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

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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. Both will die if not passed donors, cut costs and latch on to new rev- chief executive of the Met Council. “It’s a and foundation gifts in the past year. before the legislative session ends in two weeks. enue sources. In short, the way nonprofits good thing I’m a Sabbath observer, be- In addition, nonprofits are scaling have done business for years is being cause otherwise I’d be working 24/7 in- back some of their programs or opting for CLEAR CHANNEL COMMUNICATIONS MAY BE turned on its head. stead of 24/6.” cheaper ways to deliver them.The Brook- LEVERAGED TO THE HILT AND BATTLING WITH In order to survive, groups are dramat- lyn Museum of Art has canceled a Don- its lenders, but its digital radio unit is doing well. One for the record books ically altering their fundraising strategies. ald Saff show this fall. Even the mighty Digital ad revenue grew 22% in 2008 and now “this is the worst crisis for nonprofits For starters, they are curtailing direct mail Metropolitan Museum of Art is cutting makes up 5% of the radio division’s $3.3 billion in 25 years,” says Melissa Berman, presi- campaigns—long a fundraising staple. back, dipping into its own holdings and in sales, a spokeswoman says.The firm hopes to dent and chief executive of Rockefeller Citymeals-on-Wheels canceled its spring relying on only two loaned canvases—no- continue that growth with today’s launch of an Philanthropy Advisors. mailing, and the New York Foundling is toriously expensive to ship and insure—to online media player at iheartradio.com, which New York nonprofits are reporting going further,cutting its direct mail budg- mount its upcoming Vermeer show in offers advertisers new opportunities for video ads. drops in income ranging from a modest et by 60% for the coming fiscal year,begin- September. The player gives users access for the first time 10% to an astonishing 70%. Arts and ad- ning July 1.They are shifting to the Inter- Groups are also looking for new ways to streams from over 350 stations in one place.
vocacy groups are being hit the hardest, net to find new donors or simply trying to to generate revenue. The Brooklyn Acad- since many donors view such organiza- better cultivate the ones they already have. emy of Music has started aggressively vol. xxv, no. 23, june 8, 2009—Crain’s New York Business tions’ efforts as less essential. But even so- “Bringing in new donors is difficult in marketing its unused space.In September, (issn 8756-789x) is published weekly, except for the 1st and 3rd it will rent out its opera week of July, the 1st and 5th week of August, the 4th week of November and the 4th week of December, by Crain Communica- hall to VH1 for several tions Inc., 711 Third Ave., New York, NY 10017. Periodicals postage GATHERING SUPPORT: weeks. paid at New York, N.Y., and additional mailing offices. Postmas- Jilly Stephens, shown at Despite the pain that ter: Send address changes to: Crain’s New York Business, Circula- IN OUT tion Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. City Harvest’s “On Your all the new strategies are for subscriber service: Call (888) 909-9111. Fax (313) 446-6777. Plate” Luncheon, says the causing, a surprising $3.00 a copy, $59.79 one year, $109.79 two years. nonprofit wants to get (GST No. 13676-0444-RT) really close to its donors. number of nonprofit ©Entire contents copyright 2009 by Crain Communications Inc. managers admit that All rights reserved. many of the new ap- proaches are likely to outlive the recession. ECONOMETER And why not? Tony Hannigan, ex- Weekly shift of the city’s economy. INTIMATE PARTIES SWANKY GALAS ecutive director of the THE NEWS LURCHED from the un-bad—measures Center for Urban Com- SPIN: MORE BANG PER SCARCE BUCK showing that sectors are losing ground at a slower munity Services, is a  pace—to the freakishly good. Productivity in the first quarter rose, rare indeed during a recession. prime example. He is trying to slash the cost of his group’s fall gala by

POSITIVE NEGATIVE 30%. Instead of a glitzy

   CLOUDY event like last year’s par- ty at the American Mu- S seum of Natural Histo- Y T O N ry,he is looking for a less R FREE SERVICES BIG CHECKS N M expensive venue—or U SPIN: A BIRD IN THE HAND ... Y S better yet, one that is donated. “There are les- sons to be learned 345K +6.7% +2.3% from this economy,” JOBS LOST RISE IN INDEX BLOOMBERG/ Mr.Hannigan says. in April—the of pending home CRAIN’S NY “We’re working hard smallest dip in sales in April vs. stock to limit costs, and I was eight months March index (Labor Dept.) (Nat’l Assn. of weekly change ONLINE PITCHES DIRECT MAIL saying to myself, ‘Why Realtors) weren’t we doing this SPIN: BETTER, FASTER ... CHEAPER getty images anyway in the past?’ ”

2 | Crain’s New York Business | June 8, 2009 20090608--A--0003-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/5/2009 8:59 PM Page 1

NY bankruptcy courts fill up Cases generate big The Southern District bench has handled what most experts fees for attorneys, consider to be the largest and most SAY IT LOUD: restructuring firms complex Chapter 11 filings of the Richard Greenfield is decade: Enron, WorldCom, Delta willing to give voice to Air Lines and Adelphia, to name a what others won’t. BY HILARY POTKEWITZ few.Lehman Brothers,which filed for protection after a frenzied big apple boosters typically weekend of negotiations collapsed push New York as a great place to last September, may be the daddy do business. What’s said less often of them all, with $613 billion in is that New York is also great place debt to be restructured or resolved to go bust. and an estimated $900 million in When General Motors chose fees at stake. to file for bankruptcy protection “During a big case, a lot of de-

buck ennis last week in New York, rather than cisions have to be made in a rela- in its hometown of Detroit, it tively quick time frame—you don’t shone a spotlight on an aspect of want the patient to die on the op- the local economic machinery that erating table, so to speak,” Mr. most find tough to brag about: Karotkin says, noting that bank- Agent provocateur New York’s bankruptcy courts ruptcy judges in New York are of- handle more big and gnarly Chap- ten called upon to sit late into the ter 11 bankruptcies than any other night and on weekends. court district in the country. on media mission The 1,217 corporate bankrupt- On the record cy filings in New York’s Southern the southern district bank- District so far this year are nearly ruptcy court just started digitally “We try to be vocal,and we’re not Warner—and praised it for taking double the number filed in second- recording hearings and posting Stock analyst breaks afraid of being provocative,” Mr. actions he believes benefit investors. place Delaware over the same pe- them online, so that the next time, the mold; rudely Greenfield says. “That’s often how The love goes both ways. On a riod, the two courts’ records show. say,an entire courtroom breaks out we get heard.” recent earnings call, Time Warner While the recession casts a in applause at 12:45 a.m.—as hap- blogs a path toward But he’s not only loud. He pos- Chief Executive Jeffrey Bewkes shadow over the city and country, pened on the night last September power and influence sesses a messianic zeal, waging complimented Mr. Greenfield for it’s the business of bankruptcy when Judge James Peck approved marathon campaigns against what “writing some great stuff.” that’s keeping the lights on in the sale of several Lehman Broth- he sees as corporate incompetence. Other crusades, like the one the many a Manhattan office building. ers entities to Barclays in record BY MATTHEW FLAMM Time Warner was a frequent analyst is fighting to get Viacom to “The judges on the bench here time—it can be studied by the target for years. Mr. Greenfield ha- dump its CEO,haven’t gone as well. are very sophisticated and have a public. in the buttoned-down world of rangued the company to get rid of A Viacom spokesman once branded lot of experience with large cases,” So far this year, the Southern financial analysts, some cheerlead AOL, Time Warner Cable and Mr. Greenfield “the Jerry Springer says Stephen Karotkin,a partner at District has logged twice as many for the companies they follow, some Time Inc. in order to focus on its of financial analysts.”The company Weil Gotshal & Manges and a filings as there were during all of couch their critiques in jargon and profitable cable channels and won’t invite him to events or take his member of the team handling the last year.Remember:It’s only June. some speak their minds. Then movie studio. When the calls went questions on earnings calls. GM bankruptcy case. See BANKRUPTCY on Page 8 there’s Richard Greenfield. unheeded, he appealed to higher Mr. Greenfield’s clients, howev- While his peers confine them- authorities. er, say they like hearing his unvar- selves to making calls on stocks, the “The board of directors must act, nished opinions and insist that they CHAPTER AND WORSE Pali Research media analyst fre- as management simply appears don’t care if sometimes companies NY’s U.S. Bankruptcy Court for the South- Three law firms dominate the market for quently makes news by loudly voic- complacent,” he demanded in bold shut him out. ern District has seen more Chapter 11 bankruptcy filings in NY in which debt is ing extreme opinions that others print in a 2007 research note. filings this year than Delaware’s district. greater than $500 million. might only think about. In addition This past March,Mr.Greenfield Undiscovered gems Weil Gotshal to his appearances on CNBC, his ran a post headlined, “AOL’s Randy “a lot of investors aren’t looking NY Southern District & Manges wildly quotable blog posts and re- and Ron show must end.”He insist- to hear what management has to Delaware 1,217 . 14 search reports make him a favorite ed that Time Warner fire Randy say,” says Derek Baines, a senior an- 1,081 . Kirkland Everyone of reporters at The New York Times Falco and Ron Grant, the Internet alyst with research firm SNL Kagan 712 30 607 & Ellis 13 . .else and other publications. division’s top executives. When and a reader of Mr. Greenfield’s re- . . both were sacked later that day, an- search. “They’re looking for trends 240 226 5 Larger than life Skadden Arps . other post trumpeted,“AOL Tyran- that have not been noticed and that 2007 2008 2009* Slate Meagher. mr.greenfield has given Pali Cap- ny Ends.” might impact the stock.” & Flom Total major filings in ’08: 62 ital, the relatively small parent com- Last week, he raised his esti- Meanwhile, Mr. Greenfield’s *Through June 3. Source: Courts pany, an outsized media footprint. mates and target price on Time See MEDIA MOUTH on Page 26 Residential brokers break fresh ground

poured. Cake was served. There what it was a year earlier, and sales boys,” says Barbara Fox, founder of Harlem storefronts. The move They close offices, wasn’t a dry eye in the room. also off sharply in the other bor- Fox Residential Group, which has pared about 20% of Warburg’s total franchise, try The 13-year-old outfit is the lat- oughs, New York’s 700 residential 40 brokers. “Some firms have ex- overhead, according to President new business lines est and largest local broker- shops are strategizing for panded in leaps and bounds, and Frederick Peters. Though the Vil- age to succumb to the dis- GLUT survival. they were not able to survive.” lage location was profitable, he cal- mal housing market. Three They are cutting every- culated that Warburg’s other three BY AMANDA FUNG other residential special- where they possibly can: Slashing rent costs offices could pick up the slack. ists—including JC DeNiro renegotiating for lower ms.fox recently renegotiated her “At the time, I felt terrible,” says last wednesday, more than 100 & Associates, a boutique rents, shuttering under- lease to get a 20% rent reduction on Mr. Peters, who laid off seven bro- Coldwell Banker Hunt Kennedy founded in the 1960s by 700 performing offices, reduc- 2,500 square feet at Madison Av- kers in connection with the closures, brokers and shareholders gathered Robert De Niro’s uncle— NUMBER of ing staff, adding revenue enue between East 78th and East cutting the total to 140. “But we at its midtown headquarters to bid have gone bust in the past residential streams and embracing 79th streets. were responsive to the environment, the Manhattan franchise of one of six months. With first- brokerages new business models. Warburg Realty took that idea to and that enabled us to remain prof- the nation’s biggest residential real quarter sales volume in in the city “This period will sepa- the next level earlier this year, when itable during the first quarter.” estate firms farewell. Wine was Manhattan roughly half rate the men from the it closed its West Village and See RESIDENTIAL on Page 9

June 8, 2009 | Crain’s New York Business | 3 20090608--A--0004-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/5/2009 8:00 PM Page 1

IN THE MARKETS by Aaron Elstein

Insurer finds shelter from the storm erhaps the famous red umbrella is shielding Travelers Cos. from the storms hitting many other Pinsurers. More likely, the folks who run Travelers didn’t forget that an insurance company’s job, above all else, is to be safe, sound and ever so dull. ROUND-TRIP Travelers, which enters the Dow Jones industrial average on Monday, seems to be doing almost everything right as sputtering rivals like Hartford Financial Services Group turn to the feds for bailout money to cover their NY’s Leading Tech Companies enormous losses. Rely on Amper Travelers didn’t lose its head over subprime and has virtually no exposure What makes Amper one of the Crain's New York Business fastest-growing CPA firms and one of the largest firms in to toxic mortgages, according to research firm CreditSights. the US? It's the trust and confidence that thousands of companies have placed in us for more than 40 years. At a presentation for investors last week, management You should know that Amper has: emphasized that it is seizing market share from financially troubled competitors. Presumably, that means it is getting One of the leading software, Internet commerce, IT services and life science companies business that used to go to American International Group. practices in Metro New York Served more than 150 public and privately-held tech companies Indeed, the company, with $32 Management who billion of capital, is so robust finan- has long lobbied Specialists in accounting, domestic and international tax matters, and consulting cially that it’s actually buying back for a breakup of An extensive financing, legal, and business network stock nowadays,something most fi- Citi and who lost nancial institutions gave up long ago patience with Mr. to conserve cash. It has bought back Pandit many For more information on how Amper can meet $575 million in stock so far this months ago. Citi’s your needs, contact us today: quarter, according to Barclays Cap- stock has lost 83% 212.682.1600 ital, and last week said it plans to re- of its value in the past www.amper.com “Seeing Beyond the Numbers...” purchase approximately $1.75 bil- 12 months,nearly double the rate of lion in all, more than double its its peer group. previous estimate. The insurer “Think Jerry Grundhofer is raised its operating earnings fore- measuring drapes, with Vik out of cast to reflect the diminished share town?” Mr. Smith wrote in an count. e-mail to clients Friday.“I may head The big issue facing Travelers: over and help him pick colors.” Just how many serious hurricanes Mr. Pandit, for his part, warned will hit the Atlantic coast this sum- Friday that the government won’t mer? According to CreditSights, get out of the hair of Citi or other Travelers trailed only AIG as the ailing companies any time soon. It largest underwriter of commercial so happens he made his comments insurance in hurricane-exposed re- in Russia, a nation that knows quite gions last year. With AIG largely a bit about state ownership. out of the picture, Travelers might “Government interventions are find itself facing some seriously here to stay with us for a long soaking headwinds from storms of time,” Mr. Pandit said, according to the more traditional variety. Reuters. Inner-Citi shake-up Housing prices still citigroup inc. isn’t going quietly as have a ways to fall? it prepares to depart the Dow Jones industrial average. paul miller, a highly regarded The Federal Deposit Insurance banking analyst at FBR Capital Corp. has grown impatient with the Markets in Arlington,Va.,has visit- glacial pace of change at what used ed the New York suburbs and deems to be the world’s largest bank, ac- housing still overpriced. While cording to The Wall Street Journal, housing prices and is pushing to replace Chief Ex- have declined by ecutive Vikram Pandit 25% to 35%, bro- (below) with Jerry kers have told him Grundhofer (above that sellers should right), a former lower their price U.S. Bancorp expectations by CEO who is now about 10% to attract buyers. Not a Citi director. helping matters: Jumbo mortgages are Regime change only available to borrowers who can can’t come soon afford down payments of at least enough for angry Citi 25% and have FICO scores of 730 shareholders like Bill or better. Then they can get rates of
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Hunt Kennedy in 2007 but just Celeb chef’s landed at Sierra Realty Corp. She was one of the lucky ones from her new course former firm, which closed last tar chef Geoffrey week. Zakarian Acting transfers nicely, she (left) has says, “teaching you to think been knocked around quickly, on your feet.” S Other benefits include during the downturn. In April, his Town eatery filed impressing colleagues with her credits, which include an Emmy for bankruptcy, and last for the 1978 TV miniseries year, the formal dining Holocaust and throwing a cake at room of his Country Arnold Schwarzenegger in Raw Deal. She is best-known for playing restaurant shuttered. But Molly Ringwald’s older sister in those failures did not derail Sixteen Candles. She hasn’t given two deals that he inked up on acting and still goes to before the economic auditions between negotiations. meltdown began. getty images In September, Mr. School lunches Zakarian will launch The Lamb’s Club at The Chatwal get healthy hotel on East 44th Street, which will have a bar operated by a tiny, year-old company in nightclub impresarios David Rabin and Will Regen. Brooklyn called Butter Beans is “We have been working with those three for quite a taking on the big task of providing while,” says a spokesman for the property, which is owned healthy meals to city school Vikram Chatwal students. by celebrity hotelier . Kids, parents and even teachers In addition, Mr. Zakarian is taking over The Emery Bar at who are fed up with the food The Benjamin hotel next year.The space will be completely served in school cafeterias may renovated, says hotel General Manager Andrew Labetti. want to sign up for Butter Beans meals, which are delivered to HINES IS “We look forward to working more work on it. In February, schools.The fare includes such with him on an exciting new Doubleday announced a Sept. 22 items as a rice pasta salad with PLEASED TO WELCOME restaurant concept,” he adds. release, with a first printing of tofu, beans and veggies, or chicken TWO FULL FLOOR TENANTS Town was in the Chambers 600,000 copies—and later moved and cheese quesadillas with Hotel and Country in The Glory to Sept. 15. hidden squash, at around $6 a TO Carlton. Mr. Zakarian still pop. 600 LEXINGTON AVENUE operates Café at Country in The Butter Beans chief executive Carlton. He did not return phone Real-life role and co-founder, Belinda Di calls for comment. in real estate Giambattista, defends the price— triple the cost of most school many new yorkers are juggling lunches. Double whammy multiple jobs to scrape by these “Our mission is to provide days, but Blanche Baker Magill healthy food, which means no HINES THANKS THE FOLLOWING BROKERS: from Doubleday (below) has a two-year head start refined sugar or processed food,” JOSH FRIEDMAN AND DAN MADISON most publishers would want to on moonlighting. she says. get out of the way of the biggest The award- A 2005 graduate of New York OF NEWMARK KNIGHT FRANK; book event of the year: the Sept. winning University’s Stern School of 15 publication of The Lost Symbol, actress is Business, Ms. Di Giambattista JAMES S. SAUNDERS AND NOEL M. FLAGG Dan Brown’s follow-up to The Da working as a just won a $50,000 grant from her OF NEWMARK KNIGHT FRANK WITH Vinci Code, which will have a real estate alma mater in the annual business MIMI HOCKMAN OF CENTRIC REA WHO record 5 million-copy first broker now plan competition. She’ll need the REPRESENTED LADDER CAPITAL FINANCE LLC printing. because acting funds to expand the business, But Mr. Brown’s publisher, doesn’t offer “as which serves just six Brooklyn Doubleday, is planning to ride the many opportunities for women to elementary schools. SEVERAL BOUTIQUE FLOORS novel’s wave. make money as they age,” says WITH EXCELLENT VIEWS ARE AVAILABLE: The Random House division Ms. Baker Magill, 52. Contributors:Theresa Agovino, will bring out Jon Krakauer’s Where She started at Coldwell Banker Matthew Flamm

35TH FLOOR 6,767 SF Men Win Glory the same day.The book by the Into Thin Air author
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14TH FLOOR 4,107 SF Army Ranger after Sept. 11, 2001. GOODBYE, BARNA. HELLO, OASIS. “We believe Sept. 15 presents a The Giraffe Hotel at 365 Park Ave. FOR LEASING INFORMATION CONTACT: unique opportunity,” says a South has a new rooftop lounge, BARBARA WINTER, 212.812.5990 Doubleday spokeswoman. “There Oasis, operated by Hospitality [email protected] will be an unprecedented number Holdings. Barna—which occupied DOUGLAS NEYE, 212.812.5785 of consumers in bookstores, and the rooftop and an eatery below [email protected] Jon Krakauer stands only to street level but closed earlier this benefit from that.” year—was run by infamous bar Last June, Mr. Krakauer owner Michael Dorrian. withdrew the book, which had been scheduled for fall 2008, to do WWW.600LEX.COM CN012983 6/4/09 3:40 PM Page 1

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TOPPING THE GOVERNOR’S LIST INITIATIVE DESCRIPTION UPSHOT Paterson fights to stay in game SPENDING CAP Measure to tie state budget Legislature has shown no increases to the rate of inflation interest in the bill Continued from Page 1 pushed through—to require nickel ing the governor. PROPERTY TAX CAP Statutory limitation on Likely to be blocked by buoyed him last summer will, he deposits on bottled water—was Mr. Paterson perhaps did property tax bills lawmakers who fear it would hopes, stabilize the state budget and tossed into the trash bin by a judge. not immediately grasp the starve schools of revenue lift his record-low approval rating. The governor was blamed for al- essence of Mr. Silver’s sug- GAY MARRIAGE NY would be the seventh Bill has 20 supporters in the Mr. Paterson has more than a year lowing the state budget to grow by gestion, but his response un- state to allow it state Senate but needs 32 until the next election, but he needs 8.4%, and just two months after be- dermined his new toughness. accomplishments before the Legis- ing enacted, it is already springing “I couldn’t be more delight- PENSION TIER V Less generous pension for Legislative approval is likely lature adjourns in two weeks to proj- leaks. Tax revenues came in $239 ed,” he said cheerfully. new government workers after unions’ sign-off last week ect an image of competence and de- million short of projections last “There’s no reason we ter political challengers. month, and the bottle bill’s demise shouldn’t be able to pass some ETHICS REFORM Revamping the bodies that Various proposals won’t be blew open an $118 million hole.Mr. form of legislation … when investigate state officials reconciled until fall at the Bleak prospects Paterson had been warned that we come back in the fall.” earliest mr. paterson has introduced 47 some of the bill’s requirements were Ms. Bartoletti says, “I bills this year, but his staff says he is unconstitutional or impossible for think his advisers wish he’d concentrating on those that cap bottlers to meet by its effective date put his fist in his mouth before he tends would jeopardize school fund- The governor did reach an agree- spending, legalize gay marriage, trim of June 1. Fixes proposed by the said that.” With criminal cases ing. Frustrated that no lawmaker ment Friday with public employee pension benefits, strengthen ethics Legislature went nowhere, and Mr. pending against several legislators, would even introduce his bill, Mr. unions for a new pension tier, which enforcement and curb property taxes. Paterson waited until late May to good-government groups are ready Paterson pledged to enforce it unilat- would provide less generous benefits “Politically it’s extraordinarily submit his own solution. Nothing to pounce on Albany leaders.“They erally with vetoes. Last week, he ve- to future state workers. In exchange, important that he can come out of was resolved, and a week later U.S. can’t afford to have us go out and say, toed a labor-friendly pension bill that he killed a proposal to lay off 8,900 this session saying, ‘Look at how District Judge Thomas Griesa sus- ‘What did you accomplish on re- had passed for 17 consecutive years. workers and will instead offer much I’ve accomplished,’” says Bar- pended the bill until next April. form?’ Which we will. We will beat But the Legislature does not seem $20,000 severance packages to 4,500 bara Bartoletti,the New York League Meanwhile, the governor’s them up,” Ms. Bartoletti says. intimidated by a governor limping workers.The Legislature is expected of Women Voters’legislative director. chances of getting the rest of his agen- Additionally, Mr. Paterson along with a 19% job approval rating. to codify the deal. The prospects look bleak. His da passed are dwindling as the session launched the gay marriage drive While Mr. Paterson says pen- first full legislative session as gover- winds down. On June 3, just 19 days without the careful preparation re- Pension victory sion reform is vital for the state’s nor, which may be his last before ri- before the scheduled end of the ses- quired, an insider says. The bill’s property taxes, a perennial top is- fiscal health, more measures like it vals move to challenge him in the sion,Mr.Paterson convened a legisla- passage is in grave doubt. A NY1 sue for voters outside New York are essential for his political well- 2010 election, has been rocky. The tive leaders’ meeting on government survey found that only 20 state sen- City, are a priority for the governor being. The one time his public ap- Metropolitan Transportation Au- ethics reform. A consensus was ators openly support it. It needs 32 and many lawmakers.But the statu- proval soared was last summer thority bailout got mixed reviews. quickly reached that it was too late to Senate votes to pass. tory limits Mr. Paterson seeks re- when he carried a banner of fiscal The budget he and legislators pass it.Then Assembly Speaker Shel- Mr.Silver,the state’s most power- main elusive. Reviving a modest re- conservatism across the state. He forged was criticized as bloated. don Silver proposed that the Legisla- ful legislator, has shown no signs of bate program may be all that the has been trying to get back to that And the key bill Mr. Paterson ture should police itself—contradict- accepting a spending cap that he con- Legislature can do. ever since.

increase its sales tax by half a percent- cate its headquarters in New York age point and repeal a tax exemption City,” he says. “I can’t imagine it A $2.7B tax break for big biz for clothing items priced higher than would be such an important factor $110—measures that, combined that it would cause any significant in- Continued from Page 1 group that supports the tax change. million in new revenue in the upcom- with the push for the corporate tax ward migration.” policy, would entice businesses to re- The plan would revamp the for- ing fiscal year and would bring the cut, have angered liberal advocates. Some experts say a sales-only ap- main headquartered in the five bor- mula that determines the share of a city’s code in line with that of the proach to income taxes could incen- oughs and lure others from outside. company’s profit that the city can tax. state. Those changes—including tax A tax tipping point? tivize some companies to eliminate Ms. Quinn adds that the measure The current three-factor formula increases for real estate investment using only local sales to calculate facilities in the city. Businesses that would create 27,000 jobs over 10 years. equally weighs a business’s local pay- trusts and some out-of-state credit corporate income taxes “will signifi- sell a significant amount of goods or Opponents of the tax cut contend roll, property and sales. If Albany card banks—have upset members of cantly erode the city’s business in- services in New York,but have few fa- that it’s a giveaway that would have passes the new law,the city tax,which the banking industry, which argue come tax base, with no apparent ben- cilities here, might be better off leav- negligible economic-development currently averages around 4%, would that they are already shouldering 20% efit,” says James Parrott, deputy ing the city, since federal law would benefits, and that the measure is par- be decided by local sales alone. That of the city’s business tax load. director of the Fiscal Policy Institute. then make them exempt from local ticularly puzzling at a time when the could offer big savings to hometown The New York Bankers Associa- He adds that the measure comes with taxes. Microsoft, for example, could city is enveloped in recession. And companies that sell widely to cus- tion has weighed in with a memoran- no mandates for job creation, despite avoid municipal taxes under the banks are angry that they’re being tomers outside the city, such as Col- dum opposing pieces of the city pro- officials’ lofty projections. Bloomberg administration’s proposal asked to foot the bill for the break gate-Palmolive, Pfizer,Time Warner posal. “At a time when the banking Since 2006, when a similar sales- if it moved its small New York City through a series of separate tax hikes. and the mayor’s own Bloomberg LP. industry is suffering through one of only calculation was implemented at operation to another jurisdiction. The proposal has broad appeal to “Right now, the city’s tax scheme its worst economic crises, the draft the state level, businesses have saved But proponents say more compa- many of the city’s largest employers. means that moving jobs out of the legislation would pay for the cost of $286 million, according to state nies would benefit than not, leading “The intention is to remove the city would lower our tax,” says John providing a tax break to non-banks budget officials, who can’t say to increased employment and eco- disincentive for expanding in New Kinney, vice president of state taxes through an increase in taxation on whether jobs increased as a result. nomic activity.“Just about every busi- York City,to make it more attractive, for Time Warner.“It greatly discour- banks and thrifts,” it states. Manhattan-based tax and ac- ness corporation that’s headquar- to make sure that New York City is ages having property and payroll in The city’s package of tax initiatives counting adviser Robert Willens is tered in New York City would competitive and not losing market the city.” does not include a personal income skeptical about the economic devel- probably benefit,” says Mark Levin, share to other states,” says Kathryn To pay for the cut, officials have tax increase on wealthier New York- opment advantages. “It’s hard to an state and local taxes expert affiliat- Wylde, president of the Partnership proposed a suite of other tax-law ers, which was pushed by pro-labor imagine this would be the tipping ed with the New York State Society for New York City, a big-business changes that could generate $167 groups. The city instead proposed to point for a company’s decision to lo- of Certified Public Accountants.

deals and structured finance transac- as] restructuring, bankruptcy and The investment banks involved tions for years, and while the bur- litigation, have not helped cushion in the most new bankruptcy filings Bankruptcy Central geoning bankruptcy business is the drop-off in transactional work,” last year are also based here. Houli- keeping some folks busy, it’s not Mr. DiPietro observed in a 2008 re- han Lokey Inc. served as financial Continued from Page 3 structuring adviser AlixPartners so enough, especially since fees are of- port. Particularly in the GM case, adviser on 23 cases, according to “If this trend continues, we’re going far has received $38.1 million ten adjusted downward by the courts. where the U.S. government will be Deal Pipeline data. Lazard tackled to have to hire more people,” says preparing the automaker for Chap- The ongoing Lehman bank- picking up the tab, expect extreme eight; Moelis & Co., seven; Chanin Vito Genna, clerk of the court. ter 11, and investment bank Ever- ruptcy, for example, has so far rung fee-trimming. Capital Partners, five. “We’ve got people coming in early, core Partners made $24.1 million in up about $55 million in legal fees for Crisis management and turn- leaving late, and some people leav- the months before last Monday’s fil- Lehman counsel Weil Gotshal, Guess who dominates around advice are local strengths, ing well into the night.” ing, according to court records. about $12 million for unsecured the bankruptcy business here is too.Of the 102 bankruptcies filed in New York’s bankruptcy restruc- creditors counsel Milbank Tweed dominated by a few firms. Of the 62 the U.S.last year that exceeded $100 turing complex includes investment Fee-rocious Hadley & McCloy, and about $31 cases last year with debt exceeding million in debt, 60% were handled banks, restructuring firms and crisis but make no mistake:Dismantling million in fees for turnaround advis- $500 million, 32, or more than half, by Manhattan firms, reports Deal managers that handle everything companies will never be as lucrative er Alvarez & Marsal. All of those were handled by just three law firms: Pipeline. Again, the action is con- from financing to spinning the latest as building them, notes Dan DiPi- fees are being reviewed by a court- Manhattan-based Weil Gotshal centrated in the hands of a few: Al- news to the media.The newly mint- etro,client head of the law firm group appointed committee. and Skadden Arps Slate Meagher & varez & Marsal, AlixPartners and ed GM case, for instance, is already at Citi Private Bank. Law firms have “The practice areas that normal- Flom and Chicago-based Kirkland Capstone Advisory Group were paying off for some local firms. Re- relied on high-end private equity ly provide a lift in a downturn, [such & Ellis. steering a third of those cases.

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proach of eliminating their store- Realty offers brokers full commis- fronts—and the retail rents that go sion in exchange for a $99 month- Residential brokers innovate with them. ly fee and transaction fees that are Earlier this year, the venerable based on deal size. The brokerage, Continued from Page 3 Others brokerages, including 143-year-old brokerage relaunched started in 2007, has grown to 250 Brokerage giant Corcoran Century 21 NY Metro, have ex- ‘I’m looking to itself as a franchisor. In return for an brokers. Group also shuttered its Harlem of- panded beyond their residential initial fee of $1,500 and a monthly fice and is encouraging a number of business. It recently established a find niches that fee of $500,brokers these days get to Going whole hog productive brokers companywide to commercial division targeting the use the William B. May brand, re- “we’re profitable because we’re work from home. growing market for office subleases, work, not things ceive back-office support and keep not encumbered with overhead, like “When sales volume drops as while the residential operation fo- 100% of their commissions. But, on traditional firms,” says Paul Purcell, precipitously and average sale prices cuses more on residential rentals. that used to’ the other hand, they are now inde- co-founder of Charles Rutenberg. go down, it affects the bottom line,” pendent and as such responsible for He points out that Pari Passu Real- says Pamela Liebman, chief execu- Riding rentals covering their own expenses, in- ty Corp.also recently adopted a full- tive of Corcoran, which recently “i’m looking to find niches that cluding rent. commission approach. sublet 5,000 square feet of its work—not things that used to “The only way to survive is to be- “The behemoths will weather 50,000-square-foot headquarters at work,” says Century 21 NY Metro and that he has 100 rental and 25 come lean and trim,” says Craig the storm; some of the smaller firms 660 Madison Ave. “We’ve consoli- President Marc Lewis. He notes sales brokers. Lamb, managing partner at will not,”Mr.Purcell says.“We have dated and asked nonproducing bro- that 90% of his revenue is coming William B. May is one of several William B. May. to be around a bit longer to prove our kers to give up their desks.” from brokering residential rentals, companies taking the radical ap- Similarly, Charles Rutenberg model.”
Feud over, Apthorp What do you call a firm that adds more than condos 80 business lawyers in just four months? hit market Owners of Upper GAMECHANGER West Side landmark reach agreement PHILADELPHIA NEW YORK BY THERESA AGOVINO Corporate Corporate Demonstrating what it takes to win in today’s business environment. Charles G. Kopp David E. Bronston Jason M. Shargel Robert E. Fischer after an ugly, public battle over Michael M. Sherman Martha J. Flanders A solid strategy for growth. A strong financial platform. A proven control of the famed Apthorp apart- Asaf Hahami record of strength in adversity and performance under pressure. ment building that almost landed it Commercial Litigation Albert J. Pinzon John V. Donnelly William Rosoff Cozen O’Connor’s full lineup now has 550 lawyers focused on in default, the owners now say Brian P. Flaherty Stuart A. Shorenstein they’ve resolved their differences. John P. Moses high-end, complex litigation and business law matters, including Owners Africa Israel Invest- Lisa Myers Commercial Litigation corporate, real estate, bankruptcy, health and IP—as well as private ments and Mann Realty Associates TamarS.Wise Jennifer F. Beltrami client services. Brian Levine bought the Upper West Side land- Energy and Utilities Jill L. Mandell mark in 2007 for $426 million with Jeffrey J. Norton Kenneth G. Roberts With 23 offices worldwide, Cozen O’Connor is the growing choice a plan to turn it into a luxury con- Richard Rodriguez Government Relations Angelo Savino for some of today’s most discerning clients—and attorneys. dominium, but their relationship Mark L. Alderman James L. Simpson began unraveling as the market for David F. Girard-diCarlo high-end properties softened and Edward J. Hazzouri Intellectual Property Amy Divino For worldwide offices, visit us at cozen.com. units sat unsold. Details of their Private Client Services Michelle J. Dorman agreement weren’t released. A Leonard J. Cooper Aude Gerspacher spokesperson for the Feil Organi- Robert I. Friedman Andrew P. Nemiroff Edward M. Glickman Joshua L. Raskin zation, which will be managing the David R. Glyn Martin G. Raskin property, could not be reached. Adam Grandwetter David B. Sunshine Last year, two lenders threat- Matthew H. Kamens Thomas A. “Tad” Decker, Chief Executive Officer David S. Kovsky Private Client Services ened to throw the project into de- Lester E. Lipschutz Judith E. Siegel-Baum 250 Park Avenue fault if a loan imbalance wasn’t cor- Alexander Sanford Richard J. Duffy Amy Neifeld Shkedy New York, NY 10177 rected and a new business plan Steven G. Winters Herbert B. Fixler developed. Gail Goldfarb 212.509.9400 Real Estate Donald J. Hayde Additionally,Lev Leviev,the bil- Charles B. Law, Jr. Christine R. Deutsch 45 Broadway Atrium, Suite 1600 lionaire Israeli diamond merchant Herman C. Fala Stephanie Lehman who controls Africa Israel, sued Anthony Faranda-Diedrich New York, NY 10006 Maurice Mann, president of Mann Helene S. Jaron Real Estate 212.509.9400 Elizabeth E. Kearney Christian Beltz Realty, to force him into arbitration Bernard Lee William F. Davis even as he tried to remove Mr.Mann Diana C. Liu Kenneth K. Fisher Henry F. Miller Paul J. Proulx as the project’s manager.In court pa- Richard B. Salomon pers, Mr. Leviev alleged that Mr. Shawn Neuman Adam M. Silverman Abby M. Wenzel Mann had “run amok as a manager.” Robert A. Silverman Mr. Mann, he said, “through willful Susan E. Stanier WASHINGTON, DC Government Relations misconduct and/or gross negli- Matthew I. Weinstein James R. Williams Mark L. Alderman gence” failed to effectively manage Thomas P. Witt David F. Girard-diCarlo the leasing, condo conversion and condo sales of the 163-unit building. Tax White Collar Joseph C. Bright Kathryn R. Yingling Mr. Mann eventually agreed to Thomas J. Gallagher be replaced as manager. Cheryl A. Upham WILMINGTON, DE Signs of a thaw have been evi- Joshua C. Weinberger Bankruptcy Arthur A. Zatz Simon Fraser dent as ads for The Apthorp have Barry M. Klayman been cropping up in recent weeks in LOS ANGELES The confidence to proceed. papers such as The New York Times Litigation HARRISBURG Erik L. Jackson Tax and The Wall Street Journal. The Reeve Segal Dan A. Schulder ® apartment building has served as home to many celebrities,including Conan O’Brien, Rosie O’Donnell © 2009 Cozen O’Connor and writer Nora Ephron.

June 8, 2009 | Crain’s New York Business | 9 20090608--A--0010-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/5/2009 12:01 PM Page 1

VIEWPOINT Let banks out of bailout editor in chief Rance Crain publisher, vp Jill R. Kaplan editorial director Greg David ome of the nation’s biggest banks—led by The question now is whether the White House has EDITORIAL New York’s J.P.Morgan Chase and Goldman grown to like the power it wields over private companies. editor Xana Antunes Sachs—are lined up at the Treasury window, Despite its rhetoric—that it doesn’t want to run banks or managing editor Glenn Coleman deputy managing editors Valerie Block, desperate to repay billions of dollars in bailout auto companies—the administration is dictating how much Erik Ipsen funds. Inexplicably, the Obama administration money Chrysler can spend on advertising during contributing editor is dragging its feet on collecting the money. bankruptcy.The president is reportedly promising the Elizabeth MacBride columnist Alair Townsend Take it back, already. mayor of Detroit he won’t allow GM to move its senior reporters Theresa Agovino, headquarters elsewhere. Congress is trying to force both Aaron Elstein, Erik Engquist, Lisa Fickenscher, The many reasons stretch back to last autumn, when the Matthew Flamm, Miriam Kreinin Souccar markets were in a free-fall.Then-Treasury Secretary Henry Chrysler and GM to maintain their clearly excessive dealer reporters Barbara Benson, Amanda Fung, S Daniel Massey, Adrianne Pasquarelli, Paulson (right) devised a networks. Have we Hilary Potkewitz scheme to stabilize the Henry Paulson really forgotten that art director Steven Krupinski financial system by centrally run deputy art directors Carolyn McClain, Daniel Mednick bolstering the balance forced the economies don’t work? staff photographer Buck Ennis sheets of the biggest The government copy desk chief Wendy Zuckerman banks to take copy editor Thaddeus Rutkowski banks with capital from needs the money that research editor Denise Southwood the federal government. the money the big banks want to www.crainsnewyork.com web editor Brian Tracey He forced them all to return. Maybe $100 senior producer Elisabeth Butler Cordova take the money—even billion doesn’t seem producer Kira Bindrim though Chase and like much when EDITORIAL AND ADVERTISING OFFICES bloomberg news Goldman insisted they compared with the 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 neither needed nor wanted it—on the grounds that couple of trillion dollars the federal government is spending advertising: 212.210.0259 to save the economy. But many smaller banks are on Cable craincom nyk allowing some major banks to go it alone would stigmatize Fax 212.210.0499 the rest. increasingly shaky ground, and they will need to be Entire contents ©copyright 2009 Crain Communications Inc. All rights reserved. Since then, the money has become an albatross for many supported or be taken over and their depositors paid off. ®CityBusiness is a registered trademark of MCP banks as the Treasury Department and Congress meddle in Self-styled watchdogs are claiming that the banks are Inc., used under license agreement. their operations. Banks have been told what they can pay reaping some sort of bonanza by repaying the federal money TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. employees, have had to toe the Obama line on mortgage early on favorable terms.Their real interest is in continuing $3.00 a copy, $59.79 one year, $109.79 two years. foreclosures, and have been forced to accept without to dictate policy.That is of no help to taxpayers or the www.crainsnewyork.com complaint billions of dollars in losses on their Chrysler and economy. Healthy banks should be allowed to give back the ADVERTISING AND MARKETING advertising director Trish Henry General Motors debt. bailout money—now. senior account managers Cornelius P. Gore, William E. Squitieri commercial real estate sales manager Cory Marks account executives POLL COMMENTS Jacqueline Iovino, Irene Irvill, Courtney McCombs, Anthony Mowad sales manager, classified print & online John Gallagher sales coordinator, print & online Pay OK, but government has problems Lulé Haznedari sales coordinator Anita Perrino I LIKE THE PRESIDENT very much, but they pay into Social Security? for New York state legislators than company combined! I hope other credit Todd J. Masura 313.446.6097 marketing director Amy Crossman no, he is not underpaid. Nor are —tina gray the U.S. president. Presidents can responders are kidding when they marketing manager Jill H. Bottomley any of those people in Washington. cash in big-time post-presidency, say we should pay elected officials circulation manager Andrea Richardson The real question should be: With THE “PAID ENOUGH to prevent graft” if they so choose. Consider how more in order to stop them from assistant circulation manager the salaries they all make, shouldn’t argument would make more sense much Bill and W. got for that one stealing. Bernard Madoff stole Rosalie Ford afternoon in Canada recently— billions from people, and it was general manager, interactive $125,000 to answer (or not surely not because he was Marc Minardo answer) a few questions. Nice “unfairly” compensated. web developer, interactive work if you can get it. On the Let’s ask an even better Chris O’Donnell other hand, what do state question: Is it fair that every NEW YORK PRODUCTION legislators do that earns them their hardworking American should production and pre-press director pay? Beats the heck out of me. have to pay for the incompetence Michael Corsi —david arnow of corporations like Fannie Mae, advertising production manager Freddie Mac, General Motors, Suzanne Fleischman Wies SINCE PRESIDENT OBAMA has put a Chrysler and the like? PUBLISHED BY CRAIN COMMUNICATIONS INC. cap on the corporate executives of Let the companies fail, go into chairman Keith E. Crain the world, he should place the bankruptcy and be bought up by president Rance Crain same cap on every federal entrepreneurs who will make secretary Merrilee Crain ONE WAY TO SAVE: government official. After all, they them successful. It is beyond me treasurer Mary Kay Crain President Barack Obama are running a company—United that we are bailing out and executive vp, operations William Morrow should place a cap on senior vp, group publisher Gloria Scoby government salaries. States Government Inc.—at much rewarding failure. group vp, technology, circulation,

bloomberg news greater losses than every public —timothy dowd manufacturing Robert C. Adams vice president/production & manufacturing David Kamis chief information officer Paul Dalpiaz WHAT’S COMING UP IN CRAIN’S? corporate circulation director Patrick Sheposh Health Crain’s City Facts Small Real Small founder G.D. Crain Jr. (1885-1973) care Fortunate double business estate business chairman Mrs. G.D. Crain Jr. (1911-1996) report 100 issue report report report June 15 June 22 June 29 July 13 July 27 August 10

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trast, state legislators, who write the laws governing both state and local pensions, endear themselves to public-employee unions by regu- larly sweetening pensions even fur- ther. Unions negotiate all they can at city bargaining tables, then run to Albany to get more in the form of enhancements. The principal reforms in the governor’s bill regarding the city’s teachers and other nonuniformed workers would be requiring them to NOT EVERYONE contribute 3% of their pay each year of employment rather than just the HATES first 10, and raising the minimum retirement age to 62 from 55. Na- WAKING UP tionally, most public and private employees pay considerably more, IN THE and it is rare for people to retire in their 50s. MORNING. Uniformed workers—police,fire, corrections and sanitation—would be paid full benefits at 25 years of service instead of at 20, with a min- imum retirement age of 50. Able- john h.john howard bodied people in their 40s would no longer be able to collect city retire- ment checks. Given the political clout of uni- Drawing the line formed workers, one area of abuse wouldn’t change: inclusion of over- time in the wage base.Police officers and firefighters contemplating re- on public pensions tirement grab as much overtime as Crain’s New York Business proudly they can in their final years, inflat- our 401(k) or ira portfolio has probably taken a ing their wage base to the point that presents New York City’s Best Places some receive pensions—for life—as big hit in this crisis, complicating your retirement large as their former paychecks. To Work 2009. Nominations are open planning. But prepare to pay more to support re- Despite the moderate reforms he tired New York state and city employees. Their proposes, Mr. Paterson faces an up- for this honor, now in its second year of pensions are constitutionally protected, and they hill battle. Because changes would recognizing outstanding employers in apply only to workers hired after the enjoyY generous defined-benefit plans. When the state and city bill passes,savings would be small in the five boroughs. Companies will be pension funds sustain losses, taxpayers have to up their ante. the early years—so small that law- makers discount them entirely. profiled in Crain’s New York Business State Comptroller with provisions assum- They ignore that fact that pension and honored at a fall 2009 event. Thomas DiNapoli re- ing that a host of illness- costs will be larger, and even more cently announced that es are work-related. Re- unfair and unaffordable, when the the state pension fund form is long overdue, next fiscal meltdown occurs. Does your company allow you to: dropped 26% in the last and Gov. David Pater- Mr. Paterson has yet to find fiscal year,$45 billion in son and Mayor Michael sponsors for his legislation. Two assets. The city’s funds Bloomberg are propos- New York City lawmakers—Sen. • Work with a stellar group of people? probably have seen sim- ing an overhaul. Diane Savino and Assemblyman ilar declines. As executives who Peter Abbate—chair the relevant • Do what you enjoy? Our public pension must prepare balanced committees,and both are in thrall to • Explore new opportunities for growth? plans are far more gen- budgets, Messrs. Pater- municipal unions. erous than those cov- ALAIR son and Bloomberg are We need to remind these elected • Follow your own path? ering most private-sec- TOWNSEND appropriately concerned officials just whom they work for tor employees. Public about ballooning pen- and who pays the bills.And we need workers can retire much sion costs, which this to let them know that public em- younger, after having made few year amount to $1.1 billion and ployees make up only a sliver of that contributions to their funds, and $6.6 billion, respectively. By con- group. Tell us why your job is so great and nominate your company as one of

CRAIN’S ONLINE POLL New York City’s Best Places to Work. Do you think President Obama’s $400,000 salary is too low? www.bestplacestoworknyc.com 335 votes Date of poll: June 2

No. The power Yes. When and prestige of compared with the presidency is what chief much more executives receive important than .57% 43%. at large American any salary Mr. corporations, Mr. Obama receives. Obama is certainly Partner: undercompensated.

For readers’ comments, see Page 10. bloomberg news

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unemployment benefits.The bill would deny benefits only if universities document that adjuncts STIRRING THE POT The president THE INSIDER have a “reasonable assurance” of PRESIDENT BARACK OBAMA’S nomination last week of northern New York Rep. being rehired. John McHugh as Secretary of the Army was blasted as a political maneuver SUNY by Erik Engquist and Daniel Massey It would also affect and by the National Republican Congressional Committee, but it also creates many private colleges; CUNY dangers for Democrats. estimates the measure would cost it Republicans fear the loss of Mr. McHugh’s congressional seat, one of just $98 million a year. But the three the GOP has left in New York. By two metrics, the seat is safe—Mr. Professional Staff Congress says McHugh won by 50,000 votes in 2008, and the 23rd district has 46,000 Bloomberg canvassers hit streets that projection assumes all adjuncts more registered Republicans than Democrats. But 52% of voters there would receive benefits, and in fact backed Mr. Obama for president, and the party has been losing special ayor Michael Bloomberg’s re-election campaign has the cost will be negligible because elections in districts once considered safely Republican, including one this begun extensive voter many have other jobs. spring near Albany. outreach a whopping five The peril for Democrats lies in the risk of losing a key state Senate seat if, M GOP targets for example, Sen. David Valesky or Sen. Darrel Aubertine replaces Mr. months before the election. Paid McHugh. Winning that congressional seat would merely pad the Democrats’ and volunteer canvassers, traveling DiNapoli large majority in Washington, while losing either Mr. Valesky’s or Mr. in pairs, are going door-to-door republicans don’t yet have a Aubertine’s seat could cost the Democrats their precious state asking voters what issues are candidate to take on state Senate majority of 32 to 30. Comptroller Thomas DiNapoli in However, if Republican state Sen. Joseph Griffo wins most important to them the race to succeed Mr. McHugh and Democrats and whether they will 2010, but they do have a game plan. One issue they will highlight subsequently take Mr. Griffo’s seat, it would cripple the vote for the mayor in is the performance of the state Senate Republicans’ dream of recapturing the chamber November. Responses pension fund, which has fallen 26% in 2010. The Democrats could then redistrict the will be used to in the past 12 months. Matthew GOP into oblivion—eliminating Mr. Walter, executive director of the McHugh’s district in the process. customize mailings state Republican Party, says that So far, only Assemblywoman Dede and phone calls. other criticisms will be raised but Scozzafava appears likely to seek Mr. Mr. Bloomberg that the GOP “can’t give away the McHugh’s seat, although at least 10 spent about $10 million playbook this early.” other Republicans have expressed Mr. DiNapoli has taken steps to interest. in 2005 to establish a insulate himself from attacks— If the U.S. Senate confirms Mr. McHugh voter list, which some notably by blasting the state quickly for the Army post, the governor will political consultants budget, a $131.8 billion spending call a special election in which party considered overkill. plan that did not sit well with the insiders choose the nominees. But if the public. His criticism of lawmakers election is held in the fall, it would be This year, he’s bloomberg news irked Gov. David Paterson and put a preceded by a regular primary. chill in their relationship.That

outspending challenger William Adjuncts seek aid should help Mr. DiNapoli’s re- bloomberg news Thompson, the city comptroller, by election chances. If the governor’s about 10-to-1. cuny and its faculty union are approval ratings remain low next by making air travel more efficient. A spokeswoman for the fighting over a bill to help adjunct year, the GOP will try to associate Paterson pinching The system has broad support in Bloomberg campaign says it doesn’t professors—who go without pay Mr. Paterson with down-ballot pennies, aide says Congress, but lawmakers can’t discuss internal operations. between semesters—claim Democrats. agree on whether user fees should gov. david paterson is not known help fund it. for running a tight ship, but top Rep. Jerrold Nadler, the senior aide Larry Schwartz says managers at Northeast Democrat on the House all levels of the administration are Transportation Committee, says a being pressed to reduce expendi- bill providing $13.4 billion for tures long taken for granted. NextGen is a priority for him. “[The governor] wants to see state government run more like a business and less like a Green lights bureaucracy,” Mr. Schwartz told a for Park Avenue Citizens Budget Commission forum last week. the city Department of For example, bills are to be paid Transportation is about to approve electronically to save on postage. $14.5 million for Metro-North to And workers will stop getting install long-awaited pedestrian standalone printers but instead signals on Park Avenue.The 10 share networked machines. blocks north of Grand Central There is evidence that the Terminal lack signals because of a savings are adding up: When state 47-acre train yard directly under revenues fell by $239 million more the street. than anticipated last month, the The city and the MTA agreed budget gap was just $10 million on a solution two years ago and said because expenditures had also fallen. Holding pattern for NextGen gov. david paterson and New Jersey Gov. Jon Corzine have joined the coalition supporting NextGen, istockphoto which would replace the nation’s a construction contract would be 1950s-era air traffic control system. signed by September 2008, but But backers insist that NextGen only the design work has been needs a political champion. done. A Metro-North Costing $15 billion to spokeswoman says a contract will $22 billion over 15 years, NextGen be put out to bid as soon as the would provide an economic boost railroad gets the funds.
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12 | Crain’s New York Business | June 8, 2009 20090608--A--0013-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/4/2009 6:59 PM Page 1

REAL ESTATE DEALS

rents five floors of the property, be- Gussied-up 515 Madison draws crowd tween Varick Street and St. Johns Lane. The lease expires in 2013. Administrative offices at 75 Var- colleague Beth Chase, represented er will open for business in July. ick St. will move into the new space, Three deals follow Mr. Damone. The space could have —adrianne pasquarelli says David Warren, president of the $5 million makeover fetched as much as $125 a square school. The asking rent for the deal foot a year ago,Mr.Barreto explains; was about $38 a square foot. resh off a $5 million now, landlords are simply eager to Life’s a Beach The school was represented by makeover that includes avoid vacancies. Broome Street in for Art Institute Colliers ABR brokers Jonathan an expansion and reno- SoHo has about nine empty stores, Schindler and Tim Kucha. Fischer vation of its lobby, 515 including spaces vacated by Broad- the art institute of New York & Co., which represents the insti- Madison Ave. lured two way Panhandler and Waterworks. HIGH NOTE: Rudy’s swings into 461 Broome. City inked a deal for 12,500 square tute’s parent, hired Colliers. Fnew tenants, while an existing one Rudy Pensa chose the new out- feet at 11 Beach St., bringing its total Leonard Kahn, who manages expanded its footprint. The new post—a former art gallery—be- in the building to 75,000 square property owner Varick Associates, deals total nearly 34,000 square feet. cause of its proximity to the recent- Fame Annex, located around the feet. The two-year school will take represented the building. In the biggest of the transactions, ly opened Rock and Roll Hall of corner on Mercer Street.The retail- over the third floor in July.It already —theresa agovino Memorial Sloan-Kettering Cancer Center leased 22,300 square feet for 15 years for a physical rehabilitation center.A September move is planned. The asking rent for the deal was $65 a square foot. Mark Weiss, a broker at Newmark Knight Frank, It’s not just wrong to discriminate against represented the hospital. Kreab & Gavin Anderson World- wide, a communications company, lesbian, gay, bisexual and transgender inked a 10-year deal for about 9,100 square feet. The asking rent for the — deal was $65 a square foot.Cushman employees in New York City it’s illegal. & Wakefield broker Bob Baraf rep- resented Kreab & Gavin Anderson. The company,formed earlier this year via a merger, plans to move by Supporting LGBT employees is good early next month. Neither firm’s ex- isting space was suitable for the com- bined entity, says Richard Wolff, re- for the individual, the community gional managing partner of the company. However, Kreab did have 7,000 square feet at 515 Madison. and your business. “We were familiar with the building, and it is well-managed,” says Mr. Wolff. Meanwhile, Hamilton Invest- ment Funds leased 1,900 square feet for five years. A July move is planned, and the asking rent for the deal was $67 a square foot.The pri- vate equity firm is currently located at 375 Park Ave. Hamilton was drawn to the build- ing in part because of the landlord’s offer to build out the space, says Corey Horowitz,a Newmark Knight Frank broker who represented the tenant with his colleague Mr. Weiss. The building is owned by New- mark Knight Frank Chairman Jef- frey Gural, along with some part- ners. Mr. Gural’s son Eric, a Newmark broker, represented the owners in the transactions. —theresa agovino

he Empire State Pride Agenda Foundation presents the second edition of Rudy’s picks up Pride in My Workplace: Best Practices Guide for New York State Businesses beat on Broome Tto Support Lesbian, Gay, Bisexual and Transgender Employees. rudy’s music and guitar shop is Debuting in June 2009, this guide gives companies the information they playing a new song in SoHo. The need about LGBT workplace issues and the law in New York – including venerable retailer, which has been in six best practices for supporting LGBT employees and success stories from the same location on West 48th Polo Ralph Lauren, JPMorganChase, Kenneth Cole, McDermott Will & Emery Street for 31 years, recently signed a LLP, The New York Times, Eastman Kodak, Mercer, Corcoran and Time Warner. 10-year deal for its second location. The new store will occupy a This second edition includes information on relationship recognition, 461 2,400-square-foot storefront at transgender non-discrimination and engaging straight allies in recognition Broome St., between Greene and Mercer streets. The asking rent for of the evolging legal, legislative and political landscape and its impact the location,which also has a 2,000- on LGBT people. square-foot storage basement and a 500-square-foot mezzanine, was about $100 a square foot. “The owner of the space [Thomas Damone Jr.] wanted to get Download the guide at Pride in My Workplace is a program of the Empire State Pride Agenda Foundation. it rented sooner rather than later,” For more information, visit www.prideagenda.org or call 212-627-0305. says David Barreto, the Cast Iron Real Estate broker who, along with

June 8, 2009 | Crain’s New York Business | 13 20090608--A--0014-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/4/2009 8:12 PM Page 1

NEIGHBORHOOD JOURNAL

strip—10 blocks of 13th Avenue Drama down on the farm in Queens starting at 45th Street—encounter no fewer than 14 banks. And more are coming. Valley intentions. “Given the history of the site, it just National Bank expects to open its Developer’s latest A year into its second two-year raises red flags.” first location there by July. Bank of move sparks lease on an original building on the The story of the Klein Farm, America hopes to unveil its entry in Klein Farm property,the Apple Tree which once covered 200 acres, dates six to eight months. simmering fury Day Care and Preschool Center re- back to the 1800s.The family oper- “The decision to open was based ceived a notice a few weeks ago giv- ated the land as a farm well into the on customer demand,” says a over Klein Farm ing it a June 30 deadline to vacate. 1990s and even maintained a road- spokeswoman for BofA, which over simple eviction no- The eviction order came as a to- side vegetable stand that locals still the past four years has doubled its tice has resurrected a tal surprise to Apple Tree and set off LOCALS miss Klein Farm’s produce stand. miss. locations in Brooklyn, to 20. battle over a two-acre alarms in the surrounding Fresh In 2003, the Kleins sold the re- But some longtime neighbor- plot of farmland in Meadows community. maining plot,which is between 73rd hood businesses complain that the Queens and stirred up “If you’ve got a paying tenant, Councilman Tony Avella, whose and Peck avenues, for $4.3 million. expansion is pricing them out of their Alatent fears about a local developer’s why would you evict?” asks City district includes Fresh Meadows. Several old farm structures were in- retail spaces. Rents on 13th Avenue cluded. currently range from $75 to $175 a Locals became concerned when square foot, according to Tim King, they discovered that the buyer, Au- principal at CPEX Real Estate. drey Realty, is affiliated with Tom- Though Cheskel Goldstein, my Huang, a Flushing real estate owner of Lane Cards and Gift magnate with a long record of build- Shop, had three years left on his ing violations. Local politicians and lease at 4701 13th Ave., he chose to residents have been wary of Mr. take his landlord’s offer of a pay- Huang for more than a decade, ment to move. He would not dis- when his development company al- close the exact sum. lowed an oil leak to contaminate the “Banks can pay more rent,” says landmark RKO Keith’s Theatre. Mr. Goldstein, who moved to a “Every property this guy touches smaller space two blocks down the becomes a problem,” Mr. Avella avenue. Lane’s former location, says. “There’s a fear that he will do something that’s not appropriate, or demolish it.” After acquiring the farm plot, Audrey Realty quickly submitted proposals to knock down the struc- tures and build 22 two-family homes. The local Community Board op- posed the project, and Audrey’s plan to downscale to 18 homes failed to pass muster with the zoning board. Because the land is part of a special zoning district,any proposal to build housing would also have to go through the city’s lengthy Uniform Land Use Review Procedure. Audrey Realty executives could not be reached for comment. Community fears subsided when the day care center arrived and the firm made no further development moves,but neighbors are now galva- BIG BUCKS: Despite modest median nized again. incomes, the district has billions in deposits. “There have always been ru- mors,” says Marie Adam-Ovide, district manager of Community which the business occupied for Board 8.“I realize that at some point more than two decades, will become the property will probably be sold, a Bank of America branch. but I don’t think it’s something [lo- Many residents and business cal residents] will be looking for- owners question the need for more ward to.” branches in Borough Park. The The best hope could be the neighborhood’s median household Queens County Farm Museum, income is $38,023,according to New which operates a 47-acre farm in York University’s Furman Center for nearby Floral Park. The organiza- Real Estate and Urban Policy. tion has offered to restore the build- “There are affluent people and ings, resume farming and set up an- poor people in the area,”says Brook- other vegetable stand—if the city lyn Community Board 12 District will purchase the property. Manager Wolf Sender. To date, though, City Hall hasn’t Regardless of household in- indicated it’s ready to buy the farm. come, there’s a lot of cash. —hilary potkewitz In fact, according to the Federal Deposit Insurance Corp., as of June 2008, Borough Park banks had de- Borough Park posits of $2.4 billion. That’s one of takes it to the bank the highest totals in Brooklyn, and not far behind such affluent en- the bank branch-building boom is claves as Brooklyn Heights, which long over in most parts of the city— had $2.9 billion. but not in Borough Park, Brooklyn, “Borough Park has hardworking one of New York’s largest Orthodox businesspeople everywhere,” Mr. Jewish communities. King says. “They need a place to Just as people in Manhattan find store their funds once the mattress a Starbucks almost every few steps, gets lumpy.” so those on Borough Park’s main —amanda fung

14 | Crain’s New York Business | June 8, 2009 Project4 6/4/09 1:23 PM Page 1 )''0 I

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20090608--A--0019-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/4/2009 6:51 PM Page 1

FUTURE OF NEW YORK CITY

HELP FROM MIKE: The Bloomberg administration has rolled out a series of steps to help city small businesses. Go online for a look at the new programs SMALL and who they are targeting. BUSINESS ➚➚ ON THE WEB @ FUTURENYC.CRAINSNEWYORK.COM Recession for record books Damage to small firms is severe; survival strategies blunt carnage

BY ROBERT HORDT DENNIS BELFIORE HAS WEATHERED some difficult periods in the 10 years he has owned an architectural firm in New York. In 2001, with the economy already in a recession, he was forced to relocate operations from lower Manhattan for four months after the Sept. 11 terrorist attacks. With the help of insurance and government loans and grants, the firm rebounded. Now Mr. Belfiore faces another challenge as a downturn wreaks havoc on the real estate and construction industries that he depends on for work. His business is off by more than 50%, and Mr. Belfiore is looking to borrow about $125,000 to stay afloat. Attrition has reduced his staff to four from six, and he doesn’t want to lay off anyone.

It’s a familiar story. With con- Belfiore, believe this recession has sumer confidence shaken and busi- been particularly painful. While ness activity slowing to a crawl, the past downturns seemed restricted to recession has forced small business one sector, this one is far-reaching. owners to make gut-wrenching de- “There was [always] a buffer for cisions. Some have given up and the rest of the economy,”Mr.Belfiore closed their doors. Others have says. “I don’t see that this time.” BARELY AFLOAT: been forced to lay off workers, cut Just to keep his salaries and bonuses, or scale back A merciless swath architectural firm or defer expansion plans. Many this recession has cut a merci- going, Dennis must borrow just to meet payroll less swath through the U.S. econo- Belfiore needs to borrow about and other operating expenses until my.Three of the nation’s biggest in- $125,000. better times arrive. dustries—housing, finance and That’s bad news for New York, automobile manufacturing—have neff david given the significant size of the sec- been crippled, and the impact is felt keeping track 42 years ago. small businesses selling luxury Though New York City entered tor. The city is home to more than nationwide. “I think it’s the worst I’ve ever goods. The economy plunged dur- the recession nine months after 200,000 small businesses,which ac- The Federal Reserve reports seen,” says Edward Rogoff, chair- ing the fourth quarter, devastating most of the rest of the nation, con- count for 50% of its private-sector that 86% of industries have cut back man of the Zicklin School of Man- the holiday selling season, when ditions deteriorated quickly. The workforce. on production,the highest percent- agement at Baruch College.The re- most merchants make the lion’s city lost more than 100,000 jobs in Many owners, including Mr. age since the regulatory body began cession has been especially hard on share of their annual earnings. See OWNERS on Page 21

FUTURE OF NYC SMALL BUSINESSES Banks, borrowers dig in over credit crunch CITY COUNCIL SPEAKER Christine Quinn keynotes the June 18 confer- him the new no-fee Small Business highest percentage since the 1980- their credit cards—which many ence at the Crowne Plaza. Go to Finger-pointing Administration loan he wants, Mr. 82 recession. Making things worse, small firms use to finance opera- FUTURENYC.CRAINSNEWYORK.COM misses the point; Pozniak expects to save $20,000 a about two-thirds said rates rose on tions—while 40% reported de- month in interest. creased credit limits. it’s all about standards “If we don’t get it, I don’t think we will pursue it any- DRYING UP Supply or demand problem? BY DANIEL MACHT more,” he says. “It’s a tremen- SBA-backed loan approvals in NYC, by fiscal year. yet banks claim that they have dous amount of work to be re- Dollar totals No. of loans plenty of money to lend. Sixty he’s been turned down for a jected.” 2004 $223,757,391 1,975 percent of loan officers told the commercial loan seven times in the Talk to many of New York 2005 $325,957,000 2,785 Federal Reserve recently that past six months, but Jerry Pozniak City’s small business owners,and 2006 $305,220,800 3,382 loan volume is off because of lack is not throwing in the towel just they echo Mr. Pozniak’s frustra- 2007 $358,947,000 4,011 of demand. yet. tion. And 14% of 1,794 owners 2008 $294,353,688 2,428 “We continue to lend, and we He thinks he has finally found a around the country surveyed by First 9 months of fiscal 2009 (10/01-5/31) follow disciplined and sound lender to refinance $1.5 million in the National Federation of Inde- $94,908,885 369 lending practices,” says a spokes- short-term loans for his four dry- pendent Business reported that Since stimulus (3/16-5/29) person for J.P. Morgan Chase & cleaner locations. If the Citizens loans were harder to get in April $34,471,485 139 Co. Citigroup and Bank of Bank branch in Long Island gives than they were in March—the Includes 7(a) & 504 loan approvals in New York City. Source: SBA See BOTH SIDES on Page 20 Christine Quinn

June 8, 2009 | Crain’s New York Business | 19 20090608--A--0020-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/4/2009 6:52 PM Page 1

FUTURE OF NEW YORK CITY SMALL BUSINESS Rescuing health care coverage

That’s about what Ms. Watts Companies take pays for the people who stitch the advantage of state’s trendy fedoras she sells to Barneys and Bergdorf Goodman. Her non- and insurers’ more profit, state-subsidized plan, affordable options Brooklyn HealthWorks, offered through the Brooklyn Chamber of Commerce,is adding about 25 com- BY GALE SCOTT panies a month. And very few of its current roster of 419 businesses have when hat designer Tracy Watts dropped out, according to Dean moved her four-person manufac- Mohs, the plan’s executive director. turing studio to Brooklyn from Manhattan last year, one of the first More members things she did was buy a health plan participation in state-subsidized for her three employees. Healthy NY, available to business- “I’m from Canada,” Ms. Watts es statewide, has also increased. TOP THAT: Hat designer Tracy Watts says. As someone accustomed to na- Small-group membership has felt that offering tional health care, she grown to nearly coverage was her believes that insuring 52,000 workers moral duty. her workers is a moral ‘The picture this year from issue. about 49,500 en- Health reformers isn’t great, rollees last year,

love to hear such sto- according to the buck ennis ries. An estimated but it’s state’s Insurance 42% of uninsured Department. Pass. “We’ve had one or two people couraged by the rapid growth of a surance; workers fund the savings New Yorkers work stabilizing And enroll- drop coverage, but we also have new plan they rolled out a year ago that account. for small businesses ment has climbed business expansion.” HealthPass cuts cost by limiting its network of At Aetna, consumer-driven that don’t provide at least’ steadily at New now offers 33 plans covering about doctors and hospitals. Regional plans account for 20% of new sales coverage, according York HealthPass, 11,000 workers and plans to contin- Sales Manager Will Jones says Aet- and 45% of total sales, as existing to a United Hospital a nonprofit that ue growing, he says. na is signing up between 3,000 and customers offer them as an option, Fund study. Adding the New York The picture for commercial 5,000 enrollees a month in the New Mr. Jones says. Such plans have a their dependents in- Business Group plans is much more difficult to as- York region, mostly people who penetration rate of 11% nationally creases the number of small busi- on Health started in 1999 to help sess.Commercial insurers decline to work for small businesses, though and of 18% in New York. ness-related uninsured to 84%. small companies find coverage for give specific numbers, but both he will not give exact figures. Small businesses could be under Though the recession makes their workers. More than 3,000 UnitedHealthcare and Aetna con- less pressure if President Barack providing coverage even more diffi- small businesses now get their in- cede that they are losing member- Sudden surge Obama’s national health insurance cult, many small companies are try- surance through the organization, ship as a result of downsizing. insurers report a sudden surge in proposal passes this year, though ing to cut costs rather than drop cov- compared with about 2,300 two “You’ll see a small-group plan for the sale of less expensive, “con- few appear to be counting on that. erage. Bargain-hunting owners are years ago. 10 employees drop to seven,” says sumer-driven health plans,’’ which “Some people think national finding affordable options that can “The picture isn’t great, but it is William Golden, chief executive of carry high deductibles and are coverage is looming,’’ Mr. Ashton halve the monthly cost per employ- stabilizing at least,”says Vince Ash- UnitedHealthcare of New York. paired with health savings accounts. say. “But to sit around and wait ee, to about $200. ton, executive director of Health- Aetna executives say they are en- Employers generally pay for the in- would be foolhardy.”

the $787 billion stimulus act raised the federal guarantee for SBA loan Both sides point fingers in credit crunch defaults to 90% and eliminated the loans’ costly fees. Continued from Page 19 score of 650,according to Robert H. New York Business Development flow analysis and a sound business Though overall SBA lending in America make the same assertion, Moses, a veteran accountant and Corp. are better options for other plan, says Chief Executive Patrick New York fell 80% for the six pointing to individual initiatives chairman of the small business out- types of borrowing. MacKrell. They also lend to start- months that ended in April, the geared to help small businesses. reach committee at the New York NYBDC, which was estab- ups, something that bigger banks number of loans issued nationally is Both sides are partly right, ac- State Society of CPAs. are reluctant to do even in the up 33% since the stimulus’ provi- cording to accountants and busi- flushest times. sions were put in place in March,ac- ness advocates, who often serve as Talk, but no action Some advisers A year ago, J.P. Morgan Chase cording to an agency spokesman. middlemen between lenders and but mr. moses, who is also a vol- was the top SBA lender in New Some accountants say that, if borrowers. unteer counselor with NY Score, tell clients not York,providing $66 million to 1,322 possible, small firms should avoid Banks have indeed tightened says banks have recently told some companies that traditionally could taking on debt at the moment. lending standards and made getting of his clients from the program to borrow and not get other types of financing. For the past year, Mr. Waldman loans more costly.At the same time, that they need a FICO score of NYBDC now occupies the No. 2 has been advising clients to reduce fewer businesses want to take on 720. to stay liquid spot on that lenders’ list, up from expenses, retain easy access to cash more risk. The recession has deci- “I find that the smaller banks No. 18, making 27 loans for $10.54 and stay in touch with their bank. mated sales, weakened balance will sit down and talk with you if million from October through “You want [banks] to be on your sheets and made projecting cash you are local, but that doesn’t mean April. team,” he says. flow similar to reading tea leaves. they’re going to give you a loan,” he Some entrepreneurs agree. “The banks say,‘Yeah we’re lend- says. lished in 1955 in response to a re- Stimulus solutions Nicole Alfaro, who in May start- ing,’ ” says Lawrence J. Waldman, a Many advocates, including cession, is funded by 160 New York “it’s a sign of the times that peo- ed a Brooklyn clothing company partner with accounting firm Holtz Catalina Castaño, director of the banks and is in a good position to ple come to us,” Mr. MacKrell says. called The CANY Project, says she Rubenstein Reminick. “The rest of Brooklyn Small Business Develop- take advantage of new SBA lending “The credit boom was like musical is afraid to take out a bank loan in the sentence,is ‘if you are a very good ment Center, say that large com- initiatives. chairs, but they didn’t just take one this economy. Instead, she and her credit risk.’ ” mercial banks remain a good choice NYBDC loan officers eschew chair—they took all of them.” partner are using their savings to Before the credit crunch, bor- for financing real estate but that credit scores and prefer traditional The NYBDC’s lending activity fund operations and will grow the rowers could get a loan with a FICO credit unions, microlenders and the underwriting standards like cash- could increase even more, because business slowly.

20 | Crain’s New York Business | June 8, 2009 20090608--A--0021-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/4/2009 6:53 PM Page 1

FUTURE OF NEW YORK CITY SMALL BUSINESS Owners devise novel survival strategies

Continued from Page 19 $15 million-a-year company, which a dedicated Web site and through additional business-development the eight months through April, is based in the garment district, are specialty boutiques. expert and launched a campaign to when the unemployment rate was down 25% as the result of the sharp “This will take us in a complete- bring in accounts. The approach 8.0%, compared with 4.8% a year decline in the retail apparel busi- ly new direction,’’ Mr. Pedell says. paid off in April, when Halo Group earlier. Most economists believe job ness. won two new clients. losses in the city will continue to ac- At the same time, Mr. Pedell is Investing in growth At the same time, however, the cumulate into mid-2010 and will trying to diversify and has started a linda passante, co-founder and agency, which has 30 employees, reach 250,000 or more, even if the fashion T-shirt division. Unlike the chief executive of the Halo Group, a scuttled plans to double the size of economy begins to rebound. A re- company’s main business of provid- marketing agency that specializes in its 7,000-square-foot office in port from investment bank UBS ing fabric to designers and private- brand development, is investing Manhattan. MOVING ON: More than 1,300 says unemployment here could label manufacturers, the Emperial strategically. “That’s not an area we want to businesses in the climb to 10.5%, a rate not seen since Nation T-shirt unit is developing its Aware that the 15-year-old firm invest in,’’ Ms. Passante says. “That region closed the mid-1970s. own styles and making the finished could lose clients during the down- would have created more overhead last year. I Last year, 1,320 businesses in the product.The shirts are being sold on turn, Ms. Passante recently hired an for us.” buck ennis region that includes New York City filed for bankruptcy, a 55% increase from 2007. Even that understates the number that have been sidelined by the recession,because many own- ers just lock up and move on without bothering with bankruptcy court. “I’m out every day, and I notice the number of vacant storefronts,” says Robert Walsh,commissioner of the city’s Department of Small Business Services.“It’s the most vis- ible sign of businesses struggling to Bank of America is committed make it.” Other reminders of the hard times are everywhere. According to to U.S. businesses. the New York Restaurant Associa- tion, sales are off 10% to 25% at the city’s restaurants—most of them in- dependently owned small business- AGM Container Artco Group Barcelona Moresco es. Even many well-known, upscale Controls, Inc. International, Inc. Motorcoach, LLC Distributing Company eateries have scaled back pricing to Tucson, AZ White Plains, NY Mesquite, NV Petaluma, CA attract customers. $1,444,000 $25,000,000 $6,300,000 $2,650,000 Indeed, there has been a shift Commercial Real Estate Asset-Based Loan Commercial Real Line of Credit & throughout the city as businesses of & Interest Rate Swap Estate Construction Term Loan all kinds adjust from an environ- ment that touted luxury at all costs to one in which they must promote Sole Lender Agent Sole Lender Sole Lender discounts and deals to survive. Small businesses that wouldn’t have March 2009 January 2009 March 2009 March 2009 considered cutting prices a few years ago are doing so just to main- tain sales. Panduit Corp. Phoenix Public Broadcasting Security Alarm Financing Tinley Park, IL Manufacturing, Inc. Service Enterprises, L.P. Going for volume Enfield, CT Arlington, VA San Ramon, CA david schnurman chose to lower prices at 10-year-old Lawline.com, $30,000,000 $3,000,000 $15,000,000 $25,000,000 Revolving Credit Facility Acquisition Financing Line of Credit Revolving Credit which offers lawyers online classes Facility to satisfy their continuing education requirements, after it became clear that thousands of attorneys were Sole Lender Lead Bank Sole Lender Agent losing their jobs. He gambled that his Manhat- January 2009 January 2009 February 2009 April 2009 tan-based operation could keep an- nual revenue at about $5 million by increasing volume, even if the class- 1 2 es were bought at a discount—in #1 largest U.S. commercial bank #1 in syndicated loans to middle-market companies 1 3 some cases up to 50% less. #1 market position in all core businesses #1 lead arranger of asset-based loans So far, Mr. Schnurman says, the strategy is working. Financial lending is a powerful catalyst — enabling mid-sized companies to generate valuable ideas, He has cut his marketing budget goods, services and jobs that are critical to economic recovery. In the first three months of 2009, by 25% and is investing less in on- our newly combined company made more than $70.9 billion in commercial loans, bringing our line infrastructure and new-course outstanding commitments to more than $924 billion.4 development, but hasn’t had to fire Broaden your access to intellectual and financial capital with Bank of America and Merrill Lynch. any of his 15 employees. Contact us at 1.866.708.3163. “I’d rather hunker down, lower my prices and spend less money— and not lay people off,”the entrepre- neur says. Many other small business own- ers have seen no alternative to par- ing their payrolls,though that’s only one part of their plan for dealing with the slump. Bradley Pedell, owner of fabric wholesaler Bradlee International, 1 Bank of America proprietary research 2 Security Data Corporation 3 As of March 31, 2009, Thomson Reuters 4 Total commercial committed credit as of March 31, 2009 has reduced his staff to 15 from 22, Bank of America, N.A. Member FDIC. Equal Housing Lender . Certain activities and services referred to herein are provided by Banc of America Securities LLC and/or Merrill Lynch, extracted a 20% rent reduction from Pierce, Fenner & Smith Incorporated, members FINRA/SIPC, and other affiliates of Bank of America Corporation. ©2009 Bank of America Corporation. his landlord and negotiated better terms with suppliers. Sales at the

June 8, 2009 | Crain’s New York Business | 21 20090608--A--0022,0023-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/4/2009 8:13 PM Page 1

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NY Area’s Largest Management Consultants Ranked by number of area consultants

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Specialty breakdown (% of each)

General consulting Compensation Marketing Production/distributionSystems/EDP Management trainingOther

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Most Top Verdicts of last year? McKool Smith

June 8, 2009 | Crain’s New York Business | 23 nb23p24-26cls.qxp 6/4/09 1:47 PM Page 24

INVESTMENT EXECUTIVE RECRUITER OPPORTUNITY REAL ESTATE LOOKING FOR EXCITEMENT BROOKLYN POSITION AVAILABLE THIS SUMMER? COMMERCIAL Partnership shares available in world-class thoroughbred horses. 7th Ave. & 64th St.-BrooklynBrooklyn 2-year-old colts purchased at March 2009 Ocala (Florida) Breeders Sale. Horses will be New Listing racing in New York — at Belmont and Saratoga. A Unique Opportunity Call Paul Braus at Fast Furlong Stable (914) 925-3596 17,500 SF Office Avail Sept. 09 Or e-mail Paul at • Move-in Condition • 24/7 Access [email protected] Call Andy Kohen - (718) 258-2782 Director of Business Development: Oldcastle Glass® is expanding their Building Envelope team and is seeking a high level, Director of WANTED OFFICE SPACE Business Development to foster strategic alliances with A-list players from the architectural, GC, Seeking To Acquire NYC Middle Market Accounting Firm has owner/developer and building envelope consulting communities in the apex architectural market of the office space to sub-let a distribution company in the NYC Middle Market Accounting Firm has world, Manhattan, NY. 'e Building Envelope Business Development Team is an elite, high-powered Tri-State or New England area. office space to sub-let. Sub-lease space in Top consultative sales team supported by some of the brightest and dedicated professionals in the industry. Please contact Alyssa Brancazio, “A” Building w/7 windowed offices, 11 Equity Transfers at Cubicles, use of Conference Rooms, Reception 'e function of the Director of Business Development will be to partner with architectural firms Area, Kitchen, Full Office Support available. (516) 304-2871 For further information and other project influencers as a portal into the custom building envelope design and engineering with all inquiries. Please contact (212) 404-5403. capabilities of Oldcastle Glass®. 'e Director of Business Development will target custom, large-scale, high profile, landmark or REQUEST FOR PROPOSALS monumental commercial building projects. 'is will be a highly visible position, both internally and externally, within the top tier of A/E/Ccommunities of NYC. I 'is position will be one of NEW YORK CITY HOUSING AUTHORITY several Business Development Directors within the Building Envelope team who are located in major REQUEST FOR PROPOSALS (RFP) architectural hub markets across the country. 'e position will entail formal and informal presentations CONSTRUCTION MANAGEMENT/BUILD SERVICES to architects, GCs and owner/developers to educate them on the complete capabilities of Oldcastle FOR MODERNIZATION OF WHITMAN & INGERSOLL HOUSES Glass®’ custom design and engineering excellence. 'e Director of Business Development will be The New York City Housing Authority (NYCHA) seeks proposals from firms qualified to perform Construction Management/Build services for a major modernization project at Whitman and expected to identify specific project based opportunities, assist with design challenges, secure Ingersoll Houses in Brooklyn, NY. The scope of work will include interior renovation and/or specifications and see the project through to completion. reconfiguration of occupied and vacant apartments and replacement of elevators. The Construction Manager (CM) will provide services in accordance with the terms and conditions About You: of a construction management contract. Under CM/Build the work will be performed by subcontractors working directly for the CM. NYCHA plans to award one contract for CM/Build To be successful in this position, candidates must have several years of highly successful sales/business services for approximately $100 million. This project is funded by the American Recovery and Reinvestment Act (ARRA) and must be completed by December 2011. An early completion development experience gained at an architectural firm or general contractor. We will also consider bonus is being considered. individuals who have demonstrated a high level of performance as architectural sales or business Beginning on June 8, 2009 a copy of the Request for Proposals (RFP), and partial Design development professionals promoting technically challenging commercial systems to top tier architects Documents in disk form may be obtained without charge from Paul Vitale, Director of NYCHA Technical Support Unit, Capital Projects Division, at NYCHA’s Bidders’ Window, 90 Church or high profile, commercial real estate sales experience. Prior experience should include public Street, 11th Floor, New York, New York, 10007, between 10 AM and 4PM, or from NYCHA’s web site (www.nyc.gov/nychaprocurement)under Doing Business with NYCHA. A mandatory I speaking, boardroom presentations or delivering AIA CEU credits. We are seeking a dynamic, Site Visit and Pre-Proposal Conference will be held at 120 Navy Walk (bet. Tillary Street and highly professional, energetic person currently living in or near Manhattan. A Bachelor’s degree with Myrtle Avenue), Brooklyn, N.Y. on June 18, 2009 from 1-4pm. Submissions are due on July 2, 2009 by 4:00 PM, at NYCHA’s Technical Support Unit, Room exceptional experience and presentation skills is acceptable, but an advanced degree is preferred. Strong 11-618, 90 Church St, New York, NY 10007. For further information, call Nancy technical aptitude and a passion for architecture is a must. Ostreicher, CM/RFP Coordinator, Capital Projects Division, at (212) 306-3103. Michael R. Bloomberg John B. Rhea, Chairman About Us: Mayor of the City of New York New York City Housing Authority Oldcastle Glass® is the nation’s premier architectural partner in bringing to life creative, custom visions for non-residential building envelopes. 'rough a series of strategic acquisitions and organic growth, REAL ESTATE ADVISORY SERVICES Oldcastle Glass® has evolved into the leading supplier of architectural glass and aluminum glazing REQUEST FOR PROPOSALS systems, including custom-engineered curtain wall and window wall, architectural windows, storefront The New York City Educational Construction Fund (“ECF”) is seeking systems, doors and skylights. proposals from organizations that are capable of providing real estate development advisory services (“Proposer”) for the re-development of To learn more about this very rare opportunity, feel free to call or email confidential inquires to: select underutilized properties within the portfolio of the New York City

Derek Moore I (800) 875-7172 I [email protected] Department of Education. A copy of the Request for Proposal (RFP) for Real Estate Advisory Services may be obtained from ECF by contacting the Fund at (718) 472-8287. Responses to the RFP must be received at the Fund’s offices by 12 noon, July 6, 2009. New York City Educational Construction Fund 30-30 Thomson Avenue, 4th Floor Long Island City, New York 11101 (718) 472-8287 phone (718) 752-5222 facsimile

PUBLIC & LEGAL NOTICES

NOTICE OF FORMATION OF LIMIT- Notice of Formation of Kezar ED LIABILITY COMPANY. NAME: Productions, LLC. Arts. of Org. filed PUBLIC & LEGAL NOTICES TACET CREATIONS LLC. Articles of with NY Dept. of State on 5/8/09. Organization were filed with the Office location: NY County. Princ. Notice of Formation of A.C. Metric Name: WILLOW ROCK ASSOCIATES, Notice of Formation of Caerus Global Secretary of State of New York (SSNY) bus. addr.: 666 Greenwich St., Apt. LLC. Articles of Org filed with Secy. of LLC Art. Of Org. Filed Sec. of State GP LLC, Art. of Org. filed Sec’y of on 05/14/09. Office location: New York 505, NY, NY 10014. Sec. of State State of NY (SSNY) on 3/18/09. Off. of NY 01/06/09. Off. Loc.: New York State (SSNY) 4/14/09. Office loca- County. SSNY has been designated designated as agent of LLC upon Loc.: New York County. SSNY desig- Co. SSNY designated as agent upon tion: NY County. SSNY designated as as agent of the LLC upon whom whom process against it may be nated as agent of LLC upon whom whom process against it may be agent of LLC upon whom process process against it may be served. served and shall mail process to: c/o process against it may be served. served. SSNY to mail copy of against it may be served. SSNY shall SSNY shall mail a copy of process to CT Corporation System, 111 8th SSNY shall mail process to: The LLC process to THE LLC, 50 Broad, ST., mail copy of process to 750 Lexington the LLC, 184 2nd Avenue, Suite 3A, Ave., NY, NY 10011, regd. agt. upon 301 W 108th St 11E NY, NY 10025. RM. 808, New York, NY 10004. Ave., 16th Fl., NY, NY 10022. New York, New York 10003. Purpose: whom process may be served. Purpose: any lawful activity. Purpose: Any lawful act or activity. Purpose: any lawful activities. For any lawful purpose. Purpose: any lawful activity.

24 | Crain’s New York Business | June 8, 2009 nb23p24-26cls.qxp 6/5/09 3:29 PM Page 25

PUBLIC & LEGAL NOTICES

NOTIFICATION OF DISPOSITION OF Notice of Qualification of HIGHSTAR Notice of Qualification of MANCUSO Notice of Qualification of JBR PART- Notice of Qualification of AUSAF I, ASSETS OF HELICOR GP III HOLDINGS LLC. Authority filed EQUITY PARTNERS, LLC. Authority NERS, LLC. Authority filed with Secy. LLC. Authority filed with Secy. of State A public sale of certain assets of Helicor, Inc. will be with Secy. of State of NY (SSNY) on filed with Secy. of State of NY of State of NY (SSNY) on 05/14/09. of NY (SSNY) on 04/30/09. Office loca- held on June 15, 2009 at the law offices of Reed 04/21/09. Office location: NY County. (SSNY) on 05/18/09. Office location: Office location: NY County. LLC tion: NY County. LLC formed in Smith LLP, 435 Sixth Avenue, Pittsburgh, PA 15219. LLC formed in Delaware (DE) on NY County. LLC formed in Delaware formed in Delaware (DE) on 12/24/08. Delaware (DE) on 04/29/09. Principal ASSETS WILL BE SOLD AS-IS, WHERE IS. 04/20/09. Principal office of LLC: 277 (DE) on 05/14/09. Princ. office of Principal office of LLC: 825 Third office of LLC: One Penn Plaza, Ste. CASH IS REQUIRED FOR THE ENTIRE Park Ave., 45th Fl., NY, NY 10172. LLC: 900 Third Ave., 18th Fl., NY, NY Ave., 10th Fl., NY, NY 10022. SSNY 4625, NY, NY 10119. SSNY designat- PURCHASE PRICE ON THE DATE OF SALE. SSNY designated as agent of LLC 10022. SSNY designated as agent of designated as agent of LLC upon ed as agent of LLC upon whom ASSETS: upon whom process against it may LLC upon whom process against it whom process against it may be process against it may be served. Lot 1: All of Helicor’s interest in certain tangible be served. SSNY shall mail process may be served. SSNY shall mail served. SSNY shall mail process to SSNY shall mail process to the LLC at personal property including approximately 1000 to c/o Corporation Service Co., 80 process to c/o Corporation Service c/o Corporation Service Co. (CSC), the address of its principal office. DE new StressEraser units located in China, 1200 new Co. (CSC), 80 State St., Albany, NY 80 State St., Albany, NY 12207-2543. address of LLC: c/o Corporation and refurbished StressEraser units located in South State St., Albany, NY 12207-2543. Dakota, prepaid materials and components used DE address of LLC: 2711 Centerville 12207-2543. DE addr. of LLC: c/o DE address of LLC: c/o CSC, 2711 Service Co., 2711 Centerville Rd., Ste. to build StressEraser units located in China, and Rd., Ste. 400, Wilmington, DE 19808. CSC, 2711 Centerville Rd., Ste. 400, Centerville Rd., Ste. 400, Wilmington, 400, Wilmington, DE 19808. Arts. of certain tooling and molds used in the manufactur- Arts. of Org. filed with DE Secy. of Wilmington, DE 19808. Arts. of Org. DE 19808. Arts. of Org. filed with DE Org. filed with Secy. of State of DE, ing of StressEraser units located in China, all sub- State, Div. of Corps., John G. filed with Secy. of State, Div. of Secy. of State, John G. Townsend Jeffrey W. Bullock, John G. Townsend ject to any applicable warehousemen’s, mechanics’ Townsend Bldg., 401 Federal St., Corps., PO Box 898, Dover, DE Bldg., 401 Federal St., Ste. 4, Dover, Bldg., 401 Federal St., Dover, DE or similar liens under applicable local laws. Ste. 4, Dover, DE 19901. Purpose: 19903. Purpose: Any lawful activity. DE 19901. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. Lot 2: All of Helicor’s interest in intellectual Any lawful activity. property, which include various Helicor and StressEraser trademarks, among others, and those NOTICE OF FORMATION of Park REEL YOU STUDIOS LLC, Articles of Notice of Qualification of Kondaur Helicor patents, reference numbers 58228/00010 - NOTICE OF FORMATION OF Bridge Advisors LLC. Arts. of Org. Org.filed N.Y. Sec.of State(SSNY) 7th Ventures VIII B1, L.L.C. Authority filed 58228/00022, 58228/00030 - 58228/00039 and Cremona In America LLC. Article of filed with the Secy of State of NY day of April 2009. Office in New York with NY Dept. of State on 5/12/09. 58228/00041 - 58228/00046. Organization filed with the Secretary (SSNY) on 02/20/09. LLC renamed Co. at 825 3rd Avenue, 2nd Floor, New Office location: NY County. LLC formed For more information, please contact John of State of NY (SSNY) on MARCH Park Bridge Financial LLC. Office York New York 10022. SSNY desig. in DE on 4/30/09. NY Sec. of State Berger at 724-387-4540. 20, 2009 Office location NEW YORK location: NY County. SSNY designat- agt. upon whom process may be designated as agent of LLC upon County. SSNY has been designated ed as agent of LLC upon whom served. SSNY shall mail copy of whom process against it may be Notice of Qualification of JBS USA, as agent upon whom process against process against it may be served. process to 1 Maiden Lane, 5th Floor, served and shall mail process to: c/o LLC. Authority filed with NY Dept. of it may be served. The Post Office SSNY shall mail process to principal New York, New York 10038. Reg. Agt. CT Corporation System, 111 8th Ave., State on 4/14/09. Office location: NY address to which the SSNY shall mail business location: C/O the LLC 30 upon whom process may be served: NY, NY 10011, regd. agt. upon whom County. Princ. bus. addr.: 1770 a copy of any process against the Rockefeller Plaza, 41st FL, NY, NY Speigel & Utrera, P.A., P.C. 1 Maiden process may be served. DE addr. of Promontory Cir., Greeley, CO 80634. LLC served upon him/her is C/O the 10112. Purpose of LLC: To engage in Lane, NYC 10038. 1 800 576-1100 LLC: c/o The Corporation Trust Co., LLC formed in DE on 5/29/02. NY LLC 236 WEST 15TH STREET any lawful act or activity. Purpose: Any lawful purpose. 1209 Orange St., Wilmington, DE Sec. of State designated as agent of (#65). New York, NY 10011. Purpose 19801. Cert. of Form. filed with DE Sec. of State, Townsend Bldg., Dover, DE LLC upon whom process against it of LLC: to engage in any lawful act or Notice of Qualification of SGGP Name of LLC: ORDA LLC. Articles of 19901. Purpose: any lawful activity. may be served and shall mail activity. Street address of Principal MANAGEMENT, LLC. Authority filed Org. filed Dept. of State of NY on process to: c/o CT Corporation Business location is: 236 WEST 15TH with Secy. of State of NY (SSNY) on 1/16/09. Office location in NY: New System, 111 8th Ave., NY, NY 10011, STREET (#65).New York, NY 10011. 03/23/09. Office location: NY County. York County. Secy. of State designated Notice of Qualification of Thesys regd. agt. upon whom process may LLC formed in Delaware (DE) on as agent of LLC upon whom process Technologies, LLC. Authority filed be served. DE addr. of LLC: The Notice of formation of Limited Liability 06/27/08. Principal office of LLC: c/o against it may be served. Sec. of State with Secy. of State of NY (SSNY) on Corporation Trust Co., 1209 Orange Company. Name: Selfhelp (KI-KII) Stripes Group LLC, 70 E. 55th St., shall mail a copy of process to: Rayner 1/27/09. Office location: NY County. St., Wilmington, DE 19801. Arts. of Manager LLC (“LLC”). Articles of 11th Fl., NY, NY 10022. SSNY desig- Rowe LLP, 75 Rockefeller Plaza, 20th LLC formed in Delaware (DE) on Org. filed with DE Sec. of State, 401 Organization filed with NY Secretary nated as agent of LLC upon whom Floor, New York, NY 10019. Purpose: 1/13/09. SSNY designated as agent Federal St., Dover, DE 19901. of State (“SSNY”) on May 13, 2009, process against it may be served. any lawful activity. of LLC upon whom process against it Purpose: any lawful activity. NY Office location is New York SSNY shall mail process to the LLC may be served. SSNY shall mail County. The SSNY has been desig- at the address of its principal office. Notice of Formation of Limited Liability process to principal office address of Notice of Formation of MTMH HOLD- nated as agent of the LLC upon DE address of LLC: c/o The Company. Name: Pasha Events, LLC. LLC: 54 Broad St., Ste. 200, Red ING LLC. Arts. of Org. filed with Secy. whom process against it may be Corporation Trust Co., 1209 Orange Articles of Org filed with Sec’y of State Bank, NJ 07701. Arts. of Org. filed of State of NY (SSNY) on 05/08/09. served. The SSNY shall mail a copy St., Wilmington, DE 19801. Arts. of of NY (SSNY) 5/7/09. Office location: with DE Secy. of State, 401 Federal Office location: NY County. Principal of any process to LLC at 520 Eighth Org. filed with State of DE, Div. of NY County. SSNY designated as St., Ste. 4, Dover, DE 19901. office of LLC: c/o Martin Levine, 805 Avenue, New York, NY 10018. Corps., 401 Federal St., Dover, DE agent for LLC upon whom process Purpose: any lawful activity. Third Ave., Ste. 1100, NY, NY 10022. Purpose/character of LLC is to 19901. Purpose: Any lawful activity. may be served. SSNY shall mail copy SSNY designated as agent of LLC engage in any lawful act or activity. of process to the LLC, 29 Broadway, Notice of Formation of TRIBECA upon whom process against it may be Notice of Qualification of Metropolitan Ste 2222, New York, NY 10006. POINTE MEMBER (HHE) L.L.C. Arts. served. SSNY shall mail process to Notice of Formation of Rockrose Real Estate Partners VII, L.P., App. Purpose: Any lawful purpose. of Org. filed with Secy. of State of NY the LLC at the address of its principal General Properties L.L.C. Arts. of for Auth. filed Sec’y of State (SSNY) (SSNY) on 4/24/09. Office location: office. Purpose: Any lawful activity. Org. filed with Secy. of State of NY 3/2/09. Office location: NY County. LP Notice of formation of Limited Liability NY County. Principal business loca- (SSNY) on 4/7/09. Office location: NY tion: 290 Park Avenue South, 14th Notice of Formation of Independent org. in DE 2/26/09. SSNY designated Company. Name: Selfhelp (KI-KII) County. Principal business location: Fl., NY, NY 10010. SSNY designated Content Company, LLC. Arts. of Org. as agent of LP upon whom process Associates LLC (“LLC”). Articles of 290 Park Avenue South, 14th Fl., NY, as agent of LLC upon whom process filed with NY Dept. of State on against it may be served. SSNY shall Organization filed with NY Secretary NY 10010. SSNY designated as against it may be served. SSNY shall 12/13/07. Office location: NY County. mail copy of process to Attn: Felipe of State (“SSNY”) on May 13, 2009, agent of LLC upon whom process mail process to: 290 Park Avenue Sec. of State designated as agent of Dorregaray, 135 E. 57th St., 16th Fl., NY Office location is New York against it may be served. SSNY shall South, 14th Fl, NY, NY 10010, Attn: LLC upon whom process against it NY, NY 10022. DE office addr.: c/o County. The SSNY has been desig- mail process to: 290 Park Avenue CEO. Purpose: any lawful activity. may be served and shall mail CSC, 2711 Centerville Rd., Wilmington, nated as agent of the LLC upon South, 14th Fl., NY, NY 10010, Attn: DE 19808. Cert. of LP on file: SSDE, whom process against it may be process to the principal business CEO. Purpose: any lawful activity. addr.: 130 Watts St., #3S, NY, NY Townsend Bldg., Dover, DE 19901. served. The SSNY shall mail a copy NOTICE OF FORMATION OF LIMITED 10013. Purpose: any lawful activity. Name/addr. of each gen. ptr. avail. at of any process to LLC at 520 Eighth LIABILITY COMPANY. NAME: EL & EL Notice of Formation of ZZ PICTURES, SSNY. Purpose: any lawful activities. Avenue, New York, NY 10018. REALTY LLC. Articles of Organization NOTICE OF APPLICATION OF LLC. Arts. of Org. filed with Secy. of Purpose/character of LLC is to were filed with the Secretary of State AUTHORITY OF Air Berlin PLC & State of NY (SSNY) on 04/17/09. Notice of Formation of REGULATORY engage in any lawful act or activity. of New York (SSNY) on 02/09/09. Co. Luftverkehrs KG (a/k/a Air Berlin Office location: NY County. Principal REPORTING SERVICES, LLC. Arts. Office location: New York County. SSNY PLC & Co. Luftverkehrs KG. L.P.) to office of LLC: c/o Skuli Malmquist, of Org. filed with Secy. of State of NY NOTICE OF FORMATION of Neighbor- has been designated as agent of the do business in New York as a foreign 435 W. 19th St., 4th Fl., NY, NY 10011. (SSNY) on 05/11/09. Office location: hood Eats, LLC. Arts. Of Org. filed with LLC upon whom process against it may limited partnership. Application for SSNY designated as agent of LLC NY County. SSNY designated as Secy. Of State of N.Y. (SSNY) on be served. SSNY shall mail a copy of Authority filed with the Secretary of upon whom process against it may be agent of LLC upon whom process 5/06/2009. Office location: NY County. process to the LLC, 40-39 69th Street, State of New York (SSNY) on 4/28/09. served. SSNY shall mail process to against it may be served. SSNY shall SSNY designated as agent of LLC upon Woodside, New York 11377-3835. N.Y. office location: New York County. the LLC at the address of its principal mail process to the LLC, c/o Michael whom process against it may be served. Purpose: For any lawful purpose. LP formed in Berlin, Germany on office. Purpose: Any lawful activity. H. Barnett, Esq., 375 Lexington Ave., SSNY shall mail process to principal 7/18/91. SSNY has been designated Ste. 200, NY, NY 10168-0002. business location: 35 East 30th St., # 9C, NOTICE OF FORMATION of as agent of LP upon whom process Notice of Qualification of Blackstone Purpose: Any lawful activity. NY, NY 10016. Dissolution date: May PresenceCare LLC. Arts. Of Org. filed against it may be served. The P.O. Real Estate CMBS Fund L.P.Authority 1, 2059. Purpose: Any lawful activity. with Secy. Of State of N.Y. (SSNY) on address to which the SSNY shall mail filed with NY Dept. of State on 5/1/09. Notice of Qualification of LEX SPECIAL 02/18/09. Office location: New York a copy of any process against the LP Office location: NY County. LP formed ASSETS LLC. Authority filed with Secy. Notice of Qualification of D. E. Shaw County. SSNY designated as agent of served upon him/her is C/O: Condon in DE on 4/14/09. NY Sec. of State of State of NY (SSNY) on 05/20/09. Real Estate Portfolios 10, L.L.C. LLC upon whom process against it & Forsyth LLP; Times Square Tower; designated as agent of LP upon whom Office location: NY County. LLC Authority filed with NY Dept. of State may be served. SSNY shall mail 7 Times Square; New York, NY 10036. process against it may be served and formed in Delaware (DE) on 03/23/09. on 2/26/09. Office location: NY County. process to: 7014 13th Ave., Suite 202, The principal Business Address of shall mail process to the principal Princ. office of LLC: 1271 Ave. of the LLC formed in DE on 8/13/07. NY Brooklyn, NY 11228. Principal busi- the LP is: Saatwinkler Damm 42-43; business addr. of the LP: c/o The Americas, NY, NY 10020. SSNY des- Sec. of State designated as agent of ness location: 41 5th Ave., 14C, NY, NY 13627 Berlin, Germany. The names Blackstone Group L.P., 345 Park Ave., ignated as agent of LLC upon whom LLC upon whom process against it 10003. Purpose: Any lawful activity. and business address of the general NY, NY 10154. Regd. agt. upon whom process against it may be served. may be served and shall mail process partners are available from the SSNY. process may be served: CT Corporation SSNY shall mail process to c/o to: D. E. Shaw & Co., L.P., 120 W. The name and business address of System, 111 8th Ave., NY, NY 10011. Corporation Service Co., 80 State St., 45th St., 39th Fl., NY, NY 10036, the authorized official where a certifi- DE addr. of LP: c/o The Corporation Albany, NY 12207-2543. DE addr. of Attn: John Liftin, General Counsel, Advertise on cate of limited partnership is filed is: Trust Co., 1209 Orange St., Wilmington, LLC: 2711 Centerville Rd., Ste. 400, regd. agt. upon whom process may Amtsgerich Berlin-Charlottenburg: DE 19801. Name/addr. of genl. ptr. Wilmington, DE 19808. Arts. of Org. be served. DE addr. of LLC: 1209 www.crainsnewyork.com Amtsgerichtsplatz 1:14057 Berlin, available from NY Sec. of State. Cert. filed with State of DE, Div. of Corps., Orange St., Wilmington, DE 19801. Call John Gallagher Germany. Purpose of LP is to engage of LP filed with DE Sec. of State, 401 John G. Townsend Bldg., 401 Federal Arts. of Org. filed with DE Sec. of in any lawful act or activity. Federal St., Dover, DE 19901. St., Ste. 4, Dover, DE 19901. State, 401 Federal St., Dover, DE @ 212-210-0189 1232255 w.o. Purpose: any lawful activity. Purpose: Any lawful activity. 19901. Purpose: any lawful activity.

June 8, 2009 | Crain’s New York Business | 25 20090608--A--0026-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/5/2009 9:01 PM Page 1

dent of government affairs at the Fi- nancial Services Roundtable. All hail Rep. Barney Frank Of course, it also behooves Media bankers to play nice with Mr.Frank. Continued from Page 1 do,” says John LaFalce, a former do you need to be bribed to have Asked if bankers have come to grips mouth lican congressman Rick Lazio, a J.P. Democratic congressman who sat on your interests aligned with the peo- with new realities,he tartly answers: Morgan executive who co-chaired the House’s banking committee and ple paying your salary?” “I think they understand a new set last week’s event and who had served is now a prominent Buffalo lawyer. “It’s a good question,” squirmed of regulations is coming. And it’s Continued from Page 3 on the Financial Services Commit- Already, Mr. Frank has made his Morgan Stanley CEO John Mack, better to sit down and get it right boss is getting what he wants. Since tee with Mr. Frank. “But he always first strike, targeting the credit card “and it’s complicated.” than get it wrong.” the arrival of his star analyst in early was good for his word, and he un- business. Legislation co-sponsored It’s too simple to say that Mr. 2006, President Kevin Fisher says, derstands the complex issues that we by New York Democrat Carolyn Frank is hostile to banks.Earlier this A glimpse of the future 14-year-old Pali Capital is per- face today. It’s fortuitous to have Maloney and signed into law last spring, he gave ailing banks a big lift banks will get a glimpse of the ceived differently. such a smart guy in such a key spot.” month will significantly erode the in- when he lobbied accounting rule- new regulatory regime later this “Clients recognize us as a re- Mr. Frank swats such sweet makers to cut financial institutions month, when the administration is search shop versus just an execution nothings aside. Mr. Lazio, he snaps, some slack in how they value toxic expected to unveil a major financial- business [that makes trades],” Mr. “has gone from being one my oppo- In a survey of assets.That move should boost bank reform package. This week, Mr. Fisher says. nents to lobbying me.That changes earnings for the coming quarter, if Frank’s committee will both hold a In the three years since Mr. how people think.” Congress, he not longer. A spokesman says that hearing on eliminating Wall Street Greenfield and research co-head In addition to scores of slickly Mr. Frank was less concerned about pay practices that encourage exces- Walter Piecyk joined the firm from dressed Wall Streeters, hundreds of was the only benefiting commercial banks than sive risk-taking and advance negoti- Fulcrum Global Partners, Pali has public-housing officials and devel- helping Federal Home Loan Banks, ations over regulating derivatives,the tripled the number of senior analysts opers eagerly pressed to meet Mr. member rated government-sponsored enterprises opaque instruments that destroyed in its U.S. research division to nine. Frank at last week’s gala,which ben- that promote middle-class home American International Group. Before Fulcrum, Mr. Greenfield efited the nonprofit National Hous- ‘most partisan’ ownership by lending to banks. Behind the scenes, Mr. Frank is spent eight years at Goldman Sachs. ing Conference. But the star attrac- The 69-year-old congressman working on creating what policy The 35-year-old self-professed tion wasn’t interested in working the and ‘most from Newton, Mass., is actually a wonks call a “systemic risk regula- media geek—he carries a BlackBer- friendly crowd. native of Bayonne, N.J. His father tor”—a federal authority that would ry Bold and an iPhone, and has As Mr. Frank awaited an award bipartisan’ owned a truck shop near the Holland coordinate oversight of the major rigged his home computer so he can recognizing his advocacy of low-in- Tunnel—about as unlikely a passage banks, insurers and hedge funds. watch Hulu on a big screen—posts come housing stretching back 40 to Harvard College and Harvard The policy issue most important on the Pali blog up to three times a years, he sat alone in a front-row Law School as one can imagine. Mr. to Mr. Frank himself is eliminating day. seat, removed his glasses and tiredly Frank became expert in housing is- abuses in the mortgage business.He rubbed his eyes. He looked up only dustry’s profits.Interest revenue is ex- sues as a top aide to the mayor of believes that to prevent banks from Wide range of subjects when Henry Cisneros,a secretary of pected to decline by $13.3 billion,ac- Boston. When elected to Congress making home loans that consumers the blog provides him with a fo- housing and urban development cording to an analysis by brokerage in 1980, he joined the committee can’t afford, Wall Street firms must rum for shorter, less formal takes during the Clinton administration, Keefe Bruyette & Woods. The new overseeing housing,banking and ur- be forced to keep more mortgages than would appear in a research approached to shake his hand. law limits how quickly card issuers ban affairs, which later became the on their books instead of selling note. Recent topics range from can raise interest rates, and it restricts Financial Services Committee. them all to investors at a steep prof- Comcast’s little-noticed agreement Humbling the banks the fees that consumer-credit powers “He’s a pro-capitalist liberal,” it. Underwriters also must be liable to pay ESPN for broadband video— mr. frank has reason to be tired. such as American Express,Citigroup says Robert Raben, a former counsel for loans that go bad after being sold “a watershed event for content own- As the nation’s dysfunctional finan- and J.P. Morgan can charge cus- to Mr. Frank who’s now a Washing- as securities. An aide concedes that ers”—to the commercials that Time cial system undergoes its most ex- tomers.What’s more,the law requires ton lobbyist for nonprofit groups. there is “huge pushback”from banks Warner Cable is running and what tensive regulatory overhaul since the the government to study the rates Mr. Frank ambles around the on this matter. they say about its intensifying com- New Deal, he is at the epicenter. He charged to merchants that accept halls of Congress in the type of pin- In his speech at last week’s petition with Verizon FiOS. is constantly back-and-forthing credit cards,which could lead to pres- striped suit familiar to any banker— fundraising gala for the housing Some observers see the blog, with Obama administration offi- sure to reduce those rates—typically although his untucked shirt betrays coalition, Mr. Frank dropped an- along with its client-only Twitter cials, fellow lawmakers, industry around 1.5% of the purchase price. any notion that he might be one.Yet other hint about what the future of feed, as necessary for communicat- lobbyists and consumer advocates, In addition to pushing tough financial executives credit him with banking might look like. People in ing with investors. plowing through a mountain of pro- laws, Mr. Frank has humbled the reining in his fellow Democrats’ an- the affordable-housing business, he “Everything is changing so posals that include creating a new banking industry with his words. griest impulses about how to handle said, understand that “public and quickly, he has to read the tea leaves super-overseer for big financial in- He can deliver in a single sentence Wall Street. He can charm Repub- private cooperation complement while they’re still floating,” says stitutions and hedge funds, regulat- an insightful remark that is both licans, too: Last month, he was the each other and improve the other. Robert Thompson, professor of tel- ing derivatives, forcing changes to cranky and funny.He scored a direct only congressman ranked among Public-private cooperation is a evision and popular culture at Syra- the mortgage business, reinventing hit earlier this year when he asked a the “most partisan”and the “most bi- model for the rest of the economy.” cuse University. credit-rating agencies and reform- group of bank chief executives ap- partisan” in a survey of members by Before any bankers in the crowd Mr. Greenfield sees the technol- ing Wall Street executive pay. pearing before his committee: “If The Hill newspaper. could try to persuade him other- ogy as more weapons in his arsenal. “When you’re up to your ass in you didn’t get a bonus, what part of “He finds a way to negotiate,” wise, he took his award and quickly “We’re looking for any data point alligators, you do what you have to your job would you not do? ... Why says Scott Talbot, senior vice presi- exited the museum—stage left.
to give us an edge,” he says.

PUBLIC & LEGAL NOTICES

Notice of Formation of BCMS COR- Notice of Qualification of FIR TREE Notice of Formation of 8515 Bay Notice of Qualification of Blackstone NOTICE OF FORMATION of Limited PORATE N.A. LLC, a domestic LLC. VALUE ABS HOLDINGS, LLC. Parkway JS LLC. Arts. of Org. filed Family Real Estate Special Situations Liability Company / Partnership (LLC) Arts. of Org. filed with the SSNY on Authority filed with Secy. of State of with Secy. of State of NY (SSNY) on Partnership L.P.Authority filed with NY Laurel 17C, LLC L.L.C. Articles of 03/09/09. Office location: NY County. NY (SSNY) on 04/22/09. Office loca- 3/26/09. Office location: NY County. Dept. of State on 4/23/09. Office loca- Organization filed with the Secretary SSNY has been designated as agent tion: NY County. LLC formed in SSNY designated as agent of LLC tion: NY County. LP formed in DE on of State of New York (SSNY) on upon whom process against the LLC Delaware (DE) on 02/20/09. Principal upon whom process against it may 3/30/09. NY Sec. of State designated 1/14/2009. N.Y. Office location: New may be served. SSNY shall mail a office of LLC: 505 Fifth Ave., 23rd Fl., be served. SSNY shall mail process as agent of LP upon whom process York County. SSNY has been desig- copy of process to: The LLC, 30 NY, NY 10017. SSNY designated as to: c/o Wharton Realty, 500 Fifth against it may be served and shall nated as an agent upon whom Broad St. 29th Fl, NY, NY 10004. agent of LLC upon whom process Avenue, 54th Fl., NY, NY 10110. mail process to the principal business process against it may be served. Purpose: Any Lawful Purpose. against it may be served. SSNY shall Purpose: any lawful activity. addr. of the LP: c/o The Blackstone The Post Office address to which the mail process to Jeffrey D. Group L.P., 345 Park Ave., NY, NY SSNY shall mail a copy of any Notice of Formation of HSK Capital, Tannenbaum, 505 Fifth Ave., 23rd Fl., Notice of Formation of DIGITAL 10154. Regd. agt. upon whom process process against the LLC served upon LLC. Articles of Organization filed NY, NY 10017, registered agent upon PLIGHT STUDIOS LLC, a domestic may be served: CT Corporation him/her is C/O the LLC 16055 N. Dial with Secy. of State of NY (SSNY) on whom and at which process may be LLC. Arts. of Org. filed with the SSNY System, 111 8th Ave., NY, NY 10011. Blvd, Suite 4 Scottsdale, Arizona 04/29/09. Office location: NY County. served. DE address of LLC: c/o on 01/14/09. Office location: NY County. DE addr. of LP: c/o The Corporation 85260. The Principal Business SSNY designated as agent of LLC Corporation Service Co., 2711 SSNY has been designated as agent Trust Co., 1209 Orange St., Address of the LLC is: 16055 N. Dial upon whom process against it may Centerville Rd., Ste. 400, Wilmington, upon whom process against the LLC Wilmington, DE 19801. Name/addr. of Blvd, Suite 4 Scottsdale, Arizona be served. SSNY shall mail process DE 19808. Arts. of Org. filed with may be served. SSNY shall mail a genl. ptr. available from NY Sec. of 85260. Dissolution Date: Perpetual (if to the LLC, 300 East 79th Street, Apt. Secy. of State of the State of DE, 401 copy of process to: James McCarthy, State. Cert. of LP filed with DE Sec. any) Purpose/character of LLC: To 26E, New York, NY 10021. Purpose: Federal St., Dover, DE 19901. 425 E. 63rd St Apt. E4B, NY, NY of State, 401 Federal St., Dover, DE engage in any lawful act or activity. any lawful act or activity. Purpose: Any lawful activity. 10065. Purpose: Any Lawful Purpose. 19901. Purpose: any lawful activity. 1236875 w.o.

26 | Crain’s New York Business | June 8, 2009 20090608--A--0027-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/4/2009 8:43 PM Page 1

BUSINESS CORPORATE LADDER Ex-Goldman analyst joins up with a British brokerage PAGE 28 buck ennis

GOTHAM GIGS Media master Nice day for a gay wedding ROBIN DOMENICONI, 47, a one-time print media gal, is Proponents push for action on marriage bill currently U.S. vice president of advertising sales, publishing and marketing at Microsoft. Ms. Domeniconi’s switch to the tech world was certainly well-timed, considering print advertising’s rapid decline. FROM LAW TO ADS Ms. Do- meniconi began her career as a paralegal upon graduating from the University of Florida, but moved quickly into the media industry, where she sold ad space. She moved here in the early 1990s to run the New York office of Art & Antiques. MAKING MAGAZINES In the mid-1990s, she became publisher of Golf for Women, and later group publisher of Country Home and Country Gardens. In 2000, she helped launch Real Simple, a Time Inc. publication that became an advertising juggernaut. She was promoted to president of Time Inc.’s media group in 2005. BEST-SELLER In 2008, Ms. Domeniconi joined Microsoft, where she now oversees U.S. ad sales, publishing and marketing. “I love working on brands, innovation and SAVING THE DATE: creativity,” she says. Mike Combs (left) and —maia blume Joel Derfner talk with Gail Watson of A Simple Cake about EXPERT OPINIONS their wedding plans. GETTING SATISFACTION FROM INTERNET DATING online dating is a cost- effective way to meet new people. It’s important to be buck ennis authentic. Don’t lie about your GAY MARRIAGE age, weight or height, and use BY MIRIAM KREININ SOUCCAR real pictures. Keep profile ON THE MARCH comments short and specific. ivian polak was on her way out of town on the day that Iowa Your initial contact should be legalized same-sex marriage this past April. When she heard the news, fun and flirty, and should refer she had to pull over to the side of the highway because she was crying so to something particular you like about that person. Find hard she couldn’t see the road. the time to actually date— “When you have been treated like a second-class citizen for many States that allow gay don’t spend all your time on years, it’s something to have [validation] like this,” says Ms. Polak, co- marriage the computer.There are lots head of intellectual property and technology transactions at Dewey & Connecticut of niche sites, so there’s really Iowa something for LeBoeuf, who in her spare time wrote an important legal brief for the Massachusetts Iowa case. “I’m very optimistic now for New York.” everyone. Coming soon —julie So optimistic, in fact, that Ms. Polak, who has been with her partner for 11 years and engaged Vermont: 9/1/09 spira for one, believes that by their 12th anniversary they will be married in their home state. Maine: 9/14/09 Author New Hampshire: 1/1/10 The Perils VWith Massachusetts, Connecticut and even Iowa legalizing same-sex marriage, many gay and of Cyber- lesbian New Yorkers are more hopeful than ever that their state is next—and more than a little an- Legalized & rescinded Dating noyed that it’s taking so long. Last month, the state Assembly passed a same- See NICE DAY on Page 30 California

istockphoto istockphoto June 8, 2009 | Crain’s New York Business | 27 20090608--A--0028-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/4/2009 4:16 PM Page 1

BUSINESS LIVES CORPORATE LADDER Bill Tanona Player back in analysis Goldman’s former chief U.S. banking analyst at Collins Stewart, a London-based brokerage PERSONNEL FILE top bank analyst that’s hiring in New York. His re- sponsibilities include telling in- EMPLOYER Collins Stewart takes up with a British vestors whether to buy stock in his TITLE Managing director former employers,Goldman and J.P. brokerage in town Morgan Chase & Co. (Mr. Tanona AGE 35 isn’t divulging his opinions just yet.) RÉSUMÉ Brokerage industry ana- BY AARON ELSTEIN lyst, Goldman Sachs and J.P. Decamping Morgan Chase ill tanona learned ear- though his pay at Collins Stewart ly that there was big is probably smaller than it was at MANAGEMENT STYLE Tough money to be made on Goldman—Mr. Tanona calls his love Wall Street. He recalls compensation “competitive”—the FAVORITE RESTAURANT Any forking over a hefty fee— former walk-on with the Villanova steakhouse. “I like them all.” Bthough not exactly how much—to University basketball team is glad to buy IBM stock as a teenager. be back in the game. His move mir- “When I realized how much I rors ones taken by counterparts who “Getting someone with Bill’s cre- paid in commissions,I decided to get also decamped for smaller firms, in- dentials is really a coup,” says John into the brokerage business,” Mr. cluding former Deutsche Bank ana- Abularrage, Collins Stewart’s chief

Tanona says. lyst Mike Mayo, who moved to Ca- executive of North America. “He’ll buck ennis The Worcester, Mass., native did lyon Securities, and Michael Hecht, have the tools to make his group a indeed get into the business, and he a Bank of America alum now at JMP force.” Mr. Tanona, whose father was a sion,he switched to research and be- went far. He became a top analyst at Securities. It might be difficult for Mr. custodian and whose mother per- gan following brokerage stocks. Goldman Sachs, where his assess- “I’m excited to build something Tanona’s new boss to back up those formed back-office work at a local In 2005, Mr. Tanona went to ments of such rivals as Morgan Stan- from the ground floor,” Mr. Tanona words, as Collins Stewart has been bank, began his career on Wall Goldman,where he had a front-row ley and Lehman Brothers won him a says. bruised by the industry’s decline. It Street’s bottom rung. seat for the meltdown. big following among investors. Analysts typically don’t bring in posted a $30 million operating loss After earning an accounting de- Gone forever are the days when But like so many other employees much money even during good last year, with revenue down 25%. gree, he landed a job cold-calling banks took outsized risks with bor- at what used to be called investment times, but they’re useful in drum- Determining that an expansion potential customers at a PaineWeb- rowed money, he says. And for in- banks, Mr. Tanona was thrown out ming up investment ideas or contro- strategy begun in 2006 was unlikely ber office in Philadelphia. It wasn’t vestors to be reassured, institutions of work late last year as the industry versy. Little-known Collins Stewart to deliver acceptable results,the firm easy persuading people 30 years his will have to disclose more than they he had covered for a decade abrupt- is wagering that it can make a name replaced its chief executive and fi- senior to meet with him, but he did have been comfortable with in de- ly collapsed. for itself stateside by signing on some nance director late last year and in well enough to move to J.P.Morgan tailing the securities on their books. He landed on his feet, though. prominent analysts. The firm has March said it would revisit its “re- in New York in 1998.After a stint in “Banks can’t hide anymore,” Mr. On June 1, he started his new job as about 150 employees in New York. muneration structure.” the investment management divi- Tanona says.

EXECUTIVE MOVES

ACCOUNTING & CONSULTING 53, joined as executive vice president LAW Ernst & Young: Jeffrey Taylor, 44, joined as and global director of strategic planning Arnold & Porter: Marcus Asner, 45, was HOT JOBS Americas leader, fraud investigation and and development. He was formerly named partner. He was formerly dispute services. He most recently senior vice president at CH2M Hill. assistant U.S. attorney for the Southern served as U.S. attorney for the District Paul Morris, 49, was named executive District of New York. WANTED: PRESIDENT of Columbia. vice president and global director of Debevoise & Plimpton: Alyona N. Kucher, Marks Paneth & Shron: David strategic consulting and sustainability. 33, was promoted to partner from COMPANY TV Guide Publishing Group Gannaway, 45, joined as director. He He had been vice president at Cherokee associate. JOB DESCRIPTION Oversee the 56-year-old weekly entertainment had been director at KPMG. Investment Partners. Jasmine Powers, 35, was promoted to magazine and other titles Prager and Fenton: Richard J. Stoller, 39, partner from associate. was promoted to partner from director FINANCE & INSURANCE DLA Piper: Jonathan Black, 44, joined as MOST IMPORTANT TASKS Boost ad revenue and increase of business management. The Community Preservation Corp.: partner. He had been partner at Brown readership Errol Wander, 49, was promoted to Christopher Hooke, 57, was named Rudnick. partner from director of business director of Freddie Mac and Fannie Ronald Borod, 67, was named partner. CREDENTIALS NEEDED Proven ability to run a publishing company management. Mae sales. He had been senior vice He was formerly partner at Brown SALARY Previous president earned base pay of $780,000 plus RSM McGladrey and McGladrey & Pullen: president at RBS Citizens Bank. Rudnick. bonus in 2008, according to public filings Moshe Metzger, 54, was named Jefferies & Co.: Andrew Peisch, 48, was Goulston & Storrs: David J. Rabinowitz, managing director. He was formerly named managing director and co-head 46, joined as director. He was most RECRUITER Unannounced chief financial officer at Andor Capital of mortgage- and asset-backed securities recently partner at Sutherland. DOWNSIDE Leading a fading title in an advertising slump Management. banking and origination. He was Greenberg Traurig: Louis Vitali, 52, joined formerly a managing director at as shareholder. He was formerly partner UPSIDE Getting the opportunity to revamp an iconic brand ADVERTISING & COMMUNICATIONS Deutsche Bank. at DLA Piper. CheckM8: Dan Scherer, 37, joined as Kasowitz Benson Torres & Friedman: In December, private equity firm OpenGate Capital bought TV senior vice president of sales and HEALTH CARE Charles M. Miller, 43, was promoted to Guide Publishing for $1 from Macrovision Solutions Corp. Last marketing, a newly created position. He amfAR: Gregory Boroff, 40, was named partner from special counsel. week, OpenGate reportedly ousted Scott Crystal, who had been was formerly vice president of publisher vice president for development. He had Adina G. Storch, 37, was promoted to president and chief executive of the group since 2005. Executive relations at Tremor Media. been senior vice president of external partner from associate. Vice President Michael Clayton was named interim president. The Euro RSCG New York: Jeremy Daly, 35, relations at the Food Bank for New York Meister Seelig & Fein: Brook Boyd,55, struggling magazine’s circulation has dropped to 3.2 million from was named director of digital planning. City. joined as special counsel. He had been He most recently served as director of special counsel at Windels Marx Lane 9 million four years ago. —AMANDA FUNG planning at Agency.com. HIGH TECH & NEW MEDIA & Mittendorf. Jack Morton Worldwide: Justin Wilk, 36, Inform Technologies: Rob Balazy, 44, was Zeichner Ellman & Krause: Benjamin H. was promoted to senior vice president appointed chief executive. He was Green, 52, was named partner. He had from vice president. He continues as formerly vice president of business been partner at Dreier. global account director. development at NameMedia Inc. TargetCast tcm: John Garment, 56, was REAL ESTATE operations. He was formerly managing Australia and New Zealand at GE appointed vice president and director of Centro Properties Group US: Tiffanie M. director of the Eastern region at Beacon Capital. marketing. He had been director of Fisher, 41, was named executive vice Capital Partners. WNS (Holdings) Ltd.: Daniel Wollenberg, global knowledge management at DDB EXECUTIVE PROMOTIONS president and chief financial officer. She 44, joined as senior vice president and Worldwide. The fastest way to get an announcement into was formerly executive director of SERVICES head of the global transformation Crain’s is to submit details online. Fill out the form Morgan Stanley Real Estate. ExlService Holdings Inc.: Vishal Chhibbar, practice. He had been a senior vice ARCHITECTURE & DESIGN at www.crainsnewyork.com/submit. The RFR Holding: Gregg Popkin, 52, joined as 41, was appointed chief financial officer. president at Huntington National Bank. Parsons Brinckerhoff: David McAlister, Executive Moves column is also available online. executive vice president of real estate He was formerly a regional head for —maia blume

28 | Crain’s New York Business | June 8, 2009 20090608--A--0029-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/5/2009 11:08 AM Page 1

THE WEEKS AHEAD

THIS WEEK’S EVENTS (212) 803-3289 or JUNE 17 projects available in New York City. C-198. Fee: $50. (516) 425-5456 or JUNE 9 [email protected]. Professional Women in Construction 5:15 p.m. to 8:30 p.m., Connolly’s [email protected]. A Career Choice holds networking JUNE 16 holds networking reception for people in Restaurant, 121 W. 45th St., third floor. JUNE 19 program on seven strategies for New York American Marketing the real estate industry. 5:30 p.m. to Fee: $50 members, $65 nonmembers. Internet Strategy Forum, New York investing during a recession and in Association holds program on strategies 8 p.m., Club 101, 101 Park Ave. Fee: (212) 879-7300, ext. 10, or chapter, holds program on digital volatile markets. 7:30 a.m. to 9 a.m., for building a multinational brand. $75 members, $90 nonmembers. [email protected]. strategies with speakers from NBC Hippodrome, 1120 Sixth Ave., fourth 6 p.m. to 8 p.m., Getty Images Studio, (212) 486-7745 or [email protected]. JUNE 18 Universal, Hearst and other companies. floor. Fee: $35 in advance, $40 at the 200 Hudson St., second floor. Fee: $35 JUNE 17 Crain’s New York Business holds 9 a.m. to 11:30 a.m., NYU, Kimmel door. (212) 626-6937. members, $55 nonmembers. Sterling National Bank and Salibello & conference on the future of New York Center, 60 Washington Square South. JUNE 9 (212) 687-3280 or [email protected]. Broder hold seminar on current City small business. 8 a.m. to 12 p.m., Fee: $30 members, $40 nonmembers. Net@Work holds seminar on learning JUNE 16 developments in corporate taxation. Crowne Plaza Times Square, 1605 Preregistration required. (212) 413-6249 how to automate your accounts payable Metro New York Chapter Legal 8 a.m. to 10 a.m., 650 Fifth Ave., fourth Broadway. Fee: $99 for individual ticket, or [email protected]. processes. 8:30 a.m. to 10:30 a.m., 575 Marketing Association holds workshop floor. Free. (212) 575-3404 or $990 for a table. Preregistration required. —maia blume Eighth Ave. Free. Preregistration on targeting résumés and communi- [email protected]. http://futurenyc.crainsnewyork.com. required. (212) 997-5200, ext. 4330. cating with hiring managers. 6 p.m. to JUNE 17 JUNE 18 JUNE 9 8 p.m., Park Avenue Tower, 75 E. 55th New York State Society of Professional Five O’Clock Club holds seminar on More meetings online at Business Development Institute holds St., seventh floor. Fee: Free for mem- Engineers, New York chapter, holds beating the odds with search firms and www.crainsnewyork.com social communications leadership bers, $25 nonmembers. Preregistration dinner and lecture on the stimulus ads. 6:30 p.m. to 8:30 p.m., CUNY Click on “Events” forum. 8:30 a.m. to 12 p.m., New York required. (646) 382-6938. package as it relates to infrastructure Graduate Center, 365 Fifth Ave., University’s midtown campus, 11 W. 42nd St. Fee: $175. (212) 765-8043 or [email protected]. JUNE 9 Chapin Hill Advisors holds workshop on empowering women and increasing your financial IQ. 6 p.m. to 7:30 p.m., 9 E. 47th St., suite 500. Fee: $65. (212) 583-1992. JUNE 9 Morris Park Alliance holds business-to- business networking reception. 6 p.m. to 9 p.m., 940 Morris Park Ave., Bronx. Fee: $20 members, $30 nonmembers. (718) 828-1800. JUNE 9 Camba holds workshop on marketing like a pro. 3 p.m. to 5:30 p.m., 884 Flatbush Ave., second floor, Brooklyn. Free. (718) 282-2500. JUNE 10 Flatiron/23rd Street Partnership and TD Bank hold breakfast with Manhattan Borough President Scott Stringer. 8:30 a.m. to 10 a.m., TD Bank, 260 Park Ave. South, main floor. Free. (212) 741-2323 or [email protected]. JUNE 10 Sterling National Bank and Fatoullah & Associates hold seminar on planning for long-term care. 8 a.m. to 10:30 a.m., 650 Fifth Ave., fourth floor. Free. (212) 575-3404 or [email protected]. JUNE 10 New York Public Library holds lecture on understanding intellectual property rights for entrepreneurs. 5:30 p.m. to 7 p.m., Science, Industry and Business Library, 188 Madison Ave., room 018. Free. (212) 592-7000. JUNE 11 HR Alliance holds networking reception. 6:30 p.m. to 10 p.m., Skyport Marina, 599 E. 23rd St. Fee: $35. (212) 933-4006 or [email protected]. JUNE 11 Women Can Have It All holds business- to-business networking reception. 6:30 p.m. to 9:30 p.m., Tierra Sana Restaurant, 100-17 Queens Blvd., Queens. Fee: $37. (718) 790-8911 or [email protected]. JUNE 15-21 JUNE 15 New York Interagency Engineering Council holds conference on project delivery in economically challenging times. 9 a.m. to 5 p.m., CUNY Graduate Center, 365 Fifth Ave. Fee: $125 members, $150 nonmembers.

TO LIST YOUR EVENT

Crain’s lists business meetings online and includes them in the print edition on a space-available basis. Events in New York City with admission fees of less than $300 are considered for the print publication. Listings can be submitted only through the Crain’s Web site. To submit a calendar listing, go to www.crainsnewyork.com and click on “Events.” Sponsors have a choice of several free or paid list- ing options. All business events will be posted online within two business days. Crain’s can neither confirm receipt of listings nor say if or when event listings will appear in the print edition.

June 8, 2009 | Crain’s New York Business | 29 20090608--A--0030-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/4/2009 8:44 PM Page 1

BUSINESS LIVES Nice day for a gay wedding NEW REVENUE SOURCE IF GOV. DAVID PATERSON needs money to fill the state’s Continued from Page 27 Gayest Person Ever, got engaged in unacceptable that other states are depleted coffers, legalizing gay marriage could help. The sex marriage bill,and if it’s passed in 2007 after nagging his boyfriend for leaving New York in the dust. Inter- few states that do allow gay marriage are cashing in. the Senate,Gov.David Paterson has months.For a while they planned to est groups like the Empire State A report released last month found that in the five made it clear he will sign it into law. get married in California and more Pride Agenda have spent hundreds years since Massachusetts legalized same-sex marriage, Despite the setback in California recently considered Iowa—the home of thousands of dollars to lobby law- the state has reaped more than $111 million in total revenue, according to last month, when the state’s state of Mr. Derfner’s fiancé, Mike makers, plan rallies and run com- The Williams Institute at the UCLA School of Law. Supreme Court decided to uphold a Combs.But now,the couple is going mercials. In the past few weeks, ad- A separate study found that same-sex couples in the creative industry ban on same-sex marriage in the to wait until they can do it locally. vocate groups have reportedly spent were almost three times as likely to move to Massachusetts after 2004 state, the mostly positive momen- “I am not getting married in more than $200,000 on TV ads. than before. tum has gay and lesbian couples some cornfield in Iowa,” says Mr. Only recently have anti-gay mar- “The timing of this movement to Massachusetts suggests that those planning weddings, attending ral- Derfner, who wants to wed in riage groups, such as the National couples were flocking to the first state to allow them to marry,” says Gary lies and becoming activists. It also morning coats and top hats. Organization for Marriage, turned Gates, a scholar at the institute. The infusion of younger and highly educated has the special events industry—hit their focus to New York.The conser- same-sex couples could help improve the long-term economic prospects for Fighting for rights hard by the recession—salivating. vative Christian group,which fought that state, Mr. Gates adds. “It will be a whole new market, evan wolfson, executive director against legalizing same-sex marriage particularly in New York City,” says of Freedom to Marry, is engaged to in the Northeast and California, be- istockphoto Kelven Book, chief wedding plan- a man from Canada,which legalized gan running 30-second television Corey Johnson, who handles gov- state, but Mr. Sabatino’s mom was ner at Canard Catering Co. “We’ll gay marriage in 2003. Despite pres- and radio spots late last month in ernment affairs for a downtown real 84, and they wanted to make sure have a deluge if it passes here.” sure from Canadian friends to get New York City and Albany.The or- estate developer,organized a protest she could be there—she walked Some couples have already taken married there,the couple is commit- ganization is reportedly spending that drew more than 10,000 people both men down the aisle. the plunge. Mr. Book, for one, de- ted to marrying in New York, where $100,000 on its media campaign. in November, after Prop 8 was Now Mr. Sabatino, a principal in cided not to wait for New York. He they live. In 2000, Mr. Wolfson left Yet despite being better organ- passed in California.On May 25,he Leap Technologies, and Mr. married his partner on their 15th his job as a lawyer at Lambda Legal, ized, gay marriage proponents aren’t helped plan another rally the day Voorheis,an interior designer, speak anniversary of dating in May in a a gay rights law firm, to found Free- resting on their laurels. “Almost California’s Supreme Court ruled to at rallies,educate community groups grand home in Boston. “When it’s dom to Marry,which helps organize every one of the jurisdictions that uphold Prop 8. and go to Albany Senate hearings. being offered elsewhere, the temp- gay rights groups on this issue. touch New York allows gay marriage, Despite the current momentum, tation is pretty great to go there, be- “As important as it is, this is far and New York doesn’t,” says Ms. Po- Mom was there Mr. Sabatino says he isn’t totally cause we’ve waited so long,” he says. more than personal,” Mr. Wolfson lak, who has been writing her state michael sabatino and his hus- confident the Senate will vote on Other New Yorkers are holding says.“It’s about making sure this is the senator and funding lobbying ef- band, Robert Voorheis, have been marriage equality in this legislative out for home, especially because the kind of state and country that treats forts. “It’s outrageous that we’ve got fighting for marriage equality since session, but he believes a decision to chance seems in their grasp for the everyone fairly and equally. I want to such a strong presence in this state 1999. In 2003, on their 25th an- legalize gay marriage is inevitable. first time. see New York back at the forefront.” and [we’re not treated equally].” niversary together, they wed in “If it doesn’t happen by June, it Joel Derfner,a composer and au- In true New York spirit, the local That feeling of injustice is only Canada. They wanted to wait until will only stimulate the community thor of Swish:My Quest to Become the gay and lesbian community finds it pushing people to fight harder. gay marriage was legalized in a U.S. to fight harder,” he says.

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30 | Crain’s New York Business | June 8, 2009 20090608--A--0031-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 6/5/2009 7:33 PM Page 1

WEEK IN REVIEW For daily news updates, go to www.crainsnewyork.com

seeking to recoup $3 million from bottling companies more time to Banks raise cash Moinian and an unspecified lobby for changes in the law. to shed TARP yoke amount from Mr. Silverstein. Environmentalists decried the stay. several financial institutions launched stock offerings to raise Recession drains Hospitals’ dream: funds that would help repay bailout major brokerage proton beams money they received under the Troubled Asset Relief Program. real estate investment banking memorial sloan-kettering Morgan Stanley raised $2.2 billion, firm DTZ Rockwood blamed the Cancer Center is organizing a AmEx collected $500 million, and industry’s deal drought as it filed consortium of hospitals to bring a J.P.Morgan Chase & Co. raised for bankruptcy.The company proton-beam therapy center to $5 billion. historically received some 70% of Manhattan.The competitive its revenue from brokerage fees that technology, which focuses radiation News’ new No. 2 have stalled during the recession. ... into precise cancer-killing doses, is Elementi, an Italian eatery in Park usually prohibitively expensive.The news corp. tapped Slope, Brooklyn, also filed for price for launching the center is Chase Carey (left) bankruptcy protection. likely to top $200 million. to become its

chief operating bloomberg news Going home again officer. Mr. Carey, Bingo gone who has served as auction house Real Estate wrong chief executive of GM skids into bankruptcy Disposition put 150 homes up for satellite television service ANOTHER DETROIT CORNERSTONE crumbled as GENERAL bid in its second New York City a woman filed a lawsuit DirecTV since 2003, will replace MOTORS CORP. event in a year.The homes, listed at claiming she was longtime COO Peter Chernin, filed for Chapter 11 bankruptcy protection. The Auction.com, are foreclosed severely injured by a who is slated to leave the job July 1. federal government took 60% ownership of the company, which properties in the New York area. charity bingo stunt He announced his resignation in filed for reorganization with $172.81 billion in debt and $82.29 Organizers expected more than pulled by actor Sacha February. billion in assets. Aiming for a speedy re-emergence, it agreed to 1,600 bidders to attend the Baron Cohen (left) midtown Manhattan event on during a filming for his Shrinking AIG sell its HUMMER brand to SICHUAN TENGZHONG HEAVY June 7. upcoming NBC INDUSTRIAL MACHINERY CO. in China. GM also announced Universal movie, embattled insurance giant plans to lay off 21,000 workers and idle 20 major factories. Bruno. Richelle American International Group Inc. Water-bottle Olson is seeking plans to sell its two lower nickels dammed unspecified Manhattan headquarters buildings, damages, saying at 70 Pine St. and 72 Wall St., to Morgan Stanley Smith Barney, Atlantic Development Group sued a federal judge said New she was disabled overseas investors.The company is earlier than planned.The entity, real estate rainmaker Larry York officials will have to wait during a tussle reportedly set to score $100 million which was slated to launch during Silverstein and The Moinian until at least April 2010 to with the actor. for the pair. AIG is also selling its the third quarter, combines Group, charging that they failed to start collecting 5-cent —from staff consumer finance operations in Morgan Stanley’s wealth deliver money it was to use for deposits on water reports and Argentina. management unit with Citi’s Smith building low-income housing bottles sold in the bloomberg Barney brokerage division. It has projects in the city. Atlantic is state.The delay gives news reports getty images about $14 billion in net revenue Citi, Morgan and employs some 18,500 advisers. birth new venture Suing Silverstein morgan stanley and Citigroup Inc. finalized their joint venture, affordable-housing developer

CRAIN’S SEEKS NOMINATIONS FOR BEST-COMPANIES CONTEST IN DIFFICULT ECONOMIC TIMES, great workplaces stand out even more. If you think you work for one of the best companies in New York City, nominate your company for the 2009 Crain’s New York Business’ Best Places to Work competition at www.bestplacestoworknyc.com. Executives of nominated Combined Strength companies will be contacted and asked if they wish to register. If you are the human resources person at your company, or another authorized representative, you can register for the contest at that same On June 1st, New York-based Marcum & Kliegman LLP and address, www.bestplacestoworknyc.com. For more information, visit the site, Florida-based Rachlin LLP will join forces, creating one of the largest contact Jessica Pouchan at [email protected], or call public accounting and advisory services firms on the East Coast. The (877) 455-2159, toll-free. newly combined firm will become Marcum LLP in the Northeast and The deadline to register is MarcumRachlin, a division of Marcum LLP, in the South. July 17. It’s a strong combination offering enhanced resources, an The free competition will expanded range of business solutions and a team of 800, working in recognize workplaces based on 10 offices. A Top 20 firm with more experience, greater coverage and an employee survey measuring a combined history of 112 years. factors including work environ- ment, innovations and new ideas, and people’s connection to their workplaces, as well as an employer survey of company policies and practices. Finalists and winners will be announced in a supplement to Crain’s in fall 2009. To see last year’s inaugural Best Places to Work section online, visit www.crainsnewyork.com/section/bestplacestowork. marcumgroup.com To be eligible for the contest, companies must have at least one location and at least 25 employees within the five boroughs. Crain’s is working with leading research firm Best Companies Group to N E W Y O R K N E W J E R S E Y C O N N E C T I C U T F L O R I D A G R A N D C A Y M A N conduct and evaluate the employee and employer surveys.

June 8, 2009 | Crain’s New York Business | 31 © 2009 Liberty Mutual Group. Responsibility. What’s your policy? your What’s Responsibility. THERE ARE ALWAYS NEW ITEMS ON THE MENU HERE. MENU ON THE NEW ITEMS ALWAYS ARE THERE WE HELPED MAKE SURE ONE OF THEM ISN’T HEPATITIS A. MAKEWE HELPED SURE ONE OF THEM ISN’T HEPATITIS LIABILITY COMMERCIAL AUTO AUTO LIABILITY COMMERCIAL COMPENSATION WORKERS PROPERTY When a restaurant chain discovered one of its food servers one of A, Hepatitis immediately contracted chain discovered they When a restaurant made two calls. alertOne to the local health department, and the second alert helped identify to We us. patrons and recommended while putting proper treatment exposed the minds of those not exposed liability from the incident. the risk and our customer’s the disease spreading, This minimized of rest. to keeping responding quickly, it’s Whether its good reputation. chain protect Which helped the restaurant committed helping to we’re protocols, litigation stringent or adhering to informed, broker and your you or agent broker contact your more information, For our policy. That’s business. your protect you or visitlibertymutualgroup.com/gl. CN012976 5/29/09 2:29 PM Page 1 Page PM 2:29 5/29/09 CN012976