With State's Film Tax Credit, Ceos Make Bank

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BUILDING-PASS HOARDER TELLS ALL Oh, for the days you just NEW YORK BUSINESS® walked in PAGE 33

VOL. XXX, NO. 24 WWW.CRAINSNEWYORK.COM JUNE 16-22, 2014 PRICE: $3.00 REPORT FORTUNATE 100 Regeneron’s riches How a biotech company’s high-priced, blockbuster drug spawns controversy —and eye-popping pay for executives

BY GALE SCOTT

Every six weeks, Anthony Napoli, 66, a retired Brooklyn schoolteacher, gets an injection of Eylea, straight into the white of his right eye.The procedure is uncomfortable, he said, but staves off an aggressive ailment called age-related wet macular degeneration. Without treatment, 90% of patients who have it are at risk of going blind. Eylea has had a far-reaching impact not only on patients, but also on the company that makes it,Tarrytown-based Regeneron, its executives, and the biotech world in general. The drug, whose $1,850-per-dose monthly cost is paid mostly by See DOSE on Page 18

BLIND TO THE COST: An $1,850- per-month dose of the Regeneron wonder drug Eylea—straight into the white of the eye—can stave off a blindness-inducing form of the eye ailment macular degeneration. veer

With state’s film tax credit, CEOs make bank INSIDE Higher pay Studio, network heads rake in tens of millions, but get even more in incentives encourages Time Warner, which wouldn’t comment, is hardly the only enter- corporate boards BY AARON ELSTEIN tainment giant to benefit from the state’s generosity. CBS paid Chief Executive Leslie Moonves $66 million last year to flex Time Warner paid its chief executive, Jeffrey Bewkes, $33 million last (see list, Page 15) and received $15 million in 2011 and 2012 to pro- their year. Yet that considerable figure is dwarfed by another: $108 million. duce shows such as The Good Wife here. That’s the amount Time Warner has collected from the state of New York NBCUniversal,which paid CEO Steve Burke $31 million in 2013, muscles in the past three years because its HBO and New Line Cinema divisions got more than $100 million from the state in the previous two years to PAGE 13 went to Brooklyn to film TV shows such as Girls and movies including make movies and shows here,including 30 Rock,plus millions more re- Sex and the City 2. cently to move The Tonight Show from Los Angeles. Fox paid CEO Rupert Murdoch $26 million last year while taking THE LIST in more than $50 million from the state in 2011 and 2012. Viacom 24 The Fortunate 100:

5 showered CEO Philippe Dauman with $37 million in 2013 and collected more than $20 million in incentives in the previous two years. New York’s best-paid It’s all thanks to the New York state film and TV incentive program. CEOs PAGE 15 Launched in 2004 with $25 million to encourage TV producers and See TAX INCENTIVES on Page 28 NEWSPAPER 71486 01068 0 20140616-NEWS--0002-NAT-CCI-CN_-- 6/13/2014 6:28 PM Page 1

EDITOR’S NOTE

Light fantastic FYICRAINSNEWYORK.COM

The city’s white elephants don’t get much more elephantine than the Mayor’s HS admissions crumbling New York State Pavilion from the 1964 World’s Fair, a policy not likely to pass rusting Stonehenge from the Space ayor Bill de Blasio’s luck in Age that’s in such pathetic shape Albany has been mixed: He for a 50-year-old that it has been earned victories on fenced off to protect passersby Glenn Coleman M prekindergarten funding and traffic from disaster. It would cost an cameras, but not yet on a tax hike, a estimated $14 million to simply minimum-wage increase or a lower speed demolish the thing—those Jetsons-era Observation limit. And last week it became clear that Towers and that crazy ellipsoid known as the Tent of the state Legislature isn’t about to change Tomorrow. (Nothing says temporary quite like “tent” the admissions process that he believes does, does it?) The official guesstimate to merely largely excludes blacks and Latinos from stabilize the site, with no public access, is around the city’s top public high schools. ¶ Allies $43 million, and to reopen it to visitors at least of the mayor have introduced a bill to newscom $52 million. Damned If You Don’t, meet Damned If allow Stuyvesant, Bronx Science and Brooklyn Technical high schools to consider applicants’ You Do. Queens Borough President Melinda Katz grades, attendance and state test scores, rather than just the aptitude exam that for decades has made clear to me last week which side she’s choosing: been the sole criterion for entry. But the legislation—which some contend would lower standards— She says she has found about $1 million in her is going nowhere, The New York Times reported. ¶ The issue hits close to home for Mr. de Blasio: borough budget to upgrade the electrical systems in His son, Dante, is among the 8% of Brooklyn Tech students who are black, and his deputy mayor the pavilion so it can light up the night’s skyline from for education initiatives, Richard Buery, is an African-American graduate of Stuyvesant, where Flushing Meadows Corona Park as brightly as the only seven blacks and 21 Hispanics were offered admission this year. Nearly three-quarters of steel Unisphere globe now does. “Once we light it Stuy’s 3,300 students are Asian. ¶ The de Blasio administration can unilaterally alter the up,” she said of her strategy,“the people will make the admissions process at the five other high schools that rely on the 2.5-hour exam, but has been case [for the $40 million being sought from the city waiting for Albany to change the state law that compels Stuy,Tech and Bronx Science to use it for restoration].They’re going to see it when they’re exclusively.That could be a while. —erik engquist landing in a plane.They’re going to see it when they are stuck on the Van Wyck Expressway trying to get VICE SQUAD. Time Warner is in talks 2009, just after it narrowly avoided into Manhattan.They’re going to see it on the cable to buy a big stake in the multiplatform collapse the previous fall. Mr. Ben- HOORAY! Vice Media for as much as $1 billion. mosche will leave the board and be- REAL ESTATE news channels: It’s what they show in the background Founded in 1994,Vice draws a young come an adviser to the company. … INVESTOR on CNN, on Al Jazeera, when they’re reporting a OCCUPY WALL STREET SETTLEMENT. Jason Buzi, the demographic that Time Warner millionaire who story from Queens.” You mean it’s your Brooklyn hopes to capture. … R.I.P. GLENN The city will pay nearly $600,000 to hid cash Bridge? I asked. She declined to take the BRITT. Longtime Time Warner Cable 14 Occupy Wall Street participants in across San CEO Glenn Britt died of cancer last a suit that accused police officers of Francisco, interborough bait. “It’s a significant, iconic structure,” brought his week at 65. He had spent more than a unlawfully arresting them in 2012. money- she said. “And it’s ours.” I look forward to watching decade at the helm, and oversaw its The city will also pay $333,000 in le- scavenger hunt spinoff from its parent company in to New York for the glow from the pavilion during my next gal fees. Attorneys for the plaintiffs City. nighttime landing at LaGuardia. 2009. … GOLDMAN PAYS UP. Gold- said it was the biggest settlement yet man Sachs and Bain connected to the Capital Partners will movement. … OY VEY! CROWN HEIGHTS THIS WEEK IN CRAIN’S pay $67 million and ‘We do not FOUR $54 million, respec- STARBUCKS. In yet STRIPPERS tively, to settle claims feel justice another sign that the were arrested IN THE BOROUGHS------3 for drugging that they intentional- was served Brooklyn neighbor- wealthy men IN THE MARKETS------4 ly drove down prices hood is gentrifying, and scamming of takeover deals by for us’ the coffee franchise them out of SMALL BUSINESS ------5 more than conspiring not to out- —Egon Smullyan, a will open an outpost $200,000. THE INSIDER ------6 bid each other. The customer who lost more at the base of a new case involved eight than $19,000 after popular residential building OPINION ------

10 istockphoto buyout deals totaling Brooklyn wedding venue at 341 Eastern Park- STEVE HINDY ------11 more than $100 bil- ReBar shuttered. Owner way this fall. … NEW lion. … NEW AIG CEO. Jason Stevens will spend up KNICKS COACH. when they were both with the Los GREG DAVID------11 American Interna- to 10 years in prison for tax Derek Fisher, an 18- Angeles Lakers. ... NEW HEDWIG. REAL ESTATE------12 tional Group tapped evasion year NBA veteran, Fresh off his Tony Award win for best Peter Hancock, the signed a five-year, actor,Neil Patrick Harris will leave his REPORT------13 head of its property/casualty division $25 million contract to be the head role as the main character of Hedwig THE LIST ------15 since 2011, as its new chief, effective coach of the New York Knicks. Mr. and the Angry Inch on Aug.17.He will GOTHAM GIGS CLASSIFIEDS ------26 Sept. 1. He will succeed Robert Ben- Fisher—who has no coaching experi- be replaced by Andrew Rannells,who Ned Sullivan is fighting to mosche, who was brought out of re- ence—won five championships play- starred in The Book of Mormon. NEW YORK, NEW YORK ------preserve New Yorkers’view of 33 tirement to lead the insurance giant in ing for Knicks President Phil Jackson —emily laermer the Palisades P. 8 SOURCE LUNCH------34 CORRECTIONS (SEE PAGE 30) STORIES TO WATCH THIS WEEK vol.xxx,no.24,june 16,2014—Crain’s New York Business (ISSN 8756-789x) is published weekly, except for double issues the weeks of June 23, July 7, July 21, Aug. 4, Aug. 18 and Dec. 22, by Crain Communications Inc.,685Third Ave.,New York,NY 10017.Periodicals postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: June 17: Long June 17: Former June 19: Apparel June 20: Deadline Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Island City Goldman director maker PVH Corp.’s to register with MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one Partnership’s Rajat Gupta begins annual stockholder assigned pre-K year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved. LIC Summit two-year sentence meeting school for insider trading.

2 | Crain’s New York Business | June 16, 2014 20140616-NEWS--0003-NAT-CCI-CN_-- 6/13/2014 6:23 PM Page 1

IN THE BOROUGHS Queens: In with the inn crowd BROOKLYN

Hotel construction ROOM WITH A VIEW: The Z Industry Hotel in Long Island City gets in the borough is an average $225 per night. booming, especially is rising in Long Island City in Sunset BY LISA FICKENSCHER

Most visitors to New York City Revived complex may think of Queens as the place where change working-class they arrive and leave via the airports—but it turns out that the bor- neighborhood ough is increasingly where travelers rest their heads at night. Queens is leading the outer bor- BY JOE ANUTA oughs in new hotel development, spurred by one of its hottest neigh- Nearly two years ago, a growing borhoods, Long Island City, which custom-lighting company left its has become a magnet for nearly cramped quarters in Greenpoint every prominent hotel brand. and headed south to another Brook- Queens added about 500 rooms this lyn waterfront neighborhood, Sun- year through mid-April,or 9% more set Park. There, four-year-old Roll than the same period last year, ac- & Hill doubled its head count,to 24. cording to STR, a research firm that The light maker is one of a grow- tracks hotel data. By contrast, ing number of companies—from Brooklyn did not generate any new garment makers to boutique cat- hotel rooms during the same period. litter-box designers—setting up Queens may not enjoy Brook- shop in Industry City,lured by an in- lyn’s cachet, but it dwarfs its hipper NUMBER10Kof hotel NUMBER4K of rooms in creasing rarity in New York City:af- neighbor in hotel rooms. There are rooms in Queens Brooklyn, where rates fordable industrial space.New man- 10,489 rooms in Queens compared tend to be higher agement at the 16-building with just 3,986 in Kings County (of Source: STR waterfront complex has begun a

See HOTELS on Page 30 jennifer altman See SUNSET on Page 19

June 16, 2014 | Crain’s New York Business | 3 20140616-NEWS--0004-NAT-CCI-CN_-- 6/13/2014 6:21 PM Page 1 IN THE ‘Affordable’ at $530K per unit MARKETS by Aaron Elstein Preservation and Development, the Sleek new housing price tag to develop each unit for the in Harlem has much Bloomberg-era project comes to more than $530,000, excluding the to offer, but the price cost of building the classroom space is unsustainable and the museum. Pushing higher BY JOE ANUTA That price puts it significantly above those of similar newly con- Mayor Bill de Blasio, City Council structed affordable buildings in the Speaker Melissa Mark-Viverito and city, according to affordable- other high-ranking elected officials housing experts who examined the were all smiles when they rode up to funding numbers and spoke with Harlem last week. They went to Crain’s on the condition of anonymi- laud the completion of a building in ty.Typically, the per-apartment cost the Sugar Hill section that is chock- of similar projects ranges from about full of handsome, permanently af- $300,000 to $400,000 per unit. fordable apartments,even as the rel- Sugar Hill was so pricey that it atively high cost of developing those helped push the average cost for new buck ennis units had housing experts shaking SWEET DEVELOPMENT: Sugar Hill building low-income rentals to $400,000 per their heads. will include museum and pre-K space. unit in 2012, a figure the city The distinctive, 124-unit Sugar deemed abnormally high,according Hill Development at 404 W. 155th to an HPD document that tracked St.was designed by starchitect David and housing for 25 homeless fami- averages across several types of ap images Adjaye, and will include a children’s lies. But according to data from the affordable projects. That same doc- museum,a universal prekindergarten city’s Department of Housing See AFFORDABLE on Page 32 Cerberus’ sticky

CASH COW: In nine years, Hamdi trigger finger Ulukaya has grown Chobani serving Chobani into a company with our days after the Dec. 14, 2012, massacre in $1 billion in revenue. Newtown, Conn., Cerberus Capital Management up an IPO? announced it would sell a holding called Freedom FGroup prepares itself for a possible next big —and with good reason. Freedom owns Bushmaster, Yogurt company’s step: going public. one of whose rifles was used in the elementary-school restructuring hints at Having reached $1 billion in an- shooting. What’s more, the father of the New York private- nual sales in less than nine years equity firm’s CEO, Stephen Feinberg (pictured), reportedly path for lucrative since its founding in 2005, Chobani is now restructuring its 1,200- lives in Newtown. public offering person operation to tighten its bal- Yet 18 months later, Cerberus is sticking to its guns. It ance sheet. In April, having incor- hasn’t sold Freedom Group, even though it has received at porated in the state of Delaware, it least one $1 billion offer for the company. One reason BY THORNTON MCENERY announced plans to reduce head

count at its production facility in bloomberg news Cerberus might be holding on: The gun business these days Yogurt became New York’s official Twin Falls, Idaho, and consolidate is simply too good to kiss off. state snack last week in no small part its front office by adding positions at “Chobani has been checking off because of Chobani,the best-selling its headquarters in Norwich, N.Y., the pre-IPO boxes,” said Matt Americans are on a pace to buy and Strategic Restaurants, which brand in the U.S., whose rapid in the state’s Southern Tier, and Turlip, an analyst at Manhattan- more than 22 million firearms this runs 250 Burger King restaurants and growth has made it the darling of moving its sales staff to Manhattan based PrivCo, which tracks private year, according to brokerage firm 20 TGI Fridays. business and political leaders up- from Charlotte, N.C. Chobani also companies. “They’ve also laid off ConvergEx Group.Before 2008,annu- None of those companies seems state. announced that it had received a factory workers and added to head- al sales were in the range of 8 mil- likely to have appreciated in value Albany’s affirmation adds sym- $750 million investment from pri- quarters. This combination is clear lion to 10 million. More than 100 during the past few years as Free- bolic support for the company as it vate-equity fund TPG. See CHOBANI on Page 32 million new weapons have been dom Group has. sold since the financial crisis, Con- As an example of how well gun vergEx said, or one for every three makers are doing, $100 invested in Americans. the shares of publicly traded Sturm Freedom Group, whose brands Ruger & Co. six years ago was worth STATS AND THE CITY by Nicholas Wells also include Marlin and Reming- about $1,400 at the end of last year. HAIL TO THE ton, is riding this wave. The North And since the Newtown massacre, NUMBER of PORTION of total COST to the MTA of each Carolina-based company reported Sturm Ruger shares have risen by TAXI: A state riders served by citywide green-taxi Access-A-Ride trip. $1.27 billion in sales last year— 61%—nearly double the S&P 500’s appeals court 6.9M 27% $66 green cabs since their June pickups in Queens, or 1.6 million, Green cabs and the Taxi of about 60% from firearms and most rise during the same period—while last week 2013 debut during the cabs’ first year Tomorrow could cut that in half of the balance from ammunition. Smith & Wesson’s have more than overturned a That represented a 36% jump over doubled. ban on the AMOUNT raised 2012. Profits last year clocked in at There have been reports that proposed “Taxi $49.5K by Evgeny $60 million, nearly nine times Cerberus has struggled to find a of Tomorrow,” Freidman, owner of one of the city’s 2012’s total of $7 million. Wall Street bank to manage a sale reviving the largest yellow-taxi fleets, for That would appear to make it a of Freedom Group. The firm plan for a new Bill de Blasio’s 2013 star performer in Cerberus’ portfo- wouldn’t comment. But what’s also fleet of yellow mayoral campaign lio of companies, which includes clear is that while Cerberus looks cabs for NYC. supermarket chain Albertson’s, for a buyer, it owns a business that Meanwhile, British pub company Admiral Taverns is, well, booming. Ⅲ green cabs 17.4% have picked up INCREASE in 5.8 million motor-vehicle DECLINE in Time Inc.’s share accidents involving fares in their Sources: NYC Taxi and Limousine price last week after the a taxi or livery vehicle Commission, NYC Campaign Finance magazine publisher was spun first year. Board, NYPD, City Council Transportation 4% in April, compared with the same month last year Committee’s June 9, 2014, hearing off from Time Warner. Citigroup analysts newscom believe the company might be acquired within ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY

bloomberg news the next year by rival Meredith Corp.

4 | Crain’s New York Business | June 16, 2014 20140616-NEWS--0005-NAT-CCI-CN_-- 6/13/2014 3:16 PM Page 1

SMALL BUSINESS Entrepreneurs join the checkless economy Once a business both consumers and young, tech- enables businesses to receive imme- range from 1.5% per transaction to savvy entrepreneurs like Mr.Wahba diate credit-card payments for in- more than 3%, according to the Na- staple, the personal opt for digital payments. The total voices through such gateways as tional Retail Federation. That number of checks from businesses Stripe and PayPal. means the fee for a $2,000 monthly check is now seen and consumers Meanwhile,more businesses now rent payment could be anywhere that were paid de- have the capability to easily pay oth- from $30 to $60 or more. as a nuisance clined by 9.2% 16% er firms electronically by automated ANNUAL No more rubber checks per year from DECLINE clearinghouse, or ACH, payments BY ELAINE POFELDT 2009 to 2012,and in business-to- from their checking accounts, owing In contrast,debiting a customer’s their value business checks, to services such as Zipmark. “We’re bank account by ACH costs from 10 ames Wahba ditched the idea dipped by 6.3% 2009 to 2012 seeing more banks start to think cents per payment (for high-volume Source: Federal Reserve of accepting paper checks just annually in that Payments Survey, 2013 about offering a few more payment merchants) to $3.50 (to process a one month after he started period, according options for their small-business cus- check by a high-risk payer), accord- running his Manhattan co- to the Federal Reserve Payments tomers,” Mr. Bhattacharya said. ing to ACHQ, an electronic- working facility, Projective Survey released in December 2013. Still,though checks made up only payment processing company based Space. Tracking down the 15% of all noncash payments in in Miami. Processing a paper check J Easier digital payments checks from his on-the-go 2012—down from 46% in 2003— generally costs $2.75 to $4, Mr. tenants was so difficult that he New York City businesses may be businesses should consider their cus- Bhattacharya said. quickly transitioned to requiring all abandoning checks faster than those tomers’ preferences carefully before Mr. Wahba said the credit-card buck ennis AUTOMATED: James Wahba charges all of his payments to be made by credit card. in other places. Many of the city’s refusing to accept checks,say experts. fees are well worth it, given that au- co-working tenants by credit card, after Since that time in 2011,Projective large number of freelancers, micro- Chris Brundage, chief operating tomated payments save him time finding paper checks inconvenient. Space has automatically debited ten- businesses and co-working spaces officer of Sage Payment Solutions and help him avoid bounced checks. ants’ payments via mobile processor like Mr. Wahba’s take advantage of EFT in Fort Walton Beach, Fla., Jeremy Harper, senior invest- Stripe, a competitor of Square whose cloud-based invoicing software such suggests that businesses accept ment analyst at Entrepreneurs mum. Before Mr. Harper tried Zip- processing rates start at 2.9% plus 30 as FreshBooks and Harvest. checks but convert them to ACH Roundtable Accelerator in Chelsea, mark,residents were “clamoring”for cents per successful transaction. They offer an increasing array of payments.“It’s less expensive than a also finds that accepting payments something more convenient than “No one had a problem with it,” digital payment options, notes for- credit-card payment, and they can from tenants electronically makes paper checks,he said.“It’s much eas- said Mr. Wahba, CEO.“A lot of our mer Citigroup executive Jay Bhat- still have access to the payment in a sense. He uses Zipmark to invoice ier for tenants,” he added. Ⅲ members like paying by credit cards. tacharya, CEO and co-founder of couple of days,” he said. tenants, processing “less than Some can get points and rewards.” Zipmark, a Manhattan-based firm Businesses that want to get paid $100,000” a month this way; pay- To sign up for Crain’s Checks, a mainstay of monetary that lets companies accept payments digitally should note the fees that ments get direct-deposited by ACH SMALL BUSINESS newsletter, go to exchange for centuries, are fading from customers’ checking accounts come with this so they don’t eat into into the bank. Zipmark charges him www.crainsnewyork.com/smallbiz. away with hardly any fanfare, as online. For instance, FreshBooks profits, experts say. Credit-card fees 1% per transaction, up to a $5 maxi-

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June 16, 2014 | Crain’s New York Business | 5 20140616-NEWS--0006-NAT-CCI-CN_-- 6/13/2014 6:26 PM Page 1 THE INSIDER by Andrew J. Hawkins

NEW TARGET: Pawn Stars, filmed at this Las Vegas shop, and other nonfiction TV shows are being eyed by city lawmakers for their pay practices. newscom Reality TV in City Council drama

he City Council has found a new industry to attack: reality TV. T The council’s labor committee will hold a hearing June 25, titled “The Real Reality of Reality TV,” on allega- tions of overtime violations and related “wage theft.” It will also drum up attention for council members’ labor allies who have been fighting reality-TV producers for almost a year. Councilman Daneek Miller, who chairs the committee, last week dispatched letters to ITV Studio, a U.K.-based company with offices in Manhattan, and ITV subsidiary Leftfield Pictures requesting their executives to testify.The History Channel’s Pawn Stars, A&E’s The First 48, : Business of Series Presents Discovery’s Fatal Encounters and National Geographic’s Doomsday Preppers are being scrutinized.

“Everybody thinks, wow, these about 130,000 workers, mostly in are glamorous jobs, and the salary scripted media,which is eligible for must be commensurate with that,” tax breaks. Yet the scriptwriting Mr.Miller said.“And the fact of the and editing of reality TV consti- matter is they’re not. It’s another tutes 40% of New York film and underpaid industry.” TV work, Mr. Miller said. The Writers Guild of America Council members are also pres- East,which tipped off Mr.Miller to suring car washes over wage issues these issues,last year surveyed 1,200 and worker conditions. Restau- writers,producers and freelancers in rants were a focus of paid-sick- reality TV and found they were los- leave bills passed recently. ing,on average,$30,000 each in un- The state Labor Department, paid overtime and other benefits. not the city,enforces wage laws and “It’s just incredibly in- investigates claims of employer Photo Credit: Buck Ennis, Crain’s New York Business equitable,” said one freelance pro- abuses. Short of dressing down in- ducer who has worked on shows dustry executives, there’s little the aired by PBS, the Weather Chan- council can do. A spokeswoman The Business of Taxis: Innovating an Industry nel and Investigation Discovery, for the Labor Department said and recalled toiling for 12 to 14 there were no specific complaints The yellow taxi is a New York City institution. However, the City Wednesday, July 23, 2014 hours a day sans overtime pay. on file about abuses in reality TV. has opened its arms to other avenues of private transportation, “I feel like these [production] The endgame for the council John Jay College of studios are taking advantage of and the Writers Guild, though, but not without a ﬁght. Join Crain’s as we discuss how Criminal Justice people who are professionals,” the does not appear to be regulation or to innovate a highly regulated industry that’s often resistant producer said. unionization,but an unenforceable to change. 524 West 59th Street It’s unclear whether ITV or “code of conduct” for the indus- PANELISTS: 8:30 a.m. – 9:00 a.m. Networking Leftfield will testify.“ITV Studios try—and media attention. Breakfast America is in ongoing talks with Lowell Peterson, executive direc- Cira Angeles, Spokesperson, Livery Base Owners Association the WGA East and has no further tor of the WGA East, acknowl- 9:00 a.m. – 10:00 a.m. Program Evgeny Freidman, Chief Executive, Taxi Club Management Inc. comment at this stage,” a spokes- edged that dragging a few produc- woman said.Leftfield Pictures also tion companies through the mud Additional panelists to be conﬁrmed. Cost to Attend: $80 individual ticket(s) declined to comment. could send a message that abuses The scrutiny could hurt the won’t be tolerated. MODERATOR: $800 priority reserved seats of 10 Jeremy Smerd, Managing Editor, Crain’s New York Business reality-TV industry’s chances of “Television is a medium that re- You must be pre-registered to attend this event. winning a piece of New York state’s quires public support—they need No refunds permitted. $420 million-a-year film and tele- audiences to care,” Mr. Peterson Register Today >> For more information: vision tax-credit program (see sto- said.“I think there’s some sensitiv- www.crainsnewyork.com/events-bizoftaxis Adrienne Yee ry, Page 1). The industry employs ity to having scrutiny.” Ⅲ Phone: 212-210-0739 Host Sponsors: Email: [email protected] QUOTE OF THE WEEK: ‘You’re going to make me elaborate’ For sponsorship information, contact Joanna Harp at —Mayor Bill de Blasio, after an awkward silence greeted his one-word answer 212-210-0278 or [email protected]. (“No”) on whether his dislike of the “Taxi of Tomorrow” had changed

6 | Crain’s New York Business | June 16, 2014

20140616-NEWS--0008-NAT-CCI-CN_-- 6/12/2014 6:40 PM Page 1

BUSINESS 17K Open ‘wage-theft’ investigations by the NYS Labor Dept. in Aug. 2013, up 150% from 2008 PEOPLE Source: State comptroller’s office

EXECUTIVE MOVES

TuneCore: Scott Ack- erman, 57, was promoted to chief executive at the online music distribution and music publishing administration service. He previously was president and chief operating officer. Elderplan Inc.: David Wagner,41,was named chief financial officer at the not-for-profit health plan. He previously held the position of vice president of finance at MJHS. Piquet Realty: Daniel Piquet,34,was promoted to president at the luxury real estate company. He previously was chief financial officer. Asphalt Green: Maggy Siegel,57, joined the sports and fitness nonprofit as executive director. She previously was acting chief executive at CancerCare. Redbook: Meredith Rollins,42,was promoted to editor in chief of the shopping and style magazine. She previously was executive editor. New York-Presbyter- ian/Columbia Uni- versity Medical Cen- ter: Dr. William VIEW FINDER: Levine, 49, was Ned Sullivan says appointed chair of a proposed office the Department of tower in New Orthopedic Jersey would ruin Surgery at the a Hudson River Columbia University College of vista enjoyed by New Yorkers. Physicians and Surgeons and orthopedic surgeon in chief at the academ- ic medical center, effective July 1. He previously was the department’s vice

buck ennis chair for education, director of its residency and fellowship programs, GOTHAM GIGS chief of the shoulder service, and co- director of the Center for Shoulder, Elbow & Sports Medicine. Cooper-Hewitt, National Design Muse- um: Brooke Hodge, 54, will join as deputy director, effective July 16. She is director of exhibitions and publica- This fight’s a real cliffhanger tions at Los Angeles’ Hammer Museum. WABC: Rita Cosby, 49, joined the radio station as co-host of The Ride Taking a dim view of LG’s plan for Palisades HQ Home. She continues as a special correspondent for Inside Edition and Anyone who’s ever dreamed of an apartment Mr. Sullivan, 59, launched two lawsuits to block frequent host and reporter for ‘Tens of CNN/HLN. overlooking Central Park or been wowed by the the development and has waged a campaign that Meredith Corp.: Susan Pocharski,49, thousands city’s towering skyline knows the power of a good has won support from key figures such as Gov. was appointed entertainment director of More magazine. She previously view. ¶ Ned Sullivan is waging a fight to preserve Andrew Cuomo and former New Jersey Gov. was entertainment director at Ladies’ of people what he says is the city’s ultimate vista: a stretch of Christine Todd Whitman. A New Jersey state Home Journal. K2 Intelligence: Julian Moore,37, a day the Palisades cliffs on the New Jersey side of the Senate subcommittee on June 5 recommended a joined the investigative and risk ana- Hudson River, north of Fort Lee, that looks much height limitation that would block the tower. lytics services firm as a senior manag- witness as it did when George Washington fought the That bill would need approval from Gov. Chris ing director. He previously was assistant U.S. attorney for the Southern this British in upper Manhattan during the Christie, who has been silent on the issue. ¶ Mr. District of New York. Revolutionary War. ¶ “Tens of thousands of Sullivan, a Williams College and Yale manage- Thacher Associates: national Kimberly D. Hardy, people a day witness this national treasure and ment and forestry grad, is a former environmental 51, joined the cor- take inspiration and renewal from it,” Mr. commissioner of Maine and deputy commis- porate intelligence, treasure’ investigative and Sullivan said. ¶ To keep it that way, Mr. Sullivan, sioner of New York’s Department of Environ- integrity risk- who is president of environmental organization mental Conservation. He believes building management firm Scenic Hudson, is fighting Korean electronics shorter will be better for LG in the long term. ¶ as managing director. She previ- giant LG, which won permission last year to build “They could still have a world-class headquarters ously was deputy commissioner and a 143-foot tower for its U.S. headquarters there. and create the jobs here with this project,” Mr. special counsel for regulatory compliance at the City of New York’s That ruling overturned an ordinance that Sullivan said. “And then we’d celebrate them for Department of Housing Preservation restricted buildings from breaking the tree line. ¶ being environmental stewards.” —daniel geiger and Development.

8 | Crain’s New York Business | June 16, 2014 20140616-NEWS--0009-NAT-CCI-CN_-- 6/12/2014 6:41 PM Page 1

Eastern Consolidated: Annie Meyding,40, CORPORATE LADDER joined the real estate investment services firm as a director in the retail leasing divi- IT ALL ADS UP FOR SAATCHI’S NEW CHIEF TECH OFFICER sion. She previously CHRISTOPHER KIEF said he didn’t know much about the advertising industry when, right out of college, he signed on with a friend to was a director at Walk- build a website for Red Bull. “I had a beat-up pickup truck that I was trying to replace, and they were paying us,” he said. er Malloy & Co. As the new chief technology officer for advertising agency Saatchi & Saatchi New York, Mr. Kief, 36, now has 10 years of Christopher Matousek, 27, joined as director for financial services. He previ- experience building software-as-a-service platforms. For instance, in 2007, while at Crispin Porter + Bogusky, he helped develop ously was an associate in the valuation Domino’s Pizza Builder and Pizza Tracker, which let customers place and track their orders online. At the time there was nothing like it. and advisory services group at CBRE “I like to think about what we can make for brands—for ourselves—that will live on past the simple ad campaign,” said Mr. Group Inc. Kief, who most recently was executive technology director at TBWA Worldwide and chief tech officer of Pilot.is, a design unit within American Technion Society: Scott TBWA. At Saatchi & Saatchi, whose clients include General Mills, Lenovo and Procter & Gamble, Mr. Kief will help clients build McGrath, 40, joined the organization, digital products that enhance their brands and businesses. Ad Age, Crain’s sister publication, estimated that Saatchi & which provides support to the Tech- nion-Israel Institute of Technology, as Saatchi Worldwide’s global revenue totaled $904 million in 2013. The company is a Publicis Groupe subsidiary. director of leadership development “Advertising used to be print and television, and now that canvas is incredibly diverse,” said Saatchi & Saatchi New and campaign. He previously was York Chief Executive Brent Smart. “Chris is a maker. He intimately understands the technology.” —NAZISH DHOLAKIA associate director of new camp initiatives at the Foundation for Jewish Camp. Carter Ledyard & Milburn: Yoram Keinan, 46, who joined the law firm in March, was named chair of the tax department. He previously was a partner at Green- berg Traurig. Tribal Worldwide: Kyle Snarr, 37, joined the digital agency as head of client development and marketing, a newly created position. He previously was director of new business for Struck. New York State Bar Association: Glenn Lau-Kee, 64, was appointed president. He continues as a partner at Kee & Lau-Kee. International Chamber of Commerce: J.P. Duffy, 39, was appointed a QU.S. repre- BE sentative on the business organization’s commission on arbitration. He continues as an international arbitration partner at K&L Gates. Pace University: Joseph Ianniello, 46, was appointed to the board of trustees. He continues as chief operating officer of CBS Corp. Specialized Nancy Garvey, 64, was appointed to the board of trustees. She previously was vice president and controller at Allied Signal. Vibrant Media: Ray Berry, 36, joined the advertising company as senior vice pres- Replace potential liabilities with a sense of ident of finance. He previously was chief financial officer for North Ameri- ca at Mood Media. security with QBE—a company whose experience Taykey: Adam Kapel, 44, joined the trends-automation company as senior and expertise allow us to say ‘yes’ to highly vice president of marketing and insights. He previously was vice presi- unique insurance needs. dent of mobile advertising strategy and solutions at Velti. NYC & Company: Christopher Heywood, q.BOBHFNFOU1SPGFTTJPOBM-JBCJMJUZ 40, was promoted to senior vice president of global communica- q"DDJEFOU)FBMUI tions at the marketing, tourism and part- q"WJBUJPO nership organization for New York City. He previously was senior vice president q5SBEF$SFEJU of communications. Avison Young: William Picoli, 58, joined the commercial real estate services firm as senior vice president. He previously was senior managing director in New- mark Grubb Knight Frank’s advisory division. John T. Farrell, 35, joined as senior vice president. He previously was a managing director in Newmark Grubb Knight Frank’s advisory division. Across all areas, our experienced Specialty Lines team Elad Group: Samantharo Sax, 30, was provides superior claims handling and has the ability to promoted to executive vice president of underwrite multiple coverages and tailor comprehensive marketing and sales at the real estate company. She was previously director of solutions to your risks. So be specialized—and we’ll be marketing and sales. here to make things possible. —nazish dholakia For information visit QBEspecialized.com EXECUTIVE PROMOTIONS @QBENorthAmerica The fastest way to get an announcement into Crain’s is to submit online. Fill out the form at www.crainsnewyork.com/section/ QBE and the links logo are registered service marks of QBE Insurance Group Limited. executive_moves. The Executive Moves column © 2014 QBE Holdings, Inc. is also available online.

June 16, 2014 | Crain’s New York Business | 9 20140616-NEWS--0010-NAT-CCI-CN_-- 6/12/2014 5:59 PM Page 1

OPINION CRAIN’S NEW YORK BUSINESS

No more city nitpicking Rance Crain editor in chief publisher, vp Jill R. Kaplan EDITORIAL uilding in this city is expensive. Always will make the process more efficient and navigable. Ms. Burden’s editor Glenn Coleman be. Land? They aren’t making much of it successor, longtime real estate executive and development managing editor Jeremy Smerd deputy managing editors Valerie Block, anymore, we hear—not since Battery Park consultant Carl Weisbrod, says City Planning is now willing Erik Ipsen City, anyway. Labor and construction costs? to certify project applications that are technically complete, assistant managing editors Barbara Benson, Erik Engquist Sky high. Engineering? Complex, typically. thus starting the seven-month review, even if some elements senior news producer Amanda Fung contributing editor Elaine Pofeldt Community opposition? Inevitable. might trigger objections along the way. Perhaps even more columnists Greg David, Steve Hindy, Alair Townsend But the city’s own agencies should not important: The mayor’s proposed budget funds a 13% senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, Matthew Flamm, contribute to this collection of cost drivers. Unfortunately, increase in City Planning staff. Daniel Geiger, Adrianne Pasquarelli they have long done so. Mr. Weisbrod has also spelled out more clearly what is reporters Joe Anuta, Chris Bragg, B Andrew J. Hawkins, Irina Ivanova, The Bloomberg administration’s unusually powerful expected of projects so developers won’t have to redesign Thornton McEnery reporter/videographer Ken M. Christensen planning commissioner, Amanda Burden, was known them as often. news producer Emily Laermer during her 12-year tenure for demanding that projects meet Technology upgrades web reporter/producer Streamlining Nazish Dholakia her exacting design standards. She insisted on modifications are also in the works, art director Steven Krupinski that ranged from the shape of a proposed skyscraper to the a thicket that although the agency is deputy art director Carolyn McClain staff photographer Buck Ennis plantings on its perimeter. Developers even switched robs New York still behind the times copy desk chief Steve Noveck architects in their attempts to appeal to Ms. Burden, who (it will be a while yet copy editor Thaddeus Rutkowski data editor Suzanne Panara had an excellent eye but rarely seemed sensitive to costs. of housing, jobs before applications researchers Malik Singleton, Nicholas Wells Another bottleneck is simply numerical: The Department can be submitted editorial interns Valentina Cordero, and revenue Mark Fahey, Gianna Lakenauth, Katrina Samuelson of City Planning lacks the staffing to move projects quickly electronically). conferences and events editor into the seven-month public-review process for rezonings. Streamlining the Jessica Kramer ADVERTISING, MARKETING AND PRODUCTION Between Ms. Burden’s meticulousness and the process will save advertising director Joanna Harp understaffing at her agency, developers could only guess at developers a bundle. sales manager Irene Bar-Am senior account managers how long it would take to get the review process started: a They won’t be able to keep it all—the mayor will ask them to Jill Bottomley Kunkes, Courtney McCombs, year if they were lucky, maybe three if they weren’t. If there’s plow some into affordable housing—but builders want to Suzanne Wilson director of custom content Trish Henry one thing builders hate more than uncertainty, it’s delay. build, not twist in the wind while paying bankers.The city account executives Lauren Black, Rob Pierce events coordinator & scheduler When projects drag on, the meter keeps running on loan stands to gain not only housing and jobs, but also tax Alexis Sinclair interest, consulting expenses, legal fees and design costs. revenue, as projects come online faster.The administration’s credit Todd J. Masura (313-446-6097) director of audience & content But Mayor Bill de Blasio’s administration is pushing to effort could be a win all around. partnership development Michael O’Connor senior marketing manager Catherine Schutten director of conferences & events COMMENTS Courtney Williams CRAIN’S ONLINE POLL events coordinator Adrienne Yee reprint account executive Alicia Samuel production and pre-press director Simone Pryce ONLINE AND INTERACTIVE SERVICES Clouds on the Verizon Rosemary Maggiore general manager A proud group of New Yorkers It’s important to understand owner wants FiOS.That’s why TO SUBSCRIBE: is installing advanced fiber- For print and digital subscriptions or customer how Verizon is building its fiber Verizon has engaged city offi- service, e-mail [email protected] optic cabling throughout the network throughout New York cials on improving the process, or call 877-824-9379 (in the U.S. and Canada) or buck ennis city, in all five boroughs, as City and also to understand the and has discussed changes with 313-446-0450 (all other locations). $3.00 a copy for called for in the cable-TV fran- challenges it is facing through the real estate industry to over- the print edition; or $99.95 one year, $179.95 two WHO IS TO BLAME FOR THE years, for print subscriptions with digital access. chise granted to Verizon. Since this process. come access obstacles. Micro- www.crainsnewyork.com/subscribe MTA’S RECENT PROBLEMS? some tend to confuse cable TV The initial challenge is trenching (bringing fiber TO ADVERTISE: and Internet access, and the re- bringing fiber down the streets through surgical incisions in Politicians. Lawmakers underfund the transit Contact Irene Bar-Am at system and meddle in its operation. quirements of Verizon under of the city (also called “passing” streets) is an example of how [email protected] or call 212-210-0133. the franchise agreement buildings with fiber).This is ac- the city and Verizon worked to- www.crainsnewyork.com/advertise MTA leaders. Tom Prendergast is the fourth (“Waiting for FiOS,” June 9, complished by placing fiber in gether to invent a new and easi- FOR INFORMATION ON OUR EVENTS: CEO in five years. Too much turnover. 2014), we wanted to clarify our the underground conduit sys- er approach to getting fiber into Contact Courtney Williams at Organized labor. Transport Workers Union obligations under our franchise, tem and also stringing it along multiapartment structures. [email protected] or 212-210-0257. www.crainsnewyork.com/events Local 100 members are overpaid and have where we stand today with utility poles. Verizon is on pace No other communications archaic work rules. those obligations and the next to pass all buildings in all five company has stepped up to de- TO CONTACT THE NEWSROOM: steps in the most ambitious boroughs with fiber this year, ploy fiber optics through the 685 Third Ave., New York, NY 10017-4024 No one. The system has an incredibly difficult fiber-optic infrastructure proj- per its franchise obligations. entire city. Only Verizon is editorial phone: 212.210.0277 job and does it fairly well. fax 212.210.0799 ect of any city in the country. The company already has in- committed to installing fiber Entire contents ©copyright 2014 Crain Communications Inc. Date of poll: June 9 Verizon’s $3 billion fiber- stalled 89 million feet—or across all of New York, which is All rights reserved. ®CityBusiness is a registered trademark 138 votes optic infrastructure upgrade for 17,000 miles—of fiber in the important as an economic driv- of MCP Inc., used under license agreement. the city will reach every neigh- city to meet these obligations. er, as an agent of technological CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS 19% borhood, regardless of income The next challenge is to change and for future telecom- chairman Keith E. Crain level.To suggest otherwise, as bring the fiber from the streets munications resiliency. president Rance Crain the Crain’s article did, is dis- into private properties so that This is the single largest mu- treasurer Mary Kay Crain Cindi Crain paraging to a New York-based residents can actually enjoy the nicipal telecom project in the company and its 12,000 em- benefits of FiOS.This process country. Verizon is committed executive vp, operations William Morrow 22% 42% executive vp, director of strategic ployees who call the city home. is well underway, but getting to making the rollout of FiOS operations Chris Crain We’re extending those networks the necessary permissions from as successful as possible for the senior vp, group publisher David Klein that run under the streets into property owners can be a signif- city and its residents. vp/production, manufacturing David Kamis Anthony DiPonio 17% private properties and adding icant hurdle to delivering serv- —chris levendos chief information officer new customers every day. ice even when that property VP,national operations, Verizon founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) secretary Merrilee Crain (1942-2012) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

10 | Crain’s New York Business | June 16, 2014 20140616-NEWS--0011-NAT-CCI-CN_-- 6/12/2014 8:02 PM Page 1

STEVE HINDY City needs to brew city. There now are five small breweries in Brooklyn and another three in the planning stages. Queens has eight small brewing operations, the manufacturing jobs Bronx has two, Manhattan has one, and two are coming to Staten Island. Some may scoff at this brewing re- tate Comptroller Thomas DiNapoli released a report vival when compared with the 1890s, last month extolling Brooklyn as the “king of NYC when there were more than 40 brew- economic growth.”It applauded the borough’s 21% in- eries in Brooklyn alone. But many of those pre-Prohibition breweries were crease in businesses in the past 11 years,and noted that neighborhood operations, not unlike manufacturing jobs increased slightly in 2012 for the the new breed of urban craft beer first time in decades.This is a positive sign for New York City, maker.There were large brewing con- S cerns making millions of barrels of and at the same time a challenge to the de Blasio administra- beer in Brooklyn, like Schaefer and tion, which so far has put affordable housing at the center of its Rheingold, but more often the breweries measured their production in agenda and made little mention of the ing designation that usually permits the hundreds of barrels. need for more manufacturing jobs. residential as well as commercial and My own company, Brooklyn I think people need solid manu- industrial buildings—will under- Brewery, employs more than 100 in facturing jobs in order to have the mine manufacturing unless there are the borough. We also brew a signif- means for “affordable housing.” Af- limits that balance each use. What icant volume of beer in upstate New ter all, in New York City, even af- developer will settle for a low-rent York in a plant that employs 120. I fordable housing is not cheap. industrial tenant when he can devel- started Brooklyn Brewery 26 years At a Citizens Budget Commis- op housing or rent to a hotel? ago. In my first 15 years, I watched sion event last month, Deputy May- Rather than parsing the state- more than 20 small brewing opera- or Alicia Glen said the administra- ments of Ms. Glen and others, I’ll tions fail in metro New York. tion was committed to creating a suggest that Mr. DiNapoli’s report The new wave of craft breweries “live-work mixed-use and modern can be a good barometer of the is small, but, well, you have to start manufacturing environment” and administration’s economic-develop- somewhere.Think of these ventures “vibrant mixed-use districts.” ment policies. Will the manufactur- as canaries in a coal mine. Will the But Adam Friedman of Pratt In- ing upturn continue, or will it fade? de Blasio administration develop stitute’s Center for Community De- Another test is the fate of the the industrial space in the city for velopment said “mixed use”—a zon- fledgling craft-brewing sector in the them to thrive, or not?

$10.10 an hour, indexing the num- Minimum-wage hike: ber to inflation and allowing locali- ties to go as high as $13.13 an hour. No one knows how long the phase- in period would be,but we’re talking More pay, fewer jobs order of magnitude, not degree. Then consider this scenario: Gridlock in Washington, D.C., mall-business owners interviewed by Crain’s earlier means no increase in the federal min- this month saw only disaster if New York City in- imum wage;Nassau and Westchester creases the minimum wage to $13 or even $15 an counties stay with the state’s $10.10 an hour; and New Jersey sticks with hour (“Maximum worry on minimum-wage hike,’’ its current plan of $8.25 an hour in- June 9).Virtually all said they would cut jobs or move dexed to inflation. The gap between them outside the city.They echoed some economists who say the city,at $13 or so, and the suburbs S would be about 30%—and it would that higher minimum wages reduce employment by encourag- be larger across the Hudson. ing employers to hire fewer, better-skilled workers or invest in The most important point is the types of jobs affected. Except in the technology to reduce payroll costs. rarest of cases, a McDonald’s fran- Most economists disagree, how- chise can’t relocate to a less costly ju- ever, since most research shows no risdiction. The pro-increase Fiscal significant impact from raising the Policy Institute says that some 1.2 minimum wage. A recent study also million New York City workers found no movement of jobs across make less than $15 an hour, includ- state lines when nearby states adopt- ing 10% of the people employed in ed different standards, an important the high-paying finance sector. Its issue now that Gov.Andrew Cuomo point is that many people would has signed on to a plan to allow local benefit from such an increase. governments to do that in New York. However,many of those jobs,es- Here’s the kicker: Those studies pecially in warehousing,transporta- examined relatively modest increases tion and finance, can be moved— and relatively small differences across GREG DAVID and not only to nearby locations,but state lines. The Cuomo-Working also to the many Republican- Families Party jump in the minimum controlled states that show no signs wage would be substantial—almost It is self-evident that the incen- of raising their minimum wages. 65% from the current $8 an hour to tives for employers to do something The minimum wage has been a $13 (and more than 85% to reach besides merely going along with controversial issue in economics for Seattle’s new, ante-raising $15-an- higher wages depend on the amount years. What’s clear now is that pro- hour benchmark)—and could create of the increase. New York state is gressives’demands for sharp increas- significant differences across munic- currently raising its minimum wage es make less relevant much of the re- ipal borders. Most important, the from the federal level of $7.25 to $9 search on which their rhetoric is kinds of jobs affected are no longer an hour over three years, or a total based. Sensible policy would balance the stereotypical McDonald’s work- jump of 24%. The Cuomo-WFP the gains from hiking wages with the ers assembling Big Macs. plan envisions the state going to potential loss of job opportunities.

June 16, 2014 | Crain’s New York Business | 11 20140616-NEWS--0012-NAT-CCI-CN_-- 6/12/2014 6:42 PM Page 1

REAL ESTATE

That repositioning effort started just days after Grey Group’s depar- PERSON OF INTEREST Conversions ture—when cosmetics giant Avon signed on for 272,000 square feet.In FROM SMALL FIRM, BIG SAVINGS succeeding months,Sage and a team from Jones Lang LaSalle steadily A COMPANY THAT PROMISES New York deflate office glut leased the remaining open space. residential landlords significantly lower Mr. Lenchner said part of the electric bills is catching on. Less than two oncerns about an oversupply of office space downtown are ex- repositioning effort was spurred by months ago, ETS signed up one of its newest aggerated,according to a new report.Despite all the new square the completion of a large capital im- clients, the 418-unit Riverbank West footage hitting the market in the towers at the World Trade Cen- provement that included restoring apartment complex in midtown. There, the ter site,the Alliance for Downtown New York notes that a huge the lobby, upgrading elevator cabs New Jersey-based outfit will install hundreds amount of older space continues to be taken off the market and and building out on spec some of the of sensors that can keep careful, minute-by- Cconverted to residential and hotel use. office space in the building, which is minute, room-by-room tabs on the building’s In fact, the downtown booster group found that 10 million square feet of co-owned with the Travelers Cos. power usage, which could allow landlord office space has been converted to residential or hotel use since 2004, and an L.Craig Lemle of Savills Studley Cornerstone Real Estate Advisors to slash additional 5.1 million square feet is either in the process or in the planning represented SEI in the transaction. bills by as much as 30% by both changing its stages of being similarly repurposed. “We are converting office space at a —joe anuta habits and buying electricity when it’s cheapest. much faster clip than we realize,” said Downtown Alliance President Jessi- So far, said ETS Chief Executive Jeff Hendler (pictured), that promise ca Lappin. “It underlines that we do not have a glut of office space.” Chinese real estate has been enough to lure the landlords of 3 million square feet in the area. In the report released last week, the Downtown Alliance also highlights no That includes 500,000 square feet in buildings belonging to Manhattan’s less than nine landmark properties that are being transformed into residential, firm jumps to NYC Milstein family, part owner of ETS. retail, restaurant and hotel space. Ms. Lappin said that the architecturally sig- “When a lot of building systems were built more than a decade ago,” he nificant properties, which include the Corbin Building and 1 Wall St., add to Another Chinese real estate invest- downtown’s culture and aesthetic, and enhance a growing residential commu- ment company is coming to the city, explained, “there wasn’t Wi-Fi, there wasn’t an iPhone—you didn’t have nity there that has helped its commercial component become more popular. the latest in a wave of firms from the these types of sensors and connectivity in real time.” “The charm and uniqueness of downtown is appealing to tenants,”Ms.Lap- Far East who have turned their at- Careful monitoring of all building systems has long been used in the pin said.“These projects create the 24/7 community we have been striving for.” tention to investments here. commercial sector to cut utilities costs, noted Russell Unger, executive —daniel geiger Shangcheng USA Corp.,the U.S. director of the Urban Green Council. Recently, the developers of Hudson arm of the China-based firm, signed Yards took it a step further, announcing a similar monitoring system they a 4,500-square-foot lease for a por- dubbed a “quantified community.” But that level of data has not been deal for 7,900 feet on the 26th floor. tion of the 39th floor at the tony collected in the multifamily realm, according to Mr. Unger, and it could be ‘No Vacancy’ sign The asking rent on the new space Carnegie Hall Tower at 152 W. 57th St. costing landlords dearly. “If you’re not monitoring what is going on, you goes up on Third was $75 per square foot. The deal The space,where rents rise to an ethe- can’t find out what you need to address,” he said. —JOE ANUTA capped off a multiyear repositioning real $115 per square foot,offers views Four years after advertising firm effort at the 38-story office tower. of nearby Central Park. Shangcheng stake in the huge Atlantic Yards de- mark Grubb Knight Frank, who Grey Group decamped from 777 “We believed from the beginning committed to the space for five years. velopment in Brooklyn. represents Carnegie Hall Tower’s Third Ave., leaving 400,000 square that the new 777 Third Ave. would Several Chinese real estate com- Fosun, another Chinese real es- landlord, TF Cornerstone, helped feet vacant, the William Kaufman be able to attract a diverse panies have turned their tate outfit, bought the downtown arrange the deal. Shangcheng was Organization has finally hung out roster of new triple-A sights to New York in office tower 1 Chase Manhattan represented by Clyde Reetz, a bro- the “No Vacancy” sign. tenants,” said Michael recent months and es- Plaza and is expected to set up oper- ker with CBRE Group Inc. That came when SEI Invest- Lenchner of Sage Realty, tablished offices here. ations here to manage that asset. Shangcheng will move its U.S. ments Co. inked a lease for 10,500 the leasing and manage- Last year, Shanghai- Both those companies now have headquarters to its new perch from square feet on a portion of the 20th ment division of William based landlord Green- New York operations. its previous home in Los Angeles. floor and renewed its seven-year Kaufman. land Holdings bought a Matt Leon, a broker with New- —daniel geiger

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12 | Crain’s New York Business | June 16, 2014 20140616-NEWS--0013,0014-NAT-CCI-CN_-- 6/12/2014 5:20 PM Page 1

FORTUNATE 100 INSIDE Where the dough is The 10 highest-paying boards in New York PAGE 14 The List New York area’s highest-paid REPORT chief executives PAGE 15 steve munday Directors flex their muscles

Point. But combat over issues, including the auction house’s Century Fox board, was paid $4.8 million. When Mr. Vagelos’ As their pay rises—and their agendas bids to enter the Asian and contemporary-art markets, seems pay is excluded, the areawide average drops to $488,563. win converts—more board members likely to persist, even if it plays out behind closed doors. “Directors have become more qualified and more in- Mr. Loeb’s appointment highlights a trend at formed,”said John Wood,vice chairman at Chicago- are challenging the all-powerful CEO many public companies: the rise of directors. Along based Heidrick & Struggles and a member of the with achieving a higher profile in the media, they are $631K executive-search firm’s chief executives and board of getting paid more and taking a more active role in AVERAGE PAY directors practice. “That results in a dialogue that BY ALEC FOEGE for directors on company management. best-paying challenges the notion of the imperial CEO.” The average pay for the 122 directors serving on boards Directors’ influence has been building for a A few weeks ago,after a dramatic bout of public wrangling with the 10 highest-paid boards in New York City was Source: Equilar decade. Many have gained power and pay in ex- Sotheby’s, activist investor Dan Loeb won a seat on the board $630,608 in 2013, according to data prepared for change for political influence or deep management of the storied auction house for himself, as well as two seats for Crain’s by Equilar.The highest-paid board member in the city, expertise in a particular area. allies. Mr. Loeb had demanded the ouster of CEO Bill P.Roy Vagelos,the former CEO of Merck who sits on the board “If you go back to Enron,Tyco and WorldCom, [those sit- Ruprecht,blasting his generous pay package.Now the two men of Regeneron Pharmaceuticals, was paid $17.8 million, mostly uations] pointed to accountability,” said Peter Gleason, man- are sitting at the same board table. in stock options and almost three and a half times more than the aging director and CFO at the Washington, D.C.-based Na- In early May, Sotheby’s publicly made amends with Mr. next highest-paid board member, Joel Klein. Mr. Klein, a for- tional Association of Corporate Directors, or NACD. The Loeb, who runs a Manhattan-based hedge fund called Third mer New York City schools chancellor and member of the 21st See DIRECTORS on Page 14

June 16, 2014 | Crain’s New York Business | 13 20140616-NEWS--0013,0014-NAT-CCI-CN_-- 6/12/2014 5:20 PM Page 2

REPORT FORTUNATE 100

rank among the highest-paid in New York. Typical top-CEO pay? $11M+ Henry R. Kravis, CEO of KKR & Co., a global private-equity firm, made more than $44 million last Execs see comp rise CEOs everywhere are getting a he received in 2012. In 2011, his year, finishing third on the list. bigger share of the economic pie. compensation totaled almost $61.7 CEO pay is a continually con- 8.9% as stock awards But while their compensation rises, million. tentious issue, though most execu- soar; Gamco head workers’ pay is staying almost flat. Mr.Gabelli,who founded Gam- tives and boards seem immune to In New York state, average workers’ co in 1977, received the majority of the criticism. tops list at $80M pay increased to $60,600 last year his pay for acting as portfolio man- “The compensation continues to from $60,400 in 2012. rise, and it is higher than [that of ] the general worker population,”said BY VALENTINA CORDERO Long-term incentive Finance, media Eleanor Bloxham, founder and In New York, more compensa- CEO of the Value Alliance,a corpo- The median pay for the best-paid tion is being given in options, typi- chief execs rate-governance advocacy group. 100 CEOs in the New York area cally seen as an incentive to get man- “Even when the economy was in the grew 8.9% between 2012 and 2013, agers to think longer-term. The scale salary

doldrums and even more people bloomberg news hitting $11.5 million in 2013, up median stock award for the CEOs ladder in were out of work than they are to- VIRGINIA ROMETTY of IBM declined her from $10.6 million the year before last year was $3.7 million (down day,CEOs were still earning a hefty 2013 bonus. (see list starting on Page 15). from almost $4.2 million in 2012), New York paycheck.” The latest Crain’s/Equilar CEO and the median option award was compensation study shows how more than $3.6 million (up from al- Scarcity of female CEOs Men were also more likely to re- CEOs, whose compensation typi- most $2.5 million in 2012). There are only seven female ceive option awards, which have a cally includes hefty stock and option The highest-paid CEO on the CEOs on the highest-paid list, higher potential value in the long awards,cashed in on the rising stock latest Crain’s/Equilar list was Mario earning a median of almost $8.9 run. Stock awards for men rose market. Equilar is an executive- J. Gabelli, founder and CEO of ager for the company’s funds and ac- million. In part, that may reflect 15.7%, while for women they in- compensation data firm based in Gamco Investors Inc., a fund com- counts. women’s slow ascent to the top ranks creased by 2.4%. Redwood City, Calif. pany that manages more than $43 Leslie Moonves, CEO of CBS of corporate America. But it may The top-ranking woman,at No. Nationwide, the median in cash, billion in assets. In 2013, Mr. Corp., came in second on the list also have to do with how their pay is 33, was Virginia Rometty, CEO of stock and option awards for the Gabelli’s total compensation was with more than $65 million. Mr. structured. In aggregate, the male IBM. She made almost $14 mil- highest-paid CEOs was $10 mil- more than $80 million,according to Moonves was top-ranked in 2012 executives on the list received more lion, down from the No. 23 posi- lion in 2013,up from $9.7 million in the list. (with more than $60 million) and in than $100 million in bonuses, while tion,with more than $15 million,in 2012, according to a pay study by His earnings represented a 2011 (more than $68 million). Fi- women received none (see chart on 2012. Ms. Rometty declined her Equilar and the Associated Press. 23.3% increase over the $69 million nance and media CEOs typically Page 15). 2013 bonus.

in line with those of previous years. days a week.” makes a big difference to the value of Most directors of public compa- Clarence Otis Jr., the embattled a company—or even basic issues of Directors flex muscles nies are already financially successful chairman and CEO of Darden governance—is an open question. enough that, in theory, the mid-six- Restaurants, owner of Red Lobster When Credit Suisse,which has a Continued from Page 13 doing intermittent research.Finance figure salaries they earn should not and Olive Garden, has come under large investment bank based in Sarbanes-Oxley Act of 2002 “put a and biotech companies in New York be prime motivators. fire for his attendance at 76 board Manhattan, recently faced criminal big focus on the board overseeing fi- have especially rich packages. In some cases, hedge funds have meetings last year for companies charges brought by the U.S.Depart- nancial statements and the audit Directors at Regeneron Phar- attempted to insert dissident board other than his own. Meanwhile, Mr. ment of Justice that it assisted some committee,” he said. And the Dodd- maceuticals, headquartered in Tar- members and have offered those di- Otis’ plan to sell Red Lobster to a of its customers in evading Ameri- Frank bill,signed by President Barack rytown, N.Y., earn in excess of $1.4 rectors bonuses in addition to their private-equity firm for $2.1 billion can taxes for decades, this concern Obama in 2010, shone a spotlight on million each in cash fees and stock compensation from the companies has enraged activist investors, who was brought to the fore. Although compensation committees. options for their part-time service. they serve. For example, Elliott feel it is undervalued. Not surpris- the bank has pleaded guilty, the Mr. Gleason said it’s the more That board is the highest paid in the Management successfully placed ingly, those investors now plan to board apparently never considered subtle outsiders who often have the New York area. three of five candidates it recom- push for seats on the Darden board removing Credit Suisse’s CEO, most meaningful influence on cor- At Summit, N.J.-based biotech mended on Hess’ board in May to prevent a similar sale in the future. Brady Dougan, from his post. porate boards.As an example,Ralph company Celgene, a director’s aver- 2013. Credit Suisse’s directors,who in- Whitworth of San Diego-based age compensation comes to more Most directors typically must at- ‘Personal judgment’ clude Sebastian Thrun,CEO of on- Relational Investors quietly helped than $800,000 in cash, stock and tend seven meetings per year, ac- Gary Lutin, chairman of the line university Udacity, and Iris rescue Atlanta-based Home Depot options, and at New York financial cording to the NACD. Serving on Shareholder Forum, a nonpartisan, Bohnet, a professor of public policy in 2007 “by bringing analysis to the giants Goldman Sachs and Citi- various board committees, such as independent creator of programs at Harvard’s Kennedy School, are table that the directors hadn’t had group, director pay can top audit, governance and strategic designed to inform corporate share- paid from $250,000 to $1.4 million before, and it helped them move $500,000. planning, requires additional hours holders, cringes when he hears tales annually. forward,” said Mr. Gleason. Median director pay at publicly to conduct research, digest analyses of directors becoming more deeply Heidrick & Struggles’Mr.Wood traded companies rose between 4% and take votes. There also are in- involved in company strategy. advised CEOs to be open to the new Bump in pay and 6% in 2013, with an 11% increased professional risks accompa- “Directors have started getting sta- power players.“The attitude should The rise of directors’ power has crease in median director compensa- nying the role of director. tistical,” he said. “What they really be, ‘If something’s not right, tell me been accompanied by a jump in their tion for companies with annual rev- Although the number of in- need is personal judgment and re- about it,’ ” he said. “That’s actually pay. Many directors get paid hun- enue between $500 million and $1 person meetings is fairly small, Mr. sponsibility.” good for shareholders, and that’s dreds of thousands of dollars for at- billion, according to the NACD. Gleason pointed out that “you have Whether a higher-paid,more in- more important than whether it’s tending a handful of meetings and The most recent annual increases are to be on call 24 hours a day, seven formed and more powerful board good for CEOs.”

SITTING PRETTY GOLDMAN SACHS CITIGROUP Total board compensation: $4.7 million Total board compensation: $3.9 million REGENERON Average board member’s pay package: $424,000 (11% cash, 89% stock) Average board member’s pay package: $282,000 (52% cash, 48% Total board compensation: $30.6 million Highest-paid member: Stephen Friedman, $773,000 stock) Average board member’s pay package: $3.1 million (2% cash; 98% Highest-paid member: Robert Joss, $675,000 options) HESS Highest-paid member: P. Roy Vagelos, $17.8 million Total board compensation: $4.4 million AMERICAN EXPRESS Average board member’s pay package: $219,000 (40% cash, 60% stock) Total board compensation: $3.9 million 21ST CENTURY FOX Highest-paid member: Mark Williams, $304,000 Average board member’s pay package: $278,000 (39% cash, 61% Total board compensation: $10.8 million stock) Average board member’s pay package: $831,000 (10% cash, 90% STEVE MADDEN Highest-paid member: Robert Walter, $347,000 stock) Total board compensation: $4.2 million Highest-paid member: Joel Klein, $4.8 million Average board member’s pay package: $833,000 (9% cash, 91% stock) PFIZER Highest-paid member: John Madden, $3.4 million Total board compensation: $3.8 million CELGENE Average board member’s pay package: $272,000 (52% cash, 48% Total board compensation: $6.7 million MORGAN STANLEY stock) Average board member’s pay package: $833,000 (12% cash, 44% Total board compensation: $4.0 million Highest-paid member: George Lorch, $326,000 stock, 44% options) Average board member’s pay package: $310,000 (27% cash, 73% stock) Highest-paid member: Michael Casey, $875,000 Highest-paid member: Donald Nicolaisen, $370,000 Source: Equilar

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NEXT WEEK: THE New York Area’s Fortunate 100 200 Most Connected New Yorkers LIST Chief executives ranked by 2013 total compensation TRENDS bloomberg news MARIO J. GABELLI (No. 1), Gamco Investors Inc., $85,049,800 LESLIE MOONVES (No. 2), CBS Corp., $65,589,245 HENRY KRAVIS (No. 3), KKR & Co., $44,205,435

RISING RICHES BIGGEST WINNERS Growth in NYC executive pay has outpaced average annual wages of all occupations in the NYC area. Five of the 2013 Fortunate 100 saw their pay more than double from 2012 to 2013; their companies did well, too. Mean CEO total pay NYC area annual wages The average increase for the Fortunate 100 was 8.9% for the same period. (See story, Page 14.) % increase Fiscal year stock $15,000,000 $62,000 performance $14,652,723 $14,581,799 JAMES MEYER, Sirius XM +596.2% +15.6% $13,199,714 $12,709,273 $11,868,010 IRWIN SIMON, Hain Celestial Group +185.5% +16.7% 7,500,000 61,000 STEPHEN SCHWARZMAN, Blackstone Group $60,610 +161.3% +94.6% FABRIZIO FREDA, Estée Lauder Cos.

e +138.3% g +20.2% a im 0 60,000 JOHN THAIN, CIT Group ap 2009 2010 2011 2012 2013 +101.1% James Meyer +33.5% Note: All figures adjusted to 2013 dollars. Sources: Equilar, U.S. Bureau of Labor Statistics Sources: Equilar and Yahoo Finance

DIFFERENT STROKES GENDER BENDER Together, the 93 men on the list received more than $100M in bonuses. The seven women received more of their total combined compensation in salary and stock awards.

Salary 12.8% 8.4% Bonus 0.0% 7.2% 83 75 28.3% NEIP payouts 18.1% cents cents Option awards 2.8% 14.1% Stock awards Other 53.6% 36.7%

15.7% AVERAGE AMOUNT 2.4% AVERAGE AMOUNT U.S. women make for every women on the Fortunate 100 Female total Male total dollar earned by comparably employed men list make for every dollar earned by men on the list

Source: Equilar Sources: Equilar, the Urban Institute

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THE LIST New York Area’s Fortunate 100

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" # ! $ % % & $ ( ) 9 &WX`SfTbLg 9`PRT AThPX` BhcfTg 2bR 95&( ,3/-3),3/-3) ## ! " !! ' $ &chs &8CH ,3/8-3)0,3/8-3)0 # # "! # u ( ) + FTXVWh FPhRWTfg 2bhTfbPhXcbP` FCF ,3/80)8,3/80)8 !#" ! " # ! ! ')') = = $85 2bR $85 ,3/0-)-,3/0-)- ! !! ## !! $ 6) ! F9 &PfTs ' &c F9& ,3/01)8,3/01)8 ! ## ! "## ! ')') ! 1Tbfs BRWTXb 2bR 1B2& ,3/),3/) " !! # ! ' ' ()() 5%5% CXUUPbs ' &c C2) ,3/08),3/08) ##! ## ""# " ! > :) " BchWTQsLg %2' ,3/0),3/0) ! # " "! ""! 2) (pTfRcfT 9PfhbTfg 2bR (EA ,./1--)3,./1--)3 ! ! =)=) ; # $ihcaPhXR 'PhP 9fcRTggXbV 2bR $'9 ,./1.-),./1.-) " ! # "! ( ) 5cTqg &cfd 5 ,./1.)-,./1.)- #! " "!" "" #! % % )) 9 9 " BhTpTb 6PSSTb B188 ,./--1)8,./--1)8 !! " ## #"! > () : $h`Pg $Xf Fcf`SqXST 1c`SXbVg 2bR $$FF ,./-3.)3,./-3.)3 "" " " " # !! > 2) '+'+ 4PhT BdPST 4$C( ,./-.)-,./-.)- " " !## # ! ! ' 6) * ! &$ CTRWbc`cVXTg &$ ,./-0),./-0) " # " ! 4 4 =)=) : ; 6B&2 2bR 6B&2 ,./3-1),./3-1) # # #! ! ! ( ( ()() 7 67 6 BXVbPhifT %PbY B%7H ,./3),./3) ! !# ! !"! ! 7 7 2)2) ! 2CC &cfd 2CC ,./0-8),./0-8) "# # !" # # " "! )) 4 ()4 () 1iSgcb &Xhs %PbRcfd 2bR 1&%4 ,./01)-,./01)- " # "! ((()() 4 CcqTfg FPhgcb ' &c CF ,./.),./.) #" ! # " !! ( 2) + # FXgScaCfTT 2bpTghaTbhg F(C) ,0/13.)8,0/13.)8 ! "" # "#! &cadTbgPhXcb SPhP dfcpXSTS Qs (eiX`Pf Pb TrTRihXpT RcadTbgPhXcb SPhP UXfa ATSqccS &Xhs &P`XU "!! # qqqTeiX`PfRca &cadPbs SPhP dfcpXSTS Qs B'9 &PdXhP` 2@ " qqqgdRPdXhP`XeRca $SSXhXcbP` fTgTPfRW Qs BitPbbT 9PbPfP PbS 7XRWc`Pg FT``g 7TXhWTf bcf (eiX`Pf ViPfPbhTTg hWT hfihW cf PRRifPRs cU Pbs dPfh cU hWT (eiX`Pf aPhTfXP`g 7Tq HcfY PfTP XbRìSTg 7Tq HcfY &Xhs PbS 7PggPi BiUUc`Y PbS FTghRWTghTf RcibhXTg Xb 7Tq HcfY PbS %TfVTb (ggTr 1iSgcb PbS DbXcb RcibhXTg Xb 7Tq 3TfgTs CWXg fPbYXbV Xg QPgTS cb `Xgh cU hWT `PfVTgh diQ`XR`s WT`S RcadPbXTg Xb hWT 7Tq HcfY PfTP diQ`XgWTS cb 6Ps PbS XbRìSTg &(8g qWc qTfT qXhW hWcgT RcadPbXTg Ph hWT TbS cU hWTXf UXgRP` sTPfg (rTRihXpTg aPs gWPfT hWT &(8 hXh`T PbScf WPpT PSSXhXcbP` hXh`Tg (rTRihXpTgL PVTg PfT STfXpTS Ufca QXcVfPdWXRP` XbUcfaPhXcb SXgR`cgTS Xb hWT RcadPbs dfcrs ghPhTaTbhg PbS aPs bch fTU`TRh fTRTbh QXfhWSPsg %PgT gP`PfXTg PfT hPYTb Pg SXgR`cgTS Ufca hWT BiaaPfs &cadTbgPhXcb CPQ`T PbS PfT bch PbbiP`XtTS Ucf TrTRihXpTg Tad`csTS Ucf `Tgg hWPb P Ui`` UXgRP` sTPf $`` UXbPbRXP` SPhP PfT STfXpTS Ufca hWT acgh fTRTbh 4g PpPX`PQ`T Pg cU $dfX` CWT acgh fTRTbh SPhP Ucf RcadPbXTg qXhW UXgRP` sTPfg TbSXbV Xb 6PfRW hWfciVW 'TRTaQTf PfT Ucf hWT sTPf TbSTS Xb PbS hWT acgh fTRTbh SPhP Ucf RcadPbXTg qXhW UXgRP` sTPfg TbSXbV Xb 3PbiPfs PbS )TQfiPfs PfT Ucf hWT sTPf TbSTS Xb &cadTbgPhXcb SPhP PfT STfXpTS Ufca RcadPbs UX`XbVg PpPX`PQ`T Ufca hWT B(& Pg cU 6Ps &cadTbgPhXcb PbS UXbPbRXP` UXVifTg WPpT QTTb fcibSTS hc cbT STRXaP` d`PRT fTdfTgTbhg hWT gia cU QPgT gP`Pfs Qcbig bcbTeiXhs XbRTbhXpT d`Pbg VfPbh SPhT UPXf pPìT cU cdhXcb PbS ghcRY PqPfSg PbS chWTf RcadTbgPhXcb BP`Pfs aPs QT dPXS Ucf P Ui`` cf dPfhXP` sTPf XU hWT TrTRihXpT RcaaTbRTS Tad`csaTbh SifXbV hWT sTPf " # $ fTdfTgTbhg RPgW PqPfSg TPfbTS Xb RcbbTRhXcb qXhW gWcfh PbS `cbVhTfa XbRTbhXpT d`Pb PqPfSg VXpTb Xb hWT dPgh sTPf % % fTdfTgTbh hWT PVVfTVPhT VfPbh SPhT UPXf pPìT cU gTfpXRT PbS dTfUcfaPbRTQPgTS cdhXcb PqPfSg VXpTb Xb hWT dPgh sTPf % fTdfTgTbh hWT PVVfTVPhT VfPbh SPhT UPXf pPìT cU gTfpXRT PbS dTfUcfaPbRTQPgTS ghcRY PqPfSg VXpTb Xb hWT dPgh sTPf fTdfTgTbhg hWT pPìT cU bcbdTbgXcb QTbTUXhg PbS dTfeiXgXhTg VXpTb Xb hWT dPgh sTPf & & fTdfTgTbhg hWT RWPbVT Xb ghcRY dfXRT dìg Pbs SXpXSTbSg dPXS cpTf hWT acgh fTRTbh UXgRP` sTPf 6f %fXhh `TUh hWT &(8 dcgXhXcb cb 'TR 6f 2StXY QTRPaT &(8 cb 3Pb 6f 0`PgTf QTRPaT &(8 cb 3Pb 7ch RP`Ri`PhTS QTRPigT hWT RcadPbs WPgbLh QTTb diQ`XR`s hfPSTS P Ui`` UXgRP` sTPf 6f )fPbYUcfh `TUh hWT &(8 dcgXhXcb cb 3Pb 6f &P`Pbhtcdci`cg QTRPaT &(8 cb 6Ps " !6f APhbTf `TUh hWT &(8 dcgXhXcb cb )TQ " "6f &c`TaPb QTRPaT &(8 cb 3i`s #6f 9TfXQTfT QTRPaT &(8 cb 6PfRW 6f BhTdWTbgcb QTRPaT &(8 cb $dfX` 6f AchW fTPggiaTS hWT &(8 dcgXhXcb cb $dfX` 6f 5sbRW `TUh hWT &(8 dcgXhXcb cb 3i`s " 6f &WPaQTfg QTRPaT &(8 cb 3i`s 6f 6R&caQ `TUh hWT &(8 dcgXhXcb cb )TQ 6f 0fTVcXfT QTRPaT &(8 cb 3Pb !

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REPORT FORTUNATE 100

sight,” he said. AT THE TOP Dose of fortune for executives Critics of the company say it’s not quite that simple. Regeneron’s highest-paid The eye drug’s $1,850 price tag employees in 2013 figures in an ongoing debate about Leonard Schleifer Continued from Page 1 reason that the huge he recalled. The the high cost of pharmaceuticals. A Chief executive Medicare, has fueled Regeneron’s pay packages stand company now has a $50 shot of Avastin, a cancer drug $36.3 million growth and a meteoric rise in its out,said David Larc- factory in Rensse- made by Roche’s Genentech divi- George Yancopoulos stock price. The stock hit $309 on ker, an accounting laer, N.Y., and em- sion, is also effective when used off- Chief scientific officer June 10, up from $248 a year earlier professor at the Stan- ploys about 2,400 label to treat the eye ailment. $31.0 million and $27 in 2010, the year before ford Graduate people in the U.S. Eylea came on the market. School of Business. Though many Risks involved Neil Stahl Dr. Leonard Schleifer, a Queens Paying an executive products did not pan According to a December 2013 Senior VP, research and native who started Regeneron out of nearly 2% of a com- out, Regeneron had Washington Post analysis of development services $14.4 million an apartment in 1988, earned $36.3 pany’s revenue is units first winner in Medicare data for 2012, more than million in 2013, placing him sixth usual. “It’s certainly a Arcalyst, an anti- half of U.S. physicians prescribed Robert Landry on Crain’s annual Fortunate 100 list big number,” he said BIG BUCKS inflammatory used the cheaper drug. But it comes with Chief financial officer of the highest-paid executives. His of Dr. Schleifer’s for a rare genetic dis- safety concerns.Avastin is packaged $12.6 million Dr. Leonard Schleifer’s pay pay, including cash, bonus, stock compensation. ease that makes peo- in quantities meant to treat cancer, Robert Terifay and options, has more than tripled Still, he noted, In millions ple feel cold all the and has to be reformulated for use in Senior VP, commercial since 2011, though much of the rise each situation has to $36.3 time. Then came the eye. There have been at least $7.7 million has come from the increase in the be evaluated on its $30.0 Eylea. Its success nine reported cases where patients Murray Goldberg company’s stock. own—and Regen- and the high prices it went blind because the drug got Senior VP, administration “We are treated like an overnight eron’s case seems is able to command contaminated when being prepared $2.7 million success, but it’s been 25 years of unique. Its CEO and are credited with in a compounding pharmacy. overnights,”Dr.Schleifer said.“Sci- chief scientific offi- spurring the boom in Avastin is molecularly similar to Company’s highest-paid board members ence is a hard business, and science cer are the entrepre- $10.6 biotech initial public Lucentis, a Genentech drug that to make drugs is an even harder neurs who founded offerings, as in- competes with Eylea. Lucentis P. Roy Vagelos business. We started from scratch.” the company—and vestors have noticed came on the market in 2006 and Board chairman

their work can gen- 2011 2012 2013 ap image how profitable a costs $1,950 per monthly dose, and $17.8 million Among the highest uinely be said to have drug in high demand is also effective. Patients getting Charles Baker, Michael Brown, Meanwhile, Regeneron board changed people’s lives. could be. Eylea, however, generally need the Alfred Gilman, Joseph Goldstein, chairman Dr.P.Roy Vagelos,former The company was started near Whether or not Eylea should be injections half as often, one reason Christine Poon, Arthur Ryan, Eric chief executive of Merck, is the top- what was then Cornell Medical Col- called a miracle drug—it has a com- sales have taken off. Shooter, George Sing, Marc Tessier- earning board member among the lege,where Dr.Schleifer,then on the petitor that’s arguably equally ef- Fortunately for Regeneron,price Lavigne top 10 highest-paid boards in New school’s faculty, teamed up with Dr. fective—its sales have been miracu- is not the main concern for most $1.4 million York City.He earned $17.8 million, Yancopoulos, a superstar researcher lous for Regeneron. Eylea brought doctors. “I’m aware of the issues in Source: Equilar mostly in options, from Regeneron. at Columbia University. The two in $1.4 billion in 2013, a big chunk trying to lower overall health costs, Dr. George Yancopoulos, the com- came up with a novel biotech plat- of the company’s $2.1 billion but I factor in the best interest of the lion). Other Regeneron executives pany’s chief scientific officer,had to- form for designing drug molecules. revenue. patient,” said Dr. Bailey Freund, a are similarly paid. Salary and bonus tal compensation of $31 million in “We were soon getting interna- Dr. Schleifer is proud of Eylea. retina specialist at Vitreous Retina packages averaged $132,000 last 2013. tional visitors,a lot of prospects who “You have a drug that can take peo- Macular Consultants of New York year, a spokesman said. The median pay of all the Fortu- looked askance at where we were ple who can’t read or drive and can’t in Manhattan. The company has become a stal- nate 100 rose 8.9% between 2012 working—we liked calling the see their grandchildren’s activities, “My personal observation is that wart of the New York area corporate and 2013. But that’s not the only apartment our world headquarters,” and you can change that, restore Eylea seems to be more potent than scene, funding educational pro- other drugs,” said Dr. Freund. grams and working to bring new Mr. Napoli says he has no doubt biotech ventures to the city. that Eylea is a wonder drug. “I can “We always get treated exceed- drive again, and I don’t need tele- ingly well by people who would scopic lenses to do it,” he said. like us to relocate,” said Dr. As for the price, his Medicare is Schleifer. “But we’re native New I made comprehensive supplemented with a Medi-gap Yorkers.” energy upgrades. policy that picks up the $400 de- Dr. Schleifer and his wife, Har- ductible on each injection, so the riet,a retired lawyer who specialized Now, my multifamily only pain he feels is the shot itself. in laws protecting the rights of chil- “And that’s not as bad as you might dren with special needs, established building is in demand. think,” he said. the Schleifer Family Foundation, When tenants are happy, word gets around. Another Regeneron drug, which has donated to Jewish causes colon-cancer treatment Zaltrap, and nonprofits dedicated to im- So I’m always looking for ways to make my was so costly that, in 2012, Memor- proving life for people with devel- multifamily building more marketable. With ial Sloan Kettering Cancer Center opmental disabilities. comprehensive energy upgrades through went public with its refusal to use “We have a disabled son, and my the New York State Energy Research the drug. Zaltrap is marketed by wife is a child of Holocaust sur- and Development Authority’s (NYSERDA) French pharma giant Sanofi, which vivors,” he said. Multifamily Energy Performance Portfolio, set its price—and after the cancer He is also a co-chair of the I can offer lower energy bills plus a more center’s protest, cut the $11,000 Mid-Hudson Regional Economic monthly price in half. But MSK Development Council, part of a comfortable, more environmentally hasn’t changed its policy, a spokes- Cuomo administration initiative to responsible place to live year-round. And woman said. direct funding to projects that with an average annual return on investment promise to generate jobs through- of 22%—I feel pretty comfortable, too. It’s all in the stock out the state. For now, Regeneron’s profits and Before it had a blockbuster drug, Learn more and get started. stock price depend on its ability to Regeneron established a mobile Visit nyserda.ny.gov/Crain’s-better-living charge high prices for its drugs. teaching microbiology lab called the Drugs are protected by patent for 20 Bio Bus, which regularly visits area years, though competition some- schools, letting students try fun times brings down the prices sooner. things like extracting DNA from Most of Dr. Schleifer’s pay could strawberries, a Regeneron spokes- evaporate overnight, if the compa- man said. ny’s stock price falls. Meanwhile, Regeneron has sev- “Well over 90% of my compen- eral new drugs in the pipeline, for sation is in stock,” he said. “It only which there could be enormous has value if it goes up, so my com- markets, including candidates for pensation is very much tied to the treating high cholesterol, rheuma- company’s performance.” toid arthritis and eczema. Only a small part of Dr. “I’m pretty excited about what MEPP-OWN-go-ad-3-v2 Schleifer’s pay last year was salary we’ve got coming,” Dr. Schleifer ($1 million) and bonus ($2.1 mil- said. Ⅲ

18 | Crain’s New York Business | June 16, 2014 20140616-NEWS--0019-NAT-CCI-CN_-- 6/12/2014 8:03 PM Page 1

IN THE BOROUGHS BROOKLYN FILL ’EM UP: A revival of the vast FROM Industry City Jobs rise in Sunset complex AROUND could bring big changes THE CITY Continued from Page 3 But Sunset Park has also cycled to the area. $250 million refurbishment that through waves of Polish, Irish and BROOKLYN aims to turn the once-derelict com- Italian immigrants, many of whom plex with a total area more than dou- walked down to blue-collar jobs on Plans to build in ble that of the Empire State Build- the once-thriving waterfront. Today, ing into a modern manufacturing the neighborhood’s two largest ethnic garden sow fear space. Plans also call for a trendy communities cluster along a pair of shopping destination drawing on commercial corridors: a Hispanic When they aren’t planting flowers or the success of one of the owners’ear- population around Fourth Avenue; cleaning up tree beds, volunteers of lier projects, Manhattan’s Chelsea and more recently,a growing Chinese the Roger That Garden urban green-

Market. community along Eighth Avenue. buck ennis space at the intersection of Rogers While the 15,000 jobs that a re- Avenue and Park Place in Crown Beyond the divide vived Industry City hopes to bring to feet, in the hopes of expanding and 18,000 windows, upgrading 144 el- Heights are busy trying to save it If all goes according to plan, In- Sunset Park’s doorstep would seem one day possibly manufacturing evators and bringing the remaining from becoming a construction site. dustry City’s rebirth will have a last- to bode well for the area, community cloth bags there. In doing so, the 30% of unleased space back into use. “TYC Realty bought the lot in ing impact on the far side of the activists like Elizabeth Yeampierre, company would join a host of man- But their plans to create public December,” said volunteer Sarah Gowanus Expressway, which sepa- executive director of nonprofit Unit- ufacturers, including 13 garment courtyards with ground-floor retail Wesseler.“In January, the new owner rates the gritty waterfront from ed Puerto Rican firms. space, including many shops run by said he wants to clear the property.” Sunset Park’s upland residential Organization of Even the tech companies that Industry City’s own tenants, could Since then, the garden has be- section. But community leaders are $42,116 Sunset Park, or Industry City hopes to attract would do the most to boost the visibility of come something of a cause célèbre, SUNSET PARK wondering whether the complex median income UPROSE, employ a wide range of people.A re- the complex and the neighborhood. the focus of demonstrations, letter- will enhance the neighborhood’s wonder how cent study released by consulting “These smaller and cooler-type writing campaigns—and, crucially, 150-year legacy as a working-class many of those firm HR&A Advisors noted that spaces are going to have a very pos- fundraisers. stronghold and first stop for new 15,000 positions will 44% of tech jobs in the city did not itive impact,” said Timothy King, Volunteers have partnered with immigrants, or transform it JOBS GOAL for actually be filled even require a bachelor’s degree. managing partner at CPEX Real the nonprofit Brooklyn Queens through a wave of gentrification. Industry City by the mostly And to maximize the complex’s Estate, who added that a ripple ef- Land Trust, which manages 32 “Various populations have working-class connection with its neighborhood, fect could help spur replacement of community gardens in the city, to moved in, and other populations residents of the area covered by its management is setting up a local some of the seedier retail storefronts purchase the property from TYC, have moved out over time,” said Community Board 7, who have a hiring initiative that has already along Third and Fourth avenues. which didn’t return calls for com- Jeremy Laufer, district manager of median income of $42,116—about placed 30 Sunset Park residents into Such a shift may already have be- ment. To date, however, they have Brooklyn’s Community Board 7. $10,000 below the citywide level. jobs at what management hopes will gun. A case in point is Louis Her- raised just enough money,via a ben- He pointed to such local land- “We don’t get excited about be a broad range of tenants. nandez, who recently opened a hip- efit party and fundraising website marks as the Finnish Co-ops on small, boutique industries that hire looking eatery on Fourth Avenue Fundly, to offer TYC $15,000. 43rd Street and Lutheran Hospi- few people, don’t hire locally and Mixing it up called Cafe Zona Sur, serving Given that puny sum, the gar- tal—the area’s largest employer— come with a wave of gentrification,” “We want a healthy and dynamic espresso and locally baked goods, den’s days look numbered,but back- on the waterfront at 55th Street as said Ms. Yeampierre. mix of all firms,” said Andrew Kim- and featuring a small bar. ers are not about to throw in the evidence of a group’s lasting impact. A pet-product design company ball, chief executive of Industry City. “I noticed a change and thought, trowel.“Roger That is central to the Both landmarks date to the first half called Modko,for example,employs To help draw them,the owners— you know what? We have to open up Crown Heights neighborhood,” of the 20th century, when a large five designers and managers in its a partnership led by Jamestown a different kind of restaurant in this said Chris McNally, a resident who Scandinavian community called the Industry City office. But when it Properties, Angelo Gordon and neighborhood,” he said. Business donated $20 on Fundly. neighborhood home. moved in,Modko took 4,000 square Belvedere Capital—are replacing has been brisk. Ⅲ —marine cole

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June 16, 2014 | Crain’s New York Business | 19 Special Advertising Section

Special Advertising Section

Insights on the NY Real Estate Industry HOW TO PICK THE BEST BROKER FOR YOUR BUSINESS NEEDS By Alec Foege

A n established New York law firm has dramati- deal making perspective. as the business looking for space. A law firm with an cally different space requirements from a start- “You don’t want an agent who just arrived from out office-intensive culture will need more square feet than up tech company – this seems pretty obvious. of town,” says Woody Heller, executive managing direc- a technology company looking for an open-loft feel. But not all companies take the same care in se- tor at Savills Studley, a commercial real estate services Thoughtful brokers will also consider how many em- lecting a real estate broker as they do in building their firm that represents tenants. “A good broker is facile with ployees will ultimately inhabit the space – this will help businesses. the customs of the New York market.” determine how many air-conditioning units, bathrooms That can be a big tactical mistake, says Todd Korren, As with residential real estate, personal referrals are and elevators the property will need. executive managing director for Manhattan at Massey a good way to start the process of finding a commer- An experienced broker will also know about more Knakal Realty Services, which represents owners and cial broker, but additional research is usually required. technical considerations, such as the building’s core sellers of commercial and retail property in the New Korren says attorneys and accountants are also good re- depth, which is the distance between the elevator shafts York area. sources for pinpointing the right real estate broker, as are and the windows. “The core depth determines how you “Especially when you’re talking about Manhattan New York-focused trade magazines. can lay out the space,” says Heller. “You may not have the and the other boroughs,” Korren says, “there are so many It’s important to ask potential candidates for exam- depth to have a private office, a secretary station and a little areas, and they’re all different. You need a broker ples of other assignments they have completed, and to hallway.” who knows the neighborhood you’re interested in, but have them explain how they satisfied their clients’ spe- These days, New York’s best commercial real estate also some alternatives.” cific requirements. brokers act more like consultants or advisers, due to the Equally important when choosing a broker is find- Experts also advise asking whether the broker has complexity and nuances often involved in finding an ap- ing someone who understands the lay of the land from a worked with companies in the same industry or sector propriate space. “There is so much information readily available online,” Korren says, “but you need someone capable of interpreting and analyzing that data.” INSIDE: For example, a corporation seeking 500,000 square feet may be looking for a new building in a prime lo-

HOW TO PICK THE BEST BROKER FOR YOUR BUSINESS NEEDS ...... S1 cation, but another, smaller company may want 5,000 square feet in an older, more unconventional space. An

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W ith retail rents in Manhattan this spring aver- square foot in Manhattan,” Griffin says. “But they do [Avenue] between Eastern Parkway and Empire aging around $139 per square foot, an 11% in- exist.” He suggests that the outer reaches of the Lower Boulevard is a pretty dynamic corridor,” he says. crease over 2013 prices, according to the Real East Side and Chinatown may elicit some spaces in that The appeal for commercial tenants of blocks in Estate Board of New York, finding affordable range, as may locations “far in the deeper ends of Penn those areas is the mix of businesses, which typically in- commercial or retail space in New York City is hard Plaza.” cludes a branch of at least one national fast-food chain enough. But what if you were limited to around $50 per Griffin admits that such reasonably priced prop- and a bank. square foot? What spaces could you afford in Manhat- erties would be the exception in Manhattan, however. Even in trendy neighborhoods such as Williams- tan and the other boroughs? Spaces in that range would either be “really off the beat- burg and Greenpoint, properties in the modest $50 per Surprisingly, seasoned real estate pros say the quest en path or surrounded by less desirable businesses,” he square foot range can be found if you look a few blocks for a $50 per square foot commercial property is not fu- says. off the main strips like Bedford Avenue. tile, and in some cases might unearth the perfect space, “For businesses that have an adventurous customer Brooklyn particularly for an adventurous business on the rise. base or entrepreneurial retailers who don’t want to go In Brooklyn, the options are more varied, but even here, with the crowd, there are a lot of opportunities,” says Manhattan affordable rents aren’t as common as they used to be. Griffin. He also points to Greenpoint’s Boerum Hill and Sure, the cost of ground-floor retail space in Manhattan Five years ago, retail rents in prime stretches of up-and- Gowanus neighborhoods for promising opportunities. has skyrocketed above $3,500 per square foot in prime coming neighborhoods such as Cobble Hill averaged areas such as Fifth Avenue between East 49th and East between $35 and $50 per square foot, whereas they have Queens 59th streets, but Nick Griffin, a commercial broker at since tripled. Queens offers another up-and-coming opportunity for Brooklyn-based aptsandlofts.com, says $50 per square Timothy King, a managing partner at CPEX, a businesses shopping in the $50 per square foot bracket. foot is still not completely out of the question in the leasing firm with offices in Brooklyn and Manhattan, Long Island City has been on ascendance for the last city’s priciest borough. says there are currently 34 distinct corridors with $35 few years, with Sunnyside and Astoria as the newest hot “It’s pretty tough to get something for $50 per to $40 per square foot spaces in Brooklyn. “Nostrand spots. “One of the real issues in Queens is, as you expand the population density, you need commercial density as well,” Griffin says. The borough is also becoming a popular destination for technology startups. The Bronx The commercial real estate environment of the Bronx benefits from being in the borough with the third highest population density, after Manhattan and Brooklyn. Retail has recently flourished in the East Bronx, due to an influx of young professionals and families fleeing increasingly unaffordable Manhattan. In areas such as Throggs Neck, Morris Park, Co- op City and Pelham Parkway, larger scale retail developments are now commanding $80 to $100 per square foot. This is due to national retailers realizing they can capture the benefits of high foot traffic without paying Manhattan-level rents. Small businesses should easily be able to find $50 per square foot rents in the areas surrounding these developments and benefit from the halo effect. Staten Island Commercial real estate rates have been relatively stable on Staten Island over the last 15 to 20 years, with retail rents running between $20 and $25 per square foot. More recently, however, landlords have begun asking for $35 to $40 per square foot, but those higher values may be challenged. Vacant storefronts are becoming a common sight on many of the borough’s commercial strips, perhaps presenting an opportunity for destination businesses. “A lot of the retail vacancies are due to unrealis- tic expectations of the landlords,” said Jon Salmon, a broker and owner of Salmon Real Estate in Castleton Corners, at a recent Staten Island Small Business De- velopment Center advisory board meeting. Let the bar- gaining begin!

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BNY Mellon Brookfi eld Offi ce Lexus Represented BNY Mellon in Properties Represented Lexus in the sale of its headquarters Represented Brookfi eld connection with the net located at One Wall Street Offi ce Properties, as lease of an offi ce building in lower Manhattan for landlord, in a lease to in the Meatpacking district $585 million to a joint Time Inc. of 700,000 of New York City to serve venture led by Macklowe square feet of space as the home of a new Properties. at 225 Liberty Street, branding concept for which will become the Lexus. magazine company’s new headquarters in lower Manhattan in 2015.

RFR Realty LLC Hudson Yards Aareal Capital Represented RFR Realty Represented the agent Corporation LLC in a lease of 135,000 and lead lender in a $250 Represented Aareal Capital square feet of ofﬁ ce space million leasehold mortgage Corporation as the senior to Grant Thornton LLP at loan for the construction of lender in connection with 757 Third Ave in New York, the platform on the Eastern a $125 million mortgage New York. Rail Yards portion of the loan secured by the Beverly Hudson Yards project. Hilton Hotel located in Beverly Hills, California.

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T he events of 9/11 brought major changes when tween level of security and cost. This means companies mount,” says BlackRock’s Knafo. “If you have a properly it came to protecting Class A commercial build- must understand the risks a business in a Class A build- trained and supervised team aligned with your corpo- ings in New York. Almost immediately, one of ing experiences on a daily basis and weigh them against rate culture, you can count on effective security.” the world’s premier business real estate hubs the requirements of the company’s employees and ven- A good security program accommodates all of these began locking down and beefing up security measures. dors. Large buildings located in high-traffic areas typi- factors, while accounting for the fact that even the best- Preparing for the unexpected became the security in- cally have a mix of employees, visitors and vendors ac- laid plan needs room for improvisation. dustry’s practice. But the guidelines for securing some of cessing the site and oftentimes moving between floors. For this reason, Mulligan advises his clients to or- the most valuable and visible commercial properties in In addition, many of these buildings have large public ganize regular tabletop exercises, during which security the world have evolved in the years since 2001, becom- atriums in their lobbies. personnel, building personnel and management gather ing more sophisticated and effective along the way. Sometimes the most mundane details, such as for open discussions on how they might react to a range “There are very few situations that you know about whether security personnel screen employees as well of sudden and extreme threats. “With an increase in in advance,” says Kevin Mulligan, executive vice presi- as visitors to a building, hold the key to a more secure workplace violence,” he says, “there are a lot more things dent at Manhattan-based Mulligan Security, which man- workplace. “The quality of your security team is para- to think about.” ages security services for many prime high-rise commercial buildings in New York City. “You never know what’s going to happen.” As a result, says Mulligan, New York’s Class A buildings have developed a framework of security systems and procedures designed for maximum flexibility and effectiveness. Tenants of Class A buildings, while concerned about the safety of their employees and assets, are typically drawn to a prime facility and location for aesthetic reasons. They are highly focused on how well the building suits their brand, their employees and their customers. But companies also understand that their employees are their most valuable assets – the trick is to protect them without compromising the main reasons they selected the building in the first place. While security firms may offer businesses complex, costly solutions, true security begins with the culture of a building and the companies that inhabit it. “You have to build a culture where people think about security,” says Larry Knafo, a managing director at BlackRock who previously worked in Mayor Giuliani’s Office of Emergency Management. “You have to educate staff about piggy- backing rules [which prohibit two people from entering a building together]; when people see something, they have to know how to get involved.” While advanced technologies, such as biometric doorknobs that only unlock for authorized fingerprints, can also play a key role, preparation must begin at the most basic level, with the employees of the security firm a business chooses. Mulligan says his company offers higher pay and better benefits to its security personnel than competitors do. He believes attracting more dedicated and experienced employees is a crucial link in securing the city’s “YOU HAVE TO BUILD A top-tier buildings. Perhaps the second most important way for New York companies to ready their buildings for a crisis is CULTURE WHERE PEOPLE to establish when occupants should evacuate and when they should take shelter in place, which entails sealing off the building from a hazardous outside environment. In dense areas of Manhattan, where tall office buildings THINK ABOUT SECURITY” are closely clustered, knowing which approach to take in different scenarios is crucial. A steam-pipe explosion or flooding situation might —Larry Knafo, Managing Director at BlackRock warrant the shelter-in-place option, but other kinds of emergencies require more serious measures. “If you lose power, you want to evacuate,” says Mulligan. Another consideration is establishing a balance be-

S5 Special Advertising Section Special Advertising Section

(continued from S1) property details that are relevant to the companies they are seeking to place. Some businesses prefer higher floors and some want lower ones. For others, a LEED- “THESE DAYS, NEW YORK’S certified or green building is important. Nearly everyone is looking for access to natural light. A seasoned broker will know, for example, that the BEST COMMERCIAL REAL height of the windows is critical in an open space, especially if the goal is to have natural light penetrate as far as possible into the space, says Heller. ESTATE BROKERS ACT More important, perhaps, than any of these concerns, is the compatibility of the broker with the business MORE LIKE CONSULTANTS he or she is assisting. “You need a broker you can trust and you like,” says Korren. “In today’s market, there’s a OR ADVISERS, DUE TO THE lot less room for error.”

COMPLEXITY AND NUANCES Crain’s On the Market: Insights into the NY Real Estate Industry is a special advertising section produced by Crain’s Custom Connections Studio. For more information about this and OFTEN INVOLVED IN FINDING other upcoming sections, please contact Trish Henry at [email protected] or (212) 210-0711. AN APPROPRIATE SPACE.”

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TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM POSITION PUBLIC & LEGAL NOTICES Amalgamated Life Insurance Notice of Qualification of Blackstone Notice of Qualification of NJS.COM, Notice of Qualification of BAM Asset AVAILABLE One Market Plaza Investment Partners LLC. Authority filed with Secy. of Management, LLC. Authority filed with Company is committed to L.P. Authority filed with NY Dept. of State of NY (SSNY) on 05/27/14. NY Dept. of State on 5/9/14. Office International Licensing Manager preventing fraud in regard to the State on 4/10/14. Office location: NY Office location: NY County. LLC location: NY County. Princ. bus. addr.: Material ConneXion (New York, NY) insurance coverage it issues. County. Princ. bus. addr.: c/o The formed in Delaware (DE) on 03/16/12. c/o Build America Mutual, 1 World Therefore, Amalgamated Life, as Blackstone Group L.P., 345 Park Ave., SSNY designated as agent of LLC Financial Ctr., 27th Fl., NY, NY 10281. Reqs bach’s or frgn equiv deg in int’l NY, NY 10154. LP formed in DE on upon whom process against it may LLC formed in DE on 4/16/14. NY Sec. bus or rel field & 5 yrs exp in job required by the New York State 2/24/14. NY Sec. of State designated be served. SSNY shall mail process of State designated agent of LLC offered or 5 yrs exp ensuring licensee Department of Financial Services agent of LP upon whom process against to c/o Corporation Service Co., 80 upon whom process against it may be compliance w/ contractual terms & makes the following statement: it may be served and shall mail process State St., Albany, NY 12207-2543. served and shall mail process to: c/o conditions. Also reqs 3 yrs exp dvlp’g to: c/o CT Corporation System, 111 DE addr. of LLC: 2711 Centerville CT Corporation System, 111 8th Ave., & presenting bus dvlpmt presentations 8th Ave., NY, NY 10011, regd. agent Rd., Ste. 400, Wilmington, DE 19808. 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Office loc: NY to: 202 Centre St., 6th Fl., NY, NY operating transitional residences for NY Dept. of State on 5/9/14. Office 333 Westchester Avenue County. SSNY has been designated 10013. Purpose: any lawful activity. homeless adults and families. This is White Plains, NY 10604 location: NY County. Princ. bus. addr.: an open-ended solicitation; there is no as agent upon whom process against 800-624-5844 the LLC may be served. SSNY shall Notice of Formation of MS II TP4 LLC. 2325 E. Camelback Rd., Ste. 1100, due date for submission. Phoenix, AZ 85016. LLC formed in mail process to: Eva Y Tsai, 136 Arts. of Org. filed with Secy. of State The goal is to develop transitional Schuessler Ln, Preston Hollow, NY of NY (SSNY) on 05/13/14. Office DE on 2/11/14. NY Sec. of State housing that can be used to meet our Notice of Qual. of Stellar West 178 12469. Purpose: Any Lawful Purpose. location: NY County. SSNY designated designated agent of LLC upon whom shelter capacity needs of today, and LLC, Auth. filed Sec'y of State as agent of LLC upon whom process process against it may be served be flexible enough to adapt to meet (SSNY) 2/6/14. Office loc.: NY Notice of Formation of Bronx against it may be served. SSNY shall and shall mail process to: c/o CT our needs of tomorrow. Corporation System, 111 8th Ave., County. LLC org. in DE 12/20/13. Improvements Group LLC. Arts. of mail process to Phillips Nizer LLP Specifically, DHS is looking for SSNY desig. as agent of LLC upon Org. filed with Secy. of State of NY (MAL), 666 Fifth Ave., NY, NY 10103. NY, NY 10011. DE addr. of LLC: 1209 development opportunities for shelter whom process against it may be (SSNY) on 4/28/14. Office location: Purpose: Any lawful activity. Orange St., Wilmington, DE 19801. sites between 40,000 and 100,000 served. SSNY shall mail copy of NY County. SSNY designated as Cert. of Form. filed with DE Sec. of square feet of space appropriately proc. to NRAI, 111 Eighth Ave., NY, agent of LLC upon whom process Notice of Formation of AMERICAN State, 401 Federal St., Dover, DE zoned for transitional housing for both NY 10011, the Reg. Agt. upon whom against it may be served. SSNY shall NORTHERN MARIANAS ECONOMIC 19901. Purpose: all lawful purposes. Families with Children and Single proc. may be served. DE off. addr.: mail process to: The LLC, 244 DEVELOPMENT FUND, LLC. Arts. of Adults. Notice of Qualification of 95th and Third 160 Greentree Dr., Ste. 101, Dover, Madison Avenue, Apt. 15A, NY, NY Org. filed with Secy. of State of NY We will be scheduling an DE 19904. Cert. of Form. on file: 10016. Purpose: any lawful activity. (SSNY) on 05/09/14. Office location: LLC. Authority filed with NY Dept. of informational session for interested SSDE, Townsend Bldg., Dover, DE NY County. SSNY designated as State on 5/15/14. Office location: NY parties to take place at 180 Water St., 19901. Purp.: any lawful activities. Notice of Qualification of IMAX LABS, agent of LLC upon whom process County. LLC formed in DE on 5/5/14. 12th Floor on Wednesday, June 25, LLC. Authority filed with Secy. of against it may be served. SSNY shall NY Sec. of State designated agent of 2014 from 10 a.m. to Noon. Contact Notice of Qual. of Valarc Holdings, LLC, State of NY (SSNY) on 4/18/14. Office mail process to Corporation Service LLC upon whom process against it [email protected] or (212) 361- Auth. filed Sec'y of State (SSNY) location: NY County. LLC formed in Co., 80 State St., Albany, NY 12207- may be served and shall mail process 7907 to RSVP. For more information, 9/3/13. Office loc.: NY County. LLC Delaware (DE) on 4/10/14. SSNY 2543. Purpose: Any lawful activity. to: c/o CT Corporation System, 111 visit www.nyc.gov/dhs. org. in DE 8/15/13. SSNY desig. as designated as agent of LLC upon 8th Ave., NY, NY 10011, regd. agent

agent of LLC upon whom process whom process against it may be BRIDGE KIDS OF NEW YORK, LLC, upon whom process may be served. against it may be served. SSNY shall served. SSNY shall mail process to: Arts. of Org. filed with the SSNY on DE addr. of LLC: 1209 Orange St., mail copy of proc. to Att: Hari Attn.: General Counsel, 110 East 59th 05/15/2014. Office loc: NY County. Wilmington, DE 19801. Cert. of Form. Ramanan, 900 Third Ave., Ste. 202, St., Ste. 2100, NY, NY 10022. Address SSNY has been designated as agent filed with DE Sec. of State, 401 NY, NY 10022. DE off. addr.: CSC, to be maintained in DE: RL&F upon whom process against the LLC Federal St., Dover, DE 19901. 2711 Centerville Rd., Wilmington, DE Service Corp., 920 N. King St., Fl. 2, may be served. SSNY shall mail process Purpose: all lawful purposes. TELECOMMUNICATIONS 19808. Cert. of Form. on file: SSDE, Wilmington, DE 19801. Arts of Org. to: 330 Third Ave., Apt. 8L, NY, NY Townsend Bldg., Dover, DE 19901. filed with the DE Secy. of State, 401 10010. Purpose: Any Lawful Purpose. NOTICE OF QUALIFICATION of Kiess NYC'S MOTOROLA Purp.: any lawful activities. Federal St., Dover, DE 19901. Realty, L.L.C. LLC Application for MOTOTRBO SPECIALISTS Purpose: any lawful activities. Notice of Formation of DILIP D. Authority filed with Secy of State of NY NOTICE OF FORMATION OF LIMITED MADNANI, M.D., PLLC. Arts. of Org. (SSNY) 02/06/2014. LLC formed in MOTOTRBOTM LIABILITY COMPANY. NAME: HAY Notice of Qual. of Tiger Global Long filed with Secy. of State of NY OH 01/21/2014. LLC Office located Professional Digital Two-way Radio System provides significant productivity PARTNERS LLC. Articles of Organization Opportunities Brazil, LLC, Auth. filed (SSNY) on 05/30/14. Office location: NY Co. LLC principal business & gains - reliably and affordably. were filed with the Secretary of State Sec'y of State (SSNY) 9/9/13. Office NY County. Princ. office of PLLC: office address:11 Broadway, Ste 615, • Clearer voice capability and enhanced of New York (SSNY) on 10/19/05. loc.: NY County. LLC org. in DE 9/5/13. 820 Second Ave., Ste. 3A, NY, NY NY, NY 10004. SSNY designated battery life Office location: New York County. SSNY desig. as agent of LLC upon 10017. SSNY designated as agent of agent of LLC upon whom process • Integrated voice and data for better productivity and privacy SSNY has been designated as agent whom process against it may be PLLC upon whom process against it against LLC may be served & SSNY • Text messaging of the LLC upon whom process served. SSNY shall mail copy of proc. may be served. SSNY shall mail shall mail copy to: Joshua E Kiess, • Doubles channel call capacity for against it may be served. SSNY shall to Att: Charles Coleman III, 101 Park process to the PLLC at the addr. of PO Box 8452, Columbus, OH 43201. the price of one license mail a copy of process to the LLC, Ave., 48th Fl., NY, NY 10178. DE off. its princ. office. Purpose: Practice of LLC Certificate of Organization filed *$100 TRADE-IN PER RADIO P.O. Box 1755, New York, New York addr.: CSC, 2711 Centerville Rd., profession of medicine. with OH Secy of State, 180 E Broad Call to learn more or to 10156-1755, ATTN: Farbod Hay. Wilmington, DE 19808. Cert. of Form. St, Ste 103, Columbus, OH 43215. schedule a professional, on file: SSDE, Townsend Bldg., Dover, Notice of Qualification of BREP OMP no-obligation survey or Purpose: For any lawful purpose. LLC Purpose: any lawful act. on-site demo. DE 19901. Purp.: any lawful activities. Associates L.P. Authority filed with NY NOTICE OF QUALIFICATION of Dept. of State on 3/13/14. Office loca- Notice of Qualification of Citadel Roberts Fund Management, LLC. Notice of Qualification of Especial LLC. tion: NY County. Princ. bus. addr.: c/o Content LLC. Authority filed with Authority filed with Secy of State of Authority filed with Secy. of State of NY The Blackstone Group L.P., 345 Park Secy. of State of NY (SSNY) on NY (SSNY) on 3/10/14. LLC formed (SSNY) on 02/12/14. Office location: Ave., NY, NY 10154. LP formed in 1/28/14. Office location: NY County. in DE on 11/22/13. Office location: NY County. LLC formed in Delaware DE on 2/26/14. NY Sec. of State LLC formed in Delaware (DE) on 33 East 33rd Street NY County. Princ. bus. addr.: 1350 (DE) on 02/10/14. SSNY designated designated agent of LP upon whom 1/23/14. SSNY designated as agent New York, NY 10016 Avenue of Americas, 2nd Fl., NY, NY as agent of LLC upon whom process process against it may be served of LLC upon whom process against it 212-532-7400 10019. SSNY designated agent upon against it may be served. SSNY shall and shall mail process to: c/o CT may be served. SSNY shall mail www.metrocomradio.com whom process may be served and mail process to: National Registered Corporation System, 111 8th Ave., NY, process to: National Registered shall mail copy of process against Agents, Inc., 111 Eighth Ave., NY, NY NY 10011, regd. agent upon whom Agent, Inc., 111 Eighth Ave., NY, NY LLC to: Roberts Fund Management, 10011, also the registered agent. process may be served. DE addr. of LP: 10011, also the registered agent. 1350 Avenue of Americas, 2nd Fl., Address to be maintained in DE: c/o The Corporation Trust Co., 1209 Address to be maintained in DE: NY, NY 10019. DE address of LLC: National Registered Agents, Inc., 160 Orange St., Wilmington, DE 19801. National Registered Agents, Inc., 160 VISIT OUR WEBSITE c/o InCorp, One Commerce Center Greentree Dr., Ste. 101, Dover, DE Name/addr. of genl. ptr. available Greentree Dr., Ste. 101, Dover, DE 1201 Orange St., #600, Wilmington, 19904. Arts of Org. filed with the DE from NY Sec. of State. Cert. of Form. 19904. Arts of Org. filed with the DE CRAINSNEWYORK.COM DE 19899. Cert of Formation filed DE Secy. of State, Division of Corporations, filed with DE Sec. of State, 401 Secy. of State, John G. Townsend Sec. of State, 401 Federal St., Dover, 401 Federal St., Ste. 4, Dover, DE Federal St., Dover, DE 19901. Bldg., 401 Federal St., Dover, DE DE 19901. Purpose: any lawful act. 19901. Purpose: any lawful activities. Purpose: all lawful purposes. 19901. Purpose: any lawful activities.

26 | Crain’s New York Business | June 16, 2014 P026-28CL_CN_20140616.qxp 6/12/2014 12:36 PM Page 27

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Notice of Formation of Limited Notice of Qualification of Vibrant Notice of Qual. of Texas Absolute Notice of Qualification of Alden Notice of Qualification of Washington Liability Company (LLC). Name: MSA Opportunity Fund GP, LLC. Authority Credit Opportunities Strategy LP, Auth. Global CRE Opportunities Fund, LP. Square Technologies LLC. Authority PARTNERS HC, LLC. Articles of filed with NY Dept. of State on 5/19/14. filed Sec'y of State (SSNY) 9/27/13. Authority filed with NY Dept. of State filed with NY Dept. of State on 3/27/14. Organization filed with Secretary of Office location: NY County. LLC formed Office loc.: NY County. LP org. in DE on 4/25/14. Office location: NY Office location: NY County. LLC State of New York (SSNY) on April 25, in DE on 8/1/13. NY Sec. of State 9/26/13. SSNY desig. as agent of LP County. LP formed in DE on 4/1/14. formed in DE on 3/4/14. NY Sec. of 2014. County: New York. SSNY designated agent of LLC upon whom upon whom process against it may be NY Sec. of State designated agent of State designated agent of LLC upon designated as agent of LLC upon process against it may be served and served. SSNY shall mail copy of proc. LP upon whom process against it may whom process against it may be whom process against it may be shall mail process to the principal to Att: Donald Morgan III, 399 Park be served and shall mail process to: served and shall mail process to: c/o served. SSNY shall mail copy of business addr.: c/o DFG Investment Ave., NY, NY 10022. DE off. addr.: CSC, 885 3rd Ave., 34th Fl., NY, NY 10022, CT Corporation System, 111 8th Ave., process to 25 East 69th Street, New Advisers, Inc., 655 Third Ave., 23rd Fl., 2711 Centerville Rd., Wilmington, DE principal business address. DE NY, NY 10011. DE addr. of LLC: The York, NY 10021-4925. Purpose: to NY, NY 10017, Attn: Moritz Hilf. DE 19808. Cert. of LP on file: SSDE, address of LP: c/o The Corporation Corporation Trust Co., 1209 Orange engage in any and all business for addr. of LLC: The Corporation Trust Townsend Bldg., Dover, DE 19901. Trust Co., 1209 Orange St., Wilmington, St., Wilmington, DE 19801. Cert. of which LLCs may be formed under the Co., 1209 Orange St., Wilmington, DE Name/addr. of each gen. ptr. avail. at DE 19801. Name/address of genl. Form. filed with DE Sec. of State, New York LLC Law. 19801. Cert. of Form. filed with DE Sec. SSNY. Purp.: any lawful activities. ptr. available from NY Sec. of State. 401 Federal St., Dover, DE 19901. of State, Townsend Bldg., Dover, DE Cert. of LP filed with DE Sec. of Purpose: all lawful purposes. Notice of Formation of Ferro’s License 19901. Purpose: all lawful purposes. NOTICE OF FORMATION OF RENIAS State, P.O. Box 898, Dover, DE Holdings LLC. Arts of Org. filed with LLC. Arts of Org filed with Secy of 19903. Purpose: all lawful purposes. Notice of Formation of Whim of Iron Secy of State of NY (SSNY) on Notice of formation of JINNIU NEW State of NY (SSNY) on 10/7/13. Office LLC. Arts. of Org. filed with NY Dept. 05/12/2014. Office location: New York YORK LLC. Art. Of Org. filed w. Secy location: NY County. SSNY designated Notice of Qualification of ARCP OC of State on 5/8/2014. Office location: County. Princ. office of LLC: 145 East of State of NY (SSNY) on 09/16/2013. agent upon whom process may be FEURA BUSH NY, LLC. Authority filed NY County. Sec. of State designated 50th Street, New York, NY 10022. Office Loc: New York County. SSNY served and shall mail copy of with Secy. of State of NY (SSNY) on agent of LLC upon whom process SSNY designated as agent of LLC designated as agent of LLC upon process against LLC to: 149-44 14th 05/07/14. Office location: NY County. against it may be served and shall upon whom process against it may whom process against it may be ave, 2FL, Whitestone, NY 11357. LLC formed in Delaware (DE) on mail process to the principal business be served. SSNY shall mail process served. SSNY shall mail copy of Principal business address: 511 East 04/24/14. SSNY designated as agent address: c/o New York Wheel LLC, 21 to the LLC at the addr. of its princ. process to: c/o Jinniu New York LLC, 83rd St, apt 1A, NY, NY 10028. of LLC upon whom process against Penn Plaza, NY, NY 10001, Attn: Chief Office. Purpose: Any lawful activity. c/o: 2879 Venezia Court, Chino Hills, CA Purpose: any lawful act. it may be served. SSNY shall mail Executive Officer. Term: until 12/31/2114. 91709. Purpose: Any lawful activity. process to c/o CSC, 80 State St., Purpose: any lawful activity. Notice of Formation of STRATEGIC SQN ECHO II, LLC, a foreign LLC, Albany, NY 12207. DE addr. of LLC: Notice of Formation of Hudson Plaza DESIGN CONSULTING LLC. Arts. Of Notice of Qual. of Valinor Capital Authority filed with the SSNY on 2711 Centerville Rd., Ste. 400, Development LLC. Arts of Org. filed Org. filed w/ Secy. of State of NY Partners SPV XVII, LLC, Auth. filed 3/19/14. Office location: New York Wilmington, DE 19808. Arts. of Org. with Secy. of State of NY (SSNY) on (SSNY) on 3/19/14. Office in Kings Sec'y of State (SSNY) 12/4/13. Office County. SSNY is designated as agent filed with DE Secy. of State, Div. of 04/28/2014. Office Location: NY County. SSNY designated agent of loc.: NY County. LLC org. in DE upon whom process against the LLC Corps., 401 Federal St., Ste. 4, Dover, County. SSNY designated as agent LLC upon whom process against it 12/3/13. SSNY desig. as agent of may be served. SSNY shall mail DE 19901. Purpose: Any lawful of LLC upon whom process against may be served. SSNY shall mail LLC upon whom process against it process to: SQN Capital Management, activity. LLC, 110 William Street, 26th Fl., NY, it may be served. SSNY shall mail process to The LLC c/o Richard may be served. SSNY shall mail copy of proc. to Att: David NY 10038. General Purposes. process to the LLC, 25 Central Park Murphy, 148 Clinton Avenue, Apt 1, NOTICE OF APP. FOR AUTH. of West, Ste 12B, NY, NY 10023. Brooklyn, NY 11205. Purpose: any Angstreich, 510 Madison Ave., 25th Flashopp LLC, a foreign LLC. App. Fl., NY, NY 10022. DE off. addr.: CSC, 211 East S & W LLC, Arts of Org filed Purpose: Any Lawful Purpose. lawful act/activity. for Auth. filed Sec'y of State (SSNY) with SSNY on 05/20/13. Off. Loc.: 2711 Centerville Rd., Wilmington, DE NOTICE OF FORMATION OF BOWERY NOTICE OF FORMATION OF AMERICA 4/22/2014. LLC organized in DE on 19808. Cert. of Form. on file: SSDE, New York County, SSNY designated 4/15/2014. NY office location: NY as agent of LLC upon whom process 199 REALTY LLC. Arts of Org. filed FDS LLC . Arts of Org filed with Townsend Bldg., Dover, DE 19901. with Secy of State of NY (SSNY) on Secy of State of NY (SSNY) on county. SSNY designated as agent of Purp.: any lawful activities. against it may be served. SSNY shall LLC upon whom process against it mail a copy of process to: The LLC, 1/3/14. Office location: NY County. 04/30/14. Office location: NY County. may be served. SSNY shall mail Notice of Formation of HOOSIER LLC. 239-45 66th Ave, Douglaston, NY SSNY designated agent upon whom SSNY designated agent upon whom copy of process: 250 W. 57th St., Arts. of Org. filed with Secy. of State 11362. Purpose: to engage in any process may be served and shall process may be served and shall #2003, NY, NY 10107, Attn: G. of NY (SSNY) on 5/1/14. Office lawful act. mail copy of process against LLC to mail copy of process against LLC to principal business address: 60 BROAD principal business address: SABAJ Nordlinger, princ. ofc. address of location: NY County. SSNY designated Notice of Formation of BATALI ST, STE 3502, NY, NY 10004. LAW, P.C., 349 FIFTH AVE, THIRD LLC. Purpose: any lawful activities. as agent of LLC upon whom process Purpose: any lawful act. against it may be served. SSNY shall PRODUCTIONS LLC. Arts. of Org. FLOOR, NEW YORK, NY 10016. Notice of Formation of MAMYS, L.L.C. filed with Secy. of State of NY (SSNY) mail process to: c/o Paul Hastings Notice of Qual. of Two Sigma Purpose: any lawful act Arts. of Org. filed with Secy. of State on 05/21/14. Office location: NY LLP, 75 E. 55th St., NY, NY 10022, Hamilton Fund, LLC, Auth. filed Sec'y of NY (SSNY) on 04/03/14. Office County. Princ. office of LLC: 45 E. 20th NES GROUP HOLDINGS LLC, Arts. Attn: Barry Sher, Esq. Purpose: any of State (SSNY) 10/28/13. Office loc.: location: NY County. Princ. office of St., NY, NY 10003. SSNY designated of Org. filed with the SSNY on lawful activity. NY County. LLC org. in DE 10/24/13. LLC: 2 River Terrace, 19E, NY, NY as agent of LLC upon whom process 05/29/2014. Office loc: NY County. SSNY desig. as agent of LLC upon 10282. SSNY designated as agent of Notice of Formation of Ashford Locke against it may be served. SSNY shall SSNY has been designated as agent whom process against it may be LLC upon whom process against it Builders LLC. Arts. of Org. filed with mail process to Attn: Cathy Frankel, upon whom process against the LLC served. SSNY shall mail copy of may be served. SSNY shall mail Secy. of State of NY (SSNY) on Esq. at the princ. office of the LLC. may be served. SSNY shall mail proc. to Att: Matthew Siano, Esq., process to c/o Ingram Yuzek Gainen 4/29/14. Office location: NY County. Purpose: Any lawful activity. process to: 20 W 33rd St., 6th Flr., NY, 100 Ave. of the Americas, 16th Fl., NY 10001. Reg. Agent: Nissim Gindi, Carroll & Bertolotti LLP, 250 Park SSNY designated as agent of LLC upon NOTICE OF FORMATION OF NY, NY 10013. DE off. addr.: CSC, 20 W 33rd St., 6th Flr., NY, NY 10001. Ave., 6th Fl., NY, NY 10177. Purpose: whom process against it may be served. Oppenheimer + Close, LLC. Arts of 2711 Centerville Rd., Wilmington, DE Purpose: Any Lawful Purpose. Any lawful activity. SSNY shall mail process to: The Org filed with Secy of State of NY 19808. Cert. of Form. on file: SSDE, LLC, 826 Broadway, 11th Fl., NY, NY NOTICE OF FORMATION OF THM (SSNY) 5/21/14. Office location: NY Townsend Bldg., Dover, DE 19901. NOTICE OF FORMATION OF Jain 10003. Purpose: any lawful activity. Services LLC. Arts of Org filed with Co. SSNY designated agent upon Purp.: any lawful activities. Dental Studio PLLC. Arts of Org filed Secy of State of NY (SSNY) on Notice of Formation of VLC Columbus whom process may be served and with Secy of State of NY (SSNY) on 03/04/2014. Office location: NY & 86th, LLC, Art. of Org. filed Sec'y of shall mail copy of process against NOTICE OF FORMATION OF LIMITED 4/4/14. Office location: NY County. County. SSNY designated agent upon State (SSNY) 11/25/13. Office location: LLC to principal business address: LIABILITY COMPANY. NAME: VDG SSNY designated agent on whom whom process may be served and NY County. SSNY designated as 119 W 57th St, Ste 1515, NY, NY Spirits, LLC. Arts of Org filed with Secy process may be served and shall shall mail copy of process against agent of LLC upon whom process 10019. Purpose: any lawful act. of State of NY (SSNY) on 5/16/14. mail copy of process against PLLC Office location: New York County. SSNY to 29 E 46th St, NY, NY 10017. LLC to principal business address: against it may be served. SSNY shall Notice of Formation of Peacock Films designated as agent upon whom Principal business address: 20 E Telly Martinez, 926 Rev. James A mail copy of process to VLC USA, LLC, Art. of Org. filed Sec'y of State process may be served and shall 46th St, Ste 1300, NY, NY 10017. Polite Ave , Apt 1, Bronx, NY 10459. 154 Grand St., Ste. 4S07, NY, NY (SSNY) 2/19/14. Office location: NY mail copy of process against LLC to Purpose: any lawful act. Purpose: any lawful act. 10013. Purpose: any lawful activities. County. SSNY designated as agent principal business address: 430 West of LLC upon whom process against Broadway, #430, NY, NY 10012. Notice of Qualification of WLIB Tower Notice of Qualification of OLYMPUS Notice of Qualification of AREA it may be served. SSNY shall mail Purpose: any lawful purpose. There LLC. Authority filed with NY Dept. of PICTURES SERVICES, LLC. Authority SEAVIEW, LLC. Authority filed with copy of process to CSC, 80 State is no predetermined dissolution date. State on 5/14/14. Office location: NY filed with Secy. of State of NY (SSNY) NY Dept. of State on 2/28/14. Office St., Albany, NY 12207. Purpose: any County. LLC formed in IN on 4/22/14. on 05/14/14. Office location: NY location: NY County. LLC formed in lawful activities. Blueglass Partners LLC. Arts. of Org. NY Sec. of State designated agent of County. LLC formed in Delaware (DE) DE on 2/27/14. NY Sec. of State filed with Secy. of State of NY (SSNY) LLC upon whom process against it on 05/02/14. SSNY designated as designated agent of LLC upon whom Notice of Formation of Marti Fischer on 04/17/14. Off. loc.: NY Co. SSNY may be served and shall mail process agent of LLC upon whom process process against it may be served and Group, LLC. Arts of Org filed with the des. as agent of LLC upon whom to: CT Corporation System, 111 8th against it may be served. SSNY shall shall mail process to: c/o Ascent Real Secy of State of NY(SSNY) on process may be served. SSNY shall Ave., NY, NY 10011. IN and principal mail process to c/o Corporation Estate Advisors LLC, 271 Madison 4/15/14. Office location: NY County. mail process to c/o Robinson Brog, et business address: 40 Monument Circle, Service Co., 80 State St., Albany, NY Ave., 18th Fl., NY, NY 10016, principal SSNY designated as agent of LLC al., Attn: Marshall J. Gluck, 875 3rd Ste. 700, Indianapolis, IN 46204. Cert. 12207-2543. DE addr. of LLC: 2711 business address. DE address of LLC: upon whom process may be served. Ave., 9th Fl., New York, NY 10022. of Org. filed with IN Sec. of State, 302 Centerville Rd., Wilmington, DE 615 S. DuPont Hwy., Dover, DE 19901. SSNY shall mail process to: The LLC, Purpose: General W Washington St., Indianapolis, IN 19808. Arts. of Org. filed with Secy. Cert. of Form. filed with DE Sec. of 313 West 118th Street, New York, NY 46204. Purpose: all lawful purposes. of State, 401 Federal St., Dover, DE State, 401 Federal St., Dover, DE 10026. Purpose: Any lawful activity. NOTICE OF QUALIFICATION of 19901. Purpose: Any lawful activity. 19901. Purpose: all lawful purposes. Roberts Capital Fund I, LP. Authority Notice of Qualification of TEACHER Notice of Qualification of GERSSE LLC. filed with Secy of State of NY (SSNY) SYNERGY CLASSIC, LLC. Authority Notice of Qualification of READLY LLC. Notice of Qualification of INFLEXON, Authority filed with Secy. of State of NY on 3/10/14. LLC formed in DE on filed with Secy. of State of NY (SSNY) Authority filed with Secy. of State of NY LLC. Authority filed with Secy. of State (SSNY) on 05/19/14. Office location: 11/22/13. Office location: NY County. on 04/30/14. Office location: NY (SSNY) on 03/04/14. Office location: of NY (SSNY) on 05/12/14. Office NY County. LLC formed in Delaware Princ. bus. addr.: 1350 Avenue of County. LLC formed in Delaware (DE) NY County. LLC formed in Nevada location: NY County. LLC formed in (DE) on 04/07/14. Princ. office of LLC: Americas, 2nd Fl., NY, NY 10019. on 04/30/14. SSNY designated as (NV) on 04/24/13. SSNY designated Delaware (DE) on 10/09/13. SSNY 285 3rd Ave., Apt. 3, NY, NY 10010. SSNY designated agent upon whom agent of LLC upon whom process as agent of LLC upon whom process designated as agent of LLC upon SSNY designated as agent of LLC process may be served and shall against it may be served. SSNY shall against it may be served. SSNY shall whom process against it may be upon whom process against it may mail copy of process against LLC to: mail process to c/o Corporation mail process to the LLC, 1800 N. served. SSNY shall mail process to c/o be served. SSNY shall mail process Roberts Capital Fund I, LP, 1350 Service Co. (CSC), 80 State St., Military Trail, Ste. 110, Boca Raton, FL Corporation Service Co., 80 State St., to c/o Corporation Service Co., 80 Avenue of Americas, 2nd Fl., NY, NY Albany, NY 12207-2543. DE addr. of 33431. NV addr. of LLC: National Albany, NY 12207-2543. DE addr. of State St., Albany, NY 12207-2543. 10019. DE address of LLC: c/o LLC: c/o CSC, 2711 Centerville Rd., Registered Agents, Inc. of NV, 311 S. LLC: 2711 Centerville Rd., Ste. 400, DE addr. of LLC: 2711 Centerville InCorp, One Commerce Center 1201 Ste. 400, Wilmington, DE 19808. Division St., Carson City, NV 89703. Wilmington, DE 19808. Arts. of Org. Rd., Ste. 400, Wilmington, DE 19808. Orange St., #600, Wilmington, DE Arts. of Org. filed with Jeffrey W. Arts. of Org. filed with NV Secy. of filed with DE Secy. of State, Div. of Arts. of Org. filed with DE Secy. of 19899. Cert of Formation filed DE Bullock, Secy. of State, Div. of Corps., State, NV State Capital Bldg., 101 N. Corps., John G. Townsend Bldg., 401 State, 401 Federal St., #4, Dover, DE Sec. of State, 401 Federal St., Dover, 401 Federal St., Ste. 4, Dover, DE Carson St., Ste. 3, Carson City, NV Federal St., Ste. 4, Dover, DE 19901. 19901. Purpose: Restaurant reviews. DE 19901. Purpose: any lawful act. 19901. Purpose: Any lawful activity. 89701. Purpose: Any lawful activity. Purpose: Any lawful activity.

June 16, 2014 | Crain’s New York Business | 27 20140616-NEWS--0028-NAT-CCI-CN_-- 6/13/2014 2:52 PM Page 1

Tax incentives pay off for CEOs

Continued from Page 1 business elsewhere,” he said. Douglas Steiner opened a studio in moviemakers to bring their projects But then there’s the question of the Brooklyn Navy Yard,only to dis- to the city’s streets and studio lots, whether the state should be providing cover few wanted to film there be- the program has been expanded what amounts to handouts to giant cause of New York’s high costs. considerably over the years and now entertainment conglomerates that “We realized we had a white ele- shells out $420 million annually.Tax are thriving, gauged by what they pay phant,” said Mr. Steiner, who ap- experts say it is the most generous their CEOs. The Cuomo adminis- pealed to the state for help. program of its kind in the country. tration describes the incentive pro- The Cuomo administration gram as a tax credit,but tax experts say Biggest incentive clearly believes the money is well it’s more like a cash grant because TV Today, the lots at Steiner Studios spent.Earlier this month,it trumpet- producers and moviemakers qualify are booked solid with productions for ed that 2014 has already been a record to get certain expenses refunded even Girls and Boardwalk Empire.But Mr. newscom year for film and TV production in if their productions don’t generate any Steiner contends business would dry ROLL ’EM: The producers of HBO’s Girls have reaped the benefits of shooting in Brooklyn. New York, and studio owners say taxable income. up quickly without state assistance, their lots are bursting at the seams. “There’s no evidence, other than which helps producers defray up to Things figure to get only busier what’s been produced by the indus- 30% of the costs of hiring carpenters, also enhanced to encourage post- last month voting unanimously to next month, when filming is to start try, that demonstrates the benefits lighting specialists and other crew production work, such as editing expand the state’s $100 million in- for a live-action Netflix series about are commensurate with the costs,” members. (Costs for paying actors or and special effects, and to coax film- centive program to keep jobs from a Marvel superhero from Hell’s said Peter Solomon, an investment writers aren’t eligible.) makers to work upstate. heading to New York. Kitchen named Daredevil. Disney, banker who oversaw film produc- During the past 10 years, the To that end,the Cuomo adminis- Realizing they hold a winning one of the series’ backers, reported- tion in the city during the Koch ad- state has doled out $1.15 billion to tration in April said The Other hand,TV executives have begun de- ly received about $4 million in tax ministration and last year co- 523 film and TV productions. It is Woman, filmed in Yonkers and Har- manding that states offer more gen- breaks from the state. authored a report calling on the state the state’s largest business incentive rison and starring Cameron Diaz and erous perks to keep them around. to shrink the incentive program. program, behind one that encour- supermodel Kate Upton,spent “near- For instance,after officials in Mary- Credit or grant? Most major film studios contact- ages brownfield redevelopment, ac- ly $600,000 on hotel rooms alone.” land offered $4 million in tax cred- A spokesman for the Empire ed by Crain’s declined to comment cording to Mr. Solomon’s report. Indeed, New York has been so its, the makers of House of Cards State Development Corp. said the about the incentive program or their The Boston Consulting Group said successful in attracting movie and threatened to film their show else- incentive program attracted 181 executive compensation levels. in 2012 that TV and movie produc- TV productions that other states where unless they got more. Mary- projects to New York last year, rep- An NBCUniversal spokesman tion accounted for 94,000 full-time- have been forced to up the ante. land caved and extended $11.5 mil- resenting 126,000 jobs and more said the tax program is vital to help- equivalent jobs in New York City,up More than 40 states have launched lion in credits. than $2.1 billion in spending.“Film ing defray the high costs of operat- from 72,000 when the incentive film incentive programs and grant- “You have to wonder where this and television producers consistent- ing here: “Bringing a show to New program started. ed a total of $1.5 billion in goodies ends,” said Tax Foundation analyst ly cite the program as a leading fac- York is often a creative decision.Tax Initially designed for feature last year to the entertainment indus- Joseph Henchman. Ⅲ tor in their decision to film and pro- incentives make it possible.” films and TV series,the program last try, according to the Tax Founda- duce in New York—and the reason The program was started in year was extended to 2019 and ex- tion. Even Hollywood is feeling the LISTEN to a discussion at why they don’t choose to take their 2004, when real estate developer panded to include talk shows. It was heat, with the California Assembly CrainsNewYork.com/podcasts

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Formation of Akeedube Notice of Formation of Consulate NOTICE OF QUALIFICATION of PGR Notice of Qualification of WB58E66 Notice of Qualification of UNIVERSAL License Holdings, LLC. Arts of Org. Hotel Holdings I, LLC, Art. of Org. Media, LLC. Authority filed with Secy LLC. Authority filed with Secy. of AWARDS MANAGEMENT, LLC. filed with Secy of State of NY (SSNY) filed Sec'y of State (SSNY) 2/20/14. of State of NY (SSNY) on April 22, 2014. State of NY (SSNY) on 06/02/14. Authority filed with Secy. of State of NY on 05/28/2014. Office location: New Office location: NY County. SSNY Office location: NY County. LLC Office location: NY County. LLC (SSNY) on 06/02/14. Office location: York County. Princ. office of LLC: 145 designated as agent of LLC upon formed in MA on July 27, 2007. SSNY formed in Delaware (DE) on 05/28/14. NY County. LLC formed in Delaware East 50th Street, New York, NY 10022. whom process against it may be designated agent upon whom process Princ. office of LLC: 10 Glenville St., (DE) on 05/28/14. SSNY designated SSNY designated as agent of LLC served. SSNY shall mail copy of may be served and shall mail copy of 3rd Fl., Greenwich, CT 06831. SSNY as agent of LLC upon whom process upon whom process against it may process to c/o Hampshire Hotels process against LLC to principal designated as agent of LLC upon against it may be served. SSNY shall be served. SSNY shall mail process Mgmt., 200 W. 55th St., Ste. 42, NY, NY business address: 34 Farnsworth whom process against it may be mail process to c/o Corporation to the LLC at the addr. of its princ. 10019. Purpose: any lawful activities. Street, 2nd Floor, Boston, MA 02210. served. SSNY shall mail process to Service Co., 80 State St., Albany, NY Office. Purpose: Any lawful activity. Certificate of LLC filed with Secy of c/o Corporation Service Co., 80 12207-2543. DE addr. of LLC: 2711 Notice of Formation of East 162nd State of MA located: One Ashburton State St., Albany, NY 12207-2543. Centerville Rd., Ste. 400, Wilmington, Notice of Formation of Kimberly Street Associates LLC. Arts. of Org. Place, 17th Floor, Boston, MA DE addr. of LLC: 2711 Centerville DE 19808. Arts. of Org. filed with License Holdings LLC. Arts of Org. filed with Secy. of State of NY (SSNY) 02108-1512. Purpose: any lawful act. Rd., Ste. 400, Wilmington, DE 19808. Secy. of State, 401 Federal St., Ste. filed with Secy of State of NY (SSNY) on 5/21/14. Office location: NY County. Arts. of Org. filed with DE Secy. of 3, Dover, DE 19901. Purpose: Any on 06/02/2014. Office location: New SSNY designated as agent of LLC Notice of Formation of Sherwood 21 State, John G. Townsend Bldg., 401 lawful activity. York County. Princ. office of LLC: 145 upon whom process against it may Garage LLC, Art. of Org. filed Sec'y of Federal St., Ste. 4, Dover, DE 19901. East 50th Street, New York, NY 10022. be served. SSNY shall mail process State (SSNY) 1/7/14. Office location: Purpose: Any lawful activity. FREMONT BLUE EVENTS LLC, a SSNY designated as agent of LLC to: c/o B&B Supportive LLC, 419 NY County. SSNY designated as domestic LLC, filed with the SSNY on upon whom process against it may Park Avenue South, 18th Fl., NY, NY agent of LLC upon whom process Notice of Formation of Consulate 5/1/14. Office location: New York be served. SSNY shall mail process 10016. Purpose: any lawful activity. against it may be served. SSNY shall Hotel Holdings II, LLC, Art. of Org. County. SSNY is designated as agent to the LLC at the addr. of its princ. mail copy of process to 745 Fifth filed Sec'y of State (SSNY) 2/20/14. upon whom process against the LLC Office. Purpose: Any lawful activity. Notice is hereby given that a license, Ave., Ste. 1707, NY, NY 10151. Office location: NY County. SSNY may be served. SSNY shall mail process Serial #1276911, for wine and beer Purpose: any lawful activities. designated as agent of LLC upon to The LLC, 20 W. 22nd St., #807, Notice of Formation of ASCEND have been applied for by the under- whom process against it may be NY, NY 10010. General Purpose. ASSOCIATES, LLC. Arts. of Org. filed signed to sell wine and beer at retail HENDON GARDEN CENTER LLC, Arts. served. SSNY shall mail copy of with Secy. of State of NY (SSNY) on in a restaurant under the Alcoholic of Org. filed with the SSNY on process to c/o Hampshire Hotels NOTICE OF FORMATION of Semona 5/28/14. Office location: NY County. Beverage Control Law at 1817 2nd 06/06/2012. Office loc: NY County. Mgmt., 200 W. 55th St., Ste. 42, NY, NY Gems LLC. Arts of Org filed with Secy SSNY designated as agent of LLC Ave., New York, NY 10128, county of SSNY has been designated as agent 10019. Purpose: any lawful activities. of State of NY (SSNY) 5/14/14. Office upon whom process against it may New York, for on premises consump- upon whom process against the LLC location: NY Co. SSNY designated be served. SSNY shall mail process tion. Tang Xue Qin, Majiao Asia Grill may be served. SSNY shall mail Notice of Formation of Abigail Public agent upon whom process may be to: David Patrick Seklir, 54 Riverside Corp, DBA: A-Jiao Sichuan Cuisine process to: c/o Tenzer and Lunin LLP, Relations, LLC, Art. of Org. filed Sec'y served and shall mail copy of process Drive, No. 8B, NY, NY 10024. 32 East 57th St. 10th Fl., NY, NY of State (SSNY) 3/10/14. Office loca- against LLC to principal business Purpose: any lawful activity. NOTICE OF FORMATION OF ELITE 10022. Purpose: Any Lawful Purpose. tion: NY County. SSNY designated address: 257 Central Park West, #8F, JEWELRY HOUSE LLC. Articles of as agent of LLC upon whom process NY, NY 10024. Purpose: any lawful act. Notice of Qual. of CMC Real Estate Organization filed with the Secretary of Notice of Qual. of Aravt Global against it may be served. SSNY shall LLC, with a fictitious name of CMC State of NY (SSNY) on 02/03/2014. Partners LP, Auth. filed Sec'y of State mail copy of process to 11 Charlton Notice of Qual. of Valarc GP, LLC, Brickell Miami Real Estate LLC, Auth. Office location: NEW YORK County. (SSNY) 10/3/13. Office loc.: NY St., Apt. 3A, NY, NY 10014. Purpose: Auth. filed Sec'y of State (SSNY) filed Sec'y of State (SSNY) 2/25/14. SSNY has been designated as agent County. LP org. in DE 10/1/13. SSNY any lawful activities. 9/3/13. Office loc.: NY County. LLC Office loc.: NY County. LLC org. in upon whom process against it may be desig. as agent of LP upon whom org. in DE 8/15/13. SSNY desig. as FL 1/6/14. SSNY desig. as agent of served. The Post Office address to process against it may be served. Notice of Formation Everwild Media agent of LLC upon whom process LLC upon whom process against it which the SSNY shall mail a copy of SSNY shall mail copy of proc. to 645 LLC Arts. of Org. filed with SSNY against it may be served. SSNY shall may be served. SSNY shall mail any process against the LLC served Madison Ave., Ste. 610, NY, NY 3/11/2009. Off. Loc.: New York Cnty. mail copy of proc. to Att: Hari copy of proc. to Vanessa Grout, 701 upon him/her is: 7014 13TH AVENUE, 10022. DE off. addr.: CSC, 2711 SSNY designated as agent of LLC Ramanan, 900 Third Ave., Ste. 202, Brickell Ave., #2410, Miami, FL SUITE 202, BROOKLYN, NY 11228. Centerville Rd., Wilmington, DE whom process may be served. SSNY NY, NY 10022. DE off. addr.: CSC, 33131, the principal office addr. of The principal business address of the 19808. Cert. of LP on file: SSDE, shall mail process to: c/o Josh Cook, 2711 Centerville Rd., Wilmington, DE LLC. Art. of Org. on file: SSFL, PO LLC is: 10 West 47th Street, #1005. Townsend Bldg., Dover, DE 19901. 70-64 Yellowstone Blvd, Apt. 1A, 19808. Cert. of Form. on file: SSDE, Box 6327, Tallahassee, FL 32314. New York, NY 10036. Purpose: any Name/addr. of each gen. ptr. avail. at Forest Hills, NY 11375. Purpose: all Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities. lawful act or activity. SSNY. Purp.: any lawful activities. lawful activities. Purp.: any lawful activities.

28 | Crain’s New York Business | June 16, 2014 20140616-NEWS--0029-NAT-CCI-CN_-- 6/12/2014 5:23 PM Page 1

FOR THE RECORD

NYCHA Finance Department, 90 transaction value.The information was of common stock at prices ranging from Church St., sixth floor. A 5% bid bond obtained from Thomson Reuters. $40.84 to $40.99 per share, in a ABOUT THIS SECTION security is also required. To make transaction worth $10,853,673. He now FOR THE RECORD is a weekly listing of information from the public record that inquiries, contact Erneste Pierre-Louis ● CBS Corp. (CBS) directly holds 429,178 shares. can help businesspeople in the New York area find opportunities, potential at (212) 306-3609 or erneste.pierre- Leslie Moonves, director, president and [email protected]. chief executive, exercised options on ● Ralph Lauren Corp. (RL) new clients and updates on competitors. 600,000 shares of common stock at Jackwyn Nemerov, president and chief To ask questions or get more information on this section, contact Crain’s $13.09 per share between May 29 and operating officer, sold 27,067 shares of research department at [email protected]. REAL ESTATE DEALS May 30, in a transaction worth common stock at prices ranging from $7,854,000. In the same period, he sold $155.13 to $155.59 per share on June 4, Companies that would like to have details 600,000 shares of common stock at in a transaction worth $4,200,565. She Joseph V. Betro, owed $46,542.51; of their recent transactions appear in these prices ranging from $59.60 to $60.09 now directly holds 39,997 shares. NEW IN TOWN Vidyo Inc., owed $15,000; and Ciena, listings should email descriptions following per share, in a transaction worth owed $13,991.71. this format to MSingleton@crainsnewyork $35,907,120. He now directly holds ● L-3 Communications Holdings Inc. (LLL) Companies that would like to have details .com, with “Real estate transaction” in the 1,857,210 shares. Steven Kantor, president, Electronic of openings published should submit ● Jump Creatives subject line, or enter them online at Systems Group, sold 29,512 shares of descriptions following this format to 411 Fifth Ave., Manhattan crainsnewyork.com/submitadeal. Deals are Sumner Redstone, executive chairman, common stock at prices ranging from [email protected], with Filed for Chapter 7 bankruptcy listed in order of square footage. exercised options on 95,600 shares of $121.33 to $121.51 per share on June 2, “New in Town” in the subject line. protection on June 4. The filing cites common stock at $30.21 per share in a transaction worth $3,582,043. He estimated assets of $0 to $50,000 and COMMERCIAL between May 28 and June 4, in a now directly holds 28,642 shares. ● Brunswick estimated liabilities of $1,000,001 to $10 ● Troutman Sanders signed a 15-year transaction worth $2,888,076. In the 144 Decatur St., Brooklyn million. The creditors with the largest lease for 87,100 square feet at 875 Third same period, he sold 47,800 shares of John Mega, president, Microwave The Australian-style coffee shop opened unsecured claims are Juno Investment & Ave. in midtown east.The law firm will common stock at $59.84 per share, in a Group, sold 26,567 shares of common in Bedford-Stuyvesant. The breakfast Management Inc., owed $165,179.31; occupy floors 15 through 17 and relocate transaction worth $2,860,352. He now stock at prices ranging from $122.70 to menu includes huevos rancheros and egg and Juno Healthcare New Jersey Inc., from its Chrysler Building space.The directly holds 8,829,690 shares. $122.80 per share on June 4, in a sandwiches; for lunch, it features owed $36,788.22. tenant was represented by Lewis Miller transaction worth $3,260,886. He now meatball paninis, and kale, apple and and Kenneth Rapp of CBRE.The ● Broadridge Financial Solutions Inc. directly holds 12,414 shares. avocado sandwiches. ● Memorial Park Inc. landlord, Eastgate Realty, was represented (BR) 7 Memorial Park, Spring Valley, N.Y. by Diana Biasotti and Paul Glicknab of Richard Daly, director, president and ● American Express Co. (AXP) ● Union Bar & Kitchen Filed for Chapter 7 bankruptcy Jones Lang LaSalle.The asking rent was chief executive, exercised options on John Hayes, executive vice president and 300 Spring St., Manhattan protection on June 6.The filing cites in the $50s per square foot. 379,500 shares of common stock at chief marketing officer, sold 39,265 The seafood restaurant opened in estimated assets of $100,001 to $500,000 prices ranging from $13.79 to $16.55 shares of common stock at $91.16 per TriBeCa. The menu offers baked clams, and estimated liabilities of $100,001 to ● Talent Partners signed a 12-year lease per share between May 28 and May 30, share on May 29, in a transaction worth moules marinière and a grilled catch of $500,000.The creditor with the largest for 32,200 square feet at 475 Park Ave. in a transaction worth $5,757,015. In $3,579,535. He now directly holds the day, plus burgers, half-chicken and unsecured claim is American Home South in midtown east. The payroll- the same period, he sold 265,200 shares 51,467 shares. Ⅲ rack of lamb. Mortgage Service, owed $241,889.61. services company will relocate from its Flatiron offices this year to the Park ● Northern Bell Avenue South building, which is 612 Metropolitan Ave., Brooklyn GOVERNMENT CONTRACT undergoing renovation. The tenant was DEALS ROUNDUP The Southern-style restaurant opened in OPPORTUNITIES represented by Eric Ferriello and Robert Williamsburg. The menu includes hush Tunis of Colliers International. The puppies and pulled pork, as well as elk, Following are selected contract landlord, Cohen Brothers Realty Corp., TRANSACTION SIZE TARGET/SELLERS (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE bison, beef and veggie burgers. opportunities recently announced by New was represented in-house by Marc York City agencies.To learn how to sell Horowitz. The asking rent was $55 per American Realty Capital $2,446.6 Ventas Inc. SB M&A goods and services to city government, visit square foot. Healthcare Trust Inc. COMPANY MOVES www.nyc.gov/selltonyc. For a searchable (Manhattan)/not database of current procurement notices, ● Apple Tree Life Sciences signed a 10- disclosed Companies that would like to have details visit www.nyc.gov/cityrecord. Listings are year lease for 14,200 square feet at 230 Internet Brands Inc./ $1,100.0 Kohlberg Kravis Roberts & Co. FB M&A of recent moves published should submit alphabetical by category and department. Park Ave. in midtown east. The Hellman & Friedman, (Manhattan), management of JMI Equity Internet Brands Inc. descriptions following this format to pharmaceutical, medical and health care [email protected], with CONSTRUCTION SERVICES venture-capital firm will relocate from Terra-Gen Power, Alta $870.0 NRG Yield Inc. SB M&A “Company Moves” in the subject line. ● Department of Design and Construction its Princeton, N.J., location to occupy Wind facility located in Tehachapi, Calif./ Seeks competitive sealed bids by 11 a.m. the 28th floor of the 34-story building. ● Terra-Gen Power Barcade on June 24 for green infrastructure in the The tenant was represented by Ethan (Manhattan) 128 W. 24th St., Manhattan Newtown Creek area of Queens. Bid Silverstein of Cushman & Wakefield. iParadigms/Warburg $752.0 GIC Special Investments Pte. Ltd., FB M&A The Williamsburg-based bar with documents are available at The landlord, Monday Properties, was Pincus (Manhattan) Insight Venture Partners (Manhattan) video-game machines opened an www.nyc.gov/buildnyc and require a $35 represented in-house by Jordan Berger Seaton/Leeds Equity $310.0 TrueBlue Inc. SB M&A outpost in Chelsea. It has additional deposit, payable by check or money and by Frank Doyle, Jonathan Fanuzzi, Partners (Manhattan) locations in Jersey City and order to the agency.To make inquiries, Paul Glickman, David Kleiner and Philadelphia. contact Emmanuel Charles at (718) Matthew Polhemus of Jones Lang TF Financial Corp./Seidman $136.2 National Penn Bancshares Inc. SB M&A and Associates, Stilwell 391-2200 or [email protected]. LaSalle. The asking rent was in the low ● Value (Manhattan), Third Meme’s Healthy Nibbles $80s per square foot. Federal Savings Bank 707 Nostrand Ave., Brooklyn ● Department of Parks and Recreation employee stock ownership plan RETAIL The organic food and juice bar opened Seeks competitive sealed bids by 10:30 OSO BioPharmaceuticals $110.0 Albany Molecular Research Inc. SB M&A ● its second Brooklyn location, in Crown a.m. on June 24 for the construction of DuPont signed a four-year lease for Manufacturing/Altaris Heights. The vegan menu offers all-day storm-water drains on Green Street in 5,600 square feet at 49 W. 23rd St. in the Capital Partners (Manhattan) breakfast, natural-ice-cream flavors, the Bronx. Bid documents are available Flatiron district. The energy-solutions Dragonplay Ltd./Accel $100.0 Bally Technologies Inc. SB M&A salad sandwiches and freshly blended at the Olmsted Center, Room 64, company will build a third-floor Partners, Entree Capital, fruit and vegetable juices. Flushing Meadows Corona Park, showroom for its Corian Solid Surfaces Founder Collective Queens, for a $25 fee, payable by check product. Both the tenant and the (Manhattan), Velo ● Liquiteria or money order to the City of New York, landlord, Twenty Three R.P.Associates, Partners 145 Fourth Ave., Manhattan Parks and Recreation. To make were represented by Alan Bonnet and Northcreek Portfolio/ $67.1 Columbus Capital Management SB M&A The cold-pressed juice chain opened a inquiries, contact Michael Shipman at James Buslik of Adams & Co. The Westbrook Partners second East Village outpost, south of (718) 760-6705 or michael.shipman@ asking rent was $50 per square foot. (Manhattan) Union Square. It offers smoothies, parks.nyc.gov. Yext Inc./not disclosed $50.0 Insight Venture Partners (Manhattan), GCI salads, snacks and juices. ● Doughnut Plant Brooklyn signed a Institutional Venture Partners, Marker ● Triborough Bridge and Tunnel Authority lease for 900 square feet at 245 Flatbush (Manhattan), Sutter Hill Ventures Seeks competitive sealed proposals by Ave. in Park Slope.The bakery chain, with 824,624-square-foot $48.0 W.P. Carey Inc. (Manhattan) SB M&A BANKRUPTCIES 3:30 p.m. on June 26 for Sandy locations in Chelsea and the Lower East distribution facility, restoration, mitigation and Side, will occupy the space that formerly University Park, Ill./ Exeter Property Group The following listings are selected from the rehabilitation of the tunnel and housed Yummy Taco near the Barclays most recent available filings by companies Manhattan exit plaza at the Queens Center.The tenant was represented by 268,407-square-foot $44.9 G&I VII Westfork (Manhattan) SB M&A seeking bankruptcy protection in the Midtown Tunnel. Visit www.mta.info George Graf and Dan Gronich of retail plaza at 15805 to 15999 Pines Blvd., Southern and Eastern Districts of New for further information. To make Newmark Grubb Knight Frank.The Pembroke Pines, Fla./ York. Information was obtained from U.S. inquiries, contact Victoria Warren at landlord, Noam Management, was Westfork Tower Bankruptcy Court records available on (646) 252-7092 or [email protected]. represented by Dan Marks and Joey Terzi Property at 719 Seventh $41.1 SL Green Realty Corp. (Manhattan) SB M&A Public Access to Court Electronic Records. of TerraCRG. Asking rents in the area are Ave./not disclosed Listings are in alphabetical order. GOODS AND SERVICES $100 to $200 per square foot. ● Housing Authority SAVO Group Ltd./ $35.0 Goldman Sachs Private Capital Investing GCI ● not disclosed (Manhattan), SAP Venutres, Sterling Eduro Networks Inc. Seeks competitive sealed bids by 10 a.m. Partners 234 Arcadia Road, Goshen, N.Y. on June 26 for duct cleaning at various STOCK TRANSACTIONS Selected deals announced for the week ended June 5 involving companies in metro New York. Filed for Chapter 11 bankruptcy developments in the five boroughs. Bid SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing shares protection on June 9. The filing cites documents are available at Following are recent insider transactions at of a company without the participation of a financial buyer. FB M&A: Financial buyer M&A estimated assets of $1,000,001 to $10 www.nyc.gov/nychabusiness. New York’s largest publicly held companies represents a minority or majority acquisition of existing shares of a company with the participa- million and estimated liabilities of Nonelectronic bid documents are subject filed with the Securities and Exchange tion of a financial buyer. GCI: Growth capital investment represents new money invested in a $100,001 to $500,000. The creditors to a nonrefundable $25 fee, payable to Commission by executives and major company for a minority stake. source: capitaliq with the largest unsecured claims are NYCHA by check or money order at shareholders. Listings are in order of

June 16, 2014 | Crain’s New York Business | 29 20140616-NEWS--0030-NAT-CCI-CN_-- 6/13/2014 6:22 PM Page 1

Fundraising gets a welcome lift

for the American Technion Society, cluding many alumni who have niversary, fundrais- Contributions are up, said that he wasn’t surprised by the benefited from the economy. He ing has been increas- but not all nonprofits “cognitive dissonance,” because hopes they will continue to give, being since 2008, and although the improving economy cause Technion has established a the need is so great. have recovered has led to a boost in overall giving, school with Cornell University and “There is just so from recession the recovery among nonprofits is slated to open a Roosevelt Island much disparity in the RISING TIDE: hasn’t been uniform. campus in 2017. education system,” Cornell Tech’s fundraising efforts are The new university is off to a said Ms. Timmons. Tech ties benefiting from the BY THERESA AGOVINO good start. It has already received a “There are a lot of recovering economy. Blackbaud, which makes soft- $133 million donation. children who could A majority of fundraising profession- ware for nonprofits, reported that Other organizations are looking benefit from a more als in the Greater New York area pre- fundraising increased 5% last year to raise large sums of money, too. strenuous educational environment.” major donors, whom she describes dict donations to their organizations but didn’t provide a dollar figure. The survey found that 21% of re- as people who give $10,000 or more will increase this year, though less Later this month,Indiana Universi- spondents are in the middle of cap- Cultivating big donors a year. The Food Bank has been than 50% are optimistic about the ty’s Lilly Family School of Philan- ital campaigns, while another 21% The Food Bank for New York teaching them more about its work overall environment for nonprofits, thropy will release its 2014 Giving are considering such fundraisers. City is considering starting a capital through discussions and tours of its according to a new survey. USA report,which is considered the Next week,A Better Chance will campaign as well, because its fund- clients. A study of 122 nonprofit execu- industry’s benchmark.According to announce a capital campaign to raising has been improving and there Others agree that face-to-face tives surveyed by Crain’s and the the latest report, giving rose 13%, to raise $20 million to expand services are still so many people in the city go- meetings are the best way to raise Association of Fundraising $316 billion, from 2009, the low and add to its endowment. It has al- ing hungry.The city is still short 100 larger sums of money. And for all of Professionals-New York found that point of fundraising during the re- ready raised $10 million.The organ- million meals, said Alyssa Herman, the hype about social media, it 57% of fundraisers believed their cession, to 2012. ization, which helps minority stu- the Food Bank’s chief development hasn’t proved to be an especially employers would bring in more “There are still organizations out dents in grades six through 12 get officer. She said that in fiscal 2013, strong fundraising tool. Only 36% money in 2014, but that only 44% there that are struggling,” said Mr. into elite private schools, wants to the organization raised $25 million, of respondents said they were en- think the overall landscape is im- Hefter. nearly double the number of stu- up from $17 million in 2012. couraged by the amount of money proving. A majority seem to believe American Technion, which rais- dents it has enrolled, to 3,500 from Ms. Herman said that Super- raised through social media like there is a greater need for the services money for the Technion-Israel 2,000. storm Sandy and publicity about Twitter and Facebook. Still, 37% es they provide, with 66% reporting Institute of Technology, isn’t one of Sandra Timmons, the nonprof- food stamp cuts really persuaded said they were initiating social- they are expanding programming. them. Fundraising jumped 87%, to it’s president, said the organization people to open their wallets.Anoth- media campaigns this year, slightly The association’s president, $159 million,for the fiscal year end- thought it was a good time to start a er factor, she said, is that in the past more than the 31% who said they Mark Hefter, who is also the associ- ed Sept. 20, 2013. Mr. Hefter said capital campaign because A Better three years, the organization has weren’t interested in investing in ate vice president of planned giving the school has a loyal donor base,in- Chance just celebrated its 50th an- done a better job of cultivating such programs. Ⅲ Hotels dig Queens

Continued from Page 3 nounced. There are 23 properties course, they both lag far behind with 2,008 rooms and another eight Manhattan’s 86,044). The majority under construction, including two of hotels in Queens are clustered Wyndham properties and an Aloft around LaGuardia and JFK, but the by Starwood Hotels & Resorts.The significant growth is occurring out- demand is buoyed, in part, by some side the airport markets. of the large employers based in the “Queens has a huge influx of sup- neighborhood, such as JetBlue, ply,” said Jan Freitag, senior vice Citibank and MetLife, but also by president of STR. intrepid overseas travelers, many of whom are repeat visitors to the city. Steady growth “Our biggest business is coming Hotel development in the outer from the international leisure trav- boroughs overall has been growing eler who stays four days and is not steadily for at least the past five afraid of public transportation,”said SIGHT Z-ING: The Z years, in tandem with the record Jeffrey Reich-Hale, director of sales Hotel in Long Island City has a popular numbers of tourists coming to the and marketing of the Wyndham rooftop lounge with Big Apple annually.Of the 50 prop- Garden Long Island City Manhat- panoramic views of erties currently under construction tan View. Long Island City is a Manhattan.

in the city, 46% are being built out- transportation hub with multiple jennifer altman side Manhattan,with 10 in Queens, subway lines that is just one stop nine in Brooklyn,three in the Bronx from Manhattan. about Long Island City,” said Lisa 2008,a boutique property at the foot adding hotels to their landscape. A and one in Staten Island, according Still,hoteliers in Queens operate Gneo, director of sales and market- of the Queensboro Bridge. 96-room Parc Hotel opened recent- to NYC & Company, the city’s in the shadow of their hipper peers ing for the Z, which opened in 2011. Mr. Patel is adding to his water- ly in Flushing, which is mainly at- tourism bureau. in Williamsburg and downtown “Our message is that we are a better side property, building a 10-story tracting day-trippers and travelers “The hotel pipeline is not show- Brooklyn, where room rates are price point than Manhattan, proba- tower that will have 48 rooms, a from Asia, experts say. That’s re- ing any signs of slowing down,” said nearly as high as in Manhattan and bly 35% less expensive, and we are a rooftop pool, event spaces and a flected in how the hotels are market- Fred Dixon, chief executive of NYC visitors go to explore the cultural at- quick ride on the subway,”she added. third-floor garden. But he is already ed. The Parc Hotel’s front sign, for & Company. And despite all the tractions, nightclubs and restau- seeing the impact of all the hotel de- example, is prominently displayed new properties sprouting up all over rants in the neighborhood. Not Billyburg, yet velopment in the neighborhood in in English and Chinese. the city,demand has not abated.The Even boutique properties with sex Long Island City may be trying which he was an early pioneer. The airport hotel market hasn’t city’s hotels sold 29 million room appeal,like Long Island City’s Z Ho- to be Queens’ answer to Williams- He estimates that the Ravel’s av- changed much in recent years, with a nights in 2012 and 30 million last tel,which has a rooftop bar and views burg, but it has a way to go before it erage daily room rate, at $155, is few exceptions: The 350-room year, and are on track to increase by of the East River, tout their close can command Brooklyn’s room 10% lower than it was a year ago de- Crowne Plaza JFK opened earlier another million this year,Mr.Dixon proximity to Manhattan and less ex- rates and wide recognition. The av- spite occupancy rates above 90%. this year. It had originally been a said. pensive rates to draw customers. erage daily rate in Brooklyn during Similarly, Mr. Reich-Hale of Hilton before falling into disrepair.It In Long Island City, the hotel “I travel internationally to not the first four months of this year was Wyndham is worried about oversat- became a Salvation Army shelter and boom has been especially pro- only talk about the hotel, but also $153, compared with $128 in uration. “What suffers is our room most recently had been vacant for Queens, according to STR. rate, rather than our occupancy,” he seven years,according to Gene Kauf- CORRECTIONS What’s more, despite rapid resi- said. man,the architect who redesigned it. Dan Glaser is a co-founder of Imperium Capital. A photo that identified him dential development, Long Island Another stylish boutique hotel, “Business travel has resumed to in the June 9 Person of Interest was incorrect. The correct photo is at left. City still lags in amenities that the Paper Factory—in a former in- peak levels, and that is driving the The state budget’s “sweep” from MTA-dedicated funds was first proposed at would lure visitors. dustrial building—opened earlier airport hotel business,” Mr. Kauf- $40 million but was later scaled back to $30 million. This information was “There are not enough restau- this year in Long Island City and of- man said. Ⅲ misstated in the June 9 “MTA chief can’t catch a brake.” rants in Long Island City to handle fered a spacious room for as low as Vivin Williams, Bitly’s new vice president of product, is male. His gender was all the residents,” said Ravi Patel, $179 on June 14. LISTEN to a discussion at misstated in the June 9 Executive Moves. who opened the Ravel Hotel in Other areas of Queens are CrainsNewYork.com/podcasts

30 | Crain’s New York Business | June 16, 2014 : Rebuilding NY 2014

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For sponsorship information, contact Joanna Harp at (212) 210-0278 or [email protected]. 20140616-NEWS--0032-NAT-CCI-CN_-- 6/13/2014 6:42 PM Page 1

Wage hike eyed for tipped employees Chelsea

The governor has been under in- tively. The first step—assembling a versy until after the election. The flea Food-service workers, termittent pressure from worker- wage panel—has yet to happen. restaurant industry opposes an in- left out of 2013 deal, advocacy organizations to bolster State Department of Labor officials crease in base pay for tipped work- the 2013 law, which raised the min- have told advocates that they want- ers, saying it would result in layoffs market’s are on guv’s agenda imum wage to $8 this year, $8.75 ed to see how the new $8 minimum and higher prices. next year and $9 in 2016, but froze was working. But other theories On the other side, Mr. Dunlea the $5-an-hour minimum for food- have emerged to explain the delay. said his members—largely food last stand BY ERIK ENGQUIST service workers who receive tips. “They may have some various pantries and soup kitchens—believe Only if tips do not bring workers up political calculations that would raises for food-service workers would Low-wage workers who believe to the standard minimum must em- make it easier for them to do it after reduce their need for handouts. Longtime ba zaar they were left behind in the 2013 ployers make up the difference. Ad- the election,”said Mark Dunlea,ex- “The waiters and waitresses at deal to raise the state’s minimum vocates allege that many employers ecutive director of the Hunger Ac- high-end Manhattan restaurants do falls victim to area’s wage might finally be getting some don’t do so. tion Network of New York State, quite well,” he said. “But the tipped relief from Gov. Andrew Cuomo, part of the Coalition for a Real workers we work with are the guys ongoing upscale Crain’s has learned. Election seen as factor Minimum-Wage Increase. driving the bicycles. They’re at the development The state will move “in the near The advocates pushed for the bill Word from the governor’s office bottom of the food chain. An extra future” to convene a minimum- to include tipped food-service is that early summer is a better bet. buck,75 cents an hour,$30 a week,to wage board to study what raise workers, but the Legislature settled Prospective changes in wage regula- most people doesn’t seem like a lot, BY ADRIANNE PASQUARELLI tipped food-service workers should for a promise from the governor to tions could still be studied for but if you’re going to food pantries, get, an administration source said. increase their base pay administra- months, pushing back any contro- $30 a week is a lot of money.” Ⅲ After two decades of business and several last-minute reprieves, Chelsea’s Antiques Garage has fi- matter and is in contact with com- nally set a closure date. The flea Chobani preps for possible IPO pany officials.” He declined to com- market, which began in a parking ment on whether Chobani had cre- lot on West 25th Street between ated enough jobs to allow it to cash Sixth and Seventh avenues in 1993, Continued from Page 4 panies to commit to creating jobs in mer Kraft Foods factory. in on the Excelsior tax breaks. will operate its last weekend on June proof that talk of an eventual IPO is exchange for tax credits. Gov. An- But Chobani has dialed back its 28.The site will be developed into a no longer a rumor.Chobani is getting drew Cuomo justified what was 2011 commitment of creating 450 Manhattan growth hotel tower. dressed up for the public markets.” then a $16 million incentives pack- manufacturing jobs at the New Berlin Still, Chobani said it plans to file “After 20 years, we are sad to see A Chobani spokesman dis- age by touting the benefits for local facility over five years in exchange for for the credits soon. At that point, it the Garage fall to development,” missed the IPO chatter. “ ‘No com- dairy farms. $8.5 million in tax credits. Excelsior will have to reveal how many manu- said Alan Boss, known as “Lord of ment’ is even too strong,” he said. “Today’s announcement is part filings from the final fiscal quarter of facturing jobs it has created in New the Fleas”and the founder of Annex The layoffs, announced last of my administration’s commitment 2013 show that Chobani is now Berlin. The credits will be useful as Markets, the owner of Antiques week, were notable because the to invest in our state’s agricultural pledging to create 192 manufacturing the company shores up its finances, if Garage and several other bazaars. company has quietly scaled back community and bring jobs to New jobs in New Berlin in exchange for up it does decide to go public. He noted that he will still operate an job-creation commitments it made York,” Mr. Cuomo said when to $4.9 million in credits. “Those tax breaks will increase outdoor space in Chelsea at a sister when it signed onto a state tax- Chobani joined the Excelsior pro- A Chobani spokesman said that their overall margin,” Mr. Turlip site called the West 25th Street credit program in 2011. gram in July 2011. despite the company’s plan to lay off said.“People want to see a lean,prof- Market, located half a block away. The Cuomo administration has nearly 100 workers in New Berlin,it itable company coming to market, About 90% of Antiques Garage committed to Chobani’s growth Fewer jobs would fulfill its job-creation com- and those tax breaks are definitely a vendors will move to the sister mar- through the state’s Excelsior Jobs Much of that investment has had mitment under the revised filing. huge help.” ket, and several vendors will also re- Program and Empire Zone tax positive results. The company “Within the parameters of the Ex- Chobani declined to give precise locate to a flea market in Hell’s credits.Chobani was one of the final snapped up two abandoned corpo- celsior grant, Chobani has created head-count numbers at each of its Kitchen. companies to qualify for the Empire rate properties in the Southern Tier, approximately 155 jobs since 2011,” New York locations, but it said Zones program. In 2011, it signed rescuing local jobs in the process. the spokesman said. would grow both upstate and in Hotel project on to Excelsior,which requires com- Chobani’s Norwich headquarters A spokesman for the Empire Manhattan.“We’re deeply commit- Issues first arose for Antiques reuses a former Procter & Gamble State Development Corp., which ted to New York,” the company Garage back in 2008,when the mar- LISTEN to a discussion at CrainsNewYork.com/podcasts R&D facility; its production hub in oversees the tax-break program,said spokesman said. “It’s the center of ket was nearly pushed out of its long- nearby New Berlin was once a for- it “has been closely monitoring the gravity for Chobani.” Ⅲ time space by rising rents and the changing Chelsea neighborhood.At the time, the area was just starting to veloper sold 9% income-tax credits see big-name retailers such as ‘Affordable’ housing at $530,000 to generate $29.7 million for the David’s Bridal set up shop. project. Yet the market was able to stay on at its site on a month-to-month Continued from Page 4 THE NEW NEIGHBOR Scarce resource basis as Extell Development, the ument also showed that the cost per in Harlem’s Sugar Hill Some affordable-housing insid- owner of the parking-lot property, unit of mixed-income and moder- ers still wonder why the developers faced financial problems. Last year, ate- to middle-income projects was got all-too-scarce tax credits at the Extell, which was in danger of fore- about $100,000 lower. expense of other projects that ad- closure on the site, sold the proper- hered to widely accepted cost ty for a reported $67.5 million to Big donation norms. hotel developer John Lam.Mr.Lam William Traylor of Richmond The city housing agency argues plans to spend $300 million to erect Housing Resources, which helped it was a case of either doing that or a 270,000-square-foot hotel tower put together the sale of tax credits throwing millions more of its own at the space. used to fund Sugar Hill, noted that dollars into the project. Chelsea has also seen the recent A spokesman for Mr. de Blasio arrival of popular grocer Fairway, noted that last week’s tour was sim- and in 2017, high-end department The city blames ply to celebrate a building that the store Barneys will open in the space community had been eagerly previously occupied by Loeh- much of the awaiting. mann’s. Developer Broadway Housing high cost on site Communities received 50,000 ap- ‘Trendy’ is in plications for the apartments, 70% According to brokers,retail rents conditions of which will be affordable for along West 25th Street currently

buck ennis households making 50% or less of range from $75 to $90 a square foot. area median income, which is “This whole area is rapidly “The subsidy here is no higher early-education center.” $42,950 for a family of four.A fam- changing,”said Aaron Gavios,chief than any other city project,”said Mr. The city itself blames much of ily of six making up to $79,700 can executive of Square Foot Realty, Traylor, who also disputed the per- the high cost of the Sugar Hill proj- rent a three-bedroom for as low as which markets space in Chelsea and the project was driven by a substan- unit cost number. “But no other ect on site conditions,including soil $1,588. Ⅲ Hell’s Kitchen. “Schlock is on the tial donation from private philan- affordable-housing project lever- contamination and the steep grade way out, and the trendy clothing thropy, which was possible only be- aged this kind of private money,pre- of the parcel. LISTEN to a discussion at boutique and restaurant scene is on cause of the city’s investment. cisely because of the museum and With the city’s blessing, the de- CrainsNewYork.com/podcasts the way in.” Ⅲ

32 | Crain’s New York Business | June 16, 2014 20140616-NEWS--0033-NAT-CCI-CN_-- 6/12/2014 6:43 PM Page 1

HELLUVA TOWN INSIDE Source Lunch New ingredients Engineering Facebook’s Jean Denoyer, the prolific growth in NYC PAGE 34 restaurateur who owns some 10 eateries, including Orsay and Out and About Brasserie Ruhlmann in New York, says reopening La Goulue has The River to River Festival become his “obsession.”The rolls in PAGE 35 grande dame lost its lease five years ago after a 37-year run. Mr. Denoyer, who secured a new space at 29 E. 61st St., plans to re-create the ambience, using the same wood paneling, fixtures and furniture that have been in storage all this time. When it opens in early 2015, La Goulue will have 170 seats, or 54 more than it had.The Confessions of a restaurateur is not concerned that haute French cuisine has lost some cachet since its glory days in the last century. “We will have the building-pass hoarder same chef [Antoine Camin] who earned La Goulue a Michelin star,” Mr. Denoyer said. In my most cynical moments, I imagine At another of Mr. Denoyer’s Osama bin Laden was in the security business aging eateries, 20- year-old Le Colonial,

fernando alonso a new cook is livening up the menu. Chef Ron Wing Wee Hsu, (pictured) formerly a senior sous chef at Le Bernardin, has raised the culinary bar by reinterpreting some traditional BADGES OF PRIDE: Allan Ripp’s building-pass collection, Vietnamese dishes and adding the photocopied and turned into a restaurant’s first prix fixe menu— sport coat of sorts, bewilders and five courses for $80 ($125 with amuses. He has many meetings in wine pairings). Class A buildings. He just wishes The changes are starting to getting in were easier. pay off, with sales in May 20% greater than the previous May, said co-owner Jean Goutal. —lisa fickenscher CyberBroadway

Poor ticket sales shuttered Bridges of Madison County earlier this year, but Jason Robert Brown’s score and orchestrations still won two Tonys. Now the cast album is one of the top sellers on BwayTunes.com. Launched right before the Tonys, the site is trying to recapture the appeal of brick-and- mortar stores like the famed Colony Music, which closed in 2012, according to Jim Russek,a Broadway theater advertising executive, who started the site with Erik Hartog, a friend and entrepreneur. Like Colony, it sells a wide collection of albums— there are six versions of The King and I, including one from the movie. Like iTunes, the site sells only digital downloads. But what really gives it an edge is its search capability, Mr. Russek said. Shoppers can use a variety of buck ennis variables to browse, including year, composer and artist, even BY ALLAN RIPP SAFETY FIRST lighting designer. “Let’s say 50 years ago, your Aunt Tess was a lighting designer inally emptying my winter jacket before taking it to the cleaners, I pulled out a on a show but you don’t remember wad of mashed-up visitor passes—those bar-coded badges needed to gain 349 which one. Put in her name,” said NUMBER of designated Mr. Russek.This fall, he hopes to entry to the upper floors of Class A office buildings in New York. ¶ An idea Class A office buildings in provide theatergoers with codes to comes to me. I go to my closet.There they are: in the pocket of a rolled-up Manhattan download free songs from new shirt, in several pairs of pants draped over hangers, in the foyer change bowl, shows, which could help boost ticket sales. Aside from selling even one in my wallet. ¶ I line them up on my dining-room table, briefly music, the site plans to earn money impressed at all the classy addresses I’ve gone for client meetings this past year: 105,090 by promoting shows. NUMBER of security —theresa agovino 1 Chase Manhattan Plaza, the McGraw-Hill Building, 75 Rockefeller Center, guards in New York state, the iconic 30 Rock, 485 Lex, 1675 Broadway, 1 Battery Plaza, 565 Fifth. ¶ Less impressive are the as of May 2013 photos printed on them. Grainy, unfocused, almost unidentifiable, these mug shots distort my face Flike the reflection in a spoon, making my forehead a vast shiny expanse.They are the opposite of selfies.They are repulselfies. ¶ Still, I wish I’d kept the many hundreds of visitor passes I’ve been issued since 9/11, the line dividing when you could simply walk into virtually any building in New Sources: NYC Department of Finance, York and step into the elevator, from when you couldn’t. See HOARDER on Page 34 U.S. Bureau of Labor Statistics bwaytunes.com

June 16, 2014 | Crain’s New York Business | 33 20140616-NEWS--0034-NAT-CCI-CN_-- 6/12/2014 5:24 PM Page 1

SOURCE LUNCH: Building-pass hoarder SERKAN PIANTINO by Matthew Flamm Continued from Page 33 Baldwin or Iris Apfel, the 90- prefer to house their staffs in the Now, of course, add 10 minutes something designer/partygoer in commercial equivalent of a gated so you can queue up at the front her giant owl-eyed glasses? I wish community. desk, present your driver’s license some enterprising landlord would Still, couldn’t someone create a for a terror-watch check, wait for hire Bill Cunningham or Annie universal visitor badge that vets Face of Facebook in the uniformed guy to rifle through Leibovitz to snap visitor passes for people against the same central his directory and call whomever a day. I picture a giant collage of database the government uses? you’re meeting upstairs (“Yes, I guest passes: The Arc of Homeland Even the TSA now has a premium NYC loves the chaos have a Mr. Pipp here to see you”), Defense on the Citizenry.Who service that lets prequalified fliers and have your horrific portrait tak- would dare not put their best face keep their shoes on and laptops en.Then fiddle with your badge to forward? Or shove such a keepsake packed. Maybe a biometric or unlock the electric-eye turnstile so into their Patagonia jacket to disin- facial-recognition building pass is erkan Piantino joined Face- group, and he can walk back and you can then step into the elevator. tegrate? not so far off and I’ll be able to book in 2007, a few years af- forth from his office to our office. It More often than not, a building It’s impossible to know whether breeze past the less fortunate types ter graduating with a bache- would have been a lot harder to have worker has to dip his or her master the cameras and badges have pre- stacked up at the lobby desk. lor’s degree in computer persuaded someone like Yann to join badge into the turnstile to let you Many non-Class A buildings science from Carnegie Mel- Facebook without a presence here past. still go the low-rent route, with a Slon University, and after a stint at a and a space for his team. What if Annie sign-in sheet and a bored rent-a- New York financial firm. Moving to Fisheye lenses guard on hand playing Candy Menlo Park, Calif., he played a key Does Facebook focus on different things In the early days after 9/11,I re- Leibovitz Crush. My own office on Broad- role in developing Facebook’s News in New York than in California? call staring proudly into the camera way and 57th Street, which has a Feed and Timeline features. We’ve invested pretty heavily here in like a patriot, declaring my support snapped visitor lobby plaque with the Pledge of Al- In 2010, Mr. Piantino, 31, re- our utility and location products,like for whatever inconveniences were legiance on it, employs a cracker- turned to New York to head a new search and check-ins. It’s so much deemed necessary to keep America pics for a day? jack deskman named Rico who has engineering team in Facebook’s of- clearer how valuable it is to have safe. These days, I shut my eyes, actually stopped me from entering fice here. Recently, the company’s products that understand where you look at my phone or just scowl. (though that was for trying to bring 400-plus local employees left their are and the places that you’ve been Don’t you people have my picture my dog into the building). I worry cramped quarters in midtown for when you’re using Facebook on a from the 45 times I’ve been here be- about security upgrades and badges 160,000 square feet at 770 Broad- mobile device in Manhattan. fore? vented a single assault. A disgrun- now that our neighborhood below way. Mr. Piantino was part of the In my most cynical moments, I tled employee with a valid building Columbus Circle has been dubbed Crain’s 40 Under 40 Class of 2012. You have more than 100 engineers here imagine that Osama bin Laden was pass could just as easily go on a ram- Billionaires’ Row. and are hiring more. How tough is it in secretly in the security business and page. Woe to the rest of us if that I was in Toronto last year and was What difference does it make for Face- New York to find all the talent you need? needed something big to drum up happened. Out would come the pleasantly shocked to find bank book to have this big new Manhattan Competition for the best software sales. Airports were already outfit- metal detectors, shoe removal, branches lacking the four-inch bul- headquarters? engineers is high everywhere. And ted with scanners and guards, but pocket-emptying and body-cavity letproof glass that separates tellers First and foremost, we have a bigger you increasingly don’t have to speak office buildings—that was for the searches that would forever alter from customers. I entered several footprint, with wide-open to them about compensa- future.Today, there probably isn’t a the timetable of a business appoint- large office lobbies free of security floors where we can have WHERE tion and perks but about single major property in New York, ment. Got a 3 o’clock at the checkpoints. There was a giant di- lots of people collaborat- what they want to do with Washington, Chicago, Los Ange- MetLife Building? Remember to rectory, you looked up the business ing. We’ll also have a big THEY their lives.That’s where we les or Houston that doesn’t have an arrive an hour early for a security you were seeing, and you went and space for a new cafeteria DINED have an advantage. What electronically fortified defense sys- check, and please deposit all water saw them. Not a turnstile in sight. where, once it’s ready, we FACEBOOK’S Facebook does is very hu- tem and an army of badge issuers in bottles and lattes before entering It made me nostalgic for the can hold events on a pretty CAFETERIA man, and we have a bunch ill-fitting blazers. Some, like the the line. pre-9/11 days, when we were a bit regular basis. One of our 770 Broadway of products that do differ- McGraw-Hill Building, have an Even absent an attack, building more free and a lot more innocent. ambitions here is to [pro- AMBIENCE: ent things at a pretty large X-ray machine and conveyor belt owners are unlikely to give up their And yet,waiting for the elevator vide] a comfortable space Makeshift and scale around the world, so industrial; for your bags, just like LaGuardia. fortress-like lobby security. Never to arrive and seeing how easily I where we can talk about the permanent it’s easy to come here and I wonder: Does Donald Trump, mind that most of us threw out our could traipse in and go wherever, I technology we’re building, cafeteria is under find something you’re ex- Bill de Blasio or Michael bottles of anthrax-fighting Cipro worried: What if I were that guy, other people can talk about construction cited to do. Bloomberg need a badge when years ago.The liability risk without the suicidal jihadist or recently what they’re building, and WHAT THEY ATE: they arrive? How would the cam- such a system is too great. And fired manager, here to wreak havoc we can help the tech com- Ⅲ Sushi, steamed Facebook also launches a lot eras warp their famous faces, not to most major companies, especially on the 32nd floor? Doesn’t socie- munity here do what it’s broccoli, steamed of products that don’t catch Brussels sprouts, on. Is that discouraging? mention those of Kelly Ripa, Alec those occupying multiple floors, ty—and the building owner—have unusually good at, which is Japanese an obligation to stop me? feel like one team. chicken, hanger I guess it could be.The flip steak with side is we try lots of things, Targets for mayhem Do you really want to tell your chimichurri sauce we move quickly,and we set SECURITY AND THE CITY My post-9/11 mind, even after competitors what you’re Ⅲ Jasmine green ambitious goals that have a more than a dozen years, hasn’t building? tea, water high probability of failure. THE SEPT. 11, 2001, terror attacks led commercial landlords to beef up learned to let its guard down. I’ve We open-source our tech- PRICE: No charge There is certainly this un- security, and the growth in Class A buildings has only heightened demand. become conditioned to the reality nology—just put all the derlying level of chaos, but “Security has always been in everyone’s mind, but it has been that office towers—and their in- code out there so other people can I like to think of it as energy. highlighted since 9/11,” said Timothy Horner, managing director at Kroll’s habitants—are targets for mayhem. work on it, and we benefit greatly Business Intelligence and Investigations. But am I really safer? from that. But it’s also a strategic How did you end up at Facebook? The New York City Department of Finance puts the number of Manhattan New York’s most dangerous jobs thing: Great things tend to happen I was working in finance, and I had a Class A buildings, loosely defined as office towers with above-average occur outside the office: police of- when great people are in close prox- friend who joined Facebook. I went rents, at 349. That represents about half the square footage of office ficers, firemen, construction labor- imity. We want to invest in our own on the career site and did a puzzle— buildings in the borough, numbers that are growing with the addition of ers, window washers. Labor De- growth, and we’re happy to see the we used to have engineering puzzles buildings downtown and at Hudson Yards, and possibly in midtown east if partment statistics show that the growth of the technology sector and you would submit your solution. Mayor Bill de Blasio approves new upzoning for the neighborhood. most at-risk indoor workers may around us. A great accelerator of that I wasn’t looking to leave New York. I The security industry itself has many facets: security-guard companies, actually be those in retail, who face is to have this sense of connectedness did eventually, but I had to first run firms that provide turnstiles, bollards and other infrastructure, as well as threats from robbery and other vi- and serendipity. the marathon and finish out my engineering and design consultants who go to great lengths to keep the olent acts. And yet, anyone can Yankees tickets. You prefer being downtown? bad guys out without making it too burdensome on everyone else. walk into Saks or J.Crew. Do you still get to run marathons and go The number of security guards in the state, 105,090, is second in the I can understand why every cas- This neighborhood has a lot of oth- to Yankees games? nation only to California, according to the Bureau of Labor Statistics. More tle needs a moat, courthouses in- er people working in technology and cluded. But maybe all the security has universities close by. One of the I [could] “get to” run marathons, but than 81,000 are in the metro area, and they make an average of $15.18 an apparatus at Class A office build- people we get to work with is Yann I don’t know that I’m in shape to. I hour. In Mr. Horner’s opinion, cooperation between government and ings is just a show and the vulnera- LeCun; he’s a professor at NYU and still get to go to Yankees games; I’m industry has improved since 9/11. He thinks it will continue growing in the bility—and the security—are just a he runs our artificial-intelligence physically capable of that. Ⅲ future. “I don’t see any reason why it would stop,” he said. mirage. I just wish someone would The biggest challenge is being able to provide enough security without fix it so that you could go back to ar- overly affecting people’s lives. “We don’t want to impact them to the riving at 2 p.m.for a 2 p.m.meeting. degree where they can’t live or they can’t work, or even go to school,” he INSIDE TIP: An engineer will make you a cup of said. —VALENTINA CORDERO Allan Ripp runs a press-relations firm joe in the coffee ‘lab’ on the eighth floor. in New York City.

34 | Crain’s New York Business | June 16, 2014 20140616-NEWS--0035-NAT-CCI-CN_-- 6/13/2014 3:17 PM Page 1

OUT AND SNAPS City Parks Foundation rakes in record green ABOUT by Ali Elkin and Theresa Agovino

CULTURE FIX CAREER BUILDER WEDNESDAY, JUNE 18, TUESDAY, JUNE 17 THROUGH SUNDAY, JUNE 29 Crain’s will hold its REAL ESTATE BAMCINEMAFEST will present the premieres of CONFERENCE at the JW Marriott Richard Linklater’s anticipated film Boyhood Essex House at 160 Central Park and the comedy They Came Together, among South. The event will include a others, and will feature a free outdoor screening keynote address from Alicia Glen, of three documentaries by Les Blank, including deputy mayor for housing and Garlic Is as Good as Ten Mothers, at Brooklyn economic development, as well as Bridge Park.Tickets start at $15. For more panel discussions on the battle for information and to buy tickets, visit corporate office users and other www.bam.org/bamcinemafest. topics. The conference begins at 8 a.m. with a networking breakfast and runs until 12 noon. Individual don pollard don sylvester zawadzki tickets cost $300. Registration KATE MARA and TIMOTHY ROONEY at a benefit for the DAVID MOORE, DAVID BARSE, ANDREW TISCH and ALISON TOCCI at the City Parks is available online at Catholic Youth Organization on June 5. The fete raised Foundation gala on June 3. The event raised more than $1 million, a record for the www.crainsnewyork.com more than $600,000. organization, which provides programming for 750 city parks. /events-realestate2014.

WEDNESDAY, JUNE 18 The New York Public Library’s Science Industry and Business THURSDAY, JUNE 19 Library will hold a workshop The Apollo Theater and BMI will hold a called NETWORK YOUR WAY INTO A Latin edition of HOW I WROTE THAT SONG, a JOB, which will discuss techniques panel that offers insights into the making of hit for building confidence in songs. The panel includes Latin Grammy networking interactions. The winners Alcover & Xtassy and will start at 6:30 workshop will run from 6 p.m. p.m. at the Apollo Theater, 253 W. 125th St. until 7:30 p.m. The event is free. The event is free, but registration is The library is at 188 Madison recommended. Online registration is available Ave. For more information, visit at www.apollotheater.org. www.nypl.org/locations/sibl.

DON’T MISS RIVER TO RIVER mcmullan.com clint spaulding/patrick

THURSDAY, JUNE 19, DOMINIC CHIANESE, VICTOR GARBER, JASON DANIELEY, MARIN MAZZIE, LOU- mcmullan.com clint spaulding/patrick ELLEN BARKAN DAVID HYDE PIERCE THROUGH SUNDAY, JUNE 29 and at the annual Forget-Me-Not gala hosted MARIAH CAREY and JENNY MORGENTHAU at the by the New York City chapter of the Alzheimer’s Association. The June 2 event took in May 29 gala for the Fresh Air Fund. The benefit raised The Lower Manhattan Cultural Council will host the $1.2 million. $1.5 million. RIVER TO RIVER FESTIVAL, 11 days of arts events, with acts such as the Trisha Brown Dance Company, flutist Claire Chase and string quartet Ethel performing. Some of the Snaps CrainsNewYork.com/galleries. events require registration, though all of them are free. See more of this week’s online at For more information, visit www.lmcc.net. buck ennis

OPENING FUNDRAISERS FRIDAY, JUNE 20, WEDNESDAY, JUNE 18 THROUGH SUNDAY, JANUARY 11, 2015 The Asia Foundation will hold the the The Morgan Library and Museum LOTUS LEADERSHIP AWARDS GALA at 583 will show A CERTAIN SLANT OF LIGHT: Park Ave.The event celebrates the SPENCER FINCH AT THE MORGAN.The achievements of individuals who have exhibit is a site-specific installation, affected women’s lives and communities in inspired by the Asia. will start at 6:30 p.m. and will run until library’s 9:30 p.m.Tickets start at $1,000. Guests collection of under 40 can buy tickets for $750.Tables medieval books of start at $10,000. For more information, visit hours. The artist www.asiafoundation.org/ will color the howyoucanhelp/lotusregistration.php. windows of the library’s Gilbert SATURDAY, JUNE 21 Court and will The Queens Council on the Arts will hold hang other pieces the QCA BLOCK PARTY in the back lot of the of glass to work Kaufman Astoria Studios, at 36th Street with the sun like a calendar. The and 35th Avenue.The event is a fundraiser museum, at 225 Madison Ave. for the High School to Art School Portfolio at East 36th Street, is open daily, Program, which readies high-school except for Monday. Admission is students for the rigors of art school.Tickets $18 for adults, and $12 for children, cost $35.The event will go from 4 p.m. until seniors and students. For more 10 p.m. and will include screenings and information on the exhibition, visit activities. For more information, visit www.themorgan.org. www.queenscouncilarts.com.

MARK YOUR CALENDAR… SUNDAY, JULY 20 The BROOKLYN BRIDGE SWIM will allow swimmers to cross the East River between Brooklyn and Manhattan in the shadow of the bridge. Registration is still open. The event will also include a Battle of the Bridge, during which swimmers from Brooklyn and Manhattan will face off to earn a trophy for the winning borough. The race starts at 11:15 a.m. The registration fee is $125 until June 30. It will go up to $135 on July 16. For more information,

visit www.nycswim.org. buck ennis

June 16, 2014 | Crain’s New York Business | 35 At Citi®, our experienced bankers have been helping companies thrive for 200 years. By combining our expertise in international business with our U.S. and global resources, we can help your business reach new customers in markets around the world.

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