TOP STORIES REPORT New York housing Last chance permits decline; first drop in more to create a than a decade biotech hub PAGE 2 ® PAGE 13 Forget the M.B.A.: Master of Science degrees grab the VOL. XXII, NO. 35 WWW.NEWYORKBUSINESS.COM AUGUST 28-SEPTEMBER 3, 2006 PRICE: $3.00 students, spotlight PAGE 3 Crain’s endorses Businesses in Andrew Cuomo for attorney general Queens face VIEWPOINT, PAGE 8 True or false? darker days City Hall dreams of the White House GREG DAVID, PAGE 9 Many still struggling jennifer chiu after blackout; they Under pressure, nightclubs pitch say officials, Con Ed their own safety Street tries shaky aren’t doing enough measures BY KIRA BINDRIM INSIDER, PAGE 10 mortgage market AND AMANDA FUNG Large firms snap up into the market. In the past three the cold stone creameryin As- BUSINESS LIVES months, Morgan Stanley, Gold- toria served its last scoop of ice lenders on the cheap; man Sachs Group and Deutsche cream on July 17—the day before LIVING IN THE OPEN Bank have each spent hundreds of the power went out in northwest- For two weeks, tennis could face big losses millions of dollars to snap up ern Queens. fanatics’ lives revolve mortgage lenders. Analysts pre- Michael DiStefano had opened around the action if housing lands hard dict that Merrill Lynch will join his branch of the popular franchise neff david in Flushing PAGE 21 the frenzy soon. on 31st Street and Ditmars Boule- ‘KISS OF DEATH’: Michael DiStefano BY AARON ELSTEIN “Everyone on Wall Street is go- vard in October. He was looking expected gains. Now he may lose his home. ing after mortgages,”says Mitchell forward to making $60,000 in July the housing market is a mess. Feldman, president of executive alone. Instead, he is now facing re- Recent statistics show that sales of recruiter A.E. Feldman Associates payment of 10 times that amount tory—ended a little over a month new homes nationwide dived 22% Inc., which places mortgage trad- to his supplier and creditors, and ago. The news crews have moved in July from year-earlier levels, and ers at brokerage firms. the possible loss of his home. on to other stories, but Mr. DiSte- applications for new home loans Investment banks see these ac- “Timing could not have been fano’s ice cream store and nearly plummeted 25%. Meanwhile, in quisitions as a way to lock up a worse,” says Mr. DiStefano, who is 1,000 other small businesses in AT DEADLINE many parts of the country, mort- steady supply of home loans that desperately looking to sell his shop. Long Island City, Astoria, Wood- gage delinquency rates are soaring. they can bundle together and sell “The blackout was the kiss of side and Sunnyside are still scram- THE WALL STREET JOURNAL Instead of heading for the exits, to investors for a hefty profit. Fur- death.” bling to recover. SAYS THE WEEKEND EDITION, some of investment banking’s big- thermore, with share prices for The nine-day power outage— For many,it’s a case of too little, approaching its first gest and smartest players are piling See STREET on Page 19the longest in New York City his- See QUEENS on Page 19 anniversary, has attracted 950 advertisers—570 of them entirely new to the paper. Some of them have also placed ads in other issues, producing $20 million in incremental B’way shows play revenue for Monday through Friday editions during the first half, Advertising Age reports today. Dow Jones Executive musical chairs Vice President L. Gordon Crovitz says that Weekend ductions can’t land a theater. Edition is on track to be Production surplus A whopping 25 hopefuls are profitable within a couple of means some lack lining up to conquer audiences this years. season, compared with 17 a year theater space ago, according to The League of IN AN EFFORT TO BEEF UP ITS American Theatres and Producers. MEN’S APPAREL BUSINESS, Seventeen musicals will vie for Lord & Taylor is mailing out BY MIRIAM KREININ SOUCCAR attention, including well-known its first men’s fashion catalog names like Mary Poppins, A Chorus in more than five years.The as broadway sets the stage for Line and Dr. Seuss’ How the Grinch book will feature only full- its biggest fall season in memory, Stole Christmas, soundly trumping See AT DEADLINE on Page 2 the Great White Way is so crowd- last year’s eight. ed with shows that many new pro- Producers are scrambling to get a piece of an industry that’s coming

35 off a record-breaking year.Even Les

5 Misérables is returning to take ad- vantage of the Broadway bonanza. “On the one hand, it’s wonder- ELECTRONIC EDITION ful,” says producer Stewart Lane, who has been trying since autumn to find a theater for his new musi- NEWSPAPER COMING SOON TO A THEATER NEAR YOU? Producers of A Chorus Line (top) and High Fidelity See B’WAY SHOWS on Page 20 (bottom left) found stages for their musicals. Princesses (bottom right) may have to debut on DVD. 71486 01068 0 AT DEADLINE Continued from Page 1 22.The $10 million musical was priced items, differentiating it written by Alain Boublil and Building downturn from the department store’s Claude-Michel Schonberg, who annual Father’s Day catalog. wrote Les Misérables and Miss slowdown in construction because The company, which Federated Saigon.To help generate City issues fewer there is less land available, and the recently sold to NDRC Equity excitement, the producers are housing permits; land that is out there continues to rise Partners for $1.2 billion, is launching the first webcam for a in price,” says Stephen Kliegerman, shipping the book to more than Broadway show which will show developers cut back executive director of development 500,000 homes. behind-the scenes action from a and marketing at Halstead Property. preview run in Chicago. Many developers are looking at THE FEDERAL AVIATION BY TOM FREDRICKSON pieces of property and deciding ADMINISTRATION says it will NOKIA HAS SIGNED UP THE NEW against building on them because the continue to limit total flights at YORK TIMES CO. and CBS Radio residential construction in numbers no longer make sense in a La Guardia Airport to 75 an as media partners as it sponsors New York City is headed for its first market where developers cannot hour but will urge carriers to use Wi-Fi rollout in 10 city parks. annual decline in more than a decade. count on further steep rises in sales larger aircraft as part of a plan to Manhattan startup WiFi Salon In the first seven months of the prices. A Halstead client Mr. reduce chronic delays.The FAA won the installation contract year, the city has issued permits to Kliegerman declined to identify re- also wants carriers to eliminate two years ago and began service developers to build 3% fewer resi- cently passed on developing a 20-unit

smaller jets it says are clogging in six areas of Central Park last dential units than in the same peri- jennifer chiu condo building in the West Village. runways.The FAA and the Port week. It put Battery Park City od of 2005, according to U.S. Cen- The units would have to sell at $2,000 Authority of New York and New online earlier this year. sus Bureau data. ago,” says Gary Barnett, president a square foot,reflecting a high-water- Jersey complain that 46% of the While the number of units in of Extell Development Corp., one mark price that may not hold. flights at La Guardia are being EXPANDING ITS LINE OF READY-TO- Brooklyn and Queens continued to of the city’s largest residential de- “It wouldn’t be impossible to at- flown on planes with 50 or fewer EAT DINNERS, FreshDirect is rise—although at a fraction of last velopers. tain those numbers, but no reason- seats. Airlines could lose some introducing a line of meals in year’s pace—the other boroughs all able investor would bank on it,” Mr. slots if they fail to comply. October with acclaimed chef recorded dips. In Manhattan, the Not since Bill Clinton Kliegerman says. Terrance Brennan of restaurants numbers slumped 13% for the peri- forecasting company McGraw- Construction costs have only ex- WARNER/CHAPPELL MUSIC INC. Picholine and Artisanal. Among od to a total of 4,986, which trans- Hill Construction anticipates that acerbated developers’ woes. In the HAS FORMED a country music the selections are boneless rack lates to 12 fewer buildings going up. the value of large apartment build- last three years, construction costs, publishing joint venture called of lamb with orzo ratatouille Many observers say the latest ing construction in the New York including labor, have risen about Biggest Picture Music. Warner and Moroccan-spiced salmon. numbers mark a major turning point City area will rise this year by 4%, 35% in New York City. An index Music Group’s lucrative Prices have not been set. after years of robust growth in resi- down steeply from last year’s 23% based on the cost for three key build- publishing arm signed the deal dential construction in the city.The jump. The company predicts a 7% ing materials—Portland cement, with songwriter and producer EQUITY OFFICE PROPERTY rising cost of land, materials and fall in the total value for next year. 2-by-4 lumber and structural Keith Stegall and music TRUST’S highest-ranking construction has made many large The last time the city saw a de- steel—has increased 9% in the city executive Alan Kates. New York executive, Senior construction projects uneconomi- cline in the number of permits issued in the last 12 months alone, accord- Vice President Don Huffner, cal—especially in the face of a soft- for residential units was in 1994,ear- ing to Engineering News-Record. THE IRISH HUSBAND-AND-WIFE will be leaving the REIT on ening in sale prices. ly in Bill Clinton’s first term of office. “Construction costs have ex- TEAM that created the Sept. 30 as it downsizes its local “The supply of condos over the By last year, the totals had increased ploded,” Mr. Barnett says. phenomenon Riverdance will operation.The company is next several years is going to be a lot by a factor of seven. produce their first Broadway eliminating the position of less than people thought six months “I think we are seeing a natural COMMENTS? [email protected] show this spring. John regional senior vice president McColgan and Moya Doherty and reducing its headcount by will bring The Pirate Queen to 360 employees. Mr. Huffner the Hilton Theatre on March joined EOP in 2000. ■ CORRECTIONS Flower power Dr. Seth Berkley of the International AIDS Vaccine Initiative was incorrectly identified in the Aug. 21 story “NY leads search for AIDS vaccine.” The story also should have noted that IAVI recently received $23.7 million from the Bill & Melinda Gates Foundation for development of Hotels splurge on bouquets to gain competitive edge an AIDS vaccine. Residential units at Echelon in Long Island City, Queens, will go on sale Sept. 14. The date was BY LISA FICKENSCHER misstated in a caption in the Aug. 21 “Neighborhood Journal.” forget the bed wars. These days, the city’s top hotels are du- THIS WEEK IN CRAIN’S eling over who has the best flowers. Floral arrangements have become the latest competitive twist as hoteliers vie for wealthy customers by strategically placing fra- IN THE MARKETS ------4 grant flora throughout the hotel—even in bathrooms—in WEEK IN REVIEW ------7 See FLOWER on Page 20

GREG DAVID ------9

THE INSIDER------10

SMALL BUSINESS ------11

REAL ESTATE DEALS------12 22 SPECIAL REPORT: TECHNOLOGY ------13

THE WEEKS AHEAD ------16 NEIGHBORHOOD

JOURNAL------17

CLASSIFIEDS ------18

BUSINESS LIVES------21 23 CORPORATE LADDER------22 BOB LAPE------23

vol. xxii, no. 35, august 28, 2006—Crain’s New York Business (issn 8756-789x) is published weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, VASE VALUE: At the Ritz-Carlton MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a Battery Park, flowers in the main copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents lobby match the color of hard copyright 2006 by Crain Communications Inc. All rights reserved. candies on the front desk. buck ennis

2 | Crain’s New York Business | August 28, 2006 A matter of M.S. degrees

lated M.S. programs. “The M.B.A. can be good at Managers pursue The expansion is already paying helping you get a job, but the M.S. practical, career- off in increased enrollment. The helps you do it, and do it well,” says number of students in NYU’s pro- Anthony Davidson, assistant dean specific credential grams has grown more than 200% of graduate programs in business at TAILOR-MADE: Denis since 1999,to 4,760 this year;CUNY NYU. It’s also cheaper: Though to move up or on Kelly got a Master conferred 21% more M.S. business costs vary from school to school, tu- of Science and now runs his firm’s sales- degrees in 2005 than it did in 2001. ition and fees for an M.S. run about tracking system. $40,000—half the tab of an M.B.A. BY SAMANTHA MARSHALL Less interest in M.B.A.’s A Master of Science can provide m.s. programs are helping schools a leg up in a highly competitive envi- when he decidedhe needed an ad- make up for decreased interest in ronment that favors workers with vanced degree to further his career, M.B.A.s, which fewer students na- well-developed skills. When Co- Denis Kelly first considered getting tionwide are pursuing. New York lumbia was devising its roster of M.S. an M.B.A. schools may be less affected because degrees, school administrators first As a midlevel manager at VF of their access to Wall Street and the surveyed employers and business Corp., a major-label apparel manu- corporate environment, but even leaders to ensure that the courses facturer, he automatically assumed their applications have been flat for would satisfy the needs of the market. that those three letters spelled instant about two years. Carl Bernadotte,a director at ex- success. But he worried that courses Enrollment at Pace’s Lubin ecutive search firm Boyden, agrees would be too general or theoretical. School of Business fell 5% in 2005 that “specialization is key these Then he discovered that New York from the previous year. Administra- days” but adds that experience will University offered a Master of Sci- tors are considering adding M.S.pro- always count more than a degree.

ence in management systems. adler arnold grams in finance, accounting, mar- Some students opt for an M.S.to “I wanted to home in on a subject keting and international business. help them switch careers. Jo Hast- and have a specific skill-set that was the pool of midcareer students. 2002 to meet rising demand. “We’re looking for ways to deliv- ings, who had worked in informa- good for my career,” he says. Mr. Institutions don’t have to spend a Columbia is adding four new er depth and quality to experienced tion technology, received her M.S. Kelly, 38, has since been put in lot of extra money to staff M.S. pro- M.S. business degree programs this managers,” says James Hall, Pace’s in Real Estate Management at charge of the company’s complex grams, but can enlist existing faculty fall, for a total of eight. New York associate dean for planning and as- NYU. She now works at a German sales tracking systems. members. Additionally, many of the University’s School of Continuing sessment. investment bank handling commer- M.B.A. programs are hardly an faculty in such programs are em- and Professional Studies,where Mr. While an M.S. degree doesn’t cial mortgage-backed securities. endangered species,but many would- ployed in the fields they’re teaching. Kelly got his degree, is increasing its necessarily compete with an Ms. Hastings had considered an be candidates are opting for M.S. de- M.S.degree offerings to 14 this year, M.B.A., the targeted curricula is M.B.A., but says she was afraid of grees in business specialties. In re- Schools adding programs from fewer than seven in 2000. more appealing to those who are getting lost in stacks of “stale sponse, more schools are tailoring “this is a smart,strategic move for Fordham University’s Graduate somewhat established in their ca- books.” During a real estate boom, their advanced degree programs and universities and for the metro job School of Business has introduced reers. Because many courses can be “you need to be close to the market,” adding new ones. Administrators say market,” says a spokesman for the three such programs in the past five taken in the evenings or online,pro- she says.“The M.S.degree let me hit the range of M.S. subjects, from fi- Columbia University’s School of years. Pace University and the City grams let students stay in their jobs the ground running.” nance and media management to Continuing Education, which es- University of New York are both and apply what they learn the next construction planning, is expanding tablished its master’s programs in considering additional business-re- day at work. COMMENTS? [email protected]

BY THE NUMBERS Cuomo’s lead vulnerable WOMEN STORM IVIED HALLS in the city and its suburbs. “You’re women will outnumber men when thousands of students file onto A good turnout going to get the rock-ribbed vot- New York City’s college campuses this month. Among nine of the city’s lead- among NYC voters ers,” he says, “and that makes the ing independent universities, only Cooper Union and Polytechnic consistent- nine downstate counties over- ly fill their classrooms with more men than women. The ratio of female to could lift Green in whelmingly important.” male students at each school has been consistent for the past several years. Two contentious Congressional AG primary race races in Brooklyn and a heated As- sembly battle on the Lower East WOMEN MEN BY ANNE MICHAUD Side should boost downstate COLUMBIA UNIVERSITY 12,387 12,016

bloomberg newsbloomberg turnout beyond 60% of the state’s 51% 49% former federal Housing Secre- AWAITING VERDICT: The AG race is still open total. Heavy city turnout will favor tary Andrew Cuomo boasts every for Andrew Cuomo (left) and Mark Green. Mr. Green. THE COOPER UNION 1 336 611 advantage in the Democratic race 35% 65% for attorney general: four times the Low interest among Hispanics money of his closest competitor, a vote. Mr. Cuomo has failed to win the former public advocate will FORDHAM UNIVERSITY 2 8,887 5,777 double-digit lead in the polls and the loyalty that is propelling guber- also benefit from low interest 61% 39% endorsements from most party natorial candidate Eliot Spitzer to among Hispanic voters, expected leaders, including those who an easy victory. because there are no Hispanics on THE NEW SCHOOL 5,828 2,867 shunned him four years ago when “I wouldn’t write this race off the ballot for statewide offices.The 67% 33% he ran for governor. and say Andrew Cuomo has it low turnout also will help because NEW YORK UNIVERSITY Yet political experts insist that locked up, or Mark Green,” says scars remain from the 2001 may- 23,590 16,414 rival Mark Green, the city’s former Steven Greenberg, a longtime oral primary, when Mr. Green de- 59% 41% public advocate, could still pull off Democratic operative. feated Fernando Ferrer. PACE UNIVERSITY 8,506 5,671 an upset in the Sept. 12 primary. Voters have yet to focus on the In addition, Mr. Green has run 60% 40% race, observers say, which is ironic. a frugal campaign and is allocating Polls can be inaccurate The attorney general’s job has much of his $1.3 million in cam- POLYTECHNIC UNIVERSITY 581 2,220 while mr. green is as many as 18 grown in reach and profile during paign cash for ads in the final two 21% 79% points behind in the voter surveys, the eight years that Mr. Spitzer has weeks. Mr. Green notes that Mr. polls are notoriously inaccurate held and redefined it. Every attor- Cuomo has already fired some big PRATT INSTITUTE 3,205 2,032 when turnout is low,and the expec- ney general candidate, including advertising guns without widening 61% 39% tation this year is that fewer than the Republican, Jeanine Pirro, is his lead. ST. JOHN’S UNIVERSITY 12,217 8,129 700,000 will vote. vowing to follow in his footsteps. “Mark Green could beat An- What’s more, half of likely pri- The key will be which voters drew Cuomo,” says Quinnipiac 60% 40% mary voters told the Quinnipiac make it to the voting booths. Vet- poll director Maurice “Mickey” Enrollment figures are for fall 2005. 1-Figures do not include graduate students. 2-Figures do not include students in study-abroad programs or students in the Graduate School of Education’s program with the United Federation of University poll that they may eran political consultant Norman Carroll. “Green is a tough guy and Teachers.

change their allegiance before they Adler expects the highest turnout See CUOMO on Page 20 istockphotos

August 28, 2006 | Crain’s New York Business | 3 IN THE MARKETS ➡ HIGHLIGHTS REEL ➡

WEEKLY MOVES As cable biz grows up,

The Bloomberg/Crain’s New York Index fell 1.0% Viacom slows down to end the week at 320. -1.0% -0.6% The S&P 500 Index fell BLOOMBERG/ S&P CRAIN’S 500 Viacom acquired earlier this year for 0.6%, closing at 1295. NY INDEX INDEX MTV owner faces $1.5 billion—are not sustainable. Internet competition; The big problem for the compa- RISERS SINKERS ny lies in its vast cable operations, which also include VH1 and Com- PERCENT CLOSING PERCENT CLOSING DreamWorks gains CHANGE PRICE CHANGE PRICE edy Central. Together, those units Martha Stewart +6.3% $18.61 Sotheby’s -14.5% $26.95 generate two-thirds of Viacom’s BY TOM FREDRICKSON Travelzoo +5.6% $32.96 Nasdaq -8.5% $26.97 revenues, but the cable industry is under increasing threat as advertis- CBS +3.4% $28.45 Lazard -8.1% $36.95 ast week, Viacom ers shift more spending to the Inter- MasterCard +2.9% $55.00 Aéropostale -8.0% $23.91 Chairman Sumner Red- net. Viacom’s overall cable revenues stone sacked fast-falling are growing at a 6% clip, according superstar Tom Cruise. to David Miller, an analyst with PAST & FUTURE Given the disappoint- Sanders Morris Harris. Ling performance turned in by Via- “This was supposed to be a There are four months left in 2006, but already it’s been a very com’s shares, maybe Mr. Redstone growth story out of the gate,” he

good year for Evercore Partners, the boutique investment bank. should also have ousted SpongeBob jennifer chiu says. “But 6% is more what you ex- The firm had a successful IPO earlier this month thanks to its business of SquarePants, the star of what has pect from a mature company like advising on big deals, such as Cendant’s $4 billion sale of its travel division become the weakest part of Mr. ture industry. In addition, Mr. Red- Disney.” He notes that until recent- last week. Evercore’s shares are up 25% to date. Redstone’s media empire, its cable stone’s action last week, which ly, cable advertising was growing at networks. reached over not one but two exec- a double-digit pace. In a nutshell, Reader’s Digest has problems. Last week, less Due largely to soft cable adver- utives who supposedly run the show Weak upfront ad sales for the than a month after the company announced a 9% gain in tising, Viacom’s stock price has slid at Viacom,hints at significant man- season beginning next month—up quarterly earnings—well below analysts’ estimates—its shares sank to 52- 36% in the nine months since the agement disarray. only 1%—could put enormous pres- week lows. The shares have fallen 22% in the last 12 months. Write-downs in supposedly fast-growing owner of sure on Viacom to deliver gang- Acquisition pays off the book-fair unit, ironically called “Books Are Fun,” were the main culprit. MTV and Paramount Studios— buster results in its 2007 spot-mar- among other properties—split with analysts predict that revenues ket ad sales. Hain Celestial’s efforts to brew up more sales overseas are CBS. On Friday, Viacom’s shares will increase by 12% this year, to The balance of Viacom’s rev- yielding results. In June, the natural foods company acquired the closed at $36.36. Embarrassingly, $10.8 billion from $9.6 billion in enues flow from the company’s en- CBS, the old-fashioned TV and ra- 2005 (adjusted for the split). Mean- tertainment division, which in- English vegetarian food brand named after Linda McCartney, the late wife of dio part of the business, has handily while, net income is expected to rise cludes Dreamworks, Paramount Beatle Paul. The deal is expected to add to earnings as soon as next year. outperformed its former partner. 14%, to $1.98 per share from $1.73 —and a once-lucrative relationship Next week, the company is expected to post quarterly earnings of 24 cents Investors would be wise to leave per share last year. Many investors with Tom Cruise. compared with a loss a year ago. At closing, shares were up less than 1%. the theater and cash in their Viacom fear the gains—driven partly by shares. Cable is a fine but now ma- DreamWorks,the movie studio that COMMENTS? [email protected]

CRAIN’S ONLINE POLL DID VIACOM MAKE THE RIGHT MOVE IN CUTTING TIES WITH TOM CRUISE? VIACOM CHAIRMAN SUMNER REDSTONE announced last week that Paramount Studios was ending its 14-year relationship with Tom Cruise. Most of the 543 respondents to a NewYorkBusiness.com poll agree with the decision, saying the actor’s ranting is damaging the company. Only about a sixth of respondents think Mr. Redstone was wrong.

No, he’s a great .17% actor and makes a lot of money for the Yes, his personal studio behavior is hurting his and Paramount’s 83%. reputations

“Hollywood today is about business. There’s no CEO or other business leader whose behavior would be tolerated if it were like Tom’s. Tom has hurt his brand, and Viacom needs to protect theirs.” —CAROLE STOVALL “Cruise will prove to be a long-term asset to the film industry. He will stay a solid draw for the public at the box office. Could this just be hype?”—DAVE LE BLANG

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

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Lao expanding dumpling empire estaurateur Kenny Lao (left) is halfway toward Good for Good for Good for raising the $3 million he needs to open six more one hour one day one night RRickshaw Dumpling Bars in the city next year. Mr. Lao, 29, has collected $1.5 million from many of his current investors, including Michael Bonadies, a partner in Myriad Restaurant Group and Mr. Lao’s former boss at Myriad’s Nobu and Tribeca Grill. His popular fast-food eatery in Chelsea, known for its chocolate-and-chicken Thai basil dumplings, opened just 18 months ago and has already garnered high-profile fans. Martha Stewart’s reality show taped a segment at the storefront last year. “We are trying to be the leader of the fast, casual Asian Good for Good for GOOD restaurants,” says Mr. Lao, who was named one of Inc. one week six months ALL YEAR! magazine’s top 30 under 30 entrepreneurs for 2006. Executive chef Anita Lo will oversee the training and menu at the new spots. ISSUE DATE: DECEMBER 25 could be swapping war stories at a Performing as a pop idol or as AD CLOSE: DECEMBER 1 (early close) Newsroom drama more mainstream venue. Outback an actor in movies, meanwhile, “is fails to rivet Steakhouse, Uncle Jack’s like a series of one-night stands,” CALL 212-210-0259 TO RESERVE YOUR AD SPACE. Steakhouse, the hunky Usher tabloid wars may have gotten Fleming’s and adds. He should decent reviews when it launched Legal Seafood are OLÉ OLÉ know, having made this summer, but the reality show all in discussions to WXTV, Univision’s Span- a series of platinum- about the tribulations of Daily rent an 11,700- ish language station, selling albums full News staffers, including former square-foot space swept the summer of songs about his editor in chief Michael Cooke, was beneath the Nielsen ratings from busy love life. so poorly received by viewers that Marriott extension 7 p.m. to 8 p.m. in the Success on the Bravo refused to release Nielsen being built by Muss important 18- to 49-year- Great White Way ratings. Clearly, the show is not Development. old demographic—a first will prove to destined to see the light of Brooklyn in the market. Telenovela everyone that he is a another season. Borough President Heridas de Amor beat triple threat as a The numbers aren’t that hard Marty Markowitz even WABC’s perennial singer, dancer and to get, so here they are: A paltry votes for Legal favorites Jeopardy! and actor, he says. “I 240,000 people tuned in for the Seafood, a Boston- Wheel of Fortune in the think this is going Long established debut on May 30. By the final based chain. “I’ve money demographic. to better me as an episode on Aug. 21, viewership been pitching it for artist,” says the commitment had plunged to 107,000. years to come to 27-year-old. “That’s barely a heartbeat,” Brooklyn,” he says. Weiser LLP sneered a competing cable “So far, they have rebuffed me.” Certified Public Accountants network executive. A cable It won’t be his call. Prudential Burning off channel hit like TNT’s The Closer, Douglas Elliman is marketing the by contrast, draws more than retail space. Sources say that if a the jet lag 5 million viewers. deal cannot be reached for an hyatt hotels and resorts has Tabloid Wars likely eatery, the property will probably worked out a new way to attract to the did little to help the be rented to one of the many banks guests. Today the chain will New York City New York News in its circulation clamoring for the lease. announce a promotion that 135 West 50th Street New York, NY 10020 business community war with the New York includes 24/7 access to its gyms. Tel 212.812.7000 Post, as management As part of the program, which Fax 212.375.6888 For nearly a century,Weiser has provided was as mum as its Better buzz it calls “Stay Fit,” the lodging Long Island accounting, tax, and consulting services, such Bravo executive for live act group is upgrading workout 3000 Marcus Avenue as state and local tax planning, internal audit counterparts on any equipment, providing chilled Lake Success, NY 11042 outsourcing, and business restructuring, circulation boost. “At when r&b crooner towels to sweaty guests and Tel 516.488.1200 to private clients and business enterprises, this time, it’s too early Usher (left) took to the offering GPS devices to runners Fax 516.488.1238 including closely-held and emerging entities, to comment on silver screen last year in who split from the property and Westchester in a variety of industries including: numbers,” News Chief the Mafia flick In the need to find their way back. 660 White Plains Road Executive Marc Kramer Mix, critics panned his The Grand Hyatt New York • Real estate Suite 430 said in an e-mail. performance. just sank $750,000 into Tarrytown, NY 10591 • Manufacturing and distribution What a difference a live expanding its gym and buying Tel 914.333.0555 • Auto dealerships appearance makes. The new machines. It’s been testing Fax 914.333.0556 • Media and communication heartthrob’s Broadway debut the program for a few months. • Banking Brooklyn gets New Jersey as flashy lawyer Billy Flynn in General manager Jerry Gibson 399 Thornall Street • Food and dairy food fight Edison, NJ 08837 • Health care the musical Chicago garnered reports that the night owls are Tel 732.549.2800 • Financial services downtown Brooklyn’s rave reviews last week. mostly travelers from abroad with Fax 732.549.2898 • Professional services hard-drinking, meat-eating The Grammy winner says evening check-ins. “They arrive lawyers have for decades retired that working on Broadway is from the airport and work out www.weiserLLP.com • Not-for-Profit to beer-soaked bars and greasy “like being in a monogamous from 2 a.m. to 5 a.m.,” he says. For more information, contact Douglas Phillips at 212.375.6701. spoons after battling before relationship—you have to An advertising campaign the borough’s notorious dedicate all your time and promoting the program will kick ■ judges. Soon the counselors gettypatience images to getting it right.” off Sept. 1.

6 | Crain’s New York Business | August 28, 2006 WEEK IN REVIEW

city contracts in return for ECONOMIC SPOTLIGHT kickbacks. Firm sued over investment scam federal regulators sued One Wall Street Inc. for allegedly selling $1.6 million in fraudulent investments to 64 investors, many of them elderly.The firm is accused of falsely promising that it would conduct an initial public offering and that it would merge with E*Trade Financial Corp. GE vice chairman named VNU chief vnu, which owns Billboard magazine and Nielsen Media Research, named General Electric Vice Chairman Richard Calhoun its first new chief executive since Quattrone back on Wall Street the firm was taken private last FORMER CREDIT SUISSE FIRST BOSTON banker FRANK month. QUATTRONE (above), whose obstruction-of-justice conviction was overturned earlier this year, reached a deal with Law firms to merge Economy Watch prosecutors that lets him avoid a third trial and immediately cooley godward, a Palo Alto, NYC added 7,000 jobs in July despite an uptick in the jobless rate. It remains return to Wall Street. If he stays out of legal trouble for a Calif., technology law firm, plans on track to add nearly 100,000 jobs in 2006. Inflation moderated in July. to merge with Manhattan year, all charges against him will be dropped and CSFB will litigation specialist Kronish Lieb JUNE ’06 JULY ’06 COMPARISON have to pony up as much as $120 million in back pay. Weiner & Hellman.The NYC jobless rate 5.1% 5.7% 4.8%1 combined firm will have 555 NYC employment change +5,400 +7,000 +57,9002 gettyimages lawyers, with 110 attorneys based NY area inflation change +0.5% +0.2% +5.0%3 in New York City. AOL shake-up network monitoring and analysis 1-U.S. unemployment rate. 2-Change since December 2005. 3-Inflation rate for the latest services.The deal marks IBM’s 12-month period. after data leak third acquisition in a month. Gore book reissue aol’s chief technology officer, rodale books, the publisher of NYC Hotel Stats Broadway Stats Maureen Govern, resigned from former Vice President Al Gore’s the Time Warner Inc. division Rohatyn joining best-selling book on global Occupancy for the first six half of ’06, Attendance and gross fell in the week weeks after the company warming, An Inconvenient Truth, at 84.7%, was 1 percentage point ended 8/20, hitting their lowest lev- accidentally released Internet Lehman Brothers will reissue his 1992 best seller, above the figure for the same period els since early March, The League search data for 650,000 veteran investment banker Earth in the Balance, on Oct. 31. in ’05, PKF Consulting data show. of American Theatres and Producers subscribers. AOL fired two other Felix Rohatyn, who helped saved The first-half room rate averaged says. For the season to date, atten- employees and named a task force New York City from bankruptcy $220.76, vs. $247.01 in first-half ’05. dance is down 6%; gross is up 5%. to review its privacy policies. as head of the state’s Municipal Icahn takes seat Assistance Corp. in the 1970s, will join Lehman Brothers Holdings on ImClone board Retail deals Inc. as a senior adviser. billionaire financier Carl aether holdings inc. agreed to Icahn accepted a seat on ImClone pay $51.5 million in cash and Systems Inc.’s board, which stock for The Deutsche to Jersey already has one Icahn Athlete’s Foot. deutsche bank plans to relocate representative.The biotech firm … Iconix up to 1,200 employees to Jersey also approved two seats for Brand Group City from Manhattan over the candidates chosen by Mr. Icahn, Inc. agreed to next two years.The bank signed a giving the investor a total of four buy London lease that expands its offices at the out of 12 directors. Fog from Harborside Financial Center to bankrupt London Fog Group Inc. 228,000 square feet from 90,000 for $37.5 million square feet. Champion, Cuomo to join GMA Capital IQ’s Weekly Deals Report Warnaco pressure Lee Equity opens next month, veteran WABC manhattan investment firm thomas h. lee, who left Boston- weatherman Sam Champion TRANSACTION SIZE COMPANY (in millions) BUYER/INVESTOR TRANSACTION TYPE Barington Group, a 5.6% stake- based Thomas H. Lee Partners in (below) is moving to Good holder in Warnaco Group Inc., March, launched his long- Morning America, succeeding General Maritime Corp. $154.4 Bergesen Worldwide Group SB M&A Manhattan urged the apparel maker to anticipated Manhattan firm, Lee Tony Perkins. No replacement was consider selling itself after Equity Partners. He also hired named for Mr. New York Fasteners Corp. $68.0 B/E Aerospace Inc. SB M&A Paramus, N.J. Warnaco’s stock lost a third of its seven executives, including three Champion, Impac Logistic Services $42.5 Integrated Distribution SB M&A value this year (Crain’s, Aug. 21). from Bain Capital. who has been Secaucus, N.J. Services Group Ltd. Phillips-Van Heusen Corp. could with WABC OnlineBenefits Inc. $32.5 A.D.A.M. Inc. SB M&A emerge as a buyer. since 1988. Uniondale, L.I. Labor investigation Primetime co- Loring Ward (NY) Inc. $5.2 Not disclosed SB M&A new york city Central Labor anchor Chris Manhattan IBM to pay $1.3B Council President Brian Cuomo will ROO Group Inc. $4.7 Accredited investors GCI McLaughlin was granted a six- also join GMA Manhattan for security firm month paid leave of absence, as a news Selected deals announced during the week of Aug. 13 for companies headquartered in metro New

international business starting Sept. 1. Mr. McLaughlin, reader on world photos wide York. GCI: Growth capital investment represents new money invested in a company for a minor- / ity stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of exist- Machines Corp. will pay who is also a Queens Sept. 5. ap ing shares of a company without the participation of a financial buyer. $1.3 billion for Internet Security Assemblyman, is under —from staff reports and jennifer chiu Systems Inc., which performs investigation for allegedly steering bloomberg news reports

August 28, 2006 | Crain’s New York Business | 7 VIEWPOINT Cuomo for attorney general editor in chief Rance Crain vice president, publisher Alair Townsend ll four democratic candidates for at- as an aide in the Clinton White House. Hopefully, he will torney general vow that if elected, they will run again for public office. EDITORIAL editor Greg David build on the accomplishments of Eliot Mark Green, the candidate closest to Mr. Cuomo in the managing editor Richard Barbieri Spitzer.The agenda of Andrew Cuomo, polls, bills himself as the “people’s lawyer,’’ drawing on his projects editor Cynthia Rigg former secretary of the U.S. Department of deputy managing editors Valerie Block, experience as New York City’s consumer affairs commission- Erik Ipsen Housing and Urban Development, offers er.This isn’t the best set of priorities today, and Mr. Green senior reporters Aaron Elstein, the most promise for improving New York. has often been reflexively antibusiness in the past.The fourth Lisa Fickenscher, Matthew Flamm, Tom Fredrickson, Samantha Marshall, Crain’s endorses him in the Sept. 12 Democratic primary. candidate, Charlie King, has emphasized a counterproduc- Anne Michaud, Miriam Kreinin Souccar Following Mr. Spitzer will be the political equivalent of tive plan to launch criminal investigations of public school reporters Barbara Benson, Elisabeth Butler, A Erik Engquist, Amanda Fung, Julie Satow, succeeding Joe Torre as manager of the Yankees.The attor- failures; he also has demonized insurers as the health care sys- Gale Scott ney general’s investigations of Wall Street and the mutual tem’s biggest problem, restaurant critic Bob Lape fund, insurance and radio industries, aimed at the simple which is not the case. art director Steven Krupinski deputy art directors Carolyn McClain, goal of ensuring fairness for consumers, have forced impor- His grasp of state In some ways, it re- Daniel Mednick tant change.The public acclaim for his efforts is evident, quires an act of faith to staff photographer Buck Ennis government hints copy desk chief Wendy Zuckerman inasmuch as his gubernatorial victory is all but certain. support Mr. Cuomo. copy editors Michele Arboit, Leslie Jay, Mr. Spitzer’s broad agenda as attorney general—which he that he’s matured His tenure at HUD was Thaddeus Rutkowski says he was required to adopt because of indifference in Wash- controversial: He ac- research editor Denise Southwood since HUD associate research editor ington—meant that he paid too little attention to the affairs complished much, but Adrianne Pasquarelli of New York state, especially the corrupt political culture in his record was clouded www.NewYorkBusiness.com online editor Catherine Tymkiw Albany and the vast sums wasted on Medicaid fraud and by his obsessive con- online reporter David Jones abuse. Mr. Cuomo promises to focus on those issues. cern with taking credit EDITORIAL AND ADVERTISING OFFICES He would use the Tweed Law, named after the famous for what he did. In addition, the support he has drawn from 711 Third Ave., New York, NY 10017-5806 Tammany Hall boss, to attack the status quo in Albany— the Democratic establishment and labor unions could editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0259 where power is concentrated with the governor and the undermine his promises to crusade against the status quo if Cable craincom nyk leaders of the two legislative houses, all of whom have elected. In particular, he was endorsed early in the campaign Fax 212.210.0499 Entire contents ©copyright 2006 Crain become almost completely beholden to special interests. Mr. by health care workers union 1199 SEIU, one of the most Communications Inc. All rights reserved. Cuomo pledges audits and prosecutions to combat Medicaid powerful special interest groups in the state and the biggest ®CityBusiness is a registered trademark of MCP Inc., used under license agreement. fraud, which, according to some estimates, costs more than beneficiary of Albany’s dysfunctional ways. $10 billion a year. Both efforts are desperately needed. However, Mr. Cuomo’s campaign shows an understand- TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. One of Mr. Cuomo’s rivals, Sean Patrick Maloney, has a ing of state government that suggests he has matured. He $3.00 a copy, $59.79 one year, $109.79 two years. similar platform. He is an appealing candidate, but at the promises to be independent of his suspect supporters. He is www.NewYorkBusiness.com moment, his government experience consists of a few years the best candidate in the Democratic primary. ADVERTISING AND MARKETING advertising director Vanessa Cognard business development manager Robert N. Grossman account executives LETTERS TO THE EDITOR Andrew Carlin, Holly A. McKeown, Derek Reese, Jennifer Siniscalchi, William E. Squitieri, Brigitte Stieglitz western account manager Ellen Mazen (Los Angeles) 323.370.2477 classified sales manager John Gallagher New York needs more power newsletter product manager Catherine Evans Gittens sales coordinators Lulé Haznedari, POWER CRISIS: while protecting LIC IS JUST offices at 27-01 Queens Plaza Anita Perrino CITY IS ON IT consumers’ interests. GETTING GOOD North as “far from the area’s credit Pat Grondziak 313.446.6082 the bloomberg administration is The admin- the aug. 21 article commercial and transportation marketing director MJ Snyder aggressively working to make sure istration recog- “MetLife quitting core” is also erroneous. marketing assistant Jill H. Bottomley New York City is prepared to meet nizes the importance Queens?” fails to gayle baron circulation director Richard Price its energy needs—now and in the of removing note that Long Executive director internet director Marc Minardo future (“A power crisis is being barriers to building Island City is in Long Island City BID NEW YORK PRODUCTION ignored,” Aug 14). plants, but we must METLIFE is considering a move. the midst of a production and pre-press director There is no debate that the city also find other ways renaissance and is YOU CAN GET Michael Corsi will need additional sources of to meet future experiencing THERE FROM HERE advertising production manager energy in the near future.That is demand.The city is supporting unprecedented development of Suzanne Fleischman Wies why the administration has the construction of a Con Edison both residential and commercial the aug. 21 article on MetLife PUBLISHED BY CRAIN COMMUNICATIONS INC. consistently championed transmission line that will space.The Long Island City BID claims that there is no direct chairman Keith E. Crain developing more sources of bring an additional 300 mega- has tracked more than 1 million subway access to the building. president Rance Crain capacity—as evidenced by our watts from upstate; working with square feet of Class A office space But there are six subway lines secretary Merrilee Crain support for three new power plants the New York Power Authority to and 2,400 residential units under intersecting at Queens Plaza with treasurer Mary Kay Crain that were built in appropriate procure 500 megawatts of new construction in the neighborhood, service to Manhattan, Queens executive vp, operations William Morrow industrial zones within the city. in-city capacity to replace the which will soon be home to the and Brooklyn. Only a tiny senior vp, group publisher Gloria Scoby The administration has Poletti power plant in Queens; United Nations Federal Credit number of locations in the city group vp, technology, circulation, consistently urged Albany to pass and supporting demand- Union, the New York Blood have such superior subway and manufacturing Robert C. Adams the power plant-siting law, which reduction efforts that are ex- Center, a Citibank expansion, and bus service. vice president/production & manufacturing David Kamis will expedite permitting.The pected to save up to 675 others. As for cost, is the management corporate circulation director mayor’s Energy Policy Task Force megawatts of decreased load Five large commercial or of MetLife ready to take the drain Patrick Sheposh has been working with industry growth over the next three to five mixed-use projects totaling over on their bottom line and abandon stakeholders to create a market years. 7 million square feet are planned, an area that is being upgraded founder G.D. Crain Jr. (1885-1973) structure and regulatory climate gil quiniones as are countless smaller, residential with quality buildings and stores? chairman Mrs. G.D. Crain Jr. (1911-1996) that will give developers the Chairman developments. alan j. levy revenue certainty they need Mayor’s Energy Policy Task Force The depiction of MetLife’s Bel-Site Realty Corp.

8 | Crain’s New York Business | August 28, 2006 How do you show your passion for the NFL? Wedoit in High Definition. john h.john howard

We know you love football—which is why, as a Time Warner Cable customer, you’ll enjoy a ton of NFL games City Hall dreams this season, many available in High Definition. That includes your home-team games, whether played at home or away, as well as many other NFL games. Visit www.timewarnercable.com/yourNFL to learn about all of White House of our great sports programming. Then get your face paint and nachos ready, because football season is coming to Time Warner Cable. ayor michael bloomberg tried again last week to convince everyone he doesn’t plan to run for president. He was at his exasperated best while visiting Ireland, saying he didn’t ©2006 Time Warner Cable. NFL is a registered trademark of the National Football League. Subject to local NFL blackout rules. CAM.0806.007-NFL_crb know how many times he had to repeat his Mmantra—that he would finish his term and then retire to give away his billions—before the press believed him. I believe him. But the speculation is also his own fault.

Bloombergologists legislation and (crossing say that Deputy Mayor party lines) with Chica- Daniel Doctoroff ’s re- go’s Richard Daley to sponsibilities have bal- urge mayoral control of looned so much that urban schools have a there is nothing left for similar rationale: Emu- anyone else to do. The late what already works. three most politically The same thinking un- oriented deputy may- derlies his decision to ors—strategist Kevin donate $125 million Sheekey, former press for antismoking efforts chief Ed Skyler and around the world:Tough longtime aide-de-camp city rules have licked the Patricia Harris—fill the problem here; it’s time void by fantasizing to help someone else. about running a presi- The mayor’s success- dential campaign. GREG es make such thinking The trio has a strong DAVID possible.The economy is incentive to do so: mon- booming, and the city’s ey. The mayor paid Mr. tax coffers are overflow- Sheekey at least $263,000 for a year’s ing. His development policies have work on the re-election campaign, laid the groundwork for the creation and then handed him a $400,000 of neighborhoods in Manhattan and bonus. Ms. Harris received a Brooklyn; all that’s left is dotting the $350,000 bonus for less than four i’s and crossing the t’s.Even occasion- months on the campaign team.Ima- al crises,such as the Queens blackout, gine what Mayor Bountiful would fade from the headlines quickly. pay a presidential campaign team. Of course, there is so much more A prerequisite for any presidential that could be done in the three re- race is a national image, so the trio is maining years of his administration. working to raise the mayor’s profile. The mayor could work for the kind Earlier this year,they called a nation- of real reform in the teachers’ con- al summit of mayors to demand that tract that has thus far eluded him. Congress pass stronger gun laws. He could try to curb costly union This was portrayed as the next contracts and pension plans that step in the city’s war on crime. It’s make the city’s future prospects so true that Giuliani-Bloomberg strate- scary to those who study the num- gies for reducing crime have worked bers. He could even cut taxes to re- so well—making New York the duce the nation’s heaviest burden on safest big city in America by far— residents and businesses. that further declines involve stopping Such steps are difficult in times of the flow of guns into the city. That crisis, even more so in times of plen- requires change in Washington. ty.So why be mired in long shots that Mr. Bloomberg’s decisions to link promise mostly frustration? Nation- up with Florida Gov. Jeb Bush to ar- al issues are more fun, get more gue for an overhaul in federal school headlines and keep everyone busy.

August 28, 2006 | Crain’s New York Business | 9 activist governor if Eliot Spitzer wins in November. The plan has been dubbed the CLUBS STRIKE BACK Shoring up safety Million Man Study, because it is AS POLITICIANS RUSH TO PASS LAWS imposing more regulations on THE INSIDER based on the idea that the city’s nightclubs, the besieged New York Nightlife Association is offering some of its by Erik Engquist and Anne Michaud population will grow to 9 million own ideas to improve safety. from 8 million by 2026.Traffic, Last week, Mayor Michael Bloomberg signed legislation allowing the city housing, open space and electricity to shut down nightclubs that fail to conduct security checks on their supply are among the issues being employees. Looming next month is a summit called by City Council Speaker considered, under the direction of Christine Quinn on safety at the clubs, a forum certain to focus on industry- Struggle to marshal Deputy Mayor Daniel Doctoroff. bashing. The mayor announced the The nightlife association says it supports MetLife forces project in January, but another many of the proposals suggested by its insider says work is proceeding so critics, including requiring all establishments ueens Borough President slowly that the initiative won’t be to use high-tech scanners to ferret out fake Helen Marshall (left) is finished until the end of the year at IDs. In addition, it will recommend that the the earliest. getting the runaround from police arrest young people who use fake Q identification to get into clubs and bars to Metropolitan Life Insur- September session drink. The group also wants to improve ance Co. as she tries to keep the security by getting permission to hire off-duty company from moving as many as slated for Senate police officers, in much the same way that 1,700 workers out of Long Island the state senate has scheduled a sports teams arrange for police security. City. special session Sept. 15 to confirm The association opposes mandates that security cameras be installed at all club MetLife is negotiating to lease as much as 700,000 square Judge Eugene Pigott,Gov.George Pataki’s nominee to fill an upcoming entrances and exits, saying that they are too feet of space at 1 Bryant Park, a pricey office tower being vacancy on the Court of Appeals, a costly, as well as ineffective in deterring refurbished at 1095 Sixth Ave.The company won’t comment, Senate spokesman says. crime. but those close to the negotiations say the deal will involve The chamber is also likely to istockphotos transferring most of MetLife’s Queens employees to take up Timothy’s Law, which would create parity in health care ran unsuccessfully for state school, but forgot to forward the Manhattan. coverage for mental illness.The comptroller in 2002. paperwork to Oberlin.That wasn’t Assembly and the Senate agreed on Mr. Mulrow is one of Mr. true, either. Hours later, Ms. Clarke A spokesman for Ms. Marshall he returns after Labor Day. compromise language just before Spitzer’s close campaign advisers, acknowledged that she was still two says she called MetLife Chief the Legislature’s summer break but and sources wonder if he might be classes short.Then word leaked Executive Robert Henrikson last did not have time to vote. named budget director. Judith Enck, that she had failed one makeup Monday but was told he was out of Mike vs. Eliot: Mr. Spitzer’s environmental adviser course and dropped another. the country.“They told her she and a former associate with the Ms. Clarke blamed a faulty could talk with some assistant It’s 1 million to 1 Spitzer appointee New York Public Interest Research memory. instead, but she told them she one insider says Mayor Michael Group, might be a good fit as would only speak to him,” the Bloomberg’s effort to create a name-dropping commissioner of the Department spokesman says. strategic plan for the city has been names continue to surface of of Environmental Conservation. Food-waste test A MetLife spokesman given new urgency by the potential appointees should Eliot Dr. Jon Cohen, who is advising confirms that Mr. Henrikson is gubernatorial campaign, amid fears Spitzer be elected governor. One is Mr. Spitzer on health policy, may be scrapped out of the country and will speak that the Bloomberg administration William Mulrow, a Westchester Dem- resigned as chief medical officer of a pilot project to test the with the borough president when will be confronted with a more ocrat and investment banker who the North Shore-Long Island viability of food-waste disposals in Jewish Health System, effective at restaurants is being postponed. the end of the year. It is widely Meanwhile, the city will hire a STAY IN HIS T O RIC L U X U R Y believed that he will be the next consultant to study whether the health commissioner if Mr. Spitzer pilot is a good idea.That will wins. delay the project for more than 1890 - 1900 - 1910 - 1920 - 1930 - 1940 - 1950 - 1960 - 1970 - 1980 - 1990 - 2006 a year and may even kill it, sources say. Clarke fumbles Businesses, which now must pay carters to haul away organic diploma diplomacy waste, would prefer to install yvette clarke’s bid for Congress disposals. But the city says disposals seemed to be picking up momen- produce pulpy material that’s hard tum early last week when it was to process. suddenly overtaken by Diploma- City Council members who gate. The Crain’s Insider reported on favor a pilot found the Bloomberg Wednesday administration unwilling to budge that the city and decided that arranging a study councilwoman was the best they could do. from Brooklyn (left), whose Web site says Recycling targets, On April 10, 1916, the PGA of America was she was an founded at New York’s Historic Martinique Hotel. honor student one more time who went to a consultant is wrapping up a On April 10, 2006, the new Radisson Martinique proudly Oberlin College one-year study of the garbage accommodated the guests and members of the PGA of gettyimages on a collected by the Department of Sanitation America as they celebrated their 90th Anniversary. scholarship, had not earned a .The city will use the data degree.The report triggered several to set new recycling targets.The 530 luxurious guest rooms and suites and days of embarrassing newspaper old targets were never met, and coverage and blog discussion. when environmental groups 20,000 square feet of flexible meeting space Ms. Clarke’s attempts to dragged the city into court, a judge minimize the damage only made ruled that the goals were things worse. unrealistic. Insiders expect another A campaign spokesman initially battle over what the new ones told The Insider that 41-year-old should be. Ms. Clarke graduated in 1986, a The city argues that recycling claim the candidate herself had targets should be calculated as a made in a sworn statement to the percentage of the overall waste Campaign Finance Board last year. stream, not based on tonnage, as 49 West 32ND Street, New York, NY 10001 Then Ms. Clarke said she had they are now. But it needed the Telephone (212) 736-3800 Fax (212) 277-2703 left Oberlin several credits short study to calculate its recycling rate. www.radisson.com/martinique and later passed the necessary The final report should be ready in makeup courses at a Brooklyn October. ■

10 | Crain’s New York Business | August 28, 2006 SMALL BUSINESS

and cloth bags—not disposable plastic—and doesn’t package it with Two cleaners try to reinvent the game twist ties or paper sleeves. “I want to get everyone used to a garment bag instead of 50 million

$120,000 CO2 cleaning machine, of the Manhattan-based National that will feature drop-off kiosks. plastic bags,” Mr. Kistner says. Startups innovate and will be rebranded Green Apple Cleaners Association, describes the “I think the convenience really Whether online ordering and en- with online service; Cleaners in September. city’s average dry cleaner as “a mom- attracts people,”says Ms.See at Flat vironmentally friendly processes can Early indications for both enter- and-pop shop with $250,000 in Rate, which primarily serves Man- power above-average growth over one stresses eco- prises are good. Despite the exis- sales and five or fewer employees.” hattan, but aims to expand to other the long haul remains to be seen. friendly processes tence of an estimated 1,500 dry Flat Rate and Green Apple pro- boroughs. “It boils down to convenience cleaners in New York City, the re- mote service and convenience as and price point,” says Joyce Moy, cent entries are attracting attention major selling points. Customers can Twist ties, be gone who has worked with many cleaners BY ERIKA RASMUSSON JANES and clients. Flat Rate projects rev- go online 24/7, set up an account green apple, which also targets as director of the small business de- enues of about $500,000 for 2006, profile, and choose their pickup and Manhattan, boasts an environmen- velopment center at LaGuardia everal years ago, Jose- and Green Apple expects to hit delivery dates. Though both firms tal advantage in its cleaning Community College in Queens. lynn See and her husband, $2 million. currently have no retail locations, method. In addition, the firm deliv- Lawrence Chua, ran out of Nora Nealis, executive director Green Apple plans to open stores ers all clothing in multiuse nylon COMMENTS? [email protected] patience with the dry cleaner in their Upper East SSide neighborhood. “The place was so inconvenient,” Ms. See says. “It would close at 7 p.m., and it was always a struggle © 2006 Continental Airlines, Inc. for us to make it.”She also found the pricing “arbitrary” and the quality “spotty.” When her brother mentioned a high-quality, one-rate cleaner near his home in Virginia, Ms. See and SERVICE? Mr. Chua looked into the concept. Two years ago, they started Flat Rate Cleaners.The company, based in Edgewater, N.J., charges a single,

GETTING READY WE’VE ACED IT. FOR A DRY RUN FLAT RATE FOUNDED 2004 EMPLOYEES Five ® OWNERS’ PREVIOUS JOBS Sales and marketing, financial analysis BUSINESSFIRST. GREEN APPLE FOUNDED 2003 EMPLOYEES 20 OWNERS’ PREVIOUS JOBS Airline consulting, construction project management Rated #1 International Business Class among per-piece rate of $4.99. Customers US airlines by readers of Condé Nast Traveler. place their orders for pickup and de- livery online. The actual cleaning is done by a wholesaler. With concierge service, gourmet food and wine, personal entertainment systems, Flat Rate is one of two firms try- and extra-wide sleeper seats, we’ve got the world’s best service game. Which ing to prove that even in one of the makes BusinessFirst a real winner. For reservations and information, city’s oldest and most crowded ser- go to continental.com or call 1-800-523-FARE. vice industries, there’s room for in- novators that can shake things up— Official Airline and grab market share. Green Apple Cleaners is also de- termined to make that point. Co- founder David Kistner and his wife became concerned about the dan- gers that dry cleaning chemicals can pose to pregnant women when she was expecting twins. An article about a method that uses liquid carbon dioxide as an al- ternative to the standard solvents in- spired him. “I wanted this service, and I thought others would, too,” Mr. Kistner says. Green machine he and co-founder Stavros Michailidis spent the next two years Work Hard. researching the industry; last March, they bought an eco-friendly dry cleaning plant in Lodi, N.J. It’s Fly Right. ® being retrofitted with $500,000 worth of equipment, including a

August 28, 2006 | Crain’s New York Business | 11 REAL ESTATE DEALS Sitting tight limits bite of rising rents

er to stay put than it is to negotiate eighth floor and part of the seventh tive strategy was to expand here,” Midtown hedge fund with a new landlord. floor. Under its new lease, Halcyon says David Hoffman, an executive saves on additional Halcyon Asset Management, will immediately expand into the re- managing director at Colliers ABR, which was preparing to sign a lease maining space on the seventh floor, which represented the landlord, space by staying put; at another building, worked out a taking another 8,000 square feet. In JAB Madison Associates. Broker- gym’s personal touch deal to stay at 477 Madison Ave. and three years,when the lease expires for age firm Hanley Advisors repre- double its space to 45,000 square the current ninth-floor tenant, Hal- sented Halcyon. ith office rents feet. The asking rent at the proper- cyon will take over that entire floor, Last year, the landlord realized in midtown ris- ty,which is at East 51st Street,is be- or 17,000 square feet.The firm’s new that a number of tenants in the HEDGING BETS: 477 Madison kept Halcyon. ing by the week, tween $60 and $65 a square foot. lease expires at the end of 2019. building had leases expiring in 2009. some businesses The hedge fund, which has $4.6 “Halcyon realized that the mar- “We identified a select number that need more billion under management, occupies ket was moving fairly rapidly away of companies to renew early, so we explains Mr. Hoffman. realW estate are finding that it’s cheap- 20,000 square feet on the building’s from it and that the most cost-effec- could spread out the leasing risk,” —julie satow Lower East Side hitting the weights property owner Ike Escava knew the Lower East Side needed another gym, but he didn’t want a New York Sports Club or an Equinox to open in the hipster haven. Mr. Escava took matters into his own hands, renting a 5,500-square- foot space to a startup called Ludlow Fitness. The gym, which landed a 16-year lease,will open in November at 100 Delancey St., on the corner of Ludlow Street.“It’s not a chain com- ing in and doing the same thing they do everywhere,” Mr. Escava says. Former real estate broker Mason Goldberg founded Ludlow Fitness to serve area devotees who have re- sisted the influx of national chains. “A major brand wouldn’t be received as well as I have been,” he says. To date, about 250 people have joined the gym, where a yearlong membership costs less than $400. Messrs.Goldberg and Escava ne- gotiated the deal privately.The ask- ing rent was less than $30 per square foot for the second-story location. —elisabeth butler Law firm snaps up consultant’s space a law firm has gobbled up space left behind by a consulting group that has been shedding offices. Crowell & Moring has subleased the entire 31st floor at 153 E. 53rd St.,be- tween Third and Lexington avenues, from consulting firm A.T. Kearney. The asking rent for the 29,000 square feet of space at the Citigroup Center was $60 a square foot. In January, A.T. Kearney com- pleted a management buyout from WHEN YOUR BANK HELPS YOU RUN YOUR FINANCES, Electronic Data Systems Corp. and started downsizing, leaving it with YOU HAVE MORE TIME TO IMPROVE OTHER PARTS OF YOUR BUSINESS. more office space than it needed.Be- fore the recent Crowell & Moring deal, the consultant subleased space that it had occupied on the 27th floor to Fortis Bank. A.T. Kearney re- mains in a 30,000-square-feet office that takes up the entire 30th floor. The sublease signed by Crowell & Moring expires in December 2008. “The law firm is new to New York A Superior Middle Market Banking Team and wanted a short-term arrange- ment because it expects tremendous Experienced Relationship Managers, State of the Art Cash Management, Flexible Credit Lines . growth,”says Barbara Winter,a sen- ior vice president at Jones Lang LaSalle, which represented A.T. Chicago Los Angeles New York Kearney. Cushman & Wakefield Tel. (847) 994-5496 Tel. (323) 724-7272 Tel. (212) 417-6631 represented Crowell & Moring. —julie satow

12 | Crain’s New York Business | August 28, 2006 TECHNOLOGY INSIDE LARGEST SOFTWARE COMPANIES in the NY area PAGE 14 “Gen X researchers ask, ‘Where am I going to commercialize my findings?’ ” —Bill Fair, NYC Economic Development Corp., Page 15

START ME UP: Biotech’s Joel Marcus thinks Alexandria’s range of contacts will help the developer recruit biotech last chance businesses where others have failed. to hit radar East Side complex gives NY shot at rivaling industry’s hotbeds say, the last chance—for New York BY JUDITH MESSINA to turn its prodigious biomedical and scientific assets into a competi- in the early 1990s, Jon Lewis, tive industry. then a surgical oncologist at Memo- rial Sloan-Kettering Cancer Cen- Global impact ter, watched biotechnology firms in “it sends a message to the world New York struggle to survive.Scien- that New York wants to be a player,” tists here had little interest in com- says Ron Cohen, founder and CEO mercial biotech, and the moneymen of Acorda Therapeutics Inc., a drug behind life sciences startups found development company in Haw- more fertile ground elsewhere. thorne, N.Y., and former chairman “Investors said, ‘This is not San of the statewide New York Biotech- Francisco,’ ” recalls Dr. Lewis, now nology Association. “We have nev- chief executive of Manhattan-based er had that kind of message coming Ziopharm Oncology Inc., a out of New York before.” publicly held developer of $650M The construction of the cancer drugs that recently AMOUNT OF East River complex will ad- raised $37 million in a pri- AID that Florida dress one of the major com- pulled together vate placement. to lure biotech plaints of would-be entre- Today,New York is final- anchors preneurs—the fact that the ly poised to challenge San city lacks appropriate space Francisco,Boston and San Diego for for biotech companies. leadership in the biotech industry. Other elements will be necessary With backing from Mayor Michael to bolster a budding biotech industry. Bloomberg and the participation of Members of the city’s academic re- a skilled developer, a $700 million, search establishment will need to co- 872,000-square-foot commercial operate in ways they never have be- biotech center is set to rise on city- fore.The state and the city may have owned land near Bellevue Hospital. to increase incentives,and the emer- gence of a locally focused venture Last-ditch effort? capital community will be critical. the city is providing $110 million “What you’re finding now is a in tax breaks, and the state, $27 mil- huge increase in terms of the com- RISING IN THE EAST: A vision of East River Science Park. lion for infrastructure improvement. petition [among regions] for bio- The East River Science Park is a tech, and there’s only so much to go

david neff david singular opportunity—and, many See BIOTECH on Page 15

Limited space makes Rockefeller DOWNSTATE GROWS University and to UP: An expansion will Incubators Paul Greengard, create inexpensive city inhospitable; space in Brooklyn, the Nobel Prize says Dr. Eva Cramer. is help on the way? winner whose give lifeline discoveries form BY JUDITH MESSINA the basis of ITI’s work, while find- ing a location that it could afford. tostartups; the success of Intra-Cellular Ther- Fortunately for ITI,coveted space apies Inc., a young biotechnology opened up at the Audubon Business firm developing treatments for and Technology Center, Columbia delays pose schizophrenia, Parkinson’s disease University’s 11-year-old biotech in- and other central nervous system cubator in Washington Heights. disorders, depended on resolving a “We are very,very grateful we got scientific and economic conflict. It space at Audubon,” says ITI Chief a threat needed to maintain its ties to See INCUBATORS on Page 16 buck ennis

August 28, 2006 | Crain’s New York Business | 13 REPORT TECHNOLOGY

EMPLOYMENT RISES AT TOP COMPANIES despite outsourcing pressures, employment at the 25 largest software companies in the New York area rose 3.8% in the past year to almost 15,000 workers. Cognizant Technology Solutions, a leader in outsourcing operations in India, dou- bled its local developers to 1,000. Sandata Tech- nologies, a provider of data processing for health care,expanded almost as rapidly.Revenues rose as well, increasing by 15% for firms that reported sales for both years. Three companies made the list for the first time this year: Ness Technologies, Innodata Isogen and IconNicholson. jennifer chiu New York Area’s Largest Software Companies Ranked by number of area development personnel

2006 NY area 2005 NY area Projected 2006 2005 Head of development development revenues revenues Rank Company Phone/Web site software division personnel1 personnel2 (in millions) (in millions) Key clients Types of products and services

International Business Machines Corp. (914) 499-1900 Steven A. Mills 10,217 10,343 n/d $91,134.0 General Electric, Merrill IT solutions and services 1 1 New Orchard Road www.ibm.com Senior vice president, group Lynch, Prudential Armonk, NY 10504 executive, software Insurance Cognizant Technology Solutions Corp. (201) 801-0233 Allen Shaheen 1,000 500 $1,370.0 $885.8 MetLife, IMS Healthcare, Custom IT design, development, 2 500 Glenpointe Center West www.cognizant.com Vice president, general J.P. Morgan Chase integration and maintenance services Teaneck, NJ 07666 manager, advanced solutions group CA Inc. 3 (631) 342-6000 Alan F. Nugent 740 720 $3,796.0 $3,536.0 AXA Financial, IT management software and 3 1 CA Plaza www.ca.com Executive vice president, Sallie Mae, Caterpillar services for enterprise systems, Islandia, NY 11749 chief technology officer security, storage and service, and portfolio management Information Builders (212) 736-4433 Gerald D. Cohen 566 591 $310.0 $325.0 City of New York, J.P. Business intelligence and integration 4 2 Penn Plaza www.informationbuilders.com President, chief executive Morgan Chase, Ford software and services New York, NY 10121 Motor Computer Horizons Corp. (212) 371-9600 Randall Verdino 432 487 $280.0 $268.8 Citigroup, UBS-Warburg, Application development, data 5 845 Third Ave. www.computerhorizons.com President, commercial City of New York management, network infrastructure New York, NY 10022 services and human capital management Starpoint Solutions (212) 962-1550 Peter Melomo 225 174 $65.0 $62.0 J.P. Morgan Chase, Technology staffing, software 6 115 Broadway www.starpoint.com Executive vice president, Wellington Management, implementations and upgrades, and New York, NY 10006 professional development Citigroup application development services Computer Generated Solutions Inc. (212) 408-3800 Paul Magel 200 125 n/d n/d Jones New York, Marc Software and related business 7 3 World Financial Center www.cgsinc.com Senior vice president, Jacobs, Brooks Brothers consulting services for wholesale New York, NY 10281 application solutions distribution and manufacturing division companies SunGard (212) 317-7400 Michael Muratore 169 200 n/d $4,000.2 n/d Software and IT services for 8 560 Lexington Ave. www.sungard.com Executive vice president financial services, higher education New York, NY 10022 and the public sector DoubleClick Inc. (212) 683-0001 Greg Tagaris 153 135 n/d n/d AOL, eBay, MySpace Digital marketing solutions 9 11 Eighth Ave. www.doubleclick.com Chief information officer New York, NY 10011 Ness Technologies Inc. (201) 488-7222 Raviv Zoller 151 140 $485.0 $385.4 Pfizer, Wyeth, Cushman Global provider of end-to-end IT 10 3 University Plaza Drive www.ness.com President, chief executive & Wakefield services and solutions Hackensack, NJ 07601 Intrasphere Technologies Inc. (212) 937-8200 Samuel Goldman 105 107 $26.0 $26.1 Pfizer, Eli Lilly, Johnson Technology strategy, systems 11 100 Broadway www.intrasphere.com Co-founder, chief operating & Johnson integration and custom application New York, NY 10005 officer development RSG Systems Inc. (646) 839-4100 Mukesh Sehgal 105 95 $20.0 $15.0 Viacom, Discovery Custom business application 11 14 E. 38th St. www.rsgsystems.com President, chief executive Communications, Lifetime development and products for the New York, NY 10016 Entertainment media and entertainment industry Innodata Isogen Inc. (201) 371-2828 Renee Swank 100 75 $42.0 $54.0 Reed Elsevier, Nortel, Content and knowledge 13 3 University Plaza www.innodata-isogen.com Vice president, professional Boeing management, publishing, search and Hackensack, NJ 07601 services text analytics, business intelligence NumeriX (212) 302-2220 Gregory Whitten 90 80 n/d n/d Toronto Dominion Cross-asset exotic derivative 14 757 Third Ave. www.numerix.com Chief executive, chief Securities, Fidelity analytics and software for pricing, New York, NY 10017 technology officer Investments, American valuing and risk management International Group Mobius Management Systems Inc. 4 (914) 921-7200 Dennis Levesque 87 93 $89.2 $77.7 ABN AMRO Bank, H.J. Integrated software solutions for 15 120 Old Post Road www.mobius.com Vice president, product Heinz, Aetna records and content management Rye, NY 10580 development OpenLink Financial Inc. (516) 227-6600 David Buksbaum 83 71 $88.0 $71.0 Citigroup, Hess, Banco Energy and financial trading, risk 16 1502 Reckson Plaza www.olf.com Chief technology architect Central de Costa Rica management, and operations Uniondale, NY 11556 processing software solutions Random Walk Computing Inc. 5 (212) 480-5820 Lloyd Altman 70 68 n/d n/d ICAP, National Stock Business analysis and custom 17 11 Broadway www.randomwalk.com Director of consulting Exchange, MarketAxess software development services for New York, NY 10004 the financial industry

14 | Crain’s New York Business | August 28, 2006 REPORT TECHNOLOGY

2006 NY area 2005 NY area Projected 2006 2005 Head of development development revenues revenues Rank Company Phone/Web site software division personnel1 personnel2 (in millions) (in millions) Key clients Types of products and services

DataSynapse Inc. (212) 842-8842 Peter Y. Lee 64 50 $50.0 $20.0 Wachovia, Bank of Grid computing software and 18 632 Broadway www.datasynapse.com Chief executive, co-founder America, Nationwide on-demand application New York, NY 10012 Mutual Insurance infrastructure for commercial applications AXS-One Inc. (201) 935-3400 Elias Typaldos 61 63 n/d $32.8 Pfizer, American Software solutions for financial 19 301 Route 17 North www.axsone.com Executive vice president, International Group, management, electronic records, and Rutherford, NJ 07070 technology and business Deutsche Bank archival and life-cyle management operations Sandata Technologies Inc. (516) 484-4400 Gary Stoller 57 32 $19.5 $17.2 Visiting Nurse Service of Data processing, software 20 26 Harbor Park Drive www.sandata.com Chief technology officer New York, Family Health development and computer Port Washington, NY 11050 Care, Catholic Community consulting services for the private Services of Western sector and health care industry Washington State Applimation Inc. (212) 500-1200 Bob Markese 55 55 $20.0 $15.0 Xerox, Yahoo, Motorola Data growth management, 21 242 W. 36th St. www.applimation.com Chief executive application change management and New York, NY 10018 compliance solutions Net@Work (212) 997-5200 Chaim Cohen 53 43 $14.0 $11.0 Equinox Fitness Clubs, Application development and 22 575 Eighth Ave. www.netatwork.com Director of software Benjamin Moore, systems integration of accounting, New York, NY 10018 development Daewoo customer relationship management and e-commerce software Software Engineering of America Inc. (516) 328-7000 Russell Zitron 53 50 $200.0 $200.0 IBM, MetLife, Chase Data center solutions and consulting 22 1230 Hempstead Turnpike www.seasoft.com Vice president of technical Bank and training services for automated Franklin Square, NY 11010 services operations RCS Inc. (914) 428-4600 Ted Nygreen 45 38 n/d n/d Clear Channel Radio industry music scheduling and 24 12 Water St. www.rcsworks.com Chief technology officer Communications, CBS on-air software, monitoring of White Plains, NY 10601 Radio, Citadel commercials on radio, TV and cable Broadcasting and in newspapers IconNicholson (212) 274-0470 Christopher Enright 43 40 n/d n/d Nestlé Waters North Web site and interactive application 25 295 Lafayette St. www.iconnicholson.com Chief technology officer America, MasterCard design and development, business New York, NY 10012 International, strategy, systems integration, digital Bristol-Myers Squibb marketing and global Internet solutions New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Crain’s New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but there is no guarantee that these listings are complete. To qualify for this list, companies must have an office in the New York area; companies that exist solely to hire out development personnel for contract assignments are not considered. 73 companies were contacted for this list. Information was supplied by the software companies. In case of tied figures, companies are listed alphabetically under the same ranking number. Revenue figures are for calendar year except where noted. 2006 revenue figures are estimates for companies with fiscal years ending July through December, and 2006 revenue figures are actual for companies with fiscal years ending in January through June. n/d Not disclosed. 1-Full-time and full-time-equivalent development personnel, comprising programmers and consultants who spend 51% or more of their time on IT design, maintenance, construction, implementation or strategy, as of June 30. 2-Full-time and full-time-equivalent development personnel, comprising programmers and consultants who spend 51% or more of their time on IT design, maintenance, construction, implementation or strategy, as of Dec. 31. 3-Computer Associates International changed its name to CA Inc. on Feb. 1, 2006. On June 13, 2006, CA Inc. acquired MDY Group International Inc. All 2006 figures reflect acquisition. Fiscal year ends March 31. 4-Fiscal year ends June 30. 5-On July 20, 2006, Random Walk Computing Inc. was acquired by Accenture. Figures do not reflect acquisition. Research: Denise Southwood and Adrianne Pasquarelli

tain their role in the firmament,they NYC’s BIOTECH have to provide opportunities.” Biotech’s last chance to take hold Still, it remains to be seen ASSETS whether the construction of a dedi- cated bricks-and-mortar complex Continued from Page 13 ed, Alexandria could break ground “We’re one of the only compa- 11 major academic medical can create the kind of critical mass around,” says Dr. Cohen. “[We this year,and the first of three planned nies in the world that could recruit centers that evolved naturally in cities such have] our work cut out for us.” buildings could open by early 2009. to New York City,”says Mr.Marcus, 26 research centers as Boston and San Diego. The East River Science Park has who recently joined the board of the Nor is it clear how young biotech been a long time coming. Previous Putting out feelers New York Biotechnology Associa- 72 hospitals companies will be able to afford East city administrations usually gave no efforts to attract tenants are al- tion.“We have a very broad,diversi- 128 Nobel laureates Side rents when they can barely pay more than lip service to the idea of ready under way.The city’s Econom- fied client base.” 1,300 biotech patents in past the $55 a square foot for space at such a center.But Mr.Bloomberg— ic Development Corp. and the New In order to help develop a com- Columbia University’s Audubon in- five years irked that Swiss pharmaceutical gi- York City Investment Fund, a long- mercial base, Mr. Marcus has plans cubator in Washington Heights. ant Novartis never considered New time biotech booster, have met with to attract biotech managerial talent $1.3 billion in annual funding from Rents for standard office space near York when it decided to locate its more than 400 firms around the and more early-stage venture mon- the National Institutes of Health the proposed science park are run- $250 million research and develop- world in the past two years. They ey to New York. He declines to pro- Source: NYC Economic Development Corp. ning at nearly $38 a square foot, ac- ment headquarters in the United have found that companies’ knowl- vide specifics,but he is likely to draw cording to CB Richard Ellis, but States—revived the idea of a biotech edge of New York often amounted to on his experience in Seattle. There, there are no benchmarks for the center early in his first term, putting little more than familiarity with the his Accelerator Corp. provides speak of,”says Matt Wotiz,a former kind of cutting-edge lab space that the Bellevue site out to bid in 2004. names of a few well-known hospitals. startups with virtually everything venture capitalist who has started a East River Science Park will offer. New York University, which had “Nobody in the commercial bio- they need to get off the ground: local biotech networking group, Another question is whether the earlier shepherded the site through tech world thought of New York as a space, management, capital and sci- known as Lab to Wall Street.“None state’s numerous incentives are suffi- the zoning approval process, took a center,” says Kathryn Wylde, presi- entific expertise. of the key players seemed to know cient.They include loan and venture pass on developing it. A year ago, the dent of the Partnership for New York Entrepreneurial talent and mon- each other like they do in San Fran- capital programs and a new tax cred- city selected Alexandria Real Estate City and former head of the NYCIF. ey will be essential in a city where cisco or Boston.” it, worth up to $250,000 in cash an- Equities Inc.to build and manage the Alexandria CEO Joel Marcus ivory-tower institutions historically nually per firm. Meanwhile, Florida complex. The $2.5 billion Pasadena, says that his firm’s network of con- have had scant connections with in- Ready to join forces mustered $650 million in aid to lure Calif.-based real estate investment tacts, at places ranging from fledg- dustry and with the local venture today, a new generation of industry branches of San Diego-based trust is the nation’s leading develop- ling biotech firms to the R&D labs capital community. leaders is committed to cooperation. Scripps Research Institute and The er for lab and scientific space. of big pharmaceutical companies, “One of my frustrations [as a The deep talent pool of the city’s ac- Burnham Institute for Medical Re- If lease terms are hammered out will help the city overcome that venture capitalist] was that there ademic research institutions and search as anchors for proposed com- and approved next month,as expect- problem. was no network in New York City to their presumed willingness to col- mercial biotech centers. laborate are among the primary There is general agreement that draws of the East River Science the city must do whatever it takes to HOW THE CITY STACKS UP Park. Memorial Sloan-Kettering make the East River Science Park a Cancer Center and Rockefeller Uni- success. According to a 2001 study San Francisco/ versity, among others, are helping to by the NYCIF, an estimated 30 New York area Bay Area San Diego area Boston showcase the city’s biomedical assets biotech firms get their start in New Number of biotech companies 72 820 502 275 for investors and biotech firms. York City each year, but most even- “The Gen X researchers who tually flee to places with more space Number of biotech jobs 4,650 84,949 32,409 26,329* represent the next wave of National and more generous incentives. Institutes of Health funding are ask- If the East River complex does Biotech space (in thousands of sq. ft.) 361 17,600 9,869 15,812 ing,‘Where am I going to commer- not succeed, “the train has left the Biotech patents (1990-1999) 6,800 3,991 1,632 3,007 cialize my findings?’ ” says Bill Fair, station,”says Ms.Wylde of the Part- NY and San Diego firm/job data are for 2003; other cities’ data are for 2002. Square footage data are for 2003. *Figure is for Massachusetts; most jobs are in Cambridge-to-Worcester head of the life sciences unit for the nership for New York City. corridor. Sources: BayBio, Brookings Institution, Colliers Int’l, Massachusetts Biotech Council, NYC Investment Fund, NY Biotech Assn., San Diego Regional EDC city’s EDC. “Institutions are recog- nizing that if they’re going to main- COMMENTS? [email protected]

August 28, 2006 | Crain’s New York Business | 15 REPORT TECHNOLOGY

Despite its rents of $55 a square raising stage. foot—a steep price for startups— Meanwhile, Downstate’s larger Incubators give startups lifeline the incubator is fully occupied and Advanced Biotechnology Park is usually has a waiting list of up to five grappling with the loss of its anchor companies. tenant, ImClone Systems Inc., Continued from Page 13 vanced Biotechnology Park in cluster New York can claim. Construction of a second incu- which abandoned efforts to locate a Executive Sharon Mates. “Other- Brooklyn offer lifelines to small But the facilities can accommo- bator, a 240,000-square-foot build- new division there. Its 12,000- wise, we would have had to leave biotech companies in the city.They date only about two dozen compa- ing known as Audubon IV, was put square-foot space remains vacant. New York.” have been key to launching and re- nies, and efforts to expand them on hold while the university The Audubon center and the in- taining many of the businesses that have run into difficulties. When searched for a new dean of health A mature outlook cubator at SUNY Downstate’s Ad- make up whatever small biotech companies outgrow these centers, sciences. Lee Goldman, formerly the next stage in Downstate’s there are few alternative locations, dean of medicine at the University growth is making room for larger and they remain far too expensive of California at San Francisco, took and more mature biotech compa- for most startups. office last month and is expected to nies. The nearby Brooklyn Army revive the expansion effort. Terminal has been designated as Complex history The Brooklyn incubator at spillover space for companies that first proposed in 1982, Audubon SUNY Downstate Medical grow out of the incubator or Biomedical Science and Technolo- Center, open since 2004, is that need manufacturing fa- gy Park opened in 1995 after over- smaller than the existing one $42M cilities. The state Legisla- coming intense community opposi- at Audubon.To lure compa- AMOUNT ture last year appropriated allocated by tion, which stemmed from health nies to unfamiliar territory NY to develop $42million for development concerns and the site’s historic im- across the East River, it of- B’klyn space for of the site, and SUNY is portance to African-Americans as fers rents of about $26 a maturing firms about to request expressions the place where Malcolm X was as- square foot. Because it’s in of interest from developers. sassinated. The incubator occupies an enterprise zone, it provides tax Once the project is done, at least 100,000 square feet in the park; advantages, as well as help from a one incubator tenant, the Interna- along with two university research consortium of businesses, including tional AIDS Vaccine Initiative, buildings,it is part of a planned five- KeySpan and Consolidated Edison, could be ready to expand there in 18 building, 1 million-square-foot re- that can assist with financing and months, says Dr. Eva Cramer, vice search complex. reduce operating costs. president for biotechnology and sci- Additional incubator space, entific affairs at SUNY Downstate. comprising another 13,000 square “The space will be inexpensive,” feet, is awaiting a certificate of states Dr. Cramer. occupancy. The third phase of Amper development is still in the fund- COMMENTS? [email protected] ...Taking Our Software THE WEEKS AHEAD Clients to the Top THIS WEEK’S EVENTS SEPTEMBER 7 AUGUST 29 New York County Lawyers’ Association Networking for Professionals holds holds course on landlord-tenant law. hat makes Amper one of the networking reception. 6:15 p.m. to 8:15 6:00 to 9:00 p.m., 14 Vesey St. Fee: $95 Crain's New York Business fastest- p.m., Chemist Club at the Dylan Hotel, members, $120 nonmembers. Wgrowing CPA firms and one of the 52 E. 41st St. Fee: $10 members and (212) 267-6646, ext. 215. largest firms in the US? It's the trust and $15 nonmembers in advance; $20 for all at door, cash only. (718) 625-1369 or SEPTEMBER 11-17 confidence that thousands of companies [email protected]. SEPTEMBER 11 have placed in us for more than 40 years. AUGUST 30 New York City Business Solutions holds Gold Place Network holds workshop on workshop on how and where to get You should know that Amper has: creating a memorable marketing message. financing. 10:00 a.m. to 12:00 p.m., 110 6:00 p.m. to 9:00 p.m., SLC Conference William St., fourth floor. Free. Center, 352 Seventh Ave., 16th floor, (212) 618-8914. SEPTEMBER 12
One of the leading software, Internet room E. Fee: $15. (917) 584-6263 or www.goldplacenetwork.com. Crain’s New York Business holds commerce, IT services and life science AUGUST 31 networking breakfast and program with companies practices in Metro New York Women’s Venture Fund holds workshop the winners of the 11th annual Small
on building a business. 8:30 a.m. to Business Awards. 8:00 a.m. to 9:30 a.m., Served more than 75 public and privately 10:00 p.m., 545 Eighth Ave., 17th floor. Sheraton New York, 811 Seventh Ave. held software companies Fee: $247. (212) 563-0499 or Fee: $55 if preregistered by Sept. 5; $60 [email protected]. thereafter. (212) 210-0739 or
Specialists in accounting, domestic and AUGUST 31 www.newyorkbusiness.com/calendar.cms. international tax matters, and consulting Business Network International, chapter SEPTEMBER 12 16, holds networking breakfast. 7:15 South Bronx Overall Economic
An extensive financing, legal, and a.m. to 8:45 a.m., Affinia Dumont Development Corp. holds workshop on business network Hotel, 150 E. 34th St., third floor. Free. starting a small business. 6:00 p.m. to (212) 925-1482. 8:00 p.m., 555 Bergen Ave., third floor. Fee: $20. (718) 292-3113, ext. 7534, or SEPTEMBER 4-10 [email protected]. For more information on how Amper can SEPTEMBER 6 SEPTEMBER 12 meet your needs, contact us today: Crain’s New York Business holds breakfast Manhattan Chamber of Commerce and program with Deputy Mayor Daniel holds networking reception. 6:00 pm. to Doctoroff on downtown’s progress post- 8:00 p.m., Shady Jake’s, 416 Eighth Ave. Mike Lopez, CPA Sept. 11.The event kicks off Pace Fee: $15. (212) 473-7805 or University’s Aftershock Conference. 8:00 [email protected]. 6 East 43rd Street a.m. to 9:30 a.m., Michael Schimmel —adrianne pasquarelli New York, NY 10017 Center for the Arts, 3 Spruce St. Free. 212.682.1600 Registration required. (212) 210-0739 or TO LIST YOUR EVENT [email protected] www.newyorkbusiness.com/calendar.cms. SEPTEMBER 7 Crain’s lists business meetings online and includes Camba Small Business Services holds them in the print edition on a space-available basis. workshop on Internet marketing for Events in New York City with admission fees of less small businesses. 6:00 p.m. to 8:30 p.m., than $300 are considered for the print publication. 884 Flatbush Ave., second floor, Listings can be submitted only through the Crain’s Brooklyn. Free. (718) 282-2500, ext. Web site. To submit a calendar listing, go to 242, or [email protected]. www.newyorkbusiness.com and click on “Events.” Sponsors have a choice of several free or paid list- ing options. All business events will be posted “Seeing Beyond the Numbers...” More meetings online at online within two business days. www.amper.com www.newyorkbusiness.com Click on “Events” Crain’s can neither confirm receipt of listings nor say if or when event listings will appear in the print edition.

16 | Crain’s New York Business | August 28, 2006 Crain’s New York Business Announces Neighborhood Journal A Great Space for You S.I. Yankees score, to Showcase Your Space but not in stands & More! Marketing blamed for low attendance; Fall Edition sale to Steinbrenner ISSUE DATE: seen supplying magic October 16 s minor league teams go, the Staten Island AD CLOSE: Yankees have a lot go- ing for them.The fran- PLAY BALL: Despite a new stadium and good September 28 chise is the single-A af- players, the Baby Bombers don’t fill seats. Afiliate of the mighty Bronx Bombers. It won the league title last season. It enjoys a spiffy new Mets’ single-A club—are going home—Richmond County Bank great guns in their Coney Island Ballpark, offering stunning views of home of the same vintage. lower Manhattan—within easy “The [Cyclones] have been far reach of millions of people via train, more successful,that’s for sure,”says ferry or car. Brooklyn Borough President Marty All that’s missing are the fans. Markowitz. About 60% of the stadium’s 6,500 He cites Brooklyn’s longer histo- seats are warmed only by the sun. ry with professional baseball and “Attendance has fallen off steadi- more activities near the Cyclones’ To advertise, call 212-210-0259 or visit newyorkbusiness.com. ly year after year,” says Borough KeySpan Park as reasons the team President James Molinaro. “I just has out-drawn its Staten Island can’t understand why they can’t at- counterpart. Of course, Brooklyn tract people.” also has five times as many resi- Solving that mystery will soon dents, millions of expatriates and fall to new owners.After seven years even more mass-transit options to at the helm, the father-and-son duo its stadium. Stanley and Josh Getzler are report- —erik engquist edly selling their 51% of the team to the real Yankees. Hal Steinbrenner, George’s son, owns the other 49%. Bronx rehab project The sale is already stirring optimism in the borough that the Baby clears last hurdle Bombers can finally reach their ten years after it began,the reha- commercial potential. bilitation of the sprawling Diego A Brand New Package Given that tickets sell for $5 to Beekman Houses in the South $11, price is certainly not the prob- Bronx took a major step toward lem. “It’s cheaper than going to the completion early this month. Cour- from Crain’s New York Business movies,” Mr. Molinaro notes. tesy of a $12 million loan from the Like many others on the Island, city’s Department of Housing the borough president believes that Preservation and Development, the the club has been poorly marketed. project is expected to be completed “You have to advertise in Manhat- next summer. It has already ab- tan,” he says. The need is especially sorbed $20 million in funding. dire at the top end.Whereas “corpo- “This is definitely the final NEW LOOK! rate people” from the city formerly phase,” says Craig Livingston, filled eight or nine luxury boxes chairman of the Diego Beekman NEW FOCUS! every game with 16 to 20 people Mutual Housing Association, each, now just one or two boxes are which took over the project from the ISSUE DATE: sold, he says. Department of Housing and Urban Officials of the Bronx and Stat- Development in 2003 with help October 9 en Island teams did not respond to from the South Bronx Overall Eco- queries. But César Claro, executive nomic Development Corp. AD CLOSE: director of the Staten Island Eco- “The type of work that we’re do- nomic Development Corp., says a ing is going to ensure that the build- September 21 change in ownership bodes well. ings will be in great condition for “Things are only going to get the next 10 to 15 years,” Mr. Liv- better now as the Staten Island Yan- ingston says. kees get reorganized,” Mr. Claro Work already completed in the says. Nonetheless, he insists that 38-building, 1,230-apartment having minor league baseball has al- complex ranges from replacement of ready given the area a real boost. elevators and boilers to repairs of “The Richmond County Bank lobbies and common areas. With Ballpark has had a major economic the new funds, DBMHA will begin impact on the St. George area,” Mr. installing new pipes and tackling Claro says. “Real estate values, par- other infrastructure needs, includ- ticularly for condominiums, have ing wiring a new security system. doubled or tripled since the ballpark “Everything is moving in a posi- was built [in 2000].” tive direction,”says Phillip Morrow, Still, the Staten Island Yankees president of SoBro and vice chair- To advertise, call 212-210-0259 or visit newyorkbusiness.com. could have done far better. The man of the DBMHA. archrival Brooklyn Cyclones—the —kira bindrim

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Two years experience The City of New York Department of Parks & in the publishing industry Recreation requests proposals for the operation of Recreation requests proposals for the renovation, the Alley Pond driving range, miniature golf operation and maintenance of an 18-hole golf required. course, pro shop, and snack bar, Queens. course, clubhouse and food service facility, at Silver Lake Park, Staten Island. All proposals must be submitted no later than Resumes with cover letters Thursday, October 26, 2006 at 3:00 p.m. A site All proposals must be submitted no later than and salary history can be tour will be held on Monday, September 18, 2006 Thursday, October 26, 2006 at 3:00 p.m. A site tour submitted for consideration at 2:00 p.m. will be held on Wednesday, September 20, 2006 at 11:00 a.m. to: [email protected]. 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18 | Crain’s New York Business | August 28, 2006 lenders are clear—but so are the come dropped by two-thirds com- risks, which are growing by the day. pared with the figure for the previ- Street tries mortgage market When borrowers default on their ous three months.The percentage of loans, their mortgage banks can get loans deemed “seriously delinquent” Continued from Page 1 Street firms have bought loans from especially true now.They note that stuck with big losses.On top of that, rose to 6.50%, up from 6.12% in the many mortgage lenders down Countrywide and its peers, sold demand for mortgage-backed se- rising numbers of defaults could previous quarter. steeply, the banks are getting real them off to investors and happily curities is still robust. Meanwhile, quickly damp investor demand for The story is much the same at bargains, they insist. pocketed commissions of 1.5%. the price of lenders is simply too mortgage-backed securities. MortgageIT, the Manhattan-based Some experts see the latest craze Last year, total sales reached good to pass up. Deutsche Bank lender and real estate investment as downright dangerous. They wor- $1.4 trillion, according to research Dangerous game trust that Deutsche Bank is buying ry that investment banks are enter- firm Dealogic, a record. By buying “it is a strange time to be stick- for $429 million in cash.The lender ing totally unfamiliar territory and their own mortgage lenders, the in- ‘A strange time ing your toe in, that’s for sure,” says reported that net income fell by 30% that if the housing market comes in vestment banks plan to cut out the Richard Hofmann, an analyst at in the second quarter versus the for a hard landing, they could get middleman.In the process,they will to be sticking CreditSights. “The brokerage firms same period a year earlier, and the buried beneath a mountain of delin- be guaranteed a steady supply of are playing with fire.” percentage of total loans past due or quent mortgages. Angelo Mozilo, loans and will be able to grab a big- your toe in, That fact was made painfully foreclosed more than doubled. chief executive of the nation’s largest ger share of the profits. clear late last week when H&R With such grim results, it’s no mortgage company, Countrywide that’s for sure’ Block announced that it would take wonder that dozens of lenders are Financial Corp., is among those Defensive move a $100 million earnings hit because on the block. with serious doubts about novices “loans are now being sold to Wall of delinquent payments in its mort- “A lot of mortgage lenders see entering the market. Street through competitive bid- gage unit. The risks are also appar- tough times ahead, so they’re eager “I woke up the other morning ding,”says Jay Remis,a senior man- ent in the case of Saxon Capital to sell now,” says Mickey Storms, a and found out I’m competing aging director at Bear Stearns, agreed last month to pay $14.75 a Inc., a mortgage lender that Mor- portfolio manager at Vectors Re- against the Street,” he told analysts which began writing mortgages last share for MortgageIT Holdings gan Stanley earlier this month search Group, a Manhattan hedge in a conference call last month. year. “When you’re forced to com- Inc., 19% over the market price. A agreed to acquire for $706 million fund specializing in mortgage- “They don’t know anything about pete on price, it’s a smart thing to year ago, the stock was fetching in cash. backed securities. the mortgage business.” own your own supply.” nearly $20 a share. The Virginia-based company re- For more than two decades,Wall Investment bankers say that is The attractions of buying up ported that second-quarter net in- COMMENTS? [email protected]

Queens businesses struggling CONTACT INFORMATION Continued from Page 1 Businesspeople also complain millions of dollars. THE CRAIN’S BEAT SHEET too late. Although a Consolidated that city and federal agencies are Robert McAdam, owner of a Edison reimbursement program giving out loans when owners need Planet Wings fast-food franchise PUBLISHER / EDITORS industries and the New York and city and federal loan programs grants. So far, they have two main across the street from the Cold economy. are available,several operations have government options: a zero-inter- Stone Creamery,says he has already ALAIR TOWNSEND had to close their doors. est emergency loan of up to borrowed as much as he can.He lost PUBLISHER SAMANTHA MARSHALL “For a new business it’s financial- $10,000 from the city Department $8,000 worth of food and $25,000 e-mail: [email protected] SENIOR REPORTER ly devastating,” Mr. DiStefano says. of Small Business Services, and a in sales during the blackout. So far, Writes column on public affairs. e-mail: [email protected] “We were already in debt.” Small Business Administration he has gotten $7,000 from Con Ed Covers education, and international Owners complain that Con Ed’s loan of up to $1.5 million with 4% and a $10,000 loan from the city— GREG DAVID business and trade. EDITOR $7,000 reimbursement for perish- interest. far from enough to keep his location e-mail: [email protected] able goods covers only a fraction of As of Aug. 24, SBS had received open. ANNE MICHAUD In charge of all editorial SENIOR REPORTER their losses. Nor will the utility pay 136 loan applications and had deliv- operations for the paper and for damaged machinery or labor ered a little over $800,000—an av- Fears of another blackout e-mail: [email protected] related products. Covers politics costs. erage of $7,500—to 111 businesses. as a result, last week Mr. and government, “Con Ed should have a full The SBA received only 12 appli- McAdam took down the sign on his RICHARD BARBIERI works on Crain’s Insider newsletter. bailout, a comprehensive program cations and has approved five loans store, which opened at the same MANAGING EDITOR for the affected businesses,” says valued at a total of $565,500. Own- time as Cold Stone Creamery. He e-mail: [email protected] MIRIAM KREININ SOUCCAR City Councilman Eric Gioia, who ers complain about the agency’s had to raise $50,000 from a new Oversees paper’s day-to-day functions. SENIOR REPORTER has openly criticized the response. onerous paperwork and the accrued partner to open a different fran- e-mail: [email protected] “It has failed to do that and has interest. chise, All Star Burger. CYNTHIA RIGG Covers the business of arts and PROJECTS EDITOR culture. shown these business owners little U.S. Rep. Carolyn Maloney’s of- “I’m not going to borrow money e-mail: [email protected] more than lip service.” fice conducted a survey of 63 busi- and put myself in a hole,” Mr. Edits special reports. nesses in Astoria and found that McAdam says. “I need to put mon- BARBARA BENSON REPORTER Onerous paperwork they had lost an average of $12,300. ey in my pocket.” VALERIE BLOCK DEPUTY MANAGING EDITOR e-mail: [email protected] a spokeswomanresponds that Con Almost three-quarters of them Businesses that have been Works on Health Pulse newsletter. Ed has mailed more than 29,000 re- lacked blackout-specific business- around longer than these newcom- e-mail: [email protected] imbursement checks totaling about interruption insurance.The city has ers may be able to swallow their loss- Edits “New York, New York” column and other stories. ELISABETH BUTLER $9.4 million, adding that state reg- estimated that losses for businesses es. But it won’t be easy. REPORTER ulations cap the amount at $7,000. in the entire affected area are in the “Residents were buying in small- ERIK IPSEN e-mail: [email protected] er quantities because they fear the DEPUTY MANAGING EDITOR Covers retail and apparel. blackout might happen again,” says e-mail: [email protected] Queens Community Board 2 Edits small business columns ERIK ENGQUIST SPECIAL CRAIN’S BREAKFAST, SEPT. 6 Chairman Joseph Conley. “Busi- and special reports. REPORTER nesses weren’t getting enough vol- e-mail: [email protected] DOCTOROFF ASSESSES POST-SEPT. 11 NYC ume, so they were leery of restock- REPORTERS Covers politics and government, ing.” works on Crain’s Insider newsletter. DEPUTY MAYOR DANIEL DOCTOROFF (right) will discuss AARON ELSTEIN downtown’s progress five years after the Sept. 11 Marino’s Fish Market, a fourth- generation family-run store that’s SENIOR REPORTER AMANDA FUNG terrorist attacks, as well as the city’s overall economic REPORTER been in Astoria since 1932, closed e-mail: [email protected] recovery, at a special free Crain’s New York Business Covers Wall Street. e-mail: [email protected] for 11 days and lost almost $100,000 Covers the technology breakfast on Wednesday, Sept. 6. in revenue and inventory. Owner The breakfast, co-sponsored by the Partnership for LISA FICKENSCHER and telecommunications Charlie Marino says that most of his industries and online/digital New York City, will be held at Pace University as the SENIOR REPORTER customers, thinking that he would- e-mail: [email protected] advertising. kickoff to the university’s three-day Aftershock n’t have any fresh fish on hand, Covers tourism, restaurants, hotels. Conference, which will assess the impact of the Sept. stayed away the first week after he JULIE SATOW 11 catastrophe on the city, the state and the nation. The reopened. MATTHEW FLAMM REPORTER doors will open at 8 a.m., and the hour-long event will “We are going to be all right now SENIOR REPORTER e-mail: [email protected] begin at 8:30 a.m. A continental breakfast will be available. with the insurance money,”says Mr. e-mail: [email protected] Covers commercial real estate. Mr. Doctoroff will give an overview and then answer questions from Crain’s Marino, who was one of the few Covers media and entertainment. editor Greg David and Diana Williams of WABC. GALE SCOTT with specialized coverage. “I should TOM FREDRICKSON REPORTER Those wishing to attend the free event should register for the conference, not have to pay for something that SENIOR REPORTER e-mail: [email protected] although they will be able to attend only the breakfast if they wish. was caused and could have been pre- e-mail: [email protected] Covers hospitals and insurers, To register, go to www.NewYorkBusiness.com and click on “Events.” vented by the utility company.” Covers the banking and energy works on Health Pulse newsletter.

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August 28, 2006 | Crain’s New York Business | 19 typically are paid around 5% of the sterdam Theatre in 1997 after a ma- weekly gross, plus all expenses. jor renovation at a cost of $36 million, B’way shows play musical chairs Getting a theater owner to co- with the help of state and city grants. produce is perhaps the best way for a A commercial theater would cost Continued from Page 1 take their final curtain call shortly of waiting, Mr. Lane is negotiating show to secure a stage.The Nederlan- about $50 million to build today and cal, Princesses. “We’re in this new after the awards. to release Princesses via DVD or an- der Organization, which owns nine would have to be part of a larger com- golden age of theater. We’re break- That leaves few openings among other medium, putting a Broadway Broadway houses, has tongues wag- plex to be viable, Broadway execu- ing box-office records and have this Broadway’s 39 theaters.A number of run on hold. ging because it is keeping the sought- tives say. Producers are putting to- huge range on Broadway that we shows, such as Sister Act:The Musical With so many shows available, after Palace Theatre dark for almost gether a lobbying effort to win tax haven’t seen since the ’20s.” and Billy Elliot, are waiting in the convincing theater owners to book a a year to make it available for Legally breaks from the city, but the attempt On the other hand, the success wings for openings next spring and Blonde, which will open next spring. will take years and could founder. has created problems for producers, beyond, theater executives say. The In the meantime, musicals such who are being forced to cram musi- producers of Curtains,a musical star- ‘We’re in this Making trade-offs as Company and A Chorus Line are cals into smaller playhouses or even ring David Hyde Pierce that’s play- “we’re co-producing Legally stuffing themselves into playhouses postpone openings. They have ing in Los Angeles to rave reviews, golden age of Blonde and have been working on it in order to get in front of an audi- turned into vultures, waiting for ail- hope to move the show to Broadway for over two years,” says Nick Scan- ence. John Breglio, producer of A ing shows to go dark so they can in the spring if they can find a stage. theater not seen dalios, executive vice president of Chorus Line, waited until the last move into what is now the hottest the Nederlander Organization.“Un- possible moment to see which the- real estate in town. A theater in a haystack since the ’20s’ fortunately, that frustrates some of aters would be available for his show. “It’s getting more and more com- mr. lane has been trying since last our other friends.” Instead of a larger musical house, he petitive every day,” says James San- fall to find a theater for Princesses, Producers say that more Broad- settled for the 1,065-seat Gerald na, a producer of Grinch. which had a sold-out run in Seattle way musical houses need to be built. Schoenfeld Theatre. The standing-room-only sce- last August. He had hoped to win The most recent arrival is the $35 “That was the best theater avail- nario is compounded by the fact that the Imperial, which Dirty Rotten particular project is an act in itself. million Biltmore Theatre on West able at that time,” Mr. Breglio says. an unprecedented number of hits Scoundrels will vacate on Sept.3.But Owners consider a number of fac- 47th Street, which opened in 2004. “I’m lucky,because our running costs have been held over from the past the theater went to High Fidelity,a tors,ultimately looking for the show Built by the nonprofit Manhattan are a lot more modest than a few years. All of the musicals that musical about a record store owner with the most potential for suc- Theatre Club with donations,it also $15 million production’s. Those were Tony-nominated in June are and his love life, based on the book cess. Having a bankable star or a fa- received benefits because it is part of shows have no choice but to wait.” still going strong. Most years, at of the same title and its movie adap- miliar title—The Producers,say— a new condo development.The Walt least a couple of the losing shows tation starring John Cusack. Tired can clinch a deal. Theater owners Disney Co. reopened the New Am- COMMENTS? [email protected] Flower power hits New York hotels Continued from Page 2 for the Ritz-Carlton Central Park. droopy stems and suction out and rates continue to soar. the battle to prove who pampers Just six months ago, the St. Reg- replace the water in lobby vases at Investing thousands their guests the most. is weeded out its longtime florist least once a day. of dollars in decora- “The days of having a dozen ros- and doubled its floral budget when “We can’t allow the water to get tions that die after a es in a vase are gone,” says James it hired a loftier one. Scott Ger- cloudy,” sniffs Reed McIlvaine, a few days suddenly Blauvelt,executive director of cater- aghty, the hotel’s general manager, partner in Renny and Reed, the seems justifiable. ing at The Waldorf-Astoria. “That says he now spends more than florist for Jumeirah Essex House just doesn’t cut it anymore.” $500,000 a year on what he de- and the Four Seasons Hotel. Customer requests Now hoteliers are splurging on scribes as avant-garde flowers. No detail is too small. The Ritz- hoteliers say they rare orchids and a cornucopia of “I’m one of the highest Carlton Battery Park matches the are taking their cue other imported flowers, rewarding [spenders],” he confides. colors of the hard candies in a bowl from their discrimi- their biggest-spending customers The St. Regis has good compa- at the front desk to the hues in its nating clientele.Earli- with pricey arrangements in their ny. The Ritz-Carlton Central Park main floral arrangement in the cen- er this month, for ex- rooms. Some, including the St. says it is spending 25% more than ter of the lobby. ample, a guest at the Regis, have doubled their flower two years ago, while its sister prop- With room rates at these proper- uptown Ritz-Carlton budgets while others have begun erty downtown has increased its ties starting at $500 a night, guests planned to propose to

educating their staff—in daily flower budget 10% this year to about might think such niceties are de his girlfriend and buck ennis memos—about the proper names of $19,000 a month.The Waldorf-As- rigueur. However, a few years ago, asked the hotel to ALLEN HIGHFELD oversees decor at the Ritz-Carlton Battery Park. the flowers populating the lobby.As toria says its flower expenses have when tourism crashed after the ter- spread $1,500 worth the competition blooms, hotels are spiked 25% over the past 18 months. rorist attacks of 2001,hoteliers were of exotic white flowers dropping longtime florists like dead scrimping on fresh flora and hoping around his room for the occasion, lobby, Mr. Blauvelt says, “Flowers daisies in search of the most artistic No detail too small their guests wouldn’t notice. says Jacqueline Sanders, general are no longer just an arrangement; designers. part of the expense is the in- The current move toward bud- manager of the property. they are part of the architecture of a “They are looking for originali- creased maintenance these lavish get-busting bouquets comes as the At the Waldorf, which invests hotel.” ty,” reports Diggy Rodber, manager displays require. The florists have city enjoys a record number of visi- tens of thousands of dollars a year in of Jane Packer Flowers, the florist sentries standing by to remove tors and hotel occupancy and room the 1,000-flower display in its main COMMENTS? [email protected] Cuomo vulnerable Continued from Page 3 the most prominent black leaders. a tough campaigner.” Several came out last week in favor On the other hand, Mr. Cuomo of Mr. Cuomo—including city Marco Jeffrey Lexy Funk, David Gary O’Connell, Nordquist, remains popular upstate, where he Comptroller William Thompson Minuto Smalls Vahap Avsar Wender Zammit Contreras has campaigned heavily and where and Rep. Charles Rangel—which SEPT. 12 BREAKFAST his name recognition far outpaces surprised many insiders. Mr.Green’s.Mr.Cuomo can also rely African-American leaders re- on his vast network of union support fused to support Mr. Cuomo in CRAIN’S HONORS SMALL BUSINESS AWARD WINNERS to bring his voters to the polls. 2002, when he challenged state THE WINNERS OF CRAIN’S 11TH ANNUAL SMALL BUSINESS AWARDS will tell their stories at a breakfast on Tuesday, Sept. 12. Sean Patrick Maloney’s presence comptroller H. Carl McCall for the The event will be held at the Sheraton New York, at 811 Seventh Ave. A networking breakfast at 8 a.m. will be followed by in the race could help Mr. Cuomo. Democratic nomination for gover- a panel discussion. The program is co-sponsored by GHI. A former aide to Bill Clinton, Mr. nor. Mr. McCall was thought to be Among this year’s honorees are Lexy Funk and Vahap Avsar of Brooklyn Industries, who found they could do a better Maloney reached 10% in a poll last the first black candidate with a real job than others of selling their trendy fashions. Then there’s Jeffrey Smalls, who gambled that Smalls Electrical Construc- week and could draw large numbers shot at winning a New York tion could land larger jobs if it unionized. Charles Contreras, Clifford Nordquist and James O’Connell’s Just Bagels fac- of gay voters who would normally be statewide office. tory churns out chewy treats sold in stores nationwide, and David Wender of WhenTech invented a technology enabling expected to back Mr. Green. But it’s a new day for Mr. Cuo- options traders to do more efficient deals. Marco Minuto’s Red Castle Bakeries makes beef patties that are consumed A fourth candidate, housing ad- mo. “Campaigns become self-ful- everywhere from city schools to Virginia homes, and Gary Zammit created Clinilabs, a leader in the testing of new drugs. vocate Charlie King, isn’t expected filling prophecies,”says one political to pull votes from either front-run- consultant, “And most people ex- Tickets for the breakfast are $55, payable by credit card (AmEx, Visa or MasterCard only). To reserve seats, go to ner. Mr. King, who is African- pect Andrew to win.” www.NewYorkBusiness.com and click on “Events,” or fax a copy of your business card and your credit card info to “Small American, is polling at just 2% and Business Awards Breakfast” at (212) 210-0499. For more information, call the Crain’s Events Hotline at (212) 210-0739. has failed to win endorsements from COMMENTS? [email protected]

20 | Crain’s New York Business | August 28, 2006 BUSINESS TABLE TALK Le Cirque is a real show under the big top PAGE 23 karjean levinekarjean

GOTHAM GIGS Fit physician DR. ANNIE COLLIER, 32, an emergency room physician at Our Lady of Mercy Medical Center in the Bronx, shows all the symptoms of an adrenaline junkie. She is an attending physician in the ER (a job that pays in the $150,000 to $200,000 range), rides a motorcycle and plays forward for the U.S.A. Rugby Women’s National Team, which recently FOREHAND FRENZY: competed in the World Cup in Some die-hard fans Edmonton, Alberta. stake out territory early for the choice ACTION Dr. Collier sees fewer matches. stabbings and shootings than at some other ERs in her career. She enjoys interacting with patients suffering from everything from asthma attacks and severe chest pains to a bad cut. At 5 feet, 6 inches and 180 pounds, she is the formidable captain of the women’s squads of the New York Rugby Club and Northeast U.S. regional team. NO SLEEP Until recently, her schedule—four rugby practices a week and alternating 12-hour shifts heading up the ER—had been brutal. Fortunately, the hospital administration agreed to work around her rugby practices. —tom fredrickson

EXPERT OPINIONS

POWERING DOWN AT HOME gettyimages instant-on appliances such as TVs, computers or anything with a remote all draw some BY MIRIAM KREININ SOUCCAR juice when not in use. Each one costs only a couple of here are all sorts of ways to score a table at the cents per hour, but they all add Camping city’s top restaurants. But if you want a coveted seat at up to millions of dollars a year Zagat’s perennially top-rated Gotham Bar & Grill, in New York. Buying large offer the maître d’ tickets to the U.S. Open. appliances with an Energy Star rating helps avoid Two years ago, British tourists started talking wasting power, as does out at the tennis with Robin Gustafsson, Gotham’s gatekeeper. unplugging devices such as The next night they brought in tickets. She quickly phone chargers when not in found them a spot. use. For an air conditioner, “I am addicted to the U.S. Open,” Ms. Gustafsson make sure it’s the proper BTU U.S.Open for the size of the room, and admits. “I take days off, change my schedule around—anything to go as install a ceiling fan to make Tennis fanatics put life much as I can.” the air conditioner’s job easier TStarting today, Ms. Gustafsson and hundreds of others will crowd into the and save a few dollars. It can No. 7 train for two weeks to see the best players See TENNIS-OBSESSED on Page 22 cost as much as 25 cents an on hold for two weeks hour to run an air conditioner with 12,000 BTUs, which U.S. OPEN ATTENDANCE TOTAL OUT-OOF-TTOWNERS GENDER BREAKDOWN (2005) makes for a big electricity bill. —chris olert Last year’s event Spokesman 2005 659,538 2005 50% Women 58% Consolidated Edison broke records: 2004 639,000 2004 46% Men 42%

August 28, 2006 | Crain’s New York Business | 21 BUSINESS LIVES CORPORATE LADDER Reid Schuster Billboards’ big booster Titan’s head of sales, since 2002,may have a fancy new ti- tle, but his objectives remain the PERSONNEL FILE marketing aims to get same: to convince national and local advertisers to spend more on out- COMPANY Titan Worldwide advertisers to raise door advertising, to promote Titan’s TITLE President of sales aggressive sales culture to the staff and marketing outdoor spending and to win the rights to sell ads throughout transit systems across AGE 37 BY AMANDA FUNG the world. RÉSUMÉ Local sales manager, CBS Outdoor (formerly TDI); Going after print, radio dollars ack in 1992, Reid co-founder, Insite Strategies Corp. Schuster sold the idea of in a tough advertising market,Mr. sticking advertisements Schuster needs to be one heck of a KEY TO SUCCESS Passion on the sides of school salesman.Advertisers generally take BAD HABITS Impatience buses to private opera- money out of their print and radio and insomnia Btors and school districts from his budgets for outdoor ads, so Mr. one-bedroom apartment in Long Schuster and his staff must convince Beach, L.I. The idea grew into In- marketers and their agencies to er than competitors Clear Channel site Strategies Corp., the company spend on billboards and bus shel- Outdoor and CBS Outdoor, Titan he co-founded to broker the ads. ters. “We are competing for print manages to win accounts from big Five years later, Mr. Schuster and radio dollars,” he says. clients such as Sony Pictures,

went corporate. Despite the difficulties, the frag- Anheuser Busch and Continental buck ennis “I fell in love with the business,” mentation of radio and television Airlines. says the former entrepreneur, who audiences make it a good time for Titan’s growth these past four tracts away from CBS Outdoor and phia, Seattle, Orange County, closed his firm to join TDI, an out- the outdoor sector, he says. Indeed, years is due in part to Mr. Schuster’s other competitors,” says Titan Calif.,and the state of New Jersey,as door advertising company now according to the Outdoor Advertis- sales acumen.The married father of Chairman William Apfelbaum, well as in Ireland and the United known as CBS Outdoor. ing Association of America, spend- three is regularly the first one in at who had been chairman of TDI Kingdom.Next,the company wants In June,the New York City native ing on outdoor ads reached $6.3 bil- the company’s 850 Third Ave. of- while Mr. Schuster worked there. to control advertising rights for the was promoted to the newly created lion last year in the United States,up fices.He holds eight or nine face-to- “He is ferocious and fearless.He has Chicago and New York City transit role of president of sales and market- 8% from the previous year. face daily sales meetings,far exceed- more nerve than anyone else and systems.Titan will bid on those con- ing at Titan Worldwide, a smaller Manhattan-based Titan, which ing the corporate quota of five. In a would ask an advertiser for their en- tracts this fall. outdoor ad firm focused on public is backed by private equity firm coup for Titan, Mr. Schuster con- tire budget.” “We aren’t going to win them all. transportation ads, as well as bill- Welsh Carson Anderson & Stowe, vinced Internet phone provider All we want to do is sell and be the boards and telephone kiosks in se- says it posted $300 million in rev- Vonage Holdings to buy ads on Looking for more rights best at it,” says Mr. Schuster. “The lected markets,including New York. enues last year and that its revenues every bus in Seattle. currently, Titan has exclusive sky is the limit.” Mr. Schuster, who had been Ti- have doubled each year since it was “Once we got Reid, revenues in- rights to place ads throughout the tan’s executive vice president of sales formed in 2001.Though far small- creased and we won different con- transit systems of Boston, Philadel- COMMENTS? [email protected] Tennis-obsessed find Nirvana Continued from Page 21 Only 9% could be considered true Ms. Gustafsson even brings her in the world battle it out in Flushing, addicts: people consumed by tennis own food to avoid losing her seat.If a Queens. As this rite of late summer who follow the professional tour. By spectator leaves to buy a hot dog ($4) begins, even the most oblivious New comparison, fully half of all golf fans during a popular match, the stadium Yorkers can’t miss the media blitz. fall in that category,reports Octagon. fills up and he may not get back in. For a diehard group of fans,how- Admittedly, these enthusiasts ever, the event means hours of sit- will go through hellfire (or at least Following up-and-comers ting on bleachers in 90-degree late-summer heat and humidity) to most of these fans don’t care weather watching fuzzy balls flying watch their favorites. Many people about Andre Agassi’s last game or back and forth—to the detriment of stay from 11 a.m. to 11 p.m. Roger Federer’s serve. No, the true everything else, including work, The zealous prefer to go during aficionado displays inside knowl- family and friends. the first week,when they can see top edge by following an unknown like WHO NEEDS CENTER COURT? “I count the days until the U.S. Fernando González of Chile. Hard-core fans prefer seeing players up close and personal Open all year,” says Susan Graham, That No. 14-ranked player is on the outer courts. director of education at Walch Pub- ‘I count Bob McIntosh’s latest must-see. lishing in Portland, Maine, who “I’m partial to the Spanish and Ar- started going to the tournament the days until gentinean players because they use with her dad when she was 10. “For topspin grips,” he says. Mr. McIn- SAVING DUCATS AT THE U.S. OPEN me,this is better than Christmas and the U.S. Open tosh, who helps run a program for Forget Arthur Ashe Stadium. Tickets to the grounds cost $48 and can my birthday and a family holiday.” mentally retarded adults in Read- get you into every other court. Interest and attendance in the all year’ ing, Pa., has been attending the first Grand Slam tournament is grow- five days of the Open for 15 years. Take food from home. Security will allow you to bring it in as long as ing. Attendance broke a record last Another sign of the hard-core fan it’s in a small plastic container. year, and overall TV viewership was is boasting about having seen now- Freeze a bottle of water the night before. It stays cold longer, and you up 6% from 2004. major stars play on the outer courts can fill it from the 36 water fountains on the grounds. stars on the smaller outer courts. when they were nobodies.Mr.McIn-

Casual fans and fanatics Navigating the venues, which have tosh watched Andy Roddick play his gettyimages still, most fans aren’t as passionate no reserved seats, can be as compet- first competitive match at the Open. as Ms. Graham. Octagon, a sports itive as a fifth-set tiebreaker. “It was just me and his parents sitting year, usually alone. He says none of ity dims in relation to great tennis. and entertainment marketing com- “It’s like a race when I walk in the there at 8 at night,” he recalls. his friends share his devotion. “The Open’s fun, so I’m not go- pany in Norwalk,Conn.,found that door,” says Ms. Graham, who plans Eric Cohen, chief executive of He prides himself on having seen ing to stress myself out on who I see 51% of tennis fans love the game to sit through every session, includ- Pitbull Entertainment,a music-pro- Michael Chang make the main draw or don’t see,” he explains. “A great and would spend at least one day at ing evenings,for five straight days.“I motion company, started going to for the first time, Steffi Graf become match is a great match whether it’s the U.S. Open. Another 40% con- download the draw sheet for the day the U.S. Open when he was 13. Mr. the Grand Slam champion, and Jen- a name or not.” sider it entertainment and are most and strategize which matches I’m Cohen, now 34, attends at least five nifer Capriati play her first match interested in players’ personalities. going to see and where I need to go.” day and seven night sessions each at age 12. But he says that star qual- COMMENTS? [email protected]

22 | Crain’s New York Business | August 28, 2006 BUSINESS LIVES TABLE TALK by Bob Lape Cirque classics—bouillabaisse, cous- and olives for space. seating, and superb fare make this cous royale, flounder, rabbit with Among meats, apricot-scented a major attraction at Rock Center. Riesling, whole roasted fish and braised lamb shoulder proves an ad- choice cuts of meat. mirable taste composition of gener- Buddakan ★ ★ ★ Once patrons get past the bland ous proportions. 75 Ninth Ave. (between West 15th amuse-bouche, excellent appetizers The cheese cart holds ripe and and West 16th streets), Manhattan. await ($19 to $38). ready goodies.Desserts ($12 to $14) (212) 989-6699. A must-see $10 mil- A trio of day-boat sardines are are rambunctiously fun. The crème lion Asian showplace with far bet- prepared sweet and sour, Niçoise- brûlée recipe is printed on the bot- ter food and service than one style, and grilled. Threesomes also tom of the ramekin, a risky invita- would expect at a white-hot eatery. rule with vine-ripened organic tion to pilfering. Egi Maccioni’s tomatoes: in gazpacho with tomato cream-filled bomboloni are delight- Dona ★ ★ ★ sorbet; in crispy cannelloni; and ful, and a mango-centric “pot-au- 208 E. 52nd St. (between Second stuffed with veal, chicken and fresh feu” is served over dry ice, which and Third avenues), Manhattan. herbs. The kitchen also multiplies lends a steamy shot of drama to the (212) 308-0830. Two hard-charging sweet peas and wild mushrooms by proceedings. young restaurateurs, Donatella three: in cold soup, in pea ravioli In fact, the only thing missing in Arpaia and chef Michael Psilakis, with almond mushrooms, and in two visits was anyone with the name join forces in this sexy “first-gener- casserole of peas à la Française. of Maccioni. It must be summer. ation Mediterranean” hit. Capers accent flavorful ravioli stuffed with salt cod; other pasta COMMENTS? [email protected] Valbella ★ ★ ★ specials resonate with harmonious 421 W. 13th St. (between Ninth tastes and impeccable execution. Avenue and Washington Street), Summer seafood sparkles across BEST OF BOB LAPE Manhattan. (212) 645-7777. the board, from Icelandic cod blan- A dramatic debut in the meatpack- keted with mussels and razor clams Reviews of spots that have earned ing district for one of Connecti- and rounded out with chorizo and three stars or more this year. cut’s top-rated Italian restaurants. herbs to spectacular soft-shell crabs Owner David Ghatanfard makes simply sautéed in butter and savory Del Posto ★ ★ ★ ★ his case with thousands of wines, seasonings. A seven-herb crust ele- 85 10th Ave. (between West 15th the finest ingredients and customer vates red snapper to the sublime,and and West 16th streets), Manhattan. cosseting. ■ Mozambique langoustines are (212) 497-8090. Mario Batali, Lidia sweet and succulent in a bath of gin- and Joe Bastianich, 22,000 square ger, red curry and kaffir lime sauce. feet of retro elegance, 1,200 wines, Branzino gets a stuffing of and the nicest salute to the Italian shrimp, octopus and calamari and palaces of the 1950s that you will an accent of star anise jus. Lightly ever encounter. seared bluefin tuna is top of the line. ★ ★ ★ ½ buck ennis On one occasion the dish was too Quality Meats NO RAIN ON HIS PARADE: Sirio Maccioni has been running celebrity-magnet restaurants for busy,though, with orange slices and 57 W. 58th St. (between Fifth and decades. The latest incarnation of Le Cirque reportedly cost $18 million to put together. fava beans fighting with sun-dried Sixth avenues), Manhattan. tomatoes, capers, cucumber, potato (212) 371-7777. New American food, plus great service and wines in a set- ting that suggests a high-design meat locker. A skillful blend of Le Cirque gets downtown style and uptown finesse. Bengal Tiger ★ ★ ★ 144 East Post Road (between Court Street and Mamaroneck all 3 rings going Avenue), White Plains. (914) 948-5191. Simson Kalathara’s Office & Retail 95-seat dining room. The all-glass 31-year romance with White Plains Strong on old-school bar, which appears and disappears results in the best Indian restaurant Availabilities: star power, spot does like something out of The Illusion- outside New York City. ist, anchors another 65-seat area. A 212.594.2700 classics and seasonal mezzanine party space can accom- Brasserie Ruhlmann ★ ★ ★ slgreen.com modate 80 guests. 45 Rockefeller Plaza, W. 50th St. dishes equally well No longer hamstrung by a his- LE CIRQUE (between Fifth and Sixth avenues), toric space, designer Adam Tihany 151 E. 58th St. Manhattan. (212) 974-2020.The Reaching New Heights. ining in the new Le and architect Costas Kondylis are (212) 644-0202 grand Art Deco interior reflecting Cirque in the new unbound and inspired by Alexander ★★★ Paris in the 1920s, casual outdoor Bloomberg Tower, at Calder’s mobiles. Le Cirque’s (met- One Beacon Court, is al) monkeys scampering up a central CUISINE French a hoot. post strike a whimsical note, but WINES 710 choices, 28 by the DService is a dense, multifaceted poshness rules.Polished ebony pan- glass; sommelier The Roofing System that pays affair, and the cuisine is as classic or els gird the semicircular room, creative as the diner wishes. Star- where glittering silver and glisten- DRESS Jacket required for itself in under 5 years! gazing? Always.A recent visit found ing crystal reflect candlelit tables. NOISE LEVEL Moderate another professional watcher, Sommelier Isabelle Husser moves PRICE RANGE $25-$48; Designed to withstand Hurricane Cindy Adams,at a banquette not far purposefully around the room, mak- 6-course tasting menu, $135 from Carolina Herrera. Nearby was ing careful matches from the 700- Conditions, a sprayed polyurethane restaurant tycoon Jeffrey Chodor- bottle wine list. WINE MARKUP 85%-300% foam roof will be your final roof! ow. Downtown dining magnate Benito Sevarin and Mario Wain- CREDIT CARDS All major Harry Poulakakis was sighted on er, Mr. Maccioni’s main men, roll Call us for more information. another evening. out the red carpet with grace and RESERVATIONS Recommended Foodies abound, and regulars charm, keeping the hospitality me- HOURS Lunch, Mon.-Sat., 11:45 bask in the elegant glow emanating ter pinned on “full ahead.” Should a a.m.-2:30 p.m.; Dinner, Mon.-Sat., from the gorgeous, 27-foot tented guest arrive sans jacket, he can 5:30-11 p.m., Sun., 5:30-10 p.m. WeatherTight ceiling. It suggests the big top of choose from a rack of Stefano Roofing, Inc. ★★★★= Outstanding the dining circus that ringmaster Ricci-designed garments. 74 Tall Oaks Drive ★★★= Excellent Wayne, NJ 07470 Sirio Maccioni has orchestrated for Executive chef Pierre Schaedelin’s ★★= Very good 32 years. And, given the restau- smartly seasonal menu is modestly ★= Good TOLL FREE rant’s reported cost of $18 million, proportioned to suit contemporary A GE Certified Applicator 877-893-9200 the ceiling is indeed a big top over a dining. And there are always the Le

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