The Most Thankless CEO Gig in NY

20121112-NEWS--0001-NAT-CCI-CN_-- 11/9/20127:22PMPage1

/ hns cuiiigmp n oniga ebad,there on is a chart maps scrutinizing and pounding at keyboards, phones, withemployees inaroom stocked working the ters nearUnionSquare, That’s onthetopfloorofConsolidatedEdisonInc.’s because headquar- measurecan how unpopularheisatanymomentwithexactingprecision. withkeepingNew themancharged York’s Burke, powerKevin flowing, ELSTEIN BY AARON bryan smith zumapress.com VOL. XXVIII,NO.46 NEWSPAPER Con Ed you run when relative Power. It’s all in NY CEO gig thankless most The ELECTRONIC EDITION CRAIN’S WWW.CRAINSNEWYORK.COM E OKBUSINESS YORK NEW u sM.Bregacda h al hewasalready foranother bracing Burke glancedatthewall, But asMr. ConEdcustomers hadlostpower earlier.whopping 1million ninedays executive. the 61-year-oldchief said shows how chart manypeopleare mad,” “That readthe wall 67,000. thenumberon oflastweek, Bythe middle through. stormed since Sandy showinga wall how haven’t manycustomersstill restored hadelectricity H LIST THE irrelevant brokers How Obamacarecould makeinsurance REPORT In some ways, the number was impressively small, considering thata considering small, thenumberwasimpressively In someways, Largest health insurers insurers health Largest HEALTH CARE Page 13 ® IN THESPOTLIGHT: Kevin Burke Chief Executive Consolidated Edison NOVEMBER 12-18, 2012 PRICE:$3.00 See THANKLESSonPage23 Page 16 PAGE 11 Sandy’s unlikely hero opines on Superstorm GREG DAVID FOR MAYOR? JOE LHOTA cuts andtaxhikeswouldmakethatim- ofspending punch Theone-two tal. senttothecapi- dollar cents forevery Yorkers getabout79 services.New eral of taxesandthefundsreturned asfed- send earners Washington intheform its high of the ance money in terms 2. Jan. ing cutssettotakeeffect taxhikesandspend- nation offederal combi- cliff—that approaching fiscal Congress failstoavoidthefast- faster thantherest ofthenation if New York harderand wouldfall City BY ANNIEKARNI over city shadow casts dark cliff Fiscal return tothecircus-like atmosphere a businessleadersfear lastweek, ries withelectionvicto- edge intheSenate Cuomo’s partner. close wasMr. majority Senate Republican Thedisciplined landmark legislation. andother same-sexmarriage ethics bill, an income-taxbrackets, new cap, ty-tax spending practicesandpassedaproper- legislative leadersrestructured thestate’s Cuomoand Andrew Gov. dysfunction, offitsreputation for Shrugging work. Albanyseemed to For twoyears, abrief AND CHRISBRAGG BY ANDREWJ.HAWKINS Albany dysfunction trigger concernsof Democratic victories business irks shift Senate NY THE INSIDER than otherplaces would behitharder over, NewYork If thenationgoes The city haslongsuffered animbal- The city But with Democrats gainingan But withDemocrats e ICLCLIFFonPage24 See FISCAL See STATE onPage6 SENATE 20121112-NEWS--0002-NAT-CCI-CN_-- 11/9/2012 7:41 PM Page 1

STATS AND THE CITY

ELECTION DAY SNAPSHOT In between ravaging coastal storms, New Yorkers queued up all across the city to vote in what had promised to be one of the closest elections in years. FYICRAINSNEWYORK.COM 2.1M NYC residents who voted on Election Day, down 19% from 2008, according to early counts Wall Street faces the sour 1.7M post-election music NYC voters who cast their ballots for President Barack Obama, about 81% all Street firms didn’t have to wait long for a sense of how painful four more years of 91.2% President Barack Obama might be for Portion of Bronx voters who backed Mr. Obama, W them.The morning after the election, investors saw the highest percentage of any borough the handwriting on the wall and dumped shares of Goldman Sachs, Morgan Stanley, Bank of America, 377K JPMorgan Chase and other big banks, pummeling newsbloomberg NYC residents who voted for former Massachusetts Gov. Mitt Romney, about 18% their prices downward by 6% or more on the day—as the Dow dropped a relatively modest 2.4%. The reasons for the hit are myriad. For openers, it looks like banks can say goodbye to their 49.1% hopes for any watering down of the Dodd-Frank financial reform law. Another four years of Portion of Staten Islanders who voted for Mr. Romney, the Obama also means that other reforms that bankers have tried to fend off for years may now highest percentage of any borough come to pass. First and foremost, that means the Volcker Rule, which bans banks from placing risky bets with their own capital. “Obama Victory Seals Volcker Rule,” was the title of a report Sources: Office of the Mayor, NYC Board of Elections istockphoto last week from Tabb Group, a Wall Street research firm. THE GREAT WHITE WAY UPSTAGED In another blow,Treasury Secretary Timothy Geithner, long seen as, if not a friend of Wall Broadway’s lights were flickering even before Superstorm Sandy blew Street, at least not an enemy, will almost surely exit soon. And don’t forget that strong consumer them out totally for a few days. advocate Elizabeth Warren, many a banker’s bête noire, will soon be sworn in as a senator from Massachusetts. “We’re going to hold the big guys accountable,” she told supporters on election Weekly Broadway ticket sales, change y-o-y +18.3% night. —aaron elstein +8.8% -7.6% -8.4% +2.7% -3.3% +2.3% -5.4% -35.9% HIPSTER BROOKLYN GETS ITS FIX. posted its strongest ad growth in Service on the vast bulk of the city’s seven years—news strong enough to HOORAY! subway system defied the odds and fuel a 22% explosion in its share price BABY WALRUS MITIK and the other New returned to normal last week in the on Nov.6. Meanwhile, News Corp.’s York Aquarium creatures did not need to wake of Superstorm Sandy,but some results also surprised on the upside, be evacuated. Nearly all survived. of the hippest of the system’s 8.5 mil- with a tripling of net income paced 9/9/12 9/16 9/23 9/30 10/7 10/14 10/21 10/28 11/4 lion daily riders were among the last by growth in its cable business. Source: The Broadway League to feel the love.The L train, the life- Cablevision went the other direc- line between Williamsburg and tion, posting a loss in the quarter. ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY points east to Manhattan,and the G, Worse lies ahead, following the the only line connecting Queens to storm, which knocked out service to northern Brooklyn without looping half the company’s customers. … through Manhattan, were among GAS PAINS. A huge surge in the vol- THIS WEEK IN CRAIN’S the last to rumble ume of price-gouging OY VEY! ELEC- back to life. … complaints in the city A NOR’EASTER THE INSIDER ------1 TION DAY MADNESS. ‘These are not spawned by Sandy, to brought snow and high IN THE BOROUGHS------Long Election Day roughly 600, has 3 God-given winds to a city lines, storm-shut- prompted state Attor- still struggling IN THE MARKETS------4 tered polling sta- monopolies. ney General Eric to cope with the previous BUSINESS PEOPLE ------8 tions, broken ballot Schneiderman to scanners and a dearth They will launch an investiga- storm. CORPORATE LADDER ------9 of affidavit ballots be held tion.Most complaints OPINION ------10 made voting labori- have been about gas ous for many last accountable’ prices. On that front, GREG DAVID------11 week and quickly —Gov. Andrew Cuomo the mayor took action is that the effort has spawned $600 REAL ESTATE DEALS------12 provoked howls of on the power companies of his own late last million in bills, mostly for services outrage from Mayor that some have criticized week. He signed an rendered by the trustee’s own firm.… REPORT: HEALTH CARE ------13 Michael Bloomberg for failing to speedily emergency order set- POP-UP PAPER FOR CAUSE. A publish- THE LIST ------16 and others. The situ- reconnect the powerless ting up an odd-even er of five downtown neighborhood ation was dire in the wake of license-plate system papers has launched a sixth. It’s a CLASSIFIEDS ------18 SMALL BUSINESS enough to spur the Superstorm Sandy for gas purchases. … short-term weekly called NYC Re- Instead of tending trees, NEW YORK, NEW YORK ------25 City Council to MOPPING UP MADOFF. connects, with an accompanying web- schedule hearings for next month The bankruptcy trustee leading ef- site, designed to help lower Manhat- Urban Arborists’ Bill Logan SOURCE LUNCH------26 is tackling the “exhausting about what went wrong. Hint: The forts to recover the ill-gotten gains of tan recover from Sandy. The paper and sad work” of clearing OUT AND ABOUT ------27 closure of the offices of the Board of imprisoned Ponzi thief Bernie Mad- will be distributed free below 23rd Elections due to storm damage may off says he has now passed the Street. Meanwhile, Gov. Andrew those downed by Sandy. P. 20 SNAPS------27 have contributed. ... YOU’VE GOT halfway point. He has collected more Cuomo last week estimated the CORRECTIONS & UPDATES EARNINGS. Surprise, surprise! AOL, than half of the $17.3 billion in prin- storm’s cost in the state at a whopping Emma Jupp is president of Liberty Travel in Ramsey, N.J. Her surname was misspelled long ago given up for dead by some, cipal that investors lost.The bad news $33 billion. —lauren elkies in the Oct. 22 “Growth in cruises buoys tiny firm.” Due to Hurricane Sandy, the first preview of the Public Theater’s production of The Twenty-Seventh Man was changed to Thursday, Nov. 8. The original date was Nov. 7, as listed in the Nov. 5 Out and About. STORIES TO WATCH THIS WEEK vol. xxviii, no. 46, november 12, 2012—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at Nov. 12: Christie’s Nov. 13: Crain’s Nov. 14: Ground- Nov. 15: New York New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s begins to auction Health Tech breaking for 44- City labor-force New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777.$3.00 a copy, $99.95 one works from Andy Summit takes place story condo on and unemployment year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved. Warhol Founda- at the Sheraton stalled building site data released. tion’s holdings. New York. across from UN.

2 | Crain’s New York Business | November 12, 2012 20121112-NEWS--0003-NAT-CCI-CN_-- 11/9/2012 7:15 PM Page 1

IN THE BOROUGHS STATEN ISLAND

UNDER WATER STREET— LITERALLY: A damaged storefront in lower Manhattan New York’s last week saddest biz strip Hylan Boulevard, an economic lifeline, is teetering on the edge

BY ALI ELKIN

Many waterlogged south shore Staten Islanders, for whom a car is a necessity, need a mechanic these days. But last week, they couldn’t find one at Guy’s Tire Buys on Hy- lan Boulevard. Its other store,on higher ground elsewhere on Staten Island, mainly sells tires and parts. But the Hylan shop does more complex repairs— at least before Superstorm Sandy. Last week,though,it was still without power. “We’re operating with half a facility,”said Frank Carbonaro,a part- time manager at the store. “We’re losing business

buck ennis terribly.” HIT BIG Hylan Bou- levard, the 14- mile-long com- HYLAN14 BLVD.’s mercial artery length in miles that is the lifeblood of Staten Island’s Bleak Friday MAX.$2M SBA south shore, disaster loan took the brunt RETAIL NONPROFITS of Superstorm Sandy. The 10 storm didn’t just HEIGHT, in feet, fill homes and of debris piles outside homes The holidays are already over Giving season was supposed shops with sea- water and for shops slammed by storm to save charities. Until Sandy sewage and push boats into back- yards. It shut down the businesses that cater to the needs of daily life— BY ADRIANNE PASQUARELLI BY THERESA AGOVINO supermarkets and salons, dry clean- ers and delis. Denise Carbonell and her husband, Derek Dominy, started prepping for A few weeks ago, Citymeals-on-Wheels Executive Director Beth Shapiro In the two weeks since Sandy the holiday retail season in May. They handcrafted jewelry, metal furni- wasn’t especially worried that donations were down slightly since July.The struck, much of Hylan Boulevard ture, wall hangings and pillows in time for the rush of shoppers that nor- holiday giving season was approaching,along with the nonprofit’s 26th an- remained closed for business. Larg- mally arrives in November. Instead, a severe tropical storm called Sandy nual Women’s Power Lunch, its largest fundraiser, which was expected to er stores—a ShopRite, a CVS— blew in, causing such extensive damage that their holiday business will be raise $1.2 million for the charity. were able to reopen quickly, but the essentially wiped out. Then Superstorm Sandy bore down on the city and Ms. Shapiro’s anx- mom-and-pop shops that had “It’s our stock and our equipment to make the things we do,our tools and iety rose. thrived in recent years, providing molds,” said Ms. Carbonell, who is dealing with $150,000 worth of damage In the 10 days after the storm, donations to Citymeals, which delivers services and employment for the is- at her store, Metal and Thread, in Red Hook, Brooklyn. “We do more in food to the homebound elderly, dropped about 50% when compared with land’s growing population, were in those two months [November and December] than in the entire year.” the corresponding period last year. Meanwhile, the nonprofit gave out an the dark last week, their steel shut- Across the Northeast, retail experts estimate that stores lost about $4 unplanned 50,000 meals to those affected by Sandy, consuming $500,000 ters closed. Some may never come back. billion in sales for the ings per share—hardly a of its annual budget of $17 fundraisers due to the bad “We have a limited number of week that Sandy hit. Items lethal blow. But scores million. weather or out of respect for businesses,especially the middle- to Footwear seller Steven made by of merchants like Ms. “Of course we wanted the storm’s victims. large-size businesses,” said Linda Madden Ltd., a public Carbonell who already to help,” said Ms. Shapiro. Now nonprofit execu- Baran, president of the Staten Is- company with 100 out- hand struggle to compete “But we need money to tives are grappling with how land Chamber of Commerce. “Our posts, took a $1 million with their larger chain- prepare meals.” they will recoup the money economy would take a huge hit, and hammering, for exam- cannot be store rivals face far more Citymeals is one of they lost. And as the tradi- we would hate to see them leave our ple, from the weeklong replaced meaningful losses. In scores of charities that ral- tional giving season begins, borough.” closures of nine local addition to potential lied to help those affected these executives can’t help The rising cost of Sandy could stores. Chief Executive sales, many entrepre- by the storm, donating but wonder if donors will be total $33 billion for the state. Lost Ed Rosenfeld said in a neurs lost merchandise, food, money and other more likely to open their economic activity for city business- conference call that this store fixtures, tools and supplies. Dozens of other groups wallets to Sandy-related charities, es is estimated to be around $5 bil- translates to about one or infrastructure. Most did the same, even as they were leaving their organizations strug- lion,according to the city comptrol- two pennies off the company’s earn- See HOLIDAYS on Page 21 forced to cancel or postpone See CHARITIES on Page 22 See SADDEST on Page 22

November 12, 2012 | Crain’s New York Business | 3 20121112-NEWS--0004-NAT-CCI-CN_-- 11/9/2012 7:23 PM Page 1

Marc C. Leavitt, Esq. Attorney at Law IN THE MARKETS by Aaron Elstein

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fter parking themselves on the couch to watch the Sandy aftermath, people are now going to focus on Alosing weight. Also, they’ll be consuming more herbal tea and organic food.That, at least, is the considered opinion of the stock market, which last week decided that Weight Watchers International Inc. and Hain Celestial Group Inc. were two of the big winners in the post-Sandy world. Weight Watchers saw its stock price jump last week by 18%, making it the top performer on the Bloomberg/Crain’s index.That rally turned around what had so far been a disappointing year for investors in the New York-based company.The weakness was driven by, ahem, soft attendance at member meetings in the U.S. and United Kingdom.

Health-trend-conscious in- held at business offices. vestors also have been more attract- Clocking in at No.2 last week on ed this year to such companies as Are- the Bloomberg/Crain’s index, with na Pharmaceuticals Inc.,which during a 7% increase in its stock price, was the summer secured government Hain Celestial, the Melville, L.I.- approval to sell an obesity drug. based maker of Celestial Season- But now the tide may be going ings tea,Arrowhead Mills flour and Weight Watchers’ way. After all, other such stuff. Natural and or- shortly before Sandy stormed ganic food stocks are hot this year through, Mayor Michael Bloomberg and none more so than Hain,whose told folks to “just stay hunkered in shares have soared by 69%.Investor your home and have a sandwich out expectations for growth are so high of the fridge and sit back and watch that even the 57% increase in quar- television.” terly earnings reported earlier this That sort of pack-on-the- month fell a bit short of forecasts. pounds advice figures to drive more In the short term, Hain also fig- traffic to Weight Watchers, which, ures to get a boost as consumers who for what it’s worth, recently kicked lost power after Sandy restock their off a marketing campaign featuring refrigerators.“I hate what happened Jessica Simpson. (“Who, by the way out there,” CEO Irwin David Simon is doing great,” Weight Watchers said, “but it’s good for business.” CEO David Kirchhoff said on a con- The award for making the most ference call last week.) compelling case for Hain Celestial, The company reported an 11% however, goes to the headline writ- increase in third-quarter earnings ers at the website Motley Fool, who last week, and analysts are forecast- last week published an article titled: ing better results next year as more “This Company Will Make You Weight Watchers meetings are Look Better Naked.” Ⅲ

THE AMOUNT of profit made by the government from the various lending programs it set $13Bup to aid commercial and Wall Street banks during the crisis years of 2007 through 2009, according to a report last week by the Federal Reserve Bank of New York.

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© 2012 Tyco Integrated Security. All Rights Reserved. Tyco and Tyco Integrated Security are marks and/or registered marks. Unauthorized use is strictly prohibited. All other marks are the property of their respective owners. 20121112-NEWS--0006-NAT-CCI-CN_-- 11/9/2012 6:38 PM Page 1 THE INSIDER by Andrew J. Hawkins and Chris Bragg State Senate in flux Continued from Page 1 that characterized Democrats’ Senate reign in 2009 and 2010. “I didn’t know whether to chuckle or cry,” said Michael Du- rant,New York state director of the National Federation of Indepen- dent Businesses.“Unfortunately, it appears in some races that are essential to the Senate that economic development and jobs were not the central theme.” The worry is that the Senate wide world photos wide /

Democratic conference, dominat- ap ed by New York City members and POWER SHIFT: A Democratic takeover of often at odds with itself, will seek the upper chamber worries business groups. to raise taxes on high-income earners, impose wage mandates, strengthen labor protections,block Senate is still an open question. hydrofracking for natural gas and Senate Republicans express confi- undermine the 2% cap on dence that, after paper ballots are property-tax increases. At the very counted in two undecided races in least, business leaders say, the slim Schenectady and Columbia coun- margin between parties in the Sen- ties,they will have the 32 seats they ate will slow the legislative process. need. Democrats, who have 29 seats,argue that with four apparent ‘On the defensive’ pickups, the advantage is theirs. “Everything is that much more But the situation is more com- difficult,” said Brian Sampson, ex- plex than that. To recapture the ecutive director of the pro-business Senate, Democrats must lure back group Unshackle Upstate, which four disenchanted members who largely backed Senate Republicans broke away last year to form the In- during the campaign. “I don’t care dependent Democratic Confer- if you’re the business community or ence. Those members represent the ultra-progressive left: Any bill more moderate districts than their that has any controversy to it is just left-leaning colleagues do. going to take that much longer to Another wild card is state Sen.- get to the floor. And once it gets elect Simcha Felder,a Brooklyn De- there, you’re going to have to work mocrat who plans to join whichever that much harder to get it passed or conference is in the majority. Of get it defeated.” course, Mr. Felder may ultimately After Democrats won the ma- decide that question himself. Discover 360° Service. jority in 2008, a divide formed between its city members,who pushed Changing membership left-of-center legislation that had The Democrats’ current leader, Whether you need to restructure your occupancy plan or your debt been bottled up during their four Brooklyn’s John Sampson,is wide- structure, move to a new building or manage your building’s operations, decades in the minority,and its sub- ly viewed as being on his way out. urban and upstate moderates. In No clear replacement has emerged. Cassidy Turley’s experts deliver results. 2010, their wrangling held up the Senate Democrats are seeking to state budget for three months. reassure business leaders. “We’re The state’s powerful teachers’ anxious to move forward with a union spent heavily this year for pro-jobs agenda that the business MARKET Democratic Senate candidates, community would appreciate, in- strengthening the union’s hand in cluding targeted tax incentives for SPACE FIND upcoming fights over teacher eval- small businesses,”said Sen.Michael SPACE uations and education policy. Sen- Gianaris, D-Queens. Since 2009, MANAGE ate Democrats are also aligned three of the conference’s trouble- with tenants’-rights groups, which makers—Carl Kruger,Pedro Espa- SPACE could complicate negotiations on da Jr. and Hiram Monserrate— tax breaks for condo and co-op have been convicted of crimes and BUILD owners, the city’s J-51 tax credit removed from office,and more than FINANCE & and loft-tenant laws. And the ef- a third of the conference’s seats have SPACE STRUCTURE fort to increase the state’s mini- changed hands. mum wage, which Mr. Cuomo Mr. Cuomo, who triangulated supports, will likely get a boost. the split Legislature and offered “Businesses are going to be on Democrats little campaign sup- the defensive; fracking is going to port, told reporters he has no plans be on the defensive,”said one fiscal to get involved in the chamber’s conservative in Albany. “There’s leadership situation. Discover Fully Integrated Service. going to be pressure to blow holes “No one is going back [to dys- Discover Cassidy Turley. in the state tax cap and raise taxes.” function],” the governor said.“The Which party will control the Democrats were in power.The De- Peter Hennessy mocrats then lost power because of President, New York Tri-State Region LISTEN to a discussion at the dysfunction. And I think they 212.318.9790 CrainsNewYork.com/podcasts [email protected] learned that lesson the hard way.” www.cassidyturley.com Crain’s Insider, our award-winning politics newsletter, is Tenant Representation / Project Leasing / Project & Development Services / Property Management / Corporate Services / Capital Markets now a blog. Read it every day at www.crainsnewyork.com/insider

6 | Crain’s New York Business | November 12, 2012 JOIN TOP WOMEN EXECUTIVES December 4, 2012 Join us for this important Morning Workshop, at the Hilton New York, for an exciting opportunity to network and hear from top women executives on how to deal with these important topics: 2012 ● Achieving Effective Work Life Balance ● Bridging the Wage Gap ● Using Sponsorship to Break into the Executive Suite LEADERSHIP WORKSHOP Register today!

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Beth Bierbower, President, Employer Group Segment, Humana Bonnie Boone, Senior VP and Health Care Practice Leader, Suzy Welch, Alliant Healthcare Solutions The best-selling author, Celia Brown, Group Human Resources Director, Willis Group Holdings popular television commentator, and noted Elizabeth Francy Demaret, Chief Customer Relationship Offi cer, business journalist will Sedgwick CMS be the keynote speaker Helene Fisher, Commercial Head Underwriting Quality, Chartis at the Leadership Will Fahey, Senior VP, Zurich North America Photo: Deborah Feingold workshop. Trevor Gandy, Chief Diversity Offi cer, Chubb Corp. Eric Hutcherson, Managing Dir., HR Leader, U.S. & Canada Division, Marsh Inc. , Ph.D. Meryle Mahrer Kaplan , Senior VP, advisory services, Catalyst Inc. Signed copies of Suzy Deborah Luthi, President of Risk & Insurance Management Society Welch’s new book 10-10-10 for all Seraina Maag, CEO, of XL North America pre-registered Carol Murphy, Managing Dir., Aon Risk Solutions workshop attendees Kathleen Savio, Chief Administrative Offi cer, Zurich North America James Turley, CEO, Ernst & Young

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Media Partner: 20121112-NEWS--0008-NAT-CCI-CN_-- 11/9/2012 1:15 PM Page 1

BUSINESS Growth3.2% rate for NYC tech jobs in 2Q, down from 6.2% in 1Q PEOPLE Source: Cook Associates Executive Search

EXECUTIVE MOVES

Prudential Douglas Elliman: Ace Watanasuparp, 31, joined the residential brokerage as president of DE MAYOR OF STONE Capital Mortgage, STREET: Peter Prudential’s lending Poulakakos owns arm and a joint venture with Wells seven restaurants on Fargo. He was previously area the block. manager for Wells Fargo, covering Queens retail and overseeing Manhattan, Long Island, the Bronx, Westchester and Queens for the DE Capital Mortgage-Wells Fargo joint venture. Orion Trading: Tom Telesco, 46, was promoted to president, worldwide, at the advertising and marketing company. He was previously president, North America. Laura Ryan, 38, was promoted to president, U.S. She was previously executive vice president and director of client and media services. WeiserMazars: Jennifer Palmer Farrington, 39, joined the accounting, tax and advisory services firm as chief marketing officer. She was previously director of marketing for the Northeast region and the national marketing director, not-for-profit practice, at Grant Thornton. Association of Insolvency and Restructuring Advisors: Brian Ryniker, 36, was appointed to the board of directors.

buck ennis He will continue as managing director GOTHAM GIGS at CBIZ MHM. Brooklyn Real Property: Jean Paul Ho, 47, founded the real estate company as owner. He was previously vice president of Fillmore Real Estate. Petsky Prunier: Seth Rosenfield, 43, joined the investment bank as Dining interrupted managing director. He was previously managing director at BMO Capital Markets. CBRE: Elaine Kleinberg, 48, joined the Power is back, but customers still scarce downtown real estate firm as managing director. She was previously general counsel The night Superstorm Sandy hit New York, to most of Manhattan, three of his businesses— for Newmark Grubb Knight Frank. AlixPartners: Steven ‘It was as Peter Poulakakos darted in and out of his seven Ulysses, Vintry Wine & Whiskey and Growler Nevill, 47, joined restaurants on Stone Street in lower Manhattan, Bites & Brews—were ready to serve drinks. But the consulting firm if I was at as managing checking on the sump pumps and the rising only about 10 local residents showed up. ¶ While director, a newly the shore, sewer water that was seeping into their Mr. Poulakakos tallies his losses, including created position. He basements. ¶ He ended up spending the night in destroyed equipment and more than $30,000 was previously watching executive vice his third-floor office at 93 Pearl St., watching worth of spoiled food, another worry is weighing president for the water cars float by and observing the strange tidal on him. ¶ “My No. 1 concern,” he said, “is about inventory management and support at Macy’s Department Stores Inc. patterns on the street. “It was as if I was at the the companies that have had to go elsewhere Aptsandlofts.com: Brad Phillips, 40, recede shore, watching the water recede and come temporarily. I just hope they come back and stay was promoted to managing director at the real estate brokerage firm. He was and come back,” said the restaurateur, whose downtown committed to lower Manhattan.” ¶ He estimates previously director of product roots reach back to the legendary Harry’s, which that 90% of his customers have yet to return to development. back’ his father opened four decades ago. But it was his his popular restaurants. Some may not even Jeanine Castellano, 30, joined as senior project manager. She was previously livelihood that was going out to sea. ¶ The next know they are open because the telephone lines managing director at MNS. morning, nearly a third of his 250 downtown have been knocked out. It’s a bad start to the Studley: Oliver Petrovic, 32, joined the international commercial real estate employees went in to scrub down and disinfect holiday season. ¶ “At this time of year,” he said, services firm as director of its New the damaged eateries—he owns 13 restaurants in “we get calls every day about parties, and that’s York office. He was previously a tenant rep in the New York office of the area and another nine in midtown.They were not happening now.” UGL Services. so efficient that as soon as electricity was restored —lisa fickenscher Greentarget: Steven J. DiMattia, 40,

8 | Crain’s New York Business | November 12, 2012 20121112-NEWS--0009-NAT-CCI-CN_-- 11/8/2012 6:44 PM Page 1

joined the strategic communications firm as senior vice president. He was CORPORATE LADDER previously president at EVC Group. NBCUniversal: Hilary Smith, 42, was ENTER:NEW MEDIA USHERS IN PRESIDENT promoted to senior MARK CURTIS WAS LOOKING FOR AN EXECUTIVE to run the business he had started, enter:new media, a social-media management vice president of communications for and marketing agency focused on the entertainment and fashion industries. “Starting your own business, and finding someone NBCUniversal’s to hand your baby over to, is a very emotional experience,” he said. “It comes down to intangibles, enough trust to let them entertainment and run things and not undermine them.” Mr. Curtis found Lynn Murray, 40, enter:new media’s new president. digital networks and Previously senior vice president at Vidicom, Ms. Murray was initially hired at enter:new media about six months ago as integrated media, vice president of new business development. It was an audition for the head role. “She had a strong emotional IQ and a overseeing all communications for the way of communicating that complemented my own,” said Mr. Curtis, who cited Ms. Murray’s business development and division. She was previously senior vice president of digital communications and client-services experience with high fashion and entertainment as ideal qualifications. integrated media marketing. Ms. Murray will be responsible for managing strategic video, interactive and viral social campaigns, as well HealthCare Chaplaincy: Linda Emanuel, as identifying trendsetting consumers and merging them into marketing plans for clients like Hudson Bay Co., TV Guide 58, joined the palliative-care magazine and DirectTV. Ms. Murray has garnered kudos from clients and respect from colleagues. “I am a high-strung, organization as senior vice president for wacky guy, and she brings grace and elegance to our company,” Mr. Curtis said. —EVA SAVIANO research and education. She will continue as director at the Buehler Center on Aging, Health and Society at Northwestern University. Richard A. Powell, 47, joined as deputy director for research. He was previously director of learning and research at the African Palliative Care Association in Kampala, Uganda. MediaWhiz: Steve La Peruta, 50, was promoted to senior vice president, information technology, at the integrated digital media agency. He was previously vice president, information technology. Adam Riff, 33, was promoted to senior vice president, digital strategy. He was previously general manager for search. MyPublisher: Cambria Evans, 31, joined the printing company as vice president and creative director of cards and stationery, a newly created position. She was previously senior graphic designer at Victoria’s Secret. New York City College of Technology: Pamela Brown, 57, was promoted to associate provost. She was previously dean of arts and sciences. Acquity Group: John Pompa, 46, joined the e-commerce and digital marketing company as associate creative director. He was previously principal visual designer at TandemSeven. Broadcast Music Inc.: Silvia Davi, 37, joined the performing-rights organization as vice president and head of strategic communications and marketing. She was previously vice president and head of corporate communications and branding at Marsh & McLennan Cos. Coro New York Leadership Center: Ellen Moncure Wong, 36, joined the training program as director of development. She was previously deputy director of gift planning and special campaigns at the American Civil Liberties Union. Karp Resources: Robert Shaver, 30, joined the consulting firm as managing consultant. He was previously director of strategic planning and board liaison at City Harvest. Marcum: Lawrence A. Litt, 38, joined the accounting and business advisory firm as a partner. He was previously managing director of the New York tax- exempt organizations tax practice at KPMG. Katten Muchin Rosenman: Michael M. Rosensaft, 35, joined as a partner. He was previously assistant U.S. attorney with the U.S. Attorney’s Office, Southern District of New York. —eva saviano

EXECUTIVE PROMOTIONS The fastest way to get an announcement into Crain’s is to submit online. Fill out the form at www.crainsnewyork.com/section/ executive_moves. The Executive Moves column is also available online.

November 12, 2012 | Crain’s New York Business | 9 20121112-NEWS--0010-NAT-CCI-CN_-- 11/9/2012 1:25 PM Page 1

OPINION CRAIN’S NEW YORK BUSINESS The way forward editor in chief Rance Crain publisher, vp Jill R. Kaplan he nation’s past four years have been economy going, deficits down and political parties working EDITORIAL editor Glenn Coleman tumultuous, economically and politically. together? Several bipartisan blueprints have been crafted managing editor Jeremy Smerd The housing market crashed, financial with roughly the same framework: Raise taxes on those who deputy managing editors Valerie Block, Erik Ipsen firms collapsed, and the auto industry can most afford it, cut spending in ways that won’t damage assistant managing editor Erik Engquist nearly ceased to exist.The economy the economy, and make investments that will ultimately senior producer, news Elisabeth Butler Cordova news producer Lauren Elkies nosedived, and markets started to panic grow revenue. contributing editor Elaine Pofeldt until government bailouts and stimulus Achieving this “grand bargain,” however, requires votes columnists Greg David, Alair Townsend crain’s health pulse editor Barbara Benson helped restore stability. Corporate profits surged and the from elected officials who won their seats by demonizing its senior reporters Theresa Agovino, stock market doubled, but companies sat on their cash, premises: tax hikes and defense cuts (Republicans) and Aaron Elstein, Lisa Fickenscher, Matthew Flamm T reporters Chris Bragg, Amanda Fung, Daniel Geiger, unwilling to invest when debt-ridden consumers couldn’t entitlement reforms (Democrats). But the time to do it is Andrew J. Hawkins, Annie Karni, spend or borrow. Unemployment spiked. Washington now, before the next campaign cycle ramps up and rhetoric Adrianne Pasquarelli web reporter, producer Nazish Dholakia shifted to the Democrats, but the Republicans rebounded in again dominates the art director Steven Krupinski 2010, achieving a balance of power sufficient to ensure, well, political discourse. deputy art director Carolyn McClain Washington staff photographer Buck Ennis gridlock and the loss of the United States’ triple-A credit Averting the copy desk chief Steve Noveck rating. must act now, upcoming “fiscal copy editor Thaddeus Rutkowski Suzanne Panara Despite all that turmoil, last week’s election was déjà vu: cliff ”—an unfortunate data editor before the next assistant data editor Emily Laermer Barack Obama won, and Republicans again asked consequence of the researchers Eva Saviano, Amy Stern Ali Elkin themselves whether they should moderate their positions campaign cycle 2011 debt-ceiling intern and appeal to a broader spectrum of the demographically fiasco—should ONLINE AND INTERACTIVE SERVICES senior web developer, interactive changing nation.The question had been forgotten when the provide the impetus Chris O’Donnell for a deal. And New GOP captured the House of Representatives in 2010. But ADVERTISING, MARKETING AND PRODUCTION that win came courtesy of a fickle and unsustainable York’s congressional advertising director Trish Henry coalition: Tea Party voters, who mistakenly believed that the delegation should lead the way. With its mix of urban senior account managers Irene Bar-Am, Courtney McCombs, Suzanne Wilson national debt was a more immediate problem than the worst liberals and suburban and upstate conservatives, the Empire account executive Jill Bottomley Kunkes recession in 70 years, and older voters, who (in an odd role State can offer the imprimatur of bipartisanship and shared sales coordinator Danielle Wiener newsletter product manager Alexis Sinclair reversal) were convinced that the GOP would save their sacrifice. Our high earners and hefty health care spending credit Todd J. Masura (313-446-6097) Medicare from the Democrats. will be targets, but a strong case can be made for federal director, audience development Michael O’Connor After retaking the House, Republicans briefly resumed investment in New York’s impressive technology and senior marketing manager their decades-long quest to curb Medicare spending, then education sectors and in its infrastructure. New Yorkers Catherine Schutten event producer Courtney Williams abandoned it when Democrats used it against them in can’t just be taxed more; we should get more to train the reprint sales manager Lauren Melesio campaigns. Just like old times. workforce and build the economy of tomorrow. We are the production and pre-press director Michael Corsi What, then, is the way forward? How can the U.S. get its growth we’ve been waiting for. advertising production manager Suzanne Fleischman Wies

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WIN RE-ELECTION? Merrilee Patterson Crain, secre- from New Trier High School in TO ADVERTISE: tary and board member of Crain 1960. After attending the Uni- Contact Advertising Director Trish Henry at 26% The media were biased in the Communications Inc. and wife versity of Illinois, she graduated [email protected] or call 212-210-0711. president’s favor. of Crain’s New York Business from the Katherine Gibbs www.crainsnewyork.com/advertise founder and Editor in Chief School in Boston and worked in FOR INFORMATION ON OUR EVENTS: 23% America’s changing demographics Rance Crain, died Nov. 2. She the engineering department of helped Mr. Obama. Contact Event Producer Courtney Williams at would have turned 70 on Nov.27. IBM in Evanston, Ill. [email protected] or 212-210-0257. 22% Americans thought Mr. Obama Mrs.Crain was active in char- Mrs. Crain met her husband, www.crainsnewyork.com/events would help the middle class more. itable, business and family activ- Rance, in 1965 on a blind date ities. She started the Gourmet arranged by Rance’s brother, TO CONTACT THE NEWSROOM: 14% Mitt Romney flip-flopped on too Gala for the March of Dimes in Keith. They were married eight 711 Third Ave., New York, NY 10017-4036 many issues. Chicago and was a board mem- months later. The couple raised editorial phone: 212.210.0277 fax 212.210.0799 ber of that city’s Hubbard Street their two daughters, Heather Entire contents ©copyright 2012 Crain Communications Inc. 8% The president reversed the economic All rights reserved. ®CityBusiness is a registered trademark Dance Company and the Good- and Cindi, in Lake Forest, Ill., of MCP Inc., used under license agreement. downturn. man Theatre. She also ran the and have six grandchildren.Mrs. 7% Other benefit and auction for the Lake Crain is also survived by her PUBLISHED BY CRAIN COMMUNICATIONS INC. Forest Symphony. When the mother, Frances, who turned chairman Keith E. Crain Date of poll: Nov. 7 Crains moved to Florida, she she helped design the Crain 100 in July, and her brother, Pat. president Rance Crain 276 votes served on the board of the Orlan- family’s Bermuda-style house in “It’s very rare that a person secretary Merrilee Crain (1942-2012) treasurer Mary Kay Crain do Museum of Art. Windermere,Fla.,and the office combines creativity and intu- executive vp, operations William Morrow One of her proudest accom- building for the Turnstile Media ition with a practical side, but senior vp, group publisher Gloria Scoby plishments was to author a self- Group, her husband’s company Merrilee did,” her husband said. group vp, technology, circulation, published book on her family in Orlando where she served on “She came up with elegant solu- manufacturing Robert C. Adams history as it flowed through the the board. She also was an artist tions to problems that eluded the vp/production, manufacturing David Kamis Patterson cottage in Craigville, and wrote poetry. rest of us, and people gravitated chief information officer Paul Dalpiaz Mass. The cottage was bought Merrilee Patterson Crain was to her for advice and counsel.We founder G.D. Crain Jr. (1885-1973) by her father’s parents in 1919 for born Nov. 27, 1942, in Provi- will miss her love, her pixieish chairman Mrs. G.D. Crain Jr. (1911-1996) bloomberg newsbloomberg FOR THIS WEEK’S QUESTIONS: $4,025. dence, R.I. She grew up in Win- sense of humor, her generosity Go to www.crainsnewyork.com/poll to have your say. A woman of many interests, netka, Ill., where she graduated and her invincible can-do spirit.”

10 | Crain’s New York Business | November 12, 2012 20121112-NEWS--0011-NAT-CCI-CN_-- 11/8/2012 6:48 PM Page 1

and tunnels falls short of yielding a CAROL KELLERMANN fair share from tolls.Absent new ini- tiatives such as tolling the city- Sandy underscores owned East River bridges, the price for MTA facilities should be higher. ● Transit fares should yield a revenue in- MTA funding needs crease greater than 7.5%. Operating costs are going up due to higher fringe-benefit costs for workers as he silver lining in the clouds of Hurricane Sandy well as rising energy costs.The pro- posed fares would still leave deficits is that the region got a glimpse of what life would and cover less than half the cost of a be like without a well-developed and smoothly ride. The added burden should not functioning mass-transit system.That unpleasant be spread evenly. Tourists who take experience should put a new and more positive a single ride should pay more than light on discussions about how to finance the Metropolitan regular commuters,and those on the T commuter railroads, notably the Transportation Authority and the immediate issue of how to LIRR, who are being subsidized for raise toll and fare revenue in 2013. much more than half the cost of their rides should face greater in- The picture of daily commutes users—in proportions of 50%-25%- creases than straphangers. with a crippled MTA was not a 25%,respectively.That is a fair shar- ● Fare decisions should be made on a pretty one. Drivers and straphang- ing of the burden among all who multiyear basis. This is not the last ers alike share big stakes in a reliable benefit, and it contrasts with the fare hike. The MTA’s financial plan transit system. current mix in which fares (at 42%) calls for a similar-size increase in But that system is jeopardized by and auto cross-subsidies (at 13%) 2015, and others will follow. The more than Mother Nature. The each fall short, leaving the MTA current options should specify MTA faces operating deficits and with deficits and a dependency on planned fares in 2015. Predictabili- insufficient funding for currently unsustainable borrowing. ty is needed for the system’s revenue identified capital needs, which do These guidelines have clear im- and its passengers’ wallets. not include measures to prevent fu- plications for the proposals that are The region’s experience with ture catastrophes from the next hur- now the subject of MTA board hear- Sandy has been painful. To avoid ricane.The simple truth is that even ings. All the proposals would in- equivalent man-made disasters due with enhanced efficiencies, the crease fare and toll revenue by 7.5% to the neglect of our transit system, MTA needs more money. annually,with the options relating to we should all be willing to bear a The Citizens Budget Commis- the mix of changes in single-ride modest fiscal discomfort and pay sion calls for funding operating and versus volume-discounted fares. But our fair shares. capital expenses from three the changes need to be bolder: sources—fares, taxes and cross- ● Toll increases should be larger. A Carol Kellermann is president of the subsidies from motor-vehicle 50-cent hike for the major bridges Citizens Budget Commission.

good guess would be that the situation is similar and that concern for A crisis manager the city’s future has been heightened by the storm. Against that backdrop, ask yourself another question: Will for the next mayor each Democratic candidate be able to convince voters that she or he would have done a better job of deal- very four years, the first Tuesday in November ing with Sandy’s destruction? brings not only the election of a president, but the One person New Yorkers would have confidence in is Metropolitan beginning of the New York City mayoral cam- Transportation Authority Chairman paign. Not this year, thanks to Superstorm Sandy. Joseph Lhota,who has shown what a The hurricane may have shaken up the 2013 may- good manager does in a crisis. He is oral race as much as it has disrupted normal life in New York. clearly fiscally conservative, knows E city government inside and out from Begin by answering this question.How often have you seen his days as Rudy’s first deputy may- or heard Public Advocate Bill DeBlasio, Comptroller John or, and appears eerily calm in a crisis (although he has been known to lose Liu, Manhattan Borough President his temper in public at other times). Scott Stringer or former Comptrol- Mr. Lhota’s path for a mayoral ler Bill Thompson recently? candidacy begins and ends with Gov. As for City Council Speaker Andrew Cuomo. He’s the governor’s Christine Quinn, she has been man now. If Mr. Cuomo cares about much in evidence in Mayor Michael the competence of the next mayor Bloomberg’s many storm briefings. and if he’d like a devoted ally at City She’s been just behind his left shoul- Hall,Mr.Lhota fits the bill.The gov- der like a prop, and doesn’t that say ernor’s support for an independent something? candidacy would be very powerful. The obvious comparison is with Maybe the impact of and obses- Sept. 11. Virtually every student of sion with Sandy will fade in the next politics in New York says Mr. few weeks and the mayoral race will Bloomberg won only because the GREG DAVID return to a debate about how much to terrorist attacks rekindled voters’ in- raise taxes on the wealthy,how to im- terest in strong and decisive leaders. pose the living-wage mandate, how The citizens did not think Democra- trust to keep reducing crime, as long many sick days businesses should be tic nominee Mark Green fit the bill. as that person was less abrasive than required to provide, and how to set In fact, voters were uneasy well Rudy Giuliani.The focus group also aside more contracts for minority- before Sept. 11. A focus group the found that the billionaire business- and women-owned companies. Bloomberg campaign held in De- man was almost as well known as the If not,expect print and TV media cember 2000 showed voters wanted Democratic candidates. to begin more critical coverage of the a good manager as mayor, a fiscal Only the insiders know what their Democrats and build up the Lhota conservative and someone they could focus groups are showing today,but a legend.

November 12, 2012 | Crain’s New York Business | 11 20121112-NEWS--0012-NAT-CCI-CN_-- 11/8/2012 6:49 PM Page 1

REAL ESTATE DEALS PLUS

BARE BONES 49 W. 27TH ST. EMPIRE ST. BLDG. 434 SIXTH AVE. Law firm leases dry ASKING RENT; TERM: ASKING RENT; TERM: ASKING RENT; TERM: high $30s per square $55 per SF; 10 years $336 per square foot; foot; five years 10 years SQUARE FEET: SQUARE FEET: 8,700 15,000 SQUARE FEET: 375 ground in two days TENANT; REP: TENANT; REPS: Clifton TENANT; REP: Elixir Codecademy; Bernard Budd & DeMaria; Juice Bar; Charles fter scores of office buildings downtown were walloped by Super- Weitzman of Newmark William Fressle and Rapuano, Winick Grubb Knight Frank Franklin Speyer of Realty Group storm Sandy’s flood surge last week, Fried Frank Harris Shriver Cushman & Wakefield & Jacobson,like many tenants,was left temporarily homeless and LANDLORD; REP: Jonathan Wiener; Mark LANDLORD; REP: Harran Holding Corp.; Furst of Cassidy Turley LANDLORD; REPS: Empire State Building; in-house had to hustle to line up short-term quarters.In one of its first steps, William Cohen and Ryan Kass of Newmark the big 1 New York Plaza-based law firm signed up for nearly 30,000 BACK STORY: The fast-growing, year-old Grubb Knight Frank BACK STORY: Juice bar moves into low- square feet of space at the tony Seagram Building on Park Avenue. company offering a free online curriculum cal dessert shop space in West Village in a A of programming courses is quadrupling its BACK STORY: Firm specializing in labor building also housing several yoga In an ironic twist, some of that space had just been vacated by Sullivan space in the move, following a $13M and employment law moves to the 61st classes, a ballet school and oodles of & Cromwell, a law firm that is now scrambling for temporary offices as it injection of venture capital. floor of the Empire State Building. young, health-focused professionals. grapples with the closure of two downtown office towers, at 125 Broad St. and 55 Water St., where it bases its operations. “Fried Frank is a very valued tenant of ours, and we felt awful for them,” said Steve Morrows, a leasing director at RFR Realty, the owner of the Seagram Building, Commercial Banking Group where the firm already had a small office. “A lease was drawn up in about two days.” Fried Frank has signed on for two months with the option to extend if it needs to. Meanwhile, the firm is also moving some staffers into open offices at Kaye Scholer’s headquarters at 425 Park Ave. Originally, Fried Frank sent out feelers for about 100,000 square feet of space but last week decided to make do with less because its 400,000-square-foot 1 New York Plaza head office looked like it will not take long to restore. As of early last week, a source familiar with the Brookfield Properties-owned tower said that the outlook had bright- ened, and that the property could reopen within about two weeks— less than half the original estimate. Just four blocks north,a tenant at hard-hit 180 Maiden Lane also lined up a temporary space last week.Law firm Stroock & Stroock & Lavan leased about 60,000 square feet at 601 Lexington Ave. in midtown, a footprint about a third the size of its downtown headquarters. Leonard Boxer, a senior partner at the firm, said Stroock decided to take the space because it was uncertain when 180 Maiden Lane would again be habitable and the firm needed functioning space to continue operating. “They’re working on it desper- ately, but I don’t think it’s clear yet just when the problems will be fixed,” Mr. Boxer said of the building’s landlord, SL Green. “Every- one is doing the best they can, but we can’t gamble; we need a place to work.” —daniel geiger

180 Maiden Lane

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12 | Crain’s New York Business | November 12, 2012 20121112-NEWS--0013-NAT-CCI-CN_-- 11/8/2012 7:06 PM Page 1

HEALTH CARE INSIDE The List NYC’s top health insurers PAGE 16 The Scoop The number of New Yorkers with private insurance drops as Medicaid REPORT fills the gap during tough times PAGE 16 Brokers face uncertain future Obamacare’s state health exchanges may put millions in commissions at risk

BY JUDITH MESSINA

Jamie Schutzer has been a health insurance broker for years, but he recently became licensed to sell property and casualty coverage. His firm, meanwhile, has developed alliances with property and casualty brokers. The moves are hedges against the potential im- PREVENTING pact of Obamacare health ex- INFECTIONS: Dr. Joseph changes that have put hundreds Bosco is hoping to reduce knee-replacement of millions of dollars in commis- readmissions by sions at developing a model to risk. identify patients who are at “Taking greatest risk of every pen- THE20% MAX complications. health ny out of insurers can spend our com- on administration missions is under Obamacare. not going That will squeeze to solve the broker profits issue of the high cost of health insurance,” said Mr. Schutzer, a vice president with J.D. Moschitto & Associates Inc. in White Plains. Brokers have traditionally played a big role in helping small businesses buy health insurance—88% of small group cover- buck ennis age in New York is purchased through brokers, who reap $693 million a year in commissions,according to a study by Boston’s Wakely Consulting Group. But that could change. The state-run Fix patients the first time health care exchange could offer one-stop shopping experiences for small businesses,which usual- New York hospitals NYU Langone doubled down on THE PENALTY BOX going to make sure they get good ly pay more for insurance because hand-washing, screened all incoming follow-up.” they lack the buying power of Average 2013 readmissions face steep revenue patients for staph germs and scrubbed penalty It was a critical discovery, not just bigger companies. The goal is to rooms super-clean to short-circuit in- for patients, but also potentially for simplify and reduce the cost of cuts for readmissions fections. Today, every surgeon has a Hospitals nationwide the hospital’s bottom line. Govern- buying health coverage by mak- scorecard that tracks readmission 0.31% ment and private health insurers are ing it easy for them to compare that are preventable rates.The upshot: Readmissions after tired of paying for medical care that insurance prices and services, knee-replacement surgery are down doesn’t make patients healthy. Last forcing carriers to compete for BY JUDITH MESSINA by half since 2009. New York state hospitals month, the Centers for Medicare & their business. The hospital is fine-tuning 0.55% Medicaid Services began penalizing Brokers may find themselves Three years ago, NYU Langone its approach. hospitals that have excessive readmis- irrelevant if the exchanges that Medical Center noticed a problem. “We’re working to construct a sions for three conditions: pneumo- must be online by January 2014 Half its patients who were readmitted computer model to predict who is at New York City hospitals nia,heart attacks and congestive heart succeed in making it easier and to the hospital less than 30 days after greatest risk for readmission,”said Dr. 0.71% failure. CMS will dock them as much cheaper for employees to shop on undergoing knee replacements did so Joseph Bosco, vice chair for clinical as 1% of their total Medicare reim- their own. Small firms may sim- primarily because of infections. affairs in orthopedic surgery. “We’re Source: Kaiser Health News See READMISSIONS on Page 14 See BROKERING on Page 17

November 12, 2012 | Crain’s New York Business | 13 20121112-NEWS--0014-NAT-CCI-CN_-- 11/8/2012 6:51 PM Page 1

REPORT HEALTH CARE

the fee-for-service structure pre- dominates. OBAMACARE Readmissions hit revenue “We have to find other models,” said Dr. David Cohen, vice chair of medicine at Maimonides Medical SURVIVES. Continued from Page 13 takes by physicians and other “It’s rule No. 1 of cost contain- Center in Brooklyn. NOW WHAT? bursements, rising to 3% in 2015. providers. ment,” said James Tallon, president New York is almost a poster child Right now, orthopedic surgeons, Hospitals in New York state of the United Hospital Fund. “It’s for the growing cost of readmis- THE RE-ELECTION of President such as those at NYU, don’t have to stand to lose 0.55% of Medicare re- part of a future in which health care sions. In 2008, nearly 15% of initial Barack Obama means health worry about readmission penalties, imbursements based on 2010 read- is no longer focused on an individ- hospital stays resulted in readmis- care reform, upheld as but in 2014 CMS is expected to add missions, nearly twice the national ual visit, an individual admission or sions, at a cost of nearly $4 billion, constitutional this past summer four new diagnoses to the penalty average of 0.31%. New York City paying for a unit of services—it’s or 16% of total hospital costs, ac- by the Supreme Court, moves list and likely more as time goes on. hospitals will fare worse. In 2008, looking at patients over a longer pe- cording to the New York State into the implementation phase. The CMS program is one of the they accounted for 47% of readmis- riod of time.” Health Foundation study. The goal is to expand health care first steps in a broad effort, made sions in the state and 55% of read- Financial incentives under In many cases, preventing read- coverage and reduce costs, in more urgent by federal health care re- mission costs,according to a study by Medicare’s fee-for-service system missions seems like common sense, part through policies like the form, to improve patient care and the New York State Health Founda- are still rigged in favor of the short such as making sure patients take Centers for Medicare & Medicaid bring down costs by holding hospi- tion. They will lose an average of term: the more patients admitted, their medicine and arrange follow- Services’ decision to dock tals accountable for the quality, and 0.71% in reimbursements in 2013. the more revenue hospitals bring in. up appointments with their doctor hospitals that have to readmit not just the quantity, of their care. Attempts to reduce admissions of- after leaving the hospital. But it’s no ‘Rule No. 1’ recently discharged patients. How far the penalties will go remains ten require additional and unreim- small task in a city where care is frag- Changes are coming fast. a question. Some private insurers al- Threatened with lost revenue, bursed resources. For example, hos- mented, hospitals have to give dis- The first deadline is Nov. 16. ready negotiate reimbursement rates hospitals in the city are trying to pitals may have to hire additional charge instructions in a dozen or That’s when states must submit based partly on readmissions, and in prevent unnecessary readmissions. personnel to keep track of whether more languages, and the poor and 2008 Medicare stopped paying for Organizations concerned about patients are taking their medicine elderly may be unable to get to a applications to set up health extra costs to treat hospital-acquired health care costs and quality are after they go home. Savings, mean- doctor or pay for medications. insurance exchanges (see infections. California last summer funding studies and pilot projects to while,go to Medicare,private insur- When patients can’t or don’t com- “Brokers,” page 13). The Obama started assessing civil penalties help hospitals figure out how. Na- ers or the patient. Hospitals want a ply, hospitals haven’t traditionally administration probably will give against hospitals for medical errors, tionally, 20% of Medicare patients cut, and CMS and private insurers seen it as their job to follow up.They states that miss the deadline and the White House floated a pro- are readmitted within 30 days, cost- are experimenting with models that complain that CMS penalizes them more time, according to health posal in September for a pilot project ing the federal government $15 bil- pay providers for managing patient for readmissions unrelated to the care industry lawyers. that would ask patients to report mis- lion a year. care long-term. For now, though, original hospitalization. Beginning in January, states “What the readmission program that expand their Medicaid and has done is extend the responsibili- children’s health insurance ty of the hospital beyond the four coverage will receive additional walls to post-discharge,” said Lor- funding, especially for primary raine Ryan, senior vice president of and preventive care. Private the Greater New York Hospital As- insurers and state and federal sociation, which has been working government will continue their with hospitals to implement fixes. shift toward paying doctors and As a result, many hospitals have hospitals based on health revamped their approach. Brooklyn outcomes and less on the volume Hospital Center, which will lose the of services they provide. maximum 1% of reimbursements in The most important 2013, found that more than 50% of deadline is Jan. 1, 2014. readmitted patients didn’t see a That’s when health insurance physician after discharge. Now the exchanges must be running. hospital reminds patients by phone Individuals without insurance will or books a doctor’s appointment. face a tax that increases to $695 The hospital involves a pharmacist annually. Tax credits will be in discharge planning when patients available for those who make up are on multiple medications.Heart- attack readmissions dropped from to 400% of the poverty line— 15.2% in 2010 to 12.2% in the first $88,000 for a family of four. quarter of 2012. Small businesses will get tax “Now we know that if a patient is credits up to 50% of an taking nine or 10 medications, we employer’s health benefits have to pay attention,” said Chief contribution. Quality Officer Dr. Vasantha Kon- Crain’s will cover the road to damudi. health reform in special reports to be published throughout 2013. Showing results —JEREMY SMERD Some readmitted patients also may have psychiatric or addiction issues,or are homeless.Maimonides ing funded by CMS and founda- in Brooklyn, which will be docked tions, but ultimately the hospitals 1% of reimbursements next year, will have to absorb the cost of addi- now coordinates a patient’s post- tional resources and personnel even discharge clinical, psychiatric and as they lose money they would have social needs. The readmission rate made on readmissions. for these patients has dropped by One tactic is an emphasis on out- 50% over the past three years. patient services. The city’s Health New York Methodist Hospital in and Hospitals Corp., for example, is Brooklyn found that half of patients growing its primary-care network with congestive heart failure who and has expanded its telehealth ini- went to nursing homes after treat- tiative for diabetic patients. It also ment returned to the facility. has hired 40 people in recent Methodist, which will lose 1% next months to coordinate inpatient year, streamlined its discharge in- care.Two of its hospitals have some structions and, with a federal grant, of the lowest penalty rates in the city. created a partnership with nursing “There are some readmissions that homes, home health agencies, so- occur despite the best of care,” said cial-service agencies and a physician HHC Chief Medical Officer Dr. So someone tried to tell you why meeting in Miami’s so inspiring, so exciting and so productive. Know this. No tweet, snapshot or posting will ever be enough. You so have to meet here to get it. MiamiMeetings.com service that makes house calls.In the Ross Wilson. “We want to make © Greater Miami Convention & Visitors Bureau – The Official Destination Marketing Organization for Greater Miami and the Beaches. first quarter of 2012, readmissions sure we don’t keep sick patients out for those patients were 13%, down of the hospital who need to be there, from 50% in 2009. but we need to make sure we don’t Many of these programs are be- waste resources.” Ⅲ

14 | Crain’s New York Business | November 12, 2012 7 {days of excellence}

In this 24/7 world, why should your healthcare stop on the weekends? At NYU Langone Medical Center, our expert teams of surgeons and physicians now perform select elective surgeries, procedures and screening diagnostics on Saturdays and Sundays. Get the care you need when it’s most convenient for you. To schedule a weekend appointment, call 888-7-NYU-MED (888-769-8633) or visit www.NYULMC.org. 20121112-NEWS--0016-NAT-CCI-CN_-- 11/8/2012 6:51 PM Page 1

NEXT WEEK: THE NYC’s Largest Health Insurers The list of the top 125 privately held companies LIST Ranked by number of enrolled NYC members THE SCOOP HEALTH INSURANCE PRIVATE INSURANCE % of population who have it, by borough % of insured population who have it, by borough he re-election of President Barack Obama 2010 2011 2010 2011 and the implementation of Obamacare 83.95% could aid a private insurance market that is Bronx 50.21% 84.33% Bronx bleeding business.The number of enrollees 50.69% in the city’s top 10 health insurance plans 85.47% 59.47% dropped 3.3% in September 2012 from a year earlier,to Brooklyn Brooklyn T 85.99% 57.93% 8.2 million, according to Crain’s. The decline would have been worse had Medicaid coverage not increased 89.07% 75.68% Manhattan Manhattan 7.2% in the same period. Four of the six insurance companies that reported 88.75% 73.56% membership gains offer mostly public insurance. 81.42% 65.69% “It’s predominantly the employer-sponsored insurance that’s declining,”said Queens Queens Steve Logan (above), the president of Aetna’s New York market.“You’re seeing 81.37% 64.65% employers not hiring at all, or they’re hiring full-time employees that they are 92.88% 79.65% not extending benefits to.” Staten Island Staten Island Aetna ranked No. 3 on Crain’s list with 1 million New York City members, 92.49% 76.55% a 7.5% decline from a year earlier. Aetna expects to see growth in its high- 85.23% 64.11% deductible plans. The company that reported the steepest fall in membership, NYC Total NYC Total 85.36% 62.79% Empire BlueCross BlueShield, attributed most of its 15.3% drop to a cost- Source: U.S. Census Bureau American FactFinder saving decision last fall to discontinue seven small group products as of April Source: U.S. Census Bureau American FactFinder 2013. That will affect an estimated 250,000 workers and their families. The company still topped Crain’s list with 2.9 million New York City members. % insured in Manhattan, by age group “Costs continue to outstrip wages, and health insurance has become a less 0-17 95.7% affordable product for employer groups and individuals,” said Peter Newell, the director of the health insurance project at United Hospital Fund. The Affordable Care Act provision that allows children to stay on their par- 18-64 82.4% ents’health insurance plans until their 26th birthdays helped.In New York state, 160,000 young adults gained coverage. —emily laermer Source: The Commonwealth Fund

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16 | Crain’s New York Business | November 12, 2012 20121112-NEWS--0017-NAT-CCI-CN_-- 11/8/2012 6:52 PM Page 1

REPORT HEALTH CARE

BROKERS BY Then there’s the role of the group mandated under Obamacare to Brokering an uncertain future THE NUMBERS guide consumers through the choic- es on the exchange.Exactly what so- New York state’s health exchange called navigators will do is unde- Continued from Page 13 perintendent for health at the state ally for small businesses in 2012, ac- must be running by 2014 fined. Professional associations, ply offer employees cash to buy in- Department of Financial Services, cording to the Kaiser Family Foun- organizations that today help peo- surance on the exchange. Already recently said at a public meeting dation—has been a reliable source OF SMALL GROUP ple enroll in Medicaid and even bro- concerned over dwindling commis- discussing how the exchange of increasing income. But insurers 88%COVERAGE in New kers are candidates for the role, but sions, brokers are fighting to retain might work. have been putting on the squeeze. York is purchased through they can’t be paid by insurance car- brokers their business. Mr. Oechsner said the state Empire BlueCross BlueShield last riers.The law mandates that the ex- “It will not be as lucrative for us,” wants carriers to continue to com- year reduced the number of small BROKERS IN NEW YORK STATE change pay them with “grants” from said Alex Miller of Millennium pensate brokers who help business- group plans it sells and slashed bro- earn $693 million a year its operating budget. Chances are Medical Solutions Corp. in Ar- es evaluate their options so that the kers’ 4% sales commission—about they will work mostly with individ- monk, N.Y. “We have to expand exchange won’t need to add a layer $22 to $24 a month per enrollee— THE AVERAGE COMMISSION today uals, but some brokers worry that services and make up for it in vol- to $5 per member per month. Bro- runs about 3.5% of premiums, navigators’ free advice will undercut ume. Longtime specialists will play kers say that doesn’t compensate down from 6% in the 1990s their business. a greater role and continue to add ‘It’s naive to them for all the work they put in, value, but it’s naive to think it’s go- from advising on policies to educat- PERCENTAGE OF U.S. FIRMS with Service is key ing to be business as usual.” think it’s going ing employees to running interfer- three to nine workers offering “We already have a distribution ence on claims. health benefits is shrinking system,”said one broker.“Let’s use it.” How it works to be business “How can you give advice for $60 To compete, industry watchers The exchange will feature an In- per employee a year?” asked Craig 57% 59% 50% say brokers need to figure out what ternet portal where individuals and as usual’ Hasday,COO of Manhattan-based 2000 2010 2012 else companies need, like adminis- small businesses and their employ- Frenkel Benefits and a member of tering employee benefits for small ees can buy health insurance from the legislative council of the Na- PERCENTAGE OF U.S. SMALL groups. private carriers and, if consumers tional Association of Health Un- FIRMS with between three and “To continue to thrive, brokers meet income tests, possibly sign up derwriters. 100 employees is also shrinking need to create value-added servic- for Medicaid. The state is trying to of costs and administrative expenses An even bigger threat to brokers es,” said attorney Sarah Delaney, a work out the mechanics of the ex- to manage commissions. How that may be the time and cost savings 68% 68% 61% partner in Goldberg Segalla’s insur- change, deciding not only how bro- would be worked out remains un- small businesses might reap with 2000 2010 2012 ance practice.“Service is going to be kers fit in, but also who pays the clear. the debut of the exchange. Employ- the way forward.” Sources: Wakely Consulting Group, commissions and how they will Commissions are already under ers could simply give workers a fixed Kaiser/HRET Some brokers are taking even compare with those earned outside pressure. The average payout runs amount to buy insurance on the ex- bolder steps. In September, Man- the exchange. about 3.5% of monthly premiums, change and free themselves from the hattan-based insurance broker Hub There is general agreement that down from about 6% in the 1990s, administrative costs and hassles of the United Hospital Fund. International launched its own pri- small businesses rely on brokers for while commissions on HMO poli- of contracting and managing the Insurers, so far, have yet to weigh vate exchange as an alternative to their help navigating the health in- cies are capped by law at 4%. Under coverage. in on questions of how and whether the state exchange. surance maze.Many also act like the the Affordable Care Act, insurers “If defined contribution catches brokers would be paid for work in “Ours is a budget-based model,” human resources department most can’t spend more than 20% of pre- on and the employer says, ‘I’ll give the exchange, at least not publicly. said Joseph Torella,president of Hub small businesses can’t afford. mium dollars on administrative you $300 a month toward insur- “We recognize the role brokers play International Northeast.“The client “We feel really strongly that bro- costs, an incentive to further lower ance,’what’s the role of the broker in in the marketplace, but we haven’t says, ‘Here’s what we have to spend, kers are a crucial connection to small commissions. that situation? Sit down with each really taken a position,” said Leslie and we want you to build us a chas- business, and we ignore them at our The steady growth of health in- individual employee?” asked Peter Moran, senior vice president of the sis that allows us to pick and choose peril,” Troy Oechsner, deputy su- surance premiums—up 8% nation- Newell, insurance project director New York Health Plan Association. medical and dental coverage.’ ” Ⅲ

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November 12, 2012 | Crain’s New York Business | 17 nb46p18-19cl.qxp 11/9/2012 1:27 PM Page 18

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM EVENT PUBLIC & LEGAL NOTICES Notice of Qualification of SANDLER Notice of Qualification of New York Notice of Qualification of Tetra Tech North Dakota & The Bakken LOWENSTEIN LLP. Notice of Reg. Holdings Equity, LLC. Authority filed New Martinsville, LLC. Authority filed Investor Conference filed with Secy. of State of NY (SSNY) with NY Dept. of State on 10/9/12. with NY Dept. of State on 10/4/12. • on 10/04/12. Office location: NY NYS fictitious name: HG New York Office location: NY County. Princ. bus. Nov. 13 8 am - 4:30 pm County. LLP formed in New Jersey (NJ) Holdings Equity, LLC. Office location: addr.: 3475 E. Foothill Blvd., Pasadena, Learn from industry experts at the vast num- on 09/25/12. Princ. office of LLP: 65 NY County. LLC formed in VA on CA 91107. LLC formed in DE on Livingston Ave., Roseland, NJ 07068. 4/2/12. NY Sec. of State designated 2/4/11. NY Sec. of State designated ber opportunities that North Dakota and the SSNY designated as agent of LLP agent of LLC upon whom process agent of LLC upon whom process Bakken has to offer. Over 25 billion barrels upon whom process against it may against it may be served and shall against it may be served and shall be served. SSNY shall mail process mail process to: c/o CT Corporation mail process to: c/o CT Corporation of recoverable oil provide opportunities for to Attn: Gary M. Wingens at the System, 111 8th Ave., NY, NY 10011, System, 111 8th Ave., NY, NY 10011, investors in Oil, Gas, Real Estate & Business: princ. office of the LLP. Purpose: regd. agent upon whom process may regd. agent upon whom process may General practice of law. be served. VA and principal business be served. DE addr. of LLC: 1209 www.bakkensummit.com addr.: 999 Waterside Dr., Ste. 2300, Orange St., Wilmington, DE 19801. Sheraton New York Notice of Formation of L&O Lighting Norfolk, VA 23510. 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Arts of MONARCH 20-D INVESTMENT, LLC, Master’s degr in Fin Engin, or rel quant SSNY designated as agent upon Org filed with Secy of State of NY field & 5 yrs of exp perform’g quant analysis Townsend Bldg., Dover, DE 19901. a foreign LLC, filed with the SSNY on Name/addr. of each gen. ptr. avail. whom process may be served and (SSNY) on 1/28/02. Office location: NY 8/7/12. Office location: New York of indvdl stocks & complex portfolios. All at SSNY. Purp.: any lawful activities. shall mail copy of any process County. SSNY designated as agent County. SSNY is designated as stated exp must incl each of the follow’g: against LLC to principal business upon whom process may be served. agent upon whom process against creat’g quant analysis metrics to monitor Notice of Formation of CHAI SOLAR, address: 60 RIVERSIDE BLVD, STE PO address to which SSNY shall the LLC may be served. SSNY shall invstmnts under mgmt & to support LLC. Arts. of Org. filed Secy. of State 1802, NEW YORK, NY 10069. mail copy of process against LLC: mail process to: The LLC, 200 E. invstmnt strategies; develop’g math & stat of NY (SSNY) on 10/15/2012. Off. loc.: Purpose: any lawful act. None. Principal business address: 89th St., Apt. 20D, NY, NY 10128. models to simulate fund behavior in NY County. SSNY designated as agent 274 Madison Ave., Ste 1804, NY, NY General Purposes. multi-variable environ; perform’g research NOTICE OF FORMATION OF Patrick 10016. Purpose: any lawful act. of LLC upon whom process against Gerard Carmody, Architect PLLC. Arts mgmt, portfolio mgmt, & client mgmt it may be served. SSNY shall mail of Org filed with Secy of State of NY Notice of Formation of CAIPA SDC Notice of Qual. of Stimulated roles w/i the buy & sell sides; &, conduct’g process to: 780 Riverside Drive, #8-F, (SSNY) on 9/6/12. Office location: NY Bensonhurst, LLC. Arts. of Org. filed Motorsports International LLC, Auth. fin analysis employ’g software tools, incl NY, NY 10032. Term: until 12/31/2062. County. SSNY designated as agent with NY Dept. of State on 9/25/12. filed Sec’y of State (SSNY) 7/31/12. MATLAB, SAS, Bloomberg, FactSet, VBA, Purpose: any lawful activity. upon whom process may be served Office location: NY County. Sec. of Office loc.: NY County. LLC org. in DE SQL Server, as well as data from and shall mail copy of process State designated agent of LLC upon 7/27/12. SSNY desig. as agent of LLC Compustat, CRSP, Worldscope, I/B/E/S, Notice of Formation of 960 Bronx River against PLLC to principal business whom process against it may be upon whom process against it may Barra, DataStream, & MSCI. Resumes: Ave LLC. Arts. of Org. filed with Secy. address: 54 W 21st St, Ste 606 NY, served and shall mail process to: c/o be served. SSNY shall mail copy of AllianceBernstein L.P., Attn: T. Correa, of State of NY (SSNY) on 9/27/12. NY 10010. Purpose: any lawful act. CAIPA, 41 Elizabeth St., 600, NY, NY proc. to NRAI, 111 Eighth Ave., NY, 1345 Avenue of the Americas, New York, Office location: NY County. SSNY 10013. Purpose: all lawful purposes. NY 10011, the Reg. Agt. upon whom NY 10105. ID NEWJCO designated as agent of LLC upon NOTICE OF FORMATION OF IDIP, LLC. proc. may be served. DE off. addr.: whom process against it may be Arts of Org filed with Secy of State of NOTICE OF FORMATION OF Rickey 160 Greentree Dr., Ste. 101, Dover, served. SSNY shall mail process to: NY (SSNY) on 8/20/12. Office location: LLC. Arts of Org filed with Secy of DE 19904. Cert. of Form. on file: Peter P. Benedetto II, 280 Madison NY County. SSNY designated as State of NY (SSNY) on 9/25/12. Office SSDE, Townsend Bldg., Dover, DE PUBLIC & Ave., Ste. 900, NY, NY 10016. agent upon whom process may be location: NY County. SSNY designated 19901. Purp.: any lawful activities. Purpose: any lawful activities. served and shall mail copy of as agent upon whom process may be LEGAL NOTICES process against LLC to: 47 Jefferson served and shall mail copy of process Notice of Qual. of Tempus Quo NOTICE OF FORMATION of Revolution Ave, Hasting on Hudson, NY 10706. against LLC to principal business Alternative Fund, LP, Auth. filed KADIMA LLC, a domestic LLC, Arts. Songs LLC. Office Location: NY Principal business address: 244 Fifth address: 413 9TH AVE APT 2B, NY, Sec’y of State (SSNY) 2/15/12. Office of Org. filed with the SSNY on 8/8/12. County. Arts. of Org. filed with Secy. of Ave, Ste 2423, NY NY 10001. NY 10001. Purpose: any lawful act. loc.: NY County. LP org. in DE Office location: New York County. State of NY (SSNY) on 6/20/12. SSNY Purpose: any lawful act. 12/14/10. SSNY desig. as agent of SSNY is designated as agent upon has been designated as agent of LLC Notice of Qualification of BDT CAPITAL LP upon whom process against it whom process against the LLC may be upon whom process against it may be NOTICE OF QUALIFICATION of PARTNERS, LLC. Authority filed with may be served. SSNY shall mail served. SSNY shall mail process to: served. SSNY shall mail process to CALAMOS ADVISORS LLC. App for Secy. of State of NY (SSNY) on copy of proc. to Att: Raul Espejel, The LLC, 290 West End Ave., Apt. 16C, 630 Ninth Ave, Ste 801, NY, NY 10036, Authority filed with Secy of State of NY 10/02/12. Office location: NY County. 900 Third Ave., 36th Fl., NY, NY NY, NY 10023. General Purposes. also its principle office location. (SSNY) on 10/1/12. Office location: LLC formed in Delaware (DE) on 10022. DE off. addr.: CSC, 2711 Purpose: any lawful activities. NY County. LLC formed in DE on 04/23/09. Princ. office of LLC: William Centerville Rd., Wilmington, DE Notice of Qual. of Sunyata Global 9/15/04. SSNY designated agent R. Bush, BDT Capital Partners, LLC, 19808. Cert. of LP on file: SSDE, Value Fund LP, Auth. filed Sec’y of Notice of Qual. of Sunyata Global upon whom process may be served. 401 N. Michigan Ave., Ste. 3100, Townsend Bldg., Dover, DE 19901. State (SSNY) 4/13/12. Office loc.: NY Value LLC, Auth. filed Sec’y of State PO address to which SSNY shall Chicago, IL 60611. SSNY designated Name/addr. of each gen. ptr. avail. at County. LP org. in DE 2/16/12. SSNY (SSNY) 4/13/12. Office loc.: NY County. mail copy of process against LLC: as agent of LLC upon whom process SSNY. Purp.: any lawful activities. desig. as agent of LP upon whom LLC org. in DE 2/16/12. SSNY desig. Attn: General Counsel 2020 Calamos against it may be served. SSNY shall process against it may be served. SSNY as agent of LLC upon whom process Court Naperville, IL 60563. Principal mail process to the LLC at the addr. shall mail copy of proc. to Att: Keith against it may be served. SSNY shall business address: 610 Fifth Ave. Ste of its princ. office. DE addr. of LLC: Koeferl, 529 5th Ave., 8th Fl., Ste. B1, mail copy of proc. to Att: Keith 700 NY, NY 10020. DE address of The Corporation Trust Co., NY, NY 10017. DE off. addr.: CSC, Koeferl, 529 5th Ave., 8th Fl., Ste. B1, LLC: Corp Service Co. 2711 Corporation Trust Center, 1209 VISIT OUR WEBSITE 2711 Centerville Rd., Wilmington, DE NY, NY 10017. DE off. addr.: CSC, Centerville Rd. Ste 400 Wilmington, Orange St., Wilmington, DE 19801. 19808. Cert. of LP on file: SSDE, 2711 Centerville Rd., Wilmington, DE DE 19808. Cert of LLC filed with Arts. of Org. filed with Secy. of State Townsend Bldg., Dover, DE 19901. 19808. Cert. of Form. on file: SSDE, Secy of State of DE located: 401 - DE, Corp. Dept., Loockerman & CRAINSNEWYORK.COM Name/addr. of each gen. ptr. avail. at Townsend Bldg., Dover, DE 19901. Federal St Dover, DE 19901. Federal Sts., Dover, DE 19901. SSNY. Purp.: any lawful activities. Purp.: any lawful activities. Purpose: any lawful act. Purpose: Any lawful activity.

18 | Crain’s New York Business | November 12, 2012 nb46p18-19cl.qxp 11/9/2012 1:27 PM Page 19

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Qualification of STANDARD Notice of Qualification of BOF LLC. NOTICE OF QUALIFICATION of Notice of Qualification of CERBERUS NOTICE OF QUALIFICATION OF PARTNERS, L.P. Authority filed with Authority filed with Secy. of State of Forexware LLC. App for Authority LEVERED LOAN OPPORTUNITIES CROSSTOWN BUTLER 280 LLC, auth. Secy. of State of NY (SSNY) on NY (SSNY) on 9/26/12. Office location: filed with Secy of State of NY (SSNY) FUND II, L.P. Authority filed with Secy. filed Sec’y of State (SSNY) 9/26/12. 09/28/12. Office location: NY County. NY County. LLC formed in Delaware on 10/5/12. Office location: NY of State of NY (SSNY) on 10/16/12. Office LLC: NY County. LLC Org. in LP formed in Delaware (DE) on (DE) on 3/14/11. SSNY designated County. LLC formed in DE on 3/15/12. Office location: NY County. LP formed DE. 9/24/12. SSNY desig. as agent 09/20/12. Princ. office of LP: 45 W. as agent of LLC upon whom process SSNY designated agent upon whom in Delaware (DE) on 08/31/12. Princ. of LLC upon whom process against 67th St., Apt. 28F, NY, NY 10023. against it may be served. SSNY process may be served. PO address office of LP: 875 Third Ave., 11th Fl., it may be served. SSNY shall mail SSNY designated as agent of LP shall mail process to: c/o CT to which SSNY shall mail copy of NY, NY 10022. SSNY designated as copy of proc. to: Crosstown Parking upon whom process against it may Corporation System, 111 Eighth Ave., process against LLC: Delaware agent of LP upon whom process Inc., Suite 1010, 594 Broadway, NY, be served. SSNY shall mail process NY, NY 10011, also the registered Intercorp, Inc., 113 Barksdale against it may be served. SSNY shall NY 10012. DE Off. addr: 3500 South to c/o Chad Gustafson at the princ. agent. Principal office: 805 Third Professional Center, Newark, DE mail process to Seth P. Plattus, c/o Dupont Highway, Dover, DE 19901. office of the LP. Name and addr. of Ave., 7th Fl., NY, NY 10022. Address 19113. Principal business address: the LLC at the princ. office of the LP. Cert. of Form. on file: SSDE, each general partner are available to be maintained in DE: Corporation Forexware LLC, 7 World Trade Center, Name and addr. of each general Townsend Bldg., Dover, DE 19901. from SSNY. DE addr. of LP: c/o Trust Center, 1209 Orange St., 32nd Fl, NY, NY, 10007. Cert of LLC partner are available from SSNY. DE Purp.: Any lawful activities. Corporation Service Co., 2711 Wilmington, DE 19801. Arts of Org. filed with Secy of State of DE located: addr. of LP: c/o The Corporation Centerville Rd., Ste. 400, Wilmington, filed with the DE Secretary of State, DE Division of Corps, Secy of State, Trust Co., Corp. Trust Center, 1209 Notice of Publication of Herakles Trend DE 19808. Arts. of Org. filed with the John G. Townsend Bldg., 401 Federal 401 Federal St, Ste 4, Dover DE Orange St., Wilmington, DE 19801. Fund I LP. App for Authority filed with Secy. of State of the State of DE, St., Ste. 4, Dover, DE 19901. 19901. Purpose: any lawful act. Arts. of Org. filed with DE Secy. of Secretary of State of NY (SSNY) on Dept. of State, John G. Townsend Purpose: any lawful activities. State, John G. Townsend Bldg., 401 06.08.12. Office location: NY County, Bldg., 401 Federal St., Dover, DE Notice of Formation of Source Federal St., Ste. #4, Dover, DE LP formed in Delaware on 05/25/12. 19901. Purpose: Any lawful activity. Notice of Qual. of Tempus Quo Financial Advisors, LLC, Art. of Org. 19901. Purpose: Any lawful activity. Address to which SSNY shall mail Horizon Fund, LP, Auth. filed Sec’y of filed Sec’y of State (SSNY) 7/23/12. copy of process against LP: Barton NOTICE OF FORMATION OF 1B-60 State (SSNY) 2/13/12. Office loc.: NY Office location: NY County. SSNY Notice of Formation of CDVCA LLP, 420 Lexington Ave., 18th Fl. NY, Collister Street LLC. Arts of Org County. LP org. in DE 8/3/11. SSNY designated as agent of LLC upon INNOVATE NY GP, LLC. Arts. of Org. NY 10170. Principal business filed w/ Secy of State of NY (SSNY) desig. as agent of LP upon whom whom process against it may be filed with Secy. of State of NY address: 277 Park Ave, 40th Fl. NY, on 6/25/12. Office location: NY Co. process against it may be served. served. SSNY shall mail copy of (SSNY) on 09/27/12. Office location: NY 10172. Purpose: any lawful act. SSNY designated agent upon SSNY shall mail copy of proc. to Att: process to Michelle Smith, 500 W. NY County. Princ. office of LLC: 424 whom process may be served. PO Raul Espejel, 900 Third Ave., 36th Fl., 56th St., PH-9, NY, NY 10019. W. 33rd St., #320, NY, NY 10001. Name of LLC: Ronmark LLC. Arts. of address to which SSNY shall mail NY, NY 10022. DE off. addr.: CSC, Purpose: any lawful activities. SSNY designated as agent of LLC Org. filed with NY Dept. of State: copy of process against LLC: 718 2711 Centerville Rd., Wilmington, DE upon whom process against it may 9/21/12. Office loc.: NY Co. Sec. of Ashford St. Bklyn, NY 11207. 19808. Cert. of LP on file: SSDE, Notice of Qualification of Hunt Capital be served. SSNY shall mail process State designated agent of LLC upon Principal business address: 60 Townsend Bldg., Dover, DE 19901. Partners, LLC. App. for Auth. filed Secy. to the LLC at the addr. of its princ. whom process against it may be Collister St #1B NY, NY 10013. Name/addr. of each gen. ptr. avail. at of State of NY (SSNY) on 10/3/12. office. Purpose: Any lawful activity. served and shall mail process to: c/o SSNY. Purp.: any lawful activities. Off. loc.: NY County. LLC formed in Business Filings Inc., 187 Wolf Rd., Notice of Formation of Horizon Delaware (DE) on 8/31/10. SSNY 287 10TH AVENUE, LLC Articles of Ste. 101, Albany, NY 12205, regd. Sterling LLC. Arts. of Org. filed with NOTICE OF FORMATION OF RM Prep, designated as agent of LLC upon whom Org. filed NY Sec. of State (SSNY) agt. upon whom process may be Secy. of State of NY (SSNY) on LLC. Arts of Org filed with Secy of process against it may be served. 8/13/12. Office in NY Co. SSNY served. Purpose: any lawful act. 10/12/12. Office location: NY County. State of NY (SSNY) on 6/19/12. SSNY shall mail process to: Capitol design. agent of LLC upon whom SSNY designated as agent of LLC Office location: NY County. SSNY Services, Inc., 1218 Central Ave., Ste. process may be served. SSNY shall Notice of Formation of FOX HILL upon whom process against it may be designated as agent upon whom 100, Albany, NY 12205. DE address mail copy of process to C/O PRESERVATION DEVELOPER, LLC. served. SSNY shall mail process to: process may be served. PO address of LLC: 1675 South State St., Ste. B, Dominick Incantalupo, P.O. Box 330, Arts. of Org. filed with Secy. of State The LLC, Attn: David Marom, 201 to which SSNY shall mail copy of Dover, DE 19901. Arts. of Org. filed 109 Homestead Road, Oldwick, NJ of NY (SSNY) on 10/15/12. Office East 83rd St., Apt. 17A, NY, NY 10028. process against LLC: c/o US Corp DE Secy. of State, 401 Federal St., 08858. Purpose: Any lawful activity. location: NY County. Princ. office of Purpose: any lawful activities. Agents, Inc, 7014 13th Ave, Ste 202, Ste. 4, Dover, DE 19901. Purpose: LLC: 60 Columbus Circle, NY, NY Bklyn, NY 11228. Principal business any lawful act or activity. NOTICE OF FORMATION OF KUDIA LLC Articles of Org. filed NY NOVAEOUS LLC. Arts of Org filed 10023. SSNY designated as agent of address: 143 Reade St, #3C, NY, NY LLC upon whom process against it Sec. of State (SSNY) 10/22/12. Office 10013. Purpose: any lawful act. NOTICE OF FORMATION OF KITALIANA with Secy of State of NY (SSNY) on in NY Co. SSNY desig. agent of LLC LLC. Arts of Org filed with Secy of 8/22/12. Office location: NY County. may be served. SSNY shall mail upon whom process may be served. NOTICE OF FORMATION OF State of NY (SSNY) on 7/9/12. Office SSNY designated as agent upon process to c/o Corporation Service SSNY shall mail copy of process to c/o ideaphore LLC. Arts of Org filed with location: NY County. SSNY designated whom process may be served. PO Co., 80 State St., Albany, NY 12207. Law offices of Steven M. Nachman, Secy of State of NY (SSNY) on as agent upon whom process may address to which SSNY shall mail Purpose: Any lawful activity. 9/6/12. Office location: NY County. be served and shall mail copy of copy of process against LLC: US 675 3rd Ave., 29th Fl, NY, NY 10017, Notice of Qualification of LKRT LLC. SSNY designated as agent upon process against LLC to principal Corp Agents, Inc., 7014 13th Ave, which is also the principal business Authority filed with Secy. of State of NY whom process may be served. PO business address: 26 King St #4, NY, Bklyn, NY 11228. Principal business location. Purpose: Any lawful purpose. (SSNY) on 10/10/12. Office location: address to which SSNY shall mail NY 10014. Purpose: any lawful act. address: 49 W 96 St., #3D, NY, NY NY County. LLC formed in Delaware Notice of Registration of SCLAR copy of process against LLC: 7014 10025. Purpose: any lawful act. (DE) on 10/03/12. Princ. office of ADLER LLP. Certificate filed Secy. of 13th Ave, Ste 202, Bklyn, NY, 11228 Notice of Formation of FOX HILL LLC: 136 E. 57th St., 13th Fl., NY, NY State of NY (SSNY) on 9/17/12. Off. loc.: c/o US Corp Agents, Inc. Principal PRESERVATION, L.P. Arts. of Org. filed Notice of Formation of Spruce 78 10022. SSNY designated as agent of NY County. SSNY designated as agent business address: 201 E 86th St, NY, with Secy. of State of NY (SSNY) on Member LLC, Art. of Org. filed Sec’y of LLC upon whom process against it of LLP upon whom process against it NY 10028. Purpose: any lawful act. 10/15/12. Office location: NY County. State (SSNY) 6/29/12. Office location: may be served. SSNY shall mail process Princ. office of LLC: 60 Columbus NY County. SSNY designated as may be served. SSNY shall mail to: c/o Ciampi LLC, 39 Broadway, NOTICE OF FORMATION OF Leder Circle, NY, NY 10023. Latest date on agent of LLC upon whom process process to L&R LLC at the princ. Ste. 520, NY, NY 10006. Purpose: Capital Management LLC. Arts of which the LLC may dissolve is against it may be served. SSNY shall office of the LLC. DE addr. of LLC: practice the profession of law. Org filed with Secy of State of NY 12/31/2111. SSNY designated as mail copy of process to Att: Joshua 2711 Centerville Rd., Ste. 400, (SSNY) on 9/24/12. Office location: agent of LLC upon whom process Crane, 902 Broadway, 18th Fl., NY, NY Wilmington, DE 19808. Arts. of Org. Notice of Formation of PEACH NY County. SSNY designated as against it may be served. SSNY shall 10010. Purpose: any lawful activities. filed with DE Secy. of State, Corp. PRODUCTIONS LLC. Arts. of Org. agent upon whom process may be mail process to c/o Corporation Div., P.O. Box 898, Dover, DE 19903. filed with Secy. of State of NY served. PO address to which SSNY Service Co., 80 State St., Albany, NY FRANKIE & COMPANY, LLC Articles Purpose: Any lawful activity. (SSNY) on 07/16/12. Office location: shall mail copy of process against 12207. Purpose: Any lawful activity. of Org. filed NY Sec. of State (SSNY) NY County. SSNY designated as LLC: c/o US Corp Agents, Inc., 7014 10/12/12. Office in NY Co. SSNY NOTICE OF FORMATION OF Nobody’s agent of LLC upon whom process 13th Ave., Ste 202, Bklyn, NY 11228. Notice of Formation of a Limited desig. agent of LLC upon whom Perfekt Media LLC. Articles of against it may be served. SSNY shall Principal business address: 150 Liability Company (LLC): Name: SALIS process may be served. SSNY shall Organization filed with the Secretary mail process to Josh Pultz, 457 W. Ocean Ave, Ste 4B, Bklyn, NY RETIREMENT AND PENSION PLAN mail copy of process to 263 E. 10th of State of NY (SSNY) on 09/04/2012. 143rd St., NY, NY 10031. Purpose: 11225. Purpose: any lawful act. LLC. Article of Organization filed with St., NY, NY 10009, which is also the Office location: NEW YORK County. Any lawful activity. the Secretary of State of New York principal business location. Purpose: SSNY has been designated as agent NOTICE OF FORMATION OF Ryder (SSNY) on 05/03/2012. Office Location: Any lawful purpose. upon whom process against it may NOTICE OF FORMATION of Bohemian Street LLC. Arts of Org filed with the New York County. SSNY has been be served. The Post Office address Bop, LLC. Arts. of Org. filed with NY Secy of State of NY (SSNY) on designated as agent of the LLC upon MANHATTAN HAVEN REALTY LLC, to which the SSNY shall mail a copy Dept. of State on 9/17/2012. Office 09/24/2012. Office location: NY whom process against it may be Arts. of Org. filed with the SSNY on of any process against the LLC location: NY County. Sec. of State County. SSNY designated as agent served. SSNY shall mail a copy of the 08/07/2012. Office loc: NY County. served upon him/her is: 40 W 24 St., designated agent of LLC upon whom upon whom process may be served process to: C/O SALIS RETIREMENT SSNY has been designated as agent #3F, NY, NY 10010. The principal process against it may be served and shall mail a copy of any process AND PENSION PLAN LLC, 42 upon whom process against the LLC business address of the LLC is: 40 and shall mail process to: 400 W. to the principal business address: Broadway Room 1133, New York, NY may be served. SSNY shall mail W 24 St., #3F, NY, NY 10010. 14th St., App. 2C, NY, NY 10014, 1641 Third Ave, Apt. 25K, N.Y., N.Y., 10004. Purpose: Any Lawful Purpose. process to: Christine O’Keefe, 445 Purpose: any lawful act or activity. principal business address. Purpose: 10128. Purpose: any lawful act. Latest date upon which LLC is to W. 162 St., NY, NY 10032. Purpose: any lawful activity. dissolve: No specific date. Any Lawful Purpose. Notice of Qualification of THE PEGASUS Notice of Qualification of 1565 GROUP L.L.C. Authority filed with Notice of Qualification of COSMOS BROADWAY LLC. Authority filed with Notice of Qualification of Lofton Notice of Qualification of CENT’ ANNI Secy. of State of NY (SSNY) on 09/26/12. STADIUM, LLC. Authority filed with Secy. of State of NY (SSNY) on Services Co, LLC. Authority filed with HOTEL, LLC. Authority filed with Secy. Office location: NY County. LLC Secy. of State of NY (SSNY) on 10/11/12. Office location: NY County. Secy. of State of NY (SSNY) on 9/26/12. of State of NY (SSNY) on 09/25/12. formed in Delaware (DE) on 03/16/07. 10/19/12. Office location: NY County. LLC formed in Delaware (DE) on Office location: NY County. LLC Office location: NY County. LLC Princ. office of LLC: 19 W. 21st St., LLC formed in Delaware (DE) on 10/10/12. SSNY designated as agent formed in Delaware (DE) on 2/1/10. formed in Delaware (DE) on 06/16/11. Ste. 902, NY, NY 10010. NYS fictitious 09/25/12. Princ. office of LLC: 75 of LLC upon whom process against SSNY designated as agent of LLC Princ. office of LLC: 19 W. 21st St., Ste. name: THE PEGASUS GROUP NY Greene St., 2nd Fl., NY, NY 10012. it may be served. SSNY shall mail upon whom process against it may be 902, NY, NY 10010. SSNY designated L.L.C. SSNY designated as agent of SSNY designated as agent of LLC process to c/o Corporation Service served. SSNY shall mail process to: as agent of LLC upon whom process LLC upon whom process against it upon whom process against it may be Co. (CSC), 80 State St., Albany, NY National Registered Agents, Inc., 111 against it may be served. SSNY shall may be served. SSNY shall mail served. SSNY shall mail process to 12207-2543, regd. agent upon whom Eighth Ave., NY, NY 10011. Address mail process to the LLC at the princ. process to the LLC at the princ. office the LLC at the addr. of its princ. office. and at which process may be served. to be maintained in DE: c/o National office of the LLC. DE addr. of LLC: of the LLC. DE addr. of LLC: c/o The DE addr. of LLC: 2711 Centerville DE addr. of LLC: c/o CSC, 2711 Registered Agents, Inc., 160 Greentree c/o Harvard Business Services, Inc., Corporation Trust Co., Corp. Trust Rd., Ste. 400, Wilmington, DE 19808. Centerville Rd., Ste. 400, Wilmington, Dr., Ste. 101, Dover, DE 19904. Arts 16192 Coastal Hwy., Lewes, DE Center, 1209 Orange St., Wilmington, Cert. of Form. filed with Jeffrey W. DE 19808. Arts. of Org. filed with of Org. filed with the DE Secretary of 19958. Arts. of Org. filed with Secy. DE 19801. Arts. of Org. filed with Secy. Bullock, DE Secy. of State, Townsend Secy. of State, Div. of Corps., State, John G. Townsend Bldg., 401 of State, State of DE, Secy. of State, of State, State of DE, Secy. of State, Bldg., 401 Federal St., Ste.3, Dover, Townsend Bldg., Dover, DE 19901. Federal St., Ste. 4, Dover, DE 19901. 401 Federal St., Ste. 4, Dover, DE 401 Federal St., Ste. 4, Dover, DE DE 19901. Purpose: Any lawful activity. Purpose: Any lawful activity. Purpose: any lawful activities. 19901. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity.

November 12, 2012 | Crain’s New York Business | 19 20121112-NEWS--0020-NAT-CCI-CN_-- 11/9/2012 1:25 PM Page 1

SMALL BUSINESS Plenty of work for cleanup firms. Now try to get paid Cash-flow problems confront some companies racing to undo Sandy’s harm newsbloomberg HOW TO FILE A POST-SANDY BY CARA S. TRAGER COMMERCIAL PROPERTY CLAIM ike Conlon’s busi- GETTING AN EARLY START is essential to speeding reimbursement for ness, 360 National damages. Restoration Ltd., According to Eqecat, a firm that tracks hurricanes and analyzes their is deluged with damage, estimated losses from Hurricane Sandy could be between jobs—literally. From 23rd Street to Wall Street $30 billion and $50 billion and economic damages between $10 billion and M $20 billion. The city is offering small and medium-size businesses whose and from Long Island to New Jersey, the 10-employee Manhattan firm is operations were interrupted an emergency loan of up to $10,000, but for pumping out water and dehumidify- many that won’t be nearly enough to get them up and running again. They will ing properties while assisting main- be relying heavily on their insurance coverage. tenance companies in cleaning up Flooding, a common problem from the storm, however, is “one of the more the soggy mess left behind by the challenging parts of insurance,” said Rick Miller, managing director of Aon overflowing Hudson and East rivers. Risk Solutions Property Practice. Aon has a substantial number of clients in Mr. Conlon said 360 National New York City, and its largest office is on Water Street (and was knocked out was still “getting a lot of phone calls” of service by the storm). So what do you do if you have a commercial property but was “handling the volume” of claim? Here’s some advice from Mr. Miller: work, thanks to alliances with other ● CALL YOUR AGENT RIGHT AWAY. Even if you haven’t completely assessed companies that have supplied his the storm’s property damage, contact your agent or broker—it’s best to use firm with additional labor and the claim hotline—and get the ball rolling. “Even if you can’t give specific equipment.A veteran of the restora- information, give a general assessment, like ‘The storeroom has several feet tion field who launched 360 in of water.’ Making contact is critical,” said Mr. Miller. Keep in mind that your 2011, Mr. Conlon said that a prof- insurance company is going to be dealing with thousands of claims, and the itable firm’s revenue can fluctuate process of adjusting those claims takes time. “The sooner you can get to your from year to year and can exceed insurance company, the better,” he said. $3 million annually. ● KEEP SPECIFIC RECORDS, AND PHOTOGRAPH DAMAGE. Ultimately, Throughout the city, small com- insurance claims require proof. Mr. Miller suggested writing down and panies providing disaster recovery describing everything you see that either is damaged or is causing damage, and tree-removal services are striv- whether it’s wrecked equipment, a broken freezer with food rotting, three feet ing to keep up with the onslaught of of water on the floor or a hole in the roof. Be as specific as you can, he said, business.With more work than they and take photos and videos documenting what’s been damaged. “If you can had ever imagined, these firms are

buck ennis bring some chronological order to what happened and how it happened, that doing everything from giving top GROWING DEMAND: To help storm-battered customers, garden expert Bill Logan has shifted his will help support your claim,” said Mr. Miller. “Having a lot of information may priority to clients in the most haz- focus to removing downed trees. also move you up in the adjustment process.” ardous circumstances to hiring more ● employees to handle the sudden in- EXPECT TO TAP SOME OF YOUR OWN RESOURCES. Flood claims can be flux of jobs. many small firms are already experi- and seek to repair them but opt to trickier than other claims, said Mr. Miller, and flood insurance is one of the encing cash-flow problems, cour- wait until they receive checks from more restricted coverage areas within property insurance. “You may have a Emergency loans tesy of hiring more workers and their insurance companies to pay certain damage limit for flood, and there can also be some qualifying But there’s a flip side to the post- buying additional equipment to for the work. In good times, it can situations—meaning if you’re in a flood-susceptible area, you may have Sandy boom in business. Many meet the demand for their services. take anywhere from 45 to 60 days limited coverage. So don’t rely only on the insurance because it may not cover companies are experiencing the In the past week,Rohit Arora,CEO for insurance firms to cut a check everything.” same challenges as some of the cus- of Biz2Credit, which specializes in for reconstruction projects, he said. If you can, get the process of restoration and recovery started on your tomers seeking their help—no elec- small business finance, said his With as many as 40 jobs under- own, said Mr. Miller. No matter what amount of money you ultimately receive, tricity,depleted fuel tanks and errat- Manhattan firm has helped 35 serv- way, including 25 that run “several with a catastrophic event like Sandy, it will likely take a while for the insurance ic phone service. hundred thousand and higher”—as company to process your claim. “It’s an unprecedented chal- in a large TriBeCa garage submerged —EILENE ZIMMERMAN lenge,” said Damon Gersh, presi- ‘Everyone’s in 16 feet of water—Mr. Gersh has dent of Manhattan-based Maxons partnered with a half-dozen compa- Restorations Inc., which regularly clock is ticking nies from beyond New York City to Queens,has brought in an addition- firm, which generates more than tackles flood, water, fire and smoke secure additional personnel and al worker to handle the upsurge in $1 million in annual revenue,is gen- damage for its customers. “Cell at the same equipment. And for his own arsenal business, which includes tree re- erally handling one to three jobs a service is spotty,and workers are liv- of machinery,which encompasses 20 moval and leaf pickup. But, accord- day.Urban has no plans to hire more ing in blackout conditions.” time’ water pumps and 15 generators, he ing to owner Erik Maldonado, fall- employees because its projects re- Mr. Gersh said business is “far has purchased more than 50 of each en trees blocking side streets and the quire “highly skilled” workers, Mr. outpacing” his 50-employee firm’s for an expenditure of more than gas shortage have cut into his com- Logan said. manpower and equipment. “With $300,000. pany’s ability to meet the surge in While Urban’s tree-removal fees 9/11,people had dust and could wait demand for its services. Mr. Mal- can go as high as $10,000, depend- a few days, but they can’t wait with Depleted gas tanks donado said the firm, which gener- ing on a tree’s size,condition and lo- water,” he said. “Everyone’s clock is ice companies, including tree- and “Our expenses have gone up ates annual revenue of $100,000, cation and whether equipment is re- ticking at the same time—commer- trash-removal firms, apply for loans tremendously, so having a good anticipated pulling its trucks off quired, the post-superstorm work, cial, industrial, homes, small busi- from banks and from the U.S. Fed- banking relationship at this point is the streets because of depleted said Mr. Logan, comes at the ex- nesses—and the jobs we have are eral Emergency Management pretty helpful,” said Mr. Gersh. Al- gas tanks. pense of designing gardens and fall very labor-intensive.” Agency through the U.S. Small though he declined to reveal the With a 12-person crew, Bill Lo- plantings, which represent “a great Making matters even worse, Business Administration. profitable firm’s annual revenues, he gan,president of Urban Arborists in deal” of the firm’s revenue. Mr. Arora anticipates an even said post-Sandy business could Brooklyn, said emergency “triage Tree-removal jobs also take their To sign up for Crain’s greater need for small business fi- double Maxons’ annual revenues work,” including removing a large toll on the human spirit. “It’s ex- SMALL BUSINESS newsletter, go to nancing in the next week to 10 days, within a two-month period. tulip tree with a vertical crack on the hausting and sad work,” said Mr. www.crainsnewyork.com/smallbiz. as more homeowners and business Three-employee firm Erik Mal- Lower East Side, represented his Logan.“We love trees and don’t like owners return to their properties donado Landscaping in Jamaica, immediate priority. The profitable them destroyed.”

20 | Crain’s New York Business | November 12, 2012 20121112-NEWS--0021-NAT-CCI-CN_-- 11/9/2012 7:13 PM Page 1

Holidays on ice for many retailers

Continued from Page 3 represent about 40% of his annual Some merchants are less worried lack flood insurance. With the cru- business, he said. about getting through the holidays cial holiday shopping season already Late last week, Mr. Tarpin was than they are about what comes af- underway, this could spell disaster still waiting for the power to be re- terward. Red Hook Winery, a four- for some. stored to his 11-year-old facility. year-old business on Pier 41, kept “Larger firms can withstand the Until it was back, he refused to take most of its bottled wines stored off- situation a little more than a small- a gamble on ordering additional in- site,where they safely remain for the er firm,” said Jack Kleinhenz, chief gredients,like Key limes,which take end-of-year selling season. Howev- DAMAGED GOODS: economist at the National Retail at least a week to arrive and often reer, the company’s equipment, along Thousands of Thanksgiving pie Federation. quire refrigeration. with 9,000 gallons of fermenting crusts were ruined by floodwaters at Brooklyn “For some smaller firms,” Mr. “We want to be ready, but it’s al- wine stored in barrels from the past bakery Steve’s Authentic. Kleinhenz added, “it could be dev- most like making a bad bet,” he said, three years of harvests, were not so astating.” noting that it means the risk of losing lucky. Since wine takes about three That was much the case for a re- out on potential sales to big-name years to make, the winery has no in the ability to make wine,” said lion. “I’m trying to determine sus- tailer called powerHouse Books, a clients like Peter Luger Steakhouse stock for the next two years. founder Mark Snyder, who esti- tainability moving forward and the 5,000-square-foot shop that has and Citarella. “We’re going to have a major gap mates his loss to be around $1 mil- feasibility of the business.” Ⅲ operated in Dumbo, Brooklyn, since 2006. Most of the damage in- flicted by Sandy’s flooding was in merchandise ordered for the holiday season. The irreplaceable items, including leather bags and letterpress cards and stationery made in small batches by local arti- sans, were supposed to go out on the sales floor in mid-November. In total, powerHouse lost all of its holiday merchandise,several pieces of display furniture like cabinetry, and electronics costing about $70,000. In another blow, a scheduled opening this month of a second store in Park Slope was pushed back. “The holidays, for book retailers in particular, are giant,” said shop owner Daniel Power.“In some cases, what a business will do between Thanksgiving and Christmas puts them into the black for the year.” The company is no stranger to heartache. It sustained a fire in Oc- tober 2011 for which it was insured. But Mr. Power said the company was not insured for flooding—all reimbursement will have to come out of pocket. He is already scheduling a fundraiser for later this month. A week without shoppers Businesses all around town,from lower Manhattan to Long Island City to Staten Island and the Rock- aways, were similarly affected. Many retailers at the South Street Seaport saw flooding, while others in what was temporarily dubbed “SoPo”—Manhattan south of 39th Street, where the power was out for five days—faced revenue declines from a week without shoppers. End of Century,a Chelsea-based shop and gallery, was closed for five days, which hampered sales projec- tions for the month. “As a small business, we really rely on every single day’s sales,” said founder Chan- tal Chadwick. Food businesses suffered, too, with many losing much more than a week’s worth of groceries and sales. Steve Tarpin, owner of Key lime pie purveyor Steve’s Authentic Inc. in Red Hook, threw out thousands of saltwater-soaked crusts he had planned to use for the Thanksgiving holiday. While Turkey Day is traditionally associated with pumpkin pie, Mr.Tarpin has been working in recent years to change that by printing “Save a pumpkin,buy a Key lime pie” stickers, for example. It had been working—sales for the holiday LISTEN to a discussion at CrainsNewYork.com/podcasts

November 12, 2012 | Crain’s New York Business | 21 20121112-NEWS--0022-NAT-CCI-CN_-- 11/9/2012 7:12 PM Page 1

IN THE BOROUGHS STATEN ISLAND

small businesses in the area. FROM “We’re excited for more busi- Saddest biz strip in NYC AROUND nesses to find out about us,” said Vice President Brian Blake.“A bank Continued from Page 3 nonetheless lost valu- THE CITY survives by making loans.” ler’s office. It’s unclear how much able time being with- —ken m. christensen money Staten Island will lose, but out power.According given the storm’s impact in a bor- to Consolidated Edi- MANHATTAN BRONX ough where every business counts, son’s outage map, the losses could have an outsize about 5,000 cus- Bank for financial Filling in the big effect. tomers on Staten Is- beginners bows Daffy’s retail gap On the island last week, Hylan land remained with- Boulevard served as a dividing line out power as of last CheckSpring Bank has cut the rib- Just four months after the news between the neighborhoods that week, many of them bon on its first branch in the middle broke that the big Daffy’s store at were decimated and those slightly businesses along Hy- of the financial crisis in the Bronx. the Bay Plaza Shopping Center in upland that were “merely” battered lan Boulevard. Despite the inauspicious timing,the the Bronx would be shuttered as by the flood. Even businesses bank’s efforts to persuade inner-city part of the discount chain’s bank- ali elkin Last Wednesday, snow began IN SANDY’S WAKE: Picking up the pieces on Staten Island. that can work at full New Yorkers to step up their finan- ruptcy, there was some good news coating the 10-foot-high piles of power are hurting. cial dealings from check-cashing last week. The lease on the 26,500- rotting furniture and rugs in front of LaBella Market- stores to a full-service bank have square-foot Daffy’s site is going on each house along the island’s hard- Chamber of Commerce and the place, near Tottenville, opened for paid off. In the past three years, the auction block. Bids are due by hit south shore. Cleanup crews Staten Island Economic Develop- the first time since the storm on CheckSpring has doubled the num- Dec. 7. scooped up muddy debris.On many ment Corp. recommend that busi- Thursday. The Italian specialty su- ber of its retail customers to 4,000 “Whenever a major block of windows, amid tattered Halloween nesses with losses not covered by in- permarket posted a note on its web- and septupled the ranks of its busi- space is vacant, it is not good for decorations, were yellow signs from surance seek loans from the SBA. site about delayed delivery orders ness customers to 245. neighboring businesses,” said Robin the city’s Department of Buildings due to the gas shortage. Now the bank will try for a sim- Abrams, executive vice president at declaring homes uninhabitable. ‘Pulling their hair out’ “We had no power for refrigera- ilar success at a branch it plans to real estate firm Lansco Corp.“It will While relief centers are provid- Most businesses were not pre- tion,we couldn’t get any deliveries in, open Nov.19 on Frederick Douglass be beneficial to other neighboring ing basic survival materials,borough pared for the unprecedented storm workers couldn’t make it due to the Boulevard in Harlem, another un- tenants to have the space leased and leaders are trying to ensure the sur- surge,said Frank Rivela,a Staten Is- rail system being down, and nobody derserved banking market. There, filled.” vival of local businesses.Many busi- land public claims adjuster. All he can actually drive to the store because more than a third of households While the auction’s timing ness owners never anticipated the can do for the uninsured is to refer there’s no gas,” said Nicholas Pesce, manage their finances without a means a big hole will remain in the high water, and were not insured them to the Federal Emergency the store’s assistant manager.“Half of bank account, compared with 13% local shopping fabric through the against it.Those without power as of Management Agency. Relief may Tottenville is a war zone.” of families citywide. holiday season, it will at least be Thursday lost precious revenue in not come anytime soon. Businesses Mr. Carbonaro and Mr. Pesce, Even though CheckSpring will short-lived. the nearly two weeks they have not will have to get in line behind all the though,counted their blessings.They be renamed Spring Bank by its The vacancy comes at a chal- operated. And the businesses that residents who have lost their homes. pointed out that they were lucky not Harlem debut, it will continue to lenging time for Bay Plaza, which are back open are waiting for cus- “If you’re a business owner on to have lost their homes,or to work on lure customers with discount lies in the shadow of the huge tomers—themselves waiting for ra- Hylan Boulevard, you didn’t have the south shore waterfront where check-cashing services and by Co-op City housing complex in the tioned gas—to return. flood insurance,” Mr. Rivela said. businesses, mainly restaurants, were forming partnerships with city north Bronx. A new shopping op- The U.S. Small Business Ad- “They never thought the water was destroyed. agencies and local financial literacy tion—the Mall at Bay Plaza, a ministration has opened a disaster going to come that far.They weren’t “People are walking down there groups, which have brought in two 780,000-square-foot center, is ex- recovery center at the College of in flood zones.” pulling their hair out of their head,” out of five of its customers in the pected to open nearby in 2014.That Staten Island that is aimed at busi- Businesses in buildings that did Mr.Carbonaro said.“They can’t be- Bronx. property has already signed Macy’s nesses.The SBA can give loans of up not suffer structural damage or lieve their whole life has been In Harlem, the bank also hopes and J.C. Penney as tenants. to $2 million. The Staten Island whose property was not ruined have washed away in one wave.” Ⅲ to benefit from the rising number of —adrianne pasquarelli Charities lose galas

Continued from Page 3 Mr. Martin thinks those attend- gling to carry out their work. (See ing the affair would have ponied up Helluva Town, page 25.) more funds. “The gala is where we “I’m very concerned about our get the face time with the donors,” fundraising now,” said Ms. Shapiro. he said.“It’s where we tell the stories She’s planning to make an extra plea that tug at the heartstrings.” for donations at Friday’s Power He said the group considered Lunch event. She never considered moving the party to another date, canceling the luncheon, because it but all the best nights and venues isn’t a big black-tie gala despite a were already booked.Now he is con- guest list chock-full of luminaries sidering raising the ticket price for like Bette Midler and Sandra Lee. the spring fundraiser, which attracts Plus,she added,“We really need the a younger crowd, to $250 from money.” $175. That’s still only half the price of the autumn event. The shortfall Special appeals won’t force the wholesale cancella- SPECIAL DELIVERY: Whole Foods is helping God’s Love We Deliver To encourage more giving, she tion of any programs, Mr. Martin replenish its supplies by setting up a food drive in its Manhattan stores.

will mention in her holiday said, since the money was a minor buck ennis fundraising note the help Citymeals part of the organization’s $20 mil- gave to storm victims. Others will lion budget. Yet he worries that he have an urgent need, and we are A social-media fundraising cam- There’s at least one charity that also make special appeals in might have to turn some people happy Whole Foods stepped up,” paign with the aim of collecting $10 doesn’t want additional funds—for fundraising letters or start new cam- away.“It’s a blow,” he said. said Mr. Ludwigson. million was slated to start on Veter- now, anyway. Muzzy Rosenblatt, paigns to replenish their coffers and Some organizations are finding Bill White, chairman and chief ans Day.It was postponed until after executive director of Bowery Resi- pantries. new resources from existing sup- executive of strategic consulting Thanksgiving because of the storm. dents’ Committee, which provides But the executives wonder if porters. God’s Love We Deliver, firm Constellations Group, hopes Now Mr. White worries that his housing for the needy, asked donors their efforts will be enough. The which brings meals to people with the public and corporations will an- pleas for money may get lost in the to give their money to charities Fortune Society, which provides AIDS and other illnesses, distrib- swer his call for help when he crush of nonprofits seeking holiday helping those hit hardest by Sandy. help to the formerly incarcerated, uted 8,000 meals it had in the freez- launches a major fundraiser on be- donations and aid for storm victims. BRC lost a van in the flooding, and was forced to cancel its gala slated er to those displaced by the storm, half of the Intrepid Fallen Heroes two of its buildings sustained mod- for Oct. 29. That cost the group an according to the nonprofit’s chief Fund. The organization needs to Saving lives erate damage, but Mr. Rosenblatt estimated $60,000 in donations, ac- development officer, David Lud- raise $70 million to build treatment “Sandy will affect our fundrais- put those losses in perspective. cording to Glenn Martin, its vice wigson.He estimated that the effort centers for veterans with brain in- ing,”he said.“But those charities are “We need help, but we are president of development. The or- cost about $70,000. juries and traumatic stress.The fund out there trying to save lives, and we nowhere as in need as others,”he ex- ganization had already raised Whole Foods is helping by set- has already raised $30 million and are trying to save lives, and you just plained. “Hopefully, when I really $165,000 toward the gala’s goal of ting up a food drive in its Manhat- started two of the nine planned have to respect where people decide need some help, people will be there $230,000. tan stores for the nonprofit. “We locations. to give.” for us.” Ⅲ

22 | Crain’s New York Business | November 12, 2012 20121112-NEWS--0023-NAT-CCI-CN_-- 11/9/2012 7:13 PM Page 1

A STOCK WITH JUICE often exclude the impact of named Shares of Consolidated Edison have good will he can muster,because lat- storms like Sandy because they are outperformed a key utilities stock er this month—maybe even before Thankless CEO job considered extraordinary events, index since Kevin Burke became everyone’s electricity is restored— noted Steve Mitnick, who was Gov. CEO in 2005. Con Ed is due to ask the state’s Pub- Continued from Page 1 moth task.Sandy knocked the pow- Eliot Spitzer’s chief energy adviser. Con Ed’s stock price, monthly close lic Service Commission for a rate in- round of grim news as last week’s er out for about one-third of Con “Unfortunately, the data is weak PHLX Utility Index crease in anticipation of its existing Nor’easter approached. That storm Ed’s customers, or five times more in measuring how quickly utilities $70 600 rate plan’s expiration in March.The knocked out an additional 55,000 than the previous record outage, set get the lights back on after major request seems sure to spark an up- customers. during last year’s Hurricane Irene. storms,”Mr.Mitnick said.“There is 60 550 roar. One way Mr. Cuomo could “I wish we could get everyone’s And while people stuck shivering in no real way to gauge what’s success 56.42 convey any unhappiness with Con power back,” said Mr. Burke with a the dark for an agonizingly long or failure.” 50 500 Ed’s post-Sandy performance sigh, in what must be a familiar re- time may disagree, Mr. Burke has a Of course, the longer the power would be to replace two of the five frain for the man with arguably the strong record managing Con Ed, outages go, the worse it is for Con 40 450 PSC commissioners who are serv- most challenging job in the city which he has run since 2005. Head- Ed and its customers. Mr. Burke ing beyond their terms with people these days.“We’re doing everything ing into this month, the company’s said his workdays stretch 20 hours 457.7 unfriendly to Con Ed. we can.” stock had returned more than dou- long,a whirl of meetings with every- 30 400 Still, significant rate increases Yet even as thousands of cold,fed- ble the S&P 500 and outperformed one from operations staff,city emer- 20 350 for Con Ed customers may be re- up customers approached wit’s end, gency-management officials and 8/31/05 11/1/12 quired to accommodate post- the people who could really cause Mr. even calls with the Pentagon. What Source: Bloomberg Sandy realities. Power lines may Burke angst—people like Gov. An- Mr. Burke’s sleep he gets in a room downstairs have to be buried, new distribution drew Cuomo or Mayor Michael from Con Ed’s command center is camps right after the storm,” said centers built and flood walls raised Bloomberg—have been relatively workdays can sometimes interrupted by a faulty Mr. Burke, who was awarded $11 to create an electrical system that mute. Mayor Bloomberg has saved fire alarm going off. million in pay last year by his board, can withstand the next big storm. his wrath for the Long Island Power stretch 20 The CEO, who suffered a minor which proxy advisory firm Glass Any of those projects, Mr. Burke Authority, which serves devastated heart attack in the spring of 2010, Lewis said is typical for a utility of gently reminds, will cost a fortune. Rockaway,Queens. Mr. Cuomo ear- hours long said he’s pleased that Con Ed has Con Ed’s size. For now,though,he is focused on lier in the month wrote a blistering been able to apply lessons learned the command-center wall that after letter to all the chief executives of from Irene and other lengthy power Twitter feed nearly quadrupled last week’s storm showed an unfor- utilities serving the New York region, outages of the past. The utility has also stepped up tunate rise in angry customers left in but mentioned only LIPA by name. For example, the Sandy fix-it job communicating with the public by the dark. Until the number on the “It seems clear he’s not talking its peer group by 65%. has required bringing in 5,000 em- hiring a couple of people in their 20s wall hits zero, he swears he’ll be on about Con Ed,”Mayor Bloomberg’s Mr. Burke also may be getting a ployees from other utilities to sup- to post regular updates on Twitter. the job day and night. former press secretary, Stu Loeser, pass from political leaders because plement Con Ed’s workforce of By late last week, the company’s “It’s a lot of f-,” Mr. Burke said said about the governor’s com- it’s hard to tell how Con Ed’s post- 13,000.To house them,Con Ed be- feed had grown to nearly 23,000 before thinking better of describing ments. Sandy performance compares with fore the storm hired a contractor to followers, from 6,500 immediately his often thankless role as “fun.” utilities in similar situations. Utili- install base camps at Rye Playland before the storm,and it is filled with “You get a lot of satisfaction out of A mammoth task ties like Con Ed for years have pro- and Citi Field filled with trailers comments from customers thank- doing this job.” Ⅲ One reason public officials may vided regulators with data measur- containing three-bunk beds and ing the utility for keeping them be laying off Con Ed for now is they ing the frequency and length of kitchen facilities. informed. LISTEN to a discussion at understand Mr. Burke has a mam- power failures, but those numbers “We were ready to go with the Mr.Burke is going to need all the CrainsNewYork.com/podcasts

November 12, 2012 | Crain’s New York Business | 23 20121112-NEWS--0024-NAT-CCI-CN_-- 11/9/2012 7:23 PM Page 1

Manhattan Institute, a conservative Fiscal cliff casts shadow over NY think tank. “Some people will inevitably leave New York, others won’t come Continued from Page 1 from 35%. The payroll tax reduc- mean a reduction in that aid by 4.7% to New York, and many others will balance even worse. tion, which took effect in 2009 as a a year.Categorical aid accounts for a alter their hiring and investment “The biggest impact is indeed on temporary fix to stimulate the slim 8.5% of the total federal aid that patterns in ways designed to mini- high-income individuals, and New economy, is something that is like- flows to New York City. mize their exposure to New York York has more high-income indi- ly to expire as well. Estate taxes taxes,” he said. viduals,” said Ken McCarthy,senior would be imposed on property Unnerving markets Democrats argued in a report re- economist at Cushman & Wake- starting at $1 million instead of $5 But these numbers are a round- leased last week that the changes field. About 85% of the fiscal cliff million, and top rates would rise to ing error compared with the havoc would be more burdensome on the can be pegged to tax increases, he 55% from 35%. that raising taxes could wreak on the “middle class.” Families in New said. “If you look at where the In terms of cuts,New York would city’s economy, policy experts said. York City earning $100,000 a year biggest hit is going to be, there’s no see a dip in the $7.6 billion it receives “The impending changes in fed- would pay an additional $4,000 an- newscom question it will be in cities like New annually in federal categorical aid— eral tax policy are more perilous for nually in taxes, according to the re- PRESIDENT BARACK OBAMA must resolve York.” money earmarked for a specific New York and its economy than any port published by Reps. Jerrold his differences with Speaker John Boehner. Without changes, capital gains project that flows into the city budg- of the cuts that would be carried out Nadler and Carolyn Maloney and would be taxed at 20%, and the top et.The state comptroller’s office has under the cliff scenario,” said E.J. Manhattan Borough President individual rate would rise to 39.6% estimated that the fiscal cliff would McMahon, a senior fellow at the Scott Stringer. For families that make up the bottom 20% of earners in New York, taxes will increase about 3.7%, largely because of the expiration of the earned income tax credit passed under President Barack Obama. But in a city where a quarter of a Start with Unum’s industry-leading* million dollars doesn’t have the buying power it would anywhere else in fi nancial protection benefi ts the country, a proposal by Demo- crats to raise taxes on families earning more than $250,000 could hit Bring a strong new dental plan New Yorkers hard. Leaders of Wall Street are also to the table concerned that a tanking market would send the finance industry into a tailspin if Washington drives Keep the essential ingredients of our the country off the cliff. appealing enrollment, education and “The effects of punting—showing the global economy that Wash- administrative programs ington’s unable to govern—could have unnerving effects on markets,” said Maya McGuineas,president of And serve up a fresh the Committee for a Responsible Federal Budget, which is working benefi ts package with the city’s business leaders. “The New York community is ahead of others on how unsettling this could be.” Mr. Obama’s former “car czar” Steven Rattner, JPMorgan Chase ‘The impending changes are more perilous for New York’

Vice Chairman James Lee and CEO Jamie Dimon, and Goldman Sachs CEO Lloyd Blankfein have been actively pressuring Washing- ton to fix the problem now, rather than kick it down the road. Political gamesmanship Mr. Obama said he would meet What do you look for in a benefi ts provider? A clear source of strong expertise, the right with Congress this week to start ne- resources and caring help when it’s needed most. As a leader in fi nancial protection gotiations to avoid the fiscal cliff. benefi ts, Unum has always provided intelligent and fl exible solutions to meet the needs of But some think New York City’s more than 100,000 companies. Now those solutions include dental coverage that offers a economy may be in the crosshairs of wide network through a partnership with United Concordia paired with our simplifi ed a cynical Washington political game. And New Yorkers on both enrollment, education and administrative tools. It’s a plan you can sink your teeth into. Find sides of the aisle have a shared inter- out more by visiting unum.com/dental. est in getting Washington to find compromise, economists said. DENTAL ° DISABILITY ° LIFE ° ACCIDENT ° CRITICAL ILLNESS “It will dampen financial markets,”said James Parrott,chief econ-

* #1 in Group disability, Gen Re 2010 U.S. Group Disability Market Survey, 2011. Based on inforce cases. omist of the liberal Fiscal Policy In- © 2012 Unum Group. All rights reserved. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. Dental plans are marketed by Unum, stitute. “And that will have a greater administered by United Concordia Companies, Inc. and underwritten by United Concordia Life and Health Insurance Company, United Concordia Dental Corporation of Alabama, impact on New York.” Ⅲ United Concordia Insurance Company of New York and United Concordia Insurance Company. For more information, please visit the “Disclaimers” link at www.ucci.com. NS12-043 LISTEN to a discussion at CrainsNewYork.com/podcasts

24 | Crain’s New York Business | November 12, 2012 20121112-NEWS--0025-NAT-CCI-CN_-- 11/9/2012 1:17 PM Page 1

HELLUVA TOWN INSIDE Source Cocktail Donations pour Bob Turner gets hit by in, post-Sandy Sandy, Barack PAGE 26 Superstorm Sandy is bringing out Out and About the spirit of giving in every quarter of New York. On Nov. 12, Voices United Choral the New York Islanders are hosting Festival PAGE 27 a free open skate at Nassau Coliseum, where the public can enjoy the ice—and make a donation to the American Red Cross’ Hurricane Sandy relief fund. “Hurricane Sandy devastated our local community, and we want to do everything we can to help,” said Islanders General Manager Garth Snow. The Dumbo Improvement District is holding a fundraiser on Nov. 14 at Galapagos Art Space to raise money for arts organizations and businesses in the hard-hit neighborhood. Tickets for the party start at $25. As of last Thursday, 165 had been sold. Alexandria Sica, executive director of the improvement district, said she expects to raise about $15,000. Though every penny helps, it’s just a drop in the bucket. Because of flooding, Ms. Sica estimated, the neighborhood’s businesses and arts groups have sustained around $1.5 million in losses. “I don’t think anyone ever imagined this amount of damage,” she said. “This is the worst thing that has ever happened to our neighborhood.” Events have been popping up on a daily basis. Last week, some 40 Williamsburg restaurants participated in a fundraising night where they gave about 20% of their proceeds to the Red Cross. The Jazz Foundation of America sponsored a benefit concert last Thursday to raise money for jazz musicians who have been affected. Nonprofits are even helping other nonprofits. On Nov. 18, the Queens Museum of Art is hosting a fundraiser to PLANNING AHEAD: bring in donations for the Linda Johnson has Rockaway Waterfront Alliance. created a strategic plan Celebrities are pitching in as to expand the Brooklyn well. Jerry Seinfeld added a Long Public Library. Island performance on Dec. 19 to

his current tour and will donate buck ennis all the proceeds to relief efforts. He had already pledged to donate the income from his Brooklyn and Staten Island performances. The Brooklyn Recovery Fund,a joint effort between the Brooklyn Community Foundation, the office Balancing the books of the Brooklyn borough president, and the Brooklyn Chamber of Commerce, has already raised $1 Brooklyn Public Library chief plans to bring institution into the million and plans to make major grants to nonprofits in Red Hook digital age while keeping literacy its core mission and Coney Island. “The number of people and companies supporting the fund is growing BY THERESA AGOVINO beyond our expectations,” said a Brooklyn Community he party would have been a blast. A cocktail reception at the oh-so-hip Foundation spokeswoman. —miriam kreinin souccar Wythe Hotel in Williamsburg would be followed by dancing and bowling at the Brooklyn Bowl across the street. Yet just like scores of other galas, the LOCAL HERO: fundraiser for the Brooklyn Public Library was postponed because of Sandy. Jerry Seinfeld ¶ Still, the nonprofit is forging ahead with a new strategic plan, to be revealed will donate proceeds of in the coming months, that it hopes will help it reach its goal of increasing area shows to the number of cardholders to 50% of the borough’s residents by 2017 as it Sandy relief. PERCENTAGE38%of Brooklyn strives to meet the changing role it plays in society. No longer just a place to residents with a library card borrow books and read newspapers, the library has evolved into more of a social-service agency, where people come to learn computer skills, meet their parole officers and find a job, though Tliteracy remains its core mission. ¶ “The question for us is how we stay relevant when everything around us is changing,” said Linda Johnson, who took the reins as president and chief executive of PERCENTAGE50%the Brooklyn the 60-branch system just over a year ago. Currently, about 38% of the borough’s residents have a Public Library would like to library card, which is roughly the same as in Queens. ¶ The challenges See BALANCING on Page 26 see with a card by 2017

bloomberg news November 12, 2012 | Crain’s New York Business | 25 20121112-NEWS--0026-NAT-CCI-CN_-- 11/9/2012 1:19 PM Page 1

SOURCE COCKTAIL: Balancing the books BOB TURNER by Chris Bragg Continued from Page 25 Constitution Center in Philadel- She recently hired a new head of Johnson faces are similar to those at phia and had also led the Free Li- development and plans to bring on the Queens and New York public library of Philadelphia Foundation. someone to specially raise money braries. Each of those is undergoing from Brooklyn-based companies. major renovations and looking at Quest for donations Ms. Johnson also has reached Congressman hit ways to serve the needs of its popu- All she needs now is funding. out to Russian billionaire and lation better at a time of major fund- “The library is a work in progress,” Brooklyn Nets owner Mikhail ing cuts. In Queens, for example, said Domenic Recchia, a Brooklyn Prokhorov, who recently donated there is a major effort to create spe- City Council member. “Linda has $1 million to the Brooklyn Acade- by Sandy, Barack cial places for teens. great ideas, but we have to raise my of Music. She has yet to receive Ms. Johnson has developed an more money than ever before.” a response. agenda, as well as a new logo, to re- “We have to figure out how to n 2011, Rep. Bob Turner, R- Do you wish you had evacuated instead? flect the shifts in the community of raise more money,” she said. “This Queens/Brooklyn, shook up The events wouldn’t have changed. I library users and in the publishing ‘We have to isn’t Manhattan,but there is a lot of the New York political world might have been a little drier.But I’m world, such as the introduction of wealth here.” when he ran for the seat vacat- not poorer for the experience. e-books. She is working toward a figure out how She has already tapped the writ- ed by Anthony Weiner. The host of goals, including opening to raise more ing community. At this year’s Istraight-talking retired television ex- What’s it like to lose your home? two smaller branches next year that fundraiser, the library was set to ecutive, responsible for creating The We built that house about 22 years will focus more on technology than honor three of Brooklyn’s literary Jerry Springer Show, turned his con- ago. It’s a great place. A nice view of books, populating the main library money’ set: Greg Clayman, publisher of gressional campaign into a referen- the ocean, very comfortable. We’re with a special teen section and News Corp.’s online-only publica- dum on President Barack Obama’s going to have to rebuild as a commu- training residents to take their tion The Daily; Bruce Norris, the support for Israel and became a hero nity, because we can’t have 131 indi- GEDs online,as will be required by Tony- and Pulitzer Prize-winning to conservatives nationwide. vidual contractors working.The type the state. playwright of Clybourne Park; and Mr. Turner’s seat was eliminated of house I have, I probably won’t be She is also putting a new twist Colson Whitehead, the acclaimed this spring, however, during redis- able to do. I’m sure we’ll have a nice on a library standard: storytelling. Indeed, Ms. Johnson will try to author of such novels as Sag Harbor. tricting, and he made an unsuccess- place, but not quite what we had. Librarians will continue to regale expand her mission despite budget Next year, the library plans a se- ful Republican primary run for U.S. youngsters with tales old and new. cuts of 17% over the past six fiscal ries of tributes to the late Brooklyn Senate, ending his short political ca- Republican Senate candidate Wendy However, the library will also offer years, to $73 million. Even more legend Maurice Sendak. Ms. John- reer. Then, during Superstorm Long, your former primary opponent, lost courses in digital storytelling as daunting, the ax is expected to fall son doesn’t want to divulge specifics, Sandy,Mr.Turner’s house was one of by a historic margin tonight. part of a new communications cen- again this year,at a time when the li- but it’s likely that the beloved char- about 130 in Breezy Point, Queens, It was absolutely essential for a cred- ter that will open next year. brary has $230 million in deferred acters from his Where the Wild that burned down. ible campaign, and somebody who Ms.Johnson has years of experi- maintenance costs. Fundraising Things Are will be dancing above the In an interview at a campaign had enough name recognition and ence in the field, which should help surged 45% last fiscal year,to $4 mil- library’s new logo at some point dur- party on election night in Rego Park, enough media credibility, and the fi- her achieve her lofty goals. She was lion, thanks mostly to one large gift, ing the festivities. The logo will be Queens,Mr.Turner was clearly more nances. But it winds up as a little appointed interim executive direc- but it remains below 2008 levels. revealed in the next few months. upset about Mr. Obama’s power play between up- tor of the library in July 2010 and Donations will have to jump winning another term WHERE state and downstate. They was officially awarded the top spot even higher for Ms. Johnson to Joint venture than about his smoldering get their candidate and in August 2011. The 53-year-old reach her goals, a greater challenge Part of the library’s new strate- home. THEY then leave her alone. No was formerly head of the National in the wake of Superstorm Sandy. gic plan is establishing programs to DRANK money,no media credibili- foster new talent. Ms. Johnson Do you have a new place for JOE ty, no organization. And wants to create writers’ rooms that the moment? ABBRACCIAMENTO just, “OK, kid, it’s yours.” GOING HIGH TECH IN BROOKLYN would allow aspiring authors to In Kew Gardens, we’re RESTAURANT keep their belongings at the li- renting a nice-size house. 62-96 You came into Congress THE BROOKLYN PUBLIC LIBRARY is clearly not your father’s (or mother’s) Woodhaven Blvd., brary.But there is a whole program And I went and got a suit. Queens because of former Rep. institution. to allow Brooklyn’s creative class to I bought two actually.And (718) 478-6463 Anthony Weiner’s Twitter Cardholders are increasingly using the library’s technological tools when express themselves beyond the I think I’ve got another scandal. It seems like quite a they visit. Wi-Fi usage sessions jumped 88%, to 206,184, for the fiscal year written word. Along with BRIC two in Washington. AMBIENCE: ride the past couple of years. An extremely old- ended June 30, 2012, compared with the previous year. Arts, another Brooklyn nonprofit, school Italian I ran because I saw how Meanwhile, downloadable checkouts (video, music, audiobooks and the library will offer classes on dig- When did you and your wife restaurant, filled we’re handling the regula- ebooks) more than doubled, to 326,000, during the same time period. From ital photography and digital story- get out of your house during with reporters tory problems in this July through October, the library recorded more than 150,000 downloadable telling through podcasting. Sandy? and weary country. As a business- volunteers for checkouts. The classes will be given at a The house we had was Republican man,this was the stupidest —THERESA AGOVINO new communications center that equipped to handle a se- Councilman Eric situation I could ever will open at the main branch next vere hurricane. We’ve had Ulrich’s campaign imagine. I’ve been dedi- year and will include 25 computer 22 years there now, a good for state Senate. cated to trying to make a stations, a recording studio and six deal of experience, and we (He lost.) difference. The culmina- meeting rooms. It was made possi- opted to ride it out. At the WHAT THEY tion of that, we’ll see ble by a $5 million donation from height of the storm we DRANK: tonight. Real soon. a foundation. were upstairs, each with Ⅲ Diet Coke “There is so much pressure on our respective Kindles, Ⅲ Gin and tonic Actually, did you see Fox News just called Ohio for Obama? nonprofits not to duplicate services, and candles,reading.I no- TAB: Open bar for so joining together was a great idea,” ticed the fire in an adjacent Mr. Ulrich’s cam- Fox News? Then it’s over. said Leslie Schultz, president of home. I knew with that paign, but Crain’s No, I didn’t hear that. My BRIC, which will provide the pro- flame that it would be here left a $5 tip whole purpose in Con- gramming. She said the two organ- in just another moment. gress was for a victory izations may expand the program to We evacuated and went toward tonight, and to get this country back other branches in the future. my daughter’s house. Water was up on track. It appears we’re not. And Ms. Johnson added that the li- to our shoulders, flames overhead, that is very, very disheartening. The brary is getting close to opening sparks, embers. Acrid smoke. The America I knew, I would like to pre- two smaller branches where people water was ferocious, and it was fairly serve. I don’t want to see us becom- could gain access to technology straining.The decks and other debris ing a semi-socialist operation like even though there might not be had collected, so you had to negoti- France. I think it’s a betrayal of our shelves and shelves of books. In ate your way through that. It took heritage and our grandchildren’s fu- fact,the last thing the library needs about a half-hour to get through,and ture.I’m taking this very seriously,in is more large branches, as Ms. it was only about 500 yards. case you didn’t notice [chuckles]. Ⅲ Johnson searches for ways to use the library’s real estate more effec- tively and efficiently.She has float- INSIDE TIP: Mr. Turner, with Mr. Ulrich’s ed the idea of selling or redevelop- ing some branches,but there are no support, has expressed a desire to become concrete plans for that yet. “We need to figure out how to the Queens Republican Party leader. Ⅲ newscom reduce our overhead,” she said.

26 | Crain’s New York Business | November 12, 2012 20121112-NEWS--0027-NAT-CCI-CN_-- 11/9/2012 1:20 PM Page 1

OUT AND SNAPS Hospital gala redirects gifts to employees hit by Sandy ABOUT by Emily Laermer and Miriam Kreinin Souccar

CULTURE FIX CAREER BUILDERS TUESDAY, NOVEMBER 13 The Women’s Media Center will host its 2012 WOMEN’S MEDIA AWARDS. The event will honor Pat Mitchell, president and chief executive of the Paley Center for Media; Martha Nelson, editorial director TUESDAY, NOVEMBER 13 of Time Inc.; and sisters and journalists Cherub Improv will host its SECOND Laura and Lisa Ling.The organization ANNUAL GALA. The event will feature works to make women and girls visible cocktails, an auction and a live and powerful in the media.The event is at performance by the Cherubs. Proceeds will 6 p.m. at Guastavino’s Midtown, 409 E. benefit the organization, which provides 59th St, between First Avenue and Sutton free performances and workshops to Place.Tickets start at $450. For more wireimage underserved communities. It is at 7 p.m. at information and to purchase tickets, call BOB WOODRUFF and DR. RUTH Tribeca Cinemas, 54 Varick St., at Laight (212) 721-4071 or visit mediaawards@ WESTHEIMER at the Lenox Hill annual Autumn Street.Tickets start at $125. For more womensmediacenter.com. Ball on Nov. 5. The event raised more than $2 information, visit www.cherubimprov.org/ million, which will now go to help employees of donate.html. WEDNESDAY, NOVEMBER 14, parent company North Shore-LIJ Health System AND THURSDAY, NOVEMBER 15 who were affected by Hurricane Sandy. More wireimage SATURDAY, NOVEMBER 17 The NY Entrepreneurs Business Net- than 500 workers lost their homes. ELIE WIESEL and ELLEN CROWN at the Lenox Hill Autumn Ball. New York Law School will host JUSTICE work will host its NY ENTREPRENEURS LOST: THE FIGHT TO FREE DAMIEN ECHOLS, BUSINESS EXPO. Industry experts will be an advance screening of the documentary on hand to discuss small businesses, ven- West of Memphis, and a panel discussion. ture-capital financing and new and The film tells the story of Damien Echols, emerging technology. Featured headline who spent 18 years on Arkansas’ death row speakers include author Peter Shankman; before being released. Discussions will Jeff Bussgang, a general partner at Fly- feature Mr. Echols, his defense attorneys, bridge Capital Partners; and Dan Porter, media expert Lonnie Soury and the general manager of Zynga New York. filmmakers Amy Berg and Lorri Davis. It will be held Wednesday from noon to 6 Registration is at 12:30 p.m., the screening p.m. and Thursday from 8:30 a.m. to 5 is at 1:15 p.m. and panels begin at 4:20 p.m. at the 69th Regiment Armory, 68 p.m. It is at 185 West Broadway, at Lexington Ave., between East 25th and Leonard Street. For more information, call East 26th streets. Show-floor admission (212) 431-2327 or visit www.nyls.edu/ is free. For more information, visit justicelost to register. www.nybusinessexpo.net. DON’T MISS VOICES UNITED FESTIVAL getty images / michael loccisano patrick mcmullan.com patrick MONDAY, NOVEMBER 12 (From left) JOHN WHITEHEAD, GEORGE RUPP, HENRY KISSINGER, MAYOR ANDREW ROSEN, DIANE VON FURSTENBERG and JIM GOLD St. Malachy’s-The Actors’ Chapel will host the MICHAEL BLOOMBERG and CYNTHIA WHITEHEAD at the International Rescue were honored at the 2012 Fashion Award Dinner to benefit VOICES UNITED CHORAL FESTIVAL, a musical Committee’s Freedom Award benefit on Nov. 7. The event raised a record Phoenix House on Nov. 7. The gala raised close to $1 million for extravaganza with more than 600 performers, $4 million. the nonprofit. including Broadway’s Linda Eder (left) and Ryan Silverman and conductor Eric Dale Knapp. Proceeds will benefit the outreach ministries of the Actors’ Chapel and other charity groups.The performance is at 7:30 p.m. at the Beacon Theatre, 2124 Broadway, at West 74th Street.Tickets start at $25 and can be purchased at www.ticketmaster.com. For more information, visit www.voicesunited.com.

OPENING FUNDRAISERS THURSDAY, NOVEMBER 15 MONDAY, NOVEMBER 12 The first comprehensive New York City Center will host the ENCORES! retrospective of artist GEORGE 20TH ANNIVERSARY GALA CELEBRATION, helping BELLOWS since 1966 will open at to fund the center’s artistic and educational the Metropolitan Museum of Art. programs. A cocktail hour begins at 6 p.m. at The exhibition will feature 120 City Center, 131 W. 55th St., between Sixth works, and Seventh avenues, and a performance including hosted by Raúl Esparza and Kelli O’Hara scenes of begins at 7 p.m. Dinner follows at the Plaza New York Hotel, 768 Fifth Ave., at West 58th Street. City and Tickets start at $30. For more information, depictions of visit www.nycitycenter.org. boxers. It runs through TUESDAY, NOVEMBER 13 Feb. 18 at The Center for an Urban Future will host its the museum, 1000 Fifth Ave., at ANNUAL GALA. The public-policy organization 82nd Street. Recommended works to improve the city’s overall health. The admission is $25 for adults, $17 for event is at 6:30 p.m. at Three Sixty, 10 seniors, $12 for students and free Desbrosses St., between Hudson and for members and children under 12. Greenwich streets. Tickets start at $250. For For more information, visit more information or to purchase tickets, visit www.metmuseum.org. www.cufgala.com.

R MARK YOUR CALENDAR… STARTING SATURDAY, DECEMBER 8 WORKS & PROCESS AT THE GUGGENHEIM will present 10 performances of PETER AND THE WOLF, combining the visual and performing arts as the children’s classic comes alive. Performances are scheduled for 2:30 p.m. and 4 p.m. on Saturday, Dec. 8, Sunday, Dec. 9, and Friday, Dec. 14, through Sunday, Dec. 16, at the Peter B. Lewis Theater at the Solomon R. Guggenheim Museum, 1071 Fifth Ave., at 88th Street. Tickets are $35 for the general public and $30 for members. For more information, visit www.worksandprocess.org.

November 12, 2012 | Crain’s New York Business | 27 emirates.com/usa

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