THE HIGH COST of KOSHER Inside the Often Opaque, Always Complex and Suddenly Growing Business of Making Sure Kosher Restaurants Stay That Way by AARON ELSTEIN PAGE 14

CRAINS

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® MARCH 7-13, 2016 | PRICE $3.00 NEW YORK BUSINESS THE HIGH COST OF KOSHER Inside the often opaque, always complex and suddenly growing business of making sure kosher restaurants stay that way By AARON ELSTEIN PAGE 14

VOL. XXXII, NO. 10 WWW.CRAINSNEWYORK.COM THE HEALTH DON’T HAVE THE LIST

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MARCHCRAINS 7-13, 2016

FROM THE NEWSROOM | JEREMY SMERD Obamacare’s unlikely ally IN THIS ISSUE 4 AGENDA

KAREN IGNAGNI, 6 IN CASE YOU MISSED IT the president and chief executive of Gearing up for EmblemHealth, stopped by our newsroom last week, part 7 HEALTH CARE a vote on the mayor’s of an informal listening tour that she has embarked on 8 WHO OWNS THE BLOCK affordable- housing plan since taking the reins of the health insurer six months ago. 9 REAL ESTATE I was interested in meeting Ignagni because I had 10 INSTANT EXPERT written about her when I was a health care reporter and 11 she was helping to shape Obamacare as the head of VIEWPOINTS America’s Health Insurance Plans, the industry’s 12 THE LIST lobbying group. Having FEATURES represented companies that many Americans loathe, Oh, it was legislators 14 COVER STORY Ignagni exhibits the kind of discipline that helps her avoid controversy. “Oh, it was legislators in Congress “in Congress who 23 GOTHAM GIGS who shaped health reform,” she demurred. shaped health 24 EXECUTIVE MOVES You might remember that insurers embraced health reform,” she demurred 25 SNAPS reform rather than fight it. This was smart politics, and 26 FOR THE RECORD Ignagni deserves her share of the credit. Rising costs over a 27 PHOTO FINISH generation had begun to hollow out the number of small businesses that could afford to offer employees health coverage, to say nothing of the ability of individuals to buy it. Insurers’ business was shrinking. Health reform, meanwhile, offered the possibility of an instant market. Advocates wanted to prohibit insurers from denying coverage based on pre- existing conditions. To agree to this, insurers demanded two things: a requirement that all individuals buy insurance and subsidies to help them do so. “You can’t have one without the other,” she said. “If you have guaranteed issue, you need people to participate.” I asked whether the rhetoric among Republican presidential candidates worried her. She responded with an understatement: “I think a number of folks on the Republican side have expressed concerns.” P. 23 Republicans call Obamacare a disaster, despite the fact that 20 million Victor Hogue Americans are newly insured. They want to repeal it, but show a willful disdain of health economics. Donald Trump says he’s in favor of guaranteed issue, but, like the others, is against any requirement that individuals buy insurance. What Republicans won’t admit is that Obamacare is already baked into every hospital and health insurers’ business through programs intended to improve health care quality and reduce costs. Perhaps this is why Ignagni is unruffled by the GOP’s rhetoric. She was a proselytizer for health policy, and now she is implementing it. Emblem’s focus is on coordinating care between doctors and then giving them a cut of the savings from avoiding unnecessary care. “I have a ON THE COVER different vantage point now,” she said. “An under-the-hood vantage point.” PHOTO: BUCK ENNIS

CONFERENCE CALLOUT MARCH 22 DIGITAL DISPATCHES CRAIN’S BUSINESS OF STARTUPS Go to CrainsNewYork.com LEARN HOW to get startups off the READ Oprah Winfrey’s investment in ground and grow them. Panelists Weight Watchers International landed the are Yext CEO Howard Lerman, company $17.5 million worth of Story CEO Rachel Shechtman, media exposure. Cornell Tech’s Adam Schwartz and ■ Small Business Commissioner Market frenzy leaves > Gregg Bishop (pictured) Wall Street steakhouses empty ■ Co-working-space provider JOHN JAY COLLEGE OF WeWork plans to launch a CRIMINAL JUSTICE global venture to lease offices and living 8:30 a.m. to 10 a.m. spaces to other companies [email protected] ■ Richard Jennings, founder of Goldman Sachs’ mortgage-finance group, dies Vol. XXXII, No. 10, March 7, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., LISTEN to a behind-the-scenes discussion New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address about kosher restaurants and other stories changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. CrainsNewYork.com/podcast For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT)

MARCH 7, 2016 | CRAIN’S NEW YORK BUSINESS | 3 20160307-NEWS--0004-NAT-CCI-CN_-- 3/4/2016 7:27 PM Page 1

AGENDAWHAT’S NEW MARCH 7, 2016 Solution to the city’s old call-box problem is right in front of us

arly in his mayoralty, Rudy Giuliani learned that the curb- side call boxes that pedestrians once used to report police and fire emergencies were doing more harm than good. The WI-FI KIOSKS old call boxes were generating lots of false alarms that wast- like this one would be a Eed resources and sent first responders on pointless missions. huge upgrade Giuliani did the logical thing: He announced that the call boxes, with from the city’s old police and their aging pedestals and deteriorating wiring, would be removed. fire call boxes. A small but vocal minority of New Yorkers went bananas. They rose up in protest, insisting that the boxes were essential lifesaving devices would have to offer New Yorkers something better in their place. and an iconic feature of the city’s streetscape. Politicians in the outer Fortunately, it can. The de Blasio administration is in the process of boroughs kowtowed to residents’ irrational fear that removing the replacing its virtually obsolete pay phones with 7,500 free Wi-Fi hot rarely used, graffiti-strewn call boxes would put their lives at risk. The spots. Anyone will be able to use the new kiosks, called Links, to surf mayor was chastened and bewildered by the public’s reaction. the Web on a provided tablet or their own smartphones, make free Ultimately, opponents persuaded a judge to keep the boxes in place. It domestic phone calls, charge their devices and—yes—call 911. Not only was a classic lesson in small-minded will the project cost taxpayers nothing, city politics. Decaying police and fire call boxes but thanks to the advertising space that Two decades later, the call boxes cost taxpayers $6 million a year and the city’s private partner will sell, the city remain, in worse shape and more will reap more than $500 million over 12 unnecessary than ever. Virtually deliver little besides false alarms. But years. every New Yorker over the age of 12 two bids to remove them have failed Previously, the Bloomberg adminis- has a cellphone, and the call boxes are tration cut a deal with the private sector no longer a part of the public con- to replace the city’s newsstands and bus sciousness. It would not even occur to most people to seek one out in shelters with attractive, modern structures. That agreement is bringing case of an emergency. The 15,000 boxes cost taxpayers more than $6 $1 billion into city coffers, again thanks to ad space. million a year, and 85% of calls from them are false alarms. These two successes should inspire City Hall to seek a similar solution But we cannot rely on common sense to prevail. Ripping out the call for the decaying police and fire boxes. They are relics from a bygone era, boxes and leaving nothing in their place would risk the same hysterical and the false alarms they produce cost money and divert first responders reaction that defeated the plan in 1996 and again in 2011, when a deaf- from real emergencies. Let’s replace them with something useful that not rights group stopped the Bloomberg administration’s attempt. The city only saves the city money but generates revenue as well. – THE EDITORS

FINE PRINT The city’s manufacturing sector got a burst of good news in last week’s revised jobs figures. Updated data for 2015 show the number of factory jobs increased by 1,600, to 78,000, meaning the sector has enjoyed two years of modest gains. Initial tallies had the city losing manufacturing jobs last year.

BY GERALD SCHIFMAN STATS 25 WORDS OR LESS LUXURY LAG THE RESIDENTIAL real estate market in Manhattan We are all immi- remained strong in 2015, but new data show that CITY AND THE “grants and we are the prices of luxury condos are beginning to ebb. Average price increase of Manhattan proud of it. And % homes since June, a continued steady unless they are +3.4 rise Drop in Manhattan luxury home Native Americans, % prices from June through Decem- I don’t know what -0.3 ber; prices fell slightly each month they’re talking Rise in value of the most-expensive 5% % of residential properties in the city last about +2.4 year, down from +18.8% in 2014

—Gov. Andrew Cuomo, at a rally for New York’s spot in a worldwide ranking Hillary Clinton, responding to Donald of the fastest-growing luxury residential Trump and his supporters 39 markets, down from No. 1 in 2014

BUCK ENNIS, BLOOMBERG ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY SOURCES: Streeteasy, Knight Frank

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AGENDA ICYMI CRAINS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan assistant to the publisher Alexis Sinclair, 212.210.0701 EDITORIAL Minimum wage hike could editor Jeremy Smerd assistant managing editors Erik Engquist, bankrupt home care agencies Peter S. Green web editor Amanda Fung copy desk chief Steve Noveck OV. ANDREW CUOMO art director Carolyn McClain ’s plan to gradually raise New photographer Buck Ennis York’s minimum wage could push some home senior reporters Joe Anuta, Aaron Elstein, Matthew Flamm, Daniel Geiger health care agencies into bankruptcy, the reporters Rosa Goldensohn, G Jonathan LaMantia, Caroline Lewis providers say. The increase, they argue, would under- data reporter Gerald Schifman mine efforts to reduce medical costs for the elderly and web producer Peter D’Amato columnist Greg David disabled by keeping them in their own apartments and contributing editors Tom Acitelli, Theresa Agovino, Barbara Benson, out of nursing homes. Erik Ipsen, Suzanne McGee, Judith Messina, Cara S. Trager Home health aides typically earn about $10 an hour in ADVERTISING New York City, and are among the workers who would www.crainsnewyork.com/advertise advertising director Irene Bar-Am benefit most from a $15 minimum wage. [email protected] or 212.210.0133 But agencies have been struggling for years with senior account managers Zita Doktor, Jill Bottomley Kunkes, Rob Pierce, unfunded wage mandates and reduced reimbursement Stuart Smilowitz rates from Medicaid and Medicare. About 70% of home account managers Jake Musiker senior marketing coordinator health agencies reported operating losses for 2013 in a survey by the Home Care Association of New York State. LeAnn Richardson sales/events coordinator Ashlee Schuppius The industry group warned that the minimum-wage hike would result in bankruptcies and reduced 212.210.0282 [email protected] services if the state budget doesn’t cover the higher labor costs. ONLINE general manager Rosemary Maggiore The group estimated that providers would face $1.1 billion in increased costs in the first two years, 212.210.0237 and $2.19 billion once the minimum wage reaches $15 statewide, in 2021. Health care union 1199 SEIU [email protected] CUSTOM CONTENT said trade groups’ cost estimates are overstated because they account for the increased wages of super- director of custom content Patty Oppenheimer 212.210.0711 visors as well as the lowest-paid workers. [email protected] The Cuomo administration insists it’s premature to talk about reimbursing providers for a $15 min- EVENTS www.crainsnewyork.com/events imum wage before one is even enacted. But home care providers are still waiting for a 34-cents- director of conferences & events Courtney Williams, 212.210.0257 an-hour boost in funds promised to cover the industry’s last wage mandate, which went into effect [email protected] — CAROLINE LEWIS manager of conferences & events in October. Adrienne Yee AUDIENCE DEVELOPMENT DATA POINT director of audience & content Tightening labor market Area airports are the worst partnership development New York City added a quarter-mil- John F. Kennedy, Newark and Michael O’Connor, 212.210.0738 NEW YORK’S PER-GALLON GAS [email protected] lion jobs in just 24 months, a record, LaGuardia airports dropped to the CRAIN’S 5BOROS according to upwardly revised TAX OF 42.6 CENTS—THE THIRD bottom of a ranking of 29 major U.S. www.5boros.com numbers from the state’s airports for on-time arrivals last Irene Bar-Am, 212.210.0133 HIGHEST IN THE U.S.—IS NEARLY [email protected] Department of Labor. The tighten- year, according to new data. A flight THREE TIMES GREATER THAN NEW SPECIAL PROJECTS ing labor market, with a record 4 that arrives more than 15 minutes manager Alexis Sinclair 212.210.0701 million employed New Yorkers and JERSEY’S 14.5-CENT RATE. past its scheduled time is considered [email protected] REPRINTS unemployment at 5.3%, has pushed late. The airports are the busiest in reprint account executive Krista Bora up average hourly wages by 3.1% in the nation, with more than 115 mil- 212.210.0750 the past year. Employers face an lion passengers annually. PRODUCTION production and pre-press director “increasingly pronounced shortage Simone Pryce of qualified candidates,” and they New Queens Library head media services manager Nicole Spell “have become more open to negoti- The Queens Library, which ousted SUBSCRIPTION CUSTOMER SERVICE www.crainsnewyork.com/subscribe ating starting salaries upward,” the its leader for overspending in [email protected] Federal Reserve reported. 2014, has tapped former city 877-824-9379 (in the U.S. and Canada). Schools Chancellor Dennis Walcott $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print Hepatitis C drug probe as president and CEO. Walcott, 64, subscriptions with digital access. The state attorney general issued led the Department of Education to contact the newsroom: www.crainsnewyork.com/staff subpoenas to 16 health insurers, from 2011 to 2013, when Mayor 685 Third Ave., New York, NY 10017-4024 including Aetna Inc. and Michael Bloomberg left office. phone: 212-210-0100 fax: 212-210-0799 EmblemHealth Inc., as it investigates Entire contents ©copyright 2016 allegations that the companies Ailing public hospitals Crain Communications Inc. All rights reserved. ®CityBusiness is a registered restricted coverage of drugs that can The city’s public hospital system trademark of MCP Inc., used under license cure hepatitis C and misled patients lost more than $420 million in the Spa-safety investigation agreement. by not properly disclosing what they first six months of fiscal year 2016, A popular spa in College Point, CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS cover. Insurers say the probe is too which began last July. That’s more Queens, indefinitely shuttered after chairman Keith E. Crain broad and does not consider the price than seven times the size of the a 6-year-old girl nearly drowned in president Rance Crain one of its pools. The city’s treasurer Mary Kay Crain, Cindi Crain of the drugs. deficit compared with the same executive vp, operations William Morrow period the previous year, accord- Department of Health and Hygiene executive vp, director of strategic Apple gets support ing to unaudited financial state- ordered all pools at Spa Castle to operations Chris Crain executive vp, director of corporate A federal judge ruled that the gov- ments posted last week. That close as it investigates the operations K.C. Crain ernment can’t force Apple to provide means the $337 million in emer- incident. Since 2013, the spa, part senior vp, group publisher David Klein vp/production, manufacturing David Kamis the FBI access to a locked iPhone in a gency funding Mayor Bill de Blasio of Steven Chon’s C. Castle Group, chief financial officer Thomas Stevens Brooklyn drug case. The decision sup- announced in January may not be has amassed at least 40 health chief information officer Anthony DiPonio ports the tech giant’s fight against a enough to keep the ailing system violations. Spa Castle has to revise founder G.D. Crain Jr. [1885-1973] California judge’s order that it create going. The administration has chairman Mrs. G.D. Crain Jr. [1911-1996] its safety plan in compliance with secretary Merrilee Crain [1942-2012] specialized software to help authori- decided to create a restructuring Health Department regulations ties hack into an iPhone linked to the plan for NYC Health + Hospitals, before it can reopen.

BLOOMBERG San Bernardino shooting. due in the spring.

6 | CRAIN’S NEW YORK BUSINESS | MARCH 7, 2016 20160307-NEWS--0007-NAT-CCI-CN_-- 3/4/2016 7:29 PM Page 1

AGENDA HEALTH CARE

Northwell may rescue Brooklyn’s hospitals A deal takes shape for $700 million overhaul of health care in the borough BY BARBARA BENSON

rooklyn’s troubled health care system work of hospitals, ambulatory care cen- may be close to finding a savior: ters, surgery centers and primary care Northwell Health is in talks with the clinics across Brooklyn incorporating Cuomo administration about managing Brookdale University Hospital and Ba new network anchored by the borough’s most Medical Center, Interfaith Medical INTERFAITH distressed community hospitals, according to Center, Kingsbrook Jewish Medical MEDICAL CENTER could be part of a people briefed on the discussions. Center and Wyckoff Heights Medical hospital network led Some $700 million in state money has been Center. Northwell is already in a part- by Northwell. reserved for overhauling nership with Brooklyn’s health care delivery Maimonides Medical system, but it has yet to be A feasibility study Center. and some politicians would like to see the $700 released despite the urgent need. In a statement, Northwell million used to build a new hospital on its 11.4- Four of Brooklyn’s hospitals are on is likely to show (formerly North Shore-LIJ acre campus, at a cost of at least $1 billion. A the state’s financial-distress Health System) said it will more politically unpopular choice is to take watch list, with fewer than 15 days that some “continue to talk to state offi- down Brookdale’s antiquated building and cash on hand. hospitals must cials and will try to be helpful replace it with a Northwell-run hospital network The Cuomo administration has where we can, but there is no with multiple outpatient locations and 24-hour held talks with big hospital net- downsize or close agreement on a feasibility sites. works with the resources to man- study.” In Brooklyn, it added, Brooklyn lawmakers are impatient with Gov. age those troubled facilities and its primary focus is on Andrew Cuomo’s inaction on that $700 million. boost primary and outpatient care Maimonides. Last month, Brooklyn Borough President Eric in Brooklyn. But none have been willing to There is a lot of political distance to travel Adams and 15 local politicians wrote to Cuomo sacrifice their own bottom lines by helping the before Northwell signs any management con- about his lack of a “specific plan on how this failing hospitals. tract. A feasibility study is likely to show that money will be used in Brooklyn. The silence from Northwell is now moving closer to agreeing to some hospitals must downsize or close. your office and the New York State Department a feasibility study that could pave the way for a Brookdale, an old, crumbling facility, gets a state of Health adds speculation to rumors that hospi- deal, said those familiar with the talks. The $7.8 subsidy of $100 million a year to keep it afloat as tals will be closed, merged, or both,” the billion system would create and manage a net- an essential provider. Brookdale’s management letter reads. Ⅲ

Health projects get $673 million

fforts to reduce health care costs by shifting patients away from emergency- room visits and hospital stays got a boost last week when New York state Eannounced $672.9 million in grants to hospitals and health centers across the city. The money will be used for 73 projects at city Welcomes Convene to hospitals and health centers. They include new 114 West 47th Street school clinics, an ambulatory care center and information technology systems. The money is part of a statewide award of $1.5 Our thanks to billion that is largely slated for health care infra- Rocco Laginestra, structure. The Cuomo administration created the program to complement an $8 billion federal Jared Freede, reform initiative announced in 2014. Those funds & Michael Wellen could not be used for capital projects. at CBRE for this NYC Health + Hospitals, the city’s public hospi- 35,698 SF transaction. tal system, received the largest award, totaling $281.9 million for five projects. Its plans include a $60 million effort to integrate behavioral and primary care across the health system and a $20 million patient outreach center. The Mount Sinai health system received a total of $34 million for hospital-based projects, including a $20.5 million ambulatory care center at Mount Sinai St. Luke’s in the Bronx. It also Additional Leasing Opportunities Available. Please contact: obtained an additional $30.3 million to develop an IT system for its network of health care providers. Tom Bow [email protected] 212.257.6610 “While it’s significant, the requests were a multiple of that, and I don’t think there were frivolous Rocco Romeo [email protected] 212.257.6630 requests,” said Dennis Whalen, president of the Ashley Gee [email protected] 212.257.6596 Healthcare Association of New York State.

BUCK ENNIS — CAROLINE LEWIS

MARCH 7, 2016 | CRAIN’S NEW YORK BUSINESS | 7 20160307-NEWS--0008-NAT-CCI-CN_-- 3/4/2016 3:06 PM Page 1

AGENDA WHO OWNS THE BLOCK REAL ESTATE

50 W. 47TH ST. Extell’s playground The busy Manhattan developer is buying properties and demolishing others on the same block as its International Gem Tower

BY TOM ACITELLI

ne of the city’s most prolific devel- opers has been collecting parcels in Manhattan’s diamond district, perhaps signaling a major new devel- Oopment there. HIGH FLYER In December 2015, Gary 1180 SIXTH AVE. Barnett’s Extell Development, the IN. TRANSITION builder behind the ultraluxury An LLC controlled by Chinese avia- 10 W. 47TH ST. tion firm HNA Group bought the 22- NEW JEWEL One57 condo tower and One story, nearly 400,000-square-foot 50 W. 47TH ST. An LLC controlled by Extell bought the Riverside Park, bought control of office spire in May 2011 for $259 office-and-retail building in August More than 50 jew- 562 and 564 Fifth Ave., between million. HNA Group owns Hainan 2015 for $74.35 million, according to Airlines. The tower generated gross elry dealers and real estate research site Reonomy. The West 46th and 47th streets. In revenue of $23.5 million in 2015, retailers own com- structure appears to be vacant, as 10 January, Extell filed for demolition compared with $21.96 million three mercial condos in W. 47th St. did not generate any rev- permits for six slender buildings years earlier, according to Reonomy. Extell’s 34-story enue in 2015, according to Reonomy. It International Gem generated $4.93 million in gross rev- next door to Nos. 562 and 564. Tower, erected in enue in 2014. The firm owns enough addresses on the 2013. east end of the block—including two buildings other than the six slated for ACQUIRED demolition and the two recently SOLD 2 W. 47TH ST. purchased—that it could build 3-13 W. 46TH ST. An Extell-controlled LLC one of the biggest new towers Extell sold this building to an LLC con- bought this office-and-retail along Fifth Avenue in years. The trolled by foreign investors for $11 building in January 2014 for million in December 2009. The own- 10 buildings amount to more than $56.46 million. It had last ers obtained $19.5 million in financ- changed hands in March 260,000 existing square feet, ing for the more than 38,000-square- 2007, for $26.32 million. Its with several thousand more in foot office tower in early 2015. That gross revenue was $4.03 mil- financing followed renovations and a developable air rights. lion in 2015, compared with leasing push that resulted in 100% $3.52 million three years ear- They are also on a block that occupancy, according to CBRE Inc., lier, according to Reonomy. has long been the hub of the which handled the 2015 financing. North American jewelry trade. There are more than 2,600 jewelry-related businesses in the diamond district, COMING DOWN according to the area’s business improvement 3-13 W. 46TH ST.

district. Most are small, independent vendors. These six five-story, Extell-owned com- Together, they ensure steady foot traffic to mercial buildings, one just over 2,700 the block and its environs. square feet, are slated for demolition, according to the city Buildings The eight buildings clustered contiguously at Department. POSSIBLE FLIP the corner of West 46th and Fifth run to more 564 FIFTH AVE. than 110,000 square feet combined. The other In December 2015, an LLC controlled by two buildings are the 78,230-square-foot 2 W. AIR RIGHTS Joseph Sitt’s Thor Equities, a major pri- 47th St. and the 71,738-square-foot 10 W. 47th St. 562 FIFTH AVE. vate real estate investment house, bought Extell has already built big on the block. It this building from Israel’s Bank Leumi SL Green, the city’s largest commer- USA for $92 million, according to city completed its International Gem Tower at 50 W. cial landlord, bought a 49-year net records. The 28,000-square-foot, office- 47th St. in 2012. It is not yet clear what the pur- lease at 562 Fifth Ave. in December and-retail building’s half-timbered façade pose of a new Extell project along Fifth Avenue 2015, with a $100 million option to makes it one of the area’s more eclectic purchase the 42,000-square-foot, structures. According to media reports in would be—the firm did not respond to requests office-and-retail tower. Thor Equities January, Thor flipped it to Extell. There is for comment—but its shopping spree along the bought the ground lease for the land no record of the flip in city records. block has created one of New York real estate’s underneath 562 Fifth Ave. in Ⅲ December for $17.5 million, city biggest guessing games. records show. According to media reports in January, Thor flipped the lease to Extell, which also paid SL Green $11.7 million for air rights above 562 Fifth. OASISNYC.NET

8 | CRAIN’S NEW YORK BUSINESS | MARCH 7, 2016 20160307-NEWS--0009-NAT-CCI-CN_-- 3/4/2016 3:21 PM Page 1

AGENDA REAL ESTATE

Unions go separate ways on mayor’s housing plan Heritage Healthcare Affordability remains an issue as City Council vote nears Innovation Awards 2016

ook for more headwinds as Mayoral aides have said if too much Mayor Bill de Blasio tries to affordability is required, projects would push his affordable-housing not be profitable and would not be built. Heritage Provider Network honors innovative plan through the City — ROSA GOLDENSOHN New York metropolitan area healthcare leaders with the LCouncil this month. Unions are lined ﬁ rst annual Heritage Healthcare Innovation Awards. up both for and against the plan, and a East Village gas explosion group of City Council members say claims restaurant as final victim This is your chance to nominate a colleague, they won’t pass a plan that leaves out Stage Restaurant, a 35-year-old diner peer or organization. the city’s poorest families. in the East Village, announced last week Award Categories Leaders of six of the city’s most mus- that it will not reopen after wrangling cular unions wrote to council members with its landlord over an alleged improp- Heritage Innovation in Healthcare Delivery Award last week urging support for the mayor’s er gas hookup. Stage has been closed planned changes to zoning laws, which since March 2015, when a deadly gas Heritage Technology Innovator in Healthcare Award they said will create housing the unions’ explosion paralyzed surrounding busi- Heritage Research Investigator in Translational Medicine Award members can afford. nesses in the neighborhood. The unions say the majority of the “The events of last year have been Heritage Healthcare Leadership Award affordable units built under the plan overwhelmingly devastating on us and Heritage Healthcare Organizational Leadership Award would be within reach of school mainte- we have decided to close Stage’s door,” nance workers, building service workers, Roman Diakun, the restaurant’s owner, For more information, visit crainsnewyork.com/heritage nursing assistants and other union work- wrote on the eatery’s Facebook page. ers. And the apartments designated for On March 26, 2015, a gas explosion NOMINATIONS NOW OPEN! those in higher income brackets would caused by an illegal hookup killed two NYC Awards Luncheon: May 16, 2016 serve members including nurses, tele- people and led to the destruction of three phone company technicians and physi- buildings directly across the street from cian assistants, they wrote. Stage. Days after that blast, an unidenti- “Our members will be among the fied person complained of smelling gas in hundreds of thousands of working New the Stage’s building, a six-story residen- Yorkers who will directly benefit from tial tenement at 128 Second Ave. this desperately needed housing plan,” After inspections by Consolidated said a letter signed by George Gresham, Edison and the city, the gas in the build- president of health care workers’ 1199 ing was shut off. The restaurant was sub- SEIU; Hector Figueroa of building servic- sequently fined for allegedly performing es’ SEIU 32BJ; Peter Ward of the Hotel work without a permit. Trades Council; Henry Garrido of munic- Then, Stage’s landlord filed an evic- ipal employees’ DC 37; Stuart Appelbaum tion notice accusing the restaurant of of the retail workers’ union; and Dennis illegally siphoning gas—a charge Diakun Trainor, who represents the denied. The dispute has since been Communications Workers of America. resolved, he said, but the lost business Leaders say their members are forced and expense associated with getting the to live far outside the city or pay rents diner back on its feet were too great. they can’t afford. Those unions have cre- “We are sad to say that Stage cannot ated a nonprofit organization, United for reopen,” Diakun wrote. — JOE ANUTA Break Away... Affordable NYC, to rally public support for the mayor’s housing plan. Construction boom heralds Council members including Margaret office-renting renaissance Chin, D-Manhattan; Vanessa Gibson, D- In the latest indication of how con- and make your business better Bronx; and Mark Levine, D-Manhattan, struction in the city is booming, con- are expected to demand apartments be struction engineering firm MG set aside for households that take home Engineering is expanding its office near as little as $20,000 a year. Penn Station, extending its lease for “We want to make sure that everyone 30,000 square feet on the entire 12th and in our neighborhood has an opportunity 13th floors at 116 W. 32nd St., a 15-story to apply for this housing,” Chin said at building a block away from the transit council hearings last month. hub, and taking 15,000 square feet on the And construction unions say they 11th floor. The lease will span about 12 won’t back the plan unless it requires years. The asking rent for the space was affordable-housing builders to pay con- $52 per square foot. struction workers prevailing wages. Pan Am Equities, which owns 116 W. Some affordable-housing advocates say 32nd St., has improved the 220,000-

that would raise the cost of housing and square-foot property and is finishing a Industries served: pad the pockets of already well-paid renovation of the building’s lobby. Financial Services . Manufacturing & Distribution . Technology union members. Jeffrey Rosenblatt, a leasing broker 1RWIRU3URÀW . Retail . Construction . Architecture & Engineering The proposals will get a vote this with CBC Alliance, represented Pan Am Real Estate . Healthcare . Transportation & Shipping month, a City Council spokeswoman Equities in the deal, while Michael Media, Entertainment & Telecommunications said. The administration would require Frantz and Mitti Liebersohn, brokers at

affordable units to be included in any Avison Young, represented MG 488 Madison Avenue, New York, NY 10022 project that benefits from a rezoning. Engineering. 50 Jericho Quadrangle, Jericho, NY 11753 Some critics have said the dwellings MG Engineering ranked No. 93 last 10 Esquire Road, New City, NY 10956 www.grassicpas.com would be too expensive and would trig- year on Crain’s list of the 100 Best Places ger gentrification and displacement. to Work in New York City. — DANIEL GEIGER

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AGENDA INSTANT EXPERT BROADBAND BY MATTHEW FLAMM Why so many New Yorkers still cannot get FiOS [in 5 steps]

THE PLAYERS

THE ISSUE The mayor entered office vowing action against Verizon, which he had long accused of dragging its feet in rolling out FiOS and In 2008, Verizon signed 2 favoring wealthy neighborhoods with connections. The company a franchise agreement denied any bias in its deployment, and turned out to have one important 1 with the city promising fact on its side: The well-off couldn’t get FiOS, either. The to make its cutting-edge Communications Workers of America, whose members would benefit FiOS broadband service from expansion of the service, launched a “Where’s My FiOS?” available to every New York campaign. The dispute reached new heights last June with the release of household by the end of a city audit that determined Verizon had failed in multiple ways to live up June 2014. Two hurricanes to its franchise agreement. (Common Cause/NY followed up with forums and a labor strike slowed in the boroughs that have incomplete wiring—Staten Island has long the build-out of the fiber- been fully connected—at which scores of would-be customers optic network, but it’s now complained about not having access to the service.) Verizon attacked 15 months after the the audit as riddled with errors and accused the city of changing the telecommunications giant announced the work was done, and definitions in the deal. The company also complained that it hadn’t been about a third of all New Yorkers still can’t get the service. The given enough credit for its unprecedented $3.5 billion effort to wire the city blames Verizon. Verizon blames landlords who block access entire city. Its rivals, Cablevision and Time Warner Cable, have franchise to buildings, and neighbors who won’t let it run cable through agreements only for sections of the city, which they wired decades ago. their backyards. The company also cites the exclusive deals that some buildings have with competitors. The situation has created a curious dynamic, with Verizon mailing advertisements for its television and high-speed Internet service to households that cannot get it. Mayor Bill de Blasio believes a widely available FiOS could foster competition among providers and further his goal of bringing affordable Internet access to all New Yorkers.

SOME BACKSTORY Verizon has all but Clearly, Verizon acknowledged over the years wants more 4 that it was having trouble FiOS customers. meeting its franchise obligations. In 2013 and 2014, the company was The question YEAH,BUT... pushing to adopt a “grid” approach for is how to hook its marketing and deployment Clearly, Verizon wants more FiOS customers. The question efforts—targeting neighborhoods one them up in an is how to hook them up in an economical way. A lot has at a time, rather than serving economical way 3 changed since 2008, when it had big plans for the service. customers wherever they appeared. New York’s largest publicly held company is now focused on its The city’s Department of Information far more profitable wireless business (Verizon ended FiOS’ Technology and Telecommunications, national build-out in 2010), and Time Warner and Cablevision which oversees the franchise, worried have improved their broadband offerings. Verizon not only has to that Verizon would ignore installation dig a trench to the customer’s building, it also has to persuade deadlines outside the targeted areas enough customers to switch services to make that digging worth (the agreement sets a six-month the cost. deadline, with a six-month extension for delivering service once a customer makes a request). DoITT asked for service-request data and said Verizon WHAT’S NEXT did not supply it. Verizon’s view is that the two sides could not agree on Following the audit, and Verizon’s insistence that it was in compliance, which data would be useful. It the mayor put the company on notice: DoITT and Maya Wiley (right), the dropped the grid idea. The company 5 mayor’s counsel and his lead on broadband issues, would review all city agency says it continues to add to the contracts for telecommunications services and make the call on discretionary 2 million-plus households that can deals. (The city spends well over $100 million a year on Verizon’s voice and data now receive FiOS. The mayor’s office services.) Wiley promised to be “fair” to Verizon but added she would “make responds that in a city of 3.4 million decisions that benefit good corporate actors.” There has been no word about deals households, that’s not good enough. getting blocked, but both sides continue a sometimes testy dialogue. BUCK ENNIS

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AGENDA VIEWPOINTS

year. Meeting the investment target how remains a big mystery. My guess Strong economy won’t hold this year appears unlikely, and that is that it can’t be done. would lead to another boost in the There’s more. The IBO says the city off budget disaster forever required contribution. is underestimating education spend- Rapid increases in spending foretell a ‘day of reckoning’ ahead ● Interest costs. Debt service is forecast ing, and the city comptroller points to climb almost 30% during the next out that social-services costs are ris- three years, to more than $8 billion, ing rapidly, including those for the LAST WEEK was question is how long this moment because the de Blasio administration homeless—the implication being that budget week in the will last. is taking on more debt to fund an more money will be needed. city: The state Here is the list of budget busters ambitious capital plan. You get the picture. comptroller, the city that are so worrisome. ● The MTA. The city has yet to explain I won’t harp on this issue because comptroller and the ● Hospitals. The city is writing off the where it will get the $1.8 billion it readers have no interest in following Independent Budget $337 million that NYC Health owes the transit agency for someone who becomes Chicken Little. Office all weighed in + Hospitals owes it for this its capital plan over the next And I think the city economy contin- GREG DAVID on Mayor Bill de fiscal year and continuing a % several years under the deal ues to show significant momentum, so Blasio’s financial $204 million match of federal the mayor reached with the tax revenues should continue to cover plan for the next year. The language money even as the federal 30 governor. the increases for the next year or two. ESTIMATED ● in their reports was dry and matter- funds disappear. The city rise in debt The governor. Andrew Cuomo At some point, however, the econ- of-fact, but the implications faces the near certainty of service, to originally proposed that the omy will head into another recession, were clear. covering more H+H losses in $8B, in next city assume about $1 billion a the reserves the city has built up will be three years Spending is increasing so quickly— the coming years. year in additional Medicaid dissipated in about 18 months, and the because of de Blasio’s initiatives and ● Pensions. The upcoming costs and $485 million a year day of reckoning will arrive. The budg- factors beyond the mayor’s control— budget adds $600 million a year in for CUNY’s senior colleges, and give et bloodbath will be very painful for all that budget disaster seems inevitable. pension contributions because the state $650 million saved in a com- New Yorkers. For the moment, the city’s econo- retirees are living longer, which fol- plicated bond refinancing. Now he my is strong, and gains in tax collec- lows an increase because investment says that the money can be saved GREG DAVID blogs regularly at tion are more than keeping pace. The results didn’t meet the target last without affecting the city budget, but CrainsNewYork.com.

homeowners in the city are uniform. A tale of two taxpayers That means lowering their ratio to All New Yorkers should enjoy mayor’s low property rates BY MARTHA STARK that of the mayor’s house: 1.2%. The decision is not only within the city’s control, it is legally required. ity Council Speaker under 5%), the Bronx (5.2%), and The Real Property Tax law provides Melissa Mark-Viverito Staten Island (5.3%), it is even that all assessments must be uniform said at a Crain’s forum last higher. within each tax class—uniformity is SMALL BILL: month, “We all know the The mayor pays about $3,600 in the sine qua non of the property-tax De Blasio pays less than one-quarter Cproperty-tax structure is unfair,” but annual property taxes for a house system. of what other added that fixing it is not a council pri- that the city estimates is worth $1.4 In addition, the mayor should cap homeowners do. ority at this time. At a recent town hall million. In Bay Ridge, the median tax the property-tax levy. While both meeting in Brooklyn, Mayor Bill de burden for homeowners is about the mayor and the City Council gen- to $34,600, between 2010 and 2013. Blasio acknowledged that there are $6,200, even though the city esti- uinely believe that they have not Median income of owners who live significant problems with the mates that the median home in the raised property taxes—because the alone (so-called primary households) property-tax system but said he had neighborhood is worth only average property-tax rate (which no dropped by almost 16%, to $25,272. no solutions. The mayor said he could $785,000. If Bay Ridge homeowners one pays) is frozen—New Yorkers Median total homeowner-household relate to the pain described by the Bay paid the same effective tax rate as the know better. The tax rate paid by one income, which includes the income Ridge audience because he, too, pays mayor, their median tax burden group of property owners—home- of household members over age 15, taxes on his home in Park Slope, would be less than $1,900. (The dis- owners—has increased 13% in the was up a modest 5%, to $76,000. Brooklyn. crepancies can stem from a variety of past five years. Homeowners’ assess- Continuing to increase the property- The mayor cannot possibly relate factors, but it’s not clear which ones ments have increased 17% during tax levy at a pace that far exceeds to the struggles of Bay Ridge home- explain the mayor’s low rate.) that period. While homeowners in homeowners’ income is uncon- owners. As a result of current assess- Although city officials argue that the rest of the state have seen only a scionable and unsustainable. ment policy, his house is assessed at these inequities can be fixed only if modest increase in their property- For a mayor whose political just 1.2% of its city-estimated market Albany changes the law, the solution tax levy since 2011, when the state mantra includes a commitment to value. However, in Bay Ridge, the is simple and can be implemented adopted a rate cap for all other juris- eradicating inequality, not address- median assessment is 4.3% percent. immediately. The mayor should dictions, in New York City the levy ing the blatant inequities in the prop- For homeowners in Queens (just ensure that all assessments for paid by homeowners is a whopping erty-tax system from which he ben- 32% higher than it was in 2011. efits, and for which the solutions are CORRECTIONS Unfortunately, homeowners’ solely within his control, is iniqui- Gov. ANDREW CUOMO’s proposed paid-leave plan would provide 67% of wages up to $1,000 per week incomes have not kept pace. tous. There are solutions. The mayor in 2021, when the program is fully phased in. This information was misstated in the chart in Greg David’s Feb. 29 column, “Tale of the tape on family leave bodes well for the governor.” According to the same data source just needs the will to Urban planner JIM VENTURI’s grand plan would route New Jersey Transit trains through Penn Station to that the mayor cited as justification implement them. a new terminal and rail hub in Port Morris in the Bronx, and connect them to Metro-North on a now-abandoned line. He also would move Manhattan’s Javits Convention Center to the new Bronx rail when forcing owners of rental build- terminal. These facts were misstated in the Feb. 29 “New life for Rikers Island.” ings to accept a 0% rent increase last Martha Stark is a distinguished lecturer KAREN WISH joined the Lighthouse Guild, the health care and service provider for the blind year, median income for homeown- at Baruch College and a former city and visually impaired, as chief marketing officer. This information was misstated in the Feb. 22 Executive Moves. er-household members fell by 1.1%, finance commissioner. NEWSCOM

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AGENDA THE LIST NY AREA’S LARGEST WOMEN-OWNED COMPANIES Ranked by 2015 revenue

THE SCOOP TRENDS MORE BIZ, BUT LESS CAPITAL FOUND IN TRANSLATION CONFIDENT COMPANIES Language translation services company Walsh Electrical Contracting and MacQuesten TransPerfect has the most New York area Construction Management have the sunniest omen-owned businesses now constitute a record high of employees on the list, nearly doubling the outlooks on their revenue prospects for 2016. 40% of private companies in New York City, having total of the No. 2-ranked firm. increased four times more quickly than male-owned firms 2015 NY area employees Projected revenue increase in the past five years, new data from the Center for an TransPerfect Walsh Electrical Contracting Inc. UrbanW Future show. 857 72.3% Despite that growth, women-owned companies remain relatively small. Fourteen of the 25 largest women-owned firms on Crain’slist had Artech Information Systems MacQuesten Construction Management revenue under $75 million in 2015. Expansion can be a struggle. 466 36.4% The biggest hurdle is obtaining financing, be it through venture- capital firms or banks, where women can get short shrift. Loren Communications International Ltd. Hired by Matrix Inc. “I had to go through four banks,” said Barbara Armand, owner of 300 19.4% construction-management firm Armand Corp. “I finally ended up Sharp Decisions Inc. Atrium Staffing with a small bank that refinanced my debt and gave me a decent line of 300 19.4% credit. Even that bank wanted my husband to co-sign, and that peeved me. It doesn’t make sense—he’s not involved with the business.” Ruder Finn Inc. 24 Seven Inc. “I’ve heard stories from other women saying the same thing. It’s 198 15.2% demoralizing. For all the work you do on a daily basis, it’s like asking a 0 200 400 600 800 1,000 0% 10 20 30 40 50 60 70 80 parent to sign.” Source: Crain’s research Source: Crain’s research If women-owned companies had easier access to capital, the benefits to New York could be immense. Ninety-one percent of the city’s METRO AREAS WITH THE MOST SHARE OF NYC'S WOMEN-OWNED 376,000 women-owned businesses don’t have a single employee other WOMEN-OWNED BUSINESSES IN 2015 BUSINESSES, BY BOROUGH than the owner herself. “If we can get more of these women entrepreneurs to scale up, no mat- 700K 676,700 Staten Island ter what industry they’re in, that will have a powerful impact on the city’s 600K economy,” said Jonathan Bowles, executive director at Center for an 3.4% Bronx 500K Urban Future. 436,900 16.6% If one-quarter of these single-employee firms hired one worker, 400K Queens 23.7% the city would see an influx of nearly 100,000 new jobs. Men can play 305,000 300K a big role in helping women entrepreneurs reach new levels of 224,100 221,100 28.6% 200K Brooklyn growth. 27.8% “It’s going to take a few brave men,” Armand said. “Men who are well Manhattan 100K respected in their industry to give opportunities for women to do busi- 0 ness, and encourage the same of fellow business owners.” NYC L.A. Chicago Miami Dallas – GERALD SCHIFMAN Source: American Express Open Source: Center for an Urban Future

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THE LIST NY AREA’S LARGEST WOMEN-OWNED COMPANIES Ranked by 2015 revenue

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RESTAURANTS | EATING KOSHER

When a RABBI runs the KITCHEN New York’s kosher restaurant scene is expanding, which means the business of making sure eateries conform to Jewish law is growing, too By AARON ELSTEIN

t the crack of dawn one recent morning, a group of truckers stopped at Le Marais on West 46th Street to drop off the day’s supplies: 300 pounds of beef, 850 pounds of potatoes, 30 pounds of mesclun.“Where’s the guy in charge?” a deliveryman said, anxious to start unloading. A moment later, Rabbi Avrohom Keller strolled in. Keller isn’t the owner of Le Marais, nor is he the chef. Strictly speaking, he isn’t even employedA by the popular steakhouse. But he is unquestionably in charge. Keller is a professional mashgiach. His job is to make sure that all the food brought into and prepared at Le Marais is kosher. It’s a crucial position, considering that in a city saturated with 80 pricey steakhouses, Le Marais RABBI AVROHOM KELLER, owner Jose Meirelles and executive chef Mark Hennessey (both Catholics) kashrut monitor at Le Marais, have built a $7 million business by creating a restaurant where observant checks scallions for the presence of insects. Jews can loosen their ties and devour dry-aged prime rib or tournedos with a dairy-free bearnaise sauce. The 21-year-old institution, probably New York’s top-grossing kosher restaurant, is revered by a certain subset of foodies for helping lay to rest the notion that eating in a kosher restaurant means settling for inferior food. Keller became Le Marais’ chief mashgiach (Hebrew for supervisor and pronounced “mahsh-ghee-ach”) about a decade ago after the restaurant filed a defamation suit against his predecessor, who accused the eatery of breaking kosher rules. Le Marais pre- vailed in court, but business sank by 30% after the former supervisor used social media to encourage people to boycott the place. Keller operates in a less heavy-handed manner but leaves no doubt on where he stands. “As long as the staff follows the rules, things run smoothly.” Those rules are based on thousands of years’ worth of rab- binic interpreta- tions of the handful of lines in the Torah that form the basis of kashrut, the

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laws of kosher food. Of the metro area’s 694,000 Jewish households, Keller began this particular morning by opening 32% kept kosher in 2011, up from 28% in 2002, Kosher Commandments one of the delivery boxes and confirming that the according to a study by the UJA-Federation of New ground ginger and black pepper inside were certified York. A 2013 Pew Research study found that Jews THE LAWS GOVERNING KOSHER FOOD kosher. He signed an invoice, headed to the kitchen younger than 50 were nearly twice as likely to keep can be complex: A primer on the Orthodox downstairs and began opening the refrigerators that kosher as older ones, in no small part because the Union’s website takes 3,719 words. The basics are padlocked at closing to ensure that no one inad- Orthodox Jewish population is increasing faster than can be summarized as follows. vertently ruins the kitchen’s kosher status by cook- the secular one. To be kosher, animals must have cloven ing noncertified ingredients on the stove or using the The number of kosher restaurants in the city has hooves and chew their cud. Fish must have wrong utensil. increased by at least 50% during the past two scales and fins. Keller then picked up a wrench and twisted a knob decades, according to Elan Kornblum, publisher of Animals must be slaughtered using an ultra- to turn on the gas stove. He got on his hands and knees the magazine Great Kosher Restaurants. Today, there sharp knife so they die instantly. Their organs and, using a rolled-up receipt that he’d set aflame, lit are nearly 300 kosher restaurants in New York, must then be inspected for abnormalities, and the ovens. He does this every day because observant according to the city’s Department of Health. That all the blood drained out. The meat must be Jews require that their meals be “prepared” by number sounds modest in a metropolis of more than soaked in cold water and salted. another Jew, which can be accomplished legalistical- 20,000 eateries, but is quite close to New York’s 316 ly by having one turn on the gas. French restaurants and 304 Indian ones. (For the Meat cannot be eaten with dairy. Keller next examined the salmon and tuna to make record, city inspectors count 5,523 “American” Utensils for preparing or eating meat dishes sure they had the scales and fins necessary to prove restaurants; 2,134 Chinese; 1,183 pizzerias; 998 cannot be used, or come into contact, with Italian; 717 Japanese; 348 those used for dairy dishes. “Asian”; 272 Thai; 119 Greek; Wine and other grape products must be pre- “FOR PEOPLE WHO KEEP KOSHER 82 Russian; 35 Armenian; 3 pared by Jews or boiled. Chilean; 3 Czech; and 2 Source: Orthodox Union IT’S NEVER BEEN BETTER. IT DIDN’T Polynesian. There are also 148 USED TO BE THAT WAY” fried-chicken joints.) “For people who keep kosher, it has never been better,” said Sidney Cohen,who they were kosher, unlike seafood such as shark or with his wife, Tammy, owns a 70-seat restaurant on scallops. He’d examine the day’s meat shipment East 81st Street called Eighteen. “Anything you want later—it wouldn’t take long to see if anything was kosher you can usually get. It certainly didn’t used to awry there. “Pretty frequently someone makes a be that way.” mistake and sends us the wrong thing,” he said. The person most responsible for that is Rabbi “Very rarely they send us dairy, which we send Menachem Genack, the most powerful person in the back.” The laws of kashrut prohibit the mixing of kosher food world—certainly in New York, most meat and dairy products, and kosher restaurants likely in the U.S. and possibly in the world. serve one or the other but never both. Genack, 68, is CEO of the kosher certification was not always the superintendent, but frequently Keller began inspecting the day’s produce. service of the Orthodox Union, better known as the was the man with the little skullcap who would brook Although vegetables are an afterthought with most OU. The Manhattan-based nonprofit pioneered the no interference with the furtherance of his instruc- steakhouse customers, this is the most time- modern kosher certification process in the 1920s. Its tions,” said Fred Heinz, a company vice president, in consuming of his many tasks. It can take nearly half first big client was Heinz vegetarian beans. (A close a 1956 speech to the OU. “The fact that I am here today of his nine-hour shift to ensure that Le Marais’ fruits scan of many popular packaged goods reveals the indicates how well we’ve learned to cooperate with and vegetables are free of bugs (virtually all insects are group’s symbol, a circle with the letter “U” inside. A each other.” traif—i.e., nonkosher). Keller sliced the stems off a “D” next to it indicates dairy ingredients.) Kosher products were still a backwater of the food package of strawberries, rinsed them several times “Many of the men and women in our factories had business when Genack took the helm in 1980, and drained the fruit through a silk screen. He then to learn the hard way that the real boss in the plant CONTINUED ON PAGE 16 placed the silk on a lighted backdrop and took a long, hard look. He repeated the process for several bunches of scallions. Good news: No bugs. He gave the kitchen staff tasked with preparing the day’s meals the word they’d been waiting for. “OK,” he said, nodding to the staff. “You can start now.”

ELLER, 44, hails from Crown Heights and studied at Oholei K Torah, a seminary founded at the behest of Rabbi Menachem Schneerson, the late chief of the Chabad-Lubavitch movement, a Jewish-outreach organization with 4,000 emissaries on college campuses and in cities across the world. Keller is one of about 1,000 kosher-kitchen supervisors in the city. They can be found anywhere kosher food is prepared outside a home: hotels, supermarkets, catering companies, bak- eries, hospitals, even schools. Job oppor- LE MARAIS executive chef Mark tunities are growing—along with the Hennessey (left) and owner Jose number of organizations offering kosher Meirelles say getting along with the mashgiach is of utmost importance. certification—because more people are keeping kosher, and kosher-keepers are

BUCK ENNIS eating out more.

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RESTAURANTS| EATING KOSHER

at which time the OU inspected about 400 food- from restaurant cer- ANOTHER REASON FOR THE REVENUE production facilities. Today, a full-time staff of 60 tification, for which it rabbis and hundreds more part-time field represen- typically charges GAP IS WINE.“KOSHER WINES HAVE tatives inspect 9,000 production facilities from $1,300 a month. CERTAINLYGOTTEN BETTER, BUTYOU Teaneck to Tibet that manufacture 900,000 food Le Marais, one of products or ingredients. Additions in the past few only about 30 restau- CAN’T CHARGE A LOT FOR THEM” years include Glenmorangie scotch and Tootsie Roll rants it certifies local- candies. ly, chooses the OU’s stamp of approval respond to a request for comment.) To help lower “It’s a safety check,” Joe Perez, a senior vice pres- over a competitor’s because its certification is so well food costs, Sidney Cohen of Eighteen has started ident at Goya Foods, said of the kosher label. “A large known and accepted. “It’s important we have their buying produce from wholesaler Restaurant Depot part of the population, Jewish or non-Jewish, looks logo on our window,” said Meirelles. and avoiding middlemen. “You pick exactly what at it as a seal of quality and cleanliness.” you want, and they deliver,” he said. For a long time, the Orthodox rabbinate’s hold EFORE INSPECTING KITCHENS, OU rabbis inter- Then there is the shorter week. Le Marais is open on the certification business was backed by an 1882 view restaurateurs to make sure they will only about 270 nights a year; Smith & Wollensky is state law that said any food advertised in the state B take kosher laws seriously. The skepticism is open 365. So even though the two restaurants both as kosher had to be processed according to warranted: Running a restaurant in New York is serve about 700 people per day, Le Marais’ annual Orthodox religious requirements. The New York hard; running a kosher one is especially complicat- revenue is less than a third of Smith & Wollensky’s State Department of Agriculture and Markets even ed. Spend enough time with owners of kosher $26 million, according to the trade journal Restaurant employed a team of kosher-food inspectors who restaurants and you’ll hear quite a lot of complaints Business. had the power to fine violators or refer them to about the hassles of keeping the place kosher, rang- Another reason for the revenue gap is wine. It typically makes up 40% of steakhouse sales but only 25% at Le Marais, which charges less for wine. “Kosher wines have certainly gotten better, but you can’t charge a lot for most of them,” Hennessey said. Le Marais clients also drink less of it than customers at similar but nonkosher restaurants, he said. Asked why, Meirelles, who before opening Le Marais was chef at Brasserie Les Halles on Park Avenue, shrugged. “It’s cultural,” he said. Among the biggest costs for kosher restaurants are the kitchen supervisors. Wages for the mashgiachs, paid by the restaurants, begin at $18 an hour. That means at least an extra $100,000 a year in labor costs for the two supervisors whom most restaurants need. It’s a hefty price, considering restaurant prof- its are measured in pennies on the dollar. A large part of Hennessey’s job is getting along with Keller, even if it’s irritating when the rabbi turns up late and delays everyone from starting their work. “If there’s an issue, he’ll let us know and we’ll say ‘OK, under- stood,’” Hennessey said. Not all restaurateurs can put up with the OU’s strictures. Ephraim “Effy” Nagar, owner of Talia’s on Amsterdam Avenue near West 93rd Street, had been certified by the OU but took his business elsewhere after a dispute over mixing wine and music. MASHGIACHS MUST ENSURE all food is kosher and is prepared according to Jewish law. That means lighting the stove, in- On a recent evening, his place was packed with specting the meat, making sure the fish arrives with scales and fins, and sifting out bugs, which are not kosher, from produce. the secular and the devout, including a table with diners wearing the black-and-white garb of the Satmars, the city’s largest Hasidic community. The prosecutors. ing from the expected (e.g., the insensitivity of crowd was enjoying lamb shanks and wine as a gui- But in 1996, two Long Island butchers sued, argu- supervisors to business concerns) to the inevitable tarist in the corner played Bob Dylan’s “Lay Lady ing the law showed an “impermissible partiality for (e.g., suspicions that some certification groups are Lay” and Van Morrison’s “Brown Eyed Girl.” (Talia’s the Orthodox tradition.” A federal judge agreed. The more interested in extracting fees than enforcing progressive approach to the business is also reflected law was rewritten in 2004 to strip state inspectors of Torah law). in its being open on the Sabbath. It manages that by much of their authority, and a few years later most The gauntlet of challenges starts with the incon- requiring reservations and payment for prix fixe din- were let go during the budget crunch caused by the venient fact that many kosher restaurants are closed ners in advance of sundown Friday night, eliminat- financial crisis. The state’s kosher law-enforcement about 90 nights a year, including all Fridays and ing the need for money to change hands.) division today is a one-person office. many Saturdays (when the Sabbath-ending sunset Talia’s combination of wine and live music dis- That change helped pave the way for growth in comes at an impractically late hour), as well as pleased the OU, which in 2009 told Nagar to stop it or the certification business for restaurants (which tend Passover and several other holidays. his certification would be revoked. The OU rabbis to be dominated in each city by a local group of rab- Moreover, owners typically pay about $15,000 contended that serving wine while live music is per- bis) and the far bigger manufacturing market. The annually to an organization or group of rabbis who formed—except during occasions such as weddings Association of Kashrus Organizations lists more than certify their place as kosher. That’s in addition to the and bar mitzvahs—dishonors the memory of the 70 U.S. members. There are hundreds more certifi- salaries of rabbi-approved kitchen supervisors like destruction of the Temple in Jerusalem by the Roman cation authorities that aren’t part of the association. Keller who make sure the numerous laws governing Empire. Nagar said he dropped the OU and turned to Timothy Lytton, a law professor at Georgia State kosher food are rigorously observed at all times. an Upper West Side organization called Mehadrin University who’s written a book about the certifi- Prices of nonkosher beef have been falling in Kashrus to certify his restaurant. cation authorities, estimates that five organiza- recent months after rising steadily for several years. “You tell me I cannot have music and wine and tions control 80% of the business, with the OU But the cost of kosher meat, typically twice as much, dancing because of memories of the destruction of dominating the field. As a religious institution, the has remained high. There is so little high-quality the Temple in Jerusalem?” said Nagar. “It’s out- organization isn’t required to publicly disclose its kosher beef available that many restaurants rely moded. We don’t believe in certain restrictions that finances as other nonprofits must, but it likely heavily on a single supplier, Queens-based Alle according to some are applicable in 2016. It’s not the generates about $80 million in revenue annually, Processing. When the company recently raised the OU who decides. It’s God.” based on public filings from a competitor and cal- price of hanger steak to $18 a pound from $11, some Genack defended his minions. He noted that an

BUCK ENNIS culations by Lytton. Only about 10% of that comes eateries took the item off the menu. (Alle didn’t estimated one-third of the Jewish population

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died in the period after the Temple’s destruction in crowds. A.D. 70. “It was equivalent to the Holocaust,” he But Tov has no regrets. “Ask me again in a said. “If we hadn’t gone through all those historical few months, but I like the way things have catastrophes, there would be as many Jews in the started,” he said. Traffic rose by 20% after the world as Chinese.” change, without any advertising. Indeed, word travels quickly when a kosher IMPLY OPENING A KOSHER restaurant requires all restaurant opens. The Facebook group Great sorts of additional steps that cost time and Kosher Restaurant Foodies has nearly 19,000 Smoney. In 2013, an Israeli restaurateur named members swapping news, reviews and food Eyal Tov opened a place on Rivington Street to give photos. That’s helpful because most kosher Lower East Siders another option for a quick bite. restaurants can’t afford to advertise because Business was good at the Falafel Shop, where the their operating costs are so high. $6.75 namesake sandwich features excellent hum- “Our marketing budget goes to pay for mus and tahini, tangy pickles and a side of bracing meat, having a sign on our door saying we are hot sauce. But Tov soon realized that the neighbor- certified by OK, and the mashgiach,” said KOSHER INC.: Rabbi hood that once was the epicenter of New York’s Tammy Cohen, the owner of Eighteen. She Menachem Genack may be Jewish community no longer had any kosher restau- remembers eating at Schmulka Bernstein’s, a most responsible for the growth in kosher culinary rants. (The nearby Katz’s Delicatessen is “kosher much-missed Lower East Side kosher- options. style”—i.e., under no supervision and not claiming Chinese emporium, and traces the birth of to be truly kosher.) modern kosher restaurants to 1993, when The 34-year-old restaurateur saw an opportuni- Medici 56 opened in midtown. ty to help his little place stand out. In January he got For all the headaches and headwinds, more still packs in the crowds. On a recent Thursday—the the Falafel Shop certified by Brooklyn-based OK kosher restaurants are on the way. Kornblum, the busiest night of the week—people savored steaks and Kosher Certification, probably the OU’s biggest magazine publisher, says his biweekly newsletter frites. No one seemed to miss the clarified butter that competitor and a rising player among health- and regularly features two or three new ones. steakhouses typically use to finish their entrées, and alternative-food producers. Steven Traube, former operations chief at Prime it was easy to overlook that the food was kosher. Tov’s was an easier conversion than most because Grill, a high-end kosher restaurant in midtown, is A big part of keeping kosher, however, is that it the restaurant doesn’t serve meat, but the process preparing to launch the Wall Street Grill, an upscale forces people to think about what they eat. So is it a was nonetheless far from easy. He had to close for a place with outdoor seating. “Kosher customers used good thing that kosher-keepers can go to a restau- week as a crew sanitized cooking equipment and to be forced to accept what was out there,” he said. rant and enjoy themselves as anyone else would? surfaces with blowtorches and immersed utensils in “Nowadays, they appreciate great quality products Rabbi Moshe Krupka, executive vice president at a ritual bath whose pool had to be connected direct- in a nice restaurant with good service and no price- Touro College and a former OU official, worries about ly to a natural well or consist of collected rainwater. gouging for inferior product. The market has shown that. “Are these restaurants the trophy, the thing He also went through a couple of kitchen supervisors that you can’t fool discerning customers for too that epitomizes the arrival of observant Jews into before finding one he felt he could work with. Worst long.” society?” he asked. “I hope not. But I enjoy a of all, going kosher meant sacrificing Friday-night Le Marais, the grande dame of high-end kosher, good restaurant.” Ⅲ

UNORTHODOX CHALLENGE Despite hiccups, kosher restaurants are pushing forward in one Hasidic, but rapidly gentrifying, Brooklyn neighborhood

CLARA SANTOS PEREZ, 59, didn’t own any long black skirts before March street from Basil. The restaurant opened in January 2014 as Woolstone’s first 2010. But when she became the general manager of Basil Pizza & Wine Bar, a culinary venture. Today, it serves 2,000 kosher burgers a week. Brooklyn kosher eatery frequented by Orthodox Jews, that quickly changed. “We’re part of a community, and though I would say 60% to 70% of our cus- “It was very challenging in the beginning,” said Perez. The Hasidic rabbis who tomers at any given time are coming from out of the area, we still believe it’s certified the restaurant for kashrut demanded that employees dress modestly in important for a small business to give back,” said Woolstone. To make sure local accordance with Orthodox law. (The restaurant, pictured, is certified by OK Kosher Chabad patrons felt comfortable in the hip new spot, he selected a small, local Certification, in Brooklyn.) For Perez, a Catholic and native of Colombia, the high- and exceptionally stringent label to certify his kashrut, the Vaad Hakashrus of necked shirts, long sleeves and knee-sweeping frocks were Crown Heights. completely foreign. “I thought they should worry about the Working with the agency has not been easy, said the food and not the way that we have to look and dress,” she young Australian food entrepreneur. He’s had to battle for said. approval of many of his ingredients, including truffle oil for She quickly came to realize that high-end kosher dining mayonnaise, red wine vinegar for pickling onions and beets, in the Hasidic Chabad enclave of Crown Heights meant and maple syrup for barbecue sauce. more than just double-checking ingredients. “Every item that I bring in I have to run by them,” “Even though we stress that this is just a great restau- Woolstone said, a note of frustration in his voice as he rant that happens to be kosher, your average customer described the “arbitrary” nature of kosher certification. here is a kosher customer,” she said, pointing to a large “Sometimes the decision not to allow an item is based solely picture of the late Lubavitcher rebbe, Rabbi Menachem on the fact that it would be too much effort for them to go Mendel Schneerson, hanging on the wall opposite the dining area. “They have down to the factory and figure out if it’s kosher or not.” their culture. We try to accommodate that.” Selecting meat that is up to standard is by far the hardest challenge, he said. Gaining the stamp of approval, or hechsher, from a top kosher certifying Orthodox law sets stringent rules for how meat is slaughtered and salted, in addi- agency is a hard-earned right of passage for restaurants catering to religious tion to specifying which parts of the animal can and cannot be used. Jews. In the six years since Basil opened, the rapidly gentrifying neighborhood of “There’s no choice when it comes to meat,” said Woolstone, who buys his beef Crown Heights has become a hot spot for fine kosher dining. Eastern Parkway, at a 30% premium. “I’m currently buying meat at sky-high prices because my the main thoroughfare, once served as an unspoken dividing line between the hechsher only has three places I can buy it from.” neighborhood’s Hasidic and West Indian communities, but today kosher restau- Despite the community’s quirks and strict demands, Woolstone called rants are steadily pushing past the boundary. Perez and her managing partner, Brooklyn his ideal location. He comes from a Chabad background and values the Danny Branover, are slated to open a new restaurant, Meat, in August even far- community’s moral customs, even if that makes running a business difficult. In ther north of Eastern Parkway. the coming years, he hopes to open more innovative venues. To keep up with the diverse customer base, ensuring the highest level of “When you love food and you love Jews, it’s going to be a journey,” he said. Ⅲ kosher certification is a must, said restaurateur Tzemach Woolstone, 25, the owner and chief chef at Boeuf & Bun, an artisanal hamburger joint across the —HANNAH DREYFUS BUCK ENNIS

MARCH 7, 2016 | CRAIN’S NEW YORK BUSINESS | 17 Advertising Supplement to Crain’s New York Business

Renaissance termed the month of February the slow- est for all U.S. IPOs since the economic downturn of 2008-2009. IPO action in both December 2015 and January 2016 represented 7-year lows, according to Renaissance.

Nevertheless, Steve Hobbs, managing director at Going Public audit-and-consulting fi rm Protiviti, said the delay may be short-lived.

“Yes, overall economic conditions and current events are impacting the market,” From raising capital to gaining credibility, Hobbs said. “But we’re coming off a year and a half IPOs remain a powerful corporate boost of pretty healthy valuations and market activity, and there is still a fair amount of optimism out there. If the U.S. economy can avoid another recession, I think that within a matter of months Edge Therapeutics had a through the trials,” said with suppliers, vendors and months of 2015, the number the markets could return.” problem. The founders of Andy Einhorn, CFO at Edge. sometimes with customers,” of U.S. companies success- the Berkeley Heights, N.J.- McCooey said. “For better fully making IPOs dropped Hobbs noted that a large based biotech company “We wanted to make sure or worse—and you hope by more than 40 percent “shadow IPO pipeline” made had an idea for a new drug our options for raising cap- it’s better and better—your compared with 2014, ac- up of private companies delivery system called ital were as broad as they company stock will be spo- cording to IPO research fi rm with large valuations poised Precisa, which eases symp- can be,” Einhorn said. “It’s ken about and discussed, Renaissance Capital. Current to go public will want to ac- toms for patients suffering about having access to a and you’ll have the oppor- market conditions remain cess public investors soon. from brain hemorrhages tied public pool of equity capital. tunity to tell your story in volatile, and companies that to aneurysms. Beginning in We’re not here to exit this many venues.” had planned to go public “If you look at the cycles for 2009, the company tapped business, but to grow it and may wait, hindering their IPOs, the windows could be family, friends and angel deliver life-saving solutions Bill Day, CEO of Tremor Vid- plans for growth. open for three months, or investors to raise money to to patients. It’s essential to eo, a programmatic video for 18 months,” Hobbs said. develop the technology and make sure our access to advertising company that Just a handful of companies “You never know how long. embark on clinical trials. dollars doesn’t constrain went public in 2011, agreed. have gone public so far in The real message here for our ability to achieve those 2016, mostly in the biotech- companies thinking about Over the next few years, objectives.” “One thing that’s unique nology arena: Avexis Inc., going public is that if it’s Edge gained funding from about being a public com- Beigene, Editas Medicine something they intend to do, various private sources, MORE PATHWAYS pany is telling your story,” Inc. and Proteostasis Ther- just go for it.” including $56 million last TO MORE MONEY April in venture capital fund- GOVERNMENT ing to complete its second While companies can enjoy INCENTIVES phase of clinical trials and a signifi cant infusion of cap- “ Going public for us was a launch a third phase. ital upon launching an IPO, Even when IPO opportuni- the market can be accessed ties are slack, other path- What was the problem, later for additional capi- chance to be a leader in the ways exist to raise capital to you ask? Bringing a new tal—a pathway to growth fund continuing operations. pharmaceutical product to that can be less expensive industry, and tell our story Those include government market and preparing for than private funding or debt incentives. future growth requires a fi nancing. signifi cant amount of money. as well.” New York state’s START-UP Continuing R&D and addi- According to Bob McCooey, BILL DAY, CEO OF TREMOR VIDEO NY program supports tech tional trials, and achieving senior vice president, listing startups by partnering them regulatory approval—not to services, at Nasdaq, going with eligible universities with mention obtaining operation- public can also be hugely Day said. “In some indus- apeutics debuted in Febru- advanced resources in tax- al expenses to stay afl oat—all incentivizing for employees. tries, there’s often a lack of ary, along with outlier Silver free zones. In return, those consume a bundle of dough. Apple, Walmart and many understanding about what Run Acquisition Corp., a so- universities are also exempt Edge went public in Septem- other companies have made you do. Going public for us called blank-check holding from a variety of taxes and ber 2015, raising $93 million millionaires of their initial was a chance to be a leader company that plans to use franchise and maintenance in gross proceeds. employees and sharehold- in the industry, and tell our its $450 million in IPO pro- fees. Employees of selected ers, either via grants or stock story as well.” ceeds to make acquisitions startups also receive similar “The U.S. equity capital mar- options. within the energy industry. tax benefi ts. ket is the deepest and most There’s no denying that One New York based food liquid market for funding “And going public along today’s IPO market is slow. and beverage company, In New Jersey, the Angel in the world, and we want- with peers and competi- With the occurrence of an OTG EXP, said it planned Investor Tax Credit Program, ed to ensure our access to tors can give a company a economic slump and mar- to test the IPO waters later started in 2013 to stimulate funds to bring this medicine different level of credibility ket corrections in the fi nal this year. early-stage investment in

Going_Public_5.indd 1 3/1/16 1:51 PM Advertising Supplement to Crain’s New York Business

emerging technology, pro- discipline of running a public of being a public company. uncertainties about whether windows and markets, you vides investors with a variety company, with its account- Beyond funding for growth, automatically served video probably have the wrong of corporate and income tax ability to rules and the an essential consideration ads across TV, computer and mentality for being a public credits to encourage them required regulations, can be of going public is the mobile screens is a viable company in the first place.” to fund in-state startups. a way of professionalizing marketing benefit of being industry. Edge Therapeutics, in fact, and institutionalizing the perceived as a leader and Day said access to capital to was the first beneficiary of company.” innovator in an emerging “Deciding to go public is not fund growth remains strong. the Angel program during industry niche, he said. a light-switch thing,” said the company’s private-fund- Here, we’re edging into a Day. “If you start to think “We still feel that way, two ing years, and ultimately discussion of corporate Tremor’s 2011 public offering about it when the public years after going public,” he raised more than $9 million culture as much as of the raised some $118 million, and market is super open and said. “We’re in the best mar- through the program before raising of capital. Tremor’s boosted it through uncertain hot, you’re probably late. ket in the media landscape, going public last year. Bill Day said that companies times in the emerging field You have to understand that and being a public company poised for growth have to of programmatic adver- you can’t control external will be very, very beneficial “Private companies are find- think about the “context” tising, and amid market things. If you worry about for us.” ing it easier to find financing cheaply and on relatively attractive terms these days,” said Alexander Ljungqvist, a professor of finance at New York University Stern School of Business. “What’s important for companies to determine is what kind of investors they want.

“With a private strategic alliance partner, you’re bringing in a heavyweight investor who will exercise some amount of control,” he said. “And public market investors come with many requirements, along with disclosure rules. You may not like either one.”

Nevertheless, Ljungqvist ac- knowledges that being listed on a stock exchange can be a potent influence over public perception and boost a company’s credibility.

“Consumer-oriented companies in particular could benefit from having their names in the media more,” he said. “Re- search from as long ago as the 1980s and 1990s suggests that a marketing benefit to going public is plausible.”

‘A NEW SET OF TOOLS’

Brian Feinstein, a partner at Bessemer Venture Part- ners, a venture capital firm, agreed that going public represents “the moment to both raise capital and have a new set of tools.” He noted that offering public stock can ease the process of growing via future acquisitions. Also, acquiring debt financing—loans that must be repaid—may be a more attractive proposition to issuing banks when lending to a public company.

“And there’s a more subtle element,” said Feinstein. “Some CEOs say that the

Going_Public_5.indd 2 3/1/16 1:51 PM P034-35CL_CN_20160307.qxp 3/4/2016 11:27 AM Page 18

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1RWLFHRI4XDOLÀFDWLRQRI675$7(*,& Notice of Qualification of Mobile Leasing ACCOUNTING AND AUDITING SERVICES REQUEST FOR PROPOSALS 3$571(562))6+25()81'9,,/3 Solutions, LLC. Authority filed with NY Dept. of $SSOIRU$XWKÀOHGZLWK6HF\RI6WDWH State on 12/1/15. Office location: NY County. The New York City Educational Construction Fund (“ECF”) is seeking proposals RI1< 661< RQ2IÀFH Princ. bus. addr.: 850 Technology Way, from organizations that are capable of providing accounting and auditing servic- ORFDWLRQ1<&RXQW\/3IRUPHGLQ&D\- Libertyville, IL 60048. LLC formed in DE on es for the examination of annual financial statements. A copy of the Request for PDQ,VODQGV &, RQ661< 10/26/15. NY Sec. of State designated agent Proposal (RFP) may be obtained from ECF by contacting the Fund at (718) 472- GHVLJQDWHGDVDJHQWRI/3XSRQZKRP of LLC upon whom process against it may be 8287. Responses to the RFP must be received at the Fund’s offices by 12 noon, SURFHVVDJDLQVWLWPD\EHVHUYHG661< served and shall mail process to: c/o CT April 8, 2016. VKDOOPDLOSURFHVVWRFR&RUSRUDWLRQ Corporation System, 111 8th Ave., NY, NY 10011, regd. agent upon whom process may New York City Educational Construction Fund 6HUYLFH&R6WDWH6W$OEDQ\1< be served. DE addr. of LLC: 1209 Orange 30-30 Thomson Avenue, 1st Floor 1DPHDQGDGGURIHDFKJHQHUDO St., Wilmington, DE 19801. Cert. of Form. Long Island City, New York 11101 SDUWQHUDUHDYDLODEOHIURP661<&, filed with DE Sec. of State, 401 Federal St., (718) 472-8287 phone (718) 752-5222 fax DGGURI/3FR0DSOHV&RUSRUDWH 6HUYLFHV/LPLWHG32%R[8JODQG Dover, DE 19901. Purpose: all lawful purposes. +RXVH*HRUJH7RZQ*UDQG&D\PDQ &,.<&HUWRI/3ÀOHGZLWK 5HJLVWUDURI([HPSWHG/LPLWHG3DUWQHU- 1RWLFHRI4XDOLÀFDWLRQRI7+&20- EVENT VKLSV*URXQG)O&LWUXV*URYH%OGJ 0(5&,$/06,//&$SSOIRU$XWK *RULQJ$YH*HRUJH7RZQ*UDQG&D\- ÀOHGZLWK6HF\RI6WDWHRI1< 661< PUBLIC AND PDQ&,3XUSRVH$Q\ODZIXODFWLYLW\ RQ2IÀFHORFDWLRQ1< LEGAL NOTICES &RXQW\//&IRUPHGLQ'HODZDUH '( RQ Why Business Leaders Meditate: A Town Hall 661

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Notice of Formation of KLam Broadway Notice of Qualification of BioMed NOTICE OF FORMATION OF LOROD LLC. Formation of K & M Associates CRE, LLC Realty LLC. Authority filed with NY Articles of Organization filed with the filed with the Secy. of State of New York //&$UWVRI2UJÀOHGZLWK6HF\RI Dept. of State on 1/19/16. NYS ficti- Secretary of State of NY (SSNY) on (SSNY) on 12/28/15. Office loc.: New 6WDWHRI1< 661< RQ2IÀFH tious name: BioMed Realty New 01/21/2016. Office location: NEW York County. SSNY designated as agent ORFDWLRQ1<&RXQW\661

City Tails NYC, LLC Arts of Org filed with Notice of Formation of NUTMEG ASSO- CIATES, LLC Arts. of Org. filed with NY Sec of State (SSNY) on 1/8/16. Notice of Qualification of Avalon Notice of Qualification of Avalon Secy. of State of NY (SSNY) on Office: New York County. SSNY desig- Yonkers Sun Sites, LLC. Authority Yonkers ATI Site, LLC. Authority filed nated as agent of LLC upon whom 02/01/16. Office location: NY County. filed with NY Dept. of State on with NY Dept. of State on 1/27/16. process may be served. SSNY shall SSNY designated as agent of LLC upon 1/27/16. Office location: NY County. Office location: NY County. Princ. mail process to: 95 Horatio St, #6V, whom process against it may be served. Princ. bus. addr.: 671 N. Glebe Rd., bus. addr.: 671 N. Glebe Rd., Ste. NY, NY 10014. General Purposes. SSNY shall mail process to c/o Timothy Ste. 800, Arlington, VA 22203. LLC 800, Arlington, VA 22203. LLC P. Terry, 667 Madison Ave., 24th Fl., NY, formed in DE on 1/22/16. NY Sec. of formed in DE on 1/22/16. NY Sec. of NY 10065. Purpose: Any lawful activity. State designated agent of LLC upon State designated agent of LLC upon Name of Foreign LLC: Pennypacker Labs whom process against it may be whom process against it may be LLC. Authority filed with NY Dept. of State: served and shall mail process to: c/o served and shall mail process to: c/o 10/23/13. Office loc.: NY Co. LLC formed in DE: Notice of Formation of SELKNAM CT Corporation System, 111 8th CT Corporation System, 111 8th 8/30/13. NY Sec. of State designated agent MANAGEMENT LLC Arts. of Org. Ave., NY, NY 10011, regd. agent Ave., NY, NY 10011, regd. agent of LLC upon whom process against it may be filed with Secy. of State of NY (SSNY) upon whom process may be served. upon whom process may be served. served and shall mail process to: c/o Business on 02/01/16. Office location: NY DE addr. of LLC: c/o The DE addr. of LLC: c/o The Filings Inc., 187 Wolf Rd., Ste. 101, Albany, NY County. SSNY designated as agent Corporation Trust Co., 1209 Orange Corporation Trust Co., 1209 Orange 12205. DE addr. of LLC: 108 W. 13th St., of LLC upon whom process against it St., Wilmington, DE 19801. Cert. of St., Wilmington, DE 19801. Cert. of Wilmington, DE 19801. Cert. of Form. filed with may be served. SSNY shall mail process Form. filed with DE Sec. of State, Form. filed with DE Sec. of State, DE Sec. of State, 401 Federal St., Dover, DE to the LLC, 242 W. 137th St., NY, NY 401 Federal St., Dover, DE 19901. 401 Federal St., Dover, DE 19901. 19901. Purpose: any lawful act. 10030. Purpose: Any lawful activity. Purpose: all lawful purposes. Purpose: all lawful purposes.

MARCH 7, 2016 | CRAIN’S NEW YORK BUSINESS | 21 CRAIN’S: Tuesday, March 15, 2016 Con Edison Arts & Culture Breakfast 4 Irving Place 8:30 a.m. – 9:00 a.m. Registration & Networking Breakfast 9:00 a.m. – 10:30 a.m. Program A View from New York’s Cost to Attend: $115 for individual ticket(s) $1,150 for table(s) of 10 Arts Leaders You must be pre-registered to attend this event. Join Crain’s and New York’s art leaders as they share best practices and put a No refunds permitted. spotlight on the vital role the Arts & Culture community plays in driving tourism and For more information: ensuring continued growth and diversity of their organization and the city’s economy. Ashlee Schuppius OPENING ARMCHAIR: PANEL DISCUSSION: 212-210-0739 [email protected] For sponsorship information: Irene Bar-Am 212-210-0133 [email protected]

Alan Fishman Andrew Byrne Ty Jones Andrea Miller M.A. Papper Board Chair, Brooklyn Artistic Director Producing Artistic Artistic Director Artistic Director REGISTER TODAY Academy of Music Symphony Space Director, The Classical Gallim Dance The Town Hall crainsnewyork.com/events-artsmarch2016 Theatre of Harlem Host Sponsor:

Last week’s ad misnamed Ty Jones, producing artistic director of the Classical Theatre of Harlem, and M.A. Papper, artistic director of Town Hall.

CRAIN’S: Business of Tuesday, March 22, 2016 John Jay College of Criminal Justice 860 11th Avenue 8:30 a.m. – 9:00 a.m. Registration & Networking Breakfast Startups 9:00 a.m. – 10:00 a.m. Program Cost to Attend: Join Crain’s as we examine how startups get off the ground—and how to scale $85 for individual ticket(s) ﬂ edgling companies to take advantage of all that New York has to offer: access $850 for table(s) of 10 to capital; talented workers; and city, state and federal economic development You must be pre-registered to attend this event. programs that business owners often overlook and leave untapped. No refunds permitted.

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Host Sponsors: 20160307-NEWS--0023-NAT-CCI-CN_-- 3/4/2016 3:07 PM Page 1

GOTHAM GIGS

VICTOR HOGUE with a table of condoms and HIV/AIDS prevention literature to promote PrEP.

Fighting by night against HIV/AIDS Health worker Victor Hogue travels the city’s disco floors to promote a drug that can keep the disease at bay

he outreach table covered in condoms and HIV- promiscuity and lessen condom use, promoting it has prevention pamphlets that pops up every few become a key part of a city and state program to “End the VICTOR HOGUE T weeks at Castro, a gay bar in Washington Epidemic” of HIV/AIDS, and is the centerpiece of the Heights, is low on the list of attractions there. As the city’s “Play Sure” campaign. From a high of 15,000 new AGE 28 Thursday after Valentine’s Day turned into Friday, the DJ cases a year in the 1990s, New York state saw more than BORN Mississippi played deafening hip-hop, augmented by a live drummer 3,000 cases of HIV diagnosed in 2013. The state recently RESIDES Harlem and colorful strobe lights. Patrons danced set aside $15 million to make the drug and flirted, blew smoke from hookahs and My main goal is more available. EDUCATION B.S. in biology and watched male performers in nothing but “ After Hogue’s conversation partner chemistry, Tennessee State briefs grind on top of the bar. to get the word defected to the dance floor, he noted the University; Master of Public Health, Undistracted, Victor Hogue, a care out about man’s gender, age range (24 to 50), race Meharry Medical College technician at the Ryan/Chelsea-Clinton protecting (black) and primary language (English) on BIG PRIZE On Dec. 1, 2015 (World Community Health Center in Hell’s yourself a sheet he shared with three colleagues. AIDS Day), Hogue received the Kitchen, approached a reveler in a stylish ” When the crew packed up after 90 min- Commissioner’s Special Recognition white sweater to ask if he knew about utes, they had spoken to 27 people, almost Award from the state Department of PrEP. Screaming into each other’s ears at close range, he all black and Hispanic men. At gay bars in Hell’s Kitchen Health for his HIV/AIDS outreach learned that the man had several friends who were taking and Chelsea, the team often reaches about 50 people. and advocacy work. the daily pill, which helps prevent HIV transmission. “People here just want to party and have a good time,” WALLFLOWER “I’m not really a The people Hogue talks to at gay bars around the city said Hogue, who had arrived at work at 8:30 that morn- club-type person,” said Hogue, who are more likely to be aware of PrEP (often known by the ing and looked far too tired to join them. lives with two roommates in Harlem. brand name Truvada) than they were when he began his Hogue, who counseled people with other chronic dis- He said he’ll party every once in a work a year and a half ago. “I feel like New York is really eases at his previous job in Nashville, said he likes while, but prefers relaxing at a pushing it,” he said. “Everywhere you go—trains, bus focusing on HIV prevention because it’s so achievable. lounge or bar with his friends. stops—you see it.” “My main goal is to get the word out about pro-

ALAN CHIN Despite early concerns that PrEP would encourage tecting yourself,” he said. – CAROLINE LEWIS

MARCH 7, 2016 | CRAIN’S NEW YORK BUSINESS | 23 20160307-NEWS--0024-NAT-CCI-CN_-- 3/4/2016 3:07 PM Page 1

EXECUTIVE MOVES

joined the finance-tech and entertainment com- of sales at Episerver. estate firm as director of LINCOLN CENTER firm as a director. He was pany. He was previously Ghostery: Jim Weber, 45, sales. He was previously previously a director at senior vice president and joined the technology firm director of sales at Town RUSSELL GRANET, 51, Practising Law Institute. executive producer. as chief financial officer. He Residential. was promoted to the William Terkeltoub, 29, Alison Hellman, 33, was was formerly chief financial Rose Associates: Charlotte newly created role of joined as a director. He was promoted to senior vice officer at iLevel Solutions. Sturgis, 37, was promoted to executive vice president previously an investment president of marketing and TD Bank: head of construction at the of Lincoln Center banking analyst at promotion. She was for- Emily real estate company. She Education, Community FocalPoint Partners. merly vice president of Stoddard, was previously managing McGraw-Hill Education: marketing. 36, was director of preconstruction. Engagement, and Jonathan Mariner, 61, was Metropolitan Realty promoted Santander Bank: Joshua International. He was appointed a director at the Associates: Todd Bassen, to senior Montesinos, 37, joined as previously executive publishing company. He 56, joined the real estate vice presi- senior CRA investment director, Lincoln Center continues as chief invest- investment company as dent of middle-market portfolio manager. He was Education. ment officer at Major managing principal and banking for metro NYC. She formerly senior asset League Baseball. chief investment officer. was formerly market com- manager at Enterprise Tourette Association of He was previously co- mercial credit manager. Community Asset Hub Inter- Cara Marino Gentile, 37, was America: John Miller, 41, head of real estate at Stroock & Stroock & Lavan: Management. national promoted to senior vice joined the nonprofit as WeWork. Erica Buckley, 42, joined MorrisAnderson: Steven Northeast: president. She was previ- president and chief execu- Canary: Bob the law firm as special Agran, 48, was promoted to Patti ously vice president. tive. He was formerly CEO Stohrer, 48, counsel. She was formerly principal and shareholder at Clement, 56, Ross Wallenstein, 37, was and executive director at joined the chief of the Real Estate the consulting firm. He was was pro- promoted to vice president. the American Red Cross on security- Finance Bureau at the New previously managing moted to He was previously senior Long Island. technology York State Office of the director. senior vice president at the account supervisor. MSG company as Attorney General. — ERICA DAVIES insurance company. She International Bar Networks: chief mar- Kobalt: Ryan Wright, 42, was previously first vice Association: Philip Jeff Filippi, keting officer. He was for- was promoted to chief EXECUTIVE PROMOTIONS president. Berkowitz, 63, was appoint- 55, was merly senior vice president marketing officer at the To get your announcement Marino Organization: Robert ed vice chair of the IBA’s promoted of brand creative at Yahoo. media and entertainment into Crain’s, please submit Barletta, 43, was promoted Discrimination and to senior Boxever: David Kern, 47, company. He was previ- it online. Fill out the form at to executive vice president Equality Law Committee. vice presi- joined the travel-marketing ously senior vice president CrainsNewYork.com/ of the public-relations firm. He continues as a share- dent of production and platform as vice president of marketing. execmoves. The Executive He was previously senior holder at Littler Mendelson. programming and execu- of global sales. He was for- Warburg Realty: Brennan Moves column is also vice president. Ansarada: Mark Celler, 31, tive producer at the media merly senior vice president Zahler, 36, joined the real available online. Post Yr Event!

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24 | CRAIN’S NEW YORK BUSINESS | MARCH 7, 2016 20160307-NEWS--0025-NAT-CCI-CN_-- 3/4/2016 7:29 PM Page 1

SNAPS

Roundabout Theatre benefit launches $50M fundraising effort

The Roundabout Theatre Company announced at its Feb. 29 gala that it had kicked off a $50 million fundraising effort to celebrate its 50th anniversary. The funds will be used to Winter at Museum of the City expand the theater’s programming and boost its involvement with students and teachers of New York in the city’s public schools. Additionally, the gala raised $4 million for regular operations.

Laura Lofaro, founder of executive search firm Sterling Resources International, and her husband, Jim Freeman, founder of his namesake investment bank, at the Winter Ball for the Museum of the City of New York on Feb. 23.

Sarah Kate Connick, with her father, entertainer Harry Connick Jr., and Tony winner and honoree Audra McDonald at a benefit for the Roundabout Theatre Co. on Feb. 29 at the Waldorf Astoria Hotel. Othon Prounis, a partner at law firm Ropes & Gray, and his wife, museum trustee Purim Ball brings in $2M for the Jewish Museum Kathy Prounis, at the ball, held at the Pierre Hotel. The event raised about $600,000.

Purim Ball co-chairs Zygi Wilf and Actress Sandra Bernhard his wife, Audrey Wilf, honoree and designer Isaac Elizabeth Wilf and co-chairs Jane Mizrahi at the Purim gala Wilf and her husband, Mark Wilf, for the Jewish Museum. at the fundraiser. The Wilf family owns the Minnesota Vikings foot- ball team. SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO, [email protected] WILL HOFFMAN/PATRICK OWEN RAGOZZINO/SOCIALSHUTTERBUG.COM, MCMULLAN, KELLY KOLLAR

MARCH 7, 2016 | CRAIN’S NEW YORK BUSINESS | 25 20160307-NEWS--0026-NAT-CCI-CN_-- 3/4/2016 2:15 PM Page 1

FOR THE RECORD*

pastries and sandwiches, March 16 for the recon- NY, was represented in- represented by Ripco Real turer will occupy part of a NEW IN TOWN with expanded options in struction of Martin Luther house by David Zar. The Estate’s Esther Bukai and showroom on the 20th the future. King Jr. playground, asking rent was $79 per Richard Skulnick. The floor. The tenant was rep- Gentle Monster located on Malcolm X square foot. landlord, Aurora Capital resented by Hudson Real 79 Grand St. Pressed Juicery Blvd. between West 113th Associates, was repre- Estate Partners’ Jack The Korean eyewear brand 1240 Lexington Ave. and West 114th streets in RETAIL sented by a team in- Senior and Alexander opened its first North The Los Angeles-based Manhattan. Contact TJ Maxx signed a 10- house. The asking rent Schwartz. The landlord, American location, in chain opened its second Michael Shipman at (718) year lease for 20,000 was $50 per square foot. Savitt Partners, was repre- SoHo. A staff member New York location, on the 760-6705 or michael square feet at 5 W. 125th sented in-house by Nicole greets customers before Upper East Side. Besides [email protected]. St. The department store Uniti Fashion signed an Goetz, Brian Neugeboren walking them through the juices, offerings include will occupy the lower eight-year lease for 11,300 and Bob Savitt. The asking collections, which include cold-pressed coffee, spe- Fire Department level of the six-story square feet at 530 Seventh rent was $65 per square custom-fit frames starting cialty waters and grab- of New York building. The tenant was Ave. The apparel manufac- foot. at $250. The store also fea- and-go snacks. Seeks competitive sealed tures a gallery space that bids by 4 p.m. on March changes its art display 29 for the services of a every three months. BANKRUPTCIES qualified contractor to DEALS ROUNDUP provide installation and TARGET/SELLERS TRANSACTION SIZE BUYERS/INVESTORS TRANSACTION TYPE Shipwreck Lounge 4623 Abdul on Church repair services for over- [IN MILLIONS] 383 Troutman St., Ave. Corp. head doors at FDNY facili- Brooklyn 4623 Church Ave., ties citywide. Contact XO Communications, $1,800.0 Verizon Communications Inc. SB M&A fiber-optic network (Manhattan) Owners of Brooklyn wine Brooklyn Shannon Cardone at (718) business/XO bar Tuffet opened a late- Filed for Chapter 11 bank- 999-2590 or contracts@ Communications night bar in Bushwick. ruptcy on Feb. 18. The fil- fdny.nyc.gov. The bar is open to the ing cites estimated assets RimRock Oil & Gas/ $500.0 Warburg Pincus (Manhattan) GCI not disclosed public only from 1 a.m. to of $100,000 to $500,000 GOODS AND SERVICES 4 a.m.; it is available to and estimated liabilities of Department of Oscar Insurance Corp. $400.0 Fidelity Investments; Formation8 GCI patrons of the nearby $500,001 to $1 million. Environmental Protection (Manhattan)/not disclosed Partners; General Catalyst Partners; Grand Paradise theater all The creditors with the Seeks competitive sealed Goldman Sachs Group, merchant banking division (Manhattan); other times. Options largest unsecured claims bids by 11:30 a.m. on Google Capital; GV; Hommels Holding include a mango-and- are Maria Holdings Inc., March 16 for the disposal GmbH; Horizons Ventures Ltd.; coconut-milk rum drink owed $460,000, and of residuals from various Khosla Ventures; Founders Fund; Thrive Capital (Manhattan); Wellington called the Dunes. Columbia Capital Inc., wastewater treatment Management Group owed $242,000. plants. Contact Fabian Shuya Cafe de Ramen Heras at (718) 595-3265 or West 8th tower in Seattle/ $370.0 RREEF Property Trust Inc. SB M&A 42-13 Broadway, Hot Shot HK [email protected]. AEW Capital Management (Manhattan) Astoria, Queens 1407 Broadway Housing Authority Agency Platform Inc. $250.0 Arbor Realty Trust Inc. SB M&A The noodle shop opened in Filed for Chapter 11 bank- (Manhattan)/Arbor (Uniondale, L.I.) Astoria. The menu offers ruptcy on Feb. 26. The fil- Seeks requests for propos- Commercial Mortgage ramen in chicken and fish ing cites estimated assets of als by 2 p.m. on March 30 (Manhattan) broths, as well as pickled $1,000,001 to $10 million for the financing of an RR Media Ltd./Del-Ta $245.9 SES ASTRA S.A. SB M&A vegetables, pork buns and and estimated liabilities of energy performance con- Engineering Equipment homemade potato chips. $1,000,001 to $10 million. tract. Contact Meddy Ltd.; Diker Management Beverage options include Ghabaee at (212) 306-4539 (Manhattan); Harel PIA Salty Dog Restaurant Ltd. Mutual Funds Ltd.; Kardan yuzu soda and four differ- or meddy.ghabaee@nycha Communications Ltd.; ent types of tea. 7509 Third Ave., Brooklyn .nyc.gov. Rapac Communication & Filed for Chapter 11 bank- Infrastructure Ltd.; Viola A.V. RRsat, limited partnership; Sunrise Market ruptcy on Feb. 24. The fil- Viola Credit; Viola Private 100-31 Metropolitan Ave., ing cites estimates assets REAL ESTATE DEALS Equity; VPartners Forest Hills, Queens of $0 to $50,000 and esti- The fresh foods market mated liabilities of COMMERCIAL Prestone Products Corp./ $230.0 Centerbridge Partners FB M&A Rank Group Investments Ltd. (Manhattan) opened in Forest Hills. The $1,000,001 to $10 million. Janklow & Nesbit signed new store offers only fresh The creditors with the an 11-year deal for 14,875 D&J (Shanghai) Investment $222.0 Individual investors; GCI and organic fruits and largest unsecured claims square feet at 285 Madison Management Consulting Co./ Warburg Pincus (Manhattan) vegetables among other are George Kabbez, owed Ave. The literary agency not disclosed products, such as tea. $100,000; Darrow Everett, will occupy the 21st floor. owed $5,000; and Big The tenant was represent- Upper West Side building at $26.8 Greystone Property SB M&A 164 W. 74th St./Phoenix House Development Corp. Apple Air, owed $2,555.29. ed by CBRE’s Paul Amrich Foundation Inc., endowment arm (Manhattan); Prime Rok COMPANY MOVES and Neil King. The land- Real Estate (Manhattan) Transcare New York Inc. lord, RFR Realty, was rep- Christofle 1 MetroTech Center, resented in-house by A.J. MakeSpace Labs Inc./ $17.5 Harmony Partners (Manhattan); GCI not disclosed Upfront Ventures 396 Bleecker St. Brooklyn Camhi and Mitchell

The boutique opened its Filed for Chapter 7 bank- Konsker, and JLL’s Selected deals announced for the week ended Feb. 25 involving companies in metro New York. SB M&A: second city location, in the ruptcy on Feb. 24. The fil- Alexander Chudnoff. The Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without the participation of a financial buyer. GCI: Growth capital investment represents new money invested in a West Village. Similar to its ing cites estimated assets asking rents in the building company for a minority stake. FB M&A: Financial buyer M&A represents a minority or majority acquisition Madison Avenue flagship, of $10,000,001 to $50 mil- range from the mid-$60s of existing shares of a company with the participation of a financial buyer. the store will feature a sil- lion and estimated liabili- to $80 per square foot. SOURCE: CAPITALIQ ver-mirrored panel to dis- ties of $50,000,001 to $100 play artisan jewelry, and a million. Hanover Research honeycomb-inspired signed a five-year lease for GET YOUR NEWS ON THE RECORD installation. 5,500 square feet at *To submit company openings, moves or real estate deals, or to receive further information, GOVERNMENT 42-44 Greene St. The email [email protected]. Gratitude Bakeshop CONTRACT information-services firm For the Record is a weekly listing to help businesspeople in New York find opportunities, 629 Rogers Ave., Brooklyn OPPORTUNITIES will occupy the entire potential new clients and updates on customers. Bankruptcy filings from the Eastern and The bakery opened in fourth floor of the building Southern districts of New York are listed alphabetically, as are recently announced New Prospect-Lefferts Gardens. CONSTRUCTION SERVICES between Grand and York City agency contract opportunities. Real estate listings are provided in order of square It is the second location of Department of Parks and Broome streets. The tenant footage. Stock transactions at New York’s largest publicly held companies were filed with Gratitude Café, a popular Recreation was represented by the Securities and Exchange Commission. Listings are in order of transaction value, and the information was obtained from Thomson Reuters. Rogers Avenue spot. Menu Seeks competitive sealed CBRE’s Michael Hirsch. items include coffee, tea, bids by 10:30 a.m. on The landlord, Zar Property

26 | CRAIN’S NEW YORK BUSINESS | MARCH 7, 2016 20160307-NEWS--0027-NAT-CCI-CN_-- 3/4/2016 2:16 PM Page 1

PHOTO FINISH

Freight biz barges in

n the Bay Ridge waterfront in Brooklyn on a recent Thursday, a motley assortment of freight cars rolled off a 360-foot barge at 9 a.m. and onto the damp tracks of the 65th Street Rail Yard. Each car contained different cargo— Oa boxcar of beer, a tanker of heating oil—and had traversed New York Harbor from the Greenville Yard in Jersey City, destined for points east. After years of inactivity, the railroad that owned the barge line was bought by the Port Authority in 2008 and renamed New York New Jersey Rail, saving trains a 280-mile round-trip detour up to the Hudson River’s southernmost rail bridge in Selkirk, N.Y. Revenue is rolling in. In 2015, the railroad’s barge, which can handle 14 train cars at a time, moved 2,512 freighted cars, in two daily round- trips, up from fewer than 1,000 in 2009. That’s still a far cry from the early 1960s, when more than 100,000 rail cars a year traveled across New York Harbor. New clients, such as recycler EWG Glass in Jamaica, Queens, are driving demand. Two larger barges are in production in South Carolina. The PA wants to eventually move 24,000 cars a year. The rail line served by the yard runs through central Brooklyn to Ridgewood, Queens, then splits, with one route joining the Long Island Rail Road’s freight line and another running up through Connecticut. The barge operation also adds flexibility to a city reliant on truck freight, said Mark Hoffer, director of new port initiatives at the PA. If another storm washes out the region’s tunnels and bridges, the city could float in necessary supplies. — PETER D’AMATO PETER D’AMATO

MARCH 7, 2016 | CRAIN’S NEW YORK BUSINESS | 27 B:11.125” T:10.875” S:10.25”

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