TOP STORIES The breakdown After slow takeoff, on a big express lanes b’day —Alair finally land in area Townsend airports PAGE 2 fends off ® sales pitches Surging Page 11 numbers of NY kids spur jump VOL. XXIII, NO. 9 WWW.NEWYORKBUSINESS.COM FEBRUARY 26-MARCH 4, 2007 PRICE: $3.00 in learning programs PAGE 2 Cash crunch If Sirius and XM merge, who will get the ax? puts housing PAGE 3 Chelsea hot spot Bombay Talkie plans at risk looks to expand NEW YORK, NEW YORK, P. 6 applications pending for financing Developers may not are Silverstein Properties Inc.,

Grads at second- gettyimages get bonds to build Rockrose Development Corp., the Gotham Organization Inc. and tier schools are in affordable units as Levine Builders. demand; legal “We are hopeful that the city state’s funds run low and state will come up with a solu- education changing tion to this problem,” says Jon BUSINESS OF LAW, P. 17 BY JULIE SATOW McMillan, director of planning at Rockrose. the state agency that oversees As a result of the shortage in BUSINESS LIVES the financing of affordable hous- tax-exempt bonds, he says, his ing projects is facing a multi- company may need to delay a EXIT STAGE LEFT billion-dollar cash crunch. planned groundbreaking The New York State for a $500 million project Sick and tired Housing Finance Agency $4.3B on 10th Avenue between of low pay and has $4.8 billion worth of SHORTFALL West 37th and West 38th such projects in the pipe- in tax-exempt streets. rejection, some bonds to cover line, but it expects to have projects in A spokesman for Silver- struggling actors only $540 million in tax- HFA’s pipeline stein declined to comment; wireimages buck ennis exempt bonds available to officials at Levine Builders find new respect THE PRODUCERS: Shawn “Jay-Z” Carter, Jermaine Dupri and Bryan Leach (clockwise for living nine from top left) have taken key posts in the past two years; Rick Rubin may be next. award to developers this year. and Gotham Organization could PAGE 27 “This really ties the administra- not be reached by press time. to five tion’s hands,” says HFA President The HFA is scrambling to ad- Priscilla Almodovar, who joined dress the funding shortage by in- the agency in mid-January. stituting tougher criteria for devel- AT DEADLINE MUSIC LABELS’ Among the developers with big See CASH CRUNCH on Page 8 DOUBLEDAY BOOKS HAS AGREED TO PAY close to $2 million for a book by Princeton psychologist Daniel NEW LEADERS Comptroller’s test: Kahneman, who received the Nobel Prize in economics in Majors restore executive balance 2002 although he never studied economics.Tentatively by empowering hip hitmakers meeting the mark titled Thinking about Thinking, Mr. Kahneman’s first book for BY SAMANTHA MARSHALL a general audience will Can rookie DiNapoli examine the interaction of match huge returns behavior and the marketplace long hair, shaggy beards and flip-flops don’t jibe with in the manner of best sellers the image of a top executive at a major music label. Neither for pension fund? like Freakonomics and The do A Bathing Ape hoodies and diamond tooth grilles. But Tipping Point. the corporate offices of Big Music are looking less corporate by the day. Industry insiders say the mini-makeover is a step BY ERIK ENGQUIST LIZ CLAIBORNE INC. IS PULLING in the right direction. THE PLUG ON ITS MEXX retail This month’s appointment of Grammy-winning music new york state Comptroller brand in the United States, Thomas DiNapoli is in a tough sources close to the company producer Jermaine Dupri as president of Island Def Jam’s spot. Having been handed the job say.The clothier operates four new urban division is just the latest example of an emerging this month by legislators who re- domestic Mexx stores, record company trend: putting more hot music makers into jected a trio of experienced finan- including two in New York. positions of real executive power. cial professionals, the former as- See AT DEADLINE on Page 2 See MUSIC LABELS on Page 8 semblyman must maintain the outstanding returns of the state pension fund—or be lampooned as

a political hack who flopped as a lindström bekka COMINGNEXT WEEK rookie money manager. The latest trends in continuing Yet Mr.DiNapoli cannot play it difficult to sustain. The $145 bil- education: why online classes have safe.He takes over as sole trustee of lion fund is more aggressively in- ELECTRONIC EDITION not caught on, merits of executives a pension fund that returned 17% vested than ever,and Mr.DiNapoli vs. academic teachers, and more. annually over the last three fiscal will be tempted by a new state law

NEWSPAPER years, a performance that will be See COMPTROLLER on Page 9 AT DEADLINE

Continued from Page 1 to start in June. The SoHo shop, at 500 Broadway, opened less than two RIDGEWOOD SAVINGS BANK IS years ago, and the midtown store, ACQUIRING City & Suburban at 650 Fifth Ave., opened nearly Financial Corp. and its City & NEVER TOO EARLY: 12 years ago.Though Mexx is Suburban FSB for $119.1 Coach Sean very successful in Europe, million in cash. For Ridgewood, Peckett puts trainees through particularly in France, the the deal will add $670 million in their paces at concept never gained traction assets and 11 branches in Super Soccer Stars. stateside. Brokers are circling the Manhattan, the Bronx and Manhattan properties, but the Westchester. Ridgewood, which company may turn the leases has $3.3 billion in assets, over to another Liz brand. operates 24 branches in Queens, Brooklyn and the Bronx and on THE NUMBER OF NEW YORK Long Island. AREA TECHNOLOGY FIRMS acquired last year rose 17% over NONPARTISAN THINK TANK 2005, according to a study by DEMOS HAS EXPANDED its offices Innovation Advisors, a tech at 220 Fifth Ave.The building,

investment bank. Last year, 139 at West 26th Street, has an buck ennis local companies were acquired, asking rent of $108 a square compared to 119 the previous foot.The organization signed a year.The top three deals were 10-year lease for 13,300 square Motorola’s $3.9 billion acquisition feet on the entire fifth floor and of Symbol Technologies, a parts of the eighth and ninth Holtsville, N.Y.-based developer floors. It will be used for Lower education of radio frequency identification administrative offices, program technology; Silver Lake Partners’ space and a conference center. $800 million purchase of IPC Colliers ABR represented the Enrichment centers for under-5 set are booming Systems, a Manhattan-based tenant and landlord Dino & communications firm; and Sons Realty represented itself. NBC Universal’s $619 million BY TOM FREDRICKSON acquisition of iVillage, a THE STATE’S INSURANCE LOBBY Manhattan-based women- IS TAKING EXCEPTION to the state at age 3, Brooke Johannsen has already studied art and has moved on to soccer, gymnastics oriented Web site. hospital-union coalition’s and all-around gym. advertisements over Gov. Eliot QUEENS COLLEGE AND THE Spitzer’s proposed budget cuts. Her mother, Margaret, has enrolled Brooke in three 17-week classes at Kidville NY’s East DEPARTMENT OF VETERANS The ads, put together by the 84th Street location. Affairs are developing an Greater New York Hospital “It’s well worth it,” says Mrs. Johannsen, a stay-at-home mom who’s married to an education program for veterans Association and 1199 SEIU, call returning from Iraq and for a reform agenda that would investment banker and pays $2,085 for her daughter’s courses.The benefit: Brooke gets out of Afghanistan. Vets will be able to force “profit-rich HMOs, the apartment, burns energy and makes playdates with other children on the Upper East Side. take free courses in a variety of insurance and drug companies The large number of affluent young families who have opted for city over suburban life have areas including business, child to pay their fair share.” spurred businesses to offer children—including toddlers—lessons in everything from Chinese care, health care and medical Insurance advocates label them billing, information technology irresponsible. A spokesman for to yoga. and real estate. Graduates will the New York Health Plan Given New York’s surge of young children, the betterment trend is not surprising. be offered job placement Association says, “The attack See CHINESE on Page 8 services.The program, offered ads are a repeat of scare tactics through the college’s continuing that 1199 and GNYHA have education division, is expected used year after year.” ■

THIS WEEK IN CRAIN’S Fast-track airport security

NEW YORK, NEW YORK------6 fingerprints and the information Kennedy International Airport. Prescreened travelers needed for a federal background “Just wait ’til we start advertis- REAL ESTATE DEALS------9 now boarding at JFK; check will be issued the Clear ing,” says Steve Brill, Manhattan- identity card, which promises trav- based Verified’s chief executive. ALAIR TOWNSEND ------11 local firm leads way elers a speedy trip through special Last week, he stepped things up, THE INSIDER------12 airport security lanes. taking his kiosks to the Grand Hy- Three years after the concept of att. Law firms are next. Simpson WEEK IN REVIEW ------14 BY HILARY POTKEWITZ such lanes for prescreened travelers Thacher & Bartlett recently agreed NEIGHBORHOOD to host a booth in its lobby. william russell jr. just can’t seem Meanwhile,out at the airline ter- 29 JOURNAL------16 to get it right. A lawyer who travels ‘Some travelers minals, the pace of clearing security REPORT: THE BUSINESS frequently, he spends a lot of time is picking up for prescreened pas- trying to predict just how long he can afford it; the sengers.The city’s first express secu- OF LAW ------17 will waste inching along in airport rity lanes opened last month at security queues. rest are stuck Kennedy’s Terminal 7, where Mr. CLASSIFIEDS ------24 “It’s inevitable:If I leave plenty of Brill’s company teamed up with SMALL BUSINESS ------26 time, I sail right through,” says Mr. in the slow lane’ British Airways. Russell, a partner at Manhattan law “This is pretty cutting-edge,” BUSINESS LIVES------27 firm Simpson Thacher & Bartlett. says Steve Clark, senior vice presi- CORPORATE LADDER------29 “But whenever I cut it close, I get dent of customer service for the air- stuck in a huge line.” line. “It’s speeding up the security EXECUTIVE MOVES------30 On Thursday, Mr. Russell wait- process, which was our customers’ 31 THE WEEKS AHEAD ------30 ed in a security line for what he won approval from the Transporta- No. 1 complaint.” BOB LAPE ------31 hopes will be the last time: He tion Security Administration, the Clear landed at JFK’s Terminal 4 joined the business travelers queued Registered Traveler program is fi- in February, through a partnership vol. xxiii, no. 9, february 26, 2007—Crain’s New York Business (issn 8756-789x) is pub- lished weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Period- up in the lobby of the Grand Hyatt nally taking off in New York. Veri- with Virgin Atlantic Airways. Ear- icals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address Hotel at Grand Central Terminal to fied—one of three companies offer- ly next month,Verified will arrive at changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a visit a brightly lit kiosk set up by ing passes—signed up 1,000 people Newark Liberty International Air- copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents Verified Identity Pass Inc. during the first week that it manned port’s Terminal B. The company copyright 2007 by Crain Communications Inc. All rights reserved. Individuals who provide Verified kiosks in the British Airways and and its rivals are competing to open with $99.95, an iris scan, electronic Air France terminals of John F. fast-pass lanes at all three major

2 | Crain’s New York Business | February 26, 2007 The 2nd Irish wave Sirius Frequent visits “There is no question that [the talent BEATING A PATH passport issue] will affect our num- bers,” says Fred Dixon, NYC & common; shoppers’ Nations sending most tourists to NYC in 2005. targets include Company’s vice president of tour- United Kingdom 1.2 million ism development. Overall, Italian drain midtown condos Canada 815,000 tourism to the United States is esti- mated to have dropped 200% last Germany 401,000 year,according to a spokeswoman in Merger with XM BY LISA FICKENSCHER Japan 299,000 NYC & Company’s Milan office. Italy 292,000 The statistics for Ireland, by would dry up job vincent doheny of Callan, Ire- contrast, surged. land,comes to New York City twice France 268,000 source; ax will fall a year. He of course spends time Ireland 253,000 Hotels see spike with his two sisters who live here, Australia 235,000 at seven of the 12 Marriott prop- BY MATTHEW FLAMM but he has an ulterior motive for the erties in the city, for example, the Spain 205,000 visits: Shopping. number of Irish visitors in the satellite radio has been a losing Mr. Doheny buys armloads of The Netherlands 147,000 fourth quarter of 2006 spiked 40% proposition for investors. But for clothes and fills suitcases with hol- Source: NYC & Company over the year-earlier period. DJs,personalities and programmers iday gifts. Even though the former John Fitzpatrick,chief executive squeezed out of terrestrial radio in factory worker and his wife, a of Fitzpatrick Hotel Group, which recent years, the rival satellite radio schoolteacher, aren’t wealthy, their has three properties in Manhattan, services have been a combination of money goes a lot further in New says that at least 40% of the hotels’ oasis and sugar daddy. York than it does at home. MAKING LEMONADE: The city’s Irish ad campaign plays up the strong euro. clientele is Irish, versus 30% just a Too bad that the proposed merg- “There are clothes in my closet few years ago.The guests start their er of Sirius and XM could put an that I haven’t even tried on yet,”Mr. “shopping frenzy” at 8 a.m. and end to that. Doheny says. says Mr. Doheny, who spends about With a population of just 4 mil- don’t return until 11 p.m., he adds. “People past their prime and The couple have plenty of com- $2,000 per trip on clothing alone. lion, Ireland has become such an “They used to go to London for a people just emerging both found pany on their trans-Atlantic flights. Apparel and gifts aren’t the only important source of tourism and in- weekend to shop, but it’s less expen- homes at Sirius and XM,”says Mark Thanks to the weak dollar and items on the shopping lists. Some vestment that Mayor Michael sive for them to come here now,”says Lefkowitz, media director at Fur- their strong economy, the Irish are Irish residents are scooping up real Bloomberg traveled to Dublin in the native son of the Emerald Isle. man Roth Advertising. “A merger the city’s fastest-growing group of estate, following in the footsteps of early February to unveil a month- One of their destinations is will significantly reduce the open- visitors. In the past five years, the the Japanese and Israelis as foreign long, $100,000 ad campaign,“Shop Macy’s, where they inevitably visit ings—and the compensation—the number of Irish tourists has more investors in New York. While the Dollar Drops.” the luggage department. “They buy [talent] can hope to obtain.” than doubled, to 253,000, with The mayor also had a hand in in- so many items that they need some- Manhattan-based Sirius Satel- many, like the Dohenys, making Property makes list creasing the number of flights that thing to bring it all back in,” says a lite Radio has been particularly wel- multiple annual visits. cathal mcginley, owner of low-cost carrier Flyglobespan has spokeswoman for the Herald Square coming. It immediately gave Bruce Ranked No. 7 on the list of for- Dublin real estate brokerage firm between Ireland and New York.Last store, which ranks Irish shoppers “Cousin Brucie” Morrow refuge eign visitors two years ago,the Irish KMS Commercial, helped sell 121 year, tourism bureau NYC & Com- among its international top five. with a twice-weekly show when are expected to leapfrog the sixth- of 151 luxury condos at 18-20 W. pany opened an office in Dublin. They look for American brands CBS Radio dumped oldies station place French when 2006 numbers 48th St., a new building in Rocke- Though Ireland’s growth is con- such as Tommy Hilfiger, Converse WCBS-FM. come out in June. They’re gaining feller Plaza, to Irish investors.They sistent, some of its gains against and Sketchers.Mr.Doheny,for one, DJ Pat St. John and program- on the Italians, too. paid $800,000 to $2 million a unit. France and Italy are in part due to says the New York prices are a third mer-host Meg Griffin, veterans of For the euro-toting Irish, New “The No. 1 investment strategy difficulties those countries had in of those in Ireland. the once-great rock station York is brimming with bargains.“It’s for Irish people is property,” Mr. complying with a U.S. requirement WNEW, now work at Sirius. And, a tradition now for me and my wife,” McGinley says. that passports include digital photos. COMMENTS? [email protected] of course, the company gave Howard Stern a most lavish shelter from the smut police. NY radio alums fan out AT A GLANCE xm satellite radio, in Washing- program hits NY radars ton, D.C., has hired more than a VERIFIED IDENTITY dozen New York stalwarts, includ- PASS INC. ing Vic Latino, who was at WKTU, New York area airports by the end “There is some value to being tem,” says Barry Stein- and Rick Stacy, formerly with of the year. first to the market,” says Chris hardt, director of the NEW YORK FIRMS SIGNING UP FOR CLEAR WNEW. Designed as the TSA’s latest an- Rossi, vice president of sales and American Civil Liberty ■ Lehman Brothers An executive knowledgeable swer to alleviating airport bottle- marketing for Virgin Atlantic, Union’s Technology and ■ Morgan Stanley about the merger talks insists that necks in the post-Sept. 11 age of which chose Clear in December for Liberty Project. “Some ■ Simpson Thacher & Bartlett the combined operation could end heightened security, the program its terminals at both JFK and travelers will be able to af- ■ Skadden Arps Slate Meagher & Flom up adding programming staff. has only recently begun to catch on Newark. ford whatever the cost will NUMBER OF CLEAR MEMBERS IN NATION Sirius Chief Executive Mel Kar- around the nation. Mr. Brill, who founded Court be, and the rest of us will SINCE 2005 LAUNCH 36,000 mazin, who would head the new Market leader Verified expects TV and American Lawyer Media be stuck in the slow lane.” firm, told analysts recently that to have its express lanes up and run- as well as Brill’s Content,is using his NUMBER OF CLEAR MEMBERS IN NEW it would “offer more diverse pro- ning in 20 airports by the end of the connections to sign up big law Privacy problem? YORK AREA SINCE JANUARY 3,500 gramming for underserved inter- year. It launched the nation’s first firms, including Skadden Arps he also worries that the FOUNDER Steven Brill, former chairman ests” and “the best content from such lane at Orlando International Slate Meagher & Flom. treasure trove of personal and CEO of American Lawyer Media, both companies.” Airport in 2005. Clear lanes have Encouraged by his success, he’s information collected by founder of Court TV But it’s almost a certainty that just opened in Indianapolis, Cin- already eyeing other venues for the three companies could some bodies will be bagged.“To the cinnati and San Jose as well as in Clear, including sports arenas and be vulnerable to privacy extent there are similar channels, New York, and the company has concert halls. Mr. Brill wants to tap abuses. there may be some layoffs,” an XM signed up 36,000 subscribers. former business partner James “These companies are spokesman says. Dolan—chief executive of Cable- feeding their information Radio observers agree that the Ahead of the game vision Systems Corp., which owns to a government system new company,which would operate so far, Verified has just two rivals: Madison Square Garden—in an that is bloated, inaccurate out of both current locations, would Pennsylvania-based Unisys Corp., effort to expand the program’s and dangerous,” Mr. have too much duplication to avoid which has operations at only one reach. Steinhardt says. job losses. airport, and Washington state- “Think about it: a privacy-pro- The three companies “There would be a glut of based Saflink Corp., which expects tected biometric card that will deny there is any danger. crossover channels that would have to announce its first location in the get you expedited treatment at all Cost is a concern,how- to be streamlined,”says David Katz, next few weeks. Both are compet- kinds of security bottlenecks,” Mr. ever. Performing back- who oversees the television and ra- ing to get into New York. Federal Brill says. ground checks and maintaining se- does not expect Verified to be prof- dio department at talent agency rules require that the cards issued by Not everyone is thrilled about curity infrastructure is expensive, itable for another two years. Don Buchwald & Associates. one company be accepted by the the idea. and none of the companies is mak- other two. “It’s going to create a class sys- ing any money. In fact, Mr. Brill COMMENTS? [email protected] COMMENTS? [email protected]

February 26, 2007 | Crain’s New York Business | 3 IN THE MARKETS HIGHLIGHTS REEL Grounded JetBlue likely +0.1% to take off again soon The Bloomberg/ Crain’s New Calyon Securities in his latest research it Suisse airline analyst Daniel McKenzie York Index Bad weather, lousy note on the company. He rates the stock said in a recent research note. He main- rose 0.1% management exact toll, an “add,” insisting that the Valentine’s tains an “overweight” rating on the stock. over the last Day massacre and its Behind such opti- five trading but stock is cheap aftermath will have no mism is the surprising days to ➡ long-term impact on news that there has close on profitability. been no decline in Friday at BY HILARY POTKEWITZ Mr. Neeleman bookings. It also ap- 397. The puts recovery costs at pears that JetBlue’s ef- S&P 500 Index fell he worst seven days in upward of $30 million forts to add staff to 0.4%, David Neeleman’s life ended over the next year— better cope with future closing at last week with the JetBlue about half of which crises will not materi- 1451. chief executive making a will be in the form of ally increase costs. Mr. blizzard of public appear- ticket vouchers dis- Neeleman notes that RISERS Tances to explain how one not-so-huge tributed as peace of- much of his response 5-DAY 1-MONTH 3-MONTH CLOSING storm had managed to trip up his airline ferings to stranded will consist of training % CHANGE % CHANGE % CHANGE PRICE and to vow that it would not happen passengers. “We’re hundreds of existing Warner Music +12.3% -8.0% -24.0% $20.34 again. not required to do this employees in cross- Investors’ response: Not good enough. by our contract of car- functional roles. Medco Health +8.7% +18.3% +40.6% $67.39 Worried over the stain on JetBlue’s once- riage, but we just Meanwhile,the air- Great A&P +7.9% +8.6% +16.4% $31.07 stellar reputation and fearing the high cost think it’s good busi- line can continue with Market cap $2.3 billion Int’l Securities Exchange +7.4% +11.8% -9.8% $49.71 of setting things right, they bolted. The ness,” he says. the somewhat down- Marvel +7.3% +10.4% +5.9% $30.91 shares ended the week on Friday at That’s an expensive Estimated 2008 P/E 18.0 scaled expansion plans $13.08,off 6% in the last five trading days. gesture for an airline it unveiled last year. In Fleet size 124 planes With the stock of the Queens-based that posted fourth- December, JetBlue de- SINKERS carrier trading 24% below its January quarter earnings of layed purchasing sev- 5-DAY 1-MONTH 3-MONTH CLOSING highs, this is a great time for investors to $17 million.Mr.Neidl eral jets as it retooled its % CHANGE % CHANGE % CHANGE PRICE get back on board. JetBlue, valued at a forecasts 2007 earnings at 41 cents a share, route expansion, which in the previous G-III Apparel -12.2% +5.5% +27.8% $21.77 puny 18 times next year’s anticipated per- down only modestly from his prestorm es- months had seen the carrier add destina- Moody’s -6.1% -6.8% -3.6% $67.43 share earnings, looks like a real bargain timate of 44 cents a share. JetBlue posted tions in Florida and Mexico. Such cost- compared with discount kingpin South- a per-share loss of one penny last year. cutting measures met with Wall Street ap- Lehman Brothers -5.1% -4.2% +1.6% $79.04 west Airlines, which trades at 25 times This year, revenues are expected to hit proval and helped rally the stock to its Merrill Lynch -4.9% -6.7% -3.5% $89.04 2008 per-share earnings. $3 billion, up almost 30% from 2006. January high. Knight Capital -4.1% -12.3% -9.7% $16.56 “JetBlue has been overly penalized,” “JetBlue’s outlook is better than man- writes Ray Neidl, airline analyst with agement leads investors to believe,”Cred- COMMENTS? [email protected] BREAK STOCKS TO WATCH ANOTHER THROUGH Investors cheer Primedia’s farewell to old media as company goes modern WITH THE LAST of its once-proud passel of glossy magazines on the block, Primedia stands on the verge of completing its reinvention. The company has sold off the old and snapped up new media, becoming the largest online lister of rental properties, among other things. Thrilled investors have pushed the shares up 43% this year. Imagine how pleased they’d be if Primedia hadn’t sold About.com two years ago. Since Liz Claiborne reported a big earnings drop in July, the fashion firm’s highly respected chief executive has handed the reins to an industry outsider—and the shares have soared 38%. New CEO William McComb— formerly of Johnson & Johnson—recently hired the co-host of Project Runway to be his creative director. Next week, Mr. McComb is expected to announce the first earnings gain in four quarters, a 27% jump. Nice start. It pays to share. Last week, General Maritime—owner of the nation’s third- largest fleet of oil tankers— announced a special $15-per-share dividend, and the shares soared. They We’re building a bigger nest. ended with a 13% five-day gain. Ropes & Gray LLP Management said it was keen to Look for Ropes & Gray at our new location in New 1211 Avenue of the Americas share the wealth. That sure beats York in early 2007. It’s where we’re ideally positioned New York, NY 10036-8704 buying more boats. Weak oil markets to serve a growing clientele. It’s where we’ll continue T 212.596.9000 • F 212.596.9090 ropesgray.com have torpedoed tanker demand. The providing world-class legal service, solutions and success for our clients. Baltic Dirty Tanker Index (of demand) is down nearly 40% from a year ago. charts: lindström bekka

4 | Crain’s New York Business | February 26, 2007

McDonald’s Corporation NEW YORK,NEW YORK edited by Valerie Block February 26- March 4

Bombay Talkie a national phenom ip chelsea eatery Bombay Talkie, which serves Indian street food amid a slick decor, is Sunitha McDonald’s USA LLC, Hlooking to go national. Founder Ramaiah (right) is in talks with major firms like Brinker Real Estate Development NY/NJ/CT Metro Area: Family Restaurants and Darden Restaurants about franchising her concept. Site Criteria: After operating for three successful years on Ninth ● Land Area: 41000+/- Square feet ● Building area: 2,800- 5,300 square feet Avenue, Ms. Ramaiah believes her idea has legs. And ● Building height: minimum 22 feet she has done her homework.The Asian food business ● Corner to Corner wrap with signage on major grew more than 3.6% last year, to $5.6 billion, says the streets former lawyer, adding that no one has filled the casual Indian dining niche. ● Signalized intersection “Bombay Talkie is the only operator growing a national chain of Indian-themed ● On-site parking restaurants,” says the 36-year-old entrepreneur.The eateries will cost about $300,000 each ● 25 feet of frontage if in-line location to launch, Ms. Ramaiah says. ● Urban sites: 3200. SFT corners preferred Her plan includes branching out to Chicago, Los Angeles and San Francisco, but she’s Contact: also looking closer to home. She’s set up a meeting with hot hotelier André Balazs to pitch McDonald’s Corporation him on putting a Bombay Talkie into his William Beaver House in lower Manhattan. Other NY Metro Real Estate Dept. downtown locations are being considered as well. Karen Hedblom [email protected] tome while promoting his first, P: 973-287-1408 Chodorow’s BOTTOMS UP Wall Street Journal best seller The unrough justice Power of We. During the book BROOKLYN BREWERY tour, Mr.Tisch says fans restaurateur Jeffrey Chodorow celebrates the constantly asked him how to knows the sting of bad reviews, so develop repeat customers. he promises not to give them on launch of its first The author is just warming up. his new chod-o-blog. Belgian-inspired A third book is expected to The mercurial magnate, who ale next summarize what Mr.Tisch has owns 24 restaurants, took out a gleaned from interviews with like- full-page ad in The New York week. minded CEOs such as Richard Times last week to rant about Parsons, Mort Zuckerman and Barry Weiser is pleased to announce that critic Frank Bruni’s scathing take on Diller as the host of Open Exchange. his recently opened Kobe Club. quietly reclaims its sites from The talk show is seen on Plum He says he now plans to stalk Mr. iVillage, which NBC purchased TV, a channel featured in Stuart A. Bruni through his blog. last year. exclusive resort areas, including “If Bruni writes a bad review, At a time when advertisers are Aspen and the Hamptons. Nussbaum, CPA I’ll go to the restaurant,” Mr. moving money from print to the “They all have such compelling Chodorow says. “If I agree with Web, Hearst is pouring millions stories, and I’ve learned a lot about has been admitted into the partnership. him, I won’t say anything. But if I of dollars into the relaunches, how they became successful,” Mr. disagree, I’ll comment.” doubling its online editorial staff Tisch says. Until recently, Mr. Chodorow, and building an in-house team of whose spat with former partner designers and sales reps. New York City Rocco DiSpirito made for months “When this group was formed Viva four-star 135 West 50th Street of gossip-page fodder, didn’t even a year ago, there was no New York, NY 10020 restaurants Tel 212.812.7000 Mr. Nussbaum possesses over read blogs. infrastructure in place. Everything “It’s new for me,” he says. “I had been outsourced,” says Chuck apparently, there is more to Fax 212.375.6888 15 years of experience providing know that I need to keep up.” Cordray, vice president of Hearst Vegas than what stays in Vegas. Long Island accounting, auditing, and consulting 3000 Marcus Avenue Magazines Digital Media. “We R&R Partners, the ad agency that Lake Success, NY 11042 services to business enterprises, started with a clean slate.” created the “What happens in Tel 516.488.1200 particularly those in the apparel and Hearst focuses Teenmag.com relaunched first, Vegas…” tourism campaign, is Fax 516.488.1238 accessories, wholesale/distribution, followed by Esquire.com last looking beyond the naughty Westchester publishing, and not-for-profit on sites’ revamp week. Cosmogirl.com and pleasures of the gambling capital 660 White Plains Road Tarrytown, NY 10591 industries. He regularly consults in something of a turnabout, Seventeen.com are on deck for the to focus on the city’s fine dining. Tel 914.333.0555 with clients with regard to issues Cosmopolitan.com is on the first week of March.The big Foodie magazine Bon Appétit Fax 914.333.0556 such as budgeting and forecasting, receiving end of a makeover— kahunas, Cosmopolitan.com and will help out by hosting its first New Jersey operations assessment, internal along with a dozen or so other GoodHousekeeping.com, will be Las Vegas festival in May.The 399 Thornall Street Hearst Magazines sites.The new the last to get remodeled. four-day fete will feature offerings Edison, NJ 08837 controls, benchmarking, inventory Tel 732.549.2800 management, and product looks come as the publisher from celebrity chefs, wine tastings and a John Legend concert. Fax 732.549.2898 profitability. Hotel exec finds R&R considered event www.weiserLLP.com proposals from the top three backup gig epicurean titles, including hospitality hotshot Jonathan Gourmet and Food & Wine, but Mr. Nussbaum can be reached Tisch is about to celebrate the Bon Appétit won the bake-off. As at 212.375.6828. release of his second book. part of the deal, the magazine will Chocolates on the Pillow Aren’t get a needed bump in ad pages— Weiser LLP Certified Public Accountants Enough: Reinventing the Customer as many as 30 over the course of a Experience, will hit stores on March year, according to Publisher Paul 9, published by John Wiley & Sons. Jowdy. Ad pages for the Condé The chief executive of Loews Nast title fell 2% last year and Hotels got the idea for the second were down 4% in January. ■

6 | Crain’s New York Business | February 26, 2007

HIGH NOTES Music companies’ 2006 market share. Music labels hiring a new breed of leaders 31.7% Continued from Page 1 players,have become rare commodi- “You’ve definitely gotta hire chops is long overdue. Universal Music Group Universal Music Group,owner of ties in the business. It shows. someone who’s going to bring a lit- “You never see these executives Island Def Jam, was also the compa- Overall album sales in 2006 were tle more content to what people are out in the streets or clubs where they 27.4% ny that began the movement to bring down 1.2%, to 646.4 million units, doing nowadays, because if you can find new talent,”says Mr.Dupri. Sony BMG more creative types into the execu- compared with 2005’s 654.1 million, don’t, you’re going to be pushed out “They can’t say that about me.” tive suite: It named rapper/producer according to Nielsen SoundScan— of the race,”says the 34-year-old,di- Return to roots 18.1% Shawn “Jay-Z” Carter chief execu- despite a dramatic rise in legal digital amond-decked Mr. Dupri, who was Warner Music Group tive of Def Jam Recordings a little downloads. Analysts predict that the president of Virgin’s urban music the move to give music makers over two years ago. market will weaken further this year. division until he quit in October. more power represents a return to the The trend continued when RCA Of course, artists and producers industry’s roots. Berry Gordy, 10.2% Music Group hired TVT Records Seeking steady flow of hits aren’t always as talented on the op- founder of Motown Records, was a EMI Music hitmaker Bryan Leach as senior vice big music conglomerates are fo- erations side. To function best, they producer and A&R man first.Jimmy president of urban music. Rumors cused on finding more ways to make need to be paired with individuals Iovine, founder and CEO of Inter- 12.6% broke last week that Columbia money with digital platforms. who have more management expe- scope, is still an active rock music Independents Records is negotiating to sign hirsute Meanwhile, talks of a merger be- rience. producer, while Antonio “L.A.” Source: Nielsen SoundScan überproducer Rick Rubin as CEO. tween Warner Music Group and “Creativity and parsing the bot- Reid—CEO of Island Def Jam, and “It’s no accident that labels are troubled music giant EMI are creat- tom line are often mutually exclusive Mr.Dupri’s new boss—started out as hiring producers,” says Aram Sinn- ing some buzz on Wall Street. But skills,” says Brian Garrity, senior a drummer,producer and songwriter. happening,” says Rob Stone, presi- reich, co-founder of media analyst label executives now realize that the business correspondent at Billboard. As the season for executive mu- dent of Cornerstone, a promotion Radar Research in Los Angeles. upside from digital sales and consol- “You need to match [the creative sical chairs continues at the major company that works closely with “These guys have the sense to stay idations can stretch only so far with- types] with the right people.” labels, industry observers aren’t rul- major music labels. “There’s so on top of market changes and make out a steady flow of hits. In the past two decades, the ta- ing out more appointments like Mr. much entrepreneurship in urban music to deliver sales.” Because of that growing aware- bles turned too far in favor of the Dupri’s.Hip-hop producers,in par- music, it only makes sense to take People with golden ears like Mr. ness, they’re giving young creative bean counters. The recent move- ticular, are maturing and coming that to the next level.” Dupri’s or Mr. Rubin’s, once a de types like Messrs. Dupri and Carter ment to balance operations execu- into their own as executives. rigueur asset among top industry increasing control. tives with peers who have musical “These moves will definitely be COMMENTS? [email protected]

pipeline would cost twice that Mr. Coleman points out that amount. getting more federal funds is not the Cash crunch hits housing plans The HFA has $290 million in only solution,since developers of af- funding left over from last year—a fordable housing can draw on other Continued from Page 1 able—has surged in the past several projects. In addition, there’s been far cry from the $1.4 billion surplus funding resources aside from tax- opers applying for the money. months. Most 80-20 projects are fi- enormous activity at the Hudson that it carried for the previous four exempt bonds. The agency was aiming to send nanced with state-allocated tax-ex- Yards and West Chelsea, which or five years. The agency estimates out letters to the development com- empt bonds, which are funded by were rezoned to offer special incen- that it will receive another $200 mil- ‘A challenge of success’ munity as early as Friday to out- grants from the federal government. tives to developers constructing 80- lion to $300 million from the feder- “while clearly the tax-exempt line the policy changes. The most 20s in those neighborhoods. al government for 2007. bonds are important, they are not significant modification will be a City and state officials have been the only way,” he says. limit on the tax-exempt financing The agency will Projects cost more lobbying Washington for an in- “This problem is a challenge of available for any one project. Ac- also spurring developers are crease in the federal allocation. success,” Mr. Coleman continues. cording to one official familiar with cap tax-exempt changes to a city tax-abatement “We have been working with our “It is a sign of the strength of the af- the plan, the agency may set the cap program that are set to kick in at the colleagues in the affordable housing fordable housing market.” at $1.5 million per affordable unit. financing for end of the year: Going forward, in community and the New York dele- As for those developers who are In addition,for the first time,the most parts of Manhattan, only de- gation on Capitol Hill to see what counting on HFA financing for cur- state agency will look at a develop- any one project velopers that build 80-20s will be el- changes can be made on a federal rent developments, Ms. Almodovar er’s readiness to begin a project, and igible for this abatement. level,” says Neill Coleman of the says she will give those projects the length of time that rents of des- Beyond the huge demand for city’s Department of Housing some leeway. ignated affordable units will remain bonds, another pinch on the HFA’s Preservation & Development. “I am sympathetic to certain below market rate. It will also check funding is the ever-increasing cost Among the city’s possible allies deals that are already far along,” she whether the city government has of- Demand for 80-20s has been of land and construction, which has in Washington are Democrats Rep. says. “We are changing the rules in fered subsidies for the project. driven by a number of factors over driven up the cost of 80-20 projects. Charles Rangel, who chairs the the middle, which is by necessity, The number of developers look- the past six to eight months—in The largest development the agency House Ways and Means Commit- but we want it to be as smooth a ing to construct so-called 80-20 particular, the softening condo- ever financed was a $250 million, tee, and Sen. Charles Schumer, who process as possible.” buildings—in which 80% of units minium market, which has in- two-building project in Manhattan is on the Senate Housing and Urban are market-rate and 20% are afford- creased the attractiveness of rental in 2005. Most projects now in the Affairs Committee. COMMENTS? [email protected] Chinese, yoga for preschoolers Continued from Page 2 smaller outpost in Park Slope, we could if we wanted to.”The mag- Manhattan had 31% more kids un- Brooklyn. azine has converted from a quarter- der 5 in 2005 than in 2000, accord- “The growth feeds on itself,”says ly to a monthly,and circulation is up ing to the Census Bureau; Brooklyn Drew Kristof, managing editor of 74%. and the Bronx had 7% increases in GoCityKids.com. “As more oppor- that age bracket.The jump in Man- tunities arise, more businesses take Employment booms hattan has produced a record num- advantage of it, and other business- citywide, the expansion of pro- ber of kid-oriented centers, includ- es see their success and jump in.” grams has contributed to the dra- ing about 50 in TriBeCa alone, Evidence of the boom abounds. matic increase in a broad employ- according to Marisa Fariña, pub- Six–year-old GoCityKids.com’s ment category that includes

lisher of Time Out New York. growth in New York has outpaced extracurricular education and pri- lindström bekka that in its 19 other urban markets. vate vocational training. Such jobs Saturation possible Two-thirds of the site’s listings are stood at 35,000 last year—up 50% the time,” Ms. Howey says. Super Soccer Stars instructs the market’s extraordinary ex- educational offerings. since 2000. Apple Seed, a one-stop center in 3,500 kids a week, some as young as pansion could result in its quickly Noting the trend, the 92nd Those numbers don’t cover the the Kidville mold, will open soon in 2. Launched in 2000, the $3.4 mil- reaching a saturation point. As hap- Street Y last fall put all its programs many retail businesses offering edu- the Gramercy Park-Flatiron area. lion business has expanded to more pens in any high-performing indus- for small kids under a single umbrel- cational programs. Habana Out- The four founders all have young than 60 New York locations and is try, many businesses are entering la; enrollment spiked 34%. post,an “eco-eatery”in Fort Greene, children and live in the neighbor- starting to franchise nationally. this one, following the lead of out- More than a third of the listings Brooklyn,offers kids free classes,in- hood. Witnessing the explosion of “When I founded this company, fits like Kidville. Its two Manhattan in Time Out New York Kids are for cluding ones on the environment. families in the formerly commercial I had no idea it would grow this locations had more than $10 million extracurricular educational activities. Attractions at Locks ’n’ Lads, a kids’ district, they seized on the opportu- fast,” says owner Gustavo Szulan- in revenues in 2006, its second year “When we launched, we couldn’t hair salon in the East Village, in- nity to create the business, which sky.“I want to keep this pace.” in operation. The company is also have filled our issues with classes,” clude yoga instruction. will launch with a 15,000-square- about to announce the launch of a says Editor Noelle Howey. “Now, “We hear about these things all foot facility. COMMENTS? [email protected]

8 | Crain’s New York Business | February 26, 2007 REAL ESTATE DEALS

1,200 minority students, 97% of their catalog business,” says Ariel whom went on to graduate. Schuster, a Robert K. Futterman & Jackie Robinson museum Negotiating the lease at the Associates broker who represented building, at the corner of Varick and Coldwater Creek in the deal. Canal streets, took more than a year The property owner, The Impe- because of city approvals that are re- rial House, considered several other finds home in TriBeCa quired to put a museum on the site. publicly held retailers, including Landlord Trinity Real Estate, an J. Crew and Ann Taylor, to fill the um on the ground floor and 20,000 arm of Trinity Church, represented vacancy. It chose Coldwater Creek Foundation signs square feet of foundation office itself. because the company “has a terrific lease for Trinity space on the second floor. The lease Buildout is set to begin in April, balance sheet,” says Jonathan West, allows for several extensions and ex- with a tentative opening for at least president of managing agent property; Manhattan pansions. The asking rent on the the offices set for July or August. Charles H. Greenthal Co. “They ground floor of the building, also There is no target opening date for were willing to invest to build it gets Coldwater known as 75 Varick St., is $60 a the museum yet. out.” square foot. —julie satow He says asking rent was about nonprofit started by “We were hired in 2003 to find $300 a square foot for the ground Jackie Robinson’s wid- them this space, and we did a lot of floor. The space comes with a ow over 30 years ago to due diligence to make sure the foun- Coldwater Creek 4,800-square-foot basement. provide college schol- dation got everything they were streams into NYC Coldwater Creek, based in arships and mentoring looking for,” says Jason Greenstein, Sandpoint, Idaho, plans to spend Aprograms for minority students is a broker at Newmark Knight Frank women’s clothier Coldwater more than $100 million opening 65 opening a museum in Manhattan. who represented the tenant. Creek has signed a 20-year lease for stores across the country in 2007. The Jackie Robinson Founda- Among the requirements were its first Manhattan location, at 1172 Executives expect the business to gettyimages tion has signed a 20-year lease at LEGEND: Thousands of tourists and schools affordable rent, street visibility and Third Ave., between East 68th and generate more than $1.2 billion in 1 Hudson Square for the Jackie Robin- kids are expected to visit the center. easy access for the thousands of East 69th streets. sales this year. son Museum and Education Cen- tourists and schoolchildren expect- An Eddie Bauer store occupied The retailer sells misses, petites ter, which will showcase the history ed to flock to the museum. the 9,200-square-foot space until and plus-size apparel,as well as jew- of the baseball great. pearance on Ebbets Field as the first The project is the result of a January. Coldwater Creek will open elry and accessories. It already has a The 30,000-square-foot space is African-American to play Major $20 million fund-raising effort by there in the fall. store in Staten Island and one in set to open later this year—the 60th League Baseball. The facility will the foundation, which has provided “They chose the Upper East Side Queens. anniversary of Mr. Robinson’s ap- include a 10,000-square-foot muse- college scholarships to more than because they do very well there with —elisabeth butler

Comptroller faces financial test CONTACT INFORMATION THE CRAIN’S BEAT SHEET Continued from Page 1 ers and—politically at least—by the that allows him to take even more 150 legislators who voted for Mr.Di- EDITORS SAMANTHA MARSHALL chances. Napoli. If the fund’s returns lag, lo- SENIOR REPORTER The fund pays retirement bene- calities would have to contribute GREG DAVID e-mail: [email protected] fits for some 995,000 state and local more money.That would unleash the EDITOR Covers education, and international workers.If Mr.DiNapoli fails to gen- most potent catalyst in local politics: e-mail: [email protected] business and trade. erate a high return,taxpayers will have rising property taxes. Pressure would In charge of all editorial operations to make up the difference. Justly or be put on the comptroller to make for the paper and related products. ANNE MICHAUD SENIOR REPORTER not, they will blame Mr. DiNapoli, a quick fixes that are not necessarily in RICHARD BARBIERI e-mail: [email protected] man they’ve been told is unqualified. the long-term interests of the fund. MANAGING EDITOR Covers politics and government, “He faces a greater risk than the It’s happened before and will e-mail: [email protected] works on Crain’s Insider newsletter. average comptroller that he’ll be happen again, observers say. State Oversees paper’s day-to-day functions. criticized for lower returns, even if law demands that the pension fund JULIE SATOW they’re caused simply by larger mar- annually return 8%, a highly opti- CYNTHIA RIGG SENIOR REPORTER PROJECTS EDITOR e-mail: [email protected] ket forces,” says Diana Fortuna, mistic number that requires the e-mail: [email protected] Covers commercial real estate. president of the Citizens Budget fund to do what few investors can— Edits special reports.

Commission, a watchdog group. beat the market. To that end, Mr. ap images MIRIAM KREININ SOUCCAR “Given the circumstances of his tak- DiNapoli’s predecessor, Alan Hev- VALERIE BLOCK SENIOR REPORTER STOCK ANSWER: Thomas DiNapoli will be DEPUTY MANAGING EDITOR ing this position, there will be extra esi, sought and received legislation blasted if pension fund performance lags. e-mail: [email protected] e-mail: [email protected] Covers the business of arts and culture. scrutiny of his decisions.” allowing more pension money to be Edits “New York, New York” put into “alternative investments”— column and other stories. BARBARA BENSON Fresh look high-risk, high-return vehicles like dean of the College of Liberal Arts REPORTER mr. dinapoli is reviewing all as- private equities and hedge funds. and Sciences at SUNY New Paltz ERIK IPSEN e-mail: [email protected] pects of the 2,400-person office,and Mr. McMahon says that will be a and an expert on state politics. He DEPUTY MANAGING EDITOR Works on Health Pulse newsletter. everything is subject to change, a great temptation for Mr. DiNapoli. says when returns dip and localities e-mail: [email protected] Edits small business columns ELISABETH BUTLER spokesman says. But where the so- “Because he’s under a magnifying have to pony up,“they put pressure on and special reports. REPORTER called Common Retirement Fund is glass, he’ll be chasing extra-large re- the Legislature and the governor, e-mail: [email protected] concerned, some believe the new turns,which you can only get by tak- [who] put it back on the comptroller. REPORTERS Covers retail and apparel. sole trustee should change nothing. ing on extra risk,” he says.The pres- It’s a very demanding situation.” “The best thing a comptroller sure will increase further in the years AARON ELSTEIN ERIK ENGQUIST SENIOR REPORTER can do,if the fund is doing well,is to ahead because the fund will be spit- Professional help REPORTER e-mail: [email protected] e-mail: [email protected] leave it alone,” says E.J. McMahon, ting out pension checks to a balloon- while the comptroller himself Covers Wall Street. Covers politics and government, director of the Manhattan Insti- ing number of retired baby boomers. is held accountable for the fund, he works on Crain’s Insider newsletter. tute’s Empire Center for New York For decades,government pension actually has a cadre of professionals LISA FICKENSCHER State Policy.“The only thing comp- funds were conservatively invested. who manage it. Mr. DiNapoli, who SENIOR REPORTER AMANDA FUNG trollers tend to do is muck it up with That changed in the last 20 years,and assumed his post Feb. 7, will likely e-mail: [email protected] REPORTER Covers tourism, restaurants, hotels. political decisions.” some comptrollers came to be per- leave them in place. e-mail: [email protected] Covers technology and telecom. Mr. DiNapoli and the Legisla- ceived as star investors. Mr. Hevesi “The day-to-day investment de- MATTHEW FLAMM ture have endured blistering criti- certainly was, before a felony convic- cisions are not something he gets in- SENIOR REPORTER HILARY POTKEWITZ cism from Gov. Eliot Spitzer, who tion forced his resignation.The fund volved in,” Mr. McMahon notes. e-mail: [email protected] REPORTER shamed lawmakers for trusting the has returned 9.6% annually over the “He’s not sitting there with a Covers media and entertainment. e-mail: [email protected] pension fund to a financial amateur. last 10 years, compared to 8.4% for Bloomberg machine on his desk.” Covers legal issues and transportation. TOM FREDRICKSON Newspaper editorial boards joined the five major city pension funds. But Mr. DiNapoli does have a SENIOR REPORTER GALE SCOTT the cry. Reacting to the rhetoric, The state pension fund’s perform- telephone. And if he doesn’t live up e-mail: [email protected] REPORTER state retirees began voicing concerns ance temporarily relieved local gov- to the lofty expectations, it is sure to Covers the banking and energy e-mail: [email protected] about their future pension checks. ernments of their obligations to con- start ringing. industries and the New York Covers hospitals and insurers, But their pensions are guaran- tribute to the fund.“That becomes an economy. works on Health Pulse newsletter. teed.The real risk is borne by taxpay- expectation,” says Gerald Benjamin, COMMENTS? [email protected]

February 26, 2007 | Crain’s New York Business | 9 VIEWPOINT IBO’s steps toward tax sanity editor in chief Rance Crain t is a truism that combined state and local taxes foot a significant portion of the cost of Medicaid drives a publisher Jill R. Kaplan throughout New York state are the highest in the good part of the need for higher taxes here. Most other large EDITORIAL editor Greg David nation.That unfortunate fact obscures an even cities don’t have to bear that kind of Medicaid expense. managing editor Richard Barbieri more important problem—the particularly ● The city’s high taxes are not necessary to compensate for low projects editor Cynthia Rigg deputy managing editors Valerie Block, onerous burden faced by taxpayers in New York state taxes. The IBO study—shattering an often-repeated Erik Ipsen City. A report issued last week by the Independent myth—finds that the state burden imposed on New York columnist Alair Townsend senior reporters Aaron Elstein, Budget Office details how much higher taxes are City residents is 6% greater than the average for the other Lisa Fickenscher, Matthew Flamm, in the city and how they got that way. It has already served to large cities. Tom Fredrickson, Samantha Marshall, Anne Michaud, Julie Satow, ● renew the discussion of whether the city can really afford to Other cities whose residents can afford such high taxes don’t Miriam Kreinin Souccar I Barbara Benson, Elisabeth Butler, continue this state of affairs. impose them. While everyone recognizes the size and wealth reporters Erik Engquist, Amanda Fung, Hilary Potkewitz, The report, which compares New York with the eight of New York City, several other big cities actually boast Gale Scott other largest U.S. cities, attempts to provide a sophisticated higher per-capita restaurant critic Bob Lape art director Steven Krupinski analysis of a highly charged topic.The IBO study updates incomes than New deputy art directors Carolyn McClain, work that the office did nearly a decade ago, and it makes a The mayor York. Most of them Daniel Mednick staff photographer Buck Ennis number of critical findings. assumes New have relatively low tax copy desk chief Wendy Zuckerman ● The extent of the tax burden in the city is startling. The IBO copy editors Michele Arboit, Leslie Jay, burdens. Thaddeus Rutkowski calculated so-called tax effort—the ratio of tax collections to Yorkers don’t Since taking office, research editor Denise Southwood taxable resources.The office found that the combined state Mayor Michael associate research editor care about costs Adrianne Pasquarelli and local tax effort in New York City is 47% higher than the Bloomberg has pursued www.NewYorkBusiness.com online editor Catherine Tymkiw average for the other cities.The local tax portion alone is policies based on the online reporter David Jones 90% higher than the average. In actual dollars, residents of assumption that New EDITORIAL AND ADVERTISING OFFICES New York City pay $14 billion more a year in state and local Yorkers do not 711 Third Ave., New York, NY 10017-5806 taxes than the average for the other cities, and $9 billion editorial: 212.210.0277 Fax 212.210.0799 fundamentally care about costs, and particularly taxes, advertising: 212.210.0259 more than residents of second-place Philadelphia. because the city is such a desirable location.The Cable craincom nyk ● The reasons for the disparities in tax burdens are easy to administration has softened that position in recent Fax 212.210.0499 Entire contents ©copyright 2007 Crain explain. New York City levies all the taxes that most large months—it proposed a $1 billion property tax cut, much of Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP cities use to raise revenue, and then imposes an outsized which would benefit businesses—but it has not changed its Inc., used under license agreement. income tax on both individuals and businesses. Virtually no fundamental orientation. TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. other city operates a progressive tax system like New York’s. Of course, businesses and individuals make decisions about $3.00 a copy, $59.79 one year, $109.79 two years. The result is that income tax levies in the city are seven times where they will locate based on many factors. But taxes play www.NewYorkBusiness.com greater than the average for other large cities. a role, and the IBO’s findings should spark more research, ADVERTISING AND MARKETING At the same time, the state’s requirement that localities and more debate, about exactly how important they are. advertising director Vanessa Cognard business development manager Robert N. Grossman senior account managers Holly A. McKeown, William E. Squitieri account executives Andrew Carlin, Derek Reese, Jennifer Siniscalchi, Brigitte Stieglitz western account manager Rules are different for the big boys Ellen Mazen (Los Angeles) 323.370.2477 sales manager, classified print & online John Gallagher t is no surprise that regulators never nail top ex- common for someone prominent to don’t know why that is.” newsletter product manager ecutives at the major securities firms, despite a long list have someone intervene on their No fewer than three of Mr. Catherine Evans Gittens behalf,”he told the SEC’s inspector Aguirre’s former SEC colleagues— sales coordinator, print & online of scandals.A recent congressional probe provides some general. all experts on trading cases—agree Lulé Haznedari sales coordinator Anita Perrino insight into how this works.The Senate has been look- Mr. Kreitman said he had to re- that Mr.Mack should have been in- credit Pat Grondziak 313.446.6082 ing into the case of former Securities and Exchange trieve correspondence sent to Ms. terviewed sooner rather than later. marketing coordinator Jill H. Bottomley Commission lawyer Gary Aguirre, who claims that he was Thomsen by Ms. White. In addition to Mr. Ribelin, for- circulation manager Andrea Richardson I Eric Ribelin, an SEC market mer SEC investigator Hilton Foster general manager, interactive fired after demanding in 2005 to interview John Mack, who surveillance branch told Dow Jones, “Gary Marc Minardo chief, said Mr. Hanson Aguirre is one of the best was set to become chief executive of Morgan Stanley,about an NEW YORK PRODUCTION had told him that “be- investigators there is.” production and pre-press director insider trading case. Mr. Aguirre sors about the case.” cause Mr. Mack was a Joseph Cella, chief of Michael Corsi claims his superiors balked at going Mr. Hanson said he had no in- prominent person ... the SEC’s market sur- advertising production manager up against such a powerful Wall tention of backing off but that con- we would have to be veillance unit, told the Marilyn DeMilta Street player. fronting Mr. Mack required extra careful about taking his Senate that he sees no PUBLISHED BY CRAIN COMMUNICATIONS INC. Sure enough, last fall, the SEC preparation and efforts to keep his testimony.” reason why Mr. Mack’s chairman Keith E. Crain dropped the case—which involved own bosses in the loop. Mr. Ribelin had testimony should have president Rance Crain Pequot Capital Management Inc. But SEC officials were already told Mr. Hanson that been delayed. secretary Merrilee Crain of Westport, Conn.—for what the in the loop. Mr. Aguirre told a Sen- the SEC could call Mr. The executive was treasurer Mary Kay Crain agency says was lack of evidence. ate committee that documents he Mack and just ask “a finally questioned last executive vp, operations William Morrow Mr. Aguirre’s former boss, SEC subpoenaed from Morgan Stanley couple of basic ques- summer, but Mr. senior vp, group publisher Gloria Scoby DAN group vp, technology, circulation, branch Chief Robert Hanson, who that should have come to him were tions”—something Aguirre was long gone, manufacturing Robert C. Adams was partly responsible for his dis- instead sent directly to SEC en- Mr. Aguirre had also JAMIESON and the statute of limi- vice president/production & missal, told the Senate that he had forcement head Linda Thomsen by proposed. “Mr. Han- tations on possible manufacturing David Kamis known that Mr. Mack’s high-pow- Morgan Stanley’s lawyer, Mary Jo son didn’t respond,” charges had expired. corporate circulation director ered attorneys “would likely ... di- White, a partner at Debevoise & Mr. Ribelin testified. That’s quite the picture. But we Patrick Sheposh rectly contact my superiors about Plimpton in New York and a for- In addition, Mr. Ribelin said, have always known that the rules founder G.D. Crain Jr. (1885-1973) [taking Mr. Mack’s] testimony” mer federal prosecutor. “Mr. Aguirre was not allowed by are different for the big boys. chairman Mrs. G.D. Crain Jr. (1911-1996) and that “any influential counsel Ms. White is “very prestigious,” Mr. Kreitman to speak to [a de- Mr. Mack chose could easily pick said Mark Kreitman,assistant SEC fense] attorney about trying to get Dan Jamieson is a senior editor at Invest- up the phone and call my supervi- enforcement director. “It isn’t un- production of e-mails.To this day, I ment News, a Crain publication.

10 | Crain’s New York Business | February 26, 2007 CORNER RETAIL ON UNION SQUARE 23,121 SF. of retail space overlooking Union Square • Private ground level entrances on 17th Street/Union Square North my appearance after only a few uses. & Park Avenue South • High Ceilings I hope they send enough FREE patches. To solve hearing problems, I can get a 100% digital hearing aid that is preprogrammed to adapt to different noise environ- ments. I can save 42% on Energiz- er hearing aid batteries.In case I live with someone too proud to wear a Entire Second withFloor 14’ Approx. Ceiling 16,516 Height SF hearing aid, I can order TV EARS. TV EARS Possible entrance saved the with existing Second Floor marriage of Darlene and Jack B. in passenger elevator Approx. California. 4,200 SF My teeth are still good, but you 15’ 10” Sephora Sephora never know. Perhaps I should save East Building17thEntrance Street/Union Freight Square North Ceiling Height the card for free samples of Stain • 150’ frontage 2nd level Building Away and Kleenite for dentures. Lobby The cards about sleeping better SF. struck a chord with me. Poor sleep Rothmans • 125’ frontage 2nd level has been a problem for years. Dare I • Basement 2,405 hope that the answer could be a Ground Floor Sleep Number or Craftmatic Ad- Park Avenue South • 45’+ frontage ground justable bed? • Escalator or Elevator My prescription drug bills have For further information, please contact: Exclusive Leasing Agents: john h.john howard been mounting, so I was more than Ken Findley 212.400.9482 a little interested in FREE samples John Gols 212.400.9477 of tablets to relieve too-frequent Although all information regarding property for sale, rental, or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. trips to the bathroom, and fish oil pills that will improve memory and The breakdown concentration. I was assured that erectile dysfunction is routinely cov- ered by Medicare. Discount Senior on a big birthday Drugs of Cincinnati offered me a lowest-price guarantee on products PHOTO GALLERY such as Lipitor and Zocor. LISTINGS OF LOCAL EVENTS had a big birthday recently. I received more than There were many cards for prod- 40 UNDER 40 PROFILES AND PHOTOS ucts to combat creakiness and the TOP LISTS FOR BUSINESS LEADS the usual number of cards from family members and pain of movement. I can get flexible NY BUSINESS DIRECTORY friends. Through the magic of target marketing, I also Featherspring Foot Supports, the received a mailing of promotional cards for everything Moist Heat Therapy Pump and that may ail me now or one day soon. Pad, the Barlow Knee Support and LATE BREAKING VeinEase. When mobility becomes IThe cards offered a solution for every stage of the meltdown a serious problem, I can get a walk- that the senders anticipate for me. It was all there except in bathtub at a factory-direct price; LOCAL NEWS the Citia, which will take me up- RESTAURANT REVIEWS for the promise of a ments instead of making stairs in my Florida dream home LINKS TO MEMBERSHIP ORGANIZATIONS quantity discount on them! while I’m sitting down; and a Rascal INTERACTIVE ONLINE POLLS Depends. Could it get better or a Hoveround that will restore my SEARCHABLE ARCHIVES Starting with the than this? freedom to go places. COMPREHENSIVE INDUSTRY PAGES pleasant side of things— Now, about those All this provokes fear, but the the reward of easy liv- creeping infirmities. cards even covered that problem. I ing after decades of First, the wrinkles. can get ADT Companion Service THERE’S SOMETHING FOR hard work—there was There’s good news! It or Life Alert, allowing me to sum- EVERYONE AT an offer for information turns out I don’t need mon emergency help at the touch of about retirement in Botox, laser peels or a button, as well as Jitterbug cellular Florida. And, because other expensive facial service just for emergencies. “You’ve worked hard to ALAIR treatments. I can try, Finally, Lincoln Heritage Life own your own home,” TOWNSEND FREE, DermaGen guarantees Peace of Mind.It ® now my home can work Anti-Wrinkle Patches, gives CASH for funerals or other FREE Aeron Repairs* for me. I can get a re- which will bring out expenses,and it’s accepted by funer- verse mortgage. A nice bank will younger, fresh-looking skin. There al directors everywhere. by New York’s #1 authorized repair and service center. allow me to receive monthly pay- will be a significant improvement in Happy birthday to me. Your Aeron® or other chairs refurbished like new! TRADE-INS WELCOME CRAIN’S ONLINE POLL SHOULD REGULATORS APPROVE THE $13 BILLION MERGER OF SATELLITE RADIO PROVIDERS SIRIUS AND XM? New York City

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February 26, 2007 | Crain’s New York Business | 11 recession began early in Mr. Giuliani’s final year, before Sept. 11. After he left, the city raised BROOKLYN ELECTION People power property, income and sales taxes to THE RESULTS OF THE FEB. 20 CITY COUNCIL ELECTION in Brooklyn confirm the THE INSIDER plug a massive budget hole. power of health care workers union 1199 SEIU—combined with the preceding by Erik Engquist and Anne Michaud council member’s endorsement—to lift a candidate to victory in a working- class district. They also expose good-government groups, newspaper support Finance board and direct mail as non-factors. ready to push back Citizens Union co-endorsed Zenobia McNally and Wellington Sharpe, and Rudy the candidate gets religion at a city council hearing today, praised candidates Jesse Hamilton, Mo the Campaign Finance Board will Razvi and Joel Toney. All five were nsiders say that the fend off suggestions that it reform crushed by Dr. Mathieu Eugene, a its auditing practices. Critics have candidate conspicuously omitted by the presidential campaign of charged that the board’s audits are reform group. Dr. Eugene, backed by Rudy Giuliani (right) has too slow, exacting and harsh. 1199 and former City Councilwomen Yvette Clarke and her mother, Una I Government Operations gained momentum from Clarke, did not show up for his Citizens Union interview. His aides, who had positive early press, but they Committee Chairman Simcha Felder, D-Brooklyn, who will lead insisted he would come, later stopped returning the group’s calls. Yet Dr. wonder if that energy will be the meeting, has told CFB to Eugene received 34% of the vote, overwhelming nine other candidates. sustained past a March consider auditing a sampling of Mr. Hamilton, who finished fifth, was endorsed by The New York Times, but deadline for campaign campaign transactions, rather than his operation melted down as the Campaign Finance Board denied him matching funds, bills went unpaid and his campaign manager quit a week finance filings, when his every one. But the board will reject that notion. before the election. Direct mail also proved irrelevant: Mr. Sharpe sent out numbers may come up short. CFB Chairman Frederick A.O. eight quality pieces but finished third, with 12% of the vote. Mr. Giuliani is surely Schwarz Jr. is expected to testify that focused on the issue; an imposing an artificial time deadline or randomly sampling campaign and might want to weaken CFB access over the FDR Drive, which e-mail appeal last week transactions would undermine the audits. But apart from Mr. Felder, would require approval from the targeting Republican donors quality of audits, tempt candidates who is an accountant, many do not Spitzer administration. Says Mr. notes his lead in the polls and to skirt the rules and perhaps give understand the process because Garodnick, “As it presently stands, focuses on “my hero Ronald some campaigns an unfair their campaign treasurers typically there is little support in the advantage. handle it for them. community, if any” for Mr. Solow’s Reagan.” It includes no fewer Mr. Schwarz will also argue that plan, which would need the City bloomberg newsbloomberg than seven links to his its thorough auditing procedures Council’s OK. exploratory committee’s donation page. He also tries to play are necessary to ensure proper use Large families A spokesman for Mr. Solow’s on religious and patriotic feelings, evoking the Old Testament of public campaign funds. Scandals development company says that a involving the abuse of public funds, coming to NYC number of community concerns and World War II and proclaiming that this generation of such as the episode for which while housing advocates have been addressed and that Americans will “win the War on Terror.” former Councilman Sheldon Leffler forecast a shortage of residences discussions will continue, leading to was convicted in 2003, undermine well into the future, the Bloomberg a project that is “a welcome The former mayor takes credit deficit”—it was actually a projected support for the entire campaign administration sees some breathing addition to the neighborhood.” in his e-mail for “transforming the shortfall—“into a multibillion- financing program, according to room in its immigration crime capital of the country into dollar surplus.” Economists say a the board. projections. Its demographers the safest large city in America.” late ’90s Wall Street boom powered Many council members will be predict that the average family size Something fishy He also says that he turned “a the financial turnaround, but a running for higher office in 2009 of new residents will grow in the coming decades, because many about $31 million newcomers come from countries mayor michael bloomberg has where large families are common. been telling Coney Island As a result, the number of people stakeholders about a $31 million per apartment will increase, allocation to upgrade the New York meaning that 265,000 units will be Aquarium at Coney Island. But enough to house nearly a million apparently he’s been referring to new residents by 2030. previously budgeted money that HIRE In the past, planners budgeted was largely secured by other approximately one housing unit for officials, including City Council every three new residents. As it members, Rep. Jerrold Nadler and happens, current zoning allows for Brooklyn Borough President Marty the construction of 265,000 units, Markowitz. officials say. Still, the city plans Still, a council source says that future rezonings that will the mayor’s contribution was ACCURACY encourage apartment construction, substantial, whereas in the past, the to create some slack in the housing aquarium primarily relied on market. council members to dole out funding.The change highlights the Robert Half has been setting hiring standards for over 58 years. We not only Bloomberg administration’s new pioneered the concept of specialized financial recruitment, we’ve established a network of Standoff on focus on the redevelopment of over one million top finance and accounting professionals – each individually selected to Coney Island, and serves as a meet your hiring needs. In fact, by the time you finish reading this, we’ll have placed yet East Side response to complaints that the another financial professional in a new job. No kidding. demolition work is nearly com- aquarium is dated and that facilities So as it becomes increasingly difficult to find highly skilled finance and accounting plete at a nine-acre site just south in other cities outshine it. professionals, there’s only one recruitment company that meets your exacting hiring needs: of the United Nations headquar- Construction of a new shark Robert Half Finance & Accounting. Need more? A recent survey of Fortune 1000 companies ters, but a political agreement to tank and other work could begin in ranked Robert Half Finance & Accounting the number one provider of highly skilled pave the way for a major develop- June. ■ candidates for full-time positions by a 3-to-1 margin over our competition. So why wait – call ment appears far away. Robert Half Finance & Accounting today. And make the right hire. Right away. Guaranteed.* Developer Sheldon Solow has proposed erecting eight towers that community leaders— backed by freshman City Councilman Daniel Garodnick, D-Manhattan— consider too tall. Some of the buildings would be Midtown 212.983.1800 • Wall Street 212.480.4904 more than 600 feet high. roberthalf.com Locals want an

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component and a school, gettyimages in addition to waterfront AQUARIUM benefits from city’s focus on Coney Island.

12 | Crain’s New York Business | February 26, 2007 London.Fly to Then fly free* to Cancunor St.Croixor Hawaii or...

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*Free Award Ticket Taxes & Fees: The passenger and/or AAdvantage® member is responsible for all taxes and fees, including a Federal marketed codeshare and oneworld™ flights does not qualify for this offer. Award Ticket Terms & Conditions: Passenger traveling on tax of $3.40 per U.S. domestic flight segment per takeoff and landing; airport fees up to $18 per round trip in local airport charges; and award ticket may not accrue AAdvantage miles or earn miles toward elite-status qualification. Award tickets are valid for round-trip travel September 11th Security Fee of $2.50 per enplanement originating at a U.S. airport. For international/Puerto Rico/USVI destinations, within the United States (including Hawaii and Alaska) or between the U.S. and Canada, Mexico or the Caribbean on flights marketed additional taxes and fees up to $180 may apply. All award travel in conjunction with this promotion must be booked through AAdvantage and operated by American Airlines, American Eagle or AmericanConnection. Award ticket valid for travel from 2/1/07 to 5/31/08. Award Reservations at 1-800-882-8880 and requires payment of a $15 award-ticketing fee. This award cannot be booked on AA.com. Seats for ticketing must occur between 2/1/07 and 5/17/08. Changes to award tickets may be subject to a $100/145 CAD service fee. All changes award travel are subject to capacity controls and may not be available on all flights. Standard AAdvantage award terms and conditions must meet the restrictions applicable to the original booking. Once ticket is issued, travel must be completed by May 31, 2008, or one apply. Terms & Conditions of Offer: Fly one eligible round trip on flights marketed and operated by American Airlines between New York year from the date the ticket is issued, whichever comes first. Award certificate will be mailed to the AAdvantage member’s address that (JFK) and London (LHR) from 2/1/07 to 5/31/07 and earn a round-trip award ticket valid for Economy Class travel on American Airlines, is on file with AAdvantage Marketing Programs six to eight weeks after qualifying travel is completed. No stopovers or circle trips allowed. American Eagle® or AmericanConnection® within the United States (including Hawaii and Alaska) or between the U.S. and Canada, Mexico Offer subject to change without notice. Other restrictions may apply. Award travel must be booked at least 14 days prior to departure. or the Caribbean. Offer is restricted to residents of the U.S., Canada, Puerto Rico and the U.S. Virgin Islands. Passenger may earn up to a Maximum stay is 30 days. Award ticket is valid for travel in Economy Class and will be booked in “T” booking class. Seats are limited maximum of three round-trip Economy Class award tickets pursuant to this promotion. Offer is valid for travel on any purchased, published and may not be available on all flights or on all days of the week. Award ticket is not upgradeable. Award certificate is transferable but fare in First or Business Class beginning with F, J, A, D or I. To qualify for this offer, the JFK/LHR round-trip travel must begin and end may not be bartered or sold. American Airlines reserves the right to change the AAdvantage program rules, regulations, travel awards between 2/1/07 and 5/31/07. Offer applies only to new reservations booked between 1/31/07 and 5/31/07. Round-trip travel is defined and special offers at any time without notice and to end the AAdvantage program with six months’ notice. For complete AAdvantage as two one-way trips on nonstop flights between JFK and LHR, booked in a single reservation under one ticket number. To qualify, the program details, visit AA.com/aadvantage. Schedules subject to change without notice. A portion of all travel booked on American Airlines round trip must originate and terminate in New York (JFK). A maximum of one round trip is permitted per reservation. You must register may be operated by American Eagle or AmericanConnection. American Eagle is operated by American Eagle Airlines, Inc., or Executive for this offer prior to travel. This offer is not retroactive for travel taken prior to registration. Register online at www.aa.com/offers, using Airlines, Inc., which are wholly owned by American Airlines parent company. AmericanConnection service is operated by one of the following promotion code AAJFK. To register, you must be an AAdvantage member. If you’re not already an AAdvantage member, you can sign up independent contractors: Trans States Airlines, Inc., Chautauqua Airlines, Inc. or RegionsAir, Inc. AmericanAirlines, American Eagle, for a free membership online or when you call to make your reservations. Travel on flights operated by other airlines such as American AmericanConnection, AAdvantage, AA.com and We know why you fly are marks of American Airlines, Inc. WEEK IN REVIEW

McDonagh to replace him. Paul ECONOMIC SPOTLIGHT Lawrence, head of investment Port Authority banking in North America, will OKs funds for succeed Sandy Derickson as head Freedom Tower of HSBC Bank USA. THE 1,776-FOOT Freedom American adds Tower remains on track for flights in city its 2012 opening after the american airlines said that it PORT AUTHORITY OF NEW will expand its presence in the YORK & NEW JERSEY New York market, by adding flights and upgrading in-flight finalized funding. The and airport amenities.The airline, agency’s board approved based in Fort Worth,Texas, is set $2.87 billion in funding, to complete a $1.1 billion terminal at John F. Kennedy Airport this including $425 million for summer. related construction and services. Earlier in the week, CBS gets paid GOV. ELIOT SPITZER, who cbs corp. struck distribution deals once called the skyscraper with nine cable operators.The “a white elephant,” reversed agreements make CBS the first broadcast network to get paid for course and backed the programming by cable operators. project. Also, the Port Authority said it was in talks about various opportunities S&P to sell Economy Watch with private investors. fund data unit

bloomberg newsbloomberg standard & poor’s agreed to sell NYC’s unemployment rate stayed below 5% in December, coming in under the its mutual fund data business to U.S. figure. The area’s inflation rate edged up after three months of declines. Morningstar Inc. for $55 million NOVEMBER ’06 DECEMBER ’06 COMPARISON Judicial selection Warner eyes EMI in cash.The business includes NYC jobless rate 4.5% 4.3% 4.5%1 under review warner music group said it was information on more than NYC employment change -2,300 -8,500 +45,9002 making another run at struggling 135,000 managed investment the u.s. supreme court agreed British music company EMI products. 3 NY area inflation change -0.4% +0.2% +3.3% to hear an appeal of a federal court Group. Warner and EMI each 1-U.S. unemployment rate. 2-Change since December 2005. 3-Inflation rate for the latest ruling that demanded reform of made buyout offers of about 12-month period. the way New York state selects $4.6 billion to the other last year. Iconix acquires trial judges. Currently, judicial They abandoned talks when delegates—a group of elected another deal between Sony Corp. Danskin brand NYC Hotel Stats Broadway Stats officials mostly controlled by and Bertelsmann AG ran into iconix brand group, owner of Room rates crept up a few more Attendance and gross rebounded Republican and Democratic Party regulatory snags. Mossimo and Candie’s apparel cents in December, while occupancy modestly in the week ended 2/11, bosses—select nominees for their brands, agreed to buy the Danskin rates retreated, data from PKF The League of American Theatres respective parties. label for $70 million. Danskin will Consulting show. The averages for and Producers says. Through week Viacom inks continue to operate the Danskin 2006 were $271.08, vs. $242.89 a 37 of the season, attendance was 8.3 content deal wholesale business, which includes year earlier, and 85.5%, vs. 86.1%. million, and gross $644.3 million. LIRR rides high, retail stores and Danskin.com. viacom inc. signed a deal with arrives on time online video channel Joost to the long island rail road said license movies and television Verizon, Vonage that ridership increased to 82.1 shows.The deal comes two weeks million in 2006, the highest level after Viacom pulled Comedy patents on trial Central clips and other content verizon communication inc.’s from Google Inc.’s YouTube patent-infringement suit against service. Vonage Holdings Corp. opened in an Alexandria, Va., federal court. A victory for Verizon, suing to Grill grows in NY protect five patents related to its chipotle mexican grill inc. Internet telephone services, could ALL ABOARD: said it will open 12 restaurants hurt Vonage’s business. The commuter in the New York metropolitan line reported high area, including five in ridership. Manhattan, by the end of the NYSE specialist Capital IQ’s Weekly Deals Report newsbloomberg year.The Denver-based chain, since 2002, when it had 83.9 which entered the New York verdict tossed TRANSACTION SIZE COMPANY (in millions) BUYER/INVESTOR TRANSACTION TYPE million riders.The LIRR reported market three years ago, a federal judge threw out the its best on-time performance in operates 12 locations in the conviction of former New York NorthStar Realty Finance Corp. $800.0 Not disclosed GCI four years—a 93.3% rating, Big Apple. Stock Exchange specialist David Manhattan compared with 94% in 2002. Finnerty (left), who in October Ambac Financial Group Inc. $400.0 Not disclosed GCI was found guilty of securities Manhattan HSBC ouster fraud. U.S. District Judge Cyclacel Pharmaceuticals Inc. $36.0 Not disclosed GCI Image overhaul Short Hills, N.J. hsbc holdings, Denny Chin ruled that Ziopharm Oncology Inc. $30.9 Essex Woodlands Health Ventures, GCI jetblue airways corp. which has warned the government had Manhattan ProQuest Investments, LBI Group Inc., announced a new passenger “bill of higher-than- failed to prove that PTV Sciences, Medical BioHe@lth Trends, of rights,” in the wake of a nearly expected bad loan the former Fleet Henderson Global Investors week-long fiasco that resulted in provisions, Specialist Inc. trader Aquarion Water Co. of New York $28.0 United Water Resources SB M&A 1,200 canceled flights.The replaced Bobby defrauded his Port Chester, N.Y. Queens-based carrier said the ice Mehta as chief clients. Selected deals announced during the week of Feb. 11 for companies headquartered in metro New storm-related delays will cost it executive of —from staff York. GCI: Growth capital investment represents new money invested in a company for a minori- ty stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing $30 million in refunds and other HSBC Finance reports and shares of a company without the participation of a financial buyer. expenses. It also cut its first- and named bloomberg bekka lindström bekka quarter financial forecast. COO Brendan news reports

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Products and services not available in all areas. Some restrictions apply. ©2007 Time Warner Cable. All rights reserved. NEIGHBORHOOD JOURNAL Minorities gain in B’klyn building boom

minority- and women-owned busi- One particularly radical outfit has just hired its first paid staffer in Group wins ground in ness enterprises.But even in Brook- simply showed up at construction more than a decade, and it’s gearing diversifying borough lyn—a paradigm of urban diversi- sites and demanded jobs for its Afri- up to play a bigger role in the build- ty—the number of qualified firms can-American members. Contrac- ing boom. construction projects; was limited, and big builders re- tors responded by calling the police. “Before,there were just a few mi- mained focused on mechanical en- These days, before starting a nority union contractors,” Mr. brownfield battle plan gineering, not social engineering. project, they call the Downtown Howell says. “Now there are more Initial attempts to change the Brooklyn Advisory and Oversight and more.” MORE MUSS, NO FUSS: MWBEs got 33% of or years, people have situation were ham-handed. “They Committee,chaired by Mr.Howell. That makes it a lot easier for the work when the Marriott was expanded. urged contractors work- used to put names in a hat to pick out The group’s mission is to in- builders such as Muss Development ing on big economic de- groups who would get the jobs,” says crease participation by MWBEs,es- and Forest City Ratner Cos., which velopment projects to Bill Howell,owner of an eponymous pecially Brooklyn-based ones, in hire only union labor, to meet infor- than 20% of work to go to MWBEs. subcontract more jobs to construction management firm. area projects. The volunteer group mal targets that typically call for more The committee acts as both liai- F son and watchdog. Builders of pri- vate projects are not required to work with the group, but they have found it’s in their interest to do so. “We participated on a voluntary basis in this process and we did well, and we believe we did the right thing,” says Harvey Schultz, a vice president at Muss. Mr. Howell recalls some clashes with Muss when the Marriott Ho- tel was built on Adams Street in the mid-1990s. But the developer em- braced the committee when it ex- panded the hotel in 2005 and 2006, and was able to award 33% of the work to MWBEs, Mr. Howell says. —erik engquist Queens brownfield is next to godliness developers are pressing ahead with plans to build a $50 million low-income housing development on Jamaica Avenue in Queens, de- spite the discovery last year that the site of the proposed building is dan- gerously contaminated. Allen AME Housing Corp., a nonprofit set up by the Allen AME Church, made plans to buy the site I TRUST: CompUSA to bring me from Uniforms for Industry Inc.and to build a six-story housing and commercial complex. the latest technology. However,an environmental study revealed that oil and solvents once stored by the industrial cleaner in 10 underground tanks had leached into Rely on CompUSA to deliver the technologies that drive your business including Windows Vista™ and the soil. The tanks were removed in Microsoft® Office 2007. The new security, mobility and productivity enhancements of Windows Vista™ ® 2003, but they left behind a plot of and Microsoft Office 2007 help you get things done so you can focus on what matters most – your land that a consultant has labeled business. And even better, CompUSA’s Microsoft Volume Licensing program can deliver a substantial one of the most polluted in Queens. discount for as few as five copies. Instead of abandoning its plans, Talk to a Business Services Representative about our free technology needs assessment that can deliver Allen AME Housing formed an af- savings for your business. filiate company called Jamaica Ave- nue Reclamation to oversee a clean- up of the site.That firm has applied to the state Department of Environ- Register for the Microsoft Across America mental Conservation’s Brownfield Truck Tour today: Cleanup Program for tax credits and waivers limiting future liability.Allen 1-866-4-CompBZ AME Housing intends to complete www.compusabusiness.com/bustour the site purchase in early March. “Experts have given me a great Thursday, March 8th, 2007 deal of comfort in terms of defining 11:00 a.m. – 3:00 p.m. the problem,” says the Rev. Edwin 420 5th Ave., (5th Ave. & 37th), New York, NY 10018 Reed,chief financial officer of Allen AME Church.“We’re going to do the cleanup by the book.” He adds that the church is happy to be “involved CompUSA brings the latest technology to your business. with cleaning up our community.” At the Microsoft Across America Truck Tour, you can The state will rule next week on experience the benefits of Windows Vista™ and Microsoft whether to approve the brownfield Office 2007 first-hand with demos, expert Q&A, and special remediation and construction proj- offers. You can also enter to win Microsoft software*. *No purchase necessary. Store visit required. See store for rules and details. ect.The cleanup phase is expected to take about a year. Church officials hope to finally break ground in 2008. —hilary potkewitz

16 | Crain’s New York Business | February 26, 2007 THE BUSINESS OF LAW INSIDE Three sole practitioners explain why it’s not such a lonely business to go it alone PAGE 20 Q&A A new grad reflects on how NYU prepared him for public service PAGE 23

In class, BY ANDREW MARKS after his first year of law school practice at Hofstra University,Steven Metz- ger had the opportunity to enroll at Boston University. makes “A lot of people recommended I transfer, since I’d have a better chance at getting a job offer from a perfect top law firm because of BU’s higher pedigree,” he recalls. In the end, Mr. Metzger decided Educators slowly to stay at Hofstra, where he finished in the top 10% of his class. start emphasizing “I figured being a big fish in a small hands-on expertise; local pond would be as good as be- ing in the top quarter at a more pres- CUNY, NYU star tigious school,” says Mr. Metzger. He was proved right when he was offered a summer associate position BY STAN LUXENBERG at Schulte Roth & Zabel, where he is now a second-year associate. when a physician became With demand for lawyers sky- caught up in a heated dispute, rocketing, recruiting and hiring on he turned to a law student at local campuses ranging from New City University of New York. York Law School to Hofstra, Rut- The doctor had left his partner- gers and St. John’s has become as ship and wanted to open a new important to many elite firms as vis- practice. But a noncompete iting higher-echelon schools. Firms agreement barred former part- are learning to appreciate the back- ners from practicing within 500 ground and experience of many stu- miles of the original office. dents at these second-tier schools. Was the contract valid? May- be not,the law student decided. Revising the search terms The provisions could be con- “a few years ago, top firms like sidered restraint of trade. Davis Polk and Skadden Arps Slate The law student prepared Meagher & Flom wouldn’t have for trial, but the issue never looked at the lower-ranked schools went to court.The case was part where they are now recruiting seri- of a simulation, in which stu- ously,”says Margie Grossberg,an ex- dents practice with clients who ecutive at legal recruiting firm Major are really actors. Simulations Lindsey & Africa. “Brooklyn Law, introduce students to the types Cardozo, St. John’s—all the top 20 See PRACTICE on Page 19 firms are recruiting at these schools.” In addition to spreading wider nets, big New York firms are show- LEGAL ACTION ing a willingness to look far deeper into the ranks of second-tier schools. RECOMMENDATIONS from Placing in the top third of the The Carnegie Foundation’s class at Columbia may still carry report Educating Lawyers: more weight with elite firms than a Offer an integrated top 10% ranking at the Benjamin N. curriculum. Cardozo School of Law or New York 1 BAN ON BOSTON: Steven Law School,recruiters say.But it’s no Merge “lawyering,” Metzger turned down the longer news when a Brooklyn Law 2 professionalism and chance to transfer to BU in School graduate who didn’t make legal analysis from the start. favor of being “a big fish the law review ends up at a presti- Make the second and in a small pond” at Hofstra. gious firm such as Dewey Ballantine third years of law school or Cahill.

3 roger hagadone more valuable. “Even going deeper in our class, Support faculty in they still can’t get as many as they 4 working across the want,” says Joan King, Brooklyn curriculum. Law School’s director of career ser- vices. “I’ve had more calls this year Design the program so 2nd-tier schools than in the last three from firms like 5 students—and faculty— Cleary Gottlieb and Skadden,com- weave together disparate plaining they didn’t get enough ac- kinds of knowledge and skills. ceptances from our students.” Focus on the historical Kurt Rosell, co-chair of the re- 6 ideals of the legal merit a 2nd look cruiting committee at Schulte Roth profession. & Zabel—a firm that has nearly doubled in size in the past decade— Work together, within As attorney demand explodes, recruiters go will have multiple summer as- and across institutions. 7 sociates coming from St. John’s beyond top programs; find unexpected talent See 2ND-TIER on Page 18

February 26, 2007 | Crain’s New York Business | 17 REPORT BUSINESS OF LAW A report card on local law schools An assessment of programs below the top echelons, from U.S. News

BROOKLYN CARDOZO SCHOOL CUNY SCHOOL FORDHAM NEW YORK ST. JOHN’S UNIVERSITY LAW SCHOOL OF LAW OF LAW LAW SCHOOL LAW SCHOOL SCHOOL OF LAW 250 Joralemon St. 55 Fifth Ave. 65-21 Main St. 140 W. 62nd St. 57 Worth St. 8000 Utopia Parkway Brooklyn, NY 11201 New York, NY 10003 Flushing, NY 11367 New York, NY 10023 New York, NY 10013 Jamaica, NY 11439 (718) 780-7906 (212) 790-0274 (718) 340-4210 (212) 636-6810 (212) 431-2888 (718) 990-6474 U.S. News rank 58 U.S. News rank 53 U.S. News rank Tier 4 U.S. News rank 32 U.S. News rank Tier 3 U.S. News rank 80 2005 acceptance rate 1 25.4% 2005 acceptance rate 1 23.5% 2005 acceptance rate 1 20.6% 2005 acceptance rate 1 21.4% 2005 acceptance rate 1 38.7% 2005 acceptance rate 1 31.2% Undergrad GPA, 25th-75th Undergrad GPA, 25th-75th Undergrad GPA, 25th-75th Undergrad GPA, 25th-75th Undergrad GPA, 25th-75th Undergrad GPA, 25th-75th percentile (full-time, fall 2005): percentile (full-time, fall 2005): percentile (full-time, fall 2005): percentile (full-time, fall 2005): percentile (full-time, fall 2005): percentile (full-time, 2005): 3.15-3.64 3.19-3.72 3.03-3.52 3.37-3.76 3.12-3.61 3.18-3.72 Number of first-year students Number of first-year students Number of first-year students Number of first-year students Number of first-year students Number of first-year students enrolled in fall 2005 enrolled in fall 2005 enrolled in fall 2005 enrolled in fall 2005 enrolled in fall 2005 enrolled in fall 2005 305 full-time 247 full-time 166 full-time 323 full-time 403 full-time 236 full-time 2005-06 tuition 2005-06 tuition 2005-06 tuition 2005-06 tuition 2005-06 tuition 2005-06 tuition $34,850 full-time $34,850 full-time $10,521 full-time, in-state $35,141 full-time $38,600 full-time $32,700 full-time % of full-time students % of full-time students % of full-time students % of full-time students % of full-time students % of full-time students receiving grants in 2004-05 receiving grants in 2004-05 receiving grants in 2004-05 receiving grants in 2004-05 receiving grants in 2004-05 receiving grants in 2004-05 Less than half tuition: 52% Less than half tuition: 46% Less than half tuition: 23% Less than half tuition: 27% Less than half tuition: 47% Less than half tuition: 24% Average indebtedness Average indebtedness Average indebtedness Average indebtedness Average indebtedness Average indebtedness of 2005 grads 2 $87,920 of 2005 grads 2 $90,403 of 2005 grads 2 $50,382 of 2005 grads 2 $94,004 of 2005 grads 2 $84,325 of 2005 grads 2 $81,362 Proportion of 2005 grads Proportion of 2005 grads Proportion of 2005 grads Proportion of 2005 grads Proportion of 2005 grads Proportion of 2005 grads who borrowed 83% who borrowed 73% who borrowed 86% who borrowed 79% who borrowed 87% who borrowed 85% Attrition rate for first-year Attrition rate for first-year Attrition rate for first-year Attrition rate for first-year Attrition rate for first-year Attrition rate for first-year students in 2004-05 3 5.3% students in 2004-05 3 9.4% students in 2004-05 3 10.9% students in 2004-05 3 0.2% students in 2004-05 3 18.1% students in 2004-05 3 6.6% NYS bar passage rate summer NYS bar passage rate summer NYS bar passage rate summer NYS bar passage rate summer NYS bar passage rate summer NYS bar passage rate summer 2004/winter 2005 4 83.8% 2004/winter 2005 4 79.8% 2004/winter 2005 4 63.9% 2004/winter 2005 4 87.4% 2004/winter 2005 4 64.3% 2004/winter 2005 4 86.0% Percentage employed at Percentage employed at Percentage employed at Percentage employed at Percentage employed at Percentage employed at graduation in 2004 5 71.7% graduation in 2004 5 73.7% graduation in 2004 5 29.5% graduation in 2004 5 86.0% graduation in 2004 5 n/a graduation in 2004 5 68.8% Percentage employed Percentage employed Percentage employed Percentage employed Percentage employed Percentage employed nine months after graduation nine months after graduation nine months after graduation nine months after graduation nine months after graduation nine months after graduation in 2004 5 98.4% in 2004 5 97.1% in 2004 5 73.9% in 2004 5 98.4% in 2004 5 90.0% in 2004 5 93.4% Median starting Median starting Median starting Median starting Median starting Median starting salaries for 2004 grads 6 salaries for 2004 grads 6 salaries for 2004 grads 6 salaries for 2004 grads 6 salaries for 2004 grads 6 salaries for 2004 grads 6 Private sector: $115,000 Private sector: $95,000 Private sector: $56,212 Private sector: $125,000 Private sector: $100,000 Private sector: $70,000 Public service: $45,710 Public service: $49,000 Public service: $45,000 Public service: $47,500 Public service: $43,340 Public service: $47,000 2004 graduates employed 2004 graduates employed 2004 graduates employed 2004 graduates employed 2004 graduates employed 2004 graduates employed in-state 83% in-state 83% in-state 70% in-state 75% in-state 71% in-state 90% Data are from U.S. News & World Report’s 2007 rankings of the country’s top law schools. First 100 schools are ranked numerically. Others are assigned to tiers. n/a Not available. 1-For full-time students. 2-For grads who incurred law school debt. 3-Full-time and part-time. 4-For first-time test takers. 5-For full-time grads known to be employed. Nine-month figures include 25% of those with unknown status. 6-For grads employed full-time.

JOB TYPES FOR 2004 GRADS JOB TYPE JOB TYPE JOB TYPE JOB TYPE JOB TYPE 1% 2% 2% 2% 4% 3% 1% 5% 4% 2% 1% 3% 7% 3% 8% 3% 2% 6% 12% 18% 10% 12% 34% 13% 16% 6% 7% 39% 56% 6% 60% 72% 64% 12% 26% 13% 11% 5% 2% 12% 4% 13% 4% 1% 5% 4% 4%

Percentages may not add up to 100% due to rounding. Job type key ■ Law firms ■ Business/industry (legal) ■ Business/industry (nonlegal) ■ Government ■ Public interest ■ Judicial clerkship ■ Academia ■ Unknown

cessful lawyer in the 21st century class is 25,” says Kurt Rose, director aren’t indicated merely by high of career services at Cardozo.“Lots of 2nd-tier programs get a 2nd look grades at top schools. our students have been working for a “We’ve become more flexible in couple of years. That gives them a Continued from Page 17 says David Leinwand, chairman of the whole Yale graduating class and the way we look at potential hires,” different polish and appeal for firms.” University School of Law, Hofstra, Cleary Gottlieb Steen & Hamilton’s still need more,” says Joel Henning, says Joanne Ollman,director of pro- In addition, says Hildebrandt’s Cardozo and Brooklyn Law this year. recruiting committee. “With the a Hildebrandt senior consultant. fessional resources at Proskauer Mr. Henning, associates with previ- “Ten years ago, if we gave an of- growth of our firm,we’d be foolish to The hunger for fresh talent is Rose,who has been recruiting at top ous work experience have a lower fer to someone at a midrank local pass up people from other schools.” clearly having an impact on schools. firms for 25 years.“Good grades and attrition rate—a bonus for local law school, they’d say ‘yes’ immediately. Mr. Leinwand estimates that Last year, New York Law saw a 50% a good school still count for a lot,but firms. Now,that’s not always the case,”Mr. 10% to 15% of Cleary Gottlieb’s increase in the number of second- we’re also looking for people who can “One of our biggest criteria Rosell says. “Top students at those summer associates will come from year students who landed summer bring something else to the table.” when recruiting people is whether schools are getting multiple offers local second-tier schools this year. associate positions at big firms, they’ve got what it takes to thrive at from the best firms.” The demand for legal talent is notes dean Rick Matasar. Experience valued a major city firm,”says Cleary Gott- evident in the staffing statistics.The “Students who might not have that something else often comes lieb’s Mr. Leinwand. Broader horizons average number of lawyers at a top gotten that second look in ordinary in the form of practical knowledge. The big-firm routine is clearly firms still look to the top 10 law 20 firm in 1996 was 754.By last year, times are getting job offers,” Mr. Many students at second-tier schools not for everyone,he points out.“Stu- schools for the bulk of their hiring, that number had grown to 1,596,ac- Matasar says. already have work experience—an dents at New York schools are self- recruiters say. But they consider cording to Hildebrandt Internation- In addition to dealing with the increasingly popular selling point as selecting in that way: Many of them other factors, too. al, a management consulting firm simple supply-and-demand equa- firms seek out attorneys with back- understand and want that lifestyle.” “While the school is one indica- specializing in professional services. tion, law firms are learning that the grounds in technology or marketing. tor of talent, it’s not the only one,” “Shearman & Sterling could take qualifications for becoming a suc- “The average age of our incoming COMMENTS? [email protected]

18 | Crain’s New York Business | February 26, 2007 REPORT BUSINESS OF LAW

National Association for the Ad- vancement of Colored People. A Practice makes perfect in the classroom health student might elect to work in a clinic that assists the New York Continued from Page 17 resent people who have little access take the simulation classes. They tions in their first and second years, City Department of Health and of situations they will eventually to lawyers.But the movement to add also attend conventional classes in and they must take a clinic in their Mental Hygiene. confront in real courtrooms. clinics and other practical courses constitutional and commercial law. third year. NYU has surveyed graduates to The hands-on approach is a far has been slow to catch on.Part of the “Our theory is that students un- find out if the practical approaches cry from the traditional teaching sys- problem is money. In a clinic, one derstand legal doctrine better when CUNY career paths have actually been useful to them. tem portrayed in the 1973 movie The professor may supervise eight stu- they see how it is used,” says Peggy cuny’s curriculum reflects its un- Most alumni say that the simulations Paper Chase. Under the convention- dents.That requires a bigger budget Cooper Davis,a professor of lawyer- usual mission as a school dedicated and clinics have helped make them al method, students review a court than a typical class, where one ing and ethics at NYU. to preparing people for careers in better lawyers, Ms. Davis reports. decision and then face Socratic ques- teacher lectures 150 students. After taking lawyering classes in public service. Individuals concen- “The further they get from grad- tioning from a professor. Though At NYU, 16 full-time professors their first two years, NYU students trate in subjects such as health law uation, the more they appreciate the the system was developed a century work only on simulations,which are can elect to take a clinic in their third and civil rights. Those in the civil practical approach,” she says. ago, most law schools still use it. known as classes in lawyering. All year.At CUNY,there is less flexibil- rights specialty can do their clinical But now more schools are break- first-year students are required to ity. All students must take simula- work for an organization such as the COMMENTS? [email protected] ing from the pack and taking a more practical approach. “We want to be sure that our graduates have strong practical skills before they enter the working world,”says Pamela Edwards,a pro- fessor at CUNY School of Law. Shifting gears? Several New York schools—in- cluding New York Law School and St. John’s University School of Law—have been adding practice-

oriented classes. Among them, All Rights Reserved. LLP. Shapiro tein CUNY and New York University School of Law rank as national lead-

ers in the effort to reform curricu- © 2007 Dicks lums, says William Sullivan, senior A TRIAL BALLOON IN A RECENT NYU SIMULATION, a fictitious pharmaceutical company sought to buy the rights to a drug developed at the university’s labs. A student representing NYU interviewed an actor posing as the dean, while another student talked to someone who pretended to be the chief executive of the drug company. With information in hand, the two students negotiated. The proceedings were taped, and professors critiqued the efforts. While they offered suggestions about negotiating strategy, the professors also emphasized ethical questions, such as whether a lawyer can stretch the truth to serve a client.

scholar at The Carnegie Foundation for the Advancement of Teaching. “CUNY and NYU have devel- oped comprehensive clinical pro- grams that other schools should Building momentum. consider,” says Mr. Sullivan, a co- author of Educating Lawyers:Prepa- ration for the Profession of Law. DIY preparation for decades, many law school EXPERIENCE INNOVATION. Loews Corporation did. graduates have grumbled about be- ing ill-prepared for their careers. Loews Corporation, a Fortune 500 company and one of the largest holding companies in the U.S., recently Well-aware of how the traditional expanded its domestic natural gas pipeline holdings when its Boardwalk Pipeline LLC subsidiary acquired Gulf education system works, managers South Pipeline Company LP. To execute this complex $1.1 billion deal in less than two months, Loews turned at big law firms have developed their own training programs,so that rook- to Dickstein Shapiro for comprehensive legal counsel to navigate corporate, financial, tax, environmental, and ies are tutored by veterans on matters regulatory obstacles. By adding Gulf South’s 8,000-mile interstate natural gas pipeline, gathering, and storage such as how to conduct negotiations system, Loews continues to build and diversify its natural gas portfolio. and prepare for trial. Young people entering small organizations face a harder time, since they may have to teach themselves as they go along. WASHINGTON, DC | NEW YORK | LOS ANGELES | DICKSTEINSHAPIRO.COM

In recent years, some schools Prior results do not guarantee a similar outcome. have developed practical courses, such as clinics in which students rep-

February 26, 2007 | Crain’s New York Business | 19 REPORT BUSINESS OF LAW

ith first- year associates now Adding a personal touch for less commanding salaries of Media dealmaker ness,”says Ms.Bass,54,who,among $160,000 at other things, helped launch Sports W thrives outside Illustrated for Kids and negotiated some major law firms, it S.I.’s sponsorship deals with the Los might seem that every the corporate world Angeles Olympics. lawyer would be vying to “With my contacts, I knew I work at one of them. But could help creative people negotiate BY TOMMY FERNANDEZ with the large companies,” she says. in actuality, the vast majority—83.5%—of for more than 20 years, Judith Booming niche lawyers in New York state Bass was an in-house legal juggernaut her blue-chip connections have are solo practitioners, for some of the world’s largest media allowed Ms. Bass to tap into a firms, hammering out major book, booming niche market: independ- according to a report by Sole film and television ent artists and small to midsize pro- The Commission to Proprietor deals at the likes of ducers that want to conduct transac- Examine Solo and Small Time Inc., CBS tions with larger companies but Firm Practice, sponsored and Marvel En- can’t handle the fees billed by major terprises. law firms. by the New York State Bar In 2005, however, with the me- To make a go of it, though, she Association. dia industry roiled by mergers, lay- needed to create a low-cost business This section features offs and restructurings, she decided model and adapt to the hands-on to follow the advice of a law profes- needs of emerging talent. the stories of three sor friend and go solo. “Law firms are only targeting attorneys who have chosen “I was really at the point where I corporations,” Ms. Bass says. to go it alone. wanted to control my own busi- “There are many, many creative catherine gibbons catherine LOW OVERHEAD: Many creative people want representation but can’t handle the fees charged Your plans are spectacular. by big law firms, says Judith Bass, who keeps costs down by working primarily out of her home. people who need quality representa- ly out of her home to save on office tion but who can’t afford to pay $600 expenses. She also maintains a co- to $800 an hour.” leasing arrangement at the Regent Keeping her hourly rates at Business Center, at 787 Seventh But could your legal strategy $300—the same rate that most ma- Ave.,where she shares an answering jor law firms bill for midlevel asso- service and office equipment. She ciates—Ms. Bass has had no short- can use the center’s conference use a new blueprint? age of work. rooms for meetings. She has helped clients negotiate “You have to stay affordable,” a reality TV show deal with Discov- Ms. Bass says. ery Communications, an agree- She has had to adjust her philos- ment with Disney for an animated ophy about work, especially when it children’s program, and a docu- comes to saying “no.”When she was mentary film arrangement with in-house counsel and had a team, Logo, a cable television channel. she felt comfortable tackling a broad Other projects includes a pro- range of legal problems.But that ap- motional film deal with Puma and proach would be dangerous now, Cohen & Perfetto: A personalized approach to real estate law. a toy license with Fisher-Price. Ms. Bass says. Itʼs a simple, but profound, premise: Each client represents an important relationship. Instead, she focuses on deal- Getting to yes making and refers such matters as li- And every one of those relationships demands our complete attention and dedication. “judy has the ability to fairly bel and trademark disputes to other At Cohen & Perfetto, this is the philosophy that drives us. We make the connections represent her clients, structure the solo attorneys she has cultivated. that build these relationships, adding depth and value to every partnership we forge, best deals on their behalf and “I’m really not alone, but and every transaction that transpires. Whether your needs involve real estate, govern- always make the other side am part of a larger commu- ment incentives, banking, zoning, or litigation, itʼs not just a deal to us: Itʼs your deal. feel good about the transac- $300 nity of lawyers,” Ms. Bass Learn more at www.cohenperfetto.com. tion,” says client Susan MS. BASS’ says. hourly fee, the Miller, president of Mixed same as for big She has also learned that Media Group and a principal firms’ midlevel being a solo entertainment in Bolder Media, a joint ven- associates attorney means being in- ture that produced Wow! volved in the day-to-day Wow! Wubbzy!, an animated chil- lives of her clients. She quickly dren’s program that launched on memorizes the names of children Nickelodeon last fall. and spouses, and usually knows Ms. Bass’ success is no accident. when a client is out running errands She methodically researched the re- or walking the dog. She enjoys pro- 444 Madison Avenue, 5th Floor quirements of the entertainment viding the personal touch. C New York, NY 10022 discipline, attending workshops at “I have clients now who are gen- P COHEN & PERFETTO LLP Tel: 212-488-1300 Fax 212-813-0767 the city Bar Association and joining uinely grateful for what I do for Attorneys at Law www.cohenperfetto.com the group’s entertainment law com- them,” Ms. Bass says.“In the corpo- mittee. She nurtured her corporate rate world, many people just viewed connections—and she kept her me as a necessary evil.” overhead low. For example, she works primari- COMMENTS? [email protected]

20 | Crain’s New York Business | February 26, 2007 REPORT BUSINESS OF LAW

“As intelligent and educated as Tony is,I think his real strengths are A wrestler’s tenacity leads to success focus, determination and persever- ance,” ” Mr. AbdulJaami says.

worthy because of his youth—Mr. Riding the wave Trusts lawyer beats Park turned 30 this month—and mr.park’s approach has paid off in shyness to build because his niche has become more word-of-mouth referrals.In fact,his demanding for solo practitioners. expanding overseas practice started international practice Trusts and estates work touches on with calls from wealthy foreigners dozens of other specialties and who had heard good things about caters to one of New York’s most him from his domestic clients. BY TOMMY FERNANDEZ finicky legal markets: rich people Accomplished twenty- and thir- who insist on personal attention. tysomething New Yorkers make up he faced some of New York’s “Lawyers specializing in estate a big component of his business. “A toughest athletes to become a planning and administration often lot of successful people are just start- two-time city wrestling champion need help from other specialty prac- ing their families here,” he says. while attending Manhattan’s elite tices,”says G.William Haas,a trusts “They’re just realizing that they have Stuyvesant High School. He co- attorney with Morrison Cohen. to buy life insurance, set up wills and Sole captained the “Sophisticated estate plans would make plans for the future.” Proprietor team to victory need input on things like real estate, Mr. Park also credits his Ford- at a major securities law and corporate tax is- ham connections as being critical to tournament, sues.” his accomplishments. winning in his One alum gave him his law division while sporting a couple of Step by step school gig; another offered the tip cracked ribs. one key to Mr. Park’s success is the that got him into the Rockefeller As it turned out, pinning an op- tenacity he displayed on the Plaza office, which Mr. Park shares ponent to the mat proved easier for wrestling mat. For example, he with other trust attorneys. His Anthony Park than the schmoozing overcame his networking jitters by Fordham brethren referred work to required of him as a lawyer. After attending every event he could find him when things were tight and hanging out his shingle four years and helped support his new prac- gave him advice when cases got be- ago, he found that he was uncom- tice by doing work for other lawyers wildering. fortable having to hobnob with and firms. buck ennis “I’m very, very lucky to have had CHAMPION’S HABITS: Anthony Park says he overcame his aversion to networking by going to strangers to drum up business for his He also had to face the field’s every event he could find. Connections with Fordham alumni helped build his practice. this network,”Mr.Park says.“There budding trusts and estates steep learning curve.Mr.Park is no way I could have succeeded practice. had to quickly master the without them.” “I was a bit of an intro- $5K most arcane aspects of tax and ment escalated into a full-scale feud. He liked his boss’s independence. Mr. Park generally arranges a fee vert back then,” says the TYPICAL FEE real estate law and become fa- “Life would certainly be easier” Friends say that Mr.Park is more with clients for each project.He also Fordham law school gradu- for creating a miliar with setting up limited with more professional staff, Mr. than up to the challenges of running offers an annual retainer,which cov- straightforward ate. “I didn’t initially see the will for a liability corporations, trust Park says. “You have to really love his own shop. Attorney Saboor ers unlimited legal services in such value of constantly meeting wealthy couple funds and other entities. being an entrepreneur to do this.” AbdulJaami, co-captain of the areas as trust maintenance and es- people, but then I realized, The next challenge was He got his first glimpse of private wrestling team with Mr. Park, says tate planning. ‘Hey, I need clients.’ ” developing a network of the best real practice when he worked for a solo his buddy always trained hardest Fast-forward to now. Mr. Park estate brokers, investment man- trusts attorney while in law school. and never missed a practice. COMMENTS? [email protected] has a posh Rockefeller Plaza office agers, and other providers to meet and hundreds of wealthy clients, his clients’ needs. many of whom have a net worth in Mr. Park had to become street- the eight-figure range. His Asian smart in landlord-tenant relations, and European business is also courtroom tactics and old-fash- growing. ioned peacemaking—for the rare His accomplishments are note- occasion when a family disagree-

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February 26, 2007 | Crain’s New York Business | 21 REPORT BUSINESS OF LAW Immigration expert often most popular guy in room

Michael Lord & Co. “Most firms Because sound guidance on citi- Driven dynamo prefer to grow their business in zenship issues is hard to come by, a loves questions transactional practices like M&A, source that clarifies matters is held where the margins are larger.” in high regard. The name recogni- and tough cases tion resulting from Mr. Kaye’s edu- Interest becomes a career cation efforts has helped him win mr. kaye started as a labor lawyer at lifelong clients. BY TOMMY FERNANDEZ the now-defunct Guggenheimer & Such dedication comes at a price Untermyer, but he often socialized for Mr. Kaye, who says he is “60ish.” when attorney Allen Kaye gets with expatriates who peppered him His call load is so heavy that he must into a taxi, the driver often recog- with questions about things like schedule phone consultations as late nizes him. When he goes to a green cards and visas. Intrigued, he as 10 p.m. to midnight every work- restaurant, it’s not unusual for wait- attended courses at New York Uni- day.He has raised his hourly consul- ers to gather around him to ask for versity taught by Elmer Fried, an tation fee to about $350 in an effort Sole advice. expert in immigration law. to ease demand, but it hasn’t ebbed. Proprietor “No matter Mr. Kaye ended up working for He now focuses largely on busi- where I go in Mr. Fried, who offered him a part- ness immigration, including labor this city,there’s nership. Eager to blaze his own certification and other employment

somebody who trails, Mr. Kaye said no. issues,and medical doctor immigra- buck ennis recognizes me,”he says with a laugh. “In retrospect, declining tion. He also assists people TRAILBLAZER: Allen Kaye, who started out as a labor lawyer, became intrigued with “Hey, Mr. Kaye! Hey, Allen!” that offer was probably a big applying for visas from U.S. immigration issues after socializing with expats who constantly queried him about visas. Mr. Kaye has been a celebrity in mistake,” he says. $350 consulates abroad and han- New York’s immigrant community His habit of answering AVERAGE FEE dles many “broken cases,” for an hour’s for more than 25 years. questions turned into his phone in which the process has firms would avoid. generate a raft of new clients. In addition to working 18-hour trademark. Mr. Kaye co- consultation simply hit a wall. “To be a good immigration Such an effort is always accom- days, he hosts a television show and hosts a twice-monthly show with Mr. Kaye Mr. Kaye hasn’t always lawyer, you need to be willing to go panied by enforcement, Mr. Kaye writes on the challenges involved in on Channel 47, Immigration been alone. He has had a out on a limb for your client,” she says.The Department of Homeland becoming a U.S. citizen. His activi- andYou,and writes for weekly news- partner twice and is looking for one says. “Big law firms can’t do that.” Security has been gearing up by hir- ties have earned him fiercely loyal paper India Abroad and more than again. The most likely candidate is ing investigators, and employers clients and supporters in a niche that 50 other publication around the solo lawyer Joanne Orizal, with Something big in store need to get ready, he says. most firms shun. country. whom he shares his office space. now is probably the perfect time “Something very big is going to “Large firms really don’t like get- He has conducted 14 lecture Ms. Orizal, formerly with for a partnership. According to Mr. happen, and it will happen soon,” ting into this practice area and only tours on the Indian subcontinent Proskauer Rose and Winston & Kaye, talks are under way in Con- Mr. Kaye says. “This is going to do this work as a courtesy to corpo- and runs annual workshops at most Strawn, says that one of Mr. Kaye’s gress to implement by fall 2008 a affect a lot of businesses.” rate clients,” says Michael Lord, of the embassies and consulates in strengths is his readiness to take on series of measures addressing im- president of legal recruiting firm New York City. problematic cases that major law migration. The initiative would COMMENTS? [email protected] BUSINESS BREAKFAST FORUM Litigation Consulting & Forensic Accounting Group Please join us to hear Chief Judge Judith Kaye discuss her plans to Attorneys count on us to provide overhaul the New York courts in an critical thinking, expert witness effort to make them more effi cient and testimony, and sound financial advice. fair, her recommendations on how to change the election of judges, the need We offer services related to: for raising judicial pay and her proposals to revamp the state’s archaic divorce Judith S. Kaye • Forensic Accounting and Investigations Chief Judge, • SEC Investigations laws as well as other topical issues. State of New York • Damages Calculations • Tax and Securities Fraud Matters Date: March 14, 2007 Place: Sheraton New York • Tax Controversies 811 Seventh Avenue • Valuations Time: 8:00-8:30 a.m. Networking Breakfast • Matrimonial Matters 8:30-9:30 a.m. Program Cost to attend: • Accounting and Auditing Standards $60 for individual ticket(s) if pre-registered by Mar. 7 (American Express, Visa or MasterCard only); $70 thereafter $600 for table(s) of ten if pre-registered by Mar. 7; $700 thereafter

Evaluating facts. Assessing positions. Stating conclusions. YOU MUST BE PRE-REGISTERED TO ATTEND THIS EVENT. ALL TICKETS ARE NON-REFUNDABLE. To register go to newyorkbusiness.com and click on “Events,” Eisner LLP or fax your business card and credit card information to “Kaye Accountants and Advisors Breakfast” at 212-210-0499. For more information, call the Events Hotline at 212-210-0739. 750 Third Avenue For more information contact: New York, NY 10017 Walter Pagano, CPA, CFE Deborah Kovalik, CPA, CFE, CVA SPONSORED BY: 100 Campus Drive Partner-in-Charge Director Florham Park, NJ 07932 212.891.4049 973.593.7039

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22 | Crain’s New York Business | February 26, 2007 REPORT BUSINESS OF LAW

Nearly 70% of NYU’s graduates Q: How so? rights litigation, which focused on last year went on to law firms— A: I never felt pressure from my the rights of prisoners. While that many of them among the country’s professors or peers to do the white- isn’t exactly applicable to the work most prominent. Ten percent of shoe law firm thing. If you wanted I’m doing, more broadly I was being graduates, however, choose to go to, there was plenty of opportunity. taught to think strategically— Q&A into public service. Every fall, the top firms are banging always keeping your client in the One of those is Joshua Perry,who down the doors to get students to center of what you do. has an undergraduate degree in work for the summer. But it was English and American literature always clear that there were other Q: How did you end up choosing the NYU grad from Harvard University and grad- ways to go.There is a very large job in New Orleans? uated from NYU last December. public-interest law fair in February. A: I was applying for clerkships, He’s now with the New Orleans There’s a sense of balance. and as I was getting callbacks I takes public defenders’ office. Of course, there’s the pressure of heard from Peter Singer, the chief Here, Mr. Perry discusses his debt. here in New Orleans. Before reasons for going to NYU’s law Katrina, there were no full-time road less school and how it helped prepare Q: How are you handling your public defenders here, and he was george long george him for his new career. school debt? BIG HELP: NYU will repay Joshua Perry’s loans creating an office with full-timers. A: [If you] go to a top law school, as long as he practices public interest law. It struck me as an opportunity I traveled Q: Why did you choose NYU? you are going to be coming out couldn’t pass up, so I withdrew my A: I always wanted to work in with $150,000 in debt unless you’re clerkship applications. Chose school for its indigent defense, especially capital lucky enough to have money. Q: How did NYU prepare you for I had spent one summer in New defense. Some of the real heavy- There’s no way to repay that kind of your job? Were there specific courses Orleans doing death penalty public law prep; hitters in criminal law are at NYU, debt when you go into public that helped? defense. It was a city I love, and the generous debt plan like Tony Amsterdam, who defense in New Orleans, which A: It goes without saying that office was headed by a man I really litigated all the important death- pays $40,000 a year. But NYU goes NYU has impressive talent among trusted. I wanted to be on the penalty cases before the Supreme a long way to alleviating that its teachers, but what makes it ground level of building a new BY CYNTHIA RIGG Court. It was important to be pressure through what I think is a different is the faculty’s single- culture of civil rights enforcement. around people like him. generous loan repayment program. minded focus on the welfare of the I just took the bar, so I don’t ach year, nearly I also had expectations that students. I went to Harvard and have any sense of what it will be 1,400 students begin NYU was a place that would help Q: How does it work? was lucky enough to take classes like month after month, and the their legal studies at me get where I wanted to go, and A: The school is picking up my from all kinds of brilliant office is still desperately in need of New York University that turned out to be true. It was loan debt and will make the professors, many of whom couldn’t resources. But I can’t imagine that School of Law. They welcoming and very established payments as long as I stay in the have cared less about me and my it won’t be a great opportunity, if areE an elite group. U.S. News & for people interested in going into public interest area with a salary career.That wasn’t true at NYU, only in a crass way: I will learn a lot World Report ranks NYU’s law public law, both in terms of below a certain cap. I need to stay particularly in the law clinics. about being a criminal lawyer. school fourth in the nation. Less preparing you and helping you in public interest for five years to NYU has a ton of clinical law than 25% of applicants are accepted. find a job. realize the benefits. programs. I took a law clinic in civil COMMENTS? [email protected]

Go to newyorkbusiness-risingstars.com for photos, profiles and for the first time ever candid video interviews of the honorees.

February 26, 2007 | Crain’s New York Business | 23 BOOKKEEPING SERVICES BUSINESS SERVICES PUBLIC & LEGAL NOTICES

Notice of Qualification of Gracox LLC. Notice of Qualification of KTR Leasing LLC. Notice of Formation of GFI Development Authority filed with NY Dept. of State on Authority filed with Secy. of State of N.Y. Company, LLC. Arts. of Org. filed with Secy. 2/2/07. Office location: NY County. LLC (SSNY) on 1/10/07. Office location: NY of State of NY (SSNY) on 12/28/06. Office formed in Delaware (DE) on 12/17/04. Secy. County. Principal business location: 140 location: NY Co. SSNY designated as agent of State designated as agent of LLC upon Broadway, 43rd Fl., NY, NY 10005. LLC of LLC upon whom process against it may be whom process against it may be served. formed in Delaware (DE) on 12/13/04. SSNY served. SSNY shall mail process to: National Secy. of State shall mail process to: c/o TAG designated as agent of LLC upon whom Registered Agents, Inc., 875 Ave of the Americas, Ste 501, NY, NY 10001, also BUSINESS OPPORTUNITIES Associates Holdings LLC, 75 Rockefeller process against it may be served. SSNY shall FINANCIAL PLANNER Plaza, NY, NY 10019. DE address of LLC: mail process to: c/o Corporation Service registered agent. Purpose: any lawful activities. Corporation Service Co., 2711 Centerville Rd., Company (CSC), 80 State Street, Albany, NY Help us save the environment!! a Ste. 400, Wilmington, DE 19808. Arts. of Org. 12207. DE address of LLC: c/o CSC, 2711 NOTICE OF FORMATION of ACQ Networks Help us save St. Ambrose School!! filed with DE Secy. of State, 401 Federal St., Centerville Road, Ste. 400, Wilmington, DE LLC. Arts. of Org. filed with Secy. of State of We, the 425 students of St Ambrose School in Dover, DE 19901. Purpose: any lawful activity. 19808. Arts. of Org. filed with DE Secy. of NY (SSNY) on 10/02/06. Office location: NY Old Bridge, New Jersey need your help. We State, 401 Federal St., Ste. 4, Dover, DE Co. SSNY designated as agent of LLC upon have applied for a solar energy rebate from Notice of Formation of QUIK PARK BLOOM 19901. Purpose: any lawful activity. whom process against it may be served. the State of New Jersey for a 220.8 Kilowatt LLC. Arts. of Org. filed with Secy. of State SSNY shall mail process to: c/o Austin Vance, solar electric system. The State has granted us of N.Y. (SSNY) on 1/23/07. Office location: Notice of Qualification of 399 Knollwood ACQ Networks LLC, 316 West 19th St. #2E, $843,000, but we are in danger of losing NY County. SSNY designated as agent of Lessee LLC. Authority filed with Secy. of NY, NY, 10011. Purpose: any lawful activities. everything!! Unless we find a generous LLC upon whom process against it may be State of NY (SSNY) on 1/12/07. Office location: benefactor who can underwrite the additional served. SSNY shall mail process to: The NY County. LLC formed in Delaware (DE) on Notice of Formation of Barbosa Enterprises approximate sum of $1 million, we will lose LLC, 247 W. 37th St., 6th Fl., NY, NY 10018. 1/10/07. SSNY designated as agent of LLC LLC. Arts. of Org. filed with Sec. of State our grant. This is not only a charitable To place your classified Purpose: any lawful purpose. upon whom process against it may be of NY (SSNY) on 9/26/06. Office Loc. in NY endeavor, but a wonderful income generating served. SSNY shall mail process to: c/o County. SSNY designated as agent of LLC National Registered Agents, Inc., 875 Ave of opportunity. Interested parties kindly contact Notice of Formation of 345 7th Avenue, upon whom process against it may be served. ad call John Gallagher the Americas, Ste 501, NY, NY 10001, also Fr Bob Gorman at St Ambrose Rectory: LLC. Arts. of Org. filed with Secy. of State SSNY shall mail a copy of process to c/o registered agent. Address required to be 732-679-5676 or Peter Perrotta (facilitator) of NY (SSNY) on 12/21/2006. Office Michael Barbosa, 370 St. Nicholas Ave. @ 212-210-0189 maintained in DE: 160 Greentree Dr., Ste 101, at 646-295-3141 location: New York County. SSNY designated Suite 3C, New York, NY 10027. Purpose: Dover, DE 19904. Arts. of Org. filed with DE as agent of LLC upon whom process Any Lawful Purpose. Secy. Of State, 401 Federal St., Ste 4., Dover, against it may be served. SSNY shall mail LEGAL SERVICES DE 19901 . Purpose: any lawful activities. process to: The Company, c/o Vince Terranova, Notice of Formation of NJS 460 LLC. Arts. Bernstein Real Estate, 855 Avenue of the of Org. filed with NY Dept. of State on Americas, New York, NY 10001. Purpose: Notice of Formation of Adam Shopkorn Art 1/16/07. Office location: NY County. Secy. JULES MARTIN HAAS, ESQ. any lawful activities. Advisory Group LLC. Arts. of Org. filed with of State designated as agent of LLC upon Providing Legal Services to Businesses and Individuals for Over 20 Years NY Dept. of State on 2/1/07. Office location: whom process against it may be served. throughout the New York Metro Area. NY County. Secy. of State designated as agent Secy. of State shall mail process to: c/o Notice of Formation of MCCANN, GOODWIN of LLC upon whom process against it may be Wharton Realty, 20 E. 46th St., Ste. 1200, Wills • Planning • Probate • Real Estate • Co-Ops • Condos • Leases LLC. Arts. of Org. filed with Secy. of State served. Secy. of State shall mail process to: NY, NY 10017, principal business address Business Formation/ Transactions of N.Y. (SSNY) on 11/29/06. Office location: Adam Shopkorn, 1 Astor Place, Apt. 4V, NY, of the LLC. Purpose: any lawful activity. 845 Third Avenue, Suite1400, New York, NY 10022 NY County. SSNY designated as agent of NY 10003. Purpose: any lawful activity. Tel: (212) 355-2575 Fax: (212) 751-5911 E-mail: [email protected] LLC upon whom process against it may be served. SSNY shall mail process to: The NOTICE OF FORMATION OF LIMITED LLC, 630 Fifth Avenue, Ste. 1401, NY, NY Notice of Qualification of Barrington Land LIABILITY COMPANY. NAME: MAN AND 10111, Attn: Joseph H. McCann, III. Services, LLC. Authority filed with Secy. of WIFE LLC. Articles of Organization were filed REAL ESTATE Purpose: any lawful activity. State of N.Y. (SSNY) on 1/9/07. Office location: with the Secretary of State of New York NY County. LLC formed in New Jersey (NJ) (SSNY) on 10/17/06. Office location: New on 1/3/07. SSNY designated as agent of York County. SSNY has been designated as Notice of Formation of 300 West 22 Realty LLC upon whom process against it may be agent of the LLC upon whom process OFFICE SPACE LLC. Arts. of Org. filed with Secy. of State served. SSNY shall mail process to: 276 against it may be served. SSNY shall mail a of NY (SSNY) on 11/07/06. Office location: Fifth Avenue, 6th Fl., NY, NY 10001. DE copy of process to the LLC, 24 Fifth Avenue, NY Co. SSNY designated as agent of LLC address of LLC: c/o Alan Rosenbaum, 70 Apartment 1115, New York, New York 10011. upon whom process against it may be served. Grand Avenue, Ste. 101B, River Edge, NJ Purpose: For any lawful purpose. SSNY shall mail process to: The LLC, 433 07661. Cert. of Form. filed with NJ Dept. of EXECUTIVE OFFICE SUITES West 14th St., Ste 429 3R, NY, NY 10014. State, P.O. Box 308, Trenton, NJ 07625. Purpose: any lawful activities. Notice of formation of limited partnership Purpose: any lawful activity. (L.P.) Name: Yorkshire Towers Company 212.573.0909 Successor II, L.P. Cert. of LP filed with SSNY Notice of Formation of Craddock & Company Notice of Qualification of Sempra Energy on 1-08-2007. Off. Loc: New York County. LLC. Arts. of Org. filed with Secy. of State of Solutions, LLC. Authority filed with Secy. of SSNY designated as agent of the LP, upon FurnishedOfficesNYC.com NY (SSNY) on 11/16/06. Office location: NY State of NY (SSNY) on 1/02/07. Office whom process against it may be served. Co. SSNY designated as agent of LLC upon location: NY County. LLC formed in California SSNY shall mail a copy of any process to: c/o whom process against it may be served. (CA) on 10/31/06. SSNY designated as agent Lynn Schneider, 60 East 42nd Street, NY, NY SSNY shall mail process to: c/o Christopher of LLC upon whom process against it may be 10165. The name and address of each general Craddock, Manager, 235 East 40th St, Apt. 5J, served. SSNY shall mail process to: c/o partner is available from SSNY. Term: until SPACE AVAILABLE NY, NY 10016. Purpose: any lawful activities. National Registered Agents, Inc., 875 Ave of 3-09-2032. Purpose: To manage, improve, 36 West 44th St. – Btwn 5th & 6th Aves the Americas, Ste 501, NY, NY 10001. lease and otherwise deal with the property NOTICE OF FORMATION OF LIMITED Address required to be maintained in CA: 101 located at 305 East 86th Street, NY, NY. 7,920 sq. ft. – will divide LIABILITY COMPANY. NAME: 698 TITAN Ash St., San Diego, CA 92101. Arts. of Org. PROPERTIES LLC. Articles of Organization filed with CA Secy. Of State, 1500 11th St., DUB SONATA MUSIC L.L.C. Articles of Org. Lease or Purchase (7,920 feet only) were filed with the Secretary of State of 3rd Fl, Sacramento, CA 95814 . Purpose: filed NY Sec. of State (SSNY) 12/6/06. Office New York (SSNY) on 01/18/07. The latest date any lawful activities. in NY Co. SSNY desig. agent of LLC upon • Beautiful Street of dissolution is 12/31/2107. Office location: whom process may be served. SSNY shall Call New York County. SSNY has been designated 516 E. 6TH STREET, LLC Articles of Org. mail copy of process to 2621 Palisade Ave., • Attractive, High-Security lobby as agent of the LLC upon whom process filed NY Sec. of State (SSNY) 10/13/2006. #3B, Riverdale, NY 10463, which is also the DIANA against it may be served. SSNY shall mail a Office in New York Co. SSNY desig. agent address of the registered agent, Christopher • Jewelry & Medical Use Acceptable copy of process to the LLC, 626 Tenth Avenue, of LLC upon whom process may be served. Markisz upon whom process against the LLC PRINCE Suite 1A, New York, New York 10026. SSNY shall mail copy of process to 270 may be made. Purpose: Any lawful purpose. • Close to many prominent hotels, (212) Purpose: For any lawful purpose. Lafayette Street, New York, N.Y. 10012. Latest dissolve date: 12/31/2105. Harvard, U of PA & Yacht Clubs Purpose: Any lawful purpose. 315-0402 Notice of Formation of a Limited Liability Notice of Formation of Jubilee Time • Brokers Welcome! Company (LLC): Name: VELO-LEBO, LLC, Notice of Qualification of Strategic Value Credit Productions, LLC, Art. of Org. filed Sec'y of Articles of Organization filed with the Opportunities Fund, L.P. Authority filed with State (SSNY) 1/19/07. Office location: NY Secretary of State of New York (SSNY) Secy. of State of N.Y. (SSNY) on 11/18/03. County. SSNY designated as agent of LLC on 01/04/2007, Office location: New York Office location: NY County. LP formed in upon whom process against it may be served. County, SNNY has been designated as Delaware (DE) on 10/9/03. SSNY designated SSNY shall mail copy of process to Shukat S & B NY REALTY, LLC agent of the LLC upon whom process as agent of LP upon whom process against it Arrow Hafer Weber & Herbsman LLP, Attn: against it may be served. SSNY shall mail a may be served. SSNY shall mail process to: Allen Arrow, 111 West 57th St., Ste. 111, NY, copy of process to: C/O VELO-LEBO, LLC, The LP, 375 Park Avenue, 29th Fl., NY, NY NY 10019. Purpose: any lawful activities. OFFICE SPACE INVESTMENT OPPORTUNITY 253 West 72 Street Apt 907, New York, NY 10152. DE address of LP: 1209 Orange St., 10023. Purpose: Any Lawful Purpose. Wilmington, DE. Name/address of each genl. NOTICE OF FORMATION OF TORU LLC Latest date upon which LLC is to dissolve: ptr. available from SSNY. Cert. of LP filed with Art of org. filed with Sec. of State of NY MIDTOWN COMMERCIAL No specific date. DE Secy. of State, Townsend Bldg., Dover, DE (SSNY) on 12/22/06. Office loc.: NY County. REAL ESTATE 19901. Purpose: any lawful activity. SSNY designated as agent of LLC upon whom For All office & loft SPACES APTS - SAGINAW, MICHIGAN Notice of Qualification of GS Special process against it may be served. SSNY shall Opportunities 2006 Advisors, L.L.C. Authority Notice of Qualification of WKP-Spier, LLC. mail process to: 201 E. 79th St. 18-h, NY, NY 500-50,000 SF 10021. Purpose: Any lawful activity. UNDER MARKET SUBLETS-NO FEE! 143 Units - 97% Occupied filed with Secy. of State of N.Y. (SSNY) on Authority filed with Secy. of State of NY 1/4/07. Office location: NY County. LLC (SSNY) on 8/21/06. Office Location: NY Search our listings @ www.midcomre.com Units Avg. over 1,100 SF formed in Delaware (DE) on 10/13/06. SSNY County. LLC formed in Delaware (DE) on Notice of Formation of Off-Court, LLC. Arts. of Call Paul 212 947-5500 x 100 $5,700,000 - 8.1% CAP Rate designated as agent of LLC upon whom 5/11/06. SSNY designated as agent of LLC Org. filed with NY Dept. of State on 10/20/06. process against it may be served. SSNY shall upon whom process against it may be Office location: NY County. Principal business 282 Units - 93% occupied mail process to principal business location: served. SSNY shall mail process to: Attn: address: 2 Penn Plaza, Ste. 2430, NY, NY Advertise on $9,800,000 - $34,752/unit c/o Goldman Sachs Special Opportunities William McCartin, Esq. Sankel, Skurman & 10121. Secy. of State designated as agent of 8.39% CAP Rate Fund 2006, L.P., 32 Old Slip, NY, NY 10005. McCartin, 750 Third Ave, NY, NY 10017. LLC upon whom process against it may be www.newyorkbusiness.com DE address of LLC: Corporation Service Address required to be maintained in DE: served. Secy. of State shall mail process to: Both new financing opportunities Company, 2711 Centerville Road, Ste. 400, 160 Greentree Dr., Ste. 100, Dover, DE 11904. c/o CT Corporation System, 111 8th Ave., NY, Call John Gallagher Contact Rick Brace 248.341.3319 Wilmington, DE 19808. Cert. of Form. filed Arts. Of Org. filed with DE Secy. of State, 401 NY 10011, registered agent upon whom with DE Secy. of State, 401 Federal St., Ste. 4, Federal St., Ste. 4, Dover, DE 19901. process may be served. Purpose: any lawful @ 212-210-0189 or email [email protected] Dover, DE 19901. Purpose: any lawful activity. Purpose: any lawful activity. activity.

24 | Crain’s New York Business | February 26, 2007 PUBLIC & LEGAL NOTICES LUXURY PROPERTIES

Notice of Formation of CCD Modeling, LLC, Notice of Qualification of Paige Opportunity NOTICE OF FORMATION OF LIMITED CHAPPAQUA ESTATES Art. of Org. filed Sec'y of State (SSNY) Partners, LP, App. for Auth. filed Sec'y of State LIABILITY COMPANY. NAME: CELEBRITY 10/31/06. Office location: NY County. SSNY (SSNY) 10/23/06. Office location: NY County. EVERYTHING,LLC. Articles of Organization designated as agent of LLC upon whom LP org. in DE 10/20/06. SSNY designated as were filed with the Secretary of State of New process against it may be served. SSNY shall agent of LP upon whom process against it may York (SSNY) on 01/04/07. Office location: mail copy of process to c/o Shukat Arrow be served. SSNY shall mail copy of process to New York County. SSNY has been designated Hafer Weber & Herbsman, LLP, Attn: Peter S. 630 Third Ave., 6th Fl., NY, NY 10017, Attn: as agent of the LLC upon whom process LUXURY COUNTRY PROPERTIES Shukat, Esq., 111 West 57th St., Ste. 1120, Michele Paige. DE office addr.: CSC, 2711 against it may be served. SSNY shall mail a NY, NY 10019. Purpose: any lawful activities. Centerville Rd., Wilmington, DE 19808. Cert. of copy of process to the LLC, 208 East 51st LP on file: SSDE, Townsend Bldg., Dover, DE Street, Suite 255, New York, New York NOTICE OF FORMATION OF LOUD VENTURA 19901. Name/addr. of each gen. ptr. avail. at 10022. Purpose: For any lawful purpose. LLC. Articles of Organization filed with the SSNY. Purpose: any lawful activities. Secretary of State of NY (SSNY) on 8/14/06 Notice of Qualification of Fifth Associates, Office location NEW YORK County. SSNY Notice of Formation of 1405 FIFTH AVENUE L.L.C. Authority filed with NY Dept. of State has been designated as agent upon whom on 1/5/07. Office location: NY County. LLC process against it may be served. The Post APARTMENTS, LLC, a domestic Limited Liability Company (LLC). Articles of formed in Delaware (DE) on 12/28/06. Secy. Office address to which the SSNY shall mail of State designated as agent of LLC upon a copy of any process against the LLC Organization filed with Secretary of State on 12/18/06. NY Office location: KINGS County. whom process against it may be served. King’s Way ~ Chappaqua, NY served upon her is C/O the LLC 527 West Secy. of State shall mail process to: c/o 143rd Street #53. New York, NY. Purpose of Secretary of State is designated as agent Live and work at this country estate less than an hour from Grand Central Station. On over upon whom process against the LLC may Brian Kempner, Kushner Companies, 18 nine acres overlooking a scenic lake, the estate includes a majestic 1904 Manor and four large LLC: to engage in any lawful act or activity. Columbia Tpke., Florham Park, NJ 07932, Street address of Principal Business location be served. Secretary of State shall mail a outbuildings. The cloistered setting also offers beautifully planted grounds and a lakeside copy of any process against the LLC served principal business address of the LLC. DE pool. A unique opportunity to live and work in a truly spectacular setting...... $4,200,000 is: 527 West 143rd Street #53. New York, address of LLC: c/o Corporation Service Co., NY 10031. upon him/her to: THE LLC, 91 CONKLIN Chappaqua Office 914.238.4766 AVE., BROOKLYN, NY 11236. Purpose: To 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Arts. of Org. filed with DE Secy. 100% Local MLS Listings houlihanlawrence.com PEARLMARK MEDIA LLC Articles of Org. engage in any lawful act or activity. of State, Federal & Loockerman St., Dover, #1 RANKED GLOBAL NETWORK. filed NY Sec. of State (SSNY) 12-13-05. DE 19901. Purpose: any lawful activity. Notice of Qualification of Tokum Partners, LP, FAMILY OWNED, FAMILY RUN...SINCE 1888. Office in New York Co. SSNY desig. agent of BEST OF BOTH WORLDS. LLC upon whom process may be served. SSNY App. for Auth. filed Sec'y of State (SSNY) shall mail copy of process to 184 Lexington 11/15/06. Office location: NY County. LP org. Notice of Formation of 310 LEX PARKING Avenue, Suite 10C, New York, NY 10016. in DE 11/14/06 SSNY designated as agent of MGMT LLC. Arts. of Org. filed with Secy. of SOUTHAMPTON Purpose: Any lawful purpose. LP upon whom process against it may be State of N.Y. (SSNY) on 1/11/07. Office served. SSNY shall mail copy of process to location: NY County. SSNY designated as Notice of Formation of 750 Argyle Street 900 Third Ave., Ste. 1102, NY, NY 10022, agent of LLC upon whom process against it LLC. Arts. of Org. filed with Secy. of State of Attn: Lauren Chung. DE office addr.: CSC, may be served. SSNY shall mail process to: NY (SSNY) on 10/19/2006. Office location: 2711 Centerville Rd., Wilmington, DE 19808. c/o Aronauer, Goldfarb, Re & Yudell, LLP, NY County. SSNY designated as agent of Cert. of LP on file: SSDE, Townsend Bldg., 444 Madison Avenue, 17th Fl., NY, NY LLC upon whom process against it may be Dover, DE 19901. Name/addr. of each gen. ptr. 10022, Attn: Michael S. Scher. Purpose: served. SSNY shall mail process to: the avail. at SSNY. Purpose: any lawful activities. any lawful purpose. LLC, 325 W. 11th St, NY, NY 10014. Purpose: any lawful activities. Notice of Qualification of Gemini 449 West Name of LLC: 517 EAST 82ND STREET LLC. 36th Street 9, LLC. Authority filed with Secy. Arts. of Org. filed NY Sec. of State 10/10/06. NOTICE OF FORMATION OF THE FASHION of State of NY (SSNY) on 11/28/06. Office Princ. off. loc.: NY Cty. Sec. of State designated EXCHANGE, LLC. ART. OF ORG. FILED location: NY County. LLC formed in Delaware as agent of LLC upon whom process against it WITH THE SEC. OF STATE OF NY (SSNY) (DE) on 11/17/06. SSNY designated as agent may be served. Sec. of State shall mail a ON 11/02/06. OFFICE LOCATION: NEW of LLC upon whom process against it may copy of process to the LLC: c/o Centaur YORK COUNTY. SSNY DESIGNATED AS be served. SSNY shall mail process to: c/o Properties LLC, 551 Madison Ave., NY, NY AGENT OF THE LLC UPON WHOM Corporation Service Company, 80 State St., 10022. Purpose: any lawful activity. PROCESS AGAINST IT MAY BE SERVED. Albany, NY 12207-2543, also registered SSNY SHALL MAIL COPY OF PROCESS TO: agent. Address required to be maintained in Notice of Qualification of Cedar Hill Real Estate THE LLC, 1407 BROADWAY SUITE 1706, DE: c/o Corporation Service Company, 2711 GP, LLC. Authority filed with Secy. of State of NY, NY 10018. PURPOSE: ANY LAWFUL Centerville Rd, Ste 400, Wilmington, DE N.Y. (SSNY) on 1/24/07. Office location: NY ACTIVITIES. 19808. Arts. of Org. filed with DE Secy. Of County. LLC formed in Delaware (DE) on State, 401 Federal St., Ste 4., Dover, DE 19901. 1/8/07. SSNY designated as agent of LLC Notice of Qualification of PCV ST OWNER Purpose: any lawful activities. upon whom process against it may be served. LP, Authority filed with Secy. Of State of NY SSNY shall mail process to principal business (SSNY) on 11/14/06. Office location: NY location: Amachie Ackah, 747 Third Avenue, County. LP formed in Delaware (DE) on Little Green Dreams LLC formation notice. Articles Organization filed w/ NY Sec. State 33rd Fl., NY, NY 10017. DE address of LLC: 11/13/06. SSNY designated as agent of LP c/o Corporation Service Company, 2711 upon whom process against it may be 12/15/06. LLC office in NY county. NY Sec. State designated as agent upon whom Centerville Road, Ste. 400, Wilmington, DE served. SSNY shall mail process to: c/o 19808. Arts. of Org. filed with DE Secy. of National Registered Agents, Inc., 875 process against LLC may be served. Principal LLC & Post Office address to which NY State, 401 Federal St., Dover, DE 19901. Avenue of the Americas, Ste. 501, NY, NY Purpose: any lawful activity. 10001, also registered agent. DE address of Sec. State shall mail copy of any process LP: 160 Greentree Dr, Ste 101, Dover, DE against LLC served upon: 601 W57 St. 38c, 19904. Name/address of genl. ptr. available NY, NY 10019. LLC purpose: To engage in Notice of Qualification of 666 Fifth Associates from SSNY. Cert. of LP filed with DE Secy. any lawful act or activity. LLC. Authority filed with NY Dept. of State of State, Federal & Duke of York Sts., on 1/5/07. Office location: NY County. LLC Dover, DE 19901. Purpose: Real estate Notice of Qualification of ADG L5 Dev. Co. formed in Delaware (DE) on 12/26/06. Secy. leasing and development. LLC, App. for Auth. filed Sec'y of State of State designated as agent of LLC upon (SSNY) 5/30/06. Office location: NY County. whom process against it may be served. Notice of Qualification of The Carlyle LLC org. in DE 6/20/05. SSNY designated as Secy. of State shall mail process to: c/o Apartments LLC. Authority filed with Secy. of agent of LLC upon whom process against it Brian Kempner, Kushner Companies, 18 State of N.Y. (SSNY) on 1/16/07. Office location: may be served. SSNY shall mail copy of Columbia Tpke., Florham Park, NJ 07932, NY County. Principal business location: 7701 process to c/o Alexander S. Ludwig, 645 principal business address of the LLC. DE Forsyth, Suite 1025, St. Louis, MO 63105. Madison Ave., 14th Fl., NY, NY 10022. DE address of LLC: c/o Corporation Service Co., LLC formed in Delaware (DE) on 1/10/07. office addr.: Form-a-corp (DE) LLC, 901 2711 Centerville Rd., Ste. 400, Wilmington, SSNY designated as agent of LLC upon Market St., Wilmington, DE 19801. Cert. of DE 19808. Arts. of Org. filed with DE Secy. whom process against it may be served. Form. on file: SSDE, Townsend Bldg., Dover, of State, Federal & Loockerman St., Dover, SSNY shall mail process to: c/o Corporation DE 19901. Purpose: any lawful activities. DE 19901. Purpose: any lawful activity. Service Company, 80 State Street, Albany, NY 12207. DE address of LLC: 2711 Centerville Road, Ste. 400, Wilmington, DE 19808. Arts. of Org. filed with DE Secy. of State, 401 Federal St., Dover, DE 19901. Purpose: any lawful activity.

Notice of Formation of GRYPHON NEW MIAMI BEACH/FLORIDA YORK LLC. Arts. of Org. filed with Secy. of To place your classified State of N.Y. (SSNY) on 6/14/06. Office TRUMP OCEANFRONT CONDOS location: NY County. Principal business OWN YOUR LUXURY CONDO TODAY! location: 80 West 40th St., Ste. 52, NY, NY ad call John Gallagher TRUMP GRANDE & TRUMP TOWERS 10018. SSNY designated as agent of LLC Buy directly from the Developer & Save $$ upon whom process against it may be served. Furnished Condo Hotel units from $325k SSNY shall mail process to: Rubin, Di Paola 1-4 Bedrm Residential Condos from $875k & Di Paola, 405 Park Avenue, Ste. 802, NY, @ 212-210-0189 Ask for details on our FLY-BUY Program NY 10022. Purpose: any lawful activity. Call Exclusively Baronoff 305.213.3606 Notice of Formation of Rizzo Management, LLC, Art. of Org. filed Sec'y of State (SSNY) 11/28/06. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be www.newyorkbusiness.com served. SSNY shall mail copy of process to P.O. Box 923, NY, NY 10185-0923. Purpose: any lawful activities. Latest date 12/31/2056.

February 26, 2007 | Crain’s New York Business | 25 SMALL BUSINESS Successful family operation runs aground as franchisor er seemed to have his own agenda. and now hopes to advise businesses Blue-sky planning, Ultimately, the franchisees ganged on the pitfalls of franchising. owner anarchy doom up on the brothers “like kids on a “It’s easy to be falsely lulled into playground” as they pushed to buy thinking that franchising is the road dream of Krispy cheaper, lower-quality goods at to riches,” he says. Kreme-like success wholesale, Larry Vivola says. Mr. Vivola insists that he con- ducted years of research. Despite Far below target that, he says, he was ill-prepared to BY TINA TRASTER revenues that were lackluster at manage relationships with fran- best exacerbated the tension.Annu- chisees, defuse tense situations and arry and christian al sales at the average unit fell below handle the administrative tasks and Vivola thought they the $500,000 that the Vivolas pre- logistics involved in overseeing an had seen the light. In- dicted when they sold the licenses at operation that was spread over three spired by the huge suc- $25,000 per location. One fran- states. cess of franchises like chisee ran out of money after just Enlisting experts to structure the LKrispy Kreme and Cold Stone three months. initial franchise agreements, and to Creamery,the brothers began laying “Every major franchise, includ- find psychologically suitable and fi- plans to turn their family’s highly ing McDonald’s, started out as a nancially stable candidates, would successful Brooklyn pasta shop into mom-and-pop,” says David Kauf- have helped. a regional—and maybe a national— mann, a franchise specialist and Mr. Vivola says that he consid- phenomenon. partner at law firm Kaufmann Fein- ered hiring such consultants but was In the late 1990s, the brothers er Yamin Gildin & Robbins. “But deterred by the fees, which can run tested the waters by opening a sec- it’s not as easy as it looks.” into the thousands of dollars. BASTA: “Every single decision had to be explained and often defended five times,” says Larry ond Fratelli Ravioli in Brooklyn. The story of Fratelli Ravioli Instead, he end up relying on his Vivola, shown here in 2004, as he and his brother were still planning to add franchisees. One in Staten Island and four in makes that glaringly clear. By the own judgment. Mr. Vivola figured Manhattan followed. Annual rev- time the company descended into that anyone willing and able to com- enues for the fledgling chain, which bankruptcy in 2005, annual rev- mit the $200,000 that he estimated that Larry and Christian had taken of a recipe; the discussion was non- sold prepared pastas and sauces, enues were about $1.5 million— would be required to open a store over from their father, who had run stop.” soared to $2.5 million. 40% less than when it had a string of would make an excellent franchisee. the business for decades,quickly slid After the years of struggle, Mr. In 2000, with all indicators its own stores. He was wrong. into chaos when it became a fran- Vivola is glad it’s over. showing positive readings, the Mr. Vivola had also made the “Franchisors need to spend con- chising corporation. “I lost touch with customers, lost Vivolas borrowed $300,000, closed mistake of phasing out a wholesale siderable time with prospective op- my love of food preparation and all shops but the original Fratelli pasta and sauce operation that erators to evaluate their personali- Nonstop discussion spent all my time putting out fires,” Ravioli in Brooklyn and went into grossed $100,000 a year, leaving the ties and their goals,”Mr.Kaufmann “every single decision had to be he says. “I never imagined that a the franchising business. firm with nothing to fall back on. says.“The worst candidate is a wild- explained and often defended five small chain of five stores could ab- Fratelli had five franchises set up “Becoming a franchisor is risky,” eyed entrepreneur who wants to do times,” Mr. Vivola says. “Then the sorb every ounce of my energy.” by 2004—and the Vivolas’ dream says Mr. Vivola, who moved to Ari- things his way.” franchisee would call and say his turned into a nightmare.Each own- zona after Fratelli Ravioli closed The solid, family-run enterprise wife wanted to take the oregano out COMMENTS? [email protected]

“Do they want to be in a nickel-and- dime business?” Ms. White asks. Subprime lenders become prime targets Evidently they do. But though investment banks are currently the largest in the market—are still up mulating mortgages so that they can [Wall Street firms] is just not suffi- most active players in the market, Loan defaults boost for grabs. Among them are Option package them as bonds,sell them off ciently profitable,” Mr. Pereira says. another group could make an even industry losses, odds One Mortgage Corp., a unit of and reap more fees in trading them. The firms are betting that by in- bigger splash in mortgages as the H&R Block, which has been on the By having their own source of bonds tegrating the origination process shakeout continues, according to of more cheap block since November, and ACC rather than having to bid for them in into their capital markets and secu- Ms. White: private equity firms, or Capital Holdings’ Ameriquest, rities distribution platform,they can at least the more risk-tolerant takeovers to come which has long been a rumored make it more profitable, he adds. among them. takeover target. The investment Couple that with the fact that the Last year, hedge fund giants BY MATTHEW QUINN banks are making the originators Fortress Investment Group and Buyer’s market banks want buy back loans that go into early de- Cerberus Capital Management some of the biggest investment news of another collapse does fault, and you’ve got a recipe for made private equity plays for Cen- banks smell blood in the subprime little to improve sellers’ prospects. to package bankruptcy. tex Home Equity and General Mo- water and are devouring struggling “It’s a buyer’s market, and the As a result, Wall Street firms can tors Acceptance Corp.’s mortgage mortgage companies that make headlines coming out now are not loans as bonds name their terms in an acquisition. unit, respectively. loans to risky borrowers.The helping to improve the valu- “These smaller deals are struc- The cyclical nature of the busi- frenzy may only intensify in ations or perceptions of tured in a way that absolves the buy- ness, which is obviously dependent coming months if the hem- 35% these platforms,” says Rui er of the seller’s liability but gets the on interest rates, offers private eq- orrhaging worsens. NEW CENTURY Pereira, a managing director origination capability,” Ms. White uity firms a chance to grab firms at This month’s filing for share drop at Fitch Ratings. the market, the banks believe they says. the bottom of the market and ride when it Chapter 11 bankruptcy pro- reported higher The worst thus far came can provide themselves with a more Even with such favorable terms, it back up. tection by ResMae Mort- default losses a few weeks ago, when two reliable flow of deals. the deals are not without risk for in- Given the uncertainty over how gage Corp.,a home lender to of the largest U.S. subprime “The whole theory is that these vestment banks.Mortgage banking, far the mortgage market will fall, people with bad credit, was just the lenders—HSBC and New Century firms believe they need captive which tends to be low-margin and however, other private equity firms latest in a string of such filings. Financial—disclosed higher-than- origination capability to really be labor-intensive because of the need so far are standing pat. Credit Suisse has already swooped anticipated losses from defaults. able to assure themselves that to interact with a large number of “Private equity firms don’t want in to buy most of its assets for The report caused New Century’s they’ll have access to a certain borrowers, may not produce the to sit there and be cash-flow nega- $19.1 million. share price to plummet more than amount of volume,” explains Bren- same level of earnings that other tive for an indefinite amount of Several other investment banks, 35%. But, as is usual in a crisis, some da White, a managing director at banking operations do. time,” Ms. White says. “Some of including Barclays, Merrill Lynch find opportunity. investment bank Deloitte & these companies have to stabilize and Morgan Stanley, have made Investment banks Lehman Bros. Touche Corporate Finance. Nickel-and-dime and show they can survive.” deals in the past year or so to acquire and Bear Stearns have originated The market environment has “investment banks are much In the meantime, expect the subprime lenders, whose industry mortgages for a number of years,but been terrible for independent sub- more focused on transaction-ori- deep-pocketed big boys of Wall has slumped badly because of a spike the notion of “vertical integration” prime lenders and made them easy ented, high-margin types of busi- Street to keep the deals coming. in loan defaults. has gained traction with others re- pickings for the big banks. nesses for the most part,” Mr. Even with all the dealmaking, cently. “The cost to originate a loan rel- Pereira says. Matthew Quinn is a reporter at properties—including some of the The banks are interested in accu- ative to what they’re selling it at to Taking that into consideration, Financial Week, a Crain publication.

26 | Crain’s New York Business | February 26, 2007 BUSINESS TABLE TALK A big fat Greek welding of stylish food, aura at Axia Taverna PAGE 31 buck ennis

GOTHAM GIGS The anti- Paris CHERYL BENTON, 55 and fed up with the Paris Hiltons of the world, uses her free e-mail service,The Three Tomatoes, to give female baby boomers a mature pop culture connection. Her weekly missives offer tips on shopping, entertainment and other activities for women over 40. HISTORY Ms. Benton, who spent 30 years in the advertising business, launched The Three Tomatoes a year ago and now has more than 1,000 subscribers. She introduced a blog, but too few readers posted comments, so she now simply includes some of their thoughts in the e-mail. VOICE The service has an energetic group of followers. When an e-mail mentioned that the Lord & Taylor on Fifth Avenue was being considered for closure, readers sent a flurry of messages to the store’s owner, who quickly offered to arrange a special shopping event for them. THE NAME The name The Three Tomatoes refers to the retro term used to describe a good-looking girl, as in, “Did you see that tomato sitting at the soda fountain?” —elisabeth butler

EXPERT OPINIONS SURVIVING A BRIDEZILLA

wedding season is upon us. corbitt john Now is the time when a bride might become obsessed with THE STATS perfection. For anyone dealing with a demanding bride who Actors’ Equity has hurt your feelings: Don’t take it personally; don’t bottle Stepping off stage Association it up. Be honest, send a letter, membership call her, and certainly don’t gossip about her. Struggling actors find relief in 9-to-5 jobs You could also just suck it up and BY MIRIAM KREININ SOUCCAR 45,000 indulge her a little by offering to manda miller landed her first gig in a Cabbage Patch Kids commer- pitch in and cial at the tender age of 6. She spent the rest of her youth in singing, danc- Membership’s relieve some ing and acting classes or out on auditions. But all that hard work led only of the stress. median —kathleen to a string of off-Broadway musicals. By age 23, she’d had enough. annual salary murray “I was in a 10:30 show on a Saturday night, and there were more people Deputy on stage than in the audience,” Ms. Miller says. “I suddenly realized I editor didn’t want to do this anymore.” The Knot The Vassar graduate now travels the world as a See ACTORS on Page 28 $7,400 istockphoto A February 26, 2007 | Crain’s New York Business | 27 BUSINESS LIVES

Actors find joy in day jobs EPILOGUES MANY FAILED ACTORS TELL THEMSELVES they’ll try again when they’re older. Continued from Page 27 one was at Arts Counsel, an agency Workhouse Publicity and dreamed Some actually do. And of course, as the old saying goes, “Those who can’t public relations executive for Nike that represents illustrators. He was of being an actor as a child. He ma- do, teach.” Communications, working with excited about the work and was jored in drama and came to New Marty Gargle longed to become an actress until she was 19, when, she fashion and hospitality accounts. hired full time. York after graduate school with a says, “my parents told me they wouldn’t let me go to New York City without a Ms. Miller is one of thousands of Though he kept auditioning ini- suitcase and $20. He slept on real job.” New York actors who have found tially,he eventually put away his head friends’ couches and performed in Putting her fantasy on hold, she spent seven years as a flight attendant, happiness by dropping their quest shots. When The Sopranos called 200 “off-off-off Broadway” plays in then founded recruitment firm Employment Line in 1995. Only after she for fame and taking that once- about a bit part and Mr. Thibeault four years. had achieved financial stability at age 49 did she begin taking acting classes unthinkable nine-to-five job. The didn’t even call back, he knew it was and going on auditions. Her biggest claim to fame: playing the title role in cycle of daily auditions, the constant over.“They wanted me as an extra in Identity problem Aunt Rose, a horror flick that went straight to DVD. rejection and incomes below poverty the Bada Bing club, and I asked my- when his girlfriend—now his Terry Burstein, 50, got a temp job in a perfume company after 10 years of level—Actors’ Equity Association self,‘Do I want to spend four days in wife—said she wanted to move in, trying to make it onstage. He worked his way up in the cosmetics business reports the median annual salary of the Bada Bing club?’” Mr.Thibeault Mr. Nelson realized it was time to and became Avon’s director of global marketing and product development. its 45,000 members is $7,400—has says. “I don’t think so.” make a real living. He used his act- After seven years there, he took a buyout package and had the means to forced many to face reality and jump He felt such relief when he end- ing credentials to get a job at a PR return to his first love. off the treadmill. ed his acting career that he some- firm whose clients included director But instead of dragging himself to auditions, he coaches others. He “There’s no other profession times feels sorry for those still out Tim Burton and comic Martin received his M.F.A. in acting from the Actors Studio Drama School at The New that’s as hard as acting,” Ms. Miller there. “When I go to a play, all I Short. By the time he started his School in 2004. He now teaches Saturday classes at the American says.“You don’t go to an interview at think about is the actors and what own company, he was handling Academy of Dramatic Arts and courses at the College for the Business of a consulting firm and they say,‘Sor- they had to go through just to get clients like Rizzoli International Fashion during the week. ry, you’re too fat,’ or ‘You’re not tall that role,” Mr. Thibeault says. Publications and Union Jeans. enough.’ ” Of course, not all former thespi- He doesn’t miss the struggle, but “Now I’m able to combine both of my former lives,” he says. ans feel good about moving on. Mr. Nelson tries not to think of —MIRIAM KREININ SOUCCAR Transferred enthusiasm “A lot of people haven’t gone on himself as a retired actor. finding a new passion makes the an audition in five years and still “You put the dream on the back transition easier. For years, Michael think of themselves as actors,” says burner and start making qualifica- that could have been applied to He is much happier now, but his Thibeault sent out 25 head shots a Marty Gargle, whose recruitment tions like, ‘When I’m 70, I’ll be in finding a more lucrative career. quixotic search squelched some of week and worked for peanuts,doing firm, Employment Line, helps ac- Clint Eastwood territory,’ ” Mr. Gibson Knott juggled daily au- his passion. “Once you’ve tried and everything from plays in café base- tors find office jobs. “It’s very, very Nelson says. “You cannot emotion- ditions with a variety of temp and failed, you hate to throw yourself ments to walk-ons in One Life to difficult to think that you’re not an ally let go of this dream—ever.” restaurant gigs for five years before completely into things,” Mr. Knott Live. actor anymore,” she says. For some, the scars take a long he got fed up. Through Employ- says. “I take fewer risks these days.” In 2001, Mr. Thibeault took a That holds true for Adam Nel- time to heal. Some regret wasting ment Line, he found a job market- temp job to make ends meet. This son, who owns public relations firm years on a pipe dream and energy ing textbooks for McGraw-Hill. COMMENTS? [email protected]

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28 | Crain’s New York Business | February 26, 2007 BUSINESS LIVES CORPORATE LADDER Audrey Puente Weather bellwether Music legend’s child weather anchor at WWOR. Ms. Puente moved to struggling My9 PERSONNEL FILE becomes role model from Channel 2, where she predict- ed weather for the morning and COMPANY WWOR/My9 as female Hispanic noon newscasts. Ms. Puente re- TITLE Chief weather anchor placed Storm Field, whose contract anchor at Channel 9 at WWOR expired. AGE 36 Her new career plan didn’t blow RÉSUMÉ Meteorologist, BY MATTHEW FLAMM in overnight. Math and geography WCBS/Channel 2; weekend were Ms. Puente’s favorite subjects meteorologist, WNBC/Channel 4 s the daughter of when she was a child,and she has al- Latin music legend Tito ways loved maps. In her last semes- PERSONALITY TYPE Outgoing Puente, Audrey Puente ter at Syracuse, at a friend’s sugges- BIRTHPLACE Manhattan always expected to go tion, she interned in a local station’s into the family business. weather department. That’s when AIn her case, she figured, that meant she forgot about becoming a lawyer. having a famous name has helped becoming a lawyer for musicians. open doors But she still had to find “My father said he needed a Learning by degrees her own way, she says. Her public lawyer he could trust,” says the pe- ms. puente’s apprenticeship in- image gets a boost from the fact that

tite brunette, who studied xylo- cluded enrolling in weather and cli- her father, who died in 2000, was a buck ennis phone as a child and later taught mate classes at Hunter College,tak- beloved New York icon. herself piano. ing on-air jobs at regional stations “She comes from a great family, As an affiliate of News Corp.- lenges, Ms. Puente sees herself as a Law school was still in Ms. and earning a master’s degree in me- and that makes her recognizable,” owned My Network, WWOR airs good fit with Channel 9, which tar- Puente’s plans as she finished up her teorology from Mississippi State says Lew Leone, general manager soap operas during prime time; the gets an urban audience. As the first undergrad degree in speech commu- University. She also networked, be- of Channels 5 and 9, which are shows have been ratings failures.Fox female Hispanic chief weather an- nications at Syracuse University.But friending veterans of the weather owned by Fox Television Stations. plans to introduce new program- chor on an English-language sta- by then, she had a favorite pastime world like Al Roker and Channel 5’s “But I hired her because she’s ex- ming for the network next month. tion in New York, she also considers that had nothing to do with music. chief weatherman Nick Gregory. tremely competent and presents herself a role model. More and more, she found herself She met the latter while filling a se- well on-air.” Flagging newscast “When I was a kid, I didn’t see glued to the Weather Channel. ries of junior-level positions at Ms. Puente is the latest addition channel 9’s 10 p.m. newscast aver- women doing the weather,”says Ms. “I was interested in music and in WNYW in the early 1990s. to the Channel 9 news team, featur- aged 174,000 viewers in January,12% Puente, who is pregnant with her the music business, but my passion “She loves the weather, and she ing anchors Brenda Blackmon and below last year’s audience, Nielsen second child. “The fact that I’m a was the weather,” says Ms. Puente, loves to talk about it,” says Mr. Gre- Harry Martin.The station,a ratings Media Research says. The program woman—and a Hispanic woman— who ended up following her passion gory—describing the essential laggard for years, has posted even ranks last in total viewers among the is a big deal.” instead of her genes. qualities of a weather anchor. worse results since it was relaunched three news shows at that hour. Last month,she was named chief Ms. Puente acknowledges that last fall as My9 after UPN shut down. Although the station faces chal- COMMENTS? [email protected]

RSM McGladrey is the official accounting, tax and business consulting firm of the BUSINESS BREAKFAST FORUM PGA of America. HELPING YOU DRIVE RESULTS Success in business and in golf requires many of the Please join us to hear New York City Schools’ same attributes – a drive to Chancellor Joel Klein discuss the mayor’s plan to achieve, power, accuracy, endurance, focus and much overhaul the school system, giving principals more more. PGA Tour player Chris DiMarco, a member of Team power and stiffening requirements for tenure as RSM McGladrey, exemplifies these qualities. well as to equalize funding for individual schools. Team RSM McGladrey golfers are Crain’s moving up the ranks – much like our clients He will be questioned by editor Greg David Joel Klein Schools’ Chancellor, in New York and throughout the country. Our and another journalist. New York City clients rely on us for the accounting, tax and business consulting services that help them avoid the traps and make the green. Date: March 1, 2007 RSM McGladrey is one of the fastest-growing Place: Sheraton New York Time: 8:00-8:30 a.m. Networking Breakfast professional service firms in the New York 811 Seventh Avenue 8:30-9:30 a.m. Program region. For more information about RSM Cost to attend: McGladrey (and the audit firms with which it has $70 for individual ticket(s) (American Express, Visa or MasterCard only); $700 for table(s) of ten a professional services relationship*), contact Don Lipari Steven Mayer YOU MUST BE PRE-REGISTERED TO ATTEND THIS EVENT. ALL TICKETS ARE NON-REFUNDABLE. Managing Director Managing Director To register go to newyorkbusiness.com and click on “Events,” or fax your business card 750 Third Avenue 1185 Ave. of the Americas and credit card information to “Klein Breakfast” at 212-210-0499. For more information, call New York, NY 10017 New York, NY 10036 the Events Hotline at 212-210-0739. Tel 212.297.4817 Tel 212.372.1261 [email protected] [email protected] SPONSORED BY: *In New York, RSM McGladrey maintains a professional services relationship with Goldstein Golub Kessler LLP and McGladrey & Pullen LLP. Though separate legal entities, they can work together to serve clients’ needs. RSM McGladrey Inc. and McGladrey & Pullen LLP are member firms of RSM International, an affiliation of independent accounting and consulting firms.

February 26, 2007 | Crain’s New York Business | 29 BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING president for external affairs at World Christopher Peterson, 37, was promoted Alex Garvin & Associates: Anthony Monuments Fund. to partner from associate. HOT JOBS Goldsby, 30, joined as director of urban Fitzpatrick Cella Harper & Scinto: Filko design. He had been a project manager FINANCE & INSURANCE Prugo, 33, was promoted to partner from at Robert Adam Architects. Arsenal Capital Partners: Aaron associate. WANTED: DIRECTOR Bain & Co.: Dan Kuzmic, 37, was Davenport, 35, was promoted to Joshua I. Rothman, 35, was promoted to promoted to partner from manager. principal from vice president. partner from associate. ORGANIZATION New York Aquarium Arpan Sheth, 37, was promoted to Jack Norris, 32, was promoted to Lock See Yu-Jahnes, 44, was promoted to partner from manager. principal from vice president. partner from associate. JOB DESCRIPTION Guiding day-to-day fiscal and administrative CBIZ Accounting Tax & Advisory Services: Guy Carpenter & Co.: David Priebe, 47, Gibson Dunn & Crutcher: William operations Fred Lutzeier, 54, joined as president and was named head of global specialty Candelaria, 36, joined as partner. He had national managing director. He had operations. He had been president and been a partner at Mayer Brown Rowe & MOST IMPORTANT TASK Attracting and engaging visitors been a partner at KPMG. chief executive of Guy Carpenter & Co. Maw. CREDENTIALS NEEDED Senior-level management experience in a Huron Consulting Group: Richard D. Ltd. Jones Day: Owen Nee, 62, joined as of science or conservation institution Caruso, 45, joined as managing director. Chi Hum, 50, joined as managing counsel. He had been counsel at Orrick He had been a managing director at director, MMC Securities Corp., and Herrington & Sutcliffe. SALARY Upper-$100,000 range Kirkland & Ellis: Glass & Associates Inc. global head of distribution for insurance- M. Natasha Labovitz, RECRUITER Phillips Oppenheim Sherman K. Edmiston III, 44, joined as linked securities. He was senior vice 36, joined as partner. She had been a managing director. He had been a president at Swiss Re Capital Markets. partner at Gibson Dunn & Crutcher. DOWNSIDE Managing the facility during controversial Coney Island managing director at Glass & Associates Steven Hanke, 40, joined as senior vice Kramer Levin Naftalis & Frankel: Dani R. overhaul Inc. president, treaty, for the eastern region James, 37, joined as special counsel. She Marks Paneth & Shron: Noelene Sheridan, of North America. He had been senior had been a visiting assistant professor at UPSIDE Being able to strengthen ties with Wildlife Conservation Society 40, was promoted to partner from senior vice president at Aon Re Inc. Benjamin N. Cardoza School of Law. staff and with Brooklyn’s civic, philanthropic and business communities manager. Milbank Tweed Hadley & McCloy: Paul J. Parson Consulting: Mark Oberlander, 49, HIGH TECH & NEW MEDIA Wessel, 45, joined as partner. He had Former Director Paul Boyle left in the fall to pursue other opportunities. joined as practice director, financial Sungard Kiodex: Benjamin R. Jackson, 34, been a partner at Dewey Ballantine. The aquarium is one of the five “living institutions” under the Wildlife services. He was formerly a partner at was promoted to chief operating officer Orrick Herrington & Sutcliffe: Matthew L. Conservation Society umbrella, along with the Bronx, Central Park, Deloitte Consulting. from senior vice president. Craner, 34, was promoted to partner Prospect Park and Queens zoos. from associate. —KIRA BINDRIM ADVERTISING & COMMUNICATIONS HOSPITALITY & TOURISM Lara K. Daly, 32, was promoted to Text 100 Public Relations: Scott Friedman, Ovation Travel Group: Janice Blacksmith, partner from associate. 41, was promoted to regional director, 52, was promoted to vice president and Kevin P.Scanlan, 36, was promoted to North America, from senior vice general manager from regional director. partner from of counsel. president. Ofie Kodjoe, 41, joined as vice president Ropes & Gray: Richard D. Marshall, 54, Zeno Group: Jerry Tolk, 34, joined as and general manager. She had been joined as partner. He had been a partner had been a manager of development at Headcount Management: Michael Gansl, senior vice president. He had been a vice senior account manager at Carlson at K&L Gates. MTV. 60, joined as president. He had been president at Euro RSCG Magnet North Wagonlit Travel. Seward & Kissel: James E. Abbott, 47, Time Inc.: Steve Clancy, 37, was business development officer at the America. Lisa Lundquist, 41, joined as vice joined as partner. He had been a partner promoted to director of production for Bank of New York. president and general manager. She had at Carter Ledyard & Milburn. the Business and Finance Network from Planning Center for Professionals Inc.: ARCHITECTURE & DESIGN been director of account management at Steptoe & Johnson: Michael J.W. Rennock, custom projects production manager. Joseph M.Tavernite, 33, was promoted to Firstborn: Kevin Arthur, 42, was Carlson Wagonlit Travel. 47, joined as partner. He had been a Linda Lydon, 33, was promoted to managing director from sales manager. promoted to executive vice president partner at Winston & Strawn. director of special sections for the Sheldon Good & Co. International: from vice president of business LAW Sullivan & Worcester: Karen M. Business and Finance Network from Lawrence B. Samberg, 58, was named development. Baker & McKenzie: Philip von Mehren, Kozlowski, 36, was promoted to partner project manager. partner. He had been managing director of Ethan Farber, 34, joined as director of 48, joined as partner. He had been a from associate. Jose R. Pérez, 45, was promoted to vice Sheldon Good & Co. Auctions Northeast. business development. He had been partner at Curtis Mallet-Prevost Colt & Tannenbaum Helpern Syracuse & president, consumer marketing, for All —adrianne pasquarelli director of business development at Mosle. Hirschtritt: Brian A. Haskel, 45, joined as You and People en Español magazines. He Ultra 16. Bracewell & Giuliani: Ron I. Erlichman, partner. He was formerly counsel at Weil had been consumer marketing director Gran Kriegel Associates: David Kriegel, 33, was promoted to partner from Gotshal & Manges. for People en Español. EXECUTIVE PROMOTIONS 50, was promoted to managing partner associate. Crain’s lists the promotion and hiring of New York from principal. Cadwalader Wickersham & Taft: James T. MEDIA & ENTERTAINMENT REAL ESTATE area senior executives on a space-available Thornton Tomasetti: James M. Kent, 50, Bailey, 39, joined as special counsel. He AOL: Miguel Ferrer, 37, was named JC DeNiro & Associates: Steven Kopstein, basis, with priority given to positions in New York was appointed director of had been a partner at Kirkland & Ellis. programming director, AOL Latino. He 45, was promoted to vice president from City. Dewey Ballantine: communications. He was formerly Alexander Kayne, 34, was formerly business development associate broker. The fastest way to get an announcement into director of communications at Woods was promoted to partner from associate. manager at People en Español magazine. Crain’s is to submit details online by filling out the Hole Oceanographic Institution. John Keiserman, 34, was promoted to Hachette Filipacchi Media U.S.: Marta SERVICES form at www.NewYorkBusiness.com/submit. partner from associate. Wöhrle, 47, was promoted to senior vice Emcor Services NY/NJ: Frank Cooney,41, EDUCATION Bryan Luchs, 41, was promoted to president from vice president. She was appointed president and chief The Executive Moves column is also available Juilliard School: Riccardo Salmona,50, partner from associate. continues as director of digital media. executive. He had been president of online. joined as vice president of development Edward Nelson, 39, was promoted to Lion Television USA: Christy Spitzer, 34, Emcor Services Gotham Air Crain’s cannot confirm receipt of listings or say and public affairs. He was formerly vice partner from counsel. joined as director of development. She Conditioning. when they will appear.

THE WEEKS AHEAD

THIS WEEK’S EVENTS on how to create business plans. 10:30 ten techniques for business success. 6:00 MARCH 8 [email protected]. FEBRUARY 27 a.m. to 1:30 p.m., 250 Bedford Park p.m. to 8:00 p.m., 352 Seventh Ave., Score NYC holds seminar on starting MARCH 14 New York Society of Security Analysts Blvd. West, Old Gym Building, room 16th floor. Fee: $24.99. Registration and operating a service business. 10:00 Crain’s New York Business holds network- holds a course on leveraged buyouts. 108-B, Bronx. Free. (718) 960-8697 or required. (212) 564-7584 or a.m. to 12:30 p.m., New York Public ing breakfast and program with New 1:00 p.m. to 4:30 p.m., 1177 Sixth Ave., [email protected]. www.edwardabel.com. Library’s Science, Industry and Business York Chief Judge Judith Kaye. 8:00 a.m. second floor. Fee: $215 members, $275 MARCH 1 MARCH 6 Library, 188 Madison Ave., lower level. to 9:30 a.m., Sheraton New York, 811 nonmembers. (646) 871-3429. Crain’s New York Business holds Asian Women in Business holds small Fee: $40 in advance, $50 at door. Seventh Ave. Fee: $60. (212) 210-0739 FEBRUARY 27 networking breakfast and program with business workshop with Pearl Chin, (212) 264-4507 or [email protected]. or www.newyorkbusiness.com. Lower Manhattan Business Solutions Joel Klein, chancellor of New York City owner of Knitty City. 6:00 p.m. to 8:00 MARCH 14 Center holds seminar on bookkeeping. Schools. 8:00 a.m. to 9:30 a.m., p.m., 208 W. 79th St. Fee: free for MARCH 12-18 B’nai B’rith Real Estate Unit holds 3:00 p.m. to 5:00 p.m., 110 William St., Sheraton New York, 811 Seventh Ave. members, $30 nonmembers. MARCH 12 lunch program on the boutique hotel fourth floor. Free. (212) 618-8817 or Fee: $60. (212) 210-0739 or (212) 868-1368. Women in Housing and Finance Inc. boom. 12:00 p.m. to 2:00 p.m., 6 E. 44th [email protected]. www.newyorkbusiness.com. MARCH 6 holds forum on Red Hook’s changing St., Ivy Room. Fee: $55 in advance, $65 FEBRUARY 28 MARCH 3 Net@Work holds workshop for IT character. 6:00 p.m. to 8:30 p.m., Baruch at door. (212) 885-7239 or U.S. Federation of Small Businesses Association of Image Consultants decision makers. 8:30 a.m. to 10:30 a.m., College, 137 E. 22nd St., Steven L. [email protected]. holds networking reception. 6:30 p.m. to International, NY tristate chapter, 575 Eighth Ave., 10th floor. Free. Newman Hall, room 203. Fee: $15 —adrianne pasquarelli 8:30 p.m., 7 Hanover Square, 15th floor. holds workshop on achieving business (646) 293-1763. members if preregistered by March 7, Fee: free for members, $15 growth. 9:00 a.m. to 5:30 p.m., Fashion MARCH 6 $20 thereafter; $20 for nonmembers nonmembers. (718) 701-0087 or Institute of Technology, West 27th Bedford Stuyvesant Restoration Corp. required by March 7. TO LIST YOUR EVENT [email protected]. Street and Seventh Avenue, Building C, holds a small business forum. 6:00 p.m. (212) 625-2475. Crain’s lists meetings online and includes them in FEBRUARY 28 ninth-floor boardroom. Fee: $150 to 8:30 p.m., 1368 Fulton St., Brooklyn. MARCH 13 the print edition as space permits. New York City Lehman College’s Small Business members, $175 nonmembers. Free. (718) 636-6924. Healthcare Public Relations and events with fees under $300 are considered for Development Center holds workshop (646) 230-1152 or MARCH 6-8 Marketing Society of Greater New York the print publication. [email protected]. South Bronx Overall Economic holds breakfast on the do’s and don’ts of Listings can be submitted only through the Crain’s Development Corp. holds workshop. a TV interview. 8:00 a.m. to 10:00 a.m., Web site. Go to www.NewYorkBusiness.com More meetings online at MARCH 5-11 www.newyorkbusiness.com 6:00 p.m. to 8:00 p.m., 555 Bergen Ave., New York Times, 229 W. 43rd St. Fee: and click on “Events.” Sponsors have a choice of Click on “Events” MARCH 5 third floor, Bronx. Fee: $20. $30 members, $35 nonmembers. several free or paid listing options. All business Edward J. Abel holds seminar outlining (718) 732-7534 or [email protected]. (917) 767-4701 or events are posted online within two business days.

30 | Crain’s New York Business | February 26, 2007 BUSINESS LIVES TABLE TALK by Bob Lape Crisp-fried skate wing is crusted with split peas and fava beans and present- BEST OF BOB LAPE ed with baby artichokes and lemon mash. A salmon pan roast is enno- Other Greek restaurants in the area: bled by a crust of kalamata olives. Figs, feta and caramelized on- Parea ★ ★ ions figure in roasted stuffed leg of 36 E. 20th St. (between Park Ave- lamb.There are also straightforward nue South and Broadway), Man- Office & Retail charcoal-grilled offerings of salm- hattan. (212) 777-8448. Strikingly Availabilities: on, pork, chicken, lamb and beef. handsome contemporary Greek Sides ($5 to $6) brim with appeal- restaurant with innovative small 212.594.2700 ing ethnic tastes, including spinach dishes created by Cleveland culi- rice pilaf,rice pilaf Cretan wedding- nary star Michael Symon. slgreen.com style, lemon-and-olive-oil mashed potatoes, and baked orzo with Pylos ★ ★ Reaching New Heights. tomato, feta, olives and mizithra,a 128 E. Seventh St. (between Ave- mild cheese. nue A and First Avenue), Man- The best of Axia desserts ($5 to hattan. (212) 473-0220. A wonder- $7) is the classic rich egg custard ga- ful take on Greek home cooking laktoboureko; loukoumades, a phyllo- on the Lower East Side. Tony Chi crusted apple fritter with cinnamon- designed this casual setting for honey sauce, also gets high marks. A flavorful, fresh dishes crafted by crisp basket of phyllo holds baklava ice Greek food authority Diane RUBBISH cream,but clove overwhelms the dish. Kochilas. ■ Feta ice cream—a creative stretch— REMOVAL is a yet-to-be-acquired taste. Mr. Vlahopoulos, a courtly host, is also an exceptionally gifted wine guide. His list is equally divided be- tween Greek wines (84) and those from the rest of the world,including Free Estimates Turkey and Israel. Pricing is restau- 24Hour Service rant-reasonable. Basements - Attics - Yards - Demolition Savvy locals who know a good Residential Contractors Commercial Accounts Welcome

buck ennis thing throng this Tenafly treat on www.gregsexpress.com EARNING LAURELS: Axia Taverna, named for the Greek word meaning “worthy,” features a weekends,but tables are ready to ac- handsome design by Tony Chi, an excellent staff and dishes presented with flair. commodate weekday patrons. The waitstaff is bright and personable. Greg’s express Axia Taverna lives up to its name. Save the Planet. Recycle. As Michael Parlamis says, smiling, “We live here and didn’t want to 1-866-MR-RUBBISH Greek pantheon look bad.” Not a chance. COMMENTS? [email protected] M&K BUSINESS HEROES of fine foods KNOWLEDGE | INTEGRITY | RESPONSIVENESS Diane Kochilas as menu consultant, Axia Taverna’s modern Alexander Gorant (Le Bernardin, cuisine, setting make Town, Patroon) as chef and Tim Vlahopoulos (Ithaka) as manager it NJ hometown hero; and wine maven. Guests may make a meal by desserts hit-and-miss choosing from the mezedes,two dozen small plates, salads and soups xia taverna provides a ($5 to $12). Seafood is a star here, AXIA TAVERNA stylish and compelling with ouzo supplying a lift.Salmon is 18 Piermont Road answer to the question: cured in it and mussels steamed in it. Tenafly, N.J. OUR M&K HERO (201) 569-5999 If you’ve built a thou- House-smoked mackerel is served NAVIGATES CLIENTS sand restaurants for with artichokes, roasted lemon and ★★★ THROUGH THE FIRM’S other people and are now building arugula, and fried shrimp with a UNIVERSE OF SERVICES. A CUISINE Modern Greek your own in your hometown, what roasted garlic-saffron dip. should it be like? Tomatoes are stuffed with lump WINES 170 choices, 32 by the Axia—from the Greek axios, crabmeat, mussels and rice. The glass meaning “worthy”—is engineer Mi- Axia take on taramosalata combines chael Parlamis’ tribute to his wife, lobster with the usual fish roe. I love DRESS No code Marge. Mr. Parlamis heads up the the cooked cheese dishes, whether NOISE LEVEL Moderate contracting firm bearing the name the baked haloumi from Cyprus PRICE RANGE $21-$26 of his father, Frank Parlamis, who with mint and orange accents,or the founded the business 70 years ago. more dramatic saganaki, which is WINE MARKUP 100%-250% In the real world, we’re CPAs. The strikingly handsome duplex is flamed with Metaxa brandy and CREDIT CARDS All major To our clients, we’re Superheroes. the work of ace designer Tony Chi.Its spritzed with lemon. 130 seats radiate around and above an There’s a pork duet called lou- RESERVATIONS A must unusual conical fireplace resembling kaniko me kapnisto hirino—slices of on weekends retro rockets on a spaceship.A roomy tangy, salty sausages paired with HOURS Lunch, Mon.-Fri., bar is screened from the dining areas sliced, smoked pork. Grilled octo- noon-3 p.m.; Dinner, Mon.-Thurs., MARCUM & KLIEGMAN LLP by racks of horizontally displayed pus salad tips the salt scale as well. 5-11 p.m., Fri.-Sat., 5 p.m.-1 a.m., Certified Public Accountants & Consultants wine bottles. The setting comfort- Chef Gorant’s kitchen crew pre- Sun., 12:30-9 p.m. ably blends modernity and ethnicity, sents each dish with flair and skill. 800.921.0777 | www.mkllp.com ★★★★= Outstanding with smooth white walls displaying Coriander-crusted tuna shares a plate ★★★ NEW YORK clay pots on shelves near the ceiling. with sprightly tabbouleh,and tender = Excellent MELVILLE STAY TUNED FOR ★★= Very good GREENWICH THE NEXT INSTALLMENT OF Mr. Parlamis and his son Alex, roasted Vermont quails are stuffed ★= Good GRAND CAYMAN M&K BUSINESS HEROES Axia’s owners, clearly know top tal- with an apple,fig and pine nut filling ent.Their picks: Greek food author flavored with masticha, a pine resin.

February 26, 2007 | Crain’s New York Business | 31 © 2007 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved. Avery, Marks-A-Lot, the Crown Cap Design, and all other Avery brands are trademarks of, and used here under license from, Avery Dennison Corporation.