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CRAINSNEW YORK BUSINESS Sitt’s empty storefronts P. 9 | The List: Top private school endowments P. 12 | Garment District braces for alterations P. 14 NEW YORK BUSINESS® MARCH 20 - 26, 2017 | PRICE $3.00 HOT TICKETS With millions in uncollected nes every year, the city is cracking down on parking cheats PAGE 16 VOL. XXXIII, NO. 12 WWW.CRAINSNEWYORK.COM NEWSPAPER P001_CN_20170320.indd 1 3/17/2017 8:00:52 PM “Massive amounts of highly sensitive client data traveling online, 24 hours a day. And I sleep like a baby at night.” David Wilner / COO FRONTEO USA, Inc. Client since 2012 Meet Spectrum Enterprise. Our thing? Delivering the right data, voice, video and cloud solutions via our nationwide fiber-based network. And all the support you need to succeed. With our superior network and IT infrastructure, you’re free to do your thing. Visit enterprise.spectrum.com/hello or call 866-667-3508 ©2017 Charter Communications. All Rights Reserved. Not all products, pricing and services are available in all areas. Actual speeds may vary. Restrictions may apply. Subject to change without notice. All trademarks remain property of their respective owners. ent-FEB17-Brand-10-8x14-5-CrainsNYBiz-8666673508 REV.indd 1 2/8/17 11:06 AM CNYB FP.indd 1 2/21/2017 12:02:14 PM MARCH 20 - 26, 2017 CRAINSNEW YORK BUSINESS FROM THE NEWSROOM | JEREMY SMERD | EDITOR IN THIS ISSUE What the judges said 4 AGENDA 5 IN CASE YOU MISSED IT NEWS THESE DAYS is a commodity. Everyone seems to have 6 ASKED & ANSWERED it (even if they are simply regurgitating other people’s re- POLITICS porting). Crain’s New York Business, however, is different. 7 Digital Most of the stories we write cannot be found anywhere 8 WHO OWNS THE BLOCK startups are what heals else. That’s what makes us indispensable for anyone who 9 REAL ESTATE the city’s economy owns, manages, invests in or works for a New York company. 10 HEALTH CARE If you don’t believe me, just ask the judges at the Society 11 VIEWPOINTS of American Business Editors and Writers. Last week SABEW announced that Crain’s won its top 12 THE LIST journalism award for publications—print or online, daily FEATURES or weekly—with a staff of 50 or fewer and was one of only 14 READY TO WHERE? six news organizations in the country to receive four or These are stories 16 METER CHEATERS more honors. That puts our newsroom of 18 journalists “I haven’t read in league with Bloomberg News publications, Fortune, The anywhere else, and Wall Street Journal, the Associated Press and the Milwau- kee Journal Sentinel. I thought they did I hope you agree with the judges who awarded us an outstanding job SABEW’s General Excellence honors: “The quality, range and impact exhibited by Crain’s New York made it the un- rivaled winner in this category.” As one judge put it, “These P. 20 are stories I haven’t read anywhere else, and I thought they did an outstanding job.”’ Anthony Taccetta Crain’s also received three honorable mentions. Senior reporter Aaron Elstein’s scoop revealed how Donald Trump received the STAR tax break reserved for 20 GOTHAM GIGS households making $500,000 or less. “Smart reporting resulted in Crain’s New York 21 SNAPS Business breaking news on a topic that other news outlets were chasing,” the judges 22 FOR THE RECORD wrote. “The coverage advanced the story of how billionaire Donald Trump got a tax 23 PHOTO FINISH break intended for the middle class—and resulted in a piece that stands out for its sharp but fair writing, and its engaged and approachable storytelling.” CORRECTIONS Elstein and web producer Peter D’Amato shared honors for explanatory report- Clarence Norman Jr. acts as a consultant to the Crown ing on scaffolds, kosher restaurants and a potentially lifesaving crane that is banned Heights Local Development Corp. and will not be involved in a development with BFC Partners. “A in New York. And contributor Jeff Koyen wrote “In search of the hot dog million- curious partnership,” published March 13, misat- aire,” a story the judges said “shed light on an industry whose vendors seem to be on tributed these facts. every street corner in New York, but whose business model was not widely known.” I share this because I am proud of our accomplishments and because we as a news organization owe a debt of gratitude to our readers. We are only as smart as our sources, and many of you are the ones who give us the insight we need to expertly report on issues of importance to the city’s economy. And, of course, your subscription—an investment that should pay dividends—helps us keep the lights on and our journalists busy. Thank you. ON THE COVER PHOTO: BUCK ENNIS CONFERENCE CALLOUT MAY 11 DIGITAL DISPATCHES SARAH KAUSS THE SECRET Go to CrainsNewYork.com TO GROWING FAST READ Dr. Norbert Sander, Join Crain’s and the founders of some who in 1974 became of New York’s fastest-growing companies, the first and only New> such as Sarah Kauss of S’well, Yorker to win the New to discuss how to create conditions York City Marathon, for rapid growth while maintaining died March 17. The quality and retaining staff. founder and CEO of The Armory Foundation in Washington Heights NEW YORK ATHLETIC CLUB was 74. [email protected] ■ The owner of a Midtown apartment build- ing on West 41st Street that once operated as an illegal hotel agreed to settle millions Vol. XXXIII, No. 12, March 20, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for of dollars’ worth of outstanding violations double issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 18, by Crain Communications Inc., 685 Third for $375,000. Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. ■ The feud between ex-lovers about who For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. should control TransPerfect could be over (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. soon. The mother of owner Phil Shawe has promised to vote her 1% stake to give Liz Elting a majority hold of the translation firm. BUCK ENNIS MARCH 20, 2017 | CRAIN’S NEW YORK BUSINESS | 3 P003_CN_20170320.indd 3 3/17/2017 7:46:38 PM WHAT’S NEW MARCH 20, 2017 AGENDAIf the mayor fears Trump’s cuts, why won’t he prepare for them? ayor Bill de Blasio’s voice was practically trembling at a news conference he called last week to assail the fund- ing cuts New York City is facing under President Don- ald Trump’s spending plan. “It’s extraordinary how many SHORTSIGHTED? Mnegative things have been packed into one budget,” the mayor said, enu- De Blasio has merating the reductions that police, education, housing and other services announced no contingency plans would endure. “New York stands to lose so much.” should proposed federal cuts come Whether Congress will approve a budget that so drastically shifts to fruition. spending to the military from just about everywhere else is an open ques- tion. But de Blasio, by calling the media briefing and urging New Yorkers to rise up in opposition, indicated he is taking the plan seriously. If that is count is projected to reach an all-time high by 2021. Bloomberg’s annual true, he should also prepare for its consequences. ritual of having agency heads find savings of 2% to 3% (on the theory that But he won’t. It is business as usual at the mayor’s budget office, which some positions outlive their usefulness and that practically any operation is making no special effort to create contingency plans or set aside addi- can be more efficient) ended when de Blasio took office in 2014. After tional reserves to offset cuts from Washington in the federal fiscal year objections from budget hawks, he did resume the agency cuts, but the last that begins Oct. 1. “I don’t do hypotheticals,” de Blasio said when asked three rounds have been in the 1% range. how he would cope if the cuts materialize. “We are going to fight.” The mayor’s budget director, Dean Fuleihan, was asked at an event There’s no harm in fighting. Indeed, the last week how the city was preparing for the city should fight for every last dollar it has Getting ready for hypotheticals, as large federal cuts about to be proposed. “Our been getting from Washington—which answer,” he said, “is ‘We cannot accept this.’ already is far less than we pay in taxes. But Bloomberg did before the recession, … Once the public understands [the impact], protesting doesn’t pay any bills. is part of de Blasio’s job they will inform our elected officials, who Getting ready for hypotheticals, as will make the right decisions. That’s not a Mayor Michael Bloomberg did by socking Pollyannish view. I have great faith in the away billions of tax dollars during the mid-2000s boom, is part of a may- American people.” That was Hillary Clinton’s campaign strategy. or’s job. Bloomberg’s savings softened the blow when the recession hit. Deputy City Comptroller Preston Niblack, seated beside the budget De Blasio enjoyed a surge in tax revenues as well and began replenishing director, took a more responsible view.
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