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Strange Bedfellows in Airbnb Dispute GOV. CUOMO eats (and eats and eats) his way through New York CRAIN’S® PAGE 33 NEW YORK BUSINESS ap images VOL. XXIX, NO. 41 WWW.CRAINSNEWYORK.COM OCTOBER 14-20, 2013 PRICE: $3.00 Strange bedfellows in Airbnb dispute Landlords, tenant groups find a common enemy in home-rental service BY MATTHEW FLAMM For Airbnb, it is pretty much an article of faith that its short-term home- rental service is no ordinary business but a community of users taking part in the “sharing economy.” But Airbnb is also helping to build another type of community, one filled with New Yorkers who ordinarily can’t stand each other: tenant advocates and building owners, who say that when it comes to stopping Airbnb, they share SANDY: 1 YEAR LATER a common cause. “I’ve always been on the opposite side of the table from [landlords],”said AA marathonmarathon efforteffort See AIRBNB on Page 31 Cancellation cost NYRR $4 million—and hurt its reputation. De Blasio’s Now Mary Wittenberg is rebuilding and expanding its mission top donor is getty images pension pal BY LISA FICKENSCHER IN THE DARK DAYS FOLLOWING SUPERSTORM SANDY, Mary Wittenberg believed deeply that the marathon scheduled for Sunday would be the inspirational event Class-action lawyer that the city needed to help it heal. When the calls came, louder and louder, to bundles thousands; cancel the event, she resisted. firm earns millions In taking that stand,the chief executive of the New York Road Runners,which organizes the ING New York City Marathon, became the object of intense vit- BY CHRIS BRAGG riol. She was seen as insensitive to the devastation in hard-hit communities, es- pecially in places like Staten Island. RUNNERS’ LOW: While taxi bosses, labor unions and Ms.Wittenberg today regrets that she and Mayor Michael Mary Wittenberg and other special interests that bet on Bill George Hirsch of NYRR Bloomberg, who also supported the race’s taking place, did- de Blasio’s mayoral candidacy are seen gave in to pressure and as the big winners of this election sea- n’t recognize sooner what others saw right away.Staten Island canceled the marathon after Hurricane Sandy son, one lesser-known figure stands to Borough President James Molinaro, for one, said that police crippled the city nearly reap handsome rewards under a de See MARATHON on Page 31 a year ago. Blasio administration. Jay Eisenhofer, the front-running Democrat’s top fundraiser, is a promi- 41 nent class-action attorney whose firm 5 REPORT EDUCATION specializes in representing pension Higher education faces change: Meet the funds in lucrative shareholder lawsuits against big businesses. The decisions executives reshaping the field PAGE 17 on who represents the city’s pension See PENSION PAL on Page 30 NEWSPAPER 71486 01068 0 20131014-NEWS--0002-NAT-CCI-CN_-- 10/11/2013 6:23 PM Page 1 EDITOR’S NOTE Confabulous FYICRAINSNEWYORK.COM If it seems from the emails and notices to readers that we here at Crain’s New York Business are City Council plays ball on producing more newsmaker events Willets Point development and conferences than ever, it’s because we are. “You’ve got another he City Council last week approved a Michael panel to moderate in like—what— signature project of Mayor Bloomberg three days?” a slightly sarcastic exec : a $3 billion retail, hotel and Glenn Coleman T at a cultural institution asked me as residential complex to be built in stages at Willets power networkers buzzed around Point, next to Citi Field. us at last week’s Crain’s Arts and Culture Breakfast. The deal came after the neighborhood’s councilwoman, Julissa Ferreras, negotiated a last- A visit to CrainsNewYork.com/events would have buck ennis informed the razzing rep that, no, we’re merely minute package of concessions for the community, hosting four major gatherings in the next five weeks. where opposition had long been concentrated among a slew of small industrial businesses, Our Curing Brooklyn’s Health Care Crisis mostly auto-repair shops, that occupy the stretch of dirt roads and tin shacks by the stadium. The city will spend $15.5 million to help Willets Point businesses relocate symposium, in the Borough of Failing Hospitals, is to make way for the on Oct. 24, and I look forward to joining my Crain’s development of a new public school and community space in the mall. More than a third of the colleague Barbara Benson in questioning the key 5,850 apartment units will be considered affordable. Meanwhile, the Related Cos. and Sterling players in that vital public-policy debate. (Our Equities will pay $15.5 million to improve and maintain Flushing Meadows Corona Park. Brooklyn hospitals forum in January 2012 attracted Ms. Ferreras also wrested a promise of $72 million in next year’s city budget for traffic ramps hundreds of Occupy Wall Street protesters outside. that will be built to link the site to the Van Wyck Expressway. —daniel geiger Just saying.) Our Rebuilding NY: One Year Later conference on Oct. 28 takes place the day before the POWER PLAY. Gov. Andrew Cuomo is The changes would save the restau- HOORAY! anniversary of Superstorm Sandy’s landfall. (The urging the state Public Service Com- rant industry an estimated $10 million mission to reject Con Ed’s proposal to a year in fines and other costs.(See Ed- DIANA NYAD, the first person to keynote address is an update on the state’s multi- hike typical electric bills by 4% and gas itorial, Page 14.) … NY AND L.A. VIDEO successfully swim from Cuba to Florida bills by 1.5% next year. The governor STARS ALIGN.Fast-growing video pro- without a shark cage, raised $100,000 billion-dollar recovery efforts from Gov. Andrew for Sandy victims in a 48-hour continuous Cuomo’s go-to guy on the topic, Howard Glaser.) said Superstorm Sandy and the recent duction company Alloy Digital in swim in Herald Square. troubles halting the Metro-North New York is merging with Los Our real estate confab on Nov. 7 brings together New Haven line were a reminder “of Angeles-based rival Break Media. onstage the marketplace masters who are reshaping the need to hold utilities accountable The newly combined firm, Defy Me- New York City, from expansion-minded tech for their preparedness.”The commis- dia,will be headquartered in Manhat- sion is expected to decide in Decem- tan and generate $100 million in rev- tenants such as Silicon Alley pioneer Kevin Ryan to ber. … TAXIS ROLL OVER MAYOR. The enue. It will target online audiences top executives at firms like Hines, Jamestown and taxi industry cheered a state Supreme between the ages of 12 and 34. … OY VEY! the Related Cos. And our half-day Future of New Court judge’s decision rejecting Mr. WHITNEY DUMPS BROKERAGE FOR FUND. UNDERCOVER NYPD York City conference, co-produced with the Bloomberg’s “Taxi of Tomorrow,” the Meredith Whitney is winding detective Wojciech city’s plan to create a uniform taxi fleet. down her namesake Wall Street advi- Braszczok was Partnership for New York City, is Nov. 20, with The requirement to buy the Nissan sory firm. The 2009 Crain’s 40 Under arraigned on gang- civic-minded executives such as Jeff Bewkes (Time assault charges in the NV200 minivan was set to go into ef- 40 honoree deregistered her brokerage biker gang attack on an Warner), Jon Oringer (Shutterstock) and Mary Ann fect at the end of this month.The city after three unprofitable years and is SUV driver. Tighe (CBRE) discussing our transition to a new will appeal. (See The Insider, Page 6.) now chief investment officer and … BIG CHINA DEAL. managing principal of kind of City Hall. Phew. I suspect I won’t be the only Greenland Holding Kenbelle Capital, a Crain’s staffer who will nap Thanksgiving weekend. Group, the developer ‘I think there’s hedge fund, filings re- … AFTER TRAGEDY, A SANDY HOUSE behind one of China’s a toughness veal. The 43-year-old SOLD. Federal funds for storm victims tallest towers,will take rose to prominence in were used by the city to buy the Sandy- THIS WEEK IN CRAIN’S a 70% stake in the $5 to her that 2007 for predicting ravaged home of Patricia Dresch.The billion Atlantic Yards there isn’t early that Citigroup Staten Island resident lost her hus- residential develop- would face huge band and 13-year-old daughter and IN THE BOROUGHS-------------------------- 3 ment at the Barclays in Bernanke’ losses. … CITY COMP- her Tottenville home during the storm IN THE MARKETS----------------------------------4 Center in Brooklyn.It —Christina Romer, former TROLLER’S CRONIES last year. The home will be rebuilt to is pegged as the chairwoman of President GET PRISON. City be more resilient and will be put up for THE INSIDER ----------------------------------------------- 6 biggest U.S. deal of its Barack Obama’s Council Comptroller John sale, with profits going into a fund to SMALL BUSINESS--------------------------12 kind for a Chinese de- of Economic Advisers, on Liu’s former cam- help other storm victims. … SOUL veloper. … EATERIES her close friend (and paign treasurer, Jia DOCTOR FLATLINES. The musical REAL ESTATE DEALS------------------- 13 CATCH A BREAK. The Brooklyn native) Janet “Jenny” Hou, and a about singing rabbi Shlomo Car- OPINION --------------------------------------------------------14 City Council ap- Yellen, who was nominated fundraiser, Xing Wu lebach and his friendship with leg- proved new bills to to replace Ben Bernanke as “Oliver” Pan, were endary jazz singer Nina Simone is the STEVE HINDY ------------------------------------------15 make it easier for Federal Reserve chair sentenced to prison first casualty of the fall Broadway sea- GREG DAVID--------------------------------------------15 restaurants to ace in- for using “straw son.
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