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SMOKE SIGNALS the Governor’S Budget Calls for Legalizing Recreational Marijuana

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SMOKE SIGNALS the Governor’S Budget Calls for Legalizing Recreational Marijuana CRAINSNEW YORK BUSINESS NEW YORK BUSINESS® JANUARY 28 - FEBRUARY 3, 2019 | PRICE $3.00 SMOKE SIGNALS The governor’s budget calls for legalizing recreational marijuana. But how would the market work? And who would benefit? PAGE 19 E-BIKE INANITY P. 3 CRACKING DOWN ON WAGE THEFT P. 4 THE LIST Top executive recruiters P. 11 VOL. XXXV, NO. 4 WWW.CRAINSNEWYORK.COM CUSTOM CONTENT 2019 TAX GUIDE P. 13 NEWSPAPER P001_CN_20190128.indd 1 1/25/19 6:26 PM JANUARY 28 - FEBRUARY 3, 2019 CRAINSNEW YORK BUSINESS ON THE COVER PHOTO: BUCK ENNIS FROM THE NEWSROOM | BRENDAN O’CONNOR | MANAGING EDITOR Out of the weeds NOT SO LONG AGO intrepid New Yorkers could witness an intricate ritual play out most nights in Washington Square Park. A young man would approach a slightly older man, who would give him a subtle nod. e younger man would put some money on the ground— likely $10—and the older man would take a tiny pouch of pot out of his pocket and put it on the ground next to the 10-spot. e young man would pick up the “dime bag,” the older guy would take the cash, and, because the transaction was technically indirect, the police would more o en than not look the other way. Or maybe they were just too amused to care. ings have changed quite a bit in the past 20 years or so. As cell- phones proliferated, the corner dealer was replaced by a bike- riding courier o ering delivery of lot more varieties of weed with much less ritual. Few people call it pot anymore, as “ ower” is the preferred term, and dime bags have given way to gummies, vapes, tinctures and P. 19 a wide range of cutting-edge THC-delivery devices. But the biggest change is yet to come. is month Gov. Andrew IN THIS ISSUE Cuomo unveiled his budget proposal, including plans for the legaliza- tion of cannabis for recreational use. If the bill passes the state Legisla- UP FRONT 8 ASKED & ANSWERED ture this spring, as is anticipated, New York will become the 11th state Nurturing three ower shops in a shrinking retail landscape to permit, regulate and, of course, tax the cultivation and distribution 3 EDITORIAL Government is a necessary 9 IN THE MARKETS of marijuana. (Medical use has been legal here since 2014.) evil, but must it be idiotic? A community bank links Crain’s has covered this business, illicit and otherwise, for several 4 IN CASE YOU MISSED IT its fortunes to health care; years now, and this week’s cover story (“Wading Into Weed,” p. 19) is Stiff punishment for companies capitalizing on the shutdown likely to be the rst of several to explore the wide-ranging social and that shortchange workers 10 VIEWPOINTS economic impacts of this soon-to-be multibillion-dollar enterprise. 5 ENTERTAINMENT A changed mind on Bloomberg And while it’s true that times have changed, there is a bit of histori- Nightlife industry contributes for president; make New York’s cal symmetry baked in: George Washington, the park’s namesake, was $700 million to tax revenue trucks electric a lifelong hemp farmer. 6 WHO OWNS THE BLOCK 11 THE LIST Two towers tell the tale of The area’s largest executive- Midtown old and new recruiting rms 7 REAL ESTATE City unveils overhaul to stop FEATURES CONFERENCE CALLOUT wasteful projects; construction FEB. 21 dipped in the city last year 19 WADING INTO WEED CRAIN’S BUSINESS How a legal-marijuana market BREAKFAST FORUM would work in the state and who would bene t ASSEMBLY SPEAKER Carl Heastie will 25 FOR THE RECORD discuss the state budget, pressing Our tally of the week’s buys, topics facing lawmakers and his busts and breakthroughs long-term goals for the Legislature. Register today: CrainsNewYork.com/ 26 SNAPS Photos from the city’s biggest Heastie events/Heastie2019. fundraisers and charity events NEW YORK 27 GOTHAM GIGS ATHLETIC CLUB A former aerospace engineer 8 to 9:30 a.m. helps steer his family’s [email protected] P. 27 reggae dynasty Vol. XXXV, No. 4, Jan. 28, 2019—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues Jan. 1, June 25, July 9, July 23, Aug. 6, Aug. 20 and Dec. 24, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2019 GETTY IMAGES, BUCK ENNIS by Crain Communications Inc. All rights reserved. 2 | CRAIN’S NEW YORK BUSINESS | JANUARY 28, 2019 P002_CN_20190128.indd 2 1/25/19 7:06 PM JANUARY 28, 2019 AGENDAGovernment is a necessary evil, but must it be idiotic? illions of times a day, New Yorkers break the law in plain sight, and the police let them. Good thing too, because allowing jaywalking is smart. Imagine how much time would be wasted if we all stood at the curb like tourists— Mmasses of humanity backing up behind us—rather than cross on the red during a break in tra c? A crackdown on illegal crossing would slow the city economy by making walking less e cient, worsen congestion by en- ticing ride-hailing and increase crime by occupying police. QUITE THE CATCH: ere’s a reason we don’t enforce all laws all the time. But too o en this The NYPD was roundly mocked simple logic escapes our government. for tweeting this Exhibit one: For two years overzealous inspectors from the Depart- photo of con s- cated e-bikes. ment of Buildings blitzed poor and working-class neighborhoods to crack down on illegal signage. Obscure violations such as missing permits for signs larger than 6 feet were deemed so perilous to the public that ciently spiriting food to the millions of New Yorkers who order in, but the struggling merchants were slapped with $6,000 nes. e shop owners state has yet to create a license for them, so the city considers them illegal. were outraged, of course, but also perplexed at being written up for pic- For several years the NYPD has been con scating these clever devices ayune infractions that hadn’t ever bothered anyone. e city’s action— and handing out he y nes, costing their immigrant riders a week’s wages bad enough by itself—has led to con art- with every bust. (By law, the restaurants are ists shaking down innocent entrepreneurs Every business has a shake-your-head supposed to pay, but in the real world, the worried about their signs. e City Council hapless worker does.) Mayor Bill de Blasio, nally stopped the madness this month, story about city bureaucracy, archaic who says he wants New York to be Ameri- passing a two-year moratorium on awning rules and overzealous inspectors ca’s fairest city, blesses this heartless policy, enforcement. saying he is worried about e-bikes hurting Every small business in this town has a people—which is exceedingly rare. Does he shake-your-head story about city government: dysfunctional bureaucra- not realize that the alternative—delivering by car—is far more dangerous? cies, clerks on power trips, cops with quotas, archaic rules misapplied to e mayor’s only response has been to legalize the few bikes with motors new technology. Owners of nonconforming signs eventually got a reprieve, that kick in only when the rider pedals. So nice of him. but there has been little relief for delivery people, nearly all of whom use Perhaps we should take advantage of the moratorium for illicit signs and bikes with silent, zero-emission electric motors. E-bikes are ideal for e - install one at City Hall: “Help Wanted: Common Sense.” — THE EDITORS FINE PRINT With temperatures dipping below freezing recently, a familiar residential address produced the most heating complaints to 311. According to RentHop, 89-21 Elmhurst Ave. in Queens generated 1,078 com- plaints this winter, more than double the total at any other address. The Central Queens Properties–owned building had 1,298 complaints last year, which was also far more than any other building. BY GERALD SCHIFMAN STATS 25 WORDS OR LESS UNSIGHTLY SUITS TOP WEB-ACCESSIBILITY A CLASS-ACTION LAWSUIT led this month LAWSUIT TARGETS, 2018 alleges Beyoncé’s website is inacces- AND THE CITY sible to the blind, in violation of Retail the Americans with Disabilities Tall buildings are a Act. Courts—mostly 38% in New York—saw a “ Food service reality. The days of spike in such cases last year. 11% restrictions on buildings ADA web- Travel/hospitality accessibility cases 10% are really over” 2,285 led last year, nearly —Real estate developer Harry Macklowe, three times the 2017 total Banking/ nancial who is seeking approval to build a % Portion of ADA web- 7% 1,551-foot-tall tower on Fifth Avenue accessibility lawsuits led Entertainment and leisure 64 in New York last year between 51st and 52nd streets. Tower 7% Fifth would be the second-tallest building Portion of sued in the Western Hemisphere. % companies based 25 in the state SOURCE: UsableNet GETTY IMAGES, COURTESY OF NYPD10PCT/TWITTER JANUARY 28, 2019 | CRAIN’S NEW YORK BUSINESS | 3 P003_CN_20190128.indd 3 1/25/19 6:43 PM IN CASE YOU MISSED IT CRAINSNEW YORK BUSINESS president K.C.
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