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.