New Guv's Budget Battles

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INSIDE HARLEM IN MICROCOSM TOP STORIES 116TH STREET’S Vornado’s pricey TRANSITION Penney gamble MIRRORS ITS NEIGHBORHOOD’S slows its shares ® PAGE 18 PAGE 2

VOL. XXVI, NO. 44 WWW.CRAINSNEWYORK.COM NOVEMBER 1-7, 2010 PRICE: $3.00 Why Dolans Danny Meyer’s recipe for closing are such down a restaurant tough cable PAGE 3 Did Citi banker trick customers client into paying too much for LBO? As Fox now sees, their PAGE 3 phone, digital, TV deal A phone company keeps users locked in steps up, lest it end up a dead ringer BY MATTHEW FLAMM SMALL BUSINESS, PAGE 16 CABLE OPERATORS have been fighting for years over carriage fees—the amount they pay to carry television networks on their systems.But there are no BUSINESS LIVES fights like the ones that involve the Brawler from Bethpage, also known as Cablevision Systems Corp. Chief Executive James Dolan and his father, Chairman Charles Dolan, refuse to back down no matter how mad it makes their customers. The latest battle, with News Corp., over payments for Fox 5 and My9, has turned into a watershed event. Those stations and three small cable channels whose contracts were also up were pulled from Cablevision Oct. 16, causing 3 million households to miss World Series and New York Gi- GOTHAM GIGS See CABLEVISION on Page 32 She’s a card-carrying clairvoyant P .. 33 ● ANNE FISHER on how to hand down the TEENS SQUARE family business P .. 33 New guv’s ● MOVERS & SHAKERS Globe-trotting producer Apparel brands swarm strip, draw crowds; budget seeks best for BAM P .. 34 crossroads’ appeal outweighs big rents ● GAEL GREENE says Olé to Bar Basque P .. 35 battles BY ADRIANNE PASQUARELLI State’s dire straits may INDEX ON A RECENT WEEKNIGHT, teens packed Aéropostale Inc.’s new Times Square flagship. Decked out in skinny jeans and Ugg boots, they scooped up graphic New make cuts possible THE INSIDER ______8 York tees and plaid flannel shirts, and twirled for the video camera that projected their VIEWPOINT with vested interests ______10 dancing silhouettes onto a 120-foot-long billboard outside. NEIGHBORHOOD JOURNAL ______12 Across the street, young pedestrians smiled and waved on competitor Forever 21’s BY ERIK ENGQUIST REAL ESTATE DEALS PLUS ______14 billboard, while a block away, shots of tweens at American Eagle Outfitters appeared CLASSIFIEDS ______28 on that retailer’s 15,000-square-foot screen. AS BUSY AS Andrew Cuomo and Carl FOR THE RECORD ______30 Welcome to Teens Square. In the past 12 months, the neighborhood has been Paladino have been in the homestretch HOT JOBS ______33 transformed into a shopping mecca as Aéropostale, American Eagle Outfitters Inc. of their gubernatorial race, the next few EXECUTIVE MOVES ______33 See TEEN SQUARE on Page 32 months will be murderous for the win-

THE WEEK AHEAD ______35 ner. Beyond the task of staffing his ad-

buck ennis ministration, New York’s new governor must take on a daunting to-do list as soon as the ballots are counted. REPORT: THE LAW BIZ First up: a $130 billion-plus budget plan,due in January,that closes a deficit New financial rules are full-employment act of at least $8 billion and achieves struc- ELECTRONIC EDITION for lawyers with regulatory experience P. 21 tural reform. More than putting figures on paper, that job requires assembling LIST: P. 25 coalitions of industry groups and legis- NEWSPAPER Area’s top law firms See NEW GUV’S on Page 32 20101101-A--0002,0003-NAT-CCI-CN_-- 10/29/2010 7:04 PM Page 1

IN BRIEF Vornado’s odd outside bets THE FINANCIAL DISTRICT AND BATTERY PARK CITY LED THE LIST OF NEIGHBORHOODS WITH the largest year-over-year rent increases, according to a report from The Real Estate weigh heavy on its shares Group NY. Average rents rose 2.8% and 2.5%, respectively, this month from last year—the largest increases among the 15 neighborhoods tracked by the firm, which releases monthly Investment in Penney, not property, seen as distracting statistics on the Manhattan rental market. Additionally, rents for one- and two-bedroom apartments showed a year-over-year BY THERESA AGOVINO improvement for the first time in more than 12 months.They are up 12% in the financial WHILE RIVALS SUCH AS SL Green Realty Corp. and district and 7% in Battery Park City, according Boston Properties have been snapping up office build- to a separate report by Downtown Alliance. ings in fierce bidding wars over the past year, Vornado Realty Trust, New York’s largest publicly traded land- TRAVEL DISCOUNTERS EXPEDIA.COM, lord, has been doing a different type of shopping. PRICELINE.COM AND OTHER ONLINE TRAVEL Since the beginning of 2010, Vornado has pur- bookers lost big when the state Supreme Court chased the ground lease on a big Atlantic City casino, dismissed their suit against a revision of the a 26% slice of mortgage-servicer LNR and a 10% stake city’s hotel tax.The suit targeted a 2009 law in mass-market retailer J.C. Penney Co. that levied a tax on their service fees and forced Vornado has always had an unconventional invest- the online agencies to provide customers with a ment strategy compared with other real estate invest- breakdown of the hotel taxes on their bill.The ment trusts. In the past, it has taken stakes in compa- court’s move means that the online bookers nies ranging from McDonald’s to Toys “R” Us. But must pay the city the full amount of the hotel experts are increasingly skeptical about the wisdom of occupancy tax they collect based upon the room that approach,particularly as Vornado prepares to spin rate quoted to customers rather than a lower off its investment in Toys “R” Us, which appears to room fee agencies might have negotiated with have been a lackluster performer. It also doesn’t help the hotel operator. City Hall estimates that the that in the past year, Vornado’s stock performance has law will generate $14 million in additional hotel ranked No.3 among the top four publicly traded land- tax revenue during the current fiscal year. Ⅲ lords with a major presence in the city. “The $64,000 question is whether these outside investments are just a distraction,”says Michael Knott,an BY THE NUMBERS analyst at Green Street Advisors. “Some of them make money, but do they really create long-term value?” Weekly shift of the city’s economy Eighty-five percent of Vornado’s earnings come from a portfolio of office and retail space that totals SOONER OR LATER, all those firms reporting robust earnings will start expanding again. In the more than 100 million square feet. The firm has be- é meantime, consumers were less gloomy, and gun lining up investors for a new, $1 billion property fewer people filed unemployment claims. fund and has hired three senior executives with expertise in real estate acquisition. Analysts suggest that those moves will likely 13.3% $2.87 2.4% strengthen Vornado’s long-term prospects in its core RISE in 3Q NYC PRICE of gallon PROPORTION of operations, but they wonder about some of its other personal income of gas in NYC as New Yorkers who tax collections, of Oct. 25, up failed workplace holdings. For example, Vornado paid $2.2 billion in vs. a year earlier, 8.3% in a month drug tests in ’09, 2005 for its Toys “R” Us stake. Analysts project that to $5B Source: Energy vs. 2.9% in ’06. the investment, whose spin-off is expected in 2011, Source: NYS Information Source: Quest See VORNADO BETS on Page 31 comptroller Administration. Diagnostics GREAT EXPECTATIONS: Chief Executive Michael Fascitelli and the IMPORTS’ SHIP COMES IN The amount of goods arriving rest of Vornado’s management team are highly respected. at the Port of New York and New Jersey has been rising all

year—another sign that the economy is on the mend. bloomberg news

25% Change, year over year 20% 15% 10% +18.1% 5% Marriott to multiply in NY 0% -5% -10% opening in a new building on Varick Mayor Michael Bloomberg spoke at -15% Chain adds 13 new -20% ’09 ’10 Street on Nov. 16. Others are in various last week’s meeting, thanking Chief Exec- A S O N D J F M A M J J A budget hotels as part of stages of development. utive J.W.Marriott Jr.for his long-term in- Source: Port Authority of NY & NJ Marriott is also scouting the city for dis- vestment in the city. global expansion, earns tinctive existing properties,like the Algon- “Marriott has been a key player in the ADDICTED TO NUMBERS? quin Hotel, which became a Marriott last city’s success,” the mayor said, referring to GET A DAILY DOSE AT @STATSANDTHECITY thanks from Mike month as part of the chain’s Au- the company’s decision to open tograph Collection. The centu- INN-COMING hotels in neighborhoods not CORRECTIONS AND CLARIFICATIONS ry-old hotel joined Marriott’s known for attracting tourists, Chef Tom Colicchio has decided not to open more Craft BY LISA FICKENSCHER powerful reservation system and including downtown Brooklyn restaurants, but his current Craft and Craft-branded locations— its rewards program;in return,it and—decades ago—Times there are nine across the U.S.—remain alive and well. His MARRIOTT LOVES 2,900 intentions were not clearly stated in the Oct. 25 article “Chef’s New York—and, accord- pays a franchise fee to Marriott. NUMBER Square. surprise.” ing to City Hall, the feeling is mutual. New York figures signifi- OF ROOMS that The 1,949-room Marquis Jane Roy was named senior director of business development at The Bethesda, Md.-based hotel com- cantly in Marriott’s aggressive turned 25 last week. It was the Traffiq. Her new title was misstated in the Oct. 18 “Executive pany unveiled plans last week to nearly expansion plans, which call for Marriott will add first hotel to open in Times Moves” column. double the number of properties it oper- 95,000 more hotel rooms in NYC by 2013 Square, back when the neigh- ates across the city by 2013. It intends to worldwide by 2013; it currently borhood was better-known as a VOL. XXVI, NO. 44, NOVEMBER 1, 2010—Crain’s New York Busi- ness (issn 8756-789x) is published weekly except for combined open 13 new budget hotels in Manhattan operates in 70 countries. While dangerous haven for drugs and issues the fourth week of June and the first week of July, the fifth to lodge some of the increasing numbers of an increase in leisure travel is helping to prostitution than as the friendly home of week of August and the first week of September, and the third and fourth weeks of December, by Crain Communications Inc., 711 tourists expected to visit the Big Apple in drive these developments, that’s not the The Lion King. Third Ave., New York, NY 10017. Periodicals postage paid at New coming years. only factor. The mayor estimates that the city will York, N.Y., and additional mailing offices. Postmaster: Send address Once completed, the hotels will add welcome a record 47.5 million visitors this changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: 2,900 rooms to Marriott’s local invento- Business demand picks up year and says that its hotel occupancy rate for Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one ry, a company official told a group of se- “WE ARE PLEASANTLY surprised by how the first six months of 2010 was 25% higher year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2010 by Crain Communications Inc. curities analysts at the Marriott Marquis strong the business demand has come than the average rate for other U.S. cities. All rights reserved. property in Times Square last week. The back,” says Dave Grissen, Marriott Inter- “Tourism is helping to lead us out of the first project, the Courtyard in SoHo, is national Inc.’s president of the Americas. recession,” Mr. Bloomberg says. Ⅲ

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Citi faces music in trial over EMI buyout

PE client claims bank dined at the Vilar Floral Hall Balconies reputation among private equity firms and atively rare and small—the biggest LBO so Restaurant,named for former New York mon- other big, wealthy clients. far this year was for $4.8 billion, according to prodded him to overpay ey manager Alberto Vilar,who earlier this year A loss also would mean that Citi and oth- Thomson Reuters, a tenth of the largest such was imprisoned for stealing from clients. er major lenders can expect to hear from more deal seen in 2007. at height of credit bubble Now,the two men can barely stand to look PE customers with billions of dollars worth at each other.For the past two weeks,Messrs. of buyers’ remorse. Among the more lamen- Even worse for the private equity biz BY AARON ELSTEIN Hands and Wormsley have battled in a Man- table boom-era LBOs that involved Citi were THE FUTURE FOR PRIVATE EQUITY could get hattan federal courtroom in an explosive civ- the $43 billion buyout of Energy Future bleaker because some big players appear to be DURING THE PAST decade’s deal-making fren- il trial that serves as a coda to Wall Street’s by- Holdings, a utility that has struggled to pay reconsidering the wisdom of investing in PE zy, Citigroup senior investment banker gone buyout-bubble era. Mr. Hands has sued debt-holders, and the $8 billion buyout of firms. They include the California Public David Wormsley helped British private equi- Citigroup for fraud, contending that hotelier Extended Stay America, which filed Employees Retirement Sys- ty overlord Guy Hands with Mr. Wormsley lied to him when he for bankruptcy last year. tem—the nation’s largest nearly 20 mergers,including said that another bidder was lurking “One thing you can be sure of is that oth- public pension fund— the $6 billion leveraged for EMI,driving Mr.Hands to make er private equity firms will sue [their lenders] which has disclosed huge buyout of music giant an unnecessarily expensive bid for a if Citi loses this case,”observes Steve Kaplan, losses in some private EMI Group in 2007. deal that quickly turned disastrous. a finance professor at the University of equity funds and will The two princes of Citi denies the charge. Chicago Graduate Scool of Business. hold meetings this week the City of London were The trial is being heard as the to discuss tweaking friends, too. They went Bad for the banks private equity business shows its investment clay-pigeon shooting on A RULING AGAINST the bank signs of reviving after a near dead strategy. weekends and vaca- from the jury, which in- stop the past two years. Thanks “It’s undeter- tioned together at Mr. cludes a doorman and a to ultra-low interest rates, less mined whether we Hands’ Tuscan estate. Catholic Charities case- creditworthy companies have will keep our cur- Before attending a worker, could be devastat- been able to raise money, and rent asset-alloca- performance of The ing. Not only might Citi U.S. junk bond sales are at tion arrangement Marriage of Figaro at be forced to pay up to $2 bil- record highs,according to the or adopt an alter- Covent Garden, lion in damages, it might have latest Bloomberg data. Still, native that may they and their wives to spend years rebuilding its leveraged buyouts remain rel- See CITI on Page 4

WHO’S GETTING PLAYED? A case that involves the $6 billion leveraged buyout of EMI—whose artists include Katy Perry, Snoop Dogg and John Lennon—offers a rare behind-the scenes look at how Wall Street dealmakers operate. newscom, bloomberg news How to close a restaurant

First shuttering in 25 years by eatery legend Danny Meyer features job fairs for staffers, special meals for suppliers

BY LISA FICKENSCHER

EACH YEAR,hundreds of city restaurants close forever,vic- tims of high rents, economic cycles and fickle diners. So it should not have come as a surprise when restau- rateur Danny Meyer announced in late September that he was pulling the plug on three-star Indian eatery Tabla, primarily because its exotic cuisine had failed to consistently draw sufficient customers. The 280-seat restaurant is the largest in an empire that includes Gramercy Tavern, Eleven Madison Park—in the same building as Tabla—and Union Square Café. Yet this is no ordinary restaurant failure.Tabla is not only Mr. Meyer’s first flameout in his 25 years in the business but was kept open long after its financial problems had become clear. “Since September 11 it’s been a struggle,” says Mr. Meyer, chief executive of Union Square Hospitality Group. “Anytime the economy took a dip or there were security concerns or bad weather, Tabla was brought to its knees.” Now the author of the best-selling Setting the Table: The Transforming Power of Hospitality in Business is raising the bar on how to shutter a restaurant by orchestrat- ing a three-month sendoff. And in a field in which employees are lucky to receive a few days’ warning that they’re losing their jobs, Mr. Meyer is going to extraor- dinary lengths to help Tabla’s 90 full-time staff find new positions before the last meal is served on Dec. 30. CLASS ACT: “The “It’s not something I necessarily want to become an measure of our company expert in,” Mr. Meyer says, laughing.“But the measure of should not just be about how we open our company should not just be about how we open restaurants,” says restaurants. We need to distinguish ourselves by how we Danny Meyer. close a place.” Restaurants typically close with little or no notice. Some skip out in the middle of the night to avoid credi-

See TABLA CLOSES on Page 31 buck ennis

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Citi faces music from EMI buyout IN THE MARKETS Continued from Page 3 company put itself up for auction, he prize.But the deal was a dud from the get us more balance against risk,” a e-mailed its chairman: “I have nego- start.EMI was heavily indebted even Aaron Elstein CalPERS spokesman says. tiated against Guy Hands … on lit- before Mr. Hands bought it, and the by Against this gloomy backdrop, erally dozens of occasions. He is very additional $4 billion borrowed from Messrs. Hands and Wormsley are quirky,and … I am absolutely certain Citi to finance the LBO was a crush- slugging it out in a case that gives a that I can deliver very serious added er. A few weeks after the deal closed, rare behind-the-scenes look at how value in any discussions with Guy.” Citi was demanding that EMI re- A car wreck, Wall Street dealmakers operate,with Trouble was, EMI’s auction fiz- structure its debt because it risked vi- both bankers and private equity zled after another private equity olating loan covenants. The music you might say chieftains engaging in the sort of firm, Cerberus Capital Manage- company posted a $2.5 billion loss in undying admiration and subsequent 2009. AST MONTH, former backstabbing that fills airport novels. Park Avenue Bank The case goes back to the last ‘We have to Possible damages: $2 billion L Chief Executive days of the buyout boom in spring IN PRIVATE, Mr.Wormsley was quite 2007. Mr. Hands’ Terra Firma In- show big love,’ candid about Mr. Hands’ deal.“The Charles Antonucci (right) vestments was eyeing EMI, the fa- a Citigroup truth is we funded a poor business pleaded guilty to mous record company and music too aggressively,” he wrote in a No- defrauding the U.S. publisher whose artists range from vember 2007 e-mail to a colleague. Coldplay and Norah Jones to Goril- banker wrote The case is expected to go to the government’s bank-bailout laz and Hot Chip. As Citi’s head of jury later this week. By the end of program. And that was just investment banking in the United last week, Judge Jed Rakoff ap- the start: He also fessed up Kingdom, Mr. Wormsley was keen peared to be skeptical of some of the to get involved in his longtime arguments presented by Mr. Hands to securities fraud, bribery client’s next deal. ment, withdrew. Yet on the evening and his legal team, led by super- and embezzlement. Mr. prior to the bid deadline,Mr.Hands lawyer David Boies. He reduced the Antonucci is scheduled to Working both sides of a deal claims in his lawsuit, Mr. Wormsley amount of damages Terra Firma be sentenced next April and “I AM INCAPABLE of not trying to get called and told him Cerberus was could collect from Citi to $2 billion 135 you to the best possible outcome,” still interested in EMI and would from $6 billion. faces up to years in he cooed in an e-mail to Mr. Hands get it unless he topped its offer. On If Mr. Hands can’t persuade the prison. But his trail of

a few months earlier. A week later, the witness stand last week, Mr. jury and the judge to grant him ma- destruction continues in a newscom he e-mailed a colleague:“We have to Wormsley, 50, dressed in a banker’s jor damages, Citi may take posses- show big love to Terra Firma.” uniform of dark suit, blue shirt and sion of EMI. New Jersey bankruptcy court,where erced”last year into accepting a $4.5 But Mr. Wormsley’s big love ap- burgundy tie,insisted that he said no “In all of these buyout situa- a former client who says he had an million loan—at a 10% interest parently had limits. After all, he was such thing. tions,” Mr. Kaplan says, “there is a awful experience with the rogue rate—even though he personally working for EMI, too. When that In any case, Mr. Hands won his heavy dose of caveat emptor.” Ⅲ banker is seeking relief. did no business with Park Avenue The case involves Martin Cadillac, Bank. Ultimately, the bank strong- a car dealer that has claimed to be armed Martin Cadillac and its own- the nation’s top seller of Escalades ers into taking $10.5 million worth yet filed for bankruptcy reorganiza- of loans, according to court docu- tion in June. Back in 2007, the deal- ments. (For the record, Mr. An- er became a Park Avenue Bank cus- tonucci has denied these allega- tomer and received a $500,000 line tions.) of credit. A year later, when all hell Park Avenue Bank was seized by was breaking loose in both the federal regulators shortly before Mr. banking and automotive worlds,the Antonucci’s arrest last March, and Technology Community line was increased to $1.5 million. its assets were taken over by Valley Then Mr. Antonucci allegedly National Bancorp,which inherited the introduced his own special flavor of mess with Martin Cadillac. In a Real Estate banking. According to a lawsuit court filing, Valley National says it filed by Martin Cadillac, he threat- “seeks to enforce the valid loan ened to cut its credit line unless the agreements.”A hearing is scheduled Leadership dealer gave him a $75,000 Escalade for Martin Cadillac’s bankruptcy and another $300,000 worth of ex- case on Nov. 8. pensive cars to members of his fam- For those keeping score,Mr.An- ily and employees. Martin Cadillac tonucci, whose bank peaked at says it had no choice but to comply about $500 million in assets in 2008, with the “extortionate demands.” is the only bank chief executive The dealership also says its chief charged with any sort of crime since executive, Timothy Martin, was “co- the financial crisis began. Fee? Fie, foes hum THE EXPECTED GOP takeover of lion over 10 years. Needless to say, at least the U.S.House of Represen- banks and their friends in Congress tatives should pay one immediate hated the proposal. dividend for banks. Odds are they’ll Well, farewell to all that. Ana- never be charged the “Financial Cri- lysts at FBR Capital Markets note sis Responsibility Fee” bandied that the government’s estimate of about just a few months ago. losses from the bailout has shrunk to M.S. in Real Estate Remember that one? The idea $50 billion from an initial forecast of was that big banks should help the $350 billion. More important, FBR The M.S. in Real Estate at NYU Schack is the most comprehensive degree program at the industry’s most respected government recoup some of the says, Republican gains in Congress costs of their $700 billion bailout by “should end any last chance it had institution of higher learning. The curriculum integrates theory with real-world application in all phases of the real Ⅲ estate deal — everything required to place you at the forefront of this dynamic eld. paying the feds as much as $117 bil- for passage.”

Information Session: Tuesday, November 9, 6–8 p.m. THE AMOUNT Visit our website for more information and to RSVP. investors have $385B poured into bond scps.nyu.edu/493 212 998 7100 funds since the start of 2009, according New York University is an afﬁrmative action/equal opportunity institution. ©2010 New York University School of Continuing and Professional Studies. Photograph by Nelson Bakerman, Photographer. to Bank of America Merrill Lynch. Over the same period, they’ve yanked $54 billion from U.S. equity funds.

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Friending NEW YORK,NEW YORK the Facebook edited by Valerie Block Generation Without Bowlmor’s memory lanes OURISTS AND NOSTALGIC LOCALS who T want a glimpse of what Alienating Times Square was like in the bad old days of drugs and prostitution can head to the new Bowlmor, which will open in three weeks in the gentrified Baby Boomers o t neighborhood of bright lights and billboards. o h kp Among the Big Apple-themed lanes, which will istoc A CRAIN'S ARTS & CULTURE BREAKFAST include Chinatown and Central Park, will be a seedy, pre-Disney version of Times Square. THURSDAY, NOVEMBER 4, 2010 “It was a challenge to appeal to sophisticated New Yorkers and visitors from outside the HILTON NEW YORK city,” says Tom Shannon, chief executive of Bowlmor owner Strike Holdings. “We decided to pay tribute to New York.” The 90,000-square-foot, two-floor facility on West 44th Street—still a construction zone— Sponsored by will be Strike Holdings’ largest of seven, and the second Manhattan Bowlmor.The first, which opened 72 years ago in Union Square, was famous in the ’80s for late nights and loud rock ’n’ roll. Bowlmor Times Square will feature a TriBeCa loft-style nightclub for cabaret and live- band karaoke, and a 220-seat sports-bar restaurant helmed by chef David Burke.The venue’s maximum occupancy is 1,300, but an optimistic Mr. Shannon ordered 1,500 pairs of bowling Are you grappling with how to capture the attention of the shoes. He’ll have to compete for those feet with nearby rivals Lucky Strike Lanes and the Facebook generation without alienating your core audience? newly christened Frames at the Port Authority. If so, you are not alone. Meeting the challenge to develop new material that will attract younger audiences and figuring Former general’s Mr. Barnett, who has also acted Arts’ boot camp for business out innovative ways to grab their attention are topic A for as Mr. Obama’s literary agent, skills—have devised a way to uphill battle could not be reached for comment. promote their work.The NYFA cultural organizations today. Daunting yes, but also a huge Boot Camp Arts Festival will take opportunity. We've asked transformational leaders Kather- DISGRACED GENERAL Stanley place from Nov. 4 through Nov. 20 ine Brown, Ken Davenport, Oskar Eustis and Peter Gelb to McChrystal (below) apparently Diners flock at 10 venues in Manhattan and wants to be remembered for to wrong Lambs Brooklyn. It will feature 38 join us for a candid and insightful discussion to share their something other than losing his writers, artists, filmmakers and recipe for success in bridging these convergent audiences job because of an interview in CALL IT A CASE of mistaken performers, among them visual to grow and evolve their businesses. Rolling Stone.The former identity. Diners seem to be artist Dionis Ortiz (below) and commander of U.S. forces in confusing The Lambs Club at the dancer Sydnie Mosley, who will Chatwal Hotel, the ambitious new present choreography she created Follow us on Twitter at @CrainsNewYork and restaurant by celebrity chef Geoffrey at Surreal Estate in Brooklyn. get tweets from the event at #artsforum. Zakarian, with theatrical Michael Royce, executive organization The Lambs, which director of NYFA, says just 55 of inhabited the West 44th Street 300 applicants were accepted into space decades ago. the program, which covered The Lambs moved to West marketing, financial planning and 51st Street in 1974, but diners seeking Mr. Zakarian’s restaurant frequently wind up at the nonprofit’s doorstep. bloomberg news “Every week, we receive calls Afghanistan, who resigned from for reservations and cancellations his post last June over comments for the restaurant,” says Randy NETWORKING BREAKFAST: COST TO ATTEND: he and his staff made that were Phillips, president (or shepherd) of 8:30am-9:00am $75 for individual tickets considered disrespectful of the venerable theater group. Not $750 for tables of ten President Barack Obama and other amused by the mix-up, he simply officials, is looking to write a book deletes the messages. Of course, PROGRAM: about leadership. this is bad news for the eatery, 9:00am-10:00am TO PURCHASE TICKETS: According to industry sources, which could be losing business. Visit crainsnewyork.com/events he and his agent, Washington, David Rabin, a partner in The PANELISTS: or fax your business card and D.C., power lawyer Robert Barnett, Lambs Club, says its name is Katherine Brown credit card information to met with several New York meant to honor the theater group’s Exec. Director, New York City Ballet "Arts & Culture Breakfast" at publishers last week. history in the landmark building, 212-210-0499. “People were impressed,” says though he concedes “there is Ken Davenport one executive, citing Mr. certainly some level of confusion.” McChrystal’s spartan lifestyle, The eatery’s website, which went Broadway Producer For more information, call the which includes eating just one live last week, could help guide ortiz dionis Events Hotline at 212-210-0739. meal a day. some stray diners into the fold. more. “The boot camp’s goal was Oskar Eustis The retired four-star general, to teach artists how to look at Artistic Director, The Public Theater You must be pre-registered to who has been teaching a course on themselves as entrepreneurs,” Mr. attend this event. leadership at Yale, may be a tough The art of Royce says. “We want to test Peter Gelb sell. Not only does he have to live promotion whether the skill sets we provided General Manager, Metropolitan Opera No refunds permitted. down last June’s events, but he was would result in anything.” also implicated in the Pat Tillman TIRED OF WAITING for galleries to cover-up after the football hero- represent them, a group of Contributors: Lisa Fickenscher, turned-Army ranger was killed by budding artists—graduates of the Matthew Flamm, Adrianne Pasquarelli, friendly fire. New York Foundation for the Miriam Kreinin Souccar

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pitched into his campaign. (He did, however, raise $212,300 from wealthy donors in the past couple of WALMART WARS Union outraged THE INSIDER weeks.) Instead,Mr.Wilson and his WALMART HAS HIRED former wife gave $188,400 to state Repub- Bloomberg campaign manager licans, presumably to help the GOP Bradley Tusk to bolster its efforts by Erik Engquist and Jeremy Smerd get voters to the polls. at establishing a foothold in New What Mr. DiNapoli lacks in York City. Mr. Tusk was hired last money (he has just $394,000 on month as a consultant “to help us hand versus Mr. Wilson’s $2.5 tell the Walmart story,” a company million), he is making up in support spokesman says. Taking stock of from public and private sector The move outraged Pat Purcell unions.The Public Employees of United Food and Commercial Workers Local 1500, which represents Federation has sent mailings, and supermarket workers and sees Walmart as a threat. UFCW endorsed Mayor SEIU 32BJ planned to recruit more Michael Bloomberg with the understanding from Mr. Tusk that the mayor the money race than 1,000 volunteers to canvass would spend no political capital to bring Walmart to the city, Mr. Purcell door-to-door and to phone its N POLITICS claims. “I find it shocking he would turn around and take them on as a client,” , money speaks members on the Democrat’s behalf. Mr. Purcell says. Eric Schneiderman louder than words. And last- Democrat has Walmart’s spokesman says it is evaluating “opportunities” across the city raised nearly four times as much to open stores, reiterating recent comments by Bill Simon, the company’s minute money may speak money as Republican Daniel chief executive in the U.S., who talked about a flexible approach to urban loudest, especially in a close Donovan, thanks in part to last- markets that could see smaller stores instead of the trademark big-box. minute checks from his father race. Even without a physical presence in the city, Walmart is making inroads. For anyone doubting Republican ($100,000) and the partners at the I law firm of Assembly Speaker Recently, it began allowing customers free shipping of goods bought on Carl Paladino Paladino ’s resolve to be the next Cuomo Sheldon Silver ($200,000 total). Walmart.com to Fed Ex locations citywide as well as in Los Angeles, Boston, governor, just look at the $3.1 Despite the funding advantage, Mr. Chicago and Washington, D.C. million from his personal fortune Schneiderman led the attorney Walmart’s spokesman says Mr. Tusk was hired because of his “strong relationships” with city officials but has not yet talked to its most powerful he’s sunk into his campaign in the general’s race by just 7 percentage points in an Oct. 20 poll. opponent: labor. “We’re a nonunion retailer,” he says. “That hasn’t changed.” past 10 days. Still, that is unlikely to State Senate Republicans, be enough to catch Democrat looking to win back the majority Andrew Cuomo, who leads Mr. they lost in 2008, gave $100,000 on Legislator Tim Kennedy.The GOP promotes fiscal conservatism. Oct. 19 to former City Councilman gave Mr. Quinn $50,000 on Oct. Paladino in polls and cash, with Anthony Como, who is taking on state 15, then doubled-down with Wilson more than $12 million on hand DiNapoli Sen. Joseph Addabbo. Republicans $100,000 a week later. Grassroots before Tuesday’s election. have spent more than $240,000 on In the final weeks of a campaign or Astroturf? Republican Harry Wilson trails Mr. Como. When an investigation to unseat longtime Republican state Thomas into the Aqueduct developer Sen. Frank Padavan, Democrats gave IN A FUNDRAISING e-mail sent last Democratic Comptroller selection process ensnared his $180,000 to Tony Avella, a former week on behalf of Sen. Kirsten DiNapoli in the polls by as much as Democratic opponent Oct. 21, the Queens city councilman.The Gillibrand, Bill Clinton derided the Tea 17 percentage points. Yet as of GOP kicked in $10,000 more. money, though, may not be enough Party movement as “a combination Friday, Mr. Wilson had not spent In Buffalo, Senate Republicans to overcome the 37-year of wealthy special interests and are putting their last-minute money incumbency of Mr. Padavan. right-wing ideologues any more of his personal wealth on Jack Quinn, an Assemblyman masquerading as populists.” But by

photos: buck ennis, bloomberg news,Schneiderman newscom than the $3.85 million he’s already Donovan running against Erie County definition, political movements State of 2 minds begin as populist and then become on debit cards more structured, says Pace University political science STATE COMPTROLLER Thomas professor Christopher Malone.The Market Leadership in Action DiNapoli rejected a contract last week “wealthy special interests and right- that would have allowed the state to wing ideologues” like Dick Armey issue next year’s tax refunds on debit and brothers Charles and David Koch cards. But the state allows have latched on to “populist anger Market Leadership begins with a commitment unemployment benefits to be issued at federal spending,” Mr. Malone to recruit and retain the best people via Chase debit cards, a move says.The Internet and 24/7 media approved in 2006 by Mr. DiNapoli’s hastened the Tea Party’s evolution predecessor, Alan Hevesi. Mr. from a grassroots backlash to an To deliver the best insight, advice and results in the business DiNapoli says the new contract, organized, well-funded operation, which would have saved the state says Kenneth Sherrill, professor of about $3 million a year and was political science at Hunter College. Market Leadership begins with Cassidy Turley approved by Attorney General Andrew Cuomo, would result in bank fees for taxpayers. Republicans’ tax allergy

Delivered 15,000 turn-key client locations in 15 years DioGuardi TWO COLUMBIA researchers have won’t let up documented just how toxic the Provide integrated services to 25,000 client locations word “tax” is to Republican voters. LAST WEEK, Joseph DioGuardi traveled In a study, Eric Johnson and Elke Manage over 420 million square feet on behalf of private, the state in an RV, trying to make Weber, co-directors of Columbia institutional and corporate clients up what he lacks in TV money. Business School’s Center of “This is a race that will be close at Decision Sciences, asked 898 Completed transactions valued at over the finish,” he says. “I can feel it in Americans if they would pay a $13 billion in 2009 my bones.” Nonstop campaigning voluntary fee when buying gas, is not an issue for the 70-year-old, electricity, computers or airline who says he made the race tickets to fund carbon reduction. competitive: “Now it’s up to the Whether the fee was described as a For more information on how Cassidy Turley is cassidyturley.com people.” He pledges, “I’ll be an “carbon tax” or a “carbon offset,” growing market activist as a senator or a citizen.” If about 65% of Democrats said they leaders, contact: Peter B. Hennessy President, New York Tri-state he loses, he plans to focus on his would pay it. A similar percentage [email protected] human rights campaign, the of Republicans also said they would Albanian American Civic League, pay for a carbon offset. But when it and Truth in Government, an was called a carbon tax, only 27% of organization he founded that Republicans said they would pay. Ⅲ

CAPITAL MARKETS CORPORATE SERVICES PROJECT & DEVELOPMENT SERVICES PROJECT LEASING PROPERTY MANAGEMENT TENANT REPRESENTATION For daily political and government news, subscribe to © 2010 Cassidy Turley CRAIN’S INSIDER @ www.crainsnewyork.com/insider

8 | Crain’s New York Business | November 1, 2010 CN013879 8/17/10 1:26 PM Page 1

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VIEWPOINT Wanted: honest state senators editor in chief Rance Crain publisher, vp Jill R. Kaplan NE HONEST SENATOR. Is that too much restore New Yorkers’ faith in state government. It didn’t EDITORIAL to ask? happen.They implemented some modest but worthy editor Xana Antunes New Yorkers’ trust in their state reforms, but their rookie season was marred by the self- managing editor Glenn Coleman deputy managing editors Valerie Block, Legislature has eroded steadily over the dealing of several rogue members, notably Pedro Espada Jr. Erik Ipsen contributing editors years.The Assembly has yet to shake its and Hiram Monserrate.The Democratic duo’s treachery Elizabeth MacBride, Elaine Pofeldt reputation as beholden to trial lawyers, triggered a legislative paralysis that embarrassed the state columnists Greg David, Alair Townsend politics editor Erik Engquist organized labor and other special and cost Malcolm Smith his conference leadership. pulse editor Barbara Benson interests, but much of the public’s recent dismay with Albany Into Mr. Smith’s job stepped John Sampson, a Brooklyn senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, can be traced to the upper chamber. lawyer who had the trust of his fellow Democrats but not yet Matthew Flamm, Miriam Kreinin Souccar O Marine Cole, Amanda Fung, reporters In the latest blow to the state Senate’s reputation, an of the public.The chances of his earning it now are slim, as Daniel Massey, Adrianne Pasquarelli, investigation by the inspector general has found that Senate he absorbs the Aqueduct report’s most withering criticism. Hilary Potkewitz, Jeremy Smerd art director Steven Krupinski Democrats (and others) made a mockery of the bidding for a Incredibly, Mr. Sampson deputy art directors Carolyn McClain, gambling venture at Aqueduct Racetrack. Cronyism and CRAIN’S ENDORSES was unable to provide Daniel Mednick staff photographer Buck Ennis campaign donations were elevated over the public interest as FOR GOVERNOR investigators with copy desk chief Wendy Zuckerman a low-rated proposal was selected as the winner.The important details of the copy editor Thaddeus Rutkowski ★ Andrew Cuomo research editor Denise Southwood inspector general’s report was shocking even to outsiders recent selection process; editorial interns Brian Chappatta, FOR STATE COMPTROLLER David Montalvo, Laura Mortkowitz, Suzanne Panara who had smelled a rat—this page included. the inspector general says www.crainsnewyork.com That winner has since been disqualified and another ★ Harry Wilson he stopped counting the senior producer Elisabeth Butler Cordova selected, but the findings were a major blow to the Senate’s producer Kira Bindrim FOR U.S. SENATOR Senate leader’s repetitions reputation, which was already ragged. For four decades of “I don’t recall” when EDITORIAL AND ADVERTISING OFFICES ★ through 2008, the chamber was controlled by Republicans Kirsten Gillibrand the number reached 100. 711 Third Ave., New York, NY 10017-5806 ★ editorial: 212.210.0277 Fax 212.210.0799 who increasingly placed self-preservation ahead of principle. Charles Schumer What are voters to do? advertising: 212.210.0259 Cable craincom nyk They cut redistricting deals with Assembly Democrats to Keeping the Senate in Fax 212.210.0499 create an incumbent protection program and lavished untold Democratic hands would condone such behavior. But return- Entire contents ©copyright 2010 Crain Communications Inc. All rights reserved. billions on an expansive staff, pet projects, half-empty ing the Senate to Republican control wouldn’t change the cul- ®CityBusiness is a registered trademark of MCP prisons, a secret video production operation, trips on the ture.The GOP conference consists of the old boys’ network Inc., used under license agreement. state plane and country-club school districts. that ran the Senate as a fiefdom and conspired with scoundrels TO SUBSCRIBE: If Senate Republicans’ drunken-sailor spending wasn’t like Messrs. Monserrate and Espada to snatch it back. Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. enough to drive voters to the liquor cabinet, along came the Our best recommendation for Election Day is that voters www.crainsnewyork.com

revelation that their leader, Joseph Bruno, had turned his choose Senate candidates they consider to have the most ADVERTISING AND MARKETING public post into a private consulting business. It took a integrity, then demand a bipartisan effort to reform Albany. advertising director Trish Henry federal prosecution to finally show him the door. They can begin by insisting on independent redistricting, senior account managers Irene Bar-Am, Courtney McCombs, William E. Squitieri The Democrats took over the Senate last year, pledging to campaign finance reform and a strong ethics bill in 2011. account executive Anthony Mowad sales manager, classified print & online John Gallagher sales coordinator, print & online Lulé Haznedari CRAIN’SOMENT ONLINE POLL C S newsletter product manager Alexis Sinclair credit Todd J. Masura 313.446.6097 SHOULD CABLEVISION marketing director Amy Crossman assistant marketing manager GIVE UP ITS FIGHT WITH Sabra Harrison Seeing through ‘2nd look’ director, audience development FOX OVER FEES? John LaMarca BIG LENDERS’ PROGRAMS LIGHT AT BEGINNING senior audience development manager Date of poll: Oct. 27 A MARKETING PLOY OF THE TUNNEL Tarek Cotran 255 votes general manager, interactive THE NEW YORK FED RECENTLY conducted a IT IS STUNNING TO THINK that at a time when Marc Minardo Yes. Fox survey of small business owners that found that the economy is as stagnant as rush-hour web developer, interactive has quality only half of the respondents that applied for traffic into Manhattan, New Jersey Gov. Chris Chris O’Donnell

programming . 25% credit had received funding, despite previous Christie would kill the $8.7 billion Trans- NEW YORK PRODUCTION and deserves borrowing success. (“ ‘Second look’ could help Hudson Tunnel (Opinion, Oct. 18). more money from borrowers,” Oct. 18.) His fear: cost overruns and a promise not production and pre-press director Cablevision. Michael Corsi With fanfare, a number of large lenders to raise taxes. Because Mr. Christie is saying advertising production manager

announced that they would institute second no, we may all find ourselves paying a much Suzanne Fleischman Wies 75%. look programs to determine if applicants denied higher price. credit could become viable borrowers. In many Mr. Christie is also turning his back on PUBLISHED BY CRAIN COMMUNICATIONS INC. cases, it is just a marketing ploy.The big banks 6,000 much-needed construction jobs, 42,000 chairman Keith E. Crain are simply telling people what they want to hear permanent jobs, tens of thousands of New Jer- president Rance Crain No. Cablevision should hold fast secretary Merrilee Crain on pricing so it doesn’t have to while they continue to deny credit to small sey commuters, the environment, and the eco- treasurer Mary Kay Crain pass on higher costs to its business owners. nomic future for everyone one both sides of executive vp, operations William Morrow customers. In my experience, small businesses are the Hudson. senior vp, group publisher Gloria Scoby finding greater success in securing funding —james callahan group vp, technology, circulation, manufacturing Robert C. Adams from lenders such as community banks, credit President vice president/production & unions and micro-lenders. New York City Coalition manufacturing David Kamis The grassroots nature of local lending is a of International Union of Operating Engineers chief information officer Paul Dalpiaz VS. rich alternative to the automated banking corporate circulation/audience development director Kathy Henry processes that are partly responsible for the CRAIN’S WELCOMES SUBMISSIONS to its opinion recent economic downturn. pages. Send letters to [email protected]. founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: Go to —rohit arora Send columns of 475 words or fewer to www.crainsnewyork.com/poll to have your say. Co-founder and chief executive [email protected]. Please include the writer’s Biz2Credit name, company, address and telephone number.

10 | Crain’s New York Business | November 1, 2010 20101101-A--0011-NAT-CCI-CN_-- 10/28/2010 7:31 PM Page 1

OPINION

test scores, which eliminated many of the gains he and the mayor had Mayor’s agenda trumpeted. But he could be helped by the growing recognition of the role that teachers unions play in keeping schools mediocre. The taking shape mayor and his chancellor must re- gain momentum on the issue. Not far behind on the to-do list HE SPOTLIGHT IN New York is shining brightest on are the mayor’s economic develop- Albany, where Tuesday’s election will bring a new ment initiatives. Deputy Mayor political equation and a governor with an ambi- Robert Steel will make his first ma- tious agenda to reform the ethics of state govern- jor policy speech in early December, which should indicate whether he ment, reduce its size and spending, and end both has any plans to adjust the strategy Tdysfunction and economic stagnation. The story of what An- he was bequeathed: many small ef- drew Cuomo does and how much he accomplishes will be the forts to foster diversification while seeking to continue big develop- biggest story of the coming year. ment projects. With the signals growing clearer Back in the city, space and sell off scores that Walmart is about to acknowl- though, the mayor is of city-owned proper- edge it will seek to open its first New working on important ties. The biggest task is York City store, Mr. Steel and the issues, too. He may not controlling pension and mayor will face a test.They will have have articulated much of retiree health care costs, to decide whether to take the polit- a third-term agenda dur- which are rising so fast ically expedient path of staying on ing his campaign,but he that they will cripple the sidelines in the war over Wal- has developed one, and the city. mart or enter it to support Walmart, it’s on the ambitious side. Education remains since the mayor believes that the The overriding pri- at the center of the megaretailer is important to the ority is being called mayor’s plans. Chan- city’s future. “structural reform.’’ GREG cellor Joel Klein is The widespread coverage of re- Some of the work being DAVID about to enter his 10th newed speculation on whether Mr. done by deputy mayor year on the job and Bloomberg will run for president and restructuring czar seems as committed as shows the public and media’s short Stephen Goldsmith is nuts-and- ever to pursuing radical reforms,de- attention span concerning serious bolts: streamlining management, spite deep scars from the battles he subjects. Keeping the focus on these introducing technology to lower has fought. Mr. Klein’s position has important issues is the administra- costs, and planning to lease less been weakened by the revised city tion’s most important responsibility.

sumed one to two servings a day of sugared beverages had a 26% greater Stamp out sugar; risk of developing type 2 diabetes than those who consumed less than one serving a month. The joint state-New York City free up markets proposal seeks to correct this error and study the results. The food- stamp benefit would not be reduced, BY DR. RICHARD F. DAINES but would simply limit users to better nutritional choices. EW YORK’S proposal to prohibit food-stamp pur- From the free marketers’point of chases of sugary beverages and study that move’s view, when taxpayer money is used to support something that, in turn, effect on consumption and obesity has been creates more demands on taxpayers embraced by the public health community. The to subsidize higher health care costs potential health and health care cost benefits and leads to impaired productivity are obvious. of its recipients, it violates the tests N of “necessity and propriety,” the Opposition from the beverage industry and defenders of principled grounds for taxation open-ended entitlements was expected. But resistance from (Federalist Paper No. 33). Friedrich von Hayek, an econo- proponents of free markets, lower obesity rates. SNAP-eligible fami- mist best-known for his defense of taxes and less government—who lies are the same Americans who are free-market capitalism, asserted claim that the proposal is an example most victimized by today’s obeso- that a “correct”price is arrived at not of government intrusion into private genic food environment. Taken to- through expertise or advocacy, but decisions and markets—makes no gether, the rates of overweight and through the aggregated free choices sense. The current program, not the obese individuals among those with of individuals participating in a sort proposed one, is the type of entitle- the lowest family incomes top 60%. of continuous popular referendum. ment that advocates for smaller gov- In effect, federal policy has creat- A flaw in SNAP effectively re- ernment would generally oppose. ed a decades-long experiment in be- duces the cost of excessive sugary Over 40 million needy Americans havioral economics: How much of beverages to zero for recipients.The get help buying groceries with food something that tastes really good and misguided soda subsidy skews the stamps through the federal Supple- is relentlessly marketed, yet doesn’t balance between the pleasure of mental Nutrition Assistance Pro- provide nutrition or produce satiety, consuming sugary beverages and gram.Note the word nutrition in the will be consumed when it’s free? The the importance of practicing good title. Yet SNAP participants spend results show that those most likely to eating habits. Families would al- 6% to 7% of their food-stamp re- consume more sugared beverages are most certainly strike a more appro- sources on nutrition-free sugary bev- precisely the populations who are priate balance if the subsidy were erages, the consumption of which most at risk for obesity and its conse- limited in favor of better nutrition. has been identified by the American quences, such as diabetes. Research Dietetic Association as the single reported this month in Diabetes Care Dr. Richard F.Daines is New York state’s biggest factor in the nation’s rising found that individuals who con- commissioner of health.

November 1, 2010 | Crain’s New York Business | 11 20101101-A--0012-NAT-CCI-CN_-- 10/28/2010 6:49 PM Page 1

NEIGHBORHOOD JOURNAL

DRIVING AHEAD: Thanks to the new store, Arverne residents no longer have to travel two or three Rockaway gets big-time foodie fix miles to a market.

“It’s a wonderful addition to the ganization promised New Stop & Shop feeds the seaside area’s community,” says Glenn DiResto, a that the new residences growth plans, but jobs, transportation still lag lifelong resident of the area and a would be joined by a board member of the Arverne by the large commercial center, indeed. Sea Homeowners Association. “It’s an elementary school BY KATIE HONAN In fact, for the more than 800 30 years overdue.” and a transit hub. Many residents of Arverne by the Sea, a longtime residents of HE OPENING of a Stop & bucolic new community made up Promises, promises the area,a down-at-the-heels neigh- commercial portion, including the Shop wouldn’t usually of a mix of apartment buildings and THE FIRST HOMES in the complex borhood chronically plagued by high supermarket, took much longer. be big news in New York white- and sea-foam-colored multi- were built in 2003, along streets unemployment, hailed the new de- “[The Stop & Shop] will provide City. But out along the family homes, the debut of the store with names like Sandy Dune Way velopment and the prospect of more much-needed jobs and also another ocean on the Rockaway late last month is a promise come and Spinnaker Drive. Back then, businesses and jobs. choice for Rockaway residents when TPeninsula in Queens, it’s a big deal true. co-developer The Beechwood Or- The homes went up quickly.The they buy food,” says Jonathan Gas- ka, district manager of Community Board 14, which covers the area. More than 2,000 people applied for 160 part-time jobs at the store, says a store manager—adding that people were waiting in line to shop before the 6 a.m. grand opening. In fact, many in the community are hoping that the long-awaited arrival of the $23 million, 55,000- square-foot supermarket will provide another powerful push toward New York is different. revitalizing the area. Until now, the two supermarkets closest to the new development—a Waldbaum’s and a Key Food—were two and three miles away, respectively, over on the western edge of the peninsula. Those living on the So is City National. other side of Arverne in Far Rock- away, on the peninsula’s eastern edge, have even fewer options. For them, the closest food marts are small shops on Mott Avenue and e City National difference? Two simple words: our people. City National Beach Channel Drive, two main commercial streets. None offers colleagues have the experience and resources to deliver tailored financial solutions. fresh produce or a pharmacy. “You have to provide basic community services for an area to grow,” ■ Award-winning service says Jack Friedman, executive vice president of the Queens Chamber ■ A full range of commercial banking services: of Commerce. “The small model of a supermarket doesn’t do the job lending, cash management and foreign exchange anymore.”

■ Wealth management to preserve and grow your wealth Keeping folks close to home STOP & SHOP sees a big opportunity

■ in the Rockaways, since its research Financial strength and stability found that many people have typically traveled off the peninsula— crossing toll bridges and county lines—just to buy their groceries. “Residents are driving to Nassau County or Brooklyn or Forest For a different kind of financial relationship contact us today. Hills,” says Amy Murphy, director of marketing for the chain. Whether the supermarket can Private Client Services Wealth Management Entertainment Division Broadway Team help turn the area around remains to Robin Balding Geoff Sargeant Richard McCune Stephanie Dalton be seen. While the arrival of (917) 322-5202 (917) 322-5245 (917) 322-5237 (917) 322-0641 Arverne has helped buoy the neigh- [email protected] geoff[email protected] [email protected] [email protected] borhood’s fortunes, crime rates remain higher than in many other parts of Queens. In addition, the 400 Park Avenue, 7th Floor, New York Rockaways’sole mass-transit link to the rest of the city,the A train,is un- dergoing major track work, which will limit transportation options for another year. At the same time, other projects slated for the area are at least a year away from completion. These include a revamped subway transit

©2010 City National Bank hub,a YMCA and a 600-student elementary school. Still, the opening of the store itself is a major step. “A community isn’t complete until you have a full-service supermar- cnb.com Member FDIC ket that the residents can rely on,” says Ms. Murphy. Ⅲ

12 | Crain’s New York Business | November 1, 2010 CN013498 2/12/10 11:39 AM Page 1

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REAL ESTATE DEALS PLUS

Accountant moves property,also helped seal the deal for OFF A CLIFF Hertz Herson. Office buildings to Madison Dan Horowitz and Gary Kerper Average number of housing units ACCOUNTING FIRM Hertz Herson is of Studley represented the tenant. built annually in NYC moving up in the world. —MARINE COLE are biggest losers It recently signed a 15-year lease for 17,550 square feet at 477 Madison Ave. The asking rent in the building, Retailer subleases EW YORK’S OFFICE BUILDINGS suffered the which is located at the corner of East biggest valuation declines of any property type 51st Street, was in the upper $40s a from restaurant over the past year, but they are expected to rack square foot. HIGH-END ITALIAN MENSWEAR retail- up the biggest rebounds in the next six months. Hertz Herson, a long-term ten- er Tincati is making its U.S. debut N ant down at 2 Park Ave., in the Big Apple. The In the 12 months through October, office will move into its new Milan-based company buildings’ valuations fell 12%, according to appraisal firm home, the entire 10th recently signed a 14- Integra Realty Resources. Investors just weren’t willing to floor, in the spring. year lease at 20 E. 63rd “They were at 2 Park St., between Fifth and pony up large amounts for buildings when rents were still Ave. for a generation,” Madison avenues. The Source: New York Building Congress falling and vacancy rates rising. says David Hoffman of lease includes all 6,000 Based on the level of interest from its clients who are Cassidy Turley, which square feet of retail investors, Integra projects that valuations will increase 8% represented landlord space in the five-story liquor license. J.A.B. Madison Associ- townhouse. The asking The proximity to Madison Av- through March of next year. In the past three months, ates in the transaction. 477 Madison Ave. rent, including taxes, enue was a key factor in the deal. valuations have advanced 6%. “That space had become was $800,000 a year. “[Tincati] certainly wanted to be less functional for them.” That translates to a blended rent of close to Madison Avenue because “Investors are projecting a spike Plus, demand for apartments re- In contrast, the firm’s new land- $133 a square foot. that’s where their clientele shops in rents,” says Raymond Cirz, a mained reasonably high. Integra lord has already prebuilt the space in Tincati is expected to officially and eats and lives,” says Marianne managing director at Integra. predicts that values will rise 6% in the a third of the 323,000-square-foot open in March,but it may have a soft Thorsén, the Sierra Realty Corp. “Whether perception is getting next six months,having already soared building without a tenant in hand. opening in early December.The re- broker who represented La Goulue. ahead of reality remains to be seen.” 8% in the past three months. Hertz Herson told the landlord that tailer is subleasing the building from “They could get the same amount of The best-performing properties Mr. Cirz notes that in the past if it could re-create that same space, French restaurant La Goulue. The space [on Madison], but not for this in the period were multifamily three months, valuations on all five it would lease a whole floor. eatery had operated nearby on kind of money.” buildings, which saw average values property categories that Integra “It was a big driver for them that Madison Avenue for more than Laura Pomerantz and Dan Har- slip 2%. Mr. Cirz attributed that to tracks have risen in New York City, we built the space,” says Mr. Hoff- three decades but closed in 2009, roch of PBS Real Estate represent- the willingness of Fannie Mae and in contrast to most of the country, man, adding that the landlord’s fi- with the intent to reopen at the East ed Tincati in negotiations. The Freddie Mac to lend, which meant where declines are continuing. nancial stability, especially its less 63rd Street spot. However, La owner of the building is Albert Wu. investors could continue to buy. —THERESA AGOVINO than 25% loan-to-value on the Goulue had trouble securing a —ADRIANNE PASQUARELLI

Meet Julie Amsden.

Hammondsport native. Mom. Local landowner. Supporter of natural gas.

“I’m very excited about natural gas drilling. It’s clean gas. It’s highly abundant. And the potential in this region is huge. Drilling would bring a huge economic beneﬁt to New York State, not only in terms of generating tax revenue, but also in terms of jobs—creating jobs in this area and bringing people to this area. It’s just a huge economic opportunity that I think we, as upstate New Yorkers, need to capitalize on.”

To learn more about natural gas in our communities, visit www.FriendsOfNaturalGasNY.com

14 | Crain’s New York Business | November 1, 2010 CN014042 10/26/10 1:07 PM Page 1 20101101-A--0016-NAT-CCI-CN_-- 10/28/2010 7:31 PM Page 1

SMALL BUSINESS Local phone firm wants the calls

company purchases unused whole- giant XO Communications, is con- and promises hourly return calls. DynaLink connects sale bandwidth from much larger stantly working on perfecting cus- “We swarm these customers until to corporate clients, telecoms and resells it to about tomer service. “Otherwise,” he ex- they’re back up,” he says. ON THE LINE: DynaLink’s Larry Fishelson 1,000 corporate clients around the plains, “we might not be here.” But even that isn’t enough, Mr. but can it keep them? country that want to use landlines. Fishelson realizes. To sharpen its DynaLink faces a daily onslaught of Responding to breakdowns edge, the reseller of excess landline sheet, isn’t alone in spending many BY EMILY SACHAR threats, including pitches for cus- SINCE STARTING DynaLink in 2005, service just completed a new of his waking hours thinking up tomers from other competitive local Mr. Fishelson has built a team of 32 30,000-square-foot office, largely ways to keep clients happy. Sniffing T’S NOT EASY for small compa- exchange carriers, or CLECs, and locally based employees devoted to devoted to customer service, on opportunity, thousands of small nies like DynaLink Commu- newer technologies like Voice over making sure customers’ service is up MacDonald Avenue in Brooklyn. telecom firms across the country nications to win and hold on Internet Protocol, or VoIP. and running around the clock. Mr.Fishelson,who has built Dy- have rushed into the marketplace to to new customers. Chief Executive Larry Fishelson, When phone service breaks down, naLink’s annual sales to $20 million snatch customers from Goliaths like The Manhattan phone a former sales executive with telecom he gives clients a dedicated contact without adding debt to his balance AT&T. I Between 2002 and 2009, the number of CLEC lines in the U.S. jumped to 32,600 from 21,645, according to the Telecommunications Industry Association.Years of unsat- isfactory customer service in New York City have made the local marketplace receptive, says Mr. Fishel- son, who has come across about a dozen CLECs in the New York area. Right now, there seems to be plenty of bandwidth to go around. Mr. Fishelson—who buys service from Broadview Networks and Ver- izon Communications Inc. in New York City, as well as One Commu- nications and Paetec Communica- tions in Rochester—estimates that some large carriers have as much as 70% unused capacity. Even if that estimate is high, experts believe that the recent spate of mergers, such as the one between Qwest Communications and Cen- turyLink in April, and bankruptcy filings in the industry indicate that some midsize to large telecoms can’t find enough customers. That could lead to even more excess capacity.“In a recession like this,the big telecoms have to care about every minute of excess,”says Ibrahim Habib,an elec- trical engineering professor at City On board with the little toy company College. A growing threat NONETHELESS, many of today’s that could. And did. CLECs may not be able to survive a broadening threat from wireless and VoIP services, Mr. Habib adds. As Opportunity at every step. cable companies strengthen their VoIP networks, with fewer breakdowns, they will pose even greater For Melissa & Doug, makers of high-quality children’s toys, the goal has always been to give kids a fun way to peril to the CLECs. “The opportunity is there,” he says, “but so is the learn. And since the beginning, we’ve helped them achieve that goal as well as signicant nancial growth. It all downside.” Mr. Fishelson believes there are began with a deep understanding of their business, which led to credit and capital solutions in synch with their still plenty of companies that aren’t ready to drop traditional phone needs and their revenue cycles. Allowing Melissa & Doug to make learning fun and keep their business happily service and aren’t happy with the big telecoms. Gucci, which does busi- chugging along. Discover all the ways we can help your business grow. ness locally, switched to DynaLink in the spring of 2006 out of frustra- tion with two large carriers that provided phone service for roughly 15 Call Thomas Carley at 1.212.796.6947 or visit bankofamerica.com/businesssolutions8 retail stores and offices. “The last thing I want to be wor- rying about is the phones,” says Robert Slawski,facilities manager for Gucci America.The price,he says,“is right, and the service is first-rate.” The trick for DynaLink will be keeping clients like Mr. Slawski feeling that way,so they don’t try yet another telecom. Ⅲ “ Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking afliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking afliates of Bank of America Corporation (“Investment To sign up for Crain’s Banking Afliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated, which is a registered broker-dealer and member of FINRA and SIPC, and, in other jurisdictions, locally registered entities. Investment products offered by Investment Banking Afliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. AR2351V5 S SMALL BUSINESSS newsletter, go to www.crainsnewyork.com/smallbiz.

16 | Crain’s New York Business | November 1, 2010 CN013986 9/24/1011:28AMPage1

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SHINING CROSSROADS: Real estate agents refer to the area around Frederick Douglass Boulevard and 116th Street as the Gold Coast—a nod to the swank condos and restaurants that have sprouted up there.

The New Harlem Renaissance

Just about every economic change that’s reshaping MORE ONLINE CRAIN’S CHRONICLES the dramatic changes sweeping 116th Street on today’s New York can be found on the two-mile its website, with a rich collection of stories, photos and videos. You can find it all at stretch of Harlem cityscape known as 116th Street crainsnewyork.com/issue-116th

BY DANIEL MASSEY 375,987 the potential harm to small businesses and Columbia’s for its use of N A RECENT SATURDAY NIGHT, a red carpet eminent domain. But megaprojects was rolled out on Frederick Douglass 323,248 are just one chapter of 116th Street’s rapidly changing story.Maybe more Boulevard near West 116th Street. Bright than any other street in the five bor- lights shone, West African music pulsed oughs, this two-mile stretch reflects through the air and lanky models showed all the elements of a city in transi- off a new collection of Africa-inspired tion: new immigrants establishing themselves as former ones move on, and work,” says Jonathan Bowles, di- clothing by Ibrahima Doukoure to mark businesses opening their doors as rector of the Center for an Urban Fu- his boutique’s third anniversary. ¶ The scene was a far cry from others close. ture, a nonpartisan public policy the one on 116th Street when Guinean-born Mr. Doukoure Luxury condominiums are being think tank. “It would be a real shame O built without subsidies—unthink- if every neighborhood continued to arrived in Harlem from Rome 16 years ago.Then, he had to able just two decades ago—and up- see an explosion of major retail chains walk to 110th Street and Broadway just to find a bank. He had scale professionals are moving into a and a diminishment of local business- to lie to Yellow Cab drivers to get a ride home, telling them he community long considered imper- es that give the city its unique flavor.” was going to 110th and Central Park West. ¶ “Everything was vious to the economic boom that The revival of 116th Street can run down,” Mr. Doukoure recalls. “I thought, ‘What have I 2006- has swept other parts of Manhattan. be traced to the decision by former 2008 Mayor Edward Koch to make hous- gotten myself into?’ ” ¶ Today, his shop, Bébénoir, is on a 1980 (avg.) Recasting tools ing the centerpiece of his agenda. PROGRESS HASN’T COME without a Harlem,devastated by the fiscal cri- stretch of Frederick Douglass Boulevard that real estate agents Source: Census Bureau call Harlem’s Gold Coast. Marketing gimmicks aside, there’s price.It has pushed out longtime res- sis of the mid-1970s, had lost 37% idents and immigrants, mostly from of its population.In 1986,Mr.Koch no doubt that the 116th Street area is in the midst of a HARLEM’S West Africa and Latin America.And set aside $4.2 billion to invest in af- transformation. ¶ On the neighborhood’s eastern edge, a long- the influx of new wealth presents a fordable housing and embarked on dormant wire factory is now a $500 million shopping center POPULATION challenge to city officials recasting a rebuilding program in some of the HAS GROWN government’s role amid a recession city’s most blighted neighborhoods. anchored by such major retailers as Target and Costco.Toward that has weakened traditional tools The initiative moved quickly in the western end, Columbia University is about to spend $6.3 STEADILY, for economic development. Harlem, partly because over 60% of billion for a new campus that will enhance its research capacity BUOYED BY AN “As much as the city changes, and the property there was already under and extend its reach to the north and west. ¶ Those we have to embrace that, its future city ownership. INFLUX OF NEW also depends on having places where “The decision to reinvest in developments stirred up plenty of controversy: the center’s for IMMIGRANTS a diverse mix of New Yorkers can live neighborhoods like the 116th Street

18 | Crain’s New York Business | November 1, 2010 20101101-A--0018,0019-NAT-CCI-CN_-- 10/28/2010 8:52 PM Page 2

the banks and supermarkets that for years had shunned Harlem. “It created what we call in the appraisal world the comps that made much of the rest of the development of for-sale housing in Harlem possible,” says Mr. Levine. The city subsidized Renaissance Plaza generously, with more than $20 million of zero- and low-interest loans, to make it affordable for middle-income households. Another 116th Street project, Full Spectrum’s 1400 on Fifth, paved the way for the torrent of market-rate condominiums in Harlem. Built through a public-private partnership, the 129-unit complex sold out quickly when it was completed in 2004; one-third of the condos were market-rate. “I knew at the time that particu- lar project was going to be the game changer for Harlem,” says Blondel Pinnock, president of the Carver RETAIL VISION: Ibrahima and Fatima Doukoure quit corporate jobs to run their boutique, Bébénoir. Inspired by the couple’s native Community Development Corp., continent, the shop appeals to an upwardly mobile clientele while reflecting 116th Street’s history and culture. who worked on 1400 on Fifth as a banker for Fleet. “The nagging doubt we had was whether anyone would pay $1 million for a townhouse or market rate for any unit right across the street from a public housing project.” Groundbreaking WITHIN TWO YEARS, Ms. Pinnock says, developers were “laying stake to ground” on the neighborhood’s first e solely market-rate projects. Carver Federal Savings Bank got involved with Graceline Court,a 16-story lux- CALL TO SIDEWALK PRAYER: West African immigrants played a ury building that is filling up adjacent pivotal role in the rejuvenation of the 116th Street area by opening

photos:buck ennis to Malcolm Shabazz mosque. restaurants, stores and other types of businesses. Pressured by “1400 on Fifth gave birth to all rising rents, the community is now struggling to find sufficient these other projects,” Ms. Pinnock space for worship services. corridor rather than wall off these says.“It established a market for mar- sections of the city that were severe- ket-rate condos in Harlem proper.” ly dilapidated is one of the great un- But change brings uncertainty. told stories about New York,” says And for those who endured Harlem’s Rafael Cestero,commissioner of the worst days and now contend with city Department of Housing soaring commercial rents and new Preservation and Development. condos that are out of reach, it raises “Housing allowed neighborhoods a question: Who benefits? to repopulate, and that brought all On one hand, everyone, because the good things and all the chal- empty lots now have banks, super- lenges neighborhoods face today.” markets and some affordable hous- On 116th Street, a menu of city, ing. But in just one block, high rents state and federal subsidy programs have forced out a chicken joint, a car- helped entice private developers pet dealer, and a coffee shop and left into an area that was “essentially others struggling to survive. Since gutted,” according to Kathryn Bébénoir opened, the monthly rent Wylde,who until 1996 ran the non- has nearly doubled, to $4,000. profit New York City Housing Part- “We have a history of being here nership. through Harlem’s tough times,” says GAME CHANGER: Built through a public-private partnership and PIONEERING GROCER: Twenty years ago, Francisco Garcia “Most of the housing we devel- Imam Izak-El M. Pasha of Malcolm completed in 2004, 1400 on Fifth is considered by real estate opened the first Mexican food store in East Harlem. Today, an professionals to have paved the way for large-scale market-rate array of businesses offering similar products has created stiff oped under the Housing Partner- Shabazz mosque.“If it’s going to have condominium development in the area. One-third of its 129 units, competition in the neighborhood, which has taken on a ship was the first privately financed good times, we have a right to bene- all of which sold quickly, were priced at market rates. decidedly Mexican flavor. new housing built in Harlem in fit from them.” more than 50 years,” says Ms. The recession and weak recovery Wylde, now president of the Part- have slowed the frenzy, but 116th nership for New York City. “That’s Street’s expansion continues. On one how long there was no market in- block near Frederick Douglass vestment in the housing stock.” Boulevard, a group of investors is The $60 million Renaissance ready to break ground on a market- Plaza, a housing and retail develop- rate condo project,and several restau- ment on the northeast corner of rateurs are preparing to open a 3,500- Lenox Avenue and 116th Street, square-foot tavern and bistro. signaled the strip’s comeback. Built As a new neighborhood takes by a team consisting of the city, the shape, the challenge is to balance Housing Partnership, the develop- growth with affordability, to ensure ment arm of the Malcolm Shabazz that the diversity that makes New mosque, and developers Stuart York New York continues to flourish. Match Suna and Jeffrey Levine, its “You move to Harlem because you 241 moderately priced co-ops at- like what’s already there, but when tracted more than 4,000 applicants you get there, you wonder if you’re when the project was completed in helping to push what you like out,” 1999. Additionally, its 60,000 says Gabrielle Lopez, a resident of CULTURAL LANDMARK: The eastern end of the corridor has seen extensive turnover in businesses, but Cuchifritos 116 is one of square feet of retail space brought 116th Street. Ⅲ several shops that have been around for decades. Most of the old-timers own the buildings that house their operations.

November 1, 2010 | Crain’s New York Business | 19 CN014025 10/13/10 2:00 PM Page 1 Say Thank You Any Time of Year

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BUSINESS OF LAW INSIDE Global markets U.S. law firms push hard to catch up with British firms in the contest for international clients PAGE 24 The largest law firms in New York, ranked by number of area lawyers PAGE 25

Wall Street reforms spur talent hunt Firms brace to accommodate Dodd-Frank’s legal demands

BY HILARY JOHNSON NOW THAT CONGRESS has approved the most sweeping rewrite of the legal rule book governing Wall Street and the financial services industry since Franklin Roosevelt’s time, attorneys across the city are preparing for what they believe will be a raft of new opportunities for lawyers possessing the right résumés and professional experience. “When this legislation became prominent last fall, recruiting calls went nuts,” says William J. Sweet Jr. of Skadden Arps Slate Meagher & Flom. CREDENTIALS COUNT: Given Dodd-Frank and As head of the law firm’s finan- Obama in July of this year. the SEC’s new activism, cial institutions regulatory practice “We’ve definitely seen an uptick Kevin Puvalowski and in Washington,D.C.,he was used to in hiring of securities and white- others with regulatory receiving two or three calls a year collar attorneys, at both large firms experience are now from headhunters asking if he was and litigation boutiques in Manhat- finding more private- sector opportunities. interested in making a professional tan,” says Michael Lord, managing change. But once the financial in- director of Michael Lord & Co. dustry reform passed,he started get- At his attorney placement firm, ting a couple of calls each week. the number of requests for litigators “As 2009 progressed—and espe- with a securities background is up cially going into 2010—the tempo about 30% from this time last year, picked up,” Mr. Sweet says. he estimates. Legal recruiters, too, find them- After two years of a grueling re- selves suddenly busier since The cession in which thousands of law- Dodd-Frank Wall Street Reform yers’jobs have been erased,things are and Consumer Protection Act was starting to look up in some New York

buck ennis signed into law by President Barack See FINANCIAL LAW on Page 22 In skittish market, more partners jump ship sideways

porting big law firms—to switch September, “but over the past six Game of legal musical professional allegiances, according SWAP YOUR (LAW) PARTNERS months, we’ve seen a lot more chairs shows no sign to Arthur Ciampi, principal of RECENT DEPARTURES RECENT ARRIVALS movement than last year.” Ciampi,which represents lawyers in The Churn, a blog that tracks of stopping soon partnership negotiations and sepa- 37 left Sonnenschein Nath 66 joined Greenberg Traurig law firm moves and promotions, ration agreements. & Rosenthal* 58 joined Jones Day typically receives 20 lateral an- BY HILARY POTKEWITZ Indeed, some top firms have 34 left Dewey & LeBoeuf 52 joined Duane Morris nouncements per week. In Septem- been buffeted by multiple partner 31 left DLA Piper ber,announcements spiked to 40 per LURING SENIOR-LEVEL partners used defections. To give just a few exam- 45 joined Orrick Herrington week, according to parent company to be a coup of the highest order,but ples, Nixon Peabody lost about 21 26 left McDermott Will & Emery & Sutcliffe American Lawyer Media. not anymore. Sometime last year, partners nationwide last year, Lath- 23 left Latham & Watkins 28 joined Cozen O’Connor But observers say this furious the invisible hand of the legal mar- am & Watkins lost 23, and 34 left activity is not the long-awaited *Now SNR Denton. Source: ALM Legal Intelligence 2010 Lateral Partner Moves Database ket seemingly pressed “Go,” and DLA Piper.Meanwhile,Greenberg sign that the legal industry is final- partners started changing places in a Traurig snagged 66 partners nation- ly regaining a solid footing after game of lateral musical chairs that wide from other firms, and Jones 11% increase over 2008 levels, and al movement is up between 25% and two grinding years of recession and shows no sign of slowing down. Day acquired 58. that rate has only accelerated this 30% so far in 2010 over the same pe- relentless layoffs, but rather an in- It’s become almost common- The list goes on. Nationally, year, according to American Law- riod last year. dication of widespread nervousness place for senior partners and heads nearly 3,000 partners switched from yer’s “2010 Lateral Report.” “Summer is usually a slower sea- and insecurity. of practice groups—the pillars sup- one big firm to another in 2009, an Mr. Ciampi estimates that later- son,” he said during an interview in See LEGAL on Page 23

November 1, 2010 | Crain’s New York Business | 21 20101101-A--0021,0022-NAT-CCI-CN_-- 10/28/2010 6:51 PM Page 2

REPORT Financial law fallout

Continued from Page 21 derivatives lawyer from Shearman legal offices, as they gear up their se- & Sterling, to its financial services curities and compliance practices to practice group in New York. better serve clients grappling with Attorneys who have significant the ramifications of Dodd-Frank. experience with federal or state reg- At more than 2,000 pages, ulatory agencies are also finding Dodd-Frank introduces hundreds more opportunities awaiting. In of new rules, and mandates dozens September, Kevin Puvalowski left of reports and studies over the next his post as a deputy in the Office of several years. It touches public and the Special Inspector General for private financial-services firms of all the Troubled Asset Relief Program 125 Broad Street stripes—in ways that some compa- in Washington to join Sheppard nies may not even yet realize. Mullin Richter & Hampton. As a Your custom-built, state-of-the-art ofﬁce environment awaits you in the Its provisions include requiring partner in that firm’s business trial center of Downtown Manhattan. Everything a law ﬁrm or business could certain hedge funds and private equi- practice group in New York, he will ever want is right here, including 24/7 security, backup power, and ty shops to register with the Securi- focus on white-collar and civil- garage parking. Plus, this incredible location offers the convenience and ties and Exchange Commission. It fraud defense . culture every professional desires. It’s your ideal opportunity to move up to Downtown. 15,000-277,100 sf available. also establishes a new federal watch- dog, the Consumer Financial Pro- Private-sector outlook tection Agency,that is expected to be WITHOUT A DOUBT, “the market for quite vigilant on the public’s behalf. lawyers with my kind of credentials For more information contact: “It is going to take years to ad- is certainly better today than it was Christopher DeLorenzo l 201.986.1463 l [email protected] dress the unprecedented complexity two years ago,” when he last con- Mark Ravesloot l 212.984.6667 l [email protected] of final rule-making required in the sidered his options, says Mr. Puval- massive Dodd-Frank bill,” Alan owski. Before joining the TARP of- Greenspan, former chairman of the fice, he had served for more than Federal Reserve, recently com- mented in the Financial Times. Some legal wags have even taken An uptick in to referring to Dodd-Frank as “The Exclusive leasing agent www.125broadstr.com Lawyers and Lobbyists Full Em- regulations ployment Act of 2010.” “We expect a big uptick in new means more regulations, which always means more work for lawyers,” says Brian work for lawyers Davis, a Manhattan-based partner at legal search firm Major Lindsey & Africa. He notes, however, that “it’s still not 2007, but we’re much busier than we were.” seven years as a federal prosecutor in Indeed, the federal jobs report the Southern District of New York. for September showed a third In addition to the obvious impact straight month of gains for legal of Dodd-Frank,agencies such as the services, with 2,500 positions added SEC have adopted a more activist nationwide. That’s an improve- stance following the financial crisis, ment, to be sure, but total U.S. legal Mr.Puvalowski notes,creating more services employment,at 1.1 million, chances for legal work. “The en- was nevertheless down by almost forcement and regulatory environ- 7,000 versus the year-earlier period. ment is already far more active than it was several years ago,” he says. Targeting top names Partners at some firms are now RECRUITERS AND LAWYERS note that racing to educate their clients about the current demand for compliance the consequences of Dodd-Frank. and regulatory legal talent arising Baker & McKenzie and Skadden from Dodd-Frank follows the es- Arps, among others, have mounted tablished pattern: Law firms are frequent webinars for their affected starting at the top, recruiting from clients, and they’re fielding phone rivals the highest-profile partners calls from puzzled corporate execu- they can afford and lure away. tives struggling to figure out what For example,Dechert recently ex- reform means for their businesses. panded its financial services practice “There’s a period over two or by bringing in three of Fried Frank three years where clients are going Harris Shriver & Jacobson’s Wash- to have to digest this, come to grips ington partners to join Dechert’s with it and integrate it into their D.C. practice. Among them was thinking,” says Mr. Sweet of Skad- Thomas Vartanian, the well-known den Arps, who recently helped pro- chair of Fried Frank’s financial insti- duce the firm’s manual on the law. tutions transaction group. “There is clearly [Dodd-Frank] “When people saw this legisla- work for lawyers, consultants and tion coming, a lot of firms began to specialists in a lot of areas.” understand that they need to pro- The pickup in demand also bodes vide their clients with seasoned well for the economy at large,as com- banking-regulatory advice—largely panies look ahead to recovery and because the regulatory agencies will start to strategize about mergers and have so much to say about issues that acquisitions,says David E.Brown Jr., impact them,” says Mr. Vartanian. a partner in the financial services and He joined Dechert in July; since products group at Alston & Bird. then, he says, he has spent nearly a Indeed, his firm recently brought third of time helping his clients un- on five first-year associates in the fi- derstand the full significance of the nancial services group, some of new laws. whom had been deferred for a year, Dechert also recently lured M. Mr. Brown says. “It feels like we’re Holland West, a private funds and heading in the right direction.” Ⅲ

22 | Crain’s New York Business | November 1, 2010 20101101-A--0023-NAT-CCI-CN_-- 10/28/2010 6:52 PM Page 1

REPORT BUSINESS OF LAW

ket, only to announce the Denton decision was unconnected to the consistently ranks in the Fortune merger a few months later. merger. The pair had come from 100 Best Companies to Work For and Legal musical chairs When the deal was initially an- Thacher, however, and doubtless on Working Mother’s list of 100 best nounced in June, there was already left attractive compensation pack- companies. significant dissension reported ages on the table, which “Unlike bankers, who are Continued from Page 21 selves up with rapid-fire mergers among Sonnenschein partners re- doesn’t surprise Robin usually going in to get as much “Think of the legal market like a and acquisitions—without always sentful of the Thacher arrivals, who Miller, a principal with le- 2% money as they can quickly, bunch of fruit trees that have just achieving their desired results. had received sweetened compensa- gal recruiter Corrao Miller GROWTH lawyers are looking for a sol- been through a very serious storm, Take Sonnenschein Nath & tion packages. The Denton merger Wiesenthal. in revenues at id platform that will endure Kirkland & Ellis and the fruit got loosened,”says Jack Rosenthal, which changed its name then prompted nervousness among last year, to over time,” Mr. Ciampi says. Zaremski, president of Hanover to SNR Denton in September fol- the former Thacher folk about those Many factors $1.4 billion “I wouldn’t even call it hir- Legal Personnel Services Inc.“Now lowing a merger.The firm lost near- pay packages, and partners started “IT’S NOT just about mon- ing—it’s more like buying there’s a lot of loose fruit in the mar- ly 40 partners last year—not sur- leaving. ey,” Ms. Miller says. “People are practice groups,”says Hanover’s Mr. ketplace, and they’re easier to pick prising, considering that it had Robert Azarow and Edward lured by a lot of things, and some- Zaremski. “The only true hiring is off. It’s not necessarily an indication acquired about 37 partners from Bright, former Sonnenschein part- times it’s a better culture that will do when associates move—that’s when of anything positive.” disintegrating firm Thacher Proffitt ners who left the firm in September it, or the opportunity for a better ti- you know that things are happening The most popular areas of defec- & Wood during an uncertain mar- for Arnold & Porter, have said their tle.” Arnold & Porter, for example, because of a good economy.” Ⅲ tion in recent months have been litigation and banking/securities law. (See related story, Page 21.) Attor- neys are looking to move from battered firms to ones that offer more stability, while hard-pressed firms want to bolster their billable hours and revenues by acquiring established lawyers with proven books of COMMAND business. Of course,lawyers being lawyers, COMPLEX they are unlikely to say that directly. “This was just a more compelling opportunity with a top-drawer fi- COMPOSED nancial institution firm,” says Howard Beltzer, who joined Mayer COACH Brown as a partner last month,leaving his post as co-chair of the finance and restructuring group at COGNIZANT Morgan Lewis & Bockius. “I was excited about the opportunity to COLLABORATIVE work with a large team that has a substantial stable of the largest financial institutions as clients.” CONTEMPORARY Moving as a group COUNSEL SOME PARTNERS are taking their en- COZEN tire practice groups with them when COURAGE they move.Last year,when copyright and trademark hotshot Dale Cendali CONFIDENCE left O’Melveny & Myers, where she O’CONNOR was head of the intellectual property practice, she took 10 lawyers with CELEBRATES her to Kirkland & Ellis. “I would not have gone unless I could have brought my core team COLLEAGUE with me,”says Ms.Cendali,who has famously represented Harry Potter COMMUNICATOR Richard Fama, Trial Lawyer series author J.K. Rowling. Kirkland had been courting Ms. Cendali for about three years when We know victory in the courtroom takes more than just she finally accepted their offer, but experience or strategic planning. It takes courage. her departure coincided with a rough patch for O’Melveny. Last year, the Los Angeles-based firm Our team of trial lawyers has an uncommonly consistent record of was among the 20 firms that lost the success in all facets of litigation. Whether it’s our victorious summary most partners, according to the judgments or disputes settled, favorable verdicts or appeals won, ALM report. we have the skill it takes to prevail. “Kirkland seemed to be a dynamic, entrepreneurial firm on the For worldwide offices, visit us at cozen.com. rise,” Ms. Cendali says, explaining that it was intent on boosting the profile of its copyright and trademark group. “Had I viewed Kirk- Abby M. Wenzel, Office Managing Partner land as being in dire financial shape 250 Park Avenue New York, New York 10177 and desperate for my book of busi- 212.883.4997 | [email protected] ness, I might have been hesitant,” she adds.“But the firm looked like it Geoffrey D. Ferrer, Office Managing Partner was doing quite nicely.” 16th Floor, 45 Broadway Kirkland’s revenues increased by New York, New York 10006 2% last year, to $1.4 billion, while 212.908.1201 | [email protected] profits per equity partner edged up 1%, to $2.5 million. O’Melveny, on 550 Lawyers | 24 Offices the other hand, saw a 9% decline in revenues last year, to $827 million, The confidence to proceed. as well as rounds of layoffs as a con- sequence of the financial crisis. ® While some firms have weath- © 2010 Cozen O’Connor ered the downturn on their own, others have sought to shore them-

November 1, 2010 | Crain’s New York Business | 23 20101101-A--0024-NAT-CCI-CN_-- 10/28/2010 6:52 PM Page 1

REPORT BUSINESS OF LAW

strategies: They can bulk up their London presence, improve their NY firms strive to catch up to Brits marketing and client prospecting and, more subtly, help promote the international business clients. Conroy, chairman of Baker & almost 20% last year, the over- advantages of U.S. law so that when Promote local law Much of the strongest economic McKenzie, U.K. firms are “very whelming majority of respon- the next prospective international for conducting growth, as well as the hottest initial credible players in many other mar- dents—70%—indicated that they client considers a multinational public offerings and mergers and ac- kets. They are very much the com- would favor a U.K. firm over a U.S. deal, it will think first of a U.S.- international deals quisitions, is located in emerging- petition that we are facing.” one for complex multinational based firm. market countries, many of which, work. Furthermore, 53% said they Some U.S. law firms have re- BY HILARY JOHNSON like India and Singapore, are mem- English law preferred preferred English law over Ameri- sponded by opening their first Lon- bers of the British Commonwealth. A RECENT STUDY of 1,000 interna- can jurisprudence. London also don outpost. Ropes & Gray, for in- IN THE GLOBAL MARKET for legal Prospective clients there often pre- tional law clients by Newcastle, boasts the advantage of closer prox- stance, opened an office there in services, U.S. law firms find them- fer to conduct business under the fa- England-based legal consultancy imity to the vibrant economies of January, preceded by Kobre & Kim selves in an unwanted position— miliar U.K. legal system. Acritas defined the U.S. challenge. India, China and Russia. in May 2009. According to co- playing catch-up with better-posi- “Aside from the U.S. and a few It found that while the demand for U.S. firms that choose to com- founder Michael Kim, the No. 1 tioned U.K. firms in the race for places in Latin America,” says John international legal services grew by pete overseas can adopt several reason for the move was “the relative advantage of having former federal prosecutors able to service Euro- pean clients directly.” Other U.S. firms have significantly expanded their London presence. Although White & Case opened its first office there four decades ago, the firm considers it a “strategic priority” to expand its U.K. office, says its chairman, Hugh Verrier. “Being there is important for success.” 20% OUR CLIENTS’ Once estab- GROWTH lished overseas, in demand for U.S. law firms international often discover legal services SUCCESS IS that they have last year to do a better job of convinc- ing potential clients of the breadth and depth of the services they offer. OUR SUCCESS That’s something that British firms have typically been more skilled at,notes Stephen Younger,a partner at Patterson Belknap Webb & Tyler and current chairman of the New York State Bar Association. “Their law firms have been a step ahead of us, marketing-wise,” he says. U.S. lawyers must contend with another disadvantage. For years, the Law Society, the British equivalent of the American Bar Association, has aggressively promoted the supe- riority of the U.K. legal system around the world. “The Law Soci- ety has been out marketing U.K.law a lot more strongly than we have,” Mr. Younger says. Task force meets Some say success is found. At EisnerAmper, we know SOME NEW YORK FIRMS are now push- CHARLES WEINSTEIN, CPA ing back and advocating the use of success is made. CHIEF EXECUTIVE OFFICER local law for international commer- 212.949.8700 cial contracts. The Task Force on New York Law in International With nearly 1,200 professionals, EisnerAmper lends our HOWARD COHEN, CPA Matters,a group of about 30 lawyers talent and resources to help clients succeed every day. CHAIRMAN led by former White & Case Chair- 732.287.1000 man Jim Hurlock and Bingham McCutchen of counsel Joe www.eisneramper.com McLaughlin, held its first meeting recently at Bingham’s New York offices to address the issue.The group will issue a report and recommenda- tions on the topic sometime next EisnerAmper LLP year. Accountants & Advisors The financial stakes are huge. “There’s enormous pressure coming Eisner LLP and Amper, Politziner & Mattia, LLP have combined their accounting, foremost out of Asia, and secondly tax and advisory services practices. out of Europe, to drive more of [the global dispute resolution] business New York New Jersey Pennsylvania Cayman Islands Independent Member of PKF International to other forums and other governing law,” says Mr. McLaughlin. “New York has a real interest in these global movements and shifts. To the extent New York law can be preserved, that’s a good thing for the state, the economy and its law firms.” Ⅲ

24 | Crain’s New York Business | November 1, 2010 20101101-A--0025-NAT-CCI-CN_-- 10/28/2010 5:08 PM Page 1

REPORT BUSINESS OF LAW New York Area’s Largest Law Firms Ranked by number of area lawyers

2010 lawyer breakdown, by practice area2

2010 lawyer breakdown2

NY area 2 5 Firmwide lawyers 4 lawyers NY area 20102/ 20102/ personnel6/ Rank Firm/senior partner(s) in New York1 20093 Partners Associates Of counsel Banking/commerceBankruptcy Corporate/securitiesEntertainmentExec. comp./benefitsHealth care Intell. prop./newLabor/employment media Litigation Real estate Tax Trusts/estatesOther 20093 paralegals4 *!$$%- 0/1+!2%%!'(%0+.,!-$ &&)+)!2%1 ".2*8!6:&7* <<<80&))*3(42 ' ' #$

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Continued

November 1, 2010 | Crain’s New York Business | 25 20101101-A--0026,0027-NAT-CCI-CN_-- 10/28/2010 5:01 PM Page 1

REPORT BUSINESS OF LAW

2010 lawyer breakdown, by practice area2

2010 lawyer breakdown2

NY area 2 5 Firmwide lawyers 4 lawyers NY area 20102/ 20102/ personnel6/ Rank Firm/senior partner(s) in New York1 20093 Partners Associates Of counsel Banking/commerceBankruptcy Corporate/securitiesEntertainmentExec. comp./benefitsHealth care Intell. prop./newLabor/employment media Litigation Real estate Tax Trusts/estatesOther 20093 paralegals4 +%!06.22+)%"2%%-!,)+2.- .'*79> 1&?& <<<(1*&7>,4991.*'(42 '! "!'

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26 | Crain’s New York Business | November 1, 2010 20101101-A--0026,0027-NAT-CCI-CN_-- 10/28/2010 5:01 PM Page 2

REPORT BUSINESS OF LAW

2010 lawyer breakdown, by practice area2

2010 lawyer breakdown2

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November 1, 2010 | Crain’s New York Business | 27 nb44p28-29cl.qxp 10/29/10 12:35 PM Page 28

PUBLIC & LEGAL NOTICES

Notice of Qualification of Real Branding Notice of Qualification of GOFFE Notice of Qualification of NLCF FUND Notice of Qualification of C2C Appraisal Notice of Qualification of Lyxor LLC. Authority filed with NY Dept. of CAPITAL GP, LLC. Authority filed with LP. Authority filed with Secy. of State Services, LLC. Authority filed with Premium Sub-Fund II LLC. Authority State on 10/18/10. Office location: Secy. of State of NY (SSNY) on of NY (SSNY) on 10/14/10. Office Secy. of State of NY (SSNY) on filed with NY Dept. of State on NY County. LLC formed in CA on 10/12/10. Office location: NY County. location: NY County. LP formed in 9/21/10. Office location: NY County. 10/4/10. Office location: NY County. 3/28/00. NY Sec. of State designated LLC formed in Delaware (DE) on Delaware (DE) on 10/07/10. Princ. LLC formed in Delaware (DE) on LLC formed in DE on 9/1/09. NY Sec. agent of LLC upon whom process 10/08/10. Princ. office of LLC: 399 office of LP: 230 Park Ave., Ste. 865, 6/23/09. SSNY designated as agent of State designated as agent of LLC against it may be served and shall Park Ave., NY, NY 10022. SSNY des- NY, NY 10169. SSNY designated as of LLC upon whom process against upon whom process against it may mail process to: c/o CT Corporation ignated as agent of LLC upon whom agent of LP upon whom process it may be served. SSNY shall mail be served and shall mail process to System, 111 8th Ave., NY, NY 10011, process against it may be served. against it may be served. SSNY shall process to: c/o National Registered the principal business addr.: 1251 regd. agent upon whom process may SSNY shall mail process to c/o Arnold mail process to the Partnership at the Agents, Inc., 875 Ave. of the Americas, Ave. of the Americas, 46th Fl., NY, be served. CA and principal business & Porter LLP, Attn: Richard P. princ. office of the LP. The regd. agent Ste. 501, NY, NY 10001. Principal NY 10020. DE addr. of LLC: c/o The addr.: 2325 Third St., Ste. 108, San Swanson at the princ. office of the of the company upon whom and at office address: 15301 Ventura Blvd., Corporation Trust Co., 1209 Orange Francisco, CA 94107. Cert. of Org. LLC. DE addr. of LLC: c/o Corporation which process against the company Ste. D300, Sherman Oaks, CA St., Wilmington, DE 19801. Cert. of filed with CA Sec. of State, 1500 Service Co., 2711 Centerville Rd., can be served is Satyen Mehta, at 91403. Address to be maintained in Form. filed with DE Sec. of State, 11th St., Sacramento, CA 95814. Ste. 400, Wilmington, DE 19808. the princ. office addr. Name and addr. DE: c/o National Registered Agents, P.O. Box 898, Dover, DE 19903. Purpose: all lawful purposes. Arts. of Org. filed with c/o Secy. of of each general partner are available Inc., 160 Greentree Dr., Ste. 101, Purpose: any lawful activity. State: Div. of Corps., 401 Federal St., from SSNY. DE addr. of LP: 2711 Dover, DE 19904. Arts of Org. filed Notice of Formation of CHEFSQUIRE John G. Townsend Bldg., Dover, DE Centerville Rd., Ste. 400, Wilmington, with DE Secy. Of State, 401 Federal Notice of Qualification of Oskie SWEETS LLC. Arts. of Org. filed with 19901. Purpose: Any lawful activity. DE 19808. Arts. of Org. filed with St., Ste. 4, Dover, DE 19901. Partners, LP, Authority filed Sec’y of Secy. of State of NY (SSNY) on 10/06/10. Secy. of State of the State of DE, Purpose: any lawful activities. State (SSNY) 8/10/10. Office loc.: NY Office location: NY County. SSNY Name of LLC: Total Management US, 401 Federal St., Dover, DE 19901. County. LP org. in DE 8/6/10. SSNY designated as agent of LLC upon whom LLC. Art. of Org. filed Dept. of State Purpose: Any lawful activity. NOTICE OF FORMATION of THE desig. as agent of LP upon whom process against it may be served. SSNY of NY on 9/30/2010. Off. Loc. in NY: WILSON LAW FIRM LLC. Arts of Org process against it may be served. shall mail process to the LLC, 300 E. NY Cty. Secy. of State designated as NOTICE OF FORMATION of Alyson filed with the Secy of State of New SSNY shall mail copy of proc. to 10 93rd St., Apt. 17B, NY, NY 10128. agent of LLC upon whom process Tufts Consulting, LLC. Arts of Org York (SSNY) on 6/14/10. Office loca- E. 53rd St., 31st Fl., NY, NY 10022. Purpose: Any lawful activity. against it may be served. Sec. of filed with the Secy of State of New tion: NY County. SSNY designated DE office addr.: CSC, 2711 Centerville State shall mail a copy of process to: York (SSNY) on 7/21/10. Office loca- as an agent upon whom process Rd., Wilmington, DE 19808. Cert. of Notice of Formation of MH Ducks Davidoff Malito & Hutcher LLP, 605 tion: NY County. SSNY designated may be served and shall mail a copy LP on file: SSDE, Townsend Bldg., LLC. Arts. of Org. filed with Secy. of Third Ave., NY, NY 10158, Attn: M as an agent upon whom process of any process to: 65 Broadway, Ste Dover, DE 19901. Name/addr. of State of NY (SSNY) on 10/13/10. Groeneveld. Purpose: any lawful may be served and shall mail a copy 833, NY NY 10006. Principal business each gen. ptr. avail. at SSNY. Purp.: Office location: NY Co. SSNY desig- activity. of any process to: The LLC, 7014 13 address: 299 Broadway, Ste 920, NY any lawful activities. nated as agent of LLC upon whom Ave, Ste 202, Brooklyn, NY 11228. NY 10007. Purpose: any lawful act. process against it may be served. Notice of Formation of Byrd Retail Group Purpose: any lawful act. Name: SECOND WIND; ELDER FIT- SSNY shall mail process to: The LLC. Arts. of Org. filed with Secy. of State Notice of Formation of HDA Captains NESS AND CARE MANAGEMENT LLC, 216 West 99th St., #14, NY, NY of NY (SSNY) on 10/5/10. Office location: Notice of Formation of INJURY INSIGHT, Neck LLC. Arts. of Org. filed with LLC. Art Of Org. Filed Sec. Of State 10025. Purpose: any lawful activities. NY County. SSNY designated as agent LLC. Arts. of Org. filed with Secy. of Secy. of State of NY (SSNY) on of NY 08/03/10. Off. Loc.: New York of LLC upon whom process against it State of NY (SSNY) on 09/24/10. Office 10/5/10. Office location: NY Co. Co. SSNY designated as agent upon Notice of Formation of BEAR ONE may be served. SSNY shall mail process location: NY County. Princ. office of SSNY designated as agent of LLC whom process against it will be HOLDINGS, LLC. Arts. of Org. filed to: 241 Central Park West, #8C, NY, NY LLC: 116 E. 30th St., NY, NY 10016. upon whom process against it may served. SSNY to mail copy of with Secy. of State of NY (SSNY) on 10024, Attn: Ms. Judith I. Byrd. Purpose: SSNY designated as agent of LLC upon be served. SSNY shall mail process process to THE LLC, C/O Robert W. 08/18/10. Office location: NY County. any lawful activity. whom process against it may be to: The LLC, Attn: August A. Direnzo, Hoffman, 350 Port Washington Princ. office of LLC: c/o Proskauer served. SSNY shall mail process to the 14 Chelmsford Dr., Glen Head, NY Avenue, #3B, New York, NY 10003. Rose LLP, 1585 Broadway, NY, NY Notice of Formation of 234 Starr LLC at the addr. of its princ. office. 11545. Purpose: any lawful activities. Purpose: Any lawful act. 10036. SSNY designated as agent of Street Developers LLC. Arts. of Org. Purpose: Any lawful activity. LLC upon whom process against it Notice of formation of JAKOB/HILTON filed with Secy. of State of NY (SSNY) NOTICE OF QUALIFICATION of Teri may be served. SSNY shall mail on 7/29/10. Office location: NY Co. CAPITAL, LLC. Arts. of Org. filed with Notice of Formation of LONELY KINGS Tobias Agency, LLC. Authority filed Sec’y process to Attn: Ivan Taback at the SSNY designated as agent of LLC the Sect’y of State of NY (SSNY) on PRODUCTIONS, LLC. Arts. of Org. of State (NY) 9/30/10. Office location: NY princ. office of the LLC. Purpose: upon whom process against it may 8/27/2010. Office location, County filed with Secy. of State of NY (SSNY) County. LLC formed in DE on 12/11/09. Any lawful activity. be served. SSNY shall mail process of New York. SSNY has been des- on 09/27/10. Office location: NY NY Sec. of State designated agent of to: 110 Third Ave., Apt. 21C, NY, NY ignated as agent of the LLC upon County. Princ. office of LLC: 351 E. LLC upon whom process may be served Notice of Formation of Eye Goo LLC. 10003. Purpose: any lawful activities. whom process against it may be Arts. of Org. filed with Secy. of State 12th St., #3, NY, NY 10003. SSNY and shall mail process to the principal served. SSNY shall mail process to: of NY (SSNY) on 10/14/10. Office designated as agent of LLC upon business addr.: PO Box 1274, New NOTICE OF FORMATION OF Turquoise 870 Fifth Avenue, NY NY 10065. location: NY County. SSNY designat- whom process against it may be York, NY 10009. DE address of LLC: Life, LLC. Art. of Org. filed with the Purpose: any lawful act. ed as agent of LLC upon whom served. SSNY shall mail process to c/o Corporation Service Company, 2711 Secy. of State of NY (SSNY) on process against it may be served. the LLC at the princ. office of the Centerville Rd., Ste. 400, Wilmington, DE 08/12/10. Office location: NY County. NOTICE: Roman Tree LLC. Article of SSNY shall mail process to: c/o The LLC. Purpose: Any lawful activity. 19808. Cert. of Form. filed with DE Sec. SSNY designated as agent upon whom Organization filed with the Secretary LLC, 12 E. 33rd St., 8th Fl., NY, NY of State, PO Box 898, Dover, DE 19903. process against it may be served. of State of NY on July 6, 2007. Office 10016. Purpose: any lawful activity. Purp.: any lawful activities. SSNY shall mail process to The LLC, Notice of Qualification of Evolve location NEW YORK County, 332 East 5 Tudor City Pl., #1432, NY, NY. Customer Support, LLC. Authority 15th Street, New York, NY 10003. NOTICE OF FORMATION OF LIMITED Notice of Formation of BRSG PROP- 10017. Purpose: any lawful activity. filed with NY Dept. of State on ERTIES, LLC. Arts. of Org. filed with 10/15/10. Office location: NY County. LIABILITY COMPANY. NAME: Secy. of State of NY (SSNY) on LLC formed in TX on 4/28/06. NY Sec. PLATINUM REAL ESTATE GROUP, Notice of Qual. of Venari GP, LLC, 09/22/10. Office location: NY County. Notice of Formation of PICKWEST of State designated agent of LLC LLC. Articles of Organization were filed Auth. filed Sec’y of State (SSNY) Princ. office of LLC: 589 Fifth Ave., LLC. Arts. of Org. filed with Secy. of upon whom process against it may with the Secretary of State of New 8/19/10. Office loc.: NY County. LLC NY, NY 10017. SSNY designated as State of NY (SSNY) on 10/15/10. be served and shall mail process to: York (SSNY) on 08/27/09. The latest org. in DE 8/17/10. SSNY desig. as agent of LLC upon whom process Office location: NY County. Princ. c/o CT Corporation System, 111 8th date of dissolution is 12/31/2050. agent of LLC upon whom process against it may be served. SSNY office of LLC: c/o Gotham Ave., NY, NY 10011, regd. agent upon Office location: New York County. against it may be served. SSNY shall shall mail process to c/o William Organization, LLC, Attn: Christopher whom process may be served. TX SSNY has been designated as agent mail copy of proc. to Att: Robert Goldberg Diamond Corp., Attn: Saul Jaskiewicz, 1010 Ave. of the and principal business addr.: 10555 of the LLC upon whom process Akeson, One Battery Park Plaza, 3rd Goldberg at the princ. office of the Americas, 4th Fl., NY, NY 10018. Cossey Rd., Houston, TX 77007. Arts. against it may be served. SSNY shall Fl., NY, NY 10004. DE off. addr.: CSC, LLC. Purpose: Any lawful activity. SSNY designated as agent of LLC of Org. filed with TX Sec. of State, mail a copy of process to the LLC, 2711 Centerville Rd., Wilmington, DE upon whom process against it may 1019 Brazos, Austin, TX 78701. 250 West 57th Street, Room 1401, 19808. Cert. of Form. on file: SSDE, be served. SSNY shall mail process Notice of Qualification of BROOKFIELD Purpose: all lawful purposes. New York, New York 10107. Townsend Bldg., Dover, DE 19901. to the LLC at the addr. of its princ. HH GP LLC. Authority filed with Purpose: For any lawful purpose. Purp.: any lawful activities. office. Purpose: Any lawful activity. Secy. of State of NY (SSNY) on Notice of Appl. for Auth. ROI Labs, 09/16/10. Office location: NY County. LLC, a foreign limited liability company Notice of Qualification of Bridgebar Notice of Qualification of AG TCDRS, LLC formed in Delaware (DE) on NOTICE OF FORMATION of profes- (LLC). Appl. for Auth. Filed with SSNY Lender LLC. Authority filed with NY L.P. Authority filed with NY Dept. of 09/01/10. Princ. office of LLC: c/o sional limited liability company (PLLC). on 8/26/10. LLC organized in DE on Dept. of State on 9/24/10. Office State on 10/1/10. Office location: NY Brookfield Asset Management Inc., Name: MARCIA B. KIMELDORF, PH.D., 6/11/10. NY office location: New York location: NY County. Princ. bus. County. LP formed in DE on 9/24/10. Three World Financial Center, 200 CLINICAL PSYCHOLOGIST, PLLC. County. SSNY designated as agent addr.: 55 E. 59th St., 17th Fl., NY, NY NY Sec. of State designated agent of Vesey St., 10th Fl., NY, NY 10281- Articles of Organization filed with for process. SSNY shall mail copy of 10022. LLC formed in DE on 9/21/10. LP upon whom process against it 1021. SSNY designated as agent of Secretary of State of New York (SSNY) process to: National Registered NY Sec. of State designated agent of may be served and shall mail process LLC upon whom process against it on 09/07/2010. Office location: New Agents, Inc., 875 Ave. of the Americas, LLC upon whom process against it to the principal business addr.: c/o may be served. SSNY shall mail York County. Princ. bus. addrs: 560 New York, NY 10001. Office address may be served and shall mail process Angelo, Gordon & Co., L.P., 245 Park process to the LLC at the addr. of its End Ave, Suite 1E, New York, NY of LLC in jurisdiction of organization: to: c/o CT Corporation System, 111 Ave., 26th Fl., NY, NY 10167. DE addr. princ. office. DE addr. of LLC: c/o 10024. SSNY designated as agent of c/o National Registered Agents, Inc., 8th Ave., NY, NY 10011, regd. agent of LP: c/o The Corporation Trust Co., Corporation Service Co., 2711 PLLC upon whom process against it 160 Greentree Drive, Suite 101, Dover, upon whom process may be served. 1209 Orange St., Wilmington, DE Centerville Rd., Ste. 400, Wilmington, may be served. SSNY shall mail DE 19904. A copy of the Cert. of DE addr. of LLC: 1209 Orange St., 19801. Name/addr. of genl. ptr. DE 19808. Arts. of Org. filed with copy of process to: Law Office of Form. Is on file with State of Delaware, Wilmington, DE 19801. Cert. of Form. available from NY Sec. of State. State of DE, Secy. of State, Div. of Alexander Hakopian, Esq., 2 Penn Division of Corporation, 401 Federal filed with DE Sec. of State, 401 Cert. of LP filed with DE Sec. of Corps., 401 Federal Bldg., Dover, DE Plaza, Suite 1500, New York, NY Street, Ste. 3, Dover, DE 19901. Federal St., Dover, DE 19901. State, Townsend Bldg., Dover, DE 19901. Purpose: Any lawful activity. 10121. Purpose: any lawful purpose. Purpose: Any lawful act or activity. Purpose: any lawful activity. 19901. Purpose: any lawful activity.

28 | Crain’s New York Business | November 1, 2010 nb44p28-29cl.qxp 10/29/10 12:36 PM Page 29

PUBLIC & LEGAL NOTICES

Notice of Formation of GENESEO Notice of Qualification of Mercer ME Notice of Qualification of Aqueduct Notice of Qualification of STEPH-JIM, Notice of Qualification of FAIRCHILD HIGHLANDS INVESTOR, L.P. Cert. Benefits Valuation Services LLC. Operator LLC, Authority filed Sec’y L.L.C. Authority filed with Secy. of ONSHORE FUND LP. Authority filed of LP filed with Secy. of State of NY Authority filed with NY Dept. of State of State (SSNY) 7/1/10. Office loc.: State of NY (SSNY) on 09/10/10. with Secy. of State of NY (SSNY) on (SSNY) on 08/25/10. Office location: on 10/8/10. Office location: NY NY County. LLC org. in DE 6/25/10. Office location: NY County. LLC 09/09/10. Office location: NY County. NY County. Princ. office of LP: 60 County. Princ. bus. addr.: 1166 Ave. SSNY desig. as agent of LLC upon formed in Delaware (DE) on 09/07/10. LP formed in Delaware (DE) on Columbus Circle, 18th Fl., NY, NY of the Americas, 25th Fl., NY, NY whom process against it may be Princ. office of LLC: 350 Park Ave., 08/11/10. Princ. office of LP: 1350 Ave. 10023. Latest date on which the LP 10036. LLC formed in DE on 9/27/10. served. SSNY shall mail copy of 4th Fl., NY, NY 10022. SSNY desig- of the Americas, 9th Fl., NY, NY 10019. may dissolve is 12/31/2110. SSNY NY Sec. of State designated agent of proc. to c/o Nat. Reg. Agents, 875 nated as agent of LLC upon whom SSNY designated as agent of LP designated as agent of LP upon LLC upon whom process against it Ave of the Americas, NY, NY 10001, process against it may be served. upon whom process against it may whom process against it may be may be served and shall mail process the Reg. Agt. upon whom proc. may SSNY shall mail process to c/o be served. SSNY shall mail process served. SSNY shall mail process to to: c/o CT Corporation System, 111 be served. DE office addr.: 160 Corporation Service Co. (CSC), 80 to Corporation Service Co., 80 State c/o Corporation Service Co., 80 8th Ave., NY, NY 10011, regd. agent Greentree Dr., Ste. 101, Dover, DE State St., Albany, NY 12207-2543. St., Albany, NY 12207-2543. Name State St., Albany, NY 12207. Name upon whom process may be served. 19904. Cert. of Form. on file: SSDE, DE addr. of LLC: c/o CSC, 2711 and addr. of each general partner are and addr. of each general partner are DE addr. of LLC: 1209 Orange St., Townsend Bldg., Dover, DE 19901. Centerville Rd., Ste. 400, Wilmington, available from SSNY. DE addr. of LP: available from SSNY. Purpose: Any Wilmington, DE 19801. Cert. of Form. Purp.: any lawful activities. DE 19808. Arts. of Org. filed with DE 2711 Centerville Rd., Wilmington, DE lawful activity. filed with DE Sec. of State, 401 Secy. of State, Div. of Corp., 401 19808. Arts. of Org. filed with Secy. Federal St., Dover, DE 19901. AMALGAMATED PARTNERS LLC Federal St., Dover, DE 19901. of State of DE, John G. Townsend Notice of Formation of LITTLE Purpose: any lawful activity. Articles of Org. filed NY Sec. of State Purpose: Any lawful activity. Bldg., 401 Federal St., Dover, DE LIBERTY 1 LLC. Arts. of Org. filed (SSNY) 8/30/2010. Office in NY Co. 19901. Purpose: Any lawful activity. with Secy. of State of N.Y. (SSNY) on Notice of Formation of KYLE EDITING, SSNY desig. agent of LLC upon Notice of Formation of 449 BROADWAY, 8/20/10. Office location: New York LLC. Arts. of Org. filed with Secy. of whom process may be served. SSNY LLC. Arts. of Org. filed with Secy. of NOTICE IS HEREBY given that a County. SSNY designated as agent State of NY (SSNY) on 10/14/10. shall mail copy of process to 162 State of NY (SSNY) on 10/05/10. Office license, Serial Number 1248178, for of LLC upon whom process against Office location: NY County. SSNY W. 13th St., #42, NY, NY 10011, which location: NY County. Princ. office of On-Premises Liquor has been it may be served. SSNY shall mail designated as agent of LLC upon is also the principal business location. LLC: c/o United American Land, LLC, applied for by the undersigned to sell process to: c/o Icon Parking Systems, whom process against it may be Purpose: Any lawful purpose. 430 W. Broadway, NY, NY 10012. SSNY On-Premises Liquor at retail in a 211 East 38th St., New York, NY served. SSNY shall mail process to designated as agent of LLC upon whom restaurant. For on premises consump- 10016. Purpose: any lawful activity. Vitale & Levitt, P.C., 445 Broad NOTICE OF FORMATION OF LIMITED process against it may be served. SSNY tion under the Alcoholic Beverage Hollow Rd., Ste. 124, Melville, NY LIABILITY COMPANY Name: shall mail process to the LLC at the Control Law at 88 7th Avenue, NY, Notice of Formation of 116 John 11747. Purpose: Any lawful activity. Ambleside Partners LLC. Articles addr. of its princ. office. Purpose: Any NY 10011. Chef Wang’s House, LLC Street Developer LLC, Art. of Org. filed w/SOS 8/11/10. Office: NY lawful activity. (DBA): Legend Bar & Restaurant County; Principal Business Location: filed Sec’y of State (SSNY) 8/12/10. INTERSTATE COMMUNICATIONS, Office location: NY County. SSNY TBD. SOS is process agent & will LLC Articles of Org. filed NY Sec. of Notice of Formation of INTERCON- LEOPALD AND MOLLY, LLC, a designated as agent of LLC upon send process to LLC c/o Wiggin and State (SSNY) 10/7/2010. Office in NY NECTED LIFE LLC. Arts. of Org. filed domestic Limited Liability Company whom process against it may be Dana LLP, 450 Lexington Ave, Suite Co. SSNY desig. agent of LLC upon with Secy. of State of NY (SSNY) on (LLC), filed with the Sec of State of NY served. SSNY shall mail copy of pro- 3800, NY, NY 10017. Purpose: all whom process may be served. 07/12/10. Office location: NY County. on 9/15/10. NY Office location: New cess to c/o Metro Loft Management, lawful activity. SSNY shall mail copy of process to 2 SSNY designated as agent of LLC York. SSNY is designated as agent 20 Exchange Pl., NY, NY 10005, the W. 46th St., Mezz. Fl., NY, NY 10036. upon whom process against it may upon whom process against the LLC Reg. Agt. upon whom porc. may be Notice of Formation of DLR 155 LLC. Purpose: Any lawful purpose. be served. SSNY shall mail process may be served. SSNY shall mail a served. Purpose: any lawful activities. Arts. of Org. filed with Secy. of State to c/o Kudman Trachten Aloe LLP, copy of any process against the LLC of NY (SSNY) on 9/9/10. Office loca- 350 Fifth Ave., Ste. 4400, NY, NY Notice of Formation of Gold’n tion: NY County. SSNY designated served upon him/her to JIS Consulting Notice of Formation of VETRINA Consulting, LLC. Art. of Org. filed 10118. Purpose: Any lawful activity. Ltd., 211 E. 43rd St., Ste. 1203, NY, NEW YORK LLC. Arts. of Org. filed as agent of LLC upon whom process with Secy. of State of NY (SSNY) against it may be served. SSNY shall NY 10017. General Purposes. with Secy. of State of NY (SSNY) on SCAFFOLDED APPRENTICESHIP on 10/07/10. Office location: NY mail process to: c/o D. LaRosa, 79 09/03/10. Office location: NY County. MODEL, LLC a domestic Limited Co. SSNY designated as agent of Worth St., NY, NY 10013. Purpose: NOTICE IS HEREBY given that a SSNY designated as agent of LLC LLC upon whom process against it Liability Company (LLC), filed with upon whom process against it may any lawful purpose. License Number 1248166, has been may be served. SSNY shall mail the Sec of State of NY on 8/27/10. applied for by, 69th Infantry Officers be served. SSNY shall mail process NY Office location: New York. SSNY process to the LLC, 23 West 23rd NOTICE OF FORMATION OF LIMITED Club, Inc. to sell Liquor, Wine and Beer to Vincenti & Vincenti, P.C., 80 Broad Street, #710, New York, NY 10023. is designated as agent upon whom St., Ste. 1200, NY, NY 10004. LIABILITY COMPANY. NAME: STAR- at retail in a Club under the Alcohol Purpose: any lawful act or activity. process against the LLC may be Beverage Control Law at 68 Lexington Purpose: Any lawful activity. DUST LLC. Articles of Organization served. SSNY shall mail a copy of were filed with the Secretary of State Avenue, New York, NY 10010 for on- any process against the LLC served premises consumption. Notice of Formation of SILVER TOW- NOTICE OF FORMATION of Bucky’s of New York (SSNY) on 08/31/10. upon him/her to The LLC, 250 ERS PRODUCTIONS, LLC. Arts. of Beverages LLC. Arts of Org filed with The name was amended to ROXX Riverside Dr., Ste. 72, NY, NY 10025. Org. filed with Secy. of State of NY the Secy of State of NY (SSNY) on LLC on 09/08/10. Office location: General Purposes. Notice of Formation of Pennant (SSNY) on 10/12/10. Office location: 8/31/10. Office loc: NY Co. SSNY has New York County. SSNY has been General Partner, L.L.C., Art. of Org. NY County. Princ. office of LLC: 244 been designated as an agent upon designated as agent of the LLC upon filed Sec’y of State (SSNY) 8/4/10. whom process against it may be served whom process against it may be Notice of Formation of GLUTTONY Office location: NY County. SSNY Fifth Ave., #2306, NY, NY 10001. NEW YORK LLC, a domestic LLC. SSNY designated as agent of LLC and shall mail a copy of any process served. SSNY shall mail a copy of designated as agent of LLC upon to: 7083 Hollywood Blvd., Ste 180, Los process to the LLC, c/o Vik Pawar, Arts. of Org. filed with the SSNY on whom process against it may be upon whom process against it may 08/26/2010. Office location: NY be served. SSNY shall mail process Angeles, CA 90028. Principal business 305 Broadway, Suite 1100, New served. SSNY shall mail copy of address: 210 E. 68th St., Ste 15L, NY, York, New York 10007. Purpose: For County. SSNY has been designated process to 152 W. 57th St., 19th Fl., to the LLC at the addr. of its princ. as agent upon whom process against office. Purpose: Any lawful activity. NY 10065. Purpose: any lawful act. any lawful purpose. NY, NY 10019. Purpose: any lawful the LLC may be served. SSNY shall activities. mail a copy of process to: 231 15th NOTICE OF FORMATION OF LIMITED Notice of Qual. of M81 Capital LLC, NOTICE OF FORMATION OF CEME St Apt. #3A, Brooklyn, NY 11215. LIABILITY COMPANY. NAME: Authority filed Sec’y of State (SSNY) DESIGN, LLC. Articles of Organization Purpose: Any Lawful Purpose. Notice is hereby given that a License DOROTHY D. SCHRAGER LLC. Articles 6/2/10. Office loc.: NY County. LLC were filed with the Secretary of State Number 1248490 for liquor and wine of Organization were filed with the org. in DE 5/28/10. SSNY desig. as of New York (SSNY) on 06/21/2010. NOTICE OF FORMATION of Sun & has been applied for by the under- Secretary of State of New York (SSNY) agent of LLC upon whom process Office location: New York County. Schrempp Associates, LLC. Arts of signed to sell liquor and wine at retail on 10/13/10. Office location: New York against it may be served. SSNY shall SSNY has been designated as agent Org filed with the Secy of State of in a restaurant establishment under County. SSNY has been designated as mail copy of proc. to Attn: Andrew P. of the LLC upon whom process NY (SSNY) on 7/19/2010. Office the Alcohol Beverage Control Law at agent of the LLC upon whom process Widdop, 265 E. 66th St., Apt. 39A, against it may be served. The Post loc: NY Co. SSNY designated as an Scoditti Consulting Group Inc., 920 against it may be served. SSNY shall NY, NY 10065. DE office addr.: CSC, Office address to which the SSNY agent upon whom process against Broadway, New York, New York 10010 mail a copy of process to the LLC, c/o 2711 Centerville Rd., Wilmington, DE shall mail a copy of any process it may be served and shall mail a for an On Premises consumption. Zane & Rudofsky, Esqs., 601 West 26th 19808. Cert. of Form. on file: SSDE, against the LLC served upon it is C/O copy of any process to the principal Street, New York, New York 10001. Townsend Bldg., Dover, DE 19901. the LLC 350 Broadway, #415, NY, business address: 148 Madison Notice of Qualification of Richard Purpose: For any lawful purpose. Purp.: any lawful activities. NY. Purpose: For any lawful purpose. Ave, Ste 1601, NY, NY 10016. Bernstein Advisors LLC. Authority Purpose: any lawful act. filed with Secy. of State of NY (SSNY) on 6/28/10. Office location: Notice of Qualification of Civic Capital NY County. LLC formed in Delaware Advisors, LLC. Authority filed with (DE) on 5/14/09. SSNY designated NY Dept. of State on 9/10/10. Office as agent of LLC upon whom process location: NY County. LLC formed in against it may be served. SSNY DE on 8/25/10. NY Sec. of State shall mail process to: c/o The LLC, designated agent of LLC upon whom 520 Madison Ave., 28th Fl., NY, NY process against it may be served and 10022, also the Principal Office. shall mail process to the principal Address to be maintained in DE: c/o business address: 60 Collister St., The Corporation Trust Company, Don’t miss Apt. 3A, NY, NY 10013. DE address of Corporation Trust Center, 1209 LLC: c/o The Corporation Trust Co., Orange St., Wilmington, DE 19801. Book of Lists! 1209 Orange St., Wilmington, DE Arts of Org. filed with DE Secy. Of 19801. Cert. of Form. filed with DE State, Div. of Corporations, P.O. Box Sec. of State, 401 Federal St., Dover, 898, Dover, DE 19903. Purpose: DE 19901. Purpose: any lawful activity. any lawful activities.

November 1, 2010 | Crain’s New York Business | 29 20101101-A--0030-NAT-CCI-CN_-- 10/29/2010 1:45 PM Page 1

FOR THE RECORD

Plus program. This program and STOCK TRANSACTIONS the same period, he sold 71,751 shares at research study help residents of public prices ranging from $43.28 to $43.51, in ABOUT THIS SECTION housing increase their earnings through Following are recent insider transactions at a transaction worth $3,114,354. He now on-site employment-related services, directly holds 972,263 shares. FOR THE RECORD is a weekly listing of information from the public record that New York’s largest publicly held companies financial incentives and community filed with the Securities and Exchange can help businesspeople in the New York area find opportunities, potential support for work activities. The sub- Commission by executives and major William J. Arlington, senior vice new clients and updates on competitors. grant award will be for up to five years. shareholders. Listings are in order of president, human resources, exercised To ask questions or get more information on this section, contact Denise Questions should be sent to Sinead transaction value.The information was options on 25,000 shares of common Southwood at [email protected]. Keegan at [email protected] by obtained from Thomson Reuters. stock at $31.89 on Oct. 14, in a Nov. 8. transaction worth $797,250. On the ● Regeneron Pharmaceuticals Inc. same day, he sold 25,000 shares at (REGN) $43.41, in a transaction worth REAL ESTATE DEALS Sanofi Aventis SA purchased 1,017,400 $1,085,340. He now directly holds BANKRUPTCIES controls. Bidders must demonstrate that shares of common stock at $28 on Oct. 108,141 shares. within the past 10 years prior to the bid Companies that would like to have details 13, in a transaction worth $28,487,200. The following listings are selected from the opening, they have successfully of their recent transactions appear in It now indirectly holds 15,817,000 ● PepsiCo (PEP) most recent available filings by companies completed, in a timely fashion, at least these listings should e-mail descriptions shares. Ray L. Hunt, director, exercised options seeking bankruptcy protection in the two projects similar in scope, materials following this format to on 44,961 shares of common stock at Southern and Eastern Districts of New and extent to the work required by this [email protected], with ● Jefferies Group Inc. (JEF) prices ranging from $37.50 to $66.25 on York. Information was obtained from contract. An optional prebid conference “Real estate transaction” in the subject Ian M. Cumming, director, purchased Oct. 14, in a transaction worth U.S. Bankruptcy Court records available will be held on Nov. 9 at 1 p.m. at line, or enter them online at 691,000 shares of common stock at $2,099,912. On the same day, he sold on Public Access to Court Electronic 80 Centre St. Bidders are urged to crainsnewyork.com/submitadeal. prices ranging from $23.43 to $23.45 31,520 shares at $66.68, in a transaction Records. Listings are in alphabetical purchase and review the bid documents Deals are listed in order of square between Oct. 18 and Oct. 20, in a worth $2,101,612. He now directly order. prior to the prebid conference. For more footage. transaction worth $16,201,562. He now holds 111,313 shares. information, contact Louis Pastore at indirectly holds 63,824,300 shares. ● 612-618 West 47th Street Partners (212) 669-8557 or COMMERCIAL Arthur C. Martinez, director, exercised 612-618 W. 47th St. [email protected]. ● BBDO Worldwide signed a 12-year Leucadia National Corp. purchased options on 11,769 shares of common Filed for Chapter 11 bankruptcy lease for 360,000 square feet at 1285 691,000 shares of common stock at stock at prices ranging from $37.50 to protection on Oct. 22. The filing cites ● Department of Design and Construction Sixth Ave., a 1.8 million-square-foot prices ranging from $23.43 and $23.45 $49.00 on Oct. 14, in a transaction estimated liabilities of $1,000,001 to Requests competitive sealed bids by building owned by a partnership of AXA between Oct. 18 and Oct. 20, in a worth $500,011. On the same day, he $10 million and estimated assets of 2 p.m. on Nov. 30 for the exterior Equitable Life Insurance and transaction worth $16,201,562. It now sold 17,230 shares at prices ranging $1,000,001 to $10 million. The sole restoration and partial interior institutional investors from J.P.Morgan indirectly holds 49,276,400 shares. from $66.66 to $66.69, in a transaction creditor holding a secured claim is renovation of the Wave Hill House in Asset Management. Peter Riguardi of worth $1,148,928. He now directly Coronation International Ltd., owed the Bronx. There will be an optional Jones Lang LaSalle represented the Joseph S. Steinberg, director, purchased holds 33,700 shares. $4,800,000. prebid conference on Nov. 15 at 10:30 ownership, while Lee Feld of Feld Real 691,000 shares of common stock at a.m. at the Wave Hill House, located at Estate and Bruce Mosler of Cushman prices ranging from $23.43 and $23.45 ● Polo Ralph Lauren Corp. (RL) ● Berlin & Denmar Distributors Inc. 675 W. 252nd St. Attendance at the & Wakefield negotiated on behalf of the between Oct. 18 and Oct. 20, in a Roger N. Farah, president, chief 355 Food Center Drive, Bronx meeting is strongly recommended. For tenant. The asking rent was in the $40s a transaction worth $16,201,562. He now operating officer and director, sold Filed for Chapter 11 bankruptcy further information regarding this square foot. indirectly holds 49,290,900 shares. 16,643 shares of common stock at protection on Oct. 21. The filing cites solicitation, contact Ben Perrone at prices ranging from $94.71 to $95.21 estimated liabilities of $1,000,001 to (718) 391-2614. ● The Shubert Organization’s ticketing ● Moody’s Corp. (MCO) on Oct. 15, in a transaction worth $10 million and estimated assets of division signed a lease for 20,700 square Berkshire Hathaway Inc. sold 370,146 $1,579,078. He now directly holds $1,000,001 to $10 million. Among the ● Health and Hospitals Corp. feet at 520 Eighth Ave., a 25-story, shares of common stock at prices 204,260 shares. creditors with the largest unsecured Requests competitive sealed bids by 755,000-square-foot building owned by ranging from $27.60 to $27.95 between claims are Mountaire Farms, owed 9:30 a.m. on Nov. 24 for construction to Newmark Holdings. The company will Oct. 12 and Oct. 13, in a transaction ● Veeco Instruments Inc. (VECO) $204,166.92, Porky Products, owed rehabilitate the WIC Program. move to the 11th floor. Brian Waterman worth $10,234,222. It now indirectly William John Miller, executive vice $163,684.49, and Hatfield Inc., owed Mandatory site visits are scheduled and Lance Korman of Newmark Knight holds 28,503,600 shares. president, exercised options on 12,499 $149,610.51. for Nov. 12 at 10 a.m. and 11 a.m. at Frank represented the tenant, while Eric shares of common stock at prices Cumberland Diagnostic and Treatment Gural, Brian Steinwurtzel and Matthew ● John Wiley & Sons Inc. (JW.A) ranging from $8.82 to $17.48 on ● Petra Offshore Fund Center, 100 N. Portland Ave., Mandell, also of Newmark Knight William J. Pesce, president, chief Oct. 13, in a transaction worth 1370 Sixth Ave. Brooklyn. Bid documents may be Frank, negotiated on behalf of the executive and director, exercised options $160,755. On the same day, he sold Filed for Chapter 11 bankruptcy obtained free of charge by e-mailing landlord. The asking rent was $32 a on 71,751 shares of common stock at 14,470 shares at $40, in a transaction protection on Oct. 20. The filing cites Millicent Thompson at square foot. $31.89 between Oct. 14 and Oct. 20, in worth $578,800. He now directly holds estimated liabilities of $100,000,001 to [email protected] by a transaction worth $2,288,140. During 23,168 shares. Ⅲ $500 million and estimated assets of 4 p.m. on Nov. 9. For more information, ● The Collective signed a 10-year lease $1,000,001 to $10 million. Among the contact Ms. Thompson at for 11,800 square feet at 123 W. 18th St., creditors with the largest unsecured (718) 260-7686 or by e-mail. a building owned by a family. Daniel claims is Petra Capital Management, Hassett and Barbara Craig of Newmark DEALS ROUNDUP owed $4,900,000. GOODS AND SERVICES Knight Frank represented the tenant, ● Administration for Children’s Services while Andy Udis, also of Newmark ● TRANSACTION SIZE Poor Freddie’s Auto Center Inc. Requests competitive sealed bids by Knight Frank, negotiated on behalf of COMPANY (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE 507 Benine Road, Westbury, L.I. 3 p.m. on Nov. 15 for a contractor to the landlord. The asking rent was $35 a Filed for Chapter 11 bankruptcy provide nursing staffing made up of square foot. 180 Industrial Properties $1,020.0 Blackstone Real Estate FB M&A protection on Oct. 18. The filing cites registered nurses, nurse administrators, Advisors (Manhattan) estimated liabilities of $100,001 to nurse practitioners and support staff RETAIL Laboratório Teuto $238.8 Pfizer Inc. (Manhattan) SB M&A $500,000 and estimated assets of on an as-needed basis. An optional but ● Ford signed a lease for 34,500 square Brasileiro S/A $100,001 to $500,000. Among the recommended prebid conference is feet at 612 86th St. in Brooklyn, a Pearl Therapeutics Inc. $69.0 5AM Ventures, New Leaf GCI creditors with the largest unsecured scheduled for 10 a.m. on Nov. 4 at building owned by Eugene and Seymour Venture Partners (Manhattan), claims are the New York State 150 William St., room A81. Bid Hionas. Neil Dolgin and Bob Klein of Clarus Ventures, Vatera Capital (Manhattan) Department of Taxation and Finance, forms and specifications may be Kalmon Dolgin Affiliates represented owed $80,519.78, the Internal Revenue obtained free of charge at both the tenant and the landlord. The BNK Petroleum Inc. $64.0 Soros Fund Management GCI Service, owed $18,506.83, and the http://nyc.gov/html/acs/html/business/ asking rent was not available. (Manhattan) New York City Department of Finance, business.shtml. Questions should be Sino Oil and Gas Holdings $25.1 Och-Ziff Capital Management GCI owed $4,727.39. directed to Roberta Smiley at ● New York City 36 signed a 10-year Ltd. Group (Manhattan) (212) 341-3460 or lease for 14,800 square feet at 29 W. 36th Siluria Technologies Inc. $13.3 Alloy Ventures Inc., Arch GCI [email protected]. St., a 13-story building owned by Venture Partners, Kleiner GOVERNMENT CONTRACT Broadway 36th Realty.The company is Perkins Caufield & Byers, ● Housing Authority Presidio STX, Lux Capital OPPORTUNITIES moving to the basement, ground floor Management (Manhattan), Requests competitive sealed bids by and mezzanine. Corey Abdo and Altitude Life Science Ventures 10:35 a.m. on Nov. 19 for preventative Mitchell Cooperstock of Winoker Following are selected contract SiOnyx Inc. $12.5 Harris & Harris Group Inc. GCI opportunities recently announced by New maintenance and on-call emergency Realty represented the landlord, while (Manhattan), CrossLink York City agencies.To learn how to sell services for HVAC units at PSA #6. The Michelle Mulle and Chris Cardinale of Capital Inc., Polaris Venture goods and services to city government, visit award will last for a period of two years Sunburst Advisors negotiated on behalf Partners Inc., Vulcan Capital, www.nyc.gov/selltonyc. For a searchable from commencement date. Interested of the tenant. The asking rent was $75 a Coherent Inc. database of current procurement notices, firms may obtain a copy of the bid square foot. Cadiz Inc. $10.0 Lampe Conway & Co.; GCI visit www.nyc.gov/cityrecord. Listings documents and submit them online at (Manhattan), Milfam ● are alphabetical by category and http://www.nyc.gov/html/nycha/html/ Tui Lifestyle signed a lease for eCert Inc. $8.0 Warburg Pincus (Manhattan) GCI business/business.shtml. For further 7,500 square feet at 136 Greene St., department. Ore Pharmaceutical $5.3 Steel Partners (Manhattan) GCI information regarding this solicitation, a building owned by Thomas Holdings Inc. CONSTRUCTION SERVICES contact Sabrina Steverson at Campaniello. Jared Jasinski of New ● Department of Citywide Administrative (212) 306-6771 or York Commercial Real Estate Services Selected deals announced for the week ended Oct. 24 involving companies in metro New York. Services [email protected]. represented the tenant, while Faith FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing Requests competitive sealed bids by Hope Consolo of Prudential Douglas shares of a company with the participation of a financial buyer. GCI: Growth capital investment ● represents new money invested in a company for a minority stake. SB M&A: Strategic buyer 11:30 a.m. on Nov. 30 for an elevator Mayor’s Fund to Advance New York City Elliman’s Retail Group and Joseph M&A represents a minority or majority acquisition of existing shares of a company without the upgrade. Work will include, but will not Seeks requests for proposals by 3 p.m. on Aquino of Douglas Elliman represented participation of a financial buyer. be limited to, the replacement of Nov. 22 for the establishment and the landlord. The asking rent was source: capitaliq elevator cabs, operating machinery and operation of the New York City Jobs- $1 million a year.

30 | Crain’s New York Business | November 1, 2010 20101101-A--0031-NAT-CCI-CN_-- 10/29/2010 7:05 PM Page 1

Vornado could walk away from JC Penney patio had been a bust the previous summer be- with a profit in any event. The REIT has cause of too much rain and cool weather.) Vornado bets earned $511 million on its investments in Mc- Tabla closes By the end of this summer,management had Donald’s, Sears and Sears Canada, though decided it could no longer avoid the inevitable. Continued from Page 2 that payoff didn’t thrill analysts. While sub- Continued from Page 3 “It’s been a labor of love, an artistic project,” will be only marginally profitable. stantial, it was just a one-time hit. tors. Some—like La Caravelle, which closed in says Mr. Meyer. It has been a learning experi- Hopes for the purchase were initially high With LNR, on the other hand, Vornado 2004 after a 43-year run—give customers a grace ence as well. He hopes to reopen another Indi- because of Vornado’s history of successful for- has made a potentially important wager on its period of a week or so to enjoy a final meal. an eatery someday, but in a smaller venue. ays into retail and its respected management own turf. Special servicers resolve and dispose Most of Mr. Meyer’s successful peers, in- team of Chairman Steven Roth and Chief Ex- of nonperforming property loans on behalf of cluding Drew Nieporent, of Nobu and Tribeca Employee job fair ecutive Michael Fascitelli. The company hit senior debt-holders. LNR is the largest, with Grill, and Stephen Hanson, owner of Ruby MR. MEYER is also weighing whether he should the jackpot in the early 1990s with its invest- $25 billion of loans in its portfolio. Foo’s and Dos Caminos, have shuttered several keep Tabla’s space at 11 Madison Ave.or sell the ment in department store chain Alexander’s. Experts say the investment could give Vor- restaurants during their long careers. lease, which has many years left on it. The In that case,Vornado liquidated the stores and nado detailed information about hundreds of “It’s remarkable that this is the first restaurant restaurant’s chef, Floyd Cardoz, is staying with redeveloped the real estate.Most notably,they distressed properties, many of which might Danny is closing,” says Mr. Nieporent. USHG to launch a new spot, the details of tore down Alexander’s flagship on East 59th end up for sale. But conflicts of interest could Tabla’s farewell will feature special events which Mr.Meyer declined to disclose—includ- Street and put up the skyscraper that is now arise, as LNR’s primary obligation is not to its such as a cooking class on Dec. 4 and an alum- ing whether it might be in the Tabla location. the headquarters of Bloomberg LP. owner but to ensure that the loans’ first mort- ni-chef dinner on Dec. 7, in which former “Indian food is still a trend waiting to hap- “The truth is that the Alexander’s example gage-holders get the best deal. kitchen staffers who are now at other restaurants pen,”says restaurant consultant Michael White- is a little old,” said John Guinee, an analyst at Vornado’s hiring of the three acquisitions will prepare a meal together.Suppliers are being man, president of Joseph Baum & Michael Stifel Nicolaus. executives and its new investment fund signal feted with an invitation-only breakfast. Whiteman Co. “It is complex and not well-un- that the REIT will be bidding more aggres- The decision to close Tabla was a long time derstood, other than several cliché dishes.” Bad precedent sively for properties. In the meantime, some coming, though USHG didn’t begin subsidiz- In the meantime,Tabla’s employees have not THE ANTICIPATED Toys “R”Us disappointment experts say Vornado’s failure to buy any office ing the restaurant until several months ago,says been left out in the cold.Some are being consid- has led many to fear that Vornado’s $600 mil- towers in three years could prove a blessing. Mr. Meyer, who adds that it is neither bankrupt ered for posts within USHG. And the compa- lion bet on JC Penney will be another letdown. For instance, Vornado walked away from the nor in arrears. ny is holding a job fair this month so that staffers Vornado has partnered with activist investor opportunity in 2007 to buy the Office Equity Ironically, this has been Tabla’s busiest year can meet with about a dozen Tabla management William Ackman of Pershing Square Capital Portfolio,an investment that turned into a dis- ever. Mr. Meyer and his partners began their alums now outside the company. Management on the JC Penney deal; between aster for almost everyone who touched it. last-ditch efforts to save the business late last “We’ll set up a bunch of tables around the them, they have gobbled up 26% of its shares. Additionally, prices haven’t dropped in the year,replacing the pricey prix fixe menu with the dining room,and the staff will be able to submit Mr.Ackman has previously bought stock in re- recession as much as expected. Boston Prop- more casual menu previously available only on their résumés,” says Paul Bolles-Beaven, a sen- tailers with real estate that he perceived as un- erties recently paid about $1,000 a square foot the ground floor of the bi-level restaurant. The ior managing partner at USHG, who came up dervalued. For example, he tried to push man- for 510 Madison Ave., and SL Green bought strategy succeeded in attracting more diners,but with the idea. agements at Target and McDonald’s to spin off 600 Lexington Ave. for $183 million, or $636 they were spending less money per meal. The Tabla’s pastry chef, Rachel Binder, says this some of their property, failing each time. Ana- a square foot—a modest 18% discount to the numbers simply didn’t work in the restaurant, is a far cry from her last restaurant closing,when lysts believe that Vornado and Ackman will at- market’s average price peak in 2008.And rents which had never been hugely profitable. she was given four days to pack her spatulas. tempt a similar strategy with JC Penney. continue to fall while vacancy rates remain The group then pinned its hopes on the “It has been very helpful that management Vornado and JC Penney executives de- stubbornly high. warm-weather season, when the 50-seat patio has been open and honest about the situation,” clined to comment for this story,and Mr.Ack- “Real estate looks expensive,” Mr. Knott opened. But few people wanted to dine outside Ms.Binder says.“They are using whatever con- man didn’t return calls. says.“It is hard to fault them for not buying.”Ⅲ during the record heat of July and August. (The nections they can to help us.” Ⅲ

THE HISTORY THE LOCATION THE FUNCTION SPACE THE ROOMS

CLASSIC FASHIONABLE AUTHENTIC GENUINE

MY HOLIDAY EVENT IS

November 1, 2010 | Crain’s New York Business | 31 20101101-A--0032-NAT-CCI-CN_-- 10/29/2010 7:06 PM Page 1

make much of a dent in the budget deficit or significantly reduce per- New guv’s battles pupil spending, which is higher here Cablevision fee fight than in any other state. Continued from Page 1 Medicaid reforms in 2007. He was Mr. Cuomo has also championed Continued from Page 1 they can muster to develop a second lators to support health and educa- undone by special-interest lobbying a cap on the annual increase in local ants games, the nightly local news revenue stream as advertising revenue tion cuts that under normal circum- and a stubborn Legislature. property taxes, which are the main and episodes of Glee. No broadcast comes under pressure.Not all negoti- stances they would bitterly oppose. The governor in 2011 can use the funding source for most New York channels have ever gone dark for so ations lead to war.On Friday,Fox and The other area that the governor slumping economy to his advantage, public schools. Resistance will come long. Dish Network solved their eleventh- must target is state operations.As the though.Four years ago,the public did from the powerful teachers unions The dispute, Cablevision’s third hour contract dispute. bank robber Willie Sutton famously not see the need to reduce health care and advocacy groups. major fight this year, has gotten so Some experts feel that the situa- said, that’s where the money is— funding because the state was flush “He’ll be taking money out of the bitter it may force the Federal Com- tion is getting so bad that the gov- Medicaid,schools and operations ac- with cash. Now that tax revenue has classrooms from the state budget and munications Commission to step in ernment may have to act.“The more count for about 80% of state spending plunged, even the health care indus- forcing local districts to take money and address the two-decade-old reg- that customers feel like they’re the in roughly equal shares. Paring per- try acknowledges the need for out of the classrooms from local ulations around retransmission fees. pawns of companies fighting out sonnel costs will entail a showdown change. In fact, it is already working budgets,” says Billy Easton, executive Those are the payments that broad- these business deals, the more likely with two powerful public sector on its own Medicaid reform to head director of the Alliance for Quality casters want for their over-the-air there’ll be pressure to get Congress unions,the Public Employees Feder- off more of the reimbursement rate Education, a coalition of parent and channels.Traditionally, cable opera- and the FCC involved,” says Kevin ation and CSEA,whose contracts ex- cuts that have hobbled hospitals dur- community organizations. “The tors have paid nothing for them. Werbach, a Wharton School pro- pire March 31, 2011. ing the economic downturn. combination would be dramatically Some observers have been trou- fessor who was an FCC official dur- The cuts must be made as federal damaging to the schools.” bled to see media giants wielding ing the Clinton administration. stimulus aid is evaporating and high Congress could help, too Extracting concessions from pub- their public airwaves networks to unemployment persists. SOME PROVIDERS appear ready to give lic employee unions has proved im- extract bigger payments for bundles Murdoch a match for Dolan “It’s kind of a no-win,”says Daniel ground on Medicaid’s sacred cows, possible during the two-year plunge of programming, while consumers OTHERS SAY that government action Feldman, whose book, Tales from the including eligibility, the quantity of in state tax revenues, but something absorb the costs and independent won’t happen anytime soon,and cer- Sausage Factory, recounts his 18 years services provided and end-of-life has to give when their contracts are cable networks are left with crumbs. tainly not if Republicans gain con- in the state Assembly.“What do you medical costs. Reducing the number up.“The state continues to have fiscal Cablevision can dig its heels in trol of the House. In the meantime, do,lay off people? That’s hardly going of New Yorkers eligible for Medicaid, problems, and public employees for long fights not just because the Cablevision may have met its match to kick-start the economy.” however, won’t be possible under the unions have been intransigent so far,” Dolans have thick skins. They also in Rupert Murdoch’s News Corp., State budget experts,however,say national health care reform that Ms. Lynam says.“There is an oppor- have a lock on which also enjoys the changes needed to curb state passed last spring. Federal law also tunity with the expiration.” their customers, a fight. spending are fairly obvious. What’s prevents the state from moving many Even if the next governor gets off who often sub- POPULARITY “Cablevision difficult is enacting them.“There’s no of its fee-for-service Medicaid pa- to a flying start, a dramatic turn- scribe to phone CONTEST is losing sub- shortage of ideas,”says Elizabeth Ly- tients, who account for 32% of en- around in 2011 is unlikely.“You can’t and broadband scribers and still Here’s a sam- nam, deputy research director of the rollees but 76% of spending, into undo years and years of bad policy services as well as pling of average appears to have Citizens Budget Commission. “It’s managed care. The next governor with one or two years of good policy,” cable. monthly sub- no way to win,” just [a matter of ] political will.” could push Congress to allow it. says Mr.Feldman.“This is going to be “Ten years scriber fees–or wrote BTIG Re- Working in the new governor’s Education will be another battle- a slow grind.” ago when some- the amount per search analyst favor will be the momentum of an front. Mr. Cuomo has said he wants “But there is one thing they can thing like this household that Richard Green- election victory and rising public dis- to move funding from wealthy school do,” he adds, referring to state law- happened, you cable television providers fork over to field in a blog en- various networks for the right to carry content with all things Albany. Of districts to poor ones, while Mr. Pal- makers.“When you find yourself in a would just their shows. Figures are for 2010. try last week. course, those conditions also existed adino proposes to consolidate dis- deep hole, stop digging.” switch to anoth- A spokesman when the last elected governor, Eliot tricts and reduce the number of ad- er provider,” says ESPN/ESPN HD $4.40 for Verizon FiOS, Spitzer, tried to push through major ministrators. Neither plan would Barbara Benson contributed to this report. Derek Baine, a Cablevision’s TNT $1.03 senior analyst archrival, says the with research FOX NEWS $0.70 company has ex- could help the chain gain traction firm SNL Ka- USA $0.57 panded call center internationally. gan. But 66% of hours and moved Teens Square retail “This store is going to be the Cablevision’s CNN/HLN $0.51 around its field brand’s foundation for global reach,” subscribers are MTV $0.35 forces to ensure Continued from Page 1 ity translates into hefty rents. Times says an Aéropostale spokesman. signed up for that customers can and Forever 21 Inc. opened massive Square retailing has not experienced Experts say big-name retailers in broadband, tele- A&E $0.26 switch services flagships within steps of one anoth- the declines seen in other districts the “bowtie”—where Seventh Av- phone and tele- FOOD NETWORK $0.13 quickly. “We have er.Their launches follow those of pi- during the recession, brokers say. enue and Broadway cross, between vision—a rate FOX BUSINESS NETWORK $0.12 been very, very oneers Billabong and Quiksilver, Forever 21 and American Eagle West 42nd and West 47th streets— higher than any busy since this two youth brands that leased out- are reportedly paying nearly $20 mil- can generate as much as $3,000 a other cable oper- HALLMARK CHANNEL $0.06 started,” he says. posts in the mid-2000s. lion a year each for their 90,000- year in sales per square foot. ator’s. Those so- Source: SNL Kagan He would not say Retailers have reason to storm the square-foot and 25,000-square-foot “Just about every company I called triple-play whether any Ca- revived ’hood.More visitors than ever multifloor stores; Aéropostale’s an- know that has a store there says it’s customers are blevision sub- are crowding the streets: 365,000 nual rent package is estimated to be among their highest-volume stores,” unlikely to “bail en masse,” he ex- scribers had signed up. people come to Times Square daily, around $10 million.Average ground- notes Ms. Gilliam. plains. Cablevision declined to com- an 8% increase over year-ago levels, floor asking rents rose to $691 a To take advantage of the neigh- As awful as the past couple of ment, but an executive at the compa- according to the Times Square Al- square foot in the first half of 2010, a borhood’s 24/7 appeal and help rack weeks have been for subscribers, it’s ny notes that the operator gained liance.The throngs provide the stores 15% rise over the figure for the same up sales, the new stores are offering been interesting theater for every- subscribers in the first quarter, when with access to a flood of internation- period last year, according to Cush- extended hours. While American one else as Cablevision and Fox have it had fights over fees with Scripps al teen tourists and their local coun- man & Wakefield’s midyear report. Eagle’s mall stores close at around 9 vied to cast each other as the villain. Networks and Disney. The Food terparts, who hang out at the new Some choice properties are renting p.m., its 1551 Broadway outpost is Cablevision claims that Fox is be- Network and HGTV went dark for pedestrian plazas so they can people- for almost $1,400 a square foot. often open till 2 a.m. Aéropostale ing greedy,demanding $150 million three weeks, and ABC for a day, in- and billboard-watch. keeps a 300-square-foot area open in annual fees for a suite of channels cluding the first 20 minutes of the “You get the sales and the brand- Benefits outweigh costs until 3 a.m. on weekends. An ex- that currently costs $70 million.The Oscars. Meanwhile, Fox stands to ing—what better place than Times EXPERTS BELIEVE that the benefits pected resumption of live broadcasts News Corp. division pooh-poohs lose substantial revenue,as local news Square for this type of retailer?” says outweigh the costs for retailers. at the MTV studio space, also at those numbers, and responds that and shows like Glee post steep ratings Jason Pruger, a senior managing di- “Times Square is not a bargain in 1515 Broadway, will further the cable operator pays itself $124 declines in the New York area. rector at Newmark Knight Frank terms of rent, but it’s a highly desir- strengthen the late-night teen fever. million for its own MSG and other In addition, Cablevision appears Retail.“It’s a youth-oriented and in- able place to be,” says Maggie “If you’re a kid coming into Man- channels that have much smaller au- to have motivated other players that ternational-type place.” Gilliam, who runs retail consultan- hattan via Port Authority, it’s a lot diences than Fox 5 and My9. would like to see changes in the re- Today’s Times Square contrasts cy Gilliam & Co. “In the summer- easier to go to Times Square than transmission consent rules. Small sharply with the seedy district of time and on holidays,the [foot] traf- SoHo,”says Ariel Schuster,an exec- Calls for arbitration system cable networks, for example, don’t yore,when hookers and heroin deal- fic is unbelievable; you can’t walk utive vice president at Robert K. ULTIMATELY, the fight is about the have the clout to demand more for ers roamed the streets and triple-X- down the street.” Futterman & Associates. 1992 Cable Television Act, which their programming, even if they rated peep shows abounded. Dis- Indeed, retail chains’ Times Experts envision more teen fash- gave broadcasters the right to nego- have significant audiences. ney’s arrival in the 1990s fueled the Square flagships tend to ring up the ion in Times Square’s future. Mr. tiate retransmission consent agree- “This has raised the level of entrance of similar family-themed most “ka-chings” at the cash regis- Schuster’s firm was just hired to ments for their over-the-air chan- awareness,”says Bill Abbott,CEO of retailers. Now fashion is taking over ter. Aéropostale’s 1515 Broadway market the 45,000-square-foot re- nels. Cable operators and public- the Hallmark Channel. The mid- as chains that are typically mall- location—which, at 19,000 square tail space at 1619 Broadway,at West interest groups want Congress to ranked basic cable channel gets just 6 based, such as Forever 21, move in. feet, is more than five times the size 49th Street. create an arbitration system that cents per subscriber, half of what op- Even Disney is opening a new store of the brand’s other stores—is ex- The former ESPN Zone, a would keep channels on cable dur- erators pay for barely watched Fox this month, following an absence of pected to far surpass the company’s 55,000-square-foot space at West ing disputes. Business Network.“We’re spending several years. average sales of $624 a square foot. 42nd Street and Broadway, is also Fox and other broadcasters,on the a lot of time in Washington on these The neighborhood’s new popular- The expected success of the outpost rumored to be on the market. Ⅲ other hand, want as much leverage as issues,” he says. Ⅲ

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54% of consumers will shop at discount stores for the holidays in 2010, down from 58% in 2009 BUSINESS LIVES The NPD Group Inc.

HOT JOBS EXECUTIVE INBOX

WHEEL OF FORTUNE: Sasha Graham makes Anne Fisher CHIEF EXECUTIVE $150 for a one-hour ORGANIZATION Spence-Chapin tarot reading. Services to Families and Children Will your kids JOB DESCRIPTION Leading the agency through strategic planning take over to ensure its work is relevant your business? MOST IMPORTANT TASKS Fundraising, serving as FOR A NO-HOLDS-BARRED PRIMER spokesperson, managing an on the perils of passing on a experienced staff company, it’s hard to top the late CREDENTIALS NEEDED Fund- Thomas Watson Jr.’s memoir raising expertise, strong man- Father, Son & Co.: My Life at IBM agement skills; nonprofit child and Beyond. welfare experience desirable Watson fils succeeded his SALARY Mid-$100,000s father as head of IBM in 1952 RECRUITER DRG and ran the company for 19 years. His arguments with his DOWNSIDE Having to stay ahead dad were “savage, primal, and of a changing adoption landscape unstoppable.” The younger Mr. UPSIDE Agency has a 100-year Watson also wrote: “I had very history, a strong reputation and a little doubt about my ability to distinctive culture manage IBM. I was much more Spence-Chapin focuses on concerned about whether I’d be finding homes for infants and able to manage Dad.” young children. It promotes Of course, most parent-child understanding through relationships are less contentious. counseling and public education and works to improve adoption’s Still, handing over a company to image and practice. grown offspring is almost always —BRIAN CHAPPATTA fraught with complications. Per- haps that’s one reason that “today, few children opt to stay involved with a parent’s company,” EXECUTIVE MOVES says Terry Mackin. His Dallas- based firm, Generational Equity, Colon Cancer consults on succession planning. Challenge Foundation: Among owners whose children Dale L. Mintz, 66, has been named executive want to follow in their footsteps, director of the the issues raised—including whom nonprofit. She joins to put in charge if more than one from Hadassah, where GOTHAM GIGS is interested—“can have a major she was director of effect not only on the business, corporate and foundation relations. but on the harmony within the Thunderhead: John McGee, 47, has been appointed president and global chief family,” Mr. Mackin says. operating officer for the technology “Timing is essential,” notes company. He joins from Adobe Her Future’s in Cards Dan Glickberg, who at 27 is an Systems, where he was vice president, buck ennis executive vice president at Fair- Americas field operations. way Market. “Is the next genera- Yodle: Louis Gagnon, 44, joined the local SASHA GRAHAM bought her first deck of tarot cards at age 12. “There tion ready to take over? If not, you online advertising company as chief ‘Everyone’s product and marketing officer. was a carnival at school, and having been born on Halloween, I felt could be setting them up to fail,” Formerly, he was senior vice president, issues are marked,” says the 39-year-old psychic. It wasn’t a positive experience. His father, Howie Glickberg, global products, at Monster Worldwide. She felt overwhelmed learning the meanings behind the 78 cards. 63, is chief executive of the Porter Novelli: Dr. Barbara DeBuono, 55, the same. $300 million firm. “I hope Dan has been appointed to the additional Then, her stepsister’s friend, who’d found religion, burned them, will be CEO someday,” says the role of global director of health and Romance, saying they were the “devil’s cards.” ¶ Ms. Graham, born in Saranac elder Mr. Glickberg, adding: “It is social marketing at the public relations hard to be a father, a boss and a company. She will continue as chief Lake, N.Y., to a free-spirited hippie mother, moved 27 times during medical officer. career, her childhood. Looking for structure—and an acting career—she business partner. As a father, I don’t like to correct him. But as Sequel Studios: Donald Friedman, 64, settled in Manhattan 22 years ago. She married, acted in B horror has been named principal of the money’ a partner, sometimes I have to.” branding, marketing and movies, became disillusioned, and went to Hunter College. By grad- Dan considered other careers communications consultancy. He was uation, she’d become pregnant and opted to stay at home. Once her 6- while studying English in college, most recently chief marketing officer at and suggests that other scions CA Technologies. year-old started school, she was ready to work.“Every day, I would ask do the same: “You really have to Syms Corp.: Beth myself and the universe, what can I do?” she says.“One day, standing Bronner, 59, joined take a step back and think about the off-price retailer’s in my kitchen, it came to me.The cards!” ¶ She graduated from the whether you could be happy board of directors. She Tarot School as a first-degree holder in 2008 and now makes $150 for [running the family business].” continues as a one-hour reading. In May, she will release her first book, Tarot Diva. managing director at DO YOU PLAN to pass your company Mistral Equity “Everyone’s issues are the same,” she says.“Romance, career, money.” on to the next generation? Tell us at See EXECUTIVE MOVES on Page 34 —alix strauss www.crainsnewyork.com/execinbox.

November 1, 2010 | Crain’s New York Business | 33 20101101-A--0034-NAT-CCI-CN_-- 10/29/2010 1:49 PM Page 1

RÉSUMÉ REVIEW Getting BAM for his buck Is your job search all it could be? We ask the experts. Producer scours globe ter opening night at BAM to see What has been your biggest success so other work around the world, so I far? NAME JOSE L. RODRIGUEZ for best programming; can make them an offer before an- It was last month.[The late German SUMMARY other company does. It is very com- choreographer] Pina Bausch’s com- Business analyst/project manager assisting Cuban ballet coup petitive. pany presented the U.S. premiere of key stakeholders of business units Vollmond. They did eight perform- BAM’s spring season starts on Jan. 7. PROFESSIONAL EXPERIENCE ances here in the 2,000-seat opera l BY MIRIAM KREININ SOUCCAR What are some of the highlights? house and sold out. EMC Corp., 2006-2008 For the first time in BAM’s history, Senior IT solutions consultant-project manager oseph melillo started out at we’re going to present the Na- And your biggest failure? Worked with business stakeholders and technical staff to the Brooklyn Academy of Mu- tional Ballet of Cuba. That’s a The biggest disappointment provide technical solution architecture, engineering, analytics and sic 25 years ago as the inaugu- big cultural event. was Edward Scissorhands, integration capabilities; created detailed Use Case documentation ral producer of its popular Next choreographed and directed during analysis phase of application development efforts JWave festival. Now, as the per- How did you get them to come to by Matthew Bourne. It l EMC Corp. at Pfizer Pharmaceuticals, 2001-2006 forming arts center’s executive Brooklyn? didn’t get the critical ap- Project manager, technical lead producer, the 63-year-old scours I worked with a colleague of praisal I had hoped for, so Conducted GAP analysis of current operating systems’ installation theaters and music halls around the mine who is representing therefore didn’t sell as well as processes to design a robust deployment method; created rapid world—spending at least one-quar- them, and I went to we had desired. deployment process to install necessary IT support hardware in regional ter of his time London to see training sites, decreasing total hardware imaging time from 75 to 15 traveling— their engagement What’s your second- minutes on average seeking the at the Coliseum. favorite cultural venue EDUCATION MOVERS & best work to The American in town? SHAKERS bring to Ballet Theatre I’m a big fan of the l Fordham University, M.B.A. candidate BAM’s stages. celebrated the Public Theater. l Baruch College, bachelor’s degree, management information systems founder of l Borough of Manhattan Community College, associate’s degree, Joseph Who decides the Cuban Who decides your computer science what the BAM troupe for budget for attracting Résumé appears in condensed form. audience sees? her 90th talent? Melillo EXPERT ADVICE I go on a birthday, [BAM President plane, train or and I got Karen Brooks Hop- Jose has worked for EMC Corp. for seven years, and it seems he had one subway to see a performance, sit in a to meet kins and I] develop promotion. This should be highlighted, as it is not stated properly. Jose’s dark room with others, and make a her. It’s a budget together résumé would also flow better if he removed the profile section and moved judgment if this production belongs all for the institution, education to the top. And since he is in an M.B.A. program, he should have at BAM. Nobody tells me what to through which is now at $40 an expected graduation date. Finally, I would remove the “key skills” section do. I am the barometer. relation- million. But having and actually use that in the “work experience” section. Jose would be better ships.This is me around is very ex- served by specifically speaking to how he used his skills to drive results. What’s the secret to landing the best a big coup. pensive. Each year, it —jason levin, senior account executive, Vault.com programming? gets more ex- The main challenge is for me to run pensive to do To contact this candidate or to be featured in “Résumé Review,” e-mail us as fast as I can to be on a plane af- our work. n at [email protected].

randy duchaine EXECUTIVE MOVES company. He was previously president was most recently of counsel at Buse human resources, a newly created He was previously managing director at of the platforms division of North Heberer Fromm. position. She was previously a human RREEF. America marketing services. Lilker Associates: Paresh Doshi, 42, has resources business partner at Textron KPMG: John Schneider, 45, joined as Continued from Page 33 DKC Public Relations: been promoted to director of health care Financial Corp. principal in the investment management Partners. Juliet Horn, 40, has engineering at the engineering firm. He Kaye Scholer: Andres Liivak, 39, joined regulatory practice at the audit, tax and Meritage Properties: Kimberly Harvey, been promoted to was previously senior associate director the law firm as partner in the life advisory firm. He was previously man- 40, was appointed managing director, executive vice of health care engineering. sciences transactions practice. He was aging director at Navigant Consulting. property management, for the Scarsdale, president. She was Sheraton Lincoln Harbor: Michael Zayas, most recently a partner at Reed Smith. Smith Gambrell & Russell: Porfirio N.Y., real estate company. She was most most recently senior 37, has been named general manager of Episcopal Social Ramirez, 58, joined the law firm as a recently general manager, Virginia, at vice president. the Weehawken, N.J., hotel. He was Services of New York: partner. He was previously a partner at Carr Properties. Krista Pilot, 40, has previously general manager of Four Elizabeth McCarthy, Alston + Bird. Cape Classics: Robert Bradshaw, 37, was been promoted to Points by Sheraton Manhattan SoHo 42, joined the Keefe Bruyette & Woods: Andrew Dietz, appointed president of the importer of executive vice president. Her former title Village. nonprofit as executive 40, was appointed managing director, South African wine. He continues as was senior vice president. New York Institute of Technology: Dave director. She was most real estate investment banking group. chief operating officer. Ed Tagliaferri, 50, has been promoted to Marcus, 50, joined as director of media recently chief He was most recently managing director Experian: Matt Seeley, 42, has been executive vice president. His most recent and public relations at the private operating officer of at Eastdil Secured. promoted to group president of the title was senior vice president. institution. He was formerly an Mercy/First. Fordham University: North America marketing services Cozen O’Connor: Dr. Winfried F.Schmitz, education reporter at Newsday. Aon Risk Solutions: Michael Sullivan, 44, Stephen Freedman, 60, business at the information services 56, joined the law firm as a member. He SNR Denton: Ricardo S. Martinez, 38, has has been appointed senior vice was promoted to joined as partner in the capital markets president, business development, at the provost. His was practice of the law firm. He was most risk management, insurance and formerly senior vice CORPORATE LADDER recently senior counsel at Allen & reinsurance brokerage. He was formerly president and chief Overy. director of the corporate client group at academic officer. Anchin Block & Nasdaq OMX. Venable: Brian MORE FUN AT SESAME WORKSHOP Anchin: Deborah de 9Threads: Pamela Daniela, 49, has been Dunning, 46, joined SESAME WORKSHOP, the nonprofit educational Vries, 37, has been named senior vice president of business the law firm as partner. He had been a promoted to development at the fashion, beauty and partner at Thompson & Knight. organization behind Sesame Street, has promoted accounting and audit retail marketing agency. She was Draftfcb Healthcare: Martin Laiks, 47, Anita Stewart to senior vice president of corporate partner at the formerly publisher of Four Seasons joined as executive vice president and partnerships. Ms. Stewart joined the Workshop in 2003 accounting and magazine. managing director of the marketing and is responsible for developing strategic corporate advisory firm. She Jenner & Block: Peter Pope, 52, joined the agency. He was most recently managing alliances and sponsorship programs for the was previously law firm as a partner. He was formerly a director at the health and wellness Workshop’s signature children’s series, Sesame managing director, audit services. partner at Arkin Kaplan Rice. practice at G2. Nancy J. Friedman Allen & Overy: Street and The Electric Company in the U.S., as well as Mark Schneider, 41, has been promoted Paul B. Keller, 39, has to tax partner. He was formerly Public Relations: joined the firm as apartner in the for co-productions throughout the world, including in managing director, tax services. Gabby Etrog Cohen, litigation practice. He had been a Brazil, China, South Africa, Mexico, Nigeria and India. Carolyn Izzo Integrated Communications: 30, has been partner at WilmerHale. Previously, Ms. Stewart worked at PBS as the national Kate Wark, 31, joined the Nyack, N.Y., promoted to media —maggie wells marketing and sales director of its sponsorship group. She has also held public relations and marketing firm as specialist, a newly senior vice president. Most recently, she created position. She positions at MobileComm Inc. as vice president of corporate and marketing EXECUTIVE PROMOTIONS communications, at Texaco as global director of advertising and sales was senior vice president at Middleton was most recently & Gendron. senior account manager. promotion, and at N.W. Ayer & Partners as senior vice president. The fastest way to get an announcement into FJC Security Services Inc.: Karen O’Neill, Invesco Real Estate: Peter Feinberg, 47, Crain’s is to submit details online. Fill out the form —VALERIE BLOCK 43, joined the provider of security joined the real estate investment firm as at www.crainsnewyork.com/submit. The personnel as corporate director of portfolio manager and senior director. Executive Moves column is also available online.

34 | Crain’s New York Business | November 1, 2010 20101101-A--0035-NAT-CCI-CN_-- 10/29/2010 1:51 PM Page 1 chemex / INSATIABLE CRITIC NETWORKING RECEPTIONS Gael Greene THURSDAY , NOVEMBER 11 flickr.com THE Attend a cocktail and networking reception celebrating NEW YORK ENTREPRENEUR WEEK AT SLATE NEW YORK, WEEK 54 W. 21st St. All attendees receive a DVD on nonverbal communication. VIP tickets are $250 and include entry Red-letter days AHEAD for two, unlimited drinks, listing as VIP sponsor on signage, and a gift. General tickets are $35 and include a premium NOV. 8-14 drink ticket and light food from 7 p.m. at Bar Basque to 8 p.m. E-mail [email protected] or visit www.nyew.org for more CONFERENCES information. Chodorow spot serves AND SEMINARS newscom MONDAY , NOVEMBER 8 ORKSHP W meals to love; Spanish THE NEW YORK SOCIETY OF SECURITY TUESDAY , NOVEMBER 9 WHAT HE’S ANALYSTS presents a special address from CAMBA presents Getting Started with chefs guest-star James Bullard, a member of the Federal Social Media. The class will discuss WATCHING Open Market Committee, as part of its primary social media tools, time ive jeffrey Chodor- High-Profile Speaker Series. Luncheon management and how to build a WHEN NEW YORK RANGERS hockey ow credit already. The is from 11:45 a.m. to 12:30 p.m., business’ bottom line. It is free and takes star Ryan Callahan isn’t on the guy is the matador of followed by the presentation from 12:30 place at Camba’s offices at 884 Flatbush ice, he likes to watch his favorite p.m. to 2 p.m. The event will be held at Ave., Brooklyn. Registration is required. restaurateurs.You could NYSSA, 1540 Broadway, on the 10th Call (718) 282-2500 or e-mail sitcoms, including The Office and ask, what has he done buck ennis floor. Members pay $50 and [email protected]. Entourage. The Blueshirt right Gsince China Grill and Asia de Cuba? UPPER CRUST: Seafood paella nonmembers $75. A live broadcast will wing, who helped the U.S. team Or you could ask, what hasn’t he be available online for $15 for members URAL CULTURALT EVENTS Pick take silver at the Olympic Games done? He is undaunted by the pub- and $25 for nonmembers. The deadline SUNDAY, NOVEMBER 14 in Vancouver, also loves football. BAR BASQUE BROOKLYN CENTER FOR of the lic’s discontent with Mix,whiny ob- to register is Nov. 4. Visit www.nyssa.org The Though he’s a native of Rochester, 839 Sixth Ave. to register. PERFORMING ARTS at week jections to 1,000 swords hanging from BROOKLYN COLLEGE N.Y., he roots for the San Francis- the ceiling at Kobe Club and slams (646) 600-7150 presents www.eventihotel.com MONDAY , NOVEMBER 8, AND TUESDAY, co 49ers. “I was a Steve Young over dancing fish at Wild Salmon. Tommy Tune in Steps in Time: A NOVEMBER 9 Broadway Biography in Song and Dance, fan growing up,” he explains. Now, the Chowd is back again at LADIES WHO LAUNCH presents the global at 3 p.m. The show, in which the nine- Though he doesn’t have a lot the Eventi Hotel with Bar Basque,a conference Dream It, Launch It, Live It, time Tony Award winner is backed up by of time for reading, Mr. Callahan celebration of the Spanish revolution, CUISINE Basque at 82 Mercer. The event will include the Manhattan Rhythm Kings, offers a did spend his summer break with put together by Terry Zarikian. Bar conversations with experts, panel look back at Mr. Tune’s career. Tickets Lone Survivor: The Eyewitness Basque has serious ambition with a PRICE RANGE Entrées $28-$39 discussions, breakout sessions and are $32 to $42 in advance, and $35 to Account of Operation Redwing hot young vibe. Spanish star chefs SERVING Breakfast, dinner 7 days the opportunity to network with $45 at the door. The performing arts dynamic women. The cost is $495, or center is at 2900 Campus Road. Call and the Lost Heroes of SEAL Team will be rotating through as guest RESERVATIONS Recommended toques.The night we came by,Daniel $295 for Strata members. Payment (718) 951-4500 or visit 10, a book by Marcus Luttrell, an NOISE LEVEL Lively buzz plans are available. To access a www.brooklyncenter.com for tickets and officer who was captured during García of Restaurante Zortziko in detailed agenda and to register, visit information. Bilbao was in residence, offering a an epic battle with the Taliban. I can’t wait to return. www.dreamitlaunchitliveit.com. —maggie wells six-course tasting menu—with Mr. Callahan calls it “riveting.” I will definitely go back. —VALERIE BLOCK squab five ways and roasted apple ice To view Crain’s classified events listings, go to www.crainsnewyork.com/events cream with liquid cheese—for $89. I’ll let them simmer awhile. But we stuck to the house menu, NO HATS Never again. curious to see what resident chef Yuhi Fujinaga could do. And mostly,we were wowed, starting with the ovals of elegant white bone china on amuse of truffled sheep’s milk in a the bare marble tabletop, ample pastry cone, pintxos of mushroom starched white napkins, red-han- croquetas and slow-baked piquillo dled steak knifes. Yes,it is very, very peppers. Some are hot and some are red. I find it sexy, glamorous, James not, and the challenge is that there Bondian. And I like the blue tech Expect us to be is no way to know which. code in the borders at the elevator. Stylish mackerel cuts in escabèche It’s good that we order only three took us all by surprise,its market sal- entrées—especialidades—because our YOUR PARTNER. ad with a vinaigrette made from the host sends out a whole delicately crisp Basque white wine and olive oil grilled sea bass with fennel, arti- of Txakoli almost as thrilling in its el- chokes and crisped ham as a fourth. egance as the fish. Calamari two The suckling pig is a disappoint- $29,000,000 $8,500,000 $8,500,000 $17,500,000 ways—fried and a la plancha,to drag ment. Under a cloak of perfectly Senior Credit Senior Revolving Senior Revolving Revolving Credit through rivulets of squid ink and gar- crisped skin, the big square of meat Facility Credit Facility Credit Facility Facility lic aïoli—had its own little salad,too. is dry and stringy, though I love the Provided for Provided for Provided for Provided for Quite frankly, we couldn’t get clever risotto alongside, a rubble of enough of the oxtail “ravioli”: small potato dice and mushroom. squares of crisp bread enclosing the A better choice is glazed veal meat, set in a puddle of red wine re- cheeks on rich potato purée, lapped duction with an herb salad as spicy as with red wine sauce. Then there’s Jennifer Lopez.There were just two, the paella, served in its baking pan; ASSET-BASED FINANCING and we were four; it proved tricky to the seafood is miraculously not divide each cube in half neatly. overcooked,and rice is waiting to be e’re helping businesses like yours grow. The battered fried egg on olive scraped from the bottom—the oil crushed potatoes with peppers obligatory soccarat.Still,if I had my See why we’ve earned our reputation as a leading provider of working capital and Serrano ham in a cheese broth way, I’d lock up the truffle oil. financing to growing companies. For more information, contact Warren Mino, President, was easily shared. Besides, we’d al- Except for a few pig issues, pos- at 212-806-4500 or visit us at Websterbcc.com to submit an online application for ready devoured the kitchen’s offered sibly balanced by the marvelous credit or find our nearest location. charcuterie: savory rounds of chori- charcuterie and jamón, I loved this zo, lomo (pork loin) and salchichón meal. I’d love to taste more: I would NEW YORK | BOSTON | PHILADELPHIA | HARTFORD | PORTLAND (a mild sausage),as well as acorn-fed love to indulge in a visiting Basque Fermin Iberian free-range, dry- chef ’s tasting menu (they will rotate cured ham, a perfection of texture every other month). But if I’m not NYSE:WBS* and savor,so discreetly salted.I tried racing back, it’s because entrées at ® in vain to remember a French or $28 to $39 are not my everyday din- Visit Websterbcc.com Italian ham I liked better. ner prices. All credit facilities are subject to the normal credit approval process. The Chodorow/Zarikian vision * The NYSE ticker symbol of WBS is assigned to Webster Financial Corporation and does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. here is as ambitious as the food. Copyright © 2010 by Gael Greene. Webster Business Credit Corporation is a subsidiary of Webster Bank, N.A. Member FDIC. Equal Housing Lender. The Webster Symbol and Webster Business Credit are registered in the U.S. Webster Bank, N.A. Member FDIC There are big squares and small Syndicated by www.insatiable-critic.com. Patent and Trademark Office.

November 1, 2010 | Crain’s New York Business | 35 CN014044 10/22/10 4:11 PM Page 1

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