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Landlords Will Survive Stuy Town Verdict

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Landlords Will Survive Stuy Town Verdict 20091026-NEWS--0001-NAT-CCI-CN_-- 10/23/2009 7:40 PM Page 1 INSIDE THE TOP STORIES MAYOR’S Should RACE hospitals CRAIN’S ENDORSEMENT pull ® trigger PAGE 10 on a $200M proton gun? VOL. XXV, NO. 43 WWW.CRAINSNEWYORK.COM OCT. 26-NOV. 1 , 2009 PRICE: $3.00 PAGE 2 Sumner Redstone Court case shows that he’s still got it could tip PAGE 2 How bank bailouts hotel,union are driving up CD interest rates balance IN THE MARKETS, PAGE 4 Mike’s negative ads Management take toll on Bill agreements may THE INSIDER, PAGE 8 no longer hold Residents fight BUSTED BY LISA FICKENSCHER big government john lam, a Chinese immigrant in the North Bronx who made his fortune in the gar- PAGE 9 ment industry,opened his first ho- tel in Manhattan in 2003. For newscom nearly four years, the Four Points Sheraton on West 25th Street op- BUSINESS LIVES erated as a nonunion property, just as Mr. Lam wanted. But everything changed in late 2006. That’s when the New York Hotel and Motel THE INSIDE DOPE Trades Council informed Mr. 75 Lam of a 2004 NUMBER of Why illegal trading crackdown will only intensify smaller, budget agreement with hotels that have his hotel operator opened in the city since 2003 BY AARON ELSTEIN vate-prison operator. After all, the govern- that obligated Mr. ment has only so many jail cells to hold all of Lam to pay his GOTHAM GIGS four days after Galleon Group founder Wall Street’s inside traders, so Uncle Sam workers a higher wage and abide by its work rules. Maintaining old homes Raj Rajaratnam was arrested on insider trad- will have to turn to the private sector for help. Mr. Lam balked, pointing out is her specialty P. 21 ing charges, hedge fund manager Bill Ack- Investing in Corrections Corp. could be that his company never signed the G ANNE FISHER talks man appeared before a hotel ball- smart for another reason, too. “It’s agreement and that the hotel oper- about adjusting to the room full of colleagues and suggested THE BEGINNING: also a hedge against your hedge fund ator, Interstate Management, nev- P. 21 The arrest of Raj er mentioned it. nonprofit world a clever way to profit. Rajaratnam on business, because as the SEC ramps Litigation followed, and now a G MOVERS & SHAKERS His advice: Buy stock in Correc- insider trading up …” Mr. Ackman cracked before tions Corp. of America, the big pri- charges See THE INSIDE DOPE on Page 19 federal judge is expected to decide Producer Jeffrey Finn See HOTEL on Page 17 takes the stage P. 22 G GAEL GREENE samples non-deli American P. 23 Landlords will survive Stuy Town verdict INDEX lords will undoubtedly suffer mighti- stop what people will claim.” Ruling will affect far fewer ly—and some tenants benefit huge- The court’s decision that the SMALL BUSINESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _5 units, owners than feared ly—for the overwhelming majority, owners of Stuyvesant Town/Pe- NEW YORK, NEW YORK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _6 life will go on as before. ter Cooper Village had illegal- REAL ESTATE DEALS PLUS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _7 “It’s certainly bad for [some], but it’s ly deregulated rents on about BY THERESA AGOVINO AND AMANDA FUNG CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _14 not a decision that will affect tens of 4,000 apartments is a legal mile- thousands of apartments,” says stone.But the key question is just FOR THE RECORD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _16 last week’s appeals court ruling that many Steven Spinola, president of how many more deregulated HOT JOBS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _21 New York landlords had long predicted would the Real Estate Board of units will be affected. Estimates EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _21 prove cataclysmic now looks to be nothing of the New York. “There may be range from a mere 5,000 to 75,000. RÉSUMÉ REVIEW _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _22 sort. The state’s highest court barred landlords tens of thousands of people Jerry and Rob Two things are already clear. Tishman THE WEEK AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _23 from deregulating apartment rents in buildings who claim they are owed Tishman Speyer and its part- receiving certain tax breaks. While some land- something, but you can’t See LANDLORDS on Page 18 bloomberg news 43 5 PHOTO ESSAY KEEPING NEW YORK CLEAN P. 12 ELECTRONIC EDITION NEWSPAPER 71486 01068 0 20091026-NEWS--0002,0003-NAT-CCI-CN_-- 10/23/2009 7:48 PM Page 1 IN BRIEF ODDS COSTUME RENTALS, WHICH FOR 22 YEARS SUPPLIED CLOTHES FOR PRODUCTIONS Hospitals’ $200M like Law & Order, filed for Chapter 7 bankruptcy protection this week.The shop was a victim of rising rents during the recession and changes in the way the entertainment industry Cutting-edge but CANCER CARE ON A COLLISION COURSE does business. Revenue fell about 10% last year, ungainly, cell-saving and the company’s landlord increased its rent by THE KEY ADVANTAGE TO PROTON BEAMS is that their charged particle radiation can deliver $5,000 a month two years ago. Meanwhile, doses with great precision and thereby spare healthy tissue from collateral damage. The proton another production-related business, scouting proton therapy is beam deposits most of its energy directly at the cancer site, unlike conventional radiation thera- and location firm Snap Productions, also filed py, which can harm nearby healthy cells. for Chapter 7 bankruptcy protection. a tough sell here A FEDERAL JUDGE SET A TRIAL DATE OF MARCH BY BARBARA BENSON 15, 2010, FOR A LIMOUSINE DRIVER WHO CYCLOTRON opened a hedge fund and is charged with after sen. edward kennedy was diag- Height: 7 feet defrauding investors of about $20 million.The nosed with a malignant brain tumor last 1 Width: 15 feet driver turned hedge fund manager, Alan year, his surgeons first operated and then Weight: 220 tons Fishman of Brooklyn, was the subject of a story sent him off for proton-beam treatment at Cost: $25 million published in Crain’s July 13 issue. Massachusetts General Hospital. He A powerful magnet could have gotten this cutting-edge care at accelerates protons to nearly MANHATTAN MEDIA, PUBLISHER OF NEW YORK any one of seven facilities, including loca- PRESS AND WEST SIDE SPIRIT, IS FINDING tions in Oklahoma City, Houston and ways to expand. It has just acquired online Jacksonville, Fla.—but not in New York. 10 million times per second, and publication Latin Business Chronicle and is Nearly two decades after California’s increases their energy to as much adding it to the business-to-business division it Loma Linda University Medical Center as 250 million electron volts. started last year with the purchase of Latin Trade flipped the switch on the first hospital- magazine and the formation of subsidiary based proton-beam machine in the U.S., Miami Media.Terms of the deal were not New York hospitals are still trying to fig- disclosed. A subscription Web site, Chronicle ure out whether they should follow suit,ei- caters to corporations and government agencies ther individually or as part of a group. interested in doing business in Latin America. Backers insist that New York can sim- ply not afford to be without the world’s most powerful weapon against cancer. BY THE NUMBERS Others advise patience, noting that the next generation of machines will be vastly Weekly shift of the city’s economy cheaper and that jumping in now would only touch off a hypercostly medical arms EVERYWHERE last week, there were signs of growth—from the biggest six-month gain in years race.They also note that the clinical effec- for The Conference Board’s leading indicators to tiveness of proton-beam therapy is still un- a 32% surge in Hamptons home sales. der study. “Whether New York needs [such a ma- chine] is debatable, and that is why proton 1.7% -40% +3.2% beams are an issue that encapsulates so PROTON VACANCY RATE DROP IN VALUE RISE IN PRICE of much in health care,”says a doctor who has BEAM LINE for Manhattan of construction gallon of regular a role in setting state health policy.“This is 2Protons travel through apts.
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