20141201-NEWS--0001-NAT-CCI-CN_-- 11/26/2014 4:05 PM Page 1 DEADLINE FOR 40 UNDER 40 NOMINATIONS... ...IS FRIDAY, DEC.5. NO EXTENSIONS. NO PHONE CALLS. NO MERCY. CRAIN’S® Go to crainsnewyork.com/40nominate NEW YORK BUSINESS to submit your candidate. VOL. XXX, NO. 48 WWW.CRAINSNEWYORK.COM DECEMBER 1-7, 2014 PRICE: $3.00 LEGAL PRAYER: Church of St. Vincent de Paul parishioners Olga Statz (a real estate attorney) and her mother, Cleomie Simon, have been battling their archdiocese’s closure order since 2007. IN THE BOROUGHS MANHATTAN AppealAppeal toto aa higherhigher powerpower buck ennis Roman Catholic Church’s highest legal authority, the Deus meus! Chelsea church, BY JOE ANUTA Apostolic Signatura, which will decide the fate of a Chelsea parish and the real estate developer keen to buy it. sitting on expensive real estate, In the spring of 2013, a lawsuit went from a small apart- At issue is the Archdiocese of New York’s effort to ment in Manhattan to Washington, D.C., where it was shutter the Church of St.Vincent de Paul at 123 W.23rd fights closure in a Vatican court. dispatched 4,500 miles via diplomatic pouch to the top St. and sell the nearly 150-year-old building. floor of a 16th-century palace in Rome. “We are, of course, hoping that the Signatura finds Now, does anybody speak Latin? There, translated into Latin, it sits in the halls of the See AUTHORITY on Page 16 GOTHAM GIGS Recession era’s deferred bonuses MAKES SCENTS Success smells a lot like paying off big for Wall Streeters lavender to self-styled ‘natural the legendarily ARE BANKS passed. The IOUs—grants of com- perfumer’ Julianne Zaleta P. 7 Stock IOUs translate massive year-end AT RISK YET pany stock that couldn’t be touched to hefty sums thanks cash bonuses. In AGAIN? P. 4 for years—are now worth huge sums came IOUs. IS WEALTH because bank share prices have to booming market TRICKLING 48 “People were soared in recent years.In the coming DOWN? P. 36 5 screaming bloody weeks, many of these deferred BY AARON ELSTEIN murder,” recalled bonuses will vest and result in vastly Alan Johnson of compensation con- larger paydays than if bankers or From the ashes of the financial cri- sultancy Johnson Associates. “They traders had been paid in cash. sis emerged a big change in how were yelling, ‘Pay me now!’ ” Consider Goldman Sachs. After Wall Streeters got paid. Out went It’s safe to say the tantrum has See WALL STREET on Page 36 NEWSPAPER 71486 01068 0 20141201-NEWS--0002-NAT-CCI-CN_-- 11/26/2014 4:07 PM Page 1 EDITOR’S NOTE A mighty wind FYICRAINSNEWYORK.COM I asked a reader last month for help devising my questions for Deputy Mayor Alicia Glen following her Pols hoping to hit jackpot keynote address at Crain’s Future of with Dem convention New York City conference on the new administration’s economic- rooklyn’s selection last week as a finalist development policies. “What to host the Democratic National economic-development policies?” Convention in 2016 delighted Mayor Glenn Coleman BBill de Blasio Charles Schumer the reader tartly asked. To be fair, and Sen. .The Ms. Glen’s top priority this first Brooklynites hosted a press conference-cum- year in office has been helping her boss fulfill his celebration to tout New York as the center of the campaign promise to create 80,000 units of afford- world and therefore the obvious choice: 73 nyc.gov able housing in the next 10 years. Now that a plan is Michelin-starred restaurants, the country’s most extensive public-transit system, beacon of rolling—3,563 new units financed! 76,437 to go!— freedom. Left unsaid was New York’s standing as the ATM of party fundraising. ¶ “J-O-B-S!” it’s time to speed up job creation so that more people Mr. Schumer said. “So many people will get jobs; so many people will benefit.” He said it takes can afford their rent. But City Hall’s thinking him only 15 minutes to get to downtown Brooklyn by car from midtown, “where all the hotels remains a work in progress, judging by the breezy are.” ¶ The other finalists, Philadelphia and Columbus, Ohio, have their advantages, too, and not just PowerPoint tour of the five boroughs’ emerging hotels close to their convention space. In the past 13 elections, the presidential candidate who has bright spots that Ms. Glen conducted for the audi- won Ohio has captured the White House. Dems may want to test their message in Columbus, ence. Much of the political boosterism for Brooklyn nicknamed Test Market, USA, for its perfect cross-section of American consumers. Republicans, tech startups and small business scale-ups that though, have laid claim to the state. Cleveland is where they’ll host their convention. ¶ might produce 50 jobs here or 100 jobs there seems Philadelphia, meanwhile, offers a middle ground—a large-ish city in a not-quite-reliable blue divorced from an economic reality: It is New York’s state—and plenty of color:The City of Brotherly Love, after all, is famous for having sports fans biggest companies and private institutions that hire whose anger rises to the felonious. ¶ Red-state contenders Phoenix and Birmingham, Ala., were so many of our city’s smaller companies to serve sent packing. Democratic National Committee Chairwoman Rep. Debbie Wasserman Schultz their business needs. It is our Fortune 500 headquar- thanked them for “showcasing their special communities.” A winner is expected to be announced ters that directly employ the hundreds of thousands early next year. —jeremy smerd of people who consume mom-and-pop’s goods and services, and indirectly employ at least a million FERGUSON FALLOUT. Thousands ceived a total of $150 million from protested in Manhattan, outraged trustee David Rockefeller and the HOORAY! more. You can’t have small business without big over a grand jury’s decision to not in- Stavros Niarchos Foundation for a CENTRAL PARK’S Lasker Rink, which business—not outside the shire, at least—and the dict a white police officer who fatally two-acre campus expansion. A plat- was slated to be closed all season, was to reopen Thanksgiving Day. biggest economic-development challenge facing all shot an African-American teen in form over the FDR Drive will support of New York City (beyond the failures of our school Ferguson, Mo. About 10 people were four new buildings.… ROCKEFELLERS arrested. … FALCONE LEAVES DIVEST. The company that manages system) is that our financial-services sector is shrink- HARBINGER. Hedge-fund billionaire the Rockefellers’ investments, Rocke- ing. The big banks are steadily moving their least- Philip Falcone stepped down as chair- feller & Co., will leave its longtime profitable support jobs outside our high-cost city. man and CEO of Harbinger Group. home at 30 Rockefeller Plaza—the Ms. Glen, a Goldman Sachs alum, didn’t disagree The 52-year-old was banned from the limestone tower it built in 1933—for securities industry but allowed to work 1 Rockefeller Plaza. … BUZZFEED when I noted during our Q&A session that it’s pos- as an officer and director of a public HUMMING. BuzzFeed, a Crain’s Fast OY VEY! sible that JPMorgan Chase could, in the not-too- company. He will get 50 company, reached LAGUARDIA is the most frustrating an exit package total- $100 million in rev- airport out of the 36 U.S. and Canadian distant future, have more corporate employees in ‘The second hubs, according to a Bloomberg ing more than $40 enue this year, the Businessweek survey. Texas than in New York. “There are headwinds,” she million from Harbin- quarter company announced. acknowledged, “we can’t fight against.” ger. … CITI’S UNRULY The news site also is ANALYSTS. Citigroup presented nearing 200 million was fined $15 million investors with unique visitors and THIS WEEK IN CRAIN’S for failing to supervise 750 million video and discipline its challenges’ views. The company -------------------------- equity research ana- —State Comptroller is reportedly valued at IN THE BOROUGHS 1 ap images lysts’interactions with Thomas DiNapoli, about $850 million. SMALL BUSINESS ------------------------------ 5 the bank’s clients.The downplaying the news of a … BUDGET BOON. forms. Currently, there are only five $2 billion loss for the state’s IN THE MARKETS----------------------------------5 Financial Industry The city projected answer options when asked about race Regulatory Authority $178 billion pension fund higher tax revenue or ethnicity. … CULTURE SHED GETS THE INSIDER ----------------------------------------------- 6 said some analysts in the last fiscal quarter and $1.1 billion less in LEADER. Alex Poots was named the BUSINESS PEOPLE ---------------------------7 hosted “idea dinners,” long-term debt in its head of the $360 million performing- where they gave stock tips that dif- November fiscal-plan update, but arts center that is rising on the far West OPINION------------------------------------------------------------- 8 fered from published reports, while budget watchers said the savings were Side. Mr. Poots will leave his posts as GREG DAVID ------------------------------------------------9 others helped investment-bank expected. … NEW CHECK-BOX FOR artistic director of the Manchester In- clients with road-show presentations RACE. The City Council introduced a ternational Festival and of the Park THE LIST ---------------------------------------------------------13 before an IPO. … ROCKEFELLER bill that would allow New Yorkers to Avenue Armory in September 2015. REPORT: HEALTH CARE REAL ESTATE-------------------------------------------16 INVESTS. Rockefeller University re- identify as more than one race on city —amanda fung Freelancers like Peter Wilk CLASSIFIEDS ----------------------------------------- are mulling their Obamacare 33 Year 2 options. P. 10 NEW YORK, NEW YORK ----------37 STORIES TO WATCH THIS WEEK vol.