CRAINSNEW YORK BUSINESS
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CAR DEALERS IN A JAM To boost sales, dealerships are selling to leasing brokers—the very people turning their business upside down PAGE 22
VOL. XXXIV, NO. 17 WWW.CRAINSNEWYORK.COM BILLIONAIRE’S SCOUTING THE LIST THE NFL’S TOP COMMERCIAL ARTFUL (BUSINESS) PROPERTY TAX DODGE PROSPECTS OWNERS P. 6 P. 13 P. 16
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ON THE COVER
PHOTO: BUCK ENNIS
FROM THE NEWSROOM | CAROLINE LEWIS | HEALTH CARE REPORTER Planting its ag
FIFTH AVENUE features brands including high- end Saks and the ubiq- uitous H&M—and now MedMen, a marijuana dispensary. A medical- marijuana card and a doctor’s note are needed to buy the shop’s prod- ucts, but the company and elected o cials at its packed opening par- ty were con dent that will change. “ is store represents the future,” P. said Adam Bierman, co-founder and CEO of MedMen, which sells 15 cannabis for nonmedical use in California and Nevada. With sanitized o erings such as tinctures, vape pens and gel caps— IN THIS ISSUE and no smokable bud—the shop reects other medical-marijuana UP FRONT 28 GOTHAM GIGS dispensaries in New York. But Bierman’s willingness to talk about full Moscot’s chief design of cer keeps the old-school brand hip legalization is a sign of the times. Gov. Andrew Cuomo in January 3 EDITORIAL said he would study taking that step and this month called doing so Working Families Party gets a inevitable—aer Democratic challenger Cynthia Nixon endorsed it. lesson in politics Nixon and other legalization activists here cite racial justice as 4 IN CASE YOU MISSED IT their top motivation. Yet New York’s cannabis executives have said The Fed looks to cut back on bank regulation little about the e ect unequal enforcement of marijuana laws has had on communities of color. MedMen is not shying away. “When we re- 5 CITYSCAPE Ad space gives cabs leg up on invest, it’s going to be in the communities hardest hit, the educational Uber; after-hours blues systems and schools in those communities,” Bierman told me. 6 REAL ESTATE Last month the company sponsored events in California during Billionaire’s artful tax dodge which attendees could speak to legal professionals about clearing 8 WHO OWNS THE BLOCK marijuana convictions from their records. East Village luxury buildings Coming from California, which legalized cannabis for adults in underscore big changes P. January, MedMen has an edge in answering questions about the 28 10 ASKED & ANSWERED future of the industry. But it’s time for current and aspiring local Carmine’s CEO on keeping 29 SNAPS cannabis entrepreneurs to think about what their role will be. portions big and rent small Photos from the city’s biggest fundraisers and charity events 11 HEALTH CARE Startup Cityblock lands its 30 FOR THE RECORD rst big client Our tally of the week’s buys, busts and breakthroughs 13 SPORTS HEALTH CARE SUMMIT Forget the draft—what are 31 PHOTO FINISH MAY 2 the NFL’s prospects? Think spring weather has been nasty? Its allergies are even INVESTING IN 14 VIEWPOINTS worse DIGITAL HEALTH INNOVATION The next election could Crain’s health care summit will upend the rental market; don’t highlight the cutting-edge trends ground helicopters; wage woes CORRECTIONS in digital health and provide a 16 THE LIST Edie Parker’s agship store, not the entire meeting ground for investors company, beat sales projections by 60% in its SUNDEEP Manhattan’s top commercial and startups in this increasingly property owners rst year. That fact was misstated in “Clutch BHAN, important sector of the pitcher,” published April 9. co-founder “If rules change costs restaurants, so be and CEO, region’s economy. Prognos FEATURES it,” published April 16, overstated the number SHERATON NEW YORK of servers surveyed by the Restaurant TIMES SQUARE 22 CAR DEALER CRACK-UP? Opportunities Center and the gap between 8 a.m. to noon Low-overhead auto brokers harassment in states with and without a [email protected] are changing the sales game tipped minimum wage.
Vol. XXXIV, No. 17, April 23, 2018—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of Jan. 1, June 25, July 9, July 23, Aug. 6, Aug. 20 and Dec. 24, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire
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AGENDAUnion slight offers Working Families a lesson in politics
he Working Families Party said it is shocked (shocked!) that Gov. Andrew Cuomo persuaded unions to stop funding the le -wing group a er it endorsed his Democratic primary chal- lenger, Cynthia Nixon. Please, spare us the outrage. No one, Tleast of all a political party, should be surprised that politics is a transac- tional enterprise when it comes to candidates and unions, or that politicians and labor organizations act in their own interests. e context: A number of unions and activists founded the Working Families Party in New York in 1998 because their interests overlapped and each side stood to help the other. Labor provided funding and members, TIT FOR TAT: Cuomo’s close working relationship with labor leaders, including while the die-hards contributed grassroots organizing and ideological Gary LaBarbera of the Building and Construction Trades Council, has been good for union members (and the governor) but not the general public. cover. e WFP pulled Democratic o cials to the le —and some Republi- cans too. In the early 2000s GOP state Sen. Nicholas Spano provided crucial support for a minimum-wage hike; the WFP reciprocated by endorsing him desperately needed subway and commuter-rail maintenance. His alliance in heavily Democratic Yonkers. Spano got 1,800 votes on the WFP ballot with the Building and Construction Trades Council likewise stops the MTA line and won by 18. e party made no apologies. from pushing its contractors to demand an end to trade-union extrava- Likewise, Cuomo has been delivering for the unions. He can hardly be gances that help explain why our transit projects cost several times more blamed for saying they should “lose my than any other city’s. It also limits the construc- number”—as a WFP leader lamented— No one should be surprised that tion of tax-abated, mixed-income apartment if they were to keep nancing the WFP politics is a transactional enterprise, towers in New York City—which Cuomo insists while it endorses Nixon against him. Nor least of all a political party be built by expensive union labor. And devel- should the unions be blamed for ditching opers who pitch projects for state land know to the WFP if they consider Cuomo’s support include unions. more valuable. Unions exist to serve their members, and their alliance with Having been dumped, WFP can now ght for things like mass tran- Cuomo is doing that. sit, aordable housing and better access to union apprenticeships for ere are signi cant downsides for New Yorkers, though. e governor’s its low-income, immigrant constituency without deferring to its former unabashed support for the Transport Workers Union prevents the Met- union funders or the governor. But it should stop whining that they are ropolitan Transportation Authority from negotiating for reasonable work scratching each others’ backs. at is how politics works, as the party rules and wages that would reduce operating costs and free up funds for knows rsthand. — THE EDITORS
FINE PRINT During the course of a year, only about 5% of workers who have a low-wage job move to a better-paying position, according to a study last week by the Federal Reserve Bank of New York. It attributed the stagnancy to the workforce’s lack of education. The most common route to better pay for such workers, the Fed said, is becoming a truck driver.
BY ERIK ENGQUIST STATS 25 WORDS OR LESS GREEN DAY
NEW YORK CITY HAS a small per-capita carbon footprint because of AND THE C I its population density, transit system and walkability. And it’s getting Right now greener. Here's an Earth Day snapshot. “ Reduction in speculators simply greenhouse-gas Increase in solar 15% emissions since 2005 6X capacity since 2013 love oil. That’s TY Residents with Decline in airborne dangerous” organics recycling sulfur dioxide since 3.2M 95% the phaseout of sludgy —Analyst Tamas Varga on the spike in heating oil began crude prices in recent weeks and the Wall Street traders who have placed a Remediated brown eld Electric-vehicle record number of bets that its rise will sites since 2013 charging stations continue 756 500
ISTOCK, AP IMAGES, BUCK ENNIS SOURCE: Mayor’s Of ce
APRIL 23, 2018 | CRAIN’S NEW YORK BUSINESS | 3
P003_CN_20180423.indd 3 4/20/18 8:19 PM IN CASE YOU MISSED IT CRAINSNEW YORK BUSINESS president K.C. Crain senior executive vice president Chris Crain group publisher Mary Kramer
EDITORIAL Trump offers banks flexibility, managing editor Brendan O’Connor assistant managing editors Erik Engquist, or is it ‘regulation deflation’? Jeanhee Kim, Robin D. Schatz copy desk chief Telisha Bryan ETWEEN SYRIA, ROBERT MUELLER and Michael art director Carolyn McClain photographer Buck Ennis Cohen, maybe the last thing the Trump administration digital editor Gabriella Iannetta needs is a repeat of the 2008 nancial crisis. Yet the senior reporters Joe Anuta, Aaron Elstein, B Matthew Flamm, Daniel Geiger White House seems intent on lowering the barriers raised to reporters Will Bredderman, prevent one. e latest: It aims to slash the amount of capi- Jonathan LaMantia, Caroline Lewis tal that Citigroup, JPMorgan Chase and other too-big-to-fail data reporter Gerald Schifman web producer Chris Kobiella banks must set aside to cushion against potential losses. columnist Greg David Instead of having to hold a type of capital equal to 6% of contributors Tom Acitelli, Yoona Ha, THE FED has proposed loosening big banks’ capital Cara Eisenpress, Miriam Kreinin Souccar their assets, big banks could keep just 3% plus a supplement requirements. to contact the newsroom: that would vary by institution, the Federal Reserve has pro- www.crainsnewyork.com/staff posed. e Fed says the rule would “tailor the leverage ratio requirements to the business activities and risk pro les 212.210.0100 of the largest domestic rms.” Veteran banking analyst Glenn Schorr of Evercore/ISI described it less charitably as 685 Third Ave., New York, NY 10017-4024 “regulation de ation.” ADVERTISING www.crainsnewyork.com/advertise Every dollar held in reserve by banks is one they can’t lend or use in a trade, so it’s no surprise they want rules on advertising director Irene Bar-Am, capital levels eased. e thing is, during a growth period—like now—is exactly when banks should be squirreling 212.210.0133, [email protected] senior account managers away cash to prepare for unpredictable yet inevitable downturns. Lauren Black, Zita Doktor, Rob Pierce, JPMorgan reported $24 billion in pro ts last year, the most of any Fortune 500 company except Apple, and its Stuart Smilowitz rst-quarter earnings rose by 35%. Bank pro ts also got an approximately $3 billion boost just in the rst quarter senior marketing coordinator Charles Fontanilla, 212.210.0145 from the lower corporate tax rate. Banks argue that regulatory burdens hinder them from lending more to com- [email protected] panies and consumers, but the numbers tell a dierent story: e industry has a near-record $9.7 trillion worth of sales coordinator Devin Arroyo, 212.210.0701, [email protected] loans outstanding, according to FDIC data. CUSTOM CONTENT In the meantime, bad habits from the industry’s last march to meltdown are starting to show up again. So-called director of custom content covenant-light loans account for a record 80% of the leveraged corporate-loan market, according to a report last Patty Oppenheimer, 212.210.0711, week from Moody’s. Covenant-light loans, which give troubled borrowers more tools to fend o creditors, helped [email protected] custom project manager Danielle Brody, in ate the credit bubble that burst so painfully a decade ago. — AARON ELSTEIN [email protected] EVENTS www.crainsnewyork.com/events director of conferences & events DATA POINT Courtney Williams, 212.210.0257, Weinstein effect and meddle of honor Market strategy THE NUMBER OF NEW YORK CITY [email protected] e New York Times and e New e stare-down between Charging Bull manager of conferences & events Yorker won the Pulitzer Prize for public HOUSING AUTHORITY BUILDINGS and Fearless Girl will end this year Adrienne Yee, [email protected] events coordinator Ashlee Schuppius, service for their reporting on the Har- WITH RAT-FRIENDLY DIRT CELLARS when the city, which cited pedestrian vey Weinstein scandal. e Times and safety, moves the statue to face the New [email protected] e Washington Post nabbed a national IS 42. THE CITY PLANS TO REPLACE York Stock Exchange. e city may AUDIENCE DEVELOPMENT reporting prize for their work on Rus- THE BURROW-RIDDEN FLOORS WITH reunite the two works there. group director, audience development sian involvement in the 2016 election. Jennifer Mosley, [email protected] CONCRETE THIS YEAR AND NEXT. Silver still golden at Disney REPRINTS Stain removal Nate Silver’s Five irtyEight website reprint account executive Lauren Melesio, e Public Design Commission voted is staying with e Walt Disney Co. 212.210.0707 to remove the statue of 19th-century the most nationally last year. West- but moving from ESPN to ABC News PRODUCTION gynecologist J. Marion Sims from Cen- chester County, Dallas and Detroit fol- ahead of the midterm elections. ESPN production and pre-press director tral Park a er more than 80 years. e low on the list. snapped up the site from e New York Simone Pryce media services manager Nicole Spell statue of Sims—who experimented on Times in 2013. — CHRIS KOBIELLA slaves—was trucked to Green-Wood Add another setback SUBSCRIPTION CUSTOMER SERVICE cemetery in Brooklyn, where he is bur- Gov. Andrew Cuomo earned nothing www.crainsnewyork.com/subscribe [email protected] ied. Locals are ghting the move. last year from his 2014 book All ings 877.824.9379 (in the U.S. and Canada). Possible: Setbacks and Success in Politics $3.00 a copy for the print edition; or $99.95 Lion to the Fed and Life, his tax return showed. He got one year, $179.95 two years, for print Columbia University economist Rich- $218,000 in 2016 from the publisher, subscriptions with digital access. ard Clarida was nominated by President which lost nearly its entire investment. Entire contents ©copyright 2018 Donald Trump to be vice chairman of Crain Communications Inc. All rights the Federal Reserve board. Clarida Midtown moon landing reserved. ©CityBusiness is a registered must be con rmed by the Senate. In August the MTV Video Music trademark of MCP Inc., used under license Awards returns to Radio City Music agreement. Ink spot Hall, where it debuted in 1984. e CRAIN COMMUNICATIONS INC e popular Rivington Tattoo parlor VMAs were last held at Radio City in A Star-Spangled career chairman Keith E. Crain on the Lower East Side this month is 2009 and last in New York in 2015, at Bronx-born John Amirante, the vice chairman Mary Kay Crain opening a location in a Saks Fi h Ave- Madison Square Garden. longtime singer of the national president K.C. Crain anthem for the New York Rangers, senior executive vice president Chris Crain nue window at Brook eld Place, across secretary Lexie Crain Armstrong The thrill is gone died April 17 at 83. He began from the World Trade Center. Riving- editor-in-chief emeritus Rance Crain ton is known for inking musicians, Another city music venue is biting the performing the anthem at Madison chief nancial of cer Robert Recchia Square Garden in 1980 until retir- athletes and Fortune 500 titans. dust. e 18-year-old B.B. King Blues founder G.D. Crain Jr. [1885-1973] Club & Grill in Times Square, citing ing in 2015. He returned to sing chairman Mrs. G.D. Crain Jr. [1911-1996] Tipping points escalating rent, is holding its nal show at MSG this year for the ceremony Ride-hailing service Ly said New April 29, featuring legendary blues gui- retiring Jean Ratelle’s number.
BlLOOMBERG NEWS, NEWSCOM York City residents tipped its drivers tarist Buddy Guy.
4 | CRAIN’S NEW YORK BUSINESS | APRIL 23, 2018
P004_CN_20180423.indd 4 4/20/18 7:53 PM CITYSCAPE
What it takes to MOBILE MARKETING: New digital IPO in NYC billboards will be on 300 yellow cabs Crain’s: How would you describe the by the summer. current scene for emerging companies in New York City? Darrin Stollow: It’s bustling, like the city itself. Fintech helped launch New York’s emerging growth sector a while back. Beyond fintech, New York has movement underway in life sciences, including the medical device and biotechnology subsectors. A report from the New York state comptroller shows New York had the nation’s third-largest tech sector in 2016, with employment increasing 57% from 2010 to 2016. Another indica- tor is Deloitte’s Fast 500 program, which annually ranks the 500 fastest-growing technology compa- nies in North America. In 2017, 79 of the 500 were from Tri-State–a close second to Silicon Valley and well ahead of all other regions. Not that this is a scientific view as the Fast 500 depends on com- Taxis’ ad deal is one edge panies being nominated, but it still may suggest they have on Uber where Tri-State stands against other regions. Crain’s: What is your take on the Cabbies hail digital makeover of rooftop marketing BY MATTHEW FLAMM current state of the market, and how does that impact IPOs? Darrin Stollow: A Deloitte survey of nearly or the city’s yellow cabs, there is still some for static ads. e new system, which can tailor ads to 3,000 private company executives found that value in being iconic—or at least in driving a cab’s location, runs video and cycles through adver- one-third view timing the market as their biggest past millions of eyeballs every day. tisements in 15-second intervals. concern when considering an IPO. However, Despite all the troubles the industry has American Airlines, Air France and fashion design- building the right team and business infrastruc- Fendured since Uber came to town, a trade group for er Zachary Prell are already using space on the net- ture checked in as a close second. The mood of some of the biggest eet owners has struck a taxi-top work. Strong expects to have 300 digital screens atop the market matters a lot when taking a company advertising deal that could bring in tens of millions taxis by the summer and eventually “north of 1,000,” public. But the soundness of a company’s pro- of dollars. according to company President John Schweikert. cesses can also impact the price that’s achieved e agreement, with Atlanta-based Strong Digital “Advertisers de nitely see a great opportunity with at the closing bell. Media, is for 3,500 taxi tops. Negotiating with the Met- cabs,” he said. “ ey’re the only mobile advertising at ropolitan Taxicab Board of Trade, which represents scale in New York City.” Crain’s: So what specific factors should 5,500 of the city’s 13,587 yellow cabs (about 9,000 of Strong pays cab owners rent on all the taxi tops a company’s leadership and board consider which have roof ads), Strong outbid the taxi tops’ pre- but pays more for the digital screens. It gives owners a when planning an IPO? vious advertising operator, Curb Mobility. portion of the ad revenue. Darrin Stollow: Having the right IT and Curb, formerly part of Verifone, became its own A spokeswoman for the Metropolitan Taxicab internal controls to support financial reporting company in December and continues to sell ads Board of Trade said there is an opportunity for rev- is fundamental. Another crucial area is having across the rest of the taxi-top market. enue in the millions of dollars, with growth potential enough liquidity or financing to weather delays. “into the tens of millions” as digital screens are added If the IPO runway ends up being longer than New technology and more advertisers make use of them. expected, you want to make sure enough cash is e taxi industry has shrunk dramatically during “We are extremely excited that Strong shares our on hand to keep the enterprise operating viably the past four years as app-based for-hire vehicles have passion and con dence in the future of the iconic up through the offering. Disruptions in service and revenue could ding market confidence. ooded the city. But only taxis have roof billboards, yellow taxicab industry through this signi cant in- and in January cabs averaged 283,000 daily trips. at vestment of capital and resources,” Ron Sherman, was down 10% from a year earlier, but it still amounts president of the trade group, said in a statement. Crain’s: Some companies are reluctant to go public because of all of the demands you to high visibility for advertisers in Manhattan’s core, “ is advertising deal is a vast improvement over the just discussed. What do you tell them? where taxis do the lion’s share of their business. traditional taxi-top advertising of the past and will Darrin Stollow: It’s a fair question as public Moreover, technology will make the ads more valu- enable our eets—through guaranteed advertising able. Since signing the contract in February, Strong revenue and key aesthetic improvements to the look companies are held to a high bar when it comes has converted about 150 taxi tops to high-resolution of the vehicle—to better compete in an ever-changing to financial disclosures and regulatory reporting. But generally speaking, as a business evolves, digital screens from the traditional vinyl boards used marketplace.” ■ investors and capital markets demand more information on more areas of the enterprise. Auditors, for their part, are evolving to meet Biz groups slam after-hours bill these demands. New technologies, including artificial intelligence, workflow automation appli- cations such as robotics, and even drones could BUSINESS ORGANIZATIONS are pushing back against of all sizes, and we write to urge you not to pass this change how audits are performed. That can help a bill that would prevent employers from requiring legislation,” the group wrote, listing several scenarios companies do a better job of managing risk and sta to check and answer electronic communications where it could do more harm than good. identifying opportunities. aer work hours. Because it would prohibit requirements that em- Read more at crainsnewyork.com/section/deloitte e measure is based on legislation in France and ployees remain reachable by email or phone aer nor- is designed to allow New Yorkers to unplug once they mal business hours, the groups said, companies might clock out, except in emergencies. not let sta work from home or keep exible hours. Darrin Stollow Managing Partner, However, eight organizations, including four It also protects paid time o , which businesses could East Region, chambers of commerce, the New York Building Con- make unpaid in situations such as snowstorms. e Deloitte Emerging Growth gress and the Real Estate Board of New York, said in letter also argues that it would harm companies’ abili- Company Practice a letter to City Council Speaker Corey Johnson that ty to respond quickly to customer complaints. the bill could have unintended consequences and is City government would be exempt from the legis- another layer of red tape. lation—which the business groups point to as proof An Advertising Supplement to BUCK ENNIS “ is bill would be truly burdensome to businesses that the regulations are too strict. — JOE ANUTA Crain’s New York Business
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Ask_The_Expert_Deloitte_4.indd 1 4/20/18 3:33 PM REAL ESTATE
Developer’s museum off-limits to the public
Sheldon Solow enjoys big tax breaks on his art collection, but taxpayers never get to see it BY JOE ANUTA
ctogenarian Sheldon Solow come under scrutiny for operating problematic operating procedures. the general public to view the art. recently discussed plans more like private collections while still e foundations had few independent “Despite the good work that is being to pass on the family real taking generous tax breaks. board members or executives, were done by many private museums,” Sen. estate business to his son, In 2016, for example, the U.S. Sen- located on the founder’s property and Orrin Hatch said in a statement at the OStefan Soloviev. e empire of the ate Committee on Finance conducted were apt to keep odd hours, require conclusion of the review, “I remain Forbes-ranked billionaire includes his an inquiry into 11 private art muse- advance appointments or close for concerned that this area of our tax code namesake o ce tower, a collection of ums and found that many of them had months at a time, making it di cult for is ripe for exploitation.” rental buildings and one of Manhattan’s largest remaining development sites, in Midtown East. But Solow also appears poised to hand o a much less visible family jewel: a nonpro t art museum that receives federal tax breaks despite never being open. e Solow Art and Architecture Foundation is located on the ground oor of the Solow Building at 9 W. 57th St. and has been registered as a non- pro t with the Internal Revenue Ser- vice since 1991. As of 2015, the small museum boasted an enviable collection of artwork by household names includ- ing Jean-Michel Basquiat, Sandro Bot- A New Medical School ticelli, Henri Matisse, Joan Miró and Vincent van Gogh. Its mission, accord- ing to the most recent public disclosure that included one, is to maintain and display artwork for exhibition to the public. Yet by all accounts, the public is For A New State Of not welcome. Nonpro t museums are a popular way for the wealthy to house their art collections. A foundation’s benefactor can purchase works, donate them to the foundation and then take a fed- eral tax deduction for a portion of the Health Care. value. It’s unclear how much Solow has
Dynamic health care changes require a new approach to medical education. That’s why two powerful forces joined to create the Hackensack Meridian School of Medicine at Seton Hall University. The next generation of physicians will take health care beyond healing to the promising science of prevention. Connecting with people in health, not just illness, inside both hospitals and communities. Our rigorous academic curriculum SOLOW’S art collection has been valued combines traditional science with a focus on the new at more than $200 million. frontiers in medicine – genetics, population health and been able to shave o his bill to Uncle team-based care delivery. We are proud to take this Sam by donating artwork to his foun- dation, but his nonpro t’s collection holistic approach and forge a new path. The future of was valued at more than $200 million health care depends on it. in 2015, up from $96 million in 2003, public records show. LEARN MORE AT SHU.EDU/MEDICINE Out of service HACKENSACK MERIDIAN SCHOOL OF MEDICINE e IRS is willing to forgo the tax AT SETON HALL UNIVERSITY revenue as long as the nonpro t pro- vides a public service in exchange— namely, showing art to the people. But
GETTY IMAGES private museum owners lately have
6 | CRAIN’S NEW YORK BUSINESS | APRIL 23, 2018
P006_P007_CN_20180423.indd 6 4/20/18 7:47 PM MATISSE’S Acrobats is one of several famous works not on display. Solow’s charity issues grants to arts organization does not appear to allow articles in the past organizations most years. Neverthe- the public to visit at all. A woman who decade. Recently less it appears to embody many of the answered the phone this month said the they inspired Ethan worst qualities identi ed in the Senate’s collection is open to scholars who pres- Arnheim, an inter- inquiry. He was listed as ent a speci c research national develop- the sole executive and request. Everyone else, ment adviser based board member in the she said, can view the in Washington, nonpro t’s latest ling. works from the street D.C., to create a e museum is located $80M outside. parody website that ESTIMATED estate tax savings inside the o ce building if Solow’s collection is passed e museum’s non- includes biogra- where his company is down as part of a foundation existent hours have phies, a description headquartered. And the prompted sporadic of the foundation,
frequently asked questions and hours of operation: “Monday, inaccessible. Tuesday, closed. Wednesday, no pub- lic hours. ursday, not open. Friday, same as the rest of the week. Saturday, none. Sunday, absolutely not.” “I created this site out of frustra- tion,” Arnheim said. “If you want to keep an art collection private, that’s ne—you should be able to do any- thing you want. But we as taxpayers are paying for this.” Solow did not respond to a request for comment. A spokeswoman for the A New Medical School state attorney general’s o ce said it regulates donations but not nonpro t status. e IRS, which is ultimately
Despite the good work For A New State Of “that is being done by many private museums, I remain concerned that this area of our Health Care. tax code is ripe for exploitation”
responsible for exempting organiza- Dynamic health care changes require a new approach tions from taxation, said it could not comment on a speci c nonpro t. to medical education. That’s why two powerful forces Family portrait joined to create the Hackensack Meridian School of Beginning in 2012, Soloviev’s name Medicine at Seton Hall University. The next generation began appearing in public disclosure documents as an executive of the foun- of physicians will take health care beyond healing to dation (though he was not listed in the most recent ling, covering 2016). at the promising science of prevention. Connecting with suggests, in addition to taking a larger people in health, not just illness, inside both hospitals role in the family’s real estate business, he might also exert greater control over and communities. Our rigorous academic curriculum the charity’s artwork. But it would trig- ger huge estate taxes if the collection combines traditional science with a focus on the new were privately owned. frontiers in medicine – genetics, population health and Artwork typically is subject to the federal estate tax, which tops out at team-based care delivery. We are proud to take this 40%, in addition to levies on the state level. Judging from the 2015 value of holistic approach and forge a new path. The future of the charity’s collection, that would health care depends on it. mean Solow might need to pay about $80 million to bequeath the works to an heir. But if ownership were by the non- LEARN MORE AT SHU.EDU/MEDICINE pro t, Soloviev could simply assume leadership of the organization without HACKENSACK MERIDIAN SCHOOL OF MEDICINE losing a dime of his inheritance. AT SETON HALL UNIVERSITY “If you are going to take a tax write- o , then make it publicly accessible,” Arnheim said, “especially if you have such great works.” ■
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P006_P007_CN_20180423.indd 7 4/20/18 7:43 PM WHO OWNS THE BLOCK REAL ESTATE
510 E. 14TH ST. East Village development underscores big changes just south of Stuy Town Studios in new luxury developments rent for $3,800-plus a month
BY TOM ACITELLI
252 FIRST AVE. ix years a er Extell Development signed 441 E. 12TH ST. Investment rm Blackstone Group and Ivanhoe Cam- a 99-year, $35 million ground lease for bridge, a subsidiary of a Montreal-based pension fund, A limited liability company that in- a run of East Village storefronts, it has acquired Stuyvesant Town and Peter Cooper Village for cludes investor David Jacobson bought $5.5 billion in December 2015. The acquisition of the begun marketing what will be a trio of this 6-story, 40-unit apartment build- 110-building complex ended a nearly decadelong dra- Sapartment buildings. ing for $5.2 million in 2007. ma that started with a Tishman Speyer–led purchase for e strip on 14th Street between Avenues A and $5.4 billion in 2006. Those buyers eventually lost control B had included a Bargain Bazaar and Ray’s East of the complex amid nancial trouble and the housing Side 99 Cents store, and is owned by the estate of market collapse. CWCapital Asset Management, a senior lender on Tishman’s purchase, took it over. Sol Goldman, once one of the city’s largest private landlords. Across East 14th Street is Stuyvesant Town, the 11,250-unit complex opened in the late 1940s to house middle-class New Yorkers and GIs 438 E. 12TH ST. returning from World War II. Steiner NYC acquired the 500–524 E. 14TH ST. Extell’s rst two buildings—which o cial- old Mary Help of Christians Extell Development Corp., led by presi- ly share the address 510 E. 14th St.—together Church complex for $41 mil- dent and founder Gary Barnett, started lion in late 2012. The 82-unit, have 110 market-rate units with studio rentals at leasing units in the rst two of three 7-story Steiner East Village more than $3,800 a month. Leasing began in ear- residential buildings here last month. condo building opened here The rst two share the address 510 ly March. A Target will open on the ground oor in early 2016, with an indoor E. 14th St. Fifty-two of the 110 units later this year. pool and other amenities. in these connected buildings contain With luxe amenities such as a 19,000-square- outdoor space. The third building, at 524 E. 14th St., will contain 50 af- foot roof-deck with re pits, a lawn for yoga and fordable units and is slated to open by a putting green, the project has been dubbed the next year. EVGB—the East Village’s Greatest Building—by Extell. It joins other upscale projects in the area. In November 2012 developer Doug Steiner bought and demolished the shuttered Mary Help of Christians Church on 605 E. NINTH ST. Avenue A between East 11th and East Gregg Singer bought the former elemen- 12th streets. Originally slated to be re- 801 E. 14TH ST. tary school for $3.2 million in 1998 with built as a rental property that included plans to build a high-rise. Opposition from Con Edison operates aordable units, the development shi - residents and a preservation group—plus a power plant on this ed to condos instead. its landmark status and a deed clause block-long site. restricting it to community use—have sty- Steiner East Village opened in 2016 mied his efforts. Singer estimates the feud with one-bedrooms starting at $1.1 has cost him and his fellow investors some million. As of mid-April, there was a $64 million to date. 3,500-square-foot penthouse in con- tract for $11.3 million. While a bid to landmark the church, which 635 E. 12TH ST. AND 205 AVENUE C the archdiocese shuttered in 2007, failed, the suc- The New York City Housing Authority in 2014 cessful landmarking of the former P.S. 64 on East transferred ownership of two Section 8 hous- Ninth Street has helped block owner Gregg Singer’s ing developments along the corner of East 12th Street and Avenue C to the private entity Tribor- conversion plans for several years. ough Preservation for $92 million. NYCHA owns e latest proposal called for converting the half of Triborough. Private rms L&M Develop- 5-story building into a dormitory, but suspicions ment Partners, BFC Partners and K&R Preser- among some community groups that it would be- vation owned the other half at the time of the transaction and agreed to take over the complex- come a youth hostel scuttled those plans. Singer, es’ management. The Avenue C building has 23 who purchased the property at auction in 1998, stories and 176 units. The East 12th complex is sued opponents in federal court this year, claim- 10 stories and has 93 units. After 30 years, both will pass out of public housing. ing a conspiracy against him by the Greenwich Village Society for Historic Preservation, elected o cials and a hedge fund manager who lives in the area. It stands as an aging relic in a transform-
RENDERING: IF STUDIO, GOOGLE MAPS ing neighborhood. ■
8 | CRAIN’S NEW YORK BUSINESS | APRIL 23, 2018
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CN018551.indd 1 2/15/18 12:13 PM ASKED & ANSWERED RESTAURANTS INTERVIEW BY CARA EISENPRESS
JEFFREY BANK ALICART RESTAURANT GROUP
armine’s in Times Square was the nation’s second- highest-grossing independently owned restaurant last year, raking in $33 million from 1.4 million New York City guests. But unlike Tao Downtown, the restaurant- doesn’t have a Cnightclub that outsold it, Carmine’s is not trendy. It’s a 480-seat, “ family-style Italian eatery with a classic red-sauce menu. business-friendly In the 12 years since Jeffrey Bank has been CEO of parent environment. The company Alicart, he has sold off most of the dozen restaurants in rst week you which Alicart was a partner or investor and instead expanded the open, you get number of Carmine’s and Virgil’s Real Barbecue locations around a violation. That’s the country and in the Caribbean. your welcome”
Carmine’s is 27 years old. What has stayed the same? The menu. We have a philosophy: Chicken parm is chicken parm is chicken parm. You should get this giant, oversize chicken parm smothered with cheese and a wow factor whether you ordered it in the Bahamas, Atlantic City or the Upper West Side.
What about the diners? Customers change, but we hit all the demographics. My mom in her 70s is still a customer. When she was 50, she went because it was the trendy restaurant. Now she’s a customer—well, it’s free—because it still works for her. Millennials going out for their fast-casual and their salad bars—those are not celebratory expe- riences. So they come in since we’re middle-of-the-road pricing, $25 to $35 a head, and you eat like a king.
Are groups a big part of the business? Once you pass six in your group, no one else wants you. For us, when you add a person, the portions are so big, the bill goes down.
How do you stay in Times Square with the cost of commercial leases there? DOSSIER Our stores thrive off volume, so we need an affordable rent plus a big space. We own Virgil’s building. At Carmine’s, we renewed the WHO CEO of Alicart Restaurant lease two years ago for 15 years. We have a low base rent plus Group pay a percentage of sales. That’s our strategy for how we get a triple-A location and afford 14,000 to 28,000 square feet. BORN Massapequa, Long Island
Your new locations are far away. Why expand outside New York City? RESIDES Upper West Side It’s not a business-friendly environment. That’s why we haven’t EDUCATION Bachelor’s in sociology, opened a new store in the city since ’99. When we open a SUNY Albany restaurant, we create 200 new jobs. In D.C. and Vegas, it’s easy TRIMMINGS Alicart sold its interest to work with the government. You create 200 jobs here, you get a in restaurants including Ollie’s, Gabriela’s violation the rst week. That’s your welcome. and Artie’s, which was named in honor of Alicart’s founder, Arthur Cutler, after he How do you feel about the higher minimum wage? died unexpectedly. Artie’s was subsequently closed by its owner last year, and Bank said I worry about the unintended consequences of government he is considering reopening the Jewish deli crushing a model that has been successful. Everyone knows in its original location. “The landlord told someone who has worked in a restaurant. It’s a way to start a us the number and we started laughing. No career and good for artists and actors. Do some get left behind? restaurant can afford that. We’ll wait anoth- Maybe. But the staff here didn’t go to Cornell. The chef at the 44th er year and the rent will come down.” Street Carmine’s was a prep cook. Now he’s in the boardroom. LIKE IT OR NOT Bank doesn’t believe We had “walkers” to take diners to their table. It’s a job you have that Instagram and Facebook accounts for six months. It’s hard to pay $15 an hour for that. We just cut necessarily help his restaurants. He puts that job. his stock in review sites, such as Yelp, TripAdvisor and Google. “When What are you doing to prevent workplace harassment? there’s a big number of positive We have high standards. In case a bad apple sneaks into the reviews, I believe them. I mean, 1,400-member staff, employees can speak to the manager, the how many fake reviews can my
kids put on there?” BUCK ENNIS GM, to the seven people in HR. Does someone come in every now and then who’s not perfect? Yes. We educate people to tell us. If we’re noti ed, we can do something. ■
10 | CRAIN’S NEW YORK BUSINESS | APRIL 23, 2018
P010_CN_20180423.indd 10 4/20/18 11:25 AM HEALTH CARE
Health-tech startup Cityblock ROMM sees the upside to serving lands its first big client low- income patients. Emblem to start working with Brooklyn rm this summer BY JONATHAN LAMANTIA
ityblock, a health- Central Brooklyn is an $10 billion hedge fund, as chronic disease management, its services to providers who tech startup based apt starting point for City- well as Sidewalk Labs, run lead the team. ey interact have so-called value-based in Brooklyn, has at- block and Emblem. e area by Google’s parent company, with patients either in the contracts, for which insurers tracted high-pro le su ers from a shortage of and rive Capital, a New community or in their home. reward them for being more Cinvestors and $23 million in primary-care doctors, with York venture rm founded by “It meets them where they e cient and delivering bet- funding since it was spun out just 55 physicians for every Joshua Kushner. Two inves- are and gives them the sup- ter care. e company has from Alphabet’s Sidewalk 100,000 residents—about half tors know the market particu- port they need,” Karen Ign- sought out collaborations with Labs in October. Last week it as many as the statewide aver- larly well: Andy Slavitt, acting agni, president and CEO of community-based organiza- reached another milestone: age. e result: Brooklynites administrator of the Centers EmblemHealth, said last week. tions with the idea that non- a deal with its rst big client, who depend on Medicaid are for Medicare and Medicaid Cityblock’s tech platform, pro ts could receive payments EmblemHealth, one of the more likely to end up in the Services during the Obama Commons, lets members of from Cityblock if they help city’s largest insurers. emergency room, driving up administration, and his former the care team communicate lower costs for clients. Cityblock uses its platform the costs of the government deputy administrator, Dr. Pat- and monitor a patient’s prog- “Cityblock has built a model to provide medical, behavioral health insurance program. rick Conway. ress. Meanwhile, patients can of care that orients rst toward and social services to Medicare While Gov. Andrew Cuo- use the platform on a smart- low-income populations,” said and Medicaid patients in urban mo has allocated funds to Team approach phone, tablet or computer Iyah Romm, the company’s neighborhoods that sorely lack expand primary care in central Cityblock assigns members to reach out to the team and co-founder and CEO. access to care. e startup will Brooklyn as part of a plan to to teams of doctors, nurses, access telehealth services. e pro t margins in treat- begin working with Emblem consolidate three of the bor- behavioral health clinicians Cityblock is pitching its ing Medicare and Medicaid patients this summer out of the ough’s hospitals, Cityblock and community health work- service to health plans as recipients are slim, but Romm Crown Heights medical prac- o ers a private-sector solution. ers who create an action plan a way to lower the costs of said there is a great chance tice of AdvantageCare Physi- Its investors include Maverick and provide ongoing support. their highest-need members to lower the cost of care. “We cians, an a liate of Emblem Ventures, a San Francisco– e community health work- and attract enrollment by believe there’s a meaningful with 36 o ces in the city and based venture-capital fund ers, who have been trained interacting with patients at opportunity to create value on Long Island. tied to Maverick Capital, the in behavioral coaching and its hubs. It is also marketing here,” he said. ■
APRIL 23, 2018 | CRAIN’S NEW YORK BUSINESS | 11
P011_CN_20180423.indd 11 4/20/18 3:03 PM Does business run in your family?
We are taking nominations from trailblazing, entrepreneurial family-owned businesses for this inaugural awards program.
Finalists will be announced in late May and showcased in a custom section in the June 25 issue of Crain's New York Business. Crain's Custom will host a cocktail awards reception to honor the finalists and announceannoun the winners on June 28.
Requirements: • At least $2 million in revenue per year • At least two family members are employed at the business with the majority of ownership or control belonging to the family • In business for at least 5 years • Headquarters in the New York metro area (includes all 5 boroughs as well as Nassau, Suffolk,Su Westchester and Rockland counties)
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CN018645.indd 1 4/20/18 5:30 PM SPORTS
Forget the draft—what are the NFL’s prospects? With declining ratings and a simmering concussion controversy, the country’s richest sports league faces an uncertain future BY MATTHEW FLAMM
National Football League rite of passage— GIANT PERK: The and likely fodder for a future episode of NFL remains strong HBO’s Ballers—gets underway April 26 as with advertisers. teams start announcing their dra picks Afrom inside AT&T Stadium in Arlington, Texas. e NFL Dra has the potential for plenty of emotion and suspense, but many TV viewers observing the theat- rics are bound to wonder: How many elephants can t in this room? Nothing is what it looks like in the league anymore. And it’s not just because America’s seemingly invin- cible TV ratings champion has su ered two straight years of declines. Or that its critics say it is diluting the quality of its programming with too many tele- vised games. Or that the issues that drove some play- ers to take a pregame knee are far from resolved. What really spoils the party is that it’s getting harder to believe that the athletes selected to play the sport of their dreams as professionals will have a promising future once they hang up their cleats. Which isn’t to say that they should quit now, because they shouldn’t. Even the biggest killjoys in the business, namely the researchers at Boston Uni- versity’s CTE Center, who study the degenerative brain disease known as chronic traumatic enceph- RED FLAG broadcaster can in turn charge distributors higher alopathy, don’t see much harm caused by the three Youth participation in low-contact ag football is up fees for the right to carry local Fox a liates. “Even if seasons of playing time that make up an average NFL by 387,000 in the United States during the past four it’s only 11 million [viewers], there’s nothing else like career. at’s because—small comfort here—most of years. Participation in traditional tackle football is it on television,” he said, “except other football games.” the damage has already been done. down by a lesser degree, with 163,000 fewer American Competing media outlets, however, may not be so CTE risk “is correlated to overall lifetime brain kids playing. generous. ESPN, for instance, is reportedly prepared trauma,” and for most football players, that trauma to do without Monday Night Football when its nearly is “coming before they get to the NFL,” said Chris Participation in football, ages 6-17 (in millions) $2 billion-per-year rights deal runs out in 2021. Nowinski, co-founder of the CTE Center. He approves Tackle Flag “In the old days,” as the network was building an of the new rules on tackling that aim to reduce the 3.0 audience and increasing its subscriber fees, “the NFL risk of head trauma, as well as the league’s emphasis 2.4 had ESPN over a barrel,” said media consultant James on its concussion protocol, but he says there’s no way 2.5 Andrew Miller. Co-author of ose Guys Have All of knowing if those e orts are helping prevent CTE. the Fun: Inside the World of ESPN, he reported last e data Nowinski does have suggest the league 2.0 year that the network had changed the language in its should focus more on athletes’ earliest years. 1.6 contracts with cable distributors so that it’s no longer “ e NFL is making the wrong choice by recruit- required to carry the Monday night package. ing 5-year-olds to tackle football and trying to con- 1.5 Last season ratings for Monday games, which vince moms it’s safe,” he said. “Encouraging putting Miller considers among the worst in the league, were a helmet on a 5-year-old is the worst thing the NFL 1.0 down 17% from 2015. “If I were ESPN, I wouldn’t can do.” 2012 2013 2014 2015 2016 2017 even bid on Monday night,” he said. “I would look He believes that children should play only low- into Sundays or just buy a highlights package.” contact ag football until they get to high school and OVERALL AVERAGE ANNUAL that the NFL should stop confusing parents by pro- % DROP in % INCREASE in TV Headaches ahead moting its Heads Up Tackling training program as a 10 ratings for 7 rights fees paid Even if the NFL continues minting money, pos- safe way for kids to play when research shows that NFL games during the by CBS, Fox and NBC from sibly with the help of rights bids from tech industry it isn’t. 2017 season 2012 to 2022, prior to Fox players such as Facebook and Amazon, changes could An NFL spokesman declined to comment but signing its Thursday Night still be coming to the sport. o ered the following statement: “ e NFL’s No. 1 pri- Football contract “More and more parents are not letting their kids
ority is the health and safety of our players. With our SOURCES: Sports & Fitness Industry Association, Associated Press, play,” said Andrew Zimbalist, a sports economist at partners at the [NFL Players Association], we work to Nielsen Smith College. “And I think the number of kids who ensure players receive unparalleled medical care and go through college programs and try to play in the that our policies and protocols are informed by the NFL will go down. at means the quality of play will most up‐to‐date scienti c and medical consensus.” years’ worth of ursday Night Football, 47% more go down.” on an annual basis than NBC and CBS are currently Zimbalist acknowledged that the drop-o might Must-see TV paying, according to e Wall Street Journal. be imperceptible, and said it’s a good bet that audi- But whatever’s in store for individual players, the Fox is shedding its entertainment assets to focus ences won’t care. NFL is still raking in the bucks. on sports and news, and last season’s 12% ratings So maybe the NFL is invincible. But it still has to Football remains the most-watched programming drop wasn’t a problem. deal with the biggest elephant in the room. on television by a wide margin as well as one of the “ eir play is broadcast television now,” said Pat- “If a signi cantly high percentage of successful few viewing options that is mainly consumed live. rick Crakes, a former head of strategy at Fox Sports players develop CTE and die horrible deaths, it may at makes it appealing to advertisers who are strug- who has his own media consulting rm. “Eleven become di cult for fans to watch,” Nowinski said. gling to reach large audiences at a single shot as the million viewers on a ursday night is a great thing “ e NFL runs the risk of turning everybody o media landscape fragments. It is also why Fox Broad- to have.” Crakes pointed out that the ve-year pack- to football, the same way the country turned away
casting in January agreed to pay $3.3 billion for ve age is about more than attracting advertisers. e from boxing.” ■ GETTY IMAGES
APRIL 23, 2018 | CRAIN’S NEW YORK BUSINESS | 13
P013_CN_20180423.indd 13 4/20/18 3:57 PM VIEWPOINTS
NYC HOUSING UNITS Rent-regulated Owner-occupied
Election could distort 32% already brutal rental market 42% 26% Democrats might make it impossible to deregulate apartments Market-rate rentals
IF A DEMOCRATIC WAVE vacant. His proposals, which could incomes were high enough, but docu- RENTAL UNITS Post-1947 engulfs New York well be enacted if the Democratic take- menting earnings was too onerous for rent-stabilized on Election Day and over occurs, would replace the rent- the provision to be widely used.) At rst Pre-1947 263,621 rent-stabilized washes away Repub- regulation system enacted in the 1990s. the rent threshold was too high to have Rent- controlled 1% 766,296 licans at all levels, the Twice in that decade, Senate Major- much impact. But over time it pushed 27,039 12% cause will be anger ity Leader Joseph Bruno took aim at more and more units out of regulation. at President Donald rent regulation, threatening to let it Despite accepting millions of dol- 35% Trump and his poli- expire—which it would have without lars of campaign contributions from GREG DAVID cies and conduct. e his chamber’s votes—if Democrats the real estate community, Cuomo has 39% rami cations, on the didn’t accept major changes. His aim chipped away at landlords’ ability to 13% other hand, will go far beyond what the was vacancy decontrol: allowing mar- deregulate apartments. Market-rate Other president is doing. ey will include ket rents for units whenever tenants Aer taking oce in 2011, he raised 848,721 regulated sweeping changes to the city’s rent- moved out. Fellow Republican Gov. the threshold rst to $2,500 and then 278,618 regulation system. George Pataki mostly supported the $2,700 and indexed the gure to the Gov. Andrew Cuomo this changes, though he waed on increases set by the city’s Rent Guide- SOURCE: U.S. Census 2014 NYC Housing Survey month embraced the entire how far he was willing to go. lines Board. Other pathways to dereg- agenda of tenant advocates % e result, passed in 1997, ulate units were trimmed. Bruno had to impose it in places with rising rents: for tightening restrictions preserved limits on rent intended to cause the eventual death of “Economists across the ideological on landlords. He endorsed increases and tenants’ rights rent regulation by reducing the num- spectrum have found that rent control 61SHARE of NYC ending vacancy decontrol of with key exceptions. Any ber of apartments so dramatically that protects entrenched tenants but raises apartments—which removes rental units that time an apartment’s regulated political support for it would wane. He prices for future renters.” e other them from rent regulation are regulated rent exceeded $2,000 and the did help unleash billions of dollars of downsides are endless too. when they have rents greater tenant moved out, the apart- investment in aging housing stock, but e question now is, Who will make than $2,733 and become ment could be exempted from only a modest number of units moved the case against rent regulation (besides empty. He wants to end permanent regulation. Landlords could increase to market rate. Today 61% of rental me and the Crain’s editorial board) and rent increases triggered when land- rents by rehabilitating units—a crucial apartments are still regulated. how e ective they will be? ■ lords improve apartments. And he incentive to maintain the quality of the e New York Times captured one would limit the 20% rent increases housing stock. ( ey also were allowed essential truth about rent regulation in GREG DAVID writes a regular column now allowed when apartments become to charge market rents if tenants’ a recent story about e orts in California for CrainsNewYork.com.
Don’t ground the city’s helicopter industry Lawmakers aim to capitalize on New Jersey operator’s tragedy BY SAM GOLDSTEIN
s more information about In fact, the city has a rigorous set of Well-regulated and last month’s fatal helicopter regulations governing helicopter sight- safe helicopter tours crash comes to light, City seeing. Tours are o ered from one des- are an integral part Council members are once ignated Manhattan heliport, and safety of New York City’s Aagain considering legislating an entire is the primary driver. e East River tourism industry. Pro- industry out of existence based on an crash did not involve a city-regulated viding a unique per- old red herring: noise. Con ating our air tour but a doors-o adventure spective for tourists well-regulated air-tour industry with charter originating in New Jersey and to soak in the majesty the “adventure charter” operation that therefore beyond the city’s jurisdiction. of New York, they went down in the East River is a dis- New York’s air-tour industry does safely deliver a bird’s- service to the people of New York. To not operate doors-o ights over land. eye view of our great ensure the proper path to accountabil- In fact, the industry entered into an city to hundreds of ity and prevent such tragedies, it is crit- agreement a few years ago in which the thousands of people ical that we understand the facts. industry rearmed its routes, agreed annually. Investigators are nding out the to stop ying tours on Sundays and New York’s cur- gritty details of the crash, and if the reduced the number of ights per year rent regulations and loss of life was caused by malfeasance, by a staggering 50%. people whose livelihoods depend on the business model they shape are an those bad actors must be held account- e strong working relationship helicopter tours. At the downtown heli- example for others. able. But allowing aviation opponents that exists among New York’s air-tour port alone there are hundreds of jobs: Legislating the local industry out of to capitalize on the catastrophe by operators, city leadership and the Eco- vendors, security, pilots, maintenance, existence would only create new prob- punishing an entire industry would be nomic Development Corp. means New gas teams and more. e majority are lems, cost the city revenue, put people a great mistake—with consequences York is ahead of the curve, prioritizing held by minorities and women. e out of work and deny visitors an oppor- a ecting hundreds of lives. safety while ensuring customers have industry employs and supports hun- tunity to appreciate one of the world’s e bill reintroduced in the City an unforgettable experience. Strict dreds of local families and pays more most iconic skylines. ■ Council purports to address an issue rules and standards result in the most than the tourism sector’s average sal- that simply does not exist. Of roughly community-friendly and accountable ary, all while generating more than Sam Goldstein is the deputy director 300,000 noise complaints called in to ights in the sky and should be held up $50 million for the local economy each of the Helicopter Tourism and Jobs 311 in 2015, only 1,235 were helicopter as an example for regulators and oper- year, which contributes to the funding Council, a trade group composed of complaints. Of those, 158 stemmed ators alike. of schools, hospitals and other critical operators and employees of the city’s
AP PHOTO from air tours. Finally, let’s remember all the public services. air-tour industry.
14 | CRAIN’S NEW YORK BUSINESS | APRIL 23, 2018
P014_P015_CN_20180423.indd 14 4/20/18 11:36 AM Wage hike is tipping point for restaurants Jacking up base pay for servers would sink us BY JULIET MASTERS, MELBA WILSON AND CRIZETTE WOODS
n February many of us were fea- keeps going up. e tip credit has helped businesses. We are already reducing tured in a Crain’s cover story as us open and sustain our restaurants. employee hours and positions to keep female entrepreneurs who were We didn’t start our businesses just our doors open. instrumental in Harlem’s restau- to make a pro t but also to o er great Some people claim the practice of Irant renaissance. e story provided hospitality and food that nourishes our tipping results in harassment of workers concrete examples of the success of the neighbors’ souls. We want to set a pos- by customers and employers. We don’t area’s minority- and women-owned itive example for other women as well agree that eliminating the tip credit will businesses. Unfortunately, that status is as Harlem’s youth so they may see their e ectively address such unacceptable now being threatened. future selves in every meal served. Part behavior. We do, however, believe that Hollywood celebrities are pressur- of our mission is to create job oppor- losing the credit will put our restau- ing Gov. Andrew Cuomo to elimi- tunities for our residents. ey are rants and the jobs of our fellow women nate the tip credit that restaurants can young and old, college-educated and and minorities in jeopardy. apply against the regular minimum GED recipients, immigrants and the Many restaurant and bar owners wage when they pay tipped workers. formerly incarcerated—all of whom would consider banning tipping and As Cuomo holds public hearings on deserve opportunity in their backyard raising menu prices in an attempt to this across the state, he ought to value of Harlem. stay a oat, but that would result in some our voices as well. e credit allows Many of us capitalized on the lower servers earning less than they do now. us to manage costs when our servers commercial rents in Harlem to nd a Rather than take our employees’ and bartenders earn more than the full storefront and bootstrap the rest until more expensive and complicated to gratuities, the governor should accept minimum wage in wages and tips com- we were able to get the cooking gas survive, let alone thrive. a tip from this group of successful bined—as they o en do by large mar- turned on. Unsurprisingly, because of Putting aside those challenges, minority and female business owners gins. If that compensation falls short, our success and other forces, rents have we’re proud that our tipped workers and save the tip credit. ■ we have to make up the di erence so no risen, making it more challenging for earned a living wage before the gov- one is earning a sub–minimum wage. others from the neighborhood to do ernor increased their base wage 100% Juliet Masters opened e Edge Harlem Running a restaurant in New York the same. Once you do get your doors over the past three years. During that in 2014. Melba Wilson opened Melba’s City is beyond expensive. We deplete open, you can embrace the competition same period, he reduced our tip credit in 2005. Crizette Woods is the owner our savings and mortgage our homes in and the day-to-day grind of running a three times. If Cuomo eliminates our of Sylvia’s Restaurant, which opened in hopes of establishing model businesses small business. However, the red tape, tip credit completely, we would need 1962. is op-ed was signed by 17 other in our community. In Harlem, the cost laws and regulations make it much to reevaluate the existence of our female Harlem restaurateurs.
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PREMIER PARK AVENUE PENTHOUSE Duplex Penthouse / Entire 21st & 22nd Floors Totaling 10,707 RSF • Premier Park Avenue building on 59th street • Large wrap-around landscapable terrace • Great light and air with Park Avenue views • Full fl oors with views on all four sides PARK AVENUE PARK PENTHOUSE • Prestigious tenant roster • Owner occupied building • Floors must be leased together ADDITIONALLY: ENTIRE 12TH FLOOR, 13,110 RSF - WILL DIVIDE TARA STACOM, Executive Vice Chairman 212 841 7843, [email protected] DAVID E. GREEN, Executive Director 212 841 7934, [email protected] 505 JUSTIN ROYCE, Executive Director 212 841 7764, [email protected] MICHAEL TRANFALIA, Managing Director 212 841 5981, [email protected] APRIL 23, 2018 | CRAIN’S NEW YORK BUSINESS | 17 P016_P017_CN_20180423.indd 17 4/20/18 2:47 PM HR REDEFINED Human resources pros reinvent their roles in a period of rapid change At a time when the unemployment rate is 4.1% but salary budgets remain tight, many human resources professionals know their organizations must raise their game to attract top talent. According to findings from the new Crain’s HRRe- defined Research Study, 71% of respondents believe the development of non-monetary strategies to re- cruit, retain and engage employees to be one of the highest priorities of HR departments within the next five years. The Crain’s study, conducted by Signet Re- search in February and March 2018, surveyed 200+ HR professionals at both nonprofit and for-profit em- ployers, across the five boroughs. Winning the war for talent was one of many issues to emerge from the study as the most pressing for HR professionals, and further addressed at a panel discussion held by Crain’s Custom Studio at its New York City office on April 10. The panel focused on the findings of the Crain’s HR Redefined Study and other emerging trends in HR. Featured on the panel, were three executives from different industries: From left to right. Moderator: Elaine Pofeldt, Crain’s Custom Editor; Panelists: Edwin Artuz, Senior Vice President, • Cecile Alper-Leroux, vice president of human Head of Corporate Services & Director of Diversity and Inclusion, Federal Home Loan Bank of New York; Cecile capital management (HCM) innovation at Alper-Leroux, VP of Human Capital Management Innovation, Ultimate Software; Meera Oliva, Chief Marketing Officer, Ultimate Software Gradifi • Edwin Artuz, senior vice president, head of corporate services and director of diversity and the panelists noted. “They want to know how they di- don’t want to just get an annual review, they want to inclusion at Federal Home Loan Bank of rectly impact that mission in the work they perform,” know on a regular basis ‘How am I doing?’ and try to New York said Federal Home Loan Bank’s Edwin Artuz. improve on that.” • Meera Oliva, chief marketing officer at Gradifi, a provider of employer-based student loan In this environment, a company’s brand is very im- Adding such programs makes an employer attractive repayment solutions portant, Gradifi’s Meera Oliva said. “People like to not only to millennials but to all generations, she identify these days with where they work,” said Oliva. added. Based on findings from the survey and the panel, here “When thinking about building a pipeline and having are some of the key trends on the minds of HR profes- access to new talent in this tight labor market, how Accountability sionals in the New York City area: you project your company and what it means to work In the midst of the #metoo movement and current there is increasingly important.” cultural conversation on diversity and inclusion, The rise of millennials some in the HR community are raising questions According to the Crain’s study, 57% of respondents At Gradifi, visuals in the office help to do this. For in- about how effective they can be in addressing work- identified mentoring and managing of millennials as stance, the company displays a thermometer show- ers’ concerns regarding the company for which they they enter leadership roles as a high-priority issue, ing how many millions of dollars in student loan debt are being paid to work. making it the number two priority for HR depart- have been paid down since the company started. “We ments within the next five years. try to quantify the results of our mission for them, “I think what the whole #metoo movement has done and that gets people really excited,” said Oliva. is raised to the surface the real challenge and dilem- This requires HR professionals to pay attention to the ma many HR leaders face in their jobs today,” said ways in which millennials’ expectations of the work- Transparency in Career Path Alper-Leroux. “In some cases, they are almost set up place differ from those of older generations. Millennials are drawn to transparency, particular- to fail.” ly in regard to their future career with an employer, When asked to describe millennials, 65% of survey the panelists noted. “They want to know what their Alper-Leroux said one answer may be a system in respondents said millennials wanted a lot of flexibil- career path will be and what is expected in terms which workers have agents, similar to those who rep- ity, 58% said they were impatient to advance in the of growth before they will join an organization; so resent Hollywood actors, to look out for their individ- company but didn’t want “to pay their dues,” 41% de- transparency is critically important in the recruiting ual interests. “We at some point have to rethink the scribed millennials as entitled, 40% said they wanted process,” Alper-Leroux said. role of HR,” she said. a lot of autonomy, and 33% said they were constantly in need of praise or recognition. As noted by panelists and survey respondents, one The coming of Generation Z way to get in front of this transparency trend is to be Looking ahead to the arrival of Generation Z in the “There has been a significant shift, in part because extremely clear about what a company has to offer workplace, HR professionals are seeking an under- of the attitudes and expectations of millennials,” said on the growth-potential front. As one survey respon- standing of this group of workers who were born in Cecile Alper-Leroux of Ultimate Software. “Those dent explained, “One of the reasons that we’re creat- the mid-1990s and beyond. This will be a top organi- expectations have actually carried over to all of the ing career ladders is that career growth is a very big zational priority within the next five years according to 21% of HR professionals surveyed in the Crain’s “T ey [milennials] don’t want to just get an annual HR Redefined study. review, they want to know on a regular basis ‘How am Alper-Leroux noted that many Generations Z’ers ex- perienced the job loss of a parent in the 2008 reces- I doing?’ and tr to improve on that.” sion and tend to be very autonomous, compared to other workers. Meera Oliva, Chief Marketing Officer, Gradifi They have also experienced sweeping demographic workforce, so a lot of what everyone is expecting and thing—especially with millennials. They expect that changes. “They will be the first generation to have no asking for is a more personalized, higher-touch expe- if they come in, do a good job, they’ll be promoted racial or ethnic majority,” Alper-Leroux explained. rience when it comes to understanding what kind of every year.” They are also more comfortable with ethnic and gen- environment they are coming into.” der fluidity than older demographics, she said. “They The presence of career development programs such have grown up taking inclusion much more for grant- Millennials also want a sense of purpose at work, so as a “fast track” initiative can make an organization ed.” That could pave the way to a very different work- it is important to convey the organization’s mission, attractive in this environment, said Oliva. “They place in the future. ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS HRRedefined_4pagespread.indd 1 4/19/2018 12:28:54 PM Why did she borrow $67,928 for tuition? She did it to work for you. Now there’s a job benefi t that helps your employees pay off their student loans. Gradifi is gratitude. Learn more at gradifi .com or call 1-844-GRADIFI HRRedefined_4pagespread.inddCrains 04-23-18 Gradifi-Nadia2.indd 2 1 4/19/20184/18/18 12:28:55 8:58 PM AM Diversity and Inclusion 2018: How employers can make a meaningful di erence Diversity and inclusion are top of mind for many hu- New York. At Federal Home Loan Bank of New York, their organization is “very likely” to do so in the next man resources professionals as stories related to the Artuz explained, there is no separate diversity and fi ve years. #metoo movement, pay equity and the notoriously inclusion training, because it is so much a part of life sexist culture of the tech industry dominate head- at the bank. “We weave it into all of our training,” he “If you are thinking about diversity and inclusion, lines. The Crain’s HR Redefi ned Study found that for said. that’s an angle you should certainly be thinking 47% of respondents, the enforcement of policies and about,” said Oliva. “We talk with a lot of tech com- strategies to advocate diversity and inclusion ranked As the #metoo movement brings the equal treatment panies that say, ‘We don’t have problems retaining as the highest priorities of their companies’ HR de- of women in the workplace forefront and center, pan- talent. People want to work here.’ But their problem partments within the next fi ve years. Among respon- elist Meera Oliva, chief marketing offi cer for Gradifi , is recruiting and retaining diverse talent.” dents, 28% see racial/cultural diversity as their top expects companies to shift the discussion of issues challenge. such as sexual harassment away from compliance Customize it and more toward culture. Leaders will be more like- Tailoring an organization’s approach to diversity and At many companies, HR professionals are aware ly to ask questions about whether, for instance, their inclusion is essential, noted Alper-Leroux. A one- there is much work to be done. As pointed out at a teams know what to do if someone reports sexual size-fi ts-all approach doesn’t work in today’s world panel discussion held by Crain’s Custom Studio at its harassment, she explained. “Those are the conver- of customization, she pointed out. New York City offi ce on April 10, even companies that sations that will start happening on a much deeper achieve diversity must go beyond this and consider level,” she said. “The approach that’s taken with these strategies has whether individuals they recruit have a true sense of to recognize and acknowledge that the expectation belonging and inclusion within the offi ce culture. Offer benefi ts that will attract diverse candidates people have is for a much more individualized ap- The benefi ts an organization provides can help to proach,” Alper-Leroux said. “If you don’t understand “You can bring in individuals and select and create build an inclusive culture, noted Oliva. Her fi rm of- where someone is, you won’t be able to target the ap- a much more diverse workplace,” said Cecile fers employers student-loan-repayment solutions, propriate strategies to make a difference.” Alper-Leroux, vice president of human capital for instance, that she said can be helpful in attracting management innovation at Ultimate Software. “But more diverse candidates. This requires managers to take the time to get to it’s much, much more diffi cult and much, much more know employees, Artuz said. “You really need to meet complicated to measure whether or not you have an “Student loans disproportionately affect women in them face to face, where they are — What are their inclusive culture.” this country,” said Oliva. “64% of all student-loan needs? —and have an honest conversation about how debt is held by women. Student-loan debt also dis- you can meet those needs,” he said. How can HR professionals help their organizations proportionately affects minorities in this country. achieve their goals for diversity and inclusion? Here They hold more debt. They hold it at higher rates. Many fi rms also fi nd that customizing benefi ts is im- are some best practices that emerged from the panel They take longer to pay it off.” portant, too, said Oliva. Companies that are not sure discussion: if their benefi ts speak to a diverse workforce can offer The Crain’s survey underlined the importance of stu- choice through cafeteria plans, she advised. “That is Focus on culture dent-loan repayment programs. It found that 54% of so you are building a package that speaks to as many An organization’s commitment to diversity and in- respondents said student-loan-repayment benefi ts people as possible,” she said. clusion must start with its Board of Directors and infl uenced candidates’ employment decisions, with CEO, and infuse the entire culture to be successful, only health insurance and retirement benefi ts play- Measure results noted panelist Edwin Artuz, senior vice president, ing a bigger role. Despite this awareness, only 1% of Measurement of how well a company is doing in head of corporate services and director of diversity respondents work for employers that currently offer fostering diversity and inclusion is challenging, and inclusion for the Federal Home Loan Bank of student-loan repayment benefi ts, and only 4% say acknowledged panelists. If inclusion is defi ned as “belonging,” said Alper-Leroux, “How do you mea- sure whether or not someone feels they belong in an organization?” Artuz, whose organization is committed to the de- tailed monitoring of its efforts, said that asking ques- tions at a departmental level about the work employ- ees are actually doing once hired can be particularly illuminating. Questions such as, “How many women or minorities led a major organizational project?” are important to ask, he said. “It’s not enough to have OFFICIAL Connecting•Learning•Growing NEW YORK CITY minorities and women in the room, their input and SHRM CHAPTER contribution to the discussion promotes an inclusive New York City SHRM membership provides YOU with culture that benefi ts everyone,” he said. ANNUAL BENEFITS including: Enforce policies equitably A fi rm needs a strong Human Resources department, • 40+ Seminars and Workshops in All Areas of HR • Annual Conferences: that has been delegated responsibility and authori- • Networking with Diverse HR Professionals o Legal and Legislative ty from the top, to take the lead when violations of • Three Month Subscription to Crain's New York Business o Annual HR Conference workplace behavior surface, and not just stand on the sidelines. No one, including the CEO, should be con- • Access to the Latest HR News, Issues and Trends • Legal Update Breakfast sidered exempt by HR professionals, Artuz explained. • HR Business Directory • Networking Events HR professionals represent the company when deal- • 1,000+ HR Job Postings • Strategic Partnership and Discounts ing with any violations of a fi rm’s policies and acting quickly and deliberately helps ensure that a fi rm’s • Professional Development o World at Work culture is fair and respectful at all times, Artuz noted. o Mentoring Program o Pay Scale “If I do the right thing, everything else falls in line,” he said. o Leadership Opportunities • 40+ Recertification Hours (SHRM and HRCI) • Speaker Select Series with Authors Embrace transparency In today’s transparency-focused environment, em- MEMBERSHIP - $95 for a full year ployees expect clear communication about how an Must be a member of SHRM National organization is addressing issues such as sexual ha- JOIN NOW - www.nycshrm.org rassment, Alper-Leroux said. “It’s what people expect and what they want to see,” said Alper-Leroux. And “I didn't know how to start my HR Career; but NYC SHRM helped to with millennials embracing that trend and taking on 877-625-4769 get me on the path to success” ~ Member since 2015 a bigger role in the workplace, that trend shows no signs of slowing down. “New York City SHRM is my best resource for all things [email protected] HR in New York City!” ~ Member since 2008 ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS HRRedefined_4pagespread.indd 3 4/19/2018 12:28:57 PM HR in the age of articial intelligence and big data Big data and artificial intelligence may someday re- Coaching ed activities,” he said. shape human resources departments—and based on Chatbots could be useful in prompting employees in the results of the Crain’s New York Business HR Re- areas such as customer service on how to improve Some HR professionals anticipated a direct impact on defined Study, that day may come soon for many New their performance. Among those surveyed, 17% ex- their department. Among respondents, 46% agreed York City companies. pected their company to use chatbots for coaching in with the statement, “I am concerned about how AI the next five years. will impact the culture and morale of my HR depart- Among the 200+ HR professionals surveyed in the ment,” and 26% agreed with the statement, “AI will spring of 2018, many reported that their HR depart- How would this actually work? Companies could po- decrease my HR personnel substantially in the next ments were likely to embrace new technologies. Con- tentially use them to coach customer service reps, 5 years.” sider these results: Artuz said at the discussion. A chatbot might tell a customer service pro who is losing patience, “Take There are also other challenges that come with the • 71% of respondents said their company or orga- a breather. You need to be a bit more empathetic,” embracing of new technologies, noted HR profes- nization was “very” or “somewhat” likely to use Artuz explained. sionals on the panel. Given the large amount of data HR analytics or big data to improve operations or being collected by many companies, the threat of em- help validate the value of HR’s contributions in Unintended consequences ployee personal data getting into the wrong hands is the next five years Although many HR professionals are aware of the a serious hazard, noted Artuz. “The security concerns • 61% said their organization was “very” or “some- benefits of new technologies, many have mixed feel- we currently have with personal data—that becomes what” likely to embrace software that assesses a ings about them. One concern is the elimination of more and more of a risk,” said Artuz. greater number of qualified candidates in the jobs. next five years Meanwhile, the same technologies that could be used • 48% expected their employers to opt for software A widely cited 2013 study at Oxford University found to prevent the stealing of company secrets or detect- that addresses bias in recruiting that there is a 90% probability that assistant level ing if employees are doing anything illegal, also have • 23% said artificial intelligence was one of the human resources tasks (with the exception of payroll the potential to become “Big Brother,” noted Artuz. highest priorities for their HR department in the and time-keeping) will at some point be automated, next five years and a 31% chance that human resources, training and However, seeing no signs of technology slowing down, labor-relations specialists’ jobs will be as well. Higher many HR professionals are prepared to take an active “There are a lot of positives to artificial intelligence,” level jobs, however, seem to have more staying power. role in helping their departments integrate it in pos- said Edwin Artuz, senior vice president, head of cor- For human resources managers, there is a .6% chance itive ways. Among the Crain’s survey respondents, porate services and director of diversity and inclu- that their jobs will be automated, according to the 57% said they anticipated having conversations to sion for the Federal Home Loan Bank of New York, at study. convince management that AI wouldn’t be able to re- the panel discussion held by Crain’s Custom Studio at place some of the HR functions currently done by hu- its New York City office on April 10. Respondents in the Crain’s survey were well aware of man beings. “There are so many different ways they the implications of AI. “It definitely is going to re- can use AI,” said one respondent. “They have to make So how will technology change HR? Among the move jobs from the workplace,” said one respondent. sure that when they make those decisions, they’re tech-driven changes HR professionals are anticipat- “From a people perspective, I think that’s going to be done for the right reasons, in the right locations, and ing include: a problem, but from an internal perspective, I think they don’t take away the human touch.” there are so many different ways they can use AI.” Fewer routine tasks Artuz agreed: “We may not be hiring as many people Many HR professionals envision AI as way to stream- in the future, but AI will free up time from current line administrative tasks related to recruiting, re- employees so that they can focus on more value-add- tention and employee development. Among survey respondents, 33% said it is likely that their firm will use blockchain technology in the next five years to recruit and verify candidates. As one survey respondent noted, AI “would definitely be helpful in recruiting, so that you could apply more filters and search for people.” Another respondent was already working on incorporating AI into their firm’s talent acquisition program so HR pros could pull resumes based on keywords. Greater ease in analyzing internal data For employers looking to assess factors like wheth- er employees feel a sense of inclusion in the work- place, new technology may be useful in analyzing survey data, noted panelist Cecile Alper-Leroux, vice president of human capital management innovation at Ultimate Software. Alper-Leroux pointed to an ongoing study by AnitaB.org, a nonprofit that promotes the advancement of women in technology. The research looks at whether a workplace culture is truly inclusive, based on sentiment, using natural language processing, she explained. “Through that, they can actually measure their progress against benchmarks,” she said. “It’s really looking at what words are used to gauge whether they feel they be- long.” Survey respondents pointed to the increasing need in this new, data-driven environment for HR profes- sionals to sharpen their analytic prowess. “It’s proba- bly the most important skill that any professional can have,” said one respondent. “The funny part is that if you have been in the workforce for a long time, you may or may not have the skill as in depth as someone that is newer to the work force.” HR professionals “really need to learn how to use numbers to tell the story, because if you can’t tell the story, you can’t plan for the future,” the respondent said. ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS HRRedefined_4pagespread.indd 4 4/19/2018 12:28:57 PM CAR BIZ Are car dealers headed Low-overhead auto brokers are changing the game for traditional dealerships for a crack-up? BY MATTHEW FLAMM reen and white balloons oat above Jeep Wranglers and Dodge Explor- ers inside the Manhattan Jeep Chrysler Dodge Ram dealership on 11th Avenue near West 48th Street. In an adjacent outdoor lot, red-white- BROKERS such as Birenboym and-blue streamers utter above used models. help dealers hit quotas, but at Court papers, however, tell a less cheerful story: In March the fran- what cost? Gchisees led for Chapter 11 bankruptcy protection, citing a debt of more than $22 million to their chief lender. e ling included a related Alfa Romeo Fiat deal- ership a few blocks away. e bankruptcy was the second to hit Manhattan’s auto row in less than a year. A nearby Jaguar Land Rover dealership that included Maserati and Ford franchises BUCK ENNIS went bust in July with debts of more than $60 million. It sold at auction in September. 22 | CRAIN’S NEW YORK BUSINESS | APRIL 23, 2018 P022_P_25_CN_20180423.indd 22 4/19/18 12:54 PM Industry experts said the two bankruptcies point to the growing pressures of a changing automotive retail landscape. On the one hand are escalating rents in an expen- sive Manhattan neighborhood. On the other is increasingly intense competition from a little known but rapidly growing part of the industry: automotive leasing brokers, who market themselves on the web and base their operations in modest quarters rather than inside a sleek 11th Avenue showroom. Numbering in the hundreds and concentrated in the outer boroughs, the brokers are part of a shi to digital car-shopping that includes the growth of CarMax, Carvana and Vroom. And there are signs that Amazon could start selling cars. “I don’t want to sound like an alarmist, but I think within 10 years, half of these franchised dealerships SCHIENBERG’S trade group will be gone, and not just in Manhattan,” said Max is pushing for regulations Zanan, a Midtown-based automotive-retail consul- to rein in brokers. tant. “Companies like Amazon have trained custom- ers to expect complete transparency. ey expect that transparency when they’re shopping for a car, e concern is the long-term toll that broker Brokers can thank carmakers for at least some of and they’re not getting it” from dealerships. sales could have on automobile retailing. that growth. Manufacturers have embraced incen- For New York dealers, leasing brokers repre- tive programs for dealerships in recent years. ose sent the most immediate threat. Dealers frequently Self-dealing include aggressive “stairstep” programs, in which complain that brokers operate outside the law, but Brokers rst appeared decades ago in small num- hitting escalating targets results in bigger bonuses. the two sectors share a complicated, symbiotic bers in Hasidic neighborhoods in Brooklyn. Some e incentive payments have become integral to relationship. are still rooted in ethnic communities, but they now how dealers structure their prices. Brokers need dealers: Under state law, only fran- outnumber the city’s dealerships, which are down “Many dealers make almost no money on a new chisees can sell cars straight from the manufacturer. to 105, 24% fewer than 15 years ago, according to car sale,” said Patrick Anderson, chief executive of But dealers also need brokers, whose purchases help consulting rm Urban Science. ( e biggest drop Anderson Economic Group, a research and con- dealers hit their sales targets. coincided with the Great Recession.) sulting rm in East Lansing, Mich. “ ey have to THE NEW TEN-X COMMERCIAL DASHBOARD TRANSACTIONS SIMPLIFIED The new Ten-X Commercial Dashboard gives you greater transparency and control, enabling more informed business decisions. From this real-time window into buyer interest and activity you can monitor and manage all of your Ten-X listings. See for yourself how The Ten-X Commercial Dashboard can advance your business. For a personal demo, call 888-770-7332 or email [email protected]. BROKERS such as Birenboym help dealers hit quotas, but at what cost? TEN X.COM/COMMERCIAL APRIL 23, 2018 | CRAIN’S NEW YORK BUSINESS | 23 P022_P_25_CN_20180423.indd 23 4/20/18 2:21 PM CAR BIZ RACING INTO TECH make money on incentive payments from the man- IN THEIR BATTLE TO STAY COMPETITIVE in an online world, brick-and-mortar franchise deal- ufacturer, from service and from auxiliary things, erships are nally getting some help. like nancing. at’s been the situation for the past Two-year-old car-leasing app Honcker is giving dealers their very own online marketplace. Users ve years, but now sales are slowing, so the strain is can nd locally available models at competitive prices and close a deal with a few clicks. And six-year- starting to show.” old AutomotiveMastermind (featured last year in the Crain’s Fast 50) is using predictive analytics to Incentive bonuses can total $1,000 to $2,000 per help dealerships gure out what their customers might be in the market to buy—and keep them from car, depending on the manufacturer. But o en deal- shopping elsewhere. Both companies are growing quickly. ers hit the targets only by selling a portion of their In February Honcker raised $23 million from Barry Diller–led IAC to fuel its national expansion. The Manhattan startup has nearly 400 dealerships on its platform, including big names in the New inventory—pretty much at cost—to brokers. York area such as Bram Auto Group and Atlantic Auto Group. As a result, the dealerships lose out on the “We are trying to offer dealers a solution that feels like Amazon to them and to their customers,” high-margin parts-and-service business that’s built said founder and CEO Nathan Hecht. “And it’s working.” on relationships with loyal customers. Along with Hecht founded Honcker after his rst attempt to lease a car from a dealership. He previously had secondhand sales, service is the most pro table used a broker, but the process involved too much back-and-forth over model and price. The dealership piece of their operations. But broker sales get them wasn’t any better. He spent the day going over “packages” and left without a car. through each month. Honcker is designed to be quick and ef cient. “The price you see is the price you pay,” Hecht said. “We help them survive,” said Zoriy Birenboym, Just as important, the dealers, who deliver the car to the user, maintain their relationship with the chief executive of eAutoLease, a three-year-old bro- customer—which they lose when they sell through a broker. That allows them to grow their service- kerage in Sheepshead Bay, Brooklyn. Birenboym has and-parts business, a traditional pro t center. been in the brokering business since he was 16—half AutomotiveMastermind is likewise helping dealers with customer retention. his life. “Our technology focuses on analyzing customer behavior and understanding how to engage at the “ e manufacturers give the dealerships very right time with the right message,” said co-founder and CEO Marco Schnabl. “Rather than calling you high quotas,” he said. “Sometimes they get forced a month before your lease ends, I might engage with you a year before.” Pitching customers earlier to take on inventory they don’t want. ey borrow and with a sense of their preferences, the dealer can sell products at a higher price point—and a money for every unit, and the interest is piling up. greater pro t. ey want to hit those bonuses, and they can’t do it In September global data giant IHS Markit paid nearly $400 million for a majority stake in the on their own. at’s where we come in.” Manhattan-based company, which is being used by about 70% of New York’s luxury dealerships, Birenboym said he has partnerships with “most Schnabl said. of the dealerships” in the tristate area and can pro- “Building a long-lasting relationship is a sustainable business model,” he said. “Selling cars at a vide buyers with almost any make and model within loss to a broker is not.” — M.F. days. He keeps prices competitive with nearby deal- erships—and other brokers—by operating out of a second-story, 3,000-square-foot o ce on Nostrand Avenue, plus a basement garage to store vehicles overnight. Transactions are handled online and over the phone. One of his 30 or so sales sta members deliv- ers the car to the customer’s door. As Birenboym sees it, eAutoLease is oering a needed service to busy New Yorkers—and it boasts hundreds of ve-star DealerRater reviews to prove it. Clients can choose a car from any brand, rather than be limited to what a single dealership oers. And the dealers he buys from expand their reach. “I am providing customers who would never walk into their dealership,” he said. Large broker businesses move more than 200 cars per month, according to insiders. More than 31,000 vehicles were sold into Brooklyn through brokers in 2016, according to dealership network Bram Auto Group, which looked at sales coming from dealers HECHT launched Honcker after outside the market. at’s more than half of all new trying to lease a car the old- vehicles registered in the borough that year. fashioned way. “It’s impossible for dealerships to grow,” said John Coscia, Bram’s chief nancial o cer. Not all in Many dealers won’t sell to brokers—and others you want to sell a car for what you paid for it and connected them to a spike in deals that originated who do would prefer not to. ose dealers said the create competition for yourself outside of all the at out-of-state dealerships, primarily in New Jersey. practice undermines the trade-o implicit in the competition you already have?” “New York loses corporate taxes on the business,” dealership model: franchisees invest in training and Cochrane, who also manages a Volkswagen deal- Schienberg said. “It loses money from employment.” facilities, meeting demanding standards set by the ership in Bayside, adds that selling to brokers isn’t Out-of-state and even upstate dealers are big sup- manufacturers, and get marketing support and a rel- just bad for business in the long term. It’s also a dan- pliers to the city’s brokers, he said, because the deals atively exclusive sales territory in return. gerous gamble because a dealership that doesn’t hit don’t threaten their own sales. But consumers do not e incentive programs, however, push dealers to its bonus targets—which can involve other metrics necessarily bene t. A car coming from New Jersey is act like wholesalers. And the carmakers, with rare beyond sales, including customer satisfaction—can subject to a $500 documents fee, for instance, while exceptions, don’t bat an eye. dig itself into a big hole. the fee for a car from New York is just $75. “Manufacturers don’t really care—they’re moving “ at’s where the stairsteps become a nightmare,” “ ere’s no oversight of brokers from a manufac- the inventory,” said Eric Snyder, a partner at Man- she said. “You negotiated away your pro ts and now turer,” Schienberg said. “ ey have no investment in hattan law rm Wilk Auslander who handled both you nd yourself with a bigger loss.” property—we found one working in the back of a recent dealership bankruptcies. “But for dealers, And there are other costs associated with selling barber shop in Bay Ridge. If something is promised [selling to brokers] puts them between a rock and a to brokers, according to the Greater New York Auto- and not delivered, there’s no recourse.” hard place. And it slowly, slowly erodes the meaning mobile Dealers Association, which has pushed legis- During the past ve years, the trade group has behind the franchise.” lation to rein in the business. worked with Assemblyman Peter Abbate and Sen. But carmakers don’t deserve all the blame. “ e state loses a tremendous amount of money,” Martin Golden, both of Brooklyn, to force stricter “Dealers are their own worst enemy,” said said association President Mark Schienberg, who regulations on brokers, starting with requirements Suzanne Cochrane, general manager of Helms Bros., began monitoring brokers on Staten Island a couple that they be licensed and bonded. e latest version a Mercedes-Benz dealership in Bayside, Queens, of years ago following complaints from his mem- of those rules will take eect in June. A recently BUCK ENNIS that does not do business with brokers. “Why would bers. e organization counted some 50 brokers and passed bill also requires brokers to disclose all fees 24 | CRAIN’S NEW YORK BUSINESS | APRIL 23, 2018 P022_P_25_CN_20180423.indd 24 4/19/18 12:51 PM “WITHIN 10 YEARS HALF 22 OF THESE FRANCHISED DEALERSHIPS WILL BE hofstra GONE—AND NOT JUST IN MANHATTAN” and commissions. Brokers said they welcome the regulations. “ is takes us out of the shadows,” said David Hazan, president of Montage Auto Leasing, near Ditmas Park, Brooklyn. Last year Hazan founded Gala the New York Auto Brokers Association, a group that includes about 100 of his colleagues, as part of the industry’s e orts to ensure the rules “protected clients, not just dealerships,” he said. Steven Witkoff, BA, ’80; JD, ’83 Hazan said it’s unfair that brokers will have to disclose their commission—something no dealer- ship is required to do. But he does hope the legisla- tion ushes out y-by-night operators. He insisted they are the exceptions. He also pointed out that bad Thursday, May 3, 2018, 7 p.m. actors can be found among dealerships too. “Google my name and see what kind of feedback hofstragala.com you get,” Hazan said. “And Google certain dealer- or call 516-463-5339. ships in Brooklyn and you’ll see quite a contrast.” Brokers employ plenty of people in decent-paying jobs, he said, and bring business to local garages and body shops. And in the face of intense competition from other brokers, they can be the equal of any dealer when it comes to looking a er clients. More important, he argued, they are providing a transpar- ent means of buying a car—which many New York- Ad HofstraGala2018_CrainsNY.indd 1 4/10/18 2:29 PM ers prefer. “We break that typical BS-type mold that dealer- ships have been deploying for years, where you come in, they sit you down, and it becomes this whole daylong process,” Hazan said. “With our service, a client calls me up; says, ‘David, I’m interested in a Nissan Maxima’; gives me the color and the options; and I say, ‘Here’s the price. I can deliver it to you by Wednesday.’ ” Tapping the breaks /ŶĐŽŶŶĞĐƟŽŶǁŝƚŚƚŚĞĂĐƋƵŝƐŝƟŽŶŽĨ&ŝƌƐƚEŝĂŐĂƌĂ&ŝŶĂŶĐŝĂůŽƌƉŽƌĂƟŽŶďLJ<ĞLJŽƌƉ͕ĂŶĚƉƵƌƐƵĂŶƚƚŽĂŶ Both Schienberg and Cochrane said manufactur- ĂŐƌĞĞŵĞŶƚǁŝƚŚƚŚĞh͘^͘ĞƉĂƌƚŵĞŶƚŽĨ:ƵƐƟĐĞ͕<ĞLJĂŶŬEĂƟŽŶĂůƐƐŽĐŝĂƟŽŶŽīĞƌƐƚŚĞƉƌŽƉĞƌƟĞƐůŝƐƚĞĚ ers could put a lid on the broker business either by ďĞůŽǁĨŽƌƐĂůĞ͕ĂƐƐŝŐŶŵĞŶƚŽƌƐƵďůĞĂƐĞƚŽŝŶƚĞƌĞƐƚĞĚĚĞƉŽƐŝƚŽƌLJŝŶƐƟƚƵƟŽŶƐŽīĞƌŝŶŐĚĞƉŽƐŝƚĂŶĚĐƌĞĚŝƚ not counting sales to brokers as part of the incen- ƉƌŽĚƵĐƚƐĂŶĚƐĞƌǀŝĐĞƐ͘dŚĞƐĞƉƌŽƉĞƌƟĞƐĂƌĞĐƵƌƌĞŶƚůLJƵƟůŝnjĞĚĂƐďĂŶŬďƌĂŶĐŚĞƐǁŚĞƌĞĞdžŝƐ Ɵ Ŷ ŐďƌĂŶĐŚ tive plans or by getting rid of stairstep programs ŽƉĞƌĂƟŽŶƐĂƌĞ͕ƐƵďũĞĐƚƚŽƌĞŐƵůĂƚŽƌLJĂƉƉƌŽǀĂů͕ĐĞĂƐŝŶŐĂƐŽĨƚŚĞĐůŽƐĞŽĨďƵƐŝŶĞƐƐŽŶ:ƵŶĞϮϮ͕ϮϬϭဒ͘ altogether. Neither option seems likely, however, <ĞLJĂŶŬEĂƟŽŶĂůƐƐŽĐŝĂƟŽŶ͕ƚŚƌŽƵŐŚůŽĐĂůďƌŽŬĞƌƐĚĞƐŝŐŶĂƚĞĚďĞůŽǁ͕ǁŝůůĞŶƚĞƌƚĂŝŶŽīĞƌƐŽŶƚŚĞƐĞ especially as manufacturers focus on maintaining ƉƌŽƉĞƌƟĞƐ ĨƌŽŵ ƋƵĂůŝĮĞĚ ĚĞƉŽƐŝƚŽƌLJ ŝŶƐƟƚƵƟŽŶƐ ĂŶĚ͕ ƐƵďũĞĐƚ ƚŽ ĞƉĂƌƚŵĞŶƚ ŽĨ :ƵƐƟĐĞ ĂƉƉƌŽǀĂů͕ sales volume. Nationwide, auto sales continue to dip from their ĨƌŽŵ ŶŽŶͲĚĞƉŽƐŝƚŽƌLJ ďŝĚĚĞƌƐ ƐŚŽƵůĚ ŶŽ ĐŽŵŵĞƌĐŝĂůůLJ ĂƉƉƌŽƉƌŝĂƚĞ ŽīĞƌƐ ĨƌŽŵ ƋƵĂůŝĮĞĚ ĚĞƉŽƐŝƚŽƌLJ 2016 high of 17.5 million vehicles. Last year sales ŝŶƐƟƚƵƟŽŶƐďĞƌĞĐĞŝǀĞĚ͘ totaled 17.1 million, and this year they are forecast KeyBank Branch Lease Local Contact Company Branch Address City State Zip Close Interest džƉŝƌĂƟŽŶ Broker Phone Email Address Name to fall below 17 million, according to Autotrader. Name Date Date Name Number “One of the things you see when sales dip is ENY - Syracuse incentives from manufacturers go up,” Autotrader dŚĞ ĚĂŵƐ DĂŝŶ^ƚƌĞĞƚ͕ ůŝƐŽŶ ϱϭဒͲϳဒϱͲဒϮϬϬ ĚĂŵƐĞŶƚĞƌ Ez ϭϯϲϬϲ ϱͬϮϱͬϮϬϭဒ KǁŶ Eͬ ĂƌƚŵŽƵƚŚ ĂďƵƌŶƐŝĚĞΛĚĂƌƚĐŽ͘ĐŽŵ analyst Michelle Krebs said. ĞŶƚĞƌ ZŽƵƚĞϭϭ ƵƌŶƐŝĚĞ džϯ ŽŵƉĂŶLJ Some manufacturers consider brokers part of the dŚĞ ϭůŝŶƚŽŶ^ƚ͕͘ ůŝƐŽŶ ϱϭဒͲϳဒϱͲဒϮϬϬ dƵůůLJ dƵůůLJ Ez ϭϯϭϱဓ ϱͬϮϱͬϮϬϭဒ KǁŶ Eͬ ĂƌƚŵŽƵƚŚ ĂďƵƌŶƐŝĚĞΛĚĂƌƚĐŽ͘ĐŽŵ sales equation. “ e reality is that consumers in New WKŽdžϲϯϬ ƵƌŶƐŝĚĞ džϯ York have a choice whether or not to use these buy- ŽŵƉĂŶLJ ing services, and some have been doing so for many ƵīĂůŽ ZŝĐŚĂƌĚ: >ĞǁŝƐƚŽŶ ƵƐŚŵĂŶ ϭဓϬ^ŽƵƚŚ ^ĐŚĞĐŚƚĞƌ͖ years,” Nissan North America said in a statement. WůĂnjĂƌŝǀĞ >ĞǁŝƐƚŽŶ Ez ϭϰϬဓϮ ϲͬϭͬϮϬϭဒ KǁŶ Eͬ tĂŬĞĮĞůĚ ϳϭϲͲဒϱϮͲϳϱϬϬ ƌƐĐŚĞĐŚƚĞƌΛƉLJƌĂŵŝĚďƌŽŬĞƌĂŐĞ͘ĐŽŵ ϳƚŚ^ƚ dLJůĞƌ ƚďĂůĞŶƟŶĞΛƉLJƌĂŵŝĚďƌŽŬĞƌĂŐĞ͘ĐŽŵ hƉ WLJƌĂŵŝĚ “Likewise, dealers also make a choice: whether it is in ĂůĂŶƟŶĞ their best interests to sell, or not to sell, via a broker.” ZŝĐŚĂƌĚ: ƵƐŚŵĂŶ ϰϮϭ^ĞĐŽŶĚ ^ĐŚĞĐŚƚĞƌ͖ zŽƵŶŐƐƚŽǁŶ zŽƵŶŐƐƚŽǁŶ Ez ϭϰϬဓϮ ϲͬϭͬϮϬϭဒ KǁŶ Eͬ tĂŬĞĮĞůĚ ϳϭϲͲဒϱϮͲϳϱϬϬ ƌƐĐŚĞĐŚƚĞƌΛƉLJƌĂŵŝĚďƌŽŬĞƌĂŐĞ͘ĐŽŵ It’s also not clear what manufacturers could do. A ^ƚ dLJůĞƌ ƚďĂůĞŶƟŶĞΛƉLJƌĂŵŝĚďƌŽŬĞƌĂŐĞ͘ĐŽŵ WLJƌĂŵŝĚ Chevrolet spokesman said it does not count broker ĂůĂŶƟŶĞ ZŝĐŚĂƌĚ: ƵƐŚŵĂŶ sales toward incentives. Ford Motor Co. said it no ^ŽƵƚŚWĂƌŬ ϭϱϭϬ^WĂƌŬ ^ĐŚĞĐŚƚĞƌ͖ ƵīĂůŽ Ez ϭϰϬϮϮ ϲͬϮϮͬϮϬϭဒ KǁŶ Eͬ tĂŬĞĮĞůĚ ϳϭϲͲဒϱϮͲϳϱϬϬ ƌƐĐŚĞĐŚƚĞƌΛƉLJƌĂŵŝĚďƌŽŬĞƌĂŐĞ͘ĐŽŵ ďďŽƩ ǀĞ dLJůĞƌ ƚďĂůĞŶƟŶĞΛƉLJƌĂŵŝĚďƌŽŬĞƌĂŐĞ͘ĐŽŵ WLJƌĂŵŝĚ longer uses stairstep programs and “does not sup- ĂůĂŶƟŶĞ port” broker sales. Asked via email if he could deliver virtually any ENY - Albany dŚĞ ,ŝůůƐĚĂůĞ ϮϲϮဒ^ƚĂƚĞ ůŝƐŽŶ ϱϭဒͲϳဒϱͲဒϮϬϬ Chevy or Ford model within a week, Birenboym ,ŝůůƐĚĂůĞ Ez ϭϮϱϮဓ ϲͬဒͬϮϬϭϳ >ĞĂƐĞ ϱͬϯϭͬϮϬϮϬ ĂƌƚŵŽƵƚŚ ĂďƵƌŶƐŝĚĞΛĚĂƌƚĐŽ͘ĐŽŵ ^ƵƉĞƌŵĂƌŬĞƚ ,ǁLJϮϯ ƵƌŶƐŝĚĞ džϯ replied right away. ŽŵƉĂŶLJ “Yes,” he wrote. “Let me know what you need.” ■ APRIL 23, 2018 | CRAIN’S NEW YORK BUSINESS | 25 P022_P_25_CN_20180423.indd 25 4/19/18 12:51 PM TO PLACE A CLASSIFIED AD, CALL 1 212-210-0189 OR EMAIL [email protected] PUBLIC & LEGAL NOTICES ALL PRO OPERATIONS LIMITED LIABILI- NOTICE of OF LAW OFFICES FORMA- Notice of Qualification of LIBREMAX GP Notice of Qualification of EMERGING TY COMPANY, Arts. of Org. filed with TION OF JARRETT ADAMS, PLLC, Arts of HOLDINGS, LLC Appl. for Auth. filed VARIANT PARTNERS A LP Appl. for the SSNY on 01/23/2018. Office loc: Org filed with Secy. of State of NY with Secy. of State of NY (SSNY) on 03 Auth. filed with Secy. of State of NY NY County. SSNY has been designated (SSNY) on 11/16/17. Office location: /19/18. Office location: NY County. (SSNY) on 02/16/18. Office location: as agent upon whom process against NY County. SSNY designated agent LLC formed in Delaware (DE) on 03/ NY County. LP formed in Delaware (DE) the LLC may be served. SSNY shall upon whom process may be served and 14/18. Princ. office of LLC: 600 Lexing- on 02/12/18. Princ. office of LP: 3 Co- mail process to: Fawwaz Ali, 451 Shep- shall mail copy of process against PLLC ton Ave., 19th Fl., NY, NY 10022. lumbus Circle, 15th Fl., NY, NY 10019. herd Avenue, Brooklyn, NY 11208. Pur- to 561 10th Ave, Unit 310, NY. NY, SSNY designated as agent of LLC upon Duration of LP is Perpetual. SSNY desig- pose: Any Lawful Purpose. 10036. whom process against it may be nated as agent of LP upon whom proc- served. SSNY shall mail process to the ess against it may be served. SSNY Notice of Formation of 174-176 1st Ave- Notice of Formation of BLUE BOAT DA- LLC, Attn: Fred Brettschneider at the shall mail process to Attn: Santiago nue Sponsor LLC. Arts. of Org. filed TA LLC Arts. of Org. filed with Secy. of princ. office of the LLC. DE addr. of Jariton at the princ. office of the LP. with Secy. of State of NY (SSNY) on 03 State of NY (SSNY) on 03/15/18. Of- LLC: c/o Corporation Service Co., 251 Name and addr. of each general part- /14/18. Office location: NY County. fice location: NY County. SSNY desig- Little Falls Dr., Wilmington, DE 19808. ner are available from SSNY. DE addr. SSNY designated as agent of LLC upon nated as agent of LLC upon whom proc- Cert. of Form. filed with Secy. of State of LP: c/o Corporation Service Co., 251 whom process against it may be ess against it may be served. SSNY of the State of DE, Div. of Corps., John Little Falls Dr., Wilmington, DE 19808. served. SSNY shall mail process to: c/ shall mail process to Corporation Serv- G. Townsend Bldg., Federal & Duke of Cert. of LP filed with Secy. of State of o Highpoint Property Group, 20 West ice Co., 80 State St., Albany, NY York Sts., Dover, DE 19901. Purpose: the State of DE, Div. of Corps., John G. 22nd St., Ste. 1601, NY, NY 10010, 12207-2543, regd. agent upon whom Any lawful activity. Townsend Bldg., Federal & Duke of Attn: Drew Popkin. Purpose: any lawful and at which process may be served. York Sts., Dover, DE 19901. Purpose: activities. E. 8th St. Associates LLC-Arts. of Org. Purpose: Any lawful activity. Any lawful activity. filed with Secy. of State of NY (SSNY) on 2/1/18. Office location: NY Co. NOTICE OF FORMATION OF DANY & Notice of Formation of 4EN CHARLES SSNY designated as agent of LLC upon Notice of Formation of 174-176 1st Ave- XANDER, LLC. Articles of Organization HOLDINGS LLC Arts. of Org. filed with whom process against it may be nue Investors LLC. Arts. of Org. filed filed with the Secretary of State of NY Secy. of State of NY (SSNY) on 03/ served. SSNY shall mail process to: c/ with Secy. of State of NY (SSNY) on 03 (SSNY) on 02/13/18. Office: NEW 27/18. Office location: NY County. o Myles Horn, 152 W. 57th St., NY, NY /14/18. Office location: NY County. YORK County. SSNY designated as SSNY designated as agent of LLC upon 10019. Principal address: 152 W. 57th SSNY designated as agent of LLC upon agent upon whom process against it whom process against it may be St., NY, NY 10019. Purpose: Any law- whom process against it may be may be served. SSNY shall mail a copy served. SSNY shall mail process to c/o ful activities. served. SSNY shall mail process to: c/ of any process to the LLC, 1636 3rd Corporation Service Co., 80 State St., o Highpoint Property Group, 20 West Ave, STE 101 New York NY 10128. Pur- Albany, NY 12207, regd. agent upon Notice of Qualification of TG 29 HOSPI- 22nd St., Ste. 1601, NY, NY 10010, pose: any lawful act or activity whom and at which process may be served. Purpose: Any lawful activity. TALITY, LLC Appl. for Auth. filed with Attn: Drew Popkin. Purpose: any lawful Secy. of State of NY (SSNY) on 03/ activities. NOTICE OF FORMATION OF HUT CON- 23/18. Office location: NY County. LLC SULTING LLC. Articles of Organization Notice of Formation of BRIDGETON DE- formed in Delaware (DE) on 02/21/18. VELOPMENT GROUP LLC Arts. of Org. filed with the Secretary of State of NY Princ. office of LLC: 2 Pennsylvania Pla- Notice of Formation of EGS CAPITAL, (SSNY) on 1/26/18. Office location: filed with Secy. of State of NY (SSNY) za, 19th Fl., NY, NY 10121. SSNY des- on 03/27/18. Office location: NY Coun- LLC Arts. of Org. filed with Secy. of NEW YORK County. SSNY has been ignated as agent of LLC upon whom State of NY (SSNY) on 03/05/18. Of- designated as agent upon whom proc- ty. Princ. office of LLC: 220 5th Ave., process against it may be served. 19th Fl., NY, NY 10001. SSNY desig- fice location: NY County. SSNY desig- ess against it may be served. The SSNY shall mail process to c/o Corpo- nated as agent of LLC upon whom proc- Post Office address to which the nated as agent of LLC upon whom proc- ration Service Co., 80 State St., Alba- ess against it may be served. SSNY ess against it may be served. SSNY SSNY shall mail a copy of any process ny, NY 12207-2543. DE addr. of LLC: shall mail process to c/o Timothy P. against the LLC served upon him/her shall mail process to Corporation Serv- 251 Little Falls Dr., Wilmington, DE ice Co., 80 State St., Albany, NY Terry, 667 Madison Ave., 24th Fl., NY, is: C/O HARUMI URATA-THOMPSON 19808. Cert. of Form. filed with DE NY 10065. Purpose: Any lawful activity 200 WEST 54TH ST., APT. 7 NEW 12207. Purpose: Any lawful activity. Secy. of State, Div. of Corps., John G. YORK, NEW YORK 10019. The princi- Townsend Bldg., 401 Federal St., Ste. pal business address of the LLC is: C Notice of Formation of BETANCES PART- 4, Dover, DE 19901. Purpose: Any law- Notice of Formation of YU-KING WONG /O HARUMI URATA-THOMPSON 200 NERS LLC Arts. of Org. filed with Secy. ful activity. D. C., PLLC. Arts. of Org. filed with WEST 54TH ST., APT. 7 NEW YORK, of State of NY (SSNY) on 04/04/18. Of- Secy. of State of NY (SSNY) on 3/ NEW YORK 10019. Purpose: any law- fice location: NY County. Princ. office Notice of Qualification of HARVEST 13/18. Office location: NY County. ful act or activity of LLC: c/o New York City Housing Au- EDGE GLOBAL RISK PREMIA EQUITY, SSNY designated as agent of LLC upon thority, Attn: General Counsel, 250 LP Appl. for Auth. filed with Secy. of whom process against it may be NOTICE OF FORMATION OF 8870 LINK, Broadway, 9th Fl., NY, NY 10007. State of NY (SSNY) on 03/05/18. Of- served. SSNY shall mail process to: c/ LLC. Articles of Organization filed with SSNY designated as agent of LLC upon fice location: NY County. LP formed in o Yu-King Wong, 1441 Broadway, Ste. the Secretary of State of NY (SSNY) on whom process against it may be Delaware (DE) on 02/28/18. Princ. of- 5052, NY, NY 10018. Purpose: to prac- February 26, 2018. Office location: served. SSNY shall mail process to the fice of LP: Harvest Volatility Manage- tice the profession of Chiropractic. NEW YORK County. SSNY has been LLC at the addr. of its princ. office. Pur- ment, LLC, The Graybar Bldg., 420 Lex- designated as agent upon whom proc- pose: Any lawful activity. ington Ave., Ste. 2620, NY, NY 10170. ess against it may be served. The Post Duration of LP is Perpetual. SSNY desig- Notice of Formation of by robynblair LLC Arts. of Org. filed with Secy. of State of Office address to which the SSNY shall NOTICE OF FORMATION OF Little Light- nated as agent of LP upon whom proc- NY (SSNY) on 04/02/18. Office loca- mail a copy of any process against the house Licensed Behavior Analyst and ess against it may be served. SSNY tion: NY County. SSNY designated as 8870 LINK, LLC served upon him/her Psychologist Support, PLLC. Articles of shall mail process to the Partnership, agent of LLC upon whom process is: 10091 Park Run Drive Ste 200 Las Organization filed with the Secretary of Attn: Curtis F. Brockelman, Jr., 420 Lex- against it may be served. SSNY shall Vegas, Nevada 89145.The principal NY (SSNY) on 2/26/2018. Office loca- ington Ave., Ste. 2656, NY, NY 10170. mail process to Corporation Service business address of the LLC is: 10091 tion: New York County. SSNY has been Name and addr. of each general part- Co., 80 State St., Albany, NY 12207- Park Run Drive Ste 200 Las Vegas, Ne- designated as agent upon whom proc- ner are available from SSNY. DE addr. 2543. Purpose: Any lawful activity. vada 89145. Purpose: any lawful act or ess against it may be served. The prin- of LP: c/o Corporation Service Co., 251 activity. cipal business address of the PLLC and Little Falls Dr., Wilmington, DE 19808. the Post Office address to which the Cert. of LP filed with Secy. of State of Notice of Qualification of PINZ CAPITAL SSNY shall mail a copy of any process the State of DE, Div. of Corps., John G. Notice of Formation of PAUL ARNHOLD SPECIAL OPPORTUNITES USA, LP Appl. against the PLLC is Dr. Ivana Townsend Bldg., Federal & Duke of GLASS, LLC Arts. of Org. filed with for Auth. filed with Secy. of State of NY Krstovska-Guerrero, 99 Hillside Ave, York Sts., Dover, DE 19901. Purpose: Secy. of State of NY (SSNY) on 03/ (SSNY) on 03/07/18. Office location: Apt 16 J, New York, NY 10040. Pur- Any lawful activity. 06/18. Office location: NY County. NY County. LP formed in Delaware (DE) pose: Any lawful act or activity Princ. office of LLC: 500 W. 21st St., Notice of Formation of Northern Manhat- on 02/27/18. Duration of LP is Perpet- #4A, NY, NY 10011. SSNY designated tan Nanny LLC. Arts of Org filed with ual. SSNY designated as agent of LP as agent of LLC upon whom process Notice of Qualification of 30 PARK Secy. of State of NY (SSNY) on 8/ upon whom process against it may be against it may be served. SSNY shall PLACE UNIT 74A-1 LLC Appl. for Auth. 10/17. Office location: NY County, served. SSNY shall mail process to the mail process to Paul Arnhold at the filed with Secy. of State of NY (SSNY) SSNY designated agent upon whom Partnership, 150 E. 52nd St., 29th Fl., princ. office of the LLC. Purpose: Any on 02/28/18. Office location: NY Coun- process may be served and shall mail NY, NY 10022. The regd. agent of the lawful activity. ty. LLC formed in Delaware (DE) on 11/ copy of process against LLC to 45 company upon whom and at which proc- 01/17. SSNY designated as agent of Wadsworth Ave, Fl. 8, NY NY 10033. ess against the company can be served Notice of Formation of Amenia AD 1, LLC upon whom process against it may Purpose: any lawful act. is Matthew Pinz, c/o Pinz Capital Man- LLC. Arts of Org filed with Secy.Of be served. SSNY shall mail process to agement, LP, 150 E. 52nd St., 29th State of NY (SSNY) On 3/20/18. Office c/o Corporation Service Co., 80 State Notice of Formation of HBX 41 Divi- Fl., NY, NY 10022. Name and addr. of Location: NY County. SSNY designated St., Albany, NY 12207-2543. DE addr. sion LLC. Arts. of Org. filed with SSNY each general partner are available from agent Upon whom process May be of LLC: 251 Little Falls Dr., Wilmington, on 1/11/18. Office location: NY Coun- SSNY. DE addr. of LP: 251 Little Falls served and Shall mail copy of Process DE 19808. Cert. of Form. filed with DE ty. SSNY designated as agent for proc- Dr., Wilmington, DE 19808. Cert. of LP against LLC To 10 East 40th Street, Secy. of State, John G. Townsend ess and shall mail to: 442 Broadway, filed with Secy. of State of the State of 10th FL, NY, NY 10016. Purpose: any Bldg., 401 Federal St., Dover, DE Ste. 2F, NY NY 10013. Purpose: Any DE, 401 Federal St., Dover, DE 19901. lawful act. 19901. Purpose: Any lawful activity. lawful activity. Purpose: Any lawful activity. 26 | CRAIN’S NEW YORK BUSINESS | APRIL 23, 2018 P026-27_CN_20180423.indd 46 4/20/2018 12:03:19 PM TO PLACE A CLASSIFIED AD, CALL 1 212-210-0189 OR EMAIL [email protected] PUBLIC & LEGAL NOTICES Notice of Qualification of HIPPOCRATES Notice of Formation of 10 EAST 28TH Notice of Qualification of CS ADJACENT Notice of Qualification of LIBREMAX CAPI- VENTURES, LLC Appl. for Auth. filed STREET, 5K LLC Arts. of Org. filed with INVESTMENT PARTNERS GP, LLC TAL HOLDINGS, LP Appl. for Auth. filed with Secy. of State of NY (SSNY) on 03 Secy. of State of NY (SSNY) on 04/ Appl. for Auth. filed with Secy. of State with Secy. of State of NY (SSNY) on 03/ /15/18. Office location: NY County. 03/18. Office location: NY County. of NY (SSNY) on 03/02/18. Office loca- 19/18. Office location: NY County. LP LLC formed in Delaware (DE) on 03/ SSNY designated as agent of LLC upon tion: NY County. LP formed in Delaware formed in Delaware (DE) on 03/14/18. 07/18. SSNY designated as agent of whom process against it may be (DE) on 02/09/18. Duration of LP is Princ. office of LP: 600 Lexington Ave., LLC upon whom process against it may served. SSNY shall mail process to Cor- Perpetual. SSNY designated as agent 19th Fl., NY, NY 10022. Duration of LP be served. SSNY shall mail process to poration Service Co., 80 State St., Alba- of LP upon whom process against it is Perpetual. SSNY designated as agent c/o Corporation Service Co., 80 State ny, NY 12207-2543. Purpose: Any law- may be served. SSNY shall mail proc- of LP upon whom process against it may St., Albany, NY 12207-2543. DE addr. ful activity. ess to c/o CapitalSpring, 575 Lexing- be served. SSNY shall mail process to c/ of LLC: 251 Little Falls Dr., Wilmington, ton Ave., NY, NY 10022. Name and o LibreMax GP Holdings, LLC, Attn: Fred DE 19808. Cert. of Form. filed with RD REAL ESTATE DEBT NEB II LLC. addr. of each general partner are availa- Brettschneider at the princ. office of the Secy. of State, Div. of Corps., 401 Fed- Arts. of Org. filed with the SSNY on 02/ ble from SSNY. DE addr. of LP: Corpora- LP. Name and addr. of each general part- eral St., Ste. 4, Dover, DE 19901. Pur- 08/18. Office: New York County. SSNY tion Service Co., 251 Little Falls Dr., ner are available from SSNY. DE addr. of pose: Any lawful activity. designated as agent of the LLC upon Wilmington, DE 19808. Cert. of LP filed LP: c/o Corporation Service Co., 251 Lit- whom process against it may be with Secy. of State, State of DE, Dept. tle Falls Dr., Wilmington, DE 19808. Notice of Qualification of 30 PARK served. SSNY shall mail copy of proc- of State, Townsend Bldg., Dover, DE Cert. of LP filed with Secy. of State of the PLACE UNIT 74A LLC Appl. for Auth. ess to the LLC, c/o RD Advisors LLC, 19901. Purpose: Any lawful activity. State of DE, Div. of Corps., John G. Town- filed with Secy. of State of NY (SSNY) 341 West 38th Street, Suite 800, New send Bldg., Federal & Duke of York Sts., on 02/28/18. Office location: NY Coun- Notice of Formation of AUBREY VEN- York, NY 10018. Purpose: Any lawful Dover, DE 19901. Purpose: Any lawful ty. LLC formed in Delaware (DE) on 05/ TURES 2 LLC Arts. of Org. filed with purpose. activity. 31/17. SSNY designated as agent of Secy. of State of NY (SSNY) on 03/ LLC upon whom process against it may 07/18. Office location: NY County. Notice of Formation of TRIPLE D LEND- be served. SSNY shall mail process to Notice of formation of The Center for In- Princ. office of LLC: P.O. Box 20366, 4 ER LLC Arts. of Org. filed with Secy. of c/o Corporation Service Co., 80 State tegrative Therapies, LLC. Arts of Org E. 27th St., NY, NY 10001-9998. State of NY (SSNY) on 03/23/18. Of- St., Albany, NY 12207-2543. DE addr. filed with Secy. of State of NY (SSNY) SSNY designated as agent of LLC upon fice location: NY County. SSNY desig- of LLC: 251 Little Falls Dr., Wilmington, on 10.12.17. Office location: NY Coun- whom process against it may be nated as agent of LLC upon whom proc- DE 19808. Cert. of Form. filed with DE ty. SSNY designated agent upon whom served. SSNY shall mail process to the ess against it may be served. SSNY Secy. of State, John G. Townsend process may be served and shall mail LLC, Greeley Square Station at the shall mail process to the LLC, Attn: Bldg., 401 Federal St., Dover, DE copy of process against LLC to 1201 princ. office of the LLC. Purpose: Any General Counsel, One Bryant Park, NY, 19901. Purpose: Any lawful activity. Broadway, Suite 1003 NY, NY 10001. lawful activity. NY 10036. Purpose: Any lawful activity. NOMINATIONS N O W O P E N CRAINSNEWYORK.COM/FAST50NOMINATE APRIL 23, 2018 | CRAIN’S NEW YORK BUSINESS | 27 P026-27_CN_20180423.indd 27 4/20/2018 3:21:39 PM GOTHAM GIGS MOSCOT joined the family business six years ago. He focuses on design. BY LANCE PIERCE Keeping heritage hip A fth-generation Moscot designs Instagram-worthy eyeglasses for his family’s 103-year-old business ack Moscot never liked eyeballs much. at Lemtosh, but its contemporary line has opened the com- wouldn’t have been a problem in almost any pany to a new, younger clientele. And Moscot’s familiarity ZACK MOSCOT other family. But for ve generations, the with Insta gram has helped the company push deeper into Moscots have owned and operated a multi- digital branding and online sales. AGE 27 Zmillion-dollar eponymous eyewear company that now has As chief design ocer, he also has struck partnerships outposts in cities worldwide. that get fashionistas to open their wallets, including a BORN Manhasset, Long Island His father, Harvey, CEO of the business, is an optom- recent collaboration with his favorite sneaker maker, Com- RESIDES Midtown East etrist. His grandfather was an optician. Pro- mon Projects, to create a co-branded pair of EDUCATION Bachelor’s in viding precise optical prescriptions and sleek shades. “ ey’re the sneaker version of industrial and product design, My father University of Michigan treating shoppers like patients have long been “ our glasses,” he said. key aspects of the brand’s customer experi- understood Another partner, Canadian apparel com- STYLE INSPIRATION Moscot spent a semester at DIS, the ence—as well as a di erentiator amid a grow- pany Wings and Horns, created a line of there was Danish institute for study abroad, in ing eld of stylish eyewear competitors. a value to shirts at his behest that has a pocket spe- Copenhagen. “We’re a global brand, Zack Moscot took a di erent approach. At cially designed to hold a pair of foldable and understanding fashion and the University of Michigan, he studied indus- my creative Moscot specs. product through the lens of different trial design. Since joining the company six energy” Growing up in Jericho on Long Island, cultures is so important.” years ago, he has begun cra ing new styles for Moscot spent weekends and summers work- DRIVING RANGE Outside of the brand, as well as subtly tweaking some of ing in the family’s Lower East Side agship glasses, he calls golf his “ultimate passion.” He and his father generally the classic frames that made it famous. and knew early on he wanted to join the business. He said hit the greens weekly, talking for “You can change the lens material or the wire core in a his father always supported his interest in the creative hours about business as they pair of clear frames and have a whole new design,” he said. rather than the clinical side of the enterprise. play. “When you work with your “It’s about complementing what’s there and making sure I “My grandfather told my father, ‘If you don’t become an dad, business and life become one and the same. When you don’t lose our integrity and heritage.” eye doctor, we might not be able to stay in business,’ ” he go home, you nd you’re always e brand, with four locations in the city, is best known said. “My father was a little more lenient. He understood talking about work.” BUCK ENNIS for its collection of midcentury modern frames, such as the there was a value to my creative energy.” — DANIEL GEIGER 28 | CRAIN’S NEW YORK BUSINESS | APRIL 23, 2018 P028_CN_20180423.indd 28 4/20/18 11:47 AM SNAPS A century of service Kips Bay Boys & Girls Club held its annual President’s Dinner April 9 to celebrate the organization’s 46th annual Decorator Show House and 100 years of providing services to kids. e Kips Bay Boys & Girls Club troupe performed “Immigrants (We Get the Job Done)” from e Hamilton Mixtape at the event, which was spon- sored by Kohler, Hickory Chair and Benjamin Moore. Architect and interior designer David Easton, who received the lifetime achievement award, with his partner, artist James Steinmeyer, during the event at Cipriani 42nd Street. Interior designers Bunny Williams, Show House chair, and Jamie Drake, Show House vice chair, with Laura Kohler, senior vice president at Kohler. e event raised $1 million to help fund a er-school programs for 10,000 young people in the Bronx. Giving at the college level Celebrating LGBTQ achievements e Point Foundation, which supports education and leadership potential for lesbian, gay, bisexual, transgender and queer students, held its annual gala April 9 at the Plaza Hotel. Founda- tion Executive Director and CEO Jorge Valencia and radio personal- ity Valerie Smaldone helped raise $400,000 for scholarships and mentor- Fordham University held its 17th annual Founder’s Award dinner March 19 at Cipriani ing programs. Wall Street. e event raised $2.2 million for undergraduate scholarships and nancial aid. Honoree William Loschert, retired chairman of ACE Global Markets, is anked by George Maher, founder and managing director of Maher & Co., and Anne-Marie Harvey, director of student recruitment at University College, Dublin. Honorees John Costantino, managing general partner of NGN Capital, and philanthro- CNN news anchor Don Lemon pist Barbara Costantino with and journalist Tamron Hall Matthew Diller, dean of Ford- were among the 400 guests ham School of Law, were among entertained by singer and actor the 1,000 alumni and friends in Jussie Smollett of Fox’s Empire. attendance. “ e proudest day of my parents’ lives was the day they attended my graduation at Fordham Law School,” John Costantino said in his speech. ,DIA DIPASUPIL/GETTY, CHRIS TAGGART ,DIA DIPASUPIL/GETTY, BFA SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL [email protected]. APRIL 23, 2018 | CRAIN’S NEW YORK BUSINESS | 29 P029_CN_20180423.indd 29 4/20/18 11:48 AM FOR THE RECORD* NEW IN TOWN city-based restaurant seats ■ AmerisourceBergen for Chapter 11 bankruptcy Auto Group. e tenant did square feet at 3 World up to 140 diners and spans (ABC-N) protection March 29. e not have a broker. Trade Center. e stock ■ Bene tfocus more than 12,000 square Dale Danilewitz, executive ling cites estimated assets exchange plans to move 135 Madison Ave. feet and 5 stories. vice president and chief in- and liabilities of $100,001 ■ Planet Fitness inked a from 4 World Trade Center e Charleston, S.C.–based formation o cer, sold 3,121 to $500,000. e creditor deal for 16,500 square feet by the end of the year. e bene ts-management so - ■ Mohan’s Tattoo Inn shares of common stock for with the largest unsecured at 107-02 Queens Blvd., asking rent for the 10-year ware company has opened a 309 14th St. $86.10 per share April 2. claim is Flagstar Bank, Forest Hills. e gym chain deal was in the $80s per Midtown o ce. Nepali tattoo artist Mohan e transaction was worth owed $389,000. was represented by Crown square foot. CBRE repre- Gurung closed his Jackson $268,718. He no longer Retail Services. It was sented the tenant. e land- ■ Nordstrom Heights tattoo shop and has holds any shares. unclear if the landlord, DE lord, Silverstein Properties, 235 W. 57th St. reopened in the East Village. REAL ESTATE Boulevard, had a broker. was represented in-house e department store and by CBRE. opened its rst men’s store BANKRUPTCIES RETAIL ■ MedMen agreed to take in Midtown. It has three STOCK TRANSACTIONS ■ e Glasshouses signed 10,000 square feet at 433 ■ Media iQ Digital tripled oors’ worth of men’s cloth- ■ MM Capital NY Owner a 30-year lease for 75,000 Fifth Ave. Newmark Knight its o ce space with a ing, shoes, accessories and ■ Estée Lauder Cos. (EL-N) 317 W. 82nd St., Apt 2B square feet at 660 12th Frank represented the 23,396-square-foot lease personal-care products. Gregory Polcer, executive e brokerage-services rm Ave. e events company tenant, a medical- marijuana at 261 Fifth Ave. e rm vice president of global led for Chapter 11 bank- plans to open its second re- dispensary. It was not plans to move from 853 ■ The Inside supply chain, sold 40,797 ruptcy protection March ception hall, in Hell’s Kitch- known whether the owner, Broadway. e landlord, 86 Walker St. shares of common stock for 27. e ling cites estimat- en, in fall 2019. e asking Ashkenazy Acquisition Feil Organization, was e web-based interior $150 per share March 29. ed assets and liabilities of rent was in the $80s per Corp., had a broker. represented in-house. JLL design brand that sells cus- e transaction was worth $10,000,001 to $50 million. square foot. J.R. Cummings brokered for the tenant. e tomizable furniture opened $6,119,550. He now holds e creditors with the larg- Real Estate Co. brokered COMMERCIAL asking rent over 10 years a showroom and cocktail 69,909 shares. est unsecured claims are for the landlord, Bay Ridge ■ IEX agreed to take 45,000 was $85 per square foot. ■ lounge in TriBeCa. 141 Chrystie Street Corp., ■ L3 Technologies (LLL-N) owed $10,900,000; Paul Michael Strianese, chairman Popkin, owed $393,000; GET* YOUR NEWS ON THE RECORD MOVES AND EXPANSIONS of the board, sold 39,515 and Churchill Real Estate To submit company openings, moves or real estate deals, or to receive further information, email [email protected]. shares of common stock at Holdings, owed $60,000. ■ Chick- l-A prices ranging from $204.73 For the Record is a listing to help businesspeople in New York nd opportunities, potential 144 Fulton St. to $207.59 per share April 2. ■ Rapid Realty 1 Inc. new clients and updates on customers. Bankruptcy lings from the eastern and southern e world’s largest Chick- e transactions were worth 973 Schenectady Ave., districts of New York are listed alphabetically. Stock transactions are insider transactions at New York companies obtained from Thomson Reuters and listed by size. Real estate listings Brooklyn l-A opened in the Finan- $8,141,023. He now holds are in order of square footage. cial District. e chain’s h 136,561 shares. e real estate rm led Wednesday, May 2, 2018 Sheraton New York Investing in Times Square Hotel 8:00 a.m. – 8:30 a.m. Registration Digital Health Innovation and Networking Breakfast 8:30 a.m. – 12:00 p.m. Program Cost to Attend: Crain’s along with leaders in the industry will highlight ARMCHAIR $300 for individual ticket(s) the cutting-edge trends in digital health and provide DISCUSSION: $3,000 for table(s) of 10 guests a meeting ground for investors and start-ups and Oliver Kharraz, M.D. address the challenges facing both in this increasingly You must be pre-registered to attend this event. Founder & CEO No refunds permitted. important sector of the region’s economy. Zocdoc PANEL 1: The Perfect Match: How Digital PANEL 2: The New Wave: Where Is For more event information: Health Ventures Can Succeed in New York Health Tech Headed? Ashlee Schuppius 212-210-0739 [email protected] For sponsorship & exhibit opportunities: Gil Addo Steven Berman Jodi J. Akin Sundeep Bhan Irene Bar-Am CEO & Co Founder Director of Digital Health Innovation Angel Investor; Founder & Co-founder & CEO 212-210-0133 RubiconMD Montefi ore Medical Center CEO Hawthorne Effect Inc. Prognos [email protected] REGISTER TODAY »crainsnewyork.com /events-hc2018 James Patchett Katherine Ryder Thomas Thornton Jonathan Gordon Josh Wolfe « President & CEO Founder & CEO Senior Vice President Director Co-founder and Managing NYCEDC Maven Northwell Ventures NYP Ventures Partner, Lux Capital Platinum Sponsor: Silver Sponsor: 30 | CRAIN’S NEW YORK BUSINESS | APRIL 23, 2018 P030_CN_20180423.indd 30 4/19/2018 1:33:20 PM PHOTO FINISH Spring awakening lowering trees such as the Cor- nelian cherry dogwood that laid down this yellow blanket in Cen- tral Park near East 72nd Street Fare a welcome sign of spring for many New Yorkers. But for those who are susceptible to allergies, they can be an ominous sight. Allergy season has been getting progres- sively worse during the past few years, said Dr. Purvi Parikh, an allergist and immu- nologist at NYU Langone Health. “Due to climate change, carbon diox- ide has been going up in the atmosphere,” Parikh said. “As a result, plants are produc- ing stronger, more potent pollen.” So even though it has yet to feel very springlike, Parikh is already seeing patients su ering from allergy symptoms, including itchy eyes, stu y nose, fatigue, rashes and asthma attacks. And the rapid changes in weather aren’t helping. “Fluctuations in temperature can make you congested or make your eyes itch,” she said. “In one week we’ve had four seasons.” — CAROLINE LEWIS BUCK ENNIS APRIL 23, 2018 | CRAIN’S NEW YORK BUSINESS | 31 P031_CN_20180423.indd 31 4/20/18 6:58 PM CN018636.indd 1 4/13/18 4:15 PM