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CITY MOVES TO CLOSE PAY GAP P.7 Are yellow cabs running out of gas? P.19

PROPERTY TAX HOME PUSHBACK P.20 BOX OFFICE The lm and TV production boom has New VOL. XXXIII, NO. 15 WWW.CRAINSNEWYORK.COM Yorkers such as Bill Connolly clamoring to rent their apartment for shoots. But not every neighbor is eager for a close-up PAGE 16

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P001_CN_20170410.indd 1 4/7/17 7:05 PM APRIL 10 - 16, 2017 CRAINSNEW YORK BUSINESS

FROM THE NEWSROOM | JEREMY SMERD | EDITOR IN THIS ISSUE

Make room for working moms 4 IN CASE YOU MISSED IT 5 POLITICS HAVE YOU EVER HAD ONE OF THOSE MORNINGS when you 6 BUDGET asked yourself: Why did I even bother leaving the house? Health tech 7 COMPLIANCE CEO explains Thursday was one such morning for my wife, Jocy, when why people nothing seemed to be going right. In her case, though, the 8 HEALTH CARE love his app question was not merely an expression of frustration but of 9 ASKED & ANSWERED something far more literal. 10 WHO OWNS THE BLOCK Permit me to explain. Our nearly 6-month-old son, 11 REAL ESTATE ­Judah, has started day care in Downtown Brooklyn now 12 VIEWPOINTS that Jocy’s clerkship in the 2nd U.S. Circuit Court of Ap- peals in Manhattan is underway. On Thursdays, Judah is 14 THE LIST scheduled to be picked up by 3 p.m. Because Jocy had an I thought, because FEATURES 11 a.m. doctor’s appointment that day, she’d planned to I had to pump, I 16 SPACE ODYSSEY work from a coffee shop rather than schlep into Manhat- “ 19 MEDALLION MARKET tan and lose valuable time. had to be either at 20 PROPERTY TAX FLAP But there was a catch: She needed a place to express work or at home. her breast milk. If she didn’t go to her office, where would I couldn’t just be out she pump? A Starbucks restroom? “I thought I could find a bathroom or some dark corner,” she later told me. “But I like ­everyone else didn’t want to do that.” The idea of having to plan her day around this task stirred a sense of dread as Jocy thought about the work she wouldn’t get done. Fortunately, after my wife dropped off Judah, a friend suggested Jocy find a lactation room. P. 19 “I love our BK borough pres,” read a text Jocy sent me. She had found a private 24 GOTHAM GIGS lactation room at Brooklyn Borough Hall and was sitting in a cozy chair filling baby bottles. Literature extolling the virtues of breast milk surrounded her. Problem 25 SNAPS solved. “I guess I thought, because I had to pump, I had to be either at work or at 26 FOR THE RECORD home,” she later told me. “I couldn’t just be out like everyone else.” 27 PHOTO FINISH Now she knows she can, thanks to Brooklyn politicians like Borough President CORRECTION Eric Adams, who two years ago followed the lead of Bedford-Stuyvesant Council- The Cathedral of St. John the Divine sold 99-year man Robert Cornegy Jr. and Fort Greene Assemblyman Walter Mosley and opened ground leases for abutting land at West 110th a lactation room. Last year Mayor Bill de Blasio expanded the initiative by signing Street and Columbus Avenue. The sale was mischaracterized in “A deal that’s heaven sent,” legislation requiring certain city agencies to open lactation rooms in buildings that published April 3. serve the public. Today even 1 Police Plaza has one. Many employers, including mine, already have private areas for breastfeeding moms. And the app Moms Pump Here tells users about nearby businesses that ac- commodate nursing mothers, though there aren’t enough. The relief Jocy felt was not simply physical. As she told me, moms feel pressure to go back to work and to give babies the unrivaled nutrients of breast milk. The message of a lactation room is: We want you to work, we want you to breastfeed and we’re here to help. ON THE COVER PHOTO: BUCK ENNIS

APPLY NOW DIGITAL DISPATCHES DOES YOUR COMPANY Go to CrainsNewYork.com HAVE WHAT IT TAKES? MEET On April 5 Crain’s If you think your organization celebrated this year’s > is a cut above the rest, class of 40 rising stars apply to be on our 10th annual under age 40 at event Best Places to Work list space Apella. Honorees recognizing the top 100 included Mic co-founder Chris employers in New York City. Altchek and New York Media CEO Pam Wasserstein (pictured). REGISTRATION Find out who else made the list at IS OPEN CrainsNewYork.com/40under40. To participate, go to: NOMINATE Each year we highlight the CrainsNewYork.com/bestplaces 50 fastest-growing companies in the metro area. Selected firms will be ranked Vol. XXXIII, No. 15, April 10, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double by ­revenue growth from 2013 to 2016. issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 18, by Crain Communications Inc., 685 Third Ave., If you know a publicly traded or privately New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address held company with revenue greater than changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. $10 million, let us know: Nominations (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. open online April 17. In the meantime, visit CrainsNewYork.com/fast50faq for more information. BUCK ENNIS

2 | CRAIN’S NEW YORK BUSINESS | April 10, 2017

P002_CN_20170410.indd 2 4/7/17 7:06 PM WHAT’S NEW April 10, 2017

AGENDATo reach Trump, city business leaders need tunnel vision

t is a good sign for the city’s business leaders that they could meet with President Donald Trump last week, as well as with senior members of his administration. But the question is whether they can turn that access into action. Some pessimism is justified. IThe meeting with Trump was not exactly a freewheeling exchange of ideas (see “Business execs head to D.C.,” page 5). The president did most of the talking, took only two questions and said little that seemed respon- sive to the business leaders’ agenda. He acknowledged that they want the federal government to preserve the personal income-tax deduction for state and local taxes, in addition to the deductibility of business debt. The president surely raised the spirits of bankers by assuring that he would eviscerate Dodd-Frank and other regulations they dislike. He down- played a concern raised by fellow real estate developer Jerry Speyer about STATE VISIT: Business execs should be commended for pressing the president Congress scaling back or eliminating programs beneficial to New York, on the city’s needs. But last week’s meeting should not be the only one. saying, “I am watching over everybody, Jerry. You’re in good hands, OK?” So the first challenge for New York City businesses is to get the pres- demonstrated last week, when rail problems at Penn Station disrupted ident to focus on what is important to them. Of course, every interest hundreds of thousands of commutes for several days. group in the nation, Trump’s staff and even But those delays would be child’s play members of his family are consumed by To ensure that Trump hears us, local compared with the effects of an unplanned that very task. It is a difficult one, to say the shutdown of one of the two century-old rail least. Some people have even been angling executives should book more D.C. tunnels under the Hudson River. To bring to book appearances on Fox News, hoping visits. Calling Fox wouldn’t hurt either those passages into a state of good repair, a that Trump will catch their message and new tunnel must first be built. The project respond. Scientific, it is not. to do that, called Gateway, requires at least And what should New York businesses’ top federal priority be? Other $10 billion in federal funding. That’s 1% of the $1 trillion infrastructure than to beat back congressional initiatives that would strangle funding program Trump has vaguely proposed. But his preliminary budget would streams on which our hospitals and other entities rely, we suggest infra- cut Gateway’s funding stream. He might not have realized that. To make structure. Breakdowns of transportation systems because of age, severe sure he does, city leaders should book more D.C. visits and even tweet weather or terrorism pose a constant threat to our economy, as was @RealDonaldTrump. Calling Fox wouldn’t hurt either. — THE EDITORS

FINE PRINT Of the five neighborhoods where New Yorkers have made the most complaints about used-car dealerships since July, four were in Brooklyn. Like the fifth, Ridgewood, Queens, the neighborhoods are areas where locals have had limited access to banks. In a news release, the City Council last week unveiled legislation to “combat predatory sales and financing practices in the used-car industry.”

BY GERALD SCHIFMAN STATS

THE CITY’S ROADS HAVE GOTTEN WORSE, and their 25 WORDS OR LESS SHODDY STREETS condition varies widely across the boroughs.

AND THE C

I do not think it wise Portion of streets classified as PERCENTAGE OF “GOOD” STREETS IN EACH BOROUGH being in good condition in fiscal “for a president to try 68.8% 2016, down 1.2 percentage points from the previous year 75.1% 71.0% 68.5% 66.3% cultivating a personal 59.6% I TY telephonic relationship Percentage of streets in good condition in Fort Greene, the with a U.S. attorney. 89.3% highest of any neighborhood —Preet Bharara last week in his first interview since being fired as

Bronx Staten Percentage of streets in good Queens Manhattan’s top federal prosecutor by Brooklyn Island President Donald Trump March 10—a condition in Kew Gardens, the Manhattan lowest of any neighborhood day after deciding not to return a 28.2% phone call from the president

BLOOMBERG ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY. SOURCES: Independent Budget Office, Mayor’s Management Report

April 10, 2017 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20170410.indd 3 4/7/17 7:38 PM AGENDA ICYMI CRAINSNEW YORK BUSINESS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701 EDITORIAL Population growth slowdown editor Jeremy Smerd managing editor Brendan O’Connor assistant managing editors Erik Engquist, attributed to housing costs Jeanhee Kim, Robin D. Schatz web editor Amanda Fung ERE’S SOME NEWS TO GLADDEN the heart of any- copy desk chief Telisha Bryan art director Carolyn McClain one trying to find a subway seat: The area’s surge photographer Buck Ennis in population is slowing. Last month the Census senior reporters Joe Anuta, Aaron Elstein, H Matthew Flamm, Daniel Geiger Bureau reported that the number of people living in the New reporters Rosa Goldensohn, Jonathan LaMantia, Caroline Lewis York metro­politan area as of July 1 grew by 37,000 in a year, data reporter Gerald Schifman to 14.4 million. The city says its population grew by 21,000, web producer Peter D’Amato columnist Greg David or 0.2%—about a quarter of the average rate of growth contributing editors Tom Acitelli, Theresa Agovino, Erik Ipsen, Cara S. Trager between 2010 and 2015. The growth in those years, by the ADVERTISING way, was the largest in more than half a century and drove www.crainsnewyork.com/advertise advertising director Irene Bar-Am, up the city’s population by 362,500, to 8.5 million. [email protected], Andrew Beveridge, a sociology professor at Queens College 212.210.0133 senior account managers who studies city population patterns, said the moderating Zita Doktor, Rob Pierce, Stuart Smilowitz, Debora Stein pace of growth suggests years of steadily rising housing costs CROWD CONTROL: People are still moving to the city and sales coordinator Devin Arroyo, are prompting some people to move and discouraging others region, but at a slower rate than in recent years. 212.210.0701, [email protected] ONLINE from settling here. “Housing is the variable that’s changed general manager Rosemary Maggiore, 212.210.0237, the most,” he said. “The cost of real estate may be starting to retard the city’s growth.” [email protected] Beveridge pointed to data showing that the median house value in the city jumped from $300,000 in 1999 to CUSTOM CONTENT director of custom content nearly $500,000 in 2015, while real median household income declined from $54,633 to $53,654. One-third of the Patty Oppenheimer, 212.210.0711, city’s renters pay more than half their monthly income for their apartment, he added. Those figures explain why [email protected] multicultural sales manager Giovanni Perla, Mayor Bill de Blasio’s top priority is creating and preserving affordable housing. [email protected] senior custom marketing manager That said, the city remains on track to reach 9 million residents by 2040, thanks to a steady influx of immigrants. Sonia David, [email protected] “The healthy mix of people coming and going is what has helped New York grow to be an economically strong, custom project manager Danielle Brody, [email protected] global city,” a spokeswoman for the Department of City Planning said. EVENTS Data from the city show that the Bronx and Brooklyn have grown the fastest since 2010, with population www.crainsnewyork.com/events director of conferences & events increasing by 5.1% and 5.0%, respectively. The Bronx now has 1.46 million residents—not far from its all-time Courtney Williams, 212.210.0257, [email protected] high of 1.47 million in 1970. – AARON ELSTEIN manager of conferences & events Adrienne Yee, [email protected] events coordinator Ashlee Schuppius, J.Crew cut DATA POINT [email protected] The apparel company’s longtime design Members only AUDIENCE DEVELOPMENT chief, Jenna Lyons, is leaving. Like THE DEPARTMENT OF HOMELESS Soho House will unveil its third loca- director of audience & content partnership development Michael O’Connor, other retailers, J.Crew is struggling to SERVICES IN FEBRUARY APPROVED tion in the city, on the Brooklyn water- 212.210.0738, compete for shoppers. Its revenue fell front. Dumbo House is scheduled to [email protected] 3% to $2.4 billion last year. Lyons had 38% OF FAMILIES SEEKING open in the fall at Empire Stores, home REPRINTS reprint account executive Krista Bora, been at the firm for 26 years and was SHELTER, DOWN FROM 50% DURING to retailer West Elm. 212.210.0750 named president in 2012. THE SAME PERIOD LAST YEAR. PRODUCTION Litwin dead at 102 production and pre-press director Polo grounded Leonard Litwin, who built a residential Simone Pryce Ralph Lauren plans to close its flag- real estate empire with his firm Glen- media services manager Nicole Spell SUBSCRIPTION CUSTOMER SERVICE ship Polo store on Fifth Avenue near wood Management Corp., died April 2 www.crainsnewyork.com/subscribe 55th Street on April 15 as part of a Grub hub at age 102. A generous donor to state pol- [email protected] $340 million turnaround plan. Its Polo Chef Daniel Humm’s 11 Madison Park iticians, he was named a co-conspirator 877.824.9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or $99.95 Bar restaurant will remain open. became the first U.S. eatery since 2004 in the corruption trial of Dean Skelos, one year, $179.95 two years, for print to top the World’s 50 Best Restaurants former state Senate majority leader, subscriptions with digital access. Banking business list. William Reed Business Media has though he wasn’t charged with a crime. to contact the newsroom: www.crainsnewyork.com/staff White House economic adviser Gary published the rankings since 2002. 685 Third Ave., New York, NY 10017-4024 Cohn supports a policy that could phone: 212.210.0100; fax: 212.210.0799 radically reshape Wall Street’s biggest On time or L to pay Entire contents ©copyright 2017 firms by separating consumer-lending Judlau Contracting, which worked on Crain Communications Inc. All rights reserved. ©CityBusiness is a registered businesses from investment banks. The the Second Avenue subway, and TC trademark of MCP Inc., used under license former Goldman Sachs executive said Electric won a $477 million contract agreement. companies should return to focusing to repair the L train tunnel between CRAIN COMMUNICATIONS INC. on a few things. For Goldman, that was Manhattan and Brooklyn that was BOARD OF DIRECTORS chairman Keith E. Crain trading and underwriting securities. damaged during Hurricane Sandy. The president Rance Crain firms have to complete the work in treasurer Mary Kay Crain, Cindi Crain Mets over Yanks 15 months, three months faster than senior executive vp, William Morrow executive vp, director of strategic For the first time since 1998, there are originally planned, or pay $410,000 operations Chris Crain more fans of the Mets than the Yankees. per day. executive vp, director of corporate It was a narrow victory for the Mets, Urban farm buoyed operations K.C. Crain senior vp, group publisher David Klein 45% to 43%, according to a Quinnip- Verizon courts MSG A floating farm with fruit trees vp/production, manufacturing David Kamis iac University poll. Winning ballgames Verizon might be interested in MSG and other crops will travel to piers chief financial officer Bob Recchia remains the key to attracting fans. The Networks, which owner James Dolan in Manhattan, Brooklyn and the chief information officer Anthony DiPonio Mets were in the World Series two sea- is looking to sell. The regional sports Bronx. The 5,000-square-foot Swale founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996] sons ago and have made the playoffs network has TV rights for the Knicks barge includes a solar-powered secretary Merrilee Crain [1942-2012] two years in a row. The Yankees were and Rangers and collects about $5 per growing space and an apple in the 2015 playoffs but haven’t been in subscriber per month, among the high- orchard sponsored by Strongbow.

BLOOMBERG, BUCK ENNIS the World Series since 2009. est rates in the country.

4 | CRAIN’S NEW YORK BUSINESS | April 10, 2017

P004_CN_20170410.indd 4 4/7/17 7:07 PM AGENDA POLITICS

To offset the Trump effect, city woos Mexican tourists Ad campaign launches as foreigners cancel trips BY ROSA GOLDENSOHN

t was not what Karen Shackman wanted to hear. visitors arrived from Mexico, making it one of the top Her destination-management firm, Shackman 10 sources of foreign tourists to the city. But recent Trump’s push for a border wall “sends a really neg- Associates New York, had arranged corporate- projections for 2017 forecast a more than 6% decline, ative signal,” Dixon added. incentive trips to the Big Apple for 160 employ- which would reverse a two-decade surge interrupted Mexican visitors spent more than $1 billion in New Iees of a beauty company and an insurance group from only briefly by the recession. York City in 2015, an average of $2,315 per person Mexico. But they were canceling. Before November’s election, visits from Mexico per trip, according to NYC & Co. Mexican tourists are “They said, ‘Under the political circumstances, we and many other nations had been projected to in- largely affluent leisure and business travelers who vis- don’t feel it’s right for us to come right now,’ ” Shack- crease. “The macroeconomic conditions were mostly it repeatedly and shop heavily. Business groups from man recalled. the same,” the city’s tourism chief, Fred Dixon, said. Mexico have canceled plans for conferences for the With President Donald Trump having made such “But the one overarching factor that had changed was foreseeable future, Dixon said. trips less appealing for many Mexicans, the city’s tour- the geopolitical climate and the rhetoric.” Tourism industry groups report a nationwide ism arm is trying to counter the headwind. Last week Trump’s depictions of Mexican immigrants as slump, blaming the president’s proposed travel ban NYC & Co. launched an effort with Mexico City’s “rapists” bringing drugs and crime into the Unit- and comments about refugees and undocumented im- Ministry of Tourism to boost potential travelers’ en- ed States “hit pretty hard here,” Dixon said during a migrants for scaring off foreigners. Dixon’s next worry thusiasm about visiting. Billboards and bus shelters in phone interview from Mexico, where he and Mexico is the possibility of “extreme vetting” for visitors that Mexico’s capital will proclaim that New York City le City’s mayor are renewing a city-to-city partnership. involves demanding their devices and passwords. da la bienvenida al mundo, or “welcomes the world.” “I think they were personally offended. I think it was “That will be a major detractor from the U.S. as a The encouragement is needed. Last year 449,000 an affront to them.” destination if that does come to be,” he said. ■ Business execs head to D.C. Press the president on spending

he city’s top business executives bent the ear of President Donald Trump and his advisers last week, using a face-to-face meeting to push an agenda for the city. Their time at the TWhite House featured some awkward moments. More than 50 members of the Partnership for New York City, the leading local business group, traveled to Washington to advocate for infrastructure spending and other priorities. Trump seemed eager to please the financial-sector CEOs on hand, saying he would roll back regulations cumbersome to Wall Street. “We are absolutely destroying these horrible reg- ulations that have been placed on your heads over The Top-Ranked MBA You Want. not eight years, [but] over the last 20 and 25 years,” Trump said, promising “things that are going to be very good for the banking industry.” The Flexibility You Need. The president took just two comments, the first from real estate developer Jerry Speyer. “We’re wor- ried that we’re going to have a problem with Con- gress,” he told Trump. “We’re worried about various programs that help the city.” A TOP ONLINE MBA WITH A REAL-WORLD FOUNDATION Trump did not address the issue of federal pro- gram cuts, instead discussing the deductibility of state Now you don’t have to choose between Small Classes and local taxes on personal tax returns. “One of the working and earning your MBA at a top-ranked A student-faculty ratio of 14-to-1 ensures you business school. The Online MBA program get the attention you need. problems that you have is debt and deductibility,” he at Hofstra University’s Frank G. Zarb School said, later adding: “But I am watching over everybody, Multinational Experience of Business, the highest-ranked program A global practicum exposes students to the Jerry. You’re in good hands, OK?” in the NY metropolitan area, offers fl exibility workings of international business. and a personal education with all the resources Cathy Engelbert, CEO of Deloitte, asked about ed- Top Faculty and connections that come from an ucation, noting that only 37% of students are consid- Learn from full-time professors who are experts internationally recognized university. ered ready for college upon graduating from city high in their fi elds. schools. Trump turned the question back on her, ask- Sophisticated Students with extensive ing why high school students “can’t read.” She replied business experience. that the city’s graduation rate had steadily improved. “See how quickly she’s changing? See that?” Trump The Online MBA is one of many programs offered by the Zarb School of commented, then suggested ending Common Core Business, including an Executive MBA, an MBA in Manhattan, a full-time education standards, which are strongly supported by cohort MBA (that includes a co-op experience), and on campus full and part-time graduate business programs. the business community. The group wants to see federal funding of city in- LEARN MORE AT HOFSTRAMBA.COM frastructure, preservation of the federal income-tax deduction for state and local taxes, investments From The Princeton Review, September © 2016 TPR Education. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, in cybersecurity, government-backed workforce-­ redistribution, or retransmission of this content without express written permission is prohibited. development programs and a path to citizenship for

ISTOCK undocumented immigrants. — R.G

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April 10, 2017 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20170410.indd 5 4/7/17 7:02 PM AGENDA STATE BUDGET

As budget talks stalled, pols pointed fingers Policy reform prioritized over spending plan BY ROSA GOLDENSOHN AND ERIK ENGQUIST

hat makes this state has been accused by the left of empow- budget different from all ering “Trump Republicans” by allying others? For the first time with GOP senators who control the since 2010, the annual upper chamber. The breakaway cau- fiscalW plan wasn’t passed by the April 1 cus threw its full weight behind Raise deadline. And that led Albany’s political the Age; legal-services funding and factions to spin the results for their own the Dream Act for immigrants; and CAPITOL OFFENSE: After failing to pass a budget before the fiscal year began, benefit while the business community extending the “millionaires tax.” lawmakers in Albany spun the outcome to serve their own political interests. waited helplessly for policy and funding “IDC Leader Jeff Klein will deliver decisions that had hundreds of millions Raise the Age in New York so our 16- of dollars riding on them. and 17-year-olds stay out of adult pris- Senate Republicans also were try- just a spending plan. Besides, he had The primary hang-up was a push ons,” a conference spokeswoman had ing to deliver for their constituencies, his own spin for the lateness: It was for by Gov. Andrew Cuomo and Assembly vowed last month. “We will not allow notably developers who were seeking the best, given the uncertainty of aid Democrats to move 16- and 17-year- New York to treat our teenagers like a robust revival of the 421-a property from Washington. olds accused of nonviolent crimes out criminals in criminal court or continue tax break for new apartment con- “I want to make sure we do not of the adult criminal-justice system. the tradition of mass incarceration of struction in New York City. The high overcommit ourselves financially,” he When the various factions got stuck on our youth, and the eight members of stakes of 421-a were made evident late told reporters, calling federal fund- details, state Sen. Fred Akshar, Repub- the IDC will not vote for a budget in last month, when owners of a 9-acre ing cuts “inevitable.” Trump proposed lican from Binghamton, the absence of Raise the Age.” Queens development site listed an ask- a budget with significant reductions, blamed New York City Dem- Senate Democratic leader ing price of $350 million, which they though Congress is likely to reject most ocrats for being “willing to Andrea Stewart-Cousins, probably could fetch only if the tax of them if it passes a spending plan. The compromise public safety by whose conference has been abatement is restored. federal fiscal year begins Oct. 1. not holding violent 16- and shrunk and relegated to “We wouldn’t have hit the mar- Citing the situation in Washington, 2STATES charge 17-year-olds accountable for 16- and 17-year- the political wilderness ket with Astoria Cove in the past 16 Cuomo also took the opportunity to rape and murder.” olds as adults: by Klein’s gains, said such months because of the uncertainty push for more budgetary power for his That characterization in­ NY and NC debates would have been around 421-a,” said Bob Knakal, a bro- office, namely the ability to implement furiated Assembly Speaker settled if Senate Democrats ker for the property. “But there’s been a midyear changes. Carl Heastie. “Unfortunately, were united. “Dysfunction sense of optimism in recent weeks that “Picking a number now and saying some senators have chosen to engage and chaos have descended on Albany,” 421-a will be back and, with it, the land ‘This is going to be the number’—and in a fear campaign that falsely accuses Stewart-Cousins said. “This situation market will strengthen.” not knowing what’s going to happen Assembly Democrats of coddling mur- has spiraled out of control, and New next week or next month or when the derers and rapists,” Heastie fumed in Yorkers deserve better.” Cuomo’s streak ends federal government passes a budget or a statement. He had refused to put off That also was the message last week Republicans also were pushing for when they don’t pass a budget or when “Raise the Age”—a proposal that has of the hopelessly outnumbered Assem- more funding for charter schools and they do a continuing resolution—is been around for years—until after the bly Republicans, as it has been for years. to allow e-hail companies such as Uber very hard,” Cuomo said. “So I am look- budget, as Albany normally does with Like the mainline Senate Democrats, and Lyft to operate outside New York ing for continuing financial flexibility.” disagreements that threaten on-time they have no say in budget negotiations City—a measure that also had substan- In the absence of a final budget passage. With Donald Trump in the and therefore call attention to the trou- tial Democratic support. agreement, legislators on April 3 passed White House, Democrats are especially bles of the power brokers who exclude For the governor, the six-year streak an interim measure that kept the state driven to deliver victories to their base. them. “A late budget is a failure of state of punctual budgets had been a point government fully operational. Kolb No one is feeling more pressure to government to meet one of its basic of pride, but he appeared to refrain called the budget extender “a disap- show progressive bona fides than state responsibilities,” Assembly Minority from heavy-handed tactics to push it pointing and dysfunctional reminder Sen. Jeffrey Klein’s breakaway Indepen- Leader Brian Kolb, Republican from to seven—perhaps realizing the politi- that after three full months, Albany has dent Democratic Conference, which Canandaigua, said in a statement. cal value of passing reforms rather than achieved next to nothing.” ■ HOW THEY CHARACTERIZED IT

ANDREW CUOMO CARL HEASTIE JEFF KLEIN ANDREA STEWART-COUSINS BRIAN KOLB “Picking a number “Some senators have “We must do “Dysfunction “A late budget is now and not chosen to engage everything we can and chaos have a failure of state knowing what’s in a fear campaign to protect our descended upon government to meet going to happen [in that falsely accuses immigrant Albany. … New Yorkers one of its basic

WIKIPEDIA Washington] is hard” Assembly Democrats” communities” deserve better” responsibilities”

6 | CRAIN’S NEW YORK BUSINESS | April 10, 2017

P006_CN_20170410.indd 6 4/7/17 7:37 PM AGENDA COMPLIANCE

are easier for large companies than OTHER EMPLOYMENT MANDATES put in place by the de Blasio City Council passes one for small businesses that don’t have a administration human resources department, he noted. ● Paid sick days And although pay history is a factor in more employer mandate ● Ban on credit checks by perpetuating inequity, compliance with prospective employers BY ROSA GOLDENSOHN Mayor expected to sign bill barring salary questions the new law alone will not level the play- ● Limit on criminal background ing field. “Is it going to actually close checks mployers will a corporate consultant on by job title and gender to the wage gap?” he asked. “Not without ● Transit benefits for all be forbidden gender issues, said busi- know” whether a pay gap much more structure around fairness employees to ask about nesses can examine their between men and women and equity in your hiring practices.” ● Advanced scheduling for fast-food workers and a ban job applicants’ own pay gap internally. exists, Halter said. The city’s Human Rights Commis- on back-to-back shifts Esalary history under a “Any CEO anywhere can Metrics and market- sion will enforce the law. The penalties ● New owners of grocery stores bill passed April 5 by the ask someone for a report compensation analyses have yet to be determined, James said. ■ can’t fire employees for 90 days. City Council. The measure, which Mayor Bill de Blasio is expected to sign into law, is intended to close the gender pay gap. Public Advocate Letitia James, who led the charge for the legislation, said employers should “focus on the value of the job,” noting that factors such as time off to raise chil- dren can skew women’s pay history downward. “If you ask me what my salary history is and I have been out of the Orchestrating workforce for 10 years, then I am negotiating against myself,” she said. excellence Job applicants are allowed to disclose sal- Welcome to Hackensack Meridian ary history unprompted, Health. Where researchers fast-track and employers can use the information to deter- breakthroughs into life-changing care. mine compensation. The medical school of tomorrow, Business groups had opposed the proposal, with humanity at its core, is taking worrying that it could shape today. And a full spectrum of impair employers’ abil- services—from virtual appointments ity to assess and place applicants. to home health to treating the most But some are already complex conditions—is perfectly doing away with asking orchestrated and in tune with your about salary history. Crowdfunding platform needs. Here, everyone works Kickstarter, which is together to make your world better. based in Greenpoint, banned such ques- tions this year. General Let’s move forward together. counsel Michal Rosenn HackensackMeridianHealth.org said salary history had never been an official 844-HMH-WELL part of the process for interviewing at the 130-employee company. “When we’re look- ing at setting salary, it’s looking at the level of the person. It’s looking at what market com- pensation for that kind of role is,” Rosenn said. “We sort of look at every position holistically and make sure that we’re set- ting those salaries in a fair way, both within the market and within the organization.” Jeffery Halter, for- mer diversity chief at The Coca-Cola Co. and

April 10, 2017 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20170410.indd 7 4/7/2017 4:01:56 PM AGENDA HEALTH CARE

State’s private insurers see TRACKING THE COST OF ADDICTION IN NEW YORK opioid-related claims surge Health plans are rethinking their benefits to meet rising demand for drug treatment BY CAROLINE LEWIS

rivate insurance claims for But state data also show that Long emergency room visits, sub- Island has been particularly hard- stance-use treatment and oth- hit by the current epidemic. Suffolk er services related to opioid County in 2014 had the most heroin Paddiction surged in the state between overdose deaths and the most deaths 2007 and 2014, well before the latest in which prescription opioids were a coverage mandates took effect, new factor, according to the state comp- data show. troller’s office. During that period, the number Fair Health is planning to conduct of claims related to opioid abuse and statewide follow-up studies to exam- dependence—two similar but distinct ine the cost of covered services to treat diagnoses—increased 487%, with a opioid addiction, but a national study sharp increase taking place between offers a hint. 2011 and 2014, according to informa- In 2015 private payers’ average ROBERT CORDERO tion provided by health care transpar- costs for a beneficiary diagnosed of Boom Health using an overdose- ency group Fair Health, which has the with opioid abuse or dependence was reversal kit. largest private health-claims database almost $16,000 higher than the aver- in the country. age per-person cost for all patients, “In some ways New York is in according to Fair Health. lockstep with the rest of the country,” said Robin Gelburd, president of Fair New mandates Health. “Heroin overdoses are dispro- Recent state and federal regula- portionately plaguing males who are tions are expanding private insurance 30 and under.” coverage for substance-use treatment While the state’s problem with services. Plans weren’t required to heroin and opioid painkillers mirrors cover residential treatment for sub- a nationwide trend, Fair Health’s data stance-use disorder to the same degree identify some local pain points. as other inpatient services until July City’s suburbs hardest hit by opioid epidemic In New York City, for instance, 2014, when an update to the federal private insurance claims for treating Mental Health Parity and Addiction Nassau, Rockland, Suffolk pregnant women for drug dependence Equity Act took effect. and Westchester counties rose from 3 in 2007 to 81 in 2014, a As of January, insurers in New York had a disproportionate share of commercial 2,600% increase that far outpaced the must wait two weeks after a patient health claims from 2007 rest of the state and the country. ­enters residential treatment before con- to 2014, according Across the state, claims of drug ducting a review of whether those ser- to Fair Health. NYC dependence during pregnancy, which vices are needed—one of several new Suburbs includes dependence on opioids, rules to expand access to opioid-abuse 37% multiplied from 43 in 2007 to 286 in treatment that began this year. Rest of NY 2014—a 565% increase, compared “Clearly, the access to treatment 50% with 511% nationwide. and the increase in people seeking Both the city Department of Health treatment is driving up costs,” said and Mental Hygiene and the state Shira Irizarry, director of behavioral 13% Office of Alcoholism and Substance health services at Empire Blue Cross NYC Abuse Services declined to comment. Blue Shield. “But we can’t look at those Overall, private insurance claims costs in a vacuum.” related to opioid abuse and depen- The insurer now views a ­substance- dence rose at the highest rate in use disorder as a chronic condition the suburbs. The claims increased and is seeking to expand members’ ac- 1,459% in Nassau, Rockland, Suffolk cess to community-based services that Claims for pregnancy drug dependence rose dramatically in NYC and Westchester counties during the could help them avoid expensive hos- study period, compared with 324% in pital admissions and emergency room NYC NYC suburbs Rest of NY All of NY state New York City and 310% in the rest visits, said Irizarry. 300 286 of the state. Although the city is the For instance, about a year ago most populous part of the state, resi- Empire Blue Cross Blue Shield be- 250 dents here generated only 13% of the gan contracting with The New York private insurance claims related to Foundling, a Manhattan nonprofit 200 opioid abuse and dependence during that provides intensive in-home care the study period, compared with 37% for people with substance-use and in the city’s suburbs. mental health ­diagnoses. 150 154 “I don’t think we will know what Regional disparities the outcome is really going to look 100 The fact that the Fair Health data like until we address what types of 81 excluded Medicaid enrollees, who are treatments are available and make more concentrated in New York City sure our members have access to 50 51 than in the suburbs, might account for those treatments that have the proven some of the regional disparities in the ability to support long-term sobriety,” 0

BUCK ENNIS study, said Gelburd. said Irizarry. ■ 20082007 2009 2010 2011 2012 2013 2014

8 | CRAIN’S NEW YORK BUSINESS | April 10, 2017

P008_CN_20170410.indd 8 4/7/17 7:04 PM AGENDA ASKED & ANSWERED HEALTH CARE INTERVIEW BY JONATHAN LAMANTIA

OLIVER KHARRAZ ZOCDOC

ew Yorkers wait an average of 26 days to land an appointment with a primary care doctor. Zocdoc’s If Zocdoc were CEO, Dr. Oliver Kharraz, blames inef cient schedul- “ going to work, it ing practices. He co-founded the private health tech had to work in Ncompany in 2007 and expanded his role to chief executive two New York City. years ago. The former McKinsey & Co. health care consultant’s goal: enable patients to book appointments within 24 hours.

Why is it so hard to see a doctor? Doctors are booked for a long time into the future, that’s true. But when you look back, you see they were at 60% to 70% [capacity] because of last-minute cancellations, no-shows and rescheduling.

How are you looking to solve that problem? Imagine there was a different website for every single plane you could take from here to San Francisco, but no one place to go to see all the ights. Zocdoc in some ways does for doctor’s appointments what Kayak, OpenTable and Hotels.com do for travel and restaurants and hotels. We are an inventory- management solution for health care that makes sure a valuable resource is used appropriately.

Given that the app is free, how do you make money? Doctors pay us a at subscription fee of $3,000 per year. DOSSIER Why did you decide to launch Zocdoc here in 2007? New York is in some ways the perfect city for a health technol- WHO HE IS Co-founder and ogy startup. You have 1 in 6 doctors being trained here, a huge CEO of Zocdoc diversity of health systems and a huge and diverse patient base FUNDING $223 million to work with. If Zocdoc were going to work, it had to work here. VALUATION $1.8 billion, as How will Republicans’ plans for health care reform affect the company? of 2015 We will do well no matter what comes, because we are solving a EMPLOYEES 500-plus fundamental patient problem, which is how to get access to care, AGE 43 and a provider problem, which is how to run ef ciently. It’s very BORN Berlin [politically] independent. RESIDES Park Slope Is it possible to shop for high-quality, low-cost health care? EDUCATION Master’s degree, It’s very dif cult. A requirement for shopping effectively is that Munich School of Philosophy; the appointments need to be available in less than four weeks. M.D., Ludwig Maximilian Univer- sity, Munich We’re trying to solve the issue so that once you determine a doctor is right for you, you can actually see her on your terms. IN HIS GENES His family has worked in medicine for How do high-deductible plans with limited choices affect your model? the past 300 years. They accentuate the need for Zocdoc because if you have a BIG BREAK The sale of so-called narrow-network plan, it might be harder to get access Kharraz’s rst startup helped him pay for medical school. “That was a to care. great idea because it protected me from too much money too soon.” Zocdoc lets patients rate service. How should doctors be measured? THE THINKER Kharraz opted for In an ideal universe, we’d have metrics to say, “This is the doctor a career in medicine after studying with the best outcomes.” The underlying math makes it very hard philosophy. “I realized, That’s not some- to do that on an individual level. Instead, we focus on the emo- thing I will be able to feed my family on.” tional connection that a patient develops with a doctor. Much of BUCK ENNIS health care includes lifestyle changes or medication adherence. The fact that you click with your doctor and are therefore more likely to follow her instructions is incredibly important.

Why do you make users book appointments digitally rather than by phone? That’s what a growing number of patients want. We had a user tell us she was too sick to use her computer to book an appointment but then realized she could download our app and book it on her phone. It didn’t occur to her to use that phone to call a doctor. ■

APRIL 10, 2017 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20170410.indd 9 4/6/17 6:45 PM AGENDA WHO OWNS THE BLOCK REAL ESTATE

Six landlords rule the Garment District They own one-third of the area, and many of their tenants are out of fashion

BY TOM ACITELLI

620 EIGHTH AVE. he de Blasio administration’s recent proposal to rezone the Garment Dis- W.P. Carey, a publicly traded real es- tate investment trust chaired by Ben- trict has been met with resistance jamin Griswold and led by CEO Mark from critics who say the effort would DeCesaris, bought a 50% stake in the Tall but destroy the area as an apparel hub. 1.5 million-square-foot, 52-floor tower for $225 million in 2009. The seller 512 SEVENTH AVE. By the looks of the district’s current ten- was The New York Times Co., which ants, that demise is already underway. 234 W. 39TH ST. developed the tower with Forest City The Chetrit Group, owned by brothers Joseph and Meyer Six landlords own one-third of the dis- Herald Square Properties, a private Ratner during the previous decade. Chetrit, controls the major- company founded by Gerard Nocera Both developers each own a stake in trict’s 25 million square feet between West ity of this 45-story building and Michael Reid, bought this 10-story, the building, and the Times is the an- and has offices here. Edward 35th and West 40th streets and Ninth Ave- nearly 101,000-square-foot commer- chor tenant. The tower represents W.P. J. Minskoff Equities and the nue and Broadway, according to brokerage cial building for $31 million in 2014, Carey’s sole holding in the district. Moinian Group are minority with The Davis Cos. as a minority part- firm Cushman & Wakefield: The Chetrit stakeholders. The trio bought ner. Herald Square Properties contin- the ground leases for 512 Group, Empire State Realty Trust, George ues to target fashion industry tenants Seventh Ave. and 228 W. 38th Comfort & Sons, the Kaufman Organiza- for leases in the building. Its ownership St. for $140 million from the is indicative of much of the ownership tion, Newmark Holdings and W.P. Carey. estate of Sol Goldman in 1999. in the district: Regionally focused real Their properties are filled with a hodge- estate companies own 42.6% of the 25 podge of tenants, many of whom have million square feet, according to Cush- nothing to do with the fashion industry. man & Wakefield. The rest are firms None of the landlords is on record op- with national or international holdings, REITs, government entities or proper- posing the rezoning, and none would really ties occupied by owners. benefit from its key—and most controver- sial—aspect: the end of a 30-year-old reg- ulation intended to protect manufacturers by re- quiring any office conversion to preserve or create 520 EIGHTH AVE. an equal amount of industrial space. Empire State Realty Trust is the biggest neigh- Newmark Holdings, a real estate ownership and 1400 BROADWAY borhood landlord, with 2.04 million square feet. management group un- Its largest asset, the 686,000-square-foot 1400 der the Newmark Grubb Empire State Realty Trust Broadway, includes the corporate offices of appar- Knight Frank corporate owns the 37-story commer- umbrella, owns 1.39 mil- cial building. Anthony Malkin el retailers Burlington Coat Factory and Kohl’s. lion square feet of Gar- is the chairman and chief ex- But the bulk of the space is leased to marketing ment District space. The ecutive of the publicly traded giant Interpublic Group, small-business lender 532,679-square-foot, trust, which was launched 24-story 520 Eighth Ave. in 2013 from Malkin family OnDeck, VeriFone Systems and Mott MacDonald, is its largest asset. Ten- holdings and includes the an engineering and management consultant. ants include The Nation Empire State Building. The Chetrit Group, the second-biggest land- magazine, the ASPCA and rehearsal space for lord, has 1.28 million square feet, including the Ripley-Grier Studios. 502,960-square-foot 512 Seventh Ave., which has no major fashion tenant to speak of since The Levy Group, a manufacturer for Vera Wang and Nautica, moved from 512 Seventh Ave. to 1333 498 SEVENTH AVE. Broadway, which is owned by Empire State Realty, George Comfort & Sons, a private real estate earlier this year. group that Peter Duncan has led as president The de Blasio administration says that such a and chief executive since 1995, owns 1.04 million square feet of space in the district, diverse tenant mix is increasingly inevitable as the 450 SEVENTH AVE. according to Cushman & Wakefield. This district transitions away from clothes manufac- The Kaufman Organization, a private 811,056, 24-story building is the company’s turing. The number of apparel-related jobs there firm that George Kaufman chairs, owns biggest area asset. JPMorgan Chase and Loeb Partners Realty are minority stakeholders. has declined to around 5,100 from 30,000 in 1987, 1.09 million square feet of space in the district. The 46-floor, 414,457-square- Tenants include Modell’s and Jones Apparel when the city imposed the current zoning rules. ■ foot 450 Seventh Ave. is its biggest as well as non-fashion firms such as media-­ asset here. Tenants include IT firms investment company GroupM Worldwide and Essensys and Reliant Solutions, the investment bank LN Holdings. London School of Economics and Polit- ical Science alumni-relations wing and executive search firm Howe-Lewis. GOOGLE MAPS, BUCK ENNIS

10 | CRAIN’S NEW YORK BUSINESS | April 10, 2017

P010_CN_20170410.indd 10 4/6/17 6:48 PM AGENDA REAL ESTATE

Rare tower set to rise on Upper West Side Developers connect far-flung parcels to add air rights BY JOE ANUTA

ity zoning restrictions make it extremely Square Synagogue. In 2007 the difficult to build high-rise apartment tow- house of worship was acquired ers on the Upper West Side. But with some in a land swap with American land-use acrobatics, it can be done. Continental Properties, a land- CConsider the approvals recently secured by devel- lord that controlled another opers SJP Properties and Mitsui Fudosan America to parcel on the block. At the end erect a 668-foot condominium building at 200 Am- of the deal, the synagogue got a sterdam Ave., at West 69th Street. While its footprint place to build its current home, will be 10,800 square feet, its zoning lot is 10 times and American Continental that size and resembles a gerrymandered political Properties got a 12,000-square- district more than a development site. foot site that would have at most At some points the lot is no wider than a sidewalk accommodated a small residen- as it threads its way around the block, a leafy cutout tial building. BIG FOOTPRINT of the city’s street grid bounded by West 66th and But the firm and its consul- The original lot at 200 Amsterdam Ave. could accommodate only a West 70th streets between Amsterdam and West End tants soon began adding unused low-rise building, but some creative planning allows for a large tower. avenues. The bizarre-looking air rights from as parcel, which was carefully far away as West drawn up by the previous own- Working within the End Avenue and connecting them back Unlike the densest areas of Midtown, developers in ers, shows how working with- city’s byzantine zoning to the lot along Amsterdam Avenue. this part of the Upper West Side have to include open in New York City’s byzantine These additions didn’t change the phys- space when building. And the bigger the tower, the zoning laws can be as much laws is as much art as ical land that the developers owned. more open space developers need. The planned struc- art as science and, in this case, science Rather, a zoning lot determines how big ture at 200 Amsterdam Ave. will meet those require- turned an otherwise lackluster a building can be, and it can run onto ments with the parking lots and grassy areas that have lot into a massive development other owners’ properties and scoop up been absorbed into its zoning lot. opportunity. extra square footage. By the time they While such transfers are common for new devel- “Whoever thought this up is very creative,” said were done, the site was more than 100,000 square feet, opments, they rarely take on the shape and complex- George Janes, a planning expert and consultant who about twice the footprint of the Chrysler Building, ity of the Amsterdam Avenue lot, which had to be reviewed the approvals. and was able to accommodate a 55-story tower, the meticulously carved out to avoid upsetting the open- The site was the longtime home of the Lincoln tallest in the neighborhood. space needs of the existing buildings on the block. ■

Meatpacking rents soar 860 Washington Ave. nearly full BY DANIEL GEIGER

ROMANOFF EQUITIES and a partner have near- ly finished leasing up 860 Washington Ave., a 113,000-square-foot office and retail property that was completed late last year and is one of the first among a group of new commercial development proj- ects in the Meatpacking District. Baker Brothers Investments, an investor in life sci- ences companies, recently signed a 15-year deal for Attend a one-day cyber risk governance and management seminar designed exclusively for the 10-story property’s third and top floors, space that executives and board members. totals about 23,045 square feet. Baker agreed to pay $140 per square foot and $170 per square foot, respec- + Learn to assess cyber threats tively, for the floors. impacting your business. LG Capital, just took a portion of the building’s + Evaluate effectiveness of your sixth floor, totaling about 4,500 square feet, for 10 cybersecurity investments. years and rents that start at $130 per square foot and + Experience a real-world cyber rise to $140 over the term of the deal. crisis simulation. All that remains in the building is a portion of the sixth floor and the lower level. SPECIAL NEW YORK OFFER! “We have a great list of tenants, and we’re really Use Code: CYBERNY $1,095 pleased with the results we achieved at the property,” said Stuart Romanoff, a principal at the family-owned Romanoff Equities. CYBER BREACH EXERCISE POWERED BY IN PARTNERSHIP WITH The deals are good news for a handful of projects in the neighborhood. Vornado and Aurora Capital Associates are raising a new boutique office building at 61 Ninth Ave. Aurora is planning another at 40 10th Ave. Rockpoint Group and Highgate Holdings 2017 NEW YORK CITY SAN FRANCISCO CHICAGO PRIVATE EVENTS will finish a 270-foot-tall office tower at 412 W. 15th CYBER RESOLVE May 1 August 1 November 7 Upon Request St. by the end of the year. All three are seeking rents SEMINARS that, like 860 Washington St., are well above $100 per cybervista.net/executives square foot and as high as $200 a foot for top floors.■

April 10, 2017 | CRAIN’S NEW YORK BUSINESS | 11

P011_CN_20170410.indd 11 4/6/17 8:56 PM AGENDA

Trump revolution now looks like fake news, to the relief of some Experts say many of the president’s plans won’t amount to much Worries about federal funding, health

EVER SINCE NOV. 8, New State and local tax deductibility is safe. A The Medicaid expansion, which care and tax reform Yorkers have been corporate tax deal is likely to be modest accounts for most of the decline in the may be misplaced, girding themselves and generate about $250 billion. Con- uninsured rate, is entrenched. Even the against the disas- gress will restore most of the federal aid conservative state of Kansas came just a but so is hope for ter President Don- to the states that Trump wants to cut. few votes short of adopting it, and Jon- infrastructure projects ald Trump and the Attempts to punish so-called sanctuary athan Shoreman of The Wichita Eagle Republicans in Con- cities beyond slashing money that goes predicts the votes will be there to do so gress would unleash. directly to law enforcement will be tied next year. I run at the CUNY Graduate School GREG DAVID The media—includ- up in the courts for years. On the other hand, don’t expect a of Journalism. I had thought by early ing this column— The tax exemption for municipal $1 trillion infrastructure plan. Trump April that Obamacare would be nearing have been filled with efforts to quantify bonds is equally safe, according to Matt can’t seem to articulate what he wants, a drastic overhaul, tax reform would what Trump means for New York. Fabian of Municipal Market Analytics, and the money will be hard to find. be gaining momentum and an infra­ Maybe the worries are misplaced. who has spent time in Washington tak- Sean Sloane, who tracks all things structure plan would not be far behind. I spent much of last week with people ing the pulse of Republicans on the issue. transportation for the Council of State Maybe the experts have read too whose job it is to track issues such as Most of the Affordable Care Act is Governments, puts the chance of an much into the demise of the GOP federal aid to states and cities, infra- safe, probably all of it. The law’s popu- infrastructure plan passing by next health care plan. Maybe Trump will get structure and the Affordable Care Act. larity jumped the day after Trump was April at 18%. Trump also is wimping his act together, although Silver said The message was clear: Trump’s elec- elected, said data journalist extraor- out on trade, a subject that would need the odds of that are low. The situation tion will change nothing in those areas. dinaire Nate Silver, and the Republi- a column all its own. might be different on other issues. But There will be no massive personal can replacement’s unpopularity was I know all this because for two for now, it’s mostly status quo. ■ tax cut favoring the wealthy, said Dan unprecedented in recent decades. months I organized a conference on White, the point person on state and Republicans will pay a huge price if Trump’s effect on states and cities for GREG DAVID blogs regularly at local finances for Moody’s Analytics. they persist in passing their plan. the Ravitch Fiscal Reporting Program CrainsNewYork.com.

LOW-RISE CITY: Unshackle New York City The gray areas are zoned BY JASON M. BARR for one- and A lot of zoning rules are outdated or never made sense to begin with two-family homes.

sk a random person what legally mandated to be so. zoning is about and he is New York is going to have difficulty Density allowed (floor-area ratio) likely to conjure up images remaining a thriving and growing city if of committee hearings and it maintains such limits. The last whole- 0.5-1 Aunintelligible jargon. But zoning is a sale zoning reform was in 1961, when 1–2 2–3 crucial factor in housing affordability John F. Kennedy was president. Today 3–4 and the quality of life in New York City. zoning modifications tend to be piece- 4–5 Consider that from 2011 to 2015 the meal and ad hoc. Residents frequently 5–8 city added 62,345 units of housing— resent when their neighborhoods are 8–10 enough to accommodate about 125,000 singled out for such changes. Thus, people—as the population increased reform must happen at the citywide level by more than 300,000, to more than and be systematic. The biggest obstacle 8.5 million. The population is on pace is political. Those who fear that changes to reach 9 million in 2021. Meanwhile, will harm them must be brought into housing costs are likely to rise in no the process and have their concerns small part because of zoning that effec- considered. Here’s what should be done. tively limits housing construction. THE MAYOR should empower a panel The key restriction is the floor-area to revisit the city’s land-use regula- ratio, which determines how much tions and building codes. It should be square footage may be constructed on a a large and diverse group including piece of land. A ratio of 1, for example, residents, community board mem- essentially means that only a one- or bers, real estate professionals, two-family house can be built: 1 square small business owners, corporate foot of housing per square foot of lot. The executives, transportation pro- winners and losers from age. The surging population enjoys its tallest Manhattan high-rises typically go fessionals, urban planners and such a large-scale change benefits and participates in its growing up in areas with a base ratio of 10. politicians, and chaired by a and determine a clear and impar- economy. But are we prepared to con- About 60% of all residential prop- non­partisan, experienced public tial mechanism to compensate those struct the buildings sorely needed for erties are zoned with a ratio of 1 or servant with gravitas. who are negatively affected. That would this renaissance? I think we are, but we less. In other words, most of the city is THE PANEL should create comprehen- bring on board as many residents and must roll up our sleeves and agree to reserved for one- or two-family homes. sive zoning and building codes, as well businesses as possible. work together so all can enjoy the fruits Currently more than 90% of residential as maps, to reflect 21st-century needs. A PLAN to improve transportation, of the Big Apple. ■ structures in New York City are three Its plan should increase density in the such as by enhancing bus service, floors or lower; in Queens that number city’s outer parts to reduce pressure on reducing automobile use and expand- Jason M. Barr, an associate professor is 98%. Conversely, apartment build- housing prices. The objectives should ing subways and streetcars should be of economics at Rutgers University– ings of 20 stories or more account for a be to improve the city’s affordability, introduced. The improvements would Newark, is the author of Building mere 0.15% of all residential buildings. resiliency and quality of life. be paid for by development impact fees. the Skyline: The Birth and Growth

JASON M. BARR The city is decidedly low-rise and is THE REPORT should spell out the New York is entering a new golden of Manhattan’s Skyscrapers. ISTOCK

12 | CRAIN’S NEW YORK BUSINESS | April 10, 2017

P012_P013_CN_20170410.indd 12 4/6/17 6:47 PM VIEWPOINTS

The problem with free tuition Cuomo’s plan sounds good but would hamper students BY ROBINA C. SCHEPP

ov. Andrew Cuomo’s pro- dents to carry at least 15 credits. The al- opportunities that lead STEERING STUDENTS away from private colleges could posal to create a ­tuition- free ternative is piling on the very debt from to decades of high- limit their potential. degree program, the Excelsi- which Excelsior seeks to save them. er earnings, it erases or Scholarship, scores points Of greatest concern is that the gov- the very appeal of the Gfor good intentions. But its one-size-fits- ernor’s proposal excludes private, non- Excelsior Scholarship. Add to that the choice and all the benefits of private all approach carries hidden costs with profit colleges and universities. Not prospect of still having to work or take schools, the governor’s plan would hin- lifelong implications and ignores critical only does that limit the choices for on debt to cover costs other than tui- der earning potential and career success student needs. students seeking the best fit in terms tion. Proponents of the college afford- for generations of students to come. Under the plan, the state would cover of size, setting, location and cost, but ability plan have not acknowledged If affordability is the goal, Cuomo tuition costs at state and city universities it also closes the door on New York these inconsistencies. should expand state financial aid by for students whose families earn up to schools with a proven record of maxi- Excelsior also has the potential to increasing awards and extending the $125,000 per year. Amid widespread mizing graduates’ earning power, with- overburden the SUNY and CUNY sys- ­income ceiling for the Tuition Assis- debate about the value of higher educa- out regard to socioeconomic status. tems with students. That would promise tance Program, which already cov- tion and the growing burden of student Private, nonprofit schools must re- future management dilemmas for state ers full tuition at SUNY and CUNY debt, that would seem welcome news. main an option for anyone considering leaders as well as cost surges borne by schools for the lowest-income students. Yet, as is so often the case with anything a college education. Pace University’s taxpayers and would erode the quality By expanding TAP and proven pro- marketed as “free,” the governor’s plan academic model produces great out- of education students receive—making grams such as the Arthur O. Eve High- comes with sobering costs that make its comes for our graduates, and a 2017 the students less competitive and less er Education Opportunity Program, fine print required reading for anyone study ranked Pace first in New York employable. the Science and Technology Entry Pro- considering enrolling in college. and second in the nation at moving stu- Cuomo recognizes the value of gram and the Liberty Partnerships Pro- Tuition is just one of many expens- dents from the bottom of the income higher education and its vital role in gram and by creating a new program of es incurred in earning a college degree. scale to the top 20%. Yet the governor’s the lives of young people, but Excelsior graduate tuition assistance, New York Housing, books, meal plans and trans- proposal excludes Pace and more than mistakes eliminating the cost of tuition can make college accessible while pre- portation frequently rival or exceed the 100 other private colleges and universi- for successful fulfillment of the aca- serving educational choice. ■ cost of tuition. None of those are covered ties in the state. demic objective. The purpose of higher under the Excelsior Scholarship. Taking When free tuition comes at the ex- education is to empower young people Robina C. Schepp is vice president a job to pay those bills would be difficult pense of attending a school that may to realize their potential. In waiving of enrollment management at because the scholarship requires stu- offer a better fit and superior career tuition at the expense of educational Pace University.

Rethink affordable housing grassicpas.com Ease development fears and steer the middle class into ownership

“The psychology of pov- elected officials collapse in than half the national erty” (From the News- fear of a vocal few, there average. BE YOUR room, March 6) paints a seems to be little hope Last year a report by very bleak picture for the that our city will see the the Furman Center found future of not only afford- type of affordable housing that the median-priced BUSINESS BEST. able housing but for our it needs so badly. New York City home city in general. ROBERT MASCALI is affordable only to Jeremy Smerd’s obser- Dyker Heights, Brooklyn high-income households. vation that many poor The writer is a former Middle-income house- At Grassi & Co., we are much people view the city’s new deputy commissioner holds end up in the rental more than just your accounting affordable housing as of the Department of market, where they outbid firm: we are specialists specifically unattainable for them— Homeless Services. lower-income people for trained in a diverse range of not a way to move up but apartments and help drive industries to help your business instead a wedge to force BUY, DON’T RENT up rents, or they leave the succeed. Our client-centered them out—is a terrible Any discussion of increas- city entirely. approach towards positive indictment of this import- ing housing options for Low-income house- business improvements will ant program. middle-income New holds have the most help you reach the next level This view seems to Yorkers should focus on immediate needs, and of success. Grassi & Co. home ownership, not be shared by elected that’s where we should We are the company you keep. officials such as Council- rental housing (“Memo be concentrating our men Ydanis Rodriguez to the city: Don’t forget scarce resources. For the of Inwood and Jimmy middle-income housing,” rest, why not provide a Van Bramer of Sunny- CrainsNewYork.com). housing option that the side, who each killed an Middle-income house- market doesn’t and focus affordable project in their holds, defined as families on home ownership that district without any good of three earning between helps people build equity explanation. It is bad $103,749 and $134,640, and gain a stable foothold enough that those living have ample rental options. in their communities? 488 Madison Avenue, 21st Floor in poverty misunderstand What they lack is homes MOSES GATES New York, NY 10022 l 212.661.6166 Director, community planning how building this housing to buy in their price JERICHO, NY l RONKONKOMA, NY l WHITE PLAINS, NY l PARK RIDGE, NJ will help them and their range. Home-ownership and design

ISTOCK communities. But when rates in New York are less Regional Plan Association

April 10, 2017 | CRAIN’S NEW YORK BUSINESS | 13

P012_P013_CN_20170410.indd 13 4/6/17 6:47 PM AGENDA THE LIST TOP-PAID HOSPITAL EXECUTIVES AND EMPLOYEES Ranked by 2015 cash compensation

THE SCOOP TRENDS PAYING FOR PRODUCTIVITY SPECIAL TREATMENT Robert Kelly’s severance payment gave him the largest executive raise from the previous year. The three highest doctor raises went to surgeons at Catholic Health Services hospitals. he latest edition of Crain’s annual hospital compensation rankings fea- ture a major change: Catholic Health Services of Long Island has taken EXECUTIVES over several top spots. ROBERT E. KEVIN F. GLORIA D. ROBERT C. SUSAN Eight Catholic Health Services executives and employees were KELLY, M.D. LAWLOR REEG GARRETT GARRUBBO Tranked on the lists, up from just two a year ago. The surge was punctuated by the (No. 1 on list) (No. 9) (No. 7) (No. 6) (No. 25) three largest raises handed out to New York doctors, along with the addition of St. Francis Hospital’s electrophysiology chairman, Dr. Joseph Levine, who was the +$3.3M +$2.1M +$1.7M +$1.6M +$1.6M second-highest-paid employee in 2015. EMPLOYEES “It is an absolute truth that the New York marketplace is highly competitive, SATHISH MORGAN DOUGLAS DAVID TODD especially for high-end programs,” said Ron Seifert, senior client partner at Korn SUBBAIAH, M.D. CHEN, M.D. PETRACO, M.D. SAMADI, M.D. ALBERT, M.D. Ferry Hay Group. “Electrophysiology, neurology and oncology are clinical spe- (No. 5) (No. 6) (No. 20) (No. 1) (No. 11) cialties you’ll see nationally across the highest-paid categories and particularly in New York.” +$2.8M +$2.8M +$1.4M +$1.1M +$0.9M Only one employee’s compensation surpassed Levine’s $5.7 million: the $6.7 NOTE: Raise rankings omit two doctors whose 2014 cash compensation is not available. million earned by the controversial Dr. David Samadi. Some 70% of the Lenox Hill Hospital urology chairman’s surgeries from mid-2013 through mid-2016 NETWORK PERKS overlapped, the Spotlight team at The Boston Globe reported last month. When North Shore-LIJ continues to lead New York hospital systems with the most staffers on the list. Samadi’s cases were double-booked, he left operating duties to his residents, who Total number of execs/employees often worked unsupervised, the paper’s probe found. Surgeries were reportedly NORTH SHORE-LIJ botched on some patients who did not consent to having their procedures done by 11 trainees. Samadi, whose compensation from Lenox Hill’s parent company, North- NEW YORK-PRESBYTERIAN well Health, is performance- and volume-based, is now under investigation by 9 state regulators. CATHOLIC HEALTH SERVICES OF LONG ISLAND “Clinicians are trying to see as many patients as they possibly can to have a 8 clinical impact on the communities and patients they serve,” said Seifert. “The MOUNT SINAI HEALTH SYSTEM dimensions that consumers need to step back and reflect on are the quality of the 6 care, the service and the clinical outcome.” — GERALD SCHIFMAN SOURCES: Form 990 tax filings from 2014 and 2015

TOP-PAID HOSPITAL EXECUTIVES TOP-PAID HOSPITAL EMPLOYEES

OFFICER/ TOTAL CASH COMP. OTHER TOTAL CASH COMP. OTHER RANK DIRECTOR/TRUSTEE HOSPITAL/SYSTEM FROM ORG./FROM RELATED ORGS. COMP. RANK EMPLOYEE HOSPITAL/SYSTEM FROM ORG./ FROM RELATED ORGS. COMP.

Robert E. Kelly, M.D. New York-Presbyterian Hospital $6,361,9281 $57,896 David Samadi, M.D. Lenox Hill Hospital $6,694,079 $55,176 1 president $6,361,928/$0 1 chair, urology $6,694,079/$0 Robert I. Grossman, M.D. NYU Langone Medical Center $5,183,2662 $702,680 Joseph Levine, M.D. St. Francis Hospital $5,687,840 $38,930 2 chief executive and dean $2,591,633/$2,591,633 2 chief, electrophysiology $5,687,840/$0 Steven J. Corwin, M.D. New York-Presbyterian Hospital $4,882,0763 $209,767 Mark Sultan, M.D. Beth Israel Medical Center $4,959,310 $44,618 3 president and chief executive $4,882,076/$0 3 chief, plastic and $4,959,310/$0 4 reconstructive surgery Steven M. Safyer, M.D. Montefiore Medical Center $4,283,893 $51,255 4 president and chief executive $0/$4,283,893 Richard Shlofmitz, M.D. St. Francis Hospital $4,256,929 $40,536 chair, cardiology $4,256,929/$0 Kenneth L. Davis, M.D. Mount Sinai Health System $4,083,824 $63,931 4 5 president and $1,416,270/$2,667,554 Sathish Subbaiah, M.D. St. Charles Hospital $4,186,294 $22,628 chief executive 5 neurosurgeon $4,186,294/$0 Robert C. Garrett Hackensack University Medical Center $3,953,6185 $936,072 Morgan Chen, M.D. St. Charles Hospital $4,153,712 $51,556 6 governor, president and chief executive $3,953,618/$0 6 orthopedic surgeon $4,153,712/$0 Gloria D. Reeg New York-Presbyterian Hospital $3,225,1026 $39,445 Mark Urken, M.D. Beth Israel Medical Center $3,616,109 $60,379 7 senior vice president and $3,225,102/$0 7 chief, head and $3,616,109/$0 chief investment officer neck surgical oncology Michael J. Dowling North Shore-LIJ Health System7 $3,221,785 $52,572 Jacob Shani, M.D. Maimonides Medical Center $3,496,836 $39,930 8 president and chief executive $0/$3,221,785 8 chair, heart and vascular center $3,496,836/$0 Kevin F. Lawlor8 Huntington Hospital Association $2,762,433 $0 Robert Michler, M.D. Montefiore Medical Center $3,197,269 $51,255 9 president and chief executive $2,762,433/$0 9 chair, surgery and $0/$3,197,269 9 cardiothoracic surgery Phyllis R. Lantos New York-Presbyterian Hospital $2,718,558 $58,917 10 executive vice president, $2,718,558/$0 Eugene Krauss, M.D. North Shore University Hospital $2,985,324 $46,628 chief financial officer and treasurer 10 director, orthopedics $2,985,324/$0 Craig B. Thompson, M.D. Memorial Sloan Kettering Cancer Center $2,483,680 $360,957 Todd Albert, M.D. Hospital for Special Surgery $2,934,195 $56,326 11 president and chief executive $2,483,680/$0 11 surgeon in chief and $2,934,195/$0 10 medical director Alan D. Guerci, M.D. Catholic Health Services of Long Island $2,376,352 $367,629 12 president and chief executive $2,376,352/$0 Lyle Leipziger, M.D. Long Island Jewish Medical Center $2,852,734 $55,176 11 chief, plastic and $2,852,734/$0 Mark E. Larmore New York-Presbyterian Hospital $2,322,075 $131,580 12 reconstructive surgery 13 group senior vice president, $2,322,075/$0 chief financial officer and treasurer Philip Gutin, M.D. Memorial Sloan Kettering Cancer Center $2,706,888 $53,608 12 chair, neurosurgery $2,706,888/$0 Bernard Birnbaum, M.D. NYU Langone Medical Center $2,302,701 $35,648 13 14 senior vice president, vice dean $2,302,701/$0 Baron Lonner, M.D. Beth Israel Medical Center $2,578,763 $42,047 and chief of hospital operations 14 chief, spine surgery $2,578,763/$0 Philip O. Ozuah, M.D. Montefiore Medical Center $2,285,64513 $697,133 George Petrossian, M.D. St. Francis Hospital $2,257,315 $48,142 15 executive vice president $0/$2,285,645 15 director, interventional $2,257,315/$0 and chief operating officer cardiovascular procedures Maxine Frank New York-Presbyterian Hospital $2,272,60714 $55,341 Alexander Ovchinsky, M.D. New York Eye & Ear Infirmary $2,248,682 $21,072 16 executive vice president, $2,272,607/$0 16 assistant professor, $2,248,682/$0 chief legal officer clinical otolaryngology Herbert Pardes, M.D. New York-Presbyterian Hospital $2,235,94815 $60,065 Gregory Fontana, M.D.1 Lenox Hill Hospital $2,226,591 $0 17 executive vice chair $2,235,948/$0 17 chair, cardiothoracic surgery $2,226,591/$0

14 | CRAIN’S NEW YORK BUSINESS | April 10, 2017

P014_P015_CN_20170410.indd 14 4/6/17 6:45 PM TOP-PAID HOSPITAL EXECUTIVES TOP-PAID HOSPITAL EMPLOYEES

OFFICER/ TOTAL CASH COMP. OTHER TOTAL CASH COMP. OTHER RANK DIRECTOR/TRUSTEE HOSPITAL/SYSTEM FROM ORG./FROM RELATED ORGS. COMP. RANK EMPLOYEE HOSPITAL/SYSTEM FROM ORG./ FROM RELATED ORGS. COMP.

Robert L. Glenning Hackensack University Medical Center $2,224,85616 $479,420 Varinder Singh, M.D. Lenox Hill Hospital $2,168,043 $55,176 18 executive vice president $2,224,856/$0 18 interim chair, cardiovascular medicine $2,168,043/$0 and chief financial officer Han Jo Kim, M.D. Hospital for Special Surgery $2,118,536 $33,583 Louis A. Shapiro Hospital for Special Surgery $2,223,345 $69,791 19 orthopedic spine surgeon $2,118,536/$0 president and chief executive $1,778,675/$444,670 19 Douglas Petraco, M.D. St. Charles Hospital $2,038,222 $53,996 Mark J. Solazzo North Shore-LIJ Health System7 $2,196,56517 $556,379 20 orthopedic surgeon $2,038,222/$0 executive vice president $0/$2,196,565 20 David Rivadeneira, M.D. Huntington Hospital Association $2,036,190 $55,176 and chief operating officer 21 director of surgical services $2,036,190/$0 Andrew Brotman, M.D. NYU Langone Medical Center $2,163,698 $26,000 and director of colorectal surgery senior vice president, vice dean $1,081,849/$1,081,849 21 Newell Robinson, M.D. St. Francis Hospital $1,997,400 $50,802 and chief clinical officer 22 chair, cardiothoracic and $1,997,400/$0 John Federspiel New York-Presbyterian/ $2,107,04618 $44,360 vascular surgery president Hudson Valley Hospital $2,107,046/$0 2 22 Samuel Scheinerman, M.D. Lenox Hill Hospital $1,994,355 $46,697 Edward M. Dinan19 New York-Presbyterian/ $2,097,569 $24,989 23 chair, cardiothoracic surgery $1,994,355/$0 president and chief executive Lawrence Hospital $2,097,569/$0 23 Robert Rosen, M.D. Lenox Hill Hospital $1,976,251 $46,697 Barry H. Ostrowsky Barnabas Health20 $2,091,34721 $286,430 24 chief, interventional radiology $1,976,251/$0 24 president and chief executive $0/$2,091,347 and vascular services Susan Garrubbo Barnabas Health Ambulatory $2,021,40122 $25,215 Saadi Ghatan, M.D. St. Luke’s-Roosevelt Hospital Center3 $1,924,523 $37,751 25 president and chief executive Care Center $0/$2,021,401 25 chair, neurosurgery $1,924,523/$0

Cash compensation includes base compensation, bonus and incentive compensation, and other reportable compensation from the organization and related organizations. Other compensation includes nonreportable compensation, deferred compensation, retirement plan benefits, health care benefits and other fringe benefits from the organization and related organizations. SERP-supplemental executive retirement plan. Individuals may have additional titles. Hospital employee compensation may not include medical school pay. Notes on top-paid executives: 1-Kelly left in September 2015. Includes $3,471,254 in severance pay and a $694,013 participation in a SERP plan. 2-Includes a $671,074 SERP contribution and a $562,689 SERP distribution. 3-Includes a $1,034,843 participation in a SERP plan. 4-Includes a pooled supplemental retirement plan distribution of $1,300,000. 5-In 2015 Garrett stepped down as president and CEO of the hospital but continued in these roles as head of the Hackensack University Health Network. Includes $168,840 in vested and $287,897 in unvested contributions to a 457(f) plan, along with $1,536,397 in vested contributions to a SERP plan. 6-Reeg retired in 2016. Includes a $1,343,973 participation in a SERP plan. 7-North Shore-LIJ Health System became Northwell Health in January 2016. 8-Lawlor retired at the end of 2014. 9-Includes a $829,614 participation in a supplemental, nonqualified retirement plan. 10-Includes a $314,000 participation in a SERP plan. 11-Larmore left in January 2015. Includes $2,220,000 in severance pay and a $120,029 participation in a SERP plan. 12-Birnbaum passed away in September 2015. 13-Includes accrued and unpaid service costs of $646,122. 14-Includes a $682,143 participation in a SERP plan. 15-Includes a $213,013 participation in a SERP plan. 16-Includes $106,740 in vested and $29,283 in unvested contributions to a 457(f) plan, and $854,231 in vested contributions to a SERP plan. 17-Includes a $509,112 contribution to a SERP plan. 18-Federspiel retired in July 2016. Includes a $807,902 participation in a supplemental, nonqualified retirement plan. 19-Dinan retired in September 2015. 20-Barnbas Health merged with Robert Wood Johnson Health System in March 2016, becoming RWJ Barnabas Health. 21-Compensation includes a $250,000 long-term incentive plan contribution. 22-Compensation includes a $894,375 SERP distribution. Notes on top-paid employees: 1-Fontana left in November 2014. 2-Scheinerman began employment at Lenox Hill in February 2015. 3-The tax filing for St. Luke’s-Roosevelt Hospital Center includes Mount Sinai St. Luke’s and Mount Sinai West (formerly known as Mount Sinai Roosevelt). Research by Gerald Schifman and Melinda Berkman.

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April 10, 2017 | CRAIN’S NEW YORK BUSINESS | 15

P014_P015_CN_20170410.indd 15 4/6/17 6:45 PM ENTERTAINMENT | LOCATIONS

READY FOR A CLOSEUP: While Connolly works on Wall Street, his apartment does cameos on TV.

SPACE ODYSSEY The boom in TV and movie production has location scouts paying thousands per day to rent New Yorkers’ homes. But neighbors are fed up

BY MIRIAM KREININ SOUCCAR

ometimes money really does fall into your lap. A few years ago Bill Connolly’s upstairs neighbor on North Moore Street allowed a film crew to shoot The Other Woman in her floor- through apartment. A location manager knocked on Connolly’s door to ask if the production could rent out his luxury bachelor pad for stars SCameron Diaz and Leslie Mann to rest in between takes. Not only did Connolly pocket some cash for his trouble (he won’t say how much), but he got to hang out with the stars. One Friday, as filming continued

BUCK ENNIS late into the night, Connolly, Diaz and Mann did shots of tequila in his swank,

16 | CRAIN’S NEW YORK BUSINESS | April 10, 2017

P016_P018_CN_20170410.indd 16 4/6/17 8:59 PM READY FOR A CLOSEUP: While Connolly works on Wall Street, his apartment does cameos on TV.

GET OUT: Gould says location shoots cost him parking fines and lost sleep.

professionally decorated living room. “I figured they apartment, a show can pay anywhere from $5,000 tor driving up the competition. But another one, were filming a comedy and this would make them to $20,000 per day—income that is completely tax- city residents say, is the 2016 law prohibiting most more funny,” he said. free if the rental is for fewer than 14 days. But a lo- ­Airbnb listings. E-commerce entrepreneur Laura Connolly, a managing director for a Wall Street cation doesn’t even need to be camera-ready. Crews Meyer was making nearly $700 a night from tourists asset-management firm, has been contacted several also pay people to rent out their driveway for trucks, staying in her 2,500-square-foot Greenwich Village more times by the same location-scouting team. For generators or even a Porta-Potty. Recently in Forest apartment until her neighbors started to complain. two seasons of the hit Showtime series The Affair, Hills, Fucci said he doled out a few hundred dol- She recently started renting it out for music videos Connolly’s 2,900-square-foot, four-bedroom was lars per house for the right to block driveways so for a few thousand dollars a day and is eagerly trying the home where philandering lead character Noah he could park large trucks on a street. The Tina Fey to attract even-more-lucrative film shoots. moved after his wife kicked him out. show Unbreakable Kimmy Schmidt paid a Green- “You have to get crafty with ways to make money “The shoots are quick, and they pay you a lot,” point homeowner $1,500 to shoot a scene on the in order to live in New York,” Meyer said. “It’s also Connolly said, acknowledging that he’s dined out on front steps of her brownstone. something cool and gives you bragging rights.” stories of hosting Diaz and Mann. “All my friends An overwhelming number of New Yorkers want want to rent out their apartments now.” in on the action, far more people than the film in- Playing the antagonist With a record number of film crews scouting lo- dustry could ever use. Debbie Regan, a location The commotion and inconvenience created by cations in the city, spurred by the state’s generous agent who brokers filming locations for Odd Mom filming on location is upsetting New Yorkers who film production tax break, locals are turning their Out, said the number of listings has more than dou- aren’t profiting from the shoots, or just don’t want assets into income by renting out their apartment or bled in the past three years. “I cannot keep up,” said the intrusion of film production near their homes. even just their front stoop to film companies. But as Regan, who maintains a list of more than 6,000 rent- Rolf Carle, a woodworker in Greenpoint, started more New Yorkers welcome crews into their build- able locations. “People are calling me day and night.” a Facebook page for neighbors to share information­ ings, their neighbors are getting fed up over the ac- The high cost of living is certainly one fac- CONTINUED ON PAGE 18 companying hassles, like no parking and klieg lights turning their night into day. “Some people don’t want anything to do with us, and some people hate us,” said Michael Fucci, loca- NONPROFITS WITH ONSCREEN CHEMISTRY tion manager for The Americans on FX. “But most of the people love us because they make money.” IT’S NOT JUST RESIDENTS who are benefiting from the During the last season, which ended in May, location-rental boom. Some nonprofits are finding the extra a record 52 prime-time episodic television series income attractive as well and may even depend on it. filmed in the five boroughs, a 13% increase from the The Nuyorican Poets Café, a nonprofit performing-arts previous season. The city also was home to 336 fea- venue in the East Village, now rents its building out for film ture-film projects, an almost 40% increase. shoots nearly 30 times a year, up from around two shoots in Much of the shooting is done in film studios— 2008. Daniel Gallant, the venue’s executive director, said the there are now 60 state-of-the-art soundstages and organization makes around $100,000 from the rentals, a dozens more lesser-equipped ones—but virtually big contribution to its $1 million annual budget. The revenue every show or movie also shoots on location. The helps the nonprofit offer free educational programs and Americans crew uses up to 15 locations for just one keeps ticket prices low. episode. In what it says was a typical week, the May- Fifteen productions, including Showtime’s Billions and or’s Office of Media and Entertainment issued 149 the Netflix series The Get Down, filmed at the Explorers Club location permits for 72 projects to film between (pictured) on the Upper East Side last year. The organization makes thousands of dollars a day from March 9 and March 15. shooting, which helps pad its $2 million operating budget. In 2016 it gave out $250,000 in grants to Despite the increased demand, the opportunity send students into the field for scientific research, thanks in part to the filming revenue. to turn one’s apartment into a movie studio is often The club has its archivist present at all shoots to protect historic artifacts, like the club flag carried by a case of luck. Location scouts scour neighborhoods astronauts on the Apollo 11, but Executive Director Will Rosman said there has never been a bad experi- that suit their project, then leave notices in hundreds ence. After Billions turned Rosman’s office into a bedroom where Paul Giamatti’s character stayed after of residents’ mailboxes. Typically 50 to 60 interested a fight with his wife in the season finale, the film crew repainted it for him. parties will call back, and, of those, the director vis- “Sometimes we rent the club for a wedding and it’s a nightmare after,” Rosman said. “With the film its just a handful before picking one. productions, there might be 80 people working on the set, and when they leave, the place looks better Every rental is a negotiation, but location manag- than before they came.” — M.K.S. ers have wads of cash at their disposal. For an entire

April 10, 2017 | CRAIN’S NEW YORK BUSINESS | 17

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BUCK ENNIS 18 ENTERTAINMENT |

CRAIN’S NEWYORKBUSINESS prevents filming for weeks or months. “Complaints putthey individual blocks on ahiatus list, which complaint process.” The citydysfunctional has a approachvery theto area gets shot over and over again, it’s aproblem. don’t deny it,” Carle said. “But one when particular ophone as loud as she could. shooting, aneighbor had her daughter play- sax the show While one tactics. was TV resorted to guerrilla sive to his and his neighbors’ plight that have they precinct police to local the resolve issue. the voice mailbox Carlecalled finally was full. number for NYPD’s the movie unit, but the the never heardthey called they back. Then oned notices the for more information, but location the manager’scalled number list- towed,be Carle said he and his neighbors show up but not cars their certain wouldn’t that company’specting the wouldn’t trucks pastel-colored No Parking notices. Sus- tion team papered trees the on Milton Street with February, KimmySchmidt Unbreakable the show up. The nightbefore asnowstormearly in parking around neighborhoodbut the don’t then tion companies sometimes notices post prohibiting sometimes on goes until midnight. ing from fumes diesel generators andthat filming and Williamsburg, said he’s tired of- big spew trucks many as 50shoots inasingle week inGreenpoint on streets. their Carle, has who documented as and complaints about growing the number of shoots City officials that say one to twoevery months, “There arebeingjobs created thefilming—Iby He saidunrespon citythe so has been - Compounding his frustration, Carle said produc-

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LOCATIONS

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Ap ri l 10,2017 produc “THE SHOOTSAREQUICK,AND - FRIENDS WANTTORENTOUT THEY PAY YOUALOT. THEIR APARTMENTS NOW” complaints on fall deaf ears.” dow that 911. he called up” with generators the and lights outside his- win duringclosed evening. the One night he was “so fed usually forward himto mayor’s the office, which is four different projects coming in.” a shoot happening for and three to signs everywhere back lot,”past said.weekend Gould there “This was have trucks the because lefthim no park.place to fromsleep late-night the shoots and has gotten tickets situation has gotten progressively worse. He has lost Greenpoint with his wife three years ago, said the enough either. respite inhis neighborhooddon’t periods last long don’ting they 311because get results. Carle said the are about filming.” amonth1 million calls to 311,and just 100of those city’s commissioner. film “On averagethere are about filming low,”are very said Julie theMenin, “That did “That work,”said, he “but all usually our 311,but to saidGould he call has tried operators “Greenpoint become hasaHollywood basically Dan Gould, acultural analyst moved who to Put-out residents argue that they’ve stopped- call ALL MY

see yoursee neighborhoodinafilm.” ing themselves,” said. “It’s Robertson you when fun modate our neighbors and help getthem some- film at Broadway, is which inside hiatus the zone. Hispanicthe of on America West Society Street 155th just got to apermit film forday a groundsthe on of cause aHugh Jackman movie, Greatest The Showman help get off them the hiatus list. They be- are hopeful hired production manager and lobbyist Slate Sallie to tree guards to protect trees. the And now have they waffles. free They tohired serve atruck have bought from renting his apartment drama 666 to ABC the lives inThe Grinnell, made about $15,000in2013 Black offshoots theand series Netflix apartments have appeared on Law &Order and its ers. Its majestic 1910 limestone and façade stately Washington Heights, is afamiliar watch sight to TV - Awaiting theirbigbreak arehood eager to get offthe city’s hiatus list. “We to come are up trying with away to accom- The Grinnell, a building Riversideat 800 Drive in Despite hassles, the residents of one neighbor . Bruce Robertson, aCorcoran Robertson, . Bruce broker who pease complainers.pease Acouple of years ago they his pro-filming neighbors have to tried ap- knowledge.their But said he and Robertson on block the had cars their towed without shoots around The in Grinnell April 2015. son says citythe stopped permitting movie boring buildings complained,- and Robert benefited. everyone so Butpeople - in neigh pany paid fees to co-opthe board as well, Park Avenue The hassles weren’t minor.all Neighbors . He said production the com- HOME A LOAN: HOME A to shootinhisstatelyapartment. seekingTVshows is eagerly Orange Is the New ■ Robertson Robertson

- ,

4/6/17 8:59 PM SUBJECTTAXIS | MEDALLION | CATEGORY MARKET

“THERE AREN’T FIVE OF THESE LOW-PRICED SALES, OR 10 OF THEM,” ONE TAXI INDUSTRY LAWYER SAID. “THERE’S JUST THIS ONE”

include mortgages taken out against the higher, earlier valuation of their medallion. State regula- tors in February took control of troubled Melrose Credit Union, which managed thousands of taxi loans, after delinquencies surged. Montauk Credit Union was seized for the same reason in 2015. Slump or catastrophe? Still, the small number of sales and their dif- fering circumstances have made it hard to gauge the market. Matthew Daus, a former head of the ne of the 13,587 pieces of tin that give TLC, recently had a CPA do an appraisal, using a yellow cabs the right to pick up street discounted cash flow analysis, for an independent hails sold in March for $241,000, a medallion, as part of a bankruptcy case. His finding H AV E CABS low not seen since the early 2000s was that, as of the end of last year, it had a value of and a far cry from the $1.05 mil- around $575,000. Olion that a similar taxi medallion fetched in 2014. Daus maintains that the industry’s performance For some quarters of the taxi industry, the sale has not been as bad as the decline in medallion HIT ROCK is one more sign of how far the yellow cab business prices would suggest. has deteriorated since Uber gained traction in New He noted that the total number of taxi trips York starting in mid-2014. The previous low for a fell 11% last year, to about 123.7 million, accord- BOTTOM? medallion sale during the past year was $325,000, ing to TLC data. The total dollar figure for yel- last April, though there also have been sales, some- low taxi fares fell by 9% last year, to $1.8 billion. times in foreclosure, for as much as $600,000. “They’re not great numbers,” he said, “but they’re A taxi medallion just sold But the low sales could be unreliable indicators, not catastrophic.” for the lowest price in more than given the rule changes implemented by the Taxi There is no question, however, that the busi- a decade. But new rules could and Limousine Commission to help stabilize the ness is in decline, which the industry blames partly market for medallions. on regulations—including wheelchair-accessibility help owners avoid huge losses The most recent change took effect March 21, mandates—that have been applied to cabs but not shortly after the $241,000 sale. It allows owners of to e-hail vehicles. “What this sale demonstrates is a single medallion to sell it to a fleet what we, as independent medallion BY MATTHEW FLAMM owner or to another so-called inde- owners, have been saying for the pendent owner. Previously, those FARE SALE past three years,” said Nino Hervias, independent owners could sell only a member of the Taxi Medallion to a buyer who did not already own Owner Driver Association. “The a medallion. With few investors TLC’s failure to regulate this indus- wanting to get into the taxi business, try fairly has destroyed our invest- independent owners have struggled ments and advanced the interests of to find buyers. That has depressed $241K a $60 billion corporate predator.” PRICE OF A MEDALLION prices further. sold last month Uber, meanwhile, maintains that The March rule change followed it is looking after the interests of the repeal last year of a regulation riders and of drivers who don’t own requiring independent owners to medallions. regularly drive the cab they own. “The price of a medallion is not The new rules “are not panaceas, $1M an effective measure of how well but they reduce the pressures in the PRICE OF A MEDALLION our transportation system is serving market, and a seller may have an fetched during the riders,” a company spokeswoman option other than going for the low- market’s peak in 2014 said. “Instead of serving banks and est price,” said Arthur Goldstein, medallion owners, we should focus attorney for the Taxicab Service Association, a on the ability to finally get an affordable, reliable group of credit unions. ride in communities outside of Manhattan, and The new rules also allow credit unions to work offering drivers more choice.” out arrangements with lease managers to take over Even with the rule changes, there might be more foreclosed medallions and have them continue to trouble ahead for medallion owners. earn money, rather than put them up for sale at dis- “Allowing corporate fleets to bid for indepen- tressed prices. dent medallions is a positive development and Goldstein added that the small number of sales could help stabilize the market,” said Keith Leggett, taking place showed that owners were betting that an analyst who follows credit unions. “However, the industry could turn itself around. “There aren’t the viewpoint of people who deal with distressed five of these [low-priced] sales, or 10 of them,” he assets and who track the taxi market is that lenders said. “There’s just this one.” are going to end up repossessing a large number of Nonetheless, credit unions have been hammered medallions. They will be coming onto the market by the decline in medallion prices and the inability in the second half of this year, and that will further

BUCK ENNIS of drivers to pay off their loans, which sometimes depress the price.” ■

April 10, 2017 | CRAIN’S NEW YORK BUSINESS | 19

P019_CN_20170410.indd 19 4/6/17 6:47 PM

P020_P021_CN_20170410.indd 20 to reducetheirtaxbills. andlandlordsfight homeowners APPEALS ADVOCATE:APPEALS

BUCK ENNIS 20 REAL ESTATE |

PROPERTY TAX PROPERTY CRAIN’S NEWYORKBUSINESS are contesting how much owe they A record number of New Yorkers Steinberg helps Steinberghelps

| TAX APPEALS for privilege the of owning a piece of Big the Apple

BY AARON ELSTEIN

|

Ap ri l 10,2017

S property bills. tax as moredecade people protest ever-rising their mission’s operations director, said with asigh. Tax Commission to clear dockets. the until November for 20hearing the officers the at city less is likely to take utes, it- neverthe more than 15min- last to supposed say no hearing is though rules the this year,filed and appeals have been record 55,000tax say.assessors A worth as much as building is not peoplewhich can argue that home their or office bills. tax property These days These about 35% more appeals eacharefiled season grownThehas even longerpastthe in “It’s along, long season,” Myrna Hall, com the - weekLast citythe began holding hearings at popular pastime in New York: in fighting pastime popular increasingly of an beginning the marks It hunt. also egg or Easter aseder plan and coats to put It’sson. away winter time the sea of baseball start the means pringtime “PROPERTY TAXES AREABIG SO WHATEVER THEBILLIS AND GROWINGEXPENSE, COULD BEWELLWORTH FIGHTING” - owners and landlords fight City forHall 40 years. tration is forecasting property revenue tax rise will and rents. past 10 years, reflecting a surge in estatereal values income, and revenue from hasthem doubled in the rolls. Property taxes are city’s the largest source of triple growth the rate of properties new on tax the year than were ago. adecade filed That’s more than they havethey on succeeded 17%of challenges. mission data. For years, past the several however, reduction 13%of time, the according to Tax- Com assessmentpeople appealed who tax their won a Taking onthetaxman F There’s no end insight. The deBlasio adminis- Increasingly, fighting the pays off.decade A ago L A has helped home helped has alawyerberg, who said Richard Stein- worth fighting,” bill is well could be whateverso the growing expense, are abig and foreseeable future. annually for the by more than 5% “Property taxes P - 4/6/17 9:00 PM

BUCK ENNIS, COSTAR, NEWSCOM PRIZE FIGHTERS Some of the city’s leading businesses are major winners in the annual skirmishes. Last year Steve Sometimes it really pays to contest your property tax bill. Here are five buildings that got significant Ross’ Related Cos. won an $18 million cut in the reductions last year after challenging the city’s assessments. property tax bill for space in the Time Warner Cen- ter, according to an Independent Budget Office analy­sis of Tax Commission data. The bills for the Palace Hotel on Madison Avenue and the Met Life Building were each cut by more than $5 million. President Donald Trump is playing the game, too. Last year his attorneys persuaded the city to cut the assessed value of his Trump Tower penthouse by $28,000, to $1.8 million—which reduced his prop- erty tax bill by $3,000. In his capacity as president of the Trump International Hotel and Tower board of managers, he also signed a complaint filed in state TIME WARNER MET LIFE PALACE PARAMOUNT RADIO court in which residents of the Central Park West BUILDING BUILDING HOTEL PLAZA CITY building argued that their assessments are too high. $17.8 million $5.6 million $5.4 million $2 million $678,000 Trump’s tax attorney, Joel Marcus, called the case “a reduction reduction reduction reduction reduction routine assessment challenge.” Although major landlords appeal assessments SOURCES: Tax Commission, Independent Budget Office as a matter of course, the greatest increase in fil- ings has come from individual home­owners. About 30,000 owners of co-op units, small condo buildings Bill de Blasio’s Park Slope home, then worth more state Legislature responded by dividing properties or houses filed appeals last year, about a third more than $1.4 million, was assessed at a value that trig- into four classes. than did so 10 years ago. The reductions sought in gered a $2,894 tax bill for the year, while a similarly Sometimes city assessors simply make mistakes such cases usually aren’t large, and tax officials tend valued home in Borough Park paid five times more. as they calculate the value of nearly 1.1 million to grant them. The mayor’s bill was low in part because the value properties annually. A few years ago a Midtown “Commissioners are sensitized by their superiors of Park Slope homes rose so explosively that assess- West warehouse was assessed as if it were a retailer. to listen sympathetically,” said an attorney who spe- ments—limited by the 6% rule—could not keep up. The landlord appealed, and his assessment was cut cializes in tax appeals. “If Mr. and Mrs. Jones come Last week the City Council described the cap on by 70%, according to a lawyer involved in the case. into court, give them a bone.” one-family through three-family homes, such as de In 2011 assessors set off a fury in Queens when an The growing frequency of people seeking to Blasio’s, as “one of the main drivers of inequity in unpublicized change in valuation methods caused reduce their tax bill in part reflects the city’s baroque the city’s property tax system.” The council proposed co-op assessments to soar by as much as 140%. property tax code. It starts with the sensible notion replacing it with a series of tax exemptions. Such a Inside the tax-appeals world, such cases are known that similar properties should be assessed similarly. change would require the blessing of Albany, which as yo-yo assessments. But it quickly gets complicated. has not reformed the city’s property tax system since Big sums can hinge on whether a Home Depot is In the 1980s the city started assessing build- 1981, six years after a judge ordered it do so. taxed as a store or a warehouse, if the second floor in ings based on how much rental income they could “It’s hard to reform because cutting one person’s a nightclub is assessed as much as the first or what produce. That formula mostly works fine for office property taxes means raising someone else’s,” said would be an acceptable office vacancy allowance. towers, but co-op and condo buildings are assessed Geoffrey Propheter, a property tax analyst at the Such an environment is ideal for lawyers, and there that way even if they don’t offer rental units. Their Independent Budget Office. are about 30 who dominate the property-tax appeals theoretical revenue is based on what nearby rentals business in the city. Steinberg said his firm handles fetch. That helps explain why the owner of a pricey Altered policies as many as 3,000 cases each year. Park Avenue co-op may end up paying little in Some might say the old system was better. Until For such professionals, nirvana can be found in taxes: because it’s next to a rent-regulated apartment the 1980s, assessments were based on market rates, a large condo tower full of overassessed units. That’s building. In addition, assessments for one-, two- using something called “fractional assessment.” because each owner’s appeal must be heard individ- and three-family homes typically can’t grow by more Assessors would determine the market value of a ually by the Tax Commission, giving lawyers whose than 6% annually in order to shield residents in hot property, and then assess it based on a small per- pay is based on how much they save clients many neighborhoods from surging tax bills. centage of that figure. But a state judge said that was bites at the apple. The cases are typically heard later But the system means that those who live in less illegal because it gave too much latitude to assessors, in the spring. prosperous parts of town can end up paying more. who tended to assess houses at low rates and com- “We call it Condo-mania,” said Hall, the Tax For example, a 2014 investigation showed that Mayor mercial and apartments properties at high ones. The Commission supervisor. “It goes on for a while.” ■

HIGH-PROFILE TAX BILLS

DIFFERENT TYPES of properties are taxed at different rates, and a tax bill is based on a building’s assessed or taxable value, not its estimated market value as determined by the city—a figure that is gener- ally much lower than what a buyer might actually pay for it. The upshot is that tax bills for many prominent New York buildings are not as high as one might expect. In January the Department of Finance estimated that the full market value of all New York City properties was $1.2 trillion, while the assessed taxable value was just $226 billion. Below are three of the city’s four property types. One- to three-family homes are in Class 1. Class 2 is composed of condominiums, cooperatives and rentals with four or more units. Class 4 represents commercial buildings. (We’ve excluded Class 3 buildings, which are owned by utilities and other special franchises.) ACTUAL CITY’S EST. MARKET MARKET TAXABLE TAX 2017 VALUE VALUE VALUE RATE TAX BILL CLASS 1 Mayor Bill de Blasio’s Park Slope home $1.9M $1.7M $17,194 19.991% $3,581 442 11th St., Brooklyn

CLASS 2 Donald Trump’s penthouse $100M $5.2M $1.8M 12.892% $190,597 725 Fifth Ave. LAVISH LOUNGE: The president’s $100 million CLASS 4 Empire State Building $3B $794M $358M 10.574% $36M Trump Tower penthouse is taxed as if it were 350 Fifth Ave.

BUCK ENNIS, COSTAR, NEWSCOM BUCK ENNIS, COSTAR, worth $5.2 million.

April 10, 2017 | CRAIN’S NEW YORK BUSINESS | 21

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NOTICE OF QUALIFICATION OF SWEETIE Notice of Qualification of STAHL EM- Notice of Qualification of 32-40 AND Notice of Qualification of NY SHOWER, PARTNERS, LP, App. for Auth. filed PLOYEES II LLC Appl. for Auth. filed 32-50 93RD STREET, LLC Appl. for LLC Appl. for Auth. filed with Secy. of with Secy of State of NY (SSNY) on with Secy. of State of NY (SSNY) on Auth. filed with Secy. of State of NY State of NY (SSNY) on 03/16/17. Of- 02/17/17. Office location: New York 03/29/17. Office location: NY County. (SSNY) on 09/15/16. Office location: fice location: NY County. LLC formed in County. LP formed in Texas (TX) on LLC formed in Delaware (DE) on NY County. LLC formed in Delaware Delaware (DE) on 10/18/16. SSNY 6/8/16. SSNY designated as agent of 02/24/17. SSNY designated as agent (DE) on 09/12/16. 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Notice of Formation of TENN NYP, LLC Notice of Formation of Glitterati Arts Notice is hereby given that a license, Notice of Formation of APO NYC 4 of Org. filed with Secy. of State of NY LLC with Secy. of State of NY (SSNY) with a pending Ser No., has been ap- OWNER, LLC Arts. of Org. filed with (SSNY) on 11/10/16. Office Location: on 2/7/2017. Office location: NEW plied for by Da Capo Corp, to sell liq- Secy. of State of NY (SSNY) on Nassau County. SSNY Designated as YORK County. SSNY designated agent uor, wine and beer at retail in a restau- 02/28/17. Office location: NY County. agent of LLC Upon whom process upon whom process may be served rant under the ABC Law at 322 Colum- SSNY designated as agent of LLC against it may be served. SSNY shall and shall mail copy of process against bus Ave, NY, NY 10023 for on- upon whom process against it may be mail process to TENN NYP, LLC 1855 LLC to: 600 Third Avenue, 2nd Floor, premises consumption served. SSNY shall mail process to Imperial Ave, New Hyde Park, N.Y. New York, NY 10017. Purpose: any Corporation Service Co., 80 State St., 11040. Purpose: Any lawful activity. lawful act. Albany, NY 12207-2543. Purpose: Any Notice of Formation of LIFESTYLE IN- lawful activity. TERNATIONAL LLC Arts. of Org. filed Notice of Formation of JM Alcalay LLC. Arts. Notice of formation of LORI TODD ASSO- with Secy. of State of NY (SSNY) on of Org. filed with NY Dept. of State on CIATES LLC. Arts of Org filed with Secy, 02/24/17. Office location: NY County. Notice of Qualification of PhaseCapital 3/28/17. Office location: NY County. Sec. of State of NY (SSNY) on 1/31/2017. Of- SSNY designated as agent of LLC LP Appl. for Auth. filed with Secy. of of State designated agent of LLC upon fice Location: NY Country, SSNY desig- upon whom process against it may be State of NY (SSNY) on 03/01/17. Of- whom process against it may be served and nated agent upon whom process may be served. SSNY shall mail process to fice location: NY County. LP formed in shall mail process to: CT Corporation Sys- served and shall mail copy of process Abraham Haber, 469 Fashion Ave., Delaware (DE) on 02/05/08. Princ. of- tem, 111 8th Ave., NY, NY 10011, regd. against LLC to principal business ad- Ste. 1301, NY, NY 10018. Purpose: fice of LP: 401 W. 14th St., 4th Fl., agent upon whom process may be served. dress: 210 E. 88th Street, #3B, NY, NY Any lawful activity. NY, NY 10014. SSNY designated as Purpose: all lawful purposes. 10128. Purpose: any lawful act, agent of LP upon whom process 0000203824 w.o against it may be served. SSNY shall Notice of Formation of PeJulJen LLC mail process to the Partnership at the Lemayny LLC Arts. of Org. filed w/ Notice of Formation of EastGold Holdings Arts. of Org. filed with Secy. of State of princ. office of the LP. Name and SSNY on 2/6/17 Off. in New York Co. LLC. Arts. of Org. filed with NY Dept. of NY (SSNY) on 02/23/17. Office loca- addr. of each general partner are avail- SSNY desig. as agt. of LLC whom proc- State on 12/27/16. Office location: NY tion: NY County. SSNY designated as able from SSNY. DE addr. of LP: c/o ess may be served. SSNY shall mail County. Sec. of State designated agent agent of LLC upon whom process National Registered Agents, Ltd., 850 process to Incorp Services, Inc., One of LLC upon whom process against it against it may be served. SSNY shall New Burton Rd., Ste. 201, Dover, DE Commerce Plaza, 99 Washington Ave, may be served and shall mail process to: mail process to Joel Handel, c/o 19904. Cert. of LP filed with Secy. of Ste. 805-A, Albany, NY 12210. The reg. 100 Park Ave, 16th Fl., Suite 1658, NY, Schnader Harrison Segal & Lewis LLP, State, DE Div. of Corps., 401 Federal agt. is Incorp Services, Inc. at same ad- NY 10017, principal business address. 140 Broadway, Ste. 3100, NY, NY St. - Ste. 4, Dover, DE 19901. Pur- dress. Purpose: any lawful activity. Purpose: any lawful activity. 10005. Purpose: Any lawful activity. pose: Any lawful activity. EXECUTIVEMOVES

this is a great move

CHICA GO B U S INESS CHICAGOBUSINESS.COM | October 17, 2016 CHICA GO B U S I N E S S CHICAGOBUSINESS.COM | October 17, 2016 PEOPLEEXECU TIVEON THE MO VESMOVE NEW HIRES SPROMOTIONS SBOARD APPOINTMENTS PEOPLEEXECU ONTIVE THE MO MOVEVES NEW HIRES SPROMOTIONS SBOARD APPOINTMENTS

MARKETING/MEDIA MARKETING/MEDIA MNI Targeted Media Inc., MNI Targeted Media Inc., Stamford, CT Stamford, CT Heather Hein has been promoted Heather Hein has been promoted to Vice President of Sales for the to Vice President of Sales for the Northwestern Region, which spans Northwestern Region, which spans from Chicago to San Francisco. from Chicago to San Francisco. Hein’s promotion was part of a Hein’s promotion was part of a national realignment, designed national realignment, designed to ensure that MNI continues to to ensure that MNI continues to deliver industry-leading customer deliver industry-leading customer service to its more than 1,200 service to its more than 1,200 clients across the country. clients across the country.

Reprinted with permission from Crain’s Chicago Business. © 2016 Crain Communications Inc. All rights reserved. Further duplication without permission is prohibited. Visit www.chicagobusiness.com/section/reprints.

Reprinted with permission from Crain’s Chicago Business. © 2016 Crain Communications Inc. All rights reserved. Further duplication without permission is prohibited. Visit www.chicagobusiness.com/section/reprints.

Honor your executives with a frame or plaque of their Executive Moves listing in Crain’s. Choose from a pewter frame with black matte and glass overlay, a metal shadow box frame with black matte, or a plaque.

Contact Krista Bora for more information [email protected] tel 212.210.0750”

APRIL 10, 2017 | CRAIN’S NEW YORK BUSINESS | 23

P022-23_CN_20170410.indd 23 4/6/2017 3:09:08 PM GOTHAM GIGS

CERTIFIED CINEPHILE: Cohen owns a library BY LANCE PIERCE of Buster Keaton silent movies.

Reel estate developer A billionaire film buff restores the Quad Cinema CHARLES S. COHEN

harles S. Cohen loved movies so much as a to be in exhibition,” he said. “There is a shortage of quality AGE 65 child that he started reading Variety at age 14. places to show independent, foreign and art-house films, BORN Harrison, N.Y. He even made his own short films during high and I also wanted a place to show my own films.” school and college. But then he put aside his Those include Frozen River, a crime drama he produced RESIDES Midtown East and Greenwich, Conn. (with additional Cdreams of becoming a director and went to law school. about a desperate mother who becomes a smuggler across homes in Palm Beach, Fla., and “It was more practical to get into movies from the busi- the U.S.-Canada border. About 10 years ago, Cohen’s West Hollywood, Calif.) ness side,” Cohen said. attorney introduced him to a client’s wife, who EDUCATION B.A. in English, Tufts Instead of moving to Hollywood after getting “I wanted needed financing for the film. Cohen liked the University; J.D., Brooklyn Law School his J.D. degree, he joined the business his father a place to story and invested $340,000, more than a third USER SURVEY The new Quad and uncles started, Cohen Brothers Realty. “My show my of the budget. Frozen River made a small profit will have a wine bar and larger roots are here, and my family was here,” he said, and earned two Oscar nominations. That got bathrooms with more fixtures. adding that he “didn’t have the right contacts” own films Cohen started in the film business and, he said, “Whether I’m developing an office ” building or a retail project, I go with to become an entertainment lawyer. But he did “I don’t do anything halfway.” my own experience as a consumer.” have connections in real estate, becoming president and He has produced a half-dozen more films since then PASS THE POPCORN Cohen, who CEO of Cohen Brothers, which owns properties such as and started Cohen Media Group, which amassed a usually watches movies at one of 3 Park Ave. South and the Decoration and Design Building. revenue-generating library of 800 films (such as Buster his personal home theaters, plans to Even as his fortune grew—Forbes estimates his net Keaton’s The General and Merchant Ivory’s Howards End). be around the Quad a lot. He hopes worth at $2.8 billion—Cohen never lost his love of film, He also became a distributor, including for The Salesman, his four children will get “behind the refreshment counter to pitch in.” publishing Trivia Mania, a movie quiz book, in 1985. Oscar winner this year for Best Foreign Language Film. After trying unsuccessfully to buy movie theater chains, In addition to the Quad, Cohen is rebuilding a theater CREATIVE LICENSE He said he might find it hard to withhold his he has found a way to merge his real estate and film talents. in West Palm Beach, Fla., and plans to buy one on the West opinions regarding what movies On April 14 he plans to reopen the lavishly renovated Quad Coast. “I see the Quad as another step in the long road to the Quad should show. But “I’ve Cinema on West 13th Street. Built in 1972, New York’s first being as good as I can at everything I do,” he said. developed the ability to trust people multiplex will have one screen devoted to old films, while Eventually, he said, that will include directing a film: who are very good at what they do.”

BUCK ENNIS the other three will show new releases. “I’ve always wanted “I’ll get to that at some point.” — STUART MILLER

24 | CRAIN’S NEW YORK BUSINESS | April 10, 2017

P024_CN_20170410.indd 24 4/7/17 2:23 PM SNAPS

Battling the HIV/AIDS epidemic GMHC, formerly known as the Gay Men’s Health Crisis, celebrated its 35th anniversary March 23 at Highline Stages by honoring former President Bill Clinton; Peter Staley, an HIV/AIDS and LGBT rights activist; and Jes Staley, CEO of Barclays, for their work fighting HIV/AIDS and defending LGBT rights.

Chelsea Clinton, vice chair of The Clinton Foundation, accepted the award on her father’s behalf. She is flanked by GMHC board co- chairs Michael Harwood, a partner at Kasowitz, Benson, Torres & Friedman, and Roberta Kaplan, the partner at Paul, Weiss, Rifkind, Wharton & Garrison who won the Supreme Court case legalizing Peter Staley, a JPMorgan banker before same-sex marriage, as well as Kelsey Louie, CEO of GMHC. The he became an activist in the late 1980s, and event raised $700,000. his brother Jes Staley, who had a three-­ decade career at the bank and headed its investment banking unit, at the benefit.

Helping women tell stories onstage Scholarships to break WP Theater, formerly Women’s Project the cycle Theater, raised $210,000 Former Vice ­President at its March 27 gala. Joe Biden, here with Actress Debra Messing, Gov. Andrew ­Cuomo, pictured here with fellow was honored by national thespians Kathy Najimy homeless services non- and Dan Finnerty, profit Help USA. To cele- was an honoree. brate its 30th anniversary, the organization awarded 30 scholarships to survi- vors of domestic abuse in support of their education- al and professional goals.

Actresses Margot ­Bingham and Genny Lis Padilla at the gala, held at The Edison Avis Richards, founder of Birds Nest Foundation, and PIX11 weatherman Irv ­Ballroom. “Mr. G” Gikofsky at The Plaza Hotel for Help USA’s anniversary luncheon, which raised more than $500,000—a record.

CRAIG WARGA, MATTHEW MCDERMOTT, PRETTY INSTANT MCDERMOTT, CRAIG WARGA, MATTHEW SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO: [email protected].

April 10, 2017 | CRAIN’S NEW YORK BUSINESS | 25

P025_CN_20170410.indd 25 4/7/2017 4:03:11 PM FOR THE RECORD*

NEW IN TOWN opened its fourth city loca- in a transaction worth square feet at 500 Fifth Ave. bank plans to move from Asking rents in the building tion, in Williamsburg. $174,539. She now holds The publishing company 712 Fifth Ave. and will range from $62 to $65 per ■ Chillhouse 22,625 shares. currently occupies 78,000 occupy the 53rd floor of square foot. The landlord, 149 Essex St. square feet and plans to the building between West SL Green Realty, was rep- There’s plenty of room for BANKRUPTCIES lease an additional 17,000 49th and West 50th streets. resented in-house. CBRE multitasking at this all-in- REAL ESTATE square feet of the 59-story JLL represented the tenant. represented the tenant. one space on the Lower East ■ Be My Guest building on the corner of Newmark Grubb Knight Side that includes a coffee 14 E. 58th St. RETAIL West 42nd Street. Asking Frank represented the ■ Social Finance signed shop, a nail salon and a The company filed for ■ Mark Barak, the restau- rents in the building range landlord, Mitsui Fudosan. a 10-year deal for 13,000 massage parlor. Chapter 11 bankruptcy rateur behind La Pecora from $68 to $90 per square The asking rent was $110 square feet at 860 Washing- March 22. The filing Bianca, signed a 10-year foot. Savills Studley repre- per square foot. ton St. The online lender ■ Little Myanmar Mini Mart cites estimated assets of lease for 5,021 square feet at sented the tenant. Cushman plans to occupy the entire 37-50 74th St., Queens $500,001 to $1 million and 944 Second Ave. He plans & Wakefield represented the ■ Ricoh USA inked a 10- second floor of the 10-story This new hole-in-the-wall liabilities of $1,000,001 to open another location landlord, L&B Realty. year lease for 30,469 square building. The asking rent market in Jackson Heights to $10 million. The filing of the Italian eatery in feet at 711 Third Ave. The was $155 per square foot. is one of the few places included no creditors with Midtown East, where the ■ Berenberg Capital digital business and print- Avison Young represented in the city that sells many unsecured claims. restaurant will occupy 2,918 Markets signed a 10-year ing-services firm plans to the tenant. Cushman & of the ingredients com- square feet on the ground relocation lease for 31,700 occupy 20,862 square feet on Wakefield represented the monly used in cooking in ■ BCH Capital floor and 2,103 square square feet at 1251 Sixth the 20-story building’s sec- landlords, Property Group Myanmar. All of the shop’s 1965 54th St., Brooklyn feet on the lower level. Avenue. The subsidiary of ond floor and another 9,607 Partners and Romanoff grocery goods and snacks, The company filed for Newmark Grubb Knight Germany’s oldest private square feet on the 18th floor. Equities. ■ such as tamarind candies Chapter 11 bankruptcy Frank Retail represented the and fried fish sauce, are March 15. The filing cites landlord, 950 Second Ave. imported from the country. estimated assets and liabil- Investors. Branded Concept ities of $1,000,001 to $10 Development represented ■ Majorelle million. The creditors with the tenant. The asking rent DEALS ROUNDUP 28 E. 63rd St. the largest unsecured claims for the deal was $245 per TRANSACTION SIZE BUYERS/ The latest fine-dining spot are The Besen Group, owed square foot on the ground TARGET/SELLERS [IN MILLIONS] INVESTORS TRANSACTION TYPE at The Lowell Hotel in $15,000; GC Realty Advi- floor and $45 per square Midtown offers French, sors, owed $10,000; and foot on the lower level. Convatec Group Plc/Avista Capital $1,267 Novo A/S (20.22%) FB M&A Holdings LP (Manhattan); Mediterranean and Goldberg & Rimberg PLLC, Nordic Capital Moroccan cuisine. owed $6,300. ■ Dermalogica signed a five-year lease for 3,200 Stonegate Bank/FSI Group LLC $779.7 Centennial Bank (Conway, Ark.) SB M&A (Manhattan) ■ Monroe ■ Warehouse 11 square feet at 499 Sev- 49 Monroe St. 38-62 11th St., enth Ave. The skin care Exar Corp./Alonim Investments $738.6 MaxLinear Inc. SB M&A Long Island City Inc.; American Century Investment Plants fill every corner at company will move into the Management Inc.; BlackRock Inc. this Mediterranean eatery The company filed for sixth floor of the 25-story (Manhattan); Renaissance Technologies on the Lower East Side. Chapter 11 bankruptcy building. Savitt Partners Corp. (Manhattan); Simcoe Capital Management LLC (Manhattan); Simcoe The restaurant by Coleman March 16. The filing cites represented the landlords, Management Co. LLC Oval Skatepark is housed estimated assets and liabil- 499 Fashion Tower and in what used to be a glass ities of $1,000,001 to $10 Block Buildings. Adams & SeaWorld Entertainment Inc./ $448.6 Sun Wise (U.K.) Co. Ltd. SB M&A The Blackstone Group LP (Manhattan) (22.85%) factory and has French and million. The creditors with Co. represented the tenant. Spanish dishes. the largest unsecured claims The asking rent for the deal OM Asset Management plc/ $271 HNA Capital (U.S.) Holding LLC SB M&A are the state Department of was $55 per square foot. Old Mutual Global Investors (Manhattan) (15%) ■ Pâtisserie Chanson Taxation and Finance, owed WWP Holdings LLC (Manhattan)/ $269 New York REIT Inc. SB M&A 20 W. 23rd St. $25,015; Con Edison, owed ■ Blue Dog Café signed a WWP Sponsor LLC (remaining 51.1%) This pastry shop and café in $6,740; and the state Water two-year lease for 2,500 OM Asset Management plc/ $174.6 HNA Capital (U.S.) Holding LLC SB M&A the Flatiron District plans Board, owed $442. square feet at 112 E. 23rd Old Mutual Global Investors (Manhattan) (9.95%) to turn its subterranean St. The café plans to open SmartSky Networks LLC $170 Meritage Funds; Platform GCI space into a bar that offers its fifth Manhattan location Partners LLC; Tiger Infrastructure a multicourse tasting menu STOCK TRANSACTIONS in the ground-floor space Partners LP (Manhattan); called The Art of Dessert. of the 5-story building WP Global Partners Inc. ■ Bristol-Myers between Park Avenue South SSN Logistics Private Ltd. $100.2 The Carlyle Group LP; Tiger GCI Squibb Co. (BMY-N) and Lexington Avenue. Global Management LLC MOVES AND EXPANSIONS Louis S. Schmukler, pres- Capital Real Estate Advisors (Manhattan) ident of global manufac- represented the landlord, Decisely Insurance Services Inc. $60 Edgewood Partners Insurance GCI ■ Goa Taco turing and supply, sold Christos Realty. Kassin Center Inc.; Two Sigma Investments LP (Manhattan) 101 MacDougal St. 20,000 shares of common Sabbagh Realty represented There are no tortillas to be stock at prices ranging from the tenant. The asking rent Gold Star Foods Inc. $40 Castle Harlan Inc. (Manhattan) GCI found at the Lower East $56.49 to $56.75 per share was $96 per square foot. Cava Group Inc. $34.9 Revolution Growth; SWaN & GCI Side–based taco joint that’s from March 14 to March Legend Venture Partners; opening a second spot, in 17 in transactions worth ■ LoveThyBeast inked a 10- The Invus Group LLC (Manhattan) Greenwich Village. The tacos $1,133,690. He now holds year lease for 450 square feet West LLC (Manhattan) $28 Dolphin Digital Media Inc. SB M&A here are wrapped in a multi­ 21,483 shares. at 300 E. Fifth St. The bou- layered Indian flat bread tique pet store with shops in Selected deals announced for the week ending March 31 involving companies in metro New called paratha and can be ■ Steven Madden Ltd. Brooklyn plans to open its York. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing filled with tofu or meat. (SHOO-O) first Manhattan retail store shares of a company without the participation of a financial buyer. FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing shares of a company with the Karla Frieders, chief on the ground floor of the participation of a financial buyer. GCI: Growth capital investment represents new money ■ Blue Bottle Coffee invested in a company for a minority stake. merchandising officer, sold 5-story building. The asking SOURCE: CAPITALIQ 71 Clinton St. 10,600 shares of common rent was $125 per square The Oakland, Calif.–based stock for $37.59 per share foot. Eastern Consolidated coffee giant debuted its March 17 in a transaction represented the tenant. GET YOUR NEWS ON THE RECORD 10th shop in the city, on the worth $389,454. She now Compass represented the To submit* company openings, moves or real estate deals, or to receive further information, Lower East Side. holds 68,669 shares. landlords, Mechele Flaum ABOUTemail [email protected] SECTION. and Sander Flaum. For the Record is a listing to help businesspeople in New York find opportunities, potential ■ By Chloe ■ Viacom Inc. (VIA-O) new clients and updates on customers. Bankruptcy filings from the eastern and southern 171 North 3rd St. Dede Lea, executive vice COMMERCIAL districts of New York are listed alphabetically. Stock transactions are insider transactions at The vegan chain that serves president, sold 4,000 shares ■ W.W. Norton & Co. New York companies obtained from Thomson Reuters and listed by size. Real estate listings veggie burgers, salads and of common stock for signed a renewal and are in order of square footage. plant-based brunch options $43.63 per share March 17 expansion lease for 95,000

26 | CRAIN’S NEW YORK BUSINESS | April 10, 2017

P026_CN_20170410.indd 26 4/7/2017 4:02:35 PM PHOTO FINISH

Aces of clubs ow do you give your mind a rest? Joe Franchi and Mike Mercer (le ) like to spend their lunch hour in Bryant Park juggling instead of grabbing a bite. For Mercer, who works as a so ware developer, Hand Franchi, a product manager, picking up the colorful clubs provides some exercise and a creative break. “Juggling is a fantastic physical activity because it’s aerobic, it improves concentration and it helps you relax,” Mercer said.  e pair are part of a group created in 2009 that meets every day to o er lessons to novice jugglers. Founded by Alex Dyer, who was approached by the Bryant Park Corp. to run free work- shops a er he was spotted drawing crowds of curious onlookers with his feats of dexterity, the group teams with international jugglers and wows tourists, who sometimes mistake them for circus performers putting on an organized show. “I tell them ‘No, I’m an IT guy,’” Mercer said. “‘I work down the block.’ ” — PETER D’AMATO BUCK ENNIS

APRIL 10, 2017 | CRAIN’S NEW YORK BUSINESS | 27

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