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0 71486 01068 5 05 VOL. XXXI,NO.5

NEWSPAPER nonprofits care health Largest THE LIST NYers healthy play newroleingetting Community groupsto HEALTH CARE REPORT n om,tresimn ol,a three swimmingpools, ing rooms, three din- 39bathrooms, bedrooms, 29 issaidtosport Faircalled Field, ¶Hisestate, a leagueofitsown. Ira isin Rennert’s in theHamptons. ofbillionaires own hugehouses Lots ELSTEIN BY AARON CRAIN’S WWW.CRAINSNEWYORK.COM P. 13 Trial begins for mining maven Ira Rennert, accusedoflooting Trial beginsforminingmavenIraRennert, E OKBUSINESS YORK NEW P. 11 P. his companytobuildthenation’s privatemansion largest The housethatIrabuilt esdvlei 284720 andits sessed valueis$248,477,200, town records show theabode’s as- Southampton dence inthecountry. resi-be thelargestinhabitedprivate to thecolossusisbelieved square feet, Estimatedtocover 62,000 alley. andatwo-lanebowling gymnasium a court, abasketball 164-seat theater, tax breakbeforelawexpires tax racetosecure Developers even moreunclear key subsidy’s future With Silvergone, of dollars in so-called 421aabate- of dollarsinso-called out. beforeacross time runs thecity break ground onresidential projects to fierce amongdevelopers race break onJune15hastouchedoffa real ofakey The expiration estatetax BY DANIEL GEIGER At stakeare hundreds ofmillions court in Manhattan. The case pits Thecase inManhattan. court 2infederal beginningFeb. a trial of allegation standsasthecenterpiece ¶ That potent pany tohelppayforit. isaccusedoflootingacom- Rennert Mr. esting thingabouttheplace: ¶Here’s anotherinter- $756,026.42. lastyearwas bill property-tax ® year ended in June 2014,will likely be likely year endedinJune2014,will in forgonetaxrevenuethe fiscal $1.1billion costthecity gram,which break’s future. over thetax uncertainty developers’ has exacerbated city’s real estateindustry, ofthe long seenasafriend aman Silver, man Sheldon speakership ofAssembly- years. projects forupto25 taxes onnew toreduce theirrealapartments estate ofrentalments thatallow developers The 40-year-oldtax-break pro- The removal from the from theailingcompanyandusing $120millionfunneled having nearly by intobankruptcy drove MagCorp Rennert contendsthatMr. trustee The outfit known as MagCorp. senting creditors inafailedmining repre- againstatrustee Rennert Mr. year-old program 2014 from40- year endedJune fiscal city inthe byforgone the TAX REVENUE $1.1B less generous tobuilders. withchangesmakingit renewed,but purchased last year in Long Island purchased lastyearinLong ings thatshehopestoerect onsites build- work apartment ontwo start Now aren’t developers waitingfor See HOUSEonPage19 for instance, is rushing to isrushing for instance, builder,Brooklyn-based its current form. receiving theabatementin already71,950 properties adding theirprojects to the Insteadtheyare er vacuum. tofill itspow-the Assembly e EEOESonPage19 See DEVELOPERS FEBRUARY 2-8,2015 PRICE:$3.00 SWITCHERS oyMsois a Toby Moskovits, CODE BREAK THE CAREER MIDLIFE P. 21 P.

newscom 20150202-NEWS--0002-NAT-CCI-CN_-- 1/30/2015 6:46 PM Page 1

ASSISTANT M.E.’S NOTE

Spin city FYICRAINSNEWYORK.COM

I took part in a panel discussion recently on discerning spin from truth when politicians speak. I It’s Brooklyn or bust estimated that 90% of what they for de Blasio DNC bid say is spin. But it’s not just elected officials. Everybody spins. Interest ew York City wants to host the groups, flacks, even holier-than- 2016 Democratic National thou good-government groups Convention, and it’s up Erik Engquist N assail me daily with hundreds of against Philadelphia and Columbus, messages spinning ostensibly true Ohio.The national party committee is information to suit their purposes. I don’t resent the expected to decide the winner this Debbie Wasserman spin; these people are advancing their causes. But it’s week. DNC boss Schultz nycmayorsoffice enough to make my head, well, you know. Last week, was in town on Friday to hear Bill de Blasio the day after the mini-blizzard, I got an email from New York’s closing arguments. She huddled with Mayor and his top aides, and the Committee for Taxi Safety calling Uber’s surge toured the Barclays Center. ¶ Last Thursday, the mayor unveiled a 119-member host committee Kenneth Chenault pricing “a safety concern.” Wait, what? Usually I pick overflowing with boldfaced names, from American Express Chief Executive to Anna Wintour up the spin right away, the way a batter recognizes a Vogue editor .The message? New York has the star power—and wealth—to afford a curveball out of a pitcher’s hand. But this was a blur. good show for the Democrats.The city has already raised $6.5 million, and has commitments for Surge pricing makes Uber rides more expensive another $13.5 million.The 2004 Republican convention generated about $250 million in when demand is high, such as during bad weather, economic activity. ¶ The city’s argument can be reduced to two planks: It has enough money to Hillary Clinton and basic economics says higher prices reduce give the presidential nominee (most likely ) peace of mind and a mayor who will demand. If Uber offered $5 rides during storms, lots still be in office when the convention takes place. Philadelphia’s mayor is term-limited, and of New Yorkers would e-hail—despite the mayor’s Columbus’ mayor is not running for re-election. ¶ Mr. de Blasio, who will be in office until at wouldn’t mind the national platform to trumpet his anti-inequality pleas to keep off the roads. If Uber demanded $50, least the end of 2017, obviously message more people would stay home or brave the elements . But any fear he would steal the spotlight from the nominee is unfounded, his aides say. Laura Santucci on foot. So I asked the Taxi Safety folks to explain “The nominee is the nominee,” said Chief of Staff . —andrew j. hawkins their logic.The reply: “More Uber drivers are going DIGITAL DOLLARS. News site Business Spade will close 19 Saturday stores, to be out there trying to pick up passengers with the Insider raised $25 million from a which carry its lower-priced casual HOORAY! escalated fees.” Of course, the drivers are already out group of investors that included line, and 12 outposts for its men’s THE HISTORIC there—they just switch to Uber during surge Amazon founder Jeff Bezos, boost- brand, Jack Spade. Jones New York BROOKLYN ing its valuation to $200 million— also announced plans to shutter all of PARAMOUNT pricing. Fewer rides, more money.The real problem THEATRE will nearly seven times last year’s revenue. its 127 outlet stores and discontinue come back to life with surge pricing is it’s too low—capped by state Also last week, tech site Mashable its wholesale business. … A PIECE OF as a music announced it received $17 million in 3 WTC. Accredited investors can buy a venue, hosting Attorney General Eric Schneiderman in his dogged its first show in quest to stop “price gouging.” Price caps are why cabs a funding round led by Time Warner stake in 3 World Trade Center for as more than 50 Investments,and Gawker Media said little as $5,000 through crowdfund- years. are scarce during downpours, and why gas stations it is raising $15 million in a debt ing platform Fundrise.… MORE BICY- had long lines or ran dry for two weeks after round. … S&P TO SETTLE. The Justice CLES. New Citi Bike stations are slat- Superstorm Sandy; suppliers wouldn’t truck in fuel Department and 20 states are close to ed for the Upper West Side and that had to be sold at a loss. We had Soviet bread striking a $1.37 billion settlement Upper East Side in Manhattan; OY VEY! with Standard & Poor’s Ratings Greenpoint and Williamsburg in RENT IS TOO lines right here in New York. No, I’m not calling Mr. Services, resolving allegations that Brooklyn; and Long Island City in DAMN HIGH Schneiderman a socialist.That’s just my spin. the agency inflated grades of mort- Queens.This is part of the bike-share PARTY leader Jimmy McMillan gage bonds before the financial crisis. program’s plans to double in size by tried fighting his It would be the largest such settle- 2017. … CULTURE FIX. Museums and eviction from a ment. … SNOWSTORM SAGA. Even other cultural institutions spent $1.3 rent-stabilized East THIS WEEK IN CRAIN’S Village apartment. though last week’s billion on construc- A judge tossed out snowstorm was sev- tion projects between his suit. IN THE BOROUGHS------‘Terrorism is 3 eral feet shy of expec- 2010 and 2014, cre- ap images IN THE MARKETS------4 tations, small busi- not going ating 10,000 jobs,ac- nesses throughout cording to New York THE INSIDER ------5 the city suffered be- away’ Building Congress Authority of New York and New Jer- —Police Commissioner OPINION------8 cause of a citywide data. … MAYOR’S sey’s airports last year, an all-time transit shutdown. William Bratton, unveiling DOMAIN. Billdeblasio high. JFK and LaGuardia airports GREG DAVID ------9 Among those sur- the NYPD’s new .nyc was purchased reached record peaks, with 53.2 mil- counterterrorism efforts REAL ESTATE------10 prised by Gov. An- by a Publishers lion and 26.9 million passengers, re- drew Cuomo’s an- Clearing House dig- spectively. … GAME-TIME ADS. Days SMALL BUSINESS------10 nouncement to close the subway ital developer for a mere $10. The before the Super Bowl, NBC an- REPORT: HEALTH CARE ------11 system was Mayor Bill de Blasio,who mayor wanted to bid on the domain, nounced it sold all its ad slots during learned of the decision minutes be- but his staff lost track of the auction. the game. Advertisers were charged THE LIST ------13 fore everyone else did. … RETAILERS … FLYING HIGH. Some 117.1 million up to $4.5 million for 30 seconds. GOTHAM GIGS CLASSIFIEDS ------16 DROP THE AX. By this summer, Kate passengers traveled through the Port —emily laermer Public Art Fund’s Nicholas NEW YORK, NEW YORK ------Baume brings installations 21 to the streets. P. 6 SOURCE MEETING ------22 vol. xxxi, no. 5, february 2, 2015—Crain’s New York Business (issn 8756-789x) is STORIES TO WATCH THIS WEEK published weekly, except for double issues the weeks of June 29, July 13, July 27, Aug. 10, Aug. 24 and Dec. 21, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Post- Feb. 2: Groundhog Feb. 3: Mayor Bill Feb. 4: Deadline Feb. 8: 57th master: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Day ceremony at de Blasio delivers for U.S. to submit annual Grammy Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379.Fax (313) 446-6777.$3.00 a copy,$99.95 one Staten Island Zoo; State of the City paperwork to drop Awards year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. mayor won’t hold address. IBM insider- critter trading charges

2 | Crain’s New York Business | February 2, 2015 20150202-NEWS--0003-NAT-CCI-CN_-- 1/30/2015 6:48 PM Page 1

IN THE BOROUGHS BROOKLYN Barroom brawl roils Bed-Stuy Locals heed warning from liquored-up Williamsburg

BY JOE ANUTA

In the past year, the number of es- tablishments holding liquor licenses FASHION STATEMENT: in Brooklyn’s Bedford-Stuyvesant Manufacture New York has jumped about 25%,to nearly 90. moved its incubator And with another 29 applications program to Liberty View for bars or restaurants in the ap- Industrial Plaza in proval process, some residents say Sunset Park, Brooklyn. they’ve had their fill. “That’s all we’re seeing now:bars,

buck ennis bars, bars,” said Bernice Moses, standing at the door of a brownstone along a handsome street that she has called home for more than 30 years. “Enough is enough.” Reversing material losses As president of the Lefferts Place Block Association, she is working with a growing number of the program’s resources, Ms. Copeman gained ping up to reverse the slide. her neighbors to pressure the local NYC accelerators launch, access to pattern makers, cutters and sewers, and There’s a recently unveiled 21,000-square- community board to reject liquor-li- even won a design competition. foot design accelerator from Pratt Institute in cense applications for planned wa- expand as garment “My business is still in development—I work South Williamsburg, Brooklyn. Manufacture tering holes. Pushing back, howev- manufacturing plummets in a tiny studio apartment in Chelsea,and my of- New York just relocated to a 160,000-square- er, are newer-vintage residents and fice is underneath my bed,” explained the 40- foot facility in Sunset Park, Brooklyn. And the business owners eager to have more year-old designer, who hopes to have a full col- Council of Fashion Designers of America hosts places to socialize.Bars,they also ar- BY ADRIANNE PASQUARELLI lection by the fall.“But they’re offering space for a shared workspace for established yet growing gue, help draw more people out on designers like me who want to rent a spot and use firms in midtown. the street after dark,something they When Rebecca Copeman wanted to get her their machinery.” Their mantra is simple: Produce here, and see as good for business as well as swimwear business off the ground last year, she With apparel manufacturing plummeting in reap the rewards of access to industry profession- public safety. turned to Manufacture New York, a fashion in- the city, a number of programs aimed at foster- als, shared resources and education at a low op- “Half the people will say, ‘I want cubator geared toward local production. Using ing a new generation of fashion talent are pop- See APPAREL on Page 20 See BED-STUY on Page 18 Michael Bloomberg wants STATS AND THE CITY by Nicholas Wells EAT UP: Shake Shack raised $105 million in an initial public offering last week. The burger chain founded by restaurateur Danny Meyer has quickly to be king of the media world outgrown its Madison Square Park beginnings. (See more on the IPO on P. 20.) NUMBER of ShackBurgers Mr. Meyer could buy with his Businessweek; lots of video; various up from $8.2 billion the year before, 29.9M$155 million stake at the company’s initial offering price Flashy new website sites devoted to opinion, politics, according to Burton-Taylor Inter- technology, finance and culture; and national Consulting. More than NUMBER of Shake Shacks in the United Arab Emirates, the most brings a billionaire’s outside New York. The chain has a total of 63 worldwide cable channel Bloomberg TV. 80% of that came from its 320,000 10 postmayoral Bloomberg LP has long stood terminals, which cost subscribers TOTAL CALORIES in a meal including a double ambitions into focus out among media companies for its north of $20,000 a year. A spokes- ShackBurger, regular fries and a regular chocolate concrete woman for privately held 1,880 Bloomberg LP declined to com- NUMBER of the city’s 434 BY MATTHEW FLAMM ‘Our goal is ment on the revenue figures. Department of Health-graded 1burger restaurants with a C rating: Michael Bloomberg’s return in Jan- to become the Newly irreverent a McDonald’s in Whitestone, uary to running the company he Yet the feel of the company’s Queens founded, and the long-awaited leading global content—produced by 2,400 jour- launch last week of a flagship web- nalists, more than The New York site for his sprawling news organi- business-media Times and The Wall Street Journal $294M zation, finally answers the question combined—hearkened back to the TOTAL ANNUAL SALES for New York state’s 13,559 surrounding his postmayoral ambi- company’ era of floppy disks.Lots of black and cattle farms tions: He wants to be the king of fluorescent orange. Utilitarian but business media. not user-friendly. Sources: Shake Shack, COST of Le Burger Extravagant at Rebranded as Bloomberg Busi- The irreverent look and feel of U.S. Securities and Exchange Commission, NYC OpenData, $295 Serendipity 3—the world’s most ness, the new Bloomberg.com puts Bloomberg Businessweek has in- NYS Department of Agriculture & expensive burger. It features Japanese Wagyu Markets, Guinness into one digitally deft package the extraordinarily deep pockets and the formed the redesign of Book of World Records beef with black truffles in a gold-dusted roll

company’s round-the-clock clunky presentation of its journalis- Bloomberg.com. Now snappy bloomberg news Bloomberg News operation;its three tic riches. The company brought in headlines and eye-catching graph- ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY magazines, including Bloomberg about $9 billion in revenue in 2014, See BLOOMBERG on Page 20

February 2, 2015 | Crain’s New York Business | 3 20150202-NEWS--0004-NAT-CCI-CN_-- 1/30/2015 6:48 PM Page 1 IN THE Prominent social-service MARKETS nonprofit to shut down by Aaron Elstein

LESS HESS: $19 million loss 281 people in April. financially because there is not Company scion The city will ask nonprofits to enough money in government con- John Hess lost his at FEGS last year take over all 28 of its contracts with tracts,” said Allison Sesso, executive chairmanship after FEGS,according to sources.Mean- director of the Human Services a proxy fight led by triggers closure hedge fund Elliott while, the state already started to Council, a nonprofit membership Management Corp. search for nonprofits to absorb organization. “We don’t want to get BY THERESA AGOVINO FEGS’ contract to provide services to the point where the services de- to the developmentally disabled. livered are determined by what is fi- A nonprofit serving the city’s vul- Founded 80 years ago,FEGS is a nancially feasible.That shouldn’t be nerable population said Friday it $250 million agency that primarily the basis of the decision.” will shut down after reporting an relies on government money to pro- unexpected $19.4 million loss in vide a wide array of services—in- Inadequate payments 2014. cluding job training, housing and The group recently issued a re- Now city and state officials are home health care—for the sick, dis- port that suggested New York City scrambling to find organizations to abled and elderly. nonprofits lost $1 billion in reim- take over contracts held by Federa- The FEGS bombshell comes as bursements since 2009 because of tion Employment and Guidance government officials brace for a pos- the recession. Service Inc., one of the country’s sible call to find groups to take over A spokeswoman for New York

largest social-service agencies. contracts held by the Metropolitan City said that it “works very closely bloomberg news Council on Jewish Poverty.The Met with our nonprofit partners to en- Salvage impossible Council’s problems stem from a sure adequate levels of funding for The transfers will take place over kickback scheme involving former the service levels we contract for. For Hess, oil’s well several months, according to a Chief Executive William Rapfogel. The sector was hit hard by the eco- spokeswoman. FEGS worked with Observers believe FEGS’ losses are nomic downturn, which some are financial and restructuring experts not a result of illegal activities. still struggling to overcome.” She as well as funders and others to sal- Instead, FEGS’ financial woes added that the city provides training that ends well vage the nonprofit, according to a may be driven by the vast chal- and assistance to nonprofits to help statement, before it decided such lenges facing social-service agen- them operate more efficiently. steps were not feasible. cies in the city, triggered by high As the nonprofits’ financial con- imes are tough at Hess Corp., as they are for everybody “The analysis showed that the fi- demand and low reimbursement. ditions deteriorate, mergers become in the oil business.The Manhattan-based energy nancial situation which FEGS con- Mergers are one result, like last more complicated. Mike Whelan, explorer reported an $8 million fourth-quarter loss fronts was too deep to be resolved by year’s coupling of two nonprofits chief financial officer of SUS, cau- T continuing to run its programs,” the that provide help to vulnerable tioned that strong organizations can last week, an enormous swing from its $1.9 billion profit in spokeswoman said. groups—Services for the Under- jeopardize their operations if they the same period a year earlier.This year, analysts believe, the She didn’t say what caused the Served (SUS) and Palladia. take a chance on a deeply flawed company will post a loss of $400 million. Meanwhile, Hess stunning loss. But the outcome More mergers and closures could partner. said it would cut capital spending and significantly scale back wasn’t unexpected. Two weeks ago, be ahead, some of them triggered by In any merger, Mr. Whelan said, FEGS notified the state Depart- the state’s many Medicaid reforms. “you don’t want to deal with a finan- share repurchases. No wonder the company’s stock slid 6% ment of Labor that it would lay off “Nonprofits are really struggling cial basket case.” Ⅲ last week and is down 10% during the past 12 months. This probably isn’t what anyone had in mind when an activist investor won a bitter battle for control two years ago and forced Chief Executive John Hess to radically restructure CRAIN’S the company founded by his father. Surprisingly, as grim as things may appear, the story at Brian Gibbons, an analyst at inde- Hess shows how a well-placed dose pendent research firm CreditSights, of activism can deliver tangible said the activist campaign benefited arts&&culture benefits to shareholders. Hess by forcing it to sell less- arts culture To refresh your memory, in Jan- productive assets to focus on the ex- BREAKFAST uary 2013 a hedge fund called Elliott ploration business, which should Management Corp. started howling generate high returns if and when for changes at Hess. The stock had oil rebounds. “They’ve got lots of underperformed for years, costs cash from the asset sales and a were high, and the board seemed strong balance sheet that can fund complacent. Rather than try to capital expenditures in the future,” compete with full-service giants he said. like Chevron and ExxonMobil, Hess So has the Sturm und Drang should shrink and focus on energy been worth it? Well, in the period Photo Credit: Buck Ennis, Crain’s New York Business extraction, Elliott urged. After a running from just before Elliott Join us as we sit down with New York’s cultural thought leaders to discuss Wednesday, March 4, 2015 rip-roaring proxy fight, nine out of kicked off its campaign two years the vision and priorities for one of New York’s thriving industries and the 14 directors were replaced, Mr. ago to today, Hess’s share price has Con Edison Conference Center Hess lost his chairmanship, and the returned 14%. In contrast, similar- vital role the industry plays on driving the city’s economy. 4 Irving Place company began following Elliott’s ly sized explorers as a group have ARMCHAIR DISCUSSIONS: 8:00 a.m. – 8:30 a.m. Networking Breakfast playbook. seen their stock fall 8%. The company sold more than The biggest gains may be yet to Jed Bernstein, President, Lincoln Center for the Performing Arts 8:30 a.m. – 10:00 a.m. Program $10 billion worth of assets before come, however. That’s because Majority Leader Jimmy Van Bramer, Chair, Cultural Affairs and Cost to Attend: oil prices imploded—sales that Hess has valuable properties in the Libraries Committee, New York City Council $115 for individual ticket(s) equaled a third of the company’s North Dakota shale formations, Shelly B. Lazarus, Chairman Emeritus, Ogilvy & Mather, Board of $1,150 for priority reserved table(s) of 10 enterprise value. The most notable which make it a tempting takeover thing to go was Hess’s chain of gas target. And with a market value of Directors, Lincoln Center for the Performing Arts You must be pre-registered to attend this event. No refunds permitted. stations. Hess then used a big hunk $19 billion, the slimmed-down of that cash to buy back $5.3 billion Hess is a bite-size buy for a major For more information: Ⅲ Register Today >> Adrienne Yee worth of shares. oil company. www.crainsnewyork.com/events-artmarch2015 Phone: 212-210-0739 Host Sponsor: Email: [email protected] AMOUNT it costs in U.S. dollars to buy one euro. Supporting Sponsor: $1.1294 The dollar is its For sponsorship information, contact Joanna Harp strongest relative to the euro since the spring of 2003 at 212-210-0278 or [email protected].

istockphoto and has gained nearly 20% in the past year.

4 | Crain’s New York Business | February 2, 2015 20150202-NEWS--0005-NAT-CCI-CN_-- 1/30/2015 7:40 PM Page 1 THE speaker, while the mayor supported Melissa Mark-Viverito, who won. And INSIDER Mr. Silver was more philosophical- by Andrew J. Hawkins ly aligned with the mayor than Mr. Heastie is expected to be. “The Bronx-Queens crowd are seen as far more moderate than the progres- The more things change ... sives on a host of issues,” said one business leader. ssembly Democrats are experimenting with As for Mr. Heastie, his most democracy for the first time in a generation, and are prominent legislative success was spearheading passage of former finding it a bit messy. A variety of interests—unions, A ap images Mayor Michael Bloomberg’s outer- lobbyists and other politicians—tried last week to influence borough taxi plan. (Mr. de Blasio the vote for a new Assembly speaker, while members sought Wolfe, a top aide to the mayor, and Mr. Heastie, who was elected in opposed it but now supports green to hold those influences at bay. At press time, the conference Alison Hirsh, political director for 2001 and became Bronx Democra- cabs.) He has no real enemies aside building-workers union 32BJ, were tic leader in a 2008 coup, in a posi- from the Bronx Democratic leaders was all but certain to name the Bronx’s Carl Heastie (pictured) said to be making calls in Mr. Heas- tive light. he and now-Bronx Borough Presi- to succeed scandal-scarred Sheldon Silver. tie’s favor. Mr. de Blasio’s office de- “He is not on the payroll of a dent Rubén Díaz Jr. ousted. Election nies interfering, but Assemblyman personal-injury law firm, so we are lawyer, lobbyist and political fixer “There’s a real palpable sense that said one Assembly Democrat. “I Joseph Lentol, D-Brooklyn, said he certainly better off than before,”said Stanley Schlein is a close friend. Mr. this is the first time they’ve had to haven’t gotten any calls from [the lost because the mayor, governor and Tom Stebbins, executive director of Heastie’s only outside income elect a speaker, and they don’t want United Federation of Teachers] or county leaders didn’t support him. the Lawsuit Reform Alliance,refer- comes from an adjunct-professor everyone else jumping in,” said one 1199 or the governor or the mayor. As one former Assembly Demo- ring to Mr.Silver and his opposition gig at Monroe College. Democratic operative close to organ- All that stuff is floating around, but crat sniped, “Only in Albany is a to tort reform. He eschews the spotlight and, ized labor. “Both the mayor and the had I gotten it,my recommendation speaker picked by the mayor and Some business insiders argue like Mr. Silver, is known as taciturn governor are aware [of it].The unions would be not to interfere.” county bosses considered reform.” that Mr. Heastie’s ascendency could and thoughtful. are aware.And they don’t want to cre- Manhattan Assemblyman Richard Interest groups will surely have a be bad news for Mr. de Blasio’s pro- “Carl is a bookkeeper,” said ate an unintended dynamic.” Gottfried, the chamber’s longest- say. Mr. Heastie is an ally of health gressive movement. Bronx and Bronx-based political columnist Bob Corruption charges against Mr. serving member, agreed. “We look at care workers’ union 1199 SEIU, a Queens Democrats in 2013 backed Kappstatter. “Have you ever seen an Silver, the speaker since 1994, made this as choosing the person who will prime driver for raising the mini- Daniel Garodnick for City Council exciting accountant?” Ⅲ members sensitive to the taint that be our chief administrative officer,”he mum wage. (Asked to comment on outside interference on their delib- said. “We want that person to repre- Mr. Heastie, 1199 political director erations could bring. Involvement sent the Assembly majority’s agenda, Kevin Finnegan said, “Not a chance.”) QUOTE OF THE WEEK: ‘I am the speaker. ... from the city’s powerful county not someone else’s.” Of the $201,737 raised by Mr. leaders has drawn editorial-board Not everyone’s convinced. Some Heastie during the 2012 election I’m standing. And I’m going to be criticism, but Assembly Democrats see the invisible hand of Mayor Bill de cycle, $42,250 came from labor and said the race was member-driven. Blasio, who was said to prefer Mr. $35,800 from the real estate,finance standing for a long time’ “We do not want our thoughts Heastie, as well as county bosses like and insurance sectors. —Sheldon Silver on Jan. 26, one day before Assembly Democrats decided to replace him as speaker on this delicate process controlled,” Rep. Joseph Crowley of Queens. Emma Business sources cast the rise of

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February 2, 2015 | Crain’s New York Business | 5 20150202-NEWS--0006-NAT-CCI-CN_-- 1/30/2015 11:46 AM Page 1

BUSINESS 70% Portion of all U.S. subway riders who are in NYC PEOPLE Source: NYS governor’s office

EXECUTIVE MOVES

Wist Preservation Associates: Ronda Wist, 58, became president of the historic- preservation con- sulting firm, which she founded. She was previously vice president for preservation and gov- ernment relations at the Municipal Art Society. Goodwin Procter: Michael Barton,46, joined the law firm as chief financial officer. He was previously chief financial officer at Rothstein Kass. New York Theatre Ballet: Anna Kepe- Haas, 37, joined the chamber ballet company as executive director. She was previously the executive director of Greater Bridgeport Youth Orchestras. Office of New York Gov. Andrew Cuomo: Christine Quinn, 48, was appointed special adviser to the governor. She was previously speaker of the New York City Council. Saatchi & Saatchi New York: Paul Bichler, 42, joined the advertising agency as executive creative director. BLIND EYE: Nicholas He was previously group creative Baume’s challenge is director at Droga5. to make sure people Luca Lorenzini,38, know that his joined as global cre- organization is ative director. He behind exhibits like was previously a Sui Jianguo’s Blind creative director at Portraits, on display in Central Park until Saatchi & Saatchi Feb. 20. Milan. Luca Pannese,39, joined as global cre- ative director. He was previously a

buck ennis creative director at Saatchi & Saatchi Milan. GOTHAM GIGS Colliers International: James De Luca, 52, joined the commercial real estate firm as senior managing director. He was previously a senior director at Cushman & Wakefield. Nardello & Co.: Audrey E. Stone,51, joined the global investigations firm He makes private art public as managing director. She was previ- ously the second deputy district attorney and chief of the special pros- ecutions division at the Westchester Nicholas Baume brings installations to the streets County District Attorney’s Office. Related Cos.: Stephen Earle,54, “If you have to ask yourself whether you’re an contemporary art and to support artists. ¶ “I want joined the real estate development Giving firm as senior vice president and cre- artist, you’re not.”Those words from a teacher to give artists the opportunity to do things they ative director, a newly created posi- artists the forced Nicholas Baume to come to a difficult would never otherwise have the chance to do,” he tion. He was previously senior vice president of home design at Ralph realization: “I wasn’t either talented enough or said. ¶ In the past five years, the nonprofit has Lauren. chance to driven enough to be an artist,” Mr. Baume said. ¶ managed to more than double its budget—to Norton Rose Ful- bright: Anna Lee,46, ‘do things Luckily, the native Australian, 49, found an outlet $5 million from $2 million. In March, the was promoted to elsewhere for his lifelong love of art. After organization will bring its next project to life, in partner at the law they would curatorial roles at the Museum of Contemporary Central Park’s Doris C. Freedman Plaza.Tatiana firm. She was previ- ously senior never Art in Sydney and the Institute of Contemporary Trouvé’s Desire Lines consists of 212 wooden counsel. Art in Boston, Mr. Baume became chief curator spools of rope, representing the 212 paths that Connelly McLaughlin otherwise & Woloz: Jeffrey and director of the Public Art Fund in 2009.The wind through the park. ¶ The fund has low Rodus, 46, joined the public-affairs organization commissions art projects in plazas overhead because it doesn’t have a brick-and- firm as senior vice president. He was do’ previously deputy chief of staff to and parks citywide. ¶ It’s not easy to miss the site- mortar presence.That means that observers may City Council Speaker Melissa Mark- specific installations. Jeff Koons’ Split-Rocker at not know who put the art there or why.“A Viverito. Rockefeller Center, John Gerrard’s Solar Reserve challenge for us has been creating an identity,” Juilliard School: Maurice F. Edelson, 51, joined the music school as vice at Lincoln Center, and Sui Jianguo’s Blind Mr. Baume said. “If we’re in the business of trying president and general counsel. He Portraits in Central Park were among the eight to raise money to fund these projects and people was previously senior vice president and deputy general counsel at Time exhibitions the nonprofit mounted last year. Mr. don’t know who we are, they’re not going to Warner Inc. Baume’s mission is twofold: to expand access to support us.” —nazish dholakia —nazish dholakia

6 | Crain’s New York Business | February 2, 2015 NEW Presents YORK STORIES

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Crains New York @crainsnewyork 20150202-NEWS--0008-NAT-CCI-CN_-- 1/30/2015 12:32 PM Page 1

OPINION CRAIN’S NEW YORK BUSINESS

Fix the causes of corruption Rance Crain editor in chief publisher, vp Jill R. Kaplan he question comes up after every old phenomenon? No, but revoking the pensions of EDITORIAL corruption scandal in New York: Why convicted lawmakers would be a powerful deterrent. Mr. editor Glenn Coleman managing editor Jeremy Smerd does it keep happening? The causes are Silver carried out his acts without fear of losing retirement deputy managing editors Valerie Block, Erik Ipsen many, but three factors stand out. benefits worth about $1.2 million. A constitutional assistant managing editors Barbara Benson, Temptation. State legislators receive a amendment might be needed to enact this reform. Erik Engquist senior news producer Amanda Fung base salary of $79,500, plus stipends and Ambiguity. Mr. Silver might have viewed the line contributing editor Elaine Pofeldt travel expenses that can take them into the between legal referrals and illegal kickbacks as blurry— columnists Greg David, Steve Hindy, Alair Townsend senior reporters Theresa Agovino, $100,000 range. It’s hardly a windfall. Yet these lawmakers reasoning that his fees were not demonstrably related to his Aaron Elstein, Lisa Fickenscher, Matthew Flamm, make decisions worth millions of dollars to various public-service position. The experience of the speaker’s Daniel Geiger, Adrianne Pasquarelli T reporters Joe Anuta, Chris Bragg, constituencies while having to divulge little about their former counterpart in the state Senate, Joseph Bruno, Andrew J. Hawkins, Irina Ivanova, Jonathan LaMantia, Thornton McEnery outside income. It is hardly surprising that some try to further blurred this news producer Emily Laermer leverage their power for personal gain. line: Mr. Bruno’s web reporter/producer Nazish Dholakia Reduce art director Steven Krupinski Pay raises have been floated as a way to reduce that conviction for taking deputy art director Carolyn McClain temptation, but there is no evidence this would make any temptation, “consulting fees” from staff photographer Buck Ennis copy desk chief Steve Noveck difference. Sheldon Silver’s salary as Assembly speaker was clients with business copy editor Thaddeus Rutkowski $121,000, but he still maneuvered to earn millions more enhance before the Senate was data editor Suzanne Panara researchers Jessica Kramer, Nicholas Wells from entities that benefited from his actions as speaker, deterrence overturned after the editorial intern Yoona Ha according to a federal complaint. State legislators’ pay and law that prosecutors ADVERTISING advertising director Joanna Harp their corruption rate are both among the highest in the relied on was ruled sales manager Irene Bar-Am nation. Raising one won’t lower the other. unconstitutionally senior account managers Jill Bottomley Kunkes, Courtney McCombs, If lawmakers are allowed to continue to receive outside vague. The U.S. Rob Pierce income, the public needs to know exactly where it’s coming Congress and the state should rewrite their statutes to account managers Zita Doktor, Stuart Smilowitz sales coordinator LeAnn Richardson from and what was done to earn it.The current lack of make it crystal clear what is illegal. credit manager Jason Hogan (313-446-0353) transparency creates opportunity that some elected officials Eliminating corruption might be impossible, but it could CUSTOM CONTENT, EVENTS AND PRODUCTION cannot resist. certainly be reduced by enhancing transparency, director of custom content Trish Henry director of audience & content Arrogance. Corrupt elected officials have something in strengthening deterrence and removing ambiguity from the partnership development Michael O’Connor director of conferences & events common with most other criminals: They don’t think they’re law. With legislators under pressure to respond to their latest Courtney Williams going to get caught. Is there a legislative solution to this age- shameful episode, the chance to make these changes is now. events coordinator Adrienne Yee events coordinator & scheduler Alexis Sinclair reprint account executive Alicia Samuel COMMENTS media services manager Nicole Spell CRAIN’S ONLINE POLL ONLINE AND INTERACTIVE SERVICES general manager Rosemary Maggiore TO SUBSCRIBE: For print and digital subscriptions or customer All fired up by column service, e-mail [email protected] or call 877-824-9379 (in the U.S. and Canada) or retirements—are misguided. drives me crazy to see New 313-446-0450 (all other locations). $3.00 a copy for UNION CHIEF RESPONDS the print edition; or $99.95 one year, $179.95 two TO ALAIR TOWNSEND To simply say “two-thirds of Yorkers toting their groceries or years, for print subscriptions with digital access. firefighters retire on disability” whatever in plastic bags. www.crainsnewyork.com/subscribe As head of the city’s largest without recognizing that I never leave home without TO ADVERTISE: firefighters’ union, I disagree thousands of firefighters have my backpack, which has at least Contact Joanna Harp at [email protected] bloomberg news wholeheartedly with Alair been stricken with cancers and one reusable bag in it. What if or call 212-210-0278. DID MAYOR BILL DE BLASIO Townsend’s Jan. 26 column other diseases, while more than every New Yorker carried a www.crainsnewyork.com/advertise (“Mayor should resist cop 100 have since perished from reusable bag? Would it save the FOR INFORMATION ON OUR EVENTS: AND GOV. ANDREW CUOMO pension rollback”) for safety, their service following the 9/11 world? Well, it would certainly Contact Courtney Williams at security and financial reasons. attacks, is misleading. change the look of our streets [email protected] or 212-210-0257. OVERREACT TO LAST Since January 2013, the Being a New York City and in turn change the world! www.crainsnewyork.com/events WEEK’S SNOWSTORM? FDNY has hired some 1,400 firefighter is one of the most I guarantee that every New TO CONTACT THE NEWSROOM: new firefighters. If any of these dangerous professions in our Yorker on every single street 685 Third Ave., New York, NY 10017-4024 Yes. In the era of global warming, we have probationary firefighters are nation, and firefighters should can find a loose plastic bag editorial phone: 212-210-0277 become too anxious. seriously burned, injured, always be 100% focused on their floating around or swamped in fax 212-210-0799 Entire contents ©copyright 2015 Crain Communications Inc. No. Better safe than sorry. paralyzed or permanently responsibilities in any fire or a puddle or clinging to a fence. All rights reserved. ®CityBusiness is a registered trademark disabled in the line of duty, the emergency.To be distracted by The City Council might fi- of MCP Inc., used under license agreement. Date of poll: Jan. 27 approximate value of their “what if ” concerns about who is nally follow many West Coast CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS 253 votes disability protection amounts cities in implementing a nomi- going to take care of their family chairman Keith E. Crain to only $27 a day. Would you if they’re seriously injured is not nal fee on plastic bags. Why is president Rance Crain risk your life and health for good for public safety. this taking so long? We are in a treasurer Mary Kay Crain $27 a day? Could you afford to —steve cassidy sad state when it requires a 10- Cindi Crain live, to raise a family, while President cent fee on these bags for us to executive vp, operations William Morrow 41% permanently disabled, on that Uniformed Firefighters curtail their use. I think that executive vp, director of strategic Chris Crain Yes operations budget? I think not. Association whatever your political leanings, executive vp, director of corporate 59% Ms. Townsend’s everybody should always carry a operations K.C. Crain No criticisms—likely based upon reusable bag. At least with the senior vp, group publisher David Klein the city actuary’s flawed TOO MUCH BAGGAGE fee, you’d think twice about vp/production, manufacturing David Kamis calculations, which ignored the leaving home empty-handed. chief financial officer Thomas Stevens chief information officer Anthony DiPonio anomaly of the 9/11 attacks’ Re “Bag fee a cheap way to save —david camacho impact on forced disability the planet” (Op-ed, Jan. 26): It Manhattan founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) secretary Merrilee Crain (1942-2012) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

8 | Crain’s New York Business | February 2, 2015 20150202-NEWS--0009-NAT-CCI-CN_-- 1/30/2015 12:33 PM Page 1

STEVE ROSENBERG distribution of regional food and bet- ter implement city procurement AND KAREN WASHINGTON policies to purchase more local food for schools and other institutions. Break Away... In addition,we must create a pub- Secure the city’s lic-private food-equity infrastructure partnership that gives New York City farmers—there are dozens of urban and make your business better local food supply farms and more than 1,000 commu- nity gardens—the tools and capital to continue contributing to the local ll New Yorkers deserve reliable access to fresh,local food supply. Building on the city’s food.It improves our health,sustains our economy, successful GreenThumb program at feeds our culture and increases our resiliency dur- city parks and GrowNYC’s impres- ing emergencies.Yet unmet demand for regionally sive Open Space Greening program, partners in this initiative should in- produced food is at an all-time high—almost $1 clude leading philanthropies, non- Abillion annually. profits that support access to local How can we narrow this gap? Foremost, it’s essential to pro- food, and the city itself, which would tect the city’s regional “foodshed”—much of which is located in catalyze commitments by others. This partnership must involve the Hudson Valley. According to fact, Gov. Andrew Cuomo has just those who lack the financial resources Scenic Hudson’s NYC/Hudson proposed investing $20 million to to participate fully. It could provide Industries served: Valley Foodshed Conservation conserve Hudson Valley farms. training for living-wage food jobs, Financial Services . Manufacturing & Distribution . Technology Plan,89% of the valley’s farmland— This can be accomplished with fund urban agricultural infrastructure 1RWIRU3URÀW . Retail . Construction . Architecture & Engineering an important, dependable supplier conservation easements—paying and ownership of healthy-food busi- Real Estate . Healthcare . Transportation & Shipping of local food to city greenmarkets, farmers a portion of their land’s value nesses, and protect our urban farms Media, Entertainment & Telecommunications restaurants, community-supported to keep it permanently available for and gardens. Special efforts must be agriculture operations and food agriculture. With land prices reason- made to direct resources to low-in- pantries—is at risk of development. able,public interest high,and farmers come neighborhoods, giving resi- 488 Madison Avenue, New York, NY 10022 Following Hurricane Sandy, valley and conservation organizations dents the tools to become investors in, 50 Jericho Quadrangle, Jericho, NY 11753 10 Esquire Road, New City, NY 10956 farmers delivered some of the only standing by,it’s time to get this done. and owners of, their food system, as www.grassicpas.com fresh food available in city markets. Protecting Hudson Valley farm- well as educated consumers. A precedent exists for safeguard- land through conservation ease- Together, these bold strokes will ing this land: To secure its water ments will enable farmers to invest ensure that those with the greatest PROMOTE. supply, New York City launched an in their operations and make it more need receive the greatest benefit, Why not? innovative program in the 1990s to affordable for the next generation of leading to a more robust, resilient Let the Custom Reprint Department help you promote this great press. conserve open space around its up- farmers, resulting in increased and equitable regional food system.

CRAIN’S® N E W YORK BUSIN ESS

state reservoirs. Now the city can be productivity. VOL. XXXI, NO. 1 WWW.CRAINSNEWYORK.COM JANUARY 5-11, 2015 CRAIN’S® N E W YORK BUSIN ESS

VOL. XXXI, NO. 1 WWW.CRAINSNEWYORK.COM OPINION JANUARY 5-11, 2015 CRAIN’S® NEW YORK BUSINESS CRAIN’S® N E W YORK BUSIN ESS OPINION VOL. XXIX, NO. 39 WWW.CRAINSNEWYORK.COM SEPTEMBER 30, 2013 ExpandVOL. XXXI, NO. 1 WWW.CRAINSNEWYORK.COMthe Frick museum JANUARY 5-11, 2015

mong the many things hang their coats and use the bathrooms. expansion plan the Frick envisioned all Expand thethat makeFrick New York City Modern museum wheelchairs cannot fit through those years ago. NY Area’s Largest Accounting Firms Steve Rosenberg is senior vice president great are its museums. the doors. The museum’s thoughtfully updated a national leader by partnering with But ramping up food supplies will OPINION Ranked by number of area professionals More than 100 of them, Decades ago, museum officials and designed proposal, which requires each with its own bought and demolished three adjacent both a zoning exception and landmarks         $ mong the many things hang their coats and use the bathrooms. expansion plan the Frick envisioned all    #$$      $  & # character, enhance the quality of life for buildings to expand their Fifth Avenue commission approval, is to replace the      !  #  % $& ' &     !  !!  that make New YorkA City Modern wheelchairs cannot fit through those years ago.           "     !    !    ! "  "  residents and keep tourism dollars institution and connect it to the Frick private garden with a public one on the great are its museums.flowing intothe locals’doors. pockets. Art ReferenceThe Library. museum’s They thoughtfully couldn’t updatedroof of a new addition. The neighbors’ (   B190'9 %&@E341B  " !  ! "! / Expand the Frick museum 6GPUd`Y$gQ hhhahII`X  +   +  !+ More than 100 of them, Decades ago, museum officials and designed proposal, which requires Among the many things that make afford to do the project then, so they kvetching, boiled down, is that they will 7QhE`cV7E each with its own bought and demolished three adjacent both a zoning exception and landmarks the city infuriating are its kvetchers. created a splendid private garden on the lose their view of a closed garden. We )*+, -.*/   ")@DD%'7750'H    " ! / character, enhance the quality of Theselife for arebuildings the folks to expand who theirreact Fifth to Avenue commission approval, is to replaceside the with the other 8.3 million New AUXQd@bfGcQ hhhQpI`X 5)4'179C1BB' !+ "+ + A mong the many things hang their coats and use the bathrooms. expansion plan the Frick envisioned all 7QhE`cV7E residents and keep tourism dollarschange byinstitution asking, “What’sand connect in itit tofor the Frick private garden with a public one Yorkerson the and 55 million tourists who flowing into locals’ pockets. Art Reference Library. thatThey make couldn’t TheNew York roofpublic Cityof a newModern addition. wheelchairs The neighbors’ cannot fit through those years ago.   !"  !@(1BD %'BB1DD    "   ! / me?” They bemoan any idea that would get a garden they can visit—and 8GcV$gQ hhhVaXSI`Xfd  + "+ + Among the many things that make afford to do the projectgreat then, areso theyits museums.kvetching, boiledthe doors. down, is that they will The museum’s thoughtfully updated 7QhE`cV7E might inconvenience them. More thanbenefits 100 of them, offsetDecades ago, museuma vastly officialssuperior “houseand designed museum” proposal, which requires the city infuriating are its kvetchers.Whichcreated brings a splendidus to privatethe Frick garden on the lose their view of a closed garden.experience, We too. 01-2,,0 " 19BH 45775AC  ! !   YP / These are the folks who react to each withthe itslostside ownwith views thebought other of and 8.3 demolished million New three adjacent both a zoning exception and landmarks 9`IVQRQWWQc8WGqG hhhPQW`UeeQI`X  + YP ! + Collection, the magnificent little art The Frick could build on its property 7QhE`cV7E change by asking, “What’s in it for character, enhance the quality Yorkersof life for andbuildings 55 million to expand tourists their who Fifth Avenue commission approval, is to replace the museum housedThe p Aublicin the former a privileged few without a zoning action, but the current 2+*0)340) ""!  4'B71C%159CD159      /" residents and keep tourism dollars institution and connect it to the Frick private garden with a public one on the me?” They bemoan any idearesidence that of Gilded Age industrialist would get a garden they can visit—andrules demand a tall, thin building that’s ATUcP$gQ hhhQUdYQcGXaQcI`X @G'B0@419 + + "+ of Scenic Hudson. Karen Washington is might inconvenience them. benefitsflowing offset into locals’ pockets. a vastly superiorArt Reference “house Library. museum” They couldn’t roof of a new addition. The neighbors’ 7QhE`cV7E Henry Clay Frick. hardly ideal for a museum. Of course, if state, federal and philanthropic Among the many things that make afford to do the project then, so they kvetching, boiled down, is that they will -5*06*278 "  "D1F19'H1B  !  "  " /!! mean nothing unless it reaches more Which brings us to the Frick experience, too. A longtimethe fixture lostthe cityofviews theinfuriating city’s of are its kvetchers. created a splendid privatethe Frick garde nhad on theproposedlose suchtheir aview tower, of a closed garden. We @UieT$gQ hhhI`TYcQqYUIVI`X  + +  + Collection, the magnificent littleMuseum art Mile, the Frick has seen its expansion siteThe in Frick the interim. could build on its propertyneighbors would have griped about that 7QhE`cV7E museum housed in the former These are the folks who withoutreact to a zoning action, but the current side with the other 8.3 million New attendance arise p nearlyrivileged 40% since few the Neighbors of the museum, suddenly as well. They want the garden, and )*, 5-)*,-* "" B'96EBB1      YP residence of Gilded Age industrialist change by asking, “What’s rulesin it demandfor Thea tall, thin public building that’s Yorkers and 55 million tourists who ATUcP$gQ hhhScGYeeT`cYe`YI`X + + YP mid-1990s but lacks me?”the space They to showbemoanblessed any withidea athat view of a garden rather everything else, to staywould the way get ait garden is. they can visit—and 7QhE`cV7E Henry Clay Frick. much of its collection of Old Master than the hardlysides idealof buildings, for a museum. came Ofto course,“It’s if a beautiful garden,” a museum might inconvenience them. benefits offset a vastly superior “house museum” )7.3 ! 122B1H%%1591B      /  A longtime fixture of the paintings,city’s European sculpture and treasure thethe greenFrick space,had proposed although such (or a officialtower, admits. “We built it.” ATUcP$gQ hhhXGcIfXWWaI`X  + "+ + Museum Mile, the Frick has seen its expansion site Whichin the interim. brings us to theneighbors Frick wouldthe have lost griped views about that of experience, too. 7QhE`cV7E decorative arts. Its concertCollection, series the and magnificentperhaps because)little art it was closed to the And now it’s ExhibitThe A inFrick a classic could build on its property attendance rise nearly 40% sincestudent the programsNeighbors cannot of the meetmuseum, the suddenlypublic. Youas canwell. tell They where want this isthe going: garden,lesson and of New York City land use: No 719)0:   &@9'70F%5A'B5   " !  /! museum housed in the former a privileged few without a zoning action, but the current !@UieT$gQ hhhXISWGPcQpI`X + + + mid-1990s but lacks the space todemand. show blessedPatrons with wait a inview lines of justa garden to Somerather neighborseverything now else, object to stay tothe theway itgood is. deed goes unpunished. 7QhE`cV7E much of its collection of Old Master than the sidesresidence of buildings, of Gilded came Age to industrialist“It’s a beautiful garden,” a museum rules demand a tall, thin building that’s  !!! B5'9))71CD@9      " " / paintings, European sculpture and treasure theHenry green Clayspace, Frick. although (or official admits. “We built it.” hardly ideal for a museum. Of course, if 8GcV$gQ hhhHP`I`X !'90H")4G'BDI8'9 + !+ "+ decorative arts. Its concert series and perhaps because)A longtimeit was closed fixture to theof the Andcity’s now it’s Exhibit A in a classic the Frick had proposed such a tower, 7QhE`cV7E Museum Mile, the Frick has seen its expansion site in the interim. neighbors would have griped about that -,5+,02* ++ ""  "D1F19'CC   !  " /" student programs cannot meet the public. YouReprinted can tellwith wherepermission this from is thegoing: Crain's Newlesson York Business of New. © 2015 York Crain City Communications land use: NoInc. All Rights reserved. @UieT$gQ hhhcVI`I`X #4@8'CF93177 + +  + demand. Patrons wait in lines just to Some neighborsattendanceFurther now duplication riseobject nearly withoutto 40%the permission sincegood is deedthe prohibited. goesNeighbors Visit unpunished. www.crainsnewyork.com. of the museum, #NB15004 suddenly as well. They want the garden, and 7QhE`cV7E" mid-1990s but lacks the space to show blessed with a view of a garden rather everything else, to stay the way it is. 02+0)6)+ !  &@E37'CF% 45775AC  "    / a Bronx-based urban farmer and much of its collection of Old Master than the sides of buildings, came to “It’s a beautiful garden,” a museum DeT@e hhhhQUdQcXGqGcdI`X + + + stakeholders to protect the nearby people. We also must develop infra- 7QhE`cV7E paintings, European sculpture and treasure the green space, although (or official admits. “We built it.” Reprinted with permission from the Crain's New York Business. © 2015 Crain Communications Inc. All Rights reserved. -**-) ;20+ ! 1F59%1'91   !   /!! decorative arts. Its concert series and perhaps because) it was closed to the And now it’s Exhibit A in a classic )UReT$gQ hhh`PaVRI`X + +  !+ Further duplication without permissionstudent is prohibited. programs Visit www.crainsnewyork.com. cannot meet #NB15004the public. You can tell where this is going: lesson of New York City land use: No 7QhE`cV7E demand. Patrons wait in lines just to Some neighbors now object to the good deed goes unpunished. 2,)2* --40)3* - "  @17F%@@A1B8'9  ! "   / ")UReT$gQ hhhIUecUYI``aQcXGYI`X + + + 7QhE`cV7E

Reprinted with permission from the Crain's New York Business. © 2015 Crain Communications Inc. All Rights reserved. farmland supplying its local food.In structure to facilitate the wholesale co-founder of Black Urban Growers. Further duplication without permission is prohibited. Visit www.crainsnewyork.com. #NB15004 Hard Copies Eprints (Digital Reprints) Plaques & Frames Logo Licensing

For more information contact Alicia Samuel, Reprint Account Executive Silver. It is even possible that the [email protected] • tel 212.210.0750 factions that have emerged in the Silver scandal could past week will remain intact and joust over legislative decisions. The current arrangement is just change Albany at last fine with the powers that be. Mr. Cuomo has already said he doesn’t negotiate with committees. Special n the early 1990s, it was exactly 52 weeks from the time interests—especially business groups Assembly Speaker Mel Miller of Brooklyn was indicted that use campaign contributions as the key lever of influence—will be- on fraud charges until he was convicted and stepped moan a new alignment that they will down from his post. call chaotic. Everyone will point to It took six days to force Sheldon Silver from the same the disaster that occurred when the powerful job, and this time no conviction was required. In some Democrats took control of the Senate I in 2010 under weak leadership and ways, that shows a little progress in Albany. Legislators seem to gridlocked state government. have decided that a speaker can’t be effective while charges of The rest of us should want some- thing better. U.S. Attorney Preet corruption hang over him. Bharara said it best recently when he It is even possible the Silver scan- drew a direct connection between dal will serve as a watershed in New the three men in a room and Al- York politics and government, fatally bany’s endemic corruption. undermining the “three men in a “You get swept up in the power room”governance in which all impor- and the trappings, because you were tant issues are decided behind closed never challenged, and because you doors by the Assembly speaker, Sen- can easily forget who put you there ate majority leader and governor. in the first place,” he said recently. Already, Senate Majority Leader “What kind of a system is that?” Dean Skelos is far weaker than his And he summed it up succinctly. predecessor Joe Bruno (even before “So, three men in a room: Is that news came that Mr. Skelos may be really how government should be under investigation). He has spent GREG DAVID run?”he asked.“Is that really the way the past two years relying on a group to run a state of almost 20 million of independent Democrats in a people? When did 20 million New power-sharing arrangement. Al- which,at minimum,broadens the po- Yorkers agree to be ruled like a tri- though Mr. Skelos recaptured a bare litical calculus in the state Senate. umvirate in Roman times? GOP majority last November, he In the near term, whoever wins “And so I ask again, what kind of continues to work in conjunction the maneuvering to become speaker a system is that?’’ with Bronx Democrat Jeff Klein, will have much less power than Mr. He’s right. 20150202-NEWS--0010-NAT-CCI-CN_-- 1/29/2015 6:26 PM Page 1

REAL ESTATE

out of Brooklyn and Manhattan. The company acquired a devel- BARE BONES Construction of the 90-unit build- opment site at 1525 Bedford Ave. in Silverstein pays ing at 16-14 and 16-26 Madison St. has Crown Heights, paying $32.5 mil- 106 READE ST. already begun and will run through lion.According to Omri Sachs,a co- ASKING RENT; the summer of 2016. founder of Adam America, the firm TERM: $130 The property will include a We- is planning to build an approximate- per square $100M+ for site Work-style business center de- ly 170-unit rental building totaling foot; 10 years signed for renters who work from 165,000 square feet. In order to take SQUARE FEET: ilverstein Properties has closed on its home (and who are largely associat- advantage of zoning bonuses that 1,500 purchase of 514 11th Ave., a former Mer- ed with trendy Brooklyn neighbor- will bring the residential component TENANT; REP: cedes-Benz dealership on the far West hoods like Williamsburg and Bush- up to about 144,000 square feet,20% Jacadi; Jason Side, where the development firm plans Turner of Zelnik wick), but Essex Capital founder of the project will be affordable & Co. to build an ultra-tall residential tower. Mitchell Rutter does not want to housing, Mr. Sachs said. The company,best known for building office sky- jump on the Queens-is-the-new- The firm is hoping to replicate LANDLORD; S REPS: Reade scrapers at the World Trade Center site,is paying Brooklyn bandwagon. the success it had with a 77-unit Street more than $100 million for the parcel, according “We view Ridgewood as having a apartment building it erected near- Associates; to sources familiar with the deal. separate identity and a separate de- by at 500 Sterling Place. The devel- James Silverstein Properties first entered into a con- sirability from whatever places like oper fully rented it,and recently sold Famularo and Ravi Idnani of tract for the site with the luxury automaker back Bushwick are offering,” said Mr. it for nearly $50 million. Eastern Consolidated in 2011.It is currently in the process of a land-use Rutter, a 1996 Crain’s 40 Under 40. “We weren’t even marketing that review with the city to try to change the commer- Though Ridgewood is undeni- property for sale, but we received an BACK STORY: The Paris-based,

architizer.com high-end childrenswear outfit has cial zoning on the property to allow for residen- ably undergoing gentrification, it offer that we couldn’t turn down,” picked TriBeCa for its fifth Manhattan tial development. The company released several renderings in recent years, has a more established working- Mr. Sachs said. outpost. revealing plans for one spire, or possibly two spires, at the site, which takes class residential and retail commu- Adam America plans to follow up the full block between West 40th and West 41st streets, between 11th nity than do the gritty former indus- that same formula at 1525 Bedford Avenue and a mid-block on-ramp to the Lincoln Tunnel. trial areas of Williamsburg and Ave., creating a property that will Google and one from Microsoft.” One plan that drew widespread attention envisions a pair of spires. A northern Bushwick. feature a package of amenities to at- A gas station and a car wash cur- source said Silverstein has shifted its focus to a single tower that could be —joe anuta tract the more affluent residents who rently sit on the site, which occupies more than 1,000 feet tall, accommodating 900 rental apartments. are streaming into the neighbor- a whole block-front on Bedford Av- —daniel geiger hood. All told, Mr. Sachs estimated, enue. B’klyn gas station to the project will cost more than $100 Bob Knakal, chairman of New pump rental bldg. million. York investment sales for Cushman week released renderings of its latest “At 500 Sterling,even in a chang- & Wakefield, handled the sale on Work begins on endeavor—the largest residential Adam America, a real estate invest- ing neighborhood, I was shocked at behalf of the seller, the Wiczyk fam- Ridgewood project project underway in Ridgewood, ment and development firm that has the tenant mix we received,” Mr. ily.Ofer Cohen,president of broker- Queens.The property,being built by several residential projects in Brook- Sachs said. “We had people who age TerraCRG, represented Adam A developer that has long focused on Essex Capital, will be tailored to lyn, has locked down its next deal worked at hedge funds, and doctors; America in the deal. emerging markets across the city last creative-class New Yorkers priced there. we had four engineers, three from —daniel geiger SMALL BUSINESS O’s exec order could spark business growth

Experts predict or expand. Without a timeline in the order, Immigrant-owned firms make though, there’s no telling how fast Obama’s immigration up about half of all Main Street busi- the changes will happen. nesses in New York City, according Opposition stems from the fact measure will help to a recent report by the Fiscal Poli- that the order gives a path to legal local firms expand cy Institute and the Americas Soci- status for illegal immigrants. The ety/Council of the Americas. Federation for American Immigra- The order gives a path to a legal tion Reform, a nonprofit based in BY ELIZABETH MACBRIDE status to an estimated 4 million un- Washington, D.C., is against it be- documented immigrants nation- cause it isn’t a wholesale approach to mall-business lending wide,mostly those with family here. rationalize the system, a spokesman platform Biz2Credit turns With less-noticed provisions, the for the group said. away hundreds of loan ap- order also makes it easier for highly One big impact of the executive PLAN B: Haseeb plications a year from en- skilled immigrants to open busi- order could come from its expansion Awan wanted to trepreneurs in New York nesses and for students already here of the previously hazy definition of a launch his startup in and other states who lack legal im- to become entrepreneurs. person of “national interest” who is New York but found it S easier to do in migration status, says President therefore eligible for an entrepre- Ramit Arora.Without it,they aren’t No timeline neurs’ visa. Under the order, that Canada. eligible for bank financing and assis- “A lot of people have to wait to could include people who have in- tance from the Small Business Ad- start their businesses,” said Mr. vestor funding or otherwise show the ministration. Arora.“They would contribute a lot promise of job creation, said David ficulty of getting extensions, he allowed to stay in the country post- That could change under Presi- to the U.S. economy.” He estimated Leopold, a past president of the founded the company in Ottawa. graduation and allows spouses of dent Barack Obama’s executive or- that 30% to 40% of borrowers served Washington, D.C.-based American He plans to eventually open a U.S. people who are here on employment der on immigration, depending on by his Manhat- Immigration Lawyers Association. office using an L-1 visa for interna- visas to work. how the measure is implemented tan-based com- Such measures could help entre- tional companies that have the po- The Department of Homeland and the effects of pushback by the pany—which 37% preneurs like Haseeb Awan. His tential to create jobs in this country. Security needs to issue the regula- PORTION OF new Republican Congress. facilitated $400 NYC’S startup, Big Access, is an ATM for tions to implement the executive or- As it stands, New York City po- million in loans POPULATION digital currency that employs nine ‘Culture of no’ der before it goes into effect. tentially could see a surge of hun- last year—are who are people. He planned to locate the “It’s not the ideal,” he said. “De- “Since 9/11, we’ve lived with a dreds or thousands of new small immigrant- immigrants company,founded in 2013 and fund- spite having a huge client base and culture of no,” said Mr. Leopold. businesses run by owners with legal owned firms. Source: Fiscal Policy ed in Silicon Valley, in New York. entire investment backing from the “What they’re trying to do here is Institute, Americas Ⅲ status, according to experts. Many The execu- Society/Council of the “We are a fintech company, and U.S., we are staying in Ontario due turn the battleship the other way.” entrepreneurial immigrants who are tive order faces a Americas NYC is the financial district,”he ex- to the favorable policies of the already operating businesses—from hailstorm of po- plained by email. Then the immi- Canadian system.” To sign up for Crain’s food carts to cleaning services to litical opposition, but the Depart- gration system sent him on a de- The order also extends to 17 SMALL BUSINESS newsletter, go to home-based tech startups—would ment of Homeland Security says it tour—to Canada.Aware of the long months the time that people who re- www.crainsnewyork.com/smallbiz. be able to formalize their companies is implementing the measure. wait for immigrant visas and the dif- cently received a STEM degree are

10 | Crain’s New York Business | February 2, 2015 20150202-NEWS--0011-NAT-CCI-CN_-- 1/29/2015 7:46 PM Page 1

HEALTH CARE INSIDE Kidney failure A 15-month fight to privatize dialysis services at public hospitals PAGE 12 The List New York area’s largest health care nonprofits PAGE 13 REPORT LISTEN to a discussion at CrainsNewYork.com/podcasts Funding pours in for tech startups But success means designing products the health industry actually needs

BY IRINA IVANOVA

Walk into the airy Chelsea head- quarters of nutrition app maker Noom and you’ll see the hall- marks of a hip tech startup. Just before noon, a staff chef puts the finishing touches on a family-style lunch for some 40 employees who dine together an hour a day in Noom’s sun- drenched kitchen. The app, which helps dieters track meals and lose weight,has been the top- grossing health item in the Google app store for two years. The firm has raised $21 million in venture funding so far. Now, eyeing expansion be- yond being a lifestyle app, Noom is pur- $21M suing clinical AMOUNT of venture money trials, multi- Noom has raised ple layers of so far regulations SIGNING UP: and beefed-up software security Boom!Health’s Robert Cordero to become something else:a com- joined several pany that meets the precise needs networks created by of health care providers and in- new Medicaid surers. reforms. Noom is working on pilot

buck ennis projects with Aetna and New York-Presbyterian Hospital in a bid to demonstrate that the premise of its dieting app also can be applied to large groups. The company hopes to capi- Nonprofits key to reform talize on the fact that its users’ in- terest in weight loss aligns with the interests of insurers and em- ment of an untapped resource in TRENDING UP York’s latest initiative—called the ployers in slowing Americans’ Community groups health care: community groups. Delivery System Reform Incentive weight-related complications, play new role Nonprofits have long specialized Total federal, state and local Program, or DSRIP—is that the cur- like diabetes. in health care issues such as poverty, Medicaid spending rent way of delivering health care to But consumer success doesn’t in state’s massive housing, and drug and alcohol addic- the poor is expensive and flawed. guarantee a product will do well tion. But those niche services were $62.0 Community groups may be the key to in a business sector populated by Medicaid overhaul overshadowed by the Goliaths of $58.8 a much better model. hospitals and insurers. With its health care in New York: institutions 5.6% In recent months, the nonprofits layers of regulations, regional BY JONATHAN LAMANTIA such as New York-Presbyterian Hos- Increase have found themselves wooed by hos- variations and reluctant con- pital, Mount Sinai Hospital, Monte- pitals that must partner with them. sumers—patients—the industry New York state is undertaking an am- fiore Medical Center and Mai- By increasing collaboration in pa- is one of the last to be upended by bitious overhaul of its Medicaid pro- monides Medical Center. tient care, DSRIP “aligns incentives digital technology. It also is par- gram,the most expensive in the coun- With implementation set for 2014-2015* 2015-2016 for community-based organizations ticularly hard for small compa- try. The reform isn’t noteworthy just April, the state’s newest Medicaid re- *New York state estimates that its and hospitals in a new way,” said nies to penetrate. A common Medicaid reforms are saving it and the for its size—$6.4 billion over five forms are changing that equation. federal government more than $17 billion Arthur Gianelli, president of Mount mistake by would-be entrepre- years—but for its unusual involve- One of the key assumptions of New each in 2014-2015. See MEDICAID on Page 15 See EMERGING on Page 15

February 2, 2015 | Crain’s New York Business | 11 20150202-NEWS--0012-NAT-CCI-CN_-- 1/29/2015 7:38 PM Page 1

REPORT HEALTH CARE

political candidate the union had authors noted that Big Apple oper- ever endorsed—be given time to re- ated 12 facilities to HHC’s four; it Health and Hospitals Corp.’s view the matter. also offered services to end-stage Around the same time, the deal renal-disease patients that were un- was the subject of a City Council available at HHC. dialysis plan scrutinized Health Committee hearing. HHC’s The report was authored by Dr. then-president,Alan Aviles,defend- Peter Hart, chairman of nephrology ed the public health system’s right to at Cook County (Ill.) Health and Big Apple Dialysis Management, a privatize dialysis services. But Ms. Hospitals System, and Dr. Kalyani Unions, public Queens company owned by Dr. James and NYSNA expressed con- Perumal, the system’s director of advocate raise Jodumutt Bhat and Dr. Nirmal cern that Big Apple had mortality dialysis. Dr. Ramanathan Raju ran Mattoo.For $1.1 million,Big Apple rates as much as 24% higher than Cook County’s public hospital sys- objections over proposed buying four chronic renal HHC’s. Mr. Aviles countered that tem before he became president and quality of care dialysis programs at HHC’s the rates were not comparable be- chief executive of HHC last March. Harlem,Kings,Lincoln and Metro- cause many Big Apple patients were The review found that HHC politan hospitals. nursing-home residents who had performed better than Big Apple in BY JONATHAN LAMANTIA shorter life expectancies than the a category related to vascular access, Politically charged general dialysis population. while the opposite was true in a Nonprofits dominate New York’s Transferring the operations from Mr. Aviles also emphasized that measure of mineral and bone disor-

health care industry, but publicly nonprofit to for-profit hands would ap image HHC’s own nephrologists would ders. Both facilities performed well traded hospital chains are banned. save the public health system about oversee the program.And if Big Ap- in dialysis adequacy, compared with Likewise, for-profit companies pro- $150 million over nine years. ‘[Big Apple] puts ple failed to perform at least as well state and national averages. vide most dialysis services nationally, But privatization is a politically as HHC, its contract could be ter- NYSNA’s criticisms of Big Ap- but in New York, they are shunned. charged issue. At a public health products ahead minated quickly, he added. He told ple focused on how often patients For proof, look no further than hearing last week, the dialysis pro- the City Council that the deal would died after treatment at a clinic com- the city public hospital system’s 15- posal was opposed by the New York of patients,’ said save HHC millions of dollars at a pared with other similar facilities. month battle to sell four dialysis State Nurses Association, a union time when its budget looked grim, And although the review found 42% centers to a for-profit company.The for registered nurses; Doctors Letitia James with a projected operating deficit of of Big Apple’s facilities experienced deal must be approved by the Public Council SEIU, which represents $1.3 billion in fiscal 2018. “worse than expected” standardized Health and Health Planning Coun- HHC physicians;and Public Advo- mortality ratios,the authors said the cil, a health care regulatory body. It cate Letitia James. Speaking at the Similar quality of care statistic was not necessarily an indi- is set to vote Feb. 12. hearing, Ms. James said, “We know Ms. James’ and NYSNA’s oppo- cator of substandard quality. The New York City Health and for a fact this company underper- Council a year ago.At a public hear- sition effectively tabled the issue un- “In the absence of patients’ med- Hospitals Corp. wants to privatize forms. They put products ahead of ing at the time, NYSNA opposed til an independent review, commis- ical history, acuity of illness, reason its dialysis operations to help stem a patients.” the deal,even though no RNs would sioned by HHC and released last for admission, readmissions or $103 million operating loss it suf- Big Apple’s application first have lost their jobs. The nurses’ October, showed that the quality of death, it is difficult to derive any fered last year. came up for approval before the union asked that then-newly elect- care at Big Apple and HHC were valid conclusions from this data,” In 2013,HHC struck a deal with Public Health and Health Planning ed Mayor Bill de Blasio—the first “on the aggregate the same.” The Drs. Hart and Perumal wrote. Ⅲ

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12 | Crain’s New York Business | February 2, 2015 20150202-NEWS--0013-NAT-CCI-CN_-- 1/29/2015 7:40 PM Page 1

NEXT WEEK: THE Largest Health Care Nonprofits The 25 largest executive recruiting firms in the LIST Ranked by 2013 total operating expenses New York area SPOTLIGHT TRENDS IT PAYS TO BE HEALTHY HEALTH GROUPS SHIFT FOCUS Highest-paid executives at top health nonprofits ANNUAL CRAIN’S 2015 LIST of the largest health care nonprofit organizations CHIEF EXECUTIVE TITLE COMPENSATION* in the New York area shows a shifting focus from inpatient hospi- Long Island Home Robert Detor Jr. President, chief executive $3,236,288 talization to home care and community-based programs.The three largest organizations on Crain’s list, ranked by 2013 operating ex- CenterLight Health System Inc. Michael Fassler President, chief executive $1,432,648 penses, offer these outpatient programs as part of their services. New York Blood Center Inc. Christopher Hillyer, M.D. President, chief executive $1,272,449 CenterLight Health System Inc. (No. 3) saw its operating expenses Ludwig Institute for Cancer Research Edward McDermott Jr. President, director $1,064,196 jump $217.6 million from 2012 to 2013, an increase of 45%. The organization expanded its home care services by launching a short- Visiting Nurse Service of New York Mary Ann Christopher Chief executive $1,023,454 term care agency at the end of 2013. As part of the state’s $6.4 bil- *Most recent figures available. Includes base compensation, bonus and incentive compensation, and other reportable compensation from the organization and related organizations. lion Medicaid redesign, state funds are being directed away from a Sources: Organizations’ tax forms, Crain’s research fee-for-service model to managed care. CenterLight gets about 99% of its revenue from Medicare and Medicaid. “Greater access to these services keeps our patients safe at home HOME WORK HEALTHY GIVING in their communities,”said Florence Marc-Charles,vice president of home care services, in a statement. CenterLight increased its budget Employment for home health aides in NYC is projected to increase Top five grant-making areas to recipients in New York state for home health aides by 24%, to $24.4 million, from 2012 to 2013. the most through 2020, compared with other health professions. in 2012 Employment for home health aides is one of the fastest-grow- Home health aides Net change % change Total grant value ing sectors in the city.The number of jobs in the field is expected to $687.0 (in millions) 37,000 +47.7% $676.8 increase by 47% from 2010 to 2020, to more than 114,000, accord- ing to the state Department of Labor. In New York City, home Registered nurses health aides earn a median annual income of $19,520, according to 9,400 +13.8% the state, less than half the $46,540 median overall. $425.4 $399.5 $394.4 Meanwhile, Visiting Nurse Service of New York (No. 2), the country’s Nursing aides, orderlies and attendants largest nonprofit home care agency, has been shedding workers 4,250 +10.3% since a corporate restructuring in October.The organization,which Physicians and surgeons had operating expenses of $804.4 million in 2012, the most recent year available, has eliminated 1,345 workers, or about 7% of those 2,700 +10.5% employed by the organization and its affiliates. Pharmacists In November 2014, VNSNY agreed to pay $35 million to settle 2,050 +26.3% Health Education Arts and Human Public affairs/ civil fraud claims made against the organization in connection with culture services society benefit improperly billed Medicaid payments. —nicholas wells Source: NYS Department of Labor Source: Foundation Center

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February 2, 2015 | Crain’s New York Business | 13 20150202-NEWS--0014-NAT-CCI-CN_-- 1/29/2015 7:41 PM Page 1

THE LIST NY Area’s Largest Health Care Nonprofits

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+8.
"3-296+=
)/66= Spectacular Sublease Available 2500 Halsey Street | Bronx, New York 10461

AVAILABILITY Entire 1st floor: 74,060 RSF Asking rent: upon request Possession: arranged Term: thru September 1, 2019 TI: As-is Basis Landlord: Commerce – Halsey LLC FEATURES All furniture to be included Ample off street parking Close proximity to public transportation Westchester Square amenities

FIRST FLOOR—74,060 RSF For additional information, contact: Mark Jaccom | 212.758.3131 | [email protected] Possibility of combining with landlord’s 45,000 SF Stephen Santoro | 212.687.4240 | [email protected] for a total of 119,060 SF Sam Mann | 212.687.4365 | [email protected]

14 | Crain’s New York Business | February 2, 2015 20150202-NEWS--0015-NAT-CCI-CN_-- 1/29/2015 7:47 PM Page 1

REPORT HEALTH CARE

health needs. It also had a voice in resources they would have never some of the network’s committees. gotten,” he said. Medicaid and nonprofits Still, Mr. Cordero said he wor- But, he cautioned, “demands on ries community groups won’t have a them are such that they have to leap large enough role in how the new into the future pretty quickly.” Continued from Page 11 played a major part in keeping trying to move away from.” networks are governed, including Nonprofits could struggle to Sinai St. Luke’s Hospital, which is Medicaid recipients healthy—and Among the community groups having a place on steering commit- keep up in several ways. They must participating in the new program. yet about one-quarter don’t have capitalizing on that shift is tees that control how billions of dol- make significant investments in But community groups could ties to a primary care doctor. But Boom!Health. A Bronx nonprofit lars statewide will be allocated to the technology to comply with the face new risks when they cast their those same New Yorkers may regu- with a $12.5 million budget, the nonprofits. state’s requirement that network fate with powerful hospital sys- larly see a pastor or show up for a group joined four of the new PPS “You’ve got to be at the table,” he members share patient data. Not all tems. They must make hefty in- methadone dose at a clinic. The networks, including one led by said.“You can give input, but what’s nonprofits have that cash to spend, vestments in technology,for exam- concept of community-based care Bronx-Lebanon Hospital.The net- more important is to be part of the Ms. Colonna said. ple, without knowing yet whether brings treatment to the patient, in- works look to Boom!Health for its decision-making process. You can Some of the program’s funding is supporting DSRIP will benefit expertise in HIV case management, only influence so far when this kind slated for building new health care them financially. a key aspect of HIV care. of money is involved.” facilities in underserved areas. Lar- Even so, hundreds of communi- ‘What we Boom!Health, the product of an ry McReynolds, chairman of the ty groups have signed up to join a August 2013 merger of CitiWide Unprecedented collaboration Community Healthcare Associa- new kind of health care network don’t need Harm Reduction and Bronx AIDS Donna Colonna,chief executive tion of New York State,said he fears created by the state,called Perform- Services, also provides an array of of Services for the UnderServed hospitals will steer the process so ing Provider Systems, or PPSs. is old-time services for the homeless, as well as and board chair of Coordinated that their own projects take prece- Mostly hospital-led, the 25 new chronic drug users and the LGBT Behavioral Care, a group of about dence over those of community PPS networks in the state will rely doctors’ visits’ community.Seamless integration of 50 behavioral health nonprofits, groups. on nonprofit groups to aid 5.8 mil- such services with primary care said CBC’s members have been in- The state announces how much lion Medicaid recipients in their boosts opportunities for cluded in planning and decision- each PPS network will receive in own neighborhoods. Boom!Health’s clientele to have making. early March. Until then, the non- “They know the people we do their medical needs addressed, too. “We’re feeling very hopeful, profits won’t know whether they not see; they are better at doing this stead of forcing the patient to con- A few years ago, the nonprofit based on the PPSs we’ve been in- will receive a windfall from than us,” said Dr. Christina Jenk- form to the current way of doing moved into a space with a South volved in, that the behavioral health DSRIP,said Fern Zagor, president ins, head of the DSRIP program at things. Bronx community health center run community will have a real role to and chief executive of the Staten the New York City Health and “What we don’t need is old- by provider HELP/PSI. play,” she said. Island Mental Health Society. Hospitals Corp., whose PPS net- time doctors’visits,”said Dr.Karen “We were spending over 50% of The new state-supported col- And so some community groups work includes some 40 community Nelson, senior vice president for our time navigating our clients laboration between hospitals and remain skeptical that their much- groups. integrated delivery systems at through the health care system,” community groups, said Arthur sought participation in the Medic- Maimonides, which heads one of but adding on-site primary care Webb, a health care consultant at aid reforms will reward them fi- Model shift the new Medicaid networks in and pharmacy services greatly re- the ArthurWebbGroup, is un- nancially. This new model is based on the Brooklyn. “You can check blood duced that burden, said Robert precedented in his 40 years in the “In the end, I think the lion’s concept that housing, poverty and pressure in churches. You have to Cordero,Boom!Health’s chief pro- field, which included a stint as New share of the dollars isn’t going to go behavioral health have an oversize change behavior. Some of what gram officer. York’s commissioner of the Depart- to community-based providers,” role in landing low-income New people need is housing and behav- The nonprofit participated ex- ment of Social Services. DSRIP said Mr. Cordero. “It will go to the Yorkers in the emergency room. ioral health. The typical primary tensively in Bronx-Lebanon’s cru- gives community-based organiza- hospital systems,and I think they do Primary care traditionally has care office visit is what we are all cial assessment of the borough’s tions “the opportunity to get some that at their own peril.” Ⅲ

for a hospital; the company charges Emerging health tech sector is cashing in $50,000 to $200,000. Noom went through the city’s Digital Health Accelerator late last year after it already had a successful Continued from Page 11 ON THE MONEY “All of that non-sexy back-office sures patients take their medication consumer product.Its goal:hooking neurs is to dream up a product for stuff is where organizations are find- properly, and for[MD], a social and up with some of the city’s many which there isn’t a market. recruiting network for doctors. Year-over-year change, 2013 ing the most immediate returns in health institutions. It is now work- “Just because you have a good to 2014 terms of cost savings and cost reduc- Cureatr and BoardRounds both ing on pilot projects with New idea doesn’t mean you’ll have a sus- tion,”said Rock Health’s Ms.Wang. benefit from being run by physi- York-Presbyterian and Aetna. tainable business,” said Teresa Venture funding in Many fitness-tracker startups cians, which means they have an Wang, strategy manager at Rock digital health startups +228.0% have raised $1 million or $2 million edge in knowing that market seg- Cautionary tale Health, a firm that funds digital S&P 500 +13.7% apiece, she said, but few are surviv- ment. But for the estimated 30% to Noom attracted $21 million in health companies. “People think, Digital health ing. She is still looking for startups 40% of health startup founders who two venture rounds,but its rapid rise ‘Health care is 18% of GDP; we public-company index -5.4% that do “really fantastic work in care don’t have a health care background, is also a cautionary tale: a company waste $700 million on administra- coordination”—when a patient’s accelerators such as Startup Health, can find a successful niche in the tive inefficiencies.’ But do you actu- Blueprint Health and Pilot Health health care sector but still be a rook- Growth in venture funding, care team communicates with one ally understand the process and the 2013 to 2014 another. Another area is clinical Tech NYC aim to give them a crash ie as a startup. workflow that leads to these costs? workflow—essentially, making a course on the industry while con- Mr.Petakov announced at a Dig- Do you really understand what peo- Digital health doctor’s or hospital’s job easier. In necting them to potential clients ital Health Accelerator presentation ple [in health care] don’t enjoy as a +127% these areas, a startup needs large in- and investors. in December that Noom had raised part of their job?” stitutions—hospitals, insurers or BoardRounds’ product tracks $16 million of a $15 million to $20 Last year, health tech investors Software employers—as clients. patients as they are discharged million funding round. Nearly a pumped between $4.25 billion and +77% from the emergency department, month later, Noom filed an S-1 $6.5 billion into digital health start- ‘Pure profit’ and schedules a follow-up ap- form with the Securities and Ex- ups, $722 million of that in New Biotech “If payers and providers aren’t pointment with a specialist. Pa- change Commission, divulging it York City.It’s uncertain if that mon- +29% buying into a product, it’s very hard tients are frequently told to see had raised $15.1 million. ey was well spent. for a startup company to make it,” their doctor after a hospital stay, In speaking publicly about the “Most health care technology Medical devices said Ms. Wang. “They have deep but fewer than 20% do—a gap on funding before the SEC filing, funds underperform the market, +21% pockets and are willing to spend to which BoardRounds built its busi- Noom may have committed a viola- with single-digit or negative reduce operating costs,because any- ness model. tion, said one securities lawyer. growth,” said Harsha Murthy, a All funding thing they save is pure profit.” The appointment and transport Noom’s CEO said in late January managing partner at Consummate +61% Several local health tech compa- service is convenient for patients, that he was legally unable to com- Capital. His advice to digital health nies sell to that sector.They include but makes money because it plays ment. hopefuls: Do more research, and do Source: Rock Health Cureatr, whose secure messaging into hospitals’ incentives. If too The possible error illustrates the underestimate customers’ readiness tool is meant to improve communi- many patients return to a hospital challenges inexperienced founders to accept new technology. patient-centered startups, such as cations and care coordination; within 30 days of discharge because face no matter how well a company Noom users join a support group fitness trackers, that attract a lot of CipherHealth, whose technology of complications that could have penetrates the health care sector. of similar-minded people to track attention because their concept is helps providers manage their pa- been avoided, the institution will “Investors are drawn to founders their eating and check in regularly easy to understand. But the biggest tients’ care; Vital Care Services, a face financial penalties. who are visionaries,” said Jeremy with a trained coach, each of whom revenue potential lies in health care’s telehealth company; BoardRounds, Dr. Benjamin Jack, one of Sohn, an adviser at MPM Capital. can manage about 200 patients,said back end: helping providers and which tracks patients after they are BoardRounds’ two founders, said “But founders need to surround Chief Executive Artem Petakov. health insurers work more efficient- discharged from a hospital; the company can generate $1 mil- themselves with those people who Noom’s product is in the niche of ly or save money. AdhereTech, whose product en- lion to $2 million in annual revenue are experienced.” Ⅲ

February 2, 2015 | Crain’s New York Business | 15 P016-17CL_CN_20150202.qxp 1/30/2015 12:21 PM Page 16

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR EMAIL [email protected] FINANCIAL OPPORTUNITIES PUBLIC & LEGAL NOTICES IN MORTGAGE NOTES Qualification of Blackstone Real Estate Notice of Qualification of PROTEAN NOTICE OF FORMATION OF LIMITED Notice of Qualification of HAVAS Associates VIII L.P. Authority filed COMPANY, LLC. Appl. for Auth. filed LIABILITY COMPANY. 14 LEROY PEOPLE, LLC. Appl. for Auth. filed • Mortgages For Sale with the Sect of State of NY (SSNY) with Secy. of State of NY (SSNY) on STREET DARLING LLC Articles of with Secy. of State of NY (SSNY) on on 10/28/14. Office Loc: NY County. 12/24/14. Office location: NY County. Organization were filed with the 11/19/14. Office location: NY County. • Ranging from $149K - $800K LP formed in DE on 10/22/14. SSNY LLC formed in Delaware (DE) on Secretary of State of New York (SSNY) LLC formed in Delaware (DE) on • Low Loan to Value has been designated as agent of LP 12/11/12. SSNY designated as agent 1/14/15. Office location: NY County. 11/14/83. Princ. office of LLC: 200 upon whom process against it may of LLC upon whom process against it SSNY has been designated as agent Hudson St., NY, NY 10013. SSNY • Accruing Default Interest @ 24% be served and shall mail process to: may be served. SSNY shall mail process of the LLC upon whom process designated as agent of LLC upon c/o The Blackstone Group L.P., 345 to c/o Corporation Service Co., 80 against it may be served and shall whom process against it may be Call: J. Hughis @ 888-377-3872 Park Avenue, NY, NY 10154. DE State St., Albany, NY 12207-2543. mail a copy of process to 14 LEROY served. SSNY shall mail process to address of LP: 200 Bellevue Pkwy, Ste DE addr. of LLC: c/o CSC, 2711 STREET DARLING LLC, 708 Third the LLC at the princ. office of the LLC. 210, Wilmington, 19809. Name/addr Centerville Rd., Ste. 400, Wilmington, Avenue, 20th fl., New York, New DE addr. of LLC: 2711 Centerville TELECOMMUNICATIONS of genl ptr avail from SSNY. Cert of DE 19808. Cert. of Form. filed with DE York, 10017, attention Rubin Ferziger. Rd., Ste. 400, Wilmington, DE 19808. LP filed with DE Sect of State, 401 Secy. of State, 401 Federal St., Dover, Purpose: for any lawful purpose. Cert. of Form. filed with DE Secy. of Federal St, Ste 4, Dover, DE 19901. DE 19901. Purpose: Any lawful activity. State, Townsend Bldg.,Ste. 3, 401 Purpose: any lawful activity. Notice of Formation of Francmen Federal St., Dover, DE 19901. Purpose: Notice of Formation of BFV Jamaica Ventures LLC. Arts. of Org. General marketing, advertising, & Management LLC. Arts. of Org. filed filed with Secy. of State of NY (SSNY) 33 East 33rd Street Qualification of Blackstone Real Estate public relations services. with NY Dept. of State on 11/17/14. on 1/13/15. Office location: NY Partners VIII.F L.P. Authority filed with New York, NY 10016 Office location: NY County. Sec. of County. SSNY designated as agent 35 PERRY ST. OWNERS LLC. Art. of the Sect of State of NY (SSNY) on 212-532-7400 State designated agent of LLC upon of LLC upon whom process against Org. filed with the SSNY on 12/02/14. 11/20/14. Office Loc: NY County. LP [email protected] whom process against it may be it may be served. SSNY shall mail Office: New York County. SSNY desig- formed in DE on 11/12/14. SSNY has served and shall mail process to the process to: c/o The LLC, 1412 nated as agent of the LLC upon whom been designated as agent of LP upon EMERGENCY principal business address: 254 W. 54th Broadway, 3rd Fl., NY, NY 10018. process against it may be served. SSNY whom process against it may be COMMUNICATIONS St., 10th Fl., NY, NY 10019, Attn: Tom Purpose: any lawful activity. shall mail copy of process to the LLC, served and shall mail process to: c/o Viertel. Purpose: any lawful activity. c/o Karasyk & Moschella, LLP, 233 SYSTEMS The Blackstone Group L.P., 345 Park Notice of Formation of MANGO SPECIALISTS Broadway, Suite 2340, New York, NY Avenue, NY, NY 10154. DE address Notice of formation of Assure Global TANGO LLC. Arts. of Org. filed with 10279. Purpose: Any lawful purpose. • FREE PICKUP & DELIVERY of LP: 200 Bellevue Pkwy, Ste 210, LLC. Arts of Org filed with Secy of Secy. of State of NY (SSNY) on • 48 HOUR TURNAROUND Wilmington, 19809. Name/addr of State of NY (SSNY) on 12/11/14. 01/12/15. Office location: NY County. Sun Arthur LLC. Arts. of Org. filed ON REPAIRS genl ptr avail from SSNY. Cert of LP Office location:NY Co. SSNY desig- Princ. office of LLC: c/o Rosenberg & with Secy. of State of NY (SSNY) on • FREE ENGRAVING filed with DE Sect of State, 401 nated agent upon whom process may Estis, P.C., 733 Third Ave., NY, NY 12/09/14. Off. loc.: NY Co. SSNY Federal St, Ste 4, Dover, DE 19901. be served & shall mail copy of process 10017. SSNY designated as agent of designated as agent of LLC upon • SHORT & LONG TERM whom process may be served. SSNY RENTALS Purpose: any lawful activity. against LLC to principal business LLC upon whom process against it may address:150 W28 St, Ste 403, NY NY be served. SSNY shall mail process shall mail process to 52 Vanderbilt Qualification of Blackstone Real Estate 10001. Purpose:any lawful act. to the LLC at the addr. of its princ. Ave., Ste. 403, New York, NY 10017. Partners VIII.TE.2 L.P. Authority filed office. Purpose: Any lawful activity. Purpose: General. Notice of Qualification of Budget with the Sect of State of NY (SSNY) Travel, LLC. Authority filed with NY NOTICE OF FORMATION OF Dave SAN BLAS LLC. Art. of Org. filed on 11/19/14. Office Loc: NY County. Dept. of State on 10/7/14. Office Friedman 1, LLC. Articles of with the SSNY on 10/23/14. Office: LP formed in DE on 11/12/14. SSNY location: NY County. Princ. bus. Organization filed with the Secretary New York County. SSNY designated has been designated as agent of LP addr.: 499 7th Ave., 18th Fl., South of State of NY (SSNY) on 10/24/2012. as agent of the LLC upon whom upon whom process against it may Tower, NY, NY 10018. LLC formed in Office location: NEW YORK County. process against it may be served. be served and shall mail process to: PUBLIC & DE on 2/25/14. NY Sec. of State SSNY has been designated as agent SSNY shall mail copy of process to c/o The Blackstone Group L.P., 345 designated agent of LLC upon whom upon whom process against it may the LLC, 79 Washington Place, Suite Park Avenue, NY, NY 10154. DE LEGAL NOTICES process against it may be served be served. The Post Office address #1C, New York, NY 10011. Purpose: address of LP: 200 Bellevue Pkwy, Ste and shall mail process to: PO Box to which the SSNY shall mail a copy Any lawful purpose. Notice of Formation: Greenpoint 210, Wilmington, 19809. Name/addr 680999, Franklin, TN 37068-0999. of any process against the LLC Pencil Works LLC, files with SECY of of genl ptr avail from SSNY. Cert of Notice of Qualification of Bedrock DE addr. of LLC: 1209 Orange St., served upon him/her is: c/o Max State of NY on 11/19/14. Off. Loc.: LP filed with DE Sect of State, 401 Manufacturing Company, LLC. Wilmington, DE 19801. Cert. of Form. Markus Katz, P.C., 88 University NY County. SSNY designated as Federal St, Ste 4, Dover, DE 19901. Authority filed with NY Dept. of State filed with DE Sec. of State, 401 Place, New York, NY 10003. The agent of LLC upon process may be Purpose: any lawful activity. on 1/12/15. Office location: NY Federal St., Dover, DE 19901. principal business address of the LLC served. SSNY shall mail process to: County. LLC formed in TX on 5/30/14. Purpose: all lawful purposes. is: c/o Max Markus Katz, P.C., 88 160 6th Ave., #3, NY, NY 10013. Notice of Formation of FoxHog University Place, New York, NY 10003. NY Sec. of State designated agent of Purpose: Any Lawful Activity. PRODUCTIONS LLC. Arts. of Org. Notice of formation of Tres Carnes Purpose: any lawful act or activity. LLC upon whom process against it filed with Secy. of State of NY (SSNY) 391 8th Avenue LLC. Arts of Org filed may be served and shall mail process Notice of Formation of LEGUCA LLC. on 12/17/14. Office location: NY with Secy of State of NY (SSNY) on Notice of Formation of COJI, LLC. to: c/o CT Corporation System, 111 Arts. of Org. filed with Secy. of State County. Princ. office of LLC: Sandra 11/20/14. Office location: NY Co. SSNY Arts. of Org. filed with Secy. of State 8th Ave., NY, NY 10011, regd. agent of NY (SSNY) on 12/26/14, becoming Gotham Meehan, 220 E. 73rd St., Ste. designated agent upon whom process of NY (SSNY) on 12/08/14. Office upon whom process may be served. effective on 01/02/15. Office location: 5C, NY, NY 10021. SSNY designated may be served & shall mail copy of location: NY County. SSNY designated TX and principal business address: NY County. SSNY designated as as agent of LLC upon whom process process against LLC to principal as agent of LLC upon whom process 1039 E. 15th St., Plano, TX 75074. agent of LLC upon whom process against it may be served. SSNY business address: 150 W28 St, Ste 403, against it may be served. SSNY shall Cert. of Org. filed with TX Sec. of against it may be served. SSNY shall shall mail process to the LLC at the NY NY 10001. Purpose:any lawful act. mail process to Corporation Service State, 1019 Brazos, Austin, TX mail process to c/o Zach Feuer, 548 Co., 80 State St., Albany, NY 12207, 78701. Purpose: all lawful purposes. addr. of its princ. office. Purpose: Notice of formation of Assure Funding W. 22nd St., NY, NY 10011. Purpose: Any lawful activity. regd. agent upon whom and at which Any lawful activity. LLC. Arts of Org filed with Secy of process may be served. Purpose: Notice of Formation of GOV BALL State of NY (SSNY) on 12/11/14. Office Any lawful activity. 2015, LLC. Arts. of Org. filed with NY Notice of Qualification of KGS-ALPHA Qualification of Blackstone Real Estate location: NY Co. SSNY designated Dept. of State on 11/17/14. Office FINANCIAL SERVICES, LLC. Appl. for Partners VIII.TE.1 L.P. Authority filed agent upon whom process may be Notice of formation of 817 Second location: NY County. Sec. of State Auth. filed with Secy. of State of NY with the Sect of State of NY (SSNY) served & shall mail copy of process Avenue TC LLC. Arts of Org filed with designated agent of LLC upon whom (SSNY) on 11/10/14. Office location: on 11/20/14. Office Loc: NY County. against LLC to principal business Secy of State of NY (SSNY) on 8/12/14. process against it may be served and NY County. LLC formed in Delaware LP formed in DE on 11/12/14. SSNY address:150 W28 St, Ste 403, NY NY Office location: NY Co. SSNY desig- shall mail process to the principal (DE) on 10/17/14. SSNY designated has been designated as agent of LP 10001. Purpose:any lawful act. nated agent upon whom process may business address: 45 E. 9th St., Ste. as agent of LLC upon whom process upon whom process against it may be served & shall mail copy of process 46, NY, NY 10003, Attn: Thomas NOTICE OF FORMATION OF SHINE against it may be served. SSNY shall be served and shall mail process to: against LLC to principal business Russell. Purpose: any lawful activity. GLORY LLC. Arts of Org filed with mail process to c/o Corporation c/o The Blackstone Group L.P., 345 address:150 W28 St, Ste 403, NY NY Secy of State of NY (SSNY) on Notice of Formation of HILL HOUSE Service Co., 80 State St., Albany, NY Park Avenue, NY, NY 10154. DE 10001. Purpose:any lawful act. 11/19/14. Office location: NEW YORK NY LLC. Arts. of Org. filed with Secy. 12207-2543. DE addr. of LLC: 2711 address of LP: 200 Bellevue Pkwy, County. SSNY designated agent upon Notice of Formation of DT 153 of State of NY (SSNY) on 12/17/14. Centerville Rd., Ste. 400, Wilmington, Ste 210, Wilmington, 19809. Name/ whom process may be served and Bruckner LLC. Art/Org. filed with SSNY Office location: NY County. SSNY DE 19808. Cert. of Form. filed with addr of genl ptr avail from SSNY. Cert shall mail copy of process against 10/3/13. NY office location: NY designated as agent of LLC upon Jeffrey W. Bullock, Secy. of State, of LP filed with DE Sect of State, 401 LLC to principal business address: County. SSNY designated as agent whom process against it may be 401 Federal St., Dover, DE 19901. Federal St, Ste 4, Dover, DE 19901. 8514 Broadway, Apt.5A, Elmhurst, for process. SSNY shall mail copy of served. SSNY shall mail process to Purpose: Any lawful activity. Purpose: any lawful activity. NY 11373. Purpose: any lawful act. process to: c/o Princeton Holdings c/o Paul Wrobleski, Clarfeld, 560 LLC, 375 Park Ave., Ste 1604, NY, White Plains Rd., Tarrytown, NY Qualification of Blackstone Tactical Notice of Qualification of APOLLO NA NOTICE FOR FORMATION of a limited NY 10152. Any lawful act or activity. 10591. Purpose: Any lawful activity. Opportunities Fund (KG Co-Invest) L.P. MANAGEMENT II, LLC. Authority filed liability company (LLC). The name of Authority filed with the Sect of State with Secy. of State of NY (SSNY) on the limited liability company is 53 EAST Notice of Qualification of TribeTats Notice of Qualification of HAVAS of NY (SSNY) on 1/20/15. Office Loc: 12/17/14. Office location: NY County. 7 STREET LLC. The date of filing of LLC. Appl. for Auth. filed with Secy. WORLDWIDE, LLC. Appl. for Auth. NY County. LP formed in Cayman LLC formed in Delaware (DE) on the articles of organization with the of State of NY (SSNY) on 10/30/14. filed with Secy. of State of NY (SSNY) Islands on 12/2/14. SSNY has been 08/15/14. Princ. office of LLC: 9 W. Department of State was November 18, Office location: NY County. LLC on 03/20/14. Office location: NY designated as agent of LP upon 57th St., 43rd Fl., NY, NY 10019. SSNY 2014. The County in New York in formed in Delaware (DE) on 10/20/14. County. LLC formed in Delaware (DE) whom process against it may be designated as agent of LLC upon which the office of the company is Princ. office of LLC: 79 Madison Ave., on 09/20/07. Princ. office of LLC: served and shall mail process to: 200 whom process against it may be located is New York. The Secretary of Fl. 3, NY, NY 10016. SSNY designated 200 Hudson St., NY, NY 10013. SSNY Bellevue Pkwy, Ste 210, Wilmington, served. SSNY shall mail process to State has been designated as agent of as agent of LLC upon whom process designated as agent of LLC upon 19809. Cayman Islands address of the LLC, Attn: John J. Suydam at the the company upon whom process against it may be served. SSNY shall whom process against it may be LP: 190 Elgin Avenue, George Town, princ. office of the LLC. DE addr. of may be served, and the Secretary of mail process to c/o Corporation served. SSNY shall mail process to Grand Cayman, KY1-9005, Cayman LLC: c/o Corporation Service Co., State shall mail a copy of any process Service Co. (CSC), 80 State St., the LLC at the princ. office of the LLC. Islands. Name/addr of genl ptr avail 2711 Centerville Rd., Ste. 400, against the company served upon him Albany, NY 12207-2543. DE addr. of DE addr. of LLC: 2711 Centerville from SSNY. Cert of LP filed with Wilmington, DE 19808. Arts. of Org. or her to c/o Stefka Nazarkewycz, 182 LLC: c/o CSC, 2711 Centerville Rd., Rd., Ste. 400, Wilmington, DE 19809. Registrar of Exempted Limited filed with the Secy. of State of the 2nd Avenue, Apt #2, New York, New Ste. 400 Wilmington, DE 19808. Cert. Cert. of Form. filed with DE Secy. of Partnerships of the Cayman Islands, State of DE, Dept. of State, Div. of York 10003. The business purpose of of Form. filed with Secy. of State, State, Townsend Bldg., 401 Federal 133 Elgin Ave, George Town, Grand Corps., John G. Townsend Bldg., the company is to engage in any and John G. Townsend Bldg., 401 St., Ste. 3, Dover, DE 19901. Purpose: Cayman, KY1-9000, Cayman Islands. 401 Federal St., Ste. 4, Dover, DE all business activities permitted under Federal St.-Ste. 4, Dover, DE 19901. General marketing, advertising, & Purpose: any lawful activity. 19901. Purpose: Any lawful activity. the laws of the State of New York. Purpose: Any lawful activity. public relations services.

16 | Crain’s New York Business | February 2, 2015 P016-17CL_CN_20150202.qxp 1/30/2015 1:25 PM Page 17

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR EMAIL [email protected] PUBLIC & LEGAL NOTICES Notice of Qualification of Carlyle Asia Notice of Formation of JUJA Notice of Formation of TYCHE, LLC. Notice of Qualification of BGP DIMES BIG TIME LLC, a domestic Structured Credit Opportunities SOUTHAMPTON LLC. Arts. of Org. Arts. of Org. filed with Secy. of State Tuscany HoldCo LLC. Authority filed LLC, filed with the SSNY on Fund-A, L.P. Authority filed with NY filed with Secy. of State of NY (SSNY) of NY (SSNY) on 01/02/15. Office with NY Dept. of State on 12/10/14. 11/26/14. Office location: New York Dept. of State on 12/11/14. Office on 01/22/15. Office location: NY location: NY County. SSNY designated Office location: NY County. Princ. County. SSNY is designated as agent location: NY County. LP formed in County. Princ. office of LLC: 109 as agent of LLC upon whom process bus. addr.: 510 Madison Ave., 8th Fl., upon whom process against the LLC Cayman Islands (CI) on 11/17/14. NY Greene St., Apt. 5B, NY, NY 10012. against it may be served. SSNY shall NY, NY 10022. LLC formed in DE on may be served. SSNY shall mail Sec. of State designated agent of LP SSNY designated as agent of LLC mail process to Wendy L. Schoen, 12/2/14. NY Sec. of State designated process to The LLC, Attn: Ms. upon whom process against it may be upon whom process against it may 301 E. 62nd St., #14B, NY, NY 10065. agent of LLC upon whom process Sabrina Desousa, 143 Division St., served and shall mail process to the be served. SSNY shall mail process The regd. agent of the company against it may be served and shall NY, NY 10002. General Purposes principal business addr.: c/o The to Jonathan J. Russo, Esq., Pillsbury upon whom and at which process mail process to: c/o Willkie Farr & Carlyle Group, 520 Madison Ave., NY, Winthrop Shaw Pittman LLP, 1540 against the company can be served Gallagher LLP, 787 7th Ave., NY, NY Notice of formation of IBP Group LLC. NY 10022. CI addr. of LP: c/o Broadway, NY, NY 10036. Purpose: is Corporation Service Co., 80 State 10019. DE addr. of LLC: c/o The Articles of organization filed with the Intertrust Corporate Services (Cayman) Any lawful activity. St., Albany, NY 12207. Purpose: Any Corporation Trust Co., 1209 Orange Secretary of State of N.Y. (SSNY) on Ltd., 190 Elgin Ave., George Town, lawful activity. St., Wilmington, DE 19801. Cert. of 10/28/2014. Office location: New York Grand Cayman KY1-9005, CI. Name/ SAC427 111414 LLC. Appl. for Auth. Form. filed with DE Sec. of State, County. SSNY has been designated addr. of genl. ptr. available from NY filed with Secy. of State of NY (SSNY) Notice of Formation of KASURA Townsend Bldg., Dover, DE 19901. as agent of the LLC upon whom Sec. of State. Cert. of LP filed with on 01/14/15. Off. loc: New York Co. PARTNERS I LLC. Arts. of Org. filed Purpose: all lawful purposes. process against it may be served. Registrar of Exempted LPs, Govt. Orig. juris: DE. SSNY des. as agent with Secy. of State of NY (SSNY) on SSNY shall mail process to the LLC, Administration Bldg., 133 Elgin Ave., of LLC upon whom process may be 01/09/15. Office location: NY County. PAIGE PROPERTIES LLC, a foreign 350 Fifth Ave, 59FL, Ste 5900, New George Town, Grand Cayman, CI. served. SSNY shall mail process to SSNY designated as agent of LLC LLC, filed with the SSNY on York, NY 10118. Purpose: Any lawful Purpose: all lawful purposes. c/o Robinson Brog, et al., Attn: Roger upon whom process against it may 12/12/14 under the fictitious name activity. A. Raimond, 875 3rd Ave, 9th Fl., New be served. SSNY shall mail process Paige Properties NY LLC. Office Notice of formation of Trrigr LLC. York, NY 10022. Purpose: General. to Seward & Kissel LLP, Attn: David location: New York County. SSNY is Notice of Qualification of Barclays Articles of organization filed with the E. Stutzman, One Battery Park Plaza, designated as agent upon whom Wealth Advisor Series - International Secretary of State of New York (SSNY) Notice of Formation of IMA Systems NY, NY 10004. Purpose: Any lawful process against the LLC may be Value Equity III L.P. Authority filed with on September 29, 2014. Office located LLC Arts. of Org. filed with Secy. of activity. served. SSNY shall mail process to NY Dept. of State on 1/8/15. Office at 350 5th Avenue, Suite 731, New State of NY (SSNY) on 12/19/14. The LLC, 94 Sturge Ridge Rd., location: NY County. Princ. bus. addr.: York, NY 10118. SSNY has been Office location: NY County. SSNY Notice of Formation of DAVIDJAMIE Wilton, CT 06897. General Purposes. 200 Park Ave., NY, NY 10166. LP designated for service of process. designated as agent of LLC upon 450 W. 17TH STREET ASSOCIATES, formed in DE on 11/17/14. NY Sec. of SSNY shall mail copy of any LLC to whom process against it may be L.L.C. Arts. of Org. filed with Secy. of Notice of Qualification of VNO 33-00 State designated agent of LP upon c/o Trrigr LLC 350 5th Avenue, Suite served. SSNY shall mail process to State of NY (SSNY) on 01/21/15. Northern Blvd LLC. Authority filed whom process against it may be 731, New York, NY 10118. Purpose: c/o Corporation Service Co., 80 Office location: NY County. SSNY with NY Dept. of State on 12/2/14. served and shall mail process to: c/o any lawful purpose. State St., Albany, NY 12207-2543. designated as agent of LLC upon Office location: NY County. Princ. bus. CT Corporation System, 111 8th Ave., Purpose: Any lawful activity. whom process against it may be addr.: 210 Route 4 East, Paramus, NJ NY, NY 10011, regd. agent upon NOTICE OF FORMATION OF CNY served. SSNY shall mail process to 07652. LLC formed in DE on 11/19/14. whom process may be served. DE Siegel/Ringler Family LLC. Arts. of Construction 701 LLC. Arts of Org filed Corporation Service Co., 80 State NY Sec. of State designated agent of addr. of LP: c/o The Corporation Org. filed with Secy. of State of NY with Secy of State of NY (SSNY 6/17/13). St., Albany, NY 12207-2543. LLC upon whom process against it Trust Co., 1209 Orange St., (SSNY) on 09/13/13. Off. loc.: NY Office Location NY County. SSNY Purpose: Any lawful activity. may be served and shall mail process Wilmington, DE 19801. Name/addr. Co. SSNY des. as agent of LLC upon designated agent upon whom process to: c/o CT Corporation System, 111 of genl. ptr. available from NY Sec. of whom process may be served. SSNY may be served and shall mail process Notice of Formation of BEJO & LAPPAS, 8th Ave., NY, NY 10011, regd. agent State. Cert. of LP filed with DE Sec. shall mail process to c/o Robinson against LLC to principal business LLC. Arts. of Org. filed with Secy. of upon whom process may be served. of State, 401 Federal St., Dover, DE Brog, et al., Attn: Steve R. Graber, address: 214 West 39th Street, NY, State of NY (SSNY) on 06/27/14. DE addr. of LLC: 1209 Orange St., 19901. Purpose: all lawful purposes. NY 10018. Purpose: Any lawful act. Esq., 875 3rd Ave, 9th Fl., New York, Office location: NY County. SSNY Wilmington, DE 19801. Cert. of Form. NY 10022. Purpose: General. designated as agent of LLC upon filed with DE Sec. of State, 401 Notice of Formation of GOLDEN Notice of Qualification of 2403 whom process against it may be Federal St., Dover, DE 19901. GUN, LLC. Arts. of Org. filed with NOTICE OF FORMATION OF Advance QUEENS PLAZA NORTH LLC. Appl. served. SSNY shall mail process to Purpose: any lawful activity. Secy. of State of NY (SSNY) on Global Health, LLC. Articles of Organ- for Auth. filed with Secy. of State of NY Corporation Service Co., 80 State St., 01/20/15. Office location: NY County. ization filed with the Secretary of State Qualification of Blackstone Real Estate (SSNY) on 01/08/15. Office location: Albany, NY 12207, regd. agent upon SSNY designated as agent of LLC of NY (SSNY) on December 4, 2014. Partners VIII L.P. Authority filed with NY County. LLC formed in Delaware whom and at which process may be upon whom process against it may Principal business address is 140 7th the Sect of State of NY (SSNY) on (DE) on 12/23/14. Princ. office of served. Purpose: Any lawful activity. be served. SSNY shall mail process Ave., NY, NY, 10011. SSNY has been 10/28/14. Office Loc: NY County. LP LLC: 152 W. 57th St., 60th Fl., NY, to c/o BFFA, 1430 Broadway, Ste. designated as agent upon whom formed in DE on 10/22/14. SSNY has NY 10019. SSNY designated as 1208, NY, NY 10018. Purpose: Any process against it may be served. NOTICE OF FORMATION OF Bernie been designated as agent of LP upon agent of LLC upon whom process lawful activity. Purpose: any lawful act or activity. Young Entertainment Enterprises, whom process against it may be against it may be served. SSNY shall LLC. Articles of Organization filed served and shall mail process to: c/o mail process to the LLC at the princ. Notice of Qualification of Avalon Notice of Qualification of BRIAR with the Secretary of State of NY The Blackstone Group L.P., 345 Park office of the LLC. DE addr. of LLC: Columbus Circle, LLC. Authority filed CAPITAL MANAGEMENT LLC. Appl. (SSNY) on November 11, 2014. Avenue, NY, NY 10154. DE address 2711 Centerville Rd., Ste. 400, with NY Dept. of State on 1/20/15. for Auth. filed with Secy. of State of NY Office location: NEW YORK County. of LP: 200 Bellevue Pkwy, Ste 210, Wilmington, DE 19808. Cert. of Form. Office location: NY County. Princ. bus. (SSNY) on 11/17/14. Office location: SSNY has been designated as agent Wilmington, 19809. Name/addr of filed with DE Secy. of State, Div. of addr.: 671 N. Glebe Rd., Ste. 800, NY County. LLC formed in Delaware upon whom process against it may genl ptr avail from SSNY. Cert of LP Corps., John G. Townsend Bldg., Arlington, VA 22203. LLC formed in (DE) on 07/25/14. SSNY designated be served. The Post Office address filed with DE Sect of State, 401 401 Federal St., Ste. 4, Dover, DE DE on 1/16/15. NY Sec. of State as agent of LLC upon whom process to which the SSNY shall mail a copy Federal St, Ste 4, Dover, DE 19901. 19901. Purpose: Any lawful activity. designated agent of LLC upon whom against it may be served. SSNY shall of any process against the LLC Purpose: any lawful activity. process against it may be served mail process to c/o Corporation served upon him/her is: 45 West Notice of Qualification of SHS Upper and shall mail process to: c/o CT Service Co. (CSC), 80 State St., 60th Street, #10D, New York, NY Notice of Qualification of UE City NY II LLC. Authority filed with Corporation System, 111 8th Ave., NY, Albany, NY 12207-2543. DE addr. of 10023. The principal business Management LLC. Authority filed Secy. of State of NY (SSNY) on NY 10011, regd. agent upon whom LLC: c/o CSC, 2711 Centerville Rd., address of the LLC is: 45 West 60th with NY Dept. of State on 11/18/14. 12/08/14. Office location: NY County. process may be served. DE addr. of Ste. 400, Wilmington, DE 19808. Street, #10D, New York, NY 10023. Office location: NY County. Princ. bus. LLC formed in Delaware (DE) on LLC: c/o The Corporation Trust Co., Cert. of Form. filed with Secy. of Purpose: any lawful act or activity. addr.: 210 Route 4 East, Paramus, NJ 05/21/14. SSNY designated as agent 1209 Orange St., Wilmington, DE State of the State of DE, Div. of 07652. LLC formed in DE on 10/7/14. of LLC upon whom process against it 19801. Cert. of Form. filed with DE Sec. Corps., John G. Townsend Bldg., Notice of Formation of Limited NY Sec. of State designated agent of may be served. SSNY shall mail of State, 401 Federal St., Dover, DE 401 Federal St. - Ste. 4, Dover, DE Liability Company (LLC) Name: 149 LLC upon whom process against it process to: c/o Cheer Land 19901. Purpose: all lawful purposes. 19901. Purpose: Any lawful activity. BAYARD LLC. Articles of Organization may be served and shall mail process Investments Group Limited, 152 West filed by the Department of State of to: c/o CT Corporation System, 111 57th St., Ste. 3901, NY, NY 10019. New York on: 10/29/2014. Office 8th Ave., NY, NY 10011, regd. agent Address to be maintained in DE: location: County of New York. upon whom process may be served. Corporation Service Company, 2711 Purpose: any and all lawful activities. DE addr. of LLC: 1209 Orange St., Centerville Rd., Ste. 400, Wilmington, Secretary of State of New York Wilmington, DE 19801. Cert. of Form. DE 19808. Arts of Org. filed with the (SSNY) designated as agent of LLC filed with DE Sec. of State, 401 DE Secy. of State, John G. Townsend Want To Get Your upon whom process against it may Federal St., Dover, DE 19901. Bldg., 401 Federal St., Dover, DE be served. SSNY shall mail a copy of Purpose: any lawful activity. 19901. Purpose: any lawful activities. process to: c/o Bryan Min, 149 Company In Front Of New York City’s Bayard Street, Brooklyn, NY 11222. Notice of Qualification of RELATED Notice of Qualification of Carlyle Asia REAL ESTATE FUND II (FEEDER), L.P. Structured Credit Opportunities Fund, Notice of Qualification of CORE Appl. for Auth. filed with Secy. of State L.P. Authority filed with NY Dept. of Influential Business Professionals? AMSTERDAM LLC. Appl. for Auth. of NY (SSNY) on 12/24/14. Office State on 12/11/14. Office location: NY filed with Secy. of State of NY (SSNY) location: NY County. LLC formed in County. LP formed in Cayman Islands on 01/22/15. Office location: NY Cayman Islands (C.I.) on 12/08/14. (CI) on 7/18/14. NY Sec. of State County. LLC formed in Delaware (DE) Princ. office of LLC: 60 Columbus designated agent of LP upon whom on 01/14/15. Princ. office of LLC: 60 Circle, NY, NY 10023. SSNY designated process against it may be served and Columbus Circle, NY, NY 10023. as agent of LLC upon whom process shall mail process to the principal SSNY designated as agent of LLC against it may be served. SSNY shall business addr.: c/o The Carlyle Group, Call Joanne Barbieri upon whom process against it may mail process to c/o Related Fund 520 Madison Ave., NY, NY 10022. CI be served. SSNY shall mail process Management, LLC at the princ. office addr. of LP: c/o Intertrust Corporate to c/o Corporation Service Co., 80 of the LLC. C.I. addr. of LLC: c/o Services (Cayman) Ltd., 190 Elgin at 212-210-0189 for State St., Albany, NY 12207-2543. Maples Corporate Services Limited, Ave., George Town, Grand Cayman DE addr. of LLC: c/o CSC, 2711 P.O. Box 309, Ugland House, Grand KY1-9005, CI. Name/addr. of genl. Centerville Rd., Ste. 400, Wilmington, Cayman, C.I. KY1-1104. Cert. of Form. ptr. available from NY Sec. of State. classified advertising opportunities. DE 19808. Cert. of Form. filed with filed with Registrar of Companies, P.O. Cert. of LP filed with Registrar of Secy. of State of DE, John G. Box 123, Ground Fl., Government Exempted LPs, Govt. Administration Townsend Bldg., Federal and Duke Admin. Bldg., 133 Elgin Ave., George Bldg., 133 Elgin Ave., George Town, of York Sts., Dover, DE 19901. Town, Grand Cayman, C.I. KY1- Grand Cayman, CI. Purpose: all Purpose: Any lawful activity. 9000. Purpose: Any lawful activity. lawful purposes.

February 2, | 2015Crain’s New York Business | 17 20150202-NEWS--0018-NAT-CCI-CN_-- 1/30/2015 11:47 AM Page 1

IN THE BOROUGHS BROOKLYN

with a variety of other retail options Bed-Stuy bar brawl that can infuse more activity on the neighborhood’s sidewalks from Continued from Page 3 frustration of many speakers. morning until night. to have a thriving nightlife,’but oth- “I strongly opposed the estab- “A lot of the small-business own- ers will say, ‘I like my traditional lishment because the noise is un- ers live in the neighborhood,” said bedroom community,’ ” said local bearable” from Doris, a nearby bar Michael Lambert, head of the Bed- City Councilman Robert Cornegy. along Fulton Street, said Lorna Stuy Gateway Business Improve- “There is some concern that these Fairweather, a member of the block ment District. “And these business ideas are mutually exclusive—but association. owners are also consumers of local I’d like to believe they’re not.” goods.” What gives him and others hope Likely approval Others note that several factors that compromise can be found is In the end, the board voted to will put strict limits on the growth of that virtually everyone agrees on one recommend that the application be gin joints.For one,state law bars the thing: They would hate to see the denied. But with the board’s role granting of a liquor license for any

neighborhood morph into the next merely advisory, the State Liquor anuta joe business within 200 feet of a church Williamsburg, which has just Authority is likely to approve the BONE OF CONTENTION: The State Liquor Authority will decide whether a bar can open here. or school, both of which Bed-Stuy 125,000 residents to Bed-Stuy’s application anyway, as Mr. Dubin- has plenty of. In fact, it has more 160,000, but more than 400 busi- sky and his backers well know. than double the number of church- nesses with on-site liquor licenses. “Everything is all set,” said people, including a small group opened in the summer of 2013. es and schools that Williamsburg That’s why—for the time being, Derek Singh, the owner of both the chatting on a recent weekday “They are gentrifying the area a bit, has. In addition, the side streets of anyway—bar opponents have abandoned building Mr. Dubinsky evening inside Doris, a quaint can- but overall they’re a positive thing.” the neighborhood are not zoned for logged several victories. hopes will house his bar, as well as teen set amid a stretch of closed, The picture is much the same at ground-floor retail. Many residents In November, for example, the still-functioning auto-body metal roll-down gates along Fulton other venues such as Dynaco,Bush- see such limits as a good thing. Community Board 3 ruled against shop next door. Construction could Street. baby Grill and Bed-Vyne Brew. “We don’t have an oversaturation veteran Brooklyn bar owner Ana- be finished “in three months,” Mr. “I think the new places are great,” at this point,and the board supports toly Dubinsky as he sought to turn Singh said. said Christian Perkins, 28, who has Room for more economic growth in this neighbor- an auto-repair shop on Atlantic Av- Such victories, even though they lived in the neighborhood on and off Even the local lawmaker, Mr. hood,” said Community Board 3 enue into a tavern with a large out- often come with concessions such as since 2009 and discovered Doris— Cornegy, believes there is still room Chairwoman Tremaine Wright. door space. The minutes of that earlier closing times or reduced out- which specializes in vinyl LPs, for more nightlife destinations in “But no community survives with meeting clearly reveal the mounting door seating,are welcomed by many booze and grilled cheese—after it Bed-Stuy as long as they’re matched restaurants and bars alone.” Ⅲ

(DTSS). The park, which sprawls th FROM across the site of the two New York 4 Annual Join Crain’s and New York AROUND World’s Fairs, has more than two dozen entrances. THE CITY Every year, 7 million visitors real estate’s most impressive come in to visit the park’s zoo, REAL ESTATE QUEENS botanical garden, museum, tennis players to explore the next stadium or go for a run.But even just Sunnyside up for getting in can pose problems. “The stage in the city’s development. rail-yard platform driving entrances don’t serve the CONFERENCE pedestrians,”said Susan Chin,exec- A plan to build a deck over the Sun- utive director of the DTSS. nyside Yards railroad complex could Once inside, the park’s complex add millions of square feet of residen- geography poses its own problems tial space to the neighborhood. for visitors. “This is a very famous PLANNING THE NEW NEW YORK Members of the local community park for how confusing it is to find board are calling for a feasibility study things,”said Jose Serrano-McClain, on building a platform that could a community organizer at the OPENING DISCUSSION contain affordable housing, a public Queens Museum. TUESDAY, MARCH 17, 2015 school and even a hospital. Under an initiative launched by Chairman of the NYC Planning Queens Borough President the DTSS in 2014 with the grand New York Athletic Club Commission Carl Weisbrod Melinda Katz agrees. “I recognize name “The World’s Park: Recon- 180 Central Park South that the potential development necting a Regional Park with Its will unveil the de Blasio above the Sunnyside Yards is finan- Neighbors,” the nonprofit organi- Networking Breakfast: 8:00a.m.-8:30a.m. cially feasible, especially with the zation is working with the Parks administration’s latest zoning Program: 8:30a.m.-12:00p.m. current growth and development Department, the Queens Museum policies and urban-planning throughout Long Island City and and local communities in order to Cost to Attend: western Queens,” she said. work out the upgrade. Two of a initiatives. $300 for individual ticket(s) The 167-acre rail yard, one of the planned 10 meetings have already Carl Weisbrod largest undeveloped parcels in the taken place. $3,000 for table(s) of ten city, is owned by Amtrak and shared In the meetings so far, the idea of PANEL DISCUSSIONS $4,000 for a table of ten and a full page with the Long Island Rail Road and improving the way that people journal ad in the event program. NJ Transit.Amtrak and the MTA are might better navigate the park with > Restaurant Tenants Tell All: slated to conduct a full feasibility new signs and better printed maps You must be pre-registered to attend this event. Rohini Dey, Ph.D., Owner, Vermilion Restaurants (NYC & Chicago) No refunds permitted. study on the property next year, ac- has come up as an early focus. “The cording to Amtrak officials. Parks Department has a new stan- Wylie Dufresne, Chef and Owner, Alder restaurant Stephen Gardner, vice president dard design for signs, and so we are Georgette Farkas, Founder & CEO, Rotisserie Georgette For more information: for Amtrak’s Northeast Corridor in- studying how we can implement a > Affordable Housing: Adrienne Yee vestment development,said the rail- system of signs,” said Mr. Serrano- Phone: 212-210-0739 road is open to new concepts for McClain. Joshua Barro, Domestic Correspondent, New York Times, The Upshot Email: [email protected] Sunnyside Yards. “We are working —valentina cordero Seth Pinsky, Executive Vice President, Fund Manager, with the city to understand what po- Metro Emerging Markets & Public Affairs Director, RXR Realty tential exists for the site,” he said. << >> —kerry murtha Additional speakers to be announced. REGISTER TODAY crainsnewyork.com/events-realestate2015 QUEENS In Flushing, there’s a map for that The nearly 900 acres of Flushing Meadows Corona Park may soon be For sponsorship opportunities, contact Joanna Harp at 212-210-0278 or [email protected] easier to navigate thanks to the non-

profit Design Trust for Public Space christie farriela

18 | Crain’s New York Business | February 2, 2015 20150202-NEWS--0019-NAT-CCI-CN_-- 1/30/2015 7:38 PM Page 1

Magnesium Corp. of America, the The bankruptcy trustee alleges at The house that Ira built fourth-largest producer of the in- least $41 million that should have dustrial metal, for $44 million. The been MagCorp’s was used to design account of what happened next is and build Mr. Rennert’s mansion, Continued from Page 1 our filings prove.” more modest $4.7 billion. based on publicly available court which reportedly cost $100 million some of the money to build his For Mr. Rennert, the trial repre- His wealth supports numerous documents. to complete. In all, the trustee seeks dream house. sents an uncomfortable airing of a causes in education and religion. At first it seemed as though Mr. to recover $118 million in fraudu- The trustee seeks up to $700 mil- deal gone wrong as well as his There’s Rennert Hall at Columbia Rennert had struck gold. The mag- lent transfers, plus interest that lion in recoveries and interest, plus wealth. In fact, his lawyers argued University and the Rennert chair in nesium market grew 8% annually could drive the tab up to $685 mil- unspecified punitive damages. Mr. that jurors shouldn’t hear anything finance and entrepreneurship at New between 1991 and 1995. The good lion, as well as punitive damages. Rennert,who is 80 years old and sel- about his fortune or home because York University. There’s also the times enabled MagCorp to issue dom speaks publicly,is slated to take such evidence would be prejudicial. Rennert Entrepreneurial Institute at $150 million in bonds in 1996, dou- ‘It’s all fungible’ the witness stand,said Scot Stirling, But a judge didn’t agree. Yeshiva University and the Rennert bling its debt load. In a deposition, Renco’s chief fi- an attorney for the trustee. Mr. Rennert, in many ways, is a Mikvah, a ritual Borrowing at the time may have nancial officer acknowledged the “Rennert was unjustly enriched classic New York success story. bath, at the Fifth IRA made sense because MagCorp had company has invested its funds in by the looting of MagCorp,” the He was born in Brooklyn in 1934 Avenue Syna- been unprofitable in three of the pre- “real estate that at times is used by trustee’s lawyers argue,because mon- and, a few years after graduating gogue,where he’s MONEY vious five years, yet it needed to up- members of the Rennert family.” ey taken from the company was used from Brooklyn College in 1955, an honorary date technology and clean up its pro- “I mean, it’s all fungible,” the ex- to “build a mansion for the personal landed a job on Wall Street. He lat- chairman. More $6.3B duction methods after run-ins with ecutive said of Renco’s money. use of Rennert and his family, while er became a client of junk-bond king controversially, IRA RENNERT’S regulators. But rather than investing Not long after MagCorp alleged- [MagCorp’s] mounting competitive, Michael Milken and built an indus- Bloomberg net worth the bond proceeds in needed im- ly began funneling money to help technology and environmental prob- trial conglomerate, Renco Group, News reported in provements, MagCorp in July 1996 pay for Mr. Rennert’s estate, the lems and liabilities were ignored.” which he still controls. 2009 that Mr. started sending the cash to Renco magnesium market started to wob- Mr. Rennert’s attorneys assert Rennert was part $756K Group, which passed it along to Mr. ble. Prices fell by 7% in 1996, recov- Humvee haul PROPERTY-TAX that it can’t be proved that money of a group of U.S. BILL for his Rennert, the trustee alleges. ered, then dropped again. In 2001, was diverted from MagCorp for his One sign of Mr. Rennert’s gold- donors who gave Hamptons estate Mr. Rennert’s side says the com- MagCorp filed for bankruptcy. personal use. Nor can Mr. Rennert en touch: In 1992, he bought the $25.4 million to pany had sufficient cash to finance The trustee argues the cash trans- be blamed for the bankruptcy of maker of Humvee military vehicles build Jewish capital improvements. fers from MagCorp to Mr. Rennert MagCorp, which his lawyers say for $133 million and 12 years later homes in Arab $41M Five months after the cash start- drove the company into the ditch. was caused by hostile market condi- sold a 70% stake to fellow billionaire parts of AMOUNT he is Mr. Rennert’s lawyers contend that alleged to have ed flowing in,Mr.Rennert formed a tions and came three years after the Ron Perelman for $935 million. Jerusalem. taken from company called Blue Turtles, whose MagCorp’s financial condition was distributions stopped. That comes out to a compounded In addition to MagCorp to pay purpose was to acquire land for his “indisputably strong”at the time and “MagCorp was a financially annual return of about 21%—more his vast Long Is- for his estate Hamptons estate. Two months lat- that the events that led to its bank- strong and successful company at than double the stock market’s per- land estate, Mr. er, Blue Turtles bought 63 acres of ruptcy were “not foreseeable.” the time of all of the distributions in formance over that period of time. Rennert also resides in an apartment waterfront property in Sagaponack, As the lawyers duke it out, shed question,” said a spokesman for Mr. Manhattan-based Renco Group at 625 Park Ave., according to court L.I., for $11 million. Construction a tear for anyone picked to serve as a Rennert’s company. “The only way is New York’s eighth-largest private filings. His neighbors are said to in- of Fair Field began in April 1998. juror.The trial is expected to last up the plaintiff can get around that core company, generating $5 billion in clude Henry Kravis of renowned Former Crain’s columnist James to six weeks, and more than 40 wit- issue of the case is by raising distor- revenue in 2013,according to Crain’s leveraged-buyout firm KKR. Brady in 2000 published The House nesses may be called. Ⅲ tions and by caricaturing Mr. Ren- research. Forbes estimates Mr. Ren- The events leading up to Mr. That Ate the Hamptons, a fictional- nert personally, but those distrac- nert’s personal fortune is $6.3 billion, Rennert’s legal tangle began in ized account of this contemporary LISTEN to a discussion at tions do not have legal substance, as though Bloomberg reckons it’s a 1989, when Renco Group acquired Kubla Khan. CrainsNewYork.com/podcasts

that return became prohibitive.” Conversely, sites that still afford Developers race to beat expiring tax break a developer the opportunity to qual- ify for the current abatements have Continued from Page 1 work on another apartment house. to make rental apartment projects become even more desirable, as well City, Queens, and in Crown There, however, the project sits in a work financially without the current as valuable. Greystone, a real estate Heights, Brooklyn. Like others, she geographic zone where it receives 421a abatement,” Mr. Zegen said. development and finance company, knows that as long as she has a por- 421a abatements as of right, mean- “If you’ve got an eligible site, you’re recently bought a building site on tion of a development’s foundation ing that no affordable housing has to moving as fast as you can right now Fourth Avenue in Park Slope where poured before the June deadline,the be delivered to get the benefit. to beat the deadline.” the previous owner had already se- project can reap the current abate- To cash in on the current 421a cured construction permits, which ments. Eroding demand benefits,developers need to do more will allow Greystone to begin build- “I think it started to dawn on de- The fact that some development than break ground and pour con- ing almost immediately. velopers in recent months that it’s an sites receive 421a benefits as of crete.It can take six or more months “Our answer to sellers of devel- uncertain situation,”Ms.Moskovits right, while others are required to to line up construction permits from opment sites that are on the market said. “It takes months to get a pro- include affordable housing,traces to the city’s Department of Buildings. but don’t have any approvals lined ject moving. So we have been work- changes made to 421a over the Given that lead time, development up is ‘You’re dreaming,’ ” said Jeff ing around the clock.” decades.The tax break took effect in sites on the market today—unless Simpson, chief executive of proper- Many others find themselves in 1971, a time when people were flee- they come with preapproved build- ty development at Greystone. “On the same place. Joshua Zegen, co- ing the city for the suburbs, and de- ing plans—will be developed under the other hand, the fact that this site founder of real estate investment velopers needed financial incentives whatever modified version of 421a was ready to go enhanced the value and development firm Madison to build. Subsequent revisions have Albany agrees on by June. for sure.”

Realty Capital, has accelerated ef- yielded a system in which benefits buck ennis That reality and uncertainty over Meanwhile, Adam America, a forts to break ground for an eight- are available in well-off areas, in- what, if any, modifications will be developer that has a handful of proj- story building with 191 apartments cluding all of Manhattan and water- ‘It’s very hard made has already begun to erode de- ects underway in Brooklyn,has pur- that he plans to put up on Atlantic front Brooklyn and Queens, only if mand for plots in areas that were chased a development site on Bed- Avenue in Brooklyn’s Clinton Hill. developers set aside 20% of apart- to make rental coveted just months ago.James Nel- ford Avenue in Crown Heights.The He hopes to start work on the ments as affordable. In all other son, a sales broker with Cushman & firm is betting it can break ground in 171,000-square-foot property’s areas, no such requirement exists. projects work Wakefield, said three-quarters of time to secure existing 421a breaks, footings within the next month. Today, when building rental the bidders dropped out of the auc- because it put together detailed con- At stake for Mr.Zegen is not just apartments in much of the city has without the tax tion for a rental-development site he struction plans long before closing a tax break, but also a potential become highly lucrative, pressure is was marketing in Brooklyn once it on the site. If that gamble doesn’t bonus that will allow him to add mounting to rein in some of 421a’s break’ became clear that construction pan out and Adam America fails to square footage over what would benefits. Some housing advocates couldn’t begin in time to meet the get all the needed permits in time to normally be permitted on the site.In want projects to get abatements —Joshua Zegen 421a deadline. An existing tenant break ground before June, it has a return, Madison Realty Capital only if they create affordable will not vacate the premises for backup plan. must reserve 20% of the building’s units—which are priced for renters months. “Going condo is always an op- units for affordable housing. City who earn 60% or less of the area’s tion for us,” said firm co-founder officials, including Deputy Mayor median income. Going condo Omri Sachs.Condominiums can be Alicia Glen,have suggested that de- An even bigger worry among de- “About 30% of a rental property’s riskier to build, but given the velopers should either be barred velopers is that the portion of a ics of rental development deals— revenue can go toward paying taxes strength of the city’s residential sales from taking advantage of both ben- project that they will need to set and the number of units that get and operating expenses, so without market,builders say that the coming efits simultaneously or be forced to aside as affordable will rise to 25% built in the city. the 421a abatement, developers changes to 421a are just another in- create more affordable housing. or even 30%, from 20% currently. “Given how high land prices were looking at only a 4% to 5% re- centive to make the switch over to a Ten blocks away on Myrtle Av- Developers insist that such a shift have risen in the city and the rising turn for this deal,” Mr. Nelson said. project they would sell off rather enue, Mr. Zegen’s firm is rushing would drastically alter the econom- costs of construction, it’s very hard “Development has a lot of risks, and than rent up. Ⅲ

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Reviving city’s apparel industry

Continued from Page 3 programs are aiming high. regular education exhibits and a erating cost. “It’s a good idea to attempt to do communal manufacturing space. “There is significant unmet de- these things,to bring back manufac- “We like them with a little bit of mand for garments and accessories turing,” said Andy Jassin, managing experience, so they understand how made in New York,” said Deputy director of Jassin Consulting Group, tough it is to be in business but still Mayor Alicia Glen, who is known a retail consultancy, noting the ad- want to do it,” said Ms. Johnson, for wearing New York designers.“It vantages of control with smaller, lo- noting that the accelerator aims to behooves us to make sure that de- calized production runs.“It’s not just help a company increase its sales to signers and manufacturers commit- about knowing how to make prod- more than $500,000 from $30,000. ted to being in New York … have the ucts—it’s about understanding pro- For its expertise,it charges a month- space and the resources and the reg- duction in general to really be good ly fee between $400 and $700. ulatory environment to operate in the fashion business.” here.” Some incubator alumni have ‘Big goals’ gone on to numerous accolades. Even smaller programs come Government funding Public School, a design house led with a nominal fee: New York Fash- The city is pushing the move- by Dao-Yi Chow and Maxwell ion Tech Lab,a 12-week program in buck ennis; cross dave ment, most recently investing $3.5 Osborne that was part of the inau- midtown for new technology start- MICHAEL BLOOMBERG hired JUSTIN SMITH as CEO of Bloomberg Media. Mr. Smith helped million in Manufacture New York. gural CFDA program, is now a ups, charges applicants $250. make Atlantic Media profitable and knows how to appeal to a wider audience. Pratt also received city and state globally recognized brand, for ex- Similarly, Manufacture New funding for its initiative, and the ample. Yet one industry expert said York, which founder Bob Bland CFDA used a $200,000 grant from the opportunities available to de- transitioned late last year from a the Economic Development Corp. signers through these new fashion garment-center pilot to a massive Bloomberg Business to start its incubator in 2009. programs—from educational facility in Sunset Park’s Liberty The support is long overdue. workshops and mentorships to par- View Industrial Plaza, plans to bill Manufacturing jobs in the apparel ticipation in promotional videos— its designers between $450 and Continued from Page 3 rent and former employees, is Mr. sector shrank to 16,100 in 2013,from can often be overwhelming and $650 per month when it begins ics make stories pop. Reasonably Bloomberg’s desire to have a place 23,500 in 2007,according to the U.S. stressful. bringing them into the new head- well organized and accessible for a on the world stage. Bureau of Labor Statistics. Data Of course, demand is still robust, quarters in February. site with so many parts,it’s a place on In addition, the relationship be- from the U.S.Census Bureau point to as many budding designers vie for Ms. Bland expects to include the Internet where a reader might tween the two sides of the business is an even bigger drop,of 40%,to 2,847, inclusion. Debera Johnson, execu- about 25 brands each season in her actually want to spend some time. not always a healthy one—at least in in the number of clothing manufac- tive director of Pratt’s Brooklyn program, which also offers on-site “Our goal is to become the lead- China, where the government turing businesses headquartered here Fashion + Design Accelerator, said production, such as pattern-making ing global business-media company blocked some terminal sales in 2012 between 2007 and 2012. In Decem- 75 companies applied for no more and sample-making, to startups like in the world across all plat- over a Bloomberg News ber, prominent designer Naeem than 30 spots. The program, which Ms. Copeman’s. Two and a half forms and geographies,” article on the family Khan, known for dressing first lady focuses on sustainable and ethical years in, Ms. Bland said her incuba- said Justin Smith, CEO of wealth of the country’s in- MONTHLY21.6M Michelle Obama, announced he is production,requires a two- to three- tor is only just beginning to heat up. Bloomberg Media Group. UNIQUE coming leader. In 2013, moving his 120-person firm from year commitment from designers “It’s always been a work in “We do have a business- VISITORS at Bloomberg News’ then- New York to Miami. who have already been in business progress,” said Ms. Bland. “We do model advantage in the Bloomberg.com, editor in chief, Matthew The long-term trend will be hard for a while. have big goals, and they take time to sense that our media com- less than Winkler, killed an inves- to turn around, but the incubator The Brooklyn center also hosts achieve.” Ⅲ pany is, first and foremost, Business Insider tigative story about the designed to drive value to families of Chinese offi- the core terminal business. That [al- cials. His explanation that it was not lows us] to invest at a time when tra- ready to be published was disputed Shake Shack eyes post-IPO plans ditional media is retrenching.” by some Bloomberg insiders. Mr. Smith guided the success of The Week and then led Atlantic Me- Playing catch-up dia, returning it to profitability for Asked about conflict with the The burger joint’s the first time in more than a decade. core business, Mr. Smith defended stock was red-hot But he won’t have to worry about the media division as a “fiercely in- Bloomberg Media’s paying for itself dependent news organization with a on its first day as a (it generated $300 million in rev- body of work that stands for itself.” publicly traded firm enue last year, according to Burton- A bigger issue may be the com- Taylor). Though he says he runs its petition Bloomberg Media faces as operations with an eye on the bot- it works to expand its audience. In BY LISA FICKENSCHER tom line, the company has more December, its combined properties pressing uses for its media proper- drew 21.6 million unique visitors, Shake Shack’s red-hot IPO and first ties than making a profit from them. just ahead of The Wall Street Jour- day of trading last Friday—with nal Online, which had 21 million, Not just for finance

shares opening at $47, up 124%— buck ennis and far behind the digital properties are creating high expectations for HUMBLE BEGINNINGS: Shake Shack’s original stand in Madison Square Park Right now that includes extend- of The New York Times, at 57.3 mil- the company that started out as a ing the company’s reach beyond its lion, according to comScore. Busi- humble burger and hot-dog stand in core group of financial-industry ness Insider, which operates on a Madison Square Park 14 years ago. Under 40 in 2006,has risen through its second. professionals to a more general, shoestring compared with While most of the focus is on the ranks of Mr. Meyer’s Union Shake Shack’s original purpose global business audience.That shift, Bloomberg, was also way ahead, revered restaurateur Danny Meyer, Square Hospitality Group. He has was to help raise money for Madi- according to Mr. Smith, will ensure with 35.4 million unique visitors. it is Shake Shack’s CEO, Randy led Shake Shack since its inception. son Square Park. “The biggest sur- greater access to newsmakers, more But Mr. Smith and Chief Digi- Garutti, who will lead the compa- “We are not coming out to build prise is that this IPO even hap- influence and a bigger profile, all of tal Content Officer Joshua Topol- ny’s growth, opening 10 new Shake thousands of restaurants,” he said. pened,” said Mr. Meyer. which should strengthen the com- sky, co-founder of the popular tech Shacks a year. “Ten a year is an appropriate pace Mr. Garutti, who has a 3% stake pany’s leadership position in finan- site The Verge,describe the new site “No company can be perfectly for us.” in the company, said Shake Shack cial data services. as a starting point.Mr.Smith’s blue- prepared for something like this,” will continue to adhere to Union “It makes no sense to evaluate print calls for building a portfolio of said Mr. Garutti. “But we’ve spent More to come Square Hospitality’s brand of serv- [the media division] on a stand- digital brands that will target differ- the last year getting ready, and we The first 10 to open in 2015 un- ice and corporate culture. alone basis,” he said. ent segments of the global business have a strong, balanced group of der the publicly held company al- “I’m thrilled that so many of our The idea that a robust, wide- audience. leadership.” ready have signed leases, including team members became sharehold- ranging media operation would be In the meantime,some observers That group includes Jeff Uttz, two in Austin,Texas,one in Boston ers,”he said,adding that every man- good for the terminals has been a see the new flagship as, at the very the burger chain’s chief financial of- and the first in Baltimore, as well as ager received stock options to par- subject of some debate, including least, a big improvement. ficer, who previously led Yard one in Lake Success, L.I. Shake ticipate in the IPO and that hourly inside Bloomberg. Observers point “How do you put the pieces to- House’s expansion from three loca- Shack’s westernmost location workers who’d been with the com- out that subscribers are drawn to the gether in a way that makes sense?” tions to 40 and its acquisition by debuted in Las Vegas in late pany for two years also had the op- terminal for its utility, and that ter- asked Outsell Inc.analyst Ken Doc- Darden Restaurants; and Peggy December. portunity to buy stock last week. minal users prize market-moving tor, describing a challenge for the Rubenzer, vice president of people There are 11 locations in New A graduate of Cornell Universi- news and information, not smartly Bloomberg media empire.“This de- resources at Shake Shack, who led York City, where Shake Shack will ty’s School of Hotel Administra- written features or investigative sto- sign is a good step toward that.” Ⅲ human resources at P.F. Chang’s continue to grow. After the first tion, Mr. Garutti expects to lead ries. A more likely explanation for China Bistro for a decade. one launched, it took five years for Shake Shack for many more years, the massive investment in the media LISTEN to a discussion at Mr. Garutti, 39, and a Crain’s 40 Union Square Hospitality to open he said. Ⅲ division, according to several cur- CrainsNewYork.com/podcasts

20 | Crain’s New York Business | February 2, 2015 20150202-NEWS--0021-NAT-CCI-CN_-- 1/30/2015 11:50 AM Page 1

HELLUVA TOWN INSIDE Source Meeting Developing Capitalism’s guru speaks country out PAGE 22 Forget Nashville. Brooklyn is Out and About rolling out the red carpet for country-music stars. Stars in lovers’ eyes at Barclays Center has formed a the planetarium PAGE 23 three-year partnership with local country station Nash FM 94.7 to bring at least two concerts a year to the Brooklyn arena.The deal comes after the arena’s first country-music show—a Luke Bryan (pictured) concert in September— sold out. “This is a way for us to diversify by bringing in new acts,” said Barclays Center CEO Brett Yormark. melanie fidler He said Barclays chose to align with the radio station because of its GOING STRONG: Former expertise and ability to help literary agent Rebecca promote the shows. “The market Strong said coding has a lot of competitors, so you introduced her to “a new want to have the most impactful way of communicating.” relationships,” said Mr. Yormark. Cumulus Media purchased the station at the end of 2012 and introduced the country format in January 2013. About 1 million listeners tune in weekly, according to John Dickey, executive vice president of content and programming at Cumulus. “This was a chance for us to partner with an operator of world- class facilities and bring more opportunities to our listeners in New York,” said Mr. Dickey. The first “Nash Bash” is planned for March 24. The partners were mum on who would be taking the stage. —theresa agovino Clean break

Sober people want to party, too. Clean Fun Network, a new website and social community for those who don’t drink or do drugs, is celebrating its official launch on Feb. 5. Its audience potential is sizable: Tech’s gray area Approximately one-third of Americans Coding academies aren’t for kids anymore: abstain from alcohol, according to a 2012 Gen-X career changers flock to digital boot camps Gallup poll.

“People think being sober is the buck ennis end of fun as they know it,” said co-founder MJ Gottlieb, who along with co-founder Jimmy Hamm is BY MATTHEW FLAMM sober after years of struggling with DIGITAL drug and alcohol addiction. “Not n the digital economy, where 35 is the new 60, some professionals with résumés that only can you have fun when you’re DOUGH sober, you can have infinite fun.” used to be considered impressive (i.e., long) face an uncertain future. But a number of With the free app, currently in these Generation Xers have found a solution to derailed or simply unsatisfying careers beta, members can anonymously fill out their interests and connect with in the new age: They’re enrolling in boot camps to learn how to code. ¶ At General others in groups and plan activities. Assembly, the largest of New York City’s schools, which offer 12-week crash courses for CFN also organizes events like around $12,000, 18% of students across all of its campuses in the U.S. and abroad are 35 $12K yoga and dinner for $45, weekend APPROXIMATE TUITION jaunts to Hunter Mountain for or older.The school’s biggest group, not surprisingly, remains people in their mid- for a 12-week course at a $150, and all-inclusive trips (minus coding academy airfare) to far-flung destinations 20s—just like much of the industry the over-35 graduates hope to join. ¶ Despite the such as Costa Rica for $1,150. age difference, these freshly minted developers have high hopes for their new careers, and can CFN said it has received “a sound as fervent about coding as any hoodie-wearing college dropout. Some are transitioning from couple hundred thousand dollars” in funding from Mr. Hamm and Irelated computer fields in order to build digital products, while others are embracing the another investor. It plans to expand technology that helped put them out of a job. ¶ “I feel like I had been searching intellectually and $70K+ to three other cities, including Los AVERAGE STARTING Angeles, by the end of the year. found this new thing I never expected—code,” said Rebecca Strong, 45, who ran her own literary SALARY for a coding- —jessica kramer agency in Manhattan for a decade. “It introduced me to a new way of See TECH on Page 22 academy graduate

February 2, 2015 | Crain’s New York Business | 21 20150202-NEWS--0021,0022-NAT-CCI-CN_-- 1/30/2015 11:43 AM Page 2

SOURCE Tech’s gray area MEETING: Interview by Aaron Elstein H. RODGIN COHEN Continued from Page 21 evaluate [graduates] over a three- communicating.” month internship, and we look for Ms. Strong, who was also aptitude.If the aptitude is there,then subsidiary-rights director at Crown we know we can teach them.” Publishing for five years, traces her General Assembly insists that, A view of the market by career turning point to a panel dis- overall, its older graduates do fine. cussion she attended in 2013 where “Students who risk switching a female engineer insisted that careers,” said Jake Schwartz, co- women were naturals at coding. founder and CEO, tend to be “ad- the ‘overlord of capitalism’ She started General Assembly’s venturous and self-aware. I don’t Web development course last April, know a lot of companies who would graduated in July, closed her agency be against hiring people like that.” .Rodgin Cohen,70, want cost-cutting, which is a euphe- things in unguarded moments. and began honing her skills as a free- is senior chairman mism for getting rid of a lot of peo- Everybody anticipates some degree lance full-stack developer—working Other hurdles at law firm Sullivan ple. If they can get enough support of personal privacy. on both a website’s back end and its But a youth-oriented job market & Cromwell. He [from shareholders] for their ideas, user-facing side. Now she’s ready for and the lack of a formal degree aren’t has advised on near- that’s fine, but I think a number of Bill Dudley, the New York Fed a job. “I really want to work for the the only hurdles for midlife boot- Hly every major banking merger over them have disproportionate influ- president, talks about culture person who looks at my profile and is camp graduates.While coding acad- the past 30 years and played a vital ence because they are so aggressive. problems at banks, how there is lack of not terrified,” she said. “Someone emies boast of job-placement suc- role in shaping the rules of banking respect for the law. Is that pervasive? who says, ‘I see the value in that [ex- cess rates of well over 90%, with av- before and after the financial crisis. How legitimate is the Tom Baxter, the long- perience], and I want that person re- erage starting salaries of more than His counsel is sought by bankers, criticism that regulators WHERE running and highly respected porting to me.’ ” $70,000, some career changers must Treasury secretaries and finance are beholden to the THEY general counsel of the Feder- That employer may be difficult to brace for a salary cut. ministers worldwide.The New York industry they oversee? al Reserve Bank of New York, find, but, as other Martin Butler, Times has described his influence Can I say it never MET made an extremely pertinent graduates have 43, expects any job on Wall Street as “legendary and happens? Of course SULLIVAN & point. The problem is less found, not impos- ‘We can talk he finds as a devel- pervasive,” while the blog Zero not.Do I see it as per- CROMWELL’s culture writ broad and, more sible. Roxanne oper to pay half of Hedge has called him the “overlord vasive? Absolutely headquarters at significantly, subcultures writ about grunge 125 Broad St. Mr. Mustafa was an au- what he made run- and viceroy of Western capitalism.” not. Regulators are Cohen’s 30th- small. In areas of the bank, dio engineer for ning tech support human beings, they floor corner office you have subcultures that are most of a decade and MySpace and operations as a What are your banking clients calling make mistakes, they has unobstructed contradictory to the overall starting in 1999, a and laugh’ global IT direc- you about these days? don’t see things, but harbor views. culture of the bank. I think period that saw re- tor—which he did Today there are four critical areas. that doesn’t mean ATMOSPHERE: the real effort has to be to cre- trenchment across until September, Enforcement has become so in- they’re captured by Pin-drop quiet. ate a universal culture that’s The day’s the music industry. when he started a credibly ramped up,the penalties so the banks. Being on newspapers applied and respected. Coming back to Web-development much more severe and the ground the receiving end, I awaited outside work after six years immersive at Full- rules less and less clear. Second, can say that anyone Mr. Cohen’s But maybe these culture as a stay-at-home mom, she decided stack Academy. there are so many regulations with who thinks the regu- office. Down the clashes mean big banks are too to reinvent herself as a user- “Whenever I mention this deci- questions about how you interpret lators are going easy hall, a library large to be managed properly? includes a vast experience designer. sion to people,you see this blankness and apply them.Third, bank merg- on the banks is living collection, and on I know that’s what someone Last February, Ms. Mustafa, 41, come over their faces, like, why ers have been moribund but are be- in a parallel universe. the walls hang would argue, but I don’t graduated from General Assembly’s would I give that up?” Mr. Butler ginning to show signs of stirring. That’s not what I see. such memorabilia think it’s a question of size or UX design immersion course and said. He added that he was happy in And the fourth issue that’s starting as a mid-1980s complexity. You could have What’s an example of photo signed by began job hunting—an experience his old profession, but had found to grab hold is activist investors tar- all the U.S. these [culture] problems in she likens to divorced people who that the most rewarding moments in geting banks, like [Nelson Peltz’s] tougher regulation? Supreme Court very plain-vanilla banks. In start dating and wonder how much his career were spent on “side proj- Trian Partners at Bank of New York The whole stress-test justices and a the 1980s, with thrifts, you to talk about their past. ects,” doing development work. Mellon. These activists go in with process overseen by medal from the had problems that went all queen of the By May, the Staten Island resi- His wife gave her OK for his new very small stakes, and then there’s the Federal Reserve Netherlands. the way to the top. In most dent had landed a position as a UX venture—despite the expected pay what I call the wolf-pack phenom- has forced banks to cases, you will find that cul- WHAT THEY ATE: designer at interactive design shop cut, the $12,500 in tuition and the enon, where other institutional in- substantially raise Ⅲ Nothing ture problems aren’t perva- Nickelfish, in Mendham, N.J. minimum three to four months off vestors who support them come in. their capital levels. sive today, though I know Staffers are in their 20s, but the ex- that he’d need for the program. “I Regulators have also substantially regulators are skeptical of the no- ecutive team, like her, went through want to wake up in the morning ex- There’s nothing wrong with that, right? heightened liquidity requirements. tion that it’s just a few bad apples. the dot-com boom. cited to go to work and build some- That’s capitalism. It also really bothers me that some- “We can talk about grunge and thing,” Mr. Butler said. As a concept, I agree—that’s what body [former Federal Reserve Some law firms have struggled in MySpace and laugh,” Ms. Mustafa He isn’t alone among midlife ca- capitalism is all about.The question Bank of New York regulator Car- recent years. How is business at said.“The 20-somethings have only a reer changers in wanting to fulfill a is, do activists have undue influence, men Segarra] who comes in and se- Sullivan & Cromwell? vague idea what we’re talking about.” long-held ambition. Tech boot and are their goals consistent with cretly tapes her colleagues is some- We’re fortunate to have a bal- camps may not replace a computer- where we want companies to come how regarded as a heroine. anced business model, so when Filtering out science degree,but the 12-week pro- out? Activists tend to come with one one of the various practices is up, Her experience notwithstanding, grams, which can include an addi- objective: Get the stock to pop up. Well, she’s a whistle-blower, certainly. another is down. I’ll always be recruiters cite a number of challenges tional 100 hours of prep work,are in- That’s very short term. They want I think she’s pictured as a heroine in prepared to miss the crest if I miss for middle-aged boot-camp gradu- tensive enough for a career do-over. the company or divisions sold or they some publications. Everybody says the undertow. Ⅲ ates. Hiring managers prefer candi- “I was trying to get into Web de- dates with actual computer-science velopment,” recalled Denine Guy, degrees, as well as some job experi- 38, of a period in her career during PLAY/LIST People, places and things that make H. Rodgin Cohen tick ence—though not too much. “The the dot-com boom.And she went on view is that they’ll be harder to wanting to be a developer through TWISTS, TURNS: and turns that lead “Maybe Baby” and called Blackberry mold,” said Matt Leighton, director positions that included IT consult- Mr. Cohen grew up in you to the place.” “That’ll Be the Day.” Farm. Several of recruitment at Manhattan-based ant for Accenture and, after she got Charleston, W.Va., “Holly had the prominent singers tech-staffing firm Mondo. an M.B.A., e-commerce merchan- where his father ran TOXIC TIES: In 2009, greatest oeuvre in a performed, including One solution is to look for jobs at dise planner at MyHabit. drugstores. After he was identified as short period of time.” Patti Griffin, “who I more established companies, rather Working in e-commerce made graduating from a candidate for think is fabulous.” than at early-stage startups. “The her especially eager to build web- Harvard Law the No. 2 job SOUND CHECK: Last Joan Baez also sang. best bet is to find larger companies sites. Last June, she enrolled in the School in at the U.S. summer, he “It was the first time I that have more infrastructure, re- Flatiron School, and shortly after sources and gray hair,” said Rick graduating in August became a Web 1968, he Treasury, but ap photos vacationed in saw her perform live Dionisio, chief executive of TTS developer at SunGard Consulting. served as a reportedly ROCK ’N’ ROLL: He’s Tennessee at a resort in 50 years.” Staffing in Manhattan. Ms. Guy feels that the opportu- military withdrew his a big music fan, It also helps if there’s a mentoring nity to become a developer is partic- lawyer before name from starting with 1950s or training program—which goes ularly compelling for women. “A lot joining Sullivan & consideration. rock and roll. His for graduates of any age.“We look at of women didn’t even think they Cromwell in 1970. Evidently his Wall favorite performer [boot-camp programs] as a filter,” were capable of doing it,” she said. “All these roads that Street ties were from that time is said Nick Rockwell,senior vice pres- “Now they’re finding out that they you take, it’s politically Buddy Holly, and ident of digital at Condé Nast. “We are.” Ⅲ probably 50 twists troublesome. favorite songs include

22 | Crain’s New York Business | February 2, 2015 20150202-NEWS--0023-NAT-CCI-CN_-- 1/30/2015 11:45 AM Page 1

OUT AND SNAPS Celebrity chefs toast Citymeals-on-Wheels ABOUT by Jessica Kramer

CAREER BUILDERS THURSDAY, FEBRUARY 12, AND FRIDAY, FEBRUARY 13 The Center for Public Scholarship hosts the 32nd Social Research Conference, this year titled THE FEAR OF ART. The meeting will examine censorship and the threat of freedom of expression for artists through a historical lens and a look at what’s happening now. Chinese artist and activist Ai Weiwei (who is patrickmcmullan.com dominic neitz dominic under surveillance by the Chinese patrickmcmullan.com JOE and DIANA DIMENNA at the DiMenna CULTURE FIX government) will give the keynote DINO GATTO, DANIEL BOULUD, MARCUS SAMUELSSON, HERB KARLITZ and FRANK Children’s History Museum’s Third Annual TUESDAY, FEBRUARY 10 address via a video titled The Censorship PELLEGRINO at Karlitz & Co.’s 25th Anniversary Celebration & Toast to Citymeals-on-Wheels. The Jan. Family Benefit Party. The Jan. 24 fundraiser Quirky alternative rock band They of Artists: Artists in Prison, Artists in 20 event honored Mr. Karlitz’s culinary marketing agency as well as the food-delivery nonprofit. raised more than $250,000. Might Be Giants are the VIP guests in Exile. The conference starts at 10 a.m. at this week’s ASK ME ANOTHER. The NPR the New School, 66 W. 12th St. Tickets podcast combines trivia, comedy and are free, but those interested should music for an hour of entertainment. The register at newschool.edu. show tapes at 7:30 p.m. at the Bell House at 149 Seventh St. in Gowanus, FRIDAY, FEBRUARY 13, Brooklyn. Tickets are $20 and can be THROUGH SUNDAY, FEBRUARY 15 purchased at thebellhouseny.com. The Museum of the Moving Image hosts its annual celebration of independent SATURDAY, FEBRUARY 14 video games and their creators at Treat your loved one to a Valentine’s Day INDIECADE EAST 2015.The weekend night on the town at MICHAEL ARENELLA’S features dozens of new and unreleased SUMPTUOUS SWEETHEART SOIRÉE.The games, as well as talks, panels and elegant evening from the man behind the workshops by designers, developers and Jazz Age Lawn Party includes live other insiders.The festival takes place entertainment, a dance lesson, a from 10:30 a.m. to 6 p.m. (ending at 10 sweetheart kissing booth, artisanal p.m. on Saturday) at the Museum of the cocktails, hors d’oeuvres and sweets. Moving Image at 36-01 35th Ave. in Doors open at 9 p.m. at Norwood at 241 Astoria, Queens.Tickets are $100 to $125 W. 14th St.Tickets are $90 and can be for a full festival pass, or $35 to $55 per patrickmcmullan.com purchased at dreamlandorchestra.com. day, and can be purchased at indiecade.com. CHRISTINE SCHWARZMAN, KALLIOPE KARELLA and SARA AYERS at the

American Ballet Theatre’s 75th Anniversary marina-villela-photography Celebration Party. The Jan. 21 fete featured BRUCE LINCOLN and ANDREW RASIEJ at Civic Hall’s opening ceremony. The Jan. 20 event DON’T MISS SEEING STARS the first showing of excerpts from American gathered political leaders to celebrate the new community center for tech innovation in Ballet Theatre: A Documentary Film. the Flatiron district. SATURDAY, FEBRUARY 14 The American Museum of Natural History gives lovers an out-of-this- See more of this week’s Snaps online at CrainsNewYork.com/galleries. world experience with ROMANCE UNDER THE STARS at the Hayden Planetarium. The evening includes a cocktail hour with open bar, Champagne, hors d’oeuvres and music, followed by a romantic tour of the skies. The museum, at Central Park West and West 79th

Street, is offering two sessions, one at 6 chesekcraig / p.m. and one at 9:30 p.m. Tickets are

$125 and can be purchased at amnh.org. amnh

OPENING FUNDRAISERS SATURDAY, FEBRUARY 14, THROUGH TUESDAY, FEBRUARY 10 SUNDAY, JANUARY 31, 2016 The Martha Graham Dance Company’s The SHAPE&DESIGN GALA honors Frank Gehry, who Museum of contributed stage design to the piece Steps in the Modern Art Street, and Peter Arnell, whose film examines Shape&Design will be screened. Also on tap is a whether world premiere of Lamentation Variations.The design in the performance takes place at 7 p.m. at the Joyce digital age is Theater at 175 Eighth Ave. Dinner and truly for the dancing follow at IAC’s headquarters at 555 W. masses in 18th St.Tickets are $750 and up and can be

moma THIS IS FOR purchased at marthagraham.org/gala. EVERYONE: DESIGN EXPERIMENTS FOR THE COMMON GOOD.The SUNDAY, FEBRUARY 15 exhibit showcases contemporary AKC Humane Fund hosts its BARKFEST AT Get in on the action with our Featured Advertising Sections. We use award-winning works from MoMA’s collection. BONHAMS CHARITY BRUNCH, celebrating the The museum, at 11 W. 53 St., is canine in art. Guests are welcome to bring journalists to write about select topics such as Personal Wealth, Accounting, Gift open from 10:30 a.m. to 5:30 p.m. their own pooches.The gathering takes place Giving and more. There’s no better way to reach a targeted audience. daily except Friday, when it is open from 10 a.m. to noon at Bonhams at 580 until 8 p.m. Tickets are $25 for Madison Ave.Tickets are $50 and can be adults. Visit moma.org. purchased at pages.akc.org/barkfest. March 9, 2015 April 6, 2015 April 20, 2015 May 12, 2015 Insights on Out Of Office Meeting Planner’s Wealth Management MARK YOUR CALENDAR… Real Estate Close date: 3/19/15 Guide Close date: 4/23/15 Close date: 2/19/15 Close date: 2/02/15 SATURDAY, JUNE 27, AND SUNDAY, JUNE 28 DAVID BYRNE gets his inspiration from a variety of

sources. Impressed by a high-school color-guard cervantes julieta team that used his music in its performance, Mr. Byrne has enlisted 10 of the For more information, please contact Trish Henry country’s best teams to perform in CONTEMPORARY COLOR. They will be accompanied by live music from a veritable who’s-who of the indie rock world, at (212) 210-0711 or [email protected]. including St. Vincent, Tune-Yards, Nelly Furtado and Mr. Byrne himself. The shows take place at 7:30 p.m. at Barclays Center at 620 Atlantic Ave. in Brooklyn. Tickets are $25 and up, and can be purchased at barclayscenter.com.

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