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MEET THE THE LIST AHOY VEY! ASSEMBLYWOMAN Largest BROOKLYN ON CABS EXPECTED Construction CRUISE • Hard-hit credit union foreclosing TO TAKE ON Firms TERMINAL on medallions PAGE 14 DE BLASIO P. 11 WOES • Uber’s disruptive reach PAGE 15 P. 8 P. 19 • Hailing a bailout PAGE 16

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P001_CN_20170710.indd 1 7/7/2017 5:59:49 PM JULY 10 - 23, 2017 CRAINSNEW YORK BUSINESS

FROM THE NEWSROOM | JEREMY SMERD | EDITOR IN THIS ISSUE

United waits for takeoff 4 IN CASE YOU MISSED IT Why a single council member 5 TECHNOLOGY can crush a UNITED AIRLINES CEO OSCAR MUNOZ regrets not listening building project 6 INSTANT EXPERT to his gut back in April, when he got word that authorities had dragged passenger David Dao off a flight in Chicago. 7 TRANSPORTATION The incident made United look ghoulish, and Munoz’s ini- 8 ASKED & ANSWERED tial response, saying Dao was being belligerent, was, admit- 9 REAL ESTATE tedly, foolish. “One of my biggest personality traits is trust- 10 VIEWPOINTS ing my instincts,” he said. “And I didn’t in that instance.” 11 THE LIST Munoz course-corrected and apologized. “It’s never too late to do the right thing,” he said during a FEATURES visit to the Crain’s newsroom two weeks ago. 14 UBER’S IMPACT These days Munoz’s gut tells him that United needs to We’re a little 19 SHIPWRECKED IN BROOKLYN raise its profile in the lucrative New York market. That’s defensive about one reason the airline is looking to hire an executive in “ people moving into New York to lead that charge. But United has some catch- P. 8 ing up to do. Two years ago it pulled its operations out our house without NICOLE of John F. Kennedy International Airport. By selling its having to pay MALLIOTAKIS slots to Delta, the airline cut itself off from the many New Yorkers who refuse to fly out of Newark, where United anything has a hub, or who avoid LaGuardia, where United has some routes. That withdrawal happened a few months before Munoz came aboard as CEO, in September 2015. Had it been up to him, he said, he would not have backed out. Committed to Newark, United now wants to convince New Yorkers that the air- 28 GOTHAM GIGS port is not as hard to get to as they might think and the $2 billion the airline spent 29 SNAPS on terminal upgrades has made it a more pleasant place. 30 FOR THE RECORD Then there are the delays that plague all three area airports. Munoz says recent 31 PHOTO FINISH changes by the feds have made things worse. In October the Federal Aviation Ad- ministration opened Newark’s gates to more airlines that wanted access to the met- CORRECTIONS ro area’s 20 million residents. The FAA’s move cut into United’s dominance at New- Updated 50 Most Powerful Women profiles for Lynda Clarizio, Barbara Desoer and MaryAnne Gilmartin ark and ruffled the airline’s feathers. appear at CrainsNewYork.com. “We built the place,” Munoz said, “and we’re a little defensive about people moving into our house without having to pay anything.” The rush of carriers into Newark has led to cheaper fares for some routes but has coincided with an increase in delays. Federal data shows on-time departures in April dropped to 68% from 81% a year earlier. United blames the delays on the slot changes. A Port Authority aviation manager attributed the holdups to runway repairs at JFK and bad weather. In the past United ceded profitable time slots to avoid delays so fliers at its hub could make their connections. Doing so helped oth- ON THE COVER er carriers. But those days are over. Munoz’s gut is now telling him to fight for his PHOTO: BUCK ENNIS territory. “This is going to get less collaborative as we go forward,” he said.

DIGITAL DISPATCHES CONFERENCE CALLOUT SEPTEMBER 19 Go to CrainsNewYork.com CRAIN’S READ Crain’s takes a look BREAKFAST FORUM at New York’s changing Join us for our arts and culture music industry. To read our > forum, which serves to kick off ongoing series, check out the fall season for the CrainsNewYork.com/music. organizations that bring ■ ICYMI We unveiled the New Yorkers—and the world— 50 Most Powerful Women in the highest forms of New York on June 26. To view human expression. the biennial ranking, visit NEW YORK CrainsNewYork.com/powerfulwomen. ATHLETIC CLUB ■ SUBMIT Do you know a whiz kid? 8 to 9:30 a.m. On Nov. 27 our 20 Under 20 list will [email protected] recognize the New York area’s youngest business brains. Let us know Vol. XXXIII, Nos. 28, 29, July 10, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for who you think should be included at double issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 18, by Crain Communications Inc., 685 Third CrainsNewYork.com/20nominate. To get to Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address know our past honorees, head to changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. CrainsNewYork.com/20under20. (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. BUCK ENNIS, ISTOCK

2 | CRAIN’S NEW YORK BUSINESS | July 10, 2017

P002_CN_20170710.indd 2 7/7/2017 6:00:21 PM WHAT’S NEW July 10, 2017

AGENDANo cause for confusion about where the transit buck stops

f only the Metropolitan Transportation Authority had a nickel for every finger pointed about the transit system’s problems. Blame is being cast in every direction—at Gov. Andrew Cuomo, Mayor Bill de Blasio, state legislators, MTA executives, Amtrak and others. IIt’s easy to see why. Only 66% of subways complete their routes on time, down from 86% five years ago. Subway cars, some of which date back to the LOOK! A SHINY 1960s, are going only 68% as far before breaking down as they did in Janu- OBJECT! The ary 2012. In May alone, 197 Long Island Rail Road trains were canceled, a governor tries to distract nearly fourfold increase over that same month last year, and 1,590 were de- New Yorkers layed, up from 723. On top of these infuriating inconveniences, there have from his transit failures. been several harrowing incidents, including panicked riders attempting to claw their way out of a stalled F train and an A-train derailment caused by human error. have freed up money for maintenance. He has pledged billions more cap- Let’s get one thing straight: Cuomo controls the MTA, which runs city ital dollars than he’s delivered and brazenly diverted some that were in- subways and buses, the LIRR and Metro-North. True, his appointees cast tended to alleviate delays. He launched a bizarre contest to solicit ideas only six of the MTA board’s 14 votes, but the agency does everything that on speeding delivery of new subway cars, knowing full well that they are he wants and nothing that he doesn’t. His recent comments to the con- ordered from upstate plants in a political quid pro quo to get state Sen- trary were disingenuous and misled the ate support for the MTA capital budget. And public. And his unsuccessful attempt to gain Cuomo appointees cast only six of 14 he neglects to pursue tolling as a transit- two more appointments would not have funding tool that would have the ancillary made one more train run on time. Cuomo board votes, but the MTA does all he benefits of easing traffic congestion and- im is correct that Amtrak did not adequately wants and nothing he doesn’t proving air quality in city neighborhoods. maintain Penn Station’s tracks, leading to (See Mitchell L. Moss’s op-ed on page 10 for emergency repairs that will plague thou- other funding ideas.) sands of LIRR riders all summer. But he harps on it only to distract people Of course it would be preferable if mass transit got all it needed from from his MTA failures, which affect millions of straphangers. designated, untouchable funding streams rather than having to rely on The governor’s other responses to the transit system’s troubles have also state politicians for 42% of its operating budget and a big chunk of capital been unsatisfactory. He settled transit workers’ contracts early in his ten- spending. But until that happens, the politicians must do what is needed ure without work-rule changes long sought by MTA executives that would and be held accountable when they do not. — THE EDITORS

FINE PRINT The city is citing an obscure clause in the 1961 building code that would deny office tenants access to the outdoor terraces planned for many in-development towers. The rule says that “all uses must be contained within enclosed buildings.” Furious developers insist that a rogue inspector has been misinterpreting the passage in defiance of logic and precedent.

BY GERALD SCHIFMAN STATS

THE CITY'S ADMITTEDLY imperfect count of homeless people on the street—composed 25 WORDS OR LESS MAN ON THE STREET almost entirely of adults—shows their

numbers have risen. But the city appears AND THE CIT to be doing much better in recent years at getting homeless adults into shelters. It was incumbent “upon me as the PERCENTAGE OF HOMELESS ADULTS ON THE STREET leader of the city … to 20% Y say, ‘We aren’t going 15% Rise in the number of homeless to be intimidated by % people on the street from 9.1% 39 2016 to 2017 10% President Trump.’ ” 5% — Mayor Bill de Blasio, defending his Percentage of street controversial decision to attend the % homeless who are at least 99.9 18 years old 0% G20 Summit in Hamburg, Germany 2005 2009 2013 2017

FLICKR, BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY. SOURCES: NYC Department of Homeless Services, Coalition for the Homeless, U.S. Department of Housing and Urban Development, Crain’s research

July 10, 2017 | CRAIN’S NEW YORK BUSINESS | 3 AGENDA ICYMI CRAINSNEW YORK BUSINESS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701 EDITORIAL City’s banks see Trump editor Jeremy Smerd managing editor Brendan O’Connor assistant managing editors Erik Engquist, bump begin to flatten Jeanhee Kim, Robin D. Schatz web editor Amanda Fung ALL STREET FIGURED TO BE copy desk chief Telisha Bryan one of the big- art director Carolyn McClain gest beneficiaries of Donald Trump’s presidency, photographer Buck Ennis senior reporters Joe Anuta, Aaron Elstein, as investors bet that banks would thrive under Matthew Flamm, Daniel Geiger W reporters Jonathan LaMantia, Caroline Lewis the administration’s lighter regulatory touch, lower tax- data reporter Gerald Schifman es and overall pro-business approach. Bank stocks’ post web producer Peter D’Amato LOSS OF editorial intern Alexandra Semenova election rally was led by Goldman Sachs, which counts CONFIDENCE: columnist Greg David Investors may contributing editors Tom Acitelli, several alumni as administration officials. But so far this Theresa Agovino, Erik Ipsen, Cara S. Trager be doubting year, business on Wall Street has been fairly sluggish, and how much ADVERTISING several big banks are expected to report disappointing Trump will www.crainsnewyork.com/advertise get through advertising director Irene Bar-Am, quarterly earnings in the coming weeks. Congress. 212.210.0133, [email protected] senior account managers After a good start to the year, global investment- Lauren Black, Zita Doktor, Rob Pierce, Stuart Smilowitz, Debora Stein banking revenue declined by 7% during the second quar- senior marketing coordinator Glenn Schorr Charles Fontanilla, 212.210.0145 ter, according to Evercore ISI analyst , who [email protected] recently cut earnings forecasts for Citigroup, Goldman, JPMorgan Chase and Morgan Stanley. Revenue from the sales coordinator Devin Arroyo, 212.210.0701, [email protected] superlucrative business of advising corporations on mergers fell, and bond sales showed double-digit declines. ONLINE Some of the drop reflects investors losing confidence in Trump’s ability to get tax cuts through Congress. Brexit general manager Rosemary Maggiore, 212.210.0237, and North Korea’s nuclear program are also factors. [email protected] CUSTOM CONTENT For New York, a down year on Wall Street could lead banks to shed staff after adding workers here for three con- director of custom content secutive years. A decline in this highly paid workforce would be painful for the city, which relies on the securities Patty Oppenheimer, 212.210.0711, [email protected] industry for better than a fifth of all wages paid. multicultural sales manager Giovanni Perla, [email protected] There is a silver lining for the banks: As memories of the financial crisis fade, their standing among the public is senior custom marketing manager the strongest it has been in years, according to a Reputation Institute study. Interestingly, the best-regarded local in- Sonia David, [email protected] custom project manager Danielle Brody, stitution is Bank of New York Mellon, whose primary business is safekeeping securities and processing transactions [email protected] EVENTS for the rest of Wall Street. Banks with a heavy retail presence, such as Bank of America, are less well thought of. The www.crainsnewyork.com/events lesson may be that if you’re a bank that wants to be liked by people, don’t deal with them. — AARON ELSTEIN director of conferences & events Courtney Williams, 212.210.0257, [email protected] manager of conferences & events Adrienne Yee, [email protected] Due credit? DATA POINT Parking violation events coordinator Ashlee Schuppius, Insurance giant Aetna is moving its The Department of Consumer Affairs [email protected] PATH TRAINS ARE ON PACE TO SET A headquarters and 250 employees from put the brakes on Icon Parking and AUDIENCE DEVELOPMENT director of audience & content Hartford, Conn., to the Meatpacking RIDERSHIP RECORD OF 80 MILLION Quik Park garages’ practice of charging partnership development Michael O’Connor, District. State tax credits of $24 million monthly customers a $30 “NYC 212.210.0738, PASSENGERS THIS YEAR. PORT [email protected] plus $9.6 million in sales- and proper- living-wage assessment.” The settle- AUTHORITY OFFICIALS CREDIT THE REPRINTS ty-tax relief from the city’s Economic ment requires Citizens Icon Holdings, reprint account executive Lauren Melesio, Development Corp. sealed the deal. RAIL LINE’S NEARLY 98% ON-TIME the parking-chains’ parent company, 212.210.0707 to pay a $100,000 fine and refund $1.2 PRODUCTION Back to schools PERFORMANCE. production and pre-press director million to 22,000 customers. Simone Pryce The mayor will retain control of the media services manager Nicole Spell city’s public schools for two more years. Great white way? SUBSCRIPTION CUSTOMER SERVICE State approval of the extension came Cold comfort An Actors’ Equity study found that www.crainsnewyork.com/subscribe [email protected] during a special session called by Gov. After two years of freezes, the city’s African-Americans scored 11% of the 877.824.9379 (in the U.S. and Canada). Andrew Cuomo one week after legis- Rent Guidelines Board is raising rates principal roles in Broadway plays and $3.00 a copy for the print edition; or $99.95 lators adjourned for the year with no on the 1 million apartments it reg- 9% in musicals between 2013 and 2015. one year, $179.95 two years, for print subscriptions with digital access. agreement. ulates. One-year leases will increase to contact the newsroom: 1.25% and two-year leases 2%—hikes www.crainsnewyork.com/staff Don’t sell him short that many affected landlords argue are 685 Third Ave., New York, NY 10017-4024 phone: 212.210.0100; fax: 212.210.0799 Controversial hedge-fund billionaire insufficient. Entire contents ©copyright 2017 Steve Cohen and his wife, Alexandra, Crain Communications Inc. All rights donated $50 million to the Museum of Uncle Sam’s new address reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license Modern Art, one of the largest dona- A federal jury awarded the remaining agreement. tions in the institution’s history. MoMA 60% ownership stake of 650 Fifth Ave. CRAIN COMMUNICATIONS INC. plans to use the money for renovations to the U.S. government after ruling that BOARD OF DIRECTORS and exhibition space, and rename its the 36-story office building was con- chairman Keith E. Crain president Rance Crain largest gallery in honor of the Cohens. trolled by Iran in violation of federal treasurer Mary Kay Crain, Cindi Crain sanctions. The $800 million building senior executive vp, William Morrow Rejected will be sold, with the proceeds going to executive vp, director of strategic operations Chris Crain Knicks owner James Dolan fired team victims of Iran-linked terrorism. executive vp, director of corporate President Phil Jackson three years into Family ties operations K.C. Crain Grand getaway The estates of Bernie Madoff’s senior vp, group publisher David Klein his five-year, $60 million contract. vp/production, manufacturing David Kamis Jackson’s tenure was fraught with baf- Amtrak trains that normally run from late sons reached a deal with the chief financial officer Bob Recchia fling personnel decisions and the alien- Penn Station to Niagara Falls have be- Justice Department to return more chief information officer Anthony DiPonio ation of Knicks stars Carmelo Anthony gun boarding at Grand Central Ter- than $23 million to victims of their founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996] and Kristaps Porzingis. The team had minal. The Empire State line shift was father’s Ponzi scheme. A Manhat- secretary Merrilee Crain [1942-2012] an 80-166 record under Jackson, who made to help facilitate track repairs at tan federal judge will rule on it later won 13 NBA championships as a player Penn Station, which are set to begin this month.

GETTY IMAGES, BLOOMBERG and a coach. this week.

4 | CRAIN’S NEW YORK BUSINESS | July 10, 2017

P004_CN_20170710.indd 4 7/7/2017 6:00:53 PM AGENDA TECHNOLOGY

Invitation to Prequalify and to Bid: Updated Notice Rehabilitation and Flood Mitigation of the New York Aquarium, Brooklyn, NY

Pole position: Cell carriers Turner Construction Company, an EEO Employer, is currently soliciting bids for the Rehabilitation and Flood Mitigation of the New York Aquarium from subcontractors and vendors for the following bid fight for space on streetlamps packages: BP # 29A Installation of Power, and Building and Theatrical Lighting. (Bid, Payment & Key to lucrative market and upcoming 5G service BY MATTHEW FLAMM Performance Bonds Required) BP #13A Supply and Installation of Drywall, Rough Carpentry and Installation Only of Doors, Frames and Hardware. (Bid, Payment & Performance Bond Required) ew elements of New York architecture are less distinguished than BP #13B Supply Only of Doors, Frames and Hardware. its streetlamps. But unbeknownst Only bids responsive to the entire scope of work will be considered and, to be successful, bidders must to many who walk beneath them, be prequalified by Turner. The construction schedule is expected to last 24 months starting in the 4th Fthose humble, city-owned stanchions offer quarter of 2017. Certified M/WBE and Small Business (13 CFR part 121) companies are encouraged to submit. real estate that rivals private parking spots PRIME LOCATION: in value. Companies In order to receive the bid packages, potential bidders must submit a complete Subcontractor/Vendor want to attach Prequalification Statement. Prior prequalification submissions that remain current will be considered as A handful of telecom companies that more antennas previously submitted or may be updated at this time. All bidders must prequalify by the bid deadline by specialize in hardware deployment and to lamp posts. August 15, 2017 and submission of a Prequalification Statement not later than July 31, 2017 is strongly have franchise deals with the city covet the encouraged. All bidders must have an acceptable EMR, and will be subject to government regulations such as 44 CFR and federal Executive Order 11246. Successful bidders will be required to use LCP Tracker poles and wait all year to bid for them. At compliance verification software. Note that while this is a New York City prevailing wage project, union the moment, some of those companies and affiliation is not required. their cellphone-carrier partners are partic- To obtain further information about contracting opportunities and/or the prequalification package and ularly impatient. bid solicitation package/s, please contact Kahli Yaba-Baker ([email protected] or 212-629-6000.) The telecom players have gone back The new due date for prequalification and for submission of bid(s) is August 15, 2017. All bids will be and forth with the de Blasio administra- publicly opened at office of the Purchasing Department, Bronx Zoo, 2300 Southern Boulevard, Bronx tion for months about when they will next New York, on August 17, 2017 at 11 am. get a chance to attach small cellular radio antennas to light poles citywide. Desper- ate for steady and predictable access to the poles, they have grown frustrated and even alarmed by what they perceive as the city’s lack of urgency. The reason: Unlimited data plans and to secure assets. You have no other option the rise of video streaming have put intense if they don’t open the reservation period.” pressure on carriers to increase wireless The agency changed its mind in late June, capacity. Putting the suitcase-size cell nodes saying a new phase would open within a few on streetlamps—and close to customers— months, and the industry breathed a sigh of can allow more efficient use of spectrum relief. Yet some franchisees remain uneasy. than cell towers or rooftop antennas. Better As one pointed out, they still don’t know service equals more customers. exactly when the new phase will begin. Looking ahead in the competition for “In the past the city has been very this lucrative market, those cell nodes can accommodating,” Weiner said. “We’re anx- hold spots on the poles where high-speed ious to see if that level of accommodation grassicpas.com antennas will go a few years from now. The continues.” resulting 5G network is expected to play a City officials insist that there has been critical role in supporting cellular traffic for no change in their commitment to work- connected infrastructure, often called the ing with the industry. They suspect some BE YOUR Internet of Things, including self-driving franchisees and carriers do not understand vehicles. that the city weighs other demands for the Franchisees who work with carriers to poles, such as for first-responder and other BUSINESS BEST. find the best-located poles for their net- public-safety uses. works say New York has long been ahead DoITT also has been planning to issue of other cities in utilizing its infrastructure. a request for proposals for a new group The city inventoried some 250,000 light of mobile telecom franchisees and could poles early on and made many of them have one out by the end of the year. There accessible to operators. Only about 4,000 is speculation in the industry that delays in At Grassi & Co., we are much poles thus far have been reserved through putting together the RFP led to the post- more than just your accounting bidding, so a huge opportunity remains. ponement of reservation periods. A DoITT firm: we are specialists spokeswoman said the RFP remains in specifically trained in a diverse Some reservations development and has no release date yet. range of industries to help The Department of Information Tech- Insiders expect the agency to raise your business succeed. From nology and Telecommunications says it prices on the locations, which are gener- construction, architecture and has every intention of giving timely pole ally limited to intersections. (The city says engineering, to healthcare, access to the five franchisees, which attach it discourages side-street deployment to not-for-profit, manufacturing the nodes and connect them to fiber-optic minimize the impact on homes and work- and distribution and more, cable beneath the street. Bidding or “reser- places.) Monthly charges for light-pole use we provide a broad range vation” periods are decided at the city’s dis- go as high as $400. If past ventures are any of professional services cretion and not on a regular schedule, but guide, the city also might look to encourage concentrating on the challenges telecom companies say there typically have innovation with the sitings, as it did when unique to your organization. been several each year for the past decade. it converted pay phones to Wi-Fi kiosks Grassi & Co. We are the Since July 2016, though, not one full reser- through an RFP several years ago. company you keep. vation phase has been held. After a limited “New York has been hard at work devel- reservation period in April, DoITT told the oping the infrastructure to become the most franchisees that would be all for this year. connected, innovative city in the world,” a “Some carriers were up in arms,” said DoITT spokeswoman said in a statement. 488 Madison Avenue, 21st Floor Greg Weiner, a partner at Vertix Consulting “That includes transforming assets on our New York, NY 10022 l 212.661.6166

of Oakton, Va., which advises carriers and streets—be they pay phones, light poles or JERICHO, NY l RONKONKOMA, NY l WHITE PLAINS, NY l PARK RIDGE, NJ telecom franchisees on small cell deploy- more—to meet the needs of New Yorkers

BUCK ENNIS ments in New York. “This is the only means and visitors in the 21st century.” ■

July 10, 2017 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20170710.indd 5 7/7/2017 6:02:12 PM AGENDA INSTANT EXPERT POLITICS BY ROSS BARKAN

How one vote can scuttle massive city projects [in 5 steps]

THE PLAYERS THE ISSUE The decision makers change over The New York City political system is time, as term limits cycle council dominated by the executive branch, but 2 members in and out of office. There 1in one key area, the legislative body are many committees of mostly symbolic calls the shots. All land-use decisions— value in the council, but Land Use is cov- such as zoning, historic districts and even eted perhaps above all others. All rezon- sidewalk cafés—must go through the ings must pass through the Committee on 51-member City Council. As a result, few Land Use and its Subcommittee on Zoning major real estate projects can proceed with and Franchises. The current committee just the support of the mayor. Not only is chairman, David Greenfield (right) of Brooklyn, is known asa development-friendly Dem- the council empowered to thwart or support ocrat who has deep ties to the real estate industry and ambitions for higher office. Along a mayor’s development agenda, but recent with the City Council speaker and the mayor, the Land Use chairman plays a role in tradition also gives local members de facto veto negotiations with developers, assisted by a staff of attorneys and policy wonks. power over land-use changes specific to their districts. For the most part, this has been the state of affairs since the early 1990s. YEAH, BUT… After term limits were introduced and longtime speaker Peter Vallone Sr. was forced from office in 2001, council speakers 3began to defer more to the local member on land-use decisions. By the 2000s the tradition had taken hold that the council would not approve any rezoning unless endorsed by the local law- By the 2000s maker, creating a dynamic of horse trading between City Hall, the the tradition developer and the council WHAT’S NEXT had taken hold member. The system proved The City Council has been functional but generated crit- decentralized since the that the council icism, controversy and even 5days of Vallone. Melissa would not scandal. Angel Rodriguez, a Mark-Viverito became speaker approve any Brooklyn councilman, went to in 2014 on the condition prison in 2003 for demanding that she return more power rezoning without a bribe from a developer in to individual members. Her the backing of exchange for supporting the successor in 2018 could be conversion of a Red Hook warehouse into a Fairway supermarket. compelled to grant them even the local In the Bronx negotiations broke down between the Bloomberg more autonomy; many members lawmaker administration and the local councilwoman, Annabel Palma, will be forced out by term limits over a developer’s plan to turn the Kingsbridge Armory into a in four years and could demand mall. Palma and others wanted the resulting retail jobs to pay more say on land use now to fuel above the minimum wage. The council rejected the development bids for higher office. De Blasio’s in 2010—a rare defeat for Bloomberg—and later approved a City Hall has pursued rezonings proposal for an ice center. But financing for that project has been at a much slower pace than elusive, and the armory remains empty. Bloomberg’s, though they have been more sweeping and more are on the horizon. For example, the next speaker will be charged with carrying forward—or SOME BACKSTORY scuttling—a 96-block stretch of Before 1989 the City Council had no land-use authority. It was wielded instead by the Board of zoning changes in East Harlem. Estimate, which empowered borough presidents at the council’s expense. After the board was ruled 4 unconstitutional, the council was granted power under a charter revision, added members and— thanks in part to lobbying by speaker Vallone (left)—assumed its place beside the mayor as a key driver of land-use decisions. In Vallone’s council, according to former Brooklyn Councilman Kenneth Fisher, individual members could be overruled on projects in their districts. “One of the things Peter was very clear with members about was that he would definitely look to protect them politically in their districts when it came to controversial approvals. But if he made the judgment that something was in the best interest of the city, he was going to push it through whether they liked it or not,” Fisher recalled. One notable example: A certain New York developer named Donald Trump was able to move forward with his Riverside South project in the 1990s despite fervent opposition from Upper West Side Councilwoman Ronnie Eldridge. REDUX, BUCK ENNIS, BLOOMBERG NEWS

6 | CRAIN’S NEW YORK BUSINESS | July 10, 2017

P006_CN_20170710.indd 6 7/7/2017 9:01:41 AM AGENDA TRANSPORTATION

WE ARE PLEASED Private capital won’t save TO ANNOUNCE tunnel project, experts say Investors can play a role, but government must shoulder load BY WILL BREDDERMAN

he interim director of the Gateway Few question Gateway’s importance. The Program Development Corp.— aging tunnel servicing Amtrak and New the entity planning a commuter Jersey Transit has been corroding rapidly train tunnel under the Hudson since 2012’s Superstorm Sandy. Its $1.7 bil- TRiver—repeatedly stressed his group’s lion rehabilitation will choke off 75% of peak receptiveness to the “public-private part- train traffic unless another tube is built first. HAS LEASED nership” model while speaking at a press Renn considers that tunnel’s $11.2 billion conference this month. price tag bloated but said, “If the federal gov- 2 FLOORS John Porcari’s comments came after the ernment says, ‘We don’t want to spend our U.S. Transportation Department on June money on this,’ is there anything we would 30 pulled its trustee off the corporation’s spend our money on? The whole economy OUR THANKS TO board, which also includes representatives of the region benefits from those tunnels.” from Amtrak and the Port Authority of New Michael Likosky, a principal at consul- MICHAEL BERG, York and New Jersey. The decision looked tancy 32 Advisors, defended public-private HOWARD HERSCH AND to insiders like a move by President Donald partnerships—P3s—calling them “the only DOUG KAUFFMAN Trump to assert his power over a project that way to do Gateway effectively.” OF JLL his predecessor and Senate Minority Leader “We simply don’t have the capability in Charles Schumer had long championed. government, generally, to solve complex Barack Obama’s administration com- projects and problems,” Likosky said. “You mitted to underwriting half the cost of bring in the private sector for two reasons. the Gateway project and pledged access One is the money. The second is that the to DOT New Starts grants. But Trump’s private sector is going to do something proposed budget would sever that fund- innovative.” ing pipeline. His vision for infrastructure Still, he agreed that a large and direct “We could ﬁ nd no better renewal emphasizes local contributions and federal contribution is crucial to the tun- place for bringing private investments. nel’s construction. He is also “We’ve always had a very If a private one of several experts who together a great group open mind as to how best to predict Trump ultimately will of portfolio companies build it,” Porcari said, insisting “company is provide financing. that securing private assistance funding it, we, “There’s going to be federal to foster synergies is “something we’re actively grant money. There’s going to in a dynamic new evaluating.” the users, are be loan money. There’s going Funding projects through to be loan guarantees. There’s workspace than One a public-private partnership going to pay going to be private capital,” he can take a number of forms. them back said. “This administration is World Trade Center.” In some states companies going to make its own com- MARK J. PENN have refurbished highways mitments to Gateway. They’re PRESIDENT AND MANAGING PARTNER in exchange for the right to charge drivers going to take some ownership over the proj- THE STAGWELL GROUP tolls—an arrangement Trump’s team has ect. I think P3s will definitely be a part of it.” held up as a model. The Port Authority As for how a private investor could is using a so-called availability-payments recoup an investment from the tunnel, structure, paying a consortium $56.5 mil- some proposed a surcharge on train tickets. lion annually over four decades to design, But that could discourage ridership. build and maintain the replacement of the “To say that a private entity is going to Goethals Bridge. build, maintain and operate the tunnel and Other states have identified private get revenue solely from the tunnel traffic, stakeholders who stand to benefit from a that’s unfeasible,” said Denise Richardson, project and either encourage them to sink executive director of the General Contrac- capital into it or extract money from them tors Association of New York. “It would through tax-increment financing, which make the price of a ticket untenable.” bankrolled the extension of the 7 train to She argued that the greatest opportunity the Far West Side through property taxes. for a P3 lies in the contracting process. Vir- But many doubt whether any of those tually all taxpayer-funded infrastructure models, even when combined with the bil- projects employ private contractors for lions pledged by the Port Authority, could construction, and contractors handle the muster enough funding for a project of design, administration and maintenance of Gateway’s scale. In December Schumer an increasing array of public services. shot down the idea and demanded Trump In the bidding, awarding and fulfillment OFFICE OPPORTUNITIES FROM honor Obama’s commitment. phases, there is always a question of who pays 5,000-500,000 RSF That stance has support across the polit- for cost overruns and revenue shortfalls. If ONEWTC.COM ical spectrum. Aaron Renn, a senior fellow the public shouldered more risk, Richard- at the Manhattan Institute—a free-market son said, it would drive down contractors’ think tank—dismissed the public-private bids. Renn and Likosky argued for sparing partnership approach as “fancy debt financ- taxpayers. But all agreed that up-front fed- ing” and suggested it has few advantages. eral funding is crucial to Gateway. ERIC ENGELHARDT TARA STACOM “There’s really only one source of money, “Schumer is right when he talks about +1 (212) 667 8704 +1 (212) 841 7843 and that’s us,” Renn said. “If a private com- the need for direct government investment,” pany is funding it and building it, we, the Richardson said. “The administration is users, are going to be paying them back in right when they talk about private-sector the form of tolls or an availability payment.” involvement. It’s going to take both.” ■

July 10, 2017 | CRAIN’S NEW YORK BUSINESS | 7 AGENDA ASKED & ANSWERED POLITICS INTERVIEW BY GREG DAVID

NICOLE MALLIOTAKIS NEW YORK ASSEMBLY

he rst Republican woman to run for mayor, Nicole Malliotakis is now the GOP front-runner. She has represented the 64th Assembly District, which I’m sponsoring a includes Staten Island and part of Bay Ridge, bill to cap property TBrooklyn, since 2013. Before joining the Legislature, she was a “ taxes. Mayor de public affairs manager for Con Edison. On June 28 she took part in Crain’s Republican mayoral debate against Paul Massey, who Blasio is actively withdrew from the race later that day. For more of her thoughts opposing it. on key city issues, visit CrainsNewYork.com.

The percentage of New Yorkers in the workforce is at an all-time high. Does the mayor deserve credit? How would you keep the growth going? Jobs have been created despite our mayor and City Council. An individual who just opened a mega supermarket on Staten Island’s South Shore had to go through two years of hoops. That’s how much red tape there is for starting a business.

Can the city afford increases in capital spending? The mayor has increased spending by a whopping 22%1. We need to cap spending. Adding 30,000 [workers] to the city payroll was a mistake. Other than essential personnel, like teachers, police of - DOSSIER cers and re ghters, we should be eliminating the bureaucracy— like in the Department of Education, which is congested at the top. WHO SHE IS State Assembly member and GOP mayoral Are taxes too high? Which ones would you cut and by how much? candidate I am personally paying twice as much in property taxes as Mayor AGE 36 [Bill] de Blasio is, yet his home is worth three times as much as BORN Manhattan mine. I am a sponsor of the bill that would bring a property-tax cap to the city. Mayor de Blasio has been actively opposing it in Albany. RESIDES Great Kills, Staten Island How would you reduce housing costs? Do you support rent regulation? EDUCATION B.A. in commu- I do support rent stabilization, but it has to be reasonable. We nications, Seton Hall University; see a constant double-digit rise in our water bills2. And then [de M.B.A., Wagner College Blasio] wants to maintain rents. You will see fewer people invest- RELEVANT EXPERIENCE She ing in their buildings. An estimated one- fth of [New York City was a community liaison for late Housing Authority] apartments are underoccupied3. If a family was state Sen. John Marchi and former in a two-bedroom and their children have grown up and moved out, Gov. George Pataki. we can put the single person or couple in a one-bedroom so we HERITAGE Her father emigrated allow another family to move in. from Greece and her mother from Cuba. What has the current mayor done wrong on crime? PET ISSUE She is an active sup- Our police of cers have been able to keep the murder rate at. porter of animal rights. However, rape, felony assault and assault with a dangerous PARTY PLAYER Malliotakis weapon have increased. Grand larceny has increased every was state chair of U.S. Sen. Marco year since 2014. Identity theft and fraud have increased 14%4. Rubio’s 2016 presidential campaign.

Misdemeanor sex crimes have increased 18%, and felony sex BUCK ENNIS crimes 20%5. I nd it offensive that he claims we are the safest we’ve ever been when we have seen more assaults on children and women. His sanctuary-city policy that protects individuals who have committed crimes is a problem. FACT-CHECK: (1) True. Michael Bloomberg’s nal budget was $70 billion. Bill de Blasio’s most Why don’t you criticize the governor for what’s happening in the subways? recent one totaled $85 billion, an increase of The governor has six appointees on the MTA. The mayor has four. about 21%. (2) False. Annual per-gallon water When the capital plan came out, nobody said that we need to be rate increases under de Blasio have been 5.6%, 3.4% and 3%. (3) False. There are 176,694 investing in the subway signals. This is going to take decades to NYCHA units. About 11,000, roughly 6%, are 6 accomplish. That is why we have 70,000 delays a month . The underoccupied, according to NYCHA. mayor’s lack of response to the recent [A train] derailment is (4) True. Identity-theft and fraud cases outrageous. When 34 of your citizens are injured and the media is have increased by about 16%, to chasing you down to get an answer—or at least some sympathy 11,079 from 9,520, since de Blasio took of ce. (5) Half true. Those for those victims—how do you not acknowledge it? That is the big- statistics represent data from 2015. gest lack of leadership that I’ve ever seen from any public of cial. The 2016 rates increased by about 11%. (6) True. And that’s saying a lot, because I’m coming from Albany. ■ Subway delays have more than doubled since 2012.

8 | CRAIN’S NEW YORK BUSINESS | JULY 10, 2017

P008_CN_20170710.indd 8 7/7/2017 12:04:41 PM AGENDA REAL ESTATE

Albany’s ‘no’ on design-build leaves BQE project in limbo But lawmakers might have one last shot to approve it BY JOE ANUTA

he city Department of Trans- is exploring all possible options,” a portation, which is planning mayoral spokeswoman said. “Rehab- a $1.9 billion rehabilitation bing the BQE triple cantilever will be a of the crumbling Brooklyn- massive undertaking, and we intend to TQueens Expressway from Sands Street leave no stone unturned when it comes to Atlantic Avenue, has said repeat- to saving time and taxpayer dollars on edly that using design-build to bid out this critical project.” the project could cut two years off the After the state legislative session seven-year timetable and save up to drew to a close June 21, Mayor Bill de $300 million. But despite the pleas of Blasio seemed optimistic that lawmak- DOT Commissioner Polly Trottenberg, ers eventually would warm to the idea. state lawmakers left Albany for sum- “I think the consciousness on this mer recess without passing a bill that one is growing in Albany,” he said at a IMPASSE: As the BQE crumbles, lawmakers quibble over a key policy. would have authorized the technique, June 29 news conference. “And as I talk which pairs architects and contractors to the leaders about it, I think its day from the beginning of a project. will come, or at least will make more Independent Democratic Conference, which issues need to be scrutinized. Trottenberg and city officials said progress going forward.” which controls the Senate with the Outside observers said denying the that without design-build authori- GOP. In addition, a wide variety of city city the right to use design-build on the zation, they would be forced to bid Stuck in traffic stakeholders, including construction BQE makes little sense when the bene- out the project in the traditional way, But legislators had plenty of con- and union groups and good-govern- fits are so clear. which takes longer and often results in sensus this time around. A bill penned ment organizations, support design- “Considering the amount of traffic more lawsuits and cost overruns. by state Sen. Andrew Lanza of Staten build, and a companion bill passed that goes through that corridor and the But now it appears there is a chance Island, tailored to circumvent upstate in the Assembly a day before the ses- general public living next to it, time is city officials could hold out in hopes opposition, would have authorized sion expired. of the essence,” said Richard Thomas of that the state Legislature will pass a eight New York City projects to use “In the end we believed there were the Design-Build Institute of America, design-build bill shortly after the new design-build. The legislation was sup- issues that deserved more scrutiny and which advocates for the policy around session begins in January. ported by prominent members of deliberation,” a spokesman for Senate the country. “I just don’t understand “The city remains committed to the Republican Party, including state Majority Leader John Flanagan said in why you wouldn’t want to give the city securing design-build authority and Sen. Martin Golden, along with the a statement, but he did not elaborate on this kind of tool.” ■

Shooting the messenger Construction loan boosts City fines landlords who report Airbnb violations Bushwick development

IN ITS RUNNING BATTLE to stem the Goldman appealed on behalf of the DEVELOPER YOEL GOLDMAN secured away from construction lending in tide of illegal Airbnb listings, City Hall landlord, arguing that calling the may- a $270 million construction loan for recent years. has been alienating a powerful ally: or’s office was the quickest way to end a large apartment complex his firm, “There’s a huge void in the market,” landlords. the illegal use and that the city likely All Year Management, is building in said Josh Zegen, a managing principal Building owners often have detailed would not have known about the vio- Brooklyn at the old Rheingold brewery. and co-founder of Madison Realty, knowledge of what is happening at their lations otherwise, according to court Madison Realty Capital, a lending, who noted that the loan was part of a properties, information they might documents from the Office of Adminis- investment and development firm, had $700 million debt fund that the firm be happy to share with the de Blasio trative Trials and Hearings. The hearing provided All Year with a $95 million recently raised. “There are other spe- administration as it seeks to oust prob- officer agreed and wiped the violations loan to help finance the acquisition of cialty lenders who we compete against, lematic tenants who operate de facto off the record. the Bushwick site and pay for initial but it’s few and far between.” hotels out of their apartments. But the Department of Buildings development. That debt was folded into The loan will support the construc- But several landlords who have then successfully fought to have $3,400 the new $270 million loan. tion of two adjacent buildings on the reported illegal home sharing to the in violations reinstated. The city’s argu- The deal, one of the largest ever block-size site that broke ground last Mayor’s Office of Special Enforce- ment rested on laws indicating that a from Madison Realty, underscores how year and are expected to be finished next ment have themselves been slapped building’s owner is responsible for ille- the firm has grown its financing busi- year. Together the $400 million complex with violations. gal conditions on the property, even if ness as many major banks have backed will comprise roughly 1 million square “If you want us to cooperate with they were created by a tenant. feet of space, including 911 rental apart- you, you have to stop fining us,” said “We urge all New Yorkers to report BREW HOUSE: ments, 20,650 square feet of retail stores Jeffrey Goldman, a partner at Belkin violations of the law, including those The old and a 533-space parking garage. Burden Wenig & Goldman who spe- that create dangerous living conditions,” Rheingold Madison Realty’s loan was com- building will cializes in representing landlords. a spokesman said. “But reporting viola- be home to posed of $240 million in senior debt and In 2015 one of Goldman’s clients tions by others does not mean landlords more than $30 million of mezzanine financing, a alerted the mayor’s office to a tenant are shielded from their own legal duty of 900 Brooklyn type of loan that allows a borrower to at 120 W. 23rd St. who had put a providing safe homes to paying tenants.” apartments. take out more debt in exchange for pay- series of bunk beds in his apartment, Goldman said that the city’s stance ing a higher interest rate, generally 10% which he was advertising on home- makes little sense. or more. Zegen said he could not dis- sharing sites. The property manager, “We have doormen. We have com- close the loans’ interest rates. Aimco NYC, was hoping that instead of puters, video cameras. We can tell you “A lot of developers and these newer taking the tenant to court, city inspec- where illegal behavior is occurring,” lenders don’t want to do both a first tors tasked with cracking down on ille- Goldman said. “But the problem is, mortgage and a mezzanine loan,” he gal home sharing could issue a vacate every time city inspectors find a tenant said. “We have an advantage because order themselves. Days later they did, engaging in illegal behavior, they imme- we provide borrowers with a one-stop along with a series of building code vio- diately issue three or four violations shop for their financing needs.” lations directed at Aimco. against the building owner.” — J.A. — DANIEL GEIGER COURTESY OF ODA COURTESY OF NYC DOT,

July 10, 2017 | CRAIN’S NEW YORK BUSINESS | 9 AGENDA VIEWPOINTS

An outlier today, Manhattan represents nation’s future COMPARING NY DEMOGRAPHICS Hispanics and Asians are gaining; expect political power to follow WHITE BLACK HISPANIC OTHER Staten Island 62% 10% 18% 10%

EVERYONE KNOWS THAT remains more than 60% white, which U.S. 61% 12% 18% 8% Staten Island is dif- describes the rest of the country. Of ferent from the rest of course, it is also more suburban than Bronx 9% 30% 56% 5% the city. For example, the other boroughs, which is a key Donald Trump car- reason it remains a GOP bastion. It Brooklyn 36% 31% 19% 14% ried the borough with is also older than the other boroughs, Manhattan 47% 13% 27% 14% 57% of the vote, while which is the major reason it is wealthier he was crushed in the than most of the city. The lack of young Queens 26% 18% 28% 28% GREG DAVID other four. But you people is also its biggest problem. may not know that But if Staten Island is typical of Clark County, Nev. 44% 11% 31% 14%

Staten Island is demographically typi- the United States today, Manhattan SOURCE: New York Times Time Machine tool from American Community Survey; percentages have been cal of the rest of the country. And Man- resembles the America of the future. rounded and are for 2016 hattan is what the country is Demographers for their part expected to look like in 2060. have turned the spotlight on Those are the major Clark County, Nev., whose fivethirtyeight.com.) out that her mother is Cuban). Only takeaways from analysis by ethnic makeup is almost In the coming decades, New York one Hispanic contender has won a The Upshot from The New exactly what they expect the will continue to see Hispanics increase party’s nomination since 1977. No 43YEARS until U.S. York Times and fivethirtyeight. country to look like in 2060. as a percentage of the population, Asian candidate has even run a strong com of the latest city population is Interestingly, as the chart while Asians are expected to emerge primary campaign citywide. population data from the Manhattan-like shows, Manhattan bears a as the largest immigrant group—which When will Hispanics and Asians annual American Community resemblance to Clark County, raises an important political question. become more important in city politics? Survey. The chart, posted on which includes Las Vegas. White Democratic and Republican It seems inevitable but also not on the nytimes.com, shows the demographic (For more on the results of the survey, candidates will likely face off in immediate horizon. ■ breakdown of the city and the country check out “A Census Time Machine” November for the third time in the using the Time Machine tool. in the Times and “40 Years From Now, past five mayoral elections (although GREG DAVID blogs regularly at The key here is that Staten Island the U.S. Could Look Like Las Vegas” on GOP favorite Nicole Malliotakis points CrainsNewYork.com.

Transit mess was years in the making— now we must all chip in to fix it Fund subways with car-service fees as well as gas and internet sales taxes BY MITCHELL L. MOSS

oe Lhota is the right leader for New funding sources are vital; we upstate New York—which depends on York to take advantage of low gas prices the Metropolitan Transportation cannot just add to the MTA’s debt, downstate tax revenue—will continue and do the same. Authority. He knows finance, which is financed by bridge and tunnel to lose jobs and young people. New Yorkers pay a 50-cent surcharge politics and how to manage large tolls and subway fares. This will require Whatever we do to raise funds, con- on every taxi ride, a fee that goes to the Jorganizations. a “no fight” zone between the gover- gestion pricing would not be sufficient. MTA. We should impose a $2 fee on But, as recently departed nor and the mayor so they can harness We need new sources of money from all for-hire car-service trips in the city Knicks President Phil Jackson demon- the state Legislature—which has been users of our streets and arteries, just and the suburbs. This could generate strated, success requires a strong team, missing in action—when it comes to as we get from MTA bridge and tunnel approximately $1 million a day (based not just a great man. mass transit. The business community users today. on 500,000 daily trips), more than $350 The MTA’s problems did not occur must also be a serious advocate, rather New York state’s gasoline tax of 44 million a year. And now that ride-share overnight. The decline of our subways than just a cheerleading squad. cents per gallon should be raised by at firms operate statewide, such a fee could took a long time to develop and will New York City and the surround- least a nickel. It is 14 cents lower than aid upstate transit systems as well. take a long time to cure. More than 20 ing suburban counties are the sources Pennsylvania’s, 5.5 cents below Wash- Finally, let’s tax the internet retail years ago, then Gov. George Pataki put of the state’s economic energy and de- ington’s and just barely above Con- purchases jamming our streets with the MTA on the wrong path by aban- mographic growth. Without the MTA, necticut’s. Last year New Jersey raised Amazon Prime, Fedex, FreshDirect doning the state’s commitment to mass the city and the region will suffer, and its gasoline tax; now it is time for New and UPS trucks. Unlike the sales tax, a transit. As the Citizens Budget Com- modest internet retail tax would tap a mission has documented, the agency’s surging shopping pattern that is driv- flawed priorities for capital spending ing brick-and-mortar stores out of and its costly procurement procedures business and overcrowding our streets led to steady declines in routine main- with delivery vehicles. tenance and repair. This is a rare moment; transpor- Unlike every other mass-transit sys- tation and infrastructure are high on tem in the nation, the MTA operates the public agenda. But mobilizing civ- 24 hours a day, seven days a week. If ic groups and public officials is essen- we are to modernize the system, riders tial. We cannot relax and assume that a must be prepared for short-term pain new MTA chairman can work miracles to assure long-term gains. That means without all New Yorkers contributing closing down subway lines for weeks to the effort.■ at a time—rather than just for six-hour stints at night—to install advanced sig- Mitchell L. Moss is the director of the

BUCK ENNIS, GETTY IMAGES nal technologies. NYU Rudin Center for Transportation.

10 | CRAIN’S NEW YORK BUSINESS | July 10, 2017 COURTESY OF TURNER CONSTRUCTION CO. L dicative barometer of sector’s the success might employment, be said revenueall from projects those isn’t counted inits Amore books. in- largeseveral projects. Turner Because as aconstruction acts manager, tributes much of its 2.1%dip to its work as an agent of owner the on workmen. There’s alot of forneed peoplethethat we employ.” it’sbecause atight labor market for construction professionals and headhunters. People are soliciting employees of of all our companies ployment,” Murphy said. “But our employees are contacted being by workersstruction amid asteady stream of proposal requests. over-year increase since 2007—reflecting continued demand for con reached that mark. And wages rose by city’s 5.4%—the highest year- ment rose by 5%from 2015to fourth 2016,the straight year growth York Building Congress recently reported that construction employ just one of many to increase sizeof the its city workforce, as New the now totals 1,300workers. Ultimately, German-owned the company is year. In metro wider the area, its employment surged by 10.9%and and we continue to hire more people.” nue,” Murphy said. “We’re doing more work than everinNew York, Charles F.Charles Murphy state for industry. the For instance, buildings are rising across city. the surprising result at many when atime new on list the suffered a revenue downturn—a 1.4% drop. In nearly all, companies the half firms liststruction collectively endured a as its competitors on Crain’s WORKERS WANTED THE SCOOP AGENDA “If work the were declining, there would people looking for be em Turner’s city employee count has hit from 1,050,a3.4%rise last But raw revenue donot decreases necessarily indicate aworsened “The amount“The of workbeing done is notalways inrevereflected York–area revenue rose by 20.5% company’s already-massive New AECOM Tishman ast year one was agood for !aXXTUhW3C 9QRaG8c BXXGFURII1DTH3) "QHbcWdc7RGPH7XDG 3HfCXaT3C $cQ8c 3HfCXaT3C BcQ8c "XUUHPH5XRWc3C @UVHa8c %UdbQRWP3C 3XacQHaW!UeG 3HfCXaT3C 8RgcQ eH 3HfCXaT3C BcQ8c 3HfCXaT3C BDcHa8c (above), senior president vice at company. the

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CN018305.indd 1 7/5/17 3:26 PM inthebusiness. weighing whethertostay suchasMedinaare THE ROAD AHEAD: THE SUBJECTCABS BUCK ENNIS 14 |

CRAIN’S NEWYORKBUSINESS | TARNISHED MEDALLIONS

| CATEGORY Drivers Drivers

| JULY 10,2017 CAB STRAPPED CASH- BY MATTHEW FLAMM loans, fearfortheirfuture individualowners assets insteadofre nancing medallion As atroubledtaxilenderlookstoseize onrado Medina woke up April 22 to a UBER’S IMPACT taxi driver’s nightmare. The medallion attached to his 2012 Toyota Camry Ride-hailing apps have turned an entire industry upside down yellow cab had been removed as the car sat overnight in his driveway in REPORTED BY MATTHEW FLAMM CJackson Heights, Queens. The worst part was that he knew who did it: his lender, Melrose Credit Union. Already hit with mil- WILLIAM GARFIELD, lions of dollars in losses due to bad loans, Melrose had toughened its stance on the terms it was willing GREEN-CAB OWNER/DRIVER to offer Medina to refinance. It didn’t matter that he’d never missed a payment. If he didn’t put his A LIVERY-CAB DRIVER for 14 years, house up as collateral, the lender would foreclose. William Garfield bought one of the first green- “They said, ‘We’re going to repossess the medal- cab permits in 2013, allowing him to pick up street-hails outside Manhattan’s core business lion in 10 days if you don’t put up the house,’ ” Medi- district. na said. “They didn’t care that this has been my job for 30 years.” Early days: He grossed “$300 and change” To fend off the lender, which has continued to in six hours. demand payment, Medina has decided to file for Now: “You can make $90 in a day.” Chapter 7 bankruptcy protection. But without his Blames: Livery and ride-hail drivers who make medallion, he can no longer drive his cab. illegal street-hail pickups, Uber for flooding the These are rough times for taxi drivers but even streets and the city for not limiting the number rougher for drivers who borrowed from Melrose to of ride-hail vehicles. buy their medallion, a piece of metal screwed onto Why he doesn’t pick up Uber riders: (The the hood of every yellow cab that gives its owner the Uber app is available to green-cab drivers to exclusive right to pick up street hails throughout the pick up fares.) “If I take a fare into the city, it city. That right once made it a precious commodity. can take me half the day to get back. It’s not Medina paid $135,000 for his in 1990. As demand Manhattan island. Call it Traffic Island.” for taxis grew and the number of medallions stayed How he survives: A livery app supplies local relatively flat, its value skyrocketed to more than trips in Queens. He also picks up people for $1 million by 2014. medical appointments. Then San Francisco–based Uber began gaining Monthly gross: About $4,000 from street hails traction in late 2014, using bonuses to lure drivers as and prearranged livery and medical trips. well as cheap fares and an easy-to-use app to attract Weekly net (not counting personal taxes): customers. The competition from more than 50,000 $550, or $11 an hour, after $450 in expenses. Uber drivers has ravaged medallion values. Two The future: “I do want to hold on to this permit, sold recently for less than $250,000 apiece. Revenue but some months I make more money outside has dropped for owners, leaving many lenders with the meter. Is it worth it? I’ve got to figure out delinquent loans. something else.” Medallion owners have complained for months about inflexible treatment at the hands of Melrose. The change began in February, when the lender was seized by the state’s Department of Financial Services recognizes there are not enough buyers to resell them interest rate to 2.5% from 4%. They are also doing and placed into conservatorship under its federal to and that it makes more sense to go after whatever deals such as transferring medallions to borrowers regulator, the National Credit Union Administration. else the borrower owns. who can afford the payments. At stake, industry observers say, is more than Medina, like many owner-drivers, had borrowed Melrose, by contrast, has been threatening to just the livelihood of owners. Melrose, based in Bri- against his medallion over the years and currently raise interest rates to as much as 8% and asking for arwood, Queens, has provided financing for more owes $587,000. At the same time, his taxi-driving large lump-sum payments, in addition to its other than 3,000 medallions—almost a quarter of the grosses fell by 40% from their $10,000-a-month peak, demands. city’s 13,587—to the tune of around $1.5 billion. As and he struggled to meet his $3,586 monthly payment Some insiders believe that the National Credit of March 31, the credit union reported nearly 500 despite working 14-hour days. Often he used the rent Union Administration’s hard line reflects an “troubled debt restructures,” totaling more than $250 money he receives from a tenant in his two-fami- assumption that medallion loans are not worth re- million. The long-term fear is that, by foreclosing on ly house to cover the payments. Taxi-industry loans structuring. Instead, the goal is to isolate the damage more medallions than it can find buyers for, Mel- typically have 20-year amortizations but are renewed and move on. That stands in contrast to the more rose—or its regulator—will further under- moderate approach the regulator had when mine the asset. In the worst-case scenario, it took over Montauk Credit Union in late the credit union will unload repossessed “THEY WERE GOING TO SEIZE MY 2015 and merged it with Bethpage Federal medallions in a fire sale. And its recent be- MEDALLION IN 10 DAYS. THEY Credit Union last year. (The agency recent- havior has some predicting that the credit ly put a third taxi lender, LOMTO Federal union now believes the yellow-cab industry DIDN’T CARE THAT THIS HAS Credit Union of Woodside, Queens, into will never get out of the red. conservatorship.) BEEN MY JOB FOR 30 YEARS” “I’m seeing a very different approach Up in arms from a year ago,” said a finance-industry Taxi owner-drivers have protested their expert familiar with the situation at Mel- treatment outside City Hall and sent a letter asking under new terms every three to five years. When his rose. “They’re saying things aren’t the same as they Gov. Andrew Cuomo to intervene but to little avail. three-year agreement expired in January, he was hop- used to be.” In the meantime, Melrose has been going after assets ing to work out a modification that would have let That has led regulators to make it “very hard to including bank accounts and homes. him continue payments at a lower rate. Melrose had modify these loans,” the expert added. “They’re forc- “The other lenders are working with borrowers on other plans. ing these people to more or less give up.” an individual basis,” said David Beier, president of the “These guys at Melrose said if I put up the house, Committee for Taxi Safety, which represents medal- they’re going to give me a very good deal,” Medina Yellow lights lion leasing managers. “Melrose is taking a cookie- said. “And I said, ‘I don’t have a house. The house be- A spokesman for the National Credit Union Ad- cutter approach and demanding the same thing from longs to my wife. And my wife is not going to do it.’ ” ministration said the agency could not comment everybody, no matter if you’ve got a great payment The house has belonged to his wife since its purchase on any individual’s finances but stressed that it was record. They’re saying, ‘We need your house as collat- 19 years ago. working with Melrose to improve operations. eral. We need your spouse to co-sign as a guarantor.’ According to Beier, many lenders working with “The credit union’s current management has And they are forcing borrowers into bankruptcy.” clients are sometimes splitting loans in two and de- both the responsibility to serve its members and In recent weeks Beier has been hearing about few- ferring payment on one of them. Or they might ex- conduct the credit union’s business in a safe and er medallion seizures—a sign, he said, that the lender tend a loan’s amortization to 40 years and lower the CONTINUED ON PAGE 16

JULY 10, 2017 | CRAIN’S NEW YORK BUSINESS | 15 CABS | TARNISHED MEDALLIONS BASIL MESSADOS, CEO, QUEENS MEDALLION LEASING sound manner,” he said. “NCUA has the additional responsibility of protecting 108 million credit union accounts insured by the Share Insurance Fund. All SHORTLY AFTER starting out as a cab these responsibilities play a role in the decision- driver in 1985, Basil Messados began leas- making over Melrose’s operations.” ing cabs and medallions to other drivers. There is some debate in the industry over wheth- He gradually built a lease-management er the regulator is simply engaging in negotiation company whose holdings tactics. now include 150 medallions. “I think Melrose is just playing hardball to see Early days: In 2014 drivers paid Queens what they can get,” said Andrew Murstein, president Medallion $1,450 a week to lease one of of taxi lender Medallion Financial. its 560 cabs. As evidence, he cites his own role advising Now: Cab drivers are harder to attract. A private-equity firms that see opportunity in the taxi lease now averages $950 per week. The industry’s troubles. Once prices fell low enough, they company charges both driver-owners and would buy up medallions and run them as a business. medallion owners a percentage for manag- Murstein thinks that Melrose sees enough of a ing their operations, but “the spread gets future in the business that its executives are not yet smaller as the business gets diluted.” willing to let go of their holdings. Finances: Profits are down 20% to 30% “I have approached the [interim] CEO of Melrose since 2014. [Steven Krauser] and told him we stand ready to buy Blames: Lenders—specifically Melrose both medallion loans and actual medallions from Credit Union—that are taking a tougher line them and that the private-equity firms we are work- on loan modifications as well as the city for ing with have several billion dollars available for such not limiting the number of Uber vehicles. purposes,” Murstein said, adding that the CEO sent “a “One side is regulated down to the floor, and letter back [saying] they aren’t interested in selling.” the other side has no regulations,” he said. Even without a fire sale, however, medallion How he survives: “The only way to deal prices could continue to decline. The average daily with dilution is to put more cars on the fare-box total for the first three months of this year road, even if you make less per car.” was down 29%, to $4.5 million, from the same period in 2013, according to the Taxi and Limousine The future: “It’s always in your head. Commission. Taxi-medallion prices, which peaked We have children that we bought medallions for as an investment. Today they’re at $1.3 million in 2014, hit a new low, $200,000, in facing bankruptcy. You hope regulators May, albeit for an all-cash deal, which insiders don’t will at least cap the number of vehicles consider representative. on the road.” Sutirtha Bagchi, an economics professor at Vil- lanova University who recently conducted a study How the city can help save yellow cabs Taxi owners are declaring bankruptcy as revenue and medallion prices tank. Here’s what some experts are proposing to keep yellow cabs in the black

any yellow-cab drivers who can no longer make the pay- Lyft, Uber and other ride-hail services in the category of for-hire vehicles ments on their medallions accuse the city of letting Uber that can provide only prearranged service. Traditionally those rides were and other ride-hail purveyors flourish with scant regula- ordered in advance over the phone, while today’s customers more often tion. As those driver-owners see it, they put down their life use an app. Msavings for the exclusive right to pick up street hails across the five bor- Riccio believes such apps fall somewhere between a phone call and a oughs, while Uber operators paid nothing for roughly the same privilege. street hail. But they cross a legal line because e-hail drivers do the bulk The medallion owners’ arguments haven’t fallen entirely on deaf ears. of their business in places where yellow cabs have long been exclusively The city has changed regulations to aid driver recruitment and medallion authorized to pick up fares. “If you use that app standing on the street in sales. And Lucius Riccio, a Colum- Midtown, is that prearrangement or bia University lecturer and a for- is that a [street] hail?” he asked. “I mer transportation commissioner, say it’s a hail.” So far the courts have says the city owes the medallion disagreed, ruling that an e-hail is a owners money. prearranged ride. “You think people paid billions Regardless, Riccio, who has of dollars for a piece of metal?” done consulting work for a taxi Riccio asked. “They were buying group, thinks ride-hail services into a contract that was for an should pay to operate in the central exclusive service. Either pay the business district. He has suggested guys back because you violated the an annual charge of $15,000 per contract or charge everybody else car—roughly on par with a me- for operating in the same space.” dallion owner’s expenses—which At the heart of Riccio’s argu- could have the added effect of ment is the question of whether reducing their numbers and easing hailing a car on a smartphone congestion. is the same as raising your hand Riccio is in the minority, howev- and flagging one down. The Taxi er. “People who bought medallions and Limousine Commission puts CONTINUED ON PAGE 18 BUCK ENNIS

16 | CRAIN’S NEW YORK BUSINESS | JULY 10, 2017 on medallion prices, estimates the asset’s value at ELVIN MARTE, PRESIDENT, RIVERSIDE CAR & LIMO $400,000. His calculations combine data on fare-box totals, medallion-loan interest rates, labor costs and Google Trends search results, which he used to track THE SON OF A CO-FOUNDER of Washington Uber’s growth. Heights–based Riverside Car & Limo, Elvin Marte Thomas O’Shea, CEO of Aspire Federal Cred- started driving a livery cab in 1992. He has been it Union, puts a medallion’s value at $450,000 to president since 2003. $550,000. But the estimates are almost academic be- Early days: In 2014 Riverside had a 365-vehicle cause there is essentially no market for the asset. fleet. Each driver paid weekly dues up to $80 for “This is the 2008 of the taxi-medallion industry,” radio assignments. said Richard Feinsilver, a bankruptcy lawyer with of- Now: The fleet is down to 306 cars. “Uber fices in Queens and Nassau County, referring to the offers incentives,” he said. “You get a lot of housing mortgage crisis. During the past six months, drivers switching.” he has met with more than 200 medallion owners and How he competes: Drivers get fares via its worked out personal bankruptcy filings for around app, plus face-to-face support. “We have a net- 100 of them. In the past month, almost 50% of the work of 150 car services. If you call one and they owners he’s met with have been Melrose clients. don’t have a car, one of mine can pick you up.” “Everybody got caught with their pants down Finances: “Revenue is down 15% to 20% when Uber came in,” he said. “No one anticipated over the past three years.” Profits are down the behemoth it would become.” even more. “Before, we had a two-way radio, He added that Chapter 7 bankruptcy protection which was inexpensive. Now we have all this does not work for everyone, but that it has given his technology.” clients a fresh start. Many of them still drive a cab Blames: Regulations that give ride-hail com- but lease rather than own. petitors an edge. “They get cheaper insurance “They realized they’ve got to change their busi- [thanks to Uber drivers receiving workers’ ness model,” Feinsilver said. “Those loans weren’t compensation through the Black Car Fund]. They worth it anymore.” have surge pricing—drivers like that. They don’t But the loss is hard to swallow nonetheless. Me- have to put emergency lights on the back of the dina has painted his yellow Camry gray and turned vehicle or a camera inside the car.” it into a personal car. He has also begun driving a The future: “I’m trying to get Medicaid and friend’s cab, paying $110 for each 12-hour daytime health care work [for drivers]. We don’t know shift. what’s going to happen five years from now.” “I would like to change to something else,” he said, “but this is the only thing I know.” ■

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JULY 10, 2017 | CRAIN’S NEW YORK BUSINESS | 17 BUCK ENNIS CABS 18 |

CRAIN’S NEWYORKBUSINESS

TASH, TASH way. ButI’mnotoptimistic.” I stuckaroundthisbusinessthinking itwas goingtochange inapositive The future: “Iamgoingtogetbackwhat:beingacabletech. Iknow drivers.” Blames: “Uber cut thefaresandoverflowed themarketwithsomany expenses, including gas.“Sixhundredisagoodweek.” tax andcontributingtotheBlackCarFundfor comp, workers’ plus$650in Weekly net:$592, or$13 to$15anhour, aftera20%commission, sales aweek.Monthly gross: 40to45 hours About$7,200working Now: “You’ve harderfor gottowork thesameamount.” but Iwasn’t complaining.” aweek.hours “Ubergave meflexibility,” hesaid.“Iallthetime,was working Early days:Hegrossed$8,000to$11,000monthly, 36to40 working Uber in2013andbecameafull-timedriver2015. a pregnancy. To make upfor her lost income,timefor hebegandrivingpart Warner Cablewhenhiswife, ahealthcareaide, was putonbedrestduring | TARNISHED MEDALLIONS thinks ride-hail vehiclesthinks as well as to cabs need pay for right the to op- challenge.” outer boroughs but managing called growth their a“critical public-policy Schaller, noted that ride-hail vehicles have to taxi-starved aboon the been looked at issue the in2015.The report, transportationby consultant Bruce tion had increased significantlythe since de Blasio administrationlast Areport Unsustainable? inFebruary titled services. Center. companies inareport last year for University the Transportation Research make with congestion, to deal to growth hethe which tied of ride-hail again. Buttrying Daus it’s thinks amove eventually city the will have to flamestwo years ago, and Mayor de Blasio hasBill shown no interest in a growth cap went down in thing is else Band-Aids.” clients.taxi-industry “Every- at Windels Marx, has which commissioner and apartner Matthew Daus, aformer TLC said for ride-hail services, and impose growth limitations” flexible pricing for yellowcabs things you can doare allow to keep competitive. taxis “Two forneed aggressive measures notionthe of bailouts a see value.”lose have no obligation they when city shouldmedallions. “The professor has who researched nova University economics said Sutirtha Bagchi, aVilla- them,” sold well they when very 1980swerein the able to do whopreferred tousehisnickname, was afieldtechnicianTime for A former Department of Transportation deputy commissioner, Schaller Daus is not to only attribute the expert rising congestion to ride-hail City efforts to introduce But reject who eventhose UBER BLACK/SUV DRIVER

| JULY 10,2017 found traffic conges - dismay as ride-hail services havedismay battered as ride-hail services while industry taxi the wheelchair-accessiblebe by 2020.But disability advocates have watched in try is empoweredtry to compete,” she said, “itbounce could back.” still toward lightening economic the burden on “As taxis. long indus as taxi the - applyingbelieves would go along thatto equally ride-hail services way rule can without providethe 50% mandate. fulfilling service is building its ownwhich has fleet, cars.to 200 close The company says it costs, vehicles the those are unpopular with many drivers. moreuse gas and require more maintenance. Despite city subsidies to cover Wheelchair-accessible vehicles are larger and heavier than standard cars, mandate as is having widely seen hurt cabs competition inthe for drivers. little wheelchair-accessible of own. their In accessibility the fact, service Mel Plaut, aprogram analyst at public-policy group TransitCenter, has createdUber aprogram for funding accessible for-hire vehicles and FREDY TELLO, OWNER, SEMPERIDE A VETERANOFTHEU.S. MARINES, in thisbusiness.” jobs. You have tobecreativestay compete for government- owned business.Thathelpsme been certified asadisabled been certified multiple fronts.SempeRidehas togrowon The future: “I’mtrying has kept meafloat.” They for work meandfor Uber. That cannotgooutandbuyacar.drivers formy todrivers Uber. cars Alotof And I’ve builtupabusinessrenting contracts for medicaltransportation. refined, Ialsoget reliable service. traditional black-carprices, for nice, How hecompetes:“Mypricesare a company.” just beadriver. Iwanted toown many But Ididn’t cars. want to They floodedthesystemwithso Now? “You tobreak$200. struggle $400 onaFriday orSaturday night.” you candrive.’ You could easilymake Itsaid,beginning. ‘Ifyou’ve gotacar, ad onCraigslistwhenUberwas just small Early days:“Ifound avery disabledveterans. aims istoserve chair-accessible vehicle.Oneofhis His 13-carfleetincludesawheel- in2013. service, whichhestarted Uber whilebuildinghisownblack-car Fredy Tello drove for contract veteran– get there.” years from now and how dowe like looks three toindustry five onshould what focused be the values,” said. “They Schaller to breathe life into medallion “People are on trying focused slide market. medallion inthe argues that nothing can stop the Manhattan’s crowded core, he always will taxis have aplace in to charge. And though he thinks totechnology gauge how much pricing that model would use more than 13,000yellow cabs agreed to require that of half the long battle, legal city in2013the field, however. the As result of a gument for leveling playing the ALL ACCESS erate. But he prefers aroad- There is a public-interest ar- providing — M.F. TOURISM | SHIPWRECKED

DISTANT SHORE: Red Hook can handle larger ships, but accommodations remain modest—at best.

o sooner had the Queen Mary 2 The city spent $52 million a decade ago to build steamed into New York Harbor on the 182,000-square-foot terminal. These days, how- a recent morning than the sweeping ever, it sees far fewer dockings than when it first Brooklyn views of the Statue of Liberty, Gov- opened. Ships are expected to come to port in Brook- ernors Island and Lower Manhattan lyn 25 times this year. That’s 12 fewer than during its Ngave way to a landscape of empty lots, warehouses inaugural season in 2006 and less than half of the 59 and barbed wire fences. The 240-foot-tall ocean ships that docked there at its peak in 2008. cruising liner had arrived at its final destination: the Brook- “People say to me ‘There’s a cruise terminal in lyn Cruise Terminal on the Red Hook waterfront. Brooklyn?’ ” said Louis Pernice, president of the Inter- Michael Morrison, one of the 2,620 passengers national Longshoremen’s Association Local 1814. The who had just spent seven days cruising across the union represents about 1,000 dockworkers in Brook- takes a Atlantic from Southampton, England, was far from lyn, including 100 or so who load and unload cruise impressed. “They couldn’t crack an egg here,” he said. ships when they arrive at the terminal about once Morrison had come with his wife from their every two weeks during the warm months. “Most peo- home in Warwick to celebrate his 80th birthday in ple don’t even know cruise ships land in Brooklyn.” bruising New York City. But as he stood on a curb in front of Cruise tourism represents only a small per- the terminal, he was centage of the city’s hardly in a celebra- 60 million annual A decade ago the city poured tory mood. Morri- “PEOPLE JUST ASSUME visitors. But Man- more than $50 million son had a miserable THEY’RE GOING TO NEW hattan’s five slips into the Red Hook Cruise time locating his have seen growth luggage, the nearest YORK, NOT REALIZING THERE over the years—159 Terminal. Today many who subway was a mile ships docked at the arrive at the port feel they’ve away, and the car ARE OTHER PARTS TO IT” terminal in 2016, been left high and dry service he hired had 40% more than a trouble finding the decade ago. It now place. An indoor waiting area with only a handful draws about 1 million passengers a year. Brooklyn’s BY DANIEL GEIGER of seats and two single-person bathrooms provided inability to pull in traffic—the facility welcomed just little comfort. 126,000 passengers last year—has prompted some to “People just assume they’re going to New York, say that the valuable waterfront real estate it occu- not realizing there are other parts to it,” another pies should be used for other purposes. flummoxed traveler, Gilian Wilson, said. Rep. Jerry Nadler, a stalwart for preserving com- Welcome to the city’s other cruise ship terminal. mercial enterprises along the Red Hook waterfront, While Manhattan’s much busier port on the West has called for the terminal’s closure so that more Side is close to Broadway shows, museums, hotels and resources can flow to the Manhattan facility. He says parks, Brooklyn’s facility leaves passengers marooned the Red Hook terminal should be converted back

PETER D’AMATO on a remote stretch of industrial waterfront. CONTINUED ON PAGE 20

July 10, 2017 | CRAIN’S NEW YORK BUSINESS | 19 TOURISM | SHIPWRECKED

to its original use as a container port. “The funda- Terminal’s slim finger piers, the Red Hook terminal “There’s huge industry interest in Asia,” Nelson mental problem is it’s out of the way, and people is better suited to handle the larger vessels currently said, “and vessels get diverted as the cruise lines test don’t want to go out of the way,” the Democrat said. being built. These ships can accommodate 6,000 or those markets.” “When they come into the city on a cruise, they’re more passengers—almost double the count of to- Brooklyn Borough President Eric Adams said going to be here for a few days, and they want to day’s biggest ships. he believes the problem isn’t competition from afar be in Manhattan. It was an experiment and it failed, “At least four of our 10 brands will have ships that but the facility itself. Even as Brooklyn has gained and now it’s silly to waste an asset.” can carry 6,000 passengers in the coming years,” worldwide recognition as a tourist destination in its said David Candib, vice president of development own right, the terminal, he said, remains a remote High seas and operations at the $45 billion Carnival Corp., and daunting launching point for travelers interest- But city officials aren’t ready to abandon ship. the world’s largest cruise company. Its Cunard and ed in the borough. One reason for staying the course is that the cruise Princess lines dock in Brooklyn. “We are exploring “People have done the Manhattan thing,” Adams industry is poised for growth. And Joshua Nelson, possibilities to have the Brooklyn Cruise Terminal said. “They want to start exploring, and we need ex- a senior vice president at the city’s Economic De- for our larger vessels of today and tomorrow.” cursion packages that encourage passengers to see velopment Corp., which oversees both the Manhat- None of the cruise lines have disclosed whether Brooklyn. We see the terminal as an important site tan and Brooklyn terminals, believes Brooklyn can’t they intend to ramp up trips to and from the city, for the future growth of tourism in the borough.” help but see a benefit. but Ajamil said he expects major cruise markets in In an attempt to make Brooklyn a more attractive “We’re the fifth-largest cruise destination in the the country to capture a significant percentage of the port, the city announced in May that Ports America, U.S., and there’s a strong desire among the cruise global growth. Ahead of New York City, Miami is which operates the Manhattan terminal, will begin lines to bring the best and largest vessels to the city,” the country’s biggest cruise port, followed by Port managing the one in Red Hook as well. The deal, Nelson said. “At the EDC, we’re committed to a Canaveral and Port Everglades in Florida and the which stretches through 2029, requires the company working waterfront.” Port of Galveston in Texas. to invest $15 million in upgrades in Brooklyn and Luis Ajamil, a cruise industry analyst at Bermel- In the past, however, industry growth alone hasn’t $23.5 million in Manhattan. The company did not lo, Ajamil & Partners, said the industry will add been enough to drive ships to Brooklyn. According respond to a request for comment. enough boats in the next decade to carry 32 million to the EDC, the demand for cruises grew globally by Simply having the two sites managed by a single passengers around the globe annually, a roughly 62% from 2005 to 2015, a decade in which Brooklyn company so that they can operate in a complemen- 30% increase. “Starting in 2018, the industry will be saw its cruise traffic taper off. tary and not competitive fashion could help steer going through a growth spurt, adding about 20 new Nelson pointed out that one reason Brooklyn more ships to Brooklyn. cruise ships a year that are all huge in size,” Ajamil hasn’t grabbed a bigger share of boats is because “We want to harmonize operations between the said. “In addition, some of the cruise lines are re- the cruise business is notoriously fickle, with lines two facilities, take what business comes our way and investing in older ships and extending their life, so switching destinations year to year to present fresh develop it in a holistic way,” the EDC’s Nelson ex- there’s going to be less reduction from attrition.” itineraries to passengers. Many carriers are also plained. “We have learned a lot since we launched Brooklyn does have some advantages. Because it flocking to emerging markets, like China, where a decade ago, and we see a clear and a bright path is more easily navigable than the Manhattan Cruise they see future growth. forward.” ■

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20 | CRAIN’S NEW YORK BUSINESS | July 10, 2017 SPECIAL ADVERTISING SECTION OF CRAIN’S NEW YORK BUSINESS

BROOKLYN WHY KINGS COUNTY IS KING

very borough has its fans, but only Brooklyn has a residential and commercial real estate markets are hot. little bit of everything that makes New York City so Public and private investments in sites from Brooklyn’s Especial. industrial past have coaxed the Brooklyn Navy Yard and Industry City into new life as hubs of innovation and It’s got fabulous food, beautiful views, leafy streets and industry. a retail landscape that lets you shop until you drop. With some 40% of its population foreign-born, it has residents Culture has always been at the heart of Brooklyn. from all over the world. Brooklyn’s got Prospect Park, Relationships with newcomers in retail and commercial the Brooklyn Bridge Park, Coney Island, the Nets, live real estate, however, have created some surprising new music venues, live theater, the Barclays Center, the New options that will appeal to the most jaded Brooklynites. York Aquarium, Brooklyn Museum, Brooklyn Children’s Museum, BAM and the Brooklyn Botanic Gardens. For example, this summer the Brooklyn Bridge Park Conservancy has partnered with DeKalb Market There’s the Brooklyn Bridge to stroll across; or the Hall—a new 60,000-square-foot food hall in Downtown Manhattan skyline to gaze at, from the Promenade in Brooklyn—to bring local, regional and international Brooklyn Heights; or a view of the Statue of Liberty to food-and-drink vendors to the 18th annual Movies With admire, from the shores of Red Hook. a View. And at Industry City’s Summer Spree, there are concerts programmed by the Williamsburg venue, Brooklyn, let there be no doubt, is just plain cool. Brooklyn Bowl.

But the borough isn’t just a place to play. Both its It’s summer. Get out there and enjoy Brooklyn!

Explore Brooklyn Section B MECH.indd 1 7/6/17 12:32 PM SPECIAL ADVERTISING SECTION OF CRAIN’S NEW YORK BUSINESS EXPLORE BROOKLYN 16 COURT The current building boom has its roots in the AT MONTAGUE STREET A building boom hits Downtown Brooklyn Downtown Brooklyn District that New York City rezoned in 2004 for greater commercial density. The neighborhood is sprouting new places to live, work and play Since the rezoning, there has been a $400 million public investment in roads, parks, cultural venues and public spaces, according to the Downtown Brooklyn Partnership. DOWNTOWN BROOKLYN’S BEST PRE-BUILT SUITES The private sector has committed to making another $11 billion in investments in projects that are completed, underway or in the pipeline: some 40 million square feet of residential, commercial and institutional space. Among them are the redesign of the Cadman Plaza Brooklyn Library into a 36-story luxury residential tower; a mixed- use tower at 141 Willoughby St., at the intersection of Flatbush Avenue; and by Alloy Development, a proposed mixed-use development that includes two public schools, 900 market-rate and affordable apartment units and commercial space, at 80 Flatbush.

And while the planned office, retail and residential space will recast Downtown Brooklyn in years to come, there have been other visible changes. In June, a Trader Joe’s as well as DeKalb Market Hall had their debuts at City Point. The grocery store chain’s second Brooklyn location and the new all it a sign of times to come. In June, the Jehovah’s Witnesses requested a permit to Cremove the huge “Watchtower” sign that for decades has defined part of Brooklyn Heights’ “We’re at this amazing turning point in skyline. The sign’s planned removal is symbolic of a new era of Downtown Brooklyn as a commercial hub. Downtown Brooklyn where we’re seeing

The Watchtower Building complex, owned by the Jehovah’s Witnesses for decades, was sold a really mixed-use environment.” last year to a partnership of developers for $340 million. Now being marketed as Panorama —Regina Myer, president, Downtown Brooklyn Partnership Brooklyn for its gorgeous views of the Brooklyn IT Bridge, East River and Manhattan, renovations at LIVWRK, and RFR Realty bought another Jehovah

the multi-building mixed-use complex will result in Witness property and put $100 million into a gut market, which has some 40 food vendors, are COATS 35,000 square feet of retail space and 635,000 of renovation of the 1 million-square-foot site, now joining Target, Century 21 and other retail options office space, with the developers hoping to lure a home to Etsy and WeWork. at the massive City Point site. giant anchor tenant with at least 5,000 employees. Downtown Brooklyn’s appeal as a tech hub for With all the development in Downtown Brooklyn, PANTRY “Panorama will mark a shift in what America’s millennial workers, coupled with a low commercial it’s easy to forget that the neighborhood is home to COATS/STORAGE 1,909 – 3,334 RSF best companies expect in an urban office setting,” vacancy rate of around 3%, is fueling this fervent 13 higher education institutions. One of them, New Asher Abehsera, chief executive of Panorama’s rebuilding. Tishman Speyer is trying its hand at its York University’s Tandon School of Engineering, has IT 2 3 4 5 N R co-developer LIVWRK, said in a statement in May first development in Brooklyn: a 620,000-square- been renovating the 500,000-square-foot former ON TOP OF THE announcing the project’s design. foot office tower that will crown the existing Macy’s MTA building at 370 Jay St. Ready by September, it STOR. department store in Downtown Brooklyn at 422 will be a hub for engineering, applied sciences and + Open pantries and layouts + New bike room PANTRY Downtown Brooklyn has long been a highly Fulton Street. The $500 million, 10-story building digital disciplines; and house the school’s Center PANTRY SUITE 504 2,405 RSF desirable residential neighborhood, with multiple is slated for mid-2019 occupancy. Also in the works for Urban Science and Progress. NYU pledged to IT + New Gregory’s Coffee Shop + 12 foot slab heights transportation options that feed into Manhattan. is One Willoughby Square, an office tower of at invest $500 million in Brooklyn by 2022. NYU’s In more recent years, the neighborhood has also least 500,000 square feet and 36 floors planned non-residential owned and leased space in Brooklyn COATS caught the imagination of commercial developers. by JEMB Realty and Forest City Ratner Cos. In will increase from 600,000 square feet to 1.1 announcing the project, which had not yet secured million, nearly doubling its academic presence in SUITE 501 1,909 RSF SUITE 503 2,053 RSF The Downtown Brooklyn Partnership, an alliance an anchor tenant, JEMB called One Willoughby “the the borough. The investment, said the partnership’s PANTRY of businesses and business improvement districts, first speculative ground-up office development Myer, will “transform Downtown Brooklyn just south reports that 10,500 units have been completed, project in Downtown Brooklyn in decades.” of MetroTech Center.”

since 2004, in Downtown Brooklyn. Another 4,500 COATS units are under construction and 5,000 more are IT in the pipeline.

“We’re at this amazing turning point in Downtown Brooklyn where we’re seeing a really mixed-use environment,” said Regina Myer, president of the PANTRY partnership. “This is really new for Downtown COATS Brooklyn. There are developments that show how SUITE 502 3,060 RSF resilient downtown is, with fabulous transportation IT options.” SUITE 505 3,334 RSF

While Downtown Brooklyn has a solid reputation as a great place to live and play, it has been slow to win over global corporations as a work destination. The Panorama Brooklyn project is one of several ROLL RIGHT IN TO DOWNTOWN BROOKLYN’S BEST OFFICE BUILDING WIRED WIRED new developments that aim to change that GOLD GOLD perception. The 739,000-square foot property is owned by a joint venture of CIM Group, Kushner

Companies and LIVWRK. In 2013, Kushner, Trader Joe’s at City Point, Brooklyn, opened June 23, 2017 Jeremy Bier, Vice President WIRED WIRED Rob Hebron, 718-624-0011 x-10, [email protected] 212-216-1722, [email protected] GOLD GOLD Robert F. Hebron, 718-624-0011 x-15, [email protected] Krystyn Gatto, Leasing Associate Bosko Stankovic, 718-624-0011 x-14, [email protected] 212-356-4106, [email protected] slgreen.com

Explore Brooklyn Section B MECH.indd 2 7/6/17 12:32 PM CN018297.indd 1 6/30/17 11:05 AM 16 COURT AT MONTAGUE STREET DOWNTOWN BROOKLYN’S BEST PRE-BUILT SUITES

COATS

PANTRY

COATS/STORAGE 1,909 – 3,334 RSF IT ON TOP OF THE 2 3 4 5 N R

STOR. + Open pantries and layouts + New bike room PANTRY PANTRY SUITE 504 2,405 RSF IT + New Gregory’s Coffee Shop + 12 foot slab heights

COATS

SUITE 501 1,909 RSF SUITE 503 2,053 RSF

PANTRY

COATS IT

PANTRY

COATS SUITE 502 3,060 RSF IT SUITE 505 3,334 RSF

ROLL RIGHT IN TO DOWNTOWN BROOKLYN’S BEST OFFICE BUILDING WIRED WIRED GOLD GOLD

Jeremy Bier, Vice President WIRED WIRED Rob Hebron, 718-624-0011 x-10, [email protected] 212-216-1722, [email protected] GOLD GOLD Robert F. Hebron, 718-624-0011 x-15, [email protected] Krystyn Gatto, Leasing Associate Bosko Stankovic, 718-624-0011 x-14, [email protected] 212-356-4106, [email protected] slgreen.com

CN018297.indd 1 6/30/17 11:05 AM SPECIAL ADVERTISING SECTION OF CRAIN’S NEW YORK BUSINESS

EXPLORE BROOKLYN Only hospital in New York with Top-Rated angioplasty Gibbs said Maimonides is letting others take the lead on running urgent-care centers. The hospital is about Maimonides and cardiac surgery1 to test a model built on a relationship with a group of primary-care doctors who come from the community they serve, who will seamlessly work with Maimonides when patients require more complex care. Only hospital in New York with Top-Ratings in all three Maimonides is partnering with the Coalition of Cardiac 1 Asian-American IPA, or CAIPA, a physician network angioplasty rankings that caters to the many Chinese immigrants in Brooklyn. Maimonides and CAIPA have been renovating a 1,000-square-foot storefront to Only hospital in New create an Express Care Center, ready by the end Surgeons York with signiﬁ cantly of the summer, that will be open from 6 p.m. to midnight. The site will be staffed by Maimonides low mortality rates for doctors for after-hours care. Have Better Mortality Rates emergency angioplasty Brooklyn Hospital Center’s ambulatory care cases1 centers and physician offices also are expanding hours to accommodate patients’ demand for 1 convenient hours, said Dr. Shalom Buchbinder, its than any Hospital in Manhattan In Brooklyn, convenient care is everywhere chief medical officer. Ranked in the top 1% of But the hospital also has a collaboration with U.S. hospitals for heart Urgent-care sites proliferate in the borough’s affluent areas 1 New York State Department of Health ModernMD to operate five sites in medically attack and heart failure 2 U.S. Centers for Medicare & Medicaid Services underserved communities. Another will open on 2 young man walking down Hicks Street in offerings. Northwell Health, through a joint venture Fulton Street, very close to the Flatbush hospital, patient outcomes Brooklyn Heights recently stopped Maria called Northwell Health-GoHealth Urgent Care, in early 2018. ALilly to ask where he could find an urgent- is part of a network of 33 centers in the New York care center for treatment of a large bump on his area. Its Brooklyn site is in Williamsburg, with Representing an investment of several million forehead. Lilly immediately directed him to a site another set to open in Park Slope this fall. dollars, that site will be Brooklyn Hospital’s around the corner on Montague Street.

“That’s how common urgent-care centers have become in this neighborhood. They are ubiquitous and a reflection of the popularity and growth of “We view Brooklyn as a key market the greater Downtown Brooklyn area,” said Lilly, a Brooklyn Heights resident and owner of a strategic for continued expansion of our communications firm. 888.MMC.DOCS Even more facilities are headed to the borough, outpatient network, and urgent predicts Dr. Nedal Shami, chief strategy officer MAIMONIDESMED.ORG at CityMD, an urgent-care provider. The Brooklyn care is a key part of that strategy,” market, he said, “has considerable room for growth.” said Adam Boll, vice president of Indeed, the enviable demographics of brownstone Brooklyn—a high portion of residents who have operations at Northwell Ventures. commercial health insurance, are affluent and employed—are a magnet for urgent-care centers. Brooklyn has at least 62 of them, according to the “We continue to evaluate additional Urgent Care Association of America.

The proliferation of urgent-care centers in the opportunities and locations for borough is driven by consumer preference for convenient hours, especially among Brooklynites future urgent-care centers.” One of only two accredited with families or workers spending long hours in the programs to receive the borough’s new tech and digital businesses. Urgent- care providers look at several factors when they Northwell Health “views Brooklyn as a key market first “co-located with a primary-care practice in Maimonides Outstanding Achievement Award size up a market, including demographics, density, for continued expansion of our outpatient network, adjacent space, with expanded hours for urgent 3 market capacity and retail real estate. and urgent care is a key part of that strategy,” care,” said John Gupta, the hospital’s executive in New York State in 2016 said Adam Boll, vice president of operations at vice president for growth and innovation. He What providers like CityMD see is a market primed Northwell Ventures. “We continue to evaluate calls the model a “hyper-local focus on what is for growth. additional opportunities and locations for future important for the community.” One of only 22 hospitals urgent-care centers.” Cancer Center Founded in 2010 as a single Manhattan practice NYU Langone Medical Center stepped into the nationally to earn a perfect that has grown to 73 sites, CityMD is newly flush Some Brooklyn hospitals are taking a different Brooklyn market for emergency care after the closure score with cash after private equity firm Warburg Pincus approach to offering patients the convenience of Long Island College Hospital. Its major investment bought a majority stake in early June. The equity of after-hours care. That strategy is sensitive to is the NYU Langone Cobble Hill freestanding Earns Outstanding firm said its investment would support CityMD’s the reality that, in some neighborhoods, many emergency department, opened in 2014. It has no expansion “through new site openings and Brooklyn residents are immigrants. At Maimonides plans to operate urgent-care centers in Brooklyn. 3 Fully accredited breast strategic acquisitions and partnerships.” Medical Center, some 45% of residents in its core Achievement Award center4 with breast imaging service area are foreign-born. But the health system is evaluating how to adapt CityMD currently has 10 centers in Brooklyn, to Brooklyn a model it is testing at a Manhattan center of excellence5 with projections to own 15 there within three “The physician-patient relationship has to be ambulatory care site: offering urgent-care services

IO N O N years. The company analyzes a market in terms protected with cultural sensitivity,” said Kenneth within a physician practice, either through extended S C I S A M N of “fragmentation, integrated-health-systems Gibbs, the hospital’s president and chief executive. hours or dedicated spaces at larger sites. The model C M E Of 500+ U.S. hospitals surveyed in 2016, O R

C capacity, and the existing urgent-care center “Urgent care is important in serving the needs could be implemented at one or both of its two big one of only 22 to earn a perfect score 3 Commission on Cancer of the American College of Surgeons Brooklyn multispeciality physician practices in 2018, footprint,” said Shami. of patients as consumers, but urgent-care 3 WITH - N Y COMMENDA TI O N O 3 4 National Accreditation Program for Breast Centers centers tend to be successful for a homogeneous said Andrew Rubin, vice president, clinical affairs and E I A A T plus gold-level commendation R A I T Hospitals also are ramping up their urgent-care population.” ambulatory care at NYU Langone Health System. C C R ED 5 American College of Radiology

Explore Brooklyn Section B MECH.indd 4 7/6/17 12:32 PM Only hospital in New York with Top-Rated angioplasty Maimonides and cardiac surgery1

Only hospital in New York Cardiac with Top-Ratings in all three angioplasty rankings1

Only hospital in New Surgeons York with signiﬁ cantly low mortality rates for Have Better Mortality Rates emergency angioplasty cases1 than any Hospital in Manhattan1 Ranked in the top 1% of U.S. hospitals for heart 1 New York State Department of Health attack and heart failure 2 U.S. Centers for Medicare & Medicaid Services patient outcomes2

888.MMC.DOCS MAIMONIDESMED.ORG

One of only two accredited programs to receive the Maimonides Outstanding Achievement Award in New York State in 20163

Cancer Center One of only 22 hospitals nationally to earn a perfect Earns Outstanding score 3 Fully accredited breast Achievement Award center4 with breast imaging center of excellence5

IO N O N S C I S A M N C M E Of 500+ U.S. hospitals surveyed in 2016, O R

one of only 22 to earn a perfect score 3 Commission on Cancer of the American College of Surgeons

3 WITH - N Y COMMENDATION O 3 4 National Accreditation Program for Breast Centers E I A A T plus gold-level commendation R A I T C C R ED 5 American College of Radiology

CN018298.indd 1 6/30/17 11:25 AM SPECIAL ADVERTISING SECTION OF CRAIN’S NEW YORK BUSINESS

EXPLORE BROOKLYN create the Made in NY Campus. Set to open Sunset Park’s industrial past is now its future in 2020, facilities include a 200,000-square- foot garment manufacturing hub and a Revitalized warehouses bring new businesses to the waterfront neighborhood 100,000-square-foot film and television production facility. The latter addresses a chronic unset Park is sizzling right now, and summer and accessible jobs—and connected to the city shortage of sound studios for the city’s fast- has nothing to do with it. Investment dollars with public spaces and new ferry service.” growing film and TV sector. The campus will have Shave poured into its waterfront industrial sound stages and support space for production, backbone. A ferry service connecting to Wall Street Since 2009, the city has targeted those industrial video and photo shoots, and new-media facilities launched in May, is easing the commute. And with sites with a 20-year plan for economic resurgence. for augmented reality and virtual reality. the revitalization of Industry City as a base for jobs NYCEDC has jurisdiction over Sunset Park’s Industry City is a creative hub of industrial, office in a diverse mix of industries, there is new demand industrial strips: the Bush Terminal, the Brooklyn and retail space for some 350 companies and for luxury housing. Army Terminal, the Brooklyn Wholesale Meat 6,500 workers. The 16-building, 6-million-square- Market and the South Brooklyn Marine foot complex describes its tenant mix as a fusion Terminal. Collectively, the Sunset Park of the “innovation economy with traditional industrial sites accommodate diverse manufacturing and artisanal craft.” industries, among them meat and poultry processing, light manufacturing, In May, Industry City launched Summer Spree, food production, garment making and which, for the first time, opened the complex to the creative businesses. A joint venture led by public seven days a week. There are now weekend Belvedere Capital and Jamestown invested offerings and public spaces, including a miniature more than $200 million in infrastructure golf course, courtyard movies, outdoor bars and a improvements at Industry City, a site at concert series programmed by the Williamsburg Bush Terminal, since 2013. venue, Brooklyn Bowl.

At the Army Terminal, a $115 million “Industry City originally catered to its tenants. upgrade by the city will add 500,000 square Now, with community events, it’s a weekend Live music at Industry City feet of space by September 2017. To lure destination,” said Abigail Palanca, a salesperson shipping to the Marine Terminal—an 88-acre with real estate agent Compass. “Sunset Park’s industrial waterfront has been a site left dormant for years—a $115 million overhaul major source of good, local jobs for generations,” has been generating new traffic from cargo ships Developers have taken note. There is new interest said Julie Stein, executive director of Sunset Park and barges. Last year, a boat from Italy offloaded in commercial space for wine bars and restaurants, at the New York City Economic Development Corp., the giant, 500-ton legs of Staten Island’s New York said Palanca. And in a first for Sunset Park, which has shepherded some $250 million into the Wheel. redevelopment is aimed at the luxury market. Among district. “Sunset Park has emerged as a modern Palanca’s upcoming listings are four gut-renovated manufacturing hub, packed with new companies At Bush Terminal, a $136 million upgrade will townhouses priced at more than $2 million.

Page 6 ½ page content on sunset park and half page ad HITN)

Explore Brooklyn Section B MECH.indd 6 7/6/17 12:32 PM TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM

PUBLIC & LEGAL NOTICES POSITION AVAILABLE

Notice of Formation of 75 East Central, NOTICE OF FORMATION of NOTICE OF FORMATION OF JP Riback, Developer (Citadel LLC – New York, NY) LLC filed with SSNY on 4/4/2017. Lo- Dreamladder, LLC. Arts of Org filed with LLC. Articles of Organization filed with Responsible for dsgn, dvlpmnt, & deploymnt cation: Rockland County. SSNY desig- Secy. of State of NY (SSNY) on the Secretary of State of NY (SSNY) on of new & exist’g high-vol trad’g sys. F/T. Reqs nated as agent of LLC upon whom proc- 12/21/2011. Office location: NY Coun- 3/6/2017. Office location: NEW YORK a Bach’s degr (or forgn equiv) in Comp Sci, ess may be served. SSNY shall mail ty. SSNY designated agent upon whom County. SSNY has been designated as Elec Engnr’g, Math, or rel ﬂd & 2 yrs exp process to Peter Agho 10 Dixwell Road, process may be served and shall mail agent upon whom process against it in the job offr’d or in a professional sftware New City, New York 10956. Purpose: copy of process against LLC to princi- may be served. The Post Office ad- any lawful act or activity. pal business address: 73 Fifth Avenue, dress to which the SSNY shall mail a dvlpmnt role. Must also have 2 yrs exp in the #8B, NY, NY 10003. Purpose: any law- copy of any process against the LLC follow’g: wrk’g in a Linux/Unix environ; dvlp’g ful act. served upon him/her is: 7014 13th in C++, C#, or Java; obj-orient’d analysis & Avenue, Suite 202, Brooklyn, NY dsgn; & sftware dvlpmnt life cycle steps in 11228 The principal business address a ﬁnan srvcs capacity. Exp may be gained of the LLC is: 10 Hanover Square, Apt. concurrently. Resumes: ER/SM, Attn: 8014- 10Z, New York, NY 10005 Purpose: 481, Citadel LLC, 131 S. Dearborn St, 32nd any lawful act or activity Fl, Chicago, IL 60603.

Pine River Capital Management, LP has an opportunity for a Quantitative Analyst at our facility in New York, New York. The primary duty is to support all elements of the company, including risk management, trading, and counterparty management, through data analysis, analytical research, and quantitative model development. This position requires a Master’s degree or equivalent in Finance, Decision Sciences and Engineering Systems, Risk Analytics, Economics, Financial Engineering or related field, plus three (3) years of related experience. Experience must include three (3) years of experience, which may be con- current, in all of the following: 1) developing statistical metrics that facilitate monitoring of differences in performance of loans; 2) developing credit and prepayment models for various residential mortgage sectors; and 3) conducting logistic regression, time series analysis, exploratory data analysis, database programming, and general programming / model development. Must also have demonstrated experience in each of the following: 1) assessment of third party interest rate, prepayment, and credit models for both fundamental and market-implied integrity; and 2) quantification of the various risk exposures incurred by the firm, such as interest rate, mortgage basis, representations and warranties, funding. All experience may be gained concurrently and may have been gained before, during or after completion of the Master’s degree program. If interested apply online at: https://jobs-pineriver.icims.com/jobs/intro.

YOUR AD HERE Contact Joanne Barbieri at 212-210-0189 for classified advertising opportunities.

JULY 10, 2017 | CRAIN’S NEW YORK BUSINESS | 27

P027_CN_20170710.indd 27 7/6/2017 1:18:29 PM GOTHAM GIGS

OPEN MIKE PSYCH: Tarvin believes BY LANCE PIERCE laughter improves the office.

Works like a charm A computer scientist turned stand-up comedian makes humor a tool of the trade

ndrew Tarvin founded his company to save them how to apply those creative and teamwork skills to ANDREW TARVIN folks in the boardroom from boredom, namely professional situations. by teaching ways to use humor in profession- Although he claims he wasn’t a class clown, Tarvin cred- AGE 33 al settings. The inspiration for Humor That its his mom for infusing everyday interactions with puns BORN Mason, Ohio AWorks came to him when he was an IT project manager at and jokes—like renaming hot dogs “cool cats.” He has done RESIDES Crown Heights, Brooklyn Procter & Gamble and a co-worker thanked him for mak- stand-up across the country, including at Comic Strip Live EDUCATION B.S. in computer ing work fun. With 83% of Americans stressed at their job, on the Upper East Side, as well as internationally. “I think science and engineering, Ohio said Tarvin, citing a Harris Interactive statistic, of comedy as math with words: This plus this Comedy is State University his goal is to bring happiness to the office. “ equals laughter,” he said. COMEDY CREDENTIALS Tarvin “It hit me that a small thing like adding math with It also results in a livable income. Tarvin has made more than 1,000 stand- humor could really change the workplace,” words: started his sole proprietorship part time in up appearances around the U.S. he said. This plus 2009 while at P&G and made it full time in INFLUENCES He is a fan of Today Tarvin calls himself a humor engi- 2012. He said he has worked with more than George Carlin and Eddie Izzard but neer and thinks what he teaches can help build this equals 250 clients, including ESPN, General Electric, also admires Ellen DeGeneres. “She proved that you can be rapport, relieve stress and resolve conflicts. laughter Microsoft and PwC. “Accountants are not typ- ” hilariously funny while still being “When you are laughing with someone, you ically the funniest people in the room,” said completely clean.” are on the same side,” he said. Lisa Roth, who works in PwC’s human resources depart- TIME-SAVING TIP Trained as Workplace humor doesn’t have to be laugh-out-loud ment. “He really showed us that humor is something that an engineer, Tarvin is focused on funny to be effective. Simple lightheartedness can be can be learned.” efficiency. “I was even born three enough to brighten an office. As a manager, Tarvin would Tarvin’s revenue comes from delivering keynote ad- weeks early, ” he said. have new team members fill out a Myers-Briggs person- dresses for an average fee of $7,000, training and workshops PUNCH LINE “Forty-seven per- ality assessment—or a quiz that reveals which Star Wars that cost around $4,500, talks and presentations averaging cent of Americans struggle to stay happy. Of course, it’s even worse character they are most like. Tarvin teaches his clients im- $3,500, and other events such as panels and coaching. at Disney World, where statistically prov games, such as having one person make up a word “I left one six-figure job to find another six-figure job,” only 1 out of 7 dwarfs is Happy. ”

BUCK ENNIS and a partner come up with the definition, and shows he said. And that’s no joke. — LISA FERBER

28 | CRAIN’S NEW YORK BUSINESS | JULY 10, 2017

P028_CN_20170710.indd 28 7/7/2017 12:05:00 PM SNAPS

Glass in the grass Guests attending the New York Botanical Garden’s Conservatory Ball could wander the grounds to take in works by Dale Chihuly. The pioneering glass sculptor created several of the exhibition’s bold, colorful pieces, on display through the end of October.

Domenico De Sole, chairman of Tom Ford International, with his wife, Eleanore De Sole, at Janice Savin Williams, co-founder and senior principal the gala, which raised $1.7 million of Williams Capital Group, and her husband, Christopher for children’s education programs Williams, the company’s chairman, CEO and co-founder, at and international plant research. the fundraiser, held at the garden June 1.

Honored for service Better health care for the poor

At its annual Dodge Awards dinner June 7, the YMCA of Greater New York honored Edward Skyler, executive vice president for global affairs at Citigroup, andUrsula Burns, former chairwoman and CEO of Xerox Corp. Cas Holloway, global head of technical operations for Bloomberg, and Dan Doctoroff, CEO of Sidewalk Labs, also attended the event, which raised $1.6 million.

Primary Care Development Corp., which provides financing and training to improve health care in low-income communities, held a gala June 5 that raised $865,000. Dr. L. Reuven Pasternak, CEO of Stony Brook University Hospital; Louise Cohen, CEO of PCDC; and Dr. Herminia Palacio, deputy mayor of health and human services, were among the 650 guests.

Robert Lieber, executive managing director of C-III Cap- ital Partners; Sharon Greenberger, president and CEO of the YMCA of Greater New York; Justin Skala, Event honoree COO of North America, Harvey Sigelbaum, Europe, Africa/Eurasia senior adviser to The and global sustainability Riverside Co., and for Colgate-Palmolive; David Manko, a part- and actor Christopher ner at Proskauer Rose, Jackson at the party, at during the fundraiser, Cipriani 42nd Street. held at Pier 60 at Chelsea Piers.

YMCA OF GREATER NEW YORK, BFA.COM/JOE SCHILDHORN NEW YORK, BFA.COM/JOE YMCA OF GREATER SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO: [email protected].

JULY 10, 2017 | CRAIN’S NEW YORK BUSINESS | 29

P029_CN_20170710.indd 29 7/7/2017 9:02:16 AM FOR THE RECORD*

NEW IN TOWN MOVES AND EXPANSIONS June 20 in a transaction 11-story building at West ■ Oasiq inked a seven-year was about $260 per square worth $974,712. He now 30th Street. The asking rent lease for 5,000 square feet foot. The landlord, David ■ DeKalb Market Hall ■ Small Axe Peppers holds 6,933,732 shares. was $65 per square foot. at 42-44 Greene St. The Irving, represented himself. 445 Albee Square West, 5-14 51st Ave. Adams & Co. represented outdoor home furniture Thor Retail Advisors repre- Brooklyn Long Island City ■ Moody’s Corp. (MCO-N) the subtenant. Colliers designer plans to move its sented the tenant. Downtown Brooklyn’s first The brand behind the com- Linda Huber, CFO, sold International represented showroom from 242 E. 58th food hall has offerings munity garden–produced 27,395 shares of common both the sublandlord, St. into the below-grade ■ Togas House of Textiles from about 40 vendors in a hot sauce introduced a new stock at prices ranging from Accela Inc., and the land- space of the 5-story build- signed a lease for 2,100 60,000-square-foot space. serrano pepper–based fiery $119.50 to $122.05 per lord, 3 W. 35th Street Co. ing, between Grand and square feet at 212 Fifth Ave. Among the familiar names flavor, Queens 7 Green- share from June 14 to June Broome streets. The owner, The textile designer plans are Ample Hills Creamery, market Hot Sauce, at the 19 in transactions worth RETAIL Zar Property, was repre- to open its first city store Forager’s Market, Katz’s Deli Queens Botanical Garden. $3,308,588. She now holds ■ CVS Pharmacy renewed sented in-house. Compass on the ground floor and and Guss’ Pickles. The Queens 7 hot sauce also 64,138 shares. its lease for 10,000 square represented the tenant. lower levels of the build- will hit grocery store shelves feet at 350 E. 82nd St. It The asking rent was $42 per ing, at the corner of West ■ Fatbird across the city in the fall. will continue to operate out square foot. 26th Street. Thor Retail 44 Ninth Ave. REAL ESTATE of the ground floor of the Advisors brokered the deal The world’s first female ■ Trader Joe’s building, known as Welling- ■ Virgil Abloh, founder of for the landlords, Madison Iron Chef, Cat Cora, 445 Gold St., Brooklyn COMMERCIAL ton Tower. The asking rent designer brand Off-White, Equities and Thor Equi- debuted a 150-seat, The California-based ■ Helen Keller Services for for the 10-year deal was agreed to take a five-year ties. Keller Williams NYC Southern-themed restau- grocery chain opened its the Blind signed a 30-year $225 per square foot. The lease for 2,500 square feet at represented the tenant. The rant in the Meatpacking second Brooklyn location, lease for 46,000 square landlord, RFR, represented 51 Mercer St. Abloh plans asking rent for the ground District. Sweet tea vodka next to the DeKalb Market feet at 180 Livingston St., itself. The tenant dealt to open his first retail store floor was around $350 per Jello shots, anyone? Hall in City Point. Brooklyn. The nonprofit, directly with RFR. in the city. The asking rent square foot. ■ which provides services ■ Injury Lawyers of Illinois for the visually impaired, 275 Madison Ave. BANKRUPTCIES plans to relocate from 57 The Chicago-based law firm Willoughby St. into part of DEALS ROUNDUP owned by attorney Tony ■ Angelita Transit Inc. the first floor and all of the Kalogerakos opened its first 6814 Fifth Ave., Brooklyn second floor of the building, TRANSACTION SIZE BUYERS/ TARGET/SELLERS [IN MILLIONS] INVESTORS TRANSACTION TYPE city offices, in Midtown. The The taxi company filed for between Smith and Hoyt New York office will focus Chapter 11 bankruptcy June streets. Newmark Knight Rice Energy Inc. Firefly Value $10,670.2 EQT Corp. SB M&A Partners LP (Manhattan); solely on catastrophic and 14. The filing cites estimated Frank represented the land- Foundation PA Coal Co. LLC; serious personal-injury and assets of $0 to $50,000 and lord, Thor Equities. CBRE Lone Pine Capital LLC; wrongful death cases. liabilities of $1,000,001 to represented the tenant. The Millennium Management LLC (Manhattan); NGP Energy $10 million. The creditor asking rent was in the high Capital Management ■ LaunchLabs with the largest unsecured $40s per square foot. 430 E. 29th St., 14th floor claim is Medallion Financial Pattern Energy Group 2 LP $784.0 Individual investors; GCI Pattern Energy Group Inc.; Real estate investment trust Corp., owed $754,495. ■ Greystone Management Riverstone Holdings LLC (Manhattan) firm Alexandria Real Estate Solutions signed a five-year Novadaq Technologies Inc. $700.6 Stryker Corp. SB M&A Equities launched a biotech ■ Joe’s Place of the Bronx renewal of its lease for ArrowMark Colorado Holdings LLC; incubator in Kips Bay. 1841 Westchester 7,400 square feet at 505 Consonance Capital (Manhattan); The innovation lab offers Ave., Bronx Eighth Ave. The real estate Gagnon Securities LLC (Manhattan); JPMorgan Investment Management Inc. startups office space, shared The Latin American restau- management company will (Manhattan); JPMorgan Asset Management equipment and opportuni- rant filed for Chapter 11 continue to occupy part (Europe) S.a.r.l.; JPMorgan Asset ties for mentorship and seed bankruptcy June 2, citing of the third floor of the Management (U.K.) Limited; JPMorgan funding. It is also home to estimated assets of $50,001 25-story building. Newmark Chase Bank, National Association about 13 life-science start- to $100,000 and liabilities of Knight Frank represented Enhanced oil recovery assets $600.0 Occidental Petroleum SB M&A ups, whose projects include $1,000,001 to $10 million. the tenant. The landlord, in the Permian Basin, Corp. (Unknown Hess Corp. (Manhattan) minority stake) cancer vaccines and 3-D No creditors with un- Newmark Holdings, was printing of live tissue. secured claims were listed. represented in-house. The NextEra Energy Partners LP $550.0 BlackRock Inc. (Manhattan); GCI asking rent was between First Reserve Corp.; KKR & Co. LP (Manhattan) ■ Little Alley ■ Raj-Rod Inc. $45 and $48 per square foot. 550 Third Ave. d/b/a Coliseum Gym CareerBuilder LLC (75.7%) $475.0 Apollo Global Management SB M&A Knight Ridder Digital Inc.; TEGNA Inc.; LLC (Manhattan); Ontario and Fitness Center ■ Yishu He and Yuchun MicroOffice Solutions Tribune National Marketing Co. Teachers’ Pension Plan Board Cheung named their 75-09 71st St., Queens agreed to take a sublease Murray Hill restaurant The fitness company filed for 7,344 square feet at Vice Media LLC (Brooklyn) $450.0 TPG Capital LP GCI after long tang, the network for Chapter 11 bankruptcy 535 Fifth Ave. The Best Doctors Inc., BBH Capital $440.0 Teladoc Inc. (N.Y.) SB M&A of alleyways that weave June 14. The filing cites co-working space pro- Partners (Manhattan); Eastward Capital through Shanghai. estimated assets of $0 to vider—with offices in the Partners LLC; Echo Health Ventures $50,000 and liabilities of city, Chicago and Boston— Bonobos Inc., Accel Partners; $310.0 Wal-Mart Stores Inc. SB M&A ■ Mumbai Masala $50,001 to $100,000. No plans to occupy the entire Coppel Capital SA de CV; Felicis Ventures; Indian Grill creditors with unsecured 16th floor of the 36-story Forerunner Ventures; Glynn Capital 1768 Amsterdam Ave. claims were listed. building between East 44th American Realty Capital $134.9 Healthcare Trust Operating SB M&A The most expensive and East 45th streets. The Healthcare Trust III Inc. Partnership LP (Manhattan) dish on the menu at this asking rent for the five-year Hamilton Heights Indian STOCK EXCHANGES deal was $45 per square Selected deals announced for the week ending June 22 involving companies in metro New York. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing restaurant costs $17.95. The foot. MHP Realty repre- shares of a company without the participation of a financial buyer. GCI: Growth capital invest- menu includes vegetarian ■ Coty Inc. (COTY-N) sented the subtenant. Evo ment represents new money invested in a company for a minority stake. SOURCE: CAPITALIQ and vegan options. The board director, Peter Real Estate brokered the Harf, sold 26,500 shares of deal for the sublandlord, ■ StubHub common stock for $19 per National Community 1412 Broadway share June 16 in a transac- Reinvestment Coalition. GET YOUR NEWS ON THE RECORD * The online ticket reseller tion worth $503,447. He To submit company openings, moves or real estate deals, or to receive further information, has opened a brick-and- now holds 4,509,719 shares. ■ Sociomantic Labs signed ABOUTemail [email protected] SECTION . mortar location in Times a three-year sublease for For the Record is a listing to help businesspeople in New York find opportunities, potential Square. It is conceived as a ■ Medley Capital Corp. 4,326 square feet at 276 new clients and updates on customers. Bankruptcy filings from the eastern and southern welcome center, with events (MCC-N) Fifth Ave. The Berlin-based districts of New York are listed alphabetically. Stock transactions are insider transactions listings, artist meet-and- Brook Taube, CEO, sold advertising technology at New York companies obtained from Thomson Reuters and listed by size. Real estate greets and even a desig- 153,711 shares of common company plans to occupy listings are in order of square footage. nated selfie zone. stock for $6.34 per share the eighth floor of the

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Talking points assers-by in need of a quick break from the bustle of Times Square can journey to another country through one of the phone booths newly installed in its northern triangle—or at least Pimagine the trip. An interactive art exhibit at West 46th Street and Seventh Avenue lets visitors this summer listen to the oral histories of immigrant New Yorkers. Afghan-American artist Aman Mojadidi, with funding from the Times Square Alliance’s arts program, inter- viewed residents for more than a year and compiled 70 immigrant tales that range from two to 15 minutes. e installation, titled Once Upon a Place, gives new meaning to its location’s reputation as the Crossroads of the World. “ e experience of stepping into a phone booth allows one to be in a private enclosure while also being on an in- credibly busy street,” said Debra Simon, the arts program’s director. “ e juxtaposition of those things while you’re listening to these moving oral histories makes for a very meaningful example of how public art can engender a lot of conversation.” — ALEXANDRA SEMENOVA BUCK ENNIS

JULY 10, 2017 | CRAIN’S NEW YORK BUSINESS | 31

P031_CN_20170710.indd 31 7/7/2017 6:03:12 PM TUESDAY, SEPTEMBER 26, 2017 Cipriani 42nd Street 12:00 P.M. – 2:00 P.M. 110 East 42nd Street

Join Crain’s and this year’s 50 Most Powerful Women in New York at our celebratory luncheon. RESERVE YOUR SEAT TODAY: crainsnewyork.com/events-mpw2017

EARLY BIRD PRICING*: $279 for individual ticket(s) $2,790 for table(s) of ten $6,OOO for table of 10 guests + journal ad *Early bird pricing ends Monday, July 17, 2017. You must be pre-registered to attend this event. No refunds permitted.

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