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PUBLICATION.Qxd 20090608--A--0001-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/5/2009 8:58 PM Page 1 INSIDE FUTURE OF NY SMALL TOP STORIES BUSINESS Why New York is These survival a great place to strategies can blunt recession’s damage bust up a business ® PAGE 3 PAGE 19 VOL. XXV, NO. 23 WWW.CRAINSNEWYORK.COM JUNE 8-14, 2009 PRICE: $3.00 YOUR GOVERNMENT IN ACTION CITY HALL Outspoken media NYC pushes analyst blogs a path to stardom $2.7B break PAGE 3 The anti-AIG: Travelers shows for big biz how money’s made Tax change may keep HQs here; IN THE MARKETS, PAGE 4 timing, jobs growth in question Celeb chef won’t let bankruptcy ruin BY DANIEL MASSEY his future plans the bloomberg administration is pushing a NEW YORK, NEW YORK, P. 6 proposal that would dramatically cut city taxes on corporate profits, providing $2.7 billion in savings Obama should let to 27,000 companies, including many of the city’s largest, over the first 10 years.The tax break, which bailed-out banks would be phased in starting in fiscal 2010,is expect- repay billions early ed to ultimately save businesses here about $550 million a year. EDITORIAL, PAGE 10 Mayor Michael Bloomberg and City Council Speaker Christine Quinn maintain that the change, designed to bring the city in line with statewide tax BUSINESS LIVES See $2.7B TAX BREAK on Page 8 WEDDING PLANNERS Gay marriage advocates ALBANY fight for the right to tie the knot in New York PAGE 27 bloomberg news Paterson fights FRANK TALK: “They understand a new set of regulations is coming,” Rep. Barney Frank says of newly attentive bankers. to stay in game WASHINGTON Time running out for headway before Legislature adjourns ALL HAIL BARNEY BY ERIK ENGQUIST Wall Streeters court the man from Mass. an increasingly anx- ious Gov. David Pater- INDEX They have to. He’s calling the shots. son, cornered by an un- cooperative Legislature THE INSIDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _12 and a slumping econo- REAL ESTATE DEALS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _13 Financial Services Committee. He is mar- my,has charted a course NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _14 BY AARON ELSTEIN shaling legislation that promises to make Wall back to popularity. MANAGEMENT CONSULTANTS _ _ _ _ _ _22 Street a more regulated and less prosperous Back-slapping and just about everyone in banking wants to be place for years to come, and to hear it from joke-cracking are out; CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _24 Barney Frank’s friend nowadays. some of the bankers at the event, they couldn’t tough talk and vetoes CORPORATE LADDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _28 Last week, 600 people, including execu- be happier that a tough-talking, capital-L are in. EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _28 tives from Goldman Sachs and J.P. Morgan Liberal Democrat from Massachusetts is Reining in lawmak- THE WEEKS AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _29 Chase,filled the cavernous National Building leading the charge to rewrite their futures. ers and reprising the fis- buck ennis SeeWEEK AT IN DEADLINE REVIEW _ _ _on _ _ _ _ _ _ _ _Page _ _ _ _ _ _ _ _ _ _ _ _ _ _2 _ _ _ _ _ _ _ _ _ _ _ _31 Museum in Washington, D.C., for a $5,000- “We sparred early,” recalls former Repub- cal conservatism that THE SINKING of his bottle bill per-table tribute to the chairman of the House See ALL HAIL on Page 26 See PATERSON on Page 8 was a serious setback. 23 5 BRAVE The sixth installment in Crain’s series looks at nonprofits scrambling to woo donors and cut ELECTRONIC EDITION NEW costs as income and endowments shrivel Page 2 NEWSPAPER WORLD 71486 01068 0 20090608--A--0002-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/5/2009 7:59 PM Page 1 this climate,” says Bill Baccaglini, execu- IN BRIEF tive director of the Foundling. “People are Nonprofits gird more likely to stay with whom they’ve giv- HELPED ALONG BY THE FINANCIAL MELTDOWN, en to before.” HOTEL ROOM RATES HAVE DECLINED FASTER Instead of reaching out to new donors, in the city than in any other major market in many groups are lavishing attention on the the country. In April, the city’s hotel room rates for long battle ones they already have. Jilly Stephens, ex- were down 26%, to $224—$78 below year- ecutive director of City Harvest, is taking earlier levels, according to PKF Consulting. big donors out to lunch and dinner non- Nationwide, the decline was 9.5%. Downward stop these days. At least six times a year, pressure on rates will likely continue in New Groups struggle to hold skittish donors the organization hosts a group dinner for York for at least another two years, as properties its biggest givers. under development add 10,000 hotel rooms. cial-services groups, many of which have BY MIRIAM KREININ SOUCCAR actually seen demand for their services rise Aiming for the short list GOVERNORS ISLAND IS EXPECTED TO HAVE as the economy sinks,are feeling the pinch. “when we realized things were going MORE THAN 200,000 VISITORS THIS SUMMER, karen brooks hopkins saw it coming. The Metropolitan Council on Jewish to get tough,we started finding ways to get a record for the tiny island park located off the “Last summer, when it was clear that Poverty, for example, says the number of really close to our donors,” Ms. Stephens tip of Manhattan.The main draw will be the the world as we knew it was coming apart, people coming to its 40 food pantries has says. “We are working hard to make sure city’s first public art quadrennial, Plot 09:This I looked at my boyfriend and said,‘The jumped by 30% this year,and exec- we stay on donors’ short lists, and a lot of World & Nearer Ones, to be produced by nonprof- next year of my life is going to be utives there expect those num- those lists are becoming shorter.” it Creative Time.The exhibition, which opens hell,’ ” says Ms. Hopkins, presi- bers to keep on growing. Yet At the same time,organizations are cut- June 27, will feature 19 public art commissions dent of the Brooklyn Academy of despite making every effort, ting every cost they can. On the fundrais- by artists from nine countries.The island, a Music. “And it has been.” the agency hasn’t been able ing side, galas—which often bring in 25% former military base that is now operated by the With steep declines in city, to raise enough outside of a nonprofit’s annual income—are being Governors Island Preservation and Education foundation and corporate sup- money to offset government toned down, produced in-house or Corp., has been open to the public since 2005. port, and a nearly 30% drop in the funding cuts of $1 million. scrapped altogether. Fundraising execu- value of BAM’s endowment, Ms. tives say donors are growing tired of the GOV. DAVID PATERSON QUIETLY PROPOSED AN Hopkins had to shelve growth rubber-chicken dinner/awards format,and ELECTRONICS RECYCLING BILL LAST WEEK plans and instead cut $2 million In this sixth installment in without deep-pocketed corporate donors that environmentalists say is a gift to industry out of this year’s $40 million BRAVE our series, Crain’s looks at to buy up tables, the events aren’t bringing because it is far weaker than the e-waste bill budget and another $1 million NEW nonprofits’ efforts to fill in nearly as much money. pending in the Legislature. Mr. Paterson’s bill out of next year’s. yawning gaps in funding, The New York City chapter of the “holds manufacturers responsible for taking BAM’s story is typical. For Alzheimer’s Association produced its re- back unbelievably low quantities of the electron- many of the city’s 25,000 non- WORLD using a mix of strategies cent gala in-house for the first time. The ics they sell,” says Kate Sinding, a senior attorney profits, this has been a horrible organization’s program officers worked at the Natural Resources Defense Council in year. With funders cutting back overtime, but the effort saved the associa- New York City.The governor’s bill would pre- across the board, these groups are scram- “I’m doing everything I can to raise tion $75,000—no small change for a empt the city’s stronger e-waste bill, which has bling to find new ways to appeal to skittish more money,” says William Rapfogel, group that has lost 70% of its corporate yet to take effect.
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