporation orashareholder owningpartner ifyou are asoleproprietor, wages, to claim How doIclaimit? credit. for thetax credit? ourcompanyiseligible determine if A. Q. A. A. Q. fyurnafml uies you business, afamily If you run ofwhatyou payyour- Regardless doesn’t“It ofthe countthesalary r Botkin Mr. aone-person I run The lawdoesn’t your include You beable will My companyqualifiesforthe executive director those fourlevels. isons ofproducts at ing forcompar- allow- transparent, be change will York’sNew ex- question iswhether One benefit levels. comprehensive four increasingly optionsat surance Jon Kingsdale, .For de- .For insurance plans to choose from. planstochoose insurance exchangehasmany better ifthenew work Thatwill premiums. rising apercentage ofalways- than paying rather healthcare costs, ployees’ toem- make definedcontributions businesses to be easierforsmall itmayalso exchange isstructured, we’re So savingmoneythere.” erage. insurancecov- ‘generic-brand’ it, call highnumberofshoppersof,let’s ately we’re gettingadisproportion- result, “As a Kingsdalesays. Mr. and shop,” networks. HMO-style state exchange operator.state exchange HealthPass hopestobecomethe York BusinessGroup onHealth. andtheNew agobythecity a decade exchangelaunched in HealthPass,an that can principle The local model insurance broker- an Ltd., Plus Plans president of Peltz, Arnie says yet, been forthcoming but detailshaven’t passage ofthebill, the six monthsafter their policiesstarting dren uptoage26 lets parents addchil- How willthatwork? policies. children whoare under27totheir hepredicts. Mexico orCanada,” ple outofbusinessortogoChina, isgoingtoforce peo- “It minimum. timers couldstillputyou over the alotofpart- hiring one full-timer,so countingtwohalf-timeworkers as ly Botkin. Mr. says full-timers, independentcontractorsthan hiring you are betteroff insure your team, approaching 50andcan’t affordto soifyou are orpayapenalty, itability provide ofprof- regardless insurance employees50 full-time ormore to theIRS. says ofthecredit, purposes are treated asoneemployer forthe fortheother— services one performs ers—or related businessesinwhich insurance? I’m notobligated toprovide so that are smallerthan50employees, entities I splitmycompanyintotwo Should will costmeunderthereform. health insurance untilIknowwhatit intooffering don’t wanttolockmyself employer, says theIRS. says employer, it onyour annualtaxreturn asan A. Q. A. Q. Depending onhow New York’s easytocompare price “It’s very Premiums are notlower than The lawhasaformula forrough- The lawrequires companieswith tytnd Thelaw tuned. Stay My employees wanttoadd Businesses withthesameown- I My companyhas50employees. be seenatwork

Q contributions from theirpaychecks. contributions theydeducttheiremployees’ plan; nesses are billedforthecost ofthe bers andworks withbrokers. tomem- provides customerservice 4,100 businessesare covered. About34,000peoplefrom ilies. ual plansandupto$2,300forfam- $215 and$800amonthforindivid- costingbetween different options, save thecompanymoney.” you it’s “If cheaper, health policy. director of Nowicki, Shawn says employer’s contribution. tocoverpockets costsexceedingthe diggingintotheirown want, they pick employees theinsurance erage; employee’s toeach contribute cov- cide how muchtheywantto money de- Memberfirms it contributions. makes iteasyforanemployer tolim- butHealthPass those inthemarket, or the federal government. or thefederal becreatedpool thatwill bythe state buy itthisyearthrough ahigh-risk you beableto will to getinsurance, ifyou havenotbeenable However, Peltz. Mr. says market are ifthey ill, outoftheinsurance getting locked other statestoprotect people from than inmany the lawsgofurther where situation inNew York state, affect me? How doesthelaw existing condition. apre- able tobuyapolicybecauseof e okCt.Heanticipatesthat New York City. age thatdoesbusinessinandaround A. Q. significant savingsforthosepeople.” significant isa Peltz says.“It Mr. $400 to$550,” anywhere from business group rate, theygettopaythe for thatchild, where from $700to$900amonth whichisany- an individualplan, ofhavingtopurchase “Instead says. he ditional premium outofpocket, plan andpaythefullcostofad- toaddthechildgroup ability thecovered employee hasthe er, thing thatmakesemployers balk. ployee’s premiums—some- monthly about $100tothecostofeachem- wouldadd says.This all employees,he to thatextendsthisright group policy employer musttothe addarider the ployer-sponsored group plan, the federalgovernment mayusean approach similartoNew York law. state,which already hasmore gen- state,which erous provisions thanthefederal add achilduptoage30anem- HealthPass administerstheplan, Employees accessasmany30 pay,”“You want abetterplan,you If an employer says nototherid- If anemployer says This is a relatively uncommon This isarelatively I’m uninsured andhaven’t been urnl,ifaparent wantsto Currently, &

A Busi-

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REPORT SMALL BUSINESS TAX CREDIT three years will do the same thing NO HELP SO FAR that the credit card industry did, No end to insurance rate hikes LAST FALL, Crain’s interviewed when rates went through the roof before the federal regulations went Saudia Davis of Greenhouse Eco- Continued from Page 13 creases in New York City is unclear, flation was about 9% nationwide in into effect last year,” says Troy Cleaning in Brooklyn about health 47%. And it is a very stripped-down though they are certainly adding to 2009. Oechsner, deputy superintendent reform. She said at the time that plan,” she says. “I doubt that we’re the confusion and turmoil in the But “there is no justification for for health in the Insurance Depart- she’d be eager to add health alone.” small business market as companies [these increases] if you look at med- ment. insurance as a benefit if there Small businesses across the city and insurers try to figure out how ical costs,” says Karen Davis, presi- Most, if not all, of the companies were a tax credit to help her do so. are being hit with higher-than-ever health reform is going to affect them. dent of the Commonwealth Fund, in the small business market are Fast forward to this spring. premium hikes this year, with typi- which studies health care systems. raising rates by considerable Health reform did pass with a tax cal increases near 20% and some Medical costs are rising Regulators are taking notice of amounts. Empire Blue Cross Blue credit, a fairly rich one of as much more than 40%. A public backlash insurers say rates are going up the increases. The state Insurance Shield,a subsidiary of Indianapolis- as 35%. But Ms. Davis is not against Anthem’s premium increase because of the rising costs of med- Department asked Crain’s for copies based WellPoint Inc., is raising pre- rushing to buy insurance for her helped President Barack Obama ical care and new state taxes levied to of BEDC’s notification letter. miums on its hundreds of small five full-time workers. For one pass the national health reform bill. close the budget gap, which added “One of the concerns we have is business products by an average of thing, premiums have increased The reason for the enormous in- about 4% to premiums. Medical in- that health insurers over the next See INSURANCE on Page 18 in the past six months, so that even the tax credit doesn’t put them into the range of $150 a month, which she could afford. For another, the credit is complicated. “My energy is best spent coming up with a long-term strategy and not necessarily running out and implementing a new plan,” she says. Small businesses across the city are taking a wait-and-see approach to the credit. Those that offer insurance and are eligible under the strict limits will benefit this year. But few companies are adding insurance. “[The tax credit] is great for FOR 150 YEARS, employers already offering insurance, and it may push a couple of businesses back into OUR STRENGTH the mix that were right on the fringe,” says Vince Ashton, executive director of HealthPass, HAS HELPED PROTECT a nonprofit, small-business insurance exchange in Manhattan. “But small businesses are really a cash-flow WHAT MATTERS MOST. business, and until [premium] numbers are down, which they’re not at this point, it’s still not making it [affordable].” In 1860, a group of business pioneers set out to create a different kind of life To claim even part of the insurance company, one that upheld the very highest standards. 150 years later, credit, a business must have fewer than 25 workers and less Guardian remains a company where people count, policyholders come ﬁ rst, than $50,000 in average annual and business decisions are made with integrity. We’re grateful for the support wages. Yet, those are precisely the kinds of companies unlikely we’ve received along the way: from the people we serve, our associates past and to be able to afford insurance if prices continue to climb. present, and so many others. And we’ll continue to do business as we always Rosina Rubin of Attitude New have—guided by our values, no matter how times change. York, a chauffeured-car business, switched to a high-deductible plan a few years ago, and added health reimbursement accounts for her employees. “It brought expenses down for employees and brought expenses down for us,” says Ms. Rubin. Not for long. Premiums on the Health Net plan went up 40% last year. She switched to a plan with an even higher deductible. Though the health reform bill doesn’t promise much help in the LIFE INSURANCE DISABILITY INCOME INSURANCE LONG TERM CARE INSURANCE short term, David Ricciardi, co-owner of Proximo Consulting Services, INVESTMENTS RETIREMENT EMPLOYEE BENEFITS ANNUITIES a Manhattan software development firm, hopes reform means www.guardianlife.com that costs will eventually level off. “I’m generally supportive [of reform],” he says. “The issue of ©2010. Disability income products and Long Term Care Insurance underwritten and issued by Berkshire Life Insurance Company of A merica, Pittsﬁ eld, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America (Guardian), New York, NY. [insuring the uninsured] and Investments are offered through Park Avenue Securities LLC (PAS), 7 Hanover Square, New York, NY 10004. PAS is an indirect wholly owned subsidiary of The Guardian Life Insurance Company of America, New York, NY. PAS, member FINRA, SIPC. being able to maintain coverage— those things are good from an employee’s standpoint.”

GLIC_tradeADS_CRAIN_JrPage.indd 1 3/23/10 12:34 PM 16 | Crain’s New York Business | May 10, 2010 CN013685 5/5/10 1:49 PM Page 1 20100510-NEWS--0018-NAT-CCI-CN_-- 5/6/2010 5:27 PM Page 1

REPORT SMALL BUSINESS

Insurance rate hikes hit 40% WHAT DO NY INSURERS SPEND ON CARE? SOME EXPERTS HOPE that new requirements in the federal health reform bill that insurers spend more than 80% of premiums on actual medical care, rather than administration, will help hold down costs. Many health plans in New York, which has Continued from Page 16 lion, in 2009—sold its business in Who knows?” long had a similar though less stringent requirement, already exceed that standard. 14% to 17%, says Mark Wagar, Em- Connecticut, New York and New Politicians are taking note. Con- % OF PREMIUM DOLLARS pire’s president. He says none of the Jersey to Minneapolis-based Unit- gress is considering legislation that HMOs 2006 2008 increases were more than 20%. edHealth Group in a deal that would prevent what it deems exces- But other companies, including closed in December. Health Net re- sive rate hikes, and Gov. David Pa- Aetna Health 79.7% 79.2% EmblemHealth and Aetna, are in- ported a gain of $350 million in terson wants to repeal a 1993 law Atlantis Health Plan 64.1% 81.0% creasing premiums on select prod- cash. that exempts insurance companies CDPHP 85.7% 89.8% ucts by more—as much as 22% and “It’s unfortunate that it has to be from having to get prior approval for Cigna Healthcare 93.9% 89.9% 40%, respectively, based on notices like this,but it’s in line with what we rate increases in New York. ConnectiCare of New York small businesses have received. are seeing,”Ms.Ferreira says,noting (EmblemHealth) 64.5% 125.8% Some companies may have been that the rate increase involves a “very Limits may not be a good idea Empire BCBS HealthChoice HMO 82.9% 88.8% caught by the rapid changes in the complicated formula” encompass- whether such limits would be GHI HMO 92.4% 82.4% health insurance market. ing Health Net’s company costs as wise policy, however, remains to be Health Net of New York 80.9% 85.9% As premiums have increased in well as industry trends and the rate seen. Insurance companies say they Independent Health Association 90.7% 82.4% recent years, more small businesses of inflation. “No one ever looks for- artificially suppress rates, forcing are dropping coverage or shifting to ward to renewals at this rate,but it is companies to drop lines of coverage Managed Health Inc. (HealthFirst) 85.3% 84.8% less expensive plans, meaning that a reflection of the times.” and setting the stage for increases MVP Health Care 88.9% 87.9% existing risk pools, especially for The increases are hitting hard. down the road. Oxford Health Plans 76.9% 72.8% more generous plans, are shrinking. David Ricciardi, co-owner of Prox- In the meantime, Ms. Bar- Preferred Care (MVP Health Care) 84.9% 90.0% Smaller risk pools mean higher pre- imo Consulting Services, a Man- tolomeo is resigned to forking over miums if a few small businesses in hattan software development firm $506 monthly for each of her seven NONPROFIT INSURERS the pools have expensive medical with 12 full-time employees,saw his employees, instead of the $344 her claims. premiums for an Aetna point-of- nonprofit paid last year. She’s trying CDPHP Universal Benefits 89.8% 93.0% service plan increase 40% this year. to find a way to squeeze about Excellus BCBS 87.9% 91.0% Decided before health reform He had been paying 100% of indi- $1,000 additional per month from Group Health Inc. 90.1% 89.6% health net spokeswoman Alice vidual policies for his workers. Now, her budget, which uses grant money Health Insurance Plan of Greater New York 82.3% 86.7% Ferreira says the increase for he’s paying only 60%. to fund contracted projects. BEDC’s plan, a point-of-service “I don’t think costs are coming “Asking employees to pay more HealthNow New York BCBS 88.2% 87.4% product, was decided upon before down significantly,”says Mr.Riccia- after several years of no salary in- Independent Health Benefits 88.2% 89.3% the health reform bill passed. Los rdi.“What happens to us long-term, creases is like asking them to take a Preferred Assurance (MVP Health Care) 83.9% 126.2% Angeles-based Health Net—which when the exchanges [mandated by pay cut,” she says.“[Health Net] has Not all plans are required to report medical loss ratios, so not all are included. Source: United Hospital Fund saw revenue rise 2.2%, to $15.7 bil- federal health care reform] kick in? us in a lock hold.”

18 | Crain’s New York Business | May 10, 2010 20100510-NEWS--0019-NAT-CCI-CN_-- 5/6/2010 7:52 PM Page 1

“Dr. Martens is the perfect icon- ic shoe that represents that attitude Dr. Martens stomping into SoHo of toughness. It’s a little bit androg- ynous, which was a part of what was going on in the ’90s,” says Shannon last wildly popular in the ’90s, is in The site at 148 Spring, between not return calls requesting com- Davenport, youth market editor at Workboot-style negotiation for space at 148 Spring Wooster Street and West Broadway, ment. trend-tracking firm Stylesight. shoemaker close to St., sources say. offers about 2,500 square feet of re- The Dr.Martens revival is linked Ms. Davenport notes that Daisy The 50-year-old brand already tail space and is neighbor to high- to a resurgence in grunge looks— Lowe, daughter of singer Gavin signing first NYC has U.S. outposts in Seattle, Port- end tenants such as Chanel, styles that originally appeared in Rossdale, lead singer for the ’90s rock lease on Spring St. land,Ore.,and San Francisco,in ad- Olive & Bette’s and Theo- early-1990s hit films like Reali- band Bush, has served as the face of dition to stores in London and Paris. ry.The current asking rent is ty Bitesand television shows like the Dr.Martens brand in recent years. This would be its sole New York near $380 a square foot. My So-Called “We’ve seen flannel shirts and ripped BY ADRIANNE PASQUARELLI City location. A company represen- Life. denim for a while, but it’s picking up tative recently told Footwear News Grunge resurgence momentum,” Ms. Davenport says. new yorkers nostalgic for the that Dr.Martens is planning to open andrew kahn, the Cush- She explained that lace-up boots footwear of decades past may need a 2,000-square-foot store in SoHo man & Wakefield Inc. bro- similar to Dr. Martens have been look no farther than SoHo. U.K.- in September, thanks to a 10% rise ker representing the space, ubiquitous on the runways as part of based shoe company Dr. Martens, in sales this year, following a 20% declined to comment. A the military-inspired craze sweep- whose workboot-style footwear was decline in 2009. Dr.Martens spokeswoman did ing the fashion industry. Nonprofit group shutters Recession too much for film, concert producer Gen Art

BY ADRIANNE PASQUARELLI

a prominent nonprofit that spe- cialized in producing film, concerts and fashion shows featuring emerg- ing talent closed its doors last week, the latest victim of the recession. Gen Art, a 16-year-old organization that had been an early supporter of now-high-profile celebrities like Zac Posen,halted operations, founders Ian and Stefan Ge- rard said in an e-mail to supporters. “During this challenging time,we did everything in our power to adjust our business to these new business realities by cutting costs and seeking out alternative funding solutions,” their e-mail read, noting that a major corporate partnership “unexpectedly collapsed”a few weeks ago. A two-year struggle like other nonprofits, Gen Art has struggled to survive over the past two years.The organization reported about $7 million in revenue in 2008, a good 80% of it linked to corporate sponsorships. Slashed budgets Helping an American icon forced the Gerard brothers to lay off staff and put remaining employees become a global player for 40 years. on a four-day workweek last year. Indeed, in June 2009, several high-profile celebrities—whose ca- Radio Flyer has been growing up with kids for almost a century. And for decades, we’ve reers Gen Art helped launch— rolled forward with them, pulling together the resources they need to do business gathered for a benefit in order to around the world, including nancing, treasury services, trade and foreign exchange raise money for the organization. Stars including Adrien Brody,Adri- hedging. Working with you, our dedicated client manager can bring together the an Grenier and Mr. Posen showed team and solutions to keep your business moving in the right direction, too. Call up at the fundraiser. “We didn’t expect this recession to Thomas Carley at 212.796.6947 or visit bankofamerica.com/businesssolutions be so quick and deep,” Ian Gerard told Crain’s at the time of the benefit. The news comes on the heels of Gen Art’s 15th Anniversary Film “ Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed Festival, which concluded in New globally by banking af liates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment York on April 13. banking af liates of Bank of America Corporation (“Investment Banking Af liates”), including, in the United States, Banc of America Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, which are both registered broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, locally registered entities. Investment products offered by Investment Banking Af liates: Are Not FDIC Insured • May Lose The weeklong festival included Value • Are Not Bank Guaranteed. ©2010 Bank of America Corporation. AR451S2 the New York premiere of the film Happythankyoumoreplease.

May 10, 2010 | Crain’s New York Business | 19 CN013688_left 5/6/10 11:56 AM Page 1 Help Make a in the Life Brought to You By The Children

After learning about camp programs for NYC children in need, the children of Crain’s New York Business were inspired to create ads featuring the Text to Give program. If you’d like to skip a snack to help a child in need, text CHILD to 20222 and donate $5.00 to The Children’s Aid Society. Learn more at childrensaidsociety.org CN013688_right 5/6/10 11:57 AM Page 2 a Difference of a Child en of Crain’s New York Business

The above art project was created by the children of Crain’s New York Business on Take Your Child to Work Day. nb19p22-23cl.qxp 5/7/10 12:50 PM Page 22

EVENT PLANNING PUBLIC & LEGAL NOTICES

Syta/Event/Concepts - graphic design & Notice of Qualification of River Notice of Qualification of SOUND Notice of Qualification of Goldman BLACKDIVINE, LLC. Appl. for Auth. event production: corporate events, Partners 2003-13, LLC. Authority filed HARBOR CAPITAL LLC. Authority filed Sachs ESF Holdings, L.P. Authority filed with Secy. of State NY (SSNY): product launches, invitation design with NY Dept. of State on 3/30/10. with Secy. of State of NY (SSNY) on filed with Secy. of State of NY (SSNY) 02/12/10. Jurisd. and date of org.: TX sytaeventconcepts.com 718 233 3809 Office location: NY County. Princ. bus. 03/29/10. Office location: NY County. on 3/5/10. Office location: NY County. 11/13/08. NY State office loc.: NY Cty. addr.: 595 Madison Ave., 17th Fl., LLC formed in Delaware (DE) on LP formed in Cayman Islands (CI) on SSNY designated as agent of LLC upon NY, NY 10022. LLC formed in DE on 08/21/09. Princ. office of LLC: Michael 10/29/09. SSNY designated as agent whom process may be served. SSNY 12/9/03. NY Sec. of State designated J. Zupon, CEO, 12 E. 49th St., 36th of LP upon whom process against it shall mail process to: c/o KVB PART- as agent of LLC upon whom process Fl., NY, NY 10017. SSNY designated may be served. SSNY shall mail NERS, 60 Broad St., Suite 3502, New REAL ESTATE against it may be served and shall as agent of LLC upon whom process process to: 200 West St., NY, NY York, NY 10004. Addr. of LLC in TX mail process to: CT Corporation against it may be served. SSNY shall 10282. CI address of LP: Maples is c/o PARACORP INCORPORATED, System, 111 8th Ave., NY, NY 10011, mail process to the LLC at the addr. of Corporate Services Ltd, P.O. Box 3610-2 N. Josey Ln #223, Carrollton, OFFICE SPACE regd. agent upon whom process may its princ. office. DE addr. of LLC: c/o 309, Ugland House, Grand Cayman, TX 75007. Cert. of Form. filed with be served. DE addr. of LLC: 1209 Corporation Service Co., 2711 KY1-1104, CI. Name/address of each TX Secy. of State, Corps. Sec., P.O. Orange St., Wilmington, DE 19801. Centerville Rd., Ste. 400, Wilmington, genl. ptr. available from SSNY. Cert. Box 13697, Austin, TX 78711-3697. PARK /54TH Arts. of Org. filed with DE Sec. of DE 19808. Arts. of Org. filed with DE of LP filed with Registrar of Exempted Purpose: any lawful activity. State, 401 Federal St., Dover, DE Secy. of State, Div. of Corps., 401 LPs, Elizabethan Sq., 4th Fl., Phase large office in tasteful 19901. Purpose: any lawful activity. Federal St., Dover, DE 19901. Four, George Town, Grand Cayman, law suite. Purpose: Any lawful activity. CI. Purpose: any lawful activity. Name of LLC: FK Global Retail LLC. 1-2 workstations available. Auth. filed with NY Dept. of State: Notice of Qualification of Cameo By 3/8/10. Office loc.: NY Co. LLC All amenities. Rux LLC. Application for Authority Notice of Formation of Eastern LYNN HERMAN ASSOCIATES LLC, a formed in DE: 1/21/10. NY Sec. of 212.688.5900 ext. 249 filed with Secy. of State of NY (SSNY) Capital Debt LLC. Arts. of Org. filed domestic Limited Liability Company State designated agent of LLC upon on 04/30/2010. Office location: New with Secy. of State of NY (SSNY) on (LLC) filed with the Sec of State of NY whom process against it may be York County; orig. jurisdiction: 4/13/10. Office location: NY County. on 1/22/10. NY Office location: New served and shall mail process to: c/o Delaware. SSNY designated as agent SSNY designated as agent of LLC York County. SSNY is designated as Business Filings Inc., 187 Wolf Rd., of LLC upon whom process against upon whom process against it may agent upon whom process against Ste. 101, Albany, NY 12205, regd. REQUEST FOR it may be served. SSNY shall mail be served. SSNY shall mail process the LLC may be served. SSNY shall agt. upon whom process may be PROPOSALS process to the LLC, 176 Broadway, to: c/o The LLC, 1407 Broadway, mail a copy of any process against served. DE addr. of LLC: 1201 Mezzanine F, New York, NY 10038. 41st Fl., NY, NY 10018. Purpose: any the LLC served upon him/her to The Orange St., Ste. 600, Wilmington, DE Purpose: any lawful act or activity. lawful activity. LLC, 1763 Second Ave., NY, NY 19801. Arts. of Org. filed with DE 10128. General purposes. Sec. of State, 401 Federal St., Dover, Notice of Formation of CITYWIDE Notice of Formation of BRICK-RUN DE 19901. Purpose: any lawful act. ASSOCIATES LIMITED LIABILITY SPORTS PHYSICAL THERAPY, 53RD GROUP ASSOCIATES LLC a PLLC. Arts. of Org. filed with Secy. of COMPANY, a domestic LLC. Arts. of domestic Limited Liability Company NOTICE OF FORMATION of King Org. filed with the SSNY on State of NY (SSNY) on 10/24/06. (LLC) filed with the Sec of State of NY Office location: NY County. SSNY Prester John, LLC. Arts of Org filed 04/02/2010. Office location: NY on 2/5/10. NY Office location: New with the Secy of State of New York County. SSNY has been designated designated as agent of PLLC upon York County. SSNY is designated as whom process against it may be (SSNY) on 1/25/10. Office location: NY as agent upon whom process against agent upon whom process against County. SSNY has been designated as the LLC may be served. SSNY shall served. SSNY shall mail process to the LLC may be served. SSNY shall Gurjeet Chadha, 5800 Arlington Ave., an agent upon whom process may be mail a copy of process to: 100 mail a copy of any process against served and shall mail a copy of any Lafayette St. Ste 301, NY, NY 10013. Apt. 3M, Riverdale, NY 10471. the LLC served upon him/her to The Purpose: Any lawful activity. process to the principal business Purpose: Any Lawful Purpose. LLC, 347 5th Ave., Ste. 1600, NY, NY address: 107 W. 119 St, Unit A, NY, 10016. General Purposes. NY 10026. Purpose: any lawful act. Notice of Formation of a Limited Notice of formation of EAST SIDE Liability Company (LLC): Name: NOISE & SPIRITS LLC. Arts. of Org. Notice of Formation of LEXINGTON NATIVE RESONANCE PRODUCTIONS Notice of Formation of 110th Street filed with the Sect’y of State of NY MANAGEMENT ASSOCIATES, LLC. LLC, Articles of Organization filed Holdings NY, LLC. Arts. of Org. filed (SSNY) on 4/5/10. Office location NY Arts. of Org. filed with Secy. of State with the Secretary of State of New with NY Dept. of State on 2/1/10. County. The street address: 154 Grand of NY (SSNY) on 04/08/10. Office York (SSNY) on 01/28/2010. Office Office location: NY County. Sec. of St. NY, NY 10013. SSNY designated location: NY County. Princ. office of location: New York County. SSNY State designated as agent of LLC as agent upon whom process may be LLC: c/o Pacific Housing Advisors, has been designated as agent of the upon whom process against it may served and shall mail a copy of any 570 Lexington Ave., 24th Fl., NY, NY LLC upon whom process against it be served and shall mail process to process to PO Box 3716, Mt. Vernon, 10022. SSNY designated as agent of may be served. SSNY shall mail a the principal business addr.: c/o The NY 10553. Purpose: any lawful act. LLC upon whom process against it may copy of process to: C/O NATIVE be served. SSNY shall mail process Olnick Organization, Inc., 135 E. 57th RESONANCE PRODUCTIONS LLC, to the LLC at the addr. of its princ. St., 22nd Fl., NY, NY 10022, Attn: Legal Notice of Formation of AMBROSIA P.O. Box 277 Lanesborough, MA office. Purpose: Any lawful actvity. Dept. Purpose: any lawful activity. CAPITAL LLC. Arts. of Org. filed with 02137. Purpose: Any Lawful Purpose. Secy. of State of NY (SSNY) on Latest date upon which LLC is to Notice of Qualification of IP III Name of For. LP: Blue Square Small 03/25/10. Office location: NY County. dissolve: No specific date. MORTGAGES CARRY LP. Authority Cap Value Fund LP. Appl. for Auth. Princ. office of LLC: 10 W. 46th St., filed with Secy. of State of NY filed with Sec. of State of NY: 2/6/09. 7th Fl., NY, NY 10036. SSNY desig- Notice of Qualification of CELLA (SSNY) on 04/19/10. Office location: Jurisd. and date of org.: DE 2/5/09. nated as agent of LLC upon whom BELLA LLC. Authority filed with Secy. NY County. LP formed in Delaware NY State off. loc.: New York Cty. process against it may be served. of State of NY (SSNY) on 4/9/10. (DE) on 10/09/07. SSNY designated Sec. of State designated as agent SSNY shall mail process to the LLC Office location: NY County. LLC as agent of LP upon whom process upon whom process against it may at the addr. of its princ. office. formed in Florida (FL) on 12/10/09. against it may be served. SSNY shall be served. Sec. of State shall mail Purpose: Any lawful activity. SSNY designated as agent of LLC mail process to the Partnership, 40 copy of process to: c/o Blue Square upon whom process against it may W. 57th St., NY, NY 10019. Name Partners LLC, 200 E. 94th St., Ste. Notice of formation of Onward be served. SSNY shall mail process and addr. of each general partner are 2517, NY, NY 10128. Addr. of LP in Earthling LLC. Arts of Org. filed with to: The LLC, c/o Frank G. Messina, available from SSNY. DE addr. of LP: DE is: c/o National Corporate Secy. of State of N.Y. (SSNY) on 40-06 Warren St., Elmhurst, NY 11373. c/o The Corporation Trust Co., Corp. Research, Ltd., 615 South DuPont 1/25/10. Office location: New York FL address of LLC: 2100 N. Ocean Trust Center, 1209 Orange St., Hwy., Dover, DE 19901. Name/addr. County. SSNY designated as agent Blvd., Apt. 2602, Ft. Lauderdale, FL Wilmington, DE 19801. Arts. of Org. of GP avail. from Sec. of State. of LLC upon whom process against 33305. Arts. of Org. filed with FL filed with Jeffrey W. Bullock; Div. of Authorized office in DE where Cert. it may be served. SSNY shall mail Secy. of State, 2661 Executive Corp., John G. Townsend Bldg., 401 of LP is filed is: DE Sec. of State, process to: 121 Macdougal Street, Center Circle, Tallahassee, FL 32301. Federal St. - Ste. 4, Dover, DE 401 Federal St., Dover, DE 19901. No. 13, New York, NY 10012. Purpose: any lawful activity. 19901. Purpose: Any lawful activity. Purpose: any lawful activity. Purpose: any lawful activity.

PUBLIC & LEGAL Notice of Qualification of IROQUOIS OPPORTUNITY MANAGEMENT NOTICES L.L.C. Authority filed with Secy. of State of NY (SSNY) on 03/22/10. Notice of Qualification of Concierge Office location: NY County. LLC Auctions LLC. Authority filed with formed in Delaware (DE) on 05/09/07. Secy. of State of NY (SSNY) on Princ. office of LLC: c/o Iroquois 3/23/10. Office location: NY County. Capital Management, LLC, 641 LLC formed in Florida (FL) on 6/25/08. Lexington Ave., 26th Fl., NY, NY SSNY designated as agent of LLC 10022. SSNY designated as agent of upon whom process against it may LLC upon whom process against it be served. SSNY shall mail process may be served. SSNY shall mail to: National Corporate Research, process to the LLC at the addr. of its Ltd., 10 E. 40th St., 10th Fl., NY, NY princ. office. DE addr. of LLC: 10016. FL address of LLC: 777 S Corporation Trust Center, 1209 Flagler Dr., Ste. 800, W Palm Beach Orange St., Wilmington, DE 19801. FL 33401. Arts. of Org. filed with FL Arts. of Org. filed with Secy. of State Secy. of State, 2661 Executive of DE, Div. of Corps., 401 Federal St., Center Circle, Tallahassee, FL Ste. 4, Dover, DE 19901. Purpose: 32301. Purpose: any lawful activity. Any lawful activity.

22 | Crain’s New York Business | May 10, 2010 nb19p22-23cl.qxp 5/7/10 12:50 PM Page 23

PUBLIC & LEGAL NOTICES

Notice of Qualification of The Helsinki Notice of Qualification of CENTRAL Notice of Qualification of LIBER Notice of Qualification of RIVER FORMATION NOTICE OF THE LIMIT- Group LLC. Authority filed with Secy. PARK REALTY NY LLC. Authority CAPITAL, LLC. Authority filed with TWICE CAPITAL ADVISORS, LLC. ED LIABILITY COMPANY (LLC). of State of NY (SSNY) on 8/17/09. filed with Secy. of State of NY Secy. of State of NY (SSNY) on Authority filed with Secy. of State of NAME: SKATE’S, LLC. App. for Auth. Office location: NY County. LLC (SSNY) on 03/22/10. Office location: 01/15/10. Office location: NY County. NY (SSNY) on 04/08/10. Office loca- filed with NY Secretary of State formed in Delaware (DE) on 8/10/09. NY County. LLC formed in Delaware LLC formed in Delaware (DE) on tion: NY County. LLC formed in (SSNY): March 16, 2010 under ficti- SSNY designated as agent of LLC (DE) on 03/16/10. SSNY designated 03/10/09. Princ. office of LLC: 711 Delaware (DE) on 03/15/10. SSNY tious name SKATE’S ART MARKET upon whom process against it may as agent of LLC upon whom process Third Ave., Ste. 1806, NY, NY 10017. designated as agent of LLC upon RESEARCH, LLC. LLC originally filed be served. SSNY shall mail process against it may be served. SSNY shall SSNY designated as agent of LLC whom process against it may be with DE Secretary of State: February to: c/o Frankfurt Kurnit Klein & Selz, mail process to c/o Corporation upon whom process against it may served. SSNY shall mail process to 1, 2010. Office location: New York P.C., 488 Madison Ave., 10th Fl., NY, Service Co. (CSC), 80 State St., be served. SSNY shall mail process c/o Medley Capital, LLC, 375 Park County. SSNY designated as agent NY 10022, Attn: Jerrold B. Spiegel, Albany, NY 12207-2543. DE addr. of to the LLC at the princ. office of the Ave., 33rd Fl., NY, NY 10152. DE of the LLC upon whom process Esq. DE address of LLC: 874 Walker LLC: c/o CSC, 2711 Centerville Rd., LLC. DE addr. of LLC: Corporation addr. of LLC: Corporation Service against it may be served. SSNY shall Road, Ste. C, Dover, DE 19904. Arts. Ste. 400, Wilmington, DE 19808. Service Co., 2711 Centerville Rd., Co., 2711 Centerville Rd., Ste. 400, mail copy of process to 575 of Org. filed with DE Secy. of State, Arts. of Org. filed with Secy. of State Ste. 400, Willmington, DE 19808. Wilmington, DE 19808. Arts. of Org. Broadway, 5th Floor, New York, New Townsend Bldg., Dover, DE 19901. of DE, State of DE - Div. of Corps., Arts. of Org. filed with Secy. of State filed with DE Secy. of State, Div. of York 10012, ATTN: President/CEO. Purpose: any lawful activity. John G. Townsend Bldg., 401 of DE, Div. of Corps., John G. Corps., 401 Federal St., Dover, DE Purpose: All lawful purposes. Federal St. - Ste. 4, Dover, DE Townsend Bldg., 401 Federal St., 19901. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. Ste. 4, Dover, DE 19901. Purpose: Notice of Qualification of PFS Any lawful activity. 940 Fulton LLC. Arts. of Org. filed Holdings, LLC. Authority filed with NOTICE OF FORMATION of Hotiron with Secy. of State of NY (SSNY) on NY Dept. of State on 3/26/10. Office Notice of Formation of Egremont Creative, LLC. Arts of Org filed with 11/3/09. Ofc in NY Cty. SSNY desig- location: NY County. LLC formed in Associates LLC. Arts. of Org. filed with NOTICE OF FORMATION OF ESK the Secy of State of New York (SSNY) nated agent of LLC upon whom DE on 11/24/09. NY Sec. of State NY Dept. of State on 2/24/10. Office Capital Management LLC. Arts. of on 1/13/10. Office location: NY County. process against it may be served. designated as agent of LLC upon location: NY County. Princ. bus. addr.: Org. filed with Secy. of State of N.Y. SSNY has been designated as an SSNY shall mail process to Ore whom process against it may be 473 West End Ave., Ste. 8C, NY, NY (SSNY) on 2/11/10. Office location: agent upon whom process may be Management LLC, 936 Fulton St served and shall mail process to: 10024. Sec. of State designated New York County. SSNY designated served and shall mail a copy of any Comm. A, Bklyn, NY 11238. Purpose c/o CT Corporation System, 111 8th agent of LLC upon whom process as agent of LLC upon whom process process to the principal business any lawful purpose. Ave., NY, NY 10011, regd. agent against it may be served and shall against it may be served. SSNY shall address: 330 E 46 St., 11G, NY, NY upon whom process may be served. mail process to: c/o Geringer & Dolan mail process to: 10 E. 13th St., 5F, 10017. Purpose: any lawful act. DE addr. of LLC: 1209 Orange St., LLP, 5 Hanover Sq., 3rd Fl., NY, NY New York, NY 10003. Purpose: any Notice of Formation of 677 Lexington Wilmington, DE 19801. Arts. of Org. 10004, Attn: Harold I. Geringer. lawful activity. Acquisition, LLC. Arts. of Org. filed filed with DE Sec. of State, 401 Purpose: any lawful activity. NOTICE OF FORMATION of Stuntbox, with Sec. of State of NY (SSNY) on LLC. Arts of Org filed with the Secy 5/1/02. Office location: NY County. Federal St., Dover, DE 19901. Notice of Qualification of Blue Light Purpose: any lawful activity. of State of New York (SSNY) on SSNY designated as agent of LLC Notice of Formation of PECK SHEB Capital Management, LLC. Authority 2/23/10. Office location: NY County. upon whom process against it may LLC. Arts. of Org. filed with Secy. of filed with NY Dept. of State on SSNY has been designated as an be served and shall mail process to: Notice of Formation of JAC AND State of NY (SSNY) on 08/07/09. 4/13/10. Office location: NY County. agent upon whom process may be c/o Anderson & Rottenberg, P.C., MARI LLC. Arts. of Org. filed with Office location: NY County. Princ. LLC formed in DE on 3/2/10. NY served and shall mail a copy of any 369 Lexington Ave., NY, NY 10017, Secy. of State of NY (SSNY) on office of LLC: c/o Brian Shebairo, Sec. of State designated as agent of process to the principal business Attn: Charles S. Rich, Esq. Purpose: 12/15/09. Office location: NY 113 St. Marks Pl., NY, NY 10009. LLC upon whom process against it address: 310 E. 44th Street, Apt M, NY, any lawful activity. County. Princ. office of LLC: 22 SSNY designated as agent of LLC may be served and shall mail NY 10017. Purpose: any lawful act. River Terr., Apt. 17P, NY, NY 10282. upon whom process against it may process to the principal business SSNY designated as agent of LLC be served. SSNY shall mail process address: 43 Crosby St., Ste. 4, NY, Name: I.W.E., LLC. Art Of Org. Filed upon whom process against it may to the LLC at the addr. of its princ. NY 10012. DE address of LLC: 615 Notice of Formation of AVID Holdings Sec. Of State of NY 11/23/2009. Off. be served. SSNY shall mail process office. Purpose: Any lawful activity. S. DuPont Hwy., Dover, DE 19901. LLC. Arts. of Org. filed with Secy. of Loc.: NY Co. SSNY designated as to the LLC at the princ. office of the Arts. of Org. filed with DE Sec. of State of NY. (SSNY) on 2/23/10. agent upon whom process against it LLC. Purpose: Any lawful activity. State, 401 Federal St., Dover, DE Office location: NY County. SSNY may be served. SSNY to mail copy NOTICE OF FORMATION of SOLA 19901. Purpose: investment fund. designated as agent of LLC upon of process to I.W.E., LLC, c/o 4EON REALTY, LLC. Arts of Org filed with whom process against it may be Inc., Empire State Bldg., NY, NY BEIGE CAPITAL LLC Arts. of Org. the Secy of State of New York (SSNY) served. SSNY shall mail process to: 10018. Purpose: Any lawful act. filed with NY Sec. of State (SSNY) on 4/5/10. Office location: NY County. NAME OF LLC: J E - FACE LLC The LLC, c/o Rosemarie Ottomanelli, 12/3/2009. Office in NY Co. SSNY SSNY has been designated as an ARTICLES OF ORG. FILED DEPT OF 385 First Ave., Apt. 10F, NY, NY design. agent of LLC upon whom Name: 58 WEST 70th STREET, LLC agent upon whom process may be STATE OF NY ON 04/08/10. OFFICE 10010. Purpose: any lawful activity. process may be served. SSNY shall served and shall mail a copy of any LOCATION: NY COUNTY. NY SECY. Art. Of Org. Filed Sec. Of State of NY mail process copy to: 1 Penn Plaza, process to the principal business OF STATE DESIGNATED AS AGENT 02/04/10. Off. Loc.: New York Co. Ste. 4501, NY, NY 10119. Purpose: address: 25 E. 11 St., Apt. 3, NY, NY OF LLC UPON WHOM PROCESS NOTICE OF FORMATION of Janeric SSNY designated as agent upon any lawful activity. 10003. Purpose: any lawful act. AGAINST IT MAY BE SERVED. Fashions LLC. Arts of Org filed with whom process against it may be SECY. OF STATE SHALL MAIL A CC the Secy of State of New York (SSNY) served. SSNY to mail copy of process TO: J. CATTAN, MEMBER AT 37 W. on 10/9/09. Off loc: NY Cty. SSNY has to THE LLC, Attn: Ray Longwell, 58 Notice of Qualification of Warburg Notice of Qualification of Bank of 37TH ST., NEW YORK, NY 10018. been designated as an agent upon W 70th St., New York, NY 10023. Pincus (Callisto) Private Equity X, America Capital Advisors LLC. whom process may be served and Purpose: Any lawful act or activity. L.P. Authority filed with NY Dept. of Authority filed with NY Dept. of State shall mail a copy of any process the State on 3/11/10. Office location: NY on 4/20/10. Office location: NY NOTICE OF FORMATION OF LIMIT- principal bus. add: 214 W. 39th St, 300, Notice of Qualification of WRY County. LP formed in DE on 3/9/10. County. Princ. bus. addr.: 100 Federal ED LIABILITY COMPANY. NAME: NY NY 10018. Purpose: any lawful act. NY Sec. of State designated as St., Boston, MA 02110. LLC formed REALM CAPITAL MANAGEMENT DEVELOPER LLC. Authority filed with agent of LP upon whom process in DE on 7/29/98. NY Sec. of State LLC. Application for Authority was Secy. of State of NY (SSNY) on against it may be served and shall designated as agent of LLC upon filed with the Secretary of State of NOTICE OF FORMATION of Little 04/20/10. Office location: NY County. mail process to the principal busi- whom process against it may be New York (SSNY) on 04/08/10. The Brown NYC Lexington LLC .Arts of LLC formed in Delaware (DE) on ness addr.: c/o Warburg Pincus LLC, served and shall mail process to: LLC was originally filed with the Org filed with the Secretary of State 03/26/10. Princ. office of LLC: 60 450 Lexington Ave., NY, NY 10017, c/o CT Corporation System, 111 8th Secretary of State of Delaware on of New York (SSNY) on 4/1/10. Columbus Circle, NY, NY 10023. Attn: General Counsel. DE addr. of Ave., NY, NY 10011, regd. agent 04/05/10. Office location: New York Office location: NY County. SSNY SSNY designated as agent of LLC LP: c/o The Corporation Trust Co., upon whom process may be served. County. SSNY has been designated has been designated as an agent upon whom process against it may be 1209 Orange St., Wilmington, DE DE addr. of LLC: The Corporation as agent of the LLC upon whom upon whom process may be served. served. SSNY shall mail process to 19801. Name/addr. of genl. ptr. Trust Co., 1209 Orange St., process against it may be served. SSNY shall mail a copy of any c/o Corporation Service Co. (CSC), 80 available from NY Sec. of State. Wilmington, DE 19801. Arts. of Org. SSNY shall mail a copy of process to process to: 1838 Second Ave. #136, State St., Albany, NY 12207. DE addr. Cert. of LP filed with DE Sec. of filed with DE Sec. of State, 401 the LLC, 330 Madison Avenue, 36th NY, NY 10128. Principal business of LLC: c/o CSC, 2711 Centerville State, Townsend Bldg., Dover, DE Federal St., Dover, DE 19901. Floor, New York, New York 10017. address: Coffee Shop, NY, NY 10028. Rd., Wilmington, DE 19808. Arts. of 19901. Purpose: any lawful activity. Purpose: any lawful activity. Purpose: For any lawful purpose. Purpose: any lawful act. Org. filed with Secy. of State of DE, John G. Townsend Bldg., Federal and Duke of York Sts., Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of P&A Film Fund LLC. Authority filed with NY Dept. of State on 4/8/10. Office location: NY County. Princ. bus. addr.: 60 S. 6th St., Ste. 3900, Minneapolis, MN 55402. LLC formed in DE on 3/19/10. NY Sec. of State designated as agent of LLC upon whom process against it may be served and shall mail process to: c/o CT Corporation System, 111 8th Ave., NY, NY 10011, regd. agent upon whom process may be served. DE addr. of LLC: The Corporation Trust Co., 1209 Orange St., Wilmington, DE 19801. Arts. of Org. filed with DE Sec. of State, 401 Federal St., Dover, DE 19901. Purpose: any lawful activity.

May 10, 2010 | Crain’s New York Business | 23 20100510-NEWS--0024-NAT-CCI-CN_-- 5/6/2010 7:28 PM Page 1

FOR THE RECORD

Taubin of Studley represented the $40,412,500. It now indirectly holds executive and executive director, tenant in the transaction. L&L Holding 13,636,800 shares. exercised options on 37,500 shares of ABOUT THIS SECTION Co. was represented in-house by David common stock at $38.07 on April 23, in G Coach Inc. (COH) FOR THE RECORD is a weekly listing of information from the public record that Berkey, along with Howard Fiddle and a transaction worth $1,427,625. On the Evan Haskell of CB Richard Ellis. The Reed Krakoff, president and executive same day, he sold 37,500 shares at can help businesspeople in the New York area find opportunities, potential asking rent was not disclosed. creative director, exercised options on $56.21 in a transaction worth new clients and updates on competitors. 621,646 shares of common stock at $2,107,763. He now directly holds To ask questions or get more information on this section, contact Denise G Jones Day signed a 16-year, 44,034- prices ranging from $32.37 to $34.84 on 122,135 shares. Southwood at [email protected]. square-foot lease at 220 E. 42nd St.,a April 22, in a transaction worth 37-story, 1.1 million-square-foot $20,616,682. On the same day, he sold G Becton Dickinson and Co. (BDX) building owned by SL Green Realty 67,796 shares at prices ranging from Henry P.Becton, lead director, sold Corp. The law firm will take up part of $42.50 to $42.57 in a transaction worth 47,370 shares of common stock at the second floor of the building. $2,884,827. He now directly holds $76.54 on April 22, in a transaction BANKRUPTCIES construction of a bicycle and pedestrian Mitchell Steir and David Goldstein of 100,476 shares. worth $3,625,700. He now indirectly waterfront path in Soundview Park in Studley represented Jones Day in the holds 1,330,980 shares. The following listings are selected from the the Bronx. A prebid meeting has been transaction, while David M. Kaufman Jerry D. Stritzke, co-president and chief most recent available filings by companies scheduled for 3 p.m. on May 13 at the represented the landlord in-house. The operating officer, exercised options on G J.P. Morgan Chase & Co. (JPM) seeking bankruptcy protection in the Olmsted Center’s design conference asking rent was $45 per square foot. 110,001 shares of common stock at Charles W. Scharf, chief executive of Southern and Eastern Districts of New room in Flushing Meadows Corona prices ranging from $26.21 to $29.75 on retail financial services, exercised options York. Information was obtained from U.S. Park, Queens. For information, contact G Metro Creative Graphics signed a 10- April 26, in a transaction worth on 100,000 shares of common stock at Bankruptcy Court records available on Juan Alban at (718) 760-6771 or year, 14,970-square-foot renewal at 519 $3,178,129. On the same day, he sold $24.95 on April 21, in a transaction Public Access to Court Electronic Records. [email protected]. Eighth Ave., a 26-story, 355,000-square- 19,740 shares at prices ranging from worth $2,495,000. Listings are in alphabetical order. foot office building owned by the $43.35 to $43.49 in a transaction worth G Human Resources Administration Kaufman Organization. The advertising $857,702. He now directly holds 16,784 G WHX Corp. (WXCO) G 2300 XTRA Wholesalers Inc. Requests competitive sealed bids by 3 agency will remain on the 18th floor. shares. Steel Partners purchased 385,773 shares 2300 Randall Ave., Bronx p.m. on June 14 for drywall taping and Michael Frantz of Newmark Knight of common stock at prices ranging from Filed for Chapter 11 bankruptcy plastering. A mandatory prebid Frank represented the tenant, while Todd Kahn, senior vice president, $4.61 to $4.98 between April 15 and protection on April 29. The filing cites conference will be held at 10 a.m. on Barbara Raskob and Steven Kaufman general counsel and secretary, exercised April 22, in a transaction worth estimated liabilities of $100,001 to May 19 in the seventh-floor conference represented the landlord in-house. The options on 45,001 shares of common $1,823,749. It now indirectly holds $500,000 and estimated assets of room at 180 Water St. For questions asking rent was $32 per square foot. stock at prices ranging from $26.21 to 5,220,360 shares. $1,000,001 to $10 million. Among the regarding this bid, contact Donna $32.00 on April 26, in a transaction creditors with the largest unsecured Wilson at (212) 331-3524 or G Jesup & Lamont Securities signed a worth $1,372,480. On the same day, he G John Wiley & Sons Inc. (JW.A) claims is Goldberg Weprin Finkel [email protected]. seven-year, 14,486-square-foot lease at sold 7,205 shares at prices ranging from William J. Pesce, president, chief Goldstein, owed $50,000. 623 Fifth Ave., a 36-story, 350,878- $43.50 to $43.62 in a transaction worth executive and director, exercised options G School Construction Authority square-foot office building owned by $313,717. He now directly holds 4,896 on 33,000 shares of common stock at G 88 Japanese Food Supply Inc. Seeks competitive sealed bids by 12 p.m. Cohen Brothers Realty Corp. Silvio shares. $25.32 between April 21 and April 22, 134-03 35th Ave., Queens on May 18 for video surveillance Petriello and Brad Needleman of CB in a transaction worth $835,560. Filed for Chapter 7 bankruptcy cameras at four schools in Brooklyn and Richard Ellis represented the tenant, G Omnicom Group Inc. (OMC) During the same period, he sold 33,000 protection on April 26. The filing cites Queens. For more information while David Nevins, Adam Karafiol, Daryl D. Simm, chairman and chief shares at prices ranging from $42.54 to estimated liabilities of $50,001 to regarding this solicitation, contact Steven Lambert and Joel Herskowitz executive of Omnicom Media Group, $42.88 in a transaction worth $100,000 and estimated assets of $0 to Rookmin Singh at (718) 752-5843 or represented the landlord in-house. The exercised options on 258,334 shares of $1,409,440. He now directly holds $50,000. Among the creditors with the [email protected]. asking rent was not disclosed. common stock at prices ranging from 1,007,240 shares. largest unsecured claims are Dockside $23.40 to $31.18 on April 22, in a Fresh, owed $57,340.73; and Kinton GOODS AND SERVICES G J.P.Morgan Chase signed a 15-year transaction worth $6,304,188. On the Eric A. Swanson, senior vice president Inc., owed $22,414. G City University of New York lease for 11,200 square feet of space at same day, he sold 258,334 shares at of Wiley Blackwell, sold 30,000 shares Requests competitive sealed bids by 2 530 Fifth Ave., a 26-story, 414,000- prices ranging from $42.11 to $42.21 in of common stock at $42.78 on April G American Mortgage Acceptance Co. p.m. on June 2 to provide all labor, square-foot building owned by the a transaction worth $10,900,370. He 21, in a transaction worth $1,283,340. 625 Madison Ave. materials and equipment to replace Moinian Group. The banking giant will now directly holds 32,245 shares. He now directly holds 107,927 shares. Filed for Chapter 11 bankruptcy boiler tubes. A mandatory prebid site occupy 6,700 square feet of ground-floor protection on April 26. The filing cites visit will be held at 10 a.m. on May 20. space and 4,500 square feet on the lower G MSC Industrial Direct Co. (MSM) Bonnie E. Lieberman, senior vice estimated liabilities of $100,000,001 to For further information, contact Kevin level. David Green of Cushman & Mitchell L. Jacobson, chairman, sold president of higher education, exercised $500 million and estimated assets of Carmine at (718) 319-7965 or Wakefield represented the tenant in the 119,894 shares of common stock at options on 27,000 shares of common $1,000,001 to $10 million. Among the [email protected]. transaction, while Jeff Winick, Lori prices ranging from $56.43 to $56.45 stock at $23.40 on April 21, in a creditors with the largest unsecured Shabtai and Darrell Rubens of Winick between April 22 and April 23, in a transaction worth $631,800. On the claims are C-III Capital Partners, owed G Department of Education Realty represented the landlord. The transaction worth $6,766,259. He now same day, she sold 27,000 shares at $79,876,500; and Taberna Preferred Requests competitive sealed bids by 5 asking rent was not disclosed. directly holds 110,120 shares. $42.99 in a transaction worth Funding, owed $25,000,000. p.m. on May 12 for a library book $1,160,730. She now directly holds detection system. To obtain bid RETAIL David Sandler, president, chief 139,236 shares. G Jude Thaddeus Partners 1 Inc. documents, send an e-mail to G Skechers USA signed an 8,700- 18 Grace Drive, Old Westbury, L.I. [email protected] with bid square-foot lease at the Gateway Center Filed for Chapter 11 bankruptcy number (#Z1556040) and title in the Mall near Yankee Stadium in the Bronx, protection on April 26. The filing cites subject. For more information, e-mail including 140 feet of frontage on River DEALS ROUNDUP estimated liabilities of $1,000,001 to [email protected] with the Street next to the mall’s entrance. Gene $10 million and estimated assets of bid number and title in the subject line. Spiegelman and Leslie Mayer of TRANSACTION SIZE $1,000,001 to $10 million. Among the Cushman & Wakefield represented the COMPANY (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE creditors with the largest unsecured G Department of Health and Mental tenant, while Peter Ripka of Ripco Real claims are Paul Todd Inc., owed $6,500; Hygiene Estate represented owner The Related NBC Universal Inc. $4,000.0 Not disclosed GCI and Waste Management, owed $400. Seeks competitive sealed bids by 11 a.m. Companies. The asking rent was $75 a (Manhattan) on May 10 to provide year-round hangar square foot. Emmis Communications Corp. $562.8 Alden Global Capital (Manhattan), FB M&A storage and professional maintenance unknown majority stake GOVERNMENT CONTRACT services for one helicopter. For OTHER Lease portfolio of 4,000 $230.0 Greenbrier Cos., FB M&A OPPORTUNITIES additional information, contact Waheed G Restaurateur Ed Martinson signed a railcars WL Ross and Co. (Manhattan) Bajwa at (212) 676-2018 or 20-year, 5,000-square-foot lease at 45 E. First Michigan Bancorp Inc. $200.0 WL Ross and Co. (Manhattan) GCI Following are selected contract [email protected]. 30th St. Peter Braus and Peter Levitan The E.W. Scripps Co., $175.0 Iconix Brand Group Inc. SB M&A opportunities recently announced by New of Sierra Realty Corp. represented both United Media licensing business (Manhattan) York City agencies.To learn how to sell the tenant and landlord 43 Park Owners Philadelphia Newspapers $137.7 Credit Suisse Asset Management FB M&A goods and services to city government, visit REAL ESTATE DEALS Group. Mr. Martinson’s new restaurant (Manhattan), Angelo Gordon & Co. (Manhattan), www.nyc.gov/selltonyc. For a searchable is scheduled to open this summer. The Venor Capital Management (Manhattan), database of current procurement notices, Companies that would like to have details asking rent was $70 per square foot. Alden Global Capital (Manhattan) visit www.nyc.gov/cityrecord. Listings are of their recent transactions appear in these Move Inc. portfolio of $109.8 SecondMarket Inc. (Manhattan) SB M&A alphabetical by category and department. listings should e-mail descriptions auction rate securities following this format to STOCK TRANSACTIONS Jolly Hotels St. Ermin’s BV $98.6 Angelo Gordon & Co. (Manhattan), FB M&A CONSTRUCTION SERVICES [email protected], with Amerimar, Gracemark Investments G Department of Environmental Protection “Real estate transaction” in the subject line, Following are recent insider transactions at Tremor Media Inc. (Manhattan) $40.0 Canaan Partners, Draper GCI Seeks competitive sealed bids by 11:30 or enter them online at New York’s largest publicly held companies Fisher Jurvetson, MeriTech Capital a.m. on June 8 for the demolition of the crainsnewyork.com/submitadeal. Deals filed with the Securities and Exchange Partners, Triangle Peak Partners Inc., Armonk bowling alley in the town of are listed in order of square footage. Commission by executives and major SAP Ventures North Castle in Westchester County. A shareholders. Listings are in order of Affimed Therapeutics AG $26.5 Life Sciences Partners BV, GCI mandatory prebid conference will be OFFICE transaction value.The information was OrbiMed Advisors (Manhattan), held at 11 a.m. on May 25 at 29 Old G Tiffany and Co. has signed a 15-year, obtained from Thomson Reuters. BioMedinvestor AG, Novo Nordisk Post Road. For questions, contact Renee 260,000-square-foot lease at 200 Fifth Biotech Fund, Aeris Capital AG Danboise at (845) 340-7877 or Charlie Ave., a 14-story, 850,000-square-foot G New York Times Co. (NYT) Selected deals announced for the week ended May 1 involving companies in metro New York. Laing at (845) 340-7218. building owned by L&L Holding Co. Harbinger Capital Partners Master FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing The jeweler has leased four and a half Fund I Ltd. sold 3,250,000 shares of shares of a company with the participation of a financial buyer. GCI: Growth capital investment G Department of Parks and Recreation represents new money invested in a company for a minority stake. SB M&A: Strategic buyer floors to serve as its new corporate common stock at prices ranging from M&A represents a minority or majority acquisition of existing shares of a company without the Requests competitive sealed bids by headquarters. Mitchell Steir, Matt $12.30 to $12.55 between April 20 and participation of a financial buyer. source: capitaliq 10:30 a.m. on May 28 for the Barlow, David Goldstein and Greg April 21, in a transaction worth

24 | Crain’s New York Business | May 10, 2010 20100510-NEWS--0025-NAT-CCI-CN_-- 5/7/2010 8:23 PM Page 1

New York City Tea-Off

Continued from Page 1 land Tea Party, whose base consists ty are saying, ‘It’s on.’ ” of an e-mail list of 2,000 people,will Even to New Yorkers dismayed hold a sold-out candidates forum by the current state of economic and May 13. Republican candidates for political affairs, the Tea Party pro- governor, Senate and Mr. McMa- tests against government-led bail- hon’s congressional seat are plan- outs, economic stimulus and health ning to participate. care reform may have seemed like flyover-country drama unfolding on Arm’s length Fox News. But as midterm elections “we are putting upcandidates who approach, a small yet energetic and are aligned with the political aspira-

increasingly well-organized Tea tions and political concerns of the landov Party movement is gaining a toe- Tea Party folk,” says Mr. Cox. They RANDOM SEARCH: New York Police officers check bags at the Times Square subway station. hold in New York City. include Democrat-turned-Repub- Tea Party 365 is based in Man- lican gubernatorial candidate Steve buck ennis hattan,while a more informal group FAN BASE: David Webb and Wave Chan’s Tea Levy, who is planning to participate is growing in Staten Island. Mem- Party 365 has gained 6,500 Facebook fans. in the Staten Island Tea Party forum. bers say Tea Party activists are also Other Republicans whom Mr. Times Square mobilizing in Brooklyn, Queens Cox feels will earn the support of and the Bronx. great guy, a gentleman and a very Tea Party activists going forward are Continued from Page 1 for the police,” says Tim Tompkins, Like their brethren beyond the smart man,” says Frank Santarpia, Chris Collins, who became Erie tutes and drug dealers that once president of the business improve- five boroughs, they have aspirations the co-organizer of the Staten Is- County Executive on a campaign plagued the district, but with more ment district. that are as outsized as their anger. land Tea Party.“But I have to look at slogan of “elect a chief executive,not than 350,000 visitors a day passing In late February, the Times Tapping into what they say is broad the bigger picture. He is a part of a chief politician”; Westchester through the Crossroads of the Square Alliance met with NYPD discontent, they hope to vote out of what enables Nancy Pelosi to be the County Executive Rob Astorino; World, businesses must take extra Commissioner Raymond Kelly to office tax-and-spend legislators at Speaker.” and New Jersey Gov.Chris Christie. precautions. Most hotels, restau- address the business community’s the city, state and national levels. He thinks Democrats have pulled Mr.Cox disavows formal ties be- rants and merchants in Times concerns following the street vendor Local Tea Party membership the country “so far leftward that the tween the GOP and Tea Partiers and Square invest more in security— shooting. He told members that the cuts across racial and economic silent majority is finally speaking.” is sensitive to charges that Republi- whether it’s guards, extra cameras or department is committed to in- lines, with the ranks broadly reflect- A spokeswoman for Mr.McMa- cans are co-opting the movement. emergency plans—than do busi- stalling a ring of security cameras in ing the diversity of the city.Typical- hon’s campaign says he has a 30- But informal links abound. Thomas nesses in other areas of the city. Law the neighborhood—to be paid for ly, they’re fiscal conservatives who point lead over his Republican J. Basile, now executive director of enforcement agencies spend more with Homeland Security funds— believe in free markets and small challengers. “Clearly, there is a dis- the state Republican Party, co- resources there as well. similar to the plan for lower Man- government—not to be confused enfranchised portion of the elec- founded Tea Party 365 with David “It’s the price of doing business,” hattan, which is further along. with some of the celebrity social Webb,a black radio host and Repub- says Zane Tankel, who operates the He also told the businesses that conservatives that have latched on lican activist. Mr. Basile, who favors Applebee’s Neighborhood Grill & the department is reviewing Times to the movement. ‘It’s not a fringe cuff links and pocket squares,says he Bar on West 42nd Street between Square parking regulations, such as “My co-leader is not a fan of ended his involvement with Tea Par- Broadway and Eighth Avenue. where vehicles can stop and stand Sarah Palin,” says Lorraine Scanni, movement. It’s ty 365 after his GOP appointment. Mr.Tankel employs three securi- temporarily and whether they may who helps runs the Staten Island Tea Tea Party 365 established itself ty guards at his restaurant on week- do so in front of high-profile build- Party from her kitchen table. “We really the tip of last year as a 501(c)(4) advocacy ends. Other eateries in the area, in- ings. Most of the regulations, says have the same feelings about Glenn group, so it could one day soon form cluding Dave & Buster’s and ESPN Mr. Tompkins, are based on traffic- Beck.I can’t watch him.I know what the iceberg’ a political action committee and Zone, also hire security guards. flow needs determined by the De- he’s saying is true. I just don’t want lobby state officials. It now has Property damage and business partment of Transportation. to sit there and be harangued by it.” 6,500 Facebook fans, and it’s a interruptions—like the bomb Like many Tea Party members, founding member of the National scare—add to the expense. The Ironclad contingency plans Mr.Chan had never before been po- Tea Party Federation—a coalition Ruby Tuesday on Seventh Avenue to manage the crowds, businesses litically active. He’s never even vot- torate that feels the Tea Party repre- of groups trying to focus the move- at West 41st Street has yet to repair must have ironclad plans in place for ed. Ms. Scanni is a political neo- sents them,” she says. “But in terms ment’s political force. the long crack in its revolving glass when things go wrong. Several years phyte, too. of this district,the poll shows there’s Tea Party 365 members are en- door sustained on Easter night— ago, the Marriott Marquis and the no effect at all.” joying being taken seriously. Last wreaking havoc in the neighbor- Crowne Plaza hotels inked an agree- Gaining attention The state Republican party is month, about 50 people attended a hood on the holiday has become an ment to take in each others’guests in yet her group of Tea Partiers has paying close attention. Edward get-together for Tea Party 365 at the annual right of passage for the event of an emergency evacua- gained the attention of Republican Cox, the state GOP’s chairman, be- back of Tío Pepe, a Spanish-Mexi- teenagers. tion at either property.May 1 was the candidates and Staten Island Rep. lieves that even in a liberal state like can restaurant on West Fourth Michael Hirsch, general first time the hotels made Michael McMahon, a Democrat in New York, the Tea Party has the Street.Over beers,chips and salsa,it manager of the Ripley’s Be- use of the arrangement a swing district. power to rally opposition against became clear that for that evening, lieve It or Not museum on 90 when some 300 Marriott Members organized their inau- Democrats in a year hostile to in- at least, they could check their out- West 42nd Street, says that SECURITY guests were unable to return CAMERAS have gural tax-day protest last year in front cumbents. A Siena College poll last rage at the door. tristate area visitors were been installed to their rooms because the of Mr. McMahon’s office, and sub- month showed that one in five New Whatever anger and helpless- scarce last week. “Our num- in Times Square police had blocked off access sequently met with him to discuss York voters supports the Tea Party. ness they had felt watching Demo- bers were down,” says Mr. since Sept. 11 to the hotel. health reform. Although he voted “It’s not a fringe movement,”says crats run roughshod over their val- Hirsch, who blames the de- “We opened our ball- against the health care bill, Mr. Mr. Cox. “It’s really the tip of the ues had dissipated. They had each cline on the bomb incident. room to them,” says Crowne Plaza McMahon is unlikely to win Tea iceberg.” other now.They were part of some- Of course,businesses put up with General Manager Michael Silber- Party members’support because he’s Tea Party activists don’t plan to thing bigger than themselves. Even the challenges for good reason—the stein. “And we kept some cooks in part of the Democratic majority. officially endorse candidates, but in the heart of liberal New York,that enormous volume of customers. the kitchen beyond their shifts.” “I think the congressman is a they will vet them. The Staten Is- was enough to make them smile. The Applebee’s in the district, for Another hotel set to open in July, example, generates nearly $14 mil- the InterContinental New York lion in annual revenues and is the Times Square, will have a perma- chain’s highest-grossing eatery. nent security station in its lobby. “The developer built it that way Chasing the grail: ad rate parity NYPD reassures business leaders to be part of the design of the build- last monday,New York Police De- ing,” says General Manager Drew Continued from Page 2 their biggest shows, which are in- something that has never happened partment officials reassured some Schlessinger.“It was a smart move to to change their perceptions of cable. creasingly competitive with what before, according to a report last 100 jittery business executives by re- have that area set aside so there is a Some broadcast executives argue the big four networks put on. week by Morgan Stanley. viewing safety measures they have phone and other equipment there.” that it may be especially hard to nar- Overall, as the negotiations be- implemented in the district since The Times Square Alliance even row the gap this year because,for the Ratings go down; ad rates go up gin, the argument will be that audi- Sept. 11, 2001, including a network has a contract with a security com- first time, cable has lost momentum cable’s pricing may even get a ences don’t see a difference between of nearly 90 security cameras and pany that walks a bomb-sniffing while broadcast’s erosion has halted. boost from recent ratings erosion at the best of broadcast and the best of numerous emergency drills. The dog around the district twice a week. Total prime-time viewership is up top networks like USA and TBS. cable, so why should advertisers? anxious mood at that gathering— While the May 1 bomb never 1% this season for broadcast and Advertisers have to buy more spots “We’re all going to be pushing the annual meeting of the Times detonated, few doubt that it will be down 1% for cable, according to an to reach the same number of people, those original products very hard,” Square Alliance—was also mixed the last attempt. analysis by CBS of Nielsen data. putting pressure on ad inventory. says Mark Miller, senior vice presi- with relief, because the latest situa- “Times Square is a magnet for But cable executives say that the Rate increases for cable could there- dent of ad sales for NBC Universal tion was defused so quickly. people,”says Mr.Tankel.“And that’s ratings dip has had little effect on fore exceed those for broadcast, cable entertainment. “There was sustained applause good news and bad news.”

May 10, 2010 | Crain’s New York Business | 25 20100510-NEWS--0026-NAT-CCI-CN_-- 5/7/2010 7:07 PM Page 1

Q. You headed the Alliance for Downtown New York.Today there is considerable concern about NY’s agent how the area will fare as some large tenants give Moving Hudson Square up space and millions of square feet are added at the WTC. What’s your prognosis? Continued from Page 3 better than many others.At the end of the first of change A. I think the decision we made in 1995 to ex- ture together at Hudson Square,” says Steven quarter, the vacancy rate in Hudson Square pand the residential population has served Spinola, president of the Real Estate Board of was 12.5%, up only slightly from 11.9% in the Continued from Page 3 downtown really well. As a result of that, I New York.“Trinity is losing someone very valu- corresponding period in 2008—though it’s achievement? think the future is bright. I have faith in the able.’ still above the 10% average for midtown south, A. The redevelopment was an important sym- area long-term as a major financial center,giv- At this point, the church is still in the ini- according to Cushman & Wakefield Inc. bol of the city’s resurgence. It strengthened and en its incredible infrastructure and population tial stages of a search to find a new overseer for Meanwhile, asking rents at Trinity are be- enhanced the theater district, and it opened up mix. Investment is still being made. an empire that totals 6 million square feet in tween $35 and $40 a square foot—down from the West Side.You wouldn’t have had the devel- It is impossible to say where downtown will 18 buildings. a year ago. opment west, where the [midtown] office core be one or two years from now, but 10 years Mr.Weisbrod came to Trinity after a distin- is now expanding.Times Square was the barri- from now it will be a very exciting place. guished career in public service. He was the Mother of invention er that prevented that westward development. original head of the New York City Economic as times got harder, Trinity got more cre- Q. Having spent a good deal of your career Development Corp. and the Alliance for ative. Last year, it worked with the city and Q. There are several major development trying to quicken the pace of economic Downtown New York. Polytechnic Institute of New York University projects—from Willets Point in Queens to the development in the city, what recommendations When he joined Trinity, his main task was to open a 16,500-square-foot incubator for World Trade Center and Hudson Yards in would you make to those trying to do that today? to establish Hudson Square’s new identity as an tech firms at its 160 Varick St. property. Sim- Manhattan—that are going on now. What A. I think the mayor and the Economic De- off-price office neighborhood. It was a trans- ilarly, Trinity temporarily donated an entire lessons can they draw from Times Square? velopment Corp. are doing an excellent job. formation that had begun in 1983, when Trin- vacant block it owns to the Lower Manhattan A. There aren’t easily transferable lessons,ex- The mayor is rightly focusing on keeping the ity began converting buildings used for decades Cultural Council for use as an art space. cept for one.These are massive projects.They quality of life high. The problem is that there as warehouses and printing factories into office “Trinity is receptive to new ideas,” says are area game changers, and game changers is a limit on resources, and [economic devel- space for which it could charge higher rents. Ellen Baer, president of the Hudson Square take a long time. They also require continu- opment] is especially difficult at this time, “I knew I wanted to create a multi-use com- Connections Business Improvement District. ity: a political continuity,a management con- when there are significant pressures on those munity,” says Mr. Weisbrod. “I knew that the Mr. Weisbrod is convinced that for Hud- tinuity and a continuity of public support. resources. We provide more money to Wash- future of this neighborhood would be in cre- son Square to reach its full potential, the next When you take a longer view, projects turn ington and Albany than we get back.That lim- ative companies—the kind that add intellec- step is to add more residential development. out better, and they fulfill their missions bet- its what the city can do. tual value [and jobs].” That could lure retailers and restaurants and ter. Times Square evolved over three mayors, To start the process, he turned to his make the neighborhood a place that would three governors, different personality types, Q. What do you plan to do next? Rolodex. He used his connections to rope in command even higher office rents. different ideological bents.But they all stayed A. I made a promise to myself that I wouldn’t the Solomon R.Guggenheim Foundation and That will not be easy, as an earlier attempt with it. decide quickly.The nine-month transition [to WNYC—tenants that helped to put the area shows.This year,Trinity took 330 Hudson St. January] is to make sure it can be smooth for on the map for creative companies. back from an outside developer whose plans to Q. How can continuity be maintained through Trinity and give me time to think about what Those initial converts were followed by build a mixed-use office and hotel fell flat. different administrations? Was Times Square I want to do. such companies as CBS Radio and Deluxe Despite that misstep, Mr. Weisbrod hopes just lucky? Entertainment, lured to Hudson Square with to have at least part of the neighborhood re- A. In development projects, new leaders give Q. Do you want to run for office? the promise of joining a like-minded commu- zoned to allow for residential development. great weight to the efforts of their predeces- A. Absolutely not. nity of tenants—and paying rents far below “It’s only natural that they would want res- sors. Very few large-scale efforts have been those of midtown. idential, which will organically result in a bet- killed by successors. They understand that Q. What’s been your biggest accomplishment? In the past two years,the diverse tenant ros- ter class of retail,” says Richard Warshauer, continuity is really important and that they’ll A. I have done work that has been intellectu- ter that Mr. Weisbrod built up has helped senior managing director at Colliers Interna- be launching projects of their own. ally stimulating and socially useful. Trinity Real Estate to weather the recession tional New York.

mately settled for $30,000,which Mr. Brooklyn who paid vendors with gift Metter paid by refinancing the mort- cards he’d purchased,the government Feds wring Spongetech claims gage held in his spouse’s name on his says, and Mr. Moskowitz allegedly Greenwich home. invented a fake lawyer named David Continued from Page 1 Moskowitz, faces the same criminal collapsed subsequently,but when Mr. Mr.Townsend’s case was just one Bomart who drafted “opinions” ap- al bankruptcy. Last Wednesday, and SEC charges. His lawyer Townsend wanted out, First Cam- of several to hit Mr. Metter at about proving their actions. however, marked the first time he wouldn’t comment.) bridge wouldn’t let him leave. the same time.An arbitrator award- The hype worked. Spongetech’s entered one as a defendant in a crim- Mr. Metter and Spongetech “I would speak to Metter, and ed another cheated First Cam- stock,which traded for pennies,quin- inal case. Dressed in a blue blazer, have also contested the charges he’d say, ‘Just stick with it; it’ll get bridge client $108,000 and granted tupled in value, and Mr. Metter and open-collared shirt and rumpled brought by the sports teams. In ad- better,’ but it never did,” recalls Mr. $250,000 to another defrauded cus- Mr. Moskowitz sold 2.5 billion khakis, he quietly responded, “Yes, dition, he and his company last Townsend, who filed a fraud claim tomer at Mr. Metter’s next firm, shares, the government says, using a sir” and “Yes,Your Honor” as a fed- month sued the New York Post and in 1998 and was awarded $457,000 Madison Capital Markets. In April portion of their millions in profits to eral magistrate asked if he under- its reporter who wrote a series of ar- by an arbitrator. 2001, a month after a fourth angry buy ads with the Yankees and other stood his rights. The judge granted ticles questioning its sponge sales. But Mr.Metter told his client that investor sought $550,000 in dam- teams to further raise their company’s his request that he be allowed to trav- Before getting into the sponge he had no intention of paying the ages, Mr. Metter filed for bankrupt- profile. At Spongetech’s peak last el to Lancaster, Pa., this weekend to business, Mr. Metter worked on award, according to a suit Mr. cy. In his petition, he listed $30,000 summer, Mr. Metter was at his hard- attend his son’s college graduation. Wall Street for at least 14 years, ac- Townsend filed in federal court in in assets and $5.1 million in liabili- selling best,touting the wonders of its cording to industry records. There, 2000. A judge confirmed the arbitra- ties, including a lease for a Bentley. product at an investor conference. Charges “vigorously” denied he developed a lengthy track record tion award. Still, Mr. Metter would- “We are really a technology com- for people who have been fleeced for defrauding customers.Along the n’t pay,even though his compensation “Keep your mouth shut” pany—even though when you look by Mr. Metter over the years, the way,he bought a large house on a 2- that year was $242,000, according to all the investor complaints at it, you believe it to be a sponge,” comeuppance has been a long time acre lot on a quiet lane in Green- court records. Mr. Townsend ulti- drove Mr. Metter away from Wall he declared,waving a yellow sponge. coming. “He’s a mini-Madoff,” says wich, Conn., which he used last Street to a new career—as a sponge “Anything that is put into this Duane Townsend, a 76-year-old week to secure his $2 million bail, CHARGED WITH salesman. With Mr. Moskowitz, he sponge will stay in it until it is acti- oncologist in Utah who lost and a yacht called The Phoenix. FRAUD: Spongetech launched Spongetech around 2002. vated with water and mechanically $450,000 from buying toxic stocks Mr. Metter was fired from Pru- execs Moskowitz, Soon, however, Mr. Metter was squeezing [sic]. Look at this sponge at a brokerage firm Mr. Metter dential-Bache Securities in 1989 left, and Metter. back with a new venture. After five as an alternative to bottles.” presided over in the mid-1990s. for violating procedures con- years of dormancy, he started By last September, Spongetech The criminal charges are just the cerning client orders,accord- hyping Spongetech’s stock claimed it had $70 million in orders. latest and most serious of Mr. Met- ing to regulatory filings. In in 2007 by issuing a press Not true, the government says. ter’s legal problems. The Securities the mid-’90s, he was presi- release saying a South Prosecutors allege that Mr. Metter and Exchange Commission filed dent of a place called J.J. African company agreed and his partner fabricated 99% of the civil charges last week, and the New Morgan & Co., which to buy 1.5 million car company’s revenue, and when inves- York Mets, Giants and Madison changed its named to First wash sponges, accord- tigators started sniffing around, the Square Garden are just a few of the Cambridge Securities af- ing to the government’s men generated fake sales documents parties that have sued his company ter J.P. Morgan sued. complaint. and created phony offices for nonex- for failing to pay its advertising bills. Clients included Mr. Subsequently, istent clients. When a representative Mr. Metter’s lawyer, Jeffrey Townsend, who got cold- Spongetech proclaimed from the company’s primary supplier Sklaroff, says his client “vigorously called from a broker offering him big sales to clients in got suspicious, Mr. Metter told him denies” the government’s charges a shot at initial public offerings in South America and to butt out. and “looks forward to his day in small technology companies. Mr. Dubai and introduced a “Mind your own business,” Mr. court, where he is confident that he Townsend says he invested SpongeBob SquarePants Metter snapped, according to prose- will be fully vindicated.” $100,000 and sent more after the sponge. The company even cutors. “If you know what’s good for (Spongetech’s COO, Steven stocks initially rose. The stocks photos: ny post hired a stock promoter in you, you’ll keep your mouth shut.”

26 | Crain’s New York Business | May 10, 2010 20100510-NEWS--0027-NAT-CCI-CN_-- 5/7/2010 12:35 PM Page 1

Who’s planning job interviews as the economy recovers? Generation Y...... 51% Generation X...... 30% Baby Boomers...... 29% Silent Generation...... 22% BUSINESS LIVES Source: Adecco Group North America HOT JOBS EXECUTIVE INBOX

MANAGING EDITOR Anne Fisher COMPANY Uptown magazine JOB DESCRIPTION Setting NON-CORPORATE Short on cash? budget and deadlines, overseeing LADDER: Steven Silver Overstocked? copy editors and fact checkers is always conscious of the character his tanks MOST IMPORTANT TASKS Track- give the New York Give barter a try ing copy between departments; skyline. JOE MONTANEZ of Bon Voyage assigning and editing stories Limousine on Madison Avenue CREDENTIALS NEEDED Minimum (www.bonvoyagelimousine.com) of seven years of editorial experi- never pays cash to have a ence at a lifestyle publication; mechanic fix a car in his fleet. He understanding of luxury market doesn’t pay for detailing or RECRUITER Internal bodywork, either. Instead, Mr. Montanez dips into an online SALARY $75,000 barter account to trade limo rides DOWNSIDE Meeting deadlines for goods and services. and managing editorial budget His bartering isn’t limited to UPSIDE Opportunity to contribute business: When Mr. Montanez to a growing media company moved from Long Beach, L.I., into Manhattan, he bartered for Uptown is a bimonthly for affluent furniture, rugs and an espresso African-Americans. It distributes a machine, and hired movers and national edition as well as edi- a painter. “You can get almost tions in Washington, D.C., Chica- anything you can imagine without go, Atlanta and Charlotte, N.C. laying out a penny,” he says. The publication will launch edi- Mr. Montanez and about tions in Philadelphia and Detroit. 23,000 other business owners —SELENA SHEN nationwide—including 1,100 in metro New York—are members of International Monetary Systems Ltd. (www.IMSbarter.com), by far EXECUTIVE MOVES the biggest online barter system in the nation. Members can trade Town Sports International Holdings excess inventory at list price Inc.: Robert Giardina, and get supplies and services 52, was named without spending precious cash. president and chief “We’ve helped plenty of small executive at the owner GOTHAM GIGS businesses survive this recession,” and operator of fitness says Chief Executive Don clubs, and will Mardak. “We’re proud of that.” continue to serve on the board of directors. He was formerly chief IMS employs salespeople to executive of HydroMassage. sign up members. Getting in that Taconic Investment Partners: Andrew NYC Pipe Dream way will run you $695, but Zlotnick, 49, was appointed general membership is free if you join via counsel and executive vice president at though steven silver had a typical suburban upbringing in Mer- the website. You pay $15 in cash the real estate services firm. He was ‘The and $15 in trade monthly, and most recently at GFI Capital Resources rick, L.I., his summers were filled with power tools and Manhattan Group Inc., where he served as general IMS takes 7.5% on every trade. counsel and executive vice president. family rooftops. His father and grandfather ran American Pipe & Tank, one Two caveats: First, federal law Comedy Central: Bob of just three companies in the city that builds and maintains New requires barter companies to Salazar, 42, was business York’s distinctive water towers. ¶ Young Mr. Silver used to go out on report transactions as 1099B named senior vice income. If you use your account president and creative was job sites with the guys.“It was a fun thing for a kid to do,” recalls the strictly for business, you can director of brand 47-year-old.“I’ve done every plumbing job imaginable.” ¶ Then the offset all or part of your barter creative. He was most always recently vice president family’s other passion, deep-sea fishing, captured his attention. What income with business expenses. and creative director knocking started as afternoon fishing trips on the family boat in Sheepshead If you barter for personal goods of the creative group at Spike TV. Bay became international sport-fishing trips for blue marlin. He went and services, the value will count Morgan Joseph & Co.: Jonathan M. as personal income, so be Lowenberg, 43, was named managing in the to college in Miami, earning degrees in marine biology and coastal prepared to pay up at tax time. director and head of private placements zone management, and worked with Florida developers on environ- And second, you may want at the full-service investment banking back of firm. He was most recently managing mental issues. ¶ “But the family business was always knocking in the something that just isn’t there. director and head of private placements my mind’ back of my mind,” says Mr. Silver, who was back in the fold by age 30. “The only thing I can’t find on the at boutique investment bank Merriman IMS network is tires,” says Bon Curhan Ford. ¶ Ever conscious of the character his tanks give the New York skyline, Voyage’s Mr. Montanez, “and Newmark Knight Frank: Robert B. Emden, when Mr. Silver notices water towers elsewhere, he photographs right now, I need 16 of them.” 62, joined the real estate services firm as them. Family trips to Venezuela, Hawaii and Israel all yielded executive managing director. He was a HAVE YOU TRIED BARTER? What do principal at PBS Real Estate. unexpectedly artistic images.“I can’t help it,” he says.“It’s in my blood.” you like or dislike about it? Tell us at See EXECUTIVE MOVES on Page 29 —hilary potkewitz www.crainsnewyork.com/execinbox. buck ennis

May 10, 2010 | Crain’s New York Business | 27 20100510-NEWS--0028-NAT-CCI-CN_-- 5/7/2010 12:53 PM Page 1

RÉSUMÉ REVIEW Radio station master Is your job search all it could be? We ask the experts. and Fresh? audience. On the morning show,for NAME JACK J. BEYDA Exec says he has the Fresh is not that different from what example, they have to cover every- SUMMARY tunes to make CBS’s WLTW was when I joined it in thing from the [Times Square] Background in financial risk management, 1996.But the last I heard,LTW was bomber to who’s likely to get kicked portfolio management and trading Fresh 102.7 No. 1 playing about three or four songs off American Idol. Week to week, PROFESSIONAL EXPERIENCE from the ’70s every hour. We play we’ve been as high as third place Haier America Corp., 2009-present one or two songs from the ’80s in an among our target audience. We Treasurer; quantify economic risk from business operations BY MATTHEW FLAMM hour. That’s the oldest we get. don’t have terribly far to go. M. Safra & Co./SPNY Capital, 2004-2008 VP, fixed income; lead investor for $700 million in directly placed short- eteran radio program- How will you get to No. 1? How do you keep up with all that music? term assets, and $300 million in trading and settlement collateral mer Jim Ryan kept Clear It’s about songs, but it’s also about It’s not necessarily about my choic- Brown Brothers Harriman & Co., 2001-2004 Channel Communica- how the on-air talent relates to the es. It’s always a group discussion, VP, fixed-income investment process group tions’ WLTW, Lite FM, and we do a lot of research. Developed and implemented investment strategy topsV in ratings for more than a Middlegate Asset Management Inc., 1999-2001 decade. But in 2008, amid mass lay- Is the Web good for radio? VP; administered high-net-worth asset-management business offs, he left the company to become Engaging the audience online is a J.P. Morgan Fleming Asset Management Inc., 1984-1999 a consultant. Last month, Mr. Ryan big part of our future. In the old VP, fixed income; generated annual income of $20 million surprised the days,an artist would come by a radio industry when station and you’d tape an interview. EDUCATION he joined rival Now you film it as well,and put it on University of Pennsylvania, B.S.E., systems science and engineering, MOVERS & CBS Radio as the website. It’s fantastic. corporate finance, markets, portfolio, 1984 vice president Résumé appears in condensed form. SHAKERS of adult con- A lot of people think radio is dead. temporary For the last year I was a consultant, I EXPERT ADVICE Jim program- had no clients in New York.Yet I did- In this economy, recruiters are looking for any excuse to toss a résumé out ming. One of n’t find myself listening to radio any of their pile. Jack should should focus on quantifying all of his Ryan his goals: to less. Instead of listening to a station accomplishments to prove his value and use his résumé to prove what he make Fresh that played Elton John, I listened to was worth to previous employers so future employers will take notice. 102.7—the WFAN. The research shows that —connie thanasoulis-cerrachio, career services expert, Vault.com format CBS launched in 2007 to tar- people are listening more than they get Lite FM—No. 1, toppling Lite. used to. CBS stations in the top 10 To contact this candidate or to be featured in “Résumé Review,” e-mail us markets have 38 million listeners. at [email protected]. What’s the difference between Lite FM That’s a huge number.

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28 | Crain’s New York Business | May 10, 2010 20100510-NEWS--0029-NAT-CCI-CN_-- 5/7/2010 9:08 PM Page 1

CORPORATE LADDER promoted to vice president of new department at Proskauer Rose. EXECUTIVE MOVES business ventures from vice president of Simulmedia: Pravin Chandiramani, 35, NEW COMMISSIONER AT PORT AUTHORITY integrated marketing sales at the was promoted to vice president of JEFFREY A. MOERDLER Continued from Page 27 technology and marketing services firm. business development and strategy at , 52, was confirmed as a commissioner of the Port Stephen P.Gordon, 34, joined as a DDK & Co.: Leonard Nakrin, 55, was the media marketing company. He was Authority of New York and New Jersey by the New York state Senate after being managing director. He was formerly a promoted to principal from manager at previously director of business appointed by Gov. David Paterson. He currently serves senior managing director at PBS Real the accounting firm. development and strategy. as the practice leader of Mintz Levin’s real estate and Estate. The Leading Hotels of the World: Deniz Jeff Storan, 38, was promoted to vice communications practices, and will continue in this Pepper Hamilton: Frank J. Cerza, 54, Omurgonulsen, 31, was president of product management. He role. Mr. Moerdler, who has been a commercial real joined the law firm as a partner in the promoted to vice previously served as director of product estate attorney for nearly 30 years, will be instrumental real estate and international practice president of management. groups. He was most recently a partner membership, a new Tremor Media: Nicole Aste, 33, was in approving leases and strategic and monetary at Day Pitney. position. She was promoted to vice president of business expenditures. He will also monitor the development iN DEMAND: Lauren LoFrisco, 43, joined formerly director of intelligence from senior director of of Port Authority projects, most notably the World the video-on-demand and pay-per-view membership business intelligence at the online video Trade Center site. Mr. Moerdler is a member of the distributor as senior vice president of development. monetization platform. executive committee of the real property section of the Herrick Feinstein: affiliate marketing. She was most recently Jack Charles Parra, 46, was promoted to vice New York State Bar Association. at Time Warner Cable, where she served P.Jackson, 51, joined the law firm as a president of product management from as group vice president of marketing. partner in the corporate department. He senior director of product management. —MAIA BLUME Spike TV: Niels was previously a partner in the corporate —maia blume Schuurmans, 45, was promoted to executive vice president of brand marketing and creative. He was previously senior vice president for the department. Kontera: Chris Karl, 38, joined the online advertising firm as senior vice president of U.S. sales. He was formerly regional vice president of sales at Yahoo. MS&LGroup: Mike Huckman, 48, joined the communications firm as senior vice president and director of media strategy for the health care practice, effective May 24. He had been the pharmaceuticals correspondent for CNBC. Coldwell Banker Commercial Phoenix Asset Management: Jarrett White, 32, joined the asset management and commercial brokerage firm as managing director of CBC Hunter Phoenix. He was formerly a senior project manager at Corcoran Sunshine Marketing Group. The National Center for Children in Poverty: Curtis Skinner, 54, joined the think tank based at Columbia University’s Mailman School of Public health as head of the Family Economic Security team. He was formerly a senior policy analyst for the Office of the New York City Comptroller, and will continue as president of Pelliparius Consulting. Carter Ledyard & Milburn: Justine M. Clark, 55, joined the law firm as a partner. She was most recently counsel at Sonnenschein Nath & Rosenthal. Bonnier Corp.: Sara Öhrvall, 38, was named director of research and development. She was formerly senior vice president of research and development for the Bonnier Group, Bonnier Corp.’s parent company. NRC Realty & Capital Advisors: David T. Source rubber in Brazil. Garvey, 35, was appointed senior vice president at the real estate sale and auction firm. He joins from Trowbridge Contract production in China. Capital, where he served as managing partner. IFC and Sundance Acquire customers in England. Channel: Vanessa Benfield, 42, was named senior vice president of Doing business internationally can increase your company’s profitability. Our partnership sales and network of relationship managers provides on-the-ground knowledge in every integrated solutions. market you want to be in. With offices in over 60 countries and territories,1 HSBC She was most recently is uniquely positioned to help you unlock your business’s global potential. at MTV Networks Entertainment Group, where she served as vice Visit your local branch, call 866.257.3768 or president of East Coast sales. go to us.hsbc.com/unlock to find out more. Ilene Danuff, 51, joined as vice president of branded content and integrated solutions. She was previously marketing and creative services director for Plum Television. Tony Song, 37, was named vice president of sales and partnerships for the East Coast. He was previously director of East Coast national media sales at BET Networks. Active Network Inc.: Rich Abend, 39, was EXECUTIVE PROMOTIONS 1The HSBC Group operates through a network of affiliates and subsidiaries around the world. The fastest way to get an announcement into In the United States, products are offered through HSBC Bank USA, N.A. Member FDIC, Equal Credit Opportunity Lender. Crain’s is to submit details online. Fill out the form ©2010 HSBC Bank USA, N.A. at www.crainsnewyork.com/submit. The Executive Moves column is also available online.

May 10, 2010 | Crain’s New York Business | 29 20100510-NEWS--0030-NAT-CCI-CN_-- 5/7/2010 6:53 PM Page 1

THE Coming soon: tough finance bill ast week, haggling over the long-awaited financial WEEK reform bill escalated, with the Senate and Obama Ladministration agreeing to forgo a $50 billion banking industry-funded bailout kitty and Sen. Blanche Lincoln of ON THE Arkansas (left) backtracking by suddenly saying that she doesn’t mind after all if banks stay in the derivatives business. WEB Still, crucial components remain alive, such as the creation of a MAY 3-9 consumer financial protection agency and the so-called Volcker Rule, limiting banks’ lucrative action in derivatives. Given Wall CRAINSNEWYORK.COM Street’s unpopularity, look for a tough bill to be passed soon.

bloomberg news —aaron elstein

CORNER NEWSSTANDS QUAKED last week when The Washington Post Co. put Newsweek up for sale.The publishing firm hired Allen & Co. to find a buyer for the 77-year-old newsmagazine, which recently underwent a full redesign yet continues to bleed red ink. … A trio of QUEENS HOMEOWNERS SUED J.P. MORGAN CHASE BANK AND TWO SUBSIDIARIES for allegedly violating policies of the federal Home Affordable Modification Program. In the first case of its kind in the city, the Queens residents say the bank is foreclosing on them unnecessarily. The bank countered by saying the owners don’t meet the program’s income requirements. Similar suits have been filed against other lenders outside New York. … After nearly a year of legal proceedings, SIX FLAGS ENTERTAINMENT CORP. FINALLY EMERGED FROM CHAPTER 11 bankruptcy protection with a plan to cut its debt and pay its creditors. No word on whether the amusement park owner will pay the dancing old guy to help reinsert that jingle into everyone’s head again. … The recently announced NUPTIALS OF UNITED AIRLINES AND CONTINENTAL AIRLINES will affect Newark Liberty International Airport more than other metro- area airports. Continental employs some 13,000 people here and carries more passengers through the area than any other airline. Once the merger is consummated, the surviving United brand will dominate flight activity in both the national and New York markets. —elisabeth butler cordova HOORAY

TALK OF an art-market rebound intensified as a Picasso work sold for a record $106.5 million. OY VEY AT LEAST two airport security lapses nearly let an alleged would-be terrorist fly out of the country.

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30 | Crain’s New York Business | May 10, 2010 20100510-NEWS--0031-NAT-CCI-CN_-- 5/7/2010 12:39 PM Page 1 chemex / INSATIABLE CRITIC additional information. flickr.com Gael Greene THE TUESDAY, MAY 18 Join NETWORKING FOR PROFESSIONALS for a mixer from 6 p.m. to 8 p.m. at WEEK O’Brien’s Irish Pub, 134 W. 46th St. Fees are $10 for members and $15 for nonmembers in advance, and $20 at the Taking a Bao door for all. Call (212) 227-6556 or e-mail AHEAD [email protected]. MAY 17-23 WORKSHOPS WEDNESDAY, MAY 19 on St. Marks The NEW YORK PUBLIC LIBRARY’S CONFERENCES & SEMINARS SCIENCE, INDUSTRY AND BUSINESS Latest in a dynasty, MONDAY, MAY 17 LIBRARY will hold a workshop on online The ROYAL INSTITUTION OF CHARTERED social media basics from 6 p.m. to 7:30 WHAT HE’S DOB 111 pleases with SURVEYORS AND COUNSELORS OF REAL p.m. at 188 Madison Ave., lower level ESTATE hosts a program on the conference room 018. Free. Call READING Asian fusion dishes commercial real estate market for public (917) 275-6975 for details. and private investors from 5 p.m. to 7:30 JAMES KUHN, president of s he cuts his deadly p.m. at the New York Athletic Club, 180 CULTURAL EVENTS Newmark Knight Frank, invests in swath through Man- Central Park South. The fee is $75. Call SATURDAY, MAY 22 real estate but is always looking THE FLEA THEATER hattan restaurants, ex- (212) 847-7400 for more information. Head to at 8 p.m. at 41 White St. to see Parent’s Evening, a play for other opportunities. He often panding his empire in FRIDAY, MAY 21 about married life and working mothers. turns to books for insight. shabby little holes, one The NEW YORK SOCIETY OF SECURITY Tickets cost $40 and can be purchased Since acquiring a Kindle about 18 tricked out after another while his buck ennis A AN EASY SELL: Seared sea scallops ANALYSTS will hold a seminar on online at www.theflea.org, or by calling months ago, he reads multiple partnerships wither, Michael “Bao” investment implications of demographic (212) 352-3101. nonfiction titles. “When you get Huynh deserves to be, at the very shifts in developed markets from 5:30 FUNDRAISERS tired of one, you can just switch to least, ignored. Alas, I’m perversely DOB 111 p.m. to 7:30 p.m. at 1540 Broadway, another,” Mr. Kuhn says. suite 1010. Fees are $75 for members TUESDAY, MAY 18 Pick mesmerized. I loved his food at Bao 115 St. Marks Place Currently, he’s reading Start- (212) 228-2500 and $115 for nonmembers. Call Head out to CITI FIELD from of the 111 before he moved on to Mai Up Nation: The Story of Israel’s House, where the kitchen was bril- www.dob111.com (212) 541-4530 or e-mail 6 p.m. to 9 p.m. for week [email protected] for more details. “Queens … A Taste of the Economic Miracle, by Dan Senor liant, before he moved on to ’Bun, World,” which features over 40 and Saul Singer; The Quants: How which was extraordinary before he NETWORKING RECEPTIONS restaurants. Dave Lieberman of the Food a New Breed of Math Whizzes abandoned it and became a partner TUESDAY, MAY 18 CUISINE Asian fusion Network and Anahad O’Connor of The Conquered Wall Street and Nearly at BarBao, opened with so much OWIT-NY and MANHATTAN CHAMBER OF New York Times will award top honors to PRICE RANGE hope and style and investment, be- Entrées $15 COMMERCE will hold a global participating restaurants. Proceeds will Destroyed It, by Scott Patterson; fore he moved on to Baoguette and to $18 networking evening celebrating World benefit the Queens Economic and Googled: The End of the World Pho Sure … and on … and on. His SERVING Lunch, brunch, dinner; Trade Week from 6 p.m. to 8 p.m. at Development Corp.Tickets cost $100 As We Know It, by Ken Auletta. restaurants have been wonderful … closed Mondays. Public House Restaurant, 140 E. 41st and can be purchased online at Mr. Kuhn sticks to one fiction St. The event is free for members, $10 www.discoverqueens.info or by calling at least for the first month. That’s book at a time. He’s reading Karl RESERVATIONS Recommended for nonmembers. Call (212) 703-5078 (718) 263-0546. Marlantes’ Matterhorn, about what I’m telling my friends tonight or e-mail [email protected] for —maia blume at the week-old DOB 111, which NOISE LEVEL Acceptable Marines in Vietnam. —THERESA AGOVINO stands for “Date of birth, Nov. 1”— I can’t wait to return. To view Crain’s full calendar listings, go to www.crainsnewyork.com/events his own, he explains, a Scorpio quite I will definitely go back. delighted with his cleverness. I’ll let them simmer awhile. Though it’s Thursday and St. NO HATS Never again. Marks Place is bustling, only one other table is working at DOB. “It’s early,” Huynh shrugs. “We just of XO sauce. opened. And the waiter is out, so I’ll Our Scorpio earned his way de- be your waiter tonight.” He suggests signing and building restaurants be- we should not miss the spring garlic fore his partners propped him up for soup. He’s right. It’s wonderful. A a smashing success at Bao 111. He spicy variation on the fabulous tricked up this little spot himself on mountain yam soup I fell in love with a tight budget, I’m guessing, but it’s when I first discovered him cooking charming, with giant palms painted on Avenue C—not quite heated on the wall behind us, a plant he through, perhaps, but equally lus- might have found at the curb, pages cious with delicately cooked rock from a Vietnamese book papering shrimp and bits of Chinese sausage. the bar and loo,and stripes of collage There’s something hasty about across the room. this menu, as if the chef threw it to- As usual with me in Baoland,I’ve gether. It reads like he’s torn be- ordered too much. Spicy oxtail stew tween riffs on dishes his fans love— with green papaya, lotus root, yucca daikon duck hash is a must—and and horseradish gnocchi is my fa- not wanting to tread on what’s vorite, but our chef guest prefers working at his Bia Garden, while crispy pork belly with taro sausage also borrowing some fusion ideas mash and pickled vegetable. Black from the defunct BarBao. cod glazed with bean curd nests in I am more thrilled than my com- palm heart purée is good enough, panions about “mind of lamb” ravi- and even normally boring filet oli—a cagey way to present brains in mignon comes alive in the wok a town with only scattered fans.The served with spicy cress, a vibrant controversial offal invisible inside spicy salsa and tangy avocado lime papery wrappers with carefully purée.The side of daikon duck hash cooked prawns in a coral sauce I ordered is delivered on a platter makes the dish easy to love. with delicious slices of kaffir lime And a juicy rare quail satay with basted duck breast and a fried egg jicama and mango salad and peanut (chef booty).All just $30 per person. sauce is a lovely bird that two might I’ll probably come back—if it’s easily divide for just $10. A trio of still here next time I need another seared sea scallops on cauliflower Huynh fix. I’m curious to taste clam almond purée with Chinese bacon chowder tom yum style with rice and green curry is an easier sell with paddy herbs. those tasting Huynh’s food for the first time,even with its piquant trail Copyright © 2010 by Gael Greene. of dried fish essence from a touch Syndicated by www.insatiable-critic.com.

May 10, 2010 | Crain’s New York Business | 31 CN013658 4/23/10 4:58 PM Page 1

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