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Pandora Unleashes Its Sales Force on Local Radio Advertising Market 20140421-NEWS--0001-NAT-CCI-CN_-- 4/18/2014 6:28 PM Page 1 SCOOP GUV’S NO. 2 wants out of Albany, in on NY real estate CRAIN’S® NEW YORK BUSINESS P. 9 VOL. XXX, NO. 16 WWW.CRAINSNEWYORK.COM APRIL 21-27, 2014 PRICE: $3.00 Con Ed’s greenout As the economy heats up, utility looks for new ways to keep the juice flowing BY AARON ELSTEIN Consolidated Edison Inc. emitted 3.4 million metric tons of carbon dioxide and other greenhouse gases last year. Just about everyone agrees this isn’t sustainable. Even Con Ed’s new chief executive, INSIDE: John McAvoy. GREEN REPORT To demonstrate his utility’s com- A $1B STATE mitment to cleaner energy, one of Mr. FUND AIMS TO McAvoy’s first acts as CEO was over- STOKE PRIVATE seeing the installation of 200 solar INVESTMENT IN CLEAN ENERGY panels on the roof of the 100-year-old PAGE 15 building that is Con Ed’s headquar- ters near Union Square. The $270,000 project—about half of which was paid for with a federal government grant—will lower the utility’s own electric bill by $7,000 a year. “I’m excited about this; this is the right thing to do,” RAISING THE ROOF: said Mr. McAvoy, who replaced Kevin Burke as Con Con Ed CEO John McAvoy said its solar Ed’s chief at the end of last year.“This takes us forward panels are just the start to the next decades of energy technology.” of its effort to make the Con Ed’s panels produce a tiny amount of power— city’s electrical grid more sustainable. about 40 kilowatts, or enough to light up two floors in See CON ED on Page 40 buck ennis Pandora unleashes its sales force WANT BON JOVI AT YOUR B’DAY on local radio advertising market PARTY? Rachel McIntyre off the billions of advertising dollars ployees, many of them radio-sales Streaming service that flow to AM/FM radio. refugees from Clear Channel and can make it (or staffs up as AM/FM And it’s gunning for more. Once CBS Radio.That’s up from 95 a year most anything focused on just national advertising, ago, and could grow to 350 by next stations defend turf Oakland, Calif.-based year.Their target: terrestrial else) happen, for a Pandora has sales teams in radio’s $17 billion in annual hefty fee P. 41 BY MATTHEW FLAMM 35 markets—including EXPECTED270% ad revenue—in particular top performers Los Ange- GROWTH IN SIZE the $14 billion that comes Pandora doesn’t have the social- les, Chicago and Dallas— of Pandora’s New from local advertisers. media cool of Spotify,the elegant in- and reportedly has plans to York City staff “Half of the salespeople between last year terface of iTunes Radio or the giant enter four or five more. and next year here are laser-focused on music catalogs of iHeartRadio and Ground zero for its ad broadcast radio,” said John Rdio.But Pandora Media Inc.stands efforts is New York, home to the Trimble,Pandora’s New York-based out in the crowded streaming-music company’s largest sales force. A new chief revenue officer. field in an important way: It’s been two-floor, 50,000-square-foot office A lot is riding on their success. It better than anyone else at siphoning in midtown holds nearly 200 em- See PANDORA on Page 40 NEWSPAPER 20140421-NEWS--0002-NAT-CCI-CN_-- 4/18/2014 6:30 PM Page 1 EDITOR’S NOTE Bump thump FYICRAINSNEWYORK.COM Our far-and-away most popular story on CrainsNewYork.com last Port Authority week was not the news of Chelsea Clinton’s pregnancy but the drives toward revelation of another baby bump: on-ramp to reform New York’s projected move up the ranking of state business-tax fter a long, cold winter, climates, to No. 48 from No. 50, a thaw appears to stephen o’byrne Glenn Coleman that’s published each year by the Afinally be afoot at the Port Authority of New York and New Jersey. Some of the Washington, D.C.-based Tax embattled bistate agency’s most formidable watchdogs were invited to the authority’s Foundation.“New York no longer worst state to do Manhattan headquarters on Monday to air their criticisms during a first-of-its-kind public business” our main headline stated, followed by a discussion. Port Authority Vice Chairman Scott Rechler pledged that the session will be the second, more explanatory headline that read: “That first of many. ¶ Another lively debate is expected at the authority’s monthly board meeting honor now goes to New Jersey.Tax reforms passed in two days later. High on the agenda for that gathering will be a vote by the board of the latest budget represent big improvements for commissioners on a proposed $1.2 billion financial guarantee from the Port Authority to corporations, but not so much for individuals.”That permit developer Larry Silverstein to construct a 2.8 million-square-foot office tower at 3 bump is big news, baby, for New York business, as our World Trade Center. Such weighty decisions typically have been made behind closed doors, online traffic confirmed. Reforms in the $140 billion only to be rubber-stamped in public. This time around, the conversation among board state budget hashed out by Gov. Andrew Cuomo and members has been the most open in memory, with several officials publicly opposing each legislative leaders have simplified New York’s tax code other. ¶ Though the tower-financing deal is expected to pass, the whole episode could be a and, according to the Tax Foundation, have made the harbinger of a new transparency, and even openness to outside opinions, at the Port Authority, Empire State a better place to do business if you are a which has come under intense scrutiny since Bridgegate. Next on the agenda, efforts to corporation.The changes include reductions in the depoliticize decisions and cut the number of political patronage jobs. —daniel geiger different tax bases used to calculate corporate taxes and a cut in the corporate net income-tax rate, to 6.5% BANKS BEAT EXPECTATIONS. Most of has pledged $50 million toward from 7.1%, the lowest level since 1968. As our story New York’s biggest banks escaped rel- building a grassroots anti-gun net- HOORAY! reported: “Had the reforms been in effect when the atively unscathed in the first quarter. work—his first major political invest- GOOGLE, Morgan Stanley and Citigroup both ment since leaving office. He plans to MICROSOFT and [Tax Foundation] ranking came out last July, the saw first-quarter net income rise 18% rapper Nas use some of the NRA’s lobbying launched a state’s rating for its corporate-tax structure would have and 3.5%, respectively. Even Gold- strategies to make the political envi- $170,000 been No. 4 in the nation, a huge change from No. 25. man Sachs, which reported a net loss ronment more supportive of gun General Assembly of 10%, beat analysts’ expectations as control. … BRATTON’S COUNTER- technology Taken with other reforms, like changes to the estate scholarship fund investment-banking revenue reached TERRORISM ROLLBACKS. Police geared toward tax, the state’s overall tax climate improved by two its highest level since the financial cri- Commissioner Bill Bratton has dis- minorities, sis. … ‘INSIDER TRADING 2.0’ CRACK- banded the NYPD unit that spied on women and spots, to 48th in the nation from dead last, veterans. leapfrogging New Jersey and California.” Leapfrog, DOWN CONTINUES. State Attorney Muslim communities. The move is General Eric Schneiderman’s office seen as Mr. Bratton’s first step in ax- indeed.There’s a short, pudgy guy in my gym, sent subpoenas to more than six high- ing some of his predecessor’s post- OY VEY! probably a former wrestler, whose usual exercise frequency-trading firms, including 9/11 intelligence-gathering and THIS SUMMER routine includes an impressive series of clean leaps New York-based Tower Research counterterrorism efforts. … SEAM- will be from the gym floor to the top of a 36-inch box, like Capital, as part of an investigation LESS STITCHES NEW FEE STRUCTURE. “oppressively into whether they Seamless will no hot,” predicts NFL athletes do in training.That’s what New York the Farmer’s have an unfair advan- ‘Nice try longer include gratu- Almanac. did last week, baby.That’s what New York did. tage over others. … ities in the percentage HIZZONER AND GUV @nytimes’ fees it charges restau- PAY. Mayor Bill —@GoldmanSachs tweet rants as part of a THIS WEEK IN CRAIN’S de Blasio, along after The New York Times $276,000 settlement with wife Chirlane incorrectly referred to with the state attor- ap images McCray, earned Lloyd Blankfein as the ney general’s office. IN THE BOROUGHS-------------------------- 4 $165,047 in 2013, in- bank’s “former” CEO in an The food-delivery with her first child, she announced IN THE MARKETS----------------------------------6 cluding $52,200 in article website collects a per- last week at a Clinton Foundation rental income from a centage of the total forum. … R.I.P., BASIL PATERSON. THE INSIDER -----------------------------------------------8 property he owns in Park Slope, bill,which included tips,from each of The legendary New York politician REAL ESTATE DEALS PLUS----9 Brooklyn, tax filings show. His effec- its partner restaurants. The practice and father of former Gov. David Pa- BUSINESS PEOPLE-----------------------10 tive tax rate was 8.3%—significantly encouraged restaurants to not pay terson died last week.
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