TOP STORIES “Every single Ad guru helps rising month, there firm win transit are more and billboard contracts more [Internet] nationwide companies.” PAGE 3 ® –Kevin Ryan, entrepreneur Page 14 Targeted hospitals line up in court to strike back at VOL. XXIII, NO. 1 WWW.NEWYORKBUSINESS.COM JANUARY 1-7, 2007 PRICE: $3.00 state closing panel PAGE 3 MANHATTAN LOCATIONS Expansion on the Terror fund grill at Zen Palate * PAGE 4 campaign REPORT 90* Estimate. 200 ECONOMIC gains steam FORECAST ■New York City’s Insurance subsidy growth rate will continue to outstrip a high priority the nation’s PAGE 6 among Democratic ■After an epic 2006, committee leaders Wall Street profits projected to fall slightly PAGE 9 BY JULIE SATOW ap images ■ DEMOCRATIC Sen. Christopher Dodd and Mass-market Rep. Carolyn Maloney will play key roles. retailers changing for the first time since Sept. the way New Yorkers COFFEE BATTLE 11,the real estate and insurance in- shop PAGE 10 dustries are gaining momentum in A push for permanent funding ■The second wave their effort to secure long-term in 2005 resulted in only a two- of dot-com startups BREWS IN CITY federal subsidies for terrorism cov- year extension. The Democratic arrives in the area erage. takeover of Congress, which con- PAGE 14 The incoming chairmen of the venes Thursday,has improved the Dunkin’ Donuts aims to tap Senate Banking Committee and outlook for an enduring program. the House Financial Services That is good news for landlords Starbucks’ upscale customers Committee have publicly ex- and tenants here.New York has the by opening shops near offices pressed support for extended highest terrorism risk of any city in funding to back insurers that cov- the country, and insurance to cov- er terrorism risk. Another sup- er the cost of rebuilding after an at- AT DEADLINE BY ELISABETH BUTLER porter, Rep. Carolyn Maloney of tack drives up the price of already- Manhattan, became chair last expensive properties. BROADWAY IS EXPECTED TO dunkin’ donuts, a fast-food chain that has long appealed week of a House subcommittee “The No. 1 issue associated REPORT record-breaking to construction workers and taxi drivers, is trying to put overseeing the issue. See INSURANCE on Page 17 grosses—even surpassing 2005’s $825 million—when it more of its signature pink and white coffee cups into the releases its year-end numbers manicured hands of office workers. this week. From the As part of the expansion plan it launched last year, beginning of the theater Dunkin’ Donuts aims to challenge Starbucks’ white-collar season in June through Dec. popularity by opening more stores in Manhattan’s office Stock market rally 24, grosses jumped nearly buildings and near tourist attractions such as Rockefeller 10%, to $520.6 million.The Center and Times Square. To help secure some of those box-office bonanza is the coveted sites, Dunkin’ Donuts has introduced a more up- lifts NY companies result of a number of hit productions as well as the scale store model, complete with granite countertops and advent of premium-priced wallpaper sporting its new logo. Starbucks, the city’s biggest Local index up 24% tickets, which have reached coffee chain, is brewing its own expansion plan to fight back. as interest rates level $300 for some shows.The “Our thing is getting into more high-end buildings,” says top-selling musical, Wicked, Steve Menexas, one of the city’s dozen Dunkin’ Donuts off; some losers also led the overall pack.The franchisees.“We want people to see that we’re not just about show brought in more than cheap coffee,” he says. $1.5 million some weeks, an BY AARON ELSTEIN amount previously unheard of Though Dunkin’ Donuts’ corporate officers did not re- on the Great White Way. turn calls for comment, an insider familiar with the compa- the stock market turned in a ny’s managerial decisions says that executives don’t want to memorable year in 2006, helping NINETEEN NEW YORK AREA turn the doughnut emporium into Starbucks. Rather, they make the experience of reviewing a COMPANIES went public in are trying to freshen up the stores to attract a wider variety 401(k) account the most pleasant in 2006, the most since 1999, of customers without irking their working-class devotees. memory. New York companies led according to Renaissance See COFFEE BATTLE on Page 19 the parade.The Bloomberg/Crain’s See AT DEADLINE on Page 2 New York index of area stocks rose

corbis 24%, handily beating the Dow Jones Industrial Average and the tabones gerard Standard & Poor’s 500, which rose were even early signs that the COMINGNEXT WEEK 17% and 14%, respectively. housing market was stabilizing. Crain’s SMALL BUSINESS REPORT starts The market’s rally took hold in The coming year should be a the year with resolutions from 10 midyear, after the Federal Reserve bountiful one as well, according to ELECTRONIC EDITION entrepreneurs, who share frustrations stopped raising interest rates and Morgan Stanley strategist Henry and express optimism about 2007. the three-year run-up in oil prices McVey.He forecasts that the mar-

NEWSPAPER ran out of gas. By year’s end, there See MARKET on Page 18 WEEK IN REVIEW AT DEADLINE

Continued from Page 1 proposed Dallas-Beijing service Capital’s IPOHome.com. The had been considered the front- approved the $4 billion, 22-acre surge was composed mostly of runner until last month, when Atlantic Yards project.The midsize investment banks like its pilots said they wouldn’t fly development will include a home Evercore Partners and Keefe the long-haul trip. American’s for the New Jersey Nets and 16 Bruyette & Woods. A number flight would stop in Chicago as buildings, including 6,000 of hedge funds are expected to a result, giving Continental residential units. … The U.S. go public if New York-based renewed hope for its bid. Department of Transportation Fortress Investment Group can Northwest Airlines and United committed $2.7 billion to help pull off its proposed IPO this Airlines are also competing. build a rail link between Grand spring. Central Terminal and the Long THE CONSULATE GENERAL OF Island Rail Road. THE BROADWAY DANCE CENTER IRELAND HAS SIGNED UP for HAS SIGNED a 10-year lease for another 13 years in its 35,000- 22,000 square feet at 322 W. square-foot location at 345 Park NYT downgraded 45th St., at Eighth Avenue.The Ave., between East 51st and standard & poor’s cut The New center has been holding classes East 52nd streets.The sublease York Times Co.’s credit rating to in three temporary locations with Bristol-Myers Squibb was BBB-plus from A-minus. S&P since leaving its longtime set to expire.The consulate now cited the publishing company’s location at West 57th Street in has a lease with the building’s capital spending plans and a December. Cresa Partners landlord, Rudin Management challenging environment for represented Broadway Dance in Co. CB Richard Ellis newspapers. It also said that the the deal, and Newmark Knight represented the tenant in the outlook for the NYT’s debt is Frank negotiated on behalf of deal; Rudin represented itself. negative, which could lead to the sublessor,Thomson’s Tourists flock to New York City further downgrades. Technicolor. Asking rent was A PROPOSAL TO CHANGE STATE LAW A RECORD 44 MILLION VISITORS pumped more than about $30 a square foot. TO REMOVE the informed consent requirements for HIV testing $24 billion into the Big Apple last year, according to NYC & Monster starts THE U.S. DEPARTMENT OF could pose one of the first health Company. That’s up 7.3% from 2005, and MAYOR MICHAEL climbing back TRANSPORTATION is expected to care challenges faced by the BLOOMBERG said the city is well on its way to achieving his decide in the coming weeks Spitzer administration.The monster worldwide inc. which airline will get the rights New York County branch of the goal of attracting 50 million tourists annually by 2015. NYC regained its status with the Nasdaq to a new route to China. Among state Medical Society endorses & Company is expanding its international marketing Stock Market after filing its third- those vying for the valuable eliminating consent to speed up campaign, which debuted in London last month. quarter earnings report with the business is Continental Airlines, testing, but a key Assemblyman, Securities and Exchange which would fly from Newark Richard Gottfried, maintains corbis Commission. Liberty International Airport to that that goal can be reached in increased its reserves to cover the Shanghai. American Airlines’ other ways. ■ Bruno probed; settlement costs and lowered its Hevesi out 2006 earnings estimates. Spitzer settles new york state Senate Majority two inquiries TOP 10 CRAIN’S WEB STORIES Leader Joseph Bruno (below) said News Corp., entercom communications The most popular online stories in the fourth quarter of 2006. that the federal government is Liberty swap Corp., the nation’s fifth-largest 1 Lord & Taylor considers moving out Nov. 6 investigating his radio conglomerate, settled a pay- outside business news corp. and Liberty Media for-play inquiry by New York state 2 Park Avenue Cafe to shutter on Jan. 1 Nov. 7 interests. … Corp. agreed to an $11 billion asset Attorney General Eliot Spitzer Under a deal swap, settling a two-year dispute for $4.25 million. … Cardinal 3 MetLife real estate deal could be derailed Nov. 15 that allowed over Liberty’s stake in Rupert Health Inc., which distributes 4 Merrill Lynch may leave New York City Nov. 10 him to avoid jail Murdoch’s empire. News Corp. drugs and medical supplies to time, Alan agreed to buy back Liberty’s 16.3% hospitals and retailers, agreed to 5 Kroll pulls security team out of Iraq Nov. 1 Hevesi resigned stake in exchange for 38.5% of pay $11 million to settle a Spitzer as comptroller DirecTV, $550 million in cash and investigation into improper 6 Spitzer fills slate of key administration posts Dec. 15 and pleaded three regional sports networks. trading of pharmaceuticals on the guilty to ap images secondary market. 7 Supreme Court rules against New York Times Nov. 27 defrauding the state by using Verizon taps Strigl 8 Lehman executive to be EDC president Dec. 18 government employees to chauffer his wife. verizon communications inc. MetLife inks lease 9 Fox 5 striking out with World Series Oct. 27 named Verizon Wireless President Denny Strigl to succeed Lawrence on Sixth Avenue 10 Park Avenue Cafe avoids being shut down Dec. 13 Morgan moves; Babbio as the company’s president metlife inc., which is moving out and chief operating officer. Mr. of office space in Queens, signed a Read breaking news daily @ www.newyorkbusiness.com NYSE gets nod Babbio had previously announced 21-year lease for 410,000 square morgan stanley said that it his plans to retire. Verizon Wireless feet of space at 1095 Sixth Ave., plans to spin off its Discover credit COO Lowell McAdam was the former Verizon building that card unit, worth an estimated promoted to president. Equity Office Properties $13 billion, in 2007. … The NASD Trust is redeveloping across THIS WEEK IN CRAIN’S accused Morgan of obstructing a from Bryant Park. probe by claiming millions of IFIL Group buys e-mails related to hundreds of BY THE NUMBERS ------3 arbitration claims were lost in the Cushman stake City Council Sept. 11 attacks. … New York ifil group, which is controlled by NEW YORK, NEW YORK------4 Stock Exchange shareholders the Agnelli family of Italy, agreed targets clubs overwhelmingly approved the to buy a controlling interest in the city council REPORT: NYSE’s $14.3 billion acquisition of Cushman & Wakefield for $563 outlined a 15-point reform Paris-based Euronext—a deal that million.The deal would end 30 measure aimed at ECONOMIC OUTLOOK------5 will create the world’s first trans- years of control by Rockefeller combating underage Atlantic financial market. International Group Inc. and drinking and CLASSIFIEDS ------16 values the commercial property improving nightclub 5 giant at $975 million. safety. Legislation will THE WEEKS AHEAD ------17 Bristol resolves be introduced and may come up for a vol. xxiii, no. 1, january 1, 2007—Crain’s New York Business (issn 8756-789x) is published federal charges Atlantic Yards, committee vote this weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address bristol-myers squibb co. will month. changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, pay $499 million to settle a federal rail link on track —from staff MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents investigation into whether it after months of political istockphotos reports and copyright 2007 by Crain Communications Inc. All rights reserved. overcharged the government for maneuvering, the Public bloomberg prescription drugs.The company Authorities Control Board news reports

2 | Crain’s New York Business | January 1, 2007 Titanof transit ads Targets County, California. dig in Outdoor veteran CBS Outdoor says it still takes contract from holds contracts in Atlanta, Chicago, Los Angeles, Mi- Hospitals ordered to CBS; nationwide ami and San Francisco. close turn to courts “Titan has done a nice growth strategy job of picking up new con- tracts,” says Steve Freitas, BY GALE SCOTT BY AMANDA FUNG chief marketing officer of trade group Outdoor Ad- legal challenges are mounting last month, challenger Titan vertising Association of to the Berger commission’s recom- Worldwide beat incumbent CBS America. mendations on hospital closings, Outdoor for the lucrative 10-year, which becomes law today. $823 million contract to sell adver- Growing market The panel called for the closing tising space throughout the city’s the firm projects that rev- of nine facilities, including Parkway bus and commuter train systems. enues will increase more Hospital in Forest Hills, Queens, But the force behind the win- than 40% this year from and Cabrini Medical Center in ning bid was the very man who had 2006, to close to $500 mil- Manhattan. won the subway and bus contract lion.Titan, which is backed On Friday, Parkway, which filed for CBS Outdoor nearly 10 years by private equity outfit for Chapter 11 protection in July ago. Welsh Carson Anderson & ATTENTION PLEASE: 2005, filed suit in Federal Bankrupt- William Apfelbaum,the guru of Stowe, had only $3 million Titan’s $823M MTA cy Court asking a judge to stop the outdoor advertising, took time off in revenues during its first contract includes closing, arguing that bankruptcy law platform advertising. in the early part of this decade but year in business and is bene- forbids such action until Chapter 11

came back as chairman of Manhat- fiting from the growth of buck ennis proceedings are concluded. tan-based Titan, which was found- outdoor advertising. Cabrini, which has filed suit in ed five years ago. He is positioning Total outdoor advertising rose ny recently, winning a 10-year, America President Donald All- state Supreme Court in Albany, the firm to become the nation’s 9% last year, to $6.8 billion. But $580 million deal covering the New man, now Titan’s chief executive, charges the panel with trying to vi- largest transit-ad transit advertising York subway system as well as a ma- had saved the company from bank- olate the hospital’s “constitutionally company. AT A GLANCE revenues increased jor Cleveland transit contract. ruptcy and turned it into a thriving protected property rights.” Cabrini “Out-of-home 22% to $816 mil- “The bigger players have an ad- operation. also argues that the commission’s advertising was my lion, according to vantage,” says Fred Moran, media “When we owned and ran TDI, closed-door deliberations violated first love. It comes SOME OF the outdoor adver- analyst at Stanford Group. we were able to make a massive its rights of due process as well as the naturally and easi- TITAN’S MAJOR tising trade group. CBS Outdoor and Clear Chan- medium out of transit advertising Open Public Meetings Law. ly to me,” says Mr. CLIENTS Standing in Ti- nel Outdoor of San Antonio,Texas, in the United States,” Mr. Apfel- Saint Vincent Catholic Medical Apfelbaum, who tan’s way is CBS which has revenues of about baum says. “We were a one-stop Centers, which has been ordered to has been selling ABC Carpet & Home Outdoor. The $2.9 billion a year, will remain in- shop for advertisers.” close St. Vincent’s Midtown in transit ads since Anheuser Busch Manhattan-based dustry leaders, Mr. Moran says. Now that Titan has the New Hell’s Kitchen, welcomed the the 1970s. “Even company, which York bus and rail contract under its moves by the other hospitals. though I knew we Banana Republic has annual rev- ‘Great team’ belt, Mr. Apfelbaum has the same “We’re not taking any action yet, would be success- Continental Airlines enues of $2.1 bil- mr. apfelbaum, 59, is intimately vision. The company has been able not until we see what happens,” a ful, I never expect- lion, controls most familiar with his rivals, especially to boost annual ad sales by about spokesman for the system says. ed Titan to get as The History Channel of the bus and sub- CBS Outdoor. In fact, he’s respon- 20% in cities where it has transit ad State Assembly Health Com- big as it has.” IBM way advertising in sible for much of its success. deals. He is also eagerly awaiting mittee Chairman Richard Gott- The recent the United States. He was running Transportation the result of a Chicago bid and is fried has asked Gov.Eliot Spitzer to groundbreaking Louis Vuitton Titan’s success de- Displays Inc. when CBS inherited gearing up to submit proposals in consider amending the enabling win is Titan’s sev- Maxim magazine pends on continu- the company in its acquisition of Dallas and Los Angles. legislation,which requires that all of enth against CBS ing to wrest con- Infinity Broadcasting in 1996.Ear- “Outdoor advertising is poised the Berger panel’s recommenda- Outdoor in the Target tracts from its rival lier that year, Infinity had pur- to grow faster,” Mr. Apfelbaum tions be accepted. past three and a Wachovia in a process that chased TDI for $300 million. Mr. says. “There’s a lot of opportunity “We’re watching the suits,but the half years. The revolves around Apfelbaum stayed on as TDI’s coming our way in the next few courts could take years,” Mr. Got- company has contract expira- chairman and chief executive until years. We have a great team, and tfried says.“It’s not fair to leave some snatched business away from CBS tion dates. February 2000. we’re not afraid to be aggressive.” hospitals twisting in the wind.” Outdoor in Boston, Minneapolis, Despite Titan’s recent victories, Before Infinity purchased TDI, Philadelphia, Seattle and Orange CBS has outbid the smaller compa- Mr. Apfelbaum and TDI North COMMENTS? [email protected] COMMENTS? [email protected]

BY THE NUMBERS FIELDS OF DREAMS the planned 18,000-seat basket- ball arena for the Nets has garnered front-page headlines because it is part of a controversial multi-use development in Brooklyn. But in fact TEAM NETS GIANTS AND JETS YANKEES METS DEVILS RED BULLS the metro area is COST $4B1 $1.2B $1B $600M-$800M $365M $130M experiencing a boom in stadium construc- STATUS Construction set Groundbreaking set Ground broken Aug. 16, Ground broken Nov. 13, Ground broken Oct. 3, Ground broken Sept. 19, tion. Seven profes- to start in fall 2007 for spring 2007 2006 2006 2005 2006 sional sports teams are erecting new NAME Not decided Not decided Yankee Stadium Citi Field2 Prudential Center 3 Red Bull Park homes. Why? The teams know they’ll SCHEDULED Fall 2009 August 2010 April 2009 April 2009 October 2007 July 2008 be able to rake in big OPENING bucks by raising ticket prices, grant- SEATS 18,000 81,000 53,000 42,500 17,500 25,000 ing naming rights and selling luxury LOCATION Brooklyn East Rutherford, N.J. The Bronx, north of Flushing, Queens, east Newark, N.J. Harrison, N.J. box subscriptions. current stadium of current stadium 1-Total cost of Atlantic Yards development. 2-Mets will be paid $20 million a year under a 20-year naming rights deal with Citigroup. 3- The Devils are reportedly close to announcing a 10-year, $100 million naming-rights deal with Prudential Financial. yankees photo,yankees bloomberg news; devils photo, gettyimages

January 1, 2007 | Crain’s New York Business | 3 Q. GGK’s Slogan is… NEW YORK,NEW YORK “Quality Companies Are Attracted To Us” In your view, why are quality companies edited by Valerie Block January 1-7 attracted to Goldstein Golub Kessler LLP?

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and not-for-profits, or to request a brochure, call me or first New York location in May at East corbis visit our website, www.ggkllp.com. 34th Street and Third Avenue, in a space now occupied by Chicken Cabaret. It is negotiating a lease for a second Manhattan store, in the new New York Times Building. GOLDSTEIN GOLUB KESSLER LLP American Zen, serving veggie burgers and health shakes, will launch in Los Angeles this Certified Public Accountants and Consultants year, with plans to eventually go national. Quality Companies Are Attracted To USSM Meanwhile, the first new Zen Palate in six years will open in the Wall Street area this

1185 Avenue of the Americas Suite 500 New York, NY 10036-2602 month. Locations in Princeton, N.J., and Pasadena, Calif., are due shortly after. Tel 212 372 1800 Fax 212 372 1801 www.ggkllp.com “We are taking on the whole vegetarian category,” says James Tu, who became chairman of the 15-year old empire two years ago. “Our target market is flexitarians—people who eat vegetarian three or four times a week.” Mr.Tu, a former investment banker, is raising $6.6 million for the expansion.The three founding partners are retired but remain substantial investors, he says.

Each has agreed to propose to his a year—when the Brooklyn Seeking the right girlfriend in the pages of the Museum opens its long-awaited February issue of Essence, which Elizabeth A. Sackler Center for writing partner hits newsstands on Jan. 5. A Feminist Art this spring. maurice “hank”greenberg hidden camera will record the The center is the first such (below) is moving forward with scene as the respective women department at any museum in the his publishing plans.The deposed read their proposals—and accept world, according to curator Maura chief of or reject them. Reilly. It will open in March, after a insurance giant The videos will be posted on delay of two years due to 236,000 Readers AIG is meeting Essence.com as a reality miniseries. construction problems. with writers this “There is the possibility that The Dinner Party, Judy Chicago’s month to choose the young lady will say no,” says famous work from the 1970s Are Awaiting 40 Names a collaborator for Angela Burt-Murray, editor in chief consisting of 39 place settings for his memoir, of Essence. “That’s the interesting iconic women like Virginia Woolf according to his thing about reality stories. But and Susan B. Anthony, will be on bloomberg newsbloomberg agent, Ken we’re all quite hopeful.” permanent view in the 8,300- Frydman, a principal at Source As advertisers flee print for the square-foot space. Communications. Internet, Essence, like all other The center will also feature two “We’re doing chemistry Time Inc. titles, has been under temporary exhibitions each year. checks, to see how Mr. Greenberg pressure to focus more on the The first two shows scheduled are likes them and they like him,” Mr. Web. “We know that African- “Global Feminisms,” a survey of Frydman says. “Whomever is American women are online,” Ms. contemporary art, and “Pharaohs, chosen will have to spend a good Burt-Murray says. “We want to be Queens and Goddesses,” which is deal of time with him.” Mr. sure we can touch them wherever based on the themes of The Greenberg is notoriously testy. they are.” Dinner Party. The book is expected to cover “You would think it would everything from Mr. Greenberg’s have happened in a contemporary experiences in World War II to Female artists art museum like MoMA or the the run-in with Attorney General get a seat in B’klyn Guggenheim,” Ms. Reilly says. 40 Eliot Spitzer that led to his ouster “It’s pretty amazing that an at AIG. Mr. Frydman is confident women artists will finally have encyclopedic museum chose to that he’ll find a top publisher for their day—er, make that 365 days do this.” ■ Crain’s Report: the tome. “We’re getting a lot of interest,” 40 Under 40 Executives to Watch he says. “The phone is ringing.” HOLIDAY DINING RUSH Publishing sources expect Mr. Restaurants report huge increases in business this season, thanks to tourism, Greenberg to get less than the Wall Street bonuses and the growing trend of eating out on special occasions. $7 million former GE chief Jack Check out the headcounts at New York’s biggest tourist-magnet eatery. Issue Date: January 29 Welch fetched for his first book, Straight from the Gut. TAVERN ON % CHANGE Ad Close: January 11 THE GREEN 2006 FROM ’05 To advertise call Vanessa Cognard Popping question, Christmas Eve 2,316 23% at 212.210.0732 or visit Christmas Day 3,505 14% newyorkbusiness.com multimedia-style New Year’s Eve 2,000* 230% six african-american men risk *Projected; includes private party. Source: Tavern on the Green

intense humiliation this week. istockphotos

4 | Crain’s New York Business | January 1, 2007 ECONOMIC OUTLOOK “Quality of life issues make New York different than it used to be and different from the rest of the country. More people—and more affluent people—want to live here.” —Jason Bram, Federal Reserve Bank of New York, Page 6 The boom rolls into another year INSIDE Forecast City’s growth will outpace the nation’s PAGE 6 Housing Local market avoids national slump PAGE 6 Wall Street White- hot securities industry has red-letter year PAGE 9 Alair Townsend Charities find gold on Street PAGE 9 Retail New Yorkers get a taste of big discounters PAGE 10 Freelancers Independents become a force in the workplace PAGE 13 Technology Web 2.0 revival promises sustained benefits PAGE 14 Snapshot A roundup of important city statistics PAGE 15 photos by buckphotos ennis

January 1, 2007 | Crain’s New York Business | 5 REPORT ECONOMIC OUTLOOK Strong growth in 2007 as city outpaces nation

tion of growth. Meanwhile, more sure here.Manufacturing ac- New York will add volatile sectors like construction, counts for just 3% of the nearly as many jobs tourism and retail will help offset a city’s labor base. New York modest cooling on Wall Street. will keep shedding what re- as in 2006; U.S. “Most of the trends that benefit- mains of its manufacturing recession a wild card ed the economy in 2006 can be ex- jobs as producers—particu- pected to stay in place,” says James larly in the garment indus- Brown, a labor market analyst with try—send work overseas. NO SLACK: Workers who lose jobs BY TOM FREDRICKSON the New York State Department of But such losses don’t have the im- in Berger commission closures will Labor. pact that they do upstate or in the be snapped up by hospitals with in 2007, New York’s economy will Midwest. labor shortages; there’s plenty of tourist demand for new hotel rooms. repeat the same remarkable feat it Can’t rule out a downturn The city is also buffered from the accomplished in 2006: growing a national recession could de- housing decline. Although reports faster than the national economy. flate predictions, however. Con- vary, the Manhattan apartment Most of the 8,800 private Crain’s estimates that the city will cerns about a downturn are much market appears to have simply flat- health care jobs added in add 54,000 jobs this year, nearly less pronounced than they were in tened in 2006 while markets else- 2006 were in home care, matching its 2006 performance and early 2006, but they haven’t disap- where fell sharply. Residential con- doctors’ offices and ambula- taking the labor market to 3.7 mil- peared. The housing market could struction is expected to remain tory care facilities.

lion jobs. That is just 20,000 shy of knock the wind out of consumers, strong here but drop nationally. Because the city remains by buckphotos ennis the post-1960s peak in 2000, fueled who are responsible for two-thirds “Quality of life issues make New underserved, retail, the by the dot-com boom. of economic activity. York City different than it used to be fastest-growing sector last year, will The falling dollar will also help assure New York’s projected 1.5% in- “I don’t think we can rule out a re- and different from the rest of the keep expanding. That includes big- a steady stream of foreign tourists. crease in employment compares with cession in the next 12 to 18 months,” country,” says Jason Bram, an econ- box retailers like Ikea, the Swedish Despite stellar growth in Wall the projected national rate of about says James Parrott, chief economist omist at the Federal Reserve Bank home-goods store that will employ Street employment in 2006—up 1.1%.Two sectors that have been ex- at the Fiscal Policy Institute. of New York. “More people—and hundreds at the Red Hook, Brook- about 7,200 jobs, the biggest gain panding for many years—health care In the meantime, drags on the more affluent people—want to live lyn, location it plans to open this since 2000—overall uncertainty is and education—provide the founda- U.S. economy are exerting less pres- here.” year. making this year look like more of a The New York Building Con- “I don’t see retail slowing down,” question mark. gress recently forecast that more says economist Barbara Byrne Den- “Firms would rather make do than $21 billion in construction will ham. “The demand is too great.” with the staff they have than over- take place in 2007, slightly more commit and have to displace peo- than last year. Public infrastructure Visitors welcome ple,” says Peter K. Gonye, co-head spending will drive the increase, with hotel occupancy rates av- of Spencer Stuart’s private equity with projects like the downtown eraging about 85% and room rates and investment banking specialty PATH station and Fulton Street spiking, lots of new properties are in practice. transit hub getting under way. the pipeline.Twenty-nine hotels are Additionally, business and pro- Even after the state implements scheduled to open this year, which fessional firms, which normally the Berger commission recommen- will add 4,157 rooms, according to grow in sync with Wall Street, have dations to close or restructure five industry experts PKF Consulting been adding staffers more modestly hospitals in the city—a loss of about Inc.That’s about double the number in this expansion. Economists at- 4,000 jobs—the private health care that went into inventory in 2006. tribute that to the fact that Wall sector will grow, albeit more mod- Given the industry standard of Street gains are coming predomi- estly. Not all the shutdowns would one employee per room, the hotel nately in activities like trading, occur this year. Many displaced boom should add about 4,000 jobs. which requires relatively little help nurses and other workers will be The extra product will also help the from lawyers, accountants and oth- snapped up by hospitals that have city top last year’s record of 44.4 mil- er service providers. labor shortages or become busier af- lion visitors, which will in turn boost jennifer chiu ter others close. business for stores and restaurants. COMMENTS? [email protected] NYC sidestepping U.S. housing downturn

ry has sent sales—and prices—into a condos are concerned, it may be the Lack of speculation, tailspin and where sellers are hand- only bright spot in the country.” INHERENT DEMAND: New York has one many buyers limit ing out goodies to entice buyers. That doesn’t mean New York is of the largest bases The New York housing market, totally off the hook for a bigger of affluent renters price declines; on the other hand, shows few signs downturn. Last year’s increased in- who want to buy. oversupply worries of serious weakening. Though sales ventory of properties for sale and the have slowed,prices are up somewhat large number of condominium proj- or down only slightly, according to ects expected to come online over BY JUDITH MESSINA various surveys. the next few years have sparked con- Aided by the unique character of cerns about oversupply. stephanie block has been looking its market—scarce land, little in- Permit applications are down, to buy a two-bedroom condo in vestor-owned housing and a resi- and cautious developers have Manhattan since last year, when dent base of potential buyers—the dropped condo projects and turned new owners decided to turn the city has been able to sidestep the de- to the now-hot rental and hotel building she has lived in for 28 years cline evident elsewhere. markets. into a luxury rental. “The herd mentality of ‘I don’t The search has been dishearten- Strongest market want to miss out’ has evaporated,” ing for Ms. Block. “new york is the strongest market says Jonathan Miller,chief executive “There are no bargains,”she says. in the U.S. for virtually every type of of Miller Samuel Inc., a real estate “I’m hoping for some decline in property, residential or commer- appraisal and consulting firm. “The prices.” cial,” says Steven Kohn, the presi- sense of urgency has gone, and Too bad she’s not in Miami or dent of real estate investment bank there’s a lot of money on the side-

San Diego, where a glut of invento- Sonnenblick-Goldman. “As far as See NYC STEADY on Page 8 buck ennis

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Copyright©2006,Oracle.Allrightsreserved.Oracle,JDEdwards,PeopleSoftandSiebelareregisteredtrademarksofOracleCorporationand/oritsaffiliates. Other names may be trademarks of their respective owners. REPORT ECONOMIC OUTLOOK TOP OF THE HEAP Despite the larger Median sales prices, existing condos and co-ops supply of condos, Percent NYC steady in housing slump prices in third-quar- City 3Q ’05 3Q ’06 change ter 2006 rose 7.6% from the second Continued from Page 6 search and information. quarter and 11.3% Manhattan* $750,000 $880,000 12.7% MIAMI VICE: lines,” he says. Speculators there Sales dropped 36% in from a year earlier. Nationwide,home sales dropped drove prices up Phoenix and 27% in Las In addition, New San Francisco $624,200 $600,600 -3.8% 12.7% and median prices fell 2.1% and serious buyers Vegas in the same period. York has a huge base in the third quarter compared with away in the past year. Many high-profile of prospective buy- Los Angeles $406,200 $384,500 -5.3% the year-earlier period, according to projects in Las Vegas have ers—the 70% of resi- the National Association of Real- been scuttled, and some dents now renting— tors.The downswing follows a five- cities have a year or more many of them San Diego $385,800 $361,100 - 6.4% year period when low interest rates, of inventory, versus the well-heeled, like the generous mortgage terms and in- four to six months of stock Wall Streeters who Sarasota $309,700 $275,600 -11% vestor-fueled demand sent sales and that brokers say is healthy. are expected to get prices soaring. Speculators have never about $24 billion in Las Vegas $197,800 $205,100 3.7% From the beginning of 2003 been welcome in New year-end bonuses. through 2005, the median price of corbis York, where co-ops ac- Other cities lack such condos and co-ops nationwide bert. He operates Condoflip.com, count for 75% of owner-occupied a large base of afflu- Miami $197,800 $189,900 4.0% climbed 34%; they jumped 50% or where owners post units for sale. He housing.In addition to being wary of ent professionals and more in trendy places like Las Vegas, estimates that between 5,000 and marginally qualified buyers, co-op must rely on growth Phoenix $168,700 $181,600 7.6% Miami, Phoenix and San Francisco. 8,000 are listed on the site now. boards almost always shun investors. to spur sales. *Data from Prudential Douglas Elliman Real Estate; Miller Samuel Inc. Speculation eventually pushed The result is that just 2% to 4% of co- In Miami, for Source: National Association of Realtors Flipping frenzy prices to unaffordable levels. Pur- op units here are investor-owned. example, developers investors made an estimated 28% chasers fled, sending sales and aiming to move units of home purchases in 2005. Driving prices south. The median price of a Speculators discouraged are counting on second-home buy- banks looking to make money on the frenzy were those out for quick Miami condo fell nearly 50% be- even in condo buildings, which ers, transplanted suburbanites and condos that are going begging. profits by buying units and selling tween the second and third quarters lack such restrictions, prices are so foreigners who want to take advan- “There will be a market, but not for them almost immediately. Miami of 2006, according to the Realtors high that speculators are discour- tage of the weak dollar or find a safe tens of thousands of units,” he says. brokers say some apartments there trade group. aged from buying a bundle of one- place to park their money. Meanwhile, New York brokers changed hands four or five times Buyers elsewhere backed off,too. bedrooms to flip. “We’re not going to see everyone are holding their breath, insisting during the three-year period. In San Diego, median prices were Even Miller Samuel’s most pes- move here to live in a high-rise on that demand is healthy and praying “It reached a point where a build- off 7% and sales were down 24% in simistic survey showed that though the beach as their primary resi- that the November and December ing would sell out overnight,and five November compared with Novem- prices in Manhattan dropped 4% in dence,”says Jack McCabe,a Florida sales uptick will trail into 2007. months later the flipping would ber 2005, according to Dataquick, a the third quarter, they were 12.7% real estate consultant who is advis- start,” says Florida broker Mark Zil- California supplier of real estate re- higher than in third-quarter 2005. ing hedge funds and investment COMMENTS? [email protected]

8 | Crain’s New York Business | January 1, 2007 REPORT ECONOMIC OUTLOOK Diversified Wall St. firms double profits from 2002

than doubled since 2002, to over Goldman posts its $700 billion globally. best year ever; Hot brokerage stocks some worry about brokerage stocks, traditionally debt instruments valued cheaply by investors because earnings are so volatile, were among the hottest in the market last year. jennifer chiu BY AARON ELSTEIN The American Stock Exchange Broker/Dealer Index rose 24%, Indeed, the Securities Industry goldman sachs Chief Executive compared with a 14% advance for ‘Wall St. is more and Financial Markets Association Lloyd Blankfein summed up Wall the S&P 500. predicts that Wall Street earnings Street’s euphoric mood nicely at a The most sought-after initial important and will decrease 23% in 2007, to recent conference. public offering wasn’t from a prom- $19.6 billion. “Gee, I feel terrific,” Mr. Blank- ising tech firm or fast-growing Chi- more vital than It’s expected that such a decline fein said. “I feel really good. In fact, nese concern, but from the New will stem from a slowdown in the I haven’t felt this good since August York Mercantile Exchange, a com- it has ever been’ U.S. economy, with gross domestic of ’98.” modities marketplace that has oper- product growing only 2.5%, com- No kidding. Goldman Sachs, ated in lower Manhattan since the pared with 3.5% last year. Wall Street’s premiere money-mak- 1870s. ing machine, just finished its most Meanwhile, the city’s stock ex- Fewer jobs profitable year ever,coining $10 bil- changes are racing to acquire rivals than ever and extraordinarily prof- “at their heart,Wall Street’s rev- lion of net income on revenues of in Europe,and investment banks are itable, the cyclical nature of the se- enues are driven by a combination of

$38 billion. buck ennis deep in hiring mode for people who curities industry hasn’t changed. investor demand and economic Put another way,Goldman’s rev- GLOBAL VIEW: The city’s stock exchanges are can build business in Asia. Even the ebullient Mr.Blankfein growth,” says Eileen Fahey, a man- enues every six weeks in 2006 racing to acquire rivals in Europe. Understandably, industry execu- noted that fact. He reminded his aging director at Fitch Ratings. “In equaled all of its revenues in 1995. tives once again feel like masters of audience that his good feelings of a downturn, you’ll see revenues fall No wonder Mr. Blankfein, who has the universe. August 1998 evaporated instanta- quickly, and the firms will react the worked at Goldman for 24 years and market that ended three years ago “Wall Street is more important neously when Russia defaulted on same way they always do—by get- was awarded $54 million in salary were fading fast as Wall Street fin- and more vital than it has ever been,” its debt the following month, caus- ting rid of people.” and bonus last year, feels so good. ished its second-most profitable says George Ball, chairman of in- ing a worldwide panic. Nearly one-fifth of the securities But it’s not just Goldman execu- year in history. vestment bank Sanders Morris “Things happen when they’re industry jobs in New York were tives who have an extra spring in Estimated earnings of $25.6 bil- Harris and chief executive of Pru- least expected, and they happen eliminated between 2001 and 2003. their tasseled-loafer steps. lion trailed only those of 2000. Rev- dential-Bache in the 1980s. from unexpected quarters,” Mr. Even after three excellent years Memories of the painful bear enues industry-wide have more Though Wall Street is bigger Blankfein told the conference. See DIVERSIFIED on Page 10 For charities, the Street is paved with gold tiquette news flash: If your blue-chip chari- rate chieftains are sources of some of ty’s gala has raised less than $1 million, don’t an- the largesse, but much of this high- octane event frenzy is fueled by the nounce it at the dinner.The honoree might be em- financial services industry. barrassed. Last year’s bonuses on Wall It’s astonishing. The event business is going Street were estimated to be gangbusters, bigger and bolder than ever. Groups that normal- $21.5 billion. This year’s pool is ex- E pected to jump by 10% to 15%.Some ly had one or two large events a year now go for three or four be- people will get tens of millions of cause of the money to be made. More organizations of every dollars. The av- erage salary of type are getting into Alzheimer’s Associa- employees in the GALA REWARDS events,trying to diversi- tion raised $3.1 million securities indus- fy their funding base. each. try is 5.1 times NYU Child Study Center All this is happening Garnering between that of other $6 MILLION while groups are run- $2 million and $3 mil- New Yorkers,up Guggenheim Museum ning their annual fund lion were Lenox Hill from 2.5 times $4 MILLION

drives and capital cam- Hospital, the Whitney in 1990. The christine a. butler Samuel Waxman Cancer paigns that total several Museum,the New York rule of thumb is Foundation GIVING GUYS: Key supporters (from left) Gary Cohn, Kenneth Langone, Lloyd billion dollars. Public Library, Jazz at that securities Blankfein and Stanley Druckenmiller at the NYU Child Study Center’s recent fund-raiser. In just the past sev- Lincoln Center, the jobs account for $4 MILLION eral months, roughly New York-Presbyter- about 5% of all Metropolitan Opera three dozen events have ALAIR ian/Weill Cornell jobs in New $3.8 MILLION dation,established by Paul restaurants, Mercedes dealers, jew- grossed more than $1 Medical Center, Bette York but rough- New York Philharmonic Tudor Jones II, the elers, caterers, limo services, florists, million each. The Midler’s New York ly 20 percent of founder of Tudor Invest- Armani stores, the residential and TOWNSEND $3.1 MILLION leader was the New Restoration Project,the the wages. ments. His pals, many commercial real estate markets … York University Child Food Allergy Initiative, That’s why, Alzheimer’s Association from hedge funds, helped and nonprofits. Study Center dinner, which raised the S.L.E. Lupus Foundation and for many organ- $3.1 MILLION the charity raise $48 mil- Because of the city’s prosperity, more than $6 million. Other bene- the Committee to Protect Journal- izations, the key lion in one night. Last 2006 was a decent year for most ficiaries included the Guggenheim ists. to a successful year’s event was so large it nonprofit groups. Next year is ex- Museum and the Samuel Waxman There were more than 20 organ- gala is an honoree from finance, co- was held at the Javits Center. pected to be modestly better overall, Cancer Research Foundation, both izations that raised at least $1 mil- chairs from finance and an invita- There is such abundance today in but sector leaders will be watching of which raised $4 million at their lion from their parties. tion list studded with movers and New York that $100 lunches at the Wall Street closely and praying for events. The Metropolitan Opera New York is awash in money,and shakers in finance. Four Seasons and $1,500 gala tick- another banner bonus year. But no took in $3.8 million, and the New those who have it are spending it at It doesn’t get better than the an- ets can come to seem the norm. one should forget that Wall Street York Philharmonic and the swank affairs.Real estate and corpo- nual gala for the Robin Hood Foun- When Wall Street booms, so do has big downs as well as ups.

January 1, 2007 | Crain’s New York Business | 9 REPORT ECONOMIC OUTLOOK

WHAT A DEAL: George Caputo appreciates the big-box combination of quality clothing at Mass market transforms good prices. the retail landscape

Discounters invade RISING COMPETITION New York, altering Number of establishments. buyer expectations, CLOTHING TOTAL RETAIL shopping habits 2000 2004 2000 2004 Bronx 473 531 Bronx 3,143 3,445 BY ELIZABETH MACBRIDE Brooklyn 1,267 1,390 Brooklyn 7,079 8,040 kohl’s has won over George Ca- Manhattan 3,153 3,289 Manhattan 11,616 11,824 puto of Staten Island. Though he Queens 923 990 Queens 6,104 6,665 was skeptical when the store opened Staten Island 204 207 Staten Island 1,233 1,256 about two years ago on the North Shore, the retired police officer just Source: U.S. Census Bureau can’t resist the prices. Six dollars less than he had been paying for a pair of brand-name which statistics are available, ac- man Mike McMahon, a Democrat pants? He’ll take it. “The quality is cording to the U.S. Census Bureau. who represents Staten Island’s good, too,” Mr. Caputo says. The overall price figures might North Shore and has been mostly He is part of a shopping revolu- have been even more impressive if neutral about the incursion of big- tion in New York.Thanks largely to Wal-Mart had not been blocked box retailers into New York— an invasion of national discounters from opening here.For example,one though he does oppose Wal-Mart. like Kohl’s, residents are at last get- study in another market showed that “We need to establish a climate ting a taste of the lower prices for where both [the local and the na-

clothing and household goods long tional stores] can flourish,” Mr. buck ennis enjoyed by consumers elsewhere. ‘We need both McMahon says. “Competition is finally coming The past few years have seen costs and difficulties of doing busi- H&M now has 17 locations in New to New York,” says retail expert local and forays by companies including Tar- ness here. York City. Robert Spector, who is working on get, which has opened two stores in Now that the need to expand has These days, a Macy’s diehard a book about mom-and-pop stores national stores the city and has plans for several brought such retailers to the city, may also visit Target or slip into in Queens. more, and Kohl’s, which is up to it’s reasonable to expect that they Mango, which will open a new store to flourish’ five locations. Category killers— will have the same effect here, in SoHo this year. The Spanish Inevitable arrivals retailers offering an array of mer- according to economist Barbara chain sells stylish women’s career of course, New Yorkers still pay chandise at low prices—including Byrne Denham. clothes for moderate prices, like a more—about 10% more—than oth- Bed Bath & Beyond and Babies “R” pair of tailored trousers for $89. er urban Americans for just about Us, are also opening stores at a rap- Broader options “Some of the same consumers everything. But they’re spending id-fire pace. altered shopping habits are also visit all of them,” Mr. Cohen says. less on clothing as discounters and the giant’s presence forced lower The growth of retail in recent helping to reduce prices. Even fash- Mr. Caputo, for one, is an un- other chains move into the area. pricing on grocery items among its years shows up in the employment ion-conscious New Yorkers are abashed comparison shopper and In fact, consumers in metro New competitors in the area. statistics. New York retail jobs have more willing to shop at stores that bargain seeker. When he saw a York paid 10% less for clothing in Wal-Mart is expected to breach risen 7.1% since November 2001. they may once have spurned, says leather jacket at Burlington Coat 2006 than they did in 2000, accord- the city line at some point. Politi- The big chains rely on econ- Marshal Cohen, retail industry an- Factory Warehouse in Staten Island ing to the Consumer Price Index. cians are paying attention to the fact omies of scale and access to cheap alyst at marketing firm NPD for $100, he snapped it up. The cost of furniture and other that discount-starved New Yorkers imports. Group. “My son had the exact same jack- household goods also dropped are taking their business to mass- Their effect on what consumers The opening of the first H&M et he bought somewhere else—for slightly. market retail locations now ringing pay for all kinds of things has long here six years ago was a milestone. $300,”Mr.Caputo says with a touch The number of clothing stores in the metropolis. been noted nationally but has been Fashionistas who wouldn’t have set of smugness. New York City rose 6.4% between “In many cases, the arrival of the muted in New York because few foot in other discounters flocked to 2000 and 2004, the latest year for chains is inevitable,” says Council- chains braved the higher real estate the Swedish chain’s trendy designs. COMMENTS? [email protected] Diversified firms are thriving

Continued from Page 9 Most big firms now have more standing today—more than the val- in the markets,there are 22,000 few- balanced sources of revenue. ue of all the shares listed on the New er securities-related positions here In 2000, for example, Goldman York Stock Exchange. than there were in 2000. Many of generated 68% of its revenues from the 178,000 that remain in New selling or trading stocks. But the Credit concerns York would also disappear if elite firm now derives just the credit derivatives market sur- profits began to slide, 45% of revenues from equi- vived a scare last year when the rat- though it’s impossible to tell ties, thanks to strong gains ings of two huge issuers of debt, which ones would be cut. 24%ADVANCE IN in the trading of bonds and General Motors and Ford, were IPO and merger special- the American commodities—activities downgraded. But it remains untest- Stock Exchange ists got the biggest share of Broker/Dealer that are nonetheless vulner- ed for the most part. pink slips in 2000.They had Index able to a sharp slowdown. “Lots of people spend lots of taken public far too many Analysts worry most time coming up with different sce- technology-related companies that about credit derivatives, instru- narios, but the fact is that no one were without profits—or even rev- ments that let institutional investors knows what would happen to the enues. bet on the likelihood of corporate market if there was a massive default defaults. or some other kind of disruptive Shedding jobs These securities barely existed event,” says one credit derivatives when that pipeline dried up, the when Russia’s default triggered a executive. bankers couldn’t pick up the slack, crisis in the debt markets, but $26 BACK ON TOP: Goldman CEO Lloyd Blankfein is reveling in the firm’s most profitable year ever— and the result was a flurry of layoffs. trillion worth of derivatives are out- COMMENTS? [email protected] with bonuses to match—but warns that “things happen when they’re least expected.”

10 | Crain’s New York Business | January 1, 2007 BRAVO!

A superb example of an effective business/arts partnership, the Lincoln Center Corporate Fund raises vital unrestricted funds from corporations and professional firms for distribution to nine world-class performing arts companies and two acclaimed professional training academies resident at Lincoln Center. The unrestricted nature of these funds permits the constituents to use them to maximum effect — which includes engaging in creative educational programming, presenting exciting new productions, and mounting free performances. For information about the Corporate Fund and the benefits available to participating companies, please call (212) 875-5430.

LEADERSHIP COMMITTEE GOLDEN CIRCLE BENEFACTORS The Blackstone Group Mutual of America CHAIR $250,000 and more $25,000 and more The Bloomingdale’s Fund of the Federated Newsweek Thomas A. Renyi Lincoln Center Business Council Arrow Electronics Department Stores Foundation Oppenheimer Funds, Inc. The Bank of New York Company, Inc. Lincoln Center Real Estate and AXA Foundation Canon U.S.A., Inc. Oxxford Clothes Robert M. Amen Construction Council Blank Rome LLP Charles F. and Anne Meckes Niemeth Paul Stuart International Flavors & Fragrances Inc. MetLife Foundation Crain’s New York Business Foundation Peerless Importers David A. Coulter The Starr Foundation Hess Corporation Chevron Corporation PepsiCo Warburg Pincus, LLC HSBC Bank USA CIT Group Inc. Philips Electronics North America Blair W. Effron GRAND CIRCLE Interpublic Group Crane Company Pillsbury Winthrop Shaw Pittman Centerview Partners LLC $200,000 and more Kohlberg Kravis Roberts & Co. Cravath, Swaine & Moore Polo Ralph Lauren Corporation Andrew L. Farkas Avery Condominum, KPMG LLP Deloitte Randa Corporation Island Capital Group an Extell Development L. Jay Grossman Foundation Inc. Dewey Ballantine Service Directions Inc. Mary Beth Farrell CB Richard Ellis The Marc Haas Foundation Emmet, Marvin & Martin, LLP SESAC AXA Financial, Inc. The New York Times Company Foundation Marsh & McLennan Companies, Inc. Barry S. Friedberg SMBC Global Foundation, Incorporated Victor F. Ganzi News Corporation Fulbright & Jaworski, L.L.P. St. Paul Travelers The Hearst Corporation OUTSTANDING Pfizer Inc Gabelli Asset Management Sugar Foods Corporation Martin J.G. Glynn LEADERSHIP Restaurant Associates Gibson, Dunn & Crutcher LLP Thelen Reid & Priest LLP HSBC Bank USA $150,000 and more Toyota Motor North America, Inc. The Guardian Life Insurance Company Toshiba America, Inc. Richard A. Goldstein Citigroup Transammonia Inc. of America Weiser LLP Maurice R. Greenberg JPMorgan Chase Xerox Corporation Heller Ehrman LLP Warburg Pincus C.V. Starr and Co. New York Stock Exchange Foundation, Inc. Integral Pet Associates, LLC Robert A. Iger The William Randolph Hearst Foundations DISTINGUISHED PATRONS Interaudi Bank DONORS Walt Disney Company $15,000 and more ITOCHU International Inc. $3,000 and more Peter L. Malkin, Esq. LEADERSHIP The Annenberg Foundation J.C.C. Fund of the Japanese Chamber Alan B. Slifka Foundation Wien & Malkin, LLP $100,000 and more Arnhold and S. Bleichroeder of Commerce and Industry of Cadwalader, Wickersham & Taft Bert N. Mitchell Altria Group, Inc. Holdings, Inc. New York, Inc. Café Fiorello/Fireman Hospitality Group Mitchell & Titus, LLP American Express Company Camargo Correa J.H. Cohn LLP Daiwa Securities America Inc. William E. Mitchell Angelo, Gordon & Company CALYON Corporate and Investment Bank KEMET Corporation The Estée Lauder Companies Inc. Arrow Electronics, Inc. The Bank of New York Colgate-Palmolive Company Knoll, Inc. Fishman & Tobin, Inc. Bruce E. Mosler Benenson Capital Partners Davis & Gilbert LLP Kramer Levin Naftalis & Frankel LLP French & Company, Inc. Cushman & Wakefield, Inc. Bristol-Myers Squibb Foundation, Inc. The Durst Organization Lazard Great Performances Charles F. Niemeth, Esq. BusinessWeek Edison Properties, LLC Mann Publications Leucadia Foundation Baker & McKenzie LLP Con Edison Emily and Eugene Grant Family McMullan Family Fund Liz Claiborne Foundation Michael O’Brien, Esq. Cushman & Wakefield, Inc. Foundation Mitsubishi International Corporation Mahoney Cohen & Company, CPA, P.C. King & Spalding LLP Eastdil Secured Estreich & Company, Inc. MTV Networks Milberg Factors, Inc. Douglas L. Paul Fisher Brothers Feinberg Properties, LLC National Starch and Chemical Foundation Mitzi & Warren Eisenberg Family Credit Suisse Securities (USA) LLC FORTUNE Fidelity National Title Insurance Neiman Marcus Group Foundation William R. Rhodes The Jeffries Companies Fisher Scientific International Inc. North Fork Bancorporation, Inc. The Norinchukin Foundation, Inc. Citigroup, Inc. Lehman Brothers Goldfarb & Fleece Oceanic Heritage Foundation N.S. Bienstock, Inc. Janet L. Robinson Harry and Linda Macklowe Gotham Construction Company LLP Ogilvy & Mather Worldwide Rockefeller Group International, Inc. The New York Times Company Mr. and Mrs. Peter L. Malkin Gregory P. Joseph Law Offices, LLC Phillips-Van Heusen Corporation RSM McGladrey, Inc. Michael I. Roth Newmark Knight Frank The Herman Goldman Foundation Roche Showman Fabricators, Inc. Interpublic Group Paramount Group, Inc. Icon Parking Systems Rolex Watch U.S.A., Inc. Toray Industries (America), Inc. Charles W. Scharf RBS Greenwich Capital International Flavors & Fragrances Inc. Rothstein Kass & Co. Vandenberg & Feliu, LLP JPMorgan Chase & Co. The Walt Disney Company Johnson & Johnson Sumitomo Corporation of America Anonymous Richard Silverman Florence & Robert Kaufman Bank of America OUTSTANDING Kekst and Company Incorporated FRIENDS and 26 supporters and contributors John C. Simons BENEFACTORS Ruth and Leonard Litwin $5,000 and more under $3,000 as of December 8, 2007. Corporate Fuel Partners LLC $75,000 and more Motorola, Inc. Abbey Spanier Rodd Abrams & Paradis LLP For information please call Caitlin A. Sy Sternberg, CLU Bank of America Oak Hill Realty Angel/EMI Classics/Virgin Classics New York Life Insurance Company Morgan Stanley Public Service Enterprise Group Barclays Capital Quinn, Director, The Lincoln Center Howard Stringer Sony Corporation of America Real Estate Media, Inc. Bloomberg Corporate Fund, 212-875-5430. A copy Sony Corporation of America Verizon Richard H. Holzer Memorial Foundation Boston Properties of the last annual report filed with the Alair A. Townsend Steven Roth Business Loan Express NY State Department of State may be Crain’s New York Business DISTINGUISHED The Segal Company Carter Ledyard & Milburn LLP obtained upon request by writing to the John B. Veihmeyer BENEFACTORS Sidley Austin LLP The Coach Dairy Goat Farm State of New York Department of Law, KPMG LLP $50,000 and more Robert F.X. Sillerman and Comcast Corporation Charities Bureau,120 Broadway, New York, Peter A. White Credit Suisse Laura Baudo Sillerman Commerce Bank NY 10271 or Lincoln Center for the U.S. Trust Corporation Goldman, Sachs & Co. Silverstein Properties, Inc. Corning Incorporated Foundation Performing Arts, Inc., 70 Lincoln Center Motokazu Yoshida IBM International Foundation Sullivan & Cromwell Corporate Fuel Partners Plaza, NY, NY 10023-6585 Mitsui & Co. (U.S.A.), Inc. King & Spalding LLP TIAA-CREF David and Susan Coulter James D. Zirin, Esq. Merrill Lynch & Co. Foundation, Inc. Tishman Speyer Properties Fiduciary Trust Company International Sidley Austin Mitsui USA Foundation U.S. Trust Corporation Foundation First Manhattan Co. New York Life Foundation Wachovia Fitch, Inc. EX OFFICIO Paul Newman Weil, Gotshal & Manges LLP G-III Apparel Group, Ltd. Frank A. Bennack, Jr. Ogden CAP Properties, LLC Grey Global Group Inc. Chairman, Lincoln Center for the Performing Omnicom Group PATRONS Harris, Rothenberg International Arts, Inc. PricewaterhouseCoopers LLP $10,000 and more Kenneth Cole Productions Reynold Levy Time Warner A&E Television Networks The Leir Charitable Foundations President, Lincoln Center for the Performing UBS Automatic Data Processing, Inc. Leon Lowenstein Foundation, Inc. Arts, Inc. Vornado Realty Trust Barnes & Noble, Inc. McCANN WORLDGROUP Wyeth Belo Corp. Mitsui Fudosan America, Inc.

Lincoln Center applauds over 400 Corporate Fund donors, whose contributions benefit 11 exceptional organizations: The Metropolitan Opera • New York Philharmonic • The Juilliard School • New York City Ballet • New York City Opera The Film Society of Lincoln Center • The Chamber Music Society of Lincoln Center • Lincoln Center Theater School of American Ballet • Jazz at Lincoln Center • Lincoln Center for the Performing Arts, Inc. LINCOLN CENTER CORPORATE FUND Business Priorities.

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own shots is important to me.” Freelancing is also increasingly a Independent workers come of age point of entry into the labor market for young people who haven’t fig- ured out what they want to do or Freelancers fulfill NYC: FREELANCE don’t want to tie themselves down. a role that’s vital NATION Every day is casual dress to many sectors, ean murphy, 36, has reinvented NUMBER OF FREELANCERS herself several times since graduat- but full of risks As many as 400,000 ing from the New School Universi- AGE 54% are between 25 and ty. She’s been an administrative as- 29; 9% are over 50 sistant, a self-defense instructor, an BY JUDITH MESSINA office manager and a traffic-safety EDUCATION 85% have a college teacher. glenn daily was beginning to feel degree; 31% have a graduate or In the process, Ms. Murphy that he’d had enough of working at professional degree learned bookkeeping skills, which big companies, including a four- POLITICS 93% are registered she has now parlayed into a free- year stint at General Electric. So in voters lance business, Moxie Bookkeep- 1990, when the outfit he was work- ing, with 40 clients. ing for merged with an accounting MEDIAN INCOME $50,000, “I have freedom and flexibility, firm and eliminated his job, Mr. which is 20% higher than and I get to wear tennis shoes—even Daily decided to ditch corporate life the median for the city though I may be going to a law of- and set up his own shop. FINANCIAL SECURITY 47% set fice,” Ms. Murphy says. He has never looked back.Today, aside money for retirement every As much as they value their inde- he has a thriving insurance consul- month pendence, freelancers worry about tancy and aims to expand his servic- money and affordable health care. es. INDUSTRY CONCENTRATIONS Though most consider themselves “I like the creativity, the flexibil- Advertising, publishing, film and middle-class,their incomes don’t al- ity,”says Mr.Daily,54.“I can change television, technology, the arts ways reflect that. on a dime, change a price or stop Many live in the outer boroughs providing a service. I don’t have to because the costs there, though not go to any committee.” New York City has one of the CUBICLE-FREE: “The fact that I can call my own shots is important to me,” says Scott Lange, a insignificant, are lower than they Mr. Daily is one of the hundreds largest—if not the largest—free- freelance animator specializing in marketing and promotions. would be in Manhattan. of thousands of independent work- lance workforces in the nation, with “I’m just barely making a living,” ers in key New York City industries, cost-conscious businesses increas- says Ms. Kravitz, who earned less including advertising, media, pub- ingly offering project work rather union—created in the mid-1990s to ronments.Ms.Afshani,32,found her than $30,000 in the 10 months last lishing, entertainment, fashion and than full-time jobs. serve, among others, the footloose work as an in-house lawyer for War- year in which she was on her own. the arts. Having access to information techies of Silicon Alley—offers ner Brothers in Los Angeles “a bit “When I decided to try freelancing, Highly educated, they are found and computing power that 15 years health care and other forms of insur- stagnant.” She came East to work in I braced myself for hard times.” in occupations like bookkeeping, ago was available only to large enter- ance and runs a Web version of a hir- fashion and is now a freelance stylist. The money can be significant, if computer programming, copywrit- prises, freelancers can now work at ing hall, posting members’ profiles Similarly, database consultant erratic,for those who stick it out and ing, fashion styling and many more. home as easily as at an office. and contact information on its site. Gladys Kravitz, 37, was frustrated develop a clientele.After 10 years as And whether they’re freelancing by Lately, they have also been get- The 37,000-member nonprofit is that there wasn’t enough time or a freelance art director, Abbe Eck- design or necessity,most say they are ting support from professional asso- also mounting a campaign to win em- money at the nonprofit agencies that stein, 40, makes $90,000 to ecstatic to be their own boss. ciations and other groups, like the ployment law changes that would employed her for her to do the kind $120,000 in a good year—more than give freelancers some of the protec- of work she wanted to do. she did as an employee—and can put Trade-offs for autonomy tions, such as unemployment insur- She quit her last position even money into a retirement account. still, they also worry about the ‘They have the ance, to which workers in traditional though she didn’t have anything else Mr. Lange grossed more than trade-offs they’ve made for inde- jobs are entitled. lined up. Ms. Kravitz now charges $300,000 in each of his first and sec- pendence, especially the lack of fi- same needs as “Independent contractors have $65 to $100 an hour as an independ- ond years of freelancing. After los- nancial security. the same needs [as other workers] ent consultant. ing his biggest client, he saw his in- Their median income is other workers, but get left out of the safety net,” Scott Lange left his job at adver- come plummet to $50,000 in the $50,000. Though many of them says Professor Tom Kochan, co-di- tising agency Foote Cone & Beld- third year. He’s since climbed back save for retirement, few have much but no safety net’ rector of the Institute for Work and ing to freelance full-time as a creator to the $200,000 mark. put away,according to a recent study Employment Research at the MIT of 3-D animation programs for Ms. Afshani says: “People have a Freelancers Union, an organization Sloan School of Management. pharmaceutical marketing cam- false impression that freelancing is providing services and advocacy. Many workers opt to go freelance paigns. cushy.But a lot of the time, I end up “They keep crucial industries after losing a job, but a number are “I’m not the easiest guy to get working more hours than if I had a running, but they pay a price for it,” Freelancers Union, that fill the need choosing to strike out on their own— along with,” says Mr. Lange, who full-time job.” says Sara Horowitz, the union’s for education, networking oppor- job or no job.Many,like Deborah Af- has incorporated as Turbulence Ef- founder and executive director. tunities and other services. The shani, feel stifled in corporate envi- fects Inc.“The fact that I can call my COMMENTS? [email protected] PHOTOGALLERY LISTINGS OF LOCAL EVENTS 40 UNDER 40 PROFILES AND PHOTOS LATENY BREAKING BUSINESS DIRECTORY LOCALTOP LISTS FOR BUSINESS LEADSNEWS RESTAURANT REVIEWS INTERACTIVELINKS TO MEMBERSHIP ONLINE ORGANIZATIONS POLLS SEARCHABLE ARCHIVES COMPREHENSIVE INDUSTRY PAGES

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January 1, 2007 | Crain’s New York Business | 13 REPORT ECONOMIC OUTLOOK

KEVIN RYAN left Web 2.0 revives DoubleClick to start ShopWiki, Panther Express and Music Nation. Together, the new companies employ 60 New York’s people. tech industry

Second dot-com wave promises more sustained growth; big companies dominate

BY ELIZABETH MACBRIDE the second wave of the Web is ar- riving in New York, creating hun- dreds of small businesses,thousands of jobs and the promise of a more sustained economic benefit than the last Internet boom. Businesses from shopping por- tals to information services to music sites are springing up around the jennifer chiu city, as more entrepreneurs seize on technological advancements and guaranteed to be someone doing consumers’ increasing comfort something on the Internet.” with the Web. Described loosely as While difficult to quantify, the

Web 2.0, this tech revival involves economic impact can be seen in corbis companies that create close—and computer systems and design jobs, valuable—connections with indi- which have grown about 6% this Finally, the startups’ business neurs. For instance, Etsy, a shop- item and a 3.5% commission if the vidual users. year to just under 40,000.The com- models are certainly more sophisti- ping site for handmade crafts, was item sells.The site, whose first-year Sites such as San Bruno, Calif- puter category peaked at 50,200 in cated this time around. Rather than born in the Fort Green, Brooklyn, costs of about $1 million were cov- based YouTube and Los Angeles- 2000, with the new media boom rushing to be the first to claim a walk-up of Robert Kalin about 18 ered by two angel investors and one based MySpace have generated the probably directly accounting for space in a particular area—say, aim- months ago. venture capital fund, is now ap- most attention and big buyout some 20,000 of those jobs. Of ing to become the first Web pet- proaching breakeven. prices. But the opportunity is course,the economic energy the ini- food seller—companies are seeking A commission if item sells With nine employees, the firm bringing New York’s serial Web en- tial public offerings spun off to Wall niches in existing Internet markets. “my b.a.wasn’t goingto get me any just moved into a 6,000-square-foot trepreneurs and others back into the Street was much more powerful. “This is very targeted, and much kind of work I wanted to do,” says office near the Manhattan Bridge. action. The new Web wave in New York more effective,” says Robert John- Mr.Kalin,who founded the compa- “The landlord really wanted a Web “Every single month, there are is different from the new media ston, founder of the Executive ny with three people.After dabbling firm,”says Mr.Kalin.“He insisted on more and more companies,” says boom in several important ways. Council of New York, an executive in other Web services, they eventu- putting the dot-com after our name.” Kevin Ryan, a DoubleClick Less cash is flowing as venture cap- networking organization. “Five to ally hit on the model for Etsy,which founder who left the big Internet italists are being held back by the seven years out, you’re going to see a charges users 20 cents to post an COMMENTS? [email protected] advertising firm a year ago to start wariness of their funders, who re- lot of startups thriving.” three companies, which together member too clearly the bust of 2001. Some entrepreneurs say that employ 60 people. Web 2.0 is already playing to the Fred Wilson, a venture capitalist Heavy hitters city’s strengths. With its concentra- GETTING ABOARD whose Flatiron Fund led the new big companies, which largely left tions of talent in advertising and New Web 2.0 companies in NYC. media boom in the city in the 1990s, the new media boom to small firms, media, New York is able to supply says his new fund, Union Square are more involved this time around. the creative marketing energy that Ventures, gets about 10 calls a week They are investing in startups, ac- Web 2.0 companies need if they are CITIZENBAY.COM Manhattan unlike competitors, lists products without payment from retailers from Web 2.0 companies in the quiring Web 2.0 companies, and going to engage consumers. Publisher of local news written by New York area.So far,the $125 mil- developing projects in-house. One “You’re going to see big compa- citizen journalists Founded 2005 lion fund, founded in 2003, has in- example often cited is American nies hiring ad agencies to develop Privately owned by founders vested in eight companies, seven of Express, with its online services for the content,” says Mike Kelly, part- Founded 2006 them local. small businesses and its hit Web ver- ner with PricewaterhouseCoopers’ Privately owned by founder, 100,000 to 200,000 hits “We are really back to where we sion of the classic Atari Pong game, advisory practice, offering as exam- venture capitalists a month were in the late 1990s,” he says. “If which it used to draw attention to ples drug companies that post tuto- 10,000 hits per week THUMBPLAY Manhattan you go to a dinner party, there’s its sponsorship of the U.S. Open. rials online or fashion companies that allow customers to participate ETSY Brooklyn Retailer of wireless entertainment, such as ring tones, games, images in developing a fall line. Retailer of handcrafted items New York is surpassing Boston and videos for cell phones IPOS: THINGS OF THE PAST Founded 2005 as the East Coast home of choice for Founded 2004 IT’S UNLIKELY THAT MANY NEW FIRMS will emulate Internet 1.0 companies by new technology companies, says Privately owned by founders, Privately held by founders, venture holding an initial public offering. Tougher regulations and investors’ Mr.Ryan,whose new companies are venture capitalists reluctance make that path more difficult. Rather, companies are growing a shopping site, ShopWiki; a net- capitalists Nearly 500,000 hits a month slowly or being acquired. Some of the companies that were bought have working company that helps Web 6 million unique visitors a month been moved to the West Coast, but others are staying in New York. sites create faster connections for MUSIC NATION Brooklyn WALLSTRIP Manhattan Manhattan-based Relegence Corp. gathers business information from their consumers, called Panther Ex- Talent competition, Daily humor/information site sources around the globe and allows people to personalize what news they press Inc.; and a music site, Music partnership with Epic Records want delivered to their desktops. Acquired this fall by AOL, Relegence, which Nation, which is running an online about Wall Street Launches Jan. 15 sells its products to many financial services companies, will remain music competition. Founded 2006 headquartered in New York. With AOL’s support, the 60-employee Relegence “It used to be that people asked Privately owned by founders Privately owned by founders and plans to go on a hiring spree. me why we were in New York,” he investors “The goal is to keep growing it,” says Steven Fadden, Relegence’s says. “Today, no one even asks me SHOPWIKI Manhattan president. that.” Comparison shopping site that, 60,000 hits a month As in the 1990s, companies are driven by the hopes of entrepre-

14 | Crain’s New York Business | January 1, 2007 REPORT ECONOMIC OUTLOOK A snapshot: key city stats Data on unemployment and jobs, real estate construction and sales, taxes, city spending and inflation show the health of the overall economy

January 1, 2007 | Crain’s New York Business | 15 BOOKKEEPING SERVICES TELECOMMUNICATIONS PUBLIC & LEGAL NOTICES

Notice of App. For Auth. For Foreign Ltd. Notice of Qualification of Willowbend NOTICE OF FORMATION OF LIMITED Liability Co. (FLLC.) Name: MEADORE Development LLC, filed under the original LIABILITY COMPANY. Name: HAMPTONS SCULPTURES LLC Filed with Sec. of State of name The Willowbend Development LLC, MEDIA, LLC. Application for Authority was NY (SSNY) 07/24/06. Jurisdiction: Delaware. App. for Auth. filed Sec'y of State (SSNY) filed with the Secretary of State of New York EMERGENCY Organized: 07/20/06. Off. Loc: New York Co. 10/24/06. Office location: NY County. LLC (SSNY) on 10/24/06. The LLC was originally SSNY is designated as agent of the FLLC upon org. in MA 11/26/01. SSNY designated as filed with the Secretary of State Nevada on COMMUNICATIONS whom process against it may be served. SSNY agent of LLC upon whom process against it 09/18/06. Office location: New York County. shall mail a copy of any process to the THE may be served. SSNY shall mail copy of SSNY has been designated as agent of LLC BUSINESS SERVICES LLC, 246 fifth Avenue, Ste. 504/505, New process to CT Corp., 101 Federal St., upon whom process against it may be served. SYSTEMS York, NY 10001. Jurisdiction office address: Boston, MA 02110. MA office addr.: 130 SSNY shall mail a copy of process to the LLC, 32 Loockerman Square, Suite 109, Dover, Willowbend Dr., Mashpee, MA 02649. Art. 257 Park Avenue South, 5th Floor, New York, 9/11: We Will Never Forget SPECIALISTS DE 19904. A copy of the articles is filed at of Org. on file: SSMA, One Ashburton Pl., New York 10010. Purpose: For any lawful NEW YORK INCLUDES: State Filing Fees, Company Seal & Book, Certificate of • FREE PICKUP Delaware Secretary of State, Division of Boston, MA 02108. Purpose: any lawful purpose CORPORATION Incorporation or Organization, Company Corp., P.O. Box 898, Dover, DE 19903. activities. $16 4 95 Minutes, Corporate ByLaws, Stock/ AND COMPLETE Membership Certificate, Preliminary Purpose: Any lawful act or activity. Notice of Formation of Claudia M. Cooke, CALL FOR FREE Name Search, Attorney’s Fee DELIVERY Notice of Qualification of Blackstone C INFORMATION ® M.D., PLLC. Arts. of Org. filed with NY Dept. PACKET www.amerilawyer .com Fund L.P., App. for Auth. filed Sec'y of (212) 962-1000 (516) 338-9100 • 48 HOUR Notice of Formation of C IMPERIAL, LLC, a of State on 11/16/06. Office location: NY NEW YORK LLC State (SSNY) 6/9/06. Office location: NY County. Principal business address: 400 E. 95 NEW YORK CITY LONG ISLAND TURNAROUND ON domestic Limited Liability Company (LLC). $234 Spiegel & Utrera, P.A., P.C. County. LP org. in DE 6/7/06. SSNY 85th St., Apt. 6A, NY, NY 10028. Secy. of State COMPLETE 45 John St., Suite 711; NYC © L. Spiegel REPAIRS Articles of Organization filed with Secretary of State on 10/19/06. NY Office location: NEW designated as agent of LP upon whom designated as agent of PLLC upon whom • FREE ENGRAVING YORK County. Secretary of State is designated process against it may be served. SSNY process against it may be served. Secy. of shall mail copy of process to Attn: J. FINANCIAL PLANNER • SHORT AND LONG as agent upon whom process against State shall mail process to: Claudia M. Cooke, the LLC may be served. Secretary of State Tomilson Hill, 345 Park Ave., NY, NY M.D., 133 E. 73rd St., Ste. 506, NY, NY 10021 TERM RENTALS 10154. DE office addr.: CSC, 2711 a shall mail a copy of any process against the Purpose: medicine. LLC served upon him/her to C/O SOVEREIGN Centerville Rd., Wilmington, DE 19808. PARTNERS, LLC, 38 E. 57TH ST., NEW Cert. of LP on file: SSDE, Townsend Bldg., Notice of Formation of DGM Realty YORK, NY 10022. LATEST DATE TO Dover, DE 19901. Name/addr. of each gen. Associates, LLC. Arts. of Org. filed with Secy. The largest Motorola Dealer in New York State DISSOLVE: DECEMBER 31, 2036. Purpose: ptr. avail. at SSNY. Purpose: any lawful of State of NY (SSNY) on 12/14/05. Office 307 Fifth Avenue, NY 10016 To engage in any lawful act or activity. activities. location: NY County. SSNY designated as agent of LLC upon whom process against it 212-532-7400 Notice of Formation of NAF SETTLEMENT may be served. SSNY shall mail process to: Notice of Formation of 1510 Associates LLC. ADVISORS, LLC, a domestic Limited www.metrocomradio.com Arts. of Org. filed with NY Dept. of State on c/o Dean Maltz, 1735 York Ave., 14H, NY, Liability Company (LLC). Articles of NY 10128. Purpose: any lawful activity. 12/1/06. Office location: NY County. Secy. of Organization filed with Secretary of State on State designated as agent of LLC upon 11/17/06. NY Office location: NEW YORK Notice of Formation of DELI IP1, LLC, whom process against it may be served. County. Secretary of State is designated as domestic Limited Liability Company (LLC). REAL ESTATE Secy. of State shall mail process to: c/o agent upon whom process against the LLC Articles of Organization filed with Secretary of Kenbar Group, 1500 Lexington, NY, NY may be served. Secretary of State shall State on 11/13/06. NY Office location: NEW 10029, principal business address of the mail a copy of any process against the LLC YORK County. Secretary of State is designated LLC. Purpose: any lawful activity. served upon him/her to C/O THE LLC, 105 OFFICE SPACE as agent upon whom process against the MADISON AVENUE, NEW YORK, NY 10016. LLC may be served. Secretary of State shall Purpose: To engage in any lawful act or activity. Notice of Formation of Advanced Solutions mail a copy of any process against the LLC & Supply LLC, Art. of Org. filed Sec'y of served upon him/her to C/O ODELL Notice of Formation of New York State (SSNY) 11/10/06. Office location: NY LAMBROZA, 19 EAST 80TH STREET, #4-B, Cardiovascular Associates, PLLC. Arts. of EXECUTIVE OFFICE SUITES County. SSNY designated as agent of LLC NEW YORK, NY 10021. Purpose: To engage Org. filed with Secy. of State of NY (SSNY) on upon whom process against it may be in any lawful act or activity. served. SSNY shall mail copy of process to 3/25/2004. Office location: NY County. 212.573.0909 c/o Oded Levy, Kaia Investment Mgmt., SSNY designated as agent of LLC upon whom 767 Third Ave., 6th Fl., NY, NY 10017. process against it may be served. SSNY shall Notice of Formation of Copernicus Institutional Purpose: any lawful activities. mail process to: c/o Epstein Becker & Green, Investors, LLC. Arts. of Org. filed with NY FurnishedOfficesNYC.com P.C., 250 Park Ave, NY, NY 10177-0077, attn Dept. of State on 10/17/06. Office location: NY County. Secy. of State designated as agent of Notice of Qualification of Centre Asset Philip M. Gassel, Esq. Purpose: practice of OFFICE SPACE medicine with a specialty in cardiology. LLC upon whom process against it may be Management GP LLC, App. for Auth. filed served. Secy. of State shall mail process to: LUXURY Sec'y of State (SSNY) 8/1/06. Office Notice of Qualification of Right Wall Capital 327 Central Park West, Ste. 12C, NY, NY location: NY County. LLC org. in DE Offshore Management, LLC. Authority filed 10025, principal business address of the LLC. MIDTOWN COMMERCIAL 7/31/06. SSNY designated as agent of LLC REAL ESTATE with Secy. of State of N.Y. (SSNY) on Purpose: any lawful activity. upon whom process against it may be 11/22/06. Office location: NY County. LLC For All office & loft SPACES PROPERTIES served. SSNY shall mail copy of process to formed in Delaware (DE) on 11/17/06. SSNY Notice of Qualification of NOCHA A LLC. Attn: James A. Abate, 30 Wall St., 6th Fl., 500-50,000 SF designated as agent of LLC upon whom Authority filed with NY Dept. of State on NY, NY 10005. DE office addr.: CSC, 2711 UNDER MARKET SUBLETS-NO FEE! process against it may be served. SSNY shall 11/14/06. Office location: NY County. LLC Centerville Rd., Wilmington, DE 19808. Search our listings @ www.midcomre.com mail process to: 320 Park Avenue, 10th Fl., formed in Delaware (DE) on 11/9/06. Secy. of MIAMI BEACH/FLORIDA Cert. of Form. on file: SSDE, Townsend NY, NY 10022. DE address of LLC: Stellar State designated as agent of LLC upon whom Call Paul 212 947-5500 x 100 Bldg., Dover, DE 19901. Purpose: any Corporate Services LLC, 3500 S. Dupont process against it may be served. Secy. of lawful activities. TRUMP OCEANFRONT CONDOS Hwy., Dover, DE 19901. Cert. of Form. filed State shall mail process to: Michael Fischer, INVESTMENT/REAL ESTATE OWN YOUR LUXURY CONDO TODAY! with DE Secy. of State, 401 Federal St., Dover, c/o Sukenik, Segal & Graff, P.C., 404 5th Ave., TRUMP GRANDE & TRUMP TOWERS Notice of Qualification of NY-Bronx IV, LLC. DE 19901. Purpose: any lawful activity. 5th Fl., NY, NY 10018, principal business For pre-Sale--NNN lease--- Buy directly from the Developer & Save $$ Authority filed with Secy. of State of NY address of the LLC. DE address of LLC: c/o (SSNY) on 11/17/06. Office location: NY Notice of formation of Edge Wealth Chicago---A+ S&P---$9,200,000--- Furnished Condo Hotel units from $325k Corporation Service Co., 2711 Centerville Rd., 1-4 Bedrm Residential Condos from $875k County. LLC formed in Delaware (DE) on Management LLC. Arts. of Org. filed with the Wilmington, DE 19808. Arts. of Org. filed with 5.5% CAP---JRM Associates RE Ask for details on our FLY-BUY Program 10/31/06. SSNY designated as agent of LLC Secy. of State of NY (SSNY) on 10/20/2006. DE Secy. of State, Federal & Duke of York St., Adv., Ltd.---312-332-4187 Call Exclusively Baronoff 305.213.3606 upon whom process against it may be served. Office location: 675 Third Avenue, Ste. 2800, Dover, DE 19901. Purpose: any lawful activity. SSNY shall mail process to: 660 S. Figueroa NY, NY in NY County. SSNY is designated as agent of the LLC upon whom process against St, 24th Fl, Los Angeles, CA 90017. Address NOTICE OF FORMATION of theZombi LLC. it may be served. The person to whom SSNY required to be maintained in DE: 40 E. Division Arts. of Org. filed with Secy. of State of N.Y. shall mail a copy of any process, and the PUBLIC & LEGAL NOTICES St, Ste A, Dover, DE 19901. Arts. of Org. filed (SSNY) on 11/16/06. Office location: NY registered agent of the LLC upon whom with DE Secy. Of State, 401 Federal St., Ste 4., County. SSNY designated as agent of LLC process against the LLC may be served, is: Dover, DE 19901. Purpose: any lawful upon whom process against it may be served. Scott Ziegler, c/o Ziegler, Ziegler & Assoc., activities. SSNY shall mail process to: c/o theZombi, Notice of Formation of Integrated Builders 570 Lexington Ave., 44th Fl, NY, NY 10022. D6 MEDIA, LLC, Articles of Org. filed N.Y. Sec 374 West 46th Street Apt. 4W NY, NY 10036. LLC. Arts. of Org. filed with Secy. of State Purpose: any lawful activity. Of State (SSNY) 20th day of October, 2006. Discover New York LLC. Art of Org filed Purpose: any lawful activity. Office in New York Co. at 92 Perry Street, Ste of NY (SSNY) on 10/31/05, as amended. with NY Sec of State (SSNY) 6/10/04. 4, New York, NY 10014, SSNY desig. Agt. Office location: NY County. SSNY designated Notice of Formation Frank Productions, LLC Office in NY County. SSNY designated Notice of Formation of Robert D. Glatter, M.D., Upon whom process may be served. SSNY as agent of LLC upon whom process art. of org. filed SSNY 2/10/05. Off. loc. in NY LLC agent upon whom process may be PLLC. Arts. of Org. filed with NY Dept. of State shall mail copy of process to 92 Perry Street, against it may be served. SSNY shall mail Co. SSNY designated as agent of LLC upon served. SSNY shall mail copy of process to on 11/6/06. Office location: NY County. Secy. Ste 4, New York, NY 10014. Reg Agt. Upon process to: 5 W. 19th St., NY, NY 10011. whom process may be served. SSNY shall 60 E42nd St, #1415, New York, NY 10165. of State designated as agent of PLLC upon whom process may he served: Spiegal & Purpose: any lawful activity. mail copy of process to: 23 Leonard St, NY, Purpose: any lawful purpose. whom process against it may be served. Secy. Utera, P.A., P.C. 45 John Street, NYC 10038 NY 10013. Purpose: Any lawful purpose. of State shall mail process to the principal 1.800.576.1100 Purpose: Any Lawful Purpose. Urbecon LLC Articles of org. filed NY Sec. of State (SSNY)10/25/2006. Office in New 2095 MARC LLC Articles of Org. filed NY NOTICE OF QUALIFICATION OF business address of the PLLC: 17 W. 67th St., York Co. SSNY desig. agent of LLC upon Sec. of State (SSNY) 7/14/05. Office in New UNIRUSH, LLC. Application for Authority Apt. 1E, NY, NY 10023. Purpose: practice the Notice of formation of Limited Liability whom process may be served. SSNY York Co. SSNY desig. agent of LLC upon filed with the Secretary of State of New profession of medicine. Company (LLC) Big Apple Spots L.L.C. shall mail copy of process to 40 West 105th whom process may be served. SSNY shall York (SSNY) on 12/6/06. N.Y. Office Articles of Organization filed with the Secretary St., New York, New York 10025. Purpose: mail copy of process to 1220 Broadway - Location: NY County. LLC formed in Ohio Notice of Formation of ATJ CONSULTING, of State of New York (SSNY) on 11/02/2006. Any lawful purpose. Ste. 408, New York, N.Y. 10001. Purpose: on 3/6/02. SSNY has been designated as LLC, a domestic Limited Liability Company N.Y. Office location: New York County. SSNY Any lawful purpose. agent of LLC upon whom process against (LLC). Articles of Organization filed with has been designated as an agent upon whom Notice of Formation of FRANCE TAXI, LLC a it may be served. The address to which the Secretary of State on 10/13/2000. NY Office process against it may be served. The Post domestic Limited Liability Company (LLC), Notice of Formation of Stursberg and SSNY shall mail a copy of any process location: NEW YORK County. Secretary of Office address to which the SSNY shall mail a Articles of Organization filed with Secretary of Associates, LLC, a professional service limited against the LLC served upon him is C/O State is designated as agent upon whom copy of any process against the LLC served State on 07/10/2006. NY Office location: New liability company (PLLC). Arts. of Org. filed the LLC: 10625 Techwoods Circle, process against the LLC may be served. upon him/her is C/O the LLC: York County. Secretary of State is designated with NY Dept. of State on 8/24/06. Office Cincinnati, Ohio 45242, Attn: Gen. Counsel. Secretary of State shall mail a copy of any Big Apple Spots L.L.C. 648 E. 11th St Apt D1 as agent upon whom process against the LLC location: NY County. Secy. of State designated The Principal Business Address of the LLC process against the LLC served upon New York, New York 10009. The Principal may be served. Secretary of State shall mail a as agent of PLLC upon whom process against it is: 10625 Techwoods Circle, Cincinnati, him/her to C/O ANNA M. BOUTZALIS Business Address of the LLC is: 648 E. 11th copy of any process against the LLC served may be served. Secy. of State shall mail process Ohio 45242. Cert. of Org. filed with OH CPA, 265 POST AVE., STE. 130, St Apt D1, New York, New York 10009 upon him/her to C/O THE LLC, 313 10th to the principal business address of the PLLC: Secy. of State, 180 E. Broad Street, WESTBURY, NY 11590. DURATION Purpose/ character of LLC/LLP: Any Lawful Avenue, New York, NY 10001. Purpose: Any 405 Lexington Ave., Ste. 4949, NY, NY 10174. Columbus, OH 43215. Purpose of LLC: DATE: 10/10/2030. Purpose: To engage in Purpose Date of Dissolution: No Specific Date lawful activity. Purpose: the practice of law. all lawful purposes. any lawful act or activity.

16 | Crain’s New York Business | January 1, 2007 THE WEEKS AHEAD

THIS WEEK’S EVENTS Broadway Partners. 12:00 p.m. to 1:30 Insurance campaign 302. Fee: $95. (212) 442-2990 or JANUARY 2 p.m., 1 W. 54th St. Fee: $75. [email protected]. South Bronx Overall Economic (212) 716-3890 or JANUARY 11 Continued from Page 1 to approve permanent funding in Development Corp. holds business [email protected]. Advertising Club and Discovery with a large real estate purchase in 2007. seminar. 6:00 p.m. to 9:00 p.m., JANUARY 9 Networks hold advertising breakfast Manhattan—next to the actual pur- Mr. Dodd, a principal author of 555 Bergen Ave., third floor, Bronx. CUNY School of Professional Studies panel with Jonah Bloom, editor of chase price—is the cost of obtaining TRIA,said at a December press con- Free. (718) 293-7780 or holds seminar on immigration law. 6:00 Advertising Age. 8:00 a.m. to 10:00 a.m., terrorism insurance,” says Kevin ference:“I will not do another exten- [email protected]. p.m. to 9:00 p.m., 365 Fifth Ave., Segal Yale Club, 50 Vanderbilt Ave. Fee: $55 Madden, a managing director at sion. My goal here is to establish a JANUARY 3 Theater. Fee: $45 CUNY students and Ad Club members, $85 nonmembers. New York Designs and City University staff, $80 all others. (212) 817-7271 or (212) 533-8080 or Aon Risk Services. Coverage for a permanent piece of legislation.” of New York hold course on solving [email protected]. [email protected]. high-profile midtown building, for He will have help. Massachusetts entrepreneurial challenges. 6:00 p.m. to JANUARY 9 JANUARY 11 example, costs as much as $5 a Rep. Barney Frank, the incoming 9:00 p.m., 45-50 30th St., seventh floor, New York City Business Networking New York State Society of Certified square foot, he says. head of the Financial Services Com- Long Island City, Queens. Fee: $160. Group holds networking reception. 6:00 Public Accountants holds annual Insurers willingly provided ter- mittee, has expressed support for ex- (718) 663-8403 or p.m. to 8:00 p.m., Stone Creek, 140 E. conference on IRS taxation. 8:45 a.m. to rorism insurance before Sept.11.But tending TRIA for at least another [email protected]. 27th St. Free. (212) 471-8456 or 5:00 p.m., Long Island University’s they began to balk after the attacks. five years. His recent subcommittee JANUARY 4 [email protected]. Brooklyn campus, 1 University Plaza, At the same time, lenders began re- appointment of Ms. Maloney, a vo- New York Society of Security Analysts JANUARY 10 HS 107. Fee: $99 members, $115 holds forum on the market forecast. Magazine Publishers of America holds nonmembers. (212) 719-8300. quiring real estate firms in need of cal supporter of an extension,has fur- 11:30 a.m. to 2:00 p.m., 1177 Sixth Ave., forum on the fast-changing world of JANUARY 11 mortgage financing to carry terror- ther bolstered its chances. second floor. Fee: $100 members, $135 online content. 12:00 p.m. to 2:00 p.m., Women in Housing and Finance Inc. ism insurance.About 82% of compa- “The Democrats clearly under- nonmembers. (212) 541-4530, ext. 40. Coleman Center, 810 Seventh Ave., holds program on affordable home nies carry such coverage today,versus stand the urgency,” says Howard JANUARY 4 23rd floor. Fee: $125 members, $225 ownership. 6:00 p.m. to 8:00 p.m., just 50% in 2002, according to Aon. Mills, the outgoing superintendent Lehman College’s Small Business nonmembers. (212) 872-3767 or Washington Mutual Bank, 589 Fifth To meet rising demand for cov- of insurance for the New York State Development Center holds workshop [email protected]. Ave., third floor. Fee: $15 members, $20 erage, the federal government Department of Insurance. It is im- on starting a small business. 1:00 p.m. to JANUARY 10 nonmembers. (212) 439-1056 or passed the Terrorism Risk Insur- portant to renew TRIA immediate- 3:30 p.m., 250 Bedford Park Blvd. West, Pace University’s Small Business [email protected]. Old Gym Building, room 108-A, Bronx. Development Center holds workshop JANUARY 12 ance Act in 2002. The law requires ly,because insurers will begin renew- Free. (718) 960-8697 or on business planning. 5:30 p.m. to 7:30 iBreakfast-iEvents holds lecture with the insurance industry to pay a total ing their policies this month,he says. [email protected]. p.m., 163 William St., 15th floor. Free. Craig Newmark of Craigslist. 12:00 of up to $27.5 billion in terrorism “If a developer plans to start con- JANUARY 4, 18 Space is limited. (212) 618-6655 or p.m. to 2:00 p.m., NYU Stern School of claims; the government covers 85% struction on a new building in Janu- Action International holds information [email protected]. Business, Kaufman Building, 44 W. of terrorism-related losses above ary,it will take more than one year to sessions on building a stronger and more JANUARY 10 Fourth St. Fee: $50 members, $60 that amount, up to $100 billion. build,and without knowing if TRIA profitable business. 12:30 p.m. to 2:00 American Business Media holds nonmembers. (212) 624-9110 or Congress intended TRIA to be will be extended, it will be very diffi- p.m., Crema Restaurante, 111 W. 17th program on building brands through [email protected]. temporary and hoped that the indus- cult to get insurance for the length of St. Free. (646) 862-1710 or custom media. 8:30 a.m. to 10:30 a.m., try would come up with its own solu- the project,”Mr.Mills says.Without [email protected]. Scholastic International, 557 Broadway. JANUARY 15-21 JANUARY 7 Fee: $75 members, $95 nonmembers. JANUARY 19 tion.The two-year extension is set to coverage, it would be nearly impos- Networking for Professionals holds (212) 661-6360, ext. 3337, or Center for New York City Law holds expire on Dec.31,2007.Attempts to sible for a developer to get the loans networking lunch. 1:00 p.m. to 3:00 [email protected]. breakfast program with city Comptroller codify funding have been opposed by required to begin construction. p.m., Palm Too, 840 Second Ave. Fee: JANUARY 11 William C.Thompson Jr. on meeting conservative officials and activists, Leaders of the real estate com- $39.90 members, $49.90 nonmembers. Biba4Network and EnergyRichCoach the needs of New York City’s future. 8:15 who argue that the government munity are hoping that Washington (718) 625-1369 or hold seminar on reducing work time and a.m. to 9:30 a.m., New York Law School, should not subsidize the insurance follows the lead of the United King- [email protected]. doubling business revenue. 6:00 p.m. to 47 Worth St. Free. (212) 431-2115 or industry. The law does not regulate dom in devising a permanent fix. 8:30 p.m., MetLife, 260 Madison Ave., [email protected]. JANUARY 8-14 premiums for terrorism coverage. The British insurance industry has 10th floor. Fee: $10 members, $30 —adrianne pasquarelli As part of their push for perma- established a mechanism that lets JANUARY 8 nonmembers. (917) 573-9808 or Edward Abel & Associates holds [email protected]. nent federal help, a group of New insurers establish pools to create a program on boosting a business. 6:00 JANUARY 11 TO LIST YOUR EVENT York’s largest landlords gathered private backstop fund. p.m. to 8:15 p.m., 352 Seventh Ave., Association of Real Estate Women Crain’s lists business meetings online and includes last month at the midtown offices of “Fourteen nations have long- 16th floor. Free. (212) 564-7584 or holds networking reception. them in the print edition on a space-available basis. Vornado Realty Trust, where Chief term terrorism insurance programs www.edwardabel.com. 6:00 p.m. to 8:00 p.m., Friars Club, Events in New York City with admission fees of less Executive Steven Roth hosted a in place to make sure their JANUARY 9 57 E. 55th St. Fee: $100 members than $300 are considered for the print publication. fund-raiser for Connecticut Sen. economies can function in the face of Young Men’s/Women’s Real Estate and $135 nonmembers in advance, Listings can be submitted only through the Crain’s Christopher Dodd, the incoming an attack,” says Jeff DeBoer, presi- Association holds lunch program with additional $10 for all at door. Web site. To submit a calendar listing, go to chairman of Senate Banking Com- dent and chief executive of the John Yormak, chief operating officer of (212) 599-6181. www.newyorkbusiness.com and click on “Events.” JANUARY 11 Sponsors have a choice of several free or paid list- mittee. The audience was eager to Washington-based lobbying group hear Mr. Dodd’s plans for TRIA, Real Estate Roundtable. “There is More meetings online at Industrial Technology and Assistance ing options. All business events will be posted Corp., New York City, holds workshop online within two business days. and he did not disappoint. Accord- no reason the U.S.can’t do the same.” www.newyorkbusiness.com ing to attendees, he told the group Click on “Events” on lean manufacturing techniques. 9:00 Crain’s can neither confirm receipt of listings nor say a.m. to 4:30 p.m., 253 Broadway, suite if or when event listings will appear in the print edition. that he believes Congress is likely COMMENTS? [email protected]

PUBLIC & LEGAL NOTICES

Notice of Qualification of 795 Columbus LLC. Notice of Formation of 350 EAST 19TH ST. NOTICE OF FORMATION OF LIMITED Notice of Qualification of Unleash NOTICE OF QUALIFICATION OF Authority filed with NY Dept. of State on LLC, a domestic Limited Liability Company. LIABILITY COMPANY. NAME: T&T ASSOC., Marketing, LLC, App. for Auth. filed Sec'y Caccappolo Family, LLC 11/27/06. Office location: NY County. LLC Articles of Organization filed with the Secretary LLC. Application for Authority was filed with of State (SSNY) 10/12/06. Office location: Authority filed with the Secretary of State formed in Delaware (DE) on 11/22/06. Secy. of of State of New York (“SSNY”) on 11/30/06 the Secretary of State of New York (SSNY) NY County. LLC org. in DE 10/6/06. SSNY of New York (SSNY) on 08/31/06. Office State designated as agent of LLC upon whom NY location: New York County. SSNY is on 12/06/04. The LLC was originally filed designated as agent of LLC upon whom Location: New York County. LLC formed in process against it may be served. Secy. of designated agency upon whom process with the Secretary of State of Florida on process against it may be served. SSNY Delaware on 07/27/06 SSNY has been State shall mail process to: c/o The Chetrit against the LLC may be served. SSNY shall 11/02/2004. Office location: New York shall mail copy of process to 126 designated as agent of LLC upon whom Group, 404 5th Ave., 4th Fl., NY, NY 10018, mail a copy of any process against the LLC County. SSNY has been designated as MacDougal St., Ste. 2D, NY, NY 10012. DE process against it may be served. Address principal business address of the LLC. DE served upon him/her to the LLC, c/o Turman agent of the LLC upon whom process office addr.: Inc. Services Ltd., 3500 to which SSNY shall mail process against address of LLC: c/o Corporation Service Co., & Eimer LLP, 1980 Broadcast Plaza, Merrick, against it may be served. SSNY shall mail S. Dupont Hwy., Dover, DE 19901. Cert. of the LLC is C/O the LLC: Corporation 2711 Centerville Rd., Wilmington, DE 19808. NY 11566. Purpose: To engage in any a copy of process to the LLC, c/o Mass Form. on file: SSDE, Townsend Bldg., Service Co., 2711 Centerville Rd., Ste. 400, Arts. of Org. filed with DE Secy. of State, lawful act or activity. Marketing, 5-31 51st Avenue. Long Island Dover, DE 19901. Purpose: any lawful Wilmington, DE 19808. Principal Business Federal & Duke of York St., Dover, DE 19901. City, New York 100001. Purpose: For any activities. Address of LLC 65 W 13th St, 5B, N.Y., Purpose: any lawful activity. WAGRAM INTERNATIONAL LLC, lawful purpose. N.Y., 10011. Purpose of LLC: any Articles of Org. filed N.Y. Sec. of State Notice of Formation of SIBERIA TAXI, LLC a lawful activity. Notice of Formation of Far West Village (SSNY) 12th day of October, 2006. Office in Notice of formation of Chadwick Bell LLC, a domestic Limited Liability Company (LLC), Partners, LLC. Arts. of Org. filed with NY Dept. New York Co. at 400 West 37th St, Ste 12A, domestic Limited Liability Company. Arts. Of Articles of Organization filed with Secretary of of State on 12/11/06. Office location: NY New York, NY 10018. SSNY design. Agt. Org. filed with the SSNY on 11/22/06. Office State on 07/07/2006. NY Office location: New To place your classified County. Principal business address: 11 W. 10th Upon whom process may be served. SSNY location: New York County. SSNY is designated York County. Secretary of State is designated St., NY, NY 10011. Secy. of State designated as shall mail copy of process to 400 West as agent upon whom process against the LLC as agent upon whom process against the LLC agent of LLC upon whom process against it 37th, Ste 12A,New York, NY 10018. reg. may be served. SSNY shall mail a copy of may be served. Secretary of State shall mail a ad call John Gallagher may be served. Secy. of State shall mail Agt. upon whom process may be served: process to: the LLC, 648 Broadway, Ste. 601, copy of any process against the LLC served process to: Stuart Berg, Kurzman Eisenberg Spiegel & Utrera,P.A.,P.C. 45 John Street, New York, NY 10012.Purpose: Any Lawful upon him/her to C/O THE LLC, 313 10th Corbin & Lever, LLP, 1 N. Broadway, White NYC 10038 1 800 576-1100 Purpose: Any Purpose. Latest date upon which LLC is to Avenue, New York, NY 10001. Purpose: Any @ 212-210-0189 Plains, NY 10601. Purpose: any lawful activity. lawful purpose. dissolve: No specific date. lawful activity.

January 1, 2007 | Crain’s New York Business | 17 Market rally lifts NY companies LOSERS Falling Behind Continued from Page 1 Volt Information G-III Apparel +108% Monthly closing stock prices. ket will rise for the fifth consecutive year for only the fourth time ever, Sciences +170% g-iii apparel group inc., the only and estimates that the S&P 500 will a revitalized job market has company that returned to the Crain’s gain 7% as inflationary pressures meant boom times for Volt Infor- annual winners list, posted an even ease and the Fed cuts interest rates. mation Sciences Inc.,which special- better performance in 2006 than it Of course, that would amount to izes in placing temporary and full- did in 2005, when its stock price only half of the S&P’s 2006 increase, time employees ranging from nearly doubled. but with Mr. McVey projecting a entry-level welders to assistant con- The 32-year-old company has slowdown in corporate earnings trollers. grown via acquisitions in the past growth to 5.5%, investors will sure- The 56-year-old company, few years and now makes clothing ly take it. which is still 43% owned by its under license for such brands as As always, a handful of compa- founding family, just finished what Guess?,Calvin Klein and Sean Jean. nies vastly outperformed the market appears to have been its best year It also makes private-label apparel averages last year, while some stum- ever.Through the nine months end- for Target, Macy’s, Wal-Mart and bled badly. ed July 30, it posted net income of other retailers. Following are profiles of the five $17 million on revenue of $1.7 bil- The goal now is to extend its ex- New York area companies whose lion,or double its net of $8.7 million pertise from making coats and jack- stocks fared the best, and the five on revenue of $1.6 billion in the ets into sportswear and women’s whose shares sank the most. year-earlier period. suits and dresses.

The issue facing Volt and all tabones gerard staffing companies is whether the WINNERS job market will remain robust in the Knight Capital +96% coming year. The 2002 economic Revlon -58% Sirius Satellite downturn hit Volt hard,causing rev- knight capital group inc. has enues to sink by nearly 25%. benefited greatly from the investor the story just gets uglier at Radio -47% frenzy for all things trading-related. Revlon Inc.The debt-ridden, mon- no doubt Howard Stern com- Such activity lifted shares of the ey-losing cosmetics company took mands a large audience,and certain- NBTY +158% New York Stock Exchange to near- another pasting this year when its ly Mel Karmazin is a savvy chief ex- ly triple digits. newest product line,Vital Radiance, ecutive.Trouble is,Mr.Stern doesn’t investors have binged on and Jersey City-based Knight, which flopped. seem to have enough listeners to Amrep +378% then purged NBTY Inc.’s stock over almost collapsed during the bear At this point, the help turn around chronic money- amrep corp. is an odd duck of a the past couple of years,as the nutri- market of 2000-02, now finds itself iconic brand’s best loser Sirius Satellite Radio Inc., and company. It develops real estate in tion supplement maker and retailer in one of Wall Street’s sweetest chance for a turnaround if Mr. Karmazin can’t find the right New Mexico while distributing fought to keep on top of the latest spots. It specializes in ultra-fast may lie with lead share- formula soon, satellite radio may magazines to newsstands and sell- fads. Last year, the Bohemia, L.I.- electronic trading and competes holder Ronald Perel- join eight-track tapes in history’s ing subscription-fulfillment servic- based company got the formula with the NYSE for orders. With man, who could cobble dustbin. es to publishers. right, thanks in part to such things regulators nudging mutual funds to together an investor Sirius has been one of the mar- That formula worked wonders in as a well-publicized study suggest- figure out just how well their orders group and take the ket’s biggest disappointments in the a year when real estate and media ing that vitamin D can halve the risk are being handled, Knight is poised company private. Then past year. Along with rival XM were two of the shakiest businesses of getting pancreatic cancer. to score as more investors look for again, Revlon already Satellite Radio, it has struggled to around. The reason: Princeton, NBTY markets about 22,000 places that offer the best prices on carries over $1.4 billion persuade consumers to pay for radio N.J.-based Amrep was selling land products under such brand names as stocks and the fastest trading. of long-term debt on its programming. Sirius has about 6 outside Albuquerque to residential Nature’s Bounty,Sundown and Sol- Thanks to its enviable niche, books, so it’s unclear million subscribers, but analysts and commercial developers,and de- gar and owns the Vitamin World Knight makes an attractive takeover just how much more predict it will continue to bleed red mand remained strong. Revenue in chain of stores, among others. It re- target and is likely to be acquired. leverage the company ink until at least 2010.Over the past its real estate unit nearly doubled to ported net income of $112 million can handle. five years, the company has tallied $114 million through the six in 2006 on $1.9 billion of revenue, In the meantime, Revlon is try- up a frightful $3.4 billion in net loss- months ended Oct. 31, while gross compared with $78 million of in- LOSERS ing to resuscitate itself with a re- es on just $800 million of revenue. margins on land sales soared to 70% come on $1.6 billion of revenue the launch of its Almay line of eye shad- Can Sirius survive? The compa- from 47%. prior year. National ow, mascara and foundation aimed ny dearly hopes listeners will stay The big question heading into The challenge facing the compa- at busy women. tuned. In the meantime, Sirius’ best 2007 is just how much of an ap- ny is whether to make a bid for Medical -58% option may be to merge with XM. petite remains for Amrep’s real es- GNC, which recently said it would pharmacy benefits manager tate. The firm can’t afford many explore a sale. The acquisition of National Medical Health Card Sys- Westwood One -56% missteps; revenues from its media GNC, which has about 5,000 retail tems Inc. has been in a tailspin ever New York & Co. -37% subsidiary declined 2% during the outlets, would nearly double since May, when it lost its biggest the past few years have been six months ended Oct. 31, to about NBTY’s revenues but would clearly client, Mohawk Valley Physicians’ bleak for traditional radio outlets, this midpriced retailer has $44 million. mean swallowing a massive pill. Health Plan. Analysts say Mohawk especially Westwood One Inc. struggled since going public four generated 18% of NMHCS’ rev- Sales at this provider of news, years ago. Its stock is about 25% be- enue in 2005. The company has sports, and entertainment radio low where it debuted. It was a big since shaken up management, but programming dropped 11% loser last year in part because it re- WINNERS sales have continued to lag and fi- through the first nine months of the ported a 4.4% drop in comparable- nancial problems are looming. year, with no end in sight. Net in- store sales through the first nine Making Gains The Port Washington, L.I., come fell by a sickening two-thirds, months.That’s a sharp decline from Monthly closing stock prices. company is conducting an internal to $19 million, and the company the 0.5% increase it posted over the investigation of its rebate program, slashed its quarterly dividend by same period in 2005. under which it gets paid by pharma- 80%. While rivals such as The Limit- ceutical manufacturers to sell drugs No wonder Westwood’s board ed and Express are also struggling to to plan participants. In addition, it has named a “strategic review com- compete for the same audience— has not yet filed its fiscal first-quar- mittee.” price-conscious female shoppers ter report with the Securities and That ordinarily means a compa- between the ages of 25 and 45—an- Exchange Commission, and ana- ny is for sale, but Westwood said alysts say that New York & Co. has lysts expect earnings will fall by the panel’s task is to “modify and made some of its own bad luck by nearly half in 2007. extend” agreements with its largest stocking it shelves with dated fash- A turnaround will be tough, but shareholder, CBS Radio. The ions. The company sells its own at least the company’s lenders,led by endgame is not clear. CBS, which brand of clothes. J.P. Morgan Chase, agreed to con- owns about a 20% stake, could buy Management got the message tinue offering access to a $20 million the rest of Westwood One. But and shook up design and merchan- credit line through Feb. 27. As of analysts say that it’s just as likely dising units earlier this year. early December, NMHC hadn’t that CBS will walk away from the tapped those funds. company. COMMENTS? [email protected]

How will the markets perform in 2007? Vote in the Crain’s online poll @ www.newyorkbusiness.com gerard tabones gerard

18 | Crain’s New York Business | January 1, 2007 Coffee battle brews in Manhattan

Continued from Page 1 However, the company did start of- fering holiday drinks just like Star- RUBBISH bucks’. Dunkin’ Donuts shops began REMOVAL multiplying in New York a couple of years ago, as the company made the city a priority in its growth strategy. Today, Manhattan has 90 stores, up from about 30 four years ago. The company aims to open at least 100 Free Estimates more stores within the next few 24 HourService years. Basements - Attics - Yards - Demolition Residential Contractors Franchisees drive growth Commercial Accounts Welcome individual franchisees are driv- www.gregsexpress.com ing the growth.As one of the largest franchisees, Mr. Menexas and his Greg’s express three partners plan to open six or Save the Planet. Recycle. seven stores annually for the next 10 years. They currently operate 11 CHEERS! Dunkin’ Donuts franchisees (from left) Steve Menexas, George Menexas, Vasilios 1-866-MR-RUBBISH stores in their territory on the East Potamousis and George Kiriazis want to attract more customers without alienating devotees.

Side of Manhattan, between Hous- arnie adler ton and 57th streets. Their 12th store, slated to open at 243 Third “A landlord would choose a Star- New York City store in 1994 and to- self and a buddy while working in Ave. early this month, will feature bucks over a Dunkin’ Donuts any- day operates nearly 200 locations in Brooklyn Heights last week. “It’s the new look. time,” says Ariel Schuster, a broker Manhattan. not quite as expensive, and the cof- Mr.Menexas says all of his shops at Robert K. Futterman & Associ- fee is comparable.” are profitable, but his top performer ates, which has made deals for both True blue to Starbucks As Dunkin’ Donuts continues by far is in the Citigroup Center at Dunkin’ Donuts and Starbucks. now that starbucks is firmly en- filling the holes between Starbucks 153 E.53rd St.Despite having three “The landlord can sleep for the next trenched in New York’s daily life, locations in Manhattan,the Canton, Starbucks stores close by,it gets tons 10 years, knowing that the lease is some blue-collar workers have be- Mass.-based company is trying to of traffic from office workers and the guaranteed.” Banks are another come loyal to the brand. “It’s clean, spiff up its image across the country. nearby subway entrance. Fran- worthy rival in the real estate wars. and the service is excellent,” says A new advertising campaign,“Amer- Office & Retail chisees like Mr. Menexas are seek- Starbucks representatives did Lou Kaziu, a construction worker ica Runs on Dunkin’,” and a recent Availabilities: ing other promising locations. not return calls for comment,but in- who visits Starbucks at least three partnership with the cheap and But most midtown landlords, like dustry sources say the company is times a day to get his quadruple- trendy JetBlue have helped raise the 212.594.2700 many of the workers in their office planning to roll out more Manhat- shot espresso fix. company’s profile. “They are going towers,prefer Starbuck’s tall soy lattes tan stores in response to Dunkin’ Others are die-hard Dunkin’ for convenience and accessibility,” slgreen.com to Dunkin’ Donuts’ box of joe. The Donuts’ barrage. It also started of- fans. “If there’s a Starbucks and a says Clark Wolf, a restaurant indus- Seattle-based company provides fering breakfast sandwiches to com- Dunkin’ Donuts right next to each try consultant based in Manhattan. Reaching New Heights. much stronger credit than the indi- pete with Dunkin’Donuts’morning other, I’ll go to Dunkin’,” says Joe viduals who operate Dunkin’Donuts. meals. Starbucks opened its first Pollini, who bought coffee for him- COMMENTS? [email protected]

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January 1, 2007 | Crain’s New York Business | 19 Everything you think is true about air travel isn’t.

2-3 hour check-in? 30 minute check-in.

A trek through a crowded terminal? A private air terminal in London.

Compete with 300+ passengers? Travel with only 100 others.

Wasted time in the departure lounge? Go straight on board.

Sit where you’re told? Choose where to sit in advance.

Cramped, uncomfortable seating? Award-winning flat bed.

Eat what you’re given? Pre-order what you eat.

Entertainment the crew switch on and off? An entertainment center you control.

A flood-lit cabin? Individual in-seat lighting only.

Constant announcements? Minimal announcements.

Sleep when you’re told? The longest possible time to sleep.

Cart and other cabin noise? No carts and a quiet cabin.

Demoralized, inattentive crew? Enthusiastic, dedicated crew.

London, business class – around $3,500 one way? London, Silver Class from $899 one way.*

*Based on round trip purchase, excluding taxes and charges. fly .com