CRAINSNEW YORK BUSINESS
NEW YORK BUSINESS® SEPTEMBER 18 - 24, 2017 | PRICE $3.00 HALL
WHAT LAST of WEEK’S FAME PRIMARY MEANS FOR BUSINESS P. 7
WHY AMAZON SHOULD WANT TO BE IN NEW YORK P. 9
THE LIST NEW YORK’S LARGEST EMPLOYERS P. 10 YEAH, I’M TALKING TO YOU Robert DeNiro and this year’s other inductees have something to say about the city they love PAGE 13
VOL. XXXIII, NO. 38 WWW.CRAINSNEWYORK.COM
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P001_CN_20170918.indd 1 9/15/17 7:22 PM SEPTEMBER 18 - 24, 2017 CRAINSNEW YORK BUSINESS
FROM THE NEWSROOM | JEREMY SMERD | EDITOR IN THIS ISSUE Gentri cation’s upside 4 IN CASE YOU MISSED IT 5 HEALTH CARE IN THE FOUR-PLUS YEARS I’ve lived in Bedford-Stuyvesant, 6 SPOTLIGHT Brooklyn, Noel Brown has gone from fearing gentri cation The problem 7 POLITICS with term to embracing it. at’s because his business is booming. Not limits? only have his old customers not le , but he has also gained 8 REAL ESTATE Nobody votes anymore new ones. Like me. 9 VIEWPOINTS I used to pass Brown’s A&A Bake & Double Shop daily 10 THE LIST on my way to the Nostrand Avenue A station. Invariably a FEATURES line would snake out of the 300-square-foot spot onto the sidewalk as customers waited to pay a couple of bucks for 13 HALL OF FAME doubles—Trinidadian street food that consists of two fried atbreads lled with curried chickpeas. I was skeptical. I have since moved to another part of the neighbor- hood. Soon Brown will be moving too. In the coming “But my business weeks he’ll open a 3,000-square-foot restaurant on Fulton exceeds the limit Street that will serve lunch and dinner—in addition to his P. 24 I was thinking SALLIE SLATE signature doubles. His sta of eight will grow considerably. “I was skeptical,” said Brown, whose small shop has been about by 15% 24 GOTHAM GIGS open for 17 years. “ e original people were moving out, 25 SNAPS and new people were moving in. But my business exceeds 26 FOR THE RECORD the limit I was thinking about by 15%.” 27 PHOTO FINISH e story of Bed-Stuy is Brown’s writ large. Since he opened his shop, the num- ber of businesses in the neighborhood has grown by 73%, to 1,910, as violent crime CORRECTIONS fell by 44%, according to a report published last week by state Comptroller omas The Grand Hyatt New York has 1,298 rooms. And 280 Park Ave. is owned by Vornado Realty Trust and SL DiNapoli. Employment is at a record high, having increased by 45%, to around Green Realty. Both facts were misstated in “Larg- 17,000 jobs since the end of the Great Recession. est Landlords in the (Midtown) East,” published “We are at the epicenter of gentri cation,” said Councilman Robert Cornegy Jr., Sept. 11. who represents the neighborhood. “It’s a double-edged sword.” Rich Antoniello is now CEO of Complex Networks, Not everyone has shared in the gains. Poverty persists. e unemployment which captures 750 million video views per month. The company had changed its name and the fre- rate has declined to 12% from 18.5% in 2011, but part of that drop is attributable quency of the viewership number was misstated in to new residents, who are more likely to be employed. e unemployment rate Asked & Answered, published Sept. 11. among long-term residents (15.6%) is nearly twice that of new ones (8.6%). Mitchell Gold + Bob Williams plans to open an outlet But economic development is the way forward. Unlike communities where store in Industry City, Brooklyn. The type of store was misstated in For the Record, published council members have blocked aordable-housing projects, Cornegy’s has backed Sept. 11. developments that set aside aordable space for small businesses. And unlike other council members who oppose Airbnb, Cornegy has organized discounts for people who use sharing-economy services, such as Uber and Airbnb, and spend money on local brick-and-mortar businesses. “I’m hopeful,” he said, “that with the job and business growth we’re experiencing, we can overcome the challenges.”
ON THE COVER PHOTO: BUCK ENNIS NOMINATIONS ARE OPEN RISING STARS DIGITAL DISPATCHES DO YOU KNOW AN UP-AND- COMING NEW YORKER? Go to CrainsNewYork.com CRAIN’S wants to hear from you. READ Mayor Bill de To submit a nominee, go to Blasio tries to shut CrainsNewYork.com/40nominate. Manhattan Borough Because of the high volume of > President Gale Brewer applications, a $199 service fee out of East Harlem will be charged to process and rezoning meeting. review submissions. ■ An auction of foreclosed taxi medallions DEADLINE IS DEC. 1 is luring private investors without industry experience. All nominees must be under 40 years old as of March 26, 2018. ■ Amtrak chairman says construction of Hudson River tunnel will start in the spring. Vol. XXXIII, No. 38, Sept. 18, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double ATTEND Go to CrainsNewYork.com/ issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 19, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address events for the latest opportunities to net- changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. work with New York professionals and learn For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. more about issues of importance to you. (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. Coming up: a Sept. 28 breakfast forum between City Planning Commission Chair Marisa Lago and journalists from Crain’s. BUCK ENNIS
2 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 18, 2017
P002_CN_20170918.indd 2 9/15/17 7:17 PM WHAT’S NEW SEPTEMBER 18, 2017
AGENDAThe demise of Diller’s Pier 55 marks a new low for New York
he collapse of a project to build an arts and culture complex on the Hudson River sends a depressingly cynical message to anyone looking to give back to the city: Your love and largesse are not welcome here. TIt is hard to reach any other conclusion after a civic group funded by an otherwise community-oriented developer helped kill a planned park and performance center that media mogul Barry Diller and his wife, fash- ion designer Diane von Furstenberg, o ered to build on the Far West Side. FANTASY ISLAND: Using classic obstructionist tactics and the legal talents of attorney A rendering of what might have Richard Emery—which would have been better applied to any number been of humanitarian causes—an obscure civic organization called City Club of New York frustrated the philanthropists for two years until they aban- doned their proposal last week. rooted in Durst’s falling-out with the trust. Rather than help deliver an Instead, Pier 55 will remain nothing more than dozens of support col- unprecedented waterfront amenity, the opposition used the courts to win umns already sunk into the riverbed and dilapidated piles for the indef- delays and rack up legal fees. Diller and von Furstenberg’s magnanimous inite future. e thousands of hours spent designing and engineering a o er started at $100 million in 2014 and more than doubled as litigation magni cent public venue will also go to waste. e jobs that would have and other factors escalated the cost of the undertaking. e couple and been created, the artistry and theater that the trust clearly did not expect such antip- would have been performed, and the days Instead of a magni cent public athy. In most cities such a gi would have and evenings that locals and tourists would been embraced by all. have enjoyed will never happen. Perhaps an- venue, Pier 55 will remain rotting It would be nice if Durst compensated the other city is more deserving of the couple’s piles and abandoned columns Hudson River Park Trust for the loss of the generosity. Diller gi . He believes the trust should focus e developer who funded City Club’s on completing the original plan for the park, ght, Douglas Durst, enjoys a ne reputation as a civic-minded develop- not on building a fancy island. But the trust could have done both, and with er of environmentally friendly buildings, but he has had his di erences a couple of hundred million dollars it still could. Diller is but one of about over the years with the Hudson River Park Trust, which was working with 70 billionaires who call New York City home. Another should step forward Diller on the Pier 55 project. City Club’s lawsuit claimed the construction to rescue this worthy e ort before it sinks permanently from view. might harm Hudson River organisms, but we suspect the opposition was But given the history of Pier 55, why would anyone bother? — THE EDITORS
FINE PRINT The Dow Jones Industrial Average closed at a record high Sept. 15 and has risen by 21% since November. For those keeping track—which possibly includes President Donald Trump—the stock market had gained 6% at this point of Barack Obama’s presidency, fallen 12% during George W. Bush’s and risen 12% under Bill Clinton.
BY GERALD SCHIFMAN STATS
25 WORDS OR LESS A MILLION REASONS
A DISPROPORTIONATELY HIGH NUMBER of New Yorkers earn at least $1 million a year, though AND THE CITY Forget Harvard. I’ve the percentage growth of that income bracket is slower than in most states. “ New York’s share of $1 million earners in already graduated % the U.S., despite being home to just 6.1% of from the toughest 11.4 the population Increase in New school there is % York’s million-dollar earners —Michelle Jones, whose acceptance 39.9 from 2010 to 2015, a rate that ranked 40th among states by the university was revoked just before her 20-year prison term ended. Average state and local tax deduction for A school of cial cited the potential for New Yorkers making $1 million or more— bad publicity. Jones, who was convict- $502,191 83% higher than the national average ed of killing her 4-year-old son as a State tax rate on couples earning troubled teen, enrolled in a New York % at least $2.1 million, versus 6.85% University Ph.D. program last month. 8.82 if under that amount
HEATERWICK STUDIO, ISTOCK HEATERWICK ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY. SOURCE: Empire Center for Public Policy
SEPTEMBER 18, 2017 | CRAIN’S NEW YORK BUSINESS | 3
P003_CN_20170918.indd 3 9/15/17 7:11 PM AGENDA ICYMI CRAINSNEW YORK BUSINESS Publisher, VP Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701
EDITORIAL Putting a price on pollution, INTO THE FUTURE: editor Jeremy Smerd De Blasio touted a managing editor Brendan O’Connor carbon-reduction assistant managing editors Erik Engquist, mayor tells landlords to pay bill that has yet to Jeanhee Kim, Robin D. Schatz be written. copy desk chief Telisha Bryan AYOR BILL DE BLASIO followed his massive Dem- art director Carolyn McClain ocratic primary victory by grabbing national head- photographer Buck Ennis senior reporters Joe Anuta, Aaron Elstein, lines and jabbing President Donald Trump’s environ- Matthew Flamm, Daniel Geiger M reporters Jonathan LaMantia, Caroline Lewis mental agenda with a plan to require owners of large buildings data reporter Gerald Schifman here to curb their carbon dioxide emissions or face penalties. web producer Peter D’Amato Under the proposed rst-of-its-kind mandate, city land- columnist Greg David contributors Tom Acitelli, Theresa Agovino, lords would have to meet new e ciency standards by 2030 or Will Bredderman, Erik Ipsen, Cara S. Trager
pay nes of as much as $2 per square foot of their properties. ADVERTISING Owners of the roughly 14,500 buildings that the city says con- www.crainsnewyork.com/advertise advertising director Irene Bar-Am, tribute 25% of the city’s carbon footprint will have to overhaul 212.210.0133, [email protected] their entire heat and hot-water systems and upgrade their roofs senior account managers Lauren Black, Zita Doktor, Rob Pierce, and windows. e plan would impact only buildings of 25,000 Stuart Smilowitz, Debora Stein square feet or more. senior marketing coordinator Charles Fontanilla, 212.210.0145 e Real Estate Board of New York supports improving en- [email protected] ergy e ciency but called for “careful analysis” of the plan’s potential impact. De Blasio described their concerns as sales coordinator Devin Arroyo, “nonsensical.” “Big landlords can handle this,” the mayor said. “ ey have the money—I assure you.” 212.210.0701, [email protected] ONLINE To gain national exposure, the mayor’s sta leaked the story in advance to e Washington Post, even though general manager the proposal’s fate remains uncertain: e bill has not yet been written, let alone introduced in the City Council, Rosemary Maggiore, 212.210.0237, [email protected] which must approve the plan. CUSTOM CONTENT De Blasio also could not say how he would stop landlords from passing the costs of the improvements onto their director of custom content tenants, other than pushing Albany to change the rent laws so that these capital improvements could not be used Patty Oppenheimer, 212.210.0711, [email protected] to raise regulated rents. But given that real estate–friendly Republicans and conservative Democrats dominate the custom project manager Danielle Brody, state Senate, such a change in law is unlikely. e mayor’s o ce did say the plan would have an economic upside, [email protected] EVENTS estimating that the retro tting initiative will produce 17,000 jobs, which the city will provide training for. e www.crainsnewyork.com/events administration will also oer low-interest loans to assist smaller landlords. – WILL BREDDERMAN director of conferences & events Courtney Williams, 212.210.0257, [email protected] manager of conferences & events An offer they couldn’t refuse DATA POINT battery, and false imprisonment a er Adrienne Yee, [email protected] events coordinator Ashlee Schuppius, Unlike mob boss Paul Castellano, Sparks being dragged out of a Knicks game by BEFORE CORNELL TECH’S CAMPUS [email protected] Steak House has not met its demise at Garden security in February. OPENED LAST WEEK, CLASSES WERE AUDIENCE DEVELOPMENT 210 E. 46th St. e 50-year-old eatery at director of audience & content the Durst-owned building had feared a HELD AT GOOGLE’S CHELSEA DIGS. Taking more care partnership development Michael O’Connor, 100% rent hike, but its new 15-year lease Missouri-based health care company 212.210.0738, reportedly only included an increase of STUDENTS LAUNCHED 38 START- Centene Corp. is acquiring nonpro t in- [email protected] a little more than 40%. UPS IN FIVE YEARS THERE, 95% OF surer Fidelis Care, of Queens, for $3.75 REPRINTS billion. e deal will make Centene a reprint account executive Lauren Melesio, Someone’s teed off WHICH REMAIN IN NEW YORK. leader in the state’s Medicaid market, 212.210.0707 e Trump Golf Links at Ferry Point with more than 1.6 million members. PRODUCTION production and pre-press director was vandalized. e rst sentence of the Simone Pryce Emma Lazarus poem e New Colos- Yards of fabric Out with a bang media services manager Nicole Spell
sus—though not its more famous lines Hudson Yards developer e Related e base of the old Kosciuszko Bridge SUBSCRIPTION CUSTOMER SERVICE “Give me your tired, your poor, your Cos. is in talks to give New York Fashion will be demolished at 5 a.m. Sept. 24. www.crainsnewyork.com/subscribe huddled masses yearning to breathe Week a permanent home at the Shed, Nearby streets will be blocked o for [email protected] free”—was spray-painted on the greens the 6-story culture center being built at several hours a er the explosions. 877.824.9379 (in the U.S. and Canada). of the eighth, 10th and 13th holes. the Far West Side project. Fashion Week $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print has been taking place at various sites subscriptions with digital access. Elle-o and goodbye since leaving Bryant Park in 2010. to contact the newsroom: Marie Claire Creative Director Nina Gar- www.crainsnewyork.com/staff cia is taking over as Elle’s editor-in-chief. It’s time 685 Third Ave., New York, NY 10017-4024 Robbie Myers, who held that title for 17 Time magazine Editor-in-Chief Nancy phone: 212.210.0100; fax: 212.210.0799 years, is stepping away to spend more Gibbs has stepped down. A veteran re- Entire contents ©copyright 2017 time with her children. Garcia was Elle’s porter, she became the rst woman to Crain Communications Inc. All rights fashion director from 2000 to 2008. lead the newsweekly, in 2013. reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license agreement. ‘Senator Pot’ Labor pains CRAIN COMMUNICATIONS INC Former Sen. Alfonse D’Amato, who New York State Teamsters Conference chairman Keith E. Crain was known as “Senator Pothole” for his Pension and Retirement Fund partic- vice chairman Mary Kay Crain An even bigger pizza rat focus on constituent services, was hired ipants voted to slash monthly pension president K.C. Crain by the Marijuana Policy Project as a se- payments to current and future retirees The organizer of the botched New senior executive vice president Chris Crain nior adviser for its newly launched New by 30% starting in October. York City Pizza Festival promised secretary Lexie Crain Armstrong refunds to attendees, some of editor-in-chief emeritus Rance Crain York a liate. e Washington, D.C.– chief nancial of cer Robert Recchia based organization comes to the Empire Suiting up for a different court whom paid $75 for a few slivers founder G.D. Crain Jr. [1885-1973] State to strengthen the medical cannabis e feud between former Knick Charles of cold pie. Attorney General Eric chairman Mrs. G.D. Crain Jr. [1911-1996] program here. D’Amato was considered Oakley and team owner James Dolan Schneiderman has opened a fraud a hard-liner on drug policy during his has spilled into federal court. Oakley investigation into the event.
FLICKR, SYL WIA VIA FACEBOOK 18 years in the Senate. sued Dolan for defamation, assault and
4 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 18, 2017
P004_CN_20170918.indd 4 9/15/17 7:00 PM AGENDA On behalf of the YORK COLLEGE FOUNDATION BOARD OF TRUSTEES Health benefits THE CITY UNIVERSITY OF NEW YORK and reimagined THE CATSIMATIDIS FAMILY Brighton Health Plan Solutions says it ICEMA GIBBS - JetBLUE AIRWAYS can save employers money & BY CAROLINE LEWIS DR. ASHOK NIGALAYE
health-plan administrator is hoping to lure metro-area employers with the prospect of 15% to 65% savings on employee contri- butions. But it comes with a catch: To save Amoney, employees would have to get most of their care from a single health system. Called Create, the new health-plan model is the latest o ering from Brighton Health Plan Solutions, a Manhattan-based health-plan-management rm. While many plans o er savings for patients who seek care in-network, limiting medical services to a single Thank You health system is novel. But changes in the way doctors are paid have made providers willing to o er savings to loyal patients. So-called value-based payments reward New York City providers who better coordinate patients’ medical care to improve their health. Coordination is easier if pa- for the enthusiastic support tients stay in a single system. “One of the biggest challenges in of York College’s value-based payments is that you % don’t know where a person will go 50th Anniversary Celebration to get their care,” said Simeon Schin- 65MAX rate delman, chief executive of Brighton drop for loyal Health Plan Solutions. “In our mod- patients el, doctors and hospitals know who their patients will be. ey can be- gin to build relationships with pa- tients immediately, even when people have no need for health care.” So far Create o ers plans structured around three health systems: Mount Sinai Health System, the Long Island Health Network and New Jersey’s Englewood Hospital and Medical Center. “For many years employers o ered broad net- works,” said Joseph Kra, who leads Mercer’s health care consulting practice for the New York metro area. “ ere are a lot of conversations happening now around the fact that not all providers o er the same City National is the bank quality. It may be in the best interest of a company’s employees, and its bottom line, if employees can go to built on client referrals. a provider that o ers higher-quality care.” Mount Sinai believes being part of a lower-cost Top Ranked in Client Referrals.* plan could appeal to employers and workers looking to reduce costs, said Stephen Furia, its vice president of population health solutions. “For the employers, Richard Moon health care is typically the second-biggest line item Owner, in the operating budget, and it’s the thing they’re least Richard Moon & able to budget for e ectively,” he said. Cozette Vergari Associates CPAs Owner, Referred Cozette to e product, though, may not appeal to workers Vergari & Napolitano City National who are already attached to doctors outside the sys- Attorneys tems Create has contracted with. Getting members to stay in-network is di cult enough without making the network more limited, said Rosanna Furio, manager of the health and wel- fare fund and pension fund for United Wire, Met- al & Machine Local 810. e union contracts with MagnaCare, another product from Brighton Health Plan Solutions. e company has landed two clients for Create, in- cluding a union. It is also in talks with “several dozen” employers and bene t funds, ranging in size from 100 to more than 100,000 workers, Schindelman said. ® “Growing geographically is our rst priority,” the Call (866) 407-0834 to learn more or visit cnb.com/referrals. The way up. chief executive added. “We are simultaneously in dis- cussions with at least six other health care systems that * Based on interviews conducted by Greenwich Associates in 2015 with more than 2200 executives at small and mid-sized businesses in California with sales of $1-500 would give us broad coverage through central and million. CNB results are compared to leading competitors on the following question: How likely are you to recommend [bank] to a friend or colleague? southern New Jersey, Westchester, the Bronx and Fair- CNB MEMBER FDIC. ©2017 City National Bank. All Rights Reserved. City National Bank is a subsidiary of Royal Bank of Canada. eld, Conn.” ■
SEPTEMBER 18, 2017 | CRAIN’S NEW YORK BUSINESS | 5
P005_CN_20170918.indd 5 9/15/17 7:01 PM AGENDA SPOTLIGHT SMALL BUSINESS
Couples strike a chord with music-class franchise A desire for family time leads to a multimillion-dollar business BY CARA S. TRAGER
lison Berna and Allison Schlanger became fast friends at a baby mu- sic class in 2005. Besides sharing a name, both were working moms with twins trying to solve the work-life balance conundrum. A dozen years later they’re making millions of dollars helping parents keep their preschool kids active and stimulated. Now they Aare their own bosses, allowing them the freedom to make time for family. e women’s working relationship began with dinner and wine with their husbands, the conversation moving to how to strike out on their own. Soon the couples put a plan into action: ey pooled more than $1 million from savings, family and friends to develop an indoor play space called Apple Seeds. From the get-go they wanted to create a brand that could become a franchise operation. When Apple Seeds opened in 2007, three of the founders were on board full time: Berna, formerly a sports program manager at UNICEF; Schlanger, who had been an MTV producer; and Schlanger’s husband, Craig, a former Gold- man Sachs trader who had been investing in real estate. About six months later Berna’s husband, Bobby, le ad agency BoxTop Media, where he was a partner, to join them. e foursome secured a 15,000-square-foot space near Madison Square Park and equipped it with an indoor playground and cooking, music and art classes for kids up to 6 years old. e 100-employee company has since added a 7,500-square-foot location on the Upper West Side, and Stuyvesant Town has contracted it to manage its children’s programming, Oval Kids by Apple Seeds. As Apple Seeds grew, so did the founders’ itch to franchise. But with the com- pany’s formidable capital requirements, they decided to clone just one compo- nent of the business—a 45-minute music class. “We thought, Let’s learn how to be a franchisor by starting with Songs for Seeds,” said Bobby Berna.
Hooked on music A Songs for Seeds class usually begins with a live three-piece band that plays GUITAR HEROES: popular and original tunes. e band’s leader instructs the class in colors, shapes, Alison and Bobby Berna and Allison counting and animal names. e children and their caregivers sing, dance and and Craig Schlanger play instruments from around the world. are living out their Sara Naghedi, a handbag designer, recently renewed for a 12-week session for dreams. her 1-year-old daughter, Noor. “Other classes can be a little repetitive for a mom. But Songs for Seeds is fun and interactive, and the time goes so fast.” With no xed costs, Songs attracts franchisees because they only have to pay musicians and rent space in places like synagogues and community centers on a per-class basis. Franchises cost $45,000, which includes an approved location for 10 years. Franchisees can expect to spend $55,000 more initially to cover fees such as travel to New York for the training, the band’s instruments as well as the proprietary Songs “roadie box,” which holds instruments for the students, a bubble machine and other props. ey also pay a 7% royalty fee, a typical rate, according to Tom Scarda, a consultant for FranChoice, a national franchise ad- visory and brokerage agency. Lisa Kozinn, whose twins attended Apple Seeds, opened the Songs franchise beta in 2012 at the Manhattan Youth Downtown Community Center in TriBeCa. Last year she expanded into Hoboken. Both sites are pro table. “I was hooked as soon as I took the class,” said Kozinn, who sold an accessories business when her children were born because it was too time-consuming. Kozinn admits that Songs has evolved into a “big commitment” but says it still allows her exibility so she can have family time. Twenty-one of 28 Songs franchise units are operating, with a total enrollment of more than 1,000 kids in 100 classes per week. e rest are set to open soon. FOCAL POINTS Eight franchisees own more than one Songs location. Songs charges $25 to $35 per child per class, depending on the location, and classes turn a pro t with ve or six kids. NAME Apple Seeds Songs is in the right place at the right time. “Cuts in school programs are FOUNDED 2007 creating an opportunity for music- and art-education franchises to expand,” said LOCATIONS Headquarters in Chelsea, plus a site on the Upper West Side; Scarda. He estimated the market to be anywhere between $100 million and $200 Songs for Seeds franchises are in 12 states, with 11 locations in New York million—and more competitive in urban areas with such programs as Gymbo- City and Westchester ree, Music Together and Children’s Music Academy. REVENUE $3.9 million in 2016, including $665,000 just from the franchise For franchisees, the key step is nding and hiring aordable and reliable mu- sicians. But since the classes are steady daytime gigs that don’t interfere with eve- GROWTH 15% from 2015 to 2016; the franchise segment alone grew ning rehearsals or weekend tours, Kozinn said she has had no diculty hiring 325% musicians in the area. “ ey recommend each other, and I’ve had people leave DIVISION OF LABOR All founders provide onboarding, training and support. waitress and waiter positions,” she said. Alison Berna and Allison Schlanger seek suitable franchise owners; Craig Although they now run two successful and growing businesses, the founders Schlanger serves as the investor-relations liaison; and Bobby Berna guides maintain that their ventures give them exibility. “It’s not like the work goes owners through the franchise-buying process and develops strategic business away,” said Allison Schlanger. “But as business owners, we get to choose what opportunities, including international sales.
BUCK ENNIS hours of the day we’re at work and what hours we’re with our family.” ■
6 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 18, 2017
P006_CN_20170918.indd 6 9/15/17 2:40 PM AGENDA POLITICS
Election results signal bad news for business Mayor, council and labor poised to push the envelope further BY WILL BREDDERMAN
fter four years of pro- but powerful union won. on a promise to extract more tually every mayoral request of that tax hikes would have to gressive new rules e union has already from the city’s wealthy to fund Albany since then has been dis- wait until his party controls and laws, city busi- spurred the city to crack down social programs. He revisited missed by Gov. Andrew Cuo- the state Senate—2019 at the ness interests should on Airbnb rentals, ban conver- that this year, proposing a 2.5% mo and Senate Republicans. earliest. Abrace for more. sions of hotel rooms to apart- tax on home sales of more than So redistributionist policies Mayor Bill de Blasio’s Dem- ments and discourage construc- $2 million to fund senior hous- State of denial will remain on hold. Mean- ocratic primary rout of three tion of nonunion hotels. Now it ing and a new “millionaires In the a ermath of his lop- while, developers can take challengers suggests he will may leave the ultimate imprint tax” to pay for subway repairs sided win, however, the mayor heart from de Blasio’s empha- double down on his policies of on the City Council by helping and reduced-price MetroCards said all obstacles in progres- sis on new construction and the past four years, while City to select its next speaker. for the poor. sives’ way would vanish as if from some council race out- Council primary results may Operatives said the union “ ey can aord to pay a lit- by magic. “Everything you can comes. In one, Councilwom- push the chamber even more spent heavily on behalf of ve tle more so the rest of us can ac- imagine is real,” he shouted, an Laurie Cumbo, a Brooklyn under the in uence of labor. candidates for the express tually get around,” he said in his quoting Pablo Picasso. Democrat, trounced Ede Fox, A sign came two days a er purpose of electing Manhat- victory speech. “For folks who e crowd in the small hall who ran on opposition to a the election, when the mayor tan Councilman Corey John- buy expensive homes, they pay roared. But to advance his planned conversion of the proposed a law to ne landlords son speaker. If he wins, Hotel a little more in taxes so tens of ideas through the state Legis- Bedford-Union Armory into whose buildings do not meet Trades’ power could surpass thousands of seniors can aord lature, the mayor would have mixed-income housing and a carbon-emissions standards the waning strength of health a place to live.” to project his voice beyond recreation center. (see page 4). care workers union 1199SEIU, But the mayor lacks the the few hard-core Democrats Cumbo, initially a supporter Real estate interests should which in 2013 helped anoint muscle to win state approval. who participate in primaries of the project, wilted during also note the impact of Council Speaker Melissa While Albany in 2014 funded and awarded him 75% of their the campaign and denounced the Hotel Trades Council on Mark-Viverito, who must leave his prekindergarten expansion, votes. It is a task he appears it. But voters’ rejection of Fox the primaries. All 26 candi- oce at the end of December. it has not let him wring more to disdain. Just before the pri- empowers Cumbo to negotiate dates supported by the small Four years ago de Blasio ran cash from the rich. In fact, vir- mary he practically admitted a compromise. ■
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SEPTEMBER 18, 2017 | CRAIN’S NEW YORK BUSINESS | 7
P007_CN_20170918.indd 7 9/15/17 2:43 PM AGENDA REAL ESTATE Cold snap Brooklyn’s Q2 median rents Bushwick Williamsburg Brooklyn New headquarters aside, $3,500
Amazon is already here $3,000 E-tailer’s current city footprint could be a selling point BY DANIEL GEIGER $2,500 s New York business and giant’s hunt since the new HQ would be economic development o - a huge economic boost even for a city $2,000 cials make headway in their as big as New York. plans to win the $5 billion Last week the city Economic De- Asweepstakes for Amazon’s second head- velopment Corp. o cially threw its $1,500 2012 2013 2014 2015 2016 2017 quarters, one of their most signi cant hat into the ring with a request for ex- data points may be to highlight that the pressions of interest that also serves as Manhattan’s Q2 median rents city has already become a major out- a guide to prospective bidders on how LES and Chinatown Central Harlem East Harlem Manhattan post for the e-commerce giant. to highlight the city’s selling points— $3,500 Two weeks ago the compa- namely, its strong economic growth, ny announced it had leased an its position as a major center of higher $3,000 855,000-square-foot warehouse to be education and its status as a hub for built on the west shore of Staten Island. Fortune 500 companies. e site will be used as a ful llment Brooklyn is already raising its hand. $2,500 center for last-mile deliveries to the Days before the request for expres- city and New Jersey. Over the past two sions of interest was released, a group $2,000 years, Amazon has also signed leases of major Brooklyn landlords teamed for distribution facil- up with Borough ities in Sunset Park, President Eric Ad- $1,500 Brooklyn, and Ridge- The EDC has asked ams and Brooklyn 2012 2013 2014 2015 2016 2017 wood, Queens, and for expressions of Chamber of Com- SOURCE: Miller Samuel is reportedly moving merce President An- ahead with talks to interest to identify drew Hoan to pitch Hot neighborhoods hit take 300,000 square potential sites. Amazon on the bor- feet or more of o ce ough. Owners in- hardest when rents cool space at 5 Manhattan Brooklyn has already cluding Jamestown West in Hudson Yards. and Rubenstein In a soft market, gentri cation can cut both ways BY JOE ANUTA e e-tailer has thrown its hat into Partners are band- about 470,000 square the ring ing together to pro- THE SLUGGISH RENTAL MARKET in In Manhattan the market was feet of o ces at 7 W. mote the borough’s Manhattan and Brooklyn appears to be tighter. Between the second quarter 34th St., meaning o ce properties, in- providing a bit of extra relief for resi- of 2016 and the second quarter of this it could soon occupy some 800,000 cluding Industry City, rather than com- dents of some of the city’s gentrifying year, the borough’s median rent in- square feet of Manhattan commercial pete against each other. neighborhoods. creased by 1.4%. space, roughly equivalent to the foot- e city’s request for expressions Median rents in Manhattan and And while rents decreased in East print it is seeking for the rst phase of of interest did not mention wheth- Brooklyn have basically remained at Harlem, another of the city’s most-gen- its new HQ that could eventually grow er it would lure the company with tax for the past year, according to data tri ed neighborhoods, the Lower East to 8 million square feet and accommo- breaks. Amazon said “incentives … to from appraisal rm Miller Samuel. Side and central Harlem saw rents rise date 50,000 workers. o set initial capital outlay and ongoing But in three Brooklyn neighborhoods by 3% and 4%, respectively. e company also recently looked operational costs will be signi cant fac- that have experienced some of the Still, single-digit decreases pale at leasing a 250,000-square-foot ware- tors in the decision- making process.” most dramatic gentri cation in recent in comparison to the dramatic rise house at 1055 Bronx River Ave. that Some observers caution against of- decades, median rents have dipped. in housing costs that already hap- had been occupied by an ABC Carpet & fering too much. Year-over-year prices were down pened in these areas. Between the Home outlet store, according to sourc- “If there are going to be tenants by more than 3% in Williamsburg 1990s and the 2010s, average rents in es. Amazon is considering the space as who will take the space anyway, why and Greenpoint, and more than 4% in Williamsburg and Greenpoint rose by a potential hub for its Amazon Fresh o er a company big incentives to make Bushwick. nearly 80%. grocery-delivery business. e compa- a move?” asked David Dyssegaard ose neighborhoods were among But the slight retreat in Brooklyn ny has also signed deals to open several Kallick of the Fiscal Policy Institute. the ve areas of the city that saw the and East Harlem shows that even bookstores. “It’s not good for the business climate most gentri cation between the 1990s modest shis in the city’s housing mar- Cities around the country have been when some companies are paying less and the 2010s, according to the NYU ket can be magni ed in gentrifying clamoring for attention in the online than others.” ■ Furman Center. neighborhoods. ■ Staten Island outlet mall will be stop for sightseeing ferry
THE DEVELOPER of a new outlet mall per year, a fraction of the more than CitySightseeing New York’s pas- on Staten Island has struck a deal to add 23 million commuters who ride the sengers, we’d be receiving a huge its waterfront location in St. George as a city-operated, free-of-charge Staten Is- bene t,” said Joseph Ferrara, a stop for a popular ferry service. land Ferry. But a majority of the riders principal at BFC. “To us, our con- BFC Partners, which plans to n- on CitySightseeing’s $35-a-ride boats nection to the harbor is a lifeline, and ates around the city. ish the 350,000-square-foot mall by are tourists, many of whom come to we want to make it as robust as we can.” “ e two most popular catego- April, said that hundreds of thousands New York to shop. e ferry service is run by a part- ries for our customer base are Broad- of additional shoppers could visit the A survey conducted by the ferry nership between tour bus operator way shows and shopping,” said David retail project now that CitySightseeing operator found that 80% of custom- CitySightseeing and ferry company Chien, CitySightseeing’s head of global New York has agreed to include it on ers want the option of visiting the new NY Waterway. e group has been able integrated marketing and media. “ is its route from Manhattan’s Pier 78 to mall and other planned nearby attrac- to popularize its ferry routes by mar- extends our current reach to some- Lower Manhattan and Dumbo. e tions, such as the New York Wheel. keting it to tour bus riders and at the thing we feel our customers and visi-
COURTESY OF CITYSIGHTSEEING ferry carries about 650,000 passengers “Even if we tapped into just half of 50 concierge desks the company oper- tors to the city will want to see.” — D.G.
8 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 18, 2017
P008_CN_20170918.indd 8 9/15/17 7:04 PM AGENDA VIEWPOINTS
Blame term limits for low DEMOCRATIC MAYORAL PRIMARY TURNOUT
turnout and lopsided races 50% Forcing of ceholders out has hurt city’s democracy, but voters like it 40% 14%
BILL DE BLASIO won encourages city politicians to be 30% the Democratic pri- excessively cautious because it mary for mayor last guarantees that if they wait, they will not 20% week with an over- have to face an incumbent when they whelming 74% of the seek higher o ce, be it the City Council, vote. e polls say the comptroller, public advocate or mayor. 10% incumbent leads his is year, for example, Comptroller Republican challeng- Scott Stringer spent months guring 0 GREG DAVID er, Assemblywoman out if challenging the mayor was a 2001 2005 2009 2013 2017
Nicole Malliotakis, by gamble worth taking. He decided it was SOURCE: NYC Board of Elections 35 percentage points. not. When he ran for a second term Yet, only 49% of New Yorkers have as comptroller, no one campaigned a favorable view of the mayor. Most against him. e mayor and Public fourth term a er four years of scandal So term limits have made city of them stayed home for the primary: Advocate Letitia James faced only token did he attract formidable opponents. elections less competitive, but not by A paltry 14% of registered Democrats opposition. It was simply voters’ anger over the much. Because New Yorkers say they went to the polls, the second And not a single incumbent temporary suspension of term limits like term limits, the only hope is that the lowest in the party’s last ve lost in the primary. that made Comptroller Bill ompson city will be able to get o the treadmill mayoral primaries. Before we get too carried a strong candidate in 2009. of everyone being term-limited at the Something is clearly wrong away about term limits, keep in Money also matters, but it always has. same time. with politics in New York. I mind that incumbents always Today candidates need to gather small Maybe we will be lucky and the next 0NUMBER of in- talked to several dozen people had an advantage unless contributions from residents to qualify comptroller will retire a er one term. this summer for an in-depth cumbents who voters had a reason to oust for the big matching dollars available Or borough presidents will leave o ce story on the mayor’s rst lost last week them. Mayor Ed Koch faced from the city’s public nance system. for the private sector. Or maybe a mayor term, to be published next very marginal competition in is is much easier for incumbents. But will resign to take a job in Washington. week, and over and over again his 1981 and 1985 re-election o ceholders also had the advantage Hope springs eternal. ■ I was told term limits have ruined campaigns, as did Mayor Rudy Giuliani in the past because they spent years democracy in the city. in 1997 and Mayor Michael Bloomberg courting the big donors—real estate GREG DAVID blogs regularly at Political scientists say the system in 2005. Only when Koch tried to win a interests and municipal unions. CrainsNewYork.com.
Only one city checks
all of Amazon’s boxes JUST LOOKING: The internet giant is NY oddly missing from talk about retailer’s next home BY CARLO A. SCISSURA shopping for a second headquarters.
hen Amazon an- in Brooklyn and Columbia’s rapidly ex- nounced last week its panding Manhattanville campus. intent to build a sec- What about proximity to mass tran- ond headquarters, in sit, highways and international air- additionW to Seattle, it set o a frenzied ports? Check, check and check. Arts round of speculation regarding which and culture, entertainment and rec- city would ultimately land the tech be- reational resources? New York easily hemoth and the 50,000 new jobs it is ful lls all of those requirements as well. promising. It is also worth considering why A number of articles were prompt- Amazon is in the market for a second ly published touting a wide range of home. e company recognizes the North American cities, including Den- need to grow, while also understand- One idea that has been discussed in- is moving to Brooklyn and why more- ver, Chicago, Boston and Austin, Texas. ing that its original home in Seattle volves several developers joining forces traditional rms, such as Aetna, are Curiously, New York, the most di- cannot possibly accommodate another in Brooklyn, and I’m con dent there moving their headquarters to the city. verse city in the country with more 50,000 jobs and $5 billion in new in- are similarly innovative concepts in the ese rms have determined that than 800 languages spoken as well as vestment. Obviously there would be no other four boroughs. they can’t a ord not to have a foothold the home to more Fortune 500 com- such issues with New York, which has Amazon, which is building a massive in a city that has become a magnet for panies than any city on the planet, has absorbed more than 100,000 new jobs warehouse on Staten Island and growing the world’s most creative, innovative been an a erthought in these articles, during the past 12 months alone and its o ce footprint in Manhattan, knows and entrepreneurial minds. ey also despite meeting all of Amazon’s criteria constructed more than 90,000 units of the unique advantages that this global realize that no other location in Amer- for a second home. housing over the past three years. city has to o er its employees, custom- ica can match New York’s combination Amazon wants to be in a location ere are sites in each of the ve ers and community. Plus, its commit- of talent, culture, accessibility, diversity, with more than 1 million people? boroughs that Amazon could comfort- ment to diversity and sustainability is in mobility and business ecosystem. Check. It needs a diverse and highly ed- ably call home—locations that could be perfect harmony with New York’s ethos. At the end of the day, New York ucated workforce? Not a problem in the developed immediately and at a com- It is for these very reasons that should be considered the odds-on fa- Big Apple, which boasts half a million parable cost to other U.S. cities. Each many of the world’s most successful vorite because it’s the only place that higher-ed students at more than 100 already o ers a multitude of transit tech rms, including Google, Face- checks all of Amazon’s boxes. ■ colleges and universities, including the and housing options, and could easily book and Spotify, are growing by leaps new Cornell Tech on Roosevelt Island, support Amazon’s initial space require- and bounds in New York. It is why Carlo A. Scissura is president and CEO
BLOOMBERG NEWS NYU’s Tandon School of Engineering ments and future growth projections. United Technologies’ new IT division of the New York Building Congress.
SEPTEMBER 18, 2017 | CRAIN’S NEW YORK BUSINESS | 9
P009_CN_20170918.indd 9 9/14/17 6:14 PM AGENDA THE LIST NEW YORK AREA’S LARGEST EMPLOYERS Ranked by number of metropolitan–area employees
NUMBER OF NUMBER OF COMPANYWIDE NEW YORK–AREA EMPLOYEES1 EMPLOYEES COMPANYWIDE1 REVENUE (IN BILLIONS)2
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10 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 18, 2017
P010_CN_20170918.indd 10 9/14/17 7:05 PM BETTER OUTCOMES How an insurer and a physician group became aligned in comprehensive care
ith some 500,000 patients under a responsibility we take very seriously. Policy My pure love is making sure populations are its care at 36 sites in Manhattan, leaders are now talking about population health, healthy. Our care teams coordinate care with W Brooklyn, Staten Island, Queens and but EmblemHealth and ACPNY have actually been our physicians, who are supported by medical on Long Island, AdvantageCare Physicians is one doing population health for decades. assistants, nurses, patient-service representatives of the area’s largest primary care and specialty and others who circle around the patient. Our care groups. About half of those patients are insured Rodriguez: You are absolutely right about the teams huddle daily ahead of office visits to review by EmblemHealth, whose nonprofit health plans alignment between ACPNY and EmblemHealth. what those patients need, whether it is refills, serve more than 3 million people. This second We have a true commitment to managing the education or more testing. If a diabetic patient installment of the five-part Better Outcomes health of New Yorkers, making sure health care needs their eyes screened, or a nutritionist, the series features a conversation between Karen is accessible, comprehensive, coordinated and team puts those pieces in place before the visit. Ignagni, EmblemHealth’s president and chief cost-effective. Population health is providing Anticipating preventative services lets patients executive and Dr. Navarra Rodriguez, president comprehensive care while promoting wellness get everything done quickly and easily. But and chief medical officer of AdvantageCare and prevention. It’s managing chronic conditions, the huddle time also is used to address social Physicians (ACPNY). Rodriguez, an internist, educating patients about effectively accessing determinants of health, to identify patients who oversees health improvement activities health care, and being good stewards for live alone or need help in managing their care. such as care coordination, population health affordable and accessible care. We’re relying management and health informatics. on data to close gaps in care. Our providers are Ignagni: You’re now talking to a number of other making a difference by leveraging technology, payers about value-based care and population Rodriguez: AdvantageCare Physicians is focused working in care teams and connecting to patients health with their members, moving from fee-for- on population management in a primary care on a personal level. service reimbursement to value-based. and specialty care arena. We have pediatricians, OB-GYNs, cardiologists, gastroenterologists, Ignagni: That’s something I’ve experienced. I Rodriguez: Correct. Through working with podiatrists, ophthalmologists, hematologists, get my primary care at ACPNY’s Flatiron office. EmblemHealth, and embracing population health, oncologists, nutritionists. We’re embedding But I was up in Harlem recently, and one of we know from a data-sharing perspective how behavioral health into our offices as well. I think the doctors was kind enough to see me for a to move the needle to help other payers improve it is unique in the New York market to have such sinus infection. He was terrific! He just logged care for their total patient populations. Clinical a large medical practice—not just primary care, into to my electronic health record, and then informatics is where there’s a lot of alignment but our whole breadth of specialties, our entire bugged me about needing a mammogram. I very between EmblemHealth and ACPNY, sharing data team—look at how we can coordinate care much appreciated the reminder, as I have been to address gaps in care, as well as affordability. We and manage populations. A patient seeing an postponing it. What you’ve created at ACPNY have several initiatives that look at the effective ophthalmologist who has a gap in care—maybe is the concept that data and personal medical use of generic medications, and how patients can she hasn’t seen her primary care doctor in a records follow the patient. save money but get excellent care and outcomes. while, or needs a mammogram—is tied back From the provider perspective, comprehensive to the practice when the gap is identified. Our Rodriguez: Your mentioning of electronic health care is only as good as the data behind it. teams work to ensure patients are getting records (EHR) is very important. The EHR is our comprehensive care, and they are coordinating most powerful tool for capturing data. Our patient Ignagni: The health care delivery system grew between primary care and specialty care, and portal allows us to engage the patients in a timely up in a fee-for-service structure. While it is easy between ACPNY and our hospital partners. fashion; patients can login to communicate with to talk rhetorically about moving from volume to their doctors and care teams, see results, schedule value, operationalizing that is difficult. As more Ignagni: One reason I wanted to come to appointments or access patient education. It is just people in the hospital and physician communities EmblemHealth was its unique partnership with a wonderful way to connect to patients, anytime, to see what ACPNY provides, you’ll be a beacon for ACPNY. Together we identify members who need make care accessible and convenient. what the delivery system could become in time. early intervention and care coordination. The You are building the future. EmblemHealth legacy is not only as an insurer, Ignagni: Patients can put their hands on their lab but as a provider of medical care through health results when they need them, so if they are going Karen Ignagni centers. Our partnership with ACPNY hails from to another practitioner they can bring the latest CEO of EmblemHealth that long tradition, and we’re excited about labs or x-rays so you don’t have to repeat them. Chairwoman, National opening new offices. Last year it was Duane Board of Advisors Street, very close to City Hall, a center designed Rodriguez: We are leveraging technology so for Health Policy so that city employees who work hard keeping when a patient goes to an ER we can share and Management at our city going night and day had access to information with our hospital partners. It was Columbia University’s preventative, acute care and pharmacy services great for me yesterday, when I saw a patient who Mailman School of very close to their workplace. The same is true at had been hospitalized, to be able to pull clinical Public Health our center right next to Brooklyn Borough Hall. information from the EHR so I didn’t have to Contributing Guest Editor Our newest site opens early next year in East repeat tests. I had everything right there. New York and will accommodate some 100,000 annual patient visits. This Brooklyn neighborhood Ignagni: You not only lead our medical team but has been labeled a health care desert. We’re also practice one day a week as an internist? helping improve the health of this population by giving ACPNY resources to support that mission, Rodriguez: Yes, to keep in touch with patients.
ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS S1
Emblem Health Better Outcomes Sept 6 D.indd 1 9/14/17 4:40 PM AGENDA THE LIST NEW YORK AREA’S LARGEST EMPLOYERS
NUMBER OF NUMBER OF COMPANYWIDE NEW YORK–AREA EMPLOYEES1 EMPLOYEES COMPANYWIDE1 REVENUE (IN BILLIONS)2
7A19H23F !3P(BE8 7GR )A2 !)FF)H $H44B98 )A2 '3FG163FG3E 1BHAG73F 7A !3P(BE8 )A2 3E53A FF3Q H2FBA )A2 &A7BA 1BHAG73F 7A !3P 3EF3R HF3F FG)44 E3F3)E16 3QG3AF7I3 FHEI3RF )A2 G63 @BFG 1HEE3AG E343E3A13F )I)79)093 GB CEB2H13 7GF97FGF 0HGG63E3 7F AB 5H)E)AG33 G6)G G63F3 97FG7A5F )E3 1B@C93G3 %B DH)974R 4BE G67F 97FG )A BE5)A7S)G7BA @HFG 6)I3)A B4T13 BE BG63E 4)1797GR 7A G63!3P (BE8 )E3) &A93FF BG63EP7F3 ABG32 7A4BE@)G7BA P)F FHCC97320RG63 BE5)A7S)G7BAF BE E3GE73I32 G6EBH56G637E 4BE@F H99G7@3 )A2 4H99G7@3 3DH7I)93AG )F B4 31 HA93FF BG63EP7F3 ABG32 BE 5BI3EA@3AG BE5)A7S)G7BAF BC3E)G7A5 0H253GF )E3 F6BPA 99 T5HE3F )E3 4BE G63 4B99BP7A5R3)E 3A232 HA3 '7G6G63 3Q13CG7BA B4 G63 3C)EG@3AG B4 2H1)G7BA )99 @)RBE)9 )53A173F )E3 7A19H232 99 T5HE3F )E3 4BE G63 4B99BP7A5R3)E 3A232 HA3 7F1)9 R3)E 3A2F )E16 99 4HA2F GBG)9 E3137CGF %BG)9 BC3E)G7A5 E3I3AH3F 3Q19H27A5 E3I3AH3F E39)G32 GB 3GEB"9HF 3)9G6 "9)A 3FG7@)G3 7F1)9 R3)E 3A2F H5 B1)9 3@C9BR33 T5HE3F )E3 4BE !3P(BE8 FG)G3 !3P(BE8)E3)3@C9BR33T5HE3F)E3 3FG7@)G3F 7F1)9R3)E3A2FHA3#3F3)E163E)92$1674@)A
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12 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 18, 2017
P012_CN_20170918.indd 12 9/14/17 7:00 PM HALL2017 of
This year’sFAME six inductees have one thing in common: They each left the city better than they found it INTERVIEWS BY GREG DAVID
PHOTOGRAPHS BY BUCK ENNIS
SEPTEMBER 18, 2017 | CRAIN’S NEW YORK BUSINESS | 13
P013_P016_CN_20170918.indd 13 9/14/17 2:42 PM P013_P016_CN_20170918.indd 14 HALL OFFAME PHOTO CREDIT 14 |
CRAIN’S NEWYORKBUSINESS J all over the world nowforourdanceschool. all over theworld We have grownwiththecity. People comefrom How hasthecity’s ascentbene ted thecompany? gets tobemore, Ihaven’t thefaintestidea. real estate, allareasoflife.Howthat exposure excellence we arenotaware of—inscience, are many peopleinnooksandcranniesof We aregettingthereslowly, slowly. very There were justnotvisible. Isthatstilltruetoday? In 1990youwrotethataccomplishedblackwomen another company like that. We ownit.We have anendowment.Nameme take anotherleapforward inourglasspalace. Battleto directorRobert artistic of current of Manhattan]becausethedetermination 77,000-square-foot building[ontheWest Side opening 10,000squarefeetaddedtoour Yes, Ido.amproudtosay inOctoberwe are conglomerate. Doyouagree? The Alvin Ailey American Dance Theater isdescribedasanarts ofdance. the African-Americanpeoplethroughworld of have thestory adoorthatisopentoallunderstand is.You dancerepertoire stand whatmodern wouldn’t the Divinetohonorhim.WithoutAlvinwe wouldn’t under- atSt.John Some 5,000peopleshowed upataservice How doyoumeasurehisimpact? to respecttheirwishes. agodidn’tHis family27years want itmentioned.Ihad In your1990memoir, saidhediedof younever AIDS. Why? Wewe hadtothrive. hadtodomorethansurvive. tradition ofdancethathadbeendeveloped. We allknew generation hadtorelyonthemselvescontinuethe We lostsomany dancers, andthatmeantthenext diedof Ailey AIDS, asdidothermaledancersinthe company. pany, andwe were allgivenresponsibilities. his successor. Buttherewere only10ofusinthecom- notpreparing everything, running He was wholeheartedly How did director? prepareyoutobecomeartistic Ailey name intheheadline.Thathadn’t happenedbefore. next day oftheTimeswroteareview CliveBarnes withmy tain camedownasIwas lyingonthe oor exhausted.The premiered, theaudiencescreamedforever afterthecur- since 1965andhadreceivedaccolades.Buttheday Cry called ballet By thegraceofGodIwas therewhenAlvincreateda How didyoubecometheforemostdancerin America? stuck withhimthroughthickandthin. intheworld,some ofthemosttalenteddancers who experience inthiscountry. To celebratethat, heengaged wasthat histruth aboutcelebratingtheAfrican-American Alvin was ageniusaschoreographerwhounderstood How didyourcollaborationwith Alvin happen? Ailey JUDITH JAMISON cultural forceinNew York. 74, directoremeritaofthethriving sheisartistic with anoperatingbudget of$40million. Now dancecompany leadingmodern the country’s , director of Alvin Ailey American Dance Theater,of AlvinAiley American director Ailey andthensucceededhimasartistic dancer intheU.S. underthetutelage of Alvin udith Jamisonbecamethemostrecognized
| 2017 in1971.Ihadbeenthecompany Cry
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SEPTEMBER 18,2017 ARTS ■ DOSSIER spinning aroundandaround.’’ like ahamster inoneofthosewheels this before, not justblackpeople.We are is nothingnew. We have allbeenthrough more whenIamwatching performances.’’ it’s awonderfullife. And Idon’t twitchany emeritus. Iammindingmy business, and AND NOW THE STATE OFTHECOUNTRY WHO SHEIS enormous expansionofthedancetheater.enormous director sheoversaw an As artistic sponsoredbytours theStateDepartment. performed allover theworld, originallyon her for company. hisstruggling Shehas dancing inNew York whenAiley hired growing upinPhiladelphiaandwas
“Iamme, thedirector Jamison discovered dance “This “This 9/14/17 2:19 PM
PHOTO CREDIT P013_P016_CN_20170918.indd 15
PHOTO CREDIT R ROBERT DENIRO production intheUnitedStates. has helpedmake New York acenterfor lm and TV Now 74, thetwo-time Academy Award–winning actor scene when hehelpedfoundthe Tribeca Festival. Film Manhattan’s economyandcreatinganew cultural way Icould. things forthecity—helpedit inany positive That Ihelpedthecity. ThatIcontributedgood What isyourlegacyforNew York? what itis. I gotothathave justchangedcompletely. Itis since thedays ofTaxi Driver.Thereareplaces They say itismorecleanedupandgentri ed Is thecityabetterplacethanitwas? New York, becauseIwant tobeinNew York. ing inNew York, isnotabout even ifthestory aboutNew York.a story Ialways prefershoot- wants toshoothere,Everyone especiallyifitis Why isthecitynowacenterfor lm andtelevision? areas, includingsomethingsIdon’t even understand. isalwaysis different.Ours changing, moving intonew are otherfestivalshere, andthey areallgreat, butTribeca There was aneedforitinthecityandDowntown.There Why hasitbeensuchasuccess? creditforgettingitdonedespitethedif deserve culties. her husband[atthetime], Craig[Hatkoff]; andtheteam away, andweprettyquickly. gotitupandrunning Jane; town.” andotherpeoplegotinvolved Scorsese right Marty attacks happened, we said, “Let’s dothistohelpDown- before Sept.11—notseriously, Whenthe justinpassing. Jane RosenthalandIhadtalked aboutdoingafestival Where didtheideafor Tribeca Festivalcomefrom? Film movie, Lancaster as a newspaper columnist]. For another typeof Oh, Idon’t Burt know—SweetSmellofSuccess[starring What isyourfavoriteNew York movie? the scriptbecausewe beingalone. couldunderstand associatedwiththeprojectconnectedto and everyone you canbealone.IrememberwhenreadTaxi Driver,I like New York. Andyeteven thoughyouareaNew Yorker, I like thecommunities.Ithinkthat’s why alotofpeople I like New York. Ilike walking around.Ilike theanonymity. How didthecityshapeyouracting? want toexpressyourself.’’ Isaid, “That’s right.” an actor?”Isaid, “I’mnotsure.” Hesaid, “Becauseyou asked methesamequestion:“Why doyouwant tobe Workshop actingschool, andtheheadofschool night school.WhenIwas 16, Iwent totheDramatic Eventually Iquitschooltostudyfulltimeandwent to and thenwhenIwas 16Istudiedmoreconsistently. I wanted tobeanactorwhenIwas 10.Iquitforawhile, Why acting? inblack-and-white. streets. Ihave thatmemory pulledby oncobblestone ahorse a vegetablecart onHoustonStreet,In theVillage I’d seesomeonewith What wasitlike growingupinNew York inthe’40sand’50s? Breakfast at Tiffany’sBreakfast [writtenby Truman Capote]. attacks, hehadahandinreviving Lower cally acclaimedrole. Following theSept. 11 has broughtthecitytolifeinroleaftercriti- DeNiro,obert New aborn-and-bred Yorker, ■ ENTERTAINMENT DOSSIER to beremoved.” andwith Trump. Heneeds country to seewhatishappeningwiththe and we’d doit.” say, let’s dothisandlet’s dothat, has beenresponsiblefor a lot.She’d PLANNING TORETIRE? OUTSPOKEN CRITIC BUSINESS PARTNER BIGGEST BREAK What elsewouldIdo.” Part II. Part inTheGodfather: Corleone young Vito The role of the Theroleofthe “Jane Rosenthal “JaneRosenthal “It is upsetting “It isupsetting “No. “No. SEPTEMBER 18,2017 |
C RAIN’S NEWYORKBUSINESS |
15 9/14/17 2:20 PM WILLIAM BRATTON PUBLIC SAFETY
orn in Boston, 69-year-old William Bratton was head of New York’s transit police before becom- ing police commissioner— rst under Mayor Rudy Giuliani and 20 years later under Mayor BBill de Blasio. He is the architect of policing strategies that helped make New York the safest big city in America.
Is the unprecedented decline in crime in New York a result of demographics or the policing strategies you instituted? For the great crime decline that New York has experienced for 27 years—27 straight years—you have to blame the cops. Cops matter. Police matter. They have been the single most important factor in that reduction.
You didn’t last long in your rst stint in New York, yet your changes took hold in the department. Why did that happen? I would describe myself as a transformational leader, some- one who transforms organizations and cultures and does so quickly, as I did in the 26 months I spent with Mayor Giuliani. I like to create the change, institutionalize it, select the leadership that’s going to follow me and then move on.
What is your transformational strategy? Effective policing is all about collaboration: understanding what the cops want, what the public wants, what the political leadership wants, and then trying to nd common ground.
Why did you return as commissioner under Mayor de Blasio? New York was un nished business for me. The second time was a great time. We had a lot of money to work with, a lot of mayoral support. The department was used to winning, though it was in tough straits in 2014 with the stop-and-frisk controversy and a lot of racial tension in the country. We came through it and had crime going down every year.
Did you and the department abandon broken-windows policing? Mayor de Blasio is misunderstood on broken windows. He is a strong supporter of the concept, but it must be applied in a correct amount, like being treated for cancer—a doctor can kill you with chemo and radiation if he doesn’t give you the right amount. The previous administration had been applying too much medicine. This year there will be about 20,000 documented stops versus 700,000 a few years ago. Yet crime has gone down every year.
What is broken-windows policing exactly? DOSSIER The basic mission of police is to prevent crime and disorder. In the ’70s we gave up trying to prevent THE EARLY YEARS The product of a working-class family, Bratton joined crime and deal with disorder. In April 1990 I came the Boston Police Department in 1970, down from Boston to take over the chaos of the beginning a meteoric rise. subways. We continued to focus on signi cant crime, BIGGEST BREAK Being tapped by but we spent a lot of time on disorder—fare evasion, Giuliani to become New York police urination, the 5,000 homeless living in the subways. commissioner in 1994, when crime was What happened? Crime went down by 25%. crippling the city. INSPIRATION Former Boston Police What regrets do you have? Commissioner Robert diGrazia. “He was I would have gotten along better with Mayor Giuliani. brought into the Boston Police Department We were both at fault—very different management in 1972. It was very brutal, incompetent styles. I haven’t had a similar issue since then. and racist. He transformed it, seemingly Maybe it was a maturation process. overnight, and provided an opportunity for me to become the top uniformed of cer What is the lesson of New York’s success in recent decades? within ve years. I saw how one person If you make it safe, they will come. The city is a could make such a difference in such a short time.’’ boomtown because it has been made safe. This year there will be fewer than 100,000 reported crimes— PUBLIC SERVICE AGAIN? “My public- one crime for 85 people. In 1990 it was one for every sector days are over. Teneo Risk [where he is executive chairman] is a company 16 people. What a change! In 1990, 2,243 murders; focused on the CEO world. It’s a world I this year we are headed to 285 to 290. Five thousand think I know, since I had an organization people shot in 1990; fewer than 1,000 this year. with 50,000 people. I am enjoying it.’’ A miraculous turnaround. ■
16 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 18, 2017
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CN018318.indd 1 8/2/17 12:06 PM HALL OF FAME | 2017
MERRYL TISCH EDUCATION
erryl Tisch spent two decades on the state Board of Regents. As chancellor she led the effort to raise standards, shaking up the educational establishment with a focus Mon underperforming schools and students. Tisch, 62, is married to nancier James Tisch. One of the city’s most prominent business and civic couples, they recently gave $20 million to the New York Public Library.
You began as a schoolteacher. Were you good at it? I was actually a really good teacher. I always thought that if you go into teaching and you teach children how to read, you make a real difference in their lives. I focused on rst grade, and the kids in my class called me Tough Tisch. I never allowed anyone to leave my class without being able to read.
How did that experience shape your efforts in education? When you speak about something in a forceful way, you should know something about it. What I learned in those years in the classroom and from many different endeavors involving children is that we need to provide opportunity for kids in dif cult circumstances.
What was your mission when you became chancellor in 2009? It was clear to me that standards that were being used in the classrooms across New York state were not preparing kids in any way, shape or form to be part of the 21st-century economy—especially those from minority communities. The time line was urgent. You are looking at a future where the minority is becoming the majority, and if we don’t change the educational system, we could have a majority that is unedu- cated in terms of 21st-century competencies.
Enormous controversy accompanied your efforts. Did you succeed? The standards have taken hold. It took time to get the teaching force up to date to deliver on those standards. But all the noise that you hear around it is just the noise at the edges. No one is pushing back against the standards them- selves. Unless you guarantee that every kid gets a shot at those standards, you do them an enormous disservice.
What would you have done differently? I would have had the conversations with parents and teachers on my own. I found that if I went into a community and talked to parents directly, I never got any pushback. I should have been part of those DOSSIER conversations in a more rigorous way. TWO TISCHES She is the second Tisch The city education budget is $20 billion. Why don’t we get family member named to the Crain’s Hall of Fame. Jonathan Tisch (James’ rst better results? cousin) was inducted with the inaugural There are regulations and rules about everything, class in 2014. and they are costly. If you said to a private com- ACROSS THE TRACKS Tisch grew up pany, “I’m going to give you $20 billion a year to the daughter of a rabbi; her husband, run the New York City school system,” they would the son of a wealthy businessman. question how the money is allocated. “I was the girl from the wrong side of the tracks. When two people from disparate What needs to change? backgrounds [marry and] can hear each We have to pay our teachers more if we want other, it makes for a privileged life of great to attract the right people into the pool, and opportunity.” in exchange we would get a longer school day FATHER FIGURE She was 16 when she and a longer school year. met her husband and his father, Laurence, who died in 2003. “He always encouraged You and your husband just gave $20 million to the New me to serve the community, but the last York Public Library. Why? thing he said to me before lapsing into a coma was, ‘Don’t ruin it all by running for Libraries are the great equalizer. When I was a little public of ce.’” girl, my grandmother took me to the library every AND NOW She recently joined the SUNY week. I couldn’t afford the books that my friends board of trustees. She plans to remain in private school had. I went for after-school class. active in philanthropy and the charter I went for everything. Libraries can ll the gaps school movement. that exist. ■
18 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 18, 2017
P018_P020_CN_20170918.indd 18 9/14/17 4:10 PM MARTIN LIPTON LAW
artin Lipton graduated from the Wharton School intending to work on Wall Street, but he decided to try law. Today the 86-year-old is one of the country’s foremost corporate Mlawyers, perhaps best known as the architect of the “poison pill” strategy, which helps corporations ward off hostile takeovers. In 1975 he helped save the city from bankruptcy.
Why law? The range of issues, from mundane contracts to criminal law to constitutional law. I became fascinated and did well at it.
You say being a corporate lawyer—a boardroom lawyer in your parlance—is as exciting as litigation. Why? No two things are exactly alike. I do deals—mergers and acquisitions. I defend companies against hostile takeovers. I defend them against activist attacks. I deal with corporate crises. Every board of directors is different. It’s something new, something challenging each time.
You are best known for inventing the “poison pill.” How did you do it? As the 1970s progressed and junk bonds came into play, it was getting more and more dif cult to defend a company against a hostile takeover. I tried to come up with something a company could do to give it time to deal with a takeover or remain independent. One day I was reading the provisions of a convertible debenture, and I read about the nondestruc- tion clause that preserves value in the event of a merger. It occurred to me that I could dividend out to the shareholders warrants that had a nondestruction provision and a favorable exercise price. If the company was acquired, the acquiring company would pay a much higher price than it offered.
Critics say the strategy entrenches bad management. All it does is level the playing eld between a hostile acquirer and the company. It gives the board of directors the opportu- nity to make a business decision not under pressure to act quickly. My experience over all of these years is that generally boards of directors act in the best interests of shareholders— not necessarily the short-term interests of some shareholders but the long-term interests of all shareholders.
You are no fan of activist investors, but they seem to be winning. They certainly are growing. They have more than $100 billion under management. Some of their activity is appropriate. But short-term activism puts undue pressure on companies and deters them from making investments for the long term. This has DOSSIER been a major factor leading to inequality. The WHY HE’S DIFFERENT Wachtell, Lipton, average worker in these companies suffers Rosen & Katz has no formal partnership the most, and there is a transfer of value from agreement, has always operated from one employees to shareholders. of ce in New York and is much smaller than its rivals. Yet it is one of the leading Since you mentioned inequality, do CEOs make too rms in its eld of corporate law. much money? MENTOR Edward Weinfeld, a federal CEOs should make money in reasonable relation- judge in the Southern District of New ship to the value they create. Some do not do a York. “He was a unique person, a fabulous good job and are overpaid. Some do a good job judge who treated his clerks like they and are well-paid but nowhere near as much as a were his children. He did that with all his reasonable relationship to what the shareholders clerks.” have received. The market should sort out what a PROUDEST MOMENT “I may be particular profession should be paid. It’s a good proudest of our work in 1975 acting as question, but I also think this is a good answer. counsel to the city in connection with the nancial crisis and working out the You have given time and money to New York University, agreement with the federal government on temporary nancing, the agreement especially the law school. Why? on the rollover of debt and in the sale of The law school is my rst love. It set me off on bonds to the pension funds.” a career that I have enjoyed. Educational institu- RETIREMENT PLANS? “No, I am not tions will only exist if the people who bene ted interested in retirement.’’ from them support them. ■
SEPTEMBER 18, 2017 | CRAIN’S NEW YORK BUSINESS | 19
P018_P020_CN_20170918.indd 19 9/14/17 4:17 PM HALL OF FAME | 2017
LARRY SILVERSTEIN REAL ESTATE
arry Silverstein joined his father’s real estate company after graduating from New York University. When his father died, he became co-partner with Bernard Mendik, but the two Lsplit in 1977 in part because Mendik operated more conservatively. Silverstein was 70 when the Sept. 11 terrorist attacks brought down the Twin Towers. Now 86, he has spent most of the intervening years overcoming obstacles to rebuild the World Trade Center site.
Your involvement Downtown began at 7 World Trade Center. The Port Authority issued a request for development of the site. I won it. I remember at the topping-off ceremony looking across at the Twin Towers and thinking it would be incredible to own them. Never did I dream that Gov. George Pataki would call in 1998 or 1999 and ask me if I wanted to own them.
Where were you on Sept. 11? I was home dressing to go to the towers, because every weekday I went to a breakfast meeting at Windows on the World with a tenant and then would go and visit other tenants. The morning of Sept. 11, my wife said I had an appointment with a dermatologist, something I need to do because of my fair coloring. She got upset because I had canceled the two previous ones. When you are mar- ried to the same woman for 45 years and she gets upset, you immediately say, “I’ll do whatever you want me to do.”
When did you realize how extensive the damage was? The damage was instantly obvious. After a few days thinking about it, I decided that the attacks were an unmitigated disaster and we couldn’t leave the area like that. The towers were Downtown’s economic locomotives.
Mayor Rudy Giuliani wanted to preserve the site as a memorial. I said to Rudy, “We have the most incredible mass transit here. You can’t let this lie fallow. Create an appropriate memorial, but don’t leave the entire site vacant.”
Why start with 7 World Trade Center? We focused on 7 because there had been ample time to empty the building, and no one had been killed in it. Even- tually Moody’s signed a lease for 750,000 square feet.
What was the biggest hurdle of the rebuilding project? The insurance companies that didn’t want to pay. We were ghting 22 of them, and they employed almost 22 law rms. Enormous amount of time consumed—four or ve years. [After hiring the law rm of fellow Hall of Famer Martin Lipton,] we won a verdict of 1.5 times [the face value of the insurance], and that was con rmed on appeal, but we couldn’t collect. When Eliot Spitzer became governor, I called him DOSSIER and asked for help. And six months later he got the insurance companies to pay, and an enormous OTHER HOLDINGS Silverstein Properties burden was lifted. has developed, owned and managed more than 40 million square feet of of ce, Why did you persevere? residential, hotel and retail properties including 1177 Sixth Ave., 120 Broadway, I felt an enormous obligation to the city of New 120 Wall St., Silver Towers and River Place. York that we needed to rebuild the 10 million square feet of of ce space that was here. I’d also PHILANTHROPY NYU has been at the center of Silverstein’s philanthropy. He signed an obligation in the original agreement that founded the school’s real estate institute said if anything happened to the buildings in the and served as a trustee of the medical next 99 years, I would replace them with like kind center. He’s also contributed to and served and like quality. in positions at a series of Jewish charities. WHEN HE’LL RETIRE “When the World Do you have any regrets? Trade Center project is completed.” I wish we could have done it more swiftly. ■
20 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 18, 2017
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C T Corporation ny, NY 12207-2543. DE addr. of LLC: served and shall mail copy of process against the LLC served upon him/her System designated as agent upon 251 Little Falls Dr., Wilmington, DE against LLC to: Marc Reibman, 26 is: 7014 13th Avenue, Suite 202 Brook- whom process against it may be 19808. Cert. of Form. filed with Secy. Court St #1808, BK, NY lyn, NY 11228 The principal business served. SSNY to mail copy of process of State of DE, Div. of Corps., 401 Fed- 11201.Principal business address: address of the LLC is: 540 West 49th to The LLC, 111 8th Avenue, New eral St. - Ste. 4, Dover, DE 19901. 212 Warren Street, New York, NY Street #CY7N NY, NY 10019 Purpose: York, NY 10011. Purpose: Any lawful Purpose: Any lawful activity. 10282 Purpose: any lawful act any lawful act or activity act or activity.
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SEPTEMBER 18, 2017 | CRAIN’S NEW YORK BUSINESS | 23
P022-23_CN_20170918.indd 23 9/15/2017 11:50:55 AM GOTHAM GIGS
SUNDAY BEST: Slate persuades lmmakers to rent her clients’ distinctive BY LANCE PIERCE locations, such as First Presbyterian Church.
Shooting for the stars A PR maven nds a showbiz niche representing properties, not people
allie Slate was working at the American Museum represents businesses and nonpro ts that want to rent their of Natural History in 2004 when a location scout buildings for location shoots. Her growing list of clients, SALLIE SLATE asked her if the institution would star in a movie which includes First Presbyterian Church in Greenwich about a museum where the artifacts come alive at Village and a number of apartment buildings in Washing- AGE 64 Snight. It took some time for the longtime public relations ton Heights, pay her 20% of their location fee to negotiate BORN Upper East Side executive to win over the museum’s scientists, who were the contract and supervise the shoot. Slate said locations LIVES Murray Hill upset that the lm would depict dinosaurs are typically paid $10,000 to $30,000 per day. roaming the halls during o -hours. But they Gregarious and straightforward, Slate eas- EDUCATION Bachelor’s in Letting a lm anthropology, Sweet Briar College acquiesced, and Ben Stiller’s Night at the Mu- “ ily gets along with lm crews and smooths GREAT IMPRESSIONS Slate was seum became an international blockbuster crew come the rued feathers of residents hassled by head of PR at Barnard College that boosted the museum’s brand, helped in is like lming. She also knows the city like the back when Ellen Futter was president. grow attendance by 25% and brought in welcoming of her hand, having grown up in Manhattan After Futter became president of more than $1 million in additional revenue. an invading and attended private schools Brearley and the American Museum of Natural Slate was put in charge of the museum’s Spence. History, she recruited Slate to join her. participation in the lm—and others that army” Slate has brokered roughly 60 shoots since followed, including Spider-Man 2 and Find- 2004, including those for NBC’s e Blacklist; PUSHY PUPPY OWNER Once tried to get her beloved Australian ing Forrester. She negotiated fees and contracts and was on Anne Hathaway outside the black-tie gala at the natural shepherd, Miss Murray, a lm role, site for the shoots. “Letting a lm crew come in is like wel- history museum in e Devil Wears Prada; and Emma but the dog wouldn’t take direction coming an invading army,” Slate said. “You need to have all Roberts performing a tightrope walk between Washington and cowered in the corner the details set in advance so there is no confusion about Heights apartment buildings for the movie Nerve. But to ON THE MENU She is in talks what they are and aren’t allowed to do.” Slate, the real hotshots are the lm crews that create magic with two Manhattan restaurants at year, a er 15 years at the museum and just as the on TV and in lm. to start renting their spaces for shoots. “They are thinking they can city’s production boom was heating up, Slate decided to “My world is the location managers, the head grip, the make more with a lm crew than turn her knowledge of working with lm crews into a busi- behind-the-scenes guys who make it all happen,” Slate said. they can with their lunch service.”
BUCK ENNIS ness. Now, as the president of Sallie Slate Productions, she “ ose are my stars.” — MIRIAM KREININ SOUCCAR
24 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 18, 2017
P024_CN_20170918.indd 24 9/15/17 3:15 PM SNAPS
A tennis love match
Holding a photo of one of e City Parks Foundation held its 20th annual bene t to support the kids in a tennis program, its tennis programs Aug. 28. e nonpro t provides multiple sports Jeanne Sloane, deputy and education programs in 350 parks across the city. e event was chairman at Christie’s, with chaired by tennis greats Billie Jean King and John McEnroe. her husband, Alex, at the festivities held at the USTA Billie Jean King National Tennis Center.
Tennis legend and event honoree Billie Jean King is anked by fellow honoree Beryl Lacoste Hamilton, president of Fondation Lacoste, the grant-making arm of the sportswear company, and her husband, Rex, owner of a real estate rm. e event raised $375,000.
Party and play for cancer research Supporting e Prostate Cancer the Special Foundation held a gala and Olympics tennis tournament Special Olympics New the weekend of Aug. 26 York held a cocktail that raised a combined and dance party $4 million. Jewelry design- Aug. 9. Karen ers and husband and wife Davidowitz and her Sybil and David Yurman husband, Tim Pollak, were among the guests. an operating partner at investment rm Factory, attended the fundraiser at the New York Marriott Marquis.
Kenneth Fishel, president of Renais- sance Properties; his wife, Maria; and their son, Bradley, vice president at Renaissance Properties, attended the Kashi Madhani, an independent career consultant; Ayeesha Sachedina, director fundraiser at the of innovation at Bank of America Merrill Lynch; Raheem Haji, a board member Parrish Art Museum in for the charity and the director of corporate strategy and business development at Water Mill, N.Y. Wolters Kluwer; and Zafreen Husain, an attorney at O t Kurman, at the gala, which raised $112,000.
SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO: [email protected]. CASEY O’CONNOR PHOTOGRAPHY, PATRICK MCMULLEN, C. STEPHEN HURST PATRICK CASEY O’CONNOR PHOTOGRAPHY,
SEPTEMBER 18, 2017 | CRAIN’S NEW YORK BUSINESS | 25
P025_CN_20170918.indd 25 9/15/17 3:51 PM FOR THE RECORD*
NEW IN TOWN essential-oil brand opened ■ KicksUSA bankruptcy protection Aug. 328,000 shares of common lease 11,592 square feet. e up shop on the Upper West 1852 Third Ave. 22. e ling cites assets of stock at prices ranging asking rent for the ve-year ■ Camillo Side. e store sells aroma- e Philadephia-based $0 to $50,000 and liabilities from $64.68 to $65.91 per sublease was not available. 1146 Nostrand Ave., therapy oils and devices. urban-apparel and of $500,001 to $1 million. share from Aug. 22 to Aug. CBRE represented the Brooklyn athletic-footwear brand has 23 in transactions worth subtenant. Cresa Partners e owners of a 17-year-old ■ Ugly Baby opened its rst Manhattan ■ 2722 Charamico $21,352,378. He now holds brokered the deal for the Italian restaurant in Clinton 407 Smith St., Brooklyn store, in the space that was Realty Corp. 2,060,316 shares. sublandlord. Hill, Locanda Vini e Olii, Sirichai Sreparplarn, a once home to the Eagle 559 W. 172 St., #35A opened a Roman-themed critically acclaimed chef eater in Harlem. e real estate company ■ Shake Shack Inc. ■ Alchemy Properties and pizza and pasta place in most known for his work at led for Chapter 11 bank- (SHAK-N) Alchemy-ABR inked a deal Prospect-Le erts Gardens. the now-closed Kao Soy in ■ Ridgewood Savings Bank ruptcy protection Aug. 18. Randall Garutti, CEO, sold to relocate their joint o ces Red Hook, opened his own 1035 Fulton St., Brooklyn e ling cites assets and 8,000 shares of common to a 9,575-square-foot ■ Frame ai restaurant, in Carroll One of the city’s largest liabilities of $100,001 to stock for $31.12 per share space at 800 Third Ave. e 51 Greene St. Gardens. mutual-savings banks, $500,000. Aug. 25 in a transaction real estate and development e Los Angeles-based ca- which rst opened in worth $248,984. He now rms plan to move into sual fashion brand that’s the Ridgewood, Queens, has ■ Artisanal 2015 holds 10,961 shares. part of the 22nd oor of the brainchild of London-based MOVES AND EXPANSIONS launched its sixth Brooklyn 387 Park Ave. South 41-story building early next Swedish designers Erik branch, in Clinton Hill. e bistro led for Chapter year. Savills Studley repre- Torstensson and Jens ■ Amazon 11 bankruptcy protection REAL ESTATE sented the tenant. Joseph P. Grede opened its rst city 7 W. 34th St. Aug. 21. e ling cites Day Realty Corp. repre- outpost, in SoHo. e shop e Web giant rolled out BANKRUPTCIES assets of $1,000,001 to $10 COMMERCIAL sented the landlord, 800 is minimal in style, and its second bookstore, in million and liabilities of ■ Magna Hospitality sold ird Avenue Associates. the clothing aims for the Midtown, across from the ■ 74 Fifth Ave. $10,000,001 to $50 million. the DoubleTree by Hilton o -duty-model aesthetic. Empire State Building. Like Market Corp. in Hell’s Kitchen for $106 ■ Digital Media Rights its rst, in Columbus Cir- d/b/a Valent & Cook, million. Ascott Residence signed a three-year lease for ■ Saje Natural Wellness cle, this store stocks books New Valentino Market and STOCK EXCHANGES Trust, a Singapore-based 3,300 square feet at 243 W. 158 Columbus Ave. facing forward to allow Blue Velvet real estate trust, purchased 30th St. e digital video Pronounced “sage,” like customers to judge a book 74 Fifth Ave. ■ Estée Lauder Cos. (EL-N) the 25-story, 81,000-square- publisher and lm distrib- the plant, this Canadian by its cover. e deli led for Chapter 11 Fabrizio Freda, CEO, sold foot hotel at 341 W. 36th utor plans to move into the 313,371 shares of common St. Aug. 16. 11th oor of the 12-story GET YOUR NEWS ON THE RECORD stock at prices ranging from building. Capital Real Estate * $105.04 to $107.14 per ■ Arent Fox inked a 15-year Advisors brokered the trans- To submit company openings, moves or real estate deals, or to receive further information, share from Aug. 22 to Aug. deal for 76,000 square feet action between the landlord, email [email protected]. 28 in transactions worth at 1301 Sixth Ave. e New York Equity, and the For the Record is a listing to help businesspeople in New York nd opportunities, potential $33,143,510. He now holds 350-person law rm plans tenant. e asking rent was new clients and updates on customers. Bankruptcy lings from the eastern and southern 73,174 shares. to move into its new digs $43.64 per square foot. districts of New York are listed alphabetically. Stock transactions are insider transactions at from 1675 Broadway by New York companies obtained from Thomson Reuters and listed by size. Real estate listings are in order of square footage. ■ CBS Corp. (CBS-N) January. e asking rent RETAIL Leslie Moonves, CEO, sold was $100 per square foot. ■ Burlington signed a Colliers International 10-year-plus lease for represented the tenant. JLL 55,000 square feet at 2948 represented the landlord, Third Ave. e discount Paramount Group. clothing retailer plans to open this store early next ■ Gotham Plumbing Supply year in an area of Harlem agreed to take 34,700 square known as the Hub. e feet of warehouse and o ce tenant was represented space at 18-19 Flushing by CNS Real Estate. e Ave., Queens. e hardware landlords, Alex Adjmi and and equipment supplier to Bobby Cayre, were not general contractors plans to represented by a broker. use about 4,000 square feet for its showroom and o ces ■ Club Pilates signed a 10- and utilize the remaining year lease for 4,800 square space as a warehouse. feet at 47 Murray St. e Douglas Elliman Commer- group Pilates studio is open- cial brokered the deal for the ing its rst Manhattan loca- tenant. Sholom & Zucker- tion, and will occupy 2,400 brot Realty represented the square feet on the ground landlord, Lewis Realty Corp. oor and another 2,400 square feet on the lower ■ Knotel signed a 10-year level of the 5-story building. lease for 29,171 square Ripco Real Estate Corp. rep- feet at 137 Varick St. e resented the tenant. Eastern o ce-space provider for Consolidated represented Think startups will occupy the the landlord. e asking entire second through rent was not disclosed. fourth oors of the 13-story building. Schoen Group ■ Inchin’s Bamboo Garden at Savitt Partners repre- signed a lease for 2,786 sented the tenant. Trinity square feet at 432 Park Ave. Make your meeting magnifi cent. Real Estate represented South, where the Chinese the landlord in-house. e and Indian fusion restau- asking rent was $45 per rant plans to open its rst square foot. city location. e asking For information contact [email protected] rent for the 10-year deal was Or call (212) 549-0550 ■ Netix agreed to sublease $200 per square foot. NKF Twitter’s space at 245 W. represented the tenant. e 17th St. e video-stream- landlord, Samco Properties, ing company agreed to sub- was represented in-house. ■
26 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 18, 2017
P026_CN_20170918.indd 26 9/15/17 3:19 PM PHOTO FINISH
Sign language he tower at 200 Park Ave. is getting a face-li . MetLife is replacing the neon sign that has topped its headquarters since 1993, swapping in LED lights and a new typeface with narrower letters for Ta more “modern” look. e former Pan Am Building was the tallest commercial tower in the city when it was completed in 1963, but it was derided by architecture critic Ada Louise Huxtable as a “co- lossal collection of minimums.” e company in 2005 sold the building for $1.7 billion to a joint venture of Tishman Speyer, the New York City Employees’ Retirement System and the Teachers’ Retirement System. But the 59-story tower remains MetLife’s headquarters and is now worth $3 billion, according to Bloomberg. e new sign comes a year a er MetLife dropped Snoopy and the other Peanuts characters it had long used to advertise. While the company repositions its public image, behind the scenes it is sparring with the federal government, which in 2014 deemed it “too big to fail” and thus subject to tighter regulation. e insurer is ghting that designation in court. — AARON ELSTEIN BUCK ENNIS
SEPTEMBER 18, 2017 | CRAIN’S NEW YORK BUSINESS | 27
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