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TOP STORIES REPORT From small shops REAL ESTATE to Bloomie’s, Builders cope with retailers go green staff gap; top PAGE 2 architectural firms ® PAGE 19 Tough fights loom over key provisions in ’s new building code VOL. XXIII, NO. 16 WWW.NEWYORKBUSINESS.COM APRIL 16-22, 2007 PRICE: $3.00 PAGE 3 The city’s leading Bronfman universities show CITI INVESTORS PUSH their ethics are just quits IDB like ’s GREG DAVID, PAGE 13 FOR SMITH BARNEY SALE board after Web site operator Divesting crown jewel is key to value; CEO balks moves toward IPO probe as tech issues BY AARON ELSTEIN Charges he used gather momentum after last week’s tepid reaction to Citigroup Inc.’s cost-cutting plan, Chief Executive post to benefit PAGE 14 Charles Prince faces mounting pressure to dismantle the massive conglomerate assembled by longtime colleague Sanford Weill.The most logical place to start: Smith Barney, the himself are denied Spitzer ready to well-known and highly profitable retail brokerage arm. tackle brownfields, A growing investor chorus is arguing that Mr. Prince must do more BY ANNE MICHAUD AND judicial selection than take incremental steps to shore up the world’s largest TOM FREDRICKSON THE INSIDER, PAGE 37 financial institution. His muddled announcement—that the firm would cut 17,000 jobs, or 5% of its workforce, yet matthew bronfman,son of continue to raise head See INVESTORS on Page 7 prominent financier Edgar Bronf- BUSINESS LIVES man,resigned from the board of Is- THE MAGIC PILL NOT CUTTING IT: Charles Prince’s incremental moves don’t rate. rael Discount Bank of New York Friday, following a board inquiry Addicts stay on the job into whether he used his position to thanks to a remedy benefit himself. that spares them At a board meeting Friday methadone’s side morning, Mr. Bronfman and an- PAGE 39 effects other director, Michael Rubinoff, resigned after being asked to step down. A third board member, Chairman Leonard Grunstein,was voted off after he refused to resign. He did not attend the meeting. A spokeswoman for the bank MORE ON CITIGROUP says that the board of the bank’s Workers who got laid off go into parent company in Tel Aviv, Israel AT DEADLINE good job market Page 7 Discount Bank Ltd., told the New Editorial: City should fear what might come next Page 12 York board to replace any directors DON IMUS’ FORMER LISTENERS who had an ownership interest in ARE EXPECTED to scatter no any part of the company. That matter whom CBS Radio applies to the three board mem- chooses to replace the fired bers who were asked to resign; the shock jock. Starting today, remaining nine members are in- sports-talk hosts Mike and the 7, 3 0 0 1,600 $51.57 $51.60 dependent or are bank employ- Mad Dog will be the U.S. JOB CUTS NYC JOB CUTS STOCK PRICE, APRIL 9 STOCK PRICE, APRIL 13 ees, such as IDBNY Chief Execu-

temporary replacements in the bloomberg news See BRONFMAN on Page 8 morning drive-time slot that Mr. Imus had filled on WFAN for 30 years. “His audience is similar to Howard Stern’s—it’s a coalition,” says consultant Lots of lovers, but where to play? Robert Unmacht. Plugging the hole with sports programming could be the DelPrete, a managing partner and best way to build a new Private courts lost to development general manager of the club. audience. “They have a lot of as public venues become more crowded The sumptuous facility is the choices if they go all-sports,” exception in a city where private says Talkers magazine editor vious sign of a coming oasis of lux- tennis clubs have been shuttered at Michael Harrison. BY LISA FICKENSCHER ury fitness for New York’s agile an alarming rate in recent years. classes. The deteriorating situation for in- THE FRAUD AND BREACH OF two large white bubbles were The new facility, CityView door courts means that people de- FIDUCIARY DUTY lawsuit inflated over seven brand-new Racquet Club, sits on the roof of termined to play under cover must See AT DEADLINE on Page 2 tennis courts in City, the former Swingline Staples fac- pay exorbitant fees for a private Queens, this month, the first ob- tory. Expected to open this sum- space—as much as $125 an hour— mer, the tennis and squash center or reserve time for a public court

16 will operate like a country club, well in advance.

5 with spa rooms and an upscale The city’s public courts are also lounge and café with vistas of the becoming more crowded. Robert skyline. See TENNIS on Page 8 ELECTRONIC EDITION “CityView is the first new in- door tennis club to be built in New COURTING THE ELITE: Michael DelPrete, a York in the last 20 years, and it will managing partner in CityView Racquet Club, NEWSPAPER

says the time is right for a luxury tennis club. buck ennis

71486 01068 be the first of its kind,”says Michael 0 CNYB 04-16-07 A 2 4/13/2007 7:46 PM Page 1

AT DEADLINE

Continued from Page 1 wares online and in select against New York Stock department stores, plans to Exchange Chief Executive John launch a wedding ring collection Thain will go ahead, a this summer. Manhattan judge ruled late last week. At least four seat holders MANHATTAN’S INFORMATION have sued both the NYSE and TECHNOLOGY JOB MARKET Mr.Thain, charging that he lied slipped in the first quarter.The about the NYSE’s pending Pace/SkillProof IT Job Index merger with Archipelago at a declined by 11% from the breakfast meeting with floor previous quarter, though the traders just weeks before the index was still higher than it was deal was announced.The in the first quarter of 2006.The plaintiffs sold their seats based index, which tracks job on Mr.Thain’s denial about the openings in Manhattan, deal, missing out on millions in attributed the drop to softness gains.The judge dismissed the in the overall job market. cases against the NYSE itself. THE NEW YORK STOCK EXCHANGE THE CENTER FOR URBAN IS IN “ACTIVE DISCUSSIONS” COMMUNITY SERVICES has paid with at least two “promising” SALES FORCES OF NATURE: more than $5 million for two Vietnamese companies about MooShoes’ vegan wares are commercial condominiums on listing their shares on the Big so popular that Sara and Erica the top two floors of 2212 Third Board, says an NYSE . Kubersky (from left) are moving the store to a bigger Ave., at the corner of East 121st One of Vietnam’s largest location. Street in .The enterprises, Vinamilk, listed on nonprofit, which provides Singapore’s exchange last services to the homeless, will month. The NYSE has been relocate to the 24,000-square- working to cultivate ties with foot space from 120 Wall St. Vietnam, which has one of the Colliers ABR was the exclusive fastest-growing economies in broker on the deal. Asia. The nation’s former prime minister, Phan Van Khai, rang JEWELRY DESIGNER ALEX WOO IS the opening bell at the buck ennis BREAKING INTO the bridal exchange during a visit to New market with a pendant York two years ago. Last collection that features lower- month, NYSE Chief Executive case initials.The pendants, John Thain wrote to Vietnam’s which can be engraved with the current prime minister, Nguyen Greening of retailers wedding date, start at $128 for Tan Dung, offering to exchange silver and top out at $2,200 for information and share the triple-diamond version. Ms. experience with Vietnam and Eco-friendly goods, practices win patrons; only a fad? Woo, who has found success the country’s booming among celebrities by selling her securities market. I BY ELISABETH BUTLER

CORRECTIONS as earth day approaches, green is becoming the new black in New York. Retailers About.com’s 600 experts post a total of 3,000 new articles a week. An April 9 article throughout the city are cashing in on the growing crowd of consumers who want eco-friendly misstated the frequency of new postings. apparel and other goods. Kipton Cronkite is a distant relation of Walter Cronkite’s. Their relationship was misstated in the April 2 article “For rich kids, it’s only money.” Small stores such as Kaight and MooShoes, founded to cater to environmentally conscious shoppers, are ringing up more sales. Department stores like Bloomingdale’s are stocking jeans made with organic cotton. Other retailers are quietly changing business practices to become more THIS WEEK IN CRAIN’S eco-friendly and connect with customers who care: The Museum of Modern Art Design Store recently replaced its gift boxes with 100% biodegradable versions made of minerals, not trees.

SMALL BUSINESS ------11 Consumers in their 20s and baby boomers who remember Woodstock values are behind See ECO-FRIENDLY RETAILERS on Page 8 GREG DAVID ------13 NEIGHBORHOOD

JOURNAL------16 REPORT: REAL ESTATE ------19 NYPD, nightclubs in talks TOP ARCHITECTS ------26 Seeking common Bar and club owners have long also at issue. 41 DEALS------28 complained that the NYPD has not “It [27th Sreet] is still like a war ground over safety, been receptive to the problems they zone that we think needs to be toned THE WEEKS AHEAD ------29 face controlling unruly clubgoers. down a bit,” says Mr. Bookman, re- underage drinking The relationship between officers ferring to mounted officers pa- CLASSIFIEDS ------32 at Chelsea hot spots and club owners has historically trolling the area and flashing signs WEEK IN REVIEW ------34 been adversarial. warning clubgoers about underage “These are not show meetings,’’ drinking and excessive inebriation. THE INSIDER------37 BY LISA FICKENSCHER says Robert Bookman,a lawyer who In February, the City Council represents the association. “They passed legislation aimed at curtail- BUSINESS LIVES------39 top officials of the New York Po- are listening to us, and we are not ing underage drinking and making CORPORATE LADDER------41 lice Department and the New York [seen as] the enemy.” clubs safer. The law requires clubs Nightlife Association will meet this Commissioner Ray Kelly has at- and bars to install security cameras EXECUTIVE MOVES------42 43 week in a continuing effort to im- tended one of the meetings. at their entrances and exits and BOB LAPE ------43 prove relations between the two Among the hot-button issues cracks down on businesses that sell groups. the groups are discussing are club fake IDs. vol. xxiii, no. 16, april 16, 2007—Crain’s New York Business (issn 8756-789x) is published weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals The meetings, which began two owners’ fear of getting citations if The law also allows clubs to hire postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address months ago, are an outgrowth of last they call the police during an inci- and pay for independent safety changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a October’s Nightlife Safety Summit dent at a club. The atmosphere cre- monitors in lieu of having their al- copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents convened by City Council Speaker ated by the heavy police presence on cohol licenses suspended. copyright 2007 by Crain Communications Inc. All rights reserved. ChristineQuinn after a series of high- West 27th Street in Chelsea, com- profile violent incidents at clubs. monly referred to as Club Row, is COMMENTS? [email protected]

2 | Crain’s New York Business | April 16, 2007 CNYB 04-16-07 A 3 4/13/2007 6:55 PM Page 1 Building code tussle

of commercial buildings to pressur- Key provisions LONG AND WINDING ROAD ize stairwells,which entails installing expected to spark Time line for New York City’s revised building code proposal. CONSENSUS: fans and other systems to blow air The revision into stairwells to prevent them from a fight when proposal was “an filling with smoke in a fire. 2003 2004 2007 inclusive hits City Council DOB accepts Interna- DOB establishes seven New code to be process,” says Such a move would add as much tional Building Code as advisory panels to assist presented in late April for Buildings as $1.5 million to construction costs, basis for new code, technical committees approval by City Council; Commissioner Ms. Davenport says. The group is BY JULIE SATOW Patricia also against a rule that would require creates 13 technical becomes effective Lancaster. committees one year after approval putting emergency generators in a battle between labor unions residential high-rises, as well as in- and the real estate industry is likely tercom systems to connect apart- to erupt later this month over key ments to their lobbies and the local provisions of a proposed overhaul of fire department. the city’s building code. The proposal, to be presented to Sept. 11 consciousness the City Council, will culminate “we desperately need to modern- four years of behind-the-scenes ize our code, but as far as saying we work led by the Department of support every detail in it—no,” Ms. Buildings. The DNA for all con- Davenport says. struction in New York,the code is an Industry leaders and city officials archaic document so complicated rallied to the idea of updating the that it has spawned a cottage indus- code after the Sept.11 attacks,which try of consultants to interpret it. Its brought attention to high-rise con- revamp—the first in 40 years—in- struction.Ironically,some post-Sept. volved 400 professionals and david neff 11 suggestions, like requiring wider 300,000 hours of meetings. stairwells in new buildings, didn’t

Though the new code contains buck ennis make it into the revision. hundreds of technical changes that But the final plan contains sever- probably won’t spark debate, insid- More common are wire systems, “This is a matter of public safe- Marolyn Davenport, a senior vice al measures that are widely praised ers say certain revisions will be the which are cheaper and easier to in- ty,” says Robert Ledwith, business president at the Real Estate Board as important improvements.For ex- subject of intense lobbying. stall, but black iron is fire-retardant manager for the 1,500-member of New York. ample, it would allow products and “There is going to be a battle roy- and more solid. Metallic Lathers and Reinforcing Buildings Commissioner Patri- materials commonly used in the rest al between competing interests,” Ironworkers Local 46. cia Lancaster says that despite the of the country to be used here with- says Glenn Corbett, an associate Black iron controversy Mayor Michael Bloomberg re- inevitable conflicts, the proposed out a lengthy approval process. It professor of fire science at John Jay developers argue that black iron cently endorsed making black iron code is a true compromise.“We cre- also organizes information into College of Criminal Justice and a adds $2 a square foot to construction part of the new code rather than risk ated a consensus-building model easy-to-read chapters and calls for a member of a committee that worked costs and that wire systems have losing union support for the overall where we involved all the different comprehensive review every three on the revision. been proved safe.The unions repre- revision, sources say. His decision stakeholders,” she says. “It was an years. The most serious fight is expect- senting firefighters and ceiling has riled developers, who plan to inclusive process, and we listened to “If you look at the new code, it is ed to be over the use of so-called builders say that eliminating the press the City Council to exclude everyone.” very approachable, so even a layper- black iron in ceilings in office build- material would save only nine cents the material. Black iron is not the only likely son can understand it,” Ms. Lan- ings.New York City is one of the few a square foot and would endanger “Black iron increases the cost of hot-button issue. caster says. places in the country where the ma- the lives of office workers and doing business, and we will certain- Among the items REBNY op- terial is still used for that purpose. firefighters. ly oppose this provision,” says poses is one that would force owners COMMENTS? [email protected]

the previous two years. “Ultimately, things can- not go up forever,and anyone New Meridian Capital over 40 knows that,” says Joe Gore, a vice president with ARCS Commercial Mort- gage. “My gut feeling is that we’ll see rising delinquencies chairman looks to IPO on collateralized mortgage- backed securities.”

Meridian more attractive in an IPO. real estate deals. It has eight offices Bull market But competitive He became familiar with the Man- around the country. meridian and Indepen- market may mean hattan-based company while he was In New York, Meridian is the dence spurred each other to at Independence,which owned more dominant force in packaging mort- enormous growth amid New chances for big than a third of Meridian. gages on rent-regulated apartment York’s bull real estate market, payday are over “The great opportunity for me properties. It boasts strong relation- and some firms complained will be to take Meridian to a new ships with large savings banks, in- that Independence favored place and maybe make some money cluding New York Community Meridian brokers. BY TOM FREDRICKSON EQUITY PRIZE: later in an equity offering,” says Mr. Bancorp. Additionally, it does busi- Alan Fishman says The relationship deep- Fishman, who recently retired as ness with Wall Street lenders,which the move is an ened in 1999, when Inde- alan fishman,the former chief ex- chief operating officer of Sovereign rely on the dependable cash flows in opportunity “to take pendence bought a 20% in- ecutive of Independence Commu- Bancorp, which acquired Indepen- the city’s rent-stabilized buildings Meridian to a new terest in Meridian; it later nity Bank Corp., joins Meridian dence last year in a $3.6 billion buy- to add safety to mortgage-backed place.” upped the stake to 35%.

Capital Group today as chairman out. bonds. buck ennis Now, however, it’s un- with an eye toward taking the com- Meridian was formed in 1991 by clear if Sovereign, Meridi- mercial mortgage broker public the hard-charging Ralph Herzka Adding products cial mortgage business has become an’s new minority owner, will main- within two years. and three partners. It ranks as the mr. fishman’s tasks will include more competitive.The city’s family- tain commercial lending at the same Mr.Fishman,61,says he will play country’s third-largest mortgage adding products like mezzanine run brokers are vying intensely with level. Observers say Meridian may a more active role than the typical broker, according to Commercial debt and equity sales,as well as over- aggressive outside lenders—Wa- be trying to add new business lines chairman,coming in to work three or Property News. The scrappy, 250- seeing expansion to new geograph- chovia and Washington Mutual— in the event that Sovereign de-em- four days a week. He will use his employee outfit structures mort- ic markets. that are expanding here and that in- phasizes commercial lending and knowledge of public companies and gages and finds lenders for a large But it may prove too late for creasingly bypass brokers to make shrinks the pipeline from Meridian. his institutional contacts to help de- number of apartment building Meridian to take full advantage of direct loans. Meridian’s growth velop new products that will make transactions and other commercial the public markets, as the commer- slowed to 6% last year from 34% in COMMENTS? [email protected]

April 16, 2007 | Crain’s New York Business | 3 CNYB 04-16-07 A 4 4/13/2007 7:49 PM Page 1

IN THE MARKETS HIGHLIGHTS REEL After 25-year wait, +0.1% drug firm finds its Rx The Bloomberg/ Crain’s New The company narrowed its net losses to Tarceva’s access to this market and its York Index OSI revenues from 37 cents a share last year from $1.48 a anticipated entrance into Japan later this rose 0.1%, cancer drug soar share in 2005. Revenues, meanwhile, year are among several factors expected to to end the more than doubled to give OSI revenues a week at as shares rate a buy $376 million. This powerful push. Tarce- 390. The ➡ year, analysts expect va sales will likely get S&P 500 that revenues will an additional boost as Index rose BY AMANDA FUNG come to $331 million, doctors expand the 0.6%, even after the sale of a drug’s use and the du- closing at he long wait at OSI Phar- money-losing unit. ration of treatment. 1453. maceuticals Inc. may be over Almost all of 2007 The company will at last. revenues will come also get a lift from ris- The biotechnology com- from royalties paid to ing royalties on several pany’s management predicts OSI by Tarceva’s co- of its diabetes drugs. RISERS Tthat this year’s per-share earnings will hit marketers, Genen- Januvia and two drugs 5-DAY 1-MONTH 3-MONTH CLOSING $1—the first profit posted by the firm tech Inc. in the Unit- likely to win approval % CHANGE % CHANGE % CHANGE PRICE since it was founded nearly a quarter of a ed States and Roche later this year could Schering-Plough +8.0% +20.0% +14.6% $27.94 century ago. internationally. Total bring in at least $100 Much of the credit goes to wonder Tarceva sales are pro- million annually as 1-800-Flowers +7.9% +18.2% +40.7% $8.50 drug Tarceva, proven effective against jected to reach $850 soon as 2008. Monster Worldwide +7.4% -8.1% -11.5% $43.89 cancers of the pancreas and lungs. As million this year, up Those expected Market cap $2.0 billion Bowne +6.5% +17.7% +7.2% $16.94 more doctors around the world write 31% from levels in gains will help counter Quest Diagnostics +5.9% +11.4% +8.3% $54.31 Tarceva prescriptions, OSI’s revenues 2006, when sales dou- Revenue per share $6.60 OSI’s one huge mis- have soared; so has its share price, which bled to $650 million. Total cash $207 million step. The company is up 30.6% in the past year.Since the can- OSI has put to- paid $650 million in SINKERS cer drug is just now beginning to win gether this winning 2005 to purchase Eye- 5-DAY 1-MONTH 3-MONTH CLOSING widespread acceptance, investors would streak despite fierce tech Pharmaceuticals % CHANGE % CHANGE % CHANGE PRICE be wise to prescribe OSI shares for what competition in the cancer drug market. Inc.—largely to gain control of Macugen, Children’s Place -8.7% -8.3% -13.7% $50.61 ails their portfolios. Just last week, ImClone Systems Inc.’s a drug for the treatment of blindness in New York & Co. -8.2% -3.8% -1.0% $14.45 “OSI has a clear blockbuster in Tarce- Erbitux,Tarceva’s biggest rival,was found the elderly. Within months, however, va,” says Caroline Stewart, a senior re- not to be effective in treating pancreatic Genentech released Lucentis, which Maidenform Brands -6.1% +11.1% +18.5% $22.01 search analyst at Piper Jaffray, who initi- cancer.That news came three months af- proved far more effective. OSI plans to JetBlue Airways -4.8% -5.7% -32.5% $11.19 ated coverage last month on OSI with an ter the European Commission approved sell off Eyetech later this year. Starwood Hotels -3.3% +7.3% +7.4% $67.78 “outperform”rating and a $42 price target. Tarceva for the treatment of pancreatic Tarceva has already bolstered OSI. cancer in the vast European region. COMMENTS? [email protected]

STOCKS TO WATCH Rising Aéropostale shares give analysts bad heartburn and investors big profits LAST WEEK, shares of teen retailer Aéropostale rose 2%. Not bad, given that the shares are up a giddy 39% so far in 2007—a climb so steep that a Citigroup analyst slapped the shares with a rock- bottom “sell” rating on Thursday. The company announced last week that same-store sales rose 16% in March. Trouble is that few things are as tough as nailing the teen market quarter in and quarter out. For months, Arbitron has been telling investors that its Portable People Meters, designed to better track radio-listening habits, have been eating into profits, pushing them down in three of the last four quarters. Meanwhile, the stock price has gone the other way, rising 47% in the past year. Arbitron is expected to post yet another decline this week. Clearly, somebody believes those new meters will be a hit—or that the company will be bought out. It once appeared that leaving a major investment bank and founding a high- powered boutique was a surefire path to unbelievable riches. No more. One of the highfliers, Greenhill & Co., has shed 20% of its value this year, making it the worst-performing New York-based financial stock. The reason is that in more difficult markets, a lack of diversification and of a deep bench of talent make investors queasy. charts: lindström bekka

4 | Crain’s New York Business | April 16, 2007 Project8 4/10/07 4:29 PM Page 1 CNYB 04-16-07 A 6 4/13/2007 6:10 PM Page 1 B erlin Boston BuenosAires Rockefeller Center Chicago

Frankfurt NEW YORK,NEW YORK welcomes the following renewal edited by Valerie Block London

LosAngeles Premiere Radio

Madrid Networks, Inc. Dumplings Web site, and [its popularity] was Milwaukee represented by the first sign that Project Runway Clyde Reetz of go to school was gaining some traction,” says Jason Klarman, who oversees Bravo’s CBRE NewYork in between cramming for digital properties. exams and late-night partying, Mr. Gunn’s star has been rising

NorthernVirginia New York University students will ever since.The former head of the be noshing on Asian goodies when fashion design department at Rickshaw Dumpling Bar comes to Parsons recently left academia to for leasing information, please contact: the neighborhood soon. become chief creative officer at Liz Peter R.C. Brindley Paris The gourmet fast-food eatery Claiborne. Later this year, he’ll get Theodore J. Koltis Philadelphia will open its second Manhattan his own fashion makeover series, Todd D. Silverman location at 53 E. Eighth St. this Tim Gunn’s Guide to Style, based David M.Taylor summer. Co-owner Kenny Lao—an on the book.

SanFrancisco NYU alumnus—hopes that the The show is in production, and new spot will showcase Rickshaw’s the book’s first chapter will provide appeal as a student joint. a “preview,” Mr. Klarman says. ap images SaoPaulo “I’d like each store to prove 212.715.0300 Checking out something different” to investors, Seattle says Mr. Lao, who opened his first Party manners Rickshaw bar two years ago on

SiliconValley Nets real estate not on display West 23rd Street. “There is he first glimpses of potential for us to go into college revelers had a rough time at towns.” some of New York’s most Sydney the inside of the New In the meantime, Mr. Lao happening events last week. At Jersey Nets Barclays plans to open two other dumpling Time Out’s Eat Out Awards at New WashingtonDC T Center in will be bars in the city this year but World Stages on Monday, dozens available this fall, when doesn’t have locations yet. of attendees were turned away from Rickshaw joins recently opened the bar empty-handed after waiting developer and Nets owner Così and Chipotle shops on at least 15 minutes for a beverage. Bruce Ratner opens a Eighth Street. Landlord Rose Just four bartenders had been hired midtown showroom to sell Associates, which owns a chunk of to accommodate a crowd of 500. luxury suites. real estate in the area, wants to “I’m stunned and shocked,” attract even more restaurants. said nominee Niall Grant, a partner The Frank Gehry-designed “We’ve made a strategic decision in Tuck Shop and one of those suites will collectively to bring more food to the block,” who never got a drink. generate tens of millions of says Bruce Spiegel, Rose senior On Thursday, Sundance managing director. Channel celebrated the launch of dollars a year.The Nets say Green, a weekly programming guests won’t be able to pivot block spearheaded by Robert Weiser is pleased to announce that without hitting a -screen Gunn’s very nice Redford. After watching Crude TV or an expansive spread of new project Awakening: the Oil Crash, a dire documentary, guests food and booze. bravo is adding a were invited to get Mitchell J. The showroom will be in page—many pages, in festive amid the finery at the New York Times Co. fact—to its Tim Gunn ABC Carpet & Home. building going up at 620 style-advice empire. When those partiers Mertz Starting today, chatted through ABC joins the firm as partner. Eighth Ave., which made BravoTV.com will owner Paulette Cole’s for an easy lease negotiation: begin carrying the first eco-speech, Sundance Mr. Ratner is developing chapter of Tim Gunn: A President Larry Aidem Guide to Quality,Taste grabbed the micro- New York City both projects. Potential 135 West 50th Street Mr. Mertz possesses more than 30 years & Style.The book by phone and spewed New York, NY 10020 of experience providing accounting buyers will see a model of the fashion guru and rather surprising Tel 212.812.7000 star of the network’s hit language for an Fax 212.375.6888 services to public and private companies, one of the 118 suites with 16 seats.Twelve other suites Project Runway is due executive, ending his Long Island particularly manufacturers, distributors, out next month from Abrams hissy fit with “shut the f--- up.” 3000 Marcus Avenue service organizations, hedge funds, and between the locker rooms, Image. Mr. Gunn has been part of Lake Success, NY 11042 Jason Kidd Tel 516.488.1200 mortgage companies. Mr. Mertz serves as where (above) the Bravo brand since 2004. Contributors: Erik Engquist, Fax 516.488.1238 “He had the first blog on the Lisa Fickenscher, Matthew Flamm chairman of the SEC Practice Committee et al. unwind, will have eight Westchester 660 White Plains Road of the New York State Society of Certified courtside seats. Tarrytown, NY 10591 “This sales center will Tel 914.333.0555 Public Accountants and possesses COURSE CORRECTION Fax 914.333.0556 significant experience with the Securities show firsthand what the New Jersey and Exchange Commission reporting experience and amenities HAMPTONS HABITUÉS are used to paying up for their pleasures, but 399 Thornall Street will be like at the Barclays members of Bridgehampton’s Bridge Golf Course’s new Roger Ferris- Edison, NJ 08837 requirements and Sarbanes-Oxley Tel 732.549.2800 designed clubhouse plunked down an eye-popping $750,000 initiation compliance. Center,” Mr. Ratner says. Fax 732.549.2898 If corporate New York fee. Some of the members of the club, which opens in June: www.weiserLLP.com plunks down the hefty fees LYOR COHEN , Warner Music Group to entertain clients across the Chairman GREENBERG Chairman, Bear Stearns For additional information, East River, the cash would contact Mitchell J. Mertz, CPA dwarf Mr. Ratner’s legal HOWARD LUTNICK Chairman, Cantor Fitzgerald at 212.375.6750. or PETER MORTON Co-founder, Hard Rock Café Weiser LLP expenses from lawsuits [email protected] Certified Public Accountants against the controversial ANTONIO “L.A.” REID Chairman, Island DefJam Atlantic Yards project.

6 | Crain’s New York Business | April 16, 2007 CNYB 04-16-07 A 7 4/13/2007 6:07 PM Page 1

in assets,decamped to Morgan Stan- ley’s office in Westport, Conn. The Investors eye Smith Barney sale firm also picked off Stephen Beni- nati and Bernard Kraisman, who Continued from Page 1 brokerage firm for individual in- joined a midtown branch, bringing count—failed to resonate with Wall CITI’S OPTIONS vestors. With a sales force of 13,000 $107 million in client assets. Frank Street. brokers managing $1.2 trillion in Lourenso and Gary Stevens, who “Citi is a proven failure,”says Bill If last week’s cuts don’t move client assets,Smith Barney generat- manage $357 million in assets, de- Smith, chief executive of Smith As- Citigroup’s stock price, the bank ed $1 billion of net income last year fected in February to Morgan Stan- set Management and one of Mr. could try other moves: on $8.2 billion in sales.“If you had to ley’s office in Jericho, L.I. Prince’s loudest MAKING DEEPER REDUCTIONS pick one thing for Citigroup to di- Citigroup: Fighting back critics. “The only in head count vest, Smith Barney would be it,” says What way to create value Ryan Barnes, an analyst who con- smith barney officials say that now? is to break it up.” BREAKING UP THE COMPANY tributes to 247wallst.com,a Web site they’ve offset those losses by recruit- by spinning off the credit card or that comments on stocks. Citigroup in- ing teams from other firms, includ- gettyimages division sists that the idea Time may be of the essence: Key ing two top brokers from TD Amer- TOWERING INFERNO: Citigroup’s layoffs may of spinning off or selling Smith Bar- BUYING A BIG U.S. BANK to Smith Barney brokers are jumping itrade who each manage about $400 not be enough to fire up its stock price. ney is a nonstarter. increase the size of its domestic ship because they’re tired of waiting million of assets. Employee defec- “It’s not happening,” a banking business for a turnaround. Rick Peterson, a re- tions have been no higher than nor- spokesman says. “We are moving cruiter who specializes in stockbro- mal, says Ron Ferrelli, Smith Bar- petitor whose stock price has soared ahead with efforts to further com- kers,says in the past six months,about ney’s Northeast divisional director. 75% since it was spun off from bine Smith Barney with the rest of lent of $90 a share altogether. Mr. 600 of the firm’s top producers have “Historically, we’ve had the low- Co. in fall 2005. the organization.” Smith estimates. Citigroup currently left for rivals such as Morgan Stanley est attrition rates of any major bro- If anything, Smith Barney could Citigroup executives clearly sells for about $52 a share. and UBS. Many are being tempted kerage firm, and I have no reason to fare even better: It’s much more need to do something drastic to lift with enormous pay packages,includ- believe it will be any different this profitable than Ameriprise, gener- the company’s stock price, which Smaller is better ing bonuses equal to 200% of their year,” Mr. Ferrelli says. ating nearly 60% more earnings last has gone nowhere for five years and a smaller citigroup would be past year’s production, double the in- Of course, low attrition rates are year on almost identical revenues. has consistently lagged its rivals’ easier for Mr. Prince to manage. It dustry’s traditional rate. good news for investors who envi- “There’s a lot of talent pent up shares since Mr. Prince took the also would be better-positioned to Morgan Stanley, which is re- sion Smith Barney thriving as an in- within Citi,” says Mr. Smith. “Put helm in fall 2003. achieve the revenue growth de- building its retail brokerage busi- dependent brokerage. those division managers in charge of The company’s components— manded by investors, because it ness, is an especially active raider. They reckon that if the firm were an entire company, and see what namely, its domestic and overseas would be building on a smaller base. Last month, Gary Parese, freed from Citigroup’s clutches, its they can do.” commercial banking operations, its Smith Barney would arguably be Thomas Nolan and Mark Phillips, experience would be much like that credit card division and its investment the most appealing jewel for in- who together manage $355 million of Ameriprise Financial Inc.,a com- COMMENTS? [email protected] bank—would all be considered top- vestors. Although the unit con- shelf businesses if granted their inde- tributes less than 10% of Citigroup’s pendence. Trading as stand-alone revenues, it ranks behind only Mer- stocks, they would fetch the equiva- rill Lynch as the nation’s premier Layoffs couldn’t come at a better time Official Payments.

Citigroup attracts top talent,and Shortage of quality its former workers will be in de- talent bodes well mand, recruiters say. “The good for let-go employees news is that [Citi] is cutting when A Big Opportunity there is a shortage of good people,” says John Gramer, regional manag- ing director at the Mergis Group. BY TOM FREDRICKSON The only people who may have problems are those who haven’t kept citigroup inc. employees laid off their skills current. “When you for Small Businesses. in the elimination of 1,600 New work someplace for 20 years, it’s York City positions announced last easy to be lulled into a sense of secu- week should have little trouble find- rity,” Mr. Fusaro says. ing new jobs, according to staffing experts. Extra benefits Citigroup: “If it had to under citi’s standard severance The jobs happen, there plan,eligible employees who are ter- couldn’t be a better minated receive two weeks of pay time for it to hap- for every year of service,up to a max-

pen,” says Frank imum of 52 weeks of compensation. SM Fusaro, president of executive re- In addition, the company an- www.officialpayments.com 1-800-2PAY-TAX cruiter The Forum Group, citing nounced that severance will include Use your American Express® Card, Discover® Network, MasterCard® or Visa® card to pay your federal the strength of the job market. supplemental benefits of eight ® Those laid off are likely to be weeks of base pay for people who (Form 940, Form 941 and Form 944) and state business taxes through Official Payments Corp . You'll get technology, back-office and cleri- have worked between 10 and 15 the convenience of a fast, easy, checkless payment, more control over your cash and you may even earn cal employees, headhunters note. years; 16 weeks for 15- to 20-year reward points, miles or money back. You can also deduct the convenience fee on federal business tax Some of the jobs will be cut through employees; and 26 weeks of pay for payments. attrition. people who have completed more Call 1-800-2PAY-TAXSM (1-800-272-9829) or visit www.OfficialPayments.com. You can also pay through than 20 years of service. ® Professional openings Official Payments when you use TurboTax to prepare your taxes. It's fast, secure and federal payments Citi also lowered the age at are authorized by the IRS. technology and finance have which employees with at least 10 been two of the strongest areas in years’ service with the company can the local employment market. Fi- receive retiree medical and dental nancial services and jobs benefits, to 50 from 55. Those with have risen 4% in the past 12 months, five to 10 years’ service can access to 344,700; computer systems de- the benefits at age 55. Official Payments is a wholly owned subsidiary of Tier Technologies, Inc. Official Payments charges a convenience fee sign and services jobs are up 9%, to The financial services giant does for this service. Federal business taxpayers can deduct the fee as a business expense. Federal tax deposit payments cannot be paid through this service. This service is also available for federal personal individual income taxes and 41,100. not pay the premiums for retirees, other state personal and business taxes and fees in AL, AR, AZ, CA, CT, GA, IA, IL, IN, KS, LA, MD, MN, MS, NE, NJ, The city’s total job count has in- but they get lower rates because of NY, OH, OK, OR, PA, RI, VA, WA, WI, WV and D.C. Check with your card issuer for participation, rewards and money creased 1.7% over the same period, Citi’s group coverage. back terms, conditions and eligibility. and unemployment now stands at just 4.8%. COMMENTS? [email protected]

April 16, 2007 | Crain’s New York Business | 7 CNYB 04-16-07 A 8 4/13/2007 7:52 PM Page 1

Tennis courts in short supply ISLAND GETAWAY INDOOR TENNIS COURTS may be a Continued from Page 1 says Freddy Botur, who opened $2,400 to $5,200. CityView also vanishing species, but Sportime at Krone, a Manhattan resident who Tennisport in Long Island City 33 plans to promote the rooftop for Randall’s Island will be offering a plays on city courts, is girding for years ago and expects to lose it soon. catered events and parties. reprieve from the trend. longer waits now that the Columbus At the same time, demand is in- The hybrid public-private club, which Racquet Club on the Upper West tensifying. The number of applica- More closings leases its courts from the city, manages Side has closed. I expect to see a lot tions for the $100 permits that let the group of backers have owned four bubble-covered and seven outdoor Sportime will expand next year. more competition this summer to residents play at city parks rose and operated facilities in New York courts. Some of them are available to play in Central Park,” he says. nearly 10% last year from 2005, to City for about 30 years.One of their New Yorkers with a Department of Parks & Recreation permit; others are 70,802. clubs,Stadium Tennis Center in the Real estate values reserved for members. The city is primarily investing in Bronx, was closed recently to make Next year, the club will move 200 yards and expand to 20 courts, all players can blame high real estate renovating some of its 550 courts, room for the new Yankees Stadium. indoors. Construction should be completed by the spring of 2008. values for the disappearance of which make up the vast majority of Other longtime operators have dozens of courts, which have been courts throughout the five bor- not been able to adapt as well to the replaced with more lucrative resi- oughs. Its efforts to bubble-cover changing real estate market. dential and commercial buildings. some courts have been stymied by Mr. Botur, whose operation is Botur has been paying $800,000 a He has explored the possibility of Over the past six years, at least 10 community groups, says New York just a few miles away from year to lease it back. He has already building a rooftop facility in Man- clubs operating 82 mostly indoor Parks & Recreation Commissioner CityView, has been forced to close a lost four courts to municipal needs, hattan, similar to CityView’s, but it courts have closed, including Wall Adrian Benepe. number of clubs throughout the city and the site could be closed com- seems that even roofs are hard to Street Racquet Club and West CityView’s owners, who have in- over the years because of develop- pletely in a year or two for a park and come by in the borough. Shore Tennis Club on Staten Island. vested $10 million in the project, are ment. But he is most sore about the more residential buildings. “I’d have to charge $200 an hour Even New York Health & Racquet betting that the popularity of tennis prospect of losing Tennisport, Mr. Botur complains that he has [for court time] to justify the cost,” Club, whose name suggests the and the dearth of places to play it which features eight outdoor and 16 not been compensated for the value he says. “You can’t get real estate for promise of tennis, no longer has year-round will make the club a suc- indoor courts facing the East River. of his business. “I will have to take a tennis facility.” courts. cess. Annual membership at the The city seized his land under the city to court to get a fair price,” “Tennis courts are disappearing,” 90,000-square-foot club will cost eminent domain in 2004, and Mr. he says. COMMENTS? [email protected]

stein says.“He is a man of unquestion- Rubin Schron, a real estate investor, $6.9 billion in deposits. The bank able integrity and moral character. paid $300 million in February 2006 provides personal and commercial Bronfman quits IDB Could he have made some mistakes? for 26% of the IDB stock—a con- banking services to U.S. and foreign Maybe, and we will look at that.” trolling interest—with an option to clients through its main office in Continued from Page 1 Discount Bank’s offices at 511 Fifth Mr. Bronfman, who is managing buy another 25%. midtown and another Manhattan tive Reuven Spiegel. Ave. for staffers who worked for his director of ACI Capital in Manhat- Prior to Mr.Bronfman’s involve- branch. It also has branches in Bev- The decision came as Crain’s other businesses and on his civic activ- tan, also apparently had differences ment, IDBNY was used by foreign erly Hills and downtown Los Ange- New York Business was making in- ities, without reimbursing the bank. with Mr. Grunstein, the former citizens to launder money, regula- les and three in South Florida. quiries about Mr. Bronfman’s activ- Allegations were also raised that IDBNY board chairman who resis- tors say. Last October, IDBNY was ities at the bank, which has a histo- Mr.Bronfman meddled in bank op- ted stepping down. Mr. Grunstein fined $12 million by federal and ‘For the benefit of the bank’ ry of run-ins with regulators. erations, including trying to revise was the one who asked Sullivan & state regulators under anti-money- matthew bronfman’s lawyer, Earlier this year, the bank’s board compensation for the bank’s in- Cromwell to conduct the investiga- laundering laws. The case revolved George Canellos, sought to make hired law firm Sullivan & Cromwell house broker-dealer, IDB Capital tion, say sources close to the bank. around Brazilians moving hundreds clear that Mr. Bronfman remains to conduct an investigation of Mr. Corp. The subsidiary was created Mr. Grunstein did not return tele- of millions of dollars through IDB- committed to the bank. Bronfman’s activities. A report was with much fanfare in October by phone calls for comment. NY accounts owned by Brazilian “Mr. Bronfman, with his good presented to the board in March. Wall Street father-daughter team money exchangers and gaining ac- friend and partner Rubin Schron, While the report has not been re- James and Alexandra Lebenthal. More trouble for Bronfman cess to the U.S. financial system. will continue to work closely togeth- leased, two sources who have seen it The report did not draw any con- the board’s troubles come at a The state Banking Department cit- er for the benefit of the bank and its say it looked into allegations that Mr. clusions about Mr. Bronfman’s ac- bad time for Mr.Bronfman,47,who ed IDBNY for having inadequate shareholders,” Mr. Canellos says. Bronfman persuaded an IDBNY tions, and a spokesman for Mr. is engaged in a struggle with cos- internal controls and bookkeeping. Mr. Goldstein, who joined the loan officer to lend nearly $1 million Bronfman says he believes the report metics heir Ronald Lauder over IDBNY President Arie Sheer board in January, says the bank is to one of Mr. Bronfman’s partner- exonerates him. Michael Goldstein, leadership of the World Jewish left last year and was replaced by Mr. overcoming its problems. ships, without telling the board. a remaining IDBNY board member, Congress, which was founded by Spiegel, who had been vice presi- “We’re doing everything that’s Sources close to Mr. Bronfman say says anyone who doubts Mr. Bronf- Mr. Bronfman’s father. dent of the banking division. Mr. right,” he says. “If there are prob- the loan was made in 2005,before he man’s motivations is wrong. boasts Spiegel engineered a restructuring lems, we’re correcting them. We’re became a director or bought a con- “From my vantage , he ap- consolidated assets of about $38 bil- and cost-cutting plan at the bank. moving in the right direction.” trolling interest in the bank. pears to be doing things in the best in- lion.Founded in 1935,it’s one of the IDBNY, ranked by Crain’s as the The report also probed whether terest of the bank, and it appears to three largest commercial banks in region’s 10th-largest commercial COMMENTS? [email protected] Mr. Bronfman used a floor of Israel be a high priority for him,”Mr.Gold- Israel. The Bronfman family and bank, has $8.8 billion in assets and or [email protected]

popular that it needs more space. Defense Council, Environmental The sisters are moving MooShoes to Defense, and Transportation Alter- Eco-friendly retailers a bigger location on Orchard Street natives, a New York nonprofit. in the fall, where their business will Some department stores are also Continued from Page 2 going to stick,” says Marshal Co- be a neighbor to another eco-friend- into the swing of selling green. the green drive, according to The hen, chief analyst at The NPD ly fashion store, Kaight. That shop, Bloomingdale’s recently placed a NPD Group Inc.,a retail trend track- Group. “It’ll stick for a year or two launched last year, also carries luxu- four-page ad in youthful Nylon ing firm. But the movement, once and then go away.” ry green apparel. Owner Kate Mc- magazine to tout its organic denim known primarily for its crunchy GOT GREEN? Gregor says she’s on track to meet selection, including jeans from Birkenstocks, is taking root with a Green genes Percent of shoppers seeking her first-year sales goal of $350,000. Loomstate, Diesel and Levi’s. larger range of customers by going up- the current eco-friendly fashion eco-friendly products: The green retail kick has attract- scale and trendy.A slew of new labels, movement has ramped up in New Moral choices ed the attention of entrepreneur Les including Loomstate, offer high- York as several phenomena coincid- even shops that don’t specialize in Judd,a tour guide.On Earth Day,he fashion apparel with green roots. ed.With Al Gore turning the media <5% 18% green products try to be environmen- will launch Green Business NYC Even classic brands such as Levi’s crank, global warming has been 2000 2006 tally conscious.Bottlerocket Wine & with the first of a dozen planned now dabble in eco-friendly products. making headlines constantly, just as Source: The NPD Group Inc. Spirit, which opened on West 19th walking tours that will stop at eco- However, like wearing Chanel’s more fashion designers have started Street last May,displays its 365 wines friendly retailers on the Lower East Black Satin nail polish and skull-em- turning out cute frocks made with on shelves made of wood from sus- Side and in NoLIta.He expects about blazoned T-shirts, going green may bamboo fabric and organic cotton. cessories made with synthetic fibers tainable forests.The shop sells a small 15 people to pay $25 each for the be a fashion destined to peak and At the same time, Whole Foods, instead of leather or fur. The grow- selection of organic and local wines. two-and-a-half-hour walk on April fade. Earth Day, which turns 27 this which presents organic foods as ing green trend has boosted business. “If you start a business, you make 22. If all goes well, he will launch year, has gone through cycles of pop- more yuppie than hippie, has be- “We used to cater to vegans, but choices along the way, and it be- tours in other neighborhoods. ularity.Some years,everyone’s talking come hot with city shoppers. with this whole eco-slant, people comes a moral issue,” says owner “This whole category is explod- about saving the environment and in- Operating in the green comes who aren’t even vegetarian are get- Tom Geniesse. ing,” Mr. Judd observes. “It’s good stalling rooftop solar panels, but naturally to some store owners. Sis- ting into it,” says Erica Kubersky. On Earth Day, the store will of- for the planet, and it’s good for the many Earth Days slip by unnoticed. ters Erica and Sara Kubersky opened MooShoes’ revenues increased fer a wine tasting and a panel discus- bottom line.” “It really should be a lifestyle,but MooShoes on the about 30% last year, to just over $1 sion on global warming, featuring nothing is showing me that this is in 2001 to sell vegan shoes and ac- million,and the store has become so officials from the Natural Resources COMMENTS? [email protected]

8 | Crain’s New York Business | April 16, 2007 Project4 12/15/06 11:35 AM Page 1

Business Priorities.

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TO SELL OR NOT TO SELL WHY TIME WARNER SHOULD PART WITH TIME INC. The hottest media property I IT COULD FETCH BIDS of more than $16 billion. That’s billion. I TIME WARNER might grow faster—or at least be perceived as a faster- growth business—without Time Inc. that’s not for sale? Time Inc. I ONE LESS BUSINESS UNIT might lower the “conglomerate discount” that analysts say cheapens Time Warner stock. I WALL STREET LOVES a bit of mergers-and-acquisitions activity, and Time Warner unit is It has also been noted that Mr. networks, cable systems and filmed off-loading Time Inc. would certainly provide some work for the corporate Parsons, whose contract is up in entertainment,” says Bear Stearns banking and legal types. object of speculation; May 2008, is not Jeffrey L. Bewkes, analyst Spencer Wang. Time Warner’s president and chief A year ago, Reed Phillips, man- WHY TIME WARNER SHOULDN’T LET TIME INC. GO CEO-in-waiting operating officer and the company’s aging partner at media investment I IT’S A GOOD BUSINESS, full of powerful media brands—and brands are not averse to selling heir apparent. bank DeSilva & Phillips, would vital in today’s cluttered media world. have given a Time Inc. sale or spin- I TIME INC. delivers huge profits, which can fund faster-growing units. Constantly looked at off no chance. “Today I would no I THE MAGAZINES’ digitized archives should prove lucrative over time, BY NAT IVES mr.bewkes has said repeatedly that longer say ‘never,’ because Time nothing is off the table. “It is con- Warner has continued to change and especially in a Long Tail world. time warner Chief Executive stantly looked at,” he insisted at a evolve,” Mr. Phillips says. “I get the I THERE IS SYNERGY left to unlock. Richard Parsons recently told a Goldman Sachs media conference clear impression that the company is “town hall” meeting of 400 workers last September. Many people be- focused on operating performance about a conversation he had with lieve that Mr. Bewkes would sell and measures how each division is more you need in raw terms to show times earnings before interest, taxes, Omaha investment wizard Warren Time Inc. for the right price, and doing and how each division con- it. But if you back Time Inc. out of depreciation and amortization. Buffett concerning selling Time Inc. some believe it could probably fetch tributes to the overall company.And Time Warner and there’s more Last week’s client note from Bear “As your friend, don’t do that— more than $16 billion. if there’s a sense that part of the com- growth in other divisions, then the Stearns estimated that Time War- it’s a good business,”Mr.Buffett had As it happens, the Monday after pany is no longer contributing in the overall growth might look bigger.” ner’s publishing division will have said, according to people who heard Mr. Parsons’ “town hall,” a Bear way that top management expects, I 2007 EBITDA of nearly $1.1 bil- Mr. Parsons recount the story. “But Stearns analyst raised his rating on don’t think anything’s sacred.” Issue of price lion, which could put a bid close to if you do sell it, sell it to me.” Time Warner to “outperform,” Time Warner’s top manage- plenty of people still consider the $16.5 billion. And there’s the rub. Time Inc. partly because he believes the com- ment, like that at any public compa- idea—first pushed to the fore during There certainly could be advan- consistently makes impressive dou- pany—particularly once Mr. ny,is under pressure to improve rev- Carl Icahn’s drive last year to break tages for an independent Time Inc., ble-digit profit margins and is con- Bewkes takes over—will get more enues and earnings year after year, up Time Warner—unlikely, impos- like the ability to better focus on sidered by many a good media busi- aggressive about restructuring its no matter the market conditions. sible or ridiculous.The tax hit on any long-term strategy. Andrew Swin- ness with unlocked potential portfolio. It could merge AOL with “Wall Street wants to see outright sale would be painful, too. and, president of media agency synergy with the rest ofTime Warn- another leading Web property or growth,” says Robert Safian, Fast Most important is the issue of Starcom USA,says Time Inc.would er. Yet, despite Mr. Parsons’ persist- perhaps spin off Time Inc. Company editor and Mansueto price, but that could cut either way. have fewer resources on its own but ent denials that there are any plans “We think that the publishing Ventures managing director, who Two media bankers say a premium would be speedier and more flexible. to sell, everyone from the Time & division is the least attractive strate- worked for Time Inc. titles Money, property like Time Inc., which really Life Building to Wall Street and gic fit with Time Warner’s other Fortune and Time over the last has no equal in its business, could Nat Ives is a reporter at Advertising Age,a Nebraska keeps asking the question. video-centric businesses like cable decade. “The bigger your base, the command a sky-high multiple of 15 Crain publication.

AmericanAirlines, AA.com and We know why you fly are marks of American Airlines, Inc.

We know life can take you virtually anywhere.

Kilchurn Castle on the aptly named Loch Awe.

10 | Crain’s New York Business | April 16, 2007 CNYB 04-16-07 A 10,11 4/12/2007 12:54 PM Page 2

SMALL BUSINESS

AT A GLANCE 2 B’klyn hot spots on different paths TEA LOUNGE

FOUNDED 2000 tant, the classically trained pastry added a SoHo outpost six years lat- Sweet Melissa draws AT A GLANCE chef sees her outfit as a launching pad er.To supply those outlets, the cou- BEST-SELLING FOOD Eggspresso with pastries, while for a brand that may become the 21st ple established a baking head- (fresh steamed scrambled SWEET MELISSA century’s answer to Sara Lee. quarters in Carroll Gardens. In eggs with cheese or Tea Lounge appeals PATISSERIE In October, she inked a deal with September, they relocated the tomato on a as hipster hangout Viking for a book of recipes featuring SoHo store to Park Slope, where bagel), $4 FOUNDED 1998 her favorite pastries and desserts. the cheaper rents allowed them to BEST-SELLING Meanwhile, she is preparing to pitch snag a 2,100-square-foot space. BEST-SELLING FOOD DRINK Shot BY STEVE GARMHAUSEN production companies a TV show Chocolate chocolate about baking, and she has taped an Worlds apart Chocolate cherry cookies, $2.75 n the surface, two appearance on a show about Christ- there, customers run the gamut (hot chocolate caffeine-fired Brook- BEST-SELLING mas cookies and cakes, due to air on from nannies to schoolteachers. with double shot of lyn hot spots—Sweet DRINK Dallis coffee, the Food Network in November. They come for the smoked salmon espresso), $3.25

Melissa Patisserie $1.50 Ms. Murphy hopes to leverage platters, filet mignon sandwiches istockphotos and Tea Lounge— the resulting exposure to get her and, of course, desserts such as Ohave plenty in common. desserts into the frozen-food aisles hazelnut praline eclairs. Mr. Spiel and Tea Lounge Both are cozy destinations for newer version of Starbucks. The of upscale supermarkets. All that is a world away from Tea founder Greg Wolf are in the early hipsters who seek out high-end cof- lounge’s three locations are sprawl- “People are flocking to Trader Lounge. At its Union Street site in stages of hashing out plans with in- fee in a sociable setting. Each boasts ing hangouts strewn with shabby- Joe’s and Whole Foods,” she says, Park Slope on a recent afternoon, vestors to bring their community about 45 employees and expects to chic couches and Moroccan lamps. “but nothing has changed in that two toddlers played as their moms lounge concept to other neighbor- take in about $2 million in revenues They are places where patrons come frozen-food case in I don’t know nursed coffees. Scattered about the hoods or even cities. this year—and to grow aggressively to drink exotic coffees and teas by how many years.” 3,000-square-foot establishment, a “We’re trying to figure out where thereafter. day—and alcohol by night—and to Malcolm Knapp, founder of an dozen twentysomethings sat mes- we want to take it,” Mr. Spiel says. As it turns out, they also share a relax for hours on end. eponymous restaurant-consulting merized by their laptops. “The possibilities are endless.” taste in markets.Within days of each firm in Manhattan, thinks that Ms. “We’re more of a community Maybe so, but so are the poten- other last fall, both Carroll Gardens’ Answer to Sara Lee Murphy is on the right track. “The lounge and a hub for the neighbor- tial pitfalls. Sweet Melissa and Park Slope’s Tea in contrast, Sweet Melissa co- key is to generate publicity that can hood,” says Jonathan Spiel, one of “They have to find locations that Lounge opened locations in the founder Melissa Murphy sees her become a draw for stores to stock the two Tea Lounge owners. really represent the need for that kind heart of one another’s turf. two restaurants,with their bright and product,” he says. To bolster that status, the loca- of community drop-in and that level But beneath the surface two vast- airy feel and French country decor,as So far, so good for Sweet Melis- tions regularly host everything from of affluence,”says Mr.Knapp.“Loca- ly different business models can be places where people come to caf- sa, whose first location—in Carroll sing-alongs to movies to live music. tion will be really, really crucial.” found. The owners of Tea Lounge feinate,yes—but primarily to sample Gardens—proved so popular that As the day wears on, alcohol gener- see their budding chain as a hipper, her pastries and cakes. More impor- Ms.Murphy and her then-husband ates more of the revenues. COMMENTS? [email protected]

And that’s exactly where we fly.

More than 200 flights a week to Europe.

April 16, 2007 | Crain’s New York Business | 11 CNYB 04-16-07 A 12 4/12/2007 6:55 PM Page 1

VIEWPOINT The next steps at Citigroup

editor in chief Rance Crain he long-awaited cost-cutting plan and clerical personnel with experience in technology and publisher Jill R. Kaplan announced by Citigroup last week could finance, two of the strongest areas in the local job market. In EDITORIAL editor Greg David have been a significant blow to New York. the past 12 months, the number of finance and insurance jobs managing editor Richard Barbieri It isn’t, and that’s the rub. Chief Executive increased 4%, to 344,700.The number of positions in projects editor Cynthia Rigg deputy managing editors Valerie Block, Charles Prince’s staffing reductions were so computer systems design and services rose 9%, to 41,100, Erik Ipsen modest that they will almost certainly not over the same period. On the whole, the city will create at columnist Alair Townsend senior reporters Aaron Elstein, be the final word. least 50,000 jobs this year. Lisa Fickenscher, Matthew Flamm, Last week’s announcement was an attempt to placate While Citi’s endangered employees should be sanguine, Tom Fredrickson, Samantha Marshall, Anne Michaud, Julie Satow, Tinvestors, who believe that Mr. Prince, a lawyer by training, the mood among investors is anything but. Citi’s stock price Miriam Kreinin Souccar doesn’t have what it takes to make the sprawling financial rose only a few dollars in anticipation of the cost-cutting plan, reporters Barbara Benson, Elisabeth Butler, Erik Engquist, Amanda Fung, Hilary Potkewitz, conglomerate as profitable as its competitors, including local and actually fell after the effort was announced. One analyst Gale Scott rival J.P.Morgan Chase. While Citi’s revenues have grown disparaged it with a play restaurant critic Bob Lape art director Steven Krupinski by 77% since 2003, its operating expenses during the same Great sound and on a famous literary deputy art directors Carolyn McClain, period have risen by a whopping 152%.The $4.6 billion cost- phrase, saying, “This is a Daniel Mednick staff photographer Buck Ennis cutting measure eliminates 17,000 jobs worldwide and moves fury signifying great sound and fury copy desk chief Wendy Zuckerman thousands more to lower-cost locations. signifying little.” copy editors Michele Arboit, little, says one Thaddeus Rutkowski The bank says 1,600 of the positions to be eliminated are Citi’s stock is a long- research editor Denise Southwood associate research editor in New York City, where Citi is the largest private-sector analyst time underperformer— Adrianne Pasquarelli employer, with 27,000 workers.The bank hasn’t indicated up only 8% since www.NewYorkBusiness.com whether other positions will be relocated from what is clearly online editor Catherine Tymkiw January 2005, compared online reporter David Jones one of the highest-cost places to do business, but Citi does with a 26% rise for EDITORIAL AND ADVERTISING OFFICES say that it intends to continue to grow here. Chase—and the board 711 Third Ave., New York, NY 10017-5806 The blow to those let go will be cushioned by one of the best will soon feel increasing pressure to take further action.The editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0259 severance packages around. Employees will receive two weeks ouster of Mr. Prince and a breakup of the company is the Cable craincom nyk of pay for every year worked at Citi—up to 52 weeks of pay— most likely outcome. New leadership at Citi’s various newly Fax 212.210.0499 Entire contents ©copyright 2007 Crain and a supplemental benefit that could add another 26 weeks. independent units will almost certainly have to move much Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP Better yet, those workers’ prospects of finding other jobs more aggressively to pare costs, and shed more workers. Inc., used under license agreement. are very good. Most of the cuts will likely affect back-office That’s when the news for New York will turn much worse. TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. www.NewYorkBusiness.com LETTERS TO THE EDITOR ADVERTISING AND MARKETING advertising director Vanessa Cognard business development manager Robert N. Grossman senior account managers Holly A. McKeown, William E. Squitieri Imus: Crain’s readers take sides account executives Andrew Carlin, Lisa Pearly, Derek Reese, Jennifer Siniscalchi, Brigitte Stieglitz ANYONE WHO REGULARLY views banned from the airways for his his life. Sadly, this has become just western account manager Imus in the Morning knows Don latest diatribe as well as all the another soapbox issue for the Ellen Mazen (Los Angeles) 323.370.2477 sales manager, classified Imus is a decent, caring person. other vocal offenses he has biggest hypocrite of them all—Al print & online John Gallagher His flaw is permitting some committed over the years. Sharpton. newsletter product manager humor to go beyond the pale with r. schron catherine nocita Catherine Evans Gittens foul language and name-calling. sales coordinator, print & online (See Crain’s online poll, Page 13.) HIS COMMENTS WERE OFFENSIVE, WHILE HE SHOULDN’T BE FIRED for Lulé Haznedari sales coordinator Anita Perrino Well, he just got a reality check but so are the “lyrics” of much rap his comments—freedom of credit Pat Grondziak 313.446.6082 and now has the golden oppor- music, containing terms such as speech—they as a marketing coordinator Jill H. Bottomley tunity to be an agent for change the ones used. Such language referendum on our country if circulation manager Andrea Richardson that this culture sorely needs. He should be banned, period. people continue to listen to him general manager, interactive should not be fired but should nora cofresi and stations put him on the air. Marc Minardo revamp his show. He can hire a joshua adler IMUS’ REMARKS WERE JUST PLAIN NEW YORK PRODUCTION

sidekick or bring in any talent to gettyimages DRIVEL, IMUS IS AN EMPTY-BARREL production and pre-press director counter his schtick while pro- A CRAIN’S POLL found that most readers indicative of laziness and Michael Corsi tecting his brand—keeping it real would leave Don Imus in his post. disintegration. Racist? No. What MOTORMOUTH who makes a lot of advertising production manager and a little bit crazy without he said was too mindless to have noise but hasn’t any substance. I Marilyn DeMilta crossing the line into been driven by intent. question if anyone takes him PUBLISHED BY CRAIN COMMUNICATIONS INC. obnoxiousness. Jesse Jackson’s Hymietown label david abramson seriously.The women of Rutgers chairman Keith E. Crain joanne sephine and Al Sharpton’s Tawana Brawley should have looked at the source president Rance Crain mess, in which he lodged false THERE ISN’T A RACIST BONE in Don and then laughed it off. Imus, secretary Merrilee Crain IMUS IS CRUDE, rude and a barely accusations against a public Imus’ body. He shot off his mouth Stern et al. are clowns and should treasurer Mary Kay Crain intelligible boor.The notion that a servant. No one has ever heard without thinking, and I believe he be regarded as such. executive vp, operations William Morrow two-week suspension will change these media-motivated individuals will regret this one for the rest of geo carl kaplan senior vp, group publisher Gloria Scoby group vp, technology, circulation, him or adequately punish him is admit their failings and take manufacturing Robert C. Adams ludicrous. I’m amazed that the responsibility for their actions. vice president/production & Rutgers players are meeting with jim kerr manufacturing David Kamis him. Why? He should be shunned WHAT’S COMING UP IN CRAIN’S? chief information officer Paul Dalpiaz and ignored. THE RESULTS OF YOUR POLL show corporate circulation director Patrick Sheposh geoffrey d. batrouney just how insensitive most of your International New York Meeting readers apparently [are] and why business film industry planners founder G.D. Crain Jr. (1885-1973) THE TWO MOST VOCAL ADVOCATES we continue to have problems with report report guide chairman Mrs. G.D. Crain Jr. (1911-1996) for Imus’ firing are people who our standards for morality. Imus April 23 April 30 May 7 have a history of similar actions: should not only be fired but be

12 | Crain’s New York Business | April 16, 2007 CNYB 04-16-07 A 13 4/12/2007 6:37 PM Page 1

it is clear that many universities— including NYU and Columbia— have adopted the same ethics so of- ten associated with the securities industry. They have sold access to stu- dentsand parents to the highest bid- ders, engaged in false advertising to their customers, and even allowed some of the people who make deci- sions about financial aid to use their positions for their own monetary gain. Ah, just like Wall Street. Consider what we know so far about New York’s two most impor- tant universities, as well as their spin on the news. When it was first re- vealed that Mr. Cuomo was looking into practices at NYU, a spokesman claimed that the school selects pre- ferred lenders “based on the compet- itiveness of their rates for the great- est number of students and the quality of the loan service they offer.” Then we learned that Citibank

john h.john howard had paid NYU $1.4 million after it was listed as a preferred lender. It didn’t give the money out of the goodness of its corporate heart. It paid NYU because it believed that it Higher education needed to for competitive reasons. Rates and service weren’t the only factors—and probably not even the hits Street level most important ones—in winning a spot on the list. Uptown, the transgressions were he nation’s most prestigious universities think more egregious. they are engaged in a higher calling: educating The top financial-aid executive at Columbia was offered stock in a America’s next generation of leaders. But for de- company seeking preferred-lender cades, their executives have acted like the savviest status, at what appears to be a Wall Street traders, improving their financial well- sweetheart price of $1 a share. He being by playing on Americans’ desires to give their children a eventually cashed in the stock for a T personal windfall of $100,000. It head start in life. isn’t even evident that Columbia has clear rules against such conflicts of I know all this first- at twice the rate of in- interest. (Business publications cer- hand, because I am one flation because that’s tainly do; I invest in equities only of those parents who what the market will through an S&P 500 index fund,for will spend $50,000 next bear. As someone who example.) year for my child’s soph- studies economic is- Isn’t it possible that the way uni- omore year in college. sues, I know that a de- versities have exploited their eco- As a father, I believe gree from New York nomic power emboldened some of it is an advantage for University or Colum- their executives to do the same for my child to attend one bia—which costs twice themselves, just as traders do on of the nation’s leading as much as a B.A. from Wall Street? Although the student private schools. As a the best public universi- loan scandal will probably spur journalist in the print GREG ties in the state—isn’t tougher government regulations to media business, where DAVID really worth the premi- eliminate the worst abuses, as long we spend a lot of time um I am paying. as parents like me allow emotions to cutting costs, I am cha- Now,courtesy of At- overcome financial analysis, there grined that these schools feel they torney General Andrew Cuomo’s will be no fundamental changes in can raise their fees for next year investigation of student loan plans, this economic equation.

CRAIN’S ONLINE POLL DO YOU AGREE THAT DON IMUS’ COMMENTS ABOUT RUTGERS’ WOMEN’S BASKETBALL TEAM ARE GROUNDS FOR FIRING? Yes, he has THE DAY BEFORE CBS canceled Don Imus’ made such radio program last week, the majority of No, it’s a comments matter of free .26% 22%. many times; the 846 respondents to a Crain’s poll said speech enough is they supported the talk show host. More enough than a third said that his two-week 15%. Yes, the Rutgers suspension was enough punishment; a No, his comments two-week 37% were way over suspension is . the line quarter believed that his comments were sufficient protected by the First Amendment.

For readers’ comments, see Letters to the Editor on Page 12.

April 16, 2007 | Crain’s New York Business | 13 CNYB 04-16-07 A 14 4/12/2007 6:44 PM Page 1

Tech IPOs look ready to make a comeback

JobsintheMoney.com, plans to raise backed New York area companies IntraLinks Inc., had registered in software provider Medidata Solu- Dice first to file $100 million through an initial pub- about going public,” says David Sil- June 2005 to raise $64 million but tions recently hired an investment in almost 2 years; lic offering. verman, managing partner of Price- withdrew the filing a few months lat- bank to explore a potential IPO. The six-year-old Manhattan waterhouseCoopers’New York ven- er, citing “unfavorable market condi- Observers say that DoubleClick market conditions company,which filed with the Secu- ture capital practice. tions.” IntraLinks had registered for Inc. could also make an attempt. more conducive rities and Exchange Commission an IPO in 2000, and some observers The company is reportedly being on April 4, has been owned by pri- Third time the charm believe that it’s a good candidate to courted by would-be acquirers Mi- vate equity firms General Atlantic the last local tech company to file again later this year. crosoft Corp. and Google Inc., but BY AMANDA FUNG and Quadrangle Group since 2005. go public was DealerTrack Hold- “If you look at the Nasdaq, it has some experts say an IPO is a viable Though few area technology ings, in Lake Success, L.I.The soft- been the best quarter ever for IPOs,” option for the online advertising ice holdings inc., firms have had IPOs over the past ware provider for the automotive re- says Michael Maxworthy, a partner pioneer. which operates ca- two years, analysts say more may be tail industry raised $170 million in at investment bank Marlin & Asso- Dice is hoping to cash in on the reer- and job-orient- in the works. December 2005. ciates. “Market conditions have popularity of career-oriented con- ed Web sites, includ- “There have been increased dis- Another Manhattan firm, soft- changed.” tent. Nationwide, spending on em- Ding Dice.com and cussions among private, venture- ware document exchange provider Manhattan-based health care ployment advertising of all kinds—

DICE AT A GLANCE In millions of dollars. Net income Year Revenue (loss) 2004 $35.8 $1.8 2005 $35.6 ($3.4) now, Free Business Checking can 2006 $87.1 $6.8 Sources: Company; Capital IQ help more than the bottom line. including on Web sites like those Dice runs—totaled $8.6 billion in 2006,according to research firm In- ternational Data Corp. “Dice sees an opportunity to be- Open a Free Business Checking account and get a come a dominant player in niche re- “Green Business Kit” when you pay three bills online.* cruiting,” says Colby Atwood, pres- ident of research and consulting firm Borrell Associates Inc. “It As the world’s local bank, we know that working towards sustainability isn’t only a good wants to expand, and going public thing to do, it can also be profitable. Small changes can add up quickly, and with the will enable it to do that quickly.” right tools we can have a real impact on the environment. Of course, a Green Business Job sites hot Kit isn’t the only reason to bank with us. Free Business Checking from BusinessSmartSM the company operates five sites: has exclusive benefits, like no minimum balance requirements, 300 free monthly ClearanceJobs, for professionals transactions and free online banking. To open a business checking account, go to your with active government security local branch, call 866-427-2104 or visit us.hsbc.com/theresnosmallchange. clearances; CybermediaDice, for technology professionals in India; Ask us about our personal banking services. Dice, for tech workers and engi- neers; eFinancialCareers, for peo- ple in financial services; and there’s no small change JobsintheMoney for accountants, retail bankers and wealth managers. It competes against newspapers’ classified ads, as well as well-known sites like Monster, CareerBuilder and Yahoo HotJobs and hundreds of niche sites. In 2006, Dice more than dou- bled year-over-year revenue—gen- erated from ads and fees paid by employers who post openings—to $87.1 million. “As more and more companies move to the Web, people look at job boards as an efficient place to spend recruiting money,”Mr.Atwood says. Credit Suisse, Morgan Stanley, J.P.Morgan Chase,Lehman Broth- ers and Jefferies & Co. will under- write the IPO, according to the fil- *To be eligible to receive the Green Business Kit, customers who open a new HSBC business checking account between April 9 and June 8, 2007 must pay three bills by July 25, 2007 using HSBC Online Bill Pay. Qualifi ed customers will be notifi ed via BankMail within eight weeks of the third online bill payment. (BankMail is the secure e-mail service accessed within Business Internet Banking.) Notifi cation ing.Dice did not specify the number will include instructions for redeeming the Green Business Kit, which will require customers to register an e-mail address and their preferred shipping address. The kit will be delivered within 4-8 weeks after of shares or a price range. It plans to registration. Limit one kit per business customer. This offer cannot be combined with any other offers or promotions, is nontransferable, good while supplies last, and expires on November 30, 2007. Any kits seek to list on the New York Stock not redeemed by November 30, 2007 will be forfeited. The cost of the Green Business Kit will be reported on IRS Form 1099. Exchange. Deposit products in the United States offered by HSBC Bank USA, N.A. or HSBC National Bank USA. Both banks are Member FDIC. ©2007 HSBC Bank USA. Equal Credit Opportunity Lender. COMMENTS? [email protected]

14 | Crain’s New York Business | April 16, 2007 Project7 4/10/07 4:27 PM Page 1

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NEIGHBORHOOD JOURNAL

more lanes. Jamaica project wins key early OK Roughly 10 merchants based around the station will be displaced. They have formed a tenant’s associ- Community Board 12 approved two tail projects anchored by an expan- sent the first two pieces. ation to fight the project. The city Avenue expansions projects early this month. One proj- sion of Jamaica Station—an impor- “These projects provide for the Economic Development Corp. and move airport village ect will expand and realign Atlantic tant transit hub with three subway infrastructure improvements that the Greater Jamaica Development Avenue, while the other will expand lines, seven bus lines, the Long Is- will make development possible un- Corp. have hired a real estate broker a step closer; Bronx Archer Avenue to make way for Ja- land Rail Road and AirTrain JFK. der the rezoning,” says Andrew to find relocation sites for the store maica Station renovations. The prospect of all that con- Manshel, senior vice president of owners, and the EDC has promised strip gets Walgreens While neither project ranks as struction has sparked a firestorm of real estate development for the low-cost loans and free relocation monumental,the two approvals rep- protest from local residents opposed Greater Jamaica Development counseling. he plan to transform resent critical victories for the over- to large-scale development in their Corp. “They’re important.” Queens Borough President He- downtown Jamaica into all plan for downtown Jamaica. City backyards. Because of the size and The Atlantic Avenue realign- len Marshall will probably approve an “airport village” officials want to rezone a 386-block complexity of the project, the city is ment involves making 94th and the two avenue projects next month. cleared its first major area. That rezoning would clear the trying to advance the plan piece by 95th avenues one-way. The Archer The City Council is expected to vote hurdle when Queens way for a wave of new hotel and re- piece.The avenue expansions repre- Avenue expansion entails adding on them this summer. T —hilary potkewitz Major renovation draws big tenant long-awaited plans for a major revamp of a six-story building in the heart of the East Fordham Road sec- tion of look to be a little less sweeping than originally envisioned. Three and a half years after buy- ing the 276,000-square-foot build- ing at the corner of East Fordham Road and Webster Avenue for $30 million,the new owners have signed on their first new tenant.Walgreens will take 10,000 square feet on the ground floor. Originally,there was talk of seek-

I TRUST: IN STORE: Walgreens is headed for East CompUSA to bring me Fordham Road in the Bronx.

the latest technology. ing a big-box retailer, possibly Kohl’s, Target or even Wal-Mart, for the site. Rely on CompUSA to deliver the technologies that drive your business including Windows Vista™ and The owners, P/A Associates and Acadia Realty, hope to deliver Microsoft® Offi ce 2007. The new security, mobility and productivity enhancements of Windows Vista™ ® the space to Walgreens by the end and Microsoft Offi ce 2007 help you get things done so you can focus on what matters most – your of the year. business. And even better, CompUSA’s Microsoft Volume Licensing program can deliver a substantial For decades, Sears has occupied discount for as few as fi ve copies. much of the retail space in the build- Talk to a Business Services Representative about our free technology needs assessment that can deliver ing,which has 650,000 people living savings for your business. within a 2-mile radius. Acadia’s di- rector of leasing, Joe Povinelli, calls the mostly Hispanic neighborhood “a vibrant retail area with heavy foot Register for the Microsoft Across America traffic.” Truck Tour today: Sears, whose lease expired only recently, will consolidate its cur- 1-866-4-CompBZ rent 136,000-square-foot, four- www.compusabusiness.com/bustour story operation into the building’s Thursday, April 26, 2007 34,000-square-foot basement.That move will free up the ground floor 11:00 a.m. – 3:00 p.m. for Walgreens and other retail es- 1775 Broadway, (57th & Broadway), New York, NY 10019 tablishments, including an undis- closed electronics retailer, which is also expected to occupy space on the second floor. CompUSA brings the latest technology to your business. The owners are looking into a At the Microsoft Across America Truck Tour, you can health club tenant for the third floor experience the benefi ts of Windows Vista™ and Microsoft and will convert the fourth through Offi ce 2007 fi rst-hand with demos, expert Q&A, and special offers. You can also enter to win Microsoft software*. sixth floors into office space. The *No purchase necessary. Store visit required. See store for rules and details. conversion will be paired with the construction of a 14-story office tow- er on the south side of the building. —kira bindrim

16 | Crain’s New York Business | April 16, 2007 Project4 2/8/07 3:27 PM Page 1

Go to newyorkbusiness-risingstars.com for photos, profiles and for the first time ever candid video interviews of the honorees. Project7 4/9/07 3:54 PM Page 1 CNYB 04-16-07 A 19 4/11/2007 4:34 PM Page 1

REAL ESTATE INSIDE Top property-sales firms in Manhattan PAGE 25 Top architecture firms in NY PAGE 26 Latest deals: Nonprofit grabs Google space, and more PAGE 28 Staff gap pumps up expenses Key workers,subcontractorsMIA during boom; projects delayed

BY STAN LUXENBERG a field supervisor applied for a job at Aragon Construction in 2004, requesting a salary of $65,000. Alex Getelman, presi- dent of the Manhattan-based firm, was convinced that $50,000 was the appropriate salary. So he passed on the applicant, who would have handled the day-to-day oversight of a project. The supervisor recently reapplied for the same job at Aragon, this time seeking $110,000. “There is a shortage of experienced supervisors, and the best ones can demand big raises,” says Mr. Getelman. “We are seeing top people making more than $150,000.” With a boom in build- veloper. “Now, it costs at ing projects all over New least $400.” York, construction compa- Big New York com- nies face a shortage of Q&A mercial projects are usu- skilled employees and sub- ally overseen by major contractors—which, along PETER MARCHETTO companies such as Bovis with increases in prices for on trends, costs Lend Lease, Tishman and sustainability materials, is driving up Page 21 Construction and Turner costs. Real estate company Construction.For a single Jones Lang LaSalle estimates that job, such companies may hire more PAYING THE PIPER: construction costs climbed 1% a than 30 subcontractors, including Aragon’s Alex Getelman sees top supervisors month in 2006. electricians, plumbers and other getting more than three “Four years ago, you could specialists. times what he would build quality residential projects for When construction activity have paid for a similar $300 a square foot,” says Mitchel slowed after the Sept. 11 terrorist position three years ago. Maidman, president of Townhouse attacks,subcontractors eager to find

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April 16, 2007 | Crain’s New York Business | 19 CNYB 04-16-07 A 20 4/11/2007 4:40 PM Page 1

REPORT REAL ESTATE

STUDENTS EXPLORING CAREERS Staff gap ups costs HOST BUSINESSES SOUGHT FOR HIGH SCHOOL GROUPS THE GREATER NEW YORK COUNCILS’ Exploring program what people in their selected fields actually do. Continued from Page 19 is seeking businesses to host educational sessions Businesses often arrange special projects for the and stadiums for the Yankees, the offering high school students the opportunity to explore students, such as preparing marketing materials for a work lowered their bids. As busi- Mets and the Nets. various industries and make better decisions about product, designing the concept for a new restaurant, ness picked up—especially work One trouble spot is the lack of on residential towers throughout availability of subcontractors that possible career choices. engaging in moot courts and the like. the city—subcontractors began rais- handle concrete for foundations. The Exploring program puts together groups of 15 to Programs start throughout the year, and the timing is ing prices. 25 students interested in specific fields, such as journal- tailored to fit business schedules. Participating Now they often are unavailable. Weighted down by concrete ism, computing services, law or restaurant operations. organizations include Bloomberg, NYU Medical Center The situation is expected to get mr. maidman says a project may The student groups meet at the host businesses after and Crain’s New York Business. worse as momentum builds on a have to wait in line for four months school for four or more sessions, learning about career For more information, please call Exploring director Bob number of giant projects, including before a foundation contractor is ladders, educational requirements, salary scales and Hayes at (212) 651-2808, or visit www.nyexploring.org. work on Ground Zero, a new sub- available. That can slow the whole way station in lower Manhattan, job, as other subcontractors wait their turns to begin work. Such de- lays can be extremely expensive. “If you have a $100 million con- struction loan, every month of de- lay adds $1 million in financing costs alone,” says Barry LePatner, a Manhattan lawyer specializing in construction. Finding field supervisors is also especially difficult.Supervisors must make sure that various subcontrac- tors arrive on time and cooperate with other specialists on the site—a task that requires judgment and diplomacy. In general, construction compa- nies are loath to staff up for booms, A month’s delay adds $1M to the cost of a $100M construction loan

because new employees often don’t adhere to a business’s quality stan- dards, and they’re frequently less productive. “If you use less-skilled workers,it takes more people and time to get a job done,” says Mr. LePatner. “Sub- contractors who hire second-rate workers wind up raising their bids to cover the extra salaries.” Smoothing out the cycles to avoid the effects of boom-and- bust cycles on personnel,F.J.Sciame Construction Co. takes on only a limited number of projects. The Manhattan-based company, which has 125 employees, recently com- pleted enlarging The Morgan Li- brary & Museum, on Madison Av- enue between East 36th and East 37th streets. “We learned a long time ago that the best way to maintain prof- itability is by delivering high- quality work,” comments President Frank Sciame. “We don’t want to take on a job and build it with untested talent.” Kenneth Levien, president of Manhattan-based construction man- ager Levien & Co., notes that the city has just 120,000 unionized workers in the building trades. “All of them will be busy for some time,” he says, “and we are going to need to find new workers.”

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20 | Crain’s New York Business | April 16, 2007 CNYB 04-16-07 A 21 4/11/2007 4:11 PM Page 1

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Q: Why is that? A: Residential obviously is a huge component, but so are health care, education, commercial, public works and infrastructure. Usually, Q&A one market is extremely busy and the other ones are slow. But consider sports facilities. We have not built new ones in almost two Building decades; now, we have the Mets, the Yankees, the Jets and Giants in New Jersey, the Devils in New boss: Jersey and the Nets in Brooklyn. Q: Have you actually had to turn handling down projects? A: Yes, we have. We’re very cognizant about not overextending the boom ourselves so we can fulfill our contractual obligations. That’s probably the single most important Bovis CEO sees thing we look at right now when 3- to 5-year pipeline any new work comes in—whether or not we have the appropriate of major projects staff to handle it. It’s a struggle, because eter marchetto has sometimes we’re looking at clients been chief executive of that we have built for on multiple Bovis Lend Lease Amer- occasions and unfortunately have icas since 2004. He grad- to say no. uated from the Universi- Pty of Maryland with a degree in Q: How long will this boom last? architectural engineering in 1978 A: That’s a question that we ask and has spent his entire career with ourselves twice a year, when we do firms that were acquired by Bovis. our planning and forecasting. Our Crain’s editor Cynthia Rigg inter- guess is it looks like it’s going to viewed Mr. Marchetto about the remain strong for another three to building boom, rising costs and the five years. outlook for construction. If you look at the work that’s already in the pipeline and you Q: What is the state of the look at the work that’s coming out construction industry in New York of downtown just at Ground City? Zero—the Freedom Tower, Gold- A: This is by far the busiest I’ve man Sachs, the new office towers, ever seen the construction industry the memorial, the PATH station— in New York City. As a matter of that one area alone represents fact, for the most part, it’s probably several billion dollars’ extremely busy worldwide. In New worth of work that will run for the York, the activity isn’t just in one next three years, if not longer. particular market sector but across The Farley Square and the ATTENTION: all of them. See CEO Q&A on Page 22 BUILDERS, DEVELOPERS, BANKERS... The Commercial Real Estate Market is changing... And those changes can cost you a bundle. Find out how you can profit from the current issues. Get Your Free Copy... The Coming of the “Half-Builts”: by William “Billy” Procida In this concise report William Procida discusses the relevant issues as the commercial real estate boom cycle of the last decade comes to an end. Read the 9 precautions and risk mitigation approaches Procida stresses that management should undertake now and avoid financial problems later on. This is one report you should not miss! For a FREE copy please call 201-894-5000 or mail the order form below today!

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April 16, 2007 | Crain’s New York Business | 21 CNYB 04-16-07 A 22 4/11/2007 4:13 PM Page 1

REPORT REAL ESTATE

and there is a huge demand for supplies, and it’s at a premium these CEO Q&A: major projects, rising costs days.

Q: How long will prices keep Continued from Page 21 A: Supply and demand. For are on the horizon, the concrete the work safely and on time. As a rising? Farley Post Office project over on years, construction management companies can ask for more result, you have a demand for A: I think some of the the West Side—all indications are companies, along with developers, money. certain contractors. adjustments have already been that it seems to be getting a lot of have really done a good job of We do the best we can to try to Then there’s a demand for made. For example, I know there momentum, along with the creating a competitive atmosphere negotiate for our clients. We’re in a materials, whether it’s raw materials have been several major new convention center and Hudson for subcontractors. Now, the shoe’s situation where a lot of clients like cement and concrete, structural drywall plants built in the United Yards.That would be a springboard on the other foot. Consider want us to lock up some of the steel, curtain wall, drywall, ceramic States that have really helped ease for multiple projects in and around residential towers. There are three, better subcontractors. They know tile, or copper and pipe. It’s a demand. So I think drywall prices the 34th Street corridor. four, maybe five residential they’re going to pay a premium; the worldwide demand. As a result, the either leveled off or are starting to concrete companies that can do question is how much. It’s manufacturers are pressed and come down slightly. Q: Why are construction costs those projects. If you have 15 important they find the right raising their prices to all the continuing to climb? already going, and five or 10 more contractor that’s capable of doing vendors. You put that all together Q: Compromises have been made to cut costs. Are they going to come back to haunt people later on? A: I don’t think so. I can’t speak for every developer, but the developers that we work for we believe are very sophisticated, and when confronted with the decision of cost versus value engineering, saving money on jobs, they make an assessment of what is an appropriate trade-off. We’re looking at a project for Zeckendorf ’s Mayflower Hotel. They made a decision to build a world-class, high-end project— despite the high costs of the industry—and I believe that that project is going to be extremely successful.

Your plans are spectacular. Q: But many projects have seen significant design changes? A: Not so much in New York City, but certain places outside of New York, developers have gone with a less sophisticated exterior But could your legal strategy facade. Obviously, a project with brick that’s laid up individually will need to have a lot of bricklayers. If use a new blueprint? they’re not available, it’s a very big premium, so sometimes owners have to have a precast system where they have lower manpower requirements. They build it in a factory, bring it to the job site and assemble it with a crane.

Q: What about all the headlines about accidents at construction sites? A: One thing the industry has tried to do is push for job safety. There are more apprentices coming into the business. We’re really trying to raise the level of awareness of working safely on job Cohen & Perfetto: A personalized approach to real estate law. sites, with more training and better Itʼs a simple, but profound, premise: Each client represents an important relationship. means and methods. And every one of those relationships demands our complete attention and dedication. Q: At Cohen & Perfetto, this is the philosophy that drives us. We make the connections How would you assess the impact of the green building movement? that build these relationships, adding depth and value to every partnership we forge, A: There has been a real and every transaction that transpires. Whether your needs involve real estate, govern- movement toward sustainability in ment incentives, banking, zoning, or litigation, itʼs not just a deal to us: Itʼs your deal. New York City. You’re going to see Learn more at www.cohenperfetto.com. a lot more here with respect to sustainability over the next five to 10 years. Five years ago, people were experimenting with it. When we price a project, we understand what that additional cost would be to go to the different levels of certification in terms of 444 Madison Avenue, 5th Floor sustainability. More buildings have C New York, NY 10022 been done, and more engineers and P COHEN & PERFETTO LLP Tel: 212-488-1300 Fax 212-813-0767 architects understand what those Attorneys at Law www.cohenperfetto.com building systems are. As a result, there’s more history that we can use when we do design and construction of buildings.

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22 | Crain’s New York Business | April 16, 2007 Project4 4/3/07 2:15 PM Page 1

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REPORT REAL ESTATE TENANT-READY Construction of new Manhattan office space. If you build it, tenants will come # of new % increase developments in inventory 1970s 29 24.5% tenant under contract. But the re- erties Inc., Brookfield Properties office tower before lining up a tenant Demand for modern markable thing about the project is and The Related Companies are ex- would have been considered foolish 1980s 53 21.0% office space justifies that it’s not remarkable. pected to pursue large West Side of- at best. Indeed, The Durst Organi- 1990s 12 4.9% Larry Silverstein is close to filling fice projects without major tenants. zation raised more than a few eye- 2000s* 148.0% speculative approach 7 World Trade Center, also built on brows when it began development of spec,and is about to begin three more Sensible plan 4 Times Square in the mid-1990s. *Projected. Source: CB Richard Ellis BY STEVE GARMHAUSEN towers along Greenwich Street. “the market is so tight that we “Everyone thought Douglas Macklowe Properties is believed think it’s time to go,” Peter Eppie, [Durst] was crazy,” says Mary Ann sjp properties is developing a 1.1 to be planning a 350,000-square- executive vice president of SJP, re- Tighe, chief executive of the New The initial skepticism was un- million-square-foot speculative of- foot spec office building at the cently explained matter-of-factly. York tristate region for CB Richard derstandable: Developers remem- fice tower at West 41st Street and southwest corner of East 53rd Street “We’re going 100% spec.” Ellis, referring to the co-president bered all too well the spec building Eighth Avenue—without a single and Madison Avenue.Boston Prop- Just a few years ago, erecting an of the development company. boom in the late 1980s and early 1990s that resulted in empty build- ings. But Mr. Durst’s success in fill- ing 4 Times Square was followed by many similar stories. Consider 7 World Trade Center. Completed a year ago, Larry Silver- stein’s 52-story tower is now mostly spoken for:1.1 million of its 1.7 mil- lion square feet are under lease. His three additional towers at Ground Zero are scheduled for completion in the next five years; their com- bined office space will exceed 6 mil- lion square feet. “If you possess that rarity of a good footprint for office space, it’s not a big gamble,” says Ms. Tighe. “The market will meet you.” Spec development received more vindication two years ago. That’s when the Kipp/Stawski Group nabbed financial firm CIT Group Inc. as the first client for its 28-sto- ry building at East 42nd Street and Fifth Avenue—after construction of the building was well under way. Since then, burgeoning demand for modern space has continued to justify the spec building approach, says Ms. Tighe, who points to The New York Times Co.’s new head- quarters as an example. Strong demand the times co.’s 1.6 million-square- foot tower across Eighth Avenue from the Port Authority Bus Termi- nal is not a pure spec building; it was built to house the Times Co. But 700,000 square feet above the news- paper company is owned by devel- oper Forest City Ratner Cos., and it is virtually all leased. Central to the strong demand has been a dramatic slowdown in office space construction over the past 17 years, Ms. Tighe says. That, along with condo conversions and the de- struction caused by the Sept. 11 at- tacks, has left Manhattan inventory at early-1980s levels. Much of that stock is more than 50 years old. Meanwhile, the business and fi- nancial sector continues to grow and clamor for space that can accommo- date its technology and layout needs. “There is a certain segment of the tenant community that will al- ways want to be in state-of-the-art facilities,”says David Goldstein,ex- ecutive vice president with Studley. Yet, every bull market must end sooner or later, says Alan Miller, a senior director and principal at Eastern Consolidated, who adds: “We’re not sure how long it will sus- tain itself. We’re all riding the wave as long as we can.”

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24 | Crain’s New York Business | April 16, 2007 CNYB 04-16-07 A 25 4/18/2007 12:35 PM Page 1

REPORT CoStar’s Top Property-Sales Firms Ranked by commercial sales volume in Manhattan in 2006

Total dollar volume Total dollar volume Percent change Number of sales Avg. dollars per sale Brokerage in 2006 in 2005 in dollar volume in 2006 in 2006

1 CB Richard Ellis $11,725,658,750 $6,410,000,000 +82.9% 25 $469,026,350

2 Eastdil Secured $4,945,500,000 $2,227,204,000 +122.0% 10 $494,550,000

3 Eastern Consolidated $2,920,841,990 $1,568,497,638 +86.2% 112 $26,078,946

4 Massey Knakal Realty Services Inc. $2,096,665,074 $1,623,821,941 +29.1% 242 $8,663,905

5 RMB Properties $1,266,200,000 $47,525,000 n/m 8 $158,275,000

6 Cushman & Wakefield Inc. $1,192,818,150 $2,919,550,000 -59.1% 14 $85,201,296

7 Capin & Associates $717,088,500 n/a n/a 60 $11,951,475

8 Besen & Associates Inc. $449,881,036 $616,025,000 -27.0% 59 $7,625,102

9 GVA Williams $449,151,987 $199,893,340 +124.7% 20 $22,457,599

10 GFI Realty Services Inc. $336,270,000 $716,925,609 -53.1% 23 $14,620,435

11 Studley $329,450,000 n/a n/a 3 $109,816,667

12 Marcus & Millichap $214,159,912 $154,930,500 +38.2% 16 $13,384,995

13 Newmark Knight Frank $193,295,762 $629,056,200 -69.3% 7 $27,613,680

14 Itzhaki Properties $191,322,456 $111,632,500 +71.4% 18 $10,629,025

15 Lee Odell Real Estate Inc. $116,745,000 n/a n/a 14 $8,338,929

16 Murray Hill Properties $110,963,830 $184,460,000 -39.8% 3 $36,987,943

17 ABS Partners Real Estate $105,860,000 n/a n/a 8 $13,232,500

18 The Corcoran Group Inc. $100,171,000 $105,538,500 -5.1% 24 $4,173,792

19 Cornerstone Property Group Inc. $92,392,000 n/a n/a 9 $10,265,778

20 Jones Lang LaSalle $79,000,000 n/a n/a 1 $79,000,000

TOTAL FOR TOP 20 $27,633,435,447 $17,619,017,728 +56.8% 676 $40,877,863

TOTAL FOR ALL TRACKED SALES $34,944,339,016 $22,651,178,283 +54.3% 1,103 $31,681,178

TOTAL FOR TOP 20 IN 2005 726 $24,268,619

TOTAL FOR ALL TRACKED SALES IN 2005 1,220 $18,566,540

Includes transactions of $500,000 or more in Manhattan that were reported to and confirmed by CoStar. Firms are credited for representing the buyer, the seller or both. 2005 sales volumes also include transactions in the Bronx, Brooklyn and Queens. The total sales figure for the top 20 in 2005 includes con- firmed sales for companies for which full data were not available. n/a Not available. n/m Not meaningful. CoStar Group Inc. (NASDAQ: CSGP) provides information services to commercial real estate professionals in the United States, the United Kingdom and France. Its suite of services offers customers access via the Internet to a comprehensive database of information on 66 U.S. markets, the United Kingdom and France. Bethesda, Md.-based CoStar has 1,300 employees, including the industry’s largest professional research organization. For more information, visit www.costar.com or call (877) 7COSTAR. BUSINESS BREAKFAST FORUM

REAL ESTATE ON MEET DOWNSTATE’S NEW DEVELOPMENT CZAR Events View a current listing of local Online polls Express your opinions Patrick Foye, chairman of the Empire meetings, seminars and other about key issues of the week. State Development Corp., will discuss the big projects either underway or in the networking events of interest to real Subscribe Use the “Subscribe now” planning stages in New York. Patrick Foye estate professionals. button to get the Back issues Use the archives to find weekly print DATE: WEDNESDAY, MAY 9, 2007 Crain’s stories in any previous edition edition of Crain’s, PLACE: Sheraton New York 811 Seventh Avenue of the paper. as well as digital TIME: Networking Breakfast 8:00–8:30 a.m. Program 8:30–9:30 a.m. Residential real estate Coming soon: subscriptions to an interactive Crain’s guide with the the newspaper, Breaking news E-mail alerts from the daily Insider COST TO ATTEND: inside scoop on available properties. $60 for individual ticket(s) $600 for table(s) of ten Crain’s keep you up-to-date about political news- commercial and residential real estate. if pre-registered by May 2nd if pre-registered by May 2nd letter and the $70 thereafter. $700 thereafter. Company alerts Visitors to the Web daily Pulse health (American Express, Visa or MasterCard only) site can sign up for e-mail alerts that care newsletter. To register go to newyorkbusiness.com, or fax your business card provide news about a particular real Crain’s also offers and credit card information to “Foye Breakfast” at 212-210-0499. estate brokerage or other business. readers free YOU MUST BE PRE-REGISTERED TO ATTEND THESE EVENTS. two-week trial ALL TICKETS ARE NON-REFUNDABLE. FOR MORE INFORMATION, CALL Resources Get easy links to THE EVENTS HOTLINE AT 212-210-0739. government agencies and industry subscriptions to SPONSORED BY: groups that are involved in New York the two online real estate. newsletters.

April 16, 2007 | Crain’s New York Business | 25 CNYB 04-16-07 A 26 4/11/2007 5:48 PM Page 1

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COMINGS, GOINGS AND GLOBAL ACTIVITY BUMPED Two firms, TPG Architecture (The Phillips Group) and Perkins & Will, have dropped off the list since last year. PROJECTS Hellmuth Obata + Kassabaum asserted its global presence in 2006, leading firms on the list with 1,501 completed domestic projects and 1,790 outside the United States. PREMIERE Stephen B. Jacobs Group makes its debut on the list. The firm increased its local architectural staff by 47%, the largest gain. bekka lindström bekka New York Area’s Largest Architecture Firms Ranked by number of area architects

2006 ’06 NY area worldwide projects 2006 2005 2006 2005 construction Number of NY area total square Head of firm NY area NY area worldwide worldwide volume projects service mix footage Rank Firm Phone/Web site architects1 architects1 architects1 architects1 (in millions)2 in 20063 (% of billings) (in millions)4 Selected NY area projects/clients

Perkins Eastman 5 Bradford Perkins 169 138 267 204 $6,250.0 NY area: 196 Architecture: 80% 16.5 Flushing Metro Center, 115 Fifth Ave. President US: 528 Interiors: 12% Memorial Sloan-Kettering 1 New York, NY 10003 (212) 353-7200/www.perkinseastman.com International: 46 Planning: 6% Cancer Center: Breast and Restoration: 2% Imaging Center Kohn Pedersen Fox Associates Lee A. Polisano 139 113 198 142 $3,000.0 NY area: 18 Architecture: 80% 2.0 Citigroup, CUNY’s Advanced 111 W. 57th St. President US: 48 Interiors: 10% Science Research Center 2 New York, NY 10019 (212) 977-6500/www.kpf.com International: 72 Planning: 10% Gensler Architecture, Design & Robin Klehr Avia, Joseph Brancato 101 76 488 453 $8,100.0 NY area: 975 Architecture: 35% 17.3 New York Times Building, Planning Managing principals US: 3,300 Interiors: 55% St. John’s University 3 1230 Sixth Ave. (212) 492-1400/www.gensler.com International: 700 Planning: 7% New York, NY 10020 Restoration: 3% Hellmuth Obata + Kassabaum Kenneth Drucker, Juliette Lam, Chuck Siconolfi 98 93 984 919 n/a NY area: 86 Architecture: 70% 1.4 Yeshiva University, Arverne Inc. Senior principals US: 1,501 Interiors: 20% East master plan 4 620 Sixth Ave. (212) 741-1200/www.hok.com International: 1,790 Planning: 10% New York, NY 10011 Skidmore Owings & Merrill T.J. Gottesdiener 88 93 177 199 n/a NY area: 163 Architecture: 80% n/a Memorial Sloan-Kettering 14 Wall St. Managing partner US: 831 Interiors: 13% Mortimer B. Zuckerman 5 New York, NY 10005 (212) 298-9300/www.som.com International: 509 Planning: 7% Research Center, Freedom Tower Cooper Robertson & Partners Alexander Cooper 72 69 72 69 $395.0 NY area: 11 Architecture: 48% 0.1 Fordham University-Fieldston 311 W. 43rd St. Partner US: 93 Interiors: 2% School, Whitney Museum 6 New York, NY 10036 (212) 247-1717/www.cooperrobertson.com International: 17 Planning: 50% Mancini Duffy Anthony P. Schirripa 65 52 116 97 $810.0 NY area: 240 Architecture: 3% n/dBloomingdale’s, UBS 39 W. 13th St. Chairman, chief executive US: 315 Interiors: 94% 7 New York, NY 10011 (212) 938-1260/www.manciniduffy.com International: 260 Planning: 3% Polshek Partnership Architects Managing partners 6 65 60 65 60 $350.0 NY area: 40 Architecture: 85% 0.4 Weill Greenberg Center of 320 W. 13th St. (212) 807-7171/www.polshek.com US: 65 Interiors: 5% Weill Cornell Medical College, 8 New York, NY 10014 International: 1 Planning: 5% New York University College of Restoration: 5% Arts and Sciences Cetra/Ruddy Inc. Nancy J. Ruddy 56 63 56 63 $601.0 NY area: 58 Architecture: 70% 2.5 Barbizon/63, Weill Cornell 584 Broadway President US: 60 Interiors: 20% Faculty Club 9 New York, NY 10012 (212) 941-9801/www.cetraruddy.com International: 0 Planning: 5% Restoration: 5% HLW Theodore Hammer, Susan Boyle, John Gering 56 54 98 68 $650.0 NY area: 123 Architecture: 45% 2.8 Hilton Grand Vacations Club, 115 Fifth Ave. Managing partners US: 200 Engineering: 10% United Nations capital master 10 New York, NY 10003 (212) 353-4600/www.hlw.com International: 52 Interiors: 35% plan Planning: 5% Restoration: 5% Stephen B. Jacobs Group Stephen B. Jacobs 56 38 56 38 $500.0 NY area: 62 Architecture: 65% 1.4 325 Fifth Ave., 320 W. 38th St. 677 Fifth Ave. President US: 88 Interiors: 25% 11 New York, NY 10022 (212) 421-3712/www.sbjgroup.com International: 2 Restoration: 10% Beyer Blinder Belle Architects & Frederick Bland 55 55 65 65 $269.3 NY area: 134 Architecture: 70% 1.4 Restoration of Temple Planners Managing partner US: 189 Interiors: 8% Emanu-El, Manhattan School 12 41 E. 11th St. (212) 777-7800/www.beyerblinderbelle.com International: 11 Planning: 15% of Music New York, NY 10003 Restoration: 7% Fxfowle Architects Bruce Fowle 55 48 57 49 n/d NY area: 46 Architecture: 70% 0.5 11 Times Square, national 22 W. 19 St. Senior principal US: 48 Interiors: 15% headquarters for the National 13 New York, NY 10011 (212) 627-1700/www.fxfowle.com International: 5 Planning: 15% Audubon Society Costas Kondylis and Partners Costas Kondylis 51 45 51 45 $1,700.0 NY area: 37 Architecture: 75% 4.4 Riverplace II, 10 Barclay St. 31 W. 27th St. Principal and founder US: 40 Interiors: 21% 14 New York, NY 10001 (212) 725-4655/www.kondylis.com International: 2 Planning: 4% Ehrenkrantz Eckstut & Kuhn Stanton Eckstut 51 47 78 71 $127.0 NY area: 50 Architecture: 100% 0.7 Coney Island redevelopment, Architects Principal US: 120 Rego Park mixed-use 15 23 E. Fourth St. (212) 353-0400/www.eekarchitects.com International: 8 New York, NY 10003 Hillier Architecture Steve Gifford 50 74 118 150 $877.0 NY area: 55 Architecture: 70% n/d East River Science Park, 275 Seventh Ave. Managing principal US: 279 Interiors: 20% 111 Central Park North 16 New York, NY 10001 (212) 629-4100/www.hillier.com International: 21 Planning: 6% Restoration: 4% Robert A.M. Stern Architects Partners 7 50 39 50 39 $104.4 NY area: 36 Architecture: 90% 0.1 15 Central Park West, Museum 460 W. 34th St. (212) 967-5100/www.ramsa.com US: 117 Interiors: 5% for African Art 17 New York, NY 10001 International: 22 Planning: 5% Continued

26 | Crain’s New York Business | April 16, 2007 CNYB 04-16-07 A 27 4/11/2007 5:47 PM Page 1

REPORT REAL ESTATE

2006 ’06 NY area worldwide projects 2006 2005 2006 2005 construction Number of NY area total square Head of firm NY area NY area worldwide worldwide volume projects service mix footage Rank Firm Phone/Web site architects1 architects1 architects1 architects1 (in millions)2 in 20063 (% of billings) (in millions)4 Selected NY area projects/clients Swanke Hayden Connell Richard S. Hayden 50 37 90 64 n/a NY area: 70 Architecture: 53% 1.8 NYC Office of Emergency Architects Managing principal US: 120 Interiors: 35% Management, 18 295 Lafayette St. (212) 226-9696/www.shca.com International: 80 Planning: 4% Macy’s/Federated Department New York, NY 10012 Restoration: 8% Stores Spector Group Scott E. Spector, Marc B. Spector, Michael H. 49 42 51 44 $420.0 NY area: 85 Architecture: 40% 3.6 Och-Ziff Capital Management 19 W. 44th St. Spector US: 98 Interiors: 40% Group, RexCorp Plaza 19 New York, NY 10036 Principals International: 5 Planning: 13% (212) 599-0055/www.spectorgroup.com Restoration: 7% SLCE Architects Peter Claman 48 43 48 43 $910.0 NY area: 120 Architecture: 92% 3.3 The Avery, Element 841 Broadway Partner US: 125 Interiors: 5% 20 New York, NY 10003 (212) 979-8400/www.slcearch.com International: 0 Planning: 3% Urbahn Architects Martin D. Stein 46 45 46 45 $312.0 NY area: 41 Architecture: 80% 1.6 Stony Brook student housing 49 W. 37th St. President, chief executive US: 47 Interiors: 5% complex, Metropolitan Schools 21 New York, NY 10018 (212) 239-0220/www.urbahn.com International: 2 Planning: 3% Restoration: 12% STV Architects Inc. David Miles Ziskind 42 36 83 73 $748.0 NY area: 87 Architecture: 46% 3.8 High School for Construction 225 Park Ave. South Senior vice president US: 906 Engineering: 36% Trades, Engineering and 22 New York, NY 10003 (212) 777-4400/www.stvinc.com International: 0 Interiors: 3% Architecture; JetBlue garage at Planning: 5% JFK International Airport Restoration: 10% Davis Brody Bond Aedas 8 Partners 9 40 40 40 40 $140.0 NY area: 20 Architecture: 70% 0.4 World Trade Center Memorial 315 Hudson St. (212) 633-4700/www.davisbrody.com US: 31 Interiors: 10% Museum, Columbia University 23 New York, NY 10013 International: 8 Planning: 15% Science Building in association Restoration: 5% with Rafael Moneo Valles Arquitecto Gruzen Samton Architects Michael Kazan 39 41 39 41 $350.0 NY area: 86 Architecture: 70% 1.3 J Condominiums, Port Imperial Planners & Interior Designers Principal US: 93 Interiors: 15% Ferry Terminal 24 320 W. 13th St. (212) 477-0900/www.gruzensamton.com International: 2 Planning: 7% New York, NY 10014 Restoration: 8% Pei Cobb Freed & Partners Partners 10 38 45 38 45 $88.0 NY area: 7 Architecture: 85% 0.0 New York-Presbyterian Architects (212) 751-3122/www.pcf-p.com US: 22 Interiors: 10% Hospital, Fiterman Hall 25 88 Pine St. International: 12 Planning: 5% New York, NY 10005 New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Crain’s New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but there is no guarantee that these listings are complete. To qualify for this list, firms must be architecture firms with an office in the New York area. All information was supplied by the firms. In case of tied figures, firms are listed alphabetically. n/a Not available. n/d Not disclosed. 1-Full-time and full-time-equivalent registered architects, as of Dec. 31. 2-Dollar amounts include only those projects completed in 2006. 3-Includes projects in design stage, under construction or completed in 2006. U.S. numbers include the New York area. International numbers are for projects outside of the United States. 4-Total square footage for projects completed in 2006. 5-Larsen Shein Ginsberg Snyder combined its technical resources with Perkins Eastman, effective Jan. 1, 2006. 6-Joseph L. Fleischer, Timothy P. Hartung, Duncan R. Hazard, Richard M. Olcott, Susan T. Rodriguez, Todd H. Schliemann. 7-Robert A.M. Stern, Robert S. Buford, Randy M. Correll, Alexander P. Lamis, Grant F. Marani, Roger H. Seifter, Paul L. Whalen, Graham S. Wyatt. 8-Davis Brody Bond became a member of the Aedas group through an equity investment in Aedas SA in March 2006. 9-J. Max Bond Jr., Steven M. Davis, William H. Paxson, Christopher K. Grabé, Carl K. Krebs. 10-Henry N. Cobb, Michael D. Flynn, George H. Miller, Ian Bader, Yvonne Szeto. Research: Denise Southwood and Adrianne Pasquarelli

JOE TORRE ON THE ART OF MANAGING “1919. Babe Ruth hit a record 29 home runs. And J.H.Cohn founded J.H.Cohn.” TM/© 2007 Babe Ruth by CMG Worldwide/ www.BabeRuth.com “Both baseball and the accounting business made history in 1919, as Babe Ruth hit a single season record 29 home runs, and Julius H. Cohn, one of the country’s earliest certified public accountants, founded J.H. Cohn.”While the Babe went on to hit 714 home runs, Mr. Cohn served for 44 years as the fir m’s managing partner.Today, in its 88th year, J.H. Cohn stands proudly as the largest regional accounting and consulting firm in the New York area. How Are You Managing? SM

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April 16, 2007 | Crain’s New York Business | 27 CNYB 04-16-07 A 28 4/11/2007 4:24 PM Page 1

REPORT New York PROWESS Real Estate Deals New Jersey PRICING Searchends at old Google office S IGNAGE AVAILABLE Up to 100,000 sf available at After-school program since it was launched by owner Steve One Meadowlands Plaza, East Rutherford, NJ Villani’s grandfather. overseer finds room In the past five years, the store has started carrying more wine than to train staff, host whiskey.In its new location—which will include 1,500 square feet of sell- confabs; Circle spirits ing space and a 1,400-square-foot, nonprofit that moni- temperature-controlled basement— tors after-school pro- Columbus Circle Liquor will cater For more information please contact: grams is set to gobble even more to oenophiles. up some former Gog- “We’ll still have a large selection David Stifelman gle Inc. office space at of liquor, but we’ll have a larger fine 201.460.3353 A1440 Broadway. The After-School wine room,” Mr. Villani says. [email protected] Corp., which was established in He has hired Ronnette Riley Ar- 1998 with a grant from George chitect, which fashioned the Apple Katie Kennedy Soros’ Open Society Institute, has store in SoHo, to design his new 201.508.5229 signed a 10-year lease for 30,860 store,slated to open by late summer. [email protected] square feet. It will move into the Property owner Omnispective space in the first week of July. chose Columbus Circle Liquor be- David DeMatteis The asking rent at the building, cause of the store’s loyal following. 201.460.3383 between West 40th and West 41st The landlord “really wanted high- [email protected] streets, is $52 a square foot. end shops and services for the neigh- After-School—which oversees borhood,” says Faith Hope Conso- more than 300 programs in the city, lo, the Prudential Douglas Elliman serving 250,000 children in kinder- broker who negotiated the deal for garten through high school—is now Omnispective. located in 14,000 square feet at the Broadway West Enterprises rep- Open Society Institute’s offices at resented the tenant in the deal. The 925 Ninth Ave. asking rent was $250 per square foot. “Our mission is to improve the —elisabeth butler quality of after-school programs, which we do by training staff and hosting conferences,” says Charissa Logistics firm, Fernandez, the organization’s chief locate thyself operating officer. “Our new office will have training facilities and is a company that has been based in centrally located, so it will enable us midtown for more than 15 years is to better serve our mission.” relocating its headquarters to lower After-School’s offices on Ninth Manhattan. Choice Logistics Inc., Avenue lacked conference rooms which manages high-tech equipment and didn’t have enough space to train for a roster of firms including Dell employees on-site, Ms. Fernandez and Cisco Systems, has subleased says. The nonprofit was in the mar- 34,000 square feet on the eighth and ket for a new home for close to a year. 10th floors of 1 Whitehall St. “They wanted to be on one effi- The asking rent at the building, cient floor plate in a building with lots between Bridge and Stone streets,is of natural light,”says Lance Korman, $37 a square foot. The lease runs a broker at Newmark Knight Frank through December 2013. who represented After-School. Choice, which has 175 employ- Monday Properties, the build- ees in New York,operates in 37 coun- ing’s landlord, represented itself in tries. It is relocating from 29,000 the transaction. square feet at 733 Third Ave. Goggle vacated 170,000 square “We loved our building, but the feet at 1440 Broadway last year and rents are going up significantly,”says relocated to 111 Eighth Ave. Other Michael Katz,Choice’s chief execu- tenants at 1440 Broadway include tive. Management considered sev- The New York Times Co.-owned eral locations, including Brooklyn. Web site About.com,law firm Skad- “This deal was a 50% discount on den Arps Slate Meagher & Flom midtown, and if you take into ac- and designer Liz Claiborne Inc. count the space was already built —julie satow and we have an aggressive conces- Manhattan / Brooklyn / Queens / sion package, it was an even greater Bronx / Westchester Staten Island Nassau value,” says David Hollander, a bro- 275 Madison Ave. 205 Montague Street 118-35 Queens Blvd. Spirits are willing ker at CB Richard Ellis who repre- 3rd Floor 3rd Floor 14th Floor to stay near home sented the tenant. New York, NY 10016 Brooklyn, NY 11201 Forest Hills, NY 11375 The Staubach Co. represented P 212.696.2500 P 718.238.8999 P 718.275.3400 columbus circle Liquor Store Inc. insurance firm St. Paul Travelers, F 212.696.0333 F 718.238.6091 F 718.275.5478 plans to stay close to its namesake which sublet the space to Choice. location for at least another 15 years. The property at 1 Whitehall,also The 73-year-old family business known as The Topps Co.building,is has signed a lease for nearly 3,000 the headquarters of the famous base- 1802 Broadway WWW.MASSEYKNAKAL.COM square feet at ,be- ball card company.Other tenants in- tween West 58th Street and Colum- clude the New York Landmarks bus Circle,just one block north of its Conservancy, York Claims Service current location. The company has and Vision Financial Markets. operated within a two-block radius —julie satow

28 | Crain’s New York Business | April 16, 2007 CNYB 04-16-07 A 29 4/12/2007 1:02 PM Page 1

THE WEEKS AHEAD

THIS WEEK’S EVENTS APRIL 19 workshop on improving negotiation [email protected]. Symphony Space, 2537 Broadway. Fee: APRIL 17 Center for New York City Law, Center skills. 7:00 p.m. to 8:30 p.m., St. Jean APRIL 24 $25. (212) 864-5400. Action Coach holds workshop on for Real Estate Studies and New York Baptiste Church, East 76th Street and Podcast Now Studio holds seminar on APRIL 24 improving your business. 8:15 a.m. to City Law Department hold course on Lexington Avenue, downstairs, marketing and promoting digitally. 6:00 Arts & Business Council of New York 10:30 a.m., 989 Sixth Ave., fourth floor. trends in city land use and development. community center. Fee: $10. (212) 980- p.m. to 8:00 p.m., 19 W. 21st St., suite and American Express hold workshop Fee: $95. (646) 862-1710 or 2:00 p.m. to 6:00 p.m., New York Law 2526 or [email protected]. 1104. Fee: $25. (212) 633-0191. on winning corporate sponsorship. 9:00 [email protected]. School, 47 Worth St. Fee: $40. APRIL 23 APRIL 24 a.m. to 12:30 p.m., 200 Vesey St., APRIL 17 (212) 431-2115 or [email protected]. Seedco holds restaurant management Facebook, PR Newswire and Business mezzanine. Fee: $35 Arts & Business Bedford Stuyvesant Restoration Corp. APRIL 20 program. 2:00 p.m. to 4:30 p.m., 110 Development Institute hold conference Council members, $55 nonmembers. holds workshop on creating and Pace University’s Small Business William St., seventh-floor boardroom. on social media’s impact on (212) 279-5910, ext. 29. understanding financial statements. Development Center holds workshop Free. (212) 618-8862 or communications and branding. 1:45 APRIL 24 6:00 p.m. to 8:30 p.m., 1368 Fulton St., on QuickBooks and basic bookkeeping. [email protected]. p.m. to 6:00 p.m., Microsoft Executive Networking for Professionals holds Brooklyn. Free. (718) 636-6924. 9:00 a.m. to 5:00 p.m., 1 Pace Plaza, APRIL 23 Customer Briefing Center, 1290 Sixth networking lunch program. 1:00 p.m. to APRIL 17, MAY 1 room W-404. Fee: $149. Women in Housing and Finance Inc. Ave., sixth floor. Fee: $195. 3:00 p.m., Palm Too, 840 Second Ave. Wells Fargo Insurance Services holds (212) 618-6655 or [email protected]. holds career networking program. 6:00 (212) 765-8043. Fee: $39.90 members, $49.90 small business networking meeting. 7:15 p.m. to 8:00 p.m., Bank of America, APRIL 24 nonmembers. (718) 625-1369. a.m. to 8:30 a.m., 330 Madison Ave. APRIL 23-29 9 W. 57th St., auditorium 2M. Fee: $15 The New York Times holds program on APRIL 24 Free. (212) 682-7500, ext. 224, or APRIL 23 members, $20 nonmembers and $5 the greening of New York City. 7:00 Nationwide Equities Corp. holds [email protected]. Career Counselors Consortium holds students. (212) 439-1056 or p.m. to 8:30 p.m., Peter Norton Continued on Page 30 APRIL 18 New York Commercial Real Estate Women Network holds forum on housing New Yorkers. 6:00 p.m. to 8:00 p.m., Harvard Club, 27 W. 44th St. Fee: $60 members, $85 nonmembers and $40 students. (212) 499-6573 or [email protected]. APRIL 18 Five O’Clock Club’s Executive Job Search Group holds seminar on developing new targets for a job search. 6:30 p.m. to 8:30 p.m., 11 Penn Plaza, fifth floor. Fee: $50. (914) 788-5482. APRIL 18 Bank of New York, SearchWorld USA and Black Enterprise magazine hold workshop on putting a business plan into action. 6:00 p.m. to 8:00 p.m., 101 Barclay St., 10th floor. Fee: $65. (917) 213-1232 or [email protected]. APRIL 18 Score NYC holds seminar on business plans. 2:00 p.m. to 5:00 p.m., American Management Association, 1601 Broadway, eighth floor. Fee: $40 in advance, $50 at door. (212) 264-4507 or [email protected]. APRIL 18 New York Investing Meetup holds seminar on making money in the stock market. 6:30 p.m. to 8:30 p.m., 1290 Sixth Ave. Free. (212) 255-7327 or [email protected]. APRIL 19 Crain’s New York Business holds networking breakfast and program with Gov. Eliot Spitzer. 8:00 a.m. to 9:30 a.m., New York Hilton, 1335 Sixth Ave. Fee: $70. (212) 210-0739 or www.newyorkbusiness.com. APRIL 19 KIP Learning Center and U.S. Small Business Administration hold workshop on using a Web site to drive sales. 5:45 p.m. to 8:30 p.m., 26 Federal Plaza, room 3305. Fee: $20 if preregistered by April 18; $40 thereafter. (646) 546-5671. APRIL 19 Graphic Artists Guild, New York chapter, holds seminar on conquering confusing contracts. 7:00 p.m. to 9:00 p.m., Pratt/Manhattan Institute, 144 W. 14th St. Fee: $20 members, $35 nonmembers. (212) 791-3400, ext. 11, or [email protected]. APRIL 19 Financial Times and WCBS Radio hold leadership seminar. 12:00 p.m. to 4:00 p.m., Alice Tully Hall, 70 Lincoln Center Plaza. Fee: $269. (212) 546-4625. APRIL 19 NYC Business Solutions and Commerce Bank hold seminar on how to retain key employees. 8:30 a.m. to 10:30 a.m., 2 Wall St. Free. (212) 618-8714 or [email protected].

TO LIST YOUR EVENT

Listings can be submitted only through the Crain’s Web site. To submit a calendar listing, go to www.newyorkbusiness.com and click on “Events.” Sponsors have a choice of several free or paid list- ing options. All business events will be posted online within two business days.

April 16, 2007 | Crain’s New York Business | 29 CNYB 04-16-07 A 30 4/12/2007 12:55 PM Page 1

THE WEEKS AHEAD

Continued from Page 29 to 10:00 a.m., Harvard Club, 35 W. 44th APRIL 30-MAY 6 publicity. 6:00 p.m. to 8:00 p.m., TRS networking reception. 6:00 p.m. to 8:00 St., Cambridge II. Free. Registration APRIL 30 Inc. Professional Suite, 44 E. 32nd St., p.m., 795 Eighth Ave., second floor. required. (212) 823-8569 or FaceToFace Speed Networking holds 11th floor. Fee: $45 members, $55 Free. (917) 975-5985 or [email protected]. networking reception. 6:15 p.m. to 9:00 nonmembers. (718) 740-8572 or [email protected]. APRIL 25 p.m., Skylight, 402 W. 34th St. Fee: [email protected]. APRIL 24-25 New York Society of Security Analysts $37.50. (718) 757-6933. MAY 3 Legal Momentum holds conference on holds course on research report MAY 2 Liberty Mutual Property holds building New York. 8:00 a.m. to 4:00 writing. 1:00 p.m. to 4:30 p.m., 1177 B’nai B’rith Real Estate Unit holds workshop on disaster preparedness. 8:00 Minuto Zammit Smalls p.m., Museum of Jewish Heritage, Sixth Ave., second floor. Fee: $215 lunch program with Brian Neilinger a.m. to 4:30 p.m., New York Marriott 36 Battery Place. Free. (212) 413-7540 members, $275 nonmembers. of CIBC World Markets on accessing Marquis, 1535 Broadway. Free. or [email protected]. (646) 871-3429. real estate capital. 12:00 p.m. to 2:00 (617) 357-9500, ext. 20172, or APRIL 25 APRIL 27 p.m., Cornell Club, 6 E. 44th St., Ivy [email protected]. Jefferson Wells holds forum on saving NYC Industrial and Technology Room. Fee: $55 in advance, $65 at MAY 5 on your Sarbanes-Oxley bill. 8:00 a.m. Assistance Corp. holds seminar on green door. (212) 885-7239 or Global Purchasing Cos. holds workshop building products. 8:30 a.m. to 12:00 [email protected]. on opening and running a retail store. Funk & Avsar Wender More meetings online at p.m., 26 Federal Plaza, sixth-floor GSA MAY 3 10:00 a.m. to 5:00 p.m., 1133 Broadway, www.newyorkbusiness.com conference room E. Free. Registration Tracey Picon Communications and suite 245. Fee: $189. (212) 414-4001 or Click on “Events” required. Space is limited. Manhattan Chamber of Commerce www.globalpurchasinggroup.com. (212) 442-2990. hold seminar on generating free —adrianne pasquarelli

O’Connell, Nordquist, Contreras BlackBerry® 8800 with GPS AWARDS SEEKING TOP ENTERPRISES IN NEW YORK CRAIN’S NEW YORK BUSINESS seeks nominations for its 12th annual Small Business Awards. The six Because losing your way winners will have distinguished themselves by showing a pattern of growth in their businesses and could mean losing their business. by contributing to the quality of life in their communities. Firms must be for-profits that Introducing the BlackBerry® 8800. Only from have been in business for at least Cingular. It’s the slimmest BlackBerry device three years. They must employ no ever, yet it’s packed with features like built-in more than 150 people, have GPS, Push to Talk, and expandable memory, annual sales of no more than for small businesses everywhere. $25 million and be head- quartered in New York City. Companies may nominate themselves or may be nominated > Built-in GPS navigation by a business contact. The entry deadline is noon on May 14. > “Pearl-like” trackball and full QWERTY keyboard BUY 3 AND GET A Winners will be profiled in the Aug. 13 issue. > $ ® Access to work and personal email 100 VISA To nominate a business, REWARD CARD send the company’s name and > Global connectivity in 125 countries with 1- or 2-year service address and a description of its agreement. Mail-in rebate form business and civic accomplish- > Runs on America’s largest high-speed wireless and proof of purchase required. ments to Crain’s Small Business data network Awards, 711 Third Ave., New York, NY 10017. The Information BlackBerry 8800 can also be e-mailed to from Cingular [email protected] or faxed to (212) 210-0799. Among last year’s honorees were Lexy Funk and Vahap Avsar, founders of trendy retailer Brooklyn Industries; David Wender of WhenTech, a company that makes software used by options traders; and Jeffrey Smalls, whose eponymous elec- trical contracting firm has found success specializing in transit Go to www.cingular.com/blackberry-promo and request a consultation with projects. Winners also included a Cingular Small Business Advisor or visit a Cingular store near you. Marco Minuto, whose Red Castle Bakeries churns out meat patties *Cingular also imposes monthly a Regulatory Cost Recovery Charge of up to $1.25 to help defray costs incurred in complying with State and Federal telecom regulation; State and Federal Universal in ever-increasing numbers and Service charges; and surcharges for customer-based and revenue-based state and local assessments on Cingular. These are not taxes or government-required charges. descriptions; Gary Zammit, who Coverage is not available in all areas. Limited-time offer. See store for complete details. Other conditions and restrictions apply. See contract and rate plan brochure for details. Subscriber must live and have a mailing address bought a sleep laboratory and within Cingular’s owned network coverage area. Up to $36 activation fee applies. Offer available at participating locations. Early Termination Fee: None if cancelled in the first 30 days; thereafter $175. Some agents impose additional turned it into Clinilabs, a big drug fees. Unlimited Voice Services: Unlimited voice services are provided solely for live dialog between two individuals. Offnet Usage: If your minutes of use (including unlimited services) on other carriers’ networks (“offnet usage”) during any two consecutive months exceed your offnet usage allowance, Cingular may at its option terminate your service, deny your continued use of other carriers’ coverage, or change your plan to one imposing usage charges for tester; and James O’Connell, offnet usage. Your offnet usage allowance is equal to the lesser of 750 minutes or 40% of the Anytime minutes included with your plan. Rebate Debit Card: Allow 10–12 weeks for rebate debit card. Rebate debit card not available at Clifford Nordquist and Charles all locations; void where prohibited, taxed, or restricted. Must be customer for 30 consecutive days. Must be postmarked by 6/15/07. VISA Card: Cingular VISA reward card offer valid only with purchase of a qualified Cingular device with Contreras, whose Just Bagels activation on a qualified service plan from a participating Cingular Wireless store, DMDR, or Authorized Agent between February 20 – May 15, 2007. Sales tax calculated based on price of unactivated equipment. Certain email systems may require additional hardware and/or software to access. The BlackBerry and RIM families of related marks, images, and symbols are the exclusive properties of and trademarks or registered trademarks of Research In Motion Limited Manufacturing has grown to have – used by permission. RIM and Research In Motion are registered in the U.S. Patent and Trademark Office. Other trademarks and service marks are the property of their respective owners. ©2007 AT&T Knowledge Ventures. All rights a nationwide reach. reserved. AT&T, AT&T logo, Cingular, and Cingular logos are trademarks of AT&T Knowledge Ventures and/or AT&T affiliated companies.

30 | Crain’s New York Business | April 16, 2007 Project2 4/11/07 1:18 PM Page 1 nb16p32_33cls.qxp 4/12/07 2:30 PM Page 32

BOOKKEEPING SERVICES FINANCIAL PLANNER PUBLIC & LEGAL NOTICES

Notice of formation of Limited Partnership. Notice of Qualification of Morgan Stanley NOTICE OF FORMATION of Animal Vocation Name: Selfhelp (KIV) Associates, L.P. (“LP”). Managed Futures HV, L.P. Authority filed with Resources, LLC. Articles of Organization Certificate of Limited Partnership filed with NY Dept. of State on 3/12/07. Office location: filed with the Secretary of State of NY NY Secretary of State (“SSNY”) on January NY County. Principal business address: 330 (SSNY) on 1/12/07. Office location: NY 26, 2007, NY office location is New York Madison Ave., 8th Fl., NY, NY 10017. LP County. SSNY has been designated as County. The SSNY has been designated as formed in Delaware (DE) on 2/22/07. NY Secy. agent upon whom process against it may BUSINESS SERVICES agent of the LP upon whom process against of State designated as agent of LP upon be served. The Post Office address to it may be served. The SSNY shall mail a copy whom process against it may be served. NY which the SSNY shall mail a copy of any of any process to LP at 520 Eighth Avenue, Secy. of State shall mail process to: c/o CT process against the LLC served upon New York, NY 10018. Purpose/character of Corporation System (CTCS), 111 8th Ave., him/her is C/O the LLC, P.O. Box 4178, LP is to engage in any lawful act or activity. 13th Fl., NY, NY 10011. DE address of LP: Grand Central Station, New York, NY CTCS, 1209 Orange St., Wilmington, DE 10163. Purpose of LLC: to engage in any To place your classified NEW YORK BURGER CO. FRANCHISING 19801. Name/address of genl. ptr. available lawful act or activity. ad call John Gallagher LLC Articles of Org. filed NY Sec. of State from SSNY. Cert. of LP filed with DE Secy. of (SSNY) 2/15/07. Office in New York Co. State, 401 Federal St., Dover, DE 19901. NOTICE OF FORMATION OF LIMITED LIABILITY @ 212-210-0189 SSNY desig. agent of LLC upon whom Purpose: any lawful activity. COMPANY. NAME: CHADERTON ADVISORS,LLC. process may be served. SSNY shall mail Articles of Organization were filed with the RELOCATION SERVICES copy of process to Einbinder & Dunn LLP, Notice of Qualification of Praesidian Capital Secretary of State of New York (SSNY) on 104 W. 40th St., NY, NY 10018. Purpose: Management II, LLC. Authority filed with NY 02/01/07. Office location: New York County. Any lawful purpose. Dept. of State on 3/5/07. Office location: NY SSNY has been designated as agent of the County. LLC formed in Delaware (DE) on LLC upon whom process against it may be served. SSNY shall mail a copy of process Notice of formation of CHINESE WAH LAI 3/2/07. NY Secy. of State designated as agent to the LLC, 845 3rd Avenue, 6th Floor, New LLC a NYS LLC Formation filed with SSNY of LLC upon whom process against it may be York, New York 10022. Purpose: For any on 11/16/06. Off. Loc.: New York Co. SSNY served. NY Secy. of State shall mail process lawful purpose. designated as agt. of LLC, upon whom to the principal business address of the LLC: process may be served. SSNY shall mail 419 Park Ave. South, NY, NY 10016. DE copy of process to: The LLC, 20-22 Mulberry address of LLC: c/o Corporation Service Co., Notice of Formation of 62 PEARL STREET Street, New York, NY 10013. Purpose: Any 2711 Centerville Rd., Ste. 400, Wilmington, ASSOCIATES, LLC, a domestic Limited Lawful purposes. DE 19808. Arts. of Org. filed with DE Secy. of Liability Company (LLC). Articles of State, 401 Federal St., Ste. 4, Dover, DE 19901. Organization filed with Secretary of State Purpose: any lawful activity. on 11/29/06. NY Office location NEW YORK Notice of formation of DP 10 West 33RD LLC. County. Secretary of State is designated as Arts. Of Org. filed with Secty. Of State of NY Notice of Qualification of Tourneau, LLC. agent upon whom process against the LLC (SSNY) on 3/21/2003. Office location: New Authority filed with NY Dept. of State on may be served. Secretary of State shall York County. SSNY designated as agent of 3/6/07. Office location: NY County. LLC mail a copy of any process against the LLC REAL ESTATE LLC upon whom process against it may be formed in Delaware (DE) on 3/1/07. NY served upon him/her to C/O THE LLC, 211 served. SSNY shall mail process to: c/o Diane AUCTION OFFICE SPACE Secy. of State designated as agent of LLC W. 56TH STREET, STE. 10M, NEW YORK, Pachetti, 485 Park Ave., NY, NY 10022. upon whom process against it may be NY 10019. Purpose: To engage in any lawful Purpose: any lawful activity. 190 Ac Approved Luxury MIDTOWN COMMERCIAL served. NY Secy. of State shall mail process act or activity. Subdivision Sullivan Co., NY REAL ESTATE to: 3 E. 54th St., NY, NY 10022, principal For All office & loft SPACES Notice of Formation: 192 Surf LLC. Art. of business address of the LLC. DE address of DCD ASSET MANAGEMENT LLC App. For “Highland Estates” 16 Lots Org. filed with Sec. of State of NY (SSNY) 500-50,000 SF LLC: c/o Corporation Service Co., 2711 Auth. filed NY Sec. of State (SSNY) 2/23/07. on 2/22/07. Office loc.: New York County. Centerville Rd., Ste. 400, Wilmington, DE LLC was organized in DE on 11/18/05. Office Incl. 40 Ac Commercial UNDER MARKET SUBLETS-NO FEE! Potential for 9 more lots! Sells SSNY designated as agent of LLC upon 19808. Arts. of Org. filed with DE Secy. of in NY Co. SSNY desig. As agent of LLC upon Search our listings @ www.midcomre.com whom process against it may be served. State, 401 Federal St., Ste. 4, Dover, DE 19901. whom process may be served. SSNY to mail April 28 @ 4:37PM “As-One” Call Paul 212 947-5500 x 100 SSNY shall mail process to: c/o David Selig, Purpose: any lawful activity. copy of process to 11 E. 44th St., Ste. 901, 529 West 42nd Street, Suite 9-M, NY, NY NY, NY 10017. Principal office at 2711 NO MINIMUM STARTING BID! 10036. Purpose: Any lawful activity. Notice is hereby given that a license, number Centerville Rd., Ste. 400, Wilmington, DE 800-243-0061 Advertise on 1190244 for beer, liquor and wine, has been 19808. Cert. of Org. filed with SSDE, John G. AbsoluteAuctionRealty.com Notice of Qualification of AGBH Holtsville, applied for by Lima’s Taste Ceviche Bar, Inc. to Townsend Bldg., 401 Federal St., Dover, DE www.newyorkbusiness.com L.L.C. Authority filed with NY Dept. of State on sell beer, liquor and wine at retail in a restaurant 19901. Purpose: Any lawful purpose. COMMERCIAL PROPERTY 3/8/07. Office location: NY County. Principal under the Alcoholic Beverage Control Law at business address: c/o Angelo Gordon & Co., 122 Christopher Street, New York, NY 10014 Notice of Formation of 65-15 ALDERTON, **** 326 North Michigan Avenue **** Call John Gallagher L.P., 245 Park Ave., 26th Fl., NY, NY 10167. for on-premises consumption. LLC, a foreign Limited Liability Company New Bldg. MAG MILE LLC formed in Delaware (DE) on 2/22/07. NY (LLC). Articles of Organization filed with ** 4,000-16,000-80,000 Sq. Ft. ** @ 212-210-0189 Secy. of State designated as agent of LLC NOTICE OF FORMATION OF PROFESSIONAL Secretary of State on 1/17/07. NY Office upon whom process against it may be served. SERVICE LIMITED LIABILITY COMPANY. location: NEW YORK County. Secretary of Loukas Development (312) 938-1500 NY Secy. of State shall mail process to: CT NAME: SWEET DREAMS ANESTHESIOLOGY, State is designated as agent upon whom OFFICE SPACE Corporation System, 111 8th Ave., NY, NY PLLC. Articles of Organization were filed process against the LLC may be served. 10011, registered agent upon whom process with the Secretary of State of New York Secretary of State shall mail a copy of any may be served. DE address of LLC: c/o The (SSNY) on 03/02/07. Office location: New process against the LLC served upon Corporation Trust Co., 1209 Orange St., York County. SSNY has been designated as him/her to C/O THE LLC, 21 E. 40TH ST., EXECUTIVE OFFICE SUITES Wilmington, DE 19801. Arts. of Org. filed with agent of the PLLC upon whom process 12TH FL., NEW YORK, NY 10016. Purpose: DE Secy. of State, 401 Federal St., Dover, DE against it may be served. SSNY shall mail a To engage in any lawful act or activity. 212.573.0909 19901. Purpose: any lawful activity. copy of process to the PLLC, c/o Segal, Tesser & Ryan, LLP, 509 Madison Avenue, DIGITAL PHALANX, LLC, Articles of Org. filed Notice of Formation of RHR West 100th Street New York, New York 10022. Purpose: For N.Y. Sec. of State (SSNY) 17th day of January, FurnishedOfficesNYC.com LLC. Arts. of Org. filed with Secy. of State of the practice of the profession of Medicine. 2007. Office in New York Co. at 9 East 75th NY (SSNY) on 3/31/06. Office location: NY Street, Suite 2C, New York, New York 10021. OFFICE SPACE County. SSNY designated as agent of LLC Notice of Qualification of Squam Ventures, SSNY desig. agt. upon whom process may be upon whom process against it may be served. LLC, App. for Auth. filed Sec'y of State served. SSNY shall mail copy of process to 9 SSNY shall mail process to: c/o CT Corporation (SSNY) 10/31/02. Office location: NY East 75th Street, Suite 2C, New York, New South Westchester Executive Park System, 111 8th Ave., NY, NY 10011, registered County. LLC org. in DE 10/30/02. SSNY York 10021. Reg. Agt. upon whom process agent upon whom process may be served. designated as agent of LLC upon whom may be served: Spiegel & Utrera, P.A., P.C. 45 Purpose: any lawful activity. process against it may be served. SSNY John Street, NYC 10038 1 800 576-1100 1 Executive Boulevard shall mail copy of process to 645 Fifth Ave., Purpose: Any lawful purpose. 18th Fl., NY, NY 10022, the principal office Notice of Formation of Hamptons 39 LLC. addr. of LLC. Cert. of Form. on file: SSDE, Notice of Qualification of WBM 475 Fifth Owner Yonkers, New York Arts. of Org. filed with NY Dept. of State on Townsend Bldg., Dover, DE 19901. LLC. Authority filed with Secy. of State of N.Y. 4/3/07. Office location: NY County. Secy. of Purpose: any lawful activities. (SSNY) on 2/28/07. Office location: NY County. State designated as agent of LLC upon whom LLC formed in Delaware (DE) on 2/20/07. process against it may be served. Secy. of Notice of Formation of Manhattan SSNY designated as agent of LLC upon whom State shall mail process to: c/o Kenilworth Endocrinologist PLLC. Arts. of org. filed with process against it may be served. SSNY shall Equities Ltd., 825 3rd Ave., NY, NY 10022, Secy. of State of N.Y. (SSNY) on 1/25/07. mail process to: c/o National Registered principal business address of the LLC. Office location: NY County. Principal business Agents, Inc., 875 Avenue of the Americas, Ste. Purpose: any lawful activity. address: 130 West 12th Street, Ste 7D, NY, 501, NY, NY 10001, registered agent upon NY 10011. SSNY designated as agent of whom process may be served. DE address of Notice of Formation of DPA HAVEN, LLC. PLLC upon whom process against it may LLC: 160 Greentree Drive, Ste. 101, Dover, DE Arts. of Org. filed with Secy. of State of NY be served. SSNY shall mail copy of any 19904. Arts. of Org. filed with DE Secy. of (SSNY) on 1/14/2005. Office location: NY process against PLLC served upon: 43 State, 401 Federal St., Ste. 4, Dover, DE 19901. County. SSNY designated as agent of LLC Greenwich Avenue, Apt. 1, NY, NY 10014. Purpose: any lawful activity. upon whom process against it may be Purpose: to practice medicine. served. SSNY shall mail process to: c/o Name of For. LLC: LDVF II Plaistow LLC. Appl. The Dermot Company, 320 W. 57th St., Notice of Qualification of Lion Hound Capital for Auth. filed with Sec. of State of NY: 2/7/07. Building Size: 112,000 rsf Park Amenities 5th Fl., NY, NY 10019. Term: until 1/7/2099. GP LLC. Authority filed with NY Dept. of State Jurisd. and date of org.: DE 1/3/07. NY State Purpose: any lawful activity. on 1/17/07. Office location: NY County. LLC office loc.: NY Cty. Sec. of State of NY designated Available Space: 2nd Floor – 15,352 rsf On site café Basement Level (Storage/Lunchroom)– 5,000 rsf formed in Delaware (DE) on 1/11/07. NY Secy. as agent of LLC upon whom process may be Bank w/ ATM Notice of Formation of 164-11 Jamaica of State designated as agent of LLC upon served. Sec. of State shall mail copy of Term: Through 2/28/2010 Full service restaurant Avenue LLC. Arts. of Org. filed with NY Dept. whom process against it may be served. NY process to principal business location of LLC: Parking: 4 per 1,000 rsf Health Club of State on 2/27/07. Office location: NY Secy. of State shall mail process to the principal 1345 Avenue of the Americas, NY, NY 10105. County. Secy. of State designated as agent of business address of the LLC: 106 Seventh Addr. of LLC in DE is c/o National Corporate Lease Rate: Negotiable Gas station/convenience store Ave., #2A, NY, NY 10011. DE address of LLC: within the park LLC upon whom process against it may be Research, Ltd., 615 South DuPont Hwy., Specifications: Large open plan, Great window line, served. Secy. of State shall mail process to: c/o The Corporation Trust Co., 1209 Orange Dover, DE 19901. Authorized office in DE Five offices, and two conference rooms c/o Wharton Realty, 20 E. 46th St., Ste. 1200, St., Wilmington, DE 19801. Cert. of Form. filed where Cert. of Form. is filed: DE Sec. of State, NY, NY 10017, principal business address of with DE Secy. of State, Townsend Bldg., Dover, Townsend Bldg., Dover, DE 19901. Purpose: Please contact Victor Hayghe, 718-794-5317 or [email protected]. the LLC. Purpose: any lawful activity. DE 19901. Purpose: any lawful activity. any lawful activity.

32 | Crain’s New York Business | April 16, 2007 nb16p32_33cls.qxp 4/12/07 1:04 PM Page 33

PUBLIC & LEGAL NOTICES LUXURY PROPERTIES

Notice of Formation of Kitchen Table Notice of Formation of Mommies On Demand, NOTICE OF REGISTRATION of Holtzman SOUTHAMPTON Associates, LLC, Art. of Org. filed Sec'y of LLC. Articles of Org. filed with NY Sec. of Helfman, LLP. Certificate filed with the NY State (SSNY) 11/21/03. Office location: NY State (“SSNY”) on 8/1/06. Office in New Department of State on 4/22/05. Office County. SSNY designated as agent of LLC York County. SSNY is designated agent for Location: NY County. SSNY designated as upon whom process against it may be service of process. SSNY shall mail process agent of LLP with whom process of service served. SSNY shall mail copy of process to principal business address: 440 West End may be served. SSNY shall mail copy of to c/o Gary I. Fields, Esq., 8 Haven Ave., Avenue, Suite 14C, NY, NY 10024. Purpose: process to Harriet Holtzman, 345 Eighth Ste. 209, Port Washington, NY 11050. Any lawful purpose. Avenue, #5F, New York, NY 10001. Principal Purpose: any lawful activities. Business Address: 350 Seventh Avenue, Notice of formation of CITY CHOW CAFÉ V, Suite 604, New York, NY 10001. Purpose: Notice of formation of China Solutions LLC. LLC a NYS LLC Formation filed with SSNY any lawful activities Art of Org filed with Secretary of State of NY on 10/31/00. Off. Loc.: New York Co. SSNY (SSNY) on 23 March 2005. NY office location: designated as agt. of LLC, upon whom Notice of Formation of O & M Partners, LLC, New York County. SSNY designated as agent process may be served. SSNY shall mail Art. of Org. filed Sec'y of State (SSNY) 1/5/05. upon whom process against LLC may be copy of process to: The LLC, 16 West 45th Office location: NY County. SSNY designated served. Address to which SSNY shall mail Street, New York, NY 10036. Purpose: Any as agent of LLC upon whom process against it process against LLC is: c/o Nestor Gounaris Lawful purposes. may be served. SSNY shall mail copy of process 169E 78 Street NY NY 10021. Purpose is to David Mandy, 26 East 93rd St., NY, NY 10128. any lawful activity. Notice of Formation Regatta New York Realty I, Purpose: any lawful activities. LLC art. of org. filed Secy. of State NY (SSNY) 10/24/06. Off. loc. in NY Co. SSNY designated Notice of Qualification of HedgeForum Icahn, Notice of Formation The Center for Cultural as agent of LLC upon whom process may be Competency and Professional Development, LLC. Authority filed with NY Dept. of State served. SSNY shall mail copy of process to: on 1/10/07. Office location: NY County. LLC LLC art. of org. filed Secy. of State NY (SSNY) 300 Rector Pl, Ste 3R, NY, NY 10280. 1/23/07. Off. loc. in NY Co. SSNY designated formed in Delaware (DE) on 1/3/07. NY Purpose: Any lawful purpose. Secy. of State designated as agent of LLC as agent of LLC upon whom process may be upon whom process against it may be served. SSNY shall mail copy of process to: served. NY Secy. of State shall mail process Notice of Qualification of PCA Real Estate 900 Riverside Dr, 6F, NY, NY 10032. Purpose: to: c/o Citigroup Alternative Investments Asset Management, LLC. Authority filed with Any lawful purpose. LLC, 731 Lexington Ave., 28th Fl., NY, NY NY Dept. of State on 3/20/07. Office location: 10022, principal business address of the NY County. LLC formed in Delaware (DE) on Notice of Qualification of RP Martin LLC. LLC. DE address of LLC: c/o National 2/5/07. NY Secy. of State designated as agent Authority filed with NY Dept. of State on Corporate Research, Ltd., 615 S. DuPont of LLC upon whom process against it may be 3/30/07. Office location: NY County. Principal Hwy., Dover, DE 19901. Arts. of Org. filed served. NY Secy. of State shall mail process business address: 44 Wall St., 21st Fl., NY, NY with DE Secy. of State, Div. of Corps., Federal to: One Market St., Spear Tower Suite 3600, 10005. LLC formed in Delaware (DE) on & Duke of York Sts., Dover, DE 19901. San Francisco, CA 94105, principal business 3/14/07. NY Secy. of State designated as agent Purpose: any lawful activity. address of the LLC. DE address of LLC: c/o of LLC upon whom process against it may be Corporation Service Co., 2711 Centerville Rd., served. NY Secy. of State shall mail process Ste. 400, Wilmington, DE 19808. Arts. of Org. to: c/o Thelen Reid Brown Raysman & Steiner NOTICE OF FORMATION OF LIMITED LIABILITY filed with DE Secy. of State, 401 Federal St., LLP, 875 3rd Ave., NY, NY 10022, Attn: COMPANY. NAME: BANNER AVENUE, LLC. Dover, DE 19901. Purpose: any lawful activity. Richard S. Green. DE address of LLC: c/o Articles of Organization were filed with the Corporation Service Co., 2711 Centerville Rd., Secretary of State of New York (SSNY) on Ste. 400, Wilmington, DE 19808. Arts. of Org. 09/01/05. The latest date of dissolution is Notice of Formation of Loft Brands L.L.C. Arts. of Org. filed with Secy. of State of NY (SSNY) filed with DE Secy. of State, 401 Federal St., 12/31/2099. Office location: New York County. Dover, DE 19901. Purpose: any lawful activity. SSNY has been designated as agent of the on 5/19/06. Office location: NY County. SSNY designated as agent of LLC upon whom LLC upon whom process against it may be MIAMI BEACH/FLORIDA served. SSNY shall mail a copy of process to process against it may be served. SSNY shall Notice of formation of Artware Editions, LLC. mail process to: Bruce J. Grossman, Esq., 301 Arts. of Org. filed with Secy. of State NY Advertise on the LLC, c/o The J Companies, 711 Third TRUMP OCEANFRONT CONDOS Avenue, New York, New York 10017. Market St., Lemoyne, PA 17043. Purpose: any (SSNY) 4/19/06. Office in NY County. SSNY OWN YOUR LUXURY CONDO TODAY! Purpose: For any lawful purpose. lawful activity. desig. agent of LLC upon whom process www.newyorkbusiness.com may be served. SSNY shall mail process to: TRUMP GRANDE & TRUMP TOWERS Notice of formation of OPM MANHATTAN The LLC, 327 W. 11th St., NY, NY 10014. Buy directly from the Developer & Save $$ NOTICE OF FORMATION OF The LLC a NYS LLC Formation filed with SSNY Purpose: any lawful activity. Furnished Condo Hotel units from $325k Call John Gallagher WonderFactory LLC. Articles of Organization on 12/23/05. Off. Loc.: New York Co. SSNY 1-4 Bedrm Residential Condos from $875k filed with the Secretary of State of New York designated as agt. of LLC, upon whom process Notice of Formation of KH Radiology Ask for details on our FLY-BUY Program @ 212-210-0189 (SSNY) on 02/24/2005. N.Y. Office Location: may be served. SSNY shall mail copy of process Call Exclusively Baronoff 305.213.3606 New York County. SSNY has been designated Holdings, L.P., Cert. of LP filed Sec'y of State to: The LLC, 99 John St., #2310, NY, NY 10038. (SSNY) 3/19/02. Office location: NY County. as agent of LLC upon process against it may Purpose: Any Lawful purposes. be served. The P.O. address to which the SSNY designated as agent of LP upon whom SSNY shall mail a copy of any process process against it may be served. SSNY shall Notice of Formation of Kenmare Square mail copy of process to Michael Abiri, M.D., www.newyorkbusiness.com against the LLC served upon him/her is C/O Associates, LLC; Arts of Org., filed with NY the LLC David K. Leitner Esq., Troutman c/o Mid-Kings Imaging, Inc., 1780 Broadway, Sec. of State (“SSNY”) 06/01/2004. Office in Ste. 1100, NY, NY 10019. Name/addr. of each Sanders LLP., 405 Lexington Avenue, New NY County; SSNY designated agent for service CHAUFFEURED TRANSPORTATION York, NY 10174. The Address of the LLC is gen. ptr. avail. at SSNY. Purpose: any lawful of process with copy mailed to Thomas J. activities. Latest date 12/31/2042. 28 West 25th Street, New York, NY. 10010. Malmud, Esq., c/o Pryor Cashman Sherman & Purpose of LLC: any lawful act or activity. DESTINATION? Flynn LLP, 410 Park Avenue, 10th Floor, New Notice of Formation of ROCKY MOUNT York, NY 10022, All lawful business purposes. Notice of Qualification of Rector 469 LLC. DEVELOPMENT LLC, domestic Limited Anytime. Anywhere. Liability Company (LLC). Articles of Authority filed with NY Dept. of State on Notice of Qualification of EOS Education, 10/30/06. Office location: NY County. LLC Organization filed with Secretary of State on Outcomes, Science LLC. Authority filed with 3/2/07. NY Office location: NEW YORK County. Business Meetings and Events, formed in Delaware (DE) on 10/17/06. Secy. NY Dept. of State on 3/1/07. Office location: NY of State designated as agent of LLC upon Secretary of State is designated as agent upon Road Shows, and 18-hour days; County. Principal business address: 437 whom process against the LLC may be whom process against it may be served. Madison Ave., NY, NY 10022. LLC formed in we know where you’re coming from Secy. of State shall mail process to the principal served. Secretary of State shall mail a copy Delaware (DE) on 12/4/03. NY Secy. of State of any process against the LLC served upon and we know how to get you there. business address of the LLC: c/o Williams designated as agent of LLC upon whom Real Estate Co. Inc., 380 Madison Ave., NY, him/her to THE LLC, 69 E. 130TH STREET, Anytime. Anywhere. process against it may be served. NY Secy. of 2ND FLR., NEW YORK, NY 10037. Purpose: NY 10017, Attn: General Counsel. DE address State shall mail process to: Corporation Service of LLC: c/o Capitol Corporate Services, Inc., To engage in any lawful act or activity. Co. (CSC), 80 State St., Albany, NY 12207. DE Commonwealth Worldwide provides 15 E. North St., Dover, DE 19901. Cert. of address of LLC: c/o CSC, 2711 Centerville Rd., Form. filed with DE Secy. of State, Div. of Wilmington, DE 19808. Arts. of Org. filed with premium chauffeured transportation Corps., Townsend Bldg., Dover, DE 19901. DE Secy. of State, Loockerman & Federal Sts., services for discriminating corporate Purpose: any lawful activity. Dover, DE 19901. Purpose: any lawful activity. Coming Up clients including senior executives, and private aviation passengers. Notice of Qualification of Armand de Brignac Notice of Qualification of AGBH Versailles, on the Calendar Holdings, LLC. Authority filed with Secy. of L.L.C. Authority filed with NY Dept. of State on State of N.Y. (SSNY) on 1/23/07. Office 3/8/07. Office location: NY County. Principal Celebrating Our 25th Year location: NY County. LLC formed in Delaware business address: c/o Angelo Gordon & Co., (DE) on 1/11/07. SSNY designated as agent L.P., 245 Park Ave., 26th Fl., NY, NY 10167. 1982-2007 of LLC upon whom process against it may LLC formed in Delaware (DE) on 2/22/07. NY April 23rd be served. SSNY shall mail process to: 480 Secy. of State designated as agent of LLC International Business Broome St., 2nd Fl., NY, NY 10013, Attn: upon whom process against it may be served. Brett Berish. DE address of LLC: 901 Market NY Secy. of State shall mail process to: CT St., Ste. 460, Wilmington, DE 19801, Attn: Corporation System, 111 8th Ave., NY, NY Hanover Corporate Services Ltd. Cert. of 10011, registered agent upon whom process Form. filed with DE Secy. of State, 401 Federal may be served. DE address of LLC: c/o The April 30th St., Ste. 4, Dover, DE 19901. Purpose: any Corporation Trust Co., 1209 Orange St., lawful activity. Wilmington, DE 19801. Arts. of Org. filed with The New York Film DE Secy. of State, 401 Federal St., Dover, DE Industry Notice of Formation of TMG Dobie Center 19901. Purpose: any lawful activity. LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 1/20/06. Office location: Notice of Formation: AYAT, LLC. Art. of Org. NY County. SSNY designated as agent of filed with Sec. of State of NY (SSNY) on 11/3/06. LLC upon whom process against it may be Office loc.: NY County. SSNY designated as May 7th served. SSNY shall mail process to: c/o The agent of LLC upon whom process against it The World’s #1 Chauffeured Transportation Company Modlin Group LLC, 130 W. 57th St., NY, NY may be served. SSNY shall mail process to: Meeting Planners Guide 10019, Attn: Avery Modlin. Purpose: any 1623 Third Ave., Suite 23-K, NY, NY 10128. lawful activity. Purpose: Any lawful activity. 866.770.1677 or 718.706.5500 • commonwealthlimo.com

April 16, 2007 | Crain’s New York Business | 33 CNYB 04-16-07 A 34 4/12/2007 8:07 PM Page 1

WEEK IN REVIEW

Trader facing ECONOMIC SPOTLIGHT more jail time former currency trader Michael Armstrong was slapped with a five-year prison term for running a Ponzi scheme that cost investors more than $700 million. Mr. Armstrong, who pleaded guilty last year, has been in jail since 2000 on a related contempt charge. Martha’s big haul martha stewart Living Omnimedia Inc. paid founder Martha Stewart $2.1 million in 2006.The company, which posted a loss of $17 million last year, has failed to turn an annual profit since 2002, when Ms. Stewart’s legal troubles over her ImClone Columbia’s $400 million windfall stock sale began. BILLIONAIRE Columbia University alumnus JOHN W. KLUGE (foreground) pledged $400 million to the school. The gift— Flurry of TV deals one of the largest donations ever given to a U.S. university— cbs corp. signed deals with 10 companies to distribute such TV will be earmarked for undergraduate and graduate financial shows as CSI and video Economy Watch aid. Mr. Kluge, 92, graduated from Columbia in 1937 and programming to Web portals, has been one of its staunchest supporters. He previously including Microsoft Corp.’s NYC’s unemployment rate stayed below 5% for a seventh month in February, MSN.com and Time Warner as the city kept adding jobs. The area’s monthly and annual inflation rates rose. donated $110 million for a program that provides four-year Inc.’s AOL.com.The companies JANUARY ’07 FEBRUARY ’07 COMPARISON scholarships for up to 60 students annually. will share ad revenue. 1 NYC jobless rate 4.9% 4.8% 4.5% ap images NYC employment change +18,000 +6,500 +24,5002 voted 63% to 37% to reject a NYC Transit 3 NY area inflation change +0.2% +0.6% +3.1% Monster gets resolution that would have given president 1-U.S. unemployment rate. 2-Change since December 2006. 3-Inflation rate for the latest new chief them a greater say in how top 12-month period. executives are paid. A similar the metropolitan Trans- monster worldwide inc. resolution at the Bank of New portation Authority named NYC Hotel Stats Broadway Stats replaced Chief Executive William York came closer to passage, Howard Roberts Jr., who was head Pastore with former Symbol receiving 47% of the vote. Activist of city bus operations more than Average daily room rates and Broadway recorded its fourth-highest Technologies CEO Sal Iannuzzi, investors are pushing the 20 years ago, president of New occupancy levels in New York City weekly gross in the week ended 4/8, a week after the jobs-site operator resolution at dozens of companies. York City Transit. Mr. Roberts recovered somewhat in February, data from The League of American cut its sales forecast. Mr. Iannuzzi succeeds acting President Millard according to data from PKF Theatres and Producers show. Fig- has headed Monster’s executive Seay, who oversaw the agency after Consulting. The year-earlier levels ures for the same week last season committee since October. Barnard president Lawrence Reuter resigned in were $218.75 and 76.6%. were 256,200 and $18.2 million. stepping down February. Consumer Reports barnard college president getting makeover Judith Shapiro announced that AT&T exec named she would step down at the end of Comverse CEO consumer reports named a new the 2007-08 academic year. Ms. editor and announced a redesign. Shapiro, 65, has been at the helm comverse technology inc. Kimberly of the Columbia University- appointed Andre Dahan president Kleman, the affiliated women’s college for 14 and CEO. Mr. Dahan, former deputy years. No successor was named. CEO of AT&T Wireless Mobile editorial Multimedia Services, succeeds director of the Student loan woes Jacob “Kobi” Alexander, who magazine’s resigned last year amid an options nonprofit cit group inc. placed three top probe and later fled to Namibia. publisher, executives at its Student Loan Consumers Xpress unit on leave a few days Capital IQ’s Weekly Deals Report Union, added after the companies were NYT investors the post of subpoenaed by New York state urged to protest TRANSACTION SIZE editor in chief.The job had been Attorney General Andrew COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE vacant since Margo Slade left the Cuomo, who is conducting a glass lewis & co. became the American Real Estate Partners $200.0 Portside Growth and Opportunity Fund, GCI publication, based in Yonkers, probe of the $85 billion student second proxy adviser to urge New Manhattan Highbridge Capital Management, Ramius Capital Group N.Y., in October. loan industry. York Times Co. share- Bioenvision Inc. $30.0 Not disclosed GCI Manhattan Viacom says Fox and Hearst holders to Xcitek, market data division $25.3 Interactive Data Corp. SB M&A withhold votes Manhattan Yahoo! in video pact for four of its Coda Octopus Group Inc. $13.3 Not disclosed GCI directors. Manhattan viacom inc. and Yahoo Inc. fox television studios and Glass Lewis Nature Technologies Inc. $2.8 Concentric Equity Partners, GCI signed a multiyear deal making Hearst Magazines signed an wants the

Pleasantville, N.Y. Ropart Partners, BEV Capital Yahoo the sole provider of agreement to create a series of company to bloomberg news Vistula Communications $2.5 Accredited investors GCI sponsored ads for Viacom’s 33 broadband and network split the chairmanship and Services Inc. broadband Web sites, including television programs based on publisher roles held by Arthur Manhattan MTV.com and Nickelodeon.com. popular Hearst magazine titles. Sulzberger Jr. (above) and give Selected deals announced during the week of April 1 for companies headquartered in metro New York. GCI: investment represents new money invested in a company for a minori- The development deal includes shareholders more control over ty stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing No say on pay two initial Webisode projects executive compensation. shares of a company without the participation of a financial buyer. patterned after two magazines: —from staff reports and

bekka lindström bekka morgan stanley shareholders CosmoGirl and Popular Mechanics. bloomberg news reports

34 | Crain’s New York Business | April 16, 2007 Project4 3/1/07 5:54 PM Page 1

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GREY WORLDWIDE CNYB 04-16-07 A 36 4/12/2007 6:49 PM Page 1

Coalition of top executives seeks a tax cut the next administration. companies will cash in pent-up cap- capital gains taxes. Congress will be rate capital gains tax may be at- Business group led Loews Corp. Chief Executive ital gains, and tax receipts will eager to pull in extra dollars to off- tempts at “positioning” for 2009 be- by James Tisch cites James Tisch, who heads the coali- climb. set the loss in revenue from any re- cause many lawmakers don’t want to tion, says that the group’s The argument should peal of the alternative minimum tax, rock the boat now,according to Tim benefits of a lower suggested rate cut—to sound familiar, because it Mr. Tisch predicts. McCormally, executive director of 15% for capital gains from is. It was used in 2003 If the AMT is repealed, more Tax Executives Institute. capital gains tax the current across-the- when Republicans called than $800 billion in tax revenue Even Internal Revenue Service board 35% rate for all cor- for a cut in the individual could be lost over the next decade,ac- Commissioner Mark Everson, BY NICHOLAS RUMMELL porate income—would capital gains tax. It cording to estimates from the Tax speaking about tax reform recently not be a tax-rate cut, but a worked, but some experts Policy Center. at a luncheon in Washington, said a push by a group of Fortune 500 tax-revenue increase. say that cut’s benefits major tax changes won’t be realized

executives to slash the tax rate on “This time [lawmak- bloomberg news haven’t materialized the After election until next winter at the earliest. corporate capital gains is a long shot, ers] won’t squawk,” be- James Tisch way supporters claimed congress is likely to forgo pursu- Mark Bloomfield, president of but some industry groups think the cause tax receipts will in- they would. ing any major tax reform until after the American Council for Capital proposal could become an impor- crease,Mr.Tisch says.The theory is Still, the iron might soon be hot the 2008 presidential election. Cur- Formation, who has pushed for a tant part of any tax reform efforts in that with a lower tax rate, more enough for a strike on corporate rent proposals to reduce the corpo- rate cut for 30 years, says his organ- MAJOR GIVING Corporate capital gains tax rate. 35% CURRENT 15% PROPOSED

AMOUNT COLLECTED 2003 $108.3 billion 2000 $258.7 billion

ization will propose comprehensive tax reform—including a reduction in the corporate capital gains tax— within the first 100 days of the next presidency. “If there’s anything that’s like a free lunch, it’s a capital gains tax re- duction,” Mr. Bloomfield says. One of the biggest traditional supporters of a corporate capital gains cut is the timber lobby. “They always have their finger in there,” says Bob McIntyre, director of Citi- zens for Tax Justice. He adds that timber companies—which have enormous landholdings subject to Three years. capital gains taxes, if sold—played a key role in the 1981 tax cut and oth- Three consecutive Outstanding Patient Experience awards er major initiatives for reducing the corporate capital gains tax. for Syosset Hospital, from J.D. Power and Associates. The timber lobby tried to insert tax breaks, including one on capital gains, into estate tax legislation in To be recognized by J.D. Power and Associates once is exciting. To do it again is remarkable. But to do it a third 2006, but the bill failed. year in a row is extraordinarily meaningful—because the award is based on comments made by our own patients Freeing up money about the services we provide. the united states is behind some European countries in cutting the “Inpatient Service Excellence.” That’s what the award says. To achieve this distinction in 2006, we exceeded the corporate capital gains tax, accord- national benchmark scores for creating a consistent, positive patient experience. In particular, patients appreciated our ing to research by Harvard Associ- speed and efficiency in administering treatment, our staff ’s open and clear communication, and our admission and ate Professor Mihir Desai. The discharge processes. No wonder more than 16,000 patients a year turn to us when they need surgery. And no wonder United Kingdom, Germany and the vast majority of our patients said they would return—that’s the greatest validation of all. France have made cuts to retain for- eign and domestic capital; about Syosset Hospital is the only hospital in New York to be recognized by J.D. Power and Associates three years 20% of corporate income is subject in a row. Here and now, we pledge to continue setting our community’s standard of care. to the tax, Mr. Desai found. Mr. Tisch, who plans to unveil the so-called America Gains initia- tive this month, says something To learn more about Syosset Hospital and its services, should be done to free up the “tril- call 516.496.6467 or visit northshorelij.com. lions of dollars” in capital that is locked up because of the tax, and to

HOSPITALS: NORTH SHORE • LONG ISLAND JEWISH • SCHNEIDER CHILDREN’S stem the flow of capital abroad. ZUCKER HILLSIDE • FRANKLIN • GLEN COVE • SYOSSET • PLAINVIEW Congress should try out the 15% SOUTHSIDE • HUNTINGTON • FOREST HILLS • STATEN ISLAND rate for five years, Mr.Tisch says.“If AFFILIATIONS: NASSAU UNIVERSITY MEDICAL CENTER • PENINSULA it doesn’t work out, I’d be the first to say it doesn’t work.” SM Setting New Standards In Healthcare Nicholas Rummell is a reporter with FinancialWeek, a Crain publication.

36 | Crain’s New York Business | April 16, 2007 CNYB 04-16-07 A 37 4/13/2007 4:23 PM Page 1

opposition,” Mr. D’Amato says. UP NEXT Brownfields, judges Quinn, chambers THE INSIDER WITH THE BUDGET FIGHT OVER, insiders say Gov. Eliot Spitzer (below) will lobby together soon move on to two other contentious issues. by Erik Engquist and Anne Michaud His office confirmed last week that overhauling the state’s brownfields city council speaker Christine program, intended to speed cleanup of polluted sites for redevelopment, is a Quinn is taking representatives top priority. It’s a key element of the governor’s pledge to revive the upstate from the main chamber of economy, particularly Buffalo and Syracuse, as well as Yonkers. commerce in each borough to In doing so he can expect widespread support. New York City Deputy Albany this week to lobby for Congestion pricing Mayor Daniel Doctoroff is also said to be advocating a faster process and an end to double taxation of clearer rules to promote the waterfront development and affordable housing catching on S corporations. Ms. Quinn has told chamber construction that are part of the Bloomberg administration’s 25-year plan for Michael members that one of her goals is for growth. Business groups are on board, too. “It’s one of the few things that ayor upstate and the city totally agree on,” says Kathryn Wylde, president of the Bloomberg’s lack of the council to be more business- friendly and cooperative with Partnership for New York City. enthusiasm for employers. Reform of the state’s Ms. Wylde says taking control of the program away from the state M Department of Environmental Conservation would help, as would insulating congestion pricing isn’t stopping unusual taxation of S corporations the concept from gaining traction is also a priority for the mayor. new developers from liability, which New Jersey has done. Insiders say the shift from DEC is likely. in political and business circles. It’s But not everyone agrees with the approach. The New York Public now a topic at meetings on city Controversial Interest Research Group sued New York in state Supreme Court last transportation planning and B’klyn judge lingers month, claiming that the brownfields program is too lax. bloomberg news greenhouse-gas reduction, and Mr. Spitzer is also expected to recommend legislation this month to create political and legal insiders are merit selection of New York’s 324 Supreme Court judges. The change would elected officials are openly entertaining the idea, which wasn’t eager for the state Commission on involve amending the state constitution and would have to be approved by a true a year ago. Judicial Conduct to remove vote of two consecutive Legislatures and the public. The earliest the question Supreme Court Judge Howard could appear on a statewide ballot is 2009. Last week, for example, who led a state probe of the mutual Ruditzky from the Brooklyn bench. Currently, the judges are nominated at a convention that is tightly Manhattan Borough President fund industry under then-Attorney They are worried that the seat will controlled by county political bosses. Out-of-favor judicial candidates can’t Scott Stringer took the case for General Eliot Spitzer. DASNY has a not open in time for the fall get on the ballot, and elections are mostly uncontested. A federal appeals studying road pricing to the $33.7 billion bond portfolio and is election, which may be the last one court has upheld a district court ruling that the system is chamber of commerce in Brooklyn, managing $5.7 billion in before a court challenge ends unconstitutional, but the U.S. Supreme Court is reviewing where there is resistance. Brooklyn construction projects. insider-driven judicial selection. the decision. Borough President Marty Several months ago, reports Mark Alcott, president of the New York State Bar Markowitz had been “hostile” to Novel recycler surfaced that payments were Association, says the lower court rulings and Mr. Spitzer’s congestion pricing but now says allegedly made to Democratic support make this the best chance reformers have he’s “intrigued” after meeting operatives to secure his judgeship. eyes the city had in 35 years to overhaul judicial selection. A Deputy Mayor Nicky Gavron of A law enforcement source says Mr. London, where it has been a an innovative, fast-growing Ruditzky had immunity when he nominating panel would send a list of qualified success. recycling business will debut in the testified before a grand jury last names to the governor’s office for the final state this summer in Syracuse and year, but no deal to keep his job. choice. The panel, appointed by the governor, aims to reach New York City in a The commission would not the chief judge and legislative leaders, could Spitzer postpones year or two. comment. Mr. Ruditzky is no include members of the public, Mr. Alcott says. I justice deadline RecycleBank co-founder and longer presiding over trials. ap images chief executive Ron Gonen, 32, an gov. eliot spitzer will choose the Upper West Side resident, says his next presiding justice of the First company could double the city’s Department from an enlarged pool recycling rate by paying residents to of candidates after unexpectedly recycle.The formula has worked extending the application deadline elsewhere, helping RecycleBank for the coveted post and other grow to 20 employees in three Spring is Here... judicial vacancies. years. The two-week extension of the Mr. Gonen wrote his plan for in the Heart of March 23 deadline has prompted the business as a first-year M.B.A. speculation that the governor was student at Columbia University Midtown Manhattan recruiting someone who hadn’t and later launched it in applied or that he was unhappy with Philadelphia with . the original group of applicants. The latter is unlikely, as the list included some big names.The New Mayor making York Law Journal says applicants a good enemy? include Chief Administrative Judge Jonathan Lippman, Appellate insiders say the United Division justices Stephen Crane and Federation of Teachers is an enemy Peter Tom, and First Department that Mayor Michael Bloomberg can justices Richard Andrias, Luis Gonzalez, afford to make. Angela Mazzarelli, James McGuire and The mayor picked a fight with David Saxe. the UFT last week by comparing The First Department appellate the union to the National Rifle division appointment is one of the Association, and he didn’t back down 530 newly renovated guest rooms and most important the governor the following day when asked about suites, 20,000 square feet of meeting space, makes. All of the appeals in the comparison at a press and a dedicated banquet staff Manhattan run through it, notably conference. He said both the UFT large commercial cases, and its top and NRA represent small groups post is seen as a stepping stone to with distorted views. the state’s high court. “As long as he’s taking on the UFT and not the teachers [themselves], he’s OK,” says a Dormitory agency source in the Bloomberg-for- exec is retiring president camp. Former Sen. Alfonse D’Amato took state dormitory authority on the UFT in his last re-election Executive Director Maryanne Gridley campaign, which he lost. But he will retire at the end of April after says Bloomberg is doing the right 49 West 32nd Street, New York, NY 10001 five years in the post. Among the thing. “If he runs for president, Tel (212) 277-2647 www.radisson.com/martinique front-runners to succeed her is saying he’s fighting for quality David Brown IV, a Wall Street lawyer education will outweigh any union

April 16, 2007 | Crain’s New York Business | 37 Project2 4/11/07 1:20 PM Page 1

Dr. Ruth Stark Dr. Theodore Raphan Dr. Maribel Vazquez Distinguished Professor, Chemistry Distinguished Professor, Computer and Associate Professor, Biomedical Engineering College of Staten Island & CUNY Graduate Center Information Science City College of New York/CUNY Director of the Institute for Macromolecular Assemblies Brooklyn College/CUNY NIH & NSF grants to study brain cancer infiltration Ph.D. University of California/San Diego Harvard Medical School/National Space Sc.D. Massachusetts Institute of Technology Biomedical Research Institute Grant Ph.D. City University of New York

Dr. Jill Bargonetti Dr. Gregory L. Matloff Associate Professor, Biological Sciences Assistant Professor, Physics Hunter College/CUNY New York City College of Technology/CUNY Presidential Early Career Award for Fellow, British Interplanetary Society Scientists and Engineers NASA consultant on advanced in-space Assn. for Women in Science Outstanding propulsion technology Woman Scientist Award Ph.D. New York University Ph.D. New York University

World-class talent. Award-winning scholars. CUNY is their classroom. CUNY is your University. Dr. Sheldon Weinbaum Dr. Godfrey Gumbs Distinguished Professor, Biomedical –Chancellor Matthew Goldstein Distinguished Professor, Physics and Mechanical Engineering Hunter College/CUNY City College of New York/CUNY Maria A. Chianta & Alice M. Stoll Professor of Physics Guggenheim Fellow in Molecular and Fellow: American Physical Society (APS), Cellular Biology, 2002 New York Academy of Sciences, UK Institute of Physics Elected: National Academy of Engineering, 2005 APS Edward A. Bouchet Award National Academy of Sciences, Institute of Ph.D. University of Toronto Medicine of the National Academies Ph.D. Harvard University The City University of New York WWW.CUNY.EDU/LOOKWHOISTEACHING CNYB 04-16-07 A 39 4/12/2007 8:26 PM Page 1

BUSINESS CORPORATE LADDER Warner Music whiz wearing two big-deal hats PAGE 41 buck ennis

GOTHAM GIGS Silent role SHARON PROCTOR, 52, leads a double life. By day, she works in consumer marketing at Time Warner Inc., but she moonlights as a nonspeaking extra—a supernumerary—for the Metropolitan Opera. Supers receive small honoraria. SUPER POWER Eleven years ago, Ms. Proctor was encouraged by a friend to audition as an extra in Aida. Her first response was, “I can’t sing!” When she learned that the role was nonspeaking, she auditioned and got the part. Ms. Proctor, who is 5-foot-10, was called back the next year and given additional duties as an understudy for certain tall supers. “It’s your dress size,” she jokes, “not your talent.” JUGGLING JOBS Each opera requires several rehearsals, usually during the day; Ms. Proctor uses vacation time to attend them. She participates in about seven shows a year. ALL DRESSED UP In Il Trova- BUPRENORPHINE is becoming the tore, Ms. Proctor wore a long, treatment of choice hooped dress and had to shuf- for addicts who work fle on stage to avoid a hoop in white-collar jobs. uprising. “The whole thing is not to be noticed,” she says. gettyimages —adrianne pasquarelli

EXPERT OPINIONS HOW DO I START Addiction’s magic pill A FLOWER BOX? determine whether you have Remedy helps recovering opiate users stay on the job a sunny or shady location. Depending on that, you can BY GALE SCOTT choose plants like petunias and miniature roses, which like housands of new yorkers addicted to opiates start every day by standing in line at a sun, or ivy and begonias, which prefer shade. If you want to go rehabilitation clinic, waiting for a paper cup of methadone—the drug that stops their craving. traditional, use red geraniums, For recovering addicts such as 27-year-old Steve S., who says he got hooked on opiates four then branch out from there. years ago, the morning routine is different. He puts on a dress shirt, knots his tie, takes a pink pill You can also try edible plants: and heads off to a high-profile political job in Manhattan. He says that his addiction, which at miniature tomatoes, sage or one point had him popping up to 25 OxyContin tablets a day, doesn’t interfere with his job. even beans.The earliest to plant is May. Flowers will last “I’m a clean-cut guy in a suit. No one’s going to suspect I’m in treatment,” says Steve S., who until the frost. out of fear of losing his job spoke only on condition that his full name not be used. lois carswell For Steve S., the difference is a drug called buprenorphine, a prescription remedy that cuts the Co-chair, Brooklyn Botanic craving for heroin and manufactured opiate-like painkillers such as OxyContin and Percocet. It Garden plant sale is becoming the treatment of choice among addicts who work in white-collar jobs. It’s difficult for addicts on methadone to conduct normal lives. See ADDICTION on Page 40 Drug statistics Tfor New York City 100,000 34,000 1,000 *Data on other opiate addicts not available. Source: NYC Department of Health and Mental Hygiene, 2005 HEROIN ADDICTS* METHADONE USERS BUPRENORPHINE USERS istockphoto

April 16, 2007 | Crain’s New York Business | 39 CNYB 04-16-07 A 40 4/12/2007 8:33 PM Page 1

BUSINESS LIVES Addiction’s magic remedy Continued from Page 39 treatment experts say that it is likely Buprenorphine is usually dis- Addicts must visit a clinic each to become more popular.Its profile is pensed by primary care doctors, day, and federal law requires that being raised by a current subway ad who take an eight-hour course on methadone be administered only campaign funded by its manufactur- the drug and must tell patients under the supervision of a caregiver. er, Reckitt Benckiser, and a smatter- where to get counseling. Most are Also,methadone is strong enough to ing of media reports about the drug. not addiction specialists, however. make users high, sometimes inter- Treatment doesn’t follow the fering with work. Buprenorphine, or Potential problems methadone model, in which pa- “bupe,”can be prescribed by a doctor some doctors are concerned about tients attend support group meet- WIDE NET: Buprenorphine apparently works for people from all walks of life. and taken at home once a day.People the drug.They are worried that long- ings and 12-step programs. who use it say it has few side effects. term use of buprenorphine could In his own work as a drug coun- “It’s a lifesaver,” says Steve S. cause liver damage,particularly since selor, Ernest Stewart, a 56-year-old befuddled.”He had trouble climbing Methadone maintenance works, Bronx resident and father of 11, has seawalls to rescue swans,for instance. but it ties people down,says Dr.Sal- seen patients on both treatments. “I’m not being dramatic when I say sitz. “I had a patient who needed to METHADONE VS. BUPE He is also a former addict who has it saved my life,”says Mr.Alexander, go on a business trip to L.A.and had used both. Mr. Stewart says that he who became addicted to Percocet af- to find a clinic there that opened at Methadone Buprenorphine tells his own clients he’s happy he ter a series of injuries,including ones 6 a.m. so he could get his dose be- Cost to patient 25 cents per day $8 to $15 per day* switched 18 months ago to bu- from a motorcycle crash. fore his meeting,” he says. “That prenorphine from methadone at his adds to anxiety and distress, two Dispensed In controlled settings By private physicians doctor’s suggestion. Painkillers easy to get things addicts don’t need.” in daily doses via monthly prescriptions “It keeps me level-headed,” says dr. edwin salsitz, a Beth Israel He prescribes six-month sup- Characteristics Strong opiate, Weak opiate, no Mr. Stewart, who spent 20 years as Medical Center physician who treats plies of buprenorphine. His pa- sometimes sold illegally street value a supervisor in the New York City addiction, has 30 patients taking tients, he says,“can travel and work, *Typically covered by insurance. Department of Parks & Recreation. buprenorphine. and the boss doesn’t know.” “With methadone, I couldn’t sleep “I treat Wall Streeters,hedge fund Typical of his patients is Kate R., and I flew off the handle; now I can types,”he says.“Painkillers are replac- a 47-year-old Manhattan woman “Getting addicted to painkillers is most addicts will need to take it for function.” He adds that he started ing cocaine as recreational drugs be- and an addict for 30 years.“I was ter- serious business. But I never woke the rest of their lives. In addition, using heroin at age 13. cause they are easy to get.” rified someone would find out,” she up in the gutter, never had to go to some experts are concerned that the Addiction crosses class lines, and Doctors say it’s common for pa- says. Now taking buprenorphine, rehab. No one at work knows I have treatment of addiction with bupe apparently works for people tients prescribed painkillers for an in- she has resumed a career in the arts. a drug problem.” buprenorphine, because it allows an from different walks of life. jury to leave half-full bottles in their “For me,” she says, “this was a gate- Available for the past three years, addict to avoid frequent contact with David Alexander, 57, a full-time medicine cabinets, where drug seek- way to a normal life.” buprenorphine has not been widely a social worker or doctor, doesn’t ad- bird rescuer who lives in Connecticut, ers may find them.It’s also easy to buy prescribed, although many drug- dress the root causes of addiction. says that methadone left him “feeling painkillers on the Internet. COMMENTS? [email protected]

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40 | Crain’s New York Business | April 16, 2007 CNYB 04-16-07 A 41 4/12/2007 8:31 PM Page 1

BUSINESS LIVES CORPORATE LADDER Chris Hicks Music middleman Warner exec straddles in Atlantic Records. Atlantic is looking to the low- PERSONNEL FILE publishing, recording key,T-shirt-clad executive to help it out of a slump.In the last announced COMPANY Warner Music Group roles to put hitmaking quarter, WMG’s net income TITLE Senior vice president of artists together dropped 74% from the year-earlier urban A&R at Atlantic Records; period, to $18 million, because of senior vice president of A&R fewer releases and weak CD sales. BY SAMANTHA MARSHALL and head of urban music Quick start at Warner/Chappell he only time Chris as the industry struggles to AGE 36 Hicks was in trouble as right itself, music publishing has RÉSUMÉ Vice president of urban a toddler was when he generally been a bright spot and a A&R at Warner/Chappell; got into his parents’col- consistent cash cow. His dual role founding partner of Noontime lection of Marvin Gaye, will give Mr. Hicks an edge in sign- Entertainment in Atlanta TJames Brown and Sam Cook ing groups to recording and pub- records. He would sneak them onto lishing contracts, and locking up PERSONALITY TYPE Introvert. “I the turntable, putting the precious more potential revenue. like to time to myself and my son.

1970s vinyl at risk from scratches The California native got off to a When I’m not working, I am defi- buck ennis and sticky messes. quick start, promoting parties and nitely enclosed.” “My mom just sent me a picture concerts while at Howard Universi- BIRTHPLACE Richmond, Calif. ducer Bryan-Michael Cox and hit is and who the next star will be.” from when I was 2, peering into one ty in Washington, D.C. The busi- Grammy-winning writer Johnta Staying plugged in to publishing of those old-school stereo cabinets ness was so lucrative that he dropped Austin—both Noontime discover- while he’s on the label side will en- with the big speakers,” Mr. Hicks out and moved to Atlanta. ing deals and flooding the charts ies. The two, along with Mr. Hicks, hance his opportunities to match says. “I guess it was an early sign.” By 1997, Mr. Hicks had estab- with their tunes. He’s also credited were involved in Mariah Carey’s artists with songwriters and produc- Today, the lifelong music fan gets lished boutique music publisher with spearheading the re-signing of and Mary J. Blige’s multiplatinum ers and shepherd them through the paid for his selective taste. This Noontime Entertainment and set it Dr. Dre and Timbaland, and nab- comeback albums. Outside of his record-making process, Mr. Hicks month, Warner Music Group took up with what he calls a studio “about bing the latter’s extensive catalog. roles at Warner, Mr. Hicks acts as says. The self-described broker sees the unprecedented step of appointing the size of an office cubicle.”In 2000, His skill at attracting and retaining one of Ms. Blige’s managers. his particular skill as being able to him to top positions at two key units: Noontime formed a joint venture talent won Publisher of the Year for determine how talent fits together senior vice president of urban artist with Warner/Chappell—a partner- Warner/Chappell at the 2006 BMI A great ear in ways that make money. and repertory at Atlantic Records and ship that has delivered a steady string Urban Music Awards. “chris hicks is an accomplished “You can give me all the fancy ti- head of urban music at publishing gi- of Billboard Hot 100 hits. Mr. Hicks has established him- executive with that rarest of quali- tles, but at the end of the day, that’s ant Warner/Chappell Music. In ad- Mr. Hicks was instrumental in self as the go-to guy for some of the ties in the music industry: a great what I do,” he says. dition, Mr. Hicks is forming his own signing hip-hop stars Yung Joc, T.I. business’s most gifted people, in- ear,” says Atlantic Chairman Craig recording imprint,Beatfactory,with- and Paul Wall to lucrative songwrit- cluding Grammy-nominated pro- Kallman. “He knows what the next COMMENTS? [email protected]

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April 16, 2007 | Crain’s New York Business | 41 CNYB 04-16-07 A 42 4/12/2007 12:55 PM Page 1

BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING FINANCE & INSURANCE joined as director and senior commodity True Partners Consulting: Gregg Amalgamated Bank: Thomas A. Cahalan, strategist. He was formerly associate HOT JOBS Dluginsky, 40, was promoted to 54, joined as chief operating officer. He chief economist at the U.S. Commodity managing director from senior manager. was senior vice president and chief ad- Futures Trading Commission. ministrative officer at North Fork Bank. ADVERTISING & COMMUNICATIONS Carlton Advisory Services: Constantino HIGH TECH & NEW MEDIA WANTED: CHIEF OPERATING OFFICER Draftfcb New York: Terry Martin, 40, Argimon, 48, joined as senior vice Tacoda: Daniel Jaye, 42, joined as joined as senior vice president and president. He had been a managing executive vice president. He was COMPANY Governors Island Preservation and Education Corp. director of business development. He director at Daimler-Chrysler Capital. formerly chairman and chief technology JOB DESCRIPTION Responsible for island operations, infrastructure J.P. Morgan Private Bank: was formerly senior vice president and Robert L. Zrike officer at Permissus Inc., which he planning, and development and construction management segment leader at Omnicom Group. Jr., 44, joined as managing director and founded. OgilvyAction: Timothy Reed, 41, joined as head of the New York team. He had Takkle Inc.: Frank Speiser, 31, joined as MOST IMPORTANT TASKS Stabilizing historic buildings while expanding senior vice president of global been a managing director at Citigroup chief technology officer. He had been renovation and new construction efforts communications. He was formerly a Private Bank. chief technology officer at Heavy.com. director of new business and client Laurus Capital Management: Ross [x + 1]: Jiri Muselik, 48, joined as vice CREDENTIALS NEEDED Minimum 10 years’ experience in public-sector services at Snap Marketing. Bartfield, 46, joined as senior vice president, engineering, a newly created development Titan Worldwide: Jamie Lowe, 31, was president of U.S. marketing. He was position. He was formerly director of RECRUITER promoted to senior vice president from formerly director, endowments and Web applications at Consumer Reports. Internal vice president and continues as general foundations, at Citigroup Alternative DOWNSIDE Making military-designed infrastructures useful for manager. Investments. HOSPITALITY & TOURISM development YOO: Sophie Conran, 41, joined as NYFIX Inc.: Scott Bloom, 40, joined as an Doubletree Guest Suites-Times Square: creative director. She was formerly executive vice president, corporate Michael Newman, 34, was named UPSIDE Working on long-term development plans designer of Sophie Conran products for development, and chief administrative director of sales and marketing. He had Governors Island Preservation and Education Corp. is looking to fill the Portmeirion. officer. He had been an executive vice been director of sales and marketing at president and general counsel at the Grand Hyatt New York. new post of COO in order to bring in extra expertise as it readies itself for ARCHITECTURE & DESIGN Dictaphone Corp. Millennium Hotels and Resorts: John the 2007 summer season. The 172-acre island, part of a National Perkins Eastman: David Koren, 36, Relegence Corp.: Larry Joyce, 49, joined Arnett, 53, was named president and Historic District, opened to tourists in 2003 and is in the midst of creat- joined as associate principal and director as senior vice president of products. He chief executive, the Americas. He had ing and expanding visitor programs. —KIRA BINDRIM of marketing. He was formerly had been executive director, North been president of the Kor Hotel Group. marketing director for the Northeast American product development, at Dow region at Gensler Architecture, Design Jones Newswires. LAW & Planning. Société Générale: Michael S. Haigh, 37, Allen & Overy: Andrew Rhys Davies, 32,

was promoted to partner from associate, marketing. She had been a vice president effective May 1. at RCA Music Group. Michael Gilligan, 37, was promoted to FinancialWeek: Nancy Adler, 48, joined as Yes, we have a one-track mind. partner from senior counsel, effective publisher for the Crain “ May 1. Communications Inc. title. She had David Lewis, 35, was promoted to been senior managing director for sales partner from associate, effective May 1. and sales strategy at Dow Jones & Co. We believe that Health Savings Charles Williams, 36, was promoted to Fitness magazine: Wendi Sanders Berger, partner from senior counsel, effective 40, was named publisher for the Accounts are so superior, we’re May 1. Meredith Corp. title. She had been John Williams, 40, was promoted to publisher of Child magazine. the one company that won’t partner from associate, effective May 1. Major League Gaming: Peter Cosco,40, Arent Fox: Mark A. Bloom, 38, joined as joined as executive vice president, global waste your time with any other partner. He had been a partner at sales and partnerships. He had been a McCarter & English. vice president at Discovery Kids Co. form of health insurance. James E. Frankel, 60, joined as partner. Todd Unger, 42, joined as executive vice ” He had been a partner at McCarter & president and general manager, digital. — Carmine Morano, President English. He had been a senior vice president at The PerfectHealth Insurance Company Andrew Ross, 41, joined as partner. He Time4Media. had been a partner at McCarter & John Lane, 38, joined as senior vice English. president, global sales and partnerships. An HSA from The PerfectHealth Insurance Company is Eugene R. Scheiman, 63, joined as He had been a director at Soccer United a combination of a Health Savings Account and a High partner. He had been a partner at Marketing. McCarter & English. Sundance Channel: Nomi Ernst Leidner, Deductible Health Insurance Plan (HDHP).It not only Dewey Ballantine: H. Patrick de 34, joined as director of development. lowers and controls an employer’s cost for benefits… Carbuccia, 37, joined as partner. He had She was formerly a supervising producer been a partner at Reed Smith. at Style Network. but also offers employees far more benefits than ever Alexander G. Fraser, 47, joined as before. partner. He had been counsel at Reed REAL ESTATE Smith. Brown Harris Stevens: Daniela V.Rivoir, At PerfectHealth, we understand Health Savings Fried Frank Harris Shriver & Jacobson: 44, was promoted to senior vice Accounts like no-one else.After all, we’re the Richard G. Leland, 58, joined as partner. president and managing director from He had been a partner at Kramer Levin vice president. pioneers in this field.If you’re an employer, we can Naftalis & Frankel. GVA Williams: Stephen Chasanoff,48, show you how to save significant sums of money Fulbright & Jaworski: William Stelwagon, joined as senior managing director. He while also cutting your taxes.In addition, we’re ready 40, joined as senior counsel. He was was formerly a managing partner at formerly an associate at Willkie Farr & Chasanoff Properties. to explain HSAs to your employees.Even show them Gallagher. Dolores O’Connor Minardi, 50, joined as how to set up the interest-bearing, tax-free savings Goulston & Storrs: Mitchell N. Baron, 59, senior managing director. She had been joined as partner. He had been a partner a principal at Sutton & Edwards account. at Morgan Lewis & Bockius. Commercial Real Estate. Katten Muchin Rosenman: Julie Pechersky, To us, the advantages of our HSAs over traditional 34, was promoted to partner from TELECOMMUNICATIONS health insurance are very clear. associate. SpeechCycle Inc.: Steve Chirokas,47,was Susan Lee Saslow, 39, was promoted to appointed vice president of marketing. How many other health insurance companies can partner from associate. He was formerly director of product and make that statement? Loeb & Loeb: Ira Schreger, 57, joined as partner marketing at Convergys Corp. partner. He had been a partner at —adrianne pasquarelli Sonnenschein Nath & Rosenthal. Morrison & Foerster: Margaret A. Pierri, www.perfectny.com EXECUTIVE PROMOTIONS 51, joined as senior of counsel. She was (866) HSA-9447 formerly a partner at Ropes & Gray. Crain’s lists the promotion and hiring of New York Sonnenschein Nath & Rosenthal: Hillary area senior executives on a space-available basis, H. Hughes, 35, was promoted to partner with priority given to positions in New York City. from associate. The fastest way to get an announcement into Justin N. Kattan, 31, was promoted to Crain’s is to submit details online by filling out the partner from associate. form at www.NewYorkBusiness.com/submit. Making New Yorkers Healthy, Wealthy and Wise. The Executive Moves column is also available MEDIA & ENTERTAINMENT online. BMG Label Group: Donna Clower, 36, was Crain’s cannot confirm receipt of listings or say named senior vice president, strategic when they will appear.

42 | Crain’s New York Business | April 16, 2007 CNYB 04-16-07 A 43 4/12/2007 8:28 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape battered, fried anchovies; similarly structed on three riffs, all adorned prepared cubes of Haloumi cheese; with almond foam. Sesame ice house-made sausages spiked with cream in a sesame paste is my fa- tzatziki; and cracked olives. vorite, but many are taken with the Beyond the skordalia soup, appe- goat cheesecake. tizers of great merit include egg The wait staffers are highly pro- noodles topped with braised rabbit, fessional, have a sense of humor and snails, black truffles and Manouri know their way around a wine list cheese, and seared red mullet served with vigorous markups. Prices on with a lentil salad made with lountza more than a few bottles weigh in at bacon. This lean bacon, made from four times retail. smoked pork loin, works like a charm with the mild fish. Grilled COMMENTS? [email protected] octopus, done with orange purée, olives, garlic and chicory, proves chewier than ideal. Four patrons argue amiably and at length over whose main course is best, which speaks well for all of the choices. Spicy shellfish stew spooned over orzo is perfumed with saffron. Grilled swordfish stars with the Cypriot sausage seftalia, baby octo- ERNEST KLEIN pus—tender here—and cracked co- NOT MOM’S BEET SOUP: riander vinaigrette. & CO. Chef Michael Psilakis A strong vote—mine—goes to tweaks ingredients the combination plate of lamb chop and presentations to and loin with a crock of moussaka on  FINE FOODS  satisfying effect. the side, Jerusalem artichoke purée  Same Day Delivery

buck ennis and garlic. Roast chicken is an excel- lent, moist bird served with fennel  Phone Orders over lemon purée. Steak lovers will relish bone mar-  Corporate Accounts row htipiti, a mash of marrow, feta Reinterpreting Greek cheese and red pepper garnishing  Catered Luncheons roasted aged sirloin.The spinach pie Located at: Anthos translates tartare in the center of a white bowl concept and superb taste. spanakopita and fried potatoes round Sixth Ave. and 55th St. is inundated with an intense pota- This labor-intensive New Greek out the presentation. classics while staying to-garlic potage, accompanied by cooking is not inexpensive, and ap- Flavors are clear, full and felici- 212.245.7720 crisp, finger-size cod fritters. I petizers are $15 to $20. But before tous throughout the Anthos menu. A FULL SERVICE SUPERMARKET true to flavors; some could order this item for every the first course, guests are served not Things get more fanciful at dessert hefty wine markups course and marvel each time at its one but four miniature meze: lightly ($9 to $12), where baklava is decon-

wo long islanders are joined in an ambitious effort to raise Greek cui- sine to the same level of respect enjoyed by those Tof France, Spain and Italy. And restauranteurs. Michael Psilakis and Donatella Arpaia may just pull it off. lease your future. A scorecard has been needed lately to keep up with this dynamic duo. Chef Psilakis’ stops have in- cluded Onera and Dona, while Ms. Arpaia’s résumé boasts Ama, Bellini and Davidburke & Donatella. ANTHOS Anthos, directly across West 36 W. 52nd St. 52nd Street from the ‘21’ Club, oc- (between Fifth and Sixth avenues) cupies the home of brother Dino (212) 582-6900 Arpaia’s former Acqua Pazza. De- ### signer Matthew Sudock has soft- SEEKING PROPOSALS FOR... ened the original design with deli- CUISINE Haute Hellenic The New York City Economic Development Corporation is seeking cate pinks and chocolate brown, WINES 215 choices, 15 by the proposals to lease a restaurant space with accompanying storage at balancing feminine and masculine glass elements. Art featuring cherry blos- the Brooklyn Army Terminal located at 140 58th Street, Brooklyn. DRESS No code soms—anthos means “blossom” or BAT is a 97-acre campus with two buildings, containing an aggregate of “rebirth”—is reflected in the mir- NOISE LEVEL Lively approximately 3.1 million square feet of built out industrial and back rored rear wall. A curving staircase PRICE RANGE $28-$46 leads to a 20-seat private room on office space. the second floor. WINE MARKUP 210%-310% The flowering of the chef ’s cre- CREDIT CARDS All major Responses are due no later than 3:00 p.m., Friday, June 29, 2007. Submission ative drive is exciting. Basing his guidelines and requirements are outlined in the RFP and available to download RESERVATIONS dishes on traditional Greek ingredi- Strongly www.nycedc.com/RFP recommended at , or for pick-up at NYCEDC, 110 William Street, 6th Floor, ents, Mr. Psilakis reimagines the New York, NY, Monday - Friday, 9:30 a.m. to 4:30 p.m. classics in surprising and delicious HOURS Lunch, Mon.-Fri., noon- ways.You know at all times that you 2:45 p.m.; Dinner, Mon.-Thurs., are eating Greek food, but it’s ele- 5-10:30 p.m., Fri.- Sat., 5-11 p.m. vated to an ethereal plain. #### As a forever fan of the fiercely = Outstanding ###= Excellent garlicky potato dip skordalia,I am ##= Very good blown away by the soup that An- #= Good thos fashions from the same basics. REQUEST FOR PROPOSALS A deep-purple mound of beet

April 16, 2007 | Crain’s New York Business | 43 Project20 4/4/07 4:48 PM Page 1

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