20111010-NEWS--0001-NAT-CCI-CN_-- 10/7/2011 9:02 PM Page 1 INSIDE REPORT EDUCATION TOP STORIES Meet the brains Cultural revolution: steering the billions to There’s a new No.1 be spent on college expansions institution in town ® STORY, PAGE 3; LIST, PAGE 23 PAGE 17 VOL. XXVII, NO. 41 WWW.CRAINSNEWYORK.COM OCTOBER 10-16, 2011 PRICE: $3.00 Tech campus bids shake up race New plans from Carnegie Mellon, NYU, and Palo Alto. opment Corp. “We’re expecting to Yo, Manhattan, The charge by the local schools get a very robust set of responses.” Columbia give city chance to award 2nd site and Carnegie Mellon, which is NYU is teaming up with more where did all your partnering with a major production than a dozen domestic and interna- gas pumps go? flown under the radar. studio in Brooklyn, opens the door tional partners in higher education BY DANIEL MASSEY But now three institutions— for Mayor Michael Bloomberg to and business to propose an interdis- PAGE 2 New York University, Columbia possibly select two winners. ciplinary campus in downtown While Cornell and Stanford uni- University and Carnegie Mellon “We’re extremely encouraged by Brooklyn. It would seek to capital- MTV. AOL. Clear versities have painted the town red University—are unveiling details of the level of enthusiasm that has See NEW BIDS on Page 29 Channel. It’s Act 3 to advance their proposals to build prospective campuses at other sites been demonstrated so far by both a $1 billion tech campus on Roo- around the city,adding a twist to an local universities and nonlocal uni- THE OTHER TECH SITE Nancy for Bob Pittman sevelt Island,other prospective bid- ongoing dogfight between the en- versities,” said Seth Pinsky, presi- Zimpher on SUNY’s big deal Page 11 PAGE 3 ders in the city’s competition have gineering powerhouses from Ithaca dent of the city’s Economic Devel- Baker Hostetler: the law firm that Bernie Madoff built Feds say PAGE 2 hedge fund star made it up Corey Ribotsky’s meteoric rise leaves BUSINESS LIVES a trail of ruined GOTHAM GIGS backers in its wake Pumpkin-art biz grows so fast, it’s scary P. 31 BY AARON ELSTEIN ● ANNE FISHER Sweet success for drinks In the first seven years of the new made with honey P. 31 millennium, Corey Ribotsky rode hedge fund mania to stunning for- ● MOVERS & SHAKERS tune and a conspicuous place in Fast rise from intern to New York philanthropic circles. El Museo chief P. 32 Back in the day, he claimed to ● GAEL GREENE Mexican have been one of Wall Street’s most menu for in crowd P. 34 successful hedge fund managers, generating what he termed in one of his blogs an “unparalleled 12- gettyimages month compound annual return of INDEX 20.68%.” His clients ranged from small investors all the way up to gi- THE INSIDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _8 ant Merrill Lynch.During his suc- VIEWPOINT _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _10 cess,he parlayed his wealth into the REAL ESTATE DEALS PLUS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _12 position of president of the Chil- NEIGHBORHOOD JOURNAL dren’s Medical Fund of New York, _ _ _ _ _ _ _ _ _ _ _ _ _16 Rethinking school lunch a charity that supports a Long Is- CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _24 land children’s hospital. FOR THE RECORD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _27 But last month, his stunning EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _31 rise hit a huge downdraft when the Ed Dept. wants more local produce on kids’ trays THE WEEK AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _34 Securities and Exchange Com- THE WEEK ON THE WEB _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _35 mission sued him for fraud. In its ness in Greenpoint. See HEDGE FUNDS on Page 29 BY LISA FICKENSCHER Developing a processing operation more than 60 miles from Dagele Brothers Produce may appear im- Frank Dagele, a produce grower in Florida, N.Y., took practical, but Mr. Dagele has his eyes on a big prize. a whirlwind tour this summer of industrial buildings Within the next several months, the city’s Depart- in Brooklyn. ment of Education will issue a request for proposals for His quest for the perfect space to wash and pack- its food distribution contracts.The current ones,worth ELECTRONIC EDITION age romaine lettuce from his 500-acre farm led him to about $142 million, expire next August. Local farmers a former Pfizer facility in Bedford-Stuyvesant; a va- hope that after many years of trying to get a piece of cant,100,000-square-foot building in East Williams- that business, the time is now right. NEWSPAPER burg; and the headquarters of a struggling small busi- See PUSH FOR LOCAL PRODUCE on Page 28 20111010-NEWS--0002,0003-NAT-CCI-CN_-- 10/7/2011 8:37 PM Page 1 IN BRIEF OVERSEAS BUYERS ACCOUNT FOR ONE-THIRD OF CONDO PURCHASES AND 15% OF ALL residential purchases in the city, according to a study by residential brokerage Stribling & Associates. During the peak of the market in 2007, foreign buyers accounted for as much as 30% of total purchases, said Stribling.The biggest overseas buyers today hail from Russia, China, Brazil and Argentina. Back in the early years of the new millennium, the top foreign buyers were Europeans, with the Irish leading the charge in New York. A 4,000-PASSENGER SHIP, THE NORWEGIAN BREAKAWAY, WILL SOON BE CALLING NEW York City home, now that owner Norwegian Cruise Lines has struck a two-year deal with the city.The ship, which is being built in Germany and will weigh in at 144,000 gross VANISHING BREED: tons, will be the largest ship to call New York its The Gulf station on home port when it arrives in May 2013.The East First Street and vessel, which will replace 2,400-passenger Second Avenue. Norwegian Star, is expected to make a minimum of 44 trips a year out of the city. It represents a coup for New York, which has been buck ennis aggressively courting the cruise industry in order to help boost tourism. MEMORIAL SLOAN-KETTERING CANCER With its gas stations closing, CENTER’S PROPOSAL TO BUILD A $142 MILLION outpatient cancer center in Westchester County was approved by state officials last week, despite strong opposition from local hospitals.The Manhattan’s running on empty state said that there are enough cancer patients for all providers, based on Department of Health projections that show an increase in Lines of cars get longer driver who usually stops at the Gulf station tourists rely on them for transportation. population and in the incidence of cancer in to fill his tank. “It’s hard to find anything Some blame the lure of lucrative profits Westchester. n as sell-offs take toll on near midtown. I switch shifts in this area, from real estate in midtown.Others say the island’s refueling stops and this is the only place that’s close.” ever-higher cost of delivering gasoline to Gas stations are nearly facing extinction inner Manhattan makes periphery loca- BY THE NUMBERS in Manhattan after years of sell-offs and tions more practical. BY BRIAN CHAPPATTA closures.Just last month,the Lukoil station “It’s just a sign of the times,” said Faith on West 13th Street and Eighth Avenue Hope Consolo, chairman of retail leasing at Weekly shift of the city’s economy It’s 4:30 p.m., and every employee at the shut its mini-market doors and plugged its Prudential Douglas Elliman.“Selling off gas BETTER THAN NOTHING The signs were weak, Gulf gas station on East First Street and pumps. That leaves a mere 41 stations on stations accelerated at the height of the mar- but many were positive. Data for jobs, both auto Second Avenue rushes outside to man the the island, versus 58 two years ago, accord- ket before the downturn, and now it’s pick- and retail sales, and manufacturing all rose. pumps. Like clockwork, hundreds of cabs ing to the Department of Consumer Af- ing up again.As money gets freed up and de- come rolling in for refueling,as drivers pre- fairs.