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Mayor's Old Pal Wins New Business As a NYC Labor, Corporate Lobbyist

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Mayor's Old Pal Wins New Business As a NYC Labor, Corporate Lobbyist EBOLA IN NY: TALLYING THE COSTS, FROM HOSPITALS TO CRAIN’S® TOURISM PAGES 3, 4 NEW YORK BUSINESS VOL. XXX, NO. 43 WWW.CRAINSNEWYORK.COM OCTOBER 27-NOVEMBER 2, 2014 PRICE: $3.00 AMAZON’S$73B 2013 REVENUE, compared with an estimated $500 million for FreshDirect VALUE$10B OF GOODS Amazon could move via its New Jersey getty images facility at full capacity, compared with about $1B for FreshDirect’s warehouse Fresh Squeezed Direct,which had largely had the market to it- ate 1,000 new jobs as part of a much-criticized Amazon’s move into BY THORNTON MCENERY self since it pioneered the business in Long Is- deal with the Bloomberg administration for land City, Queens, in 2002. The company, $127 million in city and state subsidies. grocery-delivery biz E-commerce behemoth Amazon moved into known for its green-and-orange trucks,said it Those jobs might be difficult to create if direct competition with New York’s home- is “very profitable,” with hundreds of thou- Amazon replicates FreshDirect’s business makes FreshDirect’s grown grocery-delivery business, Fresh- sands of New York customers and an estimat- model in its biggest market. FreshDirect is al- Direct, when it launched its own food-to- ed $500 million in revenue. ready being squeezed in New York by a hand- market share look doorstep service earlier this month. But it is in the process of moving its head- ful of small food startups, an increasingly cu- ripe for the picking The move by Amazon Fresh into New quarters and operations to the South Bronx, rious Google and supermarkets including York came at a decisive moment for Fresh- where it must make good on its promise to cre- See FRESHDIRECT on Page 39 REPORT Mayor’s old pal wins new business GROWING A BUSINESS GUIDE A who’s who of resources to help as a NYC labor, corporate lobbyist companies navigate lawmakers questioned the prece- New York PAGE 14 For a City Hall ‘in,’ dent set by taxpayer-funded raises clients turn to DC for workers at the low-wage bus companies. power Harold Ickes Behind the scenes, one of the country’s pre-eminent political fix- ers had spent months laying the BY CHRIS BRAGG groundwork for the bill, lobbying records show. 43 5 A few months ago, Mayor Bill de Harold Ickes, a former top Clin- Blasio rushed a union-backed bill ton administration official,had long through the City Council that been a fixture in the center of the handed $42 million in public funds getty images lobbying universe: Washington, to privately employed school-bus HAROLD ICKES’ clients with city concerns D.C. But since his protégé Mr. de workers. Even some labor-friendly include the soda industry and JPMorgan. See MAYOR on Page 40 NEWSPAPER 71486 01068 0 ASSISTANT M.E.’S NOTE No to iBonds FYICRAINSNEWYORK.COM Gov. Andrew Cuomo stopped by our office six months ago, fielding questions on the record At Oscar de la Renta’s firm, about a range of topics, such as his life after founder’s death freshly disbanded Moreland Commission. (“It’s my hen designer Oscar de la Renta commission,” he emphasized. “I (pictured) died last week at 82, he can’t ‘interfere’ with it, because it left behind something of a rarity in Erik Engquist W is mine. It is controlled by me.”) today’s fashion industry: a successful, family- Looking ahead to Election Day, I run company that has remained independent sneaked in a query about a proposal getting scant from conglomerates. ¶ Without Mr. de la attention from the public: a $2 billion bond act to Renta, whose visions exemplified haute couture, upgrade technology in schools. I confess: It was a some are concerned his namesake brand might ap images setup. The governor was touting the plan to appeal not retain its loyal following. But he had already set the stage for his $150 million business. Mr. to parents, perhaps to offset growing concerns de la Renta’s son-in-law Alex Bolen has been at the helm as chief executive for a decade, and his about the new Common Core standards, but I stepdaughter Eliza Bolen has been involved with the company since the mid-’90s. ¶ Earlier this knew the bond act didn’t meet the criteria for month, Mr. de la Renta announced that Peter Copping would succeed him in leading the design public borrowing espoused by fiscal watchdogs, side of the business. Mr. Copping, formerly at Nina Ricci, will debut his first collection as including this newspaper. Which is, whatever creative director in February during New York’s Fashion Week. ¶ Founded 49 years ago, Mr. de bonds are paying for should last at least as long as it la Renta’s namesake brand—known for its feminine yet trendsetting looks worn by celebrities takes the government to pay off the debt. In this such as Sarah Jessica Parker and first ladies as recent as Michelle Obama—is available in 38 case, eight to 30 years. It’s possible that iPads will countries.The fashion house operates seven freestanding boutiques, including a lavish Madison help some children learn, but within five years Avenue flagship. ¶ Two years ago, the company doubled its office space to 35,000 square feet they’ll be paperweights or, more likely, leaking with new digs on West 42nd Street. It also has moved beyond its red-carpet roots into tungsten in landfills. I haven’t seen an IBM PC, childrenswear, beauty products and other industry must-haves. —adrianne pasquarelli Apple IIe or Wang word processor since the days of NEW CHAPTER FOR E-BOOKS. Amazon ments about the product’s safety.The big hair and glasnost. After Mr. Cuomo touted the reached a multiyear deal with Simon probe follows a warning issued by the HOORAY! bond act at our meeting, I confronted him with the & Schuster for print and digital National Highway Traffic Safety THE BRONX’S only full-service bookstore, books. According to the agreement, Administration about defects in the a Barnes & Noble in Co-op City, reached above rationale. I was sure I had him cornered, but the publisher will set prices for e- SUBWAY a deal with its landlord to remain open company’s air bags. … for another two years. the man is nothing if not quick: He retorted that books, but the tech giant can dis- RIDERSHIP RECORD. The Metropoli- the beneficiaries of the spending—students— count them in certain cases. Simon tan Transportation Authority re- would be around for at least 30 years, using their & Schuster’s contract was set to ex- ported that 6.1 million people rode pire in two months. The deal puts the subway on Sept. 23—the highest iPad-enhanced brains to improve their lives and the pressure on Hachette, which is en- volume ever. The agency promoted state’s economy. Of course, such a standard would gaged in a brutal, months-long bat- the figure to garner support for its justify borrowing for any school-related expense, tle with Amazon over e-book pric- five-year capital plan, which is short from teacher salaries to field trips—hardly ing. … NY FED FUMBLED JPM PROBE. $15.2 billion. … CBS EYES DIGITAL The Federal Reserve Bank of New NEWS CHANNEL. CBS News is OY VEY! something a fiscally conservative governor would York failed to review JPMorgan preparing to launch CBSN, a 24- AT THE FIRST—and likely only— consider. But I didn’t go there. We had bigger fish Chase’s chief investment office hour digital news channel,by Nov.4. gubernatorial debate, Gov. Andrew to fry that day, and sometimes it’s better to let ahead of the bank’s “London whale” It will stream to TV sets, computers Cuomo and GOP challenger Rob Astorino debacle despite warning signs that and mobile devices. The service will exchanged low blows. things go. And to save them for snarky dated as far back as 2008, according feature original reporting from CBS commentaries when voters are paying attention. to a report by the Fed board’s Office reporters, as well as stories trending of the Inspector on CBSNews.com. General. The New ‘Christmas has Similar services have THIS WEEK IN CRAIN’S York Fed’s examina- been launched by tion was flawed be- come early for CNN and ABC cause of “a lack of su- News. …CITY HALL buck ennis IN THE BOROUGHS-------------------------- 3 pervisory resources,” the NYPD’ APPOINTS CHIEF DATA IN THE MARKETS----------------------------------4 weaknesses in plan- —Police Commissioner Bill GEEK . The de Blasio Other top picks include Brooklyn’s ning procedure and a Bratton, unveiling the administration Peter Luger Steak House for best THE INSIDER -----------------------------------------------7 loss of “institutional department’s plan to buy named Amen Ra burger and the West Village’s Sushi BUSINESS PEOPLE ---------------------------8 knowledge” after the 41,000 tablets and mobile Mashariki chief ana- Nakazawa for best new restaurant. devices with $160 million WRONGFUL-DEATH SUIT. OPINION --------------------------------------------------------10 team investigating lytics officer. Mr. … In an ef- JPMorgan was reor- in asset-forfeiture cash Mashariki, former fort to find out the cause of her GREG DAVID--------------------------------------------11 ganized in 2011.The London-whale chief technology officer at the U.S. mother’s death, Melissa Rivers plans REPORT-----------------------------------------------------------14 fiasco cost the bank $6 billion. … Office of Personnel Management, to sue Yorkville Endoscopy, the Up- NEW YORK, NEW YORK FAULTY AIR BAGS. U.S.Attorney Preet will lead the city’s open-data strate- per East Side clinic where comedian FOR THE RECORD---------------------------21 Bharara is investigating whether gies. … ZAGAT WINNERS.
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