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REPORT HEALTH CARE HE’S THE MR. FIX-IT OF THE HOSPITAL BIZ And now he’s set his sights on P. 15 ® Plus: a acronym! P. 15

INSIDE VOL. XXVI, NO. 24 WWW.CRAINSNEWYORK.COM JUNE 14-20, 2010 PRICE: $3.00

TOP STORIES Gulf oil disaster Garment spills into NY lives center PAGE 2 High expectations for NYC’s tallest rezoning apartment tower PAGE 3 shelved Wall Street’s Protests, new views on summer bummer area’s value block plans IN THE MARKETS, PAGE 4 to decimate district Why LeBron James can have his cake BY ADRIANNE PASQUARELLI

and eat it, too after months of protests, NEW YORK, NEW YORK, P. 6 City is quietly backing away from a se- ries of highly controversial proposals to rezone the 13-block garment center. Among those was a plan announced BUSINESS LIVES last April that would have taken the 9.5 million-square-foot manufacturing district and sewn it into a single 300,000-square-foot building on West 38th Clocking Street. $10B

getty images “We always knew ANNUAL BY JEREMY SMERD that was kind of a CONTRIBUTION to the ridiculous proposal,” in march 2003, executives at software company says Nanette Lepore, a economy Science Applications International Corp. were fashion designer who GOTHAM GIGS CityTime scrambling for a way out of a deal with the city to has been at the forefront of the battle to build a timekeeping system for its 167,000 munic- fight rezoning of the district. Sylvia Weinstock would ipal employees. According to sources familiar with rather eat babka P. 25 A dozen years late, 10 times The contract was worth $114 million. But SAIC the planning process, the city is going G ANNE FISHER on the executives realized soon after taking over the work back to the drawing board and is con- pitfalls of making a its original price, not even from a previous contractor that there was no way they ducting a new study of the neighbor- hobby your job P. 25 could build a system for that amount.The city’s work hood, which it hopes to release this force was too large, its union rules too complex. summer. G MOVERS & SHAKERS half-finished. A twisted tale “We should have killed the deal right there,”says City officials declined to comment. John Authers says,break of the craziest contract ever See CLOCKING on Page 23 See GARMENT CENTER on Page 24 up the banks! P. 26 G GAEL GREENE hits Navy Beach in Montauk P. 27

INDEX City plots huge land deal with U.N. THE INSIDER ______8 Plan: Sell E. Side city properties to diplos OPINION ______11 REAL ESTATE DEALS PLUS ______13 to fund mile-long park; they get new tower OVERCROWDED: Consultants say that SMALL BUSINESS ______14 the United Nations CLASSIFIEDS ______20 nade. The hard part is that it in- needs expansion BY THERESA AGOVINO volves selling two city-owned of- FOR THE RECORD ______22 space. fice buildings, razing a playground HOT JOBS ______25 city and state officials are and constructing a new tower for EXECUTIVE MOVES ______25 crafting a byzantine plan to raise the United Nations. THE WEEK AHEAD ______27 money to close a 21-block gap in The extraordinarily complicat- the waterfront prome- ed proposal is still in its early stages, and it could easily fall apart as it

24 moves forward, given all of the

5 moving parts.Yet officials say it has a chance because it would offer a way to fulfill major,long-held goals ELECTRONIC EDITION for both the city and the U.N.:The international body would finally get the additional building it has NEWSPAPER See CITY PLOTS on Page 24 buck ennis 71486 01068 0 20100614-NEWS--0002,0003-NAT-CCI-CN_-- 6/11/2010 8:00 PM Page 1

IN BRIEF Lynch leading Barnes & Noble t THE NUMBER OF NEW YORK STATE RESIDENTS WHO PLAN TO BUY A HOME IN THE NEXT SIX months was up sharply in May, according to a poll conducted by Siena College Research BN.com’s market share , appointing Mr. Lynch chief ex- swallowed up by a cutthroat Institute, reaching the highest level since August ecutive.Since then,the 39-year-old new- bookstore chain. Thanks to 2008, right before the collapse of Lehman in e-books nearly 20%, comer has continued to put the good will Amazon, which has shown no Brothers. According to the monthly poll, 4.7% of of publishers to use—helping BN.com subtlety in its efforts to push consumers in the state plan to buy a home this but one-time Goliath grow its e-book market share to around publishers around, Barnes & year, up from just 3.4% the previous month and is now more like David 20%, placing it a distant second to domi- Noble is now David, with its 3% in May 2009. “There are signs that we are nant player Amazon.com, according Seattle-based rival taking starting to come out of a recession, [and] a lot of to company executives. on the role of Goliath. people are feeling better about their finances,” BY MATTHEW FLAMM Barnes & Noble’s relation- YOUNG says Doug Lonnstrom, professor of statistics and ships with publishers, which BLOOD: Mutual admirers finance at Siena College. when william lynch arrived at Barnes & were not always so friendly, William “publishers ab- Noble 16 months ago to run its online have become the company’s Lynch was solutely want us to named CEO RESIDENT PHYSICIANS AT ST. BARNABAS bookstore and launch its e-book program, secret weapon in its fight to in March. succeed,” Mr. HOSPITAL VOTED OVERWHELMINGLY TO FORM he had no book experience.That was a good survive the digital transition Lynch says. a union after a two-year fight. On Friday, the thing. Publishers were relieved to see that and avoid becoming the book “That’s driving National Labor Relations Board announced a the largest bricks-and-mortar bookseller industry’s Tower Records. their cooperation 119-to-2 vote in favor of the residents and was getting serious about going digital. Gone are the days of the with us in the interns joining the Committee of Interns and In March, the company showed just company being cast as the digital world.” Residents/SEIU Healthcare as their exclusive how serious, as brothers Len and Steve heavy, as it was in the 1998 Nora That cooper- bargaining agent. A hospital spokesman said Riggio handed over the reins of the com- Ephron movie You’ve Got Mail,in ation has taken Friday that it may appeal an NLRB decision pany they had run with an iron hand for which a cute independent shop was the form of some that allowed the vote to be counted. St. Barnabas administrators have maintained an aggressive anti-union campaign. NEW YORK IS A GREAT PLACE TO START A BUSINESS. THAT IS, UNLESS YOU NEED TO New Yorkers work on Gulf cleanup hire an engineer or take out a loan.Those are a few of the complaints levied against the Big Apple in a new study of the startup sector by Engineers, hairstylists, the city’s Economic Development Corp. Overall, New York got high marks. even bakers lend Respondents to an EDC survey credited the hand with oil spill city for a plentiful supply of potential clients, customers and employees, despite Wall Street’s habit of luring all engineering and math talent. BY HILARY POTKEWITZ New York also received accolades for its community of venture capitalists and angel within 24 hours of the sinking of the , but survey respondents said the city Deepwater Horizon oil rig, Mark Miller, could do better when it comes to availability of chief executive of Miller Environmental loans.  Group, was on the phone with Gulf Coast contractors working out the logistics of sending some of his people down to the disaster site. BY THE NUMBERS EVERY LITTLE BIT: The Calverton, L.I.-based company The Julien Farel Weekly shift of the city’s economy specializes in oil spill management, and salon is saving hair when Mr. Miller heard that BP’s platform clippings to be DON’T LOOK EAST Europe’s likely to be a drag sank, he knew that his company’s services used in oil- on the U.S. for quite a while, but Brazil, China, would be in demand. The 50-year-old lo- absorbing tools.  Japan and others are steaming ahead, and that’s good news for us. gistics specialist is on his fourth trip to the Gulf Coast since the accident. “It’s all a bit of a blur right now,” Mr. -38% $311.3K 45% Miller says of the first weeks after the spill, DROP in new AVERAGE annual RISE in freight when about 500 Miller Environmental en- foreclosures in Wall St. wage in cars carrying gineers, safety experts and oil cleanup pro- NYC in May from 2009, down trash in April/May a year earlier 21.5% from 2008 from a year earlier fessionals flew or drove down from the Source: Source: Independent Source: Association Northeast, many from New York, hauling PropertyShark.com Budget Office of American Railroads shallow-water skimming equipment, vac- uum trucks, and specialty boats and ma- chinery to deal with the spewing oil. BOTTOMS UP Liquor license approvals in New York state may appear a bit unsteady on their feet, but the trend is up. Long-distance assistance 200 within two weeks, Miller Environmen- tal had 60 vessels and a crew of nearly 800 160 in Louisiana, Mississippi, Alabama and 60 120 . It set up safety and compliance training for a local labor force, ordered a

80 fleet of outboard motors from a local com- buck ennis pany, found an apartment complex with 40 enough vacancies to house the crew, and from the Exxon Valdez disaster in Alaska to chief executive of Rockefeller Philan- 0 hired a local auto-parts supplier and me- tanker accidents in the Port of New York. thropy Advisors, offers two reasons for the 5/09 11/09 5/10 chanic to service its vehicles.“When we re- Other businesses are donating time or underwhelming response: The govern- Source: State Liquor Authority, Division of Alcoholic Beverage Control. spond to a spill, we assume we have to be products, while still others are making ment hasn’t declared the spill a federal dis- self-sufficient,” Mr. Miller says.“This is as good use of skills abundant in New York: aster,and people expect deep-pocketed BP vol. xxvi, no. 24, june 14, 2010—Crain’s New York Business (issn close to a military operation as you can get financial and legal expertise. to cover the losses. 8756-789x) is published weekly, except for combined issues June without being shot at.” But compared with more recent natural 28/July 5, Aug. 30/Sept. 6, and Dec. 20/Dec. 27, by Crain Com- Use what you have munications Inc., 711 Third Ave., New York, NY 10017. Periodicals There are about 20,000 people han- disasters, such as Hurricanes Katrina and postage paid at New York, N.Y., and additional mailing offices. dling cleanup and containment in the Gulf Rita or the earthquake in Haiti, the local suelyn farel doesn’t have any profession- Postmaster: Send address changes to: Crain’s New York Business, right now, and while most are from the response has been muted. The New York- al ties to the disaster—she’s head of busi- Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111.Fax Southeast, a handful of New York compa- based Audubon Society says it’s raised only ness development for the Julien Farel hair (313) 446-6777.$3.00 a copy, $59.79 one year, $109.79 two years. nies are also involved. Some, like Miller about $1 million so far, while nationwide salon and spa in Manhattan—and as a na- (GST No. 13676-0444-RT) ©Entire contents copyright 2010 by Crain Communications Inc. Environmental, are there in a professional just $4 million has been donated to chari- tive New Yorker, she has no relatives in the All rights reserved. capacity, hired for their industry expert- ties aiding the cleanup, according to The region, either. But for the past five weeks, ise—the company has tackled oil spills Chronicle of Philanthropy.Melissa Berman, See GULF on Page 23

2 | Crain’s New York Business | June 14, 2010 20100614-NEWS--0002,0003-NAT-CCI-CN_-- 6/11/2010 7:52 PM Page 2

to sales growth online U.S. E-BOOK RETAIL- RFP for SALES ESTIMATES

publishers allowing users of Barnes Amazon it was moving to a differ- for any device other than Ama- $99M 2008 eats on & Noble’s Nook e-reader to lend ent pricing model with the launch zon’s. titles to friends, giving the device of Apple’s iPad. In April, another Publishers insist that they’re ag- one feature not available with ei- fight erupted with Penguin Group nostic about where their e-books $296M ther Amazon’s Kindle or Apple’s (USA). are sold. But they say BN.com’s 2009 plazas iBookstore. Nook owners can also rapid sales growth has been over- stream books via Wi-Fi in Barnes Bad feelings linger looked by the press, which has fo- $666M & Noble stores. the differences were eventually cused on the Nook’s production 2010 Flatiron/ Not everyone has been persuad- settled, but Amazon’s practice of glitches and sexy products like the Source: IBISWorld ed—about 50% of BN.com’s cata- charging $9.99 for Kindle editions iPad. eyes log is lendable, while about 70% is of new titles left some bad feelings “They are the best-kept secret available for in-store streaming. with publishers, which had long in the e-book space,” says David food options But publishers credit Mr. Lynch felt that it undermined the value of Shanks, chief executive of Penguin with being a straightforward play- books.An Amazon spokesman de- Group. BY LISA FICKENSCHER er who heeds their concerns. clined to comment. The bookseller has a lot riding They don’t say that about Ama- Mr. Lynch’s strategy has also on its e-books program as its core the pedestrian plazas sprouting zon. Full-fledged fighting broke been to use an open format for e- bricks-and-mortar business de- Standard & Poor’s is projecting in the city may soon compete with out earlier this year when the e- books, called ePub, rather than a clines. Eroding store sales led rev- 2010 earnings per share to sink to neighborhood restaurants for con- tailer removed the “Buy” buttons proprietary format like that of the enue to drop 3% in fiscal-year $0.52,from $1.49 in 2009.And the sumers’ dining dollars. from books published by Macmil- Kindle. The aim is to make 2009, to $5.1 billion, while net in- company’s stock has fallen 26% in Last week, the Flatiron/23rd lan. The New York house had told BN.com the bookstore of choice come plunged 45%,to $76 million. See LYNCH on Page 24 Street Partnership put out a request for proposals for two food or bever- age kiosks to be installed in the pub- lic plazas adjacent to and across from the landmark Flatiron Building. Tim Tompkins, president of the p Alliance, says he plans to follow suit and issue an RFP later this summer that may include food NewNew rentalrental towertower options. Last month, the Alliance collected proposals from businesses responding to its requests for “expres- sion of interest”—a call for business- fillsfills talltall orderorder es to submit a variety of ideas for set- SOARING HOPES: ting up shop in its pedestrian plazas. Leasing at the is Culinary ideas only for 23rd Street Downtown’s Beekman expected to begin in the first quarter of the 23rd street business-im- seen drawing good crowd, 2011. provement district is just looking but units are pricey, and for culinary ideas. “We think there will be a lot of in- market is still shaky terest from within the neighbor- hood,” says the partnership’s execu- tive director, Jennifer Brown, BY AMANDA FUNG “though it’s not exclusive to [busi- nesses] in the neighborhood.” despite years of community opposition over One restaurant that has been very its size, a financial crisis that briefly threatened successful in public parks is celebrity to halve its height, and falling debris that ren- chef Tom Colicchio’s ’wichcraft dered neighboring streets hazardous, the city’s sandwich shop. AL FRESCO tallest residential spire will officially open its “I’m obvi- doors in about six months. ously interest- And after all that, the 867-foot Beekman ed in the RFP,” Tower is already being hailed as a winner.In a re- says ’wichcraft 25% markable about-face, many community officials partner Jeffrey ’WICHCRAFT expect their new 76-story, Frank Gehry-de- Zurofsky, who kiosks’ year-over- signed neighbor to raise the profile of the entire installed kiosks year sales growth area. Meanwhile, real estate brokers predict de- five years ago in veloper Forest City Ratner Cos. will not only in Bryant Park have little trouble renting the building’s 903 and more re- high-end apartments but that their arrival on the cently in and Greeley market will be perfectly timed. Square parks. Revenues at the four “The Beekman opening up is a good thing Bryant Park ’wichcraft kiosks have because there is plenty of demand,” says Jack grown 25% over each of the past two Berman, vice president at Metro Loft Manage- years, says Mr. Zurofsky. ment, the developer of nine luxury rental build- The 23rd St.Partnership is look- ings downtown. ing for a tenant for four years—the

buck ennis In fact, at this point the supply of eager length of its commitment from the wannabe residents in appears city for the pedestrian plazas. But it to be almost infinite.In recent years,the area has will not be able to offer electricity or ranked as one of the fastest-growing neighbor- running water at the location. hoods in the city. Today, an estimated 55,000 “We are not looking to build a people live there. That is more than double the Shake Shack,” says Ms. Brown. Of population in 2001 and is up from a mere 14,000 course, restaurateur Danny Meyer’s in 1995, according to a recent survey by the Al- popular burger stand is just a stone’s liance for Downtown New York. throw away in Madison Square Park. The area has always had more rental build- The RFPs are due in mid-July, ings than condos, but none quite like the Beek- and Ms. Brown hopes an operator man Tower, brokers say, noting that they expect can move in by the fall.The Flatiron it to draw residents from all over Manhattan. public plazas opened in August “There is no other building like it, with views 2008, and the city has not declared See NEW RENTAL on Page 24 them permanent fixtures like the Times Square and Herald Square

buck ennis plazas. 

June 14, 2010 | Crain’s New York Business | 3 20100614-NEWS--0004-NAT-CCI-CN_-- 6/11/2010 7:49 PM Page 1

or that Great Britain, Greece or an- other country will teeter into the economic abyss. IN THE MARKETS “The problems in 2008 were mostly about banks. Now, we have by Aaron Elstein something more severe, with people questioning the viability of united Europe and the euro,” says Nicholas Colas,chief market strategist at bro- kerage firm ConvergEx Group. Amid all the Sturm und Drang, BUSY WORK? Fewer two of Wall Street’s most profitable trades are a sign of Summer bummer businesses—selling shares and bonds the creeping for companies—have tanked. Eight malaise. initial public offerings were delayed for Wall Street last month, the most for any month bloomberg news in 2010, while junk-bond issuance fell by nearly 80%. The gloom has layoffs that began in late 2008 before after steadily rising over the past elcome to wall street’s summer of discontent. even hit brokerage-firm analysts, pausing in the fourth quarter of 2009. month as the European economic usually an upbeat group. They’ve As of April, banks had laid off about crisis took hold. While most of the industry’s attention is stopped raising revenue estimates for 7,000 New Yorkers in 2010, accord- Among today’s few Wall Street focused on Washington lawmakers as they hammer the companies they follow after near- ing to U.S. Labor Department data, successes is money manager Eric W Sprott out reforms that could make life less prosperous for years to ly a year of steady increases. bringing the number of people in the , who recently launched a mu- come, an inconvenient truth “Clearly,things are slowing,”says city who work on Wall Street to tual fund that offers a new twist on Joseph Amato, president and chief 157,000—the lowest since 1993. that old standby, gold. His fund’s has dawned on bankers: investment officer for equities at Those losses, which surprised indus- gold bars are stored at the Royal Suddenly, business stinks. Neuberger Berman,which has $180 try economists, may have deepened Canadian Mint, but if an Sales of new stocks and billion under management. due to the expiration of severance or decides that’s risky, Mr. Sprott will bonds, after a splendid start Expecting tougher times, Neu- retention agreements struck during ship it—on a Brink’s truck—direct- berger Berman bond-investment the 2008 megamergers of Merrill Lynch ly to the customer for a $5 per troy earlier this year, have nose- chief Bradley Tank sold debt he held and other institutions. ounce fee. Demand is so strong that dived.The corporate-merger in J.P. Morgan Chase and other big The good news? All of Wall the fund trades at a 10% premium whirl has slowed, and trading banks because their prices no longer Street’s lines of business can be re- over its asset value, and last month, reflected the challenges the institu- vived almost instantly. bankers at Morgan Stanley helped Mr. desks have gone quiet. tions face. Nonfinancial companies in the Sprott raise another $240 million, Layoffs, after pausing late last “We’ve ‘de-risked,’ ” he says, us- Standard & Poor’s 500 are hoarding bringing the total amount invested year, have resumed. Since ing a term often heard in financial an $838 billion pile of cash, which in the fund to $720 million. mid-April—coincidentally, circles lately. could fuel the next merger boom. Morgan Stanley bankers were “De-risking” means sharply lower And retail investors who have large- surely grateful for the work— perhaps, when the profits for banks and brokers. The ly avoided stocks could lift the market they’ve been rather idle lately. But government sued Goldman city’s Independent Budget Office ex- if they turn on bonds and other in- offering deal makers hope, the in- Sachs for —shares in big pects 2010 profits for Wall Street vestments that offer minimal returns. vestor is now weighing a concept ex- banks have fallen by 20% or more. firms to total one-half of 2009’s record More hope: the Inter- pansion. results, and to halve again next year. bank Offered Rate, which measures “Maybe we’ll start a gold-coin Few expect a quick turnaround, since every day seems to That’s forcing banks to make what banks charge each other for trust,” Mr. Sprott says, “or one for bring new worries that Congress will crack the whip on banks, more staff cuts, resuming a wave of loans, has leveled off in recent days silver Maple Leafs.”  No budget, big deficit? No problem everyone knows New York’s fi- tough, but folks eventually got paid, nances are a mess.The state has a $9 and investors are confident that New billion deficit and a government un- York will honor its obligations. able to cobble together a budget, New York bond prices are also forcing Gov.David Paterson to push benefiting because the state’s major through a series of emergency competitors in the credit markets are spending bills. Talk even surfaced in even worse shape.Illinois and Cal- last week of a government shut- ifornia have both had their credit rat- down. ings cut this year due to dire econom- Perhaps the oddest ic woes. New York’s AA thing: The state’s creditors rating seems safe, at least for don’t care. $60B now. In fact, yields on the AMOUNT OF “Economic dislocation DEBT on state’s long-term bonds have New York State’s here just hasn’t been all that actually dipped since the books bad,” Mr. Iselin says. budget impasse began in The state is fortunate for April, falling to 3.60% from 3.70%, another reason. Conventional mu- according to Bloomberg data,which nicipal bonds are in relatively short means demand for its debt has supply these days because many strengthened.This may sound crazy public authorities are issuing Build given that New York has $60 billion America Bonds, which don’t offer in debt on its books, no budget, and investors the same tax advantages. a legislature slow to approve one. Finally, government bond issues of But Neuberger Berman senior vice all sorts have rallied in recent weeks president James Iselin says there are as investors flee stocks and overseas reasons why the dysfunction doesn’t markets for less risky securities. matter to investors—yet. Still,investor patience has its lim- First, the antics in Albany are its.Late last week,amid talk of a gov- nothing new. Second, even in terri- ernment shutdown, some investors ble times, states don’t default. Sure, began selling, and yields on New California handed out IOUs to cred- York state bonds ticked up slightly,to itors last year when the going got 3.60% from 3.57%. 

e BusinessBusiness BaBanknk THE LOSS that Morgan Stanley’s -markets business would have suffered in the first quarter Sterling4Biz.com 212.757.1100 had the financial reforms being contemplated by $237M Congress been in effect, according to CreditSights. As it happened, the division generated profits of $799 million.

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sved 20100614-NEWS--0006-NAT-CCI-CN_-- 6/11/2010 4:05 PM Page 1

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As if Mayor Michael • Performs fi nancial feasibility studies (FHA/HUD Bloomberg’s shameless campaign to snag the approved) L soon-to-be free agent for the Knicks or Nets wasn’t • Offers fi nancial advisory services for health care facilities in bankruptcy enough, now restaurateurs are cashing in on the hype. Dishes inspired by King James have popped up on Take a step towards a better menus at places like Brother Jimmy’s BBQ, which has fi nancial future. Contact a location across from Madison Square Garden, home Lawrence Cafasso at of the struggling Knicks. 212.375.6914 today. On Sunday, the BBQ joint unveiled the King James All You Can Eat Rib Feast for $27.95.This follows the Second Avenue Deli’s $35 King James Heart Attack Sandwich, a triple-decker featuring potato pancakes, cole slaw and nearly every meat imaginable. At least two customers a day are ordering the artery- clogging sandwich, according to owner Josh Lebow. Junior’s just unveiled the LeBomb cheesecake (above), featuring the star in a Knicks uniform, wearing a crown made of Cinnamon Toast Crunch cereal and ringed with Fruity Pebbles and Trix, three of his favorite cereals.The cost? A few hundred dollars, says Junior’s owner Alan Rosen, who hopes “some sports fanatics will buy it.” New cast 2010 sales are on track to hit $40 DELTA’S PITCH million, twice those of 2009. of GMs What’s more, Vita Coco just DIDN’T GET TIX for this weekend’s inked a distribution deal with Dr local tv station general subway series between the Yanks Pepper Snapple Group, which will managers faced the music last and Mets? Head to Madison further bolster growth. “That week. Tribune Co. fired WPIX’s Square Park, where Delta, the gives us access to their distribution longtime leader, Betty Ellen teams’ official airline, will host muscle,” says Jeff Rubenstein, vice Berlamino—it has yet to replace the Delta Dugout, a first. Look president of consumer marketing. her—and NBC brought in a new for a JumboTron, general manager, Michael Jack, for visits from pitchers its flagship New York station, Joba Chamberlain Free kick WNBC. Tom O’Brien, WNBC’s and Mike Pelfrey for wines topper since 2008, has shipped (right), and a off to digital cable, where he’ll concert featuring forget soccer! September launch the barely watched former Yankee Wines & Spirits on Stanton Street channels at other NBC-owned Bernie is hosting a World Cup of Wine stations. Williams. Tasting, coinciding with this year’s The replacement GMs face a tournament. Known for selecting rough road, particularly in local worthy wines from unusual places, news. In May, WPIX’s 10 p.m. Coconut drink such as Morocco, Slovenia and news drew just 58,000 viewers in Greece, September’s owner, Steve the advertiser-friendly category of gets ad lift Flynn, has procured wines from all adults 25 to 54. Rival WNYW’s 32 World Cup qualifying news, which had Fox hits vita coco, which boasts Madonna countries and is holding free American Idol and Glee as an investor, is upping its nightly tastings, pitting countries for its lead-ins, scored celebrity quotient with a head to head.The vintage that 231,000 viewers, new advertising sells the most that night advances according to Nielsen. competition to be judged to the next round. Early matchups WNBC broadcasts by Spike Lee (below). include South Africa’s Vinum LX New York at 5 p.m. Co-sponsored by Africa Chenin Blanc versus Spain’s The lifestyle program JetBlue, the competition Avinyó Vi D’Agulla Blanco, and drew just 18,000 calls for entrants to create Australia’s The Lackey Shiraz viewers 25 to 54 years 30-second spots for the versus Portugal’s Casa Cadaval old—putting it behind coconut drink. Entries must Padre Pedro. every other news be postmarked by July 23. “The suppliers have fun program at that hour The winning ad will run with it,” Mr. Flynn says. and crippling the 6 on JetBlue flights every day “Some will show up to p.m. news, which came for two months starting in pour wearing their team’s in sixth with that September, and its creator jerseys, and there’s a fair audience. “They’re will be invited to lunch amount of trash talking.” losing millions of dollars a year with the famous filmmaker. El Chaparral, a in revenue,” says a local media Meanwhile, JetBlue will Grenache from Spain, buyer. offer Vita Coco in-flight. won the inaugural A WNBC spokeswoman The six-year-old tournament in 2006. responds that LX, which has a lot Manhattan-based of product integration, is a distributor says it already Contributors: Lisa success. “We’re getting a younger has 60% of the market Fickenscher, Matthew and wealthier demographic,” she (competitors include Flamm, Carl Gaines, says. Zico and O.N.E.), and Hilary Potkewitz bloomberg news 6 | Crain’s New York Business | June 14, 2010 Project3:fp template.qxd 6/10/10 12:38 PM Page 1

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explore the possibility of offering early retirement packages as an alternative to layoffs for city RIGHT TO REPAIR Albany gears up THE INSIDER employees, but only if the payouts LAWMAKERS AND LOBBYISTS in Albany are revving up their engines for do not increase city pension costs. another fight over “right to repair” legislation. A hearing was held last week on Michael by Erik Engquist, Daniel Massey and Jeremy Smerd Despite Mayor a bill requiring carmakers to Bloomberg’s decision to freeze pay share diagnostic codes and for teachers—a move expected to tools with vehicle owners and save 4,400 jobs—the city faces fur- mechanics, even those not ther layoffs if $600 million in feder- affiliated with dealerships. al funding cut last month by Con- The legislation was gress is not restored. Officials have introduced in the Senate by said that the only way to compen- Jose Peralta, D-, sate for the loss of the funding— who inherited the bill from his known as the Federal Medical As- predecessor, Hiram sistance Percentages—would be to Monserrate. Proponents say ax city workers. consumers should be able to Mr. Bloomberg has repeatedly made the case that early get their cars fixed without retirement packages generally cost paying extra for access to diagnostic codes. the city more than keeping Automakers say giving away codes is like giving away patents. Aftermarket veteran workers employed. In parts-makers would use the codes to “reverse-engineer” parts, which they those cases, the savings from would manufacture in China and sell on the cheap. reducing the size of the work force Unions oppose the bill on grounds that aftermarket parts-makers ship are lost because pension costs kick union jobs overseas. Proponents and their financial backers—AutoZone, in sooner. Those costs are NAPA, Jiffy Lube—counter that car parts are currently made in nonunion compounded if the city hires a shops all over the world. replacement employee. Dealerships given a second life by the Obama administration’s industry A better option, city Budget bailout are especially nervous. With car sales tepid, dealers rely on revenues Director Mark Page said, could be from parts and service, both of which tend to be more expensive at City Council eyes the use of one-time severance dealerships than at local mechanics. incentives that “can help the Mr. Peralta cites figures from the National Automobile Dealers Association volunteerism of reducing the work that say parts and service account for only 11.8% of dealers’ sales but 48% budget cuts force.” of profits. New cars comprise 60% of sales but 35% of profits. His implication On the revenue side of the is that dealers overcharge a captive market. budget equation, the Bloomberg Mr. Peralta said legislators will probably not vote on the issue this year. ity budget negotiations enter the home administration said it has stretch this week—with or without funding from abandoned two tax proposals because state approval was unlikely. Albany or Washington.The City Council’s Extending the mortgage-recording budget-negotiating team meets Tuesday to hash tax to co-ops would have raised $50 Rockaway boat Station-agent out a consensus on what must be slashed.The million, and a sales tax on airline is ferry expensive debate at MTA Council will try to wait to pass a budget until the state does, fuel would have netted $169 C million. Critics said the aviation tax the city announced last week public advocate Bill de Blasio is but it has a hard deadline of June 30. may have violated interstate that it would spend $10 million to calling for the Metropolitan The Bloomberg administration said last week that it would commerce laws. implement bus rapid transit for Transportation Authority to rehire 54,000 East Side riders.That’s $185 260 station agents who were laid off per passenger to speed up a route to help close a $400 million deficit. with an operating cost of $2.46 per He has not suggested other cuts to ride.Three months ago, the City offset the $75,000 that each agent Council extended the service of the costs the MTA,and he opposes a Rockaway Ferry by shelling out fare increase. But his office says $1,250 for each of the ferry’s 80 riders’ safety makes the agents a daily commuters.That’s about $20 necessity, adding that when the per ride, or more than three times MTA eliminated 212 station agents the $6 fare. Ferry service succeeds last year, fare-beating losses climbed when the ridership is well-paid, $13 million.That’s $61,320 per works near the landing dock and station agent.The MTA says the lacks a fast mass-transit alternative. fare-beating number grew because of It appears unlikely that funding for a change in the way it is calculated. the Rockaway Ferry will be extended beyond June 30. Out in front Building a for Lieber’s job better boycott robert steel, a former Goldman Sachs executive, Wachovia chief the new york Building Congress and U.S.Treasury undersecretary, says its campaign-donations boycott has emerged as the frontrunner to of state legislators is replace Robert Lieber as gaining traction with deputy mayor for eco- other building groups nomic development, in- and unions. But it is siders say. Mr. Steel was unlikely to have much in for an interview last effect. Some of the week. He worked for group’s heaviest-hitting nearly three decades at members say they haven’t Goldman, retiring in heard of the boycott. 2004 as vice chairman. Building Congress After a stint at the U.S. President Richard Robert Steel Department of Treasury Anderson says his group under Henry Paulson,he contributes about $2,000 per was brought on in 2008 to save month to politicians, adding that Wachovia, but there was a run on he denied three donation requests the bank and he ended up leading in a matter of days. its sale to Wells Fargo. 

For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider

8 | Crain’s New York Business | June 14, 2010 CN013753 6/4/10 2:51 PM Page 1

IT’S NOT JUST WRONG to discriminate against lesbian, gay, bisexual and transgender employees in New York City — IT’S ILLEGAL. Supporting LGBT employees is good for the individual, the community and your business.

On June 16, 2010 the Empire State Pride Agenda Foundation will hold its seventh annual Equality@Work Awards Luncheon in New York City. The Awards honor companies and individuals who are working to create an inclusive work environment.

The Pride Agenda is proud to honor the following companies and individuals who have helped to create workplaces that respect, welcome and support LGBT professionals and empower them to perform to their fullest potential:

2010 AWARD RECIPIENTS

CORPORATE HONOREES INDIVIDUAL HONOREE

JP Morgan Chase KPMG Lisa Linsky

Pride in My Workplace is a program of the Empire State Pride Agenda Foundation. For more information visit www.prideagenda.org or contact us at 212.627.0305 or [email protected].

Winning Equality and Justice for Lesbian, Gay, Bisexual and Transgender New Yorkers and Our Families 20100614-NEWS--0010-NAT-CCI-CN_-- 6/11/2010 2:25 PM Page 1

VIEWPOINT A better culture for small biz? editor in chief Rance Crain publisher, vp Jill R. Kaplan ast week, three City Council members the administration should go further and allow all violations EDITORIAL introduced a bill to allow drivers to pull up to be fought remotely. It is not reasonable to expect small editor Xana Antunes beside a parked car to drop off or pick up business owners to travel across the city to hearings. managing editor Glenn Coleman deputy managing editors Valerie Block, passengers, or to wait behind a driver More sensible enforcement is only part of the city’s effort. Erik Ipsen vacating a parking space. It turns out that contributing editor Another is to make it easier to launch a business. Opening a Elizabeth MacBride these practices, as common as breathing, restaurant now may require approvals from 12 city agencies columnists Greg David, Alair Townsend politics editor Erik Engquist are illegal. Overzealous traffic agents are and 10 state and federal agencies. pulse editor Barbara Benson writing $115 summonses for them. In fact, business is confronted with a bewildering array of senior reporters Theresa Agovino, New Yorkers have long complained of aggressive 444 licenses, permits and certificates. Of those, businesses Aaron Elstein, Lisa Fickenscher, L Matthew Flamm, Miriam Kreinin Souccar enforcement. City fine revenue is up 5% this year and 17% can apply for only 33 online. Believe it or not, this is progress: reporters James Comtois, Amanda Fung, Daniel Massey, Adrianne Pasquarelli, over 2006 levels, and Mayor Michael Bloomberg has budgeted Until recently, the number was zero. More forms are being Hilary Potkewitz, Jeremy Smerd another increase for fiscal 2011. Beyond the numbers, there’s posted all the time at art director Steven Krupinski deputy art directors Carolyn McClain, a “gotcha” mentality among city enforcement agents that is nyc.gov’s Business Daniel Mednick City Hall vows staff photographer Buck Ennis all too familiar, especially to operators of small businesses. Express page. copy desk chief Wendy Zuckerman Despite recurring rhetoric from politicians that small to stop treating The city is also copy editor Thaddeus Rutkowski research editor Denise Southwood businesses are the lifeblood of local communities, merchants reviewing the hundreds assistant research editor Maia Blume still believe that the city is out to get them. businesspeople of new rules churned editorial researcher Selena Shen editorial interns Carl Gaines, David Montalvo But, at long last, there are stirrings of change. Earlier this as targets out every year to assess www.crainsnewyork.com year, the mayor and the City Council, under Christine whether they are web editor Brian Tracey senior producer Elisabeth Butler Cordova Quinn’s leadership, enacted a Business Owners’ Bill of essential, and it’s putting producer Kira Bindrim

Rights. While it lacked teeth, it signaled that government is the rulemaking process EDITORIAL AND ADVERTISING OFFICES attempting to change not just the practices but also the online.That will help 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 culture of the bureaucracy. merchants, who often learn about rules the hard way. advertising: 212.210.0259 A team of administration officials is working to If reform is to take hold, agencies must start tracking how Cable craincom nyk streamline inspection processes, cut red tape and shine light Fax 212.210.0499 long they take to process applications and complaints, and Entire contents ©copyright 2010 Crain on a system that last year imposed 300 new rules on they must do a better job of sharing information. Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP businesses with little input from them.The idea is to treat Top officials from a slew of agencies are collaborating on Inc., used under license agreement. businesspeople not as targets, but as customers. this project.They have convened focus groups of small TO SUBSCRIBE: In one promising development, business owners are being businesses and are working with chambers of commerce. Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. given the chance to correct more violations before fines are The task facing them is large, complicated and far from www.crainsnewyork.com

levied.This is crucial, because many regulations are so arcane certain to succeed. Even as we ask what took the Bloomberg ADVERTISING AND MARKETING that fines are simply hidden taxes. Parking and consumer- administration so long, we applaud the effort—and eagerly advertising director Trish Henry affairs violations can now be contested online and by phone; real estate sales manager Cornelius P. Gore await some results. senior account managers Irene Irvill, Courtney McCombs, William E. Squitieri account executive Anthony Mowad sales manager, classified print & online John Gallagher CRAIN’S ONLINE POLL COMMENTS sales coordinator, print & online Lulé Haznedari newsletter product manager WOULD YOU RE-ELECT Alexis Sinclair credit Todd J. Masura 313.446.6097 REP. CHARLES RANGEL? marketing director Amy Crossman An imperfect union director, audience development Date of poll: June 7 John LaMarca 416 votes UNION HOOEY Center and great eateries and gathering places. senior audience development manager I have been told confidentially that my nose Tarek Cotran what a bunch of hooey from the unions goes into the air more frequently since I moved general manager, interactive Yes. He has (“Public unions face growing firestorm,” June here from “The Village” (where?). Marc Minardo . 21% 7). Some of these folks railed against Wall —ruth a. unterberg web developer, interactive served his Chris O’Donnell constituents Street “fat cats.” Who are they calling fat? well over his Unions suck the marrow from the bones of my husband invented a name for my work NEW YORK PRODUCTION

40-year taxpayers, their members and the public purse. neighborhood, south of Dumbo, north of production and pre-press director congressional . 79% —william butler MetroTech and east of Heights: Michael Corsi career. TriFoByFlaTiJay, or Triangle formed by advertising production manager no way should MTA front-line workers get Flatbush,Tillary and Jay. As in, “Welcome to Suzanne Fleischman Wies $100,000-plus in pay.They seem to complain TriFoByFlaTiJay,” or, “I’m renting an PUBLISHED BY CRAIN COMMUNICATIONS INC. No. Ethics about their raises, yet at the same time, they overpriced condo, which didn’t sell because of chairman Keith E. Crain accusations have outpaced private-sector employees by a overdevelopment in TriFoByFlaTiJay,” or, “I president Rance Crain have damaged significant amount. If you look at countries wish there were an affordable grocery store in secretary Merrilee Crain his reputation, with high percentages of unionized labor, such TriFoByFlaTiJay.” treasurer Crain credibility and as France, you can see where we will be —rona solomon executive vp, operations William Morrow effectiveness. senior vp, group publisher Gloria Scoby headed. group vp, technology, circulation, —raymond lee TV OR NOT TV. THAT IS NO QUESTION manufacturing Robert C. Adams vice president/production & re: the Empire State Tax Incentive to manufacturing David Kamis NAME GAMES chief information officer Paul Dalpiaz encourage the production of TV series in New corporate circulation/audience it’s ok to name your own neighborhood York (“It’s a showstopper,” May 24). With development director Kathy Henry “SoHa,” “FiDi” or “NoMad,” but don’t change teachers not getting raises, how do city and founder G.D. Crain Jr. (1885-1973)

bloomberg news my “” (“Name that Hood,” state government give multimillion-dollar tax chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: Go to June 7). It stands for a great art museum, breaks to multibillion-dollar corporations? www.crainsnewyork.com/poll to have your say. Hunter and Marymount colleges, good —robert goldstein hospitals, the Neighborhood Sherman Oaks, Calif.

10 | Crain’s New York Business | June 14, 2010 20100614-NEWS--0011-NAT-CCI-CN_-- 6/10/2010 8:01 PM Page 1

OPINION

cultural institutions, research cen- ters, nonprofit —to Schools’ progress compete to develop pilot training programs for teacher certification. For high schools with the lowest graduation rates, we will intervene an excellent start directly to shake up the status quo. Districts will work with the New York State Education Department BY MERRYL H. TISCH to either redesign or replace the school;convert it to a charter school; n june 1, New York state submitted its second- bring in an outside education-man- round application to qualify for nearly $700 mil- agement organization to run it; transform the school through a rig- lion in federal funds from the Obama administra- orous plan agreed to by teachers, tion’s Race to the Top initiative.Our application students and parents; or close the marks the culmination of a year of dizzying school entirely and transfer the stu- change and bold reform that shows just how far we can go as a dents to schools that work. O The Board of Regents and the state when we come together to make sure our children succeed. Education Department also worked A little over one year ago, when I became chancellor of the closely with Mayor Michael Bloomberg and Chancellor Joel Board of Regents, state law barred King, a leader of some of the most Klein to advocate for continued ex- the use of student data in teacher innovative charter schools in the pansion of charter schools in New evaluation. Charter schools were country, New York is now at the York City and throughout the state. In honor of Crain's New York capped at 200. Teacher preparation forefront of implementing reform. Together, we were successful in was solely the provenance of educa- Our new teacher-evaluation sys- working to raise New York’s charter Business' 25th Anniversary and tion programs more focused on the- tem will use student data to help cap to create 260 new charter commitment to New York City, ory than on the practical skills nec- identify and reward effective teach- schools over the next four years. essary to succeed in the classroom. ers,to provide targeted development All of these reforms—enacted in the Empire State Building New York’s data system was ill- for those in need of additional sup- less than one year—add up to an ex- equipped to truly measure student port, and to create a fair, expedited traordinarily strong application, but will shine blue and white on performance and hold both teachers process for removing ineffective more than that, they show what’s the evening of June 28th. and school leaders accountable. teachers from the classroom. possible when parents, school lead- Fast-forward 12 months: Under Our new teacher-preparation ers and elected officials come to- the leadership of our new state com- initiative aims to provide high-need gether to do what’s right for our missioner of education, David schools with the best teachers and to kids. Steiner,one of America’s leading re- instill accountability in teacher formers of teacher preparation, and preparation by introducing compe- Merryl H.Tisch is the chancellor of the New First Deputy Commissioner John tition from nontraditional places— York State Board of Regents.

down their reimbursements and the many cost pressures they face. Budget cuts not as Businesspeople won’t be sympa- thetic at all. They have coped with far larger revenue hits and survived. Similar math applies to the in- drastic as claimed evitable cuts in state aid for educa- tion, where teachers’ unions are prophesying crippling layoffs. The hile the headlines are dominated by reality? School districts have already worries that the state crisis will lead to a adopted budgets that assume the government shutdown, the state is slowly worst, they have built up reserves to cushion the blow, and they have an inching toward a budget that will contain enormous opportunity to reduce significant reductions in government their out-of-control labor costs if spending.The city will adopt its own spending plan by the end they would only try. W The projections for job losses are of the month with cuts, as well.The question sure to be asked is almost certainly exaggerated. Even whether the budget cuts will hurt the local economy. my friends at the Independent Bud- get Office, who have been right on so It’s the wrong ques- New York-Presby- many things, have assumed large tion to ask. But if you terian Hospital will lose public-sector layoffs. Of course, they insist, the answer is al- $12.5 million. Its 2009 did that before the mayor found a way most certainly no. operating budget was to avoid cutting 4,000 or so teacher Consider health care. $3.1 billion.The reduc- jobs. Expect more actions like that. The emergency budget tion in percentage Even if less government spending adopted earlier this terms? 0.4%. That’s leads to job losses,the economic impact month “slashed’’ health right: four-tenths of 1 wouldn’t necessarily be bad.If such cuts care spending by some percent. The figure is a were avoided by raising taxes,for exam- $700 million. Sounds little worse for St. ple, workers would have less to spend like a lot,right? The hos- Luke’s Roosevelt: 0.7%. and businesses less to invest. The pri- pital trade associations GREG The hospital execu- vate sector could lose as many jobs as certainly think so, de- DAVID tives reading this are now were saved in the public sector. scribing the impact in fuming. They are saying So the right question to ask when apocalyptic terms. So to themselves that I have state and city budgets are adopted is what percentage reduction in rev- ignored all of the previous reductions what the overall impact will be, not enue do you think most hospitals will in money from the state, along with what layoffs and closures will mean see? Five percent? Ten percent? the way insurers are trying to hold for the economy. The Empire State Building image® is a registered trademark of ESBC and is used with permission. CRAIN’S WELCOMES outside submissions to its opinion page. You may send a column of 475 words or fewer to [email protected]. Please include the writer’s name, address and telephone number.

June 14, 2010 | Crain’s New York Business | 11 20100614-NEWS--0012-NAT-CCI-CN_-- 6/11/2010 11:23 AM Page 1

OPINION Darkest year for THE MONEY PIT: The LMDC is sitting Taxpayer dollars on unused funds. Wall St. Wages fell 21.5%, are not at work according to analysis

BY JULIE MENIN BY DANIEL MASSEY here is buried treasure in lower Manhattan, hidden in a public place—some $275 million to be wall street profits soared last year to record levels on the back of exact, not in the ground, but on the books of the near-zero interest rates. But by one Lower Manhattan Development Corp. measure—securities industry wages Provided by Congress for the post-Sept. 11 re- and salaries—2009 was the darkest building effort, the money is gathering dust instead of generat- year in modern history, including T buck ennis the Great Depression, according to ing jobs, housing or schoolrooms. an analysis of new federal data by the The very existence of the hoard has only come to light as a subrecipient agreement—should be The balance of the unspent pot is Independent Budget Office. made available promptly through made up of $30.8 million for trans- Average annual wages in the city’s result of an accounting demanded mately $150 million to $170 million small-business loans and grants. portation improvements, $37 mil- securities industry plunged 21.5% by Community Board 1 to deter- remains unallocated. This money $12 million for affordable hous- lion for economic development and from 2008, to $311,279 in 2009, says mine what the LMDC has spent,on could be appropriated to launch a ing in lower Manhattan: Downtown $5.64 million to cover administra- David Belkin,IBO senior economist. which projects, and what funds re- project such as the Performing Arts faces an acute need for affordable tive fees. Again, are these funds still Over two years, the wages fell 24.6%. main unallocated. Center, which would create imme- housing, and these funds could be needed, or can they be utilized else- The tumble’s primary cause was At its inception, the LMDC was diate construction jobs downtown used to develop sites, including where? the industry’s “crack-up in 2008,”he given the task of distributing $2.783 and fill in an important missing World Trade Center Tower 5,under According to the recent U.S. writes. Firms posted record losses, billion in Community Develop- piece of the revitalization plan for the 80/20 affordable-housing pro- census, lower Manhattan is the revenues were halved and the year- ment Block Grants. Although a rel- the neighborhood. gram. fastest-growing residential neigh- end bonus pool shrank nearly 40%. atively small percentage of the total $28.6 million for cultural pro- $3 million for education: These borhood in New York City. Our Also, Wall Street revenues did remains, $275 million is hardly a gramming: This pot includes almost funds, which the LMDC trans- booming population growth has far not keep up with surging profits,Mr. rounding error. $10 million initially allocated to the ferred to the city,should be immedi- outpaced the development of Belkin notes, leading to job-shed- These are taxpayer dollars, and Drawing Center, which apparently ately allocated to our local public schools, community centers and ding throughout 2009.The city’s se- they are not at work.The public has no longer intends to relocate to low- schools, which are threatened with other needed facilities—and we just curities industry lost 18,400 jobs in the right to know why money ex- er Manhattan. These and the re- crippling cuts in the upcoming lost a major medical facility. School ’09,dragging salaries down for those plicitly intended to stimulate rede- maining funds should be reallocat- budget round. overcrowding has reached a crisis who remained, with non-bonus velopment languishes as though in a ed to any number of productive $14.3 million in the Fulton Corri- point, and after-school and other baseline wages declining by 7.4%. miser’s till. And the LMDC should cultural purposes. dor grant program:This program for needed programs are threatened by By comparison, overall wages be obliged to divert funding to more $4 million in economic-develop- retail-shop owners to improve their proposed budget cuts. dropped 10.1% in the post-Sept. 11 pressing needs if original plans no ment (small-business) funds: Many storefronts has only paid out In the face of such urgent unful- recession, according to Mr. Belkin’s longer warrant the investment. small businesses are struggling to $270,000 to date. We are told that filled needs, it makes no sense for analysis. Before that, there had been Here is the LMDC’s accounting overcome adverse impacts from the some $2 million will be allocated to the LMDC or the city to sit on these only three occasions since 1929 when of unspent funds: long period of post-Sept. 11 re- cover cost overruns for parks in the funds—for years. It is time, indeed they fell by at least 10% in a year. $150 million to $170 million for building and reconstruction activity. area,but the limited use of the funds long overdue, to act now. He cites “the challenge [the city] utility expenses: Congress funneled Their needs are particularly urgent, thus far may indicate insufficient could face adjusting to a securities money to the LMDC to distribute given today’s challenging economy, demand.Unneeded funds should be Julie Menin is chairperson of Community industry that is unable to return to to utility companies to repair dam- and the funds—which the LMDC reallocated to other transit improve- Board 1 and a board member of the Lower the kind of breakneck earnings aged infrastructure, but approxi- transferred to the city through a ments. Manhattan Development Corp. growth [of ] the last 20 years.” 

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12 | Crain’s New York Business | June 14, 2010 20100614-NEWS--0013-NAT-CCI-CN_-- 6/10/2010 8:01 PM Page 1

REAL ESTATE DEALS PLUS

Banks see good market for bad debts MORE IN STORE

ommercial real estate lenders are finally Meanwhile, Eastdil Secured is move on. 0.98M marketing a $65 million mortgage on “With turbulent markets, most SQUARE FEET of retail space doing their spring cleaning. 1414 Sixth Ave., which Murray Hill lenders would rather not become available for rent in June south of Increasingly, they are selling loans whose Properties was trying to turn into a owners of properties,” says Douglas borrowers are either delinquent or likely to hotel. Eastdil is also selling mort- Harmon, senior managing director gages on the at 885 of Eastdil, which is currently mar- become so soon. For example, Anglo Irish New Third Ave.—Bernie Madoff ’s old keting $2 billion worth of debt. York Corp. is hawking loans on three upscale hotels owned by digs—and 292 Madison Ave. “The aggravations associated with C Lenders feel more confident selling Alexico Group for a combined total of $350 million to $400 foreclosure, combined with often- 14.2% RETAIL VACANCY RATE in June; million. It was unclear if Alexico had defaulted on any of the loans because the improving econo- times hefty capital-infusion re- my has lead to more demand. In ad- quirements, are not the cocktail of down from 15.2% a year ago loans. But at least one of the properties—The Mark Hotel on dition, many are increasingly eager choice for lenders.” East 77th Street—has run into substantial problems. to shed some of their bad debts and —theresa agovino Source: Optimal Spaces

Empire State gets Ryan Kass of Newmark Knight announced that it will open a 2,600- Jeweler grabs gem late September. Frank. square-foot store on West 14th —adrianne pasquarelli shopping firm Last year, New York’s tallest Street this fall. of a location building embarked on a green retro- Brokers credit the rush for space austro-swiss company Lyoness fit as part of its $550 million upgrade to the elevated park, a chicago jeweler has selected Broker flees has signed a five-year lease for 6,000 program. which opened a year ago, as well as for his first New York to frozen yogurt square feet at the Empire State Building —amanda fung the planned 2015 arrival of the outpost. Oreste Cardillo recently that will become the firm’s U.S. Whitney Museum. Retail asking signed a 10-year lease for 600 square given how sluggish things have headquarters. The asking rent for rents remain strong in the district— feet at 1039 Third Ave.The asking rent been in the retail real estate market, the partial 27th-floor space was $45 Clothier finds spot on West , they are be- was $200 a square foot. it makes sense that some brokers are per square foot. in meat district tween $350 and $400 a square foot, “Rents [in this neighborhood] are branching out. Max Dylan Lu, a “During our tour of the building, on Washington Street between climbing back broker with M Properties, is among they were impressed with all the up- the meatpacking district is in- $250 and $300 a square foot, up,” says Faith them. He is dipping a finger into a grades and the first-class services creasingly giving SoHo a run for its and under $200 for Little West Hope Consolo, a much cooler business, frozen the building has to offer,” says money as the Big Apple’s designer- 12th Street. broker with Pru- dessert, by signing a 10-year lease to Christine Traina of Prudential duds destination of choice. British The new Ted Baker store, dential Douglas open a Berrywild at 2286 . Douglas Elliman, who represented clothier Ted Baker, which has oper- which includes 3,000 square Elliman. Ms. The asking rent for the 350-square- the tenant, which bills itself as an ated a store on in SoHo feet of ground-floor space, was Consolo and her foot space was $240 a square foot. “international shopping communi- for a dozen years, recently signed a rumored to have an asking rent colleague Joseph “I’m still in real estate, but the ty” that aims to helps consumers get seven-year lease at 32-36 Little W. 12th near $210 a square foot. Laura Aquino repre- market was so slow last year that I discounts and rebates from retailers. St., according to real estate sources. Pomerantz, the PBS Real Es- sented both Mr. started looking to some other invest- Lyoness claims more than 600,000 With the new store, part of an tate broker who represents the Cardillo and the ment opportunities,” Mr. Lu says. customers and 15,000-plus partner aggressive expansion for the 22- design house, declined to com- landlord, a joint Set to open this month, the retailers across more than 12 Euro- year-old label, Ted Baker will join ment. Landlord Romanoff Eq- venture between Berrywild store will be operated by pean countries. industry stalwarts in the neighbor- uities, which is constructing a 1039 Third Ave. BlackRock and Mr. Lu and partners Justin Sarang The company’s new office is cur- hood,including Diane von Fursten- 10-story tower at 860 Washing- Northbrook and Kiyoshi Yoshimura. Landlord rently being built out,and the tenant berg and Tory Burch. ton St., did not return calls request- Partners. “At their high, they were 221 W.82nd St.Equities Group was expects to move in by the end of the Recently,cosmetics giant Sepho- ing comment. between $275 and $300,but the high represented by Ami Ziff of Time summer, according to Ms.Traina. ra signed on for 4,500 square feet at Ted Baker is expected to open as this year will be between $225 and Equities, which manages the space. Landlord W & H Properties was 21-27 Ninth Ave., and earlier this early as September. $250,” she says. Mr. Lu represented himself. represented by William Cohen and year,denim giant Levi Strauss & Co. —adrianne pasquarelli The new shop plans to open in —adrianne pasquarelli

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June 14, 2010 | Crain’s New York Business | 13 20100614-NEWS--0014-NAT-CCI-CN_-- 6/10/2010 8:02 PM Page 1

SMALL BUSINESS Taking the roads less traveled for online

backlash from publishers—the ESPN.com, but across Digital-ad firms I-95s of online advertising—whose a broad range of web- woo marketers by is based on the idea sites and at a lower that an ad is only as effective as the price.” de-emphasizing big reputation of the site it appears on. ContextWeb does not disclose financials, media publishers ContextWeb thrives but Mr. Murray says in new york, there are dozens of revenues grew 20% last BY KIRA BINDRIM fast-growing exchanges and ad net- year and he expects IN CONTEXT: works, and a number of smaller growth of more than ContextWeb CEO Tim lose your eyes.Imag- ones.Ad networks analyze audience 40% for 2010. Murray launched the ine a Toys “R” Us bill- demographics to place ads on tar- Startups like Con- Adsdaq Exchange in board on I-95.Millions geted websites, while exchanges let textWeb draw their 2005. of people see it each advertisers bid on open space in a customer base from two day, but who knows stock-market-like setting. distinct camps: large how many of them have children. websites with ad space C buck ennis Now imagine two billboards on sec- left over from direct ondary roads leading to an elemen- Networks buck sales, and small sites with limited or OPA study found that ads placed on more than doubled its staff to 40 tary school and an amusement park. nonexistent sales staffs. Networks member sites increased brand people this year. Which approach would result in the old system and exchanges typically make mon- awareness by 3.1% versus 0.9% for Zephrin Lasker,CEO of Brook- more sales for Geoffrey the Giraffe? ey based on the number of clicks re- spots on ad networks. lyn-based Pontiflex, says plenty of Once upon a time, online adver- with lower prices, ceived by an ad placed through their At three-year-old AppNexus— advertisers want the human tising was a digital I-95, and adver- data-driven service. which combines multiple networks touch—something or Ya- tisers paid a premium to place ads on “Marketers are increasingly able so that advertisers can bid across a hoo can’t provide. Pontiflex match- the most recognizable channels audience analysis to just pay for the audience they greater number of sites—President es its 800 publishers and 150 adver- with the largest audiences. want to target,” says David Lundell, Michael Rubenstein says there’s tisers for e-mail marketing and Now, an expanding group of vice president of product manage- room for both traditional and net- social-media campaigns, and the small businesses, many based in the ment at Kantar Media, which re- work-based approaches. company also played a role in Barack online-advertising hub of New cently found that networks account Obama’s campaign. The company York,are gaining traction with a dif- for 23% of overall ad impressions. Wake-up call has raised $6.3 million in venture ferent idea: Ads should be sold Manhattan-based ContextWeb, Some premier publishers, in- “this is a wake-up call for pub- capital,and revenues are expected to based not on a website’s brand or the founded in 2000, launched its Ads- cluding Weather.com, have never lishers,” he says.“They need to push hit $15 million this year. size of its audience, but on the type daq Exchange in 2005.The compa- worked with ad networks, while the envelope and do creative things “Advertisers still want a level of audience it attracts. ny now handles more than 5 billion others, like ESPN.com, are moving to be able to attract high rates in to- of service from us,” says Mr. Lasker. Ad networks and ad exchanges monthly impressions—defined as away from them. They argue that day’s environment.” “Sometimes, exchanges try to be have been around for years as units each time a Web page is shown to a advertising with a specific brand is AppNexus is backed by venture so much like stock markets that they of big search engines like Google visitor—and employs more than more effective than targeting a spe- capitalists including Netscape found- give up the fundamental ad experi- and Yahoo. But a group of smaller, 100 people. cific audience. er Marc Andreessen. The company ence.”  innovative companies is now oper- “Say you want to reach a sports “There’s no significant impact, ating in the market, bringing high- audience,” ContextWeb Chief or any impact,really,of running your er levels of service and more cus- Executive Tim Murray says. “Using message on an ad network,” says To sign up for Crain’s new twice-weekly SMALL BUSINESS NEWSLETTER, tomized approaches. As they gain an exchange, you find content Pam Horan,president of the Online go to www.crainsnewyork.com/smallbiz market share, they face a growing that’s comparable to a site like Publishers Association. A recent

14 | Crain’s New York Business | June 14, 2010 20100614-NEWS--0015-NAT-CCI-CN_-- 6/10/2010 6:42 PM Page 1

HEALTH CARE INSIDE LARGEST HOSPITALS in the New York area PAGE 18 “About half the care in the U.S. is paid for by the federal government.” —Dr. Simeon Schwartz, Westmed Medical Group, Page 16 Dowling to the Rescue The North Shore-Long Island Jewish CEO sets his sights on Manhattan

BY GALE SCOTT

times are tough for New York City hospitals. Costs are rising, many patients are losing their health insur- ance, and hospitals are getting pounded by wave after wave of state and federal Medicaid cuts. So it’s hard to fathom why the financially successful North Shore- Long Island Jewish Health System has chosen to take on two ailing hospitals in Manhattan. “Challenges make the juices flow,” says Michael Dowling, chief executive of North Shore-LIJ, which recently agreed to run Lenox Hill Hospital on the Up- per East Side and will open an urgent-care center on or near the Greenwich Village site of the former St. Vin- cent’s Hospital. For Mr. Dowling, entering Manhattan puts his 15-hospital system under a spotlight and of- $4.5B fers the best chance to raise its na- ANNUAL tional profile. He says he has no REVENUES of plans to acquire other Manhattan North Shore-LIJ institutions. But under his aegis, system in 2009 the Long Island system has expe- rienced rapid growth, most of it through mergers and acquisitions, and observers are betting that Mr. Dowling will continue to look for M&A targets and hire talent away from rivals. “Moving into Manhattan shows clearly they want to play with the big boys,” says one Manhattan health care lawyer. Mr. Dowling says only that the organization is GOOD MEDICINE: Michael keeping its options open, focusing on improving its Dowling, North Shore-LIJ’s expansion-minded CEO, is performance. “We’re going to make North Shore-LIJ optimistic about Lenox Hill one of the best systems in the U.S.,” he says. That Hospital’s prospects. “We will means offering the highest quality of care and being fi- invest to make this one very nancially successful. successful,” he says. “When they put out those lists of the nation’s best hospital systems, we don’t routinely make the top 10, just occasionally,”says a system spokesman.“We want to make them all the time.”

catherine gibbons catherine See HOSPITAL FIXER on Page 16

care, including keeping diabetics’ if it saves Medicare money. blood-sugar levels in check, ensur- Dr. Leah McCormack, presi- New Yorkers get ready for ACOs ing that women get regular mam- dent of the Medical Society of the mograms,and monitoring whether State of New York, is leery of the tions plan to become ACOs. Mon- heart patients are taking their med- ACO concept.“It sounds like man- The latest health care organizations draw tefiore has already satisfied certain ications. An ACO receives a bonus See GET READY on Page 16 fans—and critics—of cost-cutting mission requirements, such as employing the majority of physicians who ad- tection and Affordable Care Act mit its patients and adopting the use BY GALE SCOTT signed into law by President Barack of electronic medical records. “We Obama in March, ACOs are in- were an accountable care organiza- new yorkers familiar with tended to reward providers that tion before they came up with the health care acronyms like HMO shift their focus to preventive care term,” says Montefiore’s chief exec- and PPO will soon have a new one and presumably reduce the need for utive, Dr. Steven Safyer. to master: ACO, for accountable expensive procedures. To qualify as The North Shore-Long Island care organization. Essentially, an ACO, an entity must already Jewish Health System (see story these large collectives of doctors provide care to at least 5,000 above) is working with a consulting and hospitals will agree to play a Medicare patients. firm to convert to an ACO. Health greater role in lowering costs and industry professionals and policy- DE FACTO: improving the quality of care for Ahead of the curve makers predict others will follow. Dr. Steven Safyer their Medicare patients. In ex- effective jan. 1, 2012, Montefiore To maintain their ACO status, says Montefiore was change, they may receive more Medical Center in , participating entities must show an ACO before the money from Medicare. Westmed Medical Group in Medicare that they have met term was invented.

Authorized by the Patient Pro- Westchester and other local institu- dozens of specific criteria for good buck ennis

June 14, 2010 | Crain’s New York Business | 15 20100614-NEWS--0016,0017-NAT-CCI-CN_-- 6/10/2010 6:43 PM Page 1

Another Client Who Relies on Hospital fixer sets his Amper Continued from Page 15 Mario Cuomo,rising to become com- WILLIAM CUSICK To understand how an upstart missioner of New York’s Social Ser- collection of hospitals on suburban vices Administration.In 1995,he was EXECUTIVE VP/CFO Long Island has positioned itself as recruited to join Empire Blue Cross St. Mary’s Hospital the savior of a Manhattan institution Blue Shield as a senior vice president, like Lenox Hill,look no further than but a few months later left to work at In the effort to restructure Mr. Dowling, a 60-year-old former what was then a small Long Island St. Mary’s Hospital, it was West Side dockworker from Limer- health care system as chief operating critically important to choose the ick, Ireland.“We had a thatched roof officer. North Shore Health System right accounting and turnaround and a dirt floor, but we loved to read merged with former rival Long Is- professionals. Amper, along with new Shakespeare by candlelight,”he says. land Jewish Medical Center to form senior management, physician leaders His late mother, deaf from the age of North Shore-LIJ in 1997.Mr.Dowl- and the support of our community, 6, offered advice he never forgot: ing’s predecessor inked that deal, but “Don’t ever let your circumstances Mr. Dowling soon saw that merging allowed us to keep our doors open while limit your potential,” he says. He could supercharge growth. In 1997, implementing a plan to help us become came to New York as a 17-year-old North Shore-LIJ had annual rev- the only hospital in New Jersey to exit and found his first job working in the enues of $2.3 billion. By 2009, it had bankruptcy as a standalone and electrical room of a Circle Line ship. grown into a $4.5 billion system. independent hospital. Following a deal, Mr. Dowling Work/study typically distributes pink slips, in- The people at Amper really understood our he got his bachelor’s degree from stalls new leaders and ties managers’ needs and worked as a team with the hospital Ireland’s University College Cork in financial rewards to meeting specif- staff. Their guidance was crucial to 1971,attending part-time to work in ic performance goals. He believes in our continuing success. New York as a construction worker, achieving results with his own team. longshoreman and plumber. “I would never allow consultants Those blue-collar trades also to serve as system executives,”he says. paid his way through Fordham Uni- Mr. Dowling is the chief execu- versity, where he got a master’s de- tive of each North Shore-LIJ insti- gree in social work in 1973.As a stu- tution, and the system has a single dent, he did case work in the New board of trustees. After each acqui- York City school system. sition or merger,the trustees of each In 1983, he went to work for Gov. institution are brought onto the sys- Get ready for ACOs sm Continued from Page 15 will not be under pressure to send pa- “Seeing Beyond the Numbers...” aged care, which turns out to be tients to less-expensive hospitals be- managed cost,” she says. cause it already provides services for Steven Mayer, CPA Partner-in-Charge Dr. McCormack fears that cost- most of the patients in its geograph- 212.682.1600 www.amper.com cutting will take precedence over ic area.Medicare or Medicaid covers quality of care and impede physicians’ the majority of Bronx residents’care, ability to use their best judgment. and Montefiore operates in the advisoryad6x3h.pdf 1 6/9/10 12:33 PM Other critics say that ACOs run black. So if Montefiore gets an en- by groups of doctors could limit con- hanced rate for their treatment, it sumer choice because they will have stands to profit. Furthermore, says a financial incentive to steer patients Dr. Safyer, “the best care is local.” to less-expensive hospitals, rather Patients in other boroughs may than to those that offer the best care. not see it that way, Dr. Safyer says. While in some parts of the country, Different rates people might be happy to join an aco supporter Dr. Simeon ACO run by an eminent hospital like JOIN CRAIN’S Schwartz,president of Westmed,ex- the Cleveland Clinic or the Mayo plains that Medicare pays widely dif- Clinic, there are far more big-name ferent rates for a typical heart-sur- hospitals in Manhattan, making gery procedure such as angioplasty. New Yorkers reluctant to declare ADVISORY PANEL An operation might cost Medicare their loyalty to an ACO and risk los- $10,500 at a top Manhattan academ- ing their freedom of choice. ic center, as opposed to just $6,000 at Doctors also may be hesitant to a smaller Brooklyn hospital. give up their independence, says Although details are not yet Francis Serbaroli, a lawyer who spe- ironed out, patients should still be cializes in health care at Greenberg able to pick their hospitals under the Traurig. Because ACOs work best Looking for readers to share views and opinions. ACO model.“But the physician will when doctors are their employees, push them to choose the cheaper physicians may feel pressured to one, saying that the care is just as shift from private practice. good,” says Dr. Schwartz. Although ACOs would only af- ACOs will also endeavor to fect Medicare payments and recipi- make their facilities more conven- ents, that segment is significant. ient than a big-name one patients “About half the care in the U.S. is have to travel to. “The difference in paid for by the federal government, quality is usually minimal, but the and even more so in New York,”says CRAIN’S NEW YORK BUSINESS academic centers aren’t going to like Dr. Schwartz. Further, private in- Sign up for FREE today. this,” Dr. Schwartz warns. surers traditionally tie their rates to www.crainsnewyork.com/advisory At Montefiore—which is also an those of Medicare and are likely to academic medical center through a want to contract with ACOs and partnership with Albert Einstein adopt a similar system of rewarding College of Medicine—Dr. Safyer doctors for keeping patients healthy. has long supported the ACO con- “The private carriers are watching,” cept. Unlike Westmed, Montefiore Dr. Schwartz says. 

16 | Crain’s New York Business | June 14, 2010 20100614-NEWS--0016,0017-NAT-CCI-CN_-- 6/10/2010 6:44 PM Page 2

REPORT HEALTH CARE TO BUILD A BETTER BUSINESS The 652-bed institution lost more MICHAEL DOWLING molded a small group of suburban Long Island hospitals than $30 million last year and pro- into a $4.5 billion powerhouse. Along the way, North Shore-LIJ’s chief sights on Manhattan jects a $15 million loss this year. On executive learned these management lessons. the bright side, for several years, Lenox Hill has reduced its losses CENTRALIZE OPERATIONS One CEO per system is enough. The same is true for its Mr. Dowling’s “re- through steps that included trim- your procurement, HR and legal departments. LEARNING PROCESS: lentless attention to ming staff while pouring resources North Shore-LIJ’s Michael management” for the into lucrative departments like car- LEARN FROM ALL STAFFERS I meet everyone who works here. I’m always walking Dowling meets with staffers. system’s success. diac care and orthopedic surgery. around the hospitals, talking to people. I get ideas on everything from improving “Mike is brilliant,” The hospital has said it was in turn- the patient-intake process to keeping the floors cleaner. says Dr. Michael around mode when the recession hit. Stocker, former chief DON’T BE AFRAID TO JUDGE A guy dozed off at our first meeting. I told him to executive of Empire Things will pick up work someplace else. Blue Cross Blue fitch ratings analyst Gary Shield, who once re- Sokolow follows Lenox Hill, which KEEP YOUR PROMISES If I say I’ll do it, I do it. cruited him. In his sits in one of Manhattan’s wealthiest USE CONSULTANTS SPARINGLY They should be short-term and used only for executive role, Mr. ZIP codes.He says the crash was par- specialized tasks. Dowling excelled at ticularly devastating for the hospital’s blending disparate plastic surgery business, though that LEARN THE CULTURE FOLLOWING AN ACQUISITION Don’t come in and shake the tem’s sprawling 130-member board departments. “He’s practical but will surely pick up with the economy. crap out of everyone. Take your time. as “a way of keeping our ties to the principled,” Dr. Stocker says. Mr. Dowling is optimistic about communities,” Mr. Dowling says. North Shore-LIJ’s deal to take Lenox Hill’s prospects.“Some hospi- MAKE PERFORMANCE A TEAM EFFORT If one hospital has an underperforming But a smaller, 24-member executive over operations of Lenox Hill Hos- tals take a longer time to turn around department, analogous departments systemwide work to fix it. board makes systemwide decisions. pital represents a gamble that the sys- than others. We will invest to make “Half of our hospitals were losing tem’s clout with vendors and insurers this one very successful,” he says. KNOW THAT THE OLD REGIME USUALLY HAS TO GO You can’t change the stripes money at one time,” Mr. Dowling will help the ailing but prestigious He is less sanguine about the fu- on a zebra. says, “Some were losing as much as hospital negotiate better contract ture of St. Vincent’s Hospital, which —GALE SCOTT $20 million a year and would have terms.The agreement is not a merg- North Shore-LIJ has agreed to main- closed if we hadn’t come along.” er; the hospital continues to exist as tain solely as an urgent-care clinic. In 2008, the average operating its own corporate entity, with North Since the bankrupt hospital’s assets patients who come to the urgent-care Lenox Hill’s future.“Overall, its bal- margin for hospitals on Long Island Shore-LIJ as its corporate parent. are tied up in court, it is not clear center will be taken to Lenox Hill if ance sheet is in decent shape,”he says. was -0.8%,according to the Health- Also, North Shore-LIJ is not taking where that facility will be, but Mr. they need hospitalization. To sweet- Dr. Stocker says he’s seen Mr. care Association of New York State. on the hospital’s long-term debt. Dowling says he agreed to run it “to en the deal, the state Department of Dowling prevail in the toughest sit- North Shore-LIJ’s margin was But the system’s executive board serve the community and fill a need. Health has agreed to give the Long uations. “He can be forceful, but he 1.7%, and it rose to 2.7% in 2009. will struggle with budget decisions, We’ll be lucky if we break even.” Island system more than $9 million usually doesn’t have to be, because Fitch Ratings analyst Jeff Schaub, such as where to invest in upgrades. At the same time, his Lenox Hill to set up the emergency clinic. he’s got charm,” Dr. Stocker says. who follows North Shore-LIJ, cred- And there’s plenty to worry about. venture could profit because some Mr. Sokolow is optimistic about “He turns on the brogue.” 

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June 14, 2010 | Crain’s New York Business | 17 20100614-NEWS--0018-NAT-CCI-CN_-- 6/10/2010 8:02 PM Page 1

REPORT HEALTH CARE

RANGE OF SALARIES, FOCUS OF ACTIVITY New York Area’s Largest Hospitals SALARIES New York-Presbyterian Hospital CEO Herbert Pardes, who Ranked by operating expenses earned $9,827,415 in 2008, was the highest-paid executive on the list. 2009 2008 2009 operating operating 2009 2009 number of 2009 Kings County Hospital Center’s Antonio expenses expenses number of number of ambulatory inpatient D. Martin earned $265,450, the Rank Hospital/Network affiliation Phone/Web site (in millions) (in millions) certified beds1 employees2 care visits3 days4 lowest salary. New York-Presbyterian Hospital (212) 746-5454 $3,139.2 $2,983.3 2,278 18,273 1,815,214 703,994 525 E. 68th St. www.nyp.org HIGHEST-PAID EXECUTIVES 1 New York, NY 10065 New York-Presbyterian Healthcare System at all area hospitals 5 6 7 Executive : Herbert Pardes, M.D., president, chief executive 2008 compensation : $9,827,415 OFFICER/ 2008 CASH Montefiore Medical Center (718) 920-4321 $2,722.0 $2,448.2 1,491 17,041 3,279,449 489,504 DIRECTOR/TRUSTEE COMPENSATION 111 E. 210th St. www.montefiore.org Herbert Pardes, M.D. $9,827,4151 2 Bronx, NY 10467 President, chief executive Independent New York-Presbyterian Hospital Executive5: Steven M. Safyer, M.D., president, chief executive 2008 compensation6: $3,815,4408 2 Donald L. Ashkenase $5,437,045 Memorial Sloan-Kettering Cancer Center (212) 639-2000 $1,771.3 $1,614.8 514 7,071 500,317 140,224 Executive vice president, corporate 1275 York Ave. www.mskcc.org Montefiore Medical Center 3 New York, NY 10065 Robert B. Conaty $5,214,0853 Independent Executive vice president, operations Executive5: Harold Varmus, M.D., president, chief executive 2008 compensation6: $2,649,076 Montefiore Medical Center 9 Mount Sinai Hospital (212) 241-6500 $1,463.0 $1,418.6 1,406 8,455 650,817 381,831 Miguel A. Fuentes Jr. $4,774,182 1 Gustave L. Levy Place www.mountsinai.org President, chief executive 4 New York, NY 10029 Bronx-Lebanon Hospital Center Mount Sinai Health System John R. Gunn $4,232,624 Executive5: Kenneth L. Davis, M.D., president, chief executive, Mount Sinai Medical Center 2008 compensation6: $2,157,334 Executive vice president, board member North Shore University Hospital Memorial Sloan-Kettering Cancer Center (516) 562-0100 $1,461.0 $1,370.0 812 8,773 736,584 304,725 300 Community Drive www.northshorelij.com 1-Includes $6.8 million from an employee retirement plan that will be 5 Manhasset, NY 11030 distributed when Dr. Pardes retires in 2011. 2-Includes a $4,040,938 lump- North Shore-Long Island Jewish Health System sum long-term nonrecurring retirement benefit. 3-Includes a $3,826,443 5 6 10 lump-sum long-term nonrecurring retirement benefit. Executive : Michael J. Dowling, president, chief executive, North Shore-Long Island Jewish Health System 2008 compensation : $1,689,309 Beth Israel Medical Center (212) 420-2000 $1,292.8 $1,216.9 1,111 7,463 506,121 284,577 BEDS The 15 largest hospitals at East 16th Street www.chpnyc.org 6 New York, NY 10003 averaged 994 certified beds; New York- Continuum Health Partners Inc. Presbyterian has the most, with 2,278. Executive5: Stanley Brezenoff, president, chief executive, Continuum Health Partners Inc. 2008 compensation6: $1,668,45811 NYU Langone Medical Center 12 (212) 263-7300 $1,262.7 $1,205.5 1,069 6,931 53,219 220,168 LOCATION New York City is the 550 First Ave. www.nyumc.org center of area hospital activity, with 7 New York, NY 10016 Independent two-thirds of the top 15 hospitals 5 6 located within city limits. Executive : Robert I. Grossman, M.D., chief executive, dean 2008 compensation : $701,491 Hackensack University Medical Center (201) 996-2000 $1,192.0 $1,116.7 775 8,400 2,767,793 244,464 30 Prospect Ave. www.humc.com 8 Hackensack, NJ 07601 Independent Executive5 John P.Ferguson, president, chief executive13 2008 compensation6: $2,178,792 Long Island Jewish Medical Center (516) 470-7000 $1,182.0 $1,121.0 880 7,960 648,847 285,320 270-05 76th Ave. www.northshorelij.com 9 New Hyde Park, NY 11040 North Shore-Long Island Jewish Health System Executive5: Michael J. Dowling president, chief executive, North Shore-Long Island Jewish Health System 2008 compensation6:—10 St. Luke’s-Roosevelt Hospital Center (212) 523-4000 $1,126.7 $1,039.4 1,028 5,614 614,931 246,327 1111 Amsterdam Ave. www.chpnyc.org 10 New York, NY 10025 Continuum Health Partners Inc. Executive5: Stanley Brezenoff, president, chief executive, Continuum Health Partners Inc. 2008 compensation6:—11 Maimonides Medical Center (718) 283-6000 $919.6 $915.6 711 5,531 363,473 239,240 4802 10th Ave. www.maimonidesmed.org 11 Brooklyn, NY 11219 Independent Executive5: Pamela Brier, president, chief executive 2008 compensation6: $941,767 Westchester Medical Center (914) 493-7000 $863.9 $757.8 635 3,892 150,575 196,071 100 Woods Road www.worldclassmedicine.com 12 Valhalla, NY 10595 Independent Executive5: Michael D. Israel, president, chief executive 2008 compensation6: n/d14 Winthrop-University Hospital (516) 663-0333 $789.5 $718.7 591 6,100 248,604 172,327 259 First St. www.winthrop.org 13 Mineola, NY 11501 Long Island Health Network Executive5: Daniel P.Walsh, president, chief executive15 2008 compensation6: $774,899 Kings County Hospital Center 16 (718) 245-3131 $765.5 $663.8 700 6,074 736,958 185,662 451 Clarkson Ave. www.nyc.gov/hhc 14 Brooklyn, NY 11203 NYC Health and Hospitals Corp. Executive5: Antonio D. Martin , senior vice president, Central Brooklyn; executive director, Kings County Hospital Center 2008 compensation6: $265,45017 Center 16 (212) 562-4141 $745.9 $680.8 912 5,076 650,972 231,836 462 First Ave. www.nyc.gov/hhc 15 New York, NY 10016 NYC Health and Hospitals Corp. Executive5: Lynda D. Curtis, executive director, Bellevue Hospital Center; senior vice president, South Manhattan Health Network 2008 compensation6: $278,72217 New York area includes NYC and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Crain’s uses staff research, extensive surveys and the most cur- rent references available to produce its lists, but there is no guarantee that these listings are complete. To qualify for this list, a hospital must be located in the NY area. St. Vincent’s Hospital, while in operation in 2009, closed in April 2010 and is not included. Hospitals are ranked by unrounded total operating expenses of separately incorporated facilities, as identified by Medicare number. Information was supplied by the hospitals unless otherwise noted. Operating expenses are for calendar year unless otherwise noted. n/d Not disclosed. 1-Hospital beds only, excluding nursery; as of Dec. 31. 2-Full-time and full-time-equivalent only, including house staff; as of Dec. 31. 3-Includes emergency room, outpatient, home care, etc.; as of Dec. 31. 4-Excludes newborns; as of Dec. 31. 5-Chief executive or highest-paid official in 2008. 6-Cash compensation figures were obtained from each hospital and verified against each hospital’s Form 990 for 2008—the latest available—unless otherwise noted. Figure includes base compensation, bonus and incentive compensation, and other reportable compensation from the organization and related organizations. 7-Includes $6.8 million from an employee retirement plan that will be distributed when Dr. Pardes retires in 2011. 8-Includes a $2,103,080 lump-sum long-term nonrecurring retirement benefit. 9-Excludes newborns. 10-All North Shore-LIJ health entities contribute to compensation. 11-All Continuum hospitals contribute to salary. 12-Fiscal year ends Aug. 31. 13-Mr. Ferguson retired on July 1, 2009. In November 2009, Robert C. Garrett was named president and chief executive. 14-Hospital did not disclose compensation. Hospital is a public benefit corporation and does not file a Form 990. 15-On March 1, 2009, John F. Collins became president and chief executive. 16-Fiscal year ends June 30. 17-Compensation is for fiscal year ended June 2009. research: Denise Southwood, Maia Blume, Selena Shen ➚➚ PURCHASE THIS LIST AND ALL OF CRAIN’S BUSINESS LISTS @ WWW.CRAINSNEWYORK.COM/LISTS 18 | Crain’s New York Business | June 14, 2010 Project2:fpsmallbiz_freemoney.ai template.qxd 6/10/106/10/10 9:56:47 12:33 AM PM Page 1

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EXECUTIVE REAL ESTATE PUBLIC & LEGAL NOTICES RECRUITER AUCTION REQUESTS FOR PROPOSALS POSITION AVAILABLE AVP/Research Assc (AllianceBernstein L.P. - NY, NY) Design, dvlp, & implement financial research strats for companies & industries under coverage in support of investment mgmt activities. Reqs MBA w/ a concentration in Finance, Accounting, Economics or rel. quant field & 3 yrs exp analyzing corp finance issues & performing rel. research to support investment banking activities. Must have exp. in each of the PUBLIC & following: util. MS Excel, Factset & Bloomberg in support of data mgmt & LEGAL NOTICES analysis; util. MS Excel to create histori- Name of LLC: FK Global Retail LLC. cal & forecast Income Statements, Auth. filed with NY Dept. of State: Balance Sheets & Statement of Cash 3/8/10. Office loc.: NY Co. LLC Flows in support of investment analysis; formed in DE: 1/21/10. NY Sec. of util. relative multiple, discounted cash State designated agent of LLC upon flow, & sum of the parts valuation tech- whom process against it may be niques in support of investment analy- served and shall mail process to: c/o sis; util. statistical analysis techniques, Business Filings Inc., 187 Wolf Rd., incl. regression analysis, in support of Ste. 101, Albany, NY 12205, regd. analysis of mrkt performance of publicly agt. upon whom process may be traded securities; presenting financial & served. DE addr. of LLC: 1201 quant research & analyses to sr mgmt; Orange St., Ste. 600, Wilmington, DE analyzing corp financial statements & OFFICE SPACE 19801. Arts. of Org. filed with DE pubs prepared under US GAAP & IFRS Sec. of State, 401 Federal St., Dover, reporting standards incl. annual DE 19901. Purpose: any lawful act. reports, interim & quarterly financials, THREE WINDOWED PRIVATE prospectus & proxy statements; &, inter- OFFICES available in Boutique CPA Notice of Formation of Deer Stags viewing mgmt teams & other industry firm tower suite, located near Grand LLC. Arts. of Org. filed with Secy. of experts in support of investment Central. Access to kitchen and confer- State of NY (SSNY) on 5/7/10. research. Exp. may have been gained ence room with exposure. Office location: NY Co. SSNY desig- nated as agent of LLC upon whom prior to completion of Master’s deg. A reception desk and other admin space FORECLOSURE Resumes: J. Johnson, AllianceBernstein process against it may be served. are also available. The offices can be rented SSNY shall mail process to: Hartman L.P., 1345 Avenue of the Americas, New individually or collectively. Although not York, NY 10105. Ref: NEWVLU & Craven LLP, c/o Neal Dorman, 488 required, tenants in synergetic profes- Madison Ave., NY, NY 10022. sions will be considered as well. Purpose: any lawful activities. Call 212-953-5550 Notice of Formation of Bedford TELECOMMUNICATIONS Grove, LLC. Articles of Organization filed with the Secretary of State of NYC'S MOTOROLA OFFICE SPACE NY (SSNY) on 04/20/2010. Office MOTOTRBO SPECIALISTS WESTCHESTER Location: New York County. SSNY has been designated as an agent OFFICE /PROFESSIONAL SPACE upon whom process against it may OFFICES/WESTCHESTER be served. The Post Office address RYE BROOK- 800 WESTCHESTER AVE. to which the SSNY shall mail a copy 2 fully furnished offices in law suite of any process against the LLC w/secy station. One Windowed; reception, served upon him is C/O the LLC fax, telephone, internet, photocopy, Bedford Grove, 2109 Broadway, library, 2 conf rm, indoor parking. #775, New York, NY 10023. Purpose Call Efraim (914)696-5555 of LLC: to engage in any lawful act or activity. Street address of Principal Business location is: 2109 Broadway, #775, New York , NY 10023. PUBLIC & Notice of formation of Onward Earthling LLC. Arts of Org. filed with LEGAL NOTICES Secy. of State of N.Y. (SSNY) on 1/25/10. Office location: New York Notice of Formation of VMV US County. SSNY designated as agent STORE 1 LLC. Arts. of Org. filed with of LLC upon whom process against 33 East 33rd Street Secy. of State of NY (SSNY) on it may be served. SSNY shall mail New York, NY 10016 05/13/10. Office location: NY County. process to: 121 Macdougal Street, 212-532-7400 Princ. office of LLC: c/o VMV Group, No. 13, New York, NY 10012. www.metrocomradio.com Attn: Cristina Constance V. Rowell, Purpose: any lawful activity. 16 W. 16th St., NY, NY 10011. SSNY Notice of Formation of MENS REA designated as agent of LLC upon LLC. Arts. of Org. filed with Secy. of whom process against it may be State of NY (SSNY) on 05/11/10. served. SSNY shall mail process to Office location: NY County. Princ. PUBLIC & the LLC at the addr. of its princ. office of LLC: 40 Riverside Dr., Unit office. Purpose: Any lawful activity. 4, NY, NY 10023. SSNY designated LEGAL NOTICES as agent of LLC upon whom Notice of Formation of DELAFIELD process against it may be served. ART CONSULTANTS, LLC. Arts. of NOTICE OF FORMATION of A Book SSNY shall mail process to the LLC Org. filed with Secy. of State of NY Apart LLC. Arts of Org filed with the at the addr. of its princ. office. (SSNY) on 05/06/10. Office location: Secy of State of New York (SSNY) on Purpose: Any lawful activity. 4/29/10. Office location: NY County. NY County. Princ. office of LLC: SSNY designated as an agent upon 159 W. 53rd St., #19F, NY, NY 10019. Notice of Qualification of 33 CANAL Name of For. LLC: SuttonBrook Name of For. LP: Blue Square Small whom process may be served and SSNY designated as agent of LLC STREET LLC. Authority filed with Secy. Eureka Fund GP LLC. App. for Auth. Cap Value Fund LP. Appl. for Auth. shall mail a copy of any process to upon whom process against it may of State of NY (SSNY) on 05/13/10. filed NY Dept. of State: 4/21/2010. filed with Sec. of State of NY: 2/6/09. the principal business address: 333 be served. SSNY shall mail process Office location: NY County. LLC Jurisd. and date of org.: DE 4/19/10. Jurisd. and date of org.: DE 2/5/09. E. 34 St., #8D, NY NY 10016. to the LLC, Attn: Kristin Dunlap at formed in Delaware (DE) on 04/26/10. Cty off. loc.: NY Cty. Princ. bus. loc.: NY State off. loc.: New York Cty. Purpose: any lawful act. the princ. office of the LLC. Princ. office of LLC: c/o Naomi 598 Madison Ave., 6th Fl., NY, NY Sec. of State designated as agent Purpose: Any lawful activity. Blumenthal, Manager, 125 E. 17th 10022. Sec. of State designated as upon whom process against it may Notice of Formation of 166 Suffolk St., NY, NY 10003. SSNY designated agent of foreign LLC upon whom be served. Sec. of State shall mail Street LLC. Arts. of Org. filed with Notice of Formation of Avenue of the as agent of LLC upon whom process process against it may be served. copy of process to: c/o Blue Square NY Dept. of State on 5/27/10. Office Americas 1707, LLC, a limited liability against it may be served. SSNY shall The Sec. of State shall mail copy of Partners LLC, 200 E. 94th St., Ste. location: NY County. Princ. bus. addr.: company. Art of Org filed with the mail process to the LLC at the addr. process to: 598 Madison Ave., 6th 2517, NY, NY 10128. Addr. of LP in 825 3rd Ave., 37th Fl., NY, NY 10022. Sec of State of New York (SSNY) on of its princ. office. DE addr. of LLC: Fl., NY, NY 10022. Addr. of foreign DE is: c/o National Corporate Sec. of State designated as agent of 3/2/10. Office located in New York c/o Corporation Service Co., 2711 LLC in DE is: Corp. Service Research, Ltd., 615 South DuPont LLC upon whom process against it County. SSNY has been designated Centerville Rd., Ste. 400, Wilmington, Company, 2711 Centerville Rd., Ste. Hwy., Dover, DE 19901. Name/addr. may be served and shall mail process for service of process. SSNY shall DE 19808. Arts. of Org. filed with 400, Wilmington, DE 19808. Auth. of GP avail. from Sec. of State. to: c/o CT Corporation System, 111 mail copy of any process to the LLC Secy. of State - DE, Div. of Corps., officer in DE where Cert. of Form. Authorized office in DE where Cert. 8th Ave., NY, NY 10011, regd. agent c/o James E. Bishop, 902 Clint Moore John G. Townsend Bldg., 401 filed: DE Sec. of State, Townsend of LP is filed is: DE Sec. of State, upon whom process may be served. Road, Suite 220, Boca Raton, Florida Federal St., Dover, DE 19901. Bldg., Dover, DE 19901. Purpose: 401 Federal St., Dover, DE 19901. Purpose: any lawful activity. 33487. Purpose: any lawful purpose. Purpose: Any lawful activity. any lawful activity. Purpose: any lawful activity.

20 | Crain’s New York Business | June 14, 2010 nb24p20-21cl.qxp 6/10/10 2:48 PM Page 21

PUBLIC & LEGAL NOTICES

Notice of Qualification of FULTON Notice of Formation of WELL BUILT ONE SOUTH Notice of Qualification of PANDEMIC Notice of Qualification of ALCLEAR, OWNER LLC amended to FULTON ENTERPRISES LLC. Arts. of Org. CRETERIUM, LLC a domestic MEDIA, LLC. Authority filed with Secy. LLC. Authority filed with Secy. of LESSEE LLC. Authority filed with filed with Secy. of State of NY Limited Liability Company (LLC) filed of State of NY (SSNY) on 05/18/10. State of NY (SSNY) on 05/05/10. Secy. of State of NY (SSNY) on (SSNY) on 04/29/10. Office location: with the Sec of State of NY (SSNY) Office location: NY County. LLC Office location: NY County. LLC 4/14/10. Office location: NY County. NY County. Princ. office of LLC: on 9/8/2006. NY office Location: New formed in Delaware (DE) on 05/15/09. formed in Delaware (DE) on LLC formed in Delaware (DE) on Attn: Mitchell Kidd, 61 Irving Pl., Apt. York County. SSNY is designated as Princ. office of LLC: 240 Centre St., 01/21/10. Princ. office of LLC: 595 4/13/10. SSNY designated as agent 5C, NY, NY 10003. SSNY designated agent upon whom process against NY, NY 10013. SSNY designated as Madison Ave., 39th Fl., NY, NY of LLC upon whom process against as agent of LLC upon whom the LLC may be served. SSNY shall agent of LLC upon whom process 10022. SSNY designated as agent of it may be served. SSNY shall mail process against it may be served. mail a copy of any process against against it may be served. SSNY shall LLC upon whom process against it process to: c/o Regi Corp., 15 W. SSNY shall mail process to the LLC the LLC served upon him/her to The mail process to c/o Corporation may be served. SSNY shall mail 34th St., 8th Fl., NY, NY 10001. DE at the addr. of its princ. office. LLC, Greener Cohen LLP, 444 Service Co., 80 State St., Albany, NY process to c/o Corporation Service address of LLC: United Corporate Purpose: Any lawful activity. Madison Ave. Ste. 805, NY, NY 12207-2543. DE addr. of LLC: 160 Co. (CSC), 80 State St., Albany, NY Services, Inc., 874 Walker Rd., Ste. 10022. General Purpose Greentree Dr., Ste. 101, Dover, DE 12207-2543. DE addr. of LLC: c/o C, Dover, DE 19904. Arts. of Org. Notice of Formation of LLC. Bend 19904. Arts. of Org. filed with Secy. CSC, 2711 Centerville Rd., Ste. 400, filed with DE Secy. of State, 401 Oil, LLC (LLC) filed Arts. of Org. with Notice of Formation of STERN of State, Div. of Corps., 401 Federal Wilmington, DE 19808. Arts. of Org. Federal St., Ste. 4, Dover, DE 19901. Secy. of State of NY (SSNY) on MARCELLUS HOLDINGS, LLC. St., Ste. 4, Dover, DE 19901. filed with Secy. of State of the State Purpose: any lawful activity. 4/21/2010. Office location: New York Arts. of Org. filed with Secy. of State Purpose: Any lawful activity. of DE, 401 Federal St., Dover, DE County. SSNY designated as agent of NY (SSNY) on 05/06/10. Office 19901. Purpose: Any lawful activity. Notice of Qualification of Hylas of the LLC upon whom process may location: NY County. Princ. office of Notice of Qualification of Kairon Management, LLC, filed under the be served and SSNY shall mail LLC: 667 Madison Ave., 24th Fl., Capital, LLC, App. for Auth. filed Notice of Qualification of MREPGlobal4, original name Hylas Capital process to c/o Gerald F. Stack, Esq., NY, NY 10021. SSNY designated as Sec’y of State (SSNY) 4/7/10. Office LLC, Authority filed Sec’y of State Management, LLC, Authority filed Hiscock & Barclay, LLP, One Park agent of LLC upon whom process location: NY County. LLC org. in DE (SSNY) 2/1/10. Office loc.: NY County. Sec’y of State (SSNY) 3/22/10. Office Place, 300 South State Street, against it may be served. SSNY 4/6/10. SSNY designated as agent of LLC org. in DE 1/28/10. SSNY desig. loc.: NY County. LLC org. in DE Syracuse, NY 13202-2078. Purpose: shall mail process to Timothy P. LLC upon whom process against it as agent of LLC upon whom process 11/19/09. SSNY desig. as agent of any business permitted under law. Terry at the princ. office of the LLC. may be served. SSNY shall mail against it may be served. SSNY shall LLC upon whom process against it Purpose: Any lawful activity. copy of process to Attn: Avinash mail copy of proc. to Attn: Sarah may be served. SSNY shall mail copy Name of For. LLC: LEVEL RADAR Sarma, 111 Broadway, 10th Fl., NY, Withers, 135 E. 57th St., 16th Fl., NY, of proc. to 623 Fifth Ave., 25th Fl., HOLDING, L.L.C. App. for Auth. filed Notice of Formation of GOTHAM NY 10006. DE office addr.: CSC, NY 10022. DE office addr.: CSC, NY, NY 10022. DE office addr.: CSC, NY Dept. of State: 4/2/2010. Jurisd. ONE, LLC. Arts. of Org. filed with 2711 Centerville Rd., Wilmington, DE 2711 Centerville Rd., Wilmington, DE 2711 Centerville Rd., Wilmington, DE and date of org.: DE 3/19/10. Cty off. Secy. of State of NY (SSNY) on 19808. Cert. of Form. on file: SSDE, 19808. Cert. of Form. on file: SSDE, 19808. Cert. of Form. on file: SSDE, loc.: NY Cty. Sec. of State designated 05/03/10. Office location: NY County. Townsend Bldg., Dover, DE 19901. Townsend Bldg., Dover, DE 19901. Townsend Bldg., Dover, DE 19901. as agent of foreign LLC upon whom Princ. office of LLC: c/o Guido Purpose: any lawful activities. Purp.: any lawful activities. Purp.: any lawful activities. process against it may be served. Pompilj, Vivaldi Real Estate, Ltd., 236 The Sec. of State shall mail copy of E. 78th St., NY, NY 10075. SSNY Notice of Formation of LN2 CREAM- Notice of Formation of SYAN ADVI- Name of For. LLC: SPCP GROUP IV, process to: Level Global, L.L.C., 888 designated as agent of LLC upon ERY CAFE, LLC, a domestic Limited SORS, LLC, a domestic LLC. Arts. LLC. App. for Auth. filed NY Dept. of 7th Ave., 27th Fl., NY, NY 10019. whom process against it may be Liabiltiy Company. Arts of Org filed of Org. filed with the SSNY on State: 5/18/10. Jurisd. and date of Addr. of foreign LLC in DE is: 2711 served. SSNY shall mail process to with Secretary of State of NY on 01/18/2002, name changed to read: org.: DE 7/14/09. Cty off. loc.: NY Centerville Rd., Ste. 400, Wilmington, Corporation Service Co., 80 State 4/22/2010. Office location: Nassau EAST WIND ADVISORS, LLC on Cty. Sec. of State designated as DE 19808. Auth. officer in DE where St., Albany, NY 12207-2543. County. The street address is: 20 01/29/2002. Office location: NY agent of foreign LLC upon whom Cert. of Form. filed: DE Sec. of State, Purpose: Any lawful activity. Birchwood Park Drive, Syosset, NY County. SSNY has been designated process against it may be served. Duke & York St., Dover, DE 19901. 11791. SSNY has been designated as agent upon whom process The Sec. of State shall mail copy of Purpose: any lawful activity. NOTICE OF FORMATION of David C. as agent of the LLC upon whom against the LLC may be served. process to: c/o The LLC, Two Prince LLC. Arts of Org filed with the process against it may be served. SSNY shall mail a copy of process Greenwich Plaza, Greenwich, CT NOTICE OF FORMATION of VELVET- Secy of State of NY (SSNY) on SSNY shall mail process served to to: Joshua Schwartz, 215 W. 98th 06830. Addr. of foreign LLC in DE is: THOMAS, LLC. Arts of Org filed with 05/04/10. Office location: NY County. the LLC at street address. Purpose: St., Apt 4A, NY, NY 10025. 615 S. DuPont Hwy., Dover, DE the Secy of State of New York (SSNY) SSNY designated as agent upon whom any lawful act of activity. Purpose: Any Lawful Purpose. 19901. Auth. officer in DE where on 3/17/10. Office location: NY process may be served and shall mail Notice of Formation of CROCO LLC. Notice of Qualification of PCA Cert. of Form. filed: DE Sec. of State, County. SSNY has been designated a copy of any process against the Articles of Organization filed with Secy. Advisors, LLLP. Authority filed with Townsend Bldg., Dover, DE 19901. as an agent upon whom process may LLC to its principal business address: of State of NY (SSNY) on 03/26/10. Secy. of State of NY (SSNY) on Purpose: any lawful activity. be served and shall mail a copy of 320 East 57th St. #4F, NY NY 10022. Office location: NY Co. SSNY desig- 4/29/10. Office location: NY County. any process to the principal business Purpose: to engage in any lawful act. NOTICE OF FORMATION OF LIMIT- address: 314 W 117 St., 6G, NY, NY nated as agent of LLC upon whom LLC formed in North Carolina (NC) ED LIABILITY COMPANY. NAME: 10026. Purpose: any lawful act. process against it may be served. on 3/6/08. SSNY designated as Local Connections Psychotherapy SSNY shall mail process to the LLC agent of LLC upon whom process OM-AH-HUM REALTY LLC. Articles LCSW, PLLC Date of filing of the Notice of Formation of Lindsay Smith c/o Robinson Brog Leinwand Greene against it may be served. SSNY shall of Organization were filed with the Articles of Organization: April 8, Architect PLLC, a professional serv- Genovese & Gluck, PC, Attn: Leonard mail process to the NC address of Secretary of State of New York 2010. County within which the office ice limited liability company (PLLC). B. Nathanson, Esq., 875 Third Ave, LLC: 5915 Farrington Road, Ste. (SSNY) on 03/31/10. The latest date is located: New York The Secretary Arts. of Org. filed with Secy. of State 9th Fl., New York, NY 10022. 202, Chapel Hill, NC 27517. Arts. of of dissolution is 12/31/2060. Office of State is designated as agent of of NY (SSNY) on 4/29/10. Office Purpose: any lawful act or activity. Org. filed with NC Secy. of State, location: New York County. SSNY the limited liability company upon location: NY County. SSNY designat- P.O. Box 29622, Raleigh, NC 27626. has been designated as agent of the whom process against it may be ed as agent of PLLC upon whom Notice of Formation of CITYWIDE Purpose: any lawful activity. LLC upon whom process against it served. The street address of the process against it may be served. ASSOCIATES LIMITED LIABILITY may be served. SSNY shall mail a office: c/o Paul Scherer & Company, SSNY shall mail process to: Menaker COMPANY, a domestic LLC. Arts. of Notice of formation of EAST SIDE copy of process to the LLC, c/o 1440 Broadway, New York, NY and Herrmann LLP, 10 E. 40th St., Org. filed with the SSNY on NOISE & SPIRITS LLC. Arts. of Org. Eastport, 34 West 33rd Street, 6th 10018. Date of dissolution: NY, NY 10016, Attn: Robert F. 04/02/2010. Office location: NY filed with the Sect’y of State of NY Floor, New York, New York 10001. Perpetual Purpose of Business: Herrmann, Esq. Purpose: practice County. SSNY has been designated (SSNY) on 4/5/10. Office location NY Purpose: For any lawful purpose. Licensed Clinical Social Work the profession of architecture. as agent upon whom process against County. The street address: 154 Grand Notice of Qualification of MQ Absolute the LLC may be served. SSNY shall St. NY, NY 10013. SSNY designated Return Strategies - Asia LLC. Notice of Qualification of FRC Advisors Manhattan Dental Health PLLC. mail a copy of process to: 100 as agent upon whom process may be Authority filed with NY Dept. of State LLC. Authority filed with Secy. of State Notice of the formation of the above Lafayette St. Ste 301, NY, NY 10013. served and shall mail a copy of any on 5/21/10. Office location: NY of NY (SSNY) on 5/21/10. Office location: named Professional Limited Liability Purpose: Any Lawful Purpose. process to PO Box 3716, Mt. Vernon, County. LLC formed in DE on 4/5/10. NY County. LLC formed in Delaware Company (“PLLC”) Articles of NY 10553. Purpose: any lawful act. NY Sec. of State designated as (DE) on 5/20/10. SSNY designated as Organization filed with the Department Notice of formation of Gordon agent of LLC upon whom process agent of LLC upon whom process of State of NY on 3/5/2010. Office Strategy Group LLC. Art. Of Org. filed Notice of Formation of NYC DENTAL against it may be served and shall against it may be served. SSNY shall Location: County of New York. The with Secy. of State of NY (SSNY) on HOLDINGS, LLC. Arts. of Org. filed mail process to the principal busi- mail process to: c/o Katten Muchin street address is: 29 W. 57th St., Ste. 5/20/10. Office Location: New York with Secy. of State of NY (SSNY) on ness addr.: 125 W. 55th St., 10th Fl., Rosenman LLP, 575 Madison Ave., 1200, NY, NY 10019. The Secretary of County. SSNY designated as agent 05/11/10. Office location: NY County. NY, NY 10019. DE addr. of LLC: c/o NY, NY 10022, Attn: Robert Grundstein. State of NY (“SSNY”) has been desig- of the LLC upon whom process SSNY designated as agent of LLC The Corporation Trust Co., 1209 DE address of LLC: c/o United nated as agent of the PLLC upon against it may be served. SSNY shall upon whom process against it may Orange St., Wilmington, DE 19801. Corporate Services, Inc., 874 Walker whom process against it may be served. mail a copy of any process to: c/o be served. SSNY shall mail process Arts. of Org. filed with DE Sec. of Road, Ste. C, Dover, DE 19904. Arts. SSNY shall mail a copy of any such the LLC, 14 Horatio Street, Apt. 17D, to Corporation Service Co., 80 State State, P.O. Box 898, Dover, DE of Org. filed with DE Secy. of State, process served to: The LLC, 29 W. 57th New York, NY 10014, attn: Tracey St., Albany, NY 12207-2543. 19903. Purpose: any lawful activity. 401 Federal St., Dover, DE 19901. St., Ste. 1200, NY, NY 10019. Purpose: Gordon. Purpose: To engage in any Purpose: Any lawful activity. Purpose: any lawful activity. To practice the profession of Dentistry. lawful act or activity. Notice of Qualification of 54-56 IRVING Notice of Qualification of Ivanka PLACE LLC. Authority filed with Secy. Notice of Qualification of AG-Metropolitan Notice of Qualification of CME Group Notice of Qualification of Chilton Trump Marks II LLC. Authority filed of State of NY (SSNY) on 05/13/10. 711 Fee Purchaser, L.L.C. Authority Index Holdings LLC. Authority filed Pan-Asia Access LLC. Authority filed with Secy. of State of NY (SSNY) on Office location: NY County. LLC filed with NY Dept. of State on 5/5/10. with NY Dept. of State on 5/13/10. with NY Dept. of State on 6/3/10. 11/10/2009. Office location: New formed in Delaware (DE) on 04/26/10. Office location: NY County. Princ. Office location: NY County. Princ. Office location: NY County. Princ. bus. York County. LLC formed in Princ. office of LLC: c/o Naomi bus. addr.: 245 Park Ave., 26th Fl., bus. addr.: 20 S. Wacker Dr., addr.: 4 World Financial Ctr., 250 Delaware (DE) on 11/04/2009. SSNY Blumenthal, Manager, 125 E. 17th NY, NY 10167. LLC formed in DE on Chicago, IL 60606. LLC formed in DE Vesey St., 6th Fl., NY, NY 10080. LLC designated as agent of LLC upon St., NY, NY 10003. SSNY designated 5/4/10. NY Sec. of State designated on 1/29/10. NY Sec. of State desig- formed in DE on 5/25/10. NY Sec. of whom process against it may be as agent of LLC upon whom process as agent of LLC upon whom process nated as agent of LLC upon whom State designated agent of LLC upon served. SSNY shall mail process to: against it may be served. SSNY shall against it may be served and shall process against it may be served whom process against it may be c/o National Register Agents, Inc., mail process to the LLC at the addr. mail process to: c/o CT Corporation and shall mail process to: c/o CT served and shall mail process to: CT 875 Avenue of the Americas, Ste. of its princ. office. DE addr. of LLC: System, 111 8th Ave., NY, NY 10011, Corporation System, 111 8th Ave., Corporation System, 111 8th Ave., NY, 501, New York, NY 10001. Address c/o Corporation Service Co., 2711 regd. agent upon whom process may NY, NY 10011, regd. agent upon NY 10011, regd. agent upon whom required to be maintained in home Centerville Rd., Ste. 400, Wilmington, be served. DE addr. of LLC: The whom process may be served. DE process may be served. DE addr. of jurisdiction: 160 Greentree Drive, Ste DE 19808. Arts. of Org. filed with Corporation Trust Co., 1209 Orange addr. of LLC: 1209 Orange St., LLC: The Corporation Trust Co., 1209 101, Dover, DE 19904. Arts. of Org. Secy. of State - DE, Div. of Corps., St., Wilmington, DE 19801. Arts. of Wilmington, DE 19801. Arts. of Org. Orange St., Wilmington, DE 19801. filed with Secretary of State of John G. Townsend Bldg., 401 Org. filed with DE Sec. of State, 401 filed with DE Sec. of State, 401 Arts. of Org. filed with DE Sec. of Delaware Jeffrey W. Bukkock, 401 Federal St., Dover, DE 19901. Federal St., Dover, DE 19901. Federal St., Dover, DE 19901. State, P.O. Box 898, Dover, DE Federal Street, Dover, DE 19901. Purpose: Any lawful activity. Purpose: any lawful activity. Purpose: any lawful activity. 19903. Purpose: any lawful activity. Purpose: any lawful activities.

June 14, 2010 | Crain’s New York Business | 21 20100614-NEWS--0022-NAT-CCI-CN_-- 6/11/2010 11:56 AM Page 1

FOR THE RECORD

crainsnewyork.com/submitadeal. Deals are shareholders. Listings are in order of options on 138,749 shares of common listed in order of square footage. transaction value.The information was stock at prices ranging from $2.82 to ABOUT THIS SECTION obtained from Thomson Reuters. $13.27 on May 24, in a transaction OFFICE FOR THE RECORD is a weekly listing of information from the public record that worth $950,599. On the same day, she G Noven Pharmaceuticals Inc. signed a G International Business Machines Corp. sold 188,749 shares at prices ranging can help businesspeople in the New York area find opportunities, potential 10-year, 10-month lease for 25,346 (IBM) from $21.11 to $21.83 in a transaction new clients and updates on competitors. square feet at the Empire State Building, Samuel J. Palmisano, chairman, worth $4,068,356. She now directly To ask questions or get more information on this section, contact Denise the 102-story, 2.8 million-square-foot president and chief executive, exercised holds 471,976 shares. Southwood at [email protected]. tower run by W&H Properties. The options on 100,000 shares of common firm will occupy the entire 37th floor. stock at $120.12 on May 28, in a G Time Warner Cable (TWC) Gary Youm, James Quinn and Nina transaction worth $12,012,000. On the Robert D. Marcus, senior executive vice Marroccoli of Jones Lang LaSalle same day, he sold 97,750 shares at prices president and chief financial officer, represented the tenant in the ranging from $125.01 to $125.80 in a exercised options on 28,504 shares of BANKRUPTCIES a.m. on July 8 for the reconstruction of transaction, while William Cohen, Ryan transaction worth $12,268,756. He now common stock at $23.48 on May 27, in a portions of the Bartow-Pell Mansion Kass and Julie Christiano of Newmark directly holds 377,622 shares. transaction worth $669,274. On the The following listings are selected from the Museum in the Bronx. A prebid meeting Knight Frank represented the landlord. same day, he sold 28,504 shares at $54.21 most recent available filings by companies is scheduled for 11 a.m. on June 16 at the The asking rent was $49 per square foot. G Loral Space & Communications Inc. in a transaction worth $1,545,242. He seeking bankruptcy protection in the site. Contact Juan Alban at (LORL) now directly holds 6,557 shares. Southern and Eastern Districts of New (718) 760-6771 or [email protected] G The Home Insurance Co. signed a Michael B. Targoff, president, vice York. Information was obtained from U.S. for more information. 15-year, 23,750-square-foot lease at 61 chairman and chief executive, exercised G MasterCard Worldwide (MA) Bankruptcy Court records available on Broadway, a 33-story, 750,000-square- options on 300,000 shares of common Chris A. McWilton, president of U.S. Public Access to Court Electronic Records. G Housing Preservation and Development foot office tower owned by Broad stock at $26.92 on May 27, in a markets, exercised options on 5,769 Listings are in alphabetical order. Seeks competitive sealed bids by 10 a.m. Street Development. The firm will transaction worth $8,074,500. shares of common stock at $39.00 on on June 22 for stucco work at 1558 occupy the entire sixth floor. Andrew May 25, in a transaction worth $224,991. G Anchor Tank Lines Corp. Bryant Ave. in the Bronx. A mandatory Peretz of Cushman & Wakefield G Coach Inc. (COH) On the same day, he sold 5,769 shares at 19-01 Steinway St., Astoria, Queens site walk-through will be held at 2 p.m. represented the tenant in the Michael D.Tucci, president of North prices ranging from $204.87 to $208.08 Filed for Chapter 11 bankruptcy on June 15. For more information, transaction, while Daniel Blanco, American retail, exercised options on in a transaction worth $1,188,082. He protection on June 3. The filing cites contact Peter Clements at David Israni and Ramona Huegel 184,667 shares of common stock at prices now directly holds 10,787 shares. estimated liabilities of $10,000,001 to (212) 861-8025 or [email protected]. represented the landlord in-house. ranging from $26.21 to $29.85 on May $50 million, and estimated assets of Asking rents in the building range from 27, in a transaction worth $5,316,962. Gary J. Flood, president of global $1,000,001 to $10 million. Among the G Metropolitan Transportation Authority $34 to $37 per square foot. On the same day, he sold 31,847 shares at products and solutions, exercised options creditors with the largest unsecured Requests competitive sealed bids by 3 prices ranging from $40.96 to $41.10 in a on 4,904 shares of common stock at claims are Local 553 Benefits Fund, p.m. on June 18 for cleaning and G Hargraves McConnell & Costigan transaction worth $1,305,910. He now $39.00 on May 25, in a transaction owed $800,000; and the Internal painting of the lower level of the signed a 10-year, 10,000-square-foot directly holds 735,981 shares. worth $191,256. On the same day, he Revenue Service, owed $774,573. Verrazano-Narrows Bridge. A site tour lease at 230 Park Ave., a 34-story, 1.4 sold 4,904 shares at prices ranging from and prebid conference will be held at million-square-foot office tower G Ann Taylor Stores Corp. (ANN) $204.84 to $208.00 in a transaction G Park West Circle Realty 10:30 a.m. on June 18. Reservations managed by Monday Properties Corp. Katherine Lawther Krill, president, worth $1,009,975. He now directly 315 W. 57th St. must be made no later than noon the Matthew McBride of CB Richard Ellis director and chief executive, exercised holds 14,919 shares.  Filed for Chapter 11 bankruptcy preceding day with Ronald Stewart at Inc. represented the tenant in the protection on June 2. The filing cites (646) 252-7081. For more information, transaction, while Paul Amrich, also of estimated liabilities of $1,000,001 to $10 contact Victoria Warren at CBRE, and Jordan Berger of Monday million and estimated assets of (646) 252-6101 or [email protected]. Properties represented the landlord. The DEALS ROUNDUP $1,000,001 to $10 million. Among the asking rent was $60 per square foot. creditors with the largest unsecured GOODS AND SERVICES G Health and Hospitals Corp. G TRANSACTION SIZE claims are Constantine Cannon, owed Danske Bank Group signed a 10-year COMPANY (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE $2,176,872.64; and Lenox Hill Seeks competitive sealed bids by 3 p.m. on lease for 8,600 square feet on the 35th Radiology, owed $247,077.05. June 18 for complete window replacement floor of 280 Park Ave., a 28-story, iCrossing Inc. $425.0 Hearst Corp. (Manhattan) SB M&A and repair at South Manhattan 380,000-square-foot building owned by OMNI Energy Services Corp. $116.2 Wellspring Capital FB M&A Healthcare Network hospitals. Bidders Broadway Partners. Matthew McBride Management (Manhattan) GOVERNMENT CONTRACT must have at least seven years’ experience of CB Richard Ellis Inc. represented the Exelixis Inc. $80.0 Deerfield Management Co. (Manhattan) GCI OPPORTUNITIES with window installation and repair. For tenant in the transaction, while Gregg Research Tri-Center $77.0 Northwood Investors (Manhattan) SB M&A information regarding this bid, contact Rothkin and Paul Amrich, also from Industrial Park Following are selected contract Ivan Rawls at (212) 562-2552 or CBRE, represented the landlord. The Ener1 Inc. (Manhattan) $65.0 Ener1 Group GCI opportunities recently announced by New [email protected]. asking rent was $85 per square foot. York City agencies.To learn how to sell Edelman Shoe Inc. (Manhattan) $39.4 Brown Shoe Co. (50%) SB M&A goods and services to city government, visit G Housing Authority G Wilson Associates signed a five-year, Arena Pharmaceuticals Inc. $35.5 Deerfield Management Co. GCI www.nyc.gov/selltonyc. For a searchable Seeks competitive sealed bids by 10 a.m. 7,950-square-foot lease at 119 Fifth Ave., (Manhattan), Deerfield database of current procurement notices, on June 22 for the painting of apartments an eight-story, 56,731-square-foot office Capital (Manhattan) visit www.nyc.gov/cityrecord. Listings are at Tilden Houses in Queens. Contact building owned by 119 Fifth Ave. Corp. HauteLook.com $31.0 Insight Venture Partners (Manhattan) GCI alphabetical by category and department. Wanda Mealing at (212) 306-6619 with Robert Corbi of Jones Lang LaSalle Zeltiq Aesthetics Inc. $25.0 Advanced Technology Ventures, GCI questions about this solicitation. represented the tenant in the Frazier Healthcare Ventures, CONSTRUCTION SERVICES transaction, while Jeffrey Schwartz of Venrock (Manhattan), Aisling G Department of Environmental Protection Adams & Co. represented the landlord. Capital (Manhattan) Seeks competitive sealed bids by 11:30 REAL ESTATE DEALS The asking rent was not available. Altura Medical Inc. $20.0 Advanced Technology Ventures, GCI a.m. on June 15 for service and repair of SV Life Sciences Advisers, low-voltage variable-frequency drives Companies that would like to have details New Leaf Venture Partners (Manhattan) citywide. Contact Lalson Varghese at of their recent transactions appear in these STOCK TRANSACTIONS Selected deals announced for the week ended June 5 involving companies in metro New York. (718) 595-6841 for information listings should e-mail descriptions FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing regarding this solicitation. following this format to Following are recent insider transactions at shares of a company with the participation of a financial buyer. GCI: Growth capital investment represents new money invested in a company for a minority stake. SB M&A: Strategic buyer [email protected], with “Real New York’s largest publicly held companies M&A represents a minority or majority acquisition of existing shares of a company without the G Department of Parks and Recreation estate transaction” in the subject line, or filed with the Securities and Exchange participation of a financial buyer. source: capitaliq Requests competitive sealed bids by 10:30 enter them online at Commission by executives and major

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22 | Crain’s New York Business | June 14, 2010 20100614-NEWS--0023-NAT-CCI-CN_-- 6/11/2010 7:50 PM Page 1

COST FACTOR: SAIC’s Gerard Denault says Clocking CityTime project replacing the city’s 19th-century ledger- Continued from Page 1 based timekeeping rate: regular shifts, Saturday shifts, plowing system will save it tens Gerard Denault,vice president and operations snow on Saturdays,plowing on a Tuesday,driv- of millions of dollars a manager of SAIC. ing a garbage truck, driving a pickup truck. year. The company fired the employee who CityTime has changed all that. signed the contract,but the city didn’t let SAIC Now,timekeepers use drop-down menus to off the hook. Instead, lawyers at the Office of take roll call. Employees report in when they Payroll Administration, the agency overseeing arrive and leave work using electronic hand the project, insisted that SAIC fulfill its end of readers or a Web-based time-tracking system. the deal. With the remaining city funds plus CityTime translates the hours a person works $30 million of its own money,SAIC developed into how much a person gets paid. the framework for the software that would “Now, what took an hour takes 15 min- eventually be called CityTime. utes,” Mr. Denault says of how CityTime has But what started in 1998 as a $63 million simplified the work of the city’s timekeepers. project has ballooned today to more than $700 million and counting.Less than half of the mu- nicipal work force—about 77,000 employees— Bureaucratic are expected to be on CityTime when SAIC’s Roadblocks

contract with the city expires in September. buck ennis Delayed and over budget, CityTime has be- building the system was a technical chal- come an easy political target for unions claim- lenge; implementing it has been a political one. representative, says his members objected to the delays should not come as a surprise to ing privacy concerns and politicians staring The mayor’s OPA board member, Mark Page, having to place their hand on palm readers that John Liu’s office. “The offices of both [OPA] down budget cuts.Many of the delays and wast- urged SAIC to roll out the system at a pace each he says are unsanitary. Having to “punch in” directors reviewed and approved all contract ed dollars can be traced back to foot-dragging agency felt comfortable with, according to the makes the employees, who are primarily engi- amendments and encumbrances in their ad- and internal politics within city agencies,as well company. “You can’t push this system onto neers and architects, feel like “we’re on the fac- ministrative roles,” OPA’s response reads. as a failure by city administrators to grasp, at agencies before they’re ready,”he told SAIC ex- tory floor,” all of which he calls bad for morale. “The Comptroller’s Office registered all con- least initially, the technical complexity and po- ecutives through an interlocutor, Mr. Bondy. The union mounted a campaign to derail tract actions.” litical perils of the enormous project. But as the The Office of Payroll Administration says CityTime, outmaneuvering both the city and Though Mr. Liu took over from his prede- project nears its final phases, the completion of most requests to delay the implementation of SAIC. Its protests outside the Parks Depart- cessor in January, he retains the same chief in- CityTime is in no way assured. CityTime “are usually granted,despite the fact ment and the Department of Design and Con- formation officer, Michael Bott, who attended SAIC needs the board of the Office of Pay- that the agencies and their staff are already ful- struction forced SAIC to develop a Web-based quarterly meetings that monitored CityTime’s roll Administration to approve a three-year ly prepared.” Ensuring acceptance of the sys- alternative to the palm scanners,at a cost of “sev- progress and discussed its delays. contract extension worth $108 million to tem by city employees was “deemed to be more eral million dollars extra,” Mr. Denault says. In Mr. Liu is following up on concerns raised transfer all remaining workers to the system, important than simply implementing City- the end, many of the union members for whom during his tenure on the City Council con- and then transition the maintenance of the Time as quickly as possible.” the system was designed were not permitted by tracts committee that SAIC and its contrac- system over to city workers. SAIC expected some pushback from agen- their managers to use it. Those managers, in- tors were paid rates labeled exorbitant by at The two-person board that approves City- cies—and got it. One delay SAIC says has be- stead, preferred the original palm scanners. least one council member.SAIC billed the city Time contracts is split, however. While the come emblematic of the pointless waste that One of the biggest grievances among union $400,000 for about 2,000 hours of work by one member representing the Bloomberg adminis- has endangered the project came from the members is that CityTime may hit workers’ of its contractors—a rate of around $200 an tration stands behind CityTime,recently elect- Human Resources Administration. SAIC paychecks. “Now you’re going to turn around hour that covers salary, administrative and ed City Comptroller John Liu and his board says it was ready to bring the agency’s 15,000 and nickel-and-dime us with these time other SAIC expenses. member do not. Mr. Liu says he will not ap- employees onto the system three years ago,but clocks,” Mr. Forster says. SAIC is desperate to complete the project,in prove any new contracts until the completion of Jane Roeder, a deputy commissioner who What unions call nickel-and-diming, city part to sell the system to other municipalities an audit of the project by his office this fall. oversees AutoTime,its current time-manage- officials call accurately tracking labor costs. under a proposed revenue-sharing deal with the The Office of Payroll Administration and ment system, refused to cooperate. CityTime will ultimately help managers iden- city.CityTime, it says, is the only software of its its executive director, Joel Bondy, who has al- It was only when Ms. Roeder announced tify workers with high overtime costs or exces- kind that can manage the complexities of track- ready come under attack for lax management her retirement that SAIC was able to sched- sive sick-day absences.It can also be used dur- ing a big, unionized government work force. of $200-an-hour CityTime engineers, have ule the transition. Ms. Roeder retires June 18. ing labor negotiations to gauge the cost of If SAIC’s contract is not extended by the kept a low public profile. SAIC, angered over SAIC says it plans to bring 5,000 employees small changes in labor contracts. end of September, however, the system will be the way it has been portrayed in the media, onto CityTime the weekend of June 27 and not only incomplete, but also worthless. broke its silence by speaking with Crain’s. the rest of the department by the fall. “If we walk out on Sept.30,the system shuts “This should have been done three years Comptroller’s Control down,” Mr. Denault says. “The city cannot ago, and it cost the city millions of dollars,” regardless, both SAIC and the city—which maintain the system without us.They have no The Private Contractor Mr. Denault says. answered questions by e-mail and refused re- staff to support it.The option is:Give us an ex- mr. denault, who has overseen many city Ms. Roeder declined to comment. A quests for an interview with Mr. Bondy—say tension, or carry the system out [yourself ].”  projects for SAIC,occupies a windowed 25th- spokeswoman for HRA would not address floor office in the heart of Koreatown.Despite whether Ms. Roeder’s departure cleared the the airy surroundings,Mr.Denault was suffer- way for bringing the agency onto CityTime, ing from a bronchial infection one fine spring except to say that Ms. Roeder is one of sever- Gulf lures New Yorkers day last month, his congested breathing a fit- al officials in charge of the agency’s time-man- ting metaphor for the huffiness he feels over agement system. the troubles ensnaring CityTime. The Office of Payroll Administration said Continued from Page 2 grants to nonprofit organizations in the region. “I don’t think people understand the com- HRA was not brought over to CityTime her salon has been dutifully saving hair clip- Emily Dubner, 25, launched Baking for plexity of this system,” he says. sooner because it had a timekeeping system pings to send to Matter of Trust, a nonprofit Good last year from her Manhattan apartment. He then rattles off a few reasons why City- and “was already realizing some benefit.” organization that’s making oil-absorbing Customers order cookies, brownies or other Time took so much money to build and why it But SAIC refutes this logic.The AutoTime broom-like tools from nylon stockings stuffed baked goods online, and 15% of their purchase is an important step in modernizing the city’s system was costing the city $3 million a year with hair, which have proven to be effective is donated to the charity of their choice. operations. The city employs 6,000 people simply to license the software.Ending it would and earth-friendly. solely to track the time of workers, and there have been easy and would have brought imme- “We’re such a people business,” Ms. Farel Donations encouraged are 4,000 different ways to classify “time”in the diate savings, in part because the maintenance says. “We have customers from that region the average order is about $45, Ms. Dubn- city work force. Every month, the Police De- of the entire CityTime system is more cost-ef- whose families have been affected, and you er says, and the company works with 100 dif- partment generates 1.5 million time sheets, fective. When fully rolled out to 167,000 em- feel that one degree of separation.” ferent charities,continually adding new causes. and each one must be stored for 55 years by law. ployees, the system—including software, The salon has already She signed up the Gulf Coast Fund about a Timekeepers at the department have a 30% er- hardware and personnel—will cost the city $29 filled 12 boxes with clippings, and expects to month ago.Headquartered at Rockefeller Phil- ror rate, costing the city hundreds of millions million a year to maintain. It would be even double that number by the time it sends the anthropy Advisors, the fund was set up after of dollars annually in overpayments and mis- more cost-effective if the city eventually rolls shipment later this month. “I’d like to think Hurricane Katrina hit in 2005, and it has made calculated pensions.And underpaying workers out the system to the Department of Educa- it’s great karma,”Ms.Farel adds,“but it’s a lit- grants to about 160 organizations in the region. leads to costly labor grievances. tion’s 136,000 employees as well. tle strange having boxes of hair downstairs.” Though the Baking for Good website usu- An assistant to Mr. Denault opens a two- By next year,CityTime should start paying Among the pet set, Brooklyn groomers ally features a cause of the week, it will show- foot-wide green metal binder. Inside are time- for itself in cost savings. Monster Mutt and Mobile Mutts are running case the Gulf Coast Fund all month to nudge keeping sheets that look like box scores for a a fur drive for the same cause. customers to pick the oil-spill cleanup. very long, very high-scoring Yankees game. Somewhere between those hired to work Ms. Dubner says sales generate more than This is how the Department of Sanitation used Union Opposition the cleanup and those making donations stand $1,000 in monthly donations, and estimates to keep time, Mr. Denault says. The time one of the mostvocal opponents of CityTime enterprises like Baking for Good,an online re- the company will reach $20,000 in overall do- sheet’s bewildering system of marks and has been Local 375 of DC 37, the Civil Service tailer that gives a part of each sale to social and nations by the end of 2010. scratches reflects the complexity of union con- Technical Guild, whose 6,800 members have a community causes, and the Gulf Coast Fund, “Our motto is ‘A little sugar goes a long tracts, each one representing a different pay presence in 30 city agencies.Jon Forster,a union a Manhattan-based foundation that makes way,’ ” she says. 

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that spot, and the community really wants more parkland,” says Dan City plots huge land deal with the U.N. Garodnick, the local City Council member. “Hopefully, we can get a Continued from Page 1 U.N. for permission to build on may be the easy part. The U.N. ing on its campus, on what is now deal.” wanted for years, and the city could Playground, a would have to approve the deal at a green space to the north of the Gen- In a statement, an EDC add park space and waterfront 29,000-square-foot blacktop across time when it is already spending eral Assembly Building. That’s also spokesman said the city would con- amenities despite the budgetary cri- East from the U.N., on $1.9 billion on a gut renovation of its far from ideal for the city because tinue to work toward creating more sis. First Avenue. headquarters complex. the U.N. sits on sovereign territory open space and allowing a major “This is a once-in-a-generation The idea of the U.N. building on that is exempt from zoning laws, employer to consolidate and ex- opportunity,” says Sarra Hale- Trading parkland has been meaning local officials would have pand. Stern, district office director for but the deal faces numerous ob- kicking around for years, but two no say over what is constructed. Another reason behind the re- state Sen.Liz Krueger,who is work- stacles. The playground transac- factors have resurrected the concept Also, the city would be deprived of vived push is the possibility of using ing on the proposal that’s being tion would require state legislation recently. money if the U.N. built on its own 22 caissons left behind when a tem- spearheaded by the city’s Economic because it involves eliminating First, about six months ago, the land. porary roadway was built while the Development Corp. parkland. The idea would be to U.N. hired a consultant to study its FDR Drive was under construction. Filling the promenade’s gap, compensate the community for the real estate needs, sources say. The Long-cherished dream Keeping them would shave $25 mil- which extends from East 38th to loss by expanding the promenade consultant found that the interna- sources say the U.N. has long lion off the cost of constructing the East 59th streets, would cost $150 and adding space to existing area tional body needed to extend be- wanted to build on the playground promenade. million to $200 million. The city parks. yond its renovated headquarters and site because its proximity to its New York State’s Department of would finance the construction by “In the legislation, we are going space it leases elsewhere. In fact, the headquarters means a tunnel could Environmental Conservation want- selling two buildings on East 44th to have to be very specific about U.N.is exploring moving some local be created to connect the two build- ed the caissons removed by the end Street that it leases to the U.N. what will be constructed if we take employees out of the area. Such a ings. Also, any building the U.N. of last year, but it has allowed them Those sales could yield anywhere the major step of [removing] park- move by a major employer would be constructed on the playground site to stay as the promenade deal is be- from $150 million to $300 million. land,” says Brian Kavanagh, a state a big blow to the city. couldn’t be any taller than its current ing shaped. However, it is unclear In addition, sources say, the city is assemblyman working on the deal. The U.N. is also weighing the headquarters, sources say. when the department’s patience will seeking at least $75 million from the Yet getting the OK from Albany possibility of constructing a build- “The U.N. really wants to be in run out. 

tered in the center and that the in- fact, in the past two years, property dustry contributes a whopping $10 owners have had to do all they Garment center rezoning tabled billion to the city’s economy every could—including offering months year. of free rent or cut-rate rents—to Continued from Page 1 and hoteliers has dried up. age and zoned almost 10 million All told, the district—which convince their fashion tenants to The apparent change of heart “The garment center has a bit of square feet of space to protect what houses Broadway costume design- stick around.Current rents for some comes amid a chorus of complaints a reprieve,” says Susan Scafidi, fash- was left of the industry.Two decades ers side by side with couture fashion manufacturing companies in the from high-profile designers—in- ion law professor at Fordham Uni- later,as nonfashion users gobbled up designers—has more fashion com- garment center range from a scant cluding Yeohlee Tang and Diane von versity School of Law. “Gentrifica- space on the fringes of the district panies than Paris, London and Mi- $18 to $25 a square foot, roughly Furstenberg—and retail executives, tion isn’t pressing against its borders and more and more designers shift- lan combined, according to the half of what office space in the area as well as an army of sewers, fabric to the same extent that it was in ed production overseas, the city’s study.More important, the proxim- would fetch. cutters, pattern makers and button 2007.” Economic Development Corp. be- ity of designers, factories and sup- Industry advocates want to en- sellers who work in the area. Word However,the garment center has gan weighing rezoning measures. pliers of everything from ribbons to sure that enough of that inexpensive of the city’s move follows a study re- been shrinking of its own accord for zippers makes the center the fashion space remains to sustain the area’s leased this month by the Design decades.Today, it spans roughly the More space than need startup capital of the world. fashion-related companies, which Trust for Public Spaces. Instead of area between Sixth and Ninth av- “you have a huge amount of space “The protection of the historic may yet prove to be a tall order. describing the garment center as a enues and West 35th and West 40th that’s being held for production, but character of the neighborhood, its “Last fall,landlords were extend- relic of a bygone industrial age, the streets. The district is currently you don’t have enough production role as an incubator and the source ing discounts to tenants,” said new report bills it as a thriving and home to 21,500 fashion-related to absorb all that space,” says Bar- of the global fashion industry needs Michael Meola, a real estate con- hugely productive research-and-de- jobs. That figure has dropped 42% bara Randall, executive director of to be reinforced,” says Vin Cipolla, sultant and former EDC executive, velopment hub for high-end fashion. over the past 15 years,says the Fash- the Fashion Center BID. president of the Municipal Art So- at a panel discussion last week. “But At the same time, the garment ion Center Business Improvement The Design Trust’s new “Made ciety, which has been working with real estate pressure will return in center is catching a break because of District, and it represents only a in Midtown” study does seem to the Design Trust. three to five years.” the recession. With vacancies way fraction of the 200,000-plus people show that’s there’s still plenty left in Bolstering the odds of neighbor- By then, industry insiders up across the city, demand for space who once worked in fashion in the the district that’s worth holding on hood preservation is the fact that hope, the city, designers and ten- in and near the district on the part of city during the 1960s. to.The report found that almost 850 demand for space has dropped ants will have reached a compro- alternative users like office tenants In 1987,the city noted the shrink- fashion companies are headquar- hugely since the recession hit. In mise solution.  New rental tower fills tall order Lynch leads growth

Continued from Page 3 first quarter of 2011,which could be nated concessions in February. Continued from Page 3 In addition,as more tech compa- that will be unparalleled,” says a lucky break. Because of the finan- With many of the off-price leas- the past 12 months. nies launch tablet devices, BN.com, Daniel Hedaya, executive vice pres- cial crisis, which forced most devel- es due to expire in the fall, however, In addition, Barnes & Noble is with its open format, can become ident of residential brokerage Plat- opers to cancel or delay their plans, the market faces a major test. That going up against deep-pocketed tech their bookstore, too. HP recently inum Properties. “It’s the type of the only other large rental on the factor, combined with a still uneven giants that don’t have legacy busi- partnered with Barnes & Noble,and tower people want to live in.” market in the area is Metro Loft’s 20 economic recovery, could yet make nesses to protect. In 2009, Amazon Mr. Lynch expects other deals. “We The curvy iron-clad tower is well Exchange Place. It will have 800 Forest City Ratner’s hope of garner- had revenue of $25 billion, and Ap- will have a more dominant market located, at 8 Spruce St., between units when completed over the ing rents that brokers predict will ple’s was $37 bil- share in e-books William and Nassau streets. It course of the next couple of years, work out to be around $80 per lion. And while e- than in physical stands just north of the financial dis- including 180 that are expected to square foot overly ambitious. Rents books currently B&N is up books,”he says.In- trict and a stone’s throw from both hit the market this summer. at nearby Liberty Plaza and 10 Bar- represent 5% of dustry estimates the and City Hall Overall, the rental vacancy rate clay are $60 to $65 per square foot— book sales, their against deep- put Barnes & No- Park. in the financial district dropped 2 and even those are considered high. rapid growth will ble’s market share percentage points during the first According to Platinum Properties, only put pressure on pocketed of print-book sales Winning over the locals six months of the year from the rents in luxury financial district bookstores. at 15% to 18%. to help win over the community, same period a year ago, according buildings range from the mid- to Barnes & Noble tech giants And by entic- the developer agreed to allocate to a recent report by Platinum high $40s per square foot. insists that it will ing Nook owners much of the terra-cotta bottom six Properties.The drop was caused in grow its share as into its stores with stories to a new public school, and part by a number of longer-term Aiming high weaker competi- programs and pro- roughly 20,000 square feet to New leases that were signed over the past “they’re looking to attract the tors, like Borders motions, Barnes & York Downtown Hospital—the year in response to landlord con- Wall Street crowd and the upper end Group, lose ground. And despite Noble is getting the most out of tower’s neighbor across the street. cessions that included a few of the market,” says Andrew Barro- Amazon’s head start, Mr. Lynch says both sides of its business. “They’re The developer will also build a months of free rent. cas, chief operating officer at bro- the sales race between devices is ac- always thinking how to sell more 13,000-square-foot public plaza “Beekman is fortunate to open in kerage The Real Estate Group. tually quite close, pointing to an on- books,” says Carolyn Reidy, chief with trees and a fountain. a strengthening rental market,” says “Eighty dollars is extremely aggres- line report from Digitimes Research executive of Simon & Schuster Inc. While the developer declined to Gary Jacob, executive vice president sive, but I think they have a product that said factory shipments of the “If they can figure out how to marry comment on details of the project, of developer Glenwood Manage- that is superior to anything else out Nook in March surpassed those of what is in their stores with what’s leasing is expected to begin in the ment, which raised rents and elimi- there.”  the Kindle. online, they can survive.” 

24 | Crain’s New York Business | June 14, 2010 20100614-NEWS--0025-NAT-CCI-CN_-- 6/10/2010 6:41 PM Page 1

21.5% The drop in real average annual wages in the city’s securities industry from 2008 to 2009 BUSINESS LIVES Source: IBO Senior Economist David Belkin HOT JOBS GOTHAM GIGS EXECUTIVE INBOX

EXECUTIVE DIRECTOR Anne Fisher ORGANIZATION Groundwork Inc. JOB DESCRIPTION Leadership An online and strategic planning, serve as spokesperson, boost fundraising enterprise MOST IMPORTANT TASKS Estab- that’s out lish budget, oversee evaluation of of this world programs CREDENTIALS NEEDED Manage- STARTING ABOUT NOW, and for ment and marketing experience, the next few months, Jupiter, out familiarity with city and state from behind the sun, is visible youth-development communities from Earth. Scientists are puzzled by the disappearance of one of RECRUITER Phillips Oppenheim the two purplish stripes that used SALARY Current executive director to encircle its surface. And if you earned $226,303 in 2008 know what to look for, you’ll notice DOWNSIDE Fundraising in difficult “exquisite ever-changing details in economic times Jupiter’s zones, red spot, ovals, festoons, and so on,” says UPSIDE Inspiring diverse audi- astronomer Bob Berman, who ences, helping underserved youths leads an expert-guided tour of the Groundwork Inc. is a community solar system nightly at Slooh.com. agency that provides access to Slooh—a play on “slew,” the greater opportunity. It reaches sideways movement of a more than 3,100 families and has telescope, and “ooh”—is a labor a budget of $5 million, 40 full-time of love. Founder Michael Paolucci and 150 part-time employees, and has raised a total of $40 million more than 150 volunteers. in seed money from venture —SELENA SHEN capitalists for startups including online staffing firm Solvate. So 80 IS THE NEW 30: far, investors aren’t backing Sylvia Weinstock’s Slooh, but he’s financing the EXECUTIVE MOVES wedding-cake company out of his own pocket. business is still going strong. The site lets sky-watchers New York State Society view the heavens free of charge of Certified Public or, if they want to control which Accountants: Margaret A. Wood, 60, was images they see, for an annual elected president. She membership fee of $45.95. has previously served Although Slooh has more than as a vice president and 200,000 active users, it’s light- member of the board years away from making a profit. of directors and the executive An avid amateur astronomer, committee. She continues in her role as a professional-standards partner at “I was part of the market for Grant Thornton. Slooh” when he started it in 2003, She Takes the C he says. “It’s my passion project.” Robert W. Berliner, 76, was named She Takes the Cake ake buck ennis director at large. He had been chair of But building a business out of a the auditing standards committee. hobby has its pitfalls. “I think Morgan Joseph & Co.: William S. sylvia weinstock is not impressed by the latest bakery fad. “I have ‘I have yet yet to taste a really good cupcake,” says the legendary wedding-cake most people who try to do it make McDermott, 61, joined the investment the mistake of assuming that banking firm as a managing director and maker. ¶ Now, during peak wedding season, she and her small staff head of the company’s institutional to taste a everyone has the same passion group, a newly created position. He was often work 15-hour days at her TriBeCa bakery. She lives with her for it,” Mr. Paolucci observes. most recently at Soleil Securities, where really good husband, a retired lawyer, in a loft upstairs. ¶ At 80, Ms. Weinstock Mr. Paolucci intends to stick it he served as a managing director and keeps an open mind when it comes to recipes. Her latest experiment out, but he won’t guess how long head of institutional sales. cupcake’ it will be before Slooh becomes Sullivan & Worcester: Timothy J. Pfister, is tea-flavored butter cream, upon request from her Asian clients. self-sustaining with the help of 58, joined the law firm as a partner in Her cakes start at $17 per person, but prices can go much higher.The the corporate group. He was formerly a other revenue streams, such as a partner at Patton Boggs. biggest so far was for a Saudi prince and his 2,000 guests.The sofa- video game, introduced last year. Hudson Securities Inc.: sized confection was baked in New York in pieces, flown on the Many of Slooh’s biggest fans Frank J. Drazka, 41, are in cities like New York. “Even joined the financial- family’s jet to Riyadh and assembled on-site. ¶ Ms. Weinstock with a good amateur telescope, and advisory-services didn’t bake professionally until she was in her 40s. During trips to you usually can’t see anything in firm as head of investment banking, Hunter Mountain, while her husband and three daughters were the city because of all the light and was appointed to skiing, she’d bake pies and sell them to local restaurants. Next, she pollution,” he says. the board of directors. apprenticed with a pastry chef. ¶ The native New Yorker says she He was formerly managing director and HAVE YOU STARTED a business chairman of the board at Trenwith Group. doesn’t even like dessert. “My husband is the big dessert person,” she based on a hobby or passion? How Pace University: Robert C. Almon, 58, adds. “Me? I prefer a good raisin-cinnamon babka.” did it work out? Tell us at See EXECUTIVE MOVES on Page 26 —hilary potkewitz www.crainsnewyork.com/execinbox.

June 14, 2010 | Crain’s New York Business | 25 20100614-NEWS--0026-NAT-CCI-CN_-- 6/11/2010 8:02 PM Page 1

RÉSUMÉ REVIEW Avoiding another 2008 Is your job search all it could be? We ask the experts. Longtime FTeditor the same time. utilities solves the problem—banks NAME KAREN ASCH are inherently unstable. SUMMARY What can be done to rein in the John Authers: Banks markets? What can be done to protect average Marketing, events and sales professional should be smaller The need for regulation to ensure investors’ portfolios? PROFESSIONAL EXPERIENCE that markets don’t get distorted is British life insurers used to do some-  Ogilvy & Mather, 2006-2009 very important. I’m fascinated by thing that’s worth exploring. They Account director: Managed program for American Express BY AARON ELSTEIN the example of the 1930s, when the would allocate some investment was beset by bank proceeds to policyholders every year, OPEN trade show, developed and launched national B2B Face to Face ohn authers, a longtime Fi- runs and came up with a system that and this “bonus money” was yours, sales program, managed vertical B2B trade-show program  nancial Times investment edi- solved the problem, although in the no matter what happened in the Eventive Marketing, 2005-2006 tor, recently wrote The Fearful process, it did slow economic activ- market in subsequent years. It was Director of account services: Developed and executed national event- Rise of Markets, which looks at ity and bank profits at the margins. reassuring for customers, and the marketing programs for Coors Light and Killian’s Irish Red, participated Jthe catastrophe of 2008 and We need to consider Faustian bar- discipline promoted a more long- in strategic process to ensure effective program development what can be done to prevent it gains like that—some con- term outlook for money man-  Colangelo Synergy Marketing, 2003-2005 from happening again.Mr.Authers, straints in exchange for agers.The U.S. government Account services: Implemented national consumer and trade viral 43,is based in New York and recent- more stability. should look into mandat- marketing and event campaign that was executed in 15 major markets ly became the ing guarantees like this for and attended by more than 20,000 consumers editor of FT’s Does the reform bill in Con- people who want them. Of EDUCATION popular “Lex” gress address these issues? course, those who want to  column. I’m nervous that they don’t have at it in the markets College, B.S., communications, 1984 MOVERS & have quite the right an- should be allowed to do so. Résumé appears in condensed form. SHAKERS Why are invest- swers. For example, EXPERT ADVICE ment bubbles What’s the biggest fal- with regard to the Karen has a lot of great experience with big names in the industry, but she more common lacy in the market now? John biggest banks, should remember to quantify her success. When writing a résumé, metrics now? I suspect the There are two: make a huge difference. She needs to ensure simplicity by using bullet Authers Simply put, best thing to First, I think con- points; recruiters don’t like to read narratives. And don’t make recruiters the stock do is to split fidence that Chi- market has them up by na and emerging search for your capabilities. We will go to the candidate who provides changed dramatically.It used to be a increasing markets will res- clarity. Karen needs to paint a picture of her accomplishments. Recruiters game played by rich people with reserve re- cue the world want to know how big contracts were, who was involved and what the their own money.Now,it’s big insti- quirements, economy is mis- results were. tutions managing other people’s which would placed. Second, —connie thanasoulis-cerrachio, career services expert, Vault.com money. And of course, you behave require them while plenty of very differently with someone else’s to dispose of people worry To contact this candidate or to be featured in “Résumé Review,” e-mail us money. We’ve created an industry assets.I don’t about infla- at [email protected]. that unwittingly creates bubbles by think regu- tion, I think encouraging people to invest other lating them deflation is a people’s money in the same stuff at closely like risk. 

EXECUTIVE MOVES International Realty. North American sales. He previously chair of the law firm’s Japan practice. He Rights. First Capital: Michael J. Byrne, 62, was ran his own consultancy firm, Morrissy had been a partner at Paul Hastings King & Spalding: Kenneth A. Raskin, 55, named vice president at the commercial + Vine. Janofsky & Walker. was appointed partner and chair of the Continued from Page 25 finance company. He was most recently L&L Holding Co.: Paul R. Sygrove, 50, Iris: Ben Essen, 30, was promoted to law firm’s employee benefits and was named executive vice president for vice president and senior business joined the real estate investment head of planning for the United States executive compensation practice. He finance and planning and chief financial development officer at Siemens company as a managing director. He had at the independent marketing network. was most recently at White & Case, officer. He was formerly a principal at Financial Services Inc. been at Swig Equities, where he served He was formerly senior planner at its where he led the global executive Ernst & Young. Woman’s Day Brand Group: Ginger as chief investment officer. London operation. compensation, benefits, employment Cramer-Krasselt: Anne Bologna, 53, Sutton, 49, was promoted to vice Kaboodle: Shari Gunn, 38, was promoted Matt McRoberts, 35, was promoted to and labor practice. joined the marketing and president and publisher. She was to chief marketing officer at the social head of business development for the Protiviti: Ken Leissler, 54, joined the communications agency as executive formerly associate publisher. shopping website. She was formerly vice United States. He was formerly business consulting and internal audit vice president and general manager of Jefferies & Co.: Paul Viviano, 39, was president of advertising and business managing director of the New York firm as a managing director and leader the New York office. She was most named head of U.S. event-driven sales in development. office. of the electronic discovery team in the recently chief executive of Toy New the equities group at the investment Erika Lenkert, 43, was promoted to vice Jones Day: Elizabeth H. Evans, 44, litigation, restructuring and investigative York, which she also founded. banking firm. He was previously co- president of content and community joined the law firm as a partner in the services practice. He had been a senior Brown Harris Stevens: Cia Comnas, 58, head of special situations at Morgan from vice president of content. banking and finance practice area. She adviser in the dispute and legal was appointed executive managing Stanley. Sterling National Bank: was formerly a corporate partner at Weil management consulting group and director at the residential real estate Synaptic Digital: Tom Morrissy, 48, Barrett Stokes, 45, was Gotshal & Manges. leader of the global e-discovery and services provider. She was previously a joined the digital communications named vice president BBC Worldwide Americas: Paul Davis- investigations group at Duff & Phelps. senior vice president at Sotheby’s provider as executive vice president of and cash-management Miller, 48, joined the public-service Fuse: Sue Rasmussen, 41, joined Madison business development broadcaster as senior vice president of Square Garden’s music-television officer. He had been fiction. He was most recently an network as vice president of direct- CORPORATE LADDER vice president at independent sales agent and producer. response advertising sales. She was most Sovereign Bank. Simpson Gumpertz & Heger Inc.: Vince recently president of Media Doremus: Marcus Cammalleri, 49, was promoted to senior Cooperative, which she also owned. NYC-FOCUSED NONPROFIT NAMES NEW CEO Kemp, 51, was appointed co-executive principal from principal at the The Mixx: Andy Mazo, 44, joined the BERNELL GRIER, 54, was appointed chief executive of Neighborhood Housing creative director at the communications engineering and design firm. marketing and brand development firm Services of New York City after serving as the organization’s interim chief firm. He was formerly creative director Milan Vatovec, 46, was promoted to as director of client services. He was at CreativeFeed. senior principal. He was formerly a previously with CBX, where he served executive. She joined the nonprofit in 2004 as chief operating officer after a Cushman & Wakefield: Marc Packman, principal. as studio operations manager. 30-year career in the banking industry. Ms. Grier’s management experience 34, was promoted to senior managing Digital Zen Productions: Heidi Bayer, 43, WilmerHale: Andrew E. and background in the financial services industry were beneficial to the director of strategic agency services from joined the production planning and Nagel, 37, joined the organization through the recession. In her new managing director at the real estate execution firm as vice president of client law firm as a partner in role, she will work with the group’s partners to services firm. relations. She had been at Ultrabland, the corporate and develop sustainable and green communities. Michael Gambino, 30, was promoted to where she served as executive producer. transactional senior director from director. Vantage Properties: department. He was Ms. Grier was recently appointed to the Withers Bergman: Robert Wessely, 59, Raquel Batista, 35, was previously a partner at advisory board of the Federal Home Loan Bank joined the law firm as a partner. He was named vice president Kirkland & Ellis. of New York. Neighborhood Housing Services formerly a partner at Arnold & Porter. of corporate —maia blume programs and services resulted in $161 million Hunton & Williams: John Hawkins, 54, responsibility and in direct investments in New York City joined the law firm as a partner and co- compliance at the real EXECUTIVE PROMOTIONS communities and neighborhoods in 2009. head of the global energy project- estate firm. She had The fastest way to get an announcement into finance team. He was formerly a partner been executive director —MAIA BLUME Crain’s is to submit details online. Fill out the form at Paul Hastings Janofsky & Walker. of the Northern at www.crainsnewyork.com/submit. The Raj Pande, 54, joined as a partner and Manhattan Coalition for Immigration Executive Moves column is also available online.

26 | Crain’s New York Business | June 14, 2010 20100614-NEWS--0027-NAT-CCI-CN_-- 6/11/2010 11:24 AM Page 1 chemex / INSATIABLE CRITIC workshop on how to use Twitter and flickr.com Gael Greene LinkedIn for businesses from 5:30 p.m. THE to 8:30 p.m. at The Support Center, 305 Seventh Ave., 11th floor. The fee is $39.95 and preregistration is required. WEEK Call (917) 584-6263 for further details.

THURSDAY, JUNE 24 redux Summer not THE NEW YORK ENTREPRENEURS BUSINESS AHEAD NETWORK will hold a workshop on how to WHAT HE’S properly structure your entity to protect and JUNE 21-27 grow your assets from 6 p.m. to 8:30 p.m. at READING on the half shell Select Office Suites, 116 W. 23rd St., fifth- floor conference room.The program is free CONFERENCES & SEMINARS MTV CO-FOUNDER and onetime for members and $25 for nonmembers. AOL Time Warner Chief Operating Land on Montauk’s WEDNESDAY, JUNE 23 Call (646) 871-3599 or e-mail Join the NEW YORK INTERAGENCY [email protected] for further details. Officer Robert Pittman recently Navy Beach, and ENGINEERING COUNCIL for a conference on plowed through three books while construction planning and management CULTURAL EVENTS on vacation, starting with 1434: enjoy the clams from 9 a.m. to 4:30 p.m. at CUNY TUESDAY, JUNE 22- Pick The Year a Magnificent Chinese Graduate Center, 365 Fifth Ave. Fees are SATURDAY, JUNE 26 of the Fleet Sailed to Italy and Ignited the e are staying $125 for members and $150 for non- Enjoy a week of jazz with Renaissance, by Gavin Menzies. with friends who members. Call (201) 807-4013 or e-mail the CAREFUSION JAZZ week FESTIVAL SERIES “It was a slog to read but live year-round in [email protected] for further details. at the Jazz Standard, 116 E. 27th St. Performances fantastically well-researched, with an East Hampton BUSINESS DEVELOPMENT INSTITUTE will during the week feature groups such as just fascinating information not cul-de-sac. It’s hold a free seminar on taxation of U.S. Francisco Mela’s Cuban Safari and the found in any Western history bliss,W 1,000 miles from the summer steven richter multinationals from 2 p.m. to 6 p.m. at Ambrose Akinmusire Quintet. Tickets that I’ve ever been taught,” says rat race. But I’m depressed hearing OH, MY GOD: Clams in broth DLA Piper, 1251 Sixth Ave., 27th floor. for each show are $15, and reservations Mr. Pittman, a founding member of that once-unassuming Montauk is Call (800) 830-6687 or e-mail can be made by calling (212) 576-2232. private investment firm Pilot Group. fast becoming an imperative of [email protected] for additional info. chic—“Monhampton.” NAVY BEACH SATURDAY, JUNE 26 He also got through Andrew NETWORKING RECEPTIONS We decide to ignore the voice of 16 Navy Road, Montauk Head to the RIVER TO RIVER FESTIVAL, Ross Sorkin’s best-selling Too Big (631) 668-6868 TUESDAY, JUNE 22 the GPS looking for the odd turnoff which begins June 20, for its Children’s to Fail, about the financial crisis, www.navybeach.com/restaurant NETWORKING FOR PROFESSIONALS hosts a Day program, which starts at noon. Kids to the restaurant and get lost in a Dog- and John Heilemann’s and Mark mixer from 6 p.m. to 8 p.m. at O’Brien’s can meet storybook characters and enjoy Halperin’s political blockbuster patch just west of Montauk’s center. Irish Pub, 134 W. 46th St. $10 for performances by Gordon from Sesame Ah, at last, Navy Beach, an old spot members, $15 for nonmembers in Street and others. Stick around through Game Change. on the shore in its newest incarnation. CUISINE American beach advance; $20 for all at the door. the evening for a fireworks display and Both books gave the well- Call (212) 227-6556 or e-mail performances by the Brooklyn Youth connected Mr. Pittman a chance The low-slung rectangle with faux PRICE RANGE Dinner $15 to $38 portholes is empty at lunch. Drawn [email protected] Chorus and members of the Brooklyn to compare notes with the by a hazy aura at the front window, SERVING Dinner seven days, for more information. Philharmonic. The whole day is free and authors. “Just knowing a lot of the lunch Saturday and Sunday takes place at The Seaport. Visit interesting to sun brightening the gray-blue bay,we WORKSHOPS people … it was www.rivertorivernyc.com for more read the inside scoop on both traipse out onto the beach,five of us, RESERVATIONS Yes TUESDAY, JUNE 22 details. granted our choice of umbrellaed ta- DIYINTERNETMARKETING.COM is offering a —maia blume the election and the financial bles.An intrepid gull patrols the sand. NOISE LEVEL Serene on the sand crisis,” he says. We are given menus and water.A I can’t wait to return. To view Crain’s full calendar listings, go to www.crainsnewyork.com/events —MATTHEW FLAMM trio of summer nymphs ignores us, busy stuffing napkins and plastic I will definitely go back. cutlery into cardboard Corona beer I’ll let them simmer awhile. cartons for the anticipated weekend NO HATS Never again. crush. We have to lasso a server to take our order. But so what? It’s the beach. We’re mellow. Today’s whole fish is local fluke, Expecting clams on the half cooked the way my friend Howard shell—I read the menu too fast— likes it. He bones it himself and of- I’m mystified by clams in broth with fers me a piece.So fresh.Given these clots of tomato and white beans set triumphs, the listless corn and clam in front of me: “What is this?” Until chowder is a surprise. I taste it.“Oh, my God,” I cry.“This No one really wants dessert after is amazing.” Everyone looks up, such excess, but I insist. My “just startled. How fresh can clams be? one”sundae with homemade marsh- How perfectly cooked? Tomato mallow needs more chocolate and tang playing against a lush, sweet the peanuts toasted so they’re not so broth—olive oil glazed by a last soggy. gloss of butter, with slivers of fennel There’s a reason the food is so and chunks of chorizo.Now all of us shockingly good. At the door, we are onto the drift of deliciousness. meet the chef, Nick & Toni’s veter- Farmed salmon from Scotland an Paul LaBue.He reminisces about with a tamarind glaze is delicately rar- cooking alongside Jonathan Wax- ish,its bland sweetness showing well man, learning from the laid-back on a swirl of garlicky noodles and master. Now he’s enjoying Mon- topped with a frizzle of slivered snow tauk-folk ways.“Here,they bone the peas,shisho sprouts,micro pea shoots whole fish themselves and don’t ask and carrot strings. “Seafood and to have the head cut off like they do chips” arrives in a basket on a tissue in East Hampton,” he says. of fake newsprint, with tartar sauce The recently failed Laundry and decent fries alongside:two filets Restaurant on the highway was of cod and more splendid shrimp LaBue’s last stop, so the timing was and scallops than you’d expect for right when the partners here called. $20 in a delicious bubble wrap of Leyla Marchetto of Scuderia in slightly sweet and greasy beer batter. SoHo and her fiancé, Franklin Fer- Everyone is aggressively attack- guson, with Frank and Kristina ing a side of truffled macaroni and Davis, had talked of bringing in a cheese—cavatappi double loops in a chef from Napa. Now they realize rich sludge of Cabot cheddar, Dan- what a plus it is to have a Hamptons ish blue and Gruyère—arguably too veteran in the kitchen. I have to for- much cheese, I suppose, and the give chic when it’s this good. truffle is elusive (that’s a plus in my book). But the $10 bowl is huge, so Copyright © 2010 by Gael Greene. it’s just as well I’m forced to share. Syndicated by www.insatiable-critic.com.

June 14, 2010 | Crain’s New York Business | 27 Project1:fp template.qxd 6/4/10 1:12 PM Page 1

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