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2 Wild and Crazy Guys! Digital Door BEACH GRASS SHORTAGE Low supply slows post-Sandy dune CRAIN’S® rebuilds PAGE 5 NEW YORK BUSINESS VOL. XXIX, NO. 28 WWW.CRAINSNEWYORK.COM JULY 15-21, 2013 PRICE: $3.00 Tax credit stars in post-shoot film boom Expanded incentive lures postproduction companies to NY, spurs hiring spree BY THERESA AGOVINO Pam Williams was in Louisiana shoot- ing a movie last summer, wondering if the rumors were true. Would New York state expand its postproduction tax credit so the cost of finishing the film in the city would essentially be equal to completing it in Louisiana, which offers rich incentives to the in- dustry? In late July 2012, she got the answer she wanted: The New York credit would be enhanced. “We were so excited when it passed,” said Ms. Williams, the pro- ducer of The Butler, a film about an African-American man who served seven presidents.“We really wanted to See FILM on Page 20 Party sales knock on 2 wild and crazy guys! digital door ing Mr. Spitzer the favorite for city comptroller Facebook, Twitter give Anthony Weiner as BY ANDREW J. HAWKINS just days after he announced his candidacy,there America’s mayor? is fear that New York will, as Partnership for direct sellers new edge. The sudden prospect of Eliot Spitzer and An- New York CEO Kathryn Wylde has heard from Cathie Black plays host thony Weiner being elected to the top two city- executives, “become a national joke.” Eliot Spitzer as wide offices has set late-night comedians and Their sex scandals—Mr. Weiner’s tweeting political cartoonists atwitter, as it were. But to of crotch shots and Mr. Spitzer’s patronizing of BY ADRIANNE PASQUARELLI city’s comptroller? some businesspeople in the city, already nerv- prostitutes,which led to their resignations from ous about what lies after the Bloomberg admin- Congress in 2011 and the governorship in White wine was flowing as a group of Business leaders istration, it is nothing to joke about. 2008, respectively—are far from the only 20 women gathered at the Park Av- With Mr. Weiner leading the mayor’s race, gripes. The prospect of two men with outsize enue home of Cathie Black on a recent aren’t laughing according to one poll,and another survey deem- See WEINER AND SPITZER on Page 18 June evening.But they weren’t gabbing about politics or education with the former Hearst Magazines chairman and briefly tenured New York City REPORT HEALTH CARE schools chancellor. Instead, they were ELECTRONIC EDITION slipping into shapewear—the slim- Insurers retool for Obamacare to sign up ming undergarments that magically make bulges disappear. Ms. Black was millions of new customers PAGE 13 hosting her first party for Ruby Rib- NEWSPAPER See DIRECT on Page 20 EDITOR’S NOTE Steamrolled FYICRAINSNEWYORK.COM Anyone who’s had friends or family with addiction issues surely Next episode recognized that big grin on Eliot Spitzer’s face last Monday when in e-book drama more than 100 reporters and he future of electronic books photographers swarmed him in started a new chapter as Barnes & Union Square. Gimme your love! Noble Inc. edged closer to a breakup he all but bellowed above their Glenn Coleman T Apple Inc. and a judge thumped on pricing. shouts and questions. Until last William Lynch, chief executive of the week, the New York business country’s largest bookstore chain, stepped community’s greatest City Hall nightmare was the down. Instead of filling the top post, Barnes & election of a new mayor beholden to the municipal Noble promoted Chief Financial Officer Michael unions and bent on turning private enterprise into Huseby to the dual role of president of the company and the piggy bank for an unsustainable expansion of CEO of Nook Media. Mr. Huseby joins the scene with social-welfare causes. Suddenly, that may not be as experience in splitting businesses up—he most recently directed a spin-off bloomberg news terrifying as the specter of—seven words I would at Cablevision Systems Corp. have never imagined typing—Mayor Anthony The New York-based bookseller has already moved to separate its digital and retail divisions, Weiner and Comptroller Eliot Spitzer. “This is and it’s now outsourcing the manufacturing of its color Nook, an acknowledgment that the very serious business,” one corporate leader in the e-reader trails Apple’s iPad and Amazon’s Kindle Fire. Now Leonard Riggio, the chain’s city told Crain’s reporter Andrew J. Hawkins in his chairman and largest shareholder, says he will offer to buy Barnes & Noble’s 670-plus retail Page 1 story this week. “The mayor is a very serious stores and its website, leaving Nook Media as a standalone company. thing. Comptroller is very serious. And they have a Kindle Fire got a windfall last week when a federal judge ruled that Apple, scheming with five big impact on the economy and quality of life. So of the biggest publishers, violated antitrust laws and forced Amazon into deals that made it the question is, do either of these guys deserve to do difficult to offer e-books at low prices. Facing damages and restrictions, Apple plans to appeal. that, or would they be good at it?” The city’s voters will define such squishy concepts as “deserve” and “good” in the September primaries and the BROOKLYN’S GOT MAD JOBS. During effort to save the credibility of the the past 12 years, companies in key benchmark, which multiple HOORAY! November general election. I approved our Brooklyn created almost half of the banks have admitted to rigging for THE SHUTTLE ENTERPRISE reopened at publishing anonymous quotes from leading local new jobs in the city, according to a profit. The British authorities start- a temporary home, eight months after Superstorm Sandy damaged it. business executives reluctantly. But I thought it Center for an Urban Future study. ed a competitive bid to look for a new Jobs in the borough jumped 19% be- owner of LIBOR last year,and a gov- instructive that so few corporate captains were tween 2000 and 2012, translating to ernment-appointed commission se- willing to publicly voice their concerns. That many more than 76,000 new positions, lected NYSE. … JONES GROUP mostly in retail. Meanwhile, Man- MULLS MAKEOVER. Apparel company feared potential retribution from two famously world photo wide / combative politicians suggested a silent consensus hattan’s share of the city’s private jobs Jones Group Inc. started formally ap shrank. It now claims 60%, down exploring its options. The owner of that, come Jan. 1, the scandal-scarred pols could from 65% in 2000. … SEC LIFTS AD the Nine West brand retained Citi- OY VEY! well be running New York City. Mr. Spitzer, you BAN. The Securities and Exchange group to help determine whether it MOSQUITOES with got our attention. Commission voted to lift a decades- should put itself up for sale or divvy West Nile virus old advertising ban on hedge funds, up the company.Jones Group,valued showed up in parts of Queens private-equity shops at $1.26 billion, is al- and Staten Island and small business ‘It will be like ready closing 170 for the first time THIS WEEK IN CRAIN’S owners looking to stores and cutting this season. raise capital. The de- Florida 2000’ 8% of its staff after a IN THE BOROUGHS-------------------------- 3 cision allows them to —Susan Lerner, executive disappointing first tweet, blog and buy director of Common Cause quarter. … UNIQLO a year earlier.… STOCKS SURGE.The IN THE MARKETS----------------------------------4 ads targeting high- New York, reacting to the EXPANDS IN NYC. Dow Jones industrial average and SMALL BUSINESS ------------------------------5 net-worth investors. city Board of Elections Japanese mega- Standard & Poor’s 500 index closed Critics warn that the decision to use lever-voting retailer Uniqlo is at record highs of 15,464.07 and THE INSIDER -----------------------------------------------6 change will encour- machines for some fall branching out from 1,680.18, respectively, July 12, after BUSINESS PEOPLE ---------------------------7 age fraudulent activi- elections Manhattan as part of the Federal Reserve said it will main- A NEW OPINION --------------------------------------------------------10 ty and could deter in- a national expansion. tain its stimulus programs. … vestors from legitimate funds and The affordable yet trendy retailer DAYTIME VIEW FOR MEREDITH VIEIRA. STEVE HINDY ------------------------------------------11 startups. Fund managers and some plans to open outposts at Staten Is- Former NBC Today co-host Mered- GREG DAVID--------------------------------------------11 business owners say the newfound land Mall and Brooklyn’s Atlantic ith Vieira landed her own chat show. freedom could make fundraising Terminal this fall. Uniqlo operates The Meredith Vieira Show, slated to REAL ESTATE DEALS-------------------12 easier. … NYSE BUYS LIBOR. The op- three locations in Manhattan, in- air in fall 2014,will tape in New York. REPORT: HEALTH CARE ----------13 erator of the New York Stock Ex- cluding its 90,000-square-foot flag- She follows in the footsteps of an- change agreed to take over the Lon- ship on Fifth Avenue. Parent com- other former Today co-host, Katie CLASSIFIEDS ----------------------------------------- NEW YORK, NEW YORK 16 don interbank offered rate next year. pany Fast Retailing generated net Couric, who also has a syndicated Denise Oliveira is one of a DIGITAL NY -------------------------------------------------19 LIBOR is being sold to NYSE Eu- sales of $8.8 billion during the nine daytime talk show. number of New Yorkers who ronext in the British government’s months ended in May, up 19% from —amanda fung SOURCE LUNCH-------------------------------- have started composting their 22 food waste. P. 21 OUT AND ABOUT ------------------------------23 vol. xxix, no. 28, july 15, 2013—Crain’s New York Business (issn 8756-789x) is published week- STORIES TO WATCH THIS WEEK ly, except for double issues the weeks of July Fourth, July 29, Aug.
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