TOP STORIES REPORT Albany lobbyists TOP PRIVATE with Democratic COMPANIES ties come in Firms strike big deals from the cold Plus: 200 leading firms PAGE 2 ® PAGE 17 Why the top-rated radio station is tweaking its VOL. XXII, NO. 48 WWW.NEWYORKBUSINESS.COM NOVEMBER 27-DECEMBER 3, 2006 PRICE: $3.00 morning format PAGE 2 Port Authority Hospital takes on the FAA, offers its own plan for La Guardia bankruptcy PAGE 3 Despite O.J. woes, costs soar News Corp. shares are attractive and the number of professional IN THE MARKETS, PAGE 4 Saint Vincent’s fees firms involved,”says Lynn LoPuc- reach $45 million; ki, a professor at UCLA Law City Council bloc School who is currently a visiting opposes mayor on no legal charity professor at Harvard Law School. Fees in similar bankruptcies aver- property tax break for nonprofits age $25 million, says Mr. LoPuc- THE INSIDER, PAGE 12 ki, who puts SVCMC’s fee bill BY BARBARA BENSON “probably in the top 5%.” The case is a warning to other BUSINESS LIVES saint vincent Catholic Medical money-losing hospitals about the TERRY DENSON has lined Centers may have a mission to help true cost of filing for Chapter 11. CARETAKER’S BURDEN up major programmers for the indigent, but it’s certainly not “Recent experience has shown Siblings and Verizon’s FiOS TV. Will receiving any charity when that diverting money from the crisis of people subscribe? it comes to its bankruptcy health care is the unintend- Alzheimer’s proceedings. $810 ed consequence of bank- PAGE 35 Through September, TOP HOURLY ruptcy,” says David Sand- fee billed by A NEW PLAYER IN TV the $1.6 billion system had Weil Gotshal man, executive director of been billed $45 million in & Manges Gov.George Pataki’s hospi- professional fees related to tal right-sizing commission. its July 2005 Chapter 11 filing.The But this filing isn’t the only one tab from its lawyers, consultants demonstrating that bankruptcies and financial advisers is nearly eat into a hospital’s ability to care Can Verizon double that of similar bankruptcy for the sick. Brooklyn Hospital filings. Center had assets of $233 million “These fees are truly extraordi- and liabilities of $337 million AT DEADLINE flip the switch? nary for a case of this size, length See COSTLY on Page 34 ACQUISITIONS OF NEW YORK CITY-BASED technology On verge of entering city market, companies are on pace to increase for the fourth phone giant must convince consecutive year, according to Firms may leave city research by Innovation customers to give up cable Advisors, a technology investment bank. Last year, BY AMANDA FUNG as tax breaks expire 119 local tech companies were acquired, up 19% from 2004. two years ago, Verizon Communications lured Terry Tough choices loom, As of the third quarter this Denson away from a long career in cable TV to lead the WILL THEY STAY? year, 106 companies have with AXA, Disney, been bought. telecom giant into new territory—the world of television. He has been working in overdrive ever since to line up ma- Viacom in play INCENTIVES* EXPIRATION WILLIAM DEGAL, WHO OWNS jor programmers such as ESPN, MTV and Discovery for DISNEY TWO Uncle Jack’s Steakhouses Verizon’s fiber-optic TV service. in the city, is close to launch- “A typical deal for multichannel distribution takes 12 to BY JULIE SATOW $12.0 2009 ing a third. Next year, Mr. 18 months to close,” says Mr. Denson, vice president of con- VIACOM Degal expects to open an tent strategy and acquisition for FiOS TV.“We were asked when viacom inc. threatened to Uncle Jack’s Steakhouse at to do over 100 deals in half that time.” move 1,600 workers to New Jersey $15.0 2009 44 W. 56th St, between Fifth in the 1990s,Mayor Rudy Giuliani and Sixth avenues, in a two- With those deals nearly completed, Mr. Denson turns to offered the media giant millions of CITIGROUP level space formerly occupied his biggest test yet. After months of lobbying, Verizon is dollars in tax breaks. In exchange, by Juniper Suite, a lounge and close to securing a franchise to offer TV in New York City Viacom agreed to stay and expand $22.0 2010 See AT DEADLINE on Page 2 See CAN VERIZON on Page 33 in Manhattan. AXA EQUITABLE Now, the company’s incentives and leases are expiring, and it is back in the market for as much as $9.3 2011 COMINGNEXT WEEK 2 million square feet. Among the MORGAN STANLEY The Real Estate Report looks at the locations that Viacom is consider- gains that New York CONSTRUCTION ing is Jersey City, forcing the city $49.4 2011 ELECTRONIC EDITION FIRMS are making across the globe, to once again confront the compa- *In millions. and ranks top property managers. ny’s possible departure. Source: NYC Economic Development Corp. NEWSPAPER See FIRMS on Page 33 AT DEADLINE Continued from Page 1 INTERACTIVE AD AGENCY AVENUE restaurant that recently closed A/RAZORFISH has taken over after about a year of operation. Google’s old digs at 1440 Broadway.The agency has STATE APPROVAL OF THE consolidated its New York oper- CONTROVERSIAL Atlantic Yards ations—moving more than 300 project in Brooklyn could be employees from three downtown pushed back to 2007 because of offices into the 80,000-square- Albert Pirro a technical error by the Empire foot space on Broadway between news daily State Development Corp.The West 40th and 41st streets. agency failed to incorporate Avenue A/Razorfish, a unit of some public comments into the Seattle-based digital marketing final environmental impact company aQuantive, has 16 statement that its board certified offices throughout the world. Nov. 15.The amended Its New York office is now the document will be taken up at largest. today’s ESDC board meeting. Several more steps would then A FEDERAL JUDGE IN MANHATTAN be required before the Public HALTED the $15 million sale of the Authorities Control Board can rights to Jimi Hendrix’s hit take a vote, the final stage of the songs and previously unreleased state approval process. album tracks after protests from the artist’s relatives.The late Suri Kasirer POWERFUL DEMOCRATIC REP. Michael Jeffrey, who was gettyimages CHARLES RANGEL (below), who Hendrix’s manager, claimed the OUT WITH THE OLD: GOP stalwart Pirro is dissolving his firm; Democratic city will take over the powerful artist signed over the rights to lobbyist Kasirer is expanding to Albany. House Ways and Means him in 1965. Mr. Jeffrey’s estate is ap images Committee being handled by New York in January, record producer Ed Chalpin. will outline Judge Lewis Kaplan sided with his plans at a the Hendrix family and blocked Crain’s New the so-far anonymous purchase York Business until questions about the music’s Dems sweep the lobby breakfast on ownership are resolved. Tuesday. He will be TWO BROOKLYN HOSPITALS, NEW questioned by Crain’s editor YORK METHODIST and New York Albany’s power brokers realign as Spitzer arrives Greg David and CBS reporter Community Hospital, have Marcia Kramer.The event will applied for a $34 million state BY ANNE MICHAUD AND ERIK ENGQUIST be held at the Sheraton New grant to facilitate their merger. York beginning at 8 a.m. Combining operations would as new york prepares for the arrival of its first Democratic governor in a dozen years, Tickets cost $60, and allow them to shed 100 beds for reservations are being accepted a new total of 604. Both Albany’s lobbying industry is refashioning itself in anticipation. until 2 p.m. today at hospitals are in the New York- Lobbyists with Democratic ties who helped usher in the new administration are opening www.NewYorkBusiness.com. Presbyterian Healthcare ■ offices in Albany. Some Republicans are closing up shop, while others are aligning themselves Click on “Events.” Network. with large national firms or hiring Democrats with charm and connections. Top lobbyists are scrambling to create the perception that they have access to Governor- CORRECTION elect Eliot Spitzer and people such as Paul Francis and Rich Baum, who are likely to be senior Donald Lutt is a senior managing director at GVA Williams. His name was misspelled in the aides in his administration. Nov. 20 story “Time is ripe for renewed border wars.” “In 2007, rightly or wrongly, there will be a firm or firms associated with having influence with the incoming administration,” says David Grandeau, executive director of the state’s See DEMOCRATS SWEEP THE LOBBY on Page 31 THIS WEEK IN CRAIN’S 37 REAL ESTATE DEALS------------------8 GREG DAVID ------------------------------------11 THE INSIDER------------------------------------12 Lite-FM DJ shuffle signals SMALL BUSINESS ------------------- 13 Top station adds Buchner and evening host J.J. WPLJ and co-host of its morning WEEK IN REVIEW -----------------------14 Kennedy had nothing to do with the show. cost-cutting taking place at other But whether Clear Channel is NEIGHBORHOOD personality to easy- listening diet as radio Clear Channel stations in New York saving money with its personnel JOURNAL------------------------------------------16 and across the country. changes may not be the point. revenues fall in NY Nobody believes them. Observers seem to agree that ra- REPORT: PRIVATELY dio operators need to change what they’re doing, and that a music- HELD COMPANIES ---------------17 BY MATTHEW FLAMM Satellite radio heavy format can no longer sustain THE WEEKS AHEAD ----------------30 a commercial station all day. if wltw, the top-rated station in and iPods CLASSIFIEDS ----------------------------------32 the city,feels forced to shift its strat- Revenues falling egy away from the music that made are nibbling satellite radio and iPods are nib- BUSINESS LIVES------------------------ 35 it a success—and toward the chatter bling at audiences, while the Inter- CORPORATE LADDER -----------37 that has become a hallmark of the at audiences net is stealing advertisers.