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Crain's New York Business WITHERING HEIGHTS LUX CONDO SALES STALL OUT CRAIN’S® NEW YORK BUSINESS PAGE 3 VOL. XXXI, NO. 1 WWW.CRAINSNEWYORK.COM JANUARY 5-11, 2015 PRICE: $3.00 2015 ECONOMIC OUTLOOK Year of the Bezos newscom The most disruptive force in all of NY business may be the dude from Seattle Fort Greene neighborhood in the fall. while resorting to kneecapping in e-book company’s recently launched one-hour deliv- BY MATTHEW FLAMM The new service is the latest move by Ama- price negotiations—is also becoming a player ery service in Manhattan. And Amazon Pay- zon to disrupt a New York industry and chal- in TV programming. Last year, Amazon ments holds the long-range prospect of be- Despite getting battered in the press over his lenge existing players—in this case, home- gained critical success for its original comedy coming a financial-services player. latest fights with book publishers, and beaten town online grocer FreshDirect. The Seattle Transparent, and scored exclusive streaming Mr. Bezos may just be one of New York’s up on Wall Street for continuing to lose based e-tailer has also pushed Macy’s and deals for shows from HBO and CBS. most important chief executives, even if he money, Jeff Bezos may still be on track to take Bloomingdale’s into experimenting with It’s also putting the moves on apparel as it happens to live in Seattle. over the world. At least he is conquering New same-day delivery, and has pressured Barnes beefs up its Amazon Fashion site, with the Ms. Aydintasbas, who has her own public- York City, one dinner table at a time: Brook- & Noble into closing 68 bookstores during the help of fashion shoots in its 40,000-square- relations company,still shops with FreshDirect, lyn mother-of-two Defne Aydintasbas now past five years. foot studio in Williamsburg, Brooklyn. In ad- though less so since AmazonFresh arrived. buys her organic vegetables from Amazon- The frenemy of New York publishers— dition, a recently leased 12-story building on Whether there’s room in the New York market Fresh, which began delivering groceries in her selling more of their books than anyone else West 34th Street will serve as a hub for the See AMAZON on Page 14 01 5 OUR ANNUAL TAKE ON CITY’S GROWTH PROSPECTS From tech to Greg David: Why Wall Street tourism: Where the NYers are down wallflowers: Still jobs are, aren’t despite economy’s waiting after all NEWSPAPER 71486 01068 PP. 11, 12, 13 upswing P. 11 these years P. 14 0 EDITOR’S NOTE Righting wrongs FYICRAINSNEWYORK.COM “This has aged well,” economics writer Matt O’Brien sarcastically tweeted last month with a link to a Chastened mayor treads March 2009 article in The Wall a thin (blue) line Street Journal headlined “Obama’s Radicalism Is Killing the Dow.” he point-blank assassination of two This was on the day the Dow Jones police officers shocked a city and industrial average closed above chastened a mayor who came to office Glenn Coleman T New York Police Department 18,000, after third-quarter GDP to reform the .In the two weeks following the shooting, Mayor growth had been adjusted upward Bill de Blasio to 5%. Looking back has its charms, especially when kept his profile low, abstaining facing the more challenging task of looking forward, from taking reporters’ questions while working newscom as we do with this week’s 2015 Economic Outlook. to heal a rift with officers who felt the mayor So, I revisited last January’s outlook to see how we did not appreciate the inherent dangers of their profession. It was a turnaround from days earlier. fared for 2014. We wrote: “The city will add 67,300 After the decisions by two grand juries not to indict police in the deaths of two African-American jobs this year, according to an estimate by the men, the mayor described “a new era” of New York policing, one focused on helping “our officers build trust with the citizens.” Mr. de Blasio personalized his own distrust, describing the Independent Budget Office, a number that is a Dante modest drop from the 75,100 that the IBO projects conversations he’s had with his biracial son, , about the need “to be careful and cautious and were added in 2013.”Turns out New York City added not to make a sudden move” when dealing with police. On Dec. 20, Ismaaiyl Brinsley murdered about 90,000 jobs in the year just ended. Best. officers Wenjian Liu and Rafael Ramos, and the simmering frustration felt by police boiled over. Commissioner Bill Bratton came to the mayor’s defense, as did Brooklyn Borough President Eric Correction. Ever. Right? We were hardly alone in Adams underestimating the strength of New York City’s , a former police captain and co-founder of 100 Blacks in Law Enforcement Who Care. In continued recovery, now entering its sixth year of New York, low crime is now the baseline for any successful mayoralty. An alienated Police outperformance compared with the U.S. economy. Department puts that at risk. A Dec. 29 police graduation ceremony underscored the challenge of And as columnist Greg David observes on Page 11, gaining the trust of the rank and file.The mayor called their choice of profession heroic, noble, the city’s latest growth wave has been lifting local courageous. His heaps of praise were met with polite applause and a few jeers. —jeremy smerd wages—finally—with median family income up 3.5% UPSTATE CASINOS. A state board unemployment rate down 0.1%, to in 2013, the latest year for such data.That’s right: real picked sites in the Catskills, the Fin- 6.3%,in November from a month ear- HOORAY! wage growth, smack in the middle of the city’s income ger Lakes and Schenectady for the de- lier—the fifth consecutive monthly THE METROPOLITAN TRANSPORTATION velopment of Las Vegas-style casinos. drop. … ONDECK IPO. The Manhat- AUTHORITY spectrum, that happened before Bill de Blasio’s tale of The winners are expected to generate tan-based online small-business launched an ad campaign to two cities got him elected mayor. It also was four times more than $300 million in tax rev- lender, a Crain’s Fast 50 company and combat what the rest of the country saw. New York’s enue—far less than if sites closer to the one of the Best Places to Work, went “manspreading” city had been picked. … FRACKING public Dec. 16 at $20 a share. On- and other subway- remarkable economic progress should continue in etiquette ills. BAN. Gov. Andrew Cuomo banned Deck’s $1.32 billion market-cap debut 2015. Hot streaks inevitably fade (see Daniel Geiger’s hydraulic fracturing after four years of was the biggest for a venture-backed Page 3 story on prices for plutocrat condos), but the delays and study, concluding that the New York City tech company since OY VEY! economic benefits did 1999. … MET OPERA latest IBO projection has the city adding “just under A WEEK AFTER not outweigh the HITS LOW NOTE. PLEADING GUILTY 80,000 jobs” in 2015. I sure wouldn’t mind being on health and environ- ‘It’s arrogant, Moody’s Investors to tax-fraud charges the right side of wrong again this time next year. mental risks, not to Services downgraded and stating he certainly, to would not step mention the political the Metropolitan down, U.S. Rep. ones,of the controver- somehow Opera Association’s Michael Grimm, a THIS WEEK IN CRAIN’S sial gas-well drilling credit rating to Baa1 Staten Island FASH- present Republican, said he technique. … from A3.The compa- will resign Jan. 5. ION WEEK GETS THE ny, plagued by labor ap images; mta IN THE BOROUGHS-------------------------- themselves as 3 BOOT. The twice- disputes, reported an IN THE MARKETS ----------------------------------4 yearly event was or- the reformers operating deficit of the week ended Dec. 28. Producers of dered to vacate Dam- $22 million for the The Elephant Man announced the SMALL BUSINESS ------------------------------5 rosch Park at Lincoln in this fiscal year ended July show recouped its $3.1 million capi- THE INSIDER -----------------------------------------------6 Center after its eight- situation’ 31, compared with talization costs after only six and a half day extravaganza in $2.8 million a year weeks. … NYC RUNS ON DUNKIN’. BUSINESS PEOPLE ---------------------------7 —Brooklyn Assemblyman February. Organizer Jim Brennan, referring earlier. … PATH TRAIN With 536 locations in the five bor- REAL ESTATE DEALS -----------------------9 IMG Worldwide is to Govs. Andrew Cuomo CUTS. Trains between oughs, Dunkin’ Donuts is the largest looking for a tempo- and Chris Christie, who New Jersey and New national retailer in the city for the OPINION --------------------------------------------------------10 rary home until it can vetoed a bill overhauling York may go private seventh year in a row, according to an ECONOMIC OUTLOOK---------------11 move into the Culture the Port Authority under a new recom- annual Center for an Urban Future Shed, the Hudson in favor of their own FLORIDA PASSES NY. NEW YORK, NEW YORK GREG DAVID--------------------------------------------11 mendation. Over- survey. … The Troy Dixon is one of the Yards performing- changes night service would Sunshine State, with 19.9 million res- CLASSIFIEDS ----------------------------------------- younger people joining 16 arts venue that is slat- also be eliminated. … idents,stripped New York of its title as JOBLESS BROADWAY BOOM. nonprofits’ boards. P. 21 SOURCE LUNCH --------------------------------22 ed for completion in 2018.… Five shows, in- the third most-populous state,accord- RATE DIPS. A surge in holiday hiring cluding Aladdin and It’s Only a Play, ing to the U.S.
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