20141201-NEWS--0001-NAT-CCI-CN_-- 11/26/2014 4:05 PM Page 1
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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. xxx, no. 48, december 1, 2014—Crain’s New York Business (ISSN 8756-789x) is published weekly,except for double issues the weeks of June 23,July 7,July 21,Aug.4,Aug.18 and Dec. 22, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Dec. 2: Council Dec. 2: Third Dec. 5: Crain’s Dec. 7–9: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, hearing on annual Giving unveils 100 Best Prince William and MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one Cablevision Tuesday; people are Places to Work his wife, Kate, visit year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved. franchise encouraged to rankings New York City agreement donate to charity
2 | Crain’s New York Business | December 1, 2014 20141201-NEWS--0003-NAT-CCI-CN_-- 11/25/2014 6:56 PM Page 1
Developers are betting it all on penthouses Sale of hyper-pricey YOUR MOJITO HERE: The units becomes make developer of a trio of penthouse apartments at the nearly or break for growing completed 551 W. 21st St. number of projects aims to sell them for a total of $125 million. BY DANIEL GEIGER
Developer Ben Shaoul has a simple way to describe the new penthouse he’s readying downtown at the for- mer Verizon headquarters at 140 West St.,a property he is converting to luxury condominiums. “Think football field,” said Mr. Shaoul, 37, who scrapped his initial plan to cut the uppermost floors into as many as three penthouses to in- stead combine them into a single super-luxe duplex with 30-foot ceil- ings, 360-degree views and a price tag that could top $100 million. “I have seen some exceptional apartments,” he said, “but I have never seen anything like this one.” Maybe so, but a growing number of his peers swear they have.The fact is that in recent months such boasts have become all too common among a gaggle of men now in the process of delivering a collection of pent- houses of unprecedented size, opu-
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December 1, 2014 | Crain’s New York Business | 3 20141201-NEWS--0004-NAT-CCI-CN_-- 11/26/2014 4:07 PM Page 1
STATS AND Apple Pay’s big beneficiary THE CITY
’TIS THE SEASON: Holiday spending Country’s largest across the nation is projected to climb HOME TEAM: CEO 13% this year, but New Yorkers will credit-card processor Frank Bisignano spend a little less on gifts in 2014 recruited New York hopes it can turn executives to prepare than in recent years. Still, the city is First Data to take getting into the spirit. Seasonal hiring its fortunes around advantage of new and spending are major drivers of the payment technology. local economy. BY MATTHEW FLAMM
When Frank Bisignano took over troubled First Data Corp. 18 months ago, he wanted to signal a change at the company, which han- dles nearly half of the nation’s 77 bil- lion annual credit-card transactions. One thing he did was to make New York City the base for its turn- around.
The shift of focus from Atlanta, ap images the firm’s longtime headquarters, has PROJECTED paid off. Mr. $1,242average amount Bisignano, a NYC households will spend on gifts this $3.5B Brooklyn-born holiday season, down 2% from last year INVESTMENT in and -raised finan- June by private- cial-services vet- NUMBER of signed equity firm KKR, eran and former books by major keeping First 500K JPMorgan Chase authors for sale at Barnes & Noble Data’s turnaround locations nationwide on Black Friday. on track co-chief operat- ing officer, has The bookseller claims it’s the largest- used his perch at ever offering of its kind First Data’s new Liberty Street offices APPRAISED to recruit some 200 executives, many value of the Saks Fifth Avenue from the top ranks of his former em- building$3.7B in Manhattan, more than the ployers, JPMorgan and Citi. $2.9 billion Hudson’s Bay Co. paid for That talent upgrade was key to the entire Saks chain last year private-equity firm KKR’s decision to add to its bet on First Data with a HEIGHT, in feet, of the world’s $3.5 billion investment in June,even largest Hanukkah menorah, to though the debt-laden company has 32be lit at Manhattan’s Grand Army Plaza. lost money ever since KKR bought it It weighs 4,000 pounds for nearly $30 billion in 2007. First Data still has 1,500 em- SEASONAL workers to ployees in Atlanta and 24,000 3,100 be hired by shipping worldwide, but its new leadership giant UPS in NYC in 2014, out of here and new money have helped 95,000 nationwide Mr. Bisignano recast the payment- PORTION See FIRST DATA on Page 36 buck ennis of New York state residents who say 30%they believe in Santa Claus
TOTAL AMOUNT New York state Links between top banks pose risks residents plan to spend on gifts this holiday season: Interconnectedness that banks extend to each other and unprecedented “quantitative eas- Financial regulators worldwide $1,000+ $0-$299 the fact that they hold similar assets. ing” program pumped hundreds of required banks to add to their fi- 23% endures despite “If everyone ends up with the billions of dollars into the markets nancial cushions in case of an un- 31% same assets, that makes the system during the past six years in an at- foreseen crisis. In October, howev- regulators’ efforts much more fragile,” Mr. Steffen ex- tempt to boost economic activity. er, the International Monetary plained. Those injections also artificially Fund flatly stated that such 14% BY RONALD FINK There are two especially com- raised stock and bond prices. padding had failed to eliminate the $600- $999 11% mon and potentially dangerous ex- risk of another meltdown. On the 11% 11% $300- Four years after President Barack amples today of bank interconnect- contrary, the fund argued that sys- $399 Obama signed the Dodd-Frank edness: The first is short-term Concerns about temic risk had reached the point $500-$599 $400-$499 Act into law in an effort to prevent loans, known as repurchase agree- where it threatens to bring about Portions total 101% because of rounding. another Great Recession, concerns ments, which totaled $3.7 trillion another Great another financial crisis “if left un- are again rising.Many of them cen- in the U.S.as of the first quarter,ac- addressed.” MACY’S has steadily increased its ter on a primary contributor to the cording to the latest Federal Re- Recession are Mr. Allen said asset prices re- seasonal hiring: crash of 2008: the linkages among serve data. Although that figure flect the Federal Reserve’s efforts to financial institutions. was down from $5.2 trillion at its rising again inject liquidity into the market, not 100,000 Despite the new Dodd-Frank peak in the first quarter of 2008, it’s the strength of the economy.When 86,000 rules, a growing number of experts still high by historical standards— the Fed withdraws that liquidity, 75,000 80,000 83,000 note that banks’ interconnected- and it troubles economists. the market could tank. At that 50,000 ness remains dangerously strong. It The second example is deriva- point, “things can go wrong very is “the issue,” said Sascha Steffen, tives contracts, the value of which quickly,” he said. 25,000 an associate professor at Berlin’s rose to $710 trillion worldwide at “If prices correct, we will have In the crash of 2008, for exam- 0 European School of Management the end of last year, from $516 tril- big financial-stability problems,” ple, many cash-strapped institu- 2012 2013 2014 and Technology. lion in June 2007. said Franklin Allen, professor of fi- tions had to sell their soundest as- Sources: Deloitte, Barnes & Noble, Bloomberg News, The collapse of Bear Stearns, Efforts by a number of central nance and economics at Imperial sets to generate needed funds. But nycgo.com, Crain’s research, Siena Research Lehman Brothers and AIG banks to stimulate their countries’ College in London.“It’s not clear to repeated towering waves of such Institute, Challenger Gray & Christmas Inc. demonstrated how one institution’s economies may have also height- me that [central banks] have sales battered down the prices of ADDICTED TO NUMBERS? GET A failure can threaten the existence of ened the risks of another global thought seriously about dealing those high-quality assets, which in DAILY DOSE AT @STATSANDTHECITY others. The main culprit: the credit meltdown. The Federal Reserve’s with inflated asset prices.” See BANKS on Page 35
4 | Crain’s New York Business | December 1, 2014 20141201-NEWS--0005-NAT-CCI-CN_-- 11/26/2014 11:52 AM Page 1
NO SUGARCOATING: TALENT POOL: Schools Chocolatier Jacques Chancellor Carmen Fariña IN THE Torres believes “you said more high-school pay a price” to build a graduates must be business in New York. prepared for technical careers. MARKETS by Aaron Elstein No bull: Analysts loaded for bear
ust as spring is when NEXT STEP: Andrew swallows return to Kimball, who runs Mission San Juan Capistrano Industry City in J Brooklyn, said New York in California, December is should invest in “broad when herds of Wall Street trends,” not specific companies. strategists produce their predictably bullish market HIGHER USE: forecasts Deputy Mayor and for the coming year. keynote speaker Yet what’s interesting about Alicia Glen plans to review zoning of the reports that are out so far is how muted warehouses used the optimism is for 2015. Strategists surveyed by only for storage. Bloomberg News forecast only a 5% advance for the Standard & Poor’s 500, or less than half this buck ennis year’s gain through November.The worriers include SMALL BUSINESS Goldman Sachs strategist David Kostin, who predicts the S&P next year will rise just 1.6% over current levels.
Then there istockphoto NY’s new manufacturing are outright bears, like economist David Levy of the Jerome Levy Forecasting puts focus on proximity Center in Mount Kisco, N.Y. He warned in a report last Executives at Crain’s no plans to leave New York. skills, and said her department is week that Europe, China and the Shapeways’ Mr. Weijmarshausen committed to such policies. confab said city must echoed that sentiment,adding that he emerging-market economies “have been support creation of sees sustainable growth in Gotham. How to fuel growth growing much more slowly than business “I have no concerns about staying Mr. Kimball, who previously executives were projecting during the past industrial innovation in New York,” he said. “We’ve been headed the city-owned Brooklyn decade as they invested overaggressively growing our team by 30% to 40% Navy Yard, was questioned about every year, and we now have 100 the role of government in develop- in new capacity.” Mr. Levy believes BY THORNTON MCENERY people.” ing private-sector businesses. there is a 65% chance of a global He said it helps that the compa- “Government engagement works downturn next year as the bill comes due. What do a real estate developer, a ny’s manufacturing in Long Island best when it identifies broad trends, 3-D printer, a chocolatier and a stu- City, Queens, doesn’t need much and it doesn’t work when investing in dio chief have in common? They all space. Mr. Weijmarshausen said individual small businesses,” he said. However it plays out, all the runs his own firm with $3.3 billion think that being around each other Shapeways is creating 80,000 3-D “The city should be investing in in- caution flags from the professional under management. is good for New York. printed products a month at its cur- frastructure to fuel growth industries pundits reflect how difficult it is to One group that shows no fear At the Crain’s Future of New rent 20,000-square-foot space. like manufacturing and tech.” stay bullish on U.S. stocks after when it comes to markets is Harvard York conference, held Nov. 20 in Astoria Studios’ Mr. Rosen- their long run-up. The case for a Business School’s newly minted crop of midtown Manhattan, Industry City bluth, on the other hand, believes bull market rests on the notion that M.B.A.s. It turns out that 30% of last Chief Executive Andrew Kimball, ‘Tech jobs government plays a key role. the U.S. economy will continue to spring’s HBS graduates have land- Shapeways CEO Peter Weijmar- “New York is costly,and film pro- grow despite persistent woes in Eu- ed jobs on Wall Street,up from 24% shausen, chocolatier Jacques Torres are growing duction is a mobile industry,” he rope and Japan, while China keeps a year ago. and Kaufman Astoria Studios CEO said,highlighting the power of New rolling even though its government That could spell trouble. Histo- Hal Rosenbluth took part in a pan- faster than any York state’s film tax credit. “You recently cut interest rates to give its ry suggests that it’s time to sell el to discuss the future of manufac- need to protect where you have a economy a boost. stocks any time 30% or more of the turing in the five boroughs. other sector’ skilled workforce and a strong infra- Perhaps the strongest remain- Harvard biz-school class head into All four executives agreed that structure. There’s a premium com- ing argument for U.S. stocks is that investment banking or private-eq- the city’s high costs are a constant panies are willing to pay to work pension funds and other institu- uity jobs, according to decades of burden, but the inherent density of here, but you need to figure out how tional investors, which have largely studies by former securities indus- New York is rife with possibility for high that premium is.” sat out the five-year bull market in try analyst Ray Soifer, HBS Class of those looking to capitalize on it. The job growth at Shapeways Not all the panelists had read the equities,will get over their fears and 1965. In 2007 and 2008, for in- “New York is a wonderful place goes against the popular narrative City Council’s latest proposal to re- follow those who’ve bought in. stance, 41% of Harvard M.B.A.s with so much business,” said Mr. that technology companies do not zone Industrial Business Zones by “One has to wonder when in- went to Wall Street. Torres, who owns and operates a boost employment like other sectors. adding different classifications and vestors will grow tired of being so But interest waned in 2009, small chain of chocolate shops in “I reject that notion,” said Mr. fostering diverse small-business scared,” observed renowned strate- when only 29% went into the secu- Brooklyn and Manhattan.“There is Kimball, CEO of Industry City. growth.But they welcomed the idea gist Richard Bernstein in a recent re- rities business.That, of course, was a price you pay to get that business.” “Tech jobs are growing faster than of some new thinking. port. Mr. Bernstein is a former also the year that the current bull any other sector, and they are the “There’s no one-size-fits-all ap- Merrill Lynch strategist who now market started. Ⅲ Rent spikes best available path to the middle proach to growing industrial, and I Mr. Torres was referring to the class in New York City today.” think there is now recognition of high rents on both his retail and in- During an earlier interview at this,” Mr. Kimball said, addressing RETURN GENERATED so far dustrial locations He cited the fact the same event, Schools Chancellor the City Council’s proposal. “We this year, in dollar terms, by that the 12-year-old lease for his Carmen Fariña agreed. She praised need to manage the preservation of 34%the world’s best-performing large space on Hudson Street is the state’s Career and Technical Ed- existing industrial business against stock market: India. That market’s leaders include about to expire—and the new rent ucation program, which provides taking advantage of the boom hap- Bharat Petroleum (up 104%), automaker Maruti
will increase by 600%. Still, he has students with marketable trade pening in manufacturing.” Ⅲ istockphoto Suzuki India (86%) and Axis Bank (81%).
December 1, 2014 | Crain’s New York Business | 5 20141201-NEWS--0006-NAT-CCI-CN_-- 11/26/2014 4:08 PM Page 1
COMMISSIONER THE MARIA TORRES- SPRINGER’s talk of contracts or subsidies weigh candi- a new program’s dates. He promised to spend $100 INSIDER “teeth” worries million on middle-skill-level job some business by Andrew J. Hawkins training and $60 million to steer leaders. low-income people into training. Mr. de Blasio lamented that “we have $17 billion in purchasing pow- Mayor’s newest mandate questioned er, and … historically, have used it for so little effect.” usiness leaders are questioning Mayor Bill de Blasio’s Violators face penalties. “We are new policy compelling companies that contract with requiring them to participate in this program, and we want to also make
the city to consider applicants from government job newscom sure that it has teeth,” said Maria B Torres-Springer programs. “I don’t know that it’s legitimate to make job- , commissioner of the training participation a precedent for being awarded a city Mr. de Blasio unveiled the policy $17 billion on thousands of private city’s Small Business Services. contract,” said Denise Richardson, executive director of the Nov. 21 as part of an overhaul of the companies,he noted,adding that the But industry leaders say the policy city’s $500 million-a-year training new policy will allow job-training could conflict with companies’ hiring General Contractors Association of New York. “Those are programs, which the mayor called participants to “go to the front of the processes. “I’m surprised that every- legal issues that have to be looked at.” outdated. The city annually spends line” when companies that get city one is so laudatory without thinking through the implications of this,” Ms. Richardson said, referring to supportive quotes for the policy from industry and labor leaders in the mayor’s press release. Two sources said the administra- tion did not disclose the potential for penalties when briefing them. TOO MANY FORKS IN Another said the briefing docu- ments lacked details on compliance. Stuart Applebaum, president of the Retail, Wholesale and Department YOUR PIE? Store Union and an ally of the may- or, said the requirements will ensure that New Yorkers from across the economic spectrum benefit from the city’s purchasing power. A spokesman for the mayor said penalties were mentioned to sup- porters, and that firms seen as fail- ing to consider candidates as re- quired could lose their contracts. “The quality of our service and the New Yorkers we train will ulti- mately determine our success,” he said. “If we get that right, it’s diffi- cult to envision a case when an em- ployer would not eagerly take ad- vantage of what we’ll be providing.” The City Council’s Economic Development Committee will hold a hearing on the mayor’s training overhaul Dec. 11. Chairman Daniel Garodnick, a Manhattan Democrat, will explore whether the city should be using its leverage this way, a spokesman said. Former Mayor Michael Bloomberg built 17 job-training centers and in- creased the city’s annual job place- ments by 5,700%. But when asked by reporters if the previous administration missed a chance to prepare New Yorkers for better jobs,Mr.de Blasio said,“Yes.” Mr. Bloomberg’s former aides fired back. “Mayor Mike Bloom- berg increased job placements from 500 to almost 30,000 a year, all across the pay spectrum,and it led to the highest-ever number of New Yorkers with jobs,” said spokesman CALL US TODAY! Stu Loeser.“We wish Mayor de Bla- sio well in building on our historic achievements.” Ⅲ QUOTE OF THE WEEK: ‘I hope he Find out how you can join the will soon be a Lee & Associates team. professional Joel Herskowitz resident of Rikers 212.776.1222 Island’ [email protected] —Police Commissioner Bill Bratton, lee-associatesnyc.com on the “professional agitator” who splashed him with fake blood
6 | Crain’s New York Business | December 1, 2014 20141201-NEWS--0007-NAT-CCI-CN_-- 11/25/2014 6:57 PM Page 1
BUSINESS 44% Portion of NYC private wages earned by the finance industry in 1Q 2014, up from 41% in ’13 PEOPLE Source: NYS Department of Labor
NATURAL TALENT: Julianne Zaleta prefers EXECUTIVE MOVES organic extracts for her homemade perfumes. Carver Federal Savings Bank: Michael T. Pugh,43, was named chief executive at the bank, effective Jan. 1. He is currently president and chief operating officer. Blondel A. Pinnock, 46, was promoted to chief lending officer and senior vice president. She was previously president of Carver Community Development. Takisia Whites, 40, was promoted to president of Carver Community Development. She continues as nonprofit team leader in the lending department. New York Life: Kelli Parsons, 45, joined the mutual life insurance company as chief corporate communications and marketing officer. She was previously senior vice president and chief communications officer for the Federal National Mortgage Association (Fannie Mae). ICL: Carmen Collado, 50, joined the human-services agency as chief networking and relationship officer. She was previously chief government and community- relations officer at the Jewish Board of Family and Children’s Services. Mancini Duffy: Christian Giordano,41, was promoted to president at the architecture and interior-design firm.
buck ennis He was previously principal and director of architecture. GOTHAM GIGS Strategic Funding Source Inc.: Ben Johnston, 38, joined the provider of direct financing to small and midsize businesses as head of strategy and corporate development. He was previously a principal at Pine Brook. A career that makes scents Sid Lee New York: Dan Chandler,32, was promoted to co-executive creative director at the creative agency. He was previously creative director. Julianne Zaleta has a nose for the perfume biz Dan Brooks, 40, was promoted to co-executive creative director. He was When Julianne Zaleta gets a cold, her business floral designer and massage therapist, then made previously creative director. ‘I’m more Rodale Inc.: Melanie suffers. Ms. Zaleta, a self-described natural the leap from massage oil and aromatherapy to Hansche, 36, joined interested perfumer, spends her days sniffing scents like perfumery 15 years ago. ¶ “It’s a lot more creative the publishing company as Flora, her own mix of carnations and Mitti oil, or and fun, and better money,” she said. “You can executive director of in wood creating Viper Oil, a cure-all remedy, with the only sell a bottle of massage oil for so much food content and strategy, a newly smoke, herbs from her local community garden. ¶ She money—there’s not a lot of markup for a lot of created position. only uses plant-based scents and runs a perfume labor.” ¶ Ms. Zaleta, who leads workshops at the She was previously vanilla or atelier, Herbal Alchemy Apothecary, out of her Brooklyn Botanic Garden and 92nd Street Y, is managing editor at Australia’s Donna Hay Magazine. cinnamon Park Slope home, charging $190 for 90-minute seeing demand in Brooklyn for “slow perfume”— Cushman & Wakefield: Joseph Caridi, personal consultations that include a quarter- a takeoff on “slow food” that is more time- 48, joined the real estate firm as senior managing director of the tristate —things ounce of perfume. ¶ “I don’t go to department intensive than using man-made chemicals. For region. He was previously tristate stores—I don’t want to put my nose into those example, if she runs out of hand-picked lavender region chief operating officer at from real Colliers International. synthetic bottles and breathe those chemicals,” after the growing season, she has to wait until the Madison Square Garden Co.: Andrew life’ Ms. Zaleta, 54, said. “I’m more interested in wood next year to pick more, and the new batch will Lustgarten, 37, joined the sports and smoke, vanilla or cinnamon—things from real smell different depending on how much rain has entertainment company as executive vice president of corporate life.” ¶ Growing up in Detroit, Ms. Zaleta spent fallen. ¶ “It’s very much like grapes and wine,” she development and strategy. He was her days foraging for plants, then smashing said. “You can get a different oil from the same previously senior vice president of global strategy for the National lavender into soap and floating flowers in water field year after year, which makes my job that Basketball Association. jars.Though a political-science major, she was a much more difficult.” —adrianne pasquarelli —nazish dholakia
December 1, 2014 | Crain’s New York Business | 7 20141201-NEWS--0008-NAT-CCI-CN_-- 11/26/2014 11:53 AM Page 1
OPINION CRAIN’S NEW YORK BUSINESS
For a fairer, friendlier city editor in chief Rance Crain publisher, vp Jill R. Kaplan he city’s business-improvement districts bathroom breaks. Letter grades are for the birds, apparently. EDITORIAL editor Glenn Coleman must be in pretty good shape to be Meanwhile, surveys show nearly half of all Times Square managing editor Jeremy Smerd complaining about food carts and workers have had negative experiences with costumed deputy managing editors Valerie Block, Erik Ipsen costumed characters. But although these characters. But tourists take the brunt of their bad behavior. assistant managing editors Barbara Benson, problems pale in comparison to the crime The anonymity afforded by furry masks emboldens the Erik Engquist senior news producer Amanda Fung and grime of decades past, it doesn’t mean entrepreneurs within to hassle and intimidate visitors into contributing editor Elaine Pofeldt columnists Greg David, Steve Hindy, Alair Townsend they should be ignored. giving $5-per-creature tips, while women endure catcalls senior reporters Theresa Agovino, Food vendors appear to have “cart” blanche, so to speak, to and even groping. A simple badge—say,“Elmo No. 6”— Aaron Elstein, Lisa Fickenscher, Matthew Flamm, Daniel Geiger, Adrianne Pasquarelli set up anything, anywhere. Some of their contraptions are matchable to the bearer’s real identity by the Department of reporters Joe Anuta, Chris Bragg, T Andrew J. Hawkins, Irina Ivanova, tall and garish enough to be seen blocks away—often Consumer Affairs would suffice to curb costumed Jonathan LaMantia, Thornton McEnery obscuring rent-paying retailers from view. Frankfurter sellers characters’ excesses and safeguard the city’s booming tourism reporter/videographer Ken M. Christensen news producer Emily Laermer with their gas-powered generators hog up busy sidewalks, industry. web reporter/producer Nazish Dholakia causing pedestrian bottlenecks that become a virtual Other elements of a art director Steven Krupinski Curb masked deputy art director Carolyn McClain blockade if even a few customers queue up. Stately buildings hastily written City staff photographer Buck Ennis copy desk chief Steve Noveck like the Metropolitan Museum of Art are marred by an characters and Council bill, including copy editor Thaddeus Rutkowski impassable line of vendors interfering with the midblock- fingerprinting and a data editor Suzanne Panara end vendors’ researchers Jessica Kramer, Nicholas Wells crossing rights New Yorkers hold dear. $175 license fee, are intern Gemma Follari The carts’ operators may make peanuts, but their owners ‘cart’ blanche unnecessary. Its author, ADVERTISING can afford to adorn our streets with something more Bronx Councilman advertising director Joanna Harp sales manager Irene Bar-Am attractive than sign-clad eyesores.The city’s successful Andy King, should senior account managers Jill Bottomley Kunkes, Courtney McCombs, standardization of newsstands could be a model for food- have consulted with Rob Pierce cart modernization. And the Department of Transportation Times Square business account managers Zita Doktor, Stuart Smilowitz sales coordinator LeAnn Richardson should make vendors leave room for foot traffic, as it does groups and knowledgeable council representatives rather credit Todd J. Masura (313-446-6097) restaurants with sidewalk cafés. than rushing to become a superhero himself. CUSTOM CONTENT, EVENTS AND PRODUCTION Equality—the mantra of Mayor Bill de Blasio—should A little common-sense regulation of food vendors and director of custom content Trish Henry director of audience & content also prevail at his Health Department.The agency polices masked Muppet imitators would go a long way toward partnership development Michael O’Connor director of conferences & events food safety at restaurants in sometimes draconian fashion, improving the experience of tourists and New Yorkers while Courtney Williams yet pigeons peck unabated at carts’ grills during operators’ protecting the city’s brick-and-mortar businesses. events coordinator Adrienne Yee events coordinator & scheduler Alexis Sinclair reprint account executive Alicia Samuel production and pre-press director CRAIN’S ONLINE POLL COMMENTS Simone Pryce ONLINE AND INTERACTIVE SERVICES general manager Rosemary Maggiore TO SUBSCRIBE: Unwelcome wagon For print and digital subscriptions or customer service, e-mail [email protected] or call 877-824-9379 (in the U.S. and Canada) or VENDORS OUT OF HAND but it’s an important 313-446-0450 (all other locations). $3.00 a copy for point. Food carts have the print edition; or $99.95 one year, $179.95 two years, for print subscriptions with digital access. I could not agree more with become the new www.crainsnewyork.com/subscribe Dan Biederman of the 34th squeegee men: a symbol TO ADVERTISE: ap images Street Partnership and Bryant of a city not in control Park Management Corp. even of its own streets. Contact Joanna Harp at [email protected] or call 212-210-0278. DO YOU SUPPORT concerning the food carts that —frank chaney www.crainsnewyork.com/advertise have grown into major Manhattan PRESIDENT OBAMA’S FOR INFORMATION ON OUR EVENTS: problems in every borough Contact Courtney Williams at IMMIGRATION ORDER? (“Hates, hates, hates food Thank you, thank you [email protected] or 212-210-0257. carts,” Nov. 17). As a native and thank you for www.crainsnewyork.com/events Yes. If Congress won’t act, the president New Yorker, I would sooner bringing this issue into TO CONTACT THE NEWSROOM: should, in order to keep millions of families lick the sidewalk than eat FOOD-CART FOE: the forefront. As the 685 Third Ave., New York, NY 10017-4024 and businesses intact. anything from any cart on any BID chief Dan director of a small BID editorial phone: 212-210-0277 block. Keep up the good work Biederman in the Bronx, I am fax 212-210-0799 No. The action only further divides the country, Entire contents ©copyright 2014 Crain Communications Inc. and have these movable roach buck ennis constantly battling usurping Congress without providing a lasting All rights reserved. ®CityBusiness is a registered trademark solution. coaches removed from city vendors, many of of MCP Inc., used under license agreement. streets. can’t imagine any other world whom are rude and CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS Date of poll: Nov. 21 —maureen walthers city—such as Paris (the Louvre) disrespectful.Their 270 votes chairman Keith E. Crain or London (the British representative is so off-base in president Rance Crain During a recent visit to the Museum or its best and most his comments.That he is treasurer Mary Kay Crain Metropolitan Museum of Art, famous shopping streets)— choosing to ignore the real Cindi Crain my wife and I lamented how the allowing this to happen to its issues is very sad. I am an executive vp, operations William Morrow food carts have basically become premier cultural venue. African-American woman and executive vp, director of strategic operations Chris Crain 46% 54% a nearly impenetrable wall of I love a Sabrett’s on an immigrant, and I intensely executive vp, director of corporate Yes No tacky commercialism blocking occasion just as much as the dislike the vendors who litter operations K.C. Crain off the front of the museum. next guy, but there’s got to be and are disrespectful. Would he senior vp, group publisher David Klein The sidewalk all around the some kind of limit to all this. also call me racist? vp/production, manufacturing David Kamis chief financial officer Thomas Stevens entrance is grease-stained and The reaction I get when I talk —marcia cameron chief information officer Anthony DiPonio littered with wrappers and about this sometimes makes Executive director, founder G.D. Crain Jr. (1885-1973) straws and bits of food. One me feel like a grumpy old man, Jerome-Gun Hill BID chairman Mrs. G.D. Crain Jr. (1911-1996) secretary Merrilee Crain (1942-2012) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.
8 | Crain’s New York Business | December 1, 2014 20141201-NEWS--0009-NAT-CCI-CN_-- 11/25/2014 6:56 PM Page 1
ERIC ADAMS Vest,a personal-finance tool with an online tool kit. One of the city’s largest employers is a fintech com- Don’t disrupt pany: Bloomberg LP. Some of fintech’s most exciting new entrants are building technolo- gies based on the digital currency the disruptors Bitcoin. Unfortunately, New York has not effectively dealt with Bit- coin’s regulatory challenges. As a ur city’s economy is rapidly changing.Jobs and in- result,companies have looked to set dustries of the 199 0s are giving way to new and up shop in Silicon Valley. New York—in this case the state exciting technologies.As a city,we must stay at the Department of Financial Serv- forefront of new industries for our economy’s sake ices—must be more welcoming by and to ensure that quality jobs are created here. pursuing common-sense regulation Tech has been one of the biggest local job creators. HR&A so the city can benefit from this ac- O tivity. A 2014 report by Accenture Advisors found that nearly 300,000 local jobs produce, facilitate and the Partnership Fund for New or are enabled by technology,45,000 of which were added in the York City found global investment in fintech ventures has tripled to past decade. Look at MakerBot, a lenge of urban life. nearly $3 billion and will grow to $8 3-D printer manufacturer based in New York needs to be just as billion in 2018. Brooklyn,which was sold in 2013 for forward-thinking to seize opportu- I am keenly aware of the need to more than $400 million. Three-D nities before us. Rather than apply welcome new industries and sup- printing is changing how we ap- byzantine, outdated regulatory port companies that drive econom- proach everything from construction frameworks to disruptive technolo- ic growth. Fostering a vibrant and to consumer goods and from medi- gies,we should create fair and sensi- diverse economy attracts young cine to motors. This kind of disrup- ble rules that allow entrepreneurs to minds, new ideas and thousands of tion creates a market, displacing an grow here. If not, we risk regulating jobs.We should welcome disruptive earlier way of doing things. ourselves out of valuable economic technologies. Innovation always That’s only the beginning. Our activity and tax revenue. carries risk, but we can address that smartphones carry apps for disrup- Take financial-services technol- through a regulatory framework tive technologies that are altering ogy. New York City has long been that doesn’t stifle growth. everyday life. Uber and Lyft have the global center of finance and the Our job is not to disrupt the dis- changed how we catch a crosstown global hub of fintech innovation. ruptors. Our regulatory approach ride, and FreshDirect how we buy Just as Nasdaq pioneered the elec- must be reprogrammed to embrace groceries. There’s a creative mind tronic stock market here in the and collaborate with innovators. somewhere in this city right now 1970s, software-focused fintech thinking up the next great technol- companies are seeking to make it big Eric Adams is the Brooklyn borough ogy to reimagine another daily chal- in the Big Apple, including Learn- president.
PAY CHECK: AVERAGE It pays to work WAGE BY BOROUGH 12-month Average increase weekly (3/31/13 in Manhattan Borough wage to 3/31/14) Manhattan $2,749 +12.0% he economic growth of the boroughs outside Queens $911 +1.3% Manhattan has been justly celebrated.Private-sec- Bronx $811 +2.2% tor jobs increased by 11% in Brooklyn, the Bronx, Staten Island $802 +1.8% Queens and Staten Island during the recovery, Brooklyn $760 +0.8% while Manhattan saw a mere 4% gain, noted a re- cent report from the Federal Reserve Board of New York. WEEKLY WAGES FOR HEALTH T AND EDUCATION JOBS That’s great news, but anyone who wants to make real mon- ey in New York needs to work in Manhattan, as another recent Manhattan $1,206 Bronx $914 report showed, this one from the U.S. Bureau of Labor Statistics. Staten Island $896 The headline behind the BLS Queens $765 report was impressive on its own: The average weekly wage in Man- Brooklyn $737 hattan jumped 12% in the 12 months ended March 31, driven by WEEKLY WAGES a rebound in financial services.That FOR TECH JOBS was the second-best performance $2,682 among the 300-plus counties in the Manhattan country with more than 75,000 jobs. Brooklyn $1,520 It was also the highest average wage Queens $1,430 of any of the counties, even better than Silicon Valley hub Santa Clara GREG DAVID Staten Island $1,326 County. Bronx n/a None of the other boroughs in n/a-Not applicable New York even matched the nation- even out pay disparities across the Source: U.S Bureau of Labor Statistics al 3%-plus increase in wages during city. Yet wages in these sectors are the same period. more than twice as high in Manhat- The advantages of working in tan as elsewhere. and design—are 76% higher in Manhattan go far beyond finance. It is the same in tech, despite all Manhattan than in Brooklyn. Consider health care and education the hype for the Brooklyn boomlet. The bottom line: Manhattan is a jobs. Union contracts and reliance The average wages in the techiest of long way from losing its status as the on government programs should tech industries—computer systems driver of the city’s economy. 20141201-NEWS--0010-NAT-CCI-CN_-- 11/25/2014 6:58 PM Page 1
HEALTH CARE INSIDE The List New York City’s largest health insurers PAGE 13
‘We’ve had to step up our game a little bit’ REPORT —Seth Diamond, chief operating officer, MetroPlus, Page 14 Docs and insurers spar over IN THE MARKET: Peter bills Wilk must search for a new health plan. New law takes effect soon, but rules are still missing
BY JONATHAN LAMANTIA
Surprise medical bills have long been a battleground issue for An- drew Cuomo,both before and af- ter he became governor. This year’s budget includes consumer protections against surprise bills from out-of-network providers. The new law takes effect in April. But four months before im- plementation, the law still is a work in progress. Two of the health care industry’s most influ- ential players—physicians and insurers—disagree on final rules, which have yet to be issued by state insurance regulators. The state Department of Financial Services declined to comment for this story. Providers and insurers are still exerting influence over how the new law will be implemented, with concerns over who has re- sponsibility to disclose what providers charge, and how to benchmark reasonable fees. Fighting among providers and insurers has derailed similar leg- islation in Maryland and Col- orado, said Jack Hoadley, a re-
buck ennis search professor at Georgetown University’s Health Policy Insti- tute. Policy experts hope New York won’t be next. “New York has a chance to try something and make it work, and that really hasn’t happened be- Obamacare, round two fore,” said Mr. Hoadley. The challenge with out-of- Insurers compete celed—and that his options on the INSURED tion will be fierce for specific popula- network fee legislation,he added, state insurance exchange exclude his tions—particularly young, healthy “is to make sure that you’re not for health reform’s specialists. Such is the experience of Projected number of private New Yorkers. left with either the provider or the New Yorkers navigating year two of insurance plans bought in “It’s about the quality of [con- insurance company completely stragglers and Obamacare. NYS through Obamacare. sumer] acquisition,” said Matt Hen- holding the bag.” New York was one of the success 720,000 ry, vice president of health care for Pressure for a law in New York comparison shoppers stories of the Affordable Care Act Audience Partners, a data-driven intensified in 2012 after the state rollout. The state signed up 1 million marketing firm that counts several in- Department of Financial Serv- BY IRINA IVANOVA people for private insurance or Med- surers as clients. “To make this whole ices issued a report that examined icaid during its first year. Nationally, thing work financially, the ratio of the issues underlying some 2,000 370,000 A waitress buys health insurance and one in seven Obamacare enrollees people aged 18 to 34 in an insurance annual complaints about medical finds a much better deal than the cov- were New Yorkers who bought plans plan needs to hit 37.5%,”he said.That billing. erage at her former $70,000-a-year on the New York State of Health, the ratio was 31% last year in New York, The out-of-network con- teaching job. A marketing consultant state’s exchange. better than the national average but sumer protection law, passed last who’s been self-employed for a decade For insurers,year one will be tough still below target. March, holds patients harmless discovers his health plan was can- to beat. In the second year, competi- 2014 2015 See OBAMACARE on Page 14 See BILLS on Page 12
10 | Crain’s New York Business | December 1, 2014 One change can change everything Change is happening in big ways and small. Middle market companies are searching for the next disruptive innovations, looking to cloud-based solutions, eyeing foreign markets, considering M&A transactions. At Deloitte Growth Enterprise Services, we’re right there with you. Providing knowledge, insight, and services tailored to the changes you see in the world. And your company.
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REPORT HEALTH CARE
WHAT THE NEW OUT-OF-NETWORK LAW DOES Law tackles surprise bills ● Protects consumers from surprise medical bills ● Requires new disclosures from insurers, hospitals and doctors Continued from Page 10 agree about who should disclose in- ward,” he said. in emergency situations when they formation about networks to pa- Back when Mr.Cuomo was New ● Simplifies the online process for patients to can’t have a say in which providers tients. Doctors claim that it is diffi- York’s attorney general, he brought submit out-of-network claims treat them. It also applies to out-of- cult to keep track of changes in a lawsuit against UnitedHealth ● Sets benchmark rates for out-of-network reimbursements network specialists,such as anesthe- health plans’ networks. Insurers as- Group that led to the creation of siologists or radiologists, who pro- sert that physicians are in a much Fair Health, a database designed to ● Creates an independent dispute-resolution process
vide care without prior consent from better position to share important calculate “usual, customary and rea- Source: Department of Financial Services istockphoto patients. disclosures with patients. sonable” payments to doctors and The law requires disclosures New York’s insurance industry is hospitals for out-of-network care. from physicians, hospitals and But insurers weren’t compelled to rate, wouldn’t be in business.” and the arbitration vendor has not health plans to better inform pa- benchmark against Fair Health data been announced. tients about when they are covered, ‘There are when paying claims for non- Going to arbitration Dr. Kleinman said the only way how much they should expect to be network treatment. Insurers hope the new law final- doctors and health plans will know if charged and what costs an insurer a lot of open The 2012 report by state insur- ly reins in the small number of spe- this new dispute-resolution process is will reimburse. Additionally, health ance regulators found that insurers cialists who don’t belong to any in- working is if both sides turn to IDRE plans must update enrollees within unresolved were moving away from basing their surance networks and routinely less often.That is because the arbitra- 15 days if they add or remove partic- reimbursements on the “usual and price-gouge patients for out-of- tor decides whether the appropriate ipating physicians, or if physicians issues’ customary rate” in a geographic network care, HPA’s Mr. Macielak fee is the doctor’s charge or the insur- change hospital affiliations. area. Instead, they were moving to a said. er’s reimbursement. So in theory, benchmark based on Medicare, Under the new law, disagree- health plans that are stingy with rates Disclosure dance which pays providers less than com- ments over fees will be decided by an and physicians who overcharge will But coordinating a delicate dance mercial insurance.That shift has led independent dispute-resolution en- self-correct if they continually lose among providers and insurers— to more “balance billing” from tity, or IDRE, that will rule on dif- disputes, Dr. Kleinman said. through rules that specify exactly pushing for tweaks to the new legis- providers—surprise medical bills ferences between a physician’s With a law that has so many how each player will give patients ac- lation so that it requires doctors to that can leave patients on the hook charge and a health plan’s reim- moving parts, implementation curate, updated information—will provide readily available fee infor- for thousands of dollars. bursement. Patients are kept out of could be tricky. The health care in- be a challenge, said James Fouassier, mation, and not just on request, ac- “Medicare reimbursement is so the process. dustry is hoping for guidance from associate director of managed care at cording to Paul Macielak, president grossly below what the going rate Arbitration will streamline dis- DFS well in advance of the law’s Stony Brook University Hospital. and chief executive of the New York is—it’s below what the going rate pute resolution, confining it to 30 April 1 effective date. “Having conflicts among the in- Health Plan Association. was 25 years ago,” complained Dr. days, said Douglas Bohn, a partner “There are a lot of open un- formation is almost as bad as not “The affirmative obligation to Andrew Kleinman, president of the in Cullen & Dykman, a Garden resolved issues,” said Mr. Macielak. having the information out there at disclose the doctor price—that’s Medical Society of the State of New City, L.I., law firm. “Not having regulations and guid- all,” he said. something we think really needs to York.“A lot of physicians,if they had But just how the IDRE process ance in place, the closer you get to Physicians and health plans dis- be changed in the law going for- to do everything at the Medicare will work hasn’t been hashed out, April 1,the more problematic it is.” Ⅲ
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12 | Crain’s New York Business | December 1, 2014 20141201-NEWS--0013-NAT-CCI-CN_-- 11/25/2014 6:58 PM Page 1
NEXT WEEK: THE NYC’s Largest Health Insurers Best Places to Work LIST Ranked by number of enrolled NYC members in New York City THE SCOOP TRENDS Signing up ACA enrollees by borough1 Medicaid CHP2 All QHPs3 he number of New Yorkers enrolled in plans through the 10 largest health 4.6% insurance companies grew by 6.3% in the past year, thanks largely to full im- Bronx 75.5% 19.9% plementation of the Affordable Care Act and the expansion of Medicaid. All 5.3% insurers who reported enrollment numbers for Crain’s list showed increases in Brooklyn 61.4% 33.3% their Medicaid rolls. 3.0% HealthPlus Amerigroup, a subsidiary of Wellpoint Inc. and No. 8 on Crain’s list, saw its rev- Manhattan 52.1% 44.9%
T istockphoto enue jump by 41.8%, totaling nearly $2 billion in 2013. “The revenue increases reflect our 5.6% ability to outreach to members,ensuring that they’re seeing their doctors,”said Jack Stephen- Rising steadily Queens 61.1% 33.3% son ,president and chief executive of HealthPlus.State-funded premiums can increase four- New York state’s spending on fold, Mr. Stephenson said, if an enrollee goes from “healthy nonuser” to “healthy user” pre- Medicaid is projected to Staten Island 57.5% 7.3% 35.2% mium categories by visiting their primary-care physician once a year. “We want people to grow 17% over five years 020406080100 see their doctor,” he said. “To get preventive care, get timely and high-quality care.” (figures in millions). 1-As of April 15, 2014. 2-Child Health Plus. 3-Qualified health plans. Source: NY State of Health 2014 Open Enrollment Report Insurance companies found that the ACA encourages people to become more involved Medicaid in their health care. “We’ve been trying to have a heightened sense of giving individuals the tools and the information they need to make informed choices,” said the Rev. Patrick $20M $19.1M Who’s covered Frawley, president and chief executive of Fidelis Care New York (No. 9). Fidelis increased its city membership by 17.2% since last year, the largest jump on the list. 19M Portion of population with insurance, by borough In the past year, Fidelis opened a revamped website and a redesigned member portal. 2010 2013 The firm is currently piloting self-serve kiosks across the state to provide residents with 18M 92.2% 91.8% 85.0% 86.2% 86.5% 88.8% 89.7% insurance information. It will expand the program if it’s deemed successful. 83.7% 82.2% 82.2% Aetna , the nation’s third-largest insurer (and No. 3 on Crain’s list) reported an 8.6% in- 17M crease in city members in 2014, to 1.1 million, and a 7.1% jump in revenue. Steve Logan,pres- ident of Aetna’s New York market,said the company saw growth in many sectors.To cite just 16M one, “private exchanges are becoming more popular for our national accounts, middle- 2014 2018 market and small-group,” he said. “We’ve seen solid growth across the board.” Source: NYS Division of the Budget, Bronx Brooklyn Manhattan Queens Staten Island —nicholas wells Mid-Year Budget Update Source: U.S. Census, American Community Survey
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December 1, 2014 | Crain’s New York Business | 13 20141201-NEWS--0014-NAT-CCI-CN_-- 11/25/2014 6:59 PM Page 1
REPORT HEALTH CARE Oscar insurance Obamacare 2.0
Continued from Page 10 health plans on the exchange in the targets freelancers Most eligible New Yorkers who nine counties where it operates. Re- had an incentive to get coverage like- cently, it introduced such perks as a ly have done so. The uninsured are $20 reward for getting a flu shot and working spaces, freelancers, real es- Maimonides spokeswoman said harder to reach. They often are non- $60 for a wellness visit—preventive Startup’s branding tate brokers,” said Mario Schlosser, Oscar “announced that they are native English speakers, don’t under- services that are already free under lures tech-savvy one of Oscar’s three founders. dropping Maimonides from their stand health insurance or are healthy Obamacare. Oscar also will pay its Asked if he expected many for- plan,effective Jan.1,but we look for- folks deterred last year by Oba- doctors to email and text patients. independent workers mer Freelancers Health Insurance ward to discussing the matter further macare’s technology glitches. Eventually,the company hopes to of- members to switch to Oscar, Mr. with them in the near future.” For some,insurance is still just too fer one-click online scheduling, said Schlosser gave a cautious yes. “We Oscar’s strategy is to create a expensive; on average, this year’s pre- co-founder Mario Schlosser. BY IRINA IVANOVA have a good product for people who seamless experience with the re- miums are 4.5% higher than last used to be in that land. We’re defi- sources it does have.The company is year’s. Exchange officials are urging Immigrants and freelancers The cancellation of Freelancers encouraging doctors to email and current enrollees to shop around— Despite its tech prowess, Oscar Health Insurance, which will leave call their patients by paying them for which means everyone is in play to be also is struggling to reach certain po- 25,000 members without their Oscar, with its that service. poached by a competing insurer. tential customers. Oscar’s marketing health plans next year, is good news Young people need a lot more materials were available in Spanish for other insurers who are luring the reminders and Selling convenience prodding to sign up: as many as 15 last year, but “neither we nor anyone displaced enrollees to their own One member tweeted that having ads, messages or prompts to actually else had been able to go deeper into plans. Among them: Oscar Health, perks, ‘is like Oscar insurance, with its reminders choose a plan, said Mr. Henry.Insur- the Bronx or Queens,” he added. an insurance startup that targets in- and perks,“is like having a third par- ers are turning to mobile advertising, Another population targeted by dependent workers. having a third ent.”It’s a strategy that works on two a channel that wasn’t widely the insurance industry is the Funded by venture capital, the levels. Encouraging members to get used last year but is very ef- 25,000 New Yorkers who insurer acquired 17,000 members parent’ preventive care gives Oscar healthier fective in reaching a youthful 4.5% had been insured through since its launch in 2013. This year, enrollees.The “high touch”approach audience. AVERAGE Freelancers Union. The the company is setting a goal of cap- makes members feel they’re getting a Insurance newbies are INCREASE in NYS health plan was not compli- turing a 10% share of all new en- boutique product. harder to enroll.They often in Obamacare ant with the ACA, and in premiums in rollees who sign up on the state’s The next step in Oscar’s quest for must be taught why insur- 2015 over 2014 October Freelancers Union Obamacare exchange, the New nitely going to be out there and have convenience? Helping book doc- ance is important and how announced a deal that gave York State of Health. conversations with them,” he said. tors’ appointments through Oscar. to use it. Still, that target Empire BlueCross Blue- These conversations also are ZocDoc is the national leader in population is coveted by health Shield an advantage in enrolling Signing up coders crossing the river, as Oscar expands that niche, but Oscar would be one plans, Mr. Henry said, because once those members. But signing up with Oscar recently appeared at the to New Jersey, where it will be vying of the first insurers to follow suit. they are signed up, they are usually Empire is optional—and these New New York Code + Design Academy against only six other companies. In “I’d love to have a button you much less likely to switch to a com- Yorkers are fair game for Empire’s to talk about how the Affordable New York, where Oscar competes click to say,‘I want to have a wellness petitor. That means such members competitors. Care Act has an impact on inde- with 16 carriers, its network is nar- visit,’ put the times you’re available are more profitable, given that the Independent workers are “poster pendent workers. It’s the first of rowing. Memorial Sloan Kettering and have it automatically book an cost of acquiring each new enrollee children for subsidies,”said Elisabeth many marketing initiatives aimed at Cancer Center and Maimonides appointment,” Mr. Schlosser said. is $60 to $300, according to Audi- Benjamin, vice president of Health freelancers. Medical Center will no longer be “Many, many doctors would love to ence Partners’ research. Initiatives at the Community Service “We’re doing a lot with co- part of Oscar, starting next year. A do this as well.” Ⅲ One insurer targeting eligible im- Society of New York, which has a migrants is MetroPlus, an estab- state contract to help people sign for lished Medicaid player that launched health coverage. Photo Credit: Buck Ennis, Crain’s New York Business its first commercial product in 2013. “Freelancers tend to have business CRAIN’S Business Breakfast Forum The health plan grabbed a 35% mar- expenses and deductions, and a very ket share in New York City last year, low modified adjusted gross income,” attributable to its low premiums. Ms.Benjamin said.“Last year,a lot of But for Obamacare 2.0,several in- people came out who had some in- surers have lower premiums. come and just assumed they weren’t “We’ve had to step up our game a eligible for free coverage, and found little bit,” said Seth Diamond, out they were eligible for Medicaid.” MetroPlus’ chief operating officer. Audience Partners,the consulting firm, recently launched a campaign Price matters prompted by Freelancers’ exit from Maya Dangerfield, a 26-year old the market that targets artists and student and waitress, chose Metro- other independent workers. These Plus for one reason: price. When she and other customers who lost their left her teaching job last year,she said, health plans are especially valuable to Cyrus R. Vance, Jr. she “wanted to get the minimum, ba- insurers because “they have demon- sic health insurance and dental,with- strated they are willing and able to Manhattan District Attorney out spending a lot of money.” With purchase insurance,” said Mr. Henry. subsidies, MetroPlus’ silver-tier plan For example, Peter Wilk, an inde- Tuesday, January 13, 2015 costs her just $62 a month—about pendent marketing consultant in one-fifth her former Aetna premium. Brooklyn, tried different plans with The Manhattan District Attorney will discuss: The Yale Club Like many MetroPlus members, Freelancers over the years. Premiums 50 Vanderbilt Avenue who tend to skew young, Ms. Dan- • Transformative criminal justice investments ranged from $345 to $406 a month. 8:00 a.m. – 8:30 a.m. Networking gerfield is happy about the plan’s price “For almost a decade,I was able to he’s making but not its website. buy for myself, at a fairly reasonable Breakfast • New strategies and tools to combat cybercrime “You can’t automatically pay your rate,insurance that provided access to 8:30 a.m. – 9:30 a.m. Program bill,you don’t have a profile with your the top doctors and top hospitals in • How public-private partnerships can fi ght Cost to Attend: doctor’s visit, all things that Aetna New York City,” he said. “It was very fi nancial crime and human traffi cking used to have,” Ms. Dangerfield said. manageable.” $125 for individual ticket(s) “It’s kind of a pain in the butt.” At 48, Mr. Wilk must now $1,250 for priority reserved tables of 10 By the end of 2014, MetroPlus’ comparison-shop for coverage,and is You must be pre-registered to attend this event. website will offer automatic bill pay- scheduling some procedures before Register Today No refunds permitted. >> ments and let members check their the year-end in case a new plan www.crainsnewyork.com/events-cvanceforum For more information: claims and update personal informa- bought on the exchange doesn’t cov- Sponsored by: Jordan Nowlin tion,a response to customer feedback. er his preferred hospital or out-of- Phone: 212-210-0739 Email: [email protected] “We heard you,” said Mr. Diamond. network care. Oscar Health,a new,venture-cap- One thing is certain: Thousands ital-backed insurer, is differentiating of New Yorkers will change their in- For sponsorship information, contact Joanna Harp at itself by marketing a premium prod- surance plans or sign up for the first 212-210-0278 or [email protected]. uct.The company enrolled about 4% time between now and Feb. 15. For of those who bought commercial insurers, the game is on. Ⅲ
14 | Crain’s New York Business | December 1, 2014 VIORAL HA BE HOM Y ALLY N IC S TR IA BECAUSE A TRANSFORMING N H V C Y HEALTHCARE SYSTEM E S P
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Madden-Baer R, McConnell E, Rosati RJ et al. Implementation and Evaluation of a Depression Care Model for Homebound Elderly. Journal of Nursing Care Quality. 2013. Jan-Mar; 28(1) 33-42. Madden-Baer R, Rosati RJ, Development, Implementation and Evaluation of a Psychiatric Home Care Evidence-Based Practice. Presented at the 2013 VNAA Annual Meeting, Fort Lauderdale, FL, April 12, 2013. © 2014 VNSNY 20141201-NEWS--0016-NAT-CCI-CN_-- 11/26/2014 2:07 PM Page 1
IN THE BOROUGHS MANHATTAN
to a parallel legal system seated in Over the decades, the parish be- plus the opportunity to channel $40 the Vatican, where matters are not came home to a diverse group of million from the sale into educa- Higher authority always so cut-and-dried. French-speaking immigrants from tional scholarships, led Cardinal At nearly 2,000 years, the around the world, including Haiti. Egan to his 2007 decree, which was Continued from Page 1 aging buildings in the church’s real Catholic Church ranks as one of the News that it had been slated for clo- formally carried out in 2013. The no reason to review the case,” the estate portfolio. A similar argument longest continuously operating insti- sure drew pleas to save it, from Vatican gets a 10% cut of the sale Monsignor Gregory Mustaciuolo, a was made in 2007 by his predecessor, tutions in the world. Along the way, French bishops, the French consul price, according to Mr. Borre. high-ranking official in the archdio- Cardinal Edward Egan,when he tar- it has accrued a vast collection of general in New Ms. Statz and other parishioners cese, wrote to a Vatican cardinal geted 21 parishes for closure, includ- rules and regulations known as York and even have fought back in part by chal- shortly after the suit arrived at the ing St. Vincent de Paul. (Brooklyn canon law for dealing with the less- 1868 then-French lenging the church’s math. They Holy See. and Queens lie in a separate diocese.) spiritual aspects of managing the or- YEAR church built President hired their own consultant—the He had good reason to want it This time around, of the 19 church- ganization.“We are talking about an Nicholas same one used by preservation insti- thrown out: Archdiocesan officials es that will soon sit empty, only two empire,” Mr. Borre said. “And the $50M Sarkozy. tutions such as the New York Land- had already drawn up a contract enjoy landmark protection.The oth- day-in, day-out management of PRICE the “The church marks Conservancy—who con- with a buyer willing to pay $50 mil- ers are all ripe for redevelopment. what happens in 210,000 parishes developer was for people cluded that repairs to the church lion for the property, a through- “Our churches are not meant to under 5,000 bishops or cardinals be- agreed to pay coming from all would cost a mere $365,000. block site that includes two residen- be empty and deteriorating muse- comes one hell of a management is- in 2013 over New York The arguments from both sides tial buildings on West 24th Street. ums, as I trust you will agree,” Car- sue.” and New Jersey,” are now in the hands of a Vatican dinal Dolan wrote in a Sept. 14, Even as the ranks of the faithful 10 said Claire court official known as the promoter Defying the odds 2012, letter directed at the faithful thin in America, the Vatican may DAYS parishes Lesteven, a for- of justice, who, according to Mr. But against all odds, the case of in Chelsea. “The archdiocese has not want some of its historic have to appeal mer parishioner Borre,will shepherd the case through the handful of parishioners versus the stated that the buildings of closed churches torn down. That is pre- closure who currently the legal process and write an opin- archdiocese has advanced further in parishes, if it is determined they will cisely what real estate attorney Olga does outreach for ion that will be delivered to the the Vatican’s rarefied court system not be needed for pastoral service, Statz is counting on. Ms. Statz, the another parish. “The francophone judges, who will have the final say. than any other appeal in recent mem- will be leased or sold. Such will be daughter of Haitian immigrants community worshiped together, and The fate of St. Vincent de Paul, ory. Last summer, it was accepted the case for St. Vincent de Paul.” who had attended St. Vincent de for me, that was very important.” and arguably churches around the into the highest appellate level, It remains unclear both what the Paul since the 1970s, is working country, could be answered as soon where cases are argued entirely in a interested buyer had hoped to do with with her mother,CleomieSimon,to Raising funds as next spring, when the Apostolic dead language and outcomes are de- the property when it inked a contract get the church reactivated. Ms. Statz and her mother were Signatura next meets for its biannu- cided by a few cardi- in 2013, and “It had a long reputation of serv- the de facto leaders a couple of years al conference at the Palazzo della nals behind highly whether that pact is ice, but that has now ended,” she ago in the effort to raise more than Cancelleria. ornate but firmly ‘This is the still valid. A few said, pulling stacks of case files from $100,000 in donations to pay for the The lessons learned may prove closed doors. months ago,howev- a shelf in her Murray Hill apart- church’s monthly bills. They even valuable for developers, who might In the process, canary in the er, a plan to build a ment,barely a mile from the church. drummed up $70,000 in grants from think twice before signing a purchase the group has 220,000-square- “Everyone has moved on.” the American Society of the French contract with the archdiocese,and for stalled the archdio- mine shaft’ foot, mixed-use At least for now. Legion of Honor and the French other parishes looking to save their cese’s plan to rid it- project “above and The parish she and a handful of Heritage Society. After the archdio- buildings from the wrecking ball. self of a money- around” the existing others have been trying to save since cese prohibited the cash from being But for many New York City losing asset for a church surfaced on 2007, when the archdiocese first used for repairs, however, the grants churches targeted by the latest hefty sum, and ad- the website of a warned of the closure, has roots that had to be returned. In 2008, Ms. round of downsizing, it could al- vanced a case that could set an im- company called Maddd Equities. go back to 1842. That was when Fa- Statz unsuccessfully appealed to the ready be too late. portant precedent for how the arch- The planned project consisted of a ther Annet Lafont began saying city’s Landmarks Preservation Com- According to canon law, parish- diocese must deal with future 100-room hotel, luxury condomini- Catholic mass in French, for the first mission to have the building protect- ioners have exactly 10 days after a church closures. ums and retail space, according to time in the city’s history, down on ed. But to the surprise of virtually all, closure is publically announced to “This is the canary in the mine the description, which was prompt- Canal Street. The current building she has found her greatest success in ask the bishop to reconsider, a for- shaft,” said Peter Borre, a Boston- ly taken down following an inquiry was completed in 1868. The pastor the church’s own court system. mality that kicks off the appeal based canonical court adviser hired by from Crain’s.Maddd Equities did not eventually went on to host one of the The legal breakdown goes like process, and one that is closely the parishioners to advance their case. respond to a request for comment. first racially integrated congregations this: The archdiocese has argued tracked by Vatican court officials. In late October, Cardinal Timo- Under New York law, the church in the country, and even opened a that infrastructure problems, in- “Not to exaggerate,if your first ap- thy Dolan announced the merging of could have been razed years ago. St. school in his home for black children. cluding a leaky roof,would cost $3.6 peal back to the bishop arrives on day 37 parishes in the Bronx,Manhattan Vincent de Paul does not have land- “After we win, I am going to try million to repair,and that the church 11,you’re screwed,”said Mr.Borre. Ⅲ and Staten Island in response to mark status, and the archdiocese and get that part of West 23rd Street has incurred nearly $530,000 in dwindling membership and increas- holds the property’s deed free and renamed Father Lafont Way,” Ms. debt. Those figures, coupled with a LISTEN to a discussion at ing costs for maintaining the many clear. But Cardinal Dolan is subject Statz said. dwindling number of congregants, CrainsNewYork.com/podcasts REAL ESTATE
payments that would come from the up with more cash on hand. Subway mall inks eventual Pier 6 development, which The report also assumed that the B’klyn Bridge Park according to current plans would re- Brooklyn Bridge Park Corp. could jewelry store sult in towers of 15 and 31 stories.The sell sponsorship rights and raise pri- Turnstyle,the new shopping mall be- group recently won a court injunction vate money to the tune of $30 million, neath the Columbus Circle subway Corp. rebuts foes that would stop the corporation from a prediction that Ms. Myer said was station, has snagged another tenant. selecting a Pier 6 developer, and be- too hypothetical and has not worked Madison Jewelers, a two-year-old lieves that the amount of park space in the past for others.The corporation retailer with an Upper East Side shop, he Brooklyn Bridge Park Corp. should be maximized. said that the opposition group under- signed a 10-year lease for 400 square doubled down last week in de- On Nov. 7, People for Green estimated the amount of capital re- feet on the concourse level. The ask- fense of a controversial residen- Space presented a plan showing the serves needed to run the park. ing rent was $400 a square foot. tial development at Pier 6 on the park would have enough money by “If the park truly does need the “Madison Jewelers will benefit Brooklyn Heights waterfront that it relying on the real estate projects al- money, the burden is on them to from a steady stream of customers,” contends is needed to keep the park’s long- ready in the works. Last week, the prove it—and we don’t feel they said James Famularo, the Eastern
T buck ennis term finances in order. corporation responded to the report. have done that yet,” said People for Consolidated broker who, along In the latest round of a heated battle, the corporation rebutted an alter- “The critics who have ques- Green Space’s Lori Schomp. with colleague Ravi Idnani, repre- native financing model recently advanced by the People for Green Space tioned our modeling don’t appear to The group contends that the cor- sented the tenant in negotiations.He Foundation, which asserts the new development is not needed. have a background in park manage- poration’s revenue from property-tax noted that the location sees daily foot The corporation maintains the 1.3-mile waterfront park, which stretch- ment, maritime infrastructure or values, which it collects as payments traffic in excess of 80,000 and that es from the Manhattan Bridge in Dumbo to Atlantic Avenue at the Colum- public finance,” said Ms. Myer. in lieu of taxes, will increase suffi- 170,000 people work in the area. bia Street waterfront district, near where the Pier 6 site is located. And al- Specifically, the corporation ciently to cover its costs when tax Madison Jewelers is one of sev- though it has accepted public dollars for capital construction, the body is in charged that the opposition group’s breaks expire for existing properties, eral tenants,including Dylan’s Can- charge of funding its own operations, largely through real estate projects— financial analysis was erroneous. and has called on the corporation to dy Bar and Magnolia Bakery, that which has been the source of the controversy. It did not accurately take infla- make its longer-term financial mod- have signed on for space at the sta- “We are a not-for-profit,and we don’t borrow money,”said Regina Myer, tion into account and predicted rev- el public.That revenue will go up fur- tion. Turnstyle was represented by president of the Brooklyn Bridge Corp.“Without this new construction,we enue would grow at a much higher ther as property values increase. Ms. Lisa Rosenthal and Ryan Bergman would go broke in 10 to 15 years.” rate than expenses, and thus esti- Myer said that the calculation was of Lansco Corp. Yet People for Green Space argued that the corporation can live without the mated the corporation would end speculative. —joe anuta —adrianne pasquarelli
16 | Crain’s New York Business | December 1, 2014 The Giving Guide
A Special Advertising Supplement to Crain’s New York Business The Giving Guide Special Advertising Section
It simply cannot be denied that New York is one of the greatest cities in the world. With our rich and diverse cultural assets, we have a long and deep connection to the arts, and coupled with our world-class hospitality industry, you would be hard-pressed to find a better place to live, work and play. Yet as unique as New York is, perhaps one of our greatest strengths and what sets us apart from others is how charitable we are as a city.
Each and every year, the business community of New York City contributes hundreds of millions of dollars to a wide variety of worthy causes, and those donations make a sizable difference in our communities. This holiday season, we hope that the exemplary efforts of our city’s amazing businesses will exceed their high standards of generosity.
The nonprofit industry is a vital piece of NYC’s economic puzzle, providing thousands of jobs to motivated individuals who work around the clock to better the causes they support, and, more important, to make a difference in the lives of people both home and abroad. We at Crain’s New York Business recognize and applaud the importance of nonprofits, and strive to highlight the great achievements made across the industry in all of our reporting platforms, be it in print, online or through our in-person event coverage.
As hard as we strive to support and showcase the work of nonprofits, there is no time like the holidays to help make a difference and lend your charitable support. The last three months of the year are critical for so many of our cherished nonprofits to either make or miss their budgets. We hope that, as business leaders, you will consider making a powerful difference with a contribution that will make a meaningful impact on our nonprofit community.
With that, Crain’s is pleased to present you with our 2014 Giving Guide, a special advertising supplement to Crain’s New York Business, which both shines a spotlight on great nonprofits in New York City and acts a year-round reference manual for donors. Our goal is that you will find the guide to be helpful in better understanding the benefits a company can realize by becoming more actively involved in philanthropy. In addition to drawing attention to New York’s great nonprofits, the Crain’s Giving Guide also provides updates on charitable deductions for 2014, underscores how philanthropy can be an effective team-building exercise, and gives insight into creative business gifts that help give back to the community.
This time of year truly is the time for giving, and we here at Crain’s New York Business hope that the 2014 Giving Guide will inspire you to start a new nonprofit relationship, or enhance existing ones.
Happy holidays and warmest regards,
Jill Kaplan VP & Publisher Crain’s New York Business
Table of Contents
Business Gifts That Give Back ...... S3 Smart Tax Planning Can Strengthen Donations ...... S8 When Donating Time Builds Stronger Teams ...... S14, S16 Participants Futures in Education ...... S4-S5 The Hebrew Home at Riverdale ...... S6-S7
Crain’s 2014 Giving Guide is produced New York Women’s Foundation ...... S9 by Crain’s Custom Studio. For more information, please contact New Alternatives for Children ...... S10-S11 Trish Henry at (212) 210-0711 or [email protected]. The digital edition is available at United Way ...... S12-S13 crainsnewyork.com/givingguide. Good Will Industries of Greater New York & Northern New Jersey ...... S15 Clune Construction Company ...... S16 S2S2S2 The Giving Guide Special Advertising Section Business Gifts That Give Back
Looking to send holiday gifts your clients will really remember? Make this the year you break
away from classics like Charitable gifts can make a difference at a time when which charities matter most to them, consider giving them corporate donations to charities have stayed relatively flat, a GiveNow card through the site — it will enable them to according to the most recent statistics from the National choose their own charity for the donation. the fruit basket and give Philanthropic Trust, a public charity that provides philanthropic expertise to donors, foundations and Tap their personal interests. a charitable gift instead. financial institutions. Many clients appreciate donations in their name that show If chosen with care, a charitable gift can be especially you’ve paid attention to their passions outside of work. meaningful to clients, strengthening your personal For a client who enjoys the outdoors, consider making connection with them while simultaneously supporting a gift to The Nature Conservancy (nature.org). You can a good cause, according to Paige Arnof-Fenn, founder & adopt an acre of land for conservation anywhere from CEO of Mavens and Moguls, a global strategic marketing the Appalachians to Southwestern Australia. For a client consultancy in the greater Boston area that often serves who loves animals, consider giving to the World Wildlife clients in New York City. Fund (worldwildlife.org), where donors can adopt wildlife ranging from pandas to tigers. “It’s got to be something near and dear to their heart,” Ms. Arnof-Fenn said. “That sends a message that you listen If your clients support causes that help children, consider and care about and know them as people.” donating in their name to KaBOOM!, a national nonprofit that helps communities build playgrounds in underserved Here are some ideas on how to select gifts for clients communities. Or give to a cause that helps youngsters coping that make a difference. with disabilities, such as Autism Speaks, a New York City- based organization that funds biomedical research. Think local Education charities are also one of the top categories to If you serve distant clients who love New York, consider support, according to Charity Navigator, a nonprofit that sending a gift that reminds them of the city — and also runs a site to guide charitable giving. Save the Children helps one of New York’s art institutions. (savethechildren.org) offers opportunities to help send girls and orphans to school. For a design buff, try shopping in the gift store of the Museum of Modern Art (moma.org). Check out For entrepreneurial clients, consider making a the offerings from the Kickstarter collection, which donation to Heifer International (heifer.org), which supports artists who are turning their ideas into products. helps agricultural entrepreneurs in developing countries For Brooklyn fans, consider sending work by a local become economically self-sufficient. Another option is artisan sold through the Brooklyn Museum Shop Rising Tide Capital, a nonprofit based in Jersey City that (shop.brooklynmuseum.org). And if you’re seeking an provides training to help women, immigrant and minority entertaining gift for clients’ youngsters, check out the entrepreneurs start and grow businesses. Cubebots, a combination puzzle and action figure sold through the Guggenheim Store (guggenheimstore.org). Giving a gift that supports crafts entrepreneurs in developing economies is another option. Outreach Support a cause that has touched International (outreach-international.org/shop) — a charity based in Independence, Mo. — offers handcrafted them personally. items through its online store, which supports people in If you know clients care about a particular cause — impoverished communities. Gift items range from intricate perhaps because their family has been touched by an wooden puzzles to delicate bangles that clients can’t find at illness, or they’re passionate about an issue — donating their local mall. to their favorite charity can be a powerful way to connect. JustGive.org offers online shopping to benefit charities Many of your clients will find their desks piled high ranging from the American Cancer Society and American with generic gifts as the holidays approach. Showing you Diabetes Society to MADRE, an international human care with a thoughtful charitable gift can go a long way { rights organization focused on women. If you’re not sure toward building your relationship in 2015. S3 The Giving Guide Special Advertising Section Futures in Education
Futures In Education 243 Prospect Park West Brooklyn, NY 11215 www.futuresineducation.org
Total Employees: 11 Annual Revenue: $8,000,000 Year Established: 1989
Mission Statement: Our mission is to ensure that an excellent Catholic education continues to be a viable option for generations of students in Brooklyn and Queens.
Service Areas: Brooklyn & Queens
Managing Executives: John Notaro, Director of Operations and Programs; and Nicholas Vendikos, Director of Development
Board of Directors: Bishop Nicholas DiMarzio Ph.D., D.D., Robert B. Catell, Anthony J. Bonomo, J.D., Susan F. Altamore Carusi, Esq., Martin Cottingham, John Duane, Brendan J. Dugan, Clarissa Elgarten, Thomas Flood, Robert F. Gartland, Reverend Monsignor Jamie J. Gigantiello, Louis C. Grassi, Reverend Monsignor Kieran E. Harrington, William J. Hogan, Kevin Kearney, Esq., John A. Loconsolo, Joseph M. Mattone, Sr., Esq., Charles McQuade, Arthur Mirante II, Michael Enhancing teacher training Annual Scholarship Fund Dinner, taking place at (Buzzy) O’Keeffe, Lester J. Owens, Regina Pitaro, Providing state-of-the-art technology the Waldorf Astoria each year in OctoberThe 2015 Annual Scholarship Fund Dinner will take place on Bruce C. Ratner, Joseph Sciame Supporting extra curricular programs, including October 15, 2015. Music, Art, Gym and After-School Programs Developing marketing/recruitment strategies Goals Volunteer/Giving Opportunities: 1. General Goal: Our goal is straightforward: Alumni Outreach and School Be an Angel to a Student program Changing lives through the gift of education. Fundraising Programs An Angel helps subsidize the cost of Catholic grammar school tuition to a student by providing 2. Specific Goals: Futures In Education believes Catholic Alumni Partnership every student in Brooklyn and Queens should partial tuition assistance starting at $1,500 per School Business Partnership have the option to benefit from a life-enriching, year. Angels provide both financial support and values-centered Catholic education, regardless of act as role models in students’ lives. An investment financial constraints. We believe receiving a Catholic Fundraising Events: in an Angel student’s education is truly a life- education will provide young students with the changing gift. tools and training necessary to truly succeed in Spirit of Christmas Concert, taking place every Adopt-a-School program their future professional and personal lives. Futures December. This year’s concert is being held at the This program joins prominent businesses with In Education believes that the gift of a Catholic Co-Cathedral of St. Joseph in downtown Brooklyn financially challenged schools. A benefactor shares education has the power to trump poverty — on December 18, 2014. resources of time, talent and treasure with a students in Brooklyn and Queens should not miss Angels on the Fairway Golf Outing, taking place struggling school and its students by strengthening out on this opportunity because they simply can’t each spring at The Creek in Locust Valley, NY. The the learning environment and assuring the afford tuition. Our aim is to provide assistance 2015 Golf Outing will be held on May 14, 2015. school’s financial viability, with an emphasis on to these deserving students through endowment renewal and revitalization. funds and fundraising programs that focus on key educational priorities: “Our goal is Contact Information: Scholarships and Tuition Assistance straightforward: For more information regarding volunteer or giving Be an Angel to a Student Program opportunities, please contact Nick Vendikos, Director Diocese of Brooklyn Scholarship Changing lives of Development, at 718-965-7308 ext. 1624, or via email at [email protected]. Bishop’s Scholarship Program through the gift of Programmatic Support Maintaining up-to-date curriculum education.”
S4
The Giving Guide Special Advertising Section The Hebrew Home at Riverdale
Photo credit: Claire Yaffa
The Hebrew Home at Riverdale Center model. The right to self-determination of Fundraising events: and Affiliates older adults guides the spirit and activities of the Weinberg Center. Hebrew Home Annual Gala, The Harry and Jeanette 5901 Palisade Avenue Weinberg Center for Elder Abuse Annual Awards Bronx, NY 10471 The Hebrew Home at Riverdale Breakfast. Phone: 718-581-1234 We empower older adults and their families – no www.hebrewhome.org matter who they are, where they are from, or what Volunteer/giving opportunities: www.weinberg-center.org their needs may be – to live the fullest lives they can through compassionate care and an innovative Volunteers work directly with residents and assist services. professional staff to achieve the Home’s mission of Total employees: 2,500 providing the best possible health care and quality of Annual Revenue: $562,861,231 We will transform the landscape of aging from a life for the elderly. Year established: 1917 fearful, unknown process into a healthy, empowered experience through innovation, compassion, What do Volunteers Do? Managing executives: Daniel Reingold, President and the highest level of care, all inspired by our Recreational Activities & CEO; David Pomeranz, COO; David Weinstein, dedication to helping our residents, members, and Rehabilitation Services EVP; Luz Liebeskind, CFO patients live a full life. Escort and Transport Mealtime Assistance Board of directors: Service area: Greater New York City (five Officers: Jeffrey S. Maurer, Chairman; Andrew boroughs), Westchester County, NY Resident Visits L. Gaines, Vice Chairman; Kenneth S. Lazar, Vice Library Service Chairman; Joseph Wygoda, Treasurer & Secretary Top sources of funding (by percent): 69% New Discussion Groups and entertainment York State Funding , 6% Federal Funding, 10% Pet Visits Directors: Robert S. Gilman, Mel Harris, Martin Private Funding, 7% Contributions, 8% Other Hoffman, Joel Hollander, Steven M. Jacobson, Docent for Museum and Home’s Art Collection Stanley M. Katz, Michael J. Klosk, Isadore Kreel, Clerical, Bookkeeping or Accounting Assistance M.D., Richard S. Lane, Sonny Loeffler, Burton P. Resnick, Thomas S. Rogers, Joshua Sapan, “Through a broad array of Who Volunteers? James A. Shifren Any individual 14-years or older looking to services, the Hebrew Home develop new skills Honorary Trustees: I. Roy Cohen, Michael Fuchs College and high school students seeking practical Milton A. Gilbert, Michael Palin, Seymour D. Reich at Riverdale offers a complete experience and internships