Before Pact, Teachers Gave to Mayor's Group the City Job That Nobody Wanted

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REPORT MADE IN NY City chefs are going loco for locavore fare CRAIN’S® P. 13 NEW YORK BUSINESS

VOL. XXX, NOS. 29, 30 WWW.CRAINSNEWYORK.COM DOUBLE ISSUE JULY 21-AUGUST 3, 2014 PRICE: $3.00

BY ANDREW J. HAWKINS

The city’s taxi industry,after decades of dominance and surging medallion values, faces more threats than ever before: a mandate to buy a vehicle that owners despise, a requirement to make half the fleet Fare fight! handicapped-accessible, and the introduction of popular green cabs. Now two deep-pocketed Silicon Valley startups, Uber and Lyft, are Yellow used to be the king of causing special consternation. User-friendly Uber has poached drivers and won ridership and revenue. Lyft, meanwhile, wants ordinary New cabs. Not anymore. Green Yorkers to be able to use their cars to ferry people across town. The influx of competition has forced cab and black-car owners to re- taxis, Lyft, Uber, apps. The examine their businesses while leaning heavily on government regula- tors to keep the upstart startups in check. buck ennis, getty images road to riches just hit traffic See TAXIS on Page 26 The city job that nobody wanted Before pact, teachers Care to be the new buildings commissioner? Neither did they gave to mayor’s group Chandler, an assistant vice presi- housing and job-creating construc- BY DANIEL GEIGER dent for facilities at Hunter College, tion underway.” was named commissioner of the In fact, the very complexity of His nonprofit got The AFT’s donation, on April 9, More than six months after he took Department of Buildings. the job and the heavy workload that was the largest of $1.76 million given office—and hours before departing “The stakes of this work are in- goes with it—especially now, as $350K from union as of June 30 to de Blasio-affiliated for a 10-day family vacation in credibly high,”said the newest com- construction activity in the city during contract talks nonprofit Campaign for One New Italy—Mayor Bill de Blasio stepped missioner in a statement, noting ramps up to new heights—is what York since it was founded after the to the microphones in City Hall on that the department’s work extends made the post so difficult to fill. A mayor’s election last November. the afternoon of July 17 to an- from “making sure New Yorkers’ long list of top candidates passed on BY CHRIS BRAGG News of the timing of the teach- nounce he had filled the last major homes and workplaces are safe” to the job,including Robert Benazzi,a ers’ union gift raised questions vacancy in city government. Rick helping “get more affordable- See FILLING on Page 27 Less than a month before Mayor among good-government organi- Bill de Blasio struck a contract deal zations about the ability of outside

30 THE LISTS with the United Federation of interests to advance their agendas

5 Teachers, its parent union, the before the city by supporting a lob- CoStar’s top Manhattan office American Federation of Teachers, bying arm of the mayor. P. 22 leases gave $350,000 to a nonprofit group “It’s an awfully large donation to Real Capital Analytics’ top that is run by de Blasio advisers and make in the final stages of labor ne- property sales P. 25 lobbies on behalf of the mayor’s pri- gotiations,” said Dick Dadey, exec- orities,newly released records show. See UNION on Page 27 NEWSPAPER 71486 01068 0 20140721-NEWS--0002-NAT-CCI-CN_-- 7/18/2014 6:00 PM Page 1

EDITOR’S NOTE

Bud wiser FYICRAINSNEWYORK.COM

We scheduled our first newsroom meeting on how Crain’s should Paid sick days cover New York state’s newest legal business—medical marijuana—for kick in, with fanfare exactly 4:20 p.m. Good thing, since we needed the extra 10 minutes to ayor Bill de Blasio was get past the workplace awkward- among the 1,400 j.andrew hawkins ness of trying to sound “with it” volunteers citywide who spent the morning of July 16 handing out informational fliers Glenn Coleman M without sounding like one might to commuters.The occasion? Making the public aware that as of July 30 tens of thousands of know way too much about what workers would be able to take sick days accrued since the paid-sick-leave law took effect April 1. remains an illegal drug in these United States.Turn ¶ The mayor, holding forth from a Brooklyn subway platform, told commuters that the law would off that Grateful Dead ringtone on the cellphone bring “a little more economic security when so many are still struggling.” ¶ The legislation, and open with something savvy: “So, what’s up with however, has created plenty of uncertainty for businesses struggling to figure out how to mesh the the kids and the Mary Jane these days?” Cold, mortified law with practical considerations. “It’s been a little bit crazy, to say the least,” said Carolyn stares. “Heh. Guess it’s been a looong time since college.” Richmond, an attorney who represents hospitality businesses. “As we predicted, there’s been a lot of It turns out, after riffing ’round the room, there are confusion.” ¶ The legislation mandates that all business with five or more employees provide at least more than 2,300 street terms for various drugs or five days of leave for each worker annually. Businesses with fewer than five workers must grant five drug activity, according to the White House Office unpaid days. ¶ But the Department of Consumer Affairs has yet to issue final regulations explaining of National Drug Control Policy. We scanned some the nuances of the law, leaving business owners to interpret it for themselves. For instance, the law marijuana entries before settling on a new favorite: is vague on how much notice employees must give to take a sick day.Workers can take time off in “goblet of jam,” which etymologically sounds like a four-hour increments, making shift-swapping difficult. ¶ Though employers must comply with Harry Potter-esque stoner’s silly stumble over the the law, businesses with between five and 19 employees will have a grace period until September old-school “ganja,” but of course I wouldn’t know before the department can issue fines for violations. —chris bragg about these things.Then we got to work. We soon LIRR STRIKE AVOIDED. After weeks of group agreed to pay $7 billion in fed- realized that New York’s recent legalization of on-and-off negotiations,the Metro- eral and state fines and consumer re- HOORAY! medical marijuana sparked so many regulatory and politan Transportation Authority lief to resolve allegations that it AFTER CAPTURING 1.5 million viewers financial questions—and potential opportunities for and the unions representing Long knowingly sold shoddy mortgages to on YouTube this past year, Brooklyn boy Island Rail Road workers reached an investors in 2006 and 2007. The band Unlocking the Truth scored a $1.8 million Sony record deal. the entrepreneurially minded—that Crain’s had to agreement over labor contracts, bank admitted it ignored warnings convene a gathering. And so: “The Business of Pot: averting a strike that would have af- that some of the loans had under- The Stakes Are High,” to be held Sept. 23 from 8:30 fected 300,000 daily commuters. writing defects. Meanwhile, Bank of The contract calls for a 17% raise America said it will pay American a.m. to 10 a.m. at John Jay College of Criminal over six and a half International Group Justice. Crain’s Senior Reporter Aaron Elstein will years, a compromise ‘You want to $650 million to settle lead a distinguished panel through the new law’s for both sides. The legal disputes over implications for business and New York’s economy. deal took place after bring us back defective mortgage- Gov. Andrew Cuo- backed securities. … OY VEY! John Jay President Jeremy Travis and hydroponics mo intervened in ne- to the ’80s. The TECH RIVALS UNITE. entrepreneur Derek Peterson of publicly traded MUR- GOOGLE STREET VIEWS unearthed more gotiations. … bad days of the Apple and IBM have than 1,000 gas leaks on Staten Island. Terra Tech are the first panelists to confirm their DOCH PURSUES TIME teamed up to create participation, with more to follow. Join us for an WARNER. Media squeegee men, business apps and mogul Rupert Mur- sell Apple’s iOS enlightening look at a budding New York industry. doch will not be the rampant products to corpo- Tickets are $80 each. Call (212) 210-0739 to order. spurned. Analysts crime and leg rate customers. The said Mr. Murdoch’s companies hope 21st Century Fox warmers’ IBM’s data and ana- THIS WEEK IN CRAIN’S will increase its $80 —Political satirist Stephen lytics experience will billion offer to buy Colbert, to Mayor complement Apple’s Bill de Blasio during his IN THE BOROUGHS------3 Time Warner to $91 design expertise.The billion. Mr. Mur- appearance on The first group of apps of eBay’s website. Eventually, Sothe- IN THE MARKETS------4 doch is particularly Colbert Report will be released in the by’s will hold online-only auctions. THE INSIDER ------6 keen on getting his fall in conjunction The partnership will help Sotheby’s hands on HBO, with Apple’s new expose its artwork to eBay’s 145 mil- OPINION ------10 which he values at $20 billion. … mobile operating system, iOS8. … lion customers.Terms of the partner- FORBES IS SOLD. MORE APPLE. STEVE HINDY ------11 A Hong Kong- BlackRock co-founder ship were not disclosed,but eBay will based investor group purchased a Sue Wagner will join Apple’s board receive a commission from each sale GREG DAVID------11 majority stake in Forbes Media,con- of directors, replacing longtime di- on the site. … R.I.P. ELAINE STRITCH. REPORT ------13 cluding a sale process that began late rector Bill Campbell. In 2011, Ms. The brash Broadway legend died of last year in a deal reportedly valued at Wagner was named one of Crain’s natural causes at the age of 89 in her CLASSIFIEDS ------18 $475 million.The Forbes family will Most Powerful Women. … PICASSO home in Birmingham, Mich., where THE LISTS ------22 retain a “significant ownership MEETS THE WEB. Auction house she retired in 2013 after about 70 GOTHAM GIGS stake.” Terms were not disclosed. … Sotheby’s will begin streaming its years of performing in New York NEW YORK, NEW YORK ------29 Ben Mosner carries on a MORTGAGE PROBES SETTLED. Citi- New York auctions on a new section City. —emily laermer family tradition. P. 7 SOURCE LUNCH------30 (SEE PAGE 27) CORRECTIONS STORIES TO WATCH vol. xxx, nos. 29, 30, july 21, 2014—Crain’s New York Business (ISSN 8756-789x) is published weekly,except for double issues the weeks of June 23,July 7,July 21,Aug.4,Aug.18 and Dec. 22, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: July 22: Verizon July 23: State’s July 24: Hearing July 30: BNP Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, reports second- proposed virtual- to approve Paribas’ $2.24 MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one quarter earnings. currency rules procedure for billion civil year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved. open for public Crumbs’ penalty due to comment bankruptcy auction New York state

2 | Crain’s New York Business | July 21, 2014 20140721-NEWS--0003-NAT-CCI-CN_-- 7/18/2014 7:06 PM Page 1

IN THE BOROUGHS BROOKLYN Culture zone fuels biz growth Landlords, eateries, shops reap gains of downtown arts district

BY CARA S. TRAGER FRESH PERSPECTIVES: Ricardo Garcia-Amaya, Ella Gorgla, Harlyn With a veritable forest of residential Pacheco, Courtney towers either rising or recently Williams and Sulaiman opened in and around downtown Sanni are tapping into markets ignored by others. Brooklyn, making any one of them stand out in the eyes of tenants can be tough. At 66 Rockwell,a 42-story property with 326 apartments,that effort Minority tech founders includes pitching amenities such as an 8,000-square-foot outdoor space on the fourth floor, with a Zen garden and grills for barbecuing. But to clinch the deal with seek VC connections prospective tenants, the developer, the Dermot Co.,will dig deeper and

buck ennis chip in a one-year membership in the Brooklyn Academy of Music. tech and it’s a whole different ballgame.” And why not? The famed 153-year- Black and Latino entrepreneurs push an insular Black and Latino entrepreneurs are a small old institution is 66 Rockwell’s subset of Silicon Alley, where 83% of teams get- neighbor in the burgeoning Brook- and often risk-averse industry in new directions ting seed and Series A money are all white, ac- lyn Cultural District,which features cording to 2010 research from CB Insights,with more than 50 other arts organiza- Garcia-Amaya, whose company, DonorTap, the all-white teams receiving a higher median in- tions ranging from glass-making BY JUDITH MESSINA uses data to help nonprofits raise money. vestment from venture capitalists. studio UrbanGlass to contempo- It’s a place he’s gotten to by stepping beyond Minority-led startups are addressing hot sec- rary-art and performing-arts group In a city that is 27% Latino and growing, Ricar- his Latino roots. “Within my immediate Latino tors like crowdfunding, fashion, finance and ed- BRIC. do Garcia-Amaya is a rarity. He’s a tech entre- community, there are no mentors, especially in ucation. Some are serial entrepreneurs or accel- More than a decade after its Giu- preneur who founded a venture-capital-backed tech in early stage,” Mr. Garcia-Amaya ex- erator alumni. Several are raising seed rounds or liani-era conception, the cultural startup. plained. “In fact, forget about tech; just early- angel money. Like all entrepreneurs, they sweat district, an area straddling Fort “I find myself at the forefront,” said Mr. stage investment is extremely difficult.Throw in See MINORITY TECH on Page 28 See CULTURAL on Page 12 Revenue, labor woes have STATS AND THE CITY by Nicholas Wells MANGIA! New York’s Restaurant Week, now in its 23rd year, runs from July 21 to Aug. 15. For $25 and $38, New Yorkers can enjoy three-course lunches and Met Opera singing the blues dinners, respectively, at some of the city’s finest eateries. NUMBER of establishments participating in this summer’s nant.The number of Met moviego- its 15 unions. Many observers think 314event, a 7% increase from last year High-def theater ers for the season ended in May was a strike or lockout will occur, which broadcasts fail similarly sluggish. Meanwhile, at- could further damage the Met’s NUMBER of participating restaurants tendance at the Lincoln Center shaky finances. located outside Manhattan—three in to boost company’s opera house fell 17.5% in the five The broadcasts’ results are likely 4Brooklyn and one in Queens sluggish finances years ended in July 2013, while box- to be used as a weapon by both sides during negotiations. The contracts PORTION of participating are set to expire on July 31, and talks 23%restaurants featuring New BY THERESA AGOVINO Labor costs so far have been acrimonious. The American cuisine, a larger share than for Met has filed two unfair-labor- any other style The Metropolitan Opera’s intro- make up 67% practice charges (one was dropped) duction of live broadcasts beamed against one union, the American AVERAGE amount into movie theaters worldwide was of the Met’s Guild of Musical Artists, which spent per person $48.56on dinner in NYC last year, $8.03 more an innovation that was supposed countered with two against the Met. than the national average to not only generate much-needed operating budget Met General Manager Peter revenue, but also introduce arias Gelb has cited the HD broadcasts’ NUMBER of people and librettos to viewers beyond revenue plateau to bolster his posi- employed by the company’s mature New York tion that the opera must cut costs. 277Krestaurants and bars in NYC this past audience. He notes that union labor accounts June, up 5% from June 2013 That strategy, however, has hit a office receipts were down 4%, to for two-thirds of the opera’s $327 flat note. Last year, profits from $89.3 million, in the same period. million operating budget, and that Sources: NYC & Company, RESTAURANTS added to the Restaurant Week, Zagat Surveys, Restaurant Week, Zagat Surveys, New York City Zagat guide in the high-definition broadcasts fell Those numbers, and the Met’s he is looking for members to accept NYS Department of Labor 111 10.5%, and for the three seasons deficit, are among some of the hard work-rule and benefit changes to newscom 2013, 7% fewer than in 2012 ended in May 2013,revenue and au- realities facing the company as it at- save the institution about 17% a year. ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY dience growth have remained stag- tempts to renegotiate contracts with See METROPOLITAN on Page 28

July 21, 2014 | Crain’s New York Business | 3 20140721-NEWS--0004-NAT-CCI-CN_-- 7/18/2014 6:03 PM Page 1 IN THE Coming to a corner near you: MARKETS digital sidewalks from Verizon by Adrianne Pasquarelli

A new technology izon’s vice president of national op- seams will be clearly marked, that erations and an architect of the the new ducting material can with- could speed rollout FiOS rollout. “And it creates flexi- stand blows from a shovel or pick, bility in how we do things.” and that the ducts’ location below of FiOS service via Manhattan-based Verizon first the pavement will protect them dur- proposed the idea two years ago as ing sidewalk repairs. tiny cuts in the curb an alternative to excavating the Still, obstacles remain—namely street. The telecommunications gi- permission from building owners. BY MATTHEW FLAMM ant recently cleared the last administrative hurdles with city agencies, Logistical challenge The practice of ripping apart city and on July 11 began using the tech- “What it doesn’t solve is the need streets to run fiber-optic cable to nology to connect FiOS to a cluster for private-property permissions,” homes and businesses may be on its of South Bronx apartment build- Mr.Levendos said.“I can have all the way to becoming a thing of the past. ings. It began work July 17 to con- flexibility in the world for how I’m Verizon has begun using a tech- nect another group of homes in the going to get from the public right- nology it pio- Fordham section of the borough. of-way up to a building, but if I don’t neered with They are the first of approxi- have permission, I can’t go in.” Corning to con- mately 30 locations that have been Not only is it sometimes difficult HIGH-END$15K nect its FiOS selected for microtrenching across to get permission from landlords, ESTIMATE of network through all the boroughs except Staten Is- customer demand can be scatter- buck ennis microtrenching construction cost, narrow cuts in land, which has not been included shot. That makes the logistics of compared with the seams of because most of it has already been bringing FiOS to buildings a chal- $30,000 the sidewalks. Corn- wired aboveground via poles. lenge.To solve that riddle, the com- traditional way ing helped devel- Running a fiber-optic cable from pany is looking at ways to “aggregate For teens, retailer op the extra-thin a manhole to a midblock building the demand,” Mr. Levendos said, and is fiber-optic strands that Verizon runs traditional way—with earthmovers in discussions with the Department through hardened plastic ducts set and other heavy machinery—often of Information Technology & goes out of fashion beneath the seam between the side- takes several weeks and costs well Telecommunications, the city walk and the curb. over $30,000. Microtrenching— agency that oversees its franchise, The construction process, known with saws designed for the cluttered about adjusting its approach. t’s back-to-school season for retailers, and the graphic- as microtrenching, is a cheaper, New York City streetscape—can re- Superstorm Sandy and Hurri- T-shirt and jean sellers that cater to fickle teens might quicker way to bring broadband duce construction time to a day and cane Irene caused the company to already be getting detention. Grappling with slimmer down that “last mile”:the distance be- the cost to $10,000 to $15,000. miss its original June 30, 2014, I tween the fiber “backbone”and into a One veteran New York City con- deadline for completing the fiber mall traffic, unstoppable fast-fashion giants like Forever 21 building. The process could make it tractor warned that fiber-optic ca- backbone, as called for in its 2008 and H&M and all-too-few must-have clothing trends, many economical to hook up a single, mid- bles installed through microtrench- franchise agreement. Verizon ex- teen-oriented stores are foundering. block brownstone, for instance. ing are more vulnerable than those pects to finish building out its fiber- Aéropostale Inc. “It’s an order-of-magnitude set inside deeper, traditional con- optic network across the five bor- Local hero , a chain known for its change,” said Chris Levendos, Ver- duits. But Verizon said that its oughs in the coming months. Ⅲ inexpensive wares, is especially troubled. On July 14, the company’s share price sank to a 52-week low of $3.15, down 80% from its August 2013 high. For the quarter ended May 3, Aéropostale reported a net loss of $84 million, as sales fell 12% from the year-earlier period, to $396 million. Business Breakfast Forum: Even more troubling, the com- the bankrupt Coldwater Creek, pany reported an 18% drop in e- agreeing to pay nearly $300,000 for commerce revenue, a decline re- leases on a trio of sites, including flecting the changing tastes of the one in Riverhead, L.I. chain’s core customer.Today’s teens Hope soared among Aéro- William J. Bratton are buying elsewhere. postale investors recently on specu- The only consolation might be lation that Sycamore Partners, Police Commissioner, City of New York that Aéropostale’s direct competi- which had given the chain a $150 tors— Abercrombie & Fitch and Amer- million line of credit in the spring ican Eagle Outfitters—are also strug- to keep it afloat, might be planning gling. They have also posted sales to go further and buy it out. Those declines and seen their stocks fall, expectations died when the pri- Photo Credit: Buck Ennis by 20% and 45%,respectively,in the vate-equity firm opted instead to past 12 months. take a stake in clothier Express. “Although we’ve seen a very “There’s no reason for Sycamore The Police Commissioner will discuss: Wednesday, September 10, 2014 slight improvement of some store to go in at this point if there are still The Roosevelt Hotel traffic for teen retailers, it’s being further declines in sales [at Aéro- •How ﬁghting crime has changed 45 East 45th Street, New York, NY driven by promotional activity,” postale ahead],” said Ms. Duval. said Rebecca Duval, a retail analyst One solution for the waning la- under a progressive mayor 8:00 a.m. - 8:30 a.m. Networking Breakfast at BlueFin Research Partners. “So bel could be to cut its losses by re- 8:30 a.m. - 9:30 a.m. Program any sales we are seeing are at a cost, ducing store counts. Already, •Whether the NYC media covers $125 for individual ticket(s). and the cost is margin.” Aéropostale is in the process of police issues fairly $1,250 for table(s) of ten. In order to stanch the bleeding, shuttering 125 of its 150 shops for Aéropostale last year began adding children, called P.S. From Aéro- •Why crime plunged but poverty didn’t more trendy, fashion-forward postale. items, stocked between its tradi- Because the parent brand fea- •The past and future of urban policing You must be pre-registered to attend this tional sporty tops and denim cut- tures a whopping total of more event. No refunds permitted. offs. But analysts say there was not than 900 stores—one of the high- enough marketing behind the push est counts in the industry—it still For more information, contact Adrienne Yee at 212-210-0739 or email to persuade shoppers to enter its has plenty of room to trim. The crainsnewyork.com/events-brattonforum [email protected]. stores. The retailer declined to chain’s 19,000-square-foot Times comment. Square flagship (photo above) is a For sponsorship information, contact Sponsored by: In contrast, fast-fashion players prime example. It carries an annu- Joanna Harp at (212) 210-0278 or known for their cutting-edge styles al rent of $10 million for a location [email protected]. are growing. In early July, Forever that does little to attract a genera- 21 successfully bid on a handful of tion of customers used to shopping store locations formerly leased by with clicks. Ⅲ

4 | Crain’s New York Business | July 21, 2014 20140721-NEWS--0005-NAT-CCI-CN_-- 7/18/2014 2:09 PM Page 1

Brewers’ fight over disposal rules coming to a head

most of it to landfill. like piles,spitting out a flaky plant fer- Beer makers say regs “We’re below the threshold tilizer 18 hours later that is lighter and on grain byproduct where it’s viable [to get hauled away cheaper to haul and won’t turn sour. to farms],” Mr. Long said. Good stuff in there SEE how Brian Dwyer and other brewers avoid getting swamped in wet grain at will hurt business He believes, however, that he may CrainsNewYork.com/video. have found a solution—one that “We’ve tested it and know it has could also help breweries generate valuable nutrients,” said Laura BY KEN CHRISTENSEN revenue in the process. In July, Mr. Rosenshine,U.S.project manager at The New York City Brewers Castagna of Bridge and Tunnel Long’s company partnered with a Global Enviro. “The long-term Guild has had discussions about cre- Brewing said he’d sign on.“With this In a back room at SingleCut Beer- Norwegian firm, Global Enviro, and plan is to create a sellable end prod- ating a depot-like destination for all brewery, it feels like I’m always giv- smiths, Brian Dwyer lodged a installed an on-site machine that uct, but we’re still building up our spent grain citywide, Mr. Long said. ing stuff away,” he said. “And my shovel into a pile of steaming barley grinds and dehydrates the oatmeal- volume to make that happen.” If he can turn waste into revenue,Mr. wife’s always ripping me for it.” Ⅲ and mopped his sweaty brow. “It’s not easy on your back,” the assistant brewer said.“At least we have somewhere to send it.” Since Mr.Dwyer helped open the Astoria, Queens-based brewery two years ago, he’s disposed of his spent grains using a simple solution: pigs. Industrywide, an estimated 90% of the beer-making byproduct is given or sold as feed for hogs, chickens and other livestock. That easy fix could come to an end. Federal officials proposed rules earlier this year that brewers say would make their favorite disposal A FLIGHT WHEN method prohibitively expensive. The Food and Drug Adminis- tration’s proposal is an unintended consequence of broader rules in- YOU NEED ONE. tended to improve the safety standards of livestock feed. The regula- tion would force breweries to dry AND PLENTY and package their grain before distributing it as animal feed. Beer makers say the cost of extra space would be burdensome. After a na- WHEN YOU DON’T. tionwide outcry by the rapidly growing craft-beer industry, the FDA said it would reword the pro- 180 MORE FLIGHTS A DAY FROM posal this summer. “As a group, we have a lot more NYC THAN ANY OTHER AIRLINE. pull than we used to,but we’re going to become a lot larger of a target,” Mr. Dwyer said.“This law would be disastrous for craft brewing.” Growth in all boroughs In the past three years,New York state has issued 20 beer licenses in the five boroughs, increasing the number citywide to 23,according to July data by the Empire State De- velopment Corp. Queens’ seven breweries have all opened in the past two years. SingleCut, one of the largest newcomers,aims in 2014 to quadru- ple the 1,500 barrels it brewed last year. That would translate to nearly 400,000 pounds of wet grain for which it would pay New Jersey- based Wilenta Feed about $8,000 to haul to farmers. “It’s the most affordable and sustainable option we’ve found,” Mr. Dwyer said. “There just isn’t that much demand for spent grain here in the city.” Smaller beer makers have fewer options. Rich Castagna, who operates Bridge and Tunnel Brewing Co. in a garage in his backyard in Maspeth, Queens, loads the trunk of his car and drives 30 minutes to a Based on a survey of peak day ﬂ ights in August 2013 departing from JFK and LGA. #KEEPCLIMBINGNY Survey includes regional and contract carriers. compost pile at a petting zoo in eastern Queens. Ethan Long, co- founder of Rockaway Brewing Co., gives some of the byproduct to community gardens but pays to send

July 21, 2014 | Crain’s New York Business | 5 20140721-NEWS--0006-NAT-CCI-CN_-- 7/18/2014 5:57 PM Page 1 THE MAKING HER CASE: be rendered nonfunctional. Transportation Commissioner The board expects to have a quo- Polly Trottenberg believes INSIDER design-build could save tens rum at its July 22 and 29 meetings, by Jeremy Smerd, Thornton McEnery, of millions of dollars. though a public hearing scheduled for Aug.12 has been canceled.It plans to Erik Engquist and Chris Bragg have the minimum three members required to make decisions at its Aug. Saving money with design-build 19 meeting. The mayor nominated BSA Chairwoman Meenakshi Srini- he de Blasio administration wants the state to give it vasan in May to head the Landmarks permission to build major infrastructure projects faster Preservation Commission and has yet to name her successor. Tand cheaper by bundling design and construction bids Each year the BSA handles into a single contract. more than 350 applications for zon- A 2011 bill authorizing design-build procurement for some ing variances and special permits, state projects is credited with helping trim $1.7 billion off and appeals to zoning and building- code determinations. The board, what is now an estimated $3.4 billion Tappan Zee Bridge which has a 20-person staff and a project.The state has calculated that design-build projects are $2.2 million budget, also rules on buck ennis buildings, fire and business-services 27% less costly. pair of a cantilevered section of the department appeals. “We are very anxious to have the Brooklyn-Queens Expressway un- rezoning. That zoning keeps real A City Hall spokeswoman re- authority to do design-build,” said der the Brooklyn Promenade. estate prices low for businesses that sponded, “The mayor is fully com- Going Republican city Department of Transportation “We are big believers in design- require access to large chunks of mitted to supporting industrial Commissioner Polly Trottenberg at build,” said Ms. Trottenberg, “and cheap space. IBZ proponents were businesses throughout the city—as A new political action committee is Crain’s Rebuilding NY conference have been talking to business groups disappointed to see that Mr.de Bla- evidenced by the $100 million in- raising cash to keep the state Senate July 14. “It could save tens of mil- and labor and everyone all around sio’s first budget did not allocate vestment in the Brooklyn Army Republican. Washington, D.C.- lions of dollars and shave the the city to make the case.” funding to the program, which Terminal.” based Protect NYS PAC recently timetable on some major projects.” helps individual zones maintain raked in $200,000 from the Republi- The state bill expires in Decem- Industry backers space and attract businesses. They Board sessions can State Leadership Committee,a na- ber. Efforts this spring to reautho- fear City Hall may want to create tional group that has helped flip leg- rize it with a provision allowing lo- Melissa Mark-Viverito is making it “workforce housing”in IBZs as part The departed chairwoman of the islatures Republican across the calities to use design-build failed in crystal-clear that she and the City of the administration’s effort to city’s Board of Standards and Ap- country. The PAC will be compet- part because organized labor want- Council support industrial business build 80,000 new affordable units peals has not been replaced, another ing for funds with another new out- ed a requirement that all projects use zones. Now the council speaker over the next 10 years. board member is quitting July 31, a side Republican group with deeper unionized workers. would like her close ally, Mayor Bill “It’s a conversation we haven’t third member is on a long overseas New York roots, Balance New York. Ms. Trottenberg said design- de Blasio, to agree. thoroughly had yet,” Ms. Mark- vacation, and the executive director “New York is a key priority for the build would be a focus of the city in The mayor may be keen to take Viverito said. The council put of the agency is leaving. Some in the RSLC, and we have full confidence the next session. One project that away the shield that protects 21 $830,000 for IBZ programs into the real estate industry worry that the in both groups,” an RSLC spokes- could benefit from it is the tricky re- designated IBZs from residential 2015 budget. obscure, but important, board will woman said. Ⅲ

6 | Crain’s New York Business | July 21, 2014 20140721-NEWS--0007-NAT-CCI-CN_-- 7/18/2014 2:10 PM Page 1

BUSINESS 2,867 Taxi drivers whose last name is Singh, the most common of NYC’s 52K cabbies PEOPLE Source: NYC OpenData

EXECUTIVE MOVES

Pratt Institute: Gerry Snyder, 60, will join as dean of the School of Art, effective July 28. He is chief academic officer and vice president for academic affairs at Santa Fe University of Art and Design. YMA Fashion Scholarship Fund: Douglas C. Evans, 52, joined the nonprofit as executive director. He was previously founding president and general manager of the Classical South Florida Public Radio Network. St. Regis New York: Hermann Elger, 45, joined the hotel as general manager. He was previously general manager at the Montage, Beverly Hills. Museum of Modern Art: Michelle Elligott, 43, was promoted to chief of archives, a newly created position. She was previously senior museum archivist. Amalgamated Bank: Mark Minter,64, joined the bank as chief credit-risk officer. He was previously executive vice president and chief credit officer at RBS Citizens Financial Group Inc. Theatre Development Fund: Anne Trites, 59, joined the non- DO THE MATH: profit service organ- Mosner Family ization for the per- Brands’ sales have forming arts as doubled since Ben director of develop- Mosner was put in ment. She was pre- charge of business viously director of development. marketing and communications at the Yale School of Drama/Yale Repertory Theatre and adjunct professor of the- buck ennis ater management at the Yale School of Drama. GOTHAM GIGS RKF: Ross Berkowitz, 27, was promoted to senior director at the real estate firm. He was previously director. MHP Real Estate Services: Robert Montaquiza, 44, joined the commercial real estate broker as senior managing director. He was previously a Life in the veal world director at Transwestern. Cushman & Wakefield: Anne Jablonski, 45, joined the commercial real estate services firm as executive managing Ben Mosner has no beefs about his family’s biz director of global business development strategies for the valuation and When Ben Mosner joined his family’s wholesale hold,” he said. “I have a huge passion for meat.” ¶ advisory group. She was previously ‘I have managing director at Situs. meat business in 2000, he’d arrive at its Hunts In the seven years since Ben was put in charge of Liberty SBF: John a huge Point plant in the Bronx from his Rockland business development, Mosner’s sales have Tomeo, 52, joined County home at 3:30 a.m. to unload 200-pound doubled, to nearly $40 million this year. His the commercial real passion estate finance com- lamb and calf carcasses. ¶ Seven years later, Mr. younger brother and sister have also joined the pany as managing Mosner was “allowed” upstairs, to work in the company. ¶ Mr. Mosner expanded the menu to director of capital for meat’ markets and institu- office where his father and uncle run the include not only lamb and veal, but beef, pork, tional sales. He was company, Mosner Family Brands, founded in game and hard-to-find meats: kangaroo, camel, previously managing director at Angel Oak Capital Advi- 1957 by Ben’s late grandfather. ¶ “I was probably snapping turtle and even rattlesnake. He inked a sors. 26 years old when my father said I was more deal with Chefs’ Warehouse of Hunts Point to Jordan Edmiston Group Inc.: Joseph Sanborn, 44, joined the investment valuable upstairs as a salesperson,” said Ben, now distribute Mosner’s products to restaurants and bank as managing director and head 33 and a father of two. As a kid, he’d go to work supermarkets nationally, which now account for of technology. He was previously with his father on Saturdays, when a truckload of 20% of revenue. ¶ It recently launched a $299 managing director and head of merg- ers and acquisitions at Rutberg & Co. animals would arrive. He spent summers in high butchering class on Saturdays. Now the business Assurant Inc.: Robyn Price Stonehill, 42, school taking deliveries and butchering, is growing out of its Hunts Point space. ¶ As the was promoted to executive vice president, chief human resources officer trimming the meat down to the bone. ¶ Mr. third generation makes its mark, one tradition and member of the company’s man- Mosner worked on Wall Street for 18 months remains: Every day at 11, the Mosners take 30 agement committee. She was previ- after high school, but decided corporate America minutes to eat lunch together. “So we don’t forget ously senior vice president of compen- sation, benefits and shared services. wasn’t for him. “I like selling something I can we are a family,” he said. —lisa fickenscher See EXECUTIVE MOVES on Page 8

July 21, 2014 | Crain’s New York Business | 7 20140721-NEWS--0008-NAT-CCI-CN_-- 7/18/2014 2:11 PM Page 1

CORPORATE LADDER EXECUTIVE MOVES

Continued from Page 7 CHILDREN’S AID SOCIETY HIRES FIRST FEMALE CEO Republic Records: THE CHILDREN’S AID SOCIETY has appointed Phoebe Boyer as its new president and CEO, making her the first woman to Joseph Carozza,29, hold the posts at the 161-year-old charity. Ms. Boyer, 47, succeeds Richard Buery Jr., who became a deputy mayor in the was promoted to sen- de Blasio administration earlier this year. ior vice president of media relations at the Ms. Boyer in mid-September will leave her job as executive director of the Robertson Foundation, a $1 billion record label, a division nonprofit created by hedge-fund billionaire Julian Robertson that supports national issues such as education reform. of Universal Music “I get to bring my knowledge to an organization with an amazing set of services,” said Ms. Boyer. Group. He Children’s Aid has a budget of $120 million and offers cradle-to-college services, including after-school was previously vice programs, legal counseling and health clinics, to 70,000 children. The nonprofit wants to boost its fundraising president of media relations. to $32 million, from $23 million, in the next five years. Ms. Boyer plans to cultivate more individual donors Honest Buildings: Adam Fleming,32, joined the commercial real estate servic- and foundations, telling her soon-to-be-former employer to “expect a call.” es marketplace as vice president of tech- “Phoebe has long embraced the kind of mission-driven, results-oriented thinking that is a nology. He was previously director of cornerstone of what we’re doing at Children’s Aid,” said board Chairman Mark Edmiston. —THERESA AGOVINO engineering at Urban Compass. USI Insurance Services: Mary Jo Jacobs, 53, joined the insurance broker as vice president and employee benefits adviser. She was previously director of benefits and facilities at MediaOcean. Brooklyn Nets and Barclays Center: Mike Zavodsky, 30, was promoted to executive vice president of global partner- ships. He was previously senior vice president of corporate sponsorships for Barclays Center. STV: Kenneth M. Champion, 56, joined the engineering and architectural consulting and design firm as vice president in the construction management division. He was previously the program director of the United Nations’ Capital Master Plan. Gilbane Building Co.: Carlos Patino,44, joined the construction firm as project executive. He was previously senior project manager at Lend Lease. Billboard: Isabel González Whitaker, 43, joined the music brand as deputy editor. She was previously features editor at InStyle. Baker Botts: Andrew Behrman, 37, joined the law firm as special counsel. He was previously of counsel at Hogan Lovells. Edward Schorr, 55, joined as a partner. He was previously a partner at Hogan Lovells. Pearl Cohen Zedek Latzer Baratz: Veroni- ca Munoz, 56, joined as a partner at the law firm. She was previously a partner at Hogan Lovells. Brendan Mee, 53, joined as special counsel. He was previously a principal at Brendan Mee Law, which he founded. Lani Questembert, 41, joined as special counsel. She was previously a senior associate at Vinson & Elkins. McCarter & English: Margarita Wallach, 41, was promoted to partner at the law firm. She was previously an associate. McGuireWoods: Jeffrey Rothschild,43, joined the law firm as a partner in its corporate department. He was previously a partner at McDermott Will & Emery. Mayer Brown: Colleen Tracy, 44, joined the law firm as a partner in the intellectual-property practice. She was previously a partner at Fitzpatrick Cella Harper & Scinto. Hinshaw & Culbertson: Katie M. Lachter, 36, was promoted to partner at the law firm. She was previously an associate. Joseph G. Silver, 34, was promoted to partner. He was previously an associate. WIRE International Realty: Alex Carini, 26, joined the luxury brokerage firm as international real estate adviser and licensed sales agent. He was business development manager at Ferrante. —nazish dholakia

EXECUTIVE PROMOTIONS The fastest way to get an announcement into Crain’s is to submit online. Fill out the form at www.crainsnewyork.com/section/ executive_moves. The Executive Moves column is also available online.

8 | Crain’s New York Business | July 21, 2014 20140721-NEWS--0009-NAT-CCI-CN_-- 7/17/2014 4:29 PM Page 1

to expect the five-year maintenance cost to be roughly equal to the up- Council bus-stop plan’s costs tick up front cost.” If that proves to be the case, maintenance costs on countdown cember 2012, the councilman pro- clocks could present a fiscal problem Countdown clocks jected the expense of purchasing and for the city—one that would run will cost $20K each installing a bus-shelter countdown past the end of the 11 council mem- clock to between $4,000 and $6,000. bers’ terms. Although the clocks are to duplicate MTA’s The quadrupling of the estimate being built with the members’ dis- may be attributable to the city’s con- cretionary funds, it will be up to the GPS-based program tract with Cemusa, the Spain-based city Department of Transportation company that builds and maintains to come up with the money to keep BY THORNTON MCENERY New York’s bus shelters. The 20- them ticking. year deal, signed in 2005, calls for A spokesman for the agency City Council members have just al- the company to pay the city a total disagreed with Mr. Kolber’s fig- located millions of dollars to tell of $1 billion for the right to sell ad- ures, instead pegging the annual their constituents when the next city vertising on bus shelters, news- maintenance cost at about $1,000 bus is coming, something the Met- stands and public toilets. If count- per clock. He said the department ropolitan Transportation Authority down clocks use premium expects the clocks would cost less can already do. CLOCKING TAXPAYERS: advertising space on bus shelters, to maintain than traffic lights be- Eleven council members set aside Fans of bus-stop clocks the city would need to lease it back. cause they would not have to be almost $2.8 million in the new city say not every New Yorker immediately fixed or replaced. budget to outfit 100 or more bus can get the same arrival Expensive maintenance The spokesman also said there is stops with countdown clocks. The information via cellphone. To avoid that, council members nothing in the contract with Cem-

devices, which the city Department buck ennis are considering placing the clocks usa that would prohibit the city from of Transportation estimates will cost on “wayfinding” panels most com- sitting down with the company to $20,000 each to buy and install, will city’s five boroughs. therefore not served by Bus Time. monly used to outline historic dis- find a cost-effective way to integrate show riders when the next bus is ex- A 2014 Nielsen poll found that “If you have a grandmother, try tricts. But some say putting stand- clocks into bus shelters. pected to arrive. 92% of all adults in the New York to get her to use a cellphone,” said alone infrastructure outside the Cost-saving does not, however, Yet almost every New Yorker al- metropolitan area own a cellphone, Councilman Brad Lander, who protection of bus shelters would in- appear to be a factor in the imple- ready has access to the information. including 69% who have a smart- budgeted $240,000 for bus-stop flate maintenance costs. mentation of the clocks, which As part of its Bus Time program,the phone. clocks in his Brooklyn district. “The real cost isn’t $20,000 per have been cheered by transit advo- MTA recently equipped every city “Twenty thousand dollars is a very sign; it’s closer to $40,000 over cates as a service enhancement and bus with GPS devices that allow rid- Four times the original price reasonable cost for infrastructure about a five-year period when the a way to increase bus ridership. ers to find out exactly where the ve- Still,neither the cost nor any con- that can be used by thousands of cost of maintenance is included for The initial cost of putting a hicles are via SMS texting or a cerns about creating duplicative in- people to make their lives easier.” outdoor hardware that is subject to countdown clock at every one of smartphone app.The transit agency frastructure is deterring clock pro- That price tag is four times what weather and vandals,” said Scott the city’s bus stops would come to spent $7,200 per bus on the proponents,who emphasize that the 8% Mr. Lander thought each clock Kolber, CEO of Roadify, a data at least $300 million. The council’s gram, which is available at all of cellphone-less New Yorkers are would cost when he first backed the platform for mass-transit informa- entire discretionary budget for 15,000-plus bus stops across the overwhelmingly poor or elderly, and idea. At a press conference in De- tion.“We’re told by industry experts 2015 totals $50 million. Ⅲ : Business of Series Presents Tuesday, September 23, 2014 John Jay College of Criminal Justice 524 West 59th Street 8:30 a.m. – 9:00 a.m. Registration and Networking Breakfast 9:00 a.m. – 10:00 a.m. Program Cost to Attend: $80 individual ticket(s) $800 for a reserved block of ten seats

You must be pre-registered to attend this event. The Business of Pot: No refunds permitted. For more information: Adrienne Yee Phone: 212-210-0739 The Stakes Are High Email: [email protected] For sponsorship opportunities: Medical marijuana is now legal in New York state, presenting a unique series of business opportunities for a Joanna Harp select group of manufacturers, dispensaries and consultants. However, this ﬁnancial potential comes with Phone: 212-210-0278 great risk and regulations. Businesses and doctors will face bureaucratic hurdles and possible prosecution. Email: [email protected] Join Crain’s as we take a deep dive into the complexities of the new law, examining the effects from an economic standpoint and the potential windfall for the future of New York. Register Today >> Panelists: Host Sponsors: crainsnewyork.com/events-bizofpot To be conﬁrmed Moderator: Aaron Elstein, Senior Reporter, Crain’s New York Business

July 21, 2014 | Crain’s New York Business | 9 20140721-NEWS--0010-NAT-CCI-CN_-- 7/17/2014 4:51 PM Page 1

OPINION CRAIN’S NEW YORK BUSINESS

‘Chek’ with business first editor in chief Rance Crain publisher, vp Jill R. Kaplan EDITORIAL he TransitChek program enables worker per day, which is unfathomably punitive. editor Glenn Coleman employees to pay train and bus fares with Mr. Garodnick argues that if even a few employees sign managing editor Jeremy Smerd deputy managing editors Valerie Block, pretax earnings, potentially saving them up for TransitChek, a business would save more money than Erik Ipsen assistant managing editors Barbara Benson, hundreds of dollars annually on payroll it spends to administer it. If so, it shouldn’t take a law to get Erik Engquist and income taxes. Employers can save on employers to sign up. A simple marketing campaign and senior news producer Amanda Fung contributing editor Elaine Pofeldt payroll taxes and improve their workers’ some technical guidance would do. Chambers of commerce columnists Greg David, Steve Hindy, Alair Townsend senior reporters Theresa Agovino, job satisfaction and loyalty by offering the and other business groups stand ready to help. Aaron Elstein, Lisa Fickenscher, Matthew Flamm, program, which was made possible by federal legislation. Another issue with payroll-reduction programs is that Daniel Geiger, Adrianne Pasquarelli reporters Joe Anuta, Chris Bragg, But a bill authored by City Councilman Daniel low-wage workers often shun them, despite the potential Andrew J. Hawkins, Irina Ivanova, T Thornton McEnery Garodnick, D-Manhattan, to compel businesses with 20 or savings, because cash-flow concerns deter poor people from reporter/videographer Ken M. Christensen more employees to offer TransitChek takes the wrong committing in advance to a smaller paycheck. Mr. news producer Emily Laermer web reporter/producer approach. It would break Congress’ promise of an optional Garodnick’s bill cannot Nazish Dholakia program. Absent that promise, the business community solve that problem. art director Steven Krupinski It’s employers’ deputy art director Carolyn McClain would not have supported its creation, and Congress would In a perfect world, staff photographer Buck Ennis copy desk chief Steve Noveck not have approved it. If cities begin shoving “optional” choice to offer Congress would do copy editor Thaddeus Rutkowski federal initiatives down employers’ throats, it will discourage away with pretax data editor Suzanne Panara TransitChek, not researchers Malik Singleton, Nicholas Wells Washington from creating more such programs. commuting programs editorial interns Valentina Cordero, Mark Fahey, Gianna Lakenauth, Katrina Samuelson That’s the big-picture reason to shelve Mr. Garodnick’s government’s and spend that money conferences and events editor bill. But the legislation would be impractical at a more on mass-transit Jessica Kramer granular level as well. For starters, employers with at least 20 directly.That would ADVERTISING, MARKETING AND PRODUCTION advertising director Joanna Harp workers don’t necessarily have the administrative staff to benefit all transit users, sales manager Irene Bar-Am rather than just those senior account managers operate TransitChek, which any human-resources manager Jill Bottomley Kunkes, Courtney McCombs, can tell you is no simple task.TransitChek works better who use TransitChek, and save a ton of paperwork. Of Suzanne Wilson director of custom content Trish Henry when businesses have low employee turnover and regular course, the City Council cannot expect that. account executives Lauren Black, Rob Pierce The council instead should work with business and events coordinator & scheduler commuting patterns, but the council bill does not (and could Alexis Sinclair not) make such distinctions, and relies instead on the worker-advocacy groups to broaden the use of TransitChek. credit Todd J. Masura (313-446-6097) director of audience & content simplistic metric of staff size. If the program really is a no-brainer, employers will offer it. partnership development Michael O’Connor But that is their decision to make, not the government’s. senior marketing manager The bill would also subject businesses to fines of $50 per Catherine Schutten director of conferences & events Courtney Williams events coordinator Adrienne Yee CRAIN’S ONLINE POLL COMMENTS reprint account executive Alicia Samuel production and pre-press director Simone Pryce ONLINE AND INTERACTIVE SERVICES general manager Rosemary Maggiore Generating controversy TO SUBSCRIBE: For print and digital subscriptions or customer CON ED RESPONDS these co-generation playing a larger role in service, e-mail [email protected] customers. or call 877-824-9379 (in the U.S. and Canada) or supporting the grid. 313-446-0450 (all other locations). $3.00 a copy for Contrary to your July 7 story It is important that rates We are determined to the print edition; or $99.95 one year, $179.95 two “Con Edison rains on the off- are fair to all our 3.3 million maintain our industry-leading years, for print subscriptions with digital access. SHOULD THE TIMES SQUARE grid parade,” the Durst customers and do not create reliability. New York City, the www.crainsnewyork.com/subscribe ELMOS AND OTHER Organization’s 1 Bryant Park subsidies for a few. Standby world’s financial capital, a TO ADVERTISE: is not off the grid at all. The charges are designed to help center of government and Contact Joanna Harp at [email protected] COSTUMED PANHANDLERS or call 212-210-0278. building uses the grid when its ensure this fairness and to home to great hospitals, www.crainsnewyork.com/advertise BE LICENSED? co-generation plant is in encourage efficient projects universities and laboratories, service and, more important, with the appropriate demand can settle for no less. FOR INFORMATION ON OUR EVENTS: Yes. Times Square is crowded enough without when it is off-line. and usage profile. We have demonstrated our Contact Courtney Williams at the added hassle of a small army dressed to [email protected] or 212-210-0257. Co-generation owners like There is a balance with any support for co-generation by www.crainsnewyork.com/events make a financial killing by posing for pictures. Durst save money on their rate structure to encourage helping 200 customers install TO CONTACT THE NEWSROOM: No. The presence of so many brightly colored energy bills because they use building owners to choose 150 megawatts of generation 685 Third Ave., New York, NY 10017-4024 characters only adds to the wild and wacky less electricity from the grid. distributed generation while with another 100 megawatts editorial phone: 212-210-0277 nature of the Crossroads of the World. And they save millions of also treating all customers in the works. fax 212-210-0799 dollars upfront by using Con fairly. Entire contents ©copyright 2014 Crain Communications Inc. Date of poll: July 9 We will continue to All rights reserved. ®CityBusiness is a registered trademark 156 votes Edison’s infrastructure rather This rate structure support this technology and of MCP Inc., used under license agreement. than having to buy and install prevents costs from shifting many new technologies in the CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS more complex equipment of from these large co- near future to help customers chairman Keith E. Crain their own. generation customers to the manage their energy usage, president Rance Crain They also offset a homeowner in Queens, the install more resilient and treasurer Mary Kay Crain significant portion of their shopkeeper in Brooklyn, the energy-responsible designs Cindi Crain 21% upfront costs by receiving state restaurateur in Manhattan and innovate smarter, more executive vp, operations William Morrow No incentive money.These and all our other customers. executive vp, director of strategic cost-efficient projects that will operations Chris Crain incentives are funded by utility Con Edison is in favor of be integral to the Con Edison executive vp, director of corporate 79% customers through a surcharge co-generation and helps grid. operations K.C. Crain Yes on their monthly bills. customers plan these projects. —robert schimmenti senior vp, group publisher David Klein vp/production, manufacturing David Kamis Crain’s missed an essential We support customers taking Vice president, engineering chief financial officer Thomas Stevens point: The standby charge is control of their energy costs and planning chief information officer Anthony DiPonio not new or unexpected to and look forward to co-gen Consolidated Edison Inc. founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) secretary Merrilee Crain (1942-2012) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

10 | Crain’s New York Business | July 21, 2014 20140721-NEWS--0011-NAT-CCI-CN_-- 7/17/2014 4:38 PM Page 1

STEVE HINDY workers is variable and complicated to calculate. Minimum-wage hike: My company brews and sells beer, and we start unskilled workers at a much higher wage than the OK, but not all at once minimum because we want to train and retain reliable workers. I talked to some of my restaurant customers he inability of the U.S. Congress to agree on a in New York City. They said they change in the federal minimum wage, set at $7.25 pay more than $10 an hour to their unskilled workers because that en- an hour,has resulted in a mishmash of increases by sures they’ll show up for work on a states and municipalities in the past few years. regular basis and take some pride in Seattle has a newly approved $15-an-hour mini- their jobs. mum; Minnesota will be at $9.50 per hour by 2016; Connecti- The minimum wage was estab- T lished in 1938,as part of the Fair La- cut will be $10.10 by 2017.There are similar efforts in Santa Fe bor Standards Act. President and Alberquerque, N.M.; San Francisco and San Jose, Franklin D. Roosevelt’s pitch to Congress declared that America Calif.;the District of Columbia;and the second semester of Econ 101 in should be able to provide its workers two Maryland counties. 1970.) “a fair day’s pay for a fair day’s work.” Gov. Andrew Cuomo has pro- There are studies that show that It does not seem that the divided posed a $10.10 hourly wage for New raising the minimum wage will re- Congress of 2014 will ever agree on York state, with localities allowed to sult in fewer jobs because employers what constitutes a fair day’s pay, so I increase that by 30%, to $13.13. will cut their payrolls and demand expect more and more localities to Some New York lawmakers have more from their laborers. There are set their own standard hourly pay called for a $15 wage floor for chain studies that refute this by showing scales. restaurants having more than 11 lo- that the states that have increased In New York City,$320 for a 40- cations nationwide.At the moment, the federal minimum have actually hour workweek seems far from a fair New York state’s minimum is $8 an seen increases in employment. day’s pay. It seems to me that an in- hour; it will increase to $8.75 at the One of the main opponents of crease to more than $10 an hour is end of this year and go to $9 by the increasing the minimum wage is coming. If I were running a pizza end of 2015. the restaurant industry. Restau- parlor and paying dishwashers and The debate over the minimum rants employ many unskilled work- clerks $8 an hour, I would ask Mr. wage is intense and complicated. It ers, and they also pay waiters and Cuomo and Mayor Bill de Blasio to can take a Ph.D.in economics to be- bartenders who make money give me some warning before hiking gin to understand and participate in through tips,which may or may not the minimum wage. this discussion. It is way beyond me. be shared with other staff. So the Phase in any increase over a few (The only college course I failed was actual pay of many restaurant years. Don’t spring it on me.

anyone else in the city. ● Real estate. It isn’t just sky- Is economy coming rocketing property prices that could be leading to a bubble. The rush to build super-luxury apart- to a bubbling boil? ments also seems overheated, since their key market is suspect Russian oligarchs. The rent surge in the arlier this month, real estate firm Massey Knakal market-based part of the residen- produced a startling chart on the real estate mar- tial market is also unsustainable, and therefore so may be the overall ket in New York.Sales measured by dollar volume residential boom. should top the 2007 peak of $62.2 billion this year. If the super-luxury segment At a projected $63 billion, the number is 10 times crashes, only a few real estate de- the 2009 recession low and is being driven primarily by a sharp velopers would get hurt. In the E short term, lower prices would ac- run-up in property prices. If you plot the numbers in a chart, it tually be good. But a crash would looks like a bubble. pummel the barely recovered construction sector, and that would In fact, bubbles are the preoccu- not be good. pation of the day as the prices of ● Tourism. While the growth of many assets rise, in part because the tourism in the city doesn’t look like economy is improving and interest a classic bubble, consider these rates are so low that investors are numbers.Since 2001,the number of chasing anything with better re- visitors to the city has increased by turns. If the bubbles burst, the wor- 58.5%. Nothing grows forever. At riers contend,the economy could be some point, New York fatigue could dragged down, too. set in. Here are the three areas that New Even a small decline in tourism Yorkers could legitimately suspect would be a problem because it has are bubbles. been the major driver of new jobs in ● Tech. OK, it isn’t 1999 all over the city in hotels,attractions,restau- again, and the fast-growing tech GREG DAVID rants and even retail. Want to pon- sector is more diverse, better funded der the impact? Two-thirds of and anchored in part on established Broadway tickets are bought by companies like Google. But to be- in mid-July that focused attention tourists. Now that is an industry at come the city’s second-most- on the bubble issue specifically sin- risk. mportant industry and to fill the gled out the prices of smaller social- Even calling a worrisome in- hole left by a shrinking Wall Street, media firms as “substantially crease a bubble is controversial.And scores of startups will have to be- stretched,’’ which is Fed-speak for a it is almost impossible to know come big successes, like Shutter- bubble. when one will burst. But when they stock. At risk is the sector that is creat- do deflate,there are always bad con- A Federal Reserve Board report ing the more good-paying jobs than sequences.

July 21, 2014 | Crain’s New York Business | 11 20140721-NEWS--0012-NAT-CCI-CN_-- 7/17/2014 4:32 PM Page 1

IN THE BOROUGHS BROOKLYN FROM Cultural district sparks growth AROUND Continued from Page 3 THE CITY Greene and downtown Brooklyn, has morphed into a phenomenon now feeding on its own success. QUEENS AT ISSUE: How Residents at its high-rises now to refurbish the Residents rail over Metropolitan help pack its arts venues, whose suc- Avenue Bridge cess helps draw yet more residents, bridge rehab plan phillip murtha who fuel a growing array of area restaurants and shops. In some cases, Nearly 15 years ago, the city slated but he stressed that the reconstruc- residential developers are even sow- the derelict Metropolitan Avenue tion is still in the planning stages ing their own cultural seeds, carving Bridge,used by pedestrians and mo- and will not begin before 2016.The out space in their developments for torists to cross over Fresh Pond agency is seeking further input from arts organizations. Topping it all off, Road in Ridgewood,Queens,for re- the Community Board. a recently unveiled $3 million furbishment. The only problem, —kerry murtha streetscape plan involving new dark- said Gary Giordano, district man- stone sidewalks with randomly ager of Community Board 5, is that BROOKLYN embedded lights and new seating and nothing ever happened. landscaping Ironically, as the city now gets Motorcycle renter will physically ready to swing into action,some res- lays rubber 50+ cement the IN THE ZONE: Growing arts groups sow seeds for forest of new residential and hotel projects. idents are screaming foul.The prob- NUMBER of cultural neighborhood’s lem is that the Department of Less than two months after Jupiter’s organizations identity. Transportation wants to shore up Motorcycle Rental garage in “The lyn Partnership. The critical mass of as Crown Heights, Bedford- the bridge by dismantling some of Brooklyn’s gritty Gowanus neigh- 1,751 Brooklyn Cul- apartments and cultural institutions Stuyvesant, East New York and the railroad tracks that run under- borhood launched a sort of two- RENTAL APTS. to tural District is adds ever more drawing power. Sunset Park, said Ms. Sakano, her- neath it in order to install an abut- wheeled version of Zipcar, its mem- open in next two a catalyst for “People see a thriving neighbor- self a Bed-Stuy resident. ment. The rails are used for freight bership has nearly doubled. years residential and hood,” said Scott Walsh, vice presi- service, and until 15 years ago, also “We are nearing the 100- commercial de- dent of residential at Forest City The more, the merrier for passenger service until the near- member mark,”said Joonil Park,op- 690K velopment that Ratner Cos., which owns a five- Starving artists can, however, by Fresh Pond Road station on the erations manager of the company, BAM’S 2013 [in turn] great- year-old, 36-story rental property catch a much-needed break at some Long Island Rail Road was closed. based at 119 Eighth St., just a block attendance ly benefits the with 365 units at 80 DeKalb Ave. local box offices. The Theatre for a Some residents fret that ripping from the odoriferous Gowanus numerous cul- Hotel chains, too, are feeling the New Audience, whose Polonsky up the rails could jeopardize the even- Canal. The company has an inven- tural groups that call this communi- drawing power of the cultural en- Shakespeare Center opened last tual return of passenger service to the tory of about 1,000 motorcycles, ty home,”said Andrew Kalish,direc- clave. Vos Hospitality will break November, has slashed ticket prices growing neighborhood, even though and its bikes are in high demand,es- tor of cultural development at the ground this fall on a 201-room, 29- to $20, from $75, for employees and an agency official said that there is no pecially on weekends. The service, Downtown Brooklyn Partnership. story Marriott Autograph hotel set program participants of Brooklyn such plan even under consideration. which launched in May, offers “And the pavement plan imbues it to include a restaurant and a rooftop nonprofits, as well as for individuals Others claim that the timing for the members daylong jaunts from with a unified identity.” wading pool. Plans also call for 30 and younger and full-time stu- $30 million project is all wrong. garages all over the city, including 1,500 square feet of entertainment dents of any age. “Eliminating tracks two in Manhattan. Drawing power space in the hotel basement for cul- “We are committed to affordable doesn’t make sense when “The difference [be- Meanwhile, artsy nonprofits are tural programming. Over at 66 ticket pricing as a way to make our more municipal garbage is tween us and car servic- still streaming in. Eye Beam, a Rockwell, the developer is working productions available to the widest being transported by rail,” es] is that there is much visual-technology group born in with the Mark Morris Dance Com- possible audience within our new said Mr. Giordano, noting more of a community Manhattan, will arrive in 2016, and pany, also in the district, to provide community,” said Dorothy Ryan, the Community Board re- feel; people feel like the Brooklyn Public Library is plan- classes for its tenants. TFNA’s managing director. cently voted against the re- they are really members ning to open a facility that would “We’re trying to be as much a For local businesses, of course, pair proposal. of something and not cater to writers and other creative part of the community as we can and the more people the district’s arts The plan would result in just a car service,” said types when and if it can raise need- access the cultural institutions in the organizations attract, the better. more freight trains on fewer Mr. Park. The price is ed private funding. community,” said Drew Spitler, Baba Cool Café, a tidy eatery with tracks, causing more con- $49 a month for mem- The district’s residential popula- Dermot’s director of development. four tables in 315 square feet at 64B gestion and noise for resi- bers, and an additional tion is also still growing. Projects in Despite all the affordable units Lafayette Ave., is among the bene- dents who live nearby.Board $49 per riding day. various stages of development by included in the new buildings, some ficiaries. Since opening it three members also say the city’s original “To own a motorcycle in New Two Trees Management, the Steiner artists are still feeling a bit left out. months ago, owner Gabriella Mann proposal to fix the bridge did not in- York City is too expensive—the family of Steiner Studios and the Michiko Sakano, an artist who uses said she’s not only scored catering clude track removal and that doing so garage alone costs around $200 a Jonathan Rose Cos. will add more UrbanGlass’ facilities, has noticed gigs from BAM, but also served vis- is just an effort to cut costs, because month,” said Tyler Pietz, director of than 1,700 rental units during the that those who work in the cultural itors drawn to the cultural offerings. the absence of rail traffic would lessen East Coast sales for MediaSpike, next two years. More than 44% of district find it too expensive to live “They’re definitely coming in— the load on the bridge. who rides three or four times a them will be earmarked as affordable, there. Instead, they commute from for coffee, a chocolate-chip cookie A DOT spokesman admitted month. “Jupiter’s model is unique.” according to the Downtown Brook- cheaper parts of Brooklyn, such or brunch,” she said. the project is a “complicated site,” —valentina cordero

based companies, there were 10 for Brooklyn and two for Long Island VC funding hits highest level since 2001 City, Queens. One good sign for the startup through-June period for New York VENTURE-CAPITAL DOLLARS INVESTED IN NEW YORK (in millions) ecosystem in New York was that the More than $1.1B state, which raked in $1.15 billion, money was spread across stages, the most the region has seen since from seed to Series E and higher. was raised in 2Q in $1,250 $1,149 the second quarter of 2012 and a “New York has been more bal- New York, spurring 36% spike over the prior quarter,ac- 1,000 $931 anced than it used to be,” CB In- cording to the 2Q 2014 Venture $843 sights co-founder Anand Sanwal jobs, higher wages 750 $670 Capital Activity Report, which was $619 said. “Seed and Series A were at a released Thursday by VC database five-quarter low, which is a good BY MATTHEW FLAMM CB Insights. 500 thing, showing that companies New York also had the distinc- funded earlier are making it through Buoyed by massive funding rounds tion of topping traditional rival 250 to the mid- and later stages.” for Uber,Cloudera and Airbnb,U.S. Massachusetts in both funding (the 0 The funding boom has pushed venture-capital investment in the Bay State took in $1.03 billion) and 2Q, 2013 3Q, 2013 4Q, 2013 1Q, 2014 2Q, 2014 up employment and wages in the second quarter totaled $13.88 bil- number of deals (108 versus 100). Source: CB Insights sector.Salaries commanded by New lion, the highest it’s been since the As usual, California was in a York’s CIOs and CTOs, for exam- second quarter of 2001 and a 39% league of its own, with $8.93 billion had the No. 1 transaction in the company Oscar at No. 2 with $80 ple, ranged between $170,000 to jump over the previous quarter, ac- in investment across 442 deals. quarter. Flatiron Health had New million. $240,000, tying San Francisco’s as cording to a new report. With its $1.2 billion Series D York’s top deal, raising $130 million Though more than 90 of New the highest in the nation, according It was also a very good April- round, San Francisco-based Uber in a Series B, with health insurance York’s deals went to Manhattan- to tech staffing firm Mondo.

12 | Crain’s New York Business | July 21, 2014 20140721-NEWS--0013,0014-NAT-CCI-CN_-- 7/17/2014 4:33 PM Page 1

SMALL BUSINESS MADE IN INSIDE Bling, cosmetics fuel local export market PAGE 15 ‘Sales have increased almost 90% in the metro region’ REPORT NY —John Martini, owner, Anthony Road Wine Co., Page 14

ON THE MENU: Marc Murphy features cheeses made in New York state at his Landmarc restaurants. Taste NY feeds state’s locavore biz Local chefs respond AT THE SOURCE to guv’s initiative Number of farmers’ markets in New York state to promote NYS food 647 and beverages 636 520

BY LISA FICKENSCHER

When diners peruse the menu at Landmarc restaurants—celebrity chef Marc Murphy’s acclaimed eateries in TriBeCa and the Time Warner Center—they won’t find an assortment of cheeses from all over 2012 2013 2014 the world. Source: Locavore Index, compiled by local-food About a year ago, Mr. Murphy advocacy group Strolling of the Heifers attended an event at which Gov. Andrew Cuomo challenged city and yogurt to beer, wine and spirits chefs and others to purchase more made in New York but not yet wide- food and beverages that come from ly distributed in the Big Apple. the Empire State. The linchpin of his campaign is “I decided to make a statement Taste NY, a nearly year-old, $2 mil- with my cheeseboard,” said Mr. lion initiative that features the Murphy, who now serves a cheese state’s foods and beverages at such plate for $24 that features only New high-profile events as last Febru- York products. He replaced some ary’s Super Bowl and the 2013 New offerings from Europe, California York City Wine & Food Festival. and other areas. State officials say it is too early to Meanwhile, Mr. Murphy’s other measure the program’s impact, but restaurant, Ditch Plains, added anecdotal evidence suggests that more New York wines to its menu. some local producers are selling more Although the locavore move- of their products in the city since the ment caught fire about a decade ago, campaign started. There were 28 it has gotten a push during the past Taste NY events in the state in 2013, year in New York,where Mr.Cuomo and the goal is to produce at least has made it part of his economic pol- twice that amount this year, accord- icy.To create more jobs in depressed ing to Kevin King,director of the Di- areas of the state, he has aggressively vision of Agricultural Development

buck ennis promoted everything from cheese See TASTE on Page 14 Creative class migrates deeper into Brooklyn, Queens Exodus follows path of subway lines “It’s up-and-coming turned a small office at- creasingly scarce. but not there yet, a bit 3,900 tached to it into her Being an artist in New York City to thriving borough neighborhoods underdeveloped but NUMBER of fashion, bedroom. Her rent is has always meant being mobile and with its own charm,” architecture, landscape $1,100 a month. moving into grittier, cheaper neigh- who is a graphic designer. she said. Ms. Patel, who architecture, interior Crown Heights is borhoods until they begin to gentri- BY EILENE ZIMMERMAN Unable to afford Williamsburg previously lived in Jer- design, industrial design one of several neigh- fy and become too expensive. The and Greenpoint,they began looking sey City, needed a and graphic design firms borhoods in Brooklyn exodus continues, although now it’s in New York City Searching for a creative community in Crown Heights after hearing workspace big enough where the creative not from Manhattan to the other where there were plenty of opportu- about it from friends. Last August, to create, assemble and Source: Center for an Urban Future class is seeking refuge, boroughs, it is within these bor- nities to learn from other artists and they moved to a roomy, two- package her products— often priced out of ar- oughs themselves. collaborate, illustrator and designer bedroom, third-floor apartment. which include grocery totes,tea tow- eas like Williamsburg, Greenpoint Creative professionals are moving Meera Lee Patel began apartment- Ms. Patel has found the neighbor- els and stationery—so she uses the and Dumbo, where affordable deeper into Brooklyn and beyond, hunting in Brooklyn with a friend hood has plenty of appeal. master bedroom as her studio and space for living and working is in- See BOROUGHS on Page 14

July 21, 2014 | Crain’s New York Business | 13 20140721-NEWS--0013,0014-NAT-CCI-CN_-- 7/17/2014 4:34 PM Page 2

REPORT SMALL BUSINESS: MADE IN NY

in 2012 that encourages the growth manufactures yogurt and milk, has of breweries like Empire by allow- been “riding the local” trend for Taste NY boosts local products ing them to obtain “farm brewery” many years, said President Ronny licenses, which among other things Osofsky. The farm’s products have give them the same privileges as been sold in many stores in the city Continued from Page 13 a wine distributor to experience in a 90% in the metro region,” Mr. Mar- wineries, allowing them to serve and metropolitan area, including of the New York State Department year,” said Kevin Faehndrich, direc- tini said. “It’s caught our attention.” beer by the glass and for purchase as greenmarkets, for many years. But of Agriculture and Markets. tor of New York state wines and Other initiatives have also long as they use primarily locally revenue has grown significantly “We are trying to measure the re- spirits for Opici. helped raise awareness of local vint- grown ingredients. during the past 12 months, to near- sults,” he added. “We know we are The company has also seen a ners, such as the New York Wine & But the governor has clearly fa- ly $10 million, a gain of 10%, Mr. creating more 58% increase in orders from its cur- Grape Foundation’s three-year-old vored producers of alcohol and yo- Osofsky said. exposure with rent clients who are trying a vintage NY Drinks NY campaign, which gurt in his efforts—which has not As a result, the family has invest- 456 these events.” from upstate for the first time. focuses exclusively on connecting gone unnoticed by those left out. ed in new processing equipment COMMUNITY- SUPPORTED Aside from Anthony Road Wine Co. in the with city-based businesses. that will be able to handle 1,200 gal- agriculture projects yogurt—New Finger Lakes region is one of the The craft-beer trend is thriving in Cheese, please lons of milk an hour, up from 300 in NY state, 2014 York has been beneficiaries of the downstate de- the city as well. Upstate breweries are “I’d like to see the state do for ar- gallons. In the past year, its current Source: Locavore Index the top producer mand. Opici sold 724 cases of the making private-label beers for restau- tisan cheese makers what it did for equipment had been backing up, in the country for vineyard’s product in the metropoli- rants such as Kingside in the Viceroy Greek yogurt,” said Sharon halting production for about 90 the past two tan area from Jan. 1 through June 16 Hotel, and Empire Brewing Co. has Tomaselli, co-owner of Coopers- minutes at a time, because of the in- 23 years—wine, of this year, compared with 380 cas- a deal with Colicchio & Sons. Both town Cheese Co., whose products creased volume it was handling. NEW YORK’S RANK (among 50 beer and spirits es during the same period in 2013. eateries are in Manhattan. were served at the presidential inau- Meanwhile, state officials have states) in 2014 have become the The vineyard’s wines are offered Empire started out in 1994 as a gural luncheon in 2013. “There high hopes for the third Taste NY Locavore Index state’s latest culi- in 48 restaurants in the city—includ- brewpub in Syracuse, which it still hasn’t been a big push for cheese.” store in the city—selling jams, nary darlings. ing Bearded Lady in Brooklyn and operates, and began making beer in Still,Ms.Tomaselli,whose prod- cheese, beer and wine made in the Opici Family Distributing, one Monument Lane in the West Vil- Greenpoint, Brooklyn, at an exist- ucts are featured on Landmarc’s state—which is opening in Grand of the largest distributors of upstate lage—compared with 30 last year. ing plant several years ago. In 2011, cheese board, concedes that sales Central Terminal this summer. The New York wines, is seeing the de- it bought 22 acres outside Syracuse have jumped during the past year. two existing shops are at LaGuardia mand firsthand. Opici, based in Craft beers to build a brewery and farm, where She declined to provide the compa- and JFK airports. Glen Rock, N.J., has sold 67% more Anthony Road’s sales in 2013 ex- it will grow hops and other ingredi- ny’s annual revenue but said the firm Mr. King of the Agriculture De- cases of New York wine in the city ceeded $1.2 million. The company ents for the beer it hopes to start is marginally profitable. partment pointed out that the shops and surrounding suburbs this year to was profitable last year but hasn’t al- making in 2015. Empire’s 2013 rev- “It’s hard for me to know where have sparked interest from buyers all date, compared with the same peri- ways been, according to John Mar- enue was more than $4 million, and the sales increase is coming from,” over, including sommeliers from od last year. tini, owner of the vineyard, which is it is profitable,said Olivia Cerio,the she said. Europe. “Such a large increase is not a known for its rosés and Rieslings. company’s brand manager. Similarly, Dutchess County’s “The Grand Central store,” he normal thing for a wine region and “Our sales have increased almost The governor signed legislation Ronnybrook Farm Dairy, which said, “is a big deal.” Ⅲ Boroughs get creative

Continued from Page 13 or East Williamsburg, they are be- machinery for proto- into Queens, to both live and work, ginning to move into neighbor- typing and small man- said Paul Parkhill,executive director hoods like North Flatbush, ufacturing. The for- of Spaceworks, a nonprofit that Bedford-Stuyvesant and Crown mer Pfizer building at builds affordable workspace for Heights in Brooklyn, Sunnyside 600 Flushing Ave. in artists in all five boroughs. “The and Astoria in Queens, and some Williamsburg,the for- market for studio space in the outer parts of the South Bronx, said Mr. mer Studebaker build- boroughs, especially for visual Havens. ing at 1000 Dean St.in artists, has gotten very tight and ex- Crown Heights, and EASY COMMUTE: SITU Finding deals Studios partner Wes pensive, especially in the last two to the Standard Motor Rozen likes the firm’s three years,” “Crown Heights is exploding,” Products building at convenient Brooklyn said Mr. he said.“It has had the fastest store- 37-18 Northern Blvd. locations. 40,340 Parkhill. front turnover in the history of gen- in Long Island City, NUMBER of full-time He counts trification.” Mr. Havens said his Queens, have been designers in New York Bushwick, clients often want their workspace repositioned for use by City (65% greater than East located near their living space. creative entrepre- next-largest city, Los Angeles), 2013 Williamsburg Kenny Kline, the founder of neurs, craftspeople Source: Center for an Urban and Sunset Slumber Sage, a website that pro- and light-manufactur- Future Park in vides reviews and information about ing tenants. Brooklyn as mattresses, and his wife, Kimia “Brooklyn is at the places that had been affordable for Kline, a painter, moved to the Fort heart of the city’s artists but have become more ex- Greene/Clinton Hill area of Brook- small-manufacturing pensive commercial markets. lyn last October. They found studio renaissance,” said Meanwhile, a growing number space that is about 100 square feet, Jonathan Bowles, ex-

of creative businesses are putting the same size that Ms. Kline had in ecutive director of the buck ennis down roots in Brooklyn and Bushwick, but “brighter and nicer,” Center for an Urban Queens. A recent report about New said Mr. Kline. He uses part of the Future. “The Navy Yard and Army anymore,” Mr. Samuels said. “We arrive early in a developing arts York City’s design economy from studio, shared with two other peo- Terminal straddle the line between had been renting temporary spaces community, they do want to be near the Center for an Urban Future ple,for video work he does for Slum- manufacturing and art and design.” in Brooklyn, but you have to set up a other creative people, said Mr. found that between 2003 and 2012, ber Sage.The monthly rent is $500. Bradley Samuels’ firm, SITU, shop every time you move,and that’s Bowles.“And Ridgewood is not that growth in the number of design The couple also moved, along which provides design and fabrica- exhausting and inefficient.” far from Bushwick.” firms in both boroughs outpaced with Ms. Kline’s brother, into a tion services, has two Brooklyn lo- The company’s location offers a Of course, some creative profes- Manhattan, with Brooklyn experi- $3,500-a-month, 900-square-foot, cations: a 3,000-square-foot space convenient commute for Mr. sionals do find living and working encing a 101% gain, and Queens, two-bedroom, fifth-floor walkup in in Dumbo for administrative and Samuels, who bought a home in space in Manhattan. Architectural 45%.The number of design firms in the neighborhood. design work and 10,000 square feet Brooklyn’s Windsor Terrace neigh- photographer Connie Zhou lives in Manhattan increased just 6%. “We were looking to move to in the Navy Yard for digital fabrica- borhood two years ago. It’s less than Chinatown with two roommates, The migration of the creative Brooklyn to live because that’s tion and construction. SITU, which 15 minutes away from his Dumbo also photographers,in an apartment class is following the path of sub- where a lot of the artists are,”he said. is profitable, is the umbrella compa- office, which is a 10-minute walk she found about three years ago that ways out of Manhattan, especially “We looked at Williamsburg and ny for SITU Studios, SITU Fabri- from there to the Navy Yard. “It’s is owned by a distant aunt. There is the F and L lines, said Christopher Park Slope, but they are too expen- cation and SITU Research. pretty ideal,” he said. a large community of creative peo- Havens, head of the commercial di- sive.” They are now surrounded by Mr. Samuels had been looking ple in the neighborhood, she said, vision at AptsandLofts.com, head- musicians, painters and graphic de- for space farther out,in Maspeth and Early arrivals and the apartment has big rooms,so quartered in Williamsburg. “It’s all signers, said Mr. Kline, who is also a other parts of Queens, when he se- Some small creative companies Ms. Zhou is able to do her postpro- about the subways and the express jazz pianist. cured the Navy Yard space about 18 are moving to Ridgewood and Sun- duction work in a space set up in her trains,” he said. Neighborhoods farther north in months ago. “We certainly couldn’t nyside in Queens, as well as St. bedroom. The apartment is $3,000 Although some artists still man- Brooklyn are increasingly attracting have done this in Dumbo. It’s not a George on Staten Island. Even a month, split three ways. “It’s a age to find studio space in Bushwick businesses that require space and place for manufacturing facilities though many artists aren’t afraid to great deal,” she said. Ⅲ

14 | Crain’s New York Business | July 21, 2014 20140721-NEWS--0015-NAT-CCI-CN_-- 7/17/2014 4:34 PM Page 1

REPORT SMALL BUSINESS: MADE IN NY

BEAUTY SPOT: New York is home to major contract Bling, beauty products, art cosmetics makers, says attract overseas buyers FIT’s Stephan Kanlian.

especially items made with cut dia- jewelry exporter. “It’s not a big bulk Handmade and monds and other gemstones. The product,” said Ms. Garretson. manufactured items top three exports from New York ● Dollars and scents. The health- state in 2013 were diamonds, gold and-beauty sector is one of eight see uptick in sales and jewelry made from other pre- industries in the New York City cious metals, totaling close to $30 region considered to have high billion, or more than a third of potential, according to Carmela BY ANNE FIELD total exports, according to Census Mammas, director of the U.S. Bureau data. “New York City is the Commercial Service’s New York New York City doesn’t typically undisputed center of the diamond City Export Assistance Center. spring to mind as a hub for locally Exports of perfumes and toilet manufactured exports—but distant waters hit $398 million in 2013 in buyers are snapping up products Exports of New York state, with “beauty and made in the five boroughs at a clip. skin-care preparations” reaching Total exports for New York state diamonds, gold, more than $300 million and eye rose to $86.5 billion in 2013, up 6% makeup approaching $70 million. from $81.3 billion the year before,ac- jewelry totaled A significant number of skin- cording to the U.S. Census Bureau. care product and perfume makers Within the New York City region, $30 billion operate in the greater metropolitan several product categories are well region, while a couple of major con- represented in na- tract manufacturers of makeup are tional census data located in New York City,according 5.5% on individual to Stephan Kanlian,chairman of the NEW YORK goods with thriv- and jewelry industry for North master’s program in cosmetics and STATE’S SHARE of U.S. exports ing markets, said America,” said a recent report by fragrance marketing and manage- in 2013 Sara Garretson, the New York Industrial Retention ment at the Fashion Institute of

Source: U.S. Census president of the Network, which is now part of the Technology. “They like being near buck ennis Bureau Industrial + Tech- Pratt Center for Community the center of innovation and mar- nology Assistance Development. keting,” he said. “New York City is ings and pastels by hand,” at a value berg, executive director of the Man- Corp., or ITAC, a Manhattan-based The center of the action is,as one the global beauty capital,perhaps ri- of $4.6 billion. Exports of “original hattan-based Art Dealers Associa- organization that provides consult- might expect, Manhattan’s dia- valed only by Paris.” sculptures and statuary” totaled tion of America. ing and training to manufacturers mond district. The presence of ● A brush with local artists. Given $846 million, and printed pictures, Why the higher figures for and technology companies in the highly skilled craftsmen and the that New York City is a global hub designs and photographs added up paintings, drawings and pastels? area. Here’s a look at three: small amount of space required to for the art world, perhaps it should to $190 million. Some of that was “Probably you can sell them for ● Baubles lure buyers. New York create fine jewelry—and the mini- not be surprising that the fifth- made in the New York City area, more money,” said Ms. Blumberg. state—led by New York City—is a mal cost to transport it—have largest export from New York state although “I wouldn’t want to guess “There’s a bigger market for those major exporter of fine jewelry, helped New York City thrive as a in 2013 included “paintings, draw- what percentage,” said Linda Blum- things.” Ⅲ

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July 21, 2014 | Crain’s New York Business | 15

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KEY FACTORS to consider when seeking online 3 graduate degree programs By Joshua Kim

So you’re thinking of taking the plunge and finally getting that graduate degree you’ve 3. PROGRAM SUPPORT been considering. But you have a few requirements. You can’t quit your day job, so the Seek a dedicated team that works closely with online graduate students and ensure you program needs to be built around your schedule and the credentials must be valuable always have a single point of contact with whom you can discuss questions, issues and to your current or future employers. My advice to you: guide your research process with complaints. Because today’s online programs are far more media-intensive than in the the following three factors. past and rely heavily on video, audio, synchronous online meetings, webcams, voice- 1. over-IP (VOIP), mobile devices and other tools, you should ask how technical support SPECIALIZATION is handled. Ideally, your online learning unit, or the specific program, would handle Having a clear idea of your three-, seven- and 10-year career trajectory will better equip technical support. You want computer support experts who work in online learning, you to select the right graduate program. Seek out a program where the curriculum know the program well and are comfortable helping working professionals. Beware of red is most closely aligned with your specific career goals. The advantages of a specialized flags, like technical support that is handled through the existing undergraduate help desk. program are three-fold: the curriculum will be aligned most closely with the industry you are working in, your faculty will be enmeshed in your industry, and a specialized program Deciding to invest in an online graduate degree program is an enormous commitment. will mean that your fellow students are also part of your future professional network. Time spent up-front in the research process will have enormous payoffs in both your experience as a student and in the return you realize for your educational investment. 2. ENGAGEMENT Acquiring new content is not why you are applying to graduate school. In today’s digital age, there is no shortage of free, high-quality lessons. The value of a graduate degree Focus on Education is directly proportional to the opportunities available to form intensive and authentic is published by relationships with faculty and your fellow learners. It is these relationships that will Crain’s Custom Connections Studio. catalyze learning and later career advancements. Ask questions about how engaged faculty For more information, please contact members are with students and how classes are formatted. For example, do students and Trish Henry at (212) 210-0711 faculty spend time in web-based meetings built around conversation and debate, rather or [email protected] than online lectures? Also, uncover if collaboration and communication are prioritized and if the program’s philosophy is student-centric.

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State University of New York Fashion Institute of Technology Where creativity gets down to business. P018-20CL_CN_20140721.qxp 7/18/2014 2:09 PM Page 18

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM CONSTRUCTION BIDS PUBLIC & LEGAL NOTICES The Wildlife Conservation Society is currently soliciting qualified Notice of Qualification of Vibrant Notice of Qualification of Custom Application for Authority of Maison contractors for the restoration of Hurricane Sandy damaged infrastructure at the Opportunity Fund GP, LLC. Authority House USA, LLC. Authority filed with de Beaute, LLC doing business in New York Aquarium. The scope of work will include, but may not be limited filed with NY Dept. of State on 5/19/14. NY Dept. of State on 6/5/14. NYS NY as Bespoke Beaute LLC, filed to, electrical, plumbing, general construction and HVAC work contained in the Office location: NY County. LLC formed fict. name: Western Union Business with the Secy. of State of NY (SSNY) attached drawing set and scope documents. in DE on 8/1/13. NY Sec. of State Solutions, LLC. Office location: NY 5/29/14. Formed in DE 5/19/14. The scope of work and specifications can be found on our FTP site – designated agent of LLC upon whom County. Princ. bus. addr.: 12500 E. Office loc.: New York Co. SSNY is instructions on how to access the site follow. There are 5 files in the FTP process against it may be served and Belford Ave., Englewood, CO 80112. designated as agent of LLC upon site folder. See instructions below: shall mail process to the principal LLC formed in DE on 5/31/14. NY Sec. whom process against it may be business addr.: c/o DFG Investment served. The principal business loc. User name: publicftp of State designated agent of LLC Password: Gorilla# (case sensitive) Advisers, Inc., 655 Third Ave., 23rd Fl., upon whom process against it may be is 24 W. 40th St., 10th Fl., New York, NY, NY 10017, Attn: Moritz Hilf. DE served and shall mail process to: CT NY 10018. The address SSNY shall Here are the steps for the most readable version to see the FTP site: addr. of LLC: The Corporation Trust Corporation System, 111 8th Ave., mail copy of process to and the 1. Right click on Start Co., 1209 Orange St., Wilmington, DE NY, NY 10011. DE addr. of LLC: 1209 required office address maintained in 2. Select Explorer 19801. Cert. of Form. filed with DE Sec. Orange St., Wilmington, DE 19801. DE is 305 N. Ashview Lane, Greenville, 3. Type ftp://ftp.wcs.org on Address area of State, Townsend Bldg., Dover, DE Cert. of Form. filed with DE Sec. of DE 19808. Cert. of formation filed 4. Use above mentioned username and password 19901. Purpose: all lawful purposes. State, 401 Federal St., Dover, DE with Jeffrey W. Bullock, DE Secretary 19901. Purpose: all lawful purposes. of State, Div. of Corporations, P.O. 5. You will see two folders: Public and WCS Staff Notice of Formation of FDB 111 6. Open Public Folder Box 898, Dover, DE 19903. Purpose: Street LLC. Arts. of Org. filed with NY FREMONT BLUE EVENTS LLC, a Any lawful activity. 7. Open folder NYA - NA013 HP PUMP RM & NA019 HP OZONE SHED Dept. of State on 2/11/14. Office domestic LLC, filed with the SSNY on ELECTRICAL BID SET location: NY County. Princ. bus. addr.: 5/1/14. Office location: New York Notice of Formation of Euro Mec 8. Download and or Upload the file using copy and paste to your desktop 825 3rd Ave., Fl 37, NY, NY 10022. County. SSNY is designated as agent Utilities, LLC. Arts. of Org. filed with If you experience technical difficulties accessing these documents online Sec. of State designated agent of upon whom process against the LLC NY Dept. of State on 6/11/14. Office please email us at [email protected]. Your email should include your firm’s LLC upon whom process against it may be served. SSNY shall mail process location: NY County. Princ. bus. name and an individual’s contact information (email, telephone, etc) may be served and shall mail to The LLC, 20 W. 22nd St., #807, addr.: 250 Park Ave., 7th Fl., NY, NY process to: CT Corporation System, NY, NY 10010. General Purpose. 10177. Sec. of State designated 111 8th Ave., NY, NY 10011, regd. agent of LLC upon whom process agent upon whom process may be Notice of Formation of Rapaport NY against it may be served and shall POSITIONS AVAILABLE served. Purpose: any lawful activity. LLC. Arts. of Org. filed with Secy. of mail process to: c/o Wilk Auslander State of NY (SSNY) on 6/23/14. LLP, 1515 Broadway, 43rd Fl., NY, NY Notice of Formation of East 162nd Office location: NY County. SSNY 10036. Purpose: all lawful purposes. Analyst Analyst Street Associates LLC. Arts. of Org. designated as agent of LLC upon Id lng/shrt eqty invstmnt ideas; Prfrm quant Anlyz glbl basc & indstrl mtrls; Explr & filed with Secy. of State of NY (SSNY) whom process against it may be Notice of Formation of EINHORN & qualtv anlys to sprt lng/shrt thes; Creat prdc cmpny fncl dta to prfrm dtld valuatn on 5/21/14. Office location: NY County. served. SSNY shall mail process to: DEVELOPMENT GROUP LLC. Arts. dtaild oprtg/M&A mdls whle implmntg & fncl mdlg; Exmn ecnmc scenrs & catlysts; SSNY designated as agent of LLC The LLC, 1212 Avenue of the of Org. filed with Secy. of State of NY loan/asst port runoffs & prchs accountg; Anlyz rsltg valuatn snstvty & mrkt reactns; upon whom process against it may Americas, 8th Fl., NY, NY 10036. (SSNY) on 06/06/14. Office location: Req: Bach in Econ, Math, Busns, Finc or Req: Bach in Finc & 2 ys in job or as be served. SSNY shall mail process Purpose: any lawful activity. NY County. SSNY designated as clsly rltd fld & 2 yrs in job or as Anlyst at a Invstmt Bnkg Anlyst or clsly rltd. Skls: to: c/o B&B Supportive LLC, 419 agent of LLC upon whom process fncl srvcs cmpny w/ exp at glbl invstmt frm, Undrstndg of mdlg & extrpltn of dta; SNL Park Avenue South, 18th Fl., NY, NY Notice of Formation of 134 WEST against it may be served. SSNY shall spec in fncl srvcs. Skls: Fncl mdlg w/in bnks dta base mining; Txas rail road cmsn web 10016. Purpose: any lawful activity. LLC. Arts. of Org. filed with Secy. of mail process to Corporation Service & spec finc; Exp in fncl accntg; Exp w/ M&A base dta anlys; Blmbrg prgrmg runs; EIA State of NY (SSNY) on 5/21/14. Co., 80 State St., Albany, NY 12207- fncl mdlg; In dpth undrstndg of valuatn 914 dta anlys for Ntrl Gas frcstg; Basin NOTICE OF FORMATION OF Office location: NY County. SSNY 2543, regd. agent upon whom and at techs; Advncd knwldg of Excl, PwrPnt & SNL crv anlys acrs all rgns of the US. 40 OBJECT-IFY 139 LLC. Arts of Org designated as agent of LLC upon which process may be served. Fncl. 40 hrs/wk; 9am-5pm; Salary commens hrs/wk; 9am-5pm; Salary commens w/ filed with Secy of State of NY (SSNY) whom process against it may be Purpose: Any lawful activity. w/ exp.; MPG Operations LLC, New York, NY. exp; MPG Operations LLC, New York, 5/01/14. Office location: NY Co. SSNY served. SSNY shall mail process to: Resumes to: Box 30189, 685 Third Ave., 9th NY. Resumes to: Box 30189, 685 Third designated agent upon whom process c/o Office of Lawrence E. Fabian, NOTICE OF FORMATION of Semona Floor, New York, NY 10017. Ave., 9th Floor, New York, NY 10017. may be served and shall mail copy of Esq., 437 5th Ave., Ste. 801, NY, NY Gems LLC. Arts of Org filed with Secy process against LLC to: Maria 10016. Purpose: any lawful activity. of State of NY (SSNY) 5/14/14. Office Candanoza, 139 Essex St, NY NY location: NY Co. SSNY designated Jabil Circuit has an opening in Consultant needed by Verizon in 10002. Principal business address: Notice of Formation of 928 MYRTLE agent upon whom process may be Poughkeepsie, NY, for Senior ERP New York, NY to deliver consulting 139 Essex St, NY, NY 10002. AVE HRN LLC. Arts. of Org. filed with served and shall mail copy of process Subject Matter Expert to ensure that project activities, ranging from client Purpose: any lawful act. Secy. of State of NY (SSNY) on against LLC to principal business current business processes are effectively identification through supporting 6/4/14. Office location: NY County. address: 257 Central Park West, #8F, supported by the company’s SAP final invoicing through medium- to GI Health and Medical, PLLC, Articles SSNY designated as agent of LLC NY, NY 10024. Purpose: any lawful act. Enterprise Resource Planning system. long-term engagements. Travel of Organization filed with Secretary of upon whom process against it may be Bachelor’s in Supply Chain Mgt, Bus. required up to 50% throughout the State of NY (SSNY) on 05/20/14. Office served. SSNY shall mail process to: Notice of Formation of Cory van den Adm., Engg, or related field & 5 years U.S. May work in various unantici- Location: NY County. SSNY designated c/o Hector R. Nova, 2861 Frederick Bossche LLC. Arts. of Org. filed with exp. in a high-volume manufacturing pated locations throughout the U.S., as agent of LLC upon whom process Douglass Blvd., NY, NY 10039. Secy. of State of NY (SSNY) on purchasing or planning position using May work from home. Fluent in against it may be served. SSNY Purpose: any lawful activity. 06/20/14. Office location: NY County. Enterprise Resource Planning tool(s) speaking and writing Spanish and shall mail a copy of process to: The SSNY designated as agent of LLC required. Up to 25% domestic and/or English. PLLC 139 Centre St., Ste. 609, New Notice of Formation of EMERGENCY upon whom process against it may global travel. Must have legal auth. to To apply, email resume to: Anne York, NY 10013. Purpose: to engage TIARA LLC. Arts. of Org. filed with be served. SSNY shall mail process work permanently in the US. EOE. Romero at in the profession of Medicine. Secy. of State of NY (SSNY) on to: TRAC- The Registered Agent Apply at www.jabil.com and must 06/12/14. Office location: NY County. Company, Inc., 715 St. Paul St., [email protected]. THE SCHLEMMER FIRM, LLC, a SSNY designated as agent of LLC reference job id 22461. Refer to Job#432-N. Baltimore, MD 21202. Purpose: any domestic LLC, filed with the SSNY upon whom process against it may be lawful activities. on 4/18/14. Office location: New York served. SSNY shall mail process to c/o Looking for experienced County. SSNY is designated as agent Franklin, Weinrib, Rudell & Vassallo, Notice of Formation of Brooklyn Life/Employee Benefits Producer upon whom process against the LLC P.C., 488 Madison Ave., 18th Fl., NY, Capital Square LLC. Arts. of Org. may be served. SSNY shall mail NY 10022. Purpose: Any lawful activity. filed with Secy. of State of NY (SSNY) to partner with midsize 100 year PUBLIC & LEGAL process to Paul N. Schlemmer, 111 on 10/21/13. Office location: NY old Property & Casualty Agency. Broadway, Ste. 1305, NY, NY 10006. Notice of Formation of LAND-SEE, County. SSNY designated as agent of NOTICES LLC. Arts. of Org. filed with Secy. of Call Managing Partner General Purposes. LLC upon whom process against it may State of NY (SSNY) on 03/20/14. be served. SSNY shall mail process 516-721-4444 Notice of Formation of Kubany Judlowe, Notice of Qualification of WT 3G Office location: NY County. SSNY LLC. Name: Kubany Judlowe, LLC. to: 202 Centre St., 6th Fl., NY, NY LLC. Authority filed with NY Dept. of designated as agent of LLC upon whom 10013. Purpose: any lawful activity. Articles of Organization filed with the State on 6/13/14. Office location: NY process against it may be served. SSNY Secretary of State of New York on County. LLC formed in DE on shall mail process to Corporation NOTICE OF FORMATION OF LIMITED May 21, 2014. NY Office Location: 4/21/14. NY Sec. of State designated Service Co., 80 State St., Albany, NY LIABILITY COMPANY. NAME: STAM TELECOMMUNICATIONS New York County. SSNY has been agent of LLC upon whom process 12207, regd. agent upon whom and LLC. Articles of Organization were designated as agent of LLC upon against it may be served and shall at which process may be served. filed with the Secretary of State of NYC'S MOTOROLA whom process may be served and mail process to: c/o CT Corporation Purpose: Any lawful activity. New York (SSNY) on 06/03/14. Office MOTOTRBO SPECIALISTS shall mail copy of process against System, 111 8th Ave., NY, NY 10011, location: New York County. SSNY LLC to principal business address: regd. agent upon whom process may Notice of Qualification of TRICADIA has been designated as agent of the MOTOTRBOTM Kubany Judlowe, LLC, 1123 CONVEXITY GP, LLC. Authority filed Professional Digital Two-way Radio be served. DE addr. of LLC: 1209 LLC upon whom process against it System provides significant productivity Broadway, Suite 1011, New York, New Orange St., Wilmington, DE 19801. with Secy. of State of NY (SSNY) on may be served. SSNY shall mail a gains - reliably and affordably. York 10010. Purpose: any lawful act. Cert. of Form. filed with DE Sec. of 06/24/14. Office location: NY County. copy of process to the LLC, c/o Dov • Clearer voice capability and enhanced State, 401 Federal St., Dover, DE LLC formed in Delaware (DE) on Tabak, 375 Park Avenue, Suite 1604, battery life Notice of Qualification of Crestview 06/18/14. Princ. office of LLC: 780 • Integrated voice and data for better 19901. Purpose: all lawful purposes. New York, New York 10152. Purpose: productivity and privacy Partners III (DE Offshore), L.P. Third Ave., 29th Fl., NY, NY 10017. For any lawful purpose. • Text messaging Authority filed with NY Dept. of State Notice of Qualification of Cole FD SSNY designated as agent of LLC • Doubles channel call capacity for on 6/16/14. Office location: NY County. Portfolio VII, LLC. Authority filed with upon whom process against it may be Notice of Qualification of Washington the price of one license Princ. bus. addr.: 667 Madison Ave., NY Dept. of State on 5/9/14. Office served. SSNY shall mail process to the Square Technologies LLC. Authority *$100 TRADE-IN PER RADIO 10th Fl., NY, NY 10065. LP formed in location: NY County. Princ. bus. addr.: LLC at the addr. of its princ. office. filed with NY Dept. of State on 3/27/14. Call to learn more or to DE on 6/10/14. NY Sec. of State 2325 E. Camelback Rd., Ste. 1100, The regd. agent of the company upon Office location: NY County. LLC schedule a professional, no-obligation survey or designated agent of LP upon whom Phoenix, AZ 85016. LLC formed in whom and at which process against formed in DE on 3/4/14. NY Sec. of on-site demo. process against it may be served and DE on 2/11/14. NY Sec. of State the company can be served is State designated agent of LLC upon shall mail process to: CT Corporation designated agent of LLC upon whom Michael Barnes, c/o Tricadia Capital whom process against it may be System, 111 8th Ave., NY, NY 10011. process against it may be served Management, LLC, 780 Third Ave., served and shall mail process to: c/o DE addr. of LP: c/o The Corporation and shall mail process to: c/o CT 29th Fl., NY, NY 10017. DE addr. of CT Corporation System, 111 8th Ave., Trust Co., 1209 Orange St., Corporation System, 111 8th Ave., LLC: c/o National Corporate NY, NY 10011. DE addr. of LLC: The Wilmington, DE 19801. Name/addr. NY, NY 10011. DE addr. of LLC: 1209 Research, Ltd., 615 S. DuPont Hwy., Corporation Trust Co., 1209 Orange 33 East 33rd Street of genl. ptr. available from NY Sec. of Orange St., Wilmington, DE 19801. Dover, Kent Cnty., DE 19901. Arts. of St., Wilmington, DE 19801. Cert. of New York, NY 10016 State. Cert. of LP filed with DE Sec. Cert. of Form. filed with DE Sec. of Org. filed with Secy. of State of the Form. filed with DE Sec. of State, 212-532-7400 of State, 401 Federal St., Dover, DE State, 401 Federal St., Dover, DE State of DE, 401 Federal St., Dover, DE 401 Federal St., Dover, DE 19901. www.metrocomradio.com 19901. Purpose: all lawful purposes. 19901. Purpose: all lawful purposes. 19901. Purpose: Any lawful activity. Purpose: all lawful purposes.

18 | Crain’s New York Business | July 21, 2014 P018-20CL_CN_20140721.qxp 7/18/2014 2:06 PM Page 19

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Qualification of Cerberus KRS Notice of Qualification of Elysium Notice of Qualification of Crossroads Notice of Qualification of NJS.COM, Notice of Formation of Limited Levered Loan Opportunities Fund, Digital, L.L.C. Authority filed with NY Pool I Owner LLC. Authority filed with LLC. Authority filed with Secy. of Liability Company (LLC). Name: MSA L.P. Authority filed with Secy. of State Dept. of State on 5/30/14. Office NY Dept. of State on 6/24/14. Office State of NY (SSNY) on 05/27/14. PARTNERS HC, LLC. Articles of of NY (SSNY) on 06/20/14. Office location: NY County. Princ. bus. addr.: location: NY County. Princ. bus. addr.: Office location: NY County. LLC Organization filed with Secretary of location: NY County. LP formed in 2 Oliver St., 11th Fl., Boston, MA 250 Park Ave. South, 3rd Fl., NY, NY formed in Delaware (DE) on 03/16/12. State of New York (SSNY) on April 25, Delaware (DE) on 06/09/14. Princ. 02109. LLC formed in DE on 4/25/97. 10003. LLC formed in DE on 6/23/14. SSNY designated as agent of LLC 2014. County: New York. SSNY office of LP: Seth P. Plattus, c/o NY Sec. of State designated agent of NY Sec. of State designated agent of upon whom process against it may designated as agent of LLC upon Cerberus Levered Loan Opportunities LLC upon whom process against it LLC upon whom process against it may be served. SSNY shall mail process whom process against it may be Fund II, L.P., 875 Third Ave., 11th Fl., may be served and shall mail process be served and shall mail process to: to c/o Corporation Service Co., 80 served. SSNY shall mail copy of NY, NY 10022. SSNY designated as to: c/o CT Corporation System, 111 CT Corporation System, 111 8th Ave., State St., Albany, NY 12207-2543. process to 25 East 69th Street, New agent of LP upon whom process 8th Ave., NY, NY 10011, regd. agent NY, NY 10011. DE addr. of LLC: 1209 DE addr. of LLC: 2711 Centerville York, NY 10021-4925. Purpose: to against it may be served. SSNY shall upon whom process may be served. Orange St., Wilmington, DE 19801. Rd., Ste. 400, Wilmington, DE 19808. engage in any and all business for mail process to the LP at the addr. of DE addr. of LLC: 1209 Orange St., Cert. of Form. filed with DE Sec. of Arts. of Org. filed with Secy. of State which LLCs may be formed under the its princ. office. Name and addr. of Wilmington, DE 19801. Cert. of Form. State, 401 Federal St., Dover, DE of DE, John G. Townsend Bldg., 401 New York LLC Law. each general partner are available filed with DE Sec. of State, 401 19901. Purpose: all lawful purposes. Federal St., Ste. 4, Dover, DE 19901. from SSNY. DE addr. of LP: c/o The Federal St., Dover, DE 19901. Purpose: Any lawful activity. Notice of Formation of Ferro’s License Corporation Trust Co., Corp. Trust Purpose: all lawful purposes. Notice of Qual. of Valarc GP, LLC, Holdings LLC. Arts of Org. filed with Center, 1209 Orange St., Wilmington, Auth. filed Sec'y of State (SSNY) NOTICE OF FORMATION OF LIMITED Secy of State of NY (SSNY) on DE 19801. Arts. of Org. filed with DE NES GROUP HOLDINGS LLC, Arts. 9/3/13. Office loc.: NY County. LLC LIABILITY COMPANY. NAME: VDG 05/12/2014. Office location: New York Secy. of State, John G. Townsend of Org. filed with the SSNY on org. in DE 8/15/13. SSNY desig. as Spirits, LLC. Arts of Org filed with Secy County. Princ. office of LLC: 145 East Bldg., 401 Federal St., Ste. #4, Dover, 05/29/2014. Office loc: NY County. agent of LLC upon whom process of State of NY (SSNY) on 5/16/14. 50th Street, New York, NY 10022. DE 19901. Purpose: Any lawful activity. SSNY has been designated as agent against it may be served. SSNY shall Office location: New York County. SSNY SSNY designated as agent of LLC upon whom process against the LLC mail copy of proc. to Att: Hari designated as agent upon whom upon whom process against it may Notice of Formation of Laika may be served. SSNY shall mail Ramanan, 900 Third Ave., Ste. 202, process may be served and shall be served. SSNY shall mail process Productions, LLC. Arts. of Org. filed process to: 20 W 33rd St., 6th Flr., NY, NY, NY 10022. DE off. addr.: CSC, mail copy of process against LLC to to the LLC at the addr. of its princ. with Secy. of State of NY (SSNY) on NY 10001. Reg. Agent: Nissim Gindi, 2711 Centerville Rd., Wilmington, DE principal business address: 430 West Office. Purpose: Any lawful activity. 06/24/14. Office location: NY County. 20 W 33rd St., 6th Flr., NY, NY 10001. 19808. Cert. of Form. on file: SSDE, Broadway, #430, NY, NY 10012. SSNY designated as agent of LLC Purpose: Any Lawful Purpose. Townsend Bldg., Dover, DE 19901. Purpose: any lawful purpose. There SQN ECHO II, LLC, a foreign LLC, upon whom process against it may Purp.: any lawful activities. is no predetermined dissolution date. Authority filed with the SSNY on be served. SSNY shall mail process NOTICE OF FORMATION OF LIMITED 3/19/14. Office location: New York to: 242 West 30th St., 6th Fl., NY, NY LIABILITY COMPANY. NAME: HAY Notice of Formation of Abigail Public Notice of Formation of EMPIRE County. SSNY is designated as agent 10001. Purpose: any lawful activities. PARTNERS LLC. Articles of Organization Relations, LLC, Art. of Org. filed Sec'y COMPOUNDING SERVICES II, LLC. upon whom process against the LLC were filed with the Secretary of State Arts. of Org. filed with Secy. of State may be served. SSNY shall mail T LINE MANAGEMENT LLC, Arts of of State (SSNY) 3/10/14. Office loca- of New York (SSNY) on 10/19/05. of NY (SSNY) on 06/03/14. Office process to: SQN Capital Management, Org filed with SSNY on 12/09/13. tion: NY County. SSNY designated Office location: New York County. location: NY County. Princ. office of LLC, 110 William Street, 26th Fl., NY, Off. Loc.: New York County. SSNY as agent of LLC upon whom process SSNY has been designated as agent LLC: Victor Ventures, 460 Park Ave., NY 10038. General Purposes. designated as agent of LLC upon against it may be served. SSNY shall of the LLC upon whom process 17th Fl., NY, NY 10022. SSNY desig- whom process against it may be mail copy of process to 11 Charlton against it may be served. SSNY shall nated as agent of LLC upon whom 211 East S & W LLC, Arts of Org filed served. SSNY shall mail a copy of St., Apt. 3A, NY, NY 10014. Purpose: mail a copy of process to the LLC, process against it may be served. with SSNY on 05/20/13. Off. Loc.: process to: The LLC, 160 W. 66th any lawful activities. P.O. Box 1755, New York, New York SSNY shall mail process to the LLC New York County, SSNY designated St., #29D, New York, NY 10023. 10156-1755, ATTN: Farbod Hay. Notice of Formation of Akeedube at the addr. of its princ. office. as agent of LLC upon whom process Purpose: to engage in any lawful act. Purpose: For any lawful purpose. License Holdings, LLC. Arts of Org. Purpose: Any lawful activity. against it may be served. SSNY shall mail a copy of process to: The LLC, Notice of Formation of DAS INTER- filed with Secy of State of NY (SSNY) 239-45 66th Ave, Douglaston, NY NATIONAL CAPITAL, LLC. Arts. of Notice of Formation of HIGHLINE 212 on 05/28/2014. Office location: New Notice of Formation of Whim of Iron 11362. Purpose: to engage in any Org. filed with Secy. of State of NY LLC. Articles of Organization filed with York County. Princ. office of LLC: 145 LLC. Arts. of Org. filed with NY Dept. lawful act. (SSNY) on 06/30/14. Office location: the Secretary of State of NY (SSNY) East 50th Street, New York, NY 10022. of State on 5/8/2014. Office location: on 5/23/14. Office Location: New SSNY designated as agent of LLC NY County. Sec. of State designated NY County. Princ. office of LLC: One Notice of Formation of BATALI York County. SSNY has been desig- upon whom process against it may agent of LLC upon whom process Battery Park Plaza, NY, NY 10004. PRODUCTIONS LLC. Arts. of Org. nated as agent upon whom process be served. SSNY shall mail process against it may be served and shall SSNY designated as agent of LLC filed with Secy. of State of NY (SSNY) against it may be served. SSNY shall to the LLC at the addr. of its princ. mail process to the principal business upon whom process against it may on 05/21/14. Office location: NY mail copy of process to 1 Maiden Office. Purpose: Any lawful activity. address: c/o New York Wheel LLC, 21 be served. SSNY shall mail process County. Princ. office of LLC: 45 E. 20th to Seward & Kissel LLP, Attn: Kalyan Lane, 5th Floor, New York, NY Penn Plaza, NY, NY 10001, Attn: Chief Notice of Qual. of Valarc Holdings, LLC, St., NY, NY 10003. SSNY designated Das at the princ. office of the LLC. 10038. Purpose: Any lawful purpose. Executive Officer. Term: until 12/31/2114. Auth. filed Sec'y of State (SSNY) as agent of LLC upon whom process Purpose: Any lawful activity. Purpose: any lawful activity. Notice of Formation of OLGANGELINA 9/3/13. Office loc.: NY County. LLC against it may be served. SSNY shall Notice of Formation of Broadway LLC. Arts. of Org. filed with Secy. of org. in DE 8/15/13. SSNY desig. as THERAPY WEST PSYCHOLOGY mail process to Attn: Cathy Frankel, Decatur Master Leasing LLC. Arts. of State of NY (SSNY) on 07/14/14. agent of LLC upon whom process LMSW, PLLC, a Prof. LLC, Arts. of Esq. at the princ. office of the LLC. Org. filed with Secy. of State of NY Office location: NY County. SSNY against it may be served. SSNY shall Org. filed with the SSNY on 10/03/2011. Purpose: Any lawful activity. designated as agent of LLC upon mail copy of proc. to Att: Hari Office loc: NY County. SSNY has been (SSNY) on 6/12/14. Office location: NY NOTICE OF FORMATION OF whom process against it may be Ramanan, 900 Third Ave., Ste. 202, designated as agent upon whom County. SSNY designated as agent of Oppenheimer + Close, LLC. Arts of served. SSNY shall mail process to NY, NY 10022. DE off. addr.: CSC, process against it may be served. LLC upon whom process against it may Org filed with Secy of State of NY c/o Donald David, Akerman LLP, 666 2711 Centerville Rd., Wilmington, DE SSNY shall mail process to: Jeffrey I. be served. SSNY shall mail process to: (SSNY) 5/21/14. Office location: NY Fifth Ave., 20th Fl., NY, NY 10103. 19808. Cert. of Form. on file: SSDE, Kassinove, Ph.D., 124 W. 79th St., c/o Alembic Community Development, Co. SSNY designated agent upon Purpose: Any lawful activity. Townsend Bldg., Dover, DE 19901. Ste 1B, NY, NY 10024. Purpose: To 11 Hanover Square, #701, NY, NY whom process may be served and Purp.: any lawful activities. Practice The Profession Of Psychology 10005. Purpose: any lawful activity. shall mail copy of process against NOTICE IS HEREBY GIVEN that a and Licensed Master Social Worker. Notice of Qualification of RCX license, number 1278859, for wine & Notice of Formation of Kimberly LLC to principal business address: Partners LLC filed with the NY Dept. beer has been applied for by the License Holdings LLC. Arts of Org. Notice of Formation of DILIP D. 119 W 57th St, Ste 1515, NY, NY of State on July 1, 2014. LLC formed undersigned SunBurger 4 LLC d/b/a filed with Secy of State of NY (SSNY) MADNANI, M.D., PLLC. Arts. of Org. 10019. Purpose: any lawful act. in NYS on June 30, 2014. NY Sec. of brgr to sell beer & wine at retail in a on 06/02/2014. Office location: New filed with Secy. of State of NY NEW YORK WALL STREET HOTEL State designated agent of LLC upon restaurant under the Alcoholic York County. Princ. office of LLC: 145 (SSNY) on 05/30/14. Office location: GROUP LLC, Arts. of Org. filed with whom process against it may be Beverage Control Law at 2233 East 50th Street, New York, NY 10022. NY County. Princ. office of PLLC: the SSNY on 02/06/2014. Office loc: NY served and shall mail process to Broadway, New York, NY 10024 for SSNY designated as agent of LLC 820 Second Ave., Ste. 3A, NY, NY County. SSNY has been designated office location c/o Murray Hill on premises consumption. upon whom process against it may 10017. SSNY designated as agent of as agent upon whom process against Properties 277 Park Avenue, 21st be served. SSNY shall mail process PLLC upon whom process against it Notice of Qualification of UNIVERSAL the LLC may be served. SSNY shall floor. Purpose: All lawful purposes. to the LLC at the addr. of its princ. may be served. SSNY shall mail mail process to: Eva Y Tsai, 136 AWARDS MANAGEMENT, LLC. Office. Purpose: Any lawful activity. process to the PLLC at the addr. of Notice of Qual. of CMC Real Estate Authority filed with Secy. of State of NY Schuessler Ln, Preston Hollow, NY its princ. office. Purpose: Practice of 12469. Purpose: Any Lawful Purpose. LLC, with a fictitious name of CMC (SSNY) on 06/02/14. Office location: NOTICE OF FORMATION OF LIMITED profession of medicine. Brickell Miami Real Estate LLC, Auth. NY County. LLC formed in Delaware LIABILITY COMPANY. NAME: 75 WALL Notice of Formation Everwild Media filed Sec'y of State (SSNY) 2/25/14. (DE) on 05/28/14. SSNY designated LLC.. Articles of Organization were Notice of Formation of ASCEND LLC Arts. of Org. filed with SSNY Office loc.: NY County. LLC org. in as agent of LLC upon whom process filed with the Secretary of State of ASSOCIATES, LLC. Arts. of Org. filed 3/11/2009. Off. Loc.: New York Cnty. FL 1/6/14. SSNY desig. as agent of against it may be served. SSNY shall New York (SSNY) on 05/05/14. Office with Secy. of State of NY (SSNY) on SSNY designated as agent of LLC LLC upon whom process against it mail process to c/o Corporation location: New York County. SSNY has 5/28/14. Office location: NY County. whom process may be served. SSNY may be served. SSNY shall mail Service Co., 80 State St., Albany, NY been designated as agent of the LLC SSNY designated as agent of LLC shall mail process to: c/o Josh Cook, copy of proc. to Vanessa Grout, 701 12207-2543. DE addr. of LLC: 2711 upon whom process against it may be upon whom process against it may 70-64 Yellowstone Blvd, Apt. 1A, Brickell Ave., #2410, Miami, FL Centerville Rd., Ste. 400, Wilmington, served. SSNY shall mail a copy of be served. SSNY shall mail process Forest Hills, NY 11375. Purpose: all 33131, the principal office addr. of DE 19808. Arts. of Org. filed with process to the LLC, 17 N State Street, to: David Patrick Seklir, 54 Riverside lawful activities. LLC. Art. of Org. on file: SSFL, PO Secy. of State, 401 Federal St., Ste. Suite 1700, Chicago, Illinois 60602. Drive, No. 8B, NY, NY 10024. Box 6327, Tallahassee, FL 32314. 3, Dover, DE 19901. Purpose: Any Purpose: For any lawful purpose. Purpose: any lawful activity. Notice of Qualification of GERSSE LLC. Purp.: any lawful activities. lawful activity. Authority filed with Secy. of State of NY Notice of Qualification of WLIB Tower Notice of Qual. of Valinor Capital (SSNY) on 05/19/14. Office location: LLC. Authority filed with NY Dept. of Partners SPV XVII, LLC, Auth. filed NY County. LLC formed in Delaware State on 5/14/14. Office location: NY Sec'y of State (SSNY) 12/4/13. Office (DE) on 04/07/14. Princ. office of LLC: Do You Want To Get Your Company County. LLC formed in IN on 4/22/14. loc.: NY County. LLC org. in DE 285 3rd Ave., Apt. 3, NY, NY 10010. NY Sec. of State designated agent of 12/3/13. SSNY desig. as agent of SSNY designated as agent of LLC LLC upon whom process against it LLC upon whom process against it upon whom process against it may In Front Of New York City’s Influential may be served and shall mail process may be served. SSNY shall mail be served. SSNY shall mail process to: CT Corporation System, 111 8th copy of proc. to Att: David to c/o Corporation Service Co., 80 Business Professionals? Ave., NY, NY 10011. IN and principal Angstreich, 510 Madison Ave., 25th State St., Albany, NY 12207-2543. business address: 40 Monument Circle, Fl., NY, NY 10022. DE off. addr.: CSC, DE addr. of LLC: 2711 Centerville Contact Joanne Barbieri at 212-210-0189 for Ste. 700, Indianapolis, IN 46204. Cert. 2711 Centerville Rd., Wilmington, DE Rd., Ste. 400, Wilmington, DE 19808. of Org. filed with IN Sec. of State, 302 19808. Cert. of Form. on file: SSDE, Arts. of Org. filed with DE Secy. of classified advertising opportunities. W Washington St., Indianapolis, IN Townsend Bldg., Dover, DE 19901. State, 401 Federal St., #4, Dover, DE 46204. Purpose: all lawful purposes. Purp.: any lawful activities. 19901. Purpose: Restaurant reviews.

July 21, 2014 | Crain’s New York Business | 19 P018-20CL_CN_20140721.qxp 7/18/2014 2:07 PM Page 20

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Qualification of GSO European Senior Qualification of GSO European Senior Notice of Qualification of HUDSON NOTICE OF QUALIFICATION OF GSO Notice of Qualification of Especial LLC. Debt Feeder Fund LP. Authority filed Debt Fund LP. Authority filed with the PROJECT LLC. Authority filed with European Senior Debt Associates Authority filed with Secy. of State of NY with the Sect. of State of NY (SSNY) on Sect. of State of NY (SSNY) on Secy. of State of NY (SSNY) on LLC. Authority filed with the Sect of (SSNY) on 02/12/14. Office location: 5/12/14. Office Loc: NY County. LP 5/12/14. Office Loc: NY County. LP 06/16/14. Office location: NY County. State of NY (SSNY) on 5/15/14. N.Y. NY County. LLC formed in Delaware formed in Cayman Islands on 4/29/14. formed in Cayman Islands on 4/29/14. LLC formed in Delaware (DE) on Office Loc: NY County. LLC formed (DE) on 02/10/14. SSNY designated SSNY has been designated as agent SSNY has been designated as agent 01/16/14. Princ. office of LLC: 430 in DE on 4/16/14. SSNY has been as agent of LLC upon whom process of LP upon whom process against it of LP upon whom process against it Park Ave., 6th Fl., NY, NY 10022. SSNY designated as agent of LLC upon against it may be served. SSNY shall may be served and shall mail process may be served and shall mail process designated as agent of LLC upon whom whom process against it may be mail process to: National Registered to: 345 Park Avenue, 31st FL, NY, NY to: 345 Park Avenue, 31st FL, NY, NY process against it may be served. SSNY served and shall mail process to: 345 Agents, Inc., 111 Eighth Ave., NY, NY 10154. Cayman Islands address of LP: 10154. Cayman Islands address of LP: shall mail process to c/o Corporation Park Avenue, 31st FL, NY, NY 10154. 10011, also the registered agent. c/o Maples Corporate Services Limited, c/o Maples Corporate Services Limited, Service Co., 80 State St., Albany, NY DE addr. of LLC: 200 Bellevue Pkwy, Address to be maintained in DE: PO Box 309, Ugland House, South PO Box 309, Ugland House, South 12207-2543. DE addr. of LLC: 2711 Ste 210, Wilmington, 19809. Cert of National Registered Agents, Inc., 160 Church St, Grand Cayman, KY1-1104. Church St, Grand Cayman, KY1-1104. Centerville Rd., Ste. 400, Wilmington, Form filed with DE Sect of State, 401 Greentree Dr., Ste. 101, Dover, DE Name/addr. of genl. ptr. avail from Name/addr. of genl. ptr. avail from DE 19808. Arts. of Org. filed with Secy. Federal St, Ste 4, Dover, DE 19901. 19904. Arts of Org. filed with the DE SSNY. Cert. of LP filed with Registrar SSNY. Cert. of LP filed with Registrar of State, 401 Federal St., #3, Dover, DE Purpose: any lawful activity. Secy. of State, Division of Corporations, of Companies, 133 Elgin Avenue, of Companies, 133 Elgin Ave, George 19901. Purpose: Banking reasons. 401 Federal St., Ste. 4, Dover, DE George Town, Grand Cayman KY1- Town, Grand Cayman, KY1-9000. Notice of Formation of Simit & Smith 19901. Purpose: any lawful activities. 9000. Purpose: any lawful activity. Purpose: any lawful activity. Notice of Formation of FOX 11 Waverly Place LLC. Arts. of Org. GROOMING LLC. Arts. of Org. filed filed with Secy. of State of NY (SSNY) Notice of Formation of 91/93/95 Notice is hereby given that a license, Notice of Formation of EAT THIRD with Secy. of State of NY (SSNY) on on 07/02/14. Office location: NY HIGHGATE LLC. Arts. of Org. filed number 1279015, for "On Premises 79 LLC. Arts. of Org. filed with 05/29/14. Office location: NY County. County. SSNY designated as agent with Secy. of State of NY (SSNY) on Liquor License" has been applied for Secy. of State of NY (SSNY) on Princ. office of LLC: 250 Park Ave., 6th of LLC upon whom process against it 07/12/13. Office location: NY County. by the undersigned to serve Liquor 07/02/14. Office location: NY Fl., NY, NY 10177. SSNY designated may be served. SSNY shall mail Princ. office of LLC: 241 W. 37th St., at retail in a restaurant under the County. Princ. office of LLC: 1064 as agent of LLC upon whom process process to: 11 Waverly Place, NY, NY 3rd Fl., NY, NY 10018. SSNY desig- Alcoholic Beverage Control Law at Madison Ave., NY, NY 10028. against it may be served. SSNY shall 10003. Purpose: any lawful activities. nated as agent of LLC upon whom Japonica-U.S.A., Inc. D/B/A SSNY designated as agent of LLC mail process to c/o Ingram Yuzek process against it may be served. Japonica Restaurant, located at 90 upon whom process against it may Gainen Carroll & Bertolotti LLP at the Notice of Formation of Consulate SSNY shall mail process to the LLC University Pl, New York, NY 10003 be served. SSNY shall mail process princ. office of the LLC. Purpose: Hotel Holdings II, LLC, Art. of Org. at the addr. of its princ. office. for on premises consumption. to the LLC at the addr. of its princ. Any lawful activity. filed Sec'y of State (SSNY) 2/20/14. Purpose: Any lawful activity. office. Purpose: Any lawful activity. Office location: NY County. SSNY Notice of formation of VGQ Notice of Formation of LAW OFFICE designated as agent of LLC upon Notice of Formation of 269 WEST 11TH CONTRACTORS LLC Arts. of Org. NOTICE OF FORMATION OF 488 OF STACEY FABRIKANT LLC. Arts. whom process against it may be LLC. Arts. of Org. filed with Secy. of filed with the Sect'y of State of NY Hospitality Group, LLC. Arts of Org of Org. filed with SSNY on 5/23/14. served. SSNY shall mail copy of State of NY (SSNY) on 07/02/14. (SSNY) on 2/10/2014. Office location, filed with Secy of State of NY (SSNY) Office location: New York County. process to c/o Hampshire Hotels Office location: NY County. Princ. County of New York. SSNY has been on 02/10/14. Office location: NY SSNY designated as agent of LLC Mgmt., 200 W. 55th St., Ste. 42, NY, NY office of LLC: 269 W. 11th St., NY, NY designated as agent of the LLC upon County. SSNY designated as agent whom process against may be 10019. Purpose: any lawful activities. 10014. SSNY designated as agent of whom process against it may be upon whom process may be served served. SSNY shall mail process to: LLC upon whom process against it served. SSNY shall mail process to: and shall mail copy of process C/O THE LLC, 2 East End Ave. #C, Notice of Formation of Rockledge HV may be served. SSNY shall mail The LLC, 81 Franklin St., New York against LLC to: 95 Delancey Street, NY, NY 10075. Purpose: to engage LLC, Art. of Org. filed Sec'y of State process to c/o Corporation Service NY 10013. Purpose: any lawful act. New York, NY 10002. Principal busi- in the practice of Law. (SSNY) 5/13/14. Office location: NY Co., 80 State St., Albany, NY 12207. ness address: 790 Eighth Avenue, NY, County. SSNY designated as agent Purpose: Any lawful activity. Notice of Formation of Manhattan NY 10019. Purpose: any lawful act. Notice of Formation of Consulate of LLC upon whom process against Dental Management Company LLC. Hotel Holdings I, LLC, Art. of Org. it may be served. SSNY shall mail Notice of Qual. of Scopia Windmill Arts. of Org. filed with Secy. of State Notice of Qual. of SLG Manager LLC, filed Sec'y of State (SSNY) 2/20/14. copy of process to NRAI, 111 Eighth SPV 3 LLC, Auth. filed Sec'y of State of NY (SSNY) on 7/2/14. Office loca- Auth. filed Sec'y of State (SSNY) Office location: NY County. SSNY Ave., NY, NY 10011. Purpose: any (SSNY) 2/3/14. Office loc.: NY County. tion: NY County. SSNY designated 5/5/14. Office loc.: NY County. LLC designated as agent of LLC upon lawful activities. LLC org. in DE 1/30/14. SSNY desig. as agent of LLC upon whom org. in DE 4/29/14. SSNY desig. as whom process against it may be as agent of LLC upon whom process process against it may be served. agent of LLC upon whom process served. SSNY shall mail copy of Notice of Formation of Trilogy Advisors against it may be served. SSNY shall SSNY shall mail process to: 286 against it may be served. SSNY shall process to c/o Hampshire Hotels LLC. Arts. of Org. filed with Secy. of mail copy of proc. to Att: Aaron Morse, Madison Ave., Ste. 1000, NY, NY mail copy of proc. to NRAI, 111 Mgmt., 200 W. 55th St., Ste. 42, NY, NY State of NY (SSNY) on 6/23/14. 152 W. 57th St., NY, NY 10019. DE 10017. Purpose: any lawful activity. Eighth Ave., NY, NY 10011, the Reg. 10019. Purpose: any lawful activities. Office location: NY County. SSNY off. addr.: CSC, 2711 Centerville Rd., Agt. upon whom proc. may be served. designated as agent of LLC upon Wilmington, DE 19808. Cert. of Form. Metal Dog Consulting NY, LLC. Arts. DE off. addr.: 160 Greentree Dr., Ste. whom process against it may be on file: SSDE, Townsend Bldg., Dover, of Org. filed with Secy. of State of NY Notice of Qual. of Valarc Fund, LP, 101, Dover, DE 19904. Cert. of Form. Auth. filed Sec'y of State (SSNY) served. SSNY shall mail process to: DE 19901. Purp.: any lawful activities. (SSNY) on 06/02/14. Off. loc.: NY Co. on file: SSDE, Townsend Bldg., Dover, Laurence A. Levy, 1251 Avenue of the SSNY des. as agent of LLC upon 8/29/13. Office loc.: NY County. LP Notice of Formation of LLC. Fifth DE 19901. Purp.: any lawful activities org. in DE 8/15/13. SSNY desig. as Americas, 49th Fl., NY, NY 10020. whom process may be served. SSNY Purpose: any lawful act or activity. Avenue Apartment, LLC. Arts. of Org. shall mail process to 330 E 63rd St., agent of LP upon whom process filed with Secy. of State of NY (SSNY) Notice of Formation of RiaBulga, LLC, against it may be served. SSNY shall #4M, New York, NY 10065. Purpose: Art. of Org. filed Sec'y of State (SSNY) Notice of Formation of alayna nicole, on 4/29/2014. Office Location: New General. mail copy of proc. to Att: Hari LLC. Arts. of Org. filed with NY Dept. York County. SSNY designated as 4/14/14. Office location: NY County. Ramanan, 900 Third Ave., Ste. 202, SSNY designated as agent of LLC of State on 6/24/14. Office location: agent of LLC upon whom process Notice of Formation of OPENING 1, NY, NY 10022. DE off. addr.: CSC, NY County. Sec. of State designated against it may be served. SSNY upon whom process against it may be 2711 Centerville Rd., Wilmington, DE LLC. Arts. of Org. filed with Secy. of served. SSNY shall mail copy of agent of LLC upon whom process shall mail process to: Ganfer & State of NY (SSNY) on 05/16/14. 19808. Cert. of LP on file: SSDE, against it may be served and shall Shore, LLP, 360 Lexington Ave., New process to 3 Sheridan Sq., 9J, NY, NY Townsend Bldg., Dover, DE 19901. Office location: NY County. SSNY 10014. Purpose: any lawful activities. mail process to the principal business York, NY 10017. Duration: perpetual. designated as agent of LLC upon Name/addr. of each gen. ptr. avail. at address of the LLC: 150 W 74th St., Purpose: Any lawful activity. whom process against it may be Notice of Formation of Sagamore SSNY. Purp.: any lawful activities. Apt 2E, NY, NY 10023-2312, Attn: served. SSNY shall mail process to Crescent, LLC, Art. of Org. filed Sec'y Notice of Qualification of DYE Fine Notice of Formation of NEBULOUS Alayna N. Anderson. Purpose: all c/o Schiff Hardin LLP, Attn: Robert S. of State (SSNY) 6/2/14. Office loca- Art, LLC. Authority filed with NY Dept. WHITE LLC. Arts. of Org. filed with lawful purposes. Appel, 666 Fifth Ave., 17th Fl., NY, NY tion: NY County. SSNY designated of State on 6/2/14. Office location: SSNY on 5/8/14. Office location: 10103. Purpose: Any lawful activity. as agent of LLC upon whom process 138-34 Equities LLC Arts of Org filed NY County. LLC formed in DE on New York County. SSNY designated against it may be served. SSNY shall with NY Sec of State (SSNY) on 5/13/14. NY Sec. of State designated Notice of Qualification of ARHC as agent upon whom process mail copy of process to Philip Brody, 4/28/14. Office: New York County. agent of LLC upon whom process NCWTNNY01, LLC. Authority filed against it may be served. SSNY shall 5 Fifth Ave., 15th Fl., NY, NY 10003. SSNY designated as agent of LLC against it may be served and shall with Secy. of State of NY (SSNY) on mail process to: c/o THE LLC, 19 Purpose: any lawful activities. upon whom process may be served. mail process to: DYE Fine Art, LLC, 24 06/23/14. Office location: NY County. Jones St. #5, NY, NY 10014. SSNY shall mail process to: 28 Vestry St., NY, NY 10013, principal LLC formed in Delaware (DE) on LAAH ACQUISITIONS LLC, Arts. of Purpose: all lawful activities. Graham St, Alpine, NJ 07620. business address. DE address of LLC: 06/17/14. SSNY designated as agent Org. filed with the SSNY on 07/10/2014. General Purposes. The Corporation Trust Co., 1209 of LLC upon whom process against it Office loc: NY County. SSNY has Notice of Formation of Bury LLC. Arts. Orange St., Wilmington, DE 19801. may be served. SSNY shall mail been designated as agent upon of Org. filed with Secy. of State of NY Sason Builders LLC. Arts. of Org. filed Cert. of Form. filed with DE Sec. of process to c/o CSC, 80 State St., whom process against the LLC may (SSNY) on 05/29/14. Office location: with Secy. of State of NY (SSNY) on State, 401 Federal St., Dover, DE Albany, NY 12207. DE addr. of LLC: be served. SSNY shall mail process NY County. SSNY designated as 06/06/14. Off. loc.: NY Co. SSNY des. 19901. Purpose: all lawful purposes. 2711 Centerville Rd., Ste. 400, to: 66 Pearl St., NY, NY 10004. agent of LLC upon whom process as agent of LLC upon whom process Wilmington, DE 19808. Arts. of Org. Purpose: Any Lawful Purpose. against it may be served. SSNY shall may be served. SSNY shall mail 747 STUYVESANT IV, L.P. filed an App. filed with DE Secy. of State, Div. of mail process to: 515 East 5th St., Apt. process to c/o Magna Group, Attn: for Authority with the NY Department Corps., 401 Federal St., Ste. 4, Dover, Notice of Registration of Siri & 6D, NY, NY 10009. Purpose: any Joshua Sason, 5 Hanover Sq., New of State on 2/13/2014. Jurisdiction: DE, DE 19901. Purpose: Any lawful activity. Glimstad LLP, Cert. of Reg. filed Sec'y lawful activities. York, NY 10004. Purpose: General. and the date of its formation is of State (SSNY) 5/1/14. Office loca- 4/16/2013. Office location in NYS: New Notice of Qualification of Crestview tion: NY County. SSNY designated Notice of Qualification of Fitness Notice of Qualification of WB58E66 York County. The Secretary of State Holdings III (DE Offshore), L.P. as agent of LLP upon whom process Video Ventures, LLC. Authority filed LLC. Authority filed with Secy. of of NY ("SSNY") is designated as Authority filed with NY Dept. of State against it may be served. SSNY shall with NY Dept. of State on 6/11/14. State of NY (SSNY) on 06/02/14. agent upon whom process against it on 6/16/14. Office location: NY County. mail copy of process to 120 E. 31st Office location: NY County. Princ. bus. Office location: NY County. LLC may be served. The address to which Princ. bus. addr.: 667 Madison Ave., St., NY, NY 10016. Name/addr. of each addr.: 100 Universal City Plz., formed in Delaware (DE) on 05/28/14. the SSNY shall mail a copy of such 10th Fl., NY, NY 10065. LP formed in gen. ptr. avail. at SSNY. Purpose: to Universal City, CA 91608. LLC formed Princ. office of LLC: 10 Glenville St., process is: Attn: Mr. Gijs van Thiel, c/o DE on 6/10/14. NY Sec. of State practice the profession of Law. in DE on 6/4/14. NY Sec. of State 3rd Fl., Greenwich, CT 06831. SSNY 747 Capital, LLC, 880 Third Ave., 17th designated agent of LP upon whom designated agent of LLC upon whom designated as agent of LLC upon Flr. NY NY 10022 The address in its process against it may be served and Notice of Formation of Pyramid process against it may be served whom process against it may be jurisdiction if required or the office shall mail process to: CT Corporation Investors JV LLC, Art. of Org. filed and shall mail process to: c/o CT served. SSNY shall mail process to address: 2711 Centerville Rd., Suite System, 111 8th Ave., NY, NY 10011. Sec'y of State (SSNY) 10/18/13. Corporation System, 111 8th Ave., NY, c/o Corporation Service Co., 80 400, Wilmington DE 19808. A copy DE addr. of LP: c/o The Corporation Office location: NY County. SSNY NY 10011, regd. agent upon whom State St., Albany, NY 12207-2543. of the Articles of Organization may Trust Co., 1209 Orange St., Wilmington, designated as agent of LLC upon process may be served. DE addr. of DE addr. of LLC: 2711 Centerville be obtained from Sect'y of State of DE 19801. Name/addr. of genl. ptr. whom process against it may be LLC: c/o The Corporation Trust Co., Rd., Ste. 400, Wilmington, DE 19808. DE, 401 Federal St., Dover DE 19901. available from NY Sec. of State. Cert. served. SSNY shall mail copy of 1209 Orange St., Wilmington, DE Arts. of Org. filed with DE Secy. of The list of names and addresses of of LP filed with DE Sec. of State, 401 process to Kriss & Feuerstein, 360 19801. Cert. of Form. filed with DE Sec. State, John G. Townsend Bldg., 401 all general partners is available from Federal St., Dover, DE 19901. Lexington Ave., NY, NY 10017. of State, 401 Federal St., Dover, DE Federal St., Ste. 4, Dover, DE 19901. the Secretary of State. The purpose Purpose: all lawful purposes. Purpose: any lawful activities. 19901. Purpose: all lawful purposes. Purpose: Any lawful activity. of the LP is any lawful act.

20 | Crain’s New York Business | July 21, 2014 20140721-NEWS--0021-NAT-CCI-CN_-- 7/17/2014 4:35 PM Page 1

FOR THE RECORD

● Health and Hospitals Corp. ● DataVision signed a 10-year lease for June 24, in a transaction worth Requests proposals by noon on July 30 to 5,500 square feet at 50 W. 23rd St. in the $3,504,000. In the same period, he sold ABOUT THIS SECTION provide HHC facilities with radio- Flatiron district.The computer and 100,000 shares at prices ranging from FOR THE RECORD is a weekly listing of information from the public record that pharmaceutical supplies. Bid documents consumer electronics retailer will relocate $59.38 to $59.73 per share, in a can help businesspeople in the New York area find opportunities, potential are available at MedPricer.com.To its flagship store from Fifth Avenue and transaction worth $5,947,968. He now make inquiries, contact Christopher 39th Street to the 13-story Jewelcor directly holds 78,042 shares. new clients and updates on competitors. Pierce at (650) 380-4562 or Building.The tenant was represented by To ask questions or get more information on this section, contact Crain’s [email protected]. Robert Kunikoff of Lee & Associates. Ellis E. Cousens, executive vice research department at [email protected]. The landlord,Two Trees Management, president and chief operations officer, ● Housing Authority was represented in-house by Elizabeth exercised options on 66,432 shares of Requests proposals by 2 p.m. on July 29 Bueno and Dan Conlon.The asking rent common stock at prices ranging from for stenographic reporting and was $250 per square foot. $35.04 to $47.55 per share on June 17, NEW IN TOWN The creditors with the largest unsecured transcription services. Bid documents in a transaction worth $2,783,542. On claims are M&T Bank, owed $21,582.97; are available for download at ● Keratinbar signed a 10-year lease for the same day, he sold 66,432 shares at Companies that would like to have details Florek & Endres, owed $17,530.81; and www.nyc.gov/nychabusiness. 2,200 square feet at 342 W. 14th St. in prices ranging from $59.00 to $60.00 of openings published should submit Cargo Trans Inc., owed $4,000. Nonelectronic documents are subject to Chelsea. The new store will be the per share, in a transaction worth descriptions following this format to a nonrefundable $25 fee, payable by keratin treatment beauty salon’s second $3,949,488. He now directly holds [email protected], with ● Pretty Girl Inc. certified check or money order to Chelsea location. The tenant was 126,211 shares. “New in Town” in the subject line. 1407 Broadway, Manhattan NYCHA at 90 Church St., sixth floor, represented by Alexander Hill of Filed for Chapter 11 bankruptcy Manhattan. To make inquiries, contact Eastern Consolidated and Jeff Shapiro ● Starwood Hotels & Resorts Worldwide ● Emeline’s Diner protection on July 2. The filing cites Meddy Ghabaee at (212) 306-4839 or of NYC Restaurant Realty.The Inc. (HOT) 373 Lewis Ave., Brooklyn estimated assets of $0 to $50,000 and [email protected]. landlord, 345 W. 13th St. Frits van Paasschen, chief executive and The family-owned, sit-down diner estimated liabilities of $1,000,001 to Condominium, negotiated directly with president, exercised options on 51,435 opened in Bedford-Stuyvesant. It $10 million. The creditors with the ● Office of the Comptroller the tenant’s brokers. The asking rent was shares of common stock at $48.61 per specializes in breakfast and lunch, and largest unsecured claims are Osama Requests proposals by 2 p.m. on Aug. 1 $195 per square foot. share on June 19, in a transaction worth its menu features coconut French toast Hazza Saleh, owed $3,365,000; Mega for legal services in support of private- $2,499,998. On the same day, he sold and crabcakes. Wear, owed $1,283,566.02; and One market real estate investments by New ● Patsy’s Pizzeria signed a lease for 51,435 shares at $81.01 per share, in a Step Up, owed $312,187.90. York City Retirement Systems. The 1,400 square feet at 450 Dean St. in Park transaction worth $4,166,842. He now ● La Newyorkina proposal request is available for Slope. The Manhattan-based pizza directly holds 246,915 shares. 61 Commerce St., Brooklyn download at www.comptroller.nyc.gov shop’s first Brooklyn outpost will be The ice-pop shop opened in Red Hook. GOVERNMENT CONTRACT /forms-n-rfps/rfps-n-solicitations. To located across from Barclays Center. ● CBS Corp. (CBS) It offers Mexican-style ice treats called OPPORTUNITIES make inquiries, contact Eric Wollman at Dan Marks and Joey Terzi of TerraCRG Sumner M. Redstone, executive paletas, plus cookies, brownies, brittles, (212) 669-8235 or bamcontracts@ represented both the tenant and the chairman, exercised options on 95,600 candies and sweet sauces. Following are selected contract comptroller.nyc.gov. landlord, Dalen, in the deal. The asking shares of common stock at $30.21 per opportunities recently announced by New rent was $100 per square foot. share between June 25 and July 2, in a ● OptimEyes Vison of LIC York City agencies.To learn how to sell transaction worth $2,888,076. On June 5-27 50th Ave., Queens goods and services to city government, visit REAL ESTATE DEALS 18, he sold 47,800 shares at $61.23 per The optometry-and-eyewear shop www.nyc.gov/selltonyc. For a searchable STOCK TRANSACTIONS share, in a transaction worth $2,926,794, opened in Long Island City.The vision- database of current procurement notices, Companies that would like to have details and on July 2, he sold 47,800 shares at care boutique is the neighborhood’s first visit www.nyc.gov/cityrecord. Listings are of their recent transactions appear in these Following are recent insider transactions at $64.30 per share, in a transaction worth optometric practice. alphabetical by category and department. listings should email descriptions following New York’s largest publicly held companies $3,073,540. He now directly holds this format to MSingleton@crainsnew filed with the Securities and Exchange 8,829,690 shares. CONSTRUCTION SERVICES york.com, with “Real estate transaction” in Commission by executives and major COMPANY MOVES ● Department of Design and Construction the subject line, or enter them online at shareholders. Listings are in order of ● Time Warner Cable (TWC) Seeks competitive sealed bids by 11 a.m. crainsnewyork.com/submitadeal. Deals are transaction value.The information was Robert D. Marcus, chairman and chief Companies that would like to have details on July 31 for construction of storm and listed in order of square footage. obtained from Thomson Reuters. executive, exercised options on 16,000 of recent moves published should submit sanitary sewers and appurtenances on shares of common stock at $72.05 per descriptions following this format to 115th Street between Poppenhusen COMMERCIAL ● John Wiley & Sons Inc. (JW/A) share on June 20, in a transaction worth [email protected], with Avenue and 14th Avenue, etc., in ● Bank of New York Mellon Corp. William J. Pesce, retired president and $1,152,800. On the same day, he sold “Company Moves” in the subject line. Queens. Bid documents are available at signed a 20-year lease for 350,000 chief executive, exercised options on 16,000 shares at $144.19 per share, in a www.nyc.gov/buildnyc and require a $35 square feet at 225 Liberty St. in lower 100,000 shares of common stock at transaction worth $2,306,960. He now ● Café Noir deposit, payable by company check or Manhattan. The financial giant’s new $35.04 per share between June 20 and directly holds 61,281 shares. Ⅲ 35 Lispenard St., Manhattan money order. To make inquiries, contact headquarters will occupy seven floors at The Casablanca-inspired café relocated Emmanuel Charles at (718) 391-2200 Brookfield Place. The tenant was from SoHo to TriBeCa. Its menu or [email protected]. represented by Michael Berg, Peter features a roasted whole chicken, plus Riguardi and Michael Shenot of Jones DEALS ROUNDUP quinoa “couscous.” ● Department of Homeless Services Lang LaSalle. The landlord, Brookfield Seeks competitive sealed bids by 11 a.m. Office Properties, was represented in- ● Old Tbilisi Garden on July 29 for on-call general house by David Cheikin, Jerry Larkin TRANSACTION SIZE 174 Bleecker St., Manhattan construction services at adult and family and Alex Liscio. The asking rent was not TARGET/SELLERS (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE The Georgian restaurant, formerly shelters citywide. Free solicitation disclosed. Seragon Pharmaceuticals $1,725.0 Genentech Inc. SB M&A called Tbilisi, relocated from Gravesend, packages can be picked up by vendors at Inc./Topspin Partners, Brooklyn, to Greenwich Village. It 33 Beaver St., Manhattan. To make ● Pzena Investment Management signed OrbiMed Advisors serves khachapuri cheese bread, meat inquiries, contact J. Destra at a 10-year lease for 37,000 square feet at (Manhattan), Aisling 320 Park Ave. Capital (Manhattan), The dumplings and other traditional dishes. (212) 361-8498 or [email protected]. The firm will move its Column Group, Topspin headquarters from West 45th Street to Associates, venBio ● Department of Parks and Recreation the 30-floor tower.The tenant was GlobalCollect BV/Welsh, $1,119.4 Ingenico S.A. SB M&A BANKRUPTCIES Seeks competitive sealed bids by 10:30 represented by Ken Ruderman of Savills Carson, Anderson & a.m. on July 31 for construction of a Studley.The landlord, Mutual of Ameri- Stowe (Manhattan) The following listings are selected from the comfort station in Ferry Point Park in ca Life Insurance Co., was represented by Flagstone Foods/ $875.0 Bay Valley Foods SB M&A most recent available filings by companies the Bronx. Bid documents are available Frank Doyle, David Kleiner and Dan Gryphon Investors, seeking bankruptcy protection in the at the Olmsted Center, Room 64, Kollar of Jones Lang LaSalle. Asking Prospect Capital Southern and Eastern Districts of New Flushing Meadows Corona Park, rents in the building range from the mid- Management (Manhattan) York. Information was obtained from U.S. Queens, for a $25 fee, payable by $70s to the low $100s per square foot. Small Bone Innovations $375.0 Stryker Corp. SB M&A Bankruptcy Court records available on company check or money order to the Inc./HarbourVest Partners, Public Access to Court Electronic Records. City of New York, Parks and Recreation. ● Renegade signed a seven-year lease for Viscogliosi Brothers Listings are in alphabetical order. To make inquiries, contact Michael 7,100 square feet at 437 Fifth Ave. in (Manhattan), NGN Capital Shipman at (718) 760-6705 or midtown. The social-media and (Manhattan), Trevi Health ● Capitale Ventures I, dba Espace [email protected]. marketing agency will occupy the entire Ventures (Manhattan), DFJ Esprit Secondaries, 635 W. 42nd St., Manhattan fourth floor in the building, at 39th New Health Capital Filed for Chapter 11 bankruptcy GOODS AND SERVICES Street. The tenant was represented by Partners (Manhattan), protection on July 2. The filing cites ● Department of Citywide Administrative Michael Pinney of Signature Partners. Xeraya Capital Sdn. Bhd. Services estimated assets of $100,001 to The landlord, Joseph P.Day Realty, was Portfolio of seven noncore $371.5 Blackstone Real Estate Advisors SB M&A $500,000 and estimated liabilities of Requests information by 10:30 a.m. on represented in-house by Rick Brickell. assets/Mirvac Group (Manhattan) $500,001 to $1 million. The creditors July 31 to support the development of The asking rent was $57 per square foot. Hidroelectrica Piedra del $346.1 Central Puerto S.A. SB M&A with the largest unsecured claims are requirements for loading, transporting Aguila S.A./Merrill Lynch Seth Greenberg, owed $320,000; Sondra and dispensing petroleum and other fuel RETAIL & Co. (Manhattan), Merrill Greenberg, owed $50,000; and Danzig products in the event of a fuel supply ● The Manhattan Athletic Club signed a Lynch Pierce Fenner & Smith Fishman & Decea, owed $18,085. disruption. Vendors can download a 15-year lease for 15,000 square feet at Inc. (Manhattan) asset copy of this request from a856- 388 Bridge St. in downtown Brooklyn. management arm, Sociedad ● Chariot International Inc., internet.nyc.gov/nycvendoronline/home The health club’s first Brooklyn location Argentina de Energía S.A. dba Bumper Badger .asp. Bid documents can be requested by will occupy the fifth and sixth floors of Selected deals announced for the week ended July 3 involving companies in metro New York. 124 29th St., Brooklyn contacting Vendor Relations at the 53-story luxury residential tower. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing shares Filed for Chapter 7 bankruptcy [email protected] or Representatives from the Manhattan of a company without the participation of a financial buyer. FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing shares of a company with the participa- protection on July 2.The filing cites (212) 669-8610. To make inquiries, Athletic Club and the landlord, the Stahl tion of a financial buyer. GCI: Growth capital investment represents new money invested in a estimated assets of $50,001 to $100,000 contact Kamboj Kaleem at Organization, negotiated directly.The company for a minority stake. source: capitaliq and estimated liabilities of $0 to $50,000. (212) 386-6370. gym agreed to pay $40 per square foot.

July 21, 2014 | Crain’s New York Business | 21 20140721-NEWS--0022-NAT-CCI-CN_-- 7/17/2014 4:36 PM Page 1

THE CoStar’s Top Manhattan Office Leases LIST Biggest transactions in the first half of 2014, ranked by square feet THE SCOOP TRENDS NEW PACK LEADER HOTTEST NEIGHBORHOODS n a powerful new sign of the gathering strength of New York City’s economy, office-space leasing has picked up sharply. In the first half of the year, Technology, media and advertising firms dethroned financial Number of deals in the top four submarkets the square footage leased in the 50 largest deals totaled 9 million square feet, services, the longtime leader, by signing the greatest number according to CoStar data, a 36% jump from the year-earlier level. of large leases in the first half of 2014. Plaza district What’s more, that gain came despite a subpar performance from the tra- Technology/media/advertising 7 ditional driver of Manhattan’s office market: the financial industry. In the first half 16 I Financial of the year, the number of top 50 leases signed by companies in that sector was World Trade Center 11 swamped by tech, media and advertising firms, with a total of only 11 for the long- 5 time leader and 16 for the rising sector. Professional 10 “Finance hiring is slow, while skilled computer programmers have become an Retail Financial district increasingly hot commodity,” said Adrian Ponsen, a senior economist at CoStar. 6 5 “Only firms located in the most attractive cities can compete to hire and retain them. Other In contrast,the finance industry has a broader base of able workers across the coun- 4 Penn Plaza/Garment Government try and has been able to outsource many of its operations to cheaper locations.” 5 In another encouraging sign for the market, new leases and expansions account- 3 ed for 27 of the top 50 deals in the period, while renewals accounted for 22, and subleases sank to just one.In the years after the crash,the latter two categories frequent- ly accounted for well more than half of leases. Now more tenants are choosing to DEALS BY TYPE take the more daring and expensive route of signing new leases rather than renew- ing their old ones and staying put. “The declining number of subleases and the ris- New leases beat out renewals by a large margin as tenants ing number of new leases are signs of an improving market,” said Mr. Ponsen. gained confidence. Nowhere did that market show more signs of improvement than downtown. 9,007,696 Spurred in part by tenants seeking to get the maximum bang for their rental dol- Total square footage leased in the 50 largest deals of the first lars in Manhattan’s most affordable market for office space, 10 of the top 50 deals half of 2014—up 36% from the year-earlier period. were logged in the downtown market, for a total of 2.2 million square feet. “Downtown offers more affordable rents, which are appealing to tenants while 13 renewals the economy is still somewhat slow,” Mr. Ponsen said. The average asking rent downtown is about $45 per square feet, according to CoStar. That compares with 24 about $70 per square foot in the Plaza district, which logged the biggest number of new leases 9 leases on its own, but in terms of square footage significantly lagged the total in the renewals combined World Trade Center and financial district submarkets. with Collectively,tech,media and advertising firms have taken the No.1 spot for most expansions deals done, but they still trailed the financial sector by 193,918 square feet leased during the first half of the year.

—gianna lakenauth buck ennis 1 sublease 3 expansions alone

Address Square feet Tenant Tenant representative Landlord/sublandlord Landlord representative Submarket

1 11 Madison Ave.1 1,066,132 Credit Suisse CBRE Sapir Organization CBRE; Newmark Grubb Knight Frank Gramercy Park 2 225 Liberty St.2 695,714 Time Publishing Ventures Inc. Savills Studley Brookfield Office Properties Inc. Brookfield Office Properties Inc. World Trade Center 3 11 Madison Ave.2 547,996 Sony Corp. of America CBRE Sapir Organization CBRE Gramercy Park 4 345 Park Ave.3 489,495 Blackstone Newmark Grubb Knight Frank Rudin Management Rudin Management Plaza district 5 1221 Sixth Ave.2 440,218 White & Case Jones Lang LaSalle Rockefeller Group Cushman & Wakefield Inc. Times Square 6 1 Chase Manhattan Plaza1 369,588 Milbank Tweed Hadley & McCloy Cushman & Wakefield Inc. Summit Glory Newmark Grubb Knight Frank Financial district 7 1290 Sixth Ave.2 355,000 Neuberger Berman Newmark Grubb Knight Frank Vornado Realty Trust Cushman & Wakefield Inc. Plaza district 8 225 Liberty St.2 358,278 Bank of New York Mellon Jones Lang LaSalle Brookfield Office Properties Inc. Brookfield Office Properties Inc. World Trade Center 9 2 Penn Plaza1 257,541 MSG Holdings Cushman & Wakefield Inc. Vornado Realty Trust Vornado Realty Trust Penn Plaza/Garment 10 245-249 W. 17th St.2 180,000 Twitter Jones Lang LaSalle Savanna Real Estate Fund Newmark Grubb Knight Frank Chelsea 11 330 W. 34th St.2 178,342 New York & Co. CBRE Vornado Realty Trust Vornado Realty Trust Penn Plaza/Garment 12 1 New York Plaza2 176,121 Macmillan Science and Education Colliers International Brookfield Office Properties Inc. CBRE Financial district 13 825 Seventh Ave.1 172,975 MEC CBRE Edward J. Minskoff Equities Inc.; Edward J. Minskoff Equities Inc. Columbus Circle Vornado Realty Trust 14 25 Broadway2 172,774 Teach for America CBRE ACTA Realty CBRE World Trade Center 15 237 Park Ave.3 166,000 Jennison Associates CBRE RXR Realty Jones Lang LaSalle Grand Central 16 770 Broadway4 159,733 J.Crew Savills Studley Vornado Realty Trust Vornado Realty Trust Greenwich Village 17 199 Water St.3 159,593 Allied World Assurance Co. (U.S.) Newmark Grubb Knight Frank Jack Resnick & Sons Inc. Cushman & Wakefield Inc.; Insurance district Jack Resnick & Sons Inc. 18 520 Madison Ave.3 140,466 Carlyle Investment Management Cushman & Wakefield Inc. Tishman Speyer Tishman Speyer Plaza district 19 112 W. 34th St.2 131,117 Macy’s CBRE Empire State Realty Trust Newmark Grubb Knight Frank Penn Plaza/Garment 20 757 Third Ave.2 130,384 Grant Thornton DTZ RFR Realty Jones Lang LaSalle Plaza district 21 590 Madison Ave.1 121,055 IBM Corp. CBRE State Teachers Retirement Edward J. Minskoff Equities Inc. Plaza district System of Ohio 22 51 Astor Place2 118,435 IBM Watson Group CBRE Edward J. Minskoff Equities Inc. Jones Lang LaSalle Greenwich Village 23 113-133 W. 18th St.2 115,600 WeWork CBRE Wasserstein Enterprises Newmark Grubb Knight Frank Chelsea 24 1 Penn Plaza5 113,945 Publicis Groupe Byrnam Wood Vornado Realty Trust/Direct Brands Inc. Savills Studley Penn Plaza/Garment 25 11 W. 42nd St.3 113,423 Michael Kors (USA) Inc. Cushman & Wakefield Inc. Tishman Speyer Tishman Speyer Times Square 26 250 Vesey St.2 112,000 NY County District Attorney’s Office Newmark Grubb Knight Frank Brookfield Office Properties Inc. Brookfield Office Properties Inc. World Trade Center Continued on Page 24

22 | Crain’s New York Business | July 21, 2014 LARGEST OFFICE LEASE IN MAJOR OFFICE LEASE IN SAN FRANCISCO HISTORY LONDON SKYSCRAPER

WELCOME TO SALESFORCE TOWERS Cushman & Wakefield recently represented salesforce.com, the world’s leading CRM technology platform, in a record-breaking 714,000 sf lease for its world headquarters office at 415 Mission Street in San Francisco, CA and a 77,000 sf lease at 110 Bishopsgate in London, making them the largest tenant in the building.

CN016736.indd 1 6/30/14 2:15 PM 20140721-NEWS--0024-NAT-CCI-CN_-- 7/18/2014 2:07 PM Page 1

THE LIST CoStar’s Top Manhattan Office Leases

Address Square feet Tenant Tenant representative Landlord/sublandlord Landlord representative(s) Submarket

27 79 Madison Ave.2 108,000 WeWork Colliers International 79 Madison LLC Colliers International Gramercy Park 28 90 Park Ave.1 102,436 Factset Research Systems Inc. Cushman & Wakefield Inc. Vornado Realty Trust Vornado Realty Trust Grand Central 29 770 Broadway4 97,067 Facebook Newmark Grubb Knight Frank Vornado Realty Trust Vornado Realty Trust Greenwich Village 30 1325 Sixth Ave.1 96,769 Warner Brothers Savills Studley Paramount Group Paramount Group Columbus Circle 31 787 Seventh Ave.3 96,221 BNP Paribas Cushman & Wakefield Inc. AXA Financial Inc. CBRE Columbus Circle 32 80 Maiden Lane1 94,896 City of New York Direct Deal AM Property Holding Corp. AM Property Holding Corp. Financial district 33 1 New York Plaza2 90,194 Revlon Cushman & Wakefield Inc. Brookfield Office Properties Inc. CBRE Financial district 34 1540 Broadway1 89,341 Duane Morris Newmark Grubb Knight Frank HSBC Alternative Investments Ltd.; CBRE Times Square Edge Funds 35 875 Third Ave.2 87,126 Troutman Sanders CBRE Eastgate Realty Jones Lang LaSalle Plaza district 36 320 W. 13th St.2 86,962 Theory Holdings Newmark Grubb Knight Frank Sage Realty Corp. Sage Realty Corp. Hudson Square 37 90 Park Ave.3 82,647 Foley & Lardner Jones Lang LaSalle Vornado Realty Trust Vornado Realty Trust Grand Central 38 1 Penn Plaza1 80,191 Cisco Systems Jones Lang LaSalle Vornado Realty Trust Vornado Realty Trust Penn Plaza/Garment 39 605 Third Ave.1 78,754 AECOM CBRE Fisher Brothers Fisher Brothers Grand Central 40 333 Seventh Ave.2 77,000 FIT Cassidy Turley Samco Properties Samco Properties Chelsea 41 75 Ninth Ave.4 76,361 Google CBRE Jamestown Newmark Grubb Knight Frank Chelsea 42 11 Broadway2 75,000 Orthodox Union of Cushman & Wakefield Inc. Bowling Green Associates Braun Management World Trade Center Jewish Congregations 43 250 W. 55th St.2 73,400 Al Jazeera Network CBRE Boston Properties Inc. CBRE Columbus Circle 44 1251 Sixth Ave.1 72,200 Sentinel Real Estate Jones Lang LaSalle Mitsui Fudosan America Newmark Grubb Knight Frank Times Square 45 520 Madison Ave.2 70,233 Davidson Kempner Jones Lang LaSalle Tishman Speyer Tishman Speyer Plaza district 46 150 Varick St.3 69,750 Wieden + Kennedy Inc. Savills Studley Greiner-Maltz Company Inc. Greiner-Maltz Co. Hudson Square 47 120 Broadway2 68,350 Trinity Wall Street Cushman & Wakefield Inc. Silverstein Properties Inc. Silverstein Properties Inc. Financial district 48 59 Maiden Lane3 66,573 Office of the State Comptroller Newmark Grubb Knight Frank Amtrust Realty Corp. Newmark Grubb Knight Frank Insurance district 49 401 Park Ave. South2 63,300 WeWork CBRE Meringoff Properties Meringoff Properties Gramercy Park 50 225 Varick St.1 63,000 Workman Publishing Cushman & Wakefield Inc. Trinity Real Estate Trinity Real Estate Hudson Square

This list includes leases with terms of more than two years. 1-Renewal. 2-New. 3-Renewal and expansion. 4-Expansion. 5-Sublease. CoStar Group Inc., a provider of information services to the commercial real estate industry and related businesses, conducts ongoing, extensive research to produce and maintain the largest and most comprehensive database of commercial real estate information. For more information, visit www.costar.com or call (800) 204-5960.

REAL ESTATE

of 96th Street hit $1,171 per square PERSON OF INTEREST foot,driven by an ongoing explosion in the cost of retail space. NYC sales near AS NEW YORK CITY’S POLICE COMMISSIONER for a dozen years under Mayor So broad were the gains and so Michael Bloomberg, Ray Kelly helped foil 16 terrorist plots against the city. large the scale that Massey Knakal Mr. Kelly, 72, left that job at the Chairman Robert Knakal peppered ’07 bubble levels his overview of the market with the beginning of this year, but he’s planning to word “remarkable.”At one point,he continue his efforts to safeguard people’s itywide, property sales of all types were on a tear by virtually used it three times in a single sen- lives and property, perhaps on an even any measure in the first half of this year, according to a mid- tence. Once, Mr. Knakal went fur- broader geographic scale. In March, he July report from Massey Knakal Realty Services.The total dol- ther, describing the 45% gain in the joined real estate services firm Cushman & lar volume came to $27.4 billion—the highest since the peak per-square-foot cost of Manhattan Wakefield to head a new risk manage- of the property bubble in 2007 and up 88% from the first six retail properties as “extraordinary.” ment practice and help the company’s Cmonths of 2013. —erik ipsen many corporate clients around the Meanwhile, at 2,643, the number of property sales citywide in the first globe manage their security needs. half of the year is on pace to set an all-time record this year.Those gains came “Terrorism has to be on the agenda,” Mr. as prices per square foot rose by 8%, to $440 per square foot, with Manhat- Eli Zabar takes Kelly said, noting also that the new practice tan, as usual, leading the pack. There, the average price of properties south another bite of UES will deal with other emerging threats as well, such as cybercrime. “It’s on One bread shop is giving rise to everyone’s mind, and we are positioned to FIFTH AVENUE BY THE NUMBERS another on the Upper East Side. give helpful advice.” There, famed baker Eli Zabar has THIS MONTH’S WHOPPING $700 million Getting into real estate versus taking a job directly in the security industry signed a 12-year lease for 650 square was a logical decision, Mr. Kelly said, because the two areas intermingle, and sale of 25,000 square feet of ground- feet at 1390 Third Ave., at East 79th floor retail space on Fifth Avenue and Cushman would give him a platform to connect with a broader swath of Street, the former home of Corrado potential clients through its existing businesses, like leasing brokerage. East 55th Street only looks crazy. The Bakery. The deal, which includes a lure of the gilded 10-block stretch of the “Big real estate companies haven’t really provided this service before,” Mr. 450-square-foot basement and 450 Kelly said. “It’s a unique service and a differentiator for us. It’s also a avenue below 59th Street for merchants square feet on the second floor, and shoppers alike suggests otherwise. startup, and I wanted that challenge.” closed near the asking price of $553 Though this is his first foray into real estate, Mr. Kelly has experience “This property has an extraordinary 100 per square foot. feet of frontage in the heart of the most working with companies to protect their assets and employees. Under his The space is expected to become watch, the NYPD invited downtown office tenants to set up desks in the city’s expensive retail street in the country,” a second location for Mr. Zabar’s Lower Manhattan Security Coordination Center, a facility that provided said Faith Hope Consolo, chairman of shop E.A.T.,which has been a long retail at Douglas Elliman. time coming. The original opened surveillance and intelligence on potential security threats. It was then that he met Edward Forst, who became Cushman’s CEO late —ADRIANNE PASQUARELLI 41 years ago four blocks away. Aaron Prince represented land- last year. At the time, Mr. Forst was at Goldman Sachs, overseeing lord Friedland Properties in-house. development of its downtown headquarters, and engaging in conversations $3,550 $8K- $20K $200M-$500M $5,000 about how to protect the neighborhood. Shortly after joining Cushman, Mr. AVERAGE ANNUAL AVERAGE ANNUAL ANNUAL SALES for PROJECTED 2016 Nick Judson and Stuart Ellman of ASKING RENTS per STORE SALES per average 25,000- average asking Judson Realty represented the ten- Forst called the city’s former top cop. square foot square foot square-foot store rent per square foot ant in negotiations. “Ed reached out to me,” Mr. Kelly said. “I think that he’s full of energy, and Sources: REBNY and analyst estimates —adrianne pasquarelli I’m really happy to be working with him.” —DANIEL GEIGER

24 | Crain’s New York Business | July 21, 2014 20140721-NEWS--0025-NAT-CCI-CN_-- 7/17/2014 4:36 PM Page 1

THE Real Capital Analytics’ Top Property Sales LIST Biggest commercial transactions in NYC in the first half of 2014, ranked by price

Sq. ft. or Address/ no. of units/ TOP FOUR property type/ Transaction price price per Interest 100% value Close submarket (in millions)1 sq. ft. or unit conveyed (in millions) date Buyer Seller SALES 5 Times Square $1,500.0 1,101,779 100% $1,500.0 6/18 David Werner AVR Realty 1 Office $1,361 Midtown west 10 Columbus Circle (Time Warner Center—office condo) $1,303.3 1,100,000 100% $1,303.3 1/16 Related Cos./GIC Time Warner 2 Office $1,185 (Government of Singapore)/ Midtown west ADIA 1 World Trade Center (World Trade Center—retail condo) $800.0 365,000 50% $1,600.0 1/5 Westfield Port Authority of New York & 3 Retail $4,384 New Jersey Downtown 388-390 Greenwich St. (Citigroup headquarters) $778.1 2,634,670 49% $1,575.0 5/15 SL Green Caisse de Depot 4 Office $598 Downtown 450 Park Ave. $545.8 321,462 100% $545.8 5/22 OMERS/Crown Acquisitions Somerset Partners/Michael Tabor 5 Office $1,698 LIST RANK 1 Midtown east ADDRESS 683-685 Fifth Ave. (Gucci Building) $460.0 115,330 100% $460.0 6/27 Thor Equities/General Gucci America Inc. 5 Times Square 6 Office $3,989 Growth Properties Midtown east PRICE PER SQ. FT. $1,361 435 10th Ave. (Hudson Spire) $438.0 151,742 100% $438.0 4/29 Tishman Speyer Sherwood Equities/Rosenthal family 7 Development site $2,886 Midtown west 61 Broadway $330.0 786,975 100% $330.0 5/29 RXR Realty Broad Street Development/ 8 Office $419 Heyman Properties Downtown 530-536 Broadway $326.0 196,000 100% $326.0 3/19 Jeff Sutton/SL Green Thor Equities/Premier Equities 9 Office $1,663 Midtown south 226 W. 52nd St. (Novotel New York Times Square) $273.6 480 100% $273.6 6/12 City Developments Apollo Global Real Estate/ 10 Hotel $570,000 Chartres Lodging Group Midtown west 110 William St. $261.1 857,776 100% $261.1 5/2 Savanna/KBS Strategic Swig Burris Equities/ 11 Office $304 Opportunity REIT Silverpeak Real Estate Partners Downtown LIST RANK 2 555 Broadway $255.0 216,000 100% $255.0 2/28 Scholastic ISE America Inc. 12 Office $1,181 ADDRESS Midtown south 10 Columbus Circle 144 W. 34th St. (Old Navy flagship store) $253.0 77,760 100% $253.0 4/23 Starwood Capital Group/ KLM Construction PRICE PER SQ. FT. 13 Retail $3,254 Crown Acquisitions $1,185 Midtown west 111 E. 48th St. (InterContinental Barclay) $240.0 686 80% $300.0 3/25 Qatar Investment Authority InterContinental Hotels Group 14 Hotel $437,318 Midtown east 200 E. 62nd St. (The Wellington) $240.0 120 100% $240.0 4/2 O’Connor Capital Partners GID/CalPERS 14 Apartment $2,000,000 Upper East Side 1 Park Ave. $220.1 957,000 39% $560.0 6/26 CPP Investment Board Vornado Realty Trust 16 Office $585 Midtown east 150 Lafayette St. (Mondrian Soho) $205.0 270 100% $205.0 6/23 Sapir Organization Deutsche Bank 17 Hotel $759,259 Downtown 479 Clermont Ave. $198.8 685,000 100% $198.8 2/28 American Landmark Starwood Capital Group/ 18 Office $290 Properties Inc./RXR Realty GFI Capital Resources LIST RANK 3 Brooklyn ADDRESS 1370 Broadway $186.0 280,000 100% $186.0 4/22 Invesco Real Estate/ Normandy Real Estate Partners 1 World Trade Center 19 Office $664 Florida State Board of Midtown west Administration PRICE PER SQ. FT. 119 W. 40th St. $165.7 342,650 100% $165.7 6/3 Blackstone George Comfort & Sons/ $4,384 20 Office $484 Leon Charney Midtown west 160 Water St. $165.0 481,858 100% $165.0 4/30 Emmes & Co. Oestreicher Properties 21 Office $342 Downtown 521-541 W. 25th St. $160.0 164,677 100% $160.0 6/9 L&L Holding/Prudential Related Cos. 22 Office $972 Real Estate Investors Midtown west 55 Broadway (1 Exchange Place) $157.0 358,637 100% $157.0 4/1 Harbor Group International/ Broad Street Development/ 23 Office $438 Image Capital Crow Holdings Downtown 330 Hudson St. $150.3 466,000 49% $304.8 6/26 Caisse de Depot/Callahan Beacon Capital Partners 24 Office $654 Capital Partners Downtown 330 E. 38th St. (Corinthian—bulk condo) $147.0 144 100% $147.0 5/15 Gaia Real Estate Holdings Spitzer Enterprises LIST RANK 4 25 Apartment $1,020,833 ADDRESS Midtown east 388-390 Greenwich St. 1-Partial-interest transactions included at the prorated share of the 100% property value. In the event of a tie, properties are ranked in order of 100% value. Real Capital Analytics Inc. is an independent research firm focused exclusively on capital investment markets for commercial real estate. RCA offers a comprehensive data service that contains transactional information for property in New York City and around the world. The firm also publishes a series of “Capital Trends” reports that PRICE PER SQ. FT. aggregate sales volume and pricing trend data for the real estate industry. Visit www.rcanalytics.com. $598

July 21, 2014 | Crain’s New York Business | 25 20140721-NEWS--0026-NAT-CCI-CN_-- 7/18/2014 7:30 PM Page 1

been slapped down by the governor, recipient of political cash from taxi Taxis in the fare fight of their life the attorney general and the TLC,all interests. He has been a staunch which claim Lyft would be violating critic of the “Taxi of Tomorrow”and rules requiring drivers to be insured outer-borough green cabs, innova- Continued from Page 1 ing for as much as $1.3 million each. ple owe him favors.” and licensed with the city and associ- tions backed by Mr. Bloomberg— The taxi industry has become That’s because yellow cabs remain a It is unclear how much Uber is ated with a base station. who once told a medallion kingpin David, and Uber and Lyft have be- lucrative business.The daily average making in New York, although the Lyft says it will work with the that he would “destroy” the yellow- come Goliaths,” said Matthew total fare box, including credit-card company claims the median income TLC to comply with the law,but the cab monopoly. Daus, a former taxi commissioner tips,for May 2014 (the latest month of its drivers in New York is more company, with a valuation of more But Mr. de Blasio’s position now and a partner at law firm Windels available) was $7.4 million, accord- than $90,000 per year.The ease with than $700 million, has used its cap- appears fluid. For example, he was Marx Lane & Mittendorf. ing to the Taxi and Limousine which Uber has rattled the market ital to hire a gamut of lobbyists and reluctant to issue an additional Yellow-cab owners initially dis- Commission, which translates to a public-relations folk to win a cam- 6,000 licenses for green taxis,but ac- missed Uber as primarily a concern total of about $229 million a month. paign for public approval. quiesced after the program was for the for-hire vehicle industry: Mr. Murstein and others—such ‘The government “It’s difficult,” said the compa- shown to be successful with riders. black cars, limos and livery cabs as Gene Freidman, who owns about ny’s president, John Zimmer. He still sounds dubious about the whose drivers flocked to Uber.It has 800 cabs and heads the Greater New has an “There’s no clear path for a startup mandate that fleet operators use only promised more pay for less work, York Taxi Association, and Ron to come into a city and do some- Nissan’s Taxi of Tomorrow,despite a thanks to surge pricing, spiking Sherman, who owns about 200 cabs obligation thing different. I wish there was.” recent court ruling in favor of the fares during high demand. and heads the Metropolitan Taxicab TLC Chairwoman Meera Joshi manufacturer. Nissan has a 10-year, But in early July,Uber said it would Board of Trade—are among a hand- to protect us’ acknowledges that most of the strife $1 billion contract to make it the slash fares 20%, making its rides ful of medallion owners known by in- arises from regulations written be- city’s exclusive taxicab, but the may- cheaper than those of yellow taxis. siders as the “cabbie cartel.”They plan fore the advent of smartphones. or might revisit that agreement. to protect their share of the market. “We’re weighing different Uber’s impact “We pay the government $1.2 More disruption coming ideas,” Ms. Joshi said. And there’s some proof that million for a medallion,” Mr. Freid- exposes some of the taxi industry’s “Rulemaking is a process,” she Supporters of Uber doubt the Uber’s impact is taking a toll. man said. “The government has an weaknesses, such as its lack of or- said.“It doesn’t work as quickly as an company would have been able to Medallion Financial, the only pub- obligation to protect us.” ganization and aversion to technol- app.” launch in New York under Mr. de licly traded company that owns a Uber, with its $17 billion valua- ogy, supporters say. Ms.Joshi,who worked under Mr. Blasio’s administration. But now large number of taxi medallions,has tion and financial backing from But Uber is contending with its Bloomberg as the agency’s general that it has a toehold in the largest cab seen its stock price drop since Uber Goldman Sachs, Google and Jeff own complications, such as discon- counsel, said she is still grappling market in the country, it doesn’t in- crashed the New York market about Bezos, is ready for battle. It hired tent among some drivers about fare with how to respond to the influx of tend to squander the opportunity. 18 months ago. Medallion Finan- former operatives of Mayor reductions and increased commis- innovation. She has personally sam- Mr. Kalanick says he is interested in cial’s share price is off about a third Michael Bloomberg, such as sions. One Uber driver, Ramzi pled some of the apps—Uber specif- disrupting other established indus- from its record high in November, Bradley Tusk, who ran the former Rayan, recently organized a small ically—and when she does,she rides tries, such as logistics and deliveries. and in the past year, the company’s mayor’s 2009 campaign, and Stu protest outside the company’s Long incognito so she can observe driver The mayor, though, remains stock is down 13.73%. Loeser, Mr. Bloomberg’s former Island City, Queens, office. behavior. She stressed that none of skeptical.“I think there’s more work “Our stock is down a lot, purely press secretary.It reportedly tried to “No one is taking care of the the upstarts can expect to circum- that will be done by the TLC in the because of the Uber hype,” said An- woo former Deputy Mayor Howard drivers,” Mr. Rayan said in a video vent regulations. months ahead,” he said, “trying to drew Murstein,president of Medal- Wolfson to act as the company’s posted on his Facebook page. “The rules are what the rules make sense of how to approach the lion Financial. “But our earnings global liaison. (Mr. Wolfson was In mid-July, the livery-cab in- are,” she said. “And they need to Uber issue in a way that’s fair to all last quarter were the highest in the said to have turned down the offer.) dustry filed a series of complaints show to us that they are complying concerned.” Ⅲ history of the company.” “We’re in a political campaign, with the TLC, the New York state with each and every rule.” The value of medallions—the and the candidate is Uber and the attorney general and the Federal Ms. Joshi said the TLC would CRAIN’S EVENT: Meet and hear the top city-issued permit that drivers must opponent is an asshole named taxi,” Trade Commission alleging a slew step up enforcement against illegal experts at “The Business of Taxis: Innovat- rent or own to drive a cab in New Uber CEO Travis Kalanick told a of violations by Uber. cabs. The agency also recently sub- ing and Industry” on Wednesday, July 23, York—remains sky-high, too, sell- tech audience in May.“Nobody likes Of the other taxi apps, Lyft could mitted an RFP for a new tow yard to from 8:30 a.m. to 10 a.m., at John Jay him, he’s not a nice character, but expand its capacity to impound of- College of Criminal Justice. wreak the most havoc—if only it were Register for tickets ($80 per seat) at LISTEN to a discussion at he’s so woven into the political ma- legal here. The pink-mustachioed fending vehicles. CrainsNewYork.com/podcasts www.crainsnewyork.com/events-bizoftaxis. chinery and fabric that a lot of peo- ride-sharing company has already Her boss,Mr.de Blasio,was a top

What it is What’s at stake Leaders Backers Lobbyists

UBER App that lets you hail and pay for a black Valued at $17 billion, the company Travis Kalanick, CEO, Google Ventures, Menlo Hill Gosdeck & car or livery, as well as hail a yellow or wants to corner transportation and co-founder Ventures, BlackRock, Jeff McGraw, Bradley Tusk, green cab. In New York, Uber exists as a car logistics in cities, with New York its Bezos, Goldman Sachs Stu Loeser service. About 7,000 drivers can be pinged largest market. with the app.

LYFT App that allows peer-to-peer ride sharing. The startup, valued at more than $700 John Zimmer, Coatue Management, James F. Capalino & Payments are referred to as donations. million, wants ordinary New Yorkers to president, co-founder Mayfield Fund, Founders Associates, Though illegal in New York, the company be able to give anyone who uses their Fund, Andreessen Horowitz, BerlinRosen has geared up for a fight to change the app a ride. Alibaba, Third Point rules.

YELLOW TAXIS 13,000-plus cabs and more than 52,000 With the number of medallions capped, Gene Freidman, Medallions, which fetch more Greenberg Traurig, drivers who operate them. Metered fare is owners have long been resistant to Ron Sherman own than $1.2 million and rising, Connelly McLaughlin based on mileage and time traveled. change in the industry, which rakes in hundreds of medallions are often financed by yellow- & Woloz, Bolton St. about $229 million in fares each month. between them. taxi lenders. Johns

GREEN OUTER-BOROUGH CABS These outer-borough cabs number 6,000, Legalized in 2013, the cabs are tapping Cira Angeles, Borough taxi licenses cost Mirram Group but will grow to 18,000 in the coming years. into an underserved street-hail market in spokeswoman, Jose $1,500 but are tradable. Metered fare like yellow cabs. the outer boroughs. Between August Altamirano, CEO, of Their value has grown quickly 2013 and June 2014, green cabs Livery Base Owners to upward of $10,000. generated about $88 million in fares. Association BLACK CARS/LUXURY LIMOUSINES Higher-end cars used by hotels, corporations Hemorrhaging business to Uber, Ira Goldstein, COO of the Base licenses are required to Pitta Bishop Del and individuals looking for a smoother ride. which has lured away 7,000 drivers Black Car Assistance dispatch black cars often Giorno, Meara Avella with promises of bigger paydays from Corp. owned by drivers. Shares in Dickinson surge pricing the companies that own them are tradable.

LIVERIES Neighborhood car services reserved by Dial 7, Carmel, Eastern and Arecibo are Carolyn Castro, executive Base licenses are required to State & calling a dispatcher. There are about among the companies that are fixtures for director of the Livery dispatch cars, which are often Broadway Inc. 62,000 drivers, 27,000 cars and 500 outer-borough riders. Their business is Roundtable; Avik owned by drivers. The right to bases. under threat from Uber and green cabs. Kabessa, CEO of Carmel dispatch cars fetches between Car and Limousine $15,000 and $50,000. buck ennis; getty images

26 | Crain’s New York Business | July 21, 2014 20140721-NEWS--0027-NAT-CCI-CN_-- 7/18/2014 6:03 PM Page 1

goals, Mr. Chandler may need to rewrite the code to permit new Filling the job nobody wanted kinds of housing, such as micro- units, that the Bloomberg adminis- Continued from Page 1 struction projects will get underway tougher than ever,” said Ms. Lan- tration experimented with. former top executive at a big engi- this year,a pipeline expected to grow caster,a former DOB head who now “The new commissioner is going neering firm; Susan Hinkson, a to a record-shattering $37 billion in runs her own consulting practice to have to take a hard look at the commissioner at the city’s Board of 2015. For the DOB, that means an and teaches at the NYU Schack In- building code and revise it to allow Standards and Appeals; Aine avalanche of permits to process stitute of Real Estate. “It’s magni- for smaller housing units,” said Brazil, an executive at engineering while making sure all those new fied in this residential market be- Frank Sciame, a construction exec- company Thornton Tomasetti; and construction sites are safe. Both cause now everything is worth so utive who was approached by the Patricia Lancaster, a former build- tasks will have to get done without a much.” Bloomberg administration in 2008 ings commissioner in the hitch in order to keep one of the And on top of everything else, to head the department but turned Bloomberg administration. city’s biggest economic drivers on Mr. Chandler will have to do more the job down. “The microhousing track. with fewer resources. Ms. Lancaster was a great effort, but I think it Striking a balance

A rising crop of slender, noted that the DOB has about getty images should go further.” “You have to be fair, you have to thousand-foot-plus apartment tow- 1,000 staffers, nearly 30% less than MAN WITH A MISSION: Buildings One of the key assets that Mr. be flexible, you have to have nerves ers, taller and thinner than anything it had when she was in office from Commissioner Rick Chandler has much to do. Chandler brings to his new job is a of steel and be able to deal with the 2002 to 2008—although some of deep knowledge of the issues and in- pressures of development, which that reduction owes to a switchover stitutions he will be working with. are tremendous,” said Robert Li- ‘You have to be to a labor-saving digital system for try’s top sheriff, but also a visionary For the past six years, he has been an Mandri, who, as is customary, issuing permits. who will play a key role in the ad- assistant vice president for facilities stepped down as buildings commis- fair, and you By industry standards, he won’t ministration’s signature effort to at Hunter College. sioner when the new administra- be well compensated. He will have create 80,000 new units of afford- Early in his career, he spent 15 tion took office.“It can be a very re- have to have to take on the job’s monumental re- able housing during the next years at the Department of Build- warding job, but you have to find sponsibilities for $205,000 a year,far decade. ings, where he rose to the level of the right person, and that’s incredi- nerves of steel’ less than what he would expect to borough commissioner of Queens, bly difficult.” earn in a top position in the private Drilling down on building code Brooklyn and the Bronx and a To begin with, Mr. Chandler sector. “There are certain aspects of the deputy commissioner of Manhat- will have to strike the right balance “This is not a job done by people building code that could warrant re- tan, before he left in 1995. Mr. between the department’s often who want to make a ton of money,” view and that perhaps could be Chandler then served as an execu- opposing objectives of policing the ever built in the city, will also pose Mr. LiMandri said. “You have to streamlined or simplified to save tive at the city’s Department of industry while doing all it can to technical and safety issues for the find the right person who’s motivat- money and make affordable hous- Homeless Services beginning in avoid strangling those firms in red DOB. The fact that units in those ed by doing the right thing for the ing more financially feasible to 2002 before leaving to join Hunter tape. spires will sell for tens of millions of city.” build,” said Denise Richardson, College in 2008. The New York Building Con- dollars and be occupied by some of This time around, City Hall has president of the General Contrac- Mr. Chandler did not respond to gress, whose members include ma- the world’s richest people will fur- also set especially high expectations tors Association. “The buildings a request for comment. Ⅲ jor engineering and construction ther increase the stakes riding on the for the position. The mayor’s office commissioner will be an important companies as well as developers, es- agency’s performance. envisions the DOB commissioner part of that effort.” LISTEN to a discussion at timates that $33.4 billion in con- “The balancing act is probably not only as the construction indus- To hit the bold affordability CrainsNewYork.com/podcasts

eliminate” fiscal uncertainty, the which was partially funded by the Union donation raises questions firm also stated the deal’s cost to the UFT, did donate $175,000 in left- city was “large” and might increase over money to Campaign for One future budget deficits, and that the New York in January.) Continued from Page 1 mand of his political message as he deal with Mr. de Blasio—in which health care savings might not come Before AFT’s $350,000 dona- utive director of Citizens Union. approaches his 100th day in office.” teachers will receive annual raises to pass. Out-year city deficits were tion on April 9, Campaign for One “And these groups doing business Informed of the $350,000 in- over six years of 1% for the first three later revised upward by $5 billion New York was running out of mon- with the city—while they make and-out, Mr. Dadey told Crain’s: years, then 1.5%, 2.5% and 3%—set over three years,which Moody’s and ey: After an initial $500,000 ad these donations—is [a situation] “With those circumstances, that a bargaining pattern for the scores of bond raters at Barclays frowned spree on April 4, it had only just riddled with conflicts.” just points to the nonprofit really municipal unions that were also upon. $100,000 left. The $350,000 from On April 9—the same day the being nothing more than a pass- without contracts. In a statement, AFT President the AFT allowed the group to spend AFT donated its $350,000—Mr.de through.” Mr.de Blasio was in a strong bar- Randi Weingarten, a former UFT $450,000 more on TV ads, bringing Blasio’s proxy organization spent Campaign for One New York gaining position: The UFT had president, said of the donation to the total tab to $950,000—close to exactly $350,000 to continue airing was formed to advance the mayor’s gone four and a half years without a Campaign for One New York:“The the $1 million that Mr.de Blasio had campaign-style television ads tout- signature social reform: universal contract under the Bloomberg ad- AFT has always been out there for reportedly targeted. ing the mayor, amid lagging early prekindergarten.The organization, ministration. But critics of the new early-childhood education. This A spokesman for Campaign for poll numbers,according to lobbying an issues-oriented nonprofit entity pact, such as pro-charter-school contribution was fulfilling a long- One New York declined to comment. disclosures. known as a 501(c)(4), was founded group StudentsFirstNY,say that the standing commitment, as universal An AFT spokeswoman said the The timing of both transactions by Mr. de Blasio’s campaign man- teachers’ raises did not come with pre-K is a central goal of our initia- donation was not earmarked for Mr. raises further questions about ager, and the pre-K campaign it needed work-rule concessions that tive to reclaim the promise.I’m hon- de Blasio’s ad blitz. “It was for gen- whether Mr. de Blasio or his allies funded was run by consulting firms could improve the quality of class- ored to have been part of it.” eral support,” she said. “We com- reached out to the 1.5 million- that worked on the mayor’s race for room instruction, and that it actual- It’s not clear, however, whether mitted to the contribution early on member union and urged it to fund City Hall. ly reduces instructional time for the reason for the donation was the because we think Mayor de Blasio’s the politically helpful ads as the children. AFT’s “longstanding commit- team is on the right track with mak- teacher contract talks were occurring. Investigation sought The charter-school group in ment” or Mr. de Blasio’s politically ing sure all kids have access to high- The New York Times reported a Less than a month after the mid-July called for a city Conflicts helpful commercials. At the time quality public education.” day before the donation was made $350,000 donation, the teachers’ of Interest Board investigation after the ads went on air, the mayor had Mr. de Blasio’s lobbying arm also that Mr. de Blasio was “calling on union and the city struck a nine- Crain’s first reported the $350,000 suffered through a series of public- took heavy contributions from oth- the key players from his successful year, $9 billion agreement that in- donation online. A New York Post relations missteps that drew both er supporters, including unions, mayoral campaign”to help him with cluded raises and retroactive pay, editorial has since called on the tabloid and television scorn. taxi-industry executives and oppo- a $1 million television ad campaign while also promising future health Campaign for One New York to re- nents of the Central Park horse- that would help him “regain com- care savings for the city. The UFT turn the money. Expanding efforts carriage trade, which the mayor has A City Hall spokesman said the The majority of the Campaign promised to ban. CORRECTIONS AFT’s hefty donation had no im- for One New York’s $1.67 million in Other elected officials have set pact on the contract between the spending has gone to TV commer- up similar charities in the past, but There are 21 industrial business zones in the city. That number was misstated in the July 7 “Industrial firms push de Blasio.” mayor and the teachers’ union. cials heralding the pre-K push. The one good-government group said “In a word, zero,” the spokesman group is now expanding its efforts Mr. de Blasio’s is especially prob- Two photo credits in the July 7 Out and About were incorrect. The Robert Cray photo was taken by J. Katz. The New York Philharmonic photo was taken by Chris Lee. said. “This was a historic contract beyond pre-K to other parts of the lematic because the city’s publicly praised across the board by bond- mayor’s agenda. funded campaign-finance system is MOST-CONNECTED NEW YORKERS: CORRECTIONS rating agencies as a fiscally respon- On March 31, the state Legisla- meant to diminish the influence of The photos that identified the following executives in the June 23 Most-Connected New Yorkers list sible agreement that eliminated one ture approved funding for Mr. de deep-pocketed special interests. were incorrect. The correct photos are (from left) William E. Ford (No. 79), CEO of General Atlantic; of the biggest fiscal uncertainties Blasio’s universal pre-K program. “It’s the entire apparatus which Helene L. Kaplan (No. 93), of counsel at Skadden Arps Slate Meagher & Flom; and John K. Castle out there.The factors that guided us Neither the UFT nor the AFT pro- raises questions,”said Susan Lerner, (No. 170), CEO of Castle Harlan Inc. to an outcome were doing right by vided any direct funding for the executive director of Common Mr. Ford also is the chairman of General Atlantic’s taxpayers and by our students—and mayor’s lobbying efforts while they Cause New York. “It gives the ap- executive committee. Mary Ann Tighe (No. 163), CEO of the New York tristate region for CBRE, is not a council we succeeded on both counts.” played out in Albany. (A political pearance that individuals and member of the New York Academy of Sciences. These facts While ratings agency Moody’s action committee that had support- groups that want to gain access can Ⅲ bloomberg news; brian fountain were misstated. did say that the contract “could ed Mr. de Blasio’s 2013 election, do so by making donations.”

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Minority tech entrepreneurs BRIDGING THE DIGITAL DIVIDE FUNDS TARGETING MINORITIES Continued from Page 3 with U.S. manufacturers. Serial en- Torsh,a video teacher-training plat- Catalyst Fund, New York, invests in money, time and tears to build their trepreneur Lisa Morales-Hellebo form that has the state of Massachu- early-stage technology startups led by companies. launched New York Fashion Tech setts as a client, summed up his ap- minority entrepreneurs. But unlike their white or Asian Lab, an accelerator that fosters col- proach to race in the startup world Impact America Fund, New York, peers, they’ve done it without con- laboration between major retailers this way: “At the end of the day, it’s formerly Jalia Ventures, is an early- nections to role models like them- and startups. a challenge like any other.” Mr. stage equity fund at the Pace selves or significant support from Sulaiman Sanni’s crowdfunding Williams—a Jamaican immigrant, the investment community, whose site, WeDidIt, helps schools and veteran of AOL and two-time en- University Helene and Grant Wilson members often inhabit social, aca- nonprofits raise money on the Web trepreneur—saw the gap between Center for Social Entrepreneurship. It demic and professional spheres dif- and via a mobile app. Amnesty In- new Common Core requirements invests in companies that create jobs ferent from those of black and Lati- ternational is one of its clients. and what teachers learn in college and improve the well-being of no entrepreneurs,according to these One investor who backs minori- and on the job. underserved communities. entrepreneurs and the few funds ty entrepreneurs attributes the lack Minority Angel Investor Network, dedicated to supporting them. of interest in them to group-think in Crashing the party Philadelphia, represents investors “Typical VCs explore their own venture capital, a risk-averse busi- Like Mr. Williams, Mr. Garcia- who target high-growth, minority- networks, people who have returned ness in which the same types of in- Amaya’s sterling education and owned or minority-led companies. capital before, schools they have in dustries, geographies and ventures work experience—he’s a New York Venture Capital Access Program, common,” said William Crowder, reap funding, even though investors University M.B.A. and Innovation New York, a venture between Harvard head of Comcast Ventures’ minori- could get better returns outside Fellow, and an alum of the Business School Alumni Angels of ty-focused Catalyst Fund and a part- crowded sectors. Bloomberg administration—has Greater New York and the National ner at the DreamIt Ventures acceler- “A lot of my peers are not suffi- opened doors. As chair of the tech- Association of Investment Companies, ator. “If those are the happy hunting ciently open to companies that ad- nology committee of the New provides access to capital for women WILLIAM CROWDER runs Comcast grounds, then where do they inter- dress the changing American land- America Alliance, an organization and diverse entrepreneurs. Ventures’ minority-focused Catalyst Fund. sect with the social, academic and scape,” said David Teten, a partner of prominent Latino business lead- business interests of an African- in ff Venture Capital and chairman ers,he’s trying to create mentors and MINORITY-LED VENTURE FUNDS Francisco, promotes tech entrepre- American or Latino entrepreneur? of Harvard Business School Alum- angel investors within his commu- 645 Ventures, New York neurship in the U.S. Latino commu- They don’t intersect that often.” ni Angels of Greater New York, nity. In June, Mr. Garcia-Amaya Base Ventures, Berkeley Hills, nity by providing a network of entre- The 2010 CB Insights analysis whose Venture Capital Access Pro- brought together Latino business preneurs, investors and mentors. found that a mere 1% of seed and Se- gram invests in women and minor- leaders and tech entrepreneurs at Calif. ries A funding nationally went to ity entrepreneurs in partnership BET Networks’ offices in Times Bronze Investments, Manos Accelerator, San Jose, black founders. In New York City, with the National Association of In- Square. San Francisco Calif., provides mentorship, that number was less than 1%. vestment Companies. Investors are starting to take no- EchoVC Partners, San Francisco resources and access to early-stage In the first six months of 2013, These are businesses like East tice. The Harvard B-school alums’ Bay Area capital for Latino entrepreneurs. just 8.5% of entrepreneurs pitching Harlem-based Qlovi, a digital plat- Venture Capital Access Program, H360 Capital, Charlotte, N.C. New Me Accelerator, San to angel investors nationally were form that helps kids in urban com- which holds demo days every Jalia Ventures, New York Francisco, targets businesses led by minorities,according to the Univer- munities meet Common Core stan- month, has so far staked three start- Syncom Venture Partners, founders in underrepresented sity of New Hampshire’s Center for dards by mastering language and ups to seed money. Comcast Ven- Bethesda, Md. populations. Venture Research. About 15% of reading skills.CEO and co-founder tures’ $20 million Catalyst Fund for Valencia Ventures, Oakland, Calif. RESOURCES them landed money, versus 22% of Harlyn Pacheco sees opportunity in minority entrepreneurs is backing all others. serving underserved communities. seven early-stage startups around ACCELERATORS America21 Project, Medford, Ore. “It’s a growth market and an ar- the country,including Maker’s Row DreamIt Access, New York and Black Founders, San Francisco Centered on fashion bitrage opportunity for whoever and Viridis in New York City. Sim- Philadelphia, helps launch Code 2040, San Francisco Black and Latino founders in identifies it,” he said. “The needs of ilarly, Jalia Ventures made nine in- minority-led startups in those Digital Undivided, New York New York have a particularly strong diverse communities are unmet.” vestments in social-impact ventures cities. DiversiTech, Washington, D.C. presence in the fashion world. Ella Likewise for Edrizio De La started by minority founders. And Latino Startup Alliance, San —JUDITH MESSINA Gorgla founded I-ELLA.com, a Cruz.He co-founded Regalii,a cell- Nnamdi Okike, a former principal platform where people can sell or phone app that immigrants can use with Insight Venture Partners, is lend apparel and accessories. Tanya to send gift cards to relatives over- raising money for a new fund, 645 Menendez and William Burnett seas.The cards can pay for groceries, Ventures. present and accounted for,” said ognize the lack of diverse people, started Maker’s Row to connect de- medicine and utilities. “[Entrepreneurs] have to crash Catalyst’s Mr. Crowder. “But the and I want to do something about signers of apparel and other goods Courtney Williams, founder of the party and make sure they are onus is also on investors to say,‘I rec- it.’ ” Ⅲ

of an opera fan,”said New Jersey res- Metropolitan Opera faces fiscal, labor woes ident Marie D’Innocenzio, who at- tends about two live performances a year. Continued from Page 3 eventually soared to $28 million were treated with fire retardant, but ence but simply shift them to a ven- Union representatives counter (where it has hovered the past three the chemicals bothered singers’ ue with less-expensive tickets. Taking risks that they want to see revenue- years), and performances have won voices. The costumes had to be “I think HD hurts the Met in Mr. Gelb has taken more risks to growing proposals, including inno- Emmy and Peabody awards. cleaned, and the plan was scrapped. New York because it takes audiences grow the Met’s audience.He has in- vations such as HD,that could serve The Met said accommodations out of the opera and into the movie creased the number of new produc- as an alternative to making cuts to Production costs made for HD performances, which theater,” said Alan Gordon, execu- tions to an average of seven a season, achieve profitability. They say Mr. But HD’s growth has come as la- can include such elements as using tive director of the American Guild up from five during the reign of his Gelb’s mismanagement and poor bor costs have risen. Unions say that more lights, came to $404,179 last of Musical Artists. predecessor Joseph Volpe. Donors artistic vision caused last year’s $2.8 HD performances lead to higher year, or 0.1% of the company’s an- The Met says the HD broadcasts have been willing to bankroll Mr. million deficit. costs. In one recent broadcast, for nual budget. generate excitement. Opera-house Gelb’s lavish new productions. “We keep asking for a plan for example, real fire was going to be Some union officials say the Met attendance of performances that are They haven’t always been suc- the future, but we haven’t received used in a scene because fake flames should at least stop movie-theater broadcast outpaces those that are not cessful. A version of Wagner’s Ring any answers,” said Joseph Hartnett, wouldn’t pass muster when trans- performances in the city, claiming by about 13%, according to the Met. Cycle was a widely publicized bomb. an assistant director in the stagecraft mitted in high definition.Costumes they don’t grow the company’s audi- “HD broadcasts made me more Mr. Gelb defended his record in department of the International Al- a recent interview, saying if the liance of Theatrical Stage Employ- opera doesn’t regularly offer new ees. “[Mr.] Gelb thinks that cutting MEET THE MET FALLING FLAT: The performances,the audience will stay labor is the only answer.” Met, which has away. “Sometimes things work; Mr.Gelb joined the Met in 2006, featured American sometimes they don’t,”he said.“You and quickly put his imprint on the 7 $89.3 M mezzo-soprano have to try.” NUMBER ATTENDANCE660K at TOTAL BOX-OFFICE Jamie Barton, institution with the launch of HD. OF NEW the opera house in REVENUE in fiscal 2013, needs to come up The unions say they are being The Met broadcast six performanc- PRODUCTIONS fiscal 2013, a down 5.4% from fiscal with new revenue asked to pay for his artistic misfires. es into 248 theaters in eight coun- staged in fiscal decrease of 8.3% 2012 streams, critics say. “We are creating his vision,” said tries in the first season of the Met’s 2013, the same from the year Mr. Hartnett. “He’s the one who HD transmissions. The events as a year earlier earlier says, ‘Do it, I don’t care what brought in $2.4 million. Last year, it costs.’ ” Ⅲ the Met transmitted 12 performances to 1,935 theaters in 64 coun- LISTEN to a discussion at CrainsNewYork.com/podcasts tries. Revenue from broadcasts Source: Metropolitan Opera getty images

28 | Crain’s New York Business | July 21, 2014 20140721-NEWS--0029,0030-NAT-CCI-CN_-- 7/17/2014 4:40 PM Page 1

HELLUVA TOWN INSIDE Source Lunch From Stop-and-frisk, tragedy, hotelier gains the musical new perspective PAGE 30

Brooklyn’s Beat Festival has just Out and About the show for former Mayor Michael Bloomberg: an opera Bacon and beer at performance based on stop-and- the ballpark PAGE 31 frisk, the controversial policing tactic championed during his tenure. Stop and Frisk is the first act of Independence Eve, a three- TEA TIME: Rose Solis handing part opera about race relations. It out Long Island Iced Tea will be the only portion performed samples in Union Square. during the September festival. Stop and Frisk focuses on an African-American man who is trying to explain his frustration after such an incident to a white friend who doesn’t get it. “I wanted to give a voice to the black scott friedlander man and the white man,” said Daniel Neer, who wrote the libretto. Sidney Marquez Boquiren composed the music. Neither of the creators, who are white and Asian-American, respectively, have been accosted, but Mr. Neer said the subject fascinated him because “it was so much in the news.” Mr. Neer hopes the opera will encourage people to examine the tactic from different points of view. It will be performed on Sept. 13 for free at a farmer’s market in East New York and on Sept. 16 at the Brooklyn Historical Society for $20 a seat. —theresa agovino Seafood site’s big haul

Megan Grippa (pictured) worked five years for Macy’s, rising to shoe buyer. But she traded high heels for salmon filets when she launched ShopFreshSeafood.com last July. It wasn’t a totally random move. Her family owns Universal Seafood, a wholesaler at Hunts Point. She’s the fourth generation to enter the business. “The way of the future is LandLand ofof thethe freefree e-commerce,” said Ms. Grippa, 34, the eldest of five siblings, and the only one to join the fold. Food and beverage companies find that NYC in summertime A year in, the site has “a couple hundred” orders coming in each month, Ms. Grippa said. The provides the perfect laboratory for marketing new products

family has invested more than buck ennis $100,000 in the startup, which ships Universal’s fresh catch to BY ROSALYN RETKWA SAMPLERS customers around the country. “Seafood has a bad reputation,” said Ms. Grippa, who wants to t’s summer in New York City, and for some local food and beverage companies, that dispel the image of the shady means it’s prime time for offering free samples to prospective consumers—often via eye- fishmonger. catching, brightly branded trucks, cars and other vehicles.To taste their products is to fall To ensure the best filets, she 6,500 packs the boxes herself. She in love with them, the companies believe, and, therefore, they also believe that giving NUMBER of snack bars doesn’t push wild over farmed, but away free samples in sometimes abundant quantities is the most effective means of Kind gives out at customers get what they pay for. Celebrate Brooklyn! “You have to marketing. ¶ If you’re going to the Celebrate Brooklyn! concerts this summer at the summer shows trust the Prospect Park Bandshell, you might snag a complimentary natural-snack bar from person who is Kind Snacks, a 10-year-old company headquartered in Manhattan. It has a team at serving you,” she said. “It’s about a third of the season’s 24 free shows, armed with about 6,500 bars for each event, said James my name, my Russo, the company’s New York metro field-marketing manager. ¶ Kind also has been a face, my family 400 Iprominent sponsor of biking events. For instance, at May’s 42-mile Five Boro Bike Tour, NUMBER of free bottles on the line. We are on the up- organized by the nonprofit Bike New York, Kind gave away more than 50,000 bars in a single day of Long Island Iced Tea and-up.” distributed at Union —valerie at rest areas.Throughout the year, it donates an additional 45,000 bars at events sponsored by Square during a recent block Transportation Alternatives, a group that lobbies for safer streets for See MARKETERS on Page 30 lunchtime heidi raker heidi raker

July 21, 2014 | Crain’s New York Business | 29 20140721-NEWS--0029,0030-NAT-CCI-CN_-- 7/17/2014 4:41 PM Page 2

SOURCE LUNCH: Marketers’ summer freebies EDWARD SCHEETZ by Lisa Fickenscher Continued from Page 29 where from 300 to 600 full bottles pedestrians and cyclists while pro- every time one of its vehicles hits a moting public transit. location. Mr. Thomas says that in And although it doesn’t promote the space of a year, he’s become a its products at the New York City great fan of external marketing via How tragedy gave Marathon—“we’re looking for cars and trucks. recreational athletes rather than per- “In my opinion, one-on-one is formance or endurance athletes,” the most effective way to grow a hotelier new focus Mr. Russo said—Kind gave away brand,”he said.“When we do exter- about 8,000 bars to those who fin- nal marketing outside a supermar- ished a 5K run/walk sponsored by ket, typically we sell out inside that even years ago, hotel execu- group of investors, Wheelock Street the American Heart Association in supermarket that day.” He noted tive Edward Scheetz was at Capital [an investment firm in June. that during the four weeks after an the center of a tragedy that Greenwich, Conn.], wealthy indi- Kind also tries to reach people at event,sales at that location will typ- derailed his career and com- viduals and me. I have a fair amount the start of their workday by park- ically increase by about 20%. The pelled him to re-evaluate his of equity in the company. I wanted ing one of its Jeep Wranglers out- company has also noticed an in- Slife. His 23-year-old girlfriend died the same kind of structure that we side Penn Station or at stops on the crease in traffic to its social-media of a drug overdose in his condomini- had at Morgans when I was Ian LIRR during the morning rush. sites following a sampling. “On top um in the Las Vegas Hard Rock Ho- Schrager’s partner, where the in- “That’s where the messaging comes of increasing sales, people also be- tel & Casino. Mr. Scheetz was the vestors own the assets and the man- in,” Mr. Russo said. “It’s not just come connected to the brand,” he chief executive of Morgans Hotel agement company. ‘Here’s a free Kind bar’; it’s ‘Here’s a said. Group, which owned the Las Vegas healthy start to your day.’ ” property—and he resigned several Are you still in contact with Mr. Schrager? The company’s marketing re- Complicated permits weeks later from the company he had Oh, yes. We are good friends. We search shows that 85% of the people What mobile marketers have to taken public. talk about doing things together all who’ve tried a Kind bar would rec- look out for, however, is the city’s In 2011, Mr. Scheetz partnered the time. I’m a small partner in his buck ennis ommend it. “The best way to turn KEEPING COOL: Union Square parkgoers complex system of permits. “If [a with real estate mogul Joseph Public hotel in Chicago. people into loyal consumers is by of- grab free bottles of Long Island Iced Tea. company is] giving away or selling Chetrit to form a new hotel compa- fering them a sample; there are so food or beverages,they need a valid ny.After two years,the partners split. What’s happening with the Hotel many competitive bars on the shelf,” Department of Health permit,” a Mr. Scheetz, 49, bought five of their Chelsea? Mr. Russo said. representative, such as Rose Solis, representative of the mayor’s office properties, including the famed Ho- People are still living in it, which And it seems to be working. Pri- from Long Island Iced Tea, head- confirmed in an email. New York tel Chelsea, which has been closed makes it a complicated project for us. vately held Kind doesn’t release its quartered in Long Beach. Union City also has a Street Activity Per- since 2011 for a massive renovation. We are building the hotel around revenue figures, a company spokes- Square is one of the beverage commit Office, or SAPO, and for “each them. We could never complete the woman said, nor would she say how pany’s favorite city locations for giv- location”a vehicle “needs a separate How would you describe the period in project unless we had the tenants on many bars it gives away annually. ing out samples because it’s “such a SAPO permit,” the representative your life after you left Morgans? our side, which meant providing However,the firm hired 65 full- and big area with a vast group of people,” said. It was very traumatic, ob- them services. The build- part-time employees during the first said CEO Philip Thomas, though That’s easier said than done be- viously. It forced me to WHERE ing was dirty and had ver- quarter,bringing its total head count he said the firm’s colorful cars and cause of the cost involved, said think about things, not THEY min at times, spotty heat, to more than 300, she said, versus vans will be out “seven days a week Grant Di Mille, president of just what I wanted to do and things needed to be re- the five employees who were there at throughout the metro area.” SweeteryNYC, a midtown Man- next, but personally, my DINED paired.We reached a settle- its start in 2004. Kind bars are now On a recent sweltering hattan marketing agency that spe- family and everything MAIALINO ment with the tenants,gave sold in more than 95,000 stores na- Wednesday at lunchtime, Ms. So- cializes in branded trucks. SAPO else. If there is a good that 2 Lexington Ave. them a little bit of money tionwide, including a number of lis quickly gave out about 400 bot- permits start at $3,100 and go up comes out of something (212) 777-2410 and worked out a deal for www.maialinonyc major grocery chains. tles to passersby from the front seat from there to as much as “tens of like that,it’s that it did give .com them to move into our oth- of one of the company’s trucks. thousands,” he said. me that time to figure out er hotel for a month, the Coco van AMBIENCE: “Clever name,” said Zoila Jen- Mr. Di Mille, who co-founded what I’m going to do. Lots of natural Martha Washington,while Vita Coco,another Manhattan- nings,while her friend Yaneris Leo SweeteryNYC in 2009 after 25 light, but loud we put in new heating and based 2004 startup, specializes in took a sip and described the rasp- years in print advertising, owns How did you spend your time when crowded. air-conditioning systems. coconut water. It’s hitting the four trucks that can be wrapped in then? European flair There’s no incentive for with warm streets of New York again this sum- vinyl for different brands on differ- I did some private invest- touches, them to leave now, and mer with some of its vans. ‘The best way to ent days. He has designed and de- ing.I’m an avid cyclist,so I including wood that’s fine. When the company started its ployed trucks for a long list of ma- was in great shape. I spent beams on the vehicle sampling program in 2009 turn people into jor corporations, such as Adidas, a lot of time with my kids ceiling. You’ve been described as with a single van, its revenue was MasterCard and Lord & Taylor. and family. I wasn’t really WHAT THEY ATE: “hard-partying.” Is that true? about $8 million. Vita Coco has loyal consumers If a truck wants to park at a par- retired, but I wasn’t work- Orecchiette with It’s not true. lamb sausage, since grown into a $250 million ticular location, it needs a SAPO ing full-time, either, at broccoli rabe and business with a fleet of 17 branded is by offering a permit, or the police can make it that point. I took two and peppers Did it ever describe you? vans that will distribute “hundreds move. Some companies are willing a half years where I was Olive-oil- No. If you work in the ho- of thousands of full units”this sum- sample’ to take that chance—“if we get doing some stuff but not poached trout tel business, people think mer in a number of major markets, moved,we’ll tweet and say we’re on doing that much. with spring that about you. Certainly, including Boston, Chicago, Seat- the next corner”—while others vegetables and entertainment and rock yogurt tle, Los Angeles and Miami, said want to “save themselves the em- What brought you back into and roll, celebrities—all 2 Cokes company Communications Direc- barrassment of being moved” and the hotel business? that stuff is part of what 1 espresso tor Arthur Gallego. Giving con- berry version of the tea as “sweet will therefore buy the permit as “in- I bought Ruschmeyer’s, a goes on to build awareness sumers the same full containers but refreshing.” surance,” Mr. Di Mille said. 19-room hotel in Mon- PRICE: $63.71, of hotel brands. But I have including tip found on supermarket shelves— This Long Island iced tea isn’t The city’s parks, meanwhile, tauk, [L.I.], and in August much younger people who rather than, say, a cupful—is “criti- alcoholic, though its advertising have their own permits. If a vendor 2011 we took a 20% stake in the Ho- run those areas of the business. I live cal”because shoppers can take away plays off the association with the wants to station himself along the tel Chelsea, which Joe [Chetrit] a pretty boring life. I have a house in the packaging as a reference point knock-your-socks-off mixed drink perimeter, that’s considered “the owned. Then the portfolio grew to Pound Ridge [in Westchester,as well for future purchases, he said. as a way of grabbing the consumer’s domain of the park....They want to 14 properties. And two years later, as an apartment in SoHo],and I bike It’s also important that the vans attention in a crowded market. get their money, too,” he added. we decided to break off. I was trying four hours a day. stand out, Mr. Gallego said. Vita This version is a craft-brewed en- What about smaller companies to build a hotel company.Joe wanted Coco’s trucks “are almost a little bit trant in the natural-foods category, that will be at a location and gone in to do that, but he’s also a real estate Where did you grow up? garish—bright and happy to attract a cold tea drink blended with fresh a flash? “It doesn’t matter whether investor. It was an amicable divorce. I was born in Hawaii, but I grew up people to them,” he said. “We cer- fruit flavors and pure cane sugar; it’s 10 minutes or 10 hours—to con- in Maryland. My father was in the tainly didn’t invent guerrilla street “Mother Nature’s Top Shelf ” is the duct street activity, you’re supposed How do you finance your deals? military.After college,I went to Dal- sampling,” he said, but Vita Coco legend on its vans and cars. to have that SAPO permit,” Mr. Di The company is owned by a small las and came to New York in 1993. decided to make its vehicles hard to Long Island Iced Tea experi- Mille said. “The best analogy I can miss, with coconuts on top and mented with its first vehicle- give you is: Are you going to get blaring music. A consumer should marketing program last year, and caught driving 58 in a 50-mile DID YOU KNOW? At 32, Mr. Scheetz was be able to “identify that vehicle and found it so successful that it ex- zone? Probably not, but you could what it represents,” he added. panded its fleet to three cars and get ticketed. As with many non- a Crain’s 40 Under 40 honoree while a If you’re in the Union Square area three vans this year, Mr. Thomas criminal infractions, it’s at the dis- partner at Apollo Real Estate Investment. this summer,you might bump into a said.The company gives away any- cretion of the officer.”

30 | Crain’s New York Business | July 21, 2014 20140721-NEWS--0031-NAT-CCI-CN_-- 7/18/2014 6:02 PM Page 1

OUT AND SNAPS Financial leaders raise more than $2M to fight cancer ABOUT by Jessica Kramer and Theresa Agovino

CULTURE FIX CAREER BUILDER THURSDAY, JULY 24 WEDNESDAY, JULY 23 The community of Chelsea presents Crain’s hosts a new event in its Business Of the FIFTH ANNUAL CHELSEA ART WALK. Series, with a look at THE BUSINESS OF Galleries stay open late and offer TAXIS: INNOVATING AN INDUSTRY. Leaders exhibitions, artist talks, receptions from the taxi establishment and the city, and more from 5 p.m. to 8 p.m., free along with those from the upstart world of of charge. Participating galleries are green cabs, e-hail apps and other car located from West 16th to West 29th services, weigh in on the issues these new streets, between Ninth and 11th technologies and increasingly powerful avenues. For a list of all participating interest groups raise in the sharing galleries and locations, visit economy, as well as how to innovate a www.artwalkchelsea.com. highly regulated industry that’s often

resistant to change. The program begins at rebecca greenfield FRIDAY, JULY 25, 8:30 a.m. with a networking breakfast and lea rubin KAREN BROOKS HOPKINS and JOSEPH MELILLO at the THROUGH SATURDAY, AUGUST 23 ends at 10 a.m. at John Jay College of JOHN THIEL, KRIS KIM and DICK VITALE at the American Cancer Society’s second annual BAM Ignite Gala, benefiting BAM Education. Lincoln Center presents the 48th Criminal Justice, 524 W. 59th St. Financial Services Cares Gala. The June 24 event raised more than $2 million. The June 30 celebration raised $915,000. season of the MOSTLY MOZART festival. Individual tickets cost $80. Registration is The annual summer celebration available online at www.crainsnewyork.com/ includes events-calendar/details/4/2982213. concerts, dance, opera, THURSDAY, JULY 31 late-night BizBash and Eventbrite present ELEVATE,a recitals and conference for event-industry professionals. world The program includes a keynote speech and premieres. a choice of morning and afternoon work- The festival shops on budgeting, sponsorships, fund- takes place at raising and social media.The event includes various breakfast, a luncheon and a closing session locations at that segues into a cocktail party.The Lincoln program begins at 8:45 a.m. and ends at 5:30 Center. For jennifer taylor p.m. at the Conrad New York, 102 North more information on times, locations, End Ave.Tickets cost $325 for event prices and programs, visit organizers and are available at www.bizbash y savulich a

www.mostlymozart.org. .com/bizbash-events/elevate/2014/new-york. j DAVID A. NADLER, AILEEN HEFFERREN, JERRY BRIGHT,

FAY LAMPERT SHUTZER and BILL SHUTZER at the Prep for roger archer DON’T MISS BACON AND BEER BASH Prep Lilac Ball. The June event raised $3 million for Prep DEBORAH ROYCE, PAM SCHAFLER, LOUISE MIRRER and CHARLES ROYCE at a programming, which helps promising students of color in July 1 reception at the New-York Historical Society. The event was a special preview SATURDAY, JULY 26 New York City gain access to educational opportunities. for the opening of “Madeline in New York: The Art of Ludwig Bemelmans.” What’s more American than bacon and beer? Bacon and beer at the ballpark, of course! The BACON AND BEER CLASSIC See more of this week’s Snaps online at CrainsNewYork.com/galleries. combines all these alliterative American favorites into one blowout event. Attendees can choose between a brunch session running from noon to 3 p.m. or a dinner session from 7 p.m. to 10 p.m. The general- admission ticket price for each session is $59. The New York event is hosted at Citi Field at 123-01 Roosevelt Ave., Queens. To purchase tickets, visit www.baconandbeerclassic.com/#!nyc/c334.

OPENING FUNDRAISERS SATURDAY, JULY 26, SATURDAY, JULY 26 THROUGH SUNDAY, MARCH 1 The Watermill Center presents its summer The Museum of Modern Art benefit and auction, ONE THOUSAND NIGHTS presents THE PARIS OF TOULOUSE- AND ONE NIGHT: SLEEPLESS NIGHTS OF LAUTREC: PRINTS AND POSTERS, SHEHERAZADE, honoring art patron Shaikha featuring more than 100 examples Paula Al-Sabah. The evening includes new of the Belle Époque artist’s best- work by more than 65 artists. Cocktail tickets known work. Henri de Toulouse- cost $500; contributor tickets cost $1,000 and Lautrec’s art include a dinner. The event starts at 6 p.m. at is arranged the Watermill Center at 39 Watermill Towd thematically Road in Water Mill, L.I. For tickets, visit by subject. www.watermillcenter.org/benefit. General admission is THURSDAY, JULY 31 $25, except St. Francis Food Pantries and Shelters present on Fridays the 12th annual WOMEN OF VALOR AWARDS between 4 TEA. Macy’s hosts the event, which honors p.m. and 8 female business and community leaders. The p.m., when benefit begins at 11 a.m. with a champagne admission is free. The museum is reception and then continues with a luncheon located at 11 W. 53rd St. For more and tea from noon to 1:30 p.m. at the Waldorf information, visit www.moma.org/ Astoria, 301 Park Ave. Tickets cost $400. visit/calendar/exhibitions/1493. To RSVP,call (212) 279-6171. MARK YOUR CALENDAR… SATURDAY AND SUNDAY, AUGUST 16 AND 17 IT’S TIME TO BRUSH UP on the Charleston and break out your glad rags for the second and final weekend of the ninth annual JAZZ AGE LAWN PARTY on Governors Island. A $35 general- admission ticket includes entry, activities and music. Cocktails and food are available for sale as well. Festivities start at 11 a.m. and run until 5

p.m. For tickets, visit www.jazzagelawnparty.com. whitney browne

July 21, 2014 | Crain’s New York Business | 31 IT’S AN EXCITING TIME TO LIVE IN NEW YORK CITY

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