20110530-NEWS--0001-NAT-CCI-CN_-- 5/27/2011 7:33 PM Page 1

INSIDE TOP TOP STORIES ENTREPRENEURS What’s the city’s AND THE WINNERS most innovative FOR 2011 ARE ... agency? You’ll ® PAGE 17 never guess PAGE 2 Blame boards for VOL. XXVII, NO. 22 WWW.CRAINSNEWYORK.COM MAY 30-JUNE 5, 2011 PRICE: $3.00 City Opera, Folk Art Museum troubles IN THE MARKETS PAGE 2 Applesauce’s odd Wall St. journey from China to public schools green PAGE 3 Secrets of Gotham’s pales drop in crime Pay droops along with THE INSIDER, PAGE 8 revenues, profits. It’s a Bold new brewer whole new world, NY seeks to tap the Bronx mystique BY AARON ELSTEIN NEIGHBORHOODS, P. 14 A job at Goldman Sachs may well be the closest thing in life to a golden USINESS IVES ticket. But even Goldman folks are B L feeling less wealthy these days. Aver- age pay per employee fell 14% last year, to more than a third below 2007’s peak. The explanation is simple.Business is down—way down—at Goldman CAP LEADIN KO: and elsewhere on Wall Street. Last caption readout KO week, the Stock Exchange go here and here and noted that the total pretax earnings here and here among its member firms fell more than 50% last year, to $28 billion. Revenues were down $30 billion, or 16%. Wall Street is on a downward tra- jectory, and its fortunes won’t be re-

crain composite image:crain bloomberg news, newscom, mcmullan patrick See IN THE MARKETS on Page 4 SEAGRAM’S ON ICE: The relationship between (counterclockwise from top) RFR Holding co-founders Michael Fuchs and Aby Rosen, and billionaire partner Peter Brant and his wife, Stephanie Seymour, started with a savvy deal but ultimately soured. GREG DAVID Actually, city’s jobs picture GOTHAM GIGS is brighter than many think Page 11 Bicycles built for one, by hand P. 27 ● ANNE FISHER Mastering the art of working the room P. 27 PRICKLY PARTNERS Retailers ● MOVERS & SHAKERS Morgans Hotel CEO makes suite deals P. 28 follow the ● GAEL GREENE Three Wanted: buyer for major stake in prestige hats for The Dutch P. 30 tower. Must play well with others money

INDEX Fuchs have left a trail of fractured partnerships in re- Private-label brands BY THERESA AGOVINO cent months. One of the reasons that billionaire Pe- VIEWPOINT ______10 ter Brant is unloading his share of the property is be- help stores control REAL ESTATE DEALS ______16 It’s not surprising that an opportunity to own cause of disparaging remarks the pair made about his profits and stand out CLASSIFIEDS ______22 49% of the landmarked has at- wife, former supermodel Stephanie Seymour.

FOR THE RECORD ______24 tracted major investor attention.Hailed as a master- Separately, investor Harry Lis is suing Messrs. piece of modern architecture, the sleek Rosen and Fuchs for allegedly withholding millions BY ADRIANNE PASQUARELLI HOT JOBS ______27 EXECUTIVE MOVES tower commands some of New York’s highest rents in proceeds from the sale of two buildings they owned ______27 and boasts some of its most elite investment firms as jointly. And last year, the duo split with noted hote- Items from new apparel brand Bar THE WEEK AHEAD ______30 tenants. lier Ian Schrager amid a reported clash of egos. III are flying off Macy’s shelves, with WEEK ON THE WEB ______31 But the asking price—said to be more than $700 “The problems in the real estate market put a lot young fashionistas grabbing the line’s

CHEAT SHEET ______31 million—may be the least of prospective buyers’ of pressure on partnerships,” said Dan Fasulo, man- floral dresses and sheer ruffled blous- concerns. Majority owners Aby Rosen and Michael See PRICKLY PARTNERS on Page 26 es. Bar III is not the latest creation from a hot designer but is one of Macy’s private labels, which the de- NEXT WEEK PEOPLE TO partment store designs, manufactures and markets in-house. WATCH IN SILICON ALLEY “Bar III has been on fire since its ELECTRONIC EDITION Meet the geeks, the execs and the financiers debut” in February, said Molly Lan- genstein, Macy’s executive vice presi- who are rebooting ’s economy dent of fashion and new business de- NEWSPAPER See RETAILERS on Page 26 20110530-NEWS--0002,0003-NAT-CCI-CN_-- 5/27/2011 8:00 PM Page 1

IN BRIEF THE BLOOMBERG ADMINISTRATION IS NYC deputy mayor’s ANGLING FOR UBS TO RELOCATE ITS investment banking unit to the city.The bank, facing mounting pressure from Swiss regulators, is considering New York, London and Singapore as alternatives to its current Swiss home, according to The Wall Street Journal. UBS is also considering moving its Stamford, Conn., operation back here as well. “As the global financial capital, with the world’s most talented work force and unsurpassed quality of life, New York City would be a logical place,” said a city Economic Development Corp. spokesman. AFTER A LONG DROUGHT, CORPORATE HOW GREEN WAS MY SPONSORSHIP FOR THE ARTS IS SHOWING AGENCY: Deputy Mayor Stephen Goldsmith (left) signs of life. Last week,The Museum of and Caswell Holloway, Modern Art and MoMA PS1 announced a head of his star two-year partnership with Volkswagen that will department, mark the museum’s most extensive corporate Environmental sponsorship ever. Under the terms of the Protection agreement, the German carmaker will help fund a major art exhibition at MoMA PS1 in 2013, sponsor a series of installations in MoMA’s sculpture garden, help expand MoMA’s online course offerings and donate to MoMA’s collection two works by the artist Francis Alÿs.The museum would not release the dollar amount of the sponsorship. Ⅲ BY THE NUMBERS

Weekly shift of the city’s economy é HOLD THE CHAMPAGNE Figures for spending by all-powerful consumers and for GDP growth surprised on the downside. Meanwhile, the latest jobless claims data showed a rise. 8 $7.3B 11.5% NYC-EUROPE AMOUNT spent BRONX’S April flights added this on Internet jobless rate, summer, out of advertising in U.S. highest in state, 19 U.S.-Europe in 1Q, up 23% 4.7 points above flights added from year earlier ’s Source: Source: Interactive Source: NYS Dept. Airline/Aircraft Advertising Bureau of Labor Projects Inc.

WATCH THE CLOSING DOORS Over the past year, more people have been crowding onto the city’s subways every day. buck ennis Two institutions for the arts o

to slash their budgets. But experts said it Poor management leaves New York City Opera, wasn’t the recession that brought down the Source: Metropolitan Transportation Authority American Folk Art Museum struggling to survive City Opera or the Folk Art Museum, but negligence by their boards. ADDICTED TO NUMBERS? stitution after being forced to sell its new GET A DAILY DOSE AT @STATSANDTHECITY BY MIRIAM KREININ SOUCCAR home on West to the Museum Plans should have been in place of Modern Art and retreat back to its pal- “The question is why their boards let CORRECTIONS New York City Opera chief George try 5,000-square-foot space across from these organizations go bankrupt,”said Geri Steel spent last week in meetings with his Lincoln Center. Thomas, president of ArtStaffing.com, a The profits from impact investing over the next decade are department heads,deciding how to cut the As two major Manhattan institutions consulting firm specializing in culture. estimated at $183 billion to $667 billion. The amounts were misstated in the May 23 story “Making philanthropy pay.” company’s 48-person staff. fight to stay alive, many cultural wags are “Everyone will say it’s the economy, and After taking the arts world by surprise a questioning their chances, while trying to that’s ridiculous. At this level of institution, Roosevelt Island has several sit-down restaurants. The nature of the existing eateries was misrepresented in the May 23 story few days earlier with the sudden announce- figure out how things went so wrong. they should have had plans in place.” “Life’s a new deal on Roosevelt Island.” ment that it was leaving Lincoln Center, “There are little theater groups and Former and current opera employees, Hedge fund mogul Philip Falcone’s wife is Lisa Maria Falcone. Her plans for where the opera company would small arts organizations that are failing all who spoke off the record, place the bulk of name was misstated in the article “At the head of the (High) Line,” go and what it would present next season the time,” said Toni Goodale, a fundrais- the blame on Susan Baker, who became published June 22, 2009. were still up in the air—decisions that are ing consultant. “But I’ve never seen two chairman in 2003.At that time,the organ- usually ironed out years in advance. major institutions in New York struggling ization had an endowment of around $55 vol. xxvii, no. 22, may 30, 2011—Crain’s New York Business (issn 8756- If that’s not bad enough,the company is for survival at the same time.” million—now it’s $9 million. Ms. Baker 789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., engaged in contentious labor negotiations Cultural institutions across the city oversaw the embarrassing hire of General 711 Third Ave., New York, NY 10017. Periodicals postage paid at New with its singers’union,which last week filed have been hit hard by the recession. With Manager Gerard Mortier,who resigned be- York, N.Y., and additional mailing offices. Postmaster: Send address unfair labor practice charges against the major government funding cuts and no fore his official start date,and an expensive changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: company and is seeking an injunction substantial upticks in individual and cor- renovation of the theater at his behest that Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one year, against its move out of Lincoln Center. porate giving, arts groups are being forced caused the company to go dark for a season. $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2011 by Crain Communications Inc. Meanwhile, just blocks away at the When Mr. Steel became general man- All rights reserved. American Folk Art Museum,trustees were LISTEN to a discussion at ager in 2009,he put together a smaller,less figuring out how to save that struggling in- CrainsNewYork.com/audio expensive season for this year. But opera

2 | Crain’s New York Business | May 30, 2011 20110530-NEWS--0002,0003-NAT-CCI-CN_-- 5/27/2011 8:00 PM Page 2 s high-water mark For lunch— To get innovation flowing, applesauce Goldsmith starts in the gutter BY JEREMY SMERD from China When he arrived at City Hall a year ago this week, Stephen Goldsmith was hailed as an outsider who would infuse Mayor Michael Bloomberg’s Records show schools buy abroad third term with fresh ideas.The new deputy mayor for operations quickly realized that New York, with its $65 billion budget, powerful unions and control over such purchases. fractious politics, is a far cry from his former domain of Indianapolis. BY SHANE DIXON KAVANAUGH Food from China represents a As a two-term Republican mayor in that Midwestern city, he had pri- fraction of what the DOE buys, ac- vatized the wastewater system and slashed red tape. But workers here, the Apples are the official fruit of cording to the statement. “We are wonkish former Harvard professor said last year, operate in “some of the New York state and the pride of its working with our distributors to buy worst systems I’ve seen or taught about anywhere.” agricultural system. No fewer than more locally,” the department said. Union rules stifled creativity. State laws undermined city autonomy. 21 varieties grow in the state,the na- A major challenge is that city law “I’ve not had an innovative idea in any meeting that’s legal,” joked Mr. tion’s second-largest apple produc- requires the agency’s food distribu- Goldsmith, 64. er.New York’s apples are sold far and tors to buy from the lowest bidder. But the deputy mayor did eventually find his showcase for the future of wide, including to the city Depart- city operations. Its name is the Department of Environmental Protection. ment of Education, which serves Whatever’s cheapest Yes,the agency responsible for providing tap water and treating sewage has applesauce in its schools. “Budgetary constraints are the emerged as a model for transforming the government itself. It turns out, however, that not all name of the game,” said Chris The man behind it is not an outsider, like Mr. Goldsmith, but a City that applesauce comes from the Buckley, president of Northeast Hall insider: Caswell Holloway, a former chief of staff to Mr. Goldsmith’s Empire State, despite the depart- Marketing Co., in Lakeville, Mass., predecessor. Unknown in environmental circles when he was appointed, ment’s pledge to buy more local which has imported applesauce Mr. Holloway, 37, has won over skeptics. food.In fact,at least some of it—the from China purchased by Driscoll “There are people who have ideas and people who implement the ideas. DOE won’t disclose how much— Foods of Clifton, N.J., a distributor Who is the real innovator?” said one former doubter, Peggy Shepard, exec- comes from China. for the Department of Education. utive director of We Act for Environmental Justice.“You have to give them Documents show that a food im- The commodities market is glob- credit in moving ahead aggressively and implementing some good ideas.” porter used by city schools pur- al and constantly shift- Policy papers, like PlaNYC and a green infrastructure plan, contain the chased thousands of cans of apple- ing, Mr. Buckley said, ideas. Mr. Holloway’s job is to bring as many as he can to fruition before sauce from Shanghai last year.Other and his company buys the Bloomberg era ends in 2013. data show that canned from whoever provides Whether Mr. Goldsmith can export them to the rest of city govern- pears, peaches, tuna the best price. Despite ment is another question. Other agencies may be hard-pressed to imitate and spinach from the transportation and other Mr. Holloway’s overhaul of his department, if only because, unlike DEP, Far East were also costs,sometimes that’s China. they don’t have independent revenue streams and may be more sensitive to dished out. Of the items Crain’s identi- political considerations. “The Department of fied,Driscoll bought nearly Education gets an ‘A’ all the school food from Criminal federal probation for serving applesauce,” China, including the ap- The department’s willingness to embrace new ideas and respond to crit- said Cecil Corbin-Mark, $142M plesauce. The company de- ics’ concerns represents a departure from its previous intransigence. The the deputy director of We AMOUNT that city clined to comment. Driscoll agency spent Mr. Bloomberg’s first two terms under federal criminal pro- Act for Environmental DOE spends on obtained most of the canned bation for workplace-safety and Clean Water Act violations. Justice, a nonprofit advo- meals annually fruit and tuna from importer Its probation ended Dec. 31, 2009. Mr. Holloway started as commis- cating for more locally grown Port Royal Premium, in Wood- sioner the next day, new playbook in hand. food in schools.“But it gets an ‘F’for bury, N.Y. Labels on the cans show See INNOVATION on Page 25 sourcing it 11,295 miles away … they came from China. and serving it from a can instead of The Department of Education fresh from a tree in New York state.” serves more than 860,000 meals a The DOE has promoted its ef- day at a cost of $142 million a year. “New York City Opera has every intention to pro- forts to serve nutritious food, which It is the country’s second-largest duce exciting and innovative work for the next 60 years,” is often purchased from upstate and public purchaser of food,behind the s on the outs a spokeswoman said. “We are focused on moving the elsewhere in the Northeast. It has Department of Defense. company forward with a responsible and balanced budg- highlighted lunch menus free of Some of the $20 million the et to ensure ‘The People’s Opera’ continues to thrive.” monosodium glutamate, trans fats DOE spends on produce has gone insiders said he made poor programming choices,stag- Though leaving Lincoln Center may be an inspired and artificial ingredients and has en- to local growers.The New York Ap- ing a long-running revival of Jonathan Miller’s The idea, observers said the way the move is being handled couraged school vegetable gardens. ple Association said it has worked Elixir of Love, when it had been presented in 2006. It may force the opera company to go dark for another The system gets 36% of its produce closely with the department in re- received strong reviews, but was poorly attended. season, and could ultimately result in its demise. and dairy from what it says are local cent years to bring more of the state’s City Opera executives have said they will soon an- “You don’t jump out of the boat unless you have producers, according to a statement, fruits and vegetables to city schools. nounce a new venue for next season.They just approved something to hang on to,” said a former employee. though it does not define “local.” “The [city] really leads the nation a budget that is substantially less than this season’s $22 “City Opera is completely in limbo. What director or in school food,” said David Mc- million,though they wouldn’t say how much.The com- set designer wants to work there?” Parents, politicians frustrated Clurg, vice president of marketing pany’s new chairman, Charles Wall, contributed $2.5 The Folk Art Museum faces a similar problem. Af- But food from China is not local for the association, which represents million as a challenge grant to help erase a $5 million ter defaulting on the $31 million of debt it took on to by any stretch of the imagination. more than 600 growers.“And they’ve deficit. So far, City Opera has raised more than $1.5 build a 30,000-square-foot home next door to MoMA, “It shocks me,” said Beatriz made some amazing changes.” million to meet the challenge. museum officials are developing a plan to stage exhibi- Beckford, a school food coordinator For example,city schools specify a tions around the city and send its collection on tour. with the Brooklyn Food Coalition. preference for New York apples when Museum experts are questioning why the Ms. Beckford, whose son is a pre- they are using federal funding. Even NEW YORK CITY OPERA WOES board hired Executive Director Maria Ann schooler in Bedford-Stuyvesant,said some upstate school districts in the Conelli, an academic with no experience running parents have tried to learn more heart of apple country don’t do that. a museum.Though many of the exhibitions under about where school food comes from But the association was surprised her direction were acclaimed,they failed to attract but with little success. to learn that the DOE gets apple- attendance. Besides questioning the board’s deci- “There are a lot of things we need sauce from halfway around the globe. sion to build a museum it couldn’t afford,observers information on,” she said. “Why not support local agricul- find it strange that a well-known Manhattan in- Councilwoman Gale Brewer in- ture if you’ve got to buy the apple- stitution can’t raise a fairly meager $31 million. troduced a bill early this year that sauce anyway?” a spokesman asked. The Folk Art Museum declined to comment. would require agencies to make “We’d put our apples and our apple- Now observers question its very survival. greater efforts to buy local food, but sauce against anyone in the world.”Ⅲ *City Opera presented fewer performances during the 2008-2009 season compared with 2007-2008 “If I was a collector thinking about giv- it has been tabled since February. In because its theater was being renovated. LISTEN to a discussion at Source: Audit reports ing my collection to them, would I now?” said any case, it excludes city schools be- ArtStaffing.com’s Ms. Thomas. “No.” Ⅲ cause state law gives the chancellor CrainsNewYork.com/audio

May 30, 2011 | Crain’s New York Business | 3 20110530-NEWS--0004-NAT-CCI-CN_-- 5/27/2011 6:43 PM Page 1

Crane test could tip balance IN THE MARKETS in labor contract negotiations by Aaron Elstein

Unions, employers istered by the Department of City- push for a national exam, led by the wide Administrative Services. But Real Estate Board of New York and are at odds over Locals 14 and 15 of the Internation- the Building Trades Employers’ As- Continued from Page 1 national certification al Union of Operating Engineers sociation, is about getting conces- versed anytime soon. That might have a stranglehold on the process sions from unions, not safety. sound like a well-deserved comeup- because it requires three years of pance for a group of too-big-to-fail BY DANIEL MASSEY training under licensed operators, Safety issue is doubted institutions that brought the world almost all of whom are unionized. The operating engineers unions to the brink. But the Street’s cash The Bloomberg administration Mr. LiMandri’s announcement did not return calls. Building and crash has repercussions for the rest is set to require tower crane opera- comes as labor leaders negotiate near- Construction Trades Council offi- of New York, which has become ac- tors to obtain a national certifica- ly two dozen contracts with the cials declined to comment. customed to the billions in taxes the tion, a decision that pressures oper- Building Contractors Association “The idea that this is about safety securities industry generates and the ators’ unions to make concessions in and the Contractors’ Association of is complete nonsense,” said a source additional jobs it supports. ongoing labor talks. TIME TO ACT Greater New York to re- close to the building trades who ar- No one cries for bankers.After all, “National testing ad- place ones expiring June 30. gued that most crane accidents are average pay at Goldman last year— ministered by an accredited The employers are pressing not caused by operator error. “They $431,000—was nearly eight times as body … provides us with to drop workers such as think if they can get the operating en- high as the median household in- the most up-to-date exams 2014 highly paid master me- gineers unions to the point where come in New York state,according to for today’s modern crane FEDERAL deadline chanics and rules like dou- there’s a greater possibility of getting Census Bureau data. Additionally, equipment,” said Depart- for city to meet new ble pay for back-to-back a nonunion operator on the job, Wall Street’s crunched profits were chillier everywhere. But the biggest ment of Buildings Com- crane standards shifts.Talks with Locals 14 they’ll be more willing to concede on still its third-highest ever and not far difficulty for banks is the lack of new missioner Robert LiMan- Source: Leichtman Research Group and 15 are expected to be other employees they represent.” below the bubblicious haul of 2006. revenue opportunities. There’s no dri in a statement. “These the most contentious. REBNY President Steven Spin- The mortgage boom that created growth in lending, and while exams mean more qualified crane A shift to national exams could ola, while acknowledging an impact those profits for banks is gone, of LinkedIn’s blockbuster stock debut operators, which increases safety.” lead to contractors hiring nonunion on contract talks, said, “Of course, course. So is the gusher of tax rev- might have some hoping for an IPO operators, increasing pressure on there’s a safety issue here.” Unlike enues from lucky bankers’ bonus boom, investors aren’t buying it. Federal deadline looms unions to give in to employers’ de- the city’s test, the national one re- checksthatfilled city and state coffers. Financial stocks are the only His spokesman would not say mands. Outside consultants recom- quires retesting every five years, has “The city has built 20 years of group in the S&P 500 to fall this when the change would be made,but mended national testing to Mr. Li- more exacting requirements for ex- budgets on a Wall Street bubble year, dragged down by Goldman sources said a process to implement it Mandri in 2009. The city had perience, prohibits crane operation that’s coming to an end,”said Nicole (-18% through last week) and Mor- could be in place by the end of June. already moved to a national exam for under the influence of alcohol and Gelinas of the Manhattan Institute, gan Stanley (-12%). Interest rates Mr. LiMandri said the certification mobile-crane operators, but had compels workers to train on the type a free-market-oriented think tank. near 0%—an extraordinary govern- will bring the city into line with new been slow to make the move on tow- of crane they will operate. Though it represented only ment subsidy and the chief reason standards established by the Occu- er cranes, largely because of lobby- “If everything gets solved tomor- about 5% of local jobs, Wall Street Wall Street made a record $61 bil- pational Safety and Health Admin- ing by construction unions. row on the labor negotiations,” Mr. was generating 20% of New York lion in 2009—will inevitably climb. istration,which must be met by 2014. The Building and Construction Spinola said, “we’re not going to state’s tax revenues and 13% of the Meanwhile, regulators are Crane operators in the city cur- Trades Council of Greater New York drop our position that we need na- city’s just before the clamping down on rently must pass a local test admin- has argued to city officials that the tional testing.” Ⅲ financial crisis. The banks’ riskier (and industry’s tax con- Boxed in, the more profitable) tribution has fallen trading activities. to 13% for the state big banks are Soaring trading rev- and 7% for the city enues—goosed with in the current year, getting more gobs of borrowed The Private Bank the state comptrol- money—were the ler’s office reports. parsimonious secret behind the big The tax dive will profits and bonuses only continue. In a of the boom. Banks report last week, the are now allowed to Independent Bud- use only about half get Office projected that Wall Street as much leverage in their trades. earnings would decline to $17 bil- Boxed in, big banks are getting lion this year before bottoming out more parsimonious. Compensation With you when at $12 billion in 2013. Meanwhile, used to consume fully half of Wall the city budget is forecast to grow 3% Street revenues. In addition to their !>#$! %&$!'$!()*# ! '*$ annually. sluggish income, firms are now re- More than taxes are at stake. It’s quired to conserve more capital. %'(&$!+)*$,&)-!+ estimated that each Wall Street job And shareholders are demanding creates another one elsewhere in the their piece of a shrinking pie. city,so a drop in the Street’s fortunes Only 44% of Goldman’s rev- directly affects the livelihood of oth- enues went to pay employees in the ers,from accountants and landlords to first quarter.Those revenues, by the restaurateurs and personal trainers. way, were about $1 billion less than Every family deserves a unique legacy. As your family story evolves, we’ll work closely with your trusted With its deal machine churning in the same period last year. advisors, offering objective guidance to help bring your vision to fruition. Generations have built, out offerings,Wall Street has at least Steve Eisman, a hedge fund man- preserved, and transitioned their wealth with the help of Wells Fargo. So no matter what your story is, you started hiring:Its work force is up by ager who identified the bubble long can rely on our strength, stability, and teamwork to help you move forward with confidence. To learn more 3,100 this year,according to Eastern before the herd, captured the grim about our wealth management solutions, visit wellsfargo.com/theprivatebank or call: Consolidated. But those jobs won’t mood when he gave a presentation at pay as much as they once did. a conference last week titled, “Are Jennifer Lee, Regional Managing Director U.S. Financials Dead Forever?” () - The cold heart of the matter “Investors last year hoped for rev- Business fell on Wall Street last enue growth, but it didn’t happen,” year because investors returned to he said. “They’ve given up.” Ⅲ Wealth Planning • Banking • Trust their bunkers amid fears of debt de- Investments • Insurance • Family Wealth faults in Europe. In addition, the fi- LISTEN to a discussion at nancial regulatory climate has turned CrainsNewYork.com/audio Investment and insurance products: NOT FDIC-Insured NO Bank Guarantee MAY Lose Value Wells Fargo Private Bank provides financial services and products through Wells Fargo Bank, N.A. and its affiliates. Deposit and loan products offered through Wells Fargo Bank, N.A. Member FDIC. Insurance products are available through Insurance subsidiaries of Wells Fargo & Company and underwritten by non-affiliated Insurance Companies. Not available in all states. Wells Fargo & Company THE LOSS—at least on paper—of the Blackstone Group, TPG Capital and its affiliates do not provide legal advice. Please consult your tax or legal advisors to determine how this information may apply to and the Carlyle Group when Freescale Semiconductor was taken your own situation. ©  Wells Fargo Bank, N.A. All rights reserved. 44% public last week, according to peHUB. The private equity giants bought Freescale for $17.6 billion at the peak of the market in 2006.

4 | Crain’s New York Business | May 30, 2011 Project12:fp template.qxd 5/3/11 3:54 PM Page 1

“Get paid to use less energy.”

WE’LL HELP YOU SAVE WANT TO SAVE BIG? Con Edison’s Green Team will pay your company to reduce its demand for electricity for short periods on the hottest days. Sign up for a Demand Response Program. Call for a customized program that’s right for you. CONNECT WITH THE GREEN TEAM AT CONED.COM/GREENTEAM OR CALL 1-877-870-6118 ASK ABOUT THE DEMAND RESPONSE PROGRAM.*

*Based on eligibility ©2011 Consolidated Edison Company of New York, Inc. Ad: Arnell Group ©2011 Consolidated Edison Company of New York, 20110530-NEWS--0006-NAT-CCI-CN_-- 5/27/2011 5:19 PM Page 1

NEW YORK,NEW YORK edited by Valerie Block

Straddling the Hudson with a brew adegast Hall & Biergarten was Ran instant hit when it opened in Williamsburg, Brooklyn, in 2006. Co-founder Andy Ivanov now aims to replicate that success at Pilsener Haus & Biergarten (right), soon to grace Hoboken, N.J. ¶ “We are trying to create an artsy Brooklyn approach, and I think there are enough people on this side of the river who want an authentic experience,” said Mr. Ivanov, a Czech Republic native who decided he didn’t want to commute after he moved to the Garden State with his family. His new partner, Ladi Sebestyan, is a fellow Czech from a family of brewers. ¶ Like Radegast, the 10,000-square-foot Pilsener Haus will feature live music, including jazz, swing and gypsy bands. It’s slated to open by the end of June. ¶ Meanwhile, the craze for beer halls (see Crain’s, April 11) continues in the city. Hospoda opened last week in the historic Bohemian National Hall on the Upper East Side. “This is all part of a craft-beer revolution,” Mr. Ivanov said. ¶ —lisa fickenscher

to do something new, you might Manhattan is we don’t have the as well not try anything at all.” large endowments that some of An unnamed foreign backer is the Manhattan groups do,” said financing the operation, which Lynn Kelly, chief executive of Snug includes a film and TV production Harbor. arm. Current projects include a —miriam kreinin souccar short film with Boardwalk Empire star Paz de la Huerta. —matthew flamm S.I. arts groups’ money blues Staten Islanders may soon have Bullett flies to ferry to Manhattan to get their to foreign markets cultural fix. The borough’s five main Pets get The summer issue of Bullett institutions, including the Snug hits newsstands this week in the Harbor Cultural Center and bargains, too U.S. and, for the first time for the Botanical Gardens, the Staten A proliferating gaggle of year-old quarterly, in 11 other Island Children’s Museum Groupon clones tout discounts on countries. Editor-in-chief and co- (below) and the Staten Island everything from spa treatments to founder Idil Tabanca is proud to Zoo, face a proposed city budget teeth whitening. Make room for report that this is also the first issue cut of about 50% for the next doggie day-care deals. in which the edgy, 200-plus-page fiscal year. All on city-owned In early May, former financial glossy doesn’t have a single ad. property, the groups receive a total analyst Matthew Kunkel launched At least not the conventional of $5.2 million in city funding; $1 ThePetDeal.com with $50,000, kind. Bullett also functions as a million of that is allocated to offering savings on creative agency for clients looking energy costs and is exempt from grooming, sitting to reach younger, luxury-oriented cuts.The remainder accounts for services and more. consumers, so a photo essay half of the nonprofits’ operating “There was a need includes shots of a Porsche (the budgets. for this in the pet car company is a client). Designer They have already reduced industry,” said Mr. Betsey Johnson, the subject of an hours and staff to deal with Kunkel, noting that pet interview and photo spread, previous cuts.They are now ownership in New York is bought 1,200 copies to sell in her considering shutting down for especially high—there are nearly stores. certain days during the week and 1.5 million dogs alone. “Besides Altogether, 25,000 copies will may even have to close altogether. being something where people be in stores and on newsstands, “All cultural groups are can save money, it’s a good way to with a cover price of $8.99.The struggling right now, but the find out about [pet] products and product placements blur the difference between Staten Island services in their area.” traditional line between ads and institutions and those in PetDeal, which is partnering editorial, but Ms.Tabanca says with 10 Manhattan businesses, Bullett is trying a different has already attracted nearly 1,000 model—one that she insists members. Mr. Kunkel, himself in doesn’t compromise the the process of adopting a dog, magazine’s vision. hopes to expand the business “When we started, we felt, ‘If soon. we’re going to use the old business “Brooklyn would be a logical model, just forget about it,’ ” Ms. next step,” he said. Tabanca said. “Unless you’re going —adrianne pasquarelli

6 | Crain’s New York Business | May 30, 2011 WE SUGGESTED THEY HIT A BUMP IN THE ROAD. HIT A BUMP IN THEY WE SUGGESTED TO HELP A CONSTRUCTION FIRM RUN SMOOTHLY, SMOOTHLY, FIRM RUN A CONSTRUCTION TO HELP LIABILITY WORKERS COMPENSATION WORKERS

PROPERTY PROPERTY COMMERCIAL AUTO AUTO COMMERCIAL load, making the roads safer for everyone. The bottom line is, our loss control programs work. programs work. load, making the roads safer for everyone. The bottom line is, our loss control keep you and your Plus, should an accident occur, we investigate quickly and thoroughly, our policy. For more broker informed and resolve your claim in a timely manner. That’s commauto. information, contact your broker or agent or visit libertymutualgroup.com/ When a construction company had a problem with gravel falling off their trucks and hitting trucks and hitting When a construction company had a problem with gravel falling off their that trucks were other vehicles, our Commercial Auto experts investigated the situation. Seeing to help settle the leaving their locations with loose loads, we recommended inducing vibration © 2010 Liberty Mutual Group. CN013730 5/21/10 3:32 PM Page 1 Page PM 3:32 5/21/10 CN013730 20110530-NEWS--0008-NAT-CCI-CN_-- 5/27/2011 5:16 PM Page 1

measure its particular impact.” Mr. Zimring, addressing an anti-crime group in midtown last UNCHECKED Check-casher loans? THE INSIDER week, said three other strategies EVERY DAY COULD BE PAYDAY for have “probably worked” in reducing New York state’s 700 check- CompStat by Jeremy Smerd and Shane Dixon Kavanaugh crime here: , gun cashing companies and thousands interdiction and increased of their customers, if an industry- manpower.CompStat—an intense backed bill clears Albany. focus on crime statistics and The bill would allow licensed mapping—is often hailed as a key check-cashers to lend as much as element behind the unprecedented 25% of a borrower’s gross monthly drop in city crime over the past two income, to a limit of $2,000. The The truth about decades, so the professor’s less- head of the new state Department newscom than-absolute endorsement is of Financial Services would set the interest rates for the loans, which could noteworthy. exceed the 25% limit set by New York’s usury laws. NY crime stoppers He was even less enthusiastic Critics, such as New Yorkers for Responsible Lending, warn that the about “broken windows policing,” annual interest rates of these loans could skyrocket into the triple digits, the Giuliani-era emphasis on spurring lending that might bury people in debt. Proponents argue that many n researching the stopping minor crimes in order to deter major ones. “Whatever was New Yorkers need small, short-term loans but have few options in low-income city’s policing going on in New York City [to areas that lack banks and credit unions. strategies for a reduce crime],” Mr. Zimring said, “People who realize that we’re their financial resource have often asked if forthcoming book, “it wasn’t ‘broken windows.’ ” they can get a loan,” said Edward D’Alessio, a lawyer with Financial Service He cheered the NYPD’s focus Centers of New York, a check-cashers trade group. “Over time, there criminal justice appeared to be an unmet need for credit.” Franklin Zimring on high-crime areas and corners Iexpert of where drugs were openly sold. Perhaps, but high-interest loans are not the answer, said state Sen. the University of California, Drug use has not decreased, but Gustavo Rivera of the Bronx. Berkeley found no clear sales have moved into people’s “We should not be encouraging what amounts to a predatory financial evidence that stop-and-frisk apartments; gone are turf wars practice on poor communities,” he remarked. between dealers. Yet the bill has gained traction, especially among legislators in low-income is effective. While use of the “That’s when the guns come communities where check-cashers serve as the go-to financial institutions for tactic has coincided with a out,” he said. residents. It passed the Senate Banking Committee in mid-May. drop in crime, it cannot be The check-cashing industry has lobbied hard for the bill over the past few isolated as a cause because, years. Between January 2008 and April 2011, Financial Service Centers of Truck statistics New York and its members contributed almost $600,000 to state elected he said, it is “part and taken for spin officials’ campaigns, according to an analysis by the New York Public parcel” of other proven Interest Research Group. strategies: hot-spot policing istock photo The state Legislature passed a The industry employs about 4,000 people in New York state and cashes bill last week, at Mayor Michael $15 billion worth of checks each year. and cracking down on public drug markets. By itself, stop- Bloomberg’s request, to require and-frisk in other cities has not reduced crime, the law mirrors that enable truckers to professor said. better see pedestrians. Meanwhile, William Bratton, former commissioner of the New York the state Motor Truck Association pedestrians in the city. No good deed Crain’s issued a statement noting that But a city Department of Police Department, told that stop-and-frisk is “an trucks account for just 4% of fatal Transportation spokesman said the goes unpunished essential element of policing,” but agreed that “it’s hard to or serious injuries incurred by proportion is much higher— 19%—if only fatal accidents are When some Queens co-op counted. owners went ballistic in January The truckers group did not over increases of up to 147% in directly attack the bill, saying, “We assessed property values, city believe even one injury is too Finance Commissioner David many.” Frankel did something unheard-of: He capped this year’s increases for REQUEST FOR PROPOSALS Class 2 property, which includes Ravitch shocked co-ops, condos and rentals, at 50%. Extraordinary Lease Opportunity by firm’s demise Some called his action insufficient, but there’s another in Former Lt. Gov. Richard Ravitch problem: It might be illegal. was surprised and saddened to hear “I don’t believe the commissioner of the liquidation of HRH can, by administrative fiat, do this Construction, which was detailed and comply with the statutory in the May 23 issue of Crain’s. framework,” said real estate attorney “My Joel Marcus. grandfather Mr. Frankel’s spokesman said started that the commissioner’s move was company in indeed legal. 1925,” he said. Mr. Ravitch (right) joined NYS tax revenue the firm in lags nation’s 1960 and spent nearly two State tax revenue increased 6.2% decades there, newscom in the first quarter of 2011 versus focused on affordable housing. the year-earlier period, but growth “We built 40,000 apartments,” lagged the 9.1% national rise, he said, “but also the Citicorp according to a new analysis by the The MTA is seeking proposals from experienced retailers/restaurateurs to lease a Center, the Whitney Museum, Rockefeller Institute. 15,230 square-foot space on the East and North Balconies within Grand Central hospitals and office buildings.” State corporate income tax Terminal, New York. This is a premier location for a flagship store or restaurant, with The company was sold to revenue grew 15.3%, compared a lease term of up to 20 years. Starrett Corp. in 1977. with 6.9% nationally; sales tax Mr. Ravitch, also a former MTA revenue climbed 12.7%, compared All proposals will be publicly disclosed in the agenda for the meeting of the MTA Board, at which the transaction will be considered for approval. All contacts relating to the Request for Proposals must be made through the individuals who are chairman, said he had heard with 5.6% nationwide. But personal designated as “Points of Contact” in the Request for Proposals. Contact with anyone else at the MTA relating to the nothing about HRH for 20 years income tax revenue rose only 3.2% Request for Proposals may be a violation of the law and may result in disqualification. until a Crain’s reporter told him of in New York, versus 12.4% Ⅲ This RFP is at www.mta.info/mta/realestate, or contact Nicole Aguirre-Filder at the Chapter 7 bankruptcy filing. nationally. 212-878-1281, or [email protected]. For daily political and government news, subscribe to ©2011 Metropolitan Transportation Authority CRAIN’S INSIDER @ www.crainsnewyork.com/insider

8 | Crain’s New York Business | May 30, 2011 20110530-NEWS--0009-NAT-CCI-CN_-- 5/26/2011 8:10 PM Page 1

TOURIST TALLY terms of the international base,” said George Fertitta, CEO of NYC & Orlando rises above NYC New York City visitors in 2010 Company, the city’s official tourism bureau. Mr. Fertitta also pointed out that Orlando includes outlying Florida’s Disney by 2012.Last year,48.7 million peo- executive of Visit Orlando, credits a 48.7 counties in its tally. ple visited New York. new marketing campaign,“Orlando million Mr.Sain confirmed that his agen- city sets record with Orlando tourism officials Makes Me Smile,” with helping the Orlando visitors in 2010 cy included visits to Seminole,Osce- rubbed their record number in com- city reach its milestone. He also ola and Orange counties (Orlando is 51.4 million visitors petitors’ faces last Tuesday, an- pointed out that Orlando is one of in Orange),but said that the vast ma- nouncing that the Florida city is the the lowest-airfare markets in the jority of travelers come to Orlando. most-visited destination in the U.S. and that a new attraction at 51.4 From a hotel room occupancy million BY LISA FICKENSCHER country. It is a claim that New York Universal Orlando—The Wizard- and rate perspective,New York City Sources: NYC & Company, Visit Orlando City made in January 2010, when ing World of Harry Potter—also surpasses both Orlando and Las Ve- Oh, no, Orlando! The Disney Mayor Michael Bloomberg crowed helped lure more visitors. gas. Each of those cities has more tourist town in Florida attracted a about the previous year: “For the “There was pent-up demand for national visitors. Just 3.6 million of than 100,000 hotel rooms, com- record 51.4 million visitors last year, first time in 20 years, we were the Orlando,since a lot of people cut out Orlando’s visitors come from abroad, pared with New York’s 85,000 or so, becoming the first U.S.city to top 50 most popular tourism destination in travel in 2008 and 2009,” he added. compared with New York’s 9.7 mil- according to Scott Berman, princi- million—well before the Big Apple, the country, surpassing Orlando.” On the bright side for New York, lion foreign travelers last year. pal of the hospitality and leisure which expects to achieve that goal Gary Sain, president and chief Orlando did not attract more inter- “No one comes close to us in practice at PwC U.S. Ⅲ Amazon launches American Airlines Flagship Lounge, JFK Terminal 8 publishing house Imprint will produce print and e-books; industry vet to lead

BY MATTHEW FLAMM

After having dipped one toe af- ter another into book publishing, online retail giant Amazon.com will dive in with the launch of a New York-based publishing house later this year.The yet-to-be-named im- print will produce books in both print and e-book formats. Amazon has picked industry veteran Larry Kirshbaum to be vice president and publisher of the new division, according an e-mail that Amazon Publishing Vice President Jeff Belle sent to literary agents last week.Mr.Kirshbaum,67,will begin his new job in July. The former chairman of the Time Warner Book Group, who has been running a lit- erary agency in recent years, is still a high-profile figure in the industry. Amazon has lately been launch- ing digital imprints, like Montlake Romance and Thomas & Mercer for thrillers. The new imprint will be a general-interest publisher that will Premium Check-In. PriorityAAccessSM. put out literary and commercial fic- The Admirals Club® and Flagship Lounge®. tion and nonfiction. For several months, Amazon had First and Business Class cabins. Arrivals Lounges. been looking for a publisher to launch a New York operation, ac- Our premium travel experience gives you cording to executives who were con- the luxury and convenience you expect. tacted. High on its list was someone with connections to best-selling au- And the comfort you deserve. thors, whom the new imprint could poach to jump-start its business. One stumbling block for any Amazon imprint will be convincing Barnes & Noble and independent booksellers to carry its titles. Ama- zon has partnered with Houghton Mifflin Harcourt for print editions of its original e-books,and may con- tinue to do so, according to industry e-newsletter Publishers Lunch. AmericanAirlines, PriorityAAccess, Admirals Club, Flagship Lounge and AA.com are marks of American Airlines, Inc. oneworld is a mark of the oneworld Alliance, LLC. © 2011 American Airlines, Inc. All rights reserved. An Amazon spokesman did not respond to a request for comment. Ⅲ

May 30, 2011 | Crain’s New York Business | 9 20110530-NEWS--0010-NAT-CCI-CN_-- 5/26/2011 8:58 PM Page 1

VIEWPOINT For real: a functioning Albany editor in chief Rance Crain publisher, vp Jill R. Kaplan erhaps Gov. Andrew Cuomo was correct: bill with no guarantee that the state would relax mandates EDITORIAL editor Xana Antunes Albany was broken, but not beyond repair. that force school districts to spend money against their will. managing editor Glenn Coleman All it needed was the right mechanic. And The linking of bills has in past years been standard procedure deputy managing editors Valerie Block, Erik Ipsen Mr. Cuomo has proved to be just that. in Albany; too often, it sabotaged the legislative process. assistant managing editor Erik Engquist In light of Albany’s recent accomplish- A major reason for the change, it appears to us, is that senior producer, projects Kira Bindrim senior producer, news Elisabeth Butler Cordova ments, including a timely and responsible trust has grown between the two legislative branches and the contributing editor state budget and last week’s agreement to governor. Senate Republicans are confident enough in Mr. Elaine Pofeldt columnists Greg David, Michael Gross, cap the growth of property taxes, state government may yet Cuomo’s ability to deliver mandate relief that they were Alair Townsend lose its longtime label of “dysfunctional.” willing to pass a tax cap without it. Assembly Democrats pulse editor Barbara Benson P senior reporters Theresa Agovino, It turns out that the standard laws of politics do indeed seem certain that they will get stronger rent regulation, and Aaron Elstein, Lisa Fickenscher, exist in our state capital. It had just been so long since they so were amenable to capping property tax growth outside of Matthew Flamm, Miriam Kreinin Souccar reporters Marine Cole, Amanda Fung, were properly applied that voters had begun to write off the New York City first. Shane Dixon Kavanaugh, Daniel Massey, whole town. Since taking office in January, Mr. Cuomo has Mr. Cuomo has also Adrianne Pasquarelli, Jeremy Smerd Trust has grown art director Steven Krupinski adeptly leveraged his popularity and used a combination of been able to keep deputy art directors Carolyn McClain, carrots and sticks to persuade lawmakers to act. between the special-interest groups Daniel Mednick staff photographer Buck Ennis In response to earlier criticism that his promises were Legislature and largely at bay. In some copy desk chief Wendy Zuckerman short on specifics, the governor had said he was leaving room cases, he’s quietly copy editor Thaddeus Rutkowski research editor Dana Gordon to negotiate. Events have borne him out: The property tax the governor pledged to get to their assistant research editor Suzanne Panara debate led to a compromise, instead of the usual stalemate, issues soon. In others, research assistant Suzanne Bernard research intern Laura Shin with Republicans and Democrats tweaking the deal just he’s insulated legislators editorial intern Benjamin J. Spencer

enough to satisfy their constituencies (except for the state from the effects of EDITORIAL AND ADVERTISING OFFICES teachers union). advocacy campaigns by 711 Third Ave., New York, NY 10017-5806 Sheldon Silver’s role in these developments should not be taking his case to the people. editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0259 understated. Often characterized as an obstructionist who In all, it’s been a masterful job by Mr. Cuomo, with strong Cable craincom nyk takes arrows for his members to keep their loyalty, the Assem- supporting performances by legislative leaders.The new Fax 212.210.0499 bly speaker has shown leadership in his chamber throughout Albany is just 5 months old but is off to a promising start. Entire contents ©copyright 2011 Crain Communications Inc. All rights reserved. the session. Not long ago, it would have been inconceivable for We’re optimistic that we’ll see a same-sex marriage law, ®CityBusiness is a registered trademark of MCP Mr. Silver to agree to a property tax cap, given his fondness for pension reform and—in the longer term—a more open Inc., used under license agreement. education funding and the New York State United Teachers. legislative process with less of the sophistry and spin that TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. He would have insisted that it be tied to some unattainable have given Albany a bad name. $3.00 a copy, $59.79 one year, $109.79 two years. piece of legislation on the Assembly’s wish list. Last week, Mr. Silver even said his conference would not www.crainsnewyork.com On the Republican side, Senate Majority Leader Dean leave town without passing an ethics bill. ADVERTISING AND MARKETING Skelos prevailed upon his members to pass the property tax If this is a dream, don’t pinch us. advertising director Trish Henry senior account managers Courtney McCombs, Sheryl Rose, Suzanne Wilson sales manager, classified print & online John Gallagher sales coordinator, print & online OMENTS CRAIN’S ONLINE POLL C Lulé Haznedari newsletter product manager Alexis Sinclair WHAT SHOULD credit Todd J. Masura 313.446.6097 marketing director Amy Crossman THE CITY’S assistant marketing manager Back to study hall, critics Sabra Harrison NEXT director, audience development LIVING-WAGE BACKER LOW-SKILLED WORKERS Michael O’Connor SMOKING MISSES THE MARK GET SHORT END OF L.A. LAW senior audience development manager TARGET BE? Tarek Cotran Paul Sonn (“Living wage in practice in Paul Sonn claims that Los Angeles offers director of e-commerce strategy Date of poll: May 23 L.A.,” May 23) provides an inaccurate and New York a “nuts-and-bolts guide” on how to Kristi Serrano 250 votes unfair assessment of the city Economic mandate a “living wage” without negative web developer, interactive Development Corp. study of proposed “living consequences.The rhetoric is impeccable, but Chris O’Donnell New York City. We Apartments. wage” mandates in New York City. the facts don’t back it up. NEW YORK PRODUCTION Smoke seeps should be the first The city’s study is based on a comprehensive According to research published in the production and pre-press director

city to ban cigarettes. into neighboring

apartments all look at data on workers, households, Southern Economic Journal, evidence from L.A. Michael Corsi . the time. employers, and real estate developers and suggests an unintended consequence of its advertising production manager

13% financiers. It is objective and applies methods living-wage law: Employers replaced less- Suzanne Fleischman Wies

that have been vetted by reviewers and skilled employees with workers who had more . PUBLISHED BY CRAIN COMMUNICATIONS INC. 13% discussed with organizations from all sides of formal training and other desirable chairman Keith E. Crain

the debate. It provides the only quantitative characteristics. president Rance Crain . 62% . estimates of the economic impact of proposed In other words, not only are jobs lost as a Merrilee Crain 12% secretary wage mandates here. direct result of a wage mandate, but there’s also treasurer Mary Kay Crain Mr. Sonn suggests that the study should a hiring shift toward workers whose greater executive vp, operations William Morrow have focused on Los Angeles policies to infer skills justify the higher wage. senior vp, group publisher Gloria Scoby There group vp, technology, circulation, shouldn’t be one. Sidewalks. results for New York. Mr. Sonn ignores the fact —michael saltsman manufacturing Robert C. Adams Nanny Bloomberg Dodging clouds that L.A.’s living-wage ordinance does not Research fellow vice president/production & of smoke—ick. has done enough cover tenants in private developments, as New Employment Policies Institute manufacturing David Kamis Puff at the to reduce York’s proposes to. L.A. is simply not an chief information officer Paul Dalpiaz secondhand curbs, people. smoke. appropriate case study for the potential effect CRAIN’S WELCOMES SUBMISSIONS to its opinion founder G.D. Crain Jr. (1885-1973) of the legislation. pages. Send letters to [email protected]. chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: Go to —francesco brindisi Send columns of 475 words or fewer to www.crainsnewyork.com/poll to have your say. Chief economist [email protected]. Please include the writer’s New York City Economic Development Corp. name, company, address and telephone number.

10 | Crain’s New York Business | May 30, 2011 20110530-NEWS--0011-NAT-CCI-CN_-- 5/27/2011 3:15 PM Page 1

OPINION

lando was the first U.S.city to attract more than 50 million tourists in a NYC doing better year means only that it has regained a very small lead on New York. Thanks to the Federal Reserve Board’s quantitative easing known as than you think QE2, which had the effect of weak- ening the dollar and guaranteeing a flood of international visitors, New he unofficial start of summer is an opportune time York should break the 50 million to assess how New York is doing so far this year, mark for sure this year. With some- and the news may shock some people. The econ- thing like 30 new hotels opening, employment is going to jump as well. Every week, Crain’s dives deep into a omy is gaining momentum in a broad-based re- Not to be forgotten is the now specific industry that drives the New York covery, Wall Street is proving just how resilient noticeable rise of Internet compa- economy. Get the inside story – in print those despised traders and investment bankers are, and tourism nies. Online retailer Gilt Groupe and online at crainsnewyork.com T just hired its 700th person, quite a just keeps growing. trajectory for a 4-year-old company. In the first four months of the year, seasonally adjusted data The drag on the economy comes from two areas: construction, where from Eastern Consoli- industry from the state no pickup is likely,and government, dated show, New York comptroller predicted which will be shedding jobs through City added just under that Wall Street would attrition, if not layoffs. 40,000 jobs. In the 19 shed some 7,000 jobs It’s true that manufacturing is months since the city’s this year as firms adapt- also contracting. But it accounts for economy hit bottom, ed to the new rules under such a small part of the economy— New York has regained Dodd-Frank and that 1.8% of all jobs in the city and half the jobs lost in the profits would be hurt by falling—that it doesn’t have an im- downturn; the U.S. as a the tighter regulations pact the city’s economic health. whole has recovered and higher interest rates. Unemployment remains unac- only one in five. That’s Instead,securities in- ceptably high, but that statistic is quite a performance. GREG dustry profits last year less and less the best way to take the The expansion en- DAVID were the third highest pulse of the economy. Many of the compasses every impor- ever and payrolls have in- jobless lack the skills that are in de- tant industry but two. creased by 3,100 so far in mand and represent a long-term In fact, if the pace of the first four 2011.One obvious conclusion is that structural problem in New York and months continues, an unlikely but traders and others jettisoned by big the rest of the nation. Unfortunate- possible scenario,the city’s job gains firms are landing with hedge funds ly, it’s a problem that will not be in 2012 would be record setting. and other boutiques and staying in solved solely by economic growth. The biggest surprise is Wall New York, rather than heading over Street. Last November, the usually the Connecticut line to Greenwich. LISTEN to a discussion at authoritative report on the securities Meanwhile, the news that Or- CrainsNewYork.com/audio

Large companies address these is- sues more efficiently than other busi- Health exchanges: nesses through benefit management departments.These help make them employers of choice, able to recruit the best staffers—often from the applying lessons small enterprises that trained them. The inherent loss of return on in- vestment and retraining becomes an BY VINCENT C. ASHTON additional cost to small businesses. Most employers don’t want to iscussions about the New York state health in- face the impossible task of choosing surance exchange have become intense. The one or two health plans that are best for all of their workers. Such choic- failures of the state’s individual, sole proprietor es inevitably lead to more losers than and small group markets have produced com- winners, creating employee discon- peting recommendations, many of which ad- tent. Conversely, most staffers— dress the needs of one group at the expense of another. Because who often contribute more to their D premiums than their companies there has been so little success in these three markets nation- do—prefer to have more choices, so wide, recommendations are often based upon untested theory that they can find better matches for their health needs and budgets. or undocumented assumptions. too much of a burden on the small Both employers and employees HealthPass New York is a self- business owner and compels most want access to the complete range of sufficient, commercial, nonprofit workers to choose between being products,and they want access to in- exchange,similar to the Small Busi- under- and overinsured. novations when they become avail- ness Health Options Program Ex- l Employers and employees want able.For them,simplifying the mar- changes required by federal health robust choice and market simplifi- ket means eliminating product care reform. HealthPass—which cation. duplication,giving them the ability to covers almost 4,000 small business- In addition to premiums, other filter product options and make ap- es and nearly 30,000 employees and significant costs in providing cover- ples-to-apples comparisons online, dependents—has served such en- age come in the form of the time,en- and including easy-to-understand terprises in the New York City area, ergy and manpower expended in try- information on value and quality. including sole proprietors, for 12 ing to find one or two products that If New York’s SHOP Exchange years. During that time, we have will meet the needs of as many em- is designed to heed these lessons and For advertising information, please contact learned three essential lessons: ployees as possible.Then there’s man- provides what small firms and their l Premiums are only part of the aging enrollment and renewal, Co- employees need and want, we will Trish Henry, Advertising Director at cost for small businesses that pro- bra and myriad other administrative have truly reformed this market. [email protected] or vide health benefits. details, plus assisting workers with 212.210.0711 l The current model for employ- coverage-related medical and cost Vincent C. Ashton is executive director of er-sponsored health benefits places issues, claim disputes, etc. HealthPass New York.

May 30, 2011 | Crain’s New York Business | 11 20110530-NEWS--0012-NAT-CCI-CN_-- 5/26/2011 8:58 PM Page 1

OPINION

aries of defined-benefit pensions, it will represent yet another missed op- Tweaking won’t solve pension crisis portunity to reform the state’s pen- sion system. The problem is not only the sys- The state’s own pension bill has long-awaited proposals for dealing tem’s cost but its basic structure, BY E.J. MCMAHON increased 50%, or $500 million, in with the pension-cost crisis. which is dauntingly complex, en- the past three years. It would be Among other things, the gover- courages excess and abuse,and need- n his opening message to the Legislature, Gov. Andrew climbing much higher in coming nor will reportedly propose higher lessly exposes taxpayers to open- Cuomo pointed out that public-pension costs are “ex- years if the Paterson administration retirement ages, lower benefit levels ended financial risk and volatility. ploding” across New York state. had not adopted a funding gimmick and increased employee contribu- It’s no coincidence that the latest He certainly wasn’t exaggerating. New York City that will delay and “amortize” a pro- tions to retirement funds. He is also rise is occurring after a deep reces- alone has seen its annual bill rise from just over $1 billion jected $5 billion in pension contri- likely to address notorious abuses, sion,when New Yorkers can least af- a decade ago to a projected $8.4 billion in fiscal 2012. Pension butions by 2017-18. such as overtime “spiking” and dou- ford it.This is not a bug but a feature I After months of preoccupation ble-dipping. of the traditional defined-benefit costs for other localities are doubling, tripling or even quadru- with other fiscal matters, Mr. Cuo- But if Mr. Cuomo’s plan begins system, and it can’t be fixed by pling over the levels of a few years ago. mo is getting ready to present his and ends with changes to the bound- tweaking benefit levels—especially when public employee unions have a track record of persuading the state Legislature to boost benefits when- ever economic conditions improve. Real structural reform would move government workers to de- When a serious illness occurs, like a heart attack or stroke, the last thing anyone wants to think about is the fined-contribution plans, already the prevalent retirement savings ve- cost associated with recovery. Help your employees focus on what really matters — getting better — and help pay hicle in the private sector. With such a system, taxpayers Serious illnesses can be devastating. Paying for them shouldn’t be. would no longer bear all the finan- cial risks associated with providing Introducing Critical Care and Recovery. guaranteed pension benefits. The tax-funded share of retirement ben- costs major medical insurance doesn’t cover. And because it’s a voluntary purchase by your employees, it won’t cost efits would become both predictable and easily understandable, and the your business a penny. Find out more at afl ac.com/criticalcare real costs of proposed benefit in- creases would be transparent. Even if New York’s current pen- sion plans are closed to new en- trants, their legacy cost will be a gi- gantic headache for decades to come. But we should at least heed the lesson of what the late Sen. Daniel Patrick Moynihan called Political Economy 101: When you’re in a hole, stop digging.

E.J. McMahon is a senior fellow at the Manhattan Institute’s Empire Center for New York State Policy. CORO NY SEEKS NEXT CIVIC STARS THE CORO NEW YORK Leadership Center is accepting applications for the 23rd class of Leadership New York. This development program seeks midcareer professionals from various sectors with diverse backgrounds and perspectives. It provides the skills and knowledge individuals need to effect change in their organizations and across the city. Coro counts 2,000 alumni of the program, including commissioners, entrepreneurs and corporate executives. Leadership New York is a part- time program that meets September through May and requires attendance at an opening retreat, monthly weekday sessions, and several Saturday and evening workshops. Individual coverage underwritten and offered by American Family Life Assurance Company of Columbus. In New York, coverage underwritten and offered by American Family Life Assurance Company of New York. Some For more details, visit policies may be available as group policies. Group coverage underwritten and offered by Continental American Insurance Company. Policies may not be available in all states. Afl ac pays cash benefi ts direct to the insured, www.coronewyork.org or e-mail unless assigned. There may be indirect administrative or other costs. Afl ac’s Critical Care and Recovery is a specifi ed health event insurance policy. Recruitment Manager Erin Tarica NAD1157 at [email protected]. The application deadline is July 15.

12 | Crain’s New York Business | May 30, 2011 Project1:fp template.qxd 5/26/11 12:41 PM Page 1

MEET AND MINGLE with the Top Entrepreneurs featured in this issue

Launching a business in this uncertain economy is not for the faint hearted, and DATE yet many New York City entrepreneurs are taking the plunge. What does it take Monday, June 20, 2011 to pull off a successful launch now? PLACE Crain’s New York Business 16th annual Top Entrepreneur Awards will spotlight The Yale Club the contribution of the thousands of small businesses in the city and focus on 50 strategies to grow in the challenging New York market. New York, NY Reserve your seat today. TIME 8:00-8:30 am Networking Breakfast

8:30-9:30 am Program COST TO ATTEND $70 for individual tickets if pre-registered by June 13, 2011; $75 thereafter.

$700 for table(s) of ten if pre-registered by June 13, 2011; $750 thereafter. TO PURCHASE TICKETS Pre-register online by going to crainsnewyork.com and clicking on “Events”, or fax your business card and credit card information to “Top Entrepreneurs Breakfast” at 212.210.0499.

You must be pre-registered to attend this event. CRAIN’S Seating is limited. No refunds permitted. For more information, call the Events Hotline at 212.210.0739 2011 TOP PRESENTING SPONSOR ENTREPRENEURS SILVER SPONSOR 20110530-NEWS--0014-NAT-CCI-CN_-- 5/26/2011 8:12 PM Page 1

NEIGHBORHOOD JOURNAL Brewers hop on Bronx bandwagon Hoping to tap into the rising popularity,a small group of in- and more people are starting to em- necessarily in the best of vestors are hoping to achieve similar brace it.” contexts. appeal of city’s results with a borough still almost “People from around untouched by fame and fortune. Context counts the world know where the GETTING TO MARKET: The mainland borough They are planning to begin selling To put things in statistical per- Bronx is,” said Christo- Bronx Brewery recently rolled Bronx Pale Ale in September. spective, while more than 70 compa- pher Gallant, general out its first delivery truck. BY MARINE COLE Local boosters swear the timing nies have come out with products manager of The Bronx voltz kirk is right. with Brooklyn in their name in recent Brewery. with pride to such borough stars as early 25 years after a “The Bronx has come back from years, only a handful—including a A graduate of MIT’s Sloan the Yankees, aka the Bronx pair of entrepreneurs decades when everyone wanted to soda company and an apparel com- School of Management and a former Bombers, and the zoo, home of the started The Brooklyn run away from it,” observed Rubén pany—have been down that road beer-industry consultant, Mr. Gal- elusive Egyptian cobra. He doesn’t Brewery and capital- Díaz Jr., Bronx borough president. with the Bronx. The good news is lant joined the company in 2010, a mention the borough’s gritty past, ized on the borough’s “Now, the negativity is going away that people have heard of it—just not year after its founding. He points when it was known for its high crime N rates and crumbling neighborhoods. Mr. Gallant joined the compa- ny’s two founders: Pace University M.B.A. holder and Bronx native Stephen O’Sullivan, who now serves as an adviser; and Damian Brown, a Yale graduate and holder of an advanced degree in brewing, who is the head brewer. They hired a part-time creative director. To- gether they have raised half a million dollars for an operation that will capitalize on not just the Bronx name but also the borough’s location and standing as the city’s only main- land borough. “Logistically, the South Bronx is great for distribution,”said Mr.Gal- lant, noting that the company can readily reach the rest of the city via the Whitestone and Throgs Neck bridges as well as the River spans. From its recently leased building on Bruckner Boulevard in Mott Haven, the brewer-to-be also has easy access to suppliers to the north via Interstate 95. Once the 3,300-square-foot for- mer ink-cartridge warehouse is cleaned up,it will be used for offices, A powerful assortment warehousing and a small pilot facil- ity for the testing of new brews.The company already has two other of treasury solutions recipes finalized and two in the hop- per. And to get its elixirs to market, the company recently purchased a to sweeten Fran’s success. 2005 Isuzu beverage truck.The aim is to target beer-centric bars and ™ restaurants—like Daniel Boulud’s Opportunity at every step. DBGB in lower Manhattan—that have a large number of beers on tap. Made in Connecticut From its start in Fran Bigelow’s kitchen to its stature as a growing national business, Fran’s Chocolates has been the The catch is that, despite the la- bel, the beer won’t be made in the de nition of sweet success. And as Fran’s commercial bank, we’ve been there from the start, helping to keep that up-and-coming borough right away. Instead, Bronx Pale Ale will success  owing. That includes providing Fran’s with the right treasury management solutions, such as fraud prevention, hail from a microbrewer in Con- necticut. end-of-day sales ful llment and easy-to-track nancial reporting. All giving Fran’s the cash ef ciency it needs to continue “We want to do that for a few years, go back to raise more money creating the sweet moments America loves. and then start producing in the Bronx,” said Mr. Gallant. Learn more about our comprehensive treasury management solutions. In the meantime, the brewers and others are hoping that the Call 1.212.796.6947or visit bankofamerica.com/businesssolutions2 Bronx’s popularity will reach heady new highs. “Other folks are starting to use the Bronx as part of their market- ing,” said Mr. Díaz. “Hopefully, people are going to start naming their kids Bronx.” In fact, Ashlee Simpson, sister of Jessica, gave her newborn boy that very gift in 2008. “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 af liates of “The Bronx is on an upward 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 af liates of Bank of America Corporation swing,”said Garrett Lucien,a direc- (“Investment Banking Af liates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., all of which are registered broker dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Investment products offered by Investment Banking Af liates: Are Not FDIC Insured  May Lose Value  Are Not Bank Guaranteed. ©2011 Bank of America Corporation. ARH2Q421 tor at the South Bronx Overall Eco- nomic Development Corp. “It’s go- ing in the right direction.” Ⅲ

14 | Crain’s New York Business | May 30, 2011 Project1:fp template.qxd 5/26/11 12:40 PM Page 1

MEET CRAIN’S DATE MONDAY, JUNE 27, 2011

PLACE MOST 2011 583 PARK AVENUE TIME POWERFUL 12:00-2:00 PM PURCHASE TICKETS INDIVIDUALS: $299 TABLES OF TEN: $3,000 WOMEN For tickets, go to www.crainsnewyork.com IN NEW YORK CITY /events-women

Crain’s New York Business recognizes what it means to command incredible power in this city. On June 27th, Crain’s will unveil The 50 Most Powerful Women in New York City —an authoritative list of the most important female leaders running businesses and organizations that drive New York’s economy. Meet these elite women and join Crain’s in commemorating their accomplishments at an exclusive luncheon.

For more information about sponsorship and advertising opportunities, contact Trish Henry at 212.210.0711 or [email protected] 20110530-NEWS--0016-NAT-CCI-CN_-- 5/26/2011 8:12 PM Page 1

REAL ESTATE DEALS DOUBLING UP Manhattan office building sales Boston firm buys downtown landmark closed in the first quarter. 2010 2011 transaction said. clude 1211 Sixth Ave., didn’t have and commands rents of about $44 a Beacon takes 70% Published reports put the valua- an immediate comment. square foot. to 80% of former tion of the landmarked 29-story Real estate sources said Beacon is —theresa agovino building near the World Trade Cen- considering selling the Sixth Av- 38NUMBER AT&T headquarters ter site at about $285 million, which enue tower. would mean Beacon is ponying up The deal was brokered by Adam Private equity firm $513.7M $1.2B eacon Capital Partners as much as $228 million. Spies of Eastdil Secured, who de- doubles space VALUE signed a contract to pur- A spokesman for L&L, which is clined to comment.A spokesman for chase between 70% and run by David Levinson and Rob GE Pension Trust didn’t return a call. A private equity firm is doubling Source: CB Richard Ellis 80% of 195 Lapidus, declined to comment. The property was built to be the its space in the tony Plaza district. from L&L Holding and A spokesman for Beacon, a Bos- headquarters of American Tele- Siguler Guff & Co.has signed an Bits capital partner, GE Pension ton-based real estate investment phone and Telegraph. According to eight-year lease for 20,000 square was $49 a square foot. Trust, sources familiar with the company whose local holdings in- CoStar, the property is 88% leased feet at 825 Third Ave. The asking rent The lease started May 1, but the firm is currently doing work on the eighth-floor space. “Their business is expanding,” said Philip Sprayregen of Sprayre- gen Real Estate Advisors, who rep- resented the tenant in the deal. Siguler has several private equity funds that focus on the BRIC coun- tries of Brazil, Russia, India and China. Mr. Sprayregen first worked with Siguler nearly a decade ago, when the firm subleased from Mor- gan Stanley approximately 10,000 square feet in the same building. About five years ago, he helped A LARGER NETWORK Siguler lease 20,000 square feet on the 10th floor of 825 Third Ave., and it will continue to occupy that office. MAKES A Dave Hollander and Gregory Tosco of CB Richard Ellis Inc.rep- resented landlord Advance Publi- cations Inc. in the negotiations. SMALLER WORLD. Advance is the owner of Condé Nast. Size alone isn’t the only measure of an airline (or even the best one), but when it makes the world easier —marine cole to access, we believe it’s a sign of progress. Delta is the number one U.S. airline to Europe, Asia, and Africa. We have nine hubs and seventeen international gateways – the most of any airline. And we fl y to French jeweler nabs over 350 destinations across six continents, including new nonstop service from JFK to Reykjavik. Mad Ave. bargain DELTA.COM A French jewelry designer has picked a prime address for her first U.S. store. Bet- ter yet, she got a bargain. Marie- Hélène de Tail- lac has signed a lease for nearly 1,000 square feet at 824 Madi- son Ave. She will occupy the 310- square-foot re- tail space on the ground floor 824 Madison Ave. and 600 square feet on the second floor, which will be used for offices and showrooms. The asking rent for the ground floor, which has its entrance on East 69th Street,was $450 a square foot in an area where rents peaked at $1,200 a square foot in 2007.The asking rent for the second floor was $70 a square foot. Ms. de Taillac launched her first collection of jewelry 10 years ago. “She has stores in Paris and Tokyo and is sold through Barneys outlets in the U.S.,” said Philip Sprayregen of Sprayregen Real Es- tate Advisors, who represented both

New York to Reykjavik starting June 1 the tenant and landlord Bicent Properties in the deal. The designer is currently doing work on the space and plans to open in September. —marine cole

16 | Crain’s New York Business | May 30, 2011 20110530-NEWS--0017-NAT-CCI-CN_-- 5/26/2011 5:49 PM Page 1

Michael THIS YEAR’S CROP OF TOP ENTREPRENEURS come from industries as diverse as Kirban you can imagine, from winemaking to asbestos removal. But these Vita Coco standouts have something in common: They spotted opportunities that Page 20 others overlooked and then ran with them. Consider Ramit and Rohit Arora. Hearing how tough it was for other immigrants to get small business loans, they ➚ ON THE WEB @ launched online matchmaker Biz2Credit. WWW.CRAINSNEWYORK.COM The brothers persistently built their EXCLUSIVE business, despite the global credit crunch. Video interviews of our award Then there’s Anthony Casalena of winners can be found online. Squarespace. When he found it awkward Go to www.crainsnewyork.com/ to add features to his website using existing topentrepreneurs software, the computer science whiz turned around and created his own—while still in Anthony college. He raised one of the city’s largest Casalena rounds of venture capital in 2010. Squarespace When City Winery’s target customer Page 20 base collapsed along with Lehman Brothers, founder Michael Dorf re-evaluated his model and changed course. Revenues are expected to rise 25% this year. Each of these entrepreneurs is committed to New York, with all of the excitement and challenges it offers. Our winners provide plenty of inspiration for other opportunity-spotters looking to make their mark.

Ramit and Rohit Arora Lee Zalben Biz2Credit Peanut Butter Page 21 & Co. Page 18

Karen Grando International Asbestos Removal Inc. Page 18

Michael Dorf City Winery Page 21 photos by buckphotos ennis

May 30, 2011 | Crain’s New York Business | 17 20110530-NEWS--0018-NAT-CCI-CN_-- 5/26/2011 5:50 PM Page 1

2011 TOP E NTREPRENEURS Slick step: Eatery owner sticks with his dream

A friend told Mr. Zalben PB scores with diners and at retail that Elvis was unusually fond of peanut butter. So LEE ZALBEN is a born peanut butter fiend. During his boyhood, the entrepreneur whipped his mother grew so weary of finger grooves in the peanut butter up The Elvis, a favorite of The King’s featuring pea- jars that she took to giving him his own jar, labeled “Lee.” At nut butter, bacon, bananas Vassar College, he challenged roommates to late-night contests and honey. As the sand- to see who could invent the most outrageous PB&J sandwich. wich shop got started,Mr. A typical concoction: peanut butter, carob chips, dried apricots Zalben often sold hun- dreds of Elvises a day. and orange marmalade. ing at a frozen yogurt shop as Other exotic sand- “I always won,” said Mr. a teenager. He liquidated his wiches followed.They in- BREADWINNER: When Zalben, 38, who began to savings, took out loans (start- clude the Pregnant Lady Lee Zalben started making a sandwich that dream of opening a restaurant up costs:$150,000),and at age (peanut butter and pick- was an Elvis favorite, it to showcase his unique talent. 24 opened sandwich shop Pea- les) and The Heat Is On (a became his top seller. However, after graduating, nut Butter & Co. spicy,Thai-accented sand- he moved to New York He faced considerable wich). Mr. Zalben then City and landed a maga- obstacles. Sure, he loved added drinks, such as peanut butter spoke with various executives before even a Peanut Butter & Co. cook- zine publishing job: It just his product. But now, he smoothies. But The Elvis remains choosing a larger company (whose book,with an intro by Jerry Seinfeld. seemed more practical than 15,000 had to contend with the best-seller. name he won’t divulge) that meets Mr. Zalben projects that his fief- indulging in his passion. Stores carrying staffing, marketing and Peanut Butter & Co. is now a his exacting specs. dom will generate a profitable $12 He rose quickly through PEANUT BUTTER working with suppliers. Greenwich Village mainstay, cater- Mr. Zalben notes that his peanut million in revenue this year,up 20%. the ranks on the business & CO. products To learn the ropes, he ing to local residents,NYU students butter is all-natural, sweetened with The revenue split is roughly 85% for side at outfits such as Ha- turned to others for input. and tourists. evaporated cane juice and preserved products sold at retail versus 15% chette and News Corp.,but “Lee is a great listen- In 2003, Mr. Zalben decided to using palm fruit oil. A jar costs $6, from mail-order sales and the shop, just as rapidly began to lose interest. er,” said J. Robert Hall, a senior ad- expand, offering his custom, home- about a third more than the typical where he employs 15 people. One day in 1998, while walking viser at Centerview Partners, a Rye, made peanut butters for sale at gro- mass-market brand. “I’ve found success by focusing through Greenwich Village,he spot- N.Y., private equity firm, and an in- cery stores. High-end Dean & The company’s products are now on one thing,”Mr.Zalben said,“and ted a boarded-up business. Then it formal adviser to Mr. Zalben.“It al- DeLuca was the first taker. available at 15,000 stores around the doing it really well.” hit him:The location could become lows him to learn quickly on the fly, As the retail business grew, Mr. U.S. and Canada, including Whole Building on the ties between his the site of his deferred dream. and it fuels his enormous creativity.” Zalben faced a new challenge: It be- Foods, Walmart and Target loca- products and healthy living,he spon- Never mind that Mr. Zalben’s Listening was the key to a break- came impossible to satisfy demand tions. Mr. Zalben regularly goes on sors a women’s pro bicycling team. only restaurant experience was work- through success at the new venture. via his small Brooklyn factory. He QVC to hawk his creations.There’s —justin martin

year, with fees ranging from $5,000 for insulating the pipes and duct- Diversity insulates asbestos remover work at a renovated office to $5 mil- lion for removing asbestos at a water pollution-control plant. True to form, Ms. Grando Certifications help win contracts PIPE DREAMS: continues seeking opportuni- Karen Grando has built ties. Last year, she became a KAREN GRANDO’S FORAY into small business ownership was as her firm by getting certified insulation energy ap- unforeseen as the 1984 skydiving accident that put her husband, certified as a woman- praiser, able to help customers owned business and as promote efficiency and achieve John, in a full-leg cast and turned her into his chauffeur. an insulation energy appraiser. cost savings. She then partici- While waiting in his office to drive him around, Ms. Grando pated in an entrepreneurship would often hear her spouse—who owned a duct and pipe program, run by the city’s De- insulation firm in Woodside, Queens—turn down customers partment of Small Business Services, that prompted her to requesting asbestos removal. Those building she and her husband create a marketing plan for her frequent calls persuaded her to go owned, also home to his insulation green revenue stream. into the asbestos-removal field business. The couple later pur- Tanya Pope, executive di- herself. chased two buildings adjoin- rector of SBS’s education and “I thought,‘I can do this,’” ing that property, creating corporate programs, hails Ms. recalled Ms. Grando, now an 8,000-square-foot site Grando for “making the effort 53, who had retired from that the firms still share. to get the information she Citibank’s credit card divi- From the beginning, needs to develop and grow her sion in order to stay home IAR grew—but not fast company,” and then freely with her children. $5M enough to suit Ms. Gran- sharing her knowledge. In She wasn’t fazed by her Top fee paid last do. So in the early 1990s, class, Ms. Grando “gave lack of hands-on experi- year for a project she began pursuing certifi- pointers about how to navi- ence in the construction cations as a woman busi- gate the city’s bidding and trades. She believed that handled by IAR ness enterprise, or WBE. contract process.” her accounting degree “A ton of doors Ms.Grando has not always from Hofstra University, opened,” she said. WBE certification to bid for pipe and nomic downturn but also enabled had an easy ride. Her husband died her employment history and her The firm won contracts from a duct insulation projects in the pub- the profitable firm’s revenues to two years ago after a 10-year battle willingness to learn the ropes would slew of city and state agencies that lic works arena,her spouse’s domain. jump more than 10% last year to top with lung disease. She now serves as stand her in good stead. still use her services, including the “I wasn’t competing with my $10 million, versus $9 million in CEO of John Grando Inc. Ms. Grando enrolled in a train- Metropolitan Transportation Au- husband, since a percentage of a 2009.In the same period,IAR’s em- Mindful of her husband’s suffer- ing program to earn the requisite thority, the School Construction public contract has to be given to ployee roster grew 27%, to 70 work- ing, she and her children contribute city and state licenses, and formed Authority and the Dormitory Au- women contractors,” she said. ers from 55. (Two of Ms. Grando’s to and raise funds for an annual Long her company in 1987. International thority of the State of New York. Having a diversified workload four children work in the business.) Island walkathon held by the Asbestos Removal Inc. was housed Still, Ms. Grando thirsted for has more than paid off. It has not The company, a union contrac- Leukemia & Lymphoma Society. in a 1,000-square-foot space at a more work.In 1995,she deployed her only insulated IAR from the eco- tor, handled about 80 projects last —cara s. trager

18 | Crain’s New York Business | May 30, 2011 Project6:fp template.qxd 5/17/11 2:49 PM Page 1

From trust do mighty relationships grow Deloitte Growth Enterprise Services is focused on companies, from start-ups to those with up to $1 billion in annual revenue. We customize offerings to meet their needs. We deliver tremendous value with every contact. And above all, we foster trust and openness. The results? Strong relationships, strong companies, and strong growth.

Download the Full Report: Mid-Market Perspectives: 2011 Report on America’s Economic Engine at www.deloitte.com/us/dges/midmarketperspectives

To learn more about DGES contact Greg Durant at +1 212 436 2000 or e-mail us at [email protected]

Official Professional Services Sponsor

Professional Services means audit, tax, consulting and financial advisory services.

As used in this document, “Deloitte” means Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, and Deloitte Tax LLP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2011 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited 36USC220506 20110530-NEWS--0020,0021-NAT-CCI-CN_-- 5/26/2011 5:52 PM Page 1

2011 TOP E NTREPRENEURS Coconut water sets off healthy-beverage wave

In their firm’s early days, Barroom chat brings drink to U.S. Messrs. Kirban and Liran came up with a cost-effec- IT’S A DAUNTING TASK to introduce yet another nonalcoholic drink tive way to attract talent: into the saturated U.S. beverage market. But Michael Kirban, They hired independent contractors and part-timers, 36, and Ira Liran, 33, rose to the occasion with Vita Coco. paying some in equity.They It began in 2003, when the men, childhood pals, started a later hired many full-time. conversation with two Brazilian women at a bar in Manhattan. In 2006, the partners se- Their new acquaintances said that what they missed most about cured an investment (they won’t reveal the amount) their country was coconut water. Kirban became CEO,while Mr.Li- from Verlinvest,a private eq- UNDILUTED ENTHUSIASM: Mr. Liran began a romance with ran oversaw production develop- uity fund run by the founding Michael Kirban skated from one of the women—whom he later ment.They started manufacturing in families of Anheuser-Busch store to store to win clients; he married—and Brazil, using a new process that al- InBev in Belgium. It bought and partner Ira Liran won moved to lowed them to pasteurize the liquid 20% of the company. funding and PR by approaching Brazil with her. without boiling it, thereby preserv- After hearing that Ma- Madonna’s manager. He and Mr. ing its nutrients. donna is a Vita Coco fan,the Kirban, who Their first sales duo finagled an introduc- ran a software were to independ- tion to her manager, Guy Oseary. ing everything you need to do to en- brings in $40 million in sales;the fig- firm that helped 60% ent stores and delis Both invested in the firm, as did ter a market with a new category.” ure doubled between 2009 and 2010. owners manage Share of market in the city; Mr. Kir- Demi Moore and Matthew McCon- Perhaps the savviest step was its Mr. Kirban says growth is now lim- corporate housing, for coconut water ban traveled door- aughey; in all, celebrities have con- distribution deal with Dr Pepper ited only by the availability of raw started looking for business held by VITA COCO to-door on in-line tributed about $10 million.The per- Snapple Group,announced last June. materials.To address this challenge, opportunities there. They skates to reach sites formers have plugged the brand at Such arrangements are “the gold the company recently added pro- decided they could posi- as quickly as possi- concerts,fashion shows and the like. standard of nonalcoholic-beverage duction capacity in Southeast Asia. tion coconut water as a new ble. Their big break Gary Hemphill,a senior vice pres- distribution,” said Mr. Hemphill. “We could have grown 300% last type of healthful drink back home. was landing the Whole Foods stores ident of market research firm Bever- That’s important, because both year if we had more coconuts,” Mr. “We felt coconut water could be in New York. Two years later, the age Marketing Corp., notes that the Coca-Cola and PepsiCo have be- Kirban said. as big a market as orange juice in the store started selling the product na- partners have made a series of smart gun distributing coconut water. Vita Coco has made over $2 mil- United States,” said Mr. Kirban. tionally.Vita Coco is now stocked at branding and distribution moves. Even so, 100-employee All Market lion worth of donations to charities In 2004, using $100,000 in sav- many Walmart and Costco loca- “Coconut water is one of the hot- Inc./Vita Coco, now based in Man- ranging from the American Heart ings, they set up All Market Inc. in tions. It’s distributed largely on the ter niche ideas of the last several hattan,has about 60% of the market. Association to the Special Olympics. Brooklyn to sell the beverage. Mr. East and West Coasts. years,”he said.“This company is do- The business,which is profitable, —anne field

Squarespace got a big boost in July 2010, when it earned one of the Dorm biz gets angle right on blogs year’s largest rounds of venture cap- ital in New York: $38.5 million in funding, led by Accel Partners and Index Ventures. Mr. Casale- Software assists users of all stripes na, the majority shareholder, formed a five-person board FRUSTRATION SPARKED Anthony Casalena’s dorm-room startup. that includes Dominique He launched Squarespace Inc. in 2004, while he was a senior Vidal, an Index Ventures partner; Andrew Braccia, an at the University of Maryland, after having an unexpectedly Accel partner; and Jonathan difficult time designing his website. He’d found that integrating Klein,CEO of Getty Images. all the disparate components—software for displaying photos, Mr. Casalena is using the blogging, analytics and the like—was a cumbersome process. money to build his next ver- sion, which he promises will “It was just so annoying,” said “The creative spirit of the city fits offer a “drastic improvement Mr. Casalena, now 29. very well with Squarespace,” he ex- in the experience of using the So, as any self-respecting com- plains today. “We see design as software.” He expects to puter science whiz might something fundamental to our launch it this summer. Ulti- do,he created his own way business, so New York is a very mately, he said, “we hope to to pull in all the pieces of natural home for us.” grow the number of publish- the puzzle. When friends After taking an extra year ers using our site to millions.” started asking to use the to graduate and work on This isn’t Mr. Casalena’s program for their websites, the business, he first startup experience. As a Mr.Casalena realized he had moved home to north- INSIGHTFUL SITE DESIGN: high school senior,he worked stumbled on a business op- ern Maryland and spent Anthony Casalena’s on design and implementa- portunity: a one-stop pub- six months saving money customers include both tion for HyperOffice.com, lishing platform.It enables before finally settling in individual bloggers and big an online provider of com- clients to create high-qual- $38.5M Manhattan five years ago. businesses such as Kiehl’s. munication and collabora- ity websites and integrate July 2010 Mr. Casalena experi- tion software. other services—which now VC funding for mented with offering a “It really helped get the include Flickr and Twit- SQUARESPACE free service, like archrival Clients include both individual blog- members’ major accomplishments, business to the next level,” he said. ter—easily and seamlessly. WordPress, along with a gers and companies such as fashion says Jeffrey Carr, executive director With that vision and moxie, it’s a After spending about paid option. But he de- firm Marc Ecko Enterprises and of NYU’s Berkley Center for Entre- wonder he waited until his senior eight months refining the software, cided early on to nix that model and cosmetics retailer Kiehl’s. Square- preneurial Studies. year in college to launch a business. Mr.Casalena borrowed $30,000 from go after a more serious user. space,which has been profitable since “They’ve found a way to combine Squarespace has reduced its car- his father,a former sales exec at Cis- The 50-employee company offers 2005,posted 2010 sales of $10.2 mil- ease of use and one-stop shopping bon footprint by buying carbon off- co and Hewlett-Packard,to buy serv- three levels of service, charging $12 lion—up 95% from the year before. for everyday users and still provide sets and purchasing energy that’s ers. He housed them in New York, to $36 a month,serving “tens of thou- The ability to appeal to both ends value to professional developers,” supplied entirely by wind turbines. knowing that he’d set up shop here. sands of users,” Mr. Casalena says. of the spectrum is one of the team Mr. Carr said. “That’s rare.” —anne field

20 | Crain’s New York Business | May 30, 2011 20110530-NEWS--0020,0021-NAT-CCI-CN_-- 5/26/2011 5:52 PM Page 2

2011 TOP E NTREPRENEURS

ed selling Equifax’s credit reports for $49 and Dun & Bradstreet’s for Lending immigrants’ firms an ear $119, Biz2Credit has been getting about 10% of the proceeds. At the outset, the brothers self- financed Biz2Credit, each investing Simplifying credit access fills a void $200,000 from their savings. They also brought a wealth of financial ex- WHILE WORKING for Deloitte Consulting, Rohit Arora perience. Rohit, 35, who earned an discovered that small business loans made up banks’ most M.B.A.from Columbia,has worked profitable portfolios, and that those serving ethnic-owned for Goldman Sachs and a Singapore- based private equity firm.Ramit,31, firms had the fewest defaults. became a chartered accountant in Armed with these pieces of information—and a longtime India; his résumé includes stints at desire to start a company with his brother, Ramit—he canvassed the automotive division at Bosch Inc.and at Affiliated Computer Ser- his Indian compatriots in the small innovative fashion that I haven’t vices, now a Xerox company. business and banking communities seen in the market before,”said Dan The partners’ tenaciousness got in Jackson Heights, Queens, about Csont, chief marketing officer of Biz2Credit off the ground just as the their financial needs. Equifax Commercial Information economy was tanking.They assidu- What he got was an earful about Solutions. ously hawked their business online many immigrants’ lack of Mr. Csont’s company and in person at banking confer- understanding of the U.S. recently partnered with ences and other industry gatherings, banking and credit sys- Biz2Credit to sell credit including a gathering of Pakistani CREDITABLE PLAN: tems, and their dim view reports through the lat- Rohit and Ramit Arora and Arab gas station owners. of loan applications as ter’s website. (from left) want to To create a network of lenders, cumbersome, time-con- “My whole vision was make life easier for they initially focused on small banks suming and futile. to make life easier for those puzzled by the in the New York area and in the Mid- In response, the broth- small businesses, helping U.S. banking system. west,cold-calling top lending officers ers developed Biz2Credit, $400M them become more cred- before the start of the business day an immigrant-friendly on- Loan volume itworthy,access credit and to increase the likelihood that bank- line operation that eases facilitated by get up to speed with their cluding medical practices, gas sta- skyrocketed 100% to a profitable ers would answer their own phones. access to commercial loans, BIZ2CREDIT business,” said Rohit. He tions,restaurants and franchises,typ- $1.8 million, from $900,000. Today, their network includes insti- credit reports and other serves as the firm’s CEO, ically secure $200,000 to $4.5 million About 80% of Biz2Credit’s rev- tutions such as NewBank,located in financial products. The while Ramit is president. in financing. About 55% of custom- enues come from banks, which fork the Asian community in Flushing, 4-year-old firm matches small busi- Rohit’s vision has evolved into a ers are immigrant-owned businesses. over 1% to 1.5% of a loan’s value,de- Queens, and some of the nation’s nesses with three to 10 potential 37-employee firm,headquartered in “We are demystifying and stream- pending on a borrower’s business largest banks, like Wells Fargo. lenders, and enables clients to up- Manhattan, with a 5,000-square- lining the credit process,”said Ramit. and collateral.Biz2Credit also reaps On the philanthropic front, Ro- load,store and update their financial foot technology,support and securi- Last year,as the credit crunch be- fees from monthly subscriptions, hit leads workshops for nonprofits documents online. ty center in India, a roster of 7,000 gan to ease with the passage of the which run as high as $100 for ac- such as Seedco Financial and Ac- “Biz2Credit has created a plat- clients and more than 300 lenders. Small Business Jobs Act, Biz2Credit companying clients to bank meet- ción New York,which teach skills to form that connects small business Biz2Credit has facilitated a total of facilitated about 2,500 loans,a 150% ings and providing financial advice. foster entrepreneurship. with lending institutions in a very $400 million in loans. Its clients, in- jump over its 2009 figure. Revenues Since February,when the firm start- —cara s. trager Surprising urban winery cultivates classy crowd

an operation. In 2008, he Impresario caters to mature tastes leased a 21,000-square-foot space at Hudson Square— NEW YORK CITY may be the center of finance, fashion and but his timing was terrible. media—but winemaking? Forget about it. One of the first events on Michael Dorf ’s City Winery is trying to fill that void by his new business’s calendar was a holiday party for Lehman arranging for fresh-off-the-vine grapes to be express-shipped Brothers.By Christmas 2008, to Manhattan from the Finger Lakes, California, Oregon, the company didn’t even exist even Chile. Customers who purchase certain memberships can anymore, a victim of the mas- TOAST OF THE TOWN: sive economic meltdown. Michael Dorf, founder make an entire barrel of wine under with investors over a variety of issues, “My business plan was to of the Knitting the tutelage of a master vintner. such as the proper strategy for run- sell barrels to bankers,” Mr. Factory, now brings City Winery is ning the sideline record Dorf said,“but I was forced to high-end wine and also an event label. (The investors de- re-evaluate everything.” entertainment space: It both clined to comment.) City Winery still sells its to the city. hosts its own $5-$15K Mr. Dorf spent a few memberships to produce bar- concerts and Fee for making a years licking his wounds rels of wine,which range from tastings, and barrel of wine at and casting about for his $5,000 to $15,000, depending on Not surprisingly, the 300-seat con- Winery—projected to post $10 mil- rents out the CITY WINERY next opportunity. By the the type of wine and the process in- cert venue features acts for a mature, lion in revenues in 2011, a 25% venue for pri- time he hit his 40s, he volved in making it. But the ever- wine-quaffing crowd, such as Allen gain—is a scalable business. He’s vate parties, wed- was married with kids resilient Mr. Dorf has also placed Toussaint and Rickie Lee Jones. opening a location in Chicago, and ding receptions and the like. and he’d become a wine aficionado. greater emphasis on holding con- “It’s the Knitting Factory for he’s looking at Miami, London and Mr. Dorf, 49, is a veteran impre- “I wanted to create something certs and selling wine by the glass. grown-ups,” Mr. Dorf explained. other major cities where there are sario. In 1987, he founded the Knit- based on where my head was at,” he His enterprise has turned out a “Michael is not afraid to get oenophiles but no nearby vineyards. ting Factory,a legendary downtown said, “and for a crowd that was a lit- bit like one of those bars that brews knocked down,” said David Pak- The entrepreneur gives heavily venue, now defunct, where hipsters tle older and more mature.” beer on premises, storing it in huge man, a partner at Manhattan ven- to charity. He donates about 8% of swilled warm beer from plastic cups As recently as 2002, fortified vats. In this case, customers can get ture capital firm Venrock, who has his product to auctions that raise and caught acts like Sonic Youth and kosher wine was made on the Low- wine fresh from the barrel. Offer- teamed up with Mr. Dorf for sever- money to help New York City pub- Yo La Tengo at the outset of their er East Side, but Manhattan has no ings cost roughly $10 a glass and al ventures over the years. “He sim- lic schools, battle diseases such as musical careers. But he resigned un- tradition of producing high-toned boast clever names, such as SoHo ply finds a fresh angle.” leukemia and assist other causes. der pressure in 2003 after battling vintages.Mr.Dorf planned just such Vignon Blanc and NY City Cab. Mr. Dorf is certain that City —justin martin

May 30, 2011 | Crain’s New York Business | 21 nb22p22-23cl.qxp 5/27/11 1:08 PM Page 22

BUSINESS OPPORTUNITY PUBLIC & LEGAL NOTICES

Notice of Qualification of Pegasus Notice of Qualification of Univision Notice of Qualification of SunRun Notice of Qualification of PYRANDER Investors V (GP), L.L.C. Authority Deportes, LLC. Authority filed with Solar Tenant IV, LLC. Authority filed CAPITAL MANAGEMENT, LLC. filed with NY Dept. of State on 5/6/11. NY Dept. of State on 4/11/11. Office with NY Dept. of State on 4/29/11. Authority filed with Secy. of State of Office location: NY County. Princ. location: NY County. Princ. bus. Office location: NY County. Princ. NY (SSNY) on 04/07/11. Office loca- bus. addr.: 99 River Rd., Cos Cob, addr.: 605 3rd Ave., 12th Fl., NY, NY bus. addr.: 45 Fremont St., 32nd Fl., tion: NY County. LLC formed in CT 06807. LLC formed in DE on 10158. LLC formed in DE on 3/23/11. San Francisco, CA 94105. LLC Delaware (DE) on 02/12/09. Princ. 4/6/11. NY Sec. of State designated NY Sec. of State designated agent of formed in CA on 2/17/11. NY Sec. of office of LLC: 500 Park Ave., 4th Fl., agent of LLC upon whom process LLC upon whom process against it State designated agent of LLC upon NY, NY 10022. SSNY designated as against it may be served and shall may be served and shall mail process whom process against it may be agent of LLC upon whom process mail process to: c/o CT Corporation to: c/o CT Corporation System, 111 served and shall mail process to: c/o against it may be served. SSNY shall System, 111 8th Ave., NY, NY 10011, 8th Ave., NY, NY 10011, regd. agent CT Corporation System, 111 8th mail process to the LLC at the princ. regd. agent upon whom process may upon whom process may be served. Ave., NY, NY 10011, regd. agent office of the LLC. DE addr. of LLC: be served. DE addr. of LLC: 1209 DE addr. of LLC: 1209 Orange St., upon whom process may be served. 615 S. DuPont Hwy., Dover, DE Orange St., Wilmington, DE 19801. Wilmington, DE 19801. Cert. of CA addr. of LLC: 818 W. 7th St., Los 19901. Cert. of Form. filed with DE Cert. of Form. filed with DE Sec. of Form. filed with DE Sec. of State, Angeles, CA 90017. Cert. of Form. Secy. of State, Div. of Corps., 401 State, 401 Federal St., Dover, DE 401 Federal St., Dover, DE 19901. filed with CA Sec. of State, 1500 Federal St., Ste. 4, Dover, DE 19901. 19901. Purpose: all lawful purposes. Purpose: any lawful activity. 11th St., Sacramento, CA 95814. Purpose: Investment management, Notice of Formation of GREENACRES Notice of Formation of MOVEMENT Purpose: any lawful activity. advisory or trading activities. PRESERVATION, L.P. Cert. of LP filed MATTERS REHABILITATION, OT, PT, Notice of Formation of METHUSELAH NOTICE OF FORMATION of EFFIE’S with Secy. of State of NY (SSNY) on PLLC. Arts. of Org. filed with Secy. LIVES LONG LLC. Arts. of Org. filed PAPER, LLC. Arts. of Org. filed with 05/04/11. Office location: NY County. of State of NY (SSNY) on 04/28/11. with Secy. of State of NY (SSNY) on Secy. of State of NY (SSNY) on Princ. office of LP: 60 Columbus Office location: NY County. Princ. 04/18/11. Office location: NY County. 03/21/11. Office location: NY County. CUSTOM JEWELRY Circle, NY, NY 10023. Latest date on office of PLLC: 264 Canal St., Ste. E, Princ. office of LLC: 888 Seventh SSNY designated as agent upon which the LP may dissolve is NY, NY 10013. SSNY designated as Ave., 35th Fl., NY, NY 10106. SSNY whom process against the LLC may Osnat Gad offers a completely 12/31/2111. SSNY designated as agent of PLLC upon whom process designated as agent of LLC upon be served. SSNY shall mail process personalized experience in buying agent of LP upon whom process against it may be served. SSNY shall whom process against it may be to: Effie’s Paper, LLC, 27 Leonard St, fine jewelry. From selecting against it may be served. SSNY shall mail process to the PLLC at the served. SSNY shall mail process to 5th Floor, NY, NY 10013. Purpose: To an engagement ring, building a mail process to c/o Corporation addr. of its princ. office. Purpose: c/o Spielman, Koenigsberg & Parker engage in any lawful act or activity. Profession of occupational therapy jewelry wardrobe, crafting a Service Co., 80 State St., Albany, NY LLP at the princ. office of the LLC. NOTICE OF FORMATION OF THIRD and physical therapy. one-of-a-kind piece to reworking 12207. Name and addr. of each Purpose: Any lawful activity. CROWN LLC. filed with the a cherished heirloom. general partner are available from Notice of Formation of Tolland Realty Notice of Qualification of InspectMyRide Secretary of State of NY (SSNY) on www.osnatgad.com SSNY. Purpose: Any lawful activity. Company Limited Partnership filed LLC. Authority filed with NY Dept. of 3/14/11. Office loc: NEW YORK Cty. Notice of Formation of 43 NORTH with the NY Dept. of State on State on 4/28/11. Office location: NY SSNY designated as agent upon BRISTOL, LLC. Arts. of Org. filed 4/1/2011. Office Location: NY County. LLC formed in DE on whom process may be served. Mail a EVENT with Secy. of State of NY (SSNY) on County. NY Sec of State (“SSNY”) 7/28/10. NY Sec. of State designated copy of any process to: 18 Saint 04/26/11. Office location: NY County. designated as agent of LP upon agent of LLC upon whom process Nicholas Pl, 4C, NY, NY 10031. ACG New York Intellectual Property: Princ. office of LLC: 801 Second whom process against it may be against it may be served and shall Purpose: any lawful acts. served and SSNY shall mail process mail process to: c/o CT Corporation Optimizing the Hidden and Ave., 19th Fl., NY, NY 10017. SSNY Notice of Formation of Moskit Investor, to: c/o Stephen H. Penn, 114 W. System, 111 8th Ave., NY, NY 10011, Unrealized Value. When: Thursday, designated as agent of LLC upon LLC. Arts. of Org. filed with NY Dept. 47th St., 19th Fl., NY, NY 10036. regd. agent upon whom process may June 2, 2011. 7:30 a.m. - 9:30 a.m. whom process against it may be of State on 4/20/11. Office location: Name/Addr. of genl.ptr. is available be served. DE addr. of LLC: 1209 Where: Yale Club, 50 Vanderbilt Avenue, served. SSNY shall mail process to NY County. Sec. of State designated from SSNY. Latest date LP to Orange St., Wilmington, DE 19801. New York, NY 10017. ACG New York c/o Kane Kessler, P.C., Attn: Robert agent of LLC upon whom process dissolve is 12/29/2029. Purpose: Cert. of Form. filed with DE Sec. of Members: $50.00. ACG Members from L. Lawrence, Esq., 1350 Ave. of the against it may be served and shall acquire and dispose of investment State, 401 Federal St., Dover, DE other Chapters (You MUST choose your Americas, 26th Fl., NY, NY 10019. mail process to: Ballon Stoll Bader & property situate in Tolland, MA. 19901. Purpose: any lawful activity. chapter in the drop down menu): Purpose: Any lawful activity. Nadler, P.C., 729 7th Ave., 17th Fl., $75.00 Non Members: $100.00. Notice of Qual. of Half Moon GP, LLC, NOTICE OF FORMATION of limited Notice of Formation of RAA MEDIA, NY, NY 10019, principal business Register at www.acgnyc.org Auth. filed Sec’y of State (SSNY) liability company (LLC). NAME: SARSEN LLC. Arts. of Org. filed with Secy. of addr. Purpose: real estate holding. 3/4/11. Office loc.: NY County. LLC REALTY, LLC. Articles of Organization State of NY (SSNY) on 05/02/11. NOTICE OF FORMATION OF Zandra org. in DE 3/1/11. SSNY desig. as filed with Secretary of State of New Office location: NY County. Princ. Management, LLC. Articles of Org. agent of LLC upon whom process York (SSNY) on April 7, 2011. Office office of LLC: 88 Pine St., NY, NY filed with Secy. of State of NY (SSNY) against it may be served. SSNY Location: New York County. SSNY 10005. SSNY designated as agent EXECUTIVE RECRUITER on 3/14/11. Office loc.: New York Co. shall mail copy of proc. to Att: Eric designated as agent of LLC upon whom of LLC upon whom process against SSNY designated as agent of LLC DeLamarter, 168 First Ave., NY, NY process against it may be served. it may be served. SSNY shall mail POSITION AVAILABLE upon whom process against it may 10009. DE off. addr.: CSC, 2711 SSNY shall mail copy of process to: process to c/o Ralph Appelbaum be served. SSNY shall mail process Centerville Rd., Wilmington, DE c/o the LLC 41 CARMINE STREET, Associates, Inc., Attn: Sharaf M. Software Engineer - New York, NY - to LLC c/o Zandra Management, LLC, 19808. Cert. of Form. on file: SSDE, STOREFRONT NEW YORK, NY Hassan at the princ. office of the LLC. Resp for all phases of the software dev 469 7th Avenue, Suite 314, New York, Townsend Bldg., Dover, DE 19901. 10014. Purpose: Any lawful purpose. Purpose: Media production services lifecycle: requirements gathering, NY 10018. Purpose: any lawful act Purp.: any lawful activities. and other related services. analysis, design, programming, testing, Notice of Qualification of Camuto or activity. Group LLC. Authority filed with NY Notice of Qualification of CTAM IPM integration, quality assurance, release & Notice of Qualification of VNO-MHP Notice of Formation of TOMITA Dept. of State on 5/17/11. Office LLC. Authority filed with NY Dept. of maintenance. Req: BS in Comp Sci or JV LLC. Authority filed with NY Dept. TECHNOLOGIES USA, LLC. Arts. of location: NY County. LLC formed in State on 5/9/11. Office location: NY related, plus 2 years prog post bachelor of State on 2/7/11. Office location: NY Org. filed with Secy. of State of NY DE on 1/11/10. NY Sec. of State County. LLC formed in DE on 5/5/11. County. Princ. bus. addr.: 210 Route (SSNY) on 4/22/01. Office location: exp in field including C++, Multi-threading, designated agent of LLC upon whom NY Sec. of State designated as 4 East, Paramus, NJ 07652. LLC NY County. SSNY designated as STL or Boost, database/SQL server and process against it may be served and agent of LLC upon whom process formed in DE on 1/20/11. NY Sec. of agent of LLC upon whom process financial services exp. shall mail process to the principal against it may be served and shall State designated agent of LLC upon against it may be served. SSNY shall Apply with HAP Capital Advisors, LLC business addr.: 411 W. Putnam Ave., mail process to the principal business whom process against it may be mail process to: c/o Clifford David, at [email protected]. Ste. 210, Greenwich, CT 06830. DE address: 599 Lexington Ave., NY, NY served and shall mail process to: c/o 50 E. 77th St., Apt. 8A, NY, NY addr. of LLC: The Corporation Trust Co., 10022. DE address of LLC: c/o The CT Corporation System, 111 8th Ave., 10075. Purpose: any lawful activity. NY, NY 10011, regd. agent upon whom 1209 Orange St., Wilmington, DE Corporation Trust Co., 1209 Orange FINANCIAL SERVICES process may be served. DE addr. of 19801. Cert. of Form. filed with DE Sec. St., Wilmington, DE 19801. Cert. of NOTICE OF FORMATION OF LLC: 1209 Orange St., Wilmington, DE of State, 401 Federal St., Dover, DE Form. filed with DE Sec. of State, Rubenstein Casting and Production, Former Bank CEO has private capital 19801. Arts. of Org. filed with DE Sec. 19901. Purpose: any lawful activity. P.O. Box 898, Dover, DE 19903. LLC. Arts of Org filed with the Secy Purpose: all lawful purposes. of State of NY (SSNY) on 4/25/11. to make both commercial mortgages of State, 401 Federal St., Dover, DE Notice of Qualification of COMCAST 19901. Purpose: all lawful purposes. Office loc: NY Cty. SSNY designated and commercial loans to small busi- VENTURES, LLC. Authority filed with Notice of Qualification of 47 East 34th as agent upon whom process may Notice of Qual. of TIG Falconer Secy. of State of NY (SSNY) on Street (NY) Lender, LLC. Authority be served and shall mail a copy of nesses. Also experts at handling bank Partners, L.P., Auth. filed Sec’y of 05/17/11. Office location: NY County. filed with Secy. of State of NY (SSNY) workouts for small businesses. Call any process to the principal business State (SSNY) 12/10/10. Office loc.: LLC formed in Delaware (DE) on on 4/19/11. Office location: NY County. address: 210 E 68th St., NY, NY Michael at (203)605-4082 or email NY County. LP org. in DE 12/9/10. 05/10/11. SSNY designated as agent LLC formed in Delaware (DE) on 10065. Purpose: any lawful acts. [email protected] SSNY desig. as agent of LP upon of LLC upon whom process against it 4/13/11. SSNY designated as agent whom process against it may be may be served. SSNY shall mail process of LLC upon whom process against LYDIA PROPERTIES, LLC a domestic served. SSNY shall mail copy of to c/o CT Corporation System, 111 it may be served. SSNY shall mail Limited Liability Company (LLC), filed proc. to Att: Michael Tiedemann, Eighth Ave., NY, NY 10011. DE addr. process to: The LLC, 2804 Gateway with the Sec of State of NY on REAL ESTATE 520 Madison Ave., 26th Fl., NY, NY of LLC: c/o Comcast Capital Oaks Dr., #200, Sacramento, CA 3/29/11. NY Office location: New 10022. DE off. addr.: CSC, 2711 Corporation, 1201 N. Market St., Ste. 95833. Address to be maintained in York County. SSNY is designated as Centerville Rd., Wilmington, DE 1000, Wilmington, DE 19801. Cert. of DE: 40 E. Division St., Ste. A, Dover, DE agent upon whom process against COMMERCIAL 19808. Cert. of LP on file: SSDE, Form. filed with DE Secy. of State, 19901. Arts of Org. filed with DE Secy. the LLC may be served. SSNY shall Townsend Bldg., Dover, DE 19901. 401 Federal St., Dover, DE 19901. Of State, 401 Federal St., #4, Dover, DE mail a copy of any process against HUDSON VALLEY AREA of NYS Name/addr. of each gen. ptr. avail. Purpose: Any lawful activity. 19901. Purpose: any lawful activities. the LLC served upon him/her to The 1)Hospital 100 Beds 22ac, assisted living at SSNY. Purp.: any lawful activities. Notice of Qualification of Morgan Notice of Qualification of HealthCor LLC, 390 West End Ave., Unit 6G, 2)School 60K SF Gym Pool Borders Park Notice of Qualification of TAVROS Stanley HedgePremier/Paulson Long Master GP, LLC. Authority filed NY, NY 10024. General Purposes. 3)Investment. Chase Bank Anchor 25K sf MERCER MANAGER LLC. Authority Advantage Plus Fund II LP. Authority with Secy. of State of NY (SSNY) on NOTICE OF FORMATION OF 4)Pvt Airport 3850”RW Dvlopmnt Land filed with Secy. of State of NY (SSNY) filed with NY Dept. of State on 4/21/11. 04/05/11. Office location: NY County. Quartermaster Corps LLC. Articles 5)Legendary Music Venue 1000 Seats on 05/13/11. Office location: NY Office location: NY County. Princ. bus. LLC formed in Delaware (DE) on of Organization filed with the 6)200,000 SF Bio, Hi-Tech, Back Office County. LLC formed in Delaware (DE) addr.: 522 5th Ave., 13th Fl., NY, NY 03/17/11. Princ. office of LLC: Secretary of State of NY (SSNY) on www.crproperties.com 845-485-3100 on 05/12/11. Princ. office of LLC: 10036. LP formed in DE on 4/19/11. Tower, 152 W. 57th March 24, 2011. Office location: Attn: Dov Barnett, 33 W. 19th St., 4th NY Sec. of State designated agent of St., 43rd Fl., NY, NY 10019. SSNY NEW YORK County. SSNY has been OFFICE SPACE Fl., NY, NY 10011. SSNY designated LP upon whom process against it may designated as agent of LLC upon designated as agent upon whom as agent of LLC upon whom process be served and shall mail process to: whom process against it may be process against it may be served. against it may be served. SSNY shall c/o CT Corporation System, 111 8th served. SSNY shall mail process to The Post Office address to which the Astoria Prime Retail Location mail process to the LLC at the princ. Ave., NY, NY 10011, regd. agent the LLC at the princ. office of the LLC. SSNY shall mail a copy of any process Broadway and 31st St. office of the LLC. DE addr. of LLC: upon whom process may be served. DE addr. of LLC: 2711 Centerville against the LLC served upon him/her c/o Corporation Service Co., 2711 DE addr. of LP: 1209 Orange St., Rd., Ste. 400, Wilmington, DE 19808. is: 1240 N. Lake Shore Drive, #4B, 16,000 Sq. Ft. 200’ of Frontage, Centerville Rd., Ste. 400, Wilmington, Wilmington, DE 19801. Name/addr. Cert. of Form. filed with DE Secy. of C/O Ellis Regenbogen, Chicago, IL Will Divide DE 19808. Cert. of Form. filed with of genl. ptr. available from NY Sec. of State, Div. of Corps., John G. 60610. The principal business address Secy. of State of DE, 401 Federal St., State. Cert. of LP filed with DE Sec. Townsend Bldg., 401 Federal St., of the LLC is: 1240 N. Lake Shore Brand New Construction Ste. 4, Dover, DE 19901. Purpose: of State, 401 Federal St., Dover, DE Ste. 4, Dover, DE 19901. Purpose: Drive, #4B, Chicago, IL 60610. 718/777-1422 Any lawful activity. 19901. Purpose: any lawful activity. Any lawful activity. Purpose: any lawful act or activity.

22 | Crain’s New York Business | May 30, 2011 nb22p22-23cl.qxp 5/27/11 1:08 PM Page 23

PUBLIC & LEGAL NOTICES

Notice of Qualification of Klingenstein NOTICE OF FORMATION OF The NOTICE OF FORMATION of Seven Notice of Appl. for Auth. GIREHBAN, NOTICE OF FORMATION of Kanook Fields Asia Fund Management, LLC. First Robin Productions LLC. Story Productions, LLC. Article of LLC, a foreign limited liability company Capital LLC Art. of Org filed Sec’y of Authority filed with NY Dept. of State Articles of Organization filed with Organization filed with the Secretary (LLC). Appl. for Auth. filed with SSNY State (SSNY) 5/4/11. Office location: on 11/18/10. Office location: NY the Secretary of State of NY (SSNY) of State of NY (SSNY) on 04/26/2011. 11/24/10. LLC organized in DE New York County. SSNY designated County. Princ. bus. addr.: 787 7th Ave., on 02/04/2011. Office location: NEW Office location: NY County. SSNY has 11/22/10. NY office location: NY as agent of LLC upon whom process 6th Fl., NY, NY 10019. LLC formed in YORK County. SSNY has been been designated as agent upon whom County. SSNY designated as agent against it may be served. SSNY DE on 10/21/10. NY Sec. of State designated as agent upon whom process against it may be served. for process. SSNY shall mail copy of shall mail copy of process to Edward designated agent of LLC upon whom process against it may be served. The The Post Office address to which the process to: The LLC, 161 Hudson Farrell, Esq., Tarter Krinsky & Drogin process against it may be served and Post Office address to which the SSNY shall mail a copy of any process Street, Apt. 6C, New York, NY 10013. LLP, 1350 Broadway, 11th Floor, New shall mail process to: c/o CT SSNY shall mail a copy of any against the LLC served upon him is Office address of LLC in jurisdiction York, NY 10018. Registered agent Corporation System, 111 8th Ave., NY, process against the LLC served upon 10 West 66th Street, #22B New York, of organization: c/o National Registered upon whom process may be served NY 10011, regd. agent upon whom him/her is: United States NY 10023. Purpose of LLC: to Agents, Inc., 160 Greentree Dr., Ste. is Edward Farrell, Esq., Tarter Krinsky process may be served. DE addr. of Corporation Agents, Inc. 7014 engage in entertainment production. 101, Dover, DE 19904. A copy of the & Drogin LLP, 1350 Broadway, 11th LLC: The Corporation Trust Co., 1209 13th Ave Brooklyn, NY 11228. The Street address of Principal Business Cert. of Form. on file with State of Floor, New York, NY 10018. Purpose: Orange St., Wilmington, DE 19801. principal business address of the LLC location is: 10 West 66th Street, #25H Delaware, Div. of Corp., 401 Federal any lawful activities. Cert. of Form. filed with DE Sec. of is: 307 E. 78th St. 3W, NY, NY 10075. New York, NY 10023. Street, Ste. 4, Dover, DE 19901. State, 401 Federal St., Dover, DE Purpose: any lawful act or activity. Purpose: Any lawful act or activity. Notice of Formation of MAXIMILIAN 19901. Purpose: any lawful activity. THERMOCYCLOMICS, LLC, a IS KING LLC. Arts. of Org. filed with FLAMINGO ROAD NORTH LLC, a domestic Limited Liability Company Notice of Formation of ALEXANDRE Secy. of State of NY (SSNY) on Notice is hereby given a License domestic Limited Liability Company (LLC), filed with the Sec of State of PLOKHOV LLC, a domestic LLC. 04/07/11. Office location: NY County. Number 1253899 for on-premises (LLC), filed with the Sec of State of NY on 2/18/11. NY Office location: Arts. of Org. filed with the SSNY on Princ. office of LLC: 1724 2nd Ave., Summer Tavern Wine has been NY on 4/1/11. NY Office location: NEW YORK County. SSNY is desig- 03/30/2011. Office location: NY Apt. 6A, NY, NY 10128. SSNY desig- applied for by the undersigned to sell New York County. SSNY is designated nated as agent upon whom process County. SSNY has been designated nated as agent of LLC upon whom Wine/Beer at retail under the as agent upon whom process against against the LLC may be served. SSNY as agent upon whom process against process against it may be served. Alcoholic Beverage Control Law at the LLC may be served. SSNY shall shall mail a copy of any process the LLC may be served. SSNY shall SSNY shall mail process to c/o the 15th Street Porch, The High Line, mail a copy of any process against against the LLC served upon him/her mail a copy of process to: 27 W. 20th Arthur L. Levine at the princ. office of New York, NY 10001 for on premises the LLC served upon him/her to to The LLC, 200 W. 57th St., Ste. 1301, St. Ste 1201, NY, NY 10011. the LLC. Purpose: Any lawful activity. consumption. FRIENDS OF THE Cohen and Frankel LLP, 286 Madison NY, NY 10019. General Purposes. Purpose: Any Lawful Purpose. HIGH LINE, INC. D/B/A THE PORCH Ave., Ste. 2100, NY, NY 10017. Notice of Formation of General Purposes. Notice of Formation of Orcan LLC. CandyGirl-NYC LLC Articles of Org. SOPHROSYNE ENERGY INVESTORS, A&A 2011, LLC. Arts. of Org. filed Articles of Org. filed with Secy. of State filed NY Sec. of State (SSNY) ALL ENTERPRISES, LLC, a domestic LLC. Arts. of Org. filed with Secy. of with Secy. of State of NY (SSNY) on of NY (SSNY) on 04/21/11. Office 4/22/2011. Office in NY Co. SSNY 1/6/11. Office in NY County. SSNY Limited Liability Company (LLC), filed State of N.Y. (SSNY) on 1/31/11. loc.: New York Co. SSNY designated desig. agent of LLC upon whom designated agent of LLC upon whom with the Sec of State of NY on 2/9/11. Office location: New York County. as agent of LLC upon whom process process against it may be served. NY Office location: New York County. process may be served. SSNY shall SSNY designated as agent of LLC SSNY shall mail process to c/o SSNY is designated as agent upon against it may be served. SSNY shall mail copy of process to c/o Kaplan upon whom process against it may Reinhardt LLP, 44 Wall St 10th Fl, NY, whom process against the LLC may mail process to the LLC, 149 W. 36th Fox Kilsheimer LLP, 850 3RD Ave., be served. SSNY shall mail process NY 10005. Purpose: General. be served. SSNY shall mail a copy Street, 6th Fl., New York, NY 10005. 14th Flr., NY, NY 10022, which is to: c/o Andrew M. Jacobs, 1 Penn of any process against the LLC Purpose: any lawful act or activity. also the principal business location. Plaza, Ste. 2527, New York, NY Notice of Formation of 2EG Media, served upon him/her to Al Lawrence Purpose: Any lawful purpose. 10119. Purpose: any lawful activity. LLC. Arts. of Org. filed with Secy. of The Public is hereby notified of the & Company, Inc., c/o Anthony Formation of a limited liability Notice of Formation of DPA New 2766 Name: ARCADIA HAVEN LLC Art. Of State of N.Y. (SSNY) on 1/06/11. Office Degrotta, 225 E. 45th St., NY, NY company in the county of Kings in Barnes, LLC. Arts. of Org. filed with Org. Filed Sec. Of State of NY location: New York County. SSNY des- 10017. General Purposes. ignated as agent of LLC upon whom the State of New York. The company NY Dept. of State on 4/8/11. Office 04/01/2011. Off. Loc.: New York Co. process against it may be served. Notice of Formation of UPPER name: HUR Trading LLC. The location: NY County. Sec. of State SSNY designated as agent upon SSNY shall mail process to: The LLC, MANHATTAN PARKING LLC. Arts. of address is: 1074 Coney Island designated agent of LLC upon whom whom process against it may be 40 Harrison St., #31G NY, NY 10013. Org. filed with Secy. of State of NY Avenue, Brooklyn, NY 11230. process against it may be served and served. SSNY to mail copy of Purpose: any lawful activity. (SSNY) on 04/21/11. Office location: shall mail process to the principal busi- process to THE LLC, C/O Mindy NY County. Princ. office of LLC: Notice is hereby given that a license ness addr.: c/o The Dermot Company, Stern, Esq., Schoeman, Updike & Notice of Formation of Skin Holdings, 405 Park Ave., Ste. 1103, NY, NY (#TBA) for BEER & WINE has been 729 7th Ave., 15th Fl., NY, NY 10019. Kaufman LLP, 60 East LLC. Arts. of Org. filed with NY Dept. 10022. SSNY designated as agent applied for by GAZALA 2 INC, at Purpose: any lawful activity. 39th Fl., New York, NY 10165. of State on 4/27/11. Office location: of LLC upon whom process against retail, in a restaurant, under the ABC Purpose: Any lawful act or activity. NY County. Sec. of State designated it may be served. SSNY shall mail Law, at 380 COLUMBUS AVE. A/K/A NOTICE OF FORMATION of CAGE LLC. agent of LLC upon whom process process to c/o Phillips Nizer LLP, 101 W. 78 ST. NY, NY 10024 for on- Arts of Org filed with the Secy of KNS Enterprises LLC. filed with Secy. against it may be served and shall 666 Fifth Ave., NY, NY 10103. premises consumption. State of NY (SSNY) on 2/16/10. Office of State of NY (SSNY) on 3/17/11. Ofc mail process to: Klestadt & Winters, Purpose: Any lawful activity. location: NY County. SSNY designated in NY Cty. SSNY designated agent of LLP, 570 7th Ave., 17th Fl., NY, NY Name: 1180 AOA PROPERTIES LLC as an agent upon whom process may LLC upon whom process against it 10018, Attn: Ian R. Winters, regd. Notice of Formation of 273-277 Art. Of Org. Filed Sec. Of State of NY be served AND shall mail a copy of any may be served. SSNY shall mail agent upon whom process may be Kosciuszko, L.P. Certificate filed with 03/15/2011. Off. Loc.: New York Co. process to: Jose Martinez, 325 E 41st process to 240 E. 83rd Apt 5C, New served. Purpose: any lawful activity. Secy. of State of N.Y. (SSNY) on SSNY designated as agent upon whom St. Suite 305 NY NY 10017. Principal York, NY 10028. Purpose: General. 11/22/10. Office location: NY County. process against it may be served. NOTICE OF REGISTRATION of business address: 83 A Hester St. SSNY designated as agent of LP SSNY to mail copy of process to NY NY. Purpose: any lawful acts. Notice of Formation of MOBILE Newman & Morrison LLP. upon whom process against it may be TRANSIT SOLUTIONS LLC. Arts. of Certificate filed with Secy. of State of THE LLC, 747 , 22nd served. SSNY shall mail process to: Fl., New York, NY 10017. Purpose: Notice of Formation of Choctaw LLC. Org. filed with Secy. of State of NY NY (SSNY) on 4/5/11. Office location: 37 W. 20th St., Ste. 603, NY, NY 10011. Articles of Organization filed with Secy. (SSNY) on 04/29/11. Office location: NY County. SSNY designated as Any lawful act or activity. Name/address of each genl. ptr. avail- of State of NY (SSNY) on 03/15/11. NY County. Princ. office of LLC: 322 agent of LLP upon whom process able from SSNY. Term: until 12/31/2060. JAJU Realty LLC. Arts. of Org. filed Office location: New York Co. SSNY West, NY, NY 10025. against it may be served. SSNY shall Purpose: any lawful activity. with Secy. of State of NY (SSNY) on designated as agent of LLC upon mail process to the principal business SSNY designated as agent of LLC 2/16/11. Office in NY County. SSNY whom process against it may be address: 44 Wall Street, 20th Floor, Notice of Formation of GALLUS upon whom process against it may designated agent of LLC upon whom served. SSNY shall mail process to be served. SSNY shall mail process New York, NY 10005. Purpose: PROPERTIES, LLC. Arts. of Org. filed process against it may be served. with Secy. of State of NY (SSNY) on the LLC, 900 Greensward Lane, Apt. to c/o Alex Bell at the princ. office of Practice the Profession of Law. SSNY shall mail process to c/o Bryan 05/09/11. Office location: NY County. G207, Delray Beach, FL 33445. the LLC. Purpose: Any lawful activity. Notice of Formation of Mindsmack.tv SSNY designated as agent of LLC W Kishner & Associates, 420 Purpose: any lawful act or activity. LLC. Arts. of Org. filed with Secy. of Notice of Formation of AAXIAL upon whom process against it may Lexington Ave Ste 300, NY, NY State of NY (SSNY) on 03/04/08. Maat Enterprises LLC. Arts. of Org. RESOURCES LLC. Arts. of Org. filed be served. SSNY shall mail process 10170. Purpose: General. Office loc.: NY Co. SSNY designated filed with Secy. of State of NY (SSNY) with Secy. of State of NY (SSNY) on to Corporation Service Co., 80 State as agent of LLC upon whom process Notice of Formation of MSI Hospitality on 3/22/11. Office in NY County. SSNY 04/12/11. Office location: NY County. St., Albany, NY 12207-2543. against it may be served. SSNY shall Resources, LLC. Arts. Of Org. filed designated agent of LLC upon whom Princ. office of LLC: 405 Lexington Purpose: Any lawful activity. mail process to the LLC, c/o Lazer, with NY Dept. of State on 3/31/11. process against it may be served. Ave., 7th Fl., NY, NY 10174. SSNY Aptheker, et al., 225 Old Country Rd, Name of LLC: MADE NICE, LLC. Art. NY Sec. of State designated agent of SSNY shall mail process to Jonathan designated as agent of LLC upon Melville, NY 11747, Attn: Scott Feuer. of Org. filed Dept. of State of NY on LLC upon whom process against it S Berck, LLC, 757 3rd Ave 20th Fl, whom process against it may be Purpose: any lawful act or activity. 1/19/11. Off. Loc. in NY: New York Cty. may be served and shall mail process NY, NY 10017. Purpose: General. served. SSNY shall mail process to to c/o General Counsel, 6 E 43rd MOUNTAIN 99, LLC Articles of Org. Secy. of State designated as agent the LLC at the addr. of its princ. of LLC upon whom process against Street, NY, NY 10017. Primary place Notice of Formation of LEFKAS office. Purpose: Any lawful activity. filed NY Sec. of State (SSNY) of business is 6 E 43rd Street, NY, REALTY LLC. Arts. of Org. filed with 4/5/2011. Office in NY Co. SSNY it may be served. Sec. of State shall mail a copy of process to: The LLC, NY 10017. Purpose: Facility rentals. Secy. of State of NY (SSNY) on Notice of Formation of DON ANTONIO desig. agent of LLC upon whom 10/22/01. Office location: NY County. RESTAURANT, LLC. Arts. of Org. filed process may be served. SSNY shall c/o Dornbush Schaeffer Strongin & The Public is hereby notified of the SSNY designated as agent of LLC with Secy. of State of NY (SSNY) on mail copy of process to c/o The Law Venaglia, LLP, 747 Third Ave., NY, NY Formation of a limited liability com- upon whom process against it may be 05/19/11. Office location: NY County. Firm of Hugh H. Mo, P.C., 225 10017, Attn: Landey Strongin, Esq. Purpose: any lawful activity. pany in the county of Kings in the served. SSNY shall mail process to: Princ. office of LLC: 28 Iris Circle, Glen Broadway, Ste. 2702, NY, NY 10007. State of New York. The company Purpose: Any lawful purpose. 44-12 43rd Avenue, Sunnyside, NY Rock, NJ 07452. SSNY designated Notice of Qualification of Blackstone name: Thow LLC. The address is: 23 11104. Purpose: any lawful activity. as agent of LLC upon whom process Notice of Qualification of Braemar Real Estate Partners VII.TE.1 L.P. Brighton 4 Terr, Brooklyn, NY 11235. against it may be served. SSNY shall Energy Ventures III, LP. Authority filed Authority filed with NY Dept. of State Notice of Qualification of C-III Recovery mail process to Corporation Service Notice of Qualification of JER with Secy. of State of NY (SSNY) on on 4/22/11. Office location: NY County. Fund I TIER Holdings LLC. Authority Co., 80 State St., Albany, NY 12207- Management, L.L.C. Authority filed 1/7/11. Office location: NY County. LP formed in DE on 4/18/11. NY Sec. filed with NY Dept. of State on 2543. Purpose: Operate a restaurant. LP formed in Delaware (DE) on 8/20/10. of State designated agent of LP upon with NY Dept. of State on 4/26/11. NYS 4/6/11. Office location: NY County. SSNY designated as agent of LP whom process against it may be fict. name: JER Partners LLC. Office Princ. bus. addr.: 300 N. Main St., Notice of Qual. of Half Moon Capital upon whom process against it may served and shall mail process to the location: NY County. Princ. bus. addr.: Greenville, SC 29601. LLC formed in Partners, LP, Auth. filed Sec’y of be served. SSNY shall mail process principal business addr.: c/o The 1650 Tysons Blvd., Ste. 1600, McLean, DE on 4/4/11. NY Sec. of State des- State (SSNY) 3/4/11. Office loc.: NY to: c/o Braemar Energy Ventures, Blackstone Group L.P., 345 Park Ave., VA 22102. LLC formed in DE on ignated agent of LLC upon whom County. LP org. in DE 3/1/11. SSNY LLC, 340 Madison Ave., 18th Fl., NY, NY, NY 10154. Regd. agent upon 5/7/10. NY Sec. of State designated process against it may be served desig. as agent of LP upon whom NY 10017, also the address of the whom process may be served: CT agent of LLC upon whom process and shall mail process to: c/o CT process against it may be served. principal office. DE address of LP: Corporation System, 111 8th Ave., NY, against it may be served and shall Corporation System, 111 8th Ave., SSNY shall mail copy of proc. to c/o National Registered Agents, Inc., NY 10011. DE addr. of LP: c/o The mail process to: c/o Corporation NY, NY 10011, regd. agent upon Att: Eric DeLamarter, 168 First Ave., 160 Greentree Dr., St 101, Dover, DE Corporation Trust Co., 1209 Orange Service Co., 80 State St., Albany, NY whom process may be served. DE NY, NY 10009. DE off. addr.: CSC, 19904. Name/address of genl. ptr. St., Wilmington, DE 19801. Name/addr. 12207. DE addr. of LLC: 2711 addr. of LLC: 1209 Orange St., 2711 Centerville Rd., Wilmington, available from SSNY. Cert. of LP filed of genl. ptr. available from NY Sec. of Centerville Rd., Ste. 400, Wilmington, Wilmington, DE 19801. Cert. of DE 19808. Cert. of LP on file: SSDE, with DE Secy. of State, 401 Federal State. Cert. of LP filed with DE Sec. DE 19808. Cert. of Form. filed with DE Form. filed with DE Sec. of State, Townsend Bldg., Dover, DE 19901. St., Ste. 4, Dover, DE 19901. of State, 401 Federal St., Dover, DE Sec. of State, 401 Federal St., Dover, 401 Federal St., Dover, DE 19901. Name/addr. of each gen. ptr. avail. Purpose: any lawful activities. 19901. Purpose: any lawful activity. DE 19901. Purpose: any lawful activity. Purpose: any lawful activity. at SSNY. Purp.: any lawful activities.

May 30, 2011 | Crain’s New York Business | 23 20110530-NEWS--0024-NAT-CCI-CN_-- 5/26/2011 9:07 PM Page 1

FOR THE RECORD

scientific research facility. Contact STOCK TRANSACTIONS 187,500 shares at $25.83, in a transaction Maryann Catalano at (212) 312-3969 or worth $4,843,425. He now directly holds ABOUT THIS SECTION [email protected]. Following are recent insider transactions at 1,799,150 shares. FOR THE RECORD is a weekly listing of information from the public record that New York’s largest publicly held companies ● Housing Authority filed with the Securities and Exchange Joseph Ianniello, executive vice can help businesspeople in the New York area find opportunities, potential Seeks competitive sealed bids between Commission by executives and major president and chief financial officer, new clients and updates on competitors. 10 a.m. and 10:10 a.m. on June 10 for shareholders. Listings are in order of exercised options on 66,000 shares of To ask questions or get more information on this section, contact Suzanne the installation of vinyl composition tiles transaction value.The information was common stock at $5.20 between May Panara at [email protected]. in various apartment developments in obtained from Thomson Reuters. 13 and May 17, in a transaction worth Brooklyn. Bid documents are available $343,200. On the same day, he sold at www.nyc.gov/nychabusiness. To ● Hain Celestial Group (HAIN) 66,000 shares at prices ranging from make inquiries, contact Sabrina Irwin D. Simon, president, chairman $25.77 to $26.27, in a transaction worth Steverson at (212) 306-6771 or and CEO, exercised options on 245,000 $1,713,360. He now directly holds BANKRUPTCIES $30,000; and SOS Cesspool, owed [email protected]. shares of common stock at $25.40 59,945 shares. $4,453. between May 10 and May 17, in a The following listings are selected from the ● Housing Authority transaction worth $6,223,000. During ● C.R. Bard Inc. (BCR) most recent available filings by companies Seeks competitive sealed bids between the same period, he sold 245,000 shares Todd C. Schermerhorn, senior vice seeking bankruptcy protection in the GOVERNMENT CONTRACT 10:15 a.m. and 10:25 a.m. on June 10 at prices ranging from $33.21 to $34.94, president and chief financial officer, Southern and Eastern Districts of New OPPORTUNITIES for maintenance painting of apartments in a transaction worth $8,411,650. He exercised options on 33,125 shares of York. Information was obtained from U.S. in the Bronx and Brooklyn. Bid now directly holds 442,893 shares. common stock at $30.51 on May 16, in Bankruptcy Court records available on Following are selected contract documents are available at a transaction worth $1,010,644. On the Public Access to Court Electronic Records. opportunities recently announced by New www.nyc.gov/nychabusiness. To ● Weight Watchers International (WTW) same day, he sold 33,125 shares at Listings are in alphabetical order. York City agencies.To learn how to sell make inquiries, contact Sabrina Ann M. Sardini, chief financial officer, $109.48, in a transaction worth goods and services to city government, visit Steverson at (212) 306-6771 or exercised options on 60,000 shares of $3,626,558. He now directly holds ● Lenox 126 Realty www.nyc.gov/selltonyc. For a searchable [email protected]. common stock at $36.32 on May 13, in 132,654 shares. 1027 Hylan Blvd., Staten Island database of current procurement notices, a transaction worth $2,179,200. On the Filed for Chapter 11 bankruptcy visit www.nyc.gov/cityrecord. Listings are same day, she sold 60,000 shares at ● Viacom (VIA’B) protection on May 12. The filing cites alphabetical by category and department. REAL ESTATE DEALS prices ranging from $81.80 to $82.69, in Carl D. Folta, executive vice president, estimated liabilities of $10,000,001 to a transaction worth $4,941,839. She corporate communications, exercised $50 million and estimated assets of CONSTRUCTION SERVICES Companies that would like to have now directly holds 7,224 shares. options on 58,867 shares of common $10,000,001 to $50 million. Among the ● Department of Citywide Administrative details of their recent transactions stock at prices ranging from $35.26 to creditors with the largest unsecured claims Services appear in these listings should e-mail ● PepsiCo (PEP) $43.86 on May 13, in a transaction are the law office of Lorenzo Deluca, Requests proposals by 12 p.m. on June descriptions following this format to Albert P.Carey, president and chief worth $2,294,204. On the same day, he owed $45,000; Kurzman Eisenberg 29 from appropriately qualified [email protected], with executive of Frito-Lay North America, sold 58,867 shares at $49.76, in a Corbin & Lever, owed $22,000; and developers to supply electricity “Real estate transaction” in the subject exercised options on 91,110 shares of transaction worth $2,928,969. He now D&D Elevator, owed $7,000. generated by solar photovoltaic systems line, or enter them online at common stock at $50.00 on May 13, in a directly holds 14,097 shares. through a long-term power purchase crainsnewyork.com/submitadeal. Deals transaction worth $4,555,500. On the ● MAC Conglomerate agreement. Under the agreement, the are listed in order of square footage. same day, he sold 91,110 shares at ● Alcoa (AA) 398-A Hancock St., Brooklyn developer will provide electricity services $71.05, in a transaction worth John Thuestad, executive vice president Filed for Chapter 11 bankruptcy through the installation, ownership and COMMERCIAL $6,473,238. He now directly holds and group president of global primary protection on May 13. The filing cites operation of PV systems on the rooftops ● RP Management signed a 10-year 142,917 shares. products, exercised options on 135,254 estimated liabilities of $100,001 to of five city-owned buildings. A copy of lease for 13,280 square feet at 110 E. shares of common stock at prices $500,000 and estimated assets of the RFP is available at the DCAS Office 59th St., a 37-story building owned by ● CBS Corp. (CBS) ranging from $8.33 to $13.54 on May $100,001 to $500,000. Among the of Contracts, 1 Centre St., room 1860, Jack Resnick & Sons. The firm occupies Leslie Moonves, president, chief 17, in a transaction worth $1,511,789. creditors with the largest unsecured between 9 a.m. and 4 p.m. To make the 33rd floor. Michael Goldman and executive and a director, exercised options On the same day, he sold 145,991 shares claims is the New York City inquiries, contact Erkan Solak at Daniel Posy of Studley represented the on 187,500 shares of common stock at at $16.40, in a transaction worth Department of Environmental (212) 669-3530 or [email protected]. tenant, while Dennis Brady represented $13.43 on May 16, in a transaction worth $2,394,749. He now directly holds Protection, owed $5,206.45. the landlord in-house. The asking rents $2,518,125. On the same day, he sold 145,991 shares. Ⅲ ● Department of Parks and Recreation on the top floors are $100 a square foot. ● Madison Hotel Owners Seeks competitive sealed bids by 10:30 440 W. 41st St., Manhattan a.m. on June 10 for the planting of new ● Bruce Weber signed a 10-year lease Filed for Chapter 11 bankruptcy and replacement street trees at various for 11,150 square feet at 205 Hudson St., DEALS ROUNDUP protection on May 16. The filing cites locations in Manhattan and Queens. Bid a building owned by Trinity Real Estate. estimated liabilities of $1,000,001 to documents can be purchased in the The firm will occupy the 10th floor. $10 million and estimated assets of Blueprint Room, Olmsted Center, George Grace of G.E. Grace & Co. TRANSACTION SIZE $1,000,001 to $10 million. Among the Flushing, Queens, from 8 a.m. to 3 p.m. represented the tenant, while Tom SELLER/TARGET (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE creditors with the largest unsecured Contact Juan Alban at (718) 760-6771 Lynch negotiated on behalf of the AlpInvest Partners N.V., $13,735.9 Takeda Pharmaceutical Co. SB M&A claims are Chaim Cohen, owed or [email protected]. landlord in-house. The asking rent was DLJ Merchant Banking Partners $750,000; Goldberg & Rimberg, owed $43 a square foot. (Manhattan), Nordic Capital, $135,000; and Shlomo Segev, owed ● Department of Parks and Recreation Coller Capital Ltd., Avista $80,000. Seeks competitive sealed bids by 10:30 ● GroupMe signed a lease for 5,300 Capital Holdings (Manhattan)/ Nycomed SICAR S.C.A. a.m. on June 17 for the reconstruction of square feet at 26 W. 17th St., a building ● Profile Technologies Inc. the basketball courts and a portion of owned by The Winter Organization. DLJ Merchant Banking Partners $2,300.0 Toshiba Corp. SB M&A (Manhattan), Allianz Capital 2 Park Ave., suite 201, Manhasset, L.I. the tennis courts in Inwood Hill Park Slater Traaen of the Kaufman Partners GmbH, Sofina SA, Bayard Filed for Chapter 11 bankruptcy and the reconstruction of Neufeld Organization represented the tenant, Energy Pty. Ltd., Dubai International protection on May 9. The filing cites Playground in Riverside Park. Bid while Robert Fink represented the Capital, Australian Capital Equity estimated liabilities of $500,001 to documents can be purchased in the landlord in-house. The asking rent was Pty. Ltd., Propel Investments Pty. Ltd., $1 million and estimated assets of $0 to Blueprint Room, Olmsted Center, $37 a square foot. Marinya Holdings Pty. Ltd./ $50,000. Among the creditors with the Flushing, Queens, from 8 a.m. to 3 p.m. Landis+Gyr AG largest unsecured claims are Estate of Contact Juan Alban at (718) 760-6771 ● The American Symphony Orchestra Lindsay Goldberg (Manhattan)/ $575.0 Publicis Groupe SA SB M&A Chuck Christenson, owed $109,500; or [email protected]. has signed a lease for 4,800 square feet at Rosetta Marketing Strategies Chartis Insurance, owed $100,000; and 263 W. 38th St., a 17-story building Group Inc. Pulse Power Physics Inc., owed GOODS AND SERVICES owned by Handler Real Estate KKR & Co. (Manhattan)/ $525.3 TPG Capital FB M&A $60,814.78. ● Economic Development Corp. Organization. Peter Newman of Primedia Inc. Requests proposals by 4 p.m. on June 17 Handler Real Estate represented the Essex Woodlands Health $331.1 Stryker Corp. SB M&A ● Seafood Sales Inc. for the development and execution of tenant, while his colleague Scott Handler Ventures, Lehman Brothers 43 Elderberry Road, Syosset, L.I. the “Designer as Entrepreneur” represented the landlord in-house. The private equity division (Manhattan), Filed for Chapter 7 bankruptcy program: an intensive, classroom-style asking rent was $28 a square foot. William Harris Investors Inc., Cortina Asset Management/ protection on May 17. The filing cites “mini-MBA” to educate designers on Orthovita Inc. estimated liabilities of $1,000,001 to the day-to-day aspects of running a RETAIL $10 million and estimated assets of fashion business. The program is part of ● Barnes & Noble renewed a lease for Iconix Brand Group Inc. $300.0 Not disclosed GCI $1,000,001 to $10 million. Among the Fashion NYC 2020, a yearlong 22,200 square feet at 70-00 Austin St. in 3i Group plc, Prism VentureWorks, $295.0 Skyworks Solutions Inc. SB M&A creditors with the largest unsecured program launched by fashion industry Forest Hills, Queens, a building owned RWI Ventures, VenGrowth Asset Management Inc., Matrix Asset claims are Castlerock Fisheries, owed stakeholders and NYCEDC. For more by Muss Development. Don Kuszmar Management Inc., BDC Venture Capital, $295,800; Wells Fargo, owed $51,500; information, contact Maryann represented the tenant in-house, while Samsung Venture Investment Corp., and Capital One, owed $40,400. Catalano at (212) 312-3969 or Stan Markowitz represented the Covera Ventures, Vista Ventures, [email protected]. landlord in-house. The asking rent was Caisse de dépôt et placement du Québec, ● Tudor Oaks Owners Corp. $75 a square foot. W Capital Partners (Manhattan), 67-50 Thornton Place, Queens ● Economic Development Corp. Shiprock Capital, Fairhaven Capital Filed for Chapter 11 bankruptcy Requests proposals by 4 p.m. on July 28 ● Ricky’s signed a lease for 3,000 square Partners, Garvin Hill Capital Partners/ protection on May 18. The filing cites for the redevelopment of a Department feet at 2385 Broadway, a building owned SiGe Semiconductor Inc. estimated liabilities of $1,000,001 to of Sanitation site at 525 E. 73rd St. The by the Zabar family. Craig Slosberg of Selected deals announced for the week ended May 22 involving companies in metro New York. $10 million and estimated assets of site is about 68,000 square feet, zoned Newmark Knight Frank Retail FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing shares of a company with the participation of a financial buyer. GCI: Growth capital investment $1,000,001 to $10 million. Among the M3-2 and partially occupied by a month- represented the tenant, while Christine represents new money invested in a company for a minority stake. SB M&A: Strategic buyer creditors with the largest unsecured to-month tenant. Redevelopment Emery of The Lansco Corp. negotiated M&A represents a minority or majority acquisition of existing shares of a company without the claims are National Grid, owed proposals must use the site for expansion on behalf of the landlord. The asking participation of a financial buyer. source: capitaliq $41,463.55; CBS Electric Inc., owed or creation of a health care, education or rent was $150 a square foot.

24 | Crain’s New York Business | May 30, 2011 20110530-NEWS--0025-NAT-CCI-CN_-- 5/27/2011 7:46 PM Page 1

A personable numbers guy, the more like chief executives of a pub- commissioner has ventured to DEP’S INNOVATIVE lic utility, they have more autonomy Innovation flowing Brooklyn to sell Greenpoint resi- INITIATIVES than other agency heads to try new dents on a partnership with Nation- ideas—or reject them. When Ms. Continued from Page 3 state Department of Environmental al Grid to convert methane from the 1 Build green roofs and porous Gelber was commissioner, she scru- He faced a difficult truth. Hav- Conservation. “When Cas got Newtown Creek wastewater treat- roads to absorb rain tinized Mr. Goldsmith’s privatiza- ing spent $15 billion to comply with there, because he was a manager ment plant into natural gas. 2 Turn landfills into solar and tion efforts in Indianapolis before federal mandates,DEP had 835,000 from the City Hall mold of manage- “There was an aha moment wind farms deciding not to adopt them. Like- customers furious about three con- ment, he was able to give these in- when they thought, ‘Wow, when I 3 wise, Mr. Holloway has convinced secutive years of water-rate increas- novative programs urgency.” flush, I’m going to heat somebody’s Let union employees bid on Mr. Goldsmith that DEP engineers es of 10% or more. home,’”said Vincent Sapienza,dep- consulting contracts are better-equipped to solve certain “It looked like double-digit in- Plumbing the department’s depths uty commissioner for wastewater 4 Turn solid-waste gas into energy problems than consultants are. creases as far as the eye could see,” Mr. Holloway graduated from treatment. The decision 15 years ago to keep Mr. Holloway said. Harvard and the University of Chi- The Koch administration pio- core operations in-house may have He instituted an 8% budget cut cago Law School. But he jokes that neered DEP’s practice of issuing But that also makes it hard for enabled some of Mr. Holloway’s in- and prioritized projects based on the his summers working at construc- bonds, which allowed the depart- other agencies in city government to novations,such as collaborating with savings and efficiencies they could tion sites owned by his father, a res- ment to craft its own capital plan— emulate DEP,said Marilyn Gelber, other agencies. When the marriage deliver.He hired managers with pri- idential developer in Philadelphia, the largest for any city agency—and who ran the department from 1994 works,Ms.Gelber said,“you’ve creat- vate-sector experience, appointed prepared him to become the city’s not have to compete with education to 1996. ed leverage,and the taxpayers are get- DEP’s first chief financial officer plumber-in-chief. and public safety agencies for funding. Because DEP commissioners are ting some value for their money.” Ⅲ and reorganized departments ac- cording to goals,such as sustainabil- ity, to better coordinate across for- merly distinct divisions. Mr. Holloway’s restructuring in- spired new approaches to old prob- March 2011 March 2011 February 2011 February 2011 February 2011 lems.He resurrected an idea that the agency had considered years earlier and that Mr.Goldsmith tested in In- dianapolis:allowing unionized work- a portfolio company of R ers to bid on department contracts. has acquired Mr. Holloway had his agency treat ratepayers like the customers they are, civic leaders say. He in- $1 Billion $1.5 Billion $55 Million $145 Million $585 Million stalled wireless meters to provide Senior Secured Senior Unsecured Senior Secured Senior Secured Senior Secured more accurate assessments. He at- Credit Facilities Notes Credit Facilities Credit Facilities tended community meetings. Credit Facility An agreement with environ- Joint Bookrunner, Sole Bookrunner, Joint Bookrunner, Joint Bookrunner, mentalists last year to improve Ja- Joint Lead Arranger Joint Lead Arranger Sole Placement Agent Joint Lead Arranger Joint Lead Arranger maica Bay’s water quality showed that the department could respond to a problem without being ordered January 2011 January 2011 December 2010 November 2010 November 2010 to do so by the courts. But the accord—to reduce nitro- gen in wastewater—is one reason the department’s heavy electricity has been acquired by use will grow by 53% in the next four years. Mr. Holloway’s solution is to & make the system more efficient and $250 Million $1 Billion $325 Million $225 Million turn its waste into energy. Senior Unsecured Senior Secured He aims to keep electricity costs Senior Notes Credit Facilities $190 Million Senior Notes Credit Facilities at $100 million a year, in part Senior Secured through private-sector partnerships Credit Facilities that will construct facilities to turn wastewater into electricity, and Joint Bookrunner, Sole Bookrunner, Joint Bookrunner, Joint Bookrunner Joint Lead Arranger Joint Lead Arranger Lead Manager Joint Lead Arranger build wind and solar farms on city land.One such project is under way: a plant that will pipe DEP’s methane emissions back into the natural gas grid. Sewage problems Delivering results The agency has a green infra- We know that successful, long-term business relationships structure plan to address the long- depend upon delivering results for our clients. standing problem of sewage flowing into the city’s waterways during At KeyBanc Capital Markets,® more than 500 professionals storms.To make the concrete jungle leverage extensive industry knowledge, equity and debt capital more absorbent,the department will markets expertise, and a leading merger and acquisition advisory encourage planting green roofs, dig practice to deliver strategic solutions that help our clients capitalize water catchments under city trees, on opportunities. and pave streets with porous cement, which means less storm water will flood treatment plants. The im- provements,some of which have be- gun, do double duty by helping oth- er agencies pay for improvements, like roadwork and trees, that they previously funded on their own. Mr. Holloway has met costly To learn more: clean-water mandates this year Contact Randy Paine, Co-Head 216-689-4119, while holding water-rate hikes to Doug Preiser, Co-Head 216-689-5944 or single digits—7.5%—for the first Amy K. Carlson, EVP and Group Head, time in five years. Debt Capital Markets 216-689-4227. In short, the manager has be- Visit key.com/kbcm come the innovator. “New York City is now leading KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member NYSE/ the nation in looking at alternative FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities ways of addressing these issues,” representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. said Stuart Gruskin, former execu- Key.com is a federally registered service mark of KeyCorp. ©2011 KeyCorp ADL3239 tive deputy commissioner of the

May 30, 2011 | Crain’s New York Business | 25 20110530-NEWS--0026-NAT-CCI-CN_-- 5/27/2011 7:35 PM Page 1

Retailers follow the money

Continued from Page 1 dollars,” said Amy Klaris, a strate- “The increase in raw ma- velopment. gist at Kurt Salmon. She notes that terial costs is pushing a lot of As they face unprecedented producing clothes in-house has stores in the direction of trying to pressure from rising costs for raw been trending up for the past five to offset some of these costs with their materials, competition from online seven years. own product,” said Jeff Edelman, discounters and shoppers still reluc- director of retail and consumer ad- tant to spend, more and more de- Hanging on to dollars visory services at RSM McGladrey. partment stores are turning to a Analysts say that even though Of course, with reward comes money-saving solution: private-la- private-label lines often require ad- risk. The retailer eats all the costs if bel and exclusive apparel lines. ditional staff, they are able to add a private collection fails with shop- Midrange chains such as Macy’s about 7% to a store’s profit margins. pers, so investing resources to mar- and Kohl’s, as well as upscale stores, ket it becomes more important than including Bloomingdale’s and Saks ever, according to experts. , have recently added During the “It’s all about consumers walking more private labels. into a place and having familiarity EXCLUSIVELY OURS: From left, Mango for J.C. Penney, Saks’ Crown label and Macy’s Bar III. Such brands allow retailers to recession, there with a brand,” said Andy Jassin, eliminate middlemen and capture managing director of Jassin Con- more earnings. Exclusive partner- was a move to sulting Group. Selling recognizable the year-earlier period. collection with Valentino. ships, such as Macy’s with Madon- names is what allows a discounter J.C. Penney has focused on ex- For the quarter ended April 30, na and J.C. Penney Co.’s with Liz get aggressive such as Marshall’s to thrive,he adds. clusive lines.In addition to Liz Clai- Saks reported a $28.4 million prof- Claiborne, are also on the rise. Macy’s rolled out Bar III in a borne, it has deals with cosmetics it, 51% higher than the same quar- At some stores,the mix of private carefully planned promotion. In chain Sephora and fast-fashion re- ter last year. Same-store sales were and exclusive lines has risen to 40% conjunction with New York’s winter tailer Mango. up 10.2% during the period—the from 20% a few years ago,according fashion week, the chain hosted a biggest rise in four years. to retail consultancy Kurt Salmon. Stores can also choose when and “pop-up” shop in the Flatiron dis- Exciting to shop “The idea is that we can differen- The development stands in stark how much to mark down their goods, trict to introduce the brand. It also Saks has also been ramping up its tiate ourselves from our competition contrast to the recession,when most while reducing prices on designers’ used social media, incorporating private-label offerings. The high- if we have things that are not out department stores focused on big- lines is usually a joint decision. suggestions from influential fashion end retailer unveiled a menswear there and readily available to other name designers to get shoppers in When stores do work with out- bloggers into Bar III designs. line, Crown, late last year and plans retailers,” said Tom Ott, senior vice the door. side designers, they’re more fre- Cincinnati-based Macy’s re- to launch a second one geared toward president and men’s general mer- “Retailers got more aggressive quently asking for exclusive collec- ported net income of $131 million younger men in the fourth quarter. chandise manager at Saks. with the recession and are looking tions, which help distinguish a for its first fiscal quarter,which end- The company has also expanded its Otherwise, Mr. Ott said, “it’s all at how they can keep more of the store’s brand and add cachet. ed April 30, versus $23 million for exclusive offerings,including a men’s the same and not exciting to shop.”Ⅲ

properties. Prickly partners seek fresh cash In another suit, filed in early Brooklyn May, Mr. Lis alleges that RFR is withholding $4.4 million owed him Continued from Page 1 bought out in exchange for voting have balked at the $1,800 a square on the sale of the leasehold on 400 hospital aging director of Real Capital Ana- for the reorganization plan while si- foot that RFR is seeking, and ex- Park Ave. late last year. He says that lytics. multaneously trying to leverage perts insist that $1,200 to $1,500 a RFR lent that cash to a portfolio of The issues of Messrs. Rosen and their position to get Mr.Brant to sell square foot is more reasonable. Stamford, Conn., properties that it Fuchs’ firm, RFR Holding, stand his Seagram stake, which is includ- had bought at the peak of the mar- in a bind out because of the high-profile na- ed in what is for sale now. Lis seeks his due ket in 2007.The firm had to renego- ture of the players, as well as their At about the same time, Mr. Meanwhile, Mr. Lis’ suit, filed in tiate the loan after the value of the spouses and blue-chip portfolio. Brant and Ms. Seymour were going January, demands at least $7.3 mil- buildings plunged. BY BARBARA BENSON And although Mr. Rosen told The through an es- Like many other developers in New York Times late last year that pecially toxic the past couple of years, RFR has Brookdale University Hospital 99% of his recession-induced divorce, with had to cope with a number of trou- and Medical Center is $23.4 million headaches were over, he evidently allegations of bled loans.Sources said that the firm in arrears to the 1199 SEIU benefit still needs the Advil. infidelity and bought back one of its defaulted fund, leading the union to demand Like many other real estate drug use pro- loans on the Gramercy Park Hotel, a $6.1 million payment to restore firms, RFR has suffered during the viding weeks of which it owned with Mr. Schrager. benefits through June 30. downturn. The setbacks came after tabloid fodder. There was widespread specula- A hospital spokesman said that a 25-year run during which the two Messrs. Rosen tion that the hotel’s financial prob- Brookdale offered a $1.4 million founders—friends since kinder- and Fuchs lems had led to the splintering of payment in early May, but that was garten in Frankfurt—amassed an strained the that partnership. But in comments rejected as insufficient to cover the impressive U.S. collection of about partners’ rela- to the Times, Mr. Rosen blamed a costs of providing health benefits to 26 buildings, including the land- tionship fur- collision of strong personalities.Mr. 3,400 workers and their dependents. marked , catty-corner ther by voicing Schrager did not return a call for Management “has given no indi- from Seagram on Park Avenue. unflattering comment. cation to date that they intend to Mr. Fuchs is known as the more opinions about make any kind of payment to correct Seagram Building cerebral and detail-oriented. Mr. Ms. Seymour, Lever House Hotel site at risk this situation,” the fund said in a Rosen is RFR’s public face,a bon vi- and the three Additionally, lenders are fore- statement last week. vant whose parties and marriage to decided to end closing on a mortgage RFR held on A Brookdale spokesman ac- a socialite are chronicled in the gos- their arrange- Passion for art helped 610 Lexington Ave., a site where it knowledged that the hospital had sip pages,and whose Warhol-heavy ment after the cement Mr. Rosen’s had planned to build a high-rise lux- failed to make payments to the union art collection is celebrated in glossy couple unex- ury hotel. And looming tenant de- fund but emphasized that it cannot magazines. pectedly recon- relationship with Mr. partures mean difficulties for a loan make even a $4 million payment. ciled. on the firm’s office building at 980 “It’s not doable—there is no Loser takes 35% Neither Mr. Brant, a fellow collector Madison Ave. $6 million to hand to them,” the A passion for art helped cement Rosen nor Mr. Despite RFR’s problematic part- spokesman said. He added that the Mr. Rosen’s relationship with Mr. Fuchs would nerships, many in real estate contin- hospital’s deficit would be “in the Brant, a fellow Warhol collector. comment; Mr. ue to hold Messrs. Rosen and Fuchs tens of millions of dollars a year They met when each was trying to Brant did not in high regard. They point to the without making some changes.” buy the Seagram Building. In 2000, return a call many successes, including at least The union also called last week RFR outbid Mr. Brant, then turned seeking comment. lion for his share of the sale of 451 tripling the value of the Seagram for Brookdale’s chief executive and around and asked him for cash to Sources expect Mr. Brant to re- Lexington Ave., which fetched $29 Building by turning it into a show- board to resign, and asked the state close the deal in return for about a ceive between $100 million and million last year. Mr. Lis declined to case for modern art and the favorite to appoint a temporary receiver to 35% stake. $150 million when the sale is con- comment. address of high-end financial firms. put the hospital’s finances in order. Their relationship soured last cluded.That range is based on a val- Messrs. Rosen and Fuchs filed a “Aby’s very honest, very cre- CEO Bruce Flanz assumed the year. Mr. Brant’s newsprint busi- uation of about $1.1 billion for the countersuit charging that Mr. Lis’ ative,” said Mitchell Konsker, a vice top post in March after David Rosen ness, in which Messrs. Rosen and building and its debt. demands violate the terms of their chairman at Jones Lang LaSalle. was indicted on bribery charges. Fuchs were investors,filed for bank- A sale could take awhile, howev- partnership agreement, which al- “He’s a real visionary—look at what Brookdale is part of the nonprofit ruptcy. They demanded to be er. Sources say interested parties lows sale proceeds to fund other he did at the Seagram Building.” Ⅲ MediSys Health Network. Ⅲ

26 | Crain’s New York Business | May 30, 2011 20110530-NEWS--0027-NAT-CCI-CN_-- 5/27/2011 12:13 PM Page 1

43,800 private-sector jobs were added to the state economy in April BUSINESS LIVES Source: NYS Department of Labor

HOT JOBS MATERIAL ISSUE: Marty Odlin wanted to make his own bike but EXECUTIVE couldn’t afford a INBOX metal frame. Anne Fisher CFO/CLIENT MANAGER COMPANY BTQ Financial JOB DESCRIPTION Coordinate fis- Mastering the cal management for various non- profits, as a member of those cli- art of working ents’ executive management teams the room MOST IMPORTANT TASK Deliver high-quality financial reporting WE’VE PROBABLY all done it at and advisory services some point: emptied our pockets after a big networking event, CREDENTIALS NEEDED Minimum found a wad of business cards, seven years in financial account- and tried to recall, “Who were ing, consulting or related field; these people again? And why did minimum two years’ supervisory I think I wanted their cards?” experience; M.B.A. or M.P.A. Collecting that fistful of cards SALARY $120,000-$140,000 is a reflex for many hopeful networkers. But more deliberate RECRUITER Internal steps can yield better results. DOWNSIDE Working with a client “Lots of opportunities are base that has experienced a wasted at business gatherings, decline in funding because people don’t know how UPSIDE Providing cost-effective to turn a brief conversation into fiscal operations without sacrificing a relationship,” said Arlene Isaacs agencies’ social mission of Respectful Communications, whose coaching clients have BTQ Financial offers outsourced included Fortune 50 CEOs and services to meet the fiscal and ac- numerous entrepreneurs. counting needs of NYC nonprofits. Her prescription for effective —SUZANNE PANARA networking: Start with a clear idea of why you’re attending a gathering and what you hope to get out of it. If one of your goals EXECUTIVE MOVES is to introduce yourself to a luminary who’ll be there, research The Madison Square that person ahead of time. Garden Co.: Casey Coffman, 43, has been “Find some personal promoted to the connection,” she advised. Mention newly created position it when you meet. “That way, of senior vice you’ll stand out from the crowd.” president, corporate GOTHAM GIGS Particularly for introverts, strategy and working a room can be a lot of … development. In her new position, she will take a lead role in helping manage well, work. Jennefer Witter, head and expand the company’s corporate of Manhattan PR firm The initiatives. She was previously divisional Boreland Group Inc., has a word executive vice president, MSG Sports. Bamboo Bicyclist of advice: Keep at it anyway. Milk Street Cafe: Kathryn Cunningham, “Attend at least three or four 36, joined as director of catering sales networking events a month,” she for the Boston-based corporate catering After a bad experience with a pushy bicycle salesman four years urged. “It’s about perseverance. organization’s new Manhattan outpost. People She will be responsible for new business ago, Marty Odlin decided to build his own. Mr. Odlin, who was Great results don’t typically come development and corporate catering who can’t then a product designer for a Seattle ski company, couldn’t afford from a single meeting.” client retention. She was most recently metal, so he used bamboo; soon, his friends were suddenly all What if you’re still not making national sales director, wholesale use a enough of the right connections? division, for Hermès. asking for the customized bikes. ¶ Two and a half years ago, Mr. You can always do what Avi Marko Young Audiences New Odlin co-founded Bamboo Bike Studio in Red Hook, Brooklyn, and Eli Mechlovitz did: Launch York: Thomas hammer Heymann, 53, was which runs building workshops, sells DIY kits and helps construct your own networking group. named president and ‘ride out turnkey factories in developing countries. Bamboo Bike has a The co-founders of Brooklyn- executive director of based retailer KidsSocks.com the arts-based on a bike plant in Maine and a location in San Francisco; others will soon started ECommerce Vendors. organization that open in Toronto and Alabama. ¶ Mr. Odlin, 29, also teaches small Members meet once a month for works with New York they made’ dinner. In the four months since City public schools. He will raise the groups how to create their own durable, high-quality bamboo visibility of the organization and bikes.The price of the class and materials starts at $700, and some the informal club started, Mr. increase donor support. He was most of the 400-plus participants have traveled from as far away as Marko said, recommendations recently president of Sepsis Alliance. from the group have saved Food Network Magazine: Stephen Australia and Japan. ¶ “We’ve had people come in who don’t KidsSocks “hundreds of Bohlinger, 47, has been named associate know how to use a drill or a hammer,” said Mr. Odlin, a Maine thousands of dollars.” publisher of the Hearst Magazines and Food Network title. He was most native whose father is a commercial fisherman. “Two days later, WHAT NETWORKING TECHNIQUES have recently vice president/publisher of they’re riding out on a bike they made from scratch.” been most effective for you? Tell us at

See EXECUTIVE MOVES on Page 29 —miriam kreinin souccar buck ennis www.crainsnewyork.com/execinbox.

May 30, 2011 | Crain’s New York Business | 27 20110530-NEWS--0028-NAT-CCI-CN_-- 5/27/2011 12:59 PM Page 1

RÉSUMÉ REVIEW Maker of suite deals Is your job search all it could be? We ask the experts. Chief’s vision for You’ve never run a hotel company. What playing defense to playing offense. NAME KAREN J. BERG experience are you drawing on? That’s a pretty significant change. SUMMARY Morgans: more I’m a young CEO, but I have a Executive experienced in developing airline good understanding of who our cus- You just opened the Mondrian SoHo customer-service operations strategies of a hotel manager property. Does the company own that? tomer is because of my age. I also PROFESSIONAL EXPERIENCE went to Cornell University’s school We own less than 30% of the as- l KLM Royal Dutch Airlines, Amsterdam, of hotel management and spent time set, but we manage it. Having a ho- 2002-present BY LISA FICKENSCHER on Morgans’ board. We brought in tel downtown was critical.We think two senior executives from Marriott, this hip location brings us back to Vice president of sales, North America, Air France Industries KLM ince he became the chief ex- Dan Flannery and Yoav Gery. the cutting edge. It’s been a shot in Engineering & Maintenance, 2008-present ecutive of Morgans Hotel the arm for the company overall. Increased budgeted regional third-party B2B maintenance sales by 65% Group in March, Michael What’s your vision for the company? via four direct reports; led integration of multilocation subsidiary Gross has sold three of the We clearly have a vision to be- Will you open more hotels? Director, KLM fleet maintenance, KLM E&M, 2005-2008 five hotels it owned and come a management company. We Our focus is on new hotel open- Led aircraft modification and maintenance projects through five direct bought out the company’s restau- sold the Mondrian Los ings. Morgans is predominantly a reports; generated EUR 2 million revenue S l rant partner for $20 million. Angeles and have U.S. company,but we think there is Actinium B.V., Amsterdam, 2000-2001 The Long Island native,35,took agreements to sell the a huge upside for us to grow into Senior consultant the reins of Royalton and Mor- an international brand. We have Saved EUR 1 million for travel industry client in four months; established the boutique gans hotels in New two properties in London. [The 80-seat customer contact center hotel compa- York. We bought out company also manages properties EDUCATION ny—founded our partner, China Grill in Mexico and Puerto Rico.] MOVERS & l University of Minnesota, St. Paul, M.B.A. courses SHAKERS by legendary Management, because hotelier Ian we want to have Does running a hip hotel l Wartburg College, Waverly, Iowa, B.A. Schrager— control over our brand mesh with family l Fluent in English, Dutch, German and French Michael after serving food, beverage life? Résumé appears in condensed form. Gross on its board and nightlife.We I have twin girls, EXPERT ADVICE for nearly two recognize that is soon to be 4 years Delighting a recruiter or hiring manager with a compelling résumé is essential years and a critical part of old. My life is an helping to en- our DNA. It was interesting com- to a successful job search; Karen’s résumé has the potential to do so. Her gineer its turnaround. Morgans, a time to go in a bination of a accomplishments in leading cross-national teams for major airlines need to publicly traded company, had been new direction. young family at stand out more. She should highlight her global experience by including her struggling under heavy debt as well home with a job positions’ locations. Her multicultural experience, exceptional results and as a leadership vacuum. Has the company’s that is very much fluency in four languages will be highly marketable when made more explicit, This year, billionaire supermar- financial picture about travel and especially to growing Asian carriers focusing on U.S. and European markets. ket mogul Ron Burkle of The Yu- improved? nightlife. Let’s just —dick batten, director, Karp Resources caipa Cos. became Morgans’ largest We’ll have say my day job is a To contact this candidate or to be featured in “Résumé Review,” e-mail us stakeholder. He tapped Mr. Gross, no debt in contrast with coming at [email protected]. who had helped facilitate Yucaipa’s 2014. We’ve home to the family at initial 30% investment in 2009. gone from night. Ⅲ SOME OF US WOULD RATHER BE AT WORK. AND IT SHOWS.

Building upon its 25 year history as the most trusted name in New York business, Crain’s is giving readers the opportunity to tell us why their company is the best place to work. Nominations are now open for this annual New York City honor, recognizing outstanding

Does your company allow you to: • Work with a stellar group of people? • Do what you enjoy? • Explore new opportunities for growth? • Follow your own path?

Tell us why your company is so great by nominating it as one of New York City’s Best Places to Work at www.bestplacestoworkNYC.com

28 | Crain’s New York Business | May 30, 2011 20110530-NEWS--0029-NAT-CCI-CN_-- 5/27/2011 12:14 PM Page 1

account executive at Demand Media. equity business. He was previously chief New York State Society of Certified Public Douglas A. Ryder, 40, has joined the EXECUTIVE MOVES Caren Wachtenheim, 34, has joined as executive of Vertex Capital Manage- Accountants: Marc Engel, 54, was private equity practice group as a sales account executive. She had been ment, which he founded. appointed chairman of the consulting partner. He had been a partner and a Continued from Page 27 senior account executive at TotallyHer, a Jamie Weston, 46, joined as a managing services oversight committee. He had member of the transactions department Cooking Light. division of Gorilla Nation and Evolve director in its private equity business. been chairman of the litigation services at O’Melveny & Myers. Ruder Finn Inc.: Sabrina Guttman, 39, Media. He was previously a partner at the committee. STV: D. Kent Turner, 50, has joined the was appointed executive vice president Interbrand: Daniel Diez, 35, was Wicks Group of Companies. 7thOnline Inc.: Jerry architecture, engineering and planning and global head of technology and promoted to the newly created position Gardner Nelson & Partners Inc.: Kate Inman, 47, joined the firm as senior vice president. He will innovation, for the communications, of North American director of strategic Cusick, 36, was promoted to partner and retail services provider direct the buildings and facilities counseling and services agency. She marketing for the brand consultancy. He director of project management for the as chief marketing Eastern office in New York. He was joined from AxiCom North America, was formerly associate director of creative, media and digital agency. She officer, a newly created most recently vice president and director where she was general manager. marketing and public relations. had been a partner and project director. position. He had been of architecture for HNTB. RSM McGladrey Inc.: Joseph Decilveo, 57, Pipeline Trading: Hans Heidle, 41, joined Hank Kosinski, 43, joined as partner and global vice president Big Lead Sports: Brian LaRock, 47, was was named managing director of the the institutional electronic brokerage as executive creative director. He had been of iMANY Inc. named chief executive and chief assurance, tax and consulting services director, execution management consult- a creative director for McCann. Weil Gotshal & Manges: financial officer of the integrated provider and will lead the litigation ing. He had been vice president of GFI Insurance Services: Peter A. Hutton, 49, Harvey M. Eisenberg, 50, joined the marketing and media company. He will support practice in the New York office. research, financial engineering at ITG. was named president of the insurance private equity practice group as a partner. oversee all day-to-day operations, He was previously managing director at Spring Mountain Capital: Avi Faliks, 36, brokerage firm. He was most recently He had been a member of the investment financials and acquisitions. He had been LECG. joined the investment management firm executive vice president at The NIA funds and mergers and acquisitions chief financial officer of 5MinMedia. Lebenthal & Co.: Matthew Deane, 57, as a managing director in its private Group, a Marsh & McClennan Agency. practices at O’Melveny & Myers. —laura shin was appointed co-head of public finance, a newly created position, for the broker-dealer. He will oversee municipal bond banking relationships. He was formerly a managing director at Bank Hapoalim. Doremus: Alexandra Bissett, 33, was named account supervisor for the business communications firm. She was formerly an account supervisor at Agent16. Robinson & Cole: Kathleen M. Furey, 52, joined the law firm as a partner in the real estate group. She was most recently a partner at Edwards Angell Palmer & Dodge. Kevin C. George, 47, joined as counsel in the real estate group. He was most recently counsel at Edwards Angell Palmer & Dodge. A.C. Lawrence & Co.: Brian G. Bey, 48, was named senior vice president of the real estate brokerage firm. He was previously managing director of Prime Manhattan Realty. Francis Cauffman: Michael Bonomo, 34, You have a son in Paris, a mortgage was appointed director of corporate in New York and parents in Sydney. interior design for the architecture firm. He was formerly studio design director Can your money keep up? at Mancini Duffy. Chadbourne & Parke: Pamela Marple, 47, has 48ºN – Paris, France joined the law firm as a partner and will focus on financial When life takes you or your family across borders, your money should litigation and seamlessly follow. HSBC Premier can help you open HSBC deposit government enforcement actions accounts in 30 countries and territories from the U.S. and move money 1 and investigations. online between them—securely and without fees. You’re at home She was most recently a partner at abroad. Now the same can be said for your money. McDermott Will & Emery. Crowell & Moring: Paul J. Pollock, 50, Choose from a selection of welcome gifts, including a joined the law firm as a partner. He was MacBook Air, when you start an HSBC Premier relationship previously a partner at Katten Muchin before July 22, 2011 with a qualifying balance.2 Rosenman. Jun Group: Joe Gallagher, 47, joined the Stop by your nearest branch, call 866.375.6661, or visit social video company as chief revenue hsbcpremierusa.com/connect to see how you can start living officer, a newly created position. He had life without boundaries. been executive vice president, global sales at BBE. Freshfields Bruckhaus Deringer U.S.: Timothy P.Harkness, 46, was hired as a partner in the litigation practice at the law firm. He had been a partner at Kramer Levin Naftalis & Frankel. The Week Inc.: Stephen Acunto Jr., 35, has joined the news and opinion magazine and its website, TheWeek.com, as 1Global View, Global Transfers, and international account opening are not available in all countries. Foreign currency exchange rates may apply. account manager. He was previously vice 2Offer(s) valid when you begin a new personal Premier relationship* in the United States funded in new money from May 16, 2011 to July 22, 2011. With a minimum qualifying balance president, corporate sponsorships, for of $150,000, you qualify for the MacBook Air. Alternate gift available with a minimum qualifying balance of $100,000 or more. Offer(s) not valid for Insurance Products, which include HSM Americas. Annuities, or for existing HSBC Premier clients regardless of what other non-Premier Accounts they have or how they are listed on account titles; Online Savings Account is ineligible for TidalTV: Christa Rimonneau, 34, has gift promotion. New money is defined as funds or positions not previously held by any member of the HSBC Group over the past six consecutive months. For qualifying customers upgrading to Premier, new money must be in addition to existing deposit and investment balances as of the close of business on May 13, 2011 (“Existing Balances”). Premier relationship in the U.S. joined the video advertising company as must remain open; new money and Existing Balances must remain on deposit for a minimum of six months or the value of gift will be deducted from account proceeds if time requirement senior sales director, East Coast. has not been met. Previously, she was sales director at *To qualify for an HSBC Premier relationship, you need to open a Premier Checking account and maintain $100,000 in combined U.S. personal deposits, including Online Savings Account, Adconion Media Group. and investment balances. Business owners may use their commercial balances to qualify for a personal Premier relationship, but these balances cannot be used to meet the new money Brett Tabano, 32, has joined as director requirements. A monthly maintenance fee of $50.00 will be incurred if minimum balance requirements are not maintained. You have up to 90 days after account opening to meet the full $100,000 balance requirement. The Annual Percentage Yield (APY) and balance for a Premier Checking account which is accurate as of April 18, 2011 is 0.01% APY on balances of $5.00 or more. APY of sales strategy. He was previously an is variable and subject to change after opening. Charges and fees may reduce earnings. Qualified Premier clients will be notified via mail within 90 days of account opening; notification will include instructions for redeeming gift of choice. Eligibility requirements may apply for some gift choices. Limit one gift per eligible new Premier relationship. This offer cannot be combined EXECUTIVE PROMOTIONS with any other offers or promotions, is nontransferable, good while supplies last. Any gift not chosen by October 31, 2011 will be forfeited. The cost of the gift will be reported on IRS Form 1099. ® The fastest way to get an announcement into Apple , the Apple Logo and MacBook Air are registered trademarks of Apple Inc. All rights reserved. Apple is not a participant in or sponsor of this promotion. Crain’s is to submit online. Fill out the form United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their U.S. and non-U.S. accounts – including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts (“FBAR”)). U.S. persons should consult a tax adviser for more information. at www.crainsnewyork.com/section/ executive_moves. The Executive Moves column Deposit products offered in the U.S. by HSBC Bank USA, N.A. Member FDIC. ©2011 HSBC Bank USA, N.A. is also available online.

May 30, 2011 | Crain’s New York Business | 29 20110530-NEWS--0030-NAT-CCI-CN_-- 5/27/2011 12:59 PM Page 1 chemex / INSATIABLE CRITIC Gael Greene BUSINESS NETWORKING 101: POWER flickr.com THE PITCHING SECRETS. The networking reception will take place from 6:15 p.m. to 8:00 p.m. at the , 420 Lexington Ave., New York Life WEEK offices. The fee is $15 with advance The Dutch: registration and $20 at the door, and includes refreshments. To get more AHEAD information and to register, visit www.meetup.com/NY-Smart-Business- treat in SoHo JUNE 6-12 Networking/events/18553381. WORKSHOPS SATURDAY, JUNE 11 CONFERENCES Blogger Robin Horton and facilitator New ‘joint’ knows AND SEMINARS James Navé host a workshop on MONDAY, JUNE 6 CREATIVE BLOG WRITING. The workshop American regional STERLING NATIONAL BANK presents a will take place at the Lounge at North complimentary CPE and CLE seminar, Square, 103 Waverly Place, from 9:30 food; book in advance offering two credits for attorneys and a.m. to 4:30 p.m. Tickets are $247 and accountants. Presenters Melissa include a blogger’s tool kit and lunch WHAT SHE’S ur tight little foursome Gillespie and Bryan Skarlatos will during the workshop. To register, visit has found a window discuss topics related to foreign bank www.theblogworkshops.com/registration. READING of calm in the clubby and financial accounts regulations.The For more information, call back room at The free event will take place from 8 a.m. to (203) 698-2630 or e-mail HELENA ROSE DURST is a vice O 10:30 a.m. at the bank, 650 Fifth Ave., [email protected]. Dutch.I suspect chef- president of The Durst fourth floor. Registration is required, partner Andrew Carmellini’s new CULTURAL EVENTS Organization and a member of buck ennis and breakfast will be served.To register, SoHo joint is probably the most be- DRIVES YOU WILD: Veal pizzaiola call (212) 935-4163 or e-mail MONDAY, JUNE 6 one of New York’s real estate sieged spot in town right now. Set- [email protected]. The Public Theater kicks off a dynasties. tled into a status booth—I had a For more information, visit summertime tradition, SHAKESPEARE IN When she’s not working the number to call, I must confess— THE DUTCH www.sterlingnationalbank.com. THE PARK, with a performance of room or the office, Ms. Durst is we’ve sliced each other a chunk of the 131 Sullivan St. Measure for Measure at the Delacorte working the land at her family’s cakey cornbread spiked with chile (212) UESDAY, JN677-6200 T 7 Theater in Central Park at 8 p.m. The McEnroe Organic Farm in The NYC Department of Small free performances continue until July and scallions, still warm from the www.thedutchnyc.com Millerton, N.Y., where she started oven, a prologue of riches to come. Business Services invites you to 30 and will also feature All’s Well That FRANCHISING 101: ARE YOU READY TO Ends Well in repertory. For information, an educational program that I am quickly swooning over a tiny FRANCHISE YOUR EXISTING BUSINESS? visit www.shakespeareinthepark.org/ partners with local schools to oyster sandwich.The fat, briny, del- CUISINE American Attendees will explore topics including about.aspx. provide internships in organic icately fried bivalve, as full and soft the importance of branding before agriculture. PRICE RANGE Entrées $18 to and voluptuous as Angelina Jolie’s expansion. The free seminar will takeTURDAY, JNE1 SA , 1 Ms. Durst’s current reading lips,sports an ooze of mustardy pick- $48 place from 8:30 a.m. to 10 a.m. at the AND SUNDAY, JUNE 12 MetLife building, 260 Madison Ave., BIG APPLE BARBECUE BLOCK PARTY includes Malcolm Gladwell’s led okra rémoulade. All of us are SERVING Lunch, dinner What the Dog Saw: And Other oohing and ahhing over this $5 thrill. 11th floor. For a list of topics and to returns for a weekend of food, music Adventures, a collection of his It’s my second visit. I told myself RESERVATIONS Recommended register, visit www.manhattancc.org. For and festivities.The party takes place more information, call (212) 391-9500 from 11 a.m. to 6 p.m. both days at essays for The New Yorker. that I needed to taste more to be cer- NOISE LEVEL Raucous up front, or e-mail [email protected]. Madison Square Park, Madison Avenue tain that Carmellini, with partners The book provides “deeper sustainable in rear between East 23rd and East 26th insight into the socioeconomic Josh Pickard and Luke Ostrom—so UESDAY, JN T 7 streets. For a list of pit masters and impact of marketing, which is good in Italian at A Voce and Locan- I can’t wait to return. NEW YORK PUBLIC LIBRARY invites you to event details, visit www.bigapplebbq.org. da Verde—is just as inspired re- I will definitely go back. learn how to find the right college and —suzanne panara important to me,” Ms. Durst remarked. thinking American regional classics. I’ll let them simmer awhile. pay for it with Allan Katz. The free And that I hadn’t been lulled by the lecture will take place at the Science, To view Crain’s classified events listings, —VALERIE BLOCK NO HATS Never again. go to www.crainsnewyork.com/events measured laid-back feel of bare ta- Industry and Business Library, 188 bles, padded booths, half-curtained Madison Ave., from 6 p.m. to 7 p.m. For information, visit www.nypl.org. windows and the march of red-and- I’m wild for the genius gentrifi- black metal light shades in the Ro- cation of old-fashioned veal piz- WEDNESDAY, JUNE 8 man and Williams design. zaiola: pancetta-ribboned slices of FINANCIAL WOMEN’S ASSOCIATION It really was the mounting sur- veal porterhouse paired with veal presents “The Ability to Improvise prise and pleasure in what we ate: cheeks, fried artichokes and sweet While Communicating,” a seminar on smoked ricotta ravioli napped with peppers and topped with clots of eliminating communication obstacles. tomato sauce.Hefty Asian-flavored garlicky smashed San Marzano Acting coach Anthony Vincent Bova ribs, tender and chewy, sweet and tomatoes and olives. will present techniques to improve communication skills.The event will run spicy.The satiny mouth feel and ag- It would be wanton to resist from 5:45 p.m. to 8 p.m. at the Times gressive flavoring of the grilled flank desserts here. Carmellini worked Square Arts Center, 300 W. 43rd St., steak with fresh greens and a tingle of with pastry chef Kieran Baldwin to suite 504. Registration is required by horseradish on smoked potatoes. get the same inventive edge and ex- June 6 through www.fwa.org.The cost Oddly satisfying lamb neck mole, uberance he’s given the savories. is $40 for members and $50 for melting with fat,served in a sauté pan. The pie, which changes daily, is nonmembers. For more information, call Most portions here are old-fash- rhubarb again—last time,it was for- (212) 620-0414 or visit www.fwa.org/ ioned American:big enough to share. tified with apple.Now with rhubarb event/2011_0608_ent_ips.htm. A ceviche of clams, mussels and in full season, it’s full-force rhubarb THURSDAY, JUNE 9 squid with champagne mango, lime with rhubarb jam,scattered candied Graffiti PR invites you to PR SUMMIT and red onion, almost a soup in fact, kumquats and buttermilk-lime CONFERENCE 2011. Panel discussions is enough for all four of us to taste,as sherbet. will explore how business and public is the New Jersey asparagus—pen- Don’t let the name lead you to ex- relations organizations can create PICK OF THE WEEK cil-thin and green,correctly cooked, pect Netherlands Bitterballen. It impactful campaigns. The event will though its kaffir curry puddle with was the sound of the words that take place from 9 a.m. to 8 p.m. at the CITY PARKS FOUNDATION celebrates the opening week of peanuts, mint and basil would be a Carmellini responded to more than New York Hilton, 1335 Sixth Ave. SummerStage, a free summerlong performing arts festival. reach in New Jersey. A splash of the discovery that these blocks were Tickets are $175 for the general public, spicy Bloody Mary sauce gives once Dutch farmland.“The Dutch” $75 for students and $200 at the door. Saturday night’s Central Park main-stage performance Breakfast and lunch will be served, and shredded crab surprising oomph. had an old-time New York feel, a cocktail and networking reception features the Blue Note Jazz Festival, which kicks off at I’m surprised that I’m not “Damon Runyonesque,” he said. “It will be held. For more information, visit 6:30 p.m. at Rumsey Playfield. For a complete list of knocked out by the legendary fried sounds like a joint.” And that’s what www.prsummit.org. chicken special of Monday nights at it feels like, too: a joint with a canny SummerStage performances and program descriptions, Locanda. I’m put off by a too-sharp interior decorator. You can dress up NETWORKING RECEPTIONS visit www.summerstage.org. buttermilk brine and the honey but- or dress down—but I can’t predict THURSDAY, JUNE 9 ter slick on top of the made-to-order how far ahead you’ll have to book to Join organizer Aditi Gautam for biscuits.But barely gelled sea scallops get an 8 o’clock table.  are marvelous in a citrusy swirl of MON. TUES. WED. THURS. FRI. SAT. SUN. spring onions, peas, haricots verts, Copyright © 2011 by Gael Greene. 6.6 6.7 6.8 6.9 6.10 6.11 6.12 favas and Texas bulb onion. Syndicated by www.insatiable-critic.com.

30 | Crain’s New York Business | May 30, 2011 20110530-NEWS--0031-NAT-CCI-CN_-- 5/27/2011 5:18 PM Page 1

THE CHEAT SHEET Last week, the Port WEEK Authority of New York & New Jersey and Condé ON THE Nast Publications signed a 25-year lease for 1 million square feet at 1 World WEB Trade Center. The MAY 23-27 publisher of Vogue, Vanity Fair and other R INSEW ORK.CMC A Y fashionable media brands will occupy 21 floors in the 1,776-foot tower, the Martha’s (tasteful) signature of

‘For sale’ sign the rebuilt Sept. 11 site. buck ennis ven DIY craft maven WHAT’S THE BIG DEAL? Condé Nast has a reputation for creating buzz— Martha Stewart and spurring development—when its legions of designer-dudded workers move to a nontraditional location. After the company chose Eknows when she then-still-gritty as its headquarters, other big companies needs help. On Wednesday, followed. Downtown’s office market could use that kind of ripple effect. bloomberg news her limping Martha Stewart HOW MUCH IS CONDÉ NAST PAYING? Sources said it will pay an average Living Omnimedia announced that it had hired Blackstone Advisory Partners to evaluate its of $60 a square foot for the first 10 years.That’s a bargain, even before a options, including a possible sale of the company. raft of government incentives for companies moving downtown. The news sent MSLO shares soaring nearly 30%—to all of $5 each.The value of Ms. ANY OTHER TENANTS YET? China’s Vantone Industrial Co. signed a lease Stewart’s famed franchise, nearly $2 billion back in early 2005, was a mere $250 million after for nearly 191,000 square feet, which could make for some interesting the day’s trading. elevator moments with the Condé Nast crowd. It’s been a hard few years for the media and home decor franchise. Magazine ad dollars HOW IS THE CONSTRUCTION FARING? The tower was at 66 stories last dried up; a merchandising deal with Kmart wasn’t renewed. In January, NBC dropped Ms. week and should reach its full 104 stories by early next year. It’s slated to Stewart’s morning television show and its related spinoffs, relegating them to Hallmark be completed by 2013 and ready for the Condé Nast move-in by 2014. Channel oblivion.The company’s CEO position has been vacant since 2008; Lisa Gersh, a WHAT ABOUT THE REST OF THE SITE? The Sept. 11 memorial will be founder of Oxygen Media, is slated to assume the post June 6. ready for visitors by the 10th anniversary of the attacks, and the museum should be open a year later. Another office tower, developed by Larry The company’s announcement came just as 69-year-old Ms. Stewart, who has had the job Silverstein, should be finished by 2013, while a third is set for 2015.The title of chief editorial officer the past few years, is set to rejoin its board of directors, ending a Santiago Calatrava-designed transit hub has a late-2014 completion date. five-year banishment due to her 2004 federal conviction for obstruction of justice. —theresa agovino

TAX-SQUEEZED SUBURBANITES, REJOICE: Gov. Andrew Cuomo and state leaders agreed to impose a 2% limit on annual property tax increases statewide.The guv says property taxes soared 5.5% per year between 1999 and 2009, and the new cap aims to combat economic decline. Still, the state teachers union said limiting tax increases would devastate low-income schools outside of New York City. Legislators seem set to vote on the cap Join the next month. … HEDGE FUNDER DAVID EINHORN BET $200 MILLION ON THE METS, buying a minority stake in the financially strapped team. Whether that’s enough to buy a championship, or even downplay owner Fred Wilpon’s recent tongue-lashing, remains to be seen. … THE HUFFINGTON Crain’s POST IS NOT OFF THE HOOK, YET. A federal judge declined to throw out a lawsuit claiming the media company’s founders, Arianna Huffington and Kenneth Lerer, stole the idea for the online news site from a duo of Community Democratic political consultants—a charge AOL Huffington Post Media Group said is “pure fantasy.” … THE FEDS ARRESTED GERARD DENAULT, the lead manager on the controversial CityTime project, and charged him with Subscribe to Crain’s New York Business receiving $5.6 million in kickbacks from a technology subcontractor. Mr. Denault, who oversaw the rollout of the computerized timekeeping system New York’s must-read resource for business leaders for more than 100,000 municipal workers, could not be reached for comment. His employer, Virginia-based SAIC, has not been charged with wrongdoing. … TWO MASSIVE, LONG-VACANT BROOKLYN PROPERTIES WERE FINALLY CLEARED for redevelopment. A judge rejected a community One year subscription $29.95 group’s lawsuit and green-lighted a $2 billion redo for the former Domino Weekly news analysis of New York’s most Sugar factory in Williamsburg.The city is now free to rezone the 11-acre important business issues site for a mixed-use residential project. And in Sunset Park, a 1.1 million- Print Edition acre warehouse shut since 2000 gets its own shot at redemption: The city’s In-depth reports and trend stories Economic Development Corp. tapped Salmar Properties to redevelop the Crain’s annual Book of Lists charmingly named Federal Building #2 for light industrial use. —benjamin j. spencer One year subscription $24.95 HOORAY! OY VEY! Anytime access to comprehensive and late breaking business news LEGENDARY Digital Edition CELEB HANGOUT Crain’s Daily Alert delivered to your and drunken-writer inbox each business day haunt Elaine’s is

buck ennis shuttered less than FREE unlimited access to Crain’s archives FINALLY, CON ED is the one to fork over six months after cash. The utility cut a $557,000 thank-you Elaine Kaufman’s check to Rockefeller Group for greening a passing. Subscribe today Go to www.crainsnewyork.com/subscribe tower. newscom

May 30, 2011 | Crain’s New York Business | 31 Project7:fp template.qxd 5/17/11 2:51 PM Page 1