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Fresh, which began delivering groceries inher groceries begandelivering which Fresh, herorganicvegetablesfrom Amazon- buys DefneAydintasbas mother-of-two lyn now Brook- onedinnertable atatime: York City, New Atleastheisconquering over theworld. totake beontrack maystill JeffBezos money, up on Wall forcontinuingtolose Street andbeaten latest fightswithbookpublishers, Despite gettingbattered inthepress over his BY MATTHEW FLAMM newscom VOL. XXXI,NO.1 NEWSPAPER Seattle inallofNYbusinessmaybe thedudefrom force The mostdisruptive CRAIN’S WWW.CRAINSNEWYORK.COM E OKBUSINESS YORK NEW Y ear of the Bezos Year the of selling moreselling oftheirbooksthananyone else past fiveyears. 68bookstoresthe & Nobleduring intoclosing andhaspressured Barnes same-day delivery, Bloomingdale’s with intoexperimenting based e-tailerhasalsopushedMacy’s and TheSeattle town onlinegrocer FreshDirect. home- lenge existingplayers—inthiscase, aNew to disrupt Yorkzon andchal- industry Fort Greene inthefall. neighborhood 2015 ECONOMICOUTLOOK The frenemy ofNew York publishers— isthelatestmove byAma- service The new OUR ANNUALTAKE PROSPECTS GROWTH ONCITY’S PP. 11,12,13 jobs are,aren’t tourism: Wherethe From techto West asahubforthe serve will 34thStreet buildingon leased12-story arecently dition, Inad- Brooklyn. foot studioin Williamsburg, help offashionshootsinits40,000-square- withthe Fashion upitsAmazon beefs site, deals forshows from HBOandCBS. streaming andscored exclusive Transparent, comedy successforitsoriginal gained critical Amazon year, Last in programming. TV negotiations—isalsobecomingaplayer price ine-book tokneecapping while resorting It’s alsoputtingthemoves onapparel asit ® upswing despite economy’s NYers aredown Greg David: Why P. 11 P. PAGE 3 STALL OUT SALES LUX CONDO HEIGHTS WITHERING Whether there’sWhether room intheNew York market though lesssosinceAmazonFresh arrived. relations company,still shopswithFreshDirect, happens toliveinSeattle. ifhe even executives, chief most important player.coming afinancial-services prospectments holdsthelong-range ofbe- Pay- AndAmazon inManhattan. service ery company’s one-hourdeliv- launched recently s yitsa,whohasherown public- Aydintasbas, Ms. mayjustbeoneofNew Bezos York’s Mr. these years years these all waiting after Still wallflowers: Wall Street JANUARY 5-11, 2015 PRICE:$3.00 See AMAZONonPage14 P. 14 P. 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. Census Bureau. CORRECTION pushed the city’s seasonally adjusted reported record-breaking ticket sales —amanda fung News of Nat Hentoff’s death in Alair Townsend’s Dec. 15 “Remembering those we lost in 2014” was, as Mark Twain would have put it, greatly exaggerated. The writer, critic and record producer, 89, indeed remains among the living.

vol. xxxi, no. 1, january 5, 2015—Crain’s New York Business (issn 8756-789x) is STORIES TO WATCH THIS WEEK published weekly, except for double issues the weeks of June 29, July 13, July 27, Aug. 10, Aug. 24 and Dec. 21, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Post- Jan. 5: Bribery trial Jan. 6: Nobody Jan. 8: Bed Bath & Jan. 12: Bid master: Send address changes to: Crain’s New York Business, Circulation Department, 1155 of state Sen. Beats the Wiz Beyond reports deadline for Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379.Fax (313) 446-6777.$3.00 a copy,$99.95 one Malcolm Smith, co-founder Marvin fiscal 2014 3Q auctioning assets year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. D-Queens, begins. Jemal goes to prison earnings. of bankrupt New for bank fraud. York City Opera

2 | Crain’s New York Business | January 5, 2015 IN THE BOROUGHS High-end condos hitting headwinds STATEN ISL.

Some of the city’s 157 W. 57TH ST. 210 W. 77TH ST. Retailers most expensive units are now struggling make BID to attract buyers for visitors

BY DANIEL GEIGER With mall and Ferris fter three super-heated wheel coming, shop years,the market for the city’s priciest new con- owners join forces dominiums appears to be cooling off a bit. In 45 E. 22ND ST. Arecent weeks, signs of the chill have BY CARA S. TRAGER even popped up at One57, the bell- wether of the nosebleed niche. At A growing gaggle of Staten Island’s that 75-story spire overlooking Cen- stores and restaurants are getting tral Park at 157 W. 57th St., just one their acts together. The borough, unit changed hands in the third quar- which has only two city-chartered ter of 2014—only the third apart- business improvement districts— ment at the tower to sell last year. versus 23 across the Verrazano One57 joins an expanding list of Bridge in Brooklyn—will likely get properties where buyers are flinch- its third in the spring. Meanwhile, ing at prices that, like some of the business leaders are laying the towers themselves, have reached groundwork for two others. unprecedented heights. The grow- The amply demonstrated abilities ing crush of high-end projects has of BIDs across the city to police, increasingly prompted buyers to 12 E. 13TH ST. clean up and promote their turfs have thoroughly shop for their options. provided much of the inspiration,but All of this comes at a time when so too has fear. On Staten Island, lo- plummeting oil prices are hitting cal merchants face a double-barreled high-rolling buyers from Russia and threat: the growing popularity of on- the Middle East, just as a slowdown line shopping as well as a recently un- in the Chinese economy is giving veiled plan by the island’s largest- purchasers from that country pause. by-far brick-and-mortar operator, “We have some new develop- the Staten Island Mall, to expand by ments that are beautiful but are ag- more than a third, to 1.7 million gressively priced, and we’re seeing a square feet. That is on top of the buyer pushback,” said Stephen opening of a 150,000-square-foot Kliegerman, president of Halstead Target, the second on Staten Island, st.com; kpf; juul-hansen naftali thomas Property Development Marketing, 3 in 2013, and the expected arrival of who pins much of the blame on sup- 12e1 BJ’s Wholesale Club. OVERPRICED? Just one super-luxury apartment at One57 ply. “There is a lot of product com- sold in the third quarter, while there have been no confirmed “Staten Island is a place where the ing out at the high end of the mar- sales at 210 W. 77th St., 45 E. 22nd St. and 12 E. 13th St. majority of the people drive, so get- See CONDOS on Page 19 See SHOPS on Page 19 Media industry finds revenue STATS AND THE CITY by Nicholas Wells HEALTHY HEMP: Last month, the state released medical-marijuana rules that will be hashed out over the next few weeks. There’s also a long-shot bill for recreational use. in places it once scorned For now, at least in NYC, people found with up to 25 grams of weed can avoid arrest.

NUMBER of low-level marijuana arrests in NYC from ion magazine into what he called a price, readers are moving to mobile 25,922 January through November 2014, 4.5% fewer than in New Republic’s “vertically integrated digital media devices—which have less room for the same period in 2013 move to NY reflects company” is understandable: The ads—and ad agencies have new and changing approach ground beneath the media industry cooler places to invest a client’s mon- APPROXIMATE NUMBER of joints that could be made is shifting with alarming speed. ey, like Twitter and Instagram. 31 with 25 grams of pot to tap digital dollars At the same time, for the right kind of digital media property, ex- COST perts see more reason for optimism MAXIMUM AMOUNT of a two- of THC allowed in $200K BY MATTHEW FLAMM than in past years. Atlantic Media, 10MG year license to grow and Gawker Media and Slate, to name a one dose of marijuana under the state’s distribute medical marijuana proposed regulations, four times the in New York under the Of all the convulsions that shook the few,are all profitable and growing, as quantity used to increase media industry in 2014,perhaps none they draw on different revenue proposed legislation, on top appetite in cancer of a $10K application fee provided more drama than Decem- streams and build an advertising patients ber’s mass exodus of editors at The business in the face of competition New Republic magazine, the Wash- from Facebook and Google. Even ESTIMATED ington, D.C.-based shuttle-class sta- The New York Times,despite its latest annual tax ple that,at least in print,has more peo- round of layoffs last month, has seen revenue$25M in NYC, if recreational ple reading about it than reading it. buck ennis digital ad growth for three quarters in marijuana were legalized Chris Hughes, the Facebook co- FRESH START: Chris Hughes is moving The a row and, at last count, a double- founder who bought The New Re- New Republic’s headquarters to New York. digit increase in online subscriptions. public in 2012 and is moving its “There is a way forward,” said Sources: Office of the Governor of New York, Mayo Clinic, nyc.gov, NYS Division of Criminal Justice headquarters to New York, may or Print ad revenue continues to Ken Doctor, media analyst for Out- Services, High Times, NYC Independent Budget Office may not prove to be in the wrong slide,digital ad dollars are under pres- sell, “if you do a lot of things right.” istockphoto business.But his desperation to turn sure from automated exchanges that Among the changes from just ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY a century-old, money-losing opin- find the best audience at the lowest See MEDIA on Page 20

January 5, 2015 | Crain’s New York Business | 3 Photo Credit: Buck Ennis, Crain’s New York Business CRAIN’S IN THE MARKETS arts&&ccuultulturree by Aaron Elstein BREAKFAST

Join us as we sit down with New York’s cultural thought Wednesday, March 4, 2015 leaders to discuss the vision and priorities for one of New

York’s thriving industries and the vital role the industry Con Edison Conference Center bloomberg news plays on driving the city’s economy. 4 Irving Place Armchair Discussion 8:00 a.m. – 8:30 a.m. Networking Breakfast A few beefs about Jed Bernstein, President, Lincoln Center for the Performing Arts 8:30 a.m. – 10:00 a.m. Program Armchair Discussion Early Bird Pricing: Shake Shack’s IPO Majority Leader Jimmy Van Bramer, Chair, Cultural $95 for individual ticket(s) Affairs and Libraries Committee, New York City Council $950 for priority reserved tables of 10 n the Sunday after Christmas, a line at the Shake Additional speaker to be announced. Early bird pricing ends January 12 Shack near Times Square snaked out the door. You must be pre-registered to attend this event. Tourists seemed delighted to wait for a burger and No refunds permitted. O Register Today For more information: fries even though it was past 9:30 p.m.They snapped photos >> Adrienne Yee of people chowing down inside and took selfies in front of www.crainsnewyork.com/events-artmarch015 Phone: 212-210-0739 Email: [email protected] the restaurant’s neon sign. Sponsored by: That kind of enthusiasm helps explain why the next morning Shake Shack Inc. filed to raise $100 million in an

initial public offering. within 12 months, as the company For sponsorship information, contact Joanna Harp Founded by Chairman Danny drily puts it in its prospectus. That at 212-210-0278 or [email protected]. Meyer 14 years ago as a kiosk in helps explain why same-shack sales Madison Square Park, Shake growth declined to 1.2% in the Shack has expanded into an outfit third quarter from 8.2% in the year- with $84 million in revenue and earlier period. Shake Shack aims t $3.5 million in net income through o counter that sales trend by open- the three quarters ended Sept. 24. ing more locations. The Durst Organization congratulates The company owns or licenses Second, a slug of the IPO pro- 63 restaurants in nine countries and ceeds are to be used to pay down plans to use IPO proceeds to grow debt that Shake Shack took on to into one of those distinctive New provide a $21.9 million distribu- York retail experiences—for exam- tion last month to its owners, on the relocation of their New York Headquarters ple, Tiffany & Co.—that plays well which include private-equity firm elsewhere. Leonard Green & Partners and Mr. and Flagship Showroom and Concert Hall to A burger boom underway since Meyer. The payments mean less the end of the Great Recession has money to build new restaurants 1133 Avenue of the Americas. spawned a glut of alternatives,some and renovate existing ones. It isn’t of which have cashed in on the clear why Shake Shack’s owners trend by going public. Given the wanted to pocket some cash ahead lines at Shake Shack’s restaurants, of the IPO if the company’s an IPO might make sense. prospects are so robust. Our appreciation to Richard Bernstein, Susan But most of the growth in the Interestingly, while Shake burger biz in the past few years has Shack positions itself as offering Kahaner & Jennifer Ogden of Cassidy Turley been fueled by independent opera- better burgers than the fast-food tors,not chains like Shake Shack,ac- giants,its higher prices don’t trans- for this 40,510 SF transaction. cording to market-research compa- late into healthier profits. In fact, ny NPD Group. So before you line the company’s operating margins up to buy the stock, chew on this. of 25% are inferior to the 30% mar- First, Shake Shack seems to gins at McDonald’s, according to have trouble keeping customers. Bloomberg data.That’s in part be- New locations tend to open with a cause rental costs swallow 8.1% of bang thanks to heavy marketing, Shake Shack’s revenue, compared but then the circus moves on and with 6.7% for the Big Mac guys. sales “decrease to stabilized levels” Just some food for thought. Ⅲ

INCREASE in JetBlue’s stock price last year, its 84%best performance since Additional Rental Opportunities Available the company went public in 2003. Airline Please contact: Tom Bow [email protected] 212.257.6610 stocks in general soared last year as fuel prices

bloomberg news plunged and traffic remained robust. Rocco Romeo [email protected] 212.257.6630 SMALL BUSINESS City sees rise in minority contracting Owners say access Services recently announced that $3 million range—won a $62,000- companies, capitalized by Goldman the city had awarded $690 million in plus deal with the Department of Sachs’ 10,000 Small Businesses pro- to financing remains prime and subcontracts to certified Housing Preservation and Devel- gram and the Surdna Foundation, a M/WBEs in fiscal 2014, a 57% in- opment to provide telecommunica- Manhattan-based nonprofit that biggest roadblock crease from the year before. tions software. works to build sustainable commu- “We have helped significantly But Ms. Abrahams-Gibson also nities. “There’s a lot more focus on increase the amount of contracts recently had to give up a $96,000- this issue,and I believe it’s starting to BY ANNE FIELD awarded to M/WBEs in the past fis- plus contract when a lender, includ- pay off,”said Nancy Carin,executive cal year,” said SBS Commissioner ed in a list of recommended institu- director at BOC Capital, which has ngela Abrahams-Gib- Maria Torres-Springer in an email. tions compiled by the city,ran out of been lending for more than a decade. son worked hard to learn To that end,SBS has added to ex- money and wasn’t able to provide the ropes of winning city isting training programs, such as an her with $100,000 she thought she Less red tape contracts at Abrahams eight-month class on the basics of could borrow. “The city is trying to That money came in handy for buck ennis Consulting, an IT serv- running a construction business,with help, but we still have to contend Anderson Inniss, owner of Inniss FAST TRACK: Contractor Nayan Parikh says Aices firm in Jamaica, Queens, that is other “capacity-building”workshops. with heavy obstacles,” she said. Construction, a Hollis, Queens- city officials offer speedier help these days. also a hardware and software reseller. For example, in 2015, it will offer a As a result of such challenges, based, six-employee general con- But now she is breathing a little easi- workshop for construction compa- only a small portion of the $17 bil- tractor that he says has revenue in er, as a result of the de Blasio admin- nies on how to get bonding. lion the city spends on goods and the $1 million to $3 million range. dent of 15-employee Ashnu Inter- istration’s stepped-up focus on help- services annually goes to minority Still feeling the pinch from the national, a Woodside, Queens- ing minority-owned firms like hers Contending with obstacles and women-owned enterprises, ac- economic downturn, the profitable based general contractor, has won bid on projects successfully. There are still stumbling blocks cording to a recent report by Comp- company recently took out a about $7 million in city contracts. If She has noticed that navigating for minority contractors, of course. troller Scott M. Stringer’s office.To $120,000 loan from BOC Capital. payment is delayed,Mr.Parikh said, the city’s bureaucracy has gotten Ms. Abrahams-Gibson, for one, said bridge the gap, a number of tradi- That funding allowed him to take on he has an easier time finding high- speedier. “I see more accountability, it can be hard to find a bank willing to tional lenders and Community De- a $380,000 bathroom renovation level officials to help rustle up a because people know there’s a direc- give her a loan, because she keeps lit- velopment Financial Institutions,or project for SUNY Downstate Med- check. “I’m very encouraged,” said tive from above,” she said. tle inventory.That is despite her suc- CDFIs,which make loans in under- ical Center in Brooklyn. “This gave Mr. Parikh, who said his profitable Ms. Abrahams-Gibson, whose cess in winning $1.1 million in 59 served markets,have heightened ef- me money to get things off the company has revenue above $5 mil- firm is certified as a Minority and contracts from the city since getting forts to address financing obstacles. ground,” said Mr. Inniss. lion. “This didn’t happen before.” Ⅲ Women-Owned Business Enter- certified as an M/WBE with the city Take BOC Capital Corp.,a non- Some M/WBE small-business prise, or M/WBE, is among a num- and state in 2011. profit CDFI and SBA microlender owners also report they face fewer To sign up for Crain’s ber of entrepreneurs benefiting Most recently, in November, her in Brooklyn. Last year, it launched a bureaucratic hassles getting paid. SMALL BUSINESS newsletter, go to from the administration’s push.The profitable firm—which she says has $3.5 million loan fund for In the past seven months or so, www.crainsnewyork.com/smallbiz. Department of Small Business annual revenue in the $1 million to community-based construction Nayan Parikh, founder and presi-

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January 5, 2015 | Crain’s New York Business | 5 THE INSIDER by Chris Bragg and Andrew J. Hawkins

New year’s political noisemakers from the wage board he created income and campaign finances. about boosting the pay of tipped Still reeling from the Moreland he past 12 months have been replete with political food-service workers. A decision is Commission debacle,Mr.Cuomo expected in February. is seeking reforms strong turmoil in New York, including the abrupt shift to  The surplus. In a enough to satisfy cynical Mayor Bill de Blasio’s progressivism, a rocky re- radio interview, Mr. voters. U.S. Attorney Preet T Andrew Cuomo Cuomo described Bharara has reportedly found election year for Gov. and a new magnitude of campaign spending by outside groups. the state’s $5 billion one of the mysterious surplus as a “one- sources of Assembly Speaker The new year’s politics could be at least as tumultuous. shot” that must not Sheldon Silver’s disclosed Debates and dealmaking will involve business policies, such as be used for recurring $650,000 in income, and the minimum wage and real-estate tax breaks, and fiscal ones, expenses. Lobbyists figures to claim more scalps of such as how to spend the state’s budget surplus. Ethics will be and interest groups are legislators who abuse the circling: Education per-diem system. a hot topic as well, with a federal prosecutor on the prowl and groups want $1.9 billion for  Charter schools. controversies bubbling. Here are some of the top issues: low-income schools, housing After bankrolling the advocates want $1 billion for Republicans’ takeover  Minimum wage. Liberals’ push to Legislature to lift the statewide affordable apartments, and of the Senate majority, raise the minimum wage gained hourly minimum to $10.10 from social-services groups want charter-school sup- momentum well before the second $8.75 and to allow the city to tack on $354 million for nonprofits. porters are pushing hard step of an ongoing three-phase another 30% increase. Mr. Cuomo Lawmakers seem inclined to to eliminate the cap on increase took effect Dec. 31. With has expressed support, and though spend the bulk of the surplus charters. Mr. Cuomo is polls showing strong bipartisan Republican Senate leader Dean Skelos on infrastructure projects. But strongly supportive, but public support for a hike, the has said he’s not interested, a deal in which ones? teachers’ unions are opposed and question has become not if, but how 2015 is seen as probable.Mr.Cuomo  Criminal-justice reform. Mr. have backing from Assembly much. Mr. de Blasio wants the will also receive a recommendation Cuomo plans to convene experts to Democrats. Bet on a modest address issues raised by a grand bulletproof police-car windows increase to the cap. jury’s failure to indict a police officer eyed by Senate Republicans.  Statehouse politics. With Senate QUOTE OF THE WEEK: ‘He doesn’t like in the asphyxiation of Eric Garner.  Albany ethics. Lawmakers didn’t Republicans having won a slim But the subsequent murder of two take the pay-raise bait dangled by majority, expect Independent horses, and I guess he doesn’t like pandas’ NYPD officers complicated the Mr. Cuomo before the end of the Democratic Conference leader Jeff —Rep. Carolyn Maloney, on Mayor Bill de Blasio’s lack of interest in receiving, and Klein paying for the care of, two Chinese pandas for a zoo in New York politics.A deal could include grand- year in exchange for legislation that to tread lightly on the Dream ap images; buck ennis; bloomberg news jury changes sought by liberals and would expose or restrict their private See NEW YEAR on Page 20 Spectacular Sublease Available 2500 Halsey Street | Bronx, New York 10461

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Possibility of combining with landlord’s 45,000 SF CONTACT: Victor A. Hayghe for a total of 119,060 SF 718-794-5317 | [email protected]

6 | Crain’s New York Business | January 5, 2015 BUSINESS 37% Portion of NYC horse- carriage drivers who live in Queens, more than in any other borough PEOPLE Source: NYC OpenData

EDUARD SLININ launched his first EXECUTIVE MOVES business in 1985 with a single car. His Fayohne Advisors: firms operate more Levar Haffoney,35, than 3,000 today. was promoted to chief executive at the financial-planning and investment- management firm. He was previously a principal. Remco: Michael Bradley, 45, was promoted to chief marketing officer at the architectural restoration, preservation and maintenance company, a newly created position. He was previously chief operating officer. Jun Group: Daniel Frisbie, 40, joined the advertising company as executive vice president of sales. He was previously vice president of sales at iHeartMedia. Mishel Alon, 34, joined as director of product. He was previously product manager at Vidyo. Comedy Central: Lu Chekowsky, 41, joined the network as senior vice president of brand creative. She was previously vice president and creative director at MTV. Lenox Advisors: Anthony Iuffredo, 41, joined the wealth-management services firm as senior vice president. He was previously a sales manager at Strategies for Wealth. SOLS: Leslie Borrell, 39, joined the 3-D printing startup as senior vice president of engineering and technical operations. She was previously vice president of engineering at Amplify. Sprott Inc.: Whitney George, 56, joined the asset manager as senior portfolio buck ennis manager. He was previously a managing director at Royce & GOTHAM GIGS Associates. Museum of Arts and Design: Elissa Auther, 48, joined the center as its Windgate research curator, a newly created position. She was previously associate professor of contemporary art and the director of the art history Fighting back against Uber and museum studies program at the University of Colorado. HNTB Corp.: Jaidev Livery veteran tries to put brakes on poaching Sankar, 43, joined the infrastructure- services firm as Eduard Slinin was 15 when he dropped out of like cowboys.” ¶ In response, Mr. Slinin’s project director and ‘They try vice president. school and began driving a taxi to help feed his company, which operates more than 3,000 He previously to steal family in Canarsie.The Ukrainian immigrant vehicles in the tristate area, debuted its own app in held the post of hasn’t stopped working since. ¶ “Eighteen hours a the New York market that allows customers to associate vice my drivers. president at AECOM. day, seven days a week,” Mr. Slinin said recently hail and track a black car or limo with the same Blippar: Ryan Schmaltz, 34, joined the from the back seat of a new Mercedes owned by ease as they can with Uber, he said. He noted that image-recognition platform as vice They act president of global product and one of his companies, AllState Private Car & some of his drivers (who are independent strategy. He was previously manager like Limousine. “I went right into the business, and contractors) have returned, as they realize they of finance, operations and strategy at Uber. cowboys’ now we’re one of the biggest and the best in the can make more money with AllState. He claimed New York Public Radio: Kevin Stuart, country.” ¶ But Mr. Slinin, 50, faces a dire threat: his drivers make an average of $95,000 a year. ¶ “I 40, joined the public-radio franchise Uber. Even before controversy arose about the understand the business, because I was a driver as vice president of digital product and technology. He was previously car-service startup’s aggressive business practices, once,” Mr. Slinin said. “I’ve been doing this for 30 director of product at Discovery Mr. Slinin issued a clarion call to his colleagues years.” ¶ He launched his first business in 1985 Communications. Stalco Construction about the threat of Uber to hurt them with a single car and grew by landing New York’s Inc.: AnaTracey economically. As he rode around Manhattan, he biggest financial institutions as clients. He also is Hawkins, 37, joined the general- phoned Josh Mohrer, Uber’s New York general a major player in Las Vegas and a number of other contracting and manager, to give him a piece of his mind. But the cities where Uber, valued at $40 billion, is on the construction- call went to voicemail. “They try to steal my march. “Drivers want to make a living,” he said. management firm as vice president drivers,” a frustrated Mr. Slinin said. “They act “Nothing more, nothing less.” —chris bragg See EXECUTIVE MOVES on Page 8

January 5, 2015 | Crain’s New York Business | 7 BUSINESS PEOPLE

CORPORATE LADDER EXECUTIVE MOVES

Continued from Page 7 PROFITS PLUS POSITIVE ENVIRONMENTAL CHANGE of marketing. She was previously a public-relations consultant at Rolls- KATHERINE BUTKEVICH, Recyclebank’s new chief financial officer, spent the first half of a career that spans three decades Royce North America. working for large companies, including KPMG and GE Capital. “They taught me how to walk and talk and chew gum,” said Hub International Northeast: Nick Bueti, Ms. Butkevich, 53. But her real passion is building businesses. 42, joined the insurance brokerage as Recyclebank, which has 53 employees, partners with brands and municipalities that pay the company to conduct assistant vice president in the employee- benefits division. He was previously a programs that promote recycling and waste reduction. More than 300 communities have signed up. As a benefits senior account consultant at B corporation, Recyclebank is a for-profit firm that is committed to creating positive social and environmental change. Corporate Synergies Group. The company’s 4 million members participate in a rewards program, and on Earth Day last year, it launched One Twine, Forbes Media: Olivia an e-commerce platform where consumers can purchase environmentally friendly goods. Gelade, 41, joined the Ms. Butkevich, who was previously CFO at the National Association of Professional Women, will manage Recyclebank’s media, branding and operations and finances, and grow partnerships. technology company as luxury manager in CEO Javier Flaim said her background in financial management and operations made her the right fit. “We wanted a sales. She was seasoned executive who could be a mentor and build a team,” he said. “She knocked it out of the park.” —NAZISH DHOLAKIA previously the executive director of sales and marketing for CNTraveler.com at Condé Nast. Jessica Bohrer, 37, joined as associate general counsel for the Forbes editorial department. She was previously senior counsel at WNET New York Public Media. Antoine Gara, 29, joined as a staff writer. He was previously an M&A financial- services reporter at TheStreet.com. Akerman: Yariv Ben-Ari, 40, joined the law firm as a partner in the real estate practice. He was previously senior counsel at Morrison Cohen. Andrew Berman, 52, joined as a partner in the real estate practice. He was previously founding director of the Providing research, blood products, laboratory Center for Real Estate Studies at New York Law School and continues as an adjunct professor of law. Lisa Lim, 50, joined as a partner in the real estate practice. She was previously services, medical expertise, cord blood and cell senior counsel at Empire State Development Corp. Lansing Palmer, 70, joined as a partner in the litigation practice group. He was previously a partner at Putney Twombly therapy products to support hospital patients Hall & Hirson. Bracewell & Giuliani: Abraham Reshtick, 42, joined the law firm as a partner. He was previously an associate at Ropes & Gray. Frankfurt Kurnit Klein in NY, NJ, CT, PA and beyond. & Selz: Catherine Farrelly, 43, joined the law firm as a partner and co-chair of the trademark and branding group. She was previously a director at Gibbons. Fried Frank Harris Shriver & Jacobson: Stephen Juris, 42, joined the law firm as a partner. He was previously a partner at Morvillo Abramowitz Grand Iason & Anello. Gibson Dunn & Crutcher: Mylan Denerstein, 47, joined the law firm as a partner. She was previously chief counsel and principal legal adviser to Gov. Andrew Cuomo. Kleinberg Kaplan: Jared Gianatasio, 32, joined the law firm as senior counsel. He was previously a senior associate at Shearman & Sterling. Kramer Levin Naftalis & Frankel: Norman Simon, 43, was promoted to co-chair of the advertising litigation group at the law firm. He continues as a partner. Lowenstein Sandler: James Gregory, 51, joined the law firm as a partner. He was previously a partner at Proskauer Rose. McDermott Will & Emery: Joel Hugenberger, 35, was promoted to partner at the law firm. He was previously an associate. Toni Ann Kruse, 33, was promoted to NYBLOODCENTER.ORG partner. She was previously an associate. Shu-Ping Shen, 35, was promoted to EXCELLENCE ɷ QUALITY ɷSERVICE ɷ INNOVATION ɷ LEADERSHIP partner. He was previously an associate. —nazish dholakia EXECUTIVE PROMOTIONS The fastest way to get an announcement into Crain’s is to submit online. Fill out the form at www.crainsnewyork.com/section/ executive_moves. The Executive Moves column is also available online.

8 | Crain’s New York Business | January 5, 2015 REAL ESTATE

company are currently run “These two sales are an order of out of Long Island City, magnitude higher than the highest Queens. price per buildable square foot ever BuzzFeed inks big “A lot of people talk in Brooklyn,” said Brendan Maddi- about the production and gan of Massey Knakal Real Estate, distribution, but this is re- who represented the seller in the lease at high price ally going to be a campus transaction, noting that they also that will bring together topped all other development site technologists, food re- sales in Manhattan for the year. uzzFeed, the digital-media powerhouse known for its listicles, searchers and everyone The properties sold for about has signed one of the biggest leases of the year for midtown else,” said FreshDirect $3,200 and $2,500 per buildable south, helped by up to $4 million in state tax subsidies—a sum CEO Jason Ackerman. square foot, respectively, though the de Blasio administration criticized as unnecessary because “What makes it so excit- since they will be used for lucrative the company had no intention of leaving the city. ing for us is that we’re fi- retail,would naturally be higher than BIt will take 200,000 square feet at 225 Park Ave. South, nally pulling everyone fresh direct a mixed-use development site. a 19-story, 500,000-square-foot into one space.” “Being on Bedford Avenue, the property, and add 475 employees His company’s relocation plan pany on the fast track to [its] future most trafficked block in Brooklyn’s over five years. The lease is a long- has generated controversy from the Bronx relocation.” hottest neighborhood,these two de- term deal, according to people with beginning. After FreshDirect FreshDirect insists it will deliver velopments are the epitome of tro- knowledge of the transaction. The threatened to move to New Jersey, on its promise to foster growth in its phy assets,”said Peter Levitan of Lee asking rent is $85 per square foot. then-Mayor Michael Bloomberg new neighborhood. “This project is & Associates,who represented Red- BuzzFeed, named by Crain’s as cut a deal with the company in going to generate a huge amount of Sky in the transaction and is now one of the area’s fastest-growing 2012 to move it to the Bronx, business development in the area,” leasing the spaces. —joe anuta companies and a Best Places to where it would keep its 3,000 jobs Mr. Ackerman said. “We want to Work,will move into space that will while creating 1,000 new ones. In absolutely encourage as many serv- be vacated next year by the Port Au- exchange,the city and state will of- ices as possible to follow us into the BARE BONES thority of New York and New Jersey,a longtime tenant.The building is two fer subsidies that could surpass South Bronx.” 32 OLD SLIP office properties that were combined into one decades ago.It offers two roof $130 million. —thornton mcenery ASKING RENT; spaces. BuzzFeed will have exclusive access to one of them. Mayor Bill de Blasio, who vocal- TERM: Low The Port Authority occupied the bulk of the building for years, but is re- ly disapproved of the subsidies giv- $40s per square locating its headquarters to 4 World Trade Center.The deal with BuzzFeed en to FreshDirect during his 2013 B’klyn sites close foot; 15 years will fill a portion but not all that space. The top of the building and floors campaign, has been mum on the for record sum SQUARE FEET: eight to 10 and 17 to 19 remain vacant. move since taking office. 55,000 Brian Waterman and Andrew Peretz,brokers at Newmark Grubb Knight Bronx Borough President Ru- RedSky Capital has closed on two TENANT; REPS: Frank, represented the building’s landlord, Orda Management, in the deal. ben Diaz Jr. has long supported prime Williamsburg development The Steve Marvin, a broker with Olmstead Properties, represented BuzzFeed. bringing FreshDirect to the bor- sites located near the Bedford Av- CementBloc; Mitchell Arkin Fried Frank, led by real estate partner Meyer Last, provided counsel to the ough, where unemployment is the enue L train stop, paying nearly $40 and Haley Fisher of Cushman & landlord. —daniel geiger highest in the city. million. The price per square foot is Wakefield “This project represents new jobs a city record for this year. LANDLORD; REPS: Beacon Capital ready to deliver itself to the South and new development, and is a key The firm, which owns a number Partners; Robert J. Alexander and FreshDirect finally Bronx. Late last month, the online component of our ‘New Bronx’ of retail and development sites in David E. Hollander of CBRE Group Inc. 184-186 Bed- delivers in Bronx grocer broke ground on its 500,000- agenda,” Mr. Diaz said in a state- Brooklyn, snapped up BACK STORY: The advertising square-foot corporate headquarters ment. “FreshDirect has cleared ford Ave. and 204-206 Bedford Ave. and company will consolidate its Flatiron After years of delays, lawsuits and in the Mott Haven section of the bor- every hurdle placed in its way, and plans to build two-story retail build- and Chelsea offices in its move to the other snags, FreshDirect is officially ough.Operations for the 12-year-old [the] groundbreaking puts the com- ings on each lot. 36-story downtown office building.

January 5, 2015 | Crain’s New York Business | 9 OPINION CRAIN’S NEW YORK BUSINESS

Expand the Frick museum Rance Crain editor in chief publisher, vp Jill R. Kaplan mong the many things that make New was closed to the public. You can tell where this is going: EDITORIAL editor Glenn Coleman York City great are its museums. More Some neighbors now object to the expansion plan the Frick managing editor Jeremy Smerd than 100 of them, each with its own envisioned all those years ago. deputy managing editors Valerie Block, Erik Ipsen character, enhance the quality of life for The museum’s thoughtfully updated and designed assistant managing editors Barbara Benson, residents and keep tourism dollars flowing proposal, which requires both a zoning exception and Erik Engquist senior news producer Amanda Fung into locals’ pockets. landmarks commission approval, is to replace the private contributing editor Elaine Pofeldt Among the many things that make the garden with a public one on the roof of a new addition.The columnists Greg David, Steve Hindy, Alair Townsend senior reporters Theresa Agovino, city infuriating are its kvetchers.These are the folks who neighbors’ kvetching, boiled down, is that they will lose their Aaron Elstein, Lisa Fickenscher, Matthew Flamm, react to change by asking, “What’s in it for me?”They view of a closed garden. We side with the other 8.3 million Daniel Geiger, Adrianne Pasquarelli A reporters Joe Anuta, Chris Bragg, bemoan any idea that might inconvenience them. New Yorkers and 55 million tourists who would get a garden Andrew J. Hawkins, Irina Ivanova, Jonathan LaMantia, Thornton McEnery Which brings us to the Frick Collection, the magnificent they can visit—and a vastly superior “house museum” reporter/videographer Ken M. Christensen little art museum housed in the former residence of Gilded experience, too. news producer Emily Laermer Age industrialist Henry Clay Frick. web reporter/producer Nazish Dholakia The public The Frick could art director Steven Krupinski A longtime fixture of the city’s Museum Mile, the Frick has build on its property deputy art director Carolyn McClain staff photographer Buck Ennis seen its attendance rise nearly 40% since the mid-1990s but benefits offset without a zoning copy desk chief Steve Noveck lacks the space to show much of its collection of Old Master action, but the current copy editor Thaddeus Rutkowski the lost views of data editor Suzanne Panara paintings, European sculpture and decorative arts. Its concert rules demand a tall, researchers Jessica Kramer, Nicholas Wells series and student programs cannot meet the demand. Patrons a privileged few thin building that’s ADVERTISING advertising director Joanna Harp wait in lines just to hang their coats and use the bathrooms. hardly ideal for a sales manager Irene Bar-Am Modern wheelchairs cannot fit through the doors. museum. Of course, if senior account managers Jill Bottomley Kunkes, Courtney McCombs, Decades ago, museum officials bought and demolished the Frick had proposed Rob Pierce three adjacent buildings to expand their Fifth Avenue such a tower, neighbors account managers Zita Doktor, Stuart Smilowitz sales coordinator LeAnn Richardson institution and connect it to the Frick Art Reference Library. would have griped about that as well.They want the garden, credit manager Jason Hogan (313-446-0353) They couldn’t afford to do the project then, so they created a and everything else, to stay the way it is. CUSTOM CONTENT, EVENTS AND PRODUCTION splendid private garden on the expansion site in the interim. “It’s a beautiful garden,” a museum official admits. “We director of custom content Trish Henry director of audience & content Neighbors of the museum, suddenly blessed with a view built it.” partnership development Michael O’Connor director of conferences & events of a garden rather than the sides of buildings, came to And now it’s Exhibit A in a classic lesson of New York Courtney Williams treasure the green space, although (or perhaps because) it City land use: No good deed goes unpunished. events coordinator Adrienne Yee events coordinator & scheduler Alexis Sinclair reprint account executive Alicia Samuel CRAIN’S ONLINE POLL COMMENTS media services manager Nicole Spell ONLINE AND INTERACTIVE SERVICES general manager Rosemary Maggiore WAS GOV. TO SUBSCRIBE: ANDREW For print and digital subscriptions or customer A state of well-being service, e-mail [email protected] CUOMO or call 877-824-9379 (in the U.S. and Canada) or RIGHT TO POVERTY AND HEALTH BUILDING MOMENTUM called the BluePrint, a process 313-446-0450 (all other locations). $3.00 a copy for to streamline its review of the print edition; or $99.95 one year, $179.95 two BAN years, for print subscriptions with digital access. The editorial “To fight poverty, Re “City speeding up building land-use applications. Al- www.crainsnewyork.com/subscribe FRACKING unite NYC” (Dec. 8) and the approval process” (Crains though the initial results have TO ADVERTISE: report it references are critical- NewYork.com): We in the been disappointing, several ad- IN NEW Contact Joanna Harp at [email protected] ly important, even more so be- building industry welcome the ditional steps could help: or call 212-210-0278. YORK? cause of the clear link between administration’s efforts. But ● If an environmental appli- www.crainsnewyork.com/advertise istockphoto economic status and health the real delay in getting proj- cation is substantially complete FOR INFORMATION ON OUR EVENTS: Yes. Studies showed that the controversial outcomes. Statewide system ects to certification is the cum- but not quite finished, allow the Contact Courtney Williams at process of extracting natural gas would be reform efforts to improve the bersome City Environmental project to be certified. ULURP [email protected] or 212-210-0257. hazardous to citizens’ health and drinking health of New Yorkers might Quality Review, or CEQR. offers seven months to clean up www.crainsnewyork.com/events water, and not worth the jobs it would create. fall short of their goals unless Unlike the city’s Uniform open items so a final determi- TO CONTACT THE NEWSROOM: we address core issues relevant Land Use Review Procedure, nation can be issued. 685 Third Ave., New York, NY 10017-4024 No. Fracking of natural gas brings energy to health, such as poverty. or ULURP,which has a fixed, ● Increase the use of “e” editorial phone: 212-210-0277 independence, lower greenhouse-gas This was reinforced recently public-review timeframe, designations, which allow proj- fax 212-210-0799 emissions than coal or oil, jobs and wealth to Entire contents ©copyright 2015 Crain Communications Inc. when we at the New York CEQR has no such structure ects to bypass lengthy studies All rights reserved. ®CityBusiness is a registered trademark landowners. Done right, it poses no danger. Academy of Medicine convened and can seem endless. Projects but ensure all environmental of MCP Inc., used under license agreement. focus groups across the city to cannot be certified until the analyses and safeguards are Date of poll: Dec. 17 CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS 254 votes help assess community health Department of City Planning’s performed before construction. ● chairman Keith E. Crain needs. In many communities, Environmental Assessment Expand the list of projects president Rance Crain participants identified poverty and Review Division deter- not requiring an environmental treasurer Mary Kay Crain 63% as a barrier to focusing on health mines possible impacts upon assessment statement. The Cindi Crain Yes care needs—food, shelter and the environment. Add to that current list is limited to the executive vp, operations William Morrow safety took precedence. So we mayoral priorities, constantly construction or expansion of a executive vp, director of strategic applaud the call to unite across changing technical guidelines single-family, two-family or operations Chris Crain executive vp, director of corporate sectors and stakeholders to ad- and staff changeover, and it’s three-family residence. The operations K.C. Crain dress poverty and the other de- no wonder that developers and number of residences/units senior vp, group publisher David Klein 37% terminants of health. associated professionals are should be increased. vp/production, manufacturing David Kamis No —anthony shih, m.d. frustrated. —hiram a. rothkrug chief financial officer Thomas Stevens Anthony DiPonio Executive vice president In 2012, City Planning in- President chief information officer New York Academy of Medicine troduced what the agency Environmental Studies Corp. founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) secretary Merrilee Crain (1942-2012) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

10 | Crain’s New York Business | January 5, 2015 2015 ECONOMIC OUTLOOK INSIDE Dollar daze for tourism? Strong U.S. currency almost always adds up to fewer overseas visitors for NYC PAGE 13 Where the job, wage gains are Manhattan vs. the other boroughs PAGE 13 REPORT LISTEN to a discussion at CrainsNewYork.com/podcasts

BLOW UP: Freelance photographer William Hereford has greatly fed The economy’s up, off the Web’s hunger for content. but NYers are down

mid an economy that has outperformed the nation in job creation and is now seeing improvement in wages,New Yorkers have turned sour about the di- rection of the city. The conventional wisdom at- tributes greater racial tensions to the sudden in- Acrease in residents who say the city is on the wrong track.But the mayor’s view of a more polarized city is at work, too. Consider the contrast between the theme of this 2015 Eco- nomic Outlook section and the most recent polls. New York ended last year with about 90,000 more jobs, the fourth-highest gain on record. Most local economic experts predict this year will see a repeat of this very robust story. If you add job numbers for the last three economic expan- sions (see chart), this current six- year expansion will be far better than the mid-2000s boom fueled by Wall Street or the long eight-year growth period in the 1990s. GREG DAVID Even wages are rising.In 2013,as Bill de Blasio was campaigning for mayor, median family income in the record and now almost the same as city rose by 3.5%, four times the im- the rate of the rest of the country. provement nationally. (These are Although some contend gentri- the latest available data,adjusted for fication is partly at work here, both inflation, and—as the median fig- wages and the portion of people ures—are not boosted by big gains working represent significant im- among the wealthy.) provement for New Yorkers. Even better, many more city res- Yet ever since early 2013, when idents are working. What statisti- Bill de Blasio began to attract atten-

karjean levinekarjean cians call the labor-force participa- tion with his “tale of two cities” tion rate has been rising in the city theme,New Yorkers have become in- throughout the recovery from the creasingly pessimistic about the city, Great Recession even as the U.S.rate as the New York Times/Siena College has fallen.At 60%,it is a modern-day poll results show. (The Quinnipiac poll traces a similar pattern.) Growth experience DESPITE VERY STRONG JOB New Yorkers are responding to GROWTH … the drumbeat from the mayor about Low-wage industries have defined the boom, ly live there, and this is totally that,” NYC expansions the ways in which the glass is half- she said. “It feels amazing.” PERIOD YEARS JOBS full, or maybe a quarter-full. He and but look for a spike in big-spender tech jobs Ms. Reder, 25, is just one of the 1993-2000 8 438,600 other progressives belittle employ- beneficiaries of the city’s strong ment growth by saying the jobs pay She applied for 12 jobs until she economy, which produced a near- 2004-2008 5 262,700 far too little.His insists the city is in- BY LAURA BULT found the right one: a position as a record 90,000 jobs last year and is 2010-2015 6 459,500 creasingly unaffordable. He claims curatorial assistant at the Museum likely to repeat that feat in 2015, Source: NYS Department of Labor using annual inequality is worse than at any time When Hillary Reder received a of Modern Art. With a starting with more good-paying positions average since the Great Depression. master’s in art history from salary of $52,000, she felt confident like the one Ms. Reder landed. For those who see the glass half- Williams College last spring, she about a move to an expensive city. “The city overall is more attrac- … NEW YORKERS TURN SOUR full, the city has also created high- began a job search for the perfect “I always said I only want to go to tive, and it’s attracting more young ON CITY’S PROSPECTS paying sectors like business services, position. New York when I can afford to real- people and more rich people,” said Portion saying NYC is on tech, and film and movie produc- James Parrott, an economist at the tion. Inequality is rising again, but BIGGEST 2014 GAINERS wrong track Fiscal Policy Institute. the major indicators—the Gini in- Number of jobs The industries that have driven October 2005 28% dex and the percentage of income % gain Health services the city’s economy since the recovery June 2008 56% controlled by the top 1%—remain 20,900 +4.6% began in 2009—health services, below their 2007 peaks. And recent August 2011 54% Restaurants, bars education, retail and restaurants— wage growth is very promising. 11,800 +4.6% accounted for almost half the in- July 2013 41% The mayor will stick with his crease in jobs in 2014. All are expect- rhetoric because that is what is Retail August 2013 46% 9,700 +2.8% ed to show strength again next year. needed to enact his agenda of paid September 2013 45% Arts, entertainment Unfortunately, these jobs are gener- sick leave, a higher minimum wage ally low-wage positions. and support for private-sector 7,000 +9.6% October 2013 48% “The overall impact of those job unions. If the stories in this section Management consulting gains are not going to be as great as December 2013 42% are right, it will be increasingly at 5,300 +13.2% if they were in higher-income indus- March 2014 42% odds with reality. Accounting tries,”said Adam Kamins,a Moody’s 4,900 +10.4% Analytics economist who specializes December 2014 52% LISTEN to a discussion at Note: Seasonally adjusted through November Source: Independent economist Barbara Byrne Denham See WALL ST. on Page 13 Source: New York Times/Siena College poll CrainsNewYork.com/podcasts

January 5, 2015 | Crain’s New York Business | 11 REPORT 2015 ECONOMIC OUTLOOK GOING UP: “There are jobs everywhere in construction,” Construction firms build on big year one worker said.

housing program gets off the adding 2,000 jobs in 2014, the est Bloomberg housing plan is help- As luxury condos ground. Building Congress predicts contin- ing now. proliferate, industry Residential construction last year ued gains this year and next. By the increased by 60%, according to a re- end of 2016, the city will have about Busier than ever reaps gains in cent report from the New York City 127,300 construction jobs, about Dunn Development Corp. cur- Building Congress,to $11 billion,or 10,000 shy of the prerecession peak, rently has 820 units under construc- employment about a third of the total, according when the construction industry em- tion.This time last year, the compa- to the report. That figure was more ployed 138,000 New Yorkers. With ny had just 561 units in the works. BY GWYNNE HOGAN than the construction spending for an average wage of $54,000 a year, “We’re by far the busiest we’ve ever

offices, hotels and other facilities. construction provides much- been,” said President Martin Dunn. buck ennis Spurred by the building of luxury The impact of new luxury high- needed middle-class jobs, especially Many working in construction condominiums, construction spend- rises is clear because the 60% in- for people with less education. feel an optimism they haven’t expe- midtown site where a Hampton Inn ing in the city topped an estimated crease in work has translated to only Although the big impact from rienced in years. hotel is being built. $32 billion in 2014 and is likely to a 22% rise in the number of units. Mr. de Blasio’s plan to build 80,000 Armando Juarez has worked in “There are jobs everywhere in continue to grow in the years ahead Increased spending translates, of new affordable units will be seen in construction for six years and is cur- construction,” he said in Spanish. as Mayor Bill de Blasio’s affordable- course, into employment. After future years, the slightly more mod- rently employed as a foreman at a “It’s in one of its best moments.”

For ad-tech SCOTT KNOLL of Integral Ad Science said a presence in New York is essential for ad-tech firms, biz, NY is the thanks to Madison Avenue and the city’s place to be talent pool.

It’s not just startups, just to an endless stream of startups, but also to credible companies with either: Later-stage large and growing businesses. They are members of a commu- investments are nity that by the third quarter of 2014 boosting mature firms had banked $3.4 billion in investor capital, $426 million more than in all of 2013, according to CBIn- BY JUDITH MESSINA sights, helping to make New York the second-largest tech hub in the Scott Knoll, CEO of Integral Ad country. A report by Endeavor In- Science, started in ad tech at Dou- sight found that more than 53,000 bleClick, the Manhattan startup people work in tech startups in the born in the mid-1990s and eventu- city, a number that grew by more ally bought by Google.Even then,at than 26% a year between 2010 and the dawn of Silicon Alley, it made 2013.

sense for a budding ad-tech firm to “The willingness of a sophisti- buck ennis be in New York.Today,it’s essential. cated private sector to consistently “If you are building an ad-tech put money into these companies at Partners, which has bankrolled room for disruption. New York, in fluenced 75 other New York tech company, this city is a must-have significant levels is very important,” more than 100 startups, nearly 30% fact, is the fastest-growing market firms by founding, mentoring, in- presence,” said Mr. Knoll, whose said Maria Gotsch, president and of them in New York. “It’s a great for fintech investment in the coun- spiring and/or investing in them. firm, which helps businesses place CEO of the Partnership Fund for place to build companies that are try, according to Accenture, with Those 75, in turn, have gone on to ads online, grew more than 3,000% New York City. NYC TECH, going to disrupt some of those in- dollars and deal volume rising at an- influence 177 other startups. between 2011 and 2013. “You have Those in- dustries.” nual compound growth rates of 45% “It’s not just a bunch of entrepre- to be in New York. You don’t neces- vestors are financ- 2003-2013 One of them is media, which in and 31%, respectively, over the past neurs on the fringe,” said Frank Ri- sarily have to be in Silicon Valley.” ing New York’s New York has spawned a new class five years, twice the rate of fintech malovski, executive director of the third tech wave. 2,206 of digital news businesses,including companies in Silicon Valley. NYU Entrepreneurial Institute and Predominant force The first petered COMPANIES BuzzFeed, Gawker, Business Insid- managing director of the NYU In- Silicon Valley has more startups out with the dot- started er, Heavy and Vice Media, which Self-perpetuating network novation Venture Fund.“We’re see- and more money,but New York City com bust of 2000- alone raised $250 million in venture Key fintech players in the city in- ing serial entrepreneurs, ‘repeat of- is the predominant force in ad tech 2001, and the sec- 336 capital in 2014 at a reported valua- clude Betterment, LearnVest and fenders’ recycling talent and money, and two other key sectors that are ond had barely ACQUISITIONS tion of $2.5 billion. OnDeck Capital,which went public an ecosystem of talent who really being transformed by technology, started when the and IPOs, worth Ad-tech firms are reaping some a few weeks ago, valued at $1.3 bil- know what they are doing.” digital media and e-commerce, and recession hit in $18.1 billion of the biggest investments. Last year lion. And in the still-young health- The downside of New York’s a strong contender in emerging in- 2008. Unlike the AppNexus landed $110 million; tech sector,New York is home to one strong suits is that companies in oth- dustries such as financial tech and earlier waves, $14.2B MediaMath, $73 million; and xAd, of the few members of the billion- er sectors can end up playing on the health tech. It’s why California- where the game INVESTMENT $50 million. They, along with com- dollar startup club, ZocDoc, which sidelines. A relative handful have based Google has more than 3,000 was about the CAPITAL panies such as Collective, Sprinklr, last June raised $150 million at a achieved the kind of success that employees ensconced in a former coolest technolo- Outbrain and Undertone, are all valuation of $1.6 billion. brings attention, such as database Port Authority building on Eighth gy, the current thought to be potential IPO candi- Importantly,New York has start- company Mongo DB, social net- Avenue. surge is about the 13.3% dates. ed to develop the kind of self- working site Tumblr (sold to Yahoo ANNUAL growth in Of New York’s 50 largest ven- application of VC investments They are attracting the dollars perpetuating network that has made for $1.1 billion) and 3-D printer ture-capital deals through Septem- technology to dai- because of the city’s Madison Av- the West Coast a fount of startups, manufacturer MakerBot (scooped ber, 26%, or $594 million, went to ly life and busi- enue savvy and its talent pool, a crit- where successful entrepreneurs seed up by Stratasys for $400 million). content and digital media; 18%, or ness, a develop- 53,000+ ical commodity in an Internet world new companies and nurture new en- Whatever the sector, there’s $404 million,to ad tech;and 15%,or ment that plays to JOBS where advertising is the business trepreneurs. Gilt founder Kevin every reason to believe that New about $340 million, each to e-com- New York’s over- Source: Endeavor.org model or part of the strategy for Ryan last year told a conference York’s emergence as a major tech merce, fintech and health tech, whelming expert- countless ventures. that 34 former DoubleClick em- center is still in its early days. based on data from research firm CB ise in industries that are being revo- E-commerce also boasts high- ployees are themselves now CEOs. “It’s all happening in an ecosys- Insights. lutionized by technology. fliers including Gilt, Bonobos, Etsy, And Endeavor calculated that three tem only 18 years old,” said Eric Nearly two-thirds were later- “New York is the hub of several Birchbox and Rent the Runway. companies—ad-tech and market- Gertler, executive vice president and stage investments—more evidence key industries,” said John Elton, a On the rise are fintech and health ing stalwarts DoubleClick, App- managing director for the city’s Cen- that New York is giving birth not partner at venture firm Greycroft tech, both industries with plenty of Nexus and Buddy Media—have in- ter for Economic Transformation.

12 | Crain’s New York Business | January 5, 2015 Man-whattan? Boroughs continue to lead growth

New York County BOROUGHS TRUMP MANHATTAN 1999-2007 2007-2013 lags rest of city in JOB GROWTH WAGE GROWTH +11.1% +11.1% jobs and wages as +26% +25% economy diversifies +2.8% +2.8% +17% BY REBECCA BRATEK

It’s been the decade of the boroughs +4% outside Manhattan, and the diver- -4.2% sifying city economy is likely to buck ennis continue to boost communities Manhattan Other boroughs Manhattan Other boroughs from Staten Island to the north Source: New York Federal Reserve Bronx. Strong dollar could The boroughs have steadily out- said Ed Rogoff,chair of the depart- The Brooklyn Navy Yard and paced Manhattan in private-sector ment of management at Baruch Industry City in Brooklyn, and employment, growing 11% be- College’s Zicklin School of Busi- Long Island City and Hunters tween 2007 and 2013, compared ness. Point in Queens, are key spots for stifle tourism boom with 3% in Manhattan, according Income in the boroughs since new tech companies to move in, to a recent report by the Federal Re- 2007 has risen nearly four times as business leaders believe, thanks to serve Board of New York that quan- fast as it has in Manhattan, accord- lower rents and the promise of a de- Travel industry fears When the New York Fed explored tified the economic revival. The ing to the Fed. veloping community for the sector. the city’s exposure to currency fluctu- same pattern occurred from 1999 to The boroughs have done ex- erosion of overseas ations in 1995, it found that a 6.7% 2007 (see chart). traordinarily well in part by devel- ‘Huge opportunity’ visitors’buying power appreciation of visitors’ currencies As increasing numbers of people oping different strengths. Take the “Tech is a huge opportunity be- would lead to a 1% increase in hotel move into more affordable commu- Bronx,for instance:The health care cause we have old, traditional man- occupancy rates, a common indicator nities across the rivers, demand for industry accounts for roughly ufacturing space that can be repur- BY MARK FAHEY for the tourism industry as a whole. retail and service jobs increases. 87,000 jobs, or more than 35% of posed,” said Jack Friedman, A hypothetical 1% dent in the city’s boroughwide employment, as well executive director of the Queens The dollar is up, and so is the cost of tourism industry would translate to a Rising income as a slightly higher share of all wage Chamber of Commerce.“The rents being a tourist in New York City.At $600 million economic loss, or annu- “People bring their income and salary income. are cheaper, and [office spaces are] risk is the city’s tourism boom. al wages for about 14,000 average home from Manhattan,” said Queens is anchored by the city’s geographically located closer to A business executive from Rio de leisure and hospitality workers. Nicole Gelinas, senior fellow at the two major airports. Employment is Roosevelt Island than anywhere else Janeiro will find herself paying $329 NYC & Company,the city’s offi- Manhattan Institute. If the city’s expected to grow with major over- in the city.” in Brazilian reales for the hotel room cial tourism promotion agency, in- economy keeps doing well,she said, hauls planned for LaGuardia and The boroughs’ future seems as- she booked for $300 last winter. sists New York will be unaffected by higher income in the boroughs is expansions at JFK. sured as long as Manhattan con- Converting from euros will cost 20 currency-rate fluctuations. “NYC & “something we’ll see over the next Some Queens cheerleaders say tinues to be so expensive. The av- cents more for every $2 hot dog,and Company’s presence in a strategic five to seven years.” the next boost could come from erage apartment rent there was a Canadian tourist will lose $3.40 on mix of 28 international markets helps At the same time, more people tech as it spreads from its home base nearing $4,000 at the end of 2014, top of every $50 meal. soften the impact of changing eco- are willing to work and live outside in midtown south along the East according to real estate firm Dou- “A lot of my friends took trips over nomic circumstances,” said CEO Manhattan. River, spurred by the $2 billion glas Elliman. Despite recent gains, here when the dollar was really low, Fred Dixon in a statement.” “It’s just acceptable to be in Cornell NYC Tech engineering the average is Queens is about and that saved them a lot of money,” Indeed, hotel-room prices have these places in a business context,” school on Roosevelt Island. $2,500. Ⅲ said Lars Hansen, a tourist from continued to increase,and occupan- Denmark who recently returned for cy rates remain at record highs. his second trip to New York. “It’s “We’ve certainly watched the something to think about.’’ dollar—it’s getting stronger and Even incremental cost differences may have an impact,” said Jonathan Wall St., tech expect gains could add up to bad news for the city’s Tisch, chairman of Loews Hotels. tourism industry, which has become “But so far we have not seen any de- Continued from Page 11 companies are clear throughout the a $60 billion mainstay of the local cline in our business.” in the economy of New York. economy.“The Internet has created economy. A strong dollar erodes the Another big boost came from an insatiable appetite for content, buying power of foreign visitors and A lagging indicator 7,000 new, better-paying jobs in the which has given rise to a new cre- encourages domestic travelers to take Still,currencies have weakened in arts sector that lured Ms. Reder to ative class with endless financial re- advantage of better deals abroad nine of the city’s 10 largest tourist New York.Next year will see the cre- sources,”said William Hereford,30, rather than coming to New York. markets, as well as in many of the ation of more high-paying jobs on a freelance photographer whose “There’s a direct relationship be- emerging markets NYC & Compa- Wall Street, construction and the professional success provides an ex- tween exchange rates and tourism ny has targeted for future growth. booming tech industry. ample of this shift. revenue,”said economist Merih Uc- The very strength of the city’s inter- Take Wall Street, for example, For several years, Mr. Hereford tum,director of CUNY’s economics national marketing could backfire if which essentially treaded water last has both expanded the number of Ph.D. program. “I’m sure the hotels it turns out that international visitors, year. Strong markets as well as in- HILLARY REDER was drawn to New York by his clients and acquired better- and restaurants will be affected.” who account for about half of overall creased merger-and-acquisition ac- better-paying jobs in the arts sector. paying customers, allowing him to The Intercontinental Exchange tourism spending, are more sensitive tivity are expected to lead to new frequent the same upscale restau- dollar index is up 11% since July, its to currency effects than expected. hiring, and deferred compensation rants and service businesses of Wall highest level since 2006. The dollar Trouble could be months away should boost compensation well the office space leased in 2014, ac- Street workers. also is up against currencies not even because the correlation between a past the average salary of $350,000 cording to Cushman & Wakefield, counted in the index, such as those strong dollar and occupancy rates is in the financial-services sector of re- second only to financial services. ‘A lot of momentum’ of Brazil and Australia, which sent a often strongest after a year’s lag. cent years.Relatively well-paid con- In recent years, tech and similar Even with the pickup in the na- combined 1.5 million visitors to Many foreign travelers plan their struction jobs are also expected to sectors have added more than 55,000 tional economy,New York continues New York last year. vacations far in advance. grow (see related story on Page 12). jobs, estimated Ken McCarthy, an to outperform the rest of the country. In the past decade,the number of Ms. Uctum isn’t convinced that The biggest gains will come in economist at Cushman & Wakefield. Since the Great Recession ended,the domestic and international visitors the city’s unique global image can the burgeoning tech sector, whose “Creative tech companies are tapping city’s employment has increased to New York City has climbed by trump the macroeconomics of slow- average annual wage of more than into the talented workforce in New 11%, to a record 4 million, while the half, to some 55 million annually. ing world economies and weaken- $60,000 is among the highest in the York,’’ he said.“These jobs tend to be nation’s payrolls have grown 7.5%. The results have been an explosion ing currencies abroad. “Everything city. Creative tech companies like higher-paying, and they definitely “I feel a lot of momentum in the of jobs, with tourism-related em- is going in the same direction,” she Google, Amazon, BuzzFeed, Twit- support stronger income growth.’’ economy,” said independent econo- ployment surging 22%, three times explained. “I don’t think marketing ter and IBM accounted for 27% of all The ripple effects from these mist Barbara Byrne Denham. Ⅲ the city’s overall increase. will make any difference.” Ⅲ

January 5, 2015 | Crain’s New York Business | 13 REPORT ECONOMIC OUTLOOK

Amazon’s law of the jungle FRIEND, FOE OR FRENEMY?

Continued from Page 1 lies Amazon Prime, whose sub- category—on the Amazon Fashion APPAREL. Amazon Fashion has had mixed results. for both online food-delivery servic- scribers can stream music, movies, site have met with “mixed success at Luxury giant LVMH, parent of Louis Vuitton and es to operate profitably is an open TV shows and e-books for “free” for best,” wrote market-research firm Marc Jacobs, has steered clear of the site. question. A FreshDirect spokes- $99 a year, in addition to receiving L2 in November. Prestige brands Shopbop.com, a smaller Amazon satellite site, woman said the market has “room for free shipping. Spending by Prime’s have shied away from Amazon’s bar- does better, according to research firm L2. many players.” But the founder and estimated 40 million U.S.members is gain-oriented environment. CEO of Amazon,who was not made almost double that of nonmembers, “Prestige is an area where Ama- BOOK PUBLISHING. Barnes & Noble’s one victory: available for comment, may not care according to RBC Capital Markets. zon wants to play,” said L2 analyst The chain refused to carry print editions of Amazon what the answer is. Membership in Amazon Prime Mabel McLean. “But they’ve had Publishing titles—dooming Amazon’s attempt to Fresh will cost $299 (the delivery more success with the mid-tier NY market is key to it all build a New York-style literary house. Amazon’s service is free right now to Prime brands.”Amazon did not respond to publishing program is now sticking with mysteries Despite the razor-thin margins members). The bet is that Prime requests for comment. and romance novels from mostly unknown authors. in grocery sales—and a stock price Fresh members will want to make that nosedived last year as losses the most of that investment—and Shrugging at lost billions mounted—the company has rolled will be even better customers. Mr. Bezos, a famously frugal and BOOKSELLING (E-BOOKS). Amazon stalled ship- out AmazonFresh in five markets “Amazon isn’t necessarily going hard-charging boss, remains un- ments of Hachette titles for months before coming around the country. It is serving to make money on Fresh,” said daunted.As he said at a Business In- to terms over e-book pricing. But with Amazon’s Brooklyn from a huge former Path- Morningstar analyst R.J. Hottovy, sider conference in Manhattan in 63% share of the market, the war’s not over. mark site in New Jersey. who thinks the company’s shares are December, he’s lost billions of dol- Whatever it costs to get there,Mr. undervalued. “[Food] is a tough, lars on failures, including the Fire BOOKSELLING (PRINT). Amazon’s hefty share of Bezos wants to make his e-commerce low-margin business. But if it keeps phone last year. But “it’s companies print book sales, combined with the shift to e-books giant as central to everyday shopping people within the Amazon ecosys- that don’t experiment,that don’t em- for about a third of the market, continues to weaken as the king of retail, Wal-Mart. New tem, then it’s worthwhile.” brace failure,” that get into trouble, Barnes & Noble, which is down to 658 stores, 68 York, the nation’s largest market, is Mr. Bezos’ investment in that he said. fewer than in 2009. key to that strategy. ecosystem is taking a toll, however. Amazon’s champions in the in- “Bezos’ ambition is for Amazon The company, marginally profitable vestor community are betting on his FINANCE. Amazon Payments, with growing offerings to be the biggest retailer in the at best, is expected to lose $350 mil- strategy for the long term and be- for consumers and merchants, could one day help world,” said Brad Stone, author of lion when it announces its results for lieve that profits will come. turn Amazon into “a very formidable” financial- the Amazon history The Everything 2014.That and slowing growth—its “The company and its aggressive services player, said fin-tech investor Simon Yoo of Store. “The two biggest, most chal- projected 20% revenue jump in growth strategies continue to instill Green Visor Capital. lenging pieces to that are apparel 2014, to $89 billion, would be its fear throughout the global retail in- and groceries.” lowest growth rate since 2001— dustry in numerous categories in GENERAL MERCHANDISE. Big retailers are watching Groceries have long been a holy pushed the stock down 22% last year. which it competes, particularly with grail for online retailers—a logisti- “The Street is finally beginning its entrance into grocery and apparel their backs. Macy’s and Bloomingdale’s, among cal nightmare, but a $700 billion to question [Amazon’s] economics,” categories,” wrote Nomura’s analyst others, have been investing in same-day local market in the U.S., with online sales said Forrester e-commerce analyst team when the bank initiated cover- delivery. that are forecast to hit $21 billion in Sucharita Mulpuru.“The more they age in November with a “buy”rating. 2016, according to Forrester Re- get questioned,you get a reverse fly- And though Ms. Aydintasbas GROCERIES. Amazon continues expanding in search. Yet for Amazon, food is wheel—prices will have to go up and still favors FreshDirect—for its Brooklyn, going head-to-head with FreshDirect. about a lot more than money. then growth comes down.” meat selection and its recyclable Though it faces competition from lower-cost The company’s strategy since it Amazon also faces growing packaging—she is being won over. models, including Instacart and Google Express, started out as an online bookstore in competition from delivery models, On a recent night, when it was well AmazonFresh could upset a lot of grocery carts, 1994 has been to provide ever lower like those employed by Instacart, past FreshDirect’s 6 p.m. deadline including those at Whole Foods and Fairway. prices and faster service. Customers Google Express and eBay,that con- for next-morning delivery, she put flocking to the site give Amazon the nect consumers to local stores via in an order on AmazonFresh for TELEVISION. Amazon Prime Instant Video, by clout and cash to further cut prices couriers or freelance shoppers. gluten-free crackers and hemp milk competing with Netflix, has been a boon to HBO, and delivery times—which helps it Meanwhile, an Amazon spokes- for her 2-year-old son—and got de- CBS and others looking to license shows to the continue to add market share. woman said the company was “very livery first thing the next day. highest bidder. But Amazon’s original programs, This “flywheel” approach under- pleased” with customer reaction to “It was shockingly fast,” she re- which are getting better, could pose a threat its Brooklyn food venture.However, called. “I still like FreshDirect a lit- someday. —MATTHEW FLAMM LISTEN to a discussion at attempts to break into luxury fash- tle better, but we’re excited there’s CrainsNewYork.com/podcasts Ⅲ Bookselling source: Codex Group ion—a relatively small but lucrative another option.” amazon.com; ap images; bloomberg news Wall Street wallflowers: Bankers sit out the boom

to people who make an average an- that profit will slip at Goldman by tios that govern the amount of cash budget, to $500 million. A report BY AARON ELSTEIN nual wage of $360,000.But it is clear 6% and at Morgan Stanley by 16%. that banks must hold in proportion from PricewaterhouseCoopers this that amid all the excitement—and For New York,the continued dif- to their loans or trades. (Banks re- past November said financial insti- The stock market hits new heights, jobs—being created throughout the ficulties mean the ranks of the city’s cently got a reprieve on the part of the tutions would spend 50% more on and unemployment in New York city,2015 is shaping up to be yet an- best-paid workforce will shrink fur- Dodd-Frank law that deals with de- cybersecurity in 2016 than last year, City has sunk to its lowest level since other year of cost-cutting and re- ther. With an eye on lowering costs, rivatives.) Other rules concern how when they spent $4 billion. the dark days of 2008. Yet the city’s structuring at New York’s biggest banks are moving more jobs from much short-term funding banks can “I hear all the time from people bankers, who historically have en- banks, the pattern ever since the fi- the world’s financial capital to lo- use or how much control they have in inside that banks are dinosaurs joyed the boom times more than nancial crisis faded away.The sort of cales like Jersey City and Tampa, determining the perceived riskiness when it comes to technology,” Ms. most, are sitting out the party. profit growth that JPMorgan Chase Fla. Last year, the share of securi- of assets on their balance sheets. Rodriguez Valladares said. The dour mood was captured by a or Goldman Sachs would be expect- ties-industry jobs based in the city “These developments may not To Mr. Wendel, the problem firm called Financial Institutions ed to generate from a healthy U.S. fell to under 19%, below the 30% be popular among banks or their isn’t that banks are dinosaurs. It’s Consulting, which last month pub- economy will be stifled by a long list share enjoyed decades ago,when the shareholders,” said Mayra Rod- that bankers have lost their roar. lished a newsletter with the headline of rising costs, ranging from com- business was much smaller. riguez Valladares of MRV Associ- “Bankers have diminished to be- “When Did It Stop Being Fun?” plying with new regulations to pro- Top jobs for bankers and money ates, which works with regulators come mouse-like,” he wrote.“While The “it”was the business of banking. tecting against cyberattacks. managers are remaining in the city, and financial institutions.“But there we will never return to [the] old “Many bankers are simply hang- so tax collections on Wall Street- is a strong public interest in making times, true innovation and appro- ing on, not enjoying their jobs but Profits flat—or even down generated wealth are holding steady. the banking system safer.” priate risk-taking can make a come- sticking with them because of eco- Nomura Securities analyst But the industry’s middle class is be- Not all the pressures on banks are back.Doing so requires senior man- nomic necessity and lack of choice,” Steve Chubak estimated that prof- ing hollowed out slowly. directly tied to regulations. In light agement to assert itself to question wrote FIC’s president,Charles Wen- it at JPMorgan in 2015 will be Nor are pressures on banks likely of high-profile attacks on computer current requirements ... and refocus del, whose résumé includes stints at $20.5 billion—massive, but almost to ease.In the next few years,a raft of networks at JPMorgan,Chief Exec- bankers upon clients and their Citigroup, Mercer and McKinsey. exactly the same amount as expect- new regulations will begin to take ef- utive Jamie Dimon last year said his emerging needs versus seemingly Sympathy may not come easily ed for 2014. Mr. Chubak predicts fect.Some of the changes concern ra- bank would double its technology ever-increasing internal hurdles.” Ⅲ

14 | Crain’s New York Business | January 5, 2015 NEW Presents YORK STORIES

Hosted by Jill Kaplan, Publisher Crain’s New York Business Profiles of Entrepreneurs in the 5 boroughs

Mondays at 9pm

Crains New York @crainsnewyork TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR EMAIL [email protected] TELECOMMUNICATIONS PUBLIC & LEGAL NOTICES NYC'S MOTOROLA NOTICE: Name of foreign LLC is DJR Notice of Qualification of 1901 Partners Notice of Qual. of Two Sigma Open Notice of Qualification of SILVERSTEIN MOTOTRBO SPECIALISTS Management LLC. Applic. for Auth. Management GP, LLC. Authority filed Source, LLC, Auth. filed Sec'y of MB PROPERTY OWNER LLC. filed in NYS DOS 10/1/13 re fictitious with NY Dept. of State on 11/3/14. State (SSNY) 4/15/14. Office loc.: NY Authority filed with Secy. of State of NY TM MOTOTRBO name DJR MGMT OF NY LLC. Office location: NY County. LLC County. LLC org. in DE 4/14/14. SSNY (SSNY) on 11/13/14. Office location: Professional Digital Two-way Radio System provides significant productivity Jurisdiction: DE & formation 8/15/13. formed in DE on 6/30/14. NY Sec. of desig. as agent of LLC upon whom NY County. LLC formed in Delaware gains - reliably and affordably. Office in NY State: NY County; St. State designated agent of LLC upon process against it may be served. (DE) on 11/10/14. SSNY designated • Clearer voice capability and enhanced address - 255 Hudson St. Apt. PHB, whom process against it may be SSNY shall mail copy of proc. to Att: as agent of LLC upon whom process battery life NY, NY 10013. NY Sec. of State served and shall mail process to the Matthew Siano, Esq., 100 Ave of the against it may be served. SSNY shall • Integrated voice and data for better productivity and privacy designated as agent of the LLC for principal business addr.: 350 Park Ave., Americas, NY, NY 10013. DE off. addr.: mail process to c/o Corporation • Text messaging service of process. SOS to mail a 13th Fl., NY, NY 10022, Attn: Neil CSC, 2711 Centerville Rd., Wilmington, Service Co. (CSC), 80 State St., Albany, • Doubles channel call capacity for copy of any process agst LLC to c/o Wallack. 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Purpose: any lawful activity. upon whom process against it may be agent of PLLC upon whom process 19901. Purpose: Any lawful activity. Any Lawful Purpose. served. SSNY shall mail process to: The LLC, 153 East Broadway, NY, NY against it may be served. SSNY shall Notice of Formation of 215 Moore St 10002. Purpose: any lawful activity. mail process to c/o Seth E. Notice of Qualification of 85 Broad Notice of Qualification of 85 Broad Development LLC. Arts. of Org. filed Zuckerman, Esq., 18 Columbia Tpke, Property Manager LLC. Authority filed Propco LLC. Authority filed with NY with Secy. of State of NY (SSNY) on Ste, 200, Florham Park, NJ 07932- with NY Dept. of State on 12/3/14. Dept. of State on 12/3/14. Office 12/3/14. Office location: NY County. Notice of Qualification of Carlyle Asia 2266. Purpose: Architectural. Office location: NY County. Princ. bus. location: NY County. Princ. bus. addr.: SSNY designated as agent of LLC Structured Credit Opportunities addr.: 200 State St., Ste. 5, Boston, MA 200 State St., Ste. 5, Boston, MA upon whom process against it may Fund-A, L.P. Authority filed with NY Notice of Formation of NYCHA 02109. LLC formed in DE on 11/10/14. 02109. LLC formed in DE on 11/13/14. be served. SSNY shall mail process Dept. of State on 12/11/14. Office Triborough Preservation LLC. Arts. of NY Sec. of State designated agent of NY Sec. of State designated agent of to: c/o The LLC, 711 Fifth Avenue, location: NY County. LP formed in Org. filed with NY Dept. of State on LLC upon whom process against it LLC upon whom process against it 16th Fl., NY, NY 10022. Purpose: any Cayman Islands (CI) on 11/17/14. NY 11/12/14. Office location: NY County. may be served and shall mail process may be served and shall mail process lawful activity. Sec. of State designated agent of LP Sec. of State designated agent of to: c/o CT Corporation System, 111 to: c/o CT Corporation System, 111 upon whom process against it may be LLC upon whom process against it 8th Ave., NY, NY 10011, regd. agent 8th Ave., NY, NY 10011, regd. agent served and shall mail process to the may be served and shall mail process upon whom process may be served. upon whom process may be served. Notice of Formation of: SOHO PIXEL principal business addr.: c/o The to: c/o New York City Housing DE addr. of LLC: c/o The Corporation DE addr. of LLC: c/o The Corporation LLC. Arts of Org. filed with Secy of Carlyle Group, 520 Madison Ave., NY, Authority, 250 Broadway, 9th Fl., NY, NY Trust Co., 1209 Orange St., Trust Co., 1209 Orange St., State of NY (SSNY) on 07-25-2014. NY 10022. CI addr. of LP: c/o 10007, principal business address. Wilmington, DE 19801. Cert. of Form. Wilmington, DE 19801. Cert. of Form. Off. Loc.: New York County. SSNY Intertrust Corporate Services (Cayman) Purpose: all lawful purposes. filed with DE Sec. of State, 401 filed with DE Sec. of State, 401 designated as agent of LLC upon Ltd., 190 Elgin Ave., George Town, Federal St., Dover, DE 19901. Federal St., Dover, DE 19901. whom process against it may be Grand Cayman KY1-9005, CI. Name/ served. SSNY shall mail process to: Notice of Formation of SD Builders Purpose: all lawful purposes. Purpose: all lawful purposes. addr. of genl. ptr. available from NY 400 E 56 St STE 100.New York, NY and Construction LLC. Arts. of Org. Sec. of State. Cert. of LP filed with 10022. Purpose: Any lawful activity. filed with Secy. of State of NY (SSNY) Notice of Formation of BH-MIO, LLC. Notice of Qualification of GLL BVK Registrar of Exempted LPs, Govt. on 11/05/14. Office location: NY Arts. of Org. filed with Secy. of State Properties 2014, L.P. Authority filed Administration Bldg., 133 Elgin Ave., County. SSNY designated as agent of NY (SSNY) on 11/21/14. Office with NY Dept. of State on 7/16/14. PERSONAL PODIATRY NY PLLC, a George Town, Grand Cayman, CI. of LLC upon whom process against location: NY County. SSNY designated Office location: NY County. Princ. Prof. LLC, Arts. of Org. filed with the Purpose: all lawful purposes. it may be served. SSNY shall mail as agent of LLC upon whom process bus. addr.: 199 Fremont St., Ste. SSNY on 11/12/2014. Office location: process to: c/o Slate Property Group against it may be served. SSNY shall 1150, San Francisco, CA 94105. LP NY County. SSNY has been desig- Notice of Qualification of VNO 33-00 LLC, 850 Third Ave., Ste. 16-B, NY, mail process to Corporation Service formed in DE on 4/15/14. NY Sec. of nated as agent upon whom process Northern Blvd LLC. Authority filed NY 10022, Attn: Martin Nussbaum. Co., 80 State St., Albany, NY 12207, State designated agent of LP upon against it may be served. SSNY shall with NY Dept. of State on 12/2/14. Purpose: any lawful activities. regd. agent upon whom and at which whom process against it may be mail process to: 20 East 46th St, NY, Office location: NY County. Princ. bus. process may be served. Purpose: served and shall mail process to: c/o NY 10017. Purpose: To Practice The addr.: 210 Route 4 East, Paramus, NJ Notice of Qualification of DFB Any lawful activity. CT Corporation System, 111 8th Profession Of Podiatry. 07652. LLC formed in DE on 11/19/14. Insurance Group LLC. Filed on Ave., NY, NY 10011, regd. agent NY Sec. of State designated agent of 10/1/2014 with the Secretary of Stae CHAMM ACQUISITIONS, LLC. App. upon whom process may be served. Notice of Formation of IMPETUS LLC upon whom process against it of New York. LLC formed in TX on for Auth. filed with the SSNY on DE addr. of LP: 1209 Orange St., PHYSICAL THERAPY PLLC. Arts. of may be served and shall mail process 2/18/14. Address of LLC: 117 E 11/13/14. Originally filed with the Wilmington, DE 19801. Name/addr. Org. filed with Secy. of State of NY to: c/o CT Corporation System, 111 Kingsmill, Pampa, TX 79065. SSNY Secretary of State of Delaware on of genl. ptr. available from NY Sec. of (SSNY) on 11/24/14. Office location: 8th Ave., NY, NY 10011, regd. agent has been designated as an agent 11/06/14. Office: New York County. State. Cert. of LP filed with DE Sec. NY County. SSNY designated as upon whom process may be served. upon whom process against it may be SSNY designated as agent of the LLC of State, 401 Federal St., Dover, DE agent of PLLC upon whom process DE addr. of LLC: 1209 Orange St., served. Certificate of LLC filed with upon whom process against it may 19901. Purpose: all lawful purposes. against it may be served. SSNY shall Wilmington, DE 19801. Cert. of Form. Secretay of State of TX located at PO be served. SSNY shall mail copy of mail process to Corporation Service filed with DE Sec. of State, 401 Box 12887, Austin, TX 78711-2887 process to the LLC, c/o Daniels Norelli Notice of Qualification of AITHON Co., 80 State St., Albany, NY 12207- Federal St., Dover, DE 19901. Scully & Cecere, P.C., One Old Country CAPITAL MANAGEMENT, LP. Appl. 2543. Purpose: Any lawful activity. Purpose: any lawful activity. Notice of Qualification of RELATED Road, Suite LL5, Carle Place, NY for Auth. filed with Secy. of State of NY REAL ESTATE FUND II (FEEDER), L.P. 11514. Purpose: Any lawful purpose. (SSNY) on 12/02/14. Office location: NOTICE FOR FORMATION of a limited Notice of Qualification of APOLLO NA Appl. for Auth. filed with Secy. of State NY County. LP formed in Delaware liability company (LLC). The name of MANAGEMENT II, LLC. Authority filed of NY (SSNY) on 12/24/14. Office Notice of Qualification of SHS Upper (DE) on 10/02/14. Princ. office of LP: the limited liability company is 53 EAST with Secy. of State of NY (SSNY) on location: NY County. LLC formed in City NY II LLC. Authority filed with 501 Madison Ave., 8th Fl., NY, NY 7 STREET LLC. The date of filing of 12/17/14. Office location: NY County. Cayman Islands (C.I.) on 12/08/14. Secy. of State of NY (SSNY) on 10022. SSNY designated as agent of the articles of organization with the LLC formed in Delaware (DE) on Princ. office of LLC: 60 Columbus 12/08/14. Office location: NY County. LP upon whom process against it may Department of State was November 18, 08/15/14. Princ. office of LLC: 9 W. Circle, NY, NY 10023. SSNY designated LLC formed in Delaware (DE) on be served. SSNY shall mail process 2014. The County in New York in 57th St., 43rd Fl., NY, NY 10019. SSNY as agent of LLC upon whom process 05/21/14. SSNY designated as agent to the Partnership at the princ. office which the office of the company is designated as agent of LLC upon against it may be served. SSNY shall of LLC upon whom process against it of the LP. The regd. agent of the located is New York. The Secretary of whom process against it may be mail process to c/o Related Fund may be served. SSNY shall mail company upon whom and at which State has been designated as agent of served. SSNY shall mail process to Management, LLC at the princ. office process to: c/o Cheer Land process against the company can be the company upon whom process the LLC, Attn: John J. Suydam at the of the LLC. C.I. addr. of LLC: c/o Investments Group Limited, 152 West served is Harold Lehr at the princ. may be served, and the Secretary of princ. office of the LLC. DE addr. of Maples Corporate Services Limited, 57th St., Ste. 3901, NY, NY 10019. office of the LLC. Name and addr. of State shall mail a copy of any process LLC: c/o Corporation Service Co., P.O. Box 309, Ugland House, Grand Address to be maintained in DE: each general partner are available against the company served upon him 2711 Centerville Rd., Ste. 400, Cayman, C.I. KY1-1104. Cert. of Form. Corporation Service Company, 2711 from SSNY. DE addr. of LP: 2711 or her to c/o Stefka Nazarkewycz, 182 Wilmington, DE 19808. Arts. of Org. filed with Registrar of Companies, P.O. Centerville Rd., Ste. 400, Wilmington, Centerville Rd., Ste. 400, Wilmington, 2nd Avenue, Apt #2, New York, New filed with the Secy. of State of the Box 123, Ground Fl., Government DE 19808. Arts of Org. filed with the DE 19808. Cert. of LP filed with York 10003. The business purpose of State of DE, Dept. of State, Div. of Admin. Bldg., 133 Elgin Ave., George DE Secy. of State, John G. Townsend Secy. of State of the State of DE, 401 the company is to engage in any and Corps., John G. Townsend Bldg., Town, Grand Cayman, C.I. KY1- Bldg., 401 Federal St., Dover, DE Federal St., Dover, DE 19901. all business activities permitted under 401 Federal St., Ste. 4, Dover, DE 9000. Purpose: Any lawful activity. 19901. Purpose: any lawful activities. Purpose: Any lawful activity. the laws of the State of New York. 19901. Purpose: Any lawful activity.

16 | Crain’s New York Business | January 5, 2015 TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR EMAIL [email protected] PUBLIC & LEGAL NOTICES Notice of Qualification of Carlyle Asia Notice of Qualification of 345 Park Notice of Qualification of STURM Qualification of Blackstone Real Estate Notice of Formation of Steuben Debt Structured Credit Opportunities Fund, LLC. Authority filed with NY Dept. of FAMILY OFFICE LLC. Authority filed Associates VIII L.P. Authority filed LLC, Art. of Org. filed Sec'y of State L.P. Authority filed with NY Dept. of State on 10/30/14. Office location: NY with Secy. of State of NY (SSNY) on with the Sect of State of NY (SSNY) (SSNY) 3/17/14. Office location: NY State on 12/11/14. Office location: NY County. Princ. bus. addr.: 345 Park 11/12/14. Office location: NY County. on 10/28/14. Office Loc: NY County. County. SSNY designated as agent County. LP formed in Cayman Islands Ave., NY, NY 10154. LLC formed in LLC formed in Delaware (DE) on LP formed in DE on 10/22/14. SSNY of LLC upon whom process against (CI) on 7/18/14. NY Sec. of State DE on 11/13/13. NY Sec. of State 04/17/14. SSNY designated as agent has been designated as agent of LP it may be served. SSNY shall mail designated agent of LP upon whom designated agent of LLC upon whom of LLC upon whom process against upon whom process against it may copy of process to Bluestone Group, process against it may be served and process against it may be served it may be served. SSNY shall mail be served and shall mail process to: 225 Broadway, NY, NY 10007. shall mail process to the principal and shall mail process to: c/o CT process to c/o Corporation Service c/o The Blackstone Group L.P., 345 Purpose: any lawful activities. business addr.: c/o The Carlyle Group, Corporation System, 111 8th Ave., NY, Co., 80 State St., Albany, NY 12207- Park Avenue, NY, NY 10154. DE 520 Madison Ave., NY, NY 10022. CI NY 10011, regd. agent upon whom 2543. DE addr. of LLC: 2711 address of LP: 200 Bellevue Pkwy, Ste Notice of Formation of Peninsula addr. of LP: c/o Intertrust Corporate process may be served. DE addr. of Centerville Rd., Ste. 400, Wilmington, 210, Wilmington, 19809. Name/addr Realty Holdings LLC, Art. of Org. filed Services (Cayman) Ltd., 190 Elgin LLC: 1209 Orange St., Wilmington, DE DE 19808. Arts. of Org. filed with The of genl ptr avail from SSNY. Cert of Sec'y of State (SSNY) 7/2/14. Office Ave., George Town, Grand Cayman 19801. Cert. of Form. filed with DE DE Secy. of State, Div. of Corps., LP filed with DE Sect of State, 401 location: NY County. SSNY designated KY1-9005, CI. Name/addr. of genl. Sec. of State, 401 Federal St., Dover, DE John G. Townsend Bldg., 401 Federal St, Ste 4, Dover, DE 19901. as agent of LLC upon whom process ptr. available from NY Sec. of State. 19901. Purpose: all lawful purposes. Federal St., Ste. 4, Dover, DE 19901. Purpose: any lawful activity. against it may be served. SSNY shall Cert. of LP filed with Registrar of Purpose: Any lawful activity. mail copy of process to Bluestone Exempted LPs, Govt. Administration Notice of Formation of 239 HENRY Notice of Qualification of Budget Group, 225 Broadway, NY, NY 10007. Bldg., 133 Elgin Ave., George Town, PROPERTY LLC. Arts. of Org. filed SAN BLAS LLC. Art. of Org. filed Travel, LLC. Authority filed with NY Purpose: any lawful activities. Grand Cayman, CI. Purpose: all with Secy. of State of NY (SSNY) on with the SSNY on 10/23/14. Office: Dept. of State on 10/7/14. Office lawful purposes. 11/14/14. Office location: NY County. New York County. SSNY designated location: NY County. Princ. bus. Notice of Formation of Parker Ave JV Princ. office of LLC: Chaves Family as agent of the LLC upon whom addr.: 499 7th Ave., 18th Fl., South LLC, Art. of Org. filed Sec'y of State Notice of Formation of DT 153 Holdings, LLP, 111 John St., Ste. 312, process against it may be served. Tower, NY, NY 10018. LLC formed in (SSNY) 5/23/14. Office location: NY Bruckner LLC. Art/Org. filed with SSNY NY, NY 10038. SSNY designated as SSNY shall mail copy of process to DE on 2/25/14. NY Sec. of State County. SSNY designated as agent 10/3/13. NY office location: NY agent of LLC upon whom process the LLC, 79 Washington Place, Suite designated agent of LLC upon whom of LLC upon whom process against County. SSNY designated as agent against it may be served. SSNY shall #1C, New York, NY 10011. Purpose: process against it may be served it may be served. SSNY shall mail for process. SSNY shall mail copy of mail process to Corporation Service Any lawful purpose. and shall mail process to: PO Box copy of process to Bluestone Group, process to: c/o Princeton Holdings Co., 80 State St., Albany, NY 12207- 680999, Franklin, TN 37068-0999. 225 Broadway, NY, NY 10007. LLC, 375 Park Ave., Ste 1604, NY, 2543. Purpose: Any lawful activity. Notice of Qualification of 458 NY DE addr. of LLC: 1209 Orange St., Purpose: any lawful activities. NY 10152. Any lawful act or activity. LLC. Authority filed with NY Dept. of Wilmington, DE 19801. Cert. of Form. Qualification of Blackstone Real Estate State on 11/6/14. Office location: NY filed with DE Sec. of State, 401 1115 COLLEGE AVE. LLC, a domestic Notice of Formation of COJI, LLC. Partners VIII.TE.2 L.P. Authority filed County. LLC formed in DE on Federal St., Dover, DE 19901. LLC, filed with the SSNY on 11/13/14. Arts. of Org. filed with Secy. of State with the Sect of State of NY (SSNY) 9/10/14. NY Sec. of State designated Purpose: all lawful purposes. Office location: New York County. of NY (SSNY) on 12/08/14. Office on 11/19/14. Office Loc: NY County. agent of LLC upon whom process SSNY is designated as agent upon location: NY County. SSNY designated LP formed in DE on 11/12/14. SSNY against it may be served and shall Notice of Formation of Lau’s Realty whom process against the LLC may as agent of LLC upon whom process has been designated as agent of LP mail process to: c/o CT Corporation Associate LLC, Art. of Org. filed be served. SSNY shall mail process to against it may be served. SSNY shall upon whom process against it may System, 111 8th Ave., NY, NY 10011. Secy. of State of NY (SSNY) on Mandell Mandell LLP, 8002 Kew mail process to Corporation Service be served and shall mail process to: DE address of LLC: c/o The 07/23/2014. Office location: New Gardens Rd., Ste. 606, Kew Gardens, Co., 80 State St., Albany, NY 12207, c/o The Blackstone Group L.P., 345 Corporation Trust Co., 1209 Orange York County. SSNY Designated as NY 11415-3606. General Purposes. regd. agent upon whom and at which Park Avenue, NY, NY 10154. DE St., Wilmington, DE 19801. Cert. of agent of LLC upon whom process process may be served. Purpose: address of LP: 200 Bellevue Pkwy, Ste Form. filed with DE Sec. of State, against it may be served. SSNY shall Any lawful activity. 210, Wilmington, 19809. Name/addr Bond Street Capital Group LLC. Arts. 401 Federal St., Dover, DE 19901. mail copy of process to: The LLC, 9 of Org. filed with Secy. of State of of genl ptr avail from SSNY. Cert of Purpose: all lawful purposes. Mott St., Suite #300, New York, NY LP filed with DE Sect of State, 401 NY (SSNY) on 10/30/14. Off. loc.: NY 35 PERRY ST. OWNERS LLC. Art. of 10013. Purpose: any lawful activity. Co. SSNY designated as agent of Org. filed with the SSNY on 12/02/14. Federal St, Ste 4, Dover, DE 19901. Notice of Qualification of UE Purpose: any lawful activity. LLC upon whom process may be Office: New York County. SSNY desig- Management LLC. Authority filed Notice of Formation of BUNN served. SSNY shall mail process to nated as agent of the LLC upon whom with NY Dept. of State on 11/18/14. GANSEVOORT, LLC. Arts. of Org. filed Qualification of Blackstone Real Estate 460 Park Ave South, Ste. 204, New process against it may be served. SSNY Office location: NY County. Princ. bus. with Secy. of State of NY (SSNY) on Partners VIII.F L.P. Authority filed with York, NY 10016. Purpose: General. shall mail copy of process to the LLC, addr.: 210 Route 4 East, Paramus, NJ 11/24/14. Office location: NY County. the Sect of State of NY (SSNY) on c/o Karasyk & Moschella, LLP, 233 07652. LLC formed in DE on 10/7/14. Princ. office of LLC: Mr. Hyun Soo Lee, 11/20/14. Office Loc: NY County. LP NOTICE OF FORMATION OF SHINE Broadway, Suite 2340, New York, NY NY Sec. of State designated agent of c/o Bunn Gansevoort, LLC, 1965 formed in DE on 11/12/14. SSNY has GLORY LLC. Arts of Org filed with 10279. Purpose: Any lawful purpose. LLC upon whom process against it Broadway, Ste. 16J, NY, NY 10023. been designated as agent of LP upon Secy of State of NY (SSNY) on may be served and shall mail process SSNY designated as agent of LLC whom process against it may be 11/19/14. Office location: NEW YORK to: c/o CT Corporation System, 111 upon whom process against it may Dana's Bakery NY, LLC. Arts. of Org. served and shall mail process to: c/o County. SSNY designated agent upon 8th Ave., NY, NY 10011, regd. agent be served. SSNY shall mail process filed with Secy. of State of NY (SSNY) The Blackstone Group L.P., 345 Park whom process may be served and upon whom process may be served. to the LLC at the addr. of its princ. on 10/16/14. Off. loc.: NY Co. SSNY Avenue, NY, NY 10154. DE address shall mail copy of process against DE addr. of LLC: 1209 Orange St., office. Purpose: Any lawful activity. designated as agent of LLC upon of LP: 200 Bellevue Pkwy, Ste 210, LLC to principal business address: whom process may be served. SSNY Wilmington, DE 19801. Cert. of Form. Wilmington, 19809. Name/addr of filed with DE Sec. of State, 401 8514 Broadway, Apt.5A, Elmhurst, shall mail process to c/o Dana genl ptr avail from SSNY. Cert of LP Notice of Formation of GENERATION NY 11373. Purpose: any lawful act. Pollack, PO Box 662, Franklin Lakes, Federal St., Dover, DE 19901. filed with DE Sect of State, 401 Purpose: any lawful activity. MEDICAL ASSOCIATES PLLC. Arts. NJ 07417. Purpose: General. Federal St, Ste 4, Dover, DE 19901. of Org. filed with Secy. of State of NY Notice of Formation of BAR CAPITAL Purpose: any lawful activity. Notice of Qualification of BGP (SSNY) on 11/24/14. Office location: LLC. Arts. of Org. filed with NY Dept. ACTIVE WORKING PARTNERS LLC, Tuscany HoldCo LLC. Authority filed NY County. Princ. office of PLLC: 21 of State on 11/20/14. Office location: a domestic LLC, filed with the SSNY Qualification of Blackstone Real Estate with NY Dept. of State on 12/10/14. E. 69th St., NY, NY 10021. SSNY NY County. Sec. of State designated on 11/12/14. Office location: New Partners VIII.TE.1 L.P. Authority filed Office location: NY County. Princ. designated as agent of PLLC upon agent of LLC upon whom process York County. SSNY is designated as with the Sect of State of NY (SSNY) bus. addr.: 510 Madison Ave., 8th Fl., whom process against it may be against it may be served and shall mail agent upon whom process against on 11/20/14. Office Loc: NY County. NY, NY 10022. LLC formed in DE on served. SSNY shall mail process to process to: CT Corporation System, the LLC may be served. SSNY shall LP formed in DE on 11/12/14. SSNY 12/2/14. NY Sec. of State designated Attn: Norbert Gleicher, Manager at 111 8th Ave., NY, NY 10011, regd. mail process to Rebecca Frankel, 37 has been designated as agent of LP agent of LLC upon whom process the princ. office of the PLLC. agent upon whom process may be W. 72nd St., #7E, NY, NY 10023. upon whom process against it may against it may be served and shall Purpose: Any lawful activity. served. Purpose: all lawful purposes. General Purposes. be served and shall mail process to: mail process to: c/o Willkie Farr & c/o The Blackstone Group L.P., 345 Gallagher LLP, 787 7th Ave., NY, NY NUM PANG FRANCHISING, LLC. Notice of Formation of HSC ATLANTIC, Notice of Qualification of PROTEAN Park Avenue, NY, NY 10154. DE 10019. DE addr. of LLC: c/o The App. for Auth. filed with the SSNY on LLC. Arts. of Org. filed with Secy. of COMPANY, LLC. Appl. for Auth. filed address of LP: 200 Bellevue Pkwy, Corporation Trust Co., 1209 Orange 11/13/14. Originally filed with the State of NY (SSNY) on 12/05/14. with Secy. of State of NY (SSNY) on Ste 210, Wilmington, 19809. Name/ St., Wilmington, DE 19801. Cert. of Secretary of State of Delaware on Office location: NY County. Princ. 12/24/14. Office location: NY County. addr of genl ptr avail from SSNY. Cert Form. filed with DE Sec. of State, 11/06/14. Office: New York County. office of LLC: 12 W. 23rd St., 4th Fl., LLC formed in Delaware (DE) on of LP filed with DE Sect of State, 401 Townsend Bldg., Dover, DE 19901. SSNY designated as agent of the LLC NY, NY 10010. SSNY designated as 12/11/12. SSNY designated as agent Federal St, Ste 4, Dover, DE 19901. Purpose: all lawful purposes. upon whom process against it may agent of LLC upon whom process of LLC upon whom process against it Purpose: any lawful activity. be served. SSNY shall mail copy of against it may be served. SSNY shall may be served. SSNY shall mail process Notice of Qualification of AITHON process to the LLC, c/o Daniels Norelli mail process to Hope Street Capital to c/o Corporation Service Co., 80 Notice of Qualification of SDCL EE CAPITAL GP LLC. Appl. for Auth. filed Scully & Cecere, P.C., One Old Country LLC at the princ. office of the LLC. State St., Albany, NY 12207-2543. Co (US) Management, LLC. Appl. for with Secy. of State of NY (SSNY) on Road, Suite LL5, Carle Place, NY Purpose: Any lawful activity. DE addr. of LLC: c/o CSC, 2711 Auth. filed with Secy. of State of NY 12/02/14. Office location: NY County. 11514. Purpose: Any lawful purpose. Centerville Rd., Ste. 400, Wilmington, (SSNY) on 10/14/14. Office loc.: NY LLC formed in Delaware (DE) on NOTICE OF FORMATION OF Dave DE 19808. Cert. of Form. filed with DE Cnty. LLC formed in Delaware on 11/06/14. Princ. office of LLC: 501 Qualification of Blackstone Real Estate Friedman 1, LLC. Articles of Secy. of State, 401 Federal St., Dover, 09/05/14. SSNY designated as agent Madison Ave., 8th Fl., NY, NY 10022. Partners VIII L.P. Authority filed with Organization filed with the Secretary DE 19901. Purpose: Any lawful activity. of LLC upon whom process against it SSNY designated as agent of LLC the Sect of State of NY (SSNY) on of State of NY (SSNY) on 10/24/2012. may be served. Orig. addr. of process: upon whom process against it may be 10/28/14. Office Loc: NY County. LP Office location: NEW YORK County. c/o Sustainable Development Capital, served. SSNY shall mail process to formed in DE on 10/22/14. SSNY has SSNY has been designated as agent LLC, 485 Madison Ave., 7th Fl., NY, the LLC at the princ. office of the LLC. been designated as agent of LP upon upon whom process against it may NY 10022. As amended by Cert. of The regd. agent of the company upon whom process against it may be be served. The Post Office address To place your classified Change filed on 11/21/14, SSNY whom and at which process against served and shall mail process to: c/o to which the SSNY shall mail a copy shall mail process to princ. office of the company can be served is Harold The Blackstone Group L.P., 345 Park of any process against the LLC LLC: 36 W. 44th St., Ste. 1412, NY, Lehr at the princ. office of the LLC. Avenue, NY, NY 10154. DE address served upon him/her is: c/o Max ad call Joanne Barbieri NY 10036. DE addr. of LLC: c/o DE addr. of LLC: c/o Corporation of LP: 200 Bellevue Pkwy, Ste 210, Markus Katz, P.C., 88 University National Corp. Research, Ltd., 615 S. Service Co., 2711 Centerville Rd., Ste. Wilmington, 19809. Name/addr of Place, New York, NY 10003. The DuPont Hwy., Dover, DE 19901. Cert. 400, Wilmington, DE 19808. Cert. of genl ptr avail from SSNY. Cert of LP principal business address of the LLC @ 212-210-0189 of Form. filed with DE Secy. of State, Form. filed with Secy. of State of the filed with DE Sect of State, 401 is: c/o Max Markus Katz, P.C., 88 401 Federal St., Ste. 4, Dover, DE State of DE, 401 Federal St., Dover, DE Federal St, Ste 4, Dover, DE 19901. University Place, New York, NY 10003. 19901. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. Purpose: any lawful activity. Purpose: any lawful act or activity.

January 5, 2015 | Crain’s New York Business | 17 FOR THE RECORD

schools.nyc.gov/offices/dcp/vendor/ CBRE. The landlord, Lightstone in $9,432,896. In the same period, he sold requestsforbids/default.htm. To make partnership with Lightstone Value 189,705 shares of common stock at ABOUT THIS SECTION inquiries, contact the Vendor Hotline PlusREIT,was represented by Matthew prices ranging from $83.48 to $84.02 FOR THE RECORD is a weekly listing of information from the public record at (718) 935-2300 or Gorman and Joshua Gettler of New per share, in a transaction worth that can help businesspeople in the New York area find opportunities, [email protected]. Street Realty Advisors. The asking rent $15,853,052. He now directly holds was not disclosed. 300,154 shares. potential new clients and updates on competitors. Housing Authority To ask questions or get more information on this section, contact Seeks competitive sealed bids by 10 ● Lululemon Athletica signed a lease for ● Henry Schein Inc. (HSIC) Crain’s research department at [email protected]. a.m. on Jan. 13 for service of 3,000 square feet at Brookfield Place at Stanley M. Bergman, chief executive electromagnetic locks at developments 250 Vesey St. The yoga apparel company and executive chairman, sold 69,600 in the five boroughs. Bid documents will occupy space in the courtyard. The shares of common stock at prices Listings are in alphabetical order. are available at nyc.gov/nychabusiness. tenant was represented by John Auber of ranging from $135.00 to $136.34 per NEW IN TOWN To make inquiries, contact Erneste the Auber Group. The landlord, share between Dec. 8 and Dec. 9, in a ● Delia’s Inc. Pierre-Louis at (212) 306-3609 or Brookfield Office Properties, was transaction worth $9,435,091. He now Companies that would like to have details 50 W. 23rd St., Manhattan [email protected]. represented in-house by Edward Hogan indirectly holds 1,426,440 shares. of openings published should submit Filed for Chapter 11 bankruptcy on and consultant Soozan Baxter. descriptions following this format to Dec. 7. The filing cites estimated assets Seeks competitive sealed bids by 10 a.m. ● Hain Celestial Group Inc. (HAIN) [email protected], with “New of $10,000,001 to $50 million and on Jan. 13 for Supply Management ● Chelsea Bagel signed a lease for 1,150 John B. Carroll, chief executive and in Town” in the subject line. estimated liabilities of $50,000,001 to Department inspection, testing, repair, square feet at 800 Second Ave., its second executive vice president, sold 79,916 $100 million. The creditors with the alteration and installation of range Manhattan location. The bagel bakery’s shares of common stock at prices ● COS largest unsecured claims are Quad hood fire-suppression systems at first store is at 139 W. 14th St. The ranging from $112.83 to $115.79 per 129 Spring St., Manhattan Graphics, owed $830,164.41; Epicor developments in Manhattan, Queens tenant was represented by Matthew share between Dec. 4 and Dec. 10, in a The clothing store opened in SoHo. Retail Solutions, owed $627,899.53; and and Staten Island. Bid documents are Schuss of Winick Realty Group. The transaction worth $9,117,600. He now H&M’s more expensive sister brand NYC Alliance Co., owed $626,323.89. available at nyc.gov/nychabusiness. landlord, Philips International, was directly holds 61,854 shares. offers modern separates for men and To make inquiries, contact Erneste represented by Hal Shapiro, also of women, such as sweaters with leather ● Trading Systems Associates Inc. Pierre-Louis at (212) 306-3609 or Winick Realty Group. The asking rent ● Broadridge Financial Solutions Inc. (BR) details on the shoulders and textured 40 Wall St., Manhattan [email protected]. was not disclosed. Richard J. Daly, chief executive, wool trousers for men, and flap-pocket Filed for Chapter 7 bankruptcy on Dec. president and director, exercised options tops and clean-edge wool coats for 11. The filing cites estimated assets of on 193,500 shares of common stock at women. $100,001 to $500,000 and estimated REAL ESTATE DEALS STOCK TRANSACTIONS $20.87 per share between Dec. 3 and liabilities of $100,001 to $500,000. The Dec. 8, in a transaction worth ● Marine Layer creditors with the largest unsecured Companies that would like to have details of Following are recent insider transactions at $4,038,345. In the same period, he sold 316 Bleecker St., Manhattan claims are Trading Systems Associates their recent transactions appear in these New York’s largest publicly held companies 168,507 shares of common stock at The San Francisco activewear store plc, owed $1,061,173.51; Intercompany listings should email descriptions following filed with the Securities and Exchange prices ranging from $45.30 to $45.71 opened its first New York City location, Loan, Israel, owed $513,975.96; and this format to [email protected], Commission by executives and major per share, in a transaction worth in the West Village. It features men’s and PANS (U.K.) Holdings Ltd., owed with “Real estate transaction” in the shareholders. Listings are in order of $7,666,482. He now directly holds women’s shirts made with pima cotton $130,500. subject line, or enter them online at transaction value.The information was 566,067 shares. and MicroModal yarns; women’s long- crainsnewyork.com/submitadeal. Deals are obtained from Thomson Reuters. sleeved shirts and lounge pants; and listed in order of square footage. ● Sirius XM Holdings Inc. (SIRI) men’s camping shirts. GOVERNMENT CONTRACT ● Estée Lauder Co. (EL) Patrick L. Donnelly, executive vice OPPORTUNITIES COMMERCIAL Ronald S. Lauder, chairman of Clinique president, general counsel and secretary, ● The Sill ● Alliance Mechanical Group signed a Laboratories, sold 250,000 shares of sold 1,322,920 shares of common stock 84 Hester St., Manhattan Following are selected contract five-year lease for 4,700 square feet at 15 common stock at prices ranging from at $3.62 per share on Dec. 1, in a The online plant seller opened its first opportunities recently announced by New W. 39th St. The mechanical-engineering $73.79 to $74.08 per share between transaction worth $4,783,150. He now brick-and-mortar shop, on the Lower York City agencies.To learn how to sell company will occupy the entire 10th Dec. 2 and Dec. 3, in a transaction directly holds 288,464 shares. East Side. It offers various seedlings in goods and services to city government, visit floor and will relocate from 1407 worth $18,502,606. He now directly locally made pots. www.nyc.gov/selltonyc. For a searchable Broadway.The tenant and the landlord, holds 6,364 shares. ● Time Warner Cable (TWC) database of current procurement notices, Northern Star Realty, were represented Robert D. Marcus, chief executive and ● Threes Brewing visit www.nyc.gov/cityrecord. Listings are by Philip Silverstein of Silverstein ● Time Warner Inc. (TWX) chairman, sold 15,730 shares of 333 Douglass St., Brooklyn alphabetical by category and department. Solutions. The asking rent was $42 per Jeffrey L. Bewkes, chief executive and common stock at prices ranging from The 8,000-square-foot brewery opened square foot. chairman, exercised options on 263,636 $147.68 to $148.17 per share on Dec. 5, in Gowanus. It features 20 lines of CONSTRUCTION SERVICES shares of common stock at $35.78 per in a transaction worth $2,329,492. He farmhouse-ale-style beer, coffee from ● Department of Design and Construction ● Cure Urgent Care signed a 15-year share on Dec. 1, in a transaction worth now directly holds 61,281 shares. Ⅲ Ninth Street Espresso, and food pop- Seeks competitive sealed bids by 11 a.m. lease for 2,900 square feet at 175 E. 96th ups such as Roberta’s pizza. on Jan. 15 for the installation of new St. The company offers walk-in clinic catch basins, and reconstruction of care at locations on Long Island and the collapsed or otherwise defective catch Upper West Side and will occupy a DEALS ROUNDUP COMPANY MOVES basins and appurtenances in the Bronx, ground-floor space in the 521-unit Brooklyn and Queens. Bid documents rental property.The tenant was TRANSACTION SIZE Companies that would like to have details are available at nyc.gov/buildnyc. To represented by Dmitry Levkov of TARGET/SELLERS (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE of recent moves published should submit make inquiries, contact Emmanuel Colliers International. The landlord, descriptions following this format to Charles at (718) 391-2200 or Rubin Schron, was represented by Jay EOP North California $3,500.0 Hudson Pacific Properties Inc. SB M&A Portfolio/Blackstone [email protected], with [email protected]. Gilbert of Newmark Grubb Knight Real Estate Advisors “Company Moves” in the subject line. Frank. The building’s asking rents are (Manhattan) ● Department of Parks and Recreation $145 to $150 per square foot. ● Fendi Fotolia/KKR & Co. $800.0 Adobe Systems Inc. SB M&A Seeks competitive sealed bids by 10:30 (Manhattan), TA Associates 598 Madison Ave., Manhattan a.m. on Jan. 13 for the reconstruction of RETAIL Management The luxury fashion line opened a comfort stations and facilities in ● Apple signed a lease for 20,000 square flagship store in midtown. It offers furs, Queens. Bid documents can be feet at 247 Bedford Ave. This will be the Portfolio of 12 single- $399.0 Gramercy Property Trust Inc. SB M&A men’s and women’s clothing, leather purchased in the Blueprint Room, company’s first location in Brooklyn. tenant net lease (Manhattan) goods, jewelry, shoes, accessories and Room 64, Olmsted Center, Flushing The tenant was represented by Chris assets/Dividend bags, such as its monster tote. Meadows Corona Park, Queens, from 8 DeCrosta of Crown Retail Services and Capital Diversified Property Fund Inc. a.m. to 3 p.m. The fee is $100, made Open Realty.The landlords, Red Sky ● Lululemon Men’s payable by company check or money Capital and Waterbridge, were Heritage Financial $253.4 Renasant Corp. SB M&A 127 Prince St., Manhattan order to the City of New York, Parks represented by a team from Lee NYC Group Inc./Castine Capital Management, The activewear shop opened its first and Recreation. To make inquiries, led by Peter Braus. Clover Partners, EJF men’s store, in SoHo. It features yoga, contact Michael Shipman at Capital, Endeavour running and cross-training apparel. (718) 760-6705 or michael ● CVS Health signed a lease for 12,200 Capital Advisors [email protected]. square feet at 757 Third Ave. The retailer Inc., Jacobs Asset ● Shen Beauty took space on the ground-floor corner Management (Manhattan), 88 S. Portland Ave., Brooklyn ● Housing Preservation and Development and basement of the building. The JAM Equity Partners The Cobble Hill organic beauty shop Seeks competitive sealed bids by 11 a.m. tenant was represented by Jason Pruger Banc Funds Co. opened a second location, in Fort on Jan. 13 for the demolition of five of Newmark Grubb Knight Frank. The 1835 Market St. $100.0 Carlton Associates Inc./ SB M&A Greene. It carries brands such as RMS buildings on Staten Island and in landlord, RFR Realty, was represented in Philadelphia/ Nightingale Group (Manhattan) California State Beauty, Kjaer Weis, Pai, By Terry, Brooklyn. Bid documents are available by Jeffrey Roseman, also of Newmark Teachers Employees’ Amanda Lacey and de Mamiel. as free downloads at nyc.gov/cityrecord Grubb Knight Frank. The asking rent Retirement System or on paper for a nonrefundable fee of was not disclosed. Two residential $94.4 Orange Capital (Manhattan), SB M&A $25. To make inquiries, contact Brian portfolios in Amsterdam/ Silverfern Real Estate Partners ● BANKRUPTCIES C. Saunders at (212) 863-6590 or Wells Fargo renewed its lease for not disclosed 1407 Broadway. [email protected]. 6,700 square feet at The AwesomenessTV Inc./ $81.3 Hearst Corp. (Manhattan) SB M&A The following listings are selected from the financial services company will remain DreamWorks Animation most recent available filings by companies GOODS AND SERVICES in its corner space while the 1.1 million- SKG Inc. seeking bankruptcy protection in the ● Department of Education square-foot building is undergoing a Selected deals announced for the week ended Dec. 11 involving companies in metro New York. Southern and Eastern Districts of New Seeks competitive sealed bids by renovation that will include an Strategic buyer M&A represents a minority or majority acquisition of existing shares of a com- York. Information was obtained from U.S. 4 p.m. on Jan. 13 for the repair and upgraded lobby and retail façade and a pany without the participation of a financial buyer. source: capitaliq Bankruptcy Court records available on maintenance of fire suppression systems. canopied entryway.The tenant was Public Access to Court Electronic Records. Bid documents are available at represented by Annette Healy of

18 | Crain’s New York Business | January 5, 2015 IN THE BOROUGHS STATEN ISLAND FROM Shops join forces AROUND Continued from Page 3 ring operating from a local bagel THE CITY ting into a car and going to a big-box shop.It confirmed to the mom-and- store or mall is no big deal,” said Gail pop store owners that the group de- BRONX Castellano, a first vice president for served their support. retail banking at New York Commu- That same year, the organiza- Eatery’s revival nity Bank. She sits on the steering tion, representing 350 businesses in may zone out committee of what will likely become Annandale, Great Kills and Elt- the island’s third BID, the South ingville, became the South Shore When Lovie Pignata walks past the Shore Local Development Corp. Local Development Corp. Since long-shuttered storefront on Hol- (The other two are the Forest Avenue then, it has burnished its reputation land Avenue in the Morris Park sec-

and West Shore Industrial BIDs.) by providing everything from addi- ap images tion of the Bronx, she dreams of tional private security that has WHEEL OF FORTUNE? Island retailers hope the New York Wheel will draw plenty of shoppers. reinventing Ben’s Luncheonette, Capitalizing on change helped reduce drug-related crimes, which for decades served as a hub of The need to counter threats from to a shoppers’ guide and the usual the community. Residents gathered rivals accounts for only part of the mix of street fairs and grants for tions.Other than the Victory Boule- Dorp Lane association and owner of there for a bite to eat, an egg cream, current wave of popularity of mer- storefront renewals. vard organization, there is the year- Norman Heil Insurance Inc. As ev- a cup of joe and a conversation. chant groups.So too does a desire to All told,those efforts have helped old New Dorp Lane Merchants idence, she said, the block’s vacancy “That is what I want to re-create,” cash in on what many see as the spur almost Group, which extends about a quar- rate has dropped by about a third in said Ms.Pignata.As she envisions it, greatest bonanza to hit the island $10 million in BID BIZ ter mile from Richmond Road to the past six months. her coffee shop, Morris Perk, would since the first ferry docked there in private invest- Number of Hylan Boulevard in New Dorp and Still, activists complain that not only offer specialty coffees, but the 18th century: the expected an- ment, accord- businesses encompasses 160 storefronts. many fast-food joints and other also meet a gamut of residents’ nual influx of up to 6 million shop- ing to City represented Much like the South Shore group, chain operations haven’t joined the needs—from hosting “Mommy and pers visiting the Empire Outlets, a Councilman which serves as a quasi-blueprint for fold because their local store man- Me” classes to staging live music. 340,000-square-foot retail develop- and Minority their development, the New Dorp agers don’t have the authority to But the storefront has not been ment slated to open in 2016,and the Leader Vin- 350 make that decision. zoned for commercial use since the SOUTH SHORE and Victory Boulevard associations New York Wheel, a 60-story Ferris cent Ignizio, Local Development have received financial backing from For its part, the South Shore former owners—the parents of for- wheel debuting a year later. who represents Corp. different sources,including Council- LDC’s move to become a BID has mer state Attorney General Robert “Staten Island is coming under the area. Im- man Steven Matteo, the Richmond faced some resistance from store Abrams—closed the luncheonette great changes, and if we are going to provements County Savings Foundation and in- owners who balk at paying an assess- some 30 years ago. According to a capitalize on that,we have to organ- have included 160 dividual merchants.In addition,Vic- ment that could run $662.50 annu- spokesperson for the Department of ize,share information,cross-market the relocation NEW DORP LANE ally, based on a levy of $500 plus City Planning,longtime vacant prop- Merchants tory Boulevard has also scored fund- and let people know we’re here,”said and expansion Association ing from the Staten Island borough $6.50 per linear foot of frontage for erties revert to the area’s current zon- Chris Williams, owner of Williams of the Annan- president’s office. a typical 25-foot storefront. ing status—in this case, residential. Eye Works in the Westerly section dale Diner, the To the retail corridors they serve, John Scalia, whose Eltingville Changing back to a commercial and president of the three-month- renovation of 145 the organizations have brought pri- holdings include Scalia Home for zone would require Ms. Pignata to old Victory Boulevard Merchants the six-store VICTORY vate street-cleaning, holiday lights Funerals Inc. and Kitty’s Family shell out thousands of dollars in ap- BOULEVARD Association. The group represents Jefferson Plaza Merchants and traffic-generating community Florist,said he sent out personal let- plication filing fees alone. For help, 145 retail businesses in a mile-long strip mall, and Association events, such as tree-lighting cere- ters to as many as 20 “hardcore hold- she’s turning to the community. On stretch between Manor Road and the Amalga- monies. outs” to urge them to vote for the at least one occasion,she has opened Jewett Avenue, along Victory mated Transit BID.Although none of those he so- a “pop-up” café tent outside the Boulevard. Union’s purchase and renovation of a Vacancies dropping licited cast a “no” ballot, only five storefront to collect signatures in Mr. Williams is taking an active Great Kills building that now hous- The New Dorp Lane group has voted for it. The rest abstained. support of the zoning change. She role in that effort, helping build a es two storefront businesses. formed close ties with elected offi- Still, other merchants have been has also turned to local City Coun- website that will feature a calendar “The South Shore LDC has tak- cials and community leaders, in- unabashedly supportive. Joseph cilman James Vacca for help. of events and a roster of local busi- en on a life of its own,” said Mr. Ig- cluding the local police precinct Marino, a member of New Dorp’s “A coffee shop here could again nesses, as well as links to their web- nizio, who helped spearhead its captain, who sits on its board. Up steering committee and the third- resemble that special place where sites and special promotions. forebear’s formation with support and down the lane today,many mer- generation owner of B&A Jewelers, neighbors gather and get to know By most accounts, the BID that totals nearly $50,000 a year. chants display the group’s poster in footed the bill for the community each other just as it was in the days groundswell dates to 2011 in Great Now, as the South Shore LDC their windows,giving the retail strip Christmas tree, and Anthony of Ben and Dotty Abrams,”said Mr. Kills, when a private security team nears its expected upgrade to BID a united image,reinforced by its new Campitiello, owner of Alfonso’s Vacca. “It’s the small neighborhood funded by the then-South Shore status in the spring,merchants along website featuring local businesses. Bakery, supplies pastries and coffee shops like this that show us how a Merchant Program did more than two other Staten Island retail drags “It’s created a buzz,” said Maria at Victory Boulevard’s Tuesday- big city can truly be personable.” lead police to a prescription-drug have formed active business associa- Esposito, president of the New morning planning meetings. —kerry murtha

nine luxury apartments has been “You’re seeing developers begin- Headwinds for priciest condos well received, and that a broader ning to charge $2,700 per square foot marketing push is in the works. and above,based on the fact that they A spokesman for Bruce Eichner, installed fancy kitchens in a project,” Continued from Page 3 oper had to set the price of the con- has been on the market for months, the builder of 45 E. 22nd St., a 65- Mr.Meir said.“They have to face the ket,and buyers in some cases feel it’s dos high to recoup the money. the first thing you’re thinking is story pencil-thin spire, declined to fact that there are fundamental fac- in their best interest to wait and see.” The picture at a small super- ‘What’s wrong with this unit?’ ” comment on the apparent lack of tors that dictate those kinds of prices, That appears to be what has hap- luxury project at 12 E. 13th St. is That is the risk now facing two sales there. Only a handful of the like views and location, that a lot of pened at,among others,210 W.77th much the same. Developers DHA other new condos, 17 E. 12th St. and planned 83 units have been released them just don’t have.” St. Sales for that 18-story, 25-unit Capital and Continental Properties 45 E. 22nd St. Both appear to have in recent weeks, and none appear to Many developers who have such project kicked off in September, but pulled the eight-unit building off the have sold. properties remain optimistic.Among went nowhere.Two months later,de- market roughly a year after launch- The performance of those proj- them is Mr.Meir’s firm,which in No- veloper the Naftali Group pulled the ing sales in November 2013, after it Caution has ects appears to mark a sharp break vember signed a deal to acquire a huge units off the market and is now in the had failed to produce any buyers. from market conditions as recent as parcel next to the High Line for a process of bringing in a new sales Prices there range from $7.5 million become the last year.Back then,apartments sell- record $800 million.The site can ac- team. For the time being, the mes- to more than $30 million. It’s not ing for as much as $47 million were commodate more than 700,000 sage on the building’s website reads, clear when sales will be rebooted. order of the day nearly sold out at the 60-story tower square feet of development. “We’ll be back in early 2015.” Representatives for 210 W. 77th downtown at 56 Leonard St., where Meanwhile, Kevin Maloney, a The setback comes a year after St. and 12 E. 13th St. declined to construction is still underway. co-developer of the 60-foot-wide, the developer felt confident enough comment for this story. “Today’s buyer is extremely so- 1,400-foot-tall tower at 111 W. to pay a near-record $725 for each One thing is clear, however. In a phisticated, and they know exactly 57th St., offering views of Central square foot of property that it could market where few developers are gotten off to a slow sales start. Ac- what they’re looking for and what Park, believes his project can double build on the site, for a total of $55 hitting the home runs that once cording to market sources and real es- it’s worth,” Mr. Sukenik said. “And the $3,000 per square foot he needs million. Construction was sched- seemed common. tate database StreetEasy, there have if you’re not giving them what they just to break even. At least one big uled to begin in 2015, and having “You don’t want your inventory been no confirmed sales at either one. want, they’re not buying.” financier agrees with him: Mr. paid so much for the land,the devel- out for too long,” said Nir Meir, an Darren Sukenik, a Douglas Elli- To many market experts, prices Maloney said they’re finalizing a executive at development company man broker who is leading the sales that have pushed past $2,500 per deal to secure a half-billion-dollar LISTEN to a discussion at HFZ Capital.“If you’re a buyer and effort for 17 E. 12th St., insists the square foot toward $3,000 loom as a construction loan from a major fi- CrainsNewYork.com/podcasts you look at a listing and see that it conversion of a parking garage into big part of the sales challenge. nancial institution.

January 5, 2015 | Crain’s New York Business | 19 Big NY cultural institutions make changes at the top

director and chief executive, Longtime chiefs Thomas P.Campbell. move out, opening Next year will bring changes at the top levels of other esteemed cul- door for new group tural institutions, too. In June, of executives Karen Brooks Hopkins will retire as president of the Brooklyn Academy of Music after spending the last BY THERESA AGOVINO decade of her 25-year tenure at the institution in that role.June will also When the Metropolitan Museum mark the end of Brooklyn Museum of Art takes over the space occupied Director Arnold Lehman’s reign, by the Whitney Museum of Amer- which began in 1997. ican Art in 2016, at least one execu- “It’s not surprising. The baby tive who’s been working on the ex- boomers are coming to a place pansion won’t be there to celebrate where they want to retire,” said in an official capacity.In March, the Becky Klein, a partner at Phillips ap images; buck ennis Met’s president, Emily Rafferty, Oppenheim, an executive search MOVING ON: The Metropolitan Museum’s Emily Rafferty (left), BAM’s Karen Brooks Hopkins and the Brooklyn Museum’s Arnold Lehman will retire after working at the insti- firm. tution for 39 years, the last 10 in her Ms. Klein said their replace- current position. ments will need the same budgeting, go out while he’s still on top. “I old. “I’d like some personal time, a generational shift,” she said. Ms. Rafferty said the Met is fundraising and managerial talents would put my energy level up some creative time.” Ms.Klein said that an executive’s thinking about launching a new the trio possesses. However, the job against any 28-year-old’s now, but I tenure at a cultural institution now capital campaign, and she didn’t description will also likely call for don’t know if that will be the case in ‘Generational shift’ averages between five and seven want to start such a major project much more social-media and tech- five or 10 years,” Mr. Lehman said. Ms. Brooks Hopkins views her years. However, she wouldn’t expect when she knew she wouldn’t likely nological expertise. Ms. Brooks Hopkins says she departure along with those of her to see the individuals who replace be there to finish it. “It’s not fair to “We can learn the technology, plans to continue working, though colleagues as a sort of changing of this trio hopscotching out in a hur- the institution. A big project like but it’s another thing to live it,” said she isn’t sure what she wants to do the guard.She can’t imagine that the ry. “These aren’t stepping-stone in- that needs a continuum,” said Ms. Mr. Lehman. “The younger gener- beyond having a less frenetic, more organizations will soon see such stitutions,” said Ms. Klein. “These Rafferty, the Met’s second-highest- ation is steeped in it.” flexible life.“I’ve been working tire- long tenures again, now that job- institutions worry less about short ranking executive,who reports to its The 70-year-old said he wants to lessly for 35 years,”said the 63-year- hopping has become the norm. “It’s tenures.” Ⅲ

plastic-bag use, but may agree to The new year’s political noisemakers some exemptions sought by business groups. If Mr. de Blasio’s approval rating Continued from Page 6 apply and $200,000 if selected for a claims the city is undermining the a freeze were imposed. That puts remains low, investing political capi- Act, abortion rights, publicly two-year license.The state’s Depart- value of his air rights. A lawsuit is Mr. de Blasio in a tight spot. The tal in a carriage ban would be foolish. financed elections and other things ment of Health is expected to choose possible. board will post its schedule in But the mayor owes a major debt to anathema to his GOP partners. the winners.  Rent increases. Mr.de Blasio os- February. the animal-rights lobby. A compro- Senate Republicans will defend the  Midtown east rezoning. Back in tensibly pushed for a rent freeze last  City Council regulation. Will the mise mostly taking horses off of the interests of the city’s real estate the city,Mr.de Blasio is likely to kick year, and the city’s Rent Guidelines council ban horse-drawn carriages, streets—and allowing Mr. de Blasio industry as Assembly Democrats off the process of rezoning a 70-block Board approved a historically low stop credit checks of job applicants to blame the half-measure on a split look to enhance rent regulation and swath of eastern midtown Manhat- 1% increase for rent-stabilized ten- and eliminate free disposable shop- City Council—is one possible out- curtail tax breaks for new tan in spring 2015. For developers ants. Insiders said that board mem- ping bags? Those are just some of the come. development. and building owners, billions of dol- bers—a majority of whom are may- measures that city lawmakers will Apparently unimpressed by the  Weed. Competition is expected lars are at stake. The administration oral appointees—followed secret consider. council’s proposed 10-cent fee for to be fierce for up to five licenses to has already blessed an office-tower orders from Deputy Mayor Alicia The de Blasio administration disposable bags,the de Blasio admin- distribute newly legal medical mari- project at 1 Vanderbilt Ave., next to Glen, which she denies. Tenant ac- supports the carriage ban and the istration is studying alternatives to juana.Organizations hoping to grow Grand Central Terminal. But the tivists would object to another hike, concepts of forbidding credit- cut consumption without burdening the product must pay a $10,000 fee to terminal’s owner, Andrew Penson, while landlords would go ballistic if history searches and reducing consumers. Ⅲ

products and initiatives. digital and events grew a record 28%, Media mavens find new revenue The debt-ratings service does see a spokeswoman said.She declined to light at the end of the tunnel.But it’s provide dollar figures or give a break- a long tunnel. down of the categories, but said dig- Continued from Page 3 the next few years,” said Shenan ad revenue dropping by 9.4%. “We do get to an inflection ital ad revenue was up 54% and rep- three or four years ago has been Reed, president of digital, North That’s one reason Moody’s gave point about 10 years from now, resented “a significant majority” of growth in reader revenue from dig- America, at media-buying agency newspapers and magazines a nega- when the nonprint business will be overall ad revenue. ital subscriptions and more atten- MEC.“Our clients care just as much tive outlook—as opposed to stable more than half the revenue and you Like Gawker, BuzzFeed, Vox tion to conferences and events. Per- about the company they keep as they will see consistent top-line growth” Media and Slate, Atlantic Media haps the biggest difference has been do finding the right audience.” at the media companies, said had rapid audience growth this past the increase in native advertising— Ad spending is Moody’s Senior Credit Officer year. Its number of unique visitors a category that the Times, among Facebook and Google threats Carl Salas. “We couldn’t say that a across all its sites on both mobile and others,had resisted because of a per- Native ads are also a part of the expected to few years ago because the decline in desktop was up 57% in October, to ceived risk to editorial integrity. market where Facebook and Google print advertising was so [steep] we 22.7 million, compared with Octo- Pretty much no one is raising can’t compete, Mr. Doctor said. grow for digital didn’t know there would be an in- ber 2013, according to comScore. that objection anymore as media That’s important because well over flection point.” That pales besides BuzzFeed’s companies search for ways to avoid half of all online display-ad dollars media, but not Among companies with their 74.6 million, New York Times Dig- being treated as commodities, and will go to the top six digital players— roots in print,Atlantic Media stands ital’s 64.4 million, Gawker’s 53.8 custom marketing programs offer a starting with Google and Facebook, for print pubs out as one that has long since million and Vox Media’s 50.7 mil- chance at significantly bigger pay- which together will claim more than reached that point. The company, lion. But it’s enough. days. Creating marketing content 40% of a $24 billion pie in 2015, ac- headquartered in Washington, with “We produce high-quality con- cast as stories or videos that almost cording to data from eMarketer. its sales and marketing division and tent and have a high-quality audi- blend in with the rest of the site is a The good news for digital media about half its writers based in New ence, and the subject of the content labor-intensive project that doesn’t is that total online ad spending is ex- outlooks for the cable and broadcast York,became modestly profitable in is oftentimes relevant to a subject work for every property, but it pected to grow 15.7% in 2015, ac- industries—in its 2015 report on 2010 after a decade of losses.At that the advertiser cares about,”said Bob comes with six-figure upfront pay- cording to Magna Global. Unfortu- U.S. media. And why newly inde- time, digital ad revenue made up Cohn,chief operating officer of The ments and larger advertising pack- nately for magazines and pendent Time Inc.and News Corp., 40% of the ad total—about double Atlantic, listing technology, health ages sold at higher rates than typi- newspapers, they’ll be feeding that parent of The Wall Street Journal, the percentage for most media com- and business. “That matters as cal banner ads. growth: Newspaper ad sales are along with the Times,are rapidly de- panies today. much or more than the size of the “It’s a place we’ll see growth over forecast to fall 6.2%, with magazine veloping and launching new digital In 2014, ad revenue from print, audience.” Ⅲ

20 | Crain’s New York Business | January 5, 2015 HELLUVA TOWN INSIDE Source Lunch Tech Modern antiques development’s area code

The phoenix is dead. As the Winter PAGE 22 Antiques Show tries to reach a wider and younger audience, it has Out and About pushed from the nest the golden mythical bird that had been a Under the Radar at the longtime featured symbol.The 61- Public PAGE 23 year-old event’s new logo features a clean sans-serif font with a stylized snowflake that is highlighted in an ad campaign with the tagline: “The WAS (Winter Antiques Show) is NOW.”There is even an image of a 20th-century sculpture in the campaign to emphasize that modern pieces can blend with antiques. The event is “a destination for timeless design,” said Executive Director Catherine Sweeney winter antiques show

Singer, “and we felt that our logo should be, too.” In another effort to better connect with millennials, the bound Lookbook given to guests at the show’s Young Collectors’ Night—a fundraiser for the under- 40 set on Jan. 29—has been replaced by an online version. In it, established decorators highlight pieces from the show and explain how to use them in current settings. About 75 pairings of designers and DOING GOOD: Troy Dixon pieces will be featured. joined the Apollo Theater The show runs from Jan. 23 to board because he wanted to Feb. 1 at the Park Avenue work with an organization Armory. Proceeds from parties dedicated to inner-city youth. and tickets benefit the East Side House Settlement in the Bronx. —theresa agovino On the bauble

High-end jewelry shopping just got a little cheaper. TrueFacet, an online marketplace, authenticates, apprai- ses and refurbishes used baubles and watches. Owners get a free price estimate, ship their jewels to the site, and pay 15% to 20% com- mission on each sale, which takes a few weeks on average. Soon they will also be able to sell directly to a network of 500 jewelry businesses. CEO Tirath Kamdar, 37, and COO Chris Chan, 34, co-founded New blood for boards the midtown-based company this past May, investing more than $85,000 of their personal savings. Nonprofits look for younger people to bring talent, Before launch, they received $118,000 of seed funding from passion—and ability to raise money accelerator Techstars, for 6% equity. Mr. Kamdar, who had worked

in the jewelry industry, noted that gibbons catheriine prices varied widely for the same pieces. “I wanted to create a BY THERESA AGOVINO transparent buying and selling experience,” he said. The site, which offers a best- ver the years, Celine Dufetel had attended a few events to benefit Citi FUNDING TARGET value guarantee, features more Harvest, a charity devoted to helping alleviate hunger. It was an issue that For Generation Harvest than 4,000 items ranging from a was important to her because her grandparents and great-grandparents philanthropists, who raise $180 Tiffany sterling silver money for Citi Harvest necklace to a $127,495 Patek didn’t always have enough to eat. So when she started thinking about Philippe watch (pictured). getting involved in a nonprofit, she called Citi Harvest’s management, and TrueFacet has served some 2,200 customers, authenticated six months ago, she joined the board. ¶ “I really wanted to give back, and close to 10,000 items and caught 85 this was a cause and an organization I believe in,” said the 33-year-old, who fakes so far. Currently, it focuses on $1,500 is a managing director at Neuberger Berman. ¶ Nonprofits are always on shipping within the U.S. but plans FINANCIAL OBLIGATION to market to the lookout for potential board members, but Ms. Dufetel filled a special need for Citi Harvest: before summer 2013 Canada early this dedicated people under the age of 40. Citi Harvest Executive Director Jilly Stephens has been on a year, with Oquest for young blood since she realized the cohort was missing from her board about three years Germany and Australia to ago after doing a strategic plan. ¶ “I looked at the demographic of our board, and there was no one follow. under 40,” said Ms. Stephens. “It really stood out.” ¶ Indeed, finding young people with the time, —jessica $5,000 kramer talent, passion for the cause and the financial means to join the See NEW BLOOD on Page 22 FINANCIAL OBLIGATION now

January 5, 2015 | Crain’s New York Business | 21 SOURCE New blood LUNCH: Interview by Thornton McEnery JAKE SCHWARTZ Continued from Page 21 people in their 20s and 30s.They will board has become a critical issue for be expected to give or raise between the majority of the city’s nonprofits. $500 and $5,000 a year. Current The Society of Memorial Sloan members must give more than $5,000. Kettering Cancer Center is launching Ms. Glass plans to start a social- He’s got the code for unlocking a group with lower donation expecta- media campaign to raise awareness of tions to attract younger people. Pencil the new group and handed out fliers Inc. recently started two advisory at a shopping fundraiser last month. committees for which members are “I need to start somewhere,”she said. NYC’s tech-job development expected to offer their expertise, but Pencil, which fosters relationships no financial obligation is required. between businesses and public And Mouse has designated a board schools, is hoping to draw younger ake Schwartz, 36, came east things that live adjacent to another. challenge to all agencies to be way seat for a graduate of one of its after- donors through new groups set up last from Oregon to attend Yale Consumers of education are way more inclusive in their thinking on school tech programs. The organiza- summer.The first is the Young Profes- and Wharton. He stayed to more interested in things that have things like this, which is why GA tion is 17 years old,so some of its grad- sional Council, which targets people become a key figure in the a clear return on investment. I’m a and Per Scholas can both play a uates should have established careers. in their 20s, who are expected to do- growth of Silicon Alley. liberal-arts graduate, and proud to role. And I think that’s a great nate only $5,000 a year. Another, the JSince founding his tech ed- be, but my education didn’t offer thing. Hard to find Executive Leadership Council, is de- ucation academy, General the skills I need. “Everyone wants Mark Zucker- signed to attract people in their 30s Assembly, in early 2011, Mr. I think of GA like a grad school. Is there a downside to this increasingly berg or Oprah Winfrey to be on their and requires members to give or get Schwartz’s profile has soared College-educated people need a intense focus on tech jobs in the city board,” said Daniel Rabuzzi, execu- $25,000. Pencil’s board members are alongside that of his school. Gen- little on-ramp into a tech career economy? tive director of Mouse, which has a also required to come up with $25,000 eral Assembly now has locations that excites them, and that’s what One of the lessons of the last budget of $1.6 million.“But you have annually, but that amount is expected and classes across the globe, and its we do. In return we can build an decade is that it’s never good to to reach out to people in their 20s and to rise. founder is a sounding board for en- alumni community that will power put all your eggs in one basket.For 30s and hope they grow with you.” “We want to work with a variety trepreneurs and politicians. the tech sector. way too long, New York just let fi- Finding individuals under 40 to of people to benefit our family,” said As the de Blasio administration nancial services dominate,to join boards has never been easy.Typ- David Weiner, president of Pencil, looks to foster the development of Do you think the WHERE the point where Wall Street ically,it is the time to build careers and which has a budget of $4 million. New York’s most promising eco- mayor’s administration THEY hit a bump and we were raise families. Power brokers such as Pencil is fortunate that it has nomic sector, it is turning to people understands that? screwed. As much as 60% of Henry Kravis and Shelly Lazarus, found some young tech executives like Mr. Schwartz, who are steeped Have they picked your DINED tax revenue was coming di- who sit on numerous boards, are well who are willing to donate their time in the world of tech education.The brain in any way? SAGAPONACK rectly or indirectly from fi- past that stage in their lives. and money. About six months ago, city needs them to help remove the We talk to the ad- 4 W. 22nd St. nancial services. … That’s (212) 229-2226 But some say the task is more dif- tech-education firm 2U’s co- Alley’s biggest obstacle to growth: ministration all the sagaponacknyc.com pretty intense. ficult now as careers have become founder Jeremiah Johnson joined its lack of tech talent. time about tech edu- more demanding, more women are cation.To their cred- AMBIENCE: Are you seeing the same dangers Pencil’s board. Mr. Johnson said he East End working and volunteer options pro- was intrigued by its mission. What role do the “code academies” it,the needs of work- seashore comes in tech? liferate. And amid the digital boom, play in the more equitable development force development to the Flatiron The thing about tech is that it In demand of the tech sector that the de Blasio there is a desperate need for mem- are a lot broader than WHAT THEY ATE: has octopus arms. Using tech bers with technological knowledge “Education is an issue that is near administration is seeking? they are for creating Ⅲ Cobb salad, skills in industries like fash- in addition to the traditional skills and dear to my heart,” said the 30- Well, I’m not sure if that approach higher-level tech coffee ion, health care and, yes, fi- such as finance, law and marketing. year-old. Mr. Johnson said he wasn’t actually works for overall econom- jobs. I’m very proud Ⅲ Baja fish tacos, nancial services is now com- Tech is also attractive because it is actively looking to be on a board ic development, but that’s a differ- to take educated coffee monly accepted as an a relatively new sector in New York, when he heard about Pencil,but then ent conversation. I think for tech, people and help PRICE: enabling force. Those indus- so its executives might not have de- welcomed the idea. “I wanted to do however, education plays an enor- them move into an $38.11, including tries are all here in New York, veloped loyalties to organizations, something I enjoy and something mous role, but not in the way you exciting new path. tip too,so we should see tech jobs though many are wealthy beyond where I added value,” he said. might think. For people without through a wider prism, and their years. Mr. Johnson said he has been ap- college educations, it can be a dif- that will help us to not become Identifying interested people is proached by a few other nonprofits How so? ferent story. overreliant on startup culture. only the beginning of the relationship. but doesn’t have much spare time be- This is bigger than just a few little The bond must be nurtured and forti- cause he just started another compa- boot camps. We started General What about them? What’s their path What’s a bigger threat to the tech fied. For about 13 years, Citi Harvest, ny. “You have to be realistic about Assembly as a community space for into tech? community, lack of broadband which has a budget of $27.3 million, what you can do,” he said. entrepreneurs, but we found that There’s something called Per availability or lack of talent? has cultivated younger fundraisers in a Nonprofits with some stars on there was a real need for tech talent Scholas up in the Bronx. It’s amaz- Connectivity is always a problem, group known as Generation Harvest. their boards may find it easier to at- among startups. Conversely, there ing. It takes people from inner-city but I don’t know too many busi- However, the group, mostly in its tract young people.Troy Dixon joined was a craving among people who neighborhoods with limited edu- nesses that use massive streams of 20s and 30s, had become too big, not the Apollo Theater board three years want basic skills in tech. cational opportunities and turns data. It’s a pain in the ass to get set committed enough, and had never ago because he wanted to work with them into help-desk operators. up in New York, but realistically produced a board member. In the an organization dedicated to inner- And that’s where General Assembly will Some of those help-desk operators you can do it. On the other side, summer of 2013, Citi Harvest city youth, and his parents grew up in play a role in creating more talent? go on to really good jobs, like soft- talent is the No. 1 problem, and slashed Generation Harvest to 18 Harlem. However, it didn’t hurt that The trend we’re really trying to lead ware testing.It’s an amazing and vi- I’m not just saying that for my members from 45, while the amount the board is chaired by Richard Par- on is the idea of education to em- tal thing. own good. It’s a very real com- they are expected to give or raise sons, the former chairman of Citi- ployment. These are not abstract The mayor has given a huge modity. Ⅲ jumped to $5,000 a year from $1,500. group who also led Time Warner. “We are trying to get a group of “I get to see Dick and how he op- people who are dedicated to our mis- erates,” said the 43-year-old, who is PLAY/LIST People, places and things that make Jake Schwartz tick sion,” said Ms. Stephens. “Now they chief executive of Hollis Park Part- are all really involved.” ners,an investment firm he founded. LATEST DOWNLOAD: FAVORITE FALL IDEAL JOB: “Probably Wharton who I Broadening the base is important “I’ve learned a lot.” Soulver. “It’s a ACTIVITY: “Making starting something worked for doing to avoid burnout among existing The Apollo has been bringing on business-idea app. fun of people who similar to GA” small-business members. For 30 years, Martha other younger board members,such as Super-cool and well drink pumpkin-spice consulting. She Glass has been involved in the Soci- music star Pharrell Williams, who designed. It even has lattes” MOST IMPORTANT basically taught me ety of Memorial Sloan Kettering, a joined a few months ago. And even calculator and PROFESSIONAL everything I know in fundraising organization composed though Mr. Dixon doesn’t have his spreadsheet IDEAL GETAWAY: INFLUENCE: “I had a terms of leading of women. In the early days, Ms. colleagues’ fame, he receives three to functionality.” “Colorado. I can’t get mentor named change and using Glass said, there were fewer working four overtures a month from other enough skiing or Leslie Mitts at data to drive boards. He is already on the board of women,and those interested in char- hiking.” ity didn’t have so many options. Boys Hope Girls Hope in Brooklyn, organizational “Now I look around and realize I’m and with three young children to raise, improvement.” always depending on the same group Mr.Dixon doesn’t see how he could fit dark, but it’s very, FIRST JOB: of people,”said Ms.Glass,who is cur- another board into his schedule. “I very good. I highly “Making ‘SILICON ALLEY’ OR rently the society’s president. “People want to go deep, not wide,” he said. Ⅲ recommend it. ... I balloon ‘TECHNOPOLIS’?: just don’t have the time.” Last month, JUST READ: “Wolf in should probably add bouquets at “ ‘Silicon Alley’ is it established the Society Circle, LISTEN to a discussion at White Van, by John that I read it on a the local Party definitely better than CrainsNewYork.com/podcasts which Ms. Glass hopes will attract Darnielle. It’s pretty Kindle.” Depot” istockphoto ‘Technopolis’!”

22 | Crain’s New York Business | January 5, 2015 OUT AND SNAPS Wall St. raises over $26 million for UJA-Federation ABOUT by Jessica Kramer

CULTURE FIX CAREER BUILDER WEDNESDAY, JANUARY 7 WEDNESDAY, JANUARY 7 Cinema Eye Honors holds its EIGHTH The New York State Society of ANNUAL AWARDS CEREMONY celebrating Certified Public Accountants hosts the nonfiction filmmaking. Thirty-six feature 2015 TAXATION OF FINANCIAL films and six shorts are up for honors. The INSTRUMENTS AND TRANSACTIONS festivities kick off at 6:45 p.m. at the CONFERENCE. Speakers include Steve Museum of the Moving Image, 36-01 Rosenthal, a senior fellow at the Urban 35th Ave. in Astoria, Queens. Tickets are Institute. Topics include the impact of $75. The cost includes a pre-reception the latest Foreign Account Tax hosted by HBO Documentary Films and Compliance Act developments, tax an after-party. For more information, visit inversions and fee-deferral planning. cinemaeyehonors.com. The session takes place from 8:30 a.m. to 4:45 p.m. at the New York City Bar patrickmcmullan.com THURSDAY, JANUARY 8, photography matthew adam Association, 42 W. 44th St. Tickets are KATHRYN and JAMES MURDOCH at the Inner-City LARRY LEEDS, BONNIE PFEIFER EVANS, LARRY GAGOSIAN and CHRISSIE ERPF THROUGH SUNDAY, JANUARY 11 $510 for nonmembers and $385 for Scholarship Fund’s 38th Annual Award Dinner. The Dec. 9 at the Prostate Cancer Foundation’s Dinner at Daniel. The Dec. 8 benefit took in The NYC WINTER JAZZFEST returns for its members, and can be purchased at event raised $2.4 million. more than $2.2 million. 11th year, offering performances from nysscpa.org. more than 100 groups at TUESDAY, JANUARY 13 10 venues in Crain’s presents a BUSINESS BREAKFAST and around FORUM WITH MANHATTAN DISTRICT Greenwich ATTORNEY CYRUS R. VANCE JR. Topics Village. include new strategies and tools to Musicians combat cybercrime, and how public- include private partnerships can fight financial Robert crime and human trafficking. The event steven schreiber Glasper, takes place from 8 a.m. to 9:30 a.m. at David Murray and Jen Shyu (pictured). the Yale Club of New York City, 50 Performance times, locations and prices Vanderbilt Ave. Tickets cost $125 and vary. For more information, visit can be purchased at winterjazzfest.com. crainsnewyork.com/events-calendar. DON’T MISS THE ARTISTS ARE PRESENT

WEDNESDAY, JANUARY 7, ben asen uja-federation of new of york uja-federation THROUGH SUNDAY, JANUARY 18 FRED WATTS, JULIE MYERS WOOD, RIKKI KLIEMAN and LINDA L. JOHN A. PAULSON, PAUL J. TAUBMAN and JERRY I. SPEYER at Innovative contemporary theatrical companies and ADDISON at the Police Athletic League’s 26th Annual Women of the Year UJA-Federation of New York’s Wall Street Dinner. The Dec. 8 artists from around the world showcase their work Luncheon. The Dec. 10 event generated $450,000. benefit raised more than $26 million. at the Public Theater’s UNDER THE RADAR FESTIVAL. The event returns to the Public for its 11th year with work from Taylor Mac (pictured), who covers See more of this week’s Snaps online at CrainsNewYork.com/galleries. decades of music from the early 20th century, and Reggie Watts, channeling Marina Abramovic by inviting audience members to sit across from him for five minutes. Show times and locations vary. Most shows are $25, though some performances cost more, and some are free. For more information,

visit undertheradarfestival.com. ves pitts

OPENING FUNDRAISERS TUESDAY, JANUARY 13, WEDNESDAY, JANUARY 14 THROUGH SUNDAY, JULY 12 “Luka” and “Tom’s Diner” singer After smallpox, Guinea worm disease Suzanne Vega and Dramarama lead may soon be the second human illness vocalist John Easdale are part of the ever eradicated, thanks to various global lineup at LIGHT OF DAY WINTERFEST NYC. efforts. These scientific and social The concert raises funds for the innovations are explored, along with nonprofit Light of Day Foundation, efforts to eliminate other diseases, in the which supports research and treatments new exhibit COUNTDOWN TO ZERO, for Parkinson’s disease and related developed by the American Museum of illnesses. The event takes place at 7 p.m. Natural History with the Carter Center. at the Cutting Room, 44 E. 32nd St. The museum is open daily from 10 a.m. Tickets are $45 to $75 and can be to 5:45 p.m. at West 79th Street and purchased at thecuttingroomnyc.com. Central Park West.Tickets for adults are a suggested donation of $22. For SATURDAY, JANUARY 17 more information, visit amnh.org. Know when to fold ’em at the no-limit Texas-hold-’em SNOWMAN SET 2015 CHARITY POKER TOURNAMENT. All net proceeds go to CureSearch for Children’s Cancer, a research nonprofit. The event is scheduled to take place from 6:30 p.m. to 11 p.m. at Overlook, 225 E. 44th St. Tickets are $120 for players and $90 for nonplaying guests (each ticket includes two drinks and hors d’oeuvres). For more information, visit the carter center/l. gubb snowmansetpoker.com. MARK YOUR CALENDAR…

TUESDAY, MAY 26 SEE THEM, FEEL THEM. A few generations later, legendary rock band The Who (with Roger Daltrey, pictured) celebrate their 50th anniversary with THE WHO HITS 50!, a tour chronicling their impressive contributions to the genre. The band plays at 7:30 p.m. at Barclays Center, 620 Atlantic Ave. Tickets are $49.50 to

$154.50 and can be purchased at barclayscenter.com. rosenbaum jon

January 5, 2015 | Crain’s New York Business | 23 IT’S YOUR CITY

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