Meet NY's Wobbliest Banks

CNYB 03-02-09 A 1 2/27/2009 9:17 PM Page 1

INSIDE Still TOP STORIES making news Restaurants grow —Valerie Block as better locations on 60 Minutes’ success open up, rents fall ® Page 11 PAGE 2 Nonprofits queue for share of fed’s VOL. XXV, NO. 9 WWW.CRAINSNEWYORK.COM MARCH 2-8, 2009 PRICE: $3.00 stimulus funds PAGE 2 When your star Meet NY’s wobbliest banks name leaves: Dud investments take toll on Park Ave. Bank, Quadrangle after UM, NOT GOOD $20M Rattner PAGE 3 even parts of Milstein family’s Emigrant Bank I Nonperforming assets $30M I Total equity plus SPECIAL REPORT porary American works, all to help loan-loan reserves BY AARON ELSTEIN distinguish the bank from the com- $19M $15M petitors who line the street.Thanks in $7M for those who like to withdraw cash part to its marketing effort, Park Av- $1M or deposit checks in the presence of enue Bank’s assets quintupled after CITIZENS EMIGRANT SAVINGS BANK fine art,Park Avenue Bank is the place new management took over in 2004 COMMUNITY BANK LONG ISLAND PARK AVENUE BANK to go. A midtown branch serves as a and reached $500 million last year. THESE THREE LOCAL BANKS have soured assets overwhelming their mini-gallery, displaying everything Unfortunately, little else has gone equity and reserves, according to one recent banking benchmark. from Old Master portraits to contem- See NYC’S WORST BANKS on Page 9 Source: SNL Financial

NYC TOURISM In Albany, RELAX! EVERYTHING IS ON SALE Silver’s Slogans to rebrand New York in the recession PAGE 13 good G Big Apple image problem: Some visitors are steering clear because of the economy as gold PAGE 13 G Lists of the city’s largest hotels and biggest events Speaker rises above PAGES 15, 16 weaker leaders, sets legislative agenda BUSINESS LIVES COOKED: As finance PULLING THE PLUG jobs evaporate, business is falling BY ERIK ENGQUIST Pet owners at Tommy Krisko’s forgo All-American Diner. the governor is in free fall. The expensive head of the state Senate is a rookie treatment levinekarjean with a razor-thin majority.But one for furry Albany leader is friends more powerful PAGE 21 than ever: Shel- don Silver. The soft-spoken As- GROUND ZERO, AGAIN sembly speaker is the last man standing at a Recession undermines downtown’s fragile recovery crucial moment getty images in state politics. Sheldon Silver INDEX cial firms that employ a third of the His influence BY LISA FICKENSCHER workers downtown cut back, the of- AN EPICENTER’S was on display last week when he NEW YORK, NEW YORK ______6 fices in the skyscrapers around him are DILEMMAS breathed life into a stagnant plan to OP-ED ______10 tommy krisko has been selling food slowly being emptied. avert massive fare increases by the

THE INSIDER ______12 from his mobile All-American Din- “This is like my second home,” says Metropolitan Transportation Au- er at Whitehall Street since 1989, Mr. Krisko, who arrives at his spot at LEFT OUT: How the thority. The state appears on track CLASSIFIEDS ______17 catering to busy bankers and lawyers 5:30 a.m.“Where else am I going to go?” tourism wave never hit to pass a bill closely resembling the WEEK IN REVIEW ______19 who dash out for a chicken cutlet at There is no chain-link fence sur- lower Manhattan P. 14 version proposed by the speaker. SMALL BUSINESS ______20 lunch or stop by for a bagel on their rounding the site of this disaster. But Mr.Silver,a Democrat from the REAL ESTATE DEALS ______20 hurried commutes through the nar- the shrinking financial services in- Lower East Side who became

CORPORATE LADDER ______22 row downtown streets. dustry is leaving another gaping hole speaker in 1994, has steadily con- See AT DEADLINE on Page 2 TABLE TALK ______23 Since December, Mr. Krisko’s in lower Manhattan, one that threat- solidated his strength since putting business is off by 40%. As the finan- ens to do even more damage in the down a coup nine years ago.But his long run than the terrorist attacks. position is especially commanding “The economic cost of this down- now, because the other two legs of 09

5 turn is many multiples of the losses of state government are shaky. Gov. 9/11,” says Kathryn Wylde, chief ex- VIDEO: A neighborhood David Paterson has been hemor- ecutive of the Partnership for New is evolving, but how rhaging public support,and Senate ELECTRONIC EDITION York City. “It’s just that you can’t see stable is it? Coming Majority Leader Malcolm Smith them; they are not physical yet.” Wednesday at has questionable control of his fel- Downtown’s problems are exacer- WWW.CRAINSNEWYORK.COM low Democrats. Neither has an ex- See RECESSION on Page 14 See SILVER on Page 8 71486 01068 0 CNYB 03-02-09 A 2 2/27/2009 9:19 PM Page 1

IN BRIEF MANHATTAN DISTRICT ATTORNEY ROBERT MORGENTHAU’S DECISION NOT TO SEEK re-election this fall has created an opening for one of the most coveted prosecutor’s jobs in the country.Three candidates have already raised significant funds for a campaign, and more are likely to test the waters in the coming days. Leslie Crocker Snyder, a former judge and prosecutor, never really stopped campaigning for the job after losing to Mr. Morgenthau in the 2005 Democratic primary. Former prosecutors Cyrus Vance Jr. and Richard Aborn have been raising money but pledged not to run against Mr. Morgenthau.They are now free to campaign more aggressively. Also viewed as possible candidates: Dan Castleman, who has served as Mr. Morgenthau’s closest assistant and chief of inspections for years; Democratic state Sen. Eric Schneiderman; former state Sen. Catherine Abate; and former Deputy Mayor Randy Mastro. Restaurateurs grab FEEDING TIME: THE NEW YORK SUN MAY NOT BE RISING Steakhouse owner AGAIN, BUT ITS ARTS COVERAGE IS ABOUT TO Mathew Glazier is have a resurrection of sorts. Manhattan Media, spending $1 million to expand his Strip publisher of weekly freebies New York Press, chance to expand House restaurant. West Side Spirit and Our Town, is launching

monthly supplement City Arts, which will neff david feature former arts critics and writers from the Sun.The alumni include Lance Esplund, Brice the city, is converting the bookshop into Brown, Jay Nordlinger, Joel Lobenthal and Falling rents, higher-quality spaces private dining rooms for the 90-seat Strip Marion Maneker.The 24-page publication will House.Mr.Glazier estimates that the ren- debut March 12. Manhattan Media has also spell opportunity for cash-rich few ovation will cost up to $1 million, funds hired two sales executives who specialized in that will most likely come from personal arts advertising at the Sun.The six year old five- that there are more prime locations avail- assets. His parents, Peter and Penny day-a-week broadsheet folded in September. BY LISA FICKENSCHER able, and landlords are willing to con- Glazier, founded the company. Though it never turned a profit, it was prized tribute to tenant improvement in a major A wad of cash and a softening real es- for its arts coverage and carried ads from when a small bookstore next to the way,”says Burak Karaçam,managing part- tate market are also key ingredients in galleries and museums. City Arts will have a Strip House closed recently, the restau- ner of Pera Mediterranean Brasserie in Oliver and Leo Kremer’s plans.The twen- print run of 65,000 copies. rant’s owners didn’t hesitate—they Manhattan, who is negotiating a deal for a tysomething brothers came to the city grabbed the space. second restaurant. from San Francisco in October. Armed CORRECTIONS “It was a no-brainer for us,” says with startup cash from family and deter- Mathew Glazier, co-owner of the East Bet on better times mined to open a taqueria, their aim is to PDI Inc.’s new CEO, Nancy Lurker, has spent 25 years in the pharmaceutical industry, most recently at Novartis. Her tenure was 12th Street steak spot.“We turn away cus- although in general,bar and restaurant launch a take-out business selling Mexican described erroneously in the Feb. 23 “In The Markets” column. tomers every night.” revenues are off 20% to 40% and restaurant items for under $10. Residence Resource is a licensed real estate brokerage that sells Mr. Glazier is among a small group of closures are up, a few have seen a smaller When the Kremers began their site apartments at Lincoln Towers and elsewhere. It was described cash-rich restaurant and bar owners who dip or even a pickup in sales. It’s a great search, most landlords turned them down incorrectly in a Feb. 23 story on co-op and condo charges. are expanding even as the city’s economy chance for them to expand,as they bet that because neither has run or owned a restau- Manhattan law firm Debevoise & Plimpton employs some 750 law- shrivels.Rents are dropping,and landlords the downturn will have lost its punch by rant.But landlords have become less selec- yers. The figure was incorrect in a Feb. 23 “Week in Review” item. are eager to cut deals on prime space that the time their new venture or added capac- tive as the recession deepens. The siblings formerly would have been gobbled up by ity comes on line. are currently negotiating with a West Vil- vol. xxv, no. 9, march 2, 2009—Crain’s New York Business (issn banks or chain stores. The Glazier Group, which owns three lage owner for a lease on a 1,000-square- 8756-789x) is published weekly, except for a combined issue 4th “What makes this time appealing is other restaurants and catering venues in See RESTAURATEURS on Page 8 week of December by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved. Not-for-profits throw hats

“Everybody’s sitting on tenterhooks, MISERY METER Myriad groups pitch waiting to see how quickly this money is

projects large and small; going to flow,” says Kim Whitener, pro-

Weekly reading on direction of the city’s economy. ducing director of Here Arts Center in

SURE IT RAINED dismal data—from GM’s losses to confusion reigns on downtown Manhattan. plummeting housing sales—but President Obama’s 52- The organization is asking for about $1 minute speech Tuesday and the proposed $3.6 trillion requirements, process budget at least held out some hope. million to cover a number of projects, including $750,000 to set up two rehearsal BY MIRIAM KREININ SOUCCAR spaces in Brooklyn.“We are applying any-

POSITIVE NEGATIVE where we can for these funds,” Ms.

CLOUDY local nonprofits are scrambling to get a Whitener says. share of the federal stimulus money soon S Process unclear Y T to start moving into New York state for O N R “shovel-ready” construction projects. the process is confusing.The funds are N M U The soliciting organizations range to be distributed from different pots— Y S from arts groups to low-income housing state, municipal and federal—and it is un- agencies. Their projects include fixing the clear how much each will be allocating for sidewalk in front of a Manhattan theater construction projects. and creating a three-acre park on Roo- New York state is getting $25 billion, -6.2% 25 -4.2% sevelt Island. for example, but not all of that will be al- Rate at which the Consumer Bloomberg/ Desperate for the cash as donations lotted to construction work. The mayor’s U.S. economy confidence index Crain’s NY stock shrank in final reading for Feb., index, weekly dwindle, nonprofit executives are pitching office will have about $500 million to as- quarter of 2008 lowest since index change projects to every government official they sign to shovel-ready projects, and an un- ing for funding on shovel-ready projects (Commerce began in 1967 can find. But no one knows how the deci- known amount will come directly from that are worth an estimated $166 billion, Department) (Conference Board) sion-making process will work or how Washington. according to a recent study by the Johns much money is actually available. Nationwide,1,065 nonprofits are look- Hopkins University. New York, with 59

2 | Crain’s New York Business | March 2, 2009 CNYB 03-02-09 A 3 2/27/2009 9:36 PM Page 1 A star is shorn NY’s rich a personality who lent more weight a charisma vacuum at the top of glamorous subscriber-based media to feel ‘Steven Rattner’s to the “front of the house,” attract- Quadrangle. New Co-Presidents outlets. fund’ can now go ing investors and providing a big- Michael Huber and Joshua Steiner, picture idea here or there, rather former Lazard telecom analysts Media pals Bloomberg, Sulzberger back to being than finding and executing success- who’ve been with Quadrangle since private equity funds raise money, tax bite Quadrangle Group ful investment opportunities. the beginning,have declined to give usually from pension funds and oth- Talk of Mr. Rattner decamping any public interviews since their er institutions with large pools of So too will industries to Washington was rampant during appointment and would just as cash, and deploy that money by BY HILARY POTKEWITZ the 2004 election, when he threw soon keep a low profile. The man- snapping up companies ripe for that feed off them: significant financial and social sup- agement change also highlights the turnarounds.The Quadrangle team to some new yorkers with a fi- port behind Sen. John Kerry, so his firm’s quiet shift away from invest- raised about $1 billion for a first fund charities, real estate nancial bent, private equity firm transfer to D.C. wasn’t a surprise. ments in big advertiser-based me- in 2000 and amassed another $2.2 Quadrangle Group has simply His departure may leave a bit of dia companies and toward less billion for a second fund in 2005. BY ADRIANNE PASQUARELLI been known as “Steven Rattner’s The partnership now has about $6 fund,”after the media-savvy invest- billion under management. it’s a challenging time for New ment banker,Democratic fundrais- His departure for Quadrangle does not reveal its York’s affluent,eh? Judging by the tax er and former Lazard deputy who fee structure, but private equity hikes on wealthier Americans pro- launched the fund in 2000. Washington may leave fund managers typically charge posed last week by President Barack No longer. Last week, when Mr. a charisma vacuum at clients a 2% annual fee based on the Obama, it’s an even tougher time for Rattner was appointed as a special original investment amount, plus the nonprofit and real estate indus- adviser to Treasury Secretary Tim- the top of Quadrangle. 20% of any gains. tries those affluent people support. othy Geithner on the auto industry Mr. Rattner’s deep connections Nearly 292,000 tax returns de- bailout, he resigned his post as That’s fine with the two in the media world, such as his claring income of more than managing principal of Quadrangle. friendship with Mayor Michael $250,000 were filed in New York The firm issued a public state- lesser-known partners Bloomberg, paid off handsomely last year. To pay for ambitious ef- ment congratulating Mr. Rattner last year when Mr. Bloomberg forts like reforming America’s on the “utmost importance” of the now running things. See A STAR on Page 8 health care mess, the President new assignment and expressing wants to raise income-tax rates for sadness at his departure.But the re- individuals earning $200,000 or maining partners don’t seem too more and couples making at least sad to see Mr. Rattner go. $250,000—and lower their tax de- After all, it’s been five ductions on mortgage interest and years since he’s brought a charitable contributions. hot deal to the firm, The top two tax brackets would say insiders who de- increase in 2011 to 39.6% and 36%, cline to be quoted from the current 35% and 33%,while by name. They also deductions for mortgage interest and intimate that Mr. charitable giving would be capped at Rattner’s role as a a 28% rate, down from today’s 35%. rainmaker may have The affluent in New York have run its course. already lost between 30% and 50% A NEW ANGLE ON of their net worth over the past year, A quiet strategy shift QUADRANGLE: Media- savvy star Steven Rattner sighs Michael Sonnenfeldt, the mr. rattner declines (above) is heading to founder of Tiger 21, a Manhattan- to comment, and of Washington, leaving based club for people whose net course, it could be in the Co-Presidents Michael worth is more than $10 million. firm’s interest to down- Huber (right) and Joshua Real estate pros play the exit of a star name. Steiner (far right) to invest are especially wor- in their own media But he is seen by some in the favorites. ried about caps on 292 private equity community as mortgage interest THOUSAND deductions. “There NY tax returns getty images with incomes is less of a reason to above buy a house and $250,000 ing center for at-home day-care take on the mort- providers. gage if not all of it is deductible,” in ring for stim funds “This idea of ‘shovel-ready’ says Steven Spinola,president of the came about very quickly,” says Va- Real Estate Board of New York. lerie Neng, director of housing and “When people buy a home, they help Community Ser- York,” says former diplomat community development at tend to stretch.” vices Inc., which is William vanden Heuvel, who WHEDCo. “This entire stimulus Arts and culture groups here get seeking nearly $14 founded the institute. package just whooshed by.” roughly half their funding from char- million to upgrade in- Mr. vanden Heuvel has dis- Pamela Green, executive direc- itable giving, say nonprofit experts, frastructure at two patched detailed applications to tor of the Weeksville Heritage although the amount donated by in- senior citizen resi- Gov. David Paterson, Sen. Charles Center in Brooklyn, an African- dividuals varies. For example, Lin- dences in Flushing, Schumer and other power brokers, American historical society, sub- coln Center receives only about 15% Queens, and the New but he has no idea when to expect mitted a $5 million request to the of its funding from individual gifts. York Botanical Gar- an answer. New York Department of Cultural “Why would you want to take a den, which wants $20 Affairs and to several of the city’s risk in the change in the tax code million for a parking Guidance to propose elected officials. that could further reduce philan- facility connected to a in some cases, elected officials The city has already provided thropic dollars—at a time when the Metro-North station. have spurred groups to apply for Weeksville with much of the $25 [nonprofit] sector needs those dol- WAITING: Weeksville The Franklin and funding. State Sen. José Serrano, million it needs for a 19,000- lars more than ever?” asks Gordon Heritage Center, Eleanor Roosevelt In- D-Bronx, for instance, asked or- square-foot performance and edu- Campbell,chief executive of United which asked for $5 stitute wants roughly ganizations in the 16th District to cation space that the center plans to Way of New York City. million, doesn’t know $25 million to create a submit proposals for shovel-ready break ground on in June. Of course, the wealthy will still what the plan criteria were, according to park on Roosevelt Is- projects. Stimulus money would enable donate, if on a different scale. And Pamela Green. land that was designed Officials at the Women’s Hous- Weeksville to add a parking lot and even some of the wealthy see the years ago by legendary ing and Economic Development a fence, but Ms. Green is uncertain problems of smaller tax breaks as

roger hagadone architect Louis Kahn Corp., say they were given two days about her odds. small stuff when compared with the to honor the 32nd to prepare and submit a plan to Mr. “We don’t know who else is on overall economic picture. projects worth an estimated $18.9 president. Serrano. The agency is asking for the list, and we don’t know who we “It doesn’t pay to debate whether billion, ranks second only to Cali- “We can begin construction in $650,000 to make its main low-in- are competing against,” she says. you have a high or low tide if you fornia on the list. June,provide 300 jobs and be an income residence energy-efficient, as “And we also have no idea what the have a tidal wave coming,” says Mr. Proposing groups include Self- credible tourist attraction for New well as for $700,000 to build a train- requirements were.” Sonnenfeldt.

March 2, 2009 | Crain’s New York Business | 3 CNYB 03-02-09 A 4 2/27/2009 7:18 PM Page 1

ence preferred! Willingness to attend frequent weekend meetings a must. Send résumés to Citigroup Inc., IN THE MARKETS c/o Dick Parsons, 399 Park Ave. Would you want this job? If so, by Aaron Elstein contact Mr. Parsons, who officially took the chairman’s gavel last week, because restocking the Citi board We are pleased to have exclusively represented seems to be proving as difficult as re- viving its share price. Time for King Stephen The U.S. government, which now holds a 36% stake in Citi, is de- The Rockefeller Group to buy back battered manding a long-overdue board shake-up. Five members of Citi’s Blackstone Castle? 15-member board are already headed out the door,most notably former ack in the jurassic, in the Treasury Secretary Robert Rubin. in the sale of spring of 2007, Blackstone Group But it seems as if Mr. Parsons is Chief Executive Stephen finding few takers for the vacancies. B James Kilts, the former chief execu- 1627 Broadway Schwarzman appeared on the cover of tive of Gillette, and Harvard Busi- New York, NY Fortune, which declared him “the new ness School professor Jay Light have king of Wall Street.” A copy of that both reportedly turned down offers to join the board, citing time con- magazine is for sale on eBay. The price: straints. $7.95.In other words,more than the price Citi’s board needs people who to Blackstone shares fetch today. are or have been CEOs or CFOs There’s nothing Mr. Schwarzman can with plenty of experience dealing The Laboz Family of with the government,says Matthew do about the awful markets that savaged McGreal, a recruiter at Crist/Kold- United American Land LLC his financial firm’s leveraged-buyout er Associates who helps find board advised by Casey Cutler members. They also need to be un- business. But there is something he plans.Considering that Blackstone’s tainted by the banking industry’s could do for his shareholders: end market value is only about $1.3 bil- problems. “There’s just a very small This transaction was arranged by Richard Baxter, their misery by taking Blackstone pri- lion, Mr. Schwarzman could easily group of folks who fit this bill,” Mr. vate again. afford to buy back his company. Af- McGreal says. Jon Caplan, Yoron Cohen, Scott Latham, Blackstone hinted at just this ter all, Forbes pegs his net worth at Helen Hwang and Karen Wiedenmann of idea during a conference call last $6.4 billion, thanks in part to the A ‘40 Under 40’ the New York Capital Markets Group. Friday to discuss its sixth consecu- windfall he reaped from Blackstone’s tive quarterly loss. According to 2007 initial public offering. comes of age Reuters, its chief operating officer What’s more, buying back said the firm may start buying its Blackstone at about $5 a share after congratulations stock if the price gets “too ridicu- selling it to the public at $31 a share are in order for Ade- lous.” The shares fetch $4.87— would mean Mr. Schwarzman es- na Friedman, a heck, nearly penny-stock territory. sentially shorted his own firm’s Crain’s 40 Under 40 But now is not the time for little stock at a huge profit.How tantaliz- in 2005, who last ing is that for one of Wall Street’s week was promoted top dealmakers? to chief financial of- There’s just no reason for Black- ficer of Nasdaq OMX stone to be public.The rationale be- Group. She replaces hind the IPO, besides making Mr. David Warren. Schwarzman and his partners even Ms. Friedman, now 39, takes the wealthier, was to have a publicly job when Nasdaq is under heavy pres- traded vehicle that could help retain sure on multiple fronts. Listings of employees by offering them shares. new stocks are dormant since almost It’s tough to see how a stock that no companies are going public nowa- trades so far below its IPO price days. Nasdaq’s business of trading would motivate employees to stay— stocks is under assault from rivals assuming, of course, they could find ranging from longtime foe NYSE work elsewhere. Euronext to upstarts like BATS, and the generally awful state of the markets means there’s less business for Board stiffed at Citi everyone to fight over. wanted: board members for a Ms. Friedman, who can talk big—but rapidly shrinking—finan- baseball as fluently as she can the cial institution. Past director pay of mechanics of trading, now gets to $75,000 per year in cash and explain during quarterly conference $150,000 in stock is subject to calls with investors and the press just change, pending approval from new how Nasdaq will navigate through lead shareholder. Financial experi- the turmoil.

A NOTION OF SHOPKEEPERS WITH A STOCK PRICE NEAR $2 late last week, retailer Saks Inc. is being valued by the market at around $300 million—or some 40% less than the estimated sale price of the company’s flagship Fifth Avenue store, which real estate experts appraise at about $500 million these days. While Saks owns 30 of its 53 Saks Fifth Avenue stores, including a prime spot in posh Beverly Hills, the Manhattan store is the company’s cash cow, generating 20% of Saks’ total sales volume. —ADRIANNE PASQUARELLI

4 | Crain’s New York Business | March 2, 2009 CN012759 2/20/09 1:01 PM Page 1

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Chelsea/ NEW YORK,NEW YORK 11 West Flatiron th Street edited by Valerie Block 19 Gem

Full ﬂoor available - 26,000 rsf Expansion opportunity and actor/director Sean Penn New lobby and elevators Generous workletter Billionaire’s memoir out of focus received his second leading-actor 24/7 building access with concierge Steps off 5th Ave. icrosoft co-founder Paul Allen (below) is ready Oscar for the film. Tenant roster includes Time Warner, Nautica, Maximum executives say the to write his memoir. nods will raise the company’s Universal Music Group, Epsilon Interactive and Tory Burch Over the past few weeks, ICM superagent profile—a coup during a recession. M “There will definitely be an Building Entrances on both 19th & 20th Streets Esther Newberg has been gauging interest in a book by the uptick in work,” says partner Jim legendary billionaire, presenting publishers with a short Czarnecki. Maximum has produced proposal and the chance to meet face-to-face with the commercials for Avon’s new author—if they put an offer on the table. fragrance, Bond Girl 007, and for Initially, publishers were excited that Mr. Revlon, among others. Allen would be telling his life story. In addition to helping Bill Gates launch Beer maker’s Microsoft, he survived cancer to payments go flat become a renowned investor, anheuser-busch’s policy of “net philanthropist and owner of several sports 120 days” to pay ad agency teams, including the Seattle Seahawks. invoices isn’t going But at least two publishers were down smoothly in New York. underwhelmed by the three-page outline “They’re not that Ms. Newberg distributed. “The helping our proposal needs to be a little more economy in a focused—whether it’s a book about time of crisis,” says one being an entrepreneur or surviving advertising hard times, or whatever,” one executive, 100% COMMISSIONS executive says. “A straight who asked PAID ON SIGNING not to be autobiography isn’t enough.” named. “It’s

One industry insider says that economic flickr FOR LEASING INFORMATION, CONTACT: other houses are still considering extortion.” the material. A letter sent CAROL SACKS [email protected] 212.452.6055 last month detailing the plan also MICHAEL DUBIN [email protected] 212.452.6042 Ms. Newberg did not return implies that it’s the brewer’s way or

11west19thstreet.com bloomberg news a call requesting comment. the highway.“If you are not able to work with the change in payment terms, we may have to consider an Restaurant group Oscars provide alternative supplier,” the letter says. LEASING & MANAGEMENT seeks new Patina Maximum exposure The executive says that Savittpartners.com Anheuser-Busch was never while many food companies want an oscar winner to quick to settle accounts, even have slashed their budgets, Patina direct your next commercial? before it was acquired by Restaurant Group has sunk Maximum Entertainment, Belgian rival InBev. “Getting $150,000 into a branding a year-old advertisement money from them was like campaign that launches this week. production company, asking to deflower their “We want to reset our image,” uses directors with daughter,” he says. says Chief Executive Nick Valenti, filmmaking pedigrees, In a statement, who oversees 30 restaurants on and a few of them were Anheuser-Busch cited both coasts. A new pastel logo— headliners at the “the challenging global PRG—and Web site are aimed at Academy Awards last economic highlighting the company’s fine- week. environment” and dining strengths. Sea Grill at James Marsh (right) promised “to help Rockefeller Center and La Fonda took home a best [suppliers] with the del Sol are among the eateries documentary statuette transition.”

featured on the site. for Man on Wire. Big- getty images In conjunction with the name director Gus Van Contributors: Lisa Fickenscher, branding effort, Patina is getting Sant earned a Matthew Flamm, Miriam into catering in the East. Mr. nomination for Milk, Kreinin Souccar Valenti has experience in that business, having spearheaded it at Restaurant Associates, where he VIEWING A MIRACLE brought in large accounts like the FROM MARCH 2 THROUGH MARCH 17, U.S. Open. Patina, which split off the Waldorf Astoria will feature a from RA two years ago, already painting in its south lobby commemorating the US Airways flight that land- has a catering operation on the ed in the Hudson River in January. Miracle on the Hudson then goes to West Coast. the Beverly Hills Mr. Valenti just signed a deal Hilton for display, and to run concession services at the will ultimately land in Ladies Professional Golf the possession of Association U.S. Open. “This is Captain Chesley Sul- significant for us, because we lenberger, the pilot had developed the tennis and hailed as a hero for golf business over the years,” he saving all on board. says.

6 | Crain’s New York Business | March 2, 2009 CN012758 2/20/09 1:00 PM Page 1

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Be part of it. For more information on our Centennial Conference Series events in Miami, Zürich, New York and Shanghai, go to http://centennial.kellogg.northwestern.edu CNYB 03-02-09 A 8 2/27/2009 9:37 PM Page 1

with ad sales plummeting and cred- itors threatening to seize the re- A star is shorn mains of the business last fall.Quad- Silver’s good as gold rangle seems to have all but given up Continued from Page 3 time friendship with New York on that investment, and the compa- Continued from Page 1 and Assembly Democrats, who ap- turned over his estimated $15 bil- Times Co. Chief Executive Arthur ny is working out a restructuring. perienced, fully formed staff, while preciate how he defends their inter- lion fortune for Quadrangle to man- Sulzberger stretches back to the A 2004 investment in MGM Mr. Silver boasts a talented crew of ests in the face of criticism from age in a blind trust. days when the duo worked together made headlines as a stinker: The Albany veterans who wield consid- competing interest groups and the Mr. Bloomberg says he intends as print reporters for The Times. movie studio was taken private by erable influence behind the scenes. media. to keep his private wealth with the half a dozen investors in a $5 billion Political commentator Henry The speaker has been a rare voice firm despite the departure of his “Old media” investments deal and then flopped. However, Stern calls Mr. Silver “the most of support in recent weeks for Mr. good friend. alas,quadrangle’s“old media”in- Quadrangle’s stake in MGM was powerful political figure in New Paterson, who has otherwise been “I chose Quadrangle to manage vestments have not gone so well. Its less than 3%. York state.”The speaker has reached ridiculed by Democrats,Republicans my investments because of the 2006 foray into media-focused The firm’s most successful in- that peak just as the most important and the media for political blunders quality of the team,” the mayor said hedge fund investing ended badly vestments over the past five years state budget and legislative session and poor staff management. He may last week, indicating that the last November,when the firm’s $500 have been in regional telecom and in decades takes shape. not be acting merely out of kindness. track record of the firm—rather million media hedge fund was cable carriers. Most recently, Quad- The man with all the cards has The goodwill Mr. Silver has extend- than that of any one manager—is closed because its value had tumbled rangle made a sizable investment in begun laying them on the table. Mr. ed could pay dividends throughout the reason that he intends to “main- more than 25%. satellite company Intelsat. Silver says he will push a version of the session. “The governor might be tain this partnership going for- The partnership’s $250 million Quadrangle Capital Partners II, Richard Ravitch’s controversial discombobulated at the moment,but ward.” purchase in 2007 of Alpha Media its second fund, returned about MTA funding plan, including a 12- at the end of the day you still need the Beyond Mr. Bloomberg, howev- Group, publisher of men’s magazine 16.5% last year, according to recent county payroll tax and $2 tolls on the governor’s signature,” a Democratic er, Mr. Rattner’s most famous ties Maxim and music title Blender, financial reports filed by the Cali- free bridges to Manhattan.He is also strategist notes. are decidedly “old media.”His long- proved to be a spectacular flameout, fornia State Teachers’ Retirement seeking the first major reform of rent System and the California Public regulation since 1997 and an end to “Regent to the king” Employees’ Retirement System, the Rockefeller drug laws. Both are democratic consultant Michael which each committed $100 million achievable, as Democrats control all Tobman,referring to Mr. Silver’s re- CRAIN’S AWARDS to the fund. three branches of state government lationship with Mr. Paterson, says, for the first time since the mid- “Shelly Silver serves both as a pow- SEEKING TOP ENTREPRENEURS Another $2.25 billion to raise 1960s.Mr.Silver,a lawyer,was elect- erful speaker and regent to the king.” its first fund has not been per- ed to the Assembly in 1976. The strategy may be working. IN NEW YORK CITY forming as well. It posted a 12.4% Mr. Silver will not say how he Mr.Paterson appears to be warming return as of last June,the most recent wants to close the state’s record- to the income tax increase that Mr. CRAIN’S SEEKS NOMINATIONS for its 14th annual awards for top performance data available, accord- high $14 billion budget deficit, ex- Silver supports. The governor has entrepreneurs, formerly called the Small Business Awards. The six winners ing to Preqin Private Equity Intelli- cept that higher income taxes for the denounced the current tax structure will have distinguished themselves by showing a pattern of growth in their gence. wealthy should be part of the solu- as “not progressive” because it im- businesses and contributing to their communities’ quality of life. Quadrangle is reportedly tion.Insiders expect that he will pre- poses the same rate of 6.85% on Business owners must be running for-profit enterprises that have been in launching a third private equity vail on that score. households whether they earn business for at least three years. They must employ no more than 150 fund next year,with a target of $2.25 The bedrock of the speaker’s $40,000 or $40 million. people, have annual sales of no more than $40 million and be billion. But little progress has been clout is his overwhelming majority Removing the draconian sen- headquartered in New York City. Entrepreneurs can nominate themselves or made since initial murmurings in the Assembly, where Democrats tencing mandates of the Rockefeller they can be nominated by a business contact. The entry deadline is noon on about the effort last fall, given the now control 109 of 150 seats. drug laws, in place since the early April 1. Winners will be profiled in the June 1 issue. stock and credit market’s continu- “It gives Shelly an enormous 1970s, would give a major boost to To nominate someone, send his or her name, address and a letter ing collapse. Whenever the amount of authority and political Mr. Silver, an advocate of liberal detailing commercial and civic accomplishments to Crain’s Top Entrepreneur fundraising begins in earnest, it will strength as far as the budget and the causes such as funding for inner-city Awards, 711 Third Ave., New York, NY 10017. The information can also be be the firm’s first such effort with- legislative session,” says environ- schools and AIDS services. e-mailed to [email protected] or faxed to (212) 210-0799. out Mr. Rattner. mental lobbyist Richard Schrader. Mr. Silver, a married father of Last year’s honorees included Dick Chen of Aerospace Wire & Cable, a The former public face of the “When it’s a small majority, like four and grandfather of 15,also sup- specialty-cable manufacturer; Christiane Lemieux of Dwell Studio, a private- firm will still have a stake in the out- Smith has [32 of 62 seats], everyone ports a series of bills the Assembly label design shop; and Terry Tang of TMI Food Group, an Asian food come, however. While he no longer is crucial,so it’s hard to get a consen- recently passed making rent regula- manufacturer. Other winners were Daniel Garcia of Salsa Caterers & Special has voting rights, Mr. Rattner sus bill through. Shelly doesn’t have tion more tenant-friendly. One bill, Events; Tom Shannon of Strike Holdings, an operator of hip bowling alleys maintains his partnership share— that problem.” sponsored by West Side Democrat most of which is being managed in Linda Rosenthal, would end the including Bowlmor in Greenwich Village; and Josh Selig, owner of Little Building consensus Airplane Productions, which produces children’s television shows. a blind trust, to eliminate potential system by which apartments be- conflicts of interest, given his new in making deals with the other come unregulated when their rents public role. chamber and the governor, Mr. Sil- surpass $2,000.It would even return ver taps into his considerable politi- some market-rate apartments to cal skills. regulated status. “The speaker clearly knows how Joseph Strasburg, president of Restaurateurs grab their chance to play both the politics of Albany the Rent Stabilization Association, and the interpersonal dynamics which opposes the Assembly’s re- among the leadership,” says Scott form, criticizes Mr. Silver for mov- Continued from Page 2 in midtown. but the big question is whether you Levenson, a Democratic consulting the bills without fully consider- foot space. Other bar and restaurant own- take a space or wait a little longer to ant. “He’s a master at both.” ing the implications for the city “We are a little bit of a gamble,” ers expect that rents will fall fur- see if something better comes along.” Enacting the Assembly’s agenda economy. “It showed a lack of seri- Oliver says.“But no one even brings ther and that even more desirable But Greg Wetanson thinks this won’t be easy: Passing legislation in ousness by the chamber,” he says.“It up our [lack of experience] now.” locations will come on the market in is the right moment. The owner of Albany is far more difficult than was a farce.” Money is also not an obstacle for eight Dallas BBQ joints in New blocking it. Mr. Silver will probably The Assembly has passed such nightclub impresario Steven Green- York, some as large as 8,000 square need some support from Senate Re- bills before as a gesture, knowing berg, of Palladium and Roxy fame. ‘I think there will feet, is negotiating with landlords at publicans to enact the Ravitch plan that Senate Republicans would He has long wanted to replicate his three of his eateries to take over if bridge tolls are included. Though block them.But this year,the speak- 230 Fifth, a sprawling indoor-out- be a big space next door. Mr. Smith’s 32 Democrats are er held a press conference to pro- door rooftop lounge in the Flatiron enough to pass a bill, they are not mote the legislation and is expected district. He’s willing to plow nearly shakeout in Solid prospects unified on the toll plan; divisions to negotiate with Senate Democrats $30 million into three similar spots: with the average dinner tab will certainly come up on rent regu- to advance it to the governor’s desk. in midtown, the meatpacking dis- March and April’ under $20 a person, Mr. Wetanson lation, the income tax increase and Mr. Paterson himself resides in a trict and Times Square. Landlords says, “I do well in a good or bad other issues. rent-stabilized apartment and is have typically reserved top floors for economy.” If Mr. Silver gets his agenda sympathetic to tenants’ cause—and their highest-paying office tenants, Real estate isn’t the only bargain through, it would counteract his in any case isn’t strong enough to but with such vacancies soaring, Mr. around for growing restaurateurs. reputation as an obstructionist, pick fights with the speaker on mat- Greenberg’s proposals are getting a the coming months. Michael Amodeo, who owns an which has been bolstered in recent ters not central to the administra- receptive hearing. Hospitality Holdings, which op- eponymous liquidation company years by his having stopped conges- tion’s agenda. erates five upscale bars, including specializing in food service busi- tion pricing, a West Side football “What the speaker champions Change of heart The Campbell Apartment upstairs nesses,says his auction events are up stadium and various government- has a much greater chance of be- “it’s much easier for me to ex- in Grand Central Terminal,is prowl- 25% so far this year from the 2008 reform proposals. It would also coming law and state policy, but of pand now, because of landlords’ ing New York City for a sixth loca- period. deepen the longstanding resent- course we need all three [branches] greater willingness to consider me tion. “I think there will be a big “For the ones already in business, ment against him among landlords to work together,” Ms. Rosenthal as a tenant,” says Mr. Greenberg, shakeout in March and April,” says an auction is an opportunity” to get and anti-tax conservatives. But the says. “Shelly is well-poised to be who adds that he is close to signing Chief Executive Mark Grossich. equipment and furniture on the achievement would further endear very influential in those discus- a lease for a top-of-building space “We’ve made a decision to expand, cheap, he says. him to liberals, environmentalists sions.”

8 | Crain’s New York Business | March 2, 2009 CNYB 03-02-09 A 9 2/27/2009 3:05 PM Page 1

loan-loss reserves, according to Fitch Ratings analyst Eric Newell, decline by another 40%. SNL. Emigrant’s Brooklyn affiliate who cut the bank’s credit ratings in But the area’s biggest basket case NYC’s worst banks has a Texas ratio of 78%. SNL data October and warned that its credit is Citizens Community Bank of show that Texas ratios for Emi- outlook is “negative.” In addition to Ridgewood,N.J.The four-year-old, Continued from Page 1 institutions, also seem to be in diffi- grant’s two vastly larger operations investment losses, problem loans one-branch bank has a stunning right. The bank lost $10 million in culty. Run by CEO Howard Mil- in Manhattan are less than half of could loom,though such losses have Texas ratio of 686%, according to 2007 and $4 million last year while stein—whose family’s fortune is the ratio for the Long Island unit. been low so far. SNL. Citizens has $44 million of accumulating dud construction and pegged at $5 billion by Forbes—the Any capital infusions to Emi- deposits and an equal amount of as- commercial real estate loans,accord- $15-billion-asset bank has stum- grant’s outer-borough affiliates Milstein’s bank: We’re “strong” sets. But it has just $141,000 of cap- ing to data filed with the Federal De- bled lately. Its largest division post- could be complicated by the pressure a spokesman responded in a state- ital after big losses in a portfolio posit Insurance Corp. Regulators ed a $226 million net loss in the facing its biggest division in Man- ment saying, “Emigrant Bank as a filled with residential construction slapped the institution with a cease- fourth quarter, and the institution hattan. It sank into the red last quar- whole and each of its regional banks and commercial real estate loans,ac- and-desist order last month and accepted $267 million in federal ter because of a $436 million loss on are in strong financial condition,de- cording to an FDIC filing. warned it to get its act together, fast. bailout money in January. its $3 billion investment portfolio, spite the surface appearance of the Last fall, regulators told Citizens Park Avenue Bank promises that Emigrant’s seven-branch Long according to an FDIC filing. numbers recited.” to cease “hazardous lending prac- it will comply. Chairman Donald Island affiliate has a Texas ratio of And more could be on the way. The statement also said Emi- tices” and raise fresh cash. A call to Glascoff says shareholders in the 104% because nonperforming as- “Emigrant has a lot of invest- grant took the federal bank-bailout Chief Executive Joseph Atieh about closely held institution have con- sets—specifically, $20 million ment exposure to other financial in- money as an “insurance policy” and the order was taken by an employee tributed or pledged $21 million in worth of residential mortgages— stitutions—obviously a sector that’s that its distressed loans will not re- who said,“We are not answering any fresh cash. exceed the division’s capital and struggled quite a lot lately,” says sult in losses unless real estate values questions about that.” “This will make us well-capital- ized,” says Mr. Glascoff, former co- chair of law firm Cadwalader Wick- erham & Taft.He adds that the bank now makes fewer real estate loans. Though Park Avenue has the un- fortunate distinction of being New York’s wobbliest bank, a dozen area institutions are showing signs of distress. They include the Milstein family’s Emigrant Savings Bank, which has been around since 1850. In banking, distress can be gauged by comparing the amounts of delinquent loans and other nonperforming assets on the books against capital and loan-loss reserves—a measure known in the industry as a “Texas ratio.” A reading above 100% indicates that a bank is in danger of failing, and one above 50% suggests that it requires a capital infusion. Lawrence Connell, a consultant at Promontory Financial Group and former Connecticut banking regu- lator, calls the ratio “a very important 50% tool for regulators, “TEXAS RATIO” because it gives you suggests a bank an idea of a bank’s needs more capital against ability to absorb possible losses losses.” The Texas ratio at Park Avenue Bank is 193%, according to data from research firm SNL Financial. In other words, its nonperforming assets are nearly double its capital and loan-loss reserves. IndyMac Bancorp’s ratio reached 146% shortly before it failed last summer. Park Avenue Bank’s troubles are compounded by the fact that it might not be able to raise funds from one of its biggest shareholders, prominent real estate investor David Lichtenstein, who has a 25% stake. Major investor stressed elsewhere mr. lichtenstein is the founder of Lightstone Group, which acquired Extended Stay Hotels in a highly leveraged $8 billion transaction two years ago—before the economy went into free fall. Occupancy rates in the company’s category slipped by 6.1% last year, according to Smith Travel Research. Lightstone reportedly is in talks to hand over control of the hotel chain to lenders. Chief Executive Charles An- tonucci is providing most of Park Avenue Bank’s needed capital, according to Mr. Glascoff, who is un- sure if Mr. Lichtenstein will invest again. Mr. Lichtenstein didn’t return a call. Parts of Emigrant Savings Bank, one of New York’s oldest financial

March 2, 2009 | Crain’s New York Business | 9 CNYB 03-02-09 A 10 2/26/2009 8:42 PM Page 1

VIEWPOINT A good year for wine reform editor in chief Rance Crain publisher, vp Jill R. Kaplan proposal to allow grocery stores to sell wouldn’t survive the increased competition from grocery editorial director Greg David wine in New York state comes down to a stores, but the number would be far fewer than the EDITORIAL editor Xana Antunes choice between more competition and scaremongering suggests.The best liquor stores would managing editors Glenn Coleman, Robert Hordt increased tax revenue on one hand, and continue to provide selections and service no supermarket deputy managing editors Valerie Block, Erik Ipsen continued protection for a regulated could match. In fact, the increased competition will likely contributing editor industry on the other. force many liquor stores to improve, a pattern repeated over Elizabeth MacBride columnist Alair Townsend The plan is straightforward. Stores and over again whenever new entrants are allowed into a senior reporters Theresa Agovino, with licenses to sell beer would be allowed to sell wine, and market. Aaron Elstein, Erik Engquist, Lisa Fickenscher, they would have to pay a hefty franchise fee for the right. Liquor stores’ real problem isn’t competition; it is the Matthew Flamm, Miriam Kreinin Souccar A reporters Barbara Benson, Amanda Fung, The state would receive an estimated $155 million archaic laws that hamstring owners. They can operate only Daniel Massey, Adrianne Pasquarelli, immediately, a sizable sum given its budget problems, and one outlet, which precludes them from expanding and Hilary Potkewitz, Gale Scott, Matthew Sollars restaurant critic Bob Lape would likely see an increase in revenue in subsequent years amassing the economic art director Steven Krupinski as well. wherewithal that deputy art directors Carolyn McClain, The state Daniel Mednick Amid the escalating rhetoric over this issue, two facts would allow them to staff photographer Buck Ennis illustrate how out of touch New York’s liquor laws are. would receive compete. The state also copy desk chief Wendy Zuckerman Thirty-five states allow grocery stores to sell wine. All prohibits them from copy editor Thaddeus Rutkowski $155 million research editor Denise Southwood of them have more wine outlets per capita than New selling complementary www.crainsnewyork.com immediately web editor Brian Tracey York, which ranks 47th in the country. California, with products such as gift senior producer Elisabeth Butler Cordova twice as many people, has six times the number of wine bags, cheese or snack producer Kira Bindrim outlets. items. Entrances must EDITORIAL AND ADVERTISING OFFICES If the idea is approved, consumers would enjoy lower be on the first floor, 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 prices and more convenience. New York’s wine industry, and nothing can advertising: 212.210.0259 which desperately needs new markets in the state if it is to obstruct the windows. Regrettably, too many liquor store Cable craincom nyk Fax 212.210.0499 grow, would also benefit by increasing its distribution owners are comfortable with these rules. Entire contents ©copyright 2009 Crain network.That’s why the New York Farm Bureau is an The Legislature should approve the proposal to allow Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP enthusiastic supporter, as are many of the state’s most wine to be sold in grocery stores, and accompany it with Inc., used under license agreement. innovative wineries. legislation loosening the rules that stifle liquor stores.The TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. Admittedly, some of the state’s 2,500 small liquor stores result will help the state’s consumers and its finances. $3.00 a copy, $59.79 one year, $109.79 two years. www.crainsnewyork.com

ADVERTISING AND MARKETING senior account managers POLL COMMENTS Cornelius P. Gore, William E. Squitieri commercial real estate sales manager Cory Marks account executives Irene Irvill, Courtney McCombs, Anthony Mowad sales manager, classified Obama has to get beyond politics print & online John Gallagher sales coordinator, print & online THE GOOD NEWS is that Obama has rein that policy in. McCain may Lulé Haznedari Anita Perrino the salesmanship skills and not have been qualified for the sales coordinator STANDING credit Todd J. Masura 313.446.6097 intellect to effectively lead our TALL? Barack presidency, but neither is Obama. marketing director Amy Crossman nation out of this abyss, provided Obama with He can’t even get a man in charge marketing manager Jill H. Bottomley he puts our national interest ahead Joseph Biden of the Treasury who knows how to circulation manager Andrea Richardson of political interests.Thus far, he (left) and pay his own self-employment assistant circulation manager has placed a far greater emphasis Timothy taxes. Rosalie Ford Geithner. on scoring political points and —william butler general manager, interactive maintaining the status quo than Marc Minardo tackling the problem head-on. OBAMA HAS GONE in the right web developer, interactive —larry beck direction but has been too timid Chris O’Donnell and has not yet learned how to NEW YORK PRODUCTION THE PRESIDENT is working hard to play hardball with the production and pre-press director help people, but some of the ideologically driven extremists Michael Corsi senators and representatives we who dominate the Republican advertising production manager have voted into office have been Party.The stimulus package was Suzanne Fleischman Wies

there way too long and are holding bloomberg news too small and pedestrian, and had PUBLISHED BY CRAIN COMMUNICATIONS INC. up the process.They need to be too much of a whiff of chairman Keith E. Crain removed the next time they run for out of this mess, where will these President Clinton and Rep. protectionism. Obama’s approach president Rance Crain re-election because we need fresh “critics” hide? Barney Frank had a hand in to housing has been similarly secretary Merrilee Crain new faces who believe in the —ted leibowitz creating economic and housing disappointing: $75 billion in treasurer Mary Kay Crain executive vp, operations William Morrow people and change. opportunities for the less fortunate foreclosure relief is just not enough Gloria Scoby IT IS NOT senior vp, group publisher —patricia bruhn the Bush administration’s via subprime mortgages. It was the to really turn this around. group vp, technology, circulation, fault for all that ails us. Former GOP that tried, unsuccessfully, to —david arnow manufacturing Robert C. Adams WHEN BUSH was president and vice president/production & Republicans were in control, they manufacturing David Kamis did nothing. And they’re still chief information officer Paul Dalpiaz doing nothing but mouthing off, WHAT’S COMING UP IN CRAIN’S? corporate circulation director Patrick Sheposh hoping Obama will fail. I haven’t Small Real Health 40 heard anything constructive from founder G.D. Crain Jr. (1885-1973) them.They’re lucky McCain business estate care under chairman Mrs. G.D. Crain Jr. (1911-1996) didn’t win, and they know it. Now report report report 40 they don’t have to do anything but March 9 March 16 March 23 March 30 complain. When Obama pulls us

10 | Crain’s New York Business | March 2, 2009 CNYB 03-02-09 A 11 2/26/2009 8:42 PM Page 1

and a former associate producer of 60 Minutes, attributes the program’s resurgence to Executive Producer Jeff Fager’s pursuit of breaking news. “Jeff has preserved the quality and breadth of storytelling, and he makes sure the show is topical,” Ms. Fishman says. “In serious times, people want a news source they can trust.” Mr. Fager stepped in when legendary producer Don Hewitt re- tired in 2004. He has steered 60 Minutes through not only that transition but also Mike Wallace’s retirement and Ed Bradley’s death. Instead of letting 60 Minutes fade away with the old guard, Mr. Fager enlisted stars like Ms. Logan, Anderson Cooper and Katie Couric, who have brought a fresh perspective. And he has pushed veterans like Steve Croft and Ms.Stahl to take on bigger challenges. john h.john howard Mr. Fager, former executive producer of CBS Evening News, is taking advantage of the public’s hunger for hard news and giving the program an edge it hasn’t had in years. Hitting a nerve “There’s a high level of interest in the election, the financial crisis, and the wars in Iraq and Afghanistan,” with serious news he says. “We’ve spent lot of time covering those three big stories.” Thanks to a franchise that’s been ox’s 24 started with promise this season but has left profitable for decades, Mr. Fager hasn’t had to make the kind of budg- me cold lately.Too many absurd plot twists.ABC’s et cuts that have hurt other news Desperate Housewives is another prime-time disap- outlets, including sister CBS units. pointment. He has laid off only two of 120 But one show that isn’t letting me down is 60 staffers. “We have an incredibly generous FMinutes. And I consider myself an accidental viewer. Though per-story budget,” he says.“It’s real- my husband is usually watching football or basketball, the 60 ly what you need to cover the kinds of stories we cover. It’s expensive to Minutes promos always 24 million viewers. go to Iraq and Afghanistan, but it’s grab my attention. But other episodes what we do.” When the clock starts have also attracted It’s what 60 Minutes will keep on ticking, I take my place crowds, from Lara Lo- doing. That could serve as a lesson NYPLExpress on the couch. gan’s report on to others as news outlets struggle to I’m not alone. Afghanistan to Leslie withstand the twin tsunamis of the At a time when Stahl’s sit-down with transition to the Internet and the ad The New York Public Library newspapers are falter- former Treasury Secre- downturn. ing and networks are tary Henry Paulson. In Those that maintain their stan- floundering, 60 Min- fact, 60 Minutes has dards, despite the temptation to utes’ ratings are up by ranked in the top 10 of wallow in the tabloid jungle of some 10% this season VALERIE network shows for nine celebrity fluff and sensationalism, Research and worldwide document delivery from last. BLOCK consecutive weeks. might survive—and even thrive. About half of that Elisabeth Weinrub “We produce high-quality sto- Order online or by telephone bump derives from the Fishman, associate ries that play well on the Net,” Mr. postelection interview with Barack dean of communications at Colum- Fager says. “I’m optimistic that Electronic delivery to your desktop and Michelle Obama, which drew bia University’s journalism school that’s a bright future for us.” Access information on all subjects

CRAIN’S ONLINE POLL Payment by credit card available

How has Obama handled the economic crisis so far? 481 VOTES Badly. The stimulus bill Fast, Efﬁcient, and Conﬁdential Date of poll: Feb. 24 won’t have any near- term economic impact, and his plan to fix the Very well. He banking system lacks moved quickly to 34% . details. tel: 212-592-7200 fax: 212-592-7215 get the stimulus 37% package passed, . www.nypl.org/express [email protected] and he addressed OK. He’s made strides to the housing fix the economy but crisis. needs to do more to 29% . convince Americans that the country will overcome this recession. bloomberg news For poll comments, see Page 10.

March 2, 2009 | Crain’s New York Business | 11 CNYB 03-02-09 A 12 2/27/2009 2:23 PM Page 1

however. Senate Minority Leader Dean Skelos, R-Long Island, opposes the MTA plan because THE INSIDER it has a new payroll tax in 12 downstate counties, and he has tight control of his by Erik Engquist and Matthew Sollars conference. Assessing Suozzi For whom the smorgasbord MTA plan tolls nassau county executive Tom Suozzi often campaigns outside his olitics and Metropolitan county, even though he doesn’t Transportation Authority know when or for what office he will run. Pbudget woes make strange “I have no plan,” he said bedfellows. recently. Last week, in an effort to But a Suozzi associate says he has options for 2010. One, GOVERNORS ISLAND, guv’s funding head off drastic subway fare becoming Gov. David Paterson’s increases and service cuts, running mate, is now unlikely, A CITY COUNCIL HEARING on Governors Island scheduled for last Friday was Assembly Speaker Sheldon given the governor’s plunging postponed until early April, an indication that a deal to restore the island’s operating funds may be close, an insider says. Silver, D-Manhattan, proposed approval ratings. But Mr. Suozzi could run for governor (as he did in Assembly Speaker Sheldon Silver, D-Manhattan, whose district includes tolls for the East River bridges 2006) or run against Kirsten the island, has been lobbying Gov. David Paterson to restore the roughly $7 that would be equal to the cost Gillibrand for the Senate. A bid for million needed for operations. Without that funding and a match from New of a single subway ride. attorney general is conceivable if York City, Governors Island Preservation and Education Corp., which runs the incumbent Andrew Cuomo runs for island, would be forced to shut down on April 1. governor. “Everybody kind of assumes it will be worked out, but it’s not clear Now, he is reportedly reaching Senate, Mr. Kruger will essentially Mr. Suozzi’s chances in a anybody in the governor’s office is pushing for [the funds],” says Ken Fisher, out to Senate Republicans to have veto power if there are no Democratic primary against Ms. chairman of the Governors Island Alliance. support the plan. Republican defections. Gillibrand would improve if A GIPEC spokeswoman says the agency remains hopeful that the money A spokesman for Mr. Silver Mr. Silver is targeting certain another woman splits the female will materialize. But at an Association for a Better New York breakfast last denies that any overtures have been GOP senators—Martin Golden of vote. Reps. Carolyn Maloney of Thursday, Empire State Development Corp. Chief Executive Marisa Lago made, but some Republican votes Brooklyn, Frank Padavan of Queens Manhattan and Carolyn McCarthy of sounded pessimistic. She said the island’s cost-per-visit ratio is extremely in the Senate would seem to be and Carl Marcellino of Long Long Island are pondering bids. high. She did add that if GIPEC shuts down this year, long-standing plans for a necessary in order for the proposal Island—who have transit-riding grand new park on the island could be resumed when the economy improves. to pass. Earlier in the week, Sen. constituencies.They could face a The operating budget pays for maintenance, staff and free ferry service to Carl Kruger, D-Brooklyn, described backlash if they don’t do something Cars’ illegal moves the island. Among the programs that would dissolve without funding is the the toll plan as a “nonstarter” and to solve the authority’s financial in the movies summer program, which will feature art installations and free use of bicycles. “an insult to every outer-borough crisis and prevent fares from going Cuts could also endanger construction projects on former military resident in New York City.” Since up 23%. the city Department of installations run by the National Parks Service, including a $500,000 Transportation 31 votes would kill the bill and Mr. Silver could have a tough will do more than rehabilitation of Fort Jay set to start this spring. A $5 million project to rehab there are onlysmallbizalert2_3x6.eps 32 Democrats in the 1/14/09time 5:44:59 prying PM Republicans loose, ticket taxis during its six-month Castle Williams, which could get federal stimulus money, might also be in jeopardy. If workers cannot reach the island, those funds could be reallocated to other projects in the system, a parks spokesman says.

WANT TO RECEIVE trial using cameras along the 34th Street bus lane: Sources say it will High-speed rail NEW YORK'S also use the footage to gather at terminal point? empirical data on illegal use of the NEWEST lanes by private vehicles. high-speed rail from the city to The evidence could help Buffalo should be a priority for the SMALL BUSINESS persuade the Legislature to state when it comes to stimulus authorize camera-based ticketing of spending, says Senate Majority RESOURCE? vehicles other than taxis. Nabbing Leader Malcolm Smith. But he is cabs does not require Albany’s afraid that the state won’t have permission. The Legislature has money to finish the project after long resisted video enforcement the stimulus money runs out. by localities. Currently, it allows The stimulus bill includes the city only 100 red-light $8 billion for high-speed rail cameras. Sun at times sets on Empire State a tax incentive in the federal stimulus package to boost solar SIGN UP TODAY FOR CRAIN’S energy production won’t help New York much in the short term: The

FREE SMALL BUSINESS ALERT. images: bloomberg news state’s pool of solar tax credits has This twice-weekly email will deliver news and information to run dry, and projects won’t go projects nationwide—$2 billion New York's small business community. Features will include: forward without them. less than it would cost to build a The federal incentive allows high-speed line linking New York Small business success stories • Small business breaking news • Company profiles consumers to take an up-front City, Albany and Buffalo. “Where Resources for doing business in New York grant covering as much as 30% of are we going to get $10 billion the cost of installing photovoltaics. from?” asks Senate Minority Sign up at crainsnewyork.com/signup But installers say there’s about a six- Leader Dean Skelos. month backlog of projects awaiting Tim Gilchrist, who is directing the [small business] funds. state’s stimulus spending, suggests Connecticut is in a similar bind, that New York’s share of the but work continues in New Jersey, federal money could be used to is our Business. where state money is available to eliminate bottlenecks on the fund projects. existing train line.

12 | Crain’s New York Business | March 2, 2009 CNYB 03-02-09 A 13 2/27/2009 10:47 AM Page 1

NYC TOURISM INSIDE Striking numbers show how downtown Manhattan was left out of the great boom of the past five years PAGE 14 Largest events in New York City PAGE 15 Largest hotels in New York City PAGE 16

REBRANDING NEW YORK Marketing execs share ideas.

1. It’s up to you, New York. “Playing to the idea that with such limitless options available to tourists— whether their tastes are attuned to Broadway shows or the latest in off-Broadway theater, fine dining in midtown to the best dim sum in Flushing—New York is literally something for everyone, and at any time.” —ari merkin, creative director,Toy

2. Relax. Everything is on sale. “We should take the recession and fears that New York is too expensive head-on, promoting what an incredible value the city has become lately. There’s a gut perception of New York as the ultimate indulgence and luxury—let people know that we’re the same indulgence, but at half the price.” —anne bologna, chief executive,Toy

3. Love New York all over again. “Playing on the iconic ‘I love New York,’ a campaign reminding all the people who’ve been to New York of

harry pulver jr harry pulver all the reasons to come back, featuring Sex and the City or other New York- based stars showing us around their favorite New York spots that you don’t automatically think of—Dumbo, etc.—like Shine comes off Big Apple we’re friends from out of town. —mike paul, president and creative come to the fore. in New York. In the first week of Feb- director, MGP & High prices scare tourists; some think Hotel owners and tour operators in ruary, room revenues in the city de- Associates New York say business is down by 25% clined a whopping 44%,year over year, the crash is closing the city down or more so far this year, compared with according to Mr. Fox. 4. Explore New York like the same period last year. New York re- a New Yorker. who’ve read all these stories about how mains the nation’s most popular tourist Negative side “I’d like to see a campaign BY ANDREW MARKS the financial stress is hurting the city. destination, but the decline here is out- the city has sold itself for the past promoting the city’s uniqueness at a time when Like ‘Is Broadway going to be there pacing those in other top tourist desti- five years as the place where people the world is ever-more he phones are ringing less when we get there?’ ” nations,such as Las Vegas and Orlando. could find anything their hearts de- homogenized. There’s frequently now at New York “Obviously the tourism industry is sired: the best shows, the best shop- nothing like the Macy’s on City Vacation Packages, Appeal fades hurting everywhere,but the latest num- ping and the best accommodations,al- 34th Street, even though there are and the questions the questions about the existence of bers indicate it’s hurting more here,” beit at a high price. Now, the city is hundreds of Kingston, Pa.-based tour Broadway, or how much the recession says John Fox, a vice president at Man- keeping the negative part of that im- Macy’s. A mix of operator is fielding from is hurting the high life here, may hattan-based PKF Consulting, a age as the economic crisis raises ques- celebrities and travel agents and independ- mean big trouble for New national hotel industry consult- tions about what tourists will find regular folk saying what’s unique about ent travelers have changed York City. As the na- ing firm.He points to plunging when they get here. New York to them, places dramaticallyT over the past few months. tion hunkers down RevPar numbers, a key per- Bjorn Hanson, the former head of like Orchard Street and “As recently as the summer, all any- for a long recession, formance metric for the hotel PricewaterhouseCooper’s hospitality Tompkins Square Park, up one wanted to know was how to find a there are some signs 47M industry, calculated by multi- practice and now a professor at New to Harlem and all those TOURISTS great ethnic neighborhoods decent hotel at a reasonable price in the that the city’s glitzy visited NYC last year plying a hotel’s average daily York University’s school of hospitali- in Brooklyn and Queens. city,” observes Joel Cohen, NYCVP’s appeal to tourists is Source: NYC & Company room rate by its occupancy rate. ty and tourism, has been surveying —david polinchock, president. “Now, we’ve been getting a fading as concerns about Year to date, while RevPar sank tour operators around the country chief experience officer, lot of questions from tour operators New York’s high prices 16% nationwide,it was down by 27% See BIG APPLE on Page 15 Brand Experience Lab

March 2, 2009 | Crain’s New York Business | 13 CNYB 03-02-09 A 14 2/26/2009 8:35 PM Page 1

REPORT NYC TOURISM Fortress feeling keeps downtown off beaten path

the Alliance for Downtown New the engine it once was.In 2008,Lib- While tourists have York. “I don’t think enough people erty Island hosted 733,000 fewer flooded rest of city, say that.” visitors than the 3.5 million who While the rest of the city had a came in 2000. Ellis Island is down neighborhood has record number of visitors in each of 25,000 visitors over the same period. struggled to rebound the past six years, lower Manhattan “Visitation dropped significant- has not come close to its pre-Sept. ly [after Sept. 11], and numbers are 11 numbers. In 2007, 5.9 million gradually rising,” says Tonia Best, a BY LISA FICKENSCHER visitors arrived downtown—2.7 concessions management specialist million fewer than in 2000, accord- for the two national monuments. the historic tip of Manhattan ing to the alliance. “The difference now is that we have was largely left out of the tourist security measures in place, and we boom of the past half-decade,which Fewer places to go didn’t have them [eight years ago].” brought record numbers of visitors after the loss of the World Trade The metal detectors are blamed

to New York and bathed the rest of Center Observation Deck and the for long lines to board the ferries. lindström bekka the city in cash. sealing off of the New York Stock Many tourists, according to Statue Plenty of tourists can be found Exchange, downtown also is suffer- Cruises, which operates the boats, many as 7 million visitors a year. The Museum of Jewish Heritage snapping pictures on Wall Street ing from a dearth of major destina- opt not to wait.Those who do make Even if the economy puts a major drew a record number of visitors last and at the World Trade Center site. tions.The WTC Observation Deck it over to the island are allowed into dent in the projection, the site could year, and the tiny South Street Sea- But downtown is still playing catch- attracted 1.8 million visitors annu- the base of the statue only. become one of city’s single largest port Museum more than doubled its up to its pre-Sept. 11 levels. ally, and the New York Stock Ex- There are plenty of reasons to be tourist destinations. The memorial attendance over the past eight years, Some experts blame a fortress- change, before it was closed to the hopeful that tourists will rediscover is likely to have a spillover effect on reaching a record 235,000 last year. like atmosphere created by trans- public for security reasons, was an- lower Manhattan, but the positive downtown’s smaller attractions. “It takes a lot of time to put this portation problems and security other big draw. developments are a few years away. neighborhood back together,” says measures for keeping visitors away. Just last month, the Sports Mu- The city is investing in transporta- Some good news John Haworth, director of the Na- Others point to its long-standing seum of America, which was open tion to the area. the neighborhood’s struggle to tional Museum of the American In- image problem. only eight months, closed because it In 2011, the landscape will overcome transportation problems, dian at Bowling Green, which last “The goal is to get tourists to say, was not bringing in enough visitors. change completely with the open- construction obstacles and the per- year had more than 300,000 visitors ‘I want to go to lower Manhattan,’ ” One of downtown’s biggest ing of the World Trade Center ception that it is not a happening des- for the first time since 2001.“We are says Elizabeth Berger, president of draws, the Statue of Liberty, is not Memorial. It’s expected to draw as tination have yielded some successes. getting there.”

Frank Sciame, a major down- ON THE EDGE town builder who spearheaded the Ground Zero, once again revitalization of Front Street, says, 48,000 fewer workers downtown “I know the Ground Zero develop- than before Sept. 11 Continued from Page 1 James Brown, an economist for the dential population heightens down- ment project will be built, and with bated by the fact that its recovery state Department of Labor.“It may town’s fragility. Many of the 57,000 2.7 million fewer tourists that will come a new vibrancy to the from Sept. 11 is more tenuous than turn out that whatever replaces [the residents in lower Manhattan— downtown than before Sept. 11 area.” is generally recognized. Nearly banking industry] is wonderful,but nearly double the number of 2003— 13% of downtown real estate is But the Freedom Tower and eight years after the attacks, the how it all plays out downtown is are tied to banking or insurance occupied by AIG, Merrill Lynch Larry Silverstein’s three buildings number of workers is 48,000 fewer uncertain.” jobs. and Goldman Sachs at Ground Zero are not slated to be than before then. At the same time, The residential community, the That’s because the developers finished until 2013 at the earliest, tourism in the area is also down growth of which is heralded as who rushed downtown after Sept. 12 million square feet expected and their success depends on com- from where it stood before the at- downtown’s post-Sept. 11 success 11 to take advantage of government to come on the market, excluding panies filling the space. tacks. (See related story above.) story, is also vulnerable. At the end incentives built rental properties financial services consolidation If the area loses many jobs—and Downtown’s greatest burden is of last year, the neighborhood’s va- meant to appeal to Wall Streeters 57,000 residents in lower it is still too early to know how many its reliance on the beleaguered fi- and other affluent workers who Manhattan have vanished—the retailers, al- nancial services industry. Citywide, ‘It’s never a wanted to walk to work. ready suffering from anemic con- about 12% of jobs are in financial The average household income $242,000 average household sumer spending, can’t count on the services, insurance and real estate. positive when a south of Chambers Street is income south of Chambers Street residents alone. There simply aren’t But nearly a third of the employees $242,000, but in the recession, 1/3 of all downtown jobs are tied enough of them yet. below Chambers Street are tied to dominant industry much of that income is melting to financial services, insurance Bobby Van’s Steakhouse on those industries. The three biggest away. and real estate Broad Street and Exchange Place is employers downtown—AIG, Mer- Those who don’t work in finan- trying to lure residents on the week- consolidates’ Sources: Alliance for Downtown New York, CB Richard rill Lynch and Goldman Sachs— cial services or in jobs downtown are Ellis Inc., Cushman & Wakefield Inc. ends by offering a 50% discount on occupy 13% of the commercial real less committed to the area. The its wine list at dinner. estate there. number of young families is rising, “Weekends are still not busy,” The diversification of down- but the new residents of lower Man- time,” explains Gary Malin, presi- laments Vincent Alessi, managing town—one of the cornerstones of hattan are still more apt to be recent dent of the firm. partner of the restaurant. the recovery plan for the neighbor- cancy rate of 2.2% was the highest in college graduates than people put- Mr. Krisko, owner of the All- hood—is still evolving. Manhattan. ting down roots or buying property. No sympathy this time American Diner,has been watching But new tenants can’t come Lower Manhattan’s resurgence Take Alissa Tully, for example, after sept. 11, downtown was the conversion of a 17-story build- quickly enough.In the next six years, was predicated on its becoming a who moved with two friends into a sustained by an outpouring of ing across the street from his silver more than 12 million square feet of 24/7 community, where restaurants one-bedroom apartment on West goodwill and government aid. This truck. space is expected to hit the market and bars were open late, supermar- Street, which they converted into a time around, there are no Liberty It used to be occupied by lawyers, from Ground Zero construction, kets were within walking distance three-bedroom. Bonds, grants or even warm feelings accountants and other profession- Goldman Sachs’ relocation to its and stores reflected an upwardly “I’m thinking of living here a toward the neighborhood defined by als. Now, it is in the final stages of new headquarters, and other build- mobile population. Downtown is couple of years,” says Ms. Tully, an its most famous street and largely construction work and is scheduled ing projects. Consolidation in the still a long way from fulfilling that engineer who works in midtown. perceived as the culprit behind the to reopen in April with 97 residen- banking industry will come on top of promise. In a telling sign of downtown’s recession. tial apartments. But who will rent that, and the combination will result “I like the quietness on the week- residential trajectory, Citi Habitats, With no savior stepping for- them, and at what price, is a big in a soaring vacancy rate. end,”says Mordecai Goldstein,who a residential brokerage firm, closed ward, lower Manhattan’s future will question. lives in a new residential building on its downtown office in December, depend on how many companies, Whatever comes, Mr. Krisko, Uncertain future Wall Street. “But I can’t get a pizza when its lease expired. residents and retailers stay the 57, still says he’s not going to move. “it’s never a positive when one at 10 p.m. Downtown is still unlike “Wall Street is undergoing such course. Many are pinning their “This is my last hurrah,” he says. “I of your dominant industries is con- living anywhere else in the city.” a radical change, we didn’t feel like hopes on the World Trade Center pray to God every night about this solidating and relocating,” says In fact, the makeup of the resi- locking into a long-term lease at this site development. situation.”

14 | Crain’s New York Business | March 2, 2009 CNYB 03-02-09 A 15 2/26/2009 7:32 PM Page 1

REPORT NYC TOURISM New York City’s Largest Events Ranked by number of attendees

Estimated Net sq. ft. of Rank Event Web site 2008 event dates attendees Management company exhibit space 1 New York International Auto Show www.autoshowny.com March 21-30 1,000,000 Greater New York Automobile Dealers Association 650,000 2 New York Comic Con www.nycomiccon.com April 18-20 77,000 Reed Exhibitions 95,000 3 New York City Marathon www.ingnycmarathon.org Oct. 30-Nov. 1 75,000 New York Road Runners 100,000 4 New York National Boat Show www.nyboatshow.com Dec. 13-21 70,000 National Marine Manufacturers Association n/a 5 New York International Motorcycle Show www.motorcycleshows.com Jan. 16-18, 2009 1 69,567 Advanstar Communications Inc. 107,200 6 Greater New York Dental Meeting www.gnydm.com Nov. 28-Dec. 3 57,854 Greater New York Dental Meeting 187,395 7 International Air Conditioning & Heating www.ahrexpo.com Jan. 22-24 57,649 International Exposition Co. 363,405 International Beauty Show New York/International www.ibsnewyork.com/www.iecsc.com April 27-29 50,000 Questex Media Group 175,000 8 Esthetics, Cosmetics & Spa Conference 9 AIDS Walk New York www.aidswalk.net May 18 45,000 Gay Men's Health Crisis n/m 10 New York International Gift Fair www.nyigf.com Aug. 16-21 36,000 George Little Management 610,000 New York International Gift Fair/Extracts/New York Home www.nyigf.com Feb. 1-6 36,000 George Little Management 610,000 11 Textiles Show 12 International Hotel/Motel & Restaurant Show www.ihmrs.com Nov. 8-11 34,000 George Little Management 199,376 13 American International Toy Fair www.toyfairny.com Feb. 13-20 28,255 Toy Industry Association 360,000 Medical Design & Manufacturing, EastPack, Atlantic Design www.canontradeshows.com June 3-5 27,000 Canon Communications 237,000 14 & Manufacturing, Plastec and ATX Show 15 PDN PhotoPlus International Conference + Expo www.photoplusexpo.com Oct. 22-24 27,000 Nielsen Business Media 86,000 New York City includes the Bronx, Brooklyn, Manhattan, Queens and Staten Island. Crain's New York Business uses staff research, extensive surveys and the most current information available to produce its lists, but there is no guarantee that these listings are complete. To qualify for this list, events must be held in New York City. Management companies were contacted for this list based on information from the Jacob K. Javits Convention Center and NYC & Company. Information was supplied by the management companies. In case of a tie, events are ranked by net square feet. In case those figures are tied, events are listed alphabetically. n/a Not available. n/m Not meaningful. 1-Event did not take place in 2008. Research: Denise Southwood, Maia Blume and Selena Shen ➚➚ PURCHASE CRAIN’S BUSINESS LISTS @ WWW.CRAINSNEWYORK.COM/LISTS Big Apple image

Continued from Page 13 desperate yet,” notes Ed Berkman, a about why New York has been seeing vice president at JourneyCorp Trav- a greater drop in tourism. Though el Management, a consulting firm. some city hotel managers have been Travel to the city now is 15% to voicing fears that New York is suffer- 20% less expensive for most travel- ing guilt by association because it is ers this year, says Mr. Hanson. But the home of Wall Street,Mr.Hanson average room rates remain high, at says the public’s negative view of $225 for January, according to pre- banks is not spilling over into the liminary data from PKF. streets of the world’s financial capital. Tour operators like Gray Line, “If anything, excesses on Wall whose double-decker buses ply the Street are stirring a sense of sympa- city’s streets on a daily basis, have thy for the city—lost tax revenues, begun offering deals to counter a the stress on the arts and the restau- 20% to 25% plunge in sales. Pack- rants that tourists like,” he says of ages include a free harbor cruise, a the surveys he’s done of tour opera- ticket to the Rock and Roll Hall of A SPECTACULAR PRESENTATION deserves A SPECTACULAR LOCATION. tors around the country. “That’s al- Fame and a visit with a Broadway most a mini-version of what we ex- performer for the price of its basic perienced after 9/11.” bus tour ticket last year. At the Loews Regency Hotel, Reputation for priciness room rates are being discounted by the city does have an image prob- as much as 40%.They come with ex- lem, Mr. Hanson says, but it’s pri- tras such as an “Across the Pond” marily about New York’s reputation shopping package” featuring com- for being staggeringly expensive and plimentary luggage, a free lunch for concerns the city could slip back two and a VIP discounted shopping into its grittier days. pass at Bloomingdale’s. NYC & Company, hotels and “You can’t do anything about tour operators are now busy combat- how much stronger the dollar has From the extravagance of the Grand Ballroom to the intimacy of our smaller ing that perception,trying to portray become,” observes Jonathan Tisch, conference rooms, The Roosevelt Hotel knows how to make an impression. New York as still the best—and sud- chairman of Loews Corp., who Complete with direct phone lines, PC compatibility, high-speed Internet denly a bargain. How long the headed NYC & Company in the af- access and video conferencing abilities, every meeting space is designed tourism industry will take to recast termath of Sept.11.“But we can cer- with your success in mind. itself and whether it can successfully tainly let everyone know that not compete on price are big questions. only has New York retained its Madison Avenue at East 45th Street 212.661.9600 | theroosevelthotel.com “The city’s hoteliers are respond- greatness and appeal to visitors,now ing quickly, but they’re not feeling it’s becoming a bargain.”

March 2, 2009 | Crain’s New York Business | 15 CNYB 03-02-09 A 16 2/26/2009 7:33 PM Page 1

REPORT NYC TOURISM New York City’s Largest Hotels Ranked by number of rooms

No. of meeting Corporate/ Hotel owner/ General manager/ No. of rooms/ rooms/ group No. of Year management Rank Hotel phone/Web site suites 1 square footage guest room rate 2 employees 3 founded company Selected amenities

Hilton New York Conrad Wangeman 1,980 40 n/d 1,500 1963 Hilton Hotels Corp. 4 Business center, on-site health 1335 Sixth Ave. (212) 586-7000 46 150,000 club, on-site parking 1 New York, NY 10019 www.newyork.hilton.com New York Marriott Marquis Mike J. Stengel 1,949 54 $239-$599 1,700 1985 Host Hotels & Resorts/ Business center, on-site health 1535 Broadway (212) 398-1900 57 101,450 $199-$599 Marriott International club, on-site parking 2 New York, NY 10036 www.nymarriottmarquis.com Sheraton New York Hotel and Towers Dan King 1,757 41 $399-$529 1,164 1962 HST Lessee SNY/Starwood Business center, on-site health 811 Seventh Ave. (212) 581-1000 57 60,000 $189-$549 Hotels & Resorts club, on-site parking 3 New York, NY 10019 www.sheraton.com/newyork New York's Hotel Pennsylvania James Flynn 1,700 11 $169-$289 465 1918 Vornado Realty Trust/ Off-site health club 401 Seventh Ave. (212) 736-5000 35 90,000 $139-$259 independently managed 4 New York, NY 10001 www.hotelpenn.com Grand Hyatt New York Matthew Adams 1,311 45 $289-$649 900 1980 Hyatt Hotels Corp. 4 Business center, on-site health Park Avenue at Grand Central (212) 883-1234 55 55,000 $249-$679 club, on-site parking 5 Terminal www.grandnewyork.hyatt.com New York, NY 10017 Milford Plaza Hotel Susan Ricci 1,300 0 $169-$269 300 1980 Milford Plaza Associates 4 Business center, on-site health 270 W. 45th St. (212) 869-3600 20 0 $159-$259 club 6 New York, NY 10036 www.milfordplaza.com Waldorf Astoria Eric O. Long 1,245 40 $299-$899 1,700 1931 Hilton Hotels Corp. 4 On-site health club, spa 301 Park Ave. (212) 355-3000 209 60,000 $299-$899 7 New York, NY 10022 www.waldorfnewyork.com Roosevelt Hotel John Trovato 1,015 19 $229-$449 550 1924 Roosevelt Hotel Corp. N.V./ Business center, on-site health Madison Avenue at East 45th (212) 661-9600 52 30,000 $229-$600 Interstate Hotels & Resorts club 8 Street www.theroosevelthotel.com New York, NY 10017 Park Central New York Mickey Schneider 935 10 $189-$409 388 1928 Highgate Hotels 4 Business center, on-site health 870 Seventh Ave. (212) 247-8000 20 14,314 $139-$469 club, on-site parking 9 New York, NY 10019 www.parkcentralny.com New Yorker Hotel Kevin H. Smith 912 15 $159-$289 450 1930 Holy Spirit Association/New Business center, on-site health 481 Eighth Ave. (212) 971-0101 64 25,000 $139-$339 Yorker Hotel Managment Co. club, on-site parking 10 New York, NY 10001 www.newyorkerhotel.com Edison Hotel John Canavan 900 1 $130-$200 275 1931 228 Hotel Corp. 4 Business center, on-site health 228 W. 47th St. (212) 840-5000 46 960 $165-$210 club 11 New York, NY 10036 www.edisonhotelnyc.com New York Palace Hotel Niklaus Leuenberger 892 27 n/d 1,039 1980 Dorchester Collection 4 Business center, on-site health 455 Madison Ave. (212) 888-7000 86 22,000 club, on-site parking, spa 12 New York, NY 10022 www.newyorkpalace.com Westin New York at Times Square Gerard Widder 863 32 $279-$449 550 2002 Starwood Hotels & Resorts 4 Business center, on-site health 270 W. 43rd St. (212) 201-2700 29 34,000 $229-$449 club, spa 13 New York, NY 10036 www.westinny.com Hudson Todd Scartozzi 807 10 $139-$179 600 2000 Morgans Hotel Group 4 Business center, on-site health 356 W. 58th St. (212) 554-6400 41 18,000 $129-$169 club 14 New York, NY 10019 www.hudsonhotel.com New York Helmsley Hotel Mark Briskin 775 11 $210-$345 450 1981 Helmsley Corp. 4 Business center, on-site health 212 E. 42nd St. (212) 490-8900 5 8,520 $190-$330 club, on-site parking 15 New York, NY 10017 www.newyorkhelmsley.com Crowne Plaza Times Square Gerry Hughes 5 770 32 $250-$500 500 1989 City Investment Fund/ Business center, on-site health Manhattan (212) 977-4000 12 23,000 $250-$500 InterContinental Hotels Group club, on-site parking 16 1605 Broadway www.manhattan.crowneplaza.com New York, NY 10019 Doubletree Metropolitan Hotel Brendan Moraes 760 12 n/d 316 1961 Highgate Hotels 4 Business center, on-site health 569 Lexington Ave. (212) 752-7000 24 12,000 club, on-site parking 17 New York, NY 10022 www.hiltonfamily.com/newyorkcity Le Parker Meridien New York Maurizio Bonivento 730 9 $299-$450 560 1981 Jack Parker Corp. 4 Business center, on-site health 118 W. 57th St. (212) 245-5000 221 10,000 $299-$499 club, on-site parking, spa 18 New York, NY 10019 www.parkermeridien.com Radisson Lexington Hotel New York Don Sheneman 712 3 $199-$799 200 1929 Highgate Holdings 4 Business center, on-site health 511 Lexington Ave. (212) 755-4400 40 1,026 $199-$799 club 19 New York, NY 10017 www.lexingtonhotelnyc.com Wellington Hotel Robert F. Cardillo 700 0 n/d 180 1902 Wellington Hotel Co. 4 Business center 871 Seventh Ave. (212) 247-3900 85 0 20 New York, NY 10019 www.wellingtonhotel.com W New York 6 Ed Baten 688 7 n/dn/d 1998 Host Hotels & Resorts/ Business center, on-site health 541 Lexington Ave. (212) 755-1200 61 8,388 Starwood Hotels & Resorts club, spa 21 New York, NY 10022 www.whotels.com/nyc InterContinental, The Barclay Leland M. Lewis 686 18 $239-$269 500 1926 InterContinental Hotels Business center, on-site health New York (212) 755-5900 86 13,900 $179-$249 Group 4 club 22 111 E. 48th St. www.intercontinental.com/newyork New York, NY 10017 New York Marriott at the Brooklyn Sam Ibrahim 667 25 $259-$499 405 1998 Muss Development Co./ Business center, on-site health Bridge (718) 246-7000 28 32,000 $199-$399 Marriott International club, on-site parking 23 333 Adams St. www.brooklynmarriott.com Brooklyn, NY 11201 Sheraton Manhattan at Times Dan King 665 2 $399-$529 297 1963 Starwood Hotels & Resorts 4 On-site health club, on-site Square (212) 581-3300 6 2,500 $189-$549 parking 24 790 Seventh Ave. www.sheraton.com/manhattan New York, NY 10019 New York Marriott East Side Christopher Hosmer 646 18 $299-$399 400 1924 Morgan Stanley/Marriott Business center, off-site health 525 Lexington Ave. (212) 755-4000 17 20,000 $199 -$349 International club, on-site health club, on-site 25 New York, NY 10017 www.nymarriotteastside.com parking New York City includes the five boroughs only. Crain's New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but there is no guarantee that these listings are complete. To qualify for this list, a hotel must be located in New York City. All information was supplied by the hotels. n/d Not disclosed.1-Number of roomsincludes suites. 2-As of January 2009. 3-Full-time and full-time-equivalent, asofDecember 2008. 4-Hotel owner and managementcompany are the same. 5-Acting general manager 6-Company declined to respond. All data are Crain's estimates based on other published information. Research: Denise Southwood, Maia Blume and Selena Shen ➚➚ @ WWW.CRAINSNEWYORK.COM/LISTS: PURCHASE CRAIN’S LISTS, AND SEE HOTELS LIST WITH ADDITIONAL INDUSTRY ANALYSIS 16 | Crain’s New York Business | March 2, 2009 nb09p17-18cls.qxp 2/27/09 4:25 PM Page 17

EXECUTIVE PUBLIC & LEGAL NOTICES RECRUITER POSITION AVAILABLE Notice of Qualification of FGDI, L.L.C. Notice of Qualification of FSI NY FORECLOSURE Authority filed with NY Dept. of State 1540 LLC. Authority filed with Secy. of on 1/21/09. Office location: NY County. State of NY (SSNY) on 01/15/09. Quant Trading Analyst: Princ. bus. addr.: 19901 N Dixie Hwy., Office location: New York County. LLC NOTICE OF PUBLIC SALE OF COLLATERAL Desgn high-freq trade algorthms; Anlyze Bowling Green, OH 43402. LLC formed in Delaware (DE) on markt variab to ID stat relat; Design/impl formed in DE on 8/4/00. NY Sec. of 01/13/09. Principal office of LLC and On the 25th day of March, 2009, commencing at 10:30 a.m. Eastern time, at the law trade stratgs using stat progs. Reqs: Ph.D. State designated as agent of LLC DE address is: c/o Fillmore Capital offices of Polsinelli Shughart PC, 7 Penn Plaza (370 7th Ave.), 6th Floor, New York, in Phys, Electr Eng, Math, or CS + 2 yrs exp upon whom process against it may Partners, Four Embarcadero Center, New York, certain secured parties under the Uniform Commercial Code will sell the in job offrd or 2 yrs as Quantit Stratgic be served and shall mail process to: Ste. 710, San Francisco, CA 94111. following property by public auction to the highest qualified bidder: (1) 100% of the Anlyst, Sr Anlytcs Engin, or similar in stat c/o CT Corporation System, 111 8th SSNY designated as agent of LLC Class B membership interests in RCGLV Maspeth LLC, a NY limited liability company, arbitrge trade at financ trade firm. Specfc Ave., NY, NY 10011, regd. agt. upon upon whom process against it may which owns approximately 34 condominium units located at 84 and 100 Maspeth skills: dsgn high-freq trade algorthms, C++. whom process may be served. DE be served. SSNY shall mail process Avenue, Brooklyn, NY; (2) 100% of the membership interests in McCaren Park Mews, WorldQuant LLC, New York, NY, Resumes to Crain Communications, 711 3rd addr. of LLC: The Corporation Trust to c/o Corporation Service Co., 80 LLC, a NY limited liability company, which owns approximately 121 condominium Ave, 3rd floor NY, NY 10017 Box 0189 Co., 1209 Orange St., Wilmington, DE State St., Albany, NY 12207-2543. units located at 202-226 North 11th Street, Brooklyn, NY; (3) 100% of the membership 19801. Arts. of Org. filed with DE Sec. Arts. of Org. filed with Harriet Smith interests in Waterfront Realty II LLC, a NY limited liability company, which owns a of State, 401 Federal St., Dover, DE Windsor, 401 Federal St., Dover, DE commercial and industrial property located at 462 Kent Avenue, Brooklyn, NY that is 19901. Purpose: any lawful activity. 19901. Purpose: Any lawful activity. INVESTMENT OPPORTUNITIES leased to tenants; (4) 100% of the stock in Certified Lumber Corporation, a NY corpo- Notice of Formation of GAGOSIAN ration, which owns a commercial and industrial property and operates a lumber busi- INVESTOR/PARTNER’S NOTICE OF FORMATION OF LIMIT- ness located at 484 Kent Avenue (a/k/a 1-9 Division Avenue), Brooklyn, NY; (5) 100% ED LIABILITY COMPANY. NAME: GALLERY OF LONDON LLC. Arts. of of the stock of Boro Park Home Center Corporation, a NY corporation, which owns a WANTED JAPY RESTAURANT LLC. Articles of Org. filed with Secy. of State of NY Organization were filed with the (SSNY) on 11/8/99. Office location: NY commercial property and operates a hardware/lumber/home center business located at Super Car Wash’s - Direct with Secretary of State of New York County. Principal office of LLC: 980 4601 New Utrecht Avenue, Brooklyn, NY. Builder/Operator Top Loc’s in (SSNY) on 11/16/07. The latest date Madison Ave., NY, NY 10021.The lat- The secured parties reserve the right to reject all bids and terminate or adjourn the NJ. High Volumes, Huge of dissolution is 12/31/2075. Office est date on which the LLC may dis- sale to another time or place, or to effectuate a private sale instead of a public sale, with- location: New York County. SSNY has solve is 12/31/25. SSNY designated out further publication, and further reserve the right to bid for the collateral at the sale Returns, No Risk. Investment been designated as agent of the LLC as agent of LLC upon whom process and to credit bid by applying some or all of their secured debt to the purchase price. Protected By R.E. upon whom process against it may be against it may be served. SSNY shall Interested parties who would like additional information concerning the items to $350K - $500K Necc. served. SSNY shall mail a copy of mail process to c/o Larry Gagosian, be sold at the sale and the terms and conditions of the sale, including the eligibility Gagosian Gallery, Inc. at the principal Call 908-692-6533 process to the LLC, 111 Avenue C, requirements to be a qualified bidder, should contact Daniel J. Flanigan of Polsinelli office of the LLC. As amended by Cert. New York, New York 10009. Purpose: Shughart PC, 212-644-2090, [email protected]. For any lawful purpose. of Amendment filed with SSNY on 1/28/09, name changed to GAGOSIAN WANTED GALLERY INTERNATIONAL LLC. Equity Partners/Investors - Rare Notice of Formation of Juneapple Purpose: Any lawful activity. Notice of Qualification of GS PEG Notice of Qualification of AG MORT- opportunity. Booming & profitable, Projects LLC. Articles of Organization Employee Funds VI Advisors, LLC. GAGE VALUE PARTNERS MASTER 10 year old company doing $5.0 mil+. filed with Secy. of State of NY (SSNY) Notice of Formation of 349 W 53 Authority filed with Secy. of State of NY FUND, L.P. Authority filed with Secy. Executive ground transportation on February 2, 2009. Office location: Property, LLC, Art. of Org. filed Sec’y (SSNY) on 12/31/08. Office location: of State of NY (SSNY) on 02/06/09. company seeking new growth capital. New York County. SSNY designated of State (SSNY) 12/10/08. Office NY County. LLC formed in Delaware Office location: NY County. LP formed Unlimited potential. Will do over as agent of LLC upon whom process (DE) on 12/22/08. SSNY designated in Cayman Islands on 10/28/08. location: NY County. SSNY designated 1.0 mil profit this year. against it may be served. SSNY shall as agent of LLC upon whom process as agent of LLC upon whom process Principal office of LP and Cayman mail process to the LLC, c/o Hecht & against it may be served. SSNY shall Islands address is: c/o Ogier $500 to 1.0 mil needed. against it may be served. SSNY shall Can be structured as part loan with equity. Co. P.C., 622 Third Ave, 8th Floor, mail copy of process to c/o Daniel mail process to: 85 Broad St., NY, NY Fiduciary Services (Cayman) Ltd., New York, NY, 10017. Purpose: Stav, 349 W. 53rd St., NY, NY 10019. 10004. DE address of LLC: 1209 Queensgate House, S. Church St., Call 908-692-6533 engage in any lawful act or activity. Purpose: any lawful activities. Orange St., Wilmington, DE 19801. P.O. Box 1234, George Town, Grand Cert. of Form. filed with DE Secy. of Cayman, Cayman Islands. SSNY State, P.O. Box 898, Dover, DE designated as agent of LP upon PERSONALIZED Notice of Formation of JOSLYN LEVY Notice of Qualification of Prosium 19903. Purpose: any lawful activity. whom process against it may be & ASSOCIATES LLC, a domestic Fund Management, LLC, App. for Auth. MATCHMAKING served. SSNY shall mail process to LLC. Arts. of Org. filed with the SSNY filed Sec’y of State (SSNY) 11/24/08. c/o Angelo, Gordon & Co., L.P., 245 on 12/16/08. Office location: NY Office location: NY County. LLC org. ALICIA HALEGUA STYLE LLC Park Ave., 26th Fl., NY, NY 10167. County. SSNY has been designated in DE 11/21/08. SSNY designated as Articles of Org. filed NY Sec. of State The registered agent of the company as agent upon whom process against agent of LLC upon whom process (SSNY) 9/16/08. Office in NY Co. upon whom and at which process the LLC may be served. SSNY shall against it may be served. SSNY shall SSNY desig. agent of LLC upon against the company can be served is mail a copy of process to: 230 W mail copy of process to Attn: John H. whom process may be served. SSNY Corporation Service Co., 80 State 105th St. Apt 9D, NY, NY 10025. Pettey, 111 Broadway, 10th Fl., NY, shall mail copy of process to 210 E. St., Albany, NY 12207. Name and Purpose: Any Lawful Purpose. NY 10006. DE office addr.: c/o CSC, 65th St., Unit 17L, NY, NY 10065, address of each general partner are 2711 Centerville Rd., Wilmington, DE which is also the principal business available from SSNY. Arts. of Org. 19808. Cert. of Form. on file: SSDE, location. Purpose: Any lawful purpose. Notice of Formation of 72nd STREET filed with The Registrar of Companies, Townsend Bldg., Dover, DE 19901. HOLDING LLC. Arts. of Org. filed with Ground Fl., Citrus Grove Bldg., Purpose: any lawful activities. Secy. of State of NY (SSNY) on BITS AND ATOMS, L.L.C. Art. of Org. Goring Ave., George Town, Grand 12/12/03. Office location: NY County. Filed Sec. of State NY 1/30/2009 Off. Cayman, Purpose: Any lawful activity. SSNY designated as agent of LLC NOTICE OF FORMATION of Law Loc. New York Co. SSNY designated Office of Anna E. Vira, PLLC. Art. of upon whom process against it may as agent upon whom process against Notice of formation of Limited Liability be served. SSNY shall mail process Org. filed 01/27/09 with Sec of State it may be served. SSNY to mail copy of NY (SSNY). Office in NY County. Company (LLC). Pamela Gale LLC. to the LLC, c/o Empire Mgmt., 347 of process to THE LCC c/o Anthony Articles of Organization with the Fifth Ave., 16th Fl., Ste. 1600, NY, NY SSNY designated agent for service of Townsend, 115 E 9th St, Ste. 10H, process against the PLLC with copy Secretary of State of New York (SSNY) 10016. Purpose: Any lawful activity. NY, NY, 10003. Purpose: Information on 10/17/08. N.Y. Office location: NY mailed to the PLLC: 1040 Ave. of the technology consulting services. Americas, Suite 1101, NY, NY 10018. County. SSNY has been designated PUBLIC & LEGAL Notice of Formation of NATO Purpose: law practice. as an agent upon whom process BROTHERS LLC. Arts. Of Org filed Notice of Formation of Last Voices against it may be served. The Post NOTICES with Secy. Of State of NY (SSNY) on Notice of Formation of WHEATLEIGH (USA) LLC. Arts. of Org. filed with Office address to which the SSNY 9.10.08. Office location: NY County. shall mail a copy of any process MANAGEMENT LLC. Arts. of Org. Secy. of State of NY (SSNY) on REQUEST FOR PROPOSALS SSNY designated as agent of LLC filed with Secy. of State of NY (SSNY) 11/24/08. Office location: NY County. against the LLC served upon her is upon whom process against it shall on 01/23/09. Office location: NY SSNY designated as agent of LLC C.O. the LLC. The principal address Request for Proposals be served. SSNY shall mail process: County. Principal office of LLC: 15 W. upon whom process against it may of the LLC is 1 Central Park West, NY, Joseph Rokacz, Esq. 400 West End OPERATION & MAINTENANCE 39th St., 8th Fl., NY, NY 10018. SSNY be served. SSNY shall mail process NY 10023. Purpose character of LLC: OF A HIGH-QUALITY Ave, Suite 10C, NY, NY 10021. designated as agent of LLC upon to: c/o Frankfurt Kurnit Klein & Selz, to engage in any lawful act or activity. RESTAURANT & BANQUET Purpose: any lawful activity. whom process against it may be P.C., 488 Madison Ave., 10th Fl., NY, FACILITY CURRENTLY served. SSNY shall mail process to NY 10022, Attn: Jerrold B. Spiegel, Notice of Qualification of SAVVY KNOWN AS TAVERN ON THE GREEN Notice of Qualification of Union the LLC at the address of its principal Esq. Purpose: any lawful activity. DRINKS LLC. Authority filed with All proposals submitted in response to this RFP must be Avenue Advisors LLC. Authority filed office. Purpose: All lawful purposes. Secy. of State of NY (SSNY) on submitted no later than Friday, May 1, 2009 at 3:00 with Secy. of State of NY (SSNY) on Notice of Qualification of The Catalyst 01/15/09. Office location: New York pm. Parks will hold Site Tours on Monday, March 2, County. LLC formed in Delaware (DE) 2009 and Monday, March 9, 2009, at 9:00 a.m. at the 1/16/09. Fictitious name in NY State: Notice of Qualification of H.I.G. New Credit Opportunity Fund, L.P. concession site, which is located at the corner of Central Union Avenue Advisors (GP) LLC. York , LLC. Authority filed with NY Dept. AuthorityNotice of filedQualification with NY ofDept. Antipodean of State on 01/08/09. SSNY designated as Park West and 67th Street, just inside Central Park, Office location: NY County. LLC of State on 12/16/08. Office location: onAdvisors 2/4/09. LLC Office filed location: under the NY original County. agent of LLC upon whom process Manhattan. Parks has also scheduled a Proposer Meeting on Thursday, March 19, 2009 at 10:00 am. The formed in Delaware (DE) on 1/12/09. NY County. Princ. bus. addr.: 1001 LPname formed Antipodean in DE on Capital, 6/10/03. LLC, NY App. Sec. against it may be served. SSNY shall Proposer Meeting will be held at the Arsenal, 830 Fifth SSNY designated as agent of LLC Brickell Bay Dr., Miami, Fl 33131. LLC offor State Auth. designated filed Sec’y ofas Stateagent (SSNY) of LP mail process to Patterson Belknap Avenue located just inside Central Park at 64th Street in upon whom process against it may upon12/16/08. whom Office process location: against NY itCounty. may Webb & Tyler LLP, Attn: John E. Manhattan. We will meet on the third floor in the formed in DE on 12/4/08. NY Sec. of Arsenal Gallery. All interested parties are urged to attend. be served. SSNY shall mail process State designated as agent of LLC upon beLLC served org. in and DE shall12/15/08. mail process SSNY des- to Schmeltzer III, Esq., 1133 Ave. of the Americas, NY, NY 10036. DE address For more information, contact: Gabrielle Ohayon, to princ. bus loc.: The LLC, 527 whom process against it may be theignated principal as agent business of LLC addr.: upon 767 whom Supervisor of Concession Development, NYC Parks & Madison Ave., 6th Fl., NY, NY 10022, served and shall mail process to: c/o Thirdprocess Ave., against 32nd itFl., may NY, be NY served. 10017. of LLC: c/o Corporation Service Co., Recreation, Division of Revenue and Concessions, 830 Fifth Attn: Thomas Grossman. DE address CT Corporation System, 111 8th Ave., DESSNY addr. shall of LP:mail c/o copy Incorporating of process to 2711 Centerville Rd., Ste. 400, Avenue, the Arsenal-Central Park, Room 407, New York, NY 10065 or call (212) 360-1397 or to download the RFP, visit of LLC: c/o United Corporate NY, NY 10011, regd. agt. upon whom ServicesAttn: Eric Ltd.,Chen, 3500 499 S. Park DuPont Ave., Hwy., 10th Wilmington, DE 19808. Arts. of Org. http://www. nyc.gov/parks/businessopportunities and click Services, Inc., 874 Walker Rd., Ste. process may be served. DE addr. of Dover,Fl., NY, DE NY 19901. 10010. Name/addr. DE office addr.: of c/o filed with DE Secy. of State’s Office, on the “Concessions Opportunities at Parks” link. Once you C, Dover, DE 19904. Cert. of Form. genl.CSC, ptr.2711 available Centerville from Rd., NY Wilmington, Sec. of Div. of Corporations, John G. have logged in, click on the “download” link that appears LLC: 1209 Orange St., Wilmington, DE adjacent to the RFP’s description. You can email her at filed with DE Secy. of State, 401 19801. Arts. of Org. filed with DE Sec. State.DE 19808. Cert. Cert. of LP of filed Form. with on DE file: Sec. Townsend Bldg., Federal & Duke of [email protected]. York St., Dover, DE 19901. Purpose: Federal St., Dover, DE 19901. of State , P.O. Box 898, Dover, DE ofSSDE, State, Townsend P.O. Box Bldg.,898, Dover, Dover, DE DE TELECOMMUNICATION DEVICE FOR THE DEAF (TDD) Purpose: any lawful activity. 19903. Purpose: all lawful purposes. 19903.19901. Purpose: any lawful activity.activities. Any lawful activity. 212-504-4115

March 2, 2009 | Crain’s New York Business | 17 nb09p17-18cls.qxp 2/27/09 4:26 PM Page 18

PUBLIC & LEGAL NOTICES

NOTICE OF FORMATION OF Notice of Qualification of Kondaur Notice of Qualification of MPGOP (CAYMAN) Notice of Qualification of ASHBURN- Notice of Qualification of JPMORGAN ASHURST LLP. Notice of Reg filed Ventures VII, L.L.C. Authority filed with III THRIFT AV-I L.P. Authority filed with HAM ROCK CAPITAL MANAGE- ASIA PRIVATE EQUITY FUND LLC. with NYS Dept of State Div of NY Dept. of State on 1/5/09. Office loca- Secy. of State of NY (SSNY) on 01/13/09. MENT LLC. Authority filed with Secy. Authority filed with Secy. of State of Corporations on 11/29/07. tion: NY County. LLC formed in DE on Office location: New York County. LP of State of NY (SSNY) on 01/30/09. NY (SSNY) on 01/30/09. Office loca- Jurisdiction: England & Wales. LLP 12/22/08. NY Sec. of State designated as formed in Cayman Islands on 07/24/08. Office location: NY County. LLC tion: NY County. LLC formed in registered at Companies House, agent of LLC upon whom process against Principal office of LP: 520 Madison Ave., formed in Delaware (DE) on 01/26/09. Delaware (DE) on 11/12/08. Principal London on 7/31/07. Address in it may be served and shall mail process to 35th Fl., NY, NY 10022. SSNY designated as Principal office of LLC: 455 Central office of LLC: 245 Park Ave., NY, NY England: c/o The Partnership, the principal business addr.: c/o Pequot agent of LP upon whom process against it Park West, 19C, NY, NY 10025-3847. 10167. SSNY designated as agent of Broadwalk House, 5 Appold St, Capital Management, Inc., 500 Nyala Farm may be served. SSNY shall mail process to SSNY designated as agent of LLC LLC upon whom process against it London EC2A 2HA. Office location: Rd., Westport, CT 06880. DE addr. of LLC: c/o Corporation Service Co., 80 State St., upon whom process against it may be may be served. SSNY shall mail New York County. Principal office of c/o The Corporation Trust Co., 1209 Albany, NY 12207-2543, registered agent served. SSNY shall mail process to process to c/o Corporation Service LLP: 156 W 56th St, NY, NY 10019. Orange St., Wilmington, DE 19801. Cert. upon whom and at which process may be the LLC at the principal office of the Co. (CSC), 80 State St., 6th Fl., Secretary of State of New York of Form. filed with DE Sec. of State, served. Name and address of each general LLC. DE address of LLC: Corporation Albany, NY 12207. DE address of (SSNY) designated as agent of LLP Townsend Bldg., Dover, DE 19901. partner are available from SSNY. Cayman Service Co., 2711 Centerville Rd., LLC: c/o CSC, 2711 Centerville Rd., upon whom process against it may Purpose: any lawful activity Islands address of LP: c/o Walkers SPV Ltd., Wilmington, DE 19808. Arts. of Org. Ste. 400, Wilmington, New Castle be served. SSNY shall mail process Walker House, Mary St., George Town, filed with Secy. of State of DE, Div. of Cnty., DE 19808. Arts. of Org. filed to LLP at the address of its principal Grand Cayman, Cayman Islands KY1-9002. Corps., John G. Townsend Bldg., 401 with Secy. of State of DE, Secy.of office. Purpose: Any lawful activity. NOTICE OF FORMATION OF LIMITED Arts. of Org. filed with Mr. Delano Federal St., Ste. 4, Dover, DE 19901. State Corp. Dept., Records Section, LIABILITY COMPANY. NAME: 86 Solomon, Cayman Islands Registrar of Purpose: Any lawful activity. Townsend Bldg., Loockerman & Notice is hereby given that a license, GUERNSEY, LLC. Articles of Exempted Limited Partnerships, Ground Fl., Federal St., Dover, DE 19901. Organization were filed with the Citrus Grove Bldg., Goring Ave., George Purpose: To invest in operating com- bearing serial number 1221474, for Notice of Formation of Clara Fox Restaurant Wine (includes beer) has Secretary of State of New York Town, Grand Cayman, Cayman Islands. panies and limited partnerships and (SSNY) on 07/21/08. Office location: Purpose: Any lawful activity. Ricciardi, LLC. Arts. of Org. filed with other pooled investment vehicles that been applied for by Grand Nyonya Secy. of State of NY (SSNY) on Corp. to sell Restaurant Wine New York County. SSNY has been make corporate finance and venture designated as agent of the LLC upon 1/15/09. Office location: NY County. capital investments. (includes beer) at retail in a restaurant Notice of Formation of 19 WEST 70TH SSNY designated as agent of LLC under the Alcoholic Beverage Control whom process against it may be STREET, LLC. Arts. of Org. filed with Secy. served. SSNY shall mail a copy of upon whom process against it may Law at 199 Grand Street, City, County of State of NY (SSNY) on 12/15/08. Office be served. SSNY shall mail process Notice of Formation of DIPLOMAT CEN- and State of New York for Restaurant process to the LLC, c/o Shupack & location: New York County. Principal TRE, LLC. Arts. of Org. filed with Secy. of Hardy, LLP, 450 Seventh Avenue, to: 123 Sullivan St., Unit #1, NY, NY Wine (includes beer) consumption. office of LLC: 27 W. 70th St., Apt. #2A, NY, 10012. Purpose: any lawful activity. State of NY (SSNY) on 5/31/07. Office 13th Floor, New York, New York 10123. NY 10023. SSNY designated as agent of location: New York County. Principal office Purpose: For any lawful purpose. LLC upon whom process against it may be NOTICE OF FORMATION of of LLC: 55 Fifth Ave., NY, NY 10003-4398. served. SSNY shall mail process to the Amerisphere Mortgage Finance Notice of Formation of HIP HOP USA SSNY designated as agent of LLC upon LLC, c/o James Veltri at the principal office LLC. Arts. Of Org. filed with Secy. NOTICE OF FORMATION OF StillTasty LLC. LLC, a domestic LLC. Arts. of Org. whom process against it may be served. of the LLC. Purpose: Any lawful activity. of State of N.Y. (SSNY) on Article of Organization filed with the filed with the SSNY on 12/02/08. SSNY shall mail process to Michael 11/17/08. Office location: New York Secretary of State of NY (SSNY) on Office location: NY County. SSNY has Rudder, 55 Fifth Ave., 15th Fl., NY, NY County. SSNY designated as agent 01/05/09 Office location NEW YORK Notice of formation of Limited Liability been designated as agent upon 10003-4398, registered agent upon whom of LLC upon whom process against County. SSNY has been designated as Company. Name: Wight Partners whom process against the LLC may and at which process may be served. it may be served. SSNY shall mail agent upon whom process against it may LLC. Articles of Organization filed be served. SSNY shall mail a copy of Purpose: Any lawful activity. process to: 111 Eighth Ave. NY, NY be served. The Post Office address to with the Secretary of State of New process to: Curtis Sherrod, 323 West 10011. Principal business location which the SSNY shall mail a copy of any York (SSNY) on 1/7/2009. Office 138th St., Ste 300, NY, NY 10030. NOTICE OF FORMATION of Blind 1125 South 103rd St. Omaha, NE process against the LLC served upon location: New York County. SSNY has Purpose: Any Lawful Purpose. Faith Films L.L.C. Art. of Org filed 68124. Purpose: Any lawful activity. him/her is C/O the LLC 51 West 84th been designated as agent of the LLC with Secy. Of State of N.Y. (SSNY) on 11167541 w.o. Street, Apt. 8. New York, NY 10024. upon whom process against it may Notice of Formation of NC REGENCY VIL- 10/08/08. Office location: New York Purpose of LLC: to engage in any lawful be served. SSNY shall mail a copy of LAGE II, LLC. Arts. of Org. filed with Secy. County. SSNY designated as agent act or activity. Street address of Principal process to the LLC, 150 East 93rd of State of NY (SSNY) on 01/09/09. Office of LLC upon whom process against it Notice of Qualification of 40 MERCER Business location is: 51 West 84th Street, St., #4D, NY, NY 10128. Purpose: For location: New York County. SSNY desig- may be served. SSNY shall mail GARAGE LLC. Authority filed with Secy. of Apt. 8. New York, NY 10024. any lawful purpose. nated as agent of LLC upon whom process process to principal business loca- State of NY (SSNY) on 01/08/09. Office against it may be served. SSNY shall mail tion: P.O. Box 2984, NY, NY 10163. location: New York County. LLC formed in process to c/o Cohen & Company, Inc. Delaware (DE) on 12/04/08. Principal Notice of Qualification of Antipodean Notice of Qualification of Flexion Management, LLC, App. for Auth. Real Estate, 9 E. 40th St., 10th Fl., NY, NY CUTS FOR CATS LLC, a domestic Limited office of LLC: c/o Hines Interests Limited Advisors LLC filed under the original 10016. Purpose: Any lawful activity. Liability Company (LLC) filed with the Sec Partnership, 885 Third Ave., Ste. 2700, name Antipodean Capital, LLC, App. filed Sec’y of State (SSNY) 9/5/08. Office location: NY County. LLC org. of State of NY on 11-3-08. NY Office loca- NY, NY 10022. SSNY designated as agent for Auth. filed Sec’y of State (SSNY) tion: NY County. SSNY is designated as of LLC upon whom process against it may 12/16/08. Office location: NY County. in DE 9/3/08. SSNY designated as agent of LLC upon whom process Notice of Formation of AZOTH GROUP agent upon whom process against the LLC be served. SSNY shall mail process to LLC org. in DE 12/15/08. SSNY des- LLC. Arts. of Org. filed with Secy. of State may be served. SSNY shall mail a copy of Attn: David S. Penick at the principal ignated as agent of LLC upon whom against it may be served. SSNY shall mail copy of process to 733 Third of NY (SSNY) on 01/13/09. Office loca- any process against the LLC served upon office of the LLC. DE address of LLC: process against it may be served. tion: New York County. Principal office of him/her to The LLC, 261 Fifth Ave., Ste. 2711 Centerville Rd., Ste. 400, SSNY shall mail copy of process to Ave., 11th Fl., NY, NY 10017. DE office addr.: c/o CSC, 2711 LLC: 264 W. 25th St., Apt. 3W, NY, NY 1905, NY, NY 10016. General Purposes. Wilmington, DE 19808. Arts. of Org. filed Attn: Eric Chen, 499 Park Ave., 10th 10001. SSNY designated as agent of LLC with Secy. of the State of DE, Corporation Fl., NY, NY 10010. DE office addr.: c/o Centerville Rd., Wilmington, DE 19808. Cert. of Form. on file: SSDE, upon whom process against it may be Dept., Loockerman & Federal St., Dover, CSC, 2711 Centerville Rd., Wilmington, served. SSNY shall mail process to the Notice of Qualification of Blackstone Real DE 19901. Purpose: Any lawful activity. DE 19808. Cert. of Form. on file: Townsend Bldg., Dover, DE 19901. Estate Special Situations PE Fund L.P. Purpose: any lawful activities. LLC at the address of its principal office. SSDE, Townsend Bldg., Dover, DE Purpose: Any lawful activity. Authority filed with Secy. of State of NY 19901. Purpose: any lawful activities. (SSNY) on 1/16/09. Office location: NY Notice of Qualification of Online National Notice of Formation of NFF NEW County. LP formed in Delaware (DE) on Yellow Pages, LLC. Authority filed with MARKETS FUND IX, LLC. Arts. of NOTICE OF FORMATION OF LIMITED 12/23/08. SSNY designated as agent of Secy. of State of NY (SSNY) on 1/13/09. Notice of Formation of MADISON Org. filed with Secy. of State of NY LIABILITY COMPANY.NAME: KADKENT, LP upon whom process against it may be Office location: NY County. LLC formed in HOTEL OWNERS LLC. Arts. of Org. (SSNY) on 11/20/08. Office location: LLC. Articles of Organization were served. SSNY shall mail process to: c/o Delaware (DE) on 11/5/08. SSNY designat- filed with Secy. of State of NY NY County. Principal office of LLC: filed with the Secretary of State of The Blackstone Group L.P., 345 Park Ave., ed as agent of LLC upon whom process (SSNY) on 07/08/08. Office location: 70 W. 36th St., 11th Fl., NY, NY New York (SSNY) on 07/28/08. Office NY, NY 10154. Registered Agent: CT against it may be served. SSNY shall mail NY County. Principal office of LLC: 10018. The latest date on which the location: New York County. SSNY has Corporation System, 111 Eighth Ave., NY, process to: c/o The LLC, 853 Broadway, 150 E. 52nd St., 10th Fl., NY, NY LLC may dissolve is 11/19/2058. been designated as agent of the LLC NY 10011. DE address of LP: c/o The Ste. 1101, NY, NY 10003. DE address of 10022. SSNY designated as agent of SSNY designated as agent of LLC upon whom process against it may Corporation Trust Company, 1209 Orange LLC: c/o Incorporate-US.com, Inc., 501 LLC upon whom process against it upon whom process against it may be served. SSNY shall mail a copy of St., Wilmington, DE 19801. Name/address Silverside Road, #52, Wilmington, DE may be served. SSNY shall mail be served. SSNY shall mail process process to the LLC, c/o Katan of genl. ptr. available from SSNY. Cert. of 19809. Arts. of Org. filed with DE Secy. of process to the LLC, c/o Livorno to Nonprofit Finance Fund at the prin- Developers, 592 Pacific Street, LP filed with DE Secy. of State, Federal & State, Townsend Bldg., Dover, DE 19901. Properties at the principal office of cipal office of the LLC. Purpose: Any Brooklyn, New York 11217. Purpose: Duke of York Sts., Dover, DE 19901. Purpose: any lawful activity. the LLC. Purpose: Any lawful activity. lawful activity. For any lawful purpose. Purpose: any lawful activities.

18 | Crain’s New York Business | March 2, 2009 CNYB 03-02-09 A 19 2/27/2009 6:57 PM Page 1

WEEK IN REVIEW For daily news updates, go to www.crainsnewyork.com

management groups. ECONOMIC SPOTLIGHT Bernanke nixes nationalization federal reserve Chairman Ben Bernanke came out against nationalizing banks, saying it’s not necessary for the government to take over banks to restructure them. He said moving to seize big banks such as Citigroup Inc. would destroy shareholder and bondholder value. Liz goes online gossip columnist Liz Smith penned her final column for the New York Post and moved her bloomberg news writings to the Web.The Post cited the economy when canceling the Murdoch’s right-hand man bails column. Ms. Smith, who spent 33 years writing for New York news- PETER CHERNIN (left), longtime chief operating officer of papers, will submit five columns a News Corp., said he is leaving the company. Negotiations to week to www.wowOwow.com. renew his contract as RUPERT MURDOCH’s right hand reportedly broke down over succession issues. No Jimmy’Z shops replacement has been named. … Mr. Murdoch personally surf into sunset Economy Watch apologized for a controversial New York Post editorial Inflation inched up in January, fueled by slight increases in housing as well as cartoon that some thought compared PRESIDENT BARACK teen-apparel retailer food and beverages. In December, the jobless rate was the highest in five years. Aéropostale Inc. announced plans OBAMA to a crazed chimpanzee shot dead by police. to close its 11 surf-themed NOVEMBER ’08 DECEMBER ’08 COMPARISON Jimmy’Z stores to focus on the 1 NY area inflation change -0.6% +0.2% +1.5%2 namesake chain and a new NYC unemployment rate 6.3% 7.4% 7.6%3 The Boss’ fans Bonus beans spilt concept that will target younger NYC employment change -26,400 -27,900 -49,1004 shoppers. The company expects to tackle ticket giant former merrill lynch & co. take a $5 million charge to 1-Figures are for Dec. ’08 and Jan. ’09. 2-NY area inflation rate for the latest 12-month period. Chief Executive John Thain terminate leases, liquidate 3-U.S. unemployment rate for January, the latest month. 4-NYC employment change in 2008. ticketmaster agreed to change testified about $3.6 billion in year- inventory and pay severance. its online ticket sales process after end bonuses paid to certain NYC Hotel Stats Broadway Stats angry Bruce Springsteen fans employees in December. Under a raised a ruckus over being court order, he gave New York Fordham tweaks Average hotel occupancy for the Attendance and gross climbed in redirected from the Ticketmaster Attorney General Andrew expansion plans whole of ’08 was 85.9%, slipping the week ended 2/22, The Broad- Web site to a Cuomo a list of staffers who got from 86.8% a year before, says PKF way League says. Levels are consid- subsidiary site bonuses. Bank of America CEO fordham university agreed to Consulting. But the annual average erably below those for the same week that charged Kenneth Lewis also testified. downsize the planned expansion room rate hit an all-time high of last season, which reached 251,789 more.The giant of its Upper West Side campus. $310.65, versus $302.64 in ’07. and $17.9 million, respectively. also agreed to Barneys blocked Community objections prompted pay New Jersey the alteration, which shaves $350,000 to factoring firm Hilldun Corp. 206,000 square feet from the settle the put a temporary hold on its initial proposal of 3 million square

bloomberg news matter. Barneys New York accounts to feet and lowers the height of some coax the retailer’s Dubai-based buildings.The school’s plan still owners into sharing more needs City Council approval. Port asks for information about their strategy air traffic upgrade for the chain.The move effectively Fortunoff offed stopped merchandise deliveries at the port authority of New the height of spring shipping. retail chain Fortunoff Holdings York and New Jersey started began liquidating its assets, just lobbying Congress to fund a $22 Stimulating Albany weeks after the company was billion upgrade to the nation’s air forced to file for Chapter 11 traffic control system, which was several municipal projects bankruptcy for the second time in built in the 1950s.The authority upstate will be among the first in a year. Investors failed to find a Capital IQ’s Weekly Deals Report organized a coalition of business New York to be funded by the buyer to rescue the 87-year-old groups and transportation federal stimulus package.The jewelry and gift merchant, which TRANSACTION SIZE interests to push for new initial projects list, which calls for was a favorite of brides-to-be. COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE technology, called NextGen. reconstructing the streets of —from staff reports and Tremor Media Inc. $18.0 Canaan Partners, MeriTech Capital GCI downtown Albany, includes bridge bloomberg news reports Manhattan Partners, Masthead Venture Partners, replacements, highway resurfacing European Founders Fund Recession claims and drainage developments. Lazar Levine & Felix $16.0 Parente Randolph SB M&A two more firms Manhattan Smith Barney sues Innovest Strategic Value Advisors Inc. $16.0 RiskMetrics Group Inc. SB M&A uptown partners, a co- Manhattan developer of Fifth on the Park, smith barney sued four of its Phreesia Inc. $11.6 HLM Venture Partners, Polaris Venture GCI Manhattan Partners Inc., Long River Ventures, one of Harlem’s tallest luxury former brokers and a rival broker- Sandbox Industries condominiums, filed for dealer, seeking the return of the Portero Inc. $6.6 The Grosvenor Funds, GCI bankruptcy.The company is a representatives’ client Manhattan Compagnie Financière Richemont SA, minority shareholder in the information. The company aims LFE Capital building. … Financial advisory to prevent broker flight, which Selected deals announced during the week of Feb. 15 for companies headquartered in metro New firm Trinsum Group, co-founded has become more prevalent. In the York. GCI: Growth capital investment represents new money invested in a company for a minority

by a Nobel Prize-winning fourth quarter, 970 reps and bloomberg news stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without the participation of a financial buyer. economist, also filed for advisers defected from parent FORTUNOFF began liquidating after filing bankruptcy. company Citigroup Inc.’s wealth for Chapter 11 twice in a year.

March 2, 2009 | Crain’s New York Business | 19 CNYB 03-02-09 A 20 2/26/2009 7:08 PM Page 1

SMALL BUSINESS

proach to doing business does have Tapping collaborative Koreans’ riches its downside,says John Y.Park,president of the Korean American Com- munity Empowerment Council, a growing diversity of Korean small Jackson Heights, Queens-based Thriving insurance businesses, their under-the-radar business and civic organization.“We agency demonstrates prosperity and the strength they trust each other, so we don’t shop draw from one another. around to get cheaper prices,”he says. growth of firms run “Immigrant groups have a strong Mr. Ha, for his part, has devoted network that not only helps them his working life to earning his com- by tight-knit group find jobs but also helps with their patriots’ trust. business,” says Pyong Gap Min, a He started out 17 years ago as a BY CARA S. TRAGER sociology professor at Queens Col- specialist in property and casualty lege and the author of Ethnic Soli- insurance and now employs 28 ast may, when Steve Oh ART AND SEOUL: darity for Economic Survival: Korean workers in a mini insurance empire. visited Solomon Agency Yong Hwa Ha’s Greengrocers in New York City. Mr. Ha’s business has three income Corp., he was struck by charity auction streams: nearly $14 million annual- what he saw.From its of- helped show Chubb Loyal and well-to-do ly from Solomon Agency; $9.5 mil- fice in a modest walk-up the scale of his a case in point is Spa Castle in lion from International Underwrit- Lbuilding, the Korean-owned insur- insurance business. College Point, Queens, a $22 million ing Agency, a risk-management ance agency in downtown Flushing buck ennis facility overlooking Long Island insurance firm; and $14 million not only served many successful Ko- Sound. The spa, which offers treat- from E Benefit Solution, an em- rean-owned businesses,but also was miums—which James Romanelli, nail salons and dry-cleaning stores. ments costing as much as $180 for a ployee benefits firm. firmly entrenched in the Korean- senior vice president of Chubb,views But with each others’ support, they dermabrasion, pampers a mixed About four years ago, Mr. Ha American philanthropic world. Its as a strong beginning for a firm just have gradually branched out into clientele of Americans and Asian- says, with his commercial insurance president,Yong Hwa Ha, was in the getting started in marketing such other businesses, such as travel Americans. Owner Steven Chon, business thriving thanks to its work midst of organizing a charity art insurance to the well-heeled. agencies, mortgage banks and real who has a range of other business in- with small, successful clients, he auction featuring paintings that lat- estate brokerages, and have quietly terests, relies on Mr. Ha for all his tried in vain to expand his offerings er sold for as much as $10,000 a pop. Light dawns become hugely successful. personal and commercial insurance. to Chubb’s high-end personal insur- “I was impressed by the size and “up until now, in the New York U.S. Census Bureau data show “I use Mr. Ha because he’s Kore- ance. Chubb denied his application. scale of the agency and felt that it had area, there have been rich Korean that the number of Korean-owned an, and in the community, we try to Mr. Oh’s visit, and the fundraising access to a wealthy client base,” says communities, but they have been firms nationwide rose 16.3% from help out each other and rely on each auction to benefit the Korean- Mr. Oh, a vice president of Chubb overlooked by the mainstream,” Mr. 1997 to 2002,reaching 158,000;rev- other for business,” says Mr. Chon. American Youth Foundation, later Group of Insurance Companies. Ha says. enues grew 2.2%, to $47 billion. In In fact, the majority of Mr. Ha’s helped Mr. Ha make his case. As a result,Chubb designated Sol- Since their mass immigration to 2002, New York ranked second in clients are Korean-owned business- “With over $100,000 raised omon Agency a broker for its high- New York in the 1970s, Korean- the number of Korean-owned firms, es, ranging from a restaurant chain through art at the gala, we proved end personal insurance last Novem- Americans have largely been per- with 21,135,behind only California. with 20 locations to a golf course. that there’s wealth in the Korean ber. Since then, Mr. Ha’s firm has ceived as hardworking, sometimes In many ways, the thriving Sol- “My asset is my community,”he says. community and a need for Chubb’s generated $50,000 a month in pre- struggling greengrocers or owners of omon Agency is an example of the The community’s insular ap- personal insurance,” Mr. Ha says.

REAL ESTATE DEALS

great frontage and rear-loading.” lease for Octagon. Brause Realty This is Pure Nature’s second lo- Inc.is the landlord of 52 Vanderbilt. Pfizer subtracts sublease, cation in the city. It also has a store- —amanda fung front in Ridgewood, Queens. —amanda fung On Fifth, cost cuts pulling big block off market One grand leap carry the day for a software firm investment management firm At the end of January, there was ier. Pure Nature, a health food store, Beacon Trust Co. will open its first 685 Third will house 9 million square feet of sublease signed a 15-year lease for 5,000 foliodynamix, which develops office in Manhattan next month, in staff after drugmaker space available in Manhattan, al- square feet at 30-33 Steinway St. The software for the financial services a 3,600-square-foot space at 307 most triple the amount in the year- asking rent for the ground-floor industry, has outgrown its space at Fifth Ave. merges with Wyeth earlier period, according to Cush- space was $60 a square foot. The the Graybar Building, at 420 Lex- The lease comes in the wake of man & Wakefield Inc. Leasing health club occupies 17,000 square ington Ave., and is moving into the Madison, N.J.-based company’s n a rare bit of good news for volume for the month hit the lowest feet in the building. larger quarters on the other side of purchase last year of Clear Asset the commercial real estate level in at least six years, plunging “Pure Nature chose the space for Grand Central Terminal. Management, which has a lease at a market, Pfizer Inc. is actually 47% compared with January 2008. synergy,” says Marc Durst, a broker The Manhattan-based firm, business center on Madison Avenue taking a huge block of sub- Officially, average commercial at Sholom & Zuckerbrot Realty,who which has roughly 30 employees,has at East 52nd Street.The asking rent lease space off the market. rents increased 4% versus a year ear- sublet the entire 18th floor, or 9,200 for the five-year deal at 307 Fifth, IThe pharmaceutical giant is no lier,but they were down 7% from the square feet, at 52 Vanderbilt Ave. The which covers the second floor of the longer seeking tenants for 685 Third September peak of $67.89 a square asking rent for the prebuilt,fully fur- building, was $33 a square foot. Ave., sources say, because it plans to foot, preliminary C&W data show. nished space was $58 per square foot. Beacon was drawn to its new fill its 650,000-square-foot mid- Brokers say the situation is far “They looked at other places, space because it was built out and town tower with employees it will bleaker than those figures suggest. even in New Jersey,” says Michael fully furnished. “No one wants to inherit after its merger with Wyeth, Firms actually track the rents that Berger, a broker at FirstService spend capital,” says Greg Kraut, a announced in January.Pfizer, which landlords request, but brokers note Williams who, along with colleague broker at CB Richard Ellis Inc., also owns its headquarters at 235 E. that many owners no longer cite Greg Wang, represented FolioDy- who represented Beacon. 42nd St., didn’t return a call. “asking rents” and simply say that namix. “At the end of the day, it was Jesse Rubens of Murray Hill The firm is still seeking to sublet prices are “negotiable.”Brokers esti- a compelling deal,and they preferred Properties represented the landlord, a total of about 175,000 square feet mate that rents are down roughly PURE GENIUS: Health food store Pure Nature to stay in the Grand Central area.” General Leasing & Management at 605 Third Ave. and 220 E. 42nd St. 25% from the market peak last fall. joins Planet Fitness at 30-33 Steinway St. FolioDynamix is subletting the Co. He notes that it’s unusual for an The world’s largest drug company —theresa agovino space from Octagon Credit Ser- investment firm to be located on opted to shed space in order to save vices, a Manhattan-based firm that Fifth Avenue in the lower 30s,saying money in the face of the expiration with colleague Douglas Weinstein manages leveraged loan and high- that the choice reflects a new cost- of key patents and a failure to devel- Healthy fare goes represented the tenant.Both are also yield bond assets. Octagon is con- consciousness among such firms. op new blockbuster medicines. clubbing in Queens the exclusive leasing agents for the solidating its New York offices, ac- “Investors are less concerned with Pfizer is one of many firms seek- landlord, Jenel Management Corp. cording to Mr. Berger. the prestigious address and want ing to unload space amid the deep- grabbing a healthy bite to eat af- “We showed them a couple David Hoffman and Wendy their companies managing their dol- ening recession, and that’s putting ter working out at Planet Fitness in of other spaces on the street,” re- Miller, brokers at Colliers ABR lars wisely,” Mr. Rubens says. downward pressure on rents. Astoria, Queens, is about to get eas- marks Mr. Durst. “This space had Inc., negotiated the six-year sub- —theresa agovino

20 | Crain’s New York Business | March 2, 2009 CNYB 03-02-09 A 21 2/26/2009 9:04 PM Page 1

BUSINESS TABLE TALK Food trade on the rise at Commerce in West Village PAGE 23 david neff david

GOTHAM GIGS Working on sidelines Pets in Peril JESSE ROTHSTEIN, 28, has To pay human bills, owners forgo expensive animal treatments always wanted to serve his community. His role as a program administrator at BY GALE SCOTT Up2Us, a startup nonprofit that unites sports-based youth he look on the elderly development organizations nationwide, is a perfect fit. owner’s face told Queens veterinarian Kathy Sevalla GOOD SAMARITAN After that her patient—a 2-year- graduating from Cornell in old Chihuahua—was in big 2003, Mr. Rothstein moved to trouble. When Dr. Sevalla New York to work as a sales told the owner that treat- rep for Procter & Gamble. He mentT for the tiny dog’s intestinal became regional sales manager within a few years. Last problems would cost at least $300 and October, he left the corporate maybe a lot more, the woman’s ex- world to join Up2Us. pression quickly changed from concerned to stern. PLAY BALL Mr. Rothstein is de- “She told me to put the dog to veloping the Coach for Amer- ica program, which recruits sleep,” says Dr. Sevalla. “She didn’t new college grads and retirees want to pay that much.” to coach youth sports teams Veterinarians like Dr. Sevalla are through nonprofit groups. So seeing an abrupt change in attitude far, 30 nonprofits have agreed among New York City pet owners. to launch the program. Once famous for pampering their fur- GO, TEAM! Mr. Rothstein is ry friends, they have become so preoc- confident that the organiza- cupied with paying their human bills tion will grow, despite the that they are forgoing preventive care faltering economy.“I strongly and treatment, and sometimes even believe that this is when great opting to euthanize, if it means saving opportunities and ideas rise to a bundle. the forefront,” he says. Up2Us The shift from “Do what ever it is now waiting for the outcome takes” to “Is there anything that can be of a few grant proposals. done that’s not so expensive?” is alarm- —maia blume ing for the New York City veterinary EXPERT OPINIONS community, which has boomed pre- cisely because of the large number of SPRING BREAK ON A BUDGET pet owners with plenty of money to great travel deals are spend—there are an estimated available through May.Travel 500,000 dogs and even more cats in abroad is cheaper now with the city. With 565 licensed veterinari- better exchange rates, and you See PETS on Page 22 can find inexpensive lodging in hostels and boutique hotels. Miami and Las THE STATS Vegas are fun for students and * families, and 500K there Dogs in the city are some great deals. Check out hostelworld.com and cheapflights.com for savings. For ski trips, look into places DR. ARNOLD PLOTNICK had to skip doing a full 565 you can drive to in the North- diagnostic workup on a pet Licensed veterinarians east (where a foot or two of to save the owners money. snow fell last week). in the city —patrick evans Marketing coordinator *Estimated. Source: NYC Dept. of Health and Mental Hygiene STA Travel buck ennis

March 2, 2009 | Crain’s New York Business | 21 CNYB 03-02-09 A 22 2/26/2009 9:08 PM Page 1

BUSINESS LIVES CORPORATE LADDER Dan Ronayne MSG’s new goaltender Network GM will use tems Corp.,MSG has been rebuild- ing its television programming PERSONNEL FILE parent’s sports and ever since the New York Yankees left entertainment assets the channel for the Yes Network in COMPANY MSG Networks 2002 and the Mets went to SNY in TITLE Executive vice president 2006. and general manager to rebuild ad revenues The two baseball teams took a lot of advertising dollars with AGE 51 BY MATTHEW FLAMM them. Ad revenues for MSG came RÉSUMÉ Executive vice to $99 million in 2008, down 20% hough he has been gen- from their peak in 2002, accord- president, general manager, eral manager of MSG ing to media research firm SNL Ka- Rainbow Media video-on-demand Networks for little more gan. The channels have 16 million networks; senior vice president, than a month, Dan subscribers. marketing and communications, Ronayne already seems Mr. Ronayne’s intention is to use Rainbow Sports Networks like an old hand at running the ca- all of the assets at his command, of- T PERSONALITY TYPE Determined ble television home of the New fering advertisers packages that York Rangers and the Knicks. And combine the cable channels and MANAGEMENT STYLE Hands-on that’s not just because he worked at their Web sites with digital signage other regional sports channels dur- inside and outside Madison Square ing his two decades-plus with sis- Garden. ings for some of the channels’ ter company Rainbow Media. “Advertisers can integrate their teams. A native of Detroit,Mr.Ronayne message in ways that are complete- While the Rangers are down 5%, started playing hockey at age 5. ly unique,” he says. to an average 1.06 household rating Among his earliest memories are so far this season, Knicks games recollections of watching Saturday- The Cablevision club have posted a 1.26, up 18% versus night hockey games broadcast from on the programming side, Mr. the 2007-08 season, according to Canada on the CBC. So when he Ronayne can leverage all of Cable- Nielsen Media Research. On MSG tries to sell advertisers on the unique vision’s properties, which include Plus, the New Jersey Devils’ games appeal of a sports channel like the Garden itself,Radio City Music are up 23%, to 0.38. MSG, he’s speaking from personal Hall and the Beacon Theatre,as well Mr. Ronayne already has experi- experience. as the Knicks and the Rangers. He ence finding ways to make money

“Sports fans are passionate, doesn’t see any problem mixing live from new programming plat- buck ennis deeply engaged and affluent,” Mr. sports with The 50 Greatest Moments forms. In his last job, he was in Ronayne says. He adds that they at Madison Square Garden and charge of Rainbow Media’s video- observes Josh Sapan, chief execu- hockey skates have played a role,too. tend to watch games in real time— teenybopper concert series Z100’s on-demand networks. tive of Rainbow Media. “It’s un- “In a place like this, having a without skipping through the com- Jingle Ball. Executives who have worked common to find those skills in knowledge of sports and the teams mercials. “MSG is a sports and entertain- with him say that Mr. Ronayne has one person, but Dan brings them is a very important part of your Mr. Ronayne’s passion for sports ment network,” he says. “That will the right talents for getting the most all together.” credibility,” says Michael Bair, will come in handy as he works to drive the positioning.” out of MSG. president of MSG Media, and Mr. grow advertising revenues at MSG Though he’s taking over at a “He’s able to balance a strong Knowing the ropes Ronayne’s predecessor as gen- Networks,which includes all-sports terrible time for advertising, financial approach with an ability it wasn’t just Mr. Ronayne’s skill eral manager. “I see both execu- sidekick channel MSG Plus. Mr.Ronayne at least has the advan- to reshape business opportunities at exploiting new technology that tives and employees embracing his A division of Cablevision Sys- tage of working with improved rat- when the landscape is changing,” got him the job at MSG: Those leadership.”

New York City, many vets are pay- seeking out specialists, he says. ing back student loans accrued in Meanwhile, even as they strug- Pets in peril as owners scrimp the 10 to 12 years they usually spend gle to meet their own expenses, vet- on their veterinary education. erinarians are feeling compelled to Continued from Page 21 New Yorkers who are overly in- ing on to the next test,” he says. “We love animals.No one would volunteer their services at shelters, ans, including orthopedic special- volved with their cats—just like me, Vets working in the New York work so hard and so long for these which are suddenly overwhelmed ists such as Dr. Sevalla, competing and I love them,” he says. City region typically earn about salaries otherwise,” says Dr. Pion. with former pets. for their business, some veterinary But even Dr.Plotnick had to for- $70,000 to $150,000 a year, says “We’re facing a kind of paradox. At the Brooklyn Animal Re- practices are buckling under the go performing a full diagnostic Paul Pion, who trained at Cornell We’re getting pressed to ask for less source Coalition,a no-kill shelter in strain as revenues fall. Others, workup on a cat with a urinary-tract University’s renowned veterinary money, but if we go out of business Williamsburg, longtime volunteer struggling to balance financial real- infection recently. school and founded the California- we won’t be able to provide any Kathleen Corbin says center work- ities with compassion for pets’ suf- “To save money, the owners based Veterinary Information Net- services.” ers are turning scores of people away fering, are treating some animals asked me to try one thing at a time work. In addition to covering the by phone, only to have some people for free. and see what that showed before go- high price of running a business in Couple of downers tie their pets to the center’s fence in Dr. Sevalla, for one, couldn’t the network found that 46% of the middle of the night. The aban- stand sending the Chihuahua to its vets responding to an October na- doned pets include animals with ex- death. As its owner got up to leave, STRUGGLING WITH COSTS tional survey of members reported tensive medical needs. Dr. Sevalla told her not to worry a negative change in monthly rev- Ms. Corbin says the organiza- about the money, anesthetized the PET OWNERS feel the pain of their tough decisions, too. enues.That was worse than the 29% tion recently took in a dog that dog and extracted impacted chick- Tom, a construction worker who in November chose to have his 10-year- reporting a downturn in Septem- needed surgery to repair internal en bones from its colon for free. old rottweiler Willie put down, still gets teary when talking about the dog. “He ber. Client visits were down even damage apparently caused by a dif- got bone cancer. It happened fast,” says the Brooklyn resident, who didn’t more,with 60% reporting a month- ficult birth. The dog was saved by a Making sacrifices want to give his last name. He didn’t want to see the dog linger in pain, but ly drop, versus 39% in the previous generous veterinarian who per- of course, plenty of New York pet finances also played a role in his final decision to withhold treatment. “They month. formed surgery for free. owners remain willing to sacrifice wanted $10,000 for chemo, and they couldn’t say for sure if he’d get “Large practices are seeing more “Vets are compassionate people, endless sums to keep their precious better,” he says. “It was a lot of money.” of a downturn than small ones,” Dr. and we’d love to give away our serv- animals in fine health. Misty Koons, by day a hard-working publicist in Manhattan and by night a Pion says. ices,” says Dr. Ann Hohenhaus, an Dr. Arnold Plotnick, a Manhat- nursemaid to an ailing English bulldog, has also struggled with the high costs The survey further showed that oncologist at the Animal Medical tan cat specialist, says that many of of veterinary visits. But she remains committed to keeping Molly, who has clients are postponing preventive Center on Manhattan’s Upper East his customers so far are continuing digestive problems, in treatment. That’s despite the $14,000 in bills to date. care, such as vaccinations, and that Side. “But we have fixed costs, like to put their pets’ needs above all “I can’t imagine life without her,” she says. business dropped at group practices maintenance and mortgages and else. with more than four vets. That energy bills.We’ve got little room to “My clients are crazy, neurotic probably means fewer people are negotiate.”

22 | Crain’s New York Business | March 2, 2009 CNYB 03-02-09 A 23 2/26/2009 7:28 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape Legend has it that a sea captain once built homes for two of his feuding daughters across the street from Commerce. The Food trade houses share a common garden NO LACK OF BUSINESS: where the mariner hoped Chef/partner Harold peace might reign. Whether it Moore runs an did is unknown. accomplished kitchen rises in Village at Commerce. What’s known to all comers is the restaurant’s broad-based Commerce pleases appeal, predicated on a bright COMMERCE and accomplished kitchen and with modern American 50 Commerce St. attentive, intelligent service. (between Bedford and Commerce has a happy buzz.

dishes in retro setting; Barrow streets) Meals begin with a basket gibbons catherine (212) 524-2301 of warm pretzel rolls, olive wine-tasting a plus www.commercerestaurant.com bread, focaccia, brioche and more, bird is stuffed with foie gras and anglaise; a mixed nut tart with ### baked by chef Moore’s team. bread crumbs. Golden and fragrant, caramel sauce energized by sea salt ommerce may be lag- Appetizers ($11 to $19) range it is first presented to the table, then and complemented with Cognac ice ging on many fronts, CUISINE Contemporary American from a well-dressed salad of 20 herbs carved. A young couple at a table cream; and moist, flavorful sour but not at Commerce WINES 125 choices, 19 by the glass and lettuces,mostly baby ones,tossed next to ours made short, delighted cream cheesecake surrounded by Restaurant in Green- DRESS No code with Manchego cheese, olive oil and work of the dish. marinated cherries. wich Village.The year- lemon. The high-end item is a slice If chicken doesn’t ring your Commerce’s commitment to clas- NOISE LEVEL Cling driven by Harold Moore’s up- Big of lush terrine of duck rillettes and chimes, a comforting cassoulet sic cocktails culminates in commend- scale comfort food is doing PRICE RANGE $24-$34 foie gras, for spreading with black comes from the kitchen, as well as able compositions of the Sazerac, deservedly well, thank you. WINE MARKUP 115%-250% cherry-shallot jam on toast points. hearty pastas.Coddled egg yolk and Sloe Gin Fizz and Sidecar, plus new The restaurant occupies vintage CREDIT CARDS All major In between come fluke sashimi black pepper unite spaghetti car- drinks like the Fresh Ginger Presby- space long home to Grange Hall marinated in chili and lime; sliced RESERVATIONS A must bonara, and a fresh pappardelle terian—bourbon,fresh ginger,ginger and the Blue Mill Tavern, and there rare beef tataki accented with ginger, folded with lamb ragù is richly sat- ale and lemon. I also appreciate the are whispers of both in the retro HOURS Dinner, Mon.-Thurs., 5:30- soy and shiso; and mushroom and isfying. Fettuccine layered with response to a question about a by-the- 11 p.m., Fri.-Sat., 5:30 p.m.-mid- tavern atmosphere. Chef/partner night; Brunch, Sun., 11 a.m.-4 p.m. Fontina ravioli with caramelized sal- sausage,peppers and broccoli rabe is glass wine. The server poured a taste Moore (Montrachet, Daniel, sify and a parmesan emulsion. available as either a first or a main of it for the patron, a practice that’s March) and owner Tony Zazula ####= Outstanding Chef Moore’s entrées arrive on course. growing around town. ### (Montrachet) have restored and = Excellent large white china that tends to make Halibut in a stew of sweet peas, ##= Very good fine-tuned the setting. # what’s on them look petite, to say speck ham and black truffles joins An antique wood-framed bar is = Good the least.But the cuisine is uniform- red snapper, dorade and half a worked by skilled mixologists and ly well-conceived and impeccably Maine lobster Newburg among frequented by a lively,noisy crowd of executed. Chicken is offered as ei- seafood offerings. food and drink cognoscenti. Other and subway tiles in the lounge. ther sliced breast served over broc- Desserts by pastry chef Josue design elements are chestnut The most dramatic touch is a 16- coli purée, with tiny trofie pasta and Ramos ($10) are splendid little leather-covered booths and marble by-4-foot David Joel mural titled A English cheddar cheese, or as a compositions. There’s an intense mosaic columns in the dining room Common Ground for the Sisters’ Story. whole roast chicken for two. The dark chocolate soufflé with crème

EXECUTIVE MOVES

ACCOUNTING & CONSULTING the new agency and will continue as a Gavin Anderson & Co.: Richard J. Wolff, fine artist. 56, was appointed executive chairman. James Baldi, 45, was named executive He previously was chief executive at creative director of the new agency, Huntsworth’s Global Consulting Group which he co-founded. He was formerly Inc., which he founded. creative director at Deutsch. KPMG: David J. Fourie, 34, was promoted to audit partner from senior ARCHITECTURE & DESIGN manager, audit. CetraRuddy Inc.: Emmanuelle Chammah- Elias H. Lambros, 33, was promoted to Slossberg, 37, joined as director of audit partner from senior manager, strategic development. She was formerly audit. vice president of strategic development Christopher A. Nyers, 35, was promoted at HZDG. to audit partner from senior manager, audit. EDUCATION Edward H. Repking, 31, was promoted La Guardia Community College: E. to tax partner from senior manager, tax. Ramone Segree, 59, joined as vice Timothy D. Schnall, 33, was promoted to president for institutional advancement. audit partner from senior manager, He was formerly president of Segree audit. Associates, which he founded. Douglas W. Sweeney, 34, was promoted to audit partner from senior manager, LAW audit. Gersten Savage: Paul A. Rachmuth, 43, Protiviti: Charles Soranno, 46, was was named partner. He had been of promoted to managing director from counsel at Reed Smith. director. Kilpatrick Stockton: Michelle Graham, 41, joined as counsel. She had been special ADVERTISING & COMMUNICATIONS counsel at Kelley Drye & Warren. Iris New York: Ben Weisman, 33, was WilmerHale: Sara A. Kelsey, 61, was appointed digital group head. He was appointed counsel. She formerly was formerly director of creative media general counsel at the Federal Deposit development at Deep Focus. Insurance Corp. Taxi New York: Caroline Krediet, 31, was named planning director. She previously MEDIA & ENTERTAINMENT was group planning director at Euro Epoch Films: Michael Downing, 39, was RSCG New York. named director. He was previously Warehouse: Moya Aiken, 51, co-founded director at Harvest Films. Time Inc.: Meg Doperak, 35, was named director of integrated marketing. She Find Crain’s calendar listings for The Weeks Ahead online at was formerly senior director of integrat- www.crainsnewyork.com/events ed sales and marketing at Rodale Inc.

M —maia blume

March 2, 2009 | Crain’s New York Business | 23 CN012710 1/23/09 2:02 PM Page 1

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