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20100628-NEWS--0081-NAT-CCI-CN_-- 6/24/2010 8:19 PM Page 1 ® VOL. XXVI, NOS. 26, 27 WWW.NEWYORKBUSINESS.COM JUNE 28-JULY 11, 2010 PRICE: $3.00 2 TH BIG IDEAS TO MAKE The mayors NEW YORK EVEN BETTER weigh in AND BRIGHTER P. 12 What they YEARS OF HIGHS & LOWS love and hate ON WALL STREET P. 30 about the job 5P. 33 PEOPLE SHAPING THE CITY’S RECOVERY P. 53 Then & Now Salomon’s How one Lew Ranieri 26 5 industry and the drove NYC’s mortgage ELECTRONIC EDITION reinvention abyss P. 23 P. 48 NEWSPAPER 71486 01068 0 CN013806 6/24/10 3:33 PM Page 1 20100628-NEWS--0001-NAT-CCI-CN_-- 6/25/2010 7:21 PM Page 1 INSIDE COMING UP TOP STORIES GREEN Teens face another REPORT jobless summer How the dirtiest PAGE 2 ® small businesses came clean Wall Street ties dog mayor’s man PAGE 2 VOL. XXVI, NOS. 26, 27 WWW.CRAINSNEWYORK.COM JUNE 28-JULY 11, 2010 PRICE: $3.00 Equinox gym chain works out overseas Loft Law expansion plan PAGE 3 threatens Workers having industrial a ball following companies World Cup 12,000 jobs at risk PAGE 3 as Albany protects It may be curtains illegal residents instead for dance troupe NEW YORK, NEW YORK, P. 4 BY AMANDA FUNG Is Law & Order it’s gotten harder and harder for fast-growing, 23-year-old Wonton over? Sam Food Inc. to remain in its Williams- Waterston says burg, Brooklyn, home. As more resi- dents have moved into a loft building maybe not across the street, the manufacturer of Q&A, PAGE 4 fortune cookies and noodles has had complaints from neighbors about de- livery truck noise.Now,a new law could IN BRIEF make things worse. KEEPING THE FAITH: Gov. David Paterson last week THE TOTAL VALUE OF MOODY’S Shardha Young and signed a bill that revived the Loft Law, CORP. SHARES SWELLED BY A Oscar Galinda are which would legalize residential use of half-billion dollars last Friday, sticking with the industrial buildings all across the city as Congress surprised investors Colors restaurant. and protect the rights of tenants who by largely ignoring credit raters live in industrial lofts. While manufac- in its massive financial reform turing spaces in the city’s 13 designated bill. Dropped from the bill was Industrial Business Zones are shielded a controversial proposal that from the new law, three longtime would have granted regulators buck ennis See LOFT LAW on Page 80 the power to decide whether Moody’s or rival Standard & Poor’s could rate a bond. Instead, Congress ordered up a study of the ratings business. Betting THREE SEPARATE CONSORTIA OF MAJOR HOSPITALS ARE TRUE COLORS that oil competing to build a proton- beam-therapy center in New York to treat cancer. North Restaurant started by WTC workers won’t tank Shore-Long Island Jewish Health System is negotiating to will expand even as NYC outlet struggles team up with SUNY Down- General Maritime state Medical Center on a $273 million project at the former BY LISA FICKENSCHER boosts tanker fleet site of Mary Immaculate amid Gulf oil spill Hospital in Queens. Mean- colors restaurant attracted a firestorm of Washington, D.C., and Chicago—are slated to get while, Memorial Sloan- media attention when it first opened four years ago. Colors restaurants as well. Kettering, Beth Israel, NYU And no wonder. It was started by a group of former If Colors’ experience in New York is any indica- BY AARON ELSTEIN Langone, Mount Sinai, workers from the Windows on the World restaurant tion of its future elsewhere, exporting the restaurant Montefiore and New York- as a tribute to their 78 colleagues who died there. will be a tough job. But Colors was never expected the wall street adage says it’s best to Presbyterian hospitals are Most of that glow has worn off by now. The to be just a business. It began as an idea to help keep invest when there’s blood in the streets. pitching a $227 million facility restaurant is struggling to pay its bills, and together a close-knit group of co-workers For Peter Georgiopoulos, that means for West 57th Street in Man- it’s sorting out management problems dat- who suddenly found themselves unem- buying when there’s oil in the water. hattan.The third contender is ing back to its inception. ployed amid the tragedy of losing their clos- As oil continues to gush into the Vassar Brothers Medical But another piece of the Colors experi- $5M est friends. Most of the workers earned a Gulf of Mexico, Mr. Georgiopoulos, AMOUNT See IN BRIEF on Page 2 ment—a worker advocacy group called comfortable living at Windows on the the most successful U.S. shipping en- that ROC-NY Restaurant Opportunities Center of New has won in World, a union shop where servers made as trepreneur to come along in decades, is York—has met with unexpected success. settlements much as $100,000 a year. making what on the surface seems to be NOTE TO READERS And that success is fueling an expansion of In the wake of the terrorist attacks,start- a spectacularly contrarian bet: buying Colors to other cities. ing a social revolution was not top of mind. every tanker he can get his hands on. Our next issue arrives July 12. The most advanced of those plans is in Detroit, But along the way, Colors—with its ideals of egali- Earlier this month, he spent $620 Go to www.crainsnewyork.com where the W.K. Kellogg Foundation is providing tarian management and generous pay—taught im- million to snap up seven tankers for his for daily news and analysis. funding. The restaurant is expected to open this migrant restaurant workers throughout the city to General Maritime Corp., including year. At least three other cities—New Orleans, See COLORS on Page 79 See BETTING on Page 80 20100628-NEWS--0002,0003-NAT-CCI-CN_-- 6/25/2010 7:09 PM Page 1 inquiring at retailers and, on a recent IN BRIEF morning, attending a college and career counseling day hosted by Deloitte, an ac- Continued from Page 1 A jobless summer counting and consulting firm. Center, which hopes to join with New York- “I honestly don’t know what I’ll do if I Presbyterian to open a $201 million proton- don’t find something,” says Mr. Maxwell, beam center in Fishkill, N.Y. Given the size for teenagers, again 16,who fears a repeat of last summer,when and cost of such a facility, New York state he was unable to land a job. “I’m trying to officials will likely approve only one project. save money to help pay for college.” JUST 10 DAYS AFTER NEW YORK CITY’S HEALTH 36% of 16- to 19-year-olds unemployed At a disadvantage DEPARTMENT PASSED NEW RULES REQUIRING mr. maxwell, like thousands of others, restaurants to prominently post letter grades yet another summer spent without learn- has applied to the Summer Youth Employ- rating their cleanliness, state lawmakers are BY CARL GAINES ing basic job skills and earning spending ment Program, a city-run jobs program calling for similar legislation. New York’s Senate money, as young people struggle to find that serves 14- to 24-year-olds. But he passed a bill requiring a grading system for all end-of-school-year celebrations and constructive ways to fill their time. isn’t hopeful. eateries in the state based on the city’s model, joy at the arrival of summer might be Adair Maxwell, a Queens resident, has “I’ve applied to the program two years which will start next month, when restaurants short-lived for young people in the New been looking for summer work to no avail, now and never gotten it,” he says, adding will begin receiving grades of A, B or C. York City area, as they come up against that he feels he’s at a disad- bleak prospects for jobs. vantage because the pro- AFTER NEARLY FIVE YEARS AT THE HELM OF The unemployment rate for 16- to One city-run gram also helps place LUXURY JEWELRY COMPANY DAVID YURMAN, 19-year-olds in the city sits at a stag- young adults who have Chief Executive Paul Blum announced that he is gering 35.9%. This, despite the fact program has more experience. stepping down. Mr. Blum, formerly president of that in May, the overall unemploy- New York State Labor clothier Kenneth Cole, is credited with expand- ment rate fell for the fifth consecu- received Commissioner Colleen ing Yurman’s wholesale and retail reach in the tive month, to 9.6%. Adding to this, Gardner hopes that the United States and overseas and growing its retail young people will soon face the re- 140,000 American Jobs and Clos- revenue to more than $750 million annually. ality that many of the jobs they ing Tax Loopholes Act of previously took for the sum- applications 2010,currently being con- THE STATE LEGISLATURE IS MOVING TO EXTEND mer are now spoken for by sidered in the U.S. Senate, RENT REGULATION BY SEVEN YEARS, AND older, more experienced will brighten the prospects some political insiders say landlords might be workers who have traded for young job seekers.The better off accepting an extension now rather than down during the tough bill includes $1 billion for waiting for November’s elections. If Democrats economy. summer jobs nationally. were to lose their Senate majority, they could still The result may “We think that will translate to $54 pass the extension before the Republicans took cut deeper than million for summer youth employment control of the chamber in January, but if the Dem- in the state and an additional 10,000 ocrats gain seats, they could amend the legislation Summer Youth Employment Program to make it even more favorable to tenants.