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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 NEWSPAPER 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 Gentrication’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 gentrication 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 gentrication,” 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 ofces. 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, oered 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 oer started at $100 million in 2014 and more than doubled as litigation magnicent 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 magnicent 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 dierences 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 eort 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.