Upstart Roils Stuy Town Battle a Punch Line G GAEL GREENE Explores Contested Coney Island Clams P
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20100816-NEWS--0001-NAT-CCI-CN_-- 8/13/2010 8:05 PM Page 1 INSIDE A CALL FOR TOP STORIES ‘BACK TO Oil heiress saves BASICS’ Big Apple Greeter UNIONISM Michael Goodwin from untimely end ® President, OPEIU PAGE 2 PAGE 11 Legal eagles flee big law firm coops VOL. XXVI, NO. 33 WWW.CRAINSNEWYORK.COM AUGUST 16-22, 2010 PRICE: $3.00 PAGE 2 Nervous retailers begging for PUBLISHING a jegging craze PAGE 3 Art-full attempt SPINE- to lift downtown is foundering PAGE 3 TINGLER After 9-year race, a winner crosses e-books’ surge devours Aqueduct finish line industry’s ecosystem THE INSIDER, PAGE 8 BY MATTHEW FLAMM in her new role heading an e-book startup, Jane Fried- man still has the corner office. But it’s nothing like the one she had during her decade as chief executive of HarperCollins Publishers Worldwide. In place of orchids and sleek modern furni- ture, there are bare walls and an unpainted ce- ment floor in a prewar building on Varick Street. Family photos are stuck to a bulletin board.And the conference table and chairs where Ms. Friedman sits for an interview could have been quickhoney lifted from an American Legion hall. Two years after losing her old job following BUSINESS LIVES a dustup with her boss Rupert Murdoch, the 64-year-old Ms.Friedman has reinvented herself as co- GOTHAM GIGS founder of Open Road Integrated Media. She launched the digi- Carousel operator tal-only publishing and marketing venture last October in response to enjoys the ride P. 21 the revolutionary changes taking place across the book industry. See CATAPULTING on Page 20 G ANNE FISHER on how small firms can get fast cash for invoices P. 21 G MOVERS & SHAKERS Caroline Hirsch packs A hotly P. 22 Upstart roils Stuy Town battle a punch line G GAEL GREENE explores contested Coney Island clams P. 23 little as $45 million in a foreclosure that his hedge fund, Pershing Fledgling duo may auction. Incredible as such a sce- Square Capital Management, had get complex for as nario may seem, real estate experts been tapped by Winthrop Realty AG race— say that it—or something like it— Trust,one of Stuy Town’s creditors, INDEX little as $45 million could well come to pass. to help it take control of the 80- “I don’t know if Ackman will acre complex. Acting in concert, who knew? IN THE MARKETS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _4 in foreclosure wrest control, but he has unleashed the duo quietly paid $45 million— NEW YORK, NEW YORK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _6 the genie,” says Mark Edelstein, 15 cents on the dollar—to scoop up Five candidates vie NEIGHBORHOOD JOURNAL BY AMANDA FUNG _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _7 chair of real estate finance and dis- a $300 million mezzanine loan, a to be noticed by SMALL BUSINESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 tressed real estate practices at law key slice of the complex’s debt that if all goes according to plan, firm Morrison Foerster. “It will stands between the owner’s equity REAL ESTATE DEALS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 Democratic voters next Thursday a new partnership likely set off another wave of legal and the first mortgage. NY AREA’S TOP AIRLINES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _14 led by hedge fund honcho William skirmishes and encourage potential Mr. Ackman also scheduled an CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _16 Ackman will buy Manhattan’s buyers to come out of the wood- auction for Aug. 25, when he plans BY ERIK ENGQUIST EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _21 largest housing complex—the work.” to foreclose on the property and THE WEEK AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _23 110-building Stuyvesant Town/ In a surprising development, take control of Stuy Town. If he when quinnipiac pollsters asked Peter Cooper Village—paying as Mr. Ackman announced last week See UPSTART on Page 19 Democratic voters across the state if they had chosen an attorney gen- eral candidate,81% said no and 9% 33 5 said yes—and named someone not EYE OF THE BEHOLDER in the race. Only 3% named one of The expansion of a wastewater treatment plant in the five candidates who are actual- Greenpoint turns a potential eyesore into an icon. ly running. To say the contest is flying un- Hollywood takes notice. PAGES 12-13 der the public’s radar would be an NEWSPAPER See VYING on Page 19 71486 01068 0 20100816-NEWS--0002,0003-NAT-CCI-CN_-- 8/13/2010 8:06 PM Page 1 The campaign netted nearly IN BRIEF $100,000, including $35,000 from the Nonprofit greeted city and many smaller donations from in- THE UNITED NATIONS ASSOCIATION OF THE dividuals giving as little as $5 to $2,500. UNITED STATES OF AMERICA, WHOSE MISSION But that wasn’t enough to keep Big Apple is to foster American support for the U.N., has Greeter afloat. run out of money. Last week, the association’s by Getty surprise Enter Ms. Getty,one of five children of 40-member board of directors voted J. Paul Getty Jr. She runs Fuserna Founda- unanimously to end its existence as an tion, which, according to its website, sup- independent organization and to form a ports charities that have financial con- strategic alliance with the United Nations Donation keeps Big Apple Greeter alive straints and lack exposure—an eclectic Foundation, launched a dozen years ago with a group including the Sierra Leone War $1 billion pledge from Ted Turner. UNA-USA ed this money,” says Lynn Brooks, founder Trust for Children and the Santa Monica plans to retain its nonprofit status, but it will be BY LISA FICKENSCHER of Big Apple Greeter,adding that her board Mountains & Seashore Foundation. folded into the foundation. It will align itself of directors had instructed her to start shut- Ms. Getty could not be reached for with the foundation’s sister organization, the dire pleas for donations from worthy ting down operations by September. comment. Better World Campaign, whose mission is also organizations are so common these days, The 18-year-old organization offers to strengthen U.S.-U.N. ties. Ed Elmendorf, they sound like background noise. So it’s unique tours of the city, taking visitors on More funds needed the association’s president and chief executive, remarkable when one succeeds in attract- hours-long trips to neighborhoods off the others clearly share Ms. Getty’s ad- says a new incarnation of UNA-USA would ing a large donor. beaten path. But when corporate donors miration for Big Apple Greeter. A Cana- make use of the U.N. Foundation’s fundraising That’s exactly what happened to Big scaled back last year,Big Apple Greeter hit dian couple, Frank and Margy Slater, who muscle and brand name. Meanwhile, the Apple Greeter, the tiny nonprofit that a wall and had to cut its operating costs to visited the city in July and toured the association can offer the foundation its 12,000 matches tourists with volunteer guides. It the bone. In June, the group launched a Brooklyn Bridge and lower Manhattan members and various chapters that dot the was on the brink of extinction when a Save Big Apple Greeter campaign,appeal- with two volunteers, gave $50 and say they country. wealthy Californian picked up the phone ing to its 300 volunteers, past and future will give the organization a second dona- to offer help after watching a TV news seg- visitors, and corporate sponsors to help. tion next year if it’s needed. TOURISTS CAN’T GET ENOUGH OF THE BIG ment about the group’s financial woes (first But it will take another large gift like APPLE. PRELIMINARY DATA SHOW THAT 23.5 reported in Crain’s on June 21). Ms.Getty’s to save Big Apple Greeter once million visitors came to New York in the first GIFT KEEPS GIVING: A and for all. With corporate supporters still Getty gives $200,000 donation half of this year, an 8.7% increase over the same from Ariadne Getty struggling, reaching the group’s period last year.The city’s tourism bureau, oil heiress Ariadne Getty recently enabled Lynn $600,000 annual budget is no NYC & Co., forecasts that New York will host wired the nonprofit a check for Brooks (right) slam dunk.