ASKED & ANSWERED Dandapani on how the city can help save hotels PAGE 11 OFF SEASON Businesses near Yankee Stadium are struggling without fans PAGE 3
CRAINSNEWYORK.COM | JUNE 29, 2020
SPECIAL ISSUE NEXTNEW YORK As the city reopens, businesses large and small are plotting their comeback, making accommodations for workers and customers alike PAGE 13 GETTY IMAGES
VOL. 36, NO. 24 © 2020 CRAIN COMMUNICATIONS INC. HALF-BAKED FAREWELL PPP PRIMER DON’T BANK e c i t y ’ s Fairway’s Here’s how to get ON IT $3 million Harlem store, your loan forgiven Banks may plan to help and possibly PAGE 6 shutter some restaurants others, is branches, giving
INSIDE is getting bad closing landlords another
NEWSPAPER reviews PAGE 5 headache PAGE 4 PAGE 10
P001_CN_20200629.indd 1 6/26/20 4:22 PM CN019756.indd 1 6/23/20 11:08 AM CORONAVIRUS ALERT
OFF BASE: Many small businesses near sports venues such as Yankee Stadium are hurting. BUCK ENNIS Bars and shops near Yankee Stadium facing ‘extinction’ without baseball MLB, as well as Belmont and the U.S. Open, returning without spectators offers little local help
BY RYAN DEFFENBAUGH restaurants near the stadium in business. ing. Gibson said on Twitter that her o ce was before and two weeks of the tournament,” he e 161 Street Business Improvement Dis- working to get o cials there soon. said. ankee Tavern has been around trict, which represents many of the merchan- City Councilman Mark Gjonaj of the Bronx, long enough that Babe Ruth occa- dise shops and bars near the stadium, re- who leads the small-business committee, is Hard ball sionally capped o a victory by ports there are at least 20 locally owned pushing for a $500 million fund to help busi- Back in the Bronx, the BID has pushed for buying a round for the bar. But af- businesses in the vicinity that are months nesses struggling during the pandemic. the Yankees to rescue the businesses fre- ter 93 years, the business is at risk behind on their rent. e SBS spokeswoman said the depart- quented by so many of the team’s fans. e of closing its corner location in the Bronx, “ ey are on the brink of extinction if they ment has distributed more than $73 million to team, valued at $5 billion by Forbes last stepsY from the stadium’s right- eld gate. don’t get help quickly,” said Cary Goodman, 4,000 rms since the start of the pandemic. month, could o er loans or help cover part of Joseph Bastone, whose family has owned executive director of the BID. “Most of these Bastone said he is pushing for the city to those businesses’ rent until games return. the tavern for half a century, said he is losing businesses make all their money in a short help businesses such as his by providing rent “ ese small businesses create the ambi- $5,000 a week without the Yankees home window in the assistance and for- ence and environment of coming to a ball- games that pack the bar. summer when giving the com- game,” Goodman said. “But they are on the “I’ll have 300 people in here before games there is baseball or “THESE SMALL BUSINESSES mercial rent tax verge of collapse, and the Yankees can help.” start,” Bastone said, “then another 150 to 200 soccer.” that is typically He said he had not received a response after. at’s all lost.” CREATE THE AMBIENCE OF passed along to from the team's management. As sports slowly return throughout the Little aid the tenant. e Yankees worked together with the busi- city—kicked o by the Belmont Stakes June e 161st Street COMING TO A BALLGAME” e U.S. Open is nesses at the end of 2019, when it appeared a 20—the events are unlikely to help the local businesses have still on for the end new merchandise deal with Nike would limit economy much until fans can safely return. received little aid during the shutdown, out- of August, but with none of the more than the ability of Bronx stores to sell jerseys. e From the days of Ruth, businesses on 161st side of 10 merchants who have received fed- 700,000 spectators who attend each year. team helped get Nike to make an exception Street could rely on the Yankees to show up eral Paycheck Protection Program loans. Minus the fans, this year’s tournament will for the local retailers to keep selling o cial each spring and play through to the fall, driv- Most did not qualify for the city’s Covid-19 generate nowhere near the estimated $400 gear—a huge win. ing enough visitors and revenue for the sea- small-business grants, Goodman said. million in spending it did in 2014. at loss But that victory has prompted some stores sonal arrangement to work. Yankees Opening e city’s Small Business Services commis- will sting Queens even more than missing to purchase thousands of dollars’ worth of Day alone can generate more than $11 million sioner, Jonnel Doris, was expected to visit the Mets home games and the visitors from Bel- new merchandise—and now they are without in local spending, according to estimates from district June 25, along with local Council- mont, local o cials say. customers to sell it to. the city. woman Vanessa Gibson, to discuss ways to “Most of the hundreds of thousands who Goodman said the Bronx Bombers need to Covid-19 has already cost the Yankees more help. But the visit was rescheduled the night come for the U.S. Open, they come from all step up for the sake of the businesses in the than 30 home games. Major League Baseball before, Goodman said, “typical of how the city over the world,” said Rob MacKay, director of borough. “We’ve been completely aban- and the players have reached a deal to return has treated the neighborhood for way too marketing and tourism for the Queens Eco- doned,” he said. for spring training by July 1, but games will re- long.” An SBS spokeswoman said the depart- nomic Development Corp. e Yankees did not respond to a request turn without the fans that keep the shops and ment is still working out details of the meet- “Every hotel is fully occupied for the week for comment. ■
JUNE 29, 2020 | CRAIN’S NEW YORK BUSINESS | 3
P003_CN_20200629.indd 3 6/26/20 2:36 PM FROM THE NEWSROOM | FRED P. GABRIEL | PUBLISHER New Crain’s data offering makes market research easier
LET’S FACE IT: DATA IS KEY. We’ve also expanded our database by FOR DECADES ever before. Data helps us nd important connections—con- more than 145% to include hundreds of It’s also just the beginning. nections that lead to valuable insights and drive busi- additional executive and company con- CRAIN’S HAS Crain’s New York Business is commit- ness. With that in mind, Crain’s New York Business is tacts. ted to producing high-quality data and pleased to announce that we’re launching a new- And our data membership includes RANKED will continue to enhance our o ering to and-improved—in fact, an entirely reimagined— print and digital access to the award-win- COMPANIES IN data members. data o ering. ning journalism we produce. So if you’re looking to grow your busi- Found at CrainsNewYork.com/data-lists, the new For decades Crain’s has published lists A VARIETY OF ness by getting in front of the right peo- o ering allows data members to create and export ranking the largest companies across a INDUSTRIES ple and companies, I urge you to consid- their own custom lists from across the entire Crain’s variety of industries and categories. is er joining our enhanced data database. ey can lter those lists by executive title, enhanced o ering will makes lead gen- membership by visiting CrainsNewYork. industry, company size and more. eration and market research easier than com/data-lists today. ■
CORONAVIRUS ALERT Mayor’s restaurant rescue plan falls short of the mark Eateries in hard-hit neighborhoods say grant fund has too many aws
BY SUZANNAH CAVANAUGH Angueira, who owns three Bronx e mayor said business owners restaurants. For an owner with a would receive reimbursement he reopening of Mark skeleton sta , such as Lu, the pro- within two weeks of request, but Lu’s South Bronx restau- gram’s maximum award can sus- many of them are leery of spending rant made for two mile- tain four full-time employees for when a sudden spike in cases could stones. June 15 marked just over two months. is doesn’t send business tumbling again. the three-year anniver- factor in rent, overhead and taxes. “We don't even know if the sec- sary for his Italian tavern, Porto Sal- “Underfunding is just as danger- ond wave is coming," Lu said. “It's Tvo, and the rst day in three months ous as not giving them any money,” just so much uncertainty for us to he had a customer. Angueira said. be putting so much money out of When other restaurants jumped If restaurants reopen without a pocket.” PORTO SALVO, to o er takeout following the city’s su cient stimulus and consumer For some restaurateurs, their an Italian tavern shutdown, Porto Salvo struggled to spending remains low, they could need outweighs the risk. in the South call back the workers that were laid be forced to close again, perma- Brooklyn restaurant owner Mu- Bronx
o when the pandemic hit. Robust nently, he said. tale Kanyanta submitted one of the MARK LU unemployment bene ts and fear of “It’s honestly putting a Band-Aid 288 applications the mayor’s o ce on a bullet wound, had received as of June 19 for his wage for waitsta had been enact- circumstances,” said Andrew Rigie, and it’s just going to restaurant, Locals, in Fort Greene, a ed, the poverty rate for Black and who heads the restaurant group. “UNDERFUNDING IS JUST AS be insu cient,” neighborhood that was not listed as brown women was one-third lower e mayor defended the pro- Angueira said. a targeted high-needs zone. than those living in states with the gram's goal of helping underserved DANGEROUS AS NOT GIVING e program was Kanyanta would prefer relief with $2.13 federal tipped minimum neighborhoods and workers most built to extend an no strings attached, but he’s not in a wage, a study by the National Wom- a ected by the virus. THEM ANY MONEY” additional lifeline to position to be picky: He was denied en’s Law Center found. “Participating restaurants are resaurant owners, PPP money and economic injury Some owners are on board with committed to helping create more Covid-19 made staying home the many of whom are nearing the end disaster loans and, like Lu, didn’t the raise. Angueira saw the pay in- equitable places and making their better option for Lu’s four employ- of their loans under the Paycheck have the means to o er takeout or crease as an inevitable benchmark meals accessible to vulnerable ees. Unable to sta to-go services, Protection Program, but the stimu- delivery. and preemptively adopted it. Lu community members,” spokes- he decided to go dark. lus’ rules make it a liability for “Obviously, it'd be great to get all said fewer customers have meant woman Laura Feyer said. e Bronx restaurateur managed some. the money in advance, but I just less in tips for his service sta . to resta since the city entered need to get open and gure it out,” He’s already had to supplement Getting in the way phase one, but nancially, the shut- Reimbursement comes later Kanyanta said. his servers’ pay to meet the mini- Even for those the program could down has been devastating. Like e $30,000 isn’t doled out up- In an era of racial reckoning, the mum, so $15 an hour isn’t a stretch. help—restaurants with the means the overwhelming majority of the front. Approved applicants can re- stimulus does o er New York City “You can't ask workers to come to front most of the award—bureau- city's restaurants, Lu couldn’t make ceive a quarter of their total award restaurants the chance to reinvent back for subminimum wage when cracy will get in the way, Angueira May's rent. He owes taxes, as well as in advance, but they have to pay the themselves as egalitarian. e pro- tips are down 75% to 90%. It's just said. money to vendors and the State Li- remainder out of pocket, then wait gram, co-sponsored by One Fair not going to happen,” said Saru Ja- “I appreciate that they’re looking quor Authority. for reimbursement. Wage, a nonpro t hoping to end yaraman, president of One Fair at minority-owned businesses, es- On June 11, Mayor Bill de Blasio Under normal circumstances, tipped minimum wage, incorpo- Wage. pecially in these areas,” Angueira released a $3 million plan to help restaurants operate on notoriously rates a pay bump for waitsta , who Still the NYC Hospitality Alliance, said. “But I am a minority business owners like Lu. thin pro t margins. e initial im- are disproportionately women of a group representing restaurants owner and a lot of us are very mom- e Restaurant Revitalization pact of Covid-19, documented in color. citywide and a vocal critic of One and-pop and hand-to-mouth and Program extends $30,000 to 100 March by the National Restaurant Fair Wage, says the program’s deci- don't have the back-o ce paper- family-owned restaurants in com- Association, showed that New York Tipping point sion to include a future-looking pay work, nancial documentation that munities hit hardest by Covid-19— restaurants made 58% less year- Even after restaurants exhaust structure in a time of economic un- is going to be necessary for this.” mainly in minority neighbor- over-year. their reward, they’re required to pay certainty is unfair to owners. Similarly sick of top-down poli- hoods—to pay their employees $20 After three months of scraping by employees $15 an hour, a $5 raise “You shouldn't put small-busi- cies, Lu suggested the mayor's o ce an hour for a minimum of six on takeout alone—if that—fronting they have ve years to meet. Cur- ness owners who’re in the midst of a try a novel approach: weeks, then $15 an hour going for- $22,500 isn’t an option for many. rently tipped restaurant work is one crisis in a situation where they may “If you really want to help the city, ward. “We don’t have money right of the few occupations that doesn’t agree to something, because they're have a representative come to us e stimulus doesn’t o er now,” Lu said. “We’re running on pay the $15-an-hour minimum. in severe nancial distress, that they and say, ‘OK, what is that you enough money, said Alfredo loans.” In states where higher minimum would never agree to under normal need?’” Lu said. ■
Vol. 36, No. 24, June 29, 2020—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for bimonthly in January, July and August and the last issue in December, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: call 877-824-9379; fax 313-446-6777. $3.00 a copy; $129.00 per year. (GST No. 13676-0444-RT) ©Entire contents copyright 2020 by Crain Communications Inc. All rights reserved.
4 | CRAIN’S NEW YORK BUSINESS | JUNE 29, 2020
P004_CN_20200629.indd 4 6/26/20 4:25 PM IN THE MARKETS
Some Fairway Market Invitation to Prequalify and to Bid Rehabilitation and Flood Mitigation of the New York Aquarium, Brooklyn, NY Turner Construction Company, an EEO Employer, is currently soliciting bids for locations closing the Rehabilitation and Flood Mitigation of the New York Aquarium from subcontractors and vendors for the following bid packages:
airway Market’s location in end for the Fairway lo- BP #34 Electrical Manhole EMH-2 including excavation & concrete work Harlem is closing for good, cations, considering (Bid, Payment & Performance Bond Required) and stores in Brooklyn, supermarkets experi- Only bids responsive to the entire scope of work will be considered and, to be Queens and Nassau County enced a huge jump in successful, bidders must be prequalified by Turner. CertifiedM/WBE and Small could shut down within a month, business after the lock- F Business (13 CFR part 121) companies are encouraged to submit. according to public documents and downs began. a person close to the matter. “ e surge in sales In order to receive the bid packages, potential bidders must submit a complete Except for the Harlem location, was temporary and not Subcontractor/Vendor Prequalification Statement. Prior prequalification all other Fairway stores in Manhat- a good indicator of the submissions that remain current will be considered as previously submitted or tan will survive because they were long-term prospects for may be updated at this time. All bidders must prequalify by the bid deadline July acquired by a rival after the grocer the stores or the chain 16, 2020 and submission of a prequalification statement not later than July 2,
led for bankruptcy earlier this year as a whole,” a person KORB FLICKR/ZACH 2020 is strongly encouraged. All bidders must have an acceptable EMR, and for the second time. Neither Fair- close to the matter said. will be subject to government regulations such as 44 CFR and Federal Executive way nor its bankruptcy lawyer, Sun- leases for Fairways in Woodland Order 11246. Successful bidders will be required to use LCP Tracker compliance ny Singh of Weil Gotshal & Manges, Customers moved on Park and Paramus, N.J., were ac- verification software. Note that while this is a New York City prevailing wage returned requests for comment. Once the city’s most beloved gro- quired by Amazon, which is expect- project, union affiliation is not required forBP#34. e Harlem Fairway was set to cer, whose store openings were ed to turn them into Whole Foods. A begin a store-closing sale last week, treated as major news, Fairway led Georgetown, Brooklyn, Fairway was To obtain further information about contracting opportunities and/or the pre- according to a federal for bankruptcy in January, bought and will become a Key Food. qualification package and bid solicitation package/s, please contact Macarena court ling. It is expected its second Chapter 11 in Fairway’s 35,000-square-foot Har- Bermudez ([email protected] or 212-229-6000.) to close no later than June four years. Customers had lem store opened in 1995 and was The date for the virtual public opening at the Turner Construction Company office 30, a ling with the state moved on to places like an early sign of the neighborhood’s located at 375 Hudson Street, New York, New York, is Department of Labor Wegmans or Whole Foods, renaissance. Its wide aisles and large July 17, 2019 at 11 am. shows. e store has and Fairway’s compara- inventory of everyday and gourmet about 165 unionized em- ble-store sales fell 5% last items were a revelation to New York- ployees. Crain’s reported year and its $66 million ers accustomed to grocery shopping in April that the store was loss left it unable to service in cave-like conditions. poised to close. its formidable debt load. Village Super Market agreed to Fairways in Red Hook, AARON ELSTEIN e debt is a hangover buy the parking lot but not the Brooklyn; Douglaston, from when a private-equi- store, which made it harder for an- Queens; Plainview and ty rm with no experience other buyer to step forward, and Westbury, Long Island, are expect- in supermarkets bought Fairway none did. e location houses Fair- ed to close by July 17, the company from the founding family in 2007 for way’s corporate headquarters. disclosed in its labor department $150 million and tried to expand the Rob Newell, president of the ling. A person close to the matter business quickly. United Food & Commercial Work- said a last-minute rescue is possible Fairway’s agship Upper West ers Local 1500, which represents for the Brooklyn, Queens and West- Side store was acquired this year as 2,300 Fairway employees, said bury stores. e Plainview location part of a $76 million deal with Vil- management bungled the brand by was to begin a store-closing sale lage Super Market, which pledged to failing to invest in stores and sta. last week, according to a court doc- keep the name and also bought Fair- “ ey took what was like no other ument. way’s Upper East Side, Chelsea, Kips market,” he said, “and made it like It’s a sad and perhaps surprising Bay and Pelham Manor sites. e every other market.” ■
REAL ESTATE NoMad luxury sales offer Build your trust & glimmer of hope for market estate administration
BY NATALIE SACHMECHI hit more than $25 million. he said. “Everybody wants to be on process on a solid In a sign of a resurging market, this tiny island.” ullish New Yorkers are buying the Madison House units were not Madison House is still under con- foundation. their way into an uncertain discounted, Inzirillo said, and the struction, and residents won’t be future and giving hope to the buyers are local. able to move in until at least sum- Bcity’s sluggish residential real estate mer 2021, said Evan Stein, the de- market. Sales drop velopment company’s CEO. e Four condos at Madison House, Manhattan condo sales at those buyers who have already snapped We provide the support an un nished luxury development prices fell an average of 70% in May, up units signed the deals after only in the NoMad neighborhood, went compared to the same month last virtual showings and seeing render- you need for administration under contract in the past month at year, according to an Elliman re- ings of the building, he said. market prices, said Leonard Inzi- port, although the biggest sales gap In March the pandemic stopped and tax e ciency. rillo, a Douglas Elliman real estate was for homes between $5 million construction in its tracks, Stein said. grassicpas.com/trust-estate-services agent who helped broker the deals and $10 million. Builders stopped work for about 90 collectively worth at least $6 million. e building’s design may be days and went back to the project “I feel very encouraged,” Inzirillo more appealing in a pandemic-rid- after the city leaped into phase one. grassicpas.com/trust-estate said, “because of the sales that we den city where going out in public ough the project is now three have achieved during di cult times is a risk, Inzirillo said. A shared out- months behind schedule, Stein with our o ce being shut down.” door area, 11-foot ceilings and doesn’t think the pandemic has e 200-unit tower, which is be- enormous windows are things that hampered sales opportunities. ing developed by JD Carlisle, has people are realizing they want, now “ e more di cult the selling en- made $75 million in sales to date that they’ve spent so much time at vironment is, the more this build- and is expected to sell out at more home, he said. ing will stand out,” he said. than $700 million. More than 15% Buyers looking at properties out- Like his buyers, he’s betting on the of the building has been claimed. side the city are going to regret it, city bouncing back in no time. “Am I e in-contract units cost be- Inzirillo said. going to sit and worry all day about tween $1.4 million and more than “Once they’re there, they’re go- selling these units? No,” he said. “I $5 million, although the penthouse ing to realize they miss New York,” strongly believe in New York City.” ■
JUNE 29, 2020 | CRAIN’S NEW YORK BUSINESS | 5
P005_CN_20200629.indd 5 6/26/20 3:00 PM CORONAVIRUS ALERT Here’s how to get your PPP loan forgiven SBA, Treasury Department worked with Congress to make much-demanded changes
BY BRIAN PASCUS e rule has a second June 5 will now have ve years to re- component. Businesses that pay the amounts of the PPP loan he federal government has hire employees back on sala- that are not turned into a grant nally o ered some clarity ries lower than before the through the forgiveness provisions. on how mom-and-pop pandemic—because of a de- ose borrowers who received PPP businesses can avoid re- cline in business activity or a money before June 5 must pay their Tpaying their bailout loan—a major lack of revenue—will not be nonforgiven portions of the loan sticking point in the Paycheck Pro- penalized on their loan back within two years, although tection Program. amount as long as they can they can work with the bank that In the past month o cials in the document their drop in full- provided the loan to get an exten- Small Business Administration and time employee salary was re- sion. the Treasury Department have lated to Covid-19 restrictions. Furthermore, the SBA has worked with Congress to make amended the law to allow defer- much-demanded changes to the • The requirement to use funds ments on payments on principal, law, which culminated in the PPP within eight weeks of receiving interest and fees associated with Flexibility Act, signed by President the loan has been moved to 24 PPP loans to the date the SBA Donald Trump on June 5. weeks. is is another im- remits the loan to the bank. Previ- With all remaining PPP loan ap- portant change that could ously the period was six months plications expiring this week—June have rami cations on how from the date of the loan. is 30 is the last day to apply—here are much forgiveness is allocated amendment keeps the clock from the changes small-business owners to small-business owners. ticking too quickly on when a bor-
need to know to receive forgiveness BLOOMBERG Borrowers who applied for rower is expected to pay back these on current or future loans. and received PPP funds after costs. than 60% of the loan amount on to Feb. 15, or pre-Covid-19, levels June 5 will have 24 weeks (six • The amount one is required to spend payroll, he or she will still be eligible from being penalized on their loan months) during which they need to • The SBA offers an EZ-Application for on payroll has shifted. e rst itera- to have a portion of the entire loan amount, as payroll is tied directly to spend the money. eligible small-business owners. is tion of the PPP required small-busi- forgiven. e other expenses that the number of employees an owner ose who received money be- three-page PPP loan application ness owners to spend 75% of the can be funded from the remaining can hire or had hired before the fore June 5 will still have eight weeks simpli es the paperwork process. loan money they received on em- 40% of the loan money and still be shutdown. from the start of the loan to spend It is available to small-business ployee payroll before it could be forgiven are rent, mortgage pay- Businesses have been given an the money if they choose to, as they owners who either are self- considered for forgiveness. After an ments, utilities and interest on extension to Dec. 31 to hire back might nd it advantageous to get it employed or have no employees, outcry from small-business owners, loans. Expenses outside this realm employees they had on sta before o their books. ese borrowers are did not reduce the wages of their who considered the stipulation re- are not forgiven. February of this year. Basically the o ered the exibility to receive the employees by more than 25% or strictive in light of a host of other “safe harbor” rule applies to those 24-week extension. can prove they experienced a re- operating costs, the revised PPP • There is a new PPP loan forgiveness small businesses that are still shut duction in business activity be- loan shifts that requirement to 60%. “safe harbor” rule. is change in the down. ey can apply for a full PPP • The repayment terms have been ex- cause of the pandemic and did not Furthermore, even if a borrowing loan terms protects businesses that loan and not feel forced to hire back tended too. Small-business owners reduce their business wages by small-business owner uses less were unable to hire employees back employees when they are not open. who received PPP money on or after more than 25%. ■ Vornado explores Crain’s Small Business The tools you need to navigate Trump building sales uncertainty BLOOMBERG complications to a potential deal. Crain’s Small Business Critics have long faulted him for his Small businesses are scrambling ornado Realty Trust is refusal to sell his business when en- to adapt to a di cult business weighing the sale of o ce tering the White House. environment. Crain’s Small Business buildings in New York and Vornado, a major New York land- Toolbox oers critical information and VSan Francisco co-owned by Presi- lord run by Steven Roth, has a part- dent Donald Trump’s company, nership with Trump in the San Crain’s Small Business resources to help those businesses not only survive, but thrive. people familiar with the matter Francisco and Manhattan build- have said. ings as the result of a series of trans- New York–based Vornado said it actions that began years ago. It is exploring options to recapitalize started when Trump’s majority 1290 Sixth Ave. in Manhattan and partners in a residential project on 555 California St., a prominent San Manhattan’s West Side sold the de- Fransisco tower, according to a velopment against Trump’s wishes. CrainsNewYork.com/crains-business-toolbox statement. e company owns a Trump, believing the properties 70% controlling interest in the part- could have fetched more, sued his nerships that own the buildings. partners, including investors Henry e Trump Organization may Cheng and Vincent Lo, who then also sell its stakes in the buildings, bought 555 California St. and 1290 some of the people said. Represen- Sixth Ave. In 2007, while his lawsuit tatives declined to comment. was ongoing, Vornado bought the e Trump Organization’s 30% investor group’s 70% stake in the of- stake in the buildings has been de- ce buildings for $1.8 billion. scribed as passive, meaning the Vornado shares have dropped business doesn’t actively oversee 27% since the beginning of March, the properties. e San Francisco with investors concerned Manhat- building is home to tenants includ- tan o ce buildings face a long re- ing Goldman Sachs Group, KKR & covery from the pandemic. Co., Microsoft Corp. and McKinsey e company is spending more & Co. than $2 billion to redevelop the Neuberger Berman and State area around Penn Station, hoping Street Bank are among the tenants to draw tenants to an area that is at 1290 Sixth Ave. typically bustling with commuters Trump’s ownership could add and tourists. ■
6 | CRAIN’S NEW YORK BUSINESS | JUNE 29, 2020
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CN019760.indd 1 6/26/20 12:55 PM president K.C. Crain senior executive vice president Chris Crain group publisher Mary Kramer EDITORIAL associate publisher Lisa Rudy publisher/executive editor Frederick P. Gabriel Jr. Mayor’s restaurant rescue fund EDITORIAL editor Robert Hordt assistant managing editors serves too small a portion Christine Haughney (special projects), Janon Fisher, Gabriella Iannetta (digital) senior editor Telisha Bryan nyone who has ever Restaurants operate on very slurped an oyster at tight margins; most of them don’t associate editor Lizeth Beltran (digital) Cosenza’s Fish Market last even in good times, which art director Carolyn McClain on Arthur Avenue these are certainly not. photographer Buck Ennis knows how important All of this goes to say that the data editor Gerald Schifman food is to New York City. city’s eateries need help if they are senior reporters Aaron Elstein, ACulinary monuments through- going to survive. ey must if New Jonathan LaMantia out the ve boroughs are arguably York is going to come back from reporters Suzannah Cavanaugh, as iconic and important as Lincoln this plague. Ryan Deffenbaugh, Gwen Everett, Center or the Statue of Liberty. A Now comes Mayor Bill de Blasio Jennifer Henderson, Brian Pascus, pastrami sandwich from Katz’s, with his Restaurant Revitalization Natalie Sachmechi perogies from Veselka, smoked Program, a $3 million fund set up contributors Ronald DeCicco, salmon and scrambled eggs at to assist 100 restaurateurs and their Cara Eisenpress, C. J. Hughes, Barney Greengrass, fried chicken employees in areas heavily Steve Krupinski, Danielle McManus Sladek, and wa es from Melba’s—we’d go damaged by the outbreak, with Mark Yawdoszyn on, but we’re making ourselves $30,000 grants to keep them going. to contact the newsroom: hungry. is is an e ort to help minority www.crainsnewyork.com/staff And you get the point: is is a businesses weather the pandemic. 212.210.0100 food city. at’s a good thing. 685 Third Ave., New York, NY 10017-4024
Every business is su ering Unfortunately, the program is BLOOMBERG because of the pandemic shut- going to fail because of the way it ADVERTISING down, but New York’s bars and has been set up and all the strings have a lot of loose cash sitting it’s a paltry amount in a city of www.crainsnewyork.com/advertise attached to it. around. more than 25,000 restaurants. senior account managers Roland Espinosa, Under the program (see If that weren’t enough of a ey all need help. Stuart Smilowitz, Tori Weil THE CITY’S EATERIES story on Page 4), restaurant burden, the mayor has further Most restaurateurs we spoke to account executive Devin Cavallo owners must dig into their doomed his program by requiring don’t disagree with paying their integrated marketing manager Jonathan Yan, NEED HELP IF THEY ARE own pockets rst. Only a eateries that participate to pay workers more, but now is not the 212.210.0290, [email protected] quarter of the grant— their waitsta $15 an hour—$5 time to force it. people on the move manager Debora Stein, GOING TO SURVIVE $7,000 at most—will be more than legally required for Finally, for a mayor who prides [email protected] doled out to businesses tipped sta . We believe in waiters himself on his egalitarian ethos, CUSTOM CONTENT restaurants have been hit particu- enrolled in the program. and waitresses earning a living he should try to be a little more director of custom content larly hard. e city will reimburse eateries wage, but currently this just puts inclusive when casting about for Patty Oppenheimer, 212.210.0711, According to the Bureau of for the rest of the cash within two more of the onus on minority solutions to business problems [email protected] Labor Statistics, a quarter-million weeks after they show the proper businesses to solve a problem that during the pandemic. senior manager, custom content jobs have been lost since March, payroll records. the government is supposed to x. As Bronx restaurant owner Sophia Juarez, and only 14,000 have returned so e city’s restaurants have been For this program to work, the Mark Lu told us: It would be nice if [email protected] far. Most of these jobs are not limping along for the past three mayor needs to dig deeper to nd the mayor listened to what his particularly high-paying ones to months on a trickle of business more money. ree million constituents wanted instead of EVENTS begin with. from take-out orders. ey don’t dollars may sound like a lot, but telling them what they needed. ■ www.crainsnewyork.com/events manager of conferences & events Ana Jimenez, ajimenez@crainsnewyork
OP-ED REPRINTS director, reprints & licensing Lauren Melesio, 212.210.0707, [email protected] Diversity in the workplace will PRODUCTION production and pre-press director Simone Pryce make tech companies truly thrive media services manager Nicole Spell SUBSCRIPTION CUSTOMER SERVICE BY CAROLINE PETERSEN female work sta . bile applications or explainer vid- Most creative processes start www.crainsnewyork.com/subscribe e technology and media in- eos, where human interfaces and with a storyboard, where teams de- [email protected] haotic times become calm dustry in the city is one of the larg- designs need to be intuitive for termine purposes and functions 877.824.9379 (in the U.S. and Canada). when people unify around a est economic engines in the entire wide-scale audiences. Assembling and the general ow of informa- $3.00 a copy for the print edition; or single purpose. state. Around 291,000 people work a team with a breadth of cultural tion. You think about everything $129.00 one year, for print subscriptions CWhile protests are organized in this sector, which accounts for understanding is key to building that can go wrong, so you can x with digital access. across the city by people seeking roughly $124.7 billion in economic successful tech projects for a glob- any issues before the rst line of justice and fair treatment, entre- output. Of all the workers in the al marketplace. code is written. Entire contents ©copyright 2020 preneurs in the tech industry can city’s high-tech industry, only 18% Assumptions in algorithms are Crain Communications Inc. All rights take steps in their own businesses identify as Black or Latinx, and just Vital role more likely to occur when every- reserved. ©CityBusiness is a registered to focus on inclusion and diversity. 24% of them are female. Since the Immigrants play a vital role in the one on the project has similar trademark of MCP Inc., used under license Inclusion is more than a just action general New York City workforce is national economy, especially in the backgrounds—such as race, gen- agreement. in an unjust world; diverse teams 37% Black or Latinx and 50% fe- tech industry. It should not come as der or religion—because they all CRAIN COMMUNICATIONS INC. improve the quality of the work male, tech industry demographics a surprise that when immigrants think similarly. Homogenous chairman Keith E. Crain and generate more revenue. are literally half as diverse as the are involved in high-skilled sectors, teams stunt the creative process; vice chairman Mary Kay Crain ere are numerous coding and city itself. those teams are more productive. diversi ed workforces maximize president K.C. Crain graphic design schools in our city Diversity is good for creativity After my lawyer advised me that creativity. senior executive vice president Chris Crain and state that have helped create and strong governance, and di- starting my own business was the When the tech sector commits secretary Lexie Crain Armstrong the expansion we have seen in the verse teams make more money. best way for me to live and work in to true diversity, businesses will be editor-in-chief emeritus Rance Crain sector. ese institutions are why so Di erent backgrounds and experi- the United States, I had to challenge better run and more productive, chief nancial of cer Robert Recchia many companies lease o ce space ences bring diverse perspectives assumptions everywhere, and I with teams that re ect the world in New York City, knowing that the that allow for assumptions to be made sure I was making the right around them. ■ founder G.D. Crain Jr. [1885-1973] talent they need is already here. challenged so better products can moves to become successful. Im- chairman Mrs. G.D. Crain Jr. [1911-1996] Unfortunately, the data show our be made. migrant employees in media and Caroline Petersen is the founder industry needs to do more to in- is is true for a variety of proj- technology bring that same tenaci- and creative director of Gallery crease the number of minority and ects, but it’s especially true in mo- ty and drive to their workplaces. Design Studio.
8 | CRAIN’S NEW YORK BUSINESS | JUNE 29, 2020
P008_CN_20200629.indd 8 6/26/20 4:38 PM OP-ED Reinvent the food chain to empower small farms and ranches
BY ARIANE DAGUIN ter shortages and loss of biodiver- hard to do what’s best for the ani- sity are all proven results of large- mals and the environment. he connection between the scale, unsustainable farming. overconsumption of meat Red meat, in particular, has come Essential animals and the negative impact of under re for its environmental im- Biodiversity is key. We have ne- Tfactory-farming practices on the pact—livestock accounts for 14.5% glected it, privileging monocultures health of consumers and the envi- of the world’s greenhouse gas emis- supported by chemicals while de- ronment has been emphasized sions each year. It’s not surprising pleting the Earth of its necessary during the crisis we are living in. factory farming has given rise to nutrients to renew itself. An essen- e pandemic shows us how some aggressive calls for people to tial part of this circle of life is raising fragile and weak our existing food eliminate meat altogether. responsibly domesticated animals. chain is. Yet it is foolish to declare But jumping to this extreme will If we were all to become vegetari- that vegetarianism is the solution. kill us. ans, ranchers and farmers would It’s important to educate our- For eco-conscious consumers stop raising these animals that are selves and be aware of the distinct considering a vegetarian diet, key to biodiversity. di erences between moderately there’s a better alternative: moder- As a purveyor of meat, I have consuming beef and poultry from ate consumption of wholesome, seen rsthand during this crisis small, sustainable farms and grab- sustainably raised meats that are how consumers are looking more
bing burgers and fried chicken four good for you and the Earth. and more for better, tastier and AP PHOTOS to ve times a week at fast-food Sustainable farming actually healthier alternatives. In fact, the restaurants. e consequences are bene ts the environment and ex- Department of Agriculture says de- food chain that will enable respon- local markets. more than just the huge di erence pands the Earth’s natural resource mand for organic goods has shown sible small farmers and ranchers to We also need the last link on the in taste and your personal health. base. Biodiversity is necessary for double-digit growth since the raise their animals through re- chain: an educated consumer. It is Factory farming breeds less a- the planet to function at all levels. 1990s. Chefs led the way by con- spectful breeding and caring prac- absolutely your prerogative wheth- vorful and less nutritious meats, In animal husbandry, it means stantly searching for the best prod- tices. at includes one controver- er to eat meat. To save the Earth, and its negative impacts on the en- encouraging polyculture and rais- ucts. And they are the ones who al- sial link: the processing facilities. however, we need to continue to vironment are well-documented. ing various species of domesticat- ready know that a happy cow is a Small local abattoirs need to be re- eat the right meat. ■ e Environmental Protection ed animals in a rotation on sylvo- tasty cow. Consumers and—again suscitated. ey are not as ecient Agency reported that agriculture pastures (pastures where soon—restaurant chefs will contin- as the humongous slaughterhous- Ariane Daguin is the founder, was responsible for 9% of green- biodiversity of plants and trees is ue to celebrate the farm-to-table es and have slowly disappeared. owner and CEO of food seller and house gas emissions in the U.S. in encouraged). e added bene ts movement and take responsibility But they are local to the ranchers manufacturer D’Artagnan, 2016. Increased pollution, land are plentiful, starting with sup- for the health of the environment. (shorter transportation, less stress headquartered in Union degradation, climate change, wa- porting small farmers who work We urgently need to reinvent a to the animals) and close to their Township, N.J.
NOMINATIONS CLOSING SOON! NOMINATIONS OPEN Crain’s New York Business will highlight Notable Women in Accounting and Consulting, which will publish as a section within Crain’s New York Business in the September 28 issue. This feature is a celebration of women executives working in accounting and consulting who have impacted New York City in major ways and honors their professional, civic and philanthropic achievements.
Nominate today at crainsnewyork.com/notableaccounting2020
Nominations must be completed by the deadline, July 24, to be considered. Questions? Contact [email protected]
JUNE 29, 2020 | CRAIN’S NEW YORK BUSINESS | 9
P009_CN_20200629.indd 9 6/25/20 5:19 PM CORONAVIRUS ALERT Banks to close branches and reduce of ce space as revenue falls
BY AARON ELSTEIN branches in the city. It and Bank of rise in online bank- America combined have about ing registrations— year ago JPMorgan Chase 9,000 locations nationally. some branches will opened a 12,500-square- disappear. foot branch on Madison Joys of digital “I believe the pace Avenue, complete with Past rumors of branches’ demise of branch closures Astate-of-the-art ATMs and a “digital have proved to be exaggerated. In- will accelerate faster advice bar.” It was a muscular show deed, across the ve boroughs than forecast,” Rob- of faith in the future of branches, there are more branches—nine, to bins said. and the bank planned to open 400 be exact—than before the nancial If signi cant more in cities where it has little re- crisis, according to Federal Deposit numbers of branch- tail presence. Insurance Corp. data. Even though es close, it would be “We’re going right at Bank of most customers seldom visit these a big blow to land- America, folks, in Charlotte—their locations, banks have been reluc- lords, especially hometown. I can’t wait,” Chief Exec- tant to close them because they feel those who have seen utive Jamie Dimon told employees a visible street presence distin- retail tenants suc- at the ribbon-cutting ceremony. guishes them from the scores of n- cumb to Amazon. en Covid-19 hit. Now the 1,714 tech startups o ering checking ac- branches run by Chase and other counts, credit cards and the like. Of ce needs banks that anchor commercial cor- But rationalizing the need for But the post- branches is getting Covid-19 changes at harder now that banks might not be “THE PACE OF BRANCH locked-down cus- con ned to street- tomers have been level. CLOSURES WILL ACCELERATE exposed to the joys ey also likely
of digital banking will have to do with BUCK ENNIS FASTER THAN FORECAST” for the past three reducing o ce months. space in the future as they race to where, how e ective one can be in 30% by the Trump Organization. ridors around the city are looking “We believe this shift to digital match costs with revenues that work from home,” State Street Chief e weighted average cost for an of- obsolete—not to mention that service channels will enable branch Morgan Stanley estimates will fall Executive Ron O’Hanley said in an ce is $86.58 per square foot, ac- they’re suddenly a luxury that reductions without losing share to by 6% next year. Some may see April conference call. “And I would cording to a Vornado presentation revenue-squeezed institutions can ntechs,” Morgan Stanley said. drops of as much as 24%. have to believe that over the medi- last month. At that rate, State Street no longer a ord. Ira Robbins, chief executive of In such an environment, it is im- um and long term, you’ll see us would pay $9.2 million in annual Morgan Stanley analysts said in a Valley Bank, a New Jersey–based perative to cut costs, and o ce having less space than we do to- rent for a single o ce. report last week that Wells Fargo, lender with branches in the city, space is a logical place to look, es- d a y .” Robbins said Valley Bank expects the nation’s largest retail bank with said he believes brick-and-mortar pecially when banks have discov- It isn’t clear where State Street to cut o ce space by 20%. 5,300 locations nationwide, could locations will remain important. ered many employees can work might look to cut space. e institu- “Organizations need to rethink close 10% of its branches. Other big But as customers grow more com- from home. tion leases 106,000 square feet at workplace strategy,” he said. “We retail banks could do the same, in- fortable banking online—Valley has “I think it’s surprised everybody, 1290 Sixth Ave., an o ce tower 70% will be more thoughtful in the use cluding Chase, which has 367 seen a 170% quarter-over-quarter not just at State Street but else- owned by Vornado Realty Trust and of o ce space.” ■ Housing courts reopen; eviction cases resume with restrictions
BY NATALIE SACHMECHI courthouse and get it done quickly, For example, immigrant work- he added. ers—namely those who are undoc- ousing courts are back in Now Marks is requiring them to umented or working for cash—typ- business, but there’s a use snail mail, which could take a ically don’t have the paperwork to catch: Eviction proceedings couple of weeks to get an index show that they are eligible for un- Hwon’t start immediately. number, he said, and then they can employment insurance, which is All new eviction cases led in city try to serve the tenants with papers. one of the requirements for avoid- Housing Court will be postponed As for cases led before the pan- ing eviction through August, Weav- regardless of whether a tenant re- demic hit, the court is o ering only er explained. sponds, state Chief Administrative online hearings with a judge and Either way, there’s no guidance Judge Lawrence Marks has ordered, only if both parties have legal repre- in the language of the executive or- giving tenants more time to grapple sentation. der about how to prove nancial with their new reality. Even with the stay and delays, hardship, Weaver said. Originally, Gov. Andrew Cuomo’s tenants are worried they will be “It’s total chaos,” she said. moratorium put a stop to all evic- forced from their home with each tions and shut down housing courts step the courts take in the direction No reserves for the state. of reopening, housing-rights advo- Many of the property owners As of June 20, however, only ten- cates say. who are members of the Small ants who can prove they have suf- e burden will fall on them to Housing Association have tried to fered nancially from the pandem- prove the nancial hardship they’ve negotiate payment plans with their ic are safe from eviction proceedings endured because of the pandemic, tenants or applied for relief, while
until Aug. 20. Now that the rst pro- BUCK ENNIS said Cea Weaver, a campaign coor- others are going to be taking their tective layer of Cuomo’s plan has dinator at Housing Justice for All. tenants to court, St. Paul said. expired, everyone else is fair game, Housing Association. the pandemic, expressed frustra- What makes more sense, she It’s unrealistic for them to contin- although the city won’t see the It could take as long as a year be- tion over the pause. said, is banning evictions to provide ue to give concessions to their ten- wave of evictions that tenants are fore a tenant is actually evicted for “New cases are going into the relief for tenants and getting state ants, he added. worrying about just yet. nonpayment of rent, he said. Twilight Zone—they aren’t going resources for landlords to operate “Most members of the group “It’s not like the oodgates to the anywhere,” said Mitchell Posilkin, their buildings. don’t have reserves in the capacity courts are opening at this moment,” Twilight Zone chief counsel at the Rent Stabiliza- Some renters will have di culty to have tenants not pay and stay said Richard St. Paul, executive di- Landlords, already su ering from tion Association. To le cases, law- proving how the pandemic has hurt longer than they’re supposed to,” rector of the New York City Small a wave of rent nonpayment during yers previously could go into the them nancially, she said. St. Paul said. ■
10 | CRAIN’S NEW YORK BUSINESS | JUNE 29, 2020
P010_CN_20200629.indd 10 6/25/20 5:09 PM ASKED & ANSWERED
normal capacity would be so that you can maintain social VIJAY DANDAPANI DOSSIER safety. Hotel Association of New York City WHO HE IS President and CEO, What will hotel landlords do about the property tax bill INTERVIEW BY NATALIE SACHMECHI Hotel Association of New York City they’ll get July 1? What happens if they can’t pay? A majority are going to default because they simply don't AGE 62 lmost every hotel in Manhattan has have the money. You can’t take blood out of a stone. I GREW UP India realize the city doesn’t have money, and the city’s had chosen to close while waiting out the an erosion of revenue on a number of levels. Some of pandemic, but Vijay Dandapani, CEO RESIDES Harlem the hotels will catch up. Most of them have to work out of the Hotel Association of New York EDUCATION Bachelor’s in hotel management, something with the city. In the normal course of things, City, hasn’t missed a day of work. By lobbying the Cornell University there is an interest rate of 18% if you default, and then A there is a penalty rate on top of that. Then if a whole NEW HOME Dandapani immigrated to the U.S. in 1985 to governor to keep hotels open (they were deemed year goes by, the city initiates “in rem proceedings,” and attend college. essential) and helping inns navigate record low the city’s lien takes precedence over any debt or any occupancy rates as tourists and business trav- PREVIOUS WORK In 2015, Dandapani assumed the role of other lien on the hotel. elers stay away, Dandapani is working to guide chairman of the board at the Hotel Association; he became its president and CEO in 2017. Before What do you think the city should have or could have the city’s battered hospitality industry toward its that, he spent more than two decades at the done to help hotel landlords? eventual recovery. helm of Apple Core Hotels, which operates We really believe they could have deferred taxes. four inns in the city. He’s been working in It’s not really the city’s fault. I think the city’s trying What are hotels thinking about right now? the industry for more than 30 years. and the federal government should step in because Well, the No. 1 thing on their minds is, How do we this is an industry that has 55,000 employees. reopen? When do we reopen? We were among the rst FATHER’S FOOTSTEPS His dad was a That's massive. The city can help us by targeting and most drastically affected. Revenue fell to 5% for ghter pilot in the Indian Air Force, and our cash ow problems on a temporary basis, but the rst week and still remains some 70% below what Dandapani enjoys ying recreationally. certainly we are looking to advocate for the federal it was for the same period last year. The U.N. General government to help. Assembly’s annual meeting, which usually kicks off our fall business season, is not going to take place. New The few hotels that are already What will the recovery look like? York City always had the highest occupancy other than open are doing hand sanitizer Recovery to levels somewhat close Orlando of any city in the country, and those occupancy stations and temperature to what we had in 2019 is not going rates are simply not going to be there for a long, long checks and providing personal to happen until 2024—that’s four time. protective equipment. If a years from now. You’re going to see customer walks in without recovery next year from the horrible How are closed hotels preparing to reopen? a face mask, then hotels trench that we nd ourselves in this Big brands have apps where you can check in ahead of will provide one. Meeting year. Clearly, the moment we have a time. You can also pick your room ahead of time, so you spaces will operate at vaccine or a cure, you'll see travel
will bypass the front desk and go straight to the room. half or a third of what the come back pretty quickly. ■ COURTESY OF HANY
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JUNE 29, 2020 | CRAIN’S NEW YORK BUSINESS | 11
P011_CN_20200629.indd 11 6/25/20 5:14 PM T:10.875”
“I am grateful for being able to sleep knowing my husband is safe and well cared for. Thank you for that gift.” – Marcia S. – T:14.5”
Thank you, Marcia, for your kind words, and the kind words of so many families. The safety of our residents at the Hebrew Home at Riverdale is our highest priority. It’s why we’re testing all staff twice a week, we’ve instituted deep cleaning measures that meet the highest clinical standards, and we continue to reimagine our campus to make it safer than ever for all residents.
To learn more, go to riverspringhealth.org/safety
CN019763.indd 1 6/23/20 11:14 AM
RSH6627_HebrewHome_June_Crains_FINAL.indd Crain’s
Job Info Approvals Client NewYork-Presbyterian Users FreelancerProd / Alina Levina Art Director Maciek Job NYOD 6032 Current Date 6-15-2020 1:11 PM Copywriter Eric Creation Date 6-15-2020 10:26 AM Account Dana x210 MATERIALS PREPARED BY Live 10.25” x 14” Studio Artist Jovan x250 Trim 10.875” x 14.5” Printed at None SEIDEN Proofreader 212.223.8700 Bleed 11.125” x 14.75” Page # 1 Project Mgr Meredith x239 Inks Fonts Notes Cormorant Garamond (Regular, Bold, SemiBold Italic), Open Sans (Light, SemiBold Italic) Cyan, Magenta, Yellow, Black Images **CHHA Melissa Smart Assistant Director.jpg (CMYK; 636 ppi; 47.14%), **DSC_0348_SWOP.jpg (CMYK; 1811 ppi; 16.56%), **DSC_0407_SWOP.jpg (CMYK; 1674 ppi; 17.92%), **DSC_0413_SWOP.jpg (CMYK; 1767 ppi; 16.97%), **MG_0220_SWOP.jpg (CMYK; 1204 ppi; 24.9%), **IMG_0208_SWOP.jpg (CMYK; 384 ppi; 38.96%), **Housekeeping_SWOP.jpg (CMYK; 3084 ppi; 9.73%), **FoodServicesRP3_SWOP.jpg (CMYK; Round: FINAL NEXTNEW YORK FTER THREE MONTHS OF LOCKDOWN, New York City is starting to reopen—and not a moment too soon for most of us. No one knows how long it will take for the city to get back to normal—if, in fact, it ever does. Because we have never been through an event like this before, there is no Ablueprint to follow, and opinions vary on just what the city will look like six months, a year or even two years from now. A lot depends on how soon treatments and a vaccine will be developed, which will give workers and consumers the con dence to interact with one another again. But New Yorkers have not been sitting idly by. From big business to small business, from the city and state governments to cultural institutions, New York has been planning its comeback all along. This special issue on what’s next for New York highlights the steps businesses have been taking to recover. In addition to stories about the industries most affected by the pandemic, we asked some of New York’s top movers and shakers to tell us what they predict. We also took a look back at how the pandemic unfolded, through both graphics and photos. Finally, we asked readers to tell us what they are grateful for after living through months of con nement. Their responses may surprise you. — Robert Hordt, Editor ISTOCK
JUNE 29, 2020 | CRAIN’S NEW YORK BUSINESS | 13
P013_CN_20200629.indd 13 6/25/20 6:22 PM NEXTNEW YORK HOSPITALITY VOICES WORKING TOGETHER, Reopening the inn SIDE BY SIDE Owners grapple with ways of making their hotels safe
BY AARON ELSTEIN
IN THE PAST THREE months, avid Orowitz’s new hotel rising above West 47th Covid-19 has created fundamen- Street promises to be a sight in itself. e facade tal shifts in the way people do will have an 18,000-square-foot LED sign, and all business. From new health and 669 rooms will overlook Times Square. In addi- wellness protocols to staggered Dtion to retailers and restaurants, an outdoor stage 30 feet start times to working from above street level will allow performers to sing their own home, we have all adjusted to lullaby to Broadway. focus on the safety and well-be- “We’re on the most attractive corner of the Western ing of our fellow New Yorkers. Hemisphere,” said Orowitz, an executive at developer L&L BUCK ENNIS As the curve continues to Holding. BILL RUDIN atten and as we slowly reopen But the coronavirus has forced Orowitz to rethink some our city, however, I believe that plans. Ventilation systems may have to change to improve people will want to return to the of ce. air ow. Guests probably won’t use keys to enter their Why? To solve problems—big and small—we rooms, which may be cleaned less often during their stay. need interaction, collaboration and coordination. Windows may be recon gured so they open. Now more than ever, working together and being Orowitz, a former Trump Organization executive who together help us effect change and innovate. This helped turn the Old Post O ce and Clock Tower in Wash- is not exclusive to business. If we are to begin ington, D.C., into perhaps the world’s most famous hotel, to address the large-scale systemic racial and is fortunate to have time on his side. His hotel isn’t expect- economic inequalities that exist in our country and ed to open until 2022, and he doesn’t think any design
city, we can do so only by sitting next to each other, ARCHITECTS PC MERIDIAN DESIGN ASSOCIATES changes will aect the project’s $2.5 billion price tag sig- engaging, listening and understanding. We cannot ni cantly. do this separated from one another in the privacy of REAL ESTATE “Obviously we’re evaluating things,” he said. our homes. So are the rest of the city’s hoteliers, who are grappling Cities exist for a reason—they offer unparal- with existential questions, such as how do you make these leled opportunities for engaging with a diversity of Opening the of ce doors public spaces, from which peo- people, cultures, thoughts and ideas that can’t be ple constantly come and go, beamed into a home of ce. They are the economic Landlords take extraordinary measures to ensure safe reopening safe? How many hotels does the engines that power modern economies, and despite city need when the number of all the previous crises we have overcome, they have visitors is way down? How do grown. BY NATALIE SACHMECHI four people sitting in a cluster. He prefers smaller confer- you square leaving guests alone A new survey from the architectural rm Gensler ence rooms, which keep out large groups, and large confer- in an industry called hospitality? shows that the overwhelming majority of people s the city’s workforce starts trickling back into the ence rooms stamped with adequate distance markers. “Many discussions are going want to work in the of ce for most of their week; barren o ce buildings, the real estate industry is on,” said Vijay Dandapani, chief only 12% of U.S. workers want to work from home giving workspaces a post-pandemic makeover. Common spaces and perks executive of the Hotel Association of New York City (see full time. The report also found that people want e changes start with the guidelines for com- Landlords are trying to gure out what to do about the Asked & Answered, page 11). more space for social distancing and an assigned Amercial buildings that the Real Estate Board of New York common areas and public amenities they invested in exten- For now, the only certain thing is a city with nearly workspace. released on June 4. ose guidelines called on landlords to sively in recent years. At Park Avenue Plaza, owner Ken 123,000 hotel rooms will soon have more. is year eight The of ce is the place where mentorship occurs, stock up on cleaning supplies, spread out seating in com- Fisher of Fisher Brothers removed the seating in the build- new hotels with nearly 2,000 rooms are expected to open, where young people learn business and social skills. mon spaces and require people entering a building to wear ing’s glass atrium. He is rethinking a luxury gym he built at PwC found. Next year an additional 25 hotels are expected, It is also where companies build brand loyalty and masks and have their temperature taken. another tower. and an additional eight for 2022-23. culture. The commercial real estate services rm But landlords are betting that workers will want to return “I’m not saying that amenities are gone forever,” Fisher “If there’s one bright light coming out of this economic Cushman & Wake eld reports that 70% of Gen Z to the city’s o ce buildings to collaborate in person, said said, “but there’s going to be changes in the ways people shock for existing Manhattan hotel operators, it’s that the and 69% of millennials are encountering challenges Bill Rudin, REBNY’s chairman and Rudin Management’s interact.” supply of both existing hotel rooms and those under devel- at home, compared with 55% of baby boomers. CEO. Rudin is on Gov. Andrew Cuomo’s NY Forward advi- Fisher is considering automatic doors, voice-activated opment is expected to decrease in the near term,” PwC Younger workers develop business know-how by sory board, which worked on ways the city should reopen, elevators and ultraviolet light in heating, ventilating and Managing Director Warren Marr said. being with people, observing them and working to- including protocols for building reentry and managing con- air-conditioning systems. Letting in more fresh air will be gether as part of a team. We cannot do any of that struction sites. great for the building, said Fisher, pandemic or not. Some of Finding alternatives alone, within our own four walls. “I think working from home will become part of the eco- his tenants have asked for thermal testing, which he’s seri- It’s possible that hotels will be converted for other uses, Believe it or not, New York City has bucked the system,” Rudin said. “But you still need to connect.” ously considering. Each testing unit can run several thou- which could help the city’s housing shortage. But hoteliers trend and major deals are still getting done. Earlier Beyond the trade association’s brushstroke guidelines, sand dollars. Argibay is a fan of under- oor cooling, which this month, social media giant TikTok committed moves more slowly than a central air system, but won’t to 232,000 square feet at One Five One in Times blow potential contaminants into the air. Square—a blockbuster move that’s indicative of the “COLLABORATION HAPPENS WHEN Tenants, however, shouldn’t expect these changes to be bigger countertrend at play. implemented on their rst day back, Fisher said. In the The CEOs of Microsoft and Google agree that PEOPLE HAVE A CERTAIN LEVEL meantime, he said, more old-school methods, such as the future of work won’t be entirely remote. Will the marking spots where people should stand in elevators and of ce of the future be different? OF COMFORT IN THE WORKPLACE” hiring an elevator operator to push buttons for passengers, The answer is yes: Companies may need more will be used. space, and workplaces will seek to reduce density. landlords, architects and even lawyers are hard at work to On the other hand, we are optimistic that the of ce map out in greater detail what lies ahead, from density of Pacing the return building will always be a central hub for creativity, o ces to running lobby spaces, for the city’s workspaces. Companies are contemplating staggered shifts, which innovation and entrepreneurship. could take a number of forms, said Richard G. Leland, a real On almost every Zoom meeting I have been on, Giving some space estate attorney at Akerman. Some people could come in all the participants say they can't wait to get back e biggest thing on the minds of landlords as employees Mondays and Wednesdays, he said, while others would to work and be together again. It will take time, return to work is how they will handle the new density re- come in Tuesdays and ursdays. Fridays could be remote and there will have to be a bridge period, but New quirements, said Antonio Argibay, the managing principal days for all, for fairness. Yorkers will be back. at architecture rm Meridian Design. Rows of people work- Staggering would reduce tra c and occupancy levels in a ing closely together aren’t conducive to safe working condi- building and help people inside keep an appropriate social Bill Rudin is co-chairman and CEO of Rudin tions, he said, in these times or ever. His rm never en- distance; at the same time it would reduce elevator conges- Management Co. and chairman of the Real Estate dorsed super dense o ces, he said, and it’s more important tion, now that only a few people are allowed in elevators at Board of New York. now than ever to give people space. the same time. “People supporting dense spaces touted it as collabora- e real estate industry understands a resurgence in cas- tive and a good way to induce collaboration,” Argibay said. es in the fall or the discovery of a vaccine will bring more “I think collaboration happens when people have a certain changes. It is trying to remain open to all possibilities. But level of comfort in their workplace.” Fisher believes many of these changes are for the long-term Argibay prefers distancing more than the plexiglass bar- bene t of the building. riers that many experts suggest as a safety measure. In new- “Are these going to be permanent changes?” Fisher said.
er oor plans he’s working on, he doesn’t have more than “It depends on how long the hangover from this lasts.” ■ BUCK ENNIS
14 | CRAIN’S NEW YORK BUSINESS | JUNE 29, 2020
P014_P015_CN_20200629.indd 14 6/25/20 5:38 PM HOSPITALITY VOICES Reopening the inn NEW YORK NEEDS Owners grapple with ways of making their hotels safe THE HOSPITALITY
BY AARON ELSTEIN may prefer to turn their buildings into o ces, because INDUSTRY apartment rents and sale prices could be under pressure for avid Orowitz’s new hotel rising above West 47th a while. Street promises to be a sight in itself. e facade “If your rental income is sliding, why convert to another will have an 18,000-square-foot LED sign, and all use that’s not working well?” Dandapani said. NEW YORK CITY IS the greatest 669 rooms will overlook Times Square. In addi- He added that it’s unlikely many hotels would slash pric- city in the world. Dtion to retailers and restaurants, an outdoor stage 30 feet es as they did after 9/11. Back then New York had the world’s That does not mean we above street level will allow performers to sing their own sympathy; until recently it was one of the hottest spots for don’t have challenges. lullaby to Broadway. the coronavirus. Indeed, for the more than 60 Manhattan We are living at the epicen- “We’re on the most attractive corner of the Western hotels that closed when the pandemic hit, the question is ter of a global pandemic while Hemisphere,” said Orowitz, an executive at developer L&L whether it’s worthwhile to reopen at all. experiencing recent mass Holding. protests that call for reforming But the coronavirus has forced Orowitz to rethink some Worker impact systems that have pained and BUCK ENNIS plans. Ventilation systems may have to change to improve e owners’ decisions will aect the lives of tens of thou- JONATHAN TISCH deprived people of color for air ow. Guests probably won’t use keys to enter their sands of laid-o hotel workers. Many worry that reopened generations. rooms, which may be cleaned less often during their stay. hotels will slash what’s become a major source of mid- This serious time calls for Windows may be recon gured so they open. dle-class jobs. Enabling guests to check into their rooms introspection from each of us individually and Orowitz, a former Trump Organization executive who using an app could prove a good way to promote social dis- from the business and civic community collec- helped turn the Old Post O ce and Clock Tower in Wash- tancing, but hotel sta remain necessary to identify sick tively. With so many of us hurting for so many ington, D.C., into perhaps the world’s most famous hotel, guests and get them medical help. reasons, how can we move forward? is fortunate to have time on his side. His hotel isn’t expect- “ ere’s no question in my mind some hotels will take Some comfort can be taken and con dence ed to open until 2022, and he doesn’t think any design advantage of technology to reduce sta ng,” a hotel union gained by looking at our past. Whether it was
MERIDIAN DESIGN ASSOCIATES ARCHITECTS PC MERIDIAN DESIGN ASSOCIATES changes will aect the project’s $2.5 billion price tag sig- o cial said. in the 1970s, when the city was on the verge ni cantly. Industry o cials say some hotels are contemplating an of nancial collapse, or in 2001, when the twin “Obviously we’re evaluating things,” he said. end to room service and minibars, although others see towers were destroyed, or in 2012, when Super- So are the rest of the city’s hoteliers, who are grappling those as important amenities for guests wary of dining out. storm Sandy hit, a common theme emerges: New with existential questions, such as how do you make these “If hotels are safer for workers, they’ll be safer for guests,” Yorkers come together and work through the Opening the of ce doors public spaces, from which peo- said Rich Maroko, general issues, and our city emerges stronger. ple constantly come and go, counsel at the New York Hotel Travel and tourism is one of the city’s larg- Landlords take extraordinary measures to ensure safe reopening safe? How many hotels does the “IF HOTELS ARE SAFER FOR and Motel Trades Council. est and most important industries, employing city need when the number of hundreds of thousands of women and men, many visitors is way down? How do WORKERS, THEY’LL BE Letting air in of whom are people of color and immigrants four people sitting in a cluster. He prefers smaller confer- you square leaving guests alone Whenever guests start com- looking for their piece of the American dream. It ence rooms, which keep out large groups, and large confer- in an industry called hospitality? SAFER FOR GUESTS” ing back, new hotels and per- generates hundreds of millions of dollars in tax ence rooms stamped with adequate distance markers. “Many discussions are going haps older ones will look dier- revenue that support essential services for all on,” said Vijay Dandapani, chief ent. e most noticeable change New Yorkers. Common spaces and perks executive of the Hotel Association of New York City (see may be one that Orowitz is looking into: windows that open. In the aftermath of 9/11 many predicted the Landlords are trying to gure out what to do about the Asked & Answered, page 11). at feature disappeared in the 1950s, when Lever House, city would never recover. I was honored to serve common areas and public amenities they invested in exten- For now, the only certain thing is a city with nearly among other state-of-the-art buildings, provided hermeti- as chairman of New York Rising, a task force sively in recent years. At Park Avenue Plaza, owner Ken 123,000 hotel rooms will soon have more. is year eight cally sealed environments to keep out pollution. Covid-19, created at the time to help revive our economy Fisher of Fisher Brothers removed the seating in the build- new hotels with nearly 2,000 rooms are expected to open, however, highlights the risks of people breathing recirculat- through tourism. As a city, we quickly appreciated ing’s glass atrium. He is rethinking a luxury gym he built at PwC found. Next year an additional 25 hotels are expected, ed air and droplets. the emotional healing that culture, restaurants, another tower. and an additional eight for 2022-23. Because many Manhattan hotels and o ce towers are events and visitors provide. That need for healing “I’m not saying that amenities are gone forever,” Fisher “If there’s one bright light coming out of this economic quite wide, creating open windows could be destabilizing is once again palpable. said, “but there’s going to be changes in the ways people shock for existing Manhattan hotel operators, it’s that the when air rushes through one side of the building, said Hen- Travel and tourism led the way to our city’s interact.” supply of both existing hotel rooms and those under devel- rik Schoenefeldt, a professor of sustainable architecture at recovery. This time we are challenged different- Fisher is considering automatic doors, voice-activated opment is expected to decrease in the near term,” PwC the U.K.’s University of Kent. ose buildings may have to ly. Our restaurants, shops, theaters, museums elevators and ultraviolet light in heating, ventilating and Managing Director Warren Marr said. design new ltration systems that pull air and water drop- and cultural attractions have been shuttered air-conditioning systems. Letting in more fresh air will be lets up to the ceiling, Schoenefeldt said. for months. Like then, their revival is critical. great for the building, said Fisher, pandemic or not. Some of Finding alternatives “Natural ventilation is much less expensive,” he said. “If Reopening will bring back visitors, and more im- his tenants have asked for thermal testing, which he’s seri- It’s possible that hotels will be converted for other uses, you can combine Covid-19 with a sustainability agenda, we mediately, it will restore our neighborhoods’ spirit ously considering. Each testing unit can run several thou- which could help the city’s housing shortage. But hoteliers create better buildings.” ■ and vitality. It will allow a lot more people to get sand dollars. Argibay is a fan of under- oor cooling, which back to work. moves more slowly than a central air system, but won’t This renewal is essential to New York City’s re- blow potential contaminants into the air. covery. The Coalition for New York Hospitality and Tenants, however, shouldn’t expect these changes to be Tourism Recovery, recently announced by NYC & implemented on their rst day back, Fisher said. In the Co., our city’s of cial destination marketing orga- meantime, he said, more old-school methods, such as nization, was created to help the city rise again. marking spots where people should stand in elevators and As a group, we represent some of the city’s hiring an elevator operator to push buttons for passengers, most signi cant economic engines and job will be used. creators, but also its heart and soul. The ve-bor- ough coalition, which includes hotels, restaurants, Pacing the return cultural and performing arts institutions, Broad- Companies are contemplating staggered shifts, which way, theaters and attractions, sports organiza- could take a number of forms, said Richard G. Leland, a real tions, retailers, as well as medical and public estate attorney at Akerman. Some people could come in health experts, is uniquely positioned to help Mondays and Wednesdays, he said, while others would New Yorkers, and eventually the world, reconnect come in Tuesdays and ursdays. Fridays could be remote safely with the city we love. days for all, for fairness. Diversity is our strength. Together, we can Staggering would reduce tra c and occupancy levels in a shape a brighter and more equitable future for all building and help people inside keep an appropriate social as we recommit ourselves to the promise of New distance; at the same time it would reduce elevator conges- York—a place of opportunity that offers some- tion, now that only a few people are allowed in elevators at thing for everyone and a place where everyone is the same time. truly welcome. e real estate industry understands a resurgence in cas- es in the fall or the discovery of a vaccine will bring more Jonathan Tisch is chairman and CEO of Loews changes. It is trying to remain open to all possibilities. But Hotels & Co. and co-chairman of Loews Corp. Fisher believes many of these changes are for the long-term bene t of the building. “Are these going to be permanent changes?” Fisher said.
“It depends on how long the hangover from this lasts.” ■ BUCK ENNIS
JUNE 29, 2020 | CRAIN’S NEW YORK BUSINESS | 15
P014_P015_CN_20200629.indd 15 6/25/20 5:46 PM NEXTNEW YORK
VOICES CORPORATIONS ARE CRITICAL TO NYC
BIG BUSINESS does not com- mand much affection in New York’s political circles, but that will have to change if our city is going to accelerate its recovery from the economic consequences of the Covid-19 outbreak. Throughout the pandemic pause, Wall Street and other BUCK ENNIS large rms successfully main- DE BLASIO KATHRYN WYLDE tained operations and payrolls by moving swiftly to a remote work from home model. Manhattan was hollowed out, yet the nancial system and global commerce continued to function. What the Covid-19 experience proved is that New York’s largest companies and their employees do not have to be here. So why should we care? For one thing, the nancial and professional
services, media, information and real estate entities NYCMAYORSOFFICE/FLICKR that make up the corporate sector directly employ 1.2 million New Yorkers and are responsible indirect- POLITICS ly for an additional 2.1 million jobs in small business and construction. They are a major source of the tax revenue Budget troubles that funds the city budget. Finance and insurance account for 35% of the city’s business income taxes; City and state of cials contend with a dire future as New York reopens professional services follow closely behind at 31%. Finance represents 20% of all private-sector wages in the city and employs most of the top 1% earners, BY BRIAN PASCUS e retail sector, already in trouble before the out- who pay 43% of all city personal income taxes. break, will experience a death spiral for years as stores In the near term, big companies will not ee the s New York begins to reopen from the Covid-19 shutter and consumers continue to order online, Berger city. They have leases or own buildings here, and lockdown, the city and the state face multi- predicted. they are part of an ecosystem of professional and billion-dollar holes in their budgets. Many out-of-work New Yorkers have left the city, he personal relationships that cannot easily be replaced e city expects a $9 billion shortfall in reve- noted, an exodus that could create chaos throughout all or replicated. Corporate leaders have homes here Anue in the next two years. sectors of the economy. and are heavily engaged with the boards of the city’s “We’re going to be in a horrible budget situation for “It won’t happen all at once, but it will have a major great cultural, educational and medical institutions. years,” Mayor Bill de Blasio has said. impact on city activities and an enormous impact on rev- Most are committed New Yorkers. Albany’s scal house is in no better order. State reve- enues,” Berger said. The same may not be true of corporate employ- nues are projected to be $8.1 billion less than they were ees, at least half of whom are millennials without in 2019, and Gov. Andrew Cuomo said state tax revenues Borrowing options long-term ties to the city. Surveys by the Partnership would not return to their March level until 2024. e mayor and the governor have pressed the federal for New York City indicate that only about 10% of But to city and state budget experts, even these grim government for aid. But the divided Congress and the corporate workers plan to return to the of ce during projections seem optimistic. Trump administration have yet to come to the rescue. the summer; that number builds up to 30% by the “I don’t think it’s unreasonable to say we are going to As the city waits for help, de Blasio has asked the state end of the year. Many have settled elsewhere, in lose $15 billion in projected tax revenue and even closer to grant him as much as $7 billion in borrowing authority larger, cheaper living accommodations, and plan to to $20 billion,” Nicole Gelinas, an urban economics and to meet operating expenses. So far Albany has refused. come back only when they feel safe and can social- nance expert at the Manhattan Institute, said of the Borrowing would be irresponsible, said Berger, who ize in favored gathering places. city’s budget. was appointed executive di- It will be months before a coronavirus vaccine is Unchecked, the nancial rector of the Financial Con- available and fear of disease subsides. In the inter- crisis will get worse, said E.J. “THINGS ARE NOT COMING trol Board in 1976. im the restaurants, retailers, vendors and service McMahon, research director “You understand that debt businesses throughout the city that depend on the at the Empire Center for pub- BACK THE SAME WAY AS has to be paid for, and who is corporate of ce workforce are in severe jeopardy. lic policy. going to pay for it? e fu- We need action now. “ e government spending BEFORE THIS STARTED” ture,” he said. “ ere is no- Employers and commercial building owners are side, left alone, increases ev- body who is going to pay for ahead of the game. They have retro tted their of ces ery year. Spending is not stationary,” McMahon said. “Ev- it who has a voice or a vote in that borrowing.” and instituted protocols that guarantee a healthy erything goes up. Everything is designed to increase.” e experts say that before the city starts taking on workplace. Similarly, the MTA has done everything in debt or makes the case for federal aid, de Blasio, who has its power to provide a clean and safe commute. Slow return increased his budget by $20 billion since taking o ce, But the package of incentives is incomplete. e state has built-in spending obligations to health must take an ax to spending. Public of cials and community and civic leaders insurance for its employees, pension contributions, debt “I would like to see a hard-ass budget that shows how need to signal loudly that corporate workers are service, school aid, Medicaid and mental health pro- much can be taken out of present spending,” Berger said valued and will be welcomed back. Assurances that grams. before getting in a dig at the mayor’s well-documented New York is committed to a stable and more com- Even before the pandemic, the state was facing a $6 tness routine: “If you can’t take $4 billion or $5 billion petitive personal income tax structure would help, billion budget gap because of Medicaid expenditures. from the city budget, then you should stay in the gym in along with a rm commitment to plans for reopening Cuomo had closed the gap by cutting expenditures un- Brooklyn.” schools in the fall. It is critical that crime is under der the government-subsidized health program. But by A full-service wage freeze across the city’s union work- control, which became a question a few weeks back, delaying cuts until the pandemic is over, the problem force, caps on all executive salaries and furloughs of non- when looting took place. looms down the road. essential municipal employees are in order, the Manhat- The timely restoration of the more than a million It is optimistic, the experts say, to think the nancial tan Institute’s Gelinas said. jobs and $9 billion in city tax revenue that was lost picture will be rosier by then. “We really have to go down to the bone in terms of e - to the pandemic is an enormous challenge, but New “ ings are not coming back the same way as before ciency before we can cut frontline services,” she said. Yorkers can rise to the challenge if we unify around a this started,” said Stephen Berger, an investment banker At the state level, the Empire Center’s McMahon rec- plan that draws upon all our strengths, including the who helped steer the city through the late-1970s scal ommends, all public-sector salaries should be frozen for talent and resources of our corporate sector. crisis. two years. He advocates for cutting school aid to the Commercial real estate, a major source of tax revenue wealthiest districts and laying o or furloughing workers Kathryn Wylde is president and CEO of the Partnership for the city, will take a massive hit, because the work- who are nonessential. for New York City. from-home environment has led companies to rethink “You have to reduce the workforce,” he said. “It’s not their o ce needs, Berger said. pleasant, but you have to do it.” ■
16 | CRAIN’S NEW YORK BUSINESS | JUNE 29, 2020
P016_CN_20200629.indd 16 6/25/20 5:49 PM SPONSORED CONTENT
How to protect your employees as workplaces reopen
ven as the novel coronavirus persists in many areas of the United States, much of the country has been opening back up. Employees are returning to the workplace, and for many, life is Eregaining a certain degree of normalcy. But it can’t be the same as it was. Employers have a responsibility to consider new workplace policies to reduce the spread of Covid-19. At the same time, they may be extending work-from-home options to accommodate workers with special health risks or simply because they’ve learned that working from home doesn’t hurt productivity.
Crain’s Content Studio turned to Michael McGuire, chief executive of cer of UnitedHealthcare of New York, to learn how employers can help protect employees’ health in this new normal.
CRAIN’S: How can employers employers should decide how emotionally, even as you begin and employees protect against many people can be in an discussions about returning to infection in shared indoor and elevator. They should require work. outdoor spaces? people to wear masks in common areas. And, obviously, CRAIN’S: What have MICHAEL MCGUIRE: they should keep the of ce we learned about how Michael McGuire, chief executive of cer at UnitedHealthcare of New York. Fortunately, there are lots of sanitized. employers can empower guidelines that have been their workforces to stay and mental health hotlines Encourage them to establish a made available by both the CRAIN’S: What are other healthy, whether they’re and telehealth capabilities. relationship with a primary care Centers for Disease Control factors to consider as you continuing to work remotely You want to make sure your physician if they don’t have (CDC) and local governments bring employees back to or transitioning back to the employees recognize that one already. When Covid-19 and states. As we reopen, we work? of ce? they’ve got those options at rst hit, we heard, “If you think need to continue following their disposal. It’s really just you have it, go to your primary the guidelines about social MCGUIRE: You want to make MCGUIRE: What we’ve staying in front: communicating care physician and ask for a distancing, wearing masks and sure people are comfortable learned is that there are a lot often and communicating test.” Well, if you didn’t have continuing to wash our hands. with coming back. That’s really of ways to access medical care. simply. Don’t overcomplicate it. a primary care physician, how important. If you are high risk, You used to assume that if you did you access that test? This We’ve provided our employers or if you are living with needed care, you would either You also really need to continue is an opportunity to increase with links to all the local, someone who is high risk, go to the emergency room, promoting wellness, in general, employee engagement in their state and CDC sites so maybe it’s not safe to come urgent care or your primary to your employee population. health moving forward. they have one place to get back. As an employer, you care physician. But we’ve information. ProtectWellTM, need to consider options for found that you can access a a new smartphone app that those employees, including physician on your phone, your we’ve launched with Microsoft, remote or telework options. iPad or your computer. Virtual allows employees to screen doctor visits and telephonic themselves for Covid-19. They Much of the focus of these visits weren’t used much in the last few past. Now folks are accessing “EMPLOYERS NEED TO THINK months has these services — not just for been on Covid-19, but for anything that ABOUT HOW THEY ARE physical typically you see the doctor Health plans built for I spy pinkeye. SUPPORTING EMPLOYEES ON health. But for. And physicians took to it, the pandemic too. Doctors’ of ces without A BEHAVIORAL HEALTH BASIS.” has also telehealth capability quickly affected got telehealth capability so can answer some questions mental health. We’ve been they could keep in touch with and receive direction based on through an unprecedented their patients and help them those answers. Do they need period, which has caused a avoid the urgent care center or to get a test? Do they need to lot of stress and anxiety. the emergency room. notify their employer or see Employers need to think about their doctor? how they are supporting We’ve also learned you can use employees on a behavioral telehealth for mental health CRAIN’S: What can employers health basis. services, as well as some do to help prevent the spread physical therapy, occupational of Covid-19 at work? We’ve got an emotional therapy and speech therapy. support line set up through Once you use a service like With new interactive tools for Oxford1 members like MCGUIRE: You need to give our partners and UnitedHealth that, you’ll typically use it 24/7 doctor video chats, health plans from Oxford are employees lots of information Group Optum. That number again. As a result, employers designed to help your employees get care and support.2 about how they should interact is available 24/7 to all of our need to think about their Wherever, whenever. Welcome to the new Oxford — now with other employees—make members. It’s staffed by mental telehealth bene t design. with even more ways to connect your employees to care. the guidelines clear. Companies health professionals, who can should have lots of hand support folks as they deal not CRAIN’S: How can employers sanitizer in common areas and only with the physical part be proactive in getting oxfordhealth.com high-contact areas. We need to of Covid-19 but also the their employees access to continue cleaning of ces, with behavioral health stress of telehealth services? a focus on high-contact areas the last three months. And, 1 Oxford insurance products are underwritten by Oxford Health Insurance, Inc. Oxford HMO products are underwritten by Oxford Health Plans (NJ), Inc. and Oxford Health Plans (CT), Inc. like doorknobs, handrails, of course, going back to work MCGUIRE: Like anything 2 Beginning with 5/1/20 policy effective dates for New York small group (1-100) and New Jersey computers, phones, printers means more stress: how do we else with bene ts, it’s about small group (2-50) fully insured employers. and elevator buttons. To help get comfortable with being in communication. Employees These plans have exclusions and limitations. Contact the company for complete details. employees feel comfortable an of ce again? So you need need to know what’s available B2B EI20165631.0 6/20 ©2020 Oxford Health Plans LLC. All rights reserved. 20-166802 about returning to work, to support your employees to them in terms of physical NEXTNEW YORK HEALTH CARE VOICES TO THRIVE, BROAD- Hospitals resuscitate thousands WAY AND NEW YORK of delayed elective surgeries NEED EACH OTHER Governor OKs facilities to resume backlog of nancially lucrative operations
NEW YORK CITY HAS long been BY JONATHAN LAMANTIA the epicenter of commerce, cul- ture and innovation, welcoming or months Adina Perullo has been waiting to have a all who seek to know more, be surgery that could save her life. more and dream more. Perullo, a 36-year-old mother of two from Levit- Most recently we have be- town, planned to have an operation in early April to come the center of the Covid-19 Fremove her ovaries to prevent ovarian cancer. About a week pandemic and an economic cri- before her procedure, Perullo was told by her doctor that sis that has practically brought North Shore University Medical Center in Manhasset had BUCK ENNIS the city to a standstill. I know postponed all elective surgeries to divert resources to the CHARLOTTE that New York, with the contin- pandemic. All across the state, hospitals ceased nonurgent ST. MARTIN ued support of elected of cials surgeries to comply with a March 23 order from Gov. An- and a revival of the fabled “I drew Cuomo. Love New York” campaign, will Some patients needing operations deemed safe to post- rise beyond this crisis. pone, such as those to address heart problems, cancer or Tourism is one of the city’s hardest-hit industries, hernias, have been waiting months for treatment.
with projections showing a 20% decrease in inter- BUCK ENNIS Last year Perullo underwent a double mastectomy after national visitors for some time. This sector sustains doctors found she had stage-two breast cancer and testing thousands of people who work in restaurants, ARTS & CULTURE showed she had a mutation in the BRCA-2 gene that puts hotels and attractions including people at higher risk for several cancers. Broadway. “I’ve seen it go from nothing to something virtually over- Our most recent research BY THE Changing the landscape night,” Perullo said. “ at’s where my fear lies.” report indicates that Broadway NUMBERS e state Department of Health granted New York City directly and indirectly sustains Cultural institutions reinvent their revenue streams hospitals permission to resume nonurgent surgeries June 97,000 local jobs. In our last 8—Long Island and Westchester facilities got the green light complete season, Broadway in late May—but the busiest facilities have thousands of pro- was responsible for an econom- 97K BY GWEN EVERETT up our doors, it will be in a reduced capacity,” she said. cedures to schedule. Perullo is working with her doctor to ic impact to the city of $14.7 NUMBER OF Take the virtual tours and remote classes the garden of- nd a date for surgery. billion, with attendance topping local jobs efore the pandemic, the Tenement Museum on the fers to schools. e $150 cost was cut to $60. Department of Hospitals had been able to perform medically necessary the combined attendance of the supported by Lower East Side had a revenue model that was the Education grants are making up the di erence, said Annie surgeries with wide discretion as to which should be per- New York metropolitan area’s 10 Broadway, both envy of its peers. e museum paid for 75% of its Tan-Detchkov, the garden’s director of education. formed. at discretion was needed to avoid adverse e ects. professional sports teams: the directly and yearly expenses from ticket sales, events and pro- In addition, garden ocials are applying for a compost- A study from the Annals of Oncology, published online in indirectly Mets, Yankees, Rangers, Island- Bgrams. In an industry where other nonpro ts rely on do- ing grant to cover expenses at the farm they keep on their May, found evidence that modest delays in surgery could ers, Knicks, Liberty, Giants, Jets, nors and government grants, it was self-sustaining, said 39-acre lot. signi cantly a ect a patient’s chance of survival. It noted the Devils and Nets. Morris Vogel, the museum’s president. But there are strings that come with new money sources. need for “rapid attention to any backlog already accrued. We will need time—months $14.7B But that business model changed drastically when the Losing earned revenue means a loss of autonomy, said Hospitals were balancing performing surgeries with pre- or possibly years—to rebuild our ECONOMIC coronavirus shut o these income sources and the muse- Susan Lacerte, the garden’s director. Grants and donations serving sta and supplies for Covid-19 care. Every patient audiences. We are working with impact of um had to turn to philanthropists. In three months it more usually come with obligations or are designated for certain undergoing and recovering from surgery would lead to the elected of cials on the local and Broadway to than doubled its donors, from 2,000 to 5,000, Vogel said. programs, she explained, but with earned revenue, organi- higher use of protective equipment, which was in short sup- federal levels to advocate for New York City e museum now aims to generate half of its yearly operat- zations themselves decide how to spend the money. ply, and a need for an operating-room ventilator. the substantial nancial support ing budget through donations and grants. Manhattan’s Hospital for Special Surgery, known for its required to reopen existing “To other organizations that weren’t as able to bring in a Losses for everyone proli c knee, hip and other joint surgeries, said in late May shows, launch new productions paying public, we looked like rock stars,” Vogel said. “Now Even wealthier institutions, such as the Metropolitan that it had a backlog of about 7,000 patients. and subsidize some of the losses we’re in a place where even if the public wants to, we can’t Museum of Art, are rethinking their business approaches. At the peak of the crisis, New York’s operating rooms were we have sustained. take their money.” While the Met bene ts from the earnings of a $3 billion mostly dormant. HSS dropped to as low as 8% of its total op- Broadway is a vital cultural and economic part While the outbreak may have shocked the revenue model endowment, 46% of the Met’s operating budget comes erating-room capacity during that period. It performed of this city and New York’s greatest cultural export, for most businesses, it delivered from earned revenue sources, about 35,000 surgeries last year. important to communities across the country and an especially strong blow to cul- according to its most recent - Louis Shapiro, its CEO, said the orthopedic hospital creat- recognized around the world as the best in live tural institutions—they are “IT DOESN’T MATTER IF IT’S nancial ling. e coronavirus ed a system for classifying elective surgeries in mid-March entertainment. scheduled for the later phases of PHASE ONE OR PHASE cost the museum nearly $150 ahead of the executive order to halt procedures. We all need Broadway to come back—and to do reopening, and they depend on million in lost revenue with After rst working to accept non-Covid-19 patients from that, New York has to come back. tourists, who won’t soon return FOUR. IT’S A MATTER OF ticket and retail sales, said Ken- other hospitals, HSS made the decision in April to admit NYC & Co. has been leading these efforts, and in the same numbers. e coro- neth Weine, a museum spokes- positive patients as well, converting its operating rooms into support from the Empire State Development Fund navirus is forcing art institutions PEOPLE AREN’T COMING” man. intensive care units. will be essential. This support will bring new life to to nd revenue in new places, Once the museum reopens, “ ese are patients who the "I Love New York" campaign, which will remind and they expect the changes in the revenue model to be- Weine said, social distancing measures and a slump in were canceled for surgery the world of the wonders that New York has to offer, come permanent. tourism will keep earned revenue down. back in March, and what may including the best performers in an industry ready at means Vogel is looking to monetize parts of the busi- e pandemic has been “tremendously impactful,” he have been elective then is no to welcome everyone back to our theaters and our ness that he never considered, such as putting up a paywall said. “We’ve never been closed longer than three days. longer elective because their hometown. on its website. We’re going on three months.” condition has deteriorated,” Broadway stands ready to support this cam- “It doesn’t matter if it’s phase one or phase four. It’s a mat- e Met is trying to nd ways to o set the decline in Shapiro said. “ ousands of paign. ter of people aren’t coming,” Vogel said, adding museum tourism. e museum was once the No. 1 destination for patients we canceled months ago started to come back goers may be a particularly cautious crowd. Chinese tourists, Weine said. Seventy- ve percent of its slowly.” Charlotte St. Martin is president of the Broadway yearly visitors aren’t even from New York, he noted. As HSS opens up more of its operating rooms, the hospital League Inc. New money sources “We need to reintroduce the Met to New Yorkers,” he has needed to thoroughly disinfect areas that served as care It’s not just the Tenement Museum contemplating these said. sites for Covid-19 patients and replace the anesthesia ma- changes. chines, which had been converted into makeshift ventila- Before the pandemic, the Queens Botanical Garden was Long-term recovery tors for critically ill patients. working on growing earned revenue to $1 million a year by Representatives of nearly a half-dozen museums who All patients must test negative for the virus ahead of their hosting weddings, implementing admission fees and boost- spoke with Crain’s said reopening doors wouldn’t even be- operation. ing gift shop sales, said Regina Minerva, the garden’s visitor gin to overcome the hit to earned revenue. services manager. “We’re expecting, and I think many museums are, that Finance factor Now, she said, the goal is to nd new ways to nance we will probably be in the 20%-25% capacity zone for social e drop in surgeries also led to a nancial hit to hospitals businesses that visitors would have paid for. distancing reasons alone,” said Adam Weinberg, the Whit- that rely on that revenue, particularly from orthopedic and “It’s ipped us on our head,” Minerva said, referring to ney’s director. cardiac procedures, to stay solvent. the pandemic. Reopening won’t be about making money for quite some Elective hospital admissions can make up 30% or more of “In every aspect we’re hurting a little bit, and we’re trying time, he said, adding that the museum could even lose a hospital’s revenue, according to an analysis by researchers to ip our business model because even when we do open money when it reopens to a smaller public. ■ at Weill Cornell Medicine in the medical journal JAMA.
18 | CRAIN’S NEW YORK BUSINESS | JUNE 29, 2020
P018_P019_CN_20200629.indd 18 6/25/20 5:58 PM HEALTH CARE VOICES Hospitals resuscitate thousands COVID-19 CAN MAKE of delayed elective surgeries US STRONGER, MORE Governor OKs facilities to resume backlog of nancially lucrative operations RESILIENT
BY JONATHAN LAMANTIA I’VE BEEN ASKED by many peo- ple both inside and outside of or months Adina Perullo has been waiting to have a health care, what will our world surgery that could save her life. look like after the pandemic? Perullo, a 36-year-old mother of two from Levit- What will be the impact on busi- town, planned to have an operation in early April to nesses? What will be the toll on Fremove her ovaries to prevent ovarian cancer. About a week health care? And most impor- before her procedure, Perullo was told by her doctor that tantly, how will this change us North Shore University Medical Center in Manhasset had and our communities? BUCK ENNIS postponed all elective surgeries to divert resources to the MICHAEL Regardless of your profes- pandemic. All across the state, hospitals ceased nonurgent sion or societal status, the surgeries to comply with a March 23 order from Gov. An- DOWLING pandemic has been an unrelent- drew Cuomo. ing experience with a high price Some patients needing operations deemed safe to post- tag. Whether it has been the pone, such as those to address heart problems, cancer or loss of a job, education, socialization or even loved hernias, have been waiting months for treatment. ones, Covid-19’s expensive tally has spared no one.
BUCK ENNIS Last year Perullo underwent a double mastectomy after But as we have seen numerous times before, we doctors found she had stage-two breast cancer and testing will be stronger and more resilient because of this. showed she had a mutation in the BRCA-2 gene that puts In the days after Superstorm Sandy, confusion people at higher risk for several cancers. reigned about a pathway forward. The overwhelming “I’ve seen it go from nothing to something virtually over- devastation in 2012 crippled housing and com- Changing the landscape night,” Perullo said. “ at’s where my fear lies.” munities, which were washed away in a few hours e state Department of Health granted New York City overnight. While the effects could be felt years after hospitals permission to resume nonurgent surgeries June the storm, we are now far safer and much better 8—Long Island and Westchester facilities got the green light prepared to handle another natural disaster. in late May—but the busiest facilities have thousands of pro- We need to move forward with the same cau- up our doors, it will be in a reduced capacity,” she said. cedures to schedule. Perullo is working with her doctor to tious optimism and con dence in the wake of the Take the virtual tours and remote classes the garden of- nd a date for surgery. coronavirus pandemic. fers to schools. e $150 cost was cut to $60. Department of Hospitals had been able to perform medically necessary Despite what we’ve lost, no crisis should go Education grants are making up the di erence, said Annie surgeries with wide discretion as to which should be per- to waste. We need to rebuild safely and smartly Tan-Detchkov, the garden’s director of education. formed. at discretion was needed to avoid adverse e ects. and take advantage of the great opportunity to In addition, garden o cials are applying for a compost- A study from the Annals of Oncology, published online in reemerge as the community that we want to and ing grant to cover expenses at the farm they keep on their May, found evidence that modest delays in surgery could should be. 39-acre lot. signi cantly a ect a patient’s chance of survival. It noted the THE PERULLO The pandemic has uni ed us in ways few would But there are strings that come with new money sources. need for “rapid attention to any backlog already accrued. FAMILY have thought possible. In New York, for instance, Losing earned revenue means a loss of autonomy, said Hospitals were balancing performing surgeries with pre- competing health systems pulled together to share Susan Lacerte, the garden’s director. Grants and donations serving sta and supplies for Covid-19 care. Every patient resources and best practices, recognizing that we
usually come with obligations or are designated for certain undergoing and recovering from surgery would lead to the COURTESY OF THE PERULLO FAMILY have a shared responsibility to preserve the public’s programs, she explained, but with earned revenue, organi- higher use of protective equipment, which was in short sup- health. zations themselves decide how to spend the money. ply, and a need for an operating-room ventilator. e changes hospitals made to elective surgeries, “while The very best of humanity has been and contin- Manhattan’s Hospital for Special Surgery, known for its needed to respond to the Covid-19 pandemic, potentially ues to be demonstrated. Community support has Losses for everyone proli c knee, hip and other joint surgeries, said in late May threaten the nancial viability of hospitals, especially those showered our health care workers each night with a Even wealthier institutions, such as the Metropolitan that it had a backlog of about 7,000 patients. with preexisting nancial challenges and those heavily reli- deafening clap out. Organizations have offered food Museum of Art, are rethinking their business approaches. At the peak of the crisis, New York’s operating rooms were ant on revenue from outpatient and elective services,” the and supplies to those in need. There’s a newfound While the Met bene ts from the earnings of a $3 billion mostly dormant. HSS dropped to as low as 8% of its total op- authors wrote. commitment to our neighbors and families that endowment, 46% of the Met’s operating budget comes erating-room capacity during that period. It performed e federal Cares Act included $175 billion in funding for hasn’t been seen in years. from earned revenue sources, about 35,000 surgeries last year. hospitals and other facilities to o set the costs of caring for Covid-19 may have changed our perspectives, according to its most recent - Louis Shapiro, its CEO, said the orthopedic hospital creat- Covid-19 and losing revenue from postponing surgeries. But fears and desires. It certainly has in health care. nancial ling. e coronavirus ed a system for classifying elective surgeries in mid-March more funding targeted toward smaller and independent Speaking for Northwell Health, where we have cost the museum nearly $150 ahead of the executive order to halt procedures . hospitals may be needed as those facilities typically have treated more Covid-19 patients than any other million in lost revenue with After rst working to accept non-Covid-19 patients from less nancial liquidity. health care provider in the U.S., we have seen ex- ticket and retail sales, said Ken- other hospitals, HSS made the decision in April to admit Its unclear whether pent-up demand for treatment will ceptional unity among our staff and a shared sense neth Weine, a museum spokes- positive patients as well, converting its operating rooms into lead to higher revenue for health systems. of pride and commitment to a focused mission— man. intensive care units. Several city health systems despite the emotional trauma endured on the front Once the museum reopens, “ ese are patients who including Northwell Health lines. We have both suffered and bene ted from it Weine said, social distancing measures and a slump in were canceled for surgery “THE WORLD IS GOING TO BE and New York–Presbyterian, while knowing we will never again be the same. tourism will keep earned revenue down. back in March, and what may reported losses of more than Recognizing that our lives are changed forever is e pandemic has been “tremendously impactful,” he have been elective then is no QUITE DIFFERENT IN MEDICAL $120 million in the rst quar- an essential part of the recovery process. said. “We’ve never been closed longer than three days. longer elective because their ter of the year, as they spent Persistence and creativity are among the many We’re going on three months.” condition has deteriorated,” FACILITIES GOING FORWARD” more to prepare for Covid-19 important lessons we have learned during the pan- e Met is trying to nd ways to o set the decline in Shapiro said. “ ousands of while canceling procedures demic. Forced to respond to rapidly moving targets, tourism. e museum was once the No. 1 destination for patients we canceled months ago started to come back in the last two weeks of March. our innovative 3D-printing researchers and clinicians Chinese tourists, Weine said. Seventy- ve percent of its slowly.” Patients could continue to put o some less time-sensi- transformed more than 300 sleep apnea machines yearly visitors aren’t even from New York, he noted. As HSS opens up more of its operating rooms, the hospital tive procedures, especially as the number of New Yorkers into ventilators, avoiding a potential shortage. “We need to reintroduce the Met to New Yorkers,” he has needed to thoroughly disinfect areas that served as care with job-based insurance fell in recent months. The same ingenuity was shown by 3D print- said. sites for Covid-19 patients and replace the anesthesia ma- Northwell Health saw its surgery volume return in waves ing nasal swabs in response to an overwhelming chines, which had been converted into makeshift ventila- as its Long Island and Westchester hospitals received per- demand for Covid-19 diagnostic tests. To handle a Long-term recovery tors for critically ill patients. mission to schedule nonurgent procedures weeks ahead of huge surge in patient volume, we increased capacity Representatives of nearly a half-dozen museums who All patients must test negative for the virus ahead of their its city hospitals. in our hospitals by creating nearly 200 beds a day, spoke with Crain’s said reopening doors wouldn’t even be- operation. e health system worked to ensure it could accommo- eventually adding nearly 2,000 in 10 days. gin to overcome the hit to earned revenue. date social distancing in waiting areas, Michael Dowling, All of these incredible feats underscore what can “We’re expecting, and I think many museums are, that Finance factor CEO of Northwell, said. be accomplished during an emergency. we will probably be in the 20%-25% capacity zone for social e drop in surgeries also led to a nancial hit to hospitals “Recovery, as people call it, is in many ways more di cult distancing reasons alone,” said Adam Weinberg, the Whit- that rely on that revenue, particularly from orthopedic and than managing the crisis itself because we have to come Michael Dowling is president and CEO of Northwell ney’s director. cardiac procedures, to stay solvent. back in a di erent way and make sure when we bring back Health, New York’s largest health care system and Reopening won’t be about making money for quite some Elective hospital admissions can make up 30% or more of surgery and other procedures, we do it safely,” Dowling said. private employer. time, he said, adding that the museum could even lose a hospital’s revenue, according to an analysis by researchers “ e world is going to be quite di erent in every single med- money when it reopens to a smaller public. ■ at Weill Cornell Medicine in the medical journal JAMA. ical facility going forward.” ■
JUNE 29, 2020 | CRAIN’S NEW YORK BUSINESS | 19
P018_P019_CN_20200629.indd 19 6/25/20 5:58 PM NEXTNEW YORK EDUCATION VOICES HARNESS TECH FOR Pandemic reshapes how GOOD OF NEW YORK medical students learn Residents and fellows have been some of the greatest frontline heroes
WE HAVE A CHOICE IN NEW YORK. BY JENNIFER HENDERSON The past few months have shed even greater light on the r. Charles Brunicardi, senior vice drastic shortcomings and ineq- president and dean of the College of uities in our civic, economic and Medicine at SUNY Downstate Health social infrastructure. We now Sciences University, de nitely un- have the opportunity to choose Dderstood the need for his students to maintain between rebuilding our city and their education during the pandemic. BUCK ENNIS state using the same complex SUNY Downstate is the only academic medi- KEVIN RYAN patchwork of municipal and so- cal center that serves the 2.6 million residents cial processes that have existed of Brooklyn. Most of its patients are people of for decades, or we can reinvent the processes by color with underlying health conditions. building more collective accountability, embracing “ e Covid-19 pandemic has really had a tre- and inviting technology and a new class of entrepre- mendous adverse e ect on the underrepre- neurs to build a future together. sented population in Brooklyn,” Brunicardi In the past 15 years we have seen monumental said. “It opens the door for increased studies in innovation in New York’s private technology sector social determinants of health, disparities of in software, cloud computing, health care, data, health and genomic health in Brooklyn.” direct-to-consumer products and marketplaces, to New coursework will be part of the new nor- name a few. But despite these gains, we now need mal that SUNY Downstate is anxious to return more innovative work that connects the private sec- to. So will innovations in the way students tor to the public sector to serve residents better. learn. One way to put it: How much of the city’s 2021 budget proposal of $89.3B could we ultimately save Hybrid programs if we substituted longer-lasting solutions for interim In March medical schools were shut down as
payment planning and incremental savings? a result of the pandemic, and faculty and stu- SUNY DOWNSTATE/LINKEDIN The choice to harness technology in government dents transitioned to remote learning. Earlier infrastructure is the choice to signi cantly improve this month Gov. Andrew Cuomo said that medical and in-person sessions for the time being. ird- and the quality of human lives in the immediate term schools statewide could reopen June 22. fourth-year students will return to clinical rotations. and across critical areas, such as food access and SUNY Downstate has worked diligently to design hy- Telemedicine will need to be a signi cantly larger part distribution, criminal and social justice, health care brid programs combining virtual sessions with in-person of the curriculum, he said. and immigration. learning. Later this year students will start clinical rota- However, the focus is not only on coursework. We have the opportunity to create a municipal tions again, including some—such as those in the inten- “ e other important reason that we want students to services network that doesn’t just offer services sive care unit—that will involve Covid-19 patients. be on campus [is that] we know that a huge part of what for services’ sake, but rather one that prioritizes e safety of SUNY Downstate’s 820 medical students students do is outside the curriculum,” Muller said. “ ey intelligence and connectivity, allowing one service has been the top priority in all of the changes, Brunicardi want to interact with the doctors in the emergency room, to inform the next—ultimately painting a more said. the operating room. ey want to nd role models and complete picture of each resident’s needs and how Because medical students don’t have the training to explore career opportunities.” best to ful ll them. care for patients during their Dr. Melvin Rosenfeld, se- We could start together in a few areas. four years of medical school, nior associate dean for medi- We could examine procurement processes and their redeployment has not “THE SKILLS THEY LEARN cal education at NYU Gross- centralization (touching the $20 billion of goods a been allowed anywhere man School of Medicine, said year from outside contractors) to see where tech- during the crisis, particularly DURING THIS TIME ARE ONES a phased return of students nology might unlock ef ciency. when weighed against the risk based on their year of study We could forge partnerships between smaller of their potential exposure. THEY’LL TAKE WITH THEM” has begun. companies and city and state governments to pro- However, residents and fel- “Parents have entrusted us vide key services to residents with greater ef cien- lows have been some of the with their children, and we cy. (Think Department of Motor Vehicles processes, greatest heroes of the pandemic. take that responsibility very seriously,” Rosenfeld said. jury duty administration, Medicare and Medicaid en- At SUNY Downstate, about 1,000 residents and fellows Vaccines will be one part of the existing curriculum, rollment, food stamps and unemployment bene ts.) across more than 50 programs were redeployed to emer- which will be expanded as a result of the pandemic, he We could together build new frontiers in edu- gency departments, ICUs and internal medicine oors to said. cation, an area where virtual classrooms make help ease some of the surge, said Dr. eresa Smith, di- ere also needs to be an even greater focus on study- technology an absolutely necessity. We could launch rector of graduate education. ing the factors that contribute to a person’s health, in- tech-focused job training programs, harnessing ough many residents and fellows are starting to re- cluding access to healthy food, he said. resources, talent and lessons from the technology turn to their regular departments as Covid-19 cases trend “It’s important that people understand why the social sector to help more New Yorkers access it. There is down, Smith refers to the coming weeks and months as a determinants of health a ect so many di erent things,” signi cant opportunity to increase the speed and pendulum. Rosenfeld said. “While it was part of our curriculum be- intentionality around partnerships among govern- “We need to anticipate another surge, whether that is fore, it will be made even more robust.” ment and private-sector technologists. when stay-at-home orders are rescinded or in October, Technology companies and new entrepreneurs when there could be another peak that coincides with Getting creative are ready and willing to help, and we have been for in uenza season,” Smith said. “We need to be able to go Leaders at SUNY Downstate concur that lessons a long time. But it will take an open-minded and back to full redeployment at any point in time.” learned during the pandemic will enhance students' skill committed reexamination of what is possible. It will Out of those 1,000 residents, 3% contracted the dis- sets. take implementing these public-private partner- ease, Smith said. She attributed the low infection rate to Residents and fellows have gotten creative to continue ships, relaxing red tape, and being honest with personal protective equipment and regular training. with their specialty studies. For example, the surgery ourselves about which processes and laws are truly Dr. David Muller, dean for medical education at the team was missing out on some of their procedures when needed to protect residents and which are antiquat- Icahn School of Medicine at Mount Sinai, said caring for everything started shutting down, Smith said. So they ed and intended only to protect an industry. Covid-19 patients has already become the new normal. went around the ICU and put in chest tubes and IVs. Providing true innovation to deeply seeded pub- “It is going to be part and parcel of the practice of med- ey did all the technical procedures they could. lic and social services necessitates that we think in icine forever,” Muller said. e anesthesiology team assisted when there was a a different way. The call to action could not be more One parallel to the current pandemic is the beginning shortage of respiratory specialists, she added. And the urgent. of the HIV/AIDS epidemic, he said. In the early days of orthopedics team helped ip patients onto their belly for that crisis, there was not much information, and it was better oxygenation and ventilation, which will be useful Kevin Ryan, an internet entrepreneur, co-founded terrifying. Now everyone wears gloves when drawing training for completing spinal surgeries down the line. AlleyCorp, MongoDB, Business Insider, GILT, Zola blood. And everyone will wear PPE when caring for “ e skills that they learn during this time are phe- and Nomad Health, among several other companies. Covid-19 patients going forward. nomenal and [ones] they will take with them in their fu- Muller said medical students are slated to return to ture careers,” Smith said. “ ey're going to be leaders in campus, and coursework will involve a mix of remote their eld.” ■
20 | CRAIN’S NEW YORK BUSINESS | JUNE 29, 2020
P020_CN_20200629.indd 20 6/25/20 6:08 PM SPONSORED CONTENT Local bank comes through for small businesses and community during COVID-19 crisis
hen the coronavirus pandemic hit, Jaye Fox, “Flushing Bank’s PPP team led us through the process with W Director of Development tremendous care, attention, and professionalism. We cannot at Bronx Pro Group, was met with the imagine having done it with any of our other lenders.” stark reality that every small business –David Weinman, President, Fabco Enterprises, Inc. was facing: the possibility of having to lay o employees. Bronx Pro Group’s loan was just one of on traditional loans, including lines of 343 PPP loans secured by Flushing Bank, credit and mortgages. Additionally, Although, for Jaye, she knew the impact for a total of $91,766,000 in PPP loans at a time when the health and safety of layos would aect more than the and counting. In fact, to date, Flushing of the community were never more employees of Bronx Pro Group and Bank has successfully funded every vital, Flushing Bank launched a line their families. As developers, builders, PPP loan application, including those of of robust digital services. This digital and managers of aordable housing, customers and non-customers. Across transformation allowed customers to furloughing their employees would industries and during the most trying of easily bank from the comfort and safety mean ceasing a vital mission that would times, small businesses have once again of their homes, any time of day. have a lasting aect on the communities realized the benefit of working with a they serve. local, community bank.
To retain their sta and continue to build quality, aordable housing, Bronx “Through this crisis, I’ve heard from other small business colleagues Pro Group needed to secure a PPP loan. and it’s clear that we’ve been treated exceptionally well compared to their experiences with other larger national banks. Flushing Bank RESPONSIVENESS AND PERSONALIZED has been understanding, flexible, communicative, and helped us SUPPORT WERE KEY. move quickly, securing both bank support to our existing loans and relief funds via government interventions.” Seeking immediate financial assistance, Bronx Pro Group simultaneously reached –Matthew Viragh, Founder/Executive Director, Nitehawk Cinema out to three banks — Flushing Bank, as well as two other banks, including a larger SMALL ENOUGH TO KNOW YOU. Beyond financial services, Flushing Bank one. With unprecedented numbers LARGE ENOUGH TO HELP YOU. reached out to their community during applying for PPP loans, Flushing Bank the crisis and sent much-needed food worked closely with Bronx Pro Group In the midst of the pandemic, when many donations to frontline healthcare workers. to understand their needs and quickly midsize and large banks fell short serving secured their PPP loan. customers, Flushing Bank upheld their With more than 90 years of service, ■ community-based approach of “Small Flushing Bank has helped business Jaye Fox said, “Flushing Bank was the enough to know you. Large enough to owners, families, and communities only one of the three banks that was help you.” Beyond PPP loans, their day- grow and prosper. These challenging able to answer our questions about the to-day services and commitment to the times have only strengthened their PPP from the informed perspective of an neighborhood proved ever important to commitment to customers and the experienced SBA 7a lender. Their team individuals and families. community as a whole. With branches was communicative, knowledgeable, in Queens, Brooklyn, Manhattan, and on and responsive throughout the process, ■ Through appointment banking, customers Long Island, Flushing Bank is ready to and we are certain this is responsible for met with branch members, as needed, answer questions, serve customers, and the success of our SBA application.” in which they continued to open new oer the peace of mind that comes from deposit accounts, as well as close partnering with a neighborhood bank.
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FBCN019764.indd 1096_ PPPLoan&More_Advertorial_Crains_10.875x14.5.indd 1 2 6/23/206/16/20 11:20 2:35 PMAM NEXTNEW YORK
Second Avenue by BAR KOGI bustled even before Phase 2 began. BUCK ENNIS RESTAURANTS Bringing restaurants to the great outdoors Sidewalks and streets are breathing life into the city’s restaurant scene
BY RYAN DEFFENBAUGH were permitted to o er sidewalk dining, with most of these Bellard said. “We could expand into the street to regain not establishments located in Manhattan. e mayor’s o ce only what our patio is losing in capacity, but the indoor s the city’s 27,000 restaurants seek to reopen, estimates that the total will rise to 5,000 due to the push for seating we lost as well.” they’re keeping a close and hopeful eye on what outdoor dining. business they can bring back through outdoor What won’t come back seating. Sidewalk café limits Michael Dorf, owner of City Winery, said the company’s ARestaurants have responded quickly to Phase 2 of Gov. Restaurant owners note that sidewalk cafés are only a Vineyard location at Pier 26 has expanded seating into Andrew Cuomo’s economic reopening plan. Tables spilled small part of the solution, because they o er limited space. Hudson River Park. But it will be a long time before the onto parking lots and sidewalks on June 22, serving cus- Restaurants are typically allowed up to 4.5 feet o their company’s hallmark—live entertainment—can return, tomers outdoors in spaces 6 feet apart and requiring din- storefronts to set up tables, but they need to leave at least 8 given a prohibition until a later phase of the state’s reopen- ers to wear masks when they are not seated. feet of sidewalk clear. ing. Further hope rests on Mayor Bill de Blasio’s plan for a ose guidelines seem feasible in places like Midtown. “We are desperate,” Dorf said. “We are desperate to “massive” expansion of outdoor dining, allowing restau- But it is less workable in the outer boroughs and in resi- serve, start making money again and bring our sta back to rants to open cafés on sidewalks, closed-o streets, parks dential neighborhoods. w o r k .” and parking lots with a self-certi ed permit process. at Each of the 5 Napkin Burger locations in the city has a Restaurants outside of residential areas also need a re- includes a pledge to close o 100 miles of streets to cars sidewalk café of about 30 seats, compared with 100 inside. turn of o ce workers to bring back happy hour and lunch and open up space for New Yorkers during the pandemic. e business will need to maximize the capacity of that business. Adoro Lei, an Italian restaurant in Hudson Previously, these outdoor options were often too costly Square, can set up about 20 seats outside. But lling those and bureaucratic for restaurants to pursue. tables is dependent on the return-to-work plan from busi- “People are going to be out and about, and businesses “WE ARE DESPERATE TO SERVE, nesses that are expanding locally, such as Google and Dis- need to start generating income,” said Andrew Rigie, exec- ney. According to a survey from the Partnership for New utive director of the New York City Hospitality Alliance. START MAKING MONEY ... AND York City, businesses expect just 30% of their employees to “We need to recognize that reality and build a system for return to the o ce by the end of the year. restaurants to open outdoors.” BRING OUR STAFF BACK.” “Our busiest days are Wednesday, ursday and Friday, from six to midnight,” said Michael DiBugnara, a restau- Costs and bureaucracy outdoor area within the state’s guidelines. rant partner. “So we are hopeful that a lot of people will be Restaurant owners seem happy to comply with mea- “We are looking at 5-foot barriers between tables to see if coming back.” sures that bring back some of the nearly 145,000 New York- there is a solution there to get seats closer together,” said ers who work for their establishments. e New York City Robert Guarino, CEO of 5 Napkin Burger. “If that is safe and Lost time Hospitality Alliance estimated that 67,000 restaurant work- feasible, we would love to get as many seats as possible.” e best weather for outdoor dining may have already ers lost jobs within the rst weeks of the pandemic. At E’s Bar on the Upper West Side, owner Erin Bellard has passed. Serge Becker, who operates several city restau- Almost all restaurants surveyed in May by the not-for- set out about 20 seats each summer for the past eight years, rants, said he still would like to put tables outside in a park- pro t association said they are unable to pay their rent. A part of an outdoor dining scene along Amsterdam Avenue. ing lot near Miss Lily’s 7A Café in the East Village—even if majority of restaurant owners do not think their business She is now able to serve those seats again, but is hoping to it won’t make up for the lost business indoors. can survive with indoor capacity capped—as will be re- get more space on the street to make up for the decreased “Hopefully we can just break even or whatever it is,” quired in a coming phase of the reopening. capacity required for social distancing. Becker said. “It is not the business perspective, but more To make up the di erence, outdoor seating will be cru- “ ere have been talks about shutting down streets in just the spirit—we need to get some life back, get some en- cial. Before the pandemic, fewer than 2,000 restaurants restaurant-heavy avenues, and that would be amazing,” ergy back.” ■
22 | CRAIN’S NEW YORK BUSINESS | JUNE 29, 2020
P022_CN_20200629.indd 22 6/25/20 6:10 PM New York City’s meetings and events industry prepares for a comeback
When Covid-19 struck, many live events in procedures in place to prevent the spread Shackman, founder of Shackman Associates, a for virtual events through the end of 2020, as New York City got cancelled or postponed. of the coronavirus. It is incorporating destination management company based in we await a vaccine for the coronavirus. In the masks, social distancing, contactless Manhattan. meantime, she is seeing a lot of innovation as Now, with the city reopening gradually, some check-ins, temperature checking, GBAC clients embrace technologies such as Zoom. meeting organizers are transitioning back into Star certification and additional sanitizing Shackman is expecting a significant demand “I’m seeing more clients take the leap and do holding live events at city venues, while others into events held at the venue. for venues in the New York City area. “For more digital and get really creative,” she said. are innovating in the area of virtual events and destination corporate-incentive bookings, this live-virtual hybrids. “We’ve been very proactive with safety is the time to be planning for 2021, because For one client recently, she arranged a cooking guidelines,” said Rothstein Berman. “At the once things really open up and meetings are experience, run by a celebrity chef, and a “People crave people and they want to be end of the day, it’s going to come down to perceived as safe for the health of attendees, mixology class. “We’re really trying to focus together,” said Jessica Rothstein Berman, a what people are comfortable with.” the backlog will make it certified meeting planner and vice president of almost impossible to book “WE HAVE A NUMBER OF EVENTS sales and marketing for the Manhattan Center, For some clients planning live events, the anything at the last minute,” an events, performance and production space Manhattan Center has been using its on-site she said. BOOKED FOR THE FALL. THEY’RE in New York City. broadcast facility to add a virtual component. STILL PLANNING ON MOVING Some, for instance, are holding live town halls Event planner Alicia Schiro, Although the events world has not yet returned where key stakeholders attend in person, but founder and CEO of ACED IT FORWARD. ARE THEY GOING TO DO to its pre-Covid pace, Rothstein Berman has there is also a virtual component, so attendees Events in Manhattan, predicts IT DIFFERENTLY? ABSOLUTELY.” found that a growing number of clients are may participate remotely if they wish. This has that many clients will gravitate eager to bring people together under one roof been helpful for nonprofit clients who rely on to larger spaces that allow for Jessica Rothstein Berman, vice president of sales and in the near future—with some modifications. their events for fundraising and now have to social distancing, once they’re marketing for the Manhattan Center meet their annual financial goals with a ready to go back to live events. “We have a number of events booked for the smaller number of attendees. on local restaurants and supporting those fall,” said Rothstein Berman. “They’re still “The largest spaces are probably going to be businesses,” she said. planning on moving forward. Are they going “We’re equipped to do that as a turnkey the busiest they’ve ever been,” said Schiro. to do it differently? Absolutely.” solution,” said Rothstein Berman. “Typically, when you have 100 people, you These efforts are becoming more advanced, would not want a space for 5,000. In the past, with some productions toggling between a With health and safety top of mind, the Other players in the meetings and events it would never make sense. Now it makes total livestream, a video and slides. To ensure the Manhattan Center has been putting enhanced space are also prepared for a resurgence of live sense. You can spread out.” meeting quality is as good as possible, Schiro events. “We would expect localized events to has been engaging an audiovisual company to make a comeback in the short-term, especially Schiro said that most of her clients, who are ship recording equipment to celebrity chefs. if they can be held outdoors,” said Karen concentrated in the tech industry, are opting “We’re getting more sophisticated,” she said.
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BY GERALD SCHIFMAN
FIRST PHASE OF SECOND PHASE OF FEDERAL RESPONSE FEDERAL RESPONSE THIRD PHASE OF The federal government The second federal bill, the $104 FEDERAL RESPONSE passes its rst bill to ght billion Families First Coronavirus The $2 trillion Coronavirus the pandemic: an $8.3 billion Response Act, is enacted into law. Aid, Relief and Economic deal to fund research and The legislation includes sick-leave Security Act is signed into development for vaccines, provisions and unemployment federal law. As part of the therapeutics and diagnostics. bene ts. legislation, the $669 billion Paycheck Protection Pro- gram is established to fund small-business loans.
NEW ROCHELLE CONTAINMENT ZONE As New Rochelle becomes the temporary epi- center of the virus in the U.S., the governor HOSPITAL EXPANSION announces that a containment zone will be created in the Westchester city from March 12 The governor mandates that hospitals through March 25. expand capacity by at least 50%. With approximately 50,000 hospital beds in the state, the measure would have covered only a portion of the 140,000 beds projected to be needed.
FIRST CORONAVIRUS CASE New York reports its rst con rmed Covid-19 case: a Manhattan-based health care worker.
3/1 3/3 3/6 3/7 3/10 3/13 3/18 3/22 3/23 3/27 3/30
LIFE ON HOLD COMFORT ARRIVES SECOND Cuomo’s New York State on Pause policy CORONAVIRUS CASE The 1,000-bed USNS Comfort ar- goes into effect, requiring all nonessen- rives in the city to help alleviate The state reports its second tial businesses to close and banning all STATE OF EMERGENCY DECLARED the strain on hospitals. While orig- coronavirus case: a New nonessential gatherings. Despite being inally planned to treat noncorona- Rochelle lawyer who works near With the state’s caseload shuttered, the city goes on to become the virus patients, the Navy hospital Grand Central Terminal. building, Gov. Andrew epicenter of the world pandemic. Cuomo declares a ship is recon gured to begin ac- state of emergency cepting virus-infected individuals as part of an effort in a special ward a week later. to contain the spread of the virus.
TESTING PERMISSION GRANTED The Food and Drug Administration grants STOCK MARKET HITS NADIR approval to public and private labs to screen for Covid-19, allowing the state to ramp up testing. The Dow Jones Industrial Average bottoms out at 18,592, a drop of more than 10,000 points from its February high.
24 | CRAIN’S NEW YORK BUSINESS | JUNE 29, 2020
P024_P025_CN_20200629.indd 24 6/25/20 6:14 PM Tracing New York’s journey through the pandemic CASELOAD HITS 100,000 REOPENING BEGINS The city eclipses 100,000 Covid-19 diagno- Phase one of the city’s reopening commences, ses, a 53% increase from one week earlier. thanks to the implementation of a tracing pro- COMFORT LEAVES gram and diminished caseloads and hospitaliza- tions. Construction, retail and elective surgeries With the worst of the virus’ rst wave behind are among the business activities that resume. New York, the USNS Comfort leaves Pier 90 on THIRD PHASE OF the West Side. Fewer than 200 patients were FEDERAL RESPONSE treated on the vessel. The $2 trillion Coronavirus Aid, Relief and Economic Security Act is signed into federal law. As part of the legislation, the $669 billion Paycheck Protection Pro- gram is established to fund small-business loans.
STATE BUDGET APPROVED TESTING BOOM Cuomo and state As its testing capacity continues to expand, legislators the city performs 34,232 examinations for agree to a Covid-19, a 62% jump from one week earlier. $177 billion REGIONAL STRENGTH budget plan for the coming Amid pressure to reopen scal year. The the economy, New York joins budget includes a projected Northeastern states to create tax-revenue loss of $10 billion a regional reopening plan. as a result of the virus and shutdown.
3/30 4/2 4/11 4/12 4/13 4/24 4/30 5/6 5/27 6/8 6/22
COMFORT ARRIVES MTA SANITATION The 1,000-bed USNS Comfort ar- HOSPITALIZATION PEAK In a historic move for its 24/7 subway system, rives in the city to help alleviate The state reaches the city begins to halt service from 1 to 5 a.m. the strain on hospitals. While orig- nightly for cars to be disinfected. THE NEXT PHASE inally planned to treat noncorona- 18,825 hospitaliza- The city enters its second virus patients, the Navy hospital tions—the eventual apex phase of reopening. ship is recon gured to begin ac- of the pandemic’s rst Thousands of companies cepting virus-infected individuals wave and signi cantly are permitted to welcome in a special ward a week later. less than worst-case projections. back employees to of ces provided that social-distancing guidelines are followed.
DEATH TOTALS START TO FALL There are 735 con rmed and probable deaths from Covid-19 in the city. After this, daily fatal- ity counts drop as containment measures prove effective. More STOCK MARKET HITS NADIR than 20,000 city residents even- The Dow Jones Industrial Average bottoms out at 18,592, tually will be lost to the disease. PPP EXTENDED a drop of more than 10,000 points from its February high. The federal government authorizes a $484 billion bill to extend the Paycheck Protec- JAVITS CENTER REPURPOSED tion Program and provide more funds for CASELOAD HITS 200,000 hospitals and tests. The Javits Center, which had been transformed Although the spread of the from a convention hall into a hospital over ow virus has slowed signi cant- facility, is approved to treat Covid-19 patients. ly, the city eclipses 200,000 Covid-19 diagnoses. BUCK ENNIS, GETTY IMAGES, ISTOCK, GOVERNORANDREWCUOMO/ FLICKR GOVERNORANDREWCUOMO/ ISTOCK, GETTY IMAGES, BUCK ENNIS,
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P024_P025_CN_20200629.indd 25 6/24/20 5:12 PM NEXTNEW YORK
Crain’s asked readers what they were thankful for and what they learned about Gratitude List themselves and others during the lockdown. Here’s some of what they said.
I am grateful to the scores of my college students who checked in on me regularly during the lockdown, not just with well wishes but with genuine offers of assistance to me and to their classmates or families needing help. There is a lot of talk about how today’s college ‘kids’ don’t measure up to previous generations—I’ve been guilty of such grumblings once or twice myself out of frustration—but witnessing how 99.9% of my students handled the massive disruption to their studies and their lives, and how quickly they adapted, gives me great hope for better, brighter days ahead.” — Marco DeSena, lecturer, Baruch College, City University of New York
I’m in recovery for over 33 years, and the topic “I AM A SENIOR WHO LIVES ALONE. I AM GRATEFUL FOR MY LITTLE “GRATEFUL FOR THE of gratitude is certainly my favorite. From the TORTOISE, WHOM I CAN HOLD KINDNESS OF A time I entered recovery, it was always important for me AND CARE FOR AND WHOSE ANTICS to have a gratitude list. My list always begins with: ‘I’m ENTERTAIN ME. HE GIVES ME NEIGHBOR WHO grateful to be alive. I’m grateful to be clean and sober. COMPANIONSHIP AND A CHANCE DELIVERED AND LEFT And I’m grateful for my family, my friends, my career TO TOUCH A LIVING BEING FRESH EGGS FROM and my music.’ ” — Peter N. WITHOUT FEAR OF GETTING SICK.” — Leona HER HENS.” — Fran Gardner
I have more respect and admiration for my autistic son, Matthew. My I have been grateful for the husband and I have had the gift of time to connect I am grateful for my health. I did not catch the coronavi- with family and friends (virtually task of teaching him about our rus, but I had some serious medical needs in the last and by telephone). I set up happy- world and the best ways to ve months. NYU Langone Medical Center closed surgeries just before I was to have a stone removed from my kidney. I also had hour dates with friends and col- communicate, understand and problems with my feet. Langone literally protected me from getting leagues that I had not spoken to in participate in all our daily the virus. They made numerous exceptions to see me in off-hours. several years. I am grateful for the activities. I always knew that And yesterday, after several months, the procedure was complete, time to take two courses online, one he worked hard, but I never bringing an end to all of this. I saw in action our rst responders pay o ered by Yale and another by Johns attention to those in our community.” really understood the fortitude — Barre Flynn, business manager, Onyx Healthcare Solutions Hopkins. I am grateful for the time to read and to meditate and exercise and patience he devotes to daily. I have been conscious about being a part of ‘our world.’ He During Covid-19, I have—like most people—been using this time constructively as I is an inspiration!” — Claudia working from home. Every day I spend an hour am not sure when I will have two either jogging or bicycling around my town, Greenburgh, and a half months o from work New York. I have cycled or biked on streets that I again.” — Michele August never appreciated before. I enjoy the landscaping, trees, owers, architecture and beauty of the community more than I ever did. I even appreciate the deer and wildlife I encounter. I look forward to my daily hour of cycling- “I AM THANKFUL FOR EVERY “I AM GRATEFUL THAT WHEN jogging, and after three months I keep looking for new NEW YORKER WHO STAYED ALL streets to explore.” — Paul Feiner, Greenburgh town supervisor THE WAY THROUGH THIS CRISIS, I ASKED PEOPLE VIA SOCIAL SUPPORTING LOCAL MERCHANTS AND MEDIA TO SEND PUZZLES AND KEEPING A CORE COMMUNITY ALIVE IN WORD GAMES TO OUR HOMEBOUND OUR NEIGHBORHOODS. WHETHER YOU’VE TENANTS, I HAD BOXES IN MY I am grateful that University Settlement’s adult literacy BEEN IN THE CITY YOUR WHOLE LIFE OR program stepped up quickly to move our English as a JUST GOT HERE, IF YOU STAYED, YOU NOW OFFICE THE NEXT DAY. I AM Second Language students from the physical classroom to the HAVE THE ‘REAL NEW YORKER 2020’ GRATEFUL FOR THEIR KINDNESS IN virtual classroom. In addition, recognizing the added work that BADGE, AND NO ONE WILL EVER DOUBT THE TIME OF QUARANTINE.” would be involved, they increased our pay hours slightly. I am grateful YOUR LOVE OF THIS CITY.” — Wilson Kimball, president and CEO, that my class of low-intermediate students have stayed the course, — Nicholas Colas Yonkers’ Municipal Housing Authority despite losing their jobs and having to deal with homeschooling their children.” — Lynne Hayden-Findlay
I am grateful for the Visions staff, that they trust enough to share their feelings honestly about systemic racism, the senseless murder of Black people and the deep hurt and despair over the lives lost from Covid-19 of so many people of color. [We have] a diverse staff representing people of color, people with disabilities and LGBTQ people, [and] we live in a world lled with discrimination. I am grateful that we can work together to create a better, fairer and safer world.” — Nancy D. Miller, executive director and CEO, Visions/Services for the Blind and Visually Impaired
26 | CRAIN’S NEW YORK BUSINESS | JUNE 29, 2020
P026_CN_20200629.indd 26 6/26/20 2:49 PM SPONSORED CONTENT
Job sites and workplaces of the future with Lehrer Cumming
s New York City continues Phase 1 of reopening, the design, construction and development industries are mapping out how the future workplace will look and how Abuildings, regardless of their age, will need to change. To gather greater insight, Crain’s Content Studio spoke with Gavin Middleton, chief operating of cer at Lehrer Cumming, which advises owners planning or already involved in large-scale construction projects. It focuses on new building construction, major adaptive reuse and complex developments. Middleton is a design and construction executive with 25 years’ experience in North America, the Caribbean and Europe. His expertise is in managing logistically complex mixed-use programs from inception to nal delivery and closeout.
Lehrer Cumming has 120 team members across ve of ces, working on behalf of clients undertaking more than $25 billion worth of construction in the academic, cultural, commercial, residential and health care elds, as well as in the hospitality, retail and infrastructure sectors. It is a division of Cumming, a global project management and cost-consulting company.
CRAIN’S: Projects that protocols and wellness checks targeted to be as were shut down or slowed are being diligently enforced hands-free as possible. in the spring are now open on all the jobs I have visited. We have numerous projects Gavin Middleton, chief operating of cer at Lehrer Cumming again. How have the initial New York City has responded that are in the process of days of reopening gone so positively, and there is a upgrading entry doors, proposition for owners who and shop environments. The far? strong back-to-work push security check-in screening, can advance work during this mechanical, electrical and across job sites. elevator operation, security period of uncertainty. plumbing trades are showing GAVIN MIDDLETON: I think turnstiles and card readers. great creativity in this regard, all of us who participate in One thing we are learning New technology that uses We also will continue to see and while the off-site shift New York construction have here is that there is no facial recognition is being the consistent advancement was already underway before been both encouraged and one-size- ts-all solution: installed to help cut of additional prefabrication the Covid-19 pandemic, it will heartened by what we have Each construction site or additional contamination for many components of only accelerate, given today’s seen in these rst few days work environment is affected possibilities and touchpoints. the job off-site, in factory unique circumstances. back. The trades have shown very differently, depending Bathrooms are being a deep desire to return to on the logistics of the job, overhauled, especially in work and abide by the new and all participants need to older buildings, throughout return-to-work plans that continue to work together the city. Fixtures, bathroom have been put in place to nd unique solutions. stalls, soap dispensers, entry by general contractors. While there is a natural and doors and hand-drying areas Construction managers understandable wariness to are being modernized to have been responsive to resuming work during a become hands-free. TRUSTED the guidelines provided by pandemic, New York City’s CRAIN’S: Given the current “WE ARE ENCOURAGED BY THE DAILY nancial uncertainties, ADVISORS what should owners be ADVISORS NUMBER OF TRADESPEOPLE BACK thinking about if they are OWNER ADVISORY, COST CONSULTING AT WORK AND PERFORMING AT HIGH contemplating construction OWNER ADVISORY, COST CONSULTING projects? AND PROJECT MANAGEMENT SERVICES PRODUCTIVITY LEVELS.” MIDDLETON: If construction state and city agencies and construction and development slows, there will be enormous INQUIRE NOW have carefully considered industries have stepped up opportunities to secure better what a safe and ef cient work across the board to deliver pricing. Quality subcontractors environment should look job-site environments that in most key trades are like for this return. The high make workers feel con dent looking for a 2021 backlog level of energy has been returning to work. and beyond, so owners will very noticeable on the job have opportunities to sites I have visited during CRAIN’S: What changes assemble top-tier teams for the past few days, and we need to be made to their projects. We also are are encouraged by the daily buildings in the city to seeing a growing interest number of tradespeople back make traditional high-touch at all levels of the general at work and performing at areas in of ce environments contracting community for high productivity levels even safer for employees? new projects. Key executives, as they learn an adapted superintendents and project way of working. The MIDDLETON: Concern managers are going to be numerous initiatives, around high-touch areas available on the general including staggered starts and communal of ce items contractor-construction in the morning, have greatly are a huge talking point in manager side of the industry, improved the safe vertical the industry on a national and these highly regarded movement of workers and level, not just here. Lobbies, teams consistently deliver VALUE. INTEGRITY. RESULTS. materials on our high-rise bathrooms, of ce kitchens successful projects, which projects. Additional hygiene and elevators are being present a real value NEXTNEW YORK
Scenes from the pandemic Photographs by Buck Ennis
28 | CRAIN’S NEW YORK BUSINESS | JUNE 29, 2020
P028_P029_CN_20200629.indd 28 6/25/20 6:31 PM GETTY IMAGES GETTY IMAGES
JUNE 29, 2020 | CRAIN’S NEW YORK BUSINESS | 29
P028_P029_CN_20200629.indd 29 6/26/20 2:47 PM Advertising Section PEOPLE ON THE MOVE To place your listing, visit crainsnewyork.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / [email protected]
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P030_CN_20200629.indd 30 6/26/20 10:03 AM Advertising Section
To place a classified ad, Call 212-210-0189 CLASSIFIEDS To place a classified ad, Call 212-210-0189 or Email: [email protected] or Email: [email protected] PUBLIC & LEGAL TELECOMMUNICATIONS POSITION AVAILABLE POSITION AVAILABLE FORECLOSURE NOTICES Notice of Qualification of CITIPACE Data Engineer (Citadel Americas Quantitative Associate (Citadel Secu- SUPPLEMENTAL SUMMONS IN TAX HOLDINGS LLC Appl. for Auth. filed LLC – New York, NY) Crdinat the rities Americas LLC – New York, NY) LIEN FORECLOSURE–SUPREME with Secy. of State of NY (SSNY) on dsgn, dvlpmnt & maintnnc of cmplx 3DUWLFLSDWHLQGYOS·JVWUDWJVEOG·JWUG·J COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK – 05/14/20. Office location: NY Coun- data ingstn prcsses & data prdcts that SDUWQHUVKLSV LGQWI\·JEXVH[SQVQ ty. LLC formed in Delaware (DE) on NYCTL 2018-A TRUST, and THE BANK assist in the invstmnt rsrch prcss. F/T. RSSUWQWVIRUÀUP·VHTW\ RSWQVPNW 12/14/18. SSNY designated as OF NEW YORK MELLON as Collateral 5HTV0VWU·VGHJ RUIUJQHTYOQW LQ PDN·JEXV)75HTV0VWU·VGHJ RUIUJQ agent of LLC upon whom process • NATIONWIDE COVERAGE Agent and Custodian for the NYCTL CompSci, Eng, Physics, Math, Stat, HTYOQW LQ6WDW2SV5VUFK)LQDQ(QJ against it may be served. SSNY shall 2018-A Trust, Plaintiffs, TAHIR, et. al., • LIGHTWEIGHT (5.86 oz) (FRQRUUHOÁG(GXWUDLQ·JRUH[S 0DWK%XV$GPLQRUUHOÁG \UVH[S mail process to the LLC, c/o Pinta Defendants. Index No. 153231/19. To PVWLQFOÁOZ·J VIWZUHQJ SUIUP·JGDWD LQMRERIIUGRUZUN·JDWÀQDQFOLQVWL- Capital Partners, 485 Madison Ave. • LOCATION REPORTING the above named Defendants –YOU PLQ·J WUQVIUPWQDVZHOODV:HEGDWD WXWQ0XVWKDYH\UVH[SLQWKHÁOZ·J #202, NY, NY 10022. DE addr. of ARE HEREBY SUMMONED to answer H[WUFWQ V\VWGVJQLQFOWUQVOW·JEXVUHTV LLC: Corporation Service Co., 251 Lit- • LOW MONTHLY RATES ZUN·JZVHFXUWVWUG·JIUPVLQFOHOFWUQF the complaint in this action within twenty tle Falls Dr., Wilmington, DE 19808. LQWRV\VWIQFWQOLWV EOG·JFOHDUXVULQ- FRPPQFWQQWZUNV (&1V GUNSRROV days after the service of this summons, Cert. of Form. filed with DE Secy. of • CALL FOR FREE DEMO WUIDFV SUJUP·JLQ3\WKRQ GDWDVWUFWUV H[FKQJV ÀQDQFODQDO\VLVRIPNWGDWD exclusive of the day of service or within State, Div. of Corps., PO Box 898, Do- DOJUWKPV FRPSDUFKWFWU ELJGDWD Z3\WKRQNGET 64/ FUHDW·JGDWD thirty days after service is completed if ver, DE 19903. Purpose: Any lawful SUFVV·J FORXGWHFKLQFO6SDUN+D- GVKEUGV USUWV FRPPQFW·JFPSO[ activity. the summons is not personally delivered GRRS $:66 GDWDEDVHGYOSPQW GDWDDQDO\VHVLQEXVWHUPVWRLQÁXHQFH to you within the State of New York. In LQ0664/6HUYHU+39HUWLFD Notice of Formation of HEADY CREEK, 250 West 40th Street VUPJPWGHFLVQPN·J([SPD\EH case of your failure to appear or answer, LLC Arts. of Org. filed with Secy. of 6QRZÁDNHRU0RQJR'%5HVXPHV New York, NY 10018 JDLQHGFRQFUUQWO\5HVXPHV &LWDGHO judgment will be taken against you by State of NY (SSNY) on 05/21/20. Of- &LWDGHO$PHULFDV//&$WWQ (5/( 6HFXULWLHV$PHULFDV//&$WWQ (5/( default for the relief demanded in the fice location: NY County. Princ. office 212-532-7400 6'HDUERUQ6WQG)O&KLFDJR 6'HDUERUQ6WQG)O&KLFDJR,/ complaint. Plaintiffs designate New of LLC: 182 E 75th St., NY, NY www.metrocomradio.com ,/-RE,' -RE,' York County as the place of trial. Venue 10021. SSNY designated as agent of LLC upon whom process against it is based upon the county in which the may be served. SSNY shall mail proc- property a lien upon which is being ess to Corporation Service Co., 80 PUBLIC & LEGAL NOTICES foreclosed is situated. The forego- State St., Albany, NY 12207-2543. ing summons is served upon you by publication pursuant to an order of the Purpose: Any lawful activity. Notice of Formation of PAB Special, Notice of Formation of JDB Special, Notice of Formation of MBB Holdings, Hon. Lucy Billings, J.S.C., entered on LLC. Arts. of Org. filed with Secy. of LLC. Arts. of Org. filed with Secy. of LLC. Arts. of Org. filed with Secy. of FOREX NURSERY LLC, Arts. of Org. February 27, 2020. The object of this ac- filed with the SSNY on 04/20/2020. State of NY (SSNY) on 11/18/19. State of NY (SSNY) on 11/18/19. State of NY (SSNY) on 04/17/20. tion is to foreclose a tax lien covering the Office loc: NY County. SSNY has been Office location: NY County. SSNY Office location: NY County. SSNY Office location: NY County. SSNY premises located at Block 1010 Lot 1637 designated as agent upon whom proc- designated as agent of LLC upon designated as agent of LLC upon designated as agent of LLC upon ess against the LLC may be served. whom process against it may be whom process against it may be whom process against it may be on the Tax Map of New York County and SSNY shall mail process to: Corpo- served. SSNY shall mail process to: served. SSNY shall mail process to: served. SSNY shall mail process to: is also known as 157 West 57th Street, rate Filings of NY, 90 State St., Ste the Company, 163 W. 74th St., NY, the Company, 163 W. 74th St., NY, 400 E. 56th St., Apt. 11L, NY, NY Unit 46B, New York, New York. 700, Office 40, Albany, NY 12207. NY 10023. Purpose: any lawful activ- NY 10023. Purpose: any lawful 10022. Purpose: any lawful activi- Dated: February 27, 2020 Purpose: Any Lawful Purpose. ities. activities. ties.
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