TOP STORIES LIVING Restaurants crack LARGE down on diners Entrepreneur who drink too much parties on his PAGE 3 ® penthouse deck Stewart Airport Page 34 will need some heavy lifting if it’s going to fly VOL. XXIII, NO. 7 WWW.NEWYORKBUSINESS.COM FEBRUARY 12-18, 2007 PRICE: $3.00 PAGE 9 The historic pursuit READY TO ROLL of diversity coming Foreclosure together for 2008 race TVpilots hit filings soar ALAIR TOWNSEND, P. 13 Voters oppose record number Spitzer’s plans for in boroughs health care cuts Production work fills studio stages; THE INSIDER, PAGE 14 state and city tax credits a big draw Crain’s revisits Loose mortgage- top entrepreneurs; BY MIRIAM KREININ SOUCCAR lending practices largest SBA-backed come back to haunt next month, Glenn Close will star in her first television loans in NY area pilot. She plays a famous litigator who works on high-pro- homeowners SMALL BUSINESS, P. 19 file cases in New York, in a still untitled legal drama for FX. The episode, to be filmed at Steiner Studios in Brooklyn, BY TOM FREDRICKSON is one of at least 10 pilots shooting in New York City this BUSINESS LIVES spring, a record number for the city. a rapid rise in foreclosure rates “We used to be lucky to get one or two pilots,” says Alan could cost thousands of mostly MEAN low- and middle-income New STREETS Suna, president of Silvercup Studios in Long Island City, Yorkers their homes. Tough calls Queens.“Now almost every one of our stages is spoken for.” The number of homes in fore- for parents See TV PILOTS on Page 8 closure rose 18% in the last six when city months of 2006 compared with the kids go out same period of 2005, according to on their own data from RealtyTrac. More wor- PAGE 31 risome is the fact that filings tabu- lated by Profiles Publications show buck ennis that 100 homes in both Brooklyn BAD DEAL: Mabel Robinson and Walter and Queens are entering the fore- Pagan refinanced their Brooklyn home closure process each week—dou- but now are having difficulty keeping up. ble the numbers of a year ago. “The numbers here are going AT DEADLINE QUIET ON THE SET up by the week,”says Jessica Davis, in the early 1990s.” NUMBER OF PRODUCTION DAYS IN NEW YORK CITY president of Profiles Publications, Though the increase in New TECHNOLOGY SALARIES IN THE which tracks foreclosure figures. York compares with a nationwide NEW YORK METROPOLITAN area 14,898 19,309 23,321 31,570 34,718 “The last time I saw it this bad was See LOCAL on Page 8 rose 4.7% last year to an 2002 2003 2004 2005 2006 average of $80,006 as the Source: NYC Mayor’s Office of Film, Theatre & Broadcasting sector continues to rebound, according to a survey by Dice IN FRONT OF THE CAMERAS: Glenn Close (left) and Brooke Inc., which runs a tech jobs Shields are starring in television pilots that will be shot in New York City in the next few weeks. Overheated market Web site.The salary hikes trailed increases of 5.7% in Silicon Valley and 7.7% in Los Angeles. threatens landlords

THE STATE IS SEEKING A NEW in city history. ADVERTISING AGENCY to Drive to buy means As it turned out, the sale price reinvigorate its “I Love New hasty due diligence, for 666 Fifth wasn’t a record that York” campaign.The account would stand for long. is held by Eric Mower and topsy-turvy returns The $7 billion spinoff of eight Associates, whose three-year of Equity Office Properties Trust’s deal expires in March. A New York buildings—part of The spokesman for Mower says BY JULIE SATOW Blackstone Group’s $23 billion ac- that the move was “not quisition of the real estate invest- unexpected” and that the firm real estate dealmaker Scott ment trust—is the latest capstone will likely bid for the new Latham knows what it takes to buy in a frenzied market. However, contract. Gov. Eliot Spitzer a skyscraper these days: Be quick concern is growing within the in- See AT DEADLINE on Page 2 on the draw, have a lot of cash and dustry that in the race to submit

gettyimages don’t sweat the small stuff. winning bids, too many potential “The people making deals in buyers are conducting only curso- this market aren’t dotting every i or ry due diligence.In addition,many ON THE WEB crossing every t,”says Mr.Latham, successful bidders are paying far Read Crain’s FORTY UNDER FORTY an executive director at Cushman more interest on their mortgages profiles and view video interviews & Wakefield Inc. His team bro- than they are generating in income ELECTRONIC EDITION online. An archive can be found at kered the $1.8 billion sale of 666 from their buildings. www.newyorkbusiness-risingstars.com. Fifth Ave. in December—the “It is absolutely worrisome,”

NEWSPAPER biggest commercial property sale See MARKET on Page 8 IN HIS COURT: After a long absence, George Ball has returned to AT DEADLINE the city as chairman of Sanders Morris, a Continued from Page 1 continue to dominate business Houston-based has proposed spending television. Says Gary Carr, investment bank that’s $16 million on marketing, director of broadcast at growing here. advertising and tourism in the TargetCast: “I don’t think the fiscal year beginning April 1, up world needs another business from $11 million. Mr. Spitzer channel. But I wouldn’t bet will not appear in the ads, unlike against [Fox News Chairman] his predecessor, George Pataki. Roger Ailes.” Mower is the 11th agency to run the famous campaign since CAFÉ ST. BARTS, THE it debuted in 1977. RESTAURANT at St. Bartholomew’s church on Park SHARES OF FORTRESS Avenue and East 51st Street, INVESTMENT GROUP, the first will get a $2.1 million hedge firm to go public, doubled renovation when Sodexho Inc. in their first day of trading begins managing the eatery in Friday, closing at $31. On April.The giant Gaithersburg, Thursday, the Manhattan-based Md.-based food service provider company raised $634 million by will upgrade the restaurant’s selling 34.3 million shares at interior—there is also an $18.50 each—the top end of the outdoor eatery—by adding air fund’s estimated range of $16.50 conditioning and other to $18.50 per share. improvements.The restaurant will likely be renamed when the THE ALLIANCE FOR THE ARTS IS renovation is completed DEVELOPING an online resource sometime in the fall. that will provide information about cultural nonprofits.The THE THURGOOD MARSHALL Citywide Cultural Database will ACADEMY in Harlem is set to feature economic impact and receive $5 million for a new

other financial data, as well as facility, the largest private buck ennis information about educational contribution ever for a public programs.The city is school in Harlem. The funds contributing more than will be donated by the Bradford $1.5 million to the project, which Swett Charitable Foundation will start operating in the fall. and distributed by the Abyssinian Development Corp. Ex-Streeter’s bounce MEDIA BUYER REACTION TO THE The money will pay for the LAUNCH of Fox Business construction of a state-of-the- Channel is ranging from art building—set to be George Ball’s back, unscathed by former firms’ scandals skeptical to intrigued. But given completed by 2010—with the success of Fox News enough space and resources to Channel, no one is saying that accommodate 325 K-6 BY AARON ELSTEIN CNBC and Bloomberg will students. ■ george ball, who ran Prudential-Bache Securities in the 1980s—when the brokerage firm perpetrated the biggest swindle in Wall Street history—is back. CORRECTIONS “I would have regretted it had Prudential marked the end of my career,” says the 67-year-old The Pfizer pharmaceutical plant recently slated to close is on Flushing Avenue in Brooklyn, on the Williamsburg/Bedford-Stuyvesant border. Its location was misstated in the Jan. 29 chairman of Sanders Morris Harris Group Inc., a Houston-based investment bank that is “Neighborhood Journal.” enjoying a growth spurt in New York. “I still enjoy playing the game.” Mai House is located at 186 Franklin St. The address was misstated in “Table Talk” on Feb. 5. Among bankers, brokers and regulators of a certain age, Mr. Ball’s name is instantly recognizable. He served as the No. 2 executive at E.F. Hutton from 1980 to 1982.Three years after he left, THIS WEEK IN CRAIN’S See EXECUTIVE RETURNS on Page 11

ALAIR TOWNSEND ------12

THE INSIDER------14 NEIGHBORHOOD Thriving local papers draw JOURNAL------15

WEEK IN REVIEW ------16 talks to buy the News Corp., others Bronx Times Re- REAL ESTATE DEALS------18 buy up community porter, sources say. 33 REPORT: SMALL The Bronx paper chains; will they puts out six editions BUSINESS ------19 lose local flavor? that target most of the borough. CLASSIFIEDS ------28 Neither the Post BY MATTHEW FLAMM nor the Bronx Times THE WEEKS AHEAD ------29 Reporter would com- BUSINESS LIVES------31 there is one corner of the news- ment. paper industry where circulation is “The Post’s weak- CORPORATE LADDER------33 rising, ad revenue is growing, and ness is that its sales tend to LOCAL NEWSPAPERS ------the Internet bears no relation to the LIVING LARGE 34 offer unique content and be concentrated in Man- grim reaper: weekly community advertising opportunities. hattan,” says newspaper EXECUTIVE MOVES------34 35 newspapers. analyst John Morton. BOB LAPE------35 “My display advertising grows “This is a way to expand 10% a year,”says Michael Schenkler, problems at the New York Post, its advertising footprint.” vol. xxiii, no. 7, february 12, 2007—Crain’s New York Business (issn 8756-789x) is pub- lished weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Period- publisher of the independently whose advertising has been slow to By some accounts, News Corp.’s icals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address owned Queens Tribune. “The con- catch up with the tabloid’s circula- recent acquisitions in the boroughs changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a tent in the community newspaper is tion gains. are already paying off,both for the lo- copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents not available on TV or the Internet.” The media giant swallowed two cal papers and the Post. The Queens copyright 2007 by Crain Communications Inc. All rights reserved. Now News Corp.is moving in on local newspaper chains in Brooklyn and Brooklyn papers now carry ads that local action as one solution to its and Queens last fall, and is now in for Cingular,an account the Post won

2 | Crain’s New York Business | February 12, 2007 Dining while drunk J-school going someone got drunk [to high demand.Mitchell Liability, license stop serving them],” Banchik, who owns concerns spur more Mr. Greenstone says. five restaurant-bars in “We are much more the city,including Mo’s digital eateries to pull plug cautious now.” Caribbean and Jake’s on the intoxicated Insurers are adding Dilemma, had all 180 to the concern. Many of his employees com- As print demand carriers now require plete a course taught by BY LISA FICKENSCHER alcohol awareness the New York State shrinks, programs training as a condition Restaurant Associa- when a group of 15 women guz- of underwriting liquor tion. stress Web work zling margaritas at Rosa Mexicano liability policies. “I wanted them to got a little too boisterous one be more aware of the BY SAMANTHA MARSHALL evening recently, co-owner Serious liability laws and liability is- Howard Greenstone took a step he the $105 million sues,” Mr. Banchik when faculty members of the might not have taken a few years judgment two years says. “We are under Columbia University Graduate ago: He cut them off, despite their ago against Aramark greater scrutiny.” School of Journalism got together tab, which was $400 and rising. Corp.,the concession- No one is more for their annual retreat last month, “They were livid, even belliger- aire at Giants Stadi- aware of that than the one topic dominated their conversa- ent, but I wouldn’t think about um,was a major wake- owner of Havana tion: the Web. changing my mind,” he says. up call for the Central at the West “This year in particular it’s really The decision to withhold alco- hospitality industry. End, a popular Co- come upon us,” says Nicholas Le- hol from tipsy patrons is becoming A driver who was lumbia University mann, dean of the prestigious increasingly common in both fine inebriated on beer he hangout with a long school. “There is a huge student in- dining and casual eateries as more had bought at a stadi- history of selling alco- terest and a chorus from our em- New York restaurateurs opt for pru- um event smashed hol to minors. ployers wanting more Web-savvy dence over profit. into another vehicle The New York graduates.” The city’s chilly attitude toward after leaving the park- State Liquor Authori- alcohol—spurred by violent inci- ing lot, paralyzing a ty was considering re- Getting on top of trends dents involving underage drinkers 2-year-old girl. voking Havana Cen- the city’s three graduate journal- at bars and nightclubs—is con- “Lawsuits with keen trevor tral’s license in ism programs are scrambling to get tributing to heightened vigilance at high settlements have escalated “We want the emphasis to be on perpetuity when restaurateur Jere- on top of digital media trends. restaurants ranging from the Flat- things,” says Frank Burns, former eating, not drinking,” says General my Merrin bought the business last They’re adding more relevant cours- iron District’s Rosa Mexicano to president of the New York Restau- Manager Brandon Bortles. year. es, hiring Internet gurus and re- Havana Central at the West End, rant Association, who teaches At Rosa Mexicano’s three Man- Mr. Merrin reassured the building their newsrooms with near Columbia University. classes on serving alcohol respon- hattan locations,patrons who order agency that he would operate the wireless multimedia platforms. Restaurateurs say the risks asso- sibly. three drinks in less than 90 minutes bar with a firm hand. He bought a CUNY’s Graduate School of ciated with serving patrons too Many restaurateurs are heeding are usually cut off. Servers are re- state-of-the-art ID-scanning ma- Journalism is leading the charge. Its much alcohol are greater today than the warning,despite the fact that al- quired to notify a manager when chine and expanded the menu to newsroom of the future, powered by even just a couple of years ago. cohol represents an average 20% of customers reach the limit. The transform the grungy spot into a Spots can lose their liquor license their profit—35% at Rosa Mexi- restaurants have also stopped serv- more serious dining establishment. more easily or be sued for ever cano. ing tequila shots at catered events. But police officers, both uni- PRICE OF greater damages if an overserved Pampano, a two-star eatery in formed and undercover, are fre- patron is then injured or injures midtown owned by chef Richard Training more important quent visitors. ADMISSION someone else. Sandoval and superstar tenor “what led us to this point is the “The truth is that I spent $3 mil- What’s more, the City Council, Placido Domingo, made changes frequency [with which] our guests lion renovating this restaurant,” $11,320 the New York Police Department last year to protect itself. Parties were becoming intoxicated,” Mr. Mr. Merrin says. “I have too much (state residents) and the State Liquor Authority are have a time limit of two to three Greenstone says. Still, at each loca- at stake,so we are very quick to stop stepping up their oversight of busi- hours, down from five, and hosts tion, at least one guest a week is de- serving someone alcohol.” $19,920 nesses that serve alcohol. must spend as much on food as they nied service. (out-of-state residents) “In prior years, you’d wait until do on alcohol. Alcohol server training is also in COMMENTS? [email protected] CUNY1 $32,000 Columbia2 like dailies, or they bleed them to 400 community papers, recently support the dailies,” says Michelle raised nearly $1 billion for acquisi- Rea, executive director of the New tions. And News Corp. remains in $33,000 big publishers’eye NYU1 York Press Association. the hunt for local papers all over the Rivals of the Post are already ar- city. Others are also looking. 1-Three semesters. 2-Two semesters. with their help—and archrival the Still, public companies like guing that it is increasing ad linage “We get queried not infrequent- Daily News appears to have lost. News Corp. have generally proven by offering the local papers at a ly by private equity groups that are Marc Kramer, chief executive of a bad fit with community weeklies, steep discount. In addition, the interested in local media,”says John state-of-the-art technology, is forc- the News, says it remains to be seen which operate on thin profit mar- Post recently gave the chains an in- Sutter, owner of Community Me- ing the other schools to catch up. whether Cingular will advertise in troduction to corporate life—fir- dia, which publishes The Villager New York University’s journalism the paper this year. The wireless ing 25% of the staff at Times and Downtown Express. department has scrapped its tradi- company spent more than $7 mil- ‘My display Ledger and 13 employees at News Corp. may have learned tional newspaper program, focusing lion in the News last year,according Courier-Life,including Caribbean from other companies’ mistakes. It on courses that emphasize subject to TNS Media Intelligence. advertising Life’s longtime publisher, on the has invested in its new properties, specialization, reporting and writ- The News has also reduced the same day. redesigning the papers and sharply ing over medium. Slightly behind print run of its Brooklyn and grows 10% Community newspaper insiders upgrading the printing. The com- the curve, Columbia is installing a Queens supplements, which say the firings put the chains at risk pany has also given contracts to the content management system and launched last year. a year’ of losing touch with the neighbor- former owners of the two chains, injecting more interactive elements “We’ve picked up quite a num- hoods they cover. “The flavor of who continue to operate them. into its curriculum. ber of significant accounts that the these papers depends on decision- “That was wise,” says Tom Al- Post has been able to place here— making in the community, and lon, president of Manhattan Me- New priorities and that the Post was able to get as [that connection] can’t stay the dia, which puts out nine local pub- digital media isn’t new to journal- a result of having Brooklyn and gins and have an intensely local, same if an accountant is in charge,” lications, including The West Side ism schools, of course, but only in Queens,” says Steven Blank, pub- hands-on character. Gannett Co., says the Queens Tribune’s Mr. Spirit and Our Town. “But it’s all in the past year have administrators lisher and former owner of Times for instance, launched a handful of Schenkler. the execution. We’ll see five years made it a priority.With hundreds of Ledger Newspapers in Queens. Westchester supplements to its But local media’s robust growth is from now whether [these acquisi- layoffs afflicting news organiza- News Corp. bought the chain’s 11 Journal News daily and ended up likely to continue attracting buyers. tions] were a great move or not.” tions—most recently Time Inc.— papers,along with the Courier-Life closing them. Rochester-based GateHouse universities must prepare aspiring chain in Brooklyn, in September. “[Public companies] run them Media Inc., which owns more than COMMENTS? [email protected] See J-SCHOOLS on Page 10

February 12, 2007 | Crain’s New York Business | 3 IN THE MARKETS HIGHLIGHTS REEL Starwood’s upside +0.4% at maximum capacity The Bloomberg/ “Starwood’s stock has performed will outgrow demand this year for the first Crain’s New Expensive p/e ratio great, but it’s got a pretty healthy multi- time since 2002. That extra supply is ex- York Index ple; I think names like Hilton are better pected to slam the brakes on room rate in- rose 0.4%, makes rivals’ shares to end the places to look now,” creases that had hit a better buy for now says Smedes Rose, an 11% last year. week at ➡ 393. The analyst at Calyon Se- Starwood is betting S&P 500 curities who rates that it can sidestep any BY AARON ELSTEIN Index fell Starwood “neutral.” problems caused by a 0.7%, The company’s glut by renovating pre- closing at he soaring average price of stock has appreciated mium U.S. hotels, such 1438. a New York hotel room— so much that an ana- as the Sheraton Man- more than $300 a night—has lyst at Thomas Weisel hattan, and making left travelers breathless. But Partners recently said deals to manage more such hefty rates are money in that any leveraged hotels overseas. Rev- RISERS Tthe bank for Starwood Hotels & Resorts buyout offer would enue-per-available 5-DAY 1-MONTH 3-MONTH CLOSING Worldwide Inc., owner of such presti- be unlikely to exceed room grew 15% last % CHANGE % CHANGE % CHANGE PRICE gious brands as Le Meridien, St. Regis, Starwood’s market year for Starwood’s ho- Primedia +16.3% +12.2% +28.7% $1.93 Sheraton and W. price. tels abroad, compared Net earnings at the White Plains Additionally, as a with 9% domestically. Avon Products +11.1% +15.4% +18.4% $39.06 company have soared tenfold since 2003, result of a building In 2006, Starwood Nasdaq +10.9% +10.0% +3.3% $37.20 and Starwood is aggressively expanding boom, the industry as posted operating Market cap $14.8 billion G III Apparel +10.3% +28.2% +56.3% $25.00 in fast-growing overseas markets. Mean- a whole faces rougher earnings of $607 mil- lion, or $2.59 a share, Cognizant Tech. +7.6% +17.6% +21.6% $92.35 while,it carries so little debt that investors going. At the end of Total debt $2.6 billion dream of the ultimate windfall: a lever- last year, 156,000 on revenues of about Trailing 12 months P/E 14.8 aged buyout at a fat premium. rooms were under $6 billion, according SINKERS The trouble is that all those positives are construction in the to Reuters Funda- 5-DAY 1-MONTH 3-MONTH CLOSING already priced into Starwood’s share price, United States—55% mentals. That com- % CHANGE % CHANGE % CHANGE PRICE which closed Friday at $66.96.The stock is more than a year earlier, according to Mr. pares with per-share operating earnings Warner Music -7.7% -14.6% -24.3% $20.15 up 37% in the past 12 months after adjust- Rose. Another 362,000 are planned. of $2.34 in 2005, on revenues that were NYSE Group -7.5% -12.0% +5.2-% $92.07 ing for a special per-share dividend of $13 Starwood, with 871 hotels and 266,000 essentially flat. in April. At this point, investors should rooms nationwide, has 145 hotels and Analysts surveyed by Reuters expect MasterCard -6.6% -2.0% +17.5% $103.60 think about checking their cash into an- 32,000 rooms in the domestic pipeline, operating results to slip this year,to $2.52 Assurant -6.5% -4.1% -3.6% $53.43 other hotel group. Starwood shares, which according to Deutsche Bank. a share, because it sold 28 hotels last year. JetBlue Airways -5.4% -15.1% -0.5% $12.92 trade at 27 times this year’s expected earn- Analysts at independent research firm ings, are expensive relative to their peers. CreditSights forecast that room capacity COMMENTS? [email protected]

STOCKS TO WATCH On-again, off-again rally in shares of home builders shakes Hovnanian’s foundations Two weeks ago, homebuilder Hovnanian rallied after a leading analyst called its shares a “buy.” Last week, investors had second thoughts, driving the stock down 5% in the first hour of trading on Thursday on news of sharply lower orders and plunging land prices from another builder. On March 1, Hovnanian is expected to post its own grim news: a 95% slump in earnings. The shares lost 7% last week. After a long run of robust health, C.R. Bard is suddenly looking a little sickly. A multiyear series of earnings gains ended late last month when the maker of catheters and other disposable medical devices reported a 73% drop in fourth-quarter earnings. Since then, the shares eked out a small gain on hopes that the hit was a one-off. The shares are up 32% in the last 12 months. In real estate these days, it pays to lose. Just ask shareholders in Vornado, who saw the value of their stock soar as much as 9% at one point last week after the real estate investment trust was outbid in the $23 billion contest to take over Equity Office Properties. Vornado emerged from the fray with its $2 billion cash hoard intact, and no end of cheaper acquisition candidates to spend it on. At week’s end Vornado was up 6%. charts: lindström bekka

4 | Crain’s New York Business | February 12, 2007 London.Fly to Then fly free* to Cancunor St.Croixor Hawaii or...

Now when you fly First or Business Class from JFK to London, you can earn a free* flight to anywhere American flies in the United States (including Alaska and Hawaii), Canada, Mexico or the Caribbean. Just register before you fly at AA.com/offers using promotion code AAJFK. Then, each time you travel round trip to Heathrow from February 1 through May 31, 2007, you’ll earn a free* flight. You can earn up to three flights total. Which means your trips to the U.K. that start out as business – could end up as pleasure.

*Free Award Ticket Taxes & Fees: The passenger and/or AAdvantage® member is responsible for all taxes and fees, including a Federal marketed codeshare and oneworld™ flights does not qualify for this offer. Award Ticket Terms & Conditions: Passenger traveling on tax of $3.40 per U.S. domestic flight segment per takeoff and landing; airport fees up to $18 per round trip in local airport charges; and award ticket may not accrue AAdvantage miles or earn miles toward elite-status qualification. Award tickets are valid for round-trip travel September 11th Security Fee of $2.50 per enplanement originating at a U.S. airport. For international/Puerto Rico/USVI destinations, within the United States (including Hawaii and Alaska) or between the U.S. and Canada, Mexico or the Caribbean on flights marketed additional taxes and fees up to $180 may apply. All award travel in conjunction with this promotion must be booked through AAdvantage and operated by American Airlines, American Eagle or AmericanConnection. Award ticket valid for travel from 2/1/07 to 5/31/08. Award Reservations at 1-800-882-8880 and requires payment of a $15 award-ticketing fee. This award cannot be booked on AA.com. Seats for ticketing must occur between 2/1/07 and 5/17/08. Changes to award tickets may be subject to a $100/145 CAD service fee. All changes award travel are subject to capacity controls and may not be available on all flights. Standard AAdvantage award terms and conditions must meet the restrictions applicable to the original booking. Once ticket is issued, travel must be completed by May 31, 2008, or one apply. Terms & Conditions of Offer: Fly one eligible round trip on flights marketed and operated by American Airlines between New York year from the date the ticket is issued, whichever comes first. Award certificate will be mailed to the AAdvantage member’s address that (JFK) and London (LHR) from 2/1/07 to 5/31/07 and earn a round-trip award ticket valid for Economy Class travel on American Airlines, is on file with AAdvantage Marketing Programs six to eight weeks after qualifying travel is completed. No stopovers or circle trips allowed. American Eagle® or AmericanConnection® within the United States (including Hawaii and Alaska) or between the U.S. and Canada, Mexico Offer subject to change without notice. Other restrictions may apply. Award travel must be booked at least 14 days prior to departure. or the Caribbean. Offer is restricted to residents of the U.S., Canada, Puerto Rico and the U.S. Virgin Islands. Passenger may earn up to a Maximum stay is 30 days. Award ticket is valid for travel in Economy Class and will be booked in “T” booking class. Seats are limited maximum of three round-trip Economy Class award tickets pursuant to this promotion. Offer is valid for travel on any purchased, published and may not be available on all flights or on all days of the week. Award ticket is not upgradeable. Award certificate is transferable but fare in First or Business Class beginning with F, J, A, D or I. To qualify for this offer, the JFK/LHR round-trip travel must begin and end may not be bartered or sold. American Airlines reserves the right to change the AAdvantage program rules, regulations, travel awards between 2/1/07 and 5/31/07. Offer applies only to new reservations booked between 1/31/07 and 5/31/07. Round-trip travel is defined and special offers at any time without notice and to end the AAdvantage program with six months’ notice. For complete AAdvantage as two one-way trips on nonstop flights between JFK and LHR, booked in a single reservation under one ticket number. To qualify, the program details, visit AA.com/aadvantage. Schedules subject to change without notice. A portion of all travel booked on American Airlines round trip must originate and terminate in New York (JFK). A maximum of one round trip is permitted per reservation. You must register may be operated by American Eagle or AmericanConnection. American Eagle is operated by American Eagle Airlines, Inc., or Executive for this offer prior to travel. This offer is not retroactive for travel taken prior to registration. Register online at www.aa.com/offers, using Airlines, Inc., which are wholly owned by American Airlines parent company. AmericanConnection service is operated by one of the following promotion code AAJFK. To register, you must be an AAdvantage member. If you’re not already an AAdvantage member, you can sign up independent contractors: Trans States Airlines, Inc., Chautauqua Airlines, Inc. or RegionsAir, Inc. AmericanAirlines, American Eagle, for a free membership online or when you call to make your reservations. Travel on flights operated by other airlines such as American AmericanConnection, AAdvantage, AA.com and We know why you fly are marks of American Airlines, Inc. Berlin Boston BuenosAires CitySpire Chicago NEW YORK,NEW YORK Frankfurt welcomes the following lease renewal and expansion edited by Valerie Block February 12-18 London LosAngeles Windels Marx Lane & Mittendorf, LLP Madrid represented by Rocker gets Artful food

Milwaukee Lewis Miller, Kenneth D. Rapp, presentation James Robbins and Paul Stimpfle of booked as wealthy buyers flood CBRE The Armory Show: The NewYork ans of guns n’ roses may International Show of New never hear a new album Art this month, those

NorthernVirginia from the defunct band, hungering for more than F the latest in modern but at least they’ll be able to read about their favorite legendary paintings will be able to nibble on fine cuisine. rockers. Paris Danny Meyer, the proprietor of Slash hallowed eateries like Union

Philadelphia Guns N’ Roses guitarist (right) just sold his autobiography Square Cafe and Gramercy Tavern, landed the catering gig to HarperCollins.The British through his year-old company, SanFrancisco for leasing information, please contact: born, California-raised ax man Todd D. Silverman Hudson Yards Catering. Megan Sheehan will work with writer Anthony Mr. Meyer has some Bozza experience feeding the art world.

SaoPaulo , who helped drummer and His restaurants at the Museum of carouser Tommy Lee pen his memoir, Modern Art have been a big hit, 212.715.0300

Seattle Tommyland. and Hudson Yards is the preferred The manuscript is due to be caterer for the institution. SiliconValley delivered in the fall. gettyimages At the show, to be held at Pier 94 from Feb. 22 to Feb. 26, Slash, born Saul Hudson, left Guns N’ Roses in 1996 Hudson Yards will set up a

Sydney following a split with group leader Axl Rose. He went on to restaurant, two cafés and two form the band Velvet Revolver. lounges, all called Cafe One, a WashingtonDC word play on Cafe 2 at MoMA. A HarperCollins spokeswoman confirmed Slash’s deal. The event “is an exciting Also in the works is W.A.R.:The Unauthorized Biography opportunity for us,” says Mr. of W.Axl Rose, by British rock writer Mick Wall.The book is Meyer, who hopes to generate due out in Britain in the fall and is currently making the more business from the arts for his fledgling catering outfit. rounds of New York publishers. “[Guns N’ Roses] is a great story, and it’s not finished Studio opens doors yet,” says Mr. Wall’s U.S. agent, Barbara Zitwer, referring to to children Weiser is pleased to announce that the unfinished album that Mr. Rose has been working on for years. pushy stage moms will have a chance to get their tots into a Gordon J.Weiss Sanctuary plans to hand out studio this summer. But much of Is Fairway’s leaflets every Sunday for months the emphasis will be on behind- goose cooked? to come in an effort to educate the-scenes action. & Stanley E. Ginsberg shoppers and convince them not Little Airplane Productions have joined the partnership. fairway has become ground zero to buy the pâté. Inc., which produces The Wonder in the war against foie gras. Even so, Mr. Glickberg vows Pets, Oobi and Go, Baby, plans to “Fairway drew attention to to continue selling the open its new studio to the public.

New York City itself ” when it hung a giant sign in controversial treat. “I think it’s The company just moved into 135 West 50th Street Gordon J.Weiss, CPA the store declaring the wrong to bow down to a fringe a 12,000-square-foot space in a New York, NY 10020 possesses more than 18 years of supermarket Foie Gras Central, group,” he says. 200-year-old former grain mill at Tel 212.812.7000 experience providing accounting, says Gene Mr. Baur plans other the South Street Seaport, allowing Fax 212.375.6888 auditing, tax, and consulting services, Baur, initiatives, including aligning with it to handle all functions in-house. particularly to multi-national and Long Island foreign corporations. Mr.Weiss deals president of prominent chefs and The studio will offer daily 3000 Marcus Avenue extensively with multi-national tax Farm restaurateurs. He hopes they will tours this summer, permitting Lake Success, NY 11042 issues, transfer pricing, and Sanctuary, condemn the sale of the goose and visitors to see every part of the Tel 516.488.1200 Fax 516.488.1238 long-term financial planning. In addition, Mr.Weiss a group duck liver, which is produced by production process, from writing has experience providing services to the real estate that began force-feeding the birds. Farm storyboards to recording Westchester industry and high net-worth individuals. protesting Sanctuary was among the programs.

660 White Plains Road istockphoto Tarrytown, NY 10591 Mr.Weiss can be reached at 914.517.7451. in front of plaintiffs in a lawsuit filed last “I think it’s really important Tel 914.333.0555 the market on West 74th Street June against the New York state that children understand how Fax 914.333.0556 and Broadway last Sunday. Department of Agriculture & television is made and what it is,” Stanley E. Ginsberg, CPA With statements on its sign Markets asking that foie gras be says founder Josh Selig,a Sesame New Jersey 399 Thornall Street possesses more than 30 years of like “We don’t care how many declared an adulterated food Street child actor who became a Edison, NJ 08837 experience providing tax, accounting, e-mails we get about how product. producer of that show. ■ Tel 732.549.2800 auditing, and consulting services to inhumane it is,” Fairway seemed Fax 732.549.2898 business enterprises and private intent on taunting activists as the clients. In addition to providing tax www.weiserLLP.com debate about the fatty food heated HAVING A HEAT WAVE? services to both for-profit and up. Chicago banned the French not-for-profit entities. Mr. Ginsberg delicacy in April. TIMES SQUARE ON BROADWAY between West 43rd specializes in providing estate planning services to and West 44th streets will be transformed into a high net-worth individuals and trusts and estate. Fairway co-owner Howard Glickberg says he took the sign tropical oasis on Thursday morning. Palm trees, Mr. Ginsberg can be reached at 914.517.7452. down before Christmas to avoid penguins and alligators will be flown in from Florida Weiser LLP controversy.“I understood that it to launch a $68 million nationwide print and TV advertising campaign to Certified Public Accountants probably offended a few people,” promote Orlando. Heaters will bring the temperature to around 70 degrees— he says. a nice break from the cold, but not an environmentally conscious move.

Too little, too late. Farm istockphoto

6 | Crain’s New York Business | February 12, 2007 “ I’d rather manage employee expectations than worry about an unreliable Internet connection.”

“Are we off on Arbor Day?”

Do what you love. We’ll handle the rest. Your business is your passion. It’s what you love. And keeping your business running at top speed is what Time Warner Cable Business Class is passionate about. Through our reliable, robust network, we deliver high-speed broadband Internet that lets you download large files at blazing fast speeds, improving business productivity and connectivity. In fact, Time Warner Cable Business Class offers consistently higher speeds versus DSL.* And as your business grows, we offer scalable, flexible solutions to meet your expanding needs, such as fiber-based Ethernet services and dedicated Internet access for multiple office locations. For all your data, video and security solutions, call 1-866-TWC-4BIZ or visit TWCBC.com today. Then get back to doing what you really love.

Products and services not available in all areas. Some restrictions apply. ©2007 Time Warner Cable. All rights reserved. *Based on Time Warner Cable Business Class standard maximum download speed of up to 8.0 Mbps versus the standard DSL business package maximum download speed of up to 7.1 Mbps. Actual speeds may vary. shoot a half-hour sitcom and $4 mil- much it would cost to film a project lion for an hour-long drama. Each here,” says Katherine Oliver, the TV pilots hit record number show employs upward of 100 people. city’s film commissioner. “What’s Having 10 pilots filmed in an eight- exciting is that New York is consid- Continued from Page 1 In the next six weeks,the city will into the world of high fashion—was week period represents a healthy pay- ered now.” The surge in pilots is part of the be flooded with TV hopefuls. They shot in New York, but when ABC day for the city. Michael Cuesta, Jr., co-writer, city’s film production boom in the include Cashmere Mafia, a Darren green-lighted the show, production director and executive producer of last two years,the result of a 15% city Star “dramedy” about four success- moved to Los Angeles. Tax credits drive boom Babylon Fields, a pilot that will be and state tax credit that went into ef- ful female executives in Manhattan; Still, New York’s studio execu- the tax credits—which offer a shot here in March, says Fox want- fect in 2005.Last year,the number of Lipstick Jungle, a series based on tives and production crews have 10% rebate on production costs in ed to shoot the episode in Los An- film production days on location in Candace Bushnell’s book starring reason to be hopeful. Last year a New York state and 5% in the city geles, but he convinced them to do New York City jumped nearly 10%, Brooke Shields; and Mayor of New whopping six of the eight pilots for projects that complete at least it in New York. breaking the previous year’s record. York, directed by Spike Lee. filmed in New York were picked up, 75% of the stage work in those loca- “It was really important to capture But production executives say including hit show 30 Rock, which tions—are the main engine of the that great Long Island,New York at- the increase in locally produced pi- No guarantee looks likely to have a long run.A TV pilot boom, film executives say. mosphere,” says Mr. Cuesta, whose lots is even more important,because of course,filming a pilot is no guar- show generally shoots from June Though New York is still a bit more show is about the dead coming back it improves the chances that New antee that it will get picked up,or shot through April and costs a minimum expensive than many other produc- to the town of Babylon, L.I., and York will be the home to more lucra- in New York if it does. In fact, eight of $44 million to produce, creating tion centers, many producers are wanting their lives back.“I shoot a lot tive long-term series, such as The out of every nine pilots produced end the closest thing to job stability in willing to pay a small premium to in California, and there’s sort of a Sopranos or Law & Order. up on the cutting-room floor, televi- the production business. film here because of the city’s high- generic look to everything there. I “When the pilots get picked up, sion executives say. What’s more, lo- “They can go on for years and be- quality crews and natural movie set- would have to shoot everything close it’s the opportunity for longer-term cally produced pilots chosen by the come an annuity,” says Mr. Suna, tings.The tax incentives narrow the up to avoid seeing palm trees.” employment and longer uses of fa- networks are sometimes moved to whose studio benefited from seven gap enough to make it worthwhile The tax credits made the budgets cilities,” says Hal Rosenbluth, pres- another city,because that’s where the seasons of Sex and the City and eight for productions to stay here. for the two locations similar enough ident of Kaufman Astoria Studios in talent lives. Last year, the pilot for of The Sopranos. “A few years ago, I would talk to for Mr. Cuesta to get his way. Astoria,Queens.“[Television] is the Ugly Betty—a sitcom about an ordi- Even the pilots create a windfall. studio executives, and they weren’t backbone of our business.” nary girl from Queens who tries to fit It typically costs around $2 million to even creating a budget for how COMMENTS? [email protected]

factors could spell disaster for some chovia requires that borrowers put landlords. several months’ worth of mortgage Market threatens landlords At issue is the differential be- payments in escrow. tween the return generated by a To minimize the risks, some Continued from Page 1 years,” says Norman Sturner, a co- building and the rate of its mort- cash-rich developers are beginning says Robert Verrone,a managing di- founder and principal of Murray UP, UP AND AWAY gage. to finance deals without taking out rector at Wachovia Securities, a ma- Hill Properties. “You need to be New York City office building sales, mortgages. L&L Acquisitions and jor lender.“The only way these deals quick and have your money ready.” in billions of dollars. Betting on rising rents partner General Electric Pension work is if there is sustained rent Late last year, Mr. Sturner beat as sale prices have risen, the re- Trust recently refinanced their growth; if that doesn’t happen,there out other bidders when he offered 2005 closed deals $20.9 turn on most Manhattan office tow- $450 million property at 2 Park will be issues.” SL Green Realty Corp. $550 mil- 2006 closed deals $34.8 ers has dropped to only 3% to 4%— Ave. using only cash. To compete, potential buyers lion for 1 Park Ave.after conducting the lowest levels in New York “Our institutional partners are must complete their due diligence due diligence for only 48 hours. 2007 deals in the works* $14.8 history. talking about using little to no lever- by the time they submit their first In this tough climate, the players *Through Feb. 9. Source: Cushman & Wakefield Inc. Meanwhile, mortgage rates have age in deals now,” says Robert bids. That means developers must with the biggest balance sheets and remained steady over the past few Lapidus, co-founder of L&L. dole out as much as $100,000 in up- appetites for risk are dominating the years, at roughly 6%. Most buyers Of course, most players are buy- front fees for the engineers, lawyers market. SL Green, the city’s largest Hidary, president of Hidrock Real- are betting that rents will continue ing office buildings with borrowed and financial advisers poring over commercial landlord, submits at ty Inc., has submitted 20 bids over to rise,increasing the income gener- money, even if the risks are great. the details of a building, before they least three or four bids a month,says the past 18 months and he hasn’t ated by buildings and reversing this “You take a hit when you first buy get any indication that they’re even chief investment officer, Andrew won a single deal. trend of negative leverage. a building,” says Murray Hill’s Mr. in the running to acquire the prop- Mathias. “The risk for a buyer has gone up The number of real estate trans- Sturner. “But as leases roll over, you erty. Buyers also must have suffi- significantly,” Mr. Hidary says. actions with negative leverage has bet that you’ll end up with a higher cient cash on hand to close within Busy bidders Given that the intense competi- ballooned over the past 12 to 24 return.” hours. smaller firms are having a tough- tion is continuing unabated, some months, according to Wachovia’s “I haven’t seen it this tough in 37 er time. Property owner Abraham insiders worry that risky underlying Mr. Verrone. To protect itself, Wa- COMMENTS? [email protected]

“The [lending] industry was ex- In many cases, homebuyers sim- ploiting customer ignorance and ply didn’t make enough money to Local foreclosure filings jump seizing the opportunities offered by qualify for the loans they got. The the skyrocketing real estate market,” rule of thumb is that the monthly Continued from Page 1 says Sarah Gerecke, chief executive housing nut should consume no surge of 45% in the same period, the NEW YORK CITY HOMES IN TROUBLE of Neighborhood Housing Services more than about 40% of borrowers’ jump in filings here is nonetheless a of New York City. income, Ms. Gerecke says. But some major setback. Until recently, many Of course, borrowers’ poor judg- loan brokers inflated clients’incomes considered the city immune to the ment also played a role. The combi- on their applications. problems of the softening housing nation was bound to end badly—as it For example, on loan applica- market. threatens to for Léone John. She had tions, babysitting jobs had a way of Even worse, the steep accelera- 18,328 22,439 a feeling that the $280,000 Staten Is- morphing “into day care businesses tion of lis pendens filings tracked by 2005 2006 land home she bought in 2004 cost generating $40,000 or $50,000,” Profiles Publications indicates that Source: RealtyTrac more than she could manage.But her says Oda Friedheim, a Legal Aid New York may be narrowing the gap. agent had been extremely helpful.He Society lawyer in Queens. Those filings are the first step in the persuaded the seller to reduce the Chances are the bank should foreclosure process that can lead to a bought a three-family house for sures in 2005 and 2006, when they price and introduced Ms. John to a have turned down Mabel Robinson forced auction in 12 to 18 months. $699,000, taking on $3,850 in rushed to extend lucrative high-in- mortgage broker who found a lender and her boyfriend, Walter Pagan, Worst hit are subprime borrowers, monthly payments. She is now one terest mortgages to subprime bor- to finance the entire purchase with when they wanted to refinance their those with spotty credit ratings. of 1,000 Brooklynites whose homes rowers. Nationally, such loans ac- two loans with total payments of less three-family home in Bedford- The national crisis forced sever- are in some stage of foreclosure. counted for 20% of all mortgages in than $2,300 a month. Stuyvesant last year. The couple al huge subprime mortgage lenders those two years, according to Inside traded in a variable-rate loan that to issue profit warnings last week, One of many Mortgage Finance. Multiple blows was adjusting upward at an alarming caused the shares of many to swoon in jamaica, Queens, Lillian Man- Many of the products seemed al- when the two-year freeze on rate for a 30-year, $485,000 balloon and prompted a congressional com- son got two letters late last year from most designed to land people in her interest rate expired in October, mortgage. Unbeknownst to them, mittee to call hearings into how her mortgage lender, HSBC, trouble. They included interest- her payments jumped 30%—to the income reported on their appli- those loans were made. threatening foreclosure. Even only loans; ones with interest rates more than $3,000. Additionally,her cation for that loan included sizable Carol David got the bad news though the bank agreed to cut her that adjusted upward quickly after ex-husband had stopped paying rents on two vacant apartments. two days after Christmas. Looking interest payments on the $340,000 an initial teaser rate; and “piggy- child support and she had under- “I realize we made a mistake,”Ms. out the window of her home in Bed- loan that she used to refinance her back” loans, which let people buy gone a costly medical procedure. Robinson says, who believes foreclo- ford-Stuyvesant, Brooklyn, she saw house and pay off credit card debt, with no money down and frequent- Ms. John, who is late with her Janu- sure is inevitable unless she gets help. a man walking up to her door with a she knows she’s on the edge. ly without proof of income.The end ary loan payment, is worried. “I just wanted to save my house.” summons. Experts say lenders planted the result: Thousands of New Yorkers “I don’t want to go to a shelter Less than a year earlier, she had seeds of the city’s spike in foreclo- bought homes they couldn’t afford. with my kids,” she says. “I can’t.” COMMENTS? [email protected]

8 | Crain’s New York Business | February 12, 2007 Port Authority will struggle to get Stewart Airport to fly

the look and feel of a relic of a sim- freeway exit off Interstate 84, which Aging facility needs pler age of air travel. promises to shave 20 minutes off updates, expansions; “I usually say our airport is a lit- driving time,will open by the fall.In tle old, a little tired,’” says Chuck addition, baggage screening areas top priority will be Seliga, the airport’s president. “We and parking will be expanded in improving access have a lot of improvements we want three to six months. to make.” For New York City residents,

however, Stewart won’t be a viable adler arnold BY HILARY POTKEWITZ New terminal could take 2 years option any time soon. At present, LONG WAY TO GO: Remote Stewart International must attract more airlines and passengers. the port authority estimates the the only way to get there from the as of last month, Stewart Inter- airport can handle 1.5 million pas- city is to take Metro-North from national Airport has been officially sengers a year currently. The agency Grand Central to Beacon—a 90- senger count in recent memory,with adding a total of 10 flights per day. touted as a sort of Newark Airport plans to add an international termi- minute journey—and then take a three airlines serving a mere If the current trend continues, the North—a fourth site to alleviate nal, but that could take two years. 15-minute cab ride to the airport. 300,000 passengers. That marked a airport is likely to triple its passen- pressure on New York’s other, badly In the near term, the Port Au- The Port Authority has mentioned sharp drop from 2004, when seven gers to 900,000 this year. overcrowded facilities. thority will probably try to improve the possibility of a high-speed rail airlines served 526,000 passengers. “We expect to become a very The Port Authority of New York links from upstate, Con- link, but that could be a strong regional airport, and the in- & New Jersey plans to purchase the necticut and northern New decade away. Airlines absent tent is to become an international Stewart lease for $78 million in a Jersey—areas expected to 1.5M “No one’s delusional “if we have the flights, I can fill airport,” says Mr. Seliga. deal that could close by the spring. provide the bulk of the pas- NUMBER around here,” says a Port Au- them,” says Tanya Vanasse, general That’s big talk for a facility The agency has reportedly already sengers. About 11 million of passengers thority spokesman. “We manager of marketing for the air- whose only other brush with fame Stewart can set aside $150 million for a 10-year people living north of the handle in its know where the airport is.We port.“These airlines left or went out came in 1981, when the 52 Ameri- expansion of the airport, located 60 city used New York’s three current state don’t expect to draw people of business, and I can’t sell seats on can hostages who had been held in miles north of midtown. Renova- metro airports last year, ac- from midtown Manhattan.” planes I don’t have.” Iran for 14 months were flown to tions could begin as early as the fall. cording to the Port Authority. It In recent years, Stewart has In December, Stewart’s fortunes Stewart. A brass plaque bearing all Much needs doing. hopes to shift many of those cus- struggled as airlines reduced service. started to bounce back. Discount of their names marks the airport’s With just eight departure gates, tomers to Stewart. Delta Air Lines and Independence carriers JetBlue Airways and Air- entrance. A giant star is still painted two baggage carousels, one fast- “It’s going to be tight,” says Mr. Air abandoned Stewart in late 2005, Tran Airways, lured by a rich pack- on the tarmac where they first food shop—a Quizno’s—and an Seliga. a result of their bankruptcies. age of financial incentives put to- touched American soil. ocean of nearly empty linoleum, The airport already has several Those cutbacks hit Stewart hard. gether by federal and local Stewart International Airport has projects in the works. A $58 million Last year, it posted its lowest pas- authorities, began using the airport, COMMENTS? [email protected]

THE 21ST-CENTURY GT. SUPERCHARGED POWER. RANGE ROVER SPORT CONTROL.

THE GRAND-TOURING VEHICLES OF THE PAST CAST A LEGENDARY ROMANCE Complementing a 4.2-litre, 390-hp, OVER LONG-DISTANCE TRIPS. TODAY, THE RANGE ROVER SPORT FURTHERS supercharged V8 THE LEGEND BY MASTERING SURFACES FEW OTHER GT’S COULD. WITH A engine is a double- wishbone Electronic UNIQUE COMBINATION OF HIGH-PERFORMANCE DRIVING DYNAMICS, REFINED Air Suspension (EAS). It provides maximum An impressive performance STYLING AND LAND ROVER CAPABILITIES. A GRAND TOUR OF YOUR OWN wheel contact with outside deserves an equally the ground on uneven impressive interior. The luxurious BEGINS WITH A TEST DRIVE AT YOUR LOCAL LAND ROVER RETAILER. OR terrain, allowing for the interior envelopes you in comfort perfect combination and amenities that make any long VISIT LANDROVERUSA.COM. of power and control. tour feel relaxing and invigorating.

©2007 Land Rover North America, Inc.

RANGE ROVER SPORT DESIGNED FOR THE EXTRAORDINARY

February 12, 2007 | Crain’s New York Business | 9 J-schools get with new media Continued from Page 3 ate and graduate journalism pro- held steady at about 120 students. journalists and midcareer profes- grams is increasing. Columbia’s journalism school limits sionals for such seismic shifts. “When there’s something new to enrollment to about 200 students “These are going to be the guys learn, people want to learn it,” says for its Master of Science program.It who reinvent how journalism oper- Stephen Shepard, dean of CUNY’s began offering a Master of Arts pro- ates in the world,” says Jeff Jarvis, a school and former editor in chief of gram for in-depth reporting in media critic who joined the CUNY BusinessWeek. 2005;33 students enrolled.The pro- IN DEMAND: Columbia Dean faculty as head of the interactive The weak job market and cuts at gram is expected to grow to 40 stu- Nicholas Lemann journalism program. “That’s why I newspapers and magazines are also dents next year. says, “Employers decided to teach.” prompting journalists to go back to want more Web- Surprisingly, all the bad news school for additional training, Mr. Must have a Mac savvy graduates.”

about shrinking news operations Shepard says. cuny, which launched its program in buck ennis hasn’t dampened the enthusiasm of CUNY’s degree program started a 40,000-square-foot wireless news- the next generation of media profes- last fall and has 51 students; it ex- room on two floors of the old Herald can’t graduate without taking interac- To accommodate rising enroll- sionals. pects to enroll about 75 in the fall of Tribune building, requires all stu- tive journalism courses and learning ment and new needs, NYU expects Enrollment in both undergradu- 2007. NYU master’s program has dents to have a Mac laptop. They how to package stories for the Web. to move to a refurbished facility at 20 Cooper Square by the summer. Twice the size of its current head- quarters, the location will have Wi- Fi access and cutting-edge comput- er and broadcasting equipment. Meanwhile, Columbia has reached the halfway point of a $100 million capital campaign and has plenty of money to spend on technology. Last month, it launched the Punch Sulzberger Executive News Media Leadership Program to teach managers how to build sus- tainable business models for Inter- net-based journalism. The school also created the post of assistant dean for technology and plans to “Webify”—Mr. Lemann’s term— the basic skills course. Students go interactive “my goal is that you cannot get out of this school alive without having done some Web production,”he says. Students don’t need convincing. CUNY student Jacci Leslie, 33, planned to concentrate on print,but the interactive course she took in her first semester made her realize that digital media offered greater reach. She now wants to write community news blogs focused on poverty in Brooklyn. “This program gives me the tools windows, windows and to be independent, and that’s where I see myself,” says Ms. Leslie, who is windows of OPPORTUNITY one of the 40% of CUNY journal- ism students who had decided by their second semester to take the in- teractive track.

COMMENTS? [email protected]

CRAIN’S ARTICLES STORIES CAN BE REPRINTED, POSTED ONLINE CRAIN’S OFFERS REPRINTS of published articles. Contact Lori Does your business require a productive work space, corporate Noffz at Reprint Management Services, (717) 399-1900, ext. branding and a convenient commute for your employees? 104, or [email protected]. Readers wishing to make The 89,725 contiguous available SF and full- and partial-floor opportunities ranging from 5,779 to 17,945 SF at 2 Rector reprints or post a story online Street provide an accessible and functional business environment for the discerning tenant seeking an image-enhancing must pay $350 to use Crain’s presence in an expanding market. copyright; nonprofits pay $195. Send a letter describing how the article will be used and a check FOR LEASING INFORMATION CONTACT: to Jill Bottomley at Crain’s, 711 Third Ave., New York, NY 10017. Frank A. Cento (212) 709-0745 Mitchell L. Konsker (212) 841-7626 [email protected] [email protected] For more information, call Ms. Bottomley at (212) 210-0282.

10 | Crain’s New York Business | February 12, 2007 continuing expansion of its money management business, which over- Executive returns; scandals distant memory sees $12 billion in assets. Given that Mr. Ball has a stake of Continued from Page 2 come a better manager of people Sanders Morris managing directors down from net earnings of nearly $11 nearly 5% that’s worth $12 million, the now-defunct firm pleaded guilty over the years.Nevertheless,Sanders served as directors. Sanders Morris million the year before.The drop was he has a major interest in Sanders to 2,000 counts of mail and wire Morris—like his other firms—finds warns that the costs of defending it- due to losses in Sanders Morris’ en- Morris’ success. While most former fraud in a check-kiting scheme that itself in trouble with regulators. Last self in litigation could be significant. ergy-stock portfolio and an ill-timed CEOs his age are playing golf or occurred during Mr. Ball’s tenure. year,the National Association of Se- bet on bonds. The firm hired 30 tending to their vineyards, he’s After Hutton, he moved to Pruden- curities Dealers warned that it plans Profits at risk bankers and traders from a rival firm spending time on the road courting tial-Bache as chief executive. to discipline the firm for a variety a stiff regulatory fine or a cost- to expand into bond sales and trading new clients. Mr. Ball hoped to turn Pruden- of violations, including improper ly legal settlement could send the firm early last year, but the team generat- Ever the optimist, he believes tial into a top-tier retail brokerage. commission payments to a hedge into the red. While most Wall Street ed so little revenue that most of the that all will work out well at Sanders But those ambitions crashed when fund manager. Mr. Ball, through a firms are minting money and posting executives were let go in the summer. Morris and that his long career will regulators charged that the compa- spokesman,describes the regulatory strong stock price gains, Sanders Mr.Ball points to several areas in end on a pleasant note. ny had defrauded hundreds of thou- matter as “routine stuff.” Morris’ profits fell by more than half which Sanders Morris has growth “If you work thoughtfully and sands of customers by misstating the The firm also may be sued by in- last year, and its shares slipped 21%. potential.These include diversifica- honestly,” he says, “there’s nothing risks involved in investment part- vestors who are unhappy with the The firm generated estimated net tion from its core energy business to fear.” nerships sold by brokers. Prudential performance of a 2005 private income of $4 million in 2006 on into sectors such as pharmaceuticals paid restitution and penalties total- placement for a company that two about $170 million in revenues, and telecommunications, and the COMMENTS? [email protected] ing $2 billion—the costliest settle- ment ever for a brokerage. Although he was never charged with wrongdoing at either Hutton or Prudential, Mr. Ball resigned from Prudential in 1991 and all but vanished from Wall Street. Today, Mr. Ball is resurfacing as the chairman of Sanders Morris, a small 20-year-old firm that’s trying to build its clout in the nation’s fi- nancial capital. Although Sanders Morris has struggled—it was just about the only U.S.brokerage whose profits and stock price fell last year—it has added dozens of invest- ment bankers over the past couple of years, and a fifth of its 558 employ- ees are based in Manhattan. The unlikely re-emergence of Mr. Ball, who visits the city twice a month to drum up business, high- lights one of the rules of Wall Street: Even players who suffer the worst setbacks can make comebacks. “Ball was never tagged personal- ly with any of the problems that be- fell Hutton or Prudential, and he has a lot of friends, so he’s still plen- ty viable in the business,” says Richard Lipstein, a principal at ex- ecutive recruiting firm Boyden. Hello, Houston mr. ball owes his career resurgence to his tennis buddy Don Sanders, a former Hutton colleague. Mr. Sanders called shortly after the Pru- dential debacle and offered Mr. Ball the job of chairman at his fledgling Sanders Morris. Mr. Ball moved to Texas, sold his Park Avenue apart- ment for $3 million and started over. His revival rests largely on the fact that people like working with him. At Prudential, he was famous for taking employees to Paul Stuart to buy them expensive suits, and writing thousands of odd but en- dearing staff memos known as “Ballgrams”—including one that famously read, “Losses suck.” “He is a great communicator, a great motivator of people, and has a photographic memory,” says Paul Scura, a former Prudential invest- ment banking chief. “He can re- member you, your kids’ names, even your dog.” Mr. Ball, who started his career in the 1950s as a New York Stock Exchange clerk earning $45 a week, says his optimistic outlook has sometimes blinded him to the defi- ciencies of his subordinates. “I wish I had seen the flaws in the people who created the unsuccessful partnerships [at Prudential],” he says. “I do regret that.” He’s confident that he has be-

February 12, 2007 | Crain’s New York Business | 11 VIEWPOINT The next Albany confrontation editor in chief Rance Crain publisher Jill R. Kaplan ast week brought two stunning develop- pendent panel to choose candidates for the post, which EDITORIAL ments in New York politics.The Demo- opened up after the forced resignation of Alan Hevesi.The editor Greg David cratic Party won a resounding victory in a group picked three stellar nominees, all with extensive experi- managing editor Richard Barbieri projects editor Cynthia Rigg special election for a Long Island state ence in government finance and pension oversight. But the deputy managing editors Valerie Block, Senate seat, and the Legislature made a Assembly Democrats were offended that none of their mem- Erik Ipsen columnist Alair Townsend brazen decision to choose an unqualified bers who wanted the job were chosen.They revolted; Mr. senior reporters Aaron Elstein, assemblyman as comptroller. Silver bowed to their wishes and was supported by Mr. Bruno. Lisa Fickenscher, Matthew Flamm, Tom Fredrickson, Samantha Marshall, Gov. Eliot Spitzer has promised to fix Albany. After last Mr. DiNapoli has no experience relevant to this crucial job. Anne Michaud, Julie Satow, week, it’s abundantly clear that the reform process will be The next steps are clear.The Democratic victory on Long Miriam Kreinin Souccar L reporters Barbara Benson, Elisabeth Butler, messy.The popular new governor will find himself squaring Island spelled the beginning of the end for Mr. Bruno’s 33-29 Erik Engquist, Amanda Fung, Hilary Potkewitz, off against not only the state’s leading Republican—Senate hold on the Senate. One possibility is that two members of Gale Scott restaurant critic Bob Lape Majority Leader Joseph Bruno—but also Democratic the GOP will bolt to art director Steven Krupinski Assembly Speaker Sheldon Silver. the Democratic Party. deputy art directors Carolyn McClain, At stake: an Daniel Mednick No one should forget what is at stake: an end to special in- A more likely scenario staff photographer Buck Ennis terest groups’ domination of the Legislature and public policy. end to special is the retirements of copy desk chief Wendy Zuckerman copy editors Michele Arboit, Leslie Jay, On Long Island, Mr. Bruno recruited health care workers interests’ sway two aging Republican Thaddeus Rutkowski union 1199 SEIU and the Greater New York Hospital Associ- senators clinging to research editor Denise Southwood associate research editor ation to fund the campaign of the Republican candidate. In in Albany seats in districts heavily Adrianne Pasquarelli return, they expect Mr. Bruno to work to defeat the populated by Demo- www.NewYorkBusiness.com online editor Catherine Tymkiw governor’s plan to sharply reduce subsidies to hospitals. crats—forcing special online reporter David Jones

Mr. Spitzer put his political prestige on the line for the elections that Demo- EDITORIAL AND ADVERTISING OFFICES Democratic candidate. His popularity helped spur a large crats will win. 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 turnout and forced some traditional Bruno allies, such as the But the dethroning of Mr. Bruno would eliminate only advertising: 212.210.0259 Cable craincom nyk teachers union and trial lawyers, to sit the race out.The one of the roadblocks. In the Assembly, Mr. Silver claimed Fax 212.210.0499 result was an easy victory for the Democrat. that the standoff over the comptroller’s post was an isolated Entire contents ©copyright 2007 Crain Communications Inc. All rights reserved. Mr. Spitzer, and the large number of New Yorkers who incident, and that he would support the governor on most ®CityBusiness is a registered trademark of MCP support him, won that round. By contrast, the good guys lost other issues. Mr. Spitzer obviously disagrees as he escalates Inc., used under license agreement. in the selection of Assemblyman Thomas DiNapoli as state his attacks on members of the Assembly. TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. comptroller. Originally, Messrs. Silver and Bruno had reluc- A bigger confrontation is inevitable.The governor will $3.00 a copy, $59.79 one year, $109.79 two years. tantly bowed to pressure from Mr. Spitzer to allow an inde- need the help of everyone in New York who wants change. www.NewYorkBusiness.com ADVERTISING AND MARKETING advertising director Vanessa Cognard business development manager Robert N. Grossman LETTERS TO THE EDITOR senior account managers Holly A. McKeown, William E. Squitieri account executives Andrew Carlin, Derek Reese, Jennifer Siniscalchi, Brigitte Stieglitz western account manager Building green saves a lot of green Ellen Mazen (Los Angeles) 323.370.2477 sales manager, classified SEEING THE BIGGER $185,000 to retrofit the property; and over 2,200 nationally that are Overall Economic Development print & online John Gallagher GREEN PICTURE the projected annual energy cost registered and await certification. Corp. and Nyserda. newsletter product manager savings is $250,000. Going green seems to The office of the Bronx Catherine Evans Gittens sales coordinator, print & online the story “NYC developers resist james gill exemplify the adage that “one can borough president and BOEDC Lulé Haznedari the push to go green” ( Jan. 29) Chairman do well by doing good.” have funded a number of sales coordinator Anita Perrino doesn’t represent the sentiments of Hugh L. Carey john e. osborn successful projects, including a credit Pat Grondziak 313.446.6082 the construction community. In- Battery Park City Authority green roof on Bronx Borough Hall marketing coordinator Jill H. Bottomley stead, it represents the sentiments (the first NYC government assistant circulation manager CATCHING UP Michael Holowchuk of those who are reluctant to incur GOING GREEN WITH OLD TECH building to have one), the 43,000- initial green costs and don’t appre- NOT SO HARD square-foot Mount Hope general manager, interactive ciate the environmental, medical green building is not a new Community Center and the Marc Minardo and financial benefits.Their developers who find it hard science. Green roofs have existed Presbyterian Senior Services NEW YORK PRODUCTION approach represents yesterday’s to create a favorable “green” pro in Germany for over 50 years, and Grandparent Family Apartments. production and pre-press director thinking. Green is tomorrow’s. forma may need to choose their technologies for energy-efficient As more developers use green Michael Corsi Today’s off-the-shelf green builders and design professionals HVAC systems have been around building technologies, costs will advertising production manager technology offers developers a more strategically and examine the for decades.Though the field is decrease and standards will be Marilyn DeMilta wide variety of products to protect variety of incentives offered. still growing, a number of more developed. PUBLISHED BY CRAIN COMMUNICATIONS INC. the environment while saving It is also worth noting that resources are available to james rausse chairman Keith E. Crain money. Costs are nearly always though there are only a few recent- developers through such groups as Housing and Community president Rance Crain recouped within the first several ly completed green-certified build- Association for Energy Development Planner secretary Merrilee Crain treasurer Mary Kay Crain years in the form of lower energy ings in New York City, there are Affordability and Community Office of the Bronx executive vp, operations William Morrow bills and higher rents. hundreds of buildings in the state Environmental Center, Bronx Borough President senior vp, group publisher Gloria Scoby Goldman Sachs is building a group vp, technology, circulation, 2 million-square-foot LEED manufacturing Robert C. Adams (Leadership in Energy and vice president/production & WHAT’S COMING UP IN CRAIN’S? manufacturing David Kamis Environmental Design) gold corporate circulation director project at Battery Park City. Patrick Sheposh Recently, the New York Mer- Real Business Small Spring Largest estate of law business residential hospitals founder G.D. Crain Jr. (1885-1973) cantile Exchange at Battery Park chairman Mrs. G.D. Crain Jr. (1911-1996) City became the first building to report report report real estate guide in the NY area be designated LEED-EB (existing Feb. 19 Feb. 26 March 12 March 19 March 26 buildings). It cost Nymex

12 | Crain’s New York Business | February 12, 2007 AVAILABLE IMMEDIATELY FOR SUBLEASE

By November 2004, 76% of blacks in Mississippi were regis- 23,500 RSF tered.The 1965 law was also signif- PART11TH FLOOR icant for Hispanics, who had been denied the vote by similar means. American women won suffrage in 1920, but it took the women’s 15 0 movement of the 1960s for them to win elected office in serious numbers. EAST In the 88th Congress (1963-65), there were only 14 women, includ- 42ND ing two senators.By the 109th Con- STREET gress (2005-07), the number of women had risen to 83,including 14 senators.That body now looks more Executive offices in excellent condition like America. For blacks, the figures were five Furniture available Institutional quality ownership and no senators in the 88th Con- Light on four sides Financially strong sublessor gress and 43, including one senator, in the 109th Congress. Hispanic Immediate accessibility to Grand Central Terminal and subways representation had grown to 29 by the 109th Congress. EXCLUSIVE SUBLEASE AGENT Before now, black and women For more information contact:

john h.john howard candidates for president ran largely Charles Borrok Josh Kuriloff Alex Cohen symbolic campaigns. Pat Schroed- Vice Chairman Executive Vice President Director er,Shirley Chisholm,Jesse Jackson, (212) 841-7550 (212) 841-7894 (212) 841-5927 Al Sharpton and Carol Moseley Braun did not expect to win. But they gave voice to people who felt A long journey voiceless, made powerful state- ments about inclusionary politics and raised issues of particular con- to moment of pride cern to women, minorities and the poor to the debate. These and other candidates feel jubilant. I have won the trifecta—or rather, the helped pave the way for Ms. Clin- ton, Mr. Obama and Mr. Richard- country has. For the first time in our history, we have a son. With these three, however, we woman, an African-American and a Hispanic candi- are moving beyond sex, race and date for president. ethnicity. What is even more significant for me is that Sen. While Ms. Clinton, Mr. Obama and Mr.Richardson are not running IHillary Clinton, Sen. Barack Obama and Gov. Bill Richard- as representatives of a group, they son are not running merely as symbols. Each of them has a are of course attracting support- ers—and detractors—because of real chance to win. been made in my life- their gender, race or ethnicity, as I’ve had so many time. I remember well as their policy views and elec- dispiriting discussions vividly the passage of tability.Ms. Clinton faces questions over the years about the Voting Rights Act from some diehards about her fit- whether a woman, of 1965. That measure, ness to be commander in chief, Mr. black or Hispanic will which ended literacy Obama about whether he has the ever be president of the tests, poll taxes and experience to lead the country, and United States. When other barriers to vot- Mr. Richardson about his fund- the talk was of women, ing, is one of Lyn- raising prowess. my friends and I won- don Johnson’s greatest None of these candidates may dered how England,In- achievements. prevail. It is far too early to predict dia,Israel and even Pak- ALAIR In March 1965,only the winner. istan could have women TOWNSEND 6.7% of blacks were But let’s pause and reflect. Look leaders, when the registered to vote in around at a world in which sectari- prospects here seemed Mississippi. It was an strife and degradation of women dim, even laughable to some. dangerous for them to sign up in are rampant.Take pride in this mo- I marvel at the progress that has most of that state. ment in our history.

CRAIN’S ONLINE POLL DO YOU SUPPORT LEGISLATION THAT WOULD BAN LISTENING TO AN iPOD WHEN CROSSING THE STREET? MOST OF THE 121 POLL RESPONDENTS It doesn’t .10% No, the object to the measure, which would matter; people government is will do what overstepping impose a $100 fine on violators. More they want .14% its boundaries than half think the government is stepping 55%. in where it doesn’t belong; a fifth say Yes, it’s a 21% . No, people people should simply look both ways safety issue should look before crossing the street. Just 14% support both ways the ban, and 10% think it’s irrelevant.

For this week’s question: Go to www.NewYorkBusiness.com/poll to have your say.

February 12, 2007 | Crain’s New York Business | 13 to spurn the party in the future. UPHILL CLIMB Voters oppose cuts Builder one-ups GOV. ELIOT SPITZER IS TOURING THE STATE to build support for the centerpiece THE INSIDER Columbia plan of his budget plan—$1.2 billion in health care cuts in order to finance a boost by Erik Engquist and Anne Michaud in education spending. A Crain’s New York Business poll suggests he has a lot in a move that could put the City of convincing to do. Planning Department on the spot, A solid majority—52%—of New Yorkers oppose his plan, while just 36% Nick Sprayregen is applying to build a favor it. Some 29% “strongly oppose” the idea, while only 13% “strongly mixed-use development on five favor” it, according to a survey of 600 registered voters across the state Spitzer gains most from L.I. Senate properties he owns within the area conducted by Charney Research from Jan. 22 to Jan. 25. where Columbia University wants The survey suggests that New York is fertile ground for a $15 million ov. eliot spitzer is the big winner after last week’s to build a second campus. advertising campaign from well-heeled health care workers union 1199 SEIU, state Senate race on Long Island in which Democrat Mr. Sprayregen, who needs a the Greater New York Hospital Association and others that stand to lose zoning change, wants to build money and oppose the cuts. Polling by the hospital association and others Craig Johnson (below) defeated Republican Maureen housing for people with a range of also shows strong opposition to health care cuts in general. G incomes, along with retail and O’Connell , narrowing the The Crain’s poll indicates that the governor will have an easier time rallying GOP hold on the Senate to storage facilities. He owns Tuck-It- Away Self-Storage in the public support for his plan to allow another 150 charter schools. The original 33-29.The governor was so neighborhood and says he wants to law allowing such schools authorized 100, and the cap has been reached. involved in the campaign remain at his current location. Some 53% favor increasing the charter-school cap. Just 35% oppose the idea. that he proofread Mr. Columbia officials won’t rule Mr. Spitzer’s predecessor, George Pataki, also tried to lift the cap but was stymied by opposition from teachers unions and the Democrat-controlled Johnson’s campaign out using eminent domain land- taking power to dislodge neighbors Assembly. But Mr. Spitzer expects to find traction in the Assembly’s base, literature. and construct science and art New York City, where 64% support the creation of more charter schools and Mr. Spitzer gains facilities on the 18 acres.The only 24% oppose the idea. Suburbanites also liked the idea, while opinion strength to take on big university’s own rezoning upstate was evenly split, with 44% for and 44% against. application was due at year’s end Cut Medicaid to help schools? Allow more charter schools? budget battles in Albany, but has been delayed. such as the fight over health Strongly favor 13% Strongly favor 25% ap images care spending cuts. Somewhat favor 23% Somewhat favor 28% The Working Families Party, which broke with Senate Musical chairs Somewhat oppose 23% Somewhat oppose 13% Strongly oppose 29% Strongly oppose 22% Republicans to endorse Mr. Johnson along with private-sector in Assembly Don’t know/no response/ Don’t know/no response/ unions 32BJ, RWDSU, CWA and UFCW, also comes out on assemblyman vito lopez is said refused to answer 12% refused to answer 13% the right side. to be a leading candidate for the Percentages may not add up to 100 due to rounding. Source: Charney Research Assembly Environmental The most obvious loser is New York Hospital Association, Conservation Committee Senate Majority Leader Joseph which backed Ms. O’Connell. She chairmanship, which became appointment. times a week, sometimes to the Bruno, whose lead could disappear had vowed to fight Mr. Spitzer’s available Wednesday when Thomas If Mr. Lopez got the job, he airport and other times to the if one or two of his aging budget cuts. DiNapoli resigned to become state would have to give up shelter where she worked as a Republican senators retires or if Another loser is the comptroller. chairmanship of the Housing volunteer.The Police Department Democrats succeed in persuading Independence Party, which broke Mr. Lopez, who organized Committee.That would improve declined to comment. two Republicans to switch parties. with Mr. Spitzer—whom it backed support for Mr. DiNapoli, is on prospects for renewal of the 421-a But equally damaged are health for governor—to side with Ms. good terms with Speaker Sheldon property tax program in the care union 1199 and the Greater O’Connell. Mr. Spitzer is certain Silver, who will make the Legislature. Mr. Lopez had Local professor threatened to derail it. critiques mayor fred siegel, a Cooper Union Slow growth professor and Rudy Giuliani biographer, says that the local press to cost state seats has gone soft on Mayor Michael new york is likely to lose two Bloomberg and that the national congressional seats after the 2010 press corps won’t be as kind if he I switched to Census, according to a recent runs for president.

SM analysis by Lake Ridge, Va.-based On education, says Mr. Siegel Polidata Inc. (below), the mayor can show no The Right Light With an expected 1.8% gain in improvements in the classroom residents from 2000 to 2010, New since taking over the struggling York would rank fifth from the public schools. Last month, Mr. bottom in population growth, Bloomberg even reversed course on ahead of only Ohio, West Virginia, school governance, giving school Massachusetts and Michigan. principals more power after nearly The biggest gainers are likely to include Texas, with four more seats, and Florida, with two more seats. Florida also will probably surpass New York as the third-most- populous state. Who’s driving

Ms. Kelly? five years of centralization. But Brought to you by the New York Energy $martSM Small Commercial Lighting Program “nypd confidential,” a weekly hardly anyone criticized the move. online column penned by former “The press here has bought his Newsday police columnist Leonard PR,” Mr. Siegel says, who adds that Levitt, is reporting that Police the city has a public-sector payroll As a small business owner, I do what I can to stay competitive. That means finding ways to be more efficient, Commissioner Ray Kelly had it can barely afford, is overly The Right LightSM since I juggle multiple tasks every day. That’s why I chose . By installing energy-efficient detectives chauffeur his wife for dependent on Wall Street to lighting, I reduced my electricity bills and created a more pleasant environment for my employees and nearly five years. balance its budget and may be customers. And because efficient lighting lasts longer, I can spend less time worrying about maintenance. The practice stopped only losing out to other cities as a global Now that’s an investment I can stand behind. recently, Mr. Levitt writes, after the financial headquarters site.

SM outcry over former state A spokesman for the mayor says The Right Light Better lighting, better business. Comptroller Alan Hevesi’s use of a that Mr. Siegel’s critique is To learn more, call toll free 1-866-698-8177 state driver for his wife. unsurprising, since the professor or visit www.therightlight.org. Mr. Levitt quotes anonymous has been “100% negative” since Mr. sources who say that Mr. Kelly’s Bloomberg took office. “Consider wife requested rides up to four the source,” the spokesman says. ■

14 | Crain’s New York Business | February 12, 2007 NEIGHBORHOOD JOURNAL

molish the downtown mall to take advantage of a 2004 rezoning to Mets make pitch to Asian community build a much larger, mixed-use project. “For Koreans, Japanese proach to this community. “There would be more fans if we had The land is owned by the city, Reaching out to fans and Taiwanese, baseball is The Amazin’s set up a a Taiwanese player,” says Mr. Fu, which will get a cut of the sale price. in nearby Flushing; No. 1,” says Fred Fu, kiosk last year at the who can rattle off the name of every The city must approve whatever is president of the Flush- Flushing Mall, a pre- Taiwanese player in the AAA built on the site. Brooklyn mall faces ing Development Cen- dominantly Chinese league. Thor purchased the low-rise re- future as high-rise ter. “Not as much for shopping center, to sell Do the Mets have their sights on tail complex and an adjacent three- mainland Chinese, but T-shirts, hats and other any such players? level parking garage for a reported interest is growing.” team gear. It has been a “As the business side, I can’t dic- $25 million in 2001, made some ast month, the Yan- The Mets marketing success, led by sales of tate to the baseball side which play- renovations and gave it a more ele- kees hit a home run with department has been the Mr. Met plush ers to sign, but I think they appreci- gant name. the Asian community developing relation- doll for $12. ate that this is important,” Mr. When offers for the property when the team an- ships with local “That was a Howard says.“When visiting teams surged past $100 million last year, nounced that it would Chinese-language total surprise,” have Taiwanese or Korean players, however, it became clear that its fu- Ldispatch a delegation of coaches and publications, in- says Dave there’s a visible increase in atten- ture would involve more than just managers to Beijing to spread the cluding World Howard, dance from those communities.” another face-lift. gospel of baseball to China. Journal and Sing executive —hilary potkewitz The new zoning allows for a But the Bronx Bombers are way Dao, for a year. vice presi- structure of 1.4 million square feet, behind their crosstown rivals. The The team is also dent of business opera- including residential units, offices Mets have been aggressive about in talks to open tions for the Mets. The Fulton St. mall set and ground-level commercial space. forging ties with the Asian commu- Chinese food stands at Shea team initially had to A hotel has also been contemplated nity for years, starting with their Stadium this spring. scramble to keep the for the wreckers for the site. neighbors in Flushing, Queens. Last season, the Mets shopping center the gallery at Fulton Street, a Thor Equities principal Joe Sitt The effort began in the 1997 sea- sold more than 5,000 stocked with the Brooklyn mall better known by its at one time envisioned building a son, when the team designated the tickets to local Asian item, which does former name of Albee Square Mall, 60-story tower on the property. first home game in May as Asian groups—most of them MR. MET plush doll. not sell nearly as has been sold for about $125 million Lately,however,he has been focused Night, to kick off national Asian Chinese—for Asian Night,up from well anywhere and appears destined for the wreck- on an ambitious plan for apartments Heritage Month. 2,000 in 1997. Taiwan Night drew else. ing ball. and a Vegas-style amusement park The Mets added Korean Night 7,500 fans, up from 1,700 in 2003. “They sell more Mr. Met dolls Sources say that Thor Equities in Coney Island,near his home.The to the schedule in 2002 and Taiwan According to team market re- than we do here at Shea Stadium,” reached an agreement last week to Gallery at Fulton Street has suffered Night in 2003. The evenings in- search, an estimated 60% of Queens Mr. Howard says. sell its lease, which has more than in the meantime. The food court is clude a pregame cultural show from residents are Asian; nearly two- Leaders in the Chinese commu- 70 years to run, to Acadia Realty gone, and its lower level is pock- the featured country and offering thirds of that population is Chinese. nity have their own ideas about how Trust and its development partner, marked with vacancies. food from local restaurants. The Mets are still honing their ap- the Mets can score in Flushing. P/A Associates. They would de- —erik engquist

What if every business trip paid off?

Free Amtrak® travel Free upgrades Free ClubAcela® passes

As your employees earn points on every trip, your business can too. Points toward free Amtrak® travel, free upgrades and free passes to ClubAcela®. It’s easy to earn points with over 120 trains daily in the Northeast Corridor to meet your business travel needs.

Enroll your business for free at Amtrakguestrewards.com/forbusiness

Amtrak Guest Rewards for Business program members will earn a 25–40% Point Match Rate of each individual company traveler’s base Amtrak Guest Rewards® rail points. A minimum of five company travelers is required, each of whom must be a current Amtrak Guest Rewards member. Businesses should have an anticipated Northeast Corridor annual Amtrak ticket spend of at least $5,000 to enroll. Program points will only be matched on Amtrak travel booked through Amtrak.com or Quik-Trak self-ticketing machines. Only Northeast Corridor travel (Acela®, Metroliner®, Regional, Keystone, Empire Service and Downeaster trains) is eligible, including all city pairs. Visit Amtrakguestrewards.com/forbusiness for full program terms and conditions. Amtrak, Amtrak Guest Rewards, Acela, ClubAcela and Metroliner are registered service marks of the National Passenger Railroad Corporation.

February 12, 2007 | Crain’s New York Business | 15 WEEK IN REVIEW

ECONOMIC SPOTLIGHT NYSE bars NBC promotes ex-specialists Zucker to CEO the new york stock exchange NBC VETERAN JEFF ZUCKER barred two former trading specialists—Myles Gillespie of (right) was named president FleetBoston Financial Corp. and and chief executive of NBC Thomas Verdiglione of Van der Universal. As CEO of NBC’s Moolen—for cheating investors by trading ahead of customer television group since 2005, orders and improperly stepping in Mr. Zucker oversaw between those orders. Mr. programming and Gillespie, who was president of distribution operations, FleetBoston Financial, was fined $125,000. which account for two-thirds of the company’s overall Starrett City deal profits. He is credited with the owners of Brooklyn’s revamping the network’s Starrett City struck a $1.3 billion comedy lineup and for deal to sell the subsidized-housing deciding to hire Meredith complex to Clipper Equity.The deal was blasted by housing Vieira to succeed Katie advocates, who are concerned that Couric on The Today Show. the price tag will force the new He succeeds Bob Wright, owners to raise rents. who will stay on as a vice chairman of NBC parent NY Mortgage Trust General Electric Co. sells retail unit

Economy Watch ap images new york mortgage trust inc. NYC’s unemployment rate stayed below 5% in December, coming in under the agreed to sell its retail mortgage U.S. figure. The area’s inflation rate edged up after three months of declines. Viacom music unit SEC probing banking business to Pasadena, NOVEMBER ’06 DECEMBER ’06 COMPARISON marketed by UBS insider activity Calif.-based IndyMac Bancorp for NYC jobless rate 4.5% 4.3% 4.5%1 $13.4 million.The sale includes viacom inc. hired investment the securities and exchange 32 New York Mortgage Trust 2 NYC employment change -2,300 -8,500 +45,900 bank UBS to explore a possible Commission, trying to determine retail mortgage banking branches NY area inflation change -0.4% +0.2% +3.3%3 sale, as well as other strategic whether Wall Street is passing in 11 states. 1-U.S. unemployment rate. 2-Change since December 2005. 3-Inflation rate for the latest moves, for its Famous Music insider information to hedge 12-month period. publishing unit. Famous Music funds, asked nearly a dozen controls more than 125,000 titles, brokerage firms for information Airport delays including music from movies such about their trading. The request delays at New York’s three chief as The Godfather and Forrest marks a new strategy in the airports worsened last year due to NYC Hotel Stats Broadway Stats Gump. agency’s “street sweep” probe into increased traffic volume. Newark Room rates crept up a few more Broadway houses overall were filled insider trading. Liberty International had the cents in December, while occupancy to just 73% of capacity in the week worst on-time arrival rates of the rates retreated, data from PKF ended 2/4, The League of Amer- Building boom 31 largest airports in the United Consulting show. The averages for ican Theatres and Producers says. the city issued permits for Watch the walk States, according to the U.S. 2006 were $271.08, vs. $242.89 a Jersey Boys alone played to houses 30,927 residential housing units state sen. carl kruger of Bureau of Transportation year earlier, and 85.5%, vs. 86.1%. that were 100% booked. last year, about the same number Brooklyn introduced legislation Statistics. as in 2005, according to U.S. making it illegal to use iPods and Census Bureau figures. The past similar devices when crossing city two years represent the busiest Verizon launching stretch for city construction since the permit data were first ESPN Mobile recorded in 1965. verizon wireless will relaunch ESPN’s shuttered cell phone service.The sports network, which Primedia buys failed in an earlier attempt to real estate site launch an ESPN-branded wireless LISTEN UP: Ban on business, will deliver sports scores, primedia inc., a publisher of crossing while news and video highlights to magazines and consumer guides, listening proposed. Verizon customers. acquired RentalHouses.com, an gettyimages online listing of rental properties, streets.The ban, if enacted into for an undisclosed amount.The law, would include cell phones, Cuomo sues Capital IQ’s Weekly Deals Report Web site will be linked to iPods, MP3 players, Gameboys Primedia’s Rentals.com, giving the and BlackBerries. Violators would over oil spill TRANSACTION SIZE company 62% of all paid online face $100 fines. new york state Attorney COMPANY (in millions) BUYER/INVESTOR TRANSACTION TYPE listings for small rental General Andrew Cuomo (below) Enzo Biochem Inc. $15.0 Institutional investor GCI apartments. plans to sue ExxonMobil Corp. Farmingdale, L.I. $2 million stunt and four other oil Serious USA Inc. $14.0 Greenhill SAVP, North Hill Ventures GCI turner broadcasting and companies to Manhattan S&P acquires Manhattan-based Interference force them to MPLC Inc. $6.5 Not disclosed GCI Marketing will pay $2 million to complete the Manhattan indexes state and local agencies in cleanup of a 17 GigaSpaces Technologies Inc. $5.0 The BRM Group, Intel Capital, GCI standard & poor’s plans to Massachusetts for a publicity stunt million gallon Manhattan FTVentures acquire the Goldman Sachs that caused a temporary shutdown spill in Laish Israeli Food Products Ltd. $3.7 G. Willi-Food International Ltd. SB M&A Commodity Index, a widely-used of the Boston public Greenpoint,

Brooklyn gettyimages benchmark for investments worth transportation system.The 10-city Brooklyn.The Selected deals announced during the week of Jan. 28 for companies headquartered in metro New York. GCI: Growth capital investment represents new money invested in a company for a minori- at least $60 billion, from Goldman campaign promoting a Cartoon 1978 spill left a massive ty stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing Sachs Group Inc. S&P also agreed Network show featured light underground pond of petroleum. shares of a company without the participation of a financial buyer. to buy the Goldman Sachs Sector boards that Boston officials —from staff reports and bekka lindström bekka and Technology indexes. confused with bombs. bloomberg news reports

16 | Crain’s New York Business | February 12, 2007 © 2006 FedEx.© 2006

Your future customers in Beijing are closer than you think. FedEx has all the tools you need to make international shipping easy. FedEx Express ships to more than 220 countries and territories worldwide, including over 200 cities in China. And whatever your shipping needs are, FedEx has a solution that lets you focus on the things that really matter — like growing your business. For more information, go to fedex.com. Relax, it’s FedEx.® REAL ESTATE DEALS W.Side calls to communications firm

it considered many buildings, Royal “The main obstacles were find- ker at Colliers ABR,who represent- Royal Impressions Impressions has settled on a 15-year ing a building that could accommo- ed the tenant. “This area west of takes floor on W. 34th; lease for the entire 33,000-square- date us on a single floor and could Penn Station will see tremendous foot fifth floor at 460 W. 34th St.,at handle the manufacturing equip- change over the next five years.” online retailer sets up 10th Avenue. ment that we use,” says Christopher Kaufman Management, which shop in East Village The new space, which has an DeSantis, chief executive of Royal owns the 500,000-square-foot asking rent of $25 a square foot, was Impressions, whose clients include building, represented itself in the digital marketing, attractive because it is less expensive Prudential Life Insurance and transaction. Other tenants in the communications and than Royal Impressions’ current American International Group. building include Robert A.M.Stern FUNKY LALA carries Anna Corinna bags. printing company is re- space and is contained on a single Companies “that are seeking less Architects, the National Institute locating to a larger of- floor. The company is spread across expensive space are being pushed to for People with Disabilities and fice space west of Penn two and a half floors in 25,000 the periphery of Manhattan and SBLI USA Mutual Life Insurance. East Village cheap APlaza. After a long search in which square feet at 1040 Sixth Ave. downtown,” says Brian Weld, a bro- —julie satow for fashion chic online retailer Funky Lala is opening its first store, at 422 E. Ninth St., between First Avenue and Av- enue A in the East Village. The company’s online retail site, www.funkylala.com, is known for selling fashion from independent designers such as Rebecca Minkoff and Geren Ford. “We’ll carry a whole lot more de- signers in the retail store,”says Lizzy Rosenshine, co-owner of the com- pany. Funky Lala Productions signed a 10-year deal for the 800-square- foot store. Part of the space will house the company’s offices. Real estate brokerage Besen Re- tail represented both the tenant and landlord 422 East Ninth. The area “is still very boutiquey and the rents are still very reason- able,” says Elliott Dweck, a Besen broker who worked on the deal.The asking rent was $75 per square foot. —elisabeth butler 2 firms moving into a classic I TRUST: CompUSA to keep two organizations are relocating to 500 Fifth Ave., a building designed in 1931 by Shreve Lamb and Har- my technology mon,the architectural firm responsi- ble for the Empire State Building. Construction firm Dragados USA running. and the asset management arm of the Collegiate Church have signed leas- es that total 13,600 square feet. The Trust CompUSA to provide the technology services that you need when and where you need them. Our national asking rent for the higher floors at 500 Fifth Ave., at the corner of West network of more than 10,000 TechPros is available 24/7 on-line or via phone, in any of our 229 stores nationwide, 42nd Street, is $80 a square foot. and offers guaranteed next day on-site service*. From the simplest memory upgrade to design and deployment of a Dragados USA, which is han- multi-site network our CompUSA TechPros are standing by. It’s like having your own IT department – except we have dling the East Side Access project, a 98% customer satisfaction rating. has leased 6,000 square feet, or the entire 38th floor. It is relocating from a smaller office at 60 E. 42nd St. Meanwhile, Collegiate Asset Management, which handles funds For more information on how for the 375-year-old Collegiate we can help your business, Church, has leased 7,600 square call 1.866.4CompBZ or visit feet, or part of the 17th floor. The tenant is relocating from 45 John www.compusabusiness.com. St., which the church recently sold to a developer who is converting it into residences. “We are very happy with these tenants;they are in keeping with the Technology services professionally delivered. Utilizing a nationwide repositioning of 500 Fifth Ave.,” network of more than 10,000 on-site and in-store CompUSA TechPros, says Sean Kearns, a broker at GVA we can install, maintain, and upgrade your business’ technology. We Williams representing the build- also have live technical support available online or on the phone 24/7. ing, which is undergoing improve- *Call 1-800-CompUSA, option 6, or go online by 3 p.m. local time to schedule ments.At the end of the month,the next day service. Certain conditions apply. Visit www.CompUSA.com/techpro building’s elevator cabs will be ren- for details. 37572 1/07 ovated,and by midsummer,the lob- by will be redone. —julie satow

18 | Crain’s New York Business | February 12, 2007 SMALL BUSINESS INSIDE LARGEST SBA-BACKED LOANS in the New York area PAGE 26 “When vendors are kept up-to-date, they feel they have a stake in the firm.” —Sarah Endline, Sweetriot, Page 25

HOW-TO 7 tips for Crain’s top finding entrepreneurs the right LAFAYETTE 148 PAGE 21 franchise revisited Interest in the field, since crain’s began its small business plenty of working awards in 1996, 66 companies have been capital are musts recognized for their success and for BY TINA TRASTER providing service to the communities in CITY THEATRICAL PAGE 22 ichard schragger loves franchises.In which they operate.The winners have less than three years, the 33-year- included a Bronx-based maker of Christmas old has acquired decorations, a Brooklyn-based baker of Rthree Subway restaurants in Manhattan. Now he’s eyeing a Papa John’s. pita bread and a Manhattan-based designer “The best thing about fran- chises is that the business of some of the most prominent skyscrapers model is in place,” says Mr. Schragger. “I take what’s in the city. proven and go by the book as MANIC PANIC PAGE 23 much as I can.” Some of those firms have gone What the franchisee con- WHERE tributes to that formula is a ARE THEY on to huge success, while others combination of cash, skill and sweat.“The only way to grow a NOW? have faded from the scene entirely. franchise is to understand the Pages 21-23 business inside and out,” says Some have been bought out and Mr. Schragger. “You can’t hire someone else to turn it into a expanded by larger rivals, and some have fled success.” Today, entrepreneurs look- ing to jump into franchising New York for cheaper climes. have thousands of options to WIRELESS GENERATION PAGE 23 choose from. They range from What follows are updates on 10 of those hotel chains to pet-grooming salons, each with its own dis- winners—firms that represent a rough cross tinct strengths and weaknesses. Here are some steps to take be- section of the group.They hail from four fore buying a franchise. See TIPS on Page 20 boroughs and work in industries ranging from magazine publishing and womenswear CHAIN LINKS retailing to dental-equipment manufacturing NUMBER OF FRANCHISES 2,500 and beverage making. SCHICK TECHNOLOGIES PAGE 21 NUMBER OF OUTLETS 800,000 NUMBER OF INDUSTRIES 80 INITIAL INVESTMENT 80% require less than $250,000 Source: International Franchise Association A. WILLIAMS TRUCKING PAGE 22 GLACÉAU PAGE 22 MASSEY KNAKAL REALTY SERVICES PAGE 23

February 12, 2007 | Crain’s New York Business | 19 REPORT

Right where Your Small Business needs us. HOW-TO Tips for franchisees

Continued from Page 19

STEP 1 Make sure the fit is there. Growing a business takes hard work – and a bank that works with you. would-be franchisees North Fork Bank has the solutions Your Small Business needs to succeed: should make sure that I Loans, lines of credit, merchant processing and other banking services they fit the bill. Accord- I Checking, money market and savings accounts ing to the old adage, I Cash management services – including an online cash management suite “Entrepreneurs reinvent I Investments, insurance and retirement services* the wheel; franchisees I Equipment finance services spin it.” They buy into a proven system and then PARTNERS – NOT JUST BANKERS. move it forward. Fierce- Working with North Fork also gives you something more – the services of a North Fork banker who’s committed to ly independent thinkers finding out where you want your business to go, and then developing a strategy for getting you there. make for lousy fran- * Securities are offered through NFB Investment Services Corp., a registered broker/dealer, member NASD/SIPC. Annuities and other types of insurance are chisees. Deviating from offered through NFB Agency Corp. Both are non-banking affiliates of North Fork Bank. Not FDIC Insured Not Bank Guaranteed May Lose Value products, services and Not a Deposit Not Insured by any Federal Government Agency business practices may cause conflict with the franchisor, violate the franchise agreement and even lead to termination.

STEP 2 buck ennis Your Small Business Right where needs us. Love it or leave it. RICHARD SCHRAGGER runs three Subway restaurants. To learn more, speak to a North Fork Bank representative people should look today. Stop by any North Fork Bank branch, visit STEP 5 for a franchise in a field that really Make sure piggy bank is full. www.northforkbank.com or call 877-694-9111. excites them. An affinity for the business will make success easier even in franchising, it still takes and long nights more tolerable. money to make money. Too many “I became a GarageTek fran- franchisees make their initial pay- chisee because I had [its storage ments only to close up shop several rack] system installed in my garage months later, when they are unable and I loved the product,” says John to cover their operating expenses. Catalono, owner of GarageTek “Have at least three months of Long Island in Syosset. “I looked at working capital, and have another food franchises, but I really wanted source of income for at least a year to own a business that would bring without worrying about putting BUSINESS BREAKFAST FORUM me satisfaction.” dinner on the table.That’s how long it typically takes to recoup an initial STEP 3 investment,”says David Kaufmann, Look over the field. a partner with Kaufmann Feiner Yamin Gildin & Robbins, a Man- one of the nice things about hattan law firm that has worked Please join us to hear New York City Schools’ franchising is that there are so many with many franchisors. concepts to choose from. Search the Chancellor Joel Klein discuss the mayor’s plan to International Franchise Associa- STEP 6 tion’s database, www.franchise.org, Dig deep. overhaul the school system, giving principals more which lists hundreds of franchise opportunities and offers step-by- once the search has been nar- power and stiffening requirements for tenure as step guidance for beginners Also, rowed to two or three franchises, ask visit Bison.com, an online shopping them to send their federally mandat- well as to equalize funding for individual schools. mall of franchise opportunities. ed Uniform Franchise Offering Cir- Check out Franchise Direct, cular.The UFOC contains informa- Crain’s He will be questioned by editor Greg David Joel Klein www.franchisedirect.com, to learn tion on the franchisor’s background Schools’ Chancellor, about events. Go to expositions and and management team. Hire a fran- and another journalist. New York City read franchise magazines and blogs, chising attorney to help analyze the such as bluemaumau.org. franchisor’s track record. In addition, ask present fran- STEP 4 chisees about the profit potential of Date: March 1, 2007 Cost to attend: the franchise and the kind of support $60 for individual ticket(s) if pre-registered Pay attention to risk factors. Place: Sheraton New York they receive from the head office. by February 22 (American Express, Visa or 811 Seventh Avenue MasterCard only); $70 thereafter franchising is less scary than And don’t forget to visit several fran- chises to get a feel for how they work. Time: 8:00-8:30 a.m. Networking Breakfast starting a business from scratch, be- $600 for table(s) of ten if pre-registered by cause franchising offers a brand 8:30-9:30 a.m. Program February 22; $700 thereafter name, an established mode of oper- STEP 7 ation, training manuals and more. Crunch the numbers. YOU MUST BE PRE-REGISTERED TO ATTEND THIS EVENT. ALL TICKETS ARE NON-REFUNDABLE. But there are still plenty of risks. To register go to newyorkbusiness.com and click on “Events,” or fax your business card Each buyer must put up his own cash have an accountant or financial and credit card information to “Klein Breakfast” at 212-210-0499. For more information, call for the license and then lay out more adviser scour the franchisor’s finan- the Events Hotline at 212-210-0739. for construction,inventory,advertis- cial statements. If a franchisor is ing, rent, utilities, and ongoing roy- growing the franchise too quickly or SPONSORED BY: alty payments to the franchisor. is relying on working capital from Meeting all those obligations isn’t franchise fees rather than royalties, easy. Make sure that the franchise is it may be a sign that the franchisor in a growing field and that it is locat- is undercapitalized. ed in a geographic area short on that franchise or similar ones. COMMENTS? [email protected]

20 | Crain’s New York Business | February 12, 2007 REPORT SMALL BUSINESS

Class of 1997 when it was snapped up sell Schick’s systems nationwide. In SCHICK for $7 million by Grey- 2004, Greystone cashed in its chips, Patented process TECHNOLOGIES stone Private Equity late relisting Schick on Nasdaq. that year. David Schick,who had remained key to survival REVENUES “We believed in the as a consultant since the acquisition, 1997 $2.8 million people and the technolo- left the company in June 2005. One ast year,operating profits at 2006 $70 million gy,’ says Jeffrey Slovin, year later, the company he had Schick Technologies came to EMPLOYEES the Greystone managing founded merged with a German- a tidy $25 million. That was director who took over as based leader in high-technology L 1997 35 considerably more than the compa- Schick’s chief executive. dental equipment. By that time, its ny’s total revenues—not to mention 2006 150 share price had jumped to $25.10 profits—in 1997,when it was recog- WHAT WORKED A new Big contract from an all-time low of 25 cents in nized by Crain’s. management team with a new manage- 1999. The real miracle, though, is not WHAT DIDN’T Getting relisted ment team in place and a The digital technology that so much that the company has on Nasdaq took five years fresh shot of capital on its David Schick patented years ago re- grown but that it has survived at all. PASS IT ON Find a merger books, Schick began to mains the key to the company’s suc- Founded by engineer David partner that can help revive. The new man- cess.With experts predicting that all Schick in 1992, the Long Island expand reach and sales agers cemented relation- dental radiography will ultimately City, Queens-based firm was ships with key staff engi- go digital,Schick’s potential is huge. among the first to bring to market a << JEFFREY SLOVIN took over when neers and pared back “The digital radiology market is dental X-ray system that records Schick was sliding toward bankruptcy. some sales and adminis- growing 15% annually,” says Steven

images in digital files rather than on adler arnold trative jobs. In a major Postal, a dental care research analyst film.In the early years,sales doubled breakthrough, in 2000 for Lehman Brothers.“This merger and redoubled regularly. In 1997, Two years later, however, the tion by federal regulators,and losing the new team signed a contract with creates a one of the biggest manu- Schick went public in an offering company was forced to restate its focus and customers, Schick was one of the leading distributors of facturers in the field.” that raised $34 million. earnings. Under investiga- WHERE slipping toward bankruptcy dental equipment, which agreed to —tina traster ARE THEY Class of 1998 company decided to swing NOW? $55 million, in 2006. Neiman Marcus. ly expanded its Manhattan head- for the fences by offering “We’re in the bridge mar- quarters, opened a 60,000-square- him a rich contract to sign ket, but our customers know Identifiable brand foot warehouse in Brooklyn, and in Designer keeps on as design director. us as a designer company,” says De- “lafayette 148 is very discriminat- 2002 started up a factory in Shan- The gamble paid off.Today, Mr. bra Clark, vice president of market- ing about who it sells through,” says tou, China. clothier in fashion Wilkerson is the face of the 11- ing. She notes that having a single former Escada President Gloria The successes of recent years n paper, there was no way year-old women’s clothing maker. recognizable name helps distin- Gelfand, who now runs a merchan- come after a difficult stretch in the that Lafayette 148 could re- His designs and his name have guish Lafayette 148 from its rivals, dizing and marketing consultancy late 1990s,when Lafayette 148’s op- Oally afford to hire a high- helped the company—which tar- most of which use teams of anony- in Manhattan. “And what the com- timism caught up with it.Sales fore- caliber designer like Edward Wilk- gets the bridgewear niche between mous designers. pany puts out is positively,exquisite- casts proved overly bullish, and the erson.But eight years ago,when Mr. the mass market and couture—in- Two years ago,the company made ly identifiable.” company was almost buried in ex- Wilkerson became available, the crease revenues nearly fourfold, to another big investment that paid To accommodate its growth, in cess inventory. off handsomely when it the last nine years the firm has huge- —steve garmhausen bought an Italian knit- LAFAYETTE 148 wear specialist. Previ- ously, Lafayette 148 had Class of 1999 dation contractor,”says Chief Exec- REVENUES relied on outside contrac- utive Dolly Williams, who co- 1998 $15 million tors to make its knitwear founded the firm with her ex-hus- 2006 $55 million line,which gave the com- Contractor gets band, Carl. “We want to move into EMPLOYEES pany less control over into development development.” 1998 35 quality and production Williams already has its foot in 2006 116 schedules. Since the ac- n the nearly eight years the water.Since buying the land and quisition, sales of knit- since construction contractor erecting its own 17,000-square-foot WHAT WORKED Reaching for wear under Lafayette A. Williams Trucking was headquarters in Park Slope, Brook- top talent at an early stage I 148’s brand names have tapped by Crain’s for a small busi- lyn,nine years ago,the company has WHAT DIDN’T Bad sales fore- shot up. They now ac- ness award, revenues have barely developed three small residential casts, poor inventory man- count for 25% of total budged and staffing levels have properties nearby—including a agement led to unsold clothes sales,compared with just nudged up only slightly. four-story apartment building with 15% in 2004. Those numbers mask much. In a ground-floor professional suite PASS IT ON Monitor invento- Revenues got anoth- recent years, the 27-year-old com- completed just last year. The com- ry closely and make adjust- er boost as Lafayette pany has quietly shifted its sights to- pany has assembled another site in ments as soon as possible 148 added Nordstrom ward becoming not just a builder, the neighborhood where it plans to << DIERDRE QUINN, IDA SIU AND and Lord & Taylor to but also something potentially far build an 11-story condominium in SHUN YEN SIU (left to right), the a list of major retailers more lucrative. the next few years. founders of Lafayette 148. that already included “We do not want this company The switch to development will

buck ennis Saks Fifth Avenue and to remain an excavation and foun- See A. WILLIAMS on Page 22

You lier. Based on round trip purchase, excluding taxes and charges. *

* from Call 877 FLYSILVERJET 6’3” flat bed. London $899 one way fly .com

February 12, 2007 | Crain’s New York Business | 21 REPORT SMALL BUSINESS

Continued from Page 21 fidence in certain vendors, Class of 2002 allow the company to more than including Ms. Williams,” A. WILLIAMS double its revenues within five years, Bob Sanna, executive vice Punk distributor Ms.Williams believes.In the mean- president of design, devel- TRUCKING time, profits continue to be plowed opment and construction REVENUES feels no stress into building a new business,instead for Forest City Ratner 1999 $15 million of toward growing the company’s Cos. 2006 About the same ike any other entrepre- existing lines. Managing multiple neurs, Tish and Snooky At the same time, in order to gain projects as well as the move EMPLOYEES Bellomo want their compa- 1999 25 L the project-management experience into development has been ny—a punk- and Goth-fashion necessary to become a self-sufficient hard, stressful work. Ms. 2006 30 distributor known as Manic Pan- developer, the company has pushed Williams says that she WHAT WORKED Patiently ic—to grow. to do more general contracting work. wishes now that she had laying foundation for move Unlike most, however, they’re in been quicker to hand over into development no particular hurry. In demand some responsibility to oth- That’s why Manic Panic, based WHAT DIDN’T Boss’s today, Williams earns roughly half ers—including her two reluctance to let others make in Long Island City,Queens, is not of its revenues as a general contractor children, who are now ex- decisions much bigger than it was when it for projects including a new business ecutives of the firm. Re- was recognized by Crain’s. That’s school for Medgar Evers College in cently, Mr. and Ms. PASS IT ON Learn to delegate also why the Bellomo sisters show Crown Heights, Brooklyn.The firm Williams divorced. Mr. responsibility no sign of, well, panic, or even continues to be in demand for its ex- Williams continues to >> DOLLY WILLIAMS’ company earns stress. cavation and foundation work. oversee field operations. half of its revenues as a contractor. “It’s not like we don’t want to get

“We have a high degree of con- —steve garmhausen buck ennis big,” says Snooky, a.k.a. Eileen.“It’s just that we’re [interested in] having a good time getting there.” Class of 2000 stopped trying to run In world of hard-driving entre- CITY THEATRICAL everything and instead preneurs dreaming of a rich buyout created three manage- or even a stock offering, the Bel- Profits take REVENUES ment positions to oversee lomos—onetime backup singers center stage 2000 $2.7 million manufacturing, engi- for Blondie—seem every bit as 2006 $4.6 million neering and sales. He countercultural as their company’s ary fails learned the hard EMPLOYEES also enrolled in Colum- Electric Lava hair dye or vegan way that great products 2000 20 bia University and boas. Galone can’t ensure a compa- 2006 35 earned an M.B.A.,which “We’re probably more reactive ny’s success. helped him recognize than proactive,” admits Snooky, In 1992, his Bronx-based light- WHAT WORKED Innovative that the key was growing who started the business with her ing design firm, City Theatrical technology, unique products profits, not revenues. sister 30 years ago as an East Village Inc., got off to a terrific start. By WHAT DIDN’T Founder’s lone- Over the last three boutique. “We’d probably drive 2000, annual revenues were ap- wolf management style years, those changes stockholders crazy.” proaching $3 million, and an in- PASS IT ON have yielded annual rev- Create a strong Seizing opportunities spired Mr. Fails had set a goal of advisory team early to help enue growth rates ap- tripling revenues by 2003. prevent strategic errors and proaching 20%, and in fact, most of the opportunities It didn’t happen. As orders grow the company faster profits have risen even as that the Bellomos have seized fell flowed in, Mr. Fails quickly fell be- the company has staffed into their laps. hind in filling them. His 5,000- << GARY FAILS plans to move City up. The changes have Last summer, the siblings square-foot manufacturing plant Theatrical to a larger plant. also allowed City The- opened a boutique in Los Angeles

was simply too small to meet de- buck ennis atrical to rebuild its rep- after their lawyer mentioned that a mand,including orders for the com- utation. space in a funky area was available. pany’s top seller—a well- and wide- to rekindle interest. nearly $1 million, the company cut “People have come to rely on Never mind that the sisters had not ly reviewed high-end device that “We had developed a good prod- 10 positions—40% of the total. him,” says Bill Groener, vice presi- operated a store since they switched directs spotlights by remote control. uct, but we didn’t have any way to dent of Production Resource to a mix of wholesaling and Web re- “We barely had a [manufactur- sell it,” says Mr. Fails.“We underes- Valuable lessons Group, an entertainment technolo- tailing 18 years ago, or that the ing] facility,” Mr. Fails says. timated almost everything it was “we were fighting for our life,” gy supplier in North Bergen, N.J. Venice Beach outpost is a long way No sooner had Mr. Fails geared going to take to grow.” says Mr. Fails, a former stagehand In April, Mr. Fails plans to cap from Queens. up manufacturing capacity than The knockout blow came in the who started City Theatrical with no his company’s rebirth by moving to After all, two years earlier the demand hit a wall.City Theatrical’s wake of the terrorist attack of Sept. business training. a new 40,000-square-foot plant in Bellomos had reached even farther star product lost its newness, and 11, when sales all but ceased. By then, however, the les- Calstadt,N.J.,where he will have al- when they gave the nod to someone the company lacked the sales staff Staggering under debt of WHERE sons had sunk in. Mr. Fails most three times as much space. See MANIC PANIC on Page 23 ARE THEY NOW? Class of 2001 us to compete at the same promotional handouts and healthful alternative. category,” says Gerry Khermouch, level as Coke and Pepsi,”says celebrity buzz—including “Tata’s investment in the compa- editor of Beverage Business Insights, Mr. Bikoff, who has grown Glacéau photos of a Vitaminwater-toting ny is an endorsement for the a trade newsletter. Drink maker tenfold since it received the Crain’s Paris Hilton—the firm put its strength of the brand and for the —tina traster floods market Small Business Award. drink on the map. To- The deal gives his Whitestone, day, 200 independent lacéau—the company Queens-based company the muscle distributors give Gla- GLACÉAU that pioneered the entire for a major international expansion céau products a nation- category of enhanced-wa- and the money it needs to continue al reach. REVENUES G 2001 $30 million ter drinks with its Vitaminwater— to innovate. “The success of the is by all measures a huge success. In That is something Glacéau did brand is that it’s a better 2006 $350 million just 11 years, founder J. Darius initially when it rolled out Smart- device,” says Mr. Bikoff. EMPLOYEES Bikoff has taken his company from water, a vapor-distilled water forti- “It wasn’t IBM that 2001 62 startup to a firm boasting a nation- fied with electrolytes. Unable to made computers easier; 2006 650 ally known brand and raking in an- land shelf space in major chains,Mr. it was Apple. It wasn’t nual revenues of $350 million. Bikoff took to the streets, persuad- General Foods that WHAT WORKED Putting vita- Rather than stop there, in Au- ing delis and upscale food stores to made coffee better, it mins in water and pioneer- ing niche of healthful waters gust Mr. Bikoff took his biggest give his drink a try. was Howard Shultz [of step to date. He sold a 30% stake to Starbucks],who went to WHAT DIDN’T Soywater, a Tata Tea Ltd., an India-based con- Persistence pays off Italy,had a decent cup of beverage that combined soy glomerate with revenues of $22 bil- two years later, he added what is coffee and redefined the protein and water, never lion and a stable of famous brands, today his best seller, Vitaminwater. category.” caught on including Tetley Tea and Eight The beverage has less than half the In a beverage indus- PASS IT ON Be quicker to O’Clock Coffee. The price? A cool sugar of Coke or Pepsi, is enhanced try dominated by car- adjust product line $677 million. with nutrients and comes in distinc- bonated sugar-laden << J. DARIUS BIKOFF’S Glacéau rakes “This deal assures that we main- tive bottles. drinks, Glacéau has po- in annual revenues of $350 million.

tain our independence but it allows Relying on sheer persistence, sitioned itself as the buck ennis

22 | Crain’s New York Business | February 12, 2007 REPORT SMALL BUSINESS

Class of 2004 WIRELESS Software firm GENERATION makes the grade REVENUES FY 2004 $23 million t the tender age of six, FY 2006 $25 million Wireless Generation has al- EMPLOYEES ready graduated from ele- A 2002 89 mentary school. Late last summer, the education 2006 230 software developer, whose pro- WHAT WORKED Developing grams are already used by more than products in collaboration 100,000 primary-school teachers WHAT DIDN’T Going it alone nationwide, rolled out e-tools de- PASS IT ON signed to aid instructors in middle Start off with space in Brooklyn and high schools as well.

buck ennis The programs, which run on << LARRY BERGER (LEFT) AND handheld computers, allow teachers GREG GUNN of Wireless Generation.

Continued from Page 22 MANIC PANIC to test students’ reading skills and buck ennis who wanted to open a chain of quickly tailor instruction to the Manic Panic stores under license in REVENUES needs of individuals through skill- aids to a service that helps school dis- what it has done since the very be- Japan, where there are now eight of 2002 $5 million building exercises. In another major tricts assess their teachers.The com- ginning: collaborating with outside them. 2006 Under $6 million departure, Wireless Generation in- pany has also assembled an eight- partners. The one thing that has always set EMPLOYEES troduced its first programs for teach- man marketing team and plans to “The company spends a tremen- Manic Panic apart is the sisters’deep ing mathematics last fall. double sales within two years. Chief dous amount of time talking to ed- 2002 20 roots in punk culture. 2006 13 to 20 (depending That potent combination of new Scientist Greg Gunn expects much ucators and researchers who help “They stay right on the edge,” on the season) products and new markets is expect- of that growth to come from ex- them figure out where the needs and says Ernie McCraw, director of ed to send Wireless Generation’s panding sales within school districts opportunities are,” says Margaret merchandizing for Sally Beauty, a WHAT WORKED Focusing on revenues up by 60% in the fiscal year the company already serves. Honey,vice president of the Educa- 3,000-store chain based in Denton, international expansion ending June 30, to $40 million. tion Development Center, a non- Texas. WHAT DIDN’T Trusting “Our business is getting broader Rent reduction profit, and a member of Wireless The sisters have no intention of manufacturer’s pledge to and deeper,”says Larry Berger,Wire- to prepare itself for this growth, Generation’s advisory board. going over that edge. make products exclusively less Generation’s chief executive. the company moved last summer to a A departure from its collaborative When their Japanese licensee re- for Manic Panic Since 2004, the company has 40,000-square-foot facility in Dum- approach proved to be a mistake. In cently proposed merging their two PASS IT ON Get everything gone on a hiring spree, more than bo,Brooklyn,from its hodgepodge of 2003,the company spent months de- companies, going public and then in writing doubling its staff.The increases have offices in Manhattan—and cut its signing software under a contract expanding quickly, the sisters said come as Wireless Generation has rent significantly in the process. with a publisher of educational ma- >> TISH (LEFT) AND SNOOKY BELLOMO no thanks. want Manic Panic to grow slowly. honed its menu of offerings, which In adding products, the compa- terials.The program never sold. —steve garmhausen spans everything from instructors’ ny has benefited by doing more of —steve garmhausen

Class of 2003 met as young brokers at Coldwell kers, he expects total sales this year Banker in 1988, still use the same to top $2 billion—enough to bring MASSEY KNAKAL approach they began with in 1998. in $55 million in revenues. Real estate They divide up targeted territories To help reach that goal, the duo is REALTY SERVICES broker takes turf into a series of small submarkets and investing heavily in training. Before REVENUES assign a broker to master each. Mr. going into their territories, brokers 2003 $11 million aul massey and Robert Massey calls it his Colgate-Palmo- spend three months boning up at 2006 $50 million Knakal, like the ancient Ro- live approach, which he boils down Massey Knakal University. They mans, believe that the key to to telling brokers: “There’s your study the marketplace and develop EMPLOYEES P 2003 30 power is turf. The more of it an town. Go sell soap.” negotiating and valuation skills.They army holds, the greater its might. also learn about ethics and religious 2006 200 By the time Massey Knakal Real- Big picture sensitivities. In 2005, the company WHAT WORKED Sticking to a ty services was recognized by Crain’s, jonathan miller, president of hired an educator from Cingular territory-based system the firm had already become the Miller Samuel Real Estate Apprais- Wireless as Massey Knakal’s first di- WHAT DIDN’T Trying to largest broker of small, undervalued ers, says that one of the best things rector of training. expand into less densely commercial properties in Manhattan about that approach is that it is “scal- The company’s founders contin- built-up markets and was just beginning to expand to able.” He notes that it can be used to ue to reject occasional offers to PASS IT ON the other boroughs. Since then, the conquer even the biggest markets. merge with larger firms. Switch to growth mode as soon as possible two men have led their firm into Currently, Messrs. Massey and “It’s important to control Westchester and Nassau counties Knakal have their eyes on northern growth, to make sure we don’t get << PAUL MASSEY (LEFT) AND ROBERT and sextupled their brokerage force. New Jersey. By working that new too big too fast,” says Mr. Massey. KNAKAL assign brokers to submarkets.

Messrs.Massey and Knakal,who turf and deploying an army of bro- —tina traster buck ennis

February 12, 2007 | Crain’s New York Business | 23 Go to newyorkbusiness-risingstars.com for photos, profiles and for the first time ever candid video interviews of the honorees. REPORT SMALL BUSINESS

particular designer—eliminating an aspect of online apparel shopping that frustrates buyer and seller Candy with a conscience HITS & MISSES alike. “It has significantly lowered arah endline thinks she can do for chocolate what our return rate,” says Ms. Stoner. Ben & Jerry’s did for ice cream: turn a guilty pleas- Fledgling firms’ key moves by Lisa Goff The Dress to a Desk service Sure into a product consumers can be proud of. promises customers who pay a “The market for socially responsible products was $20 fee that dresses ordered before expanding, but no one was doing candy,” 2 p.m. will be delivered to their comments Ms. Endline. Manhattan offices by 5 p.m. The entrepreneur, who founded Sweetriot in A dressed-case scenario on the Web E-mails and other queries from 2005, uses all-natural ingredients and is com- shoppers help guide product devel- mitted to fair trade. Her tiny tins of Tic Tac-sized oanne stoner started her fashion career as a opment. For example, “customers candies are available in more than 200 stores. Her staff of three full- buyer for Saks and went on to launch the told us they wanted dresses worn by and five part-timers, based on Houston Street, is working on new Elisabeth dress division for Liz Claiborne. celebrities,” says Ms. Stoner. flavors for 2007. Revenues were just under $500,000 last year. J Dresses inspired by the gowns worn Today, she says, the most intriguing at last month’s Golden Globes HITS merchandising opportunities are on the awards are slated to be available on Healthfulness, integrity as natural benefits Internet—and that’s where she opened her own eDressMe.com within a few days. ms. endline has sweetened her product’s appeal by emphasizing the health angle. Sweetriot candies use the crunchy inner kernel of the cacao dress store four years ago. MISSES bean—the nib—which is especially high in minerals and antioxidants. The site sells Ms. Stoner’s designs, as well Heading off the beaten track In addition, while many firms talk about partnering with their ven- as a mix of established and up-and-coming a spanish-language companion dors and distributors, Sweetriot has made it a priority.“When they’re designer labels. Her customers are women who site hasn’t taken off. Ms. Stoner kept up-to-date on what’s happening in the business, they feel like hopes that adding new categories— they have a stake in it,” says Ms. Endline. are fed up with trekking from floor at a NoLIta such as dresses for quinceañera, the to floor at Bloomie’s or Nordstrom, boutique, if not celebration of a girl’s 15th MISSES clutching a growing pile of clothing more.The site’s birthday—will increase interest. The devil’s in the details in their arms. Last year, eDressMe.com Shape Guide helps Similarly, a design-your-own eager to humanize her business, Ms. Endline decided to use hand had $2 million in revenues. It now clients identify styles dress option fizzled. “It’s too much lettering on her labels. She was so focused on making them attractive, employs six people in its office and that will flatter their work,” says Ms. Stoner. she didn’t notice they were too big for the tins, leaving her with 10,000 showroom in the garment district. body type.They can Furthermore, many customers labels that didn’t fit. Happily, her printer was able to trim them. key their measurements come to eDressMe.com to find an Then there was the order that arrived days late, on a meltingly hot HITS into Find My Size, a outfit for a special event, and they afternoon. No one was available to take delivery; a 1,000-pound order Extra doses of TLC proprietary program that don’t want to take any chances. was almost lost. Ms. Endline has learned to allow more shipping time. customers get as much personal tells them which dress service at eDressMe.com as they do size to order from a COMMENTS? [email protected]

Atlantic Bank... Your Business Advantage. Introducing ADVANTAGE BANKING from Atlantic Bank.

Now you can create a Business Advantage Relationship by linking your Business or Commercial Checking to a Business Money Market Account. The combined balances make it easier to avoid monthly fees, reward you with preferred rates on your Business Money Market Account, and provide a host of value-added services. • Avoid Checking Account Fees • No Application Fees • EARN Premium Money Market Rates • Financing Options • Cash Reserve for Business • Telephone Banking • Free Internet Banking • Plus, much more!

For additional information call: 1.800.535.2269 • www.abny.com

Equal Opportunity Lender

Your partner for success

Seventeen convenient locations • Brooklyn • Manhattan • Queens • Long Island • Westchester

February 12, 2007 | Crain’s New York Business | 25 REPORT SMALL BUSINESS NY Area’s Largest SBA-Guaranteed Loans Ranked by total amount in fiscal 2006

SBA’s share Borrower’s Third-party lender / Third-party lender’s Rank Borrower Total loan of loan business approval processor* share of loan

Candid Litho Printing Ltd. $11,557,000 $4,000,000 Printing and graphic arts GE Capital Small Business Finance Corp. $7,557,000 1 25-11 Hunters Point Ave., Long Island City, NY 11101 Empire State Certified Development Corp. Hampton Inn & Suites $6,430,000 $2,000,000 Hotel Community Bank of Sullivan County $4,430,000 2 1307 Ulster Ave., Kingston, NY 12401 Empire State Certified Development Corp. A&Z Pharmaceutical Inc. $6,073,500 $2,746,000 Pharmaceuticals and nutritional supplements Citibank $3,327,500 3 75 North Industry Court, Deer Park, NY 11729 Long Island Development Corp. Clarion $5,715,875 $2,000,000 Hotel Stearns Bank $3,715,875 4 138-05 Jamaica Ave., Jamaica, NY 11435 Empire State Certified Development Corp. B&R Machine and Tool Corp. $5,635,500 $2,548,000 Aircraft parts J.P.Morgan Chase $3,087,500 5 717-767 Main St., Westbury, NY 11590 Long Island Development Corp. McKeon Rolling Steel Door Co. $5,090,359 $2,302,000 Fire-door systems Bank of America $2,788,359 6 Vacant land in Brookhaven, NY 11719 Long Island Development Corp. North Shore Cardiopulmonary Associates $4,638,000 $1,500,000 Doctors’ office Bank of America $3,138,000 7 8 Greenfield Road, Syosset, NY 11791 Long Island Development Corp. Pedigree Ski Shop Inc. $4,403,500 $1,986,000 Sporting goods North Fork Bank $2,417,500 8 430 Bedford Road and 19 Cox Ave., Armonk, NY 10504 Empire State Certified Development Corp. City Scrap Metal Inc. $3,355,500 $1,500,000 Recycling Citibank $1,855,500 9 51-15 35th St., Long Island City, NY 11101 Long Island Development Corp. Inn at the Falls $3,296,473 $1,257,000 Bed-and-breakfast Citizens Bank $2,039,473 10 50 Red Oaks Mill Road, Poughkeepsie, NY 12601 Empire State Certified Development Corp. First Commemorative Mint Inc. $3,190,000 $1,440,000 Collectible coins and jewelry Banco Popular $1,750,000 11 101 Carolyn Blvd., Farmingdale, NY 11735 Empire State Certified Development Corp. Hilo-Yale Industrial Trucks Inc. $3,123,000 $1,413,000 Truck sales, rentals, parts and service GE Capital Small Business Finance Corp. $1,710,000 12 345 Oser Ave., Hauppauge, NY 11788 Long Island Development Corp. Fine Fare $3,098,000 $1,498,000 Supermarket Nara Bank $1,600,000 13 708 E. Tremont Ave., Bronx, NY 10457 Long Island Development Corp. Bay Ridge Urology Associates $3,008,000 $1,358,000 Doctors’ office North Fork Bank $1,650,000 14 7210-7212 13th Ave., Brooklyn, NY 11228 Empire State Certified Development Corp. Aladdin Packaging $2,918,500 $1,321,000 Plastic bags GE Capital Small Business Finance Corp. $1,597,500 15 40 Ranick Road, Hauppauge, NY 11788 Long Island Development Corp. The Castle Fun Center $2,871,000 $1,181,000 Amusement park KeyBank $1,690,000 16 109 and 115 Brookside Ave., Chester, NY 10918 Empire State Certified Development Corp. Network Adjusters Inc. $2,832,000 $1,282,000 Insurance claims adjusting TD Banknorth $1,550,000 17 850 Fulton St., Farmingdale, NY 11735 Long Island Development Corp. Furniture Design by Knossos Inc. $2,826,000 $1,276,000 Furniture and interior decorating GE Capital Small Business Finance Corp. $1,550,000 18 24-30 Brooklyn-Queens Expwy. West, Woodside, NY 11377 Empire State Certified Development Corp. Pro Tile Distributors Inc. $2,823,000 $1,273,000 Tile wholesaling M&T Bank Corp. $1,550,000 19 230 E. Seventh St., Mount Vernon, NY 10550 Empire State Certified Development Corp. Tate’s Wholesale $2,780,000 $1,255,000 Commercial bakery Sovereign Bank $1,525,000 20 62 Pine St., East Moriches, NY 11940 Empire State Certified Development Corp. Five Town Toyota $2,740,000 $1,240,000 Car dealership M&T Bank Corp. $1,500,000 21 696 Burnside Ave., Inwood, NY 11096 Long Island Development Corp. LJJ Inc. $2,735,000 $1,235,000 Women’s apparel New York Business Development Corp. $1,500,000 22 344 Maujer St., Brooklyn, NY 11206 Empire State Certified Development Corp. Middle Island Holding Corp. $2,735,000 $1,235,000 Construction North Fork Bank $1,500,000 23 Lot 4, Grucci Lane, Yaphank, NY 11980 Empire State Certified Development Corp. SD International Inc. $2,735,000 $1,235,000 Building products distributor Cathay Bank $1,500,000 24 540-544 Morgan Ave., Brooklyn, NY 11222 Empire State Certified Development Corp. Gregory Hardware & Lumber $2,672,000 $1,122,000 Hardware store Commerce Bank $1,550,000 25 251 East Shore Road, Great Neck, NY 11023 Long Island Development Corp. The U.S. Small Business Administration’s New York district includes New York City and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan, Ulster and Westchester counties. Rankings are for the fiscal year ended Sept. 30, 2006. In case of tied figures, companies are listed alphabetically under the same ranking number. The top 25 loans were approved under the 504 loan program, which provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as equipment, land and buildings. *The approval processor listed for each loan is the certified development corporation that handled the processing. Source: U.S. Small Business Administration

26 | Crain’s New York Business | February 12, 2007 In business, it’s better to receive.

Sprint Free Incoming Calls for small business $49.99/mo. Other monthly charges apply. See below.* with 300 outgoing minutes. Requires two-year subscriber agreement. The power to take every call and still save money. It’s just another way Sprint helps your small business cut costs and stay productive. And yet another reason why twice as many business customers choose Sprint over Cingular.

SCP-7000 by Sanyo® Buy one $29.99 get four FREE After $119.96 mail-in rebate. $149.95 at point of sale. Requires activation of new line of service and two-year agreement per phone.

>Text Messaging Capable > Rubberized Form Factor > Built-in Speakerphone

CALL 1-8SPRINT- B IZ CLICK sprint.com/business GO to the nearest Sprint or Nextel retailer

THE POWER TO GET MORE DONE. SWITCH TO SPRINT TODAY.

*Rates exclude taxes and Sprint fees (including USF charge of up to 2.41%, which varies quarterly, cost-recovery fees up to $1.55 per line and state/local fees that vary by area). Sprint fees are not taxes or government-required charges.

“Twice as many business customers” claim based on a survey of corporate-liable customers. Nationwide Sprint PCS Network reaches over 250 million people – coverage not available everywhere. See sprint.com/coverage for details. Not available in all markets or retail locations. Subject to credit approval. Phone Offer: Expires 3/31/07 or while supplies last. Up to $36 activation fee and $200 early termination fee apply. Must be same-model phone. Mail-in Rebate: Taxes excluded. Line must be active 30 consecutive days. Allow 8 to 12 weeks for rebate. Device model subject to availability. Free Incoming Plan: Offer ends 3/31/07. Free Incoming applies to calls received in the US. Overage ($0.45 per minute). Nights: 9pm–7am; weekends: Friday 9pm–Monday 7am. Partial minutes charged as full minutes. ©2007 Sprint Nextel. All rights reserved. Sprint, the “Going Forward” logo and other trademarks are trademarks of Sprint Nextel. ACCOUNTING/QUICKBOOKS COMPUTER CONSULTING PUBLIC & LEGAL NOTICES Certified QuickBooks POS Experts who understand your business and the importance of cor- rect process flows. 47 Years of combined Notice of Qualification of Highline Select, L.P. Notice of Formation of THE PUMP Notice of Formation of GFI Development experience in accounting, finance and various specialized Authority filed with NY Dept. of State on CATERING COMPANY LLC. Arts of Org Company, LLC. Arts. of Org. filed with Secy. businesses. Over 400 installations completed. 12/19/06. Office location: NY County. LP formed filed with Secy of State of NY (SSNY) on of State of NY (SSNY) on 12/28/06. Office www.QBTrainer.net in Delaware (DE) on 12/13/06. Secy. of State 09/14/04. Office Location: New York location: NY Co. SSNY designated as agent 212-767-1500 or 212-332-8162 designated as agent of LP upon whom process County. SSNY designated as agent of LLC of LLC upon whom process against it may be [email protected]. against it may be served. Secy. of State shall mail upon whom process against it may be served. SSNY shall mail process to: National process to the principal business address of served. SSNY shall mail process to: Registered Agents, Inc., 875 Ave of the BOOKKEEPING SERVICES the LP: One Rockefeller Plaza, 30th Fl., NY, NY William A. Scott, CPA, PC, 301 E. Hanover Americas, Ste 501, NY, NY 10001, also 10022, Attn: Howard Singer. DE address of LP: Avenue, Suite 4, Morristown, NJ 07960. registered agent. Purpose: any lawful activities. c/o Corporation Service Co., 2711 Centerville Rd., Purpose: To operate restaurant and Ste. 400, Wilmington, DE 19808. Name/address catering services. NOTICE OF FORMATION of ACQ Networks of genl. ptr. available from SSNY. Cert. of LP filed LLC. Arts. of Org. filed with Secy. of State of with DE Secy. of State, 401 Federal St., Ste. 4, NOTICE OF QUALIFICATION OF Creative NY (SSNY) on 10/02/06. Office location: NY Coming Up Dover, DE 19901. Purpose: any lawful activity. Commerce, LLC Authority filed with the Co. SSNY designated as agent of LLC upon Secretary of State of New York (SSNY) whom process against it may be served. on the Calendar Notice of Qualification of 399 Knollwood on 12/07/06. Office Location: New York SSNY shall mail process to: c/o Austin Vance, Lessee LLC. Authority filed with Secy. of County. LLC formed in Delaware on ACQ Networks LLC, 316 West 19th St. #2E, State of NY (SSNY) on 1/12/07. Office location: 11/29/05 SSNY has been designated as NY, NY, 10011. Purpose: any lawful activities. NY County. LLC formed in Delaware (DE) on BUSINESS SERVICES agent of LLC upon whom process against 1/10/07. SSNY designated as agent of LLC it may be served. Address to which SSNY February 19th Notice of Formation of Barbosa Enterprises upon whom process against it may be shall mail process against the LLC is C/O 9/11: We Will Never Forget LLC. Arts. of Org. filed with Sec. of State Real Estate served. SSNY shall mail process to: c/o the LLC: Corporation Service Co., 80 State INCLUDES: State Filing Fees, of NY (SSNY) on 9/26/06. Office Loc. in NY NEW YORK National Registered Agents, Inc., 875 Ave of Street, Albany, NY, 12207. Principal Business Company Seal & Book, Certificate of County. SSNY designated as agent of LLC CORPORATION Incorporation or Organization, Company the Americas, Ste 501, NY, NY 10001, also Address of LLC 33 W19th St., 4th floor, $ 95 Minutes, Corporate ByLaws, Stock/ upon whom process against it may be served. 16 4 registered agent. Address required to be N.Y., N.Y. 10011. Purpose of LLC: any COMPLETE Membership Certificate, Preliminary SSNY shall mail a copy of process to c/o CALL FOR FREE Name Search, Attorney’s Fee February 26th maintained in DE: 160 Greentree Dr., Ste 101, lawful activity. INFORMATION ® Michael Barbosa, 370 St. Nicholas Ave. PACKET www.amerilawyer .com Dover, DE 19904. Arts. of Org. filed with DE NEW YORK LLC (212) 962-1000 (516) 338-9100 Business of Law Secy. Of State, 401 Federal St., Ste 4., Dover, Suite 3C, New York, NY 10027. Purpose: 95 NEW YORK CITY LONG ISLAND Notice of Formation of Patria Pictures, LLC. Any Lawful Purpose. $234 Spiegel & Utrera, P.A., P.C. DE 19901 . Purpose: any lawful activities. COMPLETE 45 John St., Suite 711; NYC © L. Spiegel Arts. of Org. filed with NY Dept. of State on 12/4/06. Office location: NY County. Principal Notice of formation of limited partnership Notice of Formation of NJS 460 LLC. Arts. LEGAL SERVICES (L.P.) Name: Yorkshire Towers Company business address: 320 W. 17th St., #1RW, NY, NY 10011. Secy. of State designated as agent of Org. filed with NY Dept. of State on Successor II, L.P. Cert. of LP filed with SSNY 1/16/07. Office location: NY County. Secy. on 1-08-2007. Off. Loc: New York County. of LLC upon whom process against it may be JULES MARTIN HAAS, ESQ. served. Secy. of State shall mail process to: of State designated as agent of LLC upon SSNY designated as agent of the LP, upon whom process against it may be served. Providing Legal Services to Businesses and Individuals for Over 20 Years whom process against it may be served. Corporation Service Co., 80 State St., Albany, NY 12207. Purpose: any lawful activity. Secy. of State shall mail process to: c/o throughout the New York Metro Area. SSNY shall mail a copy of any process to: c/o Wharton Realty, 20 E. 46th St., Ste. 1200, Wills • Planning • Probate • Real Estate • Co-Ops • Condos • Leases Lynn Schneider, 60 East 42nd Street, NY, NY NY, NY 10017, principal business address Business Formation/ Transactions 10165. The name and address of each general Notice of Formation of 345 7th Avenue, of the LLC. Purpose: any lawful activity. 845 Third Avenue, Suite1400, New York, NY 10022 partner is available from SSNY. Term: until LLC. Arts. of Org. filed with Secy. of State Tel: (212) 355-2575 Fax: (212) 751-5911 E-mail: [email protected] 3-09-2032. Purpose: To manage, improve, of NY (SSNY) on 12/21/2006. Office lease and otherwise deal with the property location: New York County. SSNY designated Notice of Qualification of GS Special located at 305 East 86th Street, NY, NY. as agent of LLC upon whom process Opportunities 2006 Advisors, L.L.C. Authority REAL ESTATE INSURANCE against it may be served. SSNY shall mail filed with Secy. of State of N.Y. (SSNY) on Notice of formation of ISNYC Holdings, LLC. process to: The Company, c/o Vince Terranova, 1/4/07. Office location: NY County. LLC Art. Of Org. filed with Secy. Of State of NY Bernstein Real Estate, 855 Avenue of the formed in Delaware (DE) on 10/13/06. SSNY KINGSBROOK/ARONSON INSURANCE (SSNY) on 11/14/06. Office Location: New Americas, New York, NY 10001. Purpose: designated as agent of LLC upon whom York County. SSNY designated as agent of the any lawful activities. process against it may be served. SSNY shall The #1 Insurance Source For All Real Estate LLC upon whom process against it may be mail process to principal business location: served. SSNY shall mail a copy of any process Notice of Formation of 750 Argyle Street c/o Goldman Sachs Special Opportunities Best Programs & Lowest Premiums to: c/o Helmsley-Spear, Inc. 60 East 42nd St., LLC. Arts. of Org. filed with Secy. of State of Fund 2006, L.P., 32 Old Slip, NY, NY 10005. David J. Matalon • 212-513-1600 • 212-233-3950 (fax) Ste 5300, New York, NY 10165, Purpose: To NY (SSNY) on 10/19/2006. Office location: DE address of LLC: Corporation Service engage in any lawful act or activity. NY County. SSNY designated as agent of Company, 2711 Centerville Road, Ste. 400, [email protected] LLC upon whom process against it may be Wilmington, DE 19808. Cert. of Form. filed NOTICE OF FORMATION of Abacus Advisors, served. SSNY shall mail process to: the with DE Secy. of State, 401 Federal St., Ste. 4, LLC. Arts. of Org. filed with NY Secretary of LLC, 325 W. 11th St, NY, NY 10014. Dover, DE 19901. Purpose: any lawful activity. RELOCATION SERVICES State (SSNY) on 11/21/2006. Date of Purpose: any lawful activities. formation: 10/1/06. Office location: New York Notice of Qualification of Strategic Value Credit County. Principal bus. location: c/o Wendy Opportunities Fund, L.P. Authority filed with Touton, 575 Madison Avenue, Suite 1006, NY, Notice of Formation of 300 West 22 Realty LLC. Arts. of Org. filed with Secy. of State Secy. of State of N.Y. (SSNY) on 11/18/03. NY 10022. SSNY designated as agent of Office location: NY County. LP formed in LLC upon whom process against it may be of NY (SSNY) on 11/07/06. Office location: NY Co. SSNY designated as agent of LLC Delaware (DE) on 10/9/03. SSNY designated served. SSNY shall mail copy of process to as agent of LP upon whom process against it Wendy Ann Touton, 575 Madison Avenue, upon whom process against it may be served. SSNY shall mail process to: The LLC, 433 may be served. SSNY shall mail process to: Suite 1006, NY, NY 10022. Purpose: All The LP, 375 Park Avenue, 29th Fl., NY, NY lawful purposes. West 14th St., Ste 429 3R, NY, NY 10014. Purpose: any lawful activities. 10152. DE address of LP: 1209 Orange St., Wilmington, DE. Name/address of each genl. NOTICE OF QUALIFICATION OF Digital ptr. available from SSNY. Cert. of LP filed with Commerce Agency, LLC Authority filed with Notice of Formation of Craddock & Company DE Secy. of State, Townsend Bldg., Dover, DE the Secretary of State of New York (SSNY) LLC. Arts. of Org. filed with Secy. of State of 19901. Purpose: any lawful activity. on 12/07/06. Office Location: New York NY (SSNY) on 11/16/06. Office location: NY County. LLC formed in Delaware on Co. SSNY designated as agent of LLC upon 05/04/06 SSNY has been designated as whom process against it may be served. DUB SONATA MUSIC L.L.C. Articles of Org. agent of LLC upon whom process against SSNY shall mail process to: c/o Christopher filed NY Sec. of State (SSNY) 12/6/06. Office REAL ESTATE it may be served. Address to which SSNY Craddock, Manager, 235 East 40th St, Apt. 5J, in NY Co. SSNY desig. agent of LLC upon shall mail process against the LLC is C/O NY, NY 10016. Purpose: any lawful activities. whom process may be served. SSNY shall the LLC: Corporation Service Co., 80 State mail copy of process to 2621 Palisade Ave., OFFICE SPACE Street, Albany, NY, 12207. Principal Notice of Qualification of Gemini 449 West #3B, Riverdale, NY 10463, which is also the Business Address of LLC 33 W19th St., 36th Street 9, LLC. Authority filed with Secy. address of the registered agent, Christopher 4th floor, N.Y., N.Y. 10011. Purpose of LLC: of State of NY (SSNY) on 11/28/06. Office Markisz upon whom process against the LLC any lawful activity. location: NY County. LLC formed in Delaware may be made. Purpose: Any lawful purpose. Latest dissolve date: 12/31/2105. NOTICE OF FORMATION OF LIMITED (DE) on 11/17/06. SSNY designated as agent EXECUTIVE OFFICE SUITES of LLC upon whom process against it may LIABILITY COMPANY. NAME: MAN AND 516 E. 6TH STREET, LLC Articles of Org. WIFE LLC. Articles of Organization were filed be served. SSNY shall mail process to: c/o Corporation Service Company, 80 State St., filed NY Sec. of State (SSNY) 10/13/2006. 212.573.0909 with the Secretary of State of New York Office in New York Co. SSNY desig. agent (SSNY) on 10/17/06. Office location: New Albany, NY 12207-2543, also registered agent. Address required to be maintained in of LLC upon whom process may be served. York County. SSNY has been designated as SSNY shall mail copy of process to 270 FurnishedOfficesNYC.com agent of the LLC upon whom process DE: c/o Corporation Service Company, 2711 Centerville Rd, Ste 400, Wilmington, DE Lafayette Street, New York, N.Y. 10012. against it may be served. SSNY shall mail a Purpose: Any lawful purpose. OFFICE SPACE copy of process to the LLC, 24 Fifth Avenue, 19808. Arts. of Org. filed with DE Secy. Of Apartment 1115, New York, New York 10011. State, 401 Federal St., Ste 4., Dover, DE 19901. Advertise on Purpose: any lawful activities. MIDTOWN COMMERCIAL Purpose: For any lawful purpose. NOTICE OF FORMATION OF TORU LLC www.newyorkbusiness.com Art of org. filed with Sec. of State of NY REAL ESTATE Notice of Qualification of Dodona I, LLC. Notice of Qualification of Sempra Energy (SSNY) on 12/22/06. Office loc.: NY County. For All office & loft SPACES Authority filed with NY Dept. of State on Solutions, LLC. Authority filed with Secy. of SSNY designated as agent of LLC upon whom Call John Gallagher 500-50,000 SF 12/28/06. Office location: NY County. LLC State of NY (SSNY) on 1/02/07. Office process against it may be served. SSNY shall UNDER MARKET SUBLETS-NO FEE! formed in Delaware (DE) on 10/25/06. Secy. of location: NY County. LLC formed in California mail process to: 201 E. 79th St. 18-h, NY, NY Search our listings @ www.midcomre.com State designated as agent of LLC upon whom (CA) on 10/31/06. SSNY designated as agent 10021. Purpose: Any lawful activity. @ 212-210-0189 process against it may be served. Secy. of of LLC upon whom process against it may be Call Paul 212 947-5500 x 100 State shall mail process to: The LLC, 1370 served. SSNY shall mail process to: c/o Ave. of the Americas, 20th Fl., NY, NY 10019, National Registered Agents, Inc., 875 Ave of Notice of Formation of Cape Equities, LLC; Attn: Alan Brody. DE address of LLC: c/o the Americas, Ste 501, NY, NY 10001. Arts of Org., filed with NY Sec. of State Corporation Service Co., 2711 Centerville Rd., Address required to be maintained in CA: 101 (“SSNY”) 12/14/2006. Office in NY County; Ste. 400, Wilmington, DE 19808. Cert. of Ash St., San Diego, CA 92101. Arts. of Org. SSNY designated agent for service of process www.newyorkbusiness.com Form. filed with DE Secy. of State, 401 Federal filed with CA Secy. Of State, 1500 11th St., with copy mailed to c/o Cape Advisors, Inc., St., Dover, DE 19901. Purpose: any lawful 3rd Fl, Sacramento, CA 95814 . Purpose: 150 Lafayette Street, 9th Floor, New York, NY activity. any lawful activities. 10013, All lawful business purposes.

28 | Crain’s New York Business | February 12, 2007 THE WEEKS AHEAD

THIS WEEK’S EVENTS FEBRUARY 13 FEBRUARY 14 Penn Plaza, fifth floor. Fee: $50. [email protected]. FEBRUARY 13 Action International of New York City Yale Capital Inc. holds seminar on street- (914) 788-5482. FEBRUARY 15 New York Software Industry holds business coaching workshop. smart strategies for a competitive edge. FEBRUARY 15 New York Public Library’s Science, Association holds program on the 6:15 p.m. to 8:30 p.m., 989 Sixth Ave., 8:30 a.m. to 10:30 a.m., Enterprise MarCapital Inc. holds seminar on how Continued on Page 30 United States and Hong Kong. 6:00 fourth floor. Fee: $95 in advance, $195 Center, Fashion Institute of Technology’s to process and close commercial p.m. to 8:00 p.m., 55 Broad St., 10th at door. (646) 862-1710 or School of Continuing and Professional mortgages. 6:00 p.m. to 7:15 p.m., 370 floor. Fee: free for members, $20 [email protected]. Studies, West 27th Street and Seventh Lexington Ave., 12th floor. Fee: $15. TO LIST YOUR EVENT nonmembers in advance; $25 for all at FEBRUARY 14 Avenue, Building A, eighth-floor alcove. (212) 584-4811 or [email protected]. Crain’s lists meetings online and includes them in the door. (212) 475-4503 or Crain’s New York Business holds Free. (212) 681-9500 or FEBRUARY 15 print edition as space permits. NYC events with fees [email protected]. networking breakfast and program with [email protected]. Biba4Network and Daily Mastery hold under $300 are considered for the print publication. Amanda Burden, chair of the City FEBRUARY 14 workshop on networking with follow- Listings can be submitted only through the Crain’s More meetings online at Planning Commission. 8:00 a.m. to 9:30 Five O’Clock Club’s Executive Job ups and time management. 6:00 p.m. to Web site. Go to www.newyorkbusiness.com and www.newyorkbusiness.com a.m., Sheraton New York, 811 Seventh Search Group holds seminar on 8:30 p.m., MetLife, 260 Madison Ave., click on “Events.” Sponsors have a choice of sever- Click on “Events” Ave. Fee: $70. (212) 210-0739 or developing new momentum in your job 10th floor. Fee: $10 members, $30 al free or paid listing options. All business events www.newyorkbusiness.com. campaign. 6:30 p.m. to 8:30 p.m., 11 nonmembers. (917) 573-9808 or will be posted online within two business days.

PUBLIC & LEGAL NOTICES LUXURY PROPERTIES

Notice of Formation of CCD Modeling, LLC, Notice of Formation of Big Blocks Asset NOTICE OF FORMATION OF LIMITED SOUTHAMPTON Art. of Org. filed Sec'y of State (SSNY) Management, LLC, a domestic Limited LIABILITY COMPANY. NAME: CELEBRITY 10/31/06. Office location: NY County. SSNY Liability Company. Arts. of Org. filed with EVERYTHING,LLC. Articles of Organization designated as agent of LLC upon whom the SSNY on 10/11/06. Office location: New were filed with the Secretary of State of New process against it may be served. SSNY shall York County. SSNY has been designated as York (SSNY) on 01/04/07. Office location: mail copy of process to c/o Shukat Arrow agent upon whom process against the LLC New York County. SSNY has been designated Hafer Weber & Herbsman, LLP, Attn: Peter S. may be served. SSNY shall mail a copy of as agent of the LLC upon whom process Shukat, Esq., 111 West 57th St., Ste. 1120, process to: the LLC, 14 Wall St.,12th Floor, against it may be served. SSNY shall mail a NY, NY 10019. Purpose: any lawful activities. New York, NY 10005. Purpose: Any Lawful copy of process to the LLC, 208 East 51st Purpose. Latest date upon which LLC is to Street, Suite 255, New York, New York Notice of formation of Limited Liability dissolve: No Specific Date. 10022. Purpose: For any lawful purpose. Company (LLC) Name: TRINITY DIAMONDS, LLC. Articles of Organization filed with the NOTICE OF FORMATION OF THE FASHION Notice of Formation of 1405 FIFTH AVENUE Secretary of State of New York (SSNY) on EXCHANGE, LLC. ART. OF ORG. FILED APARTMENTS, LLC, a domestic Limited 10/10/06. NY Office location: New York WITH THE SEC. OF STATE OF NY (SSNY) Liability Company (LLC). Articles of County. SSNY has been designated as agent ON 11/02/06. OFFICE LOCATION: NEW Organization filed with Secretary of State on of the LLC upon whom process against it YORK COUNTY. SSNY DESIGNATED AS 12/18/06. NY Office location: KINGS County. may be served. The Post Office address to AGENT OF THE LLC UPON WHOM Secretary of State is designated as agent which the SSNY shall mail a copy of any PROCESS AGAINST IT MAY BE SERVED. upon whom process against the LLC may process against the LLC served upon SSNY SHALL MAIL COPY OF PROCESS TO: be served. Secretary of State shall mail a him/her is: C/O the LLC, 25 Tudor THE LLC, 1407 BROADWAY SUITE 1706, copy of any process against the LLC served City Place, Suite 812, New York, NY 10017. NY, NY 10018. PURPOSE: ANY LAWFUL upon him/her to: THE LLC, 91 CONKLIN Purpose of business of the LLC is any ACTIVITIES. AVE., BROOKLYN, NY 11236. Purpose: To lawful act or activity. engage in any lawful act or activity. Notice of Qualification of Tokum Partners, LP, PEARLMARK MEDIA LLC Articles of Org. App. for Auth. filed Sec'y of State (SSNY) Notice of Qualification of Barrington Land filed NY Sec. of State (SSNY) 12-13-05. 11/15/06. Office location: NY County. LP org. Services, LLC. Authority filed with Secy. of Office in New York Co. SSNY desig. agent of in DE 11/14/06 SSNY designated as agent of State of N.Y. (SSNY) on 1/9/07. Office location: LLC upon whom process may be served. SSNY LP upon whom process against it may be NY County. LLC formed in New Jersey (NJ) shall mail copy of process to 184 Lexington served. SSNY shall mail copy of process to on 1/3/07. SSNY designated as agent of Avenue, Suite 10C, New York, NY 10016. 900 Third Ave., Ste. 1102, NY, NY 10022, LLC upon whom process against it may be Purpose: Any lawful purpose. Attn: Lauren Chung. DE office addr.: CSC, served. SSNY shall mail process to: 276 2711 Centerville Rd., Wilmington, DE 19808. Fifth Avenue, 6th Fl., NY, NY 10001. DE Notice of Formation of MCCANN, GOODWIN Cert. of LP on file: SSDE, Townsend Bldg., address of LLC: c/o Alan Rosenbaum, 70 LLC. Arts. of Org. filed with Secy. of State Dover, DE 19901. Name/addr. of each gen. ptr. Grand Avenue, Ste. 101B, River Edge, NJ of N.Y. (SSNY) on 11/29/06. Office location: avail. at SSNY. Purpose: any lawful activities. 07661. Cert. of Form. filed with NJ Dept. of NY County. SSNY designated as agent of State, P.O. Box 308, Trenton, NJ 07625. LLC upon whom process against it may be Notice of Qualification of Fifth Associates, Purpose: any lawful activity. served. SSNY shall mail process to: The L.L.C. Authority filed with NY Dept. of State LLC, 630 Fifth Avenue, Ste. 1401, NY, NY on 1/5/07. Office location: NY County. LLC Notice of Qualification of Paige Opportunity 10111, Attn: Joseph H. McCann, III. formed in Delaware (DE) on 12/28/06. Secy. Partners, LP, App. for Auth. filed Sec'y of State Purpose: any lawful activity. of State designated as agent of LLC upon (SSNY) 10/23/06. Office location: NY County. whom process against it may be served. LP org. in DE 10/20/06. SSNY designated as Notice of application for license for on-premises Secy. of State shall mail process to: c/o agent of LP upon whom process against it may consumption of alcoholic beverages by: JOS Brian Kempner, Kushner Companies, 18 be served. SSNY shall mail copy of process to Concept, LLC, using the trade name of B. Café. Columbia Tpke., Florham Park, NJ 07932, 630 Third Ave., 6th Fl., NY, NY 10017, Attn: Notice is hereby given that a license, number principal business address of the LLC. DE Michele Paige. DE office addr.: CSC, 2711 1182271, for beer, liquor and wine has been Centerville Rd., Wilmington, DE 19808. Cert. of applied for by the above company to sell at retail address of LLC: c/o Corporation Service Co., in a restaurant under the Alcoholic Beverage 2711 Centerville Rd., Ste. 400, Wilmington, LP on file: SSDE, Townsend Bldg., Dover, DE Control Law at 240 East 75th Street, New York, DE 19808. Arts. of Org. filed with DE Secy. 19901. Name/addr. of each gen. ptr. avail. at New York 10021, in New York County, for of State, Federal & Loockerman St., Dover, SSNY. Purpose: any lawful activities. on-premises consumption. DE 19901. Purpose: any lawful activity. LEGAL NOTICE Notice of Qualification of PCV ST OWNER Notice of Qualification of 666 Fifth Associates LP, Authority filed with Secy. Of State of NY LLC. Authority filed with NY Dept. of State NOTICE OF SALE (SSNY) on 11/14/06. Office location: NY on 1/5/07. Office location: NY County. LLC SUPREME COURT: COUNTY OF BRONX - County. LP formed in Delaware (DE) on formed in Delaware (DE) on 12/26/06. Secy. AMERIQUEST MORTGAGE COMPANY, 11/13/06. SSNY designated as agent of LP of State designated as agent of LLC upon Plaintiff, AGAINST JENNIFER SIMPKINS, upon whom process against it may be whom process against it may be served. ET. AL., Defendant(s). Pursuant to a MIAMI BEACH/FLORIDA served. SSNY shall mail process to: c/o Secy. of State shall mail process to: c/o judgment of foreclosure and sale duly dated National Registered Agents, Inc., 875 Brian Kempner, Kushner Companies, 18 12/7/2006, I, the undersigned Referee will To place your classified Avenue of the Americas, Ste. 501, NY, NY Columbia Tpke., Florham Park, NJ 07932, sell at public auction at the Bronx County TRUMP OCEANFRONT CONDOS 10001, also registered agent. DE address of principal business address of the LLC. DE Courthouse, Room B-129, 851 Grand OWN YOUR LUXURY CONDO TODAY! LP: 160 Greentree Dr, Ste 101, Dover, DE address of LLC: c/o Corporation Service Co., Concourse, Bronx, New York, on 2/28/2007 ad call John Gallagher TRUMP GRANDE & TRUMP TOWERS 19904. Name/address of genl. ptr. available 2711 Centerville Rd., Ste. 400, Wilmington, at 2:00 PM, premises known as 3575 Buy directly from the Developer & Save $$ from SSNY. Cert. of LP filed with DE Secy. DE 19808. Arts. of Org. filed with DE Secy. Paulding Avenue, Bronx, NY 10467. All that Furnished Condo Hotel units from $325k of State, Federal & Duke of York Sts., of State, Federal & Loockerman St., Dover, certain plot piece or parcel of land, with the @ 212-210-0189 1-4 Bedrm Residential Condos from $875k Dover, DE 19901. Purpose: Real estate DE 19901. Purpose: any lawful activity. buildings and improvements thereon erected, Ask for details on our FLY-BUY Program leasing and development. situate, lying and being in the New York Call Exclusively Baronoff 305.213.3606 NOTICE OF FORMATION OF LIMITED City, Borough of Bronx, County of Bronx Notice of Formation of 240 West Broadway LIABILITY COMPANY. NAME: 698 TITAN and State of New York, Section, Block and LLC. Arts of Org filed with Secy of State of PROPERTIES LLC. Articles of Organization NY (SSNY) on 08/16/06. Office location: were filed with the Secretary of State of Lot:-4683-30. Approximate amount of New York County. SSNY designated as New York (SSNY) on 01/18/07. Office location: judgment $331,975.61 plus interest and agent of LLC, upon whom process against New York County. SSNY has been designated costs. Premises will be sold subject to it may be served. SSNY shall mail process as agent of the LLC upon whom process provisions of filed Judgment Index www.newyorkbusiness.com to: Peter Moore Associates, Attn: against it may be served. SSNY shall mail a #22082/04. Lorraine Corsa, Esq., Referee, Jonathan Morse, 515 Canal Street, New copy of process to the LLC, 626 Tenth Avenue, STEVEN J. BAUM, P.C., Attorney for Plaintiff York, NY 10013. Purpose: Real Suite 1A, New York, New York 10026. P.O. Box 1291, Buffalo, NY 14240-1291 Estate Investment. Purpose: For any lawful purpose. Dated: 1/23/2007

February 12, 2007 | Crain’s New York Business | 29 THE WEEKS AHEAD

WHY PAY N.Y.C. RENTS? Continued from Page 29 FEBRUARY 16 and managing your own retail Industry and Business Library holds New York City Business Solutions holds business. 9:30 a.m. to 12:30 p.m., up to 6 MONTHS FREE RENT workshop on structuring a business. 5:30 seminar for freelancers, the self- American Management Association, p.m. to 7:00 p.m., 188 Madison Ave., employed and sole proprietors on taxes 1601 Broadway, eighth floor. Fee: up to 20,000 SF room 018. Free. (212) 592-7000. and the IRS. 2:30 p.m. to 5:30 p.m., 110 $40. (212) 264-4507 or FEBRUARY 15 William St., fourth-floor conference [email protected]. Class A Full Service Building Hispanic Professionals Networking room. Free. (212) 618-8817 or FEBRUARY 20 Group holds breakfast workshop on [email protected]. Networking for Professionals holds Units from 2,000 to 20,000 SF building relationship skills. 9:00 a.m. to networking reception. 6:15 p.m. to 8:15 12:00 p.m., American National FEBRUARY 19-25 p.m., Morgans Bar, 237 Madison Ave. Armonk, New York Standards Institute, 25 W. 43rd St., FEBRUARY 20 Fee: $10 members and $15 nonmembers fourth floor. Fee: $45. (917) 860-5673 or Professional Women in Construction in advance; $20 for all at door, cash only. $23.00 PSF + Electric www.acteva.com/go/hpng. holds networking reception with (718) 625-1369 or FEBRUARY 16 construction chiefs. 5:30 p.m. to 8:00 [email protected]. All American Capital Commerce Bank and Manhattan p.m., Club 101, 101 Park Ave. Fee: $65 FEBRUARY 20 Chamber of Commerce hold seminar on members, $75 nonmembers. New York County Lawyers’ Association 914-253-8555 energizing a business. 8:30 a.m. to 10:00 (212) 486-7745 or [email protected]. holds networking reception. 6:30 p.m. to a.m., 2 Wall St. Free. (212) 473-7805 or FEBRUARY 20 8:00 p.m., Gstaad, 43 W. 26th St. Fee: [email protected]. Score NYC holds seminar on starting $5. (646) 375-2195. FEBRUARY 21 Magazine Publishers of America holds forum on online integrated sales. 8:30 a.m. to 10:30 a.m., 810 Seventh Ave., 24th floor. Fee: $125 members, $225 nonmembers. (212) 872-3733 or [email protected]. FEBRUARY 21 National Association of Women Business Owners holds networking reception and program with Cyndi Lee from OM Yoga. 5:30 p.m. to 8:00 p.m., Microsoft, 1290 Sixth Ave., Radio City Room. Fee: free for members, $30 nonmembers. (212) 252-1100. FEBRUARY 21 Lehman College’s Small Business Development Center holds workshop on starting and managing a small business. 10:30 a.m. to 1:30 p.m., 250 Bedford Park Blvd. West, Old Gym Building, room 108-B, Bronx. Free. (718) 960-8697 or [email protected]. —adrianne pasquarelli

EXPLORING CAREERS STUDENTS SEEK HOST BUSINESSES THE GREATER NEW YORK Councils Exploring program is seeking businesses to host educational sessions offering high school students the opportunity to explore various industries and make better decisions about possible career choices. The Exploring program puts together groups of 15 to 25 students interested in specific fields. The student groups meet at the host businesses after school for four or more A NEW YORK HOTEL. A NEW POINT OF VIEW. sessions, learning about career ladders, educational INTRODUCTORY RATE requirements, salaries and what $ * people in their selected fields 399 actually do. Businesses often arrange special projects for the students. Programs start throughout the year, and the timing is tailored to fit business schedules. Participating companies include B.R. Guest Restaurants, Bloomberg LP, Microsoft Corp., Newmark & Co. Real Estate Inc. and Crain’s New York Business. 866.664.9124 THELONDONNYC.COM/NYB WEST 54TH BETWEEN 6TH & 7TH For more information, please call Exploring director Bob Hayes

*Rate Valid through 3/31/07 for single/double occupancy and is subject to availability. Rates are per room, per night and are not combinable with other offers or at (212) 651-2808, or visit group rates. Taxes are additional. www.nyexploring.org.

30 | Crain’s New York Business | February 12, 2007 MARDI GRAS GALAS BUSINESS INSIDE Living Large Finding a bit of Chow down, camp in the city PAGE 34 chew the fat Table Talk Hawaiian or new yorkers who know what it means to Tropic Zone sizzles miss New Orleans F PAGE 35 during Mardi Gras, here’s a in midtown list of venues celebrating Fat Tuesday next week. Laissez les bon temps rouler!

ACME BAR & GRILL is making room for a Cajun washboard band, the Dirty Water Dogs, which will play from 7 p.m. to midnight. Rum drinks abound, including Hurricanes and fruity Bayou Breezes ($7 each). Bartenders will give out beads and T-shirts, too. 9 Great Jones St.; www.acmebarandgrill.com D.B.A. will offer patrons a down-home taste of New Orleans next Tuesday, with complimentary king cake and red beans and rice.The bar, which usually carries only gourmet beers in its New York and New Orleans locations, will stock New Orleans’ DIFFICULT CALL: Deciding favorite, Abita Amber, for when to let children start the occasion. Revelers who riding the subway on their want to join the second-line own is one of the more procession through the neigh- vexing dilemmas facing borhood should get there by parents in the city. 5:30 p.m. Costumes are encouraged. 41 First Ave.; www.drinkgoodstuff.com JACQUES-IMO’S CAFÉ is one of the most popular party spots on Fat Tuesday, and the res- taurant is already heavily booked.The party will in- clude performances by the SugarTone Brass Band, plenty Hitting the streets of Abita beer and the restau- rant’s famous alligator cheese- cake. 366 Columbus Ave.; No set rules for kids traveling alone; mistakes happen www.jacquesimosnyc.com MARA’S HOMEMADE throws a smaller bash than some of the other hot spots, but Mara gettyimages Levi goes all-out to make sure SAFER CITY the party feels authentic. She BY MATTHEW FLAMM Decline in robberies. offers a Mardi Gras package for $40 that includes 3 pounds ew yorkers may pride themselves on how savvy and street-smart of spicy boiled crawfish and they are in the worlds of business and commerce. But when it comes to two Abita beers. Order 24 letting their children walk out the door unsupervised, they can be among 100,280 hours in advance to purchase 1990 a homemade king cake for the the most nervous people on earth. table. 342 E. Sixth St.; Just ask a kid what it’s like to try to win freedom to roam. www.marashomemade.com “It’s probably reasonable for parents to worry,” says Tim Rossi, 14,a —elisabeth butler downtown native who has spent the last two years extending the 23,536 boundaries of where he can go by himself. “But there has to be some sort 2006 of compromise.” Deciding when to allow children to start walking to school or riding the subway—or staying out until midnight—on their own is among the more vexing everyday dilemmas facing parents in the -76.5% Ncity.Terrorist threats and news reports of child abductions ratchet up the anxiety even further, TOTAL DECLINE despite New York’s continuing record as a safe city. Source: NYC Police Department Parents are keenly aware that no city will ever be completely safe. And See NO SET RULES on Page 32 istockphoto

February 12, 2007 | Crain’s New York Business | 31 BUSINESS LIVES

self, the 12-year-old forgot to bring just to smell her,”says Janet Markoff, the money they’d left him. “One a managing director at search firm No set rules for traveling alone thing we’re trying to pound into his Major Lindsey & Africa, and moth- head is that when you’re out in the er of 17-year-old Lily. “She knows Continued from Page 31 world, there are keys, money and what that’s about, but I still do it.” no matter how much advice they phones,” says Mr. Dobens, a vice New York parents do sleep easi- get, they have to feel their way GIVING UP CONTROL president at real estate firm Pruden- er on one count: Their teenagers, through a parenting thicket where tial Douglas Elliman. “But he’s not unlike their suburban counterparts, there are no fixed signposts. GET READY. “Fourth grade is when kids start pushing to do going to do everything perfectly.” aren’t old enough to drive home “It’s been very gradual,” says things on their own,” says Lisa Spiegel, director of Soho Parenting. “Let them from parties at night. Tim’s mother, Anne Rossi, who take independent steps, like going into a store when you’re nearby.” Real troubles begin But there are hazards to city liv- works at a photography agency, GET SET. With middle school, children start traveling to school on what’s more, letting children go ing, and curfews, keeping in touch about expanding her son’s roaming their own, and ranging farther around the city. “Teach them how to read a free is just the beginning.As soon as and traveling with friends can only rights. Currently, Tim is limited to they’re traveling by themselves, the offer so much protection. Recently, subway map and about safety,” Ms. Spiegel says. Cell phones come in the lower half of Manhattan. For real teenage troubles begin. Tim Rossi was standing with a friend handy now. trips uptown and to other boroughs, After-school curfews need to be in broad daylight, waiting to meet a he has to travel with friends. “It’s GO. When high school starts, curfews need to be set, both for after- set, and children should be in regu- group for a community service proj- been about finding his comfort lev- school and for evenings out with friends. lar touch by cell phone, parenting ect, when two boys came by,claimed el and my comfort level,” she adds. experts say. At the same time, when they had a gun, and robbed them. RELAX. By senior year, they’re on their own. “The amount of control nighttime visits are involved, cell It was a frightening experience, Sixth grade a turning point you’re going to have is limited,” says Lawrence Balter, a psychology professor phones aren’t enough. but also an educational one. “Now I parenting experts emphasize that at New York University. “They need to call you from a land know it can happen to me,”Tim says. no two children are alike, though line,” insists Lisa Spiegel, director of “In the future, I’d wait in a store.” sixth grade tends to be the year most GOOD LUCK! Soho Parenting, a family counseling In some ways, muggings seem an families feel comfortable letting service in Manhattan.“Most kids are old-fashioned kind of danger.These their children travel alone to school. going to try to get away with stuff, days, worries about a child’s inde- Parents also have to realize that unlike their suburban counterparts, Crime, she adds, is not her main and you need to show them you’ve pendence go well beyond what can their children are often more capa- have a wealth of opportunities to worry.Her nightmares are about cars. been there, done that.” happen on a New York City street. ble of doing things on their own choose from when it comes to trav- Other parents echo that con- Parents say it’s also a good idea to “With the Internet, it’s difficult than they appear. eling on their own. So she’s letting cern, especially since tweens and talk to other families about curfews, to know everybody your kid’s talk- Laura Dupouy, an interior de- Quentin go to the nearby deli by teenagers tend to be lost in their especially if a sleepover is involved, ing to,” says Loretta Lurie, whose signer on the Upper West Side, has himself and walk their dog in the own worlds anyway, or can be easily so there’s agreement about how late 12-year-old daughter,Sydney,takes been negotiating these issues with neighborhood after school. distracted by their cell phones or everyone is allowed out. And while the city bus to school in Park Slope her 10-year-old son, Quentin, who “One of the good things about MP3 players. not all parents insist their child call on her own.“In some ways,the Web wants to walk the 10 blocks to giving kids independence is that Parents also learn that their chil- them on a land line,many agree that is much scarier than letting them go school by himself. they’re usually much more careful dren will make mistakes. The first it doesn’t hurt to be suspicious. to school and back.” Ms. Dupouy isn’t quite ready for when they’re on their own,” Ms. time Max Dobens and his wife let “When my daughter kisses me that step. But New York children, Dupouy says. their son Aiden take a cab by him- goodnight at 1 a.m., I inhale deeply COMMENTS? [email protected]

32 | Crain’s New York Business | February 12, 2007 BUSINESS LIVES CORPORATE LADDER George Gresham A card-carrying leader 1199 SEIU vet brings sands of health care workers’ jobs could be at risk. In his own low-key PERSONNEL FILE quiet strength to health way, he’s ready to fight for his con- stituents. “I would love to be able to COMPANY 1199 SEIU care union’s top job; sit down and talk things out,”he says. TITLE Secretary-treasurer; ready to fight Spitzer “But I am prepared to do whatever is incoming president, pending June necessary to protect our members.” election He’s starting by hiring 200 people BY SAMANTHA MARSHALL to build public resistance to the fund- AGE 51 ing cuts through community out- RÉSUMÉ 1199 vice president, or a union boss,George reach. In addition, the union, along 1199 administrative organizer; Gresham isn’t exactly with the Greater New York Hospi- MRI technologist at Columbia- your typical firebrand.If tal Association, will spend $15 mil- Presbyterian Hospital anything, the anointed lion on an ad campaign to counter successor to political the governor’s aggressive stance. INDISPENSIBLE GADGET Flightning rod Dennis Rivera is BlackBerry downright bashful. Dyed-in-the-wool union man BIRTHPLACE Richmond, Va. “I am a very shy person,”says Mr. mr. gresham, who has been with Gresham,whose soft voice belies his 1199 for 32 years and has served as bearlike physique. “I keep asking secretary-treasurer since 2000, is a Douglass, Nelson Mandela, Martin

myself how I’m going to step into union man to his core. Luther King Jr. and Malcolm X. buck ennis the spotlight.” The grandson of a Virginia share- Under the photo of the latter slain That’s exactly what Mr.Gresham cropper,he spent his early childhood civil rights leader is a quote—taken president of the union until June. sees $8 billion in pension fund assets. must do as he takes over 300,000- in a segregated school system. His from his speech after a successful Insiders don’t expect a challenge The new boss doesn’t plan big member 1199 SEIU, just as the parents moved north to take jobs as strike by 1199 workers in 1962— to Mr.Gresham,whose track record changes in priorities when he takes health care union—one of the most domestic workers for a Long Island that sums up Mr. Gresham’s creed, on behalf of union workers includes over, although he’ll concentrate on powerful in the country—is coming family. When his father eventually suggesting that Mr. Spitzer faces a many successful contract negotia- grooming a younger and more di- under attack.In a speech last month, became a trucker and an activist formidable opponent: “You don’t tions. His January deal with the verse generation of leaders.Union al- Gov. Eliot Spitzer said he’d seek member of the Teamsters, young get a job done unless you show the League of Voluntary Hospitals and lies who know Mr.Gresham says he’s $1.2 billion in cuts to Medicaid and Mr. Gresham realized the impact of Man you’re not afraid.” Homes helped give about 125,000 the right person to carry the torch. other health care funding,and he re- union membership on his family’s workers annual 3% raises, although “His disposition is easy,but he’s will- ferred to the union as an entrenched standard of living. He proudly dis- Shoulder to shoulder a part was delayed to bail out the ing to make tough decisions and back interest group that is partly respon- plays his late father’s Teamster cap mr.gresham will have some help in union’s health care fund. As secre- them with the full force of 1199,”says sible for rising health care costs. on a bookshelf in his office. fighting “the man.”Union members tary-treasurer, Mr. Gresham, who GNYHA President Kenneth Raske. Mr. Gresham warns that if the Also on exhibit are pictures of will vote for their next leader in has been quietly running day-to-day budget reductions go through,thou- Mr. Gresham’s heroes: Frederick April, but Mr. Rivera will remain operations for a few years now,over- COMMENTS? [email protected]

RSM McGladrey is the official accounting, tax and business consulting firm of the PGA. ANOTHER BREAKTHROUGH HELPING YOU DRIVE RESULTS Success in business and in golf requires many of the same attributes – a drive to achieve, power, accuracy, endurance, focus and much more. PGA Tour player Zach Johnson, a member of Team RSM McGladrey, exemplifies these qualities. Team RSM McGladrey golfers are moving up the ranks – much like our clients in New York and throughout the country. Our clients rely on us for the accounting, tax and business consulting services that help them avoid the traps and make the green. RSM McGladrey is one of the fastest- growing professional service firms in the New York region. For more information about RSM McGladrey (and the audit firms with which it has a professional services relationship*), contact

Don Lipari Steven Mayer Managing Director Managing Director 750 Third Avenue 1185 Ave. of the Americas New York, NY 10017 New York, NY 10036 Tel 212.297.4817 Tel 212.372.1261 don.lipari rsmi.com steven.mayer rsmi.com We’re building a bigger nest. @ @ Ropes & Gray LLP Look for Ropes & Gray at our new location in New 1211 Avenue of the Americas York in early 2007. It’s where we’re ideally positioned New York, NY 10036-8704 to serve a growing clientele. It’s where we’ll continue T 212.596.9000 • F 212.596.9090 ropesgray.com *In New York, RSM McGladrey maintains a professional services providing world-class legal service, solutions and relationship with Goldstein Golub Kessler LLP and McGladrey & Pullen LLP. Though separate legal entities, they can work success for our clients. together to serve clients’ needs. RSM McGladrey Inc. and McGladrey & Pullen LLP are member firms of RSM International, an affiliation of independent accounting and consulting firms.

February 12, 2007 | Crain’s New York Business | 33 BUSINESS LIVES LIVING LARGE Have roof deck, throw parties for the A-list

Web millionaire creates his version VITAL STATS PROPERTY Three-bedroom, of country life in fab 2.5-bath condo downtown penthouse ADDRESS 65 W. 13th St. ASKING PRICE $2.8 million L-SHAPED DECK: “I love it out here,” BY MARGARET JAWORSKI PURCHASE PRICE says Ari Ackerman, $2.7 million who searched for a year for outdoor n one of the coldest MONTHLY MAINTENANCE space. days of the year, Ari $1,690 Ackerman can’t resist strolling onto his CLOSING DATE April 28, 2003 buck ennis 1,400-square-foot L- Oshaped deck. The weather is year on the lookout for a pad with a and kids. Currently, 2,000 partici- small guest bedroom with a free- brighter,” he says. gloomy, but the homeowner beams. generous terrace before Lady pating camps pay to use standing sauna. He replaced the The condo board kept tabs on “I love it out here,” Mr. Acker- Luck—well, his broker—led him to Bunk1.com’s services, which in- south- and west-facing walls with the new homeowner throughout man says. the 1,600-square-foot penthouse clude giving parents access to camp floor-to-ceiling windows that look the reconstruction and renovation. So do his friends and acquaintanc- with roof deck on West 13th Street. newsletters, activities and photo out onto the deck and down Sixth They approved most of his requests, es. “The question I get asked most The three-bedroom, two-and-a- galleries, as well as a way to e-mail Avenue. but nixed the one for a hot tub out- is,‘When’s the next party?’” he says. half-bath condo needed work, but their kids. Of course, the recessed lighting, side the master bedroom. Mr. Ackerman inherited the Mr. Ackerman saw his future in the Mr. Ackerman was the first per- speaker system and high-definition “There was concern about noise knack for throwing fabulous parties floor plan. son to see the penthouse after it flat-panel screens work off one re- and water leakage to the apartment from his mother,Mona,a renowned came on the market with renovated mote-control system. below,” says Mr. Ackerman, who is New York hostess whose soirées at- Outdoor space required kitchen and bathrooms. His $2.7 “All I have to do is push a button instead grappling with a leak involv- tract A-listers like New York Times the city boy, who grew up on East million bid was $100,000 under the and the shades go up and down,” ing one of the windows. “It’s a hor- columnist Maureen Dowd and real 79th Street, attributes his passion asking price, but it was enough to Mr. Ackerman says. ror story,” he says. “The engineers estate mogul Mort Zuckerman. for the urban outdoors to his love af- seal the deal. can’t find the source.” Her 35-year-old son, whose In- fair with sleepaway camp, where he An extreme makeover came Million-dollar outlay The setback hasn’t soured his ap- ternet startup has made him a mil- spent years as a camper and coun- next. Mr. Ackerman hired an archi- the structural renovations cost preciation for his luxurious abode. lionaire in his own right, now hosts selor,and through which he eventu- tect to redesign the interior. He $700,000; another $100,000 went “This is a great way to live in New political events featuring such elite ally made his fortune. opened up the living room-dining toward furniture and electronics. York,” he says. “It’s a like having a guests as Sen. John McCain and His eight-year-old company, room area, and reconfigured the Mr. Ackerman has also set aside piece of summer camp.” Mayor Michael Bloomberg. Bunk1.com, provides an array of bedrooms, creating a master bed- $200,000 for interior design.“I want Mr. Ackerman spent close to a services to connect camps, parents room with an adjacent office and a the apartment to feel cozier and COMMENTS? [email protected]

EXECUTIVE MOVES

ACCOUNTING & CONSULTING exchange, Americas. He had been a Health magazine: Ellen Kunes, 48, was Lazar Levine & Felix: John K. Concannon, managing director at Fimat USA. named editor in chief for the Southern 47, joined as partner. He had been a TRG: Timothy Lewis, 40, was promoted Progress Corp. title. She had been a HOT JOBS senior manager at Rothstein Kass. to principal from managing director. magazine launch consultant. Schonbraun McCann Group: Joseph V.Fa- MSG Media: Scott Richman, 40, joined as langa, 55, joined as partner. He had been LAW senior vice president and general WANTED: CHIEF FINANCIAL OFFICER a partner at Goldstein Golub Kessler. Bracewell & Giuliani: Jonathan Halpern, manager, MSG Interactive. He had been Weiser: Ronald Lagnado, 41, was pro- 48, joined as partner. He had been a vice president and general manager at COMPANY Citigroup Inc. moted to partner from senior manager. partner at Winston & Strawn. America Online. Stuart A. Nussbaum, 37, was promoted to Edwards Angell Palmer & Dodge: Peter C. Rodale Inc.: Douglas Toews, 49, was JOB DESCRIPTION Overseeing reporting, treasury and tax activities, partner from senior manager. Schechter, 48, joined as partner. He had named senior vice president, marketing investor relations, and mergers and acquisitions been a partner at Darby & Darby. communications and branding. He had ADVERTISING & Fross Zelnick Lehrman & Zissu: David A. been chief image officer of the Image MOST IMPORTANT TASK Aligning strategies with predicted needs COMMUNICATIONS Donahue, 34, was promoted to partner Lab at L’Oréal Paris. CREDENTIALS NEEDED Proven leadership experience Fly Communications: Ben Cruz,40, from associate. joined as chief creative officer. He had James D. Weinberger, 32, was promoted REAL ESTATE SALARY Current CFO’s salary and bonus was $5.8 million in 2005 been a freelancer. to partner from associate. Brack Capital Real Estate USA: Jeffrey MediaWhiz Holdings: Thomas Lanzetta, 38, Hodgson Russ: Pierre Cournot, 54, joined Stern, 44, joined as senior vice president. RECRUITER Internal joined as chief financial officer. He had as partner. He had been a partner at He had been vice president at Skanska been Agency.com’s chief operating officer. Robinson & Cournot. USA Building. DOWNSIDE Dealing with the much-criticized management style of Tarter Krinsky & Drogin: Edward Farrell, 43, Brown Harris Stevens: Burt F.Savitsky, Chief Executive Charles Prince ARCHITECTURE & DESIGN was promoted to partner from counsel. 54, was promoted to senior vice Swanke Hayden Connell Architects: president from director. UPSIDE Having the potential to succeed Mr. Prince as CEO Robert Klein, 57, joined as principal. He MEDIA & ENTERTAINMENT had been a principal at Horizon. Genre magazine: William Kapfer, 40, was SERVICES CFO Sallie Krawcheck has been named chairman and CEO of global promoted to publisher; he remains vice Howard-Sloan Legal Search: Matthew J. wealth management, replacing Todd Thomson, who recently left the FINANCE & INSURANCE president for the Window Media title. Glubiak, 39, joined as managing director. firm. Though Citi is looking both inside and outside the company for First Capital: Thomas W. Strachan, 63, He had been director of customer Ms. Krawcheck’s successor, there’s speculation that Manuel Medina- joined as chief credit officer. He had development at On Assignment Inc. Mora, head of its Latin American business, is the strongest candidate. been managing director at T&B EXECUTIVE PROMOTIONS Insite Security Inc.: Richard A. Chapman, —KIRA BINDRIM Connections, which he co-founded. The fastest way to get an announcement into 40, joined as managing director. He had Société Générale Corporate & Investment Crain’s is to submit details online. Fill out the form been lieutenant commander detective for Banking: Vincent Bonamy, 37, was named at www.NewYorkBusiness.com/submit. The the NYPD’s intelligence division. managing director and head of foreign Executive Moves column is also available online. —adrianne pasquarelli

34 | Crain’s New York Business | February 12, 2007 BUSINESS LIVES TABLE TALK by Bob Lape nature blend of whimsy, zesty fla- split is topped with peanut brittle, vors and visual appeal. It is executed marshmallow, chocolate meringue, RUBBISH here by chef de cuisine Joel Reiss. strawberries and hot fudge sauce. There’s a lot to like. Appetizers Mr. Burke’s cheesecake lollipops are REMOVAL ($9 to $18) range from a themed pu served with bubble gum whipped pu platter for the table that includes cream and fresh raspberries, a con- assorted items for grilling on a hi- coction that also accents the vanilla- bachi to barbequed chicken spring passion fruit crème brûlée. Pineap- rolls and Perona Farms pastrami ple tarte tatin and coconut-crusted salmon. Spicy Asian tuna tartare, Key lime pie “martini” are worthy of Free Estimates pepper-seared beef carpaccio on Hi- the extra calories, too. 24 HourService malayan rock salt with parmesan and Cocktails are well-made and Basements - Attics - Yards - Demolition truffle oil and a quintet of sprightly generously sized. Only seven of the Residential Contractors Commercial Accounts Welcome salads hit their marks. Caesar salad 50 wines available are under $50, www.gregsexpress.com comes with exceptional crisp,tempu- however, and the markup is truly ra-coated calamari dotted with pep- extraordinary on some. Dom Greg’s express padew. Pérignon, for example, retails for Mr. Burke’s renowned crackling $125 but is priced here at $400. Save the Planet. Recycle. Asian-spiced pork shank is done to The concierges are congenial if 1-866-MR-RUBBISH perfection, accompanied this time not always completely on top of the by Chinese sausage and shrimp fried service game. But, my, do they ever rice. Mustard-crusted tuna “Poke- try hard. style”involves a riot of tropical fruits and macadamia nuts. COMMENTS? [email protected] Swordfish Benedict is presented on a potato pancake, layered with chorizo and quail eggs, and slathered with béarnaise. Steaks, chops and fish are also available simply grilled, and sharing is encouraged—at no extra charge. Lunch fare includes a six-inch- high chicken BLT, with the added Office & Retail freight of cheese, onion and olives. Availabilities: Also on the midday menu are bur- gers with perfect fries, barbecued 212.594.2700 pulled pork sandwiches, and a big slab of meat loaf with cheese- slgreen.com infused mashed potatoes. buck ennis Pastry chef Stuart Marx pro- Reaching New Heights. SUNSCREEN OPTIONAL: Chef David Burke—standing with waitress Melida Salcedo—and duces a lineup of first-rate desserts partners Dennis Riese (left) and Adam Hock are building a Hawaiian Tropic Zone in Las Vegas. ($8 to $16). A caramelized-banana

M&K BUSINESS HEROES NYC’s tropical KNOWLEDGE | INTEGRITY | RESPONSIVENESS ONCE AGAIN, OUR M&K HERO WENT zone sizzles ABOVE AND BEYOND TO HELP A CLIENT ACHIEVE A HIGHER A “boardwalk” parade featuring LEVEL OF SUCCESS. Skimpily clad staff the staff in small bathing suits is staged several times a night. Diners and good food make select the winner, who takes home a for entertaining lunch cash prize.After the event,everyone puts her skirt back on and returns to HAWAIIAN or dinner; costly wines waiting tables. TROPIC ZONE Some of the young ladies are 729 Seventh Ave. ith only a four- winners of regional contests spon- (at West 49th Street) month track sored by the namesake tanning lo- (212) 626-7312 record at Times tion; others are New Yorkers.All are ★★ Square, Hawai- in it for the, ahem, exposure. Sever- ian Tropic Zone al report landing modeling gigs as a CUISINE Contemporary isW being cloned. A groundbreaking direct result of the visibility. They American for the second spot is scheduled in project the wholesomeness of the Las Vegas this month. girl next door—to a hotel in Oahu. WINES 50 choices, 17 by the It didn’t take long for the heady The 300 patrons are seated amid glass combination of pulchritude on pa- palm trees. A water wall is on one DRESS No code In the real world, we’re CPAs. rade and David Burke’s food to side of the room;a TV screen,half of NOISE LEVEL Loud To our clients, we’re Superheroes. demonstrate that HTZ has a sunny it devoted to a video of pretty peo- future. Real estate mogul Dennis ple in swim attire and half of it PRICE RANGE $24-$43 Riese and partner Adam Hock as- showing CNBC business news, is WINE MARKUP 100%-400% pire to open more. on the other. The 16,000-square-foot, $11 Oddly, women make up an es- CREDIT CARDS All major MARCUM & KLIEGMAN LLP million duplex has been hot from sential part of the clientele. When RESERVATIONS Recommended Certified Public Accountants & Consultants its jam-packed opening. Enter- five women were asked why they HOURS Seven days, noon-1 a.m. tainingly designed by Jeffrey Beers, met here for lunch, the reply was: 800.921.0777 | www.mkllp.com the restaurant employs 100 “table “The food’s good. And there are so ★★★★= Outstanding ★★★ NEW YORK concierges”—HTZ-speak for wait- many single guys at the bar, it’s like = Excellent MELVILLE STAY TUNED FOR resses—clad in Nicole Miller hal- shooting fish in a barrel.” ★★= Very good GREENWICH THE NEXT INSTALLMENT OF ★ GRAND CAYMAN M&K BUSINESS HEROES ters, abbreviated skirts and, at least They’re certainly right about the = Good briefly, bikinis. food,which reflects Mr.Burke’s sig-

February 12, 2007 | Crain’s New York Business | 35 © 2007 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved. Avery, Marks-A-Lot, the Crown Cap Design, and all other Avery brands are trademarks of, and used here under license from, Avery Dennison Corporation.