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nb49p01_elec_rev.qxp 12/5/2007 12:06 PM Page 1 TOP STORIES REPORT Baruch challenges REAL ESTATE NYU’s hold on real Architects turn into developers; top estate education property managers PAGE 2 ® and more Panel set to make PAGE 21 big changes in congestion plan VOL. XXIII, NO. 49 WWW.CRAINSNEWYORK.COM DECEMBER 3-9, 2007 PRICE: $3.00 PAGE 3 Contract’s up for a popular Lite-FM Demolition DJ. Will she stay or will she go? misses NEW YORK, NEW YORK, P. 6 Steve Jobs’ iTunes deadline has some record executives singin’ Work on Deutsche the blues Bank building VALERIE BL0CK, PAGE 15 remains stalled Obama’s challenge BY THERESA AGOVINO to Hillary in New York; hybrid taxis a government agency failed to ELIZABETH DUNLAP meet its goal to restart the demoli- are safer, too (left), a Godiva tion of the former Deutsche Bank THE INSIDER, PAGE 18 Chocolatier vice Building last month and refuses to president, served set a firm target for resuming the customers last week. work. BUSINESS LIVES On Friday, Lower Manhattan Development Corp. Chairman 10 NIFTY buck ennis Avi Schick would say only that he NEWBIES HOLIDAY SHOPPING is “measuring the start in weeks.” 2007 restaurant He told a Crain’s New York Busi- arrivals offer ness breakfast forum in October top-notch fare that he hoped work would resume at affordable in early November. He refused to prices CEOs’ personal touch detail reasons for missing the start PAGE 39 date, saying the situation was Not Jim McCann.This Christ- on deck,” says Mr. McCann, who “complicated” and “things took a Execs take to the mas eve, he will be climbing into expects his family members to en- little more time.” sales floor, helping his four-wheel-drive SUV to de- list. “If you want to get invited to Dismantling was halted in Au- liver more than 45 floral arrange- our house for Christmas, you bet- gust after two firefighters died hard-pressed troops ments in the New York area for ter be making deliveries the week fighting a blaze in the building that and their images other people’s tables. before.” was severely damaged in the Sept. Mr. McCann isn’t the typical Such dedication sounds like a 11 terrorist attacks. Numerous AT DEADLINE deliveryman. He’s the founder and page out of a mom-and-pop-shop safety violations at the building,in- BY ELISABETH BUTLER CORDOVA chief executive of 1-800- playbook,but CEOs and other top cluding a broken standpipe that MOVING TO RECOVER FROM THE Flowers.com Inc., a $921 million managers at dozens of the city’s re- was supposed to bring water to BROADWAY STRIKE, producers most new yorkers reserve the company,and he has made distrib- tail establishments—from Steve & firefighters, allowed the blaze to have scheduled five new play night before Christmas for catch- uting bouquets during the Decem- Barry’s to Saks Fifth Avenue— rage uncontrollably. openings in the next two ing up with relatives, tucking into ber rush a tradition for the compa- quietly pitch in during the holiday Various factors stand in the way weeks, leaving little time to a holiday feast or opening gifts ny’s brass. season. Executives station them- of restarting the demolition,sources create independent buzz for early. “At holiday time, it’s all hands See CEOs on Page 8 See BUILDING on Page 8 each show. Arts editors have already warned producers that because of the tight schedule, they won’t be able to run feature stories on productions Low-risk muni bonds Street’s latest crisis like The Seafarer or August: Osage County, meaning the only press these plays will get Advisors. “I’ve been in the muni will be critical reviews. Issues grind to halt as housing decline market 15 years and have never DELAYED DEALS For more on this story, go to rattles investors; rates jump, layoffs start seen anything like this.” www.crainsnewyork.com. The muni market’s problems, Since mid-November,the nor- like those plaguing much of Wall $1B BIG LOSSES ON WALL STREET BY AARON ELSTEIN mally placid waters of the $2.5 Street these days,stem largely from Chicago’s O’Hare AND FEARS OF A RECESSION are trillion market through which the popping of the housing bubble. International Airport putting a damper on holiday in the past three weeks,the cri- states and cities raise money have That’s threatening two major parties in New York. Both the sis that’s enveloped a series of Wall been severely roiled. Nearly $3 sources of government revenues— Backal Hospitality Group, Street’s business lines has finally billion worth of bond issues de- property tax collections and real es- $900M See AT DEADLINE on Page 2 reached the most stable of them all: signed to fund everything from tate transfer taxes—that are used to Commonwealth of Puerto Rico the municipal bond market. runways at Chicago’s O’Hare In- pay bondholders. Compounding ternational Airport to police de- matters, investor confidence has $600M partments in Puerto Rico have been seriously undermined by wor- 49 Miami-Dade County been postponed. Overall, new is- ries over the health of a handful of 5 sue volume tumbled nearly 50% companies that guarantee munis, last month, according to Thom- and which face crippling losses re- $250M ELECTRONIC EDITION son Financial. lated to subprime mortgages. Westlake Chemical/ “The market is reeling,” says Last Thursday, further signs of State of Louisiana Matt Fabian, managing director at difficulties in the world of public Source: Bloomberg NEWSPAPER research firm Municipal Market See MUNI on Page 10 71486 01068 0 CNYB 12-03-07 A 2,3 11/30/2007 7:57 PM Page 1 AT DEADLINE Continued from Page 1 subprime mortgage exposure in which caters events at the New York.The Fed plans to Mandarin Oriental Hotel and issue monthly reports to help venues owned by the Cipriani community groups and family, and Tavern on the Green policymakers understand, report fewer scheduled events monitor and address conditions this season. Other experts say related to delinquency and the number of people being foreclosure in the subprime invited to events has dropped mortgage market. and that companies are reducing the amounts they will spend per CARTRIDGE WORLD USA IS person. For more on this story, SETTING ITS SIGHTS on go to www.crainsnewyork.com. Manhattan. Gregory Carafello received the master franchise WNBC’S BOLD GAMBLE ON A 7 rights to New York City late last P.M. LOCAL NEWSCAST and a month and plans to open about new early-evening lineup are 20 stores in Manhattan next failing to improve ratings. The year. About 40 more stores will ratings for follow by 2012.The single New York Cartridge World store that Nightly currently operates in Manhattan News fell offers guaranteed ink-cartridge 39% in the refills for fax machines, printers RUI YAO, a professor at November and small copiers at about 40% Baruch’s Zicklin School sweeps to 1.1 less than the price of new of Business, says that demand for advanced among adults cartridges. Mr. Carafello’s plans training in real estate 25 to 54 years old, according to coincide with an expansion push has been very high. Nielsen.The station hasn’t fared from the company’s new owner, any better with other changes it Sydney, Australia-based buck ennis made in early September. Wolseley Private Equity. Entertainment show Extra, which replaced Live at Five at 5 THE FEDERAL COMMUNICATIONS p.m., posted a 0.5 rating, a 64% COMMISSION is expected to rule plunge from last year.The 5:30 by Wednesday on a request from Real estate investment p.m. and 6 p.m. newscasts were Verizon Communications to set also down double digits. A aside price caps on its sale of WNBC spokeswoman says the wholesale access lines. Smaller station is confident the providers such as XO Baruch takes on NYU with new master’s program programs will grow. Communications and Covad Communications, which offer BY SAMANTHA MARSHALL MOUNTING DELINQUENCIES IN telecom services to business THE CITY’S subprime mortgage customers in six cities including baruch college is moving in on new york university’s territory. market point toward more New York, may see the cost of foreclosures down the line, leasing Verizon’s network The business school will debut its new master of science degree in real estate next fall, according to data released facilities more than double.The competing head-on with NYU’s program. Friday by the Federal Reserve higher costs could force these But it will cost a whole lot less. Bank of New York.The Fed firms to either exit the business says 21% of adjustable subprime or increase customer prices. If NYU’s degree costs about $42,000 and takes four semesters and 42 credits to complete. loans and 10% of fixed-rate the FCC does not act by Baruch’s program will cost $6,400 to $8,100 for New York state residents, and will take just two loans are delinquent.The report Wednesday, the caps will be to three semesters and 30 credits to complete.The Baruch classes are taught mainly by full- is the Fed’s first look at removed. I time faculty, while NYU’s program mostly uses adjunct professors. Baruch says it is answering a growing demand from professionals looking for high-level technical and analytical jobs in real estate.The college expects much of the enrollment to come THIS WEEK IN CRAIN’S See BARUCH on Page 9 IN THE MARKETS ---------------------------4 VALERIE BLOCK ---------------------------15 WEEK IN REVIEW -----------------------16 CNNMoney.com betting on v THE INSIDER------------------------------------18 upside-down by TiVo, SMALL BUSINESS ------------------- 19 Original reports CNNMoney’s efforts could REPORT: REAL ESTATE ------- 21 expected to draw attract a range of advertisers willing to pay a premium to 41 DEALS--------------------------------------------------38 ads, increase hits; run spots on the site.